Natural Resource Partners L.P. (NYSE:NRP) today reported
fourth quarter and full year 2020 results as follows:
For the Three Months
Ended
For the Year Ended
December 31,
December 31,
(In thousands) (Unaudited)
2020
2019
2020
2019
Net income (loss) from continuing
operations
$
14,687
$
(119,448)
$
(84,819)
$
(25,414)
Asset impairments
2,668
147,730
135,885
148,214
Net income from continuing operations
excluding asset impairments (1)
$
17,355
$
28,282
$
51,066
$
122,800
Adjusted EBITDA (1)
24,917
37,974
104,714
199,228
Cash flow provided by (used in) continuing
operations:
Operating activities
13,155
19,394
87,568
137,319
Investing activities
776
259
1,745
8,221
Financing activities
(29,714)
(33,551)
(87,788)
(253,305)
Distributable cash flow (1) (2)
13,932
19,602
90,248
144,933
Free cash flow (1)
13,815
19,764
88,690
139,040
Cash flow cushion (last twelve months)
(1)
(739)
7,762
____________________
(1)
See "Non-GAAP Financial Measures" and
reconciliation tables at the end of this release.
(2)
Includes net proceeds from the sale of the
construction aggregates business which are classified as investing
cash flow from discontinued operations.
"While 2020 proved to be a challenging year for us all, I'm
proud of the efforts and discipline of our team as they managed the
business safely and effectively over the course of the year. We
paid down $46 million of debt in 2020 and ended the year with $200
million of liquidity. As we look to 2021, demand for steel, energy
and soda ash continues to improve and we continue to focus on
maximizing unitholder value by de-levering the capital structure
while maintaining strong liquidity during these uncertain times,"
stated Craig Nunez, NRP's President and Chief Operating
Officer.
NRP's liquidity was $199.8 million at December 31, 2020,
consisting of $99.8 million of cash and $100.0 million of borrowing
capacity available under its revolving credit facility.
NRP declared a cash distribution of $0.45 per common unit and a
distribution of $7.6 million on its preferred units for the fourth
quarter of 2020. The preferred unit distribution included interest
on previously paid-in-kind units and was paid one-half in cash and
one-half in kind through the issuance of additional preferred
units. Future distributions on NRP's common and preferred units
will be determined on a quarterly basis by the Board of Directors.
The Board of Directors considers numerous factors each quarter in
determining cash distributions including profitability, cash flow,
debt service obligations, market conditions and outlook, estimated
unitholder income tax liability and the level of cash reserves that
the Board determines is necessary for future operating and capital
needs.
Segment Performance
Coal Royalty and Other
Revenues and other income in the fourth quarter and full year of
2020 were lower by $7.8 million and $87.3 million, respectively,
and free cash flow in the fourth quarter and full year of 2020 was
$5.1 million and $54.7 million lower, respectively, as compared to
the prior year periods. These decreases are primarily a result of a
weakened market for metallurgical coal in 2020 due to a decline in
global steel demand, and as a result, both sales volumes and prices
for metallurgical coal sold were lower in the fourth quarter and
full year of 2020 as compared to the prior year periods.
Approximately 70% of coal royalty revenues and approximately 60% of
coal royalty sales volumes were derived from metallurgical coal in
2020. In addition, weaker domestic and export thermal coal markets
compared to the prior year periods resulted in lower revenues from
NRP's thermal coal properties. Furthermore, the COVID-19 pandemic
compounded already weak coal pricing and demand, and NRP's coal
lessees saw significant negative impacts on their businesses.
NRP also recorded $2.7 million and $135.9 million in non-cash
asset impairment expense in the fourth quarter and full year of
2020, respectively, as compared to $147.7 million and $148.2
million in non-cash asset impairment expense for the fourth quarter
and full year of 2019, respectively. Asset impairments in 2020
primarily related to weak coal markets that were compounded by the
COVID-19 pandemic and resulted in the termination of certain coal
leases, changes to lessee mine plans resulting in permanent moves
off of certain coal properties and decreased oil and gas drilling
activity which negatively impacted the outlook for NRP's frac sand
properties.
Domestic and export thermal coal markets remain challenged by
lower utility demand, continued low natural gas prices, the secular
shift to renewable energy and the ongoing negative effects from the
COVID-19 pandemic. Metallurgical coal markets also remain
challenged by the uncertainties around the COVID-19 pandemic, but
prices have rebounded from the lows seen in the second quarter of
2020.
In addition to actively managing its currently producing coal
and hard mineral properties over the last year, NRP has also been
working to identify potential alternative revenue sources across
its coal and hard mineral property portfolio. The Partnership has
been evaluating opportunities which may exist in its surface and
mineral property assets, where coal or other hard mineral
development operations have ceased or have never been developed, as
locations for environmentally sustainable projects, such as carbon
sequestration or renewable energy projects. While NRP does not
expect these activities to generate significant revenues or cash
flow over the next several years, NRP believes its large ownership
footprint throughout the United States will provide opportunities
to create value in this regard with minimal capital investment by
the Partnership.
