BRISTOL, Va., Oct. 30, 2014 /PRNewswire/ -- Alpha Natural
Resources, Inc. (NYSE: ANR), a leading U.S. coal producer, reported
a third quarter 2014 net loss of $185
million or $0.84 per diluted
share, compared with a net loss of $458
million or $2.07 per diluted
share in the third quarter of 2013. Excluding the items
described in "Reconciliation of Adjusted Net Loss to Net Loss," the
third quarter 2014 adjusted net loss was $118 million or $0.53 per diluted share compared with adjusted
net loss of $134 million or
$0.61 per diluted share in the third
quarter of 2013.
Earnings before interest, taxes, depreciation, depletion and
amortization (EBITDA) for the third quarter of 2014 was
$26 million, compared with an EBITDA
loss of $341 million in the year ago
period. Excluding the items described in our "Reconciliation
of EBITDA and Adjusted EBITDA to Net Loss," the third quarter 2014
Adjusted EBITDA was $54 million,
including a $16 million pre-tax gain
from the sale of 3.1 million Rice Energy shares, compared with
$33 million in the third quarter of
2013.
Quarterly
Financial & Operating Highlights
(millions, except
per-share and per-ton amounts)
|
|
|
Q3
2014
|
Q2
2014
|
Q3
2013
|
Coal
revenues
|
$920.8
|
$919.3
|
$1,028.8
|
|
|
|
|
Net
loss
|
($185.0)
|
($512.6)
|
($458.2)
|
|
|
|
|
Net loss per
diluted share
|
($0.84)
|
($2.32)
|
($2.07)
|
|
|
|
|
Adjusted net
loss1
|
($118.3)
|
($123.4)
|
($134.4)
|
|
|
|
|
Adjusted net loss
per diluted share1
|
($0.53)
|
($0.56)
|
($0.61)
|
|
|
|
|
EBITDA1
|
$26.3
|
($251.1)
|
($341.1)
|
|
|
|
|
Adjusted
EBITDA1
|
$53.7
|
$49.9
|
$33.4
|
|
|
|
|
Tons of coal
sold
|
21.2
|
19.9
|
21.8
|
|
|
|
|
Weighted average
coal margin per ton
|
$3.33
|
$4.90
|
$2.47
|
|
|
|
|
Adjusted weighted
average coal margin per ton1
|
$3.69
|
$4.09
|
$2.69
|
1. These are non-GAAP financial
measures. A reconciliation of adjusted net loss to net loss,
EBITDA and adjusted EBITDA to net loss, and adjusted cost of coal
sales per ton to cost of coal sales per ton are included in tables
accompanying the financial schedules. Adjusted weighted
average coal margin per ton is defined as the weighted average
total sales realization per ton, less the adjusted weighted average
total cost of coal sales per ton.
|
"While coal markets remained extremely challenging in the third
quarter, we continue to be proactive by thoughtfully rationalizing
our production base, reducing costs and maximizing efficiency. Our
continuing cost reduction efforts in the East and other corporate
actions are yielding strong results, including multi-year lows in
Eastern adjusted cost of coal sales at $61.69 per ton in the third quarter, allowing us
to reduce our Eastern cost of coal sales guidance for 2014 by
$2.00 to a midpoint of $63.00 per ton. Although costs in the PRB were
lower in the third quarter compared to the second quarter, they
once again came in above our expectations, primarily due to rail
underperformance, which continues to hinder shipment volumes," said
Kevin Crutchfield, chairman and
CEO.
The company remains focused on prudently managing its liquidity
and balance sheet during this difficult market period. Alpha
recently announced an amendment and extension of its senior secured
credit facility and established a new $200
million accounts receivable securitization facility, further
solidifying its liquidity position while improving future financial
flexibility. As a result of these efforts, Alpha maintained its
liquidity position of approximately $2.3
billion. In the third quarter the company sold 3.1
million shares of Rice Energy for approximately $82 million in cash, leaving Alpha with more than
6.4 million Rice Energy shares, valued at approximately
$170 million as of September 30, 2014.
In October, the company's subsidiary AMFIRE Mining Company, LLC
entered into an asset purchase agreement with Rosebud Mining
Company, a well-respected regional operator with synergies in both
geography and transportation, to divest substantially all of
AMFIRE's assets, located in Central
Pennsylvania, for total consideration of approximately
$86 million, including $75 million in cash and assumption of certain
liabilities. The transaction is expected to close by year
end. Total 2014 AMFIRE production through September was
approximately 1.7 million tons, including 1.2 million tons of
metallurgical coal.
The company's Marcellus gas joint venture with EDF Trading
Resources, LLC ("JV"), a fifty percent owner with Alpha, is
progressing well with a net acreage position to the JV totaling
more than 20,000 acres. During the third quarter, the
Pennsylvania Department of Environmental Protection issued two
drilling permits to the JV and construction has begun on an initial
pad location. Production from initial wells is expected in
early 2015 with at least four additional wells expected during the
year. The JV is currently evaluating additional pad
sites.
"While we are pleased with our operational and cost performance
in the third quarter, coal pricing remains highly challenging
across all regions in both domestic and export markets. For the
third consecutive quarter, the Asian hard coking coal benchmark
remained at near $120 per metric ton.
Thermal markets continue to experience soft prices, with API2 in
the low $70s per tonne – well below the break-even point for most
U.S. producers – and domestic Central
Appalachia thermal declining to the low $50s. Given the
continued price weakness in these two thermal markets, we are
continuing to assess our Central Appalachian thermal production for
2015, as indicated in our updated WARN notification press release
in late September. Northern
Appalachia has been the strongest thermal market in the
third quarter on a relative basis, with prices in the mid-$50s,
despite strong competition from the Illinois Basin and softening natural gas
prices," said Paul Vining, Alpha's
president.
As previously disclosed, the Emerald long-wall mine will operate
only through the second panel in district D. Emerald will be
conducting development work with minimal production during the
first quarter of 2015, likely resulting in higher overall Eastern
cost of coal sales per ton during that period. We now expect
Emerald to cease production near the end of 2015.
