Arch Resources Reports Third Quarter 2024 Results
Achieves milestone in pending merger with CONSOL Energy with the October expiration of HSR waiting period
Receives all necessary international approvals to complete the merger
Manages through extended outage of CBT shiploader to ship 2.1 million tons of coking coal
Declares fixed quarterly cash dividend of
ST. LOUIS,
In the third quarter of 2024, Arch addressed operating and logistical challenges while laying the foundation for future value creation, as it:
- Announced plans to merge with CONSOL Energy Inc. ("CONSOL") to form a leading, global player in seaborne metallurgical and high-rank thermal coal markets
- Positioned the Leer South mine for enhanced operating execution in 2025 via the nearly completed transition to
District 2 - Progressed through a stretch of challenging geology at the Leer mine into a more advantageous reserve area that is expected to support productive mining in 2025 and beyond
- Managed through a three-week outage of the shiploader at
Curtis Bay Terminal that reduced coking coal shipments by an estimated 200,000 tons, and - Declared a
$0.25 fixed dividend, for a total payment of$4.6 million , payable onNovember 26, 2024 .
"Since the start of Q3, the Arch team has positioned the company for long-term value creation and growth via the announcement of a transformational merger, the near-completion of a multi-quarter transition into more favorable geology at both our world-class metallurgical mines, and strong continued progress in the development of the geologically advantageous B-Seam reserves at our export-focused, high-rank thermal West Elk mine," said
Operational and Financial Update
During Q3, the metallurgical marketing and logistics team managed through challenges associated with a three-week outage of the shiploader at the
During the third quarter, the thermal segment returned to profitability, buoyed by an improved performance from the
Arch generated cash provided by operating activities of
The just-declared dividend of
Merger Update
Arch currently expects the merger with CONSOL Energy to close by the end of the first quarter of 2025. Completion of the merger is subject to the satisfaction of the remaining customary closing conditions, including approval by both companies' stockholders.
Among many projected benefits, the merger:
- Joins best-in-sector operating platforms anchored by world-class, high-quality, low-cost, long-lived longwall coal-mining assets
- Creates a broad, diverse portfolio of coal qualities and blends capable of serving multiple growth markets and geographies
- Expands North American logistics and export capabilities, including ownership interests in two
East Coast terminals and longstanding relationships withWest Coast andGulf Coast ports
- Creates visible revenue stream with meaningful upside opportunities, balancing CONSOL's seaborne industrial business with Arch's exposure to higher-value metallurgical coals and associated demand dynamics
- Enables robust adjusted EBITDA and free cash flow generation
- Is expected to unlock additional value creation from
$110 million to$140 million of annual cost savings and synergies, and
- Creates the potential for robust capital returns and investments in innovation and growth underpinned by industry-leading cash generation and a strong balance sheet
Looking Ahead
"We are enthusiastic about the excellent progress the two companies are making to bring the merger to a successful closing, and remain focused on ensuring a speedy, efficient, and successful integration," Lang said. "At the same time, we believe we have positioned the metallurgical portfolio for a sustained period of operational excellence. We are more confident than ever that the pending merger will create a global industry leader well-equipped to capitalize on promising market dynamics in both of its core lines of business – global metallurgical and high-rank seaborne thermal coal."
Given the pending merger, Arch has elected to discontinue formal guidance at this time.
