Natural Resource Partners L.P. (NYSE:NRP) today reported
first quarter 2021 results as follows:
For the Three Months
Ended
Last Twelve Months
March 31,
March 31,
(In thousands) (Unaudited)
2021
2020
2021
Net income (loss)
$
8,381
$
18,779
$
(95,217
)
Asset impairments
4,043
—
139,928
Net income excluding asset impairments
(1)
$
12,424
$
18,779
$
44,711
Adjusted EBITDA (1)
29,436
31,932
102,218
Cash flow provided by (used in) continuing
operations:
Operating activities
23,200
30,155
80,613
Investing activities
600
272
2,073
Financing activities
(26,823
)
(28,186
)
(86,425
)
Distributable cash flow (1) (2)
23,800
30,361
83,687
Free cash flow (1)
23,741
30,427
82,004
Cash flow cushion (last twelve months)
(1)
(3,731
)
____________________
(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.
"Growing demand for steel, glass and electricity continues to
drive the rebound in our business segments from the negative impact
of the COVID-19 pandemic. The Partnership’s demonstrated ability to
generate free cash flow, reduce debt and maintain strong liquidity
throughout the crisis has been noteworthy, and we expect these
trends to continue," stated Craig Nunez, NRP's President and Chief
Operating Officer.
NRP's liquidity was $196.8 million at March 31, 2021, consisting
of $96.8 million of cash and $100.0 million of borrowing capacity
available under its revolving credit facility.
NRP announced today that the Board of Directors of its general
partner declared a first quarter 2021 cash distribution of $0.45
per common unit of NRP to be paid on May 24, 2021 to unitholders of
record on May 17, 2021. In addition, the Board declared a $7.7
million distribution on the preferred units, which will be paid
one-half in cash and one-half in kind through the issuance of
additional preferred units. The preferred unit distribution
includes interest on previously paid-in-kind units and will be paid
one-half in cash and one-half in kind through the issuance of
additional preferred units.
Segment Performance
Coal Royalty and Other
In the first quarter of 2021 net income decreased $6.3 million
as compared to the prior year period primarily due to a $4.0
million non-cash asset impairment in the first quarter of 2021
related to an idled thermal coal property, as well as a $3.1
million increase in depletion expense due to increased coal
production at certain properties. Free cash flow was $4.3 million
lower in the first quarter of 2021 as compared to the prior year
period primarily as a result of lease amendment fee payments
received in the first quarter of 2020. Approximately 50% of coal
royalty revenues and approximately 40% of coal royalty sales
volumes were derived from metallurgical coal in the first quarter
of 2021.
Metallurgical coal markets remain challenged by the
uncertainties around the COVID-19 pandemic, however prices have
rebounded from the lows seen in the second quarter of 2020 and the
outlook continues to strengthen. Domestic and export thermal coal
markets continue to stabilize, but still face ongoing negative
effects of the COVID-19 pandemic and the long-term challenges of
lower utility demand, low natural gas prices, and the secular shift
to renewable energy. However, NRP does not have significant
sensitivity to thermal coal price movements this year since the
substantial majority of NRP's thermal cash flows are fixed pursuant
to a contract with Foresight Energy that went into effect as they
emerged from bankruptcy last year.
Soda Ash
Net income in the first quarter of 2021 was lower by $4.3
million as compared to the prior year period primarily as a result
of lower sales prices due to demand disruptions caused by the
COVID-19 pandemic. NRP received $3.9 million in cash distributions
from Ciner Wyoming in the first quarter of 2021 as compared to $7.1
million in cash distributions in the prior year period. As
previously stated, in August of 2020, Ciner Wyoming decided to
suspend its quarterly distributions in an effort to achieve greater
financial and liquidity flexibility as a result of COVID-19. While
NRP did receive a special $3.9 million distribution from Ciner
Wyoming during the quarter, NRP does not expect Ciner Wyoming to
resume regular cash distributions until they have greater
visibility and confidence in the sustainability of the continuing
improvement in global soda ash demand. 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.
