2017 - SIGMA · to meeting demand, is reflected in this 2017 Annual Statistical Report. NUMBER OF EMPLOYEES (GASOLINE OR C-STORE ONLY) NUMBER OF GALLONS SOLD (BILLIONS) NUMBER OF

IGM • MAY | JUNE 2017 | 71

I N D E P E N D E N T G A S O L I N E M A R K E T I N G

2017STATISTICAL REPORT

AN IN-DEPTH

SURVEY OF SIGMA

MEMBERS

OPERATIONS, SALES,

AND SERVICE

DURING 2016

2017_IGM_MAY_JUNE.indd 71 5/3/17 12:37 PM

D

2017 SIGMA STATISTICAL REPORT


AB

SIGMA STATISTICAL REPORT 2015

EXECUTIVE COMMITTEE

PresidentThomas G. GreshamDouble Quick, Inc.Indianola, MS

First Vice PresidentDavid BakerWarrenton Oil CompanyWarrenton, MO

Second Vice PresidentWilliam Bradford PuryearMansfield Energy Corp.Gainesville, GA

Secretary TreasurerDavid CollinsWilson Fuel Co. LtdHalifax, NS, Canada

Immediate Past PresidentThomas A. SchmidtU.S. Venture, Inc.Appleton, WI

BOARD OF DIRECTORSBob ColemanColeman Oil CompanyLewiston, ID

Erin GraziosiRobinson Oil CorporationSanta Clara, CA

Richard GuttmanGuttman Energy Inc.Belle Vernon, PA

Doug HartleyThe Hartley CompanyCambridge, OH

David HutchinsonHutchinson Oil Co.Elk City, OK

Jeff LeBeouf2825 Railroad AveCeres, CA

Jeff LykinsLykins Energy SolutionsMilford, OH

Max E. McBrayer, Jr.RaceTrac Petroleum, Inc.Atlanta, GA

Kerry OliverCarterEnergy, a division of World Fuel Services, Inc.Overland Park, KS

Jack C. PesterPester Marketing CompanyHouston, TX

Brian S. YoungYoung Oil, Inc.Piedmont, AL

Joseph ZietlowKwik Trip, Inc.La Crosse, WI

CounselR. Timothy ColumbusSteptoe & Johnson, LLPWashington, DC

Staff LiaisonRyan McNuttSIGMAFairfax, VA 22030

SIGMA PRESIDENTS

Phil L. Siteman1958 1960, Missouri

A.M. Blakely1960 1961, Arizona

Calvin Houghland1961 1962, Tennessee

R.J. Peterson1962 1963, Missouri

George H. Panuska1963 1965, Ohio

Mary Hudson1965 1967, Kansas

James Thornton1967 1968, Indiana

Randy Deer1968 1969, Ohio

R.J. Peterson1969 1972, Illinois

Frederick Lichtman1972 1974, Michigan

Newell Baker1974 1976, Missouri

Herbert A. Sostek1976 1978, Massachusetts

Thomas N. Allen1978 1980, Virginia

Richard L. Singletary1980 1981, Georgia

Roy R. Mason1981 1983, Alabama

Michael S. Kirschner1983 1985, Pennsylvania

John A. Wickland III1985 1987, California

Carl Bolch, Jr.1987 1989, Georgia

F.C. Tally Roberts, Jr.1989-1991, North Carolina

R. H. Tod Butler, Jr.1991-1993, Michigan

Douglas L. True1993-1995, Washington

Leo Liebowitz1995-1997, New York

Bob Phillips, Jr.1997-1999, Oklahoma

Thomas L. Robinson1999-2001, California

Michael Ports2001-2004, Ohio

William S. Shipley, III2004-2006, Pennsylvania

Paul Reid2006-2008, New York

Carl Boyett2008-2010, California

Frank Greinke2010-2012, California

Thomas Schmidt2012-2014, Wisconsin

Thomas Gresham2014-Present, Mississippi

SIGMA STAFF AND COUNSEL

Chief Executive OfficerRyan McNutt [email protected]

Director of EducationDennis [email protected]

Director of Marketing Services and Database ManagerBrian [email protected]

Director of Meetings and Manager of AdministrationMary Alice [email protected]

Staff Support ManagerMaria [email protected]

Director of MarketingNancy [email protected]

Director of Communications and Political EngagementAmy [email protected]

Director of Business DevelopmentMarilyn [email protected]

Assitant Director of MarketingGinny [email protected]

SIGMA EXECUTIVE OFFICES3930 Pender Drive, Suite 340Fairfax, VA 22030PHONE: (703) 709-7000FAX: (703) 709-7007E-MAIL: [email protected]: www.sigma.org

COUNSELR. Timothy [email protected](202)429-6222

Steptoe & Johnson1330 Connecticut Ave. NWWashington, D.C. 20036-1795PHONE: (202) 429 3000FAX: (202) 429-3902

