Murphy USA (MUSA) - 2024 Q4 - Annual Results

Financial Performance - Net income for Q4 2024 was $142.5 million, or $6.96 per diluted share, compared to $150.0 million, or $7.00 per diluted share in Q4 2023[4] - For the full year 2024, net income was $502.5 million, or $24.11 per diluted share, down from $556.8 million, or $25.49 per diluted share in 2023[4] - Net income for Q4 2024 was $162.9 million, compared to $166.1 million in Q4 2023, reflecting a decline of 1.9%[28] - Net income for Q4 2024 was $142.5 million, a decrease of 5% from $150.0 million in Q4 2023[36] Revenue and Sales - Total operating revenues for Q4 2024 were $4.71 billion, compared to $5.07 billion in Q4 2023, reflecting a decrease in petroleum product sales[26] - Total operating revenues for Q4 2024 were $4,710.0 million, a decrease of 7.1% from $5,068.6 million in Q4 2023[28] - Total retail gallons decreased by 1.0% in Q4 2024, with same store sales (SSS) volumes declining by 2.8% compared to Q4 2023[4] - Same store sales for merchandise increased by 1.5% in Q4 2024 compared to the prior year, while nicotine sales rose by 1.6%[29] Expenses and Costs - Total store and other operating expenses increased by $12.3 million in Q4 2024 compared to Q4 2023, mainly due to higher employee-related expenses[11] - Merchandise cost of goods sold for Q4 2024 was $842.5 million, slightly up from $820.8 million in Q4 2023[28] - Depreciation and amortization expenses for Q4 2024 were $67.2 million, up from $57.0 million in Q4 2023[39] - The company incurred impairment of properties amounting to $8.2 million in Q4 2024, with no such charges in Q4 2023[39] Cash Flow and Investments - Total cash provided by operating activities for the twelve months ended December 31, 2024, was $847.6 million, compared to $784.0 million in 2023, reflecting an increase of 8%[36] - The company reported a net cash outflow from investing activities of $445.8 million for the twelve months ended December 31, 2024, compared to $323.6 million in 2023[36] - The net cash required by financing activities for the twelve months ended December 31, 2024, was $472.6 million, compared to $403.1 million in 2023[36] Shareholder Returns - The quarterly cash dividend paid on December 2, 2024, was $0.48 per share, representing a 6.7% increase from the previous quarter, totaling $9.7 million in cash payments[17] - The company repurchased approximately 239.7 thousand shares for $126.2 million at an average price of $526.61 per share in Q4 2024[4] - The company purchased treasury stock amounting to $128.0 million in Q4 2024, compared to $160.5 million in Q4 2023[36] Growth and Expansion - The company opened 32 new-to-industry (NTI) stores and completed 47 raze and rebuilds in 2024, with a focus on long-term growth opportunities[3] - For 2024, actual results included 32 new stores opened, exceeding the guidance range of 30-35, and 47 raze-and-rebuilds, above the guidance of more than 40[18] - The company expects 2025 guidance to include up to 50 new stores and up to 30 raze-and-rebuilds, indicating a commitment to higher growth levels[18] Future Projections - The company anticipates net income for 2025 to be between $474 million and $551 million, translating to expected Adjusted EBITDA between $1 billion and $1.12 billion[19] - The effective tax rate for 2025 is expected to be in the range of 23% to 25%[22] - Merchandise contribution for 2024 was $834 million, within the guidance range of $830 to $840 million, with expectations for 2025 to be between $855 million and $875 million[18] - Capital expenditures for 2024 were $503 million, within the guidance range of $500 to $525 million, with a projected range of $450 to $500 million for 2025[18] Assets and Liabilities - Total current assets decreased to $748.1 million in 2024 from $826.5 million in 2023, a decline of 9.5%[34] - Total assets increased to $4,541.6 million in 2024, up from $4,340.1 million in 2023, representing a growth of 4.6%[34] - Total liabilities rose to $3,701.5 million in 2024, compared to $3,511.2 million in 2023, an increase of 5.4%[34] - The store count at the end of the period remained stable at 1,757 stores, unchanged from the previous year[28] Margins - Merchandise contribution dollars for Q4 2024 increased by 5.6% to $208.8 million, with average unit margins of 19.9%[10] - Total fuel contribution dollars for Q4 2024 decreased by 1.0% to $389.1 million, primarily due to lower retail volumes sold[7] - Retail fuel margins for the full year 2024 were 28.1 cpg, a 1.8% increase compared to the prior year[8] - The company reported a merchandise margin of 2.4% for Q4 2024, an improvement from 2.7% in the same quarter last year[29]