BRISTOL, Tenn., Aug. 7, 2020 /PRNewswire/ -- Contura Energy,
Inc. (NYSE: CTRA), a leading U.S. coal supplier, today reported
results for the second quarter ending June
30, 2020.
|
(millions, except per
share)
|
|
Three months
ended
|
|
June 30,
2020
|
Mar. 31,
2020
|
June 30,
2019(2)
|
Net (loss)
income(3)
|
$(238.3)
|
$(39.8)
|
$24.3
|
Net (loss)
income(3) per diluted share
|
$(13.02)
|
$(2.18)
|
$1.25
|
Adjusted
EBITDA(1)
|
$16.9
|
$60.2
|
$140.8
|
Operating cash
flow(4)
|
$79.0
|
$(0.1)
|
$102.5
|
Capital
expenditures
|
$(41.5)
|
$(49.6)
|
$(42.8)
|
Tons of coal
sold
|
5.1
|
5.5
|
6.4
|
__________________________________
|
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 and second quarters 2020 no longer have
discontinued operations.
|
4.
|
Includes discontinued
operations. First and second quarters 2020 no longer have
discontinued operations.
|
"Our second quarter results serve as continued evidence of
Contura's commitment to adeptly managing through the current global
uncertainty," said chairman and chief executive officer,
David Stetson. "Even with a
weeks-long furlough in April, our team increased our cash
quarter-over-quarter, lowered our overall debt, and kept costs
roughly on par with our stellar first quarter cost performance. As
we look to the back half of 2020, we believe these steps to
streamline our company will serve us well despite any additional
market fluctuations that may occur."
Financial Performance
Contura reported a net loss from continuing operations of
$238.3 million, or $13.02 per diluted share, for the second quarter
2020. The second quarter loss includes a pre-tax, non-cash asset
impairment charge of $161.7 million,
which resulted primarily from our strategic decisions to idle the
Kielty mine and not pursue the new impoundment at Cumberland resulting in a significantly
shorter mine life. In the first quarter 2020, the company had a net
loss from continuing operations, including non-cash asset
impairment charges of $33.7 million,
of $39.8 million or $2.18 diluted share.
Total Adjusted EBITDA was $17
million for the second quarter, compared with $60 million in the first quarter, primarily due
to lower CAPP - Met price realizations.
Coal Revenues
|
(millions)
|
|
Three months
ended
|
|
June 30,
2020
|
Mar. 31,
2020
|
CAPP -
Met
|
$316.3
|
$362.4
|
CAPP -
Thermal
|
$36.7
|
$38.7
|
NAPP
|
$57.5
|
$66.9
|
CAPP - Met (excl.
f&h)(1)
|
$261.5
|
$308.7
|
CAPP - Thermal
(excl. f&h)(1)
|
$32.1
|
$35.0
|
NAPP (excl.
f&h)(1)
|
$52.0
|
$64.6
|
|
|
|
Tons Sold
|
(millions)
|
|
Three months
ended
|
|
June 30,
2020
|
Mar. 31,
2020
|
CAPP -
Met
|
3.2
|
3.3
|
CAPP -
Thermal
|
0.6
|
0.6
|
NAPP
|
1.3
|
1.5
|
__________________________________
|
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 second quarter was driven
by an $11 per ton decline in price
realizations relative to the first quarter. CAPP - Thermal revenues
also declined quarter-over-quarter due to lower realized prices.
Second quarter NAPP revenues were lower as a result of lower
volumes and prices.
Coal Sales Realization(1)
|
(per ton)
|
|
Three months
ended
|
|
June 30,
2020
|
Mar. 31,
2020
|
CAPP -
Met
|
$81.61
|
$92.80
|
CAPP -
Thermal
|
$49.52
|
$56.73
|
NAPP
|
$40.19
|
$42.81
|
__________________________________
|
1.
|
Represents Non-GAAP
coal sales realization which is defined and reconciled under
"Non-GAAP Financial Measures" and "Results of
Operations."
|
The second quarter 2020 metallurgical coal prices continued
softening, with our average CAPP - Met coal sales realization
declining 12 percent to $81.61 per
ton against the prior quarter. While our domestic business
continues to benefit from annual fixed price contracts, the lower
second quarter realizations were primarily driven by our export
business, where prices declined as a result of COVID-19 related
demand reduction. Thermal coal price realizations were also
impacted by reduced demand in the second quarter with both CAPP -
Thermal and NAPP segments experiencing lower realizations.
Cost of Coal Sales
|
(in millions, except
per ton data)
|
|
Three months
ended
|
|
June 30,
2020
|
Mar. 31,
2020
|
Cost of Coal
Sales
|
$383.3
|
$397.9
|
Cost of Coal Sales
(excl. f&h/idle)(1)
|
$310.5
|
$328.1
|
|
|
|
(per ton)
|
CAPP -
Met(1)
|
$74.41
|
$70.68
|
CAPP -
Thermal(1)
|
$45.38
|
$53.07
|
NAPP(1)
|
$32.98
|
$39.68
|
__________________________________
|
1.
|
Represents Non-GAAP
cost of coal sales per ton which is defined and reconciled under
"Non-GAAP Financial Measures" and "Results of
Operations."
|
Contura achieved continued strong cost performance in its CAPP -
Met segment in the second quarter. The reported second quarter cost
of coal sales was $74.41 per ton
versus $70.68 per ton in the first
quarter. Excluding the impact of the April furloughs, incremental
one-time COVID-19 mitigation costs, and the partially offsetting
benefit from an annual severance tax adjustment, the second quarter
cost of coal sales were roughly on par with first quarter.
NAPP cost of coal sales for the quarter was $32.98 per ton, down from $39.68 per ton in the first quarter, which was
impacted by a longwall move in March. CAPP - Thermal also reported
solid cost of coal sales performance, improving to $45.38 per ton for the quarter as compared to
$53.07 for the prior quarter.
Selling, general and administrative (SG&A) and depreciation,
depletion and amortization (DD&A) expenses
|
(millions)
|
|
Three months
ended
|
|
June 30,
2020
|
Mar. 31,
2020
|
SG&A
|
$12.0
|
$15.5
|
Less: non-cash
stock compensation and one-time expenses
|
$(1.9)
|
$(2.1)
|
Non-GAAP
SG&A(1)
|
$10.1
|
$13.4
|
|
|
|
DD&A
|
$49.3
|
$54.5
|
__________________________________
|
1.
|
Represents Non-GAAP
SG&A which is defined under "Non-GAAP Financial
Measures."
|
As a result of additional overhead reductions, Contura's second
quarter 2020 SG&A expenses were $10.1
million, excluding non-cash stock compensation expense and
one-time expenses of $1.9 million,
and down $3.3 million from the prior
quarter. Contura expects non-GAAP SG&A expenses for the full
year 2020 to be in the range of $45
million to $50 million.
Liquidity and Capital Resources
"In response to the wide-ranging impacts of the COVID-19
pandemic, we took aggressive action in early April to optimize cash
by temporarily idling certain operations, which resulted in a
$41 million reduction in inventory
and overall net working capital change of $99 million in the second quarter," said
Andy Eidson, Contura's chief
financial officer. "As we continue to analyze our liquidity, we
expect capex for the remainder of the year to be in the
$45-$50
million range, and we still anticipate receiving an
accelerated AMT tax refund of approximately $66 million in the second half of the year and
approximately $14 million of payroll
tax deferrals until 2021 and 2022."
Cash provided by operating activities for the second quarter
2020 was $79.0 million and capital
expenditures for the second quarter were $41.5 million. In the prior period, the cash used
in operating activities was $0.1
million and capital expenditures were $49.6 million. Contura expects capital
expenditures for the full year 2020 to be in the range of
$135 million to $140 million.
