First-quarter Adjusted EBITDA totaled $19.3 million, up 16.1% from a year ago. Gross profit increased by 6.1% to $97.2 million, reflecting the positive impact of new stores constructed or acquired during 2008 and 2009, along [image-nocss] with higher same-store merchandise sales and improved cost efficiencies and synergies realized from the addition of the Town & Country stores.
Companywide revenues for the first quarter were $680.7 million, compared with $1 billion a year ago, which is due to a $1.27-per-gallon drop in fuel prices year-over-year that reduced total fuel revenues by $333 million. Although fuel revenues were lower due to declining fuel prices, gross profit from retail fuel sales was 4.7% higher, and retail fuel margins after subtracting credit card costs increased by one cent per gallon from a year ago. Lower fuel prices in the first quarter of 2009 also helped drive an increase in gallons sold in both the retail and wholesale fuel segments versus the same period a year ago.
The company had a net loss of $900,000, or (5) cents per diluted share, versus a net loss of $3.4 million, or (20) cents per diluted share a year ago. Because the business is seasonal, Susser said it historically experiences higher sales and profitability in the second and third quarters during the summer months and lower traffic during the winter months.
"Given the backdrop of a softening economy, we are very pleased with the robust same-store merchandise sales gains we realized in the latest quarter," said Sam L. Susser, president and CEO. "In the first quarter, we also saw a return to more normal fuel price levels, which may have spurred an increase in gasoline volumes versus a year ago, and our fuel margins were in line with our first quarter historic trends. As we look to the seasonally stronger spring quarter, we expect ongoing growth in merchandise sales, and we expect lower credit-card fees and utility expenses to be helpful as we cycle past unusually strong fuel margins in the second and third quarters of 2008."
During first-quarter 2009, the company opened one new retail unit, bringing the total number of stores in operation to 513 at the end of the quarter. Susser has opened one additional retail unit to date during the second quarter, and three additional stores are currently under construction. In its wholesale operations, Susser added one new dealer site and discontinued two, for a total of 371 dealer sites in operation at the end of the first quarter.
Retail merchandise sales growth was driven primarily by strong performance in packaged drinks, foodservice, beer and snacks. Merchandise gross profit, net of shortages, totaled $62.4 million, which is up 10.1% from a year ago. Net merchandise margin was 34.3%, versus 33.6% a year ago. The strong margin increase reflects the ongoing benefits of operating synergies that Susser is realizing from the integration of Town & Country and associated savings in merchandise and fuel procurement costs plus an increase in higher-margin foodservice sales at new stores opened during the last year.
Retail store fuel volumes increased to 179.4 million gallons for the first quarter, up 6% from a year ago. Average fuel gallons sold per store were 356,000, up 4.6% from the first quarter of last year. Retail fuel revenues totaled $322.1 million, down 38% due to a 41.5% decrease in the average retail price of fuel. Retail fuel gross margins in the first quarter were 11.8 cents per gallon, versus 12.0 cents per gallon a year ago. Lower credit-card fees, however, increased per-gallon retail fuel margins from 8.2 cents to 9.1 cents after deducting credit card expense. Retail fuel gross profit increased by 4.7% to $21.2 million.
Wholesale fuel volumes sold to Susser's 371 dealers and other third-party customers increased 7.3% to 122.5 million gallons in the first quarter. Wholesale fuel revenues declined to $167.3 million from $302.6 million a year ago as a result of a 48.5% reduction in wholesale fuel prices year over year. Gross margin was 3.5 cents per gallon, versus 4.9 cents per gallon a year earlier, which reduced wholesale fuel gross profit by 23.8% to $4.3 million.
Corpus Christi, Texas-based Susser Holdings is a third-generation, family-led business that operates more than 510 convenience stores in Texas, New Mexico and Oklahoma under the Stripes and Town & Country banners. Restaurant service is available in more than 290 of its stores, primarily under the proprietary Laredo Taco Co. and Country Cookin' brands. The company also supplies branded motor fuel to approximately 370 independent dealers through its wholesale fuel division.
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