ST. LOUIS, Oct. 25, 2017 /PRNewswire/ -- Peabody (NYSE:
BTU) today announced its third quarter 2017 operating results,
including revenues of $1.48 billion,
income from continuing operations net of income taxes of
$233.7 million, net income
attributable to common stockholders of $201.4 million, diluted earnings per share from
continuing operations of $1.49 and
Adjusted EBITDA1 of $411.3
million.
"Peabody produced powerful results in the third quarter, with
the entire team delivering on multiple objectives set out earlier
this year," said Peabody President and Chief Executive Officer
Glenn Kellow. "The company
sharply increased mining results, improved metallurgical coal
volumes and costs, paid down debt, bought back shares, repriced our
term loan, enhanced shareholder return flexibility and took steps
to monetize non-core assets. We intend to continue to execute
on our stated financial approach as we generate cash, reduce debt,
invest wisely and return cash to shareholders."
Third Quarter 2017 Results
Revenues for the third quarter rose 22 percent from the prior
year to $1.48 billion on the strength
of $251.3 million in higher
Australia revenue, driven by a 60
percent increase in realized revenues per ton and a 9 percent
increase in metallurgical coal volumes.
Income from continuing operations net of income taxes totaled
$233.7 million reflecting robust
mining contributions as well as $194.5
million of depreciation, depletion and amortization
(DD&A), $40.4 million in net
interest expense and a net tax benefit of $84.1 million. DD&A includes
$41.5 million of expense related to
the amortization of certain intangible U.S. coal supply agreements.
Peabody's third quarter income tax benefit includes
recognition of $98 million of cash
refunds expected from carryback of approximately $500 million of its U.S. net operating loss
position.
Net income attributable to common stockholders totaled
$201.4 million. During the
quarter, 8 percent of preferred stock was converted to common
stock, bringing total conversions (as of Sept. 30, 2017) since Peabody's emergence to 47
percent and resulting in a non-cash preferred dividend of
$23.5 million. (Most income
statement measures are not comparable with prior-year periods due
to the adoption of fresh-start reporting as of April 1, 2017.)
Highlighting the strength of the diversified platform, both the
U.S. and the Australian platforms delivered substantial Adjusted
EBITDA contributions, resulting in third quarter Adjusted EBITDA of
$411.3 million, a $281.1 million improvement over the third quarter
of 2016.
Australian Adjusted EBITDA increased $226.5 million to $240.9
million, the highest quarterly Adjusted EBITDA contribution
in five years, on improved seaborne pricing. The Australian
thermal segment led the company in Adjusted EBITDA margins of 37
percent, while the Australian metallurgical segment led Adjusted
EBITDA contributions with $143.1
million.
Australian sales volumes totaled 8.7 million tons, including 3.5
million tons of metallurgical coal sold at an average price of
$119.55 per ton and 3.3 million tons
of export thermal coal sold at an average price of $69.31 per ton, with the remainder delivered
under domestic contracts.
As expected, metallurgical coal shipments increased 75 percent
compared to the cyclone-restricted second quarter 2017 shipments,
driven by record North Goonyella volumes, and the metallurgical
platform is on track to be within the company's full-year cost and
volume targets. As a result of both strong operational
performance and increased volumes, metallurgical costs per ton
declined significantly to $78.42 per
ton compared to $109.07 per ton in
the second quarter of 2017.
Strong demand for quality Australian thermal and metallurgical
coal resulted in thermal and metallurgical realized pricing per ton
increasing 42 percent and 68 percent, respectively, compared to the
third quarter of 2016. Australian thermal costs per ton
increased 19 percent compared to the prior year, primarily due to
geologic issues and ramp up following a longwall move at an
underground thermal mine.
U.S. operations contributed solid Adjusted EBITDA of
$196.7 million compared with
$217.3 million in the prior year on
lower realized pricing. On average, the U.S. operations
generated Adjusted EBITDA margins of 25 percent, with the Powder
River Basin earning 27 percent.
Liquidity at quarter end totaled $942.7
million, including $925.0
million in cash and cash equivalents and $17.7 million of accounts receivable
securitization capacity. In addition, the company had
$538.1 million in Restricted Cash
Collateral associated with the company's coal mine restoration
obligations and other activities. During the third quarter,
Peabody freed up approximately $25
million in cash collateral and remains focused on further
releasing restricted cash through a multi-pronged approach.
Following through on the company's capital allocation
initiatives, Peabody made voluntary payments of $394 million in the quarter, including repaying
$300 million in debt, executing
$69 million of share repurchases and
making $25 million in discretionary
pension contributions to reduce future potential funding
volatility. During the quarter, Peabody generated positive
operating cash flow of $239.6 million
and paid approximately $135 million
of Chapter 11 exit fees and settlement costs.
___________________________
Note: All comparisons are to third quarter 2016 unless otherwise
noted.
1 Adjusted EBITDA, revenues per ton, costs per ton and
margin per ton are non-GAAP financial measures. Please refer
to the tables and related notes in this press release for a
reconciliation of non-GAAP financial measures.
Progress on Financial Targets
"Peabody continues to take aggressive actions to reduce debt and
advance the shareholder return initiatives we outlined in August,"
said Peabody Executive Vice President and Chief Financial Officer
Amy Schwetz. "In addition to
reaching our 2017 deleveraging targets ahead of schedule, we have
executed share repurchases, repriced our term loan, lowered
interest expense, amended provisions of our credit agreement to
give us greater flexibility to accelerate shareholder returns and
advanced steps to free up incremental restricted cash."
- Liquidity: Peabody continues to believe the
appropriate level of liquidity is approximately $800 million. The company is evaluating
alternative sources of liquidity to release cash currently tied-up
as collateral.
- Deleveraging: Peabody has completed $300 million in voluntary debt repayments of its
term loan that were targeted to be completed by year-end 2017,
leaving remaining debt of approximately $1.66 billion. The company is targeting an
additional $200 million of debt
reduction by December 2018 with a
gross debt target of $1.2 billion to $1.4
billion over time.
- Return of Capital to Shareholders: In the few
months since Peabody announced its capital return initiatives, the
company has already executed $100
million of the $500 million
share repurchase program authorized by the company's board of
directors, including $69 million
executed in the third quarter.2 In addition, the board
of directors will regularly evaluate a sustainable dividend
program, targeting commencement in the first quarter of
2018.
In addition to the progress made on debt reduction and share
repurchases, Peabody also advanced several non-core asset sale
initiatives during the quarter. The company entered into an
agreement to sell the majority of its inactive Burton Mine and
related infrastructure for approximately $11
million, which will reduce Peabody's asset retirement
obligation by approximately $53
million and free up an estimated $30
million in restricted cash. The transaction is
conditional on a number of regulatory and other requirements and
completion is expected to take place in the first half of
2018. Also, as part of the company's long-term planning for
the closure of the Millennium Mine, Peabody has entered into an
agreement to sell its 50 percent interest in the coal handling and
preparation plant and associated rail loading facility utilized by
Millennium. The sale to the remaining partner reduces
associated operating costs and other obligations, while preserving
throughput capacity for Peabody's remaining production.
________________________________________
2
Repurchases will be subject to limitations in the company's debt
documents and may be made from time to time at the company's
discretion. The specific timing, price and size of purchases
will depend on the share price, general market and economic
conditions and other considerations. No expiration date has
been set for the repurchase program, and the program may be
suspended or discontinued at any time.
Industry Fundamentals
Seaborne thermal and metallurgical coal pricing remained well
above prior-year levels on continued strength in China and overall supply constraints.
