ST. LOUIS, July 26, 2011 /PRNewswire/ -- Patriot Coal
Corporation (NYSE: PCX) today reported its financial results for
the quarter ended June 30, 2011.
For the 2011 second quarter, the Company reported record
revenues of $632.2 million and record
EBITDA of $70.2 million.
Revenues and EBITDA for the year-ago quarter were
$539.0 million and $40.6 million, respectively. For the six
months ended June 30, 2011, the
Company reported revenues of $1.2
billion and EBITDA of $118.8
million. Revenues and EBITDA for the first half of
2010 were $1.0 billion and
$85.8 million, respectively.
During the second quarter, the Company recorded an asset
retirement obligation of $24.0
million for the planned treatment of certain selenium
discharges at the Hobet surface mine, in connection with the
submission of a remediation plan related to a previous court
ruling. As a result of this charge, the Company reported a
net loss of $12.4 million and net
loss per share of $0.14 for the 2011
second quarter.
"Our improved performance this quarter highlights the potential
of Patriot's existing operations and the results of our detailed
planning and execution," noted Patriot President and Chief
Executive Officer Richard M.
Whiting. "We are nearing a major turning point in the
life of our company."
"Looking to 2012 and beyond, we expect to achieve even stronger
operating results as we benefit from our "Met Build-Out" project.
In recent months, we started production at two new met mines
– the Gateway Eagle mine in the Rocklick complex and the Workman Branch mine
in the Wells complex. And we have made significant progress
constructing the entry slope at Kanawha Eagle's Peerless mine,
where we expect to begin production late this year," continued
Whiting. "Further, as 2012 comes more clearly into view, we
will see a positive impact from the re-pricing to market levels of
3.5 million tons of Illinois Basin
coal currently sold under a legacy customer contract. Our
team is actively managing the sale of these tons, with close to 80
percent of the volume already sold for 2012."
"Turning to the markets, we are encouraged by the strength of
the global thermal coal market. Since our April update, we
booked nearly 7 million thermal tons for export through 2014,
including sales from each of our basins. Over half of this
volume will be sourced from the Illinois Basin, including tons previously sold
under the legacy contract," stated Whiting. "On the met side,
since our April update we contracted an additional 400,000 tons for
2011 delivery. With the cycle of annual contracting largely
completed for 2011, we do not expect the next wave of met
contracting to occur before the fourth quarter."
"Our cash flow from operating activities topped $80 million this quarter, more than twice the
previous quarterly high of $39
million. After covering capital expenditures and a
litigation settlement, we generated free cash flow of more than
$20 million," added Patriot Senior
Vice President and Chief Financial Officer Mark N. Schroeder. "This is a clear
indication of our future earnings power and cash flow trends, and
our ability to continue to grow our business."
Financial Overview
Commenting further on the second quarter, Schroeder noted, "We
are pleased with our record revenues and record EBITDA achieved
this quarter. This marks our third consecutive increase in
quarterly EBITDA, led by solid operating performance at our mines,
along with higher selling prices. These stronger results were
consistent with our operating and financial plans."
"Costs per ton in both of our segments increased this quarter
and for the first six months were at the upper end of our annual
guidance. A number of factors impacted our costs this
quarter, including the new metallurgical mines coming on-line, met
tons being a larger portion of our total sales mix, higher
sales-related costs, and the idling of the Panther longwall for
about two weeks for an equipment component upgrade," continued
Schroeder. "While the richer product mix has pressured our
per-ton costs, our focus remains on expanding our bottom line
through higher-margin business opportunities."
Revenues in the 2011 second quarter were $632.2 million, compared with $539.0 million in the prior year quarter.
Higher revenues in the 2011 quarter compared with the prior
year resulted from higher selling prices in 2011, which increased
almost $11.00, or 16 percent, over a
year ago.
Sales in the second quarter totaled 8.1 million tons, including
6.1 million tons of thermal and 2.0 million tons of metallurgical
coal. This compares with 6.2 million tons of thermal and 1.9
million tons of metallurgical coal sold in the year-ago quarter.
EBITDA in the 2011 second quarter was $70.2 million, compared with $40.6 million in the same quarter of 2010.
