- Posts third quarter net income of $3.8 million, or $0.29 per diluted share
- Reports Adjusted EBITDA of $49.0
million for the quarter
- Increases quarter-over-quarter total liquidity by 42% or
$150.3 million
- Announces sales commitments to domestic customers for
shipment in 2025
- Introduces guidance for full year 2025
BRISTOL,
Tenn., Nov. 1, 2024 /PRNewswire/ -- Alpha
Metallurgical Resources, Inc. (NYSE: AMR), a leading U.S. supplier
of metallurgical products for the steel industry, today reported
financial results for the third quarter ending September 30, 2024.
|
(millions, except per
share)
|
|
Three months
ended
|
|
Sep. 30,
2024
|
June 30,
2024
|
Sep. 30,
2023
|
|
Net
income
|
$3.8
|
$58.9
|
$93.8
|
|
Net income per
diluted share
|
$0.29
|
$4.49
|
$6.65
|
|
Adjusted
EBITDA(1)
|
$49.0
|
$116.0
|
$153.9
|
|
Operating cash
flow
|
$189.5
|
$138.1
|
$157.2
|
|
Capital
expenditures
|
($31.5)
|
($61.1)
|
($54.7)
|
|
Tons of coal
sold
|
4.1
|
4.6
|
4.2
|
|
__________________________________
|
|
1.
|
These are non-GAAP
financial measures. A reconciliation of Net Income to Adjusted
EBITDA is included in tables accompanying the financial
schedules.
|
"Our third quarter results reflect the softness of metallurgical
coal markets, which is driven by weak global steel demand," said
Andy Eidson, Alpha's chief executive
officer. "A slowdown in manufacturing activity, increased economic
headwinds, and geopolitical uncertainties across the world have
exerted downward pressure on steel demand, which impacts met coal
demand and pricing. Despite these external factors, we continue to
focus internally on safely running our operations and working to
protect our business with a strong balance sheet. This means we
have been taking a close look at our costs across the board and
making some changes to help the organization withstand this period
of lower revenue generation."
Eidson continued: "Looking ahead to 2025, we are issuing
guidance for next year and announcing our domestic sales
commitments, which include 3.7 million tons contracted at an
average price of $152.51 per ton. We
are pleased with our committed tonnage for 2025, especially in
light of the challenging market dynamics that served as a backdrop
to this negotiation season, and we will seek opportunities to
capture potential upside in the export market if the metallurgical
markets rebound and begin to move higher."
Financial Performance
Alpha reported net income of $3.8
million, or $0.29 per diluted
share, for the third quarter 2024, as compared to net income of
$58.9 million, or $4.49 per diluted share, in the second
quarter.
Total Adjusted EBITDA was $49.0
million for the third quarter, compared to $116.0 million in the second quarter.
Coal Revenues
|
(millions)
|
|
Three months
ended
|
|
Sep. 30,
2024
|
June 30,
2024
|
|
Met
Segment
|
$669.8
|
$800.1
|
|
Met Segment (excl. freight &
handling)(1)
|
$550.7
|
$645.7
|
|
|
|
Tons Sold
|
(millions)
|
|
Three months
ended
|
|
Sep. 30,
2024
|
June 30,
2024
|
|
Met
Segment
|
4.1
|
4.6
|
|
__________________________________
|
|
1.
|
Represents Non-GAAP
coal revenues which is defined and reconciled under "Non-GAAP
Financial Measures" and "Results of Operations."
|
Coal Sales Realization(1)
|
(per ton)
|
|
Three months
ended
|
|
Sep. 30,
2024
|
June 30,
2024
|
|
Met
Segment
|
$132.76
|
$141.86
|
|
__________________________________
|
|
1.
|
Represents Non-GAAP
coal sales realization which is defined and reconciled under
"Non-GAAP Financial Measures" and "Results of
Operations."
|
Third quarter net realized pricing for the Met segment was
$132.76 per ton.
The table below provides a breakdown of our Met segment coal
sold in the third quarter by pricing mechanism.
|
(in millions, except
per ton data)
|
|
Met Segment
Sales
|
Three months ended
Sep. 30, 2024
|
|
Tons
Sold
|
Coal
Revenues
|
Realization/ton(1)
|
% of Met Tons
Sold
|
|
Export - Other
Pricing Mechanisms
|
1.9
|
$241.0
|
$129.31
|
48 %
|
|
Domestic
|
0.9
|
$145.9
|
$160.35
|
23 %
|
|
Export - Australian
Indexed
|
1.1
|
$144.8
|
$128.61
|
29 %
|
|
Total Met Coal
Revenues
|
3.9
|
$531.8
|
$136.35
|
100 %
|
|
Thermal Coal
Revenues
|
0.2
|
$18.9
|
$76.33
|
|
|
Total Met Segment
Coal Revenues (excl. freight & handling)(1)
|
4.1
|
$550.7
|
$132.76
|
|
|
__________________________________
|
|
1.
