ST. LOUIS, July 28, 2015 /PRNewswire/ -- Peabody Energy
(NYSE: BTU) today reported second quarter 2015 revenues of
$1.34 billion. Adjusted EBITDA
totaled $87.0 million, which includes
$21.2 million in restructuring
charges related to reductions in corporate and regional staff and
Australian Mining Operations. Diluted Loss Per Share from
Continuing Operations totaled $(3.71), including a $(3.06) per share impact related to asset
impairments. Adjusted Diluted EPS totaled $(0.65), including a $(0.07) per share impact related to restructuring
activities.
"Peabody accelerated a number of initiatives in the second
quarter to reduce operating costs, create a leaner organization and
optimize our portfolio," said Peabody Energy President and Chief
Executive Officer Glenn Kellow.
"As we manage through extended low-cycle market conditions,
Peabody is taking aggressive actions on multiple fronts to preserve
and enhance long-term value."
RESULTS FROM CONTINUING OPERATIONS
Beginning this quarter, the company is redefining its mining
segments to include greater disclosure of the PRB, Western U.S.,
Australian Thermal and Australian Metallurgical coal
operations. Second quarter revenues totaled $1.34 billion compared with $1.76 billion in the prior year due to a 16
percent volume decline and lower realized
pricing. Second quarter Adjusted EBITDA declined
$126.1 million from the prior period
to $87.0 million, reflecting
approximately $115 million in lower
pricing, a $113.1 million negative
hedging impact, nearly $40 million in
PRB weather impacts and a $21.2
million restructuring charge. These factors were
largely offset by approximately $195
million in lower operating and administrative
costs.
U.S. Mining Adjusted EBITDA declined $80.1 million to $211.5
million, primarily due to a 6.4 million ton volume decline
and an 8 percent decrease in average price per ton. U.S.
costs per ton improved 4 percent due to cost reductions and lower
fuel prices. PRB margin per ton totaled $3.11 in the second quarter, and includes a
weather-related impact of approximately $0.65 per ton. Adverse weather reduced PRB
volumes by approximately 5.5 million tons, primarily from the North
Antelope Rochelle Mine, and the company expects to increase
shipments in the second half of 2015.
Australian Mining Adjusted EBITDA increased $50.5 million to $55.8
million in the second quarter, as approximately $160 million in cost improvements overcame
$90 million in lower pricing.
Australian costs per ton improved 28 percent to $52.48, which includes the benefit of lower
currency and fuel rates. Australian volumes totaled 8.6
million tons, including 4.1 million tons of metallurgical coal at
an average realized price of $79.16
and 2.8 million tons of export thermal coal at $54.70 per ton, with the remaining 1.7 million
tons delivered under domestic thermal contracts.
Second quarter results include impairment charges of
$900.8 million, including
$718.6 million primarily related to
certain producing and non-producing Australian metallurgical coal
assets, and $182.2 million from U.S.
assets held for sale and not affiliated with Peabody's mining
segment operations. Results also include $8.3 million in debt extinguishment charges from
refinancing the remaining 2016 Senior Notes in the second
quarter. Peabody's second quarter tax benefit totaled
$93.1 million compared to a tax
provision of $4.0 million in the
prior period, primarily due to a benefit allocated to results from
continuing operations related to the tax effects of items credited
directly to other comprehensive income.
Loss from Continuing Operations totaled $(1.01) billion compared to $(72.0) million in the prior year. Diluted
Loss from Continuing Operations totaled $(3.71) per share and Adjusted Diluted EPS
totaled $(0.65).
Second quarter operating cash flow was $(59.8) million, including $8.2 million related to make-whole premiums from
the retirement of the remaining 2016 Senior Notes, while
capital spending was $25.8
million. Cash balances totaled $487.1 million at the end of June, with total
liquidity of $2.1 billion, including
$1.5 billion available under the
company's fully committed credit facility.
GLOBAL COAL MARKETS
In the second quarter, seaborne and U.S. coal pricing declined,
reflecting slower global economic growth, declining steel demand
and weak U.S. natural gas prices. In response, U.S. and
seaborne supply reductions are occurring, with shipment declines
accelerating in several regions.
Within seaborne metallurgical coal markets, the third quarter
metallurgical coal benchmark for high-quality low-vol hard coking
coal declined 15 percent to $93 per
tonne as slowing global economic growth and declining Chinese steel
demand offset growing metallurgical coal imports in India and additional supply reductions.
