This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Delek US Holdings Reports Record Net Income For Fourth Quarter And Full-Year 2012

Safe Harbor Provisions Regarding Forward-Looking Statements

This press release contains forward-looking statements that are based upon current expectations and involve a number of risks and uncertainties. Statements concerning current estimates, expectations and projections about future results, performance, prospects and opportunities and other statements, concerns, or matters that are not historical facts are “forward-looking statements,” as that term is defined under the federal securities laws.

Investors are cautioned that the following important factors, among others, may affect these forward-looking statements. These factors include but are not limited to: risks and uncertainties with respect to the quantities and costs of crude oil we are able to obtain and the price of the refined petroleum products we ultimately sell; management's ability to execute its strategy of growth through acquisitions and the transactional risks associated with acquisitions; our competitive position and the effects of competition; the projected growth of the industries in which we operate; changes in the scope, costs, and/or timing of capital and maintenance projects; losses from derivative instruments; general economic and business conditions, particularly levels of spending relating to travel and tourism or conditions affecting the southeastern United States; potential conflicts of interest between our majority stockholder and other stockholders; and other risks contained in our filings with the United States Securities and Exchange Commission.

Forward-looking statements should not be read as a guarantee of future performance or results and will not be accurate indications of the times at, or by which such performance or results will be achieved. Forward-looking information is based on information available at the time and/or management's good faith belief with respect to future events, and is subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in the statements. Delek US undertakes no obligation to update or revise any such forward-looking statements.

         

Delek US Holdings, Inc.

 

Consolidated Balance Sheets

 
December 31, 2012 December 31, 2011
(In millions, except share

and per share data)

ASSETS
Current assets:
Cash and cash equivalents $ 601.7 $ 225.9
Accounts receivable 256.6 277.1
Inventory 477.6 508.0
Other current assets 23.8   39.6  
Total current assets 1,359.7   1,050.6  
Property, plant and equipment:
Property, plant and equipment 1,456.2 1,317.3
Less: accumulated depreciation (332.0 ) (263.5 )
Property, plant and equipment, net 1,124.2   1,053.8  
Goodwill 72.7 69.7
Other intangibles, net 16.7 17.5
Other non-current assets 50.4   39.0  
Total assets $ 2,623.7   $ 2,230.6  
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable $ 568.8 $ 521.1
Current portion of long-term debt and capital lease obligations 52.2 68.2
Current note payable to related party 6.0
Obligation under Supply and Offtake Agreement 285.2 298.6
Accrued expenses and other current liabilities 92.9   100.8  
Total current liabilities 999.1   994.7  
Non-current liabilities:
Long-term debt and capital lease obligations, net of current portion 310.0 297.9
Note payable to related party 60.5
Environmental liabilities, net of current portion 10.4 9.7
Asset retirement obligations 8.3 7.9
Deferred tax liabilities 183.2 168.1
Other non-current liabilities 34.7   38.2  
Total non-current liabilities 546.6   582.3  
Stockholders’ equity:
Preferred stock, $0.01 par value, 10,000,000 shares authorized, no shares issued and outstanding
Common stock, $0.01 par value, 110,000,000 shares authorized, 59,619,548 shares and 58,036,427 shares issued and outstanding at December 31, 2012 and 2011, respectively 0.6 0.6
Additional paid-in capital 366.9 356.9
Accumulated other comprehensive income 0.4 1.8
Retained earnings 531.4 294.1
Non-controlling interest in subsidiaries 178.7   0.2  
Total stockholders’ equity 1,078.0   653.6  
Total liabilities and stockholders’ equity $ 2,623.7   $ 2,230.6  
         

Delek US Holdings, Inc.

