BRISTOL, Tenn., May 11, 2020 /PRNewswire/ -- Contura Energy,
Inc. (NYSE: CTRA), a leading U.S. coal supplier, today reported
results for the first quarter ending March
31, 2020.
|
(millions, except per
share)
|
|
Three months
ended
|
|
Mar. 31,
2020(2)
|
Dec. 31,
2019(2)
|
Mar. 31,
2019(2)
|
|
Net (loss)
income(3)
|
$(39.8)
|
$(191.9)
|
$6.8
|
|
Net (loss)
income(3) per diluted share
|
$(2.18)
|
$(10.54)
|
$0.41
|
|
Adjusted
EBITDA(1)
|
$60.2
|
$31.5
|
$83.4
|
|
Operating cash
flow(4)
|
$(0.1)
|
$(5.7)
|
$14.6
|
|
Capital
expenditures
|
$(49.6)
|
$(48.2)
|
$(41.1)
|
|
Tons of coal
sold
|
5.5
|
5.7
|
5.9
|
|
__________________________________
|
|
|
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, except as noted.
|
|
3. From
continuing operations. First quarter 2020 no longer has
discontinued operations.
|
|
4.
Includes discontinued operations. First quarter 2020 no longer has
discontinued operations.
|
"Among the most significant takeaways from Contura's first
quarter was our team's standout performance controlling costs,"
said chairman and chief executive officer, David Stetson. "Despite the unexpected headwinds
and uncertainty of the coronavirus pandemic, we were still able to
deliver on our operational cost containment goals which resulted in
a superb quarter with strong EBITDA."
Jason Whitehead, Contura's chief
operating officer, commented on the exceptional cost performance
for the quarter saying, "I'm proud to announce that our operations
teams continued to build on our enhanced productivity measures,
with our CAPP - Met cost per ton reaching multi-year lows during
the quarter. We are also back to full staffing and operation as of
May 4 with nearly all of our
previously-furloughed employees having returned to work."
Financial Performance
Contura reported a net loss from continuing operations of
$39.8 million, or $2.18 per diluted share, for the first quarter
2020. The first quarter loss includes a pre-tax, non-cash asset
impairment charge of $33.7 million.
In the fourth quarter 2019, the company had a net loss from
continuing operations, including non-cash asset and goodwill
impairment charges, of $191.9 million
or $10.54 per diluted share.
Total Adjusted EBITDA improved to $60.2
million for the first quarter, compared with $31.5 million in the fourth quarter, primarily
due to strong CAPP - Met cost performance.
Coal Revenues
|
(millions)
|
|
Three months
ended
|
|
Mar. 31,
2020
|
Dec. 31,
2019
|
|
CAPP -
Met
|
$362.4
|
$370.2
|
|
CAPP -
Thermal
|
$38.7
|
$60.6
|
|
NAPP
|
$66.9
|
$65.8
|
|
|
|
CAPP - Met (excl.
f&h)(1)
|
$308.7
|
$310.9
|
|
CAPP - Thermal
(excl. f&h)(1)
|
$35.0
|
$50.1
|
|
NAPP (excl.
f&h)(1)
|
$64.6
|
$62.4
|
|
|
|
Tons Sold
|
(millions)
|
|
Three months
ended
|
|
Mar. 31,
2020
|
Dec. 31,
2019
|
|
CAPP -
Met
|
3.3
|
3.3
|
|
CAPP -
Thermal
|
0.6
|
0.9
|
|
NAPP
|
1.5
|
1.5
|
|
|
__________________________________
|
|
|
1.
Represents Non-GAAP coal revenues which is defined and reconciled
under "Non-GAAP Financial Measures" and "Results of
Operations."
|
The slight CAPP - Met revenue decline in the first quarter was
driven by a 2 percent decline in price realizations relative to the
fourth quarter, while CAPP - Thermal revenues declined as a result
of a 31 percent reduction in tons sold. In the NAPP segment, the
first quarter revenues were essentially flat as compared to the
fourth quarter.
Coal Sales Realization(1)
|
(per ton)
|
|
Three months
ended
|
|
Mar. 31,
2020
|
Dec. 31,
2019
|
|
CAPP -
Met
|
$92.80
|
$94.98
|
|
CAPP -
Thermal
|
$56.73
|
$56.13
|
|
NAPP
|
$42.81
|
$41.17
|
|
|
__________________________________
|
|
|
1.
