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8-K - FORM 8-K - Susser Holdings CORPd8k.htm

Exhibit 99.1

 

LOGO   

NEWS RELEASE

  

Contacts:

  

Susser Holdings Corporation

     

Mary Sullivan, Chief Financial Officer

     

(361) 693-3743, msullivan@susser.com

FOR IMMEDIATE RELEASE      
     

DRG&L

     

Ken Dennard, Managing Partner

     

(713) 529-6600, ksdennard@drg-l.com

     

Anne Pearson, Senior Vice President

     

(210) 408-6321, apearson@drg-l.com

Susser Holdings Reports Fourth Quarter and Full Year 2010 Results

 

   

4Q same-store merchandise sales up 7.3%

 

   

Adjusted EBITDA(1) of $24.1 million, up 61.3%

 

   

Gross profit of $112.2 million, up 9.4%

CORPUS CHRISTI, Texas, February 24, 2011 – Susser Holdings Corporation (NASDAQ: SUSS) today reported that same-store merchandise sales for the fourth quarter of 2010 increased by 7.3 percent, compared with growth of 3.4 percent in the third quarter and a decline of 1.2 percent in the fourth quarter of 2009. Retail net merchandise margin for the three months ended January 2, 2011, was 33.8 percent, which was unchanged from the prior quarter but up from 32.7 percent a year earlier. Average retail gallons per store per week increased 4.3 percent from a year ago. Retail fuel margins for the fourth quarter were 15.0 cents per gallon, versus 22.8 cents in the third quarter and 11.9 cents in the fourth quarter of 2009.

Adjusted EBITDA(1) in the fourth quarter totaled $24.1 million, compared with $15.0 million a year ago, an increase of 61.3 percent, which is the result of increased same-store merchandise sales and higher fuel and merchandise margins versus a year ago, combined with targeted expense reductions. (Note that the fourth quarter of 2009 included one additional week of operations, which we estimate contributed approximately $1.7 million to $1.8 million of additional Adjusted EBITDA for the prior year.) Companywide gross profit totaled $112.2 million, up 9.4 percent compared to last year’s fourth quarter.

Total revenues increased 9.4 percent versus the fourth quarter of last year to $1.0 billion, which reflects a 12.2 percent increase in combined retail and wholesale fuel revenues, partly offset by a 0.7 percent decrease in total merchandise sales. The lower merchandise sales in 2010 are primarily due to the impact of the 14th week of sales in the fourth quarter of 2009, which increased prior-year merchandise sales and operating expenses by approximately $14.0 million and $4.5 million, respectively.


 

Susser Holdings Corporation – Page 2

 

Net loss totaled $1.3 million in the fourth quarter, or $0.07 per diluted share, compared with a net loss of $5.7 million, or $0.33 per diluted share a year ago. Fourth quarter net results included several unusual items, impacting after-tax earnings by a total of $2.2 million, or $0.13 per diluted share. These after-tax charges included $1.5 million ($0.09 per diluted share) for net loss on disposal of property that was sold or retired and impairments of closed sites and excess properties, and net tax provision true-up charges of $0.7 million ($0.04 per diluted share). Excluding these items, net income and EPS would have been $0.9 million and $0.06 per diluted share, respectively.

“Following a challenging 2009, we set a new all-time record for Adjusted EBITDA in fiscal 2010, driven by unusually strong fuel margins, steady same-store growth in merchandise sales and careful expense control,” said Sam L. Susser, President and Chief Executive Officer.

“For the fourth quarter, we continued to improve both same-store merchandise sales and fuel volumes, which reflect the strengthening economy in the markets directly impacted by oil and gas drilling activity and strong agricultural commodity prices, as well as the success of rebranding the legacy Town & Country stores to the Stripes® banner. We also benefitted from the positive contribution of 26 new retail sites and 93 new wholesale sites added in 2009 and 2010, along with effective merchandising and operational execution.

