• Reports first quarter net income of $127.0 million, or $9.59 per diluted share
  • Generates Adjusted EBITDA of $189.6 million for the quarter

BRISTOL, Tenn., May 6, 2024 /PRNewswire/ -- Alpha Metallurgical Resources, Inc. (NYSE: AMR), a leading U.S. supplier of metallurgical products for the steel industry, today reported financial results for the first quarter ending March 31, 2024.

(PRNewsfoto/Alpha Metallurgical Resources, Inc.)


(millions, except per share)


Three months ended


Mar. 31, 2024

Dec. 31, 2023

Mar. 31, 2023

Net income

$127.0

$176.0

$270.8

Net income per diluted share

$9.59

$12.88

$17.01

Adjusted EBITDA(1)

$189.6

$266.3

$354.4

Operating cash flow

$196.1

$199.4

$177.4

Capital expenditures

($63.6)

($61.5)

($74.2)

Tons of coal sold

4.4

4.6

3.9

__________________________________

1. These are non-GAAP financial measures. A reconciliation of Net Income to Adjusted EBITDA is included in tables accompanying the financial schedules.

"Despite challenges and softening coal market conditions toward the end of Q1, we are reporting another solid quarter of performance thanks to the diligence of our teams throughout the organization," said Andy Eidson, Alpha's chief executive officer. "While further market deterioration has occurred in the weeks since quarter-close, Alpha remains well positioned to continue adapting to and weathering these market realities and the resulting volatility."

Financial Performance

Alpha reported net income of $127.0 million, or $9.59 per diluted share, for the first quarter 2024, as compared to net income of $176.0 million, or $12.88 per diluted share, in the fourth quarter 2023.

Total Adjusted EBITDA was $189.6 million for the first quarter, compared to $266.3 million in the fourth quarter 2023. 

Coal Revenues


(millions)


Three months ended


Mar. 31, 2024

Dec. 31, 2023

Met Segment

$861.3

$954.2

Met Segment (excl. freight & handling)(1)

$727.6

$834.6



Tons Sold

(millions)


Three months ended


Mar. 31, 2024

Dec. 31, 2023

Met Segment

4.4

4.5

__________________________________

1.

Represents Non-GAAP coal revenues which is defined and reconciled under "Non-GAAP Financial Measures" and "Results of Operations."

Coal Sales Realization(1)


(per ton)


Three months ended


Mar. 31, 2024

Dec. 31, 2023

Met Segment

$166.68

$183.76

__________________________________

1.

Represents Non-GAAP coal sales realization which is defined and reconciled under "Non-GAAP Financial Measures" and "Results of Operations."

First quarter net realized pricing for the Met segment was $166.68 per ton.

The table below provides a breakdown of our Met segment coal sold in the first quarter by pricing mechanism.


(in millions, except per ton data)

Met Segment Sales

Three months ended Mar. 31, 2024


Tons Sold

Coal Revenues

Realization/ton(1)

% of Met Tons Sold

Export - Other Pricing Mechanisms

2.0

$344.6

$172.24

51 %

Domestic

0.9

$149.6

$164.89

23 %

Export - Australian Indexed

1.1

$201.4

$193.70

26 %

Total Met Coal Revenues

4.0

$695.6

$176.20

100 %

Thermal Coal Revenues

0.4

$32.0

$76.53


Total Met Segment Coal Revenues
(excl. freight & handling)(1)

4.4

$727.6

$166.68


__________________________________

1.

Represents Non-GAAP coal sales realization which is defined and reconciled under "Non-GAAP Financial Measures" and "Results of Operations."

Cost of Coal Sales


(in millions, except per ton data)


Three months ended


Mar. 31, 2024

Dec. 31, 2023 (2)

Met Segment

$648.3

$662.5

Met Segment (excl. freight & handling/idle)(1)

$504.8

$540.5




(per ton)

Met Segment(1)

$115.65

$119.00

__________________________________

1.

Represents Non-GAAP cost of coal sales and Non-GAAP cost of coal sales per ton which is defined and reconciled under "Non-GAAP Financial Measures" and "Results of Operations."

