- Reports net loss from continuing operations of $55 million for the fourth quarter 2020 - Posts Adjusted EBITDA(1) of $7 million for the fourth quarter 2020 - Continues strong cost management across all operating segments - Closes transaction divesting Cumberland Mine, furthering strategic repositioning towards a pure metallurgical coal producer - Completes name change to Alpha Metallurgical Resources, Inc. - Appoints new board members to diversify and enhance corporate governance - Reiterates 2021 operating guidance
BRISTOL, March 15, 2021 - Alpha Metallurgical Resources, Inc. (NYSE: AMR), a leading U.S. supplier of metallurgical products for the steel industry, today reported results for the fourth quarter ending December 31, 2020.
(millions, except per share)
Three months ended
Dec. 31, 2020
Sept. 30, 2020
Dec. 31, 2019
Net loss(2)
$(55.1)
$(68.5)
$(210.2)
Net loss(2) per diluted share
$(3.00)
$(3.74)
$(11.55)
Adjusted EBITDA(1)
$7.4
$12.4
$22.1
Operating cash flow(3)
$56.2
$(5.9)
$(5.7)
Capital expenditures(3)
$35.1
$27.8
$48.2
Tons of coal sold(2)
3.7
4.0
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.
2. From continuing operations.
3. Includes discontinued operations.
"Despite the numerous challenges of the last year, we are proud of our accomplishments including significant operating cost reductions, refreshed board composition, and our rebranding to Alpha Metallurgical Resources, which reflects our strategic shift and focus on metallurgical coal," said chairman and chief executive officer, David Stetson. "We remain confident that in 2021 we can take advantage of improved market conditions and met coal prices as expected global infrastructure spending and stimulus actions come to fruition."
Financial Performance
Alpha reported a net loss from continuing operations of $55.1 million, or $3.00 per diluted share, for the fourth quarter 2020. In the third quarter 2020, the company had a net loss from continuing operations of $68.5 million or $3.74 diluted share.
Total Adjusted EBITDA was $7.4 million for the fourth quarter, compared with $12.4 million in the third quarter, primarily due to lower coal revenues and higher Met costs per ton.
Coal Revenues
(millions)
Three months ended
Dec. 31, 2020
Sept. 30, 2020
Met
$289.8
$295.4
CAPP - Thermal
$33.6
$39.8
Met (excl. f&h)(1)
$241.5
$245.6
CAPP - Thermal (excl. f&h)(1)
$32.1
$36.8
Tons Sold
(millions)
Three months ended
Dec. 31, 2020
Sept. 30, 2020
Met
3.2
3.3
CAPP - Thermal
0.5
0.6
1. Represents Non-GAAP coal revenues which is defined and reconciled under "Non-GAAP Financial Measures" and "Results of Operations."
The slight Met revenue decline in the fourth quarter was driven by reduced volume relative to the third quarter. The CAPP - Thermal revenues also decreased due to lower volumes.
Coal Sales Realization(1)
(per ton)
Three months ended
Dec. 31, 2020
Sept. 30, 2020
Met
$75.24
$73.79
CAPP - Thermal
$59.81
$57.86
1. Represents Non-GAAP coal sales realization which is defined and reconciled under "Non-GAAP Financial Measures" and "Results of Operations."
Global metallurgical coal prices were mixed, with Australian prices declining while Atlantic prices showed modest improvement, resulting in our average Met coal sales realization increase of two percent against the prior quarter to $75.24 per ton. The CAPP - Thermal segment also saw slightly higher realization in the fourth quarter.
Cost of Coal Sales
(in millions, except per ton data)
Three months ended
Dec. 31, 2020
Sept. 30, 2020
Cost of Coal Sales
$301.8
$309.7
Cost of Coal Sales (excl. f&h/idle)(1)
$245.9
$250.7
(per ton)
Met(1)
$69.25
$66.51
CAPP - Thermal(1)
$44.15
$45.98
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 fourth quarter, the company reported another sub-$70 per ton cost performance in the Met segment, with costs averaging $69.25 per ton, down from $82.28 in the year-ago quarter. The third quarter 2020 cost of coal sales was a record low of $66.51 per ton. Fewer mines, combined with higher production per mine and reduced labor force, were instrumental in driving the cost of coal sales per ton lower in 2020.
The CAPP - Thermal segment also continued its impressive cost of coal sales performance, with fourth quarter cost of $44.15 per ton as compared to $45.98 for the prior quarter.
Selling, general and administrative (SG&A) and depreciation, depletion and amortization (DD&A) expenses
(millions)
Three months ended
Dec. 31, 2020
Sept. 30, 2020
SG&A
$15.3
$14.5
Less: non-cash stock compensation and one-time expenses
$(0.8)
$(1.0)
Non-GAAP SG&A(1)
$14.5
$13.5
DD&A
$(4.0)
$49.2
1. Represents Non-GAAP SG&A which is defined under "Non-GAAP Financial Measures."
Alpha's fourth quarter 2020 SG&A expenses were $14.5 million, excluding non-cash stock compensation expense and one-time expenses of $0.8 million, compared with $13.5 million in the prior quarter.
