- Reports first quarter net income from continuing operations
of $401.0 million
- Posts Adjusted EBITDA of $503.8
million for the first quarter 2022
- Continues aggressive prepayment of debt, bringing
outstanding term loan borrowings to just under $100 million
- Increases existing share repurchase program authorization to
$600 million
- Announces $1.50 per share
annual cash dividend to be paid quarterly
- Adjusts full-year guidance for metallurgical cost of coal
sales per ton and cash interest expense
BRISTOL, Tenn., May 5, 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 first quarter ending March
31, 2022.
|
(millions, except per
share)
|
|
Three months
ended
|
|
Mar. 31,
2022
|
Dec. 31,
2021
|
Mar. 31,
2021
|
|
Net income
(loss)(2)
|
$401.0
|
$254.5
|
($32.7)
|
|
Net income
(loss)(2) per diluted share
|
$20.52
|
$13.30
|
($1.78)
|
|
Adjusted
EBITDA(1)
|
$503.8
|
$315.8
|
$28.9
|
|
Operating cash
flow(3)
|
$336.1
|
$104.3
|
($19.1)
|
|
Capital
expenditures(3)
|
($28.1)
|
($22.9)
|
($20.4)
|
|
Tons of coal
sold(2)
|
4.0
|
4.0
|
4.1
|
__________________________________
|
|
|
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 team has performed exceptionally well, beating last
quarter's record performance and hitting a new milestone of over
$500 million in Adjusted EBITDA for
the quarter," said David Stetson,
Alpha's chair and chief executive officer. "The current met market
strength has significantly accelerated Alpha's progress in
deleveraging the company. Together with the unwavering vision of
our management team, these conditions have laid the groundwork for
a new chapter in our company's history, and we now expect to fully
extinguish our term loan in the second quarter. I am looking
forward to the day when we can announce this important target has
been achieved. For now, having brought Alpha's term loan balance to
under $100 million with a payment
subsequent to quarter end, I am pleased to celebrate yet another
step toward this goal."
Stetson continued: "Additionally, as we continue to prioritize
shareholder value and capital return, our board of directors
approved a substantial increase in authorization for our current
share buyback program, bringing that to a level of $600 million. The board is also instituting a
dividend at an annualized rate of $1.50 per share to be paid quarterly, with the
first quarterly payment of $0.375 per
share to be paid on July
1st to shareholders of record on June 15, 2022. With increased visibility into our
cash flow projections for the balance of this year, we believe
these are prudent and important steps to share Alpha's success with
our investors."
The company's annual meeting of stockholders was held on
May 3, 2022, and all members of
Alpha's board of directors were re-elected to continue their
service. The complete voting results from our annual meeting will
be filed with the SEC on Form 8-K.
Financial Performance
Alpha reported net income from continuing operations of
$401.0 million, or $20.52 per diluted share, for the first quarter
2022. In the prior period, the company had net income from
continuing operations of $254.5
million or $13.30 per diluted
share for the fourth quarter 2021.
First quarter 2022 total Adjusted EBITDA was $503.8 million, compared with $315.8 million in the fourth quarter
2021.
Coal Revenues
|
(millions)
|
|
Three months
ended
|
|
Mar. 31,
2022
|
Dec. 31,
2021
|
|
Met
Segment
|
$1,054.3
|
$811.5
|
|
All
Other
|
$15.4
|
$15.0
|
|
|
|
|
Met Segment (excl.
freight & handling)(1)
|
$910.3
|
$683.6
|
|
All Other (excl.
freight & handling)(1)
|
$15.4
|
$15.0
|
|
|
|
|
|
Tons Sold
|
(millions)
|
|
Three months
ended
|
|
Mar. 31,
2022
|
Dec. 31,
2021
|
|
Met
Segment
|
3.8
|
3.8
|
|
All
Other
|
0.3
|
0.2
|
__________________________________
|
|
|
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
|
|
Mar. 31,
2022
|
Dec. 31,
2021
|
|
Met
Segment
|
$240.82
|
$180.66
|
|
All
Other
|
$57.39
|
$62.56
|
__________________________________
|
|
|
1.
|
Represents Non-GAAP
coal sales realization which is defined and reconciled under
"Non-GAAP Financial Measures" and "Results of
Operations."
|
Our net realized pricing for the Met segment was $240.82 per ton in the first quarter 2022, while
net realization in the All Other category was $57.39.
"As expected, we continue to see the positive impact of the
metallurgical coal market dynamics flowing through our
realizations," said Andy Eidson,
Alpha's president and chief financial officer. "Led by tonnage
linked to the Australian indices, our export business remained
strong and average realizations on our met coal increased by more
than 30% to $241 per ton in the first
quarter, with average realizations on total export tons exceeding
$278 per ton."
