LEXINGTON, KY-(Marketwired - Mar 10, 2017) - Rhino Resource
Partners LP (OTCQB: RHNO) ("Rhino" or the "Partnership") announced
today its financial and operating results for the quarter ended
December 31, 2016. For the quarter, the Partnership reported a net
loss of $3.8 million and Adjusted EBITDA of $4.5 million, compared
to a net loss of $34.0 million and Adjusted EBITDA of $1.9 million
in the fourth quarter of 2015. Approximately $0.6 million of asset
impairment and related charges impacted the net loss for the
quarter ended December 31, 2016. Approximately $27.1 million of
asset impairment and related charges impacted the net loss for the
quarter ended December 31, 2015. Diluted net loss per common unit
was $0.41 for the quarter compared to diluted net loss per common
unit of $11.43 for the fourth quarter of 2015. Total revenues for
the quarter were $46.4 million, with coal sales generating $44.1
million of the total, compared to total revenues of $36.7 million
and coal revenues of $31.6 million in the fourth quarter of 2015.
(Refer to "Reconciliations of Adjusted EBITDA" included later in
this release for reconciliations to the most directly comparable
GAAP financial measures).The Partnership continued the suspension
of the cash distribution for its common units for the current
quarter. No distributions have been paid for common or subordinated
units for the quarter ended December 31, 2016. Rick Boone,
President and Chief Executive Officer of Rhino's general partner,
stated, "The recent equity transaction with Royal Energy Resources,
Inc. (OTCQB: ROYE) ("Royal") and Yorktown Partners LLC further
reduced our debt and positioned Rhino as a financially strong
competitor in the world-wide coal markets. We have been able to
reduce our debt by approximately $34 million during the current
year as our focus on cash generation and strategic transactions
with supportive partners have resulted in a strong balance sheet
for Rhino. We have met the requirements to extend the maturity of
our credit agreement to December 2017 and we continue to work
toward extending or restructuring our credit agreement beyond its
current maturity date.The resurgence in coal prices, particularly
met coal prices, toward the end of 2016 provided us the opportunity
to execute favorable sales contracts for 2017 that provide us with
substantial upside opportunity if we can continue to control our
costs. We have fully sold out our Central Appalachia and Pennyrile
operations for 2017 and we have base-load sales at our Castle
Valley operation in the Western Bituminous region and our Hopedale
operation in Northern Appalachia for next year. We continue to
explore additional met coal sales from our Central Appalachia
operations that could provide us with incremental upside to our
projected 2017 financial results.We have continued our commitment
to safety as we look to increase our coal production to meet our
committed sales during 2017. In addition, our focus on
environmental responsibility is evident as our Central Appalachia
operations received an award from the West Virginia Coal
Association for "Exemplary Water Quality Enhancement and
Protection." We are very proud of the employees that earned this
award.All of our Central Appalachia mining complexes are currently
operating and we plan to continue operations during the remainder
of 2017 as we have fully sold out our current steam and met coal
production capacity at our Central Appalachia operations for 2017.
We may add additional production capacity for 2017 in Central
Appalachia if we can obtain coal sales at prices that justify the
capital expansion dollars required to increase our production
capabilities. Productivity improvements at Pennyrile have lowered
costs and improved the coal recovery rates at this operation
compared to the prior year. Pennyrile has been a positive cash flow
producer for Rhino during 2016 as we have increased production and
sales to meet our contracted positions. Pennyrile is fully
contracted for 2017 at current production levels with 1.3 million
tons forecast to be produced and sold next year. We are confident
Pennyrile will be a positive cash flow provider for the Partnership
during 2017 at these production and sales levels. Pennyrile gives
us additional diversification and we expect it to be a significant
generator of stable cash flow as it ramps up to its full potential
run rate of two million tons per year.In Northern Appalachia, our
Hopedale operation has continued to fulfill its contracted sales
orders as customers have accepted their shipments. We agreed to a
sales contract for Hopedale during the fourth quarter of 2016 that
provides for a base-load sales level for this operation for the
remainder of 2017. We continue to seek additional sales contracts
for Hopedale to bring it to full production capacity for 2017. Our
Sands Hill operation in Northern Appalachia continued to produce
positive results in the fourth quarter as we continue to control
costs as we prepare this operation to cease coal production toward
the end of first quarter of 2017. At Rhino Western, we have fully
contracted sales for the first half of 2017 at our Castle Valley
operation as well as a base level of sales for the last six months
of 2017. We continue to explore additional sales for our remaining
open positions at Castle Valley and we expect this operation to be
a positive cash flow contributor during 2017 at the current sales
level booked for the upcoming year.Overall, we are encouraged by
the rally in prices in the coal markets and we believe upside
exists for Rhino next year as we continue to focus on cost and cash
generation to bring added value to our unitholders."Coal Operations
UpdatePennyrilePennyrile's long-term sales contracts have committed
sales of 1.3 million tons in 2017. Productivity improvements at
Pennyrile have lowered costs and improved the coal recovery rates
at this operation. Rhino's Pennyrile operations produced
approximately 322,000 tons during the fourth quarter while coal
sales were approximately 286,000 tons. Pennyrile's sales are fully
contracted through 2017 at current production levels. Northern
AppalachiaFor the fourth quarter, year-over-year coal revenues per
ton decreased $6.82 to $48.33 due to a higher mix of lower priced
tons from our Sands Hill operation. Sales volume was 103,000 tons,
versus 139,000 tons in the prior year and 149,000 tons in the prior
quarter. Sales were lower year-to-year due to decreased sales
volumes from our Hopedale operation due to weak steam coal market
conditions in Northern Appalachia caused by low-priced natural gas.
Rhino WesternCoal revenues per ton in the quarter was $38.61 versus
$36.96 in the prior year and $39.00 in the prior quarter. Coal
revenues per ton increased due to higher contracted prices for coal
from Rhino's Castle Valley mine. Sales volume was 247,000 tons
versus 218,000 tons in the prior year and 185,000 tons in the prior
quarter. Cost of operations per ton was $32.96 versus $34.96 in the
prior year and $28.82 in the prior quarter. Castle Valley had lower
maintenance and other expenses in the prior quarter, which led to
the quarter-to-quarter decrease in cost of operations per ton.
Central AppalachiaCoal revenues per ton in the quarter was $60.14
versus $63.20 in the prior year and $57.91 in the prior quarter.
Metallurgical coal revenue per ton in the quarter was $63.97 versus
$97.30 in the prior year and $63.95 in the prior quarter. Steam
coal revenue in the quarter was $50.98 per ton versus $42.84 in the
prior year and $52.07 in the prior quarter. Sales volume was
266,000 tons in the quarter versus 75,000 in the prior year and
180,000 tons in the prior quarter. Cost of operations per ton in
the quarter was $33.88 versus $89.68 in the prior year and $38.51
in the prior quarter. Option AgreementOn December 30, 2016, the
Partnership entered into an option agreement (the "Option
Agreement") with Royal, Rhino Resources Partners Holdings, LLC
("Rhino Holdings"), an entity wholly owned by certain investment
partnerships managed by Yorktown Partners LLC ("Yorktown"), and the
Rhino's general partner. Upon execution of the Option Agreement,
the Partnership received an option (the "Call Option") from Rhino
Holdings to acquire substantially all of the outstanding common
stock of Armstrong Energy, Inc. ("Armstrong Energy") that is
currently owned by investment partnerships managed by Yorktown. The
Option Agreement stipulates that the Partnership can exercise the
Call Option no earlier than January 1, 2018 and no later than
December 31, 2019. In exchange for Rhino Holdings granting the
Partnership the Call Option, the Partnership issued 5.0 million
common units, representing limited partner interests in the
Partnership (the "Call Option Premium Units") to Rhino Holdings
upon the execution of the Option Agreement. The Option Agreement