|
Represents Non-GAAP
coal sales realization which is defined and reconciled under
"Non-GAAP Financial Measures" and "Results of
Operations."
|
Cost of Coal Sales
|
(in millions, except
per ton data)
|
|
Three months
ended
|
|
Sep. 30,
2024
|
June 30,
2024
|
|
Met
Segment
|
$598.7
|
$663.8
|
|
Met Segment (excl.
freight & handling/idle)(1)
|
$474.0
|
$497.6
|
|
|
|
(per ton)
|
|
Met Segment(1)
|
$114.27
|
$109.31
|
|
__________________________________
|
|
1.
|
Represents Non-GAAP
cost of coal sales and Non-GAAP cost of coal sales per ton which is
defined and reconciled under "Non-GAAP Financial Measures" and
"Results of Operations."
|
Alpha's Met segment cost of coal sales increased to an average
of $114.27 per ton in the third
quarter, compared to $109.31 per ton
in the second quarter. The increase in costs for the third quarter
is primarily related to reduced productivity
quarter-over-quarter.
Liquidity and Capital Resources
Cash provided by operating activities in the third quarter
increased to $189.5 million as
compared to $138.1 million in the
second quarter. The third quarter cash flows were positively
impacted by a decrease in working capital of $144.5 million. The primary drivers of the
working capital release were a reduction to accounts receivable and
inventory. Capital expenditures for the third quarter were
$31.5 million compared to
$61.1 million for the second
quarter.
As of September 30, 2024, the company had total liquidity
of $507.0 million, including cash and
cash equivalents of $484.6 million
and $97.5 million of unused
availability under the ABL, partially offset by a minimum required
liquidity of $75.0 million as
required by the ABL. Total liquidity increased by $150.3 million relative to the second quarter. As
of September 30, 2024, the company had no borrowings and
$57.5 million in letters of credit
outstanding under the ABL. Total long-term debt, including the
current portion of long-term debt as of September 30, 2024,
was $6.7 million.
Share Repurchase Program
As previously announced, Alpha's board of directors authorized a
share repurchase program allowing for the expenditure of up to
$1.5 billion for the repurchase of
the company's common stock. As of October 31, 2024, the company has acquired
approximately 6.6 million shares of common stock at a cost of
approximately $1.1 billion, or
approximately $165.74 per share. The
number of common stock shares outstanding as of October 31, 2024 was 13,016,010. The outstanding
share count does not include the potentially dilutive effect of
unvested equity awards.
The timing and amount of share repurchases will continue to be
determined by the company's management based on its evaluation of
market conditions, the trading price of the stock, applicable legal
requirements, compliance with the provisions of the company's debt
agreements, and other factors.
2025 Domestics Sales Commitments
Alpha has committed approximately 3.7 million tons of
metallurgical coal to domestic customers for shipment in the 2025
calendar year at an average price of $152.51 per ton.
Issuance of 2025 Operational Guidance
The company is issuing operational guidance for the 2025
calendar year. For sales volumes, Alpha expects to ship between
15.0 million and 16.0 million metallurgical tons in 2025 as well as
another 1.0 million to 1.4 million tons of incidental thermal coal,
bringing total 2025 shipment expectations to a range of 16.0
million to 17.4 million tons for the year.
Alpha expects its 2025 cost of coal sales to be between
$103.00 and $108.00 per ton.
The guidance range for selling, general and administrative
(SG&A) costs is $53 million to
$59 million in 2025, excluding
non-recurring expenses and non-cash stock compensation. Idle
operations expense is expected to be between $18 million and $28
million. The company anticipates 2025 net cash interest
income of $2 million to $10 million, and depreciation, depletion and
amortization of $165 million to
$185 million.
The company expects capital expenditures in the range of
$152 million to $182 million, which includes sustaining
maintenance capital as well as development capital to continue
progress on its Kingston Wildcat (formerly named Kingston Sewell)
mine.
2025 contributions to equity affiliates are expected in the
range of $44 million to $54 million, which include planned capital
investments in Dominion Terminal Associates. The guidance range for
cash contributions includes both cash contributions for normal
operations of the facility as well as Alpha's 2025 share of the
investments in DTA's facility upgrade program.
The company expects a tax rate of between 0% and 5% for calendar
year 2025.