2.

For comparability purposes, certain immaterial segment information for the three months ended December 31, 2023 has been recast to conform to the current year presentation.

Alpha's Met segment cost of coal sales decreased to an average of $115.65 per ton in the first quarter, compared to $119.00 per ton in the fourth quarter 2023.

Liquidity and Capital Resources

Cash provided by operating activities in the first quarter decreased to $196.1 million as compared to $199.4 million in the fourth quarter 2023. Capital expenditures for the first quarter were $63.6 million compared to $61.5 million for the fourth quarter 2023.

As of March 31, 2024, the company had total liquidity of $288.1 million, including cash and cash equivalents of $269.4 million and $93.7 million of unused availability under the ABL, partially offset by a minimum required liquidity of $75.0 million as required by the ABL. As of March 31, 2024, the company had no borrowings and $61.3 million in letters of credit outstanding under the ABL. Total long-term debt, including the current portion of long-term debt as of March 31, 2024, was $9.4 million and consisted primarily of equipment financing obligations.

Share Repurchase Program

As previously announced, Alpha's board of directors authorized a share repurchase program allowing for the expenditure of up to $1.5 billion for the repurchase of the company's common stock. As of April 30, 2024, the company has acquired approximately 6.6 million shares of common stock at a cost of approximately $1.1 billion, or approximately $165.74 per share. The number of common stock shares outstanding as of April 30, 2024 was 13,007,215. The outstanding share count does not include the potentially dilutive effect of unvested equity awards.

The timing and amount of share repurchases will continue to be determined by the company's management based on its evaluation of market conditions, the trading price of the stock, applicable legal requirements, compliance with the provisions of the company's debt agreements, and other factors.

Results of Alpha's 2024 Annual Meeting of Stockholders

The company's annual meeting of stockholders was held on May 2, 2024, and stockholders elected all seven members of Alpha's board of directors to one-year terms. Stockholders also approved an amendment to the company's certificate of incorporation that replaces stockholder supermajority voting requirements with majority voting requirements. The complete voting results from the annual meeting have been filed with the Securities and Exchange Commission on Form 8-K. 

2024 Guidance Adjustments and Performance Update

Alpha is increasing its full-year guidance for idle operations expense to between $25 million and $33 million, up from the previously announced range of $18 million to $28 million. Additionally, the company is reducing its 2024 tax rate guidance to a range of 10% to 15%, down from the prior range of 12% to 17%.

As of April 24, 2024, at the midpoint of guidance, Alpha has committed and priced approximately 49% of its metallurgical coal for the year at an average price of $168.26 per ton and 100% of thermal coal for the year at an average expected price of $76.10 per ton.


2024 Guidance

in millions of tons

Low

High

Metallurgical

15.5

16.5

Thermal

0.9

1.3

Met Segment - Total Shipments

16.4

17.8




Committed/Priced1,2,3

Committed

Average Price

Metallurgical - Domestic


$161.41

Metallurgical - Export


$175.50

Metallurgical Total

49 %

$168.26

Thermal

100 %

$76.10

Met Segment

53 %

$155.48




Committed/Unpriced1,3

Committed


Metallurgical Total

49 %


Thermal

— %


Met Segment

46 %





Costs per ton4

Low

High

Met Segment

$110.00

$116.00




In millions (except taxes)

Low

High

SG&A5

$60

$66

Idle Operations Expense

$25

$33

Net Cash Interest Income

$2

$8

DD&A

$140

$160

Capital Expenditures

$210

$240

Capital Contributions to Equity Affiliates6

$40

$50

Tax Rate

10 %

15 %


Notes: 



1.

Based on committed and priced coal shipments as of April 24, 2024. Committed percentage based on the midpoint of shipment guidance range.

2.

Actual average per-ton realizations on committed and priced tons recognized in future periods may vary based on actual freight expense in future periods relative to assumed freight expense embedded in projected average per-ton realizations.

3.

