BRISTOL, Tenn., Nov. 14, 2019 /PRNewswire/ -- Contura
Energy, Inc. (NYSE: CTRA), a leading U.S. coal supplier, today
reported results for the third quarter ending September 30, 2019.
Highlights include:
- Net Loss from continuing operations of $(44) million for the third quarter 2019 compared
with Net Income of $24 million in the
second quarter and $14 million in the
same period last year(1)
- Adjusted EBITDA(3) of $40 million for the quarter compared with
$141 million in the second quarter
and $39 million in the same period
last year(1)
- Returned $32 million to
shareholders in the third quarter through share
repurchases
- Updating 2019 guidance and introducing 2020
guidance
- Closed transaction on October
18 with Eagle Specialty Materials related to Powder River
Basin
|
(millions, except per
share)
|
|
Three months
ended
|
|
Sept. 30,
2019(1)
|
June 30,
2019(1)
|
Sept. 30,
2018(1)
|
Net
income(2)
|
$(43.6)
|
$24.3
|
$14.0
|
Net
income(2) per diluted share
|
$(2.29)
|
$1.25
|
$1.35
|
Adjusted
EBITDA(3)
|
$40.0
|
$140.8
|
$38.8
|
Operating cash
flow(4)
|
$20.4
|
$102.5
|
$60.7
|
Capital
expenditures
|
$60.3
|
$42.8
|
$18.4
|
Tons of coal
sold
|
5.8
|
6.4
|
3.9
|
__________________________________
|
1.
|
Excludes discontinued
operations.
|
2.
|
From continuing
operations.
|
3.
|
These are non-GAAP
financial measures. A reconciliation of Net Income to Adjusted
EBITDA is included in tables accompanying the financial
schedules.
|
4.
|
Includes discontinued
operations.
|
"With global metallurgical coal market conditions deteriorating
to a 3-year low and our thermal cost performance coming in weaker
than expectations, Contura ended the third quarter with a
disappointing Adjusted EBITDA result," said chairman and chief
executive officer, David Stetson.
"We are keenly focused on cost control and are confident that our
2020 cost performance will be greatly improved over the current
year."
Financial Performance
Contura reported a net loss from continuing operations of
$43.6 million, or $2.29 per diluted share, for the third quarter
2019. In the second quarter 2019, the company had net income from
continuing operations of $24.3
million or $1.25 per diluted
share.
Total Adjusted EBITDA was $40.0
million for the third quarter, compared with $140.8 million in the second quarter.
Beginning with the third quarter, the company will report
Central Appalachia - Met (CAPP - Met) and Trading & Logistics
(T&L) segments as a single reportable segment under the CAPP -
Met designation. T&L will no longer be reported as a standalone
segment. To conform to the current period reportable segments
presentation, the prior periods have been restated to reflect the
change in reportable segments.
Coal Revenues(1)
|
(millions)
|
|
Three months
ended
|
|
Sept. 30,
2019
|
June 30,
2019
|
CAPP -
Met
|
$323.0
|
$426.4
|
CAPP -
Thermal
|
$70.3
|
$73.5
|
NAPP
|
$67.8
|
$76.2
|
__________________________________
|
1.
|
Represents Non-GAAP
coal revenues which is defined and reconciled under "Non-GAAP
Financial Measures" and "Results of Operations."
|
Coal revenues in the third quarter for CAPP - Met coal were
$323.0 million, CAPP - Thermal
revenues totaled $70.3 million, and
Northern Appalachia (NAPP) coal revenues totaled $67.8 million. Comparatively, in the second
quarter 2019, CAPP - Met, including T&L, revenues were
$426.4 million, CAPP - Thermal
revenues were $73.5 million, and NAPP
revenues were $76.2 million.
Tons Sold
|
(millions)
|
|
Three months
ended
|
|
Sept. 30,
2019
|
June 30,
2019
|
CAPP -
Met
|
3.0
|
3.4
|
CAPP -
Thermal
|
1.1
|
1.2
|
NAPP
|
1.6
|
1.7
|
CAPP - Met tons sold for the third quarter 2019 were 3.0 million
tons, compared to 3.4 million tons, including T&L, in the
second quarter. CAPP - Thermal tons sold totaled 1.1 million tons
in the third quarter, down from 1.2 million tons in the second
quarter. Contura sold 1.6 million tons of NAPP coal during the
third quarter, a decrease of 0.1 million tons from the second
quarter 2019.
Coal Sales Realization(1)
|
(per ton)
|
|
Three months
ended
|
|
Sept. 30,
2019
|
June 30,
2019
|
CAPP -
Met
|
$108.35
|
$124.34
|
CAPP -
Thermal
|
$61.46
|
$61.83
|
NAPP
|
$41.33
|
$43.64
|
__________________________________
|
1.
|
Represents Non-GAAP
coal sales realization which is defined and reconciled under
"Non-GAAP Financial Measures" and "Results of
Operations."
|
The average CAPP - Met coal sales realization for the third
quarter 2019 was $108.35 per ton,
compared with $124.34 per ton,
including T&L, in the second quarter. CAPP - Thermal coal
average price was $61.46 per ton in
the third quarter, down slightly from $61.83 per ton in the second quarter, while the
average NAPP realization in the third quarter was $41.33 per ton, compared with an average price of
$43.64 per ton in the second
quarter.
Cost of Coal Sales Per Ton(1)
|
(per ton)
|
|
Three months
ended
|
|
Sept. 30,
2019
|
June 30,
2019
|
CAPP -
Met
|
$87.32
|
$87.13
|
CAPP -
Thermal
|
$59.17
|
$51.45
|
NAPP
|
$43.87
|
$30.86
|
__________________________________
|
1.
|
Represents Non-GAAP
cost of coal sales per ton which is defined and reconciled under
"Non-GAAP Financial Measures" and "Results of
Operations."
|
Cost of coal sales in CAPP - Met for the quarter averaged
$87.32 per ton, up from $87.13 per ton in the second quarter.
NAPP costs of $43.87 per ton
increased due to lower production volume, primarily associated with
the previously-announced longwall move and employee vacations. In
the second quarter 2019, NAPP cost of coal sales averaged
$30.86 per ton. CAPP - Thermal cost
of coal sales was $59.17 per ton in
the third quarter, up from $51.45 per
ton in the second quarter due to lower production at the Empire
Mine, which was mined out, and Republic Mine, where the production
was adjusted due to soft thermal coal sales. In addition, a
$3 million environmental settlement
was incurred during the quarter, contributing approximately
$3.00 per ton to the CAPP - Thermal
variance.
Adjusted Cost of Produced Coal Sold Per Ton(1)
|
(per ton)
|
|
Three months
ended
|
|
Sept. 30,
2019
|
June 30,
2019
|
CAPP -
Met
|
$83.10
|
$82.11
|
CAPP -
Thermal
|
$59.13
|
$51.34
|
NAPP
|
$43.87
|
$30.86
|
__________________________________
|
1.
|
Represents Non-GAAP
adjusted cost of produced coal sold per ton which is defined and
reconciled under "Non-GAAP Financial Measures" and "Results of
Operations."
|
The CAPP - Met adjusted cost of produced coal sold was
$83.10 per ton for the third quarter
compared with $82.11 per ton in the
second quarter 2019. On the thermal side, the CAPP - Thermal
adjusted cost of coal produced per ton in the third quarter was
$59.13 per ton, up from $51.34 in the second quarter, while NAPP costs
were $43.87 per ton compared with
$30.86 per ton in the second
quarter.
