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Share Name | Share Symbol | Market | Type |
---|---|---|---|
NYSE:ANR | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 0.15 | 0 | 01:00:00 |
BRISTOL, Va., Oct. 30, 2014 /PRNewswire/ -- Alpha Natural Resources, Inc. (NYSE: ANR), a leading U.S. coal producer, reported a third quarter 2014 net loss of $185 million or $0.84 per diluted share, compared with a net loss of $458 million or $2.07 per diluted share in the third quarter of 2013. Excluding the items described in "Reconciliation of Adjusted Net Loss to Net Loss," the third quarter 2014 adjusted net loss was $118 million or $0.53 per diluted share compared with adjusted net loss of $134 million or $0.61 per diluted share in the third quarter of 2013.
Earnings before interest, taxes, depreciation, depletion and amortization (EBITDA) for the third quarter of 2014 was $26 million, compared with an EBITDA loss of $341 million in the year ago period. Excluding the items described in our "Reconciliation of EBITDA and Adjusted EBITDA to Net Loss," the third quarter 2014 Adjusted EBITDA was $54 million, including a $16 million pre-tax gain from the sale of 3.1 million Rice Energy shares, compared with $33 million in the third quarter of 2013.
Quarterly Financial & Operating Highlights (millions, except per-share and per-ton amounts) | ||||
Q3 2014 |
Q2 2014 |
Q3 2013 | ||
Coal revenues |
$920.8 |
$919.3 |
$1,028.8 | |
Net loss |
($185.0) |
($512.6) |
($458.2) | |
Net loss per diluted share |
($0.84) |
($2.32) |
($2.07) | |
Adjusted net loss1 |
($118.3) |
($123.4) |
($134.4) | |
Adjusted net loss per diluted share1 |
($0.53) |
($0.56) |
($0.61) | |
EBITDA1 |
$26.3 |
($251.1) |
($341.1) | |
Adjusted EBITDA1 |
$53.7 |
$49.9 |
$33.4 | |
Tons of coal sold |
21.2 |
19.9 |
21.8 | |
Weighted average coal margin per ton |
$3.33 |
$4.90 |
$2.47 | |
Adjusted weighted average coal margin per ton1 |
$3.69 |
$4.09 |
$2.69 |
1. These are non-GAAP financial measures. A reconciliation of adjusted net loss to net loss, EBITDA and adjusted EBITDA to net loss, and adjusted cost of coal sales per ton to cost of coal sales per ton are included in tables accompanying the financial schedules. Adjusted weighted average coal margin per ton is defined as the weighted average total sales realization per ton, less the adjusted weighted average total cost of coal sales per ton. |
"While coal markets remained extremely challenging in the third quarter, we continue to be proactive by thoughtfully rationalizing our production base, reducing costs and maximizing efficiency. Our continuing cost reduction efforts in the East and other corporate actions are yielding strong results, including multi-year lows in Eastern adjusted cost of coal sales at $61.69 per ton in the third quarter, allowing us to reduce our Eastern cost of coal sales guidance for 2014 by $2.00 to a midpoint of $63.00 per ton. Although costs in the PRB were lower in the third quarter compared to the second quarter, they once again came in above our expectations, primarily due to rail underperformance, which continues to hinder shipment volumes," said Kevin Crutchfield, chairman and CEO.
The company remains focused on prudently managing its liquidity and balance sheet during this difficult market period. Alpha recently announced an amendment and extension of its senior secured credit facility and established a new $200 million accounts receivable securitization facility, further solidifying its liquidity position while improving future financial flexibility. As a result of these efforts, Alpha maintained its liquidity position of approximately $2.3 billion. In the third quarter the company sold 3.1 million shares of Rice Energy for approximately $82 million in cash, leaving Alpha with more than 6.4 million Rice Energy shares, valued at approximately $170 million as of September 30, 2014.
In October, the company's subsidiary AMFIRE Mining Company, LLC entered into an asset purchase agreement with Rosebud Mining Company, a well-respected regional operator with synergies in both geography and transportation, to divest substantially all of AMFIRE's assets, located in Central Pennsylvania, for total consideration of approximately $86 million, including $75 million in cash and assumption of certain liabilities. The transaction is expected to close by year end. Total 2014 AMFIRE production through September was approximately 1.7 million tons, including 1.2 million tons of metallurgical coal.
The company's Marcellus gas joint venture with EDF Trading Resources, LLC ("JV"), a fifty percent owner with Alpha, is progressing well with a net acreage position to the JV totaling more than 20,000 acres. During the third quarter, the Pennsylvania Department of Environmental Protection issued two drilling permits to the JV and construction has begun on an initial pad location. Production from initial wells is expected in early 2015 with at least four additional wells expected during the year. The JV is currently evaluating additional pad sites.
