ST. LOUIS, Feb. 4, 2021 /PRNewswire/ -- Peabody (NYSE:
BTU) today announced its fourth quarter 2020 operating results,
including revenues of $737.2 million;
loss from continuing operations, net of income taxes of
$120.4 million, which included
$69.3 million of non-cash asset
impairments; net loss attributable to common stockholders of
$129.2 million; diluted loss per
share from continuing operations of $1.25; and Adjusted EBITDA1 of
$103.2 million.
"Whilst 2020 was a year unlike any other with COVID impacting
all facets of our business – from the customers we serve to the
communities in which we operate – the Peabody team worked hard to
position against these challenges and we look forward to driving
continued improvements in 2021," said Peabody President and CEO
Glenn Kellow. "We had a number
of accomplishments in 2020, including lowering costs per ton in
three out of four segments while responding to difficult demand
conditions, as well as creating a leaner corporate structure.
We also undertook a comprehensive refinancing transaction that
extended debt maturities, eliminated our net leverage ratio
covenant and preserved operating liquidity."
General Business Update
Throughout 2020, the COVID-19 pandemic severely impacted the
global economy, which in turn impacted Peabody's operations and
customers. Along with the pandemic came lower electricity
generation and steel production, depressed natural gas prices,
lower global energy prices and the disruption of certain markets
across the globe, creating significant financial challenges for
Peabody.
Against this backdrop, Peabody reached a comprehensive agreement
with its 2022 bondholders, revolving credit lenders and surety bond
providers to extend most of the company's near-term debt maturities
to December 2024 and stabilize
collateral requirements for the company's existing surety bond
portfolio.
In addition, Peabody pursued cost reductions across each of its
mines as well as corporate and support functions. In large
part due to these actions, full year SG&A decreased 31 percent
compared to the prior year and operating costs per ton
improved. Despite volume reductions across the business in
2020, three out of four of the company's operating segments lowered
costs per ton compared to the prior year.
Seaborne thermal coal markets have recently shown signs of
improvement with Newcastle forward prices averaging over
$80 per tonne in 2021. Colder
than expected weather across Asia
and Europe has resulted in record
high power generation in key markets, driving global LNG prices
significantly higher and supporting increased seaborne thermal coal
demand. In addition, seaborne thermal supply has been
impacted by severe wet weather in Indonesia as well as COVID-related production
disruptions in China and labor
issues in Colombia. While global thermal coal demand will
ultimately be dependent on the timing and scale of a COVID
recovery, Peabody's seaborne thermal segment is well positioned to
serve that demand. Over the past five years, the company's
seaborne thermal segment has averaged costs per ton of
approximately $31, remaining
competitive in nearly any pricing environment.
While seaborne met coal pricing has improved from 2020 lows,
disrupted metallurgical trade flows have contributed to short term
pricing volatility. In addition, limitations on Australian
imports into China as well as the
scope and scale of a steel recovery in traditional regions continue
to weigh on markets. China
has continued to not import Australian coals even as the spread
between Australian and non-Australian premium hard coking coals
reached an all-time high in January, resulting in China paying a significant premium for
non-Australian met coal. However, outside of China, demand has started to pick up in the
traditional markets of Japan and
Korea as well as India. Peabody remains focused on improving
its seaborne met segment cost profile, particularly at Shoal Creek
and Metropolitan, and will continue to be cautious and deliberate
in its actions to resume production at currently idled
operations.
U.S. thermal coal markets continue to be heavily influenced by
natural gas prices, growth in renewable generation and
weather. In 2020, coal's share of the generation mix declined
to 19 percent from 23 percent in the prior year, while natural gas'
share rose to 40 percent as prompt natural gas prices averaged
$2.13 per mmBtu. While current
natural gas forward prices are above a key competitive mark of
$2.50 per mmBtu, coal demand
continues to be impacted by secular decline. Peabody remains
committed to continuing to serve its customers from its low-cost
operations, which have reduced full year costs per ton by 12
percent compared to the prior year, despite lower shipments.
Capital Structure Update
In January 2021, Peabody closed on
its previously announced exchange transactions to extend its debt
maturity profile, eliminate its net leverage ratio covenant and
finalize the collateral standstill agreement with its surety
providers, preserving operating liquidity and financial
flexibility. Peabody's capital structure now includes
approximately $1.5 billion of funded
debt (with $60.3 million maturing
prior to December 2024), a
$324 million senior secured letter of
credit facility and a $250 million
accounts receivable securitization facility.
"We sincerely appreciate the support provided by multiple
stakeholders, including our revolving credit lenders, 2022
noteholders and surety bond providers, to enact a comprehensive
solution that we believe will benefit all stakeholders," said
Peabody Executive Vice President and CFO Mark Spurbeck. "Our new capital structure
provides a foundation for future value creation and the time needed
to continue to pursue cash flow improvements across our operations
and capture seaborne market improvements."
The surety agreement substantially reduces contingent liquidity
risk by resolving outstanding collateral requests and limiting
future collateral requirements related to the company's
$1.6 billion portfolio of reclamation
and other surety bonds. In accordance with the agreement,
Peabody posted $75 million of letters
of credit in December 2020 and will
post an additional $25 million of
collateral per year beginning in 2021 through 2024 for the benefit
of the sureties. Surety providers have agreed to not demand
any additional collateral for existing bonds; draw on letters of
credit posted for the benefit of themselves; or cancel any existing
surety bond during the agreement period.
Comprehensive Improvement Program Update
Peabody's comprehensive improvement program, spanning
operational and functional aspects of the business, included the
following key actions and results in 2020, among other
items:
- Idled 9 individual mines over the course of 2020 for periods
ranging from one week to multiple months, adjusted shift schedules
to match demand and reduced the number of production units in
operation. In total, the company reduced operational positions by
approximately 1,850 employees in 2020. Including non-operational
positions, Peabody reduced its global headcount by about 2,000
employees, representing approximately 30 percent of its
workforce.
- Streamlined corporate and support areas of the business and
eliminated other administrative costs, resulting in lower year over
year SG&A expense of $45.5
million.
- Reduced rail and port commitments for North Goonyella beginning
mid-year 2020, lowering North Goonyella holding costs to
approximately $5 million per
quarter.
Peabody continues to take other actions to improve its
competitive position, particularly within its seaborne met segment.
Actions currently underway include the following:
- Idled Shoal Creek in October 2020
to reset the cost structure of the mine amid weak pricing and
demand. Discussions are ongoing with key stakeholders.
- Idled Metropolitan in late December
2020. Discussions continue with Metropolitan's customers and
workforce that would enable the mine to resume operations. The
workforce is targeted to return in May
2021.
- Continuing the Moorvale South project, which will transition
the mine from a greater mix of PCI production to semi-hard coking
coal and extend the life of the mine. This project also allows for
continued blending opportunities with Coppabella to further improve
coal quality.
- Commencing development of next longwall panel at Wambo
Underground that will enable continued mining in the current
district into 2022.
Segment Performance
During the fourth quarter, the seaborne thermal segment exported
3.2 million tons at an average realized price of $47.84 per ton with the remaining 2.0 million
tons sold under a long-term domestic contract. Fourth quarter
seaborne thermal segment costs of $27.00 per ton decreased 12 percent compared to
the prior year, primarily due to continued strong performance from
the Wambo surface and Wilpinjong mines. Despite weak seaborne
thermal pricing, the segment delivered 24 percent Adjusted EBITDA
margins, or $45.1 million of Adjusted
EBITDA, in the fourth quarter.
In the fourth quarter, Wilpinjong sold 3.6 million tons and
contributed approximately $21 million
to the seaborne thermal segment's Adjusted EBITDA. In
addition, Wilpinjong had $5 million
of capital expenditures in the fourth quarter.
The seaborne met segment shipped 1.4 million tons at an average
realized price of $83.94 per short
ton in the fourth quarter. Seaborne met costs of $107.30 per ton were impacted by the suspension
of Shoal Creek, a longwall move at Metropolitan and mine sequencing
at Coppabella and Moorvale. As a result, the segment reported
an Adjusted EBITDA loss of $34.1
million.
The PRB segment shipped 22.2 million tons at an average realized
price of $11.41 per ton.
Despite a 20 percent reduction in volumes from the prior year and
COVID-related challenges, the PRB costs per ton decreased to
$9.08 primarily due to strong
productivity and disciplined cost control. The segment
reported 20 percent Adjusted EBITDA margins and Adjusted EBITDA of
$51.8 million.
The other U.S. thermal segment shipped 4.8 million tons at an
average realized price of $38.88 per
ton. Cost per ton decreased 25 percent from the prior year
primarily due to fourth quarter 2019 costs being elevated due to
the Kayenta settlement (year over year impact of $7.43 per ton) as well as the benefits of cost
management efforts, lower fuel prices and favorable mix. The
segment reported 25 percent Adjusted EBITDA margins and Adjusted
EBITDA of $45.4 million.
Full-year 2020 consolidated Adjusted EBITDA totaled $258.8 million compared to $883.0 million in the prior year as demand and
pricing were significantly pressured and the company closed mines
that contributed approximately $195
million of Adjusted EBITDA in 2019.
Outlook
Based on current market conditions, Peabody anticipates the
following results in 2021:
U.S. Thermal Operations: U.S. thermal coal deliveries are
largely dependent on general economic conditions, weather, natural
gas prices and utility inventory levels. Peabody is planning
for PRB volumes to largely be in line with 2020 shipments, with
about 80 percent of 2021 tons currently priced at an average price
of $10.82 per ton. Other U.S.
thermal shipments are planned to decline modestly from 2020 levels,
with approximately 16 million tons priced at an average price of
approximately $37.50 per
ton.
Based on expected production levels, Peabody anticipates PRB and
other U.S. thermal costs per ton to be largely in line with 2020
levels.
Seaborne Thermal: In December
2020, the United Wambo JV began joint production from the
open-cut mine, enabling continued production of a high-quality
seaborne thermal product. 2021 volumes are expected to be
approximately 2 million tons in 2021 following this
transition. However, Peabody will benefit from lower strip
ratios and access to otherwise stratified reserves.
Wilpinjong export volumes are expected to be largely in line with
2020 levels, while Wambo underground improves modestly.
Peabody anticipates a slight increase in seaborne thermal costs
from 2020 given lower volumes and higher expected
royalties.
Seaborne Met: Prior 2021 seaborne met projections
assumed Shoal Creek resumed production in early 2021 and that
Metropolitan was fully operational in 2021. Peabody continues
to evaluate market conditions as well as ongoing discussions with
key stakeholders at both mines. 2021 seaborne met shipments
are expected to be modestly lower than 2020 volumes due to the
timing of restarts, partly offset by slightly higher CMJV
shipments.
Corporate and Other: In conjunction with Peabody's
commitment to lowering costs and streamlining activities, SG&A
expense is expected to be further reduced to $90 million. Capital expenditures are
expected to be $225 million,
including approximately $135 million
on major project capital primarily for the seaborne thermal
segment. 2021 interest expense is expected to be
approximately $200 million, including
$50 million of non-cash expense.
Peabody also anticipates the following cash impacts in
2021:
- $60 million related to final
reclamation activities
- $45 million related to the
refinancing transaction
- $30 million related to
postretirement benefits in excess of expense
- $15 million related to final
multi-employer pension plan (MEPP) payment
First quarter 2021 results are expected to be lower compared to
the fourth quarter of 2020 given reduced volumes across all
segments. Lower customer demand, in part due to customers
taking higher volumes in the fourth quarter to meet calendar based
contractual commitments, is expected to result in lower U.S.
thermal shipments. Seaborne thermal shipments are expected to
decline based on lower production volumes from the United Wambo
JV. Seaborne met shipments are also expected to be impacted
by the actions undertaken at Shoal Creek and Metropolitan.
Fourth quarter 2020 shipments from Shoal Creek and Metropolitan
totaled approximately 600,000 tons.
Today's earnings call is scheduled for 10
a.m. CT and can be accessed via the company's website at
PeabodyEnergy.com.
Peabody (NYSE: BTU) is a leading coal producer, providing
essential products to fuel baseload electricity for emerging and
developed countries and create the steel needed to build
foundational infrastructure. Our commitment to sustainability
underpins our activities today and helps to shape our strategy for
the future. For further information, visit
PeabodyEnergy.com.
Contact:
Julie
Gates
314.342.4336
|
1 Adjusted EBITDA is a non-GAAP
financial measure. Revenues per ton, costs per ton, Adjusted
EBITDA margin per ton and percent are non-GAAP
operating/statistical measures. Adjusted EBITDA margin is
equal to segment Adjusted EBITDA divided by segment revenues.
Please refer to the tables and related notes in this press release
for a reconciliation and definition of non-GAAP financial
measures.
|
Condensed
Consolidated Statements of Operations (Unaudited)
|
|
|
For the Quarters
and Years Ended Dec. 31, 2020 and 2019
|
|
|
|
|
|
|
|
|
|
(In Millions, Except
Per Share Data)
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
Year
Ended
|
|
|
Dec.
|
|
Dec.
|
|
Dec.
|
|
Dec.
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
|
|
|
|
|
|
|
|
Tons Sold
|
34.0
|
|
|
40.8
|
|
|
132.6
|
|
|
165.5
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
737.2
|
|
|
$
|
1,117.4
|
|
|
$
|
2,881.1
|
|
|
$
|
4,623.4
|
|
Operating Costs and
Expenses (1)
|
638.2
|
|
|
825.1
|
|
|
2,524.9
|
|
|
3,536.6
|
|
Depreciation,
Depletion and Amortization
|
79.5
|
|
|
121.6
|
|
|
346.0
|
|
|
601.0
|
|
Asset Retirement
Obligation Expenses
|
(0.3)
|
|
|
13.8
|
|
|
45.7
|
|
|
58.4
|
|
Selling and
Administrative Expenses
|
22.2
|
|
|
37.2
|
|
|
99.5
|
|
|
145.0
|
|
Restructuring
Charges
|
6.8
|
|
|
23.0
|
|
|
37.9
|
|
|
24.3
|
|
Transaction Costs
Related to Joint Ventures
|
—
|
|
|
11.8
|
|
|
23.1
|
|
|
21.6
|
|
Other Operating
(Income) Loss:
|
|
|
|
|
|
|
|
Net (Gain) Loss on
Disposals
|
(4.8)
|
|
|
0.7
|
|
|
(15.2)
|
|
|
(2.1)
|
|
Gain on Formation of
United Wambo Joint Venture
|
—
|
|
|
(48.1)
|
|
|
—
|
|
|
(48.1)
|
|
Asset
Impairment
|
69.3
|
|
|
250.2
|
|
|
1,487.4
|
|
|
270.2
|
|
Provision for North
Goonyella Equipment Loss
|
—
|
|
|
58.5
|
|
|
—
|
|
|
83.2
|
|
North Goonyella
Insurance Recovery
|
—
|
|
|
—
|
|
|
—
|
|
|
(125.0)
|
|
Loss (Income) from
Equity Affiliates
|
34.4
|
|
|
(10.9)
|
|
|
60.1
|
|
|
(3.4)
|
|
Operating (Loss)
Profit
|
(108.1)
|
|
|
(165.5)
|
|
|
(1,728.3)
|
|
|
61.7
|
|
Interest
Expense
|
37.5
|
|
|
37.0
|
|
|
139.8
|
|
|
144.2
|
|
Interest
Income
|
(2.3)
|
|
|
(4.5)
|
|
|
(9.4)
|
|
|
(27.0)
|
|
Net Periodic Benefit
(Credit) Costs, Excluding Service Cost
|
(10.1)
|
|
|
4.8
|
|
|
(1.8)
|
|
|
19.4
|
|
Net Mark-to-Market
Adjustment on Actuarially Determined Liabilities
|
(18.1)
|
|
|
67.4
|
|
|
(5.1)
|
|
|
67.4
|
|
Loss from Continuing
Operations Before Income Taxes
|
(115.1)
|
|
|
(270.2)
|
|
|
(1,851.8)
|
|
|
(142.3)
|
|
Income Tax
Provision
|
5.3
|
|
|
20.0
|
|
|
8.0
|
|
|
46.0
|
|
Loss from Continuing
Operations, Net of Income Taxes
|
(120.4)
|
|
|
(290.2)
|
|
|
(1,859.8)
|
|
|
(188.3)
|
|
(Loss) Income from
Discontinued Operations, Net of Income Taxes
|
(7.2)
|
|
|
13.8
|
|
|
(14.0)
|
|
|
3.2
|
|
Net Loss
|
(127.6)
|
|
|
(276.4)
|
|
|
(1,873.8)
|
|
|
(185.1)
|
|
Less: Net Income
(Loss) Attributable to Noncontrolling Interests
|
1.6
|
|
|
13.4
|
|
|
(3.5)
|
|
|
26.2
|
|
Net Loss Attributable
to Common Stockholders
|
$
|
(129.2)
|
|
|
$
|
(289.8)
|
|
|
$
|
(1,870.3)
|
|
|
$
|
(211.3)
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
(2)
|
$
|
103.2
|
|
|
$
|
239.7
|
|
|
$
|
258.8
|
|
|
$
|
883.0
|
|
|
|
|
|
|
|
|
|
|
Diluted EPS - Loss
from Continuing Operations (3)(4)
|
$
|
(1.25)
|
|
|
$
|
(3.12)
|
|
|
$
|
(18.99)
|
|
|
$
|
(2.07)
|
|
|
|
|
|
|
|
|
|
Diluted EPS - Net
Loss Attributable to Common Stockholders (3)
|
$
|
(1.32)
|
|
|
$
|
(2.98)
|
|
|
$
|
(19.14)
|
|
|
$
|
(2.04)
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Excludes items shown
separately.
|
(2)
|
Adjusted EBITDA is a
non-GAAP financial measure. Refer to the "Reconciliation of
Non-GAAP Financial Measures" section in this document for
definitions and reconciliations to the most comparable measures
under U.S. GAAP.
|
(3)
|
During the quarters
ended December 31, 2020 and 2019, weighted average diluted
shares outstanding were 97.9 million and 97.3 million,
respectively. During the years ended December 31, 2020 and
2019, weighted average diluted shares outstanding were 97.7 million
and 103.7 million, respectively.
|
(4)
|
Reflects loss from
continuing operations, net of income taxes less net income (loss)
attributable to noncontrolling interests.
|
|
|
|
|
|
|
|
|
|
This information
is intended to be reviewed in conjunction with the company's
filings with the SEC.
|
Supplemental
Financial Data (Unaudited)
|
|
|
For the Quarters
and Years Ended Dec. 31, 2020 and 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
Year
Ended
|
|
|
Dec.
|
|
Dec.
|
|
Dec.
|
|
Dec.