Higher EBITDA was driven by higher average selling prices.
The 2011 second quarter EBITDA included gains on
reserve-related transactions of $9.4
million, compared with $17.8
million in the 2010 second quarter.
Credit and Capital
As of June 30, 2011, the Company
had available liquidity of more than $480
million, with a cash balance of $263
million and no borrowings on its revolving credit facility
or its receivables securitization program.
Capital expenditures totaled $40.7
million in the 2011 second quarter. For 2011, the
Company expects capital expenditures to be near $175 million, as Patriot expands its
metallurgical coal production capability.
During the quarter, the Company paid $14.8 million in settlement of litigation in
connection with a lawsuit filed prior to the 2007 spin-off.
The settlement did not result in any impact to the Company's
statement of operations during the quarter, as Patriot received
certain mineral reserves while assuming related liabilities from
the plaintiff as part of the settlement.
Safety and Environmental
As a result of the Company's comprehensive safety program, in
the first half of 2011 Patriot achieved an accident incidence rate
of 2.86 per 200,000 hours worked, nearly a 20 percent improvement
compared with the 2010 year. Additionally, during the quarter
three Patriot operations in West
Virginia received state-wide Joseph A. Holmes Safety Awards,
and Fredrick Collins, Jr., Patriot's
Senior Safety Manager, was recognized as a Coal Safety Leader by
the Holmes Safety Association.
In recognition of outstanding reclamation, Patriot operations
also received two regional Appalachian Regional Reforestation
Initiative (ARRI) Awards, and the Company's Guyan surface mine in
the Logan County complex
subsequently won the highest ARRI award, presented to one
reclamation project from the submissions of seven different
states.
Market Overview
Forecasts continue to point to the sustainability of coal market
globalization. Global seaborne demand for metallurgical coal
is expected to increase more than 50 percent from about 250 million
metric tonnes in 2010 to nearly 400 million tonnes by 2020.
On the thermal side, global seaborne demand is expected to
increase more than 30 percent from 2010 to 2020, to almost 1
billion tonnes. With supply constraints worldwide, Patriot
believes U.S. metallurgical and thermal coal will increasingly be
shipped overseas to satisfy the robust global demand. Eastern
U.S. metallurgical and thermal coals, in particular, are
well-positioned to participate in these growing export markets.
The Company believes the metallurgical coal market will remain
tight. Patriot's response to these tight met markets is to
continue its Met Build-Out project, increasing met production to at
least 11 million tons by 2013. The Company is on track with
this expansion plan, which includes acquiring equipment, finalizing
permits, and hiring supervisors and hourly employees. The
manageable size of each mine within the Met Build-Out is a distinct
advantage, as it allows the Company to methodically increase
production in line with sales commitments, and to benefit from its
existing operational footprint.
In thermal markets, the Company expects to see continued
opportunities for exports, as Asian markets build more coal-fueled
power plants, putting more demand on global supply. The
physical access of U.S. coals to the European thermal market,
coupled with numerous coal quality alternatives, should make the
U.S. a major ongoing participant in the increasingly global
marketplace.
Patriot expects U.S. coal exports to approximate 100 million
tons in 2011. The Company plans to export approximately 25
percent of its 2011 production, with exports anticipated to expand
to more than 10 million tons, or 30 percent, in 2012.
Outlook
For the year 2011, the Company anticipates sales volume of 31 to
32 million tons, including metallurgical coal sales of at least 8
million tons. For the Appalachia segment, the Company expects
cost per ton in the third quarter to be in the mid-$70's, declining to the low-$70's in the fourth quarter. The full-year
cost is expected to average just over $70 per ton, as the met percentage increases to
approximately 35 percent by year-end, from 30 percent at the
beginning of 2011. For the Illinois Basin segment, Patriot expects cost
per ton for the 2011 year to average $42 to
$44.
Higher cost per ton will result from the new met mines beginning
production in 2011, higher sales-related costs, and increased costs
related to an anticipated new labor agreement with the UMWA.
Additionally, the third quarter will be impacted by longwall
moves at both Federal and Panther, downtime for miner vacations and
repairs performed during the vacation periods.
