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EX - 99.1 2 dk - ex991earningsreleasex06.htm EX - 99.1 Delek US Exhibit 99.1 • • • • • • • Delek US Holdings Reports Second Quarter 2021 Results Reported second quarter net loss of $ ( 81.1 ) million or $ ( 1.10 ) per share and adjusted EBITDA of $ 2.0 million Seasonal increase in second quarter retail contribution margin following a record first quarter performance Resuming growth campaign in retail with two " New - to - Industry " locations in planning phase Logistics performance rebounded sequentially given the absence of winter weather and maintenance in 1Q Received full $ 156 million federal tax refund in the third quarter Actively pursuing “ small refinery exemptions " ( SRE's ) and insurance claims from fire / freeze events Maintained strong balance sheet with $ 833 million of cash as of June 30 , 2021 -- BRENTWOOD , Tenn .-- August 3 , 2021 Delek US Holdings , Inc. ( NYSE : DK ) ( “ Delek US " ) today announced financial results for its second quarter ended June 30 , 2021. Delek US reported a second quarter 2021 net loss of $ ( 81.1 ) million , or $ ( 1.10 ) per share , versus net income of $ 87.7 million , or $ 1.18 per diluted share , for the quarter ended June 30 , 2020. On an adjusted basis , Delek US reported an Adjusted net loss of $ ( 65.2 ) million , or $ ( 0.88 ) per share , for the second quarter 2021 . This compares to Adjusted net loss of $ ( 121.7 ) million , or $ ( 1.66 ) per share , in the prior year . Adjusted earnings before interest , taxes , depreciation and amortization ( " Adjusted EBITDA " ) was $ 2.0 million for the second quarter compared to Adjusted EBITDA of $ ( 99.6 ) million in the prior year . Adjusted quarterly results include approximately $ 25.3 million ( after - tax ) , or $ 0.34 per share , of tailwinds which is comprised of the following : a net favorable estimated " other inventory impact " of $ 51.5 million ( pre - tax ) as outlined on page 14 , as well as other net inventory hedging gains in the amount of $ 1.8 million ( pre - tax ) and outlined by segment in the table on page 10 , partially offset by a charge of approximately $ ( 12.3 ) million ( pre - tax ) related to a RINs inventory true - up adjustment at the El Dorado Refinery , and a charge of approximately $ ( 8.3 ) million ( pre - tax ) relating to the accrual of an unrecoverable crude wholesale contract fee . Separate from items outlined above , multiple factors impacted operations during the quarter , including residual effects of the first quarter freeze and fire , as well as the Colonial pipeline shutdown . While we cannot know what our EBITDA would have been , these events caused us to experience operational disruptions and incur incremental costs related to property damages that significantly affected our results . The incremental expenses , combined with second quarter - related business interruption insurance claims prepared to - date , totaled roughly $ 40- $ 45 million . We are actively working with insurance carriers on both our property damage and business interruption claims , and recoveries will be recognized in the coming quarters . Uzi Yemin , Chairman , President and Chief Executive Officer of Delek US , stated , " Results were negatively affected by a host of factors including turnaround activity , lingering winter weather and fire impacts , third - party pipeline outages and elevated RIN prices . We are working with our insurance carriers to offset financial impacts relating to the freeze and fire at El Dorado and we are actively pursuing small refinery exemptions . Separately , we received the full $ 156 million federal tax refund in the third quarter . The combination of the tax refund , insurance proceeds and possibility for small refinery exemptions have the potential to generate significant cash for our company in the near - term . " Mr. Yemin continued , " Our retail business continues delivering strong results and we are pleased to resume our growth campaign in this segment with two New - to - Industry " NTI ” stores in the planning phase . We expect to break ground on these stores at the beginning of the year with operations anticipated around mid - year 2022. We expect these stores to validate our NTI concept , which has proven successful to - date . Delek Logistics ( DKL ) successfully raised $ 400 million of debt through a senior notes offering , creating balance sheet flexibility and extending our debt maturities . Distribution growth at DKL remains on - track for a 5 % increase year - over - year . We remain confident in the outlook for our business as global economic growth accelerates . "