ST. LOUIS, Feb. 2, 2012 /PRNewswire/ -- Patriot Coal
Corporation (NYSE: PCX) today reported its financial results for
the quarter and year ended December 31,
2011. For the 2011 fourth quarter, the Company
reported revenues of $603.9 million
and EBITDA of $43.1 million.
Revenues and EBITDA for the year-ago quarter were
$528.2 million and $42.8 million, respectively. For the year,
the Company reported revenues of $2.4
billion and EBITDA of $176.7
million. Revenues and EBITDA for 2010 were
$2.0 billion and $141.9 million, respectively. EBITDA for
2011 increased 25 percent over the prior year.
"Our 2011 financial performance improved over the prior year,
and we made progress in a number of key areas that will contribute
to more predictable performance in the future. Improvements
included strengthening our operating management team, upgrading
equipment and ramping up our export thermal sales," commented
Patriot President and Chief Executive Officer Richard M. Whiting. "Headwinds created by
low natural gas prices, mild weather, and weaker international and
domestic economies impacted coal markets during the year, and
market weakness continues as we enter 2012. In the near term,
our management team will focus on our detailed operating plans,
emphasizing swift decisions and solid execution."
"Metallurgical coal demand has trended downward in recent weeks,
particularly in export markets," added Whiting. "As
previously announced, we have taken actions to match our met
production with expected sales volume. We are reducing production
at both our Rocklick and Wells
complexes, with particular emphasis on higher-cost operations, and
delaying certain of our met expansion plans."
"Likewise, given our view that the domestic thermal coal market
is likely to remain depressed for an extended period, we have
conducted a rigorous review of our Central Appalachia thermal mine
portfolio," continued Whiting. "As a result, we made the
decision to idle the Big Mountain complex in Boone County, West Virginia, effective today.
Big Mountain produced 1.8 million tons of thermal coal in
2011. This decision effectively positions Patriot with no
remaining uncommitted Appalachia thermal coal in 2012."
"As we have previously stated, our modular mine portfolio allows
us the versatility to dial production up or down in a timely manner
in response to market conditions," noted Whiting. "Looking
forward, we believe Patriot and our stockholders are best served by
leaving our high-quality coals in the ground until demand for these
products strengthens."
Financial Overview
"Patriot delivered solid financial results in 2011, as we
achieved higher pricing and expanded our met coal volume. Our
revenues grew by $400 million in
2011, led by strong met pricing. And our EBITDA for the year
increased 25 percent over last year," noted Patriot Senior Vice
President and Chief Financial Officer Mark
N. Schroeder. "Importantly, our EBITDA has shown
steady improvement each year since we became a public company."
Revenues in the 2011 fourth quarter were $603.9 million, compared with $528.2 million in the prior-year quarter.
Higher revenues in the 2011 quarter resulted from higher
selling prices, which increased $10.72 per ton. Revenues for 2011 year were
$2.4 billion, 18 percent higher than
the $2.0 billion reported in 2010.
Similarly, higher revenues for the year were primarily
attributable to significantly higher selling prices.
Sales in the fourth quarter totaled 7.6 million tons, including
5.8 million tons of thermal and 1.8 million tons of metallurgical
coal. This compares with 6.0 million tons of thermal and 1.7
million tons of met coal sold in the year-ago quarter.
Full-year 2011 sales volume of 31.1 million tons was
comparable with the 30.9 million tons sold in 2010. Met coal
sales in 2011 totaled 7.4 million tons, a 0.5 million ton increase
over 2010.
EBITDA in the 2011 fourth quarter was $43.1 million, compared with $42.8 million reported in the same quarter of
2010. Higher average selling prices in 2011 were offset by
higher per-ton costs. EBITDA for 2011 totaled $176.7 million, $34.9
million higher than reported in 2010.
"Our fourth quarter EBITDA included a gain of $18.8 million on a reserve swap in which we
acquired 35 million tons of coal reserves at our Highland and Dodge
Hill complexes," continued Schroeder. "We also incurred
unusual charges that reduced fourth quarter EBITDA by $11 million, including $5
million to settle certain retiree healthcare benefit
obligations at a closed facility and $6
million related to a vendor contract."
