-----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, NZZ88zYZ9CuAW9pycS3DMRl9SZzNLesMaFZew8wjCmlLvxrr4lYIrw3kdOM0T5rV daFrS0ZtUatYOGjCk6DMxQ== 0000856465-03-000009.txt : 20031110 0000856465-03-000009.hdr.sgml : 20031110 20031110163603 ACCESSION NUMBER: 0000856465-03-000009 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20031110 ITEM INFORMATION: FILED AS OF DATE: 20031110 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: 03988744 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 thirdqtrpressrelease.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): November 10, 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 12. RESULTS OF OPERATIONS AND FINANCIAL CONDITION On November 10, 2003, the Registrant issued a press release containing earnings information for the three and nine months ended September 30, 2003. A copy of the press release is attached hereto as Exhibit 99 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/ MARK B. COX ------------------------------------------- MARK B. COX Vice President and Chief Financial Officer (Principal Financial Officer) Date: November 10, 2003 INDEX TO EXHIBITS Exhibit Number Description - ------- --------------------------------------------- 99 Press Release, dated as of November 10, 2003 EX-99 3 exhibit99.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 November 10, 2003 GIANT INDUSTRIES, INC. ANNOUNCES RECORD THIRD QUARTER RESULTS Scottsdale, Arizona (November 10, 2003) -- Giant Industries, Inc. [NYSE: GI] today reported net earnings of $7.5 million, or $0.86 per share for the third quarter ended September 30, 2003. Net earnings in the third quarter of 2003 included a pre-tax write-down of assets that totaled $1.1 million. Net earnings were a loss of ($4.6 million), or ($0.53) per share in the third quarter of 2002. The Company reported net earnings of $9.6 million, or $1.10 per share, for the first nine months of 2003 compared to a net loss of ($8.7 million), or ($1.02) per share in 2002. Giant's Chairman and Chief Executive Officer, Fred Holliger commented, "Good performance from each of our strategic business units led to record third quarter earnings. Our refining operations had a strong quarter as higher gasoline crack spreads contributed to a significant improvement in refining margins versus the prior year levels. Refining margins at our Four Corners refineries increased from $6.04 in the third quarter of last year to $9.51 in the same quarter this year and refining margins at our Yorktown refinery increased from $1.71 to $4.61 for the same period. These margins, combined with an increase in volumes, contributed to a significant improvement in earnings. Refinings' operating earnings were $23.8 million in the third quarter of 2003 versus a breakeven level for the same period last year. These results were realized even though operations at our Yorktown refinery were scaled back and subsequently shut down for a period of time as Hurricane Isabel passed through the area. I would like to commend our Yorktown personnel for their efforts in securing and protecting our refinery. As a result of their efforts, our facility experienced very minimal damage." "Our retail operations also had good results in the quarter. Store operating profit from continuing operations increased to $5.1 million in the third quarter of 2003 versus $2.1 million for the same period last year. While a significant improvement in retail fuel margins was a major factor in the improved profitability, our program to divest of non-strategic, poor performing stores and continuing creative marketing in our stores also made strong contributions to the improved profitability." "In the quarter, Phoenix Fuel continued to achieve growth in both wholesale and cardlock fuel volumes that contributed to increased earnings versus the prior year level. In addition, our team at Phoenix Fuel did a superb job of servicing our Phoenix-based customers when the recent pipeline problem between Tucson and Phoenix interrupted the supply of finished products to this market." Holliger continued, "When we reported our 2002 earnings earlier this year, I stated that we had a goal to realize $20-$30 million from the sale of non-strategic assets in 2003. With the recent completion of the sale of our corporate office building we have reached this goal, and we are working on additional sales." With regard to the Company's debt reduction strategy, Holliger remarked, "We have made significant progress in reducing our level of debt. Since we acquired the Yorktown refinery, in May 2002, we have reduced our debt by approximately $83 million, $19 million of which was achieved in the recent third quarter. Presently, our revolver has no borrowings outstanding. While we are pleased with this level of debt reduction, we remain committed to further debt reduction as it will contribute to improved profitability and will also provide the needed flexibility to further grow our Company." Giant's senior management will hold a conference call at 1 p.m. ET on November 11, 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, 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, the inability to sell additional assets, including the completion of asset sales scheduled to close in the fourth quarter, 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 OPERATIONS (Unaudited) (In thousands except shares and per share data) - ---------------------------------------------------------------------------------------------------- Three Months Ended Nine Months Ended September 30, September 30, - ---------------------------------------------------------------------------------------------------- 2003 2002 2003 2002 - ---------------------------------------------------------------------------------------------------- Net revenues $ 472,668 $ 382,472 $1,359,900 $ 849,036 Cost of products sold (excluding depreciation and amortization) 389,182 331,055 1,135,811 704,809 - ---------------------------------------------------------------------------------------------------- Gross margin 83,486 51,417 224,089 144,227 Operating expenses 41,197 36,241 121,092 88,950 Depreciation and amortization 9,330 9,169 27,779 25,830 Selling, general and administrative expenses 8,126 7,031 22,421 18,587 Net loss (gain) on disposal/write-down of assets 1,081 (157) 1,314 (135) - ---------------------------------------------------------------------------------------------------- Operating income (loss) 23,752 (867) 51,483 10,995 Interest expense (9,672) (10,455) (29,696) (25,985) Amortization/write-off of financing costs (1,202) (954) (3,591) (2,071) Interest and investment income 15 74 98 399 - ---------------------------------------------------------------------------------------------------- Earnings (loss) from continuing operations before income taxes 12,893 (12,202) 18,294 (16,662) Provision (benefit) for income taxes 5,239 (5,041) 7,473 (6,586) - ---------------------------------------------------------------------------------------------------- Earnings (loss) from continuing operations before cumulative effect of change in accounting principle 7,654 (7,161) 10,821 (10,076) Discontinued operations, net of income tax (benefit) provision of $(84), $1,726, $(344) and $894 (125) 2,589 (515) 1,342 Cumulative effect of change in accounting principle, net of income tax benefit of $468 - - (704) - - ---------------------------------------------------------------------------------------------------- Net earnings (loss) $ 7,529 $ (4,572) $ 9,602 $ (8,734) ==================================================================================================== Net earnings (loss) per common share: Basic Continuing operations $ 0.87 $ (0.83) $ 1.24 $ (1.18) Discontinued operations (0.01) 0.30 (0.06) 0.16 Cumulative effect of change in accounting principle - - (0.08) - - ---------------------------------------------------------------------------------------------------- $ 0.86 $ (0.53) $ 1.10 $ (1.02) ==================================================================================================== Assuming dilution Continuing operations $ 0.86 $ (0.83) $ 1.23 $ (1.18) Discontinued operations (0.01) 0.30 (0.06) 0.16 Cumulative effect of change in accounting principle - - (0.08) - - ---------------------------------------------------------------------------------------------------- $ 0.85 $ (0.53) $ 1.09 $ (1.02) ==================================================================================================== Weighted average number of shares outstanding: Basic 8,785,555 8,571,779 8,713,513 8,564,042 Assuming dilution 8,887,824 8,571,779 8,788,836 8,564,042 ====================================================================================================
