Natural Resource Partners L.P. (NYSE:NRP) today reported
first quarter 2019 results as follows:
Three Months Ended
Last TwelveMonths
March 31, March 31,
(In thousands,
except per unit data) (Unaudited)
2019 2018 2019 Net income from
continuing operations $ 35,765 $ 26,286 $ 131,839 Adjusted EBITDA
(1) 52,449 52,207 230,483 Cash flow provided by (used in)
continuing operations: Operating activities 22,832 17,414 183,700
Investing activities 697 3,240 5,064 Financing activities (99,852 )
(26,844 ) (79,847 ) Distributable cash flow (1) 23,139 20,654
386,465 Free cash flow (1) 23,273 19,998 186,715 Cash flow cushion
(last twelve months) (1) 32,484
_________________________
(1)
See "Non-GAAP Financial Measures" and
reconciliation tables at the end of this release.
“NRP started the year with a solid quarter of financial results,
continued robust cash flow generation and paid off $86 million of
debt,” commented NRP’s President and Chief Operating Officer, Craig
Nunez. “Additionally, in April we successfully refinanced our $100
million revolving credit facility, extending the maturity from 2020
to 2023, and we issued $300 million of 9.125% unsecured bonds due
2025, which will be used along with cash on hand to redeem our
existing $346 million of 10.5% bonds later this month, lowering our
total debt by an additional $46 million. We are pleased with the
results of these transactions and remain committed to continue
strengthening our balance sheet to further de-lever and de-risk the
Partnership.”
NRP’s liquidity was $229.7 million at March 31, 2019,
consisting of $112.4 million of cash, $17.3 million of cash
restricted for debt repayment and $100.0 million of borrowing
capacity available under its credit facility. After giving effect
to the refinancing transactions, NRP’s liquidity as of March 31,
2019 would have been approximately $154 million, consisting of
approximately $54 million of cash and $100 million of borrowing
capacity. NRP’s consolidated Debt-to-Adjusted EBITDA ratio at
March 31, 2019, excluding the one-time, beneficial Hillsboro
settlement, was 2.9x, and after giving effect to the refinancing
transactions it will improve to 2.7x.
NRP’s cash flow cushion for the last twelve months ended March
31, 2019 was $32.5 million. Cash flow cushion represents the amount
of free cash flow left over after payment of mandatory debt
amortizations and preferred and common unit distributions.
NRP declared a cash distribution of $0.45 per common unit and a
cash distribution of $7.5 million on NRP’s Preferred Units for the
first quarter of 2019. In addition, NRP declared a one-time special
cash distribution of $0.85 per common unit to cover the common
unitholders’ tax liability resulting from the sale of NRP’s
construction aggregates business in December 2018.
First Quarter Segment Results (Unaudited)
Operating Business Segments
Coal Royalty Corporate
(In thousands) and Other Soda Ash and
Financing Total Three Months Ended March 31, 2019 Net
income (loss) from continuing operations $ 42,607 $ 11,682 $
(18,524 ) $ 35,765 Adjusted EBITDA (1) 46,999 9,800 (4,350 ) 52,449
Cash flow provided by (used in) continuing operations: Operating
activities 42,916 9,800 (29,884 ) 22,832 Investing activities 697 —
— 697 Financing activities — — (99,852 ) (99,852 ) Distributable
cash flow (1) 43,613 9,800 (29,884 ) 23,139 Free cash flow (1)
43,357 9,800 (29,884 ) 23,273 Three Months Ended March 31,
2018 Net income (loss) from continuing operations $ 38,951 $ 9,621
$ (22,286 ) $ 26,286 Adjusted EBITDA (1) 44,293 12,250 (4,336 )
52,207 Cash flow provided by (used in) continuing operations:
Operating activities 38,793 10,153 (31,532 ) 17,414 Investing
activities 1,143 2,097 — 3,240 Financing activities — — (26,844 )
(26,844 ) Distributable cash flow (1) 39,936 12,250 (31,532 )
20,654 Free cash flow (1) 39,280 12,250 (31,532 ) 19,998
_________________________
(1)
See "Non-GAAP Financial Measures" and
reconciliation tables at the end of this release.
Coal Royalty and Other
Solid first quarter 2019 results were driven by continued stable
performance from NRP's metallurgical and thermal coal properties.