Soda Ash
Ciner Wyoming was negatively impacted by the COVID-19 pandemic
as lower demand for glass in the global auto, beverage container
and construction industries reduced demand for soda ash. Revenues
and other income in the fourth quarter and full year of 2020 were
lower by $4.7 million and $36.4 million, respectively, as compared
to the prior year periods primarily due to a combination of lower
pricing and volumes sold. Distributions received from Ciner Wyoming
were lower by $6.4 million and $17.6 million in the fourth quarter
and full year of 2020, respectively, as compared to prior year
periods due to Ciner Wyoming's decision to suspend distributions as
announced in August of 2020. While Ciner Wyoming has yet to recover
to pre-COVID-19 levels, fourth quarter 2020 overall sales volumes
increased 9.5% and overall production volumes increased 49.1% over
the third quarter 2020 results. NRP believes Ciner Wyoming's
facility is competitively positioned as one of the lowest cost
producers of soda ash in the world, however, NRP expects the market
to remain volatile as a result of ongoing uncertainties with the
COVID-19 pandemic.
As previously mentioned, Ciner Wyoming suspended its quarterly
distribution in August 2020 in an effort to achieve greater
financial and liquidity flexibility during the COVID-19 pandemic
and accordingly, did not pay quarterly distributions for the
second, third or fourth quarters of 2020. Ciner Wyoming will
continue to evaluate on a quarterly basis whether to reinstate the
distribution. Ciner Wyoming’s ability to pay future quarterly
distributions will be dependent in part on its cash reserves,
liquidity, total debt levels and anticipated capital
expenditures.
Corporate and Financing
Corporate and financing costs were $1.1 million and $38.3
million lower in the fourth quarter and full year of 2020,
respectively, as compared to the prior year periods. The decrease
in costs for the fourth quarter of 2020 is primarily due to lower
interest expense as a result of less debt outstanding. The decrease
in costs for the full year of 2020 is primarily due to the loss on
extinguishment of debt of $29.3 million related to the refinancing
and extension of both NRP's 2022 Senior Notes and revolving credit
facility in the second quarter of 2019, as well as lower interest
expense as a result of less debt outstanding. Free cash flow was
$5.5 million and $21.9 million higher in the fourth quarter and
full year of 2020, respectively, as compared to the prior year
periods primarily due to lower cash paid for interest as a result
of less debt outstanding in 2020.
As noted earlier, NRP declared a fourth quarter $7.6 million
distribution on its preferred units which was paid one-half in cash
and one-half in kind. The indenture governing the 2025 parent
company notes restricts NRP from paying more than one-half of the
quarterly distribution on the preferred units in cash if NRP's
consolidated leverage ratio exceeds 3.75x, and as of December 31,
2020, NRP's leverage ratio was 4.6x. NRP expect its leverage ratio
to continue to exceed 3.75x for the foreseeable future.
Conference Call
A conference call will be held today at 9:00 a.m. ET. To
register for the conference call, please use this link
http://www.directeventreg.com/registration/event/6473098. After
registering a confirmation will be sent via email, including dial
in details and unique conference call codes for entry. Registration
is open through the live call, however, to ensure you are connected
for the full call we suggest registering at least 10 minutes prior
to the start of the call. 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. In addition,
NRP owns an equity investment in Ciner Wyoming LLC, a trona ore
mining and soda ash production business.
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, among
other things, statements regarding: the effects of the global
COVID-19 pandemic; future distributions on the Partnership’s common
and preferred units; the Partnership's business strategy; its
liquidity and access to capital and financing sources; its
financial strategy; prices of and demand for coal, trona and soda
ash, and other natural resources; estimated revenues, expenses and
results of operations; projected future performance by the
Partnership's lessees, including Foresight Energy; Ciner Wyoming
LLC’s trona mining and soda ash refinery operations; distributions
from the soda ash joint venture; the impact of governmental
policies, laws and regulations, as well as regulatory and legal
proceedings involving the Partnership, and of scheduled or
potential regulatory or legal changes; global and U.S. economic
conditions; 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 or loss, 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 asset sales and disposals, including sales of
discontinued operations, and return of long-term contract
receivable; 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 receivable; less maintenance and
expansion capital expenditures, cash flow used in acquisition costs
classified as investing or 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.
"Cash flow cushion" is a non-GAAP financial measure that
we define as free cash flow less one-time beneficial items,
mandatory Opco debt repayments, 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 (loss) from
continuing operations plus financing costs (interest expense plus
loss on extinguishment of debt) 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 or loss, 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.
-Financial Tables and Reconciliation of
Non-GAAP Measures Follow-
Natural Resource Partners
L.P.