"While we are pleased with our operational and cost performance in the third quarter, coal pricing remains highly challenging across all regions in both domestic and export markets. For the third consecutive quarter, the Asian hard coking coal benchmark remained at near $120 per metric ton. Thermal markets continue to experience soft prices, with API2 in the low $70s per tonne – well below the break-even point for most U.S. producers – and domestic Central Appalachia thermal declining to the low $50s. Given the continued price weakness in these two thermal markets, we are continuing to assess our Central Appalachian thermal production for 2015, as indicated in our updated WARN notification press release in late September. Northern Appalachia has been the strongest thermal market in the third quarter on a relative basis, with prices in the mid-$50s, despite strong competition from the Illinois Basin and softening natural gas prices," said Paul Vining, Alpha's president.
As previously disclosed, the Emerald long-wall mine will operate only through the second panel in district D. Emerald will be conducting development work with minimal production during the first quarter of 2015, likely resulting in higher overall Eastern cost of coal sales per ton during that period. We now expect Emerald to cease production near the end of 2015.
While Alpha continues to rationalize its cost base and manage its balance sheet, the company has not diverted its focus from 'Running Right' as evidenced by the number of safety and performance awards won by Alpha's affiliates in 2014. Specifically, Paramont Coal Company's Deep Mine #37 and Dickenson-Russell Coal Company's Roaring Fork #4 won the Mine Safety Award in the Large Underground category; Twin Star Mining's Elk Creek Mine won the Mine Safety Award in the Medium Surface category and received an award for five years without time lost to injuries; Paramont Coal Company's #88 Strip in Wise County won a Mine Safety Award in the Large Surface category; and Pigeon Creek Processing Corporation's Plant #1 was recognized with a Virginia State Safety Award in the Large Coal Processing Facility category. Finally, the National Association of State Land Reclamationists (NASLR) presented Paramont Coal Company's Red Onion Surface Mine with its Annual Coal Mining Reclamation Award.
Financial Performance
Year-to-Date Results
Liquidity and Capital Resources
Cash provided by operating activities for the quarter ended September 30, 2014 was $34 million, compared with cash provided by operating activities of $111 million for the third quarter of 2013. Capital expenditures for the third quarter of 2014 were $45 million, compared with $56 million in the third quarter of 2013. For the first nine months of 2014, cash used in operating activities totaled $237 million, including $195 million in payments related to the shareholder class action settlement, net of insurance recoveries of $70 million, compared to cash provided by operating activities of $179 million in the same period a year ago.
Alpha expects to receive $75 million in cash at the AMFIRE transaction close, which is anticipated by year end.
As of the end of the third quarter of 2014, Alpha had total liquidity of approximately $2.3 billion, consisting of cash, cash equivalents and marketable securities of more than $1.3 billion, which includes approximately 6.4 million shares of Rice Energy valued at approximately $170 million, and more than $0.9 billion available under the Company's secured credit and accounts receivable securitization facilities. Rice Energy shares held by Alpha are subject to customary lock-up provisions which expire on November 11, 2014, after which we may consider a potential sale of some or all of these shares. Total long-term debt, net of debt discounts, and including the current portion of long-term debt as of September 30, 2014, was approximately $3.9 billion, including approximately $154 million of senior convertible notes maturing in 2015.
Market Overview
Metallurgical Coal
The global seaborne metallurgical coal market has shown no meaningful improvement over the last several months and continues to exhibit dynamics of an oversupplied market. The Asian hard coking coal benchmark remained at approximately $120 per metric tonne for the third consecutive quarter, with spot assessments measured in the range of $110 – $115 per metric tonne over the past several months.
Decelerating growth in steel demand in China, coupled with increases in Australian metallurgical coal production continue to cause an oversupplied seaborne metallurgical coal market. The World Steel Association (WSA) recently lowered its global apparent steel usage (ASU) growth forecast for 2015 to 2.0 percent from 3.3 percent, with Chinese ASU growth forecast dropping from 2.7 percent to 0.8 percent. Furthermore, Chinese metallurgical coal imports continued to decline significantly in 2014 to an annualized rate of approximately 60 million tonnes, compared to approximately 75 million tonnes in 2013. Australian year-to-date exports are up 12 percent, or 13 million tonnes, to 120 million tonnes through August.
Announced cuts to global metallurgical coal production through production curtailments and mine idlings are in the 25 million tonne range with additional production cuts likely as current prices do not allow a return for many of the global producers. North American production cuts account for approximately 15 million tonnes, or nearly 60 percent of announced global cuts to date. As stated on our second quarter earnings conference call, we believe many of these announced reductions have not yet taken full effect as certain mines have yet to idle or are selling their remaining inventory.