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 COVID-19.
Corporate and Financing
Corporate and financing costs in the first quarter of 2021 were
relatively flat as compared to the prior year period as increases
in certain costs, such as insurance, were offset by a reduction in
controllable costs as a result of NRP's cost saving initiatives.
Free cash flow improved $0.8 million in the first quarter of 2021
as compared to the prior year period primarily due to lower cash
paid for interest as a result of less debt outstanding in 2021.
As noted earlier, NRP declared a first quarter 2021 preferred
unit distribution of $7.7 million which will be 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 March 31,
2021, NRP's leverage ratio was 4.5x. NRP expects its leverage ratio
to continue to rise through the second quarter of 2021 and then
begin a sustained long-term decline as NRP continues to pay down
debt. Under the terms of the partnership agreement, if NRP’s
consolidated leverage ratio remains above 3.75x into 2022 and NRP
remains unable to redeem any outstanding paid-in-kind preferred
units, NRP would be required to temporarily suspend distributions
on its common units until the leverage ratio drops below 3.75x and
the outstanding paid-in-kind preferred units are redeemed. 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.
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
https://www.incommglobalevents.com/registration/client/7437/natural-resource-partners-lp-first-quarter-2021-earnings-call/.
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.
Withholding Information for Foreign Investors
This release is intended to be a qualified notice under Treasury
Regulation Section 1.1446-4(b). Brokers and nominees should treat
one hundred percent (100.0%) of NRP's distributions to foreign
investors as being attributable to income that is effectively
connected with a United States trade or business. Accordingly,
NRP's distributions to foreign investors are subject to federal
income tax withholding at the highest applicable rate.
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) 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, 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) 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
For the Three Months
Ended
March 31,
December 31,
(In thousands, except per unit
data)
2021
2020
2020
Revenues and other income
Coal royalty and other
$
32,927
$
31,433
$
31,327
Transportation and processing services
2,192
2,509
2,194
Equity in earnings of Ciner Wyoming
1,973
6,272
5,528
Gain on asset sales and disposals
59
—
116
Total revenues and other income
$
37,151
$
40,214
$
39,165
Operating expenses
Operating and maintenance expenses
$
5,552
$
5,202
$
5,595
Depreciation, depletion and
amortization
5,092
2,012
3,013
General and administrative expenses
4,110
3,913
3,125
Asset impairments
4,043
—
2,668
Total operating expenses
$
18,797
$
11,127
$
14,401
Income from operations
$
18,354
$
29,087
$
24,764
Interest expense, net
$
(9,973
)
$
(10,308
)
$
(10,077
)
Net income
$
8,381
$
18,779
$
14,687
Less: income attributable to preferred
unitholders
(7,727
)
(7,500
)
(7,612
)
Net income attributable to common
unitholders and the general partner
$
654
$
11,279
$
7,075
Net income attributable to common
unitholders
$
641
$
11,053
$
6,934
Net income attributable to the general
partner
13
226
141
Net income per common unit
Basic
$
0.05
$
0.90
$
0.57
Diluted
0.05
0.52
0.56
Net income
$
8,381
$
18,779
$
14,687
Comprehensive income (loss) from
unconsolidated investment and other
732
(1,023
)
152
Comprehensive income
$
9,113
$
17,756
14,839
Natural Resource Partners
L.P.