While Alpha continues to rationalize its cost base and manage
its balance sheet, the company has not diverted its focus from
'Running Right' as evidenced by the number of safety and
performance awards won by Alpha's affiliates in 2014. Specifically,
Paramont Coal Company's Deep Mine #37 and Dickenson-Russell Coal
Company's Roaring Fork #4 won the Mine Safety Award in the Large
Underground category; Twin Star Mining's Elk Creek Mine won the
Mine Safety Award in the Medium Surface category and received an
award for five years without time lost to injuries; Paramont Coal
Company's #88 Strip in Wise County
won a Mine Safety Award in the Large Surface category; and Pigeon
Creek Processing Corporation's Plant #1 was recognized with a
Virginia State Safety Award in the
Large Coal Processing Facility category. Finally, the National
Association of State Land Reclamationists (NASLR) presented
Paramont Coal Company's Red Onion Surface
Mine with its Annual Coal Mining Reclamation Award.
Financial Performance
- Total revenues in the third quarter of 2014 were $1.1 billion compared with $1.2 billion in the third quarter of 2013, and
coal revenues were $0.9 billion, down
from $1.0 billion in the year-ago
period. The decreases in total revenues and coal revenues
were primarily attributable to lower average realizations and lower
shipments of metallurgical and PRB steam coal. Freight and
handling revenues and other revenues were $112 million and $18
million, respectively, during the third quarter of 2014,
versus $136 million and $26 million, respectively, in the third quarter
of 2013.
During the third quarter of 2014, metallurgical coal shipments were
4.8 million tons, compared with 5.0 million tons in the third
quarter of 2013 and 4.5 million tons in the prior quarter of
2014. Alpha shipped 9.3 million tons of Powder River Basin
(PRB) coal during the quarter, compared with 10.1 million tons in
the year-ago period and 7.9 million tons in the prior
quarter. Eastern steam coal shipments were 7.2 million tons,
compared with 6.7 million tons in the year-ago period and 7.5
million tons in the prior quarter. The average per ton
realization on metallurgical coal shipments in the third quarter
was $82.45, down from $94.73 in the third quarter last year and
$86.31 in the prior quarter.
The average per-ton realization for PRB shipments was $11.81, compared with $12.58 in the third quarter last year and
$11.81 in the prior quarter.
The per-ton average realization for Eastern steam coal shipments
was $58.16, compared with
$63.21 in the year-ago period and
$58.53 in the prior quarter.
- Total costs and expenses during the third quarter of 2014 were
$1.2 billion, compared with
$1.7 billion in the third quarter of
2013 and $1.5 billion in the prior
quarter. Cost of coal sales was $0.9
billion, compared with $1.0
billion in the year-ago period and $0.8 billion in the prior quarter. The cost
of coal sales in the East averaged $62.32 per ton, compared with $74.93 in the third quarter last year and
$60.65 in the prior quarter.
Excluding $0.47 per ton employee
benefit related expenses and $0.16
per ton merger-related expenses, the adjusted cost of coal sales in
the East averaged $61.69 per ton,
compared with $74.52 in the third
quarter last year, which excluded a $0.41 per ton of merger-related expense, and
$62.01 in the second quarter of 2014,
which excluded a $1.36 per ton
benefit of merger-related items. The quarter-over-quarter
reduction in Eastern adjusted cost of coal sales per ton was
primarily driven by Alpha's cost reduction initiatives. The
cost of coal sales per ton for Alpha Coal West's PRB mines was
$11.32 during the third quarter of
2014, compared with $9.29 in the
third quarter of 2013 and $12.06 in
the prior quarter. The primary reason for the year-over-year
PRB cost increase was reduced shipment volumes, which were mainly
attributable to poor rail service at both our PRB mines.
- Selling, general and administrative (SG&A) expense in the
third quarter of 2014 was $35
million, compared with SG&A expense of $39 million in the third quarter of 2013.
Depreciation, depletion and amortization decreased to
$171 million during the third quarter
of 2014 from $196 million in the
year-ago period primarily due to the impact of production
curtailments and lower capital expenditures.
- Alpha recorded a net loss of $185
million, or $0.84 per diluted
share, during the third quarter of 2014, compared with a net loss
of $458 million, or $2.07 per diluted share, during the third quarter
of 2013. The net loss for the third quarter of 2013 includes
a non-cash goodwill impairment charge of approximately $253 million.
Excluding the items described in our "Reconciliation of Adjusted
Net Loss to Net Loss," the third quarter 2014 adjusted net loss was
$118 million, or $0.53 per diluted share, compared with adjusted
net loss of $134 million, or
$0.61 per diluted share, in the third
quarter of 2013.
- EBITDA was $26 million in the
third quarter of 2014, compared with an EBITDA loss of $341 million in the year-ago period.
Excluding the items described in the "Reconciliation of EBITDA and
Adjusted EBITDA to Net Loss," adjusted EBITDA was $54 million in the third quarter of 2014,
compared with $33 million in the
third quarter of 2013. Adjusted EBITDA for the third quarter
of 2013 excludes a non-cash goodwill impairment charge of
approximately $253 million.
Year-to-Date Results
- For the first nine months of 2014, Alpha reported total
revenues of $3.2 billion, including
$2.8 billion in coal revenues,
compared with total revenues of $3.9
billion and coal revenues of $3.3
billion during the first nine months of 2013. The
year-over-year decreases in both total and coal revenues are
primarily attributable to lower average realizations and lower
shipments of metallurgical and PRB steam coal.
- During the first nine months of 2014, Alpha's coal shipments
totaled 62.5 million tons, compared with 66.3 million tons in the
year-ago period. Metallurgical coal shipments were 13.7
million tons for the first nine months of 2014, compared with 15.7
million tons shipped during the same period a year ago.
Shipments of PRB and Eastern steam coal were 26.6 million tons and
22.3 million tons, respectively, during the first nine months of
2014, compared with 28.8 million tons and 21.8 million tons,
respectively, during the first nine months of 2013. The
year-over-year decrease in shipments of PRB coal reflects
principally poor rail performance, while the year-over year
decrease in metallurgical coal shipments is primarily driven by
weak market conditions and mine idlings.
- For the first nine months of 2014, the company-wide average
realization was $44.65 per ton and
the adjusted average cost of coal sales was $41.00 per ton, resulting in a $3.65 per ton, or 8.2 percent, adjusted coal
margin. By comparison, company-wide average realization in
the first nine months of 2013 was $49.65 per ton and the adjusted average cost of
coal sales was $45.37 per ton,
resulting in a $4.28 per ton, or 8.6
percent, adjusted coal margin. The decrease in adjusted coal
margin per ton was primarily attributable to lower per ton
realizations across all of Alpha's shipments, including Eastern
metallurgical coal, Eastern steam coal and PRB coal, partly offset
by lower Eastern adjusted costs of coal sales per ton.
