DALLAS, May 4, 2016 /PRNewswire/ -- Alon
USA Energy, Inc. (NYSE: ALJ)
("Alon") today announced results for the first quarter of 2016. Net
loss available to stockholders for the first quarter of 2016 was
$(35.5) million, or $(0.51) per share, compared to net income
available to stockholders of $26.9
million, or $0.39 per share,
for the same period last year. Excluding special items, Alon
recorded net loss available to stockholders of $(29.2) million, or $(0.42) per share, for the first quarter of 2016,
compared to net income available to stockholders of $20.9 million, or $0.30 per share, for the same period last
year.
Paul Eisman, President and CEO,
commented, "Our first quarter results were negatively impacted by
depressed crack spreads, narrow crude differentials and by planned
downtime at our Big Spring
refinery, which included completing a reformer regeneration and a
catalyst replacement for our diesel hydrotreater unit. The average
benchmark crack spreads were approximately $6.50 per barrel lower than the average from the
first quarter 2015. It is not unusual for us to experience margin
weakness in the first quarter, and we are encouraged by
improvements in the benchmark crack spreads going into the second
quarter. Demand for gasoline is strong, and distillate demand is
improving. We've also seen some improvement in the Midland
differentials, which should support improved refinery
profitability.
"The Big Spring refinery
achieved a refinery operating margin of $7.77 per barrel and direct operating expense of
$4.07 per barrel in the first
quarter. We expect total throughput at the Big Spring refinery to average approximately
74,000 barrels per day for the second quarter and 73,000 barrels
per day for the full year of 2016.
"The Krotz Springs refinery's
results were also negatively impacted by weakness in crack spreads
and narrow crude differentials. During the first quarter we elected
to reduce the crude rate to improve the refinery yield structure
and averaged just over 63,000 barrels per day of crude and 71,500
barrels per day of total throughput. In April, we performed
maintenance on the fluid catalytic cracking unit at Krotz Springs, which reduced total throughput
for the month. Based on the projected margin environment, we expect
total throughput at the Krotz
Springs refinery to average approximately 64,000 barrels per
day for the second quarter and 72,000 barrels per day for the full
year of 2016.
"Our retail business was negatively affected by economic
conditions in the Permian Basin mostly offset by good performance
in our newly constructed and acquired stores. As we move into
spring, we see seasonally improved fuel and merchandise demand with
resulting improved profitability.
"We were pleased with the performance of our asphalt segment in
the first quarter, which is a seasonally weak quarter for asphalt
demand. Relative to the first quarter of 2015, our asphalt sales
volumes were up 37 percent, and our asphalt margin was $84 per ton. We maintain a positive outlook for
this business as we head into the 2016 paving season based on
improving demand in our markets and better efficiency within our
business.
"In February, production began at AltAir, a renewable fuels project located at
our southern California refinery,
in which we own a majority interest. AltAir contributed operating income of
$7.2 million in the first quarter.
Based on current market conditions and operations consistent with
our plan, it is our expectation that the operating income of
AltAir will substantially offset
the operating loss of our California refineries in 2016."
FIRST QUARTER 2016
Special items reduced net loss by $6.3
million for the first quarter of 2016 primarily as a result
of an after-tax employee retention expense of $2.9 million, after-tax unrealized losses of
$2.1 million associated with
commodity swaps and $1.3 million
associated with after-tax losses recognized on disposition of
assets. Special items reduced net income by $6.0 million for the first quarter of 2015
primarily as a result of after-tax unrealized gains of $13.4 million associated with commodity swaps and
$0.4 million associated with
after-tax gains recognized on disposition of assets, partially
offset by after-tax losses of $7.7
million related to an asphalt inventory adjustment.
The combined total refinery average throughput for the first
quarter of 2016 was 138,998 barrels per day ("bpd"), consisting of
67,536 bpd at the Big Spring
refinery and 71,462 bpd at the Krotz
Springs refinery, compared to a combined total refinery
average throughput of 145,229 bpd for the first quarter of 2015,
consisting of 72,360 bpd at the Big
Spring refinery and 72,869 bpd at the Krotz Springs refinery. The reduced throughput
at our Big Spring refinery was the
result of planned downtime to complete a reformer regeneration and
catalyst replacement for our diesel hydrotreater unit in the
beginning of the first quarter of 2016.