As of June 30, 2020, Contura had
$238.4 million in unrestricted
cash and $157.5 million in restricted
cash, deposits and investments. Total long-term debt, including the
current portion of long-term debt as of June
30, 2020, was $628.1 million,
down approximately $25 million from
the prior quarter. At the end of the second quarter, the
company had total liquidity of $240.2
million, including cash and cash equivalents of $238.4 million and $1.8
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 June 30, 2020, the company had $30.8 million in borrowings and $121.7 million in letters of credit outstanding
under the Asset-Based Revolving Credit Facility.
Operational and Strategic Update
As previously announced, certain operations were temporarily
idled in early April in response to market conditions, inventory
levels and expected customer deferrals. As of May 4, all Contura sites were back to nearly
normal staffing levels and operating capacity with additional
precautions in place to help reduce the risk of exposure to
COVID-19.
On May 29, two previously
wholly-owned subsidiaries of Contura Energy—Contura Coal West, LLC
and Contura Wyoming Land, LLC—merged with certain subsidiaries of
Eagle Specialty Materials, LLC. In completing this transaction,
Contura ended its connection with the Powder River Basin.
On June 22, the company announced
that its Ruby Energy (also known as Kielty) underground mine and
the Delbarton Preparation Plant were to be idled due to adverse
market conditions and uneconomic pricing and cost structures.
Kielty produces both thermal and metallurgical coal.
During the second quarter, the company also decided against
spending over $60 million for a
refuse impoundment at Cumberland Mine and amended its supply
agreements to expire as of December 31,
2022. Unless a buyer emerges for the Cumberland Mine, the
company will cease operations upon the expiration of its
outstanding coal supply commitments in late 2022 or early 2023.
Also in June, the company completed the acquisition of the Feats
Loadout facility in Logan County, West
Virginia, which is served by the CSX railroad. With this
transaction, Contura adds transportation optionality to its
existing network and increased ability to leverage low vol
metallurgical coal sales opportunities through Dominion Terminal
Associates.
Looking ahead, the company continues to progress on its capital
projects and its shift to higher-quality, lower-cost mines. "Even
in spite of the disruptions caused by the COVID-19 pandemic,
development at our new metallurgical mines remains on schedule,"
said Jason Whitehead, Contura's
chief operating officer. "The low vol Road Fork No. 52 Mine added a
second production section in mid-June, and will be positioned to be
at three sections by the first of 2021, while the high vol project
at Lynn Branch has completed
initial underground cuts and expects to be in production by the
fourth quarter of this year. The Black Eagle Mine, our high vol A
project, is progressing well through the corridor to the main
reserve block, which we anticipate to be in production by next
year."
Conference Call
The company plans to hold a conference call regarding its second
quarter 2020 results on August 7,
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 15 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, depreciation, depletion
and amortization - production (excluding the depreciation,
depletion and amortization related to selling, general and
administrative functions), accretion on asset retirement
obligations, amortization of acquired intangibles, net, 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
June 30,
|
|
Six Months Ended
June 30,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Revenues:
|
|
|
|
|
|
|
|
Coal
revenues
|
$
|
410,614
|
|
|
$
|
653,828
|
|
|
$
|
878,981
|
|
|
$
|
1,260,788
|
|
Other
revenues
|
1,224
|
|
|
2,378
|
|
|
3,317
|
|
|
4,532
|
|
Total
revenues
|
411,838
|
|
|
656,206
|
|
|
882,298
|
|
|
1,265,320
|
|
Costs and
expenses:
|
|
|
|
|
|
|
|
Cost of coal sales
(exclusive of items shown separately below)
|
383,279
|
|
|
496,746
|
|
|
781,139
|
|
|
1,012,440
|
|
Depreciation,
depletion and amortization
|
49,262
|
|
|
62,814
|
|
|
103,727
|
|
|
124,085
|
|
Accretion on asset
retirement obligations
|
7,304
|
|
|
6,847
|
|
|
14,679
|
|
|
13,079
|
|
Amortization of
acquired intangibles, net
|
2,096
|
|
|
(343)
|
|
|
2,961
|
|
|
(7,026)
|
|
Asset impairment and
restructuring
|
184,173
|
|
|
5,826
|
|
|
217,882
|
|
|
5,826
|
|
Selling, general and
administrative expenses (exclusive of depreciation, depletion and
amortization shown separately above)
|
12,028
|
|
|
14,783
|
|
|
27,509
|
|
|
35,734
|
|
Merger-related
costs
|
—
|
|
|
156
|
|
|
—
|
|
|
987
|
|
Total other operating
(income) loss:
|
|
|
|
|
|
|
|
Mark-to-market
adjustment for acquisition-related obligations
|
(2,052)
|
|
|
1,014
|
|
|
(17,049)
|
|
|
2,950
|
|
Other (income)
expense
|
(124)
|
|
|
1,414
|
|
|
(704)
|
|
|
(7,485)
|
|
Total costs and
expenses
|
635,966
|
|
|
589,257
|
|
|
1,130,144
|
|
|
1,180,590
|
|
(Loss) income from
operations
|
(224,128)
|
|
|
66,949
|
|
|
(247,846)
|
|
|
84,730
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
Interest
expense
|
(18,814)
|
|
|
(16,077)
|
|
|
(36,419)
|
|
|
(31,232)
|
|
Interest
income
|
5,533
|
|
|
1,885
|
|
|
6,511
|
|
|
3,821
|
|
Loss on modification
and extinguishment of debt
|
—
|
|
|
(26,459)
|
|
|
—
|
|
|
(26,459)
|
|
Equity loss in
affiliates
|
(1,047)
|
|
|
(2,475)
|
|
|
(1,790)
|
|
|
(2,959)
|
|
Miscellaneous loss,
net
|
188
|
|
|
(523)
|
|
|
(720)
|
|
|
(1,389)
|
|
Total other expense,
net
|
(14,140)
|
|
|
(43,649)
|
|
|
(32,418)
|
|
|
(58,218)
|
|
(Loss) income from
continuing operations before income taxes
|
(238,268)
|
|
|
23,300
|
|
|
(280,264)
|
|
|
26,512
|
|
Income tax (expense)
benefit
|
(33)
|
|
|
1,000
|
|
|
2,155
|
|
|
5,778
|
|
Net (loss) income
from continuing operations
|
(238,301)
|
|
|
24,300
|
|
|
(278,109)
|
|
|
32,290
|
|
Discontinued
operations:
|
|
|
|
|
|
|
|
Loss from discontinued
operations before income taxes
|
—
|
|
|
(163,867)
|
|
|
—
|
|
|
(165,457)
|
|
Income tax benefit from
