COLUMBUS, Ohio, Nov. 5, 2013 /PRNewswire/ -- Oxford Resource
Partners, LP (NYSE: OXF) (the "Partnership" or "Oxford") today
announced third quarter 2013 financial results.
Adjusted EBITDA1 was $11.0
million for the third quarter of 2013 compared to
$14.2 million for the third quarter
of 2012. Adjusted EBITDA declined due to the planned lower
sales volume from the Partnership's Illinois Basin operations. Production
was approximately 40,000 tons less than expected, primarily due to
an overburden collapse in August which trapped a highwall miner,
rendering it inoperable. The third quarter 2013 cash margin
of $6.40 per ton decreased 21.9
percent, or $1.79 per ton, over the
third quarter 2012 cash margin of $8.19 per ton. Coal sales revenue increased
2.6 percent to $50.74 per ton, but
was offset by a 7.6 percent increase in cash cost of coal sales to
$44.34 per ton as a result of the
lower production.
Net loss for the third quarter of 2013 was $5.1 million compared to a net loss of
$3.0 million for the third quarter of
2012. Net loss for the third quarter of 2013 included a gain
of $2.7 million relating to the
change in fair value of warrants, a $1.1
million net gain primarily related to insurance proceeds
from the lost mining equipment, and $0.2
million of restructuring expenses. Net loss for the
third quarter of 2012 included $0.4
million in net loss on the disposal of mining equipment and
$0.2 million of impairment and
restructuring expenses. Excluding these items, Adjusted Net
Loss2 would have been $8.8
million for the third quarter of 2013 compared to
$2.5 million for the third quarter of
2012.
"We had a challenging third quarter as the production from one
of our two highwall miners was disrupted for close to a month,"
said Oxford's President and Chief Executive Officer Charles C. Ungurean. "Fortunately, we were able
to expeditiously replace the highwall miner and resume
production. Looking forward, we remain committed to
successfully navigating through this market downturn by closely
managing our capital expenditures and liquidity, and leveraging the
assets redeployed from the Illinois Basin to our Northern Appalachian
operations."
Business Update
Oxford's projected sales volume is fully committed and priced
for the balance of 2013, underscoring the strength of its long-term
customer relationships and the strategic importance in its core
region. For 2014, Oxford has 5.0 million tons of sales
committed, of which 3.3 million tons are priced and 1.7 million
tons are unpriced.
As a leading low-cost producer of thermal coal and the largest
producer of surface-mined coal in Ohio, Oxford is focused on its core Northern
Appalachian operations. Continued rationalization of the
Partnership's Illinois Basin
operations has allowed for the transfer of excess equipment to the
Northern Appalachian mines, which has reduced capital
spending. Based on current market conditions, the Partnership
expects to idle all production at its Illinois Basin operations by the end of 2013
and finish redeploying equipment during the first quarter of
2014.
Liquidity
As of September 30, 2013, the
Partnership had $2.7 million of cash
and $8.5 million in available
borrowing capacity on its revolving credit line under the new
credit facilities closed in the second quarter. The
Partnership continues to pursue the sale of a shovel, which is its
remaining piece of excess Illinois
Basin equipment to be sold.
2013 Guidance
The Partnership provides the following updated guidance for 2013
based on its current industry outlook:
The Partnership expects to produce between 6.1 million tons and
6.3 million tons and sell between 6.6 million tons and 6.8 million
tons of thermal coal. The average selling price is projected
to be $50.75 per ton to $51.25 per ton, with an anticipated average cost
of $43.75 per ton to $44.25 per ton.
Adjusted EBITDA is expected to be in the range of $42 million to $45 million.
The Partnership anticipates capital expenditures of between
$22 million and $25 million, net of
reinvested insurance proceeds.
Conference Call
The Partnership will host a conference call at 10:00 a.m. Eastern Time today (November 5, 2013) to review its third quarter
2013 financial results. To participate in the call, dial
(800) 299-8538 or (617) 786-2902 for international callers and
provide passcode 67232474. The call will also be webcast live
on the Internet in the Investor Relations section of the
Partnership's website at www.OxfordResources.com.