Refinery operating margin at the Big
Spring refinery was $7.77 per
barrel for the first quarter of 2016 compared to $13.80 per barrel for the same period in 2015.
This decrease in operating margin was primarily due to a lower Gulf
Coast 3/2/1 crack spread and a narrowing of both the WTI Cushing to
WTI Midland and the WTI Cushing to WTS spreads, partially offset by
the cost of crude benefit from the market moving further into
contango in 2016.
Refinery operating margin at the Krotz
Springs refinery was $1.59 per
barrel for the first quarter of 2016 compared to $9.52 per barrel for the same period in 2015.
This decrease in operating margin was primarily due to a lower Gulf
Coast 2/1/1 high sulfur diesel crack spread and a narrowing of both
the WTI Cushing to WTI Midland and the LLS to WTI Cushing spreads,
partially offset by the cost of crude benefit from the market
moving further into contango in 2016.
The average Gulf Coast 3/2/1 crack spread was $11.24 per barrel for the first quarter of 2016
compared to $17.74 per barrel for the
same period in 2015. The average Gulf Coast 2/1/1 high sulfur
diesel crack spread was $6.74 per
barrel for the first quarter of 2016 compared to $13.41 per barrel for the same period in
2015.
The average WTI Cushing to WTI Midland spread for the first
quarter of 2016 was $(0.13) per
barrel compared to $1.95 per barrel
for the same period in 2015. The average WTI Cushing to WTS spread
for the first quarter of 2016 was $(0.10) per barrel compared to $1.76 per barrel for the same period in 2015. The
average Brent to WTI Cushing spread for the first quarter of 2016
was $0.49 per barrel compared to
$5.44 per barrel for the same period
in 2015. The average LLS to WTI Cushing spread for the first
quarter of 2016 was $1.60 per barrel
compared to $2.64 per barrel for the
same period in 2015. The average Brent to LLS spread for the first
quarter of 2016 was $(0.89) per
barrel compared to $0.84 per barrel
for the same period in 2015.
The contango environment in the first quarter of 2016 created an
average cost of crude benefit of $1.83 per barrel compared to an average cost of
crude benefit of $0.65 per barrel for
the same period in 2015.
Asphalt margins for the first quarter of 2016 were $84.16 per ton compared to $84.76 per ton for the same period in 2015. On a
cash basis (i.e., excluding inventory effects), asphalt margins in
the first quarter of 2016 were $91.12
per ton compared to $115.05 per ton
in the first quarter of 2015.
Retail fuel margins decreased to 19.9
cents per gallon in the first quarter of 2016 from
23.6 cents per gallon in the first
quarter of 2015. Retail fuel sales volume increased to 50.0 million
gallons in the first quarter of 2016 from 46.1 million gallons in
the first quarter of 2015. Merchandise margins decreased to 31.5%
in the first quarter of 2016 from 33.2% in the first quarter of
2015. Merchandise sales increased to $77.8
million in the first quarter of 2016 from $76.1 million in the first quarter of 2015.
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 6, 2016 to stockholders of
record at the close of business on May 19,
2016.