discontinued operations
|
—
|
|
|
25,906
|
|
|
—
|
|
|
26,321
|
|
Loss from discontinued
operations
|
—
|
|
|
(137,961)
|
|
|
—
|
|
|
(139,136)
|
|
Net loss
|
$
|
(238,301)
|
|
|
$
|
(113,661)
|
|
|
$
|
(278,109)
|
|
|
$
|
(106,846)
|
|
|
|
|
|
|
|
|
|
Basic loss per common
share:
|
|
|
|
|
|
|
|
(Loss) income from
continuing operations
|
$
|
(13.02)
|
|
|
$
|
1.27
|
|
|
$
|
(15.22)
|
|
|
$
|
1.70
|
|
Loss from discontinued
operations
|
—
|
|
|
(7.21)
|
|
|
—
|
|
|
(7.32)
|
|
Net loss
|
$
|
(13.02)
|
|
|
$
|
(5.94)
|
|
|
$
|
(15.22)
|
|
|
$
|
(5.62)
|
|
|
|
|
|
|
|
|
|
Diluted loss per
common share
|
|
|
|
|
|
|
|
(Loss) income from
continuing operations
|
$
|
(13.02)
|
|
|
$
|
1.25
|
|
|
$
|
(15.22)
|
|
|
$
|
1.66
|
|
Loss from discontinued
operations
|
—
|
|
|
(7.10)
|
|
|
—
|
|
|
(7.14)
|
|
Net loss
|
$
|
(13.02)
|
|
|
$
|
(5.85)
|
|
|
$
|
(15.22)
|
|
|
$
|
(5.48)
|
|
|
|
|
|
|
|
|
|
Weighted average
shares – basic
|
18,304,853
|
|
|
19,123,705
|
|
|
18,275,382
|
|
|
19,009,643
|
|
Weighted average
shares – diluted
|
18,304,853
|
|
|
19,420,471
|
|
|
18,275,382
|
|
|
19,480,183
|
|
CONTURA ENERGY,
INC. AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED BALANCE SHEETS (Unaudited)
|
(Amounts in
thousands, except share and per share data)
|
|
|
June 30,
2020
|
|
December 31,
2019
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
238,438
|
|
|
$
|
212,793
|
|
Trade accounts
receivable, net of allowance for doubtful accounts of $793 and $0
as of June 30, 2020 and December 31, 2019
|
183,820
|
|
|
244,666
|
|
Inventories,
net
|
143,198
|
|
|
162,659
|
|
Prepaid expenses and
other current assets
|
122,354
|
|
|
91,361
|
|
Total current
assets
|
687,810
|
|
|
711,479
|
|
Property, plant, and
equipment, net of accumulated depreciation and amortization of
$351,561 and $314,276 as of June 30, 2020 and
December 31, 2019
|
423,367
|
|
|
583,262
|
|
Owned and leased
mineral rights, net of accumulated depletion and amortization of
$34,961 and $27,877 as of June 30, 2020 and December 31,
2019
|
495,303
|
|
|
523,141
|
|
Other acquired
intangibles, net of accumulated amortization of $35,717 and $32,686
as of June 30, 2020 and December 31, 2019
|
103,439
|
|
|
125,145
|
|
Long-term restricted
cash
|
109,930
|
|
|
122,524
|
|
Deferred income
taxes
|
—
|
|
|
33,065
|
|
Other non-current
assets
|
220,389
|
|
|
204,207
|
|
Total
assets
|
$
|
2,040,238
|
|
|
$
|
2,302,823
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
Current
liabilities:
|
|
|
|
Current portion of
long-term debt
|
$
|
30,390
|
|
|
$
|
28,485
|
|
Trade accounts
payable
|
70,027
|
|
|
98,746
|
|
Acquisition-related
obligations – current
|
30,019
|
|
|
33,639
|
|
Accrued expenses and
other current liabilities
|
161,453
|
|
|
154,282
|
|
Total current
liabilities
|
291,889
|
|
|
315,152
|
|
Long-term
debt
|
597,706
|
|
|
564,481
|
|
Acquisition-related
obligations - long-term
|
18,283
|
|
|
46,259
|
|
Workers' compensation
and black lung obligations
|
266,390
|
|
|
260,778
|
|
Pension
obligations
|
198,582
|
|
|
204,086
|
|
Asset retirement
obligations
|
207,001
|
|
|
184,130
|
|
Deferred income
taxes
|
389
|
|
|
422
|
|
Other non-current
liabilities
|
50,583
|
|
|
31,393
|
|
Total
liabilities
|
1,630,823
|
|
|
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, 20.6 million issued
and 18.3 million outstanding at June 30, 2020 and 20.5 million
issued and 18.2 million outstanding at December 31,
2019
|
206
|
|
|
205
|
|
Additional paid-in
capital
|
777,650
|
|
|
775,707
|
|
Accumulated other
comprehensive loss
|
(69,747)
|
|
|
(58,616)
|
|
Treasury stock, at
cost: 2.3 million shares at June 30, 2020 and
December 31, 2019
|
(106,955)
|
|
|
(107,984)
|
|
Retained
earnings
|
(191,739)
|
|
|
86,810
|
|
Total stockholders'
equity
|
409,415
|
|
|
696,122
|
|
Total liabilities and
stockholders' equity
|
$
|
2,040,238
|
|
|
$
|
2,302,823
|
|
CONTURA ENERGY,
INC. AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
|
(Amounts in
thousands)
|
|
|
Six Months Ended
June 30,
|
|
2020
|
|
2019
|
Operating
activities:
|
|
|
|
Net loss
|
$
|
(278,109)
|
|
|
$
|
(106,846)
|
|
Adjustments to
reconcile net loss to net cash provided by operating
activities:
|
|
|
|
Depreciation, depletion
and amortization
|
103,727
|
|
|
269,997
|
|
Amortization of
acquired intangibles, net
|
2,961
|
|
|
(7,026)
|
|
Accretion of
acquisition-related obligations discount
|
2,227
|
|
|
3,220
|
|
Amortization of debt
issuance costs and accretion of debt discount
|
7,389
|
|
|
6,724
|
|
Mark-to-market
adjustment for acquisition-related obligations
|
(17,049)
|
|
|
2,950
|
|
(Gain) loss on disposal
of assets
|
(755)
|
|
|
1,372
|
|
Gain on assets acquired
in an exchange transaction
|
—
|
|
|
(9,083)
|
|
Loss on modification
and extinguishment of debt
|
—
|
|
|
26,459
|
|
Asset impairment and
restructuring
|
217,882
|
|
|
22,294
|
|
Accretion on asset
retirement obligations
|
14,679
|
|
|
13,079
|
|
Employee benefit plans,
net
|
10,605
|
|
|
9,564
|
|
Deferred income
taxes
|
33,032
|
|
|
(33,623)
|
|
Stock-based
compensation
|
3,121
|
|
|
4,774
|
|
Equity loss in
affiliates
|
1,790
|
|
|
2,959
|
|
Other, net
|
92
|
|
|
405
|
|
Changes in operating
assets and liabilities
|
(22,654)
|
|
|
(90,086)
|
|
Net cash provided by
operating activities
|
78,938
|
|
|
117,133
|
|
Investing
activities:
|
|
|
|
Capital
expenditures
|
(91,090)
|
|
|
(83,882)
|
|
Proceeds on disposal of
assets
|
1,285
|
|
|
1,048
|
|
Purchases of investment
securities
|
(18,607)
|
|
|
(9,899)
|
|
Maturity of investment
securities
|
10,653
|
|
|
21,316
|
|
Capital contributions
to equity affiliates
|
(2,416)
|
|
|
(4,807)
|
|
Other, net
|
47
|
|
|
93
|
|
Net cash used in
investing activities
|
(100,128)
|
|
|
(76,131)
|
|
Financing
activities:
|
|
|
|
Proceeds from
borrowings on debt
|
57,500
|
|
|
544,946
|
|
Principal repayments of
debt
|
(29,559)
|
|
|
(550,000)
|
|
Principal repayments of
notes payable
|
(574)
|
|
|
(821)
|
|
Principal repayments of
financing lease obligations
|
(1,614)
|
|
|
(2,100)
|
|
Debt issuance
costs
|
—
|
|
|
(5,839)
|
|
Common stock
repurchases and related expenses
|
(155)
|
|
|
(4,874)
|
|
Other, net
|
—
|