 

Consolidated Statements of Operations

 
 

Three Months Ended

December 31,

   

Year Ended

December 31,

2012     2011 2012     2011
(Unaudited)
(In millions, except share and per share data)
Net sales $ 2,184.5 $ 2,001.0 $ 8,726.7 $ 7,198.2
Operating costs and expenses:
Cost of goods sold 1,923.4 1,871.4 7,704.4 6,429.9
Operating expenses 96.0 82.7 363.3 320.9
Impairment of goodwill 2.2 2.2
General and administrative expenses 28.8 19.5 103.5 81.4
Depreciation and amortization 21.3 20.8 82.5 74.1
(Gain) loss on sale of assets   1.0   (0.1 ) 3.6  
Total operating costs and expenses 2,069.5   1,997.6   8,253.6   6,912.1  
Operating income 115.0   3.4   473.1   286.1  
Interest expense 9.8 12.5 45.7 51.2
Interest income (0.1 ) (0.2 )
(Gain) loss on investment in Lion Oil       (12.9 )
Total non-operating expenses, net 9.7   12.5   45.5   38.3  
Income (loss) from continuing operations before income taxes 105.3 (9.1 ) 427.6 247.8
Income tax expense (benefit) 37.8   (2.8 ) 151.6   84.7  
Net income (loss) 67.5 (6.3 ) 276.0 163.1
Net income (loss) attributed to non-controlling interest 3.2   (0.3 ) 3.2   4.8  
Net income (loss) attributable to Delek $ 64.3   $ (6.0 ) $ 272.8   $ 158.3  
Basic earnings (loss) per share $ 1.08   $ (0.10 ) $ 4.65   $ 2.80  
Diluted earnings (loss) per share $ 1.06   $ (0.10 ) $ 4.57   $ 2.78  
Weighted average common shares outstanding:
Basic 59,529,771   58,023,936   58,719,968   56,543,977  
Diluted 60,424,529   58,023,936   59,644,798   57,026,864  
Dividends declared per common share outstanding $0.20 $0.22 $0.60 $0.33

Note: Our annual results for 2012 reflect an adjustment in the third quarter of 2012. This adjustment is due to an immaterial correction of an error related to inventory and cost of goods sold for Lion Oil Company, which is reported as a component of our refining segment. We recorded adjustments that decreased operating income in the third quarter of 2012 by $9.1 million ($5.8 million, net of tax). This revision decreased net income attributable to Delek by $5.8 million in the third quarter of 2012, and has been properly reflected in our annual reported results. We have concluded that these adjustments are not material to the statements of operations for the third quarter of 2012.

 
Delek US Holdings, Inc.
Condensed Consolidated Statements of Cash Flows
(In millions)
                     
Year Ended December 31,
2012     2011
Cash Flow Data    
Cash flows provided by operating activities: $ 462.9 $ 130.1
Cash flows used in investing activities: (159.2 ) (195.7 )
Cash flows provided by financing activities: 72.1       242.4  
Net increase in cash and cash equivalents $ 375.8       $ 176.8  
 
Delek US Holdings, Inc.
Segment Data
(In millions)
      Three Months Ended

December 31, 2012

  Refining     Retail     Logistics    

Corporate, Other and

Eliminations

    Consolidated
Net sales (excluding intercompany fees and sales) $ 1,530.8 $ 450.5 $ 201.4 $ 1.8 $ 2,184.5
Intercompany fees and sales 42.1 13.4 (55.5 )
Operating costs and expenses:
Cost of goods sold 1,368.5 409.8 196.7 (51.6 ) 1,923.4
Operating expenses 56.8   32.0   6.5   0.7   96.0
Segment contribution margin $ 147.6   $ 8.7   $ 11.6   $ (2.8 ) $ 165.1
General and administrative expenses 28.8
Depreciation and amortization 21.3
Gain on sale of assets
Operating income $ 115.0
Total assets $ 1,873.3   $ 425.6   $

245.8

  $

79.0

 

$ 2,623.7
Capital spending (excluding business combinations) $ 16.2   $ 11.5   $ 9.9   $ 14.2   $ 51.8
 