First quarter 2019 revenues, net income and Adjusted EBITDA were
positively impacted by higher average coal royalty revenue per ton
and increased coal overriding royalty revenues from NRP's
Williamson property in the Illinois Basin. In addition, NRP
recorded $2.8 million of revenue from its Hillsboro property in the
first quarter of 2019, compared to zero in the prior year quarter,
following the settlement of the Foresight litigation in the fourth
quarter of 2018. Consistent with the prior year quarter,
approximately 65% of NRP's coal royalty revenues and approximately
55% of its coal royalty production was derived from metallurgical
coal during the three months ended March 31, 2019.
Distributable cash flow and Free cash flow increased compared to
the prior year quarter primarily as a result of the timing of cash
collections and the collection of lease amendment fees in the first
quarter of 2019.
Soda Ash
Soda Ash segment operating performance increased compared to the
prior year quarter primarily as a result of an increase in
production and sales volumes and higher domestic and international
sales prices compared to the prior year quarter.
Adjusted EBITDA, Distributable cash flow and Free cash flow
decreased $2.5 million compared to the prior year quarter as a
result of a lower cash distribution received from Ciner Wyoming in
the first quarter of 2019.
Corporate and Finance
Corporate and Finance segment results improved compared to the
prior year quarter primarily due to lower interest expense as a
result of NRP’s continued debt repayment.
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 55454892. Investors may also listen to the call via the
Investor Relations section of the NRP website at www.nrplp.com. To
access the replay, please 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, manages and leases
a diversified portfolio of mineral properties in the United States
including interests in coal, industrial minerals and other natural
resources. A large percentage of NRP’s revenues are generated
from royalties and other passive income. In addition, NRP owns
an equity investment in Ciner Wyoming, a trona/soda ash
operation.
For additional information, please contact Tiffany Sammis at
713-751-7515 or tsammis@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
“Adjusted EBITDA” is a non-GAAP financial measure that we
define as net income (loss) from continuing operations less equity
earnings from unconsolidated investment, net income attributable to
non-controlling interest and gain on reserve swap; 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.
“Distributable cash flow” or “DCF” is a non-GAAP
financial measure that we define as net cash provided by (used in)
operating activities of continuing operations plus distributions
from unconsolidated investment in excess of cumulative earnings,
proceeds from sales of assets, including sales of 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, Distributable cash flow 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. Distributable cash flow 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 our
ability to make cash distributions and repay debt.
“Free cash flow” or “FCF” is a non-GAAP financial measure
that we define as net cash provided by (used in) 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 acquisition costs classified as financing activities and
distributions to non-controlling interest. FCF is calculated before
mandatory debt repayments. Free cash flow 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. Free cash flow may not be calculated the same for us as
for other companies. Free cash flow 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 our ability to make cash
distributions and repay debt.
“Free cash flow excluding discontinued operations and
one-time beneficial items” is a non-GAAP financial measure that
we define as Free cash flow excluding discontinued operations and
one-time beneficial items. Free cash flow excluding discontinued
operations and one-time beneficial items 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. Free cash flow excluding discontinued operations and
one-time beneficial items may not be calculated the same for us as
for other companies. Free cash flow excluding discontinued
operations and one-time beneficial items is a supplemental
liquidity measure used by our management to assess our ability
to make cash distributions and repay debt.
“Cash flow cushion” is a non-GAAP financial measure that
we define as Free cash flow excluding discontinued operations and
one-time beneficial items less mandatory Opco debt amortization
payments, preferred unit distributions and common unit
distributions. Cash flow cushion 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. Cash flow cushion is a supplemental liquidity measure
used by our management to assess the Partnership’s ability to make
or raise cash distributions to our common and preferred unitholders
and our general partner and repay debt or redeem preferred
units.
“Return on capital employed” or “ROCE” is a non-GAAP
financial measure that we define as Net income from continuing
operations plus interest expense divided by the sum of equity
excluding equity of discontinued operations, and debt. Return on
capital employed 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.
Return on capital employed is a supplemental performance measure
used by our management team that measures our profitability and
efficiency with which our capital is employed. The measure provides
an indication of operating performance before the impact of
leverage in the capital structure.
“Return on capital employed excluding discontinued operations
and one-time beneficial items” is a non-GAAP financial measure
that we define as Return on capital employed excluding one-time
beneficial items. Return on capital employed excluding discontinued
operations and one-time beneficial items 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. Return on capital employed excluding discontinued
operations and one-time beneficial items is a supplemental
performance measure used by our management team that measures our
profitability and efficiency with which our capital is employed
excluding the impact of one-time beneficial items. The measure
provides an indication of operating performance before the impact
of leverage in the capital structure and excluding the impact of
one-time beneficial items.