2024 Performance Update
As of October 23, 2024, for the
2024 calendar year, Alpha has committed and priced approximately
86% of its metallurgical coal for 2024 at an average price of
$152.42 per ton and 100% of thermal
coal for the year at an average expected price of $75.97 per ton.
|
2024
Guidance
|
2025
Guidance
|
|
in millions of
tons
|
Low
|
High
|
Low
|
High
|
|
Metallurgical
|
15.5
|
16.5
|
15.0
|
16.0
|
|
Thermal
|
0.9
|
1.3
|
1.0
|
1.4
|
|
Met Segment - Total
Shipments
|
16.4
|
17.8
|
16.0
|
17.4
|
|
|
|
|
|
|
Committed/Priced1,2,3
|
Committed
|
Average
Price
|
Committed
|
Average
Price
|
|
Metallurgical -
Domestic
|
|
$160.73
|
|
$152.51
|
|
Metallurgical -
Export
|
|
$149.28
|
|
|
|
Metallurgical
Total
|
86 %
|
$152.42
|
24 %
|
$152.51
|
|
Thermal
|
100 %
|
$75.97
|
96 %
|
$79.90
|
|
Met
Segment
|
88 %
|
$145.90
|
29 %
|
$135.27
|
|
|
|
|
|
|
Committed/Unpriced1,3
|
Committed
|
|
Committed
|
|
|
Metallurgical
Total
|
14 %
|
|
35 %
|
|
|
Thermal
|
— %
|
|
— %
|
|
|
Met
Segment
|
12 %
|
|
32 %
|
|
|
|
|
|
|
|
Costs per
ton4
|
Low
|
High
|
Low
|
High
|
|
Met Segment
|
$110.00
|
$116.00
|
$103.00
|
$108.00
|
|
|
|
|
|
|
In millions
(except taxes)
|
Low
|
High
|
Low
|
High
|
|
SG&A5
|
$60
|
$66
|
$53
|
$59
|
|
Idle Operations
Expense
|
$25
|
$33
|
$18
|
$28
|
|
Net Cash Interest
Income
|
$10
|
$14
|
$2
|
$10
|
|
DD&A
|
$160
|
$180
|
$165
|
$185
|
|
Capital
Expenditures
|
$210
|
$240
|
$152
|
$182
|
|
Capital Contributions
to Equity Affiliates6
|
$32
|
$42
|
$44
|
$54
|
|
Tax Rate
|
5 %
|
10 %
|
0 %
|
5 %
|
|
|
|
Notes:
|
|
1.
|
Based on committed and
priced coal shipments as of October 23, 2024. Committed percentage
based on the midpoint of shipment guidance range.
|
|
2.
|
Actual average per-ton
realizations on committed and priced tons recognized in future
periods may vary based on actual freight expense in future periods
relative to assumed freight expense embedded in projected average
per-ton realizations.
|
|
3.
|
Includes estimates of
future coal shipments based upon contract terms and anticipated
delivery schedules. Actual coal shipments may vary from these
estimates.
|
|
4.
|
Note: The Company is
unable to present a quantitative reconciliation of its
forward-looking non-GAAP cost of coal sales per ton sold financial
measures to the most directly comparable GAAP measures without
unreasonable efforts due to the inherent difficulty in forecasting
and quantifying with reasonable accuracy significant items required
for the reconciliation. The most directly comparable GAAP measure,
GAAP cost of sales, is not accessible without unreasonable efforts
on a forward-looking basis. The reconciling items include freight
and handling costs, which are a component of GAAP cost of sales.
Management is unable to predict without unreasonable efforts
freight and handling costs due to uncertainty as to the end market
and FOB point for uncommitted sales volumes and the final shipping
point for export shipments. These amounts have varied historically
and may continue to vary significantly from quarter to quarter and
material changes to these items could have a significant effect on
our future GAAP results.
|
|
5.
|
Excludes expenses
related to non-cash stock compensation and non-recurring
expenses.
|
|
6.
|
Includes contributions
to fund normal operations at our DTA export facility and expected
capital investments related to the facility upgrades.
|
Conference Call
The company plans to hold a conference call regarding its third
quarter results on November 1, 2024, at 10:00 a.m. Eastern time. The conference call will
be available live on the investor section of the company's website
at https://alphametresources.com/investors. Analysts who would like
to participate in the conference call should dial 877-407-0832
(domestic toll-free) or 201-689-8433 (international) approximately
15 minutes prior to start time.
About Alpha Metallurgical Resources
Alpha Metallurgical Resources (NYSE: AMR) is a Tennessee-based mining company with operations
across Virginia and West Virginia. With customers across the
globe, high-quality reserves and significant port capacity, Alpha
reliably supplies metallurgical products to the steel industry. For
more information, visit www.AlphaMetResources.com.
