Alpha Announces Fourth Quarter and Full Year 2022 Financial Results
- Posts net income of $220.7 million, or $13.37 per diluted share, for the quarter
- Reports fourth quarter Adjusted EBITDA of $247.9 million
- Returns roughly $517 million to shareholders through buybacks in 2022
- Returns approximately $100 million to shareholders through dividends declared in 2022
- Increases share buyback authorization to $1.2 billion from prior level of $1 billion
- Increases quarterly dividend to $0.44 from $0.418 per share
BRISTOL, Tenn., Feb. 23, 2023 /PRNewswire/ -- Alpha Metallurgical Resources, Inc. (NYSE: AMR), a leading U.S. supplier of metallurgical products for the steel industry, today reported results for the fourth quarter and full year ending December 31, 2022.
(millions, except per share) |
|||
Three months ended |
|||
Dec. 31, 2022 |
Sept. 30, 2022 |
Dec. 31, 2021 |
|
Net income |
$220.7 |
$252.8 |
$257.4 |
Net income per diluted share |
$13.37 |
$14.27 |
$13.45 |
Adjusted EBITDA(1) |
$247.9 |
$296.2 |
$318.5 |
Operating cash flow |
$185.0 |
$497.0 |
$104.3 |
Capital expenditures |
($61.0) |
($33.3) |
($22.9) |
Tons of coal sold |
3.9 |
4.1 |
4.0 |
__________________________________ 1. These are non-GAAP financial measures. A reconciliation of Net Income to Adjusted EBITDA is included in tables accompanying the financial schedules. |
"2022 was an extremely successful year for our company," said Andy Eidson, Alpha's chief executive officer. "Even with the previously-announced fourth quarter issues that prevented us from finishing as strong as we would have liked, the year as a whole brought about record performance in Adjusted EBITDA and operating cash flow as well as the successful elimination of our term loan debt. In 2022, we returned more than half a billion dollars of capital to our stockholders in the form of share repurchases and we declared another $100 million in dividends in 2022, the most recent of which we paid on January 3, 2023. Additionally, the Alpha board has approved an increase in the share repurchase authorization of $200 million to further demonstrate our commitment to our capital return program. We look forward to bringing this positive momentum into the rest of 2023."
Financial Performance
Alpha reported net income of $220.7 million, or $13.37 per diluted share, for the fourth quarter 2022. In the third quarter of 2022, the company had net income of $252.8 million, or $14.27 per diluted share.
For the fourth quarter, total Adjusted EBITDA was $247.9 million, compared to $296.2 million in the third quarter 2022.
Todd Munsey, chief financial officer, commented on the fourth quarter results: "As mentioned in our earnings pre-announcement, fourth quarter volumes were weaker than expected, largely due to challenging geology and transportation issues, both of which have continued to improve as we have worked through the first quarter of 2023."
Coal Revenues
(millions) |
||
Three months ended |
||
Dec. 31, 2022 |
Sept. 30, 2022 |
|
Met Segment |
$804.9 |
$840.6 |
All Other |
$16.3 |
$27.2 |
Met Segment (excl. freight & handling)(1) |
$699.0 |
$718.1 |
All Other (excl. freight & handling)(1) |
$16.3 |
$27.2 |
Tons Sold |
(millions) |
|
Three months ended |
||
Dec. 31, 2022 |
Sept. 30, 2022 |
|
Met Segment |
3.8 |
3.9 |
All Other |
0.1 |
0.2 |
__________________________________ 1. Represents Non-GAAP coal revenues which is defined and reconciled under "Non-GAAP Financial Measures" and "Results of Operations." |
Coal Sales Realization(1)
(per ton) |
||
Three months ended |
||
Dec. 31, 2022 |
Sept. 30, 2022 |
|
Met Segment |
$186.29 |
$184.31 |
All Other |
$126.10 |
$109.27 |
__________________________________ 1. Represents Non-GAAP coal sales realization which is defined and reconciled under "Non-GAAP Financial Measures" and "Results |
Fourth quarter net realized pricing for the Met segment was $186.29 per ton and net realization in the All Other category was $126.10.
The table below provides a breakdown of our Met segment coal sold in the fourth quarter by pricing mechanism.