Represents Non-GAAP coal sales realization which is defined and
reconciled under "Non-GAAP Financial Measures" and "Results of
Operations."
|
Following a soft second half of 2019 for metallurgical coal, the
first quarter 2020 metallurgical coal prices stabilized somewhat
with our average CAPP - Met coal sales realization declining 2
percent to $92.80 per ton against the
prior quarter. The primary driver of lower first quarter
realization was our domestic business, where our annual contracted
pricing is below 2019 levels. Thermal coal price realizations were
fractionally up in the first quarter for both CAPP - Thermal and
NAPP segments.
Cost of Coal Sales
|
|
(in millions, except
per ton data)
|
|
|
|
Three months
ended
|
|
|
|
Mar. 31,
2020
|
|
Dec. 31,
2019
|
|
|
Cost of Coal
Sales
|
|
$397.9
|
|
$444.6
|
|
|
Cost of Coal Sales
(excl. f&h/idle)(1)
|
|
$328.1
|
|
$366.4
|
|
|
|
|
|
|
|
|
|
(per ton)
|
|
|
CAPP -
Met(1)
|
|
$70.68
|
|
$82.26
|
|
|
CAPP -
Thermal(1)
|
|
$53.07
|
|
$49.21
|
|
|
NAPP(1)
|
|
$39.68
|
|
$34.67
|
|
|
|
__________________________________
|
|
|
1.
Represents Non-GAAP cost of coal sales per ton which is defined and
reconciled under "Non-GAAP Financial Measures" and "Results of
Operations."
|
In the first quarter, Contura achieved another strong
improvement in its CAPP - Met segment cost performance with costs
declining from $82.26 per ton in the
fourth quarter to $70.68 per ton in
the first quarter of 2020. Our productivity continued to show
meaningful improvements in the first quarter 2020 with our deep
mines in the CAPP - Met region realizing a 9 percent increase in
feet per shift compared with the prior quarter.
NAPP cost of coal sales for the quarter was impacted by a
longwall move in March, resulting in an approximately $5 per ton increase in costs. CAPP - Thermal cost
of coal sales per ton was higher primarily due to reduced
volume.
Selling, general and administrative (SG&A) and depreciation,
depletion and amortization (DD&A) expenses
|
(millions)
|
|
Three months
ended
|
|
Mar. 31,
2020
|
Dec. 31,
2019
|
|
SG&A
|
$15.5
|
$25.8
|
|
Less: non-cash
stock compensation and one-time expenses
|
$(2.1)
|
$(12.7)
|
|
Non-GAAP
SG&A(1)
|
$13.4
|
$13.1
|
|
|
|
|
DD&A
|
$54.5
|
$43.9
|
|
__________________________________
|
|
|
1.
Represents Non-GAAP SG&A which is defined under "Non-GAAP
Financial Measures."
|
Contura's first quarter 2020 SG&A expenses of $13.4 million, excluding non-cash stock
compensation expense and one-time expenses of $2.1 million, was virtually flat as compared to
the prior quarter.
Liquidity and Capital Resources
"As we continue managing through the uncertainty created by the
COVID-19 pandemic and its impact on the global economy, we believe
cash preservation is of utmost importance for the near term," said
Andy Eidson, Contura's chief
financial officer. "Our previously-announced draw of $57.5 million on our revolver in late March was a
proactive and precautionary measure we took to provide flexibility.
As a result of the CARES Act, we now anticipate an acceleration of
the previously-disclosed AMT tax refund, which we expect to be
approximately $68 million early in
the third quarter of this year and an additional $14 million of payroll tax deferrals until 2021
and 2022."
Cash used in operating activities for the first quarter 2020 was
$0.1 million and capital expenditures
for the first quarter were $49.6
million. In the prior period, the cash used in operating
activities was $5.7 million and
capital expenditures were $48.2
million.