2015 STATISTICAL REPORT

EXECUTIVE COMMITTEE

PresidentDavid BakerWarrenton Oil CompanyWarrenton, MO

First Vice PresidentW. Bradford PuryearMansfield Energy Corp.Gainesville, GA

Second Vice PresidentRichard M. GuttmanGuttman Energy, Inc.Belle Vernon, PA

Secretary TreasurerRobert ColemanColeman Oil CompanyLewiston, ID

Immediate Past PresidentThomas G. GreshamDouble Quick, Inc.Indianola, MS

Board of DirectorsRobert W. BollarSC FuelsOrange, CA

David DobbinsPilot Flying JKnoxville, TN

Bob EspeyParkland Fuel CorporationCalgary, AB Canada




James A. McCarthy IIITom Thumb Food Stores, Inc.Hialeah, FL

Jeff MillerMiller Oil Co., Inc.Norfolk, VA

Kerry OliverWorld Fuel Services, Inc.Overland Park, KS

Joseph H. PetrowskiGulf HoldingNaples, FL

Charles Michael ThornbrughQuikTrip CorporationTulsa, OK


SIGMA PRESIDENTSPhil L. Siteman 1958-1960 Missouri

A.M. Blakely 1960-1961 Arizona

Calvin Houghland 1961-1962 Tennessee

R.J. Peterson 1962-1963 Missouri

George H. Panuska 1963-1965 Ohio

Mary Hudson 1965-1967 Kansas

James Thornton 1967-1968 Indiana

Randy Deer 1968-1969 Ohio

R.J. Peterson 1969-1972 Illinois

Frederick Lichtman 1972-1974 Michigan

Newell Baker 1974-1976 Missouri

Herbert A. Sostek 1976-1978 Massachusetts

Thomas N. Allen 1978-1980 Virginia

Richard L. Singletary 1980-1981Georgia

Roy R. Mason 1981-1983Alabama

Michael S. Kirschner 1983-1985 Pennsylvania

John A. Wickland III 1985-1987 California

Carl Bolch, Jr. 1987 1989 Georgia

F.C. Tally Roberts, Jr. 1989-1991 North Carolina

R. H. Tod Butler, Jr. 1991-1993 Michigan

Douglas L. True 1993-1995 Washington

Leo Liebowitz 1995-1997 New York

Bob Phillips, Jr. 1997-1999 Oklahoma

Thomas L. Robinson 1999-2001 California

Michael Ports 2001-2004 Ohio

William S. Shipley, III 2004-2006 Pennsylvania

Paul Reid 2006-2008 New York

Carl Boyett 2008-2010 California

Frank Greinke 2010-2012 California

Thomas Schmidt 2012-2014 Wisconsin

Thomas Gresham 2014-2016 Mississippi

David Baker 2016-Present Missouri


Chief Operating OfficerMark Franz [email protected]

Director of MeetingsCheryll [email protected]

Assistant Director of MarketingGinny Teague [email protected]

Director of Member Services & Database ManagerBrian [email protected]

Director of AdministrationMary Alice [email protected]

Director of EducationLiz [email protected]

Executive AssistantMaria [email protected]


Director of CommunicationsAmy [email protected]


SIGMA Executive Offices3930 Pender Drive, Suite 340Fairfax, VA 22030PHONE: (703) 709-7000FAX: (703) 709-7007E-MAIL: [email protected]: www.sigma.org

CounselR. Timothy [email protected](202)429-6222

Steptoe & Johnson1330 Connecticut Ave. NWWashington, D.C. 20036-1795PHONE: (202) 429 3000


B


EACH YEAR, SIGMA conducts a survey of its members. This survey enables SIGMA to develop a better understanding of what is happening in the fuels market – which, in turn, allows SIGMA to better serve its members. The report also provides timely information on how SIGMA members are responding to current industry challenges, whether they are legislative, regulatory, or market-related, as well as how they are approaching new opportunities.

2016 continued a period of significant change in the fuel marketing industry and SIGMA members continued to evolve to remain on the cutting edge as the most innovative fuel marketers. Survey responses confirmed that SIGMA members continue to maintain a unique balance between fuel supply and operations management in their

business strategies. This leads to lower consumer prices for both gasoline and diesel fuel and is of tremendous benefit to the overall U.S. economy.

In 2016, SIGMA members also continued to adapt to the changing nature of the fuel marketing industry: declining demand is creating a new market landscape. As new fuels continue to enter the market, SIGMA members’ decisions regarding what fuels to sell remains driven by their availability, as well as federal and state requirements related to their sale. For this reason, implementation of EPA’s Renewable Fuel Standard program still tops the list as one of SIGMA’s most significant issues.

Issues related to payment systems, including data breach and security

legislation and swipe fees, also remain of significant interest to SIGMA members, as do employment matters, such as proposals related to overtime pay and the franchisee-franchisor relationship. SIGMA is responsive to its members’ needs, and has therefore added common sense menu labeling requirements and commercialization of rest areas/Interstate tolling to the list of priority issues under consideration in the 115th Congress.

As the market, both domestic and global, in which SIGMA members operate continues to change, so do SIGMA members’ interests and operations. This ongoing evolution, and SIGMA members’ longstanding commitment to meeting demand, is reflected in this 2017 Annual Statistical Report.

NUMBER OF EMPLOYEES (GASOLINE OR C-STORE ONLY)

NUMBER OF GALLONS SOLD (BILLIONS)

NUMBER OF RETAIL FUELOUTLETS SUPPLIED

344,800

356,050

353,549

382,000

367,023

2016

2015

2014

2013

2012

84.1

81.3

79.5

76.3

67.4

2016

2015

2014

2013

2012

48,935

55,729

50,980

55,800

56,015

2016

2015

2014

2013

2012


C

SIGMA represents approximately 260 member companies operating in all 50 states and Canada. This figure is down slightly in terms of total companies, but is growing as a percentage of the entire industry.

Combined it is estimated that SIGMA members sold more than 70% of motor fuel sold in the United States in 2015.

The 2016 Statistical Report presents the findings of a survey of SIGMA’s members, with an approximate response rate of 28%. This rate is down slightly from 2016.

Data is for fiscal or calendar 2016.

*Note: Numeric responses such as number of gallons sold, environmental expenses, etc. are variable based on which SIGMA members respond to our survey. A higher rate compared to previous years is caused by a higher response rate from SIGMA’s larger member companies.

MEDIAN MEMBER PROFILE The typical SIGMA member (half larger, half smaller) is a substantial company – significantly larger than the typical jobber, although quite small compared to international oil companies.

Please note, that although it would be impressive to include, our numbers exclude the sales of our Associate Members (refiners). They also exclude the non-fuel sales of some Regular Members, such as “big box” retailers and fast food franchisors because we are not attempting to represent them in their main lines of business.

SIGMA MEMBER COMPANY PROFILE

TYPICAL MEMBER PROFILE

6% 20% 20% 20%

29% 29%

33% 39%

47% 56%

67% 83%

OtherTerminalPropane

Mobile RefuelingCardlock

LubesFleet Fueling

Bulk PlantDealer

TransportRetail

Wholesale

COMPANY ACTIVITIES

SIGMA members are motor fuel marketers, but they work in a wide variety of ways and in conjunction with a wide variety of other businesses. Wholesale and retail are the most common operations, followed by transport, bulk plant, and dealer activities.