stipulates the Partnership can exercise the Call Option and
purchase the common stock of Armstrong Energy in exchange for a
number of common units to be issued to Rhino Holdings, which when
added with the Call Option Premium Units, will result in Rhino
Holdings owning 51% of the fully diluted common units of the
Partnership. The purchase of Armstrong Energy through the exercise
of the Call Option would also require Royal to transfer a 51%
ownership interest in the General Partner to Rhino Holdings. The
Partnership's ability to exercise the Call Option is conditioned
upon (i) sixty (60) days having passed since the entry by Armstrong
Energy into an agreement with its bondholders to restructure its
bonds and (ii) the amendment of the Partnership's revolving credit
facility to permit the acquisition of Armstrong Energy.The Option
Agreement also contains an option (the "Put Option") granted by the
Partnership to Rhino Holdings whereby Rhino Holdings has the right,
but not the obligation, to cause the Partnership to purchase
substantially all of the outstanding common stock of Armstrong
Energy from Rhino Holdings under the same terms and conditions
discussed above for the Call Option. The exercise of the Put Option
is dependent upon (i) the entry by Armstrong Energy into an
agreement with its bondholders to restructure its bonds and (ii)
the termination and repayment of any outstanding balance under the
Partnership's revolving credit facility.The Option Agreement
supersedes and terminates the Equity Exchange Agreement entered
into by the Partnership, Royal, Rhino Holdings, Yorktown and the
General Partner on September 30, 2016.Series A Preferred Unit
Purchase AgreementOn December 30, 2016, the Partnership entered
into a Series A Preferred Unit Purchase Agreement (the "Preferred
Unit Agreement") with Weston Energy LLC ("Weston"), an entity
wholly owned by certain investment partnerships managed by
Yorktown, and Royal. Under the Preferred Unit Agreement, Weston and
Royal agreed to purchase 1,300,000 and 200,000, respectively, of
Series A Preferred Units representing limited partner interests in
the Partnership ("Series A Preferred Units") at a price of $10.00
per Series A Preferred Unit. Weston and Royal paid cash of $11.0
million and $2.0 million, respectively, to the Partnership and
Weston assigned to the Partnership a $2.0 million note receivable
from Royal originally dated September 30, 2016.Debt AmendmentIn
December, 2016, Rhino entered into a seventh amendment of its
amended and restated credit agreement (the "Seventh Amendment").
The Seventh Amendment allowed for the Series A Preferred Units
discussed above. The Seventh Amendment immediately reduced the
revolving credit commitments by $11.0 million and provides for
additional revolving credit commitment reductions of $2.0 million
each on June 30, 2017 and September 30, 2017. A condition precedent
to the effectiveness of the Seventh Amendment was the receipt of
the $13.0 million of cash proceeds received by Rhino from the
issuance of the Series A Preferred Units discussed above, which was
used to repay outstanding borrowings under the revolving credit
facility. Per the Seventh Amendment, the receipt of $13.0 million
cash proceeds fulfills the required Royal equity contributions as
outlined in the previous amendments to the Partnership's credit
agreement. In addition, the receipt of the $13 million satisfied
the conditions to extend the maturity date of Rhino's credit
facility to December 31, 2017 as outlined in previous amendments to
the credit agreement.Debt ClassificationThe Partnership evaluated
its amended and restated senior secured credit facility at December
31, 2016 to determine whether this debt liability should be
classified as a long-term or current liability on Rhino's
consolidated statements of financial position. As discussed above,
as of December 31, 2016, the Partnership had met the conditions to
extend the maturity date of its amended and restated senior secured
credit facility to December 31, 2017. The Partnership is working
with its lenders to extend the maturity date of its amended and
restated credit agreement beyond December 31, 2017 while also
exploring other possible financing alternatives to replace its
existing amended and restated credit agreement. Since the credit
facility has an expiration date of December 31, 2017, the
Partnership determined that its credit facility debt liability of
$10.0 million at December 31, 2016 should be classified as a
current liability on its consolidated statements of financial
position. The classification of the Partnership's credit facility
balance as a current liability raises substantial doubt of the
Partnership's ability to continue as a going concern for the next
twelve months. Since the credit facility has an expiration date of
December 31, 2017, the Partnership will have to secure alternative
financing to replace its credit facility by the expiration date of
December 2017 in order to continue its normal business operations
and meet its obligations as they come due. Capital
ExpendituresMaintenance capital expenditures for the fourth quarter
were approximately $1.5 million. Expansion capital expenditures for
the fourth quarter were approximately $0.2 million. Sales
CommitmentsThe table below displays Rhino's committed coal sales
for the periods indicated.
