DALLAS, May 7, 2015 /PRNewswire/ -- Alon USA Energy, Inc. (NYSE: ALJ) ("Alon") today
announced results for the first quarter of 2015. Net income
available to stockholders for the first quarter of 2015 was
$26.9 million, or $0.39 per share, compared to net income available
to stockholders of $0.8 million, or
$0.01 per share, for the same period
last year. Excluding special items, Alon recorded net income
available to stockholders of $20.9
million, or $0.30 per share,
for the first quarter of 2015, compared to net income available to
stockholders of $4.2 million, or
$0.06 per share, for the same period
last year.
Paul Eisman, President and CEO,
commented, "We are pleased to start 2015 with strong operations and
solid financial results. The Big
Spring refinery operated very well during the quarter,
achieving liquid recovery of approximately 101% and low direct
operating expense of only $3.60 per
barrel. The average throughput at Big
Spring for the quarter was 72,300 barrels per day while
generating a refinery operating margin of $13.80 per barrel. Our results for the first
quarter were negatively impacted by a challenging wholesale
marketing environment resulting from seasonal gasoline weakness in
addition to the rise in fuel and RINs prices during the
quarter.
"The Krotz Springs refinery
also performed very well in the first quarter 2015 with an
improvement in the Gulf Coast 2/1/1 crack spread complemented by
robust operations. Krotz Springs
achieved an average throughput of 72,800 barrels per day and
generated a refinery operating margin of $9.52 per barrel. The refinery's strong
operational performance was highlighted by liquid recovery of
102.3% and low direct operating expense of only $3.80 per barrel.
"Our retail business had its best first quarter ever, supported
by attractive fuel and merchandise margins. With lower fuel prices
at the pump, our retail customers are increasingly purchasing
higher-margin products, driving an improvement in our merchandise
margins.
"Interest expense for the first quarter of 2015 was $7 million lower than the first quarter of 2014
primarily from the crude oil price environment moving from
backwardation into contango. A component of our supply and offtake
agreements fees, which affects our interest expense, is related to
the crude oil price environment whereby a backwardated environment
adds to our expense and a contango environment reduces our expense.
With the forward market now in contango, we expect to reduce our
interest expense for the year by $20
million versus 2014.
"On April 14, 2015, Delek US
Holdings, Inc. entered into a definitive stock purchase agreement
with Alon Israel to purchase
approximately 48% of the Company's common stock. This transaction,
which has received Hart-Scott-Rodino clearance, is expected to
close as early as May 12, 2015. I am
excited about the opportunities this transaction could provide.
"We expect total throughput at the Big
Spring refinery to average approximately 73,000 barrels per
day for the second quarter of 2015 and 72,000 barrels per day for
the full year of 2015. We expect total throughput at the
Krotz Springs refinery to average
approximately 76,000 barrels per day for the second quarter of 2015
and 69,000 barrels per day for the full year of 2015 due to the
turnaround scheduled in the fourth quarter of 2015."
FIRST QUARTER 2015
Special items increased earnings 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. Special items reduced earnings by
$3.4 million for the first quarter of
2014 primarily as a result of after-tax unrealized losses of
$5.1 million associated with
commodity swaps, partially offset by $1.7
million associated with after-tax gains recognized on
disposition of assets.
The combined total refinery average throughput for the first
quarter of 2015 was 145,229 barrels per day ("bpd"), consisting of
72,360 bpd at the Big Spring
refinery and 72,869 bpd at the Krotz
Springs refinery, compared to a combined total refinery
average throughput of 135,363 bpd for the first quarter of 2014,
consisting of 73,296 bpd at the Big
Spring refinery and 62,067 bpd at the Krotz Springs refinery.
Refinery operating margin at the Big
Spring refinery was $13.80 per
barrel for the first quarter of 2015 compared to $14.77 per barrel for the same period in 2014.
This decrease in operating margin was primarily due to a narrowing
of both the WTI Cushing to WTS spread and the WTI Cushing to WTI
Midland spread, partially offset by a higher Gulf Coast 3/2/1 crack
spread.
Refinery operating margin at the Krotz
Springs refinery was $9.52 per
barrel for the first quarter of 2015 compared to $7.39 per barrel for the same period in 2014.
This increase in operating margin was primarily due to a higher
Gulf Coast 2/1/1 high sulfur diesel crack spread, partially offset
by a narrowing of both the WTI Cushing to WTI Midland spread and
the LLS to WTI Cushing spread.
