Delek US(US:DK)2020-05-08 21:23Financial Performance - Net revenues for the three months ended March 31, 2020, were $1,821.2 million, down from $2,199.9 million in the same period of 2019, a decrease of about 17.2%[16] - The company reported a net loss of $314.4 million for the three months ended March 31, 2020, compared to a net income of $149.3 million for the same period in 2019[16] - Basic and diluted loss per share for the three months ended March 31, 2020, was $(4.28), compared to earnings of $1.92 per share in the prior year[16] - Operating loss for the three months ended March 31, 2020, was $(361.5) million, compared to operating income of $222.4 million in the prior year[16] - The company reported total non-operating expenses of $28.6 million for the three months ended March 31, 2020, compared to $22.2 million in the same period of 2019[16] - For the three months ended March 31, 2020, Delek US Holdings reported a net loss of $307.0 million compared to a net income of $154.4 million for the same period in 2019[30] Assets and Liabilities - Total current assets decreased to $1,956.1 million as of March 31, 2020, from $2,963.3 million at December 31, 2019, representing a decline of approximately 33.7%[11] - Total liabilities decreased to $4,603.5 million as of March 31, 2020, from $5,181.0 million at December 31, 2019, a reduction of approximately 11.1%[11] - Stockholders' equity decreased to $1,489.9 million as of March 31, 2020, from $1,835.3 million at December 31, 2019, reflecting a decline of about 18.8%[11] - Total assets as of March 31, 2020, were $6,093.4 million, with refining assets at $5,949.5 million, logistics at $946.3 million, and retail at $312.1 million[73] Cash Flow and Working Capital - Cash flows from operating activities were $1,230.2 million for Q1 2020, a significant increase from $437.8 million in Q1 2019[33] - The company experienced a decrease in cash and cash equivalents, ending the period with $784.9 million, down from $989.7 million at the beginning of the period[35] - Accounts receivable increased by $351.6 million, while accounts payable decreased by $546.3 million, indicating significant changes in working capital[30] Dividends and Stock Repurchase - The company declared dividends of $0.31 per common share for the three months ended March 31, 2020, compared to $0.27 per share in the same period of 2019[16] - The company declared a dividend of $0.31 per share on February 24, 2020, with a payment date of March 24, 2020[210] - During the three months ended March 31, 2020, the company repurchased 58,713 shares of common stock for a total of $1.9 million, compared to 1,291,644 shares for $46.2 million in the same period of 2019[210] Segment Performance - The refining segment reported net revenues of $1,569.3 million for the three months ended March 31, 2020, a decrease from $1,907.4 million in the same period of 2019[70] - The logistics segment generated revenues of $56.8 million, while the retail segment reported $178.6 million in net revenues for the same period[70] - The refining segment's contribution margin was $(290.4) million, compared to a positive contribution margin of $301.9 million in the prior year[70] Capital Expenditures - Capital spending for the refining segment was $168.1 million, while total capital spending across all segments amounted to $190.2 million for the first quarter of 2020[70] COVID-19 Impact - The impact of the COVID-19 pandemic has led to significant economic disruption, affecting demand for crude oil and related products[43] - The company has recognized uncertainties related to the COVID-19 pandemic and OPEC production disputes, which could impact future financial results[44] Debt and Credit Facilities - The company had a long-term debt of $940.0 million as of March 31, 2020, compared to $833.1 million at the end of the previous year[86] - Total outstanding borrowings as of March 31, 2020, were $2,216.9 million, an increase from $2,067.1 million as of December 31, 2019[118] - The Revolving Credit Facility had a principal amount outstanding of $100.0 million with a weighted average borrowing rate of 3.50% as of March 31, 2020[133] - The Term Loan Credit Facility had a principal amount outstanding of $1,082.8 million with an effective interest rate of 3.55% as of March 31, 2020[134] Environmental and Legal Liabilities - As of March 31, 2020, the company recorded an environmental liability of approximately $144.5 million related to remediation costs at refineries and terminals[189] - The court assessed damages against one of the company's subsidiaries totaling $6.7 million related to an easement dispute, included in accrued expenses as of March 31, 2020[184] Derivatives and Risk Management - The total gross fair value of derivatives as of March 31, 2020, was $2,593.4 million in assets and $(2,547.7) million in liabilities[166] - Total gains on commodity derivatives not designated as hedging instruments increased to $77.9 million for the three months ended March 31, 2020, compared to $17.5 million in the same period of 2019[169] - The company recorded a self-insurance accrual for workers' compensation claims up to a $4.0 million deductible on a per accident basis[185] Compensation and Equity-Based Awards - Compensation expense related to equity-based awards amounted to $5.8 million for the three months ended March 31, 2020, compared to $4.8 million for the same period in 2019[206] - Total unrecognized compensation cost related to non-vested share-based compensation arrangements was $47.8 million, expected to be recognized over a weighted-average period of 2.1 years[207]