Natural Resource Partners L.P. (NYSE:NRP) today reported
first quarter of 2018 results as follows:
Three Months Ended
March 31,
Increase
(Decrease)
Percentage
Change
(In thousands,
except per unit data)
2018 2017 Net income from continuing
operations $ 26,088 $ 6,111 $ 19,977 327 % Net income 26,074 5,904
20,170 342 % Net income attributable to common unitholders and
general partner 18,574 3,404 15,170 446 % Basic net income per
common unit 1.49 0.28 1.21 432 % Diluted net income per common unit
1.15 0.28 0.87 311 % Adjusted EBITDA (1) 54,886 51,285 3,601 7 %
Net cash provided by operating activities of continuing operations
20,211 20,489 (278 ) (1 )% Net cash used in investing activities of
continuing operations (173 ) (2,068 ) 1,895 92 % Net cash provided
by (used in) financing activities of continuing operations (28,713
) 54,153 (82,866 ) (153 )% Distributable Cash Flow (1) 20,845
18,547 2,298 12 % Free Cash Flow (1) 19,302 18,712 590 3 %
Craig Nunez, President and Chief Operating Officer, commented:
"We delivered solid operating performance and continued to generate
significant amounts of cash during the first quarter. As our
leverage profile continues to improve, we remain focused on
maximizing cash generation, strengthening our balance sheet and
increasing our liquidity."
At the end of the first quarter of 2018, NRP had liquidity of
$76.2 million, consisting of $21.2 million in cash and $55.0
million of borrowing capacity available under its credit facility.
NRP's consolidated Debt-to-Adjusted EBITDA ratio at March 31,
2018 was 3.5x.
NRP continues to focus on reducing its debt while maintaining
sufficient liquidity to operate its business. NRP's goal is to
achieve a leverage ratio, defined as Debt-to-Adjusted EBITDA, of
less than 3.0x, while maintaining minimum liquidity of $100
million, which may consist of a combination of cash and/or
available borrowing capacity.
With respect to the first quarter of 2018, NRP declared a cash
distribution of $0.45 per common unit and a distribution of $7.5
million in cash on NRP’s preferred units. NRP's distribution
coverage ratio over the last twelve months was 6.0x before taking
into account the $30 million annual distribution on NRP's preferred
units, and 4.6x after taking into account the preferred unit
distribution.
______________________
(1) See "Non-GAAP
Financial Measures" and reconciliation tables at the end of this
release.
Segment Information
Coal Royalty and Other
Three Months Ended
March 31,
Increase
(Decrease)
Percentage
Change
(In
thousands)
2018 2017 Net income $ 40,728 $ 35,094
$ 5,634 16 % Adjusted EBITDA (1) 46,070 43,845 2,225 5 % Net cash
provided by operating activities of continuing operations 38,793
37,932 861 2 % Net cash provided by investing activities of
continuing operations 1,143 6 1,137 18,950 % Net cash provided by
financing activities of continuing operations — 16 (16 ) (100 )%
Distributable Cash Flow (1) 39,936 37,937 1,999 5 % Free Cash Flow
(1) 39,280 38,346 934 2 %
______________________
(1) See "Non-GAAP
Financial Measures" and reconciliation tables at the end of this
release.
Net income from the Coal Royalty and Other segment increased
primarily due to lower depletion expense as a result of lower
production and prior year asset impairment. Overall coal related
revenues were essentially flat, as the impact of lower production
was offset by higher coal prices. Distributable cash flow increased
during the period primarily as a result of increased cash flow from
our natural gas royalty properties.
Soda Ash
Three Months Ended
March 31,
Increase
(Decrease)
Percentage
Change
(In
thousands)
2018 2017 Net income $ 9,621 $ 10,294 $
(673 ) (7 )% Adjusted EBITDA (1) 12,250 12,250 — — % Net cash
provided by operating activities of continuing operations 10,153
12,250 (2,097 ) (17 )% Net cash provided by investing activities of
continuing operations 2,097 — 2,097 100 % Distributable Cash Flow
(1) 12,250 12,250 — — % Free Cash Flow (1) 12,250 12,250 — — %
______________________
(1) See "Non-GAAP
Financial Measures" and reconciliation tables at the end of this
release.
Net income from the Soda Ash segment decreased primarily as a
result of lower international sales and higher selling, general and
administrative costs.
