DALLAS, May 8, 2017 /PRNewswire/ -- Alon USA Energy, Inc. (NYSE: ALJ) ("Alon") today
announced results for the first quarter of 2017. Net income
available to stockholders for the first quarter of 2017 was
$7.3 million, or $0.10 per share, compared to net loss available
to stockholders of $(35.5) million,
or $(0.51) per share, for the same
period last year. Excluding special items, Alon recorded net income
available to stockholders of $8.8
million, or $0.12 per share,
for the first quarter of 2017, compared to net loss available to
stockholders of $(29.2) million, or
$(0.42) per share, for the same
period last year.
Alan Moret, CEO, commented, "We
are very pleased with our strong operational performance in the
first quarter of 2017, with both of our refineries setting
quarterly total throughput records. Our operations were
complemented by an improvement in our benchmark Gulf Coast crack
spreads relative to the fourth quarter of 2016 and the same quarter
last year. Our first quarter results also benefited from the
reduction to RINs expense that was booked during the quarter. We
have been encouraged by the positive trends we have seen in
refining into the second quarter of 2017, including improved
discounts for Midland-priced crudes and improved crack spreads.
"The Big Spring refinery
achieved record quarterly total throughput of almost 78,000 barrels
per day in the first quarter of 2017. The refinery operating margin
of $10.32 per barrel benefited from a
strong wholesale marketing environment. Direct operating expense
was only $3.54 per barrel as a result
of efficient operations. We expect total throughput at the
Big Spring refinery to average
73,000 barrels per day for the second quarter of 2017 and 75,000
barrels per day for the full year of 2017.
"The Krotz Springs refinery ran
very well in the first quarter of 2017, with total throughput
exceeding 77,000 barrels per day setting a new record under our
ownership. The refinery operating margin of $5.31 per barrel does not include the
$27.7 million benefit from the
renewable fuel standard exemption. As was previously announced, in
February 2017 the EPA approved a
small refinery exemption for the Krotz
Springs refinery from the requirements of the renewable fuel
standard for the 2016 calendar year. On an after-tax basis, the
impact of the exemption was $19.2
million or $0.27 per share.
The Krotz Springs refinery's
direct operating expense of $3.21 per
barrel was very low and reflects continued efforts to control costs
at the refinery. We expect total throughput at the Krotz Springs refinery to average 75,000
barrels per day for the second quarter of 2017 and 74,000 barrels
per day for the full year of 2017.
"Turning to our retail segment, our fuel sales volumes increased
by 6.2 percent in the first quarter of 2017 relative to the same
quarter last year, despite a lower store count in the first quarter
of 2017. Same-store fuel sales volumes were up 6.7 percent in the
first quarter of 2017 compared to the first quarter of 2016. We
continue to expect this business to improve as activity in the
Permian Basin accelerates and as summer driving season begins."
Shai Even, Senior Vice President
and CFO, commented, "The profitability of our California renewable fuels facility in the
first quarter of 2017 was negatively impacted by the expiration of
the federal blender's tax credit on December
31, 2016. As a result, the facility generated a small
operating loss in the first quarter of 2017. However, if the
blender's tax credit is reinstated and becomes effective
retroactively to the beginning of 2017, we will record additional
pre-tax income of $8.8 million before
the effect of non-controlling interest. Total throughput for the first
quarter of 2017 averaged approximately 2,700 barrels per day."
FIRST QUARTER 2017
Special items reduced net income by $1.4
million for the first quarter of 2017 primarily as a result
of employee retention expenses of $2.0
million and expenses related to the Delek merger of
$2.0 million, partially offset by
gains of $1.7 million related to an
asphalt inventory adjustment and $0.5
million associated with gains recognized on disposition of
assets, before income tax and non-controlling interest impacts of
$0.4 million. Special items increased
net loss by $6.3 million for the
first quarter of 2016 primarily as a result of employee retention
expenses of $4.7 million, unrealized
losses of $3.3 million associated
with commodity swaps and $2.1 million
associated with losses recognized on disposition of assets, before
income tax and non-controlling interest impacts of $3.8 million.
The combined total refinery average throughput for the first
quarter of 2017 was 155,081 barrels per day ("bpd"), consisting of
77,754 bpd at the Big Spring
refinery and 77,327 bpd at the Krotz
Springs refinery, compared to a combined total refinery
average throughput of 138,998 bpd for the first quarter of 2016,
consisting of 67,536 bpd at the Big
Spring refinery and 71,462 bpd at the Krotz Springs refinery. During the first
quarter of 2017, both of the Big
Spring and Krotz Springs
refineries reported the highest total quarterly average throughput
since their respective acquisitions. The reduced throughput at our
Big Spring refinery during the
first quarter of 2016 was the result of planned downtime to
complete a reformer regeneration and catalyst replacement for our
diesel hydrotreater unit. The reduced throughput at the
Krotz Springs refinery during the
first quarter of 2016 was the result of our election to reduce the
crude rate in order to optimize the refinery yield.
Refinery operating margin at the Big
Spring refinery was $10.32 per
barrel for the first quarter of 2017 compared to $7.77 per barrel for the same period in 2016.
