BRISTOL, Tenn.,
March 18, 2020 /PRNewswire/ --
Contura Energy, Inc. (NYSE: CTRA), a leading U.S. coal supplier,
today reported results for the fourth quarter ending December 31, 2019.
|
(millions, except per
share)
|
|
Three months ended
|
|
Dec. 31, 2019(2)
|
Sept. 30, 2019(2)
|
Dec. 31, 2018(2)
|
Net (loss) income(3)
|
$(191.9)
|
$(43.6)
|
$155.9
|
Net (loss) income(3) per diluted
share
|
$(10.54)
|
$(2.29)
|
$9.85
|
Adjusted EBITDA(1)
|
$31.5
|
$40.0
|
$111.2
|
Operating cash
flow(4)
|
$(5.7)
|
$20.4
|
$(17.9)
|
Capital expenditures
|
$48.2
|
$60.3
|
$25.2
|
Tons of coal sold
|
5.7
|
5.8
|
5.5
|
|
|
|
|
1.
|
These are non-GAAP
financial measures. A reconciliation of Net Income to Adjusted
EBITDA is included in tables accompanying the financial
schedules.
|
2.
|
Excludes discontinued
operations.
|
3.
|
From continuing
operations.
|
4.
|
Includes discontinued
operations.
|
"As we recently announced, Contura made significant
progress in achieving operational efficiencies and overhead cost
containment improvements in the fourth quarter, and we remain
steadfastly committed to progress on these goals," said chairman
and chief executive officer, David
Stetson. "In the early months of 2020 we have continued to
build on the momentum, executing our strategy through a more nimble
operating culture that is yielding additional operational
productivity advances."
"In addition to achieving nearly a 10% increase in feet
per shift at our CAPP underground mines in the fourth quarter, we
are pleased to announce that the Road Fork 52 mine started
production as scheduled on February
26," said Jason Whitehead,
Contura's chief operating officer. "This low vol met mine, which we
expect to largely serve as replacement tons for existing operations
that are mining out, has annual production capacity up to 1.3
million tons a year with expected cost of coal sales of
approximately $70 per
ton."
Financial Performance
Contura reported a net loss from continuing operations of
$191.9 million, or $10.54 per diluted share, for the fourth quarter
2019. The fourth quarter loss includes a pre-tax non-cash asset
impairment charge of $60.5 million
and a goodwill impairment of $124.4
million. In the third quarter 2019, the company had a net
loss from continuing operations of $43.6
million or $2.29 per diluted
share.
Total Adjusted EBITDA was $31.5
million for the fourth quarter, compared with $40.0 million in the third quarter.
Coal Revenues
|
(millions)
|
|
Three months ended
|
|
Dec. 31, 2019
|
Sept. 30, 2019
|
CAPP - Met
|
$370.2
|
$373.1
|
CAPP - Thermal
|
$60.6
|
$80.2
|
NAPP
|
$65.8
|
$70.7
|
|
|
|
CAPP - Met (excl.
f&h)(1)
|
$310.9
|
$323.0
|
CAPP - Thermal (excl.
f&h)(1)
|
$50.1
|
$70.3
|
NAPP (excl. f&h)(1)
|
$62.4
|
$67.8
|
|
|
|
Tons Sold
|
(millions)
|
|
Three months ended
|
|
Dec. 31, 2019
|
Sept. 30, 2019
|
CAPP - Met
|
3.3
|
3.0
|
CAPP - Thermal
|
0.9
|
1.1
|
NAPP
|
1.5
|
1.6
|
|
|
|
1.
|
Represents Non-GAAP
coal revenues which is defined and reconciled under "Non-GAAP
Financial Measures" and "Results of Operations."
|
|
|
The CAPP - Met revenue decline in the fourth quarter was
driven by a 12 percent decline in price realizations relative to
the third quarter, partially offset by increased volumes, while
CAPP - Thermal revenues declined as a result of lower prices and
fewer tons sold. In the NAPP segment, the revenues were reduced due
to slightly lower shipments in the fourth quarter versus the third
quarter.
Coal Sales
Realization(1)
|
(per ton)
|
|
Three months ended
|
|
Dec. 31, 2019
|
Sept. 30, 2019
|
CAPP - Met
|
$94.98
|
$108.35
|
CAPP - Thermal
|
$56.13
|
$61.46
|
NAPP
|
$41.17
|
$41.33
|
|
|
|
1.
|
Represents Non-GAAP
coal sales realization which is defined and reconciled under
"Non-GAAP Financial Measures" and "Results of
Operations."
|
As a result of further weakening in the metallurgical coal
market in the fourth quarter, our average CAPP - Met coal sales
realization for the fourth quarter 2019 declined 12 percent to
$94.98 per ton over the prior
quarter. Thermal markets also saw softer prices in the fourth
quarter as our CAPP - Thermal coal average price was down 9 percent
from the third quarter, while the average NAPP realization was
essentially flat with the prior quarter.
Cost of Coal Sales
|
(in millions, except
per ton data)
|
|
Three months ended
|
|
Dec. 31, 2019
|
Sept. 30, 2019
|
Cost of Coal Sales
|
$444.6
|
$467.7
|
Cost of Coal Sales (excl.
f&h/idle)(1)
|
$366.4
|
$400.0
|
|
|
|
|
(per ton)
|
CAPP - Met(1)
|
$82.26
|
$87.32
|
CAPP - Thermal(1)
|
$49.21
|
$59.17
|
NAPP(1)
|
$34.67
|
$43.87
|
|
|
|
1.
|
Represents Non-GAAP
cost of coal sales per ton which is defined and reconciled under
"Non-GAAP Financial Measures" and "Results of
Operations."
|
All the segments saw improvements in cost of coal sales
compared to third quarter, with costs in CAPP - Met for the quarter
averaging more than $5.00 lower than
in the third quarter. The primary driver was higher productivity as
measured by clean tons per foot and feet per shift. Our
productivity continued to show similar improvements in the early
part of the first quarter 2020. Overall, our deep mines in the CAPP
region realized a 9 percent increase in feet per shift in the
fourth quarter over the prior quarter.
The fourth quarter NAPP cost of coal sales also saw
meaningful reduction as a longwall move and employee vacations had
resulted in an elevated third quarter 2019 cost per ton. CAPP -
Thermal cost of coal sales were significantly lower in the fourth
quarter as the thermal deep mines feet per shift increased by 12
percent over the third quarter. In addition, the third quarter CAPP
- Thermal cost was negatively impacted by approximately a
$3.00 per ton environmental
settlement.
Selling, general and administrative (SG&A) and
depreciation, depletion and amortization (DD&A)
expenses
|
(millions)
|
|
Three months ended
|
|
Dec. 31, 2019
|
Sept. 30, 2019
|
SG&A
|
$25.8
|
$17.4
|
Less: non-cash stock compensation
and one-time expenses
|
$(12.7)
|
$(2.2)
|
Non-GAAP SG&A(1)
|
$13.1
|
$15.2
|
|
|
|
DD&A
|
$43.9
|
$60.8
|
|
|
|
1.
|
Represents Non-GAAP
SG&A which is defined under "Non-GAAP Financial
Measures."
|
As a result of our management restructuring in the fourth
quarter 2019, SG&A expenses, excluding non-cash stock
compensation expense of $4.7 million
and one-time expenses of $8.0
million, primarily associated with management restructuring,
declined by more than $2 million from
the third quarter to $13.1
million.
Liquidity and Capital Resources
"Despite the difficult market conditions in the fourth
quarter, Contura's cash balance increased by more than $60 million over that period, ending the year
with more than $325 million in
liquidity," said Andy Eidson,
Contura's chief financial officer. "In these early months of 2020,
we continue to be keenly focused on cost savings and cash
optimization amid widespread uncertainty related to the coronavirus
and its potential impact on global economies and specifically met
markets."