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Tons Sold (In
Millions)
|
|
|
|
|
|
|
|
Seaborne Thermal
Mining Operations
|
5.2
|
|
|
5.4
|
|
|
19.0
|
|
|
19.5
|
|
Seaborne
Metallurgical Mining Operations
|
1.4
|
|
|
1.9
|
|
|
5.6
|
|
|
8.1
|
|
Powder River Basin
Mining Operations
|
22.2
|
|
|
27.6
|
|
|
87.2
|
|
|
108.1
|
|
Other U.S. Thermal
Mining Operations (1)
|
4.8
|
|
|
5.6
|
|
|
18.3
|
|
|
27.9
|
|
Total U.S. Thermal
Mining Operations
|
27.0
|
|
|
33.2
|
|
|
105.5
|
|
|
136.0
|
|
Corporate and
Other
|
0.4
|
|
|
0.3
|
|
|
2.5
|
|
|
1.9
|
|
Total
|
34.0
|
|
|
40.8
|
|
|
132.6
|
|
|
165.5
|
|
|
|
|
|
|
|
|
|
Revenue Summary (In
Millions)
|
|
|
|
|
|
|
|
Seaborne Thermal
Mining Operations
|
$
|
185.7
|
|
|
$
|
251.0
|
|
|
$
|
711.8
|
|
|
$
|
971.7
|
|
Seaborne
Metallurgical Mining Operations
|
122.9
|
|
|
201.4
|
|
|
486.5
|
|
|
1,033.1
|
|
Powder River Basin
Mining Operations
|
253.9
|
|
|
325.2
|
|
|
991.1
|
|
|
1,228.7
|
|
Other U.S. Thermal
Mining Operations (1)
|
183.2
|
|
|
338.6
|
|
|
707.3
|
|
|
1,309.4
|
|
Total U.S. Thermal
Mining Operations
|
437.1
|
|
|
663.8
|
|
|
1,698.4
|
|
|
2,538.1
|
|
Corporate and
Other
|
(8.5)
|
|
|
1.2
|
|
|
(15.6)
|
|
|
80.5
|
|
Total
|
$
|
737.2
|
|
|
$
|
1,117.4
|
|
|
$
|
2,881.1
|
|
|
$
|
4,623.4
|
|
|
|
|
|
|
|
|
|
|
Total Reporting
Segment Costs Summary (In Millions) (2)
|
|
|
|
|
|
|
|
Seaborne Thermal
Mining Operations
|
$
|
140.6
|
|
|
$
|
167.5
|
|
|
$
|
548.6
|
|
|
$
|
642.3
|
|
Seaborne
Metallurgical Mining Operations
|
157.0
|
|
|
188.2
|
|
|
616.7
|
|
|
892.9
|
|
North Goonyella
Equipment & Development Costs (3)
|
—
|
|
|
16.9
|
|
|
—
|
|
|
77.6
|
|
Seaborne Metallurgical
Mining Operations, Excluding North Goonyella
Equipment & Development Costs
|
157.0
|
|
|
171.3
|
|
|
616.7
|
|
|
815.3
|
|
Powder River Basin
Mining Operations
|
202.1
|
|
|
251.3
|
|
|
796.3
|
|
|
1,007.5
|
|
Other U.S. Thermal
Mining Operations (1)
|
137.8
|
|
|
218.5
|
|
|
538.9
|
|
|
948.0
|
|
Total U.S. Thermal
Mining Operations
|
339.9
|
|
|
469.8
|
|
|
1,335.2
|
|
|
1,955.5
|
|
Corporate and
Other
|
(4.5)
|
|
|
8.1
|
|
|
37.9
|
|
|
49.2
|
|
Total
|
$
|
633.0
|
|
|
$
|
833.6
|
|
|
$
|
2,538.4
|
|
|
$
|
3,539.9
|
|
|
|
|
|
|
|
|
|
Other Supplemental
Financial Data (In Millions)
|
|
|
|
|
|
|
|
Adjusted EBITDA -
Seaborne Thermal Mining Operations
|
$
|
45.1
|
|
|
$
|
83.5
|
|
|
$
|
163.2
|
|
|
$
|
329.4
|
|
Adjusted EBITDA -
Seaborne Metallurgical Mining Operations
|
(34.1)
|
|
|
13.2
|
|
|
(130.2)
|
|
|
140.2
|
|
North Goonyella
Equipment & Development Costs (3)
|
—
|
|
|
16.9
|
|
|
—
|
|
|
77.6
|
|
Adjusted EBITDA -
Seaborne Metallurgical Mining Operations,
Excluding North Goonyella Equipment & Development
Costs
|
(34.1)
|
|
|
30.1
|
|
|
(130.2)
|
|
|
217.8
|
|
Adjusted EBITDA -
Powder River Basin Mining Operations
|
51.8
|
|
|
73.9
|
|
|
194.8
|
|
|
221.2
|
|
Adjusted EBITDA - Other
U.S. Thermal Mining Operations (1)
|
45.4
|
|
|
120.1
|
|
|
168.4
|
|
|
361.4
|
|
Adjusted EBITDA -
Total U.S. Thermal Mining Operations
|
97.2
|
|
|
194.0
|
|
|
363.2
|
|
|
582.6
|
|
Middlemount
(4)
|
(2.0)
|
|
|
(4.9)
|
|
|
(29.2)
|
|
|
(9.8)
|
|
Resource Management
Results (5)
|
5.5
|
|
|
2.2
|
|
|
15.3
|
|
|
8.2
|
|
Selling and
Administrative Expenses
|
(22.2)
|
|
|
(37.2)
|
|
|
(99.5)
|
|
|
(145.0)
|
|
Other Operating
Costs, Net (6)
|
13.7
|
|
|
(11.1)
|
|
|
(24.0)
|
|
|
(22.6)
|
|
Adjusted EBITDA
(2)
|
$
|
103.2
|
|
|
$
|
239.7
|
|
|
$
|
258.8
|
|
|
$
|
883.0
|
|
|
|
|
|
|
|
|
|
Note:
See footnote explanations on following page
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental
Financial Data (Unaudited)
|
|
|
For the Quarters
and Years Ended Dec. 31, 2020 and 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
Year
Ended
|
|
|
Dec.
|
|
Dec.
|
|
Dec.
|
|
Dec.