This increase in operating margin was primarily due to a higher
Gulf Coast 3/2/1 crack spread and a widening of the WTI Cushing to
WTS spread, partially offset by the increased premium in WTI
Midland compared to WTI Cushing, increased RINs costs and a reduced
benefit from the contango market environment which increased the
cost of crude.
Refinery operating margin at the Krotz
Springs refinery was $5.31 per
barrel for the first quarter of 2017 compared to $1.59 per barrel for the same period in 2016.
This increase in operating margin was primarily due to a higher
Gulf Coast 2/1/1 high sulfur diesel crack spread and reduced RINs
costs, partially offset by the increased premium in WTI Midland
compared to WTI Cushing and a reduced benefit from the contango
market environment which increased the cost of crude.
In February 2017, the EPA approved
a small refinery exemption for the Krotz
Springs refinery from the requirements of the renewable fuel
standard for the 2016 calendar year, resulting in a reduction to
RINs expense of $27.7 million in the
first quarter of 2017.
The average Gulf Coast 3/2/1 crack spread was $13.75 per barrel for the first quarter of 2017
compared to $11.24 per barrel for the
same period in 2016. The average Gulf Coast 2/1/1 high sulfur
diesel crack spread was $9.74 per
barrel for the first quarter of 2017 compared to $6.74 per barrel for the same period in 2016.
The average WTI Cushing to WTI Midland spread for the first
quarter of 2017 was $(0.64) per
barrel compared to $(0.13) per barrel
for the same period in 2016. The average WTI Cushing to WTS spread
for the first quarter of 2017 was $1.27 per barrel compared to $(0.10) per barrel for the same period in 2016.
The average LLS to WTI Cushing spread for the first quarter of 2017
was $1.58 per barrel compared to
$1.60 per barrel for the same period
in 2016. The average Brent to WTI Cushing spread for the first
quarter of 2017 was $1.66 per barrel
compared to $0.49 per barrel for the
same period in 2016. The average Brent to LLS spread for the first
quarter of 2017 was $(0.13) per
barrel compared to $(0.89) per barrel
for the same period in 2016.
The average RINs cost effect on the Big Spring refinery operating margin was
$0.59 per barrel for the first
quarter of 2017, compared to $0.13
per barrel for the same period in 2016. The average RINs cost
effect on the Krotz Springs
refinery operating margin, excluding the impact of the 2016
exemption, was $1.49 per barrel for
the first quarter of 2017, compared to $1.60 per barrel for the same period in 2016.
The contango environment in the first quarter of 2017 created an
average cost of crude benefit of $1.00 per barrel compared to an average cost of
crude benefit of $1.83 per barrel for
the same period in 2016.
Our California renewable fuels
facility generated operating income (loss) of $(2.4) million for the first quarter of 2017,
compared to $7.2 million for the
first quarter of 2016. The decrease was primarily due to the
expiration of the blender's tax credit on December 31, 2016.
Asphalt margins for the first quarter of 2017 were $78.45 per ton compared to $84.16 per ton for the same period in 2016. On a
cash basis (i.e., excluding inventory effects), asphalt margins in
the first quarter of 2017 were $74.39
per ton compared to $91.12 per ton in
the first quarter of 2016.
Retail fuel margins decreased to 19.5
cents per gallon in the first quarter of 2017 from
19.9 cents per gallon in the first
quarter of 2016. Retail fuel sales volume increased to 53.1 million
gallons in the first quarter of 2017 from 50.0 million gallons in
the first quarter of 2016.
Alon also announced today that its Board of Directors has
declared the regular quarterly cash dividend of $0.15 per share. The dividend is payable on
June 8, 2017 to stockholders of record at the close of
business on May 22, 2017.
CONFERENCE CALL
Alon has scheduled a conference call, which will be broadcast
live over the Internet on Tuesday, May 9,
2017, at 12:30 p.m. Eastern Time (11:30 a.m. Central Time), to discuss the first
quarter 2017 financial results. To access the call, please dial
877-407-0672, or 412-902-0003 for international callers, and ask
for the Alon USA Energy call at
least 10 minutes prior to the start time. Investors may also listen
to the conference live by logging on to the Alon investor relations
website, http://ir.alonusa.com. A telephonic replay of the
conference call will be available through May 16, 2017 and may be accessed by calling
877-660-6853, or 201-612-7415 for international callers, and using
the passcode 13660045#. A webcast archive will also be available at
http://ir.alonusa.com shortly after the call and will be accessible
for approximately 90 days. For more information, please contact
Donna Washburn at Dennard § Lascar
Associates at 713-529-6600 or email
dwashburn@dennardlascar.com.
Alon USA Energy, Inc.,
headquartered in Dallas, Texas, is
an independent refiner and marketer of petroleum products,
operating primarily in the South Central, Southwestern and Western
regions of the United States. Alon
owns 100% of the general partner and 81.6% of the limited partner
interests in Alon USA Partners, LP
(NYSE: ALDW), which owns a crude oil refinery in Big Spring, Texas, with a crude oil throughput
capacity of 73,000 barrels per day and an integrated wholesale
marketing business. In addition, Alon directly owns a crude oil
refinery in Krotz Springs,
Louisiana, with a crude oil throughput capacity of 74,000
barrels per day. Alon also owns crude oil refineries in
California, which have not
processed crude oil since 2012. Alon owns a majority interest in a
renewable fuels facility in California, with a throughput capacity of
3,000 barrels per day. Alon is a leading marketer of asphalt, which
it distributes primarily through asphalt terminals located
predominately in the Southwestern and Western United States. Alon is the largest
7-Eleven licensee in the United
States and operates approximately 300 convenience stores
which also market motor fuels in Central and West Texas and New
Mexico.