Selling, general and administrative (SG&A) and depreciation,
depletion and amortization (DD&A) expenses
|
(millions)
|
|
Three months
ended
|
|
Sept. 30,
2019
|
June 30,
2019
|
SG&A
|
$17.4
|
$14.8
|
Less: non-cash
stock compensation
and one-time expenses
|
$(2.2)
|
$1.1
|
Non-GAAP
SG&A(1)
|
$15.2
|
$15.9
|
|
|
|
DD&A
|
$60.8
|
$62.8
|
__________________________________
|
1.
|
Represents Non-GAAP
SG&A which is defined under "Non-GAAP Financial
Measures."
|
SG&A expenses for the third quarter 2019 were $17.4 million compared with $14.8 million in the second quarter. The third
quarter 2019 SG&A was $15.2
million, excluding non-cash stock compensation expense of
$2.2 million. DD&A was
$60.8 million during the third
quarter 2019 compared with $62.8
million in the second quarter 2019.
Liquidity and Capital Resources
Cash provided by operating activities for the third quarter
2019, including discontinued operations, was $20.4 million, and capital expenditures for the
third quarter were $60.3 million,
including approximately $16.5 million
associated with the Pax and Lowell metallurgical mine transactions.
Working capital was essentially unchanged from the second quarter.
In the prior period, the cash provided by operating activities was
$102.5 million and capital
expenditures were $42.8 million.
At the end of September 2019,
Contura had $152.6 million in
unrestricted cash, a decrease of $97.0
million in the third quarter, and $290.7 million in restricted cash, deposits and
investments. Total long-term debt, including the current portion of
long-term debt as of September 30,
2019, was approximately $592.8
million. At the end of the third quarter, the company had
total liquidity of $354.1 million,
including cash and cash equivalents of $152.6 million, unrestricted investments of
$25.1 million and $176.4 million of unused commitments available
under the Asset-Based Revolving Credit Facility. As of September 30, 2019, the company had no borrowings
and $48.6 million in letters of
credit outstanding under the Asset-Based Revolving Credit
Facility.
Share Repurchase Plan Update
After adopting a $250 million
capital return program in the second quarter, the company's board
authorized a $100 million stock
repurchase plan on August 29, 2019.
As of September 30, 2019, Contura had
repurchased approximately 1.03 million shares for an aggregate
consideration of $32.5 million, or
$31.54 per share. Subsequent to the
quarter end, the company has suspended future repurchase activities
due to continued softness in the metallurgical coal markets and
accelerated cash outflows associated with the PRB transaction.
Closed transaction with Eagle Specialty Materials related to
PRB
On October 18, 2019 the company
announced the closing of its previously-announced transaction with
Eagle Specialty Materials (ESM) related to the Powder River Basin.
In connection with the closing of the transaction, the surety
bonding previously posted by Contura's subsidiary, Contura Coal
West, LLC (Contura Coal West), in the amount of $238 million has been replaced with substitute
surety bonds arranged by ESM. Neither Contura nor Contura Coal West
will have any liability in respect of those substitute surety
bonds.
As part of the agreement between Contura and ESM, Contura paid
to ESM cash consideration of $81.3
million and has agreed to pay an additional $8.7 million into an escrow account to be
released to ESM when Contura is satisfied that certain federal
royalty claims have been released. Furthermore, Contura has paid
$13.5 million to Campbell County, Wyoming for ad valorem back
taxes.
2019 and 2020 Full-Year Guidance
The company is adjusting its total 2019 coal shipments guidance
to a range of 23.2 million to 24.6 million tons, from the
previously announced range of 23.9 million to 25.6 million tons.
CAPP - Met coal guidance is reduced to a range of 12.4 million to
13.0 million tons, from 12.8 million to 13.7 million tons, due to
softer market conditions, especially in Europe and South
America. NAPP shipments are now expected to be between 6.5
million and 6.9 million tons in 2019, down from 6.8 million to 7.2
million tons. The guidance range for CAPP - Thermal shipments
remains unchanged at 4.3 million to 4.7 million tons.
As of October 28, 2019, 96 percent
of the midpoint of anticipated 2019 CAPP - Met shipments were
committed and priced at an average expected per-ton realization of
$117.65, with an additional 4 percent
committed and priced based on various indices. Based on the
midpoint of guidance, 100 percent of anticipated 2019 NAPP coal
shipments were committed and priced at an average expected per-ton
realization of $43.13. The CAPP -
Thermal segment is 100 percent committed at the midpoint of
expected shipments at an average price of $58.26 per ton.
Contura is increasing its guidance for 2019 CAPP - Met cost of
coal sales per ton to $87.00 to
$90.00, as CAPP - Met now includes
the T&L segment, which typically has higher costs than our
captive mines. Slightly more than $1.00 per ton of the cost increase is related to
merging our former CAPP - Met and T&L segments into one CAPP -
Met segment. Separate from our prior standalone T&L segment,
previously announced 2019 guidance for the CAPP - Met segment was
$83.00 to $87.00 per ton. CAPP - Thermal costs are
estimated to be $55.00 and
$59.00 per ton, up from $52.00 to $57.00.
NAPP costs are now expected to be in the range of $36.00 to $38.00
per ton compared with $34.00 to
$37.00 previously. Costs related to
the company's idle operations are expected to be within a range of
$16 million and $20 million for the full-year 2019.
Contura's 2019 SG&A guidance remains at a range of
$60 million to $65 million, excluding non-recurring items and
stock compensation. Capital expenditure guidance is unchanged in
the range of $170 million to
$190 million. Depreciation, depletion
and amortization for 2019 is expected to be between $245 million and $255
million and 2019 cash interest expense to be between
$45 million and $49 million.
For 2020, the company expects its CAPP - Met shipments to
increase from 2019 to a range of 12.7 million tons to 13.3 million
tons, while CAPP - Thermal volume is being reduced to 3.4 million
tons to 4.0 million tons. NAPP is also expected to be lower in 2020
with a guidance range of 6.0 million ton to 6.8 million tons as we
prepare to move into a new district in 2021 with longer panels and
fewer longwall moves, which we expect to increase our productivity
and efficiency starting in 2022.
For 2020, Contura has committed and priced approximately 32% of
CAPP - Met at an average expected price of $102.88 per ton, while we are 92% committed and
priced at an average price of $55.90
per ton for CAPP - Thermal and 97% committed and priced for NAPP at
an average price of $43.42 per
ton.
As we continue to implement our cost containment processes, the
company expects to see a meaningful decline in 2020 CAPP - Met cost
of coal sales per ton to a range of $76.00 to $81.00.
CAPP - Thermal is expected to be in the range of $56.00 to $60.00
per ton and NAPP in the range of $34.00 to $38.00
per ton.