Thermal Coal
Recent price trends suggest that the thermal coal market will remain weak into early 2015. Although domestic utility inventories remain at historically low levels, softer natural gas prices, increased imports of thermal coal and declining usage of thermal coal by power plants in response to EPA regulations have contributed to a continued weak pricing and demand environment.
Rail underperformance continues to hinder shipping volumes across all regions, particularly in the PRB. Utility inventory levels at the end of September 2014 were at approximately 45 days of coal burn compared to a five-year average of approximately 65 days and 45 days of burn as of the end of August 2014.
While pricing in Northern Appalachia (NAPP) has held up better than in other regions, it is still down over the past few months. Increased competition from the Illinois Basin, the threat of increased production from competing mines, and natural gas prices retreating to the high $3 per MMBtu range with large basis differentials have all contributed to continued soft market conditions in NAPP. Utility inventories in NAPP stood at roughly 62 days of coal burn at the end of September 2014, compared to approximately 56 days in August 2014 and five-year average of 61 days.
Utility stockpiles in Central Appalachia (CAPP) at the end of September 2014 are well below normal five-year average burn levels, at approximately 77 days, up from 73 days at the end of August 2014, but down significantly from roughly 120 days a year ago. Despite this, we continue to see no demonstrated sense of urgency from the utilities, due in part to mild summer weather, lackluster demand and strong natural gas injections over the past several months.
The seaborne market is equally uninspiring. API2 spot pricing weakened further from roughly $76 per tonne in the prior quarter to approximately $73 per tonne currently and in line with 2015 calendar year pricing - well below the break-even point for the majority of U.S. producers.
2014 and 2015 Outlook
We are increasing our 2014 shipment guidance for Eastern metallurgical and Eastern steam coals while maintaining our PRB guidance. We now expect to ship between 79 and 86 million tons, including 17 to 19 million tons of Eastern metallurgical coal, 28 to 30 million tons of Eastern steam coal, and 34 to 37 million tons of Western steam coal. The increase in expected shipment volumes of Eastern metallurgical coal is principally due to a shift of crossover coals into the metallurgical markets, increased use of purchased coal in our sales mix and extension of the WARN notices at several mines. We have committed a total of approximately 56 million tons for 2015, consisting of more than eight million tons of metallurgical coal, more than 16 million tons of Central and Northern Appalachian coal and nearly 31 million tons of PRB coal. As of October 21, 2014, 100 percent of the midpoint of anticipated 2014 metallurgical coal shipments was committed and priced at an average expected per ton realization of $85.71. Based on the midpoint of guidance, 99 percent of anticipated 2014 Eastern steam coal shipments were committed and priced at an average expected per ton realization of $58.03, and 100 percent of the midpoint of anticipated 2014 PRB shipments was committed and priced at an average expected per ton realization of $11.99. Alpha's 2014 guidance for its Eastern adjusted cost of coal sales per ton is now $62.00 to $64.00, while Western cost of coal sales per ton is now at $11.00 to $11.50. Guidance for 2014 capital expenditures remains at $225 million to $275 million. Based on preliminary estimates, we expect 2015 capital expenditures to range from $275 million to $350 million. The increase in 2015 capital expenditures relative to 2014 is primarily due to anticipated regulatory and environmental investments as well as incremental equipment rebuild expenditures. SG&A guidance for 2014, which excludes merger related expenses, is now $130 million to $140 million. The company's 2014 depletion, depreciation and amortization expense is unchanged at $700 million to $800 million. Interest expense guidance is increased slightly to $275 million to $290 million. Approximately $200 million to $210 million of this interest expense is cash interest. We expect 2015 interest expense and cash paid for interest to be $310 million to $330 million and $230 million to $245 million, respectively.
