Printer Friendly

HOLLY CORPORATION REPORTS SECOND QUARTER RESULTS

 HOLLY CORPORATION REPORTS SECOND QUARTER RESULTS
 DALLAS, March 12 /PRNewswire/ -- Holly Corporation (AMEX: HOC),


today reported results for the company's second quarter and first six months ended Jan. 31, 1992.
 While conditions have improved substantially since the quarter's end, Holly experienced a record loss for the second quarter ended Jan. 31, 1992 of $9.5 million, compared to net income of $2.7 million for the second quarter of the prior year. For the six months ended Jan. 31, 1992, the loss was $9.1 million, compared to net income of $5.5 million for the same period of the prior year. Per share net loss for the second quarter of fiscal 1992 was $1.15, compared to net income of $.33 per share in the prior year. For the six months ended Jan. 31, 1992, net loss per share was $1.10, compared to net income of $.67 for the six months in the same period of the prior year.
 Since the end of the quarter ended Jan. 31, 1992, margins have improved and are currently beginning to approach the more favorable levels of prior years. With the company's expansion having been completed in December 1991, the company is experiencing record rates of production and sales of refined products and enhanced operating flexibility.
 Refining margins during the six months ended Jan. 31, 1992 were poor for the industry as a whole and, in contrast to prior years, particularly poor for refiners such as the company which are influenced by West Coast product price movements. In addition to generally poor market conditions, the company's margins were adversely affected by the delayed start-up of the expansion, resulting in additional losses associated with inventory build up in a declining market and substantial start-up costs.
 Net income in both the second quarter and six months ended Jan. 31, 1991, while not a loss, were also disappointing. They were negatively affected by lower product sales volumes, resulting from the planned shutdown at Navajo Refining Company's refinery in Artesia, N.M., in late October and in early November 1990, the increased costs resulting from the shutdown and increased oil and gas exploration expenses, including dry holes.
 Contributing to the adverse change in net income (loss) for the three and six months periods ended Jan. 31, 1992, as compared to the prior year's comparable period, was increased interest expense (net) of $1.6 million and $3.1 million, respectively, as a result of the private placement of $80 million of senior notes in June 1991 to repay the then outstanding bank debt and to cover the remaining costs of expansion of the company's New Mexico facilities. Additionally, contributing to the loss for the current fiscal year were the incurrence of substantial additional maintenance costs of $1.8 million and $4.1 million for the three months and six months ended Jan. 31, 1992, respectively, in starting the Lovington facility, increased depreciation, depletion and amortization attributable to the refinery expansion and an increase in general and administrative expense. The current year's second quarter included a charge of $.7 million related to a settlement of a lawsuit with the limited partner of Montana Refining Company, a limited partnership, and the prior year's second quarter included a gain from a settlement of a business interruption claim of $1.5 million resulting from a mechanical failure at the company's Artesia, N.M. refinery.
 The decrease in revenues in the three and six month periods ended Jan. 31, 1992, as compared to the corresponding periods of the prior year, is attributable to higher sales prices for refined products sold in the prior year, in large part due to sharp increases in crude oil costs resulting from the Middle East crisis. Increased sales volumes of refined products in the quarter and six months ended Jan. 31, 1992 of 28 percent and 19 percent, respectively, partially offset the decrease in price levels for the current fiscal year as compared to sales volumes for the prior year's periods, which had been reduced as a consequence of the refinery shutdown in October and November 1990.
 Holly Corporation, through its affiliates, Navajo Refining Company and Montana Refining Company, is engaged in the refining of petroleum products.
 HOLLY CORPORATION AND SUBSIDIARIES
 FINANCIAL SUMMARY
 Periods ended Three Months Six Months
 Jan. 31 1992 1991 1992 1991
 Total revs. $110,008,000 $123,431,000 $227,186,000 $260,701,000
 Net income
 (loss) $ (9,482,000) $ 2,696,000 $ (9,085,000)$ 5,527,000
 Number of com.
 shares outstng. 8,254,000 8,254,000 8,254,000 8,254,000
 Income (loss) per
 com. share $ (1.15) $ .33 $ (1.10)$ .67
 -0- 3/12/92
 /CONTACT: Henry A. Teichholz, vice president, treasurer and controller of Holly Corporation, 214-871-3555, or Lee Sneath of Dalton Sneath & Company, 214-233-8461, for Holly Corp./
 (HOC) CO: Holly Corporation ST: Texas IN: OIL SU: ERN


AH -- NY051 -- 7493 03/12/92 14:00 EST
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Mar 12, 1992
Words:822
Previous Article:NATIONAL CAR RENTAL AND EDS INTRODUCE THE 'HASSLE-FREE' PHONE
Next Article:BOEING COMPLETES PURCHASE OF GLASGOW AIR FORCE BASE
Topics:


Related Articles
HOLLY ANNOUNCES RESULTS
HOLLY CORPORATION ANNOUNCES FIRST QUARTER EARNINGS
HOLLY CORPORATION ANNOUNCES RESULTS
Holly Corporation Reports Earnings
Holly Corporation Reports Third Quarter Earnings
Holly Corporation Reports Fourth Quarter and Fiscal Year 1998 Earnings.
Holly Corporation Reports First Quarter of Fiscal Year 1999 Earnings.
Holly Corporation Reports Second Quarter of Fiscal 1999 Results.
Holly Corporation Reports Third Quarter of Fiscal 1999 Results.
Holly Corporation Reports Fourth Quarter of Fiscal 1999 Results.

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters