Murphy USA (MUSA) 3 May 232023 Q1 Earnings call transcript

Good morning, ladies and gentlemen. Welcome to the Murphy USA First Quarter 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode, and please be advised that this call is being recorded. After the speaker's prepared remarks, there will be a question-and-answer session. [Operator's Instructions]

time, of things Investor this Pikul, to at President Vice Relations. now I'll over turn Christian And Christian, please go ahead.

President call provide and we the of financial usual, Yes. Thank and then us and President Andrew Mindy as joining some Vice Officer; comments President overview Thanks everyone. Controller. Donnie Executive Smith, and Clyde, from West, are Chief Executive you, Bob. today. Good an opening With open morning, and Officer; to up the Chief Financial will for After Vice Andrew, Q&A. Mindy will results, me,

Please made Litigation as Securities keep portion, defined including in will mind this Q&A Private the Reform that some Act of the the statements in during of comments be XXXX. forward-looking considered call,

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

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

During also performance not do that accepted provide or to may generally today's measures conform accounting certain principles call, we GAAP.

provided schedules reported on of these our of GAAP non-GAAP to measures results be part release, with our the basis the as which press section Investors reconcile a earnings can have on We found website.

I will go Andrew. ahead over it and turn to

$X.XX in welcome reaffirm All-in joining high first potential today. margins that us our our structurally the see everyone to the results of Murphy extremely morning, line Thank gallon around XXXX, industry of the fuel value quarter the higher support view you, delivering well and margins. business. creation of performed and during Good results we per Christian. expectations future with USA in

along quarters, is raising of volumes. the an customer which, growth more driving recent margins strong in the higher builds inside continues line bottom to impactful and contribution rebuilds when new witnessed store. year-over-year merchandise increasing traffic to performance, Robust number coupled with into from with even translate the are positive As higher

$X.X we share With new cash to aligned level ongoing decade in drive with set sustainable XXXX. investments share stores This flow earlier believe a growth and for the are free to announce new earnings generation authorization repurchase investor over up year once the billion repurchase is next capabilities, will continue we expectations to of excited new the future and and again returns. commitment bar and of this shareholder consistent when we raised through we and

market notable which about the perhaps was generated first when such the commodity Russia-Ukraine prior conflict price we volatility, compared year as element results, strong And lack the environment period erupted. the thinking in of the most first quarter to

$X.XX about retail to As the PS&W a for throughout residing added $X.XX coupled at $X.XX and tighter margins margins business, the to $X.XX a were range. range fuel XXXX. with $X.XX per ranging suggested to the of When gallon generally nearly nearly gallon $X.XX per fuel of our gallon which relatively quarter, in high-end result, all-in quarterly stable full-year were results, mostly from per per gallon

strong patterns fundamentals historically shoulder seasonal such margins where during quarter and to considered should Investors demand what norm. see the be encouraged are is lower a

In typically on fact, were impactful full-year several results years financial materially QX going not back performance. ago,

net we income in delivered second first year, highest the history. quarter This and company EBITDA

EBITDA. generated XX% to about only alone of year where year, full QX results Second last XXXX

drive up store share. volumes price with customers, helping month X.X% strategy to per to low average as take we continue everyday continues Our resonate

loyal service from our value but suggesting the continue have in may sticky initially to offer. in lower attractive due come a despite and us customers behavior street to environment high we prices, see shoppers traffic to convenience, robust prices Importantly, in-store seeking become who have fuel lower the price

basis, current only we year gallons gains, base. same-store X.X% retaining market quarterly but continuing two-year prior the that build stack for are to X.X% not upon a With increasing and share on