Guidance (in millions, except per ton and percentage amounts) | |
2014 | |
Average per Ton Sales Realization on Committed |
|
West |
$11.99 |
Eastern Steam |
$58.03 |
Eastern Metallurgical |
$85.71 |
Coal Shipments (tons)3 |
79 – 86 |
West |
34 – 37 |
Eastern Steam |
28 – 30 |
Eastern Metallurgical |
17 – 19 |
Committed and Priced (%)3,4 |
100% |
West |
100% |
Eastern Steam |
99% |
Eastern Metallurgical |
100% |
Committed and Unpriced (%)3,4 |
0% |
West |
0% |
Eastern Steam |
1% |
Eastern Metallurgical |
0% |
West – Adjusted Cost of Coal Sales per Ton5 |
$11.00 – $11.50 |
East – Adjusted Cost of Coal Sales per Ton5 |
$62.00 – $64.00 |
Selling, General & Administrative Expense5 |
$130 – $140 |
Depletion, Depreciation & Amortization |
$700 – $800 |
Interest Expense |
$275 – $290 |
Cash Paid for Interest |
$200 – $210 |
Capital Expenditures6 |
$225 – $275 |
NOTES:
About Alpha Natural Resources
Alpha Natural Resources is one of the largest and most regionally diversified coal suppliers in the United States. With affiliate mining operations in Virginia, West Virginia, Kentucky, Pennsylvania and Wyoming, Alpha supplies metallurgical coal to the steel industry and thermal coal to generate power to customers on five continents. Consistent with its Running Right process, Alpha is committed to being a leader in mine safety and an environmental steward in the communities where its affiliates operate. For more information, visit Alpha's website at www.alphanr.com.
Forward Looking Statements
This news release includes forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on Alpha's expectations and beliefs concerning future events and involve risks and uncertainties that may cause actual results to differ materially from current expectations. These factors are difficult to predict accurately and may be beyond Alpha's control. The following factors are among those that may cause actual results to differ materially from our forward-looking statements:
These and other risks and uncertainties are discussed in greater detail in Alpha's Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and other documents filed with the Securities and Exchange Commission. Forward-looking statements in this news release or elsewhere speak only as of the date made. New uncertainties and risks arise from time to time, and it is impossible for Alpha to predict these events or how they may affect the Company. Alpha has no duty to, and does not intend to, update or revise the forward-looking statements in this news release after the date it is issued. In light of these risks and uncertainties, investors should keep in mind that the results, events or developments disclosed in any forward-looking statement made in this news release may not occur.
FINANCIAL TABLES FOLLOW
Use of Non-GAAP Measures
In addition to the results prepared in accordance with generally accepted accounting principles in the United States (GAAP) provided throughout this press release, Alpha has presented the following non-GAAP financial measures, which management uses to gauge operating performance: EBITDA, adjusted EBITDA, adjusted net income (loss), adjusted diluted income (loss) per common share, adjusted cost of coal sales per ton, adjusted coal margin per ton, and adjusted weighted average coal margin per ton. These non-GAAP financial measures exclude various items detailed in the attached "Reconciliation of EBITDA and Adjusted EBITDA to Net Loss" and "Reconciliation of Adjusted Net Loss to Net Loss."
The definition of these non-GAAP measures may be changed periodically by management to adjust for significant items important to an understanding of operating trends. These measures are not intended to replace financial performance measures determined in accordance with GAAP. Rather, they are presented as supplemental measures of the Company's performance that management finds useful in assessing the company's financial performance and believes are useful to securities analysts, investors and others in assessing the Company's performance over time. Moreover, these measures are not calculated identically by all companies and therefore may not be comparable to similarly titled measures used by other companies.