Cash used in operating activities for the fourth quarter
2019, including discontinued operations, was $5.7 million, and capital expenditures for the
fourth quarter were $48.2 million. In
the prior period, the cash provided by operating activities was
$20.4 million and capital
expenditures were $60.3
million.
At the end of December 2019,
Contura had $212.8 million in
unrestricted cash and $165.7 million
in restricted cash, deposits and investments. Unrestricted cash
increased $60.2 million in the fourth
quarter, which included a tax refund of $65.3 million. Total long-term debt, including
the current portion of long-term debt as of December 31, 2019, was approximately $593.0 million. At the end of
the fourth quarter, the company had total liquidity of $327.8 million, including cash and cash
equivalents of $212.8 million and
$115.0 million of unused commitments
available under the Asset-Based Revolving Credit Facility. As of
December 31, 2019, the company had no
borrowings and $99.8 million in
letters of credit outstanding under the Asset-Based Revolving
Credit Facility.
2020 Full-Year Guidance
The company is maintaining its total 2020 coal shipments
guidance range of 20.7 million tons to 22.7 million
tons, with CAPP - Met volume remaining at 12.0 million to 12.6
million tons and CAPP - Thermal volume remaining at 2.7 million
tons to 3.3 million tons. NAPP volumes also remain at the previous
range of 6.0 million tons to 6.8 million tons.
For 2020, Contura has committed and priced approximately
52% of CAPP - Met at an average expected price of $97.91 per ton, while we are 100% committed and
priced at an average price of $55.95
per ton for CAPP - Thermal and 100% committed and priced for NAPP
at an average price of $43.43 per
ton.
The company also expects 2020 costs to remain unchanged
with CAPP - Met cost of coal sales per ton at a range of
$76.00 to $81.00. CAPP - Thermal is expected to be in the
range of $56.00 to $60.00 per ton and NAPP in the range of
$34.00 to $38.00 per ton.
For 2020, the company expects its SG&A to be in the range of
$50 million to $55 million, excluding non-recurring items and
stock compensation. We are reducing our 2020 capital expenditures
guidance by $30 million to a range of
$145 million to $165 million; maintaining depreciation, depletion
and amortization between $230 million
and $260 million; and cash interest
expense in the range of $48 million
and $52 million.
|
2020 Guidance
|
in millions of tons
|
Low
|
High
|
CAPP -
Metallurgical
|
12.0
|
|
12.6
|
|
CAPP -
Thermal
|
2.7
|
|
3.3
|
|
NAPP
|
6.0
|
|
6.8
|
|
Total Shipments
|
20.7
|
|
22.7
|
|
|
|
|
Committed/Priced1,2,3
|
Committed
|
Average Price
|
CAPP -
Metallurgical
|
52
|
%
|
$97.91
|
|
CAPP -
Thermal
|
100
|
%
|
$55.95
|
|
NAPP
|
100
|
%
|
$43.43
|
|
|
|
|
Committed/Unpriced1,3
|
Committed
|
|
CAPP -
Metallurgical
|
27
|
%
|
|
CAPP -
Thermal
|
—
|
%
|
|
NAPP
|
—
|
%
|
|
|
|
|
Costs per ton4
|
Low
|
High
|
CAPP -
Metallurgical
|
$76
|
|
$81
|
|
CAPP -
Thermal
|
$56
|
|
$60
|
|
NAPP
|
$34
|
|
$38
|
|
|
|
|
In millions (except taxes)
|
Low
|
High
|
SG&A5
|
$50
|
|
$55
|
|
Idle Operations
Expense
|
$16
|
|
$20
|
|
Cash Interest
Expense
|
$48
|
|
$52
|
|
DD&A
|
$230
|
|
$260
|
|
Capital
Expenditures
|
$145
|
|
$165
|
|
Tax Rate
|
—
|
%
|
5
|
%
|
Notes:
- Based on committed and priced coal shipments as of
March 6, 2020. Committed percentage
based on the midpoint of shipment guidance range.
- 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.
- Includes estimates of future coal shipments based upon
contract terms and anticipated delivery schedules. Actual coal
shipments may vary from these estimates.
- Note: The Company is unable to present a quantitative
reconciliation of its forward-looking non-GAAP cost of coal sales
per ton sold financial measures to the most directly comparable
GAAP measures without unreasonable efforts due to the inherent
difficulty in forecasting and quantifying with reasonable accuracy
significant items required for the reconciliation. The most
directly comparable GAAP measure, GAAP cost of sales, is not
accessible without unreasonable efforts on a forward- looking
basis. The reconciling items include freight and handling costs,
which are a component of GAAP cost of sales. Management is unable
to predict without unreasonable efforts freight and handling costs
due to uncertainty as to the end market and FOB point for
uncommitted sales volumes and the final shipping point for export
shipments. These amounts have historically varied and may continue
to vary significantly from quarter to quarter and material changes
to these items could have a significant effect on our future GAAP
results.
- Excludes expenses related to non-cash stock compensation
and non-recurring business development expenses.
Conference Call
The company plans to hold a conference call regarding its
fourth quarter 2019 results on March 18,
2020, at 10:00 a.m. EDT. The
conference call will be available live on the investor section of
the company's website at
http://investors.conturaenergy.com/investors.
Analysts who would like to participate in the conference call
should dial 877-791-0213 (domestic toll-free) or 647-689-5651
(international) approximately 10 minutes prior to the start of the
call.
ABOUT CONTURA ENERGY
Contura Energy (NYSE: CTRA) is a Tennessee-based coal supplier with affiliate
mining operations across major coal basins in Pennsylvania, Virginia and West
Virginia. With customers across the globe, high-quality
reserves and significant port capacity, Contura Energy reliably
supplies both metallurgical coal to produce steel and thermal coal
to generate power. For more information, visit
www.conturaenergy.com.
FORWARD-LOOKING STATEMENTS
This news release includes forward-looking
statements. These forward-looking statements are based on
Contura'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 Contura'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 Contura
to predict these events or how they may affect Contura. Except
as required by law, Contura has no duty to, and does not intend to,
update or revise the forward-looking statements in this news
release or elsewhere after the date this release is issued. In
light of these risks and uncertainties, investors should keep in
mind that results, events or developments discussed in any
forward-looking statement made in this news release may not
occur.
INVESTOR
CONTACT
investorrelations@conturaenergy.com
Alex Rotonen,
CFA
423.573.0396
MEDIA
CONTACT
corporatecommunications@conturaenergy.com
Emily
O'Quinn
423.573.0369
FINANCIAL TABLES FOLLOW
Non-GAAP Financial Measures
The discussion below contains "non-GAAP financial
measures." These are financial measures which 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 measure
"Adjusted EBITDA," "non-GAAP coal revenues," "non-GAAP cost of coal
sales," and "Adjusted cost of produced coal sold." We use Adjusted
EBITDA to measure the operating performance of our segments
and allocate resources to the segments. Adjusted EBITDA does not
purport to be an alternative to net income (loss) as a measure of
operating performance. 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, idled and closed mine
costs and coal inventory acquisition accounting impacts. Non-GAAP
cost of coal sales per ton for our operations is calculated as
non-GAAP cost of coal sales divided by tons sold. Non-GAAP coal
margin per ton for our coal operations is calculated as non-GAAP
coal sales realization per ton for our coal operations less
non-GAAP cost of coal sales per ton for our coal operations. We
also use Adjusted cost of produced coal sold to distinguish the
cost of captive produced coal from the effects of purchased coal.
