EX-99 2 exhibit99-1.txt GIANT INDUSTRIES, INC. PRESS RELEASE EXHIBIT 99 EXHIBIT 99.1 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 February 27, 2006 GIANT INDUSTRIES, INC. ANNOUNCES RECORD FOURTH QUARTER AND RECORD FULL YEAR 2005 OPERATING RESULTS Scottsdale, Arizona, February 27, 2006 - Giant Industries, Inc. [NYSE: GI] announced today full year 2005 net earnings of $103.9 million or $7.62 per diluted share versus net earnings of $16.2 million or $1.42 per diluted share in 2004. For the fourth quarter of 2005, net earnings were $26.6 million or $1.82 per diluted share compared to net earnings of $729,000 or $0.06 per diluted share for the fourth quarter of 2004. Fred Holliger, Giant's Chief Executive Officer, commented, "This past year was an outstanding year for Giant as we grew earnings and improved our balance sheet. In our Refining operations, stronger margins, both on the East Coast and in the Four Corners region, resulted in operating income rising approximately $111.6 million over 2004's level. Within our Wholesale operations, Phoenix Fuel's continued growth in both wholesale and cardlock fuel volumes, coupled with an increase in fuel margins, achieved an improvement of approximately $6.8 million in operating income over the prior year's level. Since its acquisition in July 2005, Dial Oil has also contributed to earnings; in fact, their earnings have consistently exceeded our original expectations. Our Retail operations continued to achieve growth in both merchandise and fuel sales on a comparable store basis. This sales growth combined with stronger fuel and merchandise margins resulted in an approximately $4.7 million improvement in operating income over the prior year level." "Our fourth quarter 2005 results were quite strong given the fact that our largest refinery did not operate the last week of November and the entire month of December as a result of the fire that occurred at the facility on November 25, 2005. In addition to the loss of production, Refining group fourth quarter operating income was negatively impacted by approximately $3.5 million of expenses associated with the fire and expedited maintenance that we chose to perform while the refinery was down. Refining operating income for the quarter was up approximately 404% versus the fourth quarter of 2004. On January 18, 2006, we resumed partial operations at the Yorktown refinery. The refinery is operating at approximately two-thirds capacity or approximately 40,000 barrels per day and is currently targeted to return to full operation in April of this year." "In the fourth quarter, the operating income contribution from our Wholesale operations increased by approximately 109% as a result of improved margins at Phoenix Fuel and the contribution from Dial Oil. Our Retail operations saw operating income increase by approximately 272% versus the fourth quarter 2004, as a result of increased fuel and merchandise sales coupled with improvement in both fuel and merchandise margins." Holliger continued, "We also continue to make progress on improving our balance sheet, as our debt-to-total capitalization ratio improved to 41% at year-end versus 58% at the end of 2004. It's also worth noting that our debt- to-total capitalization ratio, net of cash, improved to 22% at year-end versus 55% at the end of last year." Commenting on first quarter operations, Holliger said, "As a result of a relatively mild winter and higher import levels that have contributed to a build in inventory levels refining margins at Yorktown are currently lower than the same time last year. Additionally, because of the fire we are not operating our FCC unit at Yorktown. As a result, we are selling the feedstocks for the FCC unit that would normally be processed into higher valued gasoline and diesel. We have business interruption insurance coverage for the earnings impact of the fire after the policy's 45-day waiting period is exceeded, which occurred on January 9, 2006. Refining margins at the Four Corners refineries are currently higher than the same time last year. We continue to believe that the removal of MTBE from the gasoline pool later this spring, and the transition to Ultra Low Sulfur Diesel this summer, coupled with refining capacity constraints support a positive outlook for the industry in 2006." "The Wholesale group continues to experience growth in fuel volumes, but is experiencing lower fuel margins compared to the same time last year. Our Retail operations are continuing to experience growth in both merchandise and fuel sales on a comparable store basis. Recently, fuel margins within our Retail operations have improved primarily due to decreases in the cost of fuel, while merchandise margins have remained stable." Giant's senior management will hold a conference call at 1:00 p.m. EST (11:00 a.m. MST) on February 28, 2006 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. and Dial Oil Co., both of which are wholesale petroleum products distributors. 