COLUMBUS, Ohio, March 4, 2014 /PRNewswire/ -- Oxford Resource
Partners, LP (NYSE: OXF) (the "Partnership" or "Oxford") today
announced fourth quarter and full year 2013 financial results.
Fourth Quarter 2013 Results
Adjusted EBITDA[1] was $8.2 million for the fourth quarter of 2013
compared to $8.0 million for the
fourth quarter of 2012. The increase was driven by a 14.6 percent
increase in cash margin to $6.61 per
ton for the fourth quarter of 2013 from $5.77 per ton for the fourth quarter of 2012,
partially offset by a 114,000 ton decrease in tons sold
attributable to the winding down of the Illinois Basin operations. Cash coal
sales revenue increased 2.1 percent to $51.09 per ton for the fourth quarter of 2013
from $50.05 per ton for the fourth
quarter of 2012. For the fourth quarter of 2013, cash cost of coal
sales increased by 0.5 percent to $44.48 per ton from $44.28 per ton for the fourth quarter of
2012.
Net loss was $8.2 million for the
fourth quarter of 2013 compared to a net loss of $5.9 million for the fourth quarter of
2012. There was $3.9 million of
additional interest expense attributable to the new credit
facilities for the fourth quarter of 2013 over the fourth quarter
of 2012. Adjusted Net Loss2 was
$10.0 million for the fourth quarter
of 2013, when excluding a $2.7
million gain relating to the change in fair value of
warrants, $0.7 million of
restructuring expenses and a $0.1
million loss on disposal of assets, and without any
adjustment for the additional interest expense. Adjusted Net Loss
was $7.9 million for the fourth
quarter of 2012, when excluding a $3.9
million gain on disposal of assets and $1.8 million of impairment and restructuring
expenses.
"We completed the idling of our Illinois Basin operations during the fourth
quarter and continue to focus on our core Northern Appalachian
operations where we have a strong committed sales position for
2014. In addition to the productivity improvements we
have achieved in our Northern Appalachian operations, we have also
been proactive in rightsizing our cost structure to better align
with our committed sales position through the temporary idling of
two Ohio mines," said Oxford's
President and Chief Executive Officer Charles C. Ungurean. "While coal market
conditions continue to be challenging, there may be opportunities
for incremental coal deliveries due to the extreme cold weather we
have been experiencing. Should this demand materialize, we have the
ability to increase production with little incremental cost."
Full Year 2013 Results
Adjusted EBITDA was $42.1 million
for the year ended December 31, 2013
compared to $47.9 million for the
year ended December 31, 2012. The
decline was primarily attributable to planned lower sales volume
from the Illinois Basin operations
and a 1.8 percent decline in cash margin to $6.93 per ton for 2013 from $7.06 per ton for 2012. While cash coal
sales revenue increased 2.7 percent to $50.92 per ton for 2013 from $49.57 per ton for 2012, this was offset by an
increase in cash cost of coal sales for 2013. Cash cost of
coal sales increased 3.5 percent to $43.99 per ton for 2013 from $42.51 per ton for 2012.
Net loss was $23.7 million for the
year ended December 31, 2013 compared
to a net loss of $26.1 million for
the year ended December 31,
2012. There was $9.6 million of
additional interest expense attributable to the new credit
facilities for 2013 over 2012. Adjusted Net Loss was
$27.8 million for 2013, when
excluding a $6.5 million gain on
disposal of assets, a $3.3 million
gain relating to the change in fair value of warrants, $3.1 million in debt refinancing expenses,
$1.8 million of restructuring
expenses and $0.8 million from the
write-off of deferred financing costs related to the prior credit
facility, and without any adjustment for the additional interest
expense. Adjusted Net Loss was $18.4
million for 2012, when excluding $15.7 million of impairment and restructuring
expenses and an $8.0 million gain on
disposal of assets.
Business Update
As of today, Oxford's projected sales volume is 94 percent
committed and priced for 2014, underscoring the strength of its
long-term customer relationships and its strategic importance in
its core region.
As a leading low-cost producer of thermal coal and the largest
producer of surface mined coal in Ohio, Oxford continues to focus on its core
Northern Appalachian operations. In 2013, Oxford acquired 6.2
million tons of proven and probable coal reserves in Northern
Appalachia, an amount in excess of its 2013 production. Oxford also
received nine permits in 2013 to mine a total of 6.8 million tons
of proven and probable coal reserves in Northern Appalachia. Oxford
has completed the idling of its Illinois Basin operations which has allowed
for the transfer of excess equipment for use at the Northern
Appalachian mines and a consequent reduction in the planned capital
expenditures for 2014.
