Retail merchandise sales increased $3 million, and although retail petroleum sales gallons increased 3.6 million gallons for the period, retail petroleum sales dollars decreased $103.3 million. Wholesale sales revenues decreased $128.6 million for the quarter ended Feb. 28, 2009, compared to the comparable quarter of 2008. Although wholesale sales volume decreased slightly, the decrease in sales revenue was primarily due to a 35.3% decrease in wholesale average sales prices for all wholesale products.
Operating income for the second quarter ended Feb. 28, 2009, increased $34.9 million from an operating loss of $30.7 million for the quarter ended Feb. 29, 2008, to operating income of $4.2 million for the quarter ended Feb. 28, 2009. Operating income for the six months ended Feb. 28, 2009, increased $38.4 million from a loss of $19.1 million for the six months ended Feb. 29, 2008, to operating income of $19.3 for the six months ended Feb. 28, 2009.
Net loss for the second quarter ended Feb. 28, 2009, decreased $19.8 million from a net loss of $22.9 million for the quarter ended Feb. 29, 2008, to net loss of $3.1 million for the quarter ended Feb. 28, 2009. Net loss for the six months ended Feb. 28, 2009, decreased $19.8 from a net loss of $19.8 million for the six months ended Feb. 29, 2008, to net income of $12,000 for the six month ended Feb. 28, 2009.
Earnings before interest, taxes, depreciation and amortization (EBITDA) for the three months ended Feb. 28, 2009 increased $33.9 million to $9.7 million compared to a negative $24.2 million for the three months ended Feb. 29, 2008. EBITDA increased $35 million for the six months ended Feb. 28, 2009, to $30.6 million from a negative $4.4 million for the six months ended Feb. 29, 2008.
Effective for the fiscal reporting period ended Feb. 28, 2009, the company is changing its method of accounting for inventories during interim periods from adjusting the inventory LIFO reserve on an annual basis to adjusting the inventory LIFO reserve on a quarterly basis. Accordingly, the company has reflected the change in accounting in the current quarter and retrospectively applied this policy to its previously issued financial statements for the three months ended Nov. 30, 2008 and 2007; and for the three- and six-month periods ended Feb. 29, 2008. The company believes this change in accounting method better reflects interim results consistent with the annual LIFO calculation. This change is a noncash accounting adjustment, does not impact cash flows and does not impact annual financial statements.
United Refining operates a 70,000-barrels-per-day refinery in Warren, Pa. In addition to its wholesale markets, the company also 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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