Mur­phy USA logs 2Q profit of $55.6M

Northwest Arkansas Democrat-Gazette - - BUSINESS & FARM - STEPHEN STEED

Mur­phy USA Inc., based in El Do­rado, on Wed­nes­day re­ported net in­come of $55.6 mil­lion, or $1.51 per di­luted share, for the sec­ond quar­ter of 2017.

The re­tail fuel and con­ve­nience store com­pany re­ported a $46.3 mil­lion profit, or $1.17 per share, for the same quar­ter a year ago.

Rev­enue was up 6 per­cent, to $3.2 bil­lion this quar­ter, com­pared with the same quar­ter a year ago.

“Our strong re­sults in the sec­ond quar­ter demon­strate the sub­stan­tial earn­ings power of our low-cost, high-vol­ume business model dur­ing pe­ri­ods of fa­vor­able re­tail fuel mar­gins,” An­drew Clyde, Mur­phy’s pres­i­dent and chief ex­ec­u­tive of­fi­cer, said in a state­ment. “Mean­while, our mer­chan­dise prof­its are ac­cel­er­at­ing while per-store op­er­at­ing costs con­tinue to de­cline, cre­at­ing fur­ther up­side op­er­at­ing lever­age while re­duc­ing the com­pany’s earn­ings volatil­ity dur­ing pe­ri­ods of chal­leng­ing fuel mar­gins.”

The com­pany said to­tal re­tail gal­lons sold in­creased by 2.5 per­cent in the quar­ter. The profit mar­gin per gal­lon was 18.1 cents, com­pared with 16.8 cents a year ago.

Sales of other mer­chan­dise in­creased by 5.5 per­cent, to $97.7 mil­lion, for a record mar­gin of 16.1 per­cent, the com­pany said.

The com­pany opened five stores dur­ing the quar­ter and re­opened on 12 sites where stores were razed and re­built. Con­struc­tion has be­gun on 26 other lo­ca­tions, the com­pany said.

A 2016 pro­gram au­tho­riz­ing up to $500 mil­lion in stock re­pur­chases con­tin­ued into the sec­ond quar­ter this year, with the buy­back of 726,000 com­mon shares, at an av­er­age of $67 each, for a to­tal of $49 mil­lion. That leaves $110 mil­lion in stock re­pur­chase author­ity.

Mur­phy USA shares fell 66 cents to close Wed­nes­day at $76.19 be­fore the earn­ings re­port was re­leased.

Mur­phy USA will host a con­fer­ence call to­day at 10 a.m. to dis­cuss sec­ond quar­ter 2017 re­sults. To ac­cess the call, dial 1 (877) 291-1367. The con­fer­ence num­ber is 45734993.

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