For 2020, the company expects its SG&A to be in the range of
$60 million to $65 million, excluding non-recurring items and
stock compensation. Our 2020 capital expenditures are estimated in
the range of $175 million to
$195 million; depreciation, depletion
and amortization to be between $230
million and $260 million; and
cash interest expense in the range of $48
million and $52 million.
|
2019
Guidance
|
2020
Guidance
|
in millions of
tons
|
Low
|
High
|
Low
|
High
|
CAPP -
Metallurgical
|
12.4
|
|
13.0
|
|
12.7
|
|
13.3
|
|
CAPP -
Thermal
|
4.3
|
|
4.7
|
|
3.4
|
|
4.0
|
|
NAPP
|
6.5
|
|
6.9
|
|
6.0
|
|
6.8
|
|
Total
Shipments
|
23.2
|
|
24.6
|
|
22.1
|
|
24.1
|
|
|
|
|
|
|
Committed/Priced1,2,3
|
Committed
|
Average
Price
|
Committed
|
Average
Price
|
CAPP4
- Metallurgical
|
96
|
%
|
$117.65
|
|
32
|
%
|
$102.88
|
|
CAPP -
Thermal
|
100
|
%
|
$58.26
|
|
92
|
%
|
$55.90
|
|
NAPP
|
100
|
%
|
$43.13
|
|
97
|
%
|
$43.42
|
|
|
|
|
|
|
Committed/Unpriced1,3
|
Committed
|
|
Committed
|
|
CAPP4
- Metallurgical
|
4
|
%
|
|
15
|
%
|
|
CAPP -
Thermal
|
—
|
%
|
|
1
|
%
|
|
NAPP
|
—
|
%
|
|
3
|
%
|
|
|
|
|
|
|
Costs per
ton
|
Low
|
High
|
Low
|
High
|
CAPP -
Metallurgical
|
$87
|
|
$90
|
|
$76
|
|
$81
|
|
CAPP -
Thermal
|
$55
|
|
$59
|
|
$56
|
|
$60
|
|
NAPP
|
$36
|
|
$38
|
|
$34
|
|
$38
|
|
|
|
|
|
|
In millions
(except taxes)
|
Low
|
High
|
Low
|
High
|
SG&A4
|
$60
|
|
$65
|
|
$60
|
|
$65
|
|
Idle Operations
Expense
|
$16
|
|
$20
|
|
$14
|
|
$18
|
|
Cash Interest
Expense
|
$45
|
|
$49
|
|
$48
|
|
$52
|
|
DD&A
|
$245
|
|
$255
|
|
$230
|
|
$260
|
|
Capital
Expenditures
|
$170
|
|
$190
|
|
$175
|
|
$195
|
|
Tax Rate
|
—
|
%
|
5
|
%
|
—
|
%
|
5
|
%
|
|
Notes:
|
1.
|
Based on committed
and priced coal shipments as of October 28, 2019. Committed
percentage based on the midpoint of shipment guidance
range.
|
2.
|
Actual average
per-ton realizations on committed and priced tons recognized in
future periods may vary based on actual freight expense in future
periods relative to assumed freight expense embedded in projected
average per-ton realizations.
|
3.
|
Includes estimates of
future coal shipments based upon contract terms and anticipated
delivery schedules. Actual coal shipments may vary from these
estimates.
|
4.
|
Excludes expenses
related to non-cash stock compensation, merger-related expenses and
non-recurring business development expenses.
|
Conference Call
The company plans to hold a conference call regarding its third
quarter 2019 results on November 14,
2019, at 10:00 a.m. EST. The
conference call will be available live on the investor section of
the company's website at
http://investors.conturaenergy.com/investors. Analysts who would
like to participate in the conference call should dial 877-791-0213
(domestic toll-free) or 647-689-5651 (international) approximately
10 minutes prior to the start of the call.
ABOUT CONTURA ENERGY
Contura Energy (NYSE: CTRA) is a Tennessee-based coal supplier with affiliate
mining operations across major coal basins in Pennsylvania, Virginia and West
Virginia. With customers across the globe, high-quality
reserves and significant port capacity, Contura Energy reliably
supplies both metallurgical coal to produce steel and thermal coal
to generate power. For more information, visit
www.conturaenergy.com.
FORWARD-LOOKING STATEMENTS
This news release includes forward-looking
statements. These forward-looking statements are based on
Contura's expectations and beliefs concerning future events and
involve risks and uncertainties that may cause actual results to
differ materially from current expectations. These factors are
difficult to predict accurately and may be beyond Contura's
control. Forward-looking statements in this news release or
elsewhere speak only as of the date made. New uncertainties
and risks arise from time to time, and it is impossible for Contura
to predict these events or how they may affect Contura. Except
as required by law, Contura has no duty to, and does not intend to,
update or revise the forward-looking statements in this news
release or elsewhere after the date this release is issued. In
light of these risks and uncertainties, investors should keep in
mind that results, events or developments discussed in any
forward-looking statement made in this news release may not
occur.
INVESTOR
CONTACT
investorrelations@conturaenergy.com
Alex Rotonen, CFA
423.573.0396
MEDIA
CONTACT
corporatecommunications@conturaenergy.com
Emily O'Quinn
423.573.0369
FINANCIAL TABLES FOLLOW
Non-GAAP Financial Measures
The discussion below contains "non-GAAP financial measures."
These are financial measures which either exclude or include
amounts that are not excluded or included in the most directly
comparable measures calculated and presented in accordance with
generally accepted accounting principles in the United States ("GAAP"). Specifically, we
make use of the non-GAAP financial measure "Adjusted EBITDA,"
"Non-GAAP coal revenues," "Non-GAAP cost of coal sales," "Adjusted
cost of produced coal sold" and "Non-GAAP SG&A." We use
Adjusted EBITDA to measure the operating performance of our
segments and allocate resources to the segments. Adjusted EBITDA
does not purport to be an alternative to net income (loss) as a
measure of operating performance. We use Non-GAAP coal revenues to
present coal revenues generated, excluding freight and handling
fulfillment revenues. Coal sales realization per ton for our
operations is calculated as Non-GAAP coal revenues divided by tons
sold. We use Non-GAAP cost of coal sales to adjust cost of coal
sales to remove freight and handling costs, idled and closed mine
costs and coal inventory acquisition accounting impacts. Cost of
coal sales per ton for our operations is calculated as non-GAAP
cost of coal sales divided by tons sold. Coal margin per ton for
our coal operations is calculated as coal sales realization per ton
for our coal operations less cost of coal sales per ton for our
coal operations. We also use Adjusted cost of produced coal sold to
distinguish the cost of captive produced coal from the effects of
purchased coal. We use Non-GAAP SG&A to adjust SG&A to
remove non-cash stock compensation and one-time expenses. The
presentation of these measures should not be considered in
isolation, or as a substitute for analysis of our results as
reported under GAAP.
Management uses non-GAAP financial measures to supplement GAAP
results to provide a more complete understanding of the factors and
trends affecting the business than GAAP results alone. The
definition of these non-GAAP measures may be changed periodically
by management to adjust for significant items important to an
understanding of operating trends. Because not all companies use
identical calculations, the presentations of these measures may not
be comparable to other similarly titled measures of other companies
and can differ significantly from company to company depending on
long-term strategic decisions regarding capital structure, the tax
jurisdictions in which companies operate, and capital
investments.
Included below are reconciliations of non-GAAP financial
measures to GAAP financial measures.