Average selling prices of currently priced tons for the
remainder of 2011 and for 2012 are as follows:
|
|
(Tons in millions)
|
Second Half
2011
|
|
2012
|
|
|
Tons
|
Price per ton
|
|
Tons
|
Price per ton
|
|
Appalachia – thermal
|
7.9
|
$ 60
|
|
|
11.4
|
$ 64
|
|
Illinois Basin –
thermal
|
3.6
|
$ 41
|
|
|
5.2
|
$ 49
|
|
Appalachia – met
|
4.0
|
$151
|
|
|
1.0
|
$151
|
|
Total
|
15.5
|
|
|
|
17.6
|
|
|
|
|
|
|
|
|
|
|
|
The increase in priced 2012 met business compared with the first
quarter earnings release includes newly booked Panther-type tons at
prices averaging $150 per ton,
coupled with the impact of changes in the timing of 2011 and 2012
met deliveries.
Priced thermal business includes 4.1 million tons for the second
half of 2011 and 4.7 million tons for 2012 related to legacy
contracts priced significantly below the current market. The
Company has around 0.5 million tons of coal remaining to be priced
for 2011 delivery.
Conference Call
Management will hold a conference call to discuss the second
quarter results on July 26, 2011, at
10:00 a.m. Central Time. The
conference call can be accessed by dialing 800-700-7860, or through
the Patriot Coal website at www.patriotcoal.com.
International callers can dial 612-332-1210 to access the
conference call. A replay of the conference call will be
available on the Company's website and also by telephone, at
800-475-6701 for domestic callers or 320-365-3844 for international
callers, access code 210390.
About Patriot Coal
Patriot Coal Corporation is a leading producer and marketer of
coal in the eastern United States,
with 14 active mining complexes in Appalachia and the Illinois Basin. The Company ships to
domestic and international electricity generators, industrial users
and metallurgical coal customers, and controls approximately 1.9
billion tons of proven and probable coal reserves. The
Company's common stock trades on the New York Stock Exchange under
the symbol PCX.
Forward-Looking Statements
Certain statements in this press release are forward-looking as
defined in the Private Securities Litigation Reform Act of 1995.
These statements involve certain risks and uncertainties that
may be beyond our control and may cause our actual future results
to differ materially from expectations. We do not undertake
to update our forward-looking statements. Factors that could
affect our results include, but are not limited to: price
volatility and demand, particularly in higher margin products;
geologic, equipment and operational risks associated with mining;
changes in general economic conditions, including coal, power and
steel market conditions; coal mining laws and regulations; the
availability and costs of competing energy resources; legislative
and regulatory developments; risks associated with environmental
laws and compliance, including selenium-related matters;
developments in greenhouse gas emission regulation and treatment;
negotiation of labor contracts, labor availability and relations;
the outcome of pending or future litigation; changes in the costs
to provide healthcare to eligible active employees and certain
retirees under postretirement benefit obligations; increases to
contribution requirements to multi-employer retiree healthcare and
pension plans; reductions of purchases or deferral of shipments by
major customers; availability and costs of credit; customer
performance and credit risks; inflationary trends; worldwide
economic and political conditions; downturns in consumer and
company spending; supplier and contract miner performance and the
availability and cost of key equipment and commodities;
availability and costs of transportation; the Company's ability to
replace coal reserves; the outcome of commercial negotiations
involving sales contracts or other transactions; our ability to
respond to changing customer preferences; failure to comply with
debt covenants; the effects of mergers, acquisitions and
divestitures; and weather patterns affecting energy demand or
disrupting coal supply. The Company undertakes no obligation
(and expressly disclaims any such obligation) to publicly update or
revise any forward-looking statement, whether as a result of new
information, future events or otherwise. For additional
information concerning factors that could cause actual results to
materially differ from those projected herein, please refer to the
Company's Form 10-K and Form 10-Q reports.