Any statements in this press release that are not statements of
historical fact are forward-looking statements. Forward-looking
statements reflect our current expectations regarding future
events, results or outcomes. These expectations may or may not be
realized. Some of these expectations may be based upon assumptions
or judgments that prove to be incorrect. In addition, our business
and operations involve numerous risks and uncertainties, many of
which are beyond our control, which could result in our
expectations not being realized or otherwise materially affect our
financial condition, results of operations and cash flows.
Additional information regarding these and other risks is contained
in our filings with the Securities and Exchange Commission.
This press release does not constitute an offer to sell or the
solicitation of offers to buy any security and shall not constitute
an offer, solicitation or sale of any security in any jurisdiction
in which such offer, solicitation or sale would be unlawful.
|
Contacts:
|
Stacey Morris,
Investor Relations Manager
Alon USA Energy,
Inc.
972-367-3808
|
|
|
Investors: Jack
Lascar
Dennard § Lascar
Associates, LLC
713-529-6600
|
|
|
Media: Blake
Lewis
Lewis Public Relations
214-635-3020
|
- Tables to follow -
ALON USA
ENERGY, INC. AND SUBSIDIARIES CONSOLIDATED
EARNINGS
RELEASE
|
RESULTS OF
OPERATIONS - FINANCIAL DATA
(ALL INFORMATION
IN THIS PRESS RELEASE EXCEPT FOR BALANCE SHEET DATA AS OF DECEMBER
31, 2016, IS UNAUDITED)
|
For the Three
Months Ended
|
|
March 31,
|
|
2017
|
|
2016
|
|
(dollars in
thousands, except per share
data)
|
|
STATEMENTS OF
OPERATIONS DATA:
|
|
|
|
|
Net sales
(1)
|
$
|
1,150,593
|
|
|
$
|
849,973
|
|
|
Operating costs and
expenses:
|
|
|
|
|
Cost of
sales
|
972,874
|
|
|
735,144
|
|
|
Direct operating
expenses
|
64,242
|
|
|
68,617
|
|
|
Selling, general and
administrative expenses (2)
|
49,225
|
|
|
48,701
|
|
|
Depreciation and
amortization (3)
|
36,547
|
|
|
34,862
|
|
|
Total operating costs
and expenses
|
1,122,888
|
|
|
887,324
|
|
|
Gain (loss) on
disposition of assets
|
476
|
|
|
(2,088)
|
|
|
Operating income
(loss)
|
28,181
|
|
|
(39,439)
|
|
|
Interest
expense
|
(15,117)
|
|
|
(18,307)
|
|
|
Equity earnings
(losses) of investees
|
(133)
|
|
|
378
|
|
|
Other income (loss),
net
|
(89)
|
|
|
72
|
|
|
Income (loss) before
income tax expense (benefit)
|
12,842
|
|
|
(57,296)
|
|
|
Income tax expense
(benefit)
|
2,568
|
|
|
(21,236)
|
|
|
Net income
(loss)
|
10,274
|
|
|
(36,060)
|
|
|
Net income (loss)
attributable to non-controlling interest
|
2,947
|
|
|
(523)
|
|
|
Net income (loss)
available to stockholders
|
$
|
7,327
|
|
|
$
|
(35,537)
|
|
|
Earnings (loss) per
share, basic
|
$
|
0.10
|
|
|
$
|
(0.51)
|
|
|
Weighted average
shares outstanding, basic (in thousands)
|
71,490
|
|
|
70,143
|
|
|
Earnings (loss) per
share, diluted
|
$
|
0.10
|
|
|
$
|
(0.51)
|
|
|
Weighted average
shares outstanding, diluted (in thousands)
|
71,577
|
|
|
70,143
|
|
|
Cash dividends per
share
|
$
|
0.15
|
|
|
$
|
0.15
|
|
|
CASH FLOW
DATA:
|
|
|
|
|
Net cash provided by
(used in):
|
|
|
|
|
Operating
activities
|
$
|
82,483
|
|
|
$
|
(29,351)
|
|
|
Investing
activities
|
(13,239)
|
|
|
(47,017)
|
|
|
Financing
activities
|
(19,417)
|
|
|
35,624
|
|
|
OTHER
DATA:
|
|
|
|
|
Adjusted net income
(loss) available to stockholders (4)
|
$
|
8,773
|
|
|
$
|
(29,233)
|
|
|
Adjusted earnings
(loss) per share (4)
|
$
|
0.12
|
|
|
$
|
(0.42)
|
|
|
Adjusted EBITDA
(5)
|
$
|
64,030
|
|
|
$
|
1,294
|
|
|
Capital expenditures
(6)
|