Alpha Natural Resources, Inc. and Subsidiaries | |||||
Condensed Consolidated Statements of Operations | |||||
(In Thousands Except Share and Per Share Data) | |||||
(Unaudited) | |||||
Three Months Ended September 30, |
Nine Months Ended September 30, | ||||
2014 |
2013 |
2014 |
2013 | ||
Revenues: |
|||||
Coal revenues |
$ 920,833 |
$ 1,028,847 |
$ 2,792,906 |
$ 3,292,412 | |
Freight and handling revenues |
111,816 |
135,931 |
362,356 |
448,316 | |
Other revenues |
17,943 |
26,316 |
61,201 |
119,080 | |
Total revenues |
1,050,592 |
1,191,094 |
3,216,463 |
3,859,808 | |
Costs and expenses: |
|||||
Cost of coal sales (exclusive of items shown separately below) |
864,998 |
988,995 |
2,589,530 |
3,082,330 | |
Freight and handling costs |
111,816 |
135,931 |
362,356 |
448,316 | |
Other expenses |
17,988 |
120,698 |
39,873 |
155,479 | |
Depreciation, depletion and amortization |
170,895 |
196,292 |
562,262 |
650,021 | |
Amortization of acquired intangibles, net |
9,166 |
2,748 |
27,909 |
908 | |
Selling, general and administrative expenses (exclusive of depreciation, |
|||||
depletion and amortization shown separately above) |
34,798 |
38,899 |
119,752 |
120,664 | |
Asset impairment and restructuring |
11,544 |
2,017 |
23,633 |
24,358 | |
Goodwill impairment |
- |
253,102 |
308,651 |
253,102 | |
Total costs and expenses |
1,221,205 |
1,738,682 |
4,033,966 |
4,735,178 | |
Loss from operations |
(170,613) |
(547,588) |
(817,503) |
(875,370) | |
Other income (expense): |
|||||
Interest expense |
(75,688) |
(62,233) |
(211,662) |
(182,587) | |
Interest income |
574 |
1,008 |
1,730 |
3,133 | |
Gain on sale of marketable equity securities |
16,435 |
- |
16,435 |
- | |
Gain (loss) on early extinguishment of debt |
- |
158 |
(2,022) |
(33,039) | |
Gain on exchange of equity-method investment |
- |
- |
250,331 |
- | |
Miscellaneous income, net |
379 |
7,277 |
2,493 |
24,131 | |
Total other income (expense), net |
(58,300) |
(53,790) |
57,305 |
(188,362) | |
Loss before income taxes |
(228,913) |
(601,378) |
(760,198) |
(1,063,732) | |
Income tax benefit |
43,938 |
143,137 |
6,898 |
309,022 | |
Net loss |
$ (184,975) |
$ (458,241) |
$ (753,300) |
$ (754,710) | |
Loss per common share: |
|||||
Basic loss per common share: |
$ (0.84) |
$ (2.07) |
$ (3.40) |
$ (3.42) | |
Diluted loss per common share: |
$ (0.84) |
$ (2.07) |
$ (3.40) |
$ (3.42) | |
Weighted average shares outstanding: |
|||||
Weighted average shares--basic |
221,491,811 |
220,960,449 |
221,342,088 |
220,850,020 | |
Weighted average shares--diluted |
221,491,811 |
220,960,449 |
221,342,088 |
220,850,020 | |
This information is intended to be reviewed in conjunction with the company's filings with the U.S. Securities and Exchange Commission. |
Alpha Natural Resources, Inc. and Subsidiaries | ||||||
Supplemental Sales, Operations and Financial Data | ||||||
(In Thousands, Except Per Ton and Percentage Data) | ||||||
(Unaudited) | ||||||
Three Months Ended |
Nine Months Ended September 30, | |||||
September 30, |
June 30, |
September 30, |
2014 |
2013 | ||
Tons sold (1): |
||||||
Powder River Basin |
9,280 |
7,908 |
10,087 |
26,635 |
28,825 | |
Eastern steam |
7,183 |
7,486 |
6,726 |
22,254 |
21,779 | |
Eastern metallurgical |
4,773 |
4,492 |
5,034 |
13,656 |
15,705 | |
Total |
21,236 |
19,886 |
21,847 |
62,545 |
66,309 | |
Average realized price per ton sold (2)(7): |
||||||
Powder River Basin |
$ 11.81 |
$ 11.81 |
$ 12.58 |
$ 11.97 |
$ 12.67 | |
Eastern steam |
$ 58.16 |
$ 58.53 |
$ 63.21 |
$ 58.32 |
$ 62.51 | |
Eastern metallurgical |
$ 82.45 |
$ 86.31 |
$ 94.73 |
$ 86.14 |
$ 99.70 | |
Weighted average total |
$ 43.36 |
$ 46.23 |
$ 47.09 |
$ 44.65 |
$ 49.65 | |
Coal revenues: |
||||||
Powder River Basin |
$ 109,602 |
$ 93,391 |
$ 126,865 |
$ 318,778 |
$ 365,188 | |
Eastern steam |
417,759 |
438,144 |
425,097 |
1,297,764 |
1,361,387 | |
Eastern metallurgical |
393,472 |
387,718 |
476,885 |
1,176,364 |
1,565,837 | |
Total coal revenues |
