Susser Holdings Turns To Profit In Q2 - Update

(RTTNews) - Convenience stores operator Susser Holdings Corp. (SUSS), which is on a proposed merger with Dallas-based Energy Transfer Partners, L.P. (ETP), Friday reported a profit for the second quarter compared to a loss last year, reflecting about 20 percent growth in revenues.

On April 28, Energy Transfer Partners had entered into a definitive merger agreement to acquire Susser Holdings in a unit and cash transaction valued at a total consideration of about $1.8 billion.

By acquiring Susser, Energy Transfer Partners or ETP will own the general partner interest and the incentive distribution rights in Susser Petroleum Partners LP (SUSP), around 11 million SUSP common units, and SUSS' existing retail operations, consisting of 630 convenience store locations.

For the second quarter, Susser Holdings' net income attributable to the company was $12.33 million or $0.56 per share, compared with a net loss of $4.26 million or $0.20 per share last year.

The recent-quarter results included impact of $3.1 million of pre-tax charges related to the proposed merger with a unit of Energy Transfer Partners, L.P. The prior year included impact of a $26.2 million debt refinancing charge.

Excluding charges, adjusted earnings were $0.66 per share, while the firm posted $0.59 per share in 2013.

On average, seven analysts polled by Thomson Reuters expected earnings per share of $0.93 for the quarter. Analysts' estimates typically exclude one-time items.

Revenues climbed 19.7 percent to $1.87 billion from $1.57 billion a year ago. Analysts estimated revenues of $1.79 billion.

Revenue increase reflected a 15.8 percent increase in merchandise sales, a 15 percent rise in retail fuel sales and a 30.5 percent growth in wholesale fuel sales to third parties.

Same-store merchandise sales, which included the Easter holiday, rose 4 percent, compared with a growth of 2.2 percent in the year-ago period.

Sam Susser, chairman, president and chief executive officer said, "As expected, same-store merchandise sales growth was strong, in part due to the contribution of the Easter holiday sales activity in the second quarter. Sales from our propriety Laredo Taco Company restaurant concept continue to be a strong driver of same-store performance."

The company said it is on track to complete its previously announced merger with ETP in the third quarter of this year.

Susser Holdings said its results included results of Susser Petroleum Partners, a wholesale distributor of motor fuels.

Susser Petroleum Partners reported second-quarter net income of $9.6 million or $0.43 per unit, compared to $9.7 million or $0.44 per unit in the prior year. Revenues totaled $1.4 billion, a 22.8 percent increase from $1.1 billion last year.

SUSS closed Thursday's regular trading at $79.95 on the NYSE, while SUSP ended at $51.38.