Forward-Looking Statements
This news release includes forward-looking
statements. These forward-looking statements are based on
Alpha's expectations and beliefs concerning future events and
involve risks and uncertainties that may cause actual results to
differ materially from current expectations. These factors are
difficult to predict accurately and may be beyond Alpha's
control. Forward-looking statements in this news release or
elsewhere speak only as of the date made. New uncertainties
and risks arise from time to time, and it is impossible for Alpha
to predict these events or how they may affect Alpha. Except
as required by law, Alpha has no duty to, and does not intend to,
update or revise the forward-looking statements in this news
release or elsewhere after the date this release is issued. In
light of these risks and uncertainties, investors should keep in
mind that results, events or developments discussed in any
forward-looking statement made in this news release may not
occur. See Alpha's filings with the U.S. Securities and
Exchange Commission for more information.
FINANCIAL TABLES FOLLOW
Non-GAAP Financial Measures
The discussion below contains "non-GAAP financial measures."
These are financial measures that either exclude or include amounts
that are not excluded or included in the most directly comparable
measures calculated and presented in accordance with generally
accepted accounting principles in the
United States ("U.S. GAAP" or "GAAP"). Specifically, we make
use of the non-GAAP financial measures "Adjusted EBITDA," "non-GAAP
coal revenues," "non-GAAP cost of coal sales," and "non-GAAP coal
margin." We use Adjusted EBITDA to measure the operating
performance of our segments and allocate resources to the segments.
Adjusted EBITDA does not purport to be an alternative to net income
as a measure of operating performance or any other measure of
operating results, financial performance, or liquidity presented in
accordance with GAAP. Moreover, this measure is not calculated
identically by all companies and therefore may not be comparable to
similarly titled measures used by other companies. Adjusted EBITDA
is presented because management believes it is a useful indicator
of the financial performance of our coal operations. We use
non-GAAP coal revenues to present coal revenues generated,
excluding freight and handling fulfillment revenues. Non-GAAP coal
sales realization per ton for our operations is calculated as
non-GAAP coal revenues divided by tons sold. We use non-GAAP cost
of coal sales to adjust cost of coal sales to remove freight and
handling costs, depreciation, depletion and amortization -
production (excluding the depreciation, depletion and amortization
related to selling, general and administrative functions),
accretion on asset retirement obligations, amortization of acquired
intangibles, net, and idled and closed mine costs. Non-GAAP cost of
coal sales per ton for our operations is calculated as non-GAAP
cost of coal sales divided by tons sold. Non-GAAP coal margin per
ton for our coal operations is calculated as non-GAAP coal sales
realization per ton for our coal operations less non-GAAP cost of
coal sales per ton for our coal operations. The presentation of
these measures should not be considered in isolation, or as a
substitute for analysis of our results as reported under GAAP.
Management uses non-GAAP financial measures to supplement GAAP
results to provide a more complete understanding of the factors and
trends affecting the business than GAAP results alone. The
definition of these non-GAAP measures may be changed periodically
by management to adjust for significant items important to an
understanding of operating trends and to adjust for items that may
not reflect the trend of future results by excluding transactions
that are not indicative of our core operating performance.
Furthermore, analogous measures are used by industry analysts to
evaluate the Company's operating performance. Because not all
companies use identical calculations, the presentations of these
measures may not be comparable to other similarly titled measures
of other companies and can differ significantly from company to
company depending on long-term strategic decisions regarding
capital structure, the tax jurisdictions in which companies
operate, capital investments and other factors.
Included below are reconciliations of non-GAAP financial
measures to GAAP financial measures. For comparability purposes,
certain immaterial segment information for the three and nine
months ended September 30, 2023 have
been recast to conform to the current year presentation.
