- Reports first quarter net income of $270.8 million, or $17.01 per diluted share
- Posts Adjusted EBITDA of $354.4
million for the quarter
- Continues executing on robust buyback program by returning
approximately $200 million to
shareholders year-to-date as of May 4,
2023, with roughly $485
million in board authorization remaining
- Increases quarterly dividend to $0.50 from $0.44
per share
BRISTOL,
Tenn., May 8, 2023 /PRNewswire/ -- Alpha
Metallurgical Resources, Inc. (NYSE: AMR), a leading U.S. supplier
of metallurgical products for the steel industry, today reported
financial results for the first quarter ending March 31, 2023.
|
(millions, except per
share)
|
|
Three months
ended
|
|
Mar. 31,
2023
|
Dec. 31,
2022
|
Mar. 31,
2022
|
Net
income
|
$270.8
|
$220.7
|
$400.9
|
Net income per
diluted share
|
$17.01
|
$13.37
|
$20.52
|
Adjusted
EBITDA(1)
|
$354.4
|
$247.9
|
$503.7
|
Operating cash
flow
|
$177.4
|
$185.0
|
$336.1
|
Capital
expenditures
|
($74.2)
|
($61.0)
|
($28.1)
|
Tons of coal
sold
|
3.9
|
3.9
|
4.0
|
__________________________________
|
1. These are
non-GAAP financial measures. A reconciliation of Net Income to
Adjusted EBITDA is included in tables accompanying the financial
schedules.
|
"Coming off an exceptional and record-setting year in 2022, we
set high expectations for Alpha in 2023, and our first quarter
performance is a solid foundation on which we can continue building
throughout the rest of the year," said Andy
Eidson, Alpha's chief executive officer. "In addition to
strong operational performance across the portfolio, we are
progressing well on our capital investment projects. We also
continue to execute on our share repurchase program, working
through the current authorization in place; with approximately
$200 million spent on buybacks year
to date, we have now cumulatively spent approximately $715 million on repurchases, with another roughly
$485 million in remaining
authorization available to spend."
The company's annual meeting of stockholders was held on
May 3, 2023. Shareholders re-elected
all members of Alpha's board of directors who stood for
re-election. The complete voting results from our annual meeting
will be filed on Form 8-K with the Securities and Exchange
Commission.
Financial Performance
Alpha reported net income of $270.8
million, or $17.01 per diluted
share, for the first quarter 2023. In the fourth quarter of 2022,
the company had net income of $220.7
million, or $13.37 per diluted
share.
For the first quarter, total Adjusted EBITDA was $354.4 million, compared to $247.9 million in the fourth quarter
2022.
Coal Revenues
|
(millions)
|
|
Three months
ended
|
|
Mar. 31,
2023
|
Dec. 31,
2022
|
Met
Segment
|
$887.0
|
$804.9
|
All
Other
|
$19.7
|
$16.3
|
Met Segment (excl.
freight & handling)(1)
|
$780.8
|
$699.0
|
All Other (excl.
freight & handling)(1)
|
$19.5
|
$16.3
|
|
|
Tons Sold
|
(millions)
|
|
Three months
ended
|
|
Mar. 31,
2023
|
Dec. 31,
2022
|
Met
Segment
|
3.7
|
3.8
|
All
Other
|
0.2
|
0.1
|
__________________________________
|
1.
Represents Non-GAAP coal revenues which is defined and reconciled
under "Non-GAAP Financial Measures" and "Results of
Operations."
|
Coal Sales Realization(1)
|
(per ton)
|
|
Three months
ended
|
|
Mar. 31,
2023
|
Dec. 31,
2022
|
Met
Segment
|
$208.93
|
$186.29
|
All
Other
|
$109.36
|
$126.10
|
__________________________________
|
1.
Represents Non-GAAP coal sales realization which is defined and
reconciled under "Non-GAAP Financial Measures" and "Results of
Operations."
|
First quarter net realized pricing for the Met segment was
$208.93 per ton and net realization
in the All Other category was $109.36.
The table below provides a breakdown of our Met segment coal
sold in the first quarter by pricing mechanism.
|
(in millions, except
per ton data)
|
Met Segment
Sales
|
Three months ended
Mar. 31, 2023
|
|
Tons
Sold
|
Coal
Revenues
|
Realization/ton(1)
|
% of Met Tons
Sold
|
Export - Other
Pricing Mechanisms
|
1.6
|
$329.2
|
$211.31
|
44 %
|
Domestic
|
1.1
|
$206.4
|
$192.88
|
30 %
|
Export - Australian
Indexed
|
0.9
|
$216.0
|
$240.76
|
26 %
|
Total Met Coal
Revenues
|
3.5
|
$751.6
|
$213.21
|
100 %
|
Thermal Coal
Revenues
|
0.2
|
$29.2
|
$137.65
|
|
Total Met Segment
Coal Revenues (excl. freight &
handling)(1)
|
3.7
|
$780.8
|
$208.93
|
|
__________________________________
|
1.