CONTURA ENERGY,
INC. AND SUBSIDIARIES
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(Amounts in
thousands, except share and per share data)
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Revenues:
|
|
|
|
|
|
|
|
Coal
revenues
|
$
|
523,987
|
|
|
$
|
443,005
|
|
|
$
|
1,784,775
|
|
|
$
|
1,446,538
|
|
Other
revenues
|
1,877
|
|
|
4,866
|
|
|
6,409
|
|
|
12,583
|
|
Total
revenues
|
525,864
|
|
|
447,871
|
|
|
1,791,184
|
|
|
1,459,121
|
|
Costs and
expenses:
|
|
|
|
|
|
|
|
Cost of coal sales
(exclusive of items shown
separately below)
|
467,658
|
|
|
397,241
|
|
|
1,480,098
|
|
|
1,199,289
|
|
Depreciation,
depletion and amortization
|
60,842
|
|
|
11,141
|
|
|
184,927
|
|
|
33,951
|
|
Accretion on asset
retirement obligations
|
6,846
|
|
|
1,489
|
|
|
19,925
|
|
|
5,545
|
|
Amortization of
acquired intangibles, net
|
2,314
|
|
|
1,158
|
|
|
(4,712)
|
|
|
12,468
|
|
Asset
impairment
|
32
|
|
|
—
|
|
|
5,858
|
|
|
—
|
|
Selling, general and
administrative expenses
(exclusive of depreciation, depletion and
amortization shown separately above)
|
17,387
|
|
|
12,382
|
|
|
53,121
|
|
|
43,490
|
|
Merger related
costs
|
68
|
|
|
1,181
|
|
|
1,055
|
|
|
5,064
|
|
Total other operating
(income) loss:
|
|
|
|
|
|
|
|
Mark-to-market
adjustment for acquisition-related
obligations
|
(3,238)
|
|
|
—
|
|
|
(288)
|
|
|
—
|
|
Other expenses
(income)
|
166
|
|
|
(569)
|
|
|
(7,319)
|
|
|
(17,075)
|
|
Total costs and
expenses
|
552,075
|
|
|
424,023
|
|
|
1,732,665
|
|
|
1,282,732
|
|
(Loss) income from
operations
|
(26,211)
|
|
|
23,848
|
|
|
58,519
|
|
|
176,389
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
Interest
expense
|
(18,847)
|
|
|
(8,554)
|
|
|
(50,079)
|
|
|
(26,538)
|
|
Interest
income
|
1,763
|
|
|
507
|
|
|
5,584
|
|
|
829
|
|
Loss on modification
and extinguishment of debt
|
—
|
|
|
—
|
|
|
(26,459)
|
|
|
—
|
|
Equity loss in
affiliates
|
(1,845)
|
|
|
(1,624)
|
|
|
(4,804)
|
|
|
(2,857)
|
|
Miscellaneous loss,
net
|
(1,523)
|
|
|
(154)
|
|
|
(2,912)
|
|
|
(737)
|
|
Total other expense,
net
|
(20,452)
|
|
|
(9,825)
|
|
|
(78,670)
|
|
|
(29,303)
|
|
(Loss) income from
continuing operations before
income taxes
|
(46,663)
|
|
|
14,023
|
|
|
(20,151)
|
|
|
147,086
|
|
Income tax benefit
(expense)
|
3,102
|
|
|
(12)
|
|
|
8,880
|
|
|
(133)
|
|
Net (loss) income
from continuing operations
|
(43,561)
|
|
|
14,011
|
|
|
(11,271)
|
|
|
146,953
|
|
Discontinued
operations:
|
|
|
|
|
|
|
|
Loss from
discontinued operations before income taxes
|
(11,516)
|
|
|
(2,117)
|
|
|
(176,973)
|
|
|
(4,330)
|
|
Income tax (expense)
benefit from discontinued
operations
|
(13,455)
|
|
|
—
|
|
|
12,866
|
|
|
—
|
|
Loss from
discontinued operations
|
(24,971)
|
|
|
(2,117)
|
|
|
(164,107)
|
|
|
(4,330)
|
|
Net (loss)
income
|
$
|
(68,532)
|
|
|
$
|
11,894
|
|
|
$
|
(175,378)
|
|
|
$
|
142,623
|
|
|
|
|
|
|
|
|
|
Basic (loss) income
per common share:
|
|
|
|
|
|
|
|
(Loss) income from
continuing operations
|
$
|
(2.29)
|
|
|
$
|
1.45
|
|
|
$
|
(0.59)
|
|
|
$
|
15.30
|
|
Loss from
discontinued operations
|
(1.31)
|
|
|
(0.22)
|
|
|
(8.63)
|
|
|
(0.45)
|
|
Net (loss)
income
|
$
|
(3.60)
|
|
|
$
|
1.23
|
|
|
$
|
(9.22)
|
|
|
$
|
14.85
|
|
|
|
|
|
|
|
|
|
Diluted (loss) income
per common share
|
|
|
|
|
|
|
|
(Loss) income from
continuing operations
|
$
|
(2.29)
|
|
|
$
|
1.35
|
|
|
$
|
(0.59)
|
|
|
$
|
14.23
|
|
Loss from
discontinued operations
|
(1.31)
|
|
|
(0.20)
|
|
|
(8.63)
|
|
|
(0.42)
|
|
Net (loss)
income
|
$
|
(3.60)
|
|
|
$
|
1.15
|
|
|
$
|
(9.22)
|
|
|
$
|
13.81
|
|
|
|
|
|
|
|
|
|
Weighted average
shares - basic
|
19,025,462
|
|
|
9,633,164
|
|
|
19,014,974
|
|
|
9,602,860
|
|
Weighted average
shares - diluted
|
19,025,462
|
|
|
10,384,513
|
|
|
19,014,974
|
|
|
10,328,031
|
|
CONTURA ENERGY,
INC. AND SUBSIDIARIES
CONDENSED
CONSOLIDATED BALANCE SHEETS (Unaudited)
(Amounts in
thousands, except share and per share data)
|
|
|
September 30,
2019
|
|
December 31,
2018
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
152,638
|
|
|
$
|
233,599
|
|
Trade accounts
receivable, net of allowance for doubtful accounts of $0 as of
September
30, 2019 and December 31, 2018
|
259,931
|
|
|
292,617
|
|
Inventories,
net
|
172,591
|
|
|
121,965
|
|
Prepaid expenses and
other current assets
|
181,903
|
|
|
158,945
|
|
Current assets -
discontinued operations
|
3,401
|
|
|
22,475
|
|
Total current
assets
|
770,464
|
|
|
829,601
|
|
Property, plant, and
equipment, net of accumulated depreciation and amortization of
$274,704 and $106,766 as of September 30, 2019 and December 31,
2018
|
614,624
|
|
|
699,990
|
|
Owned and leased
mineral rights, net of accumulated depletion and amortization
of
$23,877 and $11,390 as of September 30, 2019 and December 31,
2018
|
572,620
|
|
|
528,232
|
|
Goodwill
|
124,353
|
|
|
95,624
|
|
Other acquired
intangibles, net of accumulated amortization of $39,820 and $20,267
as
of September 30, 2019 and December 31, 2018
|
138,725
|
|
|
154,584
|
|
Long-term restricted
cash
|
209,041
|
|
|
227,173
|
|
Deferred income
taxes
|
50,516
|
|
|
27,179
|
|
Other non-current
assets
|
189,545
|
|
|
183,675
|
|
Total
assets
|
$
|
2,669,888
|
|
|
$
|
2,746,058
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
Current
liabilities:
|
|
|
|
Current portion of
long-term debt
|
$
|
28,982
|
|
|
$
|
42,743
|
|
Acquisition-related
obligations - current
|
33,165
|
|
|
27,334
|
|
Trade accounts
payable
|
98,607
|
|
|
114,568
|
|
Accrued expenses and
other current liabilities
|
148,984
|
|
|
148,699
|
|
Current liabilities -
discontinued operations
|
20,439
|
|
|
21,892
|
|
Total current
liabilities
|
330,177
|
|
|
355,236
|
|
Long-term
debt
|
563,846
|
|
|
545,269
|
|
Acquisition-related
obligations - long-term
|
51,853
|
|
|
72,996
|
|
Workers' compensation
and black lung obligations
|
260,070
|
|
|
249,294
|
|
Pension
obligations
|
176,389
|
|
|
180,802
|
|
Asset retirement
obligations
|
223,156
|
|
|
203,694
|
|
Deferred income
taxes
|
8,300
|
|
|
15,118
|
|
Other non-current
liabilities
|
35,161
|
|
|
52,415
|
|
Non-current
liabilities - discontinued operations
|
151,998
|
|
|
94
|
|
Total
liabilities
|
1,800,950
|
|
|
1,674,918
|
|
Commitments and
Contingencies
|
|
|
|
Stockholders'
Equity
|
|
|
|
Preferred stock - par
value $0.01, 5.0 million shares authorized, none issued