Evaluating Financial ResultsRhino management uses a variety of
financial measurements to analyze the Partnership's performance,
including (1) Adjusted EBITDA, (2) coal revenues per ton and (3)
cost of operations per ton.Adjusted EBITDA. Adjusted EBITDA
represents net income before deducting interest expense, income
taxes and depreciation, depletion and amortization, while also
excluding certain non-cash and/or non-recurring items. Adjusted
EBITDA is used by management primarily as a measure of the
operating performance of the Partnership's segments. Adjusted
EBITDA should not be considered an alternative to net income,
income from operations, cash flows from operating activities or any
other measure of financial performance or liquidity presented in
accordance with GAAP. Because not all companies calculate Adjusted
EBITDA identically, the Partnership's calculation may not be
comparable to similarly titled measures of other companies. (Refer
to "Reconciliations of Adjusted EBITDA" included later in this
release for reconciliations of Adjusted EBITDA to the most directly
comparable GAAP financial measures).Coal Revenues Per Ton. Coal
revenues per ton sold represents coal revenues divided by tons of
coal sold. Coal revenues per ton is a key indicator of Rhino's
effectiveness in obtaining favorable prices for the Partnership's
product.Cost of Operations Per Ton. Cost of operations per ton sold
represents the cost of operations (exclusive of depreciation,
depletion and amortization) divided by tons of coal sold. Rhino
management uses this measurement as a key indicator of the
efficiency of operations. Overview of Financial ResultsResults for
the three months ended December 31, 2016 included:Adjusted EBITDA
from continuing operations of $4.5 million and net loss from
continuing operations of $3.0 million compared to Adjusted EBITDA
from continuing operations of $(0.9) million and a net loss from
continuing operations of $36.4 million in the fourth quarter of
2015. The Partnership recorded approximately $0.6 million of asset
impairment and related charges that impacted the net loss for the
quarter ended December 31, 2016. The Partnership recorded
approximately $27.1 million of asset impairment and related charges
that impacted the net loss for the quarter ended December 31, 2015.
Including net loss from discontinued operations of approximately
$0.8 million, total net loss for the three months ended December
31, 2016 was $3.8 million while Adjusted EBITDA was not impacted.