The average Gulf Coast 3/2/1 crack spread was $17.74 per barrel for the first quarter of 2015
compared to $16.81 per barrel for the
same period in 2014. The average Gulf Coast 2/1/1 high sulfur
diesel crack spread was $13.41 per
barrel for the first quarter of 2015 compared to $10.75 per barrel for the same period in
2014.
The average WTI Cushing to WTS spread for the first quarter of
2015 was $1.76 per barrel compared to
$3.67 per barrel for the same period
in 2014. The average WTI Cushing to WTI Midland spread for the
first quarter of 2015 was $1.95 per
barrel compared to $3.54 per barrel
for the same period in 2014. The average LLS to WTI Cushing spread
for the first quarter of 2015 was $2.64 per barrel compared to $6.00 per barrel for the same period in 2014.
Asphalt margins for the first quarter of 2015 were $84.76 per ton compared to $79.59 per ton for the same period in 2014. On a
cash basis (i.e., excluding inventory effects), asphalt margins in
the first quarter of 2015 were $115.05 per ton compared to $88.80 per ton in the first quarter of 2014. This
increase was primarily due to lower costs of asphalt purchased
during the first quarter of 2015 compared to the first quarter of
2014.
Retail fuel sales volume increased to 46.1 million gallons in
the first quarter of 2015 from 45.5 million gallons in the first
quarter of 2014. Merchandise margins increased to 33.2% in the
first quarter of 2015 from 31.5% in the first quarter of 2014.
Alon also announced today that its Board of Directors has
declared an increase in the regular quarterly cash dividend of
$0.10 to $0.15 per share, or from $0.40 to $0.60 per
share per annum. The dividend is payable on June 5, 2015 to stockholders of record at the
close of business on May 19,
2015.
CONFERENCE CALL
Alon has scheduled a conference call, which will be broadcast
live over the internet on Friday, May 8,
2015, at 11:30 a.m. Eastern
Time (10:30 a.m. Central
Time), to discuss the first quarter 2015 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 22,
2015, and may be accessed by calling 877-660-6853, or
201-612-7415 for international callers, and using the passcode
13605356#. 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 approximately 82% 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. In addition, Alon directly owns crude oil refineries in
Krotz Springs, Louisiana with a
crude oil throughput capacity of 74,000 barrels per day and in
California with a crude oil
throughput capacity of 70,000 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 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 Hudson,
Investor Relations Manager
|
|
Alon USA Energy,
Inc.
|
|
972-367-3808
|
|
|
|
Investors: Jack
Lascar/Stephanie Smith
|
|
Dennard - Lascar
Associates, LLC 713-529-6600
|
|
Media: Blake
Lewis
|
|
Lewis Public
Relations
|
|
214-635-3020
|
|
Ruth
Sheetrit
|
|
SMG Public
Relations
|
|
011-972-547-555551
|
- 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, 2014, IS UNAUDITED)
|
For the Three