Year-to-date 2014 weighted average coal margin per ton was
$3.78 or 8.5 percent with an average
cost of coal sales of $40.87 per
ton. Cost of coal sales was $2.6
billion for the first nine months of 2014, compared with
$3.1 billion in the year-ago
period.
- For the first nine months of 2014, Alpha recorded a net loss of
$753 million or $3.40 per diluted share, compared with a net loss
of $755 million or $3.42 per diluted share during the same period a
year ago. Excluding the various items detailed in the
attached "Reconciliation of Adjusted Loss to Net Loss," Alpha's
adjusted net loss was $226 million or
$1.02 per diluted share for the first
nine months of 2014, compared with an adjusted net loss of
$360 million or $1.63 per diluted share for the first nine months
of 2013. EBITDA for year-to-date 2014 was $40 million and Adjusted EBITDA, which excludes
the various items detailed in the attached "Reconciliation of
EBITDA and Adjusted EBITDA to Net Loss," was $393 million, compared with an EBITDA loss and
Adjusted EBITDA of $233 million and
$227 million, respectively, during
the first nine months of 2013. EBITDA and Adjusted EBITDA for
the year-to-date 2014 period includes a pre-tax gain of
approximately $250 million from the
exchange of the Alpha Shale joint venture with Rice Energy and a
pre-tax gain of approximately $16
million from the sale of 3.1 million shares of Rice
Energy. EBITDA for the first nine months of 2013 and 2014
includes a non-cash goodwill impairment charge of approximately
$253 million and $309 million, respectively.
Liquidity and Capital Resources
Cash provided by operating activities for the quarter ended
September 30, 2014 was $34 million, compared with cash provided by
operating activities of $111 million
for the third quarter of 2013. Capital expenditures for the
third quarter of 2014 were $45
million, compared with $56
million in the third quarter of 2013. For the first
nine months of 2014, cash used in operating activities totaled
$237 million, including $195 million in payments related to the
shareholder class action settlement, net of insurance recoveries of
$70 million, compared to cash
provided by operating activities of $179
million in the same period a year ago.
Alpha expects to receive $75
million in cash at the AMFIRE transaction close, which is
anticipated by year end.
As of the end of the third quarter of 2014, Alpha had total
liquidity of approximately $2.3
billion, consisting of cash, cash equivalents and marketable
securities of more than $1.3 billion,
which includes approximately 6.4 million shares of Rice Energy
valued at approximately $170 million,
and more than $0.9 billion available
under the Company's secured credit and accounts receivable
securitization facilities. Rice Energy shares held by Alpha
are subject to customary lock-up provisions which expire on
November 11, 2014, after which we may
consider a potential sale of some or all of these shares.
Total long-term debt, net of debt discounts, and including the
current portion of long-term debt as of September 30, 2014, was approximately
$3.9 billion, including approximately
$154 million of senior convertible
notes maturing in 2015.
Market Overview
Metallurgical Coal
The global seaborne metallurgical coal market has shown no
meaningful improvement over the last several months and continues
to exhibit dynamics of an oversupplied market. The Asian hard
coking coal benchmark remained at approximately $120 per metric tonne for the third consecutive
quarter, with spot assessments measured in the range of
$110 – $115 per metric tonne over the past several
months.
Decelerating growth in steel demand in China, coupled with increases in Australian
metallurgical coal production continue to cause an oversupplied
seaborne metallurgical coal market. The World Steel Association
(WSA) recently lowered its global apparent steel usage (ASU) growth
forecast for 2015 to 2.0 percent from 3.3 percent, with Chinese ASU
growth forecast dropping from 2.7 percent to 0.8 percent.
Furthermore, Chinese metallurgical coal imports continued to
decline significantly in 2014 to an annualized rate of
approximately 60 million tonnes, compared to approximately 75
million tonnes in 2013. Australian year-to-date exports are
up 12 percent, or 13 million tonnes, to 120 million tonnes through
August.
Announced cuts to global metallurgical coal production through
production curtailments and mine idlings are in the 25 million
tonne range with additional production cuts likely as current
prices do not allow a return for many of the global producers.
North American production cuts account for approximately 15 million
tonnes, or nearly 60 percent of announced global cuts to date. As
stated on our second quarter earnings conference call, we believe
many of these announced reductions have not yet taken full effect
as certain mines have yet to idle or are selling their remaining
inventory.
Thermal Coal
Recent price trends suggest that the thermal coal market will
remain weak into early 2015. Although domestic utility inventories
remain at historically low levels, softer natural gas prices,
increased imports of thermal coal and declining usage of thermal
coal by power plants in response to EPA regulations have
contributed to a continued weak pricing and demand environment.
Rail underperformance continues to hinder shipping volumes
across all regions, particularly in the PRB. Utility inventory
levels at the end of September 2014
were at approximately 45 days of coal burn compared to a five-year
average of approximately 65 days and 45 days of burn as of the end
of August 2014.
While pricing in Northern
Appalachia (NAPP) has held up better than in other regions,
it is still down over the past few months. Increased competition
from the Illinois Basin, the
threat of increased production from competing mines, and natural
gas prices retreating to the high $3
per MMBtu range with large basis differentials have all contributed
to continued soft market conditions in NAPP. Utility inventories in
NAPP stood at roughly 62 days of coal burn at the end of
September 2014, compared to
approximately 56 days in August 2014
and five-year average of 61 days.
Utility stockpiles in Central
Appalachia (CAPP) at the end of September 2014 are well below normal five-year
average burn levels, at approximately 77 days, up from 73 days at
the end of August 2014, but down
significantly from roughly 120 days a year ago. Despite this, we
continue to see no demonstrated sense of urgency from the
utilities, due in part to mild summer weather, lackluster demand
and strong natural gas injections over the past several months.
The seaborne market is equally uninspiring. API2 spot
pricing weakened further from roughly $76 per tonne in the prior quarter to
approximately $73 per tonne currently
and in line with 2015 calendar year pricing - well below the
break-even point for the majority of U.S. producers.
