Alpha Reports Third Quarter 2022 Financial Results
- Posts net income from continuing operations of $251.8 million, or $14.21 per diluted share, for the quarter
- Reports third quarter Adjusted EBITDA of $294.9 million
- Generates quarterly operating cash flow of $497.0 million
- Announces 4.5 million tons of 2023 domestic sales commitments at an average price of $192.27 per ton
- Announces cumulative $452 million in buybacks through share repurchase program as of October 31, 2022
- Increases share buyback authorization to $1 billion from prior level of $600 million
- Announces one-time, special dividend of $5.00 per share
- Increases quarterly dividend amount to 41.8 cents per share
BRISTOL, Tenn., Nov. 7, 2022 /PRNewswire/ -- Alpha Metallurgical Resources, Inc. (NYSE: AMR), a leading U.S. supplier of metallurgical products for the steel industry, today reported results for the third quarter ending September 30, 2022.
(millions, except per share) | |||
Three months ended | |||
Sept. 30, 2022 | June 30, 2022 | Sept. 30, 2021 | |
Net income(1) | $251.8 | $575.4 | $83.7 |
Net income(1) per diluted share | $14.21 | $30.03 | $4.43 |
Adjusted EBITDA(2) | $294.9 | $694.5 | $148.2 |
Operating cash flow(3) | $497.0 | $465.9 | $96.0 |
Capital expenditures | ($33.3) | ($41.9) | ($22.3) |
Tons of coal sold | 4.1 | 4.3 | 4.7 |
__________________________________
1. | From continuing operations. |
2. | These are non-GAAP financial measures. A reconciliation of Net Income to Adjusted EBITDA is included in tables accompanying the financial schedules. |
3. | Includes discontinued operations. |
"Alpha's third quarter results represent another solid performance from our team," said David Stetson, Alpha's chair and chief executive officer. "Evident within this quarter's numbers is the natural impact of the coal indices' drop from their early-2022 historic highs. Even still, indices remain at levels that are considered very strong from a historical average perspective, and Alpha's nearly $300 million in Adjusted EBITDA for the quarter is likewise a strong showing for our company."
Stetson continued: "To further enhance our already-robust capital return efforts, I am pleased to announce that Alpha's board has approved a 400-million-dollar increase to the existing share repurchase authorization, bringing the total authorization to an impressive $1 billion. In addition, the board has increased the fixed dividend to 41.8 cents per share and approved a one-time, special dividend of five dollars per share in recognition of the extraordinarily positive performance of the Alpha team this year. We remain committed, as always, to prudently returning capital to shareholders."
Alpha reported net income from continuing operations of $251.8 million, or $14.21 per diluted share, for the third quarter 2022. In the second quarter of 2022, the company had net income from continuing operations of $575.4 million, or $30.03 per diluted share.
For the third quarter, total Adjusted EBITDA was $294.9 million, compared to $694.5 million in the second quarter 2022.
Coal Revenues | ||
(millions) | ||
Three months ended | ||
Sept. 30, 2022 | June 30, 2022 | |
Met Segment | $840.6 | $1,318.7 |
All Other | $27.2 | $15.6 |
Met Segment (excl. freight & handling)(1) | $718.1 | $1,162.1 |
All Other (excl. freight & handling)(1) | $27.2 | $15.6 |
Tons Sold | (millions) | |
Three months ended | ||
Sept. 30, 2022 | June 30, 2022 | |
Met Segment | 3.9 | 4.1 |
All Other | 0.2 | 0.3 |
__________________________________
1. | Represents Non-GAAP coal revenues which is defined and reconciled under "Non-GAAP Financial Measures" and "Results of Operations." |
Coal Sales Realization(1) | ||
(per ton) | ||
Three months ended | ||
Sept. 30, 2022 | June 30, 2022 | |
Met Segment | $184.31 | $286.95 |
All Other | $109.27 | $61.41 |
__________________________________
1. | Represents Non-GAAP coal sales realization which is defined and reconciled under "Non-GAAP Financial Measures" and "Results of Operations." |
Third quarter net realized pricing for the Met segment was $184.31 per ton and net realization in the All Other category was $109.27. Met segment realizations for the third quarter, as compared to first half realizations, reflect the downward movement of coal indices off their historic highs in early 2022.
The table below provides a breakdown of our Met segment coal sold in the third quarter by pricing mechanism.
(in millions, except per ton data) | ||||
Met Segment Sales | Three months ended Sept. 30, 2022 | |||
Tons Sold | Coal Revenues | Realization/ton(1) | % of Met Tons Sold | |
Export - Other Pricing Mechanisms | 1.4 | $299.2 | $208.81 | 41 % |
Domestic | 0.9 | $189.2 | $200.24 | 27 % |
Export - Australian Indexed | 1.1 | $184.8 | $161.58 | 32 % |
Total Met Coal Revenues | 3.5 | $673.3 | $191.17 | 100 % |
Thermal Coal Revenues | 0.4 | $44.8 | $119.69 | |
Total Met Segment Coal Revenues (excl. freight & handling)(1) | 3.9 | $718.1 | $184.31 | |
__________________________________
1. | Represents Non-GAAP coal sales realization which is defined and reconciled under "Non-GAAP Financial Measures" and "Results of Operations." |
Cost of Coal Sales | ||
(in millions, except per ton data) | ||
Three months ended | ||
Sept. 30, 2022 | June 30, 2022 | |
Cost of Coal Sales | $555.5 | $625.9 |
Cost of Coal Sales (excl. freight & handling/idle)(1) | $425.4 | $463.7 |
(per ton) | ||
Met Segment(1) | $104.86 | $111.36 |
All Other(1) | $67.48 | $49.90 |
__________________________________
1. | Represents Non-GAAP cost of coal sales and Non-GAAP cost of coal sales per ton which is defined and reconciled under "Non-GAAP Financial Measures" and "Results of Operations." |
Alpha's third quarter Met segment cost of coal sales decreased to an average of $104.86 per ton, with reduced sales-related costs from royalties and severance taxes accounting for the drop from the second quarter level of $111.36. Cost of coal sales for the All Other category increased to $67.48 per ton in the third quarter 2022 against an average cost of $49.90 per ton in the second quarter 2022. The higher costs in third quarter are attributable to higher sales-related costs and the impacts of late-stage mining at our Slabcamp mine.
