-----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, Wc2lSklboA5IYsZhc73dtdfm0ogGj9vwIG3dsFPbhacd/N+UATm2n/9Syu1xn+2x muVRgSPNhVnUJOoQAvuIgQ== 0000856465-04-000010.txt : 20041110 0000856465-04-000010.hdr.sgml : 20041110 20041110104302 ACCESSION NUMBER: 0000856465-04-000010 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20041109 ITEM INFORMATION: Results of Operations and Financial Condition FILED AS OF DATE: 20041110 DATE AS OF CHANGE: 20041110 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: 041131689 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 thirdqtr8kfiling.txt GIANT INDUSTRIES, INC. 2004 THIRD QUARTER 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 9, 2004 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 Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) ======================================================================== ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION On November 9, 2004, the Registrant issued a press release containing earnings information for the quarter ended September 30, 2004. 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 Executive Vice President and Chief Financial Officer (Principal Financial Officer) Date: November 9, 2004 INDEX TO EXHIBITS Exhibit Number Description - ------- -------------------------------------------- 99 Press Release, dated as of November 9, 2004 EX-99 2 exhibit99.txt GIANT INDUSTRIES, INC. EXHIBIT 99 EXHIBIT 99 GIANT INDUSTRIES, INC. NEWS RELEASE Contact: Mark B. Cox Executive Vice President, Treasurer, & Chief Financial Officer Giant Industries, Inc. (480) 585-8888 FOR IMMEDIATE RELEASE November 9, 2004 GIANT INDUSTRIES, INC. ANNOUNCES THIRD QUARTER RESULTS Scottsdale, Arizona (November 9, 2004) -- Giant Industries, Inc. [NYSE: GI] today reported net earnings of $6.0 million, or $0.48 per diluted share, for the third quarter ended September 30, 2004. Net earnings were $7.5 million, or $0.85 per diluted share, in the third quarter of 2003. The Company reported net earnings of $15.5 million, or $1.41 per diluted share, for the first nine months of 2004 compared to net earnings of $9.6 million, or $1.09 per diluted share, in 2003. Giant's Chairman and Chief Executive Officer, Fred Holliger commented, "Good overall performance from each of our strategic business units contributed to a very solid financial performance in the third quarter. Our refining operations contributed operating earnings of $19.8 million as refining margins continued the strong trend that we have experienced throughout most of this year. Earnings at the Yorktown refinery were negatively impacted in the month of September, as portions of the refinery were shut down for the entire month as we made upgrades at the refinery to enable us to process additional higher acid crude oil. Year- to-date, refining margins at the Four Corners refineries have been approximately $9.50 per barrel and Yorktown refining margins have been approximately $6.00 per barrel." "Our retail operations continued to see growth in fuel volumes and merchandise sales over last year's third quarter as well as year-to-date. Same store fuel volumes increased approximately 4% over last year's third quarter level and same store merchandise sales increased approximately 5% over the prior year third quarter level. Earnings, however, were negatively impacted in the quarter versus the prior year level by lower fuel and merchandise margins." "In the quarter, Phoenix Fuel continued to achieve growth in both wholesale and cardlock fuel volumes. These improved volumes coupled with somewhat steady product margins contributed to increased earnings versus the prior year level." Holliger continued, "As I mentioned earlier, we recently completed upgrades at our Yorktown refinery that increase the amount of higher acid crude oil that it can process from approximately 20,000 to 40,000 barrels per day. This change in crude mix could result in additional pre-tax earnings potentially in excess of $20 million on an annual basis above those we could have expected to see from our operations in a similar market environment. The debt reduction and the refinancing that we completed earlier this year will reduce our annual pre-tax interest payments by approximately $10.6 million in comparison to the 2003 level assuming no future borrowings on our revolving credit facility. These two events combined could result in an increase in annual pre-tax earnings and operating cash flow in excess of $30 million per year." Commenting on current market conditions, Holliger said, "Domestic distillate inventories continue to be tight as we head into what is typically the peak distillate demand season. Gasoline inventories are also running below historical levels for this time of year. These factors could contribute to continued strong financial performance in the fourth quarter of 2004." Giant's senior management will hold a conference call at 1 p.m. ET on November 10, 2004 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 risk that the strong trend in refining margins experienced throughout most of this year will not continue; the risk that we