An audio replay of the conference call will be available for
seven days beginning at 2:00 p.m. Eastern
Time on November 5, 2013, and
may be accessed at (888) 286-8010 or (617) 801-6888 for
international callers. The replay passcode is 43125494.
The webcast will also be archived on the Partnership's
website at www.OxfordResources.com for 30 days following the
call.
About Oxford Resource Partners, LP
Oxford Resource Partners, LP is a low-cost producer of
high-value steam coal in Northern Appalachia and the Illinois
Basin. Oxford markets its coal primarily to large electric
utilities with coal-fired, base-load scrubbed power plants under
long-term coal sales contracts. The Partnership is
headquartered in Columbus,
Ohio.
For more information about Oxford Resource Partners, LP (NYSE:
OXF), please visit www.OxfordResources.com. Financial and
other information about the Partnership is routinely posted on and
accessible at www.OxfordResources.com.
Forward-Looking Statements
Except for historical information, statements made in this press
release are "forward-looking statements." All statements,
other than statements of historical facts, included in this press
release that address activities, events or developments that the
Partnership expects, believes or anticipates will or may occur in
the future are forward-looking statements, including the statements
and information set forth under the headings "Business Update,"
"Liquidity" and "2013 Guidance."
These statements are based on certain assumptions made by the
Partnership based on its management's experience and perception of
historical trends, current conditions, expected future developments
and other factors the Partnership's management believes are
appropriate under the circumstances. Such statements are
subject to a number of assumptions, risks and uncertainties, many
of which are beyond the Partnership's control, which may cause
actual results to differ materially from those implied or expressed
by the forward-looking statements. These risks, uncertainties
and contingencies include, but are not limited to, the following:
productivity levels, margins earned and the level of operating
costs; weakness in global economic conditions or in customers'
industries; changes in governmental regulation of the mining
industry or the electric power industry and the increased costs of
complying with those changes; decreases in demand for electricity
and changes in coal consumption patterns of U.S. electric power
generators; the Partnership's dependence on a limited number of
customers; the Partnership's inability to enter into new long-term
coal sales contracts at attractive prices and the renewal and other
risks associated with the Partnership's existing long-term coal
sales contracts, including risks related to adjustments to price,
volume or other terms of those contracts; difficulties in
collecting the Partnership's receivables because of credit or
financial problems of major customers, and customer bankruptcies,
cancellations or breaches to existing contracts or other failures
to perform; the Partnership's ability to acquire additional coal
reserves; the Partnership's ability to respond to increased
competition within the coal industry; fluctuations in coal demand,
prices and availability due to labor and transportation costs and
disruptions, equipment availability, governmental regulations,
including those pertaining to carbon dioxide emissions, and other
factors; significant costs imposed on the Partnership's mining
operations by extensive and frequently changing environmental laws
and regulations, and greater than expected environmental
regulations, costs and liabilities; legislation and regulatory and
related judicial decisions and interpretations including issues
pertaining to climate change and miner health and safety; a variety
of operational, geologic, permitting, labor and weather-related
factors, including those pertaining to both our mining operations
and our underground coal reserves that we do not operate;
limitations in the cash distributions the Partnership receives from
its majority-owned subsidiary, Harrison Resources, LLC, and the
ability of Harrison Resources, LLC to acquire additional reserves
on economical terms from CONSOL Energy Inc. in the future; the
potential for inaccuracies in estimates of the Partnership's coal
reserves, which could result in lower than expected revenues or
higher than expected costs; the accuracy of the assumptions
underlying the Partnership's reclamation and mine closure
obligations; liquidity constraints, including those resulting from
the cost or unavailability of financing due to current capital
markets conditions; risks associated with major mine-related
accidents; results of litigation, including claims not yet
asserted; the Partnership's ability to attract and retain key
management personnel; greater than expected shortage of skilled
labor; the Partnership's ability to maintain satisfactory relations
with employees; and failure to obtain, maintain or renew security
arrangements, such as surety bonds or letters of credit, in a
timely manner and on acceptable terms.