|
ALPHA METALLURGICAL
RESOURCES, INC. AND SUBSIDIARIES
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(Amounts in
thousands, except share and per share data)
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Revenues:
|
|
|
|
|
|
|
|
|
Coal
revenues
|
$
669,783
|
|
$
738,998
|
|
$
2,331,196
|
|
$
2,499,503
|
|
Other
revenues
|
2,114
|
|
2,822
|
|
8,742
|
|
11,923
|
|
Total
revenues
|
671,897
|
|
741,820
|
|
2,339,938
|
|
2,511,426
|
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
Cost of coal sales
(exclusive of items shown
separately below)
|
598,725
|
|
564,608
|
|
1,910,847
|
|
1,687,259
|
|
Depreciation,
depletion and amortization
|
42,414
|
|
32,582
|
|
126,495
|
|
94,231
|
|
Accretion on asset
retirement obligations
|
6,326
|
|
6,376
|
|
18,726
|
|
19,129
|
|
Amortization of
acquired intangibles, net
|
1,675
|
|
2,069
|
|
5,025
|
|
6,458
|
|
Selling, general and
administrative expenses
(exclusive of depreciation, depletion and
amortization shown separately above)
|
15,987
|
|
18,053
|
|
57,169
|
|
56,251
|
|
Other operating loss
(income)
|
1,461
|
|
973
|
|
3,813
|
|
(1,665)
|
|
Total costs and
expenses
|
666,588
|
|
624,661
|
|
2,122,075
|
|
1,861,663
|
|
Income from
operations
|
5,309
|
|
117,159
|
|
217,863
|
|
649,763
|
|
Other (expense)
income:
|
|
|
|
|
|
|
|
|
Interest
expense
|
(1,041)
|
|
(1,746)
|
|
(3,228)
|
|
(5,322)
|
|
Interest
income
|
5,145
|
|
4,639
|
|
13,256
|
|
8,911
|
|
Equity loss in
affiliates
|
(7,011)
|
|
(6,660)
|
|
(14,568)
|
|
(11,582)
|
|
Miscellaneous expense,
net
|
(2,685)
|
|
(614)
|
|
(8,259)
|
|
(857)
|
|
Total other expense,
net
|
(5,592)
|
|
(4,381)
|
|
(12,799)
|
|
(8,850)
|
|
(Loss) income before
income taxes
|
(283)
|
|
112,778
|
|
205,064
|
|
640,913
|
|
Income tax benefit
(expense)
|
4,087
|
|
(18,964)
|
|
(15,356)
|
|
(94,973)
|
|
Net income
|
$
3,804
|
|
$
93,814
|
|
$
189,708
|
|
$
545,940
|
|
|
|
|
|
|
|
|
|
Basic income per common
share
|
$
0.29
|
|
$
6.88
|
|
$
14.58
|
|
$
37.87
|
|
Diluted income per
common share
|
$
0.29
|
|
$
6.65
|
|
$
14.43
|
|
$
36.46
|
|
|
|
|
|
|
|
|
|
Weighted average shares
– basic
|
13,017,820
|
|
13,633,640
|
|
13,011,234
|
|
14,416,289
|
|
Weighted average shares
– diluted
|
13,092,019
|
|
14,110,488
|
|
13,146,566
|
|
14,973,168
|
|
ALPHA METALLURGICAL RESOURCES, INC.
AND SUBSIDIARIES
CONDENSED
CONSOLIDATED BALANCE SHEETS (Unaudited)
(Amounts in
thousands, except share and per share data)
|
|
September 30,
2024
|
|
December 31,
2023
|
|
Assets
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
484,560
|
|
$
268,207
|
|
Trade accounts
receivable, net of allowance for credit losses of $1,287 and $234
as of
September 30, 2024 and December 31, 2023, respectively
|
375,869
|
|
509,682
|
|
Inventories,
net
|
200,108
|
|
231,344
|
|
Prepaid expenses and
other current assets
|
32,427
|
|
39,064
|
|
Total current
assets
|
1,092,964
|
|
1,048,297
|
|
Property, plant, and
equipment, net of accumulated depreciation and amortization of
$647,259 and $558,905 as of September 30, 2024 and December 31,
2023, respectively
|
620,929
|
|
588,992
|
|
Owned and leased
mineral rights, net of accumulated depletion and amortization
of
$120,206 and $99,826 as of September 30, 2024 and December 31,
2023, respectively
|
441,708
|
|
451,160
|
|
Other acquired
intangibles, net of accumulated amortization of $43,568 and $38,543
as
of September 30, 2024 and December 31, 2023,
respectively
|
41,554
|
|
46,579
|
|
Long-term restricted
investments
|
42,512
|
|
40,597
|
|
Long-term restricted
cash
|
121,077
|
|
115,918
|
|
Deferred income
taxes
|
8,857
|
|
8,028
|
|
Other non-current
assets
|
109,818
|
|
106,486
|
|
Total assets
|
$
2,479,419
|
|
$
2,406,057
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Current portion of
long-term debt
