Murphy USA Inc. (MUSA) Reports Solid Q4 and Full Year 2023 Financial Results
Net Income: Q4 net income increased to $150.0 million, with full-year net income at $556.8 million.
Fuel Contribution: Total fuel contribution for Q4 was 32.5 cents per gallon, with a yearly average of 31.4 cents per gallon.
Retail Gallons: Stable at 1.2 billion in Q4, with a slight decline in same store sales.
Merchandise Contribution: Grew by 4.6% in Q4 to $197.7 million, with a full-year increase of 4.7%.
Share Repurchase: Approximately 442.2 thousand shares repurchased in Q4; over 1 million shares in full year 2023.
Store Openings: 10 new stores in Q4, bringing the total count to 1,733 by year-end.
Dividends: Quarterly cash dividend paid at $0.41 per share, with an annual increase of 11.7%.
On February 7, 2024, Murphy USA Inc (NYSE:MUSA) released its 8-K filing, announcing its financial results for the fourth quarter and full year ended December 31, 2023. The company, a prominent retailer of gasoline products and convenience merchandise, operates a network of retail stations across the United States, with a significant number of stores adjacent to Walmart locations.
Fiscal Performance Highlights
Murphy USA Inc (NYSE:MUSA) reported a net income of $150.0 million, or $7.00 per diluted share, for the fourth quarter of 2023, an increase from the $117.7 million, or $5.21 per diluted share, recorded in the same quarter of the previous year. For the full year, net income was $556.8 million, or $25.49 per diluted share, compared to $672.9 million, or $28.10 per diluted share, in 2022. The company's total fuel contribution for the fourth quarter was 32.5 cents per gallon (cpg), up from 30.6 cpg in the prior year's quarter. However, the full-year fuel contribution averaged 31.4 cpg, down from 34.3 cpg in 2022.
Despite a challenging environment, Murphy USA maintained stable retail gallon sales at 1.2 billion for both the fourth quarter and the full year, matching the previous year's figures. However, same store sales (SSS) volumes saw a slight decline of 2.0% for the quarter and 1.8% for the year. The merchandise contribution for the fourth quarter increased by 4.6% to $197.7 million, with unit margins holding steady at 19.4%, reflecting a consistent performance in merchandise sales.
Strategic and Operational Developments
President and CEO Andrew Clyde highlighted the company's robust operational performance and strategic initiatives, stating,
2023 financial results and operational performance are a testament to the strong foundations we have built at Murphy USA over the last decade, successfully executing against our strategy, and widening our advantage in the marketplace."
Clyde emphasized the company's focus on new store growth, continuous improvement, and investment in people, technology, and innovation to drive in-store performance.
The company continued its share repurchase program, buying back approximately 442.2 thousand common shares for $162.0 million in the fourth quarter, and over 1.0 million shares for a total of $336.2 million for the full year. This reflects Murphy USA's commitment to returning value to shareholders.
Murphy USA also expanded its store portfolio, opening 10 new stores in the fourth quarter, resulting in a net year-end total of 1,733 stores. The company's capital allocation strategy remains focused on growth, with a strong and agile balance sheet supporting these efforts.
Financial Position and Outlook
As of December 31, 2023, Murphy USA reported cash and cash equivalents of $117.8 million, with total marketable securities of $11.5 million. The company's long-term debt stood at $1,784.7 million. The effective income tax rate for the fourth quarter was 23.6%, slightly up from 22.3% in the previous year's quarter.
Looking ahead, Murphy USA provided guidance for 2024, anticipating sustained growth in new store additions and investments in raze-and-rebuild sites. The company expects to maintain market share gains and foresees modest growth in store operating expenses per site, excluding credit card fees and rent. SG&A costs are projected to reflect continued investments in productivity initiatives, with an effective tax rate expected to be in the range of 24% to 26%.
For detailed financial tables and further discussion of Murphy USA's financial performance, including reconciliations of non-GAAP financial measures, please refer to the full 8-K filing.
Investors and stakeholders are invited to join the earnings call on February 8, 2024, to discuss the Q4 and full-year results. The call will provide an opportunity to gain deeper insights into the company's financial health and strategic direction.
Murphy USA Inc (NYSE:MUSA) remains focused on delivering shareholder value and is poised to leverage its strong Q4 performance and strategic initiatives to drive continued success in 2024.
Explore the complete 8-K earnings release (here) from Murphy USA Inc for further details.
This article first appeared on GuruFocus.