|
—
|
|
|
—
|
|
Common stock - par
value $0.01, 50.0 million shares authorized, 20.5 million
issued and
18.2 million outstanding at September 30, 2019 and 20.2 million
issued and 19.1 million
outstanding at December 31, 2018
|
205
|
|
|
202
|
|
Additional paid-in
capital
|
770,822
|
|
|
761,301
|
|
Accumulated other
comprehensive loss
|
(22,140)
|
|
|
(23,130)
|
|
Treasury stock, at
cost: 2.3 million shares at September 30, 2019 and 1.1 million
shares
at December 31, 2018
|
(107,700)
|
|
|
(70,362)
|
|
Retained
earnings
|
227,751
|
|
|
403,129
|
|
Total stockholders'
equity
|
868,938
|
|
|
1,071,140
|
|
Total liabilities and
stockholders' equity
|
$
|
2,669,888
|
|
|
$
|
2,746,058
|
|
CONTURA ENERGY,
INC. AND SUBSIDIARIES
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(Amounts in
thousands)
|
|
|
Nine Months Ended
September 30,
|
|
2019
|
|
2018
|
Operating
activities:
|
|
|
|
Net (loss)
income
|
$
|
(175,378)
|
|
|
$
|
142,623
|
|
Adjustments to
reconcile net (loss) income to net cash provided by operating
activities:
|
|
|
|
Depreciation,
depletion and amortization
|
330,840
|
|
|
33,951
|
|
Amortization of
acquired intangibles, net
|
(4,712)
|
|
|
12,468
|
|
Accretion of
acquisition-related obligations discount
|
4,367
|
|
|
4,165
|
|
Amortization of debt
issuance costs and accretion of debt discount
|
10,446
|
|
|
2,264
|
|
Mark-to-market
adjustment for acquisition-related obligations
|
(288)
|
|
|
—
|
|
Loss (gain) on
disposal of assets
|
1,462
|
|
|
(17,103)
|
|
Gain on assets
acquired in an exchange transaction
|
(9,083)
|
|
|
—
|
|
Loss on modification
and extinguishment of debt
|
26,459
|
|
|
—
|
|
Asset
impairment
|
23,020
|
|
|
—
|
|
Accretion on asset
retirement obligations
|
24,906
|
|
|
5,545
|
|
Employee benefit
plans, net
|
14,513
|
|
|
6,551
|
|
Deferred income
taxes
|
(22,021)
|
|
|
—
|
|
Stock-based
compensation
|
7,512
|
|
|
9,472
|
|
Equity loss in
affiliates
|
4,804
|
|
|
2,857
|
|
Other, net
|
351
|
|
|
610
|
|
Changes in operating
assets and liabilities
|
(99,620)
|
|
|
(27,087)
|
|
Net cash provided
by operating activities
|
137,578
|
|
|
176,316
|
|
Investing
activities:
|
|
|
|
Capital
expenditures
|
(144,183)
|
|
|
(56,722)
|
|
Payments on disposal
of assets
|
—
|
|
|
(10,250)
|
|
Proceeds on disposal
of assets
|
1,170
|
|
|
647
|
|
Purchases of
investment securities
|
(65,193)
|
|
|
—
|
|
Maturity of
investment securities
|
50,775
|
|
|
—
|
|
Capital contributions
to equity affiliates
|
(7,600)
|
|
|
(3,759)
|
|
Other, net
|
(2,548)
|
|
|
(1,455)
|
|
Net cash used in
investing activities
|
(167,579)
|
|
|
(71,539)
|
|
Financing
activities:
|
|
|
|
Proceeds from
borrowings on debt
|
544,946
|
|
|
—
|
|
Principal repayments
of debt
|
(551,405)
|
|
|
(6,323)
|
|
Principal repayments
of notes payable
|
(14,054)
|
|
|
(3,094)
|
|
Principal repayments
of financing lease obligations
|
(2,960)
|
|
|
(221)
|
|
Debt issuance
costs
|
(6,104)
|
|
|
(466)
|
|
Common stock
repurchases and related expenses
|
(35,485)
|
|
|
(4,839)
|
|
Other, net
|
952
|
|
|
70
|
|
Net cash used in
financing activities
|
(64,110)
|
|
|
(14,873)
|
|
Net (decrease)
increase in cash and cash equivalents and restricted
cash
|
(94,111)
|
|
|
89,904
|
|
Cash and cash
equivalents and restricted cash at beginning of period
|
477,246
|
|
|
193,960
|
|
Cash and cash
equivalents and restricted cash at end of period
|
$
|
383,135
|
|
|
$
|
283,864
|
|
The following table provides a reconciliation of cash and cash
equivalents and restricted cash reported within the Condensed
Consolidated Balance Sheets that sum to the total of the same such
amounts shown in the Condensed Consolidated Statements of Cash
Flows.
|
As of September
30,
|
|
2019
|
|
2018
|
Cash and cash
equivalents
|
$
|
152,638
|
|
|
$
|
238,129
|
|
Short-term restricted
cash (included in Prepaid expenses and other current
assets)
|
21,456
|
|
|
8,853
|
|
Long-term restricted
cash
|
209,041
|
|
|
36,882
|
|
Total cash and cash
equivalents and restricted cash shown in the Condensed
Consolidated Statements of Cash Flows
|
$
|
383,135
|
|
|
$
|
283,864
|
|
CONTURA ENERGY,
INC. AND SUBSIDIARIES
ADJUSTED EBITDA
RECONCILIATION
(Amounts in
thousands)
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
June 30,
2019
|
|
September 30,
2019
|
|
September 30,
2018
|
|
September 30,
2019
|
|
September 30,
2018
|
Net income (loss)
from continuing operations
|
$
|
24,300
|
|
|
$
|
(43,561)
|
|
|
$
|
14,011
|
|
|
$
|
(11,271)
|
|
|
$
|
146,953
|
|
Interest
expense
|
16,077
|
|
|
18,847
|
|
|
8,554
|
|
|
50,079
|
|
|
26,538
|
|
Interest
income
|
(1,885)
|
|
|
(1,763)
|
|
|
(507)
|
|
|
(5,584)
|
|
|
(829)
|
|
Income tax (benefit)
expense
|
(1,000)
|
|
|
(3,102)
|
|
|
12
|
|
|
(8,880)
|
|
|
133
|
|
Depreciation,
depletion and amortization
|
62,814
|
|
|
60,842
|
|
|
11,141
|
|
|
184,927
|
|
|
33,951
|
|
Merger related
costs
|
156
|
|
|
68
|
|
|
1,181
|
|
|
1,055
|
|
|
5,064
|
|
Management
restructuring costs (1)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,659
|
|
Non-cash stock
compensation expense
|
(546)
|
|
|
2,738
|
|
|
1,885
|
|
|
7,463
|
|
|
8,240
|
|
Mark-to-market
adjustment - acquisition-related obligations
|
1,014
|
|
|
(3,238)
|
|
|
—
|
|
|
(288)
|
|
|
—
|
|
Gain on settlement of
acquisition-related obligations
|
—
|
|
|
—
|
|
|
(118)
|
|
|
—
|
|
|
(410)
|
|
Gain on sale of
disposal group (2)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(16,386)
|
|
Accretion on asset
retirement obligations
|
6,847
|
|
|
6,846
|
|
|
1,489
|
|
|
19,925
|
|
|
5,545
|
|
Loss on modification
and extinguishment of debt
|
26,459
|
|
|
—
|
|
|
—
|
|
|
26,459
|
|
|
—
|
|
Asset impairment
(3)
|
5,826
|
|
|
32
|
|
|
—
|
|
|
5,858
|
|
|
—
|
|
Cost impact of coal
inventory fair value adjustment (4)
|
1,033
|
|
|
—
|
|
|
—
|
|
|
8,209
|
|
|
—
|
|
Gain on assets
acquired in an exchange transaction (5)
|
—
|
|
|
—
|
|
|
—
|
|
|
(9,083)
|
|
|
—
|
|
Amortization of
acquired intangibles, net
|
(343)
|
|
|
2,314
|
|
|
1,158
|
|
|
(4,712)
|
|
|
12,468
|
|
Adjusted
EBITDA
|
$
|
140,752
|
|
|
$
|
40,023
|
|
|
$
|
38,806
|
|
|
$
|
264,157
|
|
|
$
|
223,926
|
|
|
(1)
Management restructuring costs are related to severance expense
associated with senior management changes in the nine months ended
September 30, 2018.
