-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, OZp0f9kW9BTIm4JryLHgGHuZz5jY+snvGdlMGgIXafUGV6r1ZxjbVfsl2px9+GSY rrlWEMcpfBnbkPyTiNe6Cw== 0000856465-03-000004.txt : 20030506 0000856465-03-000004.hdr.sgml : 20030506 20030505200057 ACCESSION NUMBER: 0000856465-03-000004 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20030506 ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20030506 FILER: COMPANY DATA: COMPANY CONFORMED NAME: GIANT INDUSTRIES INC CENTRAL INDEX KEY: 0000856465 STANDARD INDUSTRIAL CLASSIFICATION: PETROLEUM REFINING [2911] IRS NUMBER: 860642718 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-10398 FILM NUMBER: 03682941 BUSINESS ADDRESS: STREET 1: 23733 N SCOTTSDALE RD CITY: SCOTTSDALE STATE: AZ ZIP: 85255 BUSINESS PHONE: 4805858888 MAIL ADDRESS: STREET 1: 23733 N SCOTTSDALE RD CITY: SCOTTSDALE STATE: AZ ZIP: 85255 8-K 1 firstqtr-earnings.txt GIANT INDUSTRIES, INC. 8-K PRESS RELEASE ======================================================================== SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ---------------------------------- Form 8-K ---------------------------------- CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported): May 6, 2003 GIANT INDUSTRIES, INC. (Exact name of registrant as specified in its charter) Delaware 1-10398 86-0642718 (State of jurisdiction of (Commission File) (IRS Employer incorporation) Number) Identification No. 23733 North Scottsdale Road Scottsdale, Arizona 85255 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code (480) 585-8888 ======================================================================== ITEM 9. REGULATION FD DISCLOSURE The following information, including the press release attached as Exhibit 99, is being furnished under "Item 12. Results of Operations and Financial Condition" in accordance with SEC Release No. 33-8216: On May 6, 2003, the Registrant issued a press release containing earnings information for its first quarter of 2003 ended March 31, 2003. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. By: /s/ GARY R. DALKE ------------------------------------------- Gary R. Dalke Vice President and Chief Accounting Officer (Principal Accounting Officer) Date: May 6, 2003 INDEX TO EXHIBITS Exhibit Number Description - ------- --------------------------------------------- 99 Press Release, dated as of May 6, 2003 EX-99 3 firstqtr-exh99.txt GIANT INDUSTRIES, INC. 8-K PRESS RELEASE EXHIBIT 99 EXHIBIT 99 GIANT INDUSTRIES, INC. NEWS RELEASE Contact: Mark B. Cox Vice President, Treasurer, & Chief Financial Officer Giant Industries, Inc. (480) 585-8888 FOR IMMEDIATE RELEASE May 6, 2003 GIANT INDUSTRIES, INC. ANNOUNCES IMPROVED FIRST QUARTER 2003 EARNINGS Scottsdale, Arizona, May 6, 2003 - Giant Industries, Inc. [NYSE: GI] today reported net earnings for the first quarter ended March 31, 2003 of $1.6 million or $0.19 per share. This compares to net earnings for the first quarter of 2002 of $123,000 or $0.01 per share. Earnings from continuing operations before recording the cumulative effect of a new accounting standard related to asset retirement obligations were $2.3 million, or $0.26 per share, for the first quarter ended March 31, 2003. Fred Holliger, Giant's Chief Executive Officer, said, "We are pleased to report our best first quarter operating earnings in the last ten years, which were achieved in a period of extreme volatility for our refining business unit. Refining margins at our Four Corners refineries improved from the prior year level and Yorktown posted the strongest margins that we've seen since we acquired the facility in May 2002. Our retail operations also had a significant improvement in operating earnings of $1.7 million in the quarter compared to the first quarter of 2002. The earnings improvement was primarily due to improved gasoline and merchandise margins, continued tight control on operating costs and the elimination of non- strategic stores. Phoenix Fuel's operating earnings also improved in the first quarter as a result of higher wholesale fuel volumes." "Net cash flow from operations was approximately $33 million in the first quarter. In addition, we also completed the sale of approximately $2.6 million of non-strategic assets in the quarter bringing our total asset sales to approximately $22 million since I announced our plan to divest non-strategic assets in May of last