Alon Partners Declares Cash Distribution

Apr 30, 2013, 16:36 ET from Alon USA Partners, LP

DALLAS, April 30, 2013 /PRNewswire/ -- Alon USA Partners, LP (NYSE: ALDW) ("Alon Partners") today announced that the Board of Directors of Alon USA Partners GP, LLC, the general partner of Alon Partners, declared a distribution of $1.48 per unit payable in cash on May 15, 2013 to common unitholders of record at the close of business on May 10, 2013. Cash available for distribution for the three months ended March 31, 2013 totaled $92.8 million.

This release serves as qualified notice to nominees under Treasury Regulation Section 1.1446-4(b). Please note that 100% of Alon Partners' distributions to foreign investors are attributable to income that is effectively connected with a United States trade or business. Accordingly, all of Alon Partners' distributions to foreign investors are subject to federal income tax withholding at the highest effective tax rate for individuals or corporations, as applicable. Nominees, and not Alon Partners, are treated as the withholding agents responsible for withholding on the distributions received by them on behalf of foreign investors.

Alon USA Partners, LP is a Delaware limited partnership formed in August 2012 by Alon USA Energy, Inc. ("Alon Energy") (NYSE: ALJ). Alon Partners owns and operates a crude oil refinery in Big Spring, Texas with total throughput capacity of approximately 70,000 barrels per day. Alon Partners refines crude oil into finished products, which is marketed primarily in West Texas, Central Texas, Oklahoma, New Mexico and Arizona through its wholesale distribution network to both Alon Energy's retail convenience stores and other third-party distributors.


The preliminary financial results for the three months ended March 31, 2013 presented below, and utilized for the determination of cash available for distribution, are forward-looking statements based on preliminary estimates. These results reflect the best judgment of our management but involve a number of risks and uncertainties which could cause actual results to differ materially from those set forth in our estimates and from past results or performance. Such preliminary results are subject to finalization of our financial closing process for the three months ended March 31, 2013. Consequently, there can be no assurances that the preliminary estimates set forth below will be the actual financial results for the three months ended March 31, 2013, and any variation between the estimates and our actual results set forth below may be material.

ALON USA PARTNERS, LP

CASH AVAILABLE FOR DISTRIBUTION

(unaudited)

(dollars in thousands, except per unit data)

Three Months Ended

 March 31, 2013

Net sales

$

804,167

Operating costs and expenses:

Cost of sales

650,203

Direct operating expenses

30,422

Selling, general and administrative expenses

7,665

Depreciation and amortization

12,064

Total operating costs and expenses

700,354

Operating income

103,813

Interest expense

(9,392)

Other income, net

4

Income before state income tax expense

94,425

State income tax expense

900

Net income

93,525

Adjustments to reconcile net income to Adjusted EBITDA:

Interest expense

9,392

State income tax expense

900

Depreciation and amortization

12,064

Adjusted EBITDA

115,881

Adjustments to reconcile Adjusted EBITDA to cash available for distribution before special expenses:

less: Maintenance/growth capital expenditures

2,941

less: Turnaround and catalyst replacement capital expenditures

3,778

less: Major turnaround reserve

1,150

less: Principal payments

625

less: State income tax expense

900

less: Interest paid in cash

9,616

Cash available for distribution before special expenses

96,871

less: Special turnaround reserve

4,104

Cash available for distribution

$

92,767

Common units outstanding (in 000's)

62,501

Cash available for distribution per unit

$

1.48

 


Non-GAAP Financial Measure

Adjusted EBITDA represents earnings before state income tax expense, interest expense, depreciation and amortization and gain on disposition of assets. 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 state income tax expense, interest expense, gain on disposition of assets 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 changes in or cash requirements for our working capital needs; and
  • Our calculation of Adjusted EBITDA may differ from Adjusted 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.

Contacts:

Claire Hart, Senior Vice President

Alon USA Partners GP, LLC 972-367-3649

Investors: Jack Lascar/ Sheila Stuewe

Dennard Lascar Assoicates, LLC 713-529-6600 Media: Blake Lewis

Lewis Public Relations

214-635-3020

Ruth Sheetrit

SMG Public Relations

011-972-547-555551

SOURCE Alon USA Partners, LP