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Revenues per Ton -
Mining Operations (7)
|
|
|
|
|
|
|
|
Seaborne
Thermal
|
$
|
35.67
|
|
|
$
|
45.97
|
|
|
$
|
37.46
|
|
|
$
|
49.69
|
|
Seaborne
Metallurgical
|
83.94
|
|
|
104.62
|
|
|
86.33
|
|
|
127.62
|
|
Powder River
Basin
|
11.41
|
|
|
11.81
|
|
|
11.37
|
|
|
11.37
|
|
Other U.S. Thermal
(1)
|
38.88
|
|
|
60.05
|
|
|
38.73
|
|
|
46.85
|
|
Total U.S.
Thermal
|
16.21
|
|
|
20.00
|
|
|
16.10
|
|
|
18.66
|
|
|
|
|
|
|
|
|
|
|
Costs per Ton -
Mining Operations (7)(8)
|
|
|
|
|
|
|
|
Seaborne
Thermal
|
$
|
27.00
|
|
|
$
|
30.68
|
|
|
$
|
28.87
|
|
|
$
|
32.84
|
|
Seaborne
Metallurgical
|
107.30
|
|
|
97.69
|
|
|
109.44
|
|
|
110.30
|
|
North Goonyella
Equipment & Development Costs (3)
|
—
|
|
|
8.78
|
|
|
—
|
|
|
9.59
|
|
Seaborne Metallurgical,
Excluding North Goonyella
Equipment & Development Costs
|
107.30
|
|
|
88.91
|
|
|
109.44
|
|
|
100.71
|
|
Powder River
Basin
|
9.08
|
|
|
9.13
|
|
|
9.14
|
|
|
9.32
|
|
Other U.S. Thermal
(1)
|
29.24
|
|
|
38.74
|
|
|
29.51
|
|
|
33.91
|
|
Total U.S.
Thermal
|
12.60
|
|
|
14.15
|
|
|
12.66
|
|
|
14.38
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
Margin per Ton - Mining Operations (7)(8)
|
|
|
|
|
|
|
|
Seaborne
Thermal
|
$
|
8.67
|
|
|
$
|
15.29
|
|
|
$
|
8.59
|
|
|
$
|
16.85
|
|
Seaborne
Metallurgical
|
(23.36)
|
|
|
6.93
|
|
|
(23.11)
|
|
|
17.32
|
|
North Goonyella
Equipment & Development Costs (3)
|
—
|
|
|
8.78
|
|
|
—
|
|
|
9.59
|
|
Seaborne Metallurgical,
Excluding North Goonyella
Equipment & Development Costs
|
(23.36)
|
|
|
15.71
|
|
|
(23.11)
|
|
|
26.91
|
|
Powder River
Basin
|
2.33
|
|
|
2.68
|
|
|
2.23
|
|
|
2.05
|
|
Other U.S. Thermal
(1)
|
9.64
|
|
|
21.31
|
|
|
9.22
|
|
|
12.94
|
|
Total U.S.
Thermal
|
3.61
|
|
|
5.85
|
|
|
3.44
|
|
|
4.28
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Beginning Q1 2020, we
have combined the Midwestern U.S. Mining segment with the
Western U.S. Mining segment to reflect the manner in which our
chief operating decision maker now views our businesses for
purposes of reviewing performance, allocating resources and
assessing future prospects and strategic execution. All periods
presented have been recast for comparability.
|
(2)
|
Total Reporting
Segment Costs and Adjusted EBITDA are non-GAAP financial measures.
Refer to the "Reconciliation of Non-GAAP Financial Measures"
section in this document for definitions and reconciliations to the
most comparable measures under U.S. GAAP.
|
(3)
|
Costs incurred from
January 1, 2020 forward are included within Other Operating
Costs, Net. Costs incurred prior to January 1, 2020 remain
within the Seaborne Metallurgical segment.
|
(4)
|
We account for our
50% equity interest in Middlemount Coal Pty Ltd. (Middlemount),
which owns the Middlemount Mine, under the equity method.
Middlemount's standalone results exclude the impact of related
changes in deferred tax asset valuation allowance and reserves and
amortization of basis difference recorded by the company in
applying the equity method. Middlemount's standalone results
include (on a 50% attributable basis):
|
|
|
Quarter
Ended
|
|
Year
Ended
|
|
|
Dec.
|
|
Dec.
|
|
Dec.
|
|
Dec.
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
|
(In
Millions)
|
|
Tons sold
|
0.4
|
|
|
0.3
|
|
|
1.6
|
|
|
1.5
|
|
|
Depreciation,
depletion and amortization and asset retirement obligation
expenses
|
$
|
6.5
|
|
|
$
|
7.8
|
|
|
$
|
30.0
|
|
|
$
|
23.1
|
|
|
Net interest
expense
|
4.2
|
|
|
2.7
|
|
|
14.2
|
|
|
9.1
|
|
|
Income tax
benefit
|
(2.6)
|
|
|
(5.5)
|
|
|
(14.3)
|
|
|
(7.1)
|
|
(5)
|
Includes gains
(losses) on certain surplus coal reserve and surface land sales and
property management costs and revenues.
|
(6)
|
Includes trading and
brokerage activities, costs associated with post-mining activities,
minimum charges on certain transportation-related contracts and
costs associated with suspended operations including the North
Goonyella Mine.