While China only accounts for approximately 20 percent of total
seaborne coal demand, changes in Chinese demand tend to have
meaningful impacts on seaborne fundamentals for both thermal and
metallurgical coal. China
coal import demand has been high, increasing 24 million tonnes
year-to-date, with monthly imports in September at the highest
levels since 2014.
Seaborne thermal coal demand and pricing continue to be
supported by robust Asian demand primarily in China and South Korea. Chinese thermal
coal imports are up approximately 15 million tonnes through
September over the prior year on strong electricity generation that
exceeded domestic production growth. In addition, South
Korean imports have strengthened approximately 15 million tonnes
through September on strong demand as nuclear generation has been
curtailed. While import demand from India has been sluggish on increased domestic
coal usage, stockpiles are currently at multi-year lows, which is
supportive of additional imports in the fourth quarter. For
full-year 2017, Peabody now projects seaborne thermal coal demand
to increase approximately 10 to 15 million tonnes from 2016
levels.
Within seaborne metallurgical coal, fundamentals remain strong
as global steel production has risen approximately 5 percent led by
record Chinese steel production. In addition, Chinese steel
exports are down 30 percent year to date through September.
Metallurgical coal imports in China rose 9 million tonnes through September
on strong demand and limited domestic production. For
full-year 2017, Peabody now expects global seaborne metallurgical
coal demand to increase approximately 10 million tonnes compared to
the prior year.
Seaborne metallurgical coal prompt prices averaged $189 per tonne in the third quarter, up over
$50 per tonne from the prior year,
with the index-based settlement price for hard coking coal set at
approximately $170 per tonne.
In addition, Peabody set third quarter low-vol PCI pricing at
$115 per tonne with an additional
settlement later in the quarter of $127.50 per tonne. The company also
negotiated a fourth quarter low-vol PCI settlement of $127.50.
In the United States, industry
fundamentals were impacted by mild weather and weaker gas pricing
in the third quarter. Even as overall electricity demand
weakened year over year, utility consumption of Powder River Basin
coal rose approximately 8 percent above the prior year with natural
gas decreasing 12 percent (on 30 percent higher average natural gas
prices year over year through September). In addition, SPRB
stockpiles fell 8 percent from the prior year to 55 days of maximum
burn.
Cooling degree days in June, July and August were down
approximately 16 percent from the prior year in coal-heavy
regions. As a result, Peabody now expects U.S. coal
consumption from electricity generation to be largely flat for
full-year 2017 compared to 2016 levels. The company continues
to project that higher capacity utilization of U.S. coal plants
will offset the impact of approximately 15 million tons of lower
demand as a result of coal plant retirements.
Within U.S. policy, Peabody is encouraged by the continued
actions of the administration to advance a pro-energy economy and
recognize coal as an essential part of the energy mix. Over a
dozen policy issues have already been resolved, with an equal
number currently under review. Of the more notable items, the
Environmental Protection Agency recently proposed the repeal of the
"Clean Power Plan." In addition, the U.S. Department of
Energy proposed a rule for final action by the Federal Energy
Regulatory Commission on grid reliability and resilience
pricing. The proposed rule would require incentives to
preserve valuable baseload generating resources with considerable
onsite fuel storage, such as coal and nuclear power plants.
Peabody continues to support high-efficiency, low-emissions
technology and the advancement of carbon capture, use and storage
technologies to reduce emissions.
Financial Target Modifications
Turning to the remainder of 2017, Peabody expects a modest
easing in Powder River Basin sales volumes, partly offset by a
continued high level of Australian shipments.
In line with Peabody's layering contracting strategy, Peabody
has approximately 88 million tons of PRB coal priced for 2018 at an
average of $12.27 per ton. For
2018, Peabody has priced approximately 3 million tons of export
thermal coal at an average price of $72 per short ton.
Today's earnings call is scheduled for 10
a.m. CDT, and will be accompanied by a presentation
available at PeabodyEnergy.com.
Peabody is the world's largest private-sector coal
company. The company is also a leading voice in advocating
for sustainable mining, energy access and clean coal
technologies. Peabody serves metallurgical and thermal coal
customers in more than 25 countries on five continents. For
further information, visit PeabodyEnergy.com.
Contact:
Investors
Vic Svec
314.342.7768
Media
Beth Sutton
928.221.6792
Condensed
Consolidated Statements of Operations (Unaudited)
For the Quarters
Ended Sept. 30, 2017 and 2016
|
|
|
|
|
|
|
|
(In Millions, Except
Per Share Data)
|
|
|
|
2017
|
|
|
2016
|
|
|
|
Successor
|
|
|
Predecessor
|
|
|
|
Quarter Ended
September 30
|
|
|
|
|
|
|
|
|
Tons Sold
|
52.0
|
|
|
|
52.8
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
1,477.2
|
|
|
|
$
|
1,207.1
|
|
|
Operating Costs and
Expenses (1)
|
1,044.9
|
|
|
|
1,064.8
|
|
|
Depreciation,
Depletion and Amortization
|
194.5
|
|
|
|
117.8
|
|
|
Asset Retirement
Obligation Expenses
|
11.3
|
|
|
|
12.7
|
|
|
Selling and
Administrative Expenses
|
33.4
|
|
|
|
32.1
|
|
|
Restructuring
Charges
|
1.1
|
|
|
|
0.3
|
|
|
Other Operating
(Income) Loss:
|
|
|
|
|
|
Net Gain on Disposal
of Assets
|
(0.4)
|
|
|
|
(1.9)
|
|
|
(Income) Loss from
Equity Affiliates
|
(10.5)
|
|
|
|
2.9
|
|
|
Operating Profit
(Loss)
|
202.9
|
|
|
|
(21.6)
|
|
|
Interest
Expense
|
42.4
|
|
|
|
58.5
|
|
|
Loss on Early Debt
Extinguishment
|
12.9
|
|
|
|
—
|
|
|
Interest
Income
|
(2.0)
|
|
|
|
(1.3)
|
|
|
Reorganization Items,
Net
|
—
|
|
|
|
29.7
|
|
|
Income (Loss) from
Continuing Operations Before Income Taxes
|
149.6
|
|
|
|
(108.5)
|
|
|
Income Tax
Benefit
|
(84.1)
|
|
|
|
(10.8)
|
|
|
Income (Loss) from
Continuing Operations, Net of Income Taxes
|
233.7
|
|
|
|
(97.7)
|
|
|
Loss from
Discontinued Operations, Net of Income Taxes
|
(3.7)
|
|
|
|
(38.1)
|
|
|
Net Income
(Loss)
|
230.0
|
|
|
|
(135.8)
|
|
|
Less: Series A
Convertible Preferred Stock Dividends
|
23.5
|
|
|
|
—
|
|
|
Less: Net Income
Attributable to Noncontrolling Interests
|
5.1
|
|
|
|
1.8
|
|
|
Net Income (Loss)
Attributable to Common Stockholders
|
$
|
201.4
|
|
|
|
$
|
(137.6)
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
(2)
|
$
|
411.3
|
|
|
|
$
|
130.2
|
|
|
|
|
|
|
|
|
Diluted EPS - Income
(Loss) from Continuing Operations (3)(4)
|
$
|
1.49
|
|
|
|
$
|
(5.44)
|
|
|
|
|
|
|
|
|
|
Diluted EPS - Net
Income (Loss) Attributable to Common Stockholders
(3)
|
$
|
1.47
|
|
|
|
$
|
(7.53)
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Excludes items shown
separately.
|
(2)
|
Adjusted EBITDA is a
non-U.S. GAAP measure defined as income (loss) from continuing
operations before deducting net interest expense, income taxes,
asset retirement obligation expenses, depreciation, depletion and
amortization and reorganization items, net. Adjusted EBITDA
is also adjusted for the discrete items that management excluded in
analyzing the segments' operating performance as displayed in the
reconciliation. A reconciliation of income (loss) from
continuing operations, net of income taxes to Adjusted EBITDA is
included at the end of this document. Adjusted EBITDA is used by
management as one of the primary metrics to measure our operating
performance. Management also believes non-U.S. GAAP performance
measures are used by investors to measure our operating performance
and lenders to measure our ability to incur and service debt.