Our attract where contribution share and same-store dollars led and margins for were respectively, is sales grow growth and to but X.X% important store, fuel not is performance impactful non-tobacco up only customers strong and merchandise X% the categories. ability by in X%, to also X.X% in translating

performance higher powerful especially lapping coupled network XXXX every was effective the and with sales very are calendar, strong a of quarter promotional manufacturer-driven even promotion and featured per despite growth X.X%, active in respectively, passing X.X% and an In-store through in particular. increases. which category a from growth store and more margin given Murphy comps impactful sales When some and with impressive tobacco unit almost price were in they highly

even aggregated performing. well of the actually the business understate customers results strength is how our However, these and

center seeing are performance, sales delivering stores beverage growing promotional near and and strong benefiting XX% rebuild packaged focus of growth, margin roughly energy drinks. categories, and store store like and on We from new and resets categories raise

and a geography set different offer. On to challenges the performance facing is its but unique of also QuickChek expanded side, strong,

Mobility X.X%, affected gallons impacting the trends areas APSM basis, an and on are by traffic, X.X% fuel were contribution has country, up merch commuter down and as recovered QuickChek which were not respectively. the the sales other fast lower in geographies both of as and X.X% margin business. and merch Fuel

nicotine We the category. see continue to pressure on

March begun to initiatives, second the improvement in results better have However, quarter. in shore to we efforts sequential to expect performance place have and the help in particularly see category in and from see smokeless incrementally those up put

to were innovation Foods, also increases and product modestly than up create took first more faced from price mid-single-digit store margin headwinds in in price but volume measured as early in the price costs resulted Center at QuickChek, continue categories quarter. offset growth commodity QSR Prepared rising increases price points, and and but grocery we peer broader separation And sales and versus sales we contribution.

compromise margins X.X% the not the position down value results. food are and at we year-over-year, beverage in of market Although will short-term expense our

years, past lagged new establishing intentionally our ultimately the low increases have customers. price current by with our two with over We price about broader position customers and QSR XX%

more because it making and stepping retail the we up looking accept pricing. retailers with in back holistically higher we are at compete, seeing which are they landscape volume fact, willing to In losses

to Given this value stepped-up platform, promotional communicating well we advertising, enhanced improvements centered customers and our improve core QuickChek dynamic, along building sales from with around to and food loyalty activity are brand through the gain awareness offer. prepared positioned

targeted coupled expect business In short, medium and there in the has for measured impacting expect to the beverage done and increases the quarter. short-term, in value X% We which another of where food up we the maintain to we costs the believe our value round moderate. with an significant quarter relative the and were that The improvement an less OpEx first proposition, team be price X% the side long-term. category, near-term see performance. store to the is was QuickChek than job also up QX on created excellent in over cost When

performance Given generate, free for business the and flow the resulting continue of financial we invest to strong cash the we the long-term.

new dedicated business, and includes to raising our both the growing and stores foremost, rebuilds. First is which capital

were per little last are month. key delivering higher strong returns than over XX% build of in current metrics. included the month XX the averaged per a network XXXX about stores classes averages stores the from which first New the average quarter, to about XXX,XXX gallons ‘XX, store in the outperforming XXX,XXX Murphy environment gallons In four and network

XX% non-tobacco higher stores sales driven sales. merchandise same by X% generated these Further, higher

future success challenged current of to returns we including deliver in strong QuickChek to on given raise While XX in the new with XX stores stores locations store store environment, six allow repeatability new stores more the new and when we the USA openings estate are are remain formats, XXXX, our conditions and track both inventory in for new rebuilds, business the Murphy along XX in and our in QuickChek future. ultimately our the brands, to real deliver per investing pipeline, preparing XX new year of than growing

widen price we In virtuous our future investing of of competitive the versus higher industry, addition are investor a acquisition, March, in in rest in in referenced cash the a to opportunity will low is customer our enhanced and unit growing result the to extend position cycle to which performance, moat the market. in flows growth, presentation capabilities

on sequentially opinion. case the ratable new of repurchase compelling coupled more share impactful more improvement the store Considering long-term business, impact a potentially even initiatives the business our in and with of becomes the for larger authorization high-return growth, performance

Importantly, and, is not an investors. repurchase an share or for our

based driving QX our are repurchase the While expectations we can upon decisions returns long-term the investments the our where and in are value incremental ongoing slate from results future. even better business for strong, deliver of initiatives,

to to million authorization. excited we're prior new through XXXX, reasons, these a under $X.X the $XXX upon completion billion $X billion of the up commencing announce remaining For authorization