13,067
|
|
|
23,446
|
|
|
Capital expenditures
for turnarounds and catalysts
|
1,349
|
|
|
16,610
|
|
|
|
|
March 31,
2017
|
|
December 31,
2016
|
|
(dollars in
thousands)
|
|
BALANCE SHEET DATA
(end of period):
|
|
|
|
|
Cash and cash
equivalents
|
$
|
186,129
|
|
|
$
|
136,302
|
|
|
Working capital
(7)
|
2,976
|
|
|
25,789
|
|
|
Total assets
(7)
|
2,112,204
|
|
|
2,095,301
|
|
|
Total debt
|
516,319
|
|
|
527,966
|
|
|
Total debt less cash
and cash equivalents
|
330,190
|
|
|
391,664
|
|
|
Total
equity
|
581,345
|
|
|
582,413
|
|
|
REFINING AND
MARKETING SEGMENT
|
|
For the Three
Months Ended
|
|
March 31,
|
|
2017
|
|
2016
|
|
(dollars in
thousands, except per barrel
data and pricing statistics)
|
|
STATEMENTS OF
OPERATIONS DATA:
|
|
|
|
|
Net sales
(8)
|
$
|
1,006,629
|
|
|
$
|
696,613
|
|
|
Operating costs and
expenses:
|
|
|
|
|
Cost of
sales
|
871,482
|
|
|
626,036
|
|
|
Direct operating
expenses
|
57,654
|
|
|
62,793
|
|
|
Selling, general and
administrative expenses
|
21,617
|
|
|
18,275
|
|
|
Depreciation and
amortization
|
31,353
|
|
|
29,784
|
|
|
Total operating costs
and expenses
|
982,106
|
|
|
736,888
|
|
|
Gain (loss) on
disposition of assets
|
2
|
|
|
(2,088)
|
|
|
Operating income
(loss)
|
$
|
24,525
|
|
|
$
|
(42,363)
|
|
|
KEY OPERATING
STATISTICS:
|
|
|
|
|
Per barrel of
throughput:
|
|
|
|
|
Refinery operating
margin – Big Spring (9)
|
$
|
10.32
|
|
|
$
|
7.77
|
|
|
Refinery operating
margin – Krotz Springs (9)
|
5.31
|
|
|
1.59
|
|
|
California renewable
fuel operating margin (10)
|
14.96
|
|
|
153.64
|
|
|
Refinery direct
operating expense – Big Spring (11)
|
3.54
|
|
|
4.07
|
|
|
Refinery direct
operating expense – Krotz Springs (11)
|
3.21
|
|
|
3.83
|
|
|
California renewable
fuel direct operating expense (11)
|
14.56
|
|
|
56.41
|
|
|
Capital
expenditures
|
$
|
6,554
|
|
|
$
|
18,559
|
|
|
Capital expenditures
for turnarounds and catalysts
|
1,349
|
|
|
16,610
|
|
|
PRICING
STATISTICS:
|
|
|
|
|
Crack spreads (3/2/1)
(per barrel):
|
|
|
|
|
Gulf Coast
(12)
|
$
|
13.75
|
|
|
$
|
11.24
|
|
|
Crack spreads (2/1/1)
(per barrel):
|
|
|
|
|
Gulf Coast high
sulfur diesel (12)
|
$
|
9.74
|
|
|
$
|
6.74
|
|
|
WTI Cushing crude oil
(per barrel)
|
$
|
51.78
|
|
|
$
|
33.30
|
|
|
Crude oil
differentials (per barrel):
|
|
|
|
|
WTI Cushing less WTI
Midland (13)
|
$
|
(0.64)
|
|
|
$
|
(0.13)
|
|
|
WTI Cushing less WTS
(13)
|
1.27
|
|
|
(0.10)
|
|
|
LLS less WTI Cushing
(13)
|
1.58
|
|
|
1.60
|
|
|
Brent less WTI
Cushing (13)
|
1.66
|
|
|
0.49
|
|
|
Brent less LLS
(13)
|
(0.13)
|
|
|
(0.89)
|
|
|
Product prices
(dollars per gallon):
|
|
|
|
|
Gulf Coast unleaded
gasoline
|
$
|
1.56
|
|
|
$
|
1.07
|
|
|
Gulf Coast ultra-low
sulfur diesel
|
1.57
|
|
|
1.03
|
|
|
Gulf Coast high
sulfur diesel
|
1.45
|
|
|
0.91
|
|
|
Natural gas (per
MMBtu)
|
3.07
|
|
|
1.98
|
|
|
THROUGHPUT AND
PRODUCTION DATA:
BIG SPRING
REFINERY
|
For the Three
Months Ended
|
|
March 31,
|
|
2017
|
|
2016
|
|
bpd
|
|
%
|
|
bpd
|
|
%
|
|
Refinery
throughput:
|
|
|
|
|
|
|
|
|
WTS crude
|
30,301
|
|
39.0
|
|
36,554
|
|
54.1
|
|
WTI crude
|
42,877
|
|
55.1
|
|
27,760
|
|
41.1
|
|
Blendstocks
|
4,576
|
|
5.9
|
|
3,222
|
|
4.8
|
|
Total refinery
throughput (14)
|
77,754
|
|
100.0
|
|
67,536
|
|
100.0
|
|
Refinery
production:
|
|
|
|
|
|
|
|
|
Gasoline
|
38,690
|
|
49.9
|
|
34,100
|
|
50.5
|
|
Diesel/jet
|
28,871
|
|
37.2
|
|
22,682
|
|
33.6
|
|
Asphalt
|
2,893
|
|
3.7
|
|
3,148
|
|
4.6
|
|
Petrochemicals
|
4,530
|
|
5.8
|
|
3,617
|
|
5.3
|
|
Other
|
2,633
|
|
3.4
|
|
4,027
|
|
6.0
|
|
Total refinery