As of March 31, 2020, Contura had
$227.1 million in unrestricted
cash and $155.8 million in restricted
cash, deposits and investments. Total long-term debt, including the
current portion of long-term debt as of March 31, 2020, was approximately $653.0 million. At the end of the first
quarter, the company had total liquidity of $257.1 million, including cash and cash
equivalents of $227.1 million and
$30.0 million of unused commitments
available under the Asset-Based Revolving Credit Facility. The
future available capacity under the Asset-Based Revolving Credit
Facility is subject to inventory and accounts receivable collateral
requirements and the achievement of certain financial ratios. As of
March 31, 2020, the company had
$57.5 million in borrowings and
$119.7 million in letters of credit
outstanding under the Asset-Based Revolving Credit Facility.
Safety and Environmental Awards
Safety and environmental stewardship are critically important to
our everyday operations, and Contura is proud to announce that
several of our operations have earned awards in recognition of
their achievements. The West Virginia State Council of the Joseph
A. Holmes Safety Association has notified the following operations
that they will be receiving a safety award from the Council at a
presentation ceremony later this year: Kingston #1, Black Eagle, Panther Eagle, Allen
Powellton, and Elk Run. In addition to the Council's Safety Special
Recognition award, the Elk Run line crew has reached a significant
milestone of having worked since its inception in 1985 without a
single lost time injury. We congratulate them on 35 years of
outstanding safety performance.
On the environmental side, the company's Bull Run Surface Mine
has been notified that it will receive the 2019 Virginia State
Award for Excellence in Reforestation from the Appalachian Regional
Reforestation Initiative, which will be formally presented later in
the year.
Temporary Operational Changes Update
As we announced on April 3,
certain operations were temporarily idled in response to market
conditions, inventory levels and expected customer deferrals. These
temporary idlings have since been completed or shortened, and as of
May 4, all Contura sites are back to
nearly normal staffing levels and operating capacity with
additional precautions in place to help reduce the risk of exposure
to COVID-19.
Conference Call
The company plans to hold a conference call regarding its first
quarter 2020 results on May 11, 2020,
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://investors.conturaenergy.com/investors. Analysts who
would like to participate in the conference call should dial
866-270-1533 (domestic toll-free) or 412-317-0797 (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
423.956.6882
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 measures
"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
CONDENSED CONSOLIDATED STATEMENTS
OF OPERATIONS (Unaudited)
(Amounts in thousands, except
share and per share data)
|
|
|
|
Three Months Ended
March 31,
|
|
2020
|
|
2019
|
|
Revenues:
|
|
|
|
|
Coal
revenues
|
$
|
468,367
|
|
|
$
|
606,960
|
|
|
Other
revenues
|
2,093
|
|
|
2,154
|
|
|
Total
revenues
|
470,460
|
|
|
609,114
|
|
|
Costs and
expenses:
|
|
|
|
|
Cost of coal sales
(exclusive of items shown separately below)
|
397,860
|
|
|
515,694
|
|
|
Depreciation,
depletion and amortization
|
54,465
|
|
|