Adjusted EBITDA is not intended to serve as an alternative to U.S.
GAAP measures of performance and may not be comparable to
similarly-titled measures presented by other companies.
|
(3)
|
Diluted EPS is
calculated under the two-class method which treats participating
securities as having rights to earnings that otherwise would have
been available to common stockholders and assumes that
participating securities are not exercised or converted. As
such, weighted average diluted shares outstanding were 103.1
million for the Successor quarter ended September 30, 2017 and
excluded 34.2 million weighted average shares outstanding related
to the participating securities. Weighted average diluted
shares outstanding were 18.3 million for the Predecessor quarter
ended September 30, 2016.
|
(4)
|
Reflects income
(loss) from continuing operations, net of income taxes less
preferred stock dividends and net income attributable to
noncontrolling interests.
|
|
|
|
|
|
|
|
This information
is intended to be reviewed in conjunction with the company's
filings with the SEC.
|
Condensed
Consolidated Statements of Operations (Unaudited)
|
|
For the Nine Months Ended Sept. 30, 2017 and
2016
|
(In Millions, Except
Per Share Data)
|
|
|
|
|
|
|
|
2017
|
|
2016
|
|
|
Successor
|
|
|
Predecessor
|
|
Predecessor
|
|
|
April 2
through
September 30
|
|
|
January 1
through
April 1
|
|
Nine Months
Ended
September 30
|
Tons Sold
|
95.6
|
|
|
|
46.1
|
|
|
135.1
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
2,735.5
|
|
|
|
$
|
1,326.2
|
|
|
$
|
3,274.5
|
|
Operating Costs and
Expenses (1)
|
1,979.7
|
|
|
|
963.7
|
|
|
2,981.2
|
|
Depreciation,
Depletion and Amortization
|
342.8
|
|
|
|
119.9
|
|
|
345.5
|
|
Asset Retirement
Obligation Expenses
|
22.3
|
|
|
|
14.6
|
|
|
37.3
|
|
Selling and
Administrative Expenses
|
67.8
|
|
|
|
37.2
|
|
|
114.6
|
|
Restructuring
Charges
|
1.1
|
|
|
|
—
|
|
|
15.5
|
|
Other Operating
(Income) Loss:
|
|
|
|
|
|
|
Net Gain on Disposal
of Assets
|
(0.9)
|
|
|
|
(22.8)
|
|
|
(17.4)
|
|
Asset
Impairment
|
—
|
|
|
|
30.5
|
|
|
17.2
|
|
(Income) Loss from
Equity Affiliates
|
(26.2)
|
|
|
|
(15.0)
|
|
|
12.6
|
|
Operating Profit
(Loss)
|
348.9
|
|
|
|
198.1
|
|
|
(232.0)
|
|
Interest
Expense
|
83.8
|
|
|
|
32.9
|
|
|
243.7
|
|
Loss on Early Debt
Extinguishment
|
12.9
|
|
|
|
—
|
|
|
—
|
|
Interest
Income
|
(3.5)
|
|
|
|
(2.7)
|
|
|
(4.0)
|
|
Reorganization Items,
Net
|
—
|
|
|
|
627.2
|
|
|
125.1
|
|
Income (Loss) from
Continuing Operations Before Income Taxes
|
255.7
|
|
|
|
(459.3)
|
|
|
(596.8)
|
|
Income Tax
Benefit
|
(79.4)
|
|
|
|
(263.8)
|
|
|
(108.2)
|
|
Income (Loss) from
Continuing Operations, Net of Income Taxes
|
335.1
|
|
|
|
(195.5)
|
|
|
(488.6)
|
|
Loss from
Discontinued Operations, Net of Income Taxes
|
(6.4)
|
|
|
|
(16.2)
|
|
|
(44.5)
|
|
Net Income
(Loss)
|
328.7
|
|
|
|
(211.7)
|
|
|
(533.1)
|
|
Less: Series A
Convertible Preferred Stock Dividends
|
138.6
|
|
|
|
—
|
|
|
—
|
|
Less: Net Income
Attributable to Noncontrolling Interests
|
8.9
|
|
|
|
4.8
|
|
|
3.5
|
|
Net Income (Loss)
Attributable to Common Stockholders
|
$
|
181.2
|
|
|
|
$
|
(216.5)
|
|
|
$
|
(536.6)
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
(2)
|
$
|
729.1
|
|
|
|
$
|
341.3
|
|
|
$
|
238.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted EPS - Income
(Loss) from Continuing Operations
(3)(4)
|
$
|
1.37
|
|
|
|
$
|
(10.93)
|
|
|
$
|
(26.91)
|
|
|
|
|
|
|
|
|
|
Diluted EPS - Net
Income (Loss) Attributable to Common Stockholders
(3)
|
$
|
1.32
|
|
|
|
$
|
(11.81)
|
|
|
$
|
(29.34)
|
|
|
|
|
|
|
|
|
|
(1)
|
Excludes items shown
separately.
|
(2)
|
Adjusted EBITDA is a
non-U.S. GAAP measure defined as income (loss) from continuing
operations before deducting net interest expense, income taxes,
asset retirement obligation expenses, depreciation, depletion and
amortization and reorganization items, net. Adjusted EBITDA
is also adjusted for the discrete items that management excluded in
analyzing the segments' operating performance as displayed in the
reconciliation. A reconciliation of income (loss) from
continuing operations, net of income taxes to Adjusted EBITDA is
included at the end of this document. Adjusted EBITDA is used by
management as one of the primary metrics to measure our operating
performance. Management also believes non-U.S. GAAP performance
measures are used by investors to measure our operating performance
and lenders to measure our ability to incur and service debt.
Adjusted EBITDA is not intended to serve as an alternative to U.S.
GAAP measures of performance and may not be comparable to
similarly-titled measures presented by other companies.
|
(3)
|
Diluted EPS is
calculated under the two-class method which treats participating
securities as having rights to earnings that otherwise would have
been available to common stockholders and assumes that
participating securities are not exercised or converted. As
such, weighted average diluted shares outstanding were 100.2
million for the Successor period April 2 through September 30, 2017
and excluded 36.7 million weighted average shares outstanding
related to the participating securities. Weighted average
diluted shares outstanding were 18.3 million for the Predecessor
periods January 1 through April 1, 2017 and the nine months ended
September 30, 2016, respectively.
|
(4)
|
Reflects income
(loss) from continuing operations, net of income taxes less
preferred stock dividends and net income attributable to
noncontrolling interests.
|
|
|
|
|
|
|
|
|
This information
is intended to be reviewed in conjunction with the company's
filings with the SEC.
|
Supplemental
Financial Data (Unaudited)
|
|
|
|
|
|
|
For the Quarters
and Nine Months Ended Sept. 30, 2017 and 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2017
|
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
Successor
|
|
|
Predecessor
|
|
Successor
|
|
|
Predecessor
|
|
Combined
|
|
Predecessor
|
|
|
|
Quarter
Ended September
30
|
|
April 2
through
September 30
|
|
|
January 1
through April 1
|
|
Nine Months
Ended September
30
|
Revenue Summary (In
Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Powder River Basin
Mining Operations
|
$
|
420.9
|
|
|
|
$
|
419.6
|
|
|
$
|
786.3
|
|
|
|
$
|
394.3
|
|
|
$
|
1,180.6
|
|
|
$
|
1,062.2
|
|
|
|
Midwestern U.S.