Financial Tables
(Unaudited)
Consolidated Statements of
Cash Flows
For the Three Months
Ended
March 31,
December 31,
(In thousands)
2021
2020
2020
Cash flows from operating activities
Net income
$
8,381
$
18,779
$
14,687
Adjustments to reconcile net income to net
cash provided by operating activities of continuing operations:
Depreciation, depletion and
amortization
5,092
2,012
3,013
Distributions from unconsolidated
investment
3,920
7,105
—
Equity earnings from unconsolidated
investment
(1,973
)
(6,272
)
(5,528
)
Gain on asset sales and disposals
(59
)
—
(116
)
Asset impairments
4,043
—
2,668
Bad debt expense
383
(190
)
86
Unit-based compensation expense
1,126
729
1,004
Amortization of debt issuance costs and
other
269
448
832
Change in operating assets and
liabilities:
Accounts receivable
(3,331
)
(5,073
)
4,859
Accounts payable
(10
)
93
14
Accrued liabilities
(3,034
)
(2,861
)
780
Accrued interest
7,133
7,060
(7,559
)
Deferred revenue
(146
)
8,265
(461
)
Other items, net
1,406
60
(1,124
)
Net cash provided by operating activities
of continuing operations
$
23,200
$
30,155
$
13,155
Net cash provided by operating activities
of discontinued operations
—
1,706
—
Net cash provided by operating
activities
$
23,200
$
31,861
$
13,155
Cash flows from investing activities
Proceeds from asset sales and
disposals
$
59
$
—
$
116
Return of long-term contract
receivable
541
272
660
Net cash provided by investing activities
of continuing operations
$
600
$
272
$
776
Net cash provided by (used in) investing
activities of discontinued operations
—
(66
)
1
Net cash provided by investing
activities
$
600
$
206
$
777
Cash flows from financing activities
Debt repayments
$
(16,696
)
$
(16,696
)
$
(20,335
)
Distributions to common unitholders and
general partner
(5,630
)
(5,630
)
(5,630
)
Distributions to preferred unitholders
(3,806
)
(7,500
)
(3,750
)
Contributions from discontinued
operations
—
1,640
1
Debt issuance costs and other
(691
)
—
—
Net cash used in financing activities of
continuing operations
$
(26,823
)
$
(28,186
)
$
(29,714
)
Net cash used in financing activities of
discontinued operations
—
(1,640
)
(1
)
Net cash used in financing activities
$
(26,823
)
$
(29,826
)
$
(29,715
)
Net increase (decrease) in cash and cash
equivalents
$
(3,023
)
$
2,241
$
(15,783
)
Cash and cash equivalents at beginning of
period
99,790
98,265
115,573
Cash and cash equivalents at end of
period
$
96,767
$
100,506
$
99,790
Supplemental cash flow information:
Cash paid for interest
$
2,320
$
3,039
$
17,118
Non-cash investing and financing
activities:
Plant, equipment, mineral rights and other
funded with accounts payable or accrued liabilities
$
992
$
—
$
—
Preferred unit distributions
paid-in-kind
3,806
—
3,750
Natural Resource Partners
L.P.
Financial Tables
Consolidated Balance
Sheets
March 31,
December 31,
(In thousands, except unit
data)
2021
2020
(Unaudited)
ASSETS
Current assets
Cash and cash equivalents
$
96,767
$
99,790
Accounts receivable, net
15,920
12,322
Other current assets, net
3,021
5,080
Total current assets
$
115,708
$
117,192
Land
24,008
24,008
Mineral rights, net
451,610
460,373
Intangible assets, net
17,131
17,459
Equity in unconsolidated investment
261,299
262,514
Long-term contract receivable, net
32,726
33,264
Other long-term assets, net
6,678
7,067
Total assets
$
909,160
$
921,877
LIABILITIES AND CAPITAL
Current liabilities
Accounts payable
$
1,375
$
1,385
Accrued liabilities
4,853
7,733
Accrued interest
8,847
1,714
Current portion of deferred revenue
10,555
11,485
Current portion of long-term debt, net
39,042
39,055
Total current liabilities
$
64,672
$
61,372
Deferred revenue
50,853
50,069
Long-term debt, net
416,121
432,444
Other non-current liabilities
4,730
5,131
Total liabilities
$
536,376
$
549,016
Commitments and contingencies
Class A Convertible Preferred Units
(257,556 and 253,750 units issued and outstanding at March 31, 2021
and December 31, 2020, respectively, at $1,000 par value per unit;
liquidation preference of $1,850 per unit at March 31, 2021 and
$1,700 per unit at December 31, 2020)
$
172,143
$
168,337
Partners’ capital:
Common unitholders’ interest (12,351,306
and 12,261,199 units issued and outstanding at March 31, 2021 and
December 31, 2020, respectively)
$
132,377
$
136,927
General partner’s interest
394
459
Warrant holders' interest
66,816
66,816
Accumulated other comprehensive income
1,054
322
Total partners’ capital
$
200,641
$
204,524
Total liabilities and capital
$
909,160
$
921,877
Natural Resource Partners
L.P.