(in millions, except per ton data) |
||||
Met Segment Sales |
Three months ended Dec. 31, 2022 |
|||
Tons Sold |
Coal Revenues |
Realization/ton(1) |
% of Met Tons |
|
Export - Other Pricing Mechanisms |
1.1 |
$218.3 |
$196.88 |
33 % |
Domestic |
0.9 |
$170.2 |
$195.01 |
26 % |
Export - Australian Indexed |
1.4 |
$253.4 |
$183.59 |
41 % |
Total Met Coal Revenues |
3.4 |
$641.9 |
$190.94 |
100 % |
Thermal Coal Revenues |
0.4 |
$57.0 |
$146.24 |
|
Total Met Segment Coal Revenues (excl. freight & handling)(1) |
3.8 |
$698.9 |
$186.29 |
|
__________________________________ 1. Represents Non-GAAP coal sales realization which is defined and reconciled under "Non-GAAP Financial Measures" and "Results |
||||
Cost of Coal Sales
(in millions, except per ton data) |
||
Three months ended |
||
Dec. 31, 2022 |
Sept. 30, 2022 |
|
Cost of Coal Sales |
$549.1 |
$554.1 |
Cost of Coal Sales (excl. freight & handling/idle)(1) |
$434.3 |
$425.4 |
(per ton) |
||
Met Segment(1) |
$112.97 |
$104.86 |
All Other(1) |
$80.76 |
$67.48 |
| __________________________________ 1. Represents Non-GAAP cost of coal sales and Non-GAAP cost of coal sales per ton which is defined and reconciled under "Non- |
Alpha's fourth quarter Met segment cost of coal sales increased to an average of $112.97 per ton. Third quarter cost of coal sales for the Met segment was $104.86. Cost of coal sales for the All Other category increased to $80.76 per ton in the fourth quarter 2022 against an average cost of $67.48 per ton in the third quarter 2022. The higher costs in fourth quarter were attributable to operational challenges and approximately $2.00 per ton of discretionary incentive compensation to our employees.
Liquidity and Capital Resources
Cash provided by operating activities in the fourth quarter decreased to $185.0 million as compared to $497.0 million in the third quarter 2022. Third quarter 2022 operating cash flow included an approximate $235 million reduction in accounts receivable as a result of coal indices softening from historical highs reached earlier in the year. In addition, the fourth quarter operating cash was reduced by a reclass to deposits of approximately $85 million related to the previously announced quarterly and special dividend. Capital expenditures for the fourth quarter 2022 were $61.0 million compared to $33.3 million for the third quarter of 2022.
As of December 31, 2022, the company had total liquidity of $441.1 million, including cash and cash equivalents of $301.9 million, short-term investments of $46.1 million, and $93.1 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 December 31, 2022, the company had no borrowings and $61.9 million in letters of credit outstanding under the ABL. Total long-term debt, including the current portion of long-term debt as of December 31, 2022, was $11 million.
Dividend Program
On February 21, 2023, Alpha's board of directors declared a quarterly cash dividend payment of $0.44 per share, increased from the prior quarter's dividend of $0.418 per share, which will become payable on April 3, 2023 for holders of record as of March 15, 2023.
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
In 2022, Alpha's board of directors authorized a share repurchase program allowing for the expenditure of up to $1 billion for the repurchase of the company's common stock. On February 21, 2023, Alpha's board increased this authorization by $200 million, bringing the total authorization of the share repurchase program to $1.2 billion. As of January 31, 2023, the company has acquired approximately 3.8 million shares of common stock at a cost of approximately $560 million. The number of common stock shares outstanding as of January 31, 2023 was 15,326,644, not including the potentially dilutive effect of unexercised warrant shares or unvested equity awards.
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.
Operational and Performance Update
During the fourth quarter, in our continuing efforts to secure in-demand supplies and services, our subsidiary Maxxim Rebuild Co., LLC ("Maxxim") purchased certain assets of Industrial Plating and Machine, Inc., which manufactures essential mining equipment components, including gear cases. In addition, in January 2023, Maxxim completed a series of transactions to acquire a number of coal trucks and related equipment and facilities.
As of February 14, 2023, Alpha has committed and priced approximately 38% of its metallurgical coal within the Met segment at an average price of $195.89 per ton and 52% of thermal coal in the Met segment at an average expected price of $119.79 per ton. In the All Other category the company is 97% committed and priced at an average price of $94.08 per ton.
2023 Guidance |
||
in millions of tons |
Low |
High |
Metallurgical |
15.0 |
16.0 |
Thermal |
1.4 |
1.8 |
Met Segment |
16.4 |
17.8 |
All Other |
0.3 |
0.6 |
Total Shipments |
16.7 |
18.4 |
Committed/Priced1,2,3 |
Committed |
Average Price |
Metallurgical - Domestic |
$193.17 |
|
Metallurgical - Export |
$207.66 |
|
Metallurgical Total |
38 % |
$195.89 |
Thermal |
52 % |
$119.79 |
Met Segment |
39 % |
$186.39 |
All Other |
97 % |
$94.08 |
Committed/Unpriced1,3 |
Committed |
|
Metallurgical Total |
38 % |
|
Thermal |
— % |
|
Met Segment |
34 % |
|
All Other |
— % |
|
Costs per ton4 |
Low |
High |
Met Segment |
$106.00 |
$112.00 |
All Other |
$87.00 |
$93.00 |
In millions (except taxes) |
Low |
High |
SG&A5 |
$59 |
$65 |
Idle Operations Expense |
$21 |
$31 |
Cash Interest Expense |
$2 |
$10 |
DD&A |
$115 |
$135 |
Capital Expenditures |
$250 |
$280 |
Tax Rate |
15 % |
20 % |
Notes: |
|
1. |
Based on committed and priced coal shipments as of February 14, 2023. 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. |
Additionally, the board of directors has scheduled the company's annual meeting of stockholders for May 3, 2023.