The third quarter low-vol PCI benchmark fell from $92.50 to $73 per tonne on reduced blast furnace
capacity utilization of 72 percent. In seaborne thermal
markets, prices remain constrained due to a 3 percent decline in
China's thermal coal generation
through June, and a corresponding 51 million tonne decline in
China's thermal imports that more
than offset import growth of 23 million tonnes in India.
Third-party reports suggest that, at current prices, nearly 80
percent of Chinese metallurgical coal producers are not covering
cash costs. The company also believes that limited industry
capital investment in recent years will prove insufficient to
maintain seaborne metallurgical coal production levels over
time. Additional metallurgical coal production curtailments
are occurring, and seaborne supply is now expected to decline 15
million tonnes to under 300 million tonnes in 2015. At the
same time, thermal coal supply cutbacks are continuing.
Through June, Indonesian exports were down 17 percent, U.S.
thermal coal exports were down 39 percent and additional
global cutbacks are expected.
Within U.S. coal markets, coal generation declined 14 percent
through June due to lower natural gas prices. Peabody
believes U.S. coal demand will decline 90 to 100 million tons in
2015, with coal projected to comprise approximately 35 percent of
total U.S. generation. U.S. coal exports declined 14 million
tons through June, and are anticipated to drop by 30 to 35 million
tons in 2015. U.S. coal supply decreased 13 percent in the
second quarter, and additional production cutbacks are expected in
the second half of the year.
Recently, the U.S. Supreme Court invalidated the Mercury and Air
Toxics Standards rule regulating power plant emissions, and
required the Environmental Protection Agency to properly consider
the cost of the regulation. While this ruling is not expected
to materially impact planned plant closures or near-term coal
demand, the company believes the decision sends a strong message
regarding regulatory overreach that will prove beneficial when
considering proposed regulations impacting U.S. coal
generation.
By 2017, Peabody expects that approximately 55 gigawatts of U.S.
coal-fueled generation will retire, with the majority occurring in
2015, and that 250 gigawatts of coal-fueled generation will remain
online. While total U.S. utility coal demand is expected to
decline approximately 30 to 50 million tons between 2014 and 2017
on lower assumed natural gas prices, PRB and Illinois Basin demand is expected to more than
overcome 2015 declines by 2017 as these regions retain a
fundamental delivered cost advantage over other U.S. coal
basins.
PEABODY ADVANCING IMPROVEMENT ACROSS FOUR AREAS OF
MANAGEMENT
Peabody continues to take aggressive action to improve the
organization and respond to current market conditions across four
key areas of management emphasis:
- Operational Excellence: Peabody is implementing a
series of actions at its operations to increase productivity,
decrease costs, improve cash flows and reduce coking coal and
low-vol PCI volumes given current market conditions. The
company now targets a workforce reduction of more than 300
positions across multiple mines in Australia, and is lowering metallurgical
production by approximately 3 million tons per year. Actions
include reducing annualized metallurgical coal production by 1.5
million tons at the North Goonyella Mine, 1.2 million tons at the
Coppabella Mine and 600,000 tons at the Metropolitan Mine.
The company reduced its 2015 metallurgical sales target by
approximately 1 million tons to reflect the remaining impact of
lower production and inventory sales.
- Lean Organization: The company initiated the
reduction of approximately 250 corporate and regional positions to
create a leaner organization and lower costs. When fully
implemented later this year, these reductions are expected to save
$40 to $45 million per year.
These reductions represent approximately 25 percent of corporate
and regional support positions, and the majority of the reductions
occurred in the second quarter. Actions also include
delayering the organization and closing offices in Evansville, Indiana and Gillette,
Wyoming. After a 30 percent reduction in second quarter
SG&A to the lowest level in eight years, Peabody is targeting
more than a 20 percent improvement in 2015 SG&A.
- Portfolio Management: Peabody completed
approximately $35 million of non-core
asset sales in the U.S. and Australia over the last several months.
The company is aggressively reviewing additional portfolio
optimization opportunities, and will continue to increase
divestment actions in the second half of 2015 through sales of
non-core reserves, surface lands and other properties.