Mining Operations
|
207.7
|
|
|
|
211.0
|
|
|
402.6
|
|
|
|
193.2
|
|
|
595.8
|
|
|
599.6
|
|
|
|
Western U.S. Mining
Operations
|
155.7
|
|
|
|
162.4
|
|
|
281.1
|
|
|
|
149.7
|
|
|
430.8
|
|
|
387.0
|
|
|
|
Total U.S. Mining
Operations
|
784.3
|
|
|
|
793.0
|
|
|
1,470.0
|
|
|
|
737.2
|
|
|
2,207.2
|
|
|
2,048.8
|
|
|
|
Australian
Metallurgical Mining Operations
|
415.9
|
|
|
|
232.5
|
|
|
703.7
|
|
|
|
328.9
|
|
|
1,032.6
|
|
|
682.8
|
|
|
|
Australian Thermal
Mining Operations
|
265.8
|
|
|
|
197.9
|
|
|
505.0
|
|
|
|
224.8
|
|
|
729.8
|
|
|
561.4
|
|
|
|
Total Australian
Mining Operations
|
681.7
|
|
|
|
430.4
|
|
|
1,208.7
|
|
|
|
553.7
|
|
|
1,762.4
|
|
|
1,244.2
|
|
|
|
Trading and Brokerage
Operations
|
19.4
|
|
|
|
2.7
|
|
|
24.6
|
|
|
|
15.0
|
|
|
39.6
|
|
|
16.5
|
|
|
|
Other
|
(8.2)
|
|
|
|
(19.0)
|
|
|
32.2
|
|
|
|
20.3
|
|
|
52.5
|
|
|
(35.0)
|
|
|
|
Total
|
$
|
1,477.2
|
|
|
|
$
|
1,207.1
|
|
|
$
|
2,735.5
|
|
|
|
$
|
1,326.2
|
|
|
$
|
4,061.7
|
|
|
$
|
3,274.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tons Sold (In
Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Powder River Basin
Mining Operations
|
33.7
|
|
|
|
33.0
|
|
|
62.2
|
|
|
|
31.0
|
|
|
93.2
|
|
|
80.0
|
|
|
|
Midwestern U.S.
Mining Operations
|
4.9
|
|
|
|
4.9
|
|
|
9.5
|
|
|
|
4.5
|
|
|
14.0
|
|
|
13.8
|
|
|
|
Western U.S. Mining
Operations
|
4.0
|
|
|
|
4.3
|
|
|
7.2
|
|
|
|
3.4
|
|
|
10.6
|
|
|
10.0
|
|
|
|
Total U.S. Mining
Operations
|
42.6
|
|
|
|
42.2
|
|
|
78.9
|
|
|
|
38.9
|
|
|
117.8
|
|
|
103.8
|
|
|
|
Australian
Metallurgical Mining Operations
|
3.5
|
|
|
|
3.2
|
|
|
5.5
|
|
|
|
2.2
|
|
|
7.7
|
|
|
10.1
|
|
|
|
Australian Thermal
Mining Operations
|
5.2
|
|
|
|
5.4
|
|
|
9.8
|
|
|
|
4.6
|
|
|
14.4
|
|
|
15.8
|
|
|
|
Total Australian
Mining Operations
|
8.7
|
|
|
|
8.6
|
|
|
15.3
|
|
|
|
6.8
|
|
|
22.1
|
|
|
25.9
|
|
|
|
Trading and Brokerage
Operations
|
0.7
|
|
|
|
2.0
|
|
|
1.4
|
|
|
|
0.4
|
|
|
1.8
|
|
|
5.4
|
|
|
|
Total
|
52.0
|
|
|
|
52.8
|
|
|
95.6
|
|
|
|
46.1
|
|
|
141.7
|
|
|
135.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues per Ton -
Mining Operations (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Powder River
Basin
|
$
|
12.48
|
|
|
|
$
|
12.73
|
|
|
$
|
12.65
|
|
|
|
$
|
12.70
|
|
|
$
|
12.67
|
|
|
$
|
13.28
|
|
|
|
Midwestern
U.S.
|
42.52
|
|
|
|
43.02
|
|
|
42.57
|
|
|
|
42.96
|
|
|
42.69
|
|
|
43.45
|
|
|
|
Western
U.S.
|
38.25
|
|
|
|
38.03
|
|
|
38.54
|
|
|
|
44.68
|
|
|
40.47
|
|
|
38.72
|
|
|
|
Total U.S.
|
18.38
|
|
|
|
18.82
|
|
|
18.63
|
|
|
|
18.96
|
|
|
18.73
|
|
|
19.74
|
|
|
|
Australian
Metallurgical
|
119.55
|
|
|
|
71.34
|
|
|
128.89
|
|
|
|
150.22
|
|
|
135.03
|
|
|
67.39
|
|
|
|
Australian
Thermal
|
51.78
|
|
|
|
36.53
|
|
|
51.65
|
|
|
|
48.65
|
|
|
50.69
|
|
|
35.60
|
|
|
|
Total
Australian
|
79.15
|
|
|
|
49.60
|
|
|
79.32
|
|
|
|
81.36
|
|
|
79.95
|
|
|
48.04
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Costs per
Ton - Mining Operations (1)(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Powder River
Basin
|
$
|
9.13
|
|
|
|
$
|
8.97
|
|
|
$
|
9.47
|
|
|
|
$
|
9.75
|
|
|
$
|
9.57
|
|
|
$
|
9.80
|
|
|
|
Midwestern
U.S.
|
32.39
|
|
|
|
30.96
|
|
|
32.42
|
|
|
|
31.84
|
|
|
32.23
|
|
|
30.96
|
|
|
|
Western
U.S.
|
29.77
|
|
|
|
30.00
|
|
|
27.65
|
|
|
|
29.76
|
|
|
28.31
|
|
|
30.39
|
|
|
|
Total U.S.
|
13.77
|
|
|
|
13.66
|
|
|
13.91
|
|
|
|
14.03
|
|
|
13.94
|
|
|
14.60
|
|
|
|
Australian
Metallurgical
|
78.42
|
|
|
|
81.93
|
|
|
89.53
|
|
|
|
100.16
|
|
|
92.57
|
|
|
79.34
|
|
|
|
Australian
Thermal
|
32.72
|
|
|
|
27.50
|
|
|
30.79
|
|
|
|
32.27
|
|
|
31.29
|
|
|
26.90
|
|
|
|
Total
Australian
|
51.18
|
|
|
|
47.94
|
|
|
51.83
|
|
|
|
54.15
|
|
|
52.55
|
|
|
47.41
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Margin per Ton
- Mining Operations (1)(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Powder River
Basin
|
$
|
3.35
|
|
|
|
$
|
3.76
|
|
|
$
|
3.18
|
|
|
|
$
|
2.95
|
|
|
$
|
3.10
|
|
|
$
|
3.48
|
|
|
|
Midwestern
U.S.
|
10.13
|
|
|
|
12.06
|
|
|
10.15
|
|
|
|
11.12
|
|
|
10.46
|
|
|
12.49
|
|
|
|
Western
U.S.
|
8.48
|
|
|
|
8.03
|
|
|
10.89
|
|
|
|
14.92
|
|
|
12.16
|
|
|
8.33
|
|
|
|
Total U.S.
