Market Snapshot
  • U.S.
  • Europe
  • Asia
Ticker Volume Price Price Delta
DJIA 16,408.54 -16.31 -0.10%
S&P 500 1,864.85 2.54 0.14%
NASDAQ 4,095.52 9.29 0.23%
Ticker Volume Price Price Delta
STOXX 50 3,155.81 16.55 0.53%
FTSE 100 6,625.25 41.08 0.62%
DAX 9,409.71 91.89 0.99%
Ticker Volume Price Price Delta
NIKKEI 14,516.27 98.74 0.68%
TOPIX 1,173.37 6.78 0.58%
HANG SENG 22,760.24 64.23 0.28%

Alon USA Reports Fourth Quarter and Full Year 2012 Results



          Alon USA Reports Fourth Quarter and Full Year 2012 Results

Company schedules conference call for March 7, 2013 at 11:30 a.m. Eastern

PR Newswire

DALLAS, March 6, 2013

DALLAS, March 6, 2013 /PRNewswire/ -- Alon USA Energy, Inc. (NYSE: ALJ)
("Alon") today announced results for the quarter and year ended December 31,
2012. Net income for the fourth quarter of 2012 was $22.2 million, or $0.35
per share, compared to net loss of $(12.9) million, or $(0.23) per share, for
the same period last year. Excluding special items, Alon recorded net income
of $36.1 million, or $0.58 per share, for the fourth quarter of 2012, compared
to net loss of $(43.7) million, or $(0.78) per share, for the same period last
year.

Net income for the year ended December 31, 2012 was $79.1 million, or $1.29
per share, compared to $42.5 million, or $0.77 per share, for the same period
last year. Excluding special items, Alon recorded net income of $127.4
million, or $2.13 per share, for the year ended December 31, 2012, compared to
$30.9 million, or $0.56 per share, for the prior year.

The net income discussed above includes the affects of net income (loss)
attributable to non-controlling interest.

                              For the Three Months Ended  For the Year Ended
                              December 31,                December 31,
                              2012           2011         2012       2011
                              (dollars in thousands)
Net income (loss)             $  30,892      $ (13,989)   $ 90,597   $ 43,748
Net income (loss)
attributable to               8,705          (1,076)      11,463     1,241
non-controlling interest
Net income (loss) available   $  22,187      $ (12,913)   $ 79,134   $ 42,507
to stockholders

Paul Eisman, President and CEO, commented, "In the fourth quarter we
successfully completed the initial public offering of Alon USA Partners, LP
(NYSE: ALDW). This transaction highlighted the value of the assets of Alon USA
Partners, LP; we sold approximately 18% of the units, and used the entire
proceeds to reduce debt. We are very pleased with our results in 2012 and are
especially satisfied that we were able to strengthen our balance sheet by
reducing total debt by $463 million, net debt by $422 million, and also
reducing net debt to total capitalization to 43%. During the fourth quarter,
we reduced total debt by $212 million and net debt by $282 million.

"We are also pleased with our operating results in the fourth quarter.
Adjusted EBITDA for the quarter was approximately $120 million despite being
negatively impacted by $30 million of realized losses on commodity swap hedge
positions. Our Adjusted EBITDA of $434 million for the year was negatively
impacted by $98 million of realized losses on commodity swap hedge positions.

"The positive margin environment that we saw during most of 2012 continued to
remain strong through the fourth quarter. During the quarter, we increased
throughput at our Big Spring and Krotz Springs refineries with each averaging
over 72,000 barrels per day. We generated very favorable operating margins of
$25.26 per barrel at our Big Spring refinery, benefiting from strong location
differentials at both Midland and Cushing. At Krotz Springs, we generated an
operating margin of $10.36 per barrel as we were able to take advantage of
cheaper WTI Midland priced crudes averaging over 30,000 barrels per day for
the fourth quarter and averaging over 20,000 barrels per day for the entire
year.

"We continue to evaluate alternatives to improve the short and long-term
profitability of our California refining operations. As discussed in our
November earnings release, with the end of the asphalt season we suspended our
California refining operations in November. As part of the suspension, we took
measures to reduce the operating costs at our California refineries. We are
currently purchasing asphalt to build inventories in preparation for the 2013
season. We are also conducting an engineering study at our Bakersfield
refinery location while we are in the permitting process that would allow us
to ship, via rail, lighter mid-continent crudes to replace the heavier West
Coast crudes currently used in the California system. We expect that the
lighter mid-continent crudes will enable us to increase light product yield
and significantly reduce asphalt yield.

"In the first quarter of 2013, we are performing maintenance at both the Big
Spring and Krotz Springs refineries. We expect the average throughput at the
Big Spring refinery to be approximately 60,000 barrels per day and
approximately 57,000 barrels per day at the Krotz Springs refinery. At Krotz
Springs, we expect to process approximately 28,000 barrels per day of WTI
priced crudes in the first quarter.

