ST. LOUIS, Oct. 20, 2011 /PRNewswire/ -- Patriot Coal
Corporation (NYSE: PCX) today reported its financial results for
the quarter ended September 30, 2011.
For the 2011 third quarter, the Company reported revenues of
$589.4 million and EBITDA of
$14.8 million. Revenues and
EBITDA for the year-ago quarter were $500.7
million and $13.2 million,
respectively. For the nine months ended September 30, 2011, the Company reported revenues
of $1.8 billion and EBITDA of
$133.6 million. Revenues and
EBITDA for the first nine months of 2010 were $1.5 billion and $99.0
million, respectively.
"Looking forward, the outlook for metallurgical and export
thermal coal remains solid, and we are seeing opportunities for
increased profitability at Patriot. We are committed to the
continued expansion of our met production. We are also
targeting export thermal business, and over the past two quarters
have sold more than 7 million tons of thermal coal for export
delivery in 2012, sourced from both Appalachia and the Illinois Basin. And we will see the
initial benefits of our expiring legacy thermal contracts as we
enter 2012," stated Patriot President and Chief Executive Officer
Richard M. Whiting. "At the
same time, we are intensely focused on improving operating
performance at our mining complexes."
"An important development during the quarter was the appointment
of Ben Hatfield as our new Chief
Operating Officer. Ben has more than 30 years of operating
and commercial experience in the coal industry, including the CEO
position at International Coal Group. He is intimately
familiar with coal mining in Appalachia and is a proven leader.
His experience and leadership will further strengthen our
operations as we execute our strategies to build value," continued
Whiting.
"Further, during the quarter, certain of our subsidiaries signed
new agreements with the United Mine Workers of America that
generally extend through 2016. This ensures continued
stability of our represented workforce," concluded Whiting.
Commenting on the third quarter, Patriot Senior Vice President
and Chief Financial Officer Mark N.
Schroeder noted, "Our third quarter financial performance
was well below our expectations. While our per-ton revenues
were up substantially, lower tons produced at the two longwall
mines had a significant negative impact on our average cost per ton
and the resulting margins. Following the completion of the
longwall moves, the mines were back to normal production by the end
of September."
Financial Overview
Revenues in the 2011 third quarter were $589.4 million, compared with $500.7 million in the prior-year quarter.
Higher revenues in the 2011 quarter resulted from higher
selling prices, which increased more than $12.00 per ton, or 18 percent. Revenues for
the first nine months of 2011 were $1.8
billion, almost 20 percent higher than the $1.5 billion reported in the comparable 2010
period. Higher revenues were primarily attributable to
significantly higher selling prices in 2011.
Sales in the third quarter totaled 7.4 million tons, including
5.6 million tons of thermal and 1.8 million tons of metallurgical
coal. This compares with 5.9 million tons of thermal and 1.6
million tons of metallurgical coal sold in the year-ago quarter.
Tons sold in the first nine months of 2011 of 23.5 million
were comparable with the 23.1 million tons sold in the year-ago
period. Year-to-date metallurgical coal sales were 5.6
million in 2011, a 0.5 million ton increase over the first nine
months of 2010.
EBITDA in the 2011 third quarter was $14.8 million, slightly higher than the
$13.2 million reported in the same
quarter of 2010. Higher average selling prices in 2011 were
largely offset by higher per-ton costs. EBITDA for the first
three quarters of 2011 totaled $133.6
million, $34.6 million higher
than the year-ago period.
Credit and Capital
As of September 30, 2011, the
Company had available liquidity of more than $450 million, with a cash balance of $239 million and no borrowings on its revolving
credit facility or its receivables securitization program.
Capital expenditures totaled $48.7
million in the 2011 third quarter and $119.8 million for the first nine months of the
year. Additionally, equipment leased from third parties
totaled $23.8 million in the third
quarter and $94.6 million
year-to-date.
Safety
An important component of the Company's safety program is
maintaining first-class mine rescue teams. In early October,
Patriot's five mine rescue teams competed in the National Mine
Rescue Contest held in Columbus,
Ohio. In total, more than 100 teams competed in this
national event sponsored by the U.S. Department of Labor.
The Company's Magnum team won first place in the National
Combination event, which evaluates the overall proficiency of teams
in both mine rescue and first aid competitions. Patriot's
Highland team won third place in the same event. The Magnum
team also won first place in the Day 2 Mine Rescue competition.
In the National Bio 240S Apparatus event, members of the
Company's Bluegrass team won first and second place, with the
Highland team coming in third. In total, the Company's teams
received 14 top-three awards, including nine first-place
awards.
