• Posts net income from continuing operations of $251.8 million, or $14.21 per diluted share, for the quarter
  • Reports third quarter Adjusted EBITDA of $294.9 million
  • Generates quarterly operating cash flow of $497.0 million
  • Announces 4.5 million tons of 2023 domestic sales commitments at an average price of $192.27 per ton
  • Announces cumulative $452 million in buybacks through share repurchase program as of October 31, 2022
  • Increases share buyback authorization to $1 billion from prior level of $600 million
  • Announces one-time, special dividend of $5.00 per share
  • Increases quarterly dividend amount to 41.8 cents per share

BRISTOL, Tenn., Nov. 7, 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 third quarter ending September 30, 2022.

(PRNewsfoto/Alpha Metallurgical Resources, Inc.)


(millions, except per share)


Three months ended


Sept. 30, 2022

June 30, 2022

Sept. 30, 2021

Net income(1)

$251.8

$575.4

$83.7

Net income(1) per diluted share

$14.21

$30.03

$4.43

Adjusted EBITDA(2)

$294.9

$694.5

$148.2

Operating cash flow(3)

$497.0

$465.9

$96.0

Capital expenditures

($33.3)

($41.9)

($22.3)

Tons of coal sold

4.1

4.3

4.7

__________________________________

1.

From continuing operations.

2.

These are non-GAAP financial measures. A reconciliation of Net Income to Adjusted EBITDA is included in tables accompanying the financial schedules.

3.

Includes discontinued operations.

"Alpha's third quarter results represent another solid performance from our team," said David Stetson, Alpha's chair and chief executive officer. "Evident within this quarter's numbers is the natural impact of the coal indices' drop from their early-2022 historic highs. Even still, indices remain at levels that are considered very strong from a historical average perspective, and Alpha's nearly $300 million in Adjusted EBITDA for the quarter is likewise a strong showing for our company."

Stetson continued: "To further enhance our already-robust capital return efforts, I am pleased to announce that Alpha's board has approved a 400-million-dollar increase to the existing share repurchase authorization, bringing the total authorization to an impressive $1 billion. In addition, the board has increased the fixed dividend to 41.8 cents per share and approved a one-time, special dividend of five dollars per share in recognition of the extraordinarily positive performance of the Alpha team this year. We remain committed, as always, to prudently returning capital to shareholders."

Financial Performance

Alpha reported net income from continuing operations of $251.8 million, or $14.21 per diluted share, for the third quarter 2022. In the second quarter of 2022, the company had net income from continuing operations of $575.4 million, or $30.03 per diluted share.

For the third quarter, total Adjusted EBITDA was $294.9 million, compared to $694.5 million in the second quarter 2022. 

Coal Revenues


(millions)


Three months ended


Sept. 30, 2022

June 30, 2022

Met Segment

$840.6

$1,318.7

All Other

$27.2

$15.6




Met Segment (excl. freight & handling)(1)

$718.1

$1,162.1

All Other (excl. freight & handling)(1)

$27.2

$15.6




Tons Sold

(millions)


Three months ended


Sept. 30, 2022

June 30, 2022

Met Segment

3.9

4.1

All Other

0.2

0.3

__________________________________

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


Sept. 30, 2022

June 30, 2022

Met Segment

$184.31

$286.95

All Other

$109.27

$61.41

__________________________________

1.

Represents Non-GAAP coal sales realization which is defined and reconciled under "Non-GAAP Financial Measures" and "Results of Operations."


Third quarter net realized pricing for the Met segment was $184.31 per ton and net realization in the All Other category was $109.27. Met segment realizations for the third quarter, as compared to first half realizations, reflect the downward movement of coal indices off their historic highs in early 2022.

The table below provides a breakdown of our Met segment coal sold in the third quarter by pricing mechanism.


(in millions, except per ton data)

Met Segment Sales

Three months ended Sept. 30, 2022


Tons Sold

Coal Revenues

Realization/ton(1)

% of Met Tons Sold

Export - Other Pricing Mechanisms

1.4

$299.2

$208.81

41 %

Domestic

0.9

$189.2

$200.24

27 %

Export - Australian Indexed

1.1

$184.8

$161.58

32 %

Total Met Coal Revenues

3.5

$673.3

$191.17

100 %

Thermal Coal Revenues

0.4

$44.8

$119.69


Total Met Segment Coal Revenues (excl. freight & handling)(1)

3.9

$718.1

$184.31


__________________________________

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


Sept. 30, 2022

June 30, 2022

Cost of Coal Sales

$555.5

$625.9

Cost of Coal Sales (excl. freight & handling/idle)(1)

$425.4

$463.7


(per ton)

Met Segment(1)

$104.86

$111.36

All Other(1)

$67.48

$49.90

__________________________________

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."

