ST. LOUIS, April 23, 2015 /PRNewswire/ -- Peabody
Energy (NYSE: BTU) today reported first quarter 2015 revenues of
$1.54 billion, leading to Adjusted
EBITDA of $165.6 million.
Diluted Loss Per Share from Continuing Operations and Adjusted
Diluted EPS totaled $(0.62),
including a $0.23 impact related to
refinancing the 2016 Senior Notes.
"In the face of market headwinds, Peabody's first quarter
performance demonstrates the underlying strength of our business as
ongoing cost improvements largely overcame lower coal prices and
the impact of hedging," said Peabody Energy President and CEO-Elect
Glenn Kellow. "While our team has made considerable strides
in driving down costs, we know we have further work to do, and we
are implementing a wide range of initiatives to provide sustainable
results and generate shareholder value."
RESULTS FROM CONTINUING OPERATIONS
First quarter revenues totaled $1.54
billion compared with $1.63
billion in the prior year due to lower realized pricing and
a shift in U.S. production mix toward the Southern Powder River
Basin. First quarter Adjusted EBITDA of $165.6 million declined 6 percent from the prior
year, and includes the impact of $100
million in lower pricing and the timing of Resource
Management transactions.
First quarter 2015 results include the impact of $103.8 million related to currency and diesel
fuel hedging, shown in the table below:
|
|
|
Quarter
Ended
|
|
(in
millions)
|
March
2015
|
March
2014
|
Change
|
Adjusted EBITDA -
U.S. Mining:
|
|
|
|
|
U.S. Mining
Operations (before hedging)
|
$ 271.5
|
$ 254.6
|
$ 16.9
|
|
Commodity Hedging
Results
|
(17.4)
|
(2.0)
|
(15.4)
|
Total U.S. Mining
Adjusted EBITDA
|
$
254.1
|
$
252.6
|
$
1.5
|
Adjusted EBITDA -
Australian Mining:
|
|
|
|
|
Australian Mining
Operations (before hedging)
|
$ 61.9
|
$ 21.0
|
$ 40.9
|
|
Foreign Currency
Hedging Results
|
(73.6)
|
(18.8)
|
(54.8)
|
|
Commodity Hedging
Results
|
(12.8)
|
(0.4)
|
(12.4)
|
|
|
Total Hedging
Results
|
(86.4)
|
(19.2)
|
(67.2)
|
Total Australian
Mining Adjusted EBITDA
|
$
(24.5)
|
$
1.8
|
$
(26.3)
|
U.S. Mining Adjusted EBITDA increased $1.5 million over the prior year to $254.1 million as cost reduction efforts offset
the impact of lower Midwest realizations. U.S. Mining
revenues of $965.0 million declined 2
percent from the prior year due to a greater mix of Southern Powder
River Basin sales and lower realized pricing in the Midwest.
U.S. costs per ton declined 3 percent as a result of a greater mix
of Western shipments, continued cost containment activities and the
net benefit from lower fuel prices.
Australian Mining Adjusted EBITDA declined $26.3 million to $(24.5)
million in the first quarter, and includes $(67.2) million in higher hedging losses versus
the prior year. Before hedging, Australian Mining Operations
increased $40.9 million to
$61.9 million, as approximately
$110 million in lower pricing was
more than offset by nearly $150
million in lower costs, split evenly between operational
improvements and lower currency and fuel prices. First
quarter Australian results also include approximately $25 million related to temporary overburden
sequencing issues at the Coppabella Mine, along with mechanical
related delays at the North Goonyella Mine, both of which have been
resolved. Excluding the impact of hedging, all Australian
mines would have generated positive Adjusted EBITDA in the first
quarter except for the contractor-operated Burton Mine.
Australian Mining revenues declined $63.6
million to $548.2 million,
reflecting a 16 percent decline in revenues per ton, partly offset
by a 7 percent increase in shipments. Australian volumes
totaled 8.8 million tons, including 3.8 million tons of
metallurgical coal at an average realized price of $89.14 per ton and 3.0 million tons of export
thermal coal at $57.64 per ton, with
the remaining 2.0 million tons delivered under domestic thermal
contracts. Australian costs per ton declined 12 percent,
reflecting sustainable cost reductions, lower fuel prices and the
repeal of the carbon tax.
Selling and Administrative Expenses declined 17 percent to
$49.4 million, reflecting benefits
from the company's comprehensive cost containment programs and
marking the lowest quarterly total in six years.