Asset retirement obligation expense included a $7.5 million accrual for a settlement that
provides a comprehensive framework for compliance with selenium
requirements across the Company's properties going forward.
A restructuring and impairment charge of $13.2 million in the 2011 fourth quarter related
primarily to infrastructure and reserves impacted by mine closure
decisions made in the fourth quarter.
Credit and Capital
As of December 31, 2011, the
Company had available liquidity of $415
million, with a cash balance of $194
million and no borrowings on its revolving credit facility
or its receivables securitization program. During the
quarter, Patriot paid $28 million to
purchase the Blue Creek
preparation plant and associated infrastructure which had
previously been leased.
In line with previously announced estimates, capital
expenditures totaled $54.9 million in
the 2011 fourth quarter and $174.7
million for the year. Additionally, leased equipment
totaled $19.1 million in the fourth
quarter and $113.7 million for the
year. For 2012, Patriot expects capital expenditures in the
range of $160 to $180 million.
Safety
Maintaining a safe workplace is Patriot's top operational
priority. In 2011, Patriot again achieved record safety
results, with an incidence rate of 2.73 per 200,000 hours worked.
This compares very favorably with the national average
industry rate for all coal mines of 3.61 and with the Company's
safety incidence rate of 3.53 in 2010.
During the year, Patriot's mine rescue teams achieved
outstanding results, including nine first-place awards at the 2011
National Mine Rescue Contest sponsored by the U.S. Department of
Labor. Additionally, the Company's safety program was
recognized with six awards during the year, including a prestigious
Mountaineer Guardian Safety Award.
Market Overview
The demand for metallurgical coal used in the production of
steel is dependent on the strength of global economies. In
the near term, concerns over the pace of growth in China, the European financial crisis and the
strength of the U.S. recovery have caused downward pressure on
steel demand. Even with these short-term concerns, U.S. coke
plants are running near capacity and global steel mill percentage
utilization remains in the mid-70s.
For thermal coal, uncertainty over the U.S. economy and
environmental regulations, weak natural gas prices and mild weather
have led to reduced coal-fueled generation and coal pricing.
While implementation of the Cross-State Air Pollution Rule
has been delayed by the courts, the future outcome of this rule
remains unknown, as does the timeframe for compliance.
Although both met and thermal markets are currently challenged,
long-term fundamentals in coal markets remain intact.
Seaborne metallurgical coal demand is expected to grow by
more than 170 million tonnes to 428 million tonnes by 2020, which
is nearly 70 percent higher than the 2011 level. At the same
time, seaborne thermal coal demand is expected to grow by 200
million tonnes, or more than 25 percent, to over 950 million tonnes
by 2020.
"In thermal markets, we believe that while the domestic market
will remain depressed for some time, international markets will
present profitable export opportunities in the future for Eastern
U.S. coals," added Whiting. "In metallurgical markets, even
with weakened global economies, current pricing remains high by
historical standards. As economies strengthen and demand
returns, we see excellent potential for met coal margin
expansion."
Outlook
For 2012, Patriot currently anticipates sales volume in the
range of 27 to 29 million tons, including met coal sales of 7.0 to
7.8 million tons. Based on this volume, the Company expects
cost per ton for the Appalachia segment to be between $72 and $78. For the Illinois Basin segment, Patriot expects cost
per ton for 2012 to be in the $42 to
$46 range. These cost estimates will be influenced by
any further modifications to planned production that occur as the
year and markets progress.
"Since the last earnings call, we sold more than 3 million tons
of metallurgical coal for 2012 delivery. About three-fourths
of these tons were Panther-type quality, resulting in an average
price of $135 per ton for new met
tons booked," concluded Schroeder. "We also sold about
700,000 tons of Illinois Basin
coal for 2012 delivery, at an average selling price of $50 per ton. And we sold about 250,000 tons
of Appalachian thermal coal for 2012 delivery, at an average
selling price of $80 per ton, of
which about half related to industrial stoker business."
Patriot aggressively sold thermal coal for 2012 delivery to
European markets throughout 2011, and expects thermal exports in
2012 of approximately 7 million tons, or nearly twice the Company's
thermal exports in 2011.
