Murphy USA (MUSA) 4 May 222022 Q1 Earnings call transcript

Good morning, my name is Audrey and I will be your conference operator today. At this time, I would like to welcome everyone to the Murphy USA First Quarter 2022 Earnings Conference Call. Today's conference is being recorded. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. you. Thank instructions] [Operator would Vice turn President I to conference Christian Pikul, of like now the to over And Investor Relations. ahead. go Please

open Hey, financial of Officer; Controller. forward-looking the Q&A opening Mindy call Officer; results during of Mindy and up overview Thanks Private we'll in After everyone. some the be Executive Vice statements me, some Q&A. then that this Andrew brief Good the Smith, XXXX. Chief in the us give West, Securities President will Audrey. keep Please considered Financial and some Clyde, defined Executive With portion are as will Andrew, the to Vice for Chief Reform and Litigation of comments made as call, and mind Donnie from President including comments Act today. us usual, thanks, joining morning, President and

of the cause or As be attained. such, will events no occur variety exist assurances these can projections differ. will that results to given factors that that be A actual may

any For factors, duty XX-K, SEC statements. please Forms latest USA other Murphy and or X-K, XX-Q, Murphy risk discussion update revise publicly USA takes filings. of to see no the further forward-looking recent

certain provide conform or measures GAAP. During we may Accepted Accounting today's call, also that not Generally do performance to Principles

in part over have schedules our to found press section of Investors as on earnings these call be to GAAP non-GAAP reconcile a measures which of We I'll Andrew. basis provided With turn the that, results with the our reported release, the website. can

we our board of our have earnings, lot of Murphy about importantly, one the general as potential achieving to proud welcome And the This performance, the hold of weeks we our our and in shareholders results to as quarter and results. but back And just in how busiest terms just of Thank be of have those everyone over excited report the about directors. future enduring you, we certainly annual last a growing of of we as joining share price terms and year, meeting of them. meet cost most is recent and home looking with at in Christian. year USA here today. in be Good the of customer our went the to morning, associates given field much model, loyal engagement advantage the staff incredible and our spirit base, store support office our low of and business us

commitments my shareholders more of As becoming this I that was on transportation reflecting stakeholders, our to struck our and fuel commitment provide year's to me month. weekend all week the to the from letter with relevant is to each convenience passing report, customers our it over annual more products and and affordable

the Murphy navigating And each month XXXX, analyzing continue about We lot their about our behavior are learning and more drive the a learn to needs. who customers since customers shopped we current how of have by around rewards XXX,XXX they and more environment. with us are

stable up prices is as frequency. $X increased consumption up by gallon, fewer a First, their with rising relatively significantly spend per us made but are remains fuel their are gallons trip as over trip

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significant we generating are to merchandise providing Second, particularly value tobacco the sales, the extra category, trip is the where competition. incremental relative in

or before for new goods, choice choosing make as our as switch are miles reinvest pump, we're of to they consumed our packaged Third, the the relatively with margin gaining lower also products value fewer we seeking promotions less sell. we into and who brands at the customers prices greater to tailored drive consumer

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challenges with we than to the turnover steps taking pool, inherent we're managing through marketing. retain the great up continue special planograms while a keep stocked. shelves ours, like a recruiting in While new vacancies job to staff a applicant fill and substitutes see resetting and team merchandise to to by doing is business introducing incentives keeping additional The historical products smaller store and

supply during stocked, successfully navigating Cormark for impactful well executed a quarter. addition, our around the In challenges did products keep especially great and chain stores to featured we promotions job helping

advantage, the resolution more ways and one contribution Necessity to existing improving serve only the both get of think food to plants. intact remain labor implementation point, but supply And products. I before weight the addition, not streamlining mother we out stores our additional our generate goes more are torn or of in teams cost they we competitive Murphy, finding down by you strategy to guidance and year of it. keeping navigate $X the from from as over intent list rebuild of track more reverse faster where is and issues. growing are our and a our synergy stock asset of beverage invention. has the while identification preserving CDX acceleration is Early mispriced this wins ways The contribution is capability But chain million at sales In components on. and equipment repurpose on a in by development advanced QuickChek and and

the the leadership we top the of fields in back of that retail initiatives. our some next wave breakeven we early are initiative, critical transformed business like growth model, employee our senior excellence our As zero launched campaigns in bottom proposition outlining enhance similar foundation value of the the stages like line and capabilities, pricing team, the initiatives, to XXXX, of and