“We continued to see improving trends in both customer counts and average transaction size during the fourth quarter. As the recovery gains momentum in 2011, we expect to see additional growth in both merchandise and fuel volumes, although we do not expect to match the unusually strong fuel margins of 2010. Our effective cost control and technology investments continued to benefit our bottom line during the fourth quarter, despite the impact of the extra week that was included in 2009 comparative results.

“We are extremely well positioned for growth geographically. Several of our market areas enjoy some of the best demographics for growth of anywhere in the United States. We feel better about the local economies today than we did a year ago, and we remain confident of our long-term positive outlook for investment in this region,” he said.

New Convenience Store/Wholesale Dealer Site Update

The Company added seven large format retail stores during the fourth quarter, converted three retail stores to dealer operations and closed three smaller underperforming stores, bringing the total number of retail stores in operation at year-end to 526. For the full year, the Company built 12 new stores and acquired two others. The Company has six stores under construction, two of which are expected to open during the first quarter of 2011.


 

Susser Holdings Corporation – Page 3

 

In its wholesale operations, Susser added 51 new dealer sites during the fourth quarter, including 39 acquired in October, and discontinued supplying three sites. For the full year, the Company added 59 dealer sites and discontinued supplying 18 sites, for a total of 431 in operation at the end of 2010.

Financing Update

During the fourth quarter, the Company generated $15.3 million in proceeds from sale-leaseback transactions for five recently constructed stores. For the full year, Susser completed sale-leaseback transactions totaling $32.3 million.

Fourth Quarter Financial and Operating Highlights

Merchandise - Total Company merchandise sales were $199.9 million, an increase of 9.7 percent from a year ago, excluding the impact of the extra week of sales in 2009 and the seven Village Market grocery stores divested in May 2010. Merchandise sales decreased by 0.7 percent from a year ago on a reported basis. Same-store merchandise sales increased by 7.3 percent, versus a decrease of 1.2 percent in the fourth quarter of 2009.

Excluding the impact of the 2009 extra week and the Village Market divestiture, 2010 fourth quarter merchandise gross profit, net of shortages, increased 12.5% to $67.6 million and was up 2.6 percent on a reported basis. Net merchandise margin was 33.8 percent, compared with 32.7 percent a year ago. The increase in merchandise gross profit is primarily due to increased contributions from food service, packaged drinks, snacks and candy.

Retail Fuel - Retail fuel volumes increased 4.8 percent from a year ago to 182.4 million gallons for the fourth quarter, excluding the impact of gallons sold in the extra week in 2009 and the divested Village Market units. Average gallons sold per store per week increased 4.3 percent from a year ago to 26,900 gallons. Retail fuel revenues totaled $507.7 million, up 9.6 percent primarily as a result of a 30-cent-per-gallon increase in motor fuel prices at the pump. Retail fuel gross margin in the fourth quarter averaged 15.0 cents per gallon, or 10.4 cents per gallon after deducting credit card expense, compared to 11.9 cents a gallon, or 8.2 cents after credit card expense, a year ago. Retail fuel gross profit increased 23.0 percent year-over-year to $27.3 million.

Wholesale Fuel - Wholesale fuel volumes sold to Susser’s approximately 430 dealers and other third-party customers during the fourth quarter rose 1.6 percent from a year ago to 123.3 million gallons. Wholesale fuel revenues increased by 17.1 percent to $288.5 million as a result of a 31-cent-a-gallon increase in selling prices year-over-year. Wholesale gross margin was 5.1 cents per gallon, compared with 3.7 cents per gallon a year ago. This increased wholesale fuel gross profit by 37.5 percent to $6.2 million.


 

Susser Holdings Corporation – Page 4

 

Full Year Results

For the full year 2010 ended January 2, 2011, Susser reported same-store merchandise sales growth of 4.0 percent and total merchandise sales of $806.3 million, up 6.5 percent from fiscal 2009, excluding the impact of the 53rd week of merchandise sales in 2009 and the divested Village Market sales. On a reported basis, total merchandise sales increased by 2.8 percent. Merchandise margin was 33.6 percent for the full year, versus 33.3 percent for fiscal 2009.

