Alon USA Partners, LP

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Alon USA Partners, LP Declares Quarterly Cash Distribution

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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

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/alon-usa-partners-lp-declares-quarterly-cash-distribution-300405406.html

SOURCE Alon USA Partners, LP