Conference Call
The company plans to hold a conference call regarding its fourth quarter and full year 2022 results on February 23, 2023, 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
[email protected]
[email protected]
(423) 573-0369
FINANCIAL TABLES FOLLOW
Non-GAAP Financial Measures
The discussion below contains "non-GAAP financial measures." These are financial measures that 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 |
|||||||
Three Months Ended December 31, |
Year Ended December 31, |
||||||
2022 |
2021 |
2022 |
2021 |
||||
Revenues: |
|||||||
Coal revenues |
$ 821,142 |
$ 826,558 |
$ 4,092,987 |
$ 2,252,624 |
|||
Other revenues |
2,306 |
1,658 |
8,605 |
6,062 |
|||
Total revenues |
823,448 |
828,216 |
4,101,592 |
2,258,686 |
|||
Costs and expenses: |
|||||||
Cost of coal sales (exclusive of items |
549,143 |
494,554 |
2,285,969 |
1,677,782 |
|||
Depreciation, depletion and amortization |
23,930 |
29,786 |
107,620 |
110,047 |
|||
Accretion on asset retirement obligations |
5,943 |
6,550 |
23,765 |
26,520 |
|||
Amortization of acquired intangibles, net |
3,460 |
3,842 |
19,498 |
13,244 |
|||
Asset impairment and restructuring |
— |
— |
— |
(561) |
|||
Selling, general and administrative |
23,279 |
19,010 |
71,618 |
63,901 |
|||
Total other operating loss (income): |
|||||||
Mark-to-market adjustment for |
(1,735) |
1,516 |
8,880 |
19,525 |
|||
Other expense (income) |
2,794 |
(5,682) |
3,363 |
(10,972) |
|||
Total costs and expenses |
606,814 |
549,576 |
2,520,713 |
1,899,486 |
|||
Income from operations |
216,634 |
278,640 |
1,580,879 |
359,200 |
|||
Other (expense) income: |
|||||||
Interest expense |
(1,747) |
(16,364) |
(21,802) |
(69,654) |
|||
Interest income |
1,775 |
13 |
3,187 |
336 |
|||
Equity loss in affiliates |
(6,028) |
(2,988) |
(14,346) |
(4,149) |
|||
Miscellaneous income, net |
2,298 |
1,341 |
6,832 |
6,465 |
|||
Total other expense, net |
(3,702) |
(17,998) |
(26,129) |
(67,002) |
|||
Income before income taxes |
212,932 |
260,642 |
1,554,750 |
292,198 |
|||
Income tax benefit (expense) |
7,748 |
(3,197) |
(106,205) |
(3,408) |
|||
Net income |
$ 220,680 |
$ 257,445 |
$ 1,448,545 |
$ 288,790 |
|||
Basic income per common share |
$ 13.86 |
$ 13.93 |
$ 82.82 |
$ 15.66 |
|||
Diluted income per common share: |
$ 13.37 |
$ 13.45 |
$ 79.49 |
$ 15.30 |
|||
Weighted average shares - basic |
15,923,288 |
18,484,309 |
17,490,886 |
18,441,175 |
|||
Weighted average shares - diluted |
16,504,793 |
19,135,326 |
18,222,397 |
18,871,682 |
|||
ALPHA METALLURGICAL RESOURCES, INC. AND SUBSIDIARIES |
|||
December 31, 2022 |
December 31, 2021 |
||
Assets |
|||
Current assets: |
|||
Cash and cash equivalents |
$ 301,906 |
$ 81,211 |
|
Short-term investments |
46,052 |
— |
|
Trade accounts receivable, net of allowance for doubtful accounts of $239 and $393 as |
407,210 |
489,241 |
|
Inventories, net |
200,574 |
129,382 |
|
Short-term deposits |
84,748 |
425 |
|
Short-term restricted cash |
24,547 |
11,977 |
|
Prepaid expenses and other current assets |
49,384 |
35,750 |
|
Total current assets |
1,114,421 |
747,986 |
|
Property, plant, and equipment, net of accumulated depreciation and amortization of |
442,645 |
362,218 |
|
Owned and leased mineral rights, net of accumulated depletion and amortization of |
451,062 |
444,302 |
|
Other acquired intangibles, net of accumulated amortization of $53,719 and $34,221 as |
55,102 |
74,197 |
|
Long-term restricted investments |
105,735 |
30,949 |
|
Long-term restricted cash |
28,941 |
89,426 |
|
Deferred income taxes |
11,378 |
— |
|
Other non-current assets |
103,195 |
108,634 |
|
Total assets |
$ 2,312,479 |
$ 1,857,712 |
|
Liabilities and Stockholders' Equity |
|||
Current liabilities: |
|||
Current portion of long-term debt |
$ 3,078 |
$ 2,989 |
|
Trade accounts payable |
106,037 |
90,093 |
|
Acquisition-related obligations - current |
28,254 |
22,405 |
|
Accrued expenses and other current liabilities |
265,256 |
180,442 |
|
Total current liabilities |
402,625 |
295,929 |
|
Long-term debt |
7,897 |
445,562 |
|
Acquisition-related obligations - long-term |
— |
19,000 |
|
Workers' compensation and black lung obligations |
188,247 |