|
|
914
|
|
Net cash provided by
(used in) financing activities
|
25,598
|
|
|
(17,774)
|
|
Net increase in cash
and cash equivalents and restricted cash
|
4,408
|
|
|
23,228
|
|
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
|
$
|
352,088
|
|
|
$
|
500,474
|
|
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 June
30,
|
|
2020
|
|
2019
|
Cash and cash
equivalents
|
$
|
238,438
|
|
|
$
|
249,597
|
|
Short-term restricted
cash (included in prepaid expenses and other current
assets)
|
3,720
|
|
|
34,309
|
|
Long-term restricted
cash
|
109,930
|
|
|
216,568
|
|
Total cash and cash
equivalents and restricted cash shown in the Condensed Consolidated
Statements of Cash Flows
|
$
|
352,088
|
|
|
$
|
500,474
|
|
CONTURA ENERGY,
INC. AND SUBSIDIARIES
|
ADJUSTED EBITDA
RECONCILIATION
|
(Amounts in
thousands)
|
|
|
Three Months
Ended
|
|
Six Months Ended
June 30,
|
|
March 31,
2020
|
|
June 30,
2020
|
|
June 30,
2019
|
|
2020
|
|
2019
|
Net (loss) income
from continuing operations
|
$
|
(39,808)
|
|
|
$
|
(238,301)
|
|
|
$
|
24,300
|
|
|
$
|
(278,109)
|
|
|
$
|
32,290
|
|
Interest
expense
|
17,605
|
|
|
18,814
|
|
|
16,077
|
|
|
36,419
|
|
|
31,232
|
|
Interest
income
|
(978)
|
|
|
(5,533)
|
|
|
(1,885)
|
|
|
(6,511)
|
|
|
(3,821)
|
|
Income tax (benefit)
expense
|
(2,188)
|
|
|
33
|
|
|
(1,000)
|
|
|
(2,155)
|
|
|
(5,778)
|
|
Depreciation,
depletion and amortization
|
54,465
|
|
|
49,262
|
|
|
62,814
|
|
|
103,727
|
|
|
124,085
|
|
Merger-related
costs
|
—
|
|
|
—
|
|
|
156
|
|
|
—
|
|
|
987
|
|
Management
restructuring costs (1)
|
947
|
|
|
—
|
|
|
—
|
|
|
947
|
|
|
—
|
|
Non-cash stock
compensation expense
|
2,078
|
|
|
1,044
|
|
|
(546)
|
|
|
3,122
|
|
|
4,725
|
|
Mark-to-market
adjustment - acquisition-related obligations
|
(14,997)
|
|
|
(2,052)
|
|
|
1,014
|
|
|
(17,049)
|
|
|
2,950
|
|
Accretion on asset
retirement obligations
|
7,375
|
|
|
7,304
|
|
|
6,847
|
|
|
14,679
|
|
|
13,079
|
|
Loss on modification
and extinguishment of debt
|
—
|
|
|
—
|
|
|
26,459
|
|
|
—
|
|
|
26,459
|
|
Asset impairment and
restructuring (2)
|
33,709
|
|
|
184,173
|
|
|
5,826
|
|
|
217,882
|
|
|
5,826
|
|
Cost impact of coal
inventory fair value adjustment (3)
|
—
|
|
|
—
|
|
|
1,033
|
|
|
—
|
|
|
8,209
|
|
Gain on assets
acquired in an exchange transaction (4)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(9,083)
|
|
Loss on partial
settlement of benefit obligations
|
1,167
|
|
|
63
|
|
|
—
|
|
|
1,230
|
|
|
—
|
|
Amortization of
acquired intangibles, net
|
865
|
|
|
2,096
|
|
|
(343)
|
|
|
2,961
|
|
|
(7,026)
|
|
Adjusted
EBITDA
|
$
|
60,240
|
|
|
$
|
16,903
|
|
|
$
|
140,752
|
|
|
$
|
77,143
|
|
|
$
|
224,134
|
|
|
|
(1)
|
Management
restructuring costs are related to severance expense associated
with senior management changes.
|
(2)
|
Asset impairment and
restructuring for the six months ended June 30, 2020 includes
long-lived asset impairments of $195,447 and restructuring expense
of $22,435 as a result of continued weakening coal prices and the
strategic actions with respect to two thermal coal mining
complexes. Asset impairment for the six months ended June 30, 2019
primarily related to the write-off of prepaid purchased coal from
Blackjewel as a result of Blackjewel's Chapter 11 bankruptcy filing
on July 1, 2019.
|
(3)
|
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.
|
(4)
|
During the six months
ended June 30, 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
(exclusive of items shown separately below)
|
$
|
292,972
|
|
|
$
|
38,482
|
|
|
$
|
63,013
|
|
|
$
|
3,393
|
|
|
$
|
397,860
|
|
Depreciation,
depletion and amortization - production (1)
|
41,722
|
|
|
4,849
|
|
|
6,849
|
|
|
691
|
|
|
54,111
|
|
Accretion on asset
retirement obligations
|
3,502
|
|
|
2,352
|
|
|
770
|
|
|
751
|
|
|
7,375
|
|
Amortization of
acquired intangibles, net
|
2,581
|
|
|
(2,095)
|
|
|
354
|
|
|
25
|
|
|
865
|
|
Total Cost of coal
sales
|
$
|
340,777
|
|
|
$
|
43,588
|
|
|
$
|
70,986
|
|
|
$
|
4,860
|
|
|
$
|
460,211
|
|
Less: Freight and
handling costs
|
(53,664)
|
|
|
(3,743)
|
|
|
(2,346)
|
|
|
—
|
|
|
(59,753)
|
|
Less: Depreciation,
depletion and amortization - production (1)
|
(41,722)
|
|
|
(4,849)
|
|
|
(6,849)
|
|
|
(691)
|
|
|
(54,111)
|
|
Less: Accretion on
asset retirement obligations
|
(3,502)
|
|
|
(2,352)
|
|
|
(770)
|
|
|
(751)
|
|
|
(7,375)
|
|
Less: Amortization of
acquired intangibles, net
|
(2,581)
|
|
|
2,095
|
|
|
(354)
|
|
|
(25)
|
|
|
(865)
|
|
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
|
|
|
|
(1)
|
Depreciation,
depletion and amortization - production excludes the depreciation,
depletion and amortization related to selling, general and
administrative functions.
|
|
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: Total Cost of
coal sales (per table above)
|
(340,777)
|
|
|
(43,588)
|
|
|
(70,986)
|
|
|
(4,860)
|
|
|
(460,211)
|
|
GAAP Coal
margin
|
$
|
21,626
|
|
|
$
|
(4,845)
|
|
|
$
|
(4,079)
|
|
|
$
|
(4,546)
|
|
|
$
|
8,156
|
|
Tons sold
|
3,327
|
|
|
617
|
|
|
1,508
|
|
|
5
|
|
|
5,457
|
|
GAAP Coal margin per
ton
|
$
|
6.50
|
|
|
$
|
(7.85)
|
|
|
$
|
(2.70)
|
|
|
$
|
(909.20)
|
|
|
$
|
1.49
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Coal
margin
|
$
|
21,626
|
|
|
$
|
(4,845)
|
|
|
$
|
(4,079)
|
|
|
$
|
(4,546)
|
|
|
$
|
8,156
|
|
Add: Depreciation,
depletion and amortization - production (1)
|
41,722
|
|
|
4,849
|
|
|
6,849
|
|
|
691
|
|
|
54,111
|
|
Add: Accretion on
asset retirement obligations
|
3,502
|
|
|
2,352
|
|
|
770
|
|
|
751
|
|
|
7,375
|
|
Add: Amortization of
acquired intangibles, net
|
2,581
|
|
|
(2,095)
|
|
|
354
|
|
|
25
|
|
|
865
|
|
Add: Idled and closed
mine costs
|
4,157
|
|
|
1,995
|
|
|
825
|
|
|
3,079
|
|
|
10,056
|
|
Non-GAAP Coal
margin
|
$
|
73,588
|
|
|
$
|
2,256
|
|
|
$
|
4,719
|
|
|
$
|
—
|
|
|
$
|
80,563
|
|
Tons sold
|
3,327
|
|
|
617
|
|
|
1,508
|
|
|
5
|
|
|
5,457
|
|
Non-GAAP Coal margin
per ton
|
$
|
22.12
|
|
|
$
|
3.66
|
|
|
$
|
3.13
|
|
|
$
|
—
|
|
|
$
|
14.76
|
|
|
|
(1)
|
Depreciation,
depletion and amortization - production excludes the depreciation,
depletion and amortization related to selling, general and
administrative functions.