2014 and 2015 Outlook
We are increasing our 2014 shipment guidance for Eastern
metallurgical and Eastern steam coals while maintaining our PRB
guidance. We now expect to ship between 79 and 86 million
tons, including 17 to 19 million tons of Eastern metallurgical
coal, 28 to 30 million tons of Eastern steam coal, and 34 to 37
million tons of Western steam coal. The increase in expected
shipment volumes of Eastern metallurgical coal is principally due
to a shift of crossover coals into the metallurgical markets,
increased use of purchased coal in our sales mix and extension of
the WARN notices at several mines. We have committed a total
of approximately 56 million tons for 2015, consisting of more than
eight million tons of metallurgical coal, more than 16 million tons
of Central and Northern
Appalachian coal and nearly 31 million tons of PRB
coal. As of October 21,
2014, 100 percent of the midpoint of anticipated 2014
metallurgical coal shipments was committed and priced at an average
expected per ton realization of $85.71. Based on the midpoint of guidance,
99 percent of anticipated 2014 Eastern steam coal shipments were
committed and priced at an average expected per ton realization of
$58.03, and 100 percent of the
midpoint of anticipated 2014 PRB shipments was committed and priced
at an average expected per ton realization of $11.99. Alpha's 2014 guidance for its
Eastern adjusted cost of coal sales per ton is now $62.00 to $64.00, while Western cost of coal
sales per ton is now at $11.00 to
$11.50. Guidance for 2014 capital expenditures remains
at $225 million to $275
million. Based on preliminary estimates, we expect
2015 capital expenditures to range from $275
million to $350 million. The increase in 2015 capital
expenditures relative to 2014 is primarily due to anticipated
regulatory and environmental investments as well as incremental
equipment rebuild expenditures. SG&A guidance for 2014, which
excludes merger related expenses, is now $130 million to $140 million. The company's
2014 depletion, depreciation and amortization expense is unchanged
at $700 million to $800 million.
Interest expense guidance is increased slightly to $275 million to $290 million. Approximately
$200 million to $210 million of this
interest expense is cash interest. We expect 2015 interest
expense and cash paid for interest to be $310 million to $330 million and $230 million to $245 million, respectively.
Guidance
(in millions, except
per ton and percentage amounts)
|
|
|
2014
|
Average per Ton
Sales Realization on Committed
and Priced Coal Shipments1,2,3
|
|
West
|
$11.99
|
Eastern Steam
|
$58.03
|
Eastern Metallurgical
|
$85.71
|
Coal Shipments
(tons)3
|
79 – 86
|
West
|
34 – 37
|
Eastern Steam
|
28 – 30
|
Eastern Metallurgical
|
17 – 19
|
Committed and
Priced (%)3,4
|
100%
|
West
|
100%
|
Eastern Steam
|
99%
|
Eastern Metallurgical
|
100%
|
Committed and
Unpriced (%)3,4
|
0%
|
West
|
0%
|
Eastern Steam
|
1%
|
Eastern Metallurgical
|
0%
|
West – Adjusted
Cost of Coal Sales per Ton5
|
$11.00 –
$11.50
|
East – Adjusted
Cost of Coal Sales per Ton5
|
$62.00 –
$64.00
|
Selling, General
& Administrative Expense5
|
$130 –
$140
|
Depletion,
Depreciation & Amortization
|
$700 –
$800
|
Interest
Expense
|
$275 –
$290
|
Cash Paid for
Interest
|
$200 –
$210
|
Capital
Expenditures6
|
$225 –
$275
|
NOTES:
- Based on committed and priced coal shipments as of October 21, 2014.
- 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.
- Contain estimates of future coal shipments based upon contract
terms and anticipated delivery schedules. Actual coal
shipments may vary from these estimates.
- As of October 21, 2014, compared
with the midpoint of shipment guidance range.
- Actual results may be adjusted for various items, such as
merger-related expenses, that cannot reasonably be predicted.
- Includes the fourth of five annual bonus bid payments on the
Federal Lease by Application for the Belle Ayr mine of $42 million.
About Alpha Natural Resources
Alpha Natural Resources
is one of the largest and most regionally diversified coal
suppliers in the United States.
With affiliate mining operations in Virginia, West
Virginia, Kentucky,
Pennsylvania and Wyoming, Alpha supplies metallurgical coal to
the steel industry and thermal coal to generate power to customers
on five continents. Consistent with its Running Right
process, Alpha is committed to being a leader in mine safety and an
environmental steward in the communities where its affiliates
operate. For more information, visit Alpha's website at
www.alphanr.com.
Forward Looking Statements
This news release includes
forward-looking statements as defined in the Private Securities
Litigation Reform Act of 1995. 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.
The following factors are among those that may cause actual results
to differ materially from our forward-looking statements:
- our liquidity, results of operations and financial
condition;
- sustained depressed levels or further declines in coal
prices;
- worldwide market demand for coal, electricity and steel,
including demand for U.S. coal exports;
- utilities switching to alternative energy sources such as
natural gas, renewables and coal from basins where we do not
operate;
- reductions or increases in customer coal inventories and the
timing of those changes;
- our production capabilities and costs;
- inherent risks of coal mining beyond our control, and our
ability to utilize our coal assets fully and replace reserves as
they are depleted;
- changes in environmental laws and regulations, including those
directly affecting our coal mining and production, and those
affecting our customers' coal usage, including potential climate
change initiatives;
- changes in safety and health laws and regulations and their
implementation, and the ability to comply with those changes;
- competition in coal markets;
- future legislation, regulatory and court decisions and changes
in regulations, governmental policies or taxes or changes in
interpretation thereof;
- global economic, capital market or political conditions,
including a prolonged economic downturn in the markets in which we
operate and disruptions in worldwide financial markets;
- the outcome of pending or potential litigation or governmental
investigations;
- our relationships with, and other conditions affecting, our
customers, including the inability to collect payments from our
customers if their creditworthiness declines;
- changes in, renewal or acquisition of, terms of and performance
of customers under coal supply arrangements and the refusal by our
customers to receive coal under agreed contract terms;
- our ability to obtain, maintain or renew any necessary permits
or rights, and our ability to mine properties due to defects in
title on leasehold interests;
- attracting and retaining key personnel and other employee
workforce factors, such as labor relations;
- the geological characteristics of the Powder River Basin,
Central and Northern Appalachian
coal reserves;
- funding for and changes in postretirement benefit obligations,
pension obligations, including multi-employer pension plans, and
federal and state black lung obligations;
- cybersecurity attacks or failures, threats to physical
security, extreme weather conditions or other natural
disasters;
- increased costs and obligations potentially arising from the
Patient Protection and Affordable Care Act;
- reclamation and mine closure obligations;
- our assumptions concerning economically recoverable coal
reserve estimates;
- our ability to negotiate new United Mine Workers of America
("UMWA") wage agreements on terms acceptable to us, increased
unionization of our workforce in the future, and any strikes by our
workforce;
- disruptions in delivery or changes in pricing from third party
vendors of key equipment and materials that are necessary for our
operations, such as diesel fuel, steel products, explosives and
tires;
- inflationary pressures on supplies and labor and significant or
rapid increases in commodity prices;
- railroad, barge, truck and other transportation availability,
performance and costs;
- disruption in third party coal supplies;
- our ability to integrate successfully operations that we may
acquire or develop in the future, or the risk that any such
integration could be more difficult, time-consuming or costly than
expected;
- the consummation of financing transactions, acquisitions or
dispositions and the related effects on our business and financial
position;
- indemnification of certain obligations not being met;
- long-lived asset impairment charges;
- fair value of derivative instruments not accounted for as
hedges that are being marked to market;
- our substantial indebtedness and potential future
indebtedness;
- restrictive covenants and other terms in our secured credit
facility and the indentures governing our outstanding debt
securities;
- our ability to obtain or renew surety bonds on acceptable terms
or maintain self-bonding status;
- certain terms of our outstanding debt securities, including
conversions of some of our convertible senior debt securities, that
may adversely impact our liquidity; and
- other factors, including the other factors discussed in the
"Management's Discussion and Analysis of Financial Condition and
Results of Operations", and "Risk Factors" sections of our Annual
Report on Form 10-K for the year ended December 31, 2013 and Quarterly Reports on Form
10-Q for the quarters ended March 31,
2014 and June 30, 2014.