|
$
3,101
|
|
$
3,582
|
|
Trade accounts
payable
|
111,448
|
|
128,836
|
|
Accrued expenses and
other current liabilities
|
190,085
|
|
177,512
|
|
Total current
liabilities
|
304,634
|
|
309,930
|
|
Long-term
debt
|
3,582
|
|
6,792
|
|
Workers' compensation
and black lung obligations
|
182,062
|
|
189,226
|
|
Pension
obligations
|
104,610
|
|
101,908
|
|
Asset retirement
obligations
|
170,643
|
|
166,509
|
|
Deferred income
taxes
|
41,088
|
|
39,142
|
|
Other non-current
liabilities
|
22,173
|
|
18,622
|
|
Total
liabilities
|
828,792
|
|
832,129
|
|
Commitments and
Contingencies
|
|
|
|
|
Stockholders'
Equity
|
|
|
|
|
Preferred stock - par
value $0.01, 5,000,000 shares authorized, none issued
|
—
|
|
—
|
|
Common stock - par
value $0.01, 50,000,000 shares authorized, 22,382,945 issued
and
13,016,010 outstanding at September 30, 2024 and 22,058,135 issued
and 12,938,679
outstanding at December 31, 2023
|
224
|
|
221
|
|
Additional paid-in
capital
|
836,803
|
|
834,482
|
|
Accumulated other
comprehensive loss
|
(48,080)
|
|
(40,587)
|
|
Treasury stock, at
cost: 9,366,935 shares at September 30, 2024 and 9,119,456 shares
at
December 31, 2023
|
(1,296,916)
|
|
(1,189,715)
|
|
Retained
earnings
|
2,158,596
|
|
1,969,527
|
|
Total stockholders'
equity
|
1,650,627
|
|
1,573,928
|
|
Total liabilities and
stockholders' equity
|
$
2,479,419
|
|
$
2,406,057
|
|
ALPHA METALLURGICAL
RESOURCES, INC. AND SUBSIDIARIES
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(Amounts in
thousands)
|
|
Nine Months Ended
September 30,
|
|
2024
|
|
2023
|
|
Operating
activities:
|
|
|
|
|
Net income
|
$
189,708
|
|
$
545,940
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
Depreciation,
depletion and amortization
|
126,495
|
|
94,231
|
|
Amortization of
acquired intangibles, net
|
5,025
|
|
6,458
|
|
Amortization of debt
issuance costs and accretion of debt discount
|
839
|
|
1,585
|
|
Loss (gain) on
disposal of assets
|
31
|
|
(6,089)
|
|
Accretion on asset
retirement obligations
|
18,726
|
|
19,129
|
|
Employee benefit
plans, net
|
15,123
|
|
9,989
|
|
Deferred income
taxes
|
3,254
|
|
27,898
|
|
Stock-based
compensation
|
9,317
|
|
9,678
|
|
Equity loss in
affiliates
|
14,568
|
|
11,582
|
|
Other, net
|
(97)
|
|
(123)
|
|
Changes in operating
assets and liabilities
|
140,672
|
|
(68,472)
|
|
Net cash provided
by operating activities
|
523,661
|
|
651,806
|
|
Investing
activities:
|
|
|
|
|
Capital
expenditures
|
(156,167)
|
|
(183,836)
|
|
Proceeds on disposal
of assets
|
763
|
|
7,855
|
|
Cash paid for business
acquired
|
—
|
|
(11,919)
|
|
Purchases of
investment securities
|
(37,015)
|
|
(166,515)
|
|
Sales and maturities
of investment securities
|
36,529
|
|
249,598
|
|
Capital contributions
to equity affiliates
|
(22,865)
|
|
(21,844)
|
|
Other, net
|
24
|
|
24
|
|
Net cash used in
investing activities
|
(178,731)
|
|
(126,637)
|
|
Financing
activities:
|
|
|
|
|
Principal repayments
of long-term debt
|
(1,748)
|
|
(1,686)
|
|
Dividend and dividend
equivalents paid
|
(3,077)
|
|
(99,731)
|
|
Common stock
repurchases and related expenses
|
(117,648)
|
|
(403,385)
|
|
Other, net
|
(945)
|
|
3,302
|
|
Net cash used in
financing activities
|
(123,418)
|
|
(501,500)
|
|
Net increase in cash
and cash equivalents and restricted cash
|
221,512
|
|
23,669
|
|
Cash and cash
equivalents and restricted cash at beginning of period
|
384,125
|
|
355,394
|
|
Cash and cash
equivalents and restricted cash at end of period
|
$
605,637
|
|
$
379,063
|
|
|
|
|
|
Supplemental
disclosure of noncash investing and financing
activities:
|
|
|
|
|
Financing leases and
capital financing - equipment
|
$
1
|
|
$
2,059
|
|
Accrued capital
expenditures
|
$
6,845
|
|
$
11,618
|
|
Accrued common stock
repurchases and stock repurchase excise tax
|