Includes estimates of future coal shipments based upon contract terms and anticipated delivery schedules. Actual coal shipments may vary from these estimates.

4.

Note: The Company is unable to present a quantitative reconciliation of its forward-looking non-GAAP cost of coal sales per ton sold financial measures to the most directly comparable GAAP measures without unreasonable efforts due to the inherent difficulty in forecasting and quantifying with reasonable accuracy significant items required for the reconciliation. The most directly comparable GAAP measure, GAAP cost of sales, is not accessible without unreasonable efforts on a forward-looking basis. The reconciling items include freight and handling costs, which are a component of GAAP cost of sales. Management is unable to predict without unreasonable efforts freight and handling costs due to uncertainty as to the end market and FOB point for uncommitted sales volumes and the final shipping point for export shipments. These amounts have varied historically and may continue to vary significantly from quarter to quarter and material changes to these items could have a significant effect on our future GAAP results.

5.

Excludes expenses related to non-cash stock compensation and non-recurring expenses.

6.

Includes contributions to fund normal operations at our DTA export facility and expected capital investments related to the facility upgrades.



Conference Call

The company plans to hold a conference call regarding its first quarter results on May 6, 2024, at 10:00 a.m. Eastern time. The conference call will be available live on the investor section of the company's website at https://alphametresources.com/investors. Analysts who would like to participate in the conference call should dial 877-407-0832 (domestic toll-free) or 201-689-8433 (international) approximately 15 minutes prior to start time.

About Alpha Metallurgical Resources

Alpha Metallurgical Resources (NYSE: AMR) is a Tennessee-based mining company with operations across Virginia and West Virginia. With customers across the globe, high-quality reserves and significant port capacity, Alpha reliably supplies metallurgical products to the steel industry. For more information, visit www.AlphaMetResources.com.

Forward-Looking Statements

This news release includes forward-looking statements. These forward-looking statements are based on Alpha's expectations and beliefs concerning future events and involve risks and uncertainties that may cause actual results to differ materially from current expectations. These factors are difficult to predict accurately and may be beyond Alpha's control. Forward-looking statements in this news release or elsewhere speak only as of the date made. New uncertainties and risks arise from time to time, and it is impossible for Alpha to predict these events or how they may affect Alpha. Except as required by law, Alpha has no duty to, and does not intend to, update or revise the forward-looking statements in this news release or elsewhere after the date this release is issued. In light of these risks and uncertainties, investors should keep in mind that results, events or developments discussed in any forward-looking statement made in this news release may not occur. See Alpha's filings with the U.S. Securities and Exchange Commission for more information.

FINANCIAL TABLES FOLLOW

Non-GAAP Financial Measures

The discussion below contains "non-GAAP financial measures." These are financial measures that either exclude or include amounts that are not excluded or included in the most directly comparable measures calculated and presented in accordance with generally accepted accounting principles in the United States ("U.S. GAAP" or "GAAP"). Specifically, we make use of the non-GAAP financial measures "Adjusted EBITDA," "non-GAAP coal revenues," "non-GAAP cost of coal sales," and "non-GAAP coal margin." We use Adjusted EBITDA to measure the operating performance of our segments and allocate resources to the segments. Adjusted EBITDA does not purport to be an alternative to net income as a measure of operating performance or any other measure of operating results, financial performance, or liquidity presented in accordance with GAAP. Moreover, this measure is not calculated identically by all companies and therefore may not be comparable to similarly titled measures used by other companies. Adjusted EBITDA is presented because management believes it is a useful indicator of the financial performance of our coal operations. We use non-GAAP coal revenues to present coal revenues generated, excluding freight and handling fulfillment revenues. Non-GAAP coal sales realization per ton for our operations is calculated as non-GAAP coal revenues divided by tons sold. We use non-GAAP cost of coal sales to adjust cost of coal sales to remove freight and handling costs, depreciation, depletion and amortization - production (excluding the depreciation, depletion and amortization related to selling, general and administrative functions), accretion on asset retirement obligations, amortization of acquired intangibles, net, and idled and closed mine costs. Non-GAAP cost of coal sales per ton for our operations is calculated as non-GAAP cost of coal sales divided by tons sold. Non-GAAP coal margin per ton for our coal operations is calculated as non-GAAP coal sales realization per ton for our coal operations less non-GAAP cost of coal sales per ton for our coal operations. The presentation of these measures should not be considered in isolation, or as a substitute for analysis of our results as reported under GAAP.