Construction Aggregates
Three Months Ended
March 31,
Increase
(Decrease)
Percentage
Change
(In
thousands)
2018 2017 Net loss $ (1,975 ) $ (1,539
) $ (436 ) (28 )% Adjusted EBITDA (1) 902 2,375 (1,473 ) (62 )% Net
cash provided by operating activities of continuing operations
2,797 4,046 (1,249 ) (31 )% Net cash used in investing activities
of continuing operations (3,413 ) (2,074 ) (1,339 ) (65 )% Net cash
used in financing activities of continuing operations (49 ) (96 )
47 49 % Distributable Cash Flow (1) 191 2,099 (1,908 ) (91 )% Free
Cash Flow (1) (696 ) 1,855 (2,551 ) (138 )%
______________________
(1) See "Non-GAAP
Financial Measures" and reconciliation tables at the end of this
release.
Net loss from the Construction Aggregates segment increased
primarily due to unfavorable weather and higher repair and
maintenance and fuel costs. Distributable cash flow decreased as a
result of these factors as well as increased capital
expenditures.
Corporate and Finance
Three Months Ended
March 31,
Increase
(Decrease)
Percentage
Change
(In
thousands)
2018 2017 Net loss $ (22,286 ) $
(37,738 ) $ 15,452 41 % Adjusted EBITDA (1) (4,336 ) (7,185 ) 2,849
40 % Net cash used in operating activities of continuing operations
(31,532 ) (33,739 ) 2,207 7 % Net cash provided by (used in)
financing activities of continuing operations (28,664 ) 54,233
(82,897 ) (153 )% Distributable Cash Flow (1) (31,532 ) (33,739 )
2,207 7 % Free Cash Flow (1) (31,532 ) (33,739 ) 2,207 7 %
______________________
(1) See "Non-GAAP
Financial Measures" and reconciliation tables at the end of this
release.
Net loss from corporate and financing activities decreased
primarily due to prior year debt modification expense and
performance based awards related to the completion of our
recapitalization transactions in March 2017. In addition, interest
expense decreased as a result of debt reduction. Distributable cash
flow increased primarily as a result of prior year payment of
performance based awards related to the completion of our
recapitalization transactions and lower G&A costs, partially
offset by the timing of interest payments on NRP's 2022 Senior
Notes.
Conference Call
A conference call will be held today at 10:00 a.m. ET. To join
the conference call, dial (844) 379-6938 and provide the conference
code 55454888. Investors may also listen to the call via the
Investor Relations section of the NRP website at www.nrplp.com.
Audio replays of the conference call will be available for
approximately one week. To access the replay, dial (855) 859-2056
and provide the conference code 55454888 or visit the Investor
Relations section of NRP’s website.
Company Profile
Natural Resource Partners L.P., a master limited
partnership headquartered in Houston, TX, is a
diversified natural resource company that owns interests in coal,
aggregates and industrial minerals across the United States. A
large percentage of NRP's revenues are generated from royalties and
other passive income. In addition, NRP owns a construction
aggregates company and an equity investment in Ciner Wyoming, a
trona/soda ash operation.
For additional information, please contact Kathy H. Roberts at
713-751-7555 or kroberts@nrplp.com. Further information about NRP
is available on the partnership’s website at
http://www.nrplp.com.
Forward-Looking Statements
This press release includes “forward-looking statements” as
defined by the Securities and Exchange Commission. 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. These statements are
based on certain assumptions made by the partnership based on its
experience and perception of historical trends, current conditions,
expected future developments and other factors it believes are
appropriate in the circumstances. Such statements are subject to a
number of assumptions, risks and uncertainties, many of which are
beyond the control of the partnership. These risks include, but are
not limited to, commodity prices; decreases in demand for coal,
aggregates and industrial minerals, including trona/soda ash;
changes in operating conditions and costs; production cuts by our
lessees; unanticipated geologic problems; our liquidity, leverage
and access to capital and financing sources; changes in the
legislative or regulatory environment, litigation risk, and other
factors detailed in Natural Resource Partners’ Securities and
Exchange Commission filings. Natural Resource Partners L.P. has no
obligation to publicly update or revise any forward-looking
statement, whether as a result of new information, future events or
otherwise.
Non-GAAP Financial Measures
“Distributable Cash Flow” is a non-GAAP financial measure
that we define as net cash provided by operating activities of
continuing operations plus distributions from unconsolidated
investment in excess of cumulative earnings, proceeds from sales of
assets, including those included in discontinued operations, and
return of long-term contract receivables (including affiliate);
less maintenance capital expenditures and distributions to
non-controlling interest. DCF is not a measure of financial
performance under GAAP and should not be considered as an
alternative to cash flows from operating, investing or financing
activities. DCF may not be calculated the same for us as for other
companies. In addition, DCF presented below is not calculated or
presented on the same basis as Distributable Cash Flow as defined
in our partnership agreement, which is used as a metric to
determine whether we are able to increase quarterly distributions
to our common unitholders. DCF is a supplemental liquidity measure
used by our management and by external users of our financial
statements, such as investors, commercial banks, research analysts
and others to assess the Partnership's ability to make cash
distributions to our common and preferred unitholders and our
general partner and repay debt.