Loss from Continuing Operations totaled $(164.4) million compared to $(44.3) million in the prior year, and includes
the impact of $103.8 million related
to currency and fuel hedging and $62.1
million, or $0.23 per share,
in debt extinguishment charges and additional interest expense
during the refinancing of the 2016 Senior Notes. Diluted Loss
from Continuing Operations and Adjusted Diluted EPS totaled
$(0.62).
First quarter operating cash flow was $3.4 million, including $58.2 million related to debt extinguishment
charges, while capital spending was $25.1
million. Following financing activities during the
quarter, cash balances increased $339.1
million to $637.1 million,
with total liquidity of $2.22
billion. Cash balances include $94.1 million in refinancing proceeds that were
used to redeem the remaining outstanding 2016 Senior Notes on
April 15, 2015.
GLOBAL COAL MARKETS
"While global coal markets remained weak during the first
quarter, thermal coal production curtailments are beginning to
accelerate and seaborne metallurgical coal supply is expected to
decline for the first time in three years," said Kellow. "The
impact of slowing Chinese demand has weighed on the market, yet we
expect rising Indian coal imports, ongoing global urbanization
trends and economic growth to lead to rising steel and electricity
consumption over the next several years."
Within global coal markets:
- The second quarter metallurgical coal benchmark for
high-quality low-vol hard coking coal settled at $109.50 per tonne with benchmark low-vol PCI at
$92.50 per tonne. The annual thermal
benchmark commencing on April 1 for
Newcastle-quality coal settled at $67.80 per tonne. Over the last year, the weaker
Australian dollar has outpaced the decline in seaborne coal
pricing. While the U.S. dollar price for hard coking coal and
thermal coal declined 9 percent and 17 percent, respectively, the
Australian dollar price increased 8 percent and declined 2 percent,
respectively, in the same period, placing additional pressure on
U.S. exports;
- Chinese coal imports remain challenged amid slower demand and
efforts to support the domestic coal industry, including quality
restrictions, tariffs and lower domestic taxes that have
temporarily prevailed over delivered import economics. In the first
two months of the year, thermal coal imports declined 51 percent,
while metallurgical coal imports fell 14 percent, indicating
relatively stronger underlying Chinese seaborne metallurgical coal
demand. Coal imports are expected to rebase as growing economic
stimulus actions take hold, excess property supply is eliminated,
domestic coal production is rationalized and policy restrictions
ease; and
- India is expected to surpass
China to become the largest
seaborne coal importer in 2015. India has publicly announced its commitment to
long-term coal use as a fundamental building block for fueling
India's accelerating economic
growth. Through March, Indian thermal coal imports rose 16 million
tonnes and coal-fueled generation grew 6 percent. Metallurgical
coal imports increased 49 percent to 12 million tonnes through the
first quarter of the year. Metallurgical coal demand is expected to
expand as India continues to rely
on the seaborne market to meet the vast majority of its growing
metallurgical coal needs.
Seaborne metallurgical coal fundamentals are in the process of
rebalancing, with supply expected to decline approximately 10
million tonnes on further North American curtailments and flat
Australian exports. Approximately 20 million tonnes of
announced production cutbacks are expected to be realized this
year, and more supply reduction announcements are likely in
response to current prices. In addition, capital spending
remains extremely constrained, and Peabody believes that a
significant increase in metallurgical coal prices will be required
to incentivize new investment. Seaborne metallurgical coal
demand is anticipated to improve on rising steel intensity per
capita. New coastal steel plants are being constructed in
Asia and are expected to require
more than 30 million tonnes of seaborne metallurgical coal by late
2016.
While seaborne thermal coal markets remain challenged due to
strong supply and reduced Chinese imports, major producers in
Australia and China have announced significant production
cutbacks during the quarter, and additional global reductions are
expected. Seaborne thermal demand is projected to improve as
new coal-fueled generation continues to be built in a number of
emerging and developed nations.
Within U.S. coal markets:
- Coal generation declined 14 percent through March and natural
gas generation increased 14 percent on lower natural gas prices
that averaged $2.82 per mmBtu
compared to $4.26 per mmBtu in 2014.
As a result, Peabody now projects 2015 U.S. coal demand to decline
80 to 100 million tons;
- U.S. coal production is expected to decline in 2015, with
growing curtailments occurring in the second half of the year. U.S.
exports are expected to decline 30 to 40 million tons this year,
with metallurgical coal exports now expected to be 10 to 15 million
tons lower than 2014; and
- Peabody has reduced its 2015 U.S. volume targets by 10 million
tons in light of current market conditions.
While an estimated 35 percent of U.S. electricity will be
generated by coal in 2015, coal's share of U.S. electricity
generation is projected to increase to nearly 40 percent in 2017 on
higher natural gas prices and rising coal plant utilization that
partly offset the impact of coal unit retirements. Southern
Powder River and Illinois Basin
demand is anticipated to rise 50 to 70 million tons during that
time.