61,271
|
|
|
Accretion on asset
retirement obligations
|
7,375
|
|
|
6,232
|
|
|
Amortization of
acquired intangibles, net
|
865
|
|
|
(6,683)
|
|
|
Asset
impairment
|
33,709
|
|
|
—
|
|
|
Selling, general and
administrative expenses (exclusive of depreciation, depletion and
amortization shown separately above)
|
15,481
|
|
|
20,951
|
|
|
Merger-related
costs
|
—
|
|
|
831
|
|
|
Total other operating
(income) loss:
|
|
|
|
|
Mark-to-market
adjustment for acquisition-related obligations
|
(14,997)
|
|
|
1,936
|
|
|
Other
income
|
(580)
|
|
|
(8,899)
|
|
|
Total costs and
expenses
|
494,178
|
|
|
591,333
|
|
|
(Loss) income from
operations
|
(23,718)
|
|
|
17,781
|
|
|
Other income
(expense):
|
|
|
|
|
Interest
expense
|
(17,605)
|
|
|
(15,155)
|
|
|
Interest
income
|
978
|
|
|
1,936
|
|
|
Equity loss in
affiliates
|
(743)
|
|
|
(484)
|
|
|
Miscellaneous loss,
net
|
(908)
|
|
|
(866)
|
|
|
Total other expense,
net
|
(18,278)
|
|
|
(14,569)
|
|
|
(Loss) income from
continuing operations before income taxes
|
(41,996)
|
|
|
3,212
|
|
|
Income tax
benefit
|
2,188
|
|
|
4,778
|
|
|
Net (loss) income
from continuing operations
|
(39,808)
|
|
|
7,990
|
|
|
Discontinued
operations:
|
|
|
|
|
Loss from
discontinued operations before income taxes
|
—
|
|
|
(1,590)
|
|
|
Income tax benefit
from discontinued operations
|
—
|
|
|
415
|
|
|
Loss from
discontinued operations
|
—
|
|
|
(1,175)
|
|
|
Net (loss)
income
|
$
|
(39,808)
|
|
|
$
|
6,815
|
|
|
|
|
|
|
Basic (loss) income
per common share:
|
|
|
|
|
(Loss) income from
continuing operations
|
$
|
(2.18)
|
|
|
$
|
0.42
|
|
|
Loss from
discontinued operations
|
—
|
|
|
(0.06)
|
|
|
Net (loss)
income
|
$
|
(2.18)
|
|
|
$
|
0.36
|
|
|
|
|
|
|
Diluted (loss) income
per common share
|
|
|
|
|
(Loss) income from
continuing operations
|
$
|
(2.18)
|
|
|
$
|
0.41
|
|
|
Loss from
discontinued operations
|
—
|
|
|
(0.06)
|
|
|
Net (loss)
income
|
$
|
(2.18)
|
|
|
$
|
0.35
|
|
|
|
|
|
|
Weighted average
shares - basic
|
18,245,911
|
|
|
18,894,315
|
|
|
Weighted average
shares - diluted
|
18,245,911
|
|
|
19,538,629
|
|
|
CONTURA ENERGY,
INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE
SHEETS (Unaudited)
(Amounts in thousands, except share
and per share data)
|
|
|
|
|
|
March 31,
2020
|
|
December 31,
2019
|
|
Assets
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
|
227,056
|
|
|
$
|
212,793
|
|
|
Trade accounts
receivable, net of allowance for doubtful accounts of $1,213 and $0
as of March 31, 2020 and December 31, 2019
|
245,377
|
|
|
244,666
|
|
|
Inventories,
net
|
184,445
|
|
|
162,659
|
|
|
Prepaid expenses and
other current assets
|
142,151
|
|
|
91,361
|
|
|
Total current
assets
|
799,029
|
|
|
711,479
|
|
|
Property, plant, and
equipment, net of accumulated depreciation and amortization of
$349,444 and $314,276 as of March 31, 2020 and December 31,
2019
|
561,836
|
|
|
583,262
|
|
|
Owned and leased
mineral rights, net of accumulated depletion and amortization of
$33,590 and $27,877 as of March 31, 2020 and December 31,
2019
|
501,061
|
|
|
523,141
|
|
|
Other acquired
intangibles, net of accumulated amortization of $34,631 and $32,686
as of March 31, 2020 and December 31, 2019
|
115,628
|
|
|
125,145
|
|
|
Long-term restricted
cash
|
101,815
|
|
|
122,524
|
|
|
Deferred income
taxes
|
—
|
|
|
33,065
|
|
|
Other non-current
assets
|
212,548
|
|
|
204,207
|
|
|
Total
assets
|
$
|
2,291,917
|
|
|
$
|