Average selling prices of currently priced tons for 2012 and
2013 are as follows:
|
|
(Tons in millions)
|
2012
|
|
2013
|
|
|
|
|
|
|
|
|
|
Tons
|
Price per
ton
|
|
Tons
|
Price per
ton
|
|
Appalachia - thermal
|
13.4
|
$ 65
|
|
5.1
|
$ 67
|
|
Illinois Basin -
thermal
|
6.6
|
$ 50
|
|
3.9
|
$ 50
|
|
Appalachia - met
|
5.3
|
$ 144
|
|
0.0
|
NA
|
|
Total
|
25.3
|
|
|
9.0
|
|
|
|
|
|
|
|
|
|
|
Conference Call
Management will hold a conference call to discuss the 2011
fourth quarter and annual results on February 2, 2012, at 10:00
a.m. Central Time. The conference call can be accessed
through the Patriot Coal website at www.patriotcoal.com or by
dialing 800-398-9386. International callers can dial
612-332-0523 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 235555.
About Patriot Coal
Patriot Coal Corporation is a leading producer and marketer of
coal in the eastern United States,
with 13 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
December 31, 2011 and 2010
|
|
|
|
|
|
|
(In thousands, except share and
per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended December 31,
|
|
|
2011
|
|
2010
|
|
|
|
|
|
|
Tons sold
|
7,643
|
|
7,720
|
|
|
|
|
|
|
Revenues
|
|
|
|
|
Sales
|
$
599,835
|
|
$
523,185
|
|
Other revenues
|
4,092
|
|
4,994
|
|
Total revenues
|
603,927
|
|
528,179
|
|
|
|
|
|
|
Costs and expenses
|
|
|
|
|
Operating costs and
expenses
|
566,166
|
|
478,842
|
|
Depreciation, depletion
and amortization
|
48,236
|
|
43,330
|
|
Asset retirement
obligation expense
|
19,653
|
|
9,893
|
|
Sales contract
accretion
|
(9,215)
|
|
(31,505)
|
|
Restructuring and
impairment charge
|
13,234
|
|
169
|
|
Selling and administrative
expenses
|
13,515
|
|
13,953
|
|
Net gain on disposal or
exchange of assets
|
(18,753)
|
|
(3,140)
|
|
Income from equity
affiliates
|
(139)
|
|
(4,293)
|
|
Operating income
(loss)
|
(28,770)
|
|
20,930
|
|
Interest expense and
other
|
9,637
|
|
16,640
|
|
Interest income
|
(75)
|
|
(3,012)
|
|
Income (loss) before
income taxes
|
(38,332)
|
|
7,302
|
|
Income tax provision
(benefit)
|
(11)
|
|
22
|
|
Net income
(loss)
|
$
(38,321)
|
|
$
7,280
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding
|
|
|
|
|
Basic
|
91,388,664
|
|
90,959,138
|
|
Effect of dilutive
securities
|
-
|
|
877,072
|
|
Diluted
|
91,388,664
|
|
91,836,210
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per share, basic
and diluted
|
$
(0.42)
|
|
$
0.08
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
$
43,138
|
|
$
42,817
|
|
|
|
|
|
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
For the Year Ended December 31,
2011 and 2010
|
|
|
|
|
|
|
(In thousands, except share and
per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
December 31,
|
|
|
2011
|
|
2010
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
Tons sold
|
31,126
|
|
30,864
|
|
|
|
|
|
|
Revenues
|
|
|
|
|
Sales
|
$ 2,378,260
|
|
$ 2,017,464
|
|
Other revenues
|
24,246
|
|
17,647
|
|