"For the full year of 2013, we expect the average throughput at the Big Spring
refinery to be approximately 68,000 barrels per day and approximately 69,000
barrels per day at the Krotz Springs refinery. At Krotz Springs, we expect to
process approximately 30,000 barrels per day of WTI priced crudes in 2013."

FOURTH QUARTER 2012

Special items reduced earnings by $14.0 million for the fourth quarter of 2012
which included after-tax losses of $11.6 million and $5.4 million associated
with the write-off of unamortized original issuance discount and debt issuance
costs recognized with the prepayment of Alon USA Energy, Inc. term loans,
respectively. These after-tax losses were offset by after-tax gains of $2.8
million associated with unrealized gains on commodity swaps and $0.3 million
associated with gains recognized on disposition of assets. Special items
increased earnings by $30.7 million for the fourth quarter of 2011 which
included after-tax gains of $21.6 million associated with unrealized gains on
commodity swaps, $8.8 million associated with heating oil call option crack
spread contracts and $0.4 million associated with gains recognized on
disposition of assets.

Also impacting earnings for the fourth quarter of 2012 was pre-tax realized
losses on commodity swaps of $29.8 million. There were no significant realized
losses on commodity swaps for the fourth quarter of 2011.

The combined average refinery throughput for the fourth quarter of 2012
averaged 154,410 barrels per day ("bpd"), consisting of 72,109 bpd at the Big
Spring refinery, 10,066 bpd at the California refineries and 72,235 bpd at the
Krotz Springs refinery, compared to a combined refinery average throughput of
150,996 bpd for the fourth quarter of 2011, consisting of 71,700 bpd at the
Big Spring refinery, 27,141 bpd at the California refineries and 52,155 bpd at
the Krotz Springs refinery where throughput was reduced from a planned
shutdown.

Refinery operating margin at the Big Spring refinery was $25.26 per barrel for
the fourth quarter of 2012 compared to $14.14 per barrel for the same period
in 2011. This increase is due to higher Gulf Coast 3/2/1 crack spreads and a
widening of the WTI to WTS spread. Refinery operating margin at the California
refineries was $6.50 per barrel for the fourth quarter of 2012, compared to
$(3.98) per barrel for the same period in 2011. This increase is due to higher
West Coast 3/1/1/1 crack spreads and higher light product yields. Refinery
operating margin at the Krotz Springs refinery was $10.36 per barrel for the
fourth quarter of 2012, compared to $(6.03) per barrel for the same period in
2011. This increase is mainly due to lower crude oil costs with the addition
of WTI priced crude oils and higher Gulf Coast 2/1/1 high sulfur diesel crack
spreads.

The average Gulf Coast 3/2/1 crack spread was $27.10 per barrel for the fourth
quarter of 2012 compared to $19.95 per barrel for the fourth quarter of 2011.
The average West Coast 3/1/1/1 crack spread for the fourth quarter of 2012 was
$13.80 per barrel compared to $3.58 per barrel for the fourth quarter of 2011.
The average Gulf Coast 2/1/1 high sulfur diesel crack spread for the fourth
quarter of 2012 was $9.03 per barrel compared to $(1.50) per barrel for the
fourth quarter of 2011.

The average WTI to WTS spread for the fourth quarter of 2012 was $9.55 per
barrel compared to $0.84 per barrel for the same period in 2011. The average
LLS to WTI spread for the fourth quarter of 2012 was $20.08 per barrel
compared to $23.32 per barrel for the same period in 2011. The average WTI to
Buena Vista spread for the fourth quarter of 2012 was $(15.97) per barrel
compared to $(19.80) per barrel for the same period in 2011.

Asphalt margins for the fourth quarter of 2012 were $26.84 per ton compared to
$65.83 per ton for the fourth quarter of 2011. On a cash basis, asphalt
margins in the fourth quarter of 2012 were $13.17 per ton compared to $22.41
per ton in the fourth quarter of 2011. This decrease was primarily due to
higher raw materials costs for the fourth quarter of 2012. The average blended
asphalt sales price increased 7.6% from $548.87 per ton in the fourth quarter
of 2011 to $590.79 per ton in the fourth quarter of 2012 and the average
non-blended asphalt sales price increased 15.6% from $300.50 per ton in the
fourth quarter of 2011 to $347.25 per ton in the fourth quarter of 2012.

Retail fuel sales volume increased 8.1% from 40.7 million gallons in the
fourth quarter of 2011 to 44.0 million gallons in the fourth quarter of 2012.
Merchandise sales increased 6.4% from $72.4 million in the fourth quarter of
2011 to $77.0 million in the fourth quarter of 2012.

In the fourth quarter of 2012, based on a change in our internal reporting
structure as a result of the Alon USA Partners, LP initial public offering,
the branded marketing operations have been combined with the refining and
marketing segment and are no longer included with the retail segment.
Information for the branded marketing operations for the full fourth quarter
and full year ended December 31, 2012 is included in the refining and
marketing segment. Prior period segment results have been changed to conform
with current period presentation.

