Gross profit for the year ended Aug. 31, 2008 was $108.9 million, a decrease of $210.4 million from $319.3 million for the year ended Aug. 31, 2007. The gross profit of the company was impacted by the erosion of margins for gasoline, among other factors.
Earnings before interest, taxes, depreciation and amortization (EBITDA) before the Last In First Out (LIFO) inventory adjustment for the fiscal year ended Aug. 31, 2008, was $64.6 million, a decrease of $117.2 million from $181.8 million for the year ended Aug. 31, 2007. With the yearend LIFO inventory adjustment of $90.1 million for fiscal year ended Aug. 31, 2008, EBITDA for the year was $(25.5) compared to $191.7 million for the prior year. As a result of the LIFO adjustment for fiscal year 2008, the company expects to realize a tax refund in fiscal 2009 of approximately $35 million.
United Refining operates a 70,000-barrels-per-day (bpd) refinery in its hometown of Warren, Pa. In addition to its wholesale markets, the company operates 369 Kwik Fill/Red Apple and Country Fair retail gasoline and convenience stores located primarily in western New York and western Pennsylvania.
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