United Refining Company Announces Results of the Third Fiscal Quarter Ended May 31, 2008



    WARREN, Pa., July 14 /CNW/ -- United Refining Company, a leading regional
refiner and marketer of petroleum products today reported results for the
third fiscal quarter and nine month period ended May 31, 2008.
    Net sales for the three months ended May 31, 2008 were a record high for
the Company at $788.9 million compared to $587.3 million for the prior year
quarter.  This was an increase of $201.6 million or 34.3% from the prior year
quarter.  This record revenue for the quarter was primarily attributed to the
increase in selling prices of petroleum products coupled with an increase in
both wholesale and retail petroleum sales volumes as well as an increase in
retail merchandise sales.  Net sales for the nine months ended May 31, 2008
and 2007 were $2,146.2 million and $1,664.7 million, respectively, which was
an increase of $481.5 million or 28.9% from the prior year period.
    Net income for the nine months ended May 31, 2008 and 2007 was $7.9
million and $28.5 million respectively.  This was a decrease of $20.6 million
from the prior nine month period.  Net income for the three months ended May
31, 2008 and 2007 was $4.3 million and $32.4 million respectively.  This was a
decrease of $28.1 million from the prior year quarter.
    EBITDA for the nine months ended May 31, 2008 and 2007 was $57.3 million
and $80.4 million respectively.  This was a decrease of $23.1 million from the
prior year nine month period.  Earnings before interest, taxes, depreciation
and amortization (EBITDA) for the three months ended May 31, 2008 and 2007
were $21.9 million and $66.2 million respectively.  This was a decrease of
$44.3 million from the prior year quarter.
    United Refining Company (http://www.urc.com) uses the term EBITDA or
earnings before interest, income taxes, depreciation and amortization.  EBITDA
is a term not defined under United States Generally Accepted Accounting
Principles.  The Company uses the term EBITDA because it is a widely accepted
financial indicator utilized to analyze and compare companies on the basis of
operating performance and is used to calculate certain debt coverage ratios
included in several of the Company's debt agreements.  See reconciliation of
EBITDA to Net Income in Footnote (1) in table set forth below.  The Company's
method of computation of EBITDA may or may not be comparable to other
similarly titled measures used by other companies.



    
                           UNITED REFINING COMPANY
                                 (Unaudited)
    

    
                           Three Months Ended         Nine Months Ended
                           May 31,      May 31,      May 31,      May 31,
                            2008         2007         2008         2007
                                       (dollars in thousands)
    

    
    Net Sales             $788,949     $587,298   $2,146,235   $1,664,675
    Operating Income       $15,645      $60,813      $36,304      $65,007
    Net Income              $4,251      $32,366       $7,925      $28,497
    Income Tax Expense      $2,955      $22,494       $5,508      $19,804
    EBITDA (1)             $21,925      $66,173      $57,273      $80,416
    


    
    (1) EBITDA Reconciliation:
    


    
                            EBITDA Reconciliation
                                 (Unaudited)
    

    
                            Three Months Ended         Nine Months Ended
                            May 31,      May 31,      May 31,      May 31,
                             2008         2007         2008         2007
                                       (dollars in thousands)
    

    
    Net Income              $4,251      $32,366       $7,925      $28,497
    Interest Expense         9,266        6,965       27,595       19,060
    Income Tax Expense       2,955       22,494        5,508       19,804
    Depreciation             4,058        3,470       12,138       10,447
    Amortization             1,395          878        4,107        2,608
    

    
    EBITDA                $ 21,925      $66,173     $ 57,273      $80,416
    
    United operates a 70,000 bpd refinery in Warren, Pennsylvania.  In
addition to its wholesale markets, the Company also operates 369 Kwik Fill(R)
/ Red Apple(R) and Country Fair(R) retail gasoline and convenience stores
located primarily in western New York and western Pennsylvania.
    Certain statements contained in this release are forward looking, such as
statements regarding the Company's plans and strategies or future financial
performance.  Although the Company believes that its expectations are based on
reasonable assumptions within the bounds of its knowledge, investors and
prospective investors are cautioned that such statements are only projections
and that actual events or results may differ materially from those expressed
in any such forward-looking statements.  In addition, the Company's actual
consolidated quarterly or annual operating results have been affected in the
past, or could be affected in the future, by additional factors, including,
without limitation, general economic, business and market conditions;
environmental, tax and tobacco legislation or regulation; volatility of
gasoline prices, margins and supplies; merchandising margins; customer
traffic, weather conditions; labor costs and the level of capital
expenditures.




For further information:

For further information: James E. Murphy, Chief Financial Officer of
United Refining Company, +1-814-723-1500 Web Site: http://www.urc.com

Organization Profile

United Refining Company

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890