Cautionary Statement Regarding Forward-Looking Information
This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, such as our expected future business and financial performance, and intended to come within the safe harbor protections provided by those sections. The words "should," "could," "appears," "estimates," "expects," "anticipates," "intends," "may," "plans," "predicts," "projects," "believes," "seeks," or "will" or other comparable words and phrases identify forward-looking statements, which speak only as of the date of this press release. Forward-looking statements by their nature address matters that are, to different degrees, uncertain. Actual results may vary significantly from those anticipated due to many factors, including: the risk that an event, change or other circumstances could give rise to the termination of the merger agreement; the risk that a condition to closing of the merger may not be satisfied on a timely basis or at all; the length of time necessary to close the proposed merger; the risk that the merger may cause a loss of management personnel and other key employees; the risk that the businesses of the Company and CONSOL will not be integrated successfully after the closing of the merger; the risk that the anticipated benefits of the merger may not be realized or may take longer to realize than expected; the risk of litigation related to the proposed merger; loss of availability, reliability and cost-effectiveness of transportation facilities and fluctuations in transportation costs; operating risks beyond our control, including risks related to mining conditions, mining, processing and plant equipment failures or maintenance problems, weather and natural disasters, the unavailability of raw materials, equipment or other critical supplies, mining accidents, and other inherent risks of coal mining that are beyond our control; inflationary pressures on and availability and price of mining and other industrial supplies; changes in coal prices, which may be caused by numerous factors beyond our control, including changes in the domestic and foreign supply of and demand for coal and the domestic and foreign demand for steel and electricity; volatile economic and market conditions; the effects of foreign and domestic trade policies, actions or disputes on the level of trade among the countries and regions in which we operate, the competitiveness of our exports, or our ability to export; the effects of significant foreign conflicts; the loss of, or significant reduction in, purchases by our largest customers; our relationships with, and other conditions affecting our customers and our ability to collect payments from our customers; risks related to our international growth; competition, both within our industry and with producers of competing energy sources, including the effects from any current or future legislation or regulations designed to support, promote or mandate renewable energy sources; alternative steel production technologies that may reduce demand for our coal; our ability to secure new coal supply arrangements or to renew existing coal supply arrangements; cyber-attacks or other security breaches that disrupt our operations, or that result in the unauthorized release of proprietary, confidential or personally identifiable information; our ability to acquire or develop coal reserves in an economically feasible manner; inaccuracies in our estimates of our coal reserves; defects in title or the loss of a leasehold interest; the availability and cost of surety bonds; including potential collateral requirements; we may not have adequate insurance coverage for some business risks; disruptions in the supply of coal from third parties; decreases in the coal consumption of electric power generators could result in less demand and lower prices for thermal coal; our ability to pay dividends or repurchase shares of our common stock according to our announced intent or at all; the loss of key personnel or the