Liquidity
As of December 31, 2013, the
Partnership had $3.1 million in cash
and $5.1 million in available
borrowing capacity on its revolving credit line.
The Partnership continues to actively manage its liquidity and
has taken the following actions to improve its position:
- idling its Illinois Basin
operations;
- aligning its coal production with its committed coal sales and
reducing its costs by temporarily idling production at two Northern
Appalachian mines;
- reducing its capital expenditures; and
- acquiring a strategically located coal preparation plant next
to a significant customer that will reduce coal transportation
costs.
The Partnership continues to pursue the sale of its remaining
excess Illinois Basin equipment,
consisting of a large-capacity shovel and several smaller pieces of
equipment, and would consider offers for the remaining coal
reserves and/or facilities related to the Illinois Basin operations.
2014 Guidance
The Partnership provides the following guidance for 2014 based
on its current industry outlook:
The Partnership expects to produce between 5.5 million tons and
5.9 million tons and sell between 5.6 million tons and 6.0 million
tons of thermal coal. The average selling price is
anticipated to be in the range of $51.50 per ton to $53.50 per ton, with an anticipated average cost
in the range of $42.30 per ton to
$44.30 per ton.
Adjusted EBITDA is expected to be in the range of $42 million to $48 million.
The Partnership anticipates capital expenditures of between
$17 million and $21 million.
Conference Call
The Partnership will host a conference call at 10:00 a.m. Eastern Time today (March 4, 2014) to review its fourth quarter and
full year 2013 financial results. To participate in the call,
dial (877) 280-4953 or (857) 244-7310 for international callers and
provide passcode 16213530. 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 12:00 p.m. Eastern
Time on March 4, 2014, and may
be accessed at (888) 286-8010 or (617) 801-6888 for international
callers. The replay passcode is 55542437. 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 thermal coal in Northern Appalachia. 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 "2014 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 mining operations and
underground coal reserves that the Partnership does 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 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.
Withholding Information for Foreign Investors
This announcement is intended to be a qualified notice under
Treasury Regulation Section 1.1446-4(b). Brokers and nominees
should treat one hundred percent (100.0%) of Partnership
distributions to foreign investors, when and if such distributions
are made, as being attributable to income that is effectively
connected with a United States
trade or business. Accordingly, Partnership distributions to
foreign investors would be subject to federal income tax
withholding at the highest applicable rate.
1 The definition of Adjusted EBITDA, which
is a non-GAAP financial measure, and a 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
TWELVE MONTHS ENDED DECEMBER 31, 2013 AND 2012
|
(in thousands,
except for unit data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REVENUES:
|
|
|
|
|
|
|
|
|
|
Coal sales
|
|
$
80,975
|
|
$
85,122
|
|
$
336,201
|
|
$
364,928
|
|
Other
revenue
|
|
1,355
|
|
1,376
|
|
10,566
|
|
8,599
|
|
|
Total
revenues