|
(7)
|
Revenues per Ton,
Costs per Ton and Adjusted EBITDA Margin per Ton are metrics used
by management to measure each of our mining segment's operating
performance. Revenues per Ton and Adjusted EBITDA Margin per Ton
are equal to revenues by segment and Adjusted EBITDA by segment,
respectively, divided by segment tons sold. Costs per Ton is equal
to Revenues per Ton less Adjusted EBITDA Margin per Ton. Management
believes Costs per Ton and Adjusted EBITDA Margin per Ton best
reflect controllable costs and operating results at the mining
segment level. We consider all measures reported on a per ton basis
to be operating/statistical measures; however, we include
reconciliations of the related non-GAAP financial measures
(Adjusted EBITDA and Total Reporting Segment Costs) in the
"Reconciliation of Non-GAAP Financial Measures" section in this
document.
|
(8)
|
Includes
revenue-based production taxes and royalties; excludes
depreciation, depletion and amortization; asset retirement
obligation expenses; selling and administrative expenses;
restructuring charges; asset impairment; provision for North
Goonyella equipment loss and related insurance recovery;
amortization of take-or-pay contract-based intangibles; and certain
other costs related to post-mining activities.
|
|
|
|
|
|
|
|
|
|
This information
is intended to be reviewed in conjunction with the company's
filings with the SEC.
|
Condensed
Consolidated Balance Sheets
|
|
As of Dec. 31,
2020 and 2019
|
|
|
|
|
(Dollars In
Millions)
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
Dec. 31,
2020
|
|
Dec. 31,
2019
|
Cash and Cash
Equivalents
|
$
|
709.2
|
|
|
$
|
732.2
|
|
Accounts Receivable,
Net
|
244.8
|
|
|
329.5
|
|
Inventories
|
261.6
|
|
|
331.5
|
|
Other Current
Assets
|
204.7
|
|
|
220.7
|
|
Total Current
Assets
|
1,420.3
|
|
|
1,613.9
|
|
Property, Plant,
Equipment and Mine Development, Net
|
3,051.1
|
|
|
4,679.1
|
|
Operating Lease
Right-of-Use Assets
|
49.9
|
|
|
82.4
|
|
Investments and Other
Assets
|
140.9
|
|
|
139.1
|
|
Deferred Income
Taxes
|
4.9
|
|
|
28.3
|
|
Total
Assets
|
$
|
4,667.1
|
|
|
$
|
6,542.8
|
|
|
|
|
|
Current Portion of
Long-Term Debt
|
$
|
25.5
|
|
|
$
|
18.3
|
|
Accounts Payable and
Accrued Expenses
|
745.7
|
|
|
957.0
|
|
Total Current
Liabilities
|
771.2
|
|
|
975.3
|
|
Long-Term Debt, Less
Current Portion
|
1,522.3
|
|
|
1,292.5
|
|
Deferred Income
Taxes
|
35.0
|
|
|
28.8
|
|
Asset Retirement
Obligations
|
650.5
|
|
|
654.1
|
|
Accrued
Postretirement Benefit Costs
|
413.2
|
|
|
593.4
|
|
Operating Lease
Liabilities, Less Current Portion
|
42.1
|
|
|
52.8
|
|
Other Noncurrent
Liabilities
|
251.5
|
|
|
273.4
|
|
Total
Liabilities
|
3,685.8
|
|
|
3,870.3
|
|
|
|
|
|
Common
Stock
|
1.4
|
|
|
1.4
|
|
Additional Paid-in
Capital
|
3,364.6
|
|
|
3,351.1
|
|
Treasury
Stock
|
(1,368.9)
|
|
|
(1,367.3)
|
|
(Accumulated Deficit)
Retained Earnings
|
(1,273.3)
|
|
|
597.0
|
|
Accumulated Other
Comprehensive Income
|
205.8
|
|
|
31.6
|
|
Peabody Energy
Corporation Stockholders' Equity
|
929.6
|
|
|
2,613.8
|
|
Noncontrolling
Interests
|
51.7
|
|
|
58.7
|
|
Total Stockholders'
Equity
|
981.3
|
|
|
2,672.5
|
|
Total Liabilities and
Stockholders' Equity
|
$
|
4,667.1
|
|
|
$
|
6,542.8
|
|
|
|
|
|
This information
is intended to be reviewed in conjunction with the company's
filings with the SEC.
|
Condensed
Consolidated Statements of Cash Flows (Unaudited)
|
|
|
For the Quarters
and Years Ended Dec. 31, 2020 and 2019
|
|
|
|
|
|
|
|
|
|
(Dollars In
Millions)
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
Year
Ended
|
|
Dec.
|
|
Dec.
|
|
Dec.
|
|
Dec.