Liquidity and Capital Resources
"In the fourth quarter, our teams continued their exceptional focus on cost performance with another quarter of sub-$70 met costs, and a full year average met cost of $70.19," said Andy Eidson, Alpha's president and chief financial officer. "While the year as a whole was challenging, both in terms of pricing and pandemic uncertainty, Alpha made progress on a number of our stated strategic goals. Divesting the Cumberland Mine has not only hastened our transition to a pure metallurgical producer, but has also meaningfully reduced our bonding and collateral requirements."
Cash provided by operating activities for the fourth quarter 2020 was $56.2 million, which includes the receipt of $66.1 million in accelerated alternative minimum tax (AMT) credit monetization refund, and capital expenditures for the fourth quarter were $35.1 million. In the prior period, the cash used in operating activities was $5.9 million and capital expenditures were $27.8 million.
As of December 31, 2020, Alpha had $139.2 million in unrestricted cash and $157.4 million in restricted cash, deposits and investments. Total long-term debt, including the current portion of long-term debt as of December 31, 2020, was $582.5 million, down approximately $15 million from the prior quarter. At the end of the fourth quarter, the company had total liquidity of $139.2 million, including cash and cash equivalents of $139.2 million and no remaining unused availability under the Asset-Based Revolving Credit Facility (ABL). The future available capacity under the ABL is subject to inventory and accounts receivable collateral requirements and the maintenance of certain financial ratios. As of December 31, 2020, the company had $3.4 million in borrowings and $123.1 million in letters of credit outstanding under the ABL. In January 2021, subsequent to the quarter close, the company posted $25.0 million in collateral to remain in compliance due to fluctuations in the borrowing base, a portion of which was then used to repay $3.4 million in borrowings under the ABL.
Operational and Strategic Update
As part of the ongoing strategic shift towards becoming a pure-play met company, Alpha closed a transaction to divest the Cumberland Mine and related assets on December 10, 2020. The previously announced transaction transferred the associated coal reserves, mining permits and operations, infrastructure and equipment to Iron Senergy LLC, releasing Alpha from all reclamation obligations, totaling $169 million in undiscounted future cash flows. After the Cumberland divestiture, the company operates only one remaining thermal mine, which is expected to cease operation by the end of 2022.
As a result of this renewed focus on supplying metallurgical products to the steel industry, the company also rebranded and changed its name to Alpha Metallurgical Resources, Inc., effective February 1, 2021. The company's common stock began trading on the New York Stock Exchange under a new symbol, AMR, shortly thereafter.
In addition, Alpha continued to enhance its board of directors by adding Michael Quillen, the founder of Alpha Natural Resources and an industry veteran, as lead independent director in November 2020. Subsequent to the quarter end, Alpha appointed three new directors to the board. Effective February 1, Kenneth Courtis, Elizabeth Fessenden and Daniel Smith joined the board as independent directors.
2021 Full-Year Guidance
In connection with the company's strategic shift toward a pure-play metallurgical business, the reporting segments in the following guidance table have been reconfigured. The CAPP - Thermal reporting segment has been eliminated and is now included in the All Other segment. The prior CAPP - Met segment is now called the Met segment.
The company reiterates its previously issued 2021 operating guidance with coal shipments guidance range of 14.8 million tons to 16.2 million tons, with Met segment volume expected to be between 13.5 million to 14.5 million tons with pure metallurgical coal shipments of 12.5 million to 13.0 million tons and incidental thermal shipments in this segment of 1.0 million to 1.5 million tons. Our All Other segment volume is anticipated to be between 1.3 million tons to 1.7 million tons.
For 2021, Alpha has committed and priced approximately 53% of its metallurgical coal within the Met segment at an average price of $85.47 per ton and 86% of thermal coal in the Met segment at an average expected price of $50.80 per ton. In the All Other segment the company is 100% committed and priced at an average price of $57.57 per ton.
The company expects our strong cost performance to continue in 2021 with Met segment cost of coal sales per ton anticipated at a range of $68.00 to $74.00 and our All Other segment is expected to be in the range of $45.00 to $49.00 per ton.
For 2021, the company expects its SG&A to be in the range of $44 million to $49 million, excluding non-recurring items and stock compensation. Our overall 2021 capital expenditures guidance is in a range of $75 million to $95 million, near the maintenance capital level. Depreciation, depletion and amortization is expected to be between $125 million and $145 million and cash interest expense in the range of $51 million and $55 million.
2021 Guidance
in millions of tons
Low
High
Metallurgical
12.5
13.0
Thermal
1.0
1.5
Met Segment
13.5
14.5
All Other
1.3
1.7
Total Shipments
14.8
16.2
Committed/Priced1,2,3
Committed
Average Price
Metallurgical
53
%
$85.47
Thermal
86
%
$50.80
Met Segment
56
%
$80.68
All Other
100
%
$57.57
Committed/Unpriced1,3
Committed
Metallurgical
32
%
Thermal
8
%
Met Segment
30
%
All Other
-
%
Costs per ton4
Low
High
Met Segment
$68.00
$74.00
All Other
$45.00
$49.00
In millions (except taxes)
Low
High
SG&A5
$44
$49
Idle Operations Expense
$24
$30
Cash Interest Expense
$51
$55
DD&A
$125
$145
Capital Expenditures
$75
$95
Tax Rate
-
%
5
%
Notes:
1.
Based on committed and priced coal shipments as of March 11, 2021. Committed percentage based on the midpoint of shipment guidance range.