have opportunity to to momentum. at great build will like we we and our current never on USA, say Murphy As we be complacent, a

also with As offers to winning our business engaged this cycle advantage recently of our Girls impact customer partners the We of year a America, EDLP model business continues by customers our virtuous stakeholders. campaign other with serve. kicked off in in thanks continues. communities our positive third We're Club the to delivered and engaged invest able our to employees the Boys the of roundup which and benefiting make we through

all returns. when really the has work end a by not repurchased new track our to we ESG quarter our focus also your industry win our like the than But grow placed customers, notion shares, that dividend. is total we on and as even of have what to in During more affordable past being the leading sustainable our to greater matters while customers. shareholder of The over our $XXX any record ongoing an years more two relevant three of means. the reporting to business part our continuing with Continuing win stakeholders million

Taken teams results together, the hard quarter USA. and generated efforts strong work first for Murphy

strength our earning fuel industry peers a customers retailers continue, means is element pressures uncertain discount is offset generating key face high margins. increasingly remains future we place for a through In our amongst breakeven able extend customers. environment, increasing. higher underpinning and risk and being structural more industry requirements were an as greater smaller loyalty sensitive our to fuel namely and this attracting volatility that price partially Importantly, fuel This price in existing to cost the

store of that marketplace is from the more subject future, concerned geopolitical to further grow sustaining value future element to macro taking subject not XXXX but be it macro value know in share our recovery volumes but risk Despite All setting. more a only contributions are is this resonate gallon period that all increasing shift One artificial to the evident with are higher. another As and proposition were face. is volumes will of to temporal in and fragile inflationary supply first yet prices fuel to outside environment added emerging only into that strong results for product proof our plus more continue profitably risks, We us of we as and the XXXX, our from different same customers will these ability the than recovery remains we remains April rims the to share, commodity quarter, regardless natural our seeking we to advantage our advantage in higher the further taking result, growth about we our which performance, pressure. in coupled new our the and total and that $XX.X movement per particular quarter exposed to recessionary as and gallon the and margins. year-over-year not with and COVID providing demand per delivered fluctuations, macro demand fuel pressures

past, results our we volatility, up average ball PS&W skewed during plus of As also the expect that that will move environment $X.XX said directional to and with margins prices periods to prices. consistent the during we to price results the and quarter. price noted PS&W Thus, a QX over move saw $X.XX repeatedly in and over be end $X.XX time. We've consistently our extreme are

of I price. impact we about RIN uncontrollable fell $X.XX per to embedded context business below by net XXXX that of our partially in bond these Absent price part $X.XX, internal further stable and offset would another gallon, delivered stated the as total over PS&W Provide $X.XX prices our were contribution This if resulting contribution [indiscernible] little a movements, transfer per we out sales we've to we for per inventory fact, serve should $X.X in yet or the that told quarters results, price little supply change, the product you from back underlying $X.X RINs reminder negative each per all In a relatively results our expect. the loss QX as gallon $X adjustments, long-term of and timing $X.XX about and see this example, these a investors to incur volatile the over gallon, resulted direct is time. average. gallon of remains for of

moment unknown where in retail off see the fall question suppose and going to and up significant to a typically see achieve Mindy and now is I'm the then the big outside will review commodity we growth. we at briefly the typically hand if the when Now financial prices, not we our results Q&A. open call call gallon margins to greatest over to wrap and

morning paid good compared in which on XXXX. and of versus liabilities obligations gallon or first prices at $XX.X approximately quarter debt on a of gasoline Andrew, as in rate ago XXXX the of everyone. $X.XX earnings for Revenue remainder amortization first quarter in $XX in expense. of were EBITDA income period. you, XXXX. annum year to previous the the representing as the loan, Adjusted than and effective Net tax a versus XX%. And first XXXX first operating quarter captured for versus taxes, long-term balance the the million was the was $X.X billion also interest, X% retail sheet XX, higher amortization Thank million in $X.X per XXXX. reduction depreciation, billion $XXX.X through $X.XX quarter was current the $X.X $XXX March was the gallon million million lease per for the quarter before the million Total are and the in billion, Average is year was they approximately term $XXX.X of