These and other risks and uncertainties are discussed in greater
detail in Alpha's Annual Reports on Form 10-K, Quarterly Reports on
Form 10-Q, and other documents filed with the Securities and
Exchange Commission. 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
the Company. Alpha has no duty to, and does not intend to,
update or revise the forward-looking statements in this news
release after the date it is issued. In light of these
risks and uncertainties, investors should keep in mind that the
results, events or developments disclosed in any forward-looking
statement made in this news release may not occur.
FINANCIAL TABLES FOLLOW
Use of Non-GAAP Measures
In addition to the results
prepared in accordance with generally accepted accounting
principles in the United States
(GAAP) provided throughout this press release, Alpha has presented
the following non-GAAP financial measures, which management uses to
gauge operating performance: EBITDA, adjusted EBITDA, adjusted net
income (loss), adjusted diluted income (loss) per common share,
adjusted cost of coal sales per ton, adjusted coal margin per ton,
and adjusted weighted average coal margin per ton.
These non-GAAP financial measures exclude various items detailed in
the attached "Reconciliation of EBITDA and Adjusted EBITDA to Net
Loss" and "Reconciliation of Adjusted Net Loss to Net
Loss."
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. These
measures are not intended to replace financial performance measures
determined in accordance with GAAP. Rather, they are presented as
supplemental measures of the Company's performance that management
finds useful in assessing the company's financial performance and
believes are useful to securities analysts, investors and others in
assessing the Company's performance over time. Moreover,
these measures are not calculated identically by all companies and
therefore may not be comparable to similarly titled measures used
by other companies.
Alpha Natural
Resources, Inc. and Subsidiaries
|
Condensed
Consolidated Statements of Operations
|
(In Thousands
Except Share and Per Share Data)
|
(Unaudited)
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2014
|
2013
|
|
2014
|
2013
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
Coal
revenues
|
$
920,833
|
$
1,028,847
|
|
$
2,792,906
|
$
3,292,412
|
Freight
and handling revenues
|
111,816
|
135,931
|
|
362,356
|
448,316
|
Other
revenues
|
17,943
|
26,316
|
|
61,201
|
119,080
|
Total
revenues
|
1,050,592
|
1,191,094
|
|
3,216,463
|
3,859,808
|
|
|
|
|
|
|
Costs and
expenses:
|
|
|
|
|
|
Cost of
coal sales (exclusive of items shown separately below)
|
864,998
|
988,995
|
|
2,589,530
|
3,082,330
|
Freight
and handling costs
|
111,816
|
135,931
|
|
362,356
|
448,316
|
Other
expenses
|
17,988
|
120,698
|
|
39,873
|
155,479
|
Depreciation, depletion and amortization
|
170,895
|
196,292
|
|
562,262
|
650,021
|
Amortization of acquired intangibles, net
|
9,166
|
2,748
|
|
27,909
|
908
|
Selling,
general and administrative expenses (exclusive of
depreciation,
|
|
|
|
|
|
depletion and
amortization shown separately above)
|
34,798
|
38,899
|
|
119,752
|
120,664
|
Asset
impairment and restructuring
|
11,544
|
2,017
|
|
23,633
|
24,358
|
Goodwill
impairment
|
-
|
253,102
|
|
308,651
|
253,102
|
|
|
|
|
|
|
Total costs and
expenses
|
1,221,205
|
1,738,682
|
|
4,033,966
|
4,735,178
|
|
|
|
|
|
|
Loss from
operations
|
(170,613)
|
(547,588)
|
|
(817,503)
|
(875,370)
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
|
Interest
expense
|
(75,688)
|
(62,233)
|
|
(211,662)
|
(182,587)
|
Interest
income
|
574
|
1,008
|
|
1,730
|
3,133
|
Gain on sale of
marketable equity securities
|
16,435
|
-
|
|
16,435
|
-
|
Gain (loss) on early
extinguishment of debt
|
-
|
158
|
|
(2,022)
|
(33,039)
|
Gain on
exchange of equity-method investment
|
-
|
-
|
|
250,331
|
-
|
Miscellaneous income, net
|
379
|
7,277
|
|
2,493
|
24,131
|
Total other income
(expense), net
|
(58,300)
|
(53,790)
|
|
57,305
|
(188,362)
|
|
|
|
|
|
|
Loss before income
taxes
|
(228,913)
|
(601,378)
|
|
(760,198)
|
(1,063,732)
|
Income tax
benefit
|
43,938
|
143,137
|
|
6,898
|
309,022
|
Net loss
|
$
(184,975)
|
$
(458,241)
|
|
$
(753,300)
|
$
(754,710)
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss per common
share:
|
|
|
|
|
|
Basic
loss per common share:
|
$
(0.84)
|
$
(2.07)
|
|
$
(3.40)
|
$
(3.42)
|
Diluted
loss per common share:
|
$
(0.84)
|
$
(2.07)
|
|
$
(3.40)
|
$
(3.42)
|
|
|
|
|
|
|
Weighted average
shares outstanding:
|
|
|
|
|
|
Weighted
average shares--basic
|
221,491,811
|
220,960,449
|
|
221,342,088
|
220,850,020
|
Weighted
average shares--diluted
|
221,491,811
|
220,960,449
|
|
221,342,088
|
220,850,020
|
|
|
|
|
|
|
|
|
|
|
|
|
This information is
intended to be reviewed in conjunction with the company's filings
with the U.S. Securities and Exchange Commission.