The presentation of these measures should not be considered in
isolation, or as a substitute for analysis of our results as
reported under GAAP.
Management uses non-GAAP financial measures to supplement
GAAP results to provide a more complete understanding of the
factors and trends affecting the business than GAAP results alone.
The definition of these non-GAAP measures may be changed
periodically by management to adjust for significant items
important to an understanding of operating trends and to adjust for
items that may not reflect the trend of future results by excluding
transactions that are not indicative of our core operating
performance. Furthermore, analogous measures are used by industry
analysts to evaluate the Company's operating performance. Because
not all companies use identical calculations, the presentations of
these measures may not be comparable to other similarly titled
measures of other companies and can differ significantly from
company to company depending on long-term strategic decisions
regarding capital structure, the tax jurisdictions in which
companies operate, and capital investments.
Included below are reconciliations of non-GAAP financial
measures to GAAP financial measures.
CONTURA ENERGY,
INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except share and per share
data)
|
|
|
|
Three Months Ended December 31,
|
|
Year Ended December 31,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Revenues:
|
|
|
|
|
|
|
|
Coal
revenues
|
$
|
497,232
|
|
|
$
|
574,351
|
|
|
$
|
2,282,007
|
|
|
$
|
2,020,889
|
|
Freight and handling
revenues
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
Other
revenues
|
1,844
|
|
|
(2,267)
|
|
|
8,253
|
|
|
10,316
|
|
Total
revenues
|
499,076
|
|
|
572,084
|
|
|
2,290,260
|
|
|
2,031,205
|
|
Costs and
expenses:
|
|
|
|
|
|
|
|
Cost of coal sales
(exclusive of items shown
separately below)
|
444,611
|
|
|
461,829
|
|
|
1,924,709
|
|
|
1,661,118
|
|
Depreciation,
depletion and amortization
|
43,865
|
|
|
43,598
|
|
|
228,792
|
|
|
77,549
|
|
Accretion on asset
retirement obligations
|
7,873
|
|
|
4,421
|
|
|
27,798
|
|
|
9,966
|
|
Amortization of
acquired intangibles, net
|
4,624
|
|
|
(17,860)
|
|
|
(88)
|
|
|
(5,392)
|
|
Selling, general and
administrative expenses
(exclusive of depreciation, depletion and
amortization shown separately above)
|
25,832
|
|
|
15,781
|
|
|
78,953
|
|
|
59,271
|
|
Merger-related
costs
|
35
|
|
|
46,736
|
|
|
1,090
|
|
|
51,800
|
|
Asset
impairment
|
60,466
|
|
|
—
|
|
|
66,324
|
|
|
—
|
|
Goodwill
impairment
|
124,353
|
|
|
—
|
|
|
124,353
|
|
|
—
|
|
Total other operating
(income) loss:
|
|
|
|
|
|
|
|
Mark-to-market
adjustment for acquisition-
related obligations
|
(3,276)
|
|
|
24
|
|
|
(3,564)
|
|
|
24
|
|
Gain on settlement of
acquisition-related
obligations
|
—
|
|
|
(170)
|
|
|
—
|
|
|
(580)
|
|
Other expense
(income)
|
6,744
|
|
|
354
|
|
|
(575)
|
|
|
(16,311)
|
|
Total costs and
expenses
|
715,127
|
|
|
554,713
|
|
|
2,447,792
|
|
|
1,837,445
|
|
(Loss) income from
operations
|
(216,051)
|
|
|
17,371
|
|
|
(157,532)
|
|
|
193,760
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
Interest
expense
|
(16,719)
|
|
|
(12,272)
|
|
|
(66,798)
|
|
|
(38,810)
|
|
Interest
income
|
1,712
|
|
|
1,120
|
|
|
7,296
|
|
|
1,949
|
|
Loss on modification
and extinguishment of
debt
|
—
|
|
|
(12,042)
|
|
|
(26,459)
|
|
|
(12,042)
|
|
Equity loss in
affiliates
|
(2,070)
|
|
|
(3,255)
|
|
|
(6,874)
|
|
|
(6,112)
|
|
Miscellaneous loss,
net
|
(7,420)
|
|
|
(517)
|
|
|
(10,332)
|
|
|
(1,254)
|
|
Total other expense,
net
|
(24,497)
|
|
|
(26,966)
|
|
|
(103,167)
|
|
|
(56,269)
|
|
(Loss) income from
continuing operations before
income taxes
|
(240,548)
|
|
|
(9,595)
|
|
|
(260,699)
|
|
|
137,491
|
|
Income tax
benefit
|
48,677
|
|
|
165,496
|
|
|
57,557
|
|
|
165,363
|
|
Net (loss) income
from continuing operations
|
(191,871)
|
|
|
155,901
|
|
|
(203,142)
|
|
|
302,854
|
|
Discontinued
operations:
|
|
|
|
|
|
|
|
Income (loss) from
discontinued operations
before income taxes
|
59,582
|
|
|
(664)
|
|
|
(117,391)
|
|
|
(4,994)
|
|
Income tax (expense)
benefit from discontinued
operations
|
(8,652)
|
|
|
1,305
|
|
|
4,214
|
|
|
1,305
|
|
Income (loss) from
discontinued operations
|
50,930
|
|
|
641
|
|
|
(113,177)
|
|
|
(3,689)
|
|
Net (loss)
income
|
$
|
(140,941)
|
|
|
$
|
156,542
|
|
|
$
|
(316,319)
|
|
|
$
|
299,165
|
|
|
|
|
|
|
|
|
|
Basic (loss) income
per common share:
|
|
|
|
|
|
|
|
(Loss) income from
continuing operations
|
$
|
(10.54)
|
|
|
$
|
10.38
|
|
|
$
|
(10.80)
|
|
|
$
|
27.61
|
|
Income (loss) from
discontinued operations
|
2.79
|
|
|
0.04
|
|
|
(6.02)
|
|
|
(0.33)
|
|
Net (loss)
income
|
$
|
(7.75)
|
|
|
$
|
10.42
|
|
|
$
|
(16.82)
|
|
|
$
|
27.28
|
|
|
|
|
|
|
|
|
|
Diluted (loss) income
per common share:
|
|
|
|
|
|
|
|
(Loss) income from
continuing operations
|
$
|
(10.54)
|
|
|
$
|
9.85
|
|
|
$
|
(10.80)
|
|
|
$
|
25.86
|
|
Income (loss) from
discontinued operations
|
2.79
|
|
|
0.04
|
|
|
(6.02)
|
|
|
(0.32)
|
|
Net (loss)
income
|
$
|
(7.75)
|
|
|
$
|
9.89
|
|
|
$
|
(16.82)
|
|
|
$
|
25.54
|
|
|
|
|
|
|
|
|
|
Weighted average
shares - basic
|
18,195,651
|
|
|
15,014,994
|
|
|
18,808,460
|
|
|
10,967,014
|
|
Weighted average
shares - diluted
|
18,195,651
|
|
|
15,822,037
|
|
|
18,808,460
|
|
|
11,712,653
|
|
CONTURA ENERGY,
INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except share and per share
data)
|
|
|
December 31, 2019
|
|
December 31, 2018
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
212,793
|
|
|
$
|
233,599
|
|
Trade accounts
receivable, net of allowance for doubtful accounts of $0 as of
December
31, 2019 and 2018
|
244,666
|
|
|
292,617
|
|
Inventories,
net
|
162,659
|
|
|
121,965
|
|
Prepaid expenses and
other current assets
|
91,361
|
|
|
158,945
|
|
Current assets -
discontinued operations
|
—
|
|
|
22,475
|
|
Total current
assets
|
711,479
|
|
|
829,601
|
|
Property, plant, and
equipment, net of accumulated depreciation and amortization of
$314,276 and $106,766 as of December 31, 2019 and 2018
|
583,262
|
|
|
699,990
|
|
Owned and leased
mineral rights, net of accumulated depletion and amortization
of
$27,877 and $11,390 as of December 31, 2019 and 2018
|
523,141
|
|
|
528,232
|
|
Goodwill
|
—
|
|
|
95,624
|
|
Other acquired
intangibles, net of accumulated amortization of $32,686 and $20,267
as
of December 31, 2019 and 2018
|
125,145
|
|
|
154,584
|
|
Long-term restricted