2.
Actual average per-ton realizations on committed and priced tons recognized in future periods may vary based on actual freight expense in future periods relative to assumed freight expense embedded in projected average per-ton realizations.
3.
Includes estimates of future coal shipments based upon contract terms and anticipated delivery schedules. Actual coal shipments may vary from these estimates.
4.
Note: The Company is unable to present a quantitative reconciliation of its forward-looking non-GAAP cost of coal sales per ton sold financial measures to the most directly comparable GAAP measures without unreasonable efforts due to the inherent difficulty in forecasting and quantifying with reasonable accuracy significant items required for the reconciliation. The most directly comparable GAAP measure, GAAP cost of sales, is not accessible without unreasonable efforts on a forward- looking basis. The reconciling items include freight and handling costs, which are a component of GAAP cost of sales. Management is unable to predict without unreasonable efforts freight and handling costs due to uncertainty as to the end market and FOB point for uncommitted sales volumes and the final shipping point for export shipments. These amounts have historically varied and may continue to vary significantly from quarter to quarter and material changes to these items could have a significant effect on our future GAAP results.
5.
Excludes expenses related to non-cash stock compensation and non-recurring business development expenses.
Conference Call
The company plans to hold a conference call regarding its fourth quarter 2020 results on March 15, 2021, 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.alphametresources.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 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.
Media Contact CorporateCommunications@AlphaMetResources.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.
ALPHA METALLURGICAL RESOURCES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except share and per share data)
Three Months Ended December 31,
Year Ended December 31,
2020
2019
2020
2019
Revenues:
Coal revenues
$
323,360
$
431,457
$
1,413,124
$
1,995,934
Other revenues
491
1,381
3,063
5,346
Total revenues
323,851
432,838
1,416,187
2,001,280
Costs and expenses:
Cost of coal sales (exclusive of items shown separately below)
301,831
387,000
1,281,011
1,667,768
Depreciation, depletion and amortization
(4,036)
50,221
139,885
215,757
Accretion on asset retirement obligations
6,559
6,990
26,504
23,865
Amortization of acquired intangibles, net
4,748
3,137
9,214
(3,189)
Selling, general and administrative expenses (exclusive of depreciation, depletion and amortization shown separately above)
15,346
25,832
57,356
78,953
Merger-related costs
-
35
-
1,090
Asset impairment and restructuring
29,897
60,466
83,878
66,324
Goodwill impairment
-
124,353
-
124,353
Total other operating income:
Mark-to-market adjustment for acquisition-related obligations
4,676
(3,276)
(8,750)
(3,564)
Other (income) expense
(200)
7,518
(2,223)
(974)
Total costs and expenses
358,821
662,276
1,586,875
2,170,383
Loss from operations
(34,970)
(229,438)
(170,688)
(169,103)
Other (expense) income:
Interest expense
(18,290)
(17,444)
(74,528)
(67,521)
Interest income
153
1,701
7,027
7,247
Loss on modification and extinguishment of debt
-
-
-
(26,459)
Equity loss in affiliates
(388)
(2,070)
(3,473)
(6,874)
Miscellaneous loss, net
(1,519)
(7,393)
(1,972)
(10,195)
Total other expense, net
(20,044)
(25,206)
(72,946)
(103,802)
Loss from continuing operations before income taxes
(55,014)
(254,644)
(243,634)
(272,905)
Income tax (expense) benefit
(36)
44,407
2,164
53,287
Net loss from continuing operations
(55,050)
(210,237)
(241,470)
(219,618)
Discontinued operations:
(Loss) income from discontinued operations before income taxes
(45,103)
73,678
(205,429)
(105,185)
Income tax (expense) benefit from discontinued operations
-
(4,382)
-
8,484
(Loss) income from discontinued operations
(45,103)
69,296
(205,429)
(96,701)
Net loss
$
(100,153)
$
(140,941)
$
(446,899)
$
(316,319)
Basic loss per common share:
Loss from continuing operations
$
(3.00)
$
(11.55)
$
(13.20)
$
(11.68)
(Loss) income from discontinued operations
(2.47)
3.80
(11.22)
(5.14)
Net loss
$
(5.47)
$
(7.75)
$
(24.42)
$
(16.82)
Diluted loss per common share:
Loss from continuing operations
$
(3.00)
$
(11.55)
$
(13.20)
$
(11.68)
(Loss) income from discontinued operations
(2.47)
3.80
(11.22)
(5.14)
Net loss
$
(5.47)
$
(7.75)
$
(24.42)
$
(16.82)
Weighted average shares - basic
18,322,236
18,195,651
18,298,362
18,808,460
Weighted average shares - diluted
18,322,236
18,195,651
18,298,362
18,808,460
ALPHA METALLURGICAL RESOURCES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except share and per share data)
December 31, 2020
December 31, 2019
Assets
Current assets:
Cash and cash equivalents
$
139,227
$
212,803
Trade accounts receivable, net of allowance for doubtful accounts of $293 and $0 as of December 31, 2020 and 2019
145,670
224,173
Inventories, net
108,051
150,888
Prepaid expenses and other current assets
106,252