2,302,823
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Current portion of
long-term debt
|
$
|
29,529
|
|
|
$
|
28,485
|
|
|
Trade accounts
payable
|
93,953
|
|
|
98,746
|
|
|
Acquisition-related
obligations - current
|
33,211
|
|
|
33,639
|
|
|
Accrued expenses and
other current liabilities
|
146,527
|
|
|
154,282
|
|
|
Total current
liabilities
|
303,220
|
|
|
315,152
|
|
|
Long-term
debt
|
623,474
|
|
|
564,481
|
|
|
Acquisition-related
obligations - long-term
|
30,718
|
|
|
46,259
|
|
|
Workers' compensation
and black lung obligations
|
258,712
|
|
|
260,778
|
|
|
Pension
obligations
|
204,605
|
|
|
204,086
|
|
|
Asset retirement
obligations
|
189,459
|
|
|
184,130
|
|
|
Deferred income
taxes
|
317
|
|
|
422
|
|
|
Other non-current
liabilities
|
27,577
|
|
|
31,393
|
|
|
Total
liabilities
|
1,638,082
|
|
|
1,606,701
|
|
|
Commitments and
Contingencies
|
|
|
|
|
Stockholders'
Equity
|
|
|
|
|
Preferred stock - par
value $0.01, 5.0 million shares authorized, none issued
|
—
|
|
|
—
|
|
|
Common stock - par
value $0.01, 50.0 million shares authorized, 20.5 million
issued and 18.3 million outstanding at March 31, 2020 and 20.5
million issued and 18.2 million outstanding at December 31,
2019
|
205
|
|
|
205
|
|
|
Additional paid-in
capital
|
776,607
|
|
|
775,707
|
|
|
Accumulated other
comprehensive loss
|
(62,626)
|
|
|
(58,616)
|
|
|
Treasury stock, at
cost: 2.3 million shares at March 31, 2020 and December 31,
2019
|
(106,913)
|
|
|
(107,984)
|
|
|
Retained
earnings
|
46,562
|
|
|
86,810
|
|
|
Total stockholders'
equity
|
653,835
|
|
|
696,122
|
|
|
Total liabilities and
stockholders' equity
|
$
|
2,291,917
|
|
|
$
|
2,302,823
|
|
|
CONTURA ENERGY,
INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS
OF CASH FLOWS (Unaudited)
(Amounts in
thousands)
|
|
|
|
Three Months Ended
March 31,
|
|
2020
|
|
2019
|
|
Operating
activities:
|
|
|
|
|
Net (loss)
income
|
$
|
(39,808)
|
|
|
$
|
6,815
|
|
|
Adjustments to
reconcile net (loss) income to net cash (used in) provided by
operating activities:
|
|
|
|
|
Depreciation,
depletion and amortization
|
54,465
|
|
|
61,271
|
|
|
Amortization of
acquired intangibles, net
|
865
|
|
|
(6,683)
|
|
|
Accretion of
acquisition-related obligations discount
|
1,092
|
|
|
1,575
|
|
|
Amortization of debt
issuance costs and accretion of debt discount
|
3,659
|
|
|
3,262
|
|
|
Mark-to-market
adjustment for acquisition-related obligations
|
(14,997)
|
|
|
1,936
|
|
|
Gain on disposal of
assets
|
(745)
|
|
|
—
|
|
|
Gain on assets
acquired in an exchange transaction
|
—
|
|
|
(9,083)
|
|
|
Asset
impairment
|
33,709
|
|
|
—
|
|
|
Accretion on asset
retirement obligations
|
7,375
|
|
|
6,232
|
|
|
Employee benefit
plans, net
|
5,346
|
|
|
3,926
|
|
|
Deferred income
taxes
|
32,960
|
|
|
(5,597)
|
|
|
Stock-based
compensation
|
2,078
|
|
|
5,319
|
|
|
Equity loss in
affiliates
|
743
|
|
|
484
|
|
|
Other, net
|
808
|
|
|
(25)
|
|
|
Changes in operating
assets and liabilities
|
(87,610)
|
|
|
(54,821)
|
|
|
Net cash (used in)
provided by operating activities
|
(60)
|
|
|
14,611
|
|
|
Investing
activities:
|
|
|
|
|
Capital
expenditures
|
(49,559)
|
|
|
(41,084)
|
|
|
Proceeds on disposal
of assets
|
208
|
|
|
—
|
|
|
Purchases of
investment securities
|
(12,435)
|
|
|
(4,308)
|
|
|
Maturity of
investment securities
|
3,918
|
|
|
3,202
|
|
|
Capital contributions
to equity affiliates
|
(915)
|
|
|
(3,536)
|
|
|
Other, net