year. We reduced our debt by approximately $13.3 million during the quarter, as we retired approximately $3.3 million of our term loan and reduced the outstanding balance on our working capital line from $25 million to $15 million. We also increased our cash position at quarter-end to $23.4 million up from $10.2 million at year-end." "We continue to pursue the sale of approximately $20 - $30 million of non- strategic assets to further our goal of continued debt reduction. While the weak economy and tight financial markets have slowed, or in a few specific cases, resulted in potential transactions being cancelled, we are making progress and remain optimistic that we will reach our goal before year- end." Holliger continued, "We believe that the refining fundamentals continue to look attractive throughout the next several months. As we head into the summer driving season, gasoline inventories are low compared to where they are normally this time of year. Distillate inventories are also near historic lows for this time of year. In our retail area, fuel margins remain strong and fuel volumes are increasing as we approach what is normally retail's peak season. Phoenix Fuel has been seeing good growth in both wholesale and cardlock volumes." On April 28, 2003, a large transformer failure disrupted operations at the electric generation plant that supplies Giant's Yorktown refinery. As a result, the refinery suffered a complete loss of power and shutdown of all processing units. Processing and auxiliary units are being repaired and brought on line. The refinery is expected to return to full capacity of approximately 62,000 barrels per day in the next few days. Although the impact is not believed to be material to the Company's overall operations, the Company anticipates that the refinery outage will adversely impact earnings in the second quarter. Giant's senior management will hold a conference call at 2:00 p.m. EDT (11:00 a.m. MDT) on May 6, 2003 to discuss this earnings release and provide an update on company operations. The conference call will be broadcast live on the company's website at www.giant.com. Giant Industries, Inc., headquartered in Scottsdale, Arizona, is a refiner and marketer of petroleum products. Giant owns and operates one Virginia and two New Mexico crude oil refineries, a crude oil gathering pipeline system based in Farmington, New Mexico, which services the New Mexico refineries, finished products distribution terminals in Albuquerque, New Mexico and Flagstaff, Arizona, a fleet of crude oil and finished product truck transports, a Travel Center on I-40 east of Gallup, and a chain of retail service station/convenience stores in New Mexico, Colorado, and Arizona. Giant is also the parent Company of Phoenix Fuel Co., Inc., an Arizona wholesale petroleum products distributor. For more information, please visit Giant's website at www.giant.com. This press release contains forward-looking statements that involve known and unknown risks and uncertainties. Forward-looking statements are identified by words or phrases such as "believes," "expects," "anticipates," "estimates," "should," "could," "plans," "intends," "will," variations of such words and phrases, and other similar expressions. While these forward-looking statements are made in good faith, and reflect the Company's current judgment regarding such matters, actual results could vary materially from the forward-looking statements. Important factors that could cause actual results to differ from forward-looking statements include, but are not limited to the: inability to attain expected debt reductions, continuation of the recent improvement in refining margins, continuation of the improvement experienced in Yorktown refinery operations, issues arising from the power outage at the Yorktown refinery, the ability to complete targeted, non-strategic asset sales, and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission. All subsequent written and oral forward-looking statements attributable to the Company, or persons acting on behalf of the Company, are expressly qualified in their entirety by the foregoing. Forward-looking statements made by the Company represent its judgment on the dates such statements are made. The Company assumes no obligation to update any forward-looking statements to reflect new or changed events or circumstance.