|
(2) During
the nine months ended September 30, 2018, the Company recorded a
gain on disposal of assets of $16,386 to the Company's CAPP - Met
segment within other expenses (income) in the Condensed
Consolidated Statements of Operations.
|
(3)
Asset impairment primarily related to the write-off of prepaid
purchased coal from Blackjewel as result of Blackjewel's Chapter 11
bankruptcy filing on July 1, 2019.
|
(4) The
cost impact of the coal inventory fair value adjustment as a result
of the Alpha Merger was completed during the three months ended
June 30, 2019.
|
(5) During
the nine months ended September 30, 2019, the Company entered into
an exchange transaction which primarily included the release of the
PRB overriding royalty interest owed to the Company in exchange for
met coal reserves which resulted in a gain of $9,083.
|
|
CONTURA ENERGY,
INC. AND SUBSIDIARIES
RESULTS OF
OPERATIONS
|
|
|
|
|
Three Months Ended
June 30, 2019
|
|
(In thousands,
except for per ton data)
|
CAPP -
Met
|
|
CAPP -
Thermal
|
|
NAPP
|
|
All
Other
|
|
Consolidated
|
|
Coal
revenues
|
$
|
494,093
|
|
|
$
|
81,701
|
|
|
$
|
78,034
|
|
|
$
|
—
|
|
|
$
|
653,828
|
|
|
Less: freight and
handling
fulfillment revenues
|
(67,728)
|
|
|
(8,190)
|
|
|
(1,794)
|
|
|
—
|
|
|
(77,712)
|
|
|
Non-GAAP coal
revenues
|
$
|
426,365
|
|
|
$
|
73,511
|
|
|
$
|
76,240
|
|
|
$
|
—
|
|
|
$
|
576,116
|
|
|
Tons sold
|
3,429
|
|
|
1,189
|
|
|
1,747
|
|
|
—
|
|
|
6,365
|
|
|
Coal sales
realization per ton (1)
|
$
|
124.34
|
|
|
$
|
61.83
|
|
|
$
|
43.64
|
|
|
$
|
—
|
|
|
$
|
90.51
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of coal
sales
|
$
|
369,703
|
|
|
$
|
69,932
|
|
|
$
|
56,433
|
|
|
$
|
678
|
|
|
$
|
496,746
|
|
|
Less: freight and
handling costs
|
(67,728)
|
|
|
(8,190)
|
|
|
(1,794)
|
|
|
—
|
|
|
(77,712)
|
|
|
Less: idled and
closed mine costs
|
(2,166)
|
|
|
(567)
|
|
|
(733)
|
|
|
(678)
|
|
|
(4,144)
|
|
|
Less: cost impact of
coal inventory
fair value adjustment (2)
|
(1,033)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,033)
|
|
|
Non-GAAP cost of coal
sales
|
$
|
298,776
|
|
|
$
|
61,175
|
|
|
$
|
53,906
|
|
|
$
|
—
|
|
|
$
|
413,857
|
|
|
Tons sold
|
3,429
|
|
|
1,189
|
|
|
1,747
|
|
|
—
|
|
|
6,365
|
|
|
Cost of coal sales
per ton (3)
|
$
|
87.13
|
|
|
$
|
51.45
|
|
|
$
|
30.86
|
|
|
$
|
—
|
|
|
$
|
65.02
|
|
|
Coal margin per ton
(4)
|
$
|
37.21
|
|
|
$
|
10.38
|
|
|
$
|
12.78
|
|
|
$
|
—
|
|
|
$
|
25.49
|
|
|
|
(1)
|
Coal sales
realization per ton for our operations is calculated as non-GAAP
coal revenues divided by tons sold.
|
(2)
|
The cost impact of
the coal inventory fair value adjustment as a result of the Alpha
Merger was completed during the three months ended June 30,
2019.
|
(3)
|
Cost of coal sales
per ton for our operations is calculated as non-GAAP cost of coal
sales divided by tons sold.
|
(4)
|
Coal margin per ton
for our coal operations is calculated as coal sales realization per
ton for our coal operations less cost of coal sales per ton for our
coal operations.
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30, 2019
|
|
(In thousands,
except for per ton data)
|
CAPP -
Met
|
|
CAPP -
Thermal
|
|
NAPP
|
|
All
Other
|
|
Consolidated
|
|
Coal
revenues
|
$
|
373,078
|
|
|
$
|
80,174
|
|
|
$
|
70,735
|
|
|
$
|
—
|
|
|
$
|
523,987
|
|
|
Less: freight and
handling fulfillment revenues
|
(50,100)
|
|
|
(9,869)
|
|
|
(2,961)
|
|
|
—
|
|
|
(62,930)
|
|
|
Non-GAAP coal
revenues
|
$
|
322,978
|
|
|
$
|
70,305
|
|
|
$
|
67,774
|
|
|
$
|
—
|
|
|
$
|
461,057
|
|
|
Tons sold
|
2,981
|
|
|
1,144
|
|
|
1,640
|
|
|
—
|
|
|
5,765
|
|
|
Coal sales
realization per ton (1)
|
$
|
108.35
|
|
|
$
|
61.46
|
|
|
$
|
41.33
|
|
|
$
|
—
|
|
|
$
|
79.98
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of coal
sales
|
$
|
312,369
|
|
|
$
|
78,022
|
|
|
$
|
75,571
|
|
|
$
|
1,696
|
|
|
$
|
467,658
|
|
|
Less: freight and
handling costs
|
(50,100)
|
|
|
(9,869)
|
|
|
(2,961)
|
|
|
—
|
|
|
(62,930)
|
|
|
Less: idled and
closed mine costs
|
(1,956)
|
|
|
(458)
|
|
|
(659)
|
|
|
(1,696)
|
|
|
(4,769)
|
|
|
Non-GAAP cost of coal
sales
|
$
|
260,313
|
|
|
$
|
67,695
|
|
|
$
|
71,951
|
|
|
$
|
—
|
|
|
$
|
399,959
|
|
|
Tons sold
|
2,981
|
|
|
1,144
|
|
|
1,640
|
|
|
—
|
|
|
5,765
|
|
|
Cost of coal sales
per ton (2)
|
$
|
87.32
|
|
|
$
|
59.17
|
|
|
$
|
43.87
|
|
|
$
|
—
|
|
|
$
|
69.38
|
|
|
Coal margin per ton
(3)
|
$
|
21.03
|
|
|
$
|
2.29
|
|
|
$
|
(2.54)
|
|
|
$
|
—
|
|
|
$
|
10.60
|
|
|
|
(1)
|
Coal sales
realization per ton for our operations is calculated as non-GAAP
coal revenues divided by tons sold.
|
(2)
|
Cost of coal sales
per ton for our operations is calculated as non-GAAP cost of coal
sales divided by tons sold.
|
(3)
|
Coal margin per ton
for our coal operations is calculated as coal sales realization per
ton for our coal operations less cost of coal sales per ton for our
coal operations.