|
|
Alpha Natural
Resources, Inc. and Subsidiaries
|
Supplemental
Sales, Operations and Financial Data
|
(In Thousands,
Except Per Ton and Percentage Data)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months Ended
September 30,
|
|
September 30,
2014
|
June 30,
2014
|
September 30,
2013
|
|
2014
|
2013
|
|
|
|
|
|
|
|
Tons sold
(1):
|
|
|
|
|
|
|
Powder
River Basin
|
9,280
|
7,908
|
10,087
|
|
26,635
|
28,825
|
Eastern
steam
|
7,183
|
7,486
|
6,726
|
|
22,254
|
21,779
|
Eastern
metallurgical
|
4,773
|
4,492
|
5,034
|
|
13,656
|
15,705
|
Total
|
21,236
|
19,886
|
21,847
|
|
62,545
|
66,309
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average realized
price per ton sold (2)(7):
|
|
|
|
|
|
|
Powder
River Basin
|
$
11.81
|
$
11.81
|
$
12.58
|
|
$
11.97
|
$
12.67
|
Eastern
steam
|
$
58.16
|
$
58.53
|
$
63.21
|
|
$
58.32
|
$
62.51
|
Eastern
metallurgical
|
$
82.45
|
$
86.31
|
$
94.73
|
|
$
86.14
|
$
99.70
|
Weighted average
total
|
$
43.36
|
$
46.23
|
$
47.09
|
|
$
44.65
|
$
49.65
|
|
|
|
|
|
|
|
Coal
revenues:
|
|
|
|
|
|
|
Powder
River Basin
|
$
109,602
|
$
93,391
|
$
126,865
|
|
$
318,778
|
$
365,188
|
Eastern
steam
|
417,759
|
438,144
|
425,097
|
|
1,297,764
|
1,361,387
|
Eastern
metallurgical
|
393,472
|
387,718
|
476,885
|
|
1,176,364
|
1,565,837
|
Total coal
revenues
|
$
920,833
|
$
919,253
|
$
1,028,847
|
|
$
2,792,906
|
$
3,292,412
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted cost of coal
sales per ton (3)(7)(8)(11):
|
|
|
|
|
|
|
Powder
River Basin
|
$
11.32
|
$
12.06
|
$
9.29
|
|
$
11.15
|
$
9.79
|
East
(4)
|
$
61.69
|
$
62.01
|
$
74.52
|
|
$
63.14
|
$
72.73
|
Adjusted weighted
average total
|
$
39.67
|
$
42.14
|
$
44.40
|
|
$
41.00
|
$
45.37
|
|
|
|
|
|
|
|
Adjusted weighted
average coal margin per ton (9)
|
$
3.69
|
$
4.09
|
$
2.69
|
|
$
3.65
|
$
4.28
|
Adjusted weighted
average coal margin percentage (10)
|
8.5%
|
8.8%
|
5.7%
|
|
8.2%
|
8.6%
|
|
|
|
|
|
|
|
Cost of coal sales
per ton (3)(7)(11):
|
|
|
|
|
|
|
Powder
River Basin
|
$
11.32
|
$
12.06
|
$
9.29
|
|
$
11.15
|
$
9.79
|
East
(4)
|
$
62.32
|
$
60.65
|
$
74.93
|
|
$
62.91
|
$
73.60
|
Weighted average
total
|
$
40.03
|
$
41.33
|
$
44.62
|
|
$
40.87
|
$
45.86
|
|
|
|
|
|
|
|
Weighted average coal
margin per ton (5)
|
$
3.33
|
$
4.90
|
$
2.47
|
|
$
3.78
|
$
3.79
|
Weighted average coal
margin percentage (6)
|
7.7%
|
10.6%
|
5.2%
|
|
8.5%
|
7.6%
|
|
|
|
|
|
|
|
Net cash (used in)
provided by operating activities
|
$
34,296
|
$
(217,048)
|
$
111,083
|
|
$
(236,713)
|
$
178,579
|
Capital
expenditures
|
$
45,341
|
$
43,115
|
$
56,123
|
|
$
128,174
|
$
163,129
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Stated in
thousands of short tons.
|
|
|
|
|
|
(2) Coal revenues
divided by tons sold. This statistic is stated as free on board
(FOB) at the processing plant.
|
(3) Cost of coal
sales divided by tons sold. The cost of coal sales per ton only
includes costs in our Eastern
and Western Coal Operations.
|
(4) East includes the
Company's operations in Central Appalachia (CAPP) and Northern
Appalachia (NAPP).
|
(5) Weighted average
total sales realization per ton less weighted average total cost of
coal sales per ton.
|
(6) Weighted average
coal margin per ton divided by weighted average total sales
realization per ton.
|
(7) Amounts per ton
calculated based on unrounded revenues, cost of coal sales and tons
sold.
|
(8) For the three
months ended September 30, 2014, June 30, 2014, and September 30,
2013, and for the nine
months ended September 30, 2014 and September 30, 2013, adjusted
cost of coal sales per ton for East includes
adjustments to exclude the impact of certain charges set forth in
the table below.
|
(9) Weighted average
total sales realization per ton less adjusted weighted average
total cost of coal sales per ton.
|
(10) Adjusted
weighted average coal margin per ton divided by weighted average
total sales realization per ton.