Condensed Consolidated
Statements of Operations (Unaudited)
For the Three Months Ended June
30, 2011 and 2010
|
|
|
|
|
|
|
|
(In thousands, except share and
per share data)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended June 30,
|
|
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
Tons sold
|
|
8,097
|
|
8,066
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
|
|
Sales
|
|
$
623,902
|
|
$
533,800
|
|
Other revenues
|
|
8,258
|
|
5,192
|
|
Total revenues
|
|
632,160
|
|
538,992
|
|
|
|
|
|
|
|
Costs and expenses
|
|
|
|
|
|
Operating costs and
expenses
|
|
560,269
|
|
504,203
|
|
Depreciation, depletion
and amortization
|
|
46,370
|
|
50,350
|
|
Asset retirement
obligation expense
|
|
35,115
|
|
11,004
|
|
Sales contract
accretion
|
|
(15,815)
|
|
(33,735)
|
|
Restructuring and
impairment charge
|
|
137
|
|
14,838
|
|
Selling and administrative
expenses
|
|
14,060
|
|
13,198
|
|
Net gain on disposal or
exchange of assets
|
|
(9,372)
|
|
(17,759)
|
|
Income from equity
affiliates
|
|
(2,998)
|
|
(1,244)
|
|
Operating profit
(loss)
|
|
4,394
|
|
(1,863)
|
|
Interest expense and
other
|
|
16,583
|
|
14,795
|
|
Interest income
|
|
(52)
|
|
(3,249)
|
|
Loss before income
taxes
|
|
(12,137)
|
|
(13,409)
|
|
Income tax provision
|
|
218
|
|
165
|
|
Net loss
|
|
$
(12,355)
|
|
$
(13,574)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding, basic and diluted
|
|
91,284,418
|
|
90,863,950
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss per share, basic and
diluted
|
|
$
(0.14)
|
|
$
(0.15)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
$
70,201
|
|
$
40,594
|
|
|
|
|
|
|
|
|
|
|
|
|
|
This information is intended to
be reviewed in conjunction with the Company's filings with the
Securities and Exchange Commission.
|
|
|
|
|
|
|
Condensed Consolidated
Statements of Operations (Unaudited)
For the Six Months Ended June
30, 2011 and 2010
|
|
|
|
|
|
|
|
(In thousands, except share and
per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months
Ended June 30,
|
|
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tons sold
|
|
16,059
|
|
15,661
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
|
|
Sales
|
|
$ 1,194,280
|
|
$
998,008
|
|
Other revenues
|
|
14,904
|
|
8,241
|
|
Total revenues
|
|
1,209,184
|
|
1,006,249
|
|
|
|
|
|
|
|
Costs and expenses
|
|
|
|
|
|
Operating costs and
expenses
|
|
1,076,108
|
|
937,694
|
|
Depreciation, depletion
and amortization
|
|
91,072
|
|
99,962
|
|
Asset retirement
obligation expense
|
|
49,569
|
|
21,850
|
|
Sales contract
accretion
|
|
(34,425)
|
|
(59,043)
|
|
Restructuring and
impairment charge
|
|
284
|
|
14,838
|
|
Selling and administrative
expenses
|
|
26,604
|
|
25,972
|
|
Net gain on disposal or
exchange of assets
|
|
(9,415)
|
|
(41,555)
|
|
Income from equity
affiliates
|
|
(2,920)
|
|
(1,692)
|
|
Operating
profit
|
|
12,307
|
|
8,223
|
|
Interest expense and
other
|
|
39,443
|
|
23,827
|
|
Interest income
|
|
(98)
|
|
(6,691)
|
|
Loss before income
taxes
|
|
(27,038)
|
|
(8,913)
|
|
Income tax provision
|
|
613
|
|
400
|
|
Net loss
|
|
$
(27,651)
|
|
$
(9,313)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding, basic and diluted
|
|
91,284,370
|
|
90,849,834
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss per share, basic and
diluted
|
|
$
(0.30)
|
|
$
(0.10)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
$
118,807
|
|
$
85,830
|
|
|
|
|
|
|
|
|
|
|
|
|
|
This information is intended to
be reviewed in conjunction with the Company's filings with the
Securities and Exchange Commission.