The table below provides a breakdown of our Met segment coal
sold in the first quarter by pricing mechanism.
|
(in millions, except
per ton data)
|
|
Met Segment
Sales
|
Three months ended
Mar. 31, 2022
|
|
Tons
Sold
|
Coal
Revenues
|
Realization/ton(1)
|
% of Met Tons
Sold
|
|
Export - Other
Pricing Mechanisms
|
1.5
|
$359.2
|
$247.59
|
41%
|
|
Domestic
|
0.9
|
$156.6
|
$179.99
|
24%
|
|
Export -
Australian Indexed
|
1.2
|
$388.5
|
$315.06
|
35%
|
|
Total Met Coal
Revenues
|
3.6
|
$904.3
|
$254.45
|
100%
|
|
Thermal Coal
Revenues
|
0.2
|
$6.0
|
$26.57
|
|
|
Total Met Segment
Coal Revenues (excl. freight &
handling)(1)
|
3.8
|
$910.3
|
$240.82
|
|
__________________________________
|
|
|
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
|
|
Mar. 31,
2022
|
Dec. 31,
2021
|
|
Cost of Coal
Sales
|
$555.3
|
$497.4
|
|
Cost of Coal Sales
(excl. freight & handling/idle)(1)
|
$405.0
|
$364.4
|
|
|
|
(per ton)
|
|
Met
Segment(1)
|
$103.61
|
$92.46
|
|
All
Other(1)
|
$49.89
|
$60.77
|
__________________________________
|
|
|
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."
|
The company's Met segment cost of coal sales increased to an
average of $103.61 per ton in the
first quarter 2022 as compared to $92.46 per ton in the prior quarter. Cost of coal
sales for the All Other category decreased to $49.89 per ton in the first quarter 2022 from an
average cost of $60.77 per ton in the
fourth quarter 2021.
Liquidity and Capital Resources
"For nearly two years, we have stated our intention to
dramatically improve the company's financial position and our
balance sheet is reflecting those efforts," said Eidson. "With our
voluntary principal prepayments on the term loan since the
beginning of the year, our term loan balance is now under
$100 million. On a parallel path, we
are pleased to be returning value to shareholders through our newly
increased $600 million share
repurchase program and the establishment of a quarterly dividend.
We plan to continue these efforts while we also engage in further
discussions with the board about future uses of excess cash."
For the first quarter 2022, cash provided by operating
activities significantly increased to $336.1
million as compared to $104.3
million in the fourth quarter 2021. Cash provided by
operating activities includes discontinued operations. Capital
expenditures for the first quarter 2022 were $28.1 million compared to $22.9 million for the fourth quarter of
2021.
As of March 31, 2022, Alpha had
$159.5 million in unrestricted cash
and $137.5 million in restricted
cash, deposits and investments. Total long-term debt, including the
current portion of long-term debt as of March 31, 2022, was $251.4
million. At the end of the first quarter, the company had
total liquidity of $193.4 million,
including cash and cash equivalents of $159.4 million and $34.0
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 March 31,
2022, the company had no borrowings and $121.1 million in letters of credit outstanding
under the ABL.
Dividend Program
Alpha also announced today that its board of directors has
expanded the company's previously announced capital return program
to include a dividend policy. Under this policy the board intends
to pay aggregate cash dividends of $1.50 per share of common stock per year, with
$0.375 per share paid each quarter.
The board has declared the first quarterly dividend payment will
become payable on July 1, 2022 for
holders of record as of June 15,
2022. Future dividend payments will be targeted to be paid
in the first month of each calendar quarter. Any decision to pay
future cash dividends will, however, be made by the board and
depend on Alpha's future earnings and financial condition and other
relevant factors.
Share Repurchase Program
As announced last quarter, Alpha's board of directors authorized
a share repurchase program allowing for the expenditure of up to
$150 million for the repurchase of
the company's common stock. Alpha's board has increased this
authorization by $450 million,
bringing the share repurchase program to $600 million. As of May
3, the company has acquired 295,684 shares of common stock
at a cost of $39.4 million.
As previously announced, the timing and amount of share
repurchases will 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.
Long-Term Strategic Plan
"As we progress toward completion of our deleveraging goals, we
have also been refining the management team's long-term vision for
the company and how we can take steps today to bring that future to
fruition," said Eidson. "As we mentioned last quarter, senior
leaders across the company just completed an exercise to analyze
Alpha's next fifteen years. We evaluated our expected operational
portfolio, reserve life, coal qualities, and sales
opportunities."