Financial Tables
(Unaudited)
Consolidated Statements of
Comprehensive Income (Loss)
For the Three Months
Ended
For the Year Ended
December 31,
September 30,
December 31,
(In thousands, except per unit
data)
2020
2019
2020
2020
2019
Revenues and other income
Coal royalty and other
$
31,327
$
37,032
$
25,740
$
120,166
$
191,069
Transportation and processing services
2,194
4,539
2,204
8,845
19,279
Equity in earnings of Ciner Wyoming
5,528
10,256
1,986
10,728
47,089
Gain (loss) on asset sales and
disposals
116
(111)
—
581
6,498
Total revenues and other income
$
39,165
$
51,716
$
29,930
$
140,320
$
263,935
Operating expenses
Operating and maintenance expenses
$
5,595
$
5,925
$
5,781
$
24,795
$
32,738
Depreciation, depletion and
amortization
3,013
3,186
2,111
9,198
14,932
General and administrative expenses
3,125
3,931
3,634
14,293
16,730
Asset impairments
2,668
147,730
934
135,885
148,214
Total operating expenses
$
14,401
$
160,772
$
12,460
$
184,171
$
212,614
Income (loss) from operations
$
24,764
$
(109,056)
$
17,470
$
(43,851)
$
51,321
Other expenses, net
Interest expense, net
$
(10,077)
$
(10,392)
$
(10,254)
$
(40,968)
$
(47,453)
Loss on extinguishment of debt
—
—
—
—
(29,282)
Total other expenses, net
$
(10,077)
$
(10,392)
$
(10,254)
$
(40,968)
$
(76,735)
Net income (loss) from continuing
operations
$
14,687
$
(119,448)
$
7,216
$
(84,819)
$
(25,414)
Income from discontinued operations
—
750
—
—
956
Net income (loss)
$
14,687
$
(118,698)
$
7,216
$
(84,819)
$
(24,458)
Less: income attributable to preferred
unitholders
(7,612)
(7,500)
(7,500)
(30,225)
(30,000)
Net income (loss) attributable to common
unitholders and the general partner
$
7,075
$
(126,198)
$
(284)
$
(115,044)
$
(54,458)
Net income (loss) attributable to common
unitholders
$
6,934
$
(123,674)
$
(279)
$
(112,743)
$
(53,369)
Net income (loss) attributable to the
general partner
141
(2,524)
(5)
(2,301)
(1,089)
Income (loss) from continuing operations
per common unit
Basic
$
0.57
$
(10.15)
$
(0.02)
$
(9.20)
$
(4.43)
Diluted
0.56
(10.15)
(0.02)
(9.20)
(4.43)
Net income (loss) per common unit
Basic
$
0.57
$
(10.09)
$
(0.02)
$
(9.20)
$
(4.35)
Diluted
0.56
(10.09)
(0.02)
(9.20)
(4.35)
Net income (loss)
$
14,687
$
(118,698)
$
7,216
$
(84,819)
$
(24,458)
Comprehensive income from unconsolidated
investment and other
152
1,208
2,428
2,916
868
Comprehensive income (loss)
$
14,839
$
(117,490)
9,644
$
(81,903)
$
(23,590)
Natural Resource Partners
L.P.
Financial Tables
(Unaudited)
Consolidated Statements of
Cash Flows
For the Three Months
Ended
For the Year Ended
December 31,
September 30,
December 31,
(In thousands)
2020
2019
2020
2020
2019
Cash flows from operating activities
Net income (loss)
$
14,687
$
(118,698)
$
7,216
$
(84,819)
$
(24,458)
Adjustments to reconcile net income (loss)
to net cash provided by operating activities of continuing
operations:
Depreciation, depletion and
amortization
3,013
3,186
2,111
9,198
14,932
Distributions from unconsolidated
investment
—
6,370
—
14,210
31,850
Equity earnings from unconsolidated
investment
(5,528)
(10,256)
(1,986)
(10,728)
(47,089)
Loss (gain) on asset sales and
disposals
(116)
111
—
(581)
(6,498)
Loss on extinguishment of debt
—
—
—
—
29,282
Income from discontinued operations
—
(750)
—
—
(956)
Asset impairments
2,668
147,730
934
135,885
148,214
Bad debt expense
86
620
258
4,001
7,462
Unit-based compensation expense
1,004
519
913
3,570
2,361
Amortization of debt issuance costs and
other
832
464
1,577
1,323
3,687
Change in operating assets and
liabilities:
Accounts receivable
4,859
(3,924)
4,621
12,853
(6,035)
Accounts payable
14
(412)
144
207
(1,234)
Accrued liabilities
780
1,427
791
(2,205)
(3,656)
Accrued interest
(7,559)
(12,048)
7,248
(602)
(12,029)
Deferred revenue
(461)
3,188
(273)
9,733
(732)
Other items, net
(1,124)
1,867
769
(4,477)
2,218
Net cash provided by operating activities
of continuing operations
$
13,155
$
19,394
$
24,323
$
87,568
$
137,319
Net cash provided by (used in) operating
activities of discontinued operations
—
(4)
—
1,706
(8)
Net cash provided by operating
activities
$
13,155
$
19,390
$
24,323
$
89,274
$
137,311
Cash flows from investing activities
Proceeds from asset sales and
disposals
$
116
$
(111)
$
—
$
623
$
6,500
Return of long-term contract
receivable
660
392
332
2,122
1,743
Acquisition of non-controlling interest in
BRP
—
—
—
(1,000)
—
Acquisition of mineral rights
—
(22)
—
—
(22)
Net cash provided by investing activities
of continuing operations
$
776
$
259
$
332
$
1,745
$
8,221
Net cash provided by (used in) investing
activities of discontinued operations
1
(73)
—
(65)
(629)
Net cash provided by investing
activities
$
777
$
186
$
332
$
1,680
$
7,592
Cash flows from financing activities
Debt borrowings
$
—
$
—
$
—
$
—
$
300,000
Debt repayments
(20,335)
(20,335)
(6,780)
(46,176)
(463,082)
Distributions to common unitholders and
general partner
(5,630)
(5,630)
(5,630)
(16,890)
(33,150)
Distributions to preferred unitholders
