Net loss for the nine months ended Sept. 30, 2009, [image-nocss] was $24.5 million, or a loss of 52 cents per share, compared to net income of $21.9 million, or a gain of 47 cents per share, for the nine months ended Sept. 30, 2008.
Jeff Morris, Alon's president and CEO, said, "We are very satisfied with the improvement in the operating performance of our retail and branded marketing segment during the third quarter of 2009. Adjusted EBITDA...for the retail and branded marketing segment was approximately $8 million for the third quarter of 2009.
In its retail and branded marketing segment, retail fuel sales gallons increased by 29.9% from 23.8 million gallons in third-quarter 2008 to 30.9 million gallons in third-quarter 2009. Its integrated branded fuel sales increased by 18% from 54.7 million gallons in third-quarter 2008 to 64.7 million gallons in third-quarter 2009.
Special items for the first nine months of 2009 included an after-tax loss of $1.3 million recognized on disposition of assets.
In its retail and branded marketing segment, retail fuel sales gallons increased by 22.1% from 73.1 million gallons in the first nine months of 2008 to 89.3 million gallons in the first nine months of 2009. Integrated branded fuel sales increased by 19% from 163.8 million gallons in the first nine months of 2008 to 195 million gallons in the first nine months of 2009.
Alon USA, Dallas, is an independent refiner and marketer of petroleum products operating primarily in the Southcentral, Southwest and West United States. It owns four crude oil refineries in Texas, California, Louisiana and Oregon, with an aggregate crude oil throughput capacity of approximately 250,000 barrels per day. It markets gasoline and diesel products under the FINA brand. Alon USA also operates more than 300 convenience stores primarily in West Texas and New Mexico substantially under the 7-Eleven and FINA brands and supplies motor fuels to these stores primarily from its Big Spring, Texas, refinery. Also, it markets under the FINA branded name to approximately 700 additional locations.
Separately, Brentwood, Tenn.-based Delek US Holdings Inc., a diversified energy company with assets in the petroleum refining, marketing and retail industries, has also announced third-quarter 2009 financial results. For the three months ended Sept. 30, 2009, Delek US reported a net loss from continuing operations of $5.1 million, or a loss of 10 cents per basic share, versus net income from continuing operations of $24.4 million, or a gain of 45 cents per diluted share, in third-quarter 2008.
Uzi Yemin, president and CEO of Delek US, said, "Performance in our retail segment has improved in recent quarters, supported by increasingly stable business conditions in our core Southeastern markets. In the third quarter 2009, same-store fuel gallons sold and merchandise sales were higher when compared to the prior year period."
Refining contribution margin was $8.4 million in third-quarter 2009, compared to $29.6 million in third-quarter 2008.
Retail segment contribution margin declined to $16.7 million in third-quarter 2009, compared to $21.5 million in third-quarter 2008. The year-over-year decline in third-quarter contribution margin was primarily attributable to lower retail fuel margins when compared to the prior year period.
The third-quarter 2009 signaled a continued improvement in same-store operational metrics. Same-store fuel gallons sold and same-store merchandise sales increased in the third quarter 2009, following more than a year of negative same-store comparisons. Same-store metrics have improved due primarily to a combination of lower fuel prices, improving consumer confidence and perceived stabilization in employment conditions in the company's core Tennessee and Georgia markets.
Same-store gallons sold increased 2.2% in third-quarter 2009, when compared to third-quarter 2008. The retail segment sold a total of 102.4 million gallons during the three months ended Sept. 30, 2009, versus 100.9 million gallons in the prior year period.
Third-quarter 2009 retail margin was 17.8 cents per gallon, compared to 24.1 cents per gallon in the prior year period. The elevated retail fuel margin reported in third-quarter 2008 was favorably impacted by a dislocation between the wholesale and retail price of fuel that resulted from weather-related supply disruptions in the period.
Same-store merchandise sales increased 1.9% in third-quarter 2009, when compared to third-quarter 2008. Total merchandise sales in the retail segment totaled $99.5 million in the three months ended Sept. 30, 2009, versus $98 million in the prior year period. Third-quarter 2009 merchandise margin was 31.1%, versus 32.2% in third-quarter 2008.
In the first nine months of 2009, the retail segment reimaged 22 stores. From the inception of the company's reimaging program in 2006 through Sept. 30, 2009, the retail segment had reimaged nearly 27% of the company's total store base.
During third-quarter 2009, Delek US realized a $1.9 million pre-tax loss on the disposition of 16 noncore real estate assets in Tennessee.
Marketing segment contribution margin was $3.9 million in third-quarter 2009, compared to $7.1 million in third-quarter 2008. Marketing segment results include $500,000 in net losses on derivative instruments incurred during third-quarter 2009.
The marketing segment reported sales volumes of 11,897 barrels per day in third-quarter 2009, versus sales of 16,946 barrels per day in the prior year period, as inventories of refined products in central Texas rose to unusually high levels during the period. Refined product volumes that are typically shipped by competitors into upper Midwestern markets remained in central Texas during the period, as summer demand in the outside markets declined below historical levels. Given these competitive dynamics, sales and profit margins within the marketing segment were under pressure during third-quarter 2009.Delek US Holdings operates a network of nearly 500 retail gasoline and convenience stores in Alabama, Arkansas, Georgia, Kentucky, Louisiana, Mississippi, Tennessee and Virginia, primarily under the MAPCO Express, MAPCO Mart, East Coast, Discount Food Mart, Fast Food & Fuel and Favorite Market brands.
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