Cash provided by operating activities in the third quarter increased to $497.0 million as compared to $465.9 million in the second quarter 2022. Cash provided by operating activities includes discontinued operations. Capital expenditures for the third quarter 2022 were $33.3 million compared to $41.9 million for the second quarter of 2022.
As of September 30, 2022, Alpha had $404.4 million in unrestricted cash and $150.8 million in restricted cash, deposits and investments. Total long-term debt, including the current portion of long-term debt as of September 30, 2022, was $4.7 million. At the end of the third quarter, the company had total liquidity of $495.5 million, including cash and cash equivalents of $404.4 million and $91.1 million of unused availability under the ABL. The future available capacity under the ABL is subject to inventory and accounts receivable collateral requirements and the maintenance of certain financial ratios. As of September 30, 2022, the company had no borrowings and $63.9 million in letters of credit outstanding under the ABL.
On September 13, 2022, Alpha announced that the company has committed approximately 4.5 million tons of metallurgical coal to domestic customers for shipment in the calendar year 2023. Those 4.5 million tons are committed at an average price of $192.27 per ton.
"As we advance through our budgeting process to finalize our expectations for the coming year, we are pleased to have a firm foundation of 4.5 million tons of domestically-committed coal on which we can continue to build," said Andy Eidson, Alpha's president. "Our sales team continues to do an excellent job of working with new and longstanding customers, and we are taking a close look at the full scope of international opportunities available to Alpha in 2023. Together in coordination with our operations teams, we will round out our guidance projections and plans for 2023. We are optimistic about Alpha's outlook for next year and we will provide more detail around our 2023 expectations in the coming weeks."
On November 4, 2022, Alpha's board of directors declared a quarterly cash dividend payment of $0.418 per share, increased from the prior level of $0.392 per share, which will become payable on January 3, 2023 for holders of record as of December 15, 2022. Alpha's board also declared a one-time, special dividend of $5.00 per share, also payable on January 3, 2023 for holders of record as of December 15, 2022.
Any decision to pay future cash dividends will be made by the board and depend on Alpha's future earnings and financial condition and other relevant factors.
As previously announced, Alpha's board of directors authorized a share repurchase program allowing for the expenditure of up to $600 million for the repurchase of the company's common stock. On November 4, Alpha's board increased this authorization by $400 million, bringing the total authorization to $1 billion. As of October 31, 2022, the company has acquired 3.1 million shares of common stock at a cost of $452 million, which has reduced the outstanding share count by roughly 14 percent from the time the program began. The number of common stock shares outstanding as of October 31, 2022 is 15,943,649.
The timing and amount of share repurchases will continue to be determined by the company's management based on its evaluation of market conditions, the trading price of the stock, applicable legal requirements, compliance with the provisions of the company's debt agreements, and other factors.
As of October 28, 2022, Alpha has committed and priced approximately 87% of its metallurgical coal within the Met segment at an average price of $243.30 per ton and 100% of thermal coal in the Met segment at an average expected price of $97.43 per ton. In the All Other category the company is 100% committed and priced at an average price of $77.69 per ton.
2022 Guidance | ||
in millions of tons | Low | High |
Metallurgical | 14.0 | 15.0 |
Thermal | 1.0 | 1.4 |
Met Segment | 15.0 | 16.4 |
All Other | 0.6 | 0.8 |
Total Shipments | 15.6 | 17.2 |
Committed/Priced1,2,3 | Committed | Average Price |
Metallurgical - Domestic | $192.03 | |
Metallurgical - Export | $265.02 | |
Metallurgical Total | 87 % | $243.30 |
Thermal | 100 % | $97.43 |
Met Segment | 89 % | $228.76 |
All Other | 100 % | $77.69 |
Committed/Unpriced1,3 | Committed | |
Metallurgical Total | 13 % | |
Thermal | — % | |
Met Segment | 11 % | |
All Other | — % | |
Costs per ton4 | Low | High |
Met Segment | $101.00 | $107.00 |
All Other | $58.00 | $62.00 |
In millions (except taxes) | Low | High |
SG&A5 | $55 | $59 |
Idle Operations Expense | $30 | $40 |
Cash Interest Expense | $18 | $22 |
DD&A | $90 | $110 |
Capital Expenditures | $160 | $190 |
Tax Rate6 | 5 % | 15 % |
Notes: | |
1. | Based on committed and priced coal shipments as of October 28, 2022. Committed percentage based on the midpoint of shipment guidance range. |
2. | Actual average per-ton realizations on committed and priced tons recognized in future periods may vary based on actual freight expense in future periods relative to assumed freight expense embedded in projected average per-ton realizations. |
3. | Includes estimates of future coal shipments based upon contract terms and anticipated delivery schedules. Actual coal shipments may vary from these estimates. |
4. | Note: The Company is unable to present a quantitative reconciliation of its forward-looking non-GAAP cost of coal sales per ton sold financial measures to the most directly comparable GAAP measures without unreasonable efforts due to the inherent difficulty in forecasting and quantifying with reasonable accuracy significant items required for the reconciliation. The most directly comparable GAAP measure, GAAP cost of sales, is not accessible without unreasonable efforts on a forward-looking basis. The reconciling items include freight and handling costs, which are a component of GAAP cost of sales. Management is unable to predict without unreasonable efforts freight and handling costs due to uncertainty as to the end market and FOB point for uncommitted sales volumes and the final shipping point for export shipments. These amounts have historically varied and may continue to vary significantly from quarter to quarter and material changes to these items could have a significant effect on our future GAAP results. |
5. | Excludes expenses related to non-cash stock compensation and non-recurring expenses. |
6. | Rate assumes no further ownership change limitations on the usage of net operating losses. |
The company plans to hold a conference call regarding its third quarter 2022 results on November 7, 2022, at 10:00 a.m. Eastern time. The conference call will be available live on the investor section of the company's website at https://investors.alphametresources.com/investors. Analysts who would like to participate in the conference call should dial 877-407-0832 (domestic toll-free) or 201-689-8433 (international) approximately 15 minutes prior to start time.