"While our long-term plan was developed using specific
information that I can't detail here, such as economic projections
and the proprietary details of our operations, there are a few
high-level takeaways that I believe will provide helpful context to
investors, employees, and all Alpha stakeholders," Eidson
continued. "First, we believe our existing portfolio, together with
currently-held reserve bases, should allow the company to maintain
a consistent level of production, similar to Alpha's current
average production, across the next fifteen years without the need
for inorganic growth. Second, we expect to be able to gradually
improve the company's average coal quality to a higher rank while
maintaining the flexibility and optionality provided by a diverse
product mix. Third, we see strategic opportunities over the next
decade and a half to build on existing customer bases and develop
new relationships by expanding our sales and marketing efforts,
particularly in regions that are expected to exhibit the most
growth in demand for met coal; this work has already begun and will
continue to evolve as the macroeconomic circumstances shift.
Lastly, I believe Alpha is well positioned to continue as a leader
in the global metallurgical coal space for many years to come. That
final takeaway is my own opinion, but I believe it represents the
excitement and confidence of the team as we concluded this
exercise, especially as the important work to deleverage the
company should only strengthen Alpha's ability to both succeed and
be resilient, in the near and long term."
2022 Full-Year Guidance Adjustments
"I commend the operations teams on their continued diligence
amid these higher-cost market circumstances," said Jason Whitehead, executive vice president and
chief operating officer. "While the team has done an excellent job
in continually finding productivity enhancements to offset some of
the increased costs we have experienced, today we are raising cost
guidance for 2022. This change is due to elevated pricing dynamics
that have far exceeded the pricing projections used to calculate
our previous cost estimates for the year. I see this change as a
necessary response to market circumstances outside of our control.
As we have reiterated in prior quarters, we remain committed to
safely managing the costs within our direct control."
The company is increasing its cost of coal sales guidance due to
the elevated pricing environment in global coal markets.
Higher sales prices result in higher royalties and severance taxes,
which are part of our costs of coal sales. These circumstances,
alongside increased labor costs and persistent inflationary
pressure on certain materials, have contributed to the guidance
change announced today. Met segment cost of coal sales are now
expected to be between $101.00 per
ton and $107.00 per ton for the full
year, up from the prior guidance range of $88.00 per ton to $92.00 per ton. Cost of coal sales for the All
Other category are expected to remain unchanged in the range of
$58.00 per ton to $62.00 per ton. Additionally, due to the
company's aggressive debt reduction efforts, guidance for 2022 cash
interest expense is now expected to be between $18 million and $22
million, down from the previously provided range of
$40 million to $45 million.
As of April 20, 2022, Alpha has
committed and priced approximately 53% of its metallurgical coal
within the Met segment at an average price of $243.88 per ton and 96% of thermal coal in the
Met segment at an average expected price of $53.26 per ton. In the All Other category the
company is 100% committed and priced at an average price of
$57.70 per ton.
|
2022
Guidance
|
|
in millions of
tons
|
Low
|
High
|
|
Metallurgical
|
14.0
|
15.0
|
|
Thermal
|
0.8
|
1.2
|
|
Met
Segment
|
14.8
|
16.2
|
|
All Other
|
0.6
|
0.8
|
|
Total
Shipments
|
15.4
|
17.0
|
|
|
|
|
Committed/Priced1,2,3
|
Committed
|
Average
Price
|
|
Metallurgical -
Domestic
|
|
$189.22
|
|
Metallurgical -
Export
|
|
$297.01
|
|
Metallurgical
Total
|
53%
|
$243.88
|
|
Thermal
|
96%
|
$53.26
|
|
Met
Segment
|
56%
|
$222.63
|
|
All Other
|
100%
|
$57.70
|
|
|
|
|
Committed/Unpriced1,3
|
Committed
|
|
|
Metallurgical
Total
|
40%
|
|
|
Thermal
|
—%
|
|
|
Met
Segment
|
38%
|
|
|
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
|
$50
|
$54
|
|
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 April 20, 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.