-Financial Tables, Reconciliation of
Non-GAAP Measures and Recap of Metrics Follow-
Natural Resource Partners L.P. Financial
Tables (Unaudited) Consolidated Statements of
Comprehensive Income Three Months
Ended March 31, December 31,
(In thousands,
except per unit data)
2019 2018 2018 Revenues and
other income Coal royalty and other $ 49,502 $ 44,474 $ 43,966
Transportation and processing services 5,601 5,383 6,649 Equity in
earnings of Ciner Wyoming 11,682 9,621 13,320 Gain on litigation
settlement — — 25,000 Gain on asset sales 256 651
1,622 Total revenues and other income $ 67,041 $ 60,129 $
90,557 Operating expenses Operating and maintenance expenses
$ 8,360 $ 6,215 $ 8,387 Depreciation, depletion and amortization
4,392 5,100 6,325 General and administrative expenses 4,350 4,336
5,714 Asset impairments — 242 18,038 Total
operating expenses $ 17,102 $ 15,893 $ 38,464 Income from
operations $ 49,939 $ 44,236 $ 52,093 Interest expense, net
$ (14,174 ) $ (17,950 ) $ (17,001 ) Net income from
continuing operations $ 35,765 $ 26,286 $ 35,092 Income (loss) from
discontinued operations (46 ) (1,948 ) 13,966 Net income $
35,719 $ 24,338 $ 49,058 Less: income attributable to preferred
unitholders (7,500 ) (7,500 ) (7,500 ) Net income attributable to
common unitholders and general partner $ 28,219 $ 16,838 $ 41,558
Net income attributable to common unitholders $ 27,655 $
16,501 $ 40,727 Net income attributable to the general partner $
564 $ 337 $ 831 Income from continuing operations per common
unit Basic $ 2.26 $ 1.50 $ 2.21 Diluted $ 1.75 $ 1.16 $ 1.69
Net income per common unit Basic $ 2.26 $ 1.35 $ 3.33 Diluted $
1.75 $ 1.08 $ 2.36 Net income $ 35,719 $ 24,338 $ 49,058
Comprehensive income (loss) from unconsolidated investment and
other 1,005 (1,125 ) 619 Comprehensive income $
36,724 $ 23,213 $ 49,677
Natural Resource Partners L.P. Financial Tables
(Unaudited) Consolidated Statements of Cash
Flows Three Months Ended March
31, December 31,
(In
thousands)
2019 2018 2018 Cash flows from
operating activities Net income $ 35,719 $ 24,338 $ 49,058
Adjustments to reconcile net income to net cash provided by
operating activities of continuing operations: Depreciation,
depletion and amortization 4,392 5,100 6,325 Distributions from
unconsolidated investment 9,800 10,153 9,800 Equity earnings from
unconsolidated investment (11,682 ) (9,621 ) (13,320 ) Gain on
asset sales (256 ) (651 ) (1,622 ) Income (loss) from discontinued
operations 46 1,948 (13,966 ) Asset impairments — 242 18,038
Unit-based compensation expense 901 687 290 Amortization of debt
issuance costs and other 1,796 1,154 3,112 Change in operating
assets and liabilities: Accounts receivable (4,927 ) (10,027 ) 159
Accounts payable (616 ) 869 1,048 Accrued liabilities (6,164 )
(5,042 ) 3,212 Accrued interest (10,033 ) (9,777 ) 8,806 Deferred
revenue 4,534 5,361 10,265 Other items, net (678 ) 2,680
(716 ) Net cash provided by operating activities of continuing
operations $ 22,832 $ 17,414 $ 80,489 Net cash provided by
operating activities of discontinued operations 121 2,385
886 Net cash provided by operating activities $
22,953 $ 19,799 $ 81,375 Cash flows from investing
activities Distributions from unconsolidated investment in excess
of cumulative earnings $ — $ 2,097 $ — Proceeds from sale of assets
256 656 1,623 Return of long-term contract receivables 441
487 455 Net cash provided by investing activities of
continuing operations $ 697 $ 3,240 $ 2,078 Net cash provided by
(used in) investing activities of discontinued operations (390 )
(3,413 ) 192,364 Net cash provided by (used in) investing
activities $ 307 $ (173 ) $ 194,442 Cash flows from
financing activities Borrowings on revolving credit facility —
35,000 — Repayments of loans (86,468 ) (40,800 ) (119,986 )
Redemption of preferred units paid-in-kind — (8,844 ) —
Distributions to common unitholders and general partner (5,625 )
(5,617 ) (5,623 ) Distributions to preferred unitholders (7,500 )
(7,765 ) (7,500 ) Contributions from (to) discontinued operations
(269 ) 1,408 197,965 Debt issuance costs and other 10 (226 )
— Net cash provided by (used in) financing activities of