Financial Tables
(Unaudited)
Consolidated Statements of
Partners' Capital
Common Unitholders
General Partner
Warrant Holders
Accumulated Other
Comprehensive Income
Partners' Capital Excluding
Non- Controlling Interest
Non- Controlling
Interest
Total Capital
(In thousands)
Units
Amounts
Balance at December 31, 2020
12,261
$
136,927
$
459
$
66,816
$
322
$
204,524
$
—
$
204,524
Net loss (1)
—
8,213
168
—
—
8,381
—
8,381
Distributions to common unitholders and
the general partner
—
(5,517
)
(113
)
—
—
(5,630
)
—
(5,630
)
Distributions to preferred unitholders
—
(7,461
)
(152
)
—
—
(7,613
)
—
(7,613
)
Issuance of unit-based awards
90
—
—
—
—
—
—
—
Unit-based awards amortization and
vesting, net
—
215
—
—
—
215
—
215
Capital contribution
—
—
32
—
—
32
—
32
Comprehensive income from unconsolidated
investment and other
—
—
—
—
732
732
—
732
Balance at March 31, 2021
12,351
$
132,377
$
394
$
66,816
$
1,054
$
200,641
$
—
$
200,641
____________________
(1)
Net income includes $7.727
million of income attributable to preferred unitholders that
accumulated during the period, of which $7.572 million is allocated
to the common unitholders and $0.155 million is allocated to the
general partner.
Common Unitholders
General Partner
Warrant Holders
Accumulated Other
Comprehensive Loss
Partners' Capital Excluding
Non- Controlling Interest
Non- Controlling
Interest
Total Capital
(In thousands)
Units
Amounts
Balance at December 31, 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 income (1)
—
18,403
376
—
—
18,779
—
18,779
Distributions to common unitholders and
the general partner
—
(5,517
)
(113
)
—
—
(5,630
)
—
(5,630
)
Distributions to preferred unitholders
—
(7,350
)
(150
)
—
—
(7,500
)
—
(7,500
)
Unit-based awards amortization and
vesting
—
673
—
—
—
673
—
673
Comprehensive loss from unconsolidated
investment and other
—
—
—
—
(1,023
)
(1,023
)
—
(1,023
)
Balance at March 31, 2020
12,261
$
273,847
$
3,305
$
66,816
$
(3,617
)
$
340,351
$
(2,935
)
$
337,416
____________________
(1)
Net income includes $7.5 million
of income attributable to preferred unitholders that accumulated
during the period, of which $7.35 million is allocated to the
common unitholders and $0.15 million is allocated to the general
partner.
Natural Resource Partners
L.P.