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 outlook for the industry will not remain positive, the risk that the earnings for Dial will not continue to exceed our expectations, the risk that the growth experienced by Wholesale Group and our Retail Group will not continue, retail fuel margins will not continue to improve and positively affect earnings, retail merchandise margins will not remain stable, we will not be able to further strengthen our overall financial condition, our Yorktown refinery will not be able to continue operating at 40,000 barrels per day while repairs are being completed, the risk that the repairs to the refinery could take longer than we expect, we will not receive anticipated amounts of insurance recovery in connection with the Yorktown fire, 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 Twelve Months Ended December 31, December 31, ------------------------------------------------------------------------------------------------------------ 2005 2004 2005 2004 ------------------------------------------------------------------------------------------------------------ Net revenues $ 920,938 $ 674,308 $ 3,581,246 $ 2,511,589 ------------------------------------------------------------------------------------------------------------ Cost of products sold (excluding depreciation and amortization) 798,110 603,414 3,093,191 2,186,070 Operating expenses 56,750 45,952 205,639 175,846 Depreciation and amortization 9,845 9,763 40,280 37,105 Selling, general and administrative expenses 10,100 9,472 45,173 37,834 Net loss on disposal of assets, including assets held for sale 174 488 1,009 161 Gain from insurance settlement due to Ciniza fire - (2,949) (3,688) (3,907) ------------------------------------------------------------------------------------------------------------ Operating income 45,959 8,168 199,642 78,480 Interest expense (5,327) (7,685) (24,485) (32,907) Costs associated with early debt extinguishment - 311 (2,082) (10,564) Amortization of financing costs (399) (514) (2,797) (8,341) Investment and other income 1,831 216 2,799 354 ------------------------------------------------------------------------------------------------------------ Earnings from continuing operations before income taxes 42,064 496 173,077 27,022 Provision (benefit) for income taxes 15,369 (251) 69,146 10,684 ------------------------------------------------------------------------------------------------------------ Earnings from continuing operations 26,695 747 103,931 16,338 (Loss) earnings from discontinued operations, net of income tax benefit (provision) of $11, ($9) and $73 - (18) 15 (117) ------------------------------------------------------------------------------------------------------------ Cumulative effect of change in accounting principle, net of income tax benefit of $46 (68) - (68) - ------------------------------------------------------------------------------------------------------------ Net earnings $ 26,627 $ 729 $ 103,878 $ 16,221 ============================================================================================================ Net earnings (loss) per common share: Basic Continuing operations $ 1.84 $ 0.06 $ 7.71 $ 1.47 Discontinued operations $ - $ - $ - $ (0.01) Cumulative effect of change in accounting principle $ (0.01) $ - $ (0.01) $ - ============================================================================================================ Assuming dilution Continuing operations $ 1.83 $ 0.06 $ 7.63 $ 1.43 Discontinued operations $ - $ - $ - $ (0.01) Cumulative effect of change in accounting principle $ (0.01) $ - $ (0.01) $ - ============================================================================================================ Weighted average number of shares outstanding: Basic 14,518,874 12,330,646 13,485,702 11,104,938 Assuming dilution 14,626,099 12,535,479 13,629,132 11,358,298 ============================================================================================================
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (In thousands) ----------------------------------------------------------------------------------------- December 31, 2005 December 31, 2004 ----------------------------------------------------------------------------------------- Assets Current assets $ 442,355 $ 232,005 ----------------------------------------------------------------------------------------- Property, plant and equipment 764,788 671,851 Less accumulated depreciation and amortization (297,962) (265,475) ----------------------------------------------------------------------------------------- 466,826 406,376 Other assets 75,291 64,025 ----------------------------------------------------------------------------------------- Total Assets $ 984,472 $ 702,406 ========================================================================================= Liabilities and Stockholders' Equity Current liabilities $ 208,508 $ 128,833 Long-term debt 274,864 292,759 Deferred income taxes 76,834 41,039 Other liabilities 24,430 23,336 Stockholders' equity 399,836 216,439 ----------------------------------------------------------------------------------------- Total Liabilities and Stockholders' Equity $ 984,472 $ 702,406 ========================================================================================= Certain reclassifications have been made to the year 2004 financial statements to conform to classifications used in 2005. These reclassifications had no effect on reported earnings or stockholders' equity.