“Free Cash Flow” is a non-GAAP financial measure that we
define as net cash provided by operating activities of continuing
operations plus distributions from unconsolidated investment in
excess of cumulative earnings and return of long-term contract
receivables (including affiliate); less maintenance and expansion
capital expenditures, cash flow used in mitigation payments and
acquisition costs classified as financing activities and
distributions to non-controlling interest. FCF is not a measure of
financial performance under GAAP and should not be considered as an
alternative to cash flows from operating, investing or financing
activities. FCF may not be calculated the same for us as for other
companies. FCF is a supplemental liquidity measure used by our
management and by external users of our financial statements, such
as investors, commercial banks, research analysts and
others to assess the Partnership's ability to make cash
distributions to our common and preferred unitholders and our
general partner and repay debt.
"Adjusted EBITDA" is a non-GAAP financial measure that we
define as net income (loss) from continuing operations less equity
earnings from unconsolidated investment; plus total distributions
from unconsolidated investment, interest expense, net, debt
modification expense, loss on extinguishment of debt, depreciation,
depletion and amortization and asset impairments. Adjusted EBITDA
should not be considered an alternative to, or more meaningful
than, net income or loss, net income or loss attributable to
partners, operating income, cash flows from operating activities or
any other measure of financial performance presented in accordance
with GAAP as measures of operating performance, liquidity or
ability to service debt obligations. There are significant
limitations to using Adjusted EBITDA as a measure of performance,
including the inability to analyze the effect of certain recurring
items that materially affect our net income (loss), the lack of
comparability of results of operations of different companies and
the different methods of calculating Adjusted EBITDA reported by
different companies. In addition, Adjusted EBITDA presented below
is not calculated or presented on the same basis as Consolidated
EBITDA as defined in our partnership agreement or Consolidated
EBITDDA as defined in Opco's debt agreements. Adjusted EBITDA is a
supplemental performance measure used by our management and by
external users of our financial statements, such as investors,
commercial banks, research analysts and others to assess the
financial performance of our assets without regard to financing
methods, capital structure or historical cost basis.
“Adjusted Net Income” is a non-GAAP financial measure
that we define as Net income attributable to common unitholders and
general partner plus restructuring transaction expenses that
include debt modification expense, loss on extinguishment of debt
and restructuring-related incentive compensation expense, asset
impairments and income (loss) from discontinued operations; less
gain on sale of assets. Adjusted net income should not be
considered in isolation or as a substitute for operating income
(loss), net income (loss), cash flows provided by operating,
investing and financial activities, or other income or cash flow
statement data prepared in accordance with GAAP. Our management
team believes Adjusted net income is useful in evaluating our
financial performance because restructuring transaction expenses
are one time charges, gains on asset sales are not related to the
operations of our business and asset impairments are non-cash
charges. Excluding these from net income allows us to better
compare results from ongoing operations period-over-period.
-Financial Tables, Reconciliation of
Non-GAAP Measures and Recap of Metrics Follow-
Natural Resource Partners L.P.