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30, 2018
|
|
(In thousands,
except for per ton data)
|
CAPP -
Met
|
|
CAPP -
Thermal
|
|
NAPP
|
|
All
Other
|
|
Consolidated
|
|
Coal
revenues
|
$
|
375,936
|
|
|
$
|
—
|
|
|
$
|
67,069
|
|
|
$
|
—
|
|
|
$
|
443,005
|
|
|
Less: freight and
handling fulfillment revenues
|
(77,434)
|
|
|
—
|
|
|
(8,006)
|
|
|
—
|
|
|
(85,440)
|
|
|
Non-GAAP coal
revenues
|
$
|
298,502
|
|
|
$
|
—
|
|
|
$
|
59,063
|
|
|
$
|
—
|
|
|
$
|
357,565
|
|
|
Tons sold
|
2,563
|
|
|
—
|
|
|
1,316
|
|
|
—
|
|
|
3,879
|
|
|
Coal sales
realization per ton (1)
|
$
|
116.47
|
|
|
$
|
—
|
|
|
$
|
44.88
|
|
|
$
|
—
|
|
|
$
|
92.18
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of coal
sales
|
$
|
329,155
|
|
|
$
|
—
|
|
|
$
|
68,086
|
|
|
$
|
—
|
|
|
$
|
397,241
|
|
|
Less: freight and
handling costs
|
(77,434)
|
|
|
—
|
|
|
(8,006)
|
|
|
—
|
|
|
(85,440)
|
|
|
Less: idled and
closed mine costs
|
(707)
|
|
|
—
|
|
|
(1,030)
|
|
|
—
|
|
|
(1,737)
|
|
|
Non-GAAP cost of coal
sales
|
$
|
251,014
|
|
|
$
|
—
|
|
|
$
|
59,050
|
|
|
$
|
—
|
|
|
$
|
310,064
|
|
|
Tons sold
|
2,563
|
|
|
—
|
|
|
1,316
|
|
|
—
|
|
|
3,879
|
|
|
Cost of coal sales
per ton (2)
|
$
|
97.94
|
|
|
$
|
—
|
|
|
$
|
44.87
|
|
|
$
|
—
|
|
|
$
|
79.93
|
|
|
Coal margin per ton
(3)
|
$
|
18.53
|
|
|
$
|
—
|
|
|
$
|
0.01
|
|
|
$
|
—
|
|
|
$
|
12.25
|
|
|
|
(1)
|
Coal sales
realization per ton for our operations is calculated as non-GAAP
coal revenues divided by tons sold.
|
(2)
|
Cost of coal sales
per ton for our operations is calculated as non-GAAP cost of coal
sales divided by tons sold.
|
(3)
|
Coal margin per ton
for our coal operations is calculated as coal sales realization per
ton for our coal operations less cost of coal sales per ton for our
coal operations.
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 30, 2019
|
|
(In thousands,
except for per ton data)
|
CAPP -
Met
|
|
CAPP -
Thermal
|
|
NAPP
|
|
All
Other
|
|
Consolidated
|
|
Coal
revenues
|
$
|
1,339,663
|
|
|
$
|
224,814
|
|
|
$
|
220,298
|
|
|
$
|
—
|
|
|
$
|
1,784,775
|
|
|
Less: freight and
handling fulfillment revenues
|
(182,729)
|
|
|
(23,683)
|
|
|
(5,430)
|
|
|
—
|
|
|
(211,842)
|
|
|
Non-GAAP coal
revenues
|
$
|
1,156,934
|
|
|
$
|
201,131
|
|
|
$
|
214,868
|
|
|
$
|
—
|
|
|
$
|
1,572,933
|
|
|
Tons sold
|
9,653
|
|
|
3,325
|
|
|
5,039
|
|
|
—
|
|
|
18,017
|
|
|
Coal sales
realization per ton (1)
|
$
|
119.85
|
|
|
$
|
60.49
|
|
|
$
|
42.64
|
|
|
$
|
—
|
|
|
$
|
87.30
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of coal
sales
|
$
|
1,057,988
|
|
|
$
|
218,667
|
|
|
$
|
199,566
|
|
|
$
|
3,877
|
|
|
$
|
1,480,098
|
|
|
Less: freight and
handling costs
|
(182,729)
|
|
|
(23,683)
|
|
|
(5,430)
|
|
|
—
|
|
|
(211,842)
|
|
|
Less: idled and
closed mine costs
|
(5,942)
|
|
|
(1,442)
|
|
|
(2,222)
|
|
|
(3,877)
|
|
|
(13,483)
|
|
|
Less: cost impact of
coal inventory fair value adjustment (2)
|
(4,751)
|
|
|
(3,458)
|
|
|
—
|
|
|
—
|
|
|
(8,209)
|
|
|
Non-GAAP cost of coal
sales
|
$
|
864,566
|
|
|
$
|
190,084
|
|
|
$
|
191,914
|
|
|
$
|
—
|
|
|
$
|
1,246,564
|
|
|
Tons sold
|
9,653
|
|
|
3,325
|
|
|
5,039
|
|
|
—
|
|
|
18,017
|
|
|
Cost of coal sales
per ton (3)
|
$
|
89.56
|
|
|
$
|
57.17
|
|
|
$
|
38.09
|
|
|
$
|
—
|
|
|
$
|
69.19
|
|
|
Coal margin per ton
(4)
|
$
|
30.29
|
|
|
$
|
3.32
|
|
|
$
|
4.55
|
|
|
$
|
—
|
|
|
$
|
18.11
|
|
|
|
(1)
|
Coal sales
realization per ton for our operations is calculated as non-GAAP
coal revenues divided by tons sold.
|
(2)
|
The cost impact of
the coal inventory fair value adjustment as a result of the Alpha
Merger was completed during the three months ended June 30,
2019.
|
(3)
|
Cost of coal sales
per ton for our operations is calculated as non-GAAP cost of coal
sales divided by tons sold.
|
(4)
|
Coal margin per ton
for our coal operations is calculated as coal sales realization per
ton for our coal operations less cost of coal sales per ton for our
coal operations.
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 30, 2018
|
|
(In thousands,
except for per ton data)
|
CAPP -
Met
|
|
CAPP -
Thermal
|
|
NAPP
|
|
All
Other
|
|
Consolidated
|
|
Coal
revenues
|
$
|
1,235,772
|
|
|
$
|
—
|
|
|
$
|
210,766
|
|
|
$
|
—
|
|
|
$
|
1,446,538
|
|
|
Less: freight and
handling fulfillment revenues
|
(232,199)
|
|
|
—
|
|
|
(19,537)
|
|
|
—
|
|
|
(251,736)
|
|
|
Non-GAAP coal
revenues
|
$
|
1,003,573
|
|
|
$
|
—
|
|
|
$
|
191,229
|
|
|
$
|
—
|
|
|
$
|
1,194,802
|
|
|
Tons sold
|
7,779
|
|
|
—
|
|
|
4,302
|
|
|
—
|
|
|
12,081
|
|
|
Coal sales
realization per ton (1)
|
$
|
129.01
|
|
|
$
|
—
|
|
|
$
|
44.45
|
|
|
$
|
—
|
|
|
$
|
98.90
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of coal
sales
|
$
|
1,002,438
|
|
|
$
|
—
|
|
|
$
|
196,851
|
|
|
$
|
—
|
|
|
$
|
1,199,289
|
|
|
Less: freight and
handling costs
|
(232,199)
|
|
|
—
|
|
|
(19,537)
|
|
|
—
|
|
|
(251,736)
|
|
|
Less: idled and
closed mine costs
|
(2,786)
|
|
|
—
|
|
|
(2,740)
|
|
|
—
|
|
|
(5,526)
|
|
|
Non-GAAP cost of coal
sales
|
$
|
767,453
|
|
|
$
|
—
|
|
|
$
|
174,574
|
|
|
$
|
—
|
|
|
$
|
942,027
|
|
|
Tons sold
|
7,779
|
|
|
—
|
|
|
4,302
|
|
|
—
|
|
|
12,081
|
|
|
Cost of coal sales
per ton (2)
|
$
|
98.66
|
|
|
$
|
—
|
|
|
$
|
40.58
|
|
|
$
|
—
|
|
|
$
|
77.98
|
|
|
Coal margin per ton
(3)
|
$
|
30.35
|
|
|
$
|
—
|
|
|
$
|
3.87
|
|
|
$
|
—
|
|
|
$
|
20.92
|
|
|
|
(1)
|
Coal sales
realization per ton for our operations is calculated as non-GAAP
coal revenues divided by tons sold.