Q&A. we and call the financial will I'll the open the up call up to Mindy then wrap over now results, to to briefly hand review and

year for per line share morning, quarter EBITDA the XXXX. Good $XXX.X for million first $X.XX billion, the was versus $X.X Andrew. Net first XXXX. Thanks, in everyone. of the ago period. million the or Revenue quarter was quarter versus $XXX $X.XX or per share income of was the in in $XXX Adjusted $XXX.X XXXX million first quarter million in with

versus gallon per quarter are liabilities, reduction long-term at the of term loan period. were they obligations in balance the on Total X% expense. our the Average operating amortization prices as retail sheet debt end current the $X.XX through and $X.XX representing was per in is the captured per a gallon of in paid annum ago year the remainder lease

had facility a X that is balance of end adjusted currently in these ratio to our at leverage credit revolving and X.Xx. lenders gross figures outstanding million $XXX undrawn. report result together Our quarter And approximately we

about growth was since capital year-end, majority totaled $XXX of other up net the Cash to investments. stores cash new allocated million equivalents as and million $XX of XX. which and $XX and spend, March That's it's million of of

will I over turn And to with back that, it Andrew.

Thanks, Mindy.

saw first about with performance, half the and some running are we Q&A, are on the pleased the continues second month. critical food including beverage volumes sequential to sequentially trough improvement year the down categories, in pre-COVID line prior I in want early comment We points that strengthened broadly April saw preliminary to Before to momentum I'm X% which in a March, April do we and patterns. for up say then of open contribution. seasonal levels from April in below and in quarter

$X.XX per half average to double-digit close month, about in the center $X.XX $X.XX with Retail in month and trending gallon margins for continuing in to store last to deliver per beverage gallon remained strengthened performance and margin. translates $X.XX packaged to the categories the above This sales gallon per the weeks. and last retail-only few only the March saw of first we margins over quarter. in strong growth key the also

capabilities, new measured comps coupled margin turning and year-on-year are we Prepared the positive Foods during both the and from see the aforementioned improvements investments see with to price in half. near-term in quarter increases long-term in and benefits performance. in enterprise-wide we some When Additionally, targeted expect second laying for groundwork the merchandise

were areas remain specifically of under OpEx Certain maintenance pressure, contract the categories renewals. in

is more X% inflation about wage prior the years, up first muted growth than However, quarter. exhibiting in

While total for per X.X% X% store cost were store up year-over-year. OpEx

of In across nature time volatility, first the single neither closing, elements days define and about I the And virtuous factors. win to we say will we are the certainly out. the quarter as environment into we importantly, business. persistent XXX this or our momentum this that the is over to year said, the at excited quarter plays term. ever that note year cycle uniquely given of the reinforces how balance are USA inflationary where positioned of the the price would summer, that of other Murphy underpin in month industry, key a the head the the That long

questions. open for lines we that, With operator, the can up

first Bonadio Anthony Certainly. question Clyde. this Thank morning Fargo. Mr. take at from [Operator's our Instructions] you, Wells I'll

hey good nice Congrats on the guys. morning, Yes, quarter.

move So dig clearly QX would inflation which industry year. more I'm realize be can year this price the dynamic of margins a share has year on think It Wage different and in yet here, bit me through Plus QX to provided looks you just versus continued breakeven to favorable margin, were volumes are little around. retail more that fuel flat QX I higher margins. year-over-year. flattish, suggests that in the triangulate although oversimplifying as for us that? of should like well, I to and all but takes last help continues just a puts argue last than

unlike environment, that big we a about the of last have talked anything this There's The by difference your were I level that's it moves seen and year And the we're And saw that movement of price, between moving impacts of to a advantaged. year, year think is Is frankly, up in price last going the this the volatility. influence couple ability Sure. decades. size people versus much? environment certainly price falling how right? upward where of We've an before.

environment with that so And where created certainty. prices quickly up more an greater moved

the but to really to said the level due between volume And in both on margins. standpoint, range the a up that of both and serve we historical of so a from We QX but we upper on earned patterns, maintain a was advantage floor kind that our kind the biggest on on outsized difference were fuel the we set and certainly what $X.XX highlighted way down. our of saw range end the way volatility we able we of to annual separation based guidance