- Financial Strength: The company is pursuing
multiple avenues to maximize near-term liquidity and is targeting
reduced leverage over time. Peabody benefits from lower
annual cash payments in 2017 related to completion of PRB reserve
installments, lower health benefit trust payments, and potential
lower currency rates and fuel prices as legacy hedge transactions
roll off. The company also has no significant maturities
until late 2018. As part of the plan to maximize liquidity,
the board of directors decided to suspend the company's quarterly
dividend on shares of its common stock, and will evaluate whether
to reinstate the dividend in the future as circumstances
warrant. The board of directors also authorized a reverse
split of common stock, subject to shareholder approval. If
the reverse stock split is implemented, the number of authorized,
issued and outstanding shares of common stock would be reduced in
accordance with the exchange ratio selected by the company, among
five alternative ratios between 1-for-8 and 1-for-20 as approved by
shareholders.
OUTLOOK
Peabody's 2015 U.S. production is fully priced with 2016 U.S.
production approximately 30 to 40 percent unpriced based on 2015
production levels. During the second quarter, the company
priced 14 million tons of PRB coal for delivery in 2016, and now
has 89 million tons of PRB priced at $14.23 next year.
U.S. costs per ton are targeted to improve 3 to 5 percent in
2015 as a result of a higher percentage of PRB shipments, lower
fuel costs and ongoing cost containment. PRB costs are
targeted to remain at approximately the same level as 2014,
resulting in a modest PRB margin improvement. U.S. revenues
per ton are targeted to decline 3 to 5 percent in 2015 as a result
of change in mix and roll off of higher sales contracts compared to
2014, primarily in the Midwest. Australian costs per ton are
targeted to be nearly 20 percent below 2014 levels due to cost
reduction initiatives, sales mix, and lower currency and fuel
expenses. Selling and Administrative Expenses are targeted to
be more than 20 percent below 2014 levels due to implementation of
a leaner organizational structure and lower third-party
spending.
Compared with the second quarter, third quarter Adjusted EBITDA
is expected to reflect lower seaborne metallurgical coal pricing,
higher PRB shipments as a result of lessened weather-related
impacts, and a longwall move in Colorado.
|
New
2015 Guidance
|
Prior Guidance
(where changed)
|
Sales Volumes
(in million tons)
U.S.
Australia
Trading &
Brokerage
Total
|
180 – 190
34 – 36
11 – 19
225 – 245
|
35 – 37
20 – 28
235 – 255
|
|
|
|
U.S.
Operations
Revenue Per Ton (vs
2014)
Costs Per Ton (vs
2014)
|
$19.95 –
$20.40
$14.65 –
$15.00
|
3% – 5%
lower
3% – 5%
lower
|
|
|
|
Australia
Operations
|
|
|
Metallurgical Coal
Sales
Export Thermal Coal
Sales
Domestic Thermal Coal
Sales
Costs Per
Ton
|
14 – 15 million
tons
12 – 13 million
tons
8 million
tons
$53 – $56
|
15 – 16 million
tons
|
|
|
|
Selling &
Administrative
Expenses
|
$170 – $180
million
|
|
|
|
|
Depreciation,
Depletion and Amortization
|
$580 – $620
million
|
$600 – $640
million
|
|
|
|
Capital
Expenditures
|
$160 – $170
million
|
$170 – $190
million
|
|
Notes: Peabody
classifies its Australian mines with the Australian Metallurgical
or Thermal Mining segments based on the primary customer base and
reserve type. A small portion of the coal mined by the
Australian Metallurgical Mining segment is of a thermal grade and
vice versa. Also, Peabody may market some of its
metallurgical coal products as a thermal product from time to time
depending on market conditions.
|
By early 2017, Peabody expects to realize an improvement in
annual cash outlays as a result of $275
million in lower cash payments related to PRB reserve
installments, $75 million in lower
cash payments related to health benefit trust payments, and lower
currency and fuel hedge losses as legacy hedge transactions roll
off. Peabody has reduced its currency hedge program, and the
table below displays the declining hedge positions over time using
forward diesel fuel prices and exchange rates as of June 30, 2015.