|
|
Three Months Ended
June 30, 2020
|
(In thousands,
except for per ton data)
|
CAPP -
Met
|
|
CAPP -
Thermal
|
|
NAPP
|
|
All
Other
|
|
Consolidated
|
Coal
revenues
|
$
|
316,319
|
|
|
$
|
36,720
|
|
|
$
|
57,499
|
|
|
$
|
76
|
|
|
$
|
410,614
|
|
Less: Freight and
handling fulfillment revenues
|
(54,852)
|
|
|
(4,634)
|
|
|
(5,492)
|
|
|
—
|
|
|
(64,978)
|
|
Non-GAAP Coal
revenues
|
$
|
261,467
|
|
|
$
|
32,086
|
|
|
$
|
52,007
|
|
|
$
|
76
|
|
|
$
|
345,636
|
|
Tons sold
|
3,204
|
|
|
648
|
|
|
1,294
|
|
|
1
|
|
|
5,147
|
|
Non-GAAP Coal sales
realization per ton
|
$
|
81.61
|
|
|
$
|
49.52
|
|
|
$
|
40.19
|
|
|
$
|
76.00
|
|
|
$
|
67.15
|
|
|
|
|
|
|
|
|
|
|
|
Cost of coal sales
(exclusive of items shown separately below)
|
$
|
297,169
|
|
|
$
|
35,709
|
|
|
$
|
48,732
|
|
|
$
|
1,669
|
|
|
$
|
383,279
|
|
Depreciation,
depletion and amortization - production (1)
|
38,800
|
|
|
7,260
|
|
|
2,172
|
|
|
694
|
|
|
48,926
|
|
Accretion on asset
retirement obligations
|
3,517
|
|
|
2,267
|
|
|
769
|
|
|
751
|
|
|
7,304
|
|
Amortization of
acquired intangibles, net
|
2,759
|
|
|
(903)
|
|
|
215
|
|
|
25
|
|
|
2,096
|
|
Total Cost of coal
sales
|
$
|
342,245
|
|
|
$
|
44,333
|
|
|
$
|
51,888
|
|
|
$
|
3,139
|
|
|
$
|
441,605
|
|
Less: Freight and
handling costs
|
(54,852)
|
|
|
(4,634)
|
|
|
(5,492)
|
|
|
—
|
|
|
(64,978)
|
|
Less: Depreciation,
depletion and amortization - production (1)
|
(38,800)
|
|
|
(7,260)
|
|
|
(2,172)
|
|
|
(694)
|
|
|
(48,926)
|
|
Less: Accretion on
asset retirement obligations
|
(3,517)
|
|
|
(2,267)
|
|
|
(769)
|
|
|
(751)
|
|
|
(7,304)
|
|
Less: Amortization of
acquired intangibles, net
|
(2,759)
|
|
|
903
|
|
|
(215)
|
|
|
(25)
|
|
|
(2,096)
|
|
Less: Idled and
closed mine costs
|
(3,906)
|
|
|
(1,670)
|
|
|
(566)
|
|
|
(1,669)
|
|
|
(7,811)
|
|
Non-GAAP Cost of coal
sales
|
$
|
238,411
|
|
|
$
|
29,405
|
|
|
$
|
42,674
|
|
|
$
|
—
|
|
|
$
|
310,490
|
|
Tons sold
|
3,204
|
|
|
648
|
|
|
1,294
|
|
|
1
|
|
|
5,147
|
|
Non-GAAP Cost of coal
sales per ton
|
$
|
74.41
|
|
|
$
|
45.38
|
|
|
$
|
32.98
|
|
|
$
|
—
|
|
|
$
|
60.32
|
|
|
|
(1)
|
Depreciation,
depletion and amortization - production excludes the depreciation,
depletion and amortization related to selling, general and
administrative functions.
|
|
Three Months Ended
June 30, 2020
|
(In thousands,
except for per ton data)
|
CAPP -
Met
|
|
CAPP -
Thermal
|
|
NAPP
|
|
All
Other
|
|
Consolidated
|
Coal
revenues
|
$
|
316,319
|
|
|
$
|
36,720
|
|
|
$
|
57,499
|
|
|
$
|
76
|
|
|
$
|
410,614
|
|
Less: Total Cost of
coal sales (per table above)
|
(342,245)
|
|
|
(44,333)
|
|
|
(51,888)
|
|
|
(3,139)
|
|
|
(441,605)
|
|
GAAP Coal
margin
|
$
|
(25,926)
|
|
|
$
|
(7,613)
|
|
|
$
|
5,611
|
|
|
$
|
(3,063)
|
|
|
$
|
(30,991)
|
|
Tons sold
|
3,204
|
|
|
648
|
|
|
1,294
|
|
|
1
|
|
|
5,147
|
|
GAAP Coal margin per
ton
|
$
|
(8.09)
|
|
|
$
|
(11.75)
|
|
|
$
|
4.34
|
|
|
$
|
(3,063.00)
|
|
|
$
|
(6.02)
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Coal
margin
|
$
|
(25,926)
|
|
|
$
|
(7,613)
|
|
|
$
|
5,611
|
|
|
$
|
(3,063)
|
|
|
$
|
(30,991)
|
|
Add: Depreciation,
depletion and amortization - production (1)
|
38,800
|
|
|
7,260
|
|
|
2,172
|
|
|
694
|
|
|
48,926
|
|
Add: Accretion on
asset retirement obligations
|
3,517
|
|
|
2,267
|
|
|
769
|
|
|
751
|
|
|
7,304
|
|
Add: Amortization of
acquired intangibles, net
|
2,759
|
|
|
(903)
|
|
|
215
|
|
|
25
|
|
|
2,096
|
|
Add: Idled and closed
mine costs
|
3,906
|
|
|
1,670
|
|
|
566
|
|
|
1,669
|
|
|
7,811
|
|
Non-GAAP Coal
margin
|
$
|
23,056
|
|
|
$
|
2,681
|
|
|
$
|
9,333
|
|
|
$
|
76
|
|
|
$
|
35,146
|
|
Tons sold
|
3,204
|
|
|
648
|
|
|
1,294
|
|
|
1
|
|
|
5,147
|
|
Non-GAAP Coal margin
per ton
|
$
|
7.20
|
|
|
$
|
4.14
|
|
|
$
|
7.21
|
|
|
$
|
76.00
|
|
|
$
|
6.83
|
|
|
|
(1)
|
Depreciation,
depletion and amortization - production excludes the depreciation,
depletion and amortization related to selling, general and
administrative functions.
