Attached files
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| 8-K - 8-K - Alpha Metallurgical Resources, Inc. | amr-20210510.htm |
| FOR IMMEDIATE RELEASE |  | ||||
Alpha Announces First Quarter 2021 Results
•Reports net loss from continuing operations of $32.7 million for the first quarter 2021
•Posts Adjusted EBITDA of $28.9 million for the first quarter 2021
•Continues strong cost management across all operating segments
•Expects significant reduction in minimum required pension contributions through 2025
•Reiterates 2021 operating guidance
BRISTOL, Tenn., May 10, 2021 - Alpha Metallurgical Resources, Inc. (NYSE: AMR), a leading U.S. supplier of metallurgical products for the steel industry, today reported results for the first quarter ending March 31, 2021.
| (millions, except per share) | |||||||||||
| Three months ended | |||||||||||
Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | |||||||||
Net loss(2) | $(32.7) | $(55.1) | $(36.2) | ||||||||
Net loss(2) per diluted share | $(1.78) | $(3.00) | $(1.98) | ||||||||
Adjusted EBITDA(1) | $28.9 | $7.4 | $56.5 | ||||||||
Operating cash flow(3) | $(19.1) | $56.2 | $(0.1) | ||||||||
Capital expenditures(3) | $(20.4) | $(35.1) | $(49.6) | ||||||||
Tons of coal sold(2) | 4.1 | 3.7 | 3.9 | ||||||||
__________________________________
1. These are non-GAAP financial measures. A reconciliation of Net Income to Adjusted EBITDA is included in tables accompanying the financial schedules.
2. From continuing operations.
3. Includes discontinued operations.
"Our first quarter results demonstrate our continued commitment to cost management and focus on fundamental operations performance," said David Stetson, Alpha's chair and chief executive officer. "Despite pricing headwinds from the Australian indices that limited our total realizations for the quarter, Alpha's volumes were very strong and we remain cautiously optimistic about improved market conditions going into the second half of 2021."
Financial Performance
Alpha reported a net loss from continuing operations of $32.7 million, or $1.78 per diluted share, for the first quarter 2021. In the fourth quarter 2020, the company had a net loss from continuing operations of $55.1 million or $3.00 per diluted share.
Total Adjusted EBITDA was $28.9 million for the first quarter, compared with $7.4 million in the fourth quarter 2020, primarily due to higher volumes and improved coal revenues per ton.
Coal Revenues
| (millions) | ||||||||
| Three months ended | ||||||||
| Mar. 31, 2021 | Dec. 31, 2020 | |||||||
| Met | $359.9 | $289.8 | ||||||
| All Other | $25.6 | $33.6 | ||||||
Met (excl. freight & handling)(1) | $299.9 | $241.5 | ||||||
All Other (excl. freight & handling)(1) | $25.2 | $32.1 | ||||||
| Tons Sold | (millions) | |||||||
| Three months ended | ||||||||
| Mar. 31, 2021 | Dec. 31, 2020 | |||||||
| Met | 3.7 | 3.2 | ||||||
| All Other | 0.4 | 0.5 | ||||||
__________________________________
1. Represents Non-GAAP coal revenues which is defined and reconciled under "Non-GAAP Financial Measures" and "Results of Operations."
The Met revenue increase in the first quarter compared to the fourth quarter was due to increased shipment volume and higher price realization. The All Other segment revenues decreased due to lower volumes.
Coal Sales Realization(1)
| (per ton) | ||||||||
| Three months ended | ||||||||
| Mar. 31, 2021 | Dec. 31, 2020 | |||||||
| Met | $82.00 | $75.24 | ||||||
| All Other | $61.59 | $59.81 | ||||||
__________________________________
1. Represents Non-GAAP coal sales realization which is defined and reconciled under "Non-GAAP Financial Measures" and "Results of Operations."
As a result of the improved pricing environment in the Atlantic basin, our average Met segment coal sales realization increased by 9% against the prior quarter to $82.00 per ton from $75.24. Australian hard coking coal indices remained weak throughout the first quarter, negatively
impacting our Met segment export realization on contracts tied to Australian indices, while Atlantic indices continued to trade significantly above those in the Pacific.
The All Other segment realization improved 3% in the first quarter over the prior period.
Cost of Coal Sales
| (in millions, except per ton data) | ||||||||
| Three months ended | ||||||||
| Mar. 31, 2021 | Dec. 31, 2020 | |||||||
| Cost of Coal Sales | $347.4 | $301.8 | ||||||
Cost of Coal Sales (excl. freight & handling/idle)(1) | $279.9 | $245.9 | ||||||
| (per ton) | ||||||||
Met(1) | $71.72 | $69.25 | ||||||
All Other(1) | $43.05 | $44.03 | ||||||
__________________________________
1. Represents Non-GAAP cost of coal sales per ton which is defined and reconciled under "Non-GAAP Financial Measures" and "Results of Operations."
In the first quarter, the company's Met cost of coal sales averaged $71.72 per ton, up from $69.25 in the prior quarter and approximately in line with our guidance. The main drivers of the cost performance versus the fourth quarter were supplies, primarily related to diesel fuel and roof support, and sales-related expenses due to higher metallurgical coal realizations.
The All Other segment posted another solid cost of coal sales performance, with first quarter cost of $43.05 as compared to $44.03 per ton for the prior quarter.
Selling, general and administrative (SG&A) and depreciation, depletion and amortization (DD&A) expenses
| (millions) | ||||||||
| Three months ended | ||||||||
| Mar. 31, 2021 | Dec. 31, 2020 | |||||||
| SG&A | $15.0 | $15.3 | ||||||
| Less: non-cash stock compensation and non-recurring expenses | $(2.3) | $(0.8) | ||||||
Non-GAAP SG&A(1) | $12.7 | $14.5 | ||||||
| DD&A | $28.4 | $(4.0) | ||||||
__________________________________
1. Represents Non-GAAP SG&A which is defined under "Non-GAAP Financial Measures."
Alpha's first quarter 2021 SG&A expenses were $12.7 million, excluding non-cash stock compensation expense and non-recurring expenses of $2.3 million, compared with $14.5 million in the prior quarter.
Liquidity and Capital Resources
"Based on provisions in the recent American Rescue Plan Act, we have updated our estimates for minimum required pension contributions through 2025," said Andy Eidson, Alpha's president and chief financial officer. "This should result in an estimated reduction of $84.4 million in pension contributions over the full period, which includes a reduction of $14.1 million in 2021 to a minimum contribution of $11.4 million. In terms of our first quarter performance, our accounts receivable increased by $62.0 million as a result of strong sales, partially offset by a $36.8 million increase in accounts payable, resulting in a use of cash for the quarter. We have seen our working capital begin to normalize over the past couple of months and expect that to yield higher cash collections in upcoming quarters."
Cash used for operating activities for the first quarter 2021 was $19.1 million and capital expenditures for the first quarter were $20.4 million. In the prior period, the cash provided by operating activities was $56.2 million, which included the receipt of $66.1 million in accelerated alternative minimum tax (AMT) credit monetization refund. Cash used for and provided by operating activities includes discontinued operations. Capital expenditures for the prior period were $35.1 million.
As of March 31, 2021, Alpha had $92.2 million in unrestricted cash and $148.2 million in restricted cash, deposits and investments. Total long-term debt, including the current portion of long-term debt as of March 31, 2021, was $579.8 million. At the end of the first quarter, the company had total liquidity of $108.5 million, including cash and cash equivalents of $92.2 million and $16.3 million in unused availability under the Asset-Based Revolving Credit Facility (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 March 31, 2021, the company had no borrowings and $130.9 million in letters of credit outstanding under the ABL.
2021 Full-Year Guidance
The company reiterates its previously issued 2021 operating guidance with coal shipments guidance range of 14.8 million tons to 16.2 million tons, with Met segment volume expected to be between 13.5 million to 14.5 million tons with pure metallurgical coal shipments of 12.5 million to 13.0 million tons and incidental thermal shipments in this segment of 1.0 million to 1.5 million tons. Our All Other segment volume is anticipated to be between 1.3 million tons to 1.7 million tons.
For 2021, Alpha has committed and priced approximately 64% of its metallurgical coal within the Met segment at an average price of $85.65 per ton and 93% of thermal coal in the Met segment at an average expected price of $51.16 per ton. In the All Other segment the company is 100% committed and priced at an average price of $57.67 per ton.
The company's 2021 Met segment cost of coal sales per ton is expected to be between $68.00 and $74.00 and our All Other segment is expected to be in the range of $45.00 to $49.00 per ton.
For 2021, the company expects its SG&A to be in the range of $44 million to $49 million, excluding non-recurring expenses and non-cash stock compensation. Our overall 2021 capital expenditures guidance is in a range of $75 million to $95 million, near the maintenance capital level. Depreciation, depletion and amortization is expected to be between $125 million and $145 million with cash interest expense in the range of $51 million and $55 million.
| 2021 Guidance | ||||||||
| in millions of tons | Low | High | ||||||
| Metallurgical | 12.5 | 13.0 | ||||||
| Thermal | 1.0 | 1.5 | ||||||
| Met Segment | 13.5 | 14.5 | ||||||
| All Other | 1.3 | 1.7 | ||||||
| Total Shipments | 14.8 | 16.2 | ||||||
Committed/Priced1,2,3 | Committed | Average Price | ||||||
| Metallurgical | 64 | % | $85.65 | |||||
| Thermal | 93 | % | $51.16 | |||||
Met Segment | 67 | % | $81.35 | |||||
| All Other | 100 | % | $57.67 | |||||
Committed/Unpriced1,3 | Committed | |||||||
| Metallurgical | 28 | % | ||||||
| Thermal | 7 | % | ||||||
Met Segment | 27 | % | ||||||
| All Other | — | % | ||||||
Costs per ton4 | Low | High | ||||||
| Met Segment | $68.00 | $74.00 | ||||||
| All Other | $45.00 | $49.00 | ||||||
| In millions (except taxes) | Low | High | ||||||
SG&A5 | $44 | $49 | ||||||
| Idle Operations Expense | $24 | $30 | ||||||
| Cash Interest Expense | $51 | $55 | ||||||
| DD&A | $125 | $145 | ||||||
| Capital Expenditures | $75 | $95 | ||||||
| Tax Rate | — | % | 5 | % | ||||
Notes:
1.Based on committed and priced coal shipments as of April 23, 2021. 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.
Conference Call
The company plans to hold a conference call regarding its first quarter 2021 results on May 10, 2021, 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 866-235-9918 (domestic toll-free) or 412-542-4110 (international) approximately 15 minutes prior to the start of the call.
About Alpha Metallurgical Resources
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.
Forward-Looking Statements
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 Contact
InvestorRelations@AlphaMetResources.com
Alex Rotonen, CFA
423.956.6882
Media Contact
CorporateCommunications@AlphaMetResources.com
Emily O’Quinn
423.573.0369
FINANCIAL TABLES FOLLOW
Non-GAAP Financial Measures
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,” 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 March 31, | |||||||||||
| 2021 | 2020 | ||||||||||
| Revenues: | |||||||||||
| Coal revenues | $ | 385,452 | $ | 401,460 | |||||||
| Other revenues | 801 | 1,344 | |||||||||
| Total revenues | 386,253 | 402,804 | |||||||||
| Costs and expenses: | |||||||||||
| Cost of coal sales (exclusive of items shown separately below) | 347,428 | 334,220 | |||||||||
| Depreciation, depletion and amortization | 28,438 | 47,616 | |||||||||
| Accretion on asset retirement obligations | 6,648 | 6,639 | |||||||||
| Amortization of acquired intangibles, net | 3,869 | 511 | |||||||||
| Asset impairment and restructuring | (561) | 33,709 | |||||||||
| Selling, general and administrative expenses (exclusive of depreciation, depletion and amortization shown separately above) | 14,982 | 15,481 | |||||||||
| Total other operating (income) loss: | |||||||||||
| Mark-to-market adjustment for acquisition-related obligations | 3,176 | (14,997) | |||||||||
| Other income | (1,225) | (668) | |||||||||
| Total costs and expenses | 402,755 | 422,511 | |||||||||
| Loss from operations | (16,502) | (19,707) | |||||||||
| Other (expense) income: | |||||||||||
| Interest expense | (17,990) | (18,176) | |||||||||
| Interest income | 164 | 968 | |||||||||
| Equity loss in affiliates | (134) | (743) | |||||||||
| Miscellaneous income (loss), net | 1,766 | (716) | |||||||||
| Total other expense, net | (16,194) | (18,667) | |||||||||
| Loss from continuing operations before income taxes | (32,696) | (38,374) | |||||||||
| Income tax benefit | 5 | 2,188 | |||||||||
| Net loss from continuing operations | (32,691) | (36,186) | |||||||||
| Discontinued operations: | |||||||||||
| Loss from discontinued operations before income taxes | (237) | (3,622) | |||||||||
| Loss from discontinued operations | (237) | (3,622) | |||||||||
| Net loss | $ | (32,928) | $ | (39,808) | |||||||
| Basic and diluted loss per common share: | |||||||||||
| Loss from continuing operations | $ | (1.78) | $ | (1.98) | |||||||
| Loss from discontinued operations | (0.01) | (0.20) | |||||||||
| Net loss | $ | (1.79) | $ | (2.18) | |||||||
Weighted average shares – basic and diluted | 18,361,444 | 18,245,911 | |||||||||
ALPHA METALLURGICAL RESOURCES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(Amounts in thousands, except share and per share data)
| March 31, 2021 | December 31, 2020 | ||||||||||
| Assets | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 92,236 | $ | 139,227 | |||||||
| Trade accounts receivable, net of allowance for doubtful accounts of $470 and $293 as of March 31, 2021 and December 31, 2020 | 214,342 | 145,670 | |||||||||
| Inventories, net | 108,871 | 108,051 | |||||||||
| Prepaid expenses and other current assets | 106,909 | 106,252 | |||||||||
| Current assets - discontinued operations | 3,216 | 10,935 | |||||||||
| Total current assets | 525,574 | 510,135 | |||||||||
| Property, plant, and equipment, net of accumulated depreciation and amortization of $400,505 and $382,423 as of March 31, 2021 and December 31, 2020 | 361,120 | 363,620 | |||||||||
| Owned and leased mineral rights, net of accumulated depletion and amortization of $40,976 and $35,143 as of March 31, 2021 and December 31, 2020 | 457,416 | 463,250 | |||||||||
| Other acquired intangibles, net of accumulated amortization of $29,651 and $25,700 as of March 31, 2021 and December 31, 2020 | 84,245 | 88,196 | |||||||||
| Long-term restricted cash | 85,640 | 96,033 | |||||||||
| Other non-current assets | 148,170 | 149,382 | |||||||||
| Non-current assets - discontinued operations | 9,476 | 9,473 | |||||||||
| Total assets | $ | 1,671,641 | $ | 1,680,089 | |||||||
| Liabilities and Stockholders’ Equity | |||||||||||
| Current liabilities: | |||||||||||
| Current portion of long-term debt | $ | 29,447 | $ | 28,830 | |||||||
| Trade accounts payable | 97,902 | 58,413 | |||||||||
Acquisition-related obligations – current | 19,879 | 19,099 | |||||||||
| Accrued expenses and other current liabilities | 134,873 | 140,406 | |||||||||
| Current liabilities - discontinued operations | 7,502 | 12,306 | |||||||||
| Total current liabilities | 289,603 | 259,054 | |||||||||
| Long-term debt | 550,314 | 553,697 | |||||||||
| Acquisition-related obligations - long-term | 23,123 | 20,768 | |||||||||
| Workers’ compensation and black lung obligations | 229,691 | 230,081 | |||||||||
| Pension obligations | 211,722 | 218,671 | |||||||||
| Asset retirement obligations | 140,675 | 140,074 | |||||||||
| Deferred income taxes | 474 | 480 | |||||||||
| Other non-current liabilities | 27,850 | 28,072 | |||||||||
| Non-current liabilities - discontinued operations | 28,028 | 29,090 | |||||||||
| Total liabilities | 1,501,480 | 1,479,987 | |||||||||
| 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, 20.7 million issued and 18.4 million outstanding at March 31, 2021 and 20.6 million issued and 18.3 million outstanding at December 31, 2020 | 207 | 206 | |||||||||
| Additional paid-in capital | 781,606 | 779,424 | |||||||||
| Accumulated other comprehensive loss | (110,501) | (111,985) | |||||||||
| Treasury stock, at cost: 2.3 million shares at March 31, 2021 and December 31, 2020 | (107,694) | (107,014) | |||||||||
| Accumulated deficit | (393,457) | (360,529) | |||||||||
| Total stockholders’ equity | 170,161 | 200,102 | |||||||||
| Total liabilities and stockholders’ equity | $ | 1,671,641 | $ | 1,680,089 | |||||||
ALPHA METALLURGICAL RESOURCES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(Amounts in thousands)
| Three Months Ended March 31, | |||||||||||
| 2021 | 2020 | ||||||||||
| Operating activities: | |||||||||||
| Net loss | $ | (32,928) | $ | (39,808) | |||||||
| Adjustments to reconcile net loss to net cash used in operating activities: | |||||||||||
| Depreciation, depletion and amortization | 28,438 | 54,465 | |||||||||
| Amortization of acquired intangibles, net | 3,869 | 865 | |||||||||
| Accretion of acquisition-related obligations discount | 371 | 1,092 | |||||||||
| Amortization of debt issuance costs and accretion of debt discount | 3,316 | 3,659 | |||||||||
| Mark-to-market adjustment for acquisition-related obligations | 3,176 | (14,997) | |||||||||
| Gain on disposal of assets | (1,258) | (745) | |||||||||
| Asset impairment and restructuring | (561) | 33,709 | |||||||||
| Accretion on asset retirement obligations | 6,648 | 7,375 | |||||||||
| Employee benefit plans, net | 2,147 | 5,346 | |||||||||
| Deferred income taxes | (6) | 32,960 | |||||||||
| Stock-based compensation | 2,183 | 2,078 | |||||||||
| Equity loss in affiliates | 134 | 743 | |||||||||
| Other, net | 826 | 808 | |||||||||
| Changes in operating assets and liabilities | (35,470) | (87,610) | |||||||||
| Net cash used in operating activities | (19,115) | (60) | |||||||||
| Investing activities: | |||||||||||
| Capital expenditures | (20,395) | (49,559) | |||||||||
| Proceeds on disposal of assets | 2,652 | 208 | |||||||||
| Purchases of investment securities | (12,959) | (12,435) | |||||||||
| Maturity of investment securities | 1,376 | 3,918 | |||||||||
| Capital contributions to equity affiliates | (441) | (915) | |||||||||
| Other, net | 18 | 12 | |||||||||
| Net cash used in investing activities | (29,749) | (58,771) | |||||||||
| Financing activities: | |||||||||||
| Proceeds from borrowings on debt | — | 57,500 | |||||||||
| Principal repayments of debt | (4,755) | (1,404) | |||||||||
| Principal repayments of notes payable | (468) | (49) | |||||||||
| Principal repayments of financing lease obligations | (501) | (803) | |||||||||
| Common stock repurchases and related expenses | (680) | (108) | |||||||||
| Net cash (used in) provided by financing activities | (6,404) | 55,136 | |||||||||
| Net decrease in cash and cash equivalents and restricted cash | (55,268) | (3,695) | |||||||||
| Cash and cash equivalents and restricted cash at beginning of period | 244,571 | 347,680 | |||||||||
| Cash and cash equivalents and restricted cash at end of period | $ | 189,303 | $ | 343,985 | |||||||
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 March 31, | |||||||||||
| 2021 | 2020 | ||||||||||
| Cash and cash equivalents | $ | 92,236 | $ | 227,056 | |||||||
| Short-term restricted cash (included in prepaid expenses and other current assets) | 11,427 | 15,114 | |||||||||
| Long-term restricted cash | 85,640 | 101,815 | |||||||||
| Total cash and cash equivalents and restricted cash shown in the Condensed Consolidated Statements of Cash Flows | $ | 189,303 | $ | 343,985 | |||||||
ALPHA METALLURGICAL RESOURCES, INC. AND SUBSIDIARIES
ADJUSTED EBITDA RECONCILIATION
(Amounts in thousands)
| Three Months Ended | |||||||||||||||||
| March 31, 2021 | March 31, 2020 | December 31, 2020 | |||||||||||||||
| Net loss from continuing operations | $ | (32,691) | $ | (36,186) | $ | (55,050) | |||||||||||
| Interest expense | 17,990 | 18,176 | 18,290 | ||||||||||||||
| Interest income | (164) | (968) | (153) | ||||||||||||||
| Income tax (benefit) expense | (5) | (2,188) | 36 | ||||||||||||||
| Depreciation, depletion and amortization | 28,438 | 47,616 | (4,036) | ||||||||||||||
| Non-cash stock compensation expense | 2,184 | 2,078 | 696 | ||||||||||||||
| Mark-to-market adjustment - acquisition-related obligations | 3,176 | (14,997) | 4,676 | ||||||||||||||
| Accretion on asset retirement obligations | 6,648 | 6,639 | 6,559 | ||||||||||||||
Asset impairment and restructuring (1) | (561) | 33,709 | 29,897 | ||||||||||||||
Management restructuring costs (2) | — | 940 | — | ||||||||||||||
| Loss on partial settlement of benefit obligations | — | 1,167 | 1,735 | ||||||||||||||
| Amortization of acquired intangibles, net | 3,869 | 511 | 4,748 | ||||||||||||||
| Adjusted EBITDA | $ | 28,884 | $ | 56,497 | $ | 7,398 | |||||||||||
(1) Asset impairment and restructuring for the three months ended March 31, 2021 includes long-lived asset impairment of $60 as a result of capital spending during the quarter at previously impaired locations requiring the impairment of certain additional assets not considered recoverable and restructuring expense of ($621) as a result of the strategic actions announced during the second quarter of 2020 and subsequent changes to severance and employee-related benefits. Asset impairment for the three months ended March 31, 2020 includes a long-lived asset impairment related to asset groups recorded within the Met and All Other segments due to declines in metallurgical and thermal coal pricing. Asset impairment and restructuring for the three months ended December 31, 2020 includes long-lived asset impairment of $29,636 related to asset groups recorded within the Met and All Other segments and restructuring expense of $261 recorded in the All Other segment.
(2) Management restructuring costs are related to severance expense associated with senior management changes during the three months ended March 31, 2020.
ALPHA METALLURGICAL RESOURCES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS
| Three Months Ended March 31, 2021 | |||||||||||||||||
| (In thousands, except for per ton data) | Met | All Other | Consolidated | ||||||||||||||
| Coal revenues | $ | 359,893 | $ | 25,559 | $ | 385,452 | |||||||||||
| Less: Freight and handling fulfillment revenues | (60,011) | (369) | (60,380) | ||||||||||||||
| Non-GAAP Coal revenues | $ | 299,882 | $ | 25,190 | $ | 325,072 | |||||||||||
| Tons sold | 3,657 | 409 | 4,066 | ||||||||||||||
| Non-GAAP Coal sales realization per ton | $ | 82.00 | $ | 61.59 | $ | 79.95 | |||||||||||
| Cost of coal sales (exclusive of items shown separately below) | $ | 325,895 | $ | 21,533 | $ | 347,428 | |||||||||||
Depreciation, depletion and amortization - production (1) | 26,536 | 1,723 | 28,259 | ||||||||||||||
| Accretion on asset retirement obligations | 3,385 | 3,263 | 6,648 | ||||||||||||||
| Amortization of acquired intangibles, net | 4,051 | (182) | 3,869 | ||||||||||||||
| Total Cost of coal sales | $ | 359,867 | $ | 26,337 | $ | 386,204 | |||||||||||
| Less: Freight and handling costs | (60,011) | (369) | (60,380) | ||||||||||||||
Less: Depreciation, depletion and amortization - production (1) | (26,536) | (1,723) | (28,259) | ||||||||||||||
| Less: Accretion on asset retirement obligations | (3,385) | (3,263) | (6,648) | ||||||||||||||
| Less: Amortization of acquired intangibles, net | (4,051) | 182 | (3,869) | ||||||||||||||
| Less: Idled and closed mine costs | (3,603) | (3,556) | (7,159) | ||||||||||||||
| Non-GAAP Cost of coal sales | $ | 262,281 | $ | 17,608 | $ | 279,889 | |||||||||||
| Tons sold | 3,657 | 409 | 4,066 | ||||||||||||||
| Non-GAAP Cost of coal sales per ton | $ | 71.72 | $ | 43.05 | $ | 68.84 | |||||||||||
(1) Depreciation, depletion and amortization - production excludes the depreciation, depletion and amortization related to selling, general and administrative functions.
| Three Months Ended March 31, 2021 | |||||||||||||||||
| (In thousands, except for per ton data) | Met | All Other | Consolidated | ||||||||||||||
| Coal revenues | $ | 359,893 | $ | 25,559 | $ | 385,452 | |||||||||||
| Less: Total Cost of coal sales (per table above) | (359,867) | (26,337) | (386,204) | ||||||||||||||
| GAAP Coal margin | $ | 26 | $ | (778) | $ | (752) | |||||||||||
| Tons sold | 3,657 | 409 | 4,066 | ||||||||||||||
| GAAP Coal margin per ton | $ | 0.01 | $ | (1.90) | $ | (0.18) | |||||||||||
| GAAP Coal margin | $ | 26 | $ | (778) | $ | (752) | |||||||||||
Add: Depreciation, depletion and amortization - production (1) | 26,536 | 1,723 | 28,259 | ||||||||||||||
| Add: Accretion on asset retirement obligations | 3,385 | 3,263 | 6,648 | ||||||||||||||
| Add: Amortization of acquired intangibles, net | 4,051 | (182) | 3,869 | ||||||||||||||
| Add: Idled and closed mine costs | 3,603 | 3,556 | 7,159 | ||||||||||||||
| Non-GAAP Coal margin | $ | 37,601 | $ | 7,582 | $ | 45,183 | |||||||||||
| Tons sold | 3,657 | 409 | 4,066 | ||||||||||||||
| Non-GAAP Coal margin per ton | $ | 10.28 | $ | 18.54 | $ | 11.11 | |||||||||||
(1) Depreciation, depletion and amortization - production excludes the depreciation, depletion and amortization related to selling, general and administrative functions.
| Three Months Ended March 31, 2020 | |||||||||||||||||
| (In thousands, except for per ton data) | Met | All Other | Consolidated | ||||||||||||||
| Coal revenues | $ | 362,403 | $ | 39,057 | $ | 401,460 | |||||||||||
| Less: Freight and handling fulfillment revenues | (53,664) | (3,743) | (57,407) | ||||||||||||||
| Non-GAAP Coal revenues | $ | 308,739 | $ | 35,314 | $ | 344,053 | |||||||||||
| Tons sold | 3,327 | 622 | 3,949 | ||||||||||||||
| Non-GAAP Coal sales realization per ton | $ | 92.80 | $ | 56.77 | $ | 87.12 | |||||||||||
| Cost of coal sales (exclusive of items shown separately below) | $ | 293,058 | $ | 41,162 | $ | 334,220 | |||||||||||
Depreciation, depletion and amortization - production (1) | 41,722 | 5,540 | 47,262 | ||||||||||||||
| Accretion on asset retirement obligations | 3,536 | 3,103 | 6,639 | ||||||||||||||
| Amortization of acquired intangibles, net | 2,581 | (2,070) | 511 | ||||||||||||||
| Total Cost of coal sales | $ | 340,897 | $ | 47,735 | $ | 388,632 | |||||||||||
| Less: Freight and handling costs | (53,664) | (3,743) | (57,407) | ||||||||||||||
Less: Depreciation, depletion and amortization - production (1) | (41,722) | (5,540) | (47,262) | ||||||||||||||
| Less: Accretion on asset retirement obligations | (3,536) | (3,103) | (6,639) | ||||||||||||||
| Less: Amortization of acquired intangibles, net | (2,581) | 2,070 | (511) | ||||||||||||||
| Less: Idled and closed mine costs | (4,157) | (4,362) | (8,519) | ||||||||||||||
| Non-GAAP Cost of coal sales | $ | 235,237 | $ | 33,057 | $ | 268,294 | |||||||||||
| Tons sold | 3,327 | 622 | 3,949 | ||||||||||||||
| Non-GAAP Cost of coal sales per ton | $ | 70.71 | $ | 53.15 | $ | 67.94 | |||||||||||
(1) Depreciation, depletion and amortization - production excludes the depreciation, depletion and amortization related to selling, general and administrative functions.
| Three Months Ended March 31, 2020 | |||||||||||||||||
| (In thousands, except for per ton data) | Met | All Other | Consolidated | ||||||||||||||
| Coal revenues | $ | 362,403 | $ | 39,057 | $ | 401,460 | |||||||||||
| Less: Total Cost of coal sales (per table above) | (340,897) | (47,735) | (388,632) | ||||||||||||||
| GAAP Coal margin | $ | 21,506 | $ | (8,678) | $ | 12,828 | |||||||||||
| Tons sold | 3,327 | 622 | 3,949 | ||||||||||||||
| GAAP Coal margin per ton | $ | 6.46 | $ | (13.95) | $ | 3.25 | |||||||||||
| GAAP Coal margin | $ | 21,506 | $ | (8,678) | $ | 12,828 | |||||||||||
Add: Depreciation, depletion and amortization - production (1) | 41,722 | 5,540 | 47,262 | ||||||||||||||
| Add: Accretion on asset retirement obligations | 3,536 | 3,103 | 6,639 | ||||||||||||||
| Add: Amortization of acquired intangibles, net | 2,581 | (2,070) | 511 | ||||||||||||||
| Add: Idled and closed mine costs | 4,157 | 4,362 | 8,519 | ||||||||||||||
| Non-GAAP Coal margin | $ | 73,502 | $ | 2,257 | $ | 75,759 | |||||||||||
| Tons sold | 3,327 | 622 | 3,949 | ||||||||||||||
| Non-GAAP Coal margin per ton | $ | 22.09 | $ | 3.63 | $ | 19.18 | |||||||||||
(1) Depreciation, depletion and amortization - production excludes the depreciation, depletion and amortization related to selling, general and administrative functions.
| Three Months Ended December 31, 2020 | |||||||||||||||||
| (In thousands, except for per ton data) | Met | All Other | Consolidated | ||||||||||||||
| Coal revenues | $ | 289,756 | $ | 33,604 | $ | 323,360 | |||||||||||
| Less: Freight and handling fulfillment revenues | (48,251) | (1,548) | (49,799) | ||||||||||||||
| Non-GAAP Coal revenues | $ | 241,505 | $ | 32,056 | $ | 273,561 | |||||||||||
| Tons sold | 3,210 | 536 | 3,746 | ||||||||||||||
| Non-GAAP Coal sales realization per ton | $ | 75.24 | $ | 59.81 | $ | 73.03 | |||||||||||
| Cost of coal sales (exclusive of items shown separately below) | $ | 273,984 | $ | 27,847 | $ | 301,831 | |||||||||||
Depreciation, depletion and amortization - production (1) | 2,381 | (6,649) | (4,268) | ||||||||||||||
| Accretion on asset retirement obligations | 3,328 | 3,231 | 6,559 | ||||||||||||||
| Amortization of acquired intangibles, net | 5,014 | (266) | 4,748 | ||||||||||||||
| Total Cost of coal sales | $ | 284,707 | $ | 24,163 | $ | 308,870 | |||||||||||
| Less: Freight and handling costs | (48,251) | (1,548) | (49,799) | ||||||||||||||
Less: Depreciation, depletion and amortization - production (1) | (2,381) | 6,649 | 4,268 | ||||||||||||||
| Less: Accretion on asset retirement obligations | (3,328) | (3,231) | (6,559) | ||||||||||||||
| Less: Amortization of acquired intangibles, net | (5,014) | 266 | (4,748) | ||||||||||||||
| Less: Idled and closed mine costs | (3,445) | (2,698) | (6,143) | ||||||||||||||
| Non-GAAP Cost of coal sales | $ | 222,288 | $ | 23,601 | $ | 245,889 | |||||||||||
| Tons sold | 3,210 | 536 | 3,746 | ||||||||||||||
| Non-GAAP Cost of coal sales per ton | $ | 69.25 | $ | 44.03 | $ | 65.64 | |||||||||||
(1) Depreciation, depletion and amortization - production excludes the depreciation, depletion and amortization related to selling, general and administrative functions.
| Three Months Ended December 31, 2020 | |||||||||||||||||
| (In thousands, except for per ton data) | Met | All Other | Consolidated | ||||||||||||||
| Coal revenues | $ | 289,756 | $ | 33,604 | $ | 323,360 | |||||||||||
| Less: Total Cost of coal sales (per table above) | (284,707) | (24,163) | (308,870) | ||||||||||||||
| GAAP Coal margin | $ | 5,049 | $ | 9,441 | $ | 14,490 | |||||||||||
| Tons sold | 3,210 | 536 | 3,746 | ||||||||||||||
| GAAP Coal margin per ton | $ | 1.57 | $ | 17.61 | $ | 3.87 | |||||||||||
| GAAP Coal margin | $ | 5,049 | $ | 9,441 | $ | 14,490 | |||||||||||
Add: Depreciation, depletion and amortization - production (1) | 2,381 | (6,649) | (4,268) | ||||||||||||||
| Add: Accretion on asset retirement obligations | 3,328 | 3,231 | 6,559 | ||||||||||||||
| Add: Amortization of acquired intangibles, net | 5,014 | (266) | 4,748 | ||||||||||||||
| Add: Idled and closed mine costs | 3,445 | 2,698 | 6,143 | ||||||||||||||
| Non-GAAP Coal margin | $ | 19,217 | $ | 8,455 | $ | 27,672 | |||||||||||
| Tons sold | 3,210 | 536 | 3,746 | ||||||||||||||
| Non-GAAP Coal margin per ton | $ | 5.99 | $ | 15.77 | $ | 7.39 | |||||||||||
(1) Depreciation, depletion and amortization - production excludes the depreciation, depletion and amortization related to selling, general and administrative functions.
| Three Months Ended March 31, 2021 | |||||||||||||||||
| (In thousands, except for per ton data) | Met | All Other | Consolidated | ||||||||||||||
| Non-GAAP Cost of coal sales | $ | 262,281 | $ | 17,608 | $ | 279,889 | |||||||||||
| Less: cost of purchased coal sold | (18,264) | — | (18,264) | ||||||||||||||
| Adjusted cost of produced coal sold | $ | 244,017 | $ | 17,608 | $ | 261,625 | |||||||||||
| Produced tons sold | 3,424 | 409 | 3,833 | ||||||||||||||
Adjusted cost of produced coal sold per ton (1) | $ | 71.27 | $ | 43.05 | $ | 68.26 | |||||||||||
(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 March 31, 2020 | |||||||||||||||||
| (In thousands, except for per ton data) | Met | All Other | Consolidated | ||||||||||||||
| Non-GAAP Cost of coal sales | $ | 235,237 | $ | 33,057 | $ | 268,294 | |||||||||||
| Less: cost of purchased coal sold | (30,334) | (893) | (31,227) | ||||||||||||||
| Adjusted cost of produced coal sold | $ | 204,903 | $ | 32,164 | $ | 237,067 | |||||||||||
| Produced tons sold | 2,964 | 610 | 3,574 | ||||||||||||||
Adjusted cost of produced coal sold per ton (1) | $ | 69.13 | $ | 52.73 | $ | 66.33 | |||||||||||
(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 December 31, 2020 | |||||||||||||||||
| (In thousands, except for per ton data) | Met | All Other | Consolidated | ||||||||||||||
| Non-GAAP Cost of coal sales | $ | 222,288 | $ | 23,601 | $ | 245,889 | |||||||||||
| Less: cost of purchased coal sold | $ | (19,993) | $ | (93) | $ | (20,086) | |||||||||||
| Adjusted cost of produced coal sold | $ | 202,295 | $ | 23,508 | $ | 225,803 | |||||||||||
| Produced tons sold | $ | 2,939 | $ | 535 | $ | 3,474 | |||||||||||
Adjusted cost of produced coal sold per ton (1) | $ | 68.83 | $ | 43.94 | $ | 65.00 | |||||||||||
(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.