Market Overview
While the projected GDP growth rates for major economies remain
positive through 2015, near-term concerns about slowing global
growth have caused speculation of a weakening metallurgical coal
market. However, a number of countries are showing signs of
strength, particularly in steel production and demand. Steel
mills in Brazil, a natural
destination for U.S. met coal, are operating at 80 percent of
capacity, with coke plants running near full capacity. In
India, steel producers are increasing capacity substantially, with
the largest Indian steel producer targeting an increase from 13.5
million tonnes in 2010 to 23.6 million tonnes in 2013. South
Korean steel production is up more than 20 percent year-over-year,
and U.S. coke plants continue to run near full capacity.
Low-volatile and premium high-volatile met coal supply remains
tight, while lower quality high-volatile met coals are believed to
be in greater supply. Given the relatively tight worldwide
supply/demand balance, any significant supply disruptions such as
those experienced in recent years would result in stronger pricing
for metallurgical-grade products.
For thermal coal, total U.S. inventories and eastern U.S.
inventories both declined more in June through August 2011 than during the same period in any of
the last 10 years. However, domestic electricity generators
have recently taken a cautious stance in their coal purchases, in
part due to uncertainty caused by the Cross-State Air Pollution
Rule promulgated by the U.S. Environmental Protection Agency.
Thermal coal exports continue at an increasing rate, with
eastern U.S. thermal coals well-positioned to participate in the
growing international seaborne market. Year-to-date through
August, U.S. thermal coal exports increased more than 75 percent
compared with a year ago, and export opportunities are expected to
continue at an elevated level.
Outlook
"Looking forward, we are expecting improved production in the
fourth quarter. There are no scheduled longwall moves, and
the increased production should lead to lower cost per ton.
Together with higher pricing on increased met tons, the
result should be EBITDA in the fourth quarter more in line with the
performance of the first two quarters of this year," concluded
Schroeder.
For the 2011 fourth quarter, Patriot expects sales volume of 8.0
to 8.3 million tons, including met coal sales of approximately 2
million tons. For the Appalachia segment, the Company expects
cost per ton in the fourth quarter to be between $72 and $75. For the Illinois Basin segment, Patriot expects cost
per ton for the fourth quarter of about $44.
Since late July, Patriot booked more than 0.5 million
metallurgical tons to be delivered in 2012, at prices approaching
$200 per ton at the mine.
Similarly, the Company booked approximately 1.5 million tons
of Appalachian thermal sales for 2012 delivery, two-thirds of which
will be sourced from the Federal complex. In total, 3.5
million tons of new Appalachian thermal tons were booked for 2012
through 2015 delivery, including 1.5 million tons to be exported to
Europe.
Average selling prices of currently priced tons for the fourth
quarter of 2011 and for 2012 are as follows:
|
|
(Tons in
millions)
|
4Q
2011
|
|
2012
|
|
|
|
|
|
|
|
|
|
Tons
|
Price per
ton
|
|
Tons
|
Price per
ton
|
|
Appalachia - thermal
|
4.2
|
$ 61
|
|
12.6
|
$ 65
|
|
Illinois Basin -
thermal
|
1.9
|
$ 41
|
|
5.7
|
$ 50
|
|
Appalachia - met
|
2.0
|
$ 150
|
|
1.9
|
$ 164
|
|
Total
|
8.1
|
|
|
20.2
|
|
|
|
|
|
|
|
|
|
|
Priced thermal business includes 2.1 million tons for the fourth
quarter of 2011 and 4.7 million tons for 2012 related to legacy
contracts priced significantly below the current market.
Conference Call
Management will hold a conference call to discuss the third
quarter results on October 20, 2011,
at 9:00 a.m. Central Time. The
conference call can be accessed by dialing 800-398-9379, or through
the Patriot Coal website at www.patriotcoal.com.
International callers can dial 612-332-0342 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 220359.