Months Ended
|
|
March
31,
|
|
2015
|
|
2014
|
|
(dollars in
thousands, except per share data)
|
|
STATEMENT OF
OPERATIONS DATA:
|
|
|
|
|
Net sales
(1)
|
$
|
1,103,240
|
|
|
$
|
1,683,245
|
|
|
Operating costs and
expenses:
|
|
|
|
|
Cost of
sales
|
894,488
|
|
|
1,506,545
|
|
|
Direct operating
expenses
|
64,205
|
|
|
70,678
|
|
|
Selling, general and
administrative expenses (2)
|
45,596
|
|
|
39,389
|
|
|
Depreciation and
amortization (3)
|
31,962
|
|
|
29,878
|
|
|
Total operating costs
and expenses
|
1,036,251
|
|
|
1,646,490
|
|
|
Gain on disposition
of assets
|
572
|
|
|
2,205
|
|
|
Operating
income
|
67,561
|
|
|
38,960
|
|
|
Interest
expense
|
(21,037)
|
|
|
(28,015)
|
|
|
Equity losses of
investees
|
(554)
|
|
|
(459)
|
|
|
Other income (loss),
net
|
46
|
|
|
(17)
|
|
|
Income before income
tax expense
|
46,016
|
|
|
10,469
|
|
|
Income tax
expense
|
11,961
|
|
|
2,094
|
|
|
Net income
|
34,055
|
|
|
8,375
|
|
|
Net income
attributable to non-controlling interest
|
7,116
|
|
|
7,590
|
|
|
Net income available
to stockholders
|
$
|
26,939
|
|
|
$
|
785
|
|
|
Earnings per share,
basic
|
$
|
0.39
|
|
|
$
|
0.01
|
|
|
Weighted average
shares outstanding, basic (in thousands)
|
69,485
|
|
|
68,617
|
|
|
Earnings per share,
diluted
|
$
|
0.38
|
|
|
$
|
0.01
|
|
|
Weighted average
shares outstanding, diluted (in thousands)
|
71,142
|
|
|
69,067
|
|
|
Cash dividends per
share
|
$
|
0.10
|
|
|
$
|
0.06
|
|
|
CASH FLOW
DATA:
|
|
|
|
|
Net cash provided by
(used in):
|
|
|
|
|
Operating
activities
|
$
|
(19,221)
|
|
|
$
|
62,714
|
|
|
Investing
activities
|
(11,613)
|
|
|
6,396
|
|
|
Financing
activities
|
6,338
|
|
|
61,683
|
|
|
OTHER
DATA:
|
|
|
|
|
Adjusted net income
available to stockholders (4)
|
$
|
20,910
|
|
|
$
|
4,195
|
|
|
Adjusted earnings per
share (4)
|
$
|
0.30
|
|
|
$
|
0.06
|
|
|
Adjusted EBITDA
(5)
|
$
|
80,040
|
|
|
$
|
72,763
|
|
|
Capital expenditures
(6)
|
10,749
|
|
|
18,160
|
|
|
Capital expenditures
for turnarounds and catalysts
|
2,333
|
|
|
14,847
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
2015
|
|
December 31,
2014
|
|
BALANCE SHEET DATA
(end of period):
|
(dollars in
thousands)
|
|
Cash and cash
equivalents
|
$
|
190,465
|
|
|
$
|
214,961
|
|
|
Working
capital
|
144,500
|
|
|
126,665
|
|
|
Total
assets
|
2,174,423
|
|
|
2,200,874
|
|
|
Total debt
|
551,419
|
|
|
563,687
|
|
|
Total debt less cash
and cash equivalents
|
360,954
|
|
|
348,726
|
|
|
Total
equity
|
689,657
|
|
|
673,778
|
|
|
|
|
|
|
|
|
|
|
|
REFINING AND
MARKETING SEGMENT
|
|
|
|
|
For the Three
Months Ended
|
|
March
31,
|
|
2015
|
|
2014
|
|
(dollars in
thousands, except per barrel data and pricing
statistics)
|
|
STATEMENT OF
OPERATIONS DATA:
|
|
|
|
|
Net sales
(7)
|
$
|
959,492
|
|
|
$
|
1,504,918
|
|
|
Operating costs and
expenses:
|
|
|
|
|
Cost of
sales
|
783,391
|
|
|
1,368,214
|
|
|
Direct operating
expenses
|
56,326
|
|
|
60,798
|
|
|
Selling, general and
administrative expenses
|
17,339
|
|
|
10,534
|
|
|
Depreciation and
amortization