Adjusted EBITDA(1) reached a record $120.0 million, up 30.1 percent from 2009. Gross profit increased 10.7 percent to $473.1 million, driven primarily by the 29 percent increase in gross profit on both retail and wholesale fuel as well as slightly higher merchandise gross profit. Total revenues were $3.9 billion, up 18.8 percent, primarily as a result of higher fuel selling prices as well as increased merchandise sales.

Net income for the year was reported at $786,000 or $0.05 per diluted share. Excluding the effect of after-tax charges totaling $15.7 million related to the refinancing and early retirement of debt in the second quarter, adjusted net income was a record $16.5 million, or $0.96 per share, compared with earnings of $2.1 million, or $0.12 per diluted share in fiscal 2009. Also impacting full-year 2010 results were unusual after-tax charges of $2.1 million ($0.12 per diluted share) for net loss on disposal of property and impairments of closed sites and excess properties, and $2.1 million ($0.12 per diluted share) for net tax provision true-up charges. Excluding these unusual items, net income and EPS for 2010 would have been $20.7 million and $1.20 per diluted share, respectively. A reconciliation of reported to adjusted earnings is provided later in this news release.


 

Susser Holdings Corporation – Page 5

 

2011 Guidance

The Company has provided initial guidance for 2011 as follows:

 

     FY 2010
Actual  Results
    FY 2011
Guidance

Merchandise Same-Store Sales Growth

     4.0   2.0%-4.5%

Merchandise Margin, Net of Shortages

     33.6   33.25%-34.25%

Retail Average Per-Store Gallons Growth

     2.5   1.0%-4.0%

Retail Fuel Margin (cents/gallon) (a)

     18.4      14.0-17.0

Wholesale Fuel Margin (cents/gallon)

     5.3      4.0-6.0

Rent Expense ($ million) (d)

     $43      $45-$47

Depreciation & Amortization Expense ($ million) (d)

     $44      $45-$50

Interest Expense ($ million) (d) (e)

     $40      $40-$42

New Retail Stores (b)

     14      18-22

New Wholesale Dealer Sites (b)

     59      15-30

Gross Capital Spending ($ million)

     $89      $100-$125

Net Capital Spending ($ million) (c) (d)

     $48      $80-$120

 

(a) We report retail fuel margin before deducting credit card costs, which were approximately 4.4 cents per gallon for the full 2010 fiscal year. For 2010, the average retail selling price of fuel was $2.70 per gallon.
(b) Numbers for both years do not reflect existing retail or wholesale store closures, which are typically lower volume locations than new sites.
(c) Net capital spending is gross capital expenditures including acquisitions, less proceeds from sale/leaseback transactions and asset dispositions. The Company does not provide guidance on potential acquisitions.
(d) Assumes $5 to $20 million of new store capex is lease financed and $20 to $40 million is financed with long-term mortgage debt.
(e) 2010 interest expense excludes $24.2 million of non-recurring charges related to debt refinancing.

 

(1) Adjusted EBITDA is a non-GAAP financial measure of performance and liquidity that has limitations and should not be considered as a substitute for net income or cash provided by (used in) operating activities. Please refer to the discussion and tables under “Reconciliations of Non-GAAP Measures” later in this news release for a discussion of our use of adjusted EBITDA and a reconciliation to net income (loss) attributable to Susser Holdings Corporation and cash provided by operating activities for the periods presented.

Fourth Quarter Earnings Conference Call

Susser’s management team will hold a conference call today at 10:00 a.m. ET (9:00 a.m. CT) to discuss fourth quarter results. To participate in the call, dial 480-629-9724 at least 10 minutes early and ask for the Susser conference call. The call will also be accessible via Susser’s Web site at www.susser.com. To listen live, please visit the Investor Relations page. A telephone replay will be available through March 3 by calling 303-590-3030 and using the pass code 4411863#. An archive will be available for 60 days on Susser’s web site.