|
12
|
|
|
403
|
|
|
Net cash used in
investing activities
|
(58,771)
|
|
|
(45,323)
|
|
|
Financing
activities:
|
|
|
|
|
Proceeds from
borrowings on debt
|
57,500
|
|
|
—
|
|
|
Principal repayments
of debt
|
(1,404)
|
|
|
(6,875)
|
|
|
Principal repayments
of notes payable
|
(49)
|
|
|
—
|
|
|
Principal repayments
of financing lease obligations
|
(803)
|
|
|
(635)
|
|
|
Common stock
repurchases and related expenses
|
(108)
|
|
|
(4,171)
|
|
|
Other, net
|
—
|
|
|
(105)
|
|
|
Net cash provided
by (used in) financing activities
|
55,136
|
|
|
(11,786)
|
|
|
Net decrease in cash
and cash equivalents and restricted cash
|
(3,695)
|
|
|
(42,498)
|
|
|
Cash and cash
equivalents and restricted cash at beginning of period
|
347,680
|
|
|
477,246
|
|
|
Cash and cash
equivalents and restricted cash at end of period
|
$
|
343,985
|
|
|
$
|
434,748
|
|
|
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,
|
|
2020
|
|
2019
|
|
Cash and cash
equivalents
|
$
|
227,056
|
|
|
$
|
181,953
|
|
|
Short-term restricted
cash (included in prepaid expenses and other current
assets)
|
15,114
|
|
|
19,307
|
|
|
Long-term restricted
cash
|
101,815
|
|
|
233,488
|
|
|
Total cash and cash
equivalents and restricted cash shown in the Condensed Consolidated
Statements of Cash Flows
|
$
|
343,985
|
|
|
$
|
434,748
|
|
|
CONTURA ENERGY,
INC. AND SUBSIDIARIES
ADJUSTED EBITDA
RECONCILIATION
(Amounts in thousands)
|
|
|
|
Three Months
Ended
|
|
March 30,
2020
|
|
March 31,
2019
|
|
December 31,
2019
|
|
Net (loss) income
from continuing operations
|
$
|
(39,808)
|
|
|
$
|
7,990
|
|
|
$
|
(191,871)
|
|
|
Interest
expense
|
17,605
|
|
|
15,155
|
|
|
16,719
|
|
|
Interest
income
|
(978)
|
|
|
(1,936)
|
|
|
(1,712)
|
|
|
Income tax
benefit
|
(2,188)
|
|
|
(4,778)
|
|
|
(48,677)
|
|
|
Depreciation,
depletion and amortization
|
54,465
|
|
|
61,271
|
|
|
43,865
|
|
|
Merger-related
costs
|
—
|
|
|
831
|
|
|
35
|
|
|
Management
restructuring costs (1)
|
947
|
|
|
—
|
|
|
7,720
|
|
|
Non-cash stock
compensation expense
|
2,078
|
|
|
5,271
|
|
|
4,885
|
|
|
Mark-to-market
adjustment - acquisition-related obligations
|
(14,997)
|
|
|
1,936
|
|
|
(3,276)
|
|
|
Accretion on asset
retirement obligations
|
7,375
|
|
|
6,232
|
|
|
7,873
|
|
|
Asset impairment
(2)
|
33,709
|
|
|
—
|
|
|
60,466
|
|
|
Goodwill impairment
(3)
|
—
|
|
|
—
|
|
|
124,353
|
|
|
Cost impact of coal
inventory fair value adjustment (4)
|
—
|
|
|
7,176
|
|
|
—
|
|
|
Gain on assets
acquired in an exchange transaction (5)
|
—
|
|
|
(9,083)
|
|
|
—
|
|
|
Loss on partial
settlement of benefit obligations
|
1,167
|
|
|
—
|
|
|
6,446
|
|
|
Amortization of
acquired intangibles, net
|
865
|
|
|
(6,683)
|
|
|
4,624
|
|
|
Adjusted
EBITDA
|
$
|
60,240
|
|
|
$
|
83,382
|
|
|
$
|
31,450
|
|
|
|
(1)
Management restructuring costs are related to severance expense
associated with senior management changes.
|
|
(2) Asset
impairment for the three months ended March 31, 2020 includes a
long-lived asset impairment related to asset groups recorded within
the CAPP - Met and CAPP - Thermal reporting segments. Asset
impairment for the three months ended December 31, 2019 primarily
relates to a long-lived asset impairment of $60,169 related to
asset groups recorded within the CAPP - Met and CAPP - Thermal
reporting segments.
|
|
(3) 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.
|
|
(4) 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.