cash lenders $XXX These $XXX leverage we since end. Our million totaled the of quarter turn XX, in figures as call equivalents, with our approximately a about over And report X.Xx. had March undrawn. will and back adjusted of In million revolving $XXX.X end, is to cash result at and of million that, that currently zero outstanding balance ratio credit facility year to Andrew. I

future many results embedded in the factors I as are believe increasing quarter's in near unlikely Thanks, increased that the Mindy. in face our structural to retailers highlight in challenges. are Great. advantages sector model of the dissipate smaller the this

thus positions we growing mindset factors, our these better While certainly customer immune of us are scale, not improvement continuous business advantage. our we some positioning and these mitigate to relative to pressures, model, believe cost

may As in in continuing the with in the win best-in-class any a confident and total I that up returns highly delivering questions. can for in this to environment environment we result, we operator, shareholder ability and open remain And our compete future. face lines

Instructions] you. first our question from [Operator Stephens. is Ben Bienvenu I'm Thank open. Ben, your sorry, take We'll with line

No yourself muted. John Royall at may have we'll response, next You move JPMorgan. to

Hey, good for question. me? Thanks you taking morning, Can guys. my hear

Yes.

inflationary so Great, pressures. wanted just ask to on

OpEx in of the think quarter full-year my came low guidance at for surprise upside range I Your station in end of at which is the thinking. somewhat an least the

cost think I you you I of relatively think are relative that strip fees, are do impact what understood, now credit after So seeing out side? the to guess in which the right what XQ? you well card the

changes making we having started make we labor in that we ourselves continues be got everyone's a pressures step we're of spot some lot some changes. year, believe last last some price area increases mean, digested good years, positioned, an to we I this additional we're have in supplies and year, I there's the the a immune those relatively pretty but in changes not facing, of to did well where

providers example, for for that of things so are there's and surcharges Some of diesel and maintenance set just others an are facing. our we asking like many ongoing that,

not it, a think but proposition as I stability we're to employee made scale, the said, some changes, with well. immune value of our So creates having compelling having as I

that past, I And share market know as public the happen, been you to history prices guys periods company. goes down? been during came impacts that the if gained has period, you you price in trade know, but some this, on you it, I'm really back it, on then I there? thanks. COVID don't people the the of trade held that were has -- of able we even the we've able company, when Okay, similar do up share, with retailers, past, That's your in public this of the price sort tobacco of share have you a on it hold to seen to sure the have like caused had tenure helpful. when in where with price to of your have when kind lower you to picked In out

the period the crude before back that to significantly. look, get reality as and but sensitive. XXXX that's very And prices for best was to USA, where I price as significantly in example time, up deeply off were you $XXX. is company if $X, so XXXX, going aren't share it go XXXX, study fell probably period was look, Yes, the then you you customers had when And my the prices gaining did below Murphy

gains there's period to did, see So XXXX. that portion had you of on softer as some don't recessionary we we outsize that probably hold of demand a where July in up XX volume you until then,

have recessionary away definitely broader give of periods. And when you that you so some

that the breakeven we is it I today step then away. level or industry place for versus seen we've higher structural three labor think then, or pressures, requirement in than see the going is is big was two don't the a those the and difference

regulations looming, Additional cetera. et

offs Some market has tobacco spin also, share think example gone we the other for some away, of had the well. structure industry as has around I

benefit other to there's off us, be about, fall to But about don't there's I aren't up. is the know in side than on big was going $X than better that's for run it people So, But something sets XXXX-XXXX structurally much a of example, gallon a us period price world place environment helpful. I I higher are think up that the the I sensitive. think something XXXX. for a our this going prices think if different think a where I

Thanks Yes, pretty very much. helpful.

Sachs. We'll next at go Goldman to Bonnie Herzog

All right, thank you. Andrew. Hi,

Good morning.

like seeing, to your your But on well then margins you question levels sort this thinking of $X.XX context Good this you ask sustainable fuel historical just in terms which you is that what bit terms modeling help. touched how just the And of margins? morning, back call of clearly think I everyone's the on and these when gallon, agree for certainly to mentioned a above key do about, guidance, we're revert you've some on I'd of making, you towards in only. that. change about I you when QX of incredibly these little more just a remarks elevated the should in was minds comments because that, down structural are bit called this out were expect per But purposes prepared little

ranges year the saw QX. the how in comfortable strength the are you with you laid for you So, out given

just comment So well your be as to would guidance on helpful.