|
(11) Adjusted cost of
coal sales per ton for our Eastern Operations reconciled to their
unadjusted amounts is as
follows:
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Nine months
ended
|
|
September 30,
2014
|
June 30,
2014
|
September 30,
2013
|
|
September 30,
2014
|
September 30,
2013
|
Cost of coal sales
per ton-East
|
$
62.32
|
$
60.65
|
$
74.93
|
|
$
62.91
|
$
73.60
|
Impact of provision
for regulatory costs
|
-
|
-
|
-
|
|
-
|
(0.62)
|
Impact of employee
benefit related expenses
|
(0.47)
|
-
|
-
|
|
(0.16)
|
-
|
Impact of
merger-related expenses
|
(0.16)
|
1.36
|
(0.41)
|
|
0.39
|
(0.25)
|
Adjusted cost of coal
sales per ton-East
|
$
61.69
|
$
62.01
|
$
74.52
|
|
$
63.14
|
$
72.73
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
This information is
intended to be reviewed in conjunction with the company's filings
with the U.S. Securities and
Exchange Commission.
|
Alpha Natural
Resources, Inc. and Subsidiaries
|
Condensed
Consolidated Balance Sheets and Supplemental Liquidity
Data
|
(In
Thousands)
|
(Unaudited)
|
|
|
|
|
|
|
September
30, 2014
|
December 31,
2013
|
|
|
|
|
Cash and cash
equivalents
|
$
809,411
|
$
619,644
|
Trade accounts
receivable, net
|
317,684
|
287,655
|
Inventories,
net
|
305,285
|
304,863
|
Short-term marketable
securities
|
374,528
|
337,069
|
Prepaid expenses and
other current assets
|
264,425
|
439,193
|
Total current
assets
|
2,071,333
|
1,988,424
|
Property, equipment
and mine development costs, net
|
1,528,163
|
1,798,648
|
Owned and leased
mineral rights and land, net
|
6,984,875
|
7,157,506
|
Goodwill,
net
|
-
|
308,651
|
Long-term marketable
securities
|
170,479
|
-
|
Other non-current
assets
|
437,975
|
546,029
|
Total
assets
|
$
11,192,825
|
$
11,799,258
|
|
|
|
|
Current portion of
long-term debt
|
$
176,945
|
$
29,169
|
Trade accounts
payable
|
245,311
|
234,951
|
Accrued expenses and
other current liabilities
|
703,309
|
978,695
|
Total current
liabilities
|
1,125,565
|
1,242,815
|
Long-term
debt
|
3,714,976
|
3,398,434
|
Pension and
postretirement medical benefit obligations
|
1,024,896
|
990,124
|
Asset retirement
obligations
|
723,479
|
728,575
|
Deferred income
taxes
|
828,070
|
901,552
|
Other non-current
liabilities
|
455,296
|
465,892
|
Total
liabilities
|
7,872,282
|
7,727,392
|
|
|
|
|
Total stockholders'
equity
|
3,320,543
|
4,071,866
|
Total liabilities and
stockholders' equity
|
$
11,192,825
|
$
11,799,258
|
|
|
|
|
|
|
As
of
|
|
|
September
30, 2014
|
December 31,
2013
|
Liquidity ($ in
000's):
|
|
|
Cash and
cash equivalents
|
$
809,411
|
$
619,644
|
Short-term marketable securities
|
374,528
|
337,069
|
Long-term marketable securities(1)
|
170,479
|
-
|
Total cash, cash
equivalents and marketable securities
|
1,354,418
|
956,713
|
Unused
revolving credit and A/R securitization facilities(2)
|
915,700
|
966,000
|
Total
liquidity
|
$
2,270,118
|
$
1,922,713
|
|
|
|
|
|
|
|
|
(1) Shares of Rice
Energy Inc. are subject to customary lockup provisions which expire
on November 11, 2014.
|
(2) The revolving
credit facility under our credit agreement is subject to a minimum
liquidity requirement of $300 million.
|
|
|
|
|
This information is
intended to be reviewed in conjunction with the company's filings
with the U.S. Securities and Exchange Commission.
|
Alpha Natural
Resources, Inc. and Subsidiaries
|
Condensed
Consolidated Statements of Cash Flows
|
(In
Thousands)
|
(Unaudited)
|
|
|
|
|
Nine Months Ended
September 30,
|
|
2014
|
2013
|
|
|
|
Operating
activities:
|
|
|
Net
loss
|
$ (753,300)
|
$
(754,710)
|
Adjustments to reconcile net loss to net cash provided by (used
in)
|
|
|
operating
activities:
|
|
|
Depreciation,
depletion, accretion and amortization
|
647,298
|
733,282
|
Amortization of
acquired intangibles, net
|
27,909
|
908
|
Mark-to-market
adjustments for derivatives
|
4,641
|
1,312
|
Stock-based
compensation
|
21,170
|
18,360
|
Employee benefit
plans, net
|
43,879
|
43,352
|
Loss on early
extinguishment of debt
|
2,022
|
33,039
|
Deferred income
taxes
|
(4,785)
|
(306,488)
|
Gain on exchange of
equity-method investment
|
(250,331)
|
-
|
Gain on sale of
marketable equity security
|
(16,435)
|
-
|
Asset impairment and
restructuring
|
23,633
|
24,358
|
Goodwill
impairment
|
308,651
|
253,102
|
Other, net
|
8,843
|
(16,020)
|
Changes
in operating assets and liabilities:
|
|
|
Trade accounts
receivable, net
|
(30,029)
|
118,216
|
Inventories,
net
|
(422)
|
61,116
|
Prepaid expenses and
other current assets
|
80,882
|
30,728
|
Other non-current
assets
|
24,690
|
7,052
|
Trade accounts
payable
|
11,204
|
(28,332)
|
Accrued expenses and
other current liabilities
|
(304,212)
|
152,816
|
Pension and
postretirement medical benefit obligations
|
(31,752)
|
(36,647)
|
Asset retirement
obligations
|
(39,063)
|
(31,519)
|
Other non-current
liabilities
|
(11,206)
|
(125,346)
|
Net cash provided by
(used in) operating activities
|
(236,713)
|
178,579
|
|
|
|
Investing
activities:
|
|
|
Capital
expenditures
|
(128,174)
|
(163,129)
|
Purchases of marketable securities
|
(507,804)
|
(738,800)
|
Sales of
marketable securities
|
532,323
|
680,452
|
Proceeds
from exchange of equity method investment, net
|
96,732
|
-
|
Other,
net
|
13,516
|
7,075
|
Net cash provided by
(used in) investing activities
|
6,593
|
(214,402)
|
|
|
|
Financing
activities:
|
|
|
Proceeds from
borrowings on long-term debt
|
500,000
|
964,369
|
Principal repayments of long-term debt
|
(35,993)
|
(951,894)
|
Principal repayments of capital lease obligations
|
(13,028)
|
(12,151)
|
Debt issuance and
modification costs
|
(28,185)
|
(24,317)
|
Common
stock repurchases
|
(1,392)
|
(1,352)
|
Other
|
(1,515)
|
(1,453)
|
Net cash provided by
(used in) financing activities
|
419,887
|
(26,798)
|
|
|
|
Net increase
(decrease) in cash and cash equivalents
|
$
189,767
|
$
(62,621)
|
Cash and cash
equivalents at beginning of period
|
$
619,644
|
$
730,723
|
Cash and cash
equivalents at end of period
|
$
809,411
|
$
668,102
|
|
|
|
This information is
intended to be reviewed in conjunction with the company's filings
with the U. S. Securities and Exchange Commission.