|
|
|
|
|
|
|
Supplemental Financial Data
(Unaudited)
For the Three Months Ended June
30, 2011 and 2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended June 30,
|
|
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
Tons Sold (In
thousands)
|
|
|
|
|
|
Appalachia Mining
Operations
|
|
6,234
|
|
6,431
|
|
Illinois Basin Mining
Operations
|
|
1,863
|
|
1,635
|
|
Total
|
|
8,097
|
|
8,066
|
|
|
|
|
|
|
|
Revenue Summary (Dollars in
thousands)
|
|
|
|
|
|
Appalachia Mining
Operations
|
|
$ 543,136
|
|
$ 464,801
|
|
Illinois Basin Mining
Operations
|
|
80,766
|
|
68,999
|
|
Appalachia Other
|
|
8,258
|
|
5,192
|
|
Total
|
|
$ 632,160
|
|
$ 538,992
|
|
|
|
|
|
|
|
Revenues per Ton - Mining
Operations
|
|
|
|
|
|
Appalachia
|
|
$ 87.12
|
|
$ 72.28
|
|
Illinois Basin
|
|
43.35
|
|
42.20
|
|
Total
|
|
77.05
|
|
66.18
|
|
|
|
|
|
|
|
Operating Costs per Ton - Mining
Operations (1)
|
|
|
|
|
|
Appalachia
|
|
$ 68.85
|
|
$ 60.14
|
|
Illinois Basin
|
|
43.70
|
|
43.14
|
|
Total
|
|
63.07
|
|
56.69
|
|
|
|
|
|
|
|
Segment Adjusted EBITDA per Ton
- Mining Operations
|
|
|
|
|
|
Appalachia
|
|
$ 18.27
|
|
$ 12.14
|
|
Illinois Basin
|
|
(0.35)
|
|
(0.94)
|
|
Total
|
|
13.98
|
|
9.49
|
|
|
|
|
|
|
|
|
|
Dollars in
thousands
|
|
|
|
|
|
|
|
Past Mining Obligation
Expense
|
|
$ 44,764
|
|
$ 44,475
|
|
|
|
|
|
|
|
Capital
Expenditures
|
|
40,742
|
|
28,562
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Operating costs are the
direct costs of our mining operations, including income from equity
affiliates, and excluding costs for past mining
obligations.
|
|
|
|
|
|
|
|
This information is intended to
be reviewed in conjunction with the Company's filings with the
Securities and Exchange Commission.
|
|
|
|
|
|
|
Supplemental Financial Data
(Unaudited)
For the Six Months Ended June
30, 2011 and 2010
|
|
|
|
|
|
|
|
Six Months
Ended June 30,
|
|
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
Tons Sold (In
thousands)
|
|
|
|
|
|
Appalachia Mining
Operations
|
|
12,432
|
|
12,280
|
|
Illinois Basin Mining
Operations
|
|
3,627
|
|
3,381
|
|
Total
|
|
16,059
|
|
15,661
|
|
|
|
|
|
|
|
Revenue Summary (Dollars in
thousands)
|
|
|
|
|
|
Appalachia Mining
Operations
|
|
$ 1,038,814
|
|
$
855,181
|
|
Illinois Basin Mining
Operations
|
|
155,466
|
|
142,827
|
|
Appalachia Other
|
|
14,904
|
|
8,241
|
|
Total
|
|
$ 1,209,184
|
|
$ 1,006,249
|
|
|
|
|
|
|
|
Revenues per Ton - Mining
Operations
|
|
|
|
|
|
Appalachia
|
|
$
83.56
|
|
$
69.64
|
|
Illinois Basin
|
|
42.86
|
|
42.24
|
|
Total
|
|
74.37
|
|
63.73
|
|
|
|
|
|
|
|
Operating Costs per Ton - Mining
Operations (1)
|
|
|
|
|
|
Appalachia
|
|
$
66.58
|
|
$
57.68
|
|
Illinois Basin
|
|
42.37
|
|
40.68
|
|
Total
|
|
61.11
|
|
54.02
|
|
|
|
|
|
|
|
Segment Adjusted EBITDA per Ton
- Mining Operations
|
|
|
|
|
|
Appalachia
|
|
$
16.98
|
|
$
11.96
|
|
Illinois Basin
|
|
0.49
|
|
1.56
|
|
Total
|
|
13.26
|
|
9.71
|
|
|
|
|
|
|
|
|
|
Dollars in
thousands
|
|
|
|
|
|
|
|
Past Mining Obligation
Expense
|
|
$
88,870
|
|
$
87,941
|
|
|
|
|
|
|
|
Capital
Expenditures
|
|
71,126
|
|
63,692
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Operating costs are the
direct costs of our mining operations, including income from equity
affiliates, and excluding costs for past mining
obligations.