|
27,311
|
|
|
25,368
|
|
|
Total operating costs
and expenses
|
884,367
|
|
|
1,464,914
|
|
|
Gain on disposition
of assets
|
522
|
|
|
—
|
|
|
Operating
income
|
$
|
75,647
|
|
|
$
|
40,004
|
|
|
KEY OPERATING
STATISTICS:
|
|
|
|
|
Per barrel of
throughput:
|
|
|
|
|
Refinery operating
margin – Big Spring (8)
|
$
|
13.80
|
|
|
$
|
14.77
|
|
|
Refinery operating
margin – Krotz Springs (8)
|
9.52
|
|
|
7.39
|
|
|
Refinery direct
operating expense – Big Spring (9)
|
3.60
|
|
|
4.39
|
|
|
Refinery direct
operating expense – Krotz Springs (9)
|
3.80
|
|
|
4.56
|
|
|
Capital
expenditures
|
$
|
4,406
|
|
|
$
|
12,196
|
|
|
Capital expenditures
for turnarounds and catalysts
|
2,333
|
|
|
14,847
|
|
|
PRICING
STATISTICS:
|
|
|
|
|
Crack spreads (3/2/1)
(per barrel):
|
|
|
|
|
Gulf Coast
(10)
|
$
|
17.74
|
|
|
$
|
16.81
|
|
|
Crack spreads (2/1/1)
(per barrel):
|
|
|
|
|
Gulf Coast high
sulfur diesel (10)
|
$
|
13.41
|
|
|
$
|
10.75
|
|
|
WTI Cushing crude oil
(per barrel)
|
$
|
48.48
|
|
|
$
|
98.65
|
|
|
Crude oil
differentials (per barrel):
|
|
|
|
|
WTI Cushing less WTI
Midland (11)
|
$
|
1.95
|
|
|
$
|
3.54
|
|
|
WTI Cushing less WTS
(11)
|
1.76
|
|
|
3.67
|
|
|
LLS less WTI Cushing
(11)
|
2.64
|
|
|
6.00
|
|
|
Brent less LLS
(11)
|
0.84
|
|
|
6.97
|
|
|
Brent less WTI
Cushing (11)
|
5.44
|
|
|
10.46
|
|
|
Product prices
(dollars per gallon):
|
|
|
|
|
Gulf Coast unleaded
gasoline
|
$
|
1.52
|
|
|
$
|
2.66
|
|
|
Gulf Coast ultra-low
sulfur diesel
|
1.69
|
|
|
2.93
|
|
|
Gulf Coast high
sulfur diesel
|
1.55
|
|
|
2.84
|
|
|
Natural gas (per
MMBtu)
|
2.81
|
|
|
4.72
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THROUGHPUT AND
PRODUCTION DATA:
BIG SPRING
REFINERY
|
For the Three
Months Ended
|
|
March
31,
|
|
2015
|
|
2014
|
|
bpd
|
|
%
|
|
bpd
|
|
%
|
|
Refinery
throughput:
|
|
|
|
|
|
|
|
|
WTS crude
|
44,865
|
|
|
62.0
|
|
|
35,345
|
|
|
48.2
|
|
|
WTI crude
|
24,137
|
|
|
33.4
|
|
|
35,982
|
|
|
49.1
|
|
|
Blendstocks
|
3,358
|
|
|
4.6
|
|
|
1,969
|
|
|
2.7
|
|
|
Total refinery
throughput (12)
|
72,360
|
|
|
100.0
|
|
|
73,296
|
|
|
100.0
|
|
|
Refinery
production:
|
|
|
|
|
|
|
|
|
Gasoline
|
36,192
|
|
|
49.7
|
|
|
36,290
|
|
|
49.6
|
|
|
Diesel/jet
|
26,086
|
|
|
35.9
|
|
|
24,674
|
|
|
33.6
|
|
|
Asphalt
|
3,278
|
|
|
4.5
|
|
|
3,406
|
|
|
4.6
|
|
|
Petrochemicals
|
4,810
|
|
|
6.6
|
|
|
4,412
|
|
|
6.0
|
|
|
Other
|
2,394
|
|
|
3.3
|
|
|
4,557
|
|
|
6.2
|
|
|
Total refinery
production (13)
|
72,760
|
|
|
100.0
|
|
|
73,339
|
|
|
100.0
|
|
|
Refinery utilization
(14)
|
|
|
94.5
|
%
|
|
|
|
101.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THROUGHPUT AND
PRODUCTION DATA:
KROTZ SPRINGS
REFINERY
|
For the Three
Months Ended
|
|
March
31,
|
|
2015
|
|
2014
|
|
bpd
|
|
%
|
|
bpd
|
|
%
|
|
Refinery
throughput:
|
|
|
|
|
|
|
|
|
WTI crude
|
30,353
|
|
|
41.7
|
|
|
24,040
|
|
|
38.7
|
|
|
Gulf Coast sweet
crude
|
37,038
|
|
|
50.8
|
|
|
35,710
|
|
|
57.6
|
|
|
Blendstocks
|
5,478
|
|
|
7.5
|
|
|
2,317
|
|
|
3.7
|
|
|
Total refinery
throughput (12)