|
|
Three Months Ended
June 30, 2019
|
(In thousands,
except for per ton data)
|
CAPP -
Met
|
|
CAPP -
Thermal
|
|
NAPP
|
|
All
Other
|
|
Consolidated
|
Coal
revenues
|
$
|
494,093
|
|
|
$
|
81,701
|
|
|
$
|
78,034
|
|
|
$
|
—
|
|
|
$
|
653,828
|
|
Less: Freight and
handling fulfillment revenues
|
(67,728)
|
|
|
(8,190)
|
|
|
(1,794)
|
|
|
—
|
|
|
(77,712)
|
|
Non-GAAP Coal
revenues
|
$
|
426,365
|
|
|
$
|
73,511
|
|
|
$
|
76,240
|
|
|
$
|
—
|
|
|
$
|
576,116
|
|
Tons sold
|
3,429
|
|
|
1,189
|
|
|
1,747
|
|
|
—
|
|
|
6,365
|
|
Non-GAAP Coal sales
realization per ton
|
$
|
124.34
|
|
|
$
|
61.83
|
|
|
$
|
43.64
|
|
|
$
|
—
|
|
|
$
|
90.51
|
|
|
|
|
|
|
|
|
|
|
|
Cost of coal sales
(exclusive of items shown separately below)
|
$
|
369,703
|
|
|
$
|
69,932
|
|
|
$
|
56,433
|
|
|
$
|
678
|
|
|
$
|
496,746
|
|
Depreciation,
depletion and amortization - production (1)
|
38,829
|
|
|
16,502
|
|
|
6,522
|
|
|
609
|
|
|
62,462
|
|
Accretion on asset
retirement obligations
|
2,327
|
|
|
2,666
|
|
|
1,016
|
|
|
838
|
|
|
6,847
|
|
Amortization of
acquired intangibles, net
|
3,870
|
|
|
(4,213)
|
|
|
—
|
|
|
—
|
|
|
(343)
|
|
Total Cost of coal
sales
|
$
|
414,729
|
|
|
$
|
84,887
|
|
|
$
|
63,971
|
|
|
$
|
2,125
|
|
|
$
|
565,712
|
|
Less: Freight and
handling costs
|
(67,728)
|
|
|
(8,190)
|
|
|
(1,794)
|
|
|
—
|
|
|
(77,712)
|
|
Less:
Depreciation, depletion and amortization - production
(1)
|
(38,829)
|
|
|
(16,502)
|
|
|
(6,522)
|
|
|
(609)
|
|
|
(62,462)
|
|
Less: Accretion on
asset retirement obligations
|
(2,327)
|
|
|
(2,666)
|
|
|
(1,016)
|
|
|
(838)
|
|
|
(6,847)
|
|
Less: Amortization of
acquired intangibles, net
|
(3,870)
|
|
|
4,213
|
|
|
—
|
|
|
—
|
|
|
343
|
|
Less: Idled and
closed mine costs
|
(2,165)
|
|
|
(567)
|
|
|
(733)
|
|
|
(886)
|
|
|
(4,351)
|
|
Less: Cost impact of
coal inventory fair value adjustment (2)
|
(1,033)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,033)
|
|
Non-GAAP Cost of coal
sales
|
$
|
298,777
|
|
|
$
|
61,175
|
|
|
$
|
53,906
|
|
|
$
|
(208)
|
|
|
$
|
413,650
|
|
Tons sold
|
3,429
|
|
|
1,189
|
|
|
1,747
|
|
|
—
|
|
|
6,365
|
|
Non-GAAP Cost of coal
sales per ton
|
$
|
87.13
|
|
|
$
|
51.45
|
|
|
$
|
30.86
|
|
|
$
|
—
|
|
|
$
|
64.99
|
|
|
|
(1)
|
Depreciation,
depletion and amortization - production excludes the depreciation,
depletion and amortization related to selling, general and
administrative functions.
|
(2)
|
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.
|
|
Three Months Ended
June 30, 2019
|
(In thousands,
except for per ton data)
|
CAPP -
Met
|
|
CAPP -
Thermal
|
|
NAPP
|
|
All
Other
|
|
Consolidated
|
Coal
revenues
|
$
|
494,093
|
|
|
$
|
81,701
|
|
|
$
|
78,034
|
|
|
$
|
—
|
|
|
$
|
653,828
|
|
Less: Total Cost of
coal sales (per table above)
|
(414,729)
|
|
|
(84,887)
|
|
|
(63,971)
|
|
|
(2,125)
|
|
|
(565,712)
|
|
GAAP Coal
margin
|
$
|
79,364
|
|
|
$
|
(3,186)
|
|
|
$
|
14,063
|
|
|
$
|
(2,125)
|
|
|
$
|
88,116
|
|
Tons sold
|
3,429
|
|
|
1,189
|
|
|
1,747
|
|
|
—
|
|
|
6,365
|
|
GAAP Coal margin per
ton
|
$
|
23.14
|
|
|
$
|
(2.68)
|
|
|
$
|
8.05
|
|
|
$
|
—
|
|
|
$
|
13.84
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Coal
margin
|
$
|
79,364
|
|
|
$
|
(3,186)
|
|
|
$
|
14,063
|
|
|
$
|
(2,125)
|
|
|
$
|
88,116
|
|
Add: Depreciation,
depletion and amortization - production (1)
|
38,829
|
|
|
16,502
|
|
|
6,522
|
|
|
609
|
|
|
62,462
|
|
Add: Accretion on
asset retirement obligations
|
2,327
|
|
|
2,666
|
|
|
1,016
|
|
|
838
|
|
|
6,847
|
|
Add: Amortization of
acquired intangibles, net
|
3,870
|
|
|
(4,213)
|
|
|
—
|
|
|
—
|
|
|
(343)
|
|
Add: Idled and closed
mine costs
|
2,165
|
|
|
567
|
|
|
733
|
|
|
886
|
|
|
4,351
|
|
Add: Cost impact of
coal inventory fair value adjustment (2)
|
1,033
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,033
|
|
Non-GAAP Coal
margin
|
$
|
127,588
|
|
|
$
|
12,336
|
|
|
$
|
22,334
|
|
|
$
|
208
|
|
|
$
|
162,466
|
|
Tons sold
|
3,429
|
|
|
1,189
|
|
|
1,747
|
|
|
—
|
|
|
6,365
|
|
Non-GAAP Coal margin
per ton
|
$
|
37.21
|
|
|
$
|
10.38
|
|
|
$
|
12.78
|
|
|
$
|
—
|
|
|
$
|
25.52
|
|
|
|
(1)
|
Depreciation,
depletion and amortization - production excludes the depreciation,
depletion and amortization related to selling, general and
administrative functions.
|
(2)
|
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.
|
|
Six Months Ended
June 30, 2020
|
(In thousands,
except for per ton data)
|
CAPP -
Met
|
|
CAPP -
Thermal
|
|
NAPP
|
|
All
Other
|
|
Consolidated
|
Coal
revenues
|
$
|
678,722
|
|
|
$
|
75,463
|
|
|
$
|
124,406
|
|
|
$
|
390
|
|
|
$
|
878,981
|
|
Less: Freight and
handling fulfillment revenues
|
(108,516)
|
|
|
(8,377)
|
|
|
(7,838)
|
|
|
—
|
|
|
(124,731)
|
|
Non-GAAP Coal
revenues
|
$
|
570,206
|
|
|
$
|
67,086
|
|
|
$
|
116,568
|
|
|
$
|
390
|
|
|
$
|
754,250
|
|
Tons sold
|
6,531
|
|
|
1,265
|
|
|
2,802
|
|
|
6
|
|
|
10,604
|
|
Non-GAAP Coal sales
realization per ton
|
$
|
87.31
|
|
|
$
|
53.03
|
|
|
$
|
41.60
|
|
|
$
|
65.00
|
|
|
$
|
71.13
|
|
|
|
|
|
|
|
|
|
|
|
Cost of coal sales
(exclusive of items shown separately below)
|
$
|
590,141
|
|
|
$
|
74,191
|
|
|
$
|
111,745
|
|
|
$
|
5,062
|
|
|
$
|
781,139
|
|
Depreciation,
depletion and amortization - production (1)
|
80,522
|
|
|
12,109
|
|
|
9,021
|
|
|
1,385
|
|
|
103,037
|
|
Accretion on asset
retirement obligations
|
7,019
|
|
|
4,619
|
|
|
1,539
|
|
|
1,502
|
|
|
14,679
|
|
Amortization of
acquired intangibles, net
|
5,340
|
|
|
(2,998)
|
|
|
569
|
|
|
50
|
|
|
2,961
|
|
Total Cost of coal
sales
|
$
|
683,022
|
|
|
$
|
87,921
|
|
|
$
|
122,874
|
|
|
$
|
7,999
|
|
|
$
|
901,816
|
|
Less: Freight and
handling costs
|
(108,516)
|
|
|
(8,377)
|
|
|
(7,838)
|
|
|
—
|
|
|
(124,731)
|
|
Less:
Depreciation, depletion and amortization - production
(1)
|
(80,522)
|
|
|
(12,109)
|
|
|
(9,021)
|
|
|
(1,385)
|
|
|
(103,037)
|
|
Less: Accretion on
asset retirement obligations
|
(7,019)
|
|
|
(4,619)
|
|
|
(1,539)
|
|
|
(1,502)
|
|
|
(14,679)
|
|
Less: Amortization of
acquired intangibles, net
|
(5,340)
|
|
|
2,998
|
|
|
(569)
|
|
|
(50)
|
|
|
(2,961)
|
|
Less: Idled and
closed mine costs
|
(8,063)
|
|
|
(3,665)
|
|
|
(1,391)
|
|
|
(4,748)
|
|
|
(17,867)
|
|
Non-GAAP Cost of coal
sales
|
$
|
473,562
|
|
|
$
|
62,149
|
|
|
$
|
102,516
|
|
|
$
|
314
|
|
|
$
|
638,541
|
|
Tons sold
|
6,531
|
|
|
1,265
|
|
|
2,802
|
|
|
6
|
|
|
10,604
|
|
Non-GAAP Cost of coal
sales per ton
|
$
|
72.51
|
|
|
$
|
49.13
|
|
|
$
|
36.59
|
|
|
$
|
52.33
|
|
|
$
|
60.22
|
|
|
|
(1)
|
Depreciation,
depletion and amortization - production excludes the depreciation,
depletion and amortization related to selling, general and
administrative functions.