The Partnership undertakes no obligation to publicly update or
revise any forward-looking statements. Readers should not
place undue reliance on forward-looking statements, which reflect
management's views only as of the date hereof. Further
information on risks and uncertainties is available in the
Partnership's periodic reports filed with the U.S. Securities and
Exchange Commission or otherwise publicly disseminated by the
Partnership.
1 The definition of Adjusted EBITDA, which is a
non-GAAP financial measure, and reconciliation thereof to Net Loss,
a comparable GAAP financial measure, are included in a table
presented near the end of this press release.
2 The definition of Adjusted Net Loss, which is a
non-GAAP financial measure, and reconciliation thereof to Net Loss,
a comparable GAAP financial measure, are included in a table
presented near the end of this press release.
|
OXFORD RESOURCE
PARTNERS, LP AND SUBSIDIARIES
|
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
FOR THE THREE AND
NINE MONTHS ENDED SEPTEMBER 30, 2013 AND 2012
|
|
(in thousands,
except for unit data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
|
|
|
|
September
30
|
|
September
30
|
|
|
|
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REVENUES:
|
|
|
|
|
|
|
|
|
|
|
Coal sales
|
|
|
$
84,742
|
|
$
95,027
|
|
$
255,226
|
|
$
279,806
|
|
Other
revenue
|
|
2,844
|
|
2,187
|
|
9,211
|
|
7,223
|
|
|
Total
revenues
|
|
87,586
|
|
97,214
|
|
264,437
|
|
287,029
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COSTS AND
EXPENSES:
|
|
|
|
|
|
|
|
|
|
Cost of coal
sales:
|
|
|
|
|
|
|
|
|
|
|
Produced
coal
|
|
68,175
|
|
72,896
|
|
202,159
|
|
221,101
|
|
|
Purchased
coal
|
|
5,881
|
|
6,274
|
|
17,774
|
|
16,121
|
|
|
|
Total cost of coal
sales (excluding
|
|
|
|
|
|
|
|
|
|
|
|
|
depreciation,
depletion and amortization)
|
|
74,056
|
|
79,170
|
|
219,933
|
|
237,222
|
|
Cost of other
revenue
|
|
455
|
|
499
|
|
1,228
|
|
1,285
|
|
Depreciation,
depletion and amortization
|
|
12,017
|
|
13,110
|
|
37,760
|
|
39,019
|
|
Selling, general and
administrative expenses
|
|
3,051
|
|
3,901
|
|
13,056
|
|
11,475
|
|
Impairment and
restructuring expenses
|
|
150
|
|
206
|
|
1,012
|
|
13,843
|
|
(Gain) loss on
disposal of assets, net
|
|
(1,107)
|
|
357
|
|
(6,594)
|
|
(4,156)
|
|
|
Total costs and
expenses
|
|
88,622
|
|
97,243
|
|
266,395
|
|
298,688
|
|
INCOME (LOSS) FROM
OPERATIONS
|
|
(1,036)
|
|
(29)
|
|
(1,958)
|
|
(11,659)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTEREST AND OTHER
EXPENSES:
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
1
|
|
1
|
|
3
|
|
7
|
|
Interest
expense
|
|
(6,808)
|
|
(3,012)
|
|
(14,146)
|
|
(8,522)
|
|
Change in fair value
of warrants
|
|
2,714
|
|
-
|
|
565
|
|
-
|
|
|
Total interest and
other expenses
|
|
(4,093)
|
|
(3,011)
|
|
(13,578)
|
|
(8,515)
|
|
NET
LOSS
|
|
|
|
(5,129)
|
|
(3,040)
|
|
(15,536)
|
|
(20,174)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable
to noncontrolling interest
|
|
(470)
|
|
(274)
|
|
(1,120)
|
|
(371)
|
|
Net loss attributable
to Oxford Resource
|
|
|
|
|
|
|
|
|
|
Partners, LP
unitholders
|
|
(5,599)
|
|
(3,314)
|
|
(16,656)
|
|
(20,545)
|
|
Net loss allocated to
general partner
|
|
(112)
|
|
(66)
|
|
(333)
|
|
(410)
|
|
Net loss allocated to
limited partners
|
|
$
(5,487)
|
|
$
(3,248)
|
|
$
(16,323)
|
|
$
(20,135)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per limited
partner unit:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
$
(0.22)
|
|
$
(0.16)
|
|
$
(0.74)
|
|
$
(0.97)
|
|
Diluted
|
|
|
|
$
(0.22)
|
|
$
(0.16)
|
|
$
(0.74)
|
|
$
(0.97)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of limited partner units outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
24,587,411
|
|
20,717,734
|
|
22,159,610
|
|
20,702,042
|
|
Diluted
|
|
|
|
24,587,411
|
|
20,717,734
|
|
22,159,610
|
|
20,702,042
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions paid
per unit:
|
|
|
|
|
|
|
|
|
|
Limited
partners:
|
|
|
|
|
|
|
|
|
|
|
Common
|
|
$
-
|
|
$
0.4375
|
|
$
-
|
|
$
1.3125
|
|
|
Subordinated
|
|
$
-
|
|
$
0.1000
|
|
$
-
|
|
$
0.6375
|
|
General
partner
|
|
$
-
|
|
$
0.2688
|
|
$
-
|
|
$
0.9750
|
|
OXFORD RESOURCE
PARTNERS, LP AND SUBSIDIARIES
|
|
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
|
|
AS OF SEPTEMBER
30, 2013 AND DECEMBER 31, 2012
|
|
(in thousands,
except for unit data)
|
|
|
|
|
|
|
|
|
|
|
|
As of
September 30,
2013
|
|
As of
December 31,
2012
|
|
ASSETS
|
|
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
|
Cash and cash
equivalents
|
$
2,738
|
|
$
3,977
|
|
Accounts
receivable
|
28,489
|
|
19,792
|
|
Inventory
|
12,065
|
|
12,554
|
|
Advance
royalties
|
4,155
|
|
4,461
|
|
Prepaid expenses and
other assets
|
1,767
|
|
2,046
|
|
Assets held for
sale
|
-
|
|
6,106
|
|
|
Total current
assets
|
49,214
|
|
48,936
|
|
|
|
|
|
|
|
|
PROPERTY, PLANT AND
EQUIPMENT, NET
|
150,143
|
|
158,483
|
|
ADVANCE ROYALTIES,
LESS CURRENT PORTION
|
6,194
|
|
4,861
|
|
INTANGIBLE ASSETS,
NET
|
1,251
|
|
1,442
|
|
OTHER LONG-TERM
ASSETS
|
24,224
|
|
7,177
|
|
|
Total
assets
|
$
231,026
|
|
$
220,899
|
|
|
|
|
|
|
|
|
LIABILITIES AND
PARTNERS' CAPITAL
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
Accounts
payable
|
$
24,332
|
|
$
26,893
|
|
Current portion of
long-term debt
|
5,929
|
|
102,970
|
|
Current portion of
reclamation and mine closure costs
|
5,937
|
|
3,869
|
|
Accrued taxes other
than income taxes
|
1,175
|
|
1,213
|
|
Accrued payroll and
related expenses
|
2,507
|
|
1,629
|
|
Other
liabilities
|
2,529
|
|
2,491
|
|
|
Total current
liabilities
|
42,409
|
|
139,065
|
|
|
|
|
|
|
|
|
LONG-TERM
DEBT
|
152,491
|
|
41,557
|
|
RECLAMATION AND MINE
CLOSURE COSTS
|
28,267
|
|
25,144
|
|
WARRANTS
|
7,314
|
|
-
|
|
OTHER LONG-TERM
LIABILITIES
|
3,730
|
|
3,806
|
|
|
Total
liabilities
|
234,211
|
|
209,572
|
|
|
|
|
|
|
|
|
PARTNERS' CAPITAL
(DEFICIT):
|
|
|
|
|