CONFERENCE CALL
Alon has scheduled a conference call, which will be broadcast
live over the Internet on Thursday, May 5,
2016, at 11:30 a.m. Eastern
Time (10:30 a.m. Central
Time), to discuss the first quarter 2016 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 19,
2016 and may be accessed by calling 877-660-6853, or
201-612-7415 for international callers, and using the passcode
13634020#. 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 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, 2015, IS UNAUDITED)
|
For the Three
Months Ended
|
|
March 31,
|
|
2016
|
|
2015
|
|
(dollars in
thousands, except per share data)
|
|
STATEMENTS OF
OPERATIONS DATA:
|
|
|
|
|
Net sales
(1)
|
$
|
849,973
|
|
|
$
|
1,103,240
|
|
|
Operating costs and
expenses:
|
|
|
|
|
Cost of
sales
|
735,144
|
|
|
894,488
|
|
|
Direct operating
expenses
|
68,617
|
|
|
64,205
|
|
|
Selling, general and
administrative expenses (2)
|
48,701
|
|
|
45,596
|
|
|
Depreciation and
amortization (3)
|
34,862
|
|
|
31,962
|
|
|
Total operating costs
and expenses
|
887,324
|
|
|
1,036,251
|
|
|
Gain (loss) on
disposition of assets
|
(2,088)
|
|
|
572
|
|
|
Operating income
(loss)
|
(39,439)
|
|
|
67,561
|
|
|
Interest
expense
|
(18,307)
|
|
|
(21,037)
|
|
|
Equity earnings
(losses) of investees
|
378
|
|
|
(554)
|
|
|
Other income,
net
|
72
|
|
|
46
|
|
|
Income (loss) before
income tax expense (benefit)
|
(57,296)
|
|
|
46,016
|
|
|
Income tax expense
(benefit)
|
(21,236)
|
|
|
11,961
|
|
|
Net income
(loss)
|
(36,060)
|
|
|
34,055
|
|
|
Net income (loss)
attributable to non-controlling interest
|
(523)
|
|
|
7,116
|
|
|
Net income (loss)
available to stockholders
|
$
|
(35,537)
|
|
|
$
|
26,939
|
|
|
Earnings (loss) per
share, basic
|
$
|
(0.51)
|
|
|
$
|
0.39
|
|
|
Weighted average
shares outstanding, basic (in thousands)
|
70,143
|
|
|
69,485
|
|
|
Earnings (loss) per
share, diluted
|
$
|
(0.51)
|
|
|
$
|
0.38
|
|
|
Weighted average
shares outstanding, diluted (in thousands)
|
70,143
|
|
|
71,142
|
|
|
Cash dividends per
share
|
$
|
0.15
|
|
|
$
|
0.10
|
|
|
CASH FLOW
DATA:
|
|
|
|
|
Net cash provided by
(used in):
|
|
|
|
|
Operating
activities
|
$
|
(29,351)
|
|
|
$
|
(19,221)
|
|
|
Investing
activities
|
(47,017)
|
|
|
(11,613)
|
|
|
Financing
activities
|
35,624
|
|
|
6,338
|
|
|
OTHER
DATA:
|
|
|
|
|
Adjusted net income
(loss) available to stockholders (4)
|
$
|
(29,233)
|
|
|
$
|
20,910
|
|
|
Adjusted earnings
(loss) per share (4)
|
$
|
(0.42)
|
|
|
$
|
0.30
|
|
|
Adjusted EBITDA
(5)
|
$
|
1,294
|
|
|
$
|
80,040
|
|
|
Capital expenditures
(6)
|
23,446
|
|
|
10,749
|
|
|
Capital expenditures
for turnarounds and catalysts
|
16,610
|
|
|
2,333
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
2016
|
|
December 31,
2015
|
|