Alpha's third quarter Met segment cost of coal sales decreased to an average of $104.86 per ton, with reduced sales-related costs from royalties and severance taxes accounting for the drop from the second quarter level of $111.36. Cost of coal sales for the All Other category increased to $67.48 per ton in the third quarter 2022 against an average cost of $49.90 per ton in the second quarter 2022. The higher costs in third quarter are attributable to higher sales-related costs and the impacts of late-stage mining at our Slabcamp mine.

Liquidity and Capital Resources

Cash provided by operating activities in the third quarter increased to $497.0 million as compared to $465.9 million in the second quarter 2022. Cash provided by operating activities includes discontinued operations. Capital expenditures for the third quarter 2022 were $33.3 million compared to $41.9 million for the second quarter of 2022. 

As of September 30, 2022, Alpha had $404.4 million in unrestricted cash and $150.8 million in restricted cash, deposits and investments. Total long-term debt, including the current portion of long-term debt as of September 30, 2022, was $4.7 million. At the end of the third quarter, the company had total liquidity of $495.5 million, including cash and cash equivalents of $404.4 million and $91.1 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 September 30, 2022, the company had no borrowings and $63.9 million in letters of credit outstanding under the ABL.

2023 Domestic Sales Commitments

On September 13, 2022, Alpha announced that the company has committed approximately 4.5 million tons of metallurgical coal to domestic customers for shipment in the calendar year 2023. Those 4.5 million tons are committed at an average price of $192.27 per ton.

"As we advance through our budgeting process to finalize our expectations for the coming year, we are pleased to have a firm foundation of 4.5 million tons of domestically-committed coal on which we can continue to build," said Andy Eidson, Alpha's president. "Our sales team continues to do an excellent job of working with new and longstanding customers, and we are taking a close look at the full scope of international opportunities available to Alpha in 2023. Together in coordination with our operations teams, we will round out our guidance projections and plans for 2023. We are optimistic about Alpha's outlook for next year and we will provide more detail around our 2023 expectations in the coming weeks."

Dividend Program

On November 4, 2022, Alpha's board of directors declared a quarterly cash dividend payment of $0.418 per share, increased from the prior level of $0.392 per share, which will become payable on January 3, 2023 for holders of record as of December 15, 2022. Alpha's board also declared a one-time, special dividend of $5.00 per share, also payable on January 3, 2023 for holders of record as of December 15, 2022.

Any decision to pay future cash dividends will be made by the board and depend on Alpha's future earnings and financial condition and other relevant factors.

Share Repurchase Program

As previously announced, Alpha's board of directors authorized a share repurchase program allowing for the expenditure of up to $600 million for the repurchase of the company's common stock. On November 4, Alpha's board increased this authorization by $400 million, bringing the total authorization to $1 billion. As of October 31, 2022, the company has acquired 3.1 million shares of common stock at a cost of $452 million, which has reduced the outstanding share count by roughly 14 percent from the time the program began. The number of common stock shares outstanding as of October 31, 2022 is 15,943,649.

The timing and amount of share repurchases will continue to 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.

2022 Guidance

As of October 28, 2022, Alpha has committed and priced approximately 87% of its metallurgical coal within the Met segment at an average price of $243.30 per ton and 100% of thermal coal in the Met segment at an average expected price of $97.43 per ton. In the All Other category the company is 100% committed and priced at an average price of $77.69 per ton.


2022 Guidance

in millions of tons

Low

High

Metallurgical

14.0

15.0

Thermal

1.0

1.4

Met Segment

15.0

16.4

All Other

0.6

0.8

Total Shipments

15.6

17.2




Committed/Priced1,2,3

Committed

Average Price

Metallurgical - Domestic


$192.03

Metallurgical - Export


$265.02

Metallurgical Total

87 %

$243.30

Thermal

100 %

$97.43

Met Segment

89 %

$228.76

All Other

100 %

$77.69




Committed/Unpriced1,3

Committed


Metallurgical Total

13 %


Thermal

— %


Met Segment

11 %


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

$55

$59

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 October 28, 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 third quarter 2022 results on November 7, 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 877-407-0832 (domestic toll-free) or 201-689-8433 (international) approximately 15 minutes prior to start time.