production (15)
|
77,617
|
|
100.0
|
|
67,574
|
|
100.0
|
|
Refinery utilization
(16)
|
|
|
100.2%
|
|
|
|
93.2%
|
|
|
|
THROUGHPUT AND
PRODUCTION DATA:
KROTZ SPRINGS
REFINERY
|
For the Three
Months Ended
|
|
March 31,
|
|
2017
|
|
2016
|
|
bpd
|
|
%
|
|
bpd
|
|
%
|
|
Refinery
throughput:
|
|
|
|
|
|
|
|
|
WTI crude
|
22,633
|
|
29.3
|
|
13,797
|
|
19.3
|
|
Gulf Coast sweet
crude
|
49,958
|
|
64.6
|
|
49,350
|
|
69.1
|
|
Blendstocks
|
4,736
|
|
6.1
|
|
8,315
|
|
11.6
|
|
Total refinery
throughput (14)
|
77,327
|
|
100.0
|
|
71,462
|
|
100.0
|
|
Refinery
production:
|
|
|
|
|
|
|
|
|
Gasoline
|
38,255
|
|
48.7
|
|
36,274
|
|
49.7
|
|
Diesel/jet
|
30,772
|
|
39.1
|
|
26,989
|
|
37.0
|
|
Heavy Oils
|
1,244
|
|
1.6
|
|
1,534
|
|
2.1
|
|
Other
|
8,339
|
|
10.6
|
|
8,157
|
|
11.2
|
|
Total refinery
production (15)
|
78,610
|
|
100.0
|
|
72,954
|
|
100.0
|
|
Refinery utilization
(16)
|
|
|
98.1%
|
|
|
|
85.3%
|
|
|
|
THROUGHPUT AND
PRODUCTION DATA:
CALIFORNIA
RENEWABLE FUELS FACILITY
|
For the Three
Months Ended
|
|
March 31,
|
|
2017
|
|
2016
|
|
bpd
|
|
%
|
|
bpd
|
|
%
|
|
Throughput:
|
|
|
|
|
|
|
|
|
Tallow/vegetable
oils
|
2,361
|
|
88.5
|
|
2,606
|
|
100.0
|
|
Other
|
305
|
|
11.5
|
|
—
|
|
—
|
|
Total throughput
(14)
|
2,666
|
|
100.0
|
|
2,606
|
|
100.0
|
|
Production:
|
|
|
|
|
|
|
|
|
Renewable
gasoline
|
300
|
|
11.5
|
|
—
|
|
—
|
|
Renewable
diesel
|
2,107
|
|
80.6
|
|
1,994
|
|
81.0
|
|
Renewable
jet
|
150
|
|
5.7
|
|
260
|
|
10.6
|
|
Naphtha
|
57
|
|
2.2
|
|
208
|
|
8.4
|
|
Total production
(15)
|
2,614
|
|
100.0
|
|
2,462
|
|
100.0
|
|
ASPHALT
SEGMENT
|
|
For the Three
Months Ended
|
|
March 31,
|
|
2017
|
|
2016
|
|
(dollars in
thousands, except per ton
data)
|
|
STATEMENTS OF
OPERATIONS DATA:
|
|
|
|
|
Net sales
(17)
|
$
|
44,821
|
|
|
$
|
53,499
|
|
|
Operating costs and
expenses:
|
|
|
|
|
Cost of sales (17)
(18)
|
36,283
|
|
|
43,865
|
|
|
Direct operating
expenses
|
6,588
|
|
|
5,824
|
|
|
Selling, general and
administrative expenses
|
2,212
|
|
|
3,198
|
|
|
Depreciation and
amortization
|
1,219
|
|
|
1,260
|
|
|
Total operating costs
and expenses
|
46,302
|
|
|
54,147
|
|
|
Operating loss
(21)
|
$
|
(1,481)
|
|
|
$
|
(648)
|
|
|
KEY OPERATING
STATISTICS:
|
|
|
|
|
Blended asphalt sales
volume (tons in thousands) (19)
|
65
|
|
|
85
|
|
|
Non-blended asphalt
sales volume (tons in thousands) (20)
|
22
|
|
|
29
|
|
|
Blended asphalt sales
price per ton (19)
|
$
|
427.98
|
|
|
$
|
413.78
|
|
|
Non-blended asphalt
sales price per ton (20)
|
163.86
|
|
|
145.17
|
|
|
Asphalt margin per
ton (21)
|
78.45
|
|
|
84.16
|
|
|
Capital
expenditures
|
$
|
1,482
|
|
|
$
|
740
|
|
|
|
|
RETAIL
SEGMENT
|
|
For the Three
Months Ended
|
|
March 31,
|
|
2017
|
|
2016
|
|
(dollars in
thousands, except per gallon
data)
|
|
STATEMENTS OF
OPERATIONS DATA:
|
|
|
|
|
Net sales
(1)
|
$
|
190,143
|
|
|
$
|
162,971
|
|
|
Operating costs and
expenses:
|
|
|
|
|
Cost of sales
(18)
|
156,109
|
|
|
128,353
|
|
|
Selling, general and
administrative expenses
|
25,203
|
|
|
27,037
|
|
|
Depreciation and
amortization
|
3,291
|
|
|
3,399
|
|
|
Total operating costs
and expenses
|
184,603
|
|
|
158,789
|
|
|
Gain on disposition
of assets
|
474
|
|
|
—
|
|
|
Operating
income
|
$
|
6,014
|
|
|
$
|
4,182
|
|
|
KEY OPERATING
STATISTICS:
|
|
|
|
|
Number of stores (end
of period) (22)
|
304
|
|
|
309
|
|
|
Retail fuel sales
(thousands of gallons)
|
53,101
|
|
|
50,005
|
|
|
Retail fuel sales
(thousands of gallons per site per month) (22)
|
60
|
|
|
56
|
|
|
Retail fuel margin
(cents per gallon) (23)
|
19.5
|
|