 

Susser Holdings Corporation – Page 6

 

Corpus Christi, Texas-based Susser Holdings Corporation is a third-generation family led business that operates more than 525 convenience stores in Texas, New Mexico and Oklahoma primarily under the Stripes® banner. Restaurant service is available in more than 310 of its stores, primarily under the proprietary Laredo Taco Company® brand. The Company also supplies branded motor fuel to more than 430 independent dealers through its wholesale fuel division.

Forward-Looking Statements

This news release contains “forward-looking statements” describing Susser’s objectives, targets, plans, strategies, costs, anticipated capital expenditures, expansion of our food service offerings, potential acquisitions and new store openings and dealer locations. These statements are based on current plans and expectations and involve a number of risks and uncertainties that could cause actual results and events to vary materially, including but not limited to: competition from other convenience stores, gasoline stations, dollar stores, drug stores, supermarkets, hypermarkets and other wholesale fuel distributors; changes in economic conditions; volatility in energy prices; political conditions in key crude oil producing regions; wholesale cost increases of tobacco products; adverse publicity concerning food quality, food safety or other health concerns related to our restaurant facilities; consumer or other litigation; consumer behavior, travel and tourism trends; devaluation of the Mexican peso or restrictions on access of Mexican citizens to the U.S.; unfavorable weather conditions; changes in state and federal regulations; dependence on two principal suppliers for merchandise, two principal suppliers for gasoline and one principal provider for transportation of substantially all of our motor fuel; financial leverage and debt covenants; changes in debt ratings; inability to identify, acquire and integrate new stores; dependence on senior management; acts of war and terrorism; and other unforeseen factors. For a full discussion of these and other risks and uncertainties, refer to the “Risk Factors” section of the Company’s annual report on Form 10-K for the year ended January 2, 2011, which will be filed on or before March 18, 2011. These forward-looking statements are based on and include our estimates as of the date hereof. Subsequent events and market developments could cause our estimates to change. While we may elect to update these forward-looking statements at some point in the future, we specifically disclaim any obligation to do so, even if new information becomes available, except as may be required by applicable law.

Financial statements follow


 

Susser Holdings Corporation – Page 7

 

Susser Holdings Corporation

Consolidated Statements of Operations

 

     Three Months Ended     Twelve Months Ended  
     January 3,
2010
    January 2,
2011
    January 3,
2010
    January 2,
2011
 
     (dollars in thousands, except per share amounts)  

Revenues:

        

Merchandise sales

   $ 201,375      $ 199,920      $ 784,424      $ 806,252   

Motor fuel sales

     709,654        796,171        2,481,459        3,081,351   

Other income

     10,205        11,458        41,425        43,027   
                                

Total revenues

     921,234        1,007,549        3,307,308        3,930,630   

Cost of sales:

        

Merchandise

     135,510        132,343        523,340        535,569   

Motor fuel

     682,900        762,604        2,356,231        2,919,722   

Other

     283        400        358        2,237   
                                

Total cost of sales

     818,693        895,347        2,879,929        3,457,528   
                                

Gross profit

     102,541        112,202        427,379        473,102   

Operating expenses:

        

Personnel

     39,619        37,504        149,879        149,894   

General and administrative

     8,467        9,033        34,372        36,699   

Other operating

     30,675        31,578        117,375        126,699   

Rent

     9,721        11,026        36,899        42,623   

Loss on disposal of assets and impairment charge

     1,360        2,329        2,402        3,193   

Depreciation, amortization and accretion

     12,386        10,911        44,382        43,998   
                                

Total operating expenses

     102,228        102,381        385,309        403,106   
                                

Income from operations

     313        9,821        42,070        69,996   

Other income (expense):

        

Interest expense, net

     (9,570     (10,094     (38,103     (64,039

Other miscellaneous

     (27     (49     (55     (174
                                

Total other expense, net

     (9,597     (10,143     (38,158     (64,213
                                

Income (loss) before income taxes

     (9,284     (322     3,912        5,783   

Income tax (expense) benefit

     3,625        (973     (1,805     (4,994
                                

Net income (loss)