It is notable that the number of 2017 respondents engaged in wholesaling operations continued to increase from 78% in our 2016 report to 83% this year. This increase may also account for fluctuations in other reported figures throughout this year’s report.

SIGMA STATISTICAL REPORT 2017 B

6%20%20%20%

29%29%

33%39%

47%56%

67%83%

OtherTerminalPropane

Mobile RefuelingCardlock

LubesFleet Fueling

Bulk PlantDealer

TransportRetail

Wholesale

SIGMA MEMBER COMPANY PROFILE SIGMA represents 258 member companies operating in all 50 states and Canada. This figure is down slightly in terms of total companies, but is growing as a percentage of the entire industry. Combined it is estimated that SIGMA members sold more than 70% of motor fuel sold in the United States in 2015. The 2016 Statistical Report presents the findings of a survey of SIGMA’s 261 members, with an approximate response rate of 28%. This rate is down slightly from 2016.

Data is for fiscal or calendar 2016. *Note: Numeric responses such as number of gallons sold, environmental expenses, etc. are variable based on which SIGMA members respond to our survey. A higher rate compared to previous years is caused by a higher response rate from SIGMA’s larger member companies. MEDIAN MEMBER PROFILE The typical SIGMA member (half larger, half smaller) is a substantial company – significantly larger than the typical jobber, although quite small compared to international oil companies.

Please note, that although it would be impressive to include, our numbers exclude the sales of our Associate Members (refiners). They also exclude the non-‐fuel sales of some Regular Members, such as “big box” retailers and fast food franchisors because we are not attempting to represent them in their main lines of business.

TYPICAL MEMBER PROFILE Median Mid-‐Range (Half Larger/Half Smaller) (25th to 75th Percentile) 129.7 million gallons MOTOR FUEL SUPPLIED 43.5 million to 218.2 million gallons 92 RETAIL OUTLETS SUPPLIED 37 to 203 300 EMPLOYEES 90 to 1,132 13 suppliers BUYING FROM MANY DIFFERENT FUEL SUPPLIERS 6 to 26 suppliers 2 brands SELLING FUEL UNDER MULTIPLE BRANDS 1 to 3 brands 3 states OPERATING IN MULTIPLE STATES and PROVINCES 1 to 7 states COMPANY ACTIVITIES

SIGMA members are motor fuel marketers, but they work in a wide variety of ways and in conjunction with a wide variety of other businesses. Wholesale and retail are the most common operations, followed by transport, bulk plant, and dealer activities.

It is notable that the number of 2017 respondents engaged in wholesaling operations continued to increase from 78% in our 2016 report to 83% this year.

This increase may also account for fluctuations in other reported figures throughout this year’s report.

FIX THIS TEXT FORMATTING PLEASE

37

1


D


GEOGRAPHIC SCOPE OF ACTIVITY

SIGMA member firms operated in a mean of 7.3 and a median of 3 states/provinces in 2016. The mid-range operated in 2-8 states/provinces.

Florida (26%) and Indiana, North Carolina, and Virginia (23% each) were most commonly reported by SIGMA members. Eight other states—Alabama, Illinois,

Ohio, Pennsylvania, South Carolina, Tennessee, Texas, and West Virginia—were reported by 21% to 22% of respondents.

Kentucky, Louisiana, and Michigan were also reported by at least 18% of SIGMA members.

Q1=25th percentile Q3=75th percentile

EMPLOYEES

HOW TOTAL INDIVIDUALS EMPLOYED BY YOUR COMPANY CHANGED IN 2016

Most SIGMA respondents (68%) indicated that their total employment increased in 2016, while 22% indicated that it did not change, and 10% indicated a decrease.


Increased 67.6%

Decreased 10.3%

Did not change 22.1%

524

1,486

Total individuals employed bydealers

Total individuals employed byyour company

GEOGRAPHIC SCOPE OF ACTIVITY SIGMA member firms operated in a mean of 7.3 and a median of 3 states/provinces in 2016. The mid-‐range operated in 2-‐8 states/provinces. Florida (26%) and Indiana, North Carolina, and Virginia (23% each)

were most commonly reported by SIGMA members. Eight other states—Alabama, Illinois, Ohio, Pennsylvania, South Carolina, Tennessee, Texas and West Virginia—were reported by 21% to 22% of respondents.

Kentucky, Louisiana, and Michigan were also reported by at least 18% of SIGMA members. Q1=25th percentile Q3=75th percentile

MEAN Q1 MEDIAN Q3 Total states/provinces 7.3 1 3.0 7

EMPLOYEES SIGMA respondents provided more than 345,000 jobs in fuel and c-‐store operations. Not included in this total are hundreds of thousands of jobs in non-‐fuel-‐related positions with non-‐traditional retailers, such as supermarket chains, warehouse clubs, and fast food franchisors. An additional 92,000 were employed by respondents’ dealers.

MEAN Q1 MEDIAN Q3 Total individuals employed by your company (not converted to full-time equivalents)

1,886 90 1,132 300

Total individuals employed by dealers (outlets to which you deliver but donÕ t own)

886 11 165 660




Increased 67.6%

Decreased 10.3%


524

1,486









1,886 90 1,132 300


886 11 165 660




Increased 67.6%

Decreased 10.3%


524

1,486









1,886 90 1,132 300


886 11 165 660



SIGMA respondents provided more than 345,000 jobs in fuel and c-store operations. Not included in this total are hundreds of thousands of jobs in non-fuel-related positions with non-traditional retailers, such as supermarket chains, warehouse clubs, and fast food franchisors.

An additional 92,000 were employed by respondents’ dealers.