Total revenues
|
2,402,506
|
|
2,035,111
|
|
|
|
|
|
|
Costs and expenses
|
|
|
|
|
Operating costs and
expenses
|
2,213,124
|
|
1,900,704
|
|
Depreciation, depletion
and amortization
|
186,348
|
|
188,074
|
|
Asset retirement
obligation expense
|
81,586
|
|
63,034
|
|
Sales contract
accretion
|
(55,020)
|
|
(121,475)
|
|
Restructuring and
impairment charge
|
13,657
|
|
15,174
|
|
Selling and administrative
expenses
|
52,907
|
|
50,248
|
|
Net gain on disposal or
exchange of assets
|
(35,557)
|
|
(48,226)
|
|
Income from equity
affiliates
|
(4,709)
|
|
(9,476)
|
|
Operating loss
|
(49,830)
|
|
(2,946)
|
|
Interest expense and
other
|
65,533
|
|
57,419
|
|
Interest income
|
(246)
|
|
(12,831)
|
|
Loss before income
taxes
|
(115,117)
|
|
(47,534)
|
|
Income tax provision
|
372
|
|
492
|
|
Net loss
|
$ (115,489)
|
|
$
(48,026)
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding, basic and diluted
|
91,321,931
|
|
90,907,264
|
|
|
|
|
|
|
|
|
|
|
|
Loss per share, basic and
diluted
|
$
(1.26)
|
|
$
(0.53)
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
$
176,741
|
|
$
141,861
|
|
|
|
|
|
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
December 31, 2011 and 2010
|
|
|
|
|
|
|
|
|
Three Months
Ended December 31,
|
|
|
2011
|
|
2010
|
|
|
|
|
|
|
Tons Sold (In
thousands)
|
|
|
|
|
Appalachia Mining
Operations
|
5,880
|
|
6,011
|
|
Illinois Basin Mining
Operations
|
1,763
|
|
1,709
|
|
Total
|
7,643
|
|
7,720
|
|
|
|
|
|
|
Revenue Summary (Dollars in
thousands)
|
|
|
|
|
Appalachia Mining
Operations
|
$ 523,875
|
|
$ 452,201
|
|
Illinois Basin Mining
Operations
|
75,960
|
|
70,984
|
|
Appalachia Other
|
4,092
|
|
4,994
|
|
Total
|
$ 603,927
|
|
$ 528,179
|
|
|
|
|
|
|
|
|
|
|
|
Revenues per Ton - Mining
Operations
|
|
|
|
|
Appalachia
|
$ 89.09
|
|
$ 75.23
|
|
Illinois Basin
|
43.09
|
|
41.54
|
|
Total
|
78.49
|
|
67.77
|
|
|
|
|
|
|
Operating Costs per Ton - Mining
Operations (1)
|
|
|
|
|
Appalachia
|
$ 72.95
|
|
$ 59.74
|
|
Illinois Basin
|
45.16
|
|
41.48
|
|
Total
|
66.55
|
|
55.70
|
|
|
|
|
|
|
Segment Adjusted EBITDA per Ton
- Mining Operations (2)
|
|
|
|
|
Appalachia
|
$ 15.54
|
|
$ 15.49
|
|
Illinois Basin
|
(6.26)
|
|
0.06
|
|
Total
|
10.51
|
|
12.07
|
|
|
|
|
|
|
|
Dollars in
thousands
|
|
|
|
|
|
|
Third-Party Settlements
(1)(2)
|
$ 10,920
|
|
$
-
|
|
|
|
|
|
|
Past Mining Obligation
Expense
|
45,477
|
|
43,244
|
|
|
|
|
|
|
Capital
Expenditures
|
54,915
|
|
28,390
|
|
|
|
|
|
(1) Operating costs are the
direct costs of our mining operations, including income from equity
affiliates, and excluding costs for past mining obligations. In
addition, in the fourth quarter of 2011 we excluded third-party
settlements from operating costs per ton. The amount excluded from
operating costs per ton for the three months ended December 31,
2011 was $0.60 for Appalachia and $4.19 for Illinois
Basin.
|
|
|
|
(2) Segment Adjusted EBITDA
includes the third-party settlement amounts.
