United Refining Company, together with its subsidiaries, operates as an integrated refiner and marketer of petroleum products primarily in western New York and northwestern Pennsylvania. It operates in two segments, Wholesale and Retail. The Wholesale segment is involved in the acquisition of crude oil; petroleum refining; supply of petroleum products to the retail segment; and marketing of petroleum products to wholesale and industrial customers. The Retail segment sells petroleum products under the Kwik Fill, Citgo, Country Fair, and Keystone brand names through a network of company-operated retail units; and convenience and grocery items through company-owned gasoline stations and conveni...
15 Bradley Street
Warren, PA 16365
Founded in 1902
United Refining Company Announces Earnings Results for the Year Ended August 31, 2015
Nov 23 15
United Refining Company announced earnings results for the year ended August 31, 2015. Net income for the fiscal year ended August 31, 2015 was $82.1 million. This is an increase of $11.0 million from net income of $71.1 million for the year ended August 31, 2014. EBITDA (LIFO) was $197.1 million for the fiscal year ended August 31, 2015, an increase of $22.5 million from $174.6 million from the fiscal year ended August 31, 2014. Adjusted EBITDA on a FIFO basis during fiscal years 2015 and 2014 was $93.6 million and $175.4 million, respectively. Net sales for the fiscal year ended August 31, 2015 were $2,716.7 million, a decrease of $722.5 million from $3,439.2 million for 2014. The decrease in Company sales was primarily attributed to a drop in NYMEX crude oil prices which averaged $101.05/bbl for fiscal 2014 versus $64.93/bbl for fiscal 2015. This 36% decrease per barrel was also reflected in a decrease in wholesale and retail selling prices. Operating income was $158,045,000 compared to $144,177,000 a year ago.
United Refining Company, United Refining Company of Pennsylvania, Kiantone Pipeline Corporation, United Refining Company of New York Inc., United Biofuels, Inc., Country Fair, Inc. and Kwik-Fill Corporation Enters into an Amended, Restated and Consolidated Revolving Credit, Term Loan and Security Agreement with PNC Bank
Oct 26 15
United Refining Company, United Refining Company of Pennsylvania, Kiantone Pipeline Corporation, United Refining Company of New York Inc., United Biofuels, Inc., Country Fair, Inc. and Kwik-Fill Corporation (Borrowers) entered into an Amended, Restated and Consolidated Revolving Credit, Term Loan and Security Agreement with a group of lenders led by PNC Bank, National Association, as Administrative Agent, and PNC Capital Markets LLC, as Sole Lead Arranger and Bookrunner, pursuant to which the Company: (i) increased its existing revolving credit facility from $175,000,000 to $225,000,000 (Revolving Credit Facility); (ii) entered into a term loan in the amount of $250,000,000 (Term Loan); (iii) amended certain representations, warranties, covenants and terms and conditions contained in the Credit Agreement, including the provision of additional collateral in the form of a first lien mortgage on the petroleum refining facility located in Warren, Pennsylvania and the Cobham Park tank farm; and (iv) included additional subsidiaries of the Company as borrowers under the Credit Agreement and re-characterized Kwik Fill Corporation as a borrower and not as a guarantor. Both the Revolving Credit Facility and Term Loan are secured primarily by certain cash accounts, accounts receivable, inventory, the Refinery and the capital stock of Kiantone; provided, that the Refinery and the Kiantone stock will be released as collateral as soon as the Term Loan is paid in full. The Company intends to use the proceeds from the Revolving Credit Facility for working capital needs and general corporate purposes and the proceeds from the Term Loan to finance its cash tender offer (Tender Offer) for any and all of its $237.25 million aggregate principal amount of outstanding 10.500% First Priority Senior Secured Notes due 2018. As amended, interest under the Revolving Credit Facility is calculated as follows: (a) for domestic rate borrowings, at (i) the greater of the Agent's prime rate, federal funds rate plus 0.5% or the daily LIBOR rate plus 1%, plus (ii) an applicable margin of 1.25% to 1.75%, and (b) for euro-rate borrowings, at the LIBOR rate plus an applicable margin of 2.25% to 2.75%. The applicable margin will vary depending on a formula calculating the Company's average unused availability under the facility. Until expiration on October 20, 2020, the Company may borrow on a borrowing base formula.