will not realize the expected economic benefits from processing higher acid crude oil; possibility that we will have borrowings on our revolving credit facility; the risk that distillate inventories will not remain tight, distillate demand will not grow, and that gasoline inventories will remain below historical levels; 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, - ---------------------------------------------------------------------------------------------------- 2004 2003 2004 2003 - ---------------------------------------------------------------------------------------------------- Net revenues $ 642,370 $ 472,275 $ 1,837,084 $ 1,359,708 Cost of products sold 564,506 388,831 1,582,515 1,135,511 - ---------------------------------------------------------------------------------------------------- Gross margin 77,864 83,444 254,569 224,197 Operating expenses 42,119 42,046 129,749 122,088 Depreciation and amortization 9,016 9,314 27,318 27,731 Selling, general and administrative expenses 10,110 8,124 28,361 22,419 Net (gain) loss on disposal/write-down of assets (907) 151 (327) 369 Gain from involuntary conversion (958) - (958) - - ---------------------------------------------------------------------------------------------------- Operating income 18,484 23,809 70,426 51,590 Interest expense (7,173) (9,657) (25,222) (29,679) Costs associated with early debt extinguishment - - (10,875) - Amortization/write-off of financing costs (1,013) (1,202) (7,827) (3,591) Interest and investment income 57 - 138 81 - ---------------------------------------------------------------------------------------------------- Earnings from continuing operations before income taxes 10,355 12,950 26,640 18,401 Provision for income taxes 4,347 5,257 10,978 7,499 - ---------------------------------------------------------------------------------------------------- Earnings from continuing operations before cumulative effect of change in accounting principle 6,008 7,693 15,662 10,902 Discontinued operations, net of income tax benefit of $13, $102, $105 and $370 (21) (164) (169) (596) Cumulative effect of change in accounting principle, net of income tax benefit of $469 - - - (704) - ---------------------------------------------------------------------------------------------------- Earnings (loss) $ 5,987 $ 7,529 $ 15,493 $ 9,602 ==================================================================================================== Earnings (loss) per common share: Basic Continuing operations $ 0.49 $ 0.88 $ 1.46 $ 1.25 Discontinued operations - (0.02) (0.02) (0.07) Cumulative effect of change in accounting principle - - - (0.08) - ---------------------------------------------------------------------------------------------------- $ 0.49 $ 0.86 $ 1.44 $ 1.10 ==================================================================================================== Assuming dilution Continuing operations $ 0.48 $ 0.87 $ 1.43 $ 1.24 Discontinued operations - (0.02) (0.02) (0.07) Cumulative effect of change in accounting principle - - - (0.08) - ---------------------------------------------------------------------------------------------------- $ 0.48 $ 0.85 $ 1.41 $ 1.09 ==================================================================================================== Weighted average number of shares outstanding: Basic 12,242,994 8,785,555 10,693,386 8,713,513 Assuming dilution 12,496,204 8,887,824 10,960,684 8,788,836 ====================================================================================================
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (In thousands) - ----------------------------------------------------------------------------------------- September 30, 2004 December 31, 2003 - ----------------------------------------------------------------------------------------- Assets Current assets $ 252,498 $ 251,702 - ----------------------------------------------------------------------------------------- Property, plant and equipment 654,608 628,718 Less accumulated depreciation and amortization (256,932) (235,539) - ----------------------------------------------------------------------------------------- 397,676 393,179 Other assets 64,810 54,773 - ----------------------------------------------------------------------------------------- Total Assets $ 714,984 $ 699,654 ========================================================================================= Liabilities and Stockholders' Equity Current liabilities $ 152,220 $ 154,408 Long-term debt, net of current portion 292,638 355,601 Deferred income taxes 31,500 28,039 Other liabilities and deferred income 23,286 22,170 Stockholders' equity 215,340 139,436 - ----------------------------------------------------------------------------------------- Total Liabilities and Stockholders' Equity $ 714,984 $ 699,654 ========================================================================================= Certain reclassifications have been made to the year 2003 financial statements to conform to classifications used in 2004. These reclassifications had no effect on reported earnings or stockholders' equity.