231,876 |
|
Pension obligations |
110,836 |
159,930 |
|
Asset retirement obligations |
142,048 |
132,013 |
|
Deferred income taxes |
10,874 |
317 |
|
Other non-current liabilities |
20,197 |
26,176 |
|
Total liabilities |
882,724 |
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, 21.7 million issued |
217 |
208 |
|
Additional paid-in capital |
815,442 |
784,743 |
|
Accumulated other comprehensive loss |
(12,162) |
(58,503) |
|
Treasury stock, at cost: 6.2 million shares at December 31, 2022 and 2.4 million shares |
(649,061) |
(107,800) |
|
Retained earnings (accumulated deficit) |
1,275,319 |
(71,739) |
|
Total stockholders' equity |
1,429,755 |
546,909 |
|
Total liabilities and stockholders' equity |
$ 2,312,479 |
$ 1,857,712 |
|
ALPHA METALLURGICAL RESOURCES, INC. AND SUBSIDIARIES |
|||
Year Ended December 31, |
|||
2022 |
2021 |
||
Operating activities: |
|||
Net income |
$ 1,448,545 |
$ 288,790 |
|
Adjustments to reconcile net income to net cash provided by operating |
|||
Depreciation, depletion and amortization |
107,620 |
110,047 |
|
Amortization of acquired intangibles, net |
19,498 |
13,244 |
|
Accretion of acquisition-related obligations discount |
233 |
1,258 |
|
Amortization of debt issuance costs and accretion of debt discount |
8,282 |
12,338 |
|
Mark-to-market adjustment for acquisition-related obligations |
8,880 |
19,525 |
|
Loss (gain) on disposal of assets, net |
43 |
(9,911) |
|
Accretion on asset retirement obligations |
23,765 |
26,520 |
|
Employee benefit plans, net |
(4,492) |
(1,751) |
|
Deferred income taxes |
(14,521) |
(163) |
|
Asset impairment and restructuring |
— |
(561) |
|
Stock-based compensation |
7,484 |
5,315 |
|
Equity loss in affiliates |
14,346 |
4,149 |
|
Other, net |
(994) |
(6,570) |
|
Changes in operating assets and liabilities |
|||
Trade accounts receivable, net |
82,774 |
(336,240) |
|
Inventories, net |
(63,169) |
(21,331) |
|
Prepaid expenses and other current assets |
(12,031) |
61,581 |
|
Deposits |
(84,314) |
26,853 |
|
Other non-current assets |
11,268 |
(250) |
|
Trade accounts payable |
3,721 |
25,154 |
|
Accrued expenses and other current liabilities |
(6,872) |
15,961 |
|
Acquisition-related obligations |
(22,264) |
(18,121) |
|
Asset retirement obligations |
(18,699) |
(16,306) |
|
Other non-current liabilities |
(25,098) |
(24,588) |
|
Net cash provided by operating activities |
1,484,005 |
174,943 |
|
Investing activities: |
|||
Capital expenditures |
(164,309) |
(83,300) |
|
Proceeds on disposal of assets |
3,623 |
8,224 |
|
Cash paid for business acquired |
(24,878) |
— |
|
Capital contributions to equity affiliates |
(19,556) |
(6,677) |
|
Purchases of investment securities |
(269,420) |
(17,985) |
|
Maturity of investment securities |
149,397 |
13,265 |
|
Other, net |
(4,214) |
(3,382) |
|
Net cash used in investing activities |
(329,357) |
(89,855) |
|
Financing activities: |
|||
Repurchases of long-term debt |
— |
(18,415) |
|
Principal repayments of long-term debt |
(450,622) |
(119,097) |
|
Dividend and dividend equivalents paid |
(13,360) |
— |
|
Common stock repurchases and related expenses |
(521,803) |
(786) |
|
Proceeds from exercise of warrants |
5,643 |
— |
|
Other, net |
(1,726) |
(8,747) |
|
Net cash used in financing activities |
(981,868) |
(147,045) |
|
Net increase (decrease) in cash and cash equivalents and restricted cash |
172,780 |
(61,957) |
|
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 |
$ 355,394 |
$ 182,614 |
|
Supplemental cash flow information: |
|||
Cash paid for interest |
$ 25,895 |
$ 63,061 |
|
Cash paid for income taxes |
$ 139,663 |
$ 176 |
|
Cash received for income tax refunds |
$ 6 |
$ 64,498 |
|
Supplemental disclosure of noncash investing and financing activities: |
|||
Financing leases and capital financing - equipment |
$ 9,833 |
$ 787 |
|
Accrued capital expenditures |
$ 18,456 |
$ 9,964 |
|
Accrued common stock repurchases |
$ 3,016 |
$ — |
|
Accrued dividend payable |
$ 88,128 |
$ — |
|
The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the Consolidated Balance Sheets that sum to the total of the same such amounts shown in the Consolidated Statements of Cash Flows.