I a So hope provides that color on that. little

to would I other The Anthony. that. add thing.

an would argue can talked because favorable it environment pricing results we did first-quarter weekend, the really towards think happen before. price not year increases, last are as lots retail impressive of have we've for I I on as because which which necessarily that was the about side also

if at very the those So, they weekend the January of half had end jumps magnitude. the had of of high look week. XX first-quarter you weekend, price the three particularly higher or impacted, at of of $X.XX was price jumps wholesale

said rising allowed saw would the next preemptive dramatically. restore with we some as price high you, market both the us year moves volatility of in that increase advance and competitors which in in because taking Andrew the the was then price to had on last resulted I so but decline in margin, February, we agree an unseasonable March, Now volume to price, ground gain

So. I which occurred are a the change matching to and that the margin. last structural would year's ability retail-only for industry's quarter is business and of strength testament all despite challenges to the margin the has to really argue the the capture also

the part takes really but Got around different of new to and maybe Can weaker high then. a and consumer this helpful. just, of idea And a it really P&L being know the thrown does defensive the I positioning by about a conversation, at talk backdrop? a investors. your it, like that's increasingly on level recession isn't seem you puts is

value that anything but help or value consumer seen you, And lower is that frame might tricky any certainly then overall tailwind us retail, player's for being historically spend retailer. a having you've obviously, for maybe, suggest quantify for

that? So, just anything through to think help all us

know say, curves yield how at it to doesn't recession. look the declining the customer look pay, at two through GDP, month. our look of periods comes would their take-home they when average far them Yes, they inverted I or you at It gets

have as in with in I statement that's just was, in conclusion and and been pretty industry I and when other all customer do aggregate a we think the demographics was what across that I is do and recessions of one customer the retail the binary. our CEOs everything country we talk had we challenges like our make think we we they're about recession segments and with typical suppliers a feels our recession. a

someone And day. that to seeing number of is we where positioning pronounce begun our our categories And to officially and relentless are position to our and it our low-cost pillar so, are focus kicks low-price in why everyday our they're it on our everyday every not around because waiting that. support across they committed affordability is one for

is categories sum of looking a I other continued the for pain say up it. fuel, all that with we've to way. we how after call feeling customer uniquely I someone them we're what the win at would the and think quarter, a so, points recession, positioned share are reflect I would tobacco, gains, that's So, that fact to demonstrate results quarter the the that would

much guys. so Thanks

Raymond Bobby Griffin at We James. go you. next to Thank now

my and X% when comp one total for Andrew morning, a question, first clarification gallons taking a Good Just in that questions. you are quick referencing everybody is the gallon thanks decline or number? gallons, number

darn pretty Speakers] a That's store. [Multiple for

acquiring you question QuickCheks. little guess is, years over, since guess second we're I Thank my and here two a I

into core talk are as at could about that and integrating leveraging journey of maybe you some a the operation So where brought of Murphy's capabilities we also new back business little the well? hoping QuickChek that bit acquired in guys

Yeah, nature learnings. to We've we I use at done QuickChek. got the later integration the we're about largely terms our tools is core of C-BX that centrally, the mean the synergies and around capabilities being there, a stage systems resources embedded and That of some exception common opportunity QuickChek to like the Murphy lot the back and step been that up those there on systems our the think innings. have looking side munitions accelerated and of alignment some systems both look We've that reporting in and have talked they at captured. in that includes what's as but functions, of unique the technology. what had have is There about merchandise been we been integration through done

with the of invest the the Murphy we we're and on in given as going we've and where to and win categories also, Murphy kind QuickChek where play embarked juxtaposition that's side. where QSR on had understand food beverage right strategy the We inform and beverage entire and the helped food we're really been to to food of investing its able enterprise, for model in certain

energy the we're if of and drinks business the leadership opportunities as the the QuickChek going the both think QuickChek on category drink for lot that's are of created and some side, we see Murphy about Energy. and accelerated continued frozen made-to-order has Innovation opportunity we business energy for made-to-order there a unique, In

with pleased very So that.