Currency and Fuel
Hedge Position
|
Potential lower
costs compared to 2015 and sensitivities are in millions of U.S.
dollars
|
|
Australian Dollar
Hedging
|
2015
|
2016
|
2017
|
Percent Hedged - from
6/30/15
|
56%
|
42%
|
22%
|
Hedge Rate
|
$0.96
|
$0.92
|
$0.88
|
All-in Rate - full
year
|
$0.89
|
$0.83
|
$0.78
|
Potential Lower Costs
Compared to 2015
|
|
$161
|
$277
|
|
|
|
|
Fuel
Hedging
|
2015
|
2016
|
2017
|
Percent Hedged - from
6/30/15
|
90%
|
64%
|
44%
|
Hedge Price (per
barrel equivalent)
|
$84
|
$85
|
$79
|
All-in Price (per
barrel equivalent) - full year
|
$82
|
$75
|
$70
|
Potential Lower Costs
Compared to 2015
|
|
$26
|
$44
|
Total Potential
Lower Costs Compared to 2015
|
|
$187
|
$321
|
|
Cost
Sensitivity
|
|
|
|
Unhedged AUD position
sensitivity to $0.05 move
|
$27
|
$69
|
$93
|
Unhedged Fuel
position sensitivity to $10 bbl move
|
$3
|
$16
|
$24
|
|
|
|
|
Notes: 2015 hedge
percentages and hedge rate/price are for July through December
2015; 2015 all-in rate/price incorporates the full year for
year-on-year comparisons. Estimated cumulative savings and
cost sensitivities based on 2015 estimated requirements of ~$2.4
billion AUD and ~155 million gallons of diesel fuel
usage.
|
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. 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 July 28, 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; including, without limitation, the actions we are
implementing to improve our organization and respond to current
market conditions; 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; including our ability to successfully access the
commercial surety market; our ability to remain eligible for
self-bonding; 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; any additional
liabilities or obligations that we may have as a result of the
Patriot bankruptcy, including, without limitation, as a result of
litigation filed by third parties in relation to that bankruptcy;
litigation, including claims not yet asserted; terrorist attacks or
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
and Six Months Ended Jun. 30, 2015 and 2014
|
(In Millions, Except
Per Share Data)
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
Six Months
Ended
|
|
|
|
Jun.
|
|
Jun.
|
|
Jun.
|
|
Jun.
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
Tons Sold
|
|
51.9
|
|
|
61.7
|
|
|
112.5
|
|
|
123.0
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
1,339.3
|
|
|
$
|
1,758.0
|
|
|
$
|
2,877.2
|
|
|
$
|
3,384.8
|
|
Operating Costs and
Expenses (1)
|
|
1,198.8
|
|
|
1,467.6
|
|
|
2,520.4
|
|
|
2,862.4
|
|
Depreciation,
Depletion and Amortization
|
|
147.1
|
|
|
163.1
|
|
|
294.6
|
|
|
320.3
|
|
Asset Retirement
Obligation Expenses
|
|
13.9
|
|
|
15.9
|
|
|
28.1
|
|
|
31.5
|
|
Selling and
Administrative Expenses
|
|
41.6
|
|
|
59.2
|
|
|
91.0
|
|
|
118.7
|
|
Restructuring
Charges
|
|
21.2
|
|
|
—
|
|
|
21.2
|
|
|
—
|
|
Other Operating
(Income) Loss:
|
|
|
|
|
|
|
|
|
Net Gain on Disposal
of Assets
|
|
(12.2)
|
|
|
(2.2)
|
|
|
(12.3)
|
|
|
(12.0)
|
|
Asset
Impairment
|
|
900.8
|
|
|
—
|
|
|
900.8
|
|
|
—
|
|
Loss from Equity
Affiliates:
|
|
|
|
|
|
|
|
|
Results of
Operations
|
|
2.9
|
|
|
20.3
|
|
|
4.3
|
|
|
25.7
|
|
Change in
Deferred Tax Asset Valuation Allowance
|
|
(1.1)
|
|
|
—
|
|
|