OPERATING STATISTICS 4 Qtr. 2005 3 Qtr. 2005 2 Qtr. 2005 1 Qtr. 2005 4 Qtr. 2004 -------------------------------------------------------------------------------------------------------- Refining Group: --------------- Four Corners Operations: Crude Oil/NGL Throughput (BPD) 29,033 29,867 29,811 28,810 29,088 Refinery Sourced Sales Barrels (BPD) 27,075 29,096 29,344 28,559 28,198 Avg. Crude Oil Costs ($/Bbl) $ 60.21 $ 60.59 $ 51.64 $ 47.46 $ 47.18 Refining Margins ($/Bbl) $ 16.64 $ 18.08 $ 13.48 $ 7.86 $ 7.36 Retail Fuel Volumes Sold as a % of Four Corners Refinery's Sourced Sales Barrels 37% 38% 37% 37% 37% Yorktown Operations: Crude Oil/NGL Throughput (BPD) 41,685 68,201 68,449 65,740 52,941 Refinery Sourced Sales Barrels (BPD) 45,566 70,936 71,539 62,726 56,854 Avg. Crude Oil Costs ($/Bbl) $ 57.72 $ 58.05 $ 48.76 $ 44.96 $ 44.55 Refining Margins ($/Bbl) $ 9.61 $ 11.25 $ 7.30 $ 6.78 $ 4.56 Retail Group:(1) ------------- Fuel Gallons Sold (000's) 39,229 42,529 41,410 39,469 40,253 Fuel Margins ($/gal) $ 0.29 $ 0.21 $ 0.17 $ 0.11 $ 0.17 Merchandise Sales ($ in 000's) $ 34,524 $ 38,285 $ 36,325 $ 31,287 $ 32,635 Merchandise Margins 28% 27% 27% 27% 26% Number of Operating Units at End of Period 123 124 124 125 124 Wholesale Group: ---------------- Phoenix Fuel ------------ Fuel Gallons Sold (000's) 119,029 118,844 120,344 120,865 116,569 Fuel Margins ($/gal) $ 0.08 $ 0.08 $ 0.06 $ 0.06 $ 0.06 Lubricant Sales ($ in 000's) $ 8,295 $ 8,247 $ 9,027 $ 8,412 $ 7,962 Lubricant Margins 14% 28% 10% 14% 13% Dial Oil -------- Fuel Gallons Sold (000's) 28,491 24,963 - - - Fuel Margins ($/gal) $ 0.18 $ 0.12 - - - Lubricant Sales ($ in 000's) $ 6,494 $ 5,833 - - - Lubricant Margins 16% 13% - - - Merchandise Sales ($ in 000's) $ 1,800 $ 2,241 - - - Merchandise Margins 36% 26% - - - Operating Retail Outlets at Period End 12 12 - - - ======================================================================================================== 4 Qtr. 2005 3 Qtr. 2005 2 Qtr. 2005 1 Qtr. 2005 4 Qtr. 2004 -------------------------------------------------------------------------------------------------------- Operating Income (Loss) (before corporate allocations) (in 000's) ----------------------------------- Refining - Four Corners Operations $ 22,539 $ 32,968 $ 19,724 $ 6,285 $ 2,899 - Yorktown Operations 16,533 52,288 27,312 17,650 4,854 Retail(1) 6,169 3,804 3,114 (1,679) 1,658 Wholesale: Phoenix Fuel 4,110 6,641 2,815 3,699 3,194 Dial Oil 2,581 1,509 - - - Corporate (5,800) (11,698) (8,557) (5,043) (6,922) Net (loss) gain on disposal/write-down of assets(1)(2) (174) (1,055) 425 3,505 2,455 -------------------------------------------------------------------------------------------------------- Total(1) $ 45,958 $ 84,457 $ 44,833 $ 24,417 $ 8,138 ======================================================================================================== Capital Expenditures (in 000's)(3) ---------------------------------- Refining - Four Corners Operations(4) $ 5,687 $ 3,958 $ 1,930 $ 1,167 $ 1,302 - Yorktown Operations 14,190 14,734 10,790 9,837 12,635 Retail 1,488 1,221 1,230 780 4,220 Wholesale: Phoenix Fuel 366 470 576 458 414 Dial Oil 163 58 - - - Corporate 375 252 345 584 259 -------------------------------------------------------------------------------------------------------- Total $ 22,269 $ 20,693 $ 14,871 $ 12,826 $ 18,830 ======================================================================================================== (1) Includes discontinued operations. (2) Includes insurance proceeds related to the Ciniza fire incident. (3) Excludes Yorktown refinery acquisition contingent payments. (4) Includes disbursements related to the Ciniza fire incident.
Selected Financial Data December 31, 2005 December 31, 2004 ------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------- Working Capital (In Thousands) $ 233,847 $ 103,172 Current Ratio 2.12:1 1.80:1 Long-Term Debt As A Percent of Total Capital(5) 40.7% 57.5% Net Debt As A Percent of Total Net Capital(6) 21.7% 55.4% Book Value Per Share(7) $ 27.36 $ 17.55 Net cash provided by operating activities $ 188,808 $ 76,514 ------------------------------------------------------------------------------------- (5) Total capital represents long-term debt plus total stockholders' equity. (6) Net debt represents long-term debt less cash and cash equivalents. Total net capital represents long-term debt less cash and cash equivalents plus total stockholders' equity. (7) Book value per share represents total stockholders' equity divided by number of common shares outstanding.
Share Price Data (NYSE: GI) High Low Close ------------------------------------------- 2005 4th Quarter $60.50 $47.80 $51.96 2005 3rd Quarter $59.74 $35.90 $58.54 2005 2nd Quarter $36.49 $25.52 $36.00 2005 1st Quarter $31.81 $23.54 $25.70 2004 4th Quarter $28.98 $22.00 $26.51
RECONCILIATIONS TO AMOUNTS REPORTED UNDER GENERALLY ACCEPTED ACCOUNTING PRINCIPLES REFINING GROUP Refining Margin --------------- Refining margin is the difference between average net sales prices and average cost of products produced per refinery sourced sales barrel of refined product. Refining margins for each of our refineries and all of our refineries on a consolidated basis are calculated as shown below.
