FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the Period Ended November 30, 1997
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from to
Commission File No. 333-35083
UNITED REFINING COMPANY (see Table of Additional Registrants)
-------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Pennsylvania 25-1411751
------------ ----------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Idenfication No.)
15 Bradley Street
Warren, Pennsylvania 16365
-------------------- -----
(address of principal (Zip Code)
executive office)
814-726-4674
------------
Registrant's telephone number, including area code
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934
during the preceding 12 months (or for such shorter period that the registrant
was required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes [X] No [ ]
Number of shares outstanding of Registrant's Common Stock as of January 14,
1998: 100.
1
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<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------------
TABLE OF ADDITIONAL REGISTRANTS
- --------------------------------------------------------------------------------------------------------------------------------
State of Other Primary Standard IRS Employer
Jurisdiction of Industrial Classification Identification Commission File
Name Incorporation Number Number Number
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Kiantone Pipeline New York 4612 25-1211902 333-35083-01
Corporation
- --------------------------------------------------------------------------------------------------------------------------------
Kiantone Pipeline Company Pennsylvania 4600 25-1416278 333-35083-03
- --------------------------------------------------------------------------------------------------------------------------------
United Refining Company of Pennsylvania 5541 25-0850960 333-35083-02
Pennsylvania
- --------------------------------------------------------------------------------------------------------------------------------
United Jet Center, Inc. Delaware 4500 52-1623169 333-35083-06
- --------------------------------------------------------------------------------------------------------------------------------
Kwik-Fill, Inc. Pennsylvania 5541 25-1525543 333-35083-05
- --------------------------------------------------------------------------------------------------------------------------------
Independent Gas and Oil New York 5170 06-1217388 333-35083-11
Company of Rochester, Inc.
- --------------------------------------------------------------------------------------------------------------------------------
Bell Oil Corp. Michigan 5541 38-1884781 333-35083-07
- --------------------------------------------------------------------------------------------------------------------------------
PPC, Inc. Ohio 5541 31-0821706 333-35083-08
- --------------------------------------------------------------------------------------------------------------------------------
Super Test Petroleum, Inc. Michigan 5541 38-1901439 333-35083-09
- --------------------------------------------------------------------------------------------------------------------------------
Kwik-Fil, Inc. New York 5541 25-1525615 333-35083-04
- --------------------------------------------------------------------------------------------------------------------------------
Vulcan Asphalt Refining Delaware 2911 23-2486891 333-35083-10
Corporation
- --------------------------------------------------------------------------------------------------------------------------------
</TABLE>
2
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UNITED REFINING COMPANY
AND SUBSIDIARIES
Index
PART 1. FINANCIAL INFORMATION PAGE(S)
Item 1. Financial Statements
Consolidated Balance Sheets -
November 30, 1997 and August 31, 1997 4
Consolidated Statements of Operations -
Quarters Ended November 30, 1997 and 1996 5
Consolidated Statements of Cash Flows -
Quarters Ended November 30, 1997 and 1996 6
Notes to Consolidated Financial Statements 7
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations 8-10
PART II. OTHER INFORMATION 11
3
<PAGE>
Part 1 -- Financial Information
Item 1. Financial Statements
<TABLE>
<CAPTION>
UNITED REFINING COMPANY
AND SUBSIDIARIES
Consolidated Balance Sheets
(in thousands)
November 30, August 31,
1997 1997
(Unaudited)
-------- --------
<S> <C> <C>
Assets
Current:
Cash and cash equivalents .......................................................... $ 13,077 $ 11,024
Accounts receivable, net ........................................................... 24,015 29,762
