Susser Reports Q2 Results

Susser Holdings Corp. posted a second-quarter loss on debt-refinancing impacts but also reported stronger merchandise and fuel sales.

Its same-store merchandise sales for the second quarter of 2010 increased by 3.1%, compared with growth of 2.5% in the first quarter of 2010 and 4.6% in the second quarter of 2009.  Retail merchandise margin increased to 33.9%, versus 32.7% in the prior quarter and 33.3% a year ago.  Retail fuel margins increased to 24.8 cents per gallon, versus 11.1 cents in the first quarter and 15.2 cents a year ago.

“Results for both merchandise and fuel were particularly strong in our West Texas markets, which are benefiting from continuing increases in oil drilling activity in the Permian Basin, said President and Chief Executive Sam Susser. “In addition, the ongoing rebranding of Town & Country stores to the Stripes brand is continuing to have a positive effect on the results from our West Texas convenience stores.”

Gasoline prices were higher than prior-year levels, allowing the sector to beef up margins.

Susser reported a loss of $1.9 million, or 11 cents a share, compared with a prior-year profit of $2.2 million, or 13 cents a share. The latest period included 93 cents in charges related to debt refinancing and repayments. Revenue jumped 24% to $1.02 billion. Gross margin was flat at 13.1%, the Wall Street Journal reported.

Analysts polled by Thomson Reuters most recently forecast earnings of 20 cents on revenue of $988 million. Shares closed Tuesday at $11.64 and were inactive premarket, according to the Wall Street Journal. The stock is up 35% this year.

“We are continuing to focus on expense control throughout the company, and to leverage our purchasing power across the regions to reduce our cost of sales. Although the Texas economy continues to be challenged by the lingering effects of a national recession, our results suggest that our long-term investments in technology, superior real estate and training of our team members is paying off, and this past quarter’s performance was tremendous.  I want to say thanks to our team for the significant improvements over the past six months,” Susser said.

 

 

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