continuing operations $ (99,852 ) $ (26,844 ) $ 64,856 Net cash
provided by (used in) financing activities of discontinued
operations 269 (1,457 ) (198,030 ) Net cash used in
financing activities $ (99,583 ) $ (28,301 ) $ (133,174 )
Net increase (decrease) in cash, cash equivalents and restricted
cash $ (76,323 ) $ (8,675 ) $ 142,643 Cash, cash equivalents
and restricted cash of continuing operations at beginning of period
$ 206,030 $ 26,980 $ 58,607 Cash, cash equivalents and restricted
cash of discontinued operations at beginning of period —
2,847 4,780 Cash, cash equivalents and restricted
cash at beginning of period $ 206,030 $ 29,827 $ 63,387
Cash, cash equivalents and restricted cash at end of period $
129,707 $ 21,152 $ 206,030 Less: cash, cash equivalents and
restricted cash of discontinued operations at end of period —
(362 ) — Cash, cash equivalents and restricted cash
of continuing operations at end of period $ 129,707 $ 20,790 $
206,030 Supplemental cash flow information: Cash paid during
the period for interest of continuing operations $ 23,422 $ 26,023
$ 6,838
Natural Resource Partners L.P.
Financial Tables (Unaudited) Consolidated
Balance Sheets March 31,
December 31, 2019 2018
(In thousands,
except unit data)
ASSETS Current assets Cash and cash equivalents $ 112,374 $ 101,839
Restricted cash 17,333 104,191 Accounts receivable, net 37,023
32,058 Prepaid expenses and other 4,141 3,462 Current assets of
discontinued operations 998 993 Total current assets
$ 171,869 $ 242,543 Land 24,008 24,008 Plant and equipment, net 893
984 Mineral rights, net 739,570 743,112 Intangible assets, net
41,754 42,513 Equity in unconsolidated investment 249,936 247,051
Long-term contracts receivable 38,464 38,945 Other assets 5,677
2,491 Total assets $ 1,272,171 $ 1,341,647
LIABILITIES AND CAPITAL Current liabilities Accounts payable
$ 1,797 $ 2,414 Accrued liabilities 6,200 12,347 Accrued interest
4,312 14,345 Current portion of deferred revenue 4,614 3,509
Current portion of long-term debt, net 46,024 115,184 Current
liabilities of discontinued operations 727 947 Total
current liabilities $ 63,674 $ 148,746 Deferred revenue 52,473
49,044 Long-term debt, net 541,677 557,574 Other non-current
liabilities 4,720 1,150 Total liabilities $ 662,544 $
756,514 Commitments and contingencies Class A Convertible Preferred
Units (250,000 units issued and outstanding at $1,000 par value per
unit; liquidation preference of $1,500 per unit) $ 164,587 $
164,587 Partners’ capital: Common unitholders’ interest (12,261,199
and 12,249,469 units issued and outstanding at March 31, 2019 and
December 31, 2018, respectively) $ 378,140 $ 355,113 General
partner’s interest 5,476 5,014 Warrant holders' interest 66,816
66,816 Accumulated other comprehensive loss (2,457 ) (3,462 ) Total
partners’ capital 447,975 423,481 Non-controlling interest (2,935 )
(2,935 ) Total capital 445,040 420,546 Total
liabilities and capital $ 1,272,171 $ 1,341,647
Natural Resource Partners L.P. Financial
Tables (Unaudited) Consolidated Statements of
Partners' Capital
Partners'
Capital
Accumulated
Excluding
Common Unitholders
Other
Non-
Non-
General Warrant Comprehensive
Controlling
Controlling
Total (In thousands) Units Amounts
Partner Holders Loss Interests
Interest
Capital Balance at December 31, 2018 12,249 $ 355,113 $
5,014 $ 66,816 $ (3,462 ) $ 423,481 $ (2,935 ) $ 420,546 Net income
(1) — 35,005 714 — — 35,719 — 35,719 Distributions to common
unitholders and general partner — (5,513 ) (112 ) — — (5,625 ) —
(5,625 ) Distributions to preferred unitholders — (7,350 ) (150 ) —
— (7,500 ) — (7,500 ) Issuance of unit-based awards 12 486 — — —
486 — 486 Unit-based awards amortization and vesting — 399 — — —
399 — 399 Comprehensive income from unconsolidated investment and
other — — 10 — 1,005 1,015
— 1,015 Balance at March 31, 2019 12,261
$ 378,140 $ 5,476 $ 66,816 $ (2,457 ) $
447,975 $ (2,935 ) $ 445,040
_________________________
(1) Net income includes $7.5 million attributable to
Preferred Unitholders that accumulated during the period, of which
$7.35 million is allocated to the common unitholders and $0.15
million is allocated to the general partner.