cash
|
122,524
|
|
|
227,173
|
|
Deferred income
taxes
|
33,065
|
|
|
27,179
|
|
Other non-current
assets
|
204,207
|
|
|
183,675
|
|
Total
assets
|
$
|
2,302,823
|
|
|
$
|
2,746,058
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
Current
liabilities:
|
|
|
|
Current portion of
long-term debt
|
$
|
28,485
|
|
|
$
|
42,743
|
|
Trade accounts
payable
|
98,746
|
|
|
114,568
|
|
Acquisition-related
obligations - current
|
33,639
|
|
|
27,334
|
|
Accrued expenses and
other current liabilities
|
154,282
|
|
|
148,699
|
|
Current liabilities -
discontinued operations
|
—
|
|
|
21,892
|
|
Total current
liabilities
|
315,152
|
|
|
355,236
|
|
Long-term
debt
|
564,481
|
|
|
545,269
|
|
Acquisition-related
obligations - long-term
|
46,259
|
|
|
72,996
|
|
Workers' compensation
and black lung obligations
|
260,778
|
|
|
249,294
|
|
Pension
obligations
|
204,086
|
|
|
180,802
|
|
Asset retirement
obligations
|
184,130
|
|
|
203,694
|
|
Deferred income
taxes
|
422
|
|
|
15,118
|
|
Other non-current
liabilities
|
31,393
|
|
|
52,415
|
|
Non-current
liabilities - discontinued operations
|
—
|
|
|
94
|
|
Total
liabilities
|
1,606,701
|
|
|
1,674,918
|
|
Commitments and
Contingencies
|
|
|
|
Stockholders'
Equity
|
|
|
|
Preferred stock - par
value $0.01, 5.0 million shares authorized at December 31, 2019
and 2018, none issued
|
—
|
|
|
—
|
|
Common stock - par
value $0.01, 50.0 million shares authorized, 20.5 million
issued and
18.2 million outstanding at December 31, 2019 and 20.2 million
issued and 19.1 million
outstanding at December 31, 2018
|
205
|
|
|
202
|
|
Additional paid-in
capital
|
775,707
|
|
|
761,301
|
|
Accumulated other
comprehensive loss
|
(58,616)
|
|
|
(23,130)
|
|
Treasury stock, at
cost: 2.3 million shares at December 31, 2019 and 1.1 million
shares at
December 31, 2018
|
(107,984)
|
|
|
(70,362)
|
|
Retained
earnings
|
86,810
|
|
|
403,129
|
|
Total stockholders'
equity
|
696,122
|
|
|
1,071,140
|
|
Total liabilities and
stockholders' equity
|
$
|
2,302,823
|
|
|
$
|
2,746,058
|
|
CONTURA
ENERGY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands)
|
|
|
Year Ended December 31,
|
|
2019
|
|
2018
|
Operating activities:
|
|
|
|
Net (loss)
income
|
$
|
(316,319)
|
|
|
$
|
299,165
|
|
Adjustments to
reconcile net (loss) income to net cash provided by operating
activities:
|
|
|
|
Depreciation,
depletion and amortization
|
315,162
|
|
|
77,549
|
|
Amortization of
acquired intangibles, net
|
(88)
|
|
|
(5,392)
|
|
Accretion of
acquisition-related obligations discount
|
5,522
|
|
|
5,627
|
|
Amortization of debt
issuance costs and accretion of debt discount
|
14,070
|
|
|
4,483
|
|
Mark-to-market
adjustment for acquisition-related obligations
|
(3,564)
|
|
|
24
|
|
Gain on settlement of
acquisition-related obligations
|
—
|
|
|
(580)
|
|
Loss (gain) on
disposal of assets
|
8,142
|
|
|
(16,852)
|
|
Gain on assets
acquired in an exchange transaction
|
(9,083)
|
|
|
—
|
|
Accretion on asset
retirement obligations
|
33,759
|
|
|
9,966
|
|
Employee benefit
plans, net
|
20,846
|
|
|
9,231
|
|
Deferred income
taxes
|
(12,098)
|
|
|
(66,682)
|
|
Goodwill
impairment
|
124,353
|
|
|
—
|
|
Asset
impairment
|
83,485
|
|
|
—
|
|
Loss on modification
and extinguishment of debt
|
26,459
|
|
|
12,042
|
|
Stock-based
compensation
|
12,397
|
|
|
13,354
|
|
Equity in loss of
affiliates
|
6,874
|
|
|
6,112
|
|
Other, net
|
(5,204)
|
|
|
1,643
|
|
Changes in operating
assets and liabilities
|
|
|
|
Trade accounts
receivable, net
|
47,424
|
|
|
(84,139)
|
|
Inventories,
net
|
(40,694)
|
|
|
33,232
|
|
Prepaid expenses and
other current assets
|
56,671
|
|
|
(44,266)
|
|
Deposits
|
15,170
|
|
|
(7,493)
|
|
Other non-current
assets
|
(24,460)
|
|
|
(36,655)
|
|
Trade accounts
payable
|
(28,148)
|
|
|
(7,075)
|
|
Accrued expenses and
other current liabilities
|
(25,495)
|
|
|
(7,345)
|
|
Acquisition-related
obligations
|
(28,128)
|
|
|
(14,500)
|
|
Asset retirement
obligations
|
(111,616)
|
|
|
(3,175)
|
|
Other non-current
liabilities
|
(33,557)
|
|
|
(19,893)
|
|
Net cash provided by operating
activities
|
131,880
|
|
|
158,381
|
|
Investing activities:
|
|
|
|
Capital
expenditures
|
(192,411)
|
|
|
(81,881)
|
|
Payments on disposal
of assets
|
—
|
|
|
(10,250)
|
|
Proceeds on disposal
of assets
|
2,780
|
|
|
997
|
|
Capital contributions
to equity affiliates
|
(10,051)
|
|
|
(5,253)
|
|
Cash, cash
equivalents and restricted cash acquired in acquisition, net of
amounts paid
|
—
|
|
|
198,506
|
|
Purchase of
investment securities
|
(92,855)
|
|
|
(3,280)
|
|
Maturity of
investment securities
|
100,250
|
|
|
3,360
|
|
Other, net
|
535
|
|
|
(3)
|
|
Net cash (used in) provided by investing
activities
|
(191,752)
|
|
|
102,196
|
|
Financing activities:
|
|
|
|
Proceeds from
borrowings on debt
|
544,946
|
|
|
537,750
|
|
Principal repayments
of debt
|
(552,809)
|
|
|
(471,704)
|
|
Principal repayments
of financing lease obligations
|
(3,654)
|
|
|
(533)
|
|
Form S-4
costs
|
—
|
|
|
(3,918)
|
|
Debt issuance
costs
|
(6,689)
|
|
|
(14,931)
|
|
Common stock
repurchases and related expenses
|
(37,622)
|
|
|
(20,270)
|
|
Principal repayments
of notes payable
|
(14,818)
|
|
|
(3,844)
|
|
Other, net
|
952
|
|
|
159
|
|
Net cash (used in) provided by financing
activities
|
(69,694)
|
|
|
22,709
|
|
Net (decrease)
increase in cash and cash equivalents and restricted
cash
|
(129,566)
|
|
|
283,286
|
|
Cash and cash
equivalents and restricted cash at beginning of period
|
477,246
|
|
|
193,960
|
|
Cash and cash
equivalents and restricted cash at end of period
|
$
|
347,680
|
|
|
$
|
477,246
|
|
|
|
|
|
Supplemental cash flow
information:
|
|
|
|
Cash paid for
interest
|
$
|
51,877
|
|
|
$
|
27,340
|
|
Cash paid for income
taxes
|
$
|
3,039
|
|
|
$
|
37
|
|
Cash received for
income tax refunds
|
$
|
72,236
|
|
|
$
|
14,157
|
|
Supplemental disclosure of noncash investing and
financing activities:
|
|
|
|
Financing leases and
capital financing - equipment
|
$
|
5,324
|
|
|
$
|
6,513
|
|
Accrued capital
expenditures
|
$
|
4,110
|
|
|
$
|
6,879
|
|
Issuance of equity in
connection with acquisition
|
$
|
—
|
|
|
$
|
664,460
|
|
Net balance due to
Alpha deemed effectively settled
|
$
|
—
|
|
|
$
|
47,048
|
|
The following table provides a reconciliation of cash and cash
equivalents and restricted cash reported within the Consolidated
Balance Sheets that sum to the total of the same such amounts shown
in the Consolidated Statements of Cash Flows.