|
4.61
|
|
|
|
5.16
|
|
|
4.72
|
|
|
|
4.93
|
|
|
4.79
|
|
|
5.14
|
|
|
|
Australian
Metallurgical
|
41.13
|
|
|
|
(10.59)
|
|
|
39.36
|
|
|
|
50.06
|
|
|
42.46
|
|
|
(11.95)
|
|
|
|
Australian
Thermal
|
19.06
|
|
|
|
9.03
|
|
|
20.86
|
|
|
|
16.38
|
|
|
19.40
|
|
|
8.70
|
|
|
|
Total
Australian
|
27.97
|
|
|
|
1.66
|
|
|
27.49
|
|
|
|
27.21
|
|
|
27.40
|
|
|
0.63
|
|
|
Note:
See footnote explanations on following page
|
Supplemental
Financial Data (Unaudited)
|
|
For the Quarters
and Nine Months Ended Sept. 30, 2017 and 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2017
|
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
Successor
|
|
|
Predecessor
|
|
Successor
|
|
|
Predecessor
|
|
Combined
|
|
Predecessor
|
|
|
|
Quarter
Ended September
30
|
|
April 2
through
September
30
|
|
|
January 1
through
April 1
|
|
Nine Months
Ended September
30
|
Other Supplemental
Financial Data (In Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA -
Powder River Basin Mining Operations
|
$
|
112.7
|
|
|
|
$
|
123.9
|
|
|
$
|
197.5
|
|
|
|
$
|
91.7
|
|
|
$
|
289.2
|
|
|
$
|
278.3
|
|
Adjusted EBITDA -
Midwestern U.S. Mining Operations
|
49.5
|
|
|
|
59.1
|
|
|
96.0
|
|
|
|
50.0
|
|
|
146.0
|
|
|
172.4
|
|
Adjusted EBITDA -
Western U.S. Mining Operations
|
34.5
|
|
|
|
34.3
|
|
|
79.4
|
|
|
|
50.0
|
|
|
129.4
|
|
|
83.2
|
|
Total U.S.
Mining Operations
|
196.7
|
|
|
|
217.3
|
|
|
372.9
|
|
|
|
191.7
|
|
|
564.6
|
|
|
533.9
|
|
Adjusted EBITDA -
Australian Metallurgical Mining Operations
|
143.1
|
|
|
|
(34.5)
|
|
|
215.0
|
|
|
|
109.6
|
|
|
324.6
|
|
|
(121.0)
|
|
Adjusted EBITDA -
Australian Thermal Mining Operations
|
97.8
|
|
|
|
48.9
|
|
|
203.7
|
|
|
|
75.6
|
|
|
279.3
|
|
|
137.2
|
|
Total
Australian Mining Operations
|
240.9
|
|
|
|
14.4
|
|
|
418.7
|
|
|
|
185.2
|
|
|
603.9
|
|
|
16.2
|
|
Adjusted EBITDA -
Trading and Brokerage
|
2.7
|
|
|
|
(9.4)
|
|
|
(2.4)
|
|
|
|
8.8
|
|
|
6.4
|
|
|
(41.3)
|
|
Selling and
Administrative Expenses (Excluding Debt Restructuring)
|
(33.4)
|
|
|
|
(32.1)
|
|
|
(67.8)
|
|
|
|
(37.2)
|
|
|
(105.0)
|
|
|
(93.1)
|
|
Other Operating
Costs, Net (3)
|
(1.8)
|
|
|
|
(12.3)
|
|
|
1.9
|
|
|
|
20.4
|
|
|
22.3
|
|
|
(32.5)
|
|
Restructuring
Charges
|
(1.1)
|
|
|
|
(0.3)
|
|
|
(1.1)
|
|
|
|
—
|
|
|
(1.1)
|
|
|
(15.5)
|
|
Gain on UMWA VEBA
Settlement
|
—
|
|
|
|
—
|
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
68.1
|
|
Corporate Hedging
Results
|
7.3
|
|
|
|
(47.4)
|
|
|
6.9
|
|
|
|
(27.6)
|
|
|
(20.7)
|
|
|
(197.8)
|
|
Adjusted
EBITDA
|
$
|
411.3
|
|
|
|
$
|
130.2
|
|
|
$
|
729.1
|
|
|
|
$
|
341.3
|
|
|
$
|
1,070.4
|
|
|
$
|
238.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Revenues per Ton,
Operating Costs per Ton and Gross Margin per Ton are non-U.S. GAAP
measures. Revenues per Ton and Gross Margin per Ton are
approximately equal to Revenues by segment and Adjusted EBITDA by
segment, respectively, divided by segment tons sold. Operating
Costs per Ton is equal to Revenues per Ton less Gross Margin per
Ton.
|
(2)
|
Includes
revenue-based production taxes and royalties; excludes
depreciation, depletion and amortization; asset retirement
obligation expenses; selling and administrative expenses;
restructuring charges; asset impairment; and certain other costs
related to post-mining activities.
|
(3)
|
Includes (income)
loss from equity affiliates (before the impact of related changes
in deferred tax asset valuation allowance and amortization of basis
difference), costs associated with post-mining activities, certain
asset sales, property management costs and revenues, coal royalty
expense, minimum charges on certain transportation-related
contracts and the Q1 2017 gain of $19.7 million recognized on the
sale of Dominion Terminal Associates.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
This information
is intended to be reviewed in conjunction with the company's
filings with the SEC.
|
Condensed
Consolidated Balance Sheets
|
|
As of Sept. 30,
2017, Jun. 30, 2017 and Dec. 31, 2016
|
|
|
|
|
|
|
|
|
|
(Dollars In
Millions)
|
|
|
|
|
|
|
|
|
|
|
Successor
|
|
|
Predecessor
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
Sept. 30,
2017
|
|
Jun. 30,
2017
|
|
|
Dec. 31,
2016
|
Cash and Cash
Equivalents
|
|
$
|
925.0
|
|
|
$
|
1,095.7
|
|
|
|
$
|
872.3
|
|
Restricted
Cash
|
|
7.8
|
|
|
—
|
|
|
|
54.3
|
|
Accounts Receivable,
Net
|
|
431.0
|
|
|
396.5
|
|
|
|
473.0
|
|
Inventories