Partners'
Capital
Accumulated
Excluding
Common Unitholders
Other
Non-
Non-
General Warrant Comprehensive
Controlling
Controlling
Total (In thousands) Units Amounts
Partner Holders Loss
Interest
Interest
Capital 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 — 69,057 1,409 — — 70,466
— 70,466 Net income (1) — 23,851 487 — — 24,338 — 24,338
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 income
(loss) from unconsolidated investment and other — — 8
— (1,125 ) (1,117 ) — (1,117 ) Balance at
March 31, 2018 12,246 $ 280,251 $ 3,494 $
66,816 $ (4,438 ) $ 346,123 $ (3,394 ) $ 342,729
_________________________
(1) Net income includes $7.5 million attributable to
Preferred Unitholders that accumulated during the period, of which
$7.35 million is allocated to the common unitholders and $0.15
million is allocated to the general partner.
Natural Resource Partners L.P.
Financial Tables
(Unaudited)
The following tables present NRP’s unaudited business results by
segment for the three months ended March 31, 2019 and 2018 and
December 31, 2018:
Operating Business Segments
Coal Royalty Corporate
and
(In
thousands)
and Other Soda Ash Financing Total
Three Months Ended March 31, 2019 Revenues $ 55,103 $ 11,682 $ — $
66,785 Gains on asset sales, net 256 — — 256 Total revenues
and other income $ 55,359 $ 11,682 $ — $ 67,041 Asset impairments $
— $ — $ — $ — Net income (loss) from continuing operations $ 42,607
$ 11,682 $ (18,524 ) $ 35,765 Adjusted EBITDA (1) $ 46,999 $ 9,800
$ (4,350 ) $ 52,449 Distributable cash flow (1) (2) $ 43,613 $
9,800 $ (29,884 ) $ 23,139 Free cash flow (1) $ 43,357 $ 9,800 $
(29,884 ) $ 23,273 Three Months Ended March 31, 2018
Revenues $ 49,857 $ 9,621 $ — $ 59,478 Gains on asset sales, net
651 — — 651 Total revenues and other income $ 50,508 $ 9,621
$ — $ 60,129 Asset impairments $ 242 $ — $ — $ 242 Net income
(loss) from continuing operations $ 38,951 $ 9,621 $ (22,286 ) $
26,286 Adjusted EBITDA (1) $ 44,293 $ 12,250 $ (4,336 ) $ 52,207
Distributable cash flow (1) $ 39,936 $ 12,250 $ (31,532 ) $ 20,654
Free cash flow (1) $ 39,280 $ 12,250 $ (31,532 ) $ 19,998
Three Months Ended December 31, 2018 Revenues $ 50,615 $ 13,320 $ —
$ 63,935 Gain on litigation settlement 25,000 — — 25,000 Gains on
asset sales, net 1,622 — — 1,622 Total revenues and other
income $ 77,237 $ 13,320 $ — $ 90,557 Asset impairments $ 18,038 $
— $ — $ 18,038 Net income (loss) from continuing operations $
44,487 $ 13,320 $ (22,715 ) $ 35,092 Adjusted EBITDA (1) $ 68,850 $
9,800 $ (5,714 ) $ 72,936 Net cash provided by (used in) operating
activities of continuing operations $ 80,272 $ 9,800 $ (9,583 ) $
80,489 Net cash provided by (used in) investing activities of
continuing operations $ 2,078 $ — $ — $ 2,078 Net cash provided by
(used in) financing activities of continuing operations $ — $ — $
64,856 $ 64,856 Distributable cash flow (1) (2) $ 82,350 $ 9,800 $
(9,583 ) $ 280,658 Free cash flow (1) $ 80,727 $ 9,800 $ (9,583 ) $
80,944
_________________________
(1) See "Non-GAAP
Financial Measures" and reconciliation tables at the end of this
release. (2) Includes net proceeds from sale of construction
aggregates business which are classified as investing cash flow
from discontinued operations.