As of December 31, |
|||
2022 |
2021 |
||
Cash and cash equivalents |
$ 301,906 |
$ 81,211 |
|
Short-term restricted cash |
24,547 |
11,977 |
|
Long-term restricted cash |
28,941 |
89,426 |
|
Total cash and cash equivalents and restricted cash shown in the |
$ 355,394 |
$ 182,614 |
|
ALPHA METALLURGICAL RESOURCES, INC. AND SUBSIDIARIES |
|||||||||
Three Months Ended |
Year Ended December 31, |
||||||||
December 31, 2022 |
September 30, 2022 |
December 31, 2021 |
2022 |
2021 |
|||||
Net income |
$ 220,680 |
$ 252,817 |
$ 257,445 |
$ 1,448,545 |
$ 288,790 |
||||
Interest expense |
1,747 |
1,754 |
16,364 |
21,802 |
69,654 |
||||
Interest income |
(1,775) |
(1,059) |
(13) |
(3,187) |
(336) |
||||
Income tax (benefit) expense |
(7,748) |
5,730 |
3,197 |
106,205 |
3,408 |
||||
Depreciation, depletion and |
23,930 |
27,925 |
29,786 |
107,620 |
110,047 |
||||
Non-cash stock compensation |
3,381 |
1,520 |
964 |
7,484 |
5,315 |
||||
Mark-to-market adjustment - |
(1,735) |
(2,954) |
1,516 |
8,880 |
19,525 |
||||
Gain on settlement of acquisition- |
— |
— |
(1,125) |
— |
(1,125) |
||||
Accretion on asset retirement obligations |
5,943 |
5,921 |
6,550 |
23,765 |
26,520 |
||||
Asset impairment and restructuring |
— |
— |
— |
— |
(561) |
||||
Amortization of acquired |
3,460 |
4,543 |
3,842 |
19,498 |
13,244 |
||||
Adjusted EBITDA |
$ 247,883 |
$ 296,197 |
$ 318,526 |
$ 1,740,612 |
$ 534,481 |
||||
ALPHA METALLURGICAL RESOURCES, INC. AND SUBSIDIARIES |
|||||
Three Months Ended December 31, 2022 |
|||||
(In thousands, except for per ton data) |
Met |
All Other |
Consolidated |
||
Coal revenues |
$ 804,876 |
$ 16,266 |
$ 821,142 |
||
Less: Freight and handling fulfillment revenues |
(105,911) |
1 |
(105,910) |
||
Non-GAAP Coal revenues |
$ 698,965 |
$ 16,267 |
$ 715,232 |
||
Tons sold |
3,752 |
129 |
3,881 |
||
Non-GAAP Coal sales realization per ton |
$ 186.29 |
$ 126.10 |
$ 184.29 |
||
Cost of coal sales (exclusive of items shown separately below) |
$ 541,547 |
$ 7,596 |
$ 549,143 |
||
Depreciation, depletion and amortization - production (1) |
19,575 |
4,083 |
23,658 |
||
Accretion on asset retirement obligations |
3,412 |
2,531 |
5,943 |
||
Amortization of acquired intangibles, net |
2,517 |
943 |
3,460 |
||
Total Cost of coal sales |
$ 567,051 |
$ 15,153 |
$ 582,204 |
||
Less: Freight and handling costs |
(105,911) |
1 |
(105,910) |
||
Less: Depreciation, depletion and amortization - production (1) |
(19,575) |
(4,083) |
(23,658) |
||
Less: Accretion on asset retirement obligations |
(3,412) |
(2,531) |
(5,943) |
||
Less: Amortization of acquired intangibles, net |
(2,517) |
(943) |
(3,460) |
||
Less: Idled and closed mine costs |
(11,754) |
2,821 |
(8,933) |
||
Non-GAAP Cost of coal sales |
$ 423,882 |
$ 10,418 |
$ 434,300 |
||
Tons sold |
3,752 |
129 |
3,881 |
||
Non-GAAP Cost of coal sales per ton |
$ 112.97 |
$ 80.76 |
$ 111.90 |
||
(1) Depreciation, depletion and amortization - production excludes the depreciation, depletion and amortization related to |
Three Months Ended December 31, 2022 |
|||||
(In thousands, except for per ton data) |
Met |
All Other |
Consolidated |
||
Coal revenues |
$ 804,876 |
$ 16,266 |
$ 821,142 |
||
Less: Total Cost of coal sales (per table above) |
(567,051) |
(15,153) |
(582,204) |
||
GAAP Coal margin |
$ 237,825 |
$ 1,113 |
$ 238,938 |
||
Tons sold |
3,752 |
129 |
3,881 |
||
GAAP Coal margin per ton |
$ 63.39 |
$ 8.63 |
$ 61.57 |
||
GAAP Coal margin |
$ 237,825 |
$ 1,113 |
$ 238,938 |
||
Add: Depreciation, depletion and amortization - production (1) |
19,575 |
4,083 |
23,658 |
||
Add: Accretion on asset retirement obligations |
3,412 |
2,531 |
5,943 |
||
Add: Amortization of acquired intangibles, net |
2,517 |
943 |
3,460 |
||
Add: Idled and closed mine costs |
11,754 |
(2,821) |
8,933 |
||
Non-GAAP Coal margin |
$ 275,083 |
$ 5,849 |
$ 280,932 |
||
Tons sold |
3,752 |
129 |
3,881 |
||
Non-GAAP Coal margin per ton |
$ 73.32 |
$ 45.34 |
$ 72.39 |
||
(1) Depreciation, depletion and amortization - production excludes the depreciation, depletion and amortization related to |