OPERATING STATISTICS 3 Qtr. 2004 2 Qtr. 2004 1 Qtr. 2004 4 Qtr. 2003 3 Qtr. 2003 - -------------------------------------------------------------------------------------------------------- Refining - -------- Four Corners Operations: Crude Oil/NGL Throughput (BPD) 29,271 26,463 28,280 29,992 29,244 Refinery Sourced Sales Barrels (BPD) 28,412 25,175 27,615 27,489 30,147 Avg. Crude Oil Costs ($/Bbl) $ 40.99 $ 35.97 $ 32.61 $ 29.24 $ 28.90 Refining Margins ($/Bbl) $ 8.14 $ 12.44 $ 8.35 $ 8.07 $ 9.51 Retail Fuel Volumes Sold as a % of Four Corners Refinery's Sourced Sales Barrels 38% 40% 36% 37% 35% Yorktown Operations: Crude Oil/NGL Throughput (BPD) 53,991 67,639 61,200 61,540 60,485 Refinery Sourced Sales Barrels (BPD) 53,585 69,862 63,824 59,307 62,937 Avg. Crude Oil Costs ($/Bbl) $ 38.43 $ 35.53 $ 32.68 $ 29.47 $ 28.54 Refining Margins ($/Bbl) $ 6.01 $ 6.20 $ 5.55 $ 4.47 $ 4.61 Retail(1) - --------- Fuel Gallons Sold (000's) 41,244 38,439 37,681 38,782 39,524 Fuel Margins ($/gal) $ 0.18 $ 0.21 $ 0.16 $ 0.19 $ 0.21 Merchandise Sales ($ in 000's) $ 36,214 $ 34,541 $ 30,844 $ 32,148 $ 34,664 Merchandise Margins 20% 24% 27% 28% 29% Number of Operating Units at End of Period 125 125 127 127 125 Phoenix Fuel - ------------ Fuel Gallons Sold (000's) 119,253 124,342 112,844 111,110 109,903 Fuel Margins ($/gal) $ 0.05 $ 0.06 $ 0.05 $ 0.06 $ 0.05 Lubricant Sales ($ in 000's) $ 7,933 $ 7,827 $ 6,875 $ 6,508 $ 6,140 Lubricant Margins 13% 13% 13% 14% 16% - -------------------------------------------------------------------------------------------------------- Operating Income (Loss) (before corporate allocations) (in 000's) - --------------------------------- Refining - Four Corners Operations $ 8,150 $ 13,704 $ 6,161 $ 6,445 $ 13,269 - Yorktown Operations 11,652 21,811 14,435 5,988 10,540 Retail(1) 1,428 2,614 988 2,582 4,153 Phoenix Fuel 2,216 2,963 2,113 2,492 2,101 Corporate (6,879) (7,256) (5,268) (4,891) (6,147) Net gain (loss) on disposal/write-down of assets(1) 1,883 (549) (14) (96) (373) - -------------------------------------------------------------------------------------------------------- Total(1) $ 18,450 $ 33,287 $ 18,415 $ 12,520 $ 23,543 ======================================================================================================== Capital Expenditures (in 000's)(3) - ---------------------------------- Refining - Four Corners Operations(2) $ 5,915 $ 15,637 $ 744 $ 4,052 $ 654 - Yorktown Operations 10,523 1,981 1,872 448 (87) Retail 919 438 258 1,458 490 Phoenix Fuel 500 465 328 229 271 Corporate 135 115 11 102 112 - -------------------------------------------------------------------------------------------------------- Total $ 17,992 $ 18,636 $ 3,213 $ 6,289 $ 1,440 ======================================================================================================== (1) Includes discontinued operations. (2) Includes payments related to the Ciniza fire incident. (3) Excludes Yorktown refinery acquisition contingent payments.
Selected Financial Data September 30, 2004 December 31, 2003 - -------------------------------------------------------------------------------------- Working Capital (In Millions) $ 100,278 $ 97,294 Current Ratio 1.66:1 1.63:1 Long-Term Debt As A Percent of Total Capital(4) 57.6% 71.8% Net Debt As A Percent of Total Capital(5) 54.5% 70.2% Book Value Per Share(6) $ 17.67 $ 15.87 Net cash provided by operating activities(7) $ 71,871 $ 62,349 - -------------------------------------------------------------------------------------- (4) Long-term debt represents long-term debt, net of current portion. Total capital represents long-term debt, net of current portion, plus total stockholders' equity. (5) Net debt represents long-term debt, net of current portion, less cash and cash equivalents. Total capital represents long-term debt, net of current portion, less cash and cash equivalents plus total stockholders' equity. (6) Book value per share represents total stockholders' equity divided by number of common shares outstanding. (7) Net cash provided by operating activities for September 30, 2004 and December 31, 2003 is for nine and twelve months, respectively.
Share Price Data (NYSE: GI) High Low Close - ------------------------------------------- 2004 3rd Quarter $27.25 $20.29 $24.30 2004 2nd Quarter $22.16 $15.37 $22.00 2004 1st Quarter $25.44 $11.71 $20.70 2003 4th Quarter $12.73 $ 7.10 $11.98 2003 3rd Quarter $ 8.10 $ 5.57 $ 7.23
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