Natural Resource
Partners L.P. Financial Tables (Unaudited)
Operating Statistics - Coal Royalty and Other
Three Months Ended March 31,
December 31,
(In thousands,
except per ton data)
2019 2018 2018 Coal production
(tons) Appalachia Northern 859 225 1,697 Central 3,422 3,545 3,415
Southern 348 546 422 Total Appalachia 4,629
4,316 5,534 Illinois Basin 560 743 648 Northern Powder River Basin
856 1,233 1,417 Total coal production 6,045
6,292 7,599 Coal royalty revenue per ton
Appalachia Northern $ 4.71 $ 4.73 $ 1.78 Central 6.03 5.71 5.79
Southern 8.61 7.16 7.89 Illinois Basin 4.77 4.14 4.84 Northern
Powder River Basin 2.61 2.24 2.56 Combined average coal royalty
revenue per ton 5.39 4.93 4.33 Coal royalty revenues Appalachia
Northern $ 4,045 $ 1,066 $ 3,021 Central 20,644 20,232 19,764
Southern 2,997 3,914 3,327 Total Appalachia
27,686 25,212 26,112 Illinois Basin 2,670 3,075 3,140 Northern
Powder River Basin 2,231 2,765 3,628
Unadjusted coal royalty revenues $ 32,587 $ 31,052 $ 32,880 Coal
royalty adjustment for minimum leases (456 ) (50 ) (12 ) Total coal
royalty revenues $ 32,131 $ 31,002 $ 32,868
Other revenues Production lease minimum revenues $ 2,700 $ 2,535 $
1,897 Minimum lease straight-line revenues 3,316 603 623 Property
tax revenues 1,433 1,182 1,454 Wheelage revenues 1,415 1,974 1,329
Coal overriding royalty revenues 3,975 2,872 3,386 Lease amendment
revenues 771 — — Aggregates royalty revenues 1,464 1,091 1,188 Oil
and gas royalty revenues 1,719 2,898 929 Other 578 317
292 Total other revenues $ 17,371 $ 13,472
$ 11,098 Coal royalty and other $ 49,502 $ 44,474 $
43,966 Transportation and processing services 5,601 5,383 6,649
Gain on litigation settlement — — 25,000 Gain on asset sales 256
651 1,622 Total Coal Royalty and Other segment
revenues and other income $ 55,359 $ 50,508 $ 77,237
Natural Resource Partners L.P.
Reconciliation of Non-GAAP
Measures
(Unaudited)
Adjusted EBITDA Coal
Royalty Corporate and
(In
thousands)
and Other Soda Ash Financing Total
Three Months Ended March 31, 2019 Net income (loss) from
continuing operations $ 42,607 $ 11,682 $ (18,524 ) $ 35,765 Less:
equity earnings from unconsolidated investment — (11,682 ) —
(11,682 ) Add: total distributions from unconsolidated investment —
9,800 — 9,800 Add: interest expense, net — — 14,174 14,174 Add:
depreciation, depletion and amortization 4,392 — — 4,392 Add: asset
impairments — — — — Adjusted EBITDA $
46,999 $ 9,800 $ (4,350 ) $ 52,449
Three Months Ended March 31, 2018 Net income (loss) from
continuing operations $ 38,951 $ 9,621 $ (22,286 ) $ 26,286 Less:
equity earnings from unconsolidated investment — (9,621 ) — (9,621
) Add: total distributions from unconsolidated investment — 12,250
— 12,250 Add: interest expense, net — — 17,950 17,950 Add:
depreciation, depletion and amortization 5,100 — — 5,100 Add: asset
impairments 242 — — 242 Adjusted EBITDA
$ 44,293 $ 12,250 $ (4,336 ) $ 52,207
Three Months Ended December 31, 2018 Net income (loss) from
continuing operations $ 44,487 $ 13,320 $ (22,715 ) $ 35,092 Less:
equity earnings from unconsolidated investment — (13,320 ) —
(13,320 ) Add: total distributions from unconsolidated investment —
9,800 — 9,800 Add: interest expense, net — — 17,001 17,001 Add:
depreciation, depletion and amortization 6,325 — — 6,325 Add: asset
impairments 18,038 — — 18,038 Adjusted
EBITDA $ 68,850 $ 9,800 $ (5,714 ) $ 72,936
Natural Resource Partners L.P.