BALANCE SHEET DATA
(end of period):
|
(dollars in
thousands)
|
|
Cash and cash
equivalents
|
$
|
193,383
|
|
|
$
|
234,127
|
|
|
Working
capital
|
45,323
|
|
|
78,694
|
|
|
Total
assets
|
2,213,210
|
|
|
2,176,138
|
|
|
Total debt
|
554,062
|
|
|
555,962
|
|
|
Total debt less cash
and cash equivalents
|
360,679
|
|
|
321,835
|
|
|
Total
equity
|
659,499
|
|
|
664,160
|
|
|
|
|
|
|
|
|
|
|
|
REFINING AND
MARKETING SEGMENT
|
|
|
|
|
For the Three
Months Ended
|
|
March 31,
|
|
2016
|
|
2015
|
|
(dollars in
thousands, except per barrel data and pricing
statistics)
|
|
STATEMENTS OF
OPERATIONS DATA:
|
|
|
|
|
Net sales
(7)
|
$
|
696,613
|
|
|
$
|
959,492
|
|
|
Operating costs and
expenses:
|
|
|
|
|
Cost of
sales
|
626,036
|
|
|
783,391
|
|
|
Direct operating
expenses
|
62,793
|
|
|
56,326
|
|
|
Selling, general and
administrative expenses
|
18,275
|
|
|
17,339
|
|
|
Depreciation and
amortization
|
29,784
|
|
|
27,311
|
|
|
Total operating costs
and expenses
|
736,888
|
|
|
884,367
|
|
|
Gain (loss) on
disposition of assets
|
(2,088)
|
|
|
522
|
|
|
Operating income
(loss)
|
$
|
(42,363)
|
|
|
$
|
75,647
|
|
|
KEY OPERATING
STATISTICS:
|
|
|
|
|
Per barrel of
throughput:
|
|
|
|
|
Refinery operating
margin – Big Spring (8)
|
$
|
7.77
|
|
|
$
|
13.80
|
|
|
Refinery operating
margin – Krotz Springs (8)
|
1.59
|
|
|
9.52
|
|
|
Refinery direct
operating expense – Big Spring (9)
|
4.07
|
|
|
3.60
|
|
|
Refinery direct
operating expense – Krotz Springs (9)
|
3.83
|
|
|
3.80
|
|
|
Capital
expenditures
|
$
|
18,559
|
|
|
$
|
4,406
|
|
|
Capital expenditures
for turnarounds and catalysts
|
16,610
|
|
|
2,333
|
|
|
PRICING
STATISTICS:
|
|
|
|
|
Crack spreads (3/2/1)
(per barrel):
|
|
|
|
|
Gulf Coast
(10)
|
$
|
11.24
|
|
|
$
|
17.74
|
|
|
Crack spreads (2/1/1)
(per barrel):
|
|
|
|
|
Gulf Coast high
sulfur diesel (10)
|
$
|
6.74
|
|
|
$
|
13.41
|
|
|
WTI Cushing crude oil
(per barrel)
|
$
|
33.30
|
|
|
$
|
48.48
|
|
|
Crude oil
differentials (per barrel):
|
|
|
|
|
WTI Cushing less WTI
Midland (11)
|
$
|
(0.13)
|
|
|
$
|
1.95
|
|
|
WTI Cushing less WTS
(11)
|
(0.10)
|
|
|
1.76
|
|
|
LLS less WTI Cushing
(11)
|
1.60
|
|
|
2.64
|
|
|
Brent less LLS
(11)
|
(0.89)
|
|
|
0.84
|
|
|
Brent less WTI
Cushing (11)
|
0.49
|
|
|
5.44
|
|
|
Product prices
(dollars per gallon):
|
|
|
|
|
Gulf Coast unleaded
gasoline
|
$
|
1.07
|
|
|
$
|
1.52
|
|
|
Gulf Coast ultra-low
sulfur diesel
|
1.03
|
|
|
1.69
|
|
|
Gulf Coast high
sulfur diesel
|
0.91
|
|
|
1.55
|
|
|
Natural gas (per
MMBtu)
|
1.98
|
|
|
2.81
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THROUGHPUT AND
PRODUCTION DATA:
BIG SPRING
REFINERY
|
For the Three
Months Ended
|
|
March 31,
|
|
2016
|
|
2015
|
|
bpd
|
|
%
|
|
bpd
|
|
%
|
|
Refinery
throughput:
|
|
|
|
|
|
|
|
|
WTS crude