PEABODY TARGETING IMPROVEMENT ACTIONS ACROSS FOUR AREAS OF
BUSINESS
"The Peabody team has clearly demonstrated its ability to
improve performance in the face of extended market weakness," said
Kellow. "With speed, focus and purpose, we are taking
additional substantial measures with an emphasis on improving our
platform across four primary areas of the business. These
measures, combined with our portfolio exposure to key markets,
provide Peabody multiple avenues for success now and in the
future."
Major actions include:
- Operational: Maintaining a relentless focus on improving
safety, increasing productivity and driving down operating costs.
Peabody continues to improve productivity and has reduced its
global workforce more than 20 percent over the last three years.
Capital spending targets have been further reduced, and are
primarily allocated to safety and sustaining capital items. The
company continues its efforts across a host of cost containment
initiatives, including procurement, maintenance and
operations;
- SG&A: Building on the 17% cost improvement in the
first quarter, the company is targeting a leaner structure through
office closures, process rationalization and overhead reductions.
The company is also implementing a global shared services center to
centralize administrative functions, while pursuing other ongoing
initiatives;
- Financial: Maximizing cash and liquidity in the near
term. In the first quarter, the company amended its credit
agreement, proactively refinanced its 2016 Senior Notes and
increased liquidity. The company now has no significant debt
maturities for more than three years. Longer term, Peabody intends
to use excess proceeds from asset sales, lower fixed obligations
and improving coal markets to reduce debt; and
- Portfolio: Initiating a heightened emphasis on portfolio
optimization through asset sales and joint ventures, including
sales of non-core reserves, surface lands and partial interests in
active operations. As part of this initiative, the company is
progressing a strategic review of its portfolio of Australian
tenements and is continuing to explore interest for U.S. assets.
Peabody has more than 7.5 billion tons of coal reserves, including
approximately 3 billion tons not assigned to active mining
operations, along with 500,000 acres of surface lands and other
assets that are under evaluation. The company is also evaluating
options at its highest cost operation, the Burton Mine in
Australia, where the current
contract-miner agreement expires in mid-2016.
Additionally, by early 2017, Peabody has $685 million in potential annual cash improvement
compared with 2015 related to the following items:
- $275 million in lower cash
payments related to Southern Powder River Basin reserve
installments that end in 2016;
- $75 million in lower cash
payments related to health benefit trust payments that expire in
January 2017; and
- $335 million in potential lower
currency rates and fuel prices as legacy hedge transactions roll
off. Peabody has historically employed a rolling 36-month hedge
program for diesel fuel and the Australian dollar. The hedge
positions and estimated cumulative cost improvements are shown
below and are based on the declining hedge positions over time and
the current forward diesel fuel prices and exchange rates as of
March 31, 2015.
Currency and Fuel
Hedge Position
|
|
Australian Dollar
Hedging
|
2015
|
2016
|
2017
|
Percent
Hedged
|
66%
|
42%
|
22%
|
Hedge Rate
|
$0.95
|
$0.92
|
$0.88
|
All-in
Rate
|
$0.89
|
$0.82
|
$0.77
|
Potential Lower Costs
Compared to 2015
|
|
$170
|
$289
|
|
|
|
|
Fuel
Hedging
|
2015
|
2016
|
2017
|
Percent
Hedged
|
91%
|
64%
|
44%
|
Hedge Price (per
barrel equivalent)
|
$84
|
$85
|
$79
|
All-in Price (per
barrel equivalent)
|
$80
|
$72
|
$68
|
Potential Lower Costs
Compared to 2015
|
|
$31
|
$46
|
Total Potential
Lower Costs Compared to 2015
|
|
$201
|
$335
|
|
|
|
|
|
* Potential lower
costs compared to 2015 are in millions.
|
* 2015 hedge
percentages and hedge rate/price are for April through December
2015; 2015 all-in rate/price incorporates the full year for
year-on-year comparisons.
|
* Estimated
cumulative savings in millions and based on 2015 estimated
requirements of ~$2.4 billion AUD and ~155 million gallons of
diesel fuel usage.
|
OUTLOOK
Peabody's 2015 U.S. production is fully priced with 2016 U.S.
production approximately 40 to 50 percent unpriced based on revised
expectations for 2015 production levels. Peabody has
approximately 75 million tons of Southern Powder River Basin
production for 2016 delivery that is priced 9 percent above
expected 2015 realized levels.