(0.8)
|
|
|
—
|
|
Amortization of
Basis Difference
|
|
2.1
|
|
|
1.3
|
|
|
3.5
|
|
|
2.5
|
|
Loss from Equity
Affiliates
|
|
3.9
|
|
|
21.6
|
|
|
7.0
|
|
|
28.2
|
|
Operating (Loss)
Profit
|
|
(975.8)
|
|
|
32.8
|
|
|
(973.6)
|
|
|
35.7
|
|
Interest
Income
|
|
(2.7)
|
|
|
(4.4)
|
|
|
(5.2)
|
|
|
(8.0)
|
|
Interest
Expense:
|
|
|
|
|
|
|
|
|
Interest
Expense
|
|
118.9
|
|
|
103.6
|
|
|
225.5
|
|
|
206.9
|
|
Loss on Debt
Extinguishment
|
|
8.3
|
|
|
1.6
|
|
|
67.8
|
|
|
1.6
|
|
Interest
Expense
|
|
127.2
|
|
|
105.2
|
|
|
293.3
|
|
|
208.5
|
|
Loss from Continuing
Operations Before Income Taxes
|
|
(1,100.3)
|
|
|
(68.0)
|
|
|
(1,261.7)
|
|
|
(164.8)
|
|
Income Tax (Benefit)
Provision:
|
|
|
|
|
|
|
|
|
(Benefit)
Provision
|
|
(25.7)
|
|
|
5.3
|
|
|
(22.5)
|
|
|
(45.8)
|
|
Tax Benefit Related
to Asset Impairment
|
|
(67.4)
|
|
|
—
|
|
|
(67.4)
|
|
|
—
|
|
Remeasurement Benefit
Related to Foreign Income Tax Accounts
|
|
—
|
|
|
(1.3)
|
|
|
(0.2)
|
|
|
(2.7)
|
|
Income Tax
(Benefit) Provision
|
|
(93.1)
|
|
|
4.0
|
|
|
(90.1)
|
|
|
(48.5)
|
|
Loss from Continuing
Operations, Net of Income Taxes
|
|
(1,007.2)
|
|
|
(72.0)
|
|
|
(1,171.6)
|
|
|
(116.3)
|
|
(Loss) Income from
Discontinued Operations, Net of Income Taxes
|
|
(36.3)
|
|
|
0.8
|
|
|
(45.2)
|
|
|
1.0
|
|
Net Loss
|
|
(1,043.5)
|
|
|
(71.2)
|
|
|
(1,216.8)
|
|
|
(115.3)
|
|
Less: Net Income
Attributable to Noncontrolling Interests
|
|
1.8
|
|
|
2.1
|
|
|
5.1
|
|
|
6.5
|
|
Net Loss Attributable
to Common Stockholders
|
|
$
|
(1,045.3)
|
|
|
$
|
(73.3)
|
|
|
$
|
(1,221.9)
|
|
|
$
|
(121.8)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
$
|
87.0
|
|
|
$
|
213.1
|
|
|
$
|
252.6
|
|
|
$
|
390.0
|
|
|
|
|
|
|
|
|
|
|
Diluted EPS - Loss
from Continuing Operations (2)(3)
|
|
$
|
(3.71)
|
|
|
$
|
(0.28)
|
|
|
$
|
(4.34)
|
|
|
$
|
(0.46)
|
|
|
|
|
|
|
|
|
|
|
Diluted EPS - Net
Loss Attributable to Common Stockholders (2)
|
|
$
|
(3.84)
|
|
|
$
|
(0.27)
|
|
|
$
|
(4.51)
|
|
|
$
|
(0.46)
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Diluted EPS
(2)
|
|
$
|
(0.65)
|
|
|
$
|
(0.28)
|
|
|
$
|
(1.27)
|
|
|
$
|
(0.47)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Excludes items shown
separately.
|
(2)
|
Weighted average
diluted shares outstanding were 272.3 million and 268.0 million for
the quarters ended Jun. 30, 2015 and 2014, respectively, and 271.2
million and 267.9 million for the six months ended Jun. 30, 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
and Six Months Ended Jun. 30, 2015 and 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
Six Months
Ended
|
|
|
|
Jun.
|
|
Jun.
|
|
Jun.
|
|
Jun.
|
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Revenue Summary (In
Millions)
|
|
|
|
|
|
|
|
|
|
U.S. Mining
Operations
|
|
$
|
822.3
|
|
|
$
|
1,031.2
|
|
|
$
|
1,787.3
|
|
|
$
|
2,016.2
|
|
|
|
Australian Mining
Operations
|
|
505.9
|
|
|
707.4
|
|
|
1,054.1
|
|
|
1,319.2
|
|
|
|
Trading and Brokerage
Operations
|
|
1.5
|
|
|
10.3
|
|
|
18.2
|
|
|
31.3
|
|
|
|
Other
|
|
9.6
|
|
|
9.1
|
|
|
17.6
|
|
|
18.1
|
|
|
|
Total
|
|
$
|
1,339.3
|
|
|
$
|
1,758.0
|
|
|
$
|
2,877.2
|
|
|
$
|
3,384.8
|
|
|
|
|
|
|
|
|
|
|
|
|
Tons Sold (In
Millions)
|
|
|
|
|
|
|
|
|
|
|
Powder River Basin
Mining Operations
|
|
30.4
|
|
|
34.1
|
|
|
67.6
|
|
|
69.8
|
|
|
|
Midwestern U.S.
