Delek Exceeds 50-Store Mark in Mega Expansion
BRENTWOOD, Tenn. – Delek US Holdings Inc. ended a challenging 2013 with fewer convenience stores than it started the year with, but the parent company of MAPCO did still manage to break the 50-store mark in the ongoing expansion of its large-format "mega store" concept.
During its fourth-quarter and full-year 2013 earnings call this morning, Delek US executives said the company plans to continue its retail growth both in terms of store size and store count during this new year. "We continue to focus on our initiative of building large-format stores and completed 10 during 2013," one company official reported during the call. Four of the 10 stores opened during the fourth quarter.
The retailer finished 2013 with 53 large-format stores. The goal for 2014 is to add 10 to 15 more stores of this size. Delek US operates convenience stores and gas stations under the MAPCO Express, MAPCO Mart, East Coast, Fast Food and Fuel, Favorite Markets, Delta Express and Discount Food Mart banners.
Despite its large-format expansion, Delek ended 2013 with a total of 361 stores in operation, down from 373 at the conclusion of 2012.
Its retail division earned $7.1 million during Q4, compared to $8.7 million a year ago. Operating expenses were $33.6 million compared to $32 million.
Merchandise sales for the fourth quarter were $93.6 million, down from $102 million during Q3 but up from $90.4 million one year earlier. Merchandise margin reached 28 percent, up from 27.6 percent during Q3 but down from 29.6 percent a year ago. Same-store sales grew 3.9 percent, up from 0.8-percent growth one year ago.
Fuel margin increased slightly year over year from 13.8 cents to 14.2 cents per gallon.
Companywide, Delek US reported a net loss of $4.7 million for the fourth quarter, compared to net income of $64.3 million in the year-ago period. For the full year, the company reported net income of $117.7 million, compared to $272.8 million during 2012.
"We faced a range of market conditions during 2013, from a strong first half of the year to a much more challenging second half. While markets have continued to change, our focus has remained on the execution of our strategy to increase flexibility, as well as the continued growth of our company," said Chairman, President and CEO Uzi Yemin.