(3,750)
(7,500)
(7,500)
(26,363)
(30,000)
Contributions from (to) discontinued
operations
1
(77)
—
1,641
(637)
Debt issuance costs and other
—
(9)
—
—
(26,436)
Net cash used in financing activities of
continuing operations
$
(29,714)
$
(33,551)
$
(19,910)
$
(87,788)
$
(253,305)
Net cash provided by (used in) financing
activities of discontinued operations
(1)
77
—
(1,641)
637
Net cash used in financing activities
$
(29,715)
$
(33,474)
$
(19,910)
$
(89,429)
$
(252,668)
Net increase (decrease) in cash and cash
equivalents
$
(15,783)
$
(13,898)
$
4,745
$
1,525
$
(107,765)
Cash and cash equivalents at beginning of
period
115,573
112,163
110,828
98,265
206,030
Cash and cash equivalents at end of
period
$
99,790
$
98,265
$
115,573
$
99,790
$
98,265
Supplemental cash flow information:
Cash paid during the period for
interest
$
17,118
$
22,327
$
2,490
$
39,830
$
58,597
Non-cash investing and financing
activities:
Plant, equipment, mineral rights and other
funded with accounts payable or accrued liabilities
$
23
$
—
$
23
$
970
$
—
Preferred unit distributions
paid-in-kind
3,750
—
—
3,750
—
Natural Resource Partners
L.P.
Financial Tables
(Unaudited)
Consolidated Balance
Sheets
December 31,
(In thousands, except unit
data)
2020
2019
ASSETS
Current assets
Cash and cash equivalents
$
99,790
$
98,265
Accounts receivable, net
12,322
30,869
Other current assets, net
5,080
1,244
Current assets of discontinued
operations
—
1,706
Total current assets
$
117,192
$
132,084
Land
24,008
24,008
Mineral rights, net
460,373
605,096
Intangible assets, net
17,459
17,687
Equity in unconsolidated investment
262,514
263,080
Long-term contract receivable, net
33,264
36,963
Other long-term assets, net
7,067
6,989
Total assets
$
921,877
$
1,085,907
LIABILITIES AND CAPITAL
Current liabilities
Accounts payable
$
1,385
$
1,179
Accrued liabilities
7,733
8,764
Accrued interest
1,714
2,316
Current portion of deferred revenue
11,485
4,608
Current portion of long-term debt, net
39,055
45,776
Current liabilities of discontinued
operations
—
65
Total current liabilities
$
61,372
$
62,708
Deferred revenue
50,069
47,213
Long-term debt, net
432,444
470,422
Other non-current liabilities
5,131
4,949
Total liabilities
$
549,016
$
585,292
Commitments and contingencies
Class A Convertible Preferred Units
(253,750 and 250,000 units issued and outstanding at December 31,
2020 and 2019, respectively, at $1,000 par value per unit;
liquidation preference of $1,700 per unit and $1,500 per unit at
December 31, 2020 and 2019, respectively)
$
168,337
$
164,587
Partners’ capital:
Common unitholders’ interest (12,261,199
units issued and outstanding at December 31, 2020 and 2019)
$
136,927
$
271,471
General partner’s interest
459
3,270
Warrant holders' interest
66,816
66,816
Accumulated other comprehensive income
(loss)
322
(2,594)
Total partners’ capital
$
204,524
$
338,963
Non-controlling interest
—
(2,935)
Total capital
$
204,524
$
336,028
Total liabilities and capital
$
921,877
$
1,085,907
Natural Resource Partners
L.P.
Financial Tables
(Unaudited)
Consolidated Statements of
Partners' Capital
Common Unitholders
General Partner
Warrant Holders
Accumulated Other
Comprehensive Income (Loss)
Partners' Capital Excluding
Non-Controlling Interest
Non-Controlling
Interest
Total Capital
(In thousands)
Units
Amounts
Balance at December 31, 2018
12,249
$
355,113
$
5,014
$
66,816
$
(3,462)
$
423,481
$
(2,935)
$
420,546
Net loss (1)
—
(23,969)
(489)
—
—
(24,458)
—
(24,458)
Distributions to common unitholders and
general partner
—
(32,487)
(663)
—
—
(33,150)
—
(33,150)
Distributions to preferred unitholders
—
(29,400)
(600)
—
—
(30,000)
—
(30,000)
Issuance of unit-based awards
12
486
—
—
—
486
—
486
Unit-based awards amortization and
vesting
—
1,804
—
—
—
1,804
—
1,804
Comprehensive income (loss) from
unconsolidated investment and other
—
(76)
8
—
868
800
—
800
Balance at December 31, 2019
12,261
$
271,471
$
3,270
$
66,816
$
(2,594)
$
338,963
$
(2,935)
$
336,028
Cumulative effect of adoption of
accounting standard
—
(3,833)
(78)
—
—
(3,911)
—
(3,911)
Net loss (2)
—
(83,123)
(1,696)
—
—
(84,819)
—
(84,819)
Distributions to common unitholders and
general partner
—
(16,552)
(338)
—
—
(16,890)
—
(16,890)
Distributions to preferred unitholders
—
(29,511)
(602)
—
—
(30,113)
—
(30,113)
Acquisition of non-controlling interest in
BRP
—
(4,747)
(97)
—
—
(4,844)
2,935
(1,909)
Issuance of unit-based awards
—
—
—
—
—
—
—
—
Unit-based awards amortization and
vesting
—
3,222
—
—
—
3,222
—
3,222
Comprehensive income from unconsolidated
investment and other
—
—
—
—
2,916
2,916
—
2,916
Balance at December 31, 2020
12,261
$
136,927
$
459
$
66,816
$
322
$
204,524
$
—
$
204,524
____________________
(1)
Net loss includes $30.0 million of income
attributable to preferred unitholders that accumulated during the
period, of which $29.4 million is allocated to the common
unitholders and $0.6 million is allocated to the general
partner.