|
As of December 31,
|
|
2019
|
|
2018
|
Cash and cash
equivalents
|
$
|
212,793
|
|
|
$
|
233,599
|
|
Short-term restricted
cash (included in prepaid expenses and other current
assets)
|
12,363
|
|
|
16,474
|
|
Long-term restricted
cash
|
122,524
|
|
|
227,173
|
|
Total cash and cash
equivalents and restricted cash
|
$
|
347,680
|
|
|
$
|
477,246
|
|
CONTURA ENERGY,
INC. AND SUBSIDIARIES
ADJUSTED EBITDA RECONCILIATION
(Amounts in thousands)
|
|
|
Three Months Ended
|
|
Year Ended December 31,
|
|
September 30,
2019
|
|
December 31,
2019
|
|
December 31,
2018
|
|
2019
|
|
2018
|
Net (loss) income
from continuing operations
|
$
|
(43,561)
|
|
|
$
|
(191,871)
|
|
|
$
|
155,901
|
|
|
$
|
(203,142)
|
|
|
$
|
302,854
|
|
Interest
expense
|
18,847
|
|
|
16,719
|
|
|
12,272
|
|
|
66,798
|
|
|
38,810
|
|
Interest
income
|
(1,763)
|
|
|
(1,712)
|
|
|
(1,120)
|
|
|
(7,296)
|
|
|
(1,949)
|
|
Income tax
benefit
|
(3,102)
|
|
|
(48,677)
|
|
|
(165,496)
|
|
|
(57,557)
|
|
|
(165,363)
|
|
Depreciation,
depletion and amortization
|
60,842
|
|
|
43,865
|
|
|
43,598
|
|
|
228,792
|
|
|
77,549
|
|
Merger-related
costs
|
68
|
|
|
35
|
|
|
46,736
|
|
|
1,090
|
|
|
51,800
|
|
Management
restructuring costs (1)
|
—
|
|
|
7,720
|
|
|
—
|
|
|
7,720
|
|
|
2,659
|
|
Non-cash stock
compensation expense
|
2,738
|
|
|
4,885
|
|
|
3,738
|
|
|
12,348
|
|
|
11,978
|
|
Mark-to-market
adjustment - acquisition-related
obligations
|
(3,238)
|
|
|
(3,276)
|
|
|
24
|
|
|
(3,564)
|
|
|
24
|
|
Gain on settlement of
acquisition-related
obligations
|
—
|
|
|
—
|
|
|
(170)
|
|
|
—
|
|
|
(580)
|
|
Gain on sale of
disposal group (2)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(16,386)
|
|
Accretion on asset
retirement obligations
|
6,846
|
|
|
7,873
|
|
|
4,421
|
|
|
27,798
|
|
|
9,966
|
|
Loss on modification
and extinguishment of debt
|
—
|
|
|
—
|
|
|
12,042
|
|
|
26,459
|
|
|
12,042
|
|
Asset impairment
(3)
|
32
|
|
|
60,466
|
|
|
—
|
|
|
66,324
|
|
|
—
|
|
Goodwill impairment
(4)
|
—
|
|
|
124,353
|
|
|
—
|
|
|
124,353
|
|
|
—
|
|
Cost impact of coal
inventory fair value
adjustment (5)
|
—
|
|
|
—
|
|
|
17,064
|
|
|
8,209
|
|
|
17,064
|
|
Gain on assets
acquired in an exchange
transaction (6)
|
—
|
|
|
—
|
|
|
—
|
|
|
(9,083)
|
|
|
—
|
|
Loss on partial
settlement of benefit obligations
|
—
|
|
|
6,446
|
|
|
—
|
|
|
6,446
|
|
|
—
|
|
Amortization of
acquired intangibles, net
|
2,314
|
|
|
4,624
|
|
|
(17,860)
|
|
|
(88)
|
|
|
(5,392)
|
|
Adjusted
EBITDA
|
$
|
40,023
|
|
|
$
|
31,450
|
|
|
$
|
111,150
|
|
|
$
|
295,607
|
|
|
$
|
335,076
|
|
(1)
|
Management
restructuring costs are related to severance expense associated
with senior management changes.
|
(2)
|
The Company recorded
a gain on disposal of assets of $16,386 within other (income)
expense within the Consolidated Statements of
Operations.
|
(3)
|
Asset impairment for
the year ended December 31, 2019 includes a long-lived asset
impairment of $60,169 related to asset groups recorded within the
CAPP - Met and CAPP - Thermal reporting segments and an asset
impairment of $6,155 primarily related to the write-off of prepaid
purchased coal as a result of Blackjewel's Chapter 11 bankruptcy
filing on July 1, 2019.
|
(4)
|
The goodwill
impairment testing as of December 31, 2019 resulted in a goodwill
impairment of $124,353 to write down the full carrying value of
goodwill.
|
(5)
|
The cost impact of
the coal inventory fair value adjustment as a result of the Alpha
Merger was completed during the three months ended June 30,
2019.
|
(6)
|
During the year ended
December 31, 2019, the Company entered into an exchange
transaction which primarily included the release of the PRB
overriding royalty interest owed to the Company in exchange for met
coal reserves which resulted in a gain of $9,083.