YEAR-TO-DATE 2012

Special items reduced earnings by $48.3 million for 2012 which included
after-tax losses of $17.4 million associated with the write-off of unamortized
original issuance discounts associated with the prepayment of term loans, $5.4
million associated with the write-off of unamortized debt issuance costs,
$19.6 million associated with unrealized losses on commodity swaps, $4.4
million associated with heating oil call option crack spread contracts and
$1.4 million associated with losses on disposition of assets. Special items
increased earnings by $11.7 million for 2011 which included after-tax gains of
$21.6 million associated with unrealized gains on commodity swaps, $13.5
million associated with a reduction in system inventories and $0.5 million
associated with gains on disposition of assets offset by after-tax losses of
$23.9 million associated with heating oil call option crack spread contracts.

Also impacting earnings were pre-tax realized losses on commodity swaps of
$98.2 million in 2012 and $1.9 million in 2011.

The combined refinery average throughput for 2012 averaged 154,700 bpd,
consisting of 68,946 bpd at the Big Spring refinery, 17,877 bpd at the
California refineries and 67,877 bpd at the Krotz Springs refinery, compared
to a combined refinery average throughput 146,149 bpd in 2011, consisting of
63,614 bpd at the Big Spring refinery, 22,815 bpd at the California
refineries, and 59,720 bpd at the Krotz Springs refinery, where throughput was
reduced during the second quarter of 2011 due to flooding in Louisiana and the
impact on crude oil supply to the refinery.

Refinery operating margin at the Big Spring refinery was $23.50 per barrel for
2012 compared to $20.89 per barrel for 2011. This increase is due to higher
Gulf Coast 3/2/1 crack spreads and a widening of the WTI to WTS spread.
Refinery operating margin at the California refineries was $2.36 per barrel
for 2012 compared to $(1.31) per barrel for 2011. This increase reflects
higher West Coast 3/1/1/1 crack spreads. Refinery operating margin at the
Krotz Springs refinery was $8.30 per barrel for 2012 compared to $3.05 per
barrel for 2011. This increase is mainly due to lower crude oil costs with the
addition of WTI priced crude oils and higher Gulf Coast 2/1/1 high sulfur
diesel crack spreads.

The average Gulf Coast 3/2/1 crack spread for 2012 was $27.43 per barrel
compared to $23.37 per barrel for 2011. The average West Coast 3/1/1/1 crack
spread for 2012 was $13.08 per barrel compared to $9.20 per barrel for 2011.
The average Gulf Coast 2/1/1 high sulfur diesel crack spread for 2012 was
$11.29 per barrel compared to $7.00 per barrel for 2011.

The average WTI to WTS spread for 2012 was $5.46 per barrel compared to $2.06
per barrel for 2011. The average LLS to WTI spread for 2012 was $16.46 per
barrel compared to $16.76 per barrel for 2011. The average WTI to Buena Vista
spread for 2012 was $(14.48) per barrel compared to $(13.36) per barrel for
2011.

Asphalt margins in 2012 increased to $42.64 per ton compared to $26.99 per ton
in 2011. On a cash basis, asphalt margins in 2012 were $27.39 per ton compared
to $14.97 per ton in 2011. This increase was primarily due to asphalt sales
prices increasing more than crude oil costs. The average blended asphalt sales
price increased 8.9% from $541.44 per ton in 2011 to $589.63 per ton in 2012
and the average non-blended asphalt sales price increased 14.0% from $326.69
per ton in 2011 to $372.36 per ton in 2012.

Retail fuel sales volume increased by 9.0% from 156.7 million gallons in 2011
to 170.8 million gallons in 2012. Merchandise sales increased 5.7% from $298.2
million in 2011 to $315.1 million in 2012.

CONFERENCE CALL

The Company has scheduled a conference call for Thursday, March 7, 2013, at
11:30 a.m. Eastern, to discuss the fourth quarter 2012 results. To access the
call, please dial 877-941-9205, or 480-629-9771, 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 on the Alon corporate
website, http://www.alonusa.com, by logging onto that site and clicking
"Investors". A telephonic replay of the conference call will be available
through March 21, 2013, and may be accessed by calling 800-406-7325, or
303-590-3030, for international callers, and using the passcode 4593762#. A
web cast archive will also be available at http://www.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. The Company
directly owns crude oil refineries in California, Louisiana and Oregon, with
an aggregate crude oil throughput capacity of approximately 180,000 barrels
per day. Alon also 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 Texas with an aggregate crude oil throughput
capacity of approximately 70,000 barrels per day. Alon is a leading producer
of asphalt, which it markets through its asphalt terminals predominately in
the Western United States. Alon is the largest 7-Eleven licensee in the United
States and operates approximately 300 convenience stores in 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.

 

          Amir Barash, Vice President-IR

Contacts: Alon USA Energy, Inc.