Represents Non-GAAP coal sales realization which is defined and
reconciled under "Non-GAAP Financial Measures" and "Results of
Operations."
|
Cost of Coal Sales
|
(in millions, except
per ton data)
|
|
Three months
ended
|
|
Mar. 31,
2023
|
Dec. 31,
2022
|
Cost of Coal
Sales
|
$539.1
|
$549.1
|
Cost of Coal Sales
(excl. freight & handling/idle)(1)
|
$426.5
|
$434.3
|
|
|
|
(per ton)
|
Met
Segment(1)
|
$110.56
|
$112.97
|
All
Other(1)
|
$74.69
|
$80.76
|
__________________________________
|
1. Represents Non-GAAP cost of coal
sales and Non-GAAP cost of coal sales per ton which is defined and
reconciled under "Non-GAAP Financial Measures" and "Results of
Operations."
|
Alpha's Met segment cost of coal sales improved to an average of
$110.56 per ton in the first quarter,
compared to $112.97 per ton in the
fourth quarter of 2022. Cost of coal sales for the All Other
category decreased to $74.69 per ton
in the first quarter, down from a cost of $80.76 per ton in the fourth quarter 2022.
Liquidity and Capital Resources
Cash provided by operating activities in the first quarter
decreased to $177.4 million as
compared to $185.0 million in the
fourth quarter 2022. The first quarter operating cash flows were
negatively impacted by an increase of $133.8
million of working capital. The primary drivers were higher
accounts receivable and inventory balances with a partially
offsetting reduction in short-term deposits. Capital expenditures
for the first quarter 2023 were $74.2
million compared to $61.0
million for the fourth quarter of 2022.
As of March 31, 2023, the company
had total liquidity of $315.6
million, including cash and cash equivalents of $222.5 million and $93.1
million of unused availability under the ABL. The future
available capacity under the ABL is subject to inventory and
accounts receivable collateral requirements and the maintenance of
certain financial ratios. As of March 31,
2023, the company had no borrowings and $61.9 million in letters of credit outstanding
under the ABL. Total long-term debt, including the current portion
of long-term debt as of March 31,
2023, was $11.9 million and
consists primarily of equipment financing obligations.
Dividend Program
On May 3, 2023, Alpha's board of directors declared a
quarterly cash dividend payment of $0.50 per share, increased from the prior
quarter's dividend of $0.44 per
share, which will become payable on July 5,
2023 for holders of record as of June
15, 2023.
Any decision to pay future cash dividends will be made by the
board and depend on Alpha's future earnings and financial condition
and other relevant factors.
Share Repurchase Program
As previously announced, Alpha's board of directors authorized a
share repurchase program allowing for the expenditure of up to
$1.2 billion for the repurchase of
the company's common stock. As of May
4, 2023, the company has acquired approximately 4.8 million
shares of common stock at a cost of approximately $715 million. The number of common stock shares
outstanding as of May 4, 2023 was
14,452,474, not including the potentially dilutive effect of
unexercised warrant shares or unvested equity awards.
The timing and amount of share repurchases will continue to be
determined by the company's management based on its evaluation of
market conditions, the trading price of the stock, applicable legal
requirements, compliance with the provisions of the company's debt
agreements, and other factors.
2023 Guidance Adjustment and Performance Update
Alpha is reducing tax rate guidance for the full year 2023. The
new tax rate guidance range for the year is 12% to 17%, down from
the prior range of 15% to 20%.
As of April 27, 2023, Alpha has
committed and priced approximately 51% of its metallurgical coal
within the Met segment at an average price of $203.86 per ton and 75% of thermal coal in the
Met segment at an average expected price of $108.77 per ton. In the All Other category the
company is 100% committed and priced at an average price of
$88.74 per ton.
|
2023
Guidance
|
in millions of
tons
|
Low
|
High
|
Metallurgical
|
15.0
|
16.0
|
Thermal
|
1.4
|
1.8
|
Met
Segment
|
16.4
|
17.8
|
All Other
|
0.3
|
0.6
|
Total
Shipments
|
16.7
|
18.4
|
|
|
|
Committed/Priced1,2,3
|
Committed
|
Average
Price
|
Metallurgical -
Domestic
|
|
$193.26
|
Metallurgical -
Export
|
|
$220.89
|
Metallurgical
Total
|
51 %
|
$203.86
|
Thermal
|
75 %
|
$108.77
|
Met
Segment
|
53 %
|
$191.28
|
All Other
|
100 %
|
$88.74
|
|
|
|
Committed/Unpriced1,3
|
Committed
|
|
Metallurgical
Total
|
43 %
|
|
Thermal
|
— %
|
|
Met
Segment
|
39 %
|
|
All Other
|
— %
|
|
|
|
|
Costs per
ton4
|
Low
|
High
|
Met Segment
|
$106.00
|
$112.00
|
All Other
|
$87.00
|
$93.00
|
|
|
|
In millions
(except taxes)
|
Low
|
High
|
SG&A5
|
$59
|
$65
|
Idle Operations
Expense
|
$21
|
$31
|
Cash Interest
Expense
|
$2
|
$10
|
DD&A
|
$115
|
$135
|
Capital
Expenditures
|
$250
|
$280
|
Tax Rate
|
12 %
|
17 %
|
|
Notes:
|
1.