$ 920,833 |
$ 919,253 |
$ 1,028,847 |
$ 2,792,906 |
$ 3,292,412 | |
Adjusted cost of coal sales per ton (3)(7)(8)(11): |
||||||
Powder River Basin |
$ 11.32 |
$ 12.06 |
$ 9.29 |
$ 11.15 |
$ 9.79 | |
East (4) |
$ 61.69 |
$ 62.01 |
$ 74.52 |
$ 63.14 |
$ 72.73 | |
Adjusted weighted average total |
$ 39.67 |
$ 42.14 |
$ 44.40 |
$ 41.00 |
$ 45.37 | |
Adjusted weighted average coal margin per ton (9) |
$ 3.69 |
$ 4.09 |
$ 2.69 |
$ 3.65 |
$ 4.28 | |
Adjusted weighted average coal margin percentage (10) |
8.5% |
8.8% |
5.7% |
8.2% |
8.6% | |
Cost of coal sales per ton (3)(7)(11): |
||||||
Powder River Basin |
$ 11.32 |
$ 12.06 |
$ 9.29 |
$ 11.15 |
$ 9.79 | |
East (4) |
$ 62.32 |
$ 60.65 |
$ 74.93 |
$ 62.91 |
$ 73.60 | |
Weighted average total |
$ 40.03 |
$ 41.33 |
$ 44.62 |
$ 40.87 |
$ 45.86 | |
Weighted average coal margin per ton (5) |
$ 3.33 |
$ 4.90 |
$ 2.47 |
$ 3.78 |
$ 3.79 | |
Weighted average coal margin percentage (6) |
7.7% |
10.6% |
5.2% |
8.5% |
7.6% | |
Net cash (used in) provided by operating activities |
$ 34,296 |
$ (217,048) |
$ 111,083 |
$ (236,713) |
$ 178,579 | |
Capital expenditures |
$ 45,341 |
$ 43,115 |
$ 56,123 |
$ 128,174 |
$ 163,129 | |
(1) Stated in thousands of short tons. |
||||||
(2) Coal revenues divided by tons sold. This statistic is stated as free on board (FOB) at the processing plant. | ||||||
(3) Cost of coal sales divided by tons sold. The cost of coal sales per ton only includes costs in our Eastern | ||||||
(4) East includes the Company's operations in Central Appalachia (CAPP) and Northern Appalachia (NAPP). | ||||||
(5) Weighted average total sales realization per ton less weighted average total cost of coal sales per ton. | ||||||
(6) Weighted average coal margin per ton divided by weighted average total sales realization per ton. | ||||||
(7) Amounts per ton calculated based on unrounded revenues, cost of coal sales and tons sold. | ||||||
(8) For the three months ended September 30, 2014, June 30, 2014, and September 30, 2013, and for the nine | ||||||
(9) Weighted average total sales realization per ton less adjusted weighted average total cost of coal sales per ton. | ||||||
(10) Adjusted weighted average coal margin per ton divided by weighted average total sales realization per ton. | ||||||
(11) Adjusted cost of coal sales per ton for our Eastern Operations reconciled to their unadjusted amounts is as | ||||||
Three months ended |
Nine months ended | |||||
September 30, |
June 30, |
September 30, |
September 30, |
September 30, | ||
Cost of coal sales per ton-East |
$ 62.32 |
$ 60.65 |
$ 74.93 |
$ 62.91 |
$ 73.60 | |
Impact of provision for regulatory costs |
- |
- |
- |
- |
(0.62) | |
Impact of employee benefit related expenses |
(0.47) |
- |
- |
(0.16) |
- | |
Impact of merger-related expenses |
(0.16) |
1.36 |
(0.41) |
0.39 |
(0.25) | |
Adjusted cost of coal sales per ton-East |
$ 61.69 |
$ 62.01 |
$ 74.52 |
$ 63.14 |
$ 72.73 | |
This information is intended to be reviewed in conjunction with the company's filings with the U.S. Securities and |
Alpha Natural Resources, Inc. and Subsidiaries | |||
Condensed Consolidated Balance Sheets and Supplemental Liquidity Data | |||
(In Thousands) | |||
(Unaudited) | |||
September 30, 2014 |
December 31, 2013 | ||
Cash and cash equivalents |
$ 809,411 |
$ 619,644 | |
Trade accounts receivable, net |
317,684 |
287,655 | |
Inventories, net |
305,285 |
304,863 | |
Short-term marketable securities |
374,528 |
337,069 | |
Prepaid expenses and other current assets |
264,425 |
439,193 | |
Total current assets |
2,071,333 |
1,988,424 | |
Property, equipment and mine development costs, net |
1,528,163 |
1,798,648 | |
Owned and leased mineral rights and land, net |
6,984,875 |
7,157,506 | |
Goodwill, net |
- |
308,651 | |
Long-term marketable securities |
170,479 |
- | |
Other non-current assets |
437,975 |
546,029 | |
Total assets |
$ 11,192,825 |
$ 11,799,258 | |
Current portion of long-term debt |
$ 176,945 |
$ 29,169 | |
Trade accounts payable |
245,311 |
234,951 | |
Accrued expenses and other current liabilities |
703,309 |
978,695 | |