failure to attract additional qualified personnel and the availability of skilled employees and other workforce factors; public health emergencies, such as pandemics or epidemics, could have an adverse effect on our business; existing and future legislation and regulations affecting both our coal mining operations and our customers' coal usage, governmental policies and taxes, including those aimed at reducing emissions of elements such as mercury, sulfur dioxides, nitrogen oxides, particulate matter or greenhouse gases; increased pressure from political and regulatory authorities, along with environmental and climate change activist groups, and lending and investment policies adopted by financial institutions and insurance companies to address concerns about the environmental impacts of coal combustion; increased attention to environmental, social or governance matters; our ability to obtain or renew various permits necessary for our mining operations; risks related to regulatory agencies ordering certain of our mines to be temporarily or permanently closed under certain circumstances; risks related to extensive environmental regulations that impose significant costs on our mining operations, and could result in litigation or material liabilities; the accuracy of our estimates of reclamation and other mine closure obligations; the existence of hazardous substances or other environmental contamination on property owned or used by us; and risks related to tax legislation and our ability to use net operating losses and certain tax credits. All forward-looking statements in this press release, as well as all other written and oral forward-looking statements attributable to us or persons acting on our behalf, are expressly qualified in their entirety by the cautionary statements contained in this section and elsewhere in this press release. These factors are not necessarily all of the important factors that could affect us. These risks and uncertainties, as well as other risks of which we are not aware or which we currently do not believe to be material, may cause our actual future results to be materially different from those expressed in our forward-looking statements. These forward-looking statements speak only as of the date on which such statements were made, and we do not undertake to update our forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by the federal securities laws. For a description of some of the risks and uncertainties that may affect our future results, you should see the "Risk Factors" in Item 1A of our Annual Report on Form 10 K for the year ended
# # #
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1 Adjusted EBITDA is defined and reconciled in the "Reconciliation of Non-GAAP measures" in this release. |
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Condensed Consolidated Statements of Operations |
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(In thousands, except per share data) |
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|
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|
|
|
|
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Three Months Ended |
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Nine Months Ended |
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|
2024 |
2023 |
|
2024 |
2023 |
|
|
(Unaudited) |
|
(Unaudited) |
||
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|
|
|
|
|
|
|
Revenues |
$ 617,899 |
$ 744,601 |
|
$ 1,906,840 |
$ 2,371,826 |
|
|
|
|
|
|
|
|
Costs, expenses and other operating |
|
|
|
|
|
|
Cost of sales (exclusive of items shown separately below) |
558,596 |
596,889 |
|
1,655,003 |
1,774,753 |
|
Depreciation, depletion and amortization |
40,890 |
36,717 |
|
118,149 |
108,273 |
|
Accretion on asset retirement obligations |
5,869 |
5,292 |
|
17,608 |
15,877 |
|
Selling, general and administrative expenses |
20,603 |
24,279 |
|
68,708 |
73,092 |
|
Merger related costs |
7,002 |
- |
|
7,002 |
- |
|
Severance costs related to voluntary separation plan |