|
|
82,330
|
|
86,498
|
|
346,767
|
|
373,527
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COSTS AND
EXPENSES:
|
|
|
|
|
|
|
|
|
|
Cost of coal
sales:
|
|
|
|
|
|
|
|
|
|
|
Produced
coal
|
|
65,971
|
|
67,681
|
|
268,130
|
|
288,782
|
|
|
Purchased
coal
|
|
4,523
|
|
7,564
|
|
22,297
|
|
23,685
|
|
|
|
Total cost of coal
sales (excluding
depreciation,
depletion and amortization)
|
|
70,494
|
|
75,245
|
|
290,427
|
|
312,467
|
|
Cost of other
revenue
|
|
391
|
|
(90)
|
|
1,619
|
|
1,195
|
|
Depreciation,
depletion and amortization
|
|
10,321
|
|
12,151
|
|
48,081
|
|
51,170
|
|
Selling, general and
administrative expenses
|
|
4,241
|
|
4,154
|
|
17,297
|
|
15,629
|
|
Impairment and
restructuring expenses
|
|
749
|
|
1,807
|
|
1,761
|
|
15,650
|
|
Loss (gain) on
disposal of assets, net
|
|
106
|
|
(3,865)
|
|
(6,488)
|
|
(8,021)
|
|
|
Total costs and
expenses
|
|
86,302
|
|
89,402
|
|
352,697
|
|
388,090
|
LOSS FROM
OPERATIONS
|
|
(3,972)
|
|
(2,904)
|
|
(5,930)
|
|
(14,563)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTEREST AND OTHER
EXPENSES:
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
1
|
|
3
|
|
4
|
|
10
|
|
Interest
expense
|
|
(6,908)
|
|
(2,978)
|
|
(21,054)
|
|
(11,500)
|
|
Change in fair value
of warrants
|
|
2,715
|
|
-
|
|
3,280
|
|
-
|
|
|
Total interest and
other expenses
|
|
(4,192)
|
|
(2,975)
|
|
(17,770)
|
|
(11,490)
|
NET
LOSS
|
|
(8,164)
|
|
(5,879)
|
|
(23,700)
|
|
(26,053)
|
Net income
attributable to noncontrolling interest
|
|
(105)
|
|
(384)
|
|
(1,225)
|
|
(755)
|
Net loss attributable
to Oxford Resource Partners, LP
unitholders
|
|
(8,269)
|
|
(6,263)
|
|
(24,925)
|
|
(26,808)
|
Net loss allocated to
general partner
|
|
(164)
|
|
(125)
|
|
(497)
|
|
(535)
|
Net loss allocated to
limited partners
|
|
$
(8,105)
|
|
$
(6,138)
|
|
$
(24,428)
|
|
$
(26,273)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per limited
partner unit:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
(0.33)
|
|
$
(0.29)
|
|
$
(1.07)
|
|
$
(1.27)
|
|
Diluted
|
|
$
(0.33)
|
|
$
(0.29)
|
|
$
(1.07)
|
|
$
(1.27)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of limited partner units outstanding:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
20,756,081
|
|
20,735,915
|
|
22,776,481
|
|
20,711,952
|
|
Diluted
|
|
20,756,081
|
|
20,735,915
|
|
22,776,481
|
|
20,711,952
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions paid
per unit:
|
|
|
|
|
|
|
|
|
|
Limited
partners:
|
|
|
|
|
|
|
|
|
|
|
Common
|
|
$
-
|
|
$
-
|
|
$
-
|
|
$
1.5125
|
|
|
Subordinated
|
|
$
-
|
|
$
-
|
|
$
-
|
|
$
0.6375
|
|
General
partner
|
|
$
-
|
|
$
-
|
|
$
-
|
|
$
1.0750
|
OXFORD RESOURCE
PARTNERS, LP AND SUBSIDIARIES
|
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
|
AS OF DECEMBER 31,
2013 AND 2012
|
(in thousands,
except for unit data)
|
|
|
|
|
|
|
|
|
|
|
|
As of
December 31,
|
|
|
|
|
2013
|
|
2012
|
ASSETS
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
|
Cash
|
$
3,089
|
|
$
3,977
|
|
Accounts
receivable
|
25,850
|
|
19,792
|
|
Inventory
|
13,840
|
|
12,554
|
|
Advance
royalties
|
2,604
|
|
4,461
|
|
Prepaid expenses and
other assets
|
1,737
|
|
2,046
|
|
Assets held for
sale
|
-
|
|
6,106
|
|
|
Total current
assets
|
47,120
|
|
48,936
|
|
|
|
|
|
|
|
PROPERTY, PLANT AND
EQUIPMENT, NET
|
144,426
|
|
158,483
|
ADVANCE ROYALTIES,
LESS CURRENT PORTION
|
8,800
|
|
4,861
|
INTANGIBLE ASSETS,
NET
|
1,188
|
|
1,442
|
OTHER LONG-TERM
ASSETS
|
