CORPUS CHRISTI, Texas -- Susser Holdings Corp. has reported that its first-quarter 2007 merchandise sales increased 8.8% to $93.4 million, versus $85.8 million a year ago.
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) increased 18.8% to $7.8 million, versus $6.6 million in the prior year's first quarter.
Total revenues increased to $528.6 million from $523.3 million in the same quarter of 2006. Total gross profit increased 7.6% to $52.4 million, compared with $48.7 million in the prior year's [image-nocss] first quarter, primarily reflecting increased merchandise sales and improved retail fuel margins.
The company reported a net loss in the quarter of $2.4 million, or 14 cents per diluted share, compared with a net loss of $3.9 million, or 43 cents per diluted share, in first-quarter 2006. The improvement in year-over-year net results is due to higher gross profit and lower interest expense.
"Despite the impact of unusual winter weather patterns that negatively impacted sales in our key markets, we recorded strong year-over-year growth in merchandise sales and merchandise gross profit during the first quarter," said Sam L. Susser, Corpus Christi, Texas-based Susser Holdings president and CEO. "We also benefited from stronger retail fuel margins.
He added, "With the winter behind us and our convenience store and fuel island re-branding projects now complete, we expect improved retail sales performance as we move into the seasonally stronger spring and summer quarters. Our organic growth program is on track, and we are actively seeking acquisition opportunities that will be accretive to earnings and offer strong synergies."
Merchandise sales from Susser's retail c-stores totaled $93.4 million during first-quarter 2007, an increase of 8.8% overall and 4.9% on a same-store basis. This growth was led by strong sales performance from the Laredo Taco Co. restaurants and increased sales of beer, packaged beverages and coffee and the impact of an increase in the cigarette excise tax in Texas. Total merchandise gross profit increased 6.5% to $30 million. Net merchandise margin was 32.1%down slightly from 32.8% a year agoprimarily reflecting the impact of the cigarette tax increase.
Retail c-store fuel volumes declined 1.4% to 101.8 million gallons for the quarter, reflecting the impact of unusual winter weather in key markets during January and February, and temporary disruptions relating to the conversion of the fuel brand. Average volumes sold per store for the quarter decreased 2.4% to 317,443 gallons. Retail fuel gross margins increased, however, to 11.9 cents per gallon, versus 9.2 cents per gallon in first-quarter 2006, producing a 27.6% increase in retail fuel gross profit to $12.1 million.
Wholesale fuel volumes sold to Susser's 371 dealers and other third-party customers increased 1.6% to 111.6 million gallons in the quarter. holesale fuel gross margin was 3.8 cents per gallon, versus 4.8 cents per gallon a year ago, and wholesale fuel gross profit decreased 18.3% to $4.3 million. The lower margins partly reflect a mix change resulting from the June 2006 sale of 25 unattended units, which produced higher margins than the average wholesale business.
Susser Holdings operates 325 convenience stores in Texas and Oklahoma under the Stripes banner and supplies branded motor fuel to more than 370 independent dealers through its wholesale fuel division. Susser owns and operates more than 150 Laredo Taco Co. restaurants inside the Stripes c-stores.
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