     (5,659     (1,295     2,107        789   
                                

Less: Net income (loss) attributable to noncontrolling interests

     10        (30     39        3   
                                

Net income (loss) attributable to Susser Holdings Corporation

   $ (5,669   $ (1,265   $ 2,068      $ 786   
                                

Net income per share attributable to Susser Holdings Corporation:

        

Basic

   $ (0.33   $ (0.07   $ 0.12      $ 0.05   

Diluted

   $ (0.33   $ (0.07   $ 0.12      $ 0.05   

Weighted average shares outstanding:

        

Basic

     16,954,401        17,039,610        16,936,777        17,018,032   

Diluted

     16,954,401        17,039,610        17,022,003        17,185,383   


 

Susser Holdings Corporation – Page 8

 

Susser Holdings Corporation

Consolidated Balance Sheets

 

     January 3,
2010
    January 2,
2011
 
     (in thousands)  

Assets

    

Current assets:

    

Cash and cash equivalents

   $ 17,976      $ 47,943   

Accounts receivable, net of allowance for doubtful accounts of $903 at January 3, 2010 and $1,054 at January 2, 2011

     65,510        60,356   

Inventories, net

     78,788        84,140   

Other current assets

     9,507        17,517   
                

Total current assets

     171,781        209,956   

Property and equipment, net

     410,574        409,153   

Other assets:

    

Goodwill

     242,295        240,158   

Intangible assets, net

     33,144        41,365   

Other noncurrent assets

     15,224        13,707   
                

Total assets

   $ 873,018      $ 914,339   
                

Liabilities and shareholders’ equity

    

Current liabilities:

    

Accounts payable

   $ 129,425      $ 132,918   

Accrued expenses and other current liabilities

     33,812        44,937   

Current maturities of long-term debt

     10,545        550   
                

Total current liabilities

     173,782        178,405   

Revolving line of credit

     25,800        —     

Long-term debt

     384,574        430,756   

Deferred gain, long-term portion

     33,786        32,727   

Deferred tax liability, long-term portion

     28,846        39,261   

Other noncurrent liabilities

     15,812        18,627   
                

Total liabilities

     662,600        699,776   

Commitments and contingencies:

    

Shareholders’ equity:

    

Susser Holdings Corporation shareholders’ equity:

    

Common stock, $.01 par value; 125,000,000 shares authorized; 17,158,717 issued and 17,141,393 outstanding as of January 3, 2010; 17,402,934 issued and 17,361,406 outstanding as of January 2, 2011

     170        172   

Additional paid-in capital

     183,880        186,876   

Retained earnings

     25,956        26,742   

Accumulated other comprehensive loss

     (358     —     
                

Total Susser Holdings Corporation shareholders’ equity

     209,648        213,790   

Noncontrolling interest

     770        773   
                

Total shareholders’ equity

     210,418        214,563   
                

Total liabilities and shareholders’ equity

   $ 873,018      $ 914,339   
                


 

Susser Holdings Corporation – Page 9

 

Key Operating Metrics

The following table sets forth, for the periods indicated, information concerning key measures we rely on to gauge our operating performance:

 

     Three Months Ended     Twelve Months Ended  
     January 3,
2010
    January 2,
2011
    January 3,
2010
    January 2,
2011
 
     (14 weeks)     (13 weeks)     (53 weeks)     (52 weeks)  
     (dollars in thousands, except motor fuel pricing and gross
profit per gallon)
 

Revenue:

        

Merchandise sales

   $ 201,375      $ 199,920      $ 784,424      $ 806,252   

Motor fuel - retail

     463,266        507,677        1,605,534        1,987,072   

Motor fuel - wholesale

     246,388        288,494        875,925        1,094,279   

Other

     10,205        11,458        41,425        43,027   
                                

Total revenue

   $ 921,234      $ 1,007,549      $ 3,307,308      $ 3,930,630   

Gross profit:

        