Peabody is targeting second quarter 2015 Adjusted EBITDA of
$135 million to $175 million and
Adjusted Diluted EPS of $(0.59) to
$(0.49). Compared with the first quarter of 2015,
second quarter 2015 targets reflect the annual guidance factors
listed below along with lower seaborne coal prices and a
traditional U.S. shoulder period. The Adjusted EPS range also
includes approximately $0.03 per
share of debt extinguishment charges related to the remaining
outstanding 2016 Senior Notes that were redeemed on April 15, 2015.
|
New
2015
Guidance
|
Prior Guidance
(where changed)
|
Sales Volumes
(in million tons)
|
|
|
U.S.
Australia
Trading &
Brokerage
Total
|
180 – 190
35 – 37
20 – 28
235 – 255
|
190 – 200
|
|
|
|
U.S.
Operations
Revenue Per Ton (vs
2014)
Costs Per Ton (vs
2014)
|
3% – 5%
lower
3% – 5%
lower
|
2% – 4%
lower
2% – 4%
lower
|
|
|
|
Australia
Operations
Metallurgical Coal
Sales
Export Thermal
Sales
Costs Per
Ton
|
15 – 16 million
tons
12 – 13 million
tons
$62 – $64
|
2% – 4%
lower
|
|
|
|
Depreciation,
Depletion and Amortization
|
$600 – $640
million
|
|
|
|
|
Capital
Expenditures
|
$170 – $190
million
|
$180 – $200
million
|
Peabody Energy is the world's largest private-sector coal
company and a global leader in sustainable mining, energy access
and clean coal solutions. The company serves metallurgical
and thermal coal customers in more than 25 countries on six
continents. Peabody was named Energy Company of the Year at
the 2014 Platts Global Energy Awards. For further
information, visit PeabodyEnergy.com and
AdvancedEnergyForLife.com.
Certain statements in this press release are forward-looking as
defined in the Private Securities Litigation Reform Act of 1995.
The company uses words such as "anticipate," "believe," "expect,"
"may," "forecast," "project," "should," "estimate," "plan,"
"outlook," "target," "likely," "will," "to be" or other similar
words to identify forward-looking statements. These forward-looking
statements are based on numerous assumptions that the company
believes are reasonable, but they are open to a wide range of
uncertainties and business risks that may cause actual results to
differ materially from expectations as of April 23, 2015. These factors are difficult
to accurately predict and may be beyond the company's control. The
company does not undertake to update its forward-looking
statements. Factors that could affect the company's results
include, but are not limited to: supply and demand for the
company's coal products; price volatility and customer procurement
practices, particularly in international seaborne products and in
the company's trading and brokerage businesses; impact of
alternative energy sources, including natural gas and renewables;
global steel demand and the downstream impact on metallurgical coal
prices; impact of weather and natural disasters on demand and
production; reductions and/or deferrals of purchases by major
customers and the company's ability to renew sales contracts;
credit and performance risks associated with customers, suppliers,
contract miners, co-shippers, and trading, banks and other
financial counterparties; geologic, equipment, permitting, site
access, operational risks and new technologies related to mining;
transportation availability, performance and costs; availability,
timing of delivery and costs of key supplies, capital equipment or
commodities such as diesel fuel, steel, explosives and tires;
impact of take-or-pay agreements for rail and port commitments for
the delivery of coal; successful implementation of business
strategies; negotiation of labor contracts, employee relations and
workforce availability; changes in postretirement benefit and
pension obligations and their related funding requirements;
replacement and development of coal reserves; adequate liquidity
and the cost, availability and access to capital and financial
markets; ability to appropriately secure the
company's obligations for reclamation, federal and state
workers' compensation, federal coal leases and other obligations
related to our operations; effects of changes in interest rates and
currency exchange rates (primarily the Australian dollar); effects
of acquisitions or divestitures; economic strength and political
stability of countries in which the company has operations or
serves customers; legislation, regulations and court decisions or
other government actions, including, but not limited to, new
environmental and mine safety requirements; changes in income tax
regulations, sales-related royalties, or other regulatory taxes and
changes in derivative laws and regulations; litigation, including
claims not yet asserted; terrorist attacks or other security
threats, including cybersecurity threats; impacts of pandemic
illnesses; and other risks detailed in the company's reports
filed with the Securities and Exchange Commission (SEC).
Included in the company's release of financial information
accounted for in accordance with generally accepted accounting
principles (GAAP) are certain non-GAAP financial measures, as
defined by SEC regulations. The company has defined below the
non-GAAP financial measures that are used and has included in the
tables following this release reconciliations of these measures to
the most directly comparable GAAP measures.