|
36,554
|
|
|
54.1
|
|
|
44,865
|
|
|
62.0
|
|
|
WTI crude
|
27,760
|
|
|
41.1
|
|
|
24,137
|
|
|
33.4
|
|
|
Blendstocks
|
3,222
|
|
|
4.8
|
|
|
3,358
|
|
|
4.6
|
|
|
Total refinery
throughput (12)
|
67,536
|
|
|
100.0
|
|
|
72,360
|
|
|
100.0
|
|
|
Refinery
production:
|
|
|
|
|
|
|
|
|
Gasoline
|
34,100
|
|
|
50.5
|
|
|
36,192
|
|
|
49.7
|
|
|
Diesel/jet
|
22,682
|
|
|
33.6
|
|
|
26,086
|
|
|
35.9
|
|
|
Asphalt
|
3,148
|
|
|
4.6
|
|
|
3,278
|
|
|
4.5
|
|
|
Petrochemicals
|
3,617
|
|
|
5.3
|
|
|
4,810
|
|
|
6.6
|
|
|
Other
|
4,027
|
|
|
6.0
|
|
|
2,394
|
|
|
3.3
|
|
|
Total refinery
production (13)
|
67,574
|
|
|
100.0
|
|
|
72,760
|
|
|
100.0
|
|
|
Refinery utilization
(14)
|
|
|
93.2
|
%
|
|
|
|
94.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THROUGHPUT AND
PRODUCTION DATA:
KROTZ SPRINGS
REFINERY
|
For the Three
Months Ended
|
|
March 31,
|
|
2016
|
|
2015
|
|
bpd
|
|
%
|
|
bpd
|
|
%
|
|
Refinery
throughput:
|
|
|
|
|
|
|
|
|
WTI crude
|
13,797
|
|
|
19.3
|
|
|
30,353
|
|
|
41.7
|
|
|
Gulf Coast sweet
crude
|
49,350
|
|
|
69.1
|
|
|
37,038
|
|
|
50.8
|
|
|
Blendstocks
|
8,315
|
|
|
11.6
|
|
|
5,478
|
|
|
7.5
|
|
|
Total refinery
throughput (12)
|
71,462
|
|
|
100.0
|
|
|
72,869
|
|
|
100.0
|
|
|
Refinery
production:
|
|
|
|
|
|
|
|
|
Gasoline
|
36,274
|
|
|
49.7
|
|
|
34,527
|
|
|
46.3
|
|
|
Diesel/jet
|
26,989
|
|
|
37.0
|
|
|
30,690
|
|
|
41.2
|
|
|
Heavy Oils
|
1,534
|
|
|
2.1
|
|
|
1,334
|
|
|
1.8
|
|
|
Other
|
8,157
|
|
|
11.2
|
|
|
7,995
|
|
|
10.7
|
|
|
Total refinery
production (13)
|
72,954
|
|
|
100.0
|
|
|
74,546
|
|
|
100.0
|
|
|
Refinery utilization
(14)
|
|
|
85.3
|
%
|
|
|
|
91.1
|
%
|
|
|
|
|
|
|
|
|
|
|
ASPHALT
SEGMENT
|
|
|
|
|
For the Three
Months Ended
|
|
March 31,
|
|
2016
|
|
2015
|
|
(dollars in
thousands, except per ton data)
|
|
STATEMENTS OF
OPERATIONS DATA:
|
|
|
|
|
Net sales
(15)
|
$
|
53,499
|
|
|
$
|
50,652
|
|
|
Operating costs and
expenses:
|
|
|
|
|
Cost of sales (15)
(16)
|
43,865
|
|
|
54,283
|
|
|
Direct operating
expenses
|
5,824
|
|
|
7,879
|
|
|
Selling, general and
administrative expenses
|
3,198
|
|
|
1,776
|
|
|
Depreciation and
amortization
|
1,260
|
|
|
1,145
|
|
|
Total operating costs
and expenses
|
54,147
|
|
|
65,083
|
|
|
Operating loss
(19)
|
$
|
(648)
|
|
|
$
|
(14,431)
|
|
|
KEY OPERATING
STATISTICS:
|
|
|
|
|
Blended asphalt sales
volume (tons in thousands) (17)
|
85
|
|
|
65
|
|
|
Non-blended asphalt
sales volume (tons in thousands) (18)
|
29
|
|
|
18
|
|
|
Blended asphalt sales
price per ton (17)
|
$
|
413.78
|
|
|
$
|
487.68
|
|
|
Non-blended asphalt
sales price per ton (18)
|
145.17
|
|
|
390.83
|
|
|
Asphalt margin per
ton (19)
|
84.16
|
|
|
84.76
|
|
|
Capital
expenditures
|
$
|
740
|
|
|
$
|
1,406
|
|
|
|
|
|
|
|
|
|
|
|
RETAIL
SEGMENT