Financial Tables
(Unaudited)
The following tables present
NRP's unaudited business results by segment for the three months
ended March 31, 2021 and 2020 and December 31, 2020:
Operating Business
Segments
Coal Royalty and Other
Corporate and
Financing
(In thousands)
Soda Ash
Total
For the Three Months Ended March 31,
2021
Revenues
$
35,119
$
1,973
$
—
$
37,092
Gain on asset sales and disposals
59
—
—
59
Total revenues and other income
$
35,178
$
1,973
$
—
$
37,151
Asset impairments
$
4,043
$
—
$
—
$
4,043
Net income (loss)
$
20,488
$
1,953
$
(14,060
)
$
8,381
Adjusted EBITDA (1)
$
29,646
$
3,900
$
(4,110
)
$
29,436
Cash flow provided by (used in) continuing
operations:
Operating activities
$
25,962
$
3,888
$
(6,650
)
$
23,200
Investing activities
$
600
$
—
$
—
$
600
Financing activities
$
(132
)
$
—
$
(26,691
)
$
(26,823
)
Distributable cash flow (1) (2)
$
26,562
$
3,888
$
(6,650
)
$
23,800
Free cash flow (1)
$
26,503
$
3,888
$
(6,650
)
$
23,741
For the Three Months Ended March 31,
2020
Revenues
$
33,942
$
6,272
$
—
$
40,214
Gain on asset sales and disposals
—
—
—
—
Total revenues and other income
$
33,942
$
6,272
$
—
$
40,214
Asset impairments
$
—
$
—
$
—
$
—
Net income (loss)
$
26,744
$
6,256
$
(14,221
)
$
18,779
Adjusted EBITDA (1)
$
28,756
$
7,089
$
(3,913
)
$
31,932
Cash flow provided by (used in) continuing
operations:
Operating activities
$
30,556
$
7,089
$
(7,490
)
$
30,155
Investing activities
$
272
$
—
$
—
$
272
Financing activities
$
—
$
—
$
(28,186
)
$
(28,186
)
Distributable cash flow (1) (2)
$
30,828
$
7,089
$
(7,490
)
$
30,361
Free cash flow (1)
$
30,828
$
7,089
$
(7,490
)
$
30,427
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)
$
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
____________________
(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
March 31,
December 31,
(In thousands, except per ton
data)
2021
2020
2020
Coal sales volumes (tons)
Appalachia
Northern (1)
120
327
131
Central
2,650
2,933
2,468
Southern
100
222
69
Total Appalachia
2,870
3,482
2,668
Illinois Basin
2,658
505
1,540
Northern Powder River Basin
1,059
527
506
Total coal sales volumes
6,587
4,514
4,714
Coal royalty revenue per ton
Appalachia
Northern (1)
$
3.64
$
1.81
$
2.92
Central
4.22
4.83
3.84
Southern
5.28
4.16
5.28
Illinois Basin
2.06
4.35
2.21
Northern Powder River Basin
3.37
4.13
3.11
Combined average coal royalty revenue per
ton
3.22
4.44
3.23
Coal royalty revenues
Appalachia
Northern (1)
$
437
$
593
$
383
Central
11,195
14,173
9,481
Southern
528
923
364
Total Appalachia
12,160
15,689
10,228
Illinois Basin
5,483
2,199
3,403
Northern Powder River Basin
3,573
2,177
1,576
Unadjusted coal royalty revenues
21,216
20,065
$
15,207
Coal royalty adjustment for minimum leases
(2)
(5,851
)
(963
)
(3,898
)
Total coal royalty revenues
$
15,365
$
19,102
$
11,309
Other revenues
Production lease minimum revenues (2)
$
3,450
$
802
$
8,195
Minimum lease straight-line revenues
(2)
6,096
3,809
4,447
Property tax revenues
1,469
1,599
1,530
Wheelage revenues
1,781
2,204
1,557
Coal overriding royalty revenues
1,859
1,322
1,658
Lease amendment revenues
868
843
859
Aggregates royalty revenues
454
576
649
Oil and gas royalty revenues
1,366
1,103
893
Other revenues
219
73
230
Total other revenues
$
17,562
$
12,331
$
20,018
Coal royalty and other
$
32,927
$
31,433
$
31,327
Transportation and processing services
revenues
2,192
2,509
2,194
Gain on asset sales and disposals
59
—
116
Total Coal Royalty and Other segment
revenues and other income
$
35,178
$
33,942
$
33,637
____________________
(1)
Northern Appalachia includes
NRP's Hibbs Run property that has significant sales volumes, but a
low fixed rate per ton.