Management uses non-GAAP financial measures to supplement GAAP results to provide a more complete understanding of the factors and trends affecting the business than GAAP results alone. The definition of these non-GAAP measures may be changed periodically by management to adjust for significant items important to an understanding of operating trends and to adjust for items that may not reflect the trend of future results by excluding transactions that are not indicative of our core operating performance. Furthermore, analogous measures are used by industry analysts to evaluate the Company's operating performance. Because not all companies use identical calculations, the presentations of these measures may not be comparable to other similarly titled measures of other companies and can differ significantly from company to company depending on long-term strategic decisions regarding capital structure, the tax jurisdictions in which companies operate, capital investments and other factors.

Included below are reconciliations of non-GAAP financial measures to GAAP financial measures. For comparability purposes, certain immaterial segment information for the three months ended March 31, 2023 and December 31, 2023 have been recast to conform to the current year presentation.

ALPHA METALLURGICAL RESOURCES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

(Amounts in thousands, except share and per share data)



Three Months Ended March 31,


2024


2023

Revenues:




Coal revenues

$              861,283


$              906,698

Other revenues

2,789


4,537

Total revenues

864,072


911,235

Costs and expenses:




Cost of coal sales (exclusive of items shown separately below)

648,313


539,137

Depreciation, depletion and amortization

40,701


29,423

Accretion on asset retirement obligations

6,143


6,377

Amortization of acquired intangibles, net

1,675


2,197

Selling, general and administrative expenses (exclusive of
depreciation, depletion and amortization shown separately above)

22,377


20,692

Other operating loss (income)

2,985


(1,092)

Total costs and expenses

722,194


596,734

Income from operations

141,878


314,501

Other (expense) income:




Interest expense

(1,086)


(1,720)

Interest income

3,971


1,518

Equity loss in affiliates

(1,640)


(1,748)

Miscellaneous (expense) income, net

(1,963)


631

Total other expense, net

(718)


(1,319)

Income before income taxes

141,160


313,182

Income tax expense

(14,165)


(42,411)

Net income

$              126,995


$              270,771





Basic income per common share

$                    9.77


$                  17.74

Diluted income per common share

$                    9.59


$                  17.01





Weighted average shares – basic

13,002,127


15,266,895

Weighted average shares – diluted

13,236,596


15,916,378

 

ALPHA METALLURGICAL RESOURCES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)

(Amounts in thousands, except share and per share data)



March 31, 2024


December 31, 2023

Assets




Current assets:




Cash and cash equivalents

$             269,386


$             268,207

Trade accounts receivable, net of allowance for credit losses of $217 and $234 as of
March 31, 2024 and December 31, 2023, respectively

526,222


509,682

Inventories, net

246,033


231,344

Prepaid expenses and other current assets

34,868


39,064

Total current assets

1,076,509


1,048,297

Property, plant, and equipment, net of accumulated depreciation and amortization of
$588,735 and $558,905 as of March 31, 2024 and December 31, 2023, respectively

607,637


588,992

Owned and leased mineral rights, net of accumulated depletion and amortization of
$106,429 and $99,826 as of March 31, 2024 and December 31, 2023, respectively

449,892


451,160

Other acquired intangibles, net of accumulated amortization of $40,218 and $38,543 as
of March 31, 2024 and December 31, 2023, respectively

44,904


46,579

Long-term restricted investments

38,055


40,597

Long-term restricted cash

121,927


115,918

Deferred income taxes

8,284


8,028

Other non-current assets

113,601


106,486

Total assets

$          2,460,809


$          2,406,057

Liabilities and Stockholders' Equity




Current liabilities:




Current portion of long-term debt

$                  3,392


$                  3,582

Trade accounts payable

151,453


128,836

Accrued expenses and other current liabilities

186,444


177,512

Total current liabilities

341,289


309,930

Long-term debt

6,034


6,792

Workers' compensation and black lung obligations

186,023


189,226

Pension obligations

101,800


101,908

Asset retirement obligations

172,758


166,509

Deferred income taxes

41,226


39,142

Other non-current liabilities

20,535


18,622

Total liabilities

869,665


832,129

Commitments and Contingencies




Stockholders' Equity




Preferred stock - par value $0.01, 5,000,000 shares authorized, none issued


Common stock - par value $0.01, 50,000,000 shares authorized, 22,371,165 issued and
13,007,215 outstanding at March 31, 2024 and 22,058,135 issued and 12,938,679
outstanding at December 31, 2023

224


221

Additional paid-in capital

830,536


834,482

Accumulated other comprehensive loss

(39,837)


(40,587)

Treasury stock, at cost: 9,363,950 shares at March 31, 2024 and 9,119,456 shares
at December 31, 2023

(1,295,639)


(1,189,715)

Retained earnings

2,095,860


1,969,527

Total stockholders' equity

1,591,144


1,573,928

Total liabilities and stockholders' equity

$          2,460,809


$          2,406,057

 

ALPHA METALLURGICAL RESOURCES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

(Amounts in thousands)



Three Months Ended March 31,


2024


2023

Operating activities:




Net income

$                126,995


$                270,771

Adjustments to reconcile net income to net cash provided by operating activities:




Depreciation, depletion and amortization

40,701


29,423

Amortization of acquired intangibles, net

1,675


2,197

Amortization of debt issuance costs and accretion of debt discount

280


534

Loss (gain) on disposal of assets

1,610


(2,363)

Accretion on asset retirement obligations

6,143


6,377

Employee benefit plans, net

3,833


3,261

Deferred income taxes

1,614


14,432

Stock-based compensation

2,769


3,034

Equity loss in affiliates

1,640


1,748

Other, net

(197)


126

Changes in operating assets and liabilities

9,011


(152,153)

Net cash provided by operating activities

196,074


177,387

Investing activities:




Capital expenditures

(63,618)


(74,248)

Proceeds on disposal of assets

287


3,478

Cash paid for business acquired


(11,919)

Purchases of investment securities

(7,230)


(141,750)

Sales and maturities of investment securities

10,172


204,660

Capital contributions to equity affiliates

(8,476)


(8,124)

Other, net

6


12

Net cash used in investing activities

(68,859)


(27,891)

Financing activities:




Principal repayments of long-term debt

(632)


(438)

Dividend and dividend equivalents paid

(3,000)


(85,979)

Common stock repurchases and related expenses

(116,089)


(144,919)

Other, net

(306)


(116)

Net cash used in financing activities

(120,027)


(231,452)

Net increase (decrease) in cash and cash equivalents and restricted cash

7,188


(81,956)

Cash and cash equivalents and restricted cash at beginning of period

384,125


355,394

Cash and cash equivalents and restricted cash at end of period

$                391,313


$                273,438





Supplemental disclosure of noncash investing and financing activities:




Financing leases and capital financing - equipment

$                          —


$                    1,753

Accrued capital expenditures

$                  14,525


$                  13,703

Accrued common stock repurchases and stock repurchase excise tax

$                    4,665


$                    5,995

Accrued dividend payable

$                        525


$                    8,973

The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the Condensed Consolidated Balance Sheets that sum to the total of the same such amounts shown in the Condensed Consolidated Statements of Cash Flows.