Financial Tables
Consolidated Statements of Comprehensive Income
(Unaudited) Three
Months Ended March 31, December 31,
(In thousands,
except per unit data)
2018 2017 2017 Revenues and
other income: Coal royalty and other $ 45,973 $ 34,994 $ 47,130
Coal royalty and other—affiliates 237 11,505 223 Transportation and
processing services 5,383 — 4,793 Transportation and processing
services—affiliates — 4,639 — Construction aggregates 26,424 25,483
30,571 Road construction and asphalt paving services 728 1,738
5,324 Equity in earnings of Ciner Wyoming 9,621 10,294 12,781 Gain
on asset sales, net 660 44 280 Total revenues
and other income $ 89,026 $ 88,697 $ 101,102 Operating
expenses: Operating and maintenance expenses $ 29,968 $ 29,628 $
33,893 Operating and maintenance expenses—affiliates, net 2,465
2,555 2,606 Depreciation, depletion and amortization 7,957 9,724
8,790 Amortization expense—affiliate — 768 — General and
administrative 3,405 6,078 2,756 General and
administrative—affiliates 931 1,124 1,806 Asset impairments 242
1,778 1,253 Total operating expenses $ 44,968
$ 51,655 $ 51,104 Income from operations $ 44,058 $ 37,042 $
49,998 Other income (expense) Interest expense $ (18,006 ) $
(23,141 ) $ (19,304 ) Debt modification expense — (7,807 ) —
Interest income 36 17 47 Other expense, net $
(17,970 ) $ (30,931 ) $ (19,257 ) Net income from continuing
operations $ 26,088 $ 6,111 $ 30,741 Loss from discontinued
operations (14 ) (207 ) (34 ) Net income $ 26,074 $ 5,904 $ 30,707
Less: income attributable to preferred unitholders (7,500 ) (2,500
) (7,765 ) Net income attributable to common unitholders and
general partner $ 18,574 $ 3,404 $ 22,942 Net income
attributable to common unitholders 18,203 3,404 22,483 Net income
attributable to the general partner 371 — 459 Income from
continuing operations per common unit Basic $ 1.49 $ 0.30 $ 1.84
Diluted $ 1.16 $ 0.30 $ 1.26 Net income per common unit
Basic $ 1.49 $ 0.28 $ 1.84 Diluted $ 1.15 $ 0.28 $ 1.26 Net
income $ 26,074 $ 5,904 $ 30,707 Add: comprehensive loss from
unconsolidated investment and other (1,125 ) (1,132 ) (234 )
Comprehensive income $ 24,949 $ 4,772 $ 30,473
Natural Resource Partners L.P.
Financial Tables
Consolidated Statements of Cash Flows
(Unaudited)
Three Months Ended March 31,
December 31,
(In
thousands)
2018 2017 2017 Cash flows from
operating activities: Net income $ 26,074 $ 5,904 $ 30,707
Adjustments to reconcile net income to net
cash provided by operating activities of
continuing operations:
Depreciation, depletion and amortization 7,957 9,724 8,790
Amortization expense—affiliates — 768 — Distributions from
unconsolidated investment 10,153 12,250 12,250 Equity earnings from
unconsolidated investment (9,621 ) (10,294 ) (12,781 ) Gain on
asset sales, net (660 ) (44 ) (280 ) Debt modification expense —
7,807 — Loss from discontinued operations 14 207 34 Asset
impairments 242 1,778 1,253 Unit-based compensation expense 792 257
106 Amortization of debt issuance costs and other 771 973 2,490
Other, net—affiliates (190 ) 135 1,119 Change in operating assets
and liabilities: Accounts receivable (5,189 ) (1,267 ) 698 Accounts
receivable—affiliates 67 (196 ) 1,144 Accounts payable (845 ) 986
631 Accounts payable—affiliates 1,531 256 (107 ) Accrued
liabilities (5,169 ) (7,948 ) (1,363 ) Accrued
liabilities—affiliates (515 ) — 515 Accrued interest (9,777 ) (271
) 5,217 Deferred revenue 2,346 1,077 (5,786 ) Deferred
revenue—affiliates — (2,897 ) — Other items, net 2,230 1,284
1,807 Net cash provided by operating activities of
continuing operations $ 20,211 $ 20,489 $ 46,444 Net cash used in
operating activities of discontinued operations (412 ) (284 ) (92 )
Net cash provided by operating activities $ 19,799 $ 20,205 $
46,352 Cash flows from investing activities: Distributions
from unconsolidated investment in excess of cumulative earnings $
2,097 $ — $ — Proceeds from sale of assets 687 (387 ) 563 Return of
long-term contract receivables 487 — 399 Return of long-term
contract receivables—affiliate — 414 — Acquisition of plant and
equipment and other (3,444 ) (2,095 ) (1,065 ) Net cash used in
investing activities of continuing operations $ (173 ) $ (2,068 ) $
(103 ) Net cash provided by investing activities of discontinued
operations — 29 — Net cash used in investing
activities $ (173 ) $ (2,039 ) $ (103 )
Consolidated Statements of Cash
Flows—Continued
(Unaudited)
Three Months Ended March 31, December
31,
(In
thousands)
2018 2017 2017 Cash flows from financing
activities: Proceeds from issuance of preferred units and warrants,
net $ — $ 242,100 $ — Proceeds from issuance of 2022 Senior Notes,
net — 103,688 — Proceeds from loans 35,000 — 8,000 Repayments of
loans (40,800 ) (251,010 ) (136,027 ) Redemption of preferred units
paid in kind (8,844 ) — — Distributions to common unitholders and
general partner (5,617 ) (5,615 ) (5,617 ) Distributions to
preferred unitholders (7,765 ) — (3,825 ) Contributions to
discontinued operations (412 ) (255 ) (92 ) Debt issue costs and
other (275 ) (34,755 ) (197 ) Net cash provided by (used in)
financing activities of continuing operations $ (28,713 ) $ 54,153
$ (137,758 ) Net cash provided by financing activities of
discontinued operations 412 255 92 Net cash
provided by (used in) financing activities $ (28,301 ) $ 54,408 $
(137,666 ) Net increase (decrease) in cash and cash
equivalents $ (8,675 ) $ 72,574 $ (91,417 ) Cash and cash
equivalents at beginning of period 29,827 40,371
121,244 Cash and cash equivalents at end of period $ 21,152
$ 112,945 $ 29,827 Supplemental cash flow information: Cash
paid during the period for interest from continuing operations $
26,023 $ 19,851 $ 10,993 Non-cash investing and financing
activities: Issuance of 2022 Senior Notes in exchange for 2018
Senior Notes $ — $ 240,638 $ — Plant, equipment and mineral rights
funded with accounts payable or accrued liabilities $ 24 $ — $ 294
Natural Resource Partners L.P.