|
|
|
|
|
For the Three
Months Ended
|
|
March 31,
|
|
2016
|
|
2015
|
|
(dollars in
thousands, except per gallon data)
|
|
STATEMENTS OF
OPERATIONS DATA:
|
|
|
|
|
Net sales
(1)
|
$
|
162,971
|
|
|
$
|
175,985
|
|
|
Operating costs and
expenses:
|
|
|
|
|
Cost of sales
(16)
|
128,353
|
|
|
139,703
|
|
|
Selling, general and
administrative expenses
|
27,037
|
|
|
26,305
|
|
|
Depreciation and
amortization
|
3,399
|
|
|
3,037
|
|
|
Total operating costs
and expenses
|
158,789
|
|
|
169,045
|
|
|
Gain on disposition
of assets
|
—
|
|
|
50
|
|
|
Operating
income
|
$
|
4,182
|
|
|
$
|
6,990
|
|
|
KEY OPERATING
STATISTICS:
|
|
|
|
|
Number of stores (end
of period) (20)
|
309
|
|
|
293
|
|
|
Retail fuel sales
(thousands of gallons)
|
50,005
|
|
|
46,095
|
|
|
Retail fuel sales
(thousands of gallons per site per month) (20)
|
56
|
|
|
54
|
|
|
Retail fuel margin
(cents per gallon) (21)
|
19.9
|
|
|
23.6
|
|
|
Retail fuel sales
price (dollars per gallon) (22)
|
$
|
1.70
|
|
|
$
|
2.16
|
|
|
Merchandise
sales
|
$
|
77,825
|
|
|
$
|
76,102
|
|
|
Merchandise sales
(per site per month) (20)
|
$
|
84
|
|
|
$
|
87
|
|
|
Merchandise margin
(23)
|
31.5
|
%
|
|
33.2
|
%
|
|
Capital
expenditures
|
$
|
2,711
|
|
|
$
|
3,316
|
|
|
|
|
(1)
|
Includes excise taxes
on sales by the retail segment of $19,525 and $18,056 for the three
months ended March 31, 2016 and 2015, respectively.
|
|
|
|
(2)
|
Includes corporate
headquarters selling, general and administrative expenses of $191
and $176 for the three months ended March 31, 2016 and 2015,
respectively, which are not allocated to our three operating
segments.
|
|
|
|
(3)
|
Includes corporate
depreciation and amortization of $419 and $469 for the three months
ended March 31, 2016 and 2015, 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
loss on asphalt inventory adjustment, after-tax unrealized (gains)
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,
|
|
|
|
2016
|
|
2015
|
|
|
|
(dollars in
thousands)
|
|
|
Net income (loss)
available to stockholders
|
$
|
(35,537)
|
|
|
$
|
26,939
|
|
|
|
Plus: Employee
retention expense, net of tax
|
2,927
|
|
|
—
|
|
|
|
Plus: Loss on asphalt
inventory adjustment, net of tax
|
—
|
|
|
7,739
|
|
|
|
Less: Unrealized
(gains) losses on commodity swaps, net of tax
|
2,076
|
|
|
(13,353)
|
|
|
|
Less: (Gain) loss on
disposition of assets, net of tax
|
1,301
|
|
|
(415)
|
|
|
|
Adjusted net income
(loss) available to stockholders
|
$
|
(29,233)
|
|
|
$
|
20,910
|
|
|
|
Adjusted earnings
(loss) per share *
|
$
|
(0.42)
|
|
|
$
|
0.30
|
|
|
|
|
|
|
*
|
Adjusted earnings
(loss) per share includes the effects of dividends on preferred
stock on adjusted net income (loss) available to stockholders
necessary to calculate earnings per share.