Adjusted EBITDA is defined as (loss) income from continuing
operations before deducting net interest expense; income taxes;
asset retirement obligation expenses; depreciation, depletion, and
amortization; asset impairment and mine closure costs; charges for
the settlement of claims and litigation related to previously
divested operations; and changes in deferred tax asset valuation
allowance and amortization of basis difference related to equity
affiliates. Adjusted EBITDA, which is not calculated
identically by all companies, is not a substitute for operating
income, net income or cash flow as determined in accordance with
United States GAAP. Management uses Adjusted EBITDA as the
primary metric to measure segment operating performance and also
believes it is useful to investors in comparing the company's
current results with those of prior and future periods and in
evaluating the company's operating performance without regard to
its capital structure or the cost basis of its assets.
Adjusted (Loss) Income from Continuing Operations and Adjusted
Diluted EPS are defined as (loss) income from continuing operations
and diluted earnings per share from continuing operations,
respectively, excluding the impacts of asset impairment and mine
closure costs and charges for the settlement of claims and
litigation related to previously divested operations, net of tax,
and the remeasurement of foreign income tax accounts on the
company's income tax provision. The company calculates income tax
benefits related to asset impairment and mine closure costs and
charges for the settlement of claims and litigation related to
previously divested operations based on the enacted tax rate in the
jurisdiction in which they have been or will be realized, adjusted
for the estimated recoverability of those benefits.
Management has included these measures because, in the opinion of
management, excluding those foregoing items is useful in comparing
the company's current results with those of prior and future
periods. Management also believes that excluding the impact
of the remeasurement of foreign income tax accounts represents a
meaningful indicator of the company's ongoing effective tax
rate.
CONTACT:
Vic Svec
(314) 342-7768
Condensed
Consolidated Statements of Operations (Unaudited)
|
|
|
|
For the Quarters
Ended Mar. 31, 2015 and 2014
|
|
|
|
(In Millions, Except
Per Share Data)
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
|
|
Mar.
|
|
Mar.
|
|
|
|
2015
|
|
2014
|
|
|
|
|
|
|
Tons Sold
|
|
60.6
|
|
|
61.3
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
1,537.9
|
|
|
$
|
1,626.8
|
|
Operating Costs and
Expenses (1)
|
|
1,321.6
|
|
|
1,394.8
|
|
Depreciation,
Depletion and Amortization
|
|
147.5
|
|
|
157.2
|
|
Asset Retirement
Obligation Expenses
|
|
14.2
|
|
|
15.6
|
|
Selling and
Administrative Expenses
|
|
49.4
|
|
|
59.5
|
|
Other Operating
(Income) Loss:
|
|
|
|
|
Net Gain on Disposal
of Assets
|
|
(0.1)
|
|
|
(9.8)
|
|
Loss from Equity
Affiliates:
|
|
|
|
|
Results of
Operations
|
|
1.4
|
|
|
5.4
|
|
Change in
Deferred Tax Asset Valuation Allowance
|
|
0.3
|
|
|
—
|
|
Amortization
of Basis Difference
|
|
1.4
|
|
|
1.2
|
|
Loss from
Equity Affiliates
|
|
3.1
|
|
|
6.6
|
|
Operating
Profit
|
|
2.2
|
|
|
2.9
|
|
Interest
Income
|
|
(2.5)
|
|
|
(3.6)
|
|
Interest
Expense:
|
|
|
|
|
Interest
Expense
|
|
106.6
|
|
|
103.3
|
|
Loss on Debt
Extinguishment
|
|
59.5
|
|
|
—
|
|
Interest
Expense
|
|
166.1
|
|
|
103.3
|
|
Loss from Continuing
Operations Before Income Taxes
|
|
(161.4)
|
|
|
(96.8)
|
|
Income Tax Provision
(Benefit):
|
|
|
|
|
Provision
(Benefit)
|
|
3.2
|
|
|
(51.1)
|
|
Remeasurement Benefit
Related to Foreign Income Tax Accounts
|
|
(0.2)
|
|
|
(1.4)
|
|
Income Tax
Provision (Benefit)
|
|
3.0
|
|
|
(52.5)
|
|
Loss from Continuing
Operations, Net of Income Taxes
|
|
(164.4)
|
|
|
(44.3)
|
|
(Loss) Income from
Discontinued Operations, Net of Income Taxes
|
|
(8.9)
|
|
|
0.2
|
|
Net Loss
|
|
(173.3)
|
|
|
(44.1)
|
|
Less: Net Income
Attributable to Noncontrolling Interests
|
|
3.3
|
|
|
4.4
|
|
Net Loss Attributable
to Common Stockholders
|
|
$
|
(176.6)
|
|
|
$
|
(48.5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
$
|
165.6
|
|
|
$
|
176.9
|
|
|
|
|
|
|
Diluted EPS - Loss
from Continuing Operations (2)(3)
|
|
$
|
(0.62)
|
|
|
$
|
(0.18)
|
|
|
|
|
|
|
Diluted EPS - Net
Loss Attributable to Common Stockholders (2)
|
|
$
|
(0.65)
|
|
|
$
|
(0.18)
|
|
|
|
|
|
|
|
Adjusted Diluted EPS
(2)
|
|
$
|
(0.62)
|
|
|
$
|
(0.19)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Excludes items shown
separately.