Increased 67.6%

Decreased 10.3%


524

1,486









1,886 90 1,132 300


886 11 165 660




E


209.1

8.8

18.1

65.9

116.3

Total

Other types of outlets (cardlocks,bulk, plant)

Company Owned Dealer Operated(CODO)

Dealer Owned Dealer Operated(DODO)

Company Owned CompanyOperated (COCO)

1.2

0.2

3.6

5.1

0.4

4.6

COCO

CODO

DODO

New locationsExited locations

MOTOR FUEL OUTLETS: TOTAL SUPPLIED BY CATEGORY SIGMA members report a mean of 209.1 total motor fuel outlets, including 116.3 company owned company operated (COCO), 65.9 direct owned dealer operated outlets (DODO), 18.1 company owned dealer operated (CODO), and 8.8 other types of outlets. Total outlets and total DODO continued to increase, while total COCO declined from 2016’s responses, reflecting an ongoing shift in the profile of participating companies to those more engaged in wholesale operations. As with many of our other indicators, the median is frequently 0 because not all firms operate them and the statistics below are based on the total firms that answered the question. A total of 76% indicate operating COCO, 48% CODO, 67% DODO, and 38% some other types of outlets including cardlocks, bulk, or plant. MEAN Q1 MEDIAN Q3

Company Owned Company Operated (COCO) 116.3 1 14 59 Company Owned Dealer Operated (CODO) 18.1 0 0 10 Dealer Owned Dealer Operated (DODO) 65.9 0 12 90 Other types of outlets (cardlocks, bulk, plant) 8.8 0 0 4 Total Outlets 209.1 37 92 203 INDUSTRY LOCATIONS ENTERED OR EXITED, PAST 12 MONTHS Respondents reported a mean of 4.6 DODO, 5.1 COCO, and 0.4 CODO new to industry locations in 2016. 2017 respondents exited a mean of 3.6 DODO, 1.2 COCO, and 0.2 CODO locations. It is important to note, however, overall – as illustrated in the table below -‐-‐ the actual proportion who entered or exited is a minority of responding members, and many did not answer the question as it did not apply to them.

PROPORTION CHANGING NEW EXITED COCO 45% 20% CODO 12% 11% DODO 34% 25%

MOTOR FUEL OUTLETS TOTAL SUPPLIED BY CATEGORY

SIGMA members report a mean of 209.1 total motor fuel outlets, including 116.3 company owned company operated (COCO), 65.9 direct owned dealer operated outlets (DODO), 18.1 company owned dealer operated (CODO), and 8.8 other types of outlets.

Total outlets and total DODO continued to increase, while total COCO declined from 2016’s responses, reflecting an ongoing shift in the profile of participating companies to those more engaged in wholesale operations.

As with many of our other indicators, the median is frequently 0 because not all firms operate them and the statistics below are based on the total firms that answered the question. A total of 76% indicate operating COCO, 48% CODO, 67% DODO, and 38% some other types of outlets including cardlocks, bulk, or plant.

INDUSTRY LOCATIONS ENTERED OR EXITED, PAST 12 MONTHS


209.1

8.8

18.1

65.9

116.3

Total





1.2

0.2

3.6

5.1

0.4

4.6

COCO

CODO

DODO






209.1

8.8

18.1

65.9

116.3

Total





1.2

0.2

3.6

5.1

0.4

4.6

COCO

CODO

DODO





Respondents reported a mean of 4.6 DODO, 5.1 COCO, and 0.4 CODO new to industry locations in 2016.

2017 respondents exited a mean of 3.6 DODO, 1.2 COCO, and 0.2 CODO locations.

It is important to note, however, overall – as illustrated in the table below – the actual proportion who entered or exited is a minority of responding members, and many did not answer the question as it did not apply to them.


F


Respondents reported that a mean of 33% of their outlets sell private brand(s) while 67% of their outlets sell a major brand. The proportion of total fuel sales is reversed in favor of private brands, which comprise 59% of respondents’ total volume compared to 41% for major brands, however.

SIGMA respondents service a mean of 59% of their fleet and other end-user accounts as bulk end-user accounts and 34% through cards/cardlocks. Only 6% are serviced through mobile refueling.

Most SIGMA respondents (86%) operate at least one c-store, while 51% operate at least one motor fuel only service station, 48% operate at least one truck stop, 42% operate at least one cardlock, and 35% operate some other (non-c-store) non-fuel stores.

BRANDS

PERCENTAGE OF FLEET AND OTHER END-USER ACCOUNTS SERVICED

PROPORTION OF OPERATING MOTOR FUEL OUTLETSBY CATEGORY

40.9%

59.1%

67.3%

32.7%

Major brand

Private brandOutletsMotor Fuel Sales

SIGMA STATISTICAL REPORT 2017 1

Fleets served through cards/

cardlocks 34.3%

Fleets serviced through mobile

refueling 6.2%

Bulk end user-

accounts 59.4%

34.8%

42.0%

47.8%

50.7%

85.5%

Other non-fuel store

Cardlock

Truck Stops

Service station/motorfuel only

C-store

BRANDS Respondents reported that a mean of 33% of their outlets sell private brand(s) while 67% of their outlets sell a major brand. The proportion of total fuel sales is reversed in favor of private brands, which comprise 59% of respondents’ total volume compared to 41% for major brands, however.

MEAN Q1 MEDIAN Q3 Under how many brands do you market motor fuel?

2.5 1 2 3

PERCENTAGE OF FLEET AND OTHER

END USER ACCOUNTS SERVICED SIGMA respondents service a mean of 59% of their fleet and other end-‐user accounts as bulk end-‐user accounts and 34% through cards/cardlocks. Only 6% are serviced through mobile refueling.

PROPORTION OPERATING MOTOR FUEL OUTLETS BY CATEGORY

Most SIGMA respondents (86%) operate at least one C-‐store, while 51% operate at least one motor fuel only service station, 48% operate at least one truck stop, 42% operate at least one cardlock, and 35% operate some other (non-‐C-‐store) non-‐fuel stores.