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 & Media Contact: Emily O'Quinn
InvestorRelations@AlphaMetResources.com 
CorporateCommunications@AlphaMetResources.com 
(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 September 30,


Nine Months Ended September 30,


2022


2021


2022


2021

Revenues:








Coal revenues

$              867,849


$              647,129


$          3,271,845


$          1,426,039

Other revenues

1,919


1,712


6,299


4,330

Total revenues

869,768


648,841


3,278,144


1,430,369

Costs and expenses:








Cost of coal sales (exclusive of items
shown separately below)

555,502


488,169


1,736,711


1,182,360

Depreciation, depletion and amortization

27,925


24,519


83,690


80,261

Accretion on asset retirement obligations

5,921


6,674


17,822


19,970

Amortization of acquired intangibles, net

4,543


2,980


16,038


9,402

Asset impairment and restructuring




(561)

Selling, general and administrative
expenses (exclusive of depreciation,
depletion and amortization shown
separately above)

15,095


15,264


48,339


44,891

Total other operating loss (income):








Mark-to-market adjustment for
acquisition-related obligations

(2,954)


11,676


10,615


18,009

Other expense (income)

2,713


(457)


569


(5,290)

Total costs and expenses

608,745


548,825


1,913,784


1,349,042

Income from operations

261,023


100,016


1,364,360


81,327

Other (expense) income:








Interest expense

(1,695)


(17,338)


(19,996)


(53,290)

Interest income

1,064


54


1,412


322

Equity loss in affiliates

(4,821)


(643)


(8,318)


(1,161)

Miscellaneous income, net

1,702


1,812


4,884


5,425

Total other expense, net

(3,750)


(16,115)


(22,018)


(48,704)

Income from continuing operations before
income taxes

257,273


83,901


1,342,342


32,623

Income tax expense

(5,437)


(208)


(114,073)


(211)

Net income from continuing operations

251,836


83,693


1,228,269


32,412

Discontinued operations:








Income (loss) from discontinued operations
before income taxes

1,273


(429)


(525)


(1,067)

Income tax (expense) benefit from
discontinued operations

(292)



121


Income (loss) from discontinued operations

981


(429)


(404)


(1,067)

Net income

$              252,817


$                83,264


$          1,227,865


$                31,345









Basic income per common share:








Income from continuing operations

$                  14.71


$                    4.54


$                  68.16


$                    1.76

Income (loss) from discontinued operations

0.06


(0.03)


(0.02)


(0.06)

Net income

$                  14.77


$                    4.51


$                  68.14


$                    1.70









Diluted income per common share:








Income from continuing operations

$                  14.21


$                    4.43


$                  65.33


$                    1.73

Income (loss) from discontinued operations

0.06


(0.03)


(0.02)


(0.06)

Net income

$                  14.27


$                    4.40


$                  65.31


$                    1.67









Weighted average shares – basic

17,119,328


18,445,709


18,019,161


18,426,639

Weighted average shares – diluted

17,718,517


18,913,352


18,800,674


18,783,643

 

ALPHA METALLURGICAL RESOURCES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)

(Amounts in thousands, except share and per share data)



September 30, 2022


December 31, 2021

Assets




Current assets:




Cash and cash equivalents

$             404,430


$               81,211

Trade accounts receivable, net of allowance for doubtful accounts of $375 and $393 as of
September 30, 2022 and December 31, 2021, respectively

487,352


489,241

Inventories, net

178,559


129,382

Prepaid expenses and other current assets

76,999


47,690

Current assets - discontinued operations

57


462

Total current assets

1,147,397


747,986

Property, plant, and equipment, net of accumulated depreciation and amortization of
$497,149 and $443,856 as of September 30, 2022 and December 31, 2021, respectively

404,171


362,218

Owned and leased mineral rights, net of accumulated depletion and amortization of
$73,446 and $52,444 as of September 30, 2022 and December 31, 2021, respectively

423,763


444,302

Other acquired intangibles, net of accumulated amortization of $50,259 and $34,221 as
of September 30, 2022 and December 31, 2021, respectively

58,561


74,197

Long-term restricted investments

92,384


28,443

Long-term restricted cash

31,724


89,426

Other non-current assets

93,332


102,614

Non-current assets - discontinued operations

8,521


8,526

Total assets

$          2,259,853


$          1,857,712

Liabilities and Stockholders' Equity




Current liabilities:




Current portion of long-term debt

$                  1,711


$                  2,989

Trade accounts payable

101,584


90,090

Acquisition-related obligations – current

30,131


22,405

Accrued expenses and other current liabilities

203,902


174,607

Current liabilities - discontinued operations

4,014


5,838

Total current liabilities

341,342


295,929

Long-term debt

2,987


445,562

Acquisition-related obligations - long-term


19,000

Workers' compensation and black lung obligations

200,827


208,193

Pension obligations

152,184


159,930

Asset retirement obligations

135,082


132,013

Deferred income taxes

11,723


317

Other non-current liabilities

20,794


26,176

Non-current liabilities - discontinued operations

23,245


23,683

Total liabilities

888,184


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, 21.6 million issued and
16.3 million outstanding at September 30, 2022 and 20.8 million issued and 18.4 million
outstanding at December 31, 2021

217


208

Additional paid-in capital

811,012


784,743

Accumulated other comprehensive loss

(60,886)


(58,503)

Treasury stock, at cost: 5.3 million shares at September 30, 2022 and 2.4 million shares
at December 31, 2021

(521,094)


(107,800)

Retained earnings (accumulated deficit)

1,142,420


(71,739)

Total stockholders' equity

1,371,669


546,909

Total liabilities and stockholders' equity

$          2,259,853


$          1,857,712

 

ALPHA METALLURGICAL RESOURCES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

(Amounts in thousands)



Nine Months Ended September 30,


2022


2021

Operating activities:




Net income

$             1,227,865


$                  31,345

Adjustments to reconcile net income to net cash provided by operating activities:




Depreciation, depletion and amortization

83,690


80,261

Amortization of acquired intangibles, net

16,038


9,402

Amortization of debt issuance costs and accretion of debt discount

7,757


9,351

Mark-to-market adjustment for acquisition-related obligations

10,615


18,009

Gain on disposal of assets

(2,607)


(5,342)

Accretion on asset retirement obligations

17,822


19,970

Employee benefit plans, net

1,312


6,685

Deferred income taxes

11,406


(1)

Stock-based compensation

4,103


4,351

Equity loss in affiliates

8,318


1,161

Other, net

432


(3,938)

Changes in operating assets and liabilities

(87,714)


(100,681)

Net cash provided by operating activities

1,299,037


70,573

Investing activities:




Capital expenditures

(103,351)


(60,386)

Proceeds on disposal of assets

3,010


7,471

Purchases of investment securities

(181,539)


(15,474)

Maturity of investment securities

117,380


10,508

Capital contributions to equity affiliates

(13,832)


(4,473)

Other, net

(4,232)


52

Net cash used in investing activities

(182,564)


(62,302)

Financing activities:




Repurchases of long-term debt


(18,415)

Principal repayments of long-term debt

(450,484)


(61,869)

Dividend and dividend equivalents paid

(6,807)


Common stock repurchases and related expenses

(391,166)


(786)

Proceeds from exercise of warrants

4,771


Other, net

(447)


(1,846)

Net cash used in financing activities

(844,133)


(82,916)

Net increase (decrease) in cash and cash equivalents and restricted cash

272,340


(74,645)

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

$                454,954


$                169,926


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 September 30,


2022


2021

Cash and cash equivalents

$                404,430


$                  78,283

Short-term restricted cash (included in Prepaid expenses and other current assets)

18,800


7,642

Long-term restricted cash

31,724


84,001

Total cash and cash equivalents and restricted cash shown in the Condensed Consolidated Statements of Cash Flows

$                454,954


$                169,926

 

ALPHA METALLURGICAL RESOURCES, INC. AND SUBSIDIARIES

ADJUSTED EBITDA RECONCILIATION

(Amounts in thousands)



Three Months Ended


Nine Months Ended September 30,


June 30, 2022


September 30, 2022


September 30, 2021


2022


2021

Net income from continuing
operations

$       575,429


$             251,836


$               83,693


$     1,228,269


$          32,412

Interest expense

5,218


1,695


17,338


19,996


53,290

Interest income

(164)


(1,064)


(54)


(1,412)


(322)

Income tax expense

69,012


5,437


208


114,073


211

Depreciation, depletion and
amortization

27,730


27,925


24,519


83,690


80,261

Non-cash stock compensation
expense

1,401


1,520


1,189


4,103


4,351

Mark-to-market adjustment -
acquisition-related obligations

4,208


(2,954)