          972-367-3808
          Investors: Jack Lascar/ Sheila Stuewe

          Dennard-Lascar Associates / 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, 2011, AND
INCOME STATEMENT
DATA FOR THE YEAR ENDED
DECEMBER 31, 2011,
IS UNAUDITED)
                          For the Three Months Ended  For the Year Ended
                          December 31,                December 31,
                          2012           2011         2012         2011
                          (dollars in thousands, except per share data)
STATEMENT OF OPERATIONS
DATA:
Net sales (1)             $  1,954,785   $ 1,882,869  $ 8,017,741  $ 7,186,257
Operating costs and
expenses:
Cost of sales             1,710,252      1,777,210    7,117,449    6,494,883
Unrealized (gains) losses (5,522)        (31,936)     31,936       (31,936)
on commodity swaps
Direct operating expenses 82,999         83,190       313,242      285,666
Selling, general and
administrative expenses   42,383         35,527       161,401      143,122
(2)
Depreciation and          28,929         33,684       121,929      113,730
amortization (3)
Total operating costs and 1,859,041      1,897,675    7,745,957    7,005,465
expenses
Gain (loss) on            529            568          (2,309)      729
disposition of assets
Operating income (loss)   96,273         (14,238)     269,475      181,521
Interest expense (4)      (51,459)       (24,530)     (129,572)    (88,310)
Equity earnings of        1,050          1,353        7,162        5,128
investees
Other income (loss), net  207            15,392       (6,584)      (35,673)
(5)
Income (loss) before
income tax expense        46,071         (22,023)     140,481      62,666
(benefit)
Income tax expense        15,179         (8,034)      49,884       18,918
(benefit)
Net income (loss)         30,892         (13,989)     90,597       43,748
Net income (loss)
attributable to           8,705          (1,076)      11,463       1,241
non-controlling interest
Net income (loss)         $  22,187      $ (12,913)   $ 79,134     $ 42,507
available to stockholders
Earnings (loss) per       $  0.35        $ (0.23)     $ 1.29       $ 0.77
share, basic
Weighted average shares
outstanding, basic (in    61,041         55,853       57,501       55,431
thousands)
Earnings (loss) per       $  0.33        $ (0.23)     $ 1.24       $ 0.69
share, diluted
Weighted average shares
outstanding, diluted (in  67,535         55,853       63,917       61,401
thousands)
Cash dividends per share  $  0.04        $ 0.04       $ 0.16       $ 0.16
CASH FLOW DATA:
Net cash provided by
(used in):
Operating activities      $  172,312     $ 11,198     $ 387,810    $ 69,560
Investing activities      (21,544)       (22,412)     (104,980)    (126,542)
Financing activities      (247,929)      (7,321)      (323,600)    142,361
OTHER DATA:
Adjusted net income
(loss) available          $  36,137      $ (43,656)   $ 127,392    $ 30,850
to stockholders (6)
Adjusted earnings (loss)  0.58           (0.78)       2.13         0.56
per share (6)
Adjusted EBITDA (7)       120,408        (11,126)     433,524      268,321
Capital expenditures (8)  21,628         21,505       93,901       112,625
Capital expenditures for
turnaround and chemical   23             2,739        11,460       9,734
catalyst

 

 

                                    December 31,  December 31,

                                    2012          2011
BALANCE SHEET DATA (end of period): (dollars in thousands)
Cash and cash equivalents           $   116,296   $   157,066
Working capital                     87,242        99,452
Total assets                        2,223,574     2,330,382
Total debt                          587,017       1,050,196
Total equity                        621,186       395,784

 

 