77,723
Current assets - discontinued operations
10,935
45,892
Total current assets
510,135
711,479
Property, plant, and equipment, net of accumulated depreciation and amortization of $382,423 and $256,378 as of December 31, 2020 and 2019
363,620
436,398
Owned and leased mineral rights, net of accumulated depletion and amortization of $35,143 and $27,548 as of December 31, 2020 and 2019
463,250
523,012
Other acquired intangibles, net of accumulated amortization of $25,700 and $26,806 as of December 31, 2020 and 2019
88,196
124,246
Long-term restricted cash
96,033
122,524
Deferred income taxes
-
33,065
Other non-current assets
149,382
189,475
Non-current assets - discontinued operations
9,473
162,624
Total assets
$
1,680,089
$
2,302,823
Liabilities and Stockholders' Equity
Current liabilities:
Current portion of long-term debt
$
28,830
$
28,476
Trade accounts payable
58,413
82,725
Acquisition-related obligations - current
19,099
33,639
Accrued expenses and other current liabilities
140,406
139,479
Current liabilities - discontinued operations
12,306
30,833
Total current liabilities
259,054
315,152
Long-term debt
553,697
564,458
Acquisition-related obligations - long-term
20,768
46,259
Workers' compensation and black lung obligations
230,081
228,850
Pension obligations
218,671
204,086
Asset retirement obligations
140,074
164,406
Deferred income taxes
480
422
Other non-current liabilities
28,072
26,822
Non-current liabilities - discontinued operations
29,090
56,246
Total liabilities
1,479,987
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 December 31, 2020 and 20.5 million issued and 18.2 million outstanding at December 31, 2019
206
205
Additional paid-in capital
779,424
775,707
Accumulated other comprehensive loss
(111,985)
(58,616)
Treasury stock, at cost: 2.3 million shares at December 31, 2020 and 2019
(107,014)
(107,984)
(Accumulated deficit) retained earnings
(360,529)
86,810
Total stockholders' equity
200,102
696,122
Total liabilities and stockholders' equity
$
1,680,089
$
2,302,823
ALPHA METALLURGICAL RESOURCES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands)
Year Ended December 31,
2020
2019
Operating activities:
Net loss
$
(446,899)
$
(316,319)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation, depletion and amortization
151,455
315,162
Amortization of acquired intangibles, net
10,075
(88)
Accretion of acquisition-related obligations discount
3,342
5,522
Amortization of debt issuance costs and accretion of debt discount
14,772
14,070
Mark-to-market adjustment for acquisition-related obligations
(8,750)
(3,564)
Loss on sale of business
36,113
-
(Gain) loss on disposal of assets
(2,401)
8,142
Gain on assets acquired in an exchange transaction
-
(9,083)
Accretion on asset retirement obligations
30,658
33,759
Employee benefit plans, net
14,439
20,846
Deferred income taxes
33,123
(12,098)
Goodwill impairment
-
124,353
Asset impairment and restructuring
256,518
83,485
Loss on modification and extinguishment of debt
-
26,459
Stock-based compensation
4,896
12,397
Equity in loss of affiliates
3,473
6,874
Other, net
(5,972)
(5,204)
Changes in operating assets and liabilities
Trade accounts receivable, net
91,190
47,424
Inventories, net
48,689
(40,694)
Prepaid expenses and other current assets
28,152
56,671
Deposits
(17,926)
15,170
Other non-current assets
(6,753)
(24,460)
Trade accounts payable
(28,620)
(28,148)
Accrued expenses and other current liabilities
15,428
(25,495)
Acquisition-related obligations
(32,560)
(28,128)
Asset retirement obligations
(19,375)
(111,616)
Other non-current liabilities
(43,831)
(33,557)
Net cash provided by operating activities
129,236
131,880
Investing activities:
Capital expenditures
(153,990)
(192,411)
Proceeds on disposal of assets
4,023
2,780
Cash paid on sale of business
(52,192)
-
Capital contributions to equity affiliates
(3,443)
(10,051)
Purchase of investment securities
(21,129)
(92,855)
Maturity of investment securities
16,685
100,250
Other, net
77
535
Net cash used in investing activities
(209,969)
(191,752)
Financing activities:
Proceeds from borrowings on debt
57,500
544,946
Principal repayments of debt
(59,768)
(552,809)
Principal repayments of financing lease obligations
(3,176)
(3,654)
Debt issuance costs
-
(6,689)
Common stock repurchases and related expenses
(209)
(37,622)
Principal repayments of notes payable
(16,723)
(14,818)
Other, net
-
952
Net cash used in financing activities
(22,376)
(69,694)
Net decrease in cash and cash equivalents and restricted cash
(103,109)
(129,566)
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
$
244,571
$
347,680
Supplemental cash flow information:
Cash paid for interest
$
49,294
$
51,877
Cash paid for income taxes
$
5
$
3,039
Cash received for income tax refunds
$
68,801
$
72,236
Supplemental disclosure of noncash investing and financing activities:
Financing leases and capital financing - equipment
$
4,411
$
5,324
Accrued capital expenditures
$
7,493
$
4,110
The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the Consolidated Balance Sheets that sum to the total of the same such amounts shown in the Consolidated Statements of Cash Flows.