|
Conference Call
The company plans to hold a conference call regarding its first
quarter 2022 results on May 5, 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
844-200-6205 (domestic toll-free) or 929-526-1599 (international)
approximately 15 minutes prior to start time. Please use the access
code 475225 to join 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," "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
March 31,
|
|
2022
|
|
2021
|
|
Revenues:
|
|
|
|
|
Coal
revenues
|
$
1,069,738
|
|
$
385,452
|
|
Other
revenues
|
2,226
|
|
801
|
|
Total
revenues
|
1,071,964
|
|
386,253
|
|
Costs and
expenses:
|
|
|
|
|
Cost of coal sales
(exclusive of items shown separately below)
|
555,317
|
|
347,428
|
|
Depreciation,
depletion and amortization
|
28,035
|
|
28,438
|
|
Accretion on asset
retirement obligations
|
5,954
|
|
6,648
|
|
Amortization of
acquired intangibles, net
|
5,748
|
|
3,869
|
|
Asset impairment and
restructuring
|
—
|
|
(561)
|
|
Selling, general and
administrative expenses (exclusive of depreciation, depletion and
amortization shown separately above)
|
15,086
|
|
14,982
|
|
Total other operating
loss (income):
|
|
|
|
|
Mark-to-market
adjustment for acquisition-related obligations
|
9,361
|
|
3,176
|
|
Other
income
|
(628)
|
|
(1,225)
|
|
Total costs and
expenses
|
618,873
|
|
402,755
|
|
Income (loss) from
operations
|
453,091
|
|
(16,502)
|
|
Other (expense)
income:
|
|
|
|
|
Interest
expense
|
(13,083)
|
|
(17,990)
|
|
Interest
income
|
184
|
|
164
|
|
Equity loss in
affiliates
|
(1,361)
|
|
(134)
|
|
Miscellaneous income,
net
|
1,797
|
|
1,766
|
|
Total other expense,
net
|
(12,463)
|
|
(16,194)
|
|
Income (loss) from
continuing operations before income taxes
|
440,628
|
|
(32,696)
|
|
Income tax (expense)
benefit
|
(39,624)
|
|
5
|
|
Net income (loss)
from continuing operations
|
401,004
|
|
(32,691)
|
|
Discontinued
operations:
|
|
|
|
|
Loss from discontinued
operations before income taxes
|
(146)
|
|
(237)
|
|
Income tax benefit
from discontinued operations
|
33
|
|
—
|
|
Loss from discontinued
operations
|
(113)
|
|
(237)
|
|
Net income
(loss)
|
$
400,891
|
|
$
(32,928)
|
|
|
|
|
|
Basic income (loss)
per common share:
|
|
|
|
|
Income (loss) from
continuing operations
|
$
21.59
|
|
$
(1.78)
|
|
Loss from discontinued
operations
|
(0.01)
|
|
(0.01)
|
|
Net income
(loss)
|
$
21.58
|
|
$
(1.79)
|
|
|
|
|
|
Diluted income (loss)
per common share:
|
|
|
|
|
Income (loss) from
continuing operations
|
$
20.52
|
|
$
(1.78)
|
|
Loss from discontinued
operations
|
—
|
|
(0.01)
|
|
Net income
(loss)
|
$
20.52
|
|
$
(1.79)
|
|
|
|
|
|
Weighted average
shares – basic
|
18,574,026
|
|
18,361,444
|
|
Weighted average
shares – diluted
|
19,540,642
|
|
18,361,444
|
|
ALPHA
METALLURGICAL RESOURCES, INC. AND SUBSIDIARIES
CONDENSED
CONSOLIDATED BALANCE SHEETS (Unaudited)
(Amounts in
thousands, except share and per share data)
|
|
March 31,
2022
|
|
December 31,
2021
|
|
Assets
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
159,455
|
|
$
81,211
|
|
Trade accounts
receivable, net of allowance for doubtful accounts of $519 and $393
as of March 31, 2022 and December 31, 2021,
respectively
|
636,152
|
|
489,241
|
|
Inventories,
net
|
161,753
|
|
129,382
|
|
Prepaid expenses and
other current assets
|
57,144
|
|
47,690
|
|
Current assets -
discontinued operations
|
69
|
|
462
|
|
Total current
assets
|
1,014,573
|
|
747,986
|
|
Property, plant, and
equipment, net of accumulated depreciation and amortization of
$462,920 and $443,856 as of March 31, 2022 and
December 31, 2021, respectively
|
369,449
|
|
362,218
|
|
Owned and leased
mineral rights, net of accumulated depletion and amortization of
$59,894 and $52,444 as of March 31, 2022 and December 31,