11,676


10,615


18,009

Accretion on asset retirement
obligations

5,947


5,921


6,674


17,822


19,970

Asset impairment and restructuring





(561)

Amortization of acquired intangibles,
net

5,747


4,543


2,980


16,038


9,402

Adjusted EBITDA

$       694,528


$             294,859


$             148,223


$     1,493,194


$        217,023

 

ALPHA METALLURGICAL RESOURCES, INC. AND SUBSIDIARIES

RESULTS OF OPERATIONS



Three Months Ended June 30, 2022

(In thousands, except for per ton data)

Met


All Other


Consolidated

Coal revenues

$      1,318,661


$           15,597


$      1,334,258

Less: Freight and handling fulfillment revenues

(156,522)



(156,522)

Non-GAAP Coal revenues

$      1,162,139


$           15,597


$      1,177,736

Tons sold

4,050


254


4,304

Non-GAAP Coal sales realization per ton

$           286.95


$              61.41


$           273.64







Cost of coal sales (exclusive of items shown separately below)

$         610,224


$           15,668


$         625,892

Depreciation, depletion and amortization - production (1)

27,202


250


27,452

Accretion on asset retirement obligations

3,390


2,557


5,947

Amortization of acquired intangibles, net

4,795


952


5,747

Total Cost of coal sales

$         645,611


$           19,427


$         665,038

Less: Freight and handling costs

(156,522)



(156,522)

Less:  Depreciation, depletion and amortization - production (1)

(27,202)


(250)


(27,452)

Less: Accretion on asset retirement obligations

(3,390)


(2,557)


(5,947)

Less: Amortization of acquired intangibles, net

(4,795)


(952)


(5,747)

Less: Idled and closed mine costs

(2,708)


(2,993)


(5,701)

Non-GAAP Cost of coal sales

$         450,994


$           12,675


$         463,669

Tons sold

4,050


254


4,304

Non-GAAP Cost of coal sales per ton

$           111.36


$              49.90


$           107.73



(1)

Depreciation, depletion and amortization - production excludes the depreciation, depletion and amortization related to selling, general and administrative functions.

 


Three Months Ended June 30, 2022

(In thousands, except for per ton data)

Met


All Other


Consolidated

Coal revenues

$      1,318,661


$           15,597


$      1,334,258

Less: Total Cost of coal sales (per table above)

(645,611)


(19,427)


(665,038)

GAAP Coal margin

$         673,050


$            (3,830)


$         669,220

Tons sold

4,050


254


4,304

GAAP Coal margin per ton

$           166.19


$            (15.08)


$           155.49







GAAP Coal margin

$         673,050


$            (3,830)


$         669,220

Add: Depreciation, depletion and amortization - production (1)

27,202


250


27,452

Add: Accretion on asset retirement obligations

3,390


2,557


5,947

Add: Amortization of acquired intangibles, net

4,795


952


5,747

Add: Idled and closed mine costs

2,708


2,993


5,701

Non-GAAP Coal margin

$         711,145


$              2,922


$         714,067

Tons sold

4,050


254


4,304

Non-GAAP Coal margin per ton

$           175.59


$              11.50


$           165.91



(1)

Depreciation, depletion and amortization - production excludes the depreciation, depletion and amortization related to selling, general and administrative functions.

 


Three Months Ended September 30, 2022

(In thousands, except for per ton data)

Met


All Other


Consolidated

Coal revenues

$         840,638


$           27,211


$         867,849

Less: Freight and handling fulfillment revenues

(122,585)


(3)


(122,588)

Non-GAAP Coal revenues

$         718,053


$           27,208


$         745,261

Tons sold

3,896


249


4,145

Non-GAAP Coal sales realization per ton

$           184.31


$           109.27


$           179.80







Cost of coal sales (exclusive of items shown separately below)

$         534,718


$           20,784


$         555,502

Depreciation, depletion and amortization - production (1)

26,747


906


27,653

Accretion on asset retirement obligations

3,390


2,531


5,921

Amortization of acquired intangibles, net

3,591


952


4,543

Total Cost of coal sales

$         568,446


$           25,173


$         593,619

Less: Freight and handling costs

(122,585)


(3)


(122,588)

Less:  Depreciation, depletion and amortization - production (1)

(26,747)


(906)


(27,653)

Less: Accretion on asset retirement obligations

(3,390)


(2,531)


(5,921)

Less: Amortization of acquired intangibles, net

(3,591)


(952)


(4,543)

Less: Idled and closed mine costs

(3,580)


(3,978)


(7,558)

Non-GAAP Cost of coal sales

$         408,553


$           16,803


$         425,356

Tons sold

3,896


249


4,145

Non-GAAP Cost of coal sales per ton

$           104.86


$              67.48


$           102.62



(1)

Depreciation, depletion and amortization - production excludes the depreciation, depletion and amortization related to selling, general and administrative functions.