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited) (In thousands except shares and per share data) Three Months Ended March 31, - -------------------------------------------------------------------------------------- 2003 2002 - -------------------------------------------------------------------------------------- Net revenues $ 490,524 $ 186,436 Cost of products sold 418,208 141,311 - -------------------------------------------------------------------------------------- Gross margin 72,316 45,125 Operating expenses 40,377 24,675 Depreciation and amortization 9,309 8,218 Selling, general and administrative expenses 7,024 5,425 Net loss on disposal/write-down of assets 410 4 - -------------------------------------------------------------------------------------- Operating income 15,196 6,803 Interest expense (10,159) (6,003) Amortization of financing costs (1,192) (208) Interest and investment income 24 64 - -------------------------------------------------------------------------------------- Earnings from continuing operations before income taxes 3,869 656 Provision for income taxes 1,603 265 - -------------------------------------------------------------------------------------- Earnings from continuing operations before cumulative effect of change in accounting principle 2,266 391 Discontinued operations, net of income tax provision (benefit) of $43 and $(179) 64 (268) Cumulative effect of change in accounting principle net of income tax benefit of $469 (704) - - -------------------------------------------------------------------------------------- Net earnings $ 1,626 $ 123 ====================================================================================== Net earnings (loss) per common share: Basic Continuing operations $ 0.26 $ 0.04 Discontinued operations 0.01 (0.03) Cumulative effect of change in accounting principle (0.08) - - -------------------------------------------------------------------------------------- $ 0.19 $ 0.01 ====================================================================================== Assuming dilution Continuing operations $ 0.26 $ 0.04 Discontinued operations 0.01 (0.03) Cumulative effect of change in accounting principle (0.08) - - -------------------------------------------------------------------------------------- $ 0.19 $ 0.01 ====================================================================================== Weighted average number of shares outstanding: Basic 8,571,779 8,553,879 Assuming dilution 8,614,640 8,571,722 ======================================================================================
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (In thousands) - -------------------------------------------------------------------------------------- March 31, 2003 December 31, 2002 - -------------------------------------------------------------------------------------- Assets Current assets $ 219,939 $ 211,919 - -------------------------------------------------------------------------------------- Property, plant and equipment 660,548 649,861 Less accumulated depreciation and amortization (235,409) (225,629) - -------------------------------------------------------------------------------------- 425,139 424,232 Other assets 62,121 66,135 - -------------------------------------------------------------------------------------- Total Assets $ 707,199 $ 702,286 ====================================================================================== Liabilities and Stockholders' Equity Current liabilities $ 132,316 $ 120,351 Long-term debt, net of current portion 386,111 398,069 Deferred income taxes 38,553 37,612 Other liabilities 21,276 18,937 Stockholders' equity 128,943 127,317 - -------------------------------------------------------------------------------------- Total Liabilities and Stockholders' Equity $ 707,199 $ 702,286 ====================================================================================== Certain reclassifications have been made to the year 2002 financial statements to conform to classifications used in 2003. These reclassifications had no effect on reported earnings or stockholders' equity.