|
|
CONTURA ENERGY,
INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS
|
|
|
|
|
Three Months Ended September 30,
2019
|
|
(In thousands, except for per ton
data)
|
CAPP - Met
|
|
CAPP -
Thermal
|
|
NAPP
|
|
All Other
|
|
Consolidated
|
|
Coal
revenues
|
$
|
373,078
|
|
|
$
|
80,174
|
|
|
$
|
70,735
|
|
|
$
|
—
|
|
|
$
|
523,987
|
|
|
Less: freight and
handling fulfillment revenues
|
(50,100)
|
|
|
(9,869)
|
|
|
(2,961)
|
|
|
—
|
|
|
(62,930)
|
|
|
Non-GAAP coal
revenues
|
$
|
322,978
|
|
|
$
|
70,305
|
|
|
$
|
67,774
|
|
|
$
|
—
|
|
|
$
|
461,057
|
|
|
Tons sold
|
2,981
|
|
|
1,144
|
|
|
1,640
|
|
|
—
|
|
|
5,765
|
|
|
Non-GAAP coal sales
realization per ton
|
$
|
108.35
|
|
|
$
|
61.46
|
|
|
$
|
41.33
|
|
|
$
|
—
|
|
|
$
|
79.98
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of coal
sales
|
$
|
312,369
|
|
|
$
|
78,022
|
|
|
$
|
75,571
|
|
|
$
|
1,696
|
|
|
$
|
467,658
|
|
|
Less: freight and
handling costs
|
(50,100)
|
|
|
(9,869)
|
|
|
(2,961)
|
|
|
—
|
|
|
(62,930)
|
|
|
Less: idled and
closed mine costs
|
(1,956)
|
|
|
(458)
|
|
|
(659)
|
|
|
(1,696)
|
|
|
(4,769)
|
|
|
Non-GAAP cost of coal
sales
|
$
|
260,313
|
|
|
$
|
67,695
|
|
|
$
|
71,951
|
|
|
$
|
—
|
|
|
$
|
399,959
|
|
|
Tons sold
|
2,981
|
|
|
1,144
|
|
|
1,640
|
|
|
—
|
|
|
5,765
|
|
|
Non-GAAP cost of coal
sales per ton
|
$
|
87.32
|
|
|
$
|
59.17
|
|
|
$
|
43.87
|
|
|
$
|
—
|
|
|
$
|
69.38
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Coal margin per ton
(1)
|
$
|
20.37
|
|
|
$
|
1.88
|
|
|
$
|
(2.95)
|
|
|
$
|
—
|
|
|
$
|
9.77
|
|
|
Idled and closed mine
costs per ton
|
0.66
|
|
|
0.41
|
|
|
0.41
|
|
|
—
|
|
|
0.83
|
|
|
Non-GAAP coal margin
per ton
|
$
|
21.03
|
|
|
$
|
2.29
|
|
|
$
|
(2.54)
|
|
|
$
|
—
|
|
|
$
|
10.60
|
|
|
|
(1)
|
Coal margin per ton
for our coal operations is calculated as coal sales realization per
ton for our coal operations less cost of coal sales per ton for our
coal operations.
|
|
|
|
|
Three Month Ended December 31,
2019
|
|
(In thousands, except for per ton
data)
|
CAPP - Met
|
|
CAPP -
Thermal
|
|
NAPP
|
|
All Other (2)
|
|
Consolidated
|
|
Coal
revenues
|
$
|
370,200
|
|
|
$
|
60,576
|
|
|
$
|
65,775
|
|
|
$
|
681
|
|
|
$
|
497,232
|
|
|
Less: freight and
handling fulfillment revenues
|
(59,320)
|
|
|
(10,450)
|
|
|
(3,397)
|
|
|
—
|
|
|
(73,167)
|
|
|
Non-GAAP coal
revenues
|
$
|
310,880
|
|
|
$
|
50,126
|
|
|
$
|
62,378
|
|
|
$
|
681
|
|
|
$
|
424,065
|
|
|
Tons sold
|
3,273
|
|
|
893
|
|
|
1,515
|
|
|
8
|
|
|
5,689
|
|
|
Non-GAAP coal sales
realization per ton
|
$
|
94.98
|
|
|
$
|
56.13
|
|
|
$
|
41.17
|
|
|
$
|
85.13
|
|
|
$
|
74.54
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of coal
sales
|
$
|
331,305
|
|
|
$
|
55,653
|
|
|
$
|
57,701
|
|
|
$
|
(48)
|
|
|
$
|
444,611
|
|
|
Less: freight and
handling costs
|
(59,320)
|
|
|
(10,450)
|
|
|
(3,397)
|
|
|
—
|
|
|
(73,167)
|
|
|
Less: idled and
closed mine costs
|
(2,757)
|
|
|
(1,260)
|
|
|
(1,783)
|
|
|
713
|
|
|
(5,087)
|
|
|
Non-GAAP cost of coal
sales
|
$
|
269,228
|
|
|
$
|
43,943
|
|
|
$
|
52,521
|
|
|
$
|
665
|
|
|
$
|
366,357
|
|
|
Tons sold
|
3,273
|
|
|
893
|
|
|
1,515
|
|
|
8
|
|
|
5,689
|
|
|
Non-GAAP cost of coal
sales per ton
|
$
|
82.26
|
|
|
$
|
49.21
|
|
|
$
|
34.67
|
|
|
$
|
83.13
|
|
|
$
|
64.40
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Coal margin per ton
(1)
|
$
|
11.88
|
|
|
$
|
5.51
|
|
|
$
|
5.33
|
|
|
$
|
91.13
|
|
|
$
|
9.25
|
|
|
Idled and closed mine
costs per ton
|
0.84
|
|
|
1.41
|
|
|
1.17
|
|
|
(89.13)
|
|
|
0.89
|
|
|
Non-GAAP coal margin
per ton
|
$
|
12.72
|
|
|
$
|
6.92
|
|
|
$
|
6.50
|
|
|
$
|
2.00
|
|
|
$
|
10.14
|
|
|
|
(1)
|
Coal margin per ton
for our coal operations is calculated as coal sales realization per
ton for our coal operations less cost of coal sales per ton for our
coal operations.
|
(2)
|
The fourth quarter of
2019 included coal revenues and cost of coal sales related to tons
produced as a byproduct of an idle mine's reclamation.
|
|
|
|
|
Three Months Ended December 31,
2018
|
|
(In thousands, except for per ton
data)
|
CAPP - Met
|
|
CAPP -
Thermal
|
|
NAPP
|
|
All Other
|
|
Consolidated
|
|
Coal
revenues
|
$
|
433,586
|
|
|
$
|
39,113
|
|
|
$
|
101,652
|
|
|
$
|
—
|
|
|
$
|
574,351
|
|
|
Less: freight and
handling fulfillment revenues
|
(74,463)
|
|
|
(3,428)
|
|
|
(11,706)
|
|
|
—
|
|
|
(89,597)
|
|
|
Non-GAAP coal
revenues
|
$
|
359,123
|
|
|
$
|
35,685
|
|
|
$
|
89,946
|
|
|
$
|
—
|
|
|
$
|
484,754
|
|
|
Tons sold
|
2,903
|
|
|
632
|
|
|
1,971
|
|
|
—
|
|
|
5,506
|
|
|
Non-GAAP coal sales
realization per ton
|
$
|
123.71
|
|
|
$
|
56.46
|
|
|
$
|
45.63
|
|
|
$
|
—
|
|
|
$
|
88.04
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of coal
sales
|
$
|
338,822
|
|
|
$
|
46,022
|
|
|
$
|
76,044
|
|
|
$
|
941
|
|
|
$
|
461,829
|
|
|
Less: freight and
handling costs
|
(74,463)
|
|
|
(3,428)
|
|
|
(11,706)
|
|
|
—
|
|
|
(89,597)
|
|
|
Less: idled and
closed mine costs
|
(1,118)
|
|
|
(202)
|
|
|
30
|
|
|
(941)
|
|
|
(2,231)
|
|
|
Less: cost impact of
coal inventory fair value adjustment (1)
|
(11,547)
|
|
|
(5,517)
|
|
|
—
|
|
|
—
|
|
|
(17,064)
|
|
|
Non-GAAP cost of coal
sales
|
$
|
251,694
|
|
|
$
|
36,875
|
|
|
$
|
64,368
|
|
|
$
|
—
|
|
|
$
|
352,937
|
|
|
Tons sold
|
2,903
|
|
|
632
|
|
|
1,971
|
|
|
—
|
|
|
5,506
|
|
|
Non-GAAP cost of coal
sales per ton
|
$
|
86.70
|
|
|
$
|
58.35
|
|
|
$
|
32.66
|
|
|
$
|
—
|
|
|
$
|
64.10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Coal margin per ton
(2)
|
$
|
32.64
|
|
|
$
|
(10.93)
|
|
|
$
|
12.99
|
|
|
$
|
—
|
|
|
$
|
20.44
|
|
|
Idled and closed mine
costs per ton
|
0.39
|
|
|
0.32
|
|
|
(0.02)
|
|
|
—
|
|
|
0.41
|
|
|
Cost impact of coal
inventory fair value adjustment per ton
|
3.98
|
|
|
8.72
|
|
|
—
|
|
|
—
|
|
|
3.09
|
|
|
Non-GAAP coal margin
per ton
|
$
|
37.01
|
|
|
$
|
(1.89)
|
|
|
$
|
12.97
|
|
|
$
|
—
|
|
|
$
|
23.94
|
|
|
|
(1)
|
The cost impact of
the coal inventory fair value adjustment as a result of the Alpha
Merger was completed during the three months ended June 30,
2019.