6,649 |
- |
|
6,649 |
- |
|
Other operating income, net |
(5,461) |
(2,858) |
|
(23,854) |
(10,037) |
|
|
634,148 |
660,319 |
|
1,849,265 |
1,961,958 |
|
|
|
|
|
|
|
|
Income (loss) from operations |
(16,249) |
84,282 |
|
57,575 |
409,868 |
|
|
|
|
|
|
|
|
Interest expense, net |
|
|
|
|
|
|
Interest expense |
(3,912) |
(3,120) |
|
(12,161) |
(10,783) |
|
Interest and investment income |
5,665 |
4,803 |
|
17,168 |
12,340 |
|
|
1,753 |
1,683 |
|
5,007 |
1,557 |
|
|
|
|
|
|
|
|
Income (loss) before nonoperating expenses |
(14,496) |
85,965 |
|
62,582 |
411,425 |
|
|
|
|
|
|
|
|
Nonoperating expenses |
|
|
|
|
|
|
Non-service related pension and postretirement benefit credits |
1,667 |
4,507 |
|
1,096 |
5,692 |
|
Net loss resulting from early retirement of debt |
- |
- |
|
- |
(1,126) |
|
|
1,667 |
4,507 |
|
1,096 |
4,566 |
|
|
|
|
|
|
|
|
Income (loss) before income taxes |
(12,829) |
90,472 |
|
63,678 |
415,991 |
|
(Benefit from) provision for income taxes |
(6,608) |
16,781 |
|
(887) |
66,839 |
|
|
|
|
|
|
|
|
Net income (loss) |
$ (6,221) |
$ 73,691 |
|
$ 64,565 |
$ 349,152 |
|
|
|
|
|
|
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Net income (loss) per common share |
|
|
|
|
|
|
Basic earnings (loss) per share |
$ (0.34) |
$ 4.05 |
|
$ 3.55 |
$ 19.20 |
|
Diluted earnings (loss) per share |
$ (0.34) |
$ 3.91 |
|
$ 3.50 |
$ 18.12 |
|
|
|
|
|
|
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|
Weighted average shares outstanding |
|
|
|
|
|
|
Basic weighted average shares outstanding |
18,097 |
18,187 |
|
18,180 |
18,189 |
|
Diluted weighted average shares outstanding |
18,097 |
18,840 |
|
18,450 |
19,270 |
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|
|
|
|
|
|
Dividends declared per common share |
$ 0.25 |
$ 3.97 |
|
$ 3.01 |
$ 9.53 |
|
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|
|
|
|
|
|
Adjusted EBITDA (A) |
$ 44,161 |
$ 126,291 |
|
$ 206,983 |
$ 534,018 |
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(A) |
Adjusted EBITDA is defined and reconciled under "Reconciliation of Non-GAAP Measures" later in this release. |
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Condensed Consolidated Balance Sheets |
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(In thousands) |
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|
2024 |
2023 |
|
|
(Unaudited) |
|
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Assets |
|
|
|
Current assets |
|
|
|
Cash and cash equivalents |
$ 219,595 |
$ 287,807 |
|
Short-term investments |
36,347 |
32,724 |
|
Restricted cash |
1,100 |
1,100 |
|
Trade accounts receivable |
239,994 |
273,522 |
|
Other receivables |
8,580 |
13,700 |
|
Inventories |
235,091 |
244,261 |
|
Other current assets |
47,716 |
64,653 |
|
Total current assets |
788,423 |
917,767 |
|
|
|
|
|
Property, plant and equipment, net |
1,238,534 |
1,228,891 |
|
|
|
|
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Other assets |
|
|
|
Deferred income taxes |
126,608 |
124,024 |
|
Equity investments |
23,088 |
22,815 |
|
|
147,932 |
142,266 |
|
Other noncurrent assets |
46,293 |
48,410 |
|
Total other assets |
343,921 |
337,515 |
|
Total assets |
$ 2,370,878 |
$ 2,484,173 |
|
|
|
|
|
Liabilities and Stockholders' Equity |
|
|
|
Current liabilities |
|
|
|
Accounts payable |
$ 153,189 |
$ 205,001 |
|
Accrued expenses and other current liabilities |
112,767 |
127,617 |
|
Current maturities of debt |
126,897 |
35,343 |
|
Total current liabilities |
392,853 |
367,961 |
|
Long-term debt |
- |
105,252 |
|
Asset retirement obligations |
267,486 |
255,740 |
|
Accrued pension benefits |
816 |
878 |
|
Accrued postretirement benefits other than pension |
46,530 |
47,494 |
|
Accrued workers' compensation |
158,902 |
154,650 |
|
Other noncurrent liabilities |
60,337 |
72,742 |
|
Total liabilities |
926,924 |
1,004,717 |
|
|
|
|
|
Stockholders' equity |
|
|
|
Common Stock |
308 |
306 |
|
Paid-in capital |
764,202 |
720,029 |
|
Retained earnings |
1,839,125 |
1,830,018 |
|
|