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Cash Flows From
Operating Activities
|
|
|
|
|
|
|
|
Net Cash Provided
By Continuing Operations
|
$
|
24.7
|
|
|
$
|
127.6
|
|
|
$
|
15.0
|
|
|
$
|
705.4
|
|
Net Cash Used in
Discontinued Operations
|
(2.3)
|
|
|
(2.8)
|
|
|
(24.7)
|
|
|
(28.0)
|
|
Net Cash Provided
By (Used In) Operating Activities
|
22.4
|
|
|
124.8
|
|
|
(9.7)
|
|
|
677.4
|
|
Cash Flows From
Investing Activities
|
|
|
|
|
|
|
|
Additions to
Property, Plant, Equipment and Mine Development
|
(59.5)
|
|
|
(102.6)
|
|
|
(191.4)
|
|
|
(285.4)
|
|
Changes in Accrued
Expenses Related to Capital Expenditures
|
8.8
|
|
|
5.7
|
|
|
(6.1)
|
|
|
0.1
|
|
Insurance Proceeds
Attributable to North Goonyella Equipment Losses
|
—
|
|
|
—
|
|
|
—
|
|
|
23.2
|
|
Proceeds from
Disposal of Assets, Net of Receivables
|
11.7
|
|
|
2.4
|
|
|
27.1
|
|
|
30.0
|
|
Amount Attributable
to Acquisition of Shoal Creek Mine
|
—
|
|
|
—
|
|
|
—
|
|
|
(2.4)
|
|
Contributions to
Joint Ventures
|
(67.8)
|
|
|
(92.7)
|
|
|
(343.0)
|
|
|
(419.1)
|
|
Distributions from
Joint Ventures
|
59.3
|
|
|
92.1
|
|
|
330.3
|
|
|
408.8
|
|
Advances to Related
Parties
|
(0.1)
|
|
|
(14.8)
|
|
|
(23.2)
|
|
|
(27.3)
|
|
Cash Receipts from
Middlemount Coal Pty Ltd
|
—
|
|
|
—
|
|
|
—
|
|
|
14.7
|
|
Investment in Equity
Securities
|
—
|
|
|
(3.0)
|
|
|
—
|
|
|
(3.0)
|
|
Other, Net
|
0.3
|
|
|
(0.8)
|
|
|
(0.4)
|
|
|
(0.9)
|
|
Net Cash Used In
Investing Activities
|
(47.3)
|
|
|
(113.7)
|
|
|
(206.7)
|
|
|
(261.3)
|
|
Cash Flows From
Financing Activities
|
|
|
|
|
|
|
|
Proceeds from
Long-Term Debt
|
15.0
|
|
|
—
|
|
|
375.0
|
|
|
—
|
|
Repayments of
Long-Term Debt
|
(88.5)
|
|
|
(47.2)
|
|
|
(169.5)
|
|
|
(71.1)
|
|
Payment of Debt
Issuance and Other Deferred Financing Costs
|
(7.0)
|
|
|
—
|
|
|
(7.0)
|
|
|
(6.4)
|
|
Common Stock
Repurchases
|
—
|
|
|
(29.7)
|
|
|
—
|
|
|
(329.9)
|
|
Repurchase of
Employee Common Stock Relinquished for Tax
Withholding
|
—
|
|
|
—
|
|
|
(1.6)
|
|
|
(12.3)
|
|
Dividends
Paid
|
—
|
|
|
(14.2)
|
|
|
—
|
|
|
(258.1)
|
|
Distributions to
Noncontrolling Interests
|
—
|
|
|
(0.1)
|
|
|
(3.5)
|
|
|
(23.5)
|
|
Other, Net
|
—
|
|
|
(0.1)
|
|
|
—
|
|
|
—
|
|
Net Cash (Used In)
Provided By Financing Activities
|
(80.5)
|
|
|
(91.3)
|
|
|
193.4
|
|
|
(701.3)
|
|
Net Change in
Cash, Cash Equivalents and Restricted Cash
|
(105.4)
|
|
|
(80.2)
|
|
|
(23.0)
|
|
|
(285.2)
|
|
Cash, Cash
Equivalents and Restricted Cash at Beginning of
Period
|
814.6
|
|
|
812.4
|
|
|
732.2
|
|
|
1,017.4
|
|
Cash, Cash
Equivalents and Restricted Cash at End of Period
|
$
|
709.2
|
|
|
$
|
732.2
|
|
|
$
|
709.2
|
|
|
$
|
732.2
|
|
|
|
|
|
|
|
|
|
This information
is intended to be reviewed in conjunction with the company's
filings with the SEC.
|
|
|
|
|
Reconciliation of
Non-GAAP Financial Measures (Unaudited)
|
For the Quarters
and Years Ended Dec. 31, 2020 and 2019
|
|
|
|
|
|
|
|
|
|
(Dollars In
Millions)
|
|
|
|
|
|
|
|
|
|
Note:
Management believes that non-GAAP performance measures are used by
investors to measure our operating performance and lenders to
measure our ability to incur and service debt. These measures are
not intended to serve as alternatives to U.S. GAAP measures of
performance and may not be comparable to similarly-titled measures
presented by other companies.
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
Year
Ended
|
|
|
Dec.
|
|
Dec.
|
|
Dec.
|
|
Dec.
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
|
|
|
|
|
|
|
|
Loss from Continuing
Operations, Net of Income Taxes
|
$
|
(120.4)
|
|
|
$
|
(290.2)
|
|
|
$
|
(1,859.8)
|
|
|
$
|
(188.3)
|
|
Depreciation, Depletion
and Amortization
|
79.5
|
|
|
121.6
|
|
|
346.0
|
|
|
601.0
|
|
Asset Retirement
Obligation Expenses
|
(0.3)
|
|
|
13.8
|
|
|
45.7
|
|
|
58.4
|
|
Restructuring
Charges
|
6.8
|
|
|
23.0
|
|
|
37.9
|
|
|
24.3
|
|
Transaction Costs
Related to Joint Ventures
|
—
|
|
|
11.8
|
|
|
23.1
|
|
|
21.6
|
|
Gain on Formation of
United Wambo Joint Venture
|
—
|
|
|
(48.1)
|
|
|
—
|
|
|
(48.1)
|
|
Asset
Impairment
|
69.3
|
|
|
250.2
|
|
|
1,487.4
|
|
|
270.2
|
|
Provision for North
Goonyella Equipment Loss
|
—
|
|
|
58.5
|
|
|
—
|
|
|
83.2
|
|
North Goonyella
Insurance Recovery - Equipment (1)
|
—
|
|
|
—
|
|
|
—
|
|
|
(91.1)
|
|
Changes in Deferred Tax
Asset Valuation Allowance and Reserves and
Amortization of Basis Difference Related to Equity
Affiliates
|
32.5
|
|
|
(19.1)
|
|
|
30.9
|
|
|
(18.8)
|
|
Interest
Expense
|
37.5
|
|
|
37.0
|
|
|
139.8
|
|
|
144.2
|
|
Interest
Income
|
(2.3)
|
|
|
(4.5)
|
|
|
(9.4)
|
|
|
(27.0)
|
|
Net Mark-to-Market
Adjustment on Actuarially Determined Liabilities
|
(18.1)
|
|
|
67.4
|
|
|
(5.1)
|
|
|
67.4
|
|
Unrealized Losses
(Gains) on Economic Hedges
|
18.3
|
|
|
2.0
|
|
|
29.6
|
|
|
(42.2)
|
|
Unrealized Gains on
Non-Coal Trading Derivative Contracts
|
(3.5)
|
|
|
(1.0)
|
|
|
(7.1)
|
|
|
(1.2)
|
|
Take-or-Pay
Contract-Based Intangible Recognition
|
(1.4)
|
|
|
(2.7)
|
|
|
(8.2)
|
|
|
(16.6)
|
|
Income Tax
Provision
|
5.3
|
|
|
20.0
|
|
|
8.0
|
|
|
46.0
|
|
Adjusted EBITDA
(2)
|
$
|
103.2
|
|
|
$
|
239.7
|
|
|
$
|
258.8
|
|
|
$
|
883.0
|
|
|
|
|
|
|
|
|
|
|
Operating Costs and
Expenses
|
$
|
638.2
|
|
|
$
|
825.1
|
|
|
$
|
2,524.9
|
|
|
$
|
3,536.6
|
|
Unrealized Gains on
Non-Coal Trading Derivative Contracts
|
3.5
|
|
|
1.0
|
|
|
7.1
|
|
|
1.2
|
|
Take-or-Pay
Contract-Based Intangible Recognition
|
1.4
|
|
|
2.7
|
|
|
8.2
|
|
|
16.6
|
|
North Goonyella
Insurance Recovery - Cost Recovery and Business