 


Three Months Ended September 30, 2022

(In thousands, except for per ton data)

Met


All Other


Consolidated

Coal revenues

$         840,638


$           27,211


$         867,849

Less: Total Cost of coal sales (per table above)

(568,446)


(25,173)


(593,619)

GAAP Coal margin

$         272,192


$              2,038


$         274,230

Tons sold

3,896


249


4,145

GAAP Coal margin per ton

$              69.86


$                8.18


$              66.16







GAAP Coal margin

$         272,192


$              2,038


$         274,230

Add: Depreciation, depletion and amortization - production (1)

26,747


906


27,653

Add: Accretion on asset retirement obligations

3,390


2,531


5,921

Add: Amortization of acquired intangibles, net

3,591


952


4,543

Add: Idled and closed mine costs

3,580


3,978


7,558

Non-GAAP Coal margin

$         309,500


$           10,405


$         319,905

Tons sold

3,896


249


4,145

Non-GAAP Coal margin per ton

$              79.44


$              41.79


$              77.18



(1)

Depreciation, depletion and amortization - production excludes the depreciation, depletion and amortization related to selling, general and administrative functions.

 


Three Months Ended September 30, 2021

(In thousands, except for per ton data)

Met


All Other


Consolidated

Coal revenues

$         625,387


$           21,742


$         647,129

Less: Freight and handling fulfillment revenues

(128,192)


(18)


(128,210)

Non-GAAP Coal revenues

$         497,195


$           21,724


$         518,919

Tons sold

4,380


348


4,728

Non-GAAP Coal sales realization per ton

$           113.51


$              62.43


$           109.75







Cost of coal sales (exclusive of items shown separately below)

$         468,706


$           19,463


$         488,169

Depreciation, depletion and amortization - production (1)

23,181


1,160


24,341

Accretion on asset retirement obligations

3,408


3,266


6,674

Amortization of acquired intangibles, net

3,063


(83)


2,980

Total Cost of coal sales

$         498,358


$           23,806


$         522,164

Less: Freight and handling costs

(128,192)


(18)


(128,210)

Less:  Depreciation, depletion and amortization - production (1)

(23,181)


(1,160)


(24,341)

Less: Accretion on asset retirement obligations

(3,408)


(3,266)


(6,674)

Less: Amortization of acquired intangibles, net

(3,063)


83


(2,980)

Less: Idled and closed mine costs

(4,932)


(2,927)


(7,859)

Non-GAAP Cost of coal sales

$         335,582


$           16,518


$         352,100

Tons sold

4,380


348


4,728

Non-GAAP Cost of coal sales per ton

$              76.62


$              47.47


$              74.47



(1)

Depreciation, depletion and amortization - production excludes the depreciation, depletion and amortization related to selling, general and administrative functions.

 


Three Months Ended September 30, 2021

(In thousands, except for per ton data)

Met


All Other


Consolidated

Coal revenues

$         625,387


$           21,742


$         647,129

Less: Total Cost of coal sales (per table above)

(498,358)


(23,806)


(522,164)

GAAP Coal margin

$         127,029


$            (2,064)


$         124,965

Tons sold

4,380


348


4,728

GAAP Coal margin per ton

$              29.00


$              (5.93)


$              26.43







GAAP Coal margin

$         127,029


$            (2,064)


$         124,965

Add: Depreciation, depletion and amortization - production (1)

23,181


1,160


24,341

Add: Accretion on asset retirement obligations

3,408


3,266


6,674

Add: Amortization of acquired intangibles, net

3,063


(83)


2,980

Add: Idled and closed mine costs

4,932


2,927


7,859

Non-GAAP Coal margin

$         161,613


$              5,206


$         166,819

Tons sold

4,380


348


4,728

Non-GAAP Coal margin per ton

$              36.90


$              14.96


$              35.28



(1)

Depreciation, depletion and amortization - production excludes the depreciation, depletion and amortization related to selling, general and administrative functions.