|
Based on committed and
priced coal shipments as of April 27, 2023. Committed percentage
based on the midpoint of shipment guidance range.
|
2.
|
Actual average per-ton
realizations on committed and priced tons recognized in future
periods may vary based on actual freight expense in future periods
relative to assumed freight expense embedded in projected average
per-ton realizations.
|
3.
|
Includes estimates of
future coal shipments based upon contract terms and anticipated
delivery schedules. Actual coal shipments may vary from these
estimates.
|
4.
|
Note: The Company is
unable to present a quantitative reconciliation of its
forward-looking non-GAAP cost of coal sales per ton sold financial
measures to the most directly comparable GAAP measures without
unreasonable efforts due to the inherent difficulty in forecasting
and quantifying with reasonable accuracy significant items required
for the reconciliation. The most directly comparable GAAP measure,
GAAP cost of sales, is not accessible without unreasonable efforts
on a forward-looking basis. The reconciling items include freight
and handling costs, which are a component of GAAP cost of sales.
Management is unable to predict without unreasonable efforts
freight and handling costs due to uncertainty as to the end market
and FOB point for uncommitted sales volumes and the final shipping
point for export shipments. These amounts have historically varied
and may continue to vary significantly from quarter to quarter and
material changes to these items could have a significant effect on
our future GAAP results.
|
5.
|
Excludes expenses
related to non-cash stock compensation and non-recurring
expenses.
|
Conference Call
The company plans to hold a conference call regarding its first
quarter 2023 results on May 8, 2023,
at 10:00 a.m. Eastern time. The
conference call will be available live on the investor section of
the company's website at https://alphametresources.com/investors.
Analysts who would like to participate in the conference call
should dial 877-407-0832 (domestic toll-free) or 201-689-8433
(international) approximately 15 minutes prior to start time.
About Alpha Metallurgical Resources
Alpha Metallurgical Resources (NYSE: AMR) is a Tennessee-based mining company with operations
across Virginia and West Virginia. With customers across the
globe, high-quality reserves and significant port capacity, Alpha
reliably supplies metallurgical products to the steel industry. For
more information, visit www.AlphaMetResources.com.
Forward-Looking Statements
This news release includes forward-looking
statements. These forward-looking statements are based on
Alpha's expectations and beliefs concerning future events and
involve risks and uncertainties that may cause actual results to
differ materially from current expectations. These factors are
difficult to predict accurately and may be beyond Alpha's
control. Forward-looking statements in this news release or
elsewhere speak only as of the date made. New uncertainties
and risks arise from time to time, and it is impossible for Alpha
to predict these events or how they may affect Alpha. Except
as required by law, Alpha has no duty to, and does not intend to,
update or revise the forward-looking statements in this news
release or elsewhere after the date this release is issued. In
light of these risks and uncertainties, investors should keep in
mind that results, events or developments discussed in any
forward-looking statement made in this news release may not
occur.
INVESTOR & MEDIA CONTACT: EMILY O'QUINN
InvestorRelations@AlphaMetResources.com
CorporateCommunications@AlphaMetResources.com
(423) 573-0369
FINANCIAL TABLES FOLLOW
Non-GAAP Financial Measures
The discussion below contains "non-GAAP financial measures."
These are financial measures that either exclude or include amounts
that are not excluded or included in the most directly comparable
measures calculated and presented in accordance with generally
accepted accounting principles in the
United States ("U.S. GAAP" or "GAAP"). Specifically, we make
use of the non-GAAP financial measures "Adjusted EBITDA," "non-GAAP
coal revenues," "non-GAAP cost of coal sales," "non-GAAP coal
margin," and "Adjusted cost of produced coal sold." We use Adjusted
EBITDA to measure the operating performance of our segments and
allocate resources to the segments. Adjusted EBITDA does not
purport to be an alternative to net income (loss) as a measure of
operating performance or any other measure of operating results or
liquidity presented in accordance with GAAP. We use non-GAAP coal
revenues to present coal revenues generated, excluding freight and
handling fulfillment revenues. Non-GAAP coal sales realization per
ton for our operations is calculated as non-GAAP coal revenues
divided by tons sold. We use non-GAAP cost of coal sales to adjust
cost of coal sales to remove freight and handling costs,
depreciation, depletion and amortization - production (excluding
the depreciation, depletion and amortization related to selling,
general and administrative functions), accretion on asset
retirement obligations, amortization of acquired intangibles, net,
and idled and closed mine costs. Non-GAAP cost of coal sales per
ton for our operations is calculated as non-GAAP cost of coal sales
divided by tons sold. Non-GAAP coal margin per ton for our coal
operations is calculated as non-GAAP coal sales realization per ton
for our coal operations less non-GAAP cost of coal sales per ton
for our coal operations. We also use Adjusted cost of produced coal
sold to distinguish the cost of captive produced coal from the
effects of purchased coal. The presentation of these measures
should not be considered in isolation, or as a substitute for
analysis of our results as reported under GAAP.