Inventories ........................................................................ 65,725 67,096
Prepaid expenses and other assets .................................................. 6,184 6,786
Deferred income taxes .............................................................. 703 712
-------- --------
Total current assets .................................................... 109,704 115,380
-------- --------
Property, plant and equipment:
Cost ............................................................................... 242,120 234,956
Less: accumulated depreciation .................................................... 63,021 60,757
-------- --------
Net property, plant and equipment ....................................... 179,099 174,199
-------- --------
Restricted cash and cash equivalents and investments .................................... 44,790 48,168
Deferred financing costs ................................................................ 7,715 7,807
Other assets ............................................................................ 902 838
-------- --------
$342,210 $346,392
-------- --------
Liabilities and Stockholder's Equity
Current:
Current installments of long-term debt ............................................. $ 220 $ 218
Accounts payable ................................................................... 20,614 29,010
Accrued liabilities ................................................................ 20,175 13,753
Sales, use and fuel taxes payable .................................................. 11,568 13,056
-------- --------
Total current liabilities ............................................... 52,577 56,037
-------- --------
Long term debt: less current installments .............................................. 200,998 201,054
Deferred income taxes ................................................................... 17,862 17,390
Deferred gain on settlement of pension plan obligations ................................. 2,366 2,420
Deferred retirement benefits ............................................................ 10,546 10,797
Other noncurrent liabilities ............................................................ 4,199 5,757
-------- --------
Total liabilities ....................................................... 288,548 293,455
-------- --------
Commitments and contingencies
Stockholder's equity:
Common stock, $.10 par value per share - shares authorized
100; issued and outstanding 100
Additional paid-in capital ......................................................... 7,150 7,150
Retained earnings .................................................................. 46,512 45,787
-------- --------
Total stockholder's equity .............................................. 53,662 52,937
-------- --------
$342,210 $346,392
-------- --------
See accompanying notes to consolidated financial statements.
</TABLE>
4
<PAGE>
<TABLE>
<CAPTION>
UNITED REFINING COMPANY
AND SUBSIDIARIES
Consolidated Statements of Operations - Unaudited
(in thousands)
Three Months Ended
November 30,
1997 1996
--------- ---------
<S> <C> <C>
Net sales ....................................................................... $ 213,302 $ 227,264
Cost of goods sold .............................................................. 186,121 201,725
--------- ---------
Gross profit .......................................................... 27,181 25,539
--------- ---------
Expenses:
Selling, general and administrative expenses ............................... 19,116 17,850
Depreciation and amortization expenses ..................................... 2,274 2,133
--------- ---------
Total operating expenses .............................................. 21,390 19,983
--------- ---------
Operating income ...................................................... 5,791 5,556
--------- ---------
Other income (expense):
Interest income ............................................................ 338 954
Interest expense ........................................................... (5,508) (4,225)
Other, net ................................................................. (30) (175)
--------- ---------
(4,584) (4,062)
--------- ---------
Income before income tax expense ...................................... 1,207 1,494
Income tax expense .............................................................. 482 592
--------- ---------
Net income ...................................................................... $ 725 $ 902
See accompanying notes to consolidated financial statements.