|
72,869
|
|
|
100.0
|
|
|
62,067
|
|
|
100.0
|
|
|
Refinery
production:
|
|
|
|
|
|
|
|
|
Gasoline
|
34,527
|
|
|
46.3
|
|
|
30,888
|
|
|
48.9
|
|
|
Diesel/jet
|
30,690
|
|
|
41.2
|
|
|
25,873
|
|
|
41.0
|
|
|
Heavy Oils
|
1,334
|
|
|
1.8
|
|
|
594
|
|
|
0.9
|
|
|
Other
|
7,995
|
|
|
10.7
|
|
|
5,819
|
|
|
9.2
|
|
|
Total refinery
production (13)
|
74,546
|
|
|
100.0
|
|
|
63,174
|
|
|
100.0
|
|
|
Refinery utilization
(14)
|
|
|
91.1
|
%
|
|
|
|
80.7
|
%
|
|
|
|
|
|
|
|
|
|
|
ASPHALT
SEGMENT
|
|
|
|
|
For the Three
Months Ended
|
|
March
31,
|
|
2015
|
|
2014
|
|
(dollars in
thousands, except per ton data)
|
|
STATEMENT OF
OPERATIONS DATA:
|
|
|
|
|
Net sales
(15)
|
$
|
50,652
|
|
|
$
|
96,171
|
|
|
Operating costs and
expenses:
|
|
|
|
|
Cost of sales
(15)(16)
|
54,283
|
|
|
87,734
|
|
|
Direct operating
expenses
|
7,879
|
|
|
9,880
|
|
|
Selling, general and
administrative expenses
|
1,776
|
|
|
2,728
|
|
|
Depreciation and
amortization
|
1,145
|
|
|
1,200
|
|
|
Total operating costs
and expenses
|
65,083
|
|
|
101,542
|
|
|
Gain on disposition
of assets
|
—
|
|
|
2,166
|
|
|
Operating loss
(19)
|
$
|
(14,431)
|
|
|
$
|
(3,205)
|
|
|
KEY OPERATING
STATISTICS:
|
|
|
|
|
Blended asphalt sales
volume (tons in thousands) (17)
|
65
|
|
|
84
|
|
|
Non-blended asphalt
sales volume (tons in thousands) (18)
|
18
|
|
|
22
|
|
|
Blended asphalt sales
price per ton (17)
|
$
|
487.68
|
|
|
$
|
546.21
|
|
|
Non-blended asphalt
sales price per ton (18)
|
390.83
|
|
|
389.14
|
|
|
Asphalt margin per
ton (19)
|
84.76
|
|
|
79.59
|
|
|
Capital
expenditures
|
$
|
1,406
|
|
|
$
|
1,718
|
|
|
|
RETAIL
SEGMENT
|
|
|
|
|
For the Three
Months Ended
|
|
March
31,
|
|
2015
|
|
2014
|
|
(dollars in
thousands, except per gallon data)
|
|
STATEMENT OF
OPERATIONS DATA:
|
|
|
|
|
Net sales
(1)
|
$
|
175,985
|
|
|
$
|
221,248
|
|
|
Operating costs and
expenses:
|
|
|
|
|
Cost of sales
(16)
|
139,703
|
|
|
189,689
|
|
|
Selling, general and
administrative expenses
|
26,305
|
|
|
25,952
|
|
|
Depreciation and
amortization
|
3,037
|
|
|
2,714
|
|
|
Total operating costs
and expenses
|
169,045
|
|
|
218,355
|
|
|
Gain on disposition
of assets
|
50
|
|
|
40
|
|
|
Operating
income
|
$
|
6,990
|
|
|
$
|
2,933
|
|
|
KEY OPERATING
STATISTICS:
|
|
|
|
|
Number of stores (end
of period) (20)
|
293
|
|
|
296
|
|
|
Retail fuel sales
(thousands of gallons)
|
46,095
|
|
|
45,516
|
|
|
Retail fuel sales
(thousands of gallons per site per month) (20)
|
54
|
|
|
53
|
|
|
Retail fuel margin
(cents per gallon) (21)
|
23.6
|
|
|
18.3
|
|
|
Retail fuel sales
price (dollars per gallon) (22)
|
$
|
2.16
|
|
|
$
|
3.25
|
|
|
Merchandise
sales
|
$
|
76,102
|
|
|
$
|
73,335
|
|
|
Merchandise sales
(per site per month) (20)
|
$
|
87
|
|
|
$
|
83
|
|
|
Merchandise margin
(23)
|
33.2
|
%
|
|
31.5
|
%
|
|
Capital
expenditures
|
$
|
3,316
|
|
|
$
|
3,381
|
|
|
|
|
(1)
|
Includes excise taxes
on sales by the retail segment of $18,056 and $17,810 for the three
months ended March 31, 2015 and 2014, respectively.