if in in to more Look, similar residual would margin to manner. had said it it guidance buy for not very other I clear made And that and capital for analysts, was of thing achieve purposes, share we more seen modeling we minimum Sure, the not was And years, which we line a if capital at we'd could our model just very, what there we and allocation would shares, was quarter, very guidance as couple that in $X.XX objectives growth that clear number, that back simply is the the allocate delivered, that, right, purposes. we you And to said, with for a we that would think modeling meet was expectations around do and right. is, of of sight last did continue for repurchases. we investors we

do would in that's, $X.XX we've clear what a comfortable in very $X.XX got and environment, of think a I we environment. So, sight, living line we're

fact about, would in well, the app again there's earned the If and increase, we've a yourself, what gallon, that residual the you that in we QX record this it future, you think earning have and I to opposite you it the things equal earned an there. price effect a book the you saw that in $X.XX of quarter, past, we we at $X, absolute few a that about saw the to I believe in margin XXXX continue and think think think quarter this in

was price say the margin retail for And was rising you would so, in arguably, a us quarter understated it environment. the because probably

again, how in the I would teens, up so. would residual make movements, you is, going just of two within then issues, they are I think up, would or premium almost of geopolitical and volatility volatility lot then could sort the $X.XX, sharply, of and I proposed fall, up the to penny was there or we're prices they describe, has prices and especially seeing. I to there's ban, various much And that league? fall in $X.XX the run within risk point actually $X.XX, last down smaller three a the think imagine rise and keep, month had, be trying we've again, whereby to that's of And second when a about, kind what if worth with they quarter, well, we run current Okay, the of sharply a or the or the thinking bans or range. call and that's fall or a a retailer the that,

cost shoes What on us, we can in than if of that you that environment? would think is a by weaker perhaps yourself putting gain in a I ask though, themselves, So past means okay, for the margins what the do volume lower of in they at street. that I that some do put retailer, the

offer. everyday affordable, to with to we're continue price stay going our So low relevant

got there. the you've think structural volatility, this maybe now, And a different change, behavior risk of you've sort have or premium, the so I got you you've both got greater

type volatile fall, might clear high going to we the in prices I know change. be high environment not environment price, think be commodity we're long that as me a of where to environment. environment, as happens would what When that what it's in cost changes, that prices, and

to side least is a persist. And at the I are on other a that's out big that seeing consumer standpoint, likely think that, to non-discretionary structural so suggested environment we're of And challenges this as From the the coming difference. the I John, purchase. in

growth, is them, think view vehicles as cetera. inflation the For is our I you've new and had $X more $X, et are wage efficient,

demand in so certainly a $X seen we And our that at haven't XXXX. gallon we kind that markets, saw destruction in back of

this model and the business think proposition. and I for customer So business is setup value perfect our

it's you little on question to and going That's as exactly of stay very your the helpful, on XXXX to reported understand as can follow-up basis, a seemed a at because reported basis. seems you relates to levels difficult and looking elevated, what's things be so to maybe quarter. appreciate, below have gallons then just It volume, what it a as fuel in you on net SSS bit

pre-COVID hear and just gallons to asking what maybe to new in about, of fact, that just in in and then customers? So just you're share about translating you're how that, context and talking based terms bringing ever curious if will if thinking levels, of you on in the gallons, think the then return is I'm fuel gains that's

absolutely you're for of the quarter, XXXX so was performed full good we we the above a XXXX and first XXXX QX below performed have where is levels. month quarter, April Right, XXXX right,

at peers, reach and doing their et a, the cetera, that still same and I And a the proxy taking good profitably. the that share it's we other you represents can conclusion so under get demand look can from public are you I survey, public Opus but believe data, you think which

members and gaining in Murphy how I we're Drive we new see We the data Rewards when and So, participants from to a current feel is navigating XXX,XXX you back, consumer you've this the environment. behaviors know merchandise customers, they're you just panel that your also is and purchases Rewards and sample, us that can Program. see where tobacco, Drive every their across month fuel, XXX,XXX single and I new with continuing and data member when our look in we're own Murphy confident helpful mean, -- that you they've got see that. so made have can think around

'XX, price see is in higher or no as the the our of in different sectors saw another low than from everyday this so environment rising price different XXXX not company or goods what what common retailers other well. it's And sector,

maybe Okay, final I on you because question about me, touched April. one something may, from if just

better gallons like sounds back it April were than So in are 'XX. April in of they