REFINING AND MARKETING SEGMENT (A)
                    For the Three Months Ended       For the Year Ended
                    December 31,                     December 31,
                    2012              2011           2012         2011
                    (dollars in thousands, except per barrel data and pricing
                    statistics)
STATEMENTS OF
OPERATIONS DATA:
Net sales (9)       $   1,719,183     $  1,749,514   $ 7,241,935  $ 6,558,625
Operating costs and
expenses:
Cost of sales       1,514,298         1,692,054      6,519,547    6,028,709
Unrealized (gains)
losses on commodity (5,522)           (31,936)       31,936       (31,936)
swaps
Direct operating    74,724            72,804         278,725      243,018
expenses
Selling, general
and administrative  14,204            8,758          51,215       39,190
expenses
Depreciation and    24,754            24,620         103,638      90,701
amortization
Total operating     1,622,458         1,766,300      6,985,061    6,369,682
costs and expenses
Gain (loss) on
disposition of      26                —              (2,502)      12
assets
Operating income    $   96,751        $  (16,786)    $ 254,372    $ 188,955
(loss)
KEY OPERATING
STATISTICS:
Per barrel of
throughput:
Refinery operating
margin – Big Spring $   25.26         $  14.14       $ 23.50      $ 20.89
(10)
Refinery operating
margin – CA         6.50              (3.98)         2.36         (1.31)
Refineries (10)
Refinery operating
margin – Krotz      10.36             (6.03)         8.30         3.05
Springs (10)
Refinery direct
operating expense – 4.17              3.80           4.00         4.23
Big Spring (11)
Refinery direct
operating expense – 23.23             10.15          12.59        7.32
CA Refineries (11)
Refinery direct
operating expense – 3.84              4.56           3.85         3.67
Krotz Springs (11)
Capital             $   13,551        $  15,231      $ 68,112     $ 92,022
expenditures
Capital
expenditures for    23                2,739          11,460       9,734
turnaround and
chemical catalyst
PRICING STATISTICS:
WTI crude oil (per  $   88.10         $  94.03       $ 94.14      $ 95.07
barrel)
WTS crude oil (per  78.55             93.19          88.68        93.01
barrel)
Buena Vista crude   104.07            113.83         108.62       108.43
oil (per barrel)
LLS crude oil (per  110.69            112.41         111.53       110.98
barrel)
Crack spreads
(3/2/1) (per
barrel):
Gulf Coast (12)     $   27.10         $  19.95       $ 27.43      $ 23.37
Crack spreads
(3/1/1/1) (per
barrel):
West Coast (12)     $   13.80         $  3.58        $ 13.08      $ 9.20
Crack spreads
(2/1/1) (per
barrel):
Gulf Coast high     $   9.03          $  (1.50)      $ 11.29      $ 7.00
sulfur diesel (12)
Crude oil
differentials (per
barrel):
WTI less WTS (13)   $   9.55          $  0.84        $ 5.46       $ 2.06
WTI less Buena      (15.97)           (19.80)        (14.48)      (13.36)
Vista (13)
LLS less WTI (13)   20.08             23.32          16.46        16.76
Product prices
(dollars per
gallon):
Gulf Coast unleaded $   2.60          $  2.59        $ 2.82       $ 2.75
gasoline
Gulf Coast
ultra-low sulfur    3.04              2.96           3.05         2.97
diesel
Gulf Coast high     2.99              2.93           2.99         2.91
sulfur diesel
West Coast LA
CARBOB (unleaded    2.86              2.80           3.03         2.89
gasoline)
West Coast LA
ultra-low sulfur    3.09              3.06           3.11         3.05
diesel
Natural gas (per    3.54              3.48           2.83         4.03
MMBTU)

    In the fourth quarter of 2012, based on a change in our internal reporting
    structure as a result of the Alon USA Partners, LP initial public
    offering, the branded marketing operations have been combined with the
(A) refining and marketing segment and are no longer included with the retail
    segment. Information for the branded marketing operations for the full
    fourth quarter and full year ended December 31, 2012 is included in the
    refining and marketing segment. Prior period segment results have been
    changed to conform with current period presentation.

______________________________________________

THROUGHPUT AND
PRODUCTION     For the Three Months Ended          For the Year Ended
DATA:

BIG SPRING     December 31,                        December 31,
REFINERY
               2012              2011              2012              2011
               bpd      %        bpd      %        bpd      %        bpd      %
Refinery
throughput:
WTS crude      48,894   67.8     57,335   80.0     52,190   75.7     51,202   80.4
WTI crude      19,180   26.6     11,306   15.8     14,396   20.9     10,023   15.8
Blendstocks    4,035    5.6      3,059    4.2      2,360    3.4      2,389    3.8
Total refinery
throughput     72,109   100.0    71,700   100.0    68,946   100.0    63,614   100.0
(14)
Refinery
production:
Gasoline       37,572   52.3     37,443   52.1     34,637   50.3     31,105   49.1
Diesel/jet     22,612   31.4     23,035   32.0     22,329   32.5     20,544   32.3
Asphalt        3,615    5.0      4,638    6.4      4,084    5.9      4,539    7.1
Petrochemicals 4,199    5.8      4,354    6.1      4,054    5.9      3,837    6.0
Other          3,939    5.5      2,452    3.4      3,706    5.4      3,488    5.5
Total refinery
production     71,937   100.0    71,922   100.0    68,810   100.0    63,513   100.0
(15)
Refinery
utilization             97.2  %           98.1  %           97.3  %           90.8  %
(16)
THROUGHPUT AND
PRODUCTION     For the Three Months Ended          For the Year Ended
DATA:
CALIFORNIA     December 31,                        December 31,
REFINERIES
               2012              2011              2012              2011
               bpd      %        bpd      %        bpd      %        bpd      %
Refinery
throughput:
Medium sour    6,592    65.5     8,778    32.4     9,071    50.7     5,677    24.9
crude
Heavy crude    1,423    14.1     15,720   57.9     8,038    45.0     14,962   65.6
Blendstocks    2,051    20.4     2,643    9.7      768      4.3      2,176    9.5
Total refinery
throughput     10,066   100.0    27,141   100.0    17,877   100.0    22,815   100.0
(14)
Refinery
production:
Gasoline       3,152    30.3     6,350    23.8     3,716    20.8     4,969    22.0
Diesel/jet     4,096    39.4     10,601   39.6     6,503    36.4     7,938    35.1
Asphalt        630      6.1      7,154    26.8     4,580    25.6     6,632    29.4
Heavy          2,333    22.4     1,790    6.7      2,603    14.6     2,292    10.2
unfinished
Other          186      1.8      816      3.1      462      2.6      735      3.3
Total refinery
production     10,397   100.0    26,711   100.0    17,864   100.0    22,566   100.0
(15)
Refinery
utilization             11.1  %           33.8  %           23.6  %           28.5  %
(16)

