susser shows secondquarter growth

Strong margins shown for the fiscal year.

Susser Holdings Corp. has revealed the financial results for the second quarter of 2007, reporting earnings that raised 67% from last year, helped by better-than-expected retail fuel margins and good gains in merchandise sales, both overall and on a same-store basis. The company also raised its merchandise same-store sales growth for fiscal 2007.

Net income for the second quarter was $6.3 million, up 67% from $3.8 million in the prior year quarter

The Corpus Christi, Texas-based company’s total revenues increased 6.7% to $692.8 million from $649.2 million in the same quarter of last year. Two analysts had consensus revenue estimate of $669.53 million for the second quarter.

Merchandise sales rose 11.8% to $105.9 million from $94.7 million in the previous year quarter. Motor fuel sales were $580.6 million, up from $548.5 million in the preceding year quarter.

Gross profit improved 8.2% to $64.6 million from $59.7 million in the second quarter of 2006.

Total revenues for the year-to-date period increased 4.2% to $1.22 billion from $1.17 billion in the preceding year period. For fiscal 2007, the company raises its merchandise same-store sales growth outlook to a range of 4.5% to 6.5% from previous expectation of 4% to 5%. The company still expects new retail stores to be 18 to 22 and new wholesale dealer sites of 25 to 35.

“Better-than-expected retail fuel margins and good gains in merchandise sales, both overall and on a same-store basis, drove these strong second-quarter results,” Sam L. Susser, Susser Holdings president and CEO, said in a prepared statement.

“Performance from our Laredo Taco Company restaurant business continues to be very strong, and we opened six new kitchens during the quarter. We also continue to see great customer response to the re-brandings of our convenience stores to our own Stripes brand and our fuel islands to the Valero brand, which we completed earlier in the year.”

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