Retail fuel margins for the quarter were 22.8 cents per gallon, vs. 24.8 cents in the second quarter and 19.7 cents in the third quarter of 2009.
Adjusted EBITDA in the third [image-nocss] quarter totaled $37.2 million, compared with $33.1 million a year ago, an increase of 12.5%, which reflects higher margins and sales volumes for both fuel and merchandise. Companywide gross profit totaled $129.4 million, up 8.0%. Total revenues increased 9.6% vs. the third quarter of last year to $966.4 million, which reflects a 12.1% increase in combined retail and wholesale fuel revenues and a 2.9% increase in merchandise sales.
Net earnings totaled $9 million, or 52 cents per diluted share in the latest quarter, compared with net income of $6.5 million, or 38 cents per diluted share a year ago.
"We continued to see steady year-over-year growth in both merchandise and fuel volumes in the third quarter, and stronger margins across our retail and wholesale divisions drove improvements in gross profit and adjusted EBITDA," said Sam L. Susser, president and CEO, in a statement. "Strength in the energy sector continues to contribute to our same-store sales growth. Retail fuel margins were above our five-year average for the third quarter, and increased sales of diesel fuel suggests that overall commercial activity in our market areas is continuing its recovery."
He added, "Although most of our markets are stable or slowly recovering, our customers remain very value conscious, particularly in South Texas. We remain focused on competitive pricing and on expense control, even as we deliver the same level of quality and delicious food that Stripes and Laredo Taco Co. customers have come to expect."
Susser noted that the company added 39 dealer sites to which the company is now supplying motor fuel, and also acquired a big-box convenience store in Houston, as previously reported in CSP Daily News. The majority of these locations are branded with either the Chevron, Texaco or Mobil flags. The acquisition was closed on October 11 and funded with cash. The terms were not disclosed, as the transaction value was not material.
The company opened four new large-format retail stores during the third quarter, including the one acquired, bringing the total number in operation as of October 3 to 525. Three additional stores have already been opened in the fourth quarter, and one smaller store was closed. Five more stores are currently under construction, four of which are expected to open by the end of 2010. For more information on Susser's growth plans, see related story in this issue of
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