THROUGHPUT
AND         For the Three Months Ended          For the Year Ended
PRODUCTION
DATA:
KROTZ
SPRINGS     December 31,                        December 31,
REFINERY
            2012              2011              2012              2011
            bpd      %        bpd      %        bpd      %        bpd      %
Refinery
throughput:
WTI crude   30,449   42.2     —        —        20,111   29.6     —        —
Gulf Coast  39,605   54.8     51,728   99.2     46,924   69.2     58,979   98.8
sweet crude
Blendstocks 2,181    3.0      427      0.8      842      1.2      741      1.2
Total
refinery    72,235   100.0    52,155   100.0    67,877   100.0    59,720   100.0
throughput
(14)
Refinery
production:
Gasoline    34,775   47.3     21,733   41.0     29,081   42.4     24,852   41.4
Diesel/jet  29,688   40.4     23,515   44.3     28,466   41.4     27,436   45.6
Heavy Oils  2,624    3.6      3,873    7.3      2,709    3.9      2,904    4.8
Other       6,384    8.7      3,930    7.4      8,464    12.3     4,914    8.2
Total
refinery    73,471   100.0    53,051   100.0    68,720   100.0    60,106   100.0
production
(15)
Refinery
utilization          84.3  %           70.7  %           80.7  %           77.9  %
(16)

 

 

ASPHALT SEGMENT
                             For the Three Months Ended  For the Year Ended
                             December 31,                December 31,
                             2012           2011         2012       2011
                             (dollars in thousands, except per ton data)
STATEMENTS OF OPERATIONS
DATA:
Net sales                    $   154,454    $  119,414   $ 603,896  $ 554,549
Operating costs and
expenses:
Cost of sales (17)           149,193        103,484      563,516    524,964
Direct operating expenses    8,275          10,386       34,517     42,648
Selling, general and         1,042          1,247        4,230      5,080
administrative expenses
Depreciation and             1,585          1,377        5,866      6,376
amortization
Total operating costs and    160,095        116,494      608,129    579,068
expenses
Gain on disposition of       504            —            505        —
assets
Operating income (loss)      $   (5,137)    $  2,920     $ (3,728)  $ (24,519)
KEY OPERATING STATISTICS:
Blended asphalt sales volume 168            188          842        915
(tons in thousands) (18)
Non-blended asphalt sales
volume (tons in thousands)   28             54           105        181
(19)
Blended asphalt sales price  $   590.79     $  548.87    $ 589.63   $ 541.44
per ton (18)
Non-blended asphalt sales    347.25         300.50       372.36     326.69
price per ton (19)
Asphalt margin per ton (20)  26.84          65.83        42.64      26.99
Capital expenditures         $   885        $  1,767     $ 9,420    $ 3,225

RETAIL SEGMENT (A)
                          For the Three Months Ended  For the Year Ended
                          December 31,                December 31,
                          2012           2011         2012         2011
                          (dollars in thousands, except per gallon data)
STATEMENTS OF OPERATIONS
DATA:
Net sales (1)             $  224,604     $ 204,644    $ 907,918    $ 833,470
Operating costs and
expenses:
Cost of sales (17)        190,217        172,375      770,394      701,597
Selling, general and      26,761         25,334       104,996      98,100
administrative expenses
Depreciation and          2,251          6,973        10,298       14,728
amortization (3)
Total operating costs and 219,229        204,682      885,688      814,425
expenses
Gain (loss) on            (1)            568          (312)        717
disposition of assets
Operating income          $  5,374       $ 530        $ 21,918     $ 19,762
KEY OPERATING STATISTICS:
Number of stores (end of  298            302          298          302
period) (21)
Retail fuel sales         44,003         40,731       170,848      156,662
(thousands of gallons)
Retail fuel sales
(thousands of gallons per 51             47           50           45
site per month) (21)
Retail fuel margin (cents 20.6           22.0         20.2         21.4
per gallon) (22)
Retail fuel sales price   $  3.35        $ 3.24       $ 3.47       $ 3.41
(dollars per gallon) (23)
Merchandise sales         $  77,020      $ 72,421     $ 315,082    $ 298,233
Merchandise sales (per    $  86          $ 80         $ 88         $ 82
site per month) (21)
Merchandise margin (24)   32.7        %  32.0      %  32.5      %  32.8      %
Capital expenditures      $  6,231       $ 4,239      $ 14,141     $ 15,838

    In the fourth quarter of 2012, based on a change in our internal reporting
    structure as a result of the Alon USA Partners, LP initial public
    offering, the branded marketing operations have been combined with the
(A) refining and marketing segment and are no longer included with the retail
    segment. Information for the branded marketing operations for the full
    fourth quarter and full year ended December 31, 2012 is included in the
    refining and marketing segment. Prior period segment results have been
    changed to conform with current period presentation.