Alpha Metallurgical Resources (NYSE: AMR) is a Tennessee-based mining company with operations across Virginia and West Virginia. With customers across the globe, high-quality reserves and significant port capacity, Alpha reliably supplies metallurgical products to the steel industry. For more information, visit www.AlphaMetResources.com.
This news release includes forward-looking statements. 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. 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 Alpha. Except as required by law, Alpha has no duty to, and does not intend to, update or revise the forward-looking statements in this news release or elsewhere after the date this release is issued. In light of these risks and uncertainties, investors should keep in mind that results, events or developments discussed in any forward-looking statement made in this news release may not occur.
Investor & Media Contact: Emily O'Quinn
InvestorRelations@AlphaMetResources.com
CorporateCommunications@AlphaMetResources.com
(423) 573-0369
The discussion below contains "non-GAAP financial measures." These are financial measures which either exclude or include amounts that are not excluded or included in the most directly comparable measures calculated and presented in accordance with generally accepted accounting principles in the United States ("U.S. GAAP" or "GAAP"). Specifically, we make use of the non-GAAP financial measures "Adjusted EBITDA," "non-GAAP coal revenues," "non-GAAP cost of coal sales," "non-GAAP coal margin," and "Adjusted cost of produced coal sold." We use Adjusted EBITDA to measure the operating performance of our segments and allocate resources to the segments. Adjusted EBITDA does not purport to be an alternative to net income (loss) as a measure of operating performance or any other measure of operating results or liquidity presented in accordance with GAAP. We use non-GAAP coal revenues to present coal revenues generated, excluding freight and handling fulfillment revenues. Non-GAAP coal sales realization per ton for our operations is calculated as non-GAAP coal revenues divided by tons sold. We use non-GAAP cost of coal sales to adjust cost of coal sales to remove freight and handling costs, depreciation, depletion and amortization - production (excluding the depreciation, depletion and amortization related to selling, general and administrative functions), accretion on asset retirement obligations, amortization of acquired intangibles, net, and idled and closed mine costs. Non-GAAP cost of coal sales per ton for our operations is calculated as non-GAAP cost of coal sales divided by tons sold. Non-GAAP coal margin per ton for our coal operations is calculated as non-GAAP coal sales realization per ton for our coal operations less non-GAAP cost of coal sales per ton for our coal operations. We also use Adjusted cost of produced coal sold to distinguish the cost of captive produced coal from the effects of purchased coal. The presentation of these measures should not be considered in isolation, or as a substitute for analysis of our results as reported under GAAP.
Management uses non-GAAP financial measures to supplement GAAP results to provide a more complete understanding of the factors and trends affecting the business than GAAP results alone. 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 and to adjust for items that may not reflect the trend of future results by excluding transactions that are not indicative of our core operating performance. Furthermore, analogous measures are used by industry analysts to evaluate the Company's operating performance. Because not all companies use identical calculations, the presentations of these measures may not be comparable to other similarly titled measures of other companies and can differ significantly from company to company depending on long-term strategic decisions regarding capital structure, the tax jurisdictions in which companies operate, and capital investments.
Included below are reconciliations of non-GAAP financial measures to GAAP financial measures.
ALPHA METALLURGICAL RESOURCES, INC. AND SUBSIDIARIES | |||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) | |||||||
(Amounts in thousands, except share and per share data) | |||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||
2022 | 2021 | 2022 | 2021 | ||||
Revenues: | |||||||
Coal revenues | $ 867,849 | $ 647,129 | $ 3,271,845 | $ 1,426,039 | |||
Other revenues | 1,919 | 1,712 | 6,299 | 4,330 | |||
Total revenues | 869,768 | 648,841 | 3,278,144 | 1,430,369 | |||
Costs and expenses: | |||||||
Cost of coal sales (exclusive of items | 555,502 | 488,169 | 1,736,711 | 1,182,360 | |||
Depreciation, depletion and amortization | 27,925 | 24,519 | 83,690 | 80,261 | |||
Accretion on asset retirement obligations | 5,921 | 6,674 | 17,822 | 19,970 | |||
Amortization of acquired intangibles, net | 4,543 | 2,980 | 16,038 | 9,402 | |||
Asset impairment and restructuring | — | — | — | (561) | |||
Selling, general and administrative | 15,095 | 15,264 | 48,339 | 44,891 | |||
Total other operating loss (income): | |||||||
Mark-to-market adjustment for | (2,954) | 11,676 | 10,615 | 18,009 | |||
Other expense (income) | 2,713 | (457) | 569 | (5,290) | |||
Total costs and expenses | 608,745 | 548,825 | 1,913,784 | 1,349,042 | |||
Income from operations | 261,023 | 100,016 | 1,364,360 | 81,327 | |||
Other (expense) income: | |||||||
Interest expense | (1,695) | (17,338) | (19,996) | (53,290) | |||
Interest income | 1,064 | 54 | 1,412 | 322 | |||
Equity loss in affiliates | (4,821) | (643) | (8,318) | (1,161) | |||
Miscellaneous income, net | 1,702 | 1,812 | 4,884 | 5,425 | |||
Total other expense, net | (3,750) | (16,115) | (22,018) | (48,704) | |||
Income from continuing operations before | 257,273 | 83,901 | 1,342,342 | 32,623 | |||
Income tax expense | (5,437) | (208) | (114,073) | (211) | |||
Net income from continuing operations | 251,836 | 83,693 | 1,228,269 | 32,412 | |||
Discontinued operations: | |||||||
Income (loss) from discontinued operations | 1,273 | (429) | (525) | (1,067) | |||