Mining Operations
|
|
5.2
|
|
|
6.2
|
|
|
11.1
|
|
|
12.4
|
|
|
|
Western U.S. Mining
Operations
|
|
4.3
|
|
|
6.0
|
|
|
9.0
|
|
|
11.8
|
|
|
|
Australian
Metallurgical Mining Operations
|
|
4.0
|
|
|
4.8
|
|
|
7.7
|
|
|
7.9
|
|
|
|
Australian Thermal
Mining Operations
|
|
4.6
|
|
|
4.9
|
|
|
9.7
|
|
|
10.0
|
|
|
|
Trading and Brokerage
Operations
|
|
3.4
|
|
|
5.7
|
|
|
7.4
|
|
|
11.1
|
|
|
|
Total
|
|
51.9
|
|
|
61.7
|
|
|
112.5
|
|
|
123.0
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues per Ton -
Mining Operations
|
|
|
|
|
|
|
|
|
|
Powder River Basin
(1)
|
|
$
|
13.47
|
|
|
$
|
14.63
|
|
|
$
|
13.58
|
|
|
$
|
13.83
|
|
|
|
Midwestern
U.S.
|
|
46.09
|
|
|
49.09
|
|
|
46.60
|
|
|
49.03
|
|
|
|
Western
U.S.
|
|
39.36
|
|
|
38.09
|
|
|
38.67
|
|
|
37.58
|
|
|
|
Total - U.S.
(1)
|
|
20.55
|
|
|
22.27
|
|
|
20.35
|
|
|
21.44
|
|
|
|
Australian
Metallurgical
|
|
78.99
|
|
|
95.76
|
|
|
83.96
|
|
|
100.22
|
|
|
|
Australian
Thermal
|
|
41.99
|
|
|
50.95
|
|
|
42.37
|
|
|
52.90
|
|
|
|
Total -
Australia
|
|
58.96
|
|
|
73.16
|
|
|
60.77
|
|
|
73.77
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Costs per
Ton (2)
|
|
|
|
|
|
|
|
|
|
Powder River Basin
(1)
|
|
$
|
10.36
|
|
|
$
|
10.19
|
|
|
$
|
10.11
|
|
|
$
|
10.00
|
|
|
|
Midwestern
U.S.
|
|
33.34
|
|
|
37.84
|
|
|
33.46
|
|
|
36.98
|
|
|
|
Western
U.S.
|
|
27.84
|
|
|
26.33
|
|
|
27.38
|
|
|
26.62
|
|
|
|
Total - U.S.
(1)
|
|
15.27
|
|
|
15.97
|
|
|
14.85
|
|
|
15.63
|
|
|
|
Australian
Metallurgical
|
|
79.11
|
|
|
106.14
|
|
|
82.24
|
|
|
115.16
|
|
|
|
Australian
Thermal
|
|
29.91
|
|
|
39.65
|
|
|
31.57
|
|
|
38.48
|
|
|
|
Total -
Australia
|
|
52.48
|
|
|
72.61
|
|
|
53.99
|
|
|
72.30
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Margin per Ton
(2)
|
|
|
|
|
|
|
|
|
|
Powder River Basin
(1)
|
|
$
|
3.11
|
|
|
$
|
4.44
|
|
|
$
|
3.47
|
|
|
$
|
3.83
|
|
|
|
Midwestern
U.S.
|
|
12.75
|
|
|
11.25
|
|
|
13.14
|
|
|
12.05
|
|
|
|
Western
U.S.
|
|
11.52
|
|
|
11.76
|
|
|
11.29
|
|
|
10.96
|
|
|
|
Total - U.S.