______________________________________________

    Includes excise taxes on sales by the retail segment of $17,082 and
(1) $15,799 for the three months ended December 31, 2012 and 2011,
    respectively, and $66,563 and $60,686 for the years ended December 31,
    2012 and 2011, respectively.
    Includes corporate headquarters selling, general and administrative
    expenses of $376 and $188 for the three months ended December 31, 2012 and
(2) 2011, respectively, and $960 and $752 for the years ended December 31,
    2012 and 2011, respectively, which are not allocated to our three
    operating segments.
    Includes corporate depreciation and amortization of $339 and $714 for the
    three months ended December 31, 2012 and 2011, respectively, and $2,127
    and $1,925 for the years ended December 31, 2012 and 2011, respectively,
(3) which are not allocated to our three operating segments. In the retail
    segment for the three months and year ended December 31, 2011,
    depreciation and amortization includes $4,625 for the write-off of
    deferred costs.
    Interest expense for the year ended December 31, 2012 includes a charge of
    $9,624 for the write-off of unamortized original issuance discount
(4) associated with our repayment of the Alon Brands Term Loan and charges of
    $18,750 and $8,826 for the write-off of unamortized original issuance
    discount and debt issuance costs associated with the repayment of Alon USA
    Energy, Inc. term loans, respectively.
    Other income (loss), net for the year ended December 31, 2012 and for the
(5) three months and year ended December 31, 2011 is substantially the gain
    (loss) on heating oil call option crack spread contracts.
    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 the after-tax loss on write-off of unamortized debt issuance
    costs, after-tax loss on write-off of unamortized original issuance
(6) discount, after-tax (gain) loss on heating oil call option crack spread
    contracts, after-tax unrealized (gains) losses on commodity swaps,
    after-tax gain from reduction in system inventories and after-tax (gain)
    loss on disposition of assets. 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        For the Year Ended
                       December 31,                      December 31,
                       2012             2011             2012         2011
                       (dollars in thousands)
Net income (loss)
available to           $    22,187      $   (12,913)     $  79,134    $ 42,507
stockholders
Plus: Write-off of
unamortized debt       5,416            —                5,416        —
issuance costs, net of
tax
Plus: Write-off of
unamortized original   11,632           —                17,413       —
issuance discount, net
of tax
Plus: (Gain) loss on
heating oil call       —                (8,803)          4,413        23,894
option crack spread
contracts, net of tax
Plus: Unrealized
(gains) losses on      (2,817)          (21,563)         19,599       (21,563)
commodity swaps, net
of tax
Less: Gain from
reduction in system    —                —                —            (13,508)
inventories, net of
tax
Less: (Gain) loss on
disposition of assets, (281)            (377)            1,417        (480)
net of tax
Adjusted net income
(loss) available to    $    36,137      $   (43,656)     $  127,392   $ 30,850
stockholders
Adjusted earnings      $    0.58        $   (0.78)       $  2.13      $ 0.56
(loss) per share*
 * 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 (loss) per share.

    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, unrealized gains (losses) on commodity swaps and gain (loss) on
    heating oil call option crack spread contracts. 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
(7) 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 gain (loss) on heating
    oil call option crack spread contracts 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 and years ended December 31, 2012 and
2011, respectively:
                      For the Three Months Ended        For the Year Ended
                      December 31,                      December 31,
                      2012             2011             2012         2011
                      (dollars in thousands)
Net income (loss)
available to          $   22,187       $   (12,913)     $  79,134    $ 42,507
stockholders
Net income (loss)
attributable to       8,705            (1,076)          11,463       1,241
non-controlling
interest
Income tax expense    15,179           (8,034)          49,884       18,918
(benefit)
Interest expense      51,459           24,530           129,572      88,310
Depreciation and      28,929           33,684           121,929      113,730
amortization
(Gain) loss on        (529)            (568)            2,309        (729)
disposition of assets
Unrealized (gains)
losses on commodity   (5,522)          (31,936)         31,936       (31,936)
swaps
(Gain) loss on
heating oil call      —                (14,813)         7,297        36,280
option crack spread
contracts
Adjusted EBITDA       $   120,408      $   (11,126)     $  433,524   $ 268,321

 

     Includes corporate capital expenditures of $961 and $268 for the three
(8)  months ended December 31, 2012 and 2011, respectively, and $2,228 and
     $1,540 for the years ended December 31, 2012 and 2011, respectively,
     which are not allocated to our three operating segments.
     Net sales include intersegment sales to our asphalt and retail segments
(9)  at prices which approximate wholesale market prices. These intersegment
     sales are eliminated through consolidation of our financial statements.
     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.