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 |
$ 19,337 |
$ 554,055 |
||
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 |
$ 23,726 |
$ 592,172 |
||
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) |
(2,531) |
(6,111) |
||
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 |
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) |
(23,726) |
(592,172) |
||
GAAP Coal margin |
$ 272,192 |
$ 3,485 |
$ 275,677 |
||
Tons sold |
3,896 |
249 |
4,145 |
||
GAAP Coal margin per ton |
$ 69.86 |
$ 14.00 |
$ 66.51 |
||
GAAP Coal margin |
$ 272,192 |
$ 3,485 |
$ 275,677 |
||
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 |
2,531 |
6,111 |
||
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 |
Three Months Ended December 31, 2021 |
|||||
(In thousands, except for per ton data) |
Met |
All Other |
Consolidated |
||
Coal revenues |
$ 811,528 |
$ 15,030 |
$ 826,558 |
||
Less: Freight and handling fulfillment revenues |
(127,925) |
(16) |
(127,941) |
||
Non-GAAP Coal revenues |
$ 683,603 |
$ 15,014 |
$ 698,617 |
||
Tons sold |
3,784 |
240 |
4,024 |
||
Non-GAAP Coal sales realization per ton |
$ 180.66 |
$ 62.56 |
$ 173.61 |
||
Cost of coal sales (exclusive of items shown separately below) |
$ 481,317 |
$ 13,237 |
$ 494,554 |
||
Depreciation, depletion and amortization - production (1) |
24,560 |
5,041 |
29,601 |
||
Accretion on asset retirement obligations |
3,401 |
3,149 |
6,550 |
||
Amortization of acquired intangibles, net |
3,922 |
(80) |
3,842 |
||
Total Cost of coal sales |
$ 513,200 |
$ 21,347 |
$ 534,547 |
||
Less: Freight and handling costs |
(127,925) |
(16) |
(127,941) |
||
Less: Depreciation, depletion and amortization - production (1) |
(24,560) |
(5,041) |
(29,601) |
||
Less: Accretion on asset retirement obligations |
(3,401) |
(3,149) |
(6,550) |
||
Less: Amortization of acquired intangibles, net |
(3,922) |
80 |
(3,842) |
||
Less: Idled and closed mine costs |
(3,533) |
1,363 |
(2,170) |
||
Non-GAAP Cost of coal sales |
$ 349,859 |
$ 14,584 |
$ 364,443 |
||
Tons sold |
3,784 |
240 |
4,024 |
||
Non-GAAP Cost of coal sales per ton |
$ 92.46 |
$ 60.77 |
$ 90.57 |
||
(1) Depreciation, depletion and amortization - production excludes the depreciation, depletion and amortization related to |
Three Months Ended December 31, 2021 |
|||||
(In thousands, except for per ton data) |
Met |
All Other |
Consolidated |
||
Coal revenues |
$ 811,528 |
$ 15,030 |
$ 826,558 |
||
Less: Total Cost of coal sales (per table above) |
(513,200) |
(21,347) |
(534,547) |
||
GAAP Coal margin |
$ 298,328 |
$ (6,317) |
$ 292,011 |
||
Tons sold |
3,784 |
240 |
4,024 |
||
GAAP Coal margin per ton |
$ 78.84 |
$ (26.32) |
$ 72.57 |
||
GAAP Coal margin |
$ 298,328 |
$ (6,317) |
$ 292,011 |
||
Add: Depreciation, depletion and amortization - production (1) |
24,560 |
5,041 |
29,601 |
||
Add: Accretion on asset retirement obligations |
3,401 |
3,149 |
6,550 |
||
Add: Amortization of acquired intangibles, net |
3,922 |
(80) |
3,842 |
||
Add: Idled and closed mine costs |
3,533 |
(1,363) |
2,170 |
||
Non-GAAP Coal margin |
$ 333,744 |
$ 430 |
$ 334,174 |
||
Tons sold |
3,784 |
240 |
4,024 |
||
Non-GAAP Coal margin per ton |
$ 88.20 |
$ 1.79 |
$ 83.05 |
||
(1) Depreciation, depletion and amortization - production excludes the depreciation, depletion and amortization related to |
Year Ended December 31, 2022 |
|||||
(In thousands, except for per ton data) |
Met |
All Other |
Consolidated |
||
Coal revenues |
$ 4,018,515 |
$ 74,472 |
$ 4,092,987 |
||
Less: Freight and handling fulfillment revenues |
(529,043) |
(20) |
(529,063) |
||
Non-GAAP Coal revenues |
$ 3,489,472 |
$ 74,452 |
$ 3,563,924 |
||
Tons sold |
15,478 |
900 |
16,378 |
||
Non-GAAP Coal sales realization per ton |
$ 225.45 |
$ 82.72 |
$ 217.60 |
||
Cost of coal sales (exclusive of items shown separately below) |
$ 2,225,771 |
$ 60,198 |
$ 2,285,969 |
||
Depreciation, depletion and amortization - production (1) |
100,584 |