Including net income from discontinued operations of approximately
$2.4 million, total net loss and Adjusted EBITDA for the three
months ended December 31, 2015 were $34.0 million and $1.9 million,
respectively. Basic and diluted net loss per common unit from
continuing operations of $0.33 compared to basic and diluted net
loss per common unit from continuing operations of $12.24 for the
fourth quarter of 2015. Coal sales were 0.9 million tons, which was
an increase of 33.5% compared to the fourth quarter of 2015,
primarily due to increased sales from Central Appalachia
operations. Total revenues and coal revenues of $46.4 million and
$44.1 million, respectively, compared to $36.7 million and $31.6
million, respectively, for the same period of 2015. Coal revenues
per ton of $48.91 compared to $46.81 for the fourth quarter of
2015, an increase of 4.5%. Cost of operations from continuing
operations of $37.3 million compared to $33.6 million for the same
period of 2015. Cost of operations per ton from continuing
operations of $41.45 compared to $49.77 for the fourth quarter of
2015, a decrease of 16.7%. Total coal revenues increased
approximately 39.5% year-to-year primarily due to increased sales
from the Partnership's Central Appalachia operations as the
majority of the operations in Central Appalachia were idle during
the fourth quarter of 2015. Coal revenues per ton increased
primarily due to a higher mix of higher priced tons sold from
Central Appalachia compared to the same period of 2015. Total cost
of operations increased primarily due to production at the Central
Appalachia mining operations being active in the fourth quarter of
2016, which were primarily idle in the fourth quarter of 2015. The
decrease in the cost of operations on a per ton basis was primarily
due to lower costs per ton in Central Appalachia as the majority of
operations were idle in the fourth quarter of 2015, which resulted
in higher per ton costs in the fourth quarter of 2015. In addition,
Pennyrile continued to increase and optimize production, which
resulted in lower costs per ton on a year-to-year basis.Results for
the year ended December 31, 2016 included:Adjusted EBITDA from
continuing operations of $19.4 million and net loss from continuing
operations of $12.0 million compared to Adjusted EBITDA from
continuing operations of $4.8 million and net loss from continuing
operations of $63.3 million for the year ended December 31, 2015.
Net loss for the year ended December 31, 2016 was impacted by $2.6
million of asset impairment and related charges and a $1.7 million
gain from the extinguishment of debt. Net loss for the year ended
December 31, 2015 was impacted by $31.6 million of asset impairment
and related charges. Including net loss from discontinued
operations of approximately $118.7 million, total net loss for the
year ended December 31, 2016 was $130.7 million while Adjusted
EBITDA was $21.3 million including the results from discontinued
operations. Including income from discontinued operations of
approximately $8.1 million, total net loss for the year ended
December 31, 2015 was $55.2 million, while Adjusted EBITDA was
$15.0 million including the results from discontinued operations.
Basic and diluted net loss per common unit from continuing
operations of $1.54 compared to basic and diluted net loss per
common unit from continuing operations of $21.32 for the year ended
December 31, 2015. Coal sales were 3.3 million tons compared to 3.5
million for the year ended December 31, 2015. Total revenues and
coal revenues of $170.8 million and $160.9 million, respectively,
compared to $195.0 million and $171.1 million, respectively, for
the same period of 2015. Coal revenues per ton of $48.63 compared
to $49.35 for the year ended December 31, 2015, a decrease of 1.5%.
Cost of operations from continuing operations of $135.4 million
compared to $173.3 million for the same period of 2015. Cost of
operations per ton from continuing operations of $40.95 compared to
$50.00 for the year ended December 31, 2015, a decrease of 18.1%.
Total coal revenues decreased approximately 6.0% primarily due to
fewer steam coal tons sold in Northern Appalachia and Central
Appalachia, partially offset by increased sales from the Pennyrile
mine in the Illinois Basin. Coal revenues per ton decreased
primarily due to the result of a larger mix of lower priced tons
sold from Pennyrile. Total cost of operations decreased primarily
due to lower costs in Central Appalachia and Northern Appalachia
due to reduced production in these regions in response to weak
market demand, partially offset by increased costs from higher
production at the Pennyrile mine in the Illinois Basin. The
decrease in the cost of operations on a per ton basis was primarily
due to a decrease from the Pennyrile mine in the Illinois Basin as
the Partnership increased and optimized production during the
twelve months ended December 31, 2016 compared to the same period
in 2015, as well as the $3.9 million benefit in Northern Appalachia
during the twelve months ended December 31, 2016 from the prior
service cost benefit resulting from the cancellation of the
postretirement benefit plan at the Hopedale operation.Segment
InformationThe Partnership produces and markets coal from surface
and underground mines in Kentucky, West Virginia, Ohio and Utah.