(2)
Beginning April 1, 2020 and
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 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 March 31,
2021
Net income (loss)
$
20,488
$
1,953
$
(14,060
)
$
8,381
Less: equity earnings from unconsolidated
investment
—
(1,973
)
—
(1,973
)
Add: total distributions from
unconsolidated investment
—
3,920
—
3,920
Add: interest expense, net
23
—
9,950
9,973
Add: depreciation, depletion and
amortization
5,092
—
—
5,092
Add: asset impairments
4,043
—
—
4,043
Adjusted EBITDA
$
29,646
$
3,900
$
(4,110
)
$
29,436
For the Three Months Ended March 31,
2020
Net income (loss)
$
26,744
$
6,256
$
(14,221
)
$
18,779
Less: equity earnings from unconsolidated
investment
—
(6,272
)
—
(6,272
)
Add: total distributions from
unconsolidated investment
—
7,105
—
7,105
Add: interest expense, net
—
—
10,308
10,308
Add: depreciation, depletion and
amortization
2,012
—
—
2,012
Add: asset impairments
—
—
—
—
Adjusted EBITDA
$
28,756
$
7,089
$
(3,913
)
$
31,932
For the Three Months Ended December 31,
2020
Net income (loss)
$
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
Natural Resource Partners
L.P.
Reconciliation of Non-GAAP
Measures
(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 March 31,
2021
Net cash provided by (used in) operating
activities of continuing operations
$
25,962
$
3,888
$
(6,650
)
$
23,200
Add: proceeds from asset sales and
disposals
59
—
—
59
Add: proceeds from sale of discontinued
operations
—
—
—
—
Add: return of long-term contract
receivable
541
—
—
541
Distributable cash flow
$
26,562
$
3,888
$
(6,650
)
$
23,800
Less: proceeds from asset sales and
disposals
(59
)
—
—
(59
)
Less: proceeds from sale of discontinued
operations
—
—
—
—
Free cash flow
$
26,503
$
3,888
$
(6,650
)
$
23,741
For the Three Months Ended March 31,
2020
Net cash provided by (used in) operating
activities of continuing operations
$
30,556
$
7,089
$
(7,490
)
$
30,155
Add: proceeds from asset sales and
disposals
—
—
—
—
Add: proceeds from sale of discontinued
operations
—
—
—
(66
)
Add: return of long-term contract
receivable
272
—
—
272
Distributable cash flow
$
30,828
$
7,089
$
(7,490
)
$
30,361
Less: proceeds from asset sales and
disposals
—
—
—
—
Less: proceeds from sale of discontinued
operations
—
—
—
66
Free cash flow
$
30,828
$
7,089
$
(7,490
)
$
30,427
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
receivables
660
—
—
660
Distributable cash flow
$
34,431
$
(54
)
$
(20,446
)
$
13,932
Less: proceeds from sale of assets
(116
)
—
—
(116
)
Less: proceeds from sale of discontinued
operations
—
—
—
(1
)
Free cash flow
$
34,315
$
(54
)
$
(20,446
)
$
13,815
Natural Resource Partners
L.P.