Three Months Ended Twelve Months Ended December 31, December 31, ------------------------------------------------------------------------------------------------------------ 2005 2004 2005 2004 ------------------------------------------------------------------------------------------------------------ AVERAGE PER BARREL Four Corners Operations Net sales $ 78.22 $ 57.46 $ 72.42 $ 52.15 Less cost of products 61.58 50.10 58.39 43.19 ------------------------------------------------------------------------------------------------------------ Refining margin $ 16.64 $ 7.36 $ 14.03 $ 8.96 ============================================================================================================ Yorktown Operations Net sales $ 68.17 $ 50.57 $ 62.66 $ 45.11 Less cost of products 58.56 46.01 53.94 39.51 ------------------------------------------------------------------------------------------------------------ Refining margin $ 9.61 $ 4.56 $ 8.72 $ 5.60 ============================================================================================================ Consolidated Net sales $ 71.92 $ 52.85 $ 65.71 $ 47.29 Less cost of products 56.68 47.37 55.33 40.65 ------------------------------------------------------------------------------------------------------------ Refining margin $ 15.24 $ 5.48 $ 10.38 $ 6.64 ============================================================================================================ Reconciliations of refined product sales from produced products sold per barrel to net revenues Four Corners Operations Average sales price per produced barrel sold $ 78.22 $ 57.46 $ 72.42 $ 52.15 Times refinery sourced sales barrels per day 27,075 28,198 28,516 27,355 Times number of days in period 92 92 365 366 ------------------------------------------------------------------------------------------------------------ Refined product sales from produced products sold (000's) $194,838 $149,064 $ 753,772 $ 522,122 ============================================================================================================ Yorktown Operations Average sales price per produced barrel sold $ 68.17 $ 50.57 $ 62.66 $ 45.11 Times refinery sourced sales barrels per day 45,566 56,854 62,667 60,999 Times number of days in period 92 92 365 366 ------------------------------------------------------------------------------------------------------------ Refined product sales from produced products sold (000's) $285,774 $264,510 $1,433,251 $1,007,109 ============================================================================================================ Consolidated (000's) Sum of refined product sales from produced products sold* $480,612 $413,574 $2,187,023 $1,529,231 Purchased product, Transportation and other revenues 120,306 51,473 266,484 202,039 ------------------------------------------------------------------------------------------------------------ Net revenue $600,918 $465,047 $2,453,507 $1,731,270 ============================================================================================================ *Includes inter-segment net revenues.
Three Months Ended Twelve Months Ended December 31, December 31, --------------------------------------------------------------------------------------------------------------- 2005 2004 2005 2004 --------------------------------------------------------------------------------------------------------------- Reconciliation of average cost of products per produced per barrel sold to total cost of products sold (excluding depreciation and amortization) Four Corners Operations Average cost of products per produced barrel sold $ 61.58 $ 50.10 $ 58.39 $ 43.19 Times refinery sourced sales barrels per day 27,075 28,198 28,516 27,355 Times number of days in period 92 92 365 366 --------------------------------------------------------------------------------------------------------------- Cost of products for produced products sold (000's) $153,389 $129,970 $ 607,743 $ 432,415 =============================================================================================================== Yorktown Operations Average cost of products per produced barrel sold $ 58.56 $ 46.01 $ 53.94 $ 39.51 Times refinery sourced sales barrels per day 45,566 56,854 62,667 60,999 Times number of days in period 92 92 365 366 --------------------------------------------------------------------------------------------------------------- Cost of products for produced products sold (000's) $245,488 $240,658 $1,233,794 $ 882,086 =============================================================================================================== Consolidated Sum of refined cost of produced products sold $398,877 $370,628 $1,841,537 $1,314,501 Purchased product, transportation and other cost of products sold 114,554 45,120 236,363 175,706 --------------------------------------------------------------------------------------------------------------- Total cost of products sold (excluding depreciation and amortization) $513,431 $415,748 $2,077,900 $1,490,207 ===============================================================================================================