</TABLE>
5
<PAGE>
<TABLE>
<CAPTION>
UNITED REFINING COMPANY
AND SUBSIDIARIES
Consolidated Statements of Cash Flows -- (Unaudited)
(in thousands)
Three Months Ended
November 30,
1997 1996
-------- --------
<S> <C> <C>
Cash flows from operating activities:
Net income ...................................................................... $ 725 $ 902
Adjustments to reconcile net income to net
cash provided by (used in) operating activities:
Depreciation and amortization ............................................. 2,436 2,188
Post-retirement benefits .................................................. (251) 18
Change in deferred income taxes ........................................... 472 512
(Gain) loss on asset dispositions ......................................... (72) (121)
Cash used in working capital items ........................................ 2,812 (5,116)
Other, net ................................................................ (167) (67)
-------- --------
Total adjustments ................................................... 5,230 (2,586)
-------- --------
Net cash provided by (used in) operating ............................ 5,955 (1,684)
activities
-------- --------
Cash flows from investing activities:
Additions to property, plant and equipment ...................................... (7,222) (1,029)
Proceeds from asset dispositions ................................................ 120 123
Net cash provided by restricted cash, cash equivalents
and investments ........................................................... 3,378 --
-------- --------
Net cash used in investing activities ............................... (3,724) (906)
-------- --------
Cash flows from financing activities:
Principal reductions of long-term debt .......................................... (54) (63)
Deferred financing costs ........................................................ (124) --
-------- --------
Net cash used in financing activities ............................... (178) (63)
-------- --------
Net increase (decrease) in cash and cash equivalents .................................. 2,053 (2,653)
Cash and cash equivalents, beginning of year .......................................... 11,024 15,511
-------- --------
Cash and cash equivalents, end of year ................................................ $ 13,077 $ 12,858
-------- --------
Cash provided by (used in) working capital items
Accounts receivable, net ........................................................ $ 5,747 $ 356
Inventories ..................................................................... 1,371 (3,892)
Prepaid expenses and other assets ............................................... 611 (235)
Accounts payable ................................................................ (8,396) (3,254)
Accrued liabilties .............................................................. 4,967 4,942
Sales, use and fuel taxes payable ............................................... (1,488) (3,033)
-------- --------
Total change .............................................................. $ 2,812 $ (5,116)
See accompanying notes to consolidated financial statements.
</TABLE>
6
<PAGE>
UNITED REFINING COMPANY
AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(Unaudited)
1. Basis of
Presentation The accompanying unaudited consolidated financial statements
have been prepared in accordance with generally accepted
accounting principles for interim financial information and
with the instructions to Form 10-Q and Rule 10-01 of
Regulation S-X. Accordingly, they do not include all of the
information and footnotes required by generally accepted
accounting principles for complete financial statements. In
the opinion of management, all adjustments (consisting of
only normal recurring accruals) considered necessary for a
fair presentation have been included. Operating results for
the three month period ended November 30, 1997 are not
necessarily indicative of the results that may be expected
for the year ending August 31, 1998. For further
information, refer to the consolidated financial statements
and footnotes thereto incorporated in the Company's Form
10-K filing dated November 28, 1997.
7
<PAGE>
UNITED REFINING COMPANY
AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(Unaudited)
Recent Developments
World crude oil prices, as indicated by the price of crude oil
contracts trading on the New York Mercantile Exchange (NYMEX), declined
approximately $1.90 per barrel or 9.4% in December NYMEX trading of contracts
for January and February delivery as compared to prices for contracts traded in
November. This will negatively impact December results, as accompanying declines
in industry petroleum product prices reduced the Company's December selling
prices.
The Company has improved yields and increased the capacity of certain
major refinery processing units as the result of maintenance and upgrading
activities performed during scheduled shutdowns of these units in the quarter
ended November 30, 1997. The upgrading activities completed during the quarter
included those associated with the first phase of the refinery expansion and
upgrade portion of the Company's Capital Improvement Plan. As of January 1, 1998
the Company had completed upgrades of 17 retail outlets under the retail network
improvement portion of the Capital Improvement Plan.
Results of Operations
Matters discussed below should be read in conjunction with the
accompanying unaudited financial information. Certain statements contained in
this report are forward-looking. Although management believes that its
expectations are based on reasonable assumptions within the bounds of its
knowledge of its business and operations, there can be no assurance that actual
results will not differ materially from its expectations. Factors that could
cause actual results to differ from expectations include general economic,
business and market conditions, volatility of gasoline prices, merchandise
margins, customer traffic, weather conditions, labor costs and the level of
capital expenditures. For other important factors that may cause actual results
to differ materially from expectations and underlying assumptions, see the
Company's periodic filings with the Securities and Exchange Commission.
Comparison of the Fiscal Quarters ended November 30, 1997 and November 30, 1996.