Limited partners
(20,836,584 and 20,751,190 units outstanding
|
|
|
|
|
|
as of September 30,
2013 and December 31, 2012, respectively)
|
(5,706)
|
|
9,593
|
|
General partner
(423,494 units outstanding as of September 30, 2013
|
|
|
|
|
and December 31,
2012)
|
(2,343)
|
|
(2,010)
|
|
|
|
Total Oxford Resource
Partners, LP (deficit) capital
|
(8,049)
|
|
7,583
|
|
Noncontrolling
interest
|
4,864
|
|
3,744
|
|
|
Total partners'
(deficit) capital
|
(3,185)
|
|
11,327
|
|
|
Total liabilities and
partners' capital
|
$
231,026
|
|
$
220,899
|
|
OXFORD RESOURCE
PARTNERS, LP AND SUBSIDIARIES
|
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
FOR THE NINE
MONTHS ENDED SEPTEMBER 30, 2013 AND 2012
|
|
(in
thousands)
|
|
|
|
|
|
|
|
Nine Months Ended
September 30,
|
|
|
2013
|
|
2012
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
|
|
Net loss
|
|
$
(15,536)
|
|
$
(20,174)
|
|
Adjustments to
reconcile net loss to net cash from operating
activities:
|
|
|
|
|
|
|
|
|
|
|
Depreciation, depletion and amortization
|
|
37,760
|
|
39,019
|
|
Impairment and restructuring expenses
|
|
1,012
|
|
13,843
|
|
Change
in fair value of warrants
|
|
(565)
|
|
-
|
|
Interest
rate swap and fuel contract adjustments to market
|
|
(12)
|
|
(194)
|
|
Non-cash
interest expense
|
|
2,238
|
|
-
|
|
Amortization and write-off of deferred financing costs
|
|
3,040
|
|
1,527
|
|
Non-cash
equity-based compensation expense
|
|
1,090
|
|
966
|
|
Accretion of reclamation and mine closure costs
|
|
1,683
|
|
1,189
|
|
Amortization of below-market coal sales contracts
|
|
(60)
|
|
(543)
|
|
(Gain)
loss on disposal of assets, net
|
|
(6,594)
|
|
(4,156)
|
|
|
|
|
|
|
Changes
in assets and liabilities:
|
|
|
|
|
|
Accounts
receivable
|
|
(8,697)
|
|
(2,246)
|
|
Inventory
|
|
489
|
|
(478)
|
|
Advance
royalties
|
|
(1,265)
|
|
442
|
|
Other
assets
|
|
(276)
|
|
(1,981)
|
|
Accounts
payable
|
|
(2,561)
|
|
(6)
|
|
Reclamation and mine
closure costs
|
|
(6,837)
|
|
(6,413)
|
|
Accrued taxes other
than income taxes
|
|
(38)
|
|
(392)
|
|
Accrued payroll and
related expenses
|
|
878
|
|
(315)
|
|
Other
liabilities
|
|
(248)
|
|
(3,327)
|
|
Net cash from operating activities
|
|
5,501
|
|
16,761
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
|
|
Purchase of property
and equipment
|
|
(12,641)
|
|
(15,226)
|
|
Purchase of coal
reserves and land
|
|
(14)
|
|
(51)
|
|
Mine development
costs
|
|
(2,612)
|
|
(2,760)
|
|
Proceeds from sale of
assets
|
|
6,284
|
|
8,543
|
|
Insurance
proceeds
|
|
3,035
|
|
-
|
|
Change in restricted
cash
|
|
1,429
|
|
3,092
|
|
Net cash from investing activities
|
|
(4,519)
|
|
(6,402)
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
|
|
Proceeds from
borrowings
|
|
150,000
|
|
-
|
|
Payments on
borrowings
|
|
(56,071)
|
|
(9,417)
|
|
Advances on line of
credit
|
|
43,588
|
|
41,000
|
|
Payments on line of
credit
|
|
(119,088)
|
|
(17,000)
|
|
Debt issuance
costs
|
|
(9,517)
|
|
(1,086)
|
|