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
September 30, 2011 and 2010
|
|
|
|
|
|
|
|
(In thousands, except share and
per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended September 30,
|
|
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
Tons sold
|
|
7,424
|
|
7,483
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
|
|
Sales
|
|
$
584,145
|
|
$
496,271
|
|
Other revenues
|
|
5,250
|
|
4,412
|
|
Total revenues
|
|
589,395
|
|
500,683
|
|
|
|
|
|
|
|
Costs and expenses
|
|
|
|
|
|
Operating costs and
expenses
|
|
570,850
|
|
484,168
|
|
Depreciation, depletion
and amortization
|
|
47,040
|
|
44,782
|
|
Asset retirement
obligation expense
|
|
12,364
|
|
31,291
|
|
Sales contract
accretion
|
|
(11,380)
|
|
(30,927)
|
|
Restructuring and
impairment charge
|
|
139
|
|
167
|
|
Selling and administrative
expenses
|
|
12,788
|
|
10,323
|
|
Net gain on disposal or
exchange of assets
|
|
(7,389)
|
|
(3,531)
|
|
Income from equity
affiliates
|
|
(1,650)
|
|
(3,491)
|
|
Operating loss
|
|
(33,367)
|
|
(32,099)
|
|
Interest expense and
other
|
|
16,453
|
|
16,952
|
|
Interest income
|
|
(73)
|
|
(3,128)
|
|
Loss before income
taxes
|
|
(49,747)
|
|
(45,923)
|
|
Income tax provision
(benefit)
|
|
(230)
|
|
70
|
|
Net loss
|
|
$
(49,517)
|
|
$
(45,993)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding, basic and diluted
|
|
91,329,096
|
|
90,968,377
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss per share, basic and
diluted
|
|
$
(0.54)
|
|
$
(0.51)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
$
14,796
|
|
$
13,214
|
|
|
|
|
|
|
|
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 Nine Months Ended
September 30, 2011 and
2010
|
|
|
|
|
|
|
|
(In thousands, except share and
per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended September 30,
|
|
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tons sold
|
|
23,483
|
|
23,144
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
|
|
Sales
|
|
$ 1,778,425
|
|
$ 1,494,279
|
|
Other revenues
|
|
20,154
|
|
12,653
|
|
Total revenues
|
|
1,798,579
|
|
1,506,932
|
|
|
|
|
|
|
|
Costs and expenses
|
|
|
|
|
|
Operating costs and
expenses
|
|
1,646,958
|
|
1,421,862
|
|
Depreciation, depletion
and amortization
|
|
138,112
|
|
144,744
|
|
Asset retirement
obligation expense
|
|
61,933
|
|
53,141
|
|
Sales contract
accretion
|
|
(45,805)
|
|
(89,970)
|
|
Restructuring and
impairment charge
|
|
423
|
|
15,005
|
|
Selling and administrative
expenses
|
|
39,392
|
|
36,295
|
|
Net gain on disposal or
exchange of assets
|
|
(16,804)
|
|
(45,086)
|
|
Income from equity
affiliates
|
|
(4,570)
|
|
(5,183)
|
|
Operating loss
|
|
(21,060)
|
|
(23,876)
|
|
Interest expense and
other
|
|
55,896
|
|
40,779
|
|
Interest income
|
|
(171)
|
|
(9,819)
|
|
Loss before income
taxes
|
|
(76,785)
|
|
(54,836)
|
|
Income tax provision
|
|
383
|
|
470
|
|
Net loss
|
|
$
(77,168)
|
|
$
(55,306)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding, basic and diluted
|
|
91,299,442
|
|
90,889,782
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss per share, basic and
diluted
|
|
$
(0.85)
|
|
$
(0.61)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
$
133,603
|
|
$
99,044
|
|
|
|
|
|
|
|
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
September 30, 2011 and 2010
|
|
|
|
|
|
|
|
Three Months
Ended September 30,
|
|
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
Tons Sold (In
thousands)
|
|
|
|
|
|
Appalachia Mining
Operations
|
|
5,549
|
|
5,985
|
|
Illinois Basin Mining
Operations
|
|
1,875
|
|
1,498
|
|
Total
|
|
7,424
|
|
7,483
|
|
|
|
|
|
|
|
Revenue Summary (Dollars in
thousands)
|
|