As of March 31,


2024


2023

Cash and cash equivalents

$                269,386


$                222,507

Long-term restricted cash

121,927


50,931

Total cash and cash equivalents and restricted cash shown in the Condensed
Consolidated Statements of Cash Flows

$                391,313


$                273,438

 

ALPHA METALLURGICAL RESOURCES, INC. AND SUBSIDIARIES

ADJUSTED EBITDA RECONCILIATION

(Amounts in thousands)



Three Months Ended


March 31, 2024


December 31, 2023


March 31, 2023

Net income

$             126,995


$             176,016


$             270,771

Interest expense

1,086


1,601


1,720

Interest income

(3,971)


(3,022)


(1,518)

Income tax expense

14,165


28,530


42,411

Depreciation, depletion and amortization

40,701


42,638


29,423

Non-cash stock compensation expense

2,769


9,339


3,034

Loss on extinguishment of debt


2,753


Accretion on asset retirement obligations

6,143


6,371


6,377

Amortization of acquired intangibles, net

1,675


2,065


2,197

Adjusted EBITDA

$             189,563


$             266,291


$             354,415

 

ALPHA METALLURGICAL RESOURCES, INC. AND SUBSIDIARIES

RESULTS OF OPERATIONS



Three Months Ended

(In thousands, except for per ton data)

March 31, 2024


December 31, 2023


March 31, 2023

Coal revenues

$              861,283


$              957,127


$              906,698

Coal revenues - All Other


(2,946)


(19,691)

Coal revenues - Met

861,283


954,181


887,007

Less: Freight and handling fulfillment revenues

(133,724)


(119,539)


(106,252)

Non-GAAP Coal revenues - Met

$              727,559


$              834,642


$              780,755

Non-GAAP Coal sales realization per ton - Met

$                166.68


$                183.76


$                208.93







Cost of coal sales (exclusive of items shown separately below)

$              648,313


$              668,879


$              539,137

Depreciation, depletion and amortization - production (1)

40,396


42,325


29,137

Accretion on asset retirement obligations

6,143


6,371


6,377

Amortization of acquired intangibles, net

1,675


2,065


2,197

Total Cost of coal sales

696,527


719,640


576,848

Total Cost of coal sales - All Other


(18,101)


(17,921)

Total Cost of coal sales - Met

696,527


701,539


558,927

Less: Freight and handling costs - Met

(133,724)


(119,539)


(106,252)

Less: Depreciation, depletion and amortization - production -
Met (1)

(40,396)


(33,295)


(28,879)

Less: Accretion on asset retirement obligations - Met

(6,143)


(3,721)


(3,722)

Less: Amortization of acquired intangibles, net - Met

(1,675)


(2,065)


(2,197)

Less: Idled and closed mine costs - Met

(9,775)


(2,435)


(4,709)

Non-GAAP Cost of coal sales - Met

$              504,814


$              540,484


$              413,168

Non-GAAP Cost of coal sales per ton - Met

$                115.65


$                119.00


$                110.56







GAAP Coal margin - Met

$              164,756


$              252,642


$              328,080

GAAP Coal margin per ton - Met

$                  37.74


$                  55.62


$                  87.79







Non GAAP Coal margin - Met

$              222,745


$              294,158


$              367,587

Non GAAP Coal margin per ton - Met

$                  51.03


$                  64.76


$                  98.36







Tons sold - Met

4,365


4,542


3,737

(1)

 Depreciation, depletion and amortization - production excludes the depreciation, depletion and amortization related to selling, general and administrative functions.

 


Three Months Ended March 31, 2024

(In thousands, except for per ton data)

Tons Sold


Coal Revenues


Non-GAAP
Coal sales
realization per
ton


% of Met Tons
Sold

Export - other pricing mechanisms

2,001


$       344,643


$         172.24


51 %

Domestic

907


149,559


$         164.89


23 %

Export - Australian indexed

1,040


201,443


$         193.70


26 %

Total Met segment - met coal

3,948


695,645


$         176.20


100 %

Met segment - thermal coal

417


31,914


$            76.53



Non-GAAP Coal revenues

4,365


727,559


$         166.68



Add: Freight and handling fulfillment revenues


133,724





Coal revenues

4,365


$       861,283





INVESTOR & MEDIA CONTACT: EMILY O'QUINN
InvestorRelations@AlphaMetResources.com
CorporateCommunications@AlphaMetResources.com
(423) 573-0369 

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SOURCE Alpha Metallurgical Resources, Inc.

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