|
(2)
|
Weighted average
diluted shares outstanding were 270.1 million and 267.9 million for
the quarters ended March 31, 2015 and 2014,
respectively.
|
(3)
|
Reflects loss from
continuing operations, net of income taxes, less net income
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
Ended Mar. 31, 2015 and 2014
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
Mar.
|
|
Mar.
|
|
|
2015
|
|
2014
|
Revenue Summary (In
Millions)
|
|
|
|
|
|
U.S. Mining
Operations
|
|
$
|
965.0
|
|
|
$
|
985.0
|
|
|
|
Australian Mining
Operations
|
|
548.2
|
|
|
611.8
|
|
|
|
Trading and Brokerage
Operations
|
|
16.7
|
|
|
21.0
|
|
|
|
Other
|
|
8.0
|
|
|
9.0
|
|
|
|
Total
|
|
$
|
1,537.9
|
|
|
$
|
1,626.8
|
|
|
|
|
|
|
Tons Sold (In
Millions)
|
|
|
|
|
|
|
Midwestern U.S.
Mining Operations
|
|
5.9
|
|
|
6.2
|
|
|
|
Western U.S. Mining
Operations
|
|
41.9
|
|
|
41.5
|
|
|
|
Australian Mining
Operations (1)
|
|
8.8
|
|
|
8.2
|
|
|
|
Trading and Brokerage
Operations
|
|
4.0
|
|
|
5.4
|
|
|
|
Total
|
|
60.6
|
|
|
61.3
|
|
|
|
|
|
|
Revenues per Ton -
Mining Operations
|
|
|
|
|
|
Midwestern
U.S.
|
|
$
|
47.05
|
|
|
$
|
48.97
|
|
|
|
Western
U.S.
|
|
16.43
|
|
|
16.42
|
|
|
|
Total -
U.S.
|
|
20.19
|
|
|
20.65
|
|
|
|
Australia
|
|
62.65
|
|
|
74.48
|
|
|
|
|
|
|
Operating Costs per
Ton (2)
|
|
|
|
|
|
Midwestern U.S.
(3)
|
|
$
|
34.85
|
|
|
$
|
36.25
|
|
|
|
Western U.S.
(3)
|
|
12.08
|
|
|
12.23
|
|
|
|
Total - U.S.
(3)
|
|
14.87
|
|
|
15.35
|
|
|
|
Australia
(3)
|
|
65.46
|
|
|
74.26
|
|
|
|
|
|
|
Gross Margin per Ton
(2)
|
|
|
|
|
|
Midwestern U.S.
(3)
|
|
$
|
12.20
|
|
|
$
|
12.72
|
|
|
|
Western U.S.
(3)
|
|
4.35
|
|
|
4.19
|
|
|
|
Total - U.S.
(3)
|
|
5.32
|
|
|
5.30
|
|
|
|
Australia
(3)
|
|
(2.81)
|
|
|
0.22
|
|
|
|
|
|
|
Other Supplemental
Financial Data (In Millions)
|
|
|
|
|
Adjusted EBITDA -
U.S. Mining:
|
|
|
|
|
U.S. Mining
Operations
|
|
$
|
271.5
|
|
|
$
|
254.6
|
|
Commodity Hedging
Results
|
|
(17.4)
|
|
|
(2.0)
|
|
Total U.S.