|
|
Six Months Ended
June 30, 2020
|
(In thousands,
except for per ton data)
|
CAPP -
Met
|
|
CAPP -
Thermal
|
|
NAPP
|
|
All
Other
|
|
Consolidated
|
Coal
revenues
|
$
|
678,722
|
|
|
$
|
75,463
|
|
|
$
|
124,406
|
|
|
$
|
390
|
|
|
$
|
878,981
|
|
Less: Total Cost of
coal sales (per table above)
|
(683,022)
|
|
|
(87,921)
|
|
|
(122,874)
|
|
|
(7,999)
|
|
|
(901,816)
|
|
GAAP Coal
margin
|
$
|
(4,300)
|
|
|
$
|
(12,458)
|
|
|
$
|
1,532
|
|
|
$
|
(7,609)
|
|
|
$
|
(22,835)
|
|
Tons sold
|
6,531
|
|
|
1,265
|
|
|
2,802
|
|
|
6
|
|
|
10,604
|
|
GAAP Coal margin per
ton
|
$
|
(0.66)
|
|
|
$
|
(9.85)
|
|
|
$
|
0.55
|
|
|
$
|
(1,268.17)
|
|
|
$
|
(2.15)
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Coal
margin
|
$
|
(4,300)
|
|
|
$
|
(12,458)
|
|
|
$
|
1,532
|
|
|
$
|
(7,609)
|
|
|
$
|
(22,835)
|
|
Add: Depreciation,
depletion and amortization - production (1)
|
80,522
|
|
|
12,109
|
|
|
9,021
|
|
|
1,385
|
|
|
103,037
|
|
Add: Accretion on
asset retirement obligations
|
7,019
|
|
|
4,619
|
|
|
1,539
|
|
|
1,502
|
|
|
14,679
|
|
Add: Amortization of
acquired intangibles, net
|
5,340
|
|
|
(2,998)
|
|
|
569
|
|
|
50
|
|
|
2,961
|
|
Add: Idled and closed
mine costs
|
8,063
|
|
|
3,665
|
|
|
1,391
|
|
|
4,748
|
|
|
17,867
|
|
Non-GAAP Coal
margin
|
$
|
96,644
|
|
|
$
|
4,937
|
|
|
$
|
14,052
|
|
|
$
|
76
|
|
|
$
|
115,709
|
|
Tons sold
|
6,531
|
|
|
1,265
|
|
|
2,802
|
|
|
6
|
|
|
10,604
|
|
Non-GAAP Coal margin
per ton
|
$
|
14.80
|
|
|
$
|
3.90
|
|
|
$
|
5.01
|
|
|
$
|
12.67
|
|
|
$
|
10.91
|
|
|
|
(1)
|
Depreciation,
depletion and amortization - production excludes the depreciation,
depletion and amortization related to selling, general and
administrative functions.
|
|
Six Months Ended
June 30, 2019
|
(In thousands,
except for per ton data)
|
CAPP -
Met
|
|
CAPP -
Thermal
|
|
NAPP
|
|
All
Other
|
|
Consolidated
|
Coal
revenues
|
$
|
966,584
|
|
|
$
|
144,640
|
|
|
$
|
149,564
|
|
|
$
|
—
|
|
|
$
|
1,260,788
|
|
Less: Freight and
handling fulfillment revenues
|
(132,629)
|
|
|
(13,814)
|
|
|
(2,469)
|
|
|
—
|
|
|
(148,912)
|
|
Non-GAAP Coal
revenues
|
$
|
833,955
|
|
|
$
|
130,826
|
|
|
$
|
147,095
|
|
|
$
|
—
|
|
|
$
|
1,111,876
|
|
Tons sold
|
6,672
|
|
|
2,181
|
|
|
3,399
|
|
|
—
|
|
|
12,252
|
|
Non-GAAP Coal sales
realization per ton
|
$
|
124.99
|
|
|
$
|
59.98
|
|
|
$
|
43.28
|
|
|
$
|
—
|
|
|
$
|
90.75
|
|
|
|
|
|
|
|
|
|
|
|
Cost of coal sales
(exclusive of items shown separately below)
|
$
|
745,622
|
|
|
$
|
140,645
|
|
|
$
|
123,995
|
|
|
$
|
2,178
|
|
|
$
|
1,012,440
|
|
Depreciation,
depletion and amortization - production (1)
|
75,502
|
|
|
30,614
|
|
|
13,149
|
|
|
4,120
|
|
|
123,385
|
|
Accretion on asset
retirement obligations
|
4,660
|
|
|
4,731
|
|
|
2,033
|
|
|
1,655
|
|
|
13,079
|
|
Amortization of
acquired intangibles, net
|
1,050
|
|
|
(8,782)
|
|
|
706
|
|
|
—
|
|
|
(7,026)
|
|
Total Cost of coal
sales
|
$
|
826,834
|
|
|
$
|
167,208
|
|
|
$
|
139,883
|
|
|
$
|
7,953
|
|
|
$
|
1,141,878
|
|
Less: Freight and
handling costs
|
(132,629)
|
|
|
(13,814)
|
|
|
(2,469)
|
|
|
—
|
|
|
(148,912)
|
|
Less:
Depreciation, depletion and amortization - production
(1)
|
(75,502)
|
|
|
(30,614)
|
|
|
(13,149)
|
|
|
(4,120)
|
|
|
(123,385)
|
|
Less: Accretion on
asset retirement obligations
|
(4,660)
|
|
|
(4,731)
|
|
|
(2,033)
|
|
|
(1,655)
|
|
|
(13,079)
|
|
Less: Amortization of
acquired intangibles, net
|
(1,050)
|
|
|
8,782
|
|
|
(706)
|
|
|
—
|
|
|
7,026
|
|
Less: Idled and
closed mine costs
|
(3,986)
|
|
|
(984)
|
|
|
(1,562)
|
|
|
(2,181)
|
|
|
(8,713)
|
|
Less: Cost impact of
coal inventory fair value adjustment (2)
|
(4,751)
|
|
|
(3,458)
|
|
|
—
|
|
|
—
|
|
|
(8,209)
|
|
Non-GAAP Cost of coal
sales
|
$
|
604,256
|
|
|
$
|
122,389
|
|
|
$
|
119,964
|
|
|
$
|
(3)
|
|
|
$
|
846,606
|
|
Tons sold
|
6,672
|
|
|
2,181
|
|
|
3,399
|
|
|
—
|
|
|
12,252
|
|
Non-GAAP Cost of coal
sales per ton
|
$
|
90.57
|
|
|
$
|
56.12
|
|
|
$
|
35.29
|
|
|
$
|
—
|
|
|
$
|
69.10
|
|
|
|
(1)
|
Depreciation,
depletion and amortization - production excludes the depreciation,
depletion and amortization related to selling, general and
administrative functions.