Total current liabilities |
1,125,565 |
1,242,815 | |
Long-term debt |
3,714,976 |
3,398,434 | |
Pension and postretirement medical benefit obligations |
1,024,896 |
990,124 | |
Asset retirement obligations |
723,479 |
728,575 | |
Deferred income taxes |
828,070 |
901,552 | |
Other non-current liabilities |
455,296 |
465,892 | |
Total liabilities |
7,872,282 |
7,727,392 | |
Total stockholders' equity |
3,320,543 |
4,071,866 | |
Total liabilities and stockholders' equity |
$ 11,192,825 |
$ 11,799,258 | |
As of | |||
September 30, 2014 |
December 31, 2013 | ||
Liquidity ($ in 000's): |
|||
Cash and cash equivalents |
$ 809,411 |
$ 619,644 | |
Short-term marketable securities |
374,528 |
337,069 | |
Long-term marketable securities(1) |
170,479 |
- | |
Total cash, cash equivalents and marketable securities |
1,354,418 |
956,713 | |
Unused revolving credit and A/R securitization facilities(2) |
915,700 |
966,000 | |
Total liquidity |
$ 2,270,118 |
$ 1,922,713 | |
(1) Shares of Rice Energy Inc. are subject to customary lockup provisions which expire on November 11, 2014. | |||
(2) The revolving credit facility under our credit agreement is subject to a minimum liquidity requirement of $300 million. | |||
This information is intended to be reviewed in conjunction with the company's filings with the U.S. Securities and Exchange Commission. |
Alpha Natural Resources, Inc. and Subsidiaries | ||
Condensed Consolidated Statements of Cash Flows | ||
(In Thousands) | ||
(Unaudited) | ||
Nine Months Ended September 30, | ||
2014 |
2013 | |
Operating activities: |
||
Net loss |
$ (753,300) |
$ (754,710) |
Adjustments to reconcile net loss to net cash provided by (used in) |
||
operating activities: |
||
Depreciation, depletion, accretion and amortization |
647,298 |
733,282 |
Amortization of acquired intangibles, net |
27,909 |
908 |
Mark-to-market adjustments for derivatives |
4,641 |
1,312 |
Stock-based compensation |
21,170 |
18,360 |
Employee benefit plans, net |
43,879 |
43,352 |
Loss on early extinguishment of debt |
2,022 |
33,039 |
Deferred income taxes |
(4,785) |
(306,488) |
Gain on exchange of equity-method investment |
(250,331) |
- |
Gain on sale of marketable equity security |
(16,435) |
- |
Asset impairment and restructuring |
23,633 |
24,358 |
Goodwill impairment |
308,651 |
253,102 |
Other, net |
8,843 |
(16,020) |
Changes in operating assets and liabilities: |
||
Trade accounts receivable, net |
(30,029) |
118,216 |
Inventories, net |
(422) |
61,116 |
Prepaid expenses and other current assets |
80,882 |
30,728 |
Other non-current assets |
24,690 |
7,052 |
Trade accounts payable |
11,204 |
(28,332) |
Accrued expenses and other current liabilities |
(304,212) |
152,816 |
Pension and postretirement medical benefit obligations |
(31,752) |
(36,647) |
Asset retirement obligations |
(39,063) |
(31,519) |
Other non-current liabilities |
(11,206) |
(125,346) |
Net cash provided by (used in) operating activities |
(236,713) |
178,579 |
Investing activities: |
||
Capital expenditures |
(128,174) |
(163,129) |
Purchases of marketable securities |
(507,804) |
(738,800) |
Sales of marketable securities |
532,323 |
680,452 |
Proceeds from exchange of equity method investment, net |
96,732 |
- |
Other, net |
13,516 |
7,075 |
Net cash provided by (used in) investing activities |
6,593 |
(214,402) |
Financing activities: |
||
Proceeds from borrowings on long-term debt |
500,000 |
964,369 |
Principal repayments of long-term debt |
(35,993) |
(951,894) |
Principal repayments of capital lease obligations |
(13,028) |
(12,151) |
Debt issuance and modification costs |
(28,185) |
(24,317) |
Common stock repurchases |
(1,392) |
(1,352) |
Other |
(1,515) |
(1,453) |
Net cash provided by (used in) financing activities |
419,887 |
(26,798) |
Net increase (decrease) in cash and cash equivalents |
$ 189,767 |
$ (62,621) |
Cash and cash equivalents at beginning of period |
$ 619,644 |
$ 730,723 |
Cash and cash equivalents at end of period |
$ 809,411 |
$ 668,102 |
This information is intended to be reviewed in conjunction with the company's filings with the U. S. Securities and Exchange Commission. |