(2)
Net loss includes $30.2 million of income
attributable to preferred unitholders that accumulated during the
period, of which $29.6 million is allocated to the common
unitholders and $0.6 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
December 31, 2020 and 2019 and September 30, 2020:
Operating Segments
Coal Royalty and
Other
Corporate and
Financing
(In
thousands)
Soda Ash
Total
For the Three Months Ended December 31,
2020
Revenues
$
33,521
$
5,528
$
—
$
39,049
Gain on asset sales and disposals
116
—
—
116
Total revenues and other income
$
33,637
$
5,528
$
—
$
39,165
Asset impairments
$
2,668
$
—
$
—
$
2,668
Net income (loss) from continuing
operations
$
22,382
$
5,484
$
(13,179)
$
14,687
Adjusted EBITDA (1)
$
28,086
$
(44)
$
(3,125)
$
24,917
Cash flow provided by (used in) continuing
operations:
Operating activities
$
33,655
$
(54)
$
(20,446)
$
13,155
Investing activities
$
776
$
—
$
—
$
776
Financing activities
$
—
$
—
$
(29,714)
$
(29,714)
Distributable cash flow (1) (2)
$
34,431
$
(54)
$
(20,446)
$
13,932
Free cash flow (1)
$
34,315
$
(54)
$
(20,446)
$
13,815
For the Three Months Ended December 31,
2019
Revenues
$
41,571
$
10,256
$
—
$
51,827
Loss on asset sales and disposals
(111)
—
—
(111)
Total revenues and other income
$
41,460
$
10,256
$
—
$
51,716
Asset impairments
$
147,730
$
—
$
—
$
147,730
Net income (loss) from continuing
operations
$
(115,355)
$
10,230
$
(14,323)
$
(119,448)
Adjusted EBITDA (1)
$
35,561
$
6,344
$
(3,931)
$
37,974
Cash flow provided by (used in) continuing
operations:
Operating activities
$
39,042
$
6,344
$
(25,992)
$
19,394
Investing activities
$
259
$
—
$
—
$
259
Financing activities
$
—
$
—
$
(33,551)
$
(33,551)
Distributable cash flow (1) (2)
$
39,323
$
6,344
$
(25,992)
$
19,602
Free cash flow (1)
$
39,412
$
6,344
$
(25,992)
$
19,764
For the Three Months Ended September 30,
2020
Revenues
$
27,944
$
1,986
$
—
$
29,930
Gain on asset sales and disposals
—
—
—
—
Total revenues and other income
$
27,944
$
1,986
$
—
$
29,930
Asset impairments
$
934
$
—
$
—
$
934
Net income (loss) from continuing
operations
$
19,173
$
1,890
$
(13,847)
$
7,216
Adjusted EBITDA (1)
$
22,259
$
(96)
$
(3,634)
$
18,529
Cash flow provided by (used in) continuing
operations:
Operating activities
$
28,573
$
(75)
$
(4,175)
$
24,323
Investing activities
$
332
$
—
$
—
$
332
Financing activities
$
—
$
—
$
(19,910)
$
(19,910)
Distributable cash flow (1)
$
28,905
$
(75)
$
(4,175)
$
24,655
Free cash flow (1)
$
28,905
$
(75)
$
(4,175)
$
24,655
____________________
(1)
See "Non-GAAP Financial Measures" and
reconciliation tables at the end of this release.
(2)
Includes net proceeds from the sale of the
construction aggregates business which are classified as investing
cash flow from discontinued operations.
Natural Resource Partners
L.P.