Management uses non-GAAP financial measures to supplement GAAP
results to provide a more complete understanding of the factors and
trends affecting the business than GAAP results alone. The
definition of these non-GAAP measures may be changed periodically
by management to adjust for significant items important to an
understanding of operating trends and to adjust for items that may
not reflect the trend of future results by excluding transactions
that are not indicative of our core operating performance.
Furthermore, analogous measures are used by industry analysts to
evaluate the Company's operating performance. Because not all
companies use identical calculations, the presentations of these
measures may not be comparable to other similarly titled measures
of other companies and can differ significantly from company to
company depending on long-term strategic decisions regarding
capital structure, the tax jurisdictions in which companies
operate, and capital investments.
Included below are reconciliations of non-GAAP financial
measures to GAAP financial measures.
ALPHA METALLURGICAL
RESOURCES, INC. AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
|
(Amounts in
thousands, except share and per share data)
|
|
|
Three Months Ended
March 31,
|
|
2023
|
|
2022
|
Revenues:
|
|
|
|
Coal
revenues
|
$
906,698
|
|
$
1,069,738
|
Other
revenues
|
4,537
|
|
2,226
|
Total
revenues
|
911,235
|
|
1,071,964
|
Costs and
expenses:
|
|
|
|
Cost of coal sales
(exclusive of items shown separately below)
|
539,137
|
|
555,342
|
Depreciation,
depletion and amortization
|
29,423
|
|
28,035
|
Accretion on asset
retirement obligations
|
6,377
|
|
5,954
|
Amortization of
acquired intangibles, net
|
2,197
|
|
5,748
|
Selling, general and
administrative expenses (exclusive of depreciation, depletion and
amortization shown separately above)
|
20,692
|
|
15,086
|
Total other operating
loss (income):
|
|
|
|
Mark-to-market
adjustment for acquisition-related obligations
|
—
|
|
9,361
|
Other
income
|
(1,092)
|
|
(628)
|
Total costs and
expenses
|
596,734
|
|
618,898
|
Income from
operations
|
314,501
|
|
453,066
|
Other (expense)
income:
|
|
|
|
Interest
expense
|
(1,720)
|
|
(13,083)
|
Interest
income
|
1,518
|
|
184
|
Equity loss in
affiliates
|
(1,748)
|
|
(1,361)
|
Miscellaneous income,
net
|
631
|
|
1,676
|
Total other expense,
net
|
(1,319)
|
|
(12,584)
|
Income before income
taxes
|
313,182
|
|
440,482
|
Income tax
expense
|
(42,411)
|
|
(39,591)
|
Net income
|
$
270,771
|
|
$
400,891
|
|
|
|
|
Basic income per common
share
|
$
17.74
|
|
$
21.58
|
Diluted income per
common share
|
$
17.01
|
|
$
20.52
|
|
|
|
|
Weighted average shares
– basic
|
15,266,895
|
|
18,574,026
|
Weighted average shares
– diluted
|
15,916,378
|
|
19,540,642
|
ALPHA METALLURGICAL
RESOURCES, INC. AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED BALANCE SHEETS (Unaudited)
|
(Amounts in
thousands, except share and per share data)
|
|
|
March 31,
2023
|
|
December 31,
2022
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
222,507
|
|
$
301,906
|
Short-term
investments
|
—
|
|
46,052
|
Trade accounts
receivable, net of allowance for doubtful accounts of $369 and $239
as of March 31, 2023 and December 31, 2022,
respectively
|
546,252
|
|
407,210
|
Inventories,
net
|
266,678
|
|
200,574
|
Short-term
deposits
|
6,602
|
|
84,748
|
Short-term restricted
cash
|
—
|
|
24,547
|
Prepaid expenses and
other current assets
|
50,448
|
|
49,384
|
Total current
assets
|
1,092,487
|
|
1,114,421
|
Property, plant, and
equipment, net of accumulated depreciation and amortization of
$503,403 and $491,186 as of March 31, 2023 and
December 31, 2022, respectively
|
486,721
|
|
442,645
|
Owned and leased
mineral rights, net of accumulated depletion and amortization of
$83,313 and $77,333 as of March 31, 2023 and December 31,
2022, respectively
|
458,191
|
|
451,062
|
Other acquired
intangibles, net of accumulated amortization of $43,236 and $53,719
as of March 31, 2023 and December 31, 2022,
respectively
|
52,905
|
|
55,102
|
Long-term restricted
investments
|
90,428
|
|
105,735
|
Long-term restricted
cash
|
50,931
|
|
28,941
|
Deferred income
taxes
|
10,497
|
|
11,378
|
Other non-current
assets
|
106,957
|
|
103,195
|
Total assets
|
$