Income tax (expense) benefit from | (292) | — | 121 | — | |||
Income (loss) from discontinued operations | 981 | (429) | (404) | (1,067) | |||
Net income | $ 252,817 | $ 83,264 | $ 1,227,865 | $ 31,345 | |||
Basic income per common share: | |||||||
Income from continuing operations | $ 14.71 | $ 4.54 | $ 68.16 | $ 1.76 | |||
Income (loss) from discontinued operations | 0.06 | (0.03) | (0.02) | (0.06) | |||
Net income | $ 14.77 | $ 4.51 | $ 68.14 | $ 1.70 | |||
Diluted income per common share: | |||||||
Income from continuing operations | $ 14.21 | $ 4.43 | $ 65.33 | $ 1.73 | |||
Income (loss) from discontinued operations | 0.06 | (0.03) | (0.02) | (0.06) | |||
Net income | $ 14.27 | $ 4.40 | $ 65.31 | $ 1.67 | |||
Weighted average shares – basic | 17,119,328 | 18,445,709 | 18,019,161 | 18,426,639 | |||
Weighted average shares – diluted | 17,718,517 | 18,913,352 | 18,800,674 | 18,783,643 | |||
ALPHA METALLURGICAL RESOURCES, INC. AND SUBSIDIARIES | |||
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) | |||
(Amounts in thousands, except share and per share data) | |||
September 30, 2022 | December 31, 2021 | ||
Assets | |||
Current assets: | |||
Cash and cash equivalents | $ 404,430 | $ 81,211 | |
Trade accounts receivable, net of allowance for doubtful accounts of $375 and $393 as of | 487,352 | 489,241 | |
Inventories, net | 178,559 | 129,382 | |
Prepaid expenses and other current assets | 76,999 | 47,690 | |
Current assets - discontinued operations | 57 | 462 | |
Total current assets | 1,147,397 | 747,986 | |
Property, plant, and equipment, net of accumulated depreciation and amortization of | 404,171 | 362,218 | |
Owned and leased mineral rights, net of accumulated depletion and amortization of | 423,763 | 444,302 | |
Other acquired intangibles, net of accumulated amortization of $50,259 and $34,221 as | 58,561 | 74,197 | |
Long-term restricted investments | 92,384 | 28,443 | |
Long-term restricted cash | 31,724 | 89,426 | |
Other non-current assets | 93,332 | 102,614 | |
Non-current assets - discontinued operations | 8,521 | 8,526 | |
Total assets | $ 2,259,853 | $ 1,857,712 | |
Liabilities and Stockholders' Equity | |||
Current liabilities: | |||
Current portion of long-term debt | $ 1,711 | $ 2,989 | |
Trade accounts payable | 101,584 | 90,090 | |
Acquisition-related obligations – current | 30,131 | 22,405 | |
Accrued expenses and other current liabilities | 203,902 | 174,607 | |
Current liabilities - discontinued operations | 4,014 | 5,838 | |
Total current liabilities | 341,342 | 295,929 | |
Long-term debt | 2,987 | 445,562 | |
Acquisition-related obligations - long-term | — | 19,000 | |
Workers' compensation and black lung obligations | 200,827 | 208,193 | |
Pension obligations | 152,184 | 159,930 | |
Asset retirement obligations | 135,082 | 132,013 | |
Deferred income taxes | 11,723 | 317 | |
Other non-current liabilities | 20,794 | 26,176 | |
Non-current liabilities - discontinued operations | 23,245 | 23,683 | |
Total liabilities | 888,184 | 1,310,803 | |
Commitments and Contingencies | |||
Stockholders' Equity | |||
Preferred stock - par value $0.01, 5.0 million shares authorized, none issued | — | — | |
Common stock - par value $0.01, 50.0 million shares authorized, 21.6 million issued and | 217 | 208 | |
Additional paid-in capital | 811,012 | 784,743 | |
Accumulated other comprehensive loss | (60,886) | (58,503) | |
Treasury stock, at cost: 5.3 million shares at September 30, 2022 and 2.4 million shares | (521,094) | (107,800) | |
Retained earnings (accumulated deficit) | 1,142,420 | (71,739) | |
Total stockholders' equity | 1,371,669 | 546,909 | |
Total liabilities and stockholders' equity | $ 2,259,853 | $ 1,857,712 | |
ALPHA METALLURGICAL RESOURCES, INC. AND SUBSIDIARIES | |||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) | |||
(Amounts in thousands) | |||
Nine Months Ended September 30, | |||
2022 | 2021 | ||
Operating activities: | |||
Net income | $ 1,227,865 | $ 31,345 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation, depletion and amortization | 83,690 | 80,261 | |
Amortization of acquired intangibles, net | 16,038 | 9,402 | |
Amortization of debt issuance costs and accretion of debt discount | 7,757 | 9,351 | |
Mark-to-market adjustment for acquisition-related obligations | 10,615 | 18,009 | |
Gain on disposal of assets | (2,607) | (5,342) | |
Accretion on asset retirement obligations | 17,822 | 19,970 | |
Employee benefit plans, net | 1,312 | 6,685 | |
Deferred income taxes | 11,406 | (1) | |
Stock-based compensation | 4,103 | 4,351 | |
Equity loss in affiliates | 8,318 | 1,161 | |
Other, net | 432 | (3,938) | |
Changes in operating assets and liabilities | (87,714) | (100,681) | |
Net cash provided by operating activities | 1,299,037 | 70,573 | |
Investing activities: | |||
Capital expenditures | (103,351) | (60,386) | |
Proceeds on disposal of assets | 3,010 | 7,471 | |
Purchases of investment securities | (181,539) | (15,474) | |
Maturity of investment securities | 117,380 | 10,508 | |
Capital contributions to equity affiliates | (13,832) | (4,473) | |
Other, net | (4,232) | 52 | |
Net cash used in investing activities | (182,564) | (62,302) | |
Financing activities: | |||
Repurchases of long-term debt | — | (18,415) | |
Principal repayments of long-term debt | (450,484) | (61,869) | |
Dividend and dividend equivalents paid | (6,807) | — | |
Common stock repurchases and related expenses | (391,166) | (786) | |
Proceeds from exercise of warrants | 4,771 | — | |
Other, net | (447) | (1,846) | |
Net cash used in financing activities | (844,133) | (82,916) | |
Net increase (decrease) in cash and cash equivalents and restricted cash | 272,340 | (74,645) | |
Cash and cash equivalents and restricted cash at beginning of period | 182,614 | 244,571 | |
Cash and cash equivalents and restricted cash at end of period | $ 454,954 | $ 169,926 | |
The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the Condensed Consolidated Balance Sheets that sum to the total of the same such amounts shown in the Condensed Consolidated Statements of Cash Flows.
