RECORD THIRD QUARTER PROFITS REPORTED BY HUNTWAY PARTNERS L.P.
VALENCIA, Calif., Oct. 29 /PRNewswire/ -- Improved operating margins and reduced costs resulting from successful debt restructuring have enabled Huntway Partners L.P. (NYSE: HWY) today to report record profits of $3,353,000 or $.25 per unit for the third quarter ended Sept. 30, 1993, vs. a loss of $6,028,000 or $.52 per unit a year ago. Huntway also announced third quarter revenues of $29,534,000, down from $31,368,000 for the quarter ended Sept. 30, 1992, due to shut-down of production at its Arizona-based Sunbelt Refinery in a cost-savings move. Refinery margins for the just-completed quarter improved to $6,698,000 or $4.30 per barrel vs. negative refinery margins in the third quarter of 1992 of $1,797,000 or $.78 per barrel. Huntway said the dramatic turnaround reflects reduced crude and production costs of $4.26 per barrel coupled with $.82 per barrel overall in improved product prices. Asphalt prices improved $2.93 per barrel over the comparable quarter last year due to market demand, especially for higher-valued polymer asphalt. Huntway President and Chief Executive Officer Juan Forster said, "Our record third quarter profits reflect several favorable factors including lower crude costs and improved pricing and volume at our California refineries. As a result of moth-balling the Arizona refinery, we've achieved a 35 percent reduction in labor and overhead costs. We also anticipate a profitable and record fourth quarter despite the continuing recession in California." In the third quarter, selling, general, and administrative costs declined 56 percent or $1,717,000 from the second quarter due to a reduction in professional fees associated with the restructuring. Meanwhile, interest expense fell 38 percent or $824,000 from a year ago as a result of the debt restructuring. Depreciation expense declined $429,000 principally due to the writedown of the Arizona refinery and other intangible costs at June 30, 1993. For the nine months ended Sept. 30, 1993, Huntway said its California refineries generated net earnings before interest and depreciation of $6,638,000; or nearly a five-fold improvement over 1992. However, it reported a loss for the period of $19,762,000 or $1.69 per unit on revenues of $80,741,000 vs. a loss of $10,908,000 or $.93 per unit for the first three quarters of 1992 on revenues of $77,741,000. Results so far in 1993 include non-recurring charges of $19,079,000 relating to the Arizona refinery (which ceased production in August) and $2,856,000 of professional fees and other expenses related to the debt restructuring completed in June. Huntway Partners L.P. owns and operates two refineries at Wilmington and Benicia, Calif., which primarily process California crude oils to produce liquid asphalt for use in road construction and repair, as well as smaller amounts of gas oil, naphtha, kerosene distillate, and bunker fuels. Its third refinery, at Coolidge, Ariz., which is temporarily shut down and being offered for sale, is configured to produce a similar product slate as well as jet fuel and diesel fuel. The company's preference units are traded on the New York Stock Exchange under the symbol HWY. HUNTWAY PARTNERS L.P. Selected Finance Data (In thousands, except per barrel and per unit data) For the three months For the nine months Ended Sept. 30, Ended Sept. 30, 1993 1992 1993 1992 Revenue $29,534 $31,368 $80,741 $77,741 Crude oil and processing 22,836 32,715 68,810 74,672 Selling and administration 1,347 1,430 6,339 4,290 Net Sunbelt closure provision --- --- 16,013 --- Interest expense 1,358 2,182 5,942 6,333 Depreciation and amortization 640 1,069 3,399 3,354 Net income (loss) $3,353 ($6,028) ($19,762) ($10,908) Net income (loss) per unit $.25 ($.52) ($1.69) ($.93) Equivalent units outstanding 13,359 11,673 11,673 11,673 Barrels sold 1,557 1,728 4,251 4,407 -0- 10/29/93 /CONTACT: Warren J. Nelson, executive VP and CFO, 805-253-1799; or Thomas E. Siebert, Siebert & Associates, 818-360-6408/ (HWY)
CO: Huntway Partners L.P. ST: California IN: OIL SU: ERN
MF-LS -- LA012 -- 8332 10/29/93 08:01 EDT