40.9%

59.1%

67.3%

32.7%

Major brand




cardlocks 34.3%


refueling 6.2%

Bulk end user-

accounts 59.4%

34.8%

42.0%

47.8%

50.7%

85.5%


Cardlock

Truck Stops


C-store



2.5 1 2 3





40.9%

59.1%

67.3%

32.7%

Major brand




cardlocks 34.3%


refueling 6.2%

Bulk end user-

accounts 59.4%

34.8%

42.0%

47.8%

50.7%

85.5%


Cardlock

Truck Stops


C-store



2.5 1 2 3





40.9%

59.1%

67.3%

32.7%

Major brand



G


4.6

4.7

6.3

7.4

151.8

Cardlock



Truck Stops

C-store

2.0

12.9

13.3

4.4

2.1

Branded fast food, operated bysomeone else

Branded fast food, companyoperated

Carwashes

Other retail outlets

C-Stores (no motor fuel)

MOTOR FUEL OUTLETS: MEAN TOTAL SUPPLIED BY CATEGORY

The median SIGMA 2016 respondent reported operating 52 c-‐stores. While more SIGMA members operate c-‐stores, other types of outlets including fuel-‐only stations, cardlock, and truck stops also exist.

MEAN Q1 MEDIAN Q3 C-store 151.8 5 52 120 Truck Stops 7.4 0 0 1 Service station/motor fuel only 6.3 0 0 1 Other non-fuel store 4.7 0 0 0 Cardlock 4.6 0 0 1

COCO NON-‐FUEL SALES OUTLETS OPERATED SIGMA respondents indicate operating a mean of 2.1 c-‐stores without motor fuel, 13.3 carwashes, and 4.4 other retail outlets. Branded fast food company outlets are operated by the company in a mean of 12.9 outlets and operated by somebody else in a mean of 2.0 outlets. As previously noted, fluctuations in the number of respondents operating carwashes, c-‐stores, and branded fast food outlets reflect changes in the profile of 2017 respondents compared to previous years. BLENDING PUMPS

SIGMA members operate blending pumps at a mean of 127 and a median of 40 outlets.

RINS

MEAN Q1 MEDIAN Q3 Blending pumps: number of outlets

126.9 4 40 90

Millions MEAN Q1 MEDIAN Q3 Ethanol RINs 16.2 0.3 1.8 5.3

The median SIGMA 2017 respondent reported operating 52 c-stores. While more SIGMA members operate c-stores, other types of outlets including fuel-only stations, cardlock, and truck stops also exist.

SIGMA respondents indicate operating a mean of 2.1 c-stores without motor fuel, 13.3 carwashes, and 4.4 other retail outlets.

Branded fast food company outlets are operated by the company in a mean of 12.9 outlets and operated by somebody else in a mean of 2.0 outlets.

As previously noted, fluctuations in the number of respondents operating carwashes, c-stores, and branded fast food outlets reflect changes in the profile of 2017 respondents compared to previous years.



COCO NON-FUEL OUTLETS OPERATED

BLENDING PUMPS

RINS


4.6

4.7

6.3

7.4

151.8

Cardlock



Truck Stops

C-store

2.0

12.9

13.3

4.4

2.1



Carwashes








RINS


126.9 4 40 90



4.6

4.7

6.3

7.4

151.8

Cardlock



Truck Stops

C-store

2.0

12.9

13.3

4.4

2.1



Carwashes








RINS


126.9 4 40 90

Millions MEAN Q1 MEDIAN Q3 Ethanol RINs 16.2 0.3 1.8 5.3 SIGMA STATISTICAL REPORT 2017

2

4.6

4.7

6.3

7.4

151.8

Cardlock



Truck Stops

C-store

2.0

12.9

13.3

4.4

2.1



Carwashes








RINS


126.9 4 40 90



44% of SIGMA respondents took title to RINS in 2016 and 45% sold RINS. Those members report a median of 1.82 million ethanol and 16.2 million biodiesel RINs.

Millions MEAN Q1 MEDIAN Q3 Ethanol RINs 16.2 0.3 1.8 5.3 Bidiesel RINs 0.9 0.0 0.2 0.6

44% of SIGMA respondents took title to RINS in 2016 and 45% sold RINS. Those members report a median of 1.82 million ethanol and 16.2 million biodiesel RINs.


H


AVERAGE ANNUAL SALES OF MOTOR FUEL

SUPPLIERS: ESTIMATED PORTION OF TOTAL PRODUCT PURCHASES

This year’s respondents indicated an increase from 2016 in sales of blended gasoline, conventional diesel, and biodiesel, while sales of conventional gasoline declined from last year. The increase in total mean and median gallons is the result of several larger SIGMA member companies participating in this year’s survey but not last year.


Refined in the U.S. 94.0%

Directly imported by or for you

0.2%

Imported as refined

product, but by someone

else 5.8%

Directly

0.4

1.9

33.5

58.0

103.0

342.4

All blends above E10 & below E85

E85

Biodiesel (B5, B11, B20-99, B100)

Gasoline, conventional

Conventional diesel

Gasoline, blended

Millions of Gallons


SIGMA respondents report that a mean of 94% of their total product purchases were refined in the United States, while 6% were imported as refined product, and .2% were directly imported by or for them.

Save room for additional para like last year here – will send new #s…

AVERAGE ANNUAL SALES OF MOTOR FUEL Estimated 2016 fuel sales Were 103 billion gallons, a figure figure based on projections from members who responded.

Millions of Gallons

MEAN Q1 MEDIAN Q3 % REPORTING

Conventional diesel 103,049,909 411,094 11,168,106 54,706,320 83% Biodiesel (B5, B11, B20-99, B100) 33,490,529 0 1,102,061 8,766,000 65% Gasoline, conventional 58,007,959 0 228,857 7,803,726 58% Gasoline, blended 342,351,961 22,375,000 61,500,000 157,500,000 87% E85 1,897,544 0 0 126,643 48% All blends above E10 &below E85 411,169 0 0 0 13% Total gallons (all types) 539,209,071 43,524,394 129,671,679 218,202,500

MEAN Q1 MEDIAN Q3

From how many different suppliers did you purchase fuel

21.6 6 13 26



Refined in the U.S. 94.0%

Directly imported by or for you

0.2%

Imported as refined

product, but by someone

else 5.8%

0.4

1.9

33.5

58.0

103.0

342.4

All blends above E10 & below E85

E85

Biodiesel (B5, B11, B20-99, B100)

Gasoline, conventional

Conventional diesel

Gasoline, blended

Millions of Gallons



Save room for additional para like last year here – will send new #s…

AVERAGE ANNUAL SALES OF MOTOR FUEL Estimated 2016 fuel sales Were 103 billion gallons, a figure figure based on projections from members who responded.