|
(2)
|
Coal margin per ton
for our coal operations is calculated as coal sales realization per
ton for our coal operations less cost of coal sales per ton for our
coal operations.
|
|
|
|
|
Year Ended December 31, 2019
|
|
(In thousands, except for per ton
data)
|
CAPP - Met
|
|
CAPP -
Thermal
|
|
NAPP
|
|
All Other (3)
|
|
Consolidated
|
|
Coal
revenues
|
$
|
1,709,863
|
|
|
$
|
285,390
|
|
|
$
|
286,073
|
|
|
$
|
681
|
|
|
$
|
2,282,007
|
|
|
Less: freight and
handling fulfillment revenues
|
(242,049)
|
|
|
(34,133)
|
|
|
(8,827)
|
|
|
—
|
|
|
(285,009)
|
|
|
Non-GAAP coal
revenues
|
$
|
1,467,814
|
|
|
$
|
251,257
|
|
|
$
|
277,246
|
|
|
$
|
681
|
|
|
$
|
1,996,998
|
|
|
Tons sold
|
12,926
|
|
|
4,218
|
|
|
6,554
|
|
|
8
|
|
|
23,706
|
|
|
Non-GAAP coal sales
realization per ton
|
$
|
113.56
|
|
|
$
|
59.57
|
|
|
$
|
42.30
|
|
|
$
|
85.13
|
|
|
$
|
84.24
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of coal
sales
|
$
|
1,389,293
|
|
|
$
|
274,320
|
|
|
$
|
257,267
|
|
|
$
|
3,829
|
|
|
$
|
1,924,709
|
|
|
Less: freight and
handling costs
|
(242,049)
|
|
|
(34,133)
|
|
|
(8,827)
|
|
|
—
|
|
|
(285,009)
|
|
|
Less: idled and
closed mine costs
|
(8,699)
|
|
|
(2,702)
|
|
|
(4,005)
|
|
|
(3,164)
|
|
|
(18,570)
|
|
|
Less: cost impact of
coal inventory fair value adjustment (1)
|
(4,751)
|
|
|
(3,458)
|
|
|
—
|
|
|
—
|
|
|
(8,209)
|
|
|
Non-GAAP cost of coal
sales
|
$
|
1,133,794
|
|
|
$
|
234,027
|
|
|
$
|
244,435
|
|
|
$
|
665
|
|
|
$
|
1,612,921
|
|
|
Tons sold
|
12,926
|
|
|
4,218
|
|
|
6,554
|
|
|
8
|
|
|
23,706
|
|
|
Non-GAAP cost of coal
sales per ton
|
$
|
87.71
|
|
|
$
|
55.48
|
|
|
$
|
37.30
|
|
|
$
|
83.13
|
|
|
$
|
68.04
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Coal margin per ton
(2)
|
$
|
24.80
|
|
|
$
|
2.62
|
|
|
$
|
4.40
|
|
|
$
|
(393.50)
|
|
|
$
|
15.07
|
|
|
Idled and closed mine
costs per ton
|
0.67
|
|
|
0.64
|
|
|
0.60
|
|
|
395.50
|
|
|
0.78
|
|
|
Cost impact of coal
inventory fair value adjustment per ton
|
0.38
|
|
|
0.83
|
|
|
—
|
|
|
—
|
|
|
0.35
|
|
|
Non-GAAP coal margin
per ton
|
$
|
25.85
|
|
|
$
|
4.09
|
|
|
$
|
5.00
|
|
|
$
|
2.00
|
|
|
$
|
16.20
|
|
|
|
(1)
|
The cost impact of
the coal inventory fair value adjustment as a result of the Alpha
Merger was completed during the three months ended June 30,
2019.
|
(2)
|
Coal margin per ton
for our coal operations is calculated as coal sales realization per
ton for our coal operations less cost of coal sales per ton for our
coal operations.
|
(3)
|
The fourth quarter of
2019 included coal revenues and cost of coal sales related to tons
produced as a byproduct of an idle mine's reclamation.
|
|
|
|
|
Year Ended December 31, 2018
|
|
(In thousands, except for per ton
data)
|
CAPP - Met
|
|
CAPP -
Thermal
|
|
NAPP
|
|
All Other
|
|
Consolidated
|
|
Coal
revenues
|
$
|
1,669,358
|
|
|
$
|
39,113
|
|
|
$
|
312,418
|
|
|
$
|
—
|
|
|
$
|
2,020,889
|
|
|
Less: freight and
handling fulfillment revenues
|
(306,662)
|
|
|
(3,428)
|
|
|
(31,243)
|
|
|
—
|
|
|
(341,333)
|
|
|
Non-GAAP coal
revenues
|
$
|
1,362,696
|
|
|
$
|
35,685
|
|
|
$
|
281,175
|
|
|
$
|
—
|
|
|
$
|
1,679,556
|
|
|
Tons sold
|
10,682
|
|
|
632
|
|
|
6,273
|
|
|
—
|
|
|
17,587
|
|
|
Non-GAAP coal sales
realization per ton
|
$
|
127.57
|
|
|
$
|
56.46
|
|
|
$
|
44.82
|
|
|
$
|
—
|
|
|
$
|
95.50
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of coal
sales
|
$
|
1,341,260
|
|
|
$
|
46,022
|
|
|
$
|
272,895
|
|
|
$
|
941
|
|
|
$
|
1,661,118
|
|
|
Less: freight and
handling costs
|
(306,662)
|
|
|
(3,428)
|
|
|
(31,243)
|
|
|
—
|
|
|
(341,333)
|
|
|
Less: idled and
closed mine costs
|
(3,904)
|
|
|
(202)
|
|
|
(2,710)
|
|
|
(941)
|
|
|
(7,757)
|
|
|
Less: cost impact of
coal inventory fair value adjustment (1)
|
(11,547)
|
|
|
(5,517)
|
|
|
—
|
|
|
—
|
|
|
(17,064)
|
|
|
Non-GAAP cost of coal
sales
|
$
|
1,019,147
|
|
|
$
|
36,875
|
|
|
$
|
238,942
|
|
|
$
|
—
|
|
|
$
|
1,294,964
|
|
|
Tons sold
|
10,682
|
|
|
632
|
|
|
6,273
|
|
|
—
|
|
|
17,587
|
|
|
Non-GAAP cost of coal
sales per ton
|
$
|
95.41
|
|
|
$
|
58.35
|
|
|
$
|
38.09
|
|
|
$
|
—
|
|
|
$
|
73.63
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Coal margin per ton
(2)
|
$
|
30.72
|
|
|
$
|
(10.93)
|
|
|
$
|
6.30
|
|
|
$
|
—
|
|
|
$
|
20.46
|
|
|
Idled and closed mine
costs per ton
|
0.36
|
|
|
0.32
|
|
|
0.43
|
|
|
—
|
|
|
0.44
|
|
|
Cost impact of coal
inventory fair value adjustment per ton
|
1.08
|
|
|
8.72
|
|
|
—
|
|
|
—
|
|
|
0.97
|
|
|
Non-GAAP coal margin
per ton
|
$
|
32.16
|
|
|
$
|
(1.89)
|
|
|
$
|
6.73
|
|
|
$
|
—
|
|
|
$
|
21.87
|
|
|
|
(1)
|
The cost impact of
the coal inventory fair value adjustment as a result of the Alpha
Merger was completed during the three months ended June 30,
2019.