2,349,117
|
|
$
2,312,479
|
Liabilities and
Stockholders' Equity
|
|
|
|
Current
liabilities:
|
|
|
|
Current portion of
long-term debt
|
$
3,562
|
|
$
3,078
|
Trade accounts
payable
|
122,738
|
|
106,037
|
Acquisition-related
obligations – current
|
381
|
|
28,254
|
Accrued expenses and
other current liabilities
|
189,927
|
|
265,256
|
Total current
liabilities
|
316,608
|
|
402,625
|
Long-term
debt
|
8,379
|
|
7,897
|
Workers' compensation
and black lung obligations
|
185,204
|
|
188,247
|
Pension
obligations
|
102,700
|
|
110,836
|
Asset retirement
obligations
|
144,851
|
|
142,048
|
Deferred income
taxes
|
24,286
|
|
10,874
|
Other non-current
liabilities
|
18,514
|
|
20,197
|
Total
liabilities
|
800,542
|
|
882,724
|
Commitments and
Contingencies
|
|
|
|
Stockholders'
Equity
|
|
|
|
Preferred stock - par
value $0.01, 5.0 million shares authorized, none issued
|
—
|
|
—
|
Common stock - par
value $0.01, 50.0 million shares authorized, 21.8 million issued
and 14.8 million outstanding at March 31, 2023 and 21.7
million issued and 15.5 million outstanding at December 31,
2022
|
218
|
|
217
|
Additional paid-in
capital
|
813,299
|
|
815,442
|
Accumulated other
comprehensive loss
|
(12,650)
|
|
(12,162)
|
Treasury stock, at
cost: 7.0 million shares at March 31, 2023 and 6.2 million
shares at December 31, 2022
|
(791,557)
|
|
(649,061)
|
Retained
earnings
|
1,539,265
|
|
1,275,319
|
Total stockholders'
equity
|
1,548,575
|
|
1,429,755
|
Total liabilities and
stockholders' equity
|
$
2,349,117
|
|
$
2,312,479
|
ALPHA METALLURGICAL
RESOURCES, INC. AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
|
(Amounts in
thousands)
|
|
|
Three Months Ended
March 31,
|
|
2023
|
|
2022
|
Operating
activities:
|
|
|
|
Net income
|
$
270,771
|
|
$
400,891
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
Depreciation,
depletion and amortization
|
29,423
|
|
28,035
|
Amortization of
acquired intangibles, net
|
2,197
|
|
5,748
|
Amortization of debt
issuance costs and accretion of debt discount
|
534
|
|
3,679
|
Mark-to-market
adjustment for acquisition-related obligations
|
—
|
|
9,361
|
Gain on disposal of
assets
|
(2,363)
|
|
(636)
|
Accretion on asset
retirement obligations
|
6,377
|
|
5,954
|
Employee benefit
plans, net
|
3,261
|
|
(174)
|
Deferred income
taxes
|
14,432
|
|
4,676
|
Stock-based
compensation
|
3,034
|
|
1,182
|
Equity loss in
affiliates
|
1,748
|
|
1,361
|
Other, net
|
126
|
|
135
|
Changes in operating
assets and liabilities
|
(152,153)
|
|
(124,087)
|
Net cash provided
by operating activities
|
177,387
|
|
336,125
|
Investing
activities:
|
|
|
|
Capital
expenditures
|
(74,248)
|
|
(28,146)
|
Proceeds on disposal
of assets
|
3,478
|
|
917
|
Cash paid for business
acquired
|
(11,919)
|
|
—
|
Purchases of
investment securities
|
(141,750)
|
|
(50)
|
Sales and maturities
of investment securities
|
204,660
|
|
28,438
|
Capital contributions
to equity affiliates
|
(8,124)
|
|
(3,468)
|
Other, net
|
12
|
|
(1,243)
|
Net cash used in
investing activities
|
(27,891)
|
|
(3,552)
|
Financing
activities:
|
|
|
|
Principal repayments
of long-term debt
|
(438)
|
|
(200,461)
|
Dividend and dividend
equivalents paid
|
(85,979)
|
|
—
|
Common stock
repurchases and related expenses
|
(144,919)
|
|
(21,844)
|
Proceeds from exercise
of warrants
|
222
|
|
2,257
|
Other, net
|
(338)
|
|
348
|
Net cash used in
financing activities
|
(231,452)
|
|
(219,700)
|
Net (decrease)
increase in cash and cash equivalents and restricted
cash
|
(81,956)
|
|
112,873
|
Cash and cash
equivalents and restricted cash at beginning of period
|
355,394
|
|
182,614
|
Cash and cash
equivalents and restricted cash at end of period
|
$
273,438
|
|
$
295,487
|
|
|
|
|
Supplemental
disclosure of noncash investing and financing
activities:
|
|
|
|
Financing leases and
capital financing - equipment
|
$
1,753
|
|
$
736
|
Accrued capital
expenditures
|
$
13,703
|
|
$
9,529
|
Accrued common stock
repurchases
|
$
5,995
|
|
$
1,996
|
Dividends
declared
|
$
6,825
|
|
$
—
|
The following table provides a reconciliation of cash and cash
equivalents and restricted cash reported within the Condensed
Consolidated Balance Sheets that sum to the total of the same such
amounts shown in the Condensed Consolidated Statements of Cash
Flows.