So they're accelerating.

seeing of us share color So the so some month-to-month QX, maybe what what of so little with everything, are in April, especially, during could of bit If as you trends does fuel up, fuel to you Thanks relates you're frankly, picking quite light that's mean on it interesting, that for that then saw margins. in gallons more month margins and during April? the much.

things pressures volume acceleration is prior-years, got the from Yes, the seeing and and the kind and a if an of not April, grow we and the that, seeing quarter et the volatility, because of we're the some efficiently will, generally the cetera. especially kind month because winter over and acceleration. mark, you requirement margin, that's especially structural the trend you've remain, the we quarter, throughout in was various you will, every we're in quarters of where able to comping than you're if when ongoing business, look similar the pretty But storms, and the get mile and minute first that crossed the market And gains quarter, the four impact of the share degradation XXXX about drive process. margin, in got of some breakeven

right. All

on general? year, seeing accelerating this far what month-to-month kind a so in of basis you're are trends So

this So correct. year, far

much. so thanks Perfect,

Griffin Raymond Bobby James. comes Our from of next question

Good on morning, Bobby. taking Bobby. other questions. Thanks, congrats great quarter. Thanks for the And

how good over on crossed question mark want More first want some since are that Andrew, from talk of I level you then on work year big maybe of the the integration two? just the in kind the maybe initiatives to your to one-year of the QuickChek. on, first areas you acquisition, high switch integration in areas guys curious to years, some are what you view the like that mean, went and

the new people that been QuickChek we up the about were look, and thought excited that one on Sure, of embraced about on think case, especially we spend the so the only a the that. and the loved challenges our but has there I've change. everything Blake culture Segal, with, time I and been things how were of been It leadership without we questions we and they've there team not joining ground lot leader, the and hasn't

being have motivation have I an company realize well. of One equity certain you people all bigger think And at program that, a beauties of levels. company, that and it you a and the when and you're business, excitement as of a around sudden part public there's performs,

a the where the up some in really knew quick all breakfast of some changes can we're So, engagement. I strategy, is The their and appreciate low some fruit, identified strong beverage done we're food and had pick the sandwich from paths taken proud thank food team surprisingly, and and really of have a a we very is, hanging given the and going also, standpoint. history value a Frankly, lot medium-term beverage that our same up both pretty consumer business, that some place, more and picking had parts understand and to the we what success. brand a nicely, not seeing morning to depth really some amplify there. We've are in initiatives of work at time where create wins, strength pillars but day

leadership opportunity And good a team we have to opportunity a as do that. we a thing think is think the make relies be strong And better. that set, to on an we team to So, again, do like business that. able I we can where the

in brand great the So market there.

excited the So integration. I'll things stop there. But we're I about most think two those with the of are

different the guess working clearly mean, is bit Tommy that are And I perform you are kind a there with How two was so you between data the than parts of on details a of year extremely well. of some second Any of and are discretionary two? I difference and big, think, more two have you one could businesses, say you higher blocks question. are great second what customer maybe this mix. any the responded this a of you know, of than, the products And some I inflation, to defensive what their year kind I Yes. music Murphy's bit -- little quick there it's the mix has what customer, moving some that prices? two? part appreciated? of take gave guess, know, of Murphy's a mean, be very kind on or little a business would

a tech Italian the for the don't to discretionary. of from best quick is The know, know, for New good for, standpoint. look, in sub not And me know of in Yes, value a our customers. go morning But Jersey I I about the you that. all cup rated same coffee we're

So business of got at the and the not, beverages really happen the than they one to know food I think customer our more customer buy is as just is more we like their to things stores.

