Second quarter adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) totaled $24.9 million, vs. $31.7 million a year ago. Companywide gross profit totaled $107.8 million, down 4.2%, primarily reflecting lower fuel margins.
Companywide revenues for the second [image-nocss] quarter were $823.2 million, compared with $1.2 billion a year ago, which reflects a 43% drop in average retail and wholesale fuel prices vs. a year ago that reduced fuel revenues by $470 million. The lower fuel revenues were partly offset by the higher merchandise sales, and sales related an increase in gallons sold in both the retail and wholesale fuel segments versus the same period a year ago.
Susser reported quarterly net income of $2.2 million, or $0.13 per diluted share, vs. income of $6.7 million, or $0.39 per diluted share a year ago.
"We're pleased with the performance of our merchandise segment, which increased 4.6% on a same-store sales basis, despite the impact of the recession in recent months," said president and CEO Sam L. Susser. "We're seeing some customers trade down to lower-margin items, especially in the packaged beverage, beer and foodservice categories. As a result, we're experiencing stronger sales of our value-priced items, and our category managers are also working closely with our suppliers to create the most compelling values possible to our customers.
"Although fuel margins in the quarter were lower than the near-record levels of a year ago, they were just under the five-year average for the second quarter," he said.
During the second quarter of 2009, the company opened two new retail units, bringing the total number of stores in operation to 515 at the end of June. Susser opened two additional retail units in July, and three additional stores are under construction.
In its wholesale operations, Susser added seven new dealer sites and discontinued six, for a total of 372 dealer sites in operation at the end of the second quarter. The company also has entered into a definitive agreement to acquire 25 sites from a third party. Eleven of the 25 sites are currently supplied wholesale fuel by Susser Petroleum Co.Click here to read more about this purchase.
Retail merchandise sales growth was driven in part by a $0.62-per-pack increase in the federal excise tax on cigarettes effective April 1, as well as by strong performance in packaged drinks, beer, snacks and foodservice. Merchandise gross profit, net of shortages, totaled $66.5 million, which is up 3.2% from a year ago. Net merchandise margin was 33.3%, vs. 33.3% a year ago. The decline in margin is due in part to the cigarette tax increase as well as to a shift to lower margin items by consumers.
Retail-store fuel volumes increased to 177.9 million gallons for the second quarter, up 7.7% from a year ago. Average gallons sold per store increased 6.5% year-over-year to 352,300. Retail fuel revenues totaled $392.6 million, down 36.5%, as a result of a 41.0% drop in the average retail price of fuel. Retail fuel gross margins in the second quarter were 15.2 cents per gallon, or 11.5 cents after deducting credit-card expense, vs. 19.5 cents per gallon a year ago, or 15.2 cents after credit-card expense. Retail fuel gross profit was $27.0 million, vs. $32.2 million in the second quarter of last year.
Wholesale fuel volumes sold to Susser's 372 dealers and other third-party customers increased 1.2% to 125.8 million gallons in the second quarter. Wholesale fuel revenues declined 46.7% to $221.3 million as a result of a 47.3% drop in wholesale fuel prices year-over-year. Wholesale gross margin was 4.0 cents per gallon, vs. 6.0 cents per gallon a year ago, which reduced wholesale fuel gross profit to $5.0 million, down 32.3%.
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