|
|
|
|
(2)
|
Includes corporate
headquarters selling, general and administrative expenses of $176
and $175 for the three months ended March 31, 2015 and 2014,
respectively, which are not allocated to our three operating
segments.
|
|
|
|
(3)
|
Includes corporate
depreciation and amortization of $469 and $596 for the three months
ended March 31, 2015 and 2014, respectively, which are not
allocated to our three operating segments.
|
|
|
|
(4)
|
The following table
provides a reconciliation of net income available to stockholders
under United States generally accepted accounting principles
("GAAP") to adjusted net income available to stockholders utilized
in determining adjusted earnings per share, excluding after-tax
loss on an asphalt inventory adjustment, after-tax unrealized
(gains) losses on commodity swaps and after-tax gain on disposition
of assets. Adjusted net income available to stockholders is not a
recognized measurement under GAAP; however, the amounts included in
adjusted net income available to stockholders are derived from
amounts included in our consolidated financial statements. Our
management believes that the presentation of adjusted net income
available to stockholders and adjusted earnings 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,
|
|
|
|
2015
|
|
2014
|
|
|
|
(dollars in
thousands)
|
|
|
Net income available
to stockholders
|
$
|
26,939
|
|
|
$
|
785
|
|
|
|
Plus: Loss on asphalt
inventory adjustment, net of tax
|
7,739
|
|
|
—
|
|
|
|
Less: Unrealized
(gains) losses on commodity swaps, net of tax
|
(13,353)
|
|
|
5,119
|
|
|
|
Less: Gain on
disposition of assets, net of tax
|
(415)
|
|
|
(1,709)
|
|
|
|
Adjusted net income
available to stockholders
|
$
|
20,910
|
|
|
$
|
4,195
|
|
|
|
Adjusted earnings per
share *
|
$
|
0.30
|
|
|
$
|
0.06
|
|
|
|
|
|
|
|
*
|
Adjusted earnings per share includes the effects of
dividends on preferred stock on adjusted net income available to
stockholders necessary to calculate earnings per
share.
|
|
|
|
(5)
|
Adjusted EBITDA
represents earnings before net income attributable to
non-controlling interest, income tax expense, interest expense,
depreciation and amortization, gain 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 attributable
to non-controlling interest, income tax expense, interest expense,
gain 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 available to stockholders to Adjusted EBITDA
for the three months ended March 31, 2015 and 2014:
|
|
|
|
For the Three
Months Ended
|
|
|
|
March
31,
|
|
|
|
2015
|
|
2014
|
|
|
|
(dollars in
thousands)
|
|
|
Net income available
to stockholders
|
$
|
26,939
|
|
|
$
|
785
|
|
|
|
Net income
attributable to non-controlling interest
|
7,116
|
|
|
7,590
|
|
|
|
Income tax
expense
|
11,961
|
|
|
2,094
|
|
|
|
Interest
expense
|
21,037
|
|
|
28,015
|
|
|
|
Depreciation and
amortization
|
31,962
|
|
|
29,878
|
|
|
|
Gain on disposition
of assets
|
(572)
|
|
|
(2,205)
|
|
|
|
Unrealized (gains)
losses on commodity swaps
|
(18,403)
|
|
|
6,606
|
|
|
|
Adjusted
EBITDA
|
$
|
80,040
|
|
|
$
|
72,763
|
|
|
Adjusted EBITDA for
the three months ended March 31, 2015 does not exclude a loss of
$10,666 resulting from a price adjustment related to winter-fill
asphalt inventory.
|
|
|
|
(6)
|
Includes corporate
capital expenditures of $1,621 and $865 for the three months ended
March 31, 2015 and 2014, 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
substantial hedge positions and certain inventory 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, 2015 and 2014
excludes realized and unrealized gains (losses) on commodity swaps
of $29,843 and $(6,238), respectively. For the three months ended
March 31, 2015, $9,035 related substantially to inventory
adjustments was not included in cost of sales of either the Big
Spring refinery or 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 $11,918 and $41,728 for the three months
ended March 31, 2015 and 2014, 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 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 winter-fill asphalt
inventory. This loss is included in operating loss in the asphalt
segment.
|
|
|
|
(20)
|
At March 31, 2015 we
had 293 retail convenience stores of which 282 sold fuel. At March
31, 2014 we had 296 retail convenience stores of which 285 sold
fuel.
|
|
|
|
(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-2015-results-300079806.html
SOURCE Alon USA Energy,
Inc.