|
|
307.7
|
|
|
313.5
|
|
|
|
203.7
|
|
Assets from Coal
Trading Activities, Net
|
|
2.5
|
|
|
0.6
|
|
|
|
0.7
|
|
Other Current
Assets
|
|
268.6
|
|
|
171.8
|
|
|
|
486.6
|
|
Total Current
Assets
|
|
1,942.6
|
|
|
1,978.1
|
|
|
|
2,090.6
|
|
Property, Plant,
Equipment and Mine Development, Net
|
|
5,082.6
|
|
|
5,214.2
|
|
|
|
8,776.7
|
|
Restricted Cash
Collateral
|
|
530.3
|
|
|
561.7
|
|
|
|
529.3
|
|
Investments and Other
Assets
|
|
517.9
|
|
|
561.2
|
|
|
|
381.1
|
|
Total Assets
|
|
$
|
8,073.4
|
|
|
$
|
8,315.2
|
|
|
|
$
|
11,777.7
|
|
|
|
|
|
|
|
|
|
|
Current Portion of
Long-Term Debt
|
|
$
|
47.1
|
|
|
$
|
189.0
|
|
|
|
$
|
20.2
|
|
Liabilities from Coal
Trading Activities, Net
|
|
1.0
|
|
|
1.2
|
|
|
|
1.2
|
|
Accounts Payable and
Accrued Expenses
|
|
1,065.0
|
|
|
1,147.0
|
|
|
|
990.4
|
|
Total Current
Liabilities
|
|
1,113.1
|
|
|
1,337.2
|
|
|
|
1,011.8
|
|
Long-Term Debt, Less
Current Portion
|
|
1,612.0
|
|
|
1,768.1
|
|
|
|
—
|
|
Deferred Income
Taxes
|
|
2.2
|
|
|
—
|
|
|
|
173.9
|
|
Asset Retirement
Obligations
|
|
636.0
|
|
|
635.0
|
|
|
|
717.8
|
|
Accrued
Postretirement Benefit Costs
|
|
745.8
|
|
|
746.3
|
|
|
|
756.3
|
|
Other Noncurrent
Liabilities
|
|
573.7
|
|
|
596.9
|
|
|
|
496.2
|
|
Total
Liabilities Not Subject to Compromise
|
|
4,682.8
|
|
|
5,083.5
|
|
|
|
3,156.0
|
|
Liabilities Subject
to Compromise
|
|
—
|
|
|
—
|
|
|
|
8,440.2
|
|
Total
Liabilities
|
|
4,682.8
|
|
|
5,083.5
|
|
|
|
11,596.2
|
|
|
|
|
|
|
|
|
|
|
Predecessor Common
Stock
|
|
—
|
|
|
—
|
|
|
|
0.2
|
|
Successor Series A
Convertible Preferred Stock
|
|
691.7
|
|
|
800.7
|
|
|
|
—
|
|
Successor Common
Stock
|
|
1.0
|
|
|
1.0
|
|
|
|
—
|
|
Additional Paid-in
Capital
|
|
2,425.9
|
|
|
2,286.3
|
|
|
|
2,422.0
|
|
Treasury
Stock
|
|
(69.2)
|
|
|
—
|
|
|
|
(371.8)
|
|
Retained Earnings
(Accumulated Deficit)
|
|
296.3
|
|
|
94.9
|
|
|
|
(1,399.5)
|
|
Accumulated Other
Comprehensive Income (Loss)
|
|
1.8
|
|
|
0.5
|
|
|
|
(477.0)
|
|
Peabody Energy
Corporation Stockholders' Equity
|
|
3,347.5
|
|
|
3,183.4
|
|
|
|
173.9
|
|
Noncontrolling
Interests
|
|
43.1
|
|
|
48.3
|
|
|
|
7.6
|
|
Total
Stockholders' Equity
|
|
3,390.6
|
|
|
3,231.7
|
|
|
|
181.5
|
|
Total Liabilities and Stockholders' Equity
|
|
$
|
8,073.4
|
|
|
$
|
8,315.2
|
|
|
|
$
|
11,777.7
|
|
|
|
|
|
|
|
|
|
|
|
|
This information
is intended to be reviewed in conjunction with the company's
filings with the SEC.
|
|
Condensed
Consolidated Statements of Cash Flows (Unaudited)
|
|
For the Quarters
Ended Sept. 30, 2017 and 2016
|
(Dollars In
Millions)
|
|
|
|
|
|
|
|
2017
|
|
|
2016
|
|
|
Successor
|
|
|
Predecessor
|
|
|
Quarter Ended
September 30
|
Cash Flows From
Operating Activities
|
|
|
|
|
|
Net Cash Provided
By Continuing Operations
|
|
$
|
253.4
|
|
|
|
$
|
169.7
|
|
Net Cash Used In
Discontinued Operations
|
|
(13.8)
|
|
|
|
(14.7)
|
|
Net Cash Provided
By Operating Activities
|
|
239.6
|
|
|
|
155.0
|
|
|
|
|
|
|
|
Cash Flows From
Investing Activities
|
|
|
|
|
|
Additions to
Property, Plant, Equipment and Mine Development
|
|
(22.7)
|
|
|
|
(18.5)
|
|
Changes in Accrued
Expenses Related to Capital Expenditures
|
|
0.2
|
|
|
|
1.6
|
|
Federal Coal Lease
Expenditures
|
|
—
|
|
|
|
(248.5)
|
|
Proceeds from
Disposal of Assets
|
|
2.7
|
|
|
|
18.7
|
|
Contributions to
Joint Ventures
|
|
(113.7)
|
|
|
|
(82.0)
|
|
Distributions from
Joint Ventures
|
|
112.5
|
|
|
|
73.2
|
|
Advances to Related
Parties
|
|
(3.2)
|
|
|
|
(21.1)
|
|
Repayments of Loans
from Related Parties
|
|
8.7
|
|
|
|
11.1
|
|
Other, Net
|
|
(0.9)
|
|
|
|
0.1
|
|
Net Cash Used In
Investing Activities
|
|
(16.4)
|
|
|
|
(265.4)
|
|
Cash Flows From
Financing Activities
|
|
|
|
|
|
Proceeds from
Long-Term Debt
|
|
—
|
|
|
|
7.8
|
|
Repayments of
Long-Term Debt
|
|
(308.3)
|
|
|
|
(2.2)
|
|
Payment of Deferred
Financing Costs
|
|
(6.1)
|
|
|
|
(0.3)
|
|
Common Stock
Repurchase
|
|
(69.2)
|
|
|
|
—
|
|
Distributions to
Noncontrolling Interests
|
|
(10.3)
|
|
|
|
(1.4)
|
|
Net Cash (Used In)
Provided By Financing Activities
|
|
(393.9)
|
|
|
|
3.9
|
|
Net Change in Cash
and Cash Equivalents
|
|
(170.7)
|
|
|
|
(106.5)
|
|
Cash and Cash
Equivalents at Beginning of Period
|
|
1,095.7
|
|
|
|
1,274.3
|
|
Cash and Cash
Equivalents at End of Period
|
|
$
|
925.0
|
|
|
|
$
|
1,167.8
|
|
|
|
|
|
|
|
This information
is intended to be reviewed in conjunction with the company's
filings with the SEC.