|
19.9
|
|
|
Retail fuel sales
price (dollars per gallon) (24)
|
$
|
2.14
|
|
|
$
|
1.70
|
|
|
Merchandise
sales
|
$
|
76,332
|
|
|
$
|
77,825
|
|
|
Merchandise sales
(per site per month) (22)
|
$
|
84
|
|
|
$
|
84
|
|
|
Merchandise margin
(25)
|
30.9
|
%
|
|
31.5
|
%
|
|
Capital
expenditures
|
$
|
4,945
|
|
|
$
|
2,711
|
|
|
|
|
(1)
|
Includes excise taxes
on sales by the retail segment of $20,725 and $19,525 for the three
months ended March 31, 2017 and 2016, respectively.
|
|
|
|
(2)
|
Includes corporate
headquarters selling, general and administrative expenses of $193
and $191 for the three months ended March 31, 2017 and 2016,
respectively, which are not allocated to our three operating
segments.
|
|
|
|
(3)
|
Includes corporate
depreciation and amortization of $684 and $419 for the three months
ended March 31, 2017 and 2016, respectively, which are not
allocated to our three operating segments.
|
|
|
|
(4)
|
The following table
provides a reconciliation of net income (loss) available to
stockholders under United States generally accepted accounting
principles ("GAAP") to adjusted net income (loss) available to
stockholders utilized in determining adjusted earnings (loss) per
share, excluding after-tax employee retention expense, after-tax
expenses related to Delek merger, after-tax gains on asphalt
inventory adjustment, after-tax unrealized losses on commodity
swaps and after-tax (gain) loss on disposition of assets. Adjusted
net income (loss) available to stockholders is not a recognized
measurement under GAAP; however, the amounts included in adjusted
net income (loss) available to stockholders are derived from
amounts included in our consolidated financial statements. Our
management believes that the presentation of adjusted net income
(loss) available to stockholders and adjusted earnings (loss) per
share, excluding these items, is useful to investors because it
provides a more meaningful measurement for evaluation of our
Company's operating results.
|
|
|
|
For the Three
Months Ended
|
|
|
March 31,
|
|
|
2017
|
|
2016
|
|
|
(dollars in
thousands)
|
|
Net income (loss)
available to stockholders
|
$
|
7,327
|
|
|
$
|
(35,537)
|
|
|
Exclude
adjustments:
|
|
|
|
|
Employee retention
expense
|
2,000
|
|
|
4,700
|
|
|
Expenses related to
Delek merger
|
2,000
|
|
|
—
|
|
|
(Gain) on asphalt
inventory adjustment
|
(1,713)
|
|
|
—
|
|
|
Unrealized losses on
commodity swaps
|
—
|
|
|
3,333
|
|
|
(Gain) loss on
disposition of assets
|
(476)
|
|
|
2,088
|
|
|
Total
adjustments
|
1,811
|
|
|
10,121
|
|
|
Income tax impact
related to adjustments
|
(362)
|
|
|
(3,751)
|
|
|
Non-controlling
interest impact related to adjustments
|
(3)
|
|
|
(66)
|
|
|
Adjusted net income
(loss) available to stockholders
|
$
|
8,773
|
|
|
$
|
(29,233)
|
|
|
Adjusted earnings
(loss) per share
|
$
|
0.12
|
|
|
$
|
(0.42)
|
|
|
|
|
(5)
|
Adjusted EBITDA
represents earnings before net income (loss) attributable to
non-controlling interest, income tax expense (benefit), interest
expense, depreciation and amortization, (gain) loss on disposition
of assets and unrealized losses on commodity swaps. Adjusted EBITDA
is not a recognized measurement under GAAP; however, the amounts
included in Adjusted EBITDA are derived from amounts included in
our consolidated financial statements. Our management believes that
the presentation of Adjusted EBITDA is useful to investors because
it is frequently used by securities analysts, investors, and other
interested parties in the evaluation of companies in our industry.