Net Sales. Net sales decreased $14.0 million or 6.1% from $227.3
million for the fiscal quarter ended November 30, 1996 to $213.3 million for the
fiscal quarter ended November 30, 1997. The decrease was primarily due to
generally lower industry wide prices for gasoline and distillate and to lower
production and sales volumes due to the scheduled shutdown of certain major
refinery processing units for maintenance and capital upgrades during the most
recent quarter. These factors were partially offset by higher asphalt prices for
the quarter ended November 30, 1997 as compared to the quarter ended November
30, 1996. The lower gasoline and distillate prices in the quarter ended November
30, 1997 were the result of lower industry-wide crude oil and petroleum product
prices as compared to the year earlier period.
Cost of Goods Sold. Cost of goods sold decreased $15.6 million or 7.7%
from $201.7 million for the fiscal quarter ended November 30, 1996 to $186.1
million for the fiscal quarter ended November 30, 1997. This decrease was
primarily due to a $4.17 per barrel decrease in the Company's crude oil cost and
to a 4.4% reduction in crude oil processing costs related to the processing unit
shutdowns for maintenance and upgrading.
8
<PAGE>
UNITED REFINING COMPANY
AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(Unaudited)
Operating Expenses. Operating expenses increased $1.4 million or 7.0%
from $20.0 million for the fiscal quarter ended November 30, 1996 to $21.4
million for the fiscal quarter ended November 30, 1997. The increase was
primarily in the Company's retail operations for items including sales
promotions, retail station wages, maintenance and environmental expenses.
Increased sales promotion expenses were primarily due to the Company's
introduction of a new "frequent fueler" program to increase retail gasoline
volume. Increased retail wages were the result of an 8% statutory increase in
the federal minimum wage effective September 1, 1997. Retail environmental
expenses were primarily connected with the upgrading of underground storage
tanks to new federal standards and will be partially recovered through future
reimbursement received from indemnification funds from the states of Ohio and
Pennsylvania.
Operating Income. Operating income increased $0.2 million or 4.2% from
$5.6 million for the fiscal quarter ended November 30, 1996 to $5.8 million for
the fiscal quarter ended November 30, 1997. This was primarily the result of
improved refining margins for gasoline and asphalt, partially offset by reduced
refining margins for distillate and by increased retail operating expenses.
Interest Expense. Net interest expense (interest expense less interest
income) increased $0.7 million from $3.9 million for the fiscal quarter ended
November 30, 1996 to $4.6 million for the fiscal quarter ended November 30,
1997. The increase was due to an increase in the amount of long-term debt
outstanding following the Company's sale of $200 million of Senior Notes in June
1997. This was partially offset by a reduction in the average interest rate for
long-term debt outstanding.
Income Taxes. The provisions for income taxes for the fiscal quarters
ended November 30, 1996 and November 30, 1997, has been based upon management's
estimate of its annualized effective tax rate.
Liquidity and Capital Resources
Working capital (current assets minus current liabilities) at November
30, 1997 was $57.1 million and at August 31, 1997 was $59.3 million. The
Company's current ratio (current assets divided by current liabilities) was
2.09:1 at November 30, 1997, and was 2.06:1 at August 31, 1997.
Net cash provided by operating activities totalled $6.0 million for the
three months ended November 30, 1997 compared to net cash used in operating
activities of $1.7 million for the three months ended November 30, 1996.
Net cash used in investing activities for purchases of property, plant
and equipment totalled $7.2 million and $1.0 million for the three months ended
November 30, 1997 and 1996, respectively. For the three months ended November
30, 1997, the Company used $3.4 million of restricted cash, cash equivalents and
investments to fund the Company's Capital Improvement Plan.
The Company reviews its capital expenditures on an ongoing basis. The
Company currently has budgeted approximately $28.2 million for capital
expenditures in fiscal 1998 with $3.3 million for completion of projects
relating to underground storage tanks. The remaining $24.9 million for fiscal
1998 is budgeted for the refinery expansion and retail capital improvement
program, refinery environmental compliance and routine maintenance. The refinery
9
<PAGE>
UNITED REFINING COMPANY
AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(Unaudited)
expansion and retail capital improvement program is expected to be completed in
fiscal 1999. Maintenance and non-discretionary capital expenditures have
averaged approximately $4 million annually over the last three years for the
refining and marketing operations. Management does not foresee any increase in
the maintenance and non-discretionary capital expenditures during fiscal 1998.