Mining
|
|
254.1
|
|
|
252.6
|
|
Adjusted EBITDA -
Australian Mining:
|
|
|
|
|
Australian Mining
Operations
|
|
61.9
|
|
|
21.0
|
|
Foreign Currency
Hedging Results
|
|
(73.6)
|
|
|
(18.8)
|
|
Commodity Hedging
Results
|
|
(12.8)
|
|
|
(0.4)
|
|
Total
Australian Mining
|
|
(24.5)
|
|
|
1.8
|
|
Adjusted EBITDA -
Trading and Brokerage
|
|
|
|
|
Trading and Brokerage
Operations
|
|
3.8
|
|
|
13.7
|
|
Litigation
Settlement
|
|
—
|
|
|
(15.6)
|
|
Total Trading
and Brokerage
|
|
3.8
|
|
|
(1.9)
|
|
Adjusted EBITDA -
Resource Management (4)
|
|
1.2
|
|
|
9.5
|
|
Selling and
Administrative Expenses
|
|
(49.4)
|
|
|
(59.5)
|
|
Other Operating
Costs, Net (5)
|
|
(19.6)
|
|
|
(25.6)
|
|
Adjusted
EBITDA
|
|
165.6
|
|
|
176.9
|
|
Operating Cash
Flows
|
|
3.4
|
|
|
54.1
|
|
Acquisitions of
Property, Plant and Equipment
|
|
25.1
|
|
|
24.4
|
|
|
|
|
|
|
|
|
(1)
|
Metallurgical coal
tons sold totaled 3.8 million and 3.2 million for the quarters
ended Mar. 31, 2015 and 2014, respectively.
|
(2)
|
Includes
revenue-based production taxes and royalties; excludes
depreciation, depletion and amortization; asset retirement
obligation expenses; selling and administrative expenses; and
certain other costs related to post-mining activities.
|
(3)
|
Operating costs per
ton and gross margin per ton for Midwestern U.S., Western U.S., and
Total - U.S. include hedging losses of $1.29, $0.23, and $0.36,
respectively, for the quarter ended Mar. 31, 2015, and $0.15,
$0.03, and $0.04, respectively, for the quarter ended Mar. 31,
2014. Operating costs per ton and gross margin per ton for
Australia include hedging losses of $9.82 and $2.34 for the
quarters ended Mar. 31, 2015 and 2014, respectively.
|
(4)
|
Includes certain
asset sales, property management costs and revenues, and coal
royalty expense.
|
(5)
|
Includes loss from
equity affiliates (before the impact of related changes in deferred
tax asset valuation allowance and amortization of basis
difference)and costs associated with 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 Mar. 31,
2015 and Dec. 31, 2014
|
|
|
|
|
|
|
(Dollars In
Millions)
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
March 31,
2015
|
|
Dec. 31,
2014
|
Cash and Cash
Equivalents
|
|
$
|
637.1
|
|
|
$
|
298.0
|
|
Accounts Receivable,
Net
|
|
431.4
|
|
|
563.1
|
|
Inventories
|
|
369.5
|
|
|
406.5
|
|
Deferred Income
Taxes
|
|
83.9
|
|
|
80.0
|
|
Other Current
Assets
|
|
287.0
|
|
|
363.4
|
|
Total Current
Assets
|
|
1,808.9
|
|
|
1,711.0
|
|
Property, Plant,
Equipment and Mine Development, Net
|
|
10,451.8
|
|
|
10,577.3
|
|
Deferred Income
Taxes
|
|
1.1
|
|
|
0.7
|
|
Investments and Other
Assets
|
|
889.9
|
|
|
902.1
|
|
Total Assets
|
|
$
|
13,151.7
|
|
|
$
|
13,191.1
|
|
|
|
|
|
|
Current Portion of
Long-Term Debt (1)
|
|
$
|
104.1
|
|
|
$
|
21.2
|
|
Accounts
Payable and Accrued Expenses
|
|
1,618.7
|
|
|
1,809.2
|
|
Other Current
Liabilities
|
|
38.7
|
|
|
32.7
|
|
Total Current
Liabilities
|
|
1,761.5
|
|
|
1,863.1
|
|
Long-Term Debt, Less
Current Portion
|
|
6,287.5
|
|
|
5,965.6
|
|
Deferred Income
Taxes
|
|
86.4
|
|
|
89.1
|
|
Other Noncurrent
Liabilities
|
|
2,507.2
|
|
|
2,546.8
|
|
Total
Liabilities
|
|
10,642.6
|
|
|
10,464.6
|
|
Stockholders'
Equity
|
|
2,509.1
|
|
|
2,726.5
|
|
Total Liabilities and Stockholders' Equity
|
|
$
|
13,151.7
|
|
|
$
|
13,191.1
|
|
|
|
|
|
|
|
(1)
|
Current period
balance includes $83.1 million aggregate principal amount of the
company's 7.375% Senior Notes due November 2016 that remained
outstanding as of March 31, 2015 and were redeemed with cash on
hand on April 15, 2015 pursuant to the related notice of
redemption.
|
|
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
Ended Mar. 31, 2015 and 2014
|
|
(Dollars In Millions,
Except Per Share Data)
|
|
Quarter
Ended
|
|
|
|
Mar.