|
(2)
|
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.
|
|
Six Months Ended
June 30, 2019
|
(In thousands,
except for per ton data)
|
CAPP -
Met
|
|
CAPP -
Thermal
|
|
NAPP
|
|
All
Other
|
|
Consolidated
|
Coal
revenues
|
$
|
966,584
|
|
|
$
|
144,640
|
|
|
$
|
149,564
|
|
|
$
|
—
|
|
|
$
|
1,260,788
|
|
Less: Total Cost of
coal sales (per table above)
|
(826,834)
|
|
|
(167,208)
|
|
|
(139,883)
|
|
|
(7,953)
|
|
|
(1,141,878)
|
|
GAAP Coal
margin
|
$
|
139,750
|
|
|
$
|
(22,568)
|
|
|
$
|
9,681
|
|
|
$
|
(7,953)
|
|
|
$
|
118,910
|
|
Tons sold
|
6,672
|
|
|
2,181
|
|
|
3,399
|
|
|
—
|
|
|
12,252
|
|
GAAP Coal margin per
ton
|
$
|
20.95
|
|
|
$
|
(10.35)
|
|
|
$
|
2.85
|
|
|
$
|
—
|
|
|
$
|
9.71
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Coal
margin
|
$
|
139,750
|
|
|
$
|
(22,568)
|
|
|
$
|
9,681
|
|
|
$
|
(7,953)
|
|
|
$
|
118,910
|
|
Add: Depreciation,
depletion and amortization - production (1)
|
75,502
|
|
|
30,614
|
|
|
13,149
|
|
|
4,120
|
|
|
123,385
|
|
Add: Accretion on
asset retirement obligations
|
4,660
|
|
|
4,731
|
|
|
2,033
|
|
|
1,655
|
|
|
13,079
|
|
Add: Amortization of
acquired intangibles, net
|
1,050
|
|
|
(8,782)
|
|
|
706
|
|
|
—
|
|
|
(7,026)
|
|
Add: Idled and closed
mine costs
|
3,986
|
|
|
984
|
|
|
1,562
|
|
|
2,181
|
|
|
8,713
|
|
Add: Cost impact of
coal inventory fair value adjustment (2)
|
4,751
|
|
|
3,458
|
|
|
—
|
|
|
—
|
|
|
8,209
|
|
Non-GAAP Coal
margin
|
$
|
229,699
|
|
|
$
|
8,437
|
|
|
$
|
27,131
|
|
|
$
|
3
|
|
|
$
|
265,270
|
|
Tons sold
|
6,672
|
|
|
2,181
|
|
|
3,399
|
|
|
—
|
|
|
12,252
|
|
Non-GAAP Coal margin
per ton
|
$
|
34.43
|
|
|
$
|
3.87
|
|
|
$
|
7.98
|
|
|
$
|
—
|
|
|
$
|
21.65
|
|
|
|
(1)
|
Depreciation,
depletion and amortization - production excludes the depreciation,
depletion and amortization related to selling, general and
administrative functions.
|
(2)
|
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.
|
|
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
June 30, 2020
|
(In thousands,
except for per ton data)
|
CAPP -
Met
|
|
CAPP -
Thermal
|
|
NAPP
|
|
All
Other
|
|
Consolidated
|
Non-GAAP Cost of coal
sales
|
$
|
238,411
|
|
|
$
|
29,405
|
|
|
$
|
42,674
|
|
|
$
|
—
|
|
|
$
|
310,490
|
|
Less: cost of
purchased coal sold
|
(22,932)
|
|
|
(9)
|
|
|
—
|
|
|
—
|
|
|
(22,941)
|
|
Adjusted cost of
produced coal sold
|
$
|
215,479
|
|
|
$
|
29,396
|
|
|
$
|
42,674
|
|
|
$
|
—
|
|
|
$
|
287,549
|
|
Produced tons
sold
|
2,896
|
|
|
647
|
|
|
1,294
|
|
|
1
|
|
|
4,838
|
|
Adjusted cost of
produced coal sold per ton (1)
|
$
|
74.41
|
|
|
$
|
45.43
|
|
|
$
|
32.98
|
|
|
$
|
—
|
|
|
$
|
59.44
|
|
|
|
(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
June 30, 2019
|
(In thousands,
except for per ton data)
|
CAPP -
Met
|
|
CAPP -
Thermal
|
|
NAPP
|
|
All
Other
|
|
Consolidated
|
Non-GAAP Cost of coal
sales
|
$
|
298,777
|
|
|
$
|
61,175
|
|
|
$
|
53,906
|
|
|
$
|
(208)
|
|
|
$
|
413,650
|
|
Less: cost of
purchased coal sold
|
(67,320)
|
|
|
(2,443)
|
|
|
—
|
|
|
—
|
|
|
(69,763)
|
|
Adjusted cost of
produced coal sold
|
$
|
231,457
|
|
|
$
|
58,732
|
|
|
$
|
53,906
|
|
|
$
|
(208)
|
|
|
$
|
343,887
|
|
Produced tons
sold
|
2,819
|
|
|
1,144
|
|
|
1,747
|
|
|
—
|
|
|
5,710
|
|
Adjusted cost of
produced coal sold per ton (1)
|
$
|
82.11
|
|
|
$
|
51.34
|
|
|
$
|
30.86
|
|
|
$
|
—
|
|
|
$
|
60.23
|
|
|
|
(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.
|
|
Six Months Ended
June 30, 2020
|
(In thousands,
except for per ton data)
|
CAPP -
Met
|
|
CAPP -
Thermal
|
|
NAPP
|
|
All
Other
|
|
Consolidated
|
Non-GAAP Cost of coal
sales
|
$
|
473,562
|
|
|
$
|
62,149
|
|
|
$
|
102,516
|
|
|
$
|
314
|
|
|
$
|
638,541
|
|
Less: cost of
purchased coal sold
|
(53,266)
|
|
|
(902)
|
|
|
—
|
|
|
—
|
|
|
(54,168)
|
|
Adjusted cost of
produced coal sold
|
$
|
420,296
|
|
|
$
|
61,247
|
|
|
$
|
102,516
|
|
|
$
|
314
|
|
|
$
|
584,373
|
|
Produced tons
sold
|
5,860
|
|
|
1,251
|
|
|
2,802
|
|
|
6
|
|
|
9,919
|
|
Adjusted cost of
produced coal sold per ton (1)
|
$
|
71.72
|
|
|
$
|
48.96
|
|
|
$
|
36.59
|
|
|
$
|
52.33
|
|
|
$
|
58.91
|
|
|
|
(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.
|
|
Six Months Ended
June 30, 2019
|
(In thousands,
except for per ton data)
|
CAPP -
Met
|
|
CAPP -
Thermal
|
|
NAPP
|
|
All
Other
|
|
Consolidated
|
Non-GAAP Cost of coal
sales
|
$
|
604,256
|
|
|
$
|
122,389
|
|
|
$
|
119,964
|
|
|
$
|
(3)
|
|
|
$
|
846,606
|
|
Less: cost of
purchased coal sold
|
(146,859)
|
|
|
(5,327)
|
|
|
—
|
|
|
—
|
|
|
(152,186)
|
|
Adjusted cost of
produced coal sold
|
$
|
457,397
|
|
|
$
|
117,062
|
|
|
$
|
119,964
|
|
|
$
|
(3)
|
|
|
$
|
694,420
|
|
Produced tons
sold
|
5,390
|
|
|
2,088
|
|
|
3,399
|
|
|
—
|
|
|
10,877
|
|
Adjusted cost of
produced coal sold per ton (1)
|
$
|
84.86
|
|
|
$
|
56.06
|
|
|
$
|
35.29
|
|
|
$
|
—
|
|
|
$
|
63.84
|
|
|
|
(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.
|
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SOURCE Contura Energy, Inc.