For the quarter ended December 31, 2016, the Partnership had four
reportable business segments: Central Appalachia, Northern
Appalachia, Rhino Western and Illinois Basin. Additionally, the
Partnership has an Other category that includes its ancillary
businesses.
* Percentages, totals and per ton amounts are calculated based
on actual amounts and not the rounded amounts presented in this
table.** The activities performed by Rhino's ancillary businesses
do not directly relate to coal production. As a result, coal
revenues per ton and cost of operations per ton are not presented
for the Other category.Additional information for the Central
Appalachia segment detailing the types of coal produced and sold,
premium high-vol met coal and steam coal, is presented below. Note
that the Partnership's Northern Appalachia, Rhino Western and
Illinois Basin segments currently produce and sell only steam
coal.
* Percentages are calculated based on actual amounts and not the
rounded amounts presented in this table.Fourth Quarter 2016
Financial and Operational Results Conference CallThe Partnership
will not host a conference call this quarter. Any inquiries can be
made to the Partnership's investor relations department. About
Rhino Resource Partners LP Rhino Resource Partners LP is a
diversified energy limited partnership that is focused on coal and
energy related assets and activities, including energy
infrastructure investments. Rhino produces metallurgical and steam
coal in a variety of basins throughout the United States.
Additional information regarding Rhino is available on its web site
- RhinoLP.com.Forward Looking StatementsExcept 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 Rhino expects, believes or
anticipates will or may occur in the future are forward-looking
statements, including the statements and information included under
the heading "Coal Operations Update." These forward-looking
statements are based on Rhino's current expectations and beliefs
concerning future developments and their potential effect on
Rhino's business, operating results, financial condition and
similar matters. While management believes that these
forward-looking statements are reasonable as and when made, there
can be no assurance that future developments affecting Rhino will
turn out as Rhino anticipates. Whether actual results and
developments in the future will conform to expectations is subject
to significant risks, uncertainties and assumptions, many of which
are beyond Rhino's control or ability to predict. Therefore, actual
results and developments could materially differ from Rhino's
historical experience, present expectations and what is expressed,
implied or forecast in these forward-looking statements. Important
factors that could cause actual results to differ materially from
those in the forward-looking statements include, but are not
limited to, the following: Rhino's inability to obtain additional
financing necessary to fund its capital expenditures, meet working
capital needs and maintain and grow its operations or its inability
to obtain alternative financing upon the expiration of its credit
facility; Rhino's future levels of indebtedness, liquidity and
compliance with debt covenants; volatility and recent declines in
the price of Rhino's common units; sustained depressed levels of or
decline in coal prices, which depend upon several factors such as
the supply of domestic and foreign coal, the demand for domestic
and foreign coal, governmental regulations, price and availability
of alternative fuels for electricity generation and prevailing
economic conditions; declines in demand for electricity and coal;
current and future environmental laws and regulations, which could
materially increase operating costs or limit Rhino's ability to
produce and sell coal; extensive government regulation of mine
operations, especially with respect to mine safety and health,
which imposes significant actual and potential costs; difficulties
in obtaining and/or renewing permits necessary for operations; the
availability and prices of competing electricity generation fuels;
a variety of operating risks, such as unfavorable geologic
conditions, adverse weather conditions and natural disasters,
mining and processing equipment unavailability, failures and
unexpected maintenance problems and accidents, including fire and
explosions from methane; poor mining conditions resulting from the
effects of prior mining; the availability and costs of key supplies
and commodities such as steel, diesel fuel and explosives;
fluctuations in transportation costs or disruptions in
transportation services, which could increase competition or impair
Rhino's ability to supply coal; a shortage of skilled labor,
increased labor costs or work stoppages; Rhino's ability to secure
or acquire new or replacement high-quality coal reserves that are
economically recoverable; material inaccuracies in Rhino's
estimates of coal reserves and non-reserve coal deposits; existing
and future laws and regulations regulating the emission of sulfur
dioxide and other compounds, which could affect coal consumers and
reduce demand for coal; federal and state laws restricting the
emissions of greenhouse gases; Rhino's ability to acquire or
failure to maintain, obtain or renew surety bonds used to secure
obligations to reclaim mined property; Rhino's dependence on a few
customers and its ability to find and retain customers under
favorable supply contracts; changes in consumption patterns by
utilities away from the use of coal, such as changes resulting from
low natural gas prices; changes in governmental regulation of the
electric utility industry; defects in title in properties that
Rhino owns or losses of any of its leasehold interests; Rhino's
ability to retain and attract senior management and other key
personnel; material inaccuracy of assumptions underlying
reclamation and mine closure obligations; and weakness in global
economic conditions.Other factors that could cause Rhino's actual
results to differ from its projected results are described in its
filings with the Securities and Exchange Commission, including its
Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and
Current Reports on Form 8-K. Readers are cautioned not to place
undue reliance on forward-looking statements, which speak only as
of the date hereof. Rhino undertakes no obligation to publicly
update or revise any forward-looking statements after the date they
are made, whether as a result of new information, future events or
otherwise, unless required by law.