Future liquidity, both short and long-term, will continue to be primarily
dependent on realizing a refinery margin sufficient to cover fixed and variable
expenses, including planned capital expenditures. The Company expects to be able
to meet its working capital, capital expenditure and debt service requirements
out of cash flow from operations, cash on hand and borrowings under the
Company's bank credit facility with PNC Bank, National Association. Although the
Company is not aware of any pending circumstances which would change its
expectation, changes in tax laws, the imposition of and changes in federal and
state clean air and clean fuel requirements, and other changes in environmental
laws and regulations may also increase future capital expenditure levels. Future
capital expenditures are also subject to business conditions affecting the
industry. The Company continues to investigate strategic acquisitions and
capital improvements to its existing facilities.
Federal, state and local laws and regulations relating to the
environment affect nearly all the operations of the Company. As is the case with
all companies engaged in similar industries, the Company faces significant
exposure from actual or potential claims and lawsuits involving environmental
matters. Future expenditures related to environmental matters cannot be
reasonably quantified in many circumstances due to the uncertainties as to
required remediation methods and related clean-up cost estimates. The Company
cannot predict what additional environmental legislation or regulations will be
enacted or become effective in the future or how existing or future laws or
regulations will be administered or interpreted with respect to products or
activities to which they have not been previously applied.
Seasonal Factors
Seasonal factors affecting the Company's business may cause variation
in the prices and margins of some of the Company's products. For example, demand
for gasoline tends to be highest in spring and summer months, while demand for
home heating oil and kerosene tends to be highest in the winter months. As a
result, the margin on gasoline prices versus crude oil costs generally tends to
increase in the spring and summer, while margins on home heating oil and
kerosene tend to increase in winter.
Also, because winter weather in the Company's market is not favorable
for paving activity, the Company's asphalt sales in winter months are composed
of a much lower percentage of paving asphalt and a correspondingly higher
percentage of roofing asphalt whose demand is much less seasonal. In addition,
the Company stores a significant portion of winter asphalt production for sale
the following spring and summer.
10
<PAGE>
Part II - Other Information
Item 1. Legal Proceedings
None
Item 2. Changes in Securities
None
Item 3. Defaults upon Senior Securities
None
Item 4. Submission of Matters to a Vote of Security Holders
None
Item 5. Other Information
None
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibit 27 - Financial Data Schedule
(b) No reports on Forms 8-K have been filed for
the quarter for which this report is being filed.
11
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Date: January 14, 1998
UNITED REFINING COMPANY
---------------------------------------
(Registrant)
/s/ Myron L. Turfitt
---------------------------------------
Myron L. Turfitt
President
/s/ James E. Murphy
---------------------------------------
James E. Murphy
Chief Financial Officer
12
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Date: January 14, 1998
KIANTONE PIPELINE CORPORATION
---------------------------------------
(Registrant)
/s/ Myron L. Turfitt
---------------------------------------
Myron L. Turfitt
President
/s/ James E. Murphy
---------------------------------------
James E. Murphy
Chief Financial Officer
13
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Date: January 14, 1998
UNITED REFINING COMPANY OF PENNSYLVANIA
---------------------------------------
(Registrant)
/s/ Myron L. Turfitt
---------------------------------------
Myron L. Turfitt
President
/s/ James E. Murphy
---------------------------------------
James E. Murphy
Chief Financial Officer
14
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Date: January 14, 1998
KIANTONE PIPELINE COMPANY
---------------------------------------
(Registrant)
/s/ Myron L. Turfitt
---------------------------------------
Myron L. Turfitt
Executive Vice President
/s/ James E. Murphy
---------------------------------------
James E. Murphy
Chief Financial Officer
15
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Date: January 14, 1998
UNITED JET CENTER, INC.