Financial Tables
Consolidated Balance Sheets
March 31, December
31,
(In thousands,
except unit data)
2018 2017 (Unaudited) ASSETS Current assets:
Cash and cash equivalents $ 21,152 $ 29,827 Accounts receivable,
net 55,651 47,026 Accounts receivable—affiliates 94 161 Inventory
8,071 7,553 Prepaid expenses and other 3,088 5,838 Current assets
of discontinued operations 991 991 Total current
assets $ 89,047 $ 91,396 Land 24,809 25,247 Plant and equipment,
net 47,237 46,170 Mineral rights, net 878,845 883,885 Intangible
assets, net 48,769 49,554 Equity in unconsolidated investment
241,679 245,433 Long-term contracts receivable 40,331 40,776 Other
assets 6,489 6,547 Other assets—affiliate — 156 Total
assets $ 1,377,206 $ 1,389,164 LIABILITIES AND
CAPITAL Current liabilities: Accounts payable $ 5,911 $ 6,957
Accounts payable—affiliates 2,093 562 Accrued liabilities 11,409
16,890 Accrued liabilities—affiliates — 515 Accrued interest 5,706
15,484 Current portion of deferred revenue 1,554 — Current portion
of long-term debt, net 79,723 79,740 Current liabilities of
discontinued operations 3 401 Total current
liabilities $ 106,399 $ 120,549 Deferred revenue 14,622 100,605
Long-term debt, net 724,854 729,608 Other non-current liabilities
2,492 2,808 Other non-current liabilities—affiliate —
346 Total liabilities $ 848,367 $ 953,916 Commitments and
contingencies
Class A Convertible Preferred Units
(250,000 and 258,844 units issued and outstanding at March 31,
2018 and December 31, 2017, respectively,
at $1,000 par value per unit; liquidation preference of
$1,500 per unit)
$ 164,587 $ 173,431 Partners’ capital:
Common unitholders’ interest (12,245,920
and 12,232,006 units issued and outstanding at March
31, 2018 and December 31, 2017,
respectively)
$ 301,344 $ 199,851 General partner’s interest 3,924 1,857 Warrant
holders interest 66,816 66,816 Accumulated other comprehensive loss
(4,438 ) (3,313 ) Total partners’ capital $ 367,646 $ 265,211
Non-controlling interest (3,394 ) (3,394 ) Total capital 364,252
261,817 Total liabilities and capital $ 1,377,206
$ 1,389,164
Natural Resource Partners L.P.
Financial Tables
Consolidated Statement of Partners' Capital
(Unaudited) Common
Unitholders
General
Partner
Warrant
Holders
Accumulated
Other
Comprehensive
Loss
Partners'
Capital
Excluding
Non-
Controlling
Interest
Non-
Controlling
Interest
Total
Capital
(In
thousands)
Units Amounts Balance at December 31,
2017 12,232 $ 199,851 $ 1,857 $ 66,816 $ (3,313 ) $ 265,211 $
(3,394 ) $ 261,817 Cumulative effect of adoption of accounting
standard — 88,448 1,805 — — 90,253 — 90,253 Net income — 25,553 521
— — 26,074 — 26,074 Distributions to common unitholders and general
partner — (5,505 ) (112 ) — — (5,617 ) — (5,617 ) Distributions to
preferred unitholders — (7,610 ) (155 ) — — (7,765 ) — (7,765 )
Issuance of unit-based awards 14 410 — — — 410 — 410 Unit-based
awards amortization and vesting — 197 — — — 197 — 197 Comprehensive
loss from unconsolidated investment and other — — 8
— (1,125 ) (1,117 ) — (1,117 ) Balance at
March 31, 2018 12,246 $ 301,344 $ 3,924 $
66,816 $ (4,438 ) $ 367,646 $ (3,394 ) $ 364,252
Natural Resource Partners L.P.