$
4,652
|
|
$
6,275
|
|
Accrued dividend
payable
|
$
424
|
|
$
9,418
|
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 September
30,
|
|
2024
|
|
2023
|
|
Cash and cash
equivalents
|
$
484,560
|
|
$
296,059
|
|
Long-term restricted
cash
|
121,077
|
|
83,004
|
|
Total cash and cash
equivalents and restricted cash shown in the Condensed
Consolidated Statements of Cash Flows
|
$
605,637
|
|
$
379,063
|
|
ALPHA METALLURGICAL
RESOURCES, INC. AND SUBSIDIARIES
ADJUSTED EBITDA
RECONCILIATION
(Amounts in
thousands)
|
|
Three Months
Ended
|
|
Nine Months Ended
September 30,
|
|
September 30,
2024
|
|
June 30,
2024
|
|
September 30,
2023
|
|
2024
|
|
2023
|
|
Net income
|
$
3,804
|
|
$
58,909
|
|
$
93,814
|
|
$
189,708
|
|
$
545,940
|
|
Interest
expense
|
1,041
|
|
1,101
|
|
1,746
|
|
3,228
|
|
5,322
|
|
Interest
income
|
(5,145)
|
|
(4,140)
|
|
(4,639)
|
|
(13,256)
|
|
(8,911)
|
|
Income tax (benefit)
expense
|
(4,087)
|
|
5,278
|
|
18,964
|
|
15,356
|
|
94,973
|
|
Depreciation, depletion
and
amortization
|
42,414
|
|
43,380
|
|
32,582
|
|
126,495
|
|
94,231
|
|
Non-cash stock
compensation expense
|
3,013
|
|
3,535
|
|
2,999
|
|
9,317
|
|
9,678
|
|
Accretion on asset
retirement
obligations
|
6,326
|
|
6,257
|
|
6,376
|
|
18,726
|
|
19,129
|
|
Amortization of
acquired
intangibles, net
|
1,675
|
|
1,675
|
|
2,069
|
|
5,025
|
|
6,458
|
|
Adjusted
EBITDA
|
$
49,041
|
|
$
115,995
|
|
$
153,911
|
|
$
354,599
|
|
$
766,820
|
|
ALPHA
METALLURGICAL RESOURCES, INC. AND SUBSIDIARIES
RESULTS OF
OPERATIONS
|
|
Three Months
Ended
|
|
(In thousands,
except for per ton data)
|
September 30,
2024
|
|
June 30,
2024
|
|
September 30,
2023
|
|
Coal
revenues
|
$
669,783
|
|
$
800,130
|
|
$
738,998
|
|
Coal revenues - All
Other
|
—
|
|
—
|
|
(7,517)
|
|
Coal revenues -
Met
|
669,783
|
|
800,130
|
|
731,481
|
|
Less: Freight and
handling fulfillment revenues
|
(119,093)
|
|
(154,402)
|
|
(94,770)
|
|
Non-GAAP Coal revenues
- Met
|
$
550,690
|
|
$
645,728
|
|
$
636,711
|
|
Non-GAAP Coal sales
realization per ton - Met
|
$
132.76
|
|
$
141.86
|
|
$
154.73
|
|
|
|
|
|
|
|
Cost of coal sales
(exclusive of items shown separately below)
|
$
598,725
|
|
$
663,809
|
|
$
564,608
|
|
Depreciation, depletion
and amortization - production (1)
|
42,108
|
|
43,076
|
|
32,270
|
|
Accretion on asset
retirement obligations
|
6,326
|
|
6,257
|
|
6,376
|
|
Amortization of
acquired intangibles, net
|
1,675
|
|
1,675
|
|
2,069
|
|
Total Cost of coal
sales
|
648,834
|
|
714,817
|
|
605,323
|
|
Total Cost of coal
sales - All Other
|
—
|
|
—
|
|
(14,056)
|
|
Total Cost of coal
sales - Met
|
648,834
|
|
714,817
|
|
591,267
|
|
Less: Freight and
handling costs - Met
|
(119,093)
|
|
(154,402)
|
|
(94,770)
|
|
Less: Depreciation,
depletion and amortization - production -
Met (1)
|
(42,108)
|
|
(43,076)
|
|
(31,893)
|
|
Less: Accretion on
asset retirement obligations - Met
|
(6,326)
|
|
(6,257)
|
|
(3,722)
|
|
Less: Amortization of
acquired intangibles, net - Met
|
(1,675)
|
|
(1,675)
|
|
(2,069)
|
|
Less: Idled and closed
mine costs - Met
|
(5,625)
|
|
(11,818)
|
|
(6,353)
|
|
Non-GAAP Cost of coal
sales - Met
|
$
474,007
|
|
$
497,589
|
|
$
452,460
|
|
Non-GAAP Cost of coal
sales per ton - Met
|
$
114.27
|
|
$
109.31
|
|
$
109.95
|
|
|
|
|
|
|
|
GAAP Coal margin -
Met
|
$
20,949
|
|
$
85,313
|
|
$
140,214
|
|
GAAP Coal margin per
ton - Met
|
$
5.05
|
|
$
18.74
|
|
$
34.07
|
|
|
|
|
|
|
|
Non GAAP Coal margin -
Met
|
$
76,683
|
|
$
148,139
|
|
$
184,251
|
|
Non GAAP Coal margin
per ton - Met
|
$
18.49
|
|
$
32.54
|
|
$
44.78
|
|
|
|
|
|
|
|
Tons sold -
Met
|
4,148
|
|
4,552
|
|
4,115
|
|
|
|
(1)
|
Depreciation, depletion
and amortization - production excludes the depreciation, depletion
and amortization related to selling, general and administrative
functions.