 
Three Months Ended

December 31, 2011

  Refining Retail Logistics

Corporate, Other and

Eliminations

Consolidated
Net sales (excluding intercompany fees and sales) $ 1,380.6 $ 448.9 $ 172.4 $ (0.9 ) $ 2,001.0
Intercompany fees and sales 45.9 8.6 (54.5 )
Operating costs and expenses:
Cost of goods sold 1,347.4 407.1 168.6 (51.7 ) 1,871.4
Operating expenses 47.0 31.1 4.6 82.7
Impairment of goodwill   2.2       2.2
Segment contribution margin $ 32.1   $ 8.5   $ 7.8   $ (3.7 ) $ 44.7
General and administrative expenses 19.5
Depreciation and amortization 20.8
Loss on sale of assets 1.0
Operating income $ 3.4
Total assets $ 1,630.6   $ 412.1   $ 201.1   $ (13.2 ) $ 2,230.6
Capital spending (excluding business combinations) $ 14.9   $ 10.2   $ 0.8   $ 5.0   $ 30.9
 
Delek US Holdings, Inc.
Segment Data
(In millions)
      Year Ended December 31, 2012
  Refining     Retail     Logistics    

Corporate, Other and

Eliminations

    Consolidated
Net sales (excluding intercompany fees and sales) $ 6,070.8 $ 1,877.8 $ 775.9 $ 2.2 $ 8,726.7
Intercompany fees and sales 170.1 42.6 (212.7 )
Operating costs and expenses:
Cost of goods sold 5,441.1 1,704.6 757.9 (199.2 ) 7,704.4
Operating expenses 213.7   128.0   23.4   (1.8 ) 363.3  
Segment contribution margin $ 586.1   $ 45.2   $ 37.2   $ (9.5 ) $ 659.0
General and administrative expenses 103.5
Depreciation and amortization 82.5
Gain on sale of assets (0.1 )
Operating income $ 473.1  
Capital spending (excluding business combinations) $ 65.9   $ 29.1   $ 10.5   $ 26.5   $ 132.0  
 
 
Year Ended December 31, 2011
  Refining Retail Logistics

Corporate, Other and

Eliminations

Consolidated
Net sales (excluding intercompany fees and sales) $ 4,632.5 $ 1,859.4 $ 715.8 $ (9.5 ) $ 7,198.2
Intercompany fees and sales 83.4 22.3 (105.7 )
Operating costs and expenses:
Cost of goods sold 4,160.9 1,679.4 694.8 (105.2 ) 6,429.9
Operating expenses 175.4 132.6 12.9 320.9
Impairment of goodwill   2.2       2.2  
Segment contribution margin $ 379.6   $ 45.2   $ 30.4   $ (10.0 ) $ 445.2
General and administrative expenses 81.4
Depreciation and amortization 74.1
Loss on sale of assets 3.6  
Operating income $ 286.1  
Capital spending (excluding business combinations) $ 36.0   $ 36.5   $ 0.9   $ 7.6   $ 81.0  
         

Refining Segment

Three Months Ended

December 31,

Year Ended

December 31,

2012     2011 2012     2011
Tyler Refinery
Days operated in period 92 92 366 365
Total sales volume (average barrels per day) (1) 67,617 63,211 61,412 60,395
Products manufactured (average barrels per day):
Gasoline 38,533 35,148 33,045 32,407
Diesel/Jet 22,913 22,997 21,883 22,521
Petrochemicals, LPG, NGLs 1,810 2,011 2,268 2,205
Other   2,018   2,880   1,989   2,564
Total production   65,274   63,036   59,185   59,697
Throughput (average barrels per day):
Crude oil 59,941 56,804 56,426 56,028
Other feedstocks   6,640   6,918   3,450   4,492
Total throughput   66,581   63,722   59,876   60,520
Per barrel of sales:
Tyler refining margin $ 19.57 $ 11.88 $ 20.39 $ 18.02
Direct operating expenses $ 4.66 $ 4.18 $ 5.02 $ 4.82
 