|
|
(5) During
the three months ended March 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
March 31, 2020
|
|
(In thousands,
except for per ton data)
|
CAPP -
Met
|
|
CAPP -
Thermal
|
|
NAPP
|
|
All
Other
|
|
Consolidated
|
|
Coal
revenues
|
$
|
362,403
|
|
|
$
|
38,743
|
|
|
$
|
66,907
|
|
|
$
|
314
|
|
|
$
|
468,367
|
|
|
Less: freight and
handling fulfillment revenues
|
(53,664)
|
|
|
(3,743)
|
|
|
(2,346)
|
|
|
—
|
|
|
(59,753)
|
|
|
Non-GAAP coal
revenues
|
$
|
308,739
|
|
|
$
|
35,000
|
|
|
$
|
64,561
|
|
|
$
|
314
|
|
|
$
|
408,614
|
|
|
Tons sold
|
3,327
|
|
|
617
|
|
|
1,508
|
|
|
5
|
|
|
5,457
|
|
|
Non-GAAP coal sales
realization per ton
|
$
|
92.80
|
|
|
$
|
56.73
|
|
|
$
|
42.81
|
|
|
$
|
62.80
|
|
|
$
|
74.88
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of coal
sales
|
$
|
292,972
|
|
|
$
|
38,482
|
|
|
$
|
63,013
|
|
|
$
|
3,393
|
|
|
$
|
397,860
|
|
|
Less: freight and
handling costs
|
(53,664)
|
|
|
(3,743)
|
|
|
(2,346)
|
|
|
—
|
|
|
(59,753)
|
|
|
Less: idled and
closed mine costs
|
(4,157)
|
|
|
(1,995)
|
|
|
(825)
|
|
|
(3,079)
|
|
|
(10,056)
|
|
|
Non-GAAP cost of coal
sales
|
$
|
235,151
|
|
|
$
|
32,744
|
|
|
$
|
59,842
|
|
|
$
|
314
|
|
|
$
|
328,051
|
|
|
Tons sold
|
3,327
|
|
|
617
|
|
|
1,508
|
|
|
5
|
|
|
5,457
|
|
|
Non-GAAP cost of coal
sales per ton
|
$
|
70.68
|
|
|
$
|
53.07
|
|
|
$
|
39.68
|
|
|
$
|
62.80
|
|
|
$
|
60.12
|
|
|
|
|
|
|
|
|
|
|
|
|
Coal margin per ton
(1)
|
$
|
20.87
|
|
|
$
|
0.42
|
|
|
$
|
2.58
|
|
|
$
|
(615.80)
|
|
|
$
|
12.92
|
|
|
Idled and closed mine
costs per ton
|
1.25
|
|
|
3.24
|
|
|
0.55
|
|
|
615.80
|
|
|
1.84
|
|
|
Non-GAAP coal margin
per ton
|
$
|
22.12
|
|
|
$
|
3.66
|
|
|
$
|
3.13
|
|
|
$
|
—
|
|
|
$
|
14.76
|
|
|
|
|
(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 Months Ended
March 31, 2019
|
|
(In thousands,
except for per ton data)
|
CAPP -
Met
|
|
CAPP -
Thermal
|
|
NAPP
|
|
All
Other
|
|
Consolidated
|
|
Coal
revenues
|
$
|
472,491
|
|
|
$
|
62,939
|
|
|
$
|
71,530
|
|
|
$
|
—
|
|
|
$
|
606,960
|
|
|
Less: freight and
handling fulfillment revenues
|
(64,901)
|
|
|
(5,624)
|
|
|
(675)
|
|
|
—
|
|
|
(71,200)
|
|
|
Non-GAAP coal
revenues
|
$
|
407,590
|
|
|
$
|
57,315
|
|
|
$
|
70,855
|
|
|
$
|
—
|
|
|
$
|
535,760
|
|
|
Tons sold
|
3,243
|
|
|
992
|
|
|
1,652
|
|
|
—
|
|
|
5,887
|
|
|
Non-GAAP coal sales
realization per ton
|
$
|
125.68
|
|
|
$
|
57.78
|
|
|
$
|
42.89
|
|
|
$
|
—
|
|
|
$
|
91.01
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of coal
sales
|
$
|
375,919
|
|
|
$
|
70,713
|
|
|
$
|
67,562
|
|
|
$
|
1,500
|
|
|
$
|
515,694
|
|
|
Less: freight and
handling costs
|
(64,901)
|
|
|