2021, respectively
|
436,852
|
|
444,302
|
|
Other acquired
intangibles, net of accumulated amortization of $39,968 and $34,221
as of March 31, 2022 and December 31, 2021,
respectively
|
68,450
|
|
74,197
|
|
Long-term restricted
cash
|
118,476
|
|
89,426
|
|
Other non-current
assets
|
96,673
|
|
131,057
|
|
Non-current assets -
discontinued operations
|
8,526
|
|
8,526
|
|
Total
assets
|
$
2,112,999
|
|
$
1,857,712
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Current portion of
long-term debt
|
$
2,434
|
|
$
2,989
|
|
Trade accounts
payable
|
109,413
|
|
90,090
|
|
Acquisition-related
obligations – current
|
21,281
|
|
22,405
|
|
Accrued expenses and
other current liabilities
|
223,222
|
|
174,607
|
|
Current liabilities -
discontinued operations
|
4,576
|
|
5,838
|
|
Total current
liabilities
|
360,926
|
|
295,929
|
|
Long-term
debt
|
248,936
|
|
445,562
|
|
Acquisition-related
obligations - long-term
|
28,199
|
|
19,000
|
|
Workers' compensation
and black lung obligations
|
204,470
|
|
208,193
|
|
Pension
obligations
|
155,895
|
|
159,930
|
|
Asset retirement
obligations
|
133,719
|
|
132,013
|
|
Deferred income
taxes
|
4,993
|
|
317
|
|
Other non-current
liabilities
|
22,624
|
|
26,176
|
|
Non-current
liabilities - discontinued operations
|
23,390
|
|
23,683
|
|
Total
liabilities
|
1,183,152
|
|
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, 21.0 million issued
and 18.5 million outstanding at March 31, 2022 and 20.8
million issued and 18.4 million outstanding at December 31,
2021
|
210
|
|
208
|
|
Additional paid-in
capital
|
788,281
|
|
784,743
|
|
Accumulated other
comprehensive loss
|
(57,728)
|
|
(58,503)
|
|
Treasury stock, at
cost: 2.5 million shares at March 31, 2022 and 2.4 million
shares at December 31, 2021
|
(130,068)
|
|
(107,800)
|
|
Retained earnings
(accumulated deficit)
|
329,152
|
|
(71,739)
|
|
Total stockholders'
equity
|
929,847
|
|
546,909
|
|
Total liabilities and
stockholders' equity
|
$
2,112,999
|
|
$
1,857,712
|
|
ALPHA
METALLURGICAL RESOURCES, INC. AND SUBSIDIARIES
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(Amounts in
thousands)
|
|
Three Months Ended
March 31,
|
|
2022
|
|
2021
|
|
Operating
activities:
|
|
|
|
|
Net income
(loss)
|
$
400,891
|
|
$
(32,928)
|
|
Adjustments to
reconcile net income (loss) to net cash provided by (used in)
operating activities:
|
|
|
|
|
Depreciation,
depletion and amortization
|
28,035
|
|
28,438
|
|
Amortization of
acquired intangibles, net
|
5,748
|
|
3,869
|
|
Accretion of
acquisition-related obligations discount
|
109
|
|
371
|
|
Amortization of debt
issuance costs and accretion of debt discount
|
3,679
|
|
3,316
|
|
Mark-to-market
adjustment for acquisition-related obligations
|
9,361
|
|
3,176
|
|
Gain on disposal of
assets
|
(636)
|
|
(1,258)
|
|
Asset impairment and
restructuring
|
—
|
|
(561)
|
|
Accretion on asset
retirement obligations
|
5,954
|
|
6,648
|
|
Employee benefit
plans, net
|
(174)
|
|
2,147
|
|
Deferred income
taxes
|
4,676
|
|
(6)
|
|
Stock-based
compensation
|
1,182
|
|
2,183
|
|
Equity loss in
affiliates
|
1,361
|
|
134
|
|
Other, net
|
135
|
|
826
|
|
Changes in operating
assets and liabilities
|
(124,196)
|
|
(35,470)
|
|
Net cash provided
by (used in) operating activities
|
336,125
|
|
(19,115)
|
|
Investing
activities:
|
|
|
|
|
Capital
expenditures
|
(28,146)
|
|
(20,395)
|
|
Proceeds on disposal
of assets
|
917
|
|
2,652
|
|
Purchases of
investment securities
|
(50)
|
|
(12,959)
|
|
Maturity of investment
securities
|
28,438
|
|
1,376
|
|
Capital contributions
to equity affiliates
|
(3,468)
|
|
(441)
|
|
Other, net
|
(1,243)
|
|
18
|
|
Net cash used in
investing activities
|
(3,552)
|
|
(29,749)
|
|
Financing
activities:
|
|
|
|
|
Principal repayments