Alpha Natural Resources, Inc. and Subsidiaries | ||||||
Reconciliation of EBITDA and Adjusted EBITDA to Net Loss | ||||||
(In Thousands) | ||||||
(Unaudited) | ||||||
Three Months Ended |
Nine Months Ended September 30, | |||||
September 30, |
June 30, |
September 30, |
2014 |
2013 | ||
Net loss (1) |
$ (184,975) |
$ (512,627) |
$ (458,241) |
$ (753,300) |
$ (754,710) | |
Interest expense |
75,688 |
71,012 |
62,233 |
211,662 |
182,587 | |
Interest income |
(574) |
(540) |
(1,008) |
(1,730) |
(3,133) | |
Income tax (benefit) expense |
(43,938) |
(9,518) |
(143,137) |
(6,898) |
(309,022) | |
Depreciation, depletion and amortization |
170,895 |
191,072 |
196,292 |
562,262 |
650,021 | |
Amortization of acquired intangibles, net |
9,166 |
9,464 |
2,748 |
27,909 |
908 | |
EBITDA |
26,262 |
(251,137) |
(341,113) |
39,905 |
(233,349) | |
Goodwill impairment |
- |
308,651 |
253,102 |
308,651 |
253,102 | |
Asset impairment and restructuring |
11,544 |
2,590 |
2,017 |
23,633 |
24,358 | |
Change in fair value and settlement of derivative instruments |
8,987 |
(4,466) |
(1,865) |
11,058 |
(7,671) | |
Merger related expense (benefit) |
1,087 |
(5,990) |
119,824 |
1,595 |
122,725 | |
Provision for regulatory costs |
- |
- |
- |
- |
25,000 | |
Employee benefit related expense |
5,792 |
- |
- |
5,792 |
- | |
Loss on assets contributed to equity affiliate |
- |
- |
1,622 |
- |
10,117 | |
(Gain) loss on early extinguishment of debt |
- |
218 |
(158) |
2,022 |
33,039 | |
Adjusted EBITDA |
$ 53,672 |
$ 49,866 |
$ 33,429 |
$ 392,656 |
$ 227,321 | |
(1) For the nine months ended September 30, 2014, net loss includes a gain of $250.3 million from the exchange | ||||||
This information is intended to be reviewed in conjunction with the company's filings with the U.S. Securities and |
Alpha Natural Resources, Inc. and Subsidiaries | ||||||
Reconciliation of Adjusted Net Loss to Net Loss | ||||||
(In Thousands Except Shares and Per Share Data) | ||||||
(Unaudited) | ||||||
Three Months Ended |
Nine Months Ended September 30, | |||||
September 30, |
June 30, |
September 30, |
2014 |
2013 | ||
Net loss (1) |
$ (184,975) |
$ (512,627) |
$ (458,241) |
$ (753,300) |
$ (754,710) | |
Goodwill impairment |
- |
308,651 |
253,102 |
308,651 |
253,102 | |
Asset impairment and restructuring |
11,544 |
2,590 |
2,017 |
23,633 |
24,358 | |
Change in fair value and settlement of derivative instruments |
8,987 |
(4,466) |
(1,865) |
11,058 |
(7,671) | |
Merger related expense (benefit) |
1,087 |
(5,990) |
119,824 |
1,595 |
122,725 | |
Provision for regulatory costs |
- |
- |
- |
- |
25,000 | |
Employee benefit related expense |
5,792 |
- |
- |
5,792 |
- | |
Loss on assets contributed to equity affiliate |
- |
- |
1,622 |
- |
10,117 | |
Loss on early extinguishment of debt |
- |
218 |
(158) |
2,022 |
33,039 | |
Amortization of acquired intangibles, net |
9,166 |
9,464 |
2,748 |
27,909 |
908 | |
Estimated income tax effect of above adjustments |
(13,563) |
(677) |
(45,873) |
(26,787) |
(66,494) | |
Discrete tax charge from state statutory tax rate and apportionment change, net of federal tax impact |
- |
- |
(2,524) |
- |
(2,524) | |
Discrete tax charge (benefit) from valuation allowance adjustment |
43,655 |
87,485 |
(5,070) |
181,258 |
2,614 | |
Discrete tax benefit from reversal of reserves for uncertain tax positions |
- |
(8,090) |
- |
(8,090) |
- | |
Adjusted net loss |
$ (118,307) |
$ (123,442) |
$ (134,418) |
$ (226,259) |
$ (359,536) | |
Weighted average shares--diluted |
221,491,811 |
221,376,721 |
220,960,449 |
221,342,088 |
220,850,020 | |
Adjusted diluted income (loss) per common share |
$ (0.53) |
$ (0.56) |
$ (0.61) |
$ (1.02) |
$ (1.63) | |
(1) For the nine months ended September 30, 2014, net loss includes a gain of $250.3 million from the exchange of | ||||||
This information is intended to be reviewed in conjunction with the company's filings with the U.S. Securities and |
SOURCE Alpha Natural Resources, Inc.
Copyright 2014 PR Newswire
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