Financial Tables
(Unaudited)
The following tables present
NRP's unaudited business results by segment for the years ended
December 31, 2020 and 2019:
Operating Business
Segments
Coal Royalty and Other
Corporate and
Financing
(In thousands)
Soda Ash
Total
For the Year Ended December 31, 2020
Revenues
$
129,011
$
10,728
$
—
$
139,739
Gain on asset sales and disposals
581
—
—
581
Total revenues and other income
$
129,592
$
10,728
$
—
$
140,320
Asset impairments
$
135,885
$
—
$
—
$
135,885
Net income (loss) from continuing
operations
$
(40,180)
$
10,543
$
(55,182)
$
(84,819)
Adjusted EBITDA (1)
$
104,982
$
14,025
$
(14,293)
$
104,714
Cash flow provided by (used in) continuing
operations:
Operating activities
$
124,737
$
14,037
$
(51,206)
$
87,568
Investing activities
$
1,745
$
—
$
—
$
1,745
Financing activities
$
—
$
—
$
(87,788)
$
(87,788)
Distributable cash flow (1) (2)
$
127,482
$
14,037
$
(51,206)
$
90,248
Free cash flow (1)
$
125,859
$
14,037
$
(51,206)
$
88,690
For the Year Ended December 31, 2019
Revenues
$
210,348
$
47,089
$
—
$
257,437
Gain on asset sales and disposals
6,498
—
—
6,498
Total revenues and other income
$
216,846
$
47,089
$
—
$
263,935
Asset impairments
$
148,214
$
—
$
—
$
148,214
Net income (loss) from continuing
operations
$
21,211
$
46,840
$
(93,465)
$
(25,414)
Adjusted EBITDA (1)
$
184,357
$
31,601
$
(16,730)
$
199,228
Cash flow provided by (used in) continuing
operations:
Operating activities
$
178,863
$
31,601
$
(73,145)
$
137,319
Investing activities
$
8,221
$
—
$
—
$
8,221
Financing activities
$
—
$
—
$
(253,305)
$
(253,305)
Distributable cash flow (1) (2)
$
187,106
$
31,601
$
(73,145)
$
144,933
Free cash flow (1)
$
180,584
$
31,601
$
(73,145)
$
139,040
____________________
(1)
See "Non-GAAP Financial Measures" and
reconciliation tables at the end of this release.
(2)
Includes net proceeds from the sale of the
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
For the Three Months
Ended
For the Year Ended
December 31,
September 30,
December 31,
(In thousands, except per ton
data)
2020
2019
2020
2020
2019
Coal sales volumes (tons)
Appalachia
Northern (1)
131
686
102
647
3,460
Central
2,468
2,908
2,247
10,111
13,377
Southern
69
498
172
889
1,670
Total Appalachia
2,668
4,092
2,521
11,647
18,507
Illinois Basin
1,540
555
758
3,381
2,201
Northern Powder River Basin
506
1,057
365
1,738
3,036
Total coal sales volumes
4,714
5,704
3,644
16,766
23,744
Coal royalty revenue per ton
Appalachia
Northern (1)
$
2.92
$
0.88
$
3.06
$
2.36
$
1.96
Central
3.84
4.58
3.83
4.17
5.53
Southern
5.28
5.96
4.78
4.75
6.69
Illinois Basin
2.21
4.53
1.63
2.36
4.66
Northern Powder River Basin
3.11
2.33
3.46
3.50
2.90
Combined average coal royalty revenue per
ton
3.23
3.84
3.36
3.70
4.67
Coal royalty revenues
Appalachia
Northern (1)
$
383
$
602
$
312
$
1,526
$
6,775
Central
9,481
13,332
8,602
42,207
73,960
Southern
364
2,965
823
4,221
11,169
Total Appalachia
10,228
16,899
9,737
47,954
91,904
Illinois Basin
3,403
2,516
1,234
7,973
10,255
Northern Powder River Basin
1,576
2,462
1,262
6,086
8,809
Unadjusted coal royalty revenues
15,207
21,877
12,233
62,013
110,968
Coal royalty adjustment for minimum leases
(2)
(3,898)
174
(1,623)
(10,145)
(1,356)
Total coal royalty revenues
$
11,309
$
22,051
$
10,610
$
51,868
$
109,612
Other revenues
Production lease minimum revenue (2)
$
8,195
$
2,737
$
4,267
$
21,749
$
24,068
Minimum lease straight-line revenues
(2)
4,447
3,758
3,553
16,796
14,910
Property tax revenues
1,530
1,871
1,896
5,786
6,287
Wheelage revenues
1,557
845
1,680
7,025
5,880
Coal overriding royalty revenues
1,658
3,333
1,314
4,977
13,496
Lease amendment revenues
859
1,271
858
3,450
7,991
Aggregates royalty revenues
649
610
221
1,717
4,265
Oil and gas royalty revenues
893
456
1,078
5,816
3,031
Other revenues
230
100
263
982
1,529
Total other revenues
$
20,018
$
14,981
$
15,130
$
68,298
$
81,457
Coal royalty and other
$
31,327
$
37,032
$
25,740
$
120,166
$
191,069
Transportation and processing services
revenues
2,194
4,539
2,204
8,845
19,279
Gain (loss) on asset sales and
disposals
116
(111)
—
581
6,498
Total Coal Royalty and Other segment
revenues and other income
$
33,637
$
41,460
$
27,944
$
129,592
$
216,846
___________________
(1)
Northern Appalachia includes NRP's Hibbs
Run property that has significant sales volumes, but a low fixed
rate per ton.
(2)
Effective January 1, 2020, certain
revenues previously classified as coal royalty revenues are
classified as production lease minimum revenues or minimum lease
straight-line revenues due to contract modifications with Foresight
Energy Resources LLC ("Foresight") that fixed consideration paid to
us over a two-year period.
Natural Resource Partners
L.P.