Reconciliation of Non-GAAP Measures (Unaudited)
Leverage Ratio Three Months
Ended
(In
thousands)
June 30, 2018
September 30, 2018
December 31, 2018
March 31, 2019
Last 12 Months
Net income from continuing operations $ 35,129 $ 25,853 $ 35,092 $
35,765 $ 131,839 Less: equity earnings from unconsolidated
investment (16,529 ) (8,836 ) (13,320 ) (11,682 ) (50,367 ) Add
(less): net loss (net income) attributable to non-controlling
interest (869 ) 359 — — (510 ) Add: total distributions from
unconsolidated investment 12,250 12,250 9,800 9,800 44,100 Add:
interest expense, net 17,734 17,493 17,001 14,174 66,402 Add:
depreciation, depletion and amortization 5,376 4,888 6,325 4,392
20,981 Add: asset impairments — — 18,038 —
18,038 Adjusted EBITDA $ 53,091 $ 52,007
$ 72,936 $ 52,449 $ 230,483 Less:
one-time Hillsboro litigation settlement (25,000 ) Adjusted EBITDA
less one-time Hillsboro litigation settlement $ 205,483
Debt—at March 31, 2019 $ 600,670 Leverage Ratio (1)
2.6 x Leverage Ratio less one-time Hillsboro litigation
settlement (2) 2.9 x
_________________________
(1)
Leverage Ratio is calculated as last
twelve months' Adjusted EBITDA divided by the outstanding principal
of NRP's debt as of March 31, 2019.
(2)
Leverage Ratio less one-time Hillsboro
litigation settlement is calculated as last twelve months' Adjusted
EBITDA less one-time Hillsboro litigation settlement divided by the
outstanding principal of NRP's debt as of March 31, 2019.
Natural Resource Partners L.P.
Reconciliation of Non-GAAP Measures (Unaudited)
Distributable Cash Flow and Free Cash Flow
Coal Royalty Corporate
and
(In
thousands)
and Other Soda Ash Financing Total
Three Months Ended March 31, 2019 Net cash provided by (used
in) operating activities of continuing operations $ 42,916 $ 9,800
$ (29,884 ) $ 22,832 Add: distributions from unconsolidated
investment in excess of cumulative earnings — — — — Add: proceeds
from sale of assets 256 — — 256 Add: proceeds from sale of
discontinued operations — — — (390 ) Add: return of long-term
contract receivables 441 — — 441
Distributable cash flow $ 43,613 $ 9,800 $ (29,884 )
$ 23,139 Less: proceeds from sale of assets (256 ) — — (256
) Less: proceeds from sale of discontinued operations — —
— 390 Free cash flow $ 43,357 $ 9,800
$ (29,884 ) $ 23,273
Three Months Ended
March 31, 2018 Net cash provided by (used in) operating
activities of continuing operations $ 38,793 $ 10,153 $ (31,532 ) $
17,414 Add: distributions from unconsolidated investment in excess
of cumulative earnings — 2,097 — 2,097 Add: proceeds from sale of
assets 656 — — 656 Add: return of long-term contract receivables
487 — — 487 Distributable cash flow $
39,936 $ 12,250 $ (31,532 ) $ 20,654 Less:
proceeds from sale of assets (656 ) — — (656 ) Free
cash flow $ 39,280 $ 12,250 $ (31,532 ) $ 19,998
Three Months Ended December 31, 2018 Net cash
provided by (used in) operating activities of continuing operations
$ 80,272 $ 9,800 $ (9,583 ) $ 80,489 Add: proceeds from sale of
assets 1,623 — — 1,623 Add: proceeds from sale of discontinued
operations — — — 198,091 Add: return of long-term contract
receivables 455 — — 455 Distributable
cash flow $ 82,350 $ 9,800 $ (9,583 ) $ 280,658
Less: proceeds from sale of assets (1,623 ) — — (1,623 )
Less: proceeds from sale of discontinued
operations
— — — (198,091 ) Free cash flow $ 80,727
$ 9,800 $ (9,583 ) $ 80,944
Natural Resource Partners L.P. Reconciliation of Non-GAAP
Measures (Unaudited) LTM Cash Flow Excluding
Discontinued Operations and One-Time Beneficial Items and Cash Flow
Cushion Three Months Ended
(In
thousands)
June 30,2018
September 30,2018