(1)
|
|
5.28
|
|
|
6.30
|
|
|
5.50
|
|
|
5.81
|
|
|
|
Australian
Metallurgical
|
|
(0.12)
|
|
|
(10.38)
|
|
|
1.72
|
|
|
(14.94)
|
|
|
|
Australian
Thermal
|
|
12.08
|
|
|
11.30
|
|
|
10.80
|
|
|
14.42
|
|
|
|
Total -
Australia
|
|
6.48
|
|
|
0.55
|
|
|
6.78
|
|
|
1.47
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Supplemental
Financial Data (In Millions)
|
|
|
|
|
|
|
|
|
Adjusted EBITDA -
U.S. Mining
|
|
$
|
211.5
|
|
|
$
|
291.6
|
|
|
$
|
483.0
|
|
|
$
|
546.2
|
|
Adjusted EBITDA -
Australian Mining
|
|
55.8
|
|
|
5.3
|
|
|
117.7
|
|
|
26.3
|
|
Adjusted EBITDA -
Trading and Brokerage
|
|
(2.8)
|
|
|
6.3
|
|
|
1.0
|
|
|
4.4
|
|
Adjusted EBITDA -
Resource Management (3)
|
|
9.9
|
|
|
1.7
|
|
|
11.1
|
|
|
11.2
|
|
Corporate Hedging
Results
|
|
(105.9)
|
|
|
7.2
|
|
|
(209.7)
|
|
|
(14.0)
|
|
Selling and
Administrative Expenses
|
|
(41.6)
|
|
|
(59.2)
|
|
|
(91.0)
|
|
|
(118.7)
|
|
Restructuring
Charges
|
|
(21.2)
|
|
|
—
|
|
|
(21.2)
|
|
|
—
|
|
Other Operating
Costs, Net (4)
|
|
(18.7)
|
|
|
(39.8)
|
|
|
(38.3)
|
|
|
(65.4)
|
|
Adjusted
EBITDA
|
|
87.0
|
|
|
213.1
|
|
|
252.6
|
|
|
390.0
|
|
Operating Cash
Flows
|
|
(59.8)
|
|
|
26.2
|
|
|
(56.4)
|
|
|
80.3
|
|
Acquisitions of
Property, Plant and Equipment
|
|
25.8
|
|
|
40.3
|
|
|
50.9
|
|
|
64.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
The finalization of
pricing under a customer sales agreement resulted in additional
Powder River Basin revenues per ton, operating costs per ton, and
gross margin per ton of $1.27, $0.24, and $1.03, respectively for
the quarter ended Jun 30, 2014, and $0.48, $0.09, and $0.39,
respectively, for the six months ended Jun. 30, 2014. The
impact on Total - U.S. revenues per ton, operating costs per ton,
and gross margin per ton was $0.93, $0.17, and $0.76, respectively,
for the quarter ended Jun. 30, 2014, and $0.36, $0.07, and $0.29,
respectively, for the six months ended Jun. 30, 2014.
|
(2)
|
Includes
revenue-based production taxes and royalties; excludes
depreciation, depletion and amortization; asset retirement
obligation expenses; selling and administrative expenses;
restructuring charges; asset impairment; and certain other costs
related to post-mining activities.
|
(3)
|
Includes certain
asset sales, property management costs and revenues, and coal
royalty expense.
|
(4)
|
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 Jun. 30,
2015 and Dec. 31, 2014
|
|
|
|
|
|
(Dollars In
Millions)
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
June 30,
2015
|
|
Dec. 31,
2014
|
Cash and Cash
Equivalents
|
|
$
|
487.1
|
|
|
$
|
298.0
|
|
Accounts Receivable,
Net
|
|
301.7
|
|
|
563.1
|
|
Inventories
|
|
395.6
|
|
|
406.5
|
|
Deferred Income
Taxes
|
|
78.4
|
|
|
80.0
|
|
Other Current
Assets
|
|
431.2
|
|
|
363.4
|
|
Total Current
Assets
|
|
1,694.0
|
|
|
1,711.0
|
|
Property, Plant,
Equipment and Mine Development, Net
|
|
9,494.0
|
|
|
10,577.3
|
|
Deferred Income
Taxes
|
|
1.5
|
|
|
0.7
|
|
Investments and Other
Assets
|
|
671.9
|
|
|
902.1
|
|
Total Assets
|
|
$
|
11,861.4
|
|
|
$
|
13,191.1
|
|
|
|
|
|
|
Current Portion of
Long-Term Debt
|
|
$
|
20.4
|
|
|
$
|
21.2
|
|
Accounts Payable and
Accrued Expenses
|
|
1,486.7
|
|
|
1,809.2
|
|
Other Current
Liabilities
|
|
21.3
|
|
|
32.7
|
|
Total Current
Liabilities
|
|
1,528.4
|
|
|
1,863.1
|
|
Long-Term Debt, Less
Current Portion
|
|
6,284.8
|
|
|
5,965.6
|
|
Deferred Income
Taxes
|
|
87.9
|
|
|
89.1
|
|
Other Noncurrent
Liabilities
|
|
2,304.3
|
|
|
2,546.8
|
|
Total
Liabilities
|
|
10,205.4
|
|
|
10,464.6
|
|
Stockholders'
Equity
|
|
1,656.0
|
|
|
2,726.5
|
|
Total Liabilities and Stockholders' Equity
|
|
$
|
11,861.4
|
|
|
$
|
13,191.1
|
|
|
|
|
|
|
|
|
|
|
|
This information
is intended to be reviewed in conjunction with the company's
filings with the SEC.