      
(10)
     The refinery operating margin excludes realized losses on commodity swaps
     of $29,774 and $84,084 for the three months and year ended December 31,
     2012, respectively.

      

     The refinery operating margins for the three months and year ended
     December 31, 2012 excludes approximately $8,000 primarily from negative
     inventory effects. The refinery operating margins for the three months
     and year ended December 31, 2011 excludes approximately $3,000 primarily
     from positive inventory effects and approximately $10,000 primarily from
     negative inventory effects, respectively.
     Refinery direct operating expense is a per barrel measurement calculated
     by dividing direct operating expenses at our Big Spring, California, and
     Krotz Springs refineries by the applicable refinery's total throughput
(11) volumes. Direct operating expenses related to the period prior to the
     start-up of the Bakersfield refinery of $3,356 for the year ended
     December 31, 2011 have been excluded from the per barrel measurement
     calculation.
     We compare our Big Spring refinery's per barrel operating margin to the
     Gulf Coast 3/2/1 crack spread. A 3/2/1 crack spread is calculated
     assuming that three barrels of a benchmark crude oil are converted, or
     cracked, into two barrels of gasoline and one barrel of diesel. We
     calculate the Gulf Coast 3/2/1 crack spread using the market value of
     WTI, a light, sweet crude oil, the market values of Gulf Coast
     conventional gasoline and ultra-low sulfur diesel.

      

     We compare our California refineries' per barrel operating margin to the
     West Coast 3/1/1/1 crack spread. A 3/1/1/1 crack spread is calculated
     assuming that three barrels of a benchmark crude oil are converted into
(12) one barrel of gasoline, one barrel of diesel and one barrel of fuel oil.
     We calculate the West Coast 3/1/1/1 crack spread using the market value
     of Buena Vista crude oil, the market values of West Coast LA CARBOB
     pipeline gasoline, LA ultra-low sulfur pipeline diesel and LA 380
     pipeline CST (fuel oil).

      

     We compare our Krotz Springs refinery's per barrel operating margin to
     the Gulf Coast 2/1/1 crack spread. A 2/1/1 crack spread is calculated
     assuming that two barrels of a benchmark crude oil are converted into one
     barrel of gasoline and one barrel of diesel. We calculate the Gulf Coast
     2/1/1 crack spread using the market value of Light Louisiana Sweet, or
     LLS, crude oil, the market values of Gulf Coast conventional gasoline and
     Gulf Coast high sulfur diesel.
     The WTI/WTS, or sweet/sour, spread represents the differential between
     the average value per barrel of WTI crude oil and the average value per
     barrel of WTS crude oil. The WTI less Buena Vista spread represents the
(13) differential between the average value per barrel of WTI crude oil and
     the average value per barrel of Buena Vista crude oil. The LLS less WTI
     spread represents the differential between the average value per barrel
     of LLS crude oil and the average value per barrel of WTI crude oil.
     Total refinery throughput represents the total barrels per day of crude
     oil and blendstock inputs in the refinery production process. The
     throughput data of the California refineries for the years ended December
     31, 2012 and 2011, reflects substantially eight months of throughput as
(14) the California refineries were not in operation for the first quarter
     2012 and 2011 or December 2012 and 2011. The throughput data of the Krotz
     Springs refinery for the year ended December 31, 2011, reflects
     approximately a one month shutdown due to flooding in Louisiana and the
     impact on crude supply to the refinery and a two week shutdown in
     November for the tie-in of capital projects work.
     Total refinery production represents the barrels per day of various
(15) products produced from processing crude and other refinery feedstocks
     through the crude units and other conversion units at the refineries.
     Refinery utilization represents average daily crude oil throughput
(16) divided by crude oil capacity, excluding planned periods of downtime for
     maintenance and turnarounds.
     Cost of sales includes intersegment purchases of asphalt blends and motor
(17) 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.
(18) Blended asphalt represents base asphalt that has been blended with other
     materials necessary to sell the asphalt as a finished product.
(19) Non-blended asphalt represents base material asphalt and other components
     that require additional blending before being sold as a finished product.
     Asphalt margin is a per ton measurement calculated by dividing the margin
(20) 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.
     At December 31, 2012, we had 298 convenience stores of which 286 sold
(21) fuel. At December 31, 2011, we had 302 convenience stores of which 290
     sold fuel.
     Retail fuel margin represents the difference between motor fuel sales
     revenue and the net cost of purchased motor fuel, including
(22) transportation costs and associated motor fuel taxes, expressed on a
     cents-per-gallon basis. Motor fuel margins are frequently used in the
     retail industry to measure operating results related to motor fuel sales.
(23) Retail fuel sales price per gallon represents the average sales price for
     motor fuels sold through our retail convenience stores.
     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.

(24)  

     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.

 

 

 

SOURCE Alon USA Energy, Inc.

Website: http://www.alonusa.com
Sponsored Links
Advertisement
Advertisements
Sponsored Links
Advertisement