|
|
|
|
|
|
|
|
This information is intended to
be reviewed in conjunction with the Company's filings with the
Securities and Exchange Commission.
|
|
|
|
|
|
|
Condensed Consolidated Balance
Sheets
June 30, 2011 and December 31,
2010
|
|
|
|
|
|
|
(Dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June
30,
|
|
December
31,
|
|
|
2011
|
|
2010
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
263,100
|
|
$
193,067
|
|
Receivables
|
200,459
|
|
207,365
|
|
Inventories
|
104,483
|
|
97,973
|
|
Other current assets
|
29,807
|
|
28,648
|
|
Total current
assets
|
597,849
|
|
527,053
|
|
Net property, plant, equipment
and mine development
|
3,179,381
|
|
3,160,535
|
|
Notes receivable
|
-
|
|
69,540
|
|
Investments and other
assets
|
68,392
|
|
52,908
|
|
Total
assets
|
$ 3,845,622
|
|
$ 3,810,036
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable and accrued
liabilities
|
$
430,366
|
|
$
409,284
|
|
Below market sales contracts
acquired
|
51,698
|
|
70,917
|
|
Current portion of
debt
|
3,298
|
|
3,329
|
|
Total current
liabilities
|
485,362
|
|
483,530
|
|
Long-term debt, less current
maturities
|
454,117
|
|
451,529
|
|
Below market sales contracts
acquired, noncurrent
|
67,694
|
|
92,253
|
|
Other noncurrent
liabilities
|
1,993,424
|
|
1,939,643
|
|
Total
liabilities
|
3,000,597
|
|
2,966,955
|
|
Common stock, paid-in capital
and retained earnings
|
1,130,876
|
|
1,150,776
|
|
Accumulated other comprehensive
loss
|
(285,851)
|
|
(307,695)
|
|
Total
stockholders' equity
|
845,025
|
|
843,081
|
|
Total liabilities
and stockholders' equity
|
$ 3,845,622
|
|
$ 3,810,036
|
|
|
|
|
|
|
|
|
|
|
|
This information is intended to
be reviewed in conjunction with the Company's filings with the
Securities and Exchange Commission.
|
|
|
|
|
|
Condensed Consolidated
Statements of Cash Flows (Unaudited)
For the Six Months Ended June
30, 2011 and 2010
|
|
|
|
|
|
|
(Dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
Six Months
Ended June 30,
|
|
|
2011
|
|
2010
|
|
|
|
|
|
|
Cash Flows from Operating
Activities
|
|
|
|
|
Net Loss
|
$ (27,651)
|
|
$ (9,313)
|
|
Adjustments to reconcile net
loss to net cash provided by
|
|
|
|
|
operating
activities:
|
|
|
|
|
Depreciation, depletion
and amortization
|
91,072
|
|
99,962
|
|
Sales contract
accretion
|
(34,425)
|
|
(59,043)
|
|
Net gain on disposal or
exchange of assets
|
(9,415)
|
|
(41,555)
|
|
Changes in working capital
and other
|
33,407
|
|
30,747
|
|
Net cash provided by
operating activities
|
52,988
|
|
20,798
|
|
|
|
|
|
|
Cash Flows from Investing
Activities
|
|
|
|
|
Additions to property, plant,
equipment and mine development
|
(71,126)
|
|
(63,692)
|
|
Additions to advance mining
royalties
|
(12,163)
|
|
(9,465)
|
|
Net cash paid in litigation
settlement and asset acquisition
|
(14,787)
|
|
-
|
|
Proceeds from disposal or
exchange of assets
|
2,411
|
|
1,384
|
|
Proceeds from notes
receivable
|
115,679
|
|
22,100
|
|
Investment in joint
ventures
|
-
|
|
(300)
|
|
Net cash provided by (used
in) investing activities
|
20,014
|
|
(49,973)
|
|
|
|
|
|
|
Cash Flows from Financing
Activities