(1,193,884) |
(1,109,679) |
|
Accumulated other comprehensive income |
34,203 |
38,782 |
|
Total stockholders' equity |
1,443,954 |
1,479,456 |
|
Total liabilities and stockholders' equity |
$ 2,370,878 |
$ 2,484,173 |
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Condensed Consolidated Statements of Cash Flows |
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(In thousands) |
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|
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Nine Months Ended |
|
|
|
2024 |
2023 |
|
|
(Unaudited) |
|
|
Operating activities |
|
|
|
Net income |
$ 64,565 |
$ 349,152 |
|
Adjustments to reconcile to cash from operating activities: |
|
|
|
Depreciation, depletion and amortization |
118,149 |
108,273 |
|
Accretion on asset retirement obligations |
17,608 |
15,877 |
|
Deferred income taxes |
(1,345) |
66,561 |
|
Employee stock-based compensation expense |
15,819 |
19,699 |
|
Amortization relating to financing activities |
2,168 |
1,317 |
|
Gain on disposals and divestitures, net |
(213) |
(714) |
|
Reclamation work completed |
(6,038) |
(17,642) |
|
Contribution to fund asset retirement obligations |
(5,667) |
(4,421) |
|
Changes in: |
|
|
|
Receivables |
39,936 |
(49,950) |
|
Inventories |
9,169 |
(10,199) |
|
Accounts payable, accrued expenses and other current liabilities |
(62,824) |
(31,241) |
|
Income taxes, net |
258 |
(999) |
|
Other |
20,774 |
8,105 |
|
Cash provided by operating activities |
212,359 |
453,818 |
|
|
|
|
|
Investing activities |
|
|
|
Capital expenditures |
(126,888) |
(121,030) |
|
Minimum royalty payments |
(988) |
(1,113) |
|
Proceeds from disposals and divestitures |
219 |
1,363 |
|
Purchases of short-term investments |
(41,397) |
(23,386) |
|
Proceeds from sales of short-term investments |
38,244 |
30,417 |
|
Investments in and advances to affiliates, net |
(10,330) |
(12,210) |
|
Cash used in investing activities |
(141,140) |
(125,959) |
|
|
|
|
|
Financing activities |
|
|
|
Proceeds from issuance of term loan due 2025 |
20,000 |
- |
|
Payments on term loan due 2025 |
(6,666) |
- |
|
Payments on term loan due 2024 |
(3,502) |
(2,250) |
|
Payments on convertible debt |
- |
(58,430) |
|
Net payments on other debt |
(23,717) |
(30,568) |
|
Debt financing costs |
(1,516) |
- |
|
Purchase of treasury stock |
(30,747) |
(122,502) |
|
Dividends paid |
(68,944) |
(183,790) |
|
Payments for taxes related to net share settlement of equity awards |
(24,339) |
(27,230) |
|
Proceeds from warrants exercised |
- |
43,949 |
|
Cash used in financing activities |
(139,431) |
(380,821) |
|
|
|
|
|
Decrease in cash and cash equivalents, including restricted cash |
(68,212) |
(52,962) |
|
Cash and cash equivalents, including restricted cash, beginning of period |
288,907 |
237,159 |
|
|
|
|
|
Cash and cash equivalents, including restricted cash, end of period |
$ 220,695 |
$ 184,197 |
|
|
|
|
|
Cash and cash equivalents, including restricted cash, end of period |
|
|
|
Cash and cash equivalents |
$ 219,595 |
$ 183,097 |
|
Restricted cash |
1,100 |
1,100 |
|
|
|
|
|
|
$ 220,695 |
$ 184,197 |
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Schedule of Consolidated Debt |
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(In thousands) |
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|
|
|
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|
|
|
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|
2024 |
2023 |
|
|
|
(Unaudited) |
|
|
|
|
|
|
|
Term loan due 2025 ( |
|
$ 13,333 |
$ - |
|
Term loan due 2024 ( |
|
- |
3,502 |
|
Tax exempt bonds ( |
|
98,075 |
98,075 |
|
Other |
|
16,812 |
40,529 |
|
Debt issuance costs |
|
(1,323) |
(1,511) |
|
|
|
126,897 |
140,595 |
|
Less: current maturities of debt |
|
126,897 |
35,343 |
|
Long-term debt |
|
$ - |
$ 105,252 |
|
|
|
|
|
|
Calculation of net (cash) debt |
|
|
|
|
Total debt (excluding debt issuance costs) |
|
$ 128,220 |
$ 142,106 |
|
Less liquid assets: |
|
|
|
|
Cash and cash equivalents |
|
219,595 |
287,807 |
|