Financial Tables
(Unaudited)
Adjusted EBITDA
Coal Royalty and Other
Corporate and
Financing
(In thousands)
Soda Ash
Total
For the Three Months Ended December 31,
2020
Net income (loss) from continuing
operations
22,382
5,484
(13,179)
$
14,687
Less: equity earnings from unconsolidated
investment
—
(5,528)
—
(5,528)
Add: total distributions from
unconsolidated investment
—
—
—
—
Add: interest expense, net
23
—
10,054
10,077
Add: depreciation, depletion and
amortization
3,013
—
—
3,013
Add: asset impairments
2,668
—
—
2,668
Adjusted EBITDA
$
28,086
$
(44)
$
(3,125)
$
24,917
For the Three Months Ended December 31,
2019
Net income (loss) from continuing
operations
$
(115,355)
$
10,230
$
(14,323)
$
(119,448)
Less: equity earnings from unconsolidated
investment
—
(10,256)
—
(10,256)
Add: total distributions from
unconsolidated investment
—
6,370
—
6,370
Add: interest expense, net
—
—
10,392
10,392
Add: depreciation, depletion and
amortization
3,186
—
—
3,186
Add: asset impairments
147,730
—
—
147,730
Adjusted EBITDA
$
35,561
$
6,344
$
(3,931)
$
37,974
For the Three Months Ended September
30, 2020
Net income (loss) from continuing
operations
$
19,173
$
1,890
(13,847)
$
7,216
Less: equity earnings from unconsolidated
investment
—
(1,986)
—
(1,986)
Add: total distributions from
unconsolidated investment
—
—
—
—
Add: interest expense, net
41
—
10,213
10,254
Add: depreciation, depletion and
amortization
2,111
—
—
2,111
Add: asset impairments
934
—
—
934
Adjusted EBITDA
$
22,259
$
(96)
$
(3,634)
$
18,529
Natural Resource Partners
L.P.
Financial Tables
(Unaudited)
Adjusted EBITDA
Coal Royalty and Other
Corporate and
Financing
(In thousands)
Soda Ash
Total
For the Year Ended December 31,
2020
Net income (loss) from continuing
operations
$
(40,180)
$
10,543
$
(55,182)
$
(84,819)
Less: equity earnings from unconsolidated
investment
—
(10,728)
—
(10,728)
Add: total distributions from
unconsolidated investment
—
14,210
—
14,210
Add: interest expense, net
79
—
40,889
40,968
Add: loss on extinguishment of debt
—
—
—
—
Add: depreciation, depletion and
amortization
9,198
—
—
9,198
Add: asset impairments
135,885
—
—
135,885
Adjusted EBITDA
$
104,982
$
14,025
$
(14,293)
$
104,714
For the Year Ended December 31,
2019
Net income (loss) from continuing
operations
$
21,211
$
46,840
$
(93,465)
$
(25,414)
Less: equity earnings from unconsolidated
investment
—
(47,089)
—
(47,089)
Add: total distributions from
unconsolidated investment
—
31,850
—
31,850
Add: interest expense, net
—
—
47,453
47,453
Add: loss on extinguishment of debt
—
—
29,282
29,282
Add: depreciation, depletion and
amortization
14,932
—
—
14,932
Add: asset impairments
148,214
—
—
148,214
Adjusted EBITDA
$
184,357
$
31,601
$
(16,730)
$
199,228
Natural Resource Partners
L.P.
Financial Tables
(Unaudited)
Distributable Cash Flow and
Free Cash Flow
Coal Royalty and Other
Corporate and
Financing
(In thousands)
Soda Ash
Total
For the Three Months Ended December 31,
2020
Net cash provided by (used in) operating
activities of continuing operations
$
33,655
$
(54)
$
(20,446)
13,155
Add: proceeds from asset sales and
disposals
116
—
—
116
Add: proceeds from sale of discontinued
operations
—
—
—
1
Add: return of long-term contract
receivable
660
—
—
660
Distributable cash flow
$
34,431
$
(54)
$
(20,446)
$
13,932
Less: proceeds from asset sales and
disposals
(116)
—
—
(116)
Less: proceeds from sale of discontinued
operations
—
—
—
(1)
Less: acquisition costs
—
—
—
—
Free cash flow
$
34,315
$
(54)
$
(20,446)
$
13,815
For the Three Months Ended December 31,
2019
Net cash provided by (used in) operating
activities of continuing operations
$
39,042
$
6,344
$
(25,992)
$
19,394
Add: proceeds from asset sales and
disposals
(111)
—
—
(111)
Add: proceeds from sale of discontinued
operations
—
—
—
(73)
Add: return of long-term contract
receivable
392
—
—
392
Distributable cash flow
$
39,323
$
6,344
$
(25,992)
$
19,602
Less: proceeds from asset sales and
disposals
111
—
—
111
Less: proceeds from sale of discontinued
operations
—
—
—
73
Less: acquisition costs
(22)
—
—
(22)
Free cash flow
$
39,412
$
6,344
$
(25,992)
$
19,764
For the Three Months Ended September
30, 2020
Net cash provided by (used in) operating
activities of continuing operations
$
28,573
$
(75)
$
(4,175)
$
24,323
Add: proceeds from asset sales and
disposals
—
—
—
—
Add: proceeds from sale of discontinued
operations
—
—
—
—
Add: return of long-term contract
receivable
332
—
—
332
Distributable cash flow
$
28,905
$
(75)
$
(4,175)
$
24,655
Less: proceeds from asset sales and
disposals
—
—
—
—
Less: proceeds from sale of discontinued
operations
—
—
—
—
Less: acquisition costs
—
—
—
—
Free cash flow
$
28,905
$
(75)
$
(4,175)
$
24,655
Natural Resource Partners
L.P.