Millions of Gallons

MEAN Q1 MEDIAN Q3 % REPORTING

Conventional diesel 103,049,909 411,094 11,168,106 54,706,320 83% Biodiesel (B5, B11, B20-99, B100) 33,490,529 0 1,102,061 8,766,000 65% Gasoline, conventional 58,007,959 0 228,857 7,803,726 58% Gasoline, blended 342,351,961 22,375,000 61,500,000 157,500,000 87% E85 1,897,544 0 0 126,643 48% All blends above E10 &below E85 411,169 0 0 0 13% Total gallons (all types) 539,209,071 43,524,394 129,671,679 218,202,500

MEAN Q1 MEDIAN Q3

From how many different suppliers did you purchase fuel

21.6 6 13 26

Estimated 2016 fuel saleswere 103 billion gallons,a figure based on projectionsfrom members whoresponded.

Gallons sold

Respondents further reported that their source of supply was 41% major integrated refinery, 24% large independent refiner, 21% non-refiner (rack), 7% small refiner (under 250,000 b/d capacity), 4% refinery you own or are owned by, and 3% from other sources.


I


National brands 57.1%

Private brands 43.0%

Beer & Other Alcoholic

Beverages 10.5%

Tobacco Products 34.3%

Soft Drinks 12.6%

Prepared Foods (branded

fast food)8.8%

Snack Foods & Candy 7.7%

Other Foods & Groceries 6.9%

Lottery/Lotto 7.0%

Other major categories

7.7%

Miscellaneous 4.6%

0.0

20.4

102.4

144.0

BranchBanking

CheckCashing

Money Orders

ATMs

LUBRICANTS 26% of SIGMA respondents sell lubricants, with a mean of 2.16 million gallons and a median of 900 thousand gallons reported. SIGMA respondents indicate that an average of 57% of their total lubricant sales are national brands and 43% are private brands. Based on responses received, we estimate SIGMA members had total lubricant sales of 185 million gallons.

PERCENTAGE OF TOTAL NON-‐FUEL SALES SIGMA respondents report that tobacco products (34%) account for the largest average share of their non-‐fuel sales, followed by soft drinks (13%), and beer and other alcoholic beverages (10.5%). Other categories with a larger share of total sales include prepared foods including branded fast food (9%), prepared foods (9%), snack foods & candy (8%), lottery/lotto (7%). Other major categories, other foods and groceries, and miscellaneous account for 21% of total non-‐fuel sales. AVERAGE FUEL OUTLETS WITH FINANCIAL SERVICES OFFERED SIGMA respondents operated a mean of 144 ATMs, while a mean of 102 outlets provide money orders and 20 outlets offer check cashing services.





Beverages 10.5%


Soft Drinks 12.6%


fast food)8.8%



Lottery/Lotto 7.0%


7.7%

Miscellaneous 4.6%

0.0

20.4

102.4

144.0

BranchBanking

CheckCashing

Money Orders

ATMs



26% of SIGMA respondents sell lubricants, with a mean of 2.16 million gallons and a median of 900 thousand gallons reported.

SIGMA respondents indicate that an average of 57% of their total lubricant sales are national brands and 43% are private brands.

Based on responses received, we estimate SIGMA members had total lubricant sales of 185 million gallons.

SIGMA respondents report that tobacco products (34%) account for the largest average share of their non-fuel sales, followed by soft drinks (13%), and beer and other alcoholic beverages (10.5%).

Other categories with a larger share of total sales include prepared foods including branded fast food (9%), prepared foods (9%), snack foods & candy (8%), lottery/lotto (7%). Other major categories, other foods and groceries, and miscellaneous account for 21% of total non-fuel sales.

SIGMA respondents operated a mean of 144 ATMs, while a mean of 102 outlets provide money orders and 20 outlets offer check cashing services.

LUBRICANTS

PERCENTAGE OF TOTAL NON-FUEL SALES

AVERAGE FUEL OUTLETS WITH FINANCIAL SERVICES OFFERED





Beverages 10.5%


Soft Drinks 12.6%


fast food)8.8%



Lottery/Lotto 7.0%


7.7%

Miscellaneous 4.6%

0.0

20.4

102.4

144.0

BranchBanking

CheckCashing

Money Orders

ATMs




J


Average capital investment in remodeling/refitting existing and newly acquired stations and building and equipping new stations in 2016 both declined compared to 2015, by 25% and 20%, respectively. Expected borrowing in 2017 for capital improvements and expansion also declined by a similar proportion.

TOTAL ENVIRONMENTAL COSTS

AVERAGE EXPANSION & CAPITAL IMPROVEMENTS


$7,269,111

$5,590,028

$7,374,453

Total new dollars you expect to borrow in2017 for capital improvements and

expansion

Total amount spent on building andequipping new stations

Total amount spent by your company onremodeling and refitting existing and

newly-acquired stations

$201,432

$228,490

$558,377

$926,322

Estimated internal costs of complying withenvironmental regulations

Net cost of environmental insurance and state tanktrust fund

CompanyÕ s total capital expenditure for environmentally-related equipment

Total spent: tank testing, soil analysis, remediation,other non-capital environmental compliance

AVERAGE EXPANSION & CAPITAL IMPROVEMENTS Average capital investment in remodeling/refitting existing and newly acquired stations and building and equipping new stations in 2016 both declined compared to 2015, by 25% and 20%, respectively. Expected borrowing in 2017 for capital improvements and expansion also declined by a similar proportion. Mean Q1 Median Q3 Total amount spent by your company on remodeling and refitting existing and newly-acquired stations: $7,374,453 $340,800 $1,000,000 $4,787,000 Total amount spent on building and equipping new stations: $5,590,028 $0 $45,002 $2,500,000 Total new dollars you expect to borrow in 2017 for capital improvements and expansion: $7,269,111 $0 $550,000 $4,000,000 TOTAL ENVIRONMENTAL COSTS SIGMA members incur a number of compliance costs related to environmental regulations. Respondents estimated that internal costs of complying with environmental regulations rose slightly since 2015, while the total spent for tank testing, soil analysis, remediation, and other non-‐capital environmental compliance and total capital expenditure or environmentally-‐related equipment decreased in 2016. . Mean Q1 Median Q3 CompanyÕ s total capital expenditure for environmentally-related equipment:

$214,000 $0 $23,000 $250,000

Total spent on tank testing, soil analysis, remediation, and other non-capital environmental compliance:

$1,110,000 $2,000 $50,000 $200,000

Net cost of environmental insurance and state tank trust fund:

$179,000 $5,000 $45,000 $160,000

Estimated internal costs of complying with environmental regulations:

$2,000,000 $5,000 $50,000 $120,000


$7,269,111

$5,590,028

$7,374,453


expansion




$201,432

$228,490

$558,377

$926,322






$214,000 $0 $23,000 $250,000


$1,110,000 $2,000 $50,000 $200,000


$179,000 $5,000 $45,000 $160,000


$2,000,000 $5,000 $50,000 $120,000


$7,269,111

$5,590,028

$7,374,453


expansion




$201,432

$228,490

$558,377

$926,322






$214,000 $0 $23,000 $250,000


$1,110,000 $2,000 $50,000 $200,000


$179,000 $5,000 $45,000 $160,000


$2,000,000 $5,000 $50,000 $120,000


$7,269,111

$5,590,028

$7,374,453


expansion




$201,432

$228,490

$558,377

$926,322






$214,000 $0 $23,000 $250,000


$1,110,000 $2,000 $50,000 $200,000


$179,000 $5,000 $45,000 $160,000


$2,000,000 $5,000 $50,000 $120,000

SIGMA members incur a number of compliance costs related to environmental regulations.

Respondents estimated that internal costs of complying with environmental regulations rose slightly since 2015, while the total spent for tank testing, soil analysis, remediation, and other non-capital environmental compliance and total capital expenditure or environmentally-related equipment decreased in 2016.


K

SIGMA respondents reported paying a mean of $18.7 million and a median of $1.8 million in federal taxes in 2016, and a mean of $5.0 million and a median of $500,000 in state/provincial taxes.

Average total payroll taxes paid were a mean of $4.6 million and a median of $611,000

TOTAL TAXES PAID

Of those SIGMA members who participated in this year’s survey, most (88%) reported having a strategic plan in place. Most reported having family members involved directly in their business, and also reported having a succession plan in place.

Acquisition activities continue to increase, as 37% of respondents stated they plan to acquire another fuel marketer in the next 12 months, compared to 22% who have acquired one in the past 12 months.


22%

37%

78%

82%

88%

Have acquired another fuel marketerin the past 12 months

Plan to acquire another fuel marketerin the next 12 months

Have family members involveddirectly in your business

Have a succession plan

Have a strategic plan

$4,643,911

$4,973,880

$18,650,882

Total payroll taxes paid

Total taxes paid to allstates/provinces

CompanyÕ s total federal taxes paidTOTAL TAXES PAID

SIGMA respondents reported paying a mean of $18.7 million and a median of $1.8 million in federal taxes in 2016, and a mean of $5.0 million and a median of $500,000 in state/provincial taxes. Average total payroll taxes paid were a mean of $4.6 million and a median of $611,000. Mean Q1 Median Q3 Total federal taxes paid $18,650,882 $550,000 $1,800,000 $4,858,020 Total taxes paid to all states/provinces $4,973,880 $28,402 $500,000 $5,544,639 Total payroll taxes paid $4,643,911 $150,970 $611,000 $2,364,430 Plans and Acquisitions (note typos in last year's report) Of those SIGMA members who participated in this year’s survey, most (88%) reported having a strategic plan in place. Most reported having family members involved directly in their business, and also reported having a succession plan in place. Acquisition activities continue to increase, as 37% of respondents stated they plan to acquire another fuel marketer in the next 12 months, compared to 22% who have acquired one in the past 12 months.


22%

37%

78%

82%

88%






$4,643,911

$4,973,880

$18,650,882






22%

37%

78%

82%

88%






$4,643,911

$4,973,880

$18,650,882





PLANS AND ACQUISITIONS


L


SIGMA is the leading national trade association representing independent chain retailers and marketers of motor fuel, both branded and unbranded.

Founded in 1958 as the Society of Independent Gasoline Marketers of America (SIGMA), SIGMA has become a fixture in the motor fuel marketing industry. After nearly sixty years of leadership, SIGMA is the national trade association representing the most successful, progressive, and innovative independent fuel marketers and chain retailers in the United States and Canada. From the outset, the association has served to further the interests of this independent segment of the industry while providing information and services to members.

SIGMA’s benefits to member companies include a wide variety of publications and timely mailings, as well as legal advice. The association holds meetings throughout the year to allow marketers and fuel suppliers to meet one-on-one and to give members a chance to participate in informative educational sessions. Leadership of the organization is provided by volunteers from SIGMA’s member companies, giving the association the advantage of advice from some of the most well-respected entrepreneurs in the nation.

SIGMA’s policies and operating procedures are determined by its members through the Board of Directors and volunteer committees. Regular membership in SIGMA is available to companies involved in motor fuel retailing or wholesaling that are not owned by a refiner. Associate membership is open to other companies directly related to the manufacture or sale of motor fuels.

In addition, Associate Membership is available to companies that offer financial services, fuel transport services, and fleet card services. SIGMA member companies have long been recognized, both within and outside the industry, as the most aggressive, innovative, and price-competitive segment of petroleum marketers.

From its headquarters in suburban Washington, D.C., the association engages in the legislative process in Congress and the regulatory process in the executive branch, including independent agencies of the federal government.

Throughout the year, SIGMA plays an important role in informing, explaining, and interpreting laws and rules to its members. The association also offers comments and input on regulations that affect independent marketers. This serves the dual purpose of ensuring that lawmakers and regulators have valid data on which to base their decisions, while guaranteeing that the perspectives and opinions of independent marketers are heard.