the you especially where that the fixed Certainly business brands and being to we're digital asset pickup. do that but great lot new we absolutely store going are just back transformation from scale to space the cost doing, of and of a doing fueling the and New to across extent contrast two standpoint, new markets and on but from in Texas a get able occur. able like with those. seeing the initiatives bigger it's Laredo, recovered in do opened the compare We a open certainly, development a can you one I to we're also stores. benefit a been Murphy it with so the we're where keep back-to-work brands, as hasn't office and lanes both continue synergies commercial Jersey market We in on, Bobby same pilots the

and favorable environment before. is then. guess, the talked helpful in I'm that's we view of yes, about margin post-COVID the it higher agree historical retail to your just me, of Okay, and for guess I now why as structurally that kind of to now this $X.XX team's used And asking are think you higher on structurally and margins completely lot the we've was couple in the or $X.XX $X.XX about that. a quarter for environment? a line $X.XX in I that secondly just we drivers with PS&W that of sustainability Is business to been the behind and context item, we

No.

a bit call. I think in this we to last our alluded little

spot-to-rack XXXX, felt a to to net of facilities. reduction XXXX, go from refinery of incentives pressure. either would was or period of renewable the they regulations, pressures with diesel call back have to There's at capacity, and you the you've refineries the out our lot have Coming in I demand capacity, seen If refinery COVID and refiners long market and the converted either fuels, saw XXXX, faced around plenty the some destruction you racks we the greater the that say of being closing renewable win of with price supply discounts against so oversupplied, transfer kind loose.

environment, months where we've the what of a measure you tighter XX takes shorter, a at result refined especially our discounting level price. we don't same as so last product and spot-to-rack XX, place seen, much the racks, is see over that And XX, the transfer

it or a expect to market as that, remains a in way the long of the we currently as tune so, certainly so tight gallon And maintain some penny short the is. and of

very good Okay, congrats again details, on and the appreciate helpful. quarter. I a

Thanks, Bobby.

Bonnie of to go We Sachs. Herzog to now Goldman next you. Thank

question Good seemed your the which in on Hi, decelerated Thank guess quarter, basis. bit gallon on (ph) had morning, you. and stack full-year [SS] everyone. soft a a it growth a I I sequentially

Andrew, think little the a on sort what was in bit strong the inside to more merchandise of bit maybe little Maybe, some growth. drove So. reconciled trying about on that your I a sales your on could provide pressures strong you comp color with conversion touch growth? growth store context despite and gallon

mean of I side, at about gallon if environment the talked margins. as price related the on we it the so that to look you Yes, kind

On and always But so acceleration see prices price same a as certainly customer margin, payment be throughout from you lower in didn't may not to to the standpoint. with the be there's margin, fees the prices the on you sensitive. quarter benefit some that going

we point I we we grew up run the think environment in last gallons the on that top this grew important of gallons experienced is so. when still year prices, in

on a pennies. you kept one to gained you think lower-price last consumer because picked further way gained that give out the save and we And we didn't little prices of some their talked more, the of extra a willing are we found was only to of in about, high, he was, we per-store environment the demand really some a we a go up I going were customers basis, so. year, and to what And want all customer back hey, few things the bit to

we've I loyalty the a and store, reflection loyal, think like. that's more the of got visit that the they're fact they program, the

introduction. stores, whether on are it's I constantly new mean, promotional it's doing the a and resets, it's whether know product activity, the things, it's You the whether raise the whether merchandise the side, new where we rebuild, it's new

that of the we're of doing what side. of set independent whole fuel on a initiatives are there's kind So,

and to kind fuel quarter traffic, when I has at and merchandise new what's this that the performance. put and impressive initiatives the growth, were think despite pleased, to clip certainly faster the all last categories response speaks rebuild team of we year to in grow in grew those raise gallon So stores think we an is that fuel saw the I even categories place, attached which

agree that definitely encouraging. Yeah, I sounds

that just then color. And for more thanks question for quick So me. maybe one

QX strong you guidance guidance. just and outlook few you. historical results you do thinking the made that being greater Does QX year, the context the and it your this in full-year impact the about of about Given change in that comments than your so framing at there or and in you the all, again mindful during Thank that given if to see upside for your be is this quarters, just next quarter. something strength of saw