In addition, our management believes that Adjusted EBITDA is useful
in evaluating our operating performance compared to that of other
companies in our industry because the calculation of Adjusted
EBITDA generally eliminates the effects of net income (loss)
attributable to non-controlling interest, income tax expense
(benefit), interest expense, (gain) loss on disposition of assets,
unrealized losses on commodity swaps and the accounting effects of
capital expenditures and acquisitions, items that may vary for
different companies for reasons unrelated to overall operating
performance.
|
|
|
|
Adjusted EBITDA has
limitations as an analytical tool, and you should not consider it
in isolation, or as a substitute for analysis of our results as
reported under GAAP. Some of these limitations are:
|
|
|
|
|
|
|
|
•
|
Adjusted EBITDA does
not reflect our cash expenditures or future requirements for
capital expenditures or contractual commitments;
|
|
|
|
•
|
Adjusted EBITDA does
not reflect the interest expense or the cash requirements necessary
to service interest or principal payments on our debt;
|
|
|
|
•
|
Adjusted EBITDA does
not reflect the prior claim that non-controlling interest have on
the income generated by non-wholly-owned subsidiaries;
|
|
|
|
•
|
Adjusted EBITDA does
not reflect changes in or cash requirements for our working capital
needs; and
|
|
|
|
•
|
Our calculation of
Adjusted EBITDA may differ from EBITDA calculations of other
companies in our industry, limiting its usefulness as a comparative
measure.
|
|
|
|
Because of these
limitations, Adjusted EBITDA should not be considered a measure of
discretionary cash available to us to invest in the growth of our
business. We compensate for these limitations by relying primarily
on our GAAP results and using Adjusted EBITDA only
supplementally.
|
|
|
|
The following table
reconciles net income (loss) available to stockholders to Adjusted
EBITDA for the three months ended March 31, 2017 and
2016:
|
|
|
|
|
|
|
For the Three
Months Ended
|
|
|
March 31,
|
|
|
2017
|
|
2016
|
|
|
(dollars in
thousands)
|
|
Net income (loss)
available to stockholders
|
$
|
7,327
|
|
|
$
|
(35,537)
|
|
|
Net income (loss)
attributable to non-controlling interest
|
2,947
|
|
|
(523)
|
|
|
Income tax expense
(benefit)
|
2,568
|
|
|
(21,236)
|
|
|
Interest
expense
|
15,117
|
|
|
18,307
|
|
|
Depreciation and
amortization
|
36,547
|
|
|
34,862
|
|
|
(Gain) loss on
disposition of assets
|
(476)
|
|
|
2,088
|
|
|
Unrealized losses on
commodity swaps
|
—
|
|
|
3,333
|
|
|
Adjusted
EBITDA
|
$
|
64,030
|
|
|
$
|
1,294
|
|
|
|
|
Adjusted EBITDA does
not exclude gains of $1,713 and $0 for the three months ended
March 31, 2017 and 2016, respectively, resulting from a price
adjustment related to asphalt inventory.
|
|
|
|
(6)
|
Includes corporate
capital expenditures of $86 and $1,436 for the three months ended
March 31, 2017 and 2016, respectively, which are not allocated
to our three operating segments.
|
|
|
|
(7)
|
During the three
months ended March 31, 2017, we adopted the FASB's recently issued
accounting guidance simplifying the presentation of deferred income
taxes. As a result of adopting this guidance, our current deferred
income tax asset that had previously been included as a current
asset in our consolidated balance sheets has been reclassified as a
reduction of our non-current deferred income tax liability. These
changes have been applied retrospectively to all periods
presented.
|
|
|
|
(8)
|
Net sales include
intersegment sales to our asphalt and retail segments at prices
which approximate wholesale market prices. These intersegment sales
are eliminated through consolidation of our financial
statements.
|
|
|
|
(9)
|
Refinery operating
margin is a per barrel measurement calculated by dividing the
margin between net sales and cost of sales (exclusive of certain
adjustments) attributable to each refinery by the refinery's
throughput volumes. Industry-wide refining results are driven and
measured by the margins between refined product prices and the
prices for crude oil, which are referred to as crack spreads. We
compare our refinery operating margins to these crack spreads to
assess our operating performance relative to other participants in
our industry.
|
|
|
|
The refinery
operating margin for the three months ended March 31, 2017
excludes a benefit of $27,746 related to the EPA approval of a
small refinery exemption for the Krotz Springs refinery from the
requirements of the renewable fuel standard for the 2016 calendar
year. The refinery operating margin for the three months ended
March 31, 2016 excludes realized and unrealized gains on
commodity swaps of $366.
|
|
|
|
(10)
|
The California
renewable fuels facility operating margin is a per barrel
measurement calculated by dividing the facility's margin between
net sales and cost of sales by the facility's throughput volumes.