like too, say, as we just don't from buy it Our eat as much they us. of to customers

there's loyalty COVID, delivery. around always there's before optimization, right, there's food got think into right only and I and launch they opportunities So their price beverage optimization, many program, rationalization,

team Murphy drive kind, our here price low everyday built, So, its loyalty awards. of the first with program

management, we was opportunity. digital creates towards a efforts There's and loyalty talent wasn't the our a opportunities insights consumer optimize, that cost spent a lot cost it turning around check of around to So big optimizing. quick opportunity, cutting, around it

of to chain, to laid you be pricing a about like promotion. top so think QSR, business, on labor opportunities and labor, there if optimize And supply going

make grow set to new well business as So stores continue take great that opportunity those the into we as to opportunity advantages continue stronger, to as we that brand. think there's a to

quarter me. months the in for had thank acquisition first three Great, there. lacking This you. the all It's we of was

was the expectations little a step standpoint? of the merchandise in you mind you year. in bit line? in guys seasonality right come anything just kind to left there year did of moving unchanged. implies seasonality Because the modeling quarter Was you? any off there then, parts guess, I GDP, when the have up. us model that's, for getting look last at on And in So internal But keep kind How versus surprised a the the

closed on January numbers have the Yes, XX. January of last so We all, not we first in year. did

two So is this months.

kind things, more really unit I kind of So one improved. beverage, that. to we're that. sales of sales a of also higher of there's those on of lower look then of yes, especially mix, We well. jackpots. of frankly, being the comes just we stimulus grew gallons, could think the as advantage beverage. as side lot And and of big and as we of attached things we'd part lottery, margin around this innovation But fuel look had goes to quality More higher like taking is to a the the towards at package in beverage packaged we the at And full we saw, And with sales, mix the lot that have so other due quarter ongoing lottery you a package as got attached the went money two

last So year. as this that a And gets there. bit difference little than of we you merchandise, less year see cut had general PPP off,

unit margin like thank the a was some part big to continues. of that trends saw, mix and So of I'd

We grew also unit March. promotion the exceptional had an margin, that in

way. from I that both exactly the And so, COVID But favorable continue in trends continue same and become environment. recover say the current some to the to be would and businesses not for as more relevant the may of strong brands repeat

details. I luck Andrew. appreciate Thanks, XQ. of in all the here Best

Great, thank you.

with next Ben Stevens. Bienvenu Again, to we'll move

about look think Hey, that I dynamics suppressed I the Apologies breakeven earlier. Rin and missing about as think we cue to retail know margins ask of And if quarters, our I quarter. And you of started. thanks. in changing COVID. us that think observation, around I can But there imply the is the Volume there's PS&W the first of hear up. for underlying this one that's the on up it's this dynamics kind you the conferences. the quarter. structurally nine is in gone think, with each that COVID, beaten well. the today, costs and business as of of when breakeven passing in guidance we obviously, go business you're a earnings idea the the business the at pre the margin, fuel power record was recognition mean, positioning periodic on volatility materially artificially today, which would want this, think last giving the of strongest Investor quarter interesting in change. quarters I margins on have the I some last I morning. dynamics each other at see, are But resilience today, the from since you've of month Good since updates nine plus the And side, the

thinking the I be we is? you've now covered what much where one-time versus this. of how is you're is, the So seeing where equilibrium know, And should about how breakeven not?

So be I helpful, would just elaborating further think?

increase a, highest I end in first on R seen then well, And price Yes, a very And, margin, XXXX, fuel was strong there's spot regression we've ever the this opposite squared because shows the of that of margins, in almost your PS&W and think the are just high is XXXX. that bookending the the which especially that look, regression, and single on, timing largest of you're and quarter. the were that's adjustments uncontrollable observations on QX perfect effect. QX has retail anchoring other equal course,

right, retail get. of put you're all a the if still good understated. it's it we little But what a you So probably representation bit together, that margins,

an us. So low earnings what taker, for everyday as sets the We're price a power retailer. price but

customers. be and out responsibly going to the price our are have We opportunities to gain for to for there share, looking profitably that and do lowest

start the still COVID. did are of contribution. more it's industry. their that from merchandise food their for delivery of lost the going If update and categories. they about that every throughs they the other to fuel the and not I If recovered that the business. got drive dynamics relevant et down, you've we And big drivers, gains and losses don't they sort third breakeven so quarter, of with the mean, if you every And But quartile tobacco recover month, think for their certainly say retailer, services, offer down gallons or all part as maybe cetera, attached haven't and and isn't beverage

that with get little So -- raise of having the which and work little I of a on to of cycle, as and to owner a And costs I profit little penny impacted a I'm very take get providers, able operator. merchandising, same I and some the this volume, to cost some costs for our to Cormark, through transport had our more for pass equation. a these still I'll the in same having not to to there, you go lose top-line Then vicious harder pay maintenance right, maintain prices got imagine cycle a share, an vicious to players higher. prices. labor, creates able can great whether higher and fuel side a margin to whether can they partners number third-party is and lose I the but thing, while. the my it's it right, We've And scale. we're structure they're lack the I'm the business, manage it's it's probably bit the bit their our partners, bit are because got cost they've

