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    Alon USA Continues Righting Its Balance Sheet

    The retailer completed its first ground-up build in several years during the first quarter.

    By Melissa Kress, Convenience Store News

    DALLAS -- Alon USA Energy Inc. continues to strengthen its financials, recording net income of $54.2 million for the first quarter of 2013, compared to net income of $8.5 million for the same period last year.

    "It was a very good quarter for the company," President and CEO Paul Eisman said during the company's earnings call this morning. "We generated record first-quarter earnings. We were able to continue to use cash generated to reduce net debt."

    He credited the company's team and their accomplishments for helping Alon USA bring in the record numbers it did, and positioning it well for the future.

    "Our balance sheet is getting to where it needs to be and this will allow us to start investing in projects to increase earnings growth," Eisman added.

    On the retail front, retail fuel volumes were up 7.5 percent over the first quarter of 2012, while fuel margins were "very good" at 20.3 cents per gallon compared to 18 cents for the same three-month period last year, the chief executive explained.

    Inside the stores, merchandise sales were unchanged from the first quarter of 2012, with merchandise margins coming in at 32.3 percent.

    The first quarter also saw some activity around the brick-and-mortar aspects of the company’s retail division. Alon USA is continuing with its convenience store remodeling program and completed its first ground-up build in several years with its latest store in El Paso, Texas, Eisman explained.

    Alon USA is the largest 7-Eleven licensee in the United States and operates approximately 300 convenience stores in Texas and New Mexico.

     

    By Melissa Kress, Convenience Store News
    • About Melissa Kress Melissa Kress joined Stagnito Business Information's Convenience Store News and Convenience Store News for the Single Store Owner in November 2010. Her primary beats include alcoholic beverages and tobacco. Kress has been a professional journalist since 1995. A graduate of West Virginia University, she began her career in community journalism before moving to business-to-business publishing in 2000, covering commercial real estate.

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