Short term investments |
|
36,347 |
32,724 |
|
|
|
255,942 |
320,531 |
|
Net (cash) debt |
|
$ (127,722) |
$ (178,425) |
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Operational Performance |
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(In millions, except per ton data) |
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Three Months Ended
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Three Months Ended
|
Three Months Ended
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|
(Unaudited) |
(Unaudited) |
(Unaudited) |
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Metallurgical |
|
|
|
|
|
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|
Tons Sold |
2.4 |
|
2.2 |
|
2.3 |
|
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|
|
|
|
|
|
|
|
Segment Sales |
$ 282.5 |
$ 115.55 |
$ 286.2 |
$ 131.97 |
$ 355.0 |
|
|
Segment Cash Cost of Sales |
229.4 |
93.81 |
197.4 |
91.03 |
226.7 |
96.63 |
|
Segment Cash Margin |
53.1 |
21.74 |
88.8 |
40.94 |
128.3 |
54.70 |
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|
|
|
|
|
|
|
|
Thermal |
|
|
|
|
|
|
|
Tons Sold |
13.8 |
|
11.1 |
|
16.8 |
|
|
|
|
|
|
|
|
|
|
Segment Sales |
$ 232.2 |
$ 16.86 |
$ 199.7 |
$ 18.03 |
$ 281.6 |
$ 16.73 |
|
Segment Cash Cost of Sales |
220.4 |
16.00 |
200.1 |
18.07 |
259.0 |
15.39 |
|
Segment Cash Margin |
11.8 |
0.86 |
(0.4) |
(0.04) |
22.7 |
1.34 |
|
|
|
|
|
|
|
|
|
Total Segment Cash Margin |
$ 64.9 |
|
$ 88.4 |
|
$ 151.0 |
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|
|
|
|
|
|
|
|
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Selling, general and administrative expenses |
(20.6) |
|
(22.5) |
|
(24.3) |
|
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Other |
(0.1) |
|
(5.9) |
|
(0.4) |
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
$ 44.2 |
|
$ 59.9 |
|
$ 126.3 |
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Reconciliation of NON-GAAP Measures |
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(In thousands, except per ton data) |
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Included in the accompanying release, we have disclosed certain non-GAAP measures as defined by Regulation G. |
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Non-GAAP Segment coal sales per ton sold |
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Non-GAAP Segment coal sales per ton sold is calculated as segment coal sales revenues divided by segment tons sold. Segment coal sales revenues are adjusted for transportation costs, and may be adjusted for other items that, due to generally accepted accounting principles, are classified in "Other operating income, net" on the Consolidated Statements of Operations, but relate to price protection on the sale of coal. Segment coal sales per ton sold is not a measure of financial performance in accordance with generally accepted accounting principles. We believe segment coal sales per ton sold provides useful information to investors as it better reflects our revenue for the quality of coal sold and our operating results by including all income from coal sales. The adjustments made to arrive at these measures are significant in understanding and assessing our financial condition. Therefore, segment coal sales revenues should not be considered in isolation, nor as an alternative to coal sales revenues under generally accepted accounting principles. |
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Quarter ended |
Metallurgical |
Thermal |
All Other |
Consolidated |
|
(In thousands) |
|
|
|
|
|
GAAP Revenues in the Condensed Consolidated Statements of Operations |
$ 361,916 |
$ 255,983 |
$ - |
$ 617,899 |
|
Less: Adjustments to reconcile to Non-GAAP Segment coal sales revenue |
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|
|
|
|
Transportation costs |
79,370 |
23,802 |
- |
103,172 |
|
Non-GAAP Segment coal sales revenues |
$ 282,546 |
$ 232,181 |
$ - |
$ 514,727 |
|
Tons sold |
2,445 |
13,769 |
|
|
|
Coal sales per ton sold |
$ 115.55 |