|
Alpha Natural
Resources, Inc. and Subsidiaries
|
Reconciliation of
EBITDA and Adjusted EBITDA to Net Loss
|
(In
Thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months Ended
September 30,
|
|
September 30,
2014
|
June 30,
2014
|
September 30,
2013
|
|
2014
|
2013
|
|
|
|
|
|
|
|
Net loss
(1)
|
$
(184,975)
|
$
(512,627)
|
$
(458,241)
|
|
$
(753,300)
|
$
(754,710)
|
Interest
expense
|
75,688
|
71,012
|
62,233
|
|
211,662
|
182,587
|
Interest
income
|
(574)
|
(540)
|
(1,008)
|
|
(1,730)
|
(3,133)
|
Income tax (benefit)
expense
|
(43,938)
|
(9,518)
|
(143,137)
|
|
(6,898)
|
(309,022)
|
Depreciation,
depletion and amortization
|
170,895
|
191,072
|
196,292
|
|
562,262
|
650,021
|
Amortization of
acquired intangibles, net
|
9,166
|
9,464
|
2,748
|
|
27,909
|
908
|
EBITDA
|
26,262
|
(251,137)
|
(341,113)
|
|
39,905
|
(233,349)
|
Goodwill
impairment
|
-
|
308,651
|
253,102
|
|
308,651
|
253,102
|
Asset impairment and
restructuring
|
11,544
|
2,590
|
2,017
|
|
23,633
|
24,358
|
Change in fair value
and settlement of derivative instruments
|
8,987
|
(4,466)
|
(1,865)
|
|
11,058
|
(7,671)
|
Merger related
expense (benefit)
|
1,087
|
(5,990)
|
119,824
|
|
1,595
|
122,725
|
Provision for
regulatory costs
|
-
|
-
|
-
|
|
-
|
25,000
|
Employee benefit
related expense
|
5,792
|
-
|
-
|
|
5,792
|
-
|
Loss on assets
contributed to equity affiliate
|
-
|
-
|
1,622
|
|
-
|
10,117
|
(Gain) loss on early
extinguishment of debt
|
-
|
218
|
(158)
|
|
2,022
|
33,039
|
Adjusted
EBITDA
|
$
53,672
|
$
49,866
|
$
33,429
|
|
$
392,656
|
$
227,321
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) For the
nine months ended September 30, 2014, net loss includes a gain of
$250.3 million from the exchange
of the Alpha Shale joint venture with Rice Energy.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
This information is
intended to be reviewed in conjunction with the company's filings
with the U.S. Securities and
Exchange Commission.
|
|
Alpha Natural
Resources, Inc. and Subsidiaries
|
Reconciliation of
Adjusted Net Loss to Net Loss
|
(In Thousands
Except Shares and Per Share Data)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months Ended
September 30,
|
|
September 30,
2014
|
June 30,
2014
|
September 30,
2013
|
|
2014
|
2013
|
|
|
|
|
|
|
|
Net loss
(1)
|
$
(184,975)
|
$
(512,627)
|
$
(458,241)
|
|
$
(753,300)
|
$
(754,710)
|
Goodwill
impairment
|
-
|
308,651
|
253,102
|
|
308,651
|
253,102
|
Asset impairment and
restructuring
|
11,544
|
2,590
|
2,017
|
|
23,633
|
24,358
|
Change in fair value
and settlement of derivative instruments
|
8,987
|
(4,466)
|
(1,865)
|
|
11,058
|
(7,671)
|
Merger related
expense (benefit)
|
1,087
|
(5,990)
|
119,824
|
|
1,595
|
122,725
|
Provision for
regulatory costs
|
-
|
-
|
-
|
|
-
|
25,000
|
Employee benefit
related expense
|
5,792
|
-
|
-
|
|
5,792
|
-
|
Loss on assets
contributed to equity affiliate
|
-
|
-
|
1,622
|
|
-
|
10,117
|
Loss on early
extinguishment of debt
|
-
|
218
|
(158)
|
|
2,022
|
33,039
|
Amortization of
acquired intangibles, net
|
9,166
|
9,464
|
2,748
|
|
27,909
|
908
|
Estimated income tax
effect of above adjustments
|
(13,563)
|
(677)
|
(45,873)
|
|
(26,787)
|
(66,494)
|
Discrete tax charge
from state statutory tax rate and apportionment change, net of
federal tax impact
|
-
|
-
|
(2,524)
|
|
-
|
(2,524)
|
Discrete tax charge
(benefit) from valuation allowance adjustment
|
43,655
|
87,485
|
(5,070)
|
|
181,258
|
2,614
|
Discrete tax benefit
from reversal of reserves for uncertain tax positions
|
-
|
(8,090)
|
-
|
|
(8,090)
|
-
|
Adjusted
net loss
|
$
(118,307)
|
$
(123,442)
|
$
(134,418)
|
|
$
(226,259)
|
$
(359,536)
|
|
|
|
|
|
|
|
Weighted
average shares--diluted
|
221,491,811
|
221,376,721
|
220,960,449
|
|
221,342,088
|
220,850,020
|
|
|
|
|
|
|
|
Adjusted
diluted income (loss) per common share
|
$
(0.53)
|
$
(0.56)
|
$
(0.61)
|
|
$
(1.02)
|
$
(1.63)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) For the
nine months ended September 30, 2014, net loss includes a gain of
$250.3 million from the exchange of
the Alpha Shale joint venture with Rice Energy.
|
|
|
|
|
|
|
|
This information is
intended to be reviewed in conjunction with the company's filings
with the U.S. Securities and
Exchange Commission.
|
|
|
|
SOURCE Alpha Natural Resources, Inc.