• 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.

(PRNewsfoto/Alpha Metallurgical Resources, Inc.)


(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.

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