As of December 31,
2020
2019
Cash and cash equivalents
$
139,227
$
212,793
Short-term restricted cash (included in Prepaid expenses and other current assets)
9,311
12,363
Long-term restricted cash
96,033
122,524
Total cash and cash equivalents and restricted cash shown in the Consolidated Statements of Cash Flows
$
244,571
$
347,680
ALPHA METALLURGICAL RESOURCES, INC. AND SUBSIDIARIES
Cost impact of coal inventory fair value adjustment (3)
-
-
-
-
8,209
Gain on assets acquired in an exchange transaction (4)
-
-
-
-
(9,083)
Management restructuring costs (5)
-
-
7,720
941
7,720
Loss on partial settlement of benefit obligations
-
1,735
6,446
2,966
6,446
Amortization of acquired intangibles, net
2,074
4,748
3,137
9,214
(3,189)
Adjusted EBITDA
$
12,360
$
7,398
$
22,076
$
83,402
$
264,104
(1) Asset impairment and restructuring for the year ended December 31, 2020 includes long-lived asset impairments of $80,954 related to asset groups recorded within the Met and CAPP - Thermal reporting segments and restructuring expense of $2,924 recorded in CAPP - Thermal and All Other reporting segments. Asset impairment for the year ended December 31, 2019 includes a long-lived asset impairment of $60,169 related to asset groups recorded within the Met and CAPP - Thermal reporting segments and an asset impairment of $6,155 primarily related to the write-off of prepaid purchased coal as a result of Blackjewel's Chapter 11 bankruptcy filing on July 1, 2019.
(2) 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.
(3) The cost impact of the coal inventory fair value adjustment as a result of the Merger was completed during the three months ended June 30, 2019.
(4) During the year ended December 31, 2019, the Company entered into an exchange transaction which primarily included the release of the PRB overriding royalty interest owed to the Company in exchange for met coal reserves which resulted in a gain of $9,083.
(5) Management restructuring costs are related to severance expense associated with senior management changes during the three months ended March 31, 2020 and the year ended December 31, 2019.
ALPHA METALLURGICAL RESOURCES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS
Three Months Ended September 30, 2020
(In thousands, except for per ton data)
Met
CAPP - Thermal
All Other
Consolidated
Coal revenues
$
295,376
$
39,813
$
-
$
335,189
Less: Freight and handling fulfillment revenues
(49,742)
(3,015)
-
(52,757)
Non-GAAP Coal revenues
$
245,634
$
36,798
$
-
$
282,432
Tons sold
3,329
636
-
3,965
Non-GAAP Coal sales realization per ton
$
73.79
$
57.86
$
-
$
71.23
Cost of coal sales (exclusive of items shown separately below)
$
276,248
$
33,999
$
(553)
$
309,694
Depreciation, depletion and amortization - production (1)
41,177
7,313
410
48,900
Accretion on asset retirement obligations
3,800
2,406
530
6,736
Amortization of acquired intangibles, net
2,535
(486)
25
2,074
Total Cost of coal sales
$
323,760
$
43,232
$
412
$
367,404
Less: Freight and handling costs
(49,742)
(3,015)
-
(52,757)
Less: Depreciation, depletion and amortization - production (1)
(41,177)
(7,313)
(410)
(48,900)
Less: Accretion on asset retirement obligations
(3,800)
(2,406)
(530)
(6,736)
Less: Amortization of acquired intangibles, net
(2,535)
486
(25)
(2,074)
Less: Idled and closed mine costs
(5,091)
(1,742)
546
(6,287)
Non-GAAP Cost of coal sales
$
221,415
$
29,242
$
(7)
$
250,650
Tons sold
3,329
636
-
3,965
Non-GAAP Cost of coal sales per ton
$
66.51
$
45.98
$
-
$
63.22
(1) Depreciation, depletion and amortization - production excludes the depreciation, depletion and amortization related to selling, general and administrative functions.
Three Months Ended September 30, 2020
(In thousands, except for per ton data)
Met
CAPP - Thermal
All Other
Consolidated
Coal revenues
$
295,376
$
39,813
$
-
$
335,189
Less: Total Cost of coal sales (per table above)
(323,760)
(43,232)
(412)
(367,404)
GAAP Coal margin
$
(28,384)
$
(3,419)
$
(412)
$
(32,215)
Tons sold
3,329
636
-
3,965
GAAP Coal margin per ton
$
(8.53)
$
(5.38)
$
-
$
(8.12)
GAAP Coal margin
$
(28,384)
$
(3,419)
$
(412)
$
(32,215)
Add: Depreciation, depletion and amortization - production (1)
41,177
7,313
410
48,900
Add: Accretion on asset retirement obligations
3,800
2,406
530
6,736
Add: Amortization of acquired intangibles, net
2,535
(486)
25
2,074
Add: Idled and closed mine costs
5,091
1,742
(546)
6,287
Non-GAAP Coal margin
$
24,219
$
7,556
$
7
$
31,782
Tons sold
3,329
636
-
3,965
Non-GAAP Coal margin per ton
$
7.28
$
11.88
$
-
$
8.02
(1) Depreciation, depletion and amortization - production excludes the depreciation, depletion and amortization related to selling, general and administrative functions.