|
|
|
|
|
|
Reconciliation of
Non-GAAP Financial Measures (Unaudited)
|
For the Quarters
and Six Months Ended Jun. 30, 2015 and 2014
|
|
(Dollars In Millions,
Except Per Share Data)
|
|
Quarter
Ended
|
|
Six Months
Ended
|
|
|
|
Jun.
|
|
Jun.
|
|
Jun.
|
|
Jun.
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
$
|
87.0
|
|
|
$
|
213.1
|
|
|
$
|
252.6
|
|
|
$
|
390.0
|
|
|
Depreciation,
Depletion and Amortization
|
|
147.1
|
|
|
163.1
|
|
|
294.6
|
|
|
320.3
|
|
|
Asset Retirement
Obligation Expenses
|
|
13.9
|
|
|
15.9
|
|
|
28.1
|
|
|
31.5
|
|
|
Change in Deferred
Tax Asset Valuation Allowance Related to Equity
Affiliates
|
|
(1.1)
|
|
|
—
|
|
|
(0.8)
|
|
|
—
|
|
|
Amortization of Basis
Difference Related to Equity Affiliates
|
|
2.1
|
|
|
1.3
|
|
|
3.5
|
|
|
2.5
|
|
|
Interest
Income
|
|
(2.7)
|
|
|
(4.4)
|
|
|
(5.2)
|
|
|
(8.0)
|
|
|
Interest
Expense
|
|
127.2
|
|
|
105.2
|
|
|
293.3
|
|
|
208.5
|
|
|
Income Tax (Benefit)
Provision, Excluding Tax Items Shown Separately Below
|
|
(25.7)
|
|
|
5.3
|
|
|
(22.5)
|
|
|
(45.8)
|
|
Adjusted Loss from
Continuing Operations (1)
|
|
(173.8)
|
|
|
(73.3)
|
|
|
(338.4)
|
|
|
(119.0)
|
|
|
Asset
Impairment
|
|
900.8
|
|
|
—
|
|
|
900.8
|
|
|
—
|
|
|
Tax Benefit Related
to Asset Impairment
|
|
(67.4)
|
|
|
—
|
|
|
(67.4)
|
|
|
—
|
|
|
Remeasurement Benefit
Related to Foreign Income Tax Accounts
|
|
—
|
|
|
(1.3)
|
|
|
(0.2)
|
|
|
(2.7)
|
|
|
|
|
|
|
|
|
|
|
|
Loss from Continuing
Operations, Net of Income Taxes
|
|
$
|
(1,007.2)
|
|
|
$
|
(72.0)
|
|
|
$
|
(1,171.6)
|
|
|
$
|
(116.3)
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
Attributable to Noncontrolling Interests
|
|
$
|
1.8
|
|
|
$
|
2.1
|
|
|
$
|
5.1
|
|
|
$
|
6.5
|
|
|
|
|
|
|
|
|
|
|
|
Diluted EPS - Loss
from Continuing Operations (2)
|
|
$
|
(3.71)
|
|
|
$
|
(0.28)
|
|
|
$
|
(4.34)
|
|
|
$
|
(0.46)
|
|
|
Asset Impairment, Net
of Income Taxes
|
|
3.06
|
|
|
—
|
|
|
3.07
|
|
|
—
|
|
|
Remeasurement Benefit
Related to Foreign Income Tax Accounts
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.01)
|
|
Adjusted Diluted
EPS
|
|
$
|
(0.65)
|
|
|
$
|
(0.28)
|
|
|
$
|
(1.27)
|
|
|
$
|
(0.47)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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.
|
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SOURCE Peabody Energy