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.

(PRNewsfoto/Contura Energy, Inc.)


(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: 

  1. Based on committed and priced coal shipments as of March 6, 2020. 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 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.
  5. 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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