Three Months Ended December 31, 2020
(In thousands, except for per ton data)
Met
CAPP - Thermal
All Other
Consolidated
Coal revenues
$
289,756
$
33,604
$
-
$
323,360
Less: Freight and handling fulfillment revenues
(48,251)
(1,548)
-
(49,799)
Non-GAAP Coal revenues
$
241,505
$
32,056
$
-
$
273,561
Tons sold
3,210
536
-
3,746
Non-GAAP Coal sales realization per ton
$
75.24
$
59.81
$
-
$
73.03
Cost of coal sales (exclusive of items shown separately below)
$
273,984
$
28,754
$
(907)
$
301,831
Depreciation, depletion and amortization - production (1)
2,381
1,031
(7,680)
(4,268)
Accretion on asset retirement obligations
3,328
2,259
972
6,559
Amortization of acquired intangibles, net
5,014
(291)
25
4,748
Total Cost of coal sales
$
284,707
$
31,753
$
(7,590)
$
308,870
Less: Freight and handling costs
(48,251)
(1,548)
-
(49,799)
Less: Depreciation, depletion and amortization - production (1)
(2,381)
(1,031)
7,680
4,268
Less: Accretion on asset retirement obligations
(3,328)
(2,259)
(972)
(6,559)
Less: Amortization of acquired intangibles, net
(5,014)
291
(25)
(4,748)
Less: Idled and closed mine costs
(3,445)
(3,543)
845
(6,143)
Non-GAAP Cost of coal sales
$
222,288
$
23,663
$
(62)
$
245,889
Tons sold
3,210
536
-
3,746
Non-GAAP Cost of coal sales per ton
$
69.25
$
44.15
$
-
$
65.64
(1) Depreciation, depletion and amortization - production excludes the depreciation, depletion and amortization related to selling, general and administrative functions.
Three Months Ended December 31, 2020
(In thousands, except for per ton data)
Met
CAPP - Thermal
All Other
Consolidated
Coal revenues
$
289,756
$
33,604
$
-
$
323,360
Less: Total Cost of coal sales (per table above)
(284,707)
(31,753)
7,590
(308,870)
GAAP Coal margin
$
5,049
$
1,851
$
7,590
$
14,490
Tons sold
3,210
536
-
3,746
GAAP Coal margin per ton
$
1.57
$
3.45
$
-
$
3.87
GAAP Coal margin
$
5,049
$
1,851
$
7,590
$
14,490
Add: Depreciation, depletion and amortization - production (1)
2,381
1,031
(7,680)
(4,268)
Add: Accretion on asset retirement obligations
3,328
2,259
972
6,559
Add: Amortization of acquired intangibles, net
5,014
(291)
25
4,748
Add: Idled and closed mine costs
3,445
3,543
(845)
6,143
Non-GAAP Coal margin
$
19,217
$
8,393
$
62
$
27,672
Tons sold
3,210
536
-
3,746
Non-GAAP Coal margin per ton
$
5.99
$
15.66
$
-
$
7.39
(1) Depreciation, depletion and amortization - production excludes the depreciation, depletion and amortization related to selling, general and administrative functions.
Three Months Ended December 31, 2019
(In thousands, except for per ton data)
Met
CAPP - Thermal
All Other
Consolidated
Coal revenues
$
370,200
$
60,576
$
681
$
431,457
Less: Freight and handling fulfillment revenues
(59,320)
(10,450)
-
(69,770)
Non-GAAP Coal revenues
$
310,880
$
50,126
$
681
$
361,687
Tons sold
3,273
893
8
4,174
Non-GAAP Coal sales realization per ton
$
94.98
$
56.13
$
85.13
$
86.65
Cost of coal sales (exclusive of items shown separately below)
$
331,395
$
55,653
$
(48)
$
387,000
Depreciation, depletion and amortization - production (1)
39,122
12,897
(2,165)
49,854
Accretion on asset retirement obligations
2,613
3,528
849
6,990
Amortization of acquired intangibles, net
4,574
(1,437)
-
3,137
Total Cost of coal sales
$
377,704
$
70,641
$
(1,364)
$
446,981
Less: Freight and handling costs
(59,320)
(10,450)
-
(69,770)
Less: Depreciation, depletion and amortization - production (1)
(39,122)
(12,897)
2,165
(49,854)
Less: Accretion on asset retirement obligations
(2,613)
(3,528)
(849)
(6,990)
Less: Amortization of acquired intangibles, net
(4,574)
1,437
-
(3,137)
Less: Idled and closed mine costs
(2,757)
(1,260)
713
(3,304)
Non-GAAP Cost of coal sales
$
269,318
$
43,943
$
665
$
313,926
Tons sold
3,273
893
8
4,174
Non-GAAP Cost of coal sales per ton
$
82.28
$
49.21
$
83.13
$
75.21
(1) Depreciation, depletion and amortization - production excludes the depreciation, depletion and amortization related to selling, general and administrative functions.