|
As of March
31,
|
|
2023
|
|
2022
|
Cash and cash
equivalents
|
$
222,507
|
|
$
159,455
|
Short-term restricted
cash
|
—
|
|
17,556
|
Long-term restricted
cash
|
50,931
|
|
118,476
|
Total cash and cash
equivalents and restricted cash shown in the Condensed Consolidated
Statements of Cash Flows
|
$
273,438
|
|
$
295,487
|
ALPHA METALLURGICAL
RESOURCES, INC. AND SUBSIDIARIES
|
ADJUSTED EBITDA
RECONCILIATION
|
(Amounts in
thousands)
|
|
|
Three Months
Ended
|
|
March 31,
2023
|
|
December 31,
2022
|
|
March 31,
2022
|
Net income
|
$
270,771
|
|
$
220,680
|
|
$
400,891
|
Interest
expense
|
1,720
|
|
1,747
|
|
13,083
|
Interest
income
|
(1,518)
|
|
(1,775)
|
|
(184)
|
Income tax expense
(benefit)
|
42,411
|
|
(7,748)
|
|
39,591
|
Depreciation, depletion
and amortization
|
29,423
|
|
23,930
|
|
28,035
|
Non-cash stock
compensation expense
|
3,034
|
|
3,381
|
|
1,182
|
Mark-to-market
adjustment - acquisition-related obligations
|
—
|
|
(1,735)
|
|
9,361
|
Accretion on asset
retirement obligations
|
6,377
|
|
5,943
|
|
5,954
|
Amortization of
acquired intangibles, net
|
2,197
|
|
3,460
|
|
5,748
|
Adjusted
EBITDA
|
$
354,415
|
|
$
247,883
|
|
$
503,661
|
ALPHA
METALLURGICAL RESOURCES, INC. AND SUBSIDIARIES
|
RESULTS OF
OPERATIONS
|
|
|
Three Months Ended
March 31, 2023
|
(In thousands,
except for per ton data)
|
Met
|
|
All
Other
|
|
Consolidated
|
Coal
revenues
|
$
887,007
|
|
$
19,691
|
|
$
906,698
|
Less: Freight and
handling fulfillment revenues
|
(106,252)
|
|
(225)
|
|
(106,477)
|
Non-GAAP Coal
revenues
|
$
780,755
|
|
$
19,466
|
|
$
800,221
|
Tons sold
|
3,737
|
|
178
|
|
3,915
|
Non-GAAP Coal sales
realization per ton
|
$
208.93
|
|
$
109.36
|
|
$
204.40
|
|
|
|
|
|
|
Cost of coal sales
(exclusive of items shown separately below)
|
$
522,998
|
|
$
16,139
|
|
$
539,137
|
Depreciation, depletion
and amortization - production (1)
|
28,879
|
|
258
|
|
29,137
|
Accretion on asset
retirement obligations
|
3,722
|
|
2,655
|
|
6,377
|
Amortization of
acquired intangibles, net
|
2,197
|
|
—
|
|
2,197
|
Total Cost of coal
sales
|
$
557,796
|
|
$
19,052
|
|
$
576,848
|
Less: Freight and
handling costs
|
(106,252)
|
|
(225)
|
|
(106,477)
|
Less:
Depreciation, depletion and amortization - production
(1)
|
(28,879)
|
|
(258)
|
|
(29,137)
|
Less: Accretion on
asset retirement obligations
|
(3,722)
|
|
(2,655)
|
|
(6,377)
|
Less: Amortization of
acquired intangibles, net
|
(2,197)
|
|
—
|
|
(2,197)
|
Less: Idled and closed
mine costs
|
(3,578)
|
|
(2,620)
|
|
(6,198)
|
Non-GAAP Cost of coal
sales
|
$
413,168
|
|
$
13,294
|
|
$
426,462
|
Tons sold
|
3,737
|
|
178
|
|
3,915
|
Non-GAAP Cost of coal
sales per ton
|
$
110.56
|
|
$
74.69
|
|
$
108.93
|
|
|
(1)
|
Depreciation, depletion
and amortization - production excludes the depreciation, depletion
and amortization related to selling, general and administrative
functions.
|
|
Three Months Ended
March 31, 2023
|
(In thousands,
except for per ton data)
|
Met
|
|
All
Other
|
|
Consolidated
|
Coal
revenues
|
$
887,007
|
|
$
19,691
|
|
$
906,698
|
Less: Total Cost of
coal sales (per table above)
|
(557,796)
|
|
(19,052)
|
|
(576,848)
|
GAAP Coal
margin
|
$
329,211
|
|
$
639
|
|
$
329,850
|
Tons sold
|
3,737
|
|
178
|
|
3,915
|
GAAP Coal margin per
ton
|
$
88.09
|
|
$
3.59
|
|
$
84.25
|
|
|
|
|
|
|
GAAP Coal
margin
|
$
329,211
|
|
$
639
|
|
$
329,850
|
Add: Depreciation,
depletion and amortization - production (1)
|
28,879
|
|
258
|
|
29,137
|
Add: Accretion on asset
retirement obligations
|
3,722
|
|
2,655
|
|
6,377
|
Add: Amortization of
acquired intangibles, net
|
2,197
|
|
—
|
|
2,197
|
Add: Idled and closed
mine costs
|
3,578
|
|
2,620
|
|
6,198
|
Non-GAAP Coal
margin
|
$
367,587
|
|
$
6,172
|
|
$
373,759
|
Tons sold
|
3,737
|
|
178
|
|
3,915
|
Non-GAAP Coal margin
per ton
|
$
98.36
|
|
$
34.67
|
|
$
95.47
|
|
|
(1)
|
Depreciation, depletion
and amortization - production excludes the depreciation, depletion
and amortization related to selling, general and administrative
functions.