of long-term debt
|
(200,461)
|
|
(5,223)
|
|
Principal repayments
of financing lease obligations
|
(543)
|
|
(501)
|
|
Common stock
repurchases and related expenses
|
(21,844)
|
|
(680)
|
|
Proceeds from exercise
of stock options
|
891
|
|
—
|
|
Proceeds from exercise
of warrants
|
2,257
|
|
—
|
|
Net cash used in
financing activities
|
(219,700)
|
|
(6,404)
|
|
Net increase
(decrease) in cash and cash equivalents and restricted
cash
|
112,873
|
|
(55,268)
|
|
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
|
$
295,487
|
|
$
189,303
|
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,
|
|
2022
|
|
2021
|
|
Cash and cash
equivalents
|
$
159,455
|
|
$
92,236
|
|
Short-term restricted
cash (included in prepaid expenses and other current
assets)
|
17,556
|
|
11,427
|
|
Long-term restricted
cash
|
118,476
|
|
85,640
|
|
Total cash and cash
equivalents and restricted cash shown in the Condensed Consolidated
Statements of Cash Flows
|
$
295,487
|
|
$
189,303
|
|
ALPHA
METALLURGICAL RESOURCES, INC. AND SUBSIDIARIES
ADJUSTED EBITDA
RECONCILIATION
(Amounts in
thousands)
|
|
|
Three Months
Ended
|
|
March 31,
2022
|
|
March 31,
2021
|
|
December 31,
2021
|
|
Net income (loss)
from continuing operations
|
$
401,004
|
|
$
(32,691)
|
|
$
254,517
|
|
Interest
expense
|
13,083
|
|
17,990
|
|
16,364
|
|
Interest
income
|
(184)
|
|
(164)
|
|
(12)
|
|
Income tax expense
(benefit)
|
39,624
|
|
(5)
|
|
3,398
|
|
Depreciation,
depletion and amortization
|
28,035
|
|
28,438
|
|
29,786
|
|
Non-cash stock
compensation expense
|
1,182
|
|
2,183
|
|
964
|
|
Mark-to-market
adjustment - acquisition-related obligations
|
9,361
|
|
3,176
|
|
1,516
|
|
Gain on settlement of
acquisition-related obligations
|
—
|
|
—
|
|
(1,125)
|
|
Accretion on asset
retirement obligations
|
5,954
|
|
6,648
|
|
6,550
|
|
Asset impairment and
restructuring
|
—
|
|
(561)
|
|
—
|
|
Amortization of
acquired intangibles, net
|
5,748
|
|
3,869
|
|
3,842
|
|
Adjusted
EBITDA
|
$
503,807
|
|
$
28,883
|
|
$
315,800
|
|
ALPHA
METALLURGICAL RESOURCES, INC. AND SUBSIDIARIES
RESULTS OF
OPERATIONS
|
|
|
|
Three Months Ended
March 31, 2022
|
|
(In thousands,
except for per ton data)
|
Met
|
|
All
Other
|
|
Consolidated
|
|
Coal
revenues
|
$
1,054,340
|
|
$
15,398
|
|
$
1,069,738
|
|
Less: Freight and
handling fulfillment revenues
|
(144,025)
|
|
(18)
|
|
(144,043)
|
|
Non-GAAP Coal
revenues
|
$
910,315
|
|
$
15,380
|
|
$
925,695
|
|
Tons sold
|
3,780
|
|
268
|
|
4,048
|
|
Non-GAAP Coal sales
realization per ton
|
$
240.82
|
|
$
57.39
|
|
$
228.68
|
|
|
|
|
|
|
|
Cost of coal sales
(exclusive of items shown separately below)
|
$
539,282
|
|
$
16,035
|
|
$
555,317
|
|
Depreciation,
depletion and amortization - production (1)
|
27,060
|
|
797
|
|
27,857
|
|
Accretion on asset
retirement obligations
|
3,398
|
|
2,556
|
|
5,954
|
|
Amortization of
acquired intangibles, net
|
4,796
|
|
952
|
|
5,748
|
|
Total Cost of coal
sales
|
$
574,536
|
|
$
20,340
|
|
$
594,876
|
|
Less: Freight and
handling costs
|
(144,025)
|
|
(18)
|
|
(144,043)
|
|
Less:
Depreciation, depletion and amortization - production
(1)
|
(27,060)
|
|
(797)
|
|
(27,857)
|
|
Less: Accretion on
asset retirement obligations
|
(3,398)
|
|
(2,556)
|
|
(5,954)
|
|
Less: Amortization of
acquired intangibles, net
|
(4,796)
|
|
(952)
|
|
(5,748)
|
|
Less: Idled and
closed mine costs
|
(3,604)
|
|
(2,646)
|
|
(6,250)
|
|
Non-GAAP Cost of coal
sales
|
$
391,653
|
|
$
13,371
|
|
$
405,024
|
|
Tons sold
|
3,780
|
|
268
|
|
4,048
|
|
Non-GAAP Cost of coal
sales per ton
|
$
103.61
|
|
$
49.89
|
|
$
100.06
|
|
|
|
(1)
|
Depreciation,
depletion and amortization - production excludes the depreciation,
depletion and amortization related to selling, general and
administrative functions.