RETAIL GROUP Fuel Margin ----------- Fuel margin is the difference between fuel sales less cost of fuel sales divided by number of gallons sold. Three Months Ended Twelve Months Ended December 31, December 31, --------------------------------------------------------------------------------------------------------------- 2005 2004 2005 2004 --------------------------------------------------------------------------------------------------------------- (in 000's except fuel margin per gallon) Fuel sales $ 99,697 $ 78,485 $ 381,166 $ 291,923 Less cost of fuel sold 88,344 71,511 349,467 263,484 --------------------------------------------------------------------------------------------------------------- Fuel margin $ 11,353 $ 6,974 $ 31,699 $ 28,439 Number of gallons sold 39,229 40,253 162,637 156,917 Fuel margin per gallon $ 0.29 $ 0.17 $ 0.19 $ 0.18 Reconciliation of fuel sales to net revenues (000's) Fuel sales $ 99,697 $ 78,485 $ 381,166 $ 291,923 Excise taxes included in sales (16,665) (16,796) (62,671) (58,867) --------------------------------------------------------------------------------------------------------------- Fuel sales, net of excise taxes 83,032 61,689 318,495 233,056 Merchandise sales 34,524 32,635 140,422 134,012 Other sales 4,872 4,003 16,824 15,119 --------------------------------------------------------------------------------------------------------------- Net revenues $ 122,428 $ 98,327 $ 475,741 $ 382,187 =============================================================================================================== Reconciliation of fuel cost of products sold to total cost of products sold (excluding depreciation and amortization) (000's) Fuel cost of products sold $ 88,344 $ 71,511 $ 349,467 $ 263,484 Excise taxes included in cost of products sold (16,665) (16,796) (62,671) (58,867) --------------------------------------------------------------------------------------------------------------- Fuel cost of products sold, net of excise taxes 71,679 54,715 286,796 204,617 Merchandise cost of products sold 24,910 24,248 102,079 101,891 Other cost of products sold 3,971 3,256 13,466 12,044 --------------------------------------------------------------------------------------------------------------- Total cost of products sold (excluding depreciation and amortization) $ 100,560 $ 82,219 $ 402,341 $ 318,552 ===============================================================================================================
WHOLESALE GROUP Fuel Margin ----------- Fuel margin is the difference between fuel sales less cost of fuel sales divided by number of gallons sold. Phoenix Fuel ------------ Three Months Ended Twelve Months Ended December 31, December 31, --------------------------------------------------------------------------------------------------------------- 2005 2004 2005 2004 --------------------------------------------------------------------------------------------------------------- (in 000's except fuel margin per gallon) Fuel sales $ 273,394 $ 211,845 $1,033,660 $ 807,158 Less cost of fuel sold 264,225 204,807 1,000,488 781,223 --------------------------------------------------------------------------------------------------------------- Fuel margin $ 9,169 $ 7,038 $ 33,172 $ 25,935 Number of gallons sold 119,029 116,569 479,083 473,009 Fuel margin per gallon $ 0.08 $ 0.06 $ 0.07 $ 0.05 Reconciliation of fuel sales to net revenues (000's) Fuel sales $ 273,394 $ 211,845 $1,033,660 $ 807,158 Excise taxes included in sales (43,277) (38,669) (162,780) (160,776) --------------------------------------------------------------------------------------------------------------- Fuel sales, net of excise taxes 230,117 173,176 870,880 646,382 Lubricant sales 8,295 7,962 33,981 30,597 Other sales 535 813 3,937 3,596 --------------------------------------------------------------------------------------------------------------- Net revenues $ 238,947 $ 181,951 $ 908,798 $ 680,575 =============================================================================================================== Reconciliation of fuel cost of products sold to total cost of products sold (excluding depreciation and amortization) (000's) Fuel cost of products sold $ 264,225 $ 204,807 $1,000,488 $ 781,223 Excise taxes included in cost of products sold (43,277) (38,669) (162,780) (160,776) --------------------------------------------------------------------------------------------------------------- Fuel cost of products sold, net of excise taxes 220,948 166,138 837,708 620,447 Lubricant cost of products sold 7,159 6,964 28,427 26,633 Other cost of products sold 267 262 992 605 --------------------------------------------------------------------------------------------------------------- Total cost of products sold (excluding depreciation and amortization) $ 228,374 $ 173,364 $ 867,127 $ 647,685 ===============================================================================================================