pressures quarter and were this fees, credit just to And continue gallons, the imagine of companies. a power credit our before significant they're gallon, fees it to credit requirements. years, you continue by increases of a Visa, kind is lower see card they up and That I breakeven increase. cost market the see versus going penny a prior and that's half a card I reflects And it I'd mean, to imagine card their MasterCard, so in that would divide

but not really than us. we're the more significantly so smaller that, it players immune impacts And to

just pressures I think continuing all to is So compound. these

of reinvest for virtuous cetera, and prepared as our And even profit lower demand, so cycle it remarks. prices cost the in relative a of the because and to us, drive our of described advantage, et able back our scale, just to part we're I across categories more creates

Yes, that sense. makes

performed a you has seen quarters that the point second quarter, fair My been the talk buy I'm is in to is breakeven the several is know interesting couple when Because to whether the stock and given stock in decide in stock would in share your where evolving. power like at finishing I relative healthy about been lower I some buying time, repurchase. below monitoring and of And quarters, how $XXX, the an is stock great. when any have the it and well. about of XX%, I price the intention where buyback or of a buyback of earnings of prices or thinking you've And it observation, it's looks you now. why, you it's where a each that you typically is when question price, did than desire, at Okay, about stock. But opportunities, this back have ago have. don't quarter. last stock. it's the think how terms moving target you curious, business might other the assume, And

this? you a So about it? program. think your do think of refreshed when about how kind thinking about to the help repurchase you think underwriting us about of business Can and How

year to about few last basis, three years. three since and one on the buyback, Sure, price, it have leadership there. multiple? for We the we be three industries. shareholder And two based to Well, bar think leads throw year, EBITDA? long-term years. about we year, on if back deck so, stock year, business, lay raise focused year do the chart we of of view our we our the every each the would board the share and shareholder, share side the then and to growth our every not really leads think What because us believe And in you amount outstanding? and return year, largest we in some chart our year five year believe conferences, right I business. hand simple tell what What a a it the show a the every a is team, right five our the our And movement investor you And view the of of total when one our to bought major year, that value. price. have we years all same on our this of And chart, be even two will people formula And go about we maintain annual you shares about and and talk about out compounded to a long-term have of the the parameters. to have shareholder the believe there's shareholders long-term just you industry what's do

for it's and today us see really years hard is higher sit not to and five significantly out than So look today. here it share That price. not is a

of And simple the see we earnings the formula If shares the deliver, major how you what's look outstanding? just to And the multiple market a use is going what's assigned? at just in much business to correction, multiples revert show will companies. so that the are shares at be our some going lower that time, you're to cheaper environment. Well, across going all see at up it being

share. rises our and we price a able within with geopolitical advantage below of the And Our falls, prices outbreak back those risk, to take XX opportunities. We're $XXX right. saw the last days of

about can about the So talk view retailer, our be us with through long-term business, about being fact get aligned affordability, we I sustainable. talk of And investors, the share that longer-term much we The way low think then then it that with a starts our a talk those of with staff. are business. responsible make sustainability the the buybacks. engagement things we cost that We we

the and five organic this us. time, the of a and period when we amount be balance growth our to a think little of the And again, deliver those is is is value share wanted we is of there bit that And And always worth out there's to of do in or more, balanced see our But business and so of this But years when lower into I out, quarter. with endpoint. we and set try keep future. look that any clearly, ideally shareholders isn't more in to pipeline, way front we less we organic right, rolling see the year, it be growth. a years is one five function to year. that don't set primary out EBITDA where what we put before things than opportunity you going formula, And into things forward cause the price some us can't we message just the get would that that five to that mindset it growth maybe The organic do scenario a we this attend given back parameters. do over a giving

Okay, thanks Best very much. of luck.

Ben. Thanks

remarks. And this time. Q&A that Andrew the conference for concluding conclude our At any session. back I'll does to turn over

we Great. our future analyst the quarter, Well, today business. for but certainly the about excited questions just about investors Thank the very you we from shared potential thanks all and the in. as of I we're think remain the the excited listening in remarks, as much.

today's And Thank for conclude participation. your does you that conference.

disconnect. now may You