CORPUS CHRISTI, Texas -- Susser Holdings Corp. yesterday reported that same-store merchandise sales for the second quarter of 2010 increased by 3.1%, compared with growth of 2.5% in the first quarter of 2010 and 4.6% in the second quarter of 2009. Retail merchandise margin increased to 33.9% vs. 32.7% in the prior quarter and 33.3% a year ago. Retail fuel margins increased to 24.8 cents per gallon vs. 11.1 cents in the first quarter and 15.2 cents a year ago.
Adjusted EBITDA for the three months ended July 4 totaled $44.7 million, compared with $24.9 million a year ago, [image-nocss] up 80.1%, which reflects significantly higher fuel margins, increased fuel sales volumes, improved merchandise sales and margins and successful expense control.
Companywide gross profit was $133.9 million, an increase of 24.2%. Total revenues increased 23.7% from a year ago to $1.0 billion, reflecting a 30% increase in combined retail and wholesale fuel revenue and a 4.2% increase in total merchandise sales.
The company earned a record $13.8 million net income, or $0.81 cents per diluted share, excluding the effect of after-tax charges totaling $15.7 million, or $0.93 cents per diluted share, related to the refinancing and early retirement of debt in the second quarter. On a reported basis, the company had a net loss of $1.9 million, or $0.11 per diluted share, vs. net income of $2.2 million, or $0.13 cents per diluted share a year ago.
"During the second quarter, we grew same store sales, widened merchandise and fuel margins, and reduced controllable expenses and employee turnover, which led to record adjusted EBITDA and net income excluding one-time refinancing charges," said Sam L. Susser, president and chief executive officer. "Results for both merchandise and fuel were particularly strong in our West Texas markets.
"We are very pleased with the significant strides we made during the quarter in managing our labor, and as a result, personnel expense declined to 17.7% of our merchandise and foodservice revenue in the second quarter, vs. 18.8% just one quarter ago and 18.4% in the second quarter last year. We are continuing to focus on expense control throughout the company, and to leverage our purchasing power across the regions to reduce our cost of sales.
"Although the Texas economy continues to be challenged by the lingering effects of a national recession, our results suggest that our long-term investments in technology, superior real estate and training of our team members is paying off, and this past quarter's performance was tremendous. I want to say thanks to our team for the significant improvements over the past six months," Susser said.
The company added one new large-format retail store during the second quarter and sold its seven Village Market grocery stores, bringing the total number of retail stores in operation as of July 4 to 521. One additional retail store has been opened to date in the third quarter, and six more stores are currently under construction, including one that is scheduled to open this month in Lubbock.
For more on Susser Holdings' growth strategy, see related story elsewhere in this issue of CSP Daily News.
In its wholesale operations, Susser added three new dealer sites and discontinued eight, for a total of 387 units in operation at the end of the second quarter.
During the second quarter, the company entered into sale-leaseback transactions totaling $11.1 million for five retail stores.
Same-store merchandise sales increased by 3.1%, compared with an increase of 4.6% in the second quarter of 2009. Merchandise gross profit, net of shortages, totaled $70.7 million, which was up 6.3% vs. the second quarter of last year. Net merchandise margin was 33.9%, compared with 33.3% a year ago. Total company merchandise sales were $208.3 million, an increase of 4.2% vs. the second quarter of last year. Average merchandise sales per store were $398,500 for the quarter, compared to $389,000 in the second quarter of 2009.
Retail store fuel volumes increased 4.1% from a year ago to 185.2 million gallons. Average gallons sold per store increased 1.8% to 358,400. Retail fuel revenues totaled $511.6 million, up 30.3%, as a result of a 55-cent-a-gallon increase in motor fuel prices at the pump and the 4.1% increase in volumes sold.
Retail fuel gross margins in the second quarter were 24.8 cents per gallon, or 20.2 cents after deducting credit-card expense, compared with 15.2 cents per gallon a year ago, or 11.5 cents after deducting credit card expense. Retail fuel gross profit was $45.9 million, up 69.9 percent from the second quarter of 2009.
Members help make our journalism possible. Become a CSP member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.