|
|
Nine Months
Ended
|
|
September 30,
2024
|
|
September 30,
2023
|
|
Coal
revenues
|
$
2,331,196
|
|
$
2,499,503
|
|
Coal revenues - All
Other
|
—
|
|
(47,041)
|
|
Coal revenues -
Met
|
2,331,196
|
|
2,452,462
|
|
Less: Freight and
handling fulfillment revenues
|
(407,219)
|
|
(319,244)
|
|
Non-GAAP Coal revenues
- Met
|
$
1,923,977
|
|
$
2,133,218
|
|
Non-GAAP Coal sales
realization per ton - Met
|
$
147.26
|
|
$
177.75
|
|
|
|
|
|
Cost of coal sales
(exclusive of items shown separately below)
|
$
1,910,847
|
|
$
1,687,259
|
|
Depreciation, depletion
and amortization - production (1)
|
125,580
|
|
93,343
|
|
Accretion on asset
retirement obligations
|
18,726
|
|
19,129
|
|
Amortization of
acquired intangibles, net
|
5,025
|
|
6,458
|
|
Total Cost of coal
sales
|
2,060,178
|
|
1,806,189
|
|
Total Cost of coal
sales - All Other
|
—
|
|
(53,877)
|
|
Total Cost of coal
sales - Met
|
2,060,178
|
|
1,752,312
|
|
Less: Freight and
handling costs - Met
|
(407,219)
|
|
(319,244)
|
|
Less: Depreciation,
depletion and amortization - production - Met
(1)
|
(125,580)
|
|
(92,421)
|
|
Less: Accretion on
asset retirement obligations - Met
|
(18,726)
|
|
(11,165)
|
|
Less: Amortization of
acquired intangibles, net - Met
|
(5,025)
|
|
(6,458)
|
|
Less: Idled and closed
mine costs - Met
|
(27,218)
|
|
(16,145)
|
|
Non-GAAP Cost of coal
sales - Met
|
$
1,476,410
|
|
$
1,306,879
|
|
Non-GAAP Cost of coal
sales per ton - Met
|
$
113.00
|
|
$
108.90
|
|
|
|
|
|
GAAP Coal margin -
Met
|
$
271,018
|
|
$
700,150
|
|
GAAP Coal margin per
ton - Met
|
$
20.74
|
|
$
58.34
|
|
|
|
|
|
Non GAAP Coal margin -
Met
|
$
447,567
|
|
$
826,339
|
|
Non GAAP Coal margin
per ton - Met
|
$
34.26
|
|
$
68.86
|
|
|
|
|
|
Tons sold -
Met
|
13,065
|
|
12,001
|
|
|
|
(1)
|
Depreciation, depletion
and amortization - production excludes the depreciation, depletion
and amortization related to selling, general and administrative
functions.
|
|
Three Months Ended
September 30, 2024
|
|
(In thousands,
except for per ton data)
|
Tons
Sold
|
|
Coal
Revenues
|
|
Non-GAAP
Coal sales
realization per
ton
|
|
% of Met Tons
Sold
|
|
Export - other pricing
mechanisms
|
1,864
|
|
$
241,027
|
|
$
129.31
|
|
48 %
|
|
Domestic
|
910
|
|
145,922
|
|
$
160.35
|
|
23 %
|
|
Export - Australian
indexed
|
1,126
|
|
144,810
|
|
$
128.61
|
|
29 %
|
|
Total Met segment - met
coal
|
3,900
|
|
531,759
|
|
$
136.35
|
|
100 %
|
|
Met segment - thermal
coal
|
248
|
|
18,931
|
|
$
76.33
|
|
|
|
Non-GAAP Coal
revenues
|
4,148
|
|
550,690
|
|
$
132.76
|
|
|
|
Add: Freight and
handling fulfillment revenues
|
—
|
|
119,093
|
|
|
|
|
|
Coal
revenues
|
4,148
|
|
$
669,783
|
|
|
|
|
INVESTOR & MEDIA CONTACT: EMILY O'QUINN
InvestorRelations@AlphaMetResources.com
CorporateCommunications@AlphaMetResources.com
(423) 573-0369
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SOURCE ALPHA METALLURGICAL RESOURCES, INC.