Alon Retail Ops Maintain the Status Quo

DALLAS — Alon USA Energy Inc.’s retail division came close to replicating nearly every sales and profit figure when comparing the recently concluded 2014 fiscal third quarter to the same time period last year. Net sales, operating income, fuel sales and merchandise sales largely maintained the status quo year over year. 

Net sales came in at $249 million, just $2 million lower than last year. Operating income dropped $400,000 to $6.85 million.

Retail fuel sales reached $48.5 million, just $800,000 less than last year, while fuel gallons sold per store per month were 57,000, just 1,000 less than last year.

Merchandise sales reached $84.8 million during Alon’s latest quarter ended Sept. 30, a $1.2-million rise year over year. Merchandise sales per site per month also rose a similar $1 million to $95 million.

Even the number of stores operated nearly stayed the same. 7-Eleven Inc.’s largest U.S. licensee operated 296 stores, primarily under the ALON banner, as of Sept. 30, one less than on the same day in 2013.

Despite the large number of year-over-year similarities at Dallas-based Alon’s retail division, there were a couple of differences. Most notably, merchandise margins dipped 1.3 percent to 31.2 percent. Also, retail capital expenditures rose $1.5 million to $5.8 million in Alon’s latest quarter.

Alon President and CEO Paul Eisman elected not to discuss the company’s retail division during Friday’s earnings call, nor was he asked by Wall Street analysts on the call about these operations. However, Eisman did discuss companywide earnings in detail, which unlike its retail division, certainly did not maintain the status quo.

Overall, Alon reported a net profit of $38.5 million vs. a net loss of $28.7 million during the same quarter last year.

“Our third-quarter results reflect excellent operational performance at both our Big Spring and Krotz Springs refineries,” said Eisman. “This resulted in a record total refinery throughput of 74,800 barrels per day at out Big Spring refinery and a record total refinery throughput of 76,900 barrels per day at our Krotz Springs refinery.”