$ 16.86 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter ended |
Metallurgical |
Thermal |
All Other |
Consolidated |
|
(In thousands) |
|
|
|
|
|
GAAP Revenues in the Condensed Consolidated Statements of Operations |
$ 375,958 |
$ 232,793 |
$ - |
$ 608,751 |
|
Less: Adjustments to reconcile to Non-GAAP Segment coal sales revenue |
|
|
|
|
|
Transportation costs |
89,794 |
33,126 |
- |
122,920 |
|
Non-GAAP Segment coal sales revenues |
$ 286,164 |
$ 199,667 |
$ - |
$ 485,831 |
|
Tons sold |
2,168 |
11,073 |
|
|
|
Coal sales per ton sold |
$ 131.97 |
$ 18.03 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter ended |
Metallurgical |
Thermal |
All Other |
Consolidated |
|
(In thousands) |
|
|
|
|
|
GAAP Revenues in the Condensed Consolidated Statements of Operations |
$ 432,835 |
$ 311,766 |
$ - |
$ 744,601 |
|
Less: Adjustments to reconcile to Non-GAAP Segment coal sales revenue |
|
|
|
|
|
Transportation costs |
77,806 |
30,128 |
- |
107,934 |
|
Non-GAAP Segment coal sales revenues |
$ 355,029 |
$ 281,638 |
$ - |
$ 636,667 |
|
Tons sold |
2,346 |
16,831 |
|
|
|
Coal sales per ton sold |
$ 151.33 |
$ 16.73 |
|
|
|
|
||||
|
Reconciliation of NON-GAAP Measures |
||||
|
(In thousands, except per ton data) |
||||
|
|
|
|
|
|
|
Non-GAAP Segment cash cost per ton sold |
|
|
|
|
|
|
||||
|
Non-GAAP Segment cash cost per ton sold is calculated as segment cash cost of coal sales divided by segment tons sold. Segment cash cost of coal sales is adjusted for transportation costs, and may be adjusted for other items that, due to generally accepted accounting principles, are classified in "Other operating income, net" on the Consolidated Statements of Operations, but relate directly to the costs incurred to produce coal. Segment cash cost per ton sold is not a measure of financial performance in accordance with generally accepted accounting principles. We believe segment cash cost per ton sold better reflects our controllable costs and our operating results by including all costs incurred to produce coal. The adjustments made to arrive at these measures are significant in understanding and assessing our financial condition. Therefore, segment cash cost of coal sales should not be considered in isolation, nor as an alternative to cost of sales under generally accepted accounting principles. |
||||
|
|
|
|
|
|
|
Quarter ended |
Metallurgical |
Thermal |
All Other |
Consolidated |
|
(In thousands) |
|
|
|
|
|
GAAP Cost of sales in the Condensed Consolidated Statements of Operations |
$ 308,758 |
$ 243,257 |
$ 6,581 |
$ 558,596 |
|
Less: Adjustments to reconcile to Non-GAAP Segment cash cost of coal sales |
|
|
|
|
|
Diesel fuel risk management derivative settlements classified in "Other operating income, net" |
- |
(900) |
- |
(900) |
|
Transportation costs |
79,370 |
23,802 |
- |
103,172 |
|
Cost of coal sales from idled or otherwise disposed operations |
- |
- |
4,646 |
4,646 |
|
Other (operating overhead, certain actuarial, etc.) |
- |
- |
1,935 |
1,935 |
|
Non-GAAP Segment cash cost of coal sales |
$ 229,388 |
$ 220,355 |
$ - |
$ 449,743 |
|
Tons sold |
2,445 |
13,769 |
|
|
|
Cash cost per ton sold |
$ 93.81 |
$ 16.00 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter ended |
Metallurgical |
Thermal |
All Other |
Consolidated |
|
(In thousands) |
|
|
|
|
|
GAAP Cost of sales in the Condensed Consolidated Statements of Operations |
$ 287,187 |
$ 232,298 |
$ 9,199 |
$ 528,684 |
|
Less: Adjustments to reconcile to Non-GAAP Segment cash cost of coal sales |
|
|
|
|
|
Diesel fuel risk management derivative settlements classified in "Other operating income, net" |
- |
(900) |
- |
(900) |
|
Transportation costs |
89,794 |
33,126 |
- |
122,920 |
|
Cost of coal sales from idled or otherwise disposed operations |
- |
- |
4,692 |
4,692 |
|
Other (operating overhead, certain actuarial, etc.) |
- |
- |
4,507 |
4,507 |
|
Non-GAAP Segment cash cost of coal sales |
$ 197,393 |
$ 200,072 |
$ - |
$ 397,465 |
|
Tons sold |
2,168 |
11,073 |
|
|
|