Merchandise

   $ 65,865      $ 67,577      $ 261,084      $ 270,683   

Motor fuel - retail

     22,215        27,324        105,021        135,611   

Motor fuel - wholesale

     4,539        6,243        20,207        26,018   

Other

     9,922        11,058        41,067        40,790   
                                

Total gross profit

   $ 102,541      $ 112,202      $ 427,379      $ 473,102   

Adjusted EBITDA (a):

        

Retail

   $ 13,033      $ 18,902      $ 78,017      $ 104,027   

Wholesale

     3,216        5,667        19,572        21,499   

Other

     (1,276     (424     (5,341     (5,517
                                

Total Adjusted EBITDA

   $ 14,973      $ 24,145      $ 92,248      $ 120,009   

Retail merchandise margin

     32.7     33.8     33.3     33.6

Merchandise same store sales growth

     (1.2 )%      7.3     3.3     4.0

Average per retail store per week:

        

Merchandise sales

   $ 27.3      $ 29.3      $ 28.6      $ 29.6   

Motor fuel gallons

     25.8        26.9        26.7        27.3   

Motor fuel gallons sold:

        

Retail

     187,033        182,430        719,649        735,763   

Wholesale

     121,315        123,252        494,821        494,209   

Average retail price of motor fuel

   $ 2.48      $ 2.78      $ 2.23      $ 2.70   

Motor fuel gross profit cents per gallon:

        

Retail

     11.9 ¢      15.0 ¢      14.6 ¢      18.4 ¢ 

Wholesale

     3.7 ¢      5.1 ¢      4.1 ¢      5.3 ¢ 

 

(a) See following Reconciliation of Non-GAAP Measures to GAAP Measures.


 

Susser Holdings Corporation – Page 10

 

Net Income (Loss) Attributable to Susser Holdings Corporation

Impact of Non-Recurring or Unusual Items

 

     Three Months Ended     Twelve Months Ended  
     January 3, 2010     January 2, 2011     January 3, 2010      January 2, 2011  
     After-Tax
Income
(Loss)
    EPS     After-Tax
Income

(Loss)
    EPS     After-Tax
Income

(Loss)
     EPS      After-Tax
Income

(Loss)
     EPS  

As reported

   $ (5,669   $ (0.33   $ (1,265   $ (0.07   $ 2,068       $ 0.12       $ 786       $ 0.05   

May 2010 refinancing

     —          —          —          —          —           —           15,700         0.91   

Loss on disposal / impairment

     884        0.05        1,514        0.09        1,561         0.09         2,075         0.12   

Tax provision adjustments - permanent differences

     —          —          680        0.04        —           —           2,138         0.12   
                                                                   

As adjusted

   $ (4,785   $ (0.28   $ 929      $ 0.06      $ 3,629       $ 0.21       $ 20,699       $ 1.20   
                                                                   

Reconciliations of Non-GAAP Measures to GAAP Measures

We define EBITDA as net income (loss) attributable to Susser Holdings Corporation before net interest expense, income taxes and depreciation, amortization and accretion. Adjusted EBITDA further adjusts EBITDA by excluding non-cash stock-based compensation expense and certain other operating expenses that are reflected in our net income that we do not believe are indicative of our ongoing core operations, such as significant non-recurring transaction expenses and the gain or loss on disposal of assets and impairment charges. Adjusted EBITDAR adds back rent to Adjusted EBITDA. In addition, those expenses that we have excluded from our presentation of Adjusted EBITDA and Adjusted EBITDAR are also excluded in measuring our covenants under our debt agreements and indentures.

We believe that Adjusted EBITDA and Adjusted EBITDAR are useful to investors in evaluating our operating performance because:

 

   

they are used as a performance and liquidity measure under our revolving credit facility and the indenture governing our notes, including for purposes of determining whether they have satisfied certain financial performance maintenance covenants and our ability to borrow additional indebtedness and pay dividends;

 

   

securities analysts and other interested parties use such calculations as a measure of financial performance and debt service capabilities;

 

   

they facilitate management’s ability to measure the operating performance of our business on a consistent basis by excluding the impact of items not directly resulting from our retail convenience stores and wholesale motor fuel distribution operations;

 

   

they are used by our management for internal planning purposes, including aspects of our consolidated operating budget, capital expenditures, as well as for segment and individual site operating targets; and

 

   

they are used by our Board and management for determining certain management compensation targets and thresholds.