|
|
|
|
|
(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 (gains) 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 (gains) 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, 2016 and
2015:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended
|
|
|
|
March 31,
|
|
|
|
2016
|
|
2015
|
|
|
|
(dollars in
thousands)
|
|
|
Net income (loss)
available to stockholders
|
$
|
(35,537)
|
|
|
$
|
26,939
|
|
|
|
Net income (loss)
attributable to non-controlling interest
|
(523)
|
|
|
7,116
|
|
|
|
Income tax expense
(benefit)
|
(21,236)
|
|
|
11,961
|
|
|
|
Interest
expense
|
18,307
|
|
|
21,037
|
|
|
|
Depreciation and
amortization
|
34,862
|
|
|
31,962
|
|
|
|
(Gain) loss on
disposition of assets
|
2,088
|
|
|
(572)
|
|
|
|
Unrealized (gains)
losses on commodity swaps
|
3,333
|
|
|
(18,403)
|
|
|
|
Adjusted
EBITDA
|
$
|
1,294
|
|
|
$
|
80,040
|
|
|
|
|
|
|
|
|
Adjusted EBITDA does
not exclude a loss of $10,666 for the three months ended
March 31, 2015 resulting from a price adjustment related to
asphalt inventory.
|
|
|
|
(6)
|
Includes corporate
capital expenditures of $1,436 and $1,621 for the three months
ended March 31, 2016 and 2015, respectively, which are not
allocated to our three operating segments.
|
|
|
|
(7)
|
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.
|
|
|
|
(8)
|
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, 2016
excludes realized and unrealized gains on commodity swaps of
$366.
|
|
|
|
The refinery
operating margin for the three months ended March 31, 2015
excludes realized and unrealized gains on commodity swaps of
$29,843, as well as a loss of $9,035 related substantially to
inventory adjustments, which was not included in cost of sales for
the Big Spring refinery and the Krotz Springs refinery.
|
|
|
|
(9)
|
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.
|
|
|
|
(10)
|
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.
|
|
|
|
(11)
|
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 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. 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.
|
|
|
|
(12)
|
Total refinery
throughput represents the total barrels per day of crude oil and
blendstock inputs in the refinery production process.
|
|
|
|
(13)
|
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.
|
|
|
|
(14)
|
Refinery utilization
represents average daily crude oil throughput divided by crude oil
capacity, excluding planned periods of downtime for maintenance and
turnarounds.
|
|
|
|
(15)
|
Net sales and cost of
sales include asphalt purchases sold as part of a supply and
offtake arrangement of $14,118 and $11,918 for the three months
ended March 31, 2016 and 2015, respectively. The volumes
associated with these sales are excluded from the Key Operating
Statistics.
|
|
|
|
(16)
|
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.
|
|
|
|
(17)
|
Blended asphalt
represents base material asphalt that has been blended with other
materials necessary to sell the asphalt as a finished
product.
|
|
|
|
(18)
|
Non-blended asphalt
represents base material asphalt and other components that require
additional blending before being sold as a finished
product.
|
|
|
|
(19)
|
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 for
the three months ended March 31, 2015 excludes a loss of
$10,666 resulting from a price adjustment related to asphalt
inventory. This loss is included in operating loss
above.
|
|
|
|
(20)
|
At March 31,
2016, we had 309 retail convenience stores of which 298 sold fuel.
At March 31, 2015, we had 293 retail convenience stores of
which 282 sold fuel.
|
|
|
|
The 14 retail
convenience stores acquired in August 2015 have been included in
the per site key operating statistics only for the period after
acquisition.
|
|
|
|
(21)
|
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.
|
|
|
|
(22)
|
Retail fuel sales
price per gallon represents the average sales price for retail
fuels sold through our retail convenience stores.
|
|
|
|
(23)
|
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-2016-results-300263225.html
SOURCE Alon USA Energy,
Inc.