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (In thousands) - --------------------------------------------------------------------------------------- September 30, 2003 December 31, 2002 - --------------------------------------------------------------------------------------- Assets Current assets $ 217,654 $ 211,704 - --------------------------------------------------------------------------------------- Property, plant and equipment 636,363 627,444 Less accumulated depreciation and amortization (236,371) (211,749) - --------------------------------------------------------------------------------------- 399,992 415,695 Other assets 65,840 74,887 - --------------------------------------------------------------------------------------- Total Assets $ 683,486 $ 702,286 ======================================================================================= Liabilities and Stockholders' Equity Current liabilities $ 122,595 $ 120,351 Long-term debt, net of current portion 358,840 398,069 Deferred income taxes 43,252 37,612 Other liabilities 20,980 18,937 Stockholders' equity 137,819 127,317 - --------------------------------------------------------------------------------------- Total Liabilities and Stockholders' Equity $ 683,486 $ 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 3 Qtr. 2003 2 Qtr. 2003 1 Qtr. 2003 4 Qtr. 2002 3 Qtr. 2002 - --------------------------------------------------------------------------------------------------------- Refining - -------- Four Corners Operations: Crude Oil/NGL Throughput (BPD) 29,244 31,854 31,146 32,389 30,902 Refinery Sourced Sales Barrels (BPD) 30,147 30,472 31,534 30,006 32,408 Avg. Crude Oil Costs ($/Bbl) $ 28.90 $ 27.90 $ 31.21 $ 26.68 $ 25.96 Refining Margins ($/Bbl) $ 9.51 $ 9.41 $ 8.32 $ 7.64 $ 6.04 Retail Fuel Volumes Sold as a % of Four Corners Refinery's Sourced Sales Barrels 35% 38% 36% 39% 41% Yorktown Operations:(1) Crude Oil/NGL Throughput (BPD) 60,485 52,316 56,256 61,629 54,677 Refinery Sourced Sales Barrels (BPD) 62,937 54,046 59,389 60,911 58,803 Avg. Crude Oil Costs ($/Bbl) $ 28.54 $ 28.06 $ 32.85 $ 27.50 $ 26.57 Refining Margins ($/Bbl) $ 4.61 $ 2.82 $ 4.25 $ 3.21 $ 1.71 Retail(2) - --------- Fuel Gallons Sold (000's) 41,254 43,902 42,870 45,053 50,845 Fuel Margins ($/gal) $ 0.21 $ 0.22 $ 0.14 $ 0.15 $ 0.14 Merchandise Sales ($ in 000's) $ 35,387 $ 34,570 $ 30,934 $ 32,981 $ 38,069 Merchandise Margins 29% 30% 31% 27% 28% Number of Operating Units at End of Period 127 129 135 136 140 Phoenix Fuel - ------------ Fuel Gallons Sold (000's) 109,903 105,148 103,037 99,012 94,703 Fuel Margins ($/gal) $ 0.05 $ 0.05 $ 0.05 $ 0.06 $ 0.05 Lubricant Sales ($ in 000's) $ 6,140 $ 6,212 $ 5,615 $ 5,922 $ 5,234 Lubricant Margins 16% 15% 16% 17% 16% ========================================================================================================= Operating Income (Loss) (in 000's) - ---------------------------------- Refining - Four Corners Operations $ 13,269 $ 12,715 $ 9,503 $ 7,600 $ 5,816 - Yorktown Operations 10,540 (2,847) 8,358 2,696 (5,994) Retail(2) 5,052 4,809 1,033 413 1,638 Phoenix Fuel 2,101 2,284 1,606 2,223 1,752 Corporate (6,147) (5,033) (4,924) (4,550) (4,725) Net (loss) gain on disposal/write-down of assets(2) (1,272) (150) (273) 1,996 4,961 - --------------------------------------------------------------------------------------------------------- Total(2) $ 23,543 $ 11,778 $ 15,303 $ 10,378 $ 3,448 ========================================================================================================= Capital Expenditures (in 000's)(3) - ---------------------------------- Refining - Four Corners Operations $ 654 $ 257 $ 341 $ 344 $ 547 - Yorktown Operations (87) 4,317 4,446 2,418 900 Retail 490 120 254 123 449 Phoenix Fuel 271 129 205 185 87 Corporate 112 55 26 137 248 - --------------------------------------------------------------------------------------------------------- Total $ 1,440 $ 4,878 $ 5,272 $ 3,207 $ 2,231 ========================================================================================================= (1) The Yorktown Refinery was purchased on May 14, 2002. (2) Includes discontinued operations. (3) Excludes Yorktown Refinery acquisition contingent payments in the first three quarters of 2003.
Selected Financial Data September 30, 2003 December 31, 2002 - ------------------------------------------------------------------------------------ Working Capital (In Millions) $ 95,059 $ 91,353 Current Ratio 1.78:1 1.76:1 Long-Term Debt As A Percent of Total Capital 72.3% 75.8% Net Debt As A Percent of Total Capital 71.3% 75.3% Book Value Per Share $ 15.69 $ 14.85 Net cash provided by operating activities(4) $ 53,313 $ 38,068 (4) Net cash provided by operating activities for September 30, 2003 and December 31, 2002 is for nine and twelve months, respectively.
Share Price Data and Dividends (NYSE: GI) High Low Close Dividends - -------------------------------------------------------------- 2003 3rd Quarter $ 8.10 $ 5.57 $ 7.23 $ -- 2003 2nd Quarter $ 6.32 $ 4.42 $ 5.96 $ -- 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 $ --
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