Quarterly Financial Review - Report on Peabody Energy

Jul 29, 2015, 09:10 ET from www.aciassociation.com

NEW YORK, July 29, 2015 /PRNewswire/ --

ACI Association has initiated research coverage on Peabody Energy Corporation (NYSE: BTU). Select highlights from the internally released reports are being made available to the general public (included below), with access to the entirety of the research available to new members.

Today, membership is open to readers on a complementary basis at the following URL: http://www.aciassociation.com/?c=BTU

Highlights from our BTU Report include:

  • Top-Line View -- On July 28, 2015, Peabody Energy Corporation reported the results for second quarter of 2015. Revenues for the period totaled $1.34 billion compared with $1.76 billion in the prior year quarter as a result of 16% volume decline and lower realized pricing. Sales volume was recorded at 51.9 million tons in the quarter as compared to 61.7 million tons in Q2 2014. U.S. Mining Operations contributed $822.3 million to the total revenue, while the share of Australian Mining Operations in total revenue totaled $505.9 million during the quarter.
  • Operational Performance -- Adjusted EBITDA for the quarter declined $126.1 million from the prior period to $87.0 million, reflecting approximately $115 million in lower pricing, a $113.1 million negative hedging impact, nearly $40 million in PRB weather impacts and a $21.2 million restructuring charge. U.S. Mining adjusted EBITDA declined $80.1 million to $211.5 million due to a 6.4 million ton volume decline and an 8% decrease in average price per ton, while Australian Mining adjusted EBITDA increased $50.5 million to $55.8 million in the second quarter, as approximately $160 million in cost improvements offset $90 million in lower pricing.
  • A Quick Look at the Bottom-line -- Loss from continuing operations came in at $1.01 billion or $3.71 per diluted share as compared to loss of $72.0 million or $0.28 per diluted share in the prior year quarter. The Company informed that diluted loss per share from continuing operations includes a $3.06 per share impact related to asset impairments. Further, adjusted diluted loss per share for the period was $0.65 versus a loss of $0.28 per diluted share in Q2 2014.
  • Full-Year Outlook -- The Company updated its guidance for full-year 2015. As per the new guidance, total sales volume for 2015 is expected to be in the range of 225 - 245 million tons. U.S. costs per ton are targeted to improve 3% to 5% in 2015 as a result of a higher percentage of PRB shipments, lower fuel costs and ongoing cost containment. In contrast, U.S. revenues per ton are targeted to decline 3% to 5% in 2015 as a result of change in mix and roll off of higher sales contracts compared to 2014. Further, Australian costs per ton are targeted to be nearly 20% below 2014 levels due to cost reduction initiatives, sales mix, and lower currency and fuel expenses.

To find out how this influences our rating on Peabody Energy Corporation read the full report in its entirety here: http://www.aciassociation.com/?c=BTU

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