|
|
Three Months Ended
March 31, 2022
|
|
(In thousands,
except for per ton data)
|
Met
|
|
All
Other
|
|
Consolidated
|
|
Coal
revenues
|
$
1,054,340
|
|
$
15,398
|
|
$
1,069,738
|
|
Less: Total Cost of
coal sales (per table above)
|
(574,536)
|
|
(20,340)
|
|
(594,876)
|
|
GAAP Coal
margin
|
$
479,804
|
|
$
(4,942)
|
|
$
474,862
|
|
Tons sold
|
3,780
|
|
268
|
|
4,048
|
|
GAAP Coal margin per
ton
|
$
126.93
|
|
$
(18.44)
|
|
$
117.31
|
|
|
|
|
|
|
|
GAAP Coal
margin
|
$
479,804
|
|
$
(4,942)
|
|
$
474,862
|
|
Add: Depreciation,
depletion and amortization - production (1)
|
27,060
|
|
797
|
|
27,857
|
|
Add: Accretion on
asset retirement obligations
|
3,398
|
|
2,556
|
|
5,954
|
|
Add: Amortization of
acquired intangibles, net
|
4,796
|
|
952
|
|
5,748
|
|
Add: Idled and closed
mine costs
|
3,604
|
|
2,646
|
|
6,250
|
|
Non-GAAP Coal
margin
|
$
518,662
|
|
$
2,009
|
|
$
520,671
|
|
Tons sold
|
3,780
|
|
268
|
|
4,048
|
|
Non-GAAP Coal margin
per ton
|
$
137.21
|
|
$
7.50
|
|
$
128.62
|
|
|
|
(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: 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
December 31, 2021
|
|
(In thousands,
except for per ton data)
|
Met
|
|
All
Other
|
|
Consolidated
|
|
Coal
revenues
|
$
811,528
|
|
$
15,030
|
|
$
826,558
|
|
Less: Freight and
handling fulfillment revenues
|
(127,925)
|
|
(16)
|
|
(127,941)
|
|
Non-GAAP Coal
revenues
|
$
683,603
|
|
$
15,014
|
|
$
698,617
|
|
Tons sold
|
3,784
|
|
240
|
|
4,024
|
|
Non-GAAP Coal sales
realization per ton
|
$
180.66
|
|
$
62.56
|
|
$
173.61
|
|
|
|
|
|
|
|
Cost of coal sales
(exclusive of items shown separately below)
|
$
481,317
|
|
$
16,065
|
|
$
497,382
|
|
Depreciation,
depletion and amortization - production (1)
|
24,560
|
|
5,041
|
|
29,601
|
|
Accretion on asset
retirement obligations
|
3,401
|
|
3,149
|
|
6,550
|
|
Amortization of
acquired intangibles, net
|
3,922
|
|
(80)
|
|
3,842
|
|
Total Cost of coal
sales
|
$
513,200
|
|
$
24,175
|
|
$
537,375
|
|
Less: Freight and
handling costs
|
(127,925)
|
|
(16)
|
|
(127,941)
|
|
Less:
Depreciation, depletion and amortization - production
(1)
|
(24,560)
|
|
(5,041)
|
|
(29,601)
|
|
Less: Accretion on
asset retirement obligations
|
(3,401)
|
|
(3,149)
|
|
(6,550)
|
|
Less: Amortization of
acquired intangibles, net
|
(3,922)
|
|
80
|
|
(3,842)
|
|
Less: Idled and
closed mine costs
|
(3,533)
|
|
(1,465)
|
|
(4,998)
|
|
Non-GAAP Cost of coal
sales
|
$
349,859
|
|
$
14,584
|
|
$
364,443
|
|
Tons sold
|
3,784
|
|
240
|
|
4,024
|
|
Non-GAAP Cost of coal
sales per ton
|
$
92.46
|
|
$
60.77
|
|
$
90.57
|
|
|
|
(1)
|
Depreciation,
depletion and amortization - production excludes the depreciation,
depletion and amortization related to selling, general and
administrative functions.