|
|
|
|
|
Proceeds from debt offering, net
of discount
|
-
|
|
248,198
|
|
Deferred financing
costs
|
(1,815)
|
|
(20,542)
|
|
Proceeds from coal reserve
financing transaction
|
-
|
|
17,700
|
|
Long-term debt
payments
|
(2,116)
|
|
(5,179)
|
|
Proceeds from employee stock
programs
|
962
|
|
1,082
|
|
Net cash provided by (used
in) financing activities
|
(2,969)
|
|
241,259
|
|
|
|
|
|
|
Net increase in cash and cash
equivalents
|
70,033
|
|
212,084
|
|
Cash and cash equivalents at
beginning of period
|
193,067
|
|
27,098
|
|
Cash and cash equivalents at end
of period
|
$ 263,100
|
|
$ 239,182
|
|
|
|
|
|
|
|
|
|
|
|
This information is intended to
be reviewed in conjunction with the Company's filings with the
Securities and Exchange Commission.
|
|
|
|
|
|
Reconciliation of Net Loss to
Adjusted EBITDA (Unaudited)
For the Three and Six Months
Ended June 30, 2011 and 2010
|
|
|
|
|
|
|
|
|
(Dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended June 30,
|
|
Reconciliation of net loss to
Adjusted EBITDA:
|
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
Net loss
|
|
|
$ (12,355)
|
|
$ (13,574)
|
|
Depreciation, depletion and
amortization
|
|
|
46,370
|
|
50,350
|
|
Asset retirement obligation
expense
|
|
|
35,115
|
|
11,004
|
|
Sales contract
accretion
|
|
|
(15,815)
|
|
(33,735)
|
|
Restructuring and impairment
charge
|
|
|
137
|
|
14,838
|
|
Interest expense and
other
|
|
|
16,583
|
|
14,795
|
|
Interest income
|
|
|
(52)
|
|
(3,249)
|
|
Income tax provision
|
|
|
218
|
|
165
|
|
Adjusted EBITDA
|
|
|
$ 70,201
|
|
$ 40,594
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months
Ended June 30,
|
|
Reconciliation of net loss to
Adjusted EBITDA:
|
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
Net loss
|
|
|
$ (27,651)
|
|
$ (9,313)
|
|
Depreciation, depletion and
amortization
|
|
|
91,072
|
|
99,962
|
|
Asset retirement obligation
expense
|
|
|
49,569
|
|
21,850
|
|
Sales contract
accretion
|
|
|
(34,425)
|
|
(59,043)
|
|
Restructuring and impairment
charge
|
|
|
284
|
|
14,838
|
|
Interest expense and
other
|
|
|
39,443
|
|
23,827
|
|
Interest income
|
|
|
(98)
|
|
(6,691)
|
|
Income tax provision
|
|
|
613
|
|
400
|
|
Adjusted EBITDA
|
|
|
$ 118,807
|
|
$ 85,830
|
|
|
|
|
|
|
|
|
Adjusted EBITDA, also referred
to as EBITDA, is defined as net loss before deducting interest
income and expense, income taxes, asset retirement obligation
expense, depreciation, depletion and amortization, restructuring
and impairment charge and sales contract accretion.
We have included information
concerning EBITDA because we believe that in our industry such
information is a relevant measurement of a company’s operating
financial performance. Because EBITDA is not calculated
identically by all companies, our calculation may not be comparable
to similarly titled measures of other companies. The table
above reflects the Company's calculation of EBITDA.
|
|
|
|
|
|
|
|
|
This information is intended to
be reviewed in conjunction with the Company's filings with the
Securities and Exchange Commission.
|
|
|
|
|
|
|
|
SOURCE Patriot Coal Corporation