|
Condensed
Consolidated Statements of Cash Flows (Unaudited)
|
|
For the Nine
Months Ended Sept. 30, 2017 and 2016
|
(Dollars In
Millions)
|
|
|
|
|
|
|
|
2017
|
|
2016
|
|
|
Successor
|
|
|
Predecessor
|
|
Combined
|
|
Predecessor
|
|
|
April 2
through
September 30
|
|
|
January 1
through
April 1
|
|
Nine Months
Ended
September 30
|
|
|
|
|
|
Cash Flows From
Operating Activities
|
|
|
|
|
|
|
|
|
|
Net Cash Provided
By (Used In) Continuing Operations
|
|
$
|
344.7
|
|
|
|
$
|
222.2
|
|
|
$
|
566.9
|
|
|
$
|
(257.9)
|
|
Net Cash Used In
Discontinued Operations
|
|
(14.4)
|
|
|
|
(8.2)
|
|
|
(22.6)
|
|
|
(18.9)
|
|
Net Cash Provided
By (Used In) Operating Activities
|
|
330.3
|
|
|
|
214.0
|
|
|
544.3
|
|
|
(276.8)
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flows From
Investing Activities
|
|
|
|
|
|
|
|
|
|
Additions to
Property, Plant, Equipment and Mine Development
|
|
(68.6)
|
|
|
|
(32.8)
|
|
|
(101.4)
|
|
|
(56.6)
|
|
Changes in Accrued
Expenses Related to Capital Expenditures
|
|
1.8
|
|
|
|
(1.4)
|
|
|
0.4
|
|
|
(5.5)
|
|
Federal Coal Lease
Expenditures
|
|
—
|
|
|
|
(0.5)
|
|
|
(0.5)
|
|
|
(249.0)
|
|
Proceeds from
Disposal of Assets
|
|
5.2
|
|
|
|
24.3
|
|
|
29.5
|
|
|
134.7
|
|
Contributions to
Joint Ventures
|
|
(210.0)
|
|
|
|
(95.4)
|
|
|
(305.4)
|
|
|
(241.7)
|
|
Distributions from
Joint Ventures
|
|
208.0
|
|
|
|
90.5
|
|
|
298.5
|
|
|
236.7
|
|
Advances to Related
Parties
|
|
(4.1)
|
|
|
|
(0.4)
|
|
|
(4.5)
|
|
|
(23.3)
|
|
Repayments of Loans
from Related Parties
|
|
35.2
|
|
|
|
31.1
|
|
|
66.3
|
|
|
13.2
|
|
Other, Net
|
|
(2.4)
|
|
|
|
(0.3)
|
|
|
(2.7)
|
|
|
(8.2)
|
|
Net Cash (Used In)
Provided By Investing Activities
|
|
(34.9)
|
|
|
|
15.1
|
|
|
(19.8)
|
|
|
(199.7)
|
|
Cash Flows From
Financing Activities
|
|
|
|
|
|
|
|
|
|
Proceeds from
Long-Term Debt
|
|
—
|
|
|
|
1,000.0
|
|
|
1,000.0
|
|
|
1,429.8
|
|
Successor Notes
Issuance Proceeds into Escrow
|
|
—
|
|
|
|
(1,000.0)
|
|
|
(1,000.0)
|
|
|
—
|
|
Repayments of
Long-Term Debt
|
|
(332.1)
|
|
|
|
(2.1)
|
|
|
(334.2)
|
|
|
(11.2)
|
|
Payment of Deferred
Financing Costs
|
|
(6.1)
|
|
|
|
(45.4)
|
|
|
(51.5)
|
|
|
(29.8)
|
|
Common Stock
Repurchase
|
|
(69.2)
|
|
|
|
—
|
|
|
(69.2)
|
|
|
—
|
|
Distributions to
Noncontrolling Interests
|
|
(16.7)
|
|
|
|
(0.1)
|
|
|
(16.8)
|
|
|
(3.9)
|
|
Other, Net
|
|
—
|
|
|
|
(0.1)
|
|
|
(0.1)
|
|
|
(1.9)
|
|
Net Cash (Used In)
Provided By Financing Activities
|
|
(424.1)
|
|
|
|
(47.7)
|
|
|
(471.8)
|
|
|
1,383.0
|
|
Net Change in Cash
and Cash Equivalents
|
|
(128.7)
|
|
|
|
181.4
|
|
|
52.7
|
|
|
906.5
|
|
Cash and Cash
Equivalents at Beginning of Period
|
|
1,053.7
|
|
|
|
872.3
|
|
|
872.3
|
|
|
261.3
|
|
Cash and Cash
Equivalents at End of Period
|
|
$
|
925.0
|
|
|
|
$
|
1,053.7
|
|
|
$
|
925.0
|
|
|
$
|
1,167.8
|
|
|
|
|
|
|
|
|
|
|
|
This information
is intended to be reviewed in conjunction with the company's
filings with the SEC.
|
Reconciliation of
Non-U.S. GAAP Financial Measures (Unaudited)
|
|
For the Quarters
Ended Sept. 30, 2017 and 2016
|
|
|
|
|
|
|
(Dollars In
Millions)
|
|
|
|
|
|
|
2017
|
|
|
2016
|
|
|
Successor
|
|
|
Predecessor
|
|
|
Quarter Ended
September 30
|
|
|
|
|
|
|
Income (Loss) from
Continuing Operations, Net of Income Taxes
|
$
|
233.7
|
|
|
|
$
|
(97.7)
|
|
|
Depreciation,
Depletion and Amortization
|
194.5
|
|
|
|
117.8
|
|
|
Asset Retirement
Obligation Expenses
|
11.3
|
|
|
|
12.7
|
|
|
Change in Deferred
Tax Asset Valuation Allowance Related to Equity
Affiliates
|
(3.4)
|
|
|
|
(0.6)
|
|
|
Interest
Expense
|
42.4
|
|
|
|
58.5
|
|
|
Loss on Early Debt
Extinguishment
|
12.9
|
|
|
|
—
|
|
|
Interest
Income
|
(2.0)
|
|
|
|
(1.3)
|
|
|
Reorganization Items,
Net
|
—
|
|
|
|
29.7
|
|
|
Unrealized Losses on
Economic Hedges
|
10.8
|
|
|
|
21.9
|
|
|
Unrealized Losses on
Non-Coal Trading Derivative Contracts
|
1.7
|
|
|
|
—
|
|
|
Take-or-Pay
Contract-Based Intangible Recognition
|
(6.5)
|
|
|
|
—
|
|
|
Income Tax
Benefit
|
(84.1)
|
|
|
|
(10.8)
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
|
411.3
|
|
|
|
$
|
130.2
|
|
|
|
|
|
|
|
This information
is intended to be reviewed in conjunction with the company's
filings with the SEC.
|
Reconciliation of
Non-U.S. GAAP Financial Measures (Unaudited)
|
|
|
For the Nine
Months Ended Sept. 30, 2017 and 2016
|
|
|
|
|
|
|
|
|
(Dollars In
Millions)
|
|
|
|
|
|
|
|
|
2017
|
|
2016
|
|
|
Successor
|
|
|
Predecessor
|
|
Predecessor
|
|
|
April 2
through
September 30
|
|
|
January 1
through
April 1
|
|
Nine Months
Ended
September 30
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (Loss) from
Continuing Operations, Net of Income Taxes
|
$
|
335.1
|
|
|
|
$
|
(195.5)
|
|
|
$
|
(488.6)
|
|
|
Depreciation,
Depletion and Amortization
|
342.8
|
|
|
|
119.9
|
|
|
345.5
|
|
|
Asset Retirement
Obligation Expenses
|
22.3
|
|
|
|
14.6
|
|
|
37.3
|
|
|
Selling and
Administrative Expenses Related to Debt Restructuring
|
—
|
|
|
|
—
|
|
|
21.5
|
|
|
Change in Deferred
Tax Asset Valuation Allowance Related to Equity
Affiliates
|
(7.7)
|
|
|
|
(5.2)
|
|
|
(0.6)
|
|
|
Asset
Impairment
|
—
|
|
|
|
30.5
|
|
|
17.2
|
|
|
Interest
Expense
|
83.8
|
|
|
|
32.9
|
|
|
243.7
|
|
|
Loss on Early Debt
Extinguishment
|
12.9
|
|
|
|
—
|
|
|
—
|
|
|
Interest
Income
|
(3.5)
|
|
|
|
(2.7)
|
|
|
(4.0)
|
|
|
Reorganization Items,
Net
|
—
|
|
|
|
627.2
|
|
|
125.1
|
|
|
Break Fees Related to
Terminated Asset Sales
|
(28.0)
|
|
|
|
—
|
|
|
—
|
|
|
Unrealized Losses
(Gains) on Economic Hedges
|
1.4
|
|
|
|
(16.6)
|
|
|
49.1
|
|
|
Unrealized Gains on
Non-Coal Trading Derivative Contracts
|
(1.5)
|
|
|
|
—
|
|
|
—
|
|
|
Coal Inventory
Revaluation
|
67.3
|
|
|
|
—
|
|
|
—
|
|
|
Take-or-Pay
Contract-Based Intangible Recognition
|
(16.4)
|
|
|
|
—
|
|
|
—
|
|
|
Income Tax
Benefit
|
(79.4)
|
|
|
|
(263.8)
|
|
|
(108.2)
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
|
729.1
|
|
|
|
$
|
341.3
|
|
|
$
|
238.0
|
|
|
|
|
|
|
|
|
|
This information
is intended to be reviewed in conjunction with the company's
filings with the SEC.
|
Guidance
Targets
|
|
|
|
Sales Volumes
(Short Tons)
|
Capital
Expenditures
|
$165 – $195
million
|
PRB
|
120 – 125
million
|
|
|
ILB
|
18 – 19
million
|
Quarterly SG&A
Expense
|
~$35
million
|
Western
|
13 – 14
million
|
|
|
Total U.S.
|
151 - 158
million
|
Quarterly Interest
Expense
|
$37 – $39
million
|
|
|
|
|
Aus.
