Murphy USA Inc. (MUSA) Misses Q4 EPS by 1c, Revenues Miss

Murphy USA Inc. (NYSE: MUSA) reported Q4 EPS of $2.16, $0.01 worse than the analyst estimate of $2.17. Revenue for the quarter came in at $2.86 billion versus the consensus estimate of $2.97 billion.

Key Highlights:

• Net income was $61.0 million, or $2.16 per diluted share, in Q4 2020 compared to net income of $47.6 million, or $1.54 per diluted share, in Q4 2019. This increase in net income was primarily due to higher total fuel and merchandise contributions. For the year 2020, net income was $386.1 million, or $13.08 per diluted share, compared to 2019 net income of $154.8 million, or $4.86 per diluted share.
• Total fuel contribution (retail fuel margin plus product supply and wholesale ("PS&W") results including RINs) for Q4 2020 was 19.8 cpg compared to 17.1 cpg in Q4 2019. For the year, total fuel contribution was 25.2 cpg in 2020 compared to 16.1 cpg in 2019.
• Total retail gallons decreased 5.5% for the network during Q4 2020 and volumes on a same store sales ("SSS") basis decreased 6.7%, while for the year, retail gallons decreased 10.8% to 3.9 billion gallons and decreased 12.3% on a SSS basis.
• Merchandise contribution dollars grew 9.7% during Q4 2020 to $115.4 million. For the full year, merchandise contribution dollars were up 9.5% to $459.4 million on average unit margins of 15.6%.
• During Q4 2020, 15 new stores opened and 20 raze-and-rebuild sites re-opened. For the year, 24 new stores were opened and 33 raze-and-rebuild locations re-opened while 10 stores were sold or closed. The year-end store count was 1,503.
• Paid the initial quarterly dividend, announced in October 2020, of $0.25 per share on December 1, 2020, for a total of approximately $7.0 million.
• Common shares repurchased during Q4 2020 were 1.3 million for $169.1 million at an average price of $128.17 per share. For the year, 3.3 million shares were repurchased for $399.6 million at an average of $119.70 per share.
• Announced the agreement to acquire Quick Chek Corporation ("QuickChek"), in an all-cash transaction for approximately $645 million before working capital adjustments and other items. The transaction closed on January 29, 2021.

"After an unprecedented year that showcased both the agility and resiliency of our business, we are excited to turn the page and continue executing against our strategic agenda in 2021," said President and CEO Andrew Clyde. "The momentum of our existing network, complemented by the new and distinctive capabilities of QuickChek, highlight the potential of the combined business as we take the next steps to create long-term value for shareholders."

For earnings history and earnings-related data on Murphy USA Inc. (MUSA) click here.

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