 


Nine Months Ended September 30, 2022

(In thousands, except for per ton data)

Met


All Other


Consolidated

Coal revenues

$      3,213,639


$           58,206


$      3,271,845

Less: Freight and handling fulfillment revenues

(423,132)


(21)


(423,153)

Non-GAAP Coal revenues

$      2,790,507


$           58,185


$      2,848,692

Tons sold

11,726


771


12,497

Non-GAAP Coal sales realization per ton

$           237.98


$              75.47


$           227.95







Cost of coal sales (exclusive of items shown separately below)

$      1,684,224


$           52,487


$      1,736,711

Depreciation, depletion and amortization - production (1)

81,009


1,953


82,962

Accretion on asset retirement obligations

10,178


7,644


17,822

Amortization of acquired intangibles, net

13,182


2,856


16,038

Total Cost of coal sales

$      1,788,593


$           64,940


$      1,853,533

Less: Freight and handling costs

(423,132)


(21)


(423,153)

Less:  Depreciation, depletion and amortization - production (1)

(81,009)


(1,953)


(82,962)

Less: Accretion on asset retirement obligations

(10,178)


(7,644)


(17,822)

Less: Amortization of acquired intangibles, net

(13,182)


(2,856)


(16,038)

Less: Idled and closed mine costs

(9,892)


(9,617)


(19,509)

Non-GAAP Cost of coal sales

$      1,251,200


$           42,849


$      1,294,049

Tons sold

11,726


771


12,497

Non-GAAP Cost of coal sales per ton

$           106.70


$              55.58


$           103.55



(1)

Depreciation, depletion and amortization - production excludes the depreciation, depletion and amortization related to selling, general and administrative functions.

 


Nine Months Ended September 30, 2022

(In thousands, except for per ton data)

Met


All Other


Consolidated

Coal revenues

$      3,213,639


$           58,206


$      3,271,845

Less: Total Cost of coal sales (per table above)

(1,788,593)


(64,940)


(1,853,533)

GAAP Coal margin

$      1,425,046


$            (6,734)


$      1,418,312

Tons sold

11,726


771


12,497

GAAP Coal margin per ton

$           121.53


$              (8.73)


$           113.49







GAAP Coal margin

$      1,425,046


$            (6,734)


$      1,418,312

Add: Depreciation, depletion and amortization - production (1)

81,009


1,953


82,962

Add: Accretion on asset retirement obligations

10,178


7,644


17,822

Add: Amortization of acquired intangibles, net

13,182


2,856


16,038

Add: Idled and closed mine costs

9,892


9,617


19,509

Non-GAAP Coal margin

$      1,539,307


$           15,336


$      1,554,643

Tons sold

11,726


771


12,497

Non-GAAP Coal margin per ton

$           131.27


$              19.89


$           124.40



(1)

Depreciation, depletion and amortization - production excludes the depreciation, depletion and amortization related to selling, general and administrative functions.

 


Nine Months Ended September 30, 2021

(In thousands, except for per ton data)

Met


All Other


Consolidated

Coal revenues

$      1,362,119


$           63,920


$      1,426,039

Less: Freight and handling fulfillment revenues

(252,532)


(504)


(253,036)

Non-GAAP Coal revenues

$      1,109,587


$           63,416


$      1,173,003

Tons sold

11,785


1,030


12,815

Non-GAAP Coal sales realization per ton

$              94.15


$              61.57


$              91.53







Cost of coal sales (exclusive of items shown separately below)

$      1,125,840


$           56,520


$      1,182,360

Depreciation, depletion and amortization - production (1)

75,403


4,321


79,724

Accretion on asset retirement obligations

10,170


9,800


19,970

Amortization of acquired intangibles, net

9,749


(347)


9,402

Total Cost of coal sales

$      1,221,162


$           70,294


$      1,291,456

Less: Freight and handling costs

(252,532)


(504)


(253,036)

Less:  Depreciation, depletion and amortization - production (1)

(75,403)


(4,321)


(79,724)

Less: Accretion on asset retirement obligations

(10,170)


(9,800)


(19,970)

Less: Amortization of acquired intangibles, net

(9,749)


347


(9,402)

Less: Idled and closed mine costs

(13,325)


(10,215)


(23,540)

Non-GAAP Cost of coal sales

$         859,983


$           45,801


$         905,784

Tons sold

11,785


1,030


12,815

Non-GAAP Cost of coal sales per ton

$              72.97


$              44.47


$              70.68



(1)

Depreciation, depletion and amortization - production excludes the depreciation, depletion and amortization related to selling, general and administrative functions.