Three Months Ended December 31, 2019
(In thousands, except for per ton data)
Met
CAPP - Thermal
All Other
Consolidated
Coal revenues
$
370,200
$
60,576
$
681
$
431,457
Less: Total Cost of coal sales (per table above)
(377,704)
(70,641)
1,364
(446,981)
GAAP Coal margin
$
(7,504)
$
(10,065)
$
2,045
$
(15,524)
Tons sold
3,273
893
8
4,174
GAAP Coal margin per ton
$
(2.29)
$
(11.27)
$
255.63
$
(3.72)
GAAP Coal margin
$
(7,504)
$
(10,065)
$
2,045
$
(15,524)
Add: Depreciation, depletion and amortization - production (1)
39,122
12,897
(2,165)
49,854
Add: Accretion on asset retirement obligations
2,613
3,528
849
6,990
Add: Amortization of acquired intangibles, net
4,574
(1,437)
-
3,137
Add: Idled and closed mine costs
2,757
1,260
(713)
3,304
Non-GAAP Coal margin
$
41,562
$
6,183
$
16
$
47,761
Tons sold
3,273
893
8
4,174
Non-GAAP Coal margin per ton
$
12.70
$
6.92
$
2.00
$
11.44
(1) Depreciation, depletion and amortization - production excludes the depreciation, depletion and amortization related to selling, general and administrative functions.
Year Ended December 31, 2020
(In thousands, except for per ton data)
Met
CAPP - Thermal
All Other
Consolidated
Coal revenues
$
1,263,855
$
148,880
$
389
$
1,413,124
Less: Freight and handling fulfillment revenues
(206,509)
(12,940)
-
(219,449)
Non-GAAP Coal revenues
$
1,057,346
$
135,940
$
389
$
1,193,675
Tons sold
13,070
2,437
6
15,513
Non-GAAP Coal sales realization per ton
$
80.90
$
55.78
$
64.83
$
76.95
Cost of coal sales (exclusive of items shown separately below)
$
1,140,556
$
136,944
$
3,511
$
1,281,011
Depreciation, depletion and amortization - production (1)
124,060
20,453
(5,885)
138,628
Accretion on asset retirement obligations
14,214
9,285
3,005
26,504
Amortization of acquired intangibles, net
12,889
(3,775)
100
9,214
Total Cost of coal sales
$
1,291,719
$
162,907
$
731
$
1,455,357
Less: Freight and handling costs
(206,509)
(12,940)
-
(219,449)
Less: Depreciation, depletion and amortization - production (1)
(124,060)
(20,453)
5,885
(138,628)
Less: Accretion on asset retirement obligations
(14,214)
(9,285)
(3,005)
(26,504)
Less: Amortization of acquired intangibles, net
(12,889)
3,775
(100)
(9,214)
Less: Idled and closed mine costs
(16,640)
(8,973)
(3,267)
(28,880)
Non-GAAP Cost of coal sales
$
917,407
$
115,031
$
244
$
1,032,682
Tons sold
13,070
2,437
6
15,513
Non-GAAP Cost of coal sales per ton
$
70.19
$
47.20
$
40.67
$
66.57
(1) Depreciation, depletion and amortization - production excludes the depreciation, depletion and amortization related to selling, general and administrative functions.
Year Ended December 31, 2020
(In thousands, except for per ton data)
Met
CAPP - Thermal
All Other
Consolidated
Coal revenues
$
1,263,855
$
148,880
$
389
$
1,413,124
Less: Total Cost of coal sales (per table above)
(1,291,719)
(162,907)
(731)
(1,455,357)
GAAP Coal margin
$
(27,864)
$
(14,027)
$
(342)
$
(42,233)
Tons sold
13,070
2,437
6
15,513
GAAP Coal margin per ton
$
(2.13)
$
(5.76)
$
(57.00)
$
(2.72)
GAAP Coal margin
$
(27,864)
$
(14,027)
$
(342)
$
(42,233)
Add: Depreciation, depletion and amortization - production (1)
124,060
20,453
(5,885)
138,628
Add: Accretion on asset retirement obligations
14,214
9,285
3,005
26,504
Add: Amortization of acquired intangibles, net
12,889
(3,775)
100
9,214
Add: Idled and closed mine costs
16,640
8,973
3,267
28,880
Non-GAAP Coal margin
$
139,939
$
20,909
$
145
$
160,993
Tons sold
13,070
2,437
6
15,513
Non-GAAP Coal margin per ton
$
10.71
$
8.58
$
24.17
$
10.38
(1) Depreciation, depletion and amortization - production excludes the depreciation, depletion and amortization related to selling, general and administrative functions.
Year Ended December 31, 2019
(In thousands, except for per ton data)
Met
CAPP - Thermal
All Other
Consolidated
Coal revenues
$
1,709,863
$
285,390
$
681
$
1,995,934
Less: Freight and handling fulfillment revenues
(242,049)
(34,133)
-
(276,182)
Non-GAAP Coal revenues
$
1,467,814
$
251,257
$
681
$
1,719,752
Tons sold
12,926
4,218
8
17,152
Non-GAAP Coal sales realization per ton
$
113.56
$
59.57
$
85.13
$
100.27
Cost of coal sales (exclusive of items shown separately below)
$
1,389,619
$
274,320
$
3,829
$
1,667,768
Depreciation, depletion and amortization - production (1)
152,835
57,483
4,025
214,343
Accretion on asset retirement obligations
9,599
10,929
3,337
23,865
Amortization of acquired intangibles, net
10,389
(13,578)
-
(3,189)
Total Cost of coal sales
$
1,562,442
$
329,154
$
11,191
$
1,902,787
Less: Freight and handling costs
(242,049)
(34,133)
-
(276,182)
Less: Depreciation, depletion and amortization - production (1)
(152,835)
(57,483)
(4,025)
(214,343)
Less: Accretion on asset retirement obligations
(9,599)
(10,929)
(3,337)
(23,865)
Less: Amortization of acquired intangibles, net
(10,389)
13,578
-
3,189
Less: Idled and closed mine costs
(8,699)
(2,702)
(3,164)
(14,565)
Less: Cost impact of coal inventory fair value adjustment (2)
(4,751)
(3,458)
-
(8,209)
Non-GAAP Cost of coal sales
$
1,134,120
$
234,027
$
665
$
1,368,812
Tons sold
12,926
4,218
8
17,152
Non-GAAP Cost of coal sales per ton
$
87.74
$
55.48
$
83.13
$
79.80
(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 Merger was completed during the three months ended June 30, 2019.