Cash cost per ton sold |
$ 91.03 |
$ 18.07 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter ended |
Metallurgical |
Thermal |
All Other |
Consolidated |
|
(In thousands) |
|
|
|
|
|
GAAP Cost of sales in the Condensed Consolidated Statements of Operations |
$ 304,511 |
$ 288,518 |
$ 3,860 |
$ 596,889 |
|
Less: Adjustments to reconcile to Non-GAAP Segment cash cost of coal sales |
|
|
|
|
|
Diesel fuel risk management derivative settlements classified in "Other operating income, net" |
- |
(564) |
- |
(564) |
|
Transportation costs |
77,806 |
30,128 |
- |
107,934 |
|
Cost of coal sales from idled or otherwise disposed operations |
- |
- |
1,184 |
1,184 |
|
Other (operating overhead, certain actuarial, etc.) |
- |
- |
2,676 |
2,676 |
|
Non-GAAP Segment cash cost of coal sales |
$ 226,705 |
$ 258,954 |
$ - |
$ 485,659 |
|
Tons sold |
2,346 |
16,831 |
|
|
|
Cash cost per ton sold |
$ 96.63 |
$ 15.39 |
|
|
|
|
|||||
|
Reconciliation of Non-GAAP Measures |
|||||
|
(In thousands) |
|||||
|
|
|
|
|
|
|
|
Adjusted EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA is defined as net income attributable to the Company before the effect of net interest expense, income taxes, depreciation, depletion and amortization, accretion on asset retirement obligations and nonoperating expenses. Adjusted EBITDA may also be adjusted for items that may not reflect the trend of future results by excluding transactions that are not indicative of the Company's core operating performance. |
|||||
|
|
|||||
|
Adjusted EBITDA is not a measure of financial performance in accordance with generally accepted accounting principles, and items excluded from Adjusted EBITDA are significant in understanding and assessing our financial condition. Therefore, Adjusted EBITDA should not be considered in isolation, nor as an alternative to net income, income from operations, cash flows from operations or as a measure of our profitability, liquidity or performance under generally accepted accounting principles. The Company uses adjusted EBITDA to measure the operating performance of its segments and allocate resources to the segments. Furthermore, analogous measures are used by industry analysts and investors to evaluate our operating performance. Investors should be aware that our presentation of Adjusted EBITDA may not be comparable to similarly titled measures used by other companies. The table below shows how we calculate Adjusted EBITDA. |
|||||
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
||
|
|
2024 |
2023 |
|
2024 |
2023 |
|
|
(Unaudited) |
|
(Unaudited) |
||
|
Net income (loss) |
$ (6,221) |
$ 73,691 |
|
$ 64,565 |
$ 349,152 |
|
(Benefit from) provision for income taxes |
(6,608) |
16,781 |
|
(887) |
66,839 |
|
Interest expense, net |
(1,753) |
(1,683) |
|
(5,007) |
(1,557) |
|
Depreciation, depletion and amortization |
40,890 |
36,717 |
|
118,149 |
108,273 |
|
Accretion on asset retirement obligations |
5,869 |
5,292 |
|
17,608 |
15,877 |
|
Merger related costs |
7,002 |
- |
|
7,002 |
- |
|
Severance cost related to voluntary separation plan |
6,649 |
- |
|
6,649 |
- |
|
Non-service related pension and postretirement benefit credits |
(1,667) |
(4,507) |
|
(1,096) |
(5,692) |
|
Net loss resulting from early retirement of debt |
- |
- |
|
- |
1,126 |
|
|
|
|
|
|
|
|
Adjusted EBITDA |
$ 44,161 |
$ 126,291 |
|
$ 206,983 |
$ 534,018 |
|
EBITDA from idled or otherwise disposed operations |
4,101 |
30 |
|
11,493 |
8,726 |
|
Selling, general and administrative expenses |
20,603 |
24,279 |
|
68,708 |
73,092 |
|
Other |
(1,851) |
1,095 |
|
(1,360) |
7,189 |
|
|
|
|
|
|
|
|
Segment Adjusted EBITDA from coal operations |
$ 67,014 |
$ 151,695 |
|
$ 285,824 |
$ 623,025 |
|
|
|
|
|
|
|
|
Segment Adjusted EBITDA |
|
|
|
|
|
|
Metallurgical |
54,167 |
128,322 |
|
270,978 |
524,218 |
|
Thermal |
12,847 |
23,373 |
|
14,846 |
98,807 |
|
|
|
|
|
|
|
|
Total Segment Adjusted EBITDA |
$ 67,014 |
$ 151,695 |
|
$ 285,824 |
$ 623,025 |
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