Included in net sales are environmental credits in the form of
RINs, low-carbon fuel standards credits and blender's tax credits,
when effective, generated by the facility.
|
|
|
|
During the three
months ended March 31, 2017, we received no benefit from the
federal blender's tax credit as this legislation expired on
December 31, 2016. However, if the blender's tax credit is
reinstated and becomes effective retroactive to the beginning of
2017, we will record additional pre-tax income of $8,778, or $37.00
per barrel of throughput, related to product sales during the first
quarter of 2017 at the California renewable fuels
facility.
|
|
|
|
(11)
|
Refinery direct
operating expense is a per barrel measurement calculated by
dividing direct operating expenses at our refineries by the
applicable refinery's total throughput volumes.
|
|
|
|
(12)
|
We compare our Big
Spring refinery's operating margin to the Gulf Coast 3/2/1 crack
spread. A Gulf Coast 3/2/1 crack spread is calculated assuming that
three barrels of WTI Cushing crude oil are converted, or cracked,
into two barrels of Gulf Coast conventional gasoline and one barrel
of Gulf Coast ultra-low sulfur diesel.
|
|
|
|
We compare our Krotz
Springs refinery's operating margin to the Gulf Coast 2/1/1 high
sulfur diesel crack spread. A Gulf Coast 2/1/1 high sulfur diesel
crack spread is calculated assuming that two barrels of LLS crude
oil are converted into one barrel of Gulf Coast conventional
gasoline and one barrel of Gulf Coast high sulfur
diesel.
|
|
|
|
(13)
|
The WTI Cushing less
WTI Midland spread represents the differential between the average
price per barrel of WTI Cushing crude oil and the average price per
barrel of WTI Midland crude oil. The WTI Cushing less WTS, or
sweet/sour, spread represents the differential between the average
price per barrel of WTI Cushing crude oil and the average price per
barrel of WTS crude oil. The LLS less WTI Cushing spread represents
the differential between the average price per barrel of LLS crude
oil and the average price per barrel of WTI Cushing crude oil. The
Brent less WTI Cushing spread represents the differential between
the average price per barrel of Brent crude oil and the average
price per barrel of WTI Cushing crude oil. The Brent less LLS
spread represents the differential between the average price per
barrel of Brent crude oil and the average price per barrel of LLS
crude oil.
|
|
|
|
(14)
|
Total refinery
throughput represents the total barrels per day of crude oil and
blendstock inputs in the refinery production process. Total
throughput for the California renewable fuels facility represents
the total barrels per day of tallow and vegetable oils used by the
facility for the period following March 1, 2016.
|
|
|
|
(15)
|
Total refinery
production represents the barrels per day of various products
produced from processing crude and other refinery feedstocks
through the crude units and other conversion units at the
refineries. Total production for the California renewable fuels
facility represents the total barrels per day produced from
processing tallow and vegetable oils through the facility's units
for the period following March 1, 2016.
|
|
|
|
(16)
|
Refinery utilization
represents average daily crude oil throughput divided by crude oil
capacity, excluding planned periods of downtime for maintenance and
turnarounds.
|
|
|
|
(17)
|
Net sales and cost of
sales include asphalt purchases sold as part of a supply and
offtake arrangement of $13,397 and $14,118 for the three months
ended March 31, 2017 and 2016, respectively. The volumes
associated with these sales are excluded from the Key Operating
Statistics.
|
|
|
|
(18)
|
Cost of sales
includes intersegment purchases of asphalt blends and motor fuels
from our refining and marketing segment at prices which approximate
wholesale market prices. These intersegment purchases are
eliminated through consolidation of our financial
statements.
|
|
|
|
(19)
|
Blended asphalt
represents base material asphalt that has been blended with other
materials necessary to sell the asphalt as a finished
product.
|
|
|
|
(20)
|
Non-blended asphalt
represents base material asphalt and other components that require
additional blending before being sold as a finished
product.
|
|
|
|
(21)
|
Asphalt margin is a
per ton measurement calculated by dividing the margin between net
sales and cost of sales by the total sales volume. Asphalt margins
are used in the asphalt industry to measure operating results
related to asphalt sales.
|
|
|
|
Asphalt margin
excludes gains of $1,713 and $0 for the three months ended
March 31, 2017 and 2016, respectively, resulting from a price
adjustment related to asphalt inventory. These gains are included
in operating loss of the asphalt segment.
|
|
|
|
(22)
|
At March 31,
2017, we had 304 retail convenience stores of which 294 sold fuel.
At March 31, 2016, we had 309 retail convenience stores of
which 298 sold fuel.
|
|
|
|
(23)
|
Retail fuel margin
represents the difference between retail fuel sales revenue and the
net cost of purchased retail fuel, including transportation costs
and associated excise taxes, expressed on a cents-per-gallon basis.
Retail fuel margins are frequently used in the retail industry to
measure operating results related to retail fuel sales.
|
|
|
|
(24)
|
Retail fuel sales
price per gallon represents the average sales price for retail
fuels sold through our retail convenience stores.
|
|
|
|
(25)
|
Merchandise margin
represents the difference between merchandise sales revenues and
the delivered cost of merchandise purchases, net of rebates and
commissions, expressed as a percentage of merchandise sales
revenues. Merchandise margins, also referred to as in-store
margins, are commonly used in the retail industry to measure
in-store, or non-fuel, operating results.
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/alon-usa-energy-inc-reports-first-quarter-2017-results-300452872.html
SOURCE Alon USA Energy,
Inc.