Metallurgical1
|
11.5 – 12.0
million
|
Q4 2017 Cost
Sensitivities4
|
|
Aus. Export
Thermal2
|
12.5 – 13.0
million
|
$0.05 Decrease in A$
FX Rate5
|
+ ~$25 – $28
million
|
Aus. Domestic
Thermal
|
~7 million
|
$0.05 Increase in A$
FX Rate5
|
~<$5
million
|
Total
Australia
|
31 – 32
million
|
Fuel (+/-
$10/barrel)
|
+/- ~$8
million
|
|
|
|
|
U.S. Operations -
Revenues Per Ton
|
2017 Priced
Position
|
|
PRB
|
$12.50 –
$12.75
|
PRB Average
Price/Ton
|
~$12.60
|
ILB
|
$42.00 –
$43.00
|
ILB Average
Price/Ton
|
~$42.65
|
Total U.S.
|
$18.55 –
$18.75
|
Australia Export
Thermal
|
~11.5 million
tons
|
|
|
|
|
|
|
Australia Export
Thermal
Average Price/Short Ton
|
~$68
|
U.S. Operations -
Costs Per Ton
|
|
|
PRB
|
$9.50 –
$9.75
|
|
|
ILB
|
$32.00 –
$33.00
|
2018 Priced
Position
|
|
Total U.S.
|
$13.85 –
$14.25
|
PRB Average
Price/Ton
|
$12.27
|
|
|
ILB Average
Price/Ton
|
$42.30
|
|
Australia Export
Thermal
|
~3 million
tons
|
Australia
Operations - Costs per Ton (USD)3
|
|
|
|
Metallurgical
|
$85 – $95
|
Australia Export
Thermal
Average Price/Short Ton
|
~$72
|
Thermal
|
$31 – $35
|
Total
Australia
|
$51 – $54
|
|
|
|
Essentially all of
Peabody's expected 2017 U.S. sales volume is priced as of Sept. 30,
2017;
~75% – 80% of 2018 volumes are priced (based on approximately 150
million tons);
approximately 35% of 2019 volumes are priced (based on
approximately 150 million tons).
|
1 Metallurgical coal sales volumes may range from
~50%-60% PCI and ~40%-50% coking coal (including semi-hard and
semi-soft coking coals). Approximately 55% of seaborne
metallurgical sales may be executed on a spot basis, with the
remainder priced under quarterly contracts or linked to an
index. The company also has exposure to approximately 2
million tons of metallurgical coal related to the Middlemount Mine,
a 50/50 joint venture accounted for in (Income) Loss from Equity
Affiliates.
Peabody's North Goonyella and Coppabella mines typically receive
the PLV HCC index quoted price and set the PLV PCI benchmark,
respectively, with the remainder of products sold at discounts to
these values based on coal qualities and properties. On a
weighted-average basis across all metallurgical products, Peabody
typically realizes approximately 85%-90% of the PLV HCC index
quoted price for its coking products, and 90%-95% of the premium LV
PCI benchmark price for its PCI products.
2 A portion of Peabody's seaborne thermal coal
products sell at or above the Newcastle index, with the remainder
sold at discounts relative to the Newcastle index based on coal
qualities and properties. On a weighted-average basis across
all seaborne thermal products, Peabody typically realizes
approximately 90%-95% of the Newcastle index price.
3 Assumes 4Q 2017 average A$ FX rate of $0.79.
4 Sensitivities reflect approximate impacts of
changes in variables on financial performance. When realized,
actual impacts may differ significantly.
5 As of Sept. 30, 2017,
Peabody had purchased average rate call options in aggregate
notional amount of approximately AUD $450
million to manage market price volatility associated with
the Australian dollar with strike price levels of approximately
$0.78 and settlement dates through
December 2017. Sensitivities provided are relative to an
assumed average A$ FX exchange rate of $0.79 for remainder of 2017. For 2018, Peabody
purchased average rate call options in aggregate notional amount of
approximately AUD $675 million with
strike price levels of approximately $0.85 and settlement dates through June
2018.
Note 1: Peabody classifies its Australian Metallurgical or
Thermal Mining segments based on the primary customer base and
reserve type. A small portion of the coal mined by the Australian
Metallurgical Mining segment is of a thermal grade and vice versa.
Peabody may market some of its metallurgical coal products as a
thermal product from time to time depending on industry
conditions. Per ton metrics presented are non-GAAP
measures. Due to the volatility and variability of certain
items needed to reconcile these measures to their nearest GAAP
measure, no reconciliation can be provided without unreasonable
cost or effort.
Note 2: A sensitivity to changes in seaborne pricing should
consider Peabody's estimated split of PCI and coking coal products,
the ratio of PLV PCI benchmark to PLV HCC index quoted price, the
weighted average discounts across all products to the applicable
PLV HCC index quoted price or PLV PCI benchmark or Newcastle index
prices, in addition to impacts on sales-related costs in
Australia, and applicable
conversions between short tons and metric tonnes as
necessary.
Note 3: As of Oct. 20, 2017,
Peabody would have approximately 133.7 million shares of common
stock outstanding, assuming full conversion of Peabody's preferred
stock (including make-whole shares issuable upon conversion of the
preferred stock). The fully converted shares issued value
excludes approximately 3.5 million shares underlying unvested
equity awards under Peabody's long-term incentive plan. As of
Oct. 20, 2017, holders of
approximately 51% of preferred stock issued at emergence had
converted their shares into common stock. Post the
Oct. 31, 2017, PIK dividend, every 1
million preferred shares converted equals ~ $7.5 million of non-cash dividends.
Forward Looking Statement
This press release contains forward-looking statements within
the meaning of the securities laws. Forward-looking statements can
be identified by the fact that they do not relate strictly to
historical or current facts. They often include words or variation
of words such as "expects," "anticipates," "intends," "plans,"
"believes," "seeks," "estimates," "projects," "forecasts,"
"targets," "would," "will," "should," "goal," "could" or "may" or
other similar expressions. Forward-looking statements provide
management's current expectations or predictions of future
conditions, events or results. All statements that address
operating performance, events or developments that we expect or
anticipate will occur in the future are forward-looking statements.
They may include estimates of revenues, income, earnings per share,
cost savings, capital expenditures, dividends, share repurchases,
liquidity, capital structure, market share, industry volume, or
other financial items, descriptions of management's plans or
objectives for future operations, or descriptions of assumptions
underlying any of the above. All forward-looking statements speak
only as of the date they are made and reflect the company's good
faith beliefs, assumptions and expectations, but they are not
guarantees of future performance or events. Furthermore, the
company disclaims any obligation to publicly update or revise any
forward-looking statement, except as required by law. By their
nature, forward-looking statements are subject to risks and
uncertainties that could cause actual results to differ materially
from those suggested by the forward-looking statements. Factors
that might cause such differences include, but are not limited to,
a variety of economic, competitive and regulatory factors, many of
which are beyond the company's control, that are described in our
Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2016, as amended on July 10, 2017 and Aug. 14,
2017, and in Exhibit 99.2 to the Company's Current Report on
Form 8-K filed with the SEC on April 11,
2017, as well as additional factors we may describe from
time to time in other filings with the SEC. You may get such
filings for free at our website at www.peabodyenergy.com. You
should understand that it is not possible to predict or identify
all such factors and, consequently, you should not consider any
such list to be a complete set of all potential risks or
uncertainties.
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SOURCE Peabody