As of September 30, | |||
2022 | 2021 | ||
Cash and cash equivalents | $ 404,430 | $ 78,283 | |
Short-term restricted cash (included in Prepaid expenses and other current assets) | 18,800 | 7,642 | |
Long-term restricted cash | 31,724 | 84,001 | |
Total cash and cash equivalents and restricted cash shown in the Condensed Consolidated Statements of Cash Flows | $ 454,954 | $ 169,926 | |
ALPHA METALLURGICAL RESOURCES, INC. AND SUBSIDIARIES | |||||||||
ADJUSTED EBITDA RECONCILIATION | |||||||||
(Amounts in thousands) | |||||||||
Three Months Ended | Nine Months Ended September 30, | ||||||||
June 30, 2022 | September 30, 2022 | September 30, 2021 | 2022 | 2021 | |||||
Net income from continuing | $ 575,429 | $ 251,836 | $ 83,693 | $ 1,228,269 | $ 32,412 | ||||
Interest expense | 5,218 | 1,695 | 17,338 | 19,996 | 53,290 | ||||
Interest income | (164) | (1,064) | (54) | (1,412) | (322) | ||||
Income tax expense | 69,012 | 5,437 | 208 | 114,073 | 211 | ||||
Depreciation, depletion and | 27,730 | 27,925 | 24,519 | 83,690 | 80,261 | ||||
Non-cash stock compensation | 1,401 | 1,520 | 1,189 | 4,103 | 4,351 | ||||
Mark-to-market adjustment - | 4,208 | (2,954) | 11,676 | 10,615 | 18,009 | ||||
Accretion on asset retirement | 5,947 | 5,921 | 6,674 | 17,822 | 19,970 | ||||
Asset impairment and restructuring | — | — | — | — | (561) | ||||
Amortization of acquired intangibles, | 5,747 | 4,543 | 2,980 | 16,038 | 9,402 | ||||
Adjusted EBITDA | $ 694,528 | $ 294,859 | $ 148,223 | $ 1,493,194 | $ 217,023 | ||||
ALPHA METALLURGICAL RESOURCES, INC. AND SUBSIDIARIES | |||||
RESULTS OF OPERATIONS | |||||
Three Months Ended June 30, 2022 | |||||
(In thousands, except for per ton data) | Met | All Other | Consolidated | ||
Coal revenues | $ 1,318,661 | $ 15,597 | $ 1,334,258 | ||
Less: Freight and handling fulfillment revenues | (156,522) | — | (156,522) | ||
Non-GAAP Coal revenues | $ 1,162,139 | $ 15,597 | $ 1,177,736 | ||
Tons sold | 4,050 | 254 | 4,304 | ||
Non-GAAP Coal sales realization per ton | $ 286.95 | $ 61.41 | $ 273.64 | ||
Cost of coal sales (exclusive of items shown separately below) | $ 610,224 | $ 15,668 | $ 625,892 | ||
Depreciation, depletion and amortization - production (1) | 27,202 | 250 | 27,452 | ||
Accretion on asset retirement obligations | 3,390 | 2,557 | 5,947 | ||
Amortization of acquired intangibles, net | 4,795 | 952 | 5,747 | ||
Total Cost of coal sales | $ 645,611 | $ 19,427 | $ 665,038 | ||
Less: Freight and handling costs | (156,522) | — | (156,522) | ||
Less: Depreciation, depletion and amortization - production (1) | (27,202) | (250) | (27,452) | ||
Less: Accretion on asset retirement obligations | (3,390) | (2,557) | (5,947) | ||
Less: Amortization of acquired intangibles, net | (4,795) | (952) | (5,747) | ||
Less: Idled and closed mine costs | (2,708) | (2,993) | (5,701) | ||
Non-GAAP Cost of coal sales | $ 450,994 | $ 12,675 | $ 463,669 | ||
Tons sold | 4,050 | 254 | 4,304 | ||
Non-GAAP Cost of coal sales per ton | $ 111.36 | $ 49.90 | $ 107.73 | ||
(1) | Depreciation, depletion and amortization - production excludes the depreciation, depletion and amortization related to selling, general and administrative functions. |
Three Months Ended June 30, 2022 | |||||
(In thousands, except for per ton data) | Met | All Other | Consolidated | ||
Coal revenues | $ 1,318,661 | $ 15,597 | $ 1,334,258 | ||
Less: Total Cost of coal sales (per table above) | (645,611) | (19,427) | (665,038) | ||
GAAP Coal margin | $ 673,050 | $ (3,830) | $ 669,220 | ||
Tons sold | 4,050 | 254 | 4,304 | ||
GAAP Coal margin per ton | $ 166.19 | $ (15.08) | $ 155.49 | ||
GAAP Coal margin | $ 673,050 | $ (3,830) | $ 669,220 | ||
Add: Depreciation, depletion and amortization - production (1) | 27,202 | 250 | 27,452 | ||
Add: Accretion on asset retirement obligations | 3,390 | 2,557 | 5,947 | ||
Add: Amortization of acquired intangibles, net | 4,795 | 952 | 5,747 | ||
Add: Idled and closed mine costs | 2,708 | 2,993 | 5,701 | ||
Non-GAAP Coal margin | $ 711,145 | $ 2,922 | $ 714,067 | ||
Tons sold | 4,050 | 254 | 4,304 | ||
Non-GAAP Coal margin per ton | $ 175.59 | $ 11.50 | $ 165.91 | ||
(1) | Depreciation, depletion and amortization - production excludes the depreciation, depletion and amortization related to selling, general and administrative functions. |
Three Months Ended September 30, 2022 | |||||
(In thousands, except for per ton data) | Met | All Other | Consolidated | ||
Coal revenues | $ 840,638 | $ 27,211 | $ 867,849 | ||
Less: Freight and handling fulfillment revenues | (122,585) | (3) | (122,588) | ||
Non-GAAP Coal revenues | $ 718,053 | $ 27,208 | $ 745,261 | ||
Tons sold | 3,896 | 249 | 4,145 | ||
Non-GAAP Coal sales realization per ton | $ 184.31 | $ 109.27 | $ 179.80 | ||