Collateral for
reclamation bonds
|
|
(11,133)
|
|
-
|
|
Capital contributions
from partners
|
|
-
|
|
7
|
|
Distributions to
partners
|
|
-
|
|
(20,644)
|
|
Net cash from financing activities
|
|
(2,221)
|
|
(7,140)
|
|
|
|
|
|
|
NET CHANGE IN CASH
AND CASH EQUIVALENTS
|
|
(1,239)
|
|
3,219
|
|
|
|
|
|
|
CASH AND CASH
EQUIVALENTS, beginning of period
|
|
3,977
|
|
3,032
|
|
|
|
|
|
|
CASH AND CASH
EQUIVALENTS, end of period
|
|
$
2,738
|
|
$
6,251
|
|
OXFORD RESOURCE
PARTNERS, LP AND SUBSIDIARIES
|
|
UNAUDITED
RECONCILIATION OF NET LOSS TO ADJUSTED
EBITDA1
|
|
FOR THE THREE AND
NINE MONTHS ENDED SEPTEMBER 30, 2013 AND 2012
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
|
September
30,
|
|
September
30,
|
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
|
Net
loss
|
|
$
(5,129)
|
|
$
(3,040)
|
|
$
(15,536)
|
|
$
(20,174)
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
Interest expense, net
of interest income
|
|
6,807
|
|
3,011
|
|
14,143
|
|
8,515
|
|
Depreciation,
depletion and amortization
|
|
12,017
|
|
13,110
|
|
37,760
|
|
39,019
|
|
Change in fair value
of warrants
|
|
(2,714)
|
|
-
|
|
(565)
|
|
-
|
|
Impairment and
restructuring expenses
|
|
150
|
|
206
|
|
1,012
|
|
13,843
|
|
(Gain) loss on
disposal of assets, net
|
|
(1,107)
|
|
357
|
|
(6,594)
|
|
(4,156)
|
|
Amortization of
below-market coal sales contracts
|
|
-
|
|
(121)
|
|
(60)
|
|
(543)
|
|
Non-cash equity-based
compensation expense
|
|
351
|
|
490
|
|
1,090
|
|
966
|
|
Non-cash reclamation
and mine closure costs
|
|
625
|
|
384
|
|
1,683
|
|
1,189
|
|
Non-recurring
costs:
|
|
|
|
|
|
|
|
|
|
Debt
refinancing expenses
|
|
-
|
|
-
|
|
3,059
|
|
-
|
|
Other
|
|
-
|
|
(227)
|
|
(2,100)
|
|
1,238
|
|
Adjusted
EBITDA
|
|
$
11,000
|
|
$
14,170
|
|
$
33,892
|
|
$
39,897
|
|
|
|
1
|
Adjusted EBITDA is a
non-GAAP financial measure used by management to gauge operating
performance. We define Adjusted EBITDA as net income or loss
before deducting interest, income taxes, depreciation, depletion,
amortization, change in fair value of warrants, impairment and
restructuring expenses, gain or loss on disposal of assets,
amortization of below-market coal sales contracts, non-cash
equity-based compensation expense, non-cash reclamation and mine
closure costs, and certain non-recurring items. Although
Adjusted EBITDA is not a measure of financial performance
calculated in accordance with GAAP, we believe it is useful to
management and others, such as investors and lenders, in evaluating
our financial performance without regard to financing methods,
capital structure or income taxes; our ability to generate cash
sufficient to pay interest on our indebtedness, make distributions
and fund capital expenditures; and our compliance with certain
credit facility financial covenants. Because not all
companies calculate Adjusted EBITDA the same way, our calculation
may not be comparable to similarly titled measures of other
companies.