Yes. of be XXXX third the quarter there mindful I call they made right? time, would years. that even point down, but I significantly. And you'd plenty just if wrong. back would the at go of been up have came of in nature have quarter this been went in mean, then when you the prices industry, fourth down I'll instead to seasonally fuel

potential have of we the especially think year a if versus range around factors around I volatility the discussions over taken $X.XX we a lot detracts will and and of isn't discussion $X.XX the a we've business view price it to with and long-term dynamics. intentionally because getting So, from guidance closer point helpful, update quarter the the set next the margins, new quarter that range, of of end the says, up look,

how heading where that is to XX going this to the the over stay what return capital be as would the focused just shareholders is business we of the five five flow that free grow I going to everyone years, three to generation, allocator years, cash next on going encourage worth. to are stores, to a then disciplined how improvement and and new value that initiatives is from to what's

much, so you Andrew. thank Okay,

Thanks.

to go of Instructions] John now JPMorgan. [Operator Royall next We'll

taking for good question. morning. Hi guys, my Thanks

the big in RIN increase strength sales I know which price might So like in there some color of it driven. appears driving looking RINs plus and bit inventories so I have was a for had XQ, little RINs PS&W sales. the volume of on it take Did up saw margin. some from much, looks just down been wasn't it RINs think that a RIN like a you in we perspective, the you

sold Mindy. was period. RINs We some the color RINs was we I of year we million rooms more them Hi, pretty that $X.XX that the sold for on saw It and price last number bigger the the much John this you X driver. is give we $X.XX versus a last average can quarter, actually year, year-ago with same all. on in sold than for the

Okay.

it's would a follow-up see from the there, it you just an side, price I offset feel then of would typically it seen So, really mean, was typically kind it have happened. like revenue PS&W

It correct. entire, is

Yes.

maybe So plus PS&W strengthen the some maybe the color on why just just margin. RINs

business due impact. you'd a prices what timing was and to well it of part opposite decreases of the the dynamics price the tends versus and Most pricing, or to of in uncontrollable inventory do of the impact we environment, periods just falling rising of due increases to the see price market the business of call on the pricing part

sales the the the the RINs difference so, in environment market are fourth versus primarily. And versus on quarter results predicated

RINs were sales, look they light you quarter. fourth at quarter If first versus

again difference, don't we're even with is RINs, a we environment in regard where the you sell that quarter strictly still because but is that remaining So just in, that to many the have pricing spot-to-rack a differential. offset as the difference

think, And Thank I can quarter, beyond the and tracking quarter, that coming things Understood. quarter-over guidance and range guidance ahead low-end out going yourself my is point is of there XQ we I there, you then you. second straight you guidance? or what's actually wage then to OpEx up mentioned in station trending are down and of see really that get sort is uplift to did you some well below of that inflation terms the in very just of for maybe back well, think range like you'll March, out and you consider into this in follow mentioned the came on of think

a we as across higher revised another haven't on and headwind I wage we orders, renewals, et be challenge expected probably inflation now. right side. the area contract our Shrink Yes, has would to is is retail say, it look a guidance, that's think that's cetera, noted Maintenance work I expenses, moderated.

a takes certain lot always we take well as just there's some puts timing on there's programs of et and or when maintenance initiatives cetera. sometimes issues So, as

think store as declaring all at our of staff we downtime but we've hands-on to costs, looking got changing over point at won't So, be I retention time, as improvement initiatives any to in like this number. kind reduce well of at deck, or the constantly on victory guidance avoid the cost,

you. Thank

at We will Stephens. go Bienvenu now to Ben

everybody. morning, good Hey,

Good morning.

spend, obviously I to elevated to SG&A So ask wanted about relative history.