 


Nine Months Ended September 30, 2021

(In thousands, except for per ton data)

Met


All Other


Consolidated

Coal revenues

$      1,362,119


$           63,920


$      1,426,039

Less: Total Cost of coal sales (per table above)

(1,221,162)


(70,294)


(1,291,456)

GAAP Coal margin

$         140,957


$            (6,374)


$         134,583

Tons sold

11,785


1,030


12,815

GAAP Coal margin per ton

$              11.96


$              (6.19)


$              10.50







GAAP Coal margin

$         140,957


$            (6,374)


$         134,583

Add: Depreciation, depletion and amortization - production (1)

75,403


4,321


79,724

Add: Accretion on asset retirement obligations

10,170


9,800


19,970

Add: Amortization of acquired intangibles, net

9,749


(347)


9,402

Add: Idled and closed mine costs

13,325


10,215


23,540

Non-GAAP Coal margin

$         249,604


$           17,615


$         267,219

Tons sold

11,785


1,030


12,815

Non-GAAP Coal margin per ton

$              21.18


$              17.10


$              20.85



(1)

Depreciation, depletion and amortization - production excludes the depreciation, depletion and amortization related to selling, general and administrative functions.

 


Three Months Ended June 30, 2022

(In thousands, except for per ton data)

Met


All Other


Consolidated

Non-GAAP Cost of coal sales

$         450,994


$           12,675


$         463,669

Less: cost of purchased coal sold

(33,171)



(33,171)

Adjusted cost of produced coal sold

$         417,823


$           12,675


$         430,498

Produced tons sold

3,929


254


4,183

Adjusted cost of produced coal sold per ton (1)

$           106.34


$              49.90


$           102.92



(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 September 30, 2022

(In thousands, except for per ton data)

Met


All Other


Consolidated

Non-GAAP Cost of coal sales

$         408,553


$           16,803


$         425,356

Less: cost of purchased coal sold

(21,222)



(21,222)

Adjusted cost of produced coal sold

$         387,331


$           16,803


$         404,134

Produced tons sold

3,795


249


4,044

Adjusted cost of produced coal sold per ton (1)

$           102.06


$              67.48


$              99.93



(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 September 30, 2021

(In thousands, except for per ton data)

Met


All Other


Consolidated

Non-GAAP Cost of coal sales

$         335,582


$           16,518


$         352,100

Less: cost of purchased coal sold

(32,168)



(32,168)

Adjusted cost of produced coal sold

$         303,414


$           16,518


$         319,932

Produced tons sold

4,107


348


4,455

Adjusted cost of produced coal sold per ton (1)

$              73.88


$              47.47


$              71.81



(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.

 


Nine Months Ended September 30, 2022

(In thousands, except for per ton data)

Met


All Other


Consolidated

Non-GAAP Cost of coal sales

$      1,251,200


$           42,849


$      1,294,049

Less: cost of purchased coal sold

(82,235)


(37)


(82,272)

Adjusted cost of produced coal sold

$      1,168,965


$           42,812


$      1,211,777

Produced tons sold

11,377


770


12,147

Adjusted cost of produced coal sold per ton (1)

$           102.75


$              55.60


$              99.76



(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.

 


Nine Months Ended September 30, 2021

(In thousands, except for per ton data)

Met


All Other


Consolidated

Non-GAAP Cost of coal sales

$         859,983


$           45,801


$         905,784

Less: cost of purchased coal sold

(75,074)



(75,074)

Adjusted cost of produced coal sold

$         784,909


$           45,801


$         830,710

Produced tons sold

11,028


1,030


12,058

Adjusted cost of produced coal sold per ton (1)

$              71.17


$              44.47


$              68.89



(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 September 30, 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

1,433


$       299,218


$         208.81


41 %

Domestic

945


189,224


$         200.24


27 %

Export - Australian indexed

1,144


184,848


$         161.58


32 %

Total Met segment - met coal

3,522


$       673,290


$         191.17


100 %

Met segment - thermal coal

374


44,763


$         119.69



Total Met segment Coal revenues

3,896


718,053


$         184.31



All Other Coal revenues

249


27,208


$         109.27



Non-GAAP Coal revenues

4,145


$       745,261


$         179.80



Add: Freight and handling fulfillment revenues


122,588





Coal revenues

4,145


$       867,849





 

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SOURCE Alpha Metallurgical Resources, Inc.

Copyright 2022 PR Newswire

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