|
(2)
|
Cost of coal sales
per ton for our operations is calculated as non-GAAP cost of coal
sales divided by tons sold.
|
(3)
|
Coal margin per ton
for our coal operations is calculated as coal sales realization per
ton for our coal operations less cost of coal sales per ton for our
coal operations.
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30, 2019
|
|
(In thousands,
except for per ton data)
|
CAPP -
Met
|
|
CAPP -
Thermal
|
|
NAPP
|
|
All
Other
|
|
Consolidated
|
|
Non-GAAP cost of coal
sales
|
$
|
298,776
|
|
|
$
|
61,175
|
|
|
$
|
53,906
|
|
|
$
|
(208)
|
|
|
$
|
413,649
|
|
|
Less: cost of
purchased coal sold
|
(67,320)
|
|
|
(2,443)
|
|
|
—
|
|
|
—
|
|
|
(69,763)
|
|
|
Adjusted cost of
produced coal sold
|
$
|
231,456
|
|
|
$
|
58,732
|
|
|
$
|
53,906
|
|
|
$
|
(208)
|
|
|
$
|
343,886
|
|
|
Produced tons
sold
|
2,819
|
|
|
1,144
|
|
|
1,747
|
|
|
—
|
|
|
5,710
|
|
|
Adjusted cost of
produced coal sold per ton (1)
|
$
|
82.11
|
|
|
$
|
51.34
|
|
|
$
|
30.86
|
|
|
$
|
—
|
|
|
$
|
60.23
|
|
|
|
(1)
|
Cost of produced coal
sold per ton for our operations is calculated as non-GAAP cost of
produced coal sold divided by produced tons sold.
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30, 2019
|
|
(In thousands,
except for per ton data)
|
CAPP -
Met
|
|
CAPP -
Thermal
|
|
NAPP
|
|
All
Other
|
|
Consolidated
|
|
Non-GAAP cost of coal
sales
|
$
|
260,313
|
|
|
$
|
67,695
|
|
|
$
|
71,951
|
|
|
$
|
—
|
|
|
$
|
399,959
|
|
|
Less: cost of
purchased coal sold
|
(47,731)
|
|
|
(1,050)
|
|
|
—
|
|
|
—
|
|
|
(48,781)
|
|
|
Adjusted cost of
produced coal sold
|
$
|
212,582
|
|
|
$
|
66,645
|
|
|
$
|
71,951
|
|
|
$
|
—
|
|
|
$
|
351,178
|
|
|
Produced tons
sold
|
2,558
|
|
|
1,127
|
|
|
1,640
|
|
|
—
|
|
|
5,325
|
|
|
Adjusted cost of
produced coal sold per ton (1)
|
$
|
83.10
|
|
|
$
|
59.13
|
|
|
$
|
43.87
|
|
|
$
|
—
|
|
|
$
|
65.95
|
|
|
|
(1)
|
Cost of produced coal
sold per ton for our operations is calculated as non-GAAP cost of
produced coal sold divided by produced tons sold.
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30, 2018
|
|
(In thousands,
except for per ton data)
|
CAPP -
Met
|
|
CAPP -
Thermal
|
|
NAPP
|
|
All
Other
|
|
Consolidated
|
|
Non-GAAP cost of coal
sales
|
$
|
251,014
|
|
|
$
|
—
|
|
|
$
|
59,050
|
|
|
$
|
—
|
|
|
$
|
310,064
|
|
|
Less: cost of
purchased coal sold
|
(180,450)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(180,450)
|
|
|
Adjusted cost of
produced coal sold
|
$
|
70,564
|
|
|
$
|
—
|
|
|
$
|
59,050
|
|
|
$
|
—
|
|
|
$
|
129,614
|
|
|
Produced tons
sold
|
859
|
|
|
—
|
|
|
1,316
|
|
|
—
|
|
|
2,175
|
|
|
Adjusted cost of
produced coal sold per ton (1)
|
$
|
82.15
|
|
|
$
|
—
|
|
|
$
|
44.87
|
|
|
$
|
—
|
|
|
$
|
59.59
|
|
|
|
(1)
|
Cost of produced coal
sold per ton for our operations is calculated as non-GAAP cost of
produced coal sold divided by produced tons sold.
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 30, 2019
|
|
(In thousands,
except for per ton data)
|
CAPP -
Met
|
|
CAPP -
Thermal
|
|
NAPP
|
|
All
Other
|
|
Consolidated
|
|
Non-GAAP cost of coal
sales
|
$
|
864,566
|
|
|
$
|
190,084
|
|
|
$
|
191,914
|
|
|
$
|
—
|
|
|
$
|
1,246,564
|
|
|
Less: cost of
purchased coal sold
|
(194,590)
|
|
|
(6,378)
|
|
|
—
|
|
|
—
|
|
|
(200,968)
|
|
|
Adjusted cost of
produced coal sold
|
$
|
669,976
|
|
|
$
|
183,706
|
|
|
$
|
191,914
|
|
|
$
|
—
|
|
|
$
|
1,045,596
|
|
|
Produced tons
sold
|
7,948
|
|
|
3,215
|
|
|
5,039
|
|
|
—
|
|
|
16,202
|
|
|
Adjusted cost of
produced coal sold per ton (1)
|
$
|
84.29
|
|
|
$
|
57.14
|
|
|
$
|
38.09
|
|
|
$
|
—
|
|
|
$
|
64.53
|
|
|
|
(1)
|
Cost of produced coal
sold per ton for our operations is calculated as non-GAAP cost of
produced coal sold divided by produced tons sold.
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 30, 2018
|
|
(In thousands,
except for per ton data)
|
CAPP -
Met
|
|
CAPP -
Thermal
|
|
NAPP
|
|
All
Other
|
|
Consolidated
|
|
Non-GAAP cost of coal
sales
|
$
|
767,453
|
|
|
$
|
—
|
|
|
$
|
174,574
|
|
|
$
|
—
|
|
|
$
|
942,027
|
|
|
Less: cost of
purchased coal sold
|
(550,508)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(550,508)
|
|
|
Adjusted cost of
produced coal sold
|
$
|
216,945
|
|
|
$
|
—
|
|
|
$
|
174,574
|
|
|
$
|
—
|
|
|
$
|
391,519
|
|
|
Produced tons
sold
|
2,841
|
|
|
—
|
|
|
4,302
|
|
|
—
|
|
|
7,143
|
|
|
Adjusted cost of
produced coal sold per ton (1)
|
$
|
76.36
|
|
|
$
|
—
|
|
|
$
|
40.58
|
|
|
$
|
—
|
|
|
$
|
54.81
|
|
|
|
(1)
|
Cost of produced coal
sold per ton for our operations is calculated as non-GAAP cost of
produced coal sold divided by produced tons sold.
|
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SOURCE Contura Energy, Inc.