OPERATING STATISTICS 1 Qtr. 2003 4 Qtr. 2002 3 Qtr. 2002 2 Qtr. 2002 1 Qtr. 2002 - --------------------------------------------------------------------------------------------------------- Refining - -------- Four Corners Operations: Crude Oil/NGL Throughput (BPD) 31,146 32,389 30,902 33,144 33,785 Refinery Sourced Sales Barrels (BPD) 31,534 30,006 32,408 34,060 31,161 Avg. Crude Oil Costs ($/Bbl) $ 31.21 $ 26.68 $ 25.96 $ 23.48 $ 18.90 Refining Margins ($/Bbl) $ 8.32 $ 7.64 $ 6.04 $ 6.41 $ 7.36 Retail Fuel Volumes Sold as a % of Four Corners Refinery's Sourced Sales Barrels 36% 39% 41% 38% 41% Yorktown Operations:(1) Crude Oil/NGL Throughput (BPD) 56,256 61,629 54,677 53,563 -- Refinery Sourced Sales Barrels (BPD) 59,389 60,911 58,803 54,610 -- Avg. Crude Oil Costs ($/Bbl) $ 32.85 $ 27.50 $ 26.57 $ 26.77 -- Refining Margins ($/Bbl) $ 4.25 $ 3.21 $ 1.71 $ 1.68 -- Retail(2) - ------ Fuel Gallons Sold (000's) 42,870 45,053 50,845 49,727 48,237 Fuel Margins ($/gal) $ 0.14 $ 0.15 $ 0.14 $ 0.16 $ 0.13 Merchandise Sales ($ in 000's) $ 30,934 $ 32,981 $ 38,069 $ 37,984 $ 32,837 Merchandise Margins 31% 27% 28% 28% 28% Number of Operating Units at End of Period 135 136 140 146 150 Phoenix Fuel - ------------ Fuel Gallons Sold (000's) 103,037 99,012 94,703 90,524 92,471 Fuel Margins ($/gal) $ 0.05 $ 0.06 $ 0.05 $ 0.05 $ 0.05 Lubricant Sales ($ in 000's) $ 5,615 $ 5,922 $ 5,234 $ 5,002 $ 5,387 Lubricant Margins 16% 17% 16% 18% 17% - --------------------------------------------------------------------------------------------------------- Operating Income (Loss) (in 000's) - ---------------------------------- Refining - Four Corners Operations $ 9,503 $ 7,600 $ 5,816 $ 8,356 $ 9,050 - Yorktown Operations 8,358 2,696 (5,994) (3,090) -- Retail(2) 1,033 413 1,639 1,886 (689) Phoenix Fuel 1,606 2,223 1,752 1,566 1,473 Corporate (4,924) (4,550) (4,725) (4,233) (3,474) Net gain (loss) on disposal/write-down of assets(2) (273) 1,996 4,961 (1,059) (4) - --------------------------------------------------------------------------------------------------------- Total(2) $ 15,303 $ 10,378 $ 3,449 $ 3,426 $ 6,356 ========================================================================================================= Capital Expenditures (in 000's)(3) - ---------------------------------- Refining - Four Corners Operations $ 341 $ 344 $ 547 $ 4,170 $ 890 - Yorktown Operations 4,446 2,418 900 304 -- Retail 254 123 449 136 308 Phoenix Fuel 205 185 87 57 216 Corporate 26 137 248 553 918 - --------------------------------------------------------------------------------------------------------- Total $ 5,272 $ 3,207 $ 2,231 $ 5,220 $ 2,332 ========================================================================================================= (1) The Yorktown Refinery was purchased on May 14, 2002. (2) Includes discontinued operations. (3) Excludes Yorktown Refinery acquisition contingent payments of $3,986,000 made in the first quarter of 2003 and expenditures made for the acquisition of the Yorktown Refinery in the first and second quarters of 2002.
Selected Financial Data March 31, 2003 December 31, 2002 - ------------------------------------------------------------------------------------------- Working Capital (In Millions) $ 87,623 $ 91,568 Current Ratio 1.66:1 1.76:1 Long-Term Debt As A Percent of Total Capital 75.0% 75.8% Net Debt As A Percent of Total Capital 73.8% 75.3% Book Value Per Share $ 15.04 $ 14.85 Net cash provided by operating activities(4) $ 33,286 $ 38,068 (4) Net cash provided by operating activities for March 31, 2003 and December 31, 2002 is for three and twelve months, respectively.
Share Price Data and Dividends (NYSE: GI) High Low Close Dividends - ---------------------------------------------------------------- 2003 1st Quarter $ 5.50 $ 2.85 $ 4.89 $ -- 2002 4th Quarter $ 3.85 $ 1.86 $ 2.95 $ -- 2002 3rd Quarter $ 8.13 $ 3.15 $ 3.75 $ -- 2002 2nd Quarter $ 12.55 $ 7.50 $ 8.00 $ -- 2002 1st Quarter $ 10.39 $ 8.21 $ 10.30 $ --
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