Financial Tables (Unaudited)
The table below presents NRP's unaudited
business results by segment for three months ended March 31,
2018 and 2017:
Operating Business
Segments
Coal
Royalty
and Other
Construction
Aggregates
Corporate
and
Financing
(In
thousands)
Soda Ash Total Three Months Ended March 31, 2018
Revenues and other income $ 51,593 $ 9,621 $ 27,152 $ — $ 88,366
Gains on asset sales 651 — 9 — 660
Total revenues and other income $ 52,244 $ 9,621 $ 27,161 $
— $ 89,026 Asset impairments $ 242 $ — $ — $ — $ 242 Net income
(loss) from continuing operations $ 40,728 $ 9,621 $ (1,975 ) $
(22,286 ) $ 26,088 Three Months Ended March 31, 2017
Revenues and other income $ 51,138 $ 10,294 $ 27,221 $ — $ 88,653
Gains on asset sales 29 — 15 — 44
Total revenues and other income $ 51,167 $ 10,294 $ 27,236 $
— $ 88,697 Asset impairments $ 1,778 $ — $ — $ — $ 1,778 Net income
(loss) from continuing operations $ 35,094 $ 10,294 $ (1,539 ) $
(37,738 ) $ 6,111 Three Months Ended December 31, 2017
Revenues and other income $ 52,146 $ 12,781 $ 35,895 $ — $ 100,822
Gains on asset sales 178 — 102 — 280
Total revenues and other income $ 52,324 $ 12,781 $ 35,997 $
— $ 101,102 Asset impairments $ 1,189 $ — $ 64 $ — $ 1,253 Net
income (loss) from continuing operations $ 39,729 $ 12,781 $ 1,989
$ (23,758 ) $ 30,741 Adjusted EBITDA (1) $ 46,679 $ 12,250 $ 5,143
$ (4,696 ) $ 59,376 Net cash provided by (used in) operating
activities of continuing operations $ 45,550 $ 12,250 $ 4,010 $
(15,366 ) $ 46,444 Net cash provided by (used in) investing
activities of continuing operations $ 591 $ — $ (694 ) $ — $ (103 )
Net cash provided by financing activities of continuing operations
$ — $ — $ (197 ) $ (137,561 ) $ (137,758 )
Natural Resource Partners L.P.
Financial Tables (Unaudited)
Operating Statistics - Coal Royalty and Other
Three Months Ended
March 31, December 31,
($ in thousands,
except tons and per ton amounts)
2018 2017 2017
Coal production (tons) Appalachia Northern 225 1,206 464 Central
3,545 3,699 3,542 Southern 546 562 535 Total
Appalachia 4,316 5,467 4,541 Illinois Basin 743 2,017 828 Northern
Powder River Basin 1,233 950 1,678 Total coal
production 6,292 8,434 7,047 Coal royalty
revenue per ton Appalachia Northern $ 4.73 $ 0.50 $ 2.14 Central $
5.71 $ 5.46 $ 5.21 Southern $ 7.16 $ 6.46 $ 5.90 Illinois Basin $
4.14 $ 3.30 $ 4.75 Northern Powder River Basin $ 2.24 $ 2.63 $ 2.27
Combined average coal royalty revenue per ton $ 4.93 $ 3.98 $ 4.31
Coal royalty revenues Appalachia Northern $ 1,066 $ 607 $
992 Central 20,232 20,184 18,462 Southern 3,914 3,632
3,157 Total Appalachia $ 25,212 $ 24,423 $ 22,611 Illinois Basin
3,075 6,646 3,934 Northern Powder River Basin 2,765 2,498
3,815 Unadjusted coal royalty revenue $ 31,052 $ 33,567 $
30,360 Coal royalty adjustment for minimum leases (2,361 ) —
— Total coal royalty revenue $ 28,691 $ 33,567 $
30,360 Other revenues Production lease minimum revenue $ 425 $
5,196 $ 8,266 Minimum lease straight line revenue 6,760 — —
Property tax revenue 1,182 2,698 813 Wheelage 1,974 1,267 1,224
Coal overriding royalty revenue 2,872 824 4,067 Aggregates royalty
revenue 1,091 1,244 728 Oil and gas royalty revenues 2,898 1,491
1,693 Other 317 212 202 Total other revenues $ 17,519
$ 12,932 $ 16,993 Coal royalty and other income
46,210 46,499 47,353 Transportation and processing services fees
5,383 4,639 4,793 Gain on coal royalty and other segment asset
sales 651 29 178 Total coal royalty and other segment
revenues and other income $ 52,244 $ 51,167 $ 52,324
Natural Resource Partners L.P.