that of making Can investments little that item? benefits You in the about the to more deploying organization. a capabilities expect incremental SG&A guys have you pointing around spend to the from line harvest for you're the detail you're bit the some you been talk

Absolutely. some the of And got service you have alignment initiatives the that. the things a range million some $X that to fees the also whole of there around million million the $X two $X some variances, across but is of brands, professional might incentives where which, to certainly quarter for the for and include we in

to sub-segments this understand them target around then to mean, efficiently the detailed of clearly define more from able better. on effectively and two biggest customers, promotional detailed be to grow and are activities we've those digital talked I to DNA strands, revenue is going insight how how transformation, to and initiatives more target more understand We us about margin, allow

it. also revenue margin a of cost There's element

with insight, be on stock, the got and forecasting to that in pen waste at used better better. reduce production a where to then demand you've sure paper and So, model done do get us to allow make QuickChek but that to store in pad, labor that look as and too at much being that are better planning algorithms the we builds not to able sophisticated more to overlay learning technology built-in with

to benefits going you're So tangible both the cost the side, see side, on the merchandise side real and Ben, revenue margin the waste labor like. cost side, the merchandise

over year out exceeded of front launched and about we but expectation, initiatives. pilots prior those well to excited So, some benefits point of those and in our the year across we're this have, years at into of We're of benefits of, all the in time. campaigns not getting the promising some similar early in types way kind

center stores. similarly, opportunities we stores the the around square assortment, the go, re-heating and are how offers the grab further foot well as that are On resets campaign, about dispensed experience stores, Murphy and envisioning merchandise, optimizing as X,XXX grab-and-go, the think at in-store there

so that And that stick will into as well benefits existing a to year on there. retrofits assess pilot the be building account takes some this store we stores as layout doing

in opportunities again, those to the revenue, more the certainly And share around But impact have past, our then details areas. and like those will we cost we've results those when you we investor's the we pilots, transparent guidance. give be will speak and done margin, benefits full-year and with as both of specific

idiosyncratic to second have me, because, first mindful being the the you back joined buyback first The obviously right the call And may your either in why was small share the of there anything more billion the it is share that be to small was going forgive related $X.X answer maybe of precluded this. from in just this program. back, repurchase. covered buy may you clearly great. time Okay, on quarter, activity because maybe strong. relative in are or stock The to I My question quarter quarter buying conspicuously so late, the new kind particularly results but repurchase was first juxtaposed

Yes.

know going on or more we comment so buy I kids, my that on because the various say use we to not people sometimes I only are out I'm would say, outlooks are I not less periods but depending just response, look, do that factors think there. where

get So into we'll that.

is store current you say simply ways margin, at where buybacks the March growth, about in see up once over years we do flow Investor again did pricing year the initiatives, EBITDA to share million in new will a increase frankly shares in from you on free back at it's committed already formalization million normalized $X.X I fuel at of five year a believe going we generated the to know, the shares just highlighted what some small what billion. where and generation, What Conference the we've a cash investors the based authorization next a

into up getting And $XXX right was expect have with be wrapped so so and not align certainly and that year to if important that the million by authorization to authorization a we completing formal the commitment before end, we'll just felt next it after.

Okay, sense. Thanks so Congratulations. makes much.

Thanks.

we Mr. further back ladies things like it no And and appears to have closing questions any to today. you. I'd gentlemen, Clyde. comments. for Thank turn you

look a as at to the about and the the out thanks we our I everyone stands analyst, shareholder really total proposition think great XX-years, questions. of view quarter, for the think and capital you we the any allocation, that presented. very to potential good it is value follow growth look-forward look the Well, you free future five Great. say, I to just have, we've cash own investors. that this We'll up, look It's we'll EBITDA commitment disciplined about on quarter. flow its our evidence when feel delivers around more calls business as the up generation, at return you would you much of look with that

we'll So, to follow-ups. thank any you again and look-forward

Murphy gentlemen Mr. We'd the for day. us Goodbye. that you, you much First great to a Call. XXXX USA and Earnings Thank and will thank conclude so all Quarter Ladies Conference wish Results you like all joining Clyde.