Dial Oil(1),(2) --------------- Three Months Ended Twelve Months Ended December 31, December 31, --------------------------------------------------------------------------------------------------------------- 2005 2004 2005 2004 --------------------------------------------------------------------------------------------------------------- (in 000's except fuel margin per gallon) Fuel sales $ 60,403 $ - $ 112,656 $ - Less cost of fuel sold 55,414 - 104,733 - --------------------------------------------------------------------------------------------------------------- Fuel margin $ 4,989 $ - $ 7,923 $ - Number of gallons sold 28,491 - 53,453 - Fuel margin per gallon $ 0.18 $ - $ 0.15 $ - Reconciliation of fuel sales to net revenues (000's) Fuel sales $ 60,403 $ - $ 112,656 $ - Lubricant and merchandise sales 8,295 - 16,869 - Other sales 703 - 1,465 - --------------------------------------------------------------------------------------------------------------- Net revenues $ 69,401 $ - $ 130,990 $ - =============================================================================================================== Reconciliation of cost of fuel sold to total cost of products sold (excluding depreciation and amortization) Fuel cost of products sold $ 55,414 $ - $ 104,733 $ - Lubricants and merchandise cost of products sold 6,637 - 13,803 - Other cost of products sold 361 - 361 - --------------------------------------------------------------------------------------------------------------- Total cost of products sold (excluding depreciation and amortization) $ 62,412 $ - $ 118,897 $ - =============================================================================================================== (1) Statistics presented are from July 12, 2005 to December 31, 2005. (2) Dial Oil presents sales and cost of sales, net of excise taxes.
Consolidated ------------ Three Months Ended Twelve Months Ended December 31, December 31, --------------------------------------------------------------------------------------------------------------- 2005 2004 2005 2004 --------------------------------------------------------------------------------------------------------------- Reconciliation to net revenues reported in Condensed Consolidated Statement of Earnings (000's) Net revenues - Refinery Group $ 600,918 $ 465,047 $2,453,507 $1,731,270 Net revenues - Retail Group 122,428 98,327 475,741 382,187 Net revenues - Wholesale Group: Net revenues - Phoenix Fuel 238,947 181,951 908,798 680,575 Net revenues - Dial Oil 69,401 - 130,990 - Net revenues - Other 77 43 455 529 Eliminations (110,833) (71,060) (388,245) (282,972) --------------------------------------------------------------------------------------------------------------- Total net revenues reported in Condensed Consolidated Statement of Earnings $ 920,938 $ 674,308 $3,581,246 $2,511,589 =============================================================================================================== Reconciliation to cost of products sold (excluding depreciation and amortization) in Condensed Consolidated Statement of Earnings (000's) Cost of products sold - Refinery Group (excluding depreciation and amortization) $ 513,431 $ 415,748 $2,077,900 $1,490,207 Cost of products sold - Retail Group (excluding depreciation and amortization) 100,560 82,219 402,341 318,552 Cost of products sold - Wholesale Group: Cost of products sold - Phoenix Fuel (excluding depreciation and amortization) 228,374 173,364 867,127 647,685 Cost of products sold - Dial Oil (excluding depreciation and amortization) 62,412 - 118,897 - Eliminations (110,833) (71,060) (388,245) (282,972) Other 4,166 3,143 15,171 12,598 --------------------------------------------------------------------------------------------------------------- Total cost of products sold (excluding depreciation and amortization) reported in Condensed Consolidated Statement of Earnings $ 798,110 $ 603,414 $3,093,191 $2,186,070 =============================================================================================================== Our refining margin per barrel is calculated by subtracting cost of products from net sales and dividing the result by the number of barrels sold for the period. Our fuel margin per gallon is calculated by subtracting cost of fuel sold from fuel sales and dividing the result by the number of gallons sold for the period. We use refining margin per barrel and fuel margin per gallon to evaluate performance, and allocate resources. These measures may not be comparable to similarly titled measures used by other companies. Investors and analysts use these financial measures to help analyze and compare companies in the industry on the basis of operating performance. These financial measures should not be considered as alternatives to segment operating income, revenues, costs of sales and operating expenses or any other measure of financial performance presented in accordance with accounting principles generally accepted in the United States of America.