Three Months Ended

December 31,

Year Ended

December 31,

2012 2011 2012 2011
 
El Dorado Refinery
Days operated in period 92 92 366 247
Total sales volume (average barrels per day) (2) 70,133 75,694 73,709 76,153
Products manufactured (average barrels per day) (2):
Gasoline 38,368 36,044 33,411 33,231
Diesel 25,172 27,695 27,163 26,726
Petrochemicals, LPG, NGLs 1,377 1,542 1,318 1,399
Asphalt 7,388 13,646 6,897 14,820
Other   844   3,340   2,583   3,267
Total production   73,149   82,267   71,372   79,443
Throughput (average barrels per day):
Crude oil 63,199 76,344 65,375 73,796
Other feedstocks   11,566   6,124   7,797   6,258
Total throughput   74,765   82,468   73,172   80,054
Per barrel of sales:
El Dorado refining margin $ 12.80 $ 1.35 $ 12.56 $ 8.38
Direct operating expenses $ 4.30 $ 3.24 $ 3.73 $ 3.68
Pricing statistics (average for the period presented):
WTI — Cushing crude oil (per barrel) $ 88.18 $ 93.93 $ 94.19 $ 95.07
US Gulf Coast 5-3-2 crack spread (per barrel) $ 26.71 $ 20.34 $ 26.50 $ 22.98
US Gulf Coast Unleaded Gasoline (per gallon) $ 2.57 $ 2.58 $ 2.80 $ 2.74
Ultra low sulfur diesel (per gallon) $ 3.04 $ 2.96 $ 3.05 $ 2.97
Natural gas (per MMBTU) $ 3.39 $ 3.33 $ 2.75 $ 4.00
 

Logistics Segment

      Three Months Ended

December 31,

    Year Ended

December 31,

2012     2011 2012     2011
Throughputs (average bpd)  
 
Pipelines & Transportation:
Lion Pipeline System:
Crude pipelines (non-gathered) 43,164 59,840 46,027 57,442
Refined products pipelines to Enterprise Systems 47,382 48,383 45,220 45,337
SALA Gathering System 21,679 18,508 20,747 17,676
East Texas Crude Logistics System 57,761 56,067 55,068 55,341
 
Wholesale Marketing & Terminalling:
East Texas - Tyler Refinery sales volumes

61,317

57,963

57,574

57,047

West Texas marketing throughputs 17,316 15,337 16,523 15,493
West Texas marketing margin per barrel $ 2.67 $ 1.10 $ 2.56 $ 1.50
Terminalling throughputs 12,637 18,468 15,420 17,907
         

Retail Segment

Three Months Ended

December 31,

Year Ended

December 31,

2012     2011 2012     2011
Number of stores (end of period) 373 377 373 377
Average number of stores 371 383 374 394
Retail fuel sales (thousands of gallons) 101,062 103,497 404,558 409,446
Average retail gallons per average number of stores (in thousands) 272 270 1,082 1,039
Retail fuel margin ($ per gallon) $ 0.138 $ 0.146 $ 0.146 $ 0.162
Merchandise sales (in thousands) $ 90,389 $ 90,515 $ 378,166 $ 374,580
Merchandise sales per average number of stores (in thousands) $ 244 $ 236 $ 1,011 $ 951
Merchandise margin % 29.6 % 29.2 % 29.3 % 29.8 %
Credit expense (% of gross margin) 12.5 % 11.7 % 11.9 % 11.6 %
Operating expense/merchandise sales plus total gallons 16.1 % 15.4 % 15.7 % 16.3 %
Change in same-store fuel gallons sold (2.5 )% 4.3 % 0.4 % 1.1 %
Change in same-store merchandise sales 0.8 % 2.0 % 3.4 % 2.3 %
 
(1) Sales volume includes 4,786 bpd and 3,732 bpd sold to the marketing and retail segments during the three months and year ended December 31, 2012, respectively, and 3,751 bpd and 2,529 bpd during the three months and year ended December 31, 2011, respectively.
 
(2) The information included in the year ended December 31, 2011, represents the average for the period April 29, 2011 through December 31, 2011.




7 of 8

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,113.54 +61.81 0.36%
S&P 500 1,983.53 +9.90 0.50%
NASDAQ 4,456.0160 +31.3120 0.71%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs