|
Contura Announces Third Quarter and Year-to-Date Results
BRISTOL, Tenn., Nov. 27, 2017 /PRNewswire/ -- Contura Energy, Inc., a leading U.S. coal supplier, today reported results for the third quarter and year-to-date through September 30, 2017.
Highlights include:
- Net Income of $10 million for the third quarter and $58 million for the year-to-date period
- Adjusted EBITDA of $51 million for the third quarter and $255 million year-to-date
- Paid $100.7 million in special dividend and equivalents in mid-July
- Eliminated approximately $70 million (at face value) of acquisition-related contingent obligations
- Extended tender offer expiration to December 15, 2017
|
(millions, except per share)
|
|
|
|
|
|
|
|
Third Quarter
2017
|
Year to Date
2017
|
|
Coal revenues
|
|
|
|
|
|
|
$417.9
|
$1,367.6
|
|
Net Income
|
|
|
|
|
|
|
$10.2
|
$57.9
|
|
Net Income per diluted share
|
|
|
|
|
|
|
$0.93
|
$5.34
|
|
Adjusted EBITDA1
|
|
|
|
|
|
|
$50.7
|
$255.4
|
|
Operating cash flow
|
|
|
|
|
|
|
$73.2
|
$245.9
|
|
Capital expenditures
|
|
|
|
|
|
|
$20.9
|
$56.4
|
|
Tons of coal sold
|
|
|
|
|
|
|
12.8
|
36.7
|
"Despite some temporary production challenges due to difficult geology at our Cumberland longwall mine in Northern Appalachia, we remained focused this past quarter on operating safe, productive mines, growing our profitable Trading and Logistics segment, and delivering shareholder value through dividends and share buybacks," said Kevin Crutchfield, chief executive officer. "During the third quarter, we returned more than $100 million to our shareholders in the form of a special dividend and equivalent, and initiated a tender offer to repurchase up to $31.8 million of common stock. The company continues to pursue accretive shareholder actions."
_________________________
1 These are non-GAAP financial measures. A reconciliation of net loss to adjusted EBITDA is included in tables accompanying the financial schedules. Contura is modifying its Adjusted EBITDA calculation to add back accretion expense, a non-cash expense.
Financial Performance
- Coal revenues in the third quarter were $417.9 million, with Central Appalachia (CAPP) accounting for $108.6 million and Trading and Logistics accounting for $144.9 million. On the thermal side, Northern Appalachia (NAPP) revenue totaled $65.7 million and the Powder River Basin (PRB) generated $98.8 million in coal sales. Freight and handling revenues and other revenues were $61.5 million and $3.5 million, respectively, in the third quarter.
CAPP coal shipments for the third quarter were 1.0 million tons at an average per-ton realization of $105.86. Contura shipped 9.0 million tons of PRB coal during the quarter at an average per-ton realization of $11.02, while NAPP shipments totaled 1.5 million tons at an average per-ton realization of $44.57. NAPP volumes were reduced due to a roof fall at the Cumberland underground longwall mine in mid-September. Full production resumed in mid-October and the company believes the production issues have been successfully mitigated. In the Trading and Logistics segment, 1.3 million tons of coal were shipped at an average price of $112.48 per ton.
For the year-to-date period through September 30, 2017, CAPP metallurgical coal shipments were 3.1 million tons at an average per-ton realization of $119.90. Contura shipped 24.5 million tons of PRB coal at an average per-ton realization of $10.94 through end of September, while NAPP shipments totaled 5.5 million tons at an average per-ton realization of $43.67. In the Trading and Logistics segment, 3.6 million tons of coal were shipped at an average price of $135.24 per ton.
- Total costs and expenses during the third quarter were $469.3 million and cost of coal sales was $358.6 million. The cost of coal sales in CAPP for the quarter averaged $74.10 per ton, including $1.92 per ton in idle costs. NAPP costs at $44.54 per ton were elevated due to the aforementioned roof fall, which impacted production during the last two weeks of the quarter. NAPP costs included idle costs of $1.37 per ton. The cost of coal sales for the PRB mines was $9.77 per ton during the third quarter. In the Trading and Logistics segment, the cost of coal sales during the third quarter was $100.45 per ton.
Total costs and expenses year-to-date were $1.44 billion and cost of coal sales was $1.09 billion. The cost of coal sales in CAPP averaged $74.06 per ton for the year-to-date period, while NAPP costs averaged $34.72 through the end of September. The cost of coal sales for the PRB mines for the same period was $10.02 per ton. In the Trading and Logistics segment, the cost of coal sales year-to-date was $116.77 per ton.
- Selling, general and administrative (SG&A) expenses for the third quarter were $15.9 million, which includes approximately $5.0 million in non-cash stock compensation and $1.7 million of charges related to the company's incentive bonus plans. Depreciation, depletion and amortization was $15.2 million during the third quarter and amortization of acquired intangibles was $14.9 million.
SG&A expenses for the year-to-date period were $56.1 million, which includes approximately $4.0 million of non-recurring expenses associated primarily with the company's filing of a registration statement with the Securities and Exchange Commission (SEC), approximately $11.3 million in stock compensation and approximately $5.1 million of charges related to the company's incentive bonus plans. The SG&A expenses also include approximately $9.1 million in expenses incurred in connection with the payout of the special dividend (in addition to $0.5 million of expenses recorded in cost of coal sales), comprised of $7.6 million of dividend equivalent payments and approximately $1.5 million of professional fees related to the special dividend. Approximately $1.5 million of business development expense is also included. Depreciation, depletion and amortization during the year-to-date period was $49.4 million and amortization of acquired intangibles was $49.1 million.
- Contura recorded a net income of $10.2 million, or $0.93 per diluted share for the third quarter and $57.9 million, or $5.34 per diluted share year-to-date.
- Adjusted EBITDA was $50.7 million for the quarter, excluding accretion expense of $5.5 million, secondary offering costs of $1.1 million and a $0.8 million mark-to-market adjustment for acquisition-related obligations. Adverse geologic conditions and the resulting roof fall at the Cumberland underground longwall mine in NAPP had an estimated third quarter EBITDA impact of approximately $18 million, compared to our expected results.
Year-to-date, Adjusted EBITDA was $255.4 million, excluding a $38.7 million loss on early extinguishment of debt, $16.6 million accretion expense, $9.6 million expense related to the payout of the special dividend, $9.2 million gain on settlement of acquisition-related obligations, $4.5 million in secondary offering costs and a $3.2 million mark-to-market adjustment for acquisition related obligations. Contura is modifying its Adjusted EBITDA calculation to add back accretion expense, a non-cash expense, in order to conform with peer reporting methodology.
Liquidity and Capital Resources
Cash provided by operating activities for the third quarter and year-to-date were $73.2 million and $245.9 million, respectively. Capital expenditures for the third quarter and year-to-date were $20.9 million and $56.4 million, respectively.
At the end of September, Contura had $173.5 million in unrestricted cash. Total long-term debt, including the current portion of long-term debt as of September 30, 2017, was approximately $375.2 million. At the end of September, the company had total liquidity of $287.2 million, including cash and cash equivalents of $173.5 million and $113.7 million unused commitments available under the Asset-Based Revolving Credit Facility.
During the third quarter, the company paid $100.7 million in special dividend and dividend equivalent payments. In September, Contura repurchased $17.4 million of its common stock shares at $56.40 per share. On November 6, 2017, the company extended to December 15, 2017 the expiration of its previously announced tender offer to repurchase an additional $31.8 million of its common stock.
Acquisition-related Liabilities Eliminated
Earlier this month, Contura also announced reduced liability obligations associated with its prior acquisition of certain core coal assets from Alpha Natural Resources on July 26, 2016. On October 24, 2017, Alpha announced the completion of a transaction with Lexington Coal Company (LCC), which included the transfer by Alpha to LCC of certain idle and non-active assets and other real and personal properties located in Kentucky, Tennessee and West Virginia.
As a result of that transaction, Contura eliminated approximately $35 million of Contingent Reclamation Funding liabilities, which had already been reduced from a face value of $50 million at the time of the acquisition. In addition, the Contingent Credit Support Commitment, under which Contura provided to Alpha borrowing capacity of $35 million, was terminated. Lastly, approximately $2.8 million in cash was released from restricted cash to operating cash on Contura's balance sheet.
2017 Full-Year Guidance
Contura is maintaining its recently updated guidance. As previously announced, the company expects total shipments to be in the range of 45.2 to 49.4 million tons across all operations, including 3.7 to 4.1 million tons of captive CAPP coal and 30 to 33 million tons of PRB coal. Contura reduced its NAPP shipment guidance to 6.9 to 7.3 million tons, due to temporary production delays resulting from the previously referenced roof fall at its Cumberland underground longwall mine in Greene County, Pennsylvania. The company believes the issue has been successfully mitigated. Full production resumed at Cumberland in mid-October.
In addition, total shipments through the company's Trading and Logistics segment are expected to be between 4.6 million and 5.0 million tons in 2017.
As of October 25, 2017, 85% of the midpoint of anticipated 2017 CAPP coal shipments were committed and priced at an average expected per-ton realization of $119.39, with the remaining 15% committed under an indexed pricing model. Based on the midpoint of guidance, 100% of anticipated 2017 NAPP steam coal shipments were committed and priced at an average expected per-ton realization of $43.79, and 99% of the midpoint of anticipated 2017 PRB shipments were committed and priced at an average expected per-ton realization of $10.92.
Contura expects its 2017 CAPP cost of coal sales per ton to range from $72.00 to $74.00. PRB cost of coal sales per ton is estimated at a range of $9.50 to $10.50, and NAPP between $33.00 and $37.00 per ton due to the aforementioned production delay. Additionally, costs related to the company's idle operations are expected to be between $13 million and $15 million for full-year 2017.
Capital expenditures estimates for 2017 are in a range of $80 million to $90 million, while SG&A guidance is estimated at $35 million to $38 million, excluding one-time and non-recurring items. Depreciation, depletion and amortization for 2017 is expected to be between $60 million and $80 million. The company expects 2017 cash interest expense to be between $38 million and $41 million. The cash interest expense reflects $19.25 million of cash interest payments that occurred in 2017, of which $12.9 million were accrued in 2016. These secured Contura notes were refinanced in March 2017 with a lower cost term loan credit facility. The company expects fourth quarter cash interest expense at approximately the current run-rate of $6.25 million per quarter.
|
in millions of tons
|
Low
|
High
|
|
CAPP
|
3.7
|
4.1
|
|
NAPP
|
6.9
|
7.3
|
|
PRB
|
30.0
|
33.0
|
|
Total Production
|
40.6
|
44.4
|
|
|
|
|
Contura Trading & Logistics
|
4.6
|
5.0
|
|
|
|
|
Total Shipments
|
45.2
|
49.4
|
|
|
|
|
Committed/Priced1,2,3
|
Committed
|
Average Price
|
|
CAPP4
|
85%
|
$119.39
|
|
NAPP
|
100%
|
$43.79
|
|
PRB
|
99%
|
$10.92
|
|
|
|
|
Committed/Indexed1,3
|
Committed
|
|
|
CAPP4
|
15%
|
|
|
|
|
|
Costs per ton
|
Low
|
High
|
|
CAPP
|
$72.00
|
$74.00
|
|
NAPP
|
$33.00
|
$37.00
|
|
PRB
|
$9.50
|
$10.50
|
|
|
|
|
Margin per ton
|
Low
|
High
|
|
Contura Trading & Logistics
|
$12
|
$16
|
|
|
|
|
In millions (except taxes)
|
Low
|
High
|
|
SG&A5
|
$35
|
$38
|
|
Idle Operations Expense
|
$13
|
$15
|
|
Cash Interest Expense
|
$38
|
$41
|
|
DD&A
|
$60
|
$80
|
|
Capital Expenditures
|
$80
|
$90
|
|
Tax Rate
|
10%
|
20%
|
Notes:
|
1.
|
Based on committed and priced coal shipments as of October 25, 2017. 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.
|
CAPP committed tons and price information represent captive Contura production and does not include Trading and Logistics.
|
|
5.
|
Excludes expenses related to the company's previous filing of a registration statement with the SEC, company formation expenses including non-cash stock compensation from formation-related stock plans, accrual of incentive bonus, costs associated with the special dividend, and non-recurring business development expenses.
|
Additional Information
For additional financial information about Contura, please visit www.conturaenergy.com/financials.
ABOUT CONTURA ENERGY
Contura Energy is a private, Tennessee-based, diversified coal supplier with affiliate mining operations across multiple major coal basins in Pennsylvania, Virginia, West Virginia and Wyoming. With customers across the globe, high-quality reserves and significant port capacity, Contura Energy reliably supplies both metallurgical coal to produce steel and thermal coal to generate power. For more information, visit www.conturaenergy.com.
FORWARD-LOOKING STATEMENTS
This news release includes forward-looking statements. These forward-looking statements are based on Contura'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 Contura's control. You should review the risks and uncertainties discussed in the company's condensed consolidated financial statements and report for the period ended September 30, 2017, which are available on our website. 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 Contura to predict these events or how they may affect Contura. Except as required by law, Contura 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@conturaenergy.com
Alex Rotonen, CFA
423.573.0396
MEDIA CONTACTS
corporatecommunications@conturaenergy.com
Rick Axthelm
423.573.0304
Emily O'Quinn
423.573.0369
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, Contura has presented the following non-GAAP financial measure: Adjusted EBITDA. The company uses Adjusted EBITDA to measure the operating performance of its segments and allocate resources to the segments. This non-GAAP financial measure excludes various items detailed in the attached reconciliation tables.
The definition of this non-GAAP measure may be changed periodically by management to adjust for significant items important to an understanding of operating trends. This measure is not intended to replace financial performance measures determined in accordance with GAAP. Rather, it is presented as a supplemental measure of the company's performance that management finds useful in assessing the company's financial performance and believes is useful to securities analysts, investors and others in assessing the company's performance over time. Moreover, this measure is not calculated identically by all companies and therefore may not be comparable to similarly titled measures used by other companies.
|
CONTURA ENERGY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS AND
CONDENSED PREDECESSOR COMBINED STATEMENT OF OPERATIONS
(Amounts in thousands, except share and per share data)
|
|
|
Successor
|
|
|
Predecessor
|
|
Three Months
Ended
September 30,
2017
|
|
Nine Months
Ended
September 30,
2017
|
|
Period from
July 26, 2016 to
September 30,
2016
|
|
|
Period from
July 1, 2016 to
July 25, 2016
|
|
Period from
January 1,
2016 to July 25,
2016
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
|
Unaudited
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
Coal revenues
|
$
|
417,933
|
|
|
$
|
1,367,597
|
|
|
$
|
212,911
|
|
|
|
$
|
67,685
|
|
|
$
|
537,320
|
|
|
Freight and handling revenues
|
61,492
|
|
|
191,411
|
|
|
29,903
|
|
|
|
4,292
|
|
|
52,076
|
|
|
Other revenues
|
3,504
|
|
|
11,164
|
|
|
2,599
|
|
|
|
10,313
|
|
|
18,542
|
|
|
Total revenues
|
482,929
|
|
|
1,570,172
|
|
|
245,413
|
|
|
|
82,290
|
|
|
607,938
|
|
|
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
Cost of coal sales (exclusive of items shown separately below)
|
358,620
|
|
|
1,087,828
|
|
|
178,396
|
|
|
|
55,446
|
|
|
489,652
|
|
|
Freight and handling costs
|
61,492
|
|
|
191,411
|
|
|
29,903
|
|
|
|
4,292
|
|
|
52,076
|
|
|
Other expenses
|
1,326
|
|
|
3,752
|
|
|
1,092
|
|
|
|
726
|
|
|
4,893
|
|
|
Depreciation, depletion and amortization
|
15,154
|
|
|
49,431
|
|
|
22,230
|
|
|
|
10,659
|
|
|
85,379
|
|
|
Amortization of acquired intangibles, net
|
14,868
|
|
|
49,111
|
|
|
23,562
|
|
|
|
11,104
|
|
|
11,567
|
|
|
Selling, general and administrative expenses (exclusive of depreciation, depletion and amortization shown separately above)
|
15,946
|
|
|
56,094
|
|
|
9,547
|
|
|
|
3,477
|
|
|
29,567
|
|
|
Asset impairment and restructuring
|
—
|
|
|
—
|
|
|
—
|
|
|
|
618
|
|
|
3,755
|
|
|
Secondary offering costs
|
1,061
|
|
|
4,499
|
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
Total other operating (income) loss:
|
|
|
|
|
|
|
|
|
|
|
|
Mark-to-market adjustment for acquisition-related obligations
|
839
|
|
|
3,221
|
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
Gain on settlement of acquisition-related obligations
|
—
|
|
|
(9,200)
|
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
Total costs and expenses
|
469,306
|
|
|
1,436,147
|
|
|
264,730
|
|
|
|
86,322
|
|
|
676,889
|
|
|
Income (loss) from operations
|
13,623
|
|
|
134,025
|
|
|
(19,317)
|
|
|
|
(4,032)
|
|
|
(68,951)
|
|
|
Other (expense) income:
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
(8,598)
|
|
|
(28,373)
|
|
|
(9,090)
|
|
|
|
(22)
|
|
|
(63)
|
|
|
Interest income
|
43
|
|
|
116
|
|
|
2
|
|
|
|
(22)
|
|
|
29
|
|
|
Loss on early extinguishment of debt
|
—
|
|
|
(38,701)
|
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
Equity loss in affiliates
|
(405)
|
|
|
(2,106)
|
|
|
(1,039)
|
|
|
|
(104)
|
|
|
(2,726)
|
|
|
Mark-to-market adjustment for warrant derivative liability
|
—
|
|
|
—
|
|
|
(16,552)
|
|
|
|
—
|
|
|
—
|
|
|
Bargain purchase gain
|
369
|
|
|
1,011
|
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
Miscellaneous income, net
|
51
|
|
|
278
|
|
|
201
|
|
|
|
9
|
|
|
683
|
|
|
Total other expense, net
|
(8,540)
|
|
|
(67,775)
|
|
|
(26,478)
|
|
|
|
(139)
|
|
|
(2,077)
|
|
|
Income (loss) before reorganization items and income taxes
|
5,083
|
|
|
66,250
|
|
|
(45,795)
|
|
|
|
(4,171)
|
|
|
(71,028)
|
|
|
Reorganization items, net
|
—
|
|
|
—
|
|
|
—
|
|
|
|
(4,773)
|
|
|
(31,073)
|
|
|
Income (loss) before income taxes
|
5,083
|
|
|
66,250
|
|
|
(45,795)
|
|
|
|
(8,944)
|
|
|
(102,101)
|
|
|
Income tax benefit (expense)
|
5,076
|
|
|
(8,369)
|
|
|
(1)
|
|
|
|
1,981
|
|
|
34,889
|
|
|
Net income (loss)
|
$
|
10,159
|
|
|
$
|
57,881
|
|
|
$
|
(45,796)
|
|
|
|
$
|
(6,963)
|
|
|
$
|
(67,212)
|
|
|
Basic income (loss) per common share
|
$
|
0.99
|
|
|
$
|
5.62
|
|
|
$
|
(4.44)
|
|
|
|
|
|
|
|
Diluted income (loss) per common share
|
$
|
0.93
|
|
|
$
|
5.34
|
|
|
$
|
(4.44)
|
|
|
|
|
|
|
|
Weighted average shares - basic
|
10,277,974
|
|
|
10,298,889
|
|
|
10,309,310
|
|
|
|
|
|
|
|
Weighted average shares - diluted
|
10,896,856
|
|
|
10,832,989
|
|
|
10,309,310
|
|
|
|
|
|
|
|
CONTURA ENERGY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except share and per share data)
|
|
|
Successor
|
|
September 30, 2017
|
|
December 31, 2016
|
|
(Unaudited)
|
|
|
|
Assets
|
|
|
|
|
Current assets:
|
|
|
|
|
Cash and cash equivalents
|
$
|
173,490
|
|
|
$
|
127,948
|
|
|
Trade accounts receivable, net of allowance for doubtful accounts of $0 as of September 30, 2017 and December 31, 2016
|
178,979
|
|
|
182,600
|
|
|
Inventories, net
|
61,866
|
|
|
75,399
|
|
|
Assets held for sale
|
—
|
|
|
1,714
|
|
|
Prepaid expenses and other current assets
|
55,370
|
|
|
37,555
|
|
|
Total current assets
|
469,705
|
|
|
425,216
|
|
|
Property, plant, and equipment, net
|
326,247
|
|
|
317,013
|
|
|
Other acquired intangibles (net of accumulated amortization of $110,962 and $61,851 as of September 30, 2017 and December 31, 2016, respectively)
|
38,038
|
|
|
87,149
|
|
|
Long-term restricted cash
|
57,364
|
|
|
43,341
|
|
|
Long-term deposits
|
17,153
|
|
|
55,501
|
|
|
Other non-current assets
|
23,570
|
|
|
18,532
|
|
|
Total assets
|
$
|
932,077
|
|
|
$
|
946,752
|
|
|
Liabilities and Stockholders' Equity
|
|
|
|
|
Current liabilities:
|
|
|
|
|
Current portion of long-term debt
|
$
|
8,420
|
|
|
$
|
2,324
|
|
|
Trade accounts payable
|
107,298
|
|
|
98,166
|
|
|
Acquisition-related obligations - current
|
19,545
|
|
|
27,258
|
|
|
Accrued expenses and other current liabilities
|
91,310
|
|
|
90,864
|
|
|
Total current liabilities
|
226,573
|
|
|
218,612
|
|
|
Long-term debt
|
366,789
|
|
|
346,837
|
|
|
Acquisition-related obligations - long-term
|
44,476
|
|
|
59,088
|
|
|
Asset retirement obligations
|
199,528
|
|
|
187,097
|
|
|
Other non-current liabilities
|
63,637
|
|
|
97,894
|
|
|
Total liabilities
|
901,003
|
|
|
909,528
|
|
|
Commitments and Contingencies
|
|
|
|
|
Stockholders' Equity
|
|
|
|
|
Preferred stock - par value $0.01, 2.0 million shares authorized, none issued
|
—
|
|
|
—
|
|
|
Common stock - par value $0.01, 20.0 million shares authorized, 10.8 million issued and 10.5 million outstanding at September 30, 2017 and 10.3 million issued and outstanding at December 31, 2016
|
108
|
|
|
103
|
|
|
Additional paid-in capital
|
37,236
|
|
|
45,964
|
|
|
Accumulated other comprehensive income
|
1,018
|
|
|
2,087
|
|
|
Treasury stock, at cost: 0.3 million shares at September 30, 2017 and none issued at December 31, 2016
|
(17,447)
|
|
|
—
|
|
|
Retained earnings (accumulated deficit)
|
10,159
|
|
|
(10,930)
|
|
|
Total stockholders' equity
|
31,074
|
|
|
37,224
|
|
|
Total liabilities and stockholders' equity
|
$
|
932,077
|
|
|
$
|
946,752
|
|
|
CONTURA ENERGY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS AND
CONDENSED PREDECESSOR COMBINED STATEMENT OF CASH FLOWS
(Amounts in thousands)
|
|
|
Successor
|
|
|
Predecessor
|
|
Nine Months
Ended September
30, 2017
|
|
Period from
July 26, 2016 to
September 30,
2016
|
|
|
Period from
January 1, 2016
to July 25, 2016
|
|
Unaudited
|
|
Unaudited
|
|
|
|
|
Operating activities:
|
|
|
|
|
|
|
|
Net income (loss)
|
$
|
57,881
|
|
|
$
|
(45,796)
|
|
|
|
$
|
(67,212)
|
|
|
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
|
|
|
|
|
|
|
|
Depreciation, depletion and amortization
|
49,431
|
|
|
22,230
|
|
|
|
85,379
|
|
|
Amortization of acquired intangibles, net
|
49,111
|
|
|
23,562
|
|
|
|
11,567
|
|
|
Accretion of acquisition-related obligations discount
|
5,954
|
|
|
2,633
|
|
|
|
—
|
|
|
Mark-to-market adjustment for acquisition-related obligations
|
3,221
|
|
|
—
|
|
|
|
—
|
|
|
Gain on settlement of acquisition-related obligations
|
(9,200)
|
|
|
—
|
|
|
|
—
|
|
|
Bargain purchase gain
|
(1,011)
|
|
|
—
|
|
|
|
—
|
|
|
Equity loss in affiliates
|
2,106
|
|
|
1,039
|
|
|
|
2,726
|
|
|
Mark-to-market adjustment for warrant derivative liability
|
—
|
|
|
16,552
|
|
|
|
—
|
|
|
Accretion of asset retirement obligations
|
16,573
|
|
|
4,569
|
|
|
|
12,422
|
|
|
Employee benefit plans, net
|
8,459
|
|
|
1,180
|
|
|
|
11,917
|
|
|
Deferred income taxes
|
—
|
|
|
—
|
|
|
|
(34,889)
|
|
|
Asset impairment and restructuring
|
—
|
|
|
—
|
|
|
|
3,755
|
|
|
Non-cash reorganization items, net
|
—
|
|
|
—
|
|
|
|
3,837
|
|
|
Non-cash loss on extinguishment of debt
|
13,665
|
|
|
—
|
|
|
|
—
|
|
|
Stock-based compensation
|
11,946
|
|
|
1,941
|
|
|
|
658
|
|
|
Other, net
|
1,616
|
|
|
216
|
|
|
|
254
|
|
|
Changes in operating assets and liabilities
|
36,157
|
|
|
6,361
|
|
|
|
30,276
|
|
|
Net cash provided by operating activities
|
245,909
|
|
|
34,487
|
|
|
|
60,690
|
|
|
Investing activities:
|
|
|
|
|
|
|
|
Capital expenditures
|
(56,403)
|
|
|
(12,773)
|
|
|
|
(23,433)
|
|
|
Proceeds from sale of property, plant and equipment
|
2,449
|
|
|
453
|
|
|
|
526
|
|
|
Capital contributions to equity affiliates
|
(4,160)
|
|
|
(870)
|
|
|
|
(2,122)
|
|
|
Cash acquired in acquisition
|
—
|
|
|
51,000
|
|
|
|
—
|
|
|
Purchase of additional ownership interest in equity affiliate
|
(13,293)
|
|
|
—
|
|
|
|
—
|
|
|
Other, net
|
(408)
|
|
|
—
|
|
|
|
—
|
|
|
Net cash (used in) provided by investing activities
|
(71,815)
|
|
|
37,810
|
|
|
|
(25,029)
|
|
|
Financing activities:
|
|
|
|
|
|
|
|
Proceeds from borrowings on debt
|
396,000
|
|
|
—
|
|
|
|
—
|
|
|
Principal repayments of debt
|
(368,500)
|
|
|
—
|
|
|
|
—
|
|
|
Principal repayments of capital lease obligations
|
(798)
|
|
|
(83)
|
|
|
|
(42)
|
|
|
Debt issuance costs
|
(14,385)
|
|
|
—
|
|
|
|
—
|
|
|
Debt extinguishment costs
|
(25,036)
|
|
|
—
|
|
|
|
—
|
|
|
Common stock repurchases
|
(17,445)
|
|
|
—
|
|
|
|
—
|
|
|
Debt amendment costs
|
(4,520)
|
|
|
—
|
|
|
|
—
|
|
|
Proceeds from exercise of warrants
|
11
|
|
|
—
|
|
|
|
—
|
|
|
Special dividend paid
|
(92,786)
|
|
|
—
|
|
|
|
—
|
|
|
Principal repayments of notes payable
|
(1,093)
|
|
|
(167)
|
|
|
|
—
|
|
|
Transfers to Alpha
|
—
|
|
|
—
|
|
|
|
(35,780)
|
|
|
Net cash used in financing activities
|
(128,552)
|
|
|
(250)
|
|
|
|
(35,822)
|
|
|
Net increase (decrease) in cash and cash equivalents
|
45,542
|
|
|
72,047
|
|
|
|
(161)
|
|
|
Cash and cash equivalents at beginning of period
|
127,948
|
|
|
—
|
|
|
|
269
|
|
|
Cash and cash equivalents at end of period
|
$
|
173,490
|
|
|
$
|
72,047
|
|
|
|
$
|
108
|
|
|
|
|
|
|
|
|
|
Supplemental cash flow information:
|
|
|
|
|
|
|
|
Cash paid for interest
|
$
|
34,091
|
|
|
$
|
127
|
|
|
|
$
|
—
|
|
|
Cash paid for income taxes
|
$
|
13,328
|
|
|
$
|
—
|
|
|
|
$
|
—
|
|
|
Supplemental disclosure of non-cash investing and financing activities:
|
|
|
|
|
|
|
|
Capital leases and capital financing - equipment
|
$
|
735
|
|
|
$
|
751
|
|
|
|
$
|
—
|
|
|
Accrued capital expenditures
|
$
|
9,169
|
|
|
$
|
6,374
|
|
|
|
$
|
13,376
|
|
|
Issuance of equity in connection with acquisition
|
$
|
—
|
|
|
$
|
44,644
|
|
|
|
$
|
—
|
|
|
CONTURA ENERGY, INC. AND SUBSIDIARIES
ADJUSTED EBITDA RECONCILIATION
(Amounts in thousands)
|
|
|
Reconciliation of Non-GAAP measures:
|
|
|
Successor
|
|
Three Months Ended September 30, 2017
|
|
CAPP
|
|
NAPP
|
|
PRB
|
|
Trading and
Logistics
|
|
All Other
|
|
Consolidated
|
|
Net income (loss)
|
$
|
30,238
|
|
|
$
|
(3,300)
|
|
|
$
|
3,724
|
|
|
$
|
613
|
|
|
$
|
(21,116)
|
|
|
$
|
10,159
|
|
|
Interest expense
|
1
|
|
|
(264)
|
|
|
132
|
|
|
—
|
|
|
8,729
|
|
|
8,598
|
|
|
Interest income
|
(3)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(40)
|
|
|
(43)
|
|
|
Income tax benefit
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5,076)
|
|
|
(5,076)
|
|
|
Depreciation, depletion and amortization
|
2,736
|
|
|
4,544
|
|
|
7,650
|
|
|
—
|
|
|
224
|
|
|
15,154
|
|
|
Mark-to-market adjustment - acquisition-related obligations
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
839
|
|
|
839
|
|
|
Secondary offering costs
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,061
|
|
|
1,061
|
|
|
Bargain purchase gain
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(369)
|
|
|
(369)
|
|
|
Accretion expense
|
1,461
|
|
|
1,041
|
|
|
3,022
|
|
|
—
|
|
|
—
|
|
|
5,524
|
|
|
Amortization of acquired intangibles, net
|
—
|
|
|
—
|
|
|
—
|
|
|
14,868
|
|
|
—
|
|
|
14,868
|
|
|
Adjusted EBITDA (1)
|
$
|
34,433
|
|
|
$
|
2,021
|
|
|
$
|
14,528
|
|
|
$
|
15,481
|
|
|
$
|
(15,748)
|
|
|
$
|
50,715
|
|
|
|
(1) Our Adjusted EBITDA calculation has been modified to add back accretion expense, a non-cash expense, to
align with industry peer group methodology.
|
|
|
|
Segment Information:
|
|
|
Successor
|
|
Three Months Ended September 30, 2017
|
|
CAPP
|
|
NAPP
|
|
PRB
|
|
Trading and
Logistics
|
|
All Other
|
|
Consolidated
|
|
Total revenues
|
$
|
108,996
|
|
|
$
|
66,624
|
|
|
$
|
100,392
|
|
|
$
|
206,749
|
|
|
$
|
168
|
|
|
$
|
482,929
|
|
|
Depreciation, depletion, and amortization
|
$
|
2,736
|
|
|
$
|
4,544
|
|
|
$
|
7,650
|
|
|
$
|
—
|
|
|
$
|
224
|
|
|
$
|
15,154
|
|
|
Amortization of acquired intangibles, net
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
14,868
|
|
|
$
|
—
|
|
|
$
|
14,868
|
|
|
Adjusted EBITDA (1)
|
$
|
34,433
|
|
|
$
|
2,021
|
|
|
$
|
14,528
|
|
|
$
|
15,481
|
|
|
$
|
(15,748)
|
|
|
$
|
50,715
|
|
|
Capital expenditures
|
$
|
3,645
|
|
|
$
|
14,156
|
|
|
$
|
3,093
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
20,894
|
|
|
|
(1) Our Adjusted EBITDA calculation has been modified to add back accretion expense, a non-cash expense, to
align with industry peer group methodology.
|
|
CONTURA ENERGY, INC. AND SUBSIDIARIES
ADJUSTED EBITDA RECONCILIATION
(Amounts in thousands)
|
|
|
Reconciliation of Non-GAAP measures:
|
|
|
Successor
|
|
Nine Months Ended September 30, 2017
|
|
CAPP
|
|
NAPP
|
|
PRB
|
|
Trading and
Logistics
|
|
All Other
|
|
Consolidated
|
|
Net income (loss)
|
$
|
128,584
|
|
|
$
|
41,855
|
|
|
$
|
(276)
|
|
|
$
|
17,203
|
|
|
$
|
(129,485)
|
|
|
$
|
57,881
|
|
|
Interest expense
|
(92)
|
|
|
(633)
|
|
|
293
|
|
|
—
|
|
|
28,805
|
|
|
28,373
|
|
|
Interest income
|
(8)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(108)
|
|
|
(116)
|
|
|
Income tax expense
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,369
|
|
|
8,369
|
|
|
Depreciation, depletion and amortization
|
13,447
|
|
|
11,206
|
|
|
24,139
|
|
|
—
|
|
|
639
|
|
|
49,431
|
|
|
Mark-to-market adjustment - acquisition-related obligations
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,221
|
|
|
3,221
|
|
|
Gain on settlement of acquisition-related obligations
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(9,200)
|
|
|
(9,200)
|
|
|
Secondary offering costs
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,499
|
|
|
4,499
|
|
|
Loss on early extinguishment of debt
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
38,701
|
|
|
38,701
|
|
|
Bargain purchase gain
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,011)
|
|
|
(1,011)
|
|
|
Accretion expense
|
4,384
|
|
|
3,123
|
|
|
9,066
|
|
|
—
|
|
|
—
|
|
|
16,573
|
|
|
Amortization of acquired intangibles, net
|
—
|
|
|
—
|
|
|
—
|
|
|
49,111
|
|
|
—
|
|
|
49,111
|
|
|
Expenses related to special dividend
|
377
|
|
|
57
|
|
|
67
|
|
|
—
|
|
|
9,102
|
|
|
9,603
|
|
|
Adjusted EBITDA (1)
|
$
|
146,692
|
|
|
$
|
55,608
|
|
|
$
|
33,289
|
|
|
$
|
66,314
|
|
|
$
|
(46,468)
|
|
|
$
|
255,435
|
|
|
(1) Our Adjusted EBITDA calculation has been modified to add back accretion expense, a non-cash expense, to
align with industry peer group methodology.
|
|
|
|
Segment Information:
|
|
|
Successor
|
|
Nine Months Ended September 30, 2017
|
|
CAPP
|
|
NAPP
|
|
PRB
|
|
Trading and
Logistics
|
|
All Other
|
|
Consolidated
|
|
Total revenues
|
$
|
369,600
|
|
|
$
|
243,604
|
|
|
$
|
272,848
|
|
|
$
|
683,558
|
|
|
$
|
562
|
|
|
$
|
1,570,172
|
|
|
Depreciation, depletion, and
amortization
|
$
|
13,447
|
|
|
$
|
11,206
|
|
|
$
|
24,139
|
|
|
$
|
—
|
|
|
$
|
639
|
|
|
$
|
49,431
|
|
|
Amortization of acquired intangibles,
net
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
49,111
|
|
|
$
|
—
|
|
|
$
|
49,111
|
|
|
Adjusted EBITDA (1)
|
$
|
146,692
|
|
|
$
|
55,608
|
|
|
$
|
33,289
|
|
|
$
|
66,314
|
|
|
$
|
(46,468)
|
|
|
$
|
255,435
|
|
|
Capital expenditures
|
$
|
10,834
|
|
|
$
|
36,365
|
|
|
$
|
8,145
|
|
|
$
|
—
|
|
|
$
|
1,059
|
|
|
$
|
56,403
|
|
|
(1) Our Adjusted EBITDA calculation has been modified to add back accretion expense, a non-cash expense, to
align with industry peer group methodology.
|
|
CONTURA ENERGY, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS
(Amounts in thousands, except per ton data)
|
|
|
Three Months Ended
September 30, 2017
|
|
% of Total
Revenues
|
|
Nine Months Ended
September 30, 2017
|
|
% of Total
Revenues
|
|
Revenues:
|
|
|
|
|
|
|
|
|
Coal revenues:
|
|
|
|
|
|
|
|
|
Steam
|
$
|
159,439
|
|
|
33.0
|
%
|
|
$
|
494,458
|
|
|
31.5
|
%
|
|
Met
|
258,494
|
|
|
53.5
|
%
|
|
873,139
|
|
|
55.6
|
%
|
|
Freight and handling revenues
|
61,492
|
|
|
12.8
|
%
|
|
191,411
|
|
|
12.2
|
%
|
|
Other revenues
|
3,504
|
|
|
0.7
|
%
|
|
11,164
|
|
|
0.7
|
%
|
|
Total revenues
|
$
|
482,929
|
|
|
100.0
|
%
|
|
$
|
1,570,172
|
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
Tons sold:
|
|
|
|
|
|
|
|
|
Steam
|
10,362
|
|
|
|
|
29,822
|
|
|
|
|
Met
|
2,389
|
|
|
|
|
6,855
|
|
|
|
|
Total
|
12,751
|
|
|
|
|
36,677
|
|
|
|
|
|
|
|
|
|
|
|
|
Coal sales realization per ton:
|
|
|
|
|
|
|
|
|
Steam
|
15.39
|
|
|
|
|
16.58
|
|
|
|
|
Met
|
108.20
|
|
|
|
|
127.37
|
|
|
|
|
Average
|
32.78
|
|
|
|
|
37.29
|
|
|
|
|
|
|
Three Months Ended
September 30, 2017
|
|
% of Total
Revenues
|
|
Nine Months Ended
September 30, 2017
|
|
% of Total
Revenues
|
|
Coal revenues (1):
|
|
|
|
|
|
|
|
|
CAPP Operations
|
$
|
108,611
|
|
|
22.5
|
%
|
|
$
|
368,586
|
|
|
23.5
|
%
|
|
NAPP Operations
|
65,699
|
|
|
13.6
|
%
|
|
240,700
|
|
|
15.3
|
%
|
|
PRB Operations
|
98,755
|
|
|
20.4
|
%
|
|
267,519
|
|
|
17.0
|
%
|
|
Trading and Logistics Operations
|
144,868
|
|
|
30.0
|
%
|
|
490,792
|
|
|
31.3
|
%
|
|
Total coal revenues
|
$
|
417,933
|
|
|
86.5
|
%
|
|
$
|
1,367,597
|
|
|
87.1
|
%
|
|
Tons sold:
|
|
|
|
|
|
|
|
|
CAPP Operations
|
1,026
|
|
|
|
|
3,074
|
|
|
|
|
NAPP Operations
|
1,474
|
|
|
|
|
5,512
|
|
|
|
|
PRB Operations
|
8,963
|
|
|
|
|
24,462
|
|
|
|
|
Trading and Logistics Operations
|
1,288
|
|
|
|
|
3,629
|
|
|
|
|
|
|
|
|
|
|
|
|
Coal sales realization per ton (1):
|
|
|
|
|
|
|
|
|
CAPP Operations
|
105.86
|
|
|
|
|
119.90
|
|
|
|
|
NAPP Operations
|
44.57
|
|
|
|
|
43.67
|
|
|
|
|
PRB Operations
|
11.02
|
|
|
|
|
10.94
|
|
|
|
|
Trading and Logistics Operations
|
112.48
|
|
|
|
|
135.24
|
|
|
|
|
Average
|
32.78
|
|
|
|
|
37.29
|
|
|
|
|
(1) Does not include any portion of the price paid by our export customers to transport coal to the relevant
outbound shipping port.
|
|
CONTURA ENERGY, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS
(Amounts in thousands, except per ton data)
|
|
|
Three Months
Ended September
30, 2017
|
|
% of Total
Revenues
|
|
Nine Months Ended
September 30, 2017
|
|
% of Total
Revenues
|
|
Cost of coal sales (exclusive of items shown separately below)
|
358,620
|
|
|
74.3
|
%
|
|
1,087,828
|
|
|
69.3
|
%
|
|
Freight and handling costs
|
61,492
|
|
|
12.7
|
%
|
|
191,411
|
|
|
12.2
|
%
|
|
Other expenses
|
1,326
|
|
|
0.3
|
%
|
|
3,752
|
|
|
0.2
|
%
|
|
Depreciation, depletion and amortization
|
15,154
|
|
|
3.1
|
%
|
|
49,431
|
|
|
3.1
|
%
|
|
Amortization of acquired intangibles, net
|
14,868
|
|
|
3.1
|
%
|
|
49,111
|
|
|
3.1
|
%
|
|
Selling, general and administrative expenses (exclusive of depreciation, depletion and amortization shown separately above)
|
15,946
|
|
|
3.3
|
%
|
|
56,094
|
|
|
3.6
|
%
|
|
Secondary offering costs
|
1,061
|
|
|
0.2
|
%
|
|
4,499
|
|
|
0.3
|
%
|
|
Total other operating (income) loss:
|
|
|
|
|
|
|
|
|
Mark-to-market adjustment for acquisition-related obligations
|
839
|
|
|
0.2
|
%
|
|
3,221
|
|
|
0.2
|
%
|
|
Gain (loss) on settlement of acquisition-related obligations
|
—
|
|
|
—
|
%
|
|
(9,200)
|
|
|
(0.6)
|
%
|
|
Total costs and expenses
|
$
|
469,306
|
|
|
97.2
|
%
|
|
$
|
1,436,147
|
|
|
91.5
|
%
|
|
Other (expense) income:
|
|
|
|
|
|
|
|
|
Interest expense
|
(8,598)
|
|
|
(1.8)
|
%
|
|
(28,373)
|
|
|
(1.8)
|
%
|
|
Interest income
|
43
|
|
|
—
|
%
|
|
116
|
|
|
—
|
%
|
|
Loss on early extinguishment of debt
|
—
|
|
|
—
|
%
|
|
(38,701)
|
|
|
(2.5)
|
%
|
|
Equity loss in affiliates
|
(405)
|
|
|
(0.1)
|
%
|
|
(2,106)
|
|
|
(0.1)
|
%
|
|
Bargain purchase gain
|
369
|
|
|
0.1
|
%
|
|
1,011
|
|
|
0.1
|
%
|
|
Miscellaneous income, net
|
51
|
|
|
—
|
%
|
|
278
|
|
|
—
|
%
|
|
Total other expense, net
|
(8,540)
|
|
|
(1.8)
|
%
|
|
(67,775)
|
|
|
(4.3)
|
%
|
|
Income tax expense
|
5,076
|
|
|
1.1
|
%
|
|
(8,369)
|
|
|
(0.5)
|
%
|
|
Net income
|
$
|
10,159
|
|
|
2.1
|
%
|
|
$
|
57,881
|
|
|
3.7
|
%
|
|
|
|
|
|
|
|
|
|
Cost of coal sales:
|
|
|
|
|
|
|
|
|
CAPP Operations
|
76,027
|
|
|
15.7
|
%
|
|
227,672
|
|
|
14.5
|
%
|
|
NAPP Operations
|
65,645
|
|
|
13.6
|
%
|
|
191,357
|
|
|
12.2
|
%
|
|
PRB Operations
|
87,574
|
|
|
18.1
|
%
|
|
245,044
|
|
|
15.6
|
%
|
|
Trading and Logistics Operations
|
129,374
|
|
|
26.8
|
%
|
|
423,755
|
|
|
27.0
|
%
|
|
|
|
|
|
|
|
|
|
Tons sold:
|
|
|
|
|
|
|
|
|
CAPP Operations
|
1,026
|
|
|
|
|
3,074
|
|
|
|
|
NAPP Operations
|
1,474
|
|
|
|
|
5,512
|
|
|
|
|
PRB Operations
|
8,963
|
|
|
|
|
24,462
|
|
|
|
|
Trading and Logistics Operations
|
1,288
|
|
|
|
|
3,629
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of coal sales per ton:
|
|
|
|
|
|
|
|
|
CAPP Operations
|
74.10
|
|
|
|
|
74.06
|
|
|
|
|
NAPP Operations
|
44.54
|
|
|
|
|
34.72
|
|
|
|
|
PRB Operations
|
9.77
|
|
|
|
|
10.02
|
|
|
|
|
Trading and Logistics Operations
|
100.45
|
|
|
|
|
116.77
|
|
|
|
|
|
|
|
|
|
|
|
|
Coal margin per ton (1):
|
|
|
|
|
|
|
|
|
CAPP Operations
|
31.76
|
|
|
|
|
45.84
|
|
|
|
|
NAPP Operations
|
0.03
|
|
|
|
|
8.95
|
|
|
|
|
PRB Operations
|
1.25
|
|
|
|
|
0.92
|
|
|
|
|
Trading and Logistics Operations
|
12.03
|
|
|
|
|
18.47
|
|
|
|
|
(1)
|
Coal margin per ton for our reportable segments is calculated as coal sales realization per ton for our reportable segments less cost of coal sales per ton for our reportable segments. Coal margin per ton is not shown for our All Other category since it has no coal sales or coal production.
|
View original content with multimedia:http://www.prnewswire.com/news-releases/contura-announces-third-quarter-and-year-to-date-results-300562119.html
SOURCE Contura Energy, Inc.
Source: PR Newswire
(November 27, 2017 - 4:30 PM EST)
News by QuoteMedia
www.quotemedia.com |