Reconciliations of Adjusted EBITDAThe following tables present
reconciliations of Adjusted EBITDA to the most directly comparable
GAAP financial measures for each of the periods indicated (note:
DD&A refers to depreciation, depletion and amortization).
* Totals may not foot due to rounding.(1) Rhino recorded a gain
of approximately $1.7 million for the extinguishment of debt. Rhino
executed an agreement with the third party that held approximately
$2.8 million of other notes payable to settle the debt for $1.1
million of cash consideration, which resulted in an approximate
$1.7 million gain from the extinguishment of this debt.(2) During
the three months and year ended December 31, 2016, the Partnership
recorded $0.6 million and $2.6 million, respectively, of non-cash
impairment and other non-cash charges related to the Partnership'
previously owned Deane mining complex. Approximately $2.0 million
related to impairment of the note receivable that was recorded in
2015 relating to the sale of the Deane mining complex and the
additional $0.6 million related to other non-recoverable items
associated with the sale of the Deane mining complex.During the
three months and year ended December 31, 2015, the Partnership
recorded $27.1 million and $31.6 million, respectively, of non-cash
charges related to asset impairment charges associated with our
various mining properties and other assets that were evaluated for
impairment and reduced to our estimate of fair value during the
fourth quarter of 2015. During the year ended December 31, 2015, we
also incurred other non-cash charges that included an approximate
$0.5 million charge for accounts receivable allowances for certain
customers in Central Appalachia.
* Totals may not foot due to rounding.(1) During the three
months and year ended December 31, 2016, the Partnership recorded
$0.6 million and $2.6 million, respectively, of non-cash impairment
and other non-cash charges related to the Partnership' previously
owned Deane mining complex. Approximately $2.0 million related to
impairment of the note receivable that was recorded in 2015
relating to the sale of the Deane mining complex and the additional
$0.6 million related to other non-recoverable items associated with
the sale of the Deane mining complex.During the three months and
year ended December 31, 2015, the Partnership recorded $27.1
million and $31.6 million, respectively, of non-cash charges
related to asset impairment charges associated with our various
mining properties and other assets that were evaluated for
impairment and reduced to our estimate of fair value during the
fourth quarter of 2015. Please see our more detailed discussion of
these asset impairment and related charges that is included earlier
in this release. During the year ended December 31, 2015, we also
incurred other non-cash charges that included an approximate $0.5
million charge for accounts receivable allowances for certain
customers in Central Appalachia. (2) Rhino recorded a gain of
approximately $1.7 million for the extinguishment of debt. Rhino
executed an agreement with the third party that held approximately
$2.8 million of other notes payable to settle the debt for $1.1
million of cash consideration, which resulted in an approximate
$1.7 million gain from the extinguishment of this debt. Contact
InformationInvestor Contact:
Scott Morris
+1
859.519.3622
smorris@rhinolp.com