Reconciliation of Non-GAAP
Measures
Distributable Cash Flow and Free Cash Flow
(Unaudited)
Coal
Royalty and
Other
Construction
Aggregates
Corporate
and
Financing
(In
thousands)
Soda Ash Total Three Months Ended March 31,
2018 Net cash provided by (used in) operating activities of
continuing operations $ 38,793 $ 10,153 $ 2,797 $ (31,532 ) $
20,211 Add: distributions from unconsolidated investment in excess
of cumulative earnings — 2,097 — — 2,097 Add: proceeds from the
sale of assets 656 — 31 — 687 Add: return of long-term contract
receivables 487 — — — 487 Less: maintenance capital expenditures —
— (2,637 ) — (2,637 ) Distributable cash flow
$ 39,936 $ 12,250 $ 191 $ (31,532 ) $ 20,845
Less: proceeds from the sale of assets 656 — 31 — 687 Less:
expansion capital expenditures — — 807 — 807 Less: mitigation
payments and acquisition costs classified as financing activities —
— 49 — 49 Free cash flow $
39,280 $ 12,250 $ (696 ) $ (31,532 ) $ 19,302
Three Months Ended March 31, 2017 Net cash provided
by (used in) operating activities of continuing operations $ 37,932
$ 12,250 $ 4,046 $ (33,739 ) $ 20,489 Add: Proceeds from the sale
of assets (409 ) — 22 — (387 ) Add: return of long-term contract
receivables—affiliate 414 — — — 414 Less: maintenance capital
expenditures — — (1,969 ) — (1,969 )
Distributable cash flow $ 37,937 $ 12,250 $ 2,099
$ (33,739 ) $ 18,547 Less: proceeds from the sale of
assets (409 ) — 22 — (387 ) Less: expansion capital expenditures —
— 126 — 126 Less: mitigation payments and acquisition costs
classified as financing activities — — 96 —
96 Free cash flow $ 38,346 $ 12,250 $
1,855 $ (33,739 ) $ 18,712
Three Months
Ended December 31, 2017 Net cash provided by (used in)
operating activities of continuing operations $ 45,550 $ 12,250 $
4,010 $ (15,366 ) $ 46,444 Add: proceeds from sale of assets 192 —
371 — 563 Add: return of long-term contract receivable 399 — — —
399 Less: maintenance capital expenditures — — (1,025
) — (1,025 ) Distributable cash flow $ 46,141 $
12,250 $ 3,356 $ (15,366 ) $ 46,381 Less:
proceeds from the sale of assets 192 — 371 — 563 Less: expansion
capital expenditures — — 39 — 39 Less: mitigation payments and
acquisition costs classified as financing activities — —
197 — 197 Free cash flow $ 45,949
$ 12,250 $ 2,749 $ (15,366 ) $ 45,582
Natural Resource Partners L.P.
Reconciliation of Non-GAAP
Measures
Adjusted EBITDA (Unaudited)
Coal
Royalty and
Other
Construction
Aggregates
Corporate
and
Financing
(In
thousands)
Soda Ash Total Three Months Ended March 31,
2018 Net income (loss) from continuing operations 40,728 $
9,621 $ (1,975 ) $ (22,286 ) $ 26,088 Less: equity earnings from
unconsolidated investment — (9,621 ) — — (9,621 ) Add: total
distributions from unconsolidated investment — 12,250 — — 12,250
Add: interest expense, net — — 20 17,950 17,970 Add: depreciation,
depletion and amortization 5,100 — 2,857 — 7,957 Add: asset
impairments 242 — — — 242
Adjusted EBITDA $ 46,070 $ 12,250 $ 902 $
(4,336 ) $ 54,886
Three Months Ended March 31,
2017 Net income (loss) from continuing operations $ 35,094 $
10,294 $ (1,539 ) $ (37,738 ) $ 6,111 Less: equity earnings from
unconsolidated investment — (10,294 ) — — (10,294 ) Add: total
distributions from unconsolidated investment — 12,250 — — 12,250
Add: interest expense, net — — 395 22,746 23,141 Add: debt
modification expense — — — 7,807 7,807 Add: depreciation, depletion
and amortization 6,973 — 3,519 — 10,492 Add: asset impairments
1,778 — — — 1,778 Adjusted
EBITDA $ 43,845 $ 12,250 $ 2,375 $ (7,185 ) $
51,285
Three Months Ended December 31, 2017
Net income (loss) from continuing operations $ 39,729 $ 12,781 $
1,989 $ (23,758 ) $ 30,741 Less: equity earnings from
unconsolidated investment — (12,781 ) — — (12,781 ) Add: total
distributions from unconsolidated investment — 12,250 — — 12,250
Add: interest expense, net — — 61 19,062 19,123 Add: depreciation,
depletion and amortization 5,761 — 3,029 — 8,790 Add: asset
impairments 1,189 — 64 — 1,253
Adjusted EBITDA $ 46,679 $ 12,250 $ 5,143 $
(4,696 ) $ 59,376
Natural Resource Partners L.P.