CONCLUSION


D



CONCLUSION SIGMA is the leading national trade association representing independent chain retailers and marketers of motor fuel, both branded and unbranded. Founded in 1958 as the Society of Independent Gasoline Marketers of America (SIGMA), SIGMA has become a fixture in the motor fuel marketing industry. After over fifty years of leadership, SIGMA is the national trade association representing the most successful, progressive, and innovative independent fuel marketers and chain retailers in the United States and Canada. From the outset, the association has served to further the interests of this independent segment of the industry while providing information and services to members. SIGMA’s benefits to member companies include a wide variety of publications and timely mailings, as well as legal advice. The association holds meetings throughout the year to allow marketers and fuel suppliers to

meet one-‐on-‐one and to give members a chance to participate in informative educational sessions. Leadership of the organization is provided by volunteers from SIGMA’s member companies, giving the association the advantage of advice from some of the most well-‐respected entrepreneurs in the nation. SIGMA’s policies and operating procedures are determined by its members through the Board of Directors and volunteer committees. Regular membership in SIGMA is available to companies involved in motor fuel retailing or wholesaling that are not owned by a refiner. Associate membership is open to other companies directly related to the manufacture or sale of motor fuels. In addition, Associate Membership is available to companies that offer financial services, fuel transport services, and fleet card services. SIGMA member companies have long been recognized, both within and

outside the industry, as the most aggressive, innovative, and price-‐competitive segment of petroleum marketers. From its headquarters in suburban Washington, D.C., the association engages in the legislative process in Congress and the regulatory process in the executive branch, including independent agencies of the federal government. Throughout the year, SIGMA plays an important role in informing, explaining, and interpreting laws and rules to its members. The association also offers comments and input on regulations that affect independent marketers. This serves the dual purpose of ensuring that lawmakers and regulators have valid data on which to base their decisions, while guaranteeing that the perspectives and opinions of independent marketers are heard.

3930 Pender Drive, Suite 340 Fairfax, VA 22030 Phone: 703-709-7000 Fax: 703-709-7007 www.sigma.org

B

SIGMA STATISTICAL REPORT 2015

EXECUTIVE COMMITTEE

PresidentThomas G. GreshamDouble Quick, Inc.Indianola, MS

First Vice PresidentDavid BakerWarrenton Oil CompanyWarrenton, MO

Second Vice PresidentWilliam Bradford PuryearMansfield Energy Corp.Gainesville, GA

Secretary TreasurerDavid CollinsWilson Fuel Co. LtdHalifax, NS, Canada

Immediate Past PresidentThomas A. SchmidtU.S. Venture, Inc.Appleton, WI

BOARD OF DIRECTORSBob ColemanColeman Oil CompanyLewiston, ID

Erin GraziosiRobinson Oil CorporationSanta Clara, CA

Richard GuttmanGuttman Energy Inc.Belle Vernon, PA


David HutchinsonHutchinson Oil Co.Elk City, OK

Jeff LeBeouf2825 Railroad AveCeres, CA



Kerry OliverCarterEnergy, a division of World Fuel Services, Inc.Overland Park, KS

Jack C. PesterPester Marketing CompanyHouston, TX


Joseph ZietlowKwik Trip, Inc.La Crosse, WI

CounselR. Timothy ColumbusSteptoe & Johnson, LLPWashington, DC

Staff LiaisonRyan McNuttSIGMAFairfax, VA 22030

SIGMA PRESIDENTS

Phil L. Siteman1958 1960, Missouri

A.M. Blakely1960 1961, Arizona

Calvin Houghland1961 1962, Tennessee

R.J. Peterson1962 1963, Missouri

George H. Panuska1963 1965, Ohio

Mary Hudson1965 1967, Kansas

James Thornton1967 1968, Indiana

Randy Deer1968 1969, Ohio

R.J. Peterson1969 1972, Illinois

Frederick Lichtman1972 1974, Michigan

Newell Baker1974 1976, Missouri

Herbert A. Sostek1976 1978, Massachusetts

Thomas N. Allen1978 1980, Virginia

Richard L. Singletary1980 1981, Georgia

Roy R. Mason1981 1983, Alabama

Michael S. Kirschner1983 1985, Pennsylvania

John A. Wickland III1985 1987, California

Carl Bolch, Jr.1987 1989, Georgia

F.C. Tally Roberts, Jr.1989-1991, North Carolina

R. H. Tod Butler, Jr.1991-1993, Michigan

Douglas L. True1993-1995, Washington

Leo Liebowitz1995-1997, New York

Bob Phillips, Jr.1997-1999, Oklahoma

Thomas L. Robinson1999-2001, California

Michael Ports2001-2004, Ohio

William S. Shipley, III2004-2006, Pennsylvania

Paul Reid2006-2008, New York

Carl Boyett2008-2010, California

Frank Greinke2010-2012, California

Thomas Schmidt2012-2014, Wisconsin

Thomas Gresham2014-Present, Mississippi

SIGMA STAFF AND COUNSEL


Director of EducationDennis [email protected]

Director of Marketing Services and Database ManagerBrian [email protected]

Director of Meetings and Manager of AdministrationMary Alice [email protected]

Staff Support ManagerMaria [email protected]


Director of Communications and Political EngagementAmy [email protected]


Assitant Director of MarketingGinny [email protected]

SIGMA EXECUTIVE OFFICES3930 Pender Drive, Suite 340Fairfax, VA 22030PHONE: (703) 709-7000FAX: (703) 709-7007E-MAIL: [email protected]: www.sigma.org

COUNSELR. Timothy [email protected](202)429-6222

Steptoe & Johnson1330 Connecticut Ave. NWWashington, D.C. 20036-1795PHONE: (202) 429 3000FAX: (202) 429-3902

2015 STATISTICAL REPORT


Documents

2017 - SIGMA · to meeting demand, is reflected in this 2017 Annual Statistical Report. NUMBER OF EMPLOYEES (GASOLINE OR C-STORE ONLY) NUMBER OF GALLONS SOLD (BILLIONS) NUMBER OF