6,036 |
106,620 |
||
Accretion on asset retirement obligations |
13,590 |
10,175 |
23,765 |
||
Amortization of acquired intangibles, net |
15,699 |
3,799 |
19,498 |
||
Total Cost of coal sales |
$ 2,355,644 |
$ 80,208 |
$ 2,435,852 |
||
Less: Freight and handling costs |
(529,043) |
(20) |
(529,063) |
||
Less: Depreciation, depletion and amortization - production (1) |
(100,584) |
(6,036) |
(106,620) |
||
Less: Accretion on asset retirement obligations |
(13,590) |
(10,175) |
(23,765) |
||
Less: Amortization of acquired intangibles, net |
(15,699) |
(3,799) |
(19,498) |
||
Less: Idled and closed mine costs |
(21,646) |
(6,911) |
(28,557) |
||
Non-GAAP Cost of coal sales |
$ 1,675,082 |
$ 53,267 |
$ 1,728,349 |
||
Tons sold |
15,478 |
900 |
16,378 |
||
Non-GAAP Cost of coal sales per ton |
$ 108.22 |
$ 59.19 |
$ 105.53 |
||
(1) Depreciation, depletion and amortization - production excludes the depreciation, depletion and amortization related to |
Year Ended December 31, 2022 |
|||||
(In thousands, except for per ton data) |
Met |
All Other |
Consolidated |
||
Coal revenues |
$ 4,018,515 |
$ 74,472 |
$ 4,092,987 |
||
Less: Total Cost of coal sales (per table above) |
(2,355,644) |
(80,208) |
(2,435,852) |
||
GAAP Coal margin |
$ 1,662,871 |
$ (5,736) |
$ 1,657,135 |
||
Tons sold |
15,478 |
900 |
16,378 |
||
GAAP Coal margin per ton |
$ 107.43 |
$ (6.37) |
$ 101.18 |
||
GAAP Coal margin |
$ 1,662,871 |
$ (5,736) |
$ 1,657,135 |
||
Add: Depreciation, depletion and amortization - production (1) |
100,584 |
6,036 |
106,620 |
||
Add: Accretion on asset retirement obligations |
13,590 |
10,175 |
23,765 |
||
Add: Amortization of acquired intangibles, net |
15,699 |
3,799 |
19,498 |
||
Add: Idled and closed mine costs |
21,646 |
6,911 |
28,557 |
||
Non-GAAP Coal margin |
$ 1,814,390 |
$ 21,185 |
$ 1,835,575 |
||
Tons sold |
15,478 |
900 |
16,378 |
||
Non-GAAP Coal margin per ton |
$ 117.22 |
$ 23.54 |
$ 112.08 |
||
(1) Depreciation, depletion and amortization - production excludes the depreciation, depletion and amortization related to |
Year Ended December 31, 2021 |
|||||
(In thousands, except for per ton data) |
Met |
All Other |
Consolidated |
||
Coal revenues |
$ 2,173,647 |
$ 78,977 |
$ 2,252,624 |
||
Less: Freight and handling fulfillment revenues |
(380,457) |
(520) |
(380,977) |
||
Non-GAAP Coal revenues |
$ 1,793,190 |
$ 78,457 |
$ 1,871,647 |
||
Tons sold |
15,569 |
1,270 |
16,839 |
||
Non-GAAP Coal sales realization per ton |
$ 115.18 |
$ 61.78 |
$ 111.15 |
||
Cost of coal sales (exclusive of items shown separately below) |
$ 1,607,157 |
$ 70,625 |
$ 1,677,782 |
||
Depreciation, depletion and amortization - production (1) |
99,963 |
9,362 |
109,325 |
||
Accretion on asset retirement obligations |
13,571 |
12,949 |
26,520 |
||
Amortization of acquired intangibles, net |
13,671 |
(427) |
13,244 |
||
Total Cost of coal sales |
$ 1,734,362 |
$ 92,509 |
$ 1,826,871 |
||
Less: Freight and handling costs |
(380,457) |
(520) |
(380,977) |
||
Less: Depreciation, depletion and amortization - production (1) |
(99,963) |
(9,362) |
(109,325) |
||
Less: Accretion on asset retirement obligations |
(13,571) |
(12,949) |
(26,520) |
||
Less: Amortization of acquired intangibles, net |
(13,671) |
427 |
(13,244) |
||
Less: Idled and closed mine costs |
(16,858) |
(9,720) |
(26,578) |
||
Non-GAAP Cost of coal sales |
$ 1,209,842 |
$ 60,385 |
$ 1,270,227 |
||
Tons sold |
15,569 |
1,270 |
16,839 |
||
Non-GAAP Cost of coal sales per ton |
$ 77.71 |
$ 47.55 |
$ 75.43 |
||
(1) Depreciation, depletion and amortization - production excludes the depreciation, depletion and amortization related to |
Year Ended December 31, 2021 |
|||||
(In thousands, except for per ton data) |
Met |
All Other |
Consolidated |
||
Coal revenues |
$ 2,173,647 |
$ 78,977 |
$ 2,252,624 |
||
Less: Total Cost of coal sales (per table above) |
(1,734,362) |
(92,509) |
(1,826,871) |
||
GAAP Coal margin |
$ 439,285 |
$ (13,532) |
$ 425,753 |
||
Tons sold |
15,569 |
1,270 |
16,839 |
||