|
|
|
|
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 Year Ended December 31,
2011 and 2010
|
|
|
|
|
|
|
|
|
Year Ended
December 31,
|
|
|
2011
|
|
2010
|
|
|
|
|
|
|
Tons Sold (In
thousands)
|
|
|
|
|
Appalachia Mining
Operations
|
23,861
|
|
24,276
|
|
Illinois Basin Mining
Operations
|
7,265
|
|
6,588
|
|
Total
|
31,126
|
|
30,864
|
|
|
|
|
|
|
Revenue Summary (Dollars in
thousands)
|
|
|
|
|
Appalachia Mining
Operations
|
$ 2,066,639
|
|
$ 1,741,430
|
|
Illinois Basin Mining
Operations
|
311,621
|
|
276,034
|
|
Appalachia Other
|
24,246
|
|
17,647
|
|
Total
|
$ 2,402,506
|
|
$ 2,035,111
|
|
|
|
|
|
|
|
|
|
|
|
Revenues per Ton - Mining
Operations
|
|
|
|
|
Appalachia
|
$
86.61
|
|
$
71.73
|
|
Illinois Basin
|
42.89
|
|
41.90
|
|
Total
|
76.41
|
|
65.37
|
|
|
|
|
|
|
Operating Costs per Ton - Mining
Operations (1)
|
|
|
|
|
Appalachia
|
$
71.06
|
|
$
59.22
|
|
Illinois Basin
|
43.54
|
|
41.70
|
|
Total
|
64.64
|
|
55.49
|
|
|
|
|
|
|
Segment Adjusted EBITDA per Ton
- Mining Operations (2)
|
|
|
|
|
Appalachia
|
$
15.40
|
|
$
12.51
|
|
Illinois Basin
|
(1.67)
|
|
0.20
|
|
Total
|
11.42
|
|
9.88
|
|
|
|
|
|
|
|
Dollars in
thousands
|
|
|
|
|
|
|
Third-Party Settlements
(1)(2)
|
$
10,920
|
|
$
-
|
|
|
|
|
|
|
Past Mining Obligation
Expense
|
180,109
|
|
173,736
|
|
|
|
|
|
|
Capital
Expenditures
|
174,713
|
|
122,989
|
|
|
|
|
|
(1) Operating costs are the
direct costs of our mining operations, including income from equity
affiliates, and excluding costs for past mining obligations. In
addition, in the fourth quarter of 2011 we excluded third-party
settlements from operating costs per ton. The amount excluded from
operating costs per ton for the year ended December 31, 2011 was
$0.15 for Appalachia and $1.02 for Illinois Basin.
|
|
|
|
|
(2) Segment Adjusted EBITDA
includes the third-party settlement amounts.
|
|
|
|
|
This information is intended to
be reviewed in conjunction with the Company's filings with the
Securities and Exchange Commission.
|
|
|
|
Condensed Consolidated Balance
Sheets
December 31, 2011 and
2010
|
|
|
|
|
|
|
(Dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
|
2011
|
|
2010
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
194,162
|
|
$
193,067
|
|
Receivables
|
177,695
|
|
207,365
|
|
Inventories
|
98,366
|
|
97,973
|
|
Other current assets
|
28,191
|
|
28,648
|
|
Total current
assets
|
498,414
|
|
527,053
|
|
Net property, plant, equipment
and mine development
|
3,214,927
|
|
3,160,535
|
|
Notes receivable
|
-
|
|
69,540
|
|
Investments and other
assets
|
63,203
|
|
52,908
|
|
Total
assets
|
$ 3,776,544
|
|
$ 3,810,036
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable and accrued
liabilities
|
$
459,694
|
|
$
409,284
|
|
Below market sales contracts
acquired
|
44,787
|
|
70,917
|
|
Current portion of
debt
|
1,182
|
|
3,329
|
|
Total current
liabilities
|
505,663
|
|
483,530
|
|
Long-term debt, less current
maturities
|
441,064
|
|
451,529
|
|
Below market sales contracts
acquired, noncurrent
|
46,217
|
|
92,253
|
|
Other noncurrent
liabilities
|
2,117,449
|
|
1,939,643
|
|
Total
liabilities
|
3,110,393
|
|
2,966,955
|
|
Common stock, paid-in capital
and retained earnings
|
1,051,181
|
|
1,150,776
|
|
Accumulated other comprehensive
loss
|
(385,030)
|
|
(307,695)
|
|
Total
stockholders' equity
|
666,151
|
|
843,081
|
|
Total liabilities
and stockholders' equity
|
$ 3,776,544
|
|
$ 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
For the Year Ended December 31,
2011 and 2010
|
|
|
|
|
|
|
(Dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
Year Ended
December 31,
|
|
|
2011
|
|
2010
|
|
|
(Unaudited)
|
|
|
|
Cash Flows from Operating
Activities
|
|
|
|
|
Net Loss
|
$ (115,489)
|
|
$ (48,026)
|
|
Adjustments to reconcile net
loss to net cash provided by
|
|
|
|
|
operating
activities:
|
|
|
|
|
Depreciation, depletion
and amortization
|
186,348
|
|
188,074
|
|
Sales contract
accretion
|
(55,020)
|
|
(121,475)
|
|
Net gain on disposal or
exchange of assets
|
(35,557)
|
|
(48,226)
|
|
Impairment
charge
|
13,093
|
|
2,823
|
|
Changes in working capital
and other
|
131,362
|
|
63,141
|
|
Net cash provided by
operating activities
|
124,737
|
|
36,311
|
|
|
|
|
|
|
Cash Flows from Investing
Activities
|
|
|
|
|
Additions to property, plant,
equipment and mine development
|
(174,713)
|
|
(122,989)
|
|
Additions to advance mining
royalties
|
(26,030)
|
|
(21,510)
|
|
Net cash paid in litigation
settlement and asset acquisition
|
(14,787)
|
|
-
|
|
Proceeds from disposal or
exchange of assets
|
6,928
|
|
1,766
|
|
Proceeds from notes
receivable
|
115,679
|
|
33,100
|
|
Investment in joint
ventures
|
-
|
|
(300)
|
|
Net cash used in investing
activities
|
(92,923)
|
|
(109,933)
|
|
|
|
|
|
|
Cash Flows from Financing
Activities
|
|
|
|
|
Proceeds from debt offering, net
of discount
|
-
|
|
248,198
|
|
Deferred financing
costs
|
(1,832)
|
|
(20,740)
|
|
Proceeds from coal reserve
financing transaction
|
-
|
|
17,700
|
|
Long-term debt
payments
|
(31,002)
|
|
(8,042)
|
|
Proceeds from employee stock
programs
|
2,115
|
|
2,475
|
|
Net cash provided by (used
in) financing activities
|
(30,719)
|
|
239,591
|
|
|
|
|
|
|
Net increase in cash and cash
equivalents
|
1,095
|
|
165,969
|
|
Cash and cash equivalents at
beginning of period
|
193,067
|
|
27,098
|
|
Cash and cash equivalents at end
of period
|
$ 194,162
|
|
$ 193,067
|
|
|
|
|
|
This information is intended to
be reviewed in conjunction with the Company's filings with the
Securities and Exchange Commission.
|
|
|
Reconciliation of Net Income
(Loss) to Adjusted EBITDA (Unaudited)
For the Three Months and Year
Ended December 31, 2011 and 2010
|
|
|
|
|
|
|
(Dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended December 31,
|
|
Reconciliation of net income
(loss) to Adjusted EBITDA:
|
2011
|
|
2010
|
|
|
|
|
|
|
Net income (loss)
|
$ (38,321)
|
|
$ 7,280
|
|
Depreciation, depletion and
amortization
|
48,236
|
|
43,330
|
|
Asset retirement obligation
expense
|
19,653
|
|
9,893
|
|
Sales contract
accretion
|
(9,215)
|
|
(31,505)
|
|
Restructuring and impairment
charge
|
13,234
|
|
169
|
|
Interest expense and
other
|
9,637
|
|
16,640
|
|
Interest income
|
(75)
|
|
(3,012)
|
|
Income tax provision
(benefit)
|
(11)
|
|
22
|
|
Adjusted EBITDA
|
$ 43,138
|
|
$ 42,817
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
December 31,
|
|
Reconciliation of net loss to
Adjusted EBITDA:
|
2011
|
|
2010
|
|
|
|
|
|
|
Net loss
|
$ (115,489)
|
|
$ (48,026)
|
|
Depreciation, depletion and
amortization
|
186,348
|
|
188,074
|
|
Asset retirement obligation
expense
|
81,586
|
|
63,034
|
|
Sales contract
accretion
|
(55,020)
|
|
(121,475)
|
|
Restructuring and impairment
charge
|
13,657
|
|
15,174
|
|
Interest expense and
other
|
65,533
|
|
57,419
|
|
Interest income
|
(246)
|
|
(12,831)
|
|
Income tax provision
|
372
|
|
492
|
|
Adjusted EBITDA
|
$ 176,741
|
|
$ 141,861
|
|
|
|
|
|
Adjusted EBITDA, also referred
to as EBITDA, is defined as net income (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