Financial Tables
(Unaudited)
Distributable Cash Flow and
Free Cash Flow
Coal Royalty and Other
Corporate and
Financing
(In thousands)
Soda Ash
Total
For the Year Ended December 31,
2020
Net cash provided by (used in) operating
activities of continuing operations
$
124,737
$
14,037
$
(51,206)
$
87,568
Add: proceeds from asset sales and
disposals
623
—
—
623
Add: proceeds from sale of discontinued
operations
—
—
—
(65)
Add: return of long-term contract
receivable
2,122
—
—
2,122
Distributable cash flow
$
127,482
$
14,037
$
(51,206)
$
90,248
Less: proceeds from asset sales and
disposals
(623)
—
—
(623)
Less: proceeds from sale of discontinued
operations
—
—
—
65
Less: acquisition costs
(1,000)
—
—
(1,000)
Free cash flow
$
125,859
$
14,037
$
(51,206)
$
88,690
For the Year Ended December 31,
2019
Net cash provided by (used in) operating
activities of continuing operations
$
178,863
$
31,601
$
(73,145)
$
137,319
Add: proceeds from asset sales and
disposals
6,500
—
—
6,500
Add: proceeds from sale of discontinued
operations
—
—
—
(629)
Add: return of long-term contract
receivable
1,743
—
—
1,743
Distributable cash flow
$
187,106
$
31,601
$
(73,145)
$
144,933
Less: proceeds from asset sales and
disposals
(6,500)
—
—
(6,500)
Less: proceeds from sale of discontinued
operations
—
—
—
629
Less: acquisition costs
(22)
—
—
(22)
Free cash flow
$
180,584
$
31,601
$
(73,145)
$
139,040
Cash Flow Cushion
For the Year Ended December
31,
(In thousands)
2020
2019
Free cash flow
$
88,690
$
139,040
Less: mandatory Opco debt repayments
(46,176)
(68,128)
Less: preferred unit distributions and
redemption of PIK units
(26,363)
(30,000)
Less: common unit distributions
(16,890)
(33,150)
Cash flow cushion
$
(739)
$
7,762
Leverage Ratio
(In thousands)
For the Year Ended December
31, 2020
Adjusted EBITDA
$
104,714
Debt—at December 31, 2020
$
477,880
Leverage Ratio (1)
4.6x
___________________
(1)
Leverage Ratio is calculated as the
outstanding principal of NRP's debt as of December 31, 2020 divided
by the last twelve months' Adjusted EBITDA. Note that Adjusted
EBITDA under the indenture governing NRP's 2025 parent company
notes may be different than the amount shown above. However, NRP's
last twelve months Leverage ratio as of December 31, 2020, was 4.6x
as calculated under the indenture governing NRP's 2025 parent
company notes.
Natural Resource Partners
L.P.
Financial Tables
(Unaudited)
Return on Capital Employed
("ROCE")
Coal Royalty and Other
Corporate and
Financing
(In thousands)
Soda Ash
Total
LTM Ended December 31, 2020
Net income (loss) from continuing
operations
$
(40,180)
$
10,543
$
(55,182)
$
(84,819)
Financing costs
79
—
41,275
41,354
Return
$
(40,101)
$
10,543
$
(13,907)
$
(43,465)
As of December 31, 2019
Total assets of continuing operations
$
817,768
$
263,080
$
3,353
$
1,084,201
Less: total current liabilities of
continuing operations excluding current debt
(11,542)
—
(5,325)
(16,867)
Less: total long-term liabilities of
continuing operations excluding long-term debt
(51,700)
—
(462)
(52,162)
Capital employed excluding discontinued
operations
$
754,526
$
263,080
$
(2,434)
$
1,015,172
Total partners' capital (1)
$
757,461
$
263,080
$
(683,219)
$
338,963
Less: non-controlling interest
(2,935)
—
—
(2,935)
Less: partners' capital from discontinued
operations
—
—
—
(1,641)
Total partners' capital excluding
discontinued operations
$
754,526
$
263,080
$
(683,219)
$
334,387
Class A convertible preferred units
—
—
164,587
164,587
Debt
—
—
516,198
516,198
Capital employed excluding discontinued
operations
$
754,526
$
263,080
$
(2,434)
$
1,015,172
ROCE excluding discontinued operations
(5.3)%
4.0%
N/A
(4.3)%
Excluding asset impairments:
Return
$
(40,101)
$
10,543
$
(13,907)
$
(43,465)
Add: asset impairments
135,885
—
—
135,885
Return excluding asset impairments
$
95,784
$
10,543
$
(13,907)
$
92,420
ROCE excluding discontinued operations and
asset impairments
12.7%
4.0%
N/A
9.1%
___________________
(1)
Total partners' capital includes $1.6
million from discontinued operations.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210315005122/en/
Tiffany Sammis 713-751-7515 tsammis@nrplp.com
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