(5,624)
|
|
|
(675)
|
|
|
—
|
|
|
(71,200)
|
|
|
Less: idled and
closed mine costs
|
(1,821)
|
|
|
(417)
|
|
|
(829)
|
|
|
(1,295)
|
|
|
(4,362)
|
|
|
Less: cost impact of
coal inventory fair value adjustment (1)
|
(3,718)
|
|
|
(3,458)
|
|
|
—
|
|
|
—
|
|
|
(7,176)
|
|
|
Non-GAAP cost of coal
sales
|
$
|
305,479
|
|
|
$
|
61,214
|
|
|
$
|
66,058
|
|
|
$
|
205
|
|
|
$
|
432,956
|
|
|
Tons sold
|
3,243
|
|
|
992
|
|
|
1,652
|
|
|
—
|
|
|
5,887
|
|
|
Non-GAAP cost of coal
sales per ton
|
$
|
94.20
|
|
|
$
|
61.71
|
|
|
$
|
39.99
|
|
|
$
|
—
|
|
|
$
|
73.54
|
|
|
|
|
|
|
|
|
|
|
|
|
Coal margin per ton
(2)
|
$
|
29.78
|
|
|
$
|
(7.84)
|
|
|
$
|
2.40
|
|
|
$
|
—
|
|
|
$
|
15.50
|
|
|
Idled and closed mine
costs per ton
|
0.55
|
|
|
0.42
|
|
|
0.50
|
|
|
—
|
|
|
0.75
|
|
|
Cost impact of coal
inventory fair value adjustment per ton
|
1.15
|
|
|
3.49
|
|
|
—
|
|
|
—
|
|
|
1.22
|
|
|
Non-GAAP coal margin
per ton
|
$
|
31.48
|
|
|
$
|
(3.93)
|
|
|
$
|
2.90
|
|
|
$
|
—
|
|
|
$
|
17.47
|
|
|
|
(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 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
March 31, 2020
|
|
(In thousands,
except for per ton data)
|
CAPP -
Met
|
|
CAPP -
Thermal
|
|
NAPP
|
|
All
Other
|
|
Consolidated
|
|
Non-GAAP cost of coal
sales
|
$
|
235,151
|
|
|
$
|
32,744
|
|
|
$
|
59,842
|
|
|
$
|
314
|
|
|
$
|
328,051
|
|
|
Less: cost of
purchased coal sold
|
(30,334)
|
|
|
(893)
|
|
|
—
|
|
|
—
|
|
|
(31,227)
|
|
|
Adjusted cost of
produced coal sold
|
$
|
204,817
|
|
|
$
|
31,851
|
|
|
$
|
59,842
|
|
|
$
|
314
|
|
|
$
|
296,824
|
|
|
Produced tons
sold
|
2,964
|
|
|
604
|
|
|
1,508
|
|
|
5
|
|
|
5,081
|
|
|
Adjusted cost of
produced coal sold per ton (1)
|
$
|
69.10
|
|
|
$
|
52.73
|
|
|
$
|
39.68
|
|
|
$
|
62.80
|
|
|
$
|
58.42
|
|
|
|
(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
March 31, 2019
|
|
(In thousands,
except for per ton data)
|
CAPP -
Met
|
|
CAPP -
Thermal
|
|
NAPP
|
|
All
Other
|
|
Consolidated
|
|
Non-GAAP cost of coal
sales
|
$
|
305,479
|
|
|
$
|
61,214
|
|
|
$
|
66,058
|
|
|
$
|
205
|
|
|
$
|
432,956
|
|
|
Less: cost of
purchased coal sold
|
(79,539)
|
|
|
(2,884)
|
|
|
—
|
|
|
—
|
|
|
(82,423)
|
|
|
Adjusted cost of
produced coal sold
|
$
|
225,940
|
|
|
$
|
58,330
|
|
|
$
|
66,058
|
|
|
$
|
205
|
|
|
$
|
350,533
|
|
|
Produced tons
sold
|
2,571
|
|
|
944
|
|
|
1,652
|
|
|
—
|
|
|
5,167
|
|
|
Adjusted cost of
produced coal sold per ton (1)
|
$
|
87.88
|
|
|
$
|
61.79
|
|
|
$
|
39.99
|
|
|
$
|
—
|
|
|
$
|
67.84
|
|
|
|
(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.
|
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SOURCE Contura Energy, Inc.