Murphy USA (US:MUSA)2022-05-05 20:41Financial Performance - For Q1 2022, the company reported net income of $152.4 million, or $6.08 per diluted share, on revenue of $5.1 billion, compared to net income of $55.3 million, or $2.01 per diluted share, on revenue of $3.5 billion in Q1 2021[149]. - Total operating revenues for Q1 2022 were approximately $5.1 billion, a 44.7% increase from $3.5 billion in Q1 2021[166]. - Adjusted EBITDA for Q1 2022 was $277.0 million, compared to $154.8 million in Q1 2021, reflecting a significant increase[176]. - Net cash provided by operating activities increased to $339.2 million for the three months ended March 31, 2022, up from $229.8 million in the same period in 2021, reflecting a net income increase of $97.1 million[179]. Revenue Drivers - Revenues for Q1 2022 increased by $1.6 billion, or 44.7%, driven by higher fuel sales prices, increased retail fuel sales volumes, and the inclusion of QuickChek results for three months in 2022 compared to two months in 2021[150]. - Retail fuel sales prices increased by 44.9%, with a 7.8% increase in the number of gallons sold and a 7.1% increase in merchandise sales[166]. - Total merchandise sales increased by 7.1% to $892.0 million in Q1 2022 compared to $833.2 million in Q1 2021[169]. - Same store sales for merchandise grew by 5.6%, with tobacco products increasing by 7.8% and non-tobacco products by 3.4%[169]. Costs and Expenses - Total cost of sales for Q1 2022 increased by $1.4 billion, or 44.7%, primarily due to higher wholesale fuel prices and fuel sales volumes[151]. - Store and other operating expenses rose by $45.6 million, or 25.7%, mainly due to increased payment fees and higher employee-related costs[152]. - Store and other operating expenses increased by $45.6 million in Q1 2022, primarily due to the inclusion of QuickChek for an additional month[170]. Capital Expenditures and Investments - The company anticipates total capital expenditures for the full year 2022 to range from approximately $350 million to $400 million, primarily funded through operating cash flow[144]. - Capital expenditures for the full year 2022 are expected to range from approximately $350 million to $400 million, including $300 million to $325 million for retail growth[204]. - Total capital spending for the three months ended March 31, 2022, was $69.1 million, compared to $55.9 million for the same period in 2021, representing a 23% increase[204]. - The company invested $52.0 million in new Company stores during the three months ended March 31, 2022, up from $48.3 million in the same period in 2021[204]. Debt and Financing - The company has $1.3 billion of Senior Notes and a $397 million term loan outstanding, with additional capacity under a $350 million cash flow revolving credit facility[143]. - Total long-term debt as of March 31, 2022, was $1,797.4 million, slightly down from $1,800.1 million at December 31, 2021[185]. - The company’s total leverage ratio was 1.90 to 1.0 as of March 31, 2022, allowing for unrestricted payments under the credit agreement[196]. - The company has a remaining balance of approximately $868.2 million under the $1 billion share repurchase authorization from December 2021, valid until December 31, 2026[184]. Shareholder Returns - The company paid a dividend of $0.29 per common share in March 2022, totaling $7.2 million, compared to $0.25 per share and $6.8 million in March 2021[182]. - A total of 836,953 shares were repurchased for $151.8 million during the three months ended March 31, 2022, completing a $500 million share repurchase program[184]. Risk Management - The company has exposure to interest rate risks related to a floating rate term loan of $397 million, which is tied to LIBOR interest rates[211]. - The company currently has an interest rate swap that hedges exposure to one-month LIBOR for $90.5 million of its outstanding term loan amount[212]. - The company is subject to risks and uncertainties related to M&A activity, anticipated store openings, and supply chain disruptions[207]. - The company has made limited use of derivative instruments to manage risks related to commodity prices and interest rates[209].