"I'm convinced that the transportation sector is going to look a lot different 20 or 30 years from now than it does today," Morris said during an earnings conference call with investors yesterday. "And I think it's wise for us to position for that."
Effective May 3, Paul Eisman, formerly president of Alon Energy, was named the second CEO of the company [image-nocss] as Morris moves into his new role, as reported in a CSP Daily News Flash yesterday.
The change, Morris said, is something he envisioned ever since Eisman joined the company in March 2010.
"I have long considered this change, and that is one of the reasons that I asked Paul Eisman to join us last year," Morris said. "As many of you know, I am particularly interested in the transitions occurring in the transportation sector. Over the next many years, I look forward to focusing some of my time in this area."
How that role will develop is yet to be determined, he added. "It's early. [Chairman David Wiessman] and I have been talking about this for some period of time," he said. "I have some interest in some particular technologies, but I haven't had time till today to think about it at this point. I just have ideas at this point, and over the next few months, we'll develop better ideas."
Meanwhile, Eisman presided over his first earnings call under outstanding results on the retail and fuel marketing side of the business, which he said "enjoyed the best first quarter in its history."
"On the wholesale side, branded gasoline volume is up 21% vs. the same quarter last year, while margins were only half a cent lower per gallon despite pressure from higher gasoline prices," he said. "Retail fuel sales were up 12% over the same period last year, with an average margin of 14.6 cents per gallon.
"Merchandise sales were up 7% quarter-on-quarter, while we were able to increase the merchandise margin to over 33% as compared to 30% in the first quarter of 2010. By almost any metric, the performance of this segment has been excellent."
The retail and branded marketing segment had adjusted EBITDA of $7.5 million in the first quarter of 2011, and over the last 12 months through March 31, 2011, adjusted EBITDA was $38.9 million. Companywide, net income for first quarter was $13.1 million, or 24 cents per share, compared to net loss of $52.9 million, or a loss of 98 cents per share, for the same period in the prior year.
About his promotion to CEO, Eisman said, "I want to take some time to thank our board of directors, our chairman David Wiessman and, of course, Jeff Morris for supporting me and providing me the opportunity to move into the CEO role here at Alon USA. I would especially like to thank Jeff for what he's done over these many years. His experience, technical and business skills, and guidance will continue to benefit the company. I value both his counsel and his friendship."
Eisman joined Alon Energy in March 2010, after serving as executive vice president of Refining & Marketing Operations with Frontier Oil Corp.
He started his career at Diamond Shamrock as a process engineer in 1979 and later served in a number of technical, commercial and managerial positions with that company. Upon the merger with the Ultramar Corp. in 1996, Eisman assumed responsibility for the refinery operations of the combined company. He has also worked at Valero Energy Corp. and KBC Advanced Technologies.
Morris joined Alon USA when it was formed in August 2000 after ALON Israel Oil Co. LTD purchased the downstream operations of Atofina Petrochemicals Inc. (FINA).
He began his career with FINA and held technical positions in chemicals and research and development, before assuming various managerial posts at the Big Spring refinery. He served as vice president of FINA's Southwestern Business Unit from 1995 to 1998 and vice president of the Southeastern Business Unit from 1998 to 2000.
Dallas-based Alon USA Energy Inc. is an independent refiner and marketer of petroleum products, operating primarily in the South Central, Southwestern and Western regions of the United States. The company 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. Alon USA--under its Alon Brands subsidiary--is the largest 7-Eleven licensee in the United States and operates more than 300 convenience stores in Texas and New Mexico. Alon markets motor-fuel products under the FINA brand at these locations and at more than 600 distributor-serviced locations.
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