Cost of coal sales (exclusive of items shown separately below) | $ 534,718 | $ 20,784 | $ 555,502 | ||
Depreciation, depletion and amortization - production (1) | 26,747 | 906 | 27,653 | ||
Accretion on asset retirement obligations | 3,390 | 2,531 | 5,921 | ||
Amortization of acquired intangibles, net | 3,591 | 952 | 4,543 | ||
Total Cost of coal sales | $ 568,446 | $ 25,173 | $ 593,619 | ||
Less: Freight and handling costs | (122,585) | (3) | (122,588) | ||
Less: Depreciation, depletion and amortization - production (1) | (26,747) | (906) | (27,653) | ||
Less: Accretion on asset retirement obligations | (3,390) | (2,531) | (5,921) | ||
Less: Amortization of acquired intangibles, net | (3,591) | (952) | (4,543) | ||
Less: Idled and closed mine costs | (3,580) | (3,978) | (7,558) | ||
Non-GAAP Cost of coal sales | $ 408,553 | $ 16,803 | $ 425,356 | ||
Tons sold | 3,896 | 249 | 4,145 | ||
Non-GAAP Cost of coal sales per ton | $ 104.86 | $ 67.48 | $ 102.62 | ||
(1) | Depreciation, depletion and amortization - production excludes the depreciation, depletion and amortization related to selling, general and administrative functions. |
Three Months Ended September 30, 2022 | |||||
(In thousands, except for per ton data) | Met | All Other | Consolidated | ||
Coal revenues | $ 840,638 | $ 27,211 | $ 867,849 | ||
Less: Total Cost of coal sales (per table above) | (568,446) | (25,173) | (593,619) | ||
GAAP Coal margin | $ 272,192 | $ 2,038 | $ 274,230 | ||
Tons sold | 3,896 | 249 | 4,145 | ||
GAAP Coal margin per ton | $ 69.86 | $ 8.18 | $ 66.16 | ||
GAAP Coal margin | $ 272,192 | $ 2,038 | $ 274,230 | ||
Add: Depreciation, depletion and amortization - production (1) | 26,747 | 906 | 27,653 | ||
Add: Accretion on asset retirement obligations | 3,390 | 2,531 | 5,921 | ||
Add: Amortization of acquired intangibles, net | 3,591 | 952 | 4,543 | ||
Add: Idled and closed mine costs | 3,580 | 3,978 | 7,558 | ||
Non-GAAP Coal margin | $ 309,500 | $ 10,405 | $ 319,905 | ||
Tons sold | 3,896 | 249 | 4,145 | ||
Non-GAAP Coal margin per ton | $ 79.44 | $ 41.79 | $ 77.18 | ||
(1) | Depreciation, depletion and amortization - production excludes the depreciation, depletion and amortization related to selling, general and administrative functions. |
Three Months Ended September 30, 2021 | |||||
(In thousands, except for per ton data) | Met | All Other | Consolidated | ||
Coal revenues | $ 625,387 | $ 21,742 | $ 647,129 | ||
Less: Freight and handling fulfillment revenues | (128,192) | (18) | (128,210) | ||
Non-GAAP Coal revenues | $ 497,195 | $ 21,724 | $ 518,919 | ||
Tons sold | 4,380 | 348 | 4,728 | ||
Non-GAAP Coal sales realization per ton | $ 113.51 | $ 62.43 | $ 109.75 | ||
Cost of coal sales (exclusive of items shown separately below) | $ 468,706 | $ 19,463 | $ 488,169 | ||
Depreciation, depletion and amortization - production (1) | 23,181 | 1,160 | 24,341 | ||
Accretion on asset retirement obligations | 3,408 | 3,266 | 6,674 | ||
Amortization of acquired intangibles, net | 3,063 | (83) | 2,980 | ||
Total Cost of coal sales | $ 498,358 | $ 23,806 | $ 522,164 | ||
Less: Freight and handling costs | (128,192) | (18) | (128,210) | ||
Less: Depreciation, depletion and amortization - production (1) | (23,181) | (1,160) | (24,341) | ||
Less: Accretion on asset retirement obligations | (3,408) | (3,266) | (6,674) | ||
Less: Amortization of acquired intangibles, net | (3,063) | 83 | (2,980) | ||
Less: Idled and closed mine costs | (4,932) | (2,927) | (7,859) | ||
Non-GAAP Cost of coal sales | $ 335,582 | $ 16,518 | $ 352,100 | ||
Tons sold | 4,380 | 348 | 4,728 | ||
Non-GAAP Cost of coal sales per ton | $ 76.62 | $ 47.47 | $ 74.47 | ||
(1) | Depreciation, depletion and amortization - production excludes the depreciation, depletion and amortization related to selling, general and administrative functions. |
Three Months Ended September 30, 2021 | |||||
(In thousands, except for per ton data) | Met | All Other | Consolidated | ||
Coal revenues | $ 625,387 | $ 21,742 | $ 647,129 | ||
Less: Total Cost of coal sales (per table above) | (498,358) | (23,806) | (522,164) | ||
GAAP Coal margin | $ 127,029 | $ (2,064) | $ 124,965 | ||
Tons sold | 4,380 | 348 | 4,728 | ||
GAAP Coal margin per ton | $ 29.00 | $ (5.93) | $ 26.43 | ||
GAAP Coal margin | $ 127,029 | $ (2,064) | $ 124,965 | ||
Add: Depreciation, depletion and amortization - production (1) | 23,181 | 1,160 | 24,341 | ||
Add: Accretion on asset retirement obligations | 3,408 | 3,266 | 6,674 | ||
Add: Amortization of acquired intangibles, net | 3,063 | (83) | 2,980 | ||
Add: Idled and closed mine costs | 4,932 | 2,927 | 7,859 | ||
Non-GAAP Coal margin | $ 161,613 | $ 5,206 | $ 166,819 | ||
Tons sold | 4,380 | 348 | 4,728 | ||
Non-GAAP Coal margin per ton | $ 36.90 | $ 14.96 | $ 35.28 | ||
(1) | Depreciation, depletion and amortization - production excludes the depreciation, depletion and amortization related to selling, general and administrative functions. |
Nine Months Ended September 30, 2022 | |||||
(In thousands, except for per ton data) | Met | All Other | Consolidated | ||
Coal revenues | $ 3,213,639 | $ 58,206 | $ 3,271,845 | ||
Less: Freight and handling fulfillment revenues | (423,132) | (21) | (423,153) | ||
Non-GAAP Coal revenues | $ 2,790,507 | $ 58,185 | $ 2,848,692 | ||
Tons sold | 11,726 | 771 | 12,497 | ||
Non-GAAP Coal sales realization per ton | $ 237.98 | $ 75.47 | $ 227.95 | ||
Cost of coal sales (exclusive of items shown separately below) | $ 1,684,224 | $ 52,487 | $ 1,736,711 | ||
Depreciation, depletion and amortization - production (1) | 81,009 | 1,953 | 82,962 | ||
Accretion on asset retirement obligations | 10,178 | 7,644 | 17,822 | ||
Amortization of acquired intangibles, net | 13,182 | 2,856 | 16,038 | ||
Total Cost of coal sales | $ 1,788,593 | $ 64,940 | $ 1,853,533 | ||
Less: Freight and handling costs | (423,132) | (21) | (423,153) | ||
Less: Depreciation, depletion and amortization - production (1) | (81,009) | (1,953) | (82,962) | ||
Less: Accretion on asset retirement obligations | (10,178) | (7,644) | (17,822) | ||
Less: Amortization of acquired intangibles, net | (13,182) | (2,856) | (16,038) | ||
Less: Idled and closed mine costs | (9,892) | (9,617) | (19,509) | ||
Non-GAAP Cost of coal sales | $ 1,251,200 | $ 42,849 | $ 1,294,049 | ||
Tons sold | 11,726 | 771 | 12,497 | ||
Non-GAAP Cost of coal sales per ton | $ 106.70 | $ 55.58 | $ 103.55 | ||
(1) | Depreciation, depletion and amortization - production excludes the depreciation, depletion and amortization related to selling, general and administrative functions. |
Nine Months Ended September 30, 2022 | |||||
(In thousands, except for per ton data) | Met | All Other | Consolidated | ||
Coal revenues | $ 3,213,639 | $ 58,206 | $ 3,271,845 | ||
Less: Total Cost of coal sales (per table above) | (1,788,593) | (64,940) | (1,853,533) | ||
GAAP Coal margin | $ 1,425,046 | $ (6,734) | $ 1,418,312 | ||
Tons sold | 11,726 | 771 | 12,497 | ||
GAAP Coal margin per ton | $ 121.53 | $ (8.73) | $ 113.49 | ||
GAAP Coal margin | $ 1,425,046 | $ (6,734) | $ 1,418,312 | ||
Add: Depreciation, depletion and amortization - production (1) | 81,009 | 1,953 | 82,962 | ||
Add: Accretion on asset retirement obligations | 10,178 | 7,644 | 17,822 | ||
Add: Amortization of acquired intangibles, net | 13,182 | 2,856 | 16,038 | ||
Add: Idled and closed mine costs | 9,892 | 9,617 | 19,509 | ||
Non-GAAP Coal margin | $ 1,539,307 | $ 15,336 | $ 1,554,643 | ||
Tons sold | 11,726 | 771 | 12,497 | ||
Non-GAAP Coal margin per ton | $ 131.27 | $ 19.89 | $ 124.40 | ||
(1) | Depreciation, depletion and amortization - production excludes the depreciation, depletion and amortization related to selling, general and administrative functions. |
Nine Months Ended September 30, 2021 | |||||
(In thousands, except for per ton data) | Met | All Other | Consolidated | ||
Coal revenues | $ 1,362,119 | $ 63,920 | $ 1,426,039 | ||
Less: Freight and handling fulfillment revenues | (252,532) | (504) | (253,036) | ||
Non-GAAP Coal revenues | $ 1,109,587 | $ 63,416 | $ 1,173,003 | ||
Tons sold | 11,785 | 1,030 | 12,815 | ||
Non-GAAP Coal sales realization per ton | $ 94.15 | $ 61.57 | $ 91.53 | ||
Cost of coal sales (exclusive of items shown separately below) | $ 1,125,840 | $ 56,520 | $ 1,182,360 | ||
Depreciation, depletion and amortization - production (1) | 75,403 | 4,321 | 79,724 | ||
Accretion on asset retirement obligations | 10,170 | 9,800 | 19,970 | ||
Amortization of acquired intangibles, net | 9,749 | (347) | 9,402 | ||
Total Cost of coal sales | $ 1,221,162 | $ 70,294 | $ 1,291,456 | ||
Less: Freight and handling costs | (252,532) | (504) | (253,036) | ||
Less: Depreciation, depletion and amortization - production (1) | (75,403) | (4,321) | (79,724) | ||
Less: Accretion on asset retirement obligations | (10,170) | (9,800) | (19,970) | ||
Less: Amortization of acquired intangibles, net | (9,749) | 347 | (9,402) | ||
Less: Idled and closed mine costs | (13,325) | (10,215) | (23,540) | ||
Non-GAAP Cost of coal sales | $ 859,983 | $ 45,801 | $ 905,784 | ||
Tons sold | 11,785 | 1,030 | 12,815 | ||
Non-GAAP Cost of coal sales per ton | $ 72.97 | $ 44.47 | $ 70.68 | ||
(1) | Depreciation, depletion and amortization - production excludes the depreciation, depletion and amortization related to selling, general and administrative functions. |
Nine Months Ended September 30, 2021 | |||||
(In thousands, except for per ton data) | Met | All Other | Consolidated | ||
Coal revenues | $ 1,362,119 | $ 63,920 | $ 1,426,039 | ||
Less: Total Cost of coal sales (per table above) | (1,221,162) | (70,294) | (1,291,456) | ||