|
|
Mar.
|
|
|
|
2015
|
|
2014
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
$
|
165.6
|
|
|
$
|
176.9
|
|
|
Depreciation,
Depletion and Amortization
|
|
147.5
|
|
|
157.2
|
|
|
Asset Retirement
Obligation Expenses
|
|
14.2
|
|
|
15.6
|
|
|
Change in Deferred
Tax Asset Valuation Allowance Related to Equity
Affiliates
|
|
0.3
|
|
|
—
|
|
|
Amortization of Basis
Difference Related to Equity Affiliates
|
|
1.4
|
|
|
1.2
|
|
|
Interest
Income
|
|
(2.5)
|
|
|
(3.6)
|
|
|
Interest
Expense
|
|
166.1
|
|
|
103.3
|
|
|
Income Tax Provision
(Benefit) Before Remeasurement on Income Tax Accounts
|
|
3.2
|
|
|
(51.1)
|
|
Adjusted Loss from
Continuing Operations (1)
|
|
(164.6)
|
|
|
(45.7)
|
|
|
Remeasurement Benefit
Related to Foreign Income Tax Accounts
|
|
(0.2)
|
|
|
(1.4)
|
|
|
|
|
|
|
|
Loss from Continuing
Operations, Net of Income Taxes
|
|
$
|
(164.4)
|
|
|
$
|
(44.3)
|
|
|
|
|
|
|
|
Net Income
Attributable to Noncontrolling Interests
|
|
$
|
3.3
|
|
|
$
|
4.4
|
|
|
|
|
|
|
|
Diluted EPS - Loss
from Continuing Operations (2)
|
|
$
|
(0.62)
|
|
|
$
|
(0.18)
|
|
|
Remeasurement Benefit
Related to Foreign Income Tax Accounts
|
|
—
|
|
|
(0.01)
|
|
Adjusted Diluted
EPS
|
|
$
|
(0.62)
|
|
|
$
|
(0.19)
|
|
|
|
|
|
|
|
Targeted Results
for the Quarter Ending Jun. 30, 2015 (Unaudited)
|
|
|
|
|
|
|
(Dollars In Millions,
Except Per Share Data)
|
|
Quarter
Ending
|
|
|
|
Jun. 30,
2015
|
|
|
|
Targeted
Results
|
|
|
|
Low
|
|
High
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
$
|
135
|
|
|
$
|
175
|
|
|
Depreciation,
Depletion and Amortization
|
|
154
|
|
|
164
|
|
|
Asset Retirement
Obligation Expenses
|
|
15
|
|
|
13
|
|
|
Interest
Income
|
|
(2)
|
|
|
(4)
|
|
|
Interest
Expense
|
|
121
|
|
|
119
|
|
|
Loss on Debt
Extinguishment
|
|
8
|
|
|
8
|
|
|
Income Tax Provision
Before Remeasurement of Foreign Income Tax Accounts
|
|
—
|
|
|
5
|
|
Adjusted Loss from
Continuing Operations (1)
|
|
(161)
|
|
|
(130)
|
|
|
Remeasurement Expense
Related to Foreign Income Tax Accounts
|
|
—
|
|
|
—
|
|
Loss from Continuing
Operations, Net of Income Taxes
|
|
$
|
(161)
|
|
|
$
|
(130)
|
|
|
|
|
|
|
|
Net Income
Attributable to Noncontrolling Interests
|
|
$
|
—
|
|
|
$
|
4
|
|
|
|
|
|
|
|
Diluted EPS - Loss
from Continuing Operations (2)
|
|
$
|
(0.59)
|
|
|
$
|
(0.49)
|
|
|
Remeasurement Expense
Related to Foreign Income Tax Accounts
|
|
—
|
|
|
—
|
|
Adjusted Diluted
EPS
|
|
$
|
(0.59)
|
|
|
$
|
(0.49)
|
|
|
|
|
|
|
|
|
|
(1)
|
In order to arrive at
the numerator used to calculate Adjusted Diluted EPS, it is
necessary to deduct net income attributable to noncontrolling
interests from this amount.
|
(2)
|
Reflects loss from
continuing operations, net of income taxes, less net income
attributable to noncontrolling interests.
|
|
|
|
|
|
|
This information
is intended to be reviewed in conjunction with the company's
filings with the SEC.
|
Logo -
http://photos.prnewswire.com/prnh/20120724/CG44353LOGO
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/peabody-energy-announces-results-for-the-quarter-ended-march-31-2015-300070742.html
SOURCE Peabody Energy