Reconciliation of Non-GAAP
Measures
(Unaudited)
LTM Free Cash Flow and Cash
Flow Cushion
For the Three Months
Ended
(In thousands)
June 30, 2020
September 30, 2020
December 31, 2020
March 31, 2021
Last 12 Months
Net cash provided by operating activities
of continuing operations
$
19,935
$
24,323
$
13,155
$
23,200
$
80,613
Add: proceeds from asset sales and
disposals
507
—
116
59
682
Add: proceeds from sale of discontinued
operations
—
—
1
—
1
Add: return of long-term contract
receivable
858
332
660
541
2,391
Distributable cash flow
$
21,300
$
24,655
$
13,932
$
23,800
$
83,687
Less: proceeds from asset sales and
disposals
(507
)
—
(116
)
(59
)
(682
)
Less: proceeds from sale of discontinued
operations
—
—
(1
)
—
(1
)
Less: acquisition costs
(1,000
)
—
—
—
(1,000
)
Free cash flow
$
19,793
$
24,655
$
13,815
$
23,741
$
82,004
Less: mandatory Opco debt repayments
(2,365
)
(6,780
)
(20,335
)
(16,696
)
(46,176
)
Less: preferred unit distributions
(7,613
)
(7,500
)
(3,750
)
(3,806
)
(22,669
)
Less: common unit distributions
—
(5,630
)
(5,630
)
(5,630
)
(16,890
)
Cash flow cushion
$
9,815
$
4,745
$
(15,900
)
$
(2,391
)
$
(3,731
)
Leverage Ratio
For the Three Months
Ended
(In
thousands)
June 30, 2020
September 30, 2020
December 31, 2020
March 31, 2021
Last 12 Months
Net income (loss)
$
(125,501
)
$
7,216
$
14,687
$
8,381
$
(95,217
)
Less: equity earnings from unconsolidated
investment
3,058
(1,986
)
(5,528
)
(1,973
)
(6,429
)
Add: total distributions from
unconsolidated investment
7,105
—
—
3,920
11,025
Add: interest expense, net
10,329
10,254
10,077
9,973
40,633
Add: depreciation, depletion and
amortization
2,062
2,111
3,013
5,092
12,278
Add: asset impairments
132,283
934
2,668
4,043
139,928
Adjusted EBITDA
$
29,336
$
18,529
$
24,917
$
29,436
$
102,218
Debt—at March 31, 2021
$
461,183
Leverage Ratio (1)
4.5
x
____________________
(1)
Leverage Ratio is calculated as
the outstanding principal of NRP's debt as of March 31, 2021
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 March 31,
2021, was 4.5x as calculated under the indenture governing NRP's
2025 parent company notes.
Natural Resource Partners
L.P.
Reconciliation of Non-GAAP
Measures
(Unaudited)
Return on Capital Employed
("ROCE")
Coal Royalty and Other
Corporate and
Financing
(In thousands)
Soda Ash
Total
LTM Ended March 31, 2021
Net income (loss)
$
(46,436
)
$
6,240
$
(55,021
)
$
(95,217
)
Financing costs
102
—
40,615
40,717
Return
$
(46,334
)
$
6,240
$
(14,406
)
$
(54,500
)
As of March 31, 2020
Total assets of continuing operations
$
817,463
$
261,224
$
4,735
$
1,083,422
Less: total current liabilities of
continuing operations excluding current debt
(11,935
)
—
(10,738
)
(22,673
)
Less: total long-term liabilities of
continuing operations excluding long-term debt
(58,460
)
—
(409
)
(58,869
)
Capital employed excluding discontinued
operations
$
747,068
$
261,224
$
(6,412
)
$
1,001,880
Partners' capital
$
750,003
$
261,224
$
(670,876
)
$
340,351
Less: non-controlling interest
(2,935
)
—
—
(2,935
)
Total partners' capital
$
747,068
$
261,224
$
(670,876
)
$
337,416
Class A convertible preferred units
—
—
164,587
164,587
Debt
—
—
499,877
499,877
Capital employed
$
747,068
$
261,224
$
(6,412
)
$
1,001,880
ROCE
(6.2
)%
2.4
%
N/A
(5.4
)%
Excluding asset impairments:
Return
$
(46,334
)
$
6,240
$
(14,406
)
$
(54,500
)
Add: asset impairments
139,928
—
—
139,928
Return excluding asset impairments
$
93,594
$
6,240
$
(14,406
)
$
85,428
ROCE excluding asset impairments
12.5
%
2.4
%
N/A
8.5
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210506005269/en/
Tiffany Sammis 713-751-7515 tsammis@nrplp.com
Natural Resource Partners (NYSE:NRP)
Historical Stock Chart
From Jul 2024 to Jul 2024
Natural Resource Partners (NYSE:NRP)
Historical Stock Chart
From Jul 2023 to Jul 2024