 

Susser Holdings Corporation – Page 11

 

EBITDA, Adjusted EBITDA and Adjusted EBITDAR are not recognized terms under GAAP and do not purport to be alternatives to net income as measures of operating performance or to cash flows from operating activities as a measure of liquidity. EBITDA, Adjusted EBITDA and Adjusted EBITDAR have limitations as analytical tools, and you should not consider them in isolation or as a substitute for analysis of our results as reported under GAAP. Some of these limitations include:

 

   

they do not reflect our cash expenditures, or future requirements, for capital expenditures or contractual commitments;

 

   

they do not reflect changes in, or cash requirements for, working capital;

 

   

they do not reflect significant interest expense, or the cash requirements necessary to service interest or principal payments on our revolving credit facility and our notes;

 

   

they do not reflect payments made or future requirements for income taxes;

 

   

although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and EBITDA, Adjusted EBITDA and Adjusted EBITDAR do not reflect cash requirements for such replacements; and

 

   

because not all companies use identical calculations, our presentation of EBITDA, Adjusted EBITDA and Adjusted EBITDAR may not be comparable to similarly titled measures of other companies.

The following table presents a reconciliation of net income (loss) attributable to Susser Holdings Corporation to EBITDA, Adjusted EBITDA and Adjusted EBITDAR:

 

     Three Months Ended     Twelve Months Ended  
     January 3,
2010
    January 2,
2011
    January 3,
2010
     January 2,
2011
 
     (in thousands)  

Net income (loss) attributable to Susser Holdings Corporation

   $ (5,669   $ (1,265   $ 2,068       $ 786   

Depreciation, amortization and accretion

     12,386        10,911        44,382         43,998   

Interest expense, net

     9,570        10,094        38,103         64,039   

Income tax expense (benefit)

     (3,625     973        1,805         4,994   
                                 

EBITDA

     12,662        20,713        86,358         113,817   

Non-cash stock based compensation

     924        1,054        3,433         2,825   

Loss on disposal of assets and impairment charge

     1,360        2,329        2,402         3,193   

Other miscellaneous expense

     27        49        55         174   
                                 

Adjusted EBITDA

     14,973        24,145        92,248         120,009   

Rent

     9,721        11,026        36,899         42,623   
                                 

Adjusted EBITDAR

   $ 24,694      $ 35,171      $ 129,147       $ 162,632   
                                 


 

Susser Holdings Corporation – Page 12

 

The following table presents a reconciliation of net cash provided by operating activities to EBITDA, Adjusted EBITDA and Adjusted EBITDAR:

 

     Twelve Months Ended  
     January 3,
2010
    January 2,
2011
 
     (in thousands)  

Net cash provided by operating activities

   $ 49,806      $ 97,636   

Changes in operating assets & liabilities

     3,025        (14,157

Loss on disposal of assets and impairment charge

     (2,402     (3,193

Non–cash stock based compensation

     (3,433     (2,825

Noncontrolling interest

     (39     (3

Deferred income tax

     (1,124     (11,032

Amortization of debt premium/(discount), net

     617        (193

Early extinguishment of debt

     —          (21,449

Interest expense, net

     38,103        64,039   

Income taxes

     1,805        4,994   
                

EBITDA

     86,358        113,817   

Non-cash stock based compensation

     3,433        2,825   

Loss on disposal of assets and impairment charge

     2,402        3,193   

Other miscellaneous

     55        174   
                

Adjusted EBITDA

     92,248        120,009   

Rent

     36,899        42,623   
                

Adjusted EBITDAR

   $ 129,147      $ 162,632   
                

SUSS-IR