Reconciliation of Non-GAAP Measures Adjusted Net
Income (Unaudited)
Three Months Ended March 31,
December 31,
(In
thousands)
2018 2017 2017 Net
income $ 26,074 $ 5,904 $ 30,707 Less: income attributable to
preferred unitholders (7,500 ) (2,500 ) (7,765 ) Net income
attributable to common unitholders and general partner $ 18,574 $
3,404 $ 22,942 Add: asset impairments 242 1,778 1,253 Add: loss
from discontinued operations 14 207 34 Add: loss on extinguishment
of debt — 7,807 — Add: restructuring-related incentive compensation
expense — 3,847 — Less: gain on asset sales (660 ) (44 ) (280 )
Adjusted net income $ 18,170 $ 16,999 $ 23,949
Last Twelve Months Distributable Cash Flow and
Free Cash Flow (Unaudited)
Three Months Ended
(In
thousands)
June 30,
2017
September 30,2017
December 31,2017
March 31,
2018
Last 12
Months
Net cash provided by operating activities of continuing operations
$ 35,105 $ 25,800 $ 46,444 $ 20,211 $ 127,560 Add: distributions
from unconsolidated investment in excess of cumulative earnings
2,388 3,258 — 2,097 7,743 Add: proceeds from the sale of assets
1,655 151 563 687 3,056 Add: return on long-term contract
receivables (including affiliate) 1,597 600 399 487 3,083 Less:
maintenance capital expenditures (2,415 ) (926 ) (1,025 ) (2,637 )
(7,003 ) Distributable cash flow $ 38,330 $ 28,883 $
46,381 $ 20,845 $ 134,439 Less: proceeds from
the sale of assets 1,655 151 563 687 3,056 Less: expansion capital
expenditures 489 311 39 807 1,646 Less: mitigation payments and
acquisition costs classified as financing activities 1,000 —
197 49 1,246 Free cash flow $ 35,186
$ 28,421 $ 45,582 $ 19,302 $ 128,491
Distribution Coverage Ratio (1) 6.0 x
______________________
(1) Distribution
Coverage Ratio is calculated as last twelve months' DCF divided by
annual common unit distributions times number of common units and
general partner units outstanding.
Last Twelve Months Adjusted EBITDA
(Unaudited)
Three Months Ended
(In
thousands)
June 30,
2017
September 30,2017
December 31,2017
March 31,
2018
Last 12
Months
Net income from continuing operations $ 25,857 $ 26,499 $ 30,741 $
26,088 $ 109,185 Less: equity earnings from unconsolidated
investment (8,389 ) (8,993 ) (12,781 ) (9,621 ) (39,784 ) Add:
total distributions from unconsolidated investment 12,250 12,250
12,250 12,250 49,000 Add: interest expense 20,377 20,080 19,123
17,970 77,550 Add: debt modification expense 132 — — — 132 Add:
loss on extinguishment of debt 4,107 — — — 4,107 Add: depreciation,
depletion and amortization 8,405 8,306 8,790 7,957 33,458 Add:
asset impairments — — 1,253 242 1,495
Adjusted EBITDA $ 62,739 $ 58,142 $ 59,376
$ 54,886 $ 235,143 Debt—at March 31,
2018 $ 822,044 Leverage Ratio (1) 3.50 x
______________________
(1) Leverage Ratio is
calculated as last twelve months' Adjusted EBITDA divided by the
outstanding principal value of our debt as of March 31, 2018.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20180509005331/en/
Natural Resource Partners L.P.Kathy H. Roberts,
713-751-7555kroberts@nrplp.com
Natural Resource Partners (NYSE:NRP)
Historical Stock Chart
From Feb 2024 to Mar 2024
Natural Resource Partners (NYSE:NRP)
Historical Stock Chart
From Mar 2023 to Mar 2024