|
|
|
|
|
OXFORD RESOURCE
PARTNERS, LP AND SUBSIDIARIES
|
|
UNAUDITED
RECONCILIATION OF NET LOSS TO ADJUSTED NET
LOSS2
|
|
FOR THE THREE AND
NINE MONTHS ENDED SEPTEMBER 30, 2013 AND 2012
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
|
September
30,
|
|
September
30,
|
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
|
Net
loss
|
|
$
(5,129)
|
|
$
(3,040)
|
|
$
(15,536)
|
|
$
(20,174)
|
|
|
|
|
|
|
|
|
|
|
|
Adjustment:
|
|
|
|
|
|
|
|
|
|
Impairment and
restructuring expenses
|
|
150
|
|
206
|
|
1,012
|
|
13,843
|
|
(Gain) loss on
disposal of assets, net
|
|
(1,107)
|
|
357
|
|
(6,594)
|
|
(4,156)
|
|
Change in fair value
of warrants
|
|
(2,714)
|
|
-
|
|
(565)
|
|
-
|
|
Debt refinancing
expenses
|
|
-
|
|
-
|
|
3,059
|
|
-
|
|
Write-off of deferred
financing costs related to prior credit facility
|
|
-
|
|
-
|
|
808
|
|
-
|
|
Adjusted net
loss
|
|
$
(8,800)
|
|
$
(2,477)
|
|
$
(17,816)
|
|
$
(10,487)
|
|
|
2
|
Adjusted Net Loss is
a non-GAAP financial measure used by management to gauge operating
performance. We define Adjusted Net Loss as net income or
loss before deducting impairment and restructuring expenses, gain
or loss on disposal of assets, change in fair value of warrants,
debt financing expenses and write-off of deferred refinancing
costs. Although Adjusted Net Loss is not a measure of
financial performance calculated in accordance with GAAP, we
believe it is useful to management and others, such as investors
and lenders, in evaluating our financial performance without regard
to items which are primarily non-cash and our restructuring efforts
which are not typical operating activities. Because not all
companies calculate Adjusted Net Loss the same way, our calculation
may not be comparable to similarly titled measures of other
companies.
|
|
|
|
|
|
|
|
|
|
|
|
|
OXFORD RESOURCE
PARTNERS, LP AND SUBSIDIARIES
|
|
UNAUDITED
OPERATING STATISTICS3
|
|
FOR THE THREE AND
NINE MONTHS ENDED SEPTEMBER 30, 2013 AND 2012
|
|
(in thousands,
except per ton amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
|
September
30,
|
|
September
30,
|
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
|
Tons sold
|
|
1,670
|
|
1,922
|
|
5,017
|
|
5,651
|
|
|
|
|
|
|
|
|
|
|
|
Coal sales revenue
per ton
|
|
$
50.74
|
|
$
49.45
|
|
$
50.87
|
|
$
49.51
|
|
Amortization of
below-market coal sales contracts per ton
|
-
|
|
(0.06)
|
|
(0.01)
|
|
(0.10)
|
|
Cash coal sales
revenue per ton
|
|
50.74
|
|
49.39
|
|
50.86
|
|
49.41
|
|
Cash cost of coal
sales per ton
|
|
(44.34)
|
|
(41.20)
|
|
(43.84)
|
|
(41.98)
|
|
Cash margin per
ton
|
|
$
6.40
|
|
$
8.19
|
|
$
7.02
|
|
$
7.43
|
|
|
|
3
|
Per ton amounts are
calculated by dividing the related amount on the financial
statements by the number of tons sold. Although per ton
amounts are not measures of performance calculated in accordance
with GAAP, we believe they are useful to management and others,
such as investors and lenders, in evaluating performance because
they are widely used in the coal industry as a measure to evaluate
a company's sales performance or control over costs.
Because not all companies calculate these measures the same way,
our calculations may not be comparable to similarly titled measures
of other companies.
|
SOURCE Oxford Resource Partners, LP