December 31,2018
March 31,2019
Last 12 Months
Net cash provided by (used in) operating activities of continuing
operations $ 53,893 $ 26,486 $ 80,489 $ 22,832 $ 183,700 Add:
distributions from unconsolidated investment in excess of
cumulative earnings — — — — — Add: proceeds from sale of assets 170
— 1,623 256 2,049 Add: proceeds from sale of discontinued
operations — — 198,091 (390 ) 197,701 Add: return of long-term
contract receivables 529 1,590 455 441
3,015 Distributable cash flow $ 54,592 $ 28,076 $ 280,658 $
23,139 $ 386,465 Less: proceeds from sale of assets (170 ) — (1,623
) (256 ) (2,049 )
Less: proceeds from sale of discontinued
operations
— — (198,091 ) 390 (197,701 ) Free cash flow $
54,422 $ 28,076 $ 80,944 $ 23,273 $ 186,715 Add (less): free cash
flow provided by (used by) discontinued operations (2,428 ) 2,871
125 121 689 Free cash flow including
discontinued operations $ 51,994 $ 30,947 $ 81,069
$ 23,394 $ 187,404 Add (less): free cash flow
used by (provided by) discontinued operations 2,428 (2,871 ) (125 )
(121 ) (689 ) Less: cash flow from one-time Hillsboro litigation
settlement — — (25,000 ) — (25,000 ) Free cash
flow excluding discontinued operations and one-time beneficial
items $ 54,422 $ 28,076 $ 55,944 $ 23,273
$ 161,715 Less: mandatory Opco debt amortizations
(7,272 ) (7,648 ) (24,665 ) (37,152 ) (76,737 )
Less: Preferred Unit distributions
(7,500 ) (7,500 ) (7,500 ) (7,500 ) (30,000 ) Less: common unit
distributions (5,623 ) (5,623 ) (5,623 ) (5,625 ) (22,494 ) Cash
flow cushion $ 34,027 $ 7,305 $ 18,156 $
(27,004 ) $ 32,484
Natural Resource
Partners L.P. Reconciliation of Non-GAAP Measures
(Unaudited) Return on Capital Employed
("ROCE")
Coal Royalty
Corporate
(In
thousands)
and Other
Soda Ash
and Financing
Total LTM Ended March 31, 2019 Net income (loss) from
continuing operations $ 164,384 $ 50,367 $ (82,912 ) $ 131,839
Interest expense — — 67,691 67,691
Return $ 164,384 $ 50,367 $ (15,221 ) $ 199,530
As of March 31, 2018 Total assets of
continuing operations $ 944,085 $ 241,679 $ 4,856 $ 1,190,620
Less: total current liabilities of
continuing operations excluding current debt
(8,306 ) — (8,068 ) (16,374 )
Less: total long-term liabilities of
continuing operations excluding long-term debt
(37,081 ) — (252 ) (37,333 ) Add: non-controlling interest 3,445
— — 3,445 Capital employed excluding
discontinued operations $ 902,143 $ 241,679 $ (3,464
) $ 1,140,358 Total Partners' Capital (1) $ 902,143 $
241,679 $ (972,628 ) $ 346,175 Less: Partners' Capital from
discontinued operations — — — (174,981 ) Total
Partners' Capital excluding discontinued operations $ 902,143 $
241,679 $ (972,628 ) $ 171,194 Class A Convertible Preferred Units
— — 164,587 164,587 Debt — — 804,577 804,577
Capital employed excluding discontinued operations $ 902,143
$ 241,679 $ (3,464 ) $ 1,140,358
ROCE excluding discontinued operations 18.2% 20.8%
N/A 17.5% Excluding one-time beneficial items: Return $
164,384 $ 50,367 $ (15,221 ) $ 199,530 Less: income from Hillsboro
litigation settlement (25,000 ) — (25,000 ) Less: income from Ciner
Wyoming's royalty dispute settlement — (12,678 )
(12,678 ) Return excluding discontinued operations and one-time
beneficial items $ 139,384 $ 37,689 $ (15,221 ) $
161,852 ROCE excluding
discontinued operations and one-time beneficial items 15.5% 15.6%
N/A 14.2%
_________________________
(1) Total Partners'
Capital includes $175.0 million from discontinued operations.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190508005106/en/
Tiffany Sammis713-751-7515tsammis@nrplp.com
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