|
|
Three Months Ended
December 31, 2021
|
|
(In thousands,
except for per ton data)
|
Met
|
|
All
Other
|
|
Consolidated
|
|
Coal
revenues
|
$
811,528
|
|
$
15,030
|
|
$
826,558
|
|
Less: Total Cost of
coal sales (per table above)
|
(513,200)
|
|
(24,175)
|
|
(537,375)
|
|
GAAP Coal
margin
|
$
298,328
|
|
$
(9,145)
|
|
$
289,183
|
|
Tons sold
|
3,784
|
|
240
|
|
4,024
|
|
GAAP Coal margin per
ton
|
$
78.84
|
|
$
(38.10)
|
|
$
71.86
|
|
|
|
|
|
|
|
GAAP Coal
margin
|
$
298,328
|
|
$
(9,145)
|
|
$
289,183
|
|
Add: Depreciation,
depletion and amortization - production (1)
|
24,560
|
|
5,041
|
|
29,601
|
|
Add: Accretion on
asset retirement obligations
|
3,401
|
|
3,149
|
|
6,550
|
|
Add: Amortization of
acquired intangibles, net
|
3,922
|
|
(80)
|
|
3,842
|
|
Add: Idled and closed
mine costs
|
3,533
|
|
1,465
|
|
4,998
|
|
Non-GAAP Coal
margin
|
$
333,744
|
|
$
430
|
|
$
334,174
|
|
Tons sold
|
3,784
|
|
240
|
|
4,024
|
|
Non-GAAP Coal margin
per ton
|
$
88.20
|
|
$
1.79
|
|
$
83.05
|
|
|
|
(1)
|
Depreciation,
depletion and amortization - production excludes the depreciation,
depletion and amortization related to selling, general and
administrative functions.
|
|
Three Months Ended
March 31, 2022
|
|
(In thousands,
except for per ton data)
|
Met
|
|
All
Other
|
|
Consolidated
|
|
Non-GAAP Cost of coal
sales
|
$
391,653
|
|
$
13,371
|
|
$
405,024
|
|
Less: cost of
purchased coal sold
|
(27,842)
|
|
(37)
|
|
(27,879)
|
|
Adjusted cost of
produced coal sold
|
$
363,811
|
|
$
13,334
|
|
$
377,145
|
|
Produced tons
sold
|
3,653
|
|
267
|
|
3,920
|
|
Adjusted cost of
produced coal sold per ton (1)
|
$
99.59
|
|
$
49.94
|
|
$
96.21
|
|
|
(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, 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
December 31, 2021
|
|
(In thousands,
except for per ton data)
|
Met
|
|
All
Other
|
|
Consolidated
|
|
Non-GAAP Cost of coal
sales
|
$
349,859
|
|
$
14,584
|
|
$
364,443
|
|
Less: cost of
purchased coal sold
|
(22,798)
|
|
(660)
|
|
(23,458)
|
|
Adjusted cost of
produced coal sold
|
$
327,061
|
|
$
13,924
|
|
$
340,985
|
|
Produced tons
sold
|
3,610
|
|
235
|
|
3,845
|
|
Adjusted cost of
produced coal sold per ton (1)
|
$
90.60
|
|
$
59.25
|
|
$
88.68
|
|
|
|
(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, 2022
|
|
(In thousands,
except for per ton data)
|
Tons
Sold
|
|
Coal
Revenues
|
|
Non-GAAP
Coal sales
realization
per ton
|
|
% of Met Tons
Sold
|
|
Export - other
pricing mechanisms
|
1,451
|
|
$
359,249
|
|
$
247.59
|
|
41%
|
|
Domestic
|
870
|
|
156,594
|
|
$
179.99
|
|
24%
|
|
Export - Australian
indexed
|
1,233
|
|
388,467
|
|
$
315.06
|
|
35%
|
|
Total Met segment -
met coal
|
3,554
|
|
$
904,310
|
|
$
254.45
|
|
100%
|
|
Met segment - thermal
coal
|
226
|
|
6,005
|
|
$
26.57
|
|
|
|
Total Met segment
Coal revenues
|
3,780
|
|
910,315
|
|
$
240.82
|
|
|
|
All Other Coal
revenues
|
268
|
|
15,380
|
|
$
57.39
|
|
|
|
Non-GAAP Coal
revenues
|
4,048
|
|
$
925,695
|
|
$
228.68
|
|
|
|
Add: Freight and
handling fulfillment revenues
|
—
|
|
144,043
|
|
|
|
|
|
Coal
revenues
|
4,048
|
|
$
1,069,738
|
|
|
|
|
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SOURCE Alpha Metallurgical Resources, Inc.