Year Ended December 31, 2019
(In thousands, except for per ton data)
Met
CAPP - Thermal
All Other
Consolidated
Coal revenues
$
1,709,863
$
285,390
$
681
$
1,995,934
Less: Total Cost of coal sales (per table above)
(1,562,442)
(329,154)
(11,191)
(1,902,787)
GAAP Coal margin
$
147,421
$
(43,764)
$
(10,510)
$
93,147
Tons sold
12,926
4,218
8
17,152
GAAP Coal margin per ton
$
11.40
$
(10.38)
$
(1,313.75)
$
5.43
GAAP Coal margin
$
147,421
$
(43,764)
$
(10,510)
$
93,147
Add: Depreciation, depletion and amortization - production (1)
152,835
57,483
4,025
214,343
Add: Accretion on asset retirement obligations
9,599
10,929
3,337
23,865
Add: Amortization of acquired intangibles, net
10,389
(13,578)
-
(3,189)
Add: Idled and closed mine costs
8,699
2,702
3,164
14,565
Add: Cost impact of coal inventory fair value adjustment (2)
4,751
3,458
-
8,209
Non-GAAP Coal margin
$
333,694
$
17,230
$
16
$
350,940
Tons sold
12,926
4,218
8
17,152
Non-GAAP Coal margin per ton
$
25.82
$
4.08
$
2.00
$
20.46
(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 Merger was completed during the three months ended June 30, 2019.
Three Months Ended September 30, 2020
(In thousands, except for per ton data)
Met
CAPP - Thermal
All Other
Consolidated
Non-GAAP Cost of coal sales
$
221,415
$
29,242
$
(7)
$
250,650
Less: cost of purchased coal sold
(12,511)
70
-
(12,441)
Adjusted cost of produced coal sold
$
208,904
$
29,312
$
(7)
$
238,209
Produced tons sold
3,142
636
-
3,778
Adjusted cost of produced coal sold per ton (1)
$
66.49
$
46.09
$
-
$
63.05
(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, 2020
(In thousands, except for per ton data)
Met
CAPP - Thermal
All Other
Consolidated
Non-GAAP Cost of coal sales
$
222,288
$
23,663
$
(62)
$
245,889
Less: cost of purchased coal sold
(19,993)
(93)
-
(20,086)
Adjusted cost of produced coal sold
$
202,295
$
23,570
$
(62)
$
225,803
Produced tons sold
2,939
535
-
3,474
Adjusted cost of produced coal sold per ton (1)
$
68.83
$
44.06
$
-
$
65.00
(1) Cost of produced coal sold per ton for our operations is calculated as non-GAAP cost of produced coal sold divided by produced tons sold.
Three Months Ended December 31, 2019
(In thousands, except for per ton data)
Met
CAPP - Thermal
All Other
Consolidated
Non-GAAP Cost of coal sales
$
269,318
$
43,943
$
665
$
313,926
Less: cost of purchased coal sold
(43,091)
(598)
-
(43,689)
Adjusted cost of produced coal sold
$
226,227
$
43,345
$
665
$
270,237
Produced tons sold
2,779
876
8
3,663
Adjusted cost of produced coal sold per ton (1)
$
81.41
$
49.48
$
83.13
$
73.77
(1) Cost of produced coal sold per ton for our operations is calculated as non-GAAP cost of produced coal sold divided by produced tons sold.
Year Ended December 31, 2020
(In thousands, except for per ton data)
Met
CAPP - Thermal
All Other
Consolidated
Non-GAAP Cost of coal sales
$
917,407
$
115,031
$
244
$
1,032,682
Less: cost of purchased coal sold
(85,769)
(925)
-
(86,694)
Adjusted cost of produced coal sold
$
831,638
$
114,106
$
244
$
945,988
Produced tons sold
11,941
2,423
6
14,370
Adjusted cost of produced coal sold per ton (1)
$
69.65
$
47.09
$
40.67
$
65.83
(1) Cost of produced coal sold per ton for our operations is calculated as non-GAAP cost of produced coal sold divided by produced tons sold.
Year Ended December 31, 2019
(In thousands, except for per ton data)
Met
CAPP - Thermal
All Other
Consolidated
Non-GAAP Cost of coal sales
$
1,134,120
$
234,027
$
665
$
1,368,812
Less: cost of purchased coal sold
(237,681)
(6,976)
-
(244,657)
Adjusted cost of produced coal sold
$
896,439
$
227,051
$
665
$
1,124,155
Produced tons sold
10,727
4,091
8
14,826
Adjusted cost of produced coal sold per ton (1)
$
83.57
$
55.50
$
83.13
$
75.82
(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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