GAAP Coal margin per ton |
$ 28.22 |
$ (10.66) |
$ 25.28 |
||
GAAP Coal margin |
$ 439,285 |
$ (13,532) |
$ 425,753 |
||
Add: Depreciation, depletion and amortization - production (1) |
99,963 |
9,362 |
109,325 |
||
Add: Accretion on asset retirement obligations |
13,571 |
12,949 |
26,520 |
||
Add: Amortization of acquired intangibles, net |
13,671 |
(427) |
13,244 |
||
Add: Idled and closed mine costs |
16,858 |
9,720 |
26,578 |
||
Non-GAAP Coal margin |
$ 583,348 |
$ 18,072 |
$ 601,420 |
||
Tons sold |
15,569 |
1,270 |
16,839 |
||
Non-GAAP Coal margin per ton |
$ 37.47 |
$ 14.23 |
$ 35.72 |
||
(1) Depreciation, depletion and amortization - production excludes the depreciation, depletion and amortization related to |
Three Months Ended December 31, 2022 |
|||||
(In thousands, except for per ton data) |
Met |
All Other |
Consolidated |
||
Non-GAAP Cost of coal sales |
$ 423,882 |
$ 10,418 |
$ 434,300 |
||
Less: cost of purchased coal sold |
(37,238) |
— |
(37,238) |
||
Adjusted cost of produced coal sold |
$ 386,644 |
$ 10,418 |
$ 397,062 |
||
Produced tons sold |
3,561 |
130 |
3,691 |
||
Adjusted cost of produced coal sold per ton (1) |
$ 108.58 |
$ 80.14 |
$ 107.58 |
||
(1) Cost of produced coal sold per ton for our operations is calculated as non-GAAP cost of produced coal sold divided by |
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 |
Three Months Ended December 31, 2021 |
|||||
(In thousands, except for per ton data) |
Met |
All Other |
Consolidated |
||
Non-GAAP Cost of coal sales |
$ 349,859 |
$ 14,584 |
$ 364,443 |
||
Less: cost of purchased coal sold |
(22,798) |
(660) |
(23,458) |
||
Adjusted cost of produced coal sold |
$ 327,061 |
$ 13,924 |
$ 340,985 |
||
Produced tons sold |
3,610 |
235 |
3,845 |
||
Adjusted cost of produced coal sold per ton (1) |
$ 90.60 |
$ 59.25 |
$ 88.68 |
||
(1) Cost of produced coal sold per ton for our operations is calculated as non-GAAP cost of produced coal sold divided by |
Year Ended December 31, 2022 |
|||||
(In thousands, except for per ton data) |
Met |
All Other |
Consolidated |
||
Non-GAAP Cost of coal sales |
$ 1,675,082 |
$ 53,267 |
$ 1,728,349 |
||
Less: cost of purchased coal sold |
(119,473) |
(37) |
(119,510) |
||
Adjusted cost of produced coal sold |
$ 1,555,609 |
$ 53,230 |
$ 1,608,839 |
||
Produced tons sold |
14,938 |
900 |
15,838 |
||
Adjusted cost of produced coal sold per ton (1) |
$ 104.14 |
$ 59.14 |
$ 101.58 |
||
(1) Cost of produced coal sold per ton for our operations is calculated as non-GAAP cost of produced coal sold divided by |
Year Ended December 31, 2021 |
|||||
(In thousands, except for per ton data) |
Met |
All Other |
Consolidated |
||
Non-GAAP Cost of coal sales |
$ 1,209,842 |
$ 60,385 |
$ 1,270,227 |
||
Less: cost of purchased coal sold |
(97,872) |
(660) |
(98,532) |
||
Adjusted cost of produced coal sold |
$ 1,111,970 |
$ 59,725 |
$ 1,171,695 |
||
Produced tons sold |
14,638 |
1,265 |
15,903 |
||
Adjusted cost of produced coal sold per ton (1) |
$ 75.96 |
$ 47.21 |
$ 73.68 |
||
(1) Cost of produced coal sold per ton for our operations is calculated as non-GAAP cost of produced coal sold divided by |
Three Months Ended December 31, 2022 |
|||||||
(In thousands, except for per ton data) |
Tons Sold |
Coal Revenues |
Non-GAAP |
% of Met Tons |
|||
Export - other pricing mechanisms |
1,109 |
$ 218,337 |
$ 196.88 |
33 % |
|||
Domestic |
873 |
170,240 |
$ 195.01 |
26 % |
|||
Export - Australian indexed |
1,380 |
253,355 |
$ 183.59 |
41 % |
|||
Total Met segment - met coal |
3,362 |
$ 641,932 |
$ 190.94 |
100 % |
|||
Met segment - thermal coal |
390 |
57,033 |
$ 146.24 |
||||
Total Met segment Coal revenues |
3,752 |
698,965 |
$ 186.29 |
||||
All Other Coal revenues |
129 |
16,267 |
$ 126.10 |
||||
Non-GAAP Coal revenues |
3,881 |
$ 715,232 |
$ 184.29 |
||||
Add: Freight and handling fulfillment revenues |
— |
105,910 |
|||||
Coal revenues |
3,881 |
$ 821,142 |
|||||
SOURCE Alpha Metallurgical Resources, Inc.
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