22,821
|
|
7,177
|
|
|
Total
assets
|
$ 224,355
|
|
$ 220,899
|
|
|
|
|
|
|
|
LIABILITIES AND
PARTNERS' (DEFICIT) CAPITAL
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
Accounts
payable
|
$
23,932
|
|
$
26,893
|
|
Current portion of
long-term debt
|
7,901
|
|
102,970
|
|
Current portion of
reclamation and mine closure costs
|
5,996
|
|
3,869
|
|
Accrued taxes other
than income taxes
|
1,293
|
|
1,213
|
|
Accrued payroll and
related expenses
|
3,389
|
|
1,629
|
|
Other
liabilities
|
3,457
|
|
2,491
|
|
|
Total current
liabilities
|
45,968
|
|
139,065
|
|
|
|
|
|
|
|
LONG-TERM
DEBT
|
155,375
|
|
41,557
|
RECLAMATION AND MINE
CLOSURE COSTS
|
25,658
|
|
25,144
|
WARRANTS
|
4,599
|
|
-
|
OTHER LONG-TERM
LIABILITIES
|
3,753
|
|
3,806
|
|
|
Total
liabilities
|
235,353
|
|
209,572
|
|
|
|
|
|
|
|
PARTNERS' (DEFICIT)
CAPITAL:
|
|
|
|
|
Limited partners
(20,867,073 and 20,751,190 units outstanding
|
|
|
|
|
|
as of December 31,
2013 and 2012, respectively)
|
(13,460)
|
|
9,593
|
|
General partner
(423,494 units outstanding as of
|
|
|
|
|
|
December 31,
2013 and 2012)
|
(2,507)
|
|
(2,010)
|
|
|
|
Total Oxford Resource
Partners, LP (deficit) capital
|
(15,967)
|
|
7,583
|
|
Noncontrolling
interest
|
4,969
|
|
3,744
|
|
|
Total partners'
(deficit) capital
|
(10,998)
|
|
11,327
|
|
|
Total liabilities and
partners' (deficit) capital
|
$ 224,355
|
|
$ 220,899
|
OXFORD RESOURCE
PARTNERS, LP AND SUBSIDIARIES
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
FOR THE
YEARS ENDED DECEMBER 31, 2013 AND 2012
|
(in
thousands)
|
|
|
|
|
|
|
|
Year Ended
December 31,
|
|
|
2013
|
|
2012
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
|
Net loss
|
|
$
(23,700)
|
|
$
(26,053)
|
Adjustments to
reconcile net loss to net cash from operating
activities:
|
|
|
|
|
Depreciation,
depletion and amortization
|
|
48,081
|
|
51,170
|
Impairment and
restructuring expenses
|
|
1,761
|
|
15,650
|
Change in fair value
of warrants
|
|
(3,280)
|
|
-
|
Interest rate swap
and fuel contract adjustments to market
|
|
(12)
|
|
(144)
|
Non-cash interest
expense
|
|
4,094
|
|
-
|
Amortization and
write-off of deferred financing costs
|
|
3,986
|
|
2,175
|
Non-cash equity-based
compensation expense
|
|
1,441
|
|
1,262
|
Non-cash changes in
mine reclamation obligations
|
|
2,293
|
|
1,567
|
Amortization of
below-market coal sales contracts
|
|
(60)
|
|
(623)
|
(Gain) loss on
disposal of assets, net
|
|
(6,488)
|
|
(8,021)
|
Changes in assets and
liabilities:
|
|
|
|
|
Accounts
receivable
|
|
(6,058)
|
|
8,596
|
Inventory
|
|
(778)
|
|
(554)
|
Advance
royalties
|
|
(2,320)
|
|
(123)
|
Restricted
cash
|
|
(40)
|
|
1,811
|
Other
assets
|
|
147
|
|
(1,224)
|
Accounts
payable
|
|
(2,962)
|
|
1
|
Reclamation and mine
closure costs
|
|
(8,222)
|
|
(8,966)
|
Accrued taxes other
than income taxes
|
|
80
|
|
(519)
|
Accrued payroll and
related expenses
|
|
1,760
|
|
(905)
|
Other
liabilities
|
|
(47)
|
|
(1,513)
|
Net cash from
operating activities
|
|
9,676
|
|
33,587
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
|
Purchase of property
and equipment
|
|
(17,773)
|
|
(19,122)
|
Purchase of coal
reserves and land
|
|
(1,532)
|
|
(125)
|
Mine development
costs
|
|
(3,027)
|
|
(3,440)
|
Proceeds from sale of
assets
|
|
6,424
|
|
12,417
|
Insurance
proceeds
|
|
3,035
|
|
400
|
Net cash from
investing activities
|
|
(12,873)
|
|
(9,870)
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
|
Proceeds from
borrowings
|
|