|
|
|
|
Appalachia Mining
Operations
|
|
$ 503,950
|
|
$ 434,048
|
|
Illinois Basin Mining
Operations
|
|
80,195
|
|
62,223
|
|
Appalachia Other
|
|
5,250
|
|
4,412
|
|
Total
|
|
$ 589,395
|
|
$ 500,683
|
|
|
|
|
|
|
|
Revenues per Ton - Mining
Operations
|
|
|
|
|
|
Appalachia
|
|
$ 90.82
|
|
$ 72.52
|
|
Illinois Basin
|
|
42.77
|
|
41.54
|
|
Total
|
|
78.68
|
|
66.32
|
|
|
|
|
|
|
|
Operating Costs per Ton - Mining
Operations (1)
|
|
|
|
|
|
Appalachia
|
|
$ 79.10
|
|
$ 61.87
|
|
Illinois Basin
|
|
44.30
|
|
44.27
|
|
Total
|
|
70.30
|
|
58.35
|
|
|
|
|
|
|
|
Segment Adjusted EBITDA per Ton
- Mining Operations
|
|
|
|
|
|
Appalachia
|
|
$ 11.72
|
|
$ 10.65
|
|
Illinois Basin
|
|
(1.53)
|
|
(2.73)
|
|
Total
|
|
8.38
|
|
7.97
|
|
|
|
|
|
|
|
|
|
Dollars in
thousands
|
|
|
|
|
|
|
|
Past Mining Obligation
Expense
|
|
$ 45,762
|
|
$ 42,551
|
|
|
|
|
|
|
|
Capital
Expenditures
|
|
48,672
|
|
30,908
|
|
|
|
|
|
|
|
(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 Nine Months Ended
September 30, 2011 and 2010
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended September 30,
|
|
|
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
Tons Sold (In
thousands)
|
|
|
|
|
|
|
Appalachia Mining
Operations
|
|
|
17,981
|
|
18,265
|
|
Illinois Basin Mining
Operations
|
|
|
5,502
|
|
4,879
|
|
Total
|
|
|
23,483
|
|
23,144
|
|
|
|
|
|
|
|
|
Revenue Summary (Dollars in
thousands)
|
|
|
|
|
|
|
Appalachia Mining
Operations
|
|
|
$ 1,542,764
|
|
$ 1,289,229
|
|
Illinois Basin Mining
Operations
|
|
|
235,661
|
|
205,050
|
|
Appalachia Other
|
|
|
20,154
|
|
12,653
|
|
Total
|
|
|
$ 1,798,579
|
|
$ 1,506,932
|
|
|
|
|
|
|
|
|
Revenues per Ton - Mining
Operations
|
|
|
|
|
|
|
Appalachia
|
|
|
$
85.80
|
|
$
70.58
|
|
Illinois Basin
|
|
|
42.83
|
|
42.03
|
|
Total
|
|
|
75.73
|
|
64.56
|
|
|
|
|
|
|
|
|
Operating Costs per Ton - Mining
Operations (1)
|
|
|
|
|
|
|
Appalachia
|
|
|
$
70.44
|
|
$
59.05
|
|
Illinois Basin
|
|
|
43.03
|
|
41.79
|
|
Total
|
|
|
64.02
|
|
55.41
|
|
|
|
|
|
|
|
|
Segment Adjusted EBITDA per Ton
- Mining Operations
|
|
|
|
|
|
|
Appalachia
|
|
|
$
15.36
|
|
$
11.53
|
|
Illinois Basin
|
|
|
(0.20)
|
|
0.24
|
|
Total
|
|
|
11.71
|
|
9.15
|
|
|
|
|
|
|
|
|
|
|
|
Dollars in
thousands
|
|
|
|
|
|
|
|
|
Past Mining Obligation
Expense
|
|
|
$
134,632
|
|
$
130,492
|
|
|
|
|
|
|
|
|
Capital
Expenditures
|
|
|
119,798
|
|
94,600
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
September 30, 2011 and December
31, 2010
|
|
|
|
|
|
|
(Dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September
30,
|
|
December
31,
|
|
|
2011
|
|
2010
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
239,084
|
|
$
193,067
|
|
Receivables
|
198,300
|
|
207,365
|
|
Inventories
|
96,760
|
|
97,973
|
|
Other current assets
|
25,256
|
|
28,648
|
|
Total current
assets
|
559,400
|
|
527,053
|
|
Net property, plant, equipment
and mine development
|
3,188,259
|
|
3,160,535
|
|
Notes receivable
|
-
|
|
69,540
|
|
Investments and other
assets
|
67,520
|
|
52,908
|
|
Total
assets
|
$
3,815,179
|
|
$ 3,810,036
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable and accrued
liabilities
|
$
442,379
|
|
$
409,284
|
|
Below market sales contracts
acquired
|
48,515
|
|
70,917
|
|
Current portion of
debt
|
20,444
|
|
3,329
|
|
Total current
liabilities
|
511,338
|
|
483,530
|
|
Long-term debt, less current
maturities
|
438,603
|
|
451,529
|
|
Below market sales contracts
acquired, noncurrent
|
54,821
|
|
92,253
|
|
Other noncurrent
liabilities
|
2,004,188
|
|
1,939,643
|
|
Total
liabilities
|
3,008,950
|
|
2,966,955
|
|
Common stock, paid-in capital
and retained earnings
|
1,085,289
|
|