|
|
Three Months Ended
December 31, 2022
|
(In thousands,
except for per ton data)
|
Met
|
|
All
Other
|
|
Consolidated
|
Coal
revenues
|
$
804,876
|
|
$
16,266
|
|
$
821,142
|
Less: Freight and
handling fulfillment revenues
|
(105,911)
|
|
1
|
|
(105,910)
|
Non-GAAP Coal
revenues
|
$
698,965
|
|
$
16,267
|
|
$
715,232
|
Tons sold
|
3,752
|
|
129
|
|
3,881
|
Non-GAAP Coal sales
realization per ton
|
$
186.29
|
|
$
126.10
|
|
$
184.29
|
|
|
|
|
|
|
Cost of coal sales
(exclusive of items shown separately below)
|
$
541,547
|
|
$
7,596
|
|
$
549,143
|
Depreciation, depletion
and amortization - production (1)
|
19,575
|
|
4,083
|
|
23,658
|
Accretion on asset
retirement obligations
|
3,412
|
|
2,531
|
|
5,943
|
Amortization of
acquired intangibles, net
|
2,517
|
|
943
|
|
3,460
|
Total Cost of coal
sales
|
$
567,051
|
|
$
15,153
|
|
$
582,204
|
Less: Freight and
handling costs
|
(105,911)
|
|
1
|
|
(105,910)
|
Less:
Depreciation, depletion and amortization - production
(1)
|
(19,575)
|
|
(4,083)
|
|
(23,658)
|
Less: Accretion on
asset retirement obligations
|
(3,412)
|
|
(2,531)
|
|
(5,943)
|
Less: Amortization of
acquired intangibles, net
|
(2,517)
|
|
(943)
|
|
(3,460)
|
Less: Idled and closed
mine costs
|
(11,754)
|
|
2,821
|
|
(8,933)
|
Non-GAAP Cost of coal
sales
|
$
423,882
|
|
$
10,418
|
|
$
434,300
|
Tons sold
|
3,752
|
|
129
|
|
3,881
|
Non-GAAP Cost of coal
sales per ton
|
$
112.97
|
|
$
80.76
|
|
$
111.90
|
|
|
(1)
|
Depreciation, depletion
and amortization - production excludes the depreciation, depletion
and amortization related to selling, general and administrative
functions.
|
|
Three Months Ended
December 31, 2022
|
(In thousands,
except for per ton data)
|
Met
|
|
All
Other
|
|
Consolidated
|
Coal
revenues
|
$
804,876
|
|
$
16,266
|
|
$
821,142
|
Less: Total Cost of
coal sales (per table above)
|
(567,051)
|
|
(15,153)
|
|
(582,204)
|
GAAP Coal
margin
|
$
237,825
|
|
$
1,113
|
|
$
238,938
|
Tons sold
|
3,752
|
|
129
|
|
3,881
|
GAAP Coal margin per
ton
|
$
63.39
|
|
$
8.63
|
|
$
61.57
|
|
|
|
|
|
|
GAAP Coal
margin
|
$
237,825
|
|
$
1,113
|
|
$
238,938
|
Add: Depreciation,
depletion and amortization - production (1)
|
19,575
|
|
4,083
|
|
23,658
|
Add: Accretion on asset
retirement obligations
|
3,412
|
|
2,531
|
|
5,943
|
Add: Amortization of
acquired intangibles, net
|
2,517
|
|
943
|
|
3,460
|
Add: Idled and closed
mine costs
|
11,754
|
|
(2,821)
|
|
8,933
|
Non-GAAP Coal
margin
|
$
275,083
|
|
$
5,849
|
|
$
280,932
|
Tons sold
|
3,752
|
|
129
|
|
3,881
|
Non-GAAP Coal margin
per ton
|
$
73.32
|
|
$
45.34
|
|
$
72.39
|
|
|
(1)
|
Depreciation, depletion
and amortization - production excludes the depreciation, depletion
and amortization related to selling, general and administrative
functions.
