HollyFrontier 2014 Annual Report Download - page 43

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Table of Content
35
Results Of Operations
Financial Data
Years Ended December 31,
2014 2013 2012
(In thousands, except per share data)
Sales and other revenues $ 19,764,327 $ 20,160,560 $ 20,090,724
Operating costs and expenses:
Cost of products sold (exclusive of depreciation and amortization):
Cost of products sold (exclusive of lower of cost or market inventory
valuation adjustment) 17,228,385 17,392,227 15,840,643
Lower of cost or market inventory valuation adjustment 397,478 — —
17,625,863 17,392,227 15,840,643
Operating expenses (exclusive of depreciation and amortization) 1,144,940 1,090,850 994,966
General and administrative expenses (exclusive of depreciation and
amortization) 114,609 127,963 128,101
Depreciation and amortization 363,381 303,446 242,868
Total operating costs and expenses 19,248,793 18,914,486 17,206,578
Income from operations 515,534 1,246,074 2,884,146
Other income (expense):
Earnings (loss) of equity method investments (2,007) (2,072) 2,923
Interest income 4,430 5,556 4,786
Interest expense (43,646) (68,050) (104,186)
Loss on early extinguishment of debt (7,677) (22,109) —
Gain on sale of assets 866 — 326
(48,034) (86,675) (96,151)
Income before income taxes 467,500 1,159,399 2,787,995
Income tax provision 141,172 391,576 1,027,962
Net income 326,328 767,823 1,760,033
Less net income attributable to noncontrolling interest 45,036 31,981 32,861
Net income attributable to HollyFrontier stockholders $ 281,292 $ 735,842 $ 1,727,172
Earnings per share attributable to HollyFrontier stockholders:
Basic $ 1.42 $ 3.66 $ 8.41
Diluted $ 1.42 $ 3.64 $ 8.38
Cash dividends declared per common share $ 3.26 $ 3.20 $ 3.10
Average number of common shares outstanding:
Basic 197,243 200,419 204,379
Diluted 197,428 201,234 205,274
Other Financial Data
Years Ended December 31,
2014 2013 2012
(In thousands)
Net cash provided by operating activities $ 758,596 $ 869,174 $ 1,662,687
Net cash used for investing activities $ (292,322) $ (526,735) $ (711,104)
Net cash used for financing activities $ (838,392) $ (1,160,035) $ (772,788)
Capital expenditures $ 564,821 $ 425,127 $ 335,263
EBITDA (1) $ 832,738 $ 1,515,467 $ 3,097,402
(1) Earnings before interest, taxes, depreciation and amortization, which we refer to as “EBITDA,” is calculated as net income
plus (i) interest expense, net of interest income, (ii) income tax provision, and (iii) depreciation and amortization. EBITDA
is not a calculation provided for under GAAP; however, the amounts included in the EBITDA calculation are derived from
amounts included in our consolidated financial statements. EBITDA should not be considered as an alternative to net income
or operating income as an indication of our operating performance or as an alternative to operating cash flow as a measure
of liquidity. EBITDA is not necessarily comparable to similarly titled measures of other companies. EBITDA is presented
here because it is a widely used financial indicator used by investors and analysts to measure performance. EBITDA is also
used by our management for internal analysis and as a basis for financial covenants. EBITDA presented above is reconciled