150,000
|
|
-
|
Payments on
borrowings
|
|
(56,072)
|
|
(10,921)
|
Advances on line of
credit
|
|
53,588
|
|
51,000
|
Payments on line of
credit
|
|
(126,088)
|
|
(39,000)
|
Debt issuance
costs
|
|
(9,569)
|
|
(1,086)
|
Collateral for
reclamation bonds
|
|
(9,550)
|
|
-
|
Capital contributions
from partners
|
|
-
|
|
12
|
Distributions to
partners
|
|
-
|
|
(22,777)
|
Net cash from
financing activities
|
|
2,309
|
|
(22,772)
|
NET CHANGE IN
CASH
|
|
(888)
|
|
945
|
|
|
|
|
|
CASH, beginning of
the year
|
|
3,977
|
|
3,032
|
CASH, end of the
year
|
|
$
3,089
|
|
$
3,977
|
OXFORD RESOURCE
PARTNERS, LP AND SUBSIDIARIES
|
UNAUDITED
RECONCILIATION OF NET LOSS TO ADJUSTED
EBITDA1
|
FOR THE THREE AND
TWELVE MONTHS ENDED DECEMBER 31, 2013 AND 2012
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
Net
loss
|
|
$ (8,164)
|
|
$ (5,879)
|
|
$ (23,700)
|
|
$ (26,053)
|
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
Interest expense, net
of interest income
|
|
6,907
|
|
2,975
|
|
21,050
|
|
11,490
|
|
Depreciation,
depletion and amortization
|
|
10,321
|
|
12,151
|
|
48,081
|
|
51,170
|
|
Change in fair value
of warrants
|
|
(2,715)
|
|
-
|
|
(3,280)
|
|
-
|
|
Impairment and
restructuring expenses
|
|
749
|
|
1,807
|
|
1,761
|
|
15,650
|
|
(Gain) loss on
disposal of assets, net
|
|
106
|
|
(3,865)
|
|
(6,488)
|
|
(8,021)
|
|
Amortization of
below-market coal sales contracts
|
-
|
|
(80)
|
|
(60)
|
|
(623)
|
|
Non-cash equity-based
compensation expense
|
|
351
|
|
296
|
|
1,441
|
|
1,262
|
|
Non-cash changes in
mine reclamation obligations
|
610
|
|
378
|
|
2,293
|
|
1,567
|
|
Non-recurring
costs:
|
|
|
|
|
|
|
|
|
|
Debt refinancing
expenses
|
|
50
|
|
-
|
|
3,109
|
|
-
|
|
Other
|
|
-
|
|
237
|
|
(2,100)
|
|
1,475
|
Adjusted
EBITDA
|
|
$
8,215
|
|
$
8,020
|
|
$
42,107
|
|
$
47,917
|
1Adjusted
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
changes in mine reclamation obligations, 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 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
TWELVE MONTHS ENDED DECEMBER 31, 2013 AND 2012
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
Net
loss
|
|
$ (8,164)
|
|
$ (5,879)
|
|
$ (23,700)
|
|
$ (26,053)
|
|
|
|
|
|
|
|
|
|
|
Adjustment:
|
|
|
|
|
|
|
|
|
|
Impairment and
restructuring expenses
|
|
749
|
|
1,807
|
|
1,761
|
|
15,650
|
|
(Gain) loss on
disposal of assets, net
|
|
106
|
|
(3,865)
|
|
(6,488)
|
|
(8,021)
|
|
Change in fair value
of warrants
|
|
(2,715)
|
|
-
|
|
(3,280)
|
|
-
|
|
Debt refinancing
expenses
|
|
50
|
|
-
|
|
3,109
|
|
-
|
|
Write-off of deferred
financing costs
related to prior credit facility
|
|
-
|
|
-
|
|
808
|
|
-
|
Adjusted net
loss
|
|
$ (9,974)
|
|
$ (7,937)
|
|
$ (27,790)
|
|
$ (18,424)
|
|
2Adjusted
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
TWELVE MONTHS ENDED DECEMBER 31, 2013 AND 2012
|
(in thousands,
except per ton amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
Tons sold
|
1,585
|
|
1,699
|
|
6,602
|
|
7,350
|
|
|
|
|
|
|
|
|
|
|
Coal sales revenue
per ton
|
$ 51.09
|
|
$ 50.10
|
|
$ 50.93
|
|
$ 49.65
|
Amortization of
below-market coal sales contracts per ton
|
-
|
|
(0.05)
|
|
(0.01)
|
|
(0.08)
|
Cash coal sales
revenue per ton
|
51.09
|
|
50.05
|
|
50.92
|
|
49.57
|
Cash cost of coal
sales per ton
|
(44.48)
|
|
(44.28)
|
|
(43.99)
|
|
(42.51)
|
Cash margin per
ton
|
$
6.61
|
|
$
5.77
|
|
$
6.93
|
|
$
7.06
|
|
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