GAAP Coal margin | $ 140,957 | $ (6,374) | $ 134,583 | ||
Tons sold | 11,785 | 1,030 | 12,815 | ||
GAAP Coal margin per ton | $ 11.96 | $ (6.19) | $ 10.50 | ||
GAAP Coal margin | $ 140,957 | $ (6,374) | $ 134,583 | ||
Add: Depreciation, depletion and amortization - production (1) | 75,403 | 4,321 | 79,724 | ||
Add: Accretion on asset retirement obligations | 10,170 | 9,800 | 19,970 | ||
Add: Amortization of acquired intangibles, net | 9,749 | (347) | 9,402 | ||
Add: Idled and closed mine costs | 13,325 | 10,215 | 23,540 | ||
Non-GAAP Coal margin | $ 249,604 | $ 17,615 | $ 267,219 | ||
Tons sold | 11,785 | 1,030 | 12,815 | ||
Non-GAAP Coal margin per ton | $ 21.18 | $ 17.10 | $ 20.85 | ||
(1) | Depreciation, depletion and amortization - production excludes the depreciation, depletion and amortization related to selling, general and administrative functions. |
Three Months Ended June 30, 2022 | |||||
(In thousands, except for per ton data) | Met | All Other | Consolidated | ||
Non-GAAP Cost of coal sales | $ 450,994 | $ 12,675 | $ 463,669 | ||
Less: cost of purchased coal sold | (33,171) | — | (33,171) | ||
Adjusted cost of produced coal sold | $ 417,823 | $ 12,675 | $ 430,498 | ||
Produced tons sold | 3,929 | 254 | 4,183 | ||
Adjusted cost of produced coal sold per ton (1) | $ 106.34 | $ 49.90 | $ 102.92 | ||
(1) | Cost of produced coal sold per ton for our operations is calculated as non-GAAP cost of produced coal sold divided by produced tons sold. |
Three Months Ended September 30, 2022 | |||||
(In thousands, except for per ton data) | Met | All Other | Consolidated | ||
Non-GAAP Cost of coal sales | $ 408,553 | $ 16,803 | $ 425,356 | ||
Less: cost of purchased coal sold | (21,222) | — | (21,222) | ||
Adjusted cost of produced coal sold | $ 387,331 | $ 16,803 | $ 404,134 | ||
Produced tons sold | 3,795 | 249 | 4,044 | ||
Adjusted cost of produced coal sold per ton (1) | $ 102.06 | $ 67.48 | $ 99.93 | ||
(1) | Cost of produced coal sold per ton for our operations is calculated as non-GAAP cost of produced coal sold divided by produced tons sold. |
Three Months Ended September 30, 2021 | |||||
(In thousands, except for per ton data) | Met | All Other | Consolidated | ||
Non-GAAP Cost of coal sales | $ 335,582 | $ 16,518 | $ 352,100 | ||
Less: cost of purchased coal sold | (32,168) | — | (32,168) | ||
Adjusted cost of produced coal sold | $ 303,414 | $ 16,518 | $ 319,932 | ||
Produced tons sold | 4,107 | 348 | 4,455 | ||
Adjusted cost of produced coal sold per ton (1) | $ 73.88 | $ 47.47 | $ 71.81 | ||
(1) | Cost of produced coal sold per ton for our operations is calculated as non-GAAP cost of produced coal sold divided by produced tons sold. |
Nine Months Ended September 30, 2022 | |||||
(In thousands, except for per ton data) | Met | All Other | Consolidated | ||
Non-GAAP Cost of coal sales | $ 1,251,200 | $ 42,849 | $ 1,294,049 | ||
Less: cost of purchased coal sold | (82,235) | (37) | (82,272) | ||
Adjusted cost of produced coal sold | $ 1,168,965 | $ 42,812 | $ 1,211,777 | ||
Produced tons sold | 11,377 | 770 | 12,147 | ||
Adjusted cost of produced coal sold per ton (1) | $ 102.75 | $ 55.60 | $ 99.76 | ||
(1) | Cost of produced coal sold per ton for our operations is calculated as non-GAAP cost of produced coal sold divided by produced tons sold. |
Nine Months Ended September 30, 2021 | |||||
(In thousands, except for per ton data) | Met | All Other | Consolidated | ||
Non-GAAP Cost of coal sales | $ 859,983 | $ 45,801 | $ 905,784 | ||
Less: cost of purchased coal sold | (75,074) | — | (75,074) | ||
Adjusted cost of produced coal sold | $ 784,909 | $ 45,801 | $ 830,710 | ||
Produced tons sold | 11,028 | 1,030 | 12,058 | ||
Adjusted cost of produced coal sold per ton (1) | $ 71.17 | $ 44.47 | $ 68.89 | ||
(1) | Cost of produced coal sold per ton for our operations is calculated as non-GAAP cost of produced coal sold divided by produced tons sold. |
Three Months Ended September 30, 2022 | |||||||
(In thousands, except for per ton data) | Tons Sold | Coal Revenues | Non-GAAP | % of Met Tons | |||
Export - other pricing mechanisms | 1,433 | $ 299,218 | $ 208.81 | 41 % | |||
Domestic | 945 | 189,224 | $ 200.24 | 27 % | |||
Export - Australian indexed | 1,144 | 184,848 | $ 161.58 | 32 % | |||
Total Met segment - met coal | 3,522 | $ 673,290 | $ 191.17 | 100 % | |||
Met segment - thermal coal | 374 | 44,763 | $ 119.69 | ||||
Total Met segment Coal revenues | 3,896 | 718,053 | $ 184.31 | ||||
All Other Coal revenues | 249 | 27,208 | $ 109.27 | ||||
Non-GAAP Coal revenues | 4,145 | $ 745,261 | $ 179.80 | ||||
Add: Freight and handling fulfillment revenues | — | 122,588 | |||||
Coal revenues | 4,145 | $ 867,849 | |||||
SOURCE Alpha Metallurgical Resources, Inc.
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