Interruption (1)
|
—
|
|
|
—
|
|
|
—
|
|
|
(33.9)
|
|
Net Periodic Benefit
(Credit) Costs, Excluding Service Cost
|
(10.1)
|
|
|
4.8
|
|
|
(1.8)
|
|
|
19.4
|
|
Total Reporting
Segment Costs (3)
|
$
|
633.0
|
|
|
$
|
833.6
|
|
|
$
|
2,538.4
|
|
|
$
|
3,539.9
|
|
|
|
|
|
|
|
|
|
Net Cash Provided By
(Used In) Operating Activities
|
$
|
22.4
|
|
|
$
|
124.8
|
|
|
$
|
(9.7)
|
|
|
$
|
677.4
|
|
Net Cash Used In
Investing Activities
|
(47.3)
|
|
|
(113.7)
|
|
|
(206.7)
|
|
|
(261.3)
|
|
Add Back: Amount
Attributable to Acquisition of Shoal Creek Mine
|
—
|
|
|
—
|
|
|
—
|
|
|
2.4
|
|
Free Cash Flow
(4)
|
$
|
(24.9)
|
|
|
$
|
11.1
|
|
|
$
|
(216.4)
|
|
|
$
|
418.5
|
|
|
|
|
|
|
|
|
|
(1)
|
We recorded a $125.0
million insurance recovery during the year ended December 31, 2019
related to losses incurred at our North Goonyella Mine. Of this
amount, Adjusted EBITDA excludes an allocated amount applicable to
total equipment losses recognized at the time of the insurance
recovery settlement, which consisted of $24.7 million and $66.4
million recognized during the years ended December 31, 2019 and
2018, respectively. The remaining $33.9 million, applicable to
incremental costs and business interruption losses, is included in
Adjusted EBITDA for the year ended December 31,
2019.
|
(2)
|
Adjusted EBITDA is
defined as loss from continuing operations before deducting net
interest expense, income taxes, asset retirement obligation
expenses and depreciation, depletion and amortization. Adjusted
EBITDA is also adjusted for the discrete items that management
excluded in analyzing each of our segment's operating performance
as displayed in the reconciliation above. Adjusted EBITDA is used
by management as the primary metric to measure each of our
segment's operating performance. We have retrospectively modified
our calculation of Adjusted EBITDA to exclude restructuring charges
and transaction costs related to joint ventures as management does
not view these items as part of our normal operations.
|
(3)
|
Total Reporting
Segment Costs is defined as operating costs and expenses adjusted
for the discrete items that management excluded in analyzing each
of our segment's operating performance as displayed in the
reconciliation above. Total Reporting Segment Costs is used by
management as a metric to measure each of our segment's operating
performance. We have retrospectively modified our calculation of
Total Reporting Segment Costs to exclude restructuring charges as
management does not view this item as part of our normal
operations.
|
(4)
|
Free Cash Flow is
defined as net cash provided by (used in) operating activities less
net cash used in investing activities and excludes cash outflows
related to business combinations. Free Cash Flow is used by
management as a measure of our financial performance and our
ability to generate excess cash flow from our business
operations.
|
.
|
This information
is intended to be reviewed in conjunction with the company's
filings with the SEC.
|
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the securities laws. Forward-looking statements can
be identified by the fact that they do not relate strictly to
historical or current facts. They often include words or variation
of words such as "expects," "anticipates," "intends," "plans,"
"believes," "seeks," "estimates," "projects," "forecasts,"
"targets," "would," "will," "should," "goal," "could" or "may" or
other similar expressions. Forward-looking statements provide
management's current expectations or predictions of future
conditions, events or results. All statements that address
operating performance, events, or developments that Peabody expects
will occur in the future are forward-looking statements. They may
include estimates of sales and other operating performance targets,
cost savings, capital expenditures, other expense items, actions
relating to strategic initiatives, demand for the company's
products, liquidity, capital structure, market share, industry
volume, other financial items, descriptions of management's plans
or objectives for future operations and descriptions of assumptions
underlying any of the above. All forward-looking statements speak
only as of the date they are made and reflect Peabody's good faith
beliefs, assumptions and expectations, but they are not guarantees
of future performance or events. Furthermore, Peabody disclaims any
obligation to publicly update or revise any forward-looking
statement, except as required by law. By their nature,
forward-looking statements are subject to risks and uncertainties
that could cause actual results to differ materially from those
suggested by the forward-looking statements. Factors that might
cause such differences include, but are not limited to, a variety
of economic, competitive and regulatory factors, many of which are
beyond Peabody's control, including the ongoing impact of the
COVID-19 pandemic and factors that are described in Peabody's
Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2019, and other factors that Peabody may
describe from time to time in other filings with the SEC. You may
get such filings for free at Peabody's website at
www.peabodyenergy.com. You should understand that it is not
possible to predict or identify all such factors and, consequently,
you should not consider any such list to be a complete set of all
potential risks or uncertainties.
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SOURCE Peabody