1,150,776
|
|
Accumulated other comprehensive
loss
|
(279,060)
|
|
(307,695)
|
|
Total
stockholders' equity
|
806,229
|
|
843,081
|
|
Total liabilities
and stockholders' equity
|
$
3,815,179
|
|
$ 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 Nine Months Ended
September 30, 2011 and 2010
|
|
|
|
|
|
|
(Dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended September 30,
|
|
|
2011
|
|
2010
|
|
|
|
|
|
|
Cash Flows from Operating
Activities
|
|
|
|
|
Net Loss
|
$ (77,168)
|
|
$ (55,306)
|
|
Adjustments to reconcile net
loss to net cash provided by
|
|
|
|
|
operating
activities:
|
|
|
|
|
Depreciation, depletion
and amortization
|
138,112
|
|
144,744
|
|
Sales contract
accretion
|
(45,805)
|
|
(89,970)
|
|
Net gain on disposal or
exchange of assets
|
(16,804)
|
|
(45,086)
|
|
Changes in working capital
and other
|
80,234
|
|
68,602
|
|
Net cash provided by
operating activities
|
78,569
|
|
22,984
|
|
|
|
|
|
|
Cash Flows from Investing
Activities
|
|
|
|
|
Additions to property, plant,
equipment and mine development
|
(119,798)
|
|
(94,600)
|
|
Additions to advance mining
royalties
|
(17,728)
|
|
(14,768)
|
|
Net cash paid in litigation
settlement and asset acquisition
|
(14,787)
|
|
-
|
|
Proceeds from disposal or
exchange of assets
|
6,691
|
|
1,526
|
|
Proceeds from notes
receivable
|
115,679
|
|
25,100
|
|
Investment in joint
ventures
|
-
|
|
(300)
|
|
Net cash used in investing
activities
|
(29,943)
|
|
(83,042)
|
|
|
|
|
|
|
Cash Flows from Financing
Activities
|
|
|
|
|
Proceeds from debt offering, net
of discount
|
-
|
|
248,198
|
|
Deferred financing
costs
|
(1,830)
|
|
(20,972)
|
|
Proceeds from coal reserve
financing transaction
|
-
|
|
17,700
|
|
Long-term debt
payments
|
(2,894)
|
|
(6,237)
|
|
Proceeds from employee stock
programs
|
2,115
|
|
2,474
|
|
Net cash provided by (used
in) financing activities
|
(2,609)
|
|
241,163
|
|
|
|
|
|
|
Net increase in cash and cash
equivalents
|
46,017
|
|
181,105
|
|
Cash and cash equivalents at
beginning of period
|
193,067
|
|
27,098
|
|
Cash and cash equivalents at end
of period
|
$ 239,084
|
|
$ 208,203
|
|
|
|
|
|
|
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 Nine Months
Ended September 30, 2011 and 2010
|
|
|
|
|
|
|
|
|
(Dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended September 30,
|
|
Reconciliation of net loss to
Adjusted EBITDA:
|
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
Net loss
|
|
|
$ (49,517)
|
|
$ (45,993)
|
|
Depreciation, depletion and
amortization
|
|
|
47,040
|
|
44,782
|
|
Asset retirement obligation
expense
|
|
|
12,364
|
|
31,291
|
|
Sales contract
accretion
|
|
|
(11,380)
|
|
(30,927)
|
|
Restructuring and impairment
charge
|
|
|
139
|
|
167
|
|
Interest expense and
other
|
|
|
16,453
|
|
16,952
|
|
Interest income
|
|
|
(73)
|
|
(3,128)
|
|
Income tax provision
(benefit)
|
|
|
(230)
|
|
70
|
|
Adjusted EBITDA
|
|
|
$ 14,796
|
|
$ 13,214
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended September 30,
|
|
Reconciliation of net loss to
Adjusted EBITDA:
|
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
Net loss
|
|
|
$ (77,168)
|
|
$ (55,306)
|
|
Depreciation, depletion and
amortization
|
|
|
138,112
|
|
144,744
|
|
Asset retirement obligation
expense
|
|
|
61,933
|
|
53,141
|
|
Sales contract
accretion
|
|
|
(45,805)
|
|
(89,970)
|
|
Restructuring and impairment
charge
|
|
|
423
|
|
15,005
|
|
Interest expense and
other
|
|
|
55,896
|
|
40,779
|
|
Interest income
|
|
|
(171)
|
|
(9,819)
|
|
Income tax provision
|
|
|
383
|
|
470
|
|
Adjusted EBITDA
|
|
|
$ 133,603
|
|
$ 99,044
|
|
|
|
|
|
|
|
|
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