ALON USA ENERGY, INC. DALLAS, Feb. 9, 2017 /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 $0.11 per unit payable in cash on February 28, 2017 to common unitholders of record at the close of business on February 21, 2017. Cash available for distribution for the three months ended December 31, 2016 totaled $7.0 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 withholdings 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. (NYSE: ALJ) ("Alon Energy"). Alon Partners owns and operates a crude oil refinery in Big Spring, Texas, with a crude oil throughput capacity of 73,000 barrels per day. Alon Partners refines crude oil into finished products, which are marketed primarily in Central and West Texas, Oklahoma, New Mexico and Arizona through its integrated 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 December 31, 2016 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 December 31, 2016. Consequently, there can be no assurances that the preliminary estimates set forth below will be the actual financial results for the three months ended December 31, 2016, 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)
For the Three Months
Ended
December 31, 2016
-----------------
Net sales $509,009
Operating costs and expenses:
Cost of sales 453,944
Direct operating expenses 23,914
Selling, general and administrative
expenses 7,719
Depreciation and amortization 14,070
------
Total operating costs and expenses 499,647
Operating income 9,362
Interest expense (8,477)
Other income, net 43
---
Income before state income tax
expense 928
State income tax expense 44
---
Net income $884
Adjustments to reconcile net income
to Adjusted EBITDA:
Interest expense 8,477
State income tax expense 44
Depreciation and amortization 14,070
Adjusted EBITDA $23,475
Adjustments to reconcile Adjusted
EBITDA to cash available for
distribution:
less: Maintenance/growth capital
expenditures 6,388
less: Turnaround and catalyst
replacement capital expenditures 85
less: Major turnaround reserve for
future years 1,500
less: Principal payments 625
less: State income tax payments 44
less: Interest paid in cash 7,842
Cash available for distribution $6,991
======
Common units outstanding (in 000's) 62,520
Cash available for distribution per
unit $0.11
=====
Non-GAAP Financial Measure
Adjusted EBITDA represents earnings before state income tax expense, interest expense and depreciation and amortization. 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 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: Stacey Morris, Investor
Relations Manager
Alon USA Partners GP, LLC
972-367-3808
Investors: Jack Lascar
Dennard § Lascar Associates,
LLC
713-529-6600
Media: Blake Lewis
Lewis Public Relations
214-635-3020
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SOURCE Alon USA Partners, LP