---------------------------------------
(Registrant)
/s/ Myron L. Turfitt
---------------------------------------
Myron L. Turfitt
Executive Vice President
/s/ James E. Murphy
---------------------------------------
James E. Murphy
Chief Financial Officer
16
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Date: January 14, 1998
KWIK-FILL, INC.
---------------------------------------
(Registrant)
/s/ Myron L. Turfitt
---------------------------------------
Myron L. Turfitt
Executive Vice President
/s/ James E. Murphy
---------------------------------------
James E. Murphy
Chief Financial Officer
17
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Date: January 14, 1998
INDEPENDENT GASOLINE AND OIL COMPANY
OF ROCHESTER, INC.
---------------------------------------
(Registrant)
/s/ Myron L. Turfitt
---------------------------------------
Myron L. Turfitt
Executive Vice President
/s/ James E. Murphy
---------------------------------------
James E. Murphy
Chief Financial Officer
18
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Date: January 14, 1998
BELL OIL CORP.
---------------------------------------
(Registrant)
/s/ Myron L. Turfitt
---------------------------------------
Myron L. Turfitt
Executive Vice President
/s/ James E. Murphy
---------------------------------------
James E. Murphy
Chief Financial Officer
19
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Date: January 14, 1998
PPC, INC.
---------------------------------------
(Registrant)
/s/ Myron L. Turfitt
---------------------------------------
Myron L. Turfitt
Executive Vice President
/s/ James E. Murphy
---------------------------------------
James E. Murphy
Chief Financial Officer
20
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Date: January 14, 1998
SUPER TEST PETROLEUM, INC.
---------------------------------------
(Registrant)
/s/ Myron L. Turfitt
---------------------------------------
Myron L. Turfitt
Executive Vice President
/s/ James E. Murphy
---------------------------------------
James E. Murphy
Chief Financial Officer
21
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Date: January 14, 1998
KWIK-FIL, INC.
---------------------------------------
(Registrant)
/s/ Myron L. Turfitt
---------------------------------------
Myron L. Turfitt
Executive Vice President
/s/ James E. Murphy
---------------------------------------
James E. Murphy
Chief Financial Officer
22
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Date: January 14, 1998
VULCAN ASPHALT REFINING CORPORATION
---------------------------------------
(Registrant)
/s/ Myron L. Turfitt
---------------------------------------
Myron L. Turfitt
Executive Vice President
/s/ James E. Murphy
---------------------------------------
James E. Murphy
Chief Financial Officer
23
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> Aug-31-1998
<PERIOD-START> Sep-01-1997
<PERIOD-END> Nov-30-1997
<CASH> $13,077
<SECURITIES> $0
<RECEIVABLES> $24,015
<ALLOWANCES> $543
<INVENTORY> $65,725
<CURRENT-ASSETS> $109,704
<PP&E> $242,120
<DEPRECIATION> $63,021
<TOTAL-ASSETS> $342,210
<CURRENT-LIABILITIES> $52,577
<BONDS> $200,988
0
0
<COMMON> 0
<OTHER-SE> $53,662
<TOTAL-LIABILITY-AND-EQUITY> $342,210
<SALES> $213,302
<TOTAL-REVENUES> $213,302
<CGS> $186,121
<TOTAL-COSTS> $19,116
<OTHER-EXPENSES> $0
<LOSS-PROVISION> $75
<INTEREST-EXPENSE> $5,724
<INCOME-PRETAX> $1,207
<INCOME-TAX> $482
<INCOME-CONTINUING> $725
<DISCONTINUED> $0
<EXTRAORDINARY> $0
<CHANGES> $0
<NET-INCOME> $725
<EPS-PRIMARY> $0
<EPS-DILUTED> $0
</TABLE>