|
(2)
|
Coal margin per ton
for our coal operations is calculated as coal sales realization per
ton for our coal operations less cost of coal sales per ton for our
coal operations.
|
|
|
|
|
Three Months Ended September 30,
2019
|
|
(In thousands, except for per ton
data)
|
CAPP - Met
|
|
CAPP -
Thermal
|
|
NAPP
|
|
All Other
|
|
Consolidated
|
|
Non-GAAP cost of coal
sales
|
$
|
260,313
|
|
|
$
|
67,695
|
|
|
$
|
71,951
|
|
|
$
|
—
|
|
|
$
|
399,959
|
|
|
Less: cost of
purchased coal sold
|
(47,731)
|
|
|
(1,050)
|
|
|
—
|
|
|
—
|
|
|
(48,781)
|
|
|
Adjusted cost of
produced coal sold
|
$
|
212,582
|
|
|
$
|
66,645
|
|
|
$
|
71,951
|
|
|
$
|
—
|
|
|
$
|
351,178
|
|
|
Produced tons
sold
|
2,558
|
|
|
1,127
|
|
|
1,640
|
|
|
—
|
|
|
5,325
|
|
|
Adjusted cost of
produced coal sold per ton (1)
|
$
|
83.10
|
|
|
$
|
59.13
|
|
|
$
|
43.87
|
|
|
$
|
—
|
|
|
$
|
65.95
|
|
|
|
(1)
|
Cost of produced coal
sold per ton for our operations is calculated as non-GAAP cost of
produced coal sold divided by produced tons sold.
|
|
|
|
|
Three Months Ended December 31,
2019
|
|
(In thousands, except for per ton
data)
|
CAPP - Met
|
|
CAPP -
Thermal
|
|
NAPP
|
|
All Other
|
|
Consolidated
|
|
Non-GAAP cost of coal
sales
|
$
|
269,228
|
|
|
$
|
43,943
|
|
|
$
|
52,521
|
|
|
$
|
665
|
|
|
$
|
366,357
|
|
|
Less: cost of
purchased coal sold
|
(43,091)
|
|
|
(598)
|
|
|
—
|
|
|
—
|
|
|
(43,689)
|
|
|
Adjusted cost of
produced coal sold
|
$
|
226,137
|
|
|
$
|
43,345
|
|
|
$
|
52,521
|
|
|
$
|
665
|
|
|
$
|
322,668
|
|
|
Produced tons
sold
|
2,779
|
|
|
876
|
|
|
1,515
|
|
|
8
|
|
|
5,178
|
|
|
Adjusted cost of
produced coal sold per ton (1)
|
$
|
81.37
|
|
|
$
|
49.48
|
|
|
$
|
34.67
|
|
|
$
|
83.13
|
|
|
$
|
62.32
|
|
|
|
(1)
|
Cost of produced coal
sold per ton for our operations is calculated as non-GAAP cost of
produced coal sold divided by produced tons sold.
|
|
|
|
|
Three Month Ended December 31,
2018
|
|
(In thousands, except for per ton
data)
|
CAPP - Met
|
|
CAPP -
Thermal
|
|
NAPP
|
|
All Other
|
|
Consolidated
|
|
Non-GAAP cost of coal
sales
|
$
|
251,694
|
|
|
$
|
36,875
|
|
|
$
|
64,368
|
|
|
$
|
—
|
|
|
$
|
352,937
|
|
|
Less: cost of
purchased coal sold
|
(113,266)
|
|
|
(2,185)
|
|
|
—
|
|
|
—
|
|
|
(115,451)
|
|
|
Adjusted cost of
produced coal sold
|
$
|
138,428
|
|
|
$
|
34,690
|
|
|
$
|
64,368
|
|
|
$
|
—
|
|
|
$
|
237,486
|
|
|
Produced tons
sold
|
1,910
|
|
|
595
|
|
|
1,971
|
|
|
—
|
|
|
4,476
|
|
|
Adjusted cost of
produced coal sold per ton (1)
|
$
|
72.48
|
|
|
$
|
58.30
|
|
|
$
|
32.66
|
|
|
$
|
—
|
|
|
$
|
53.06
|
|
|
|
(1)
|
Cost of produced coal
sold per ton for our operations is calculated as non-GAAP cost of
produced coal sold divided by produced tons sold.
|
|
|
|
|
Year Ended December 31, 2019
|
|
(In thousands, except for per ton
data)
|
CAPP - Met
|
|
CAPP -
Thermal
|
|
NAPP
|
|
All Other
|
|
Consolidated
|
|
Non-GAAP cost of coal
sales
|
$
|
1,133,794
|
|
|
$
|
234,027
|
|
|
$
|
244,435
|
|
|
$
|
665
|
|
|
$
|
1,612,921
|
|
|
Less: cost of
purchased coal sold
|
(237,681)
|
|
|
(6,976)
|
|
|
—
|
|
|
—
|
|
|
(244,657)
|
|
|
Adjusted cost of
produced coal sold
|
$
|
896,113
|
|
|
$
|
227,051
|
|
|
$
|
244,435
|
|
|
$
|
665
|
|
|
$
|
1,368,264
|
|
|
Produced tons
sold
|
10,727
|
|
|
4,091
|
|
|
6,554
|
|
|
8
|
|
|
21,380
|
|
|
Adjusted cost of
produced coal sold per ton (1)
|
$
|
83.54
|
|
|
$
|
55.50
|
|
|
$
|
37.30
|
|
|
$
|
83.13
|
|
|
$
|
64.00
|
|
|
|
(1)
|
Cost of produced coal
sold per ton for our operations is calculated as non-GAAP cost of
produced coal sold divided by produced tons sold.
|
|
|
|
|
Year Ended December 31, 2018
|
|
(In thousands, except for per ton
data)
|
CAPP - Met
|
|
CAPP -
Thermal
|
|
NAPP
|
|
All Other
|
|
Consolidated
|
|
Non-GAAP cost of coal
sales
|
$
|
1,019,147
|
|
|
$
|
36,875
|
|
|
$
|
238,942
|
|
|
$
|
—
|
|
|
$
|
1,294,964
|
|
|
Less: cost of
purchased coal sold
|
(663,774)
|
|
|
(2,185)
|
|
|
—
|
|
|
—
|
|
|
(665,959)
|
|
|
Adjusted cost of
produced coal sold
|
$
|
355,373
|
|
|
$
|
34,690
|
|
|
$
|
238,942
|
|
|
$
|
—
|
|
|
$
|
629,005
|
|
|
Produced tons
sold
|
4,751
|
|
|
595
|
|
|
6,273
|
|
|
—
|
|
|
11,619
|
|
|
Adjusted cost of
produced coal sold per ton (1)
|
$
|
74.80
|
|
|
$
|
58.30
|
|
|
$
|
38.09
|
|
|
$
|
—
|
|
|
$
|
54.14
|
|
|
|
(1)
|
Cost of produced coal
sold per ton for our operations is calculated as non-GAAP cost of
produced coal sold divided by produced tons sold.
|
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SOURCE Contura Energy, Inc.