Susser 2Q 2012 Preliminary Results 'In Excess of Company's Expectations'

Published in CSP Daily News

Announces secondary offering of common stock by Wellspring

CORPUS CHRISTI, Texas -- Susser Holdings Corp. has provided partial preliminary financial and operating results for the second quarter of 2012. The preliminary merchandise same-store sales growth, retail average per-store fuel volume growth and retail and wholesale fuel margin results are generally in excess of the company's expectations, it said.

For the quarter ended July 1, 2012, the company expects to report:

  • Same-store merchandise sales growth of approximately 8% year-over-year, versus growth of 5.8% for the year-earlier period.
  • Total merchandise sales of approximately $253 million, up 11.8% from a year ago.
  • Average merchandise margin of 33.9% to 34.3%, versus 34% in second-quarter 2011.
  • Retail average per-store fuel volume growth of approximately 8% year-over-year, versus growth of 3.6% for the prior-year period.
  • Retail fuel margin of approximately 32.1 to 32.6 cents per gallon, compared with 31.2 cents per gallon a year ago.
  • Wholesale fuel margin of approximately 6.9 to 7.4 cents per gallon, versus 7 cents per gallon in the year-ago period.
  • Total retail fuel sold of approximately 215 million gallons, up 10.7% from a year ago.
  • Total wholesale fuel sold of approximately 153 million gallons, up 19.8% from a year earlier.
  • *Consolidated gross profit of approximately $177 million to $182 million, versus $158.9 million a year ago.
  • Total selling, general and administrative (SG&A) expense of approximately $106 million to $111 million, versus $99.1 million in the second quarter of last year.

The company expects these results will exert upward pressure on corresponding full-year 2012 guidance ranges, and it plans to reassess those guidance ranges in connection with its definitive earnings release scheduled for Aug. 8, 2012; however, the company is still evaluating these preliminary second quarter results.

The company opened six new large-format Stripes convenience stores and closed one smaller store during the second quarter for a total of 545 stores as of July 1. One additional store has opened during the third quarter, bringing the number of new Stripes stores constructed year-to-date to eight. The company currently has 11 additional retail stores under construction and expects to build a total of 25 to 30 in fiscal 2012. The company expects to build 28 to 35 sites in 2013 and continues to invest in its land bank for future development.

In addition, seven new wholesale dealer sites were added during the latest quarter, and seven were discontinued for a total of 567 contracted branded dealer and consignment locations as of July 1. Year-to-date, the company has added 14 new dealer sites and discontinued 12.

Susser Holdings also announced the commencement of an underwritten public secondary offering by its largest shareholder, New York City-based Wellspring Capital Management of four million of its shares of Susser Holdings common stock. In connection with the offering, Wellspring will grant the underwriters an option to purchase up to 600,000 additional shares.

Susser will not receive any proceeds from the offering, and its total number of shares outstanding--which were 20,956,237 as of July 1, 2012--will not change as a result of the offering.

Wellspring acquired its position in the company as part of a recapitalization of Susser Holdings in 2005 and has not sold any shares of Susser stock since that time.

Corpus Christi, Texas-based Susser is a third-generation, family-led business with approximately 1,100 company-operated or contracted locations. It operates approximately 545 c-stores in Texas, New Mexico and Oklahoma under the Stripes banner. Restaurant service is available in more than 335 of its stores, primarily under the proprietary Laredo Taco Co. brand. The company also supplies branded motor fuel to approximately 565 independent dealers through its wholesale fuel division.