|
|
Three Months Ended
March 31, 2022
|
(In thousands,
except for per ton data)
|
Met
|
|
All
Other
|
|
Consolidated
|
Coal
revenues
|
$ 1,054,340
|
|
$
15,398
|
|
$ 1,069,738
|
Less: Freight and
handling fulfillment revenues
|
(144,025)
|
|
(18)
|
|
(144,043)
|
Non-GAAP Coal
revenues
|
$
910,315
|
|
$
15,380
|
|
$
925,695
|
Tons sold
|
3,780
|
|
268
|
|
4,048
|
Non-GAAP Coal sales
realization per ton
|
$
240.82
|
|
$
57.39
|
|
$
228.68
|
|
|
|
|
|
|
Cost of coal sales
(exclusive of items shown separately below)
|
$
539,282
|
|
$
16,060
|
|
$
555,342
|
Depreciation, depletion
and amortization - production (1)
|
27,060
|
|
797
|
|
27,857
|
Accretion on asset
retirement obligations
|
3,398
|
|
2,556
|
|
5,954
|
Amortization of
acquired intangibles, net
|
4,796
|
|
952
|
|
5,748
|
Total Cost of coal
sales
|
$
574,536
|
|
$
20,365
|
|
$
594,901
|
Less: Freight and
handling costs
|
(144,025)
|
|
(18)
|
|
(144,043)
|
Less:
Depreciation, depletion and amortization - production
(1)
|
(27,060)
|
|
(797)
|
|
(27,857)
|
Less: Accretion on
asset retirement obligations
|
(3,398)
|
|
(2,556)
|
|
(5,954)
|
Less: Amortization of
acquired intangibles, net
|
(4,796)
|
|
(952)
|
|
(5,748)
|
Less: Idled and closed
mine costs
|
(3,604)
|
|
(2,671)
|
|
(6,275)
|
Non-GAAP Cost of coal
sales
|
$
391,653
|
|
$
13,371
|
|
$
405,024
|
Tons sold
|
3,780
|
|
268
|
|
4,048
|
Non-GAAP Cost of coal
sales per ton
|
$
103.61
|
|
$
49.89
|
|
$
100.06
|
|
|
(1)
|
Depreciation, depletion
and amortization - production excludes the depreciation, depletion
and amortization related to selling, general and administrative
functions.
|
|
Three Months Ended
March 31, 2022
|
(In thousands,
except for per ton data)
|
Met
|
|
All
Other
|
|
Consolidated
|
Coal
revenues
|
$ 1,054,340
|
|
$
15,398
|
|
$ 1,069,738
|
Less: Total Cost of
coal sales (per table above)
|
(574,536)
|
|
(20,365)
|
|
(594,901)
|
GAAP Coal
margin
|
$
479,804
|
|
$
(4,967)
|
|
$
474,837
|
Tons sold
|
3,780
|
|
268
|
|
4,048
|
GAAP Coal margin per
ton
|
$
126.93
|
|
$
(18.53)
|
|
$
117.30
|
|
|
|
|
|
|
GAAP Coal
margin
|
$
479,804
|
|
$
(4,967)
|
|
$
474,837
|
Add: Depreciation,
depletion and amortization - production (1)
|
27,060
|
|
797
|
|
27,857
|
Add: Accretion on asset
retirement obligations
|
3,398
|
|
2,556
|
|
5,954
|
Add: Amortization of
acquired intangibles, net
|
4,796
|
|
952
|
|
5,748
|
Add: Idled and closed
mine costs
|
3,604
|
|
2,671
|
|
6,275
|
Non-GAAP Coal
margin
|
$
518,662
|
|
$
2,009
|
|
$
520,671
|
Tons sold
|
3,780
|
|
268
|
|
4,048
|
Non-GAAP Coal margin
per ton
|
$
137.21
|
|
$
7.50
|
|
$
128.62
|
|
|
(1)
|
Depreciation, depletion
and amortization - production excludes the depreciation, depletion
and amortization related to selling, general and administrative
functions.
|
|
Three Months Ended
March 31, 2023
|
(In thousands,
except for per ton data)
|
Tons
Sold
|
|
Coal
Revenues
|
|
Non-GAAP
Coal sales
realization per
ton
|
|
% of Met Tons
Sold
|
Export - other pricing
mechanisms
|
1,558
|
|
$
329,225
|
|
$
211.31
|
|
44 %
|
Domestic
|
1,070
|
|
206,385
|
|
$
192.88
|
|
30 %
|
Export - Australian
indexed
|
897
|
|
215,964
|
|
$
240.76
|
|
26 %
|
Total Met segment - met
coal
|
3,525
|
|
751,574
|
|
$
213.21
|
|
100 %
|
Met segment - thermal
coal
|
212
|
|
29,181
|
|
$
137.65
|
|
|
Total Met segment Coal
revenues
|
3,737
|
|
780,755
|
|
$
208.93
|
|
|
All Other Coal
revenues
|
178
|
|
19,466
|
|
$
109.36
|
|
|
Non-GAAP Coal
revenues
|
3,915
|
|
800,221
|
|
$
204.40
|
|
|
Add: Freight and
handling fulfillment revenues
|
—
|
|
106,477
|
|
|
|
|
Coal
revenues
|
3,915
|
|
$
906,698
|
|
|
|
|
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SOURCE Alpha Metallurgical Resources, Inc.