BRISTOL, Tenn., Nov. 27, 2017 /PRNewswire/ -- Contura Energy, Inc., a leading U.S. coal supplier, today reported results for the third quarter and year-to-date through September 30, 2017.

Highlights include:

  • Net Income of $10 million for the third quarter and $58 million for the year-to-date period
  • Adjusted EBITDA of $51 million for the third quarter and $255 million year-to-date
  • Paid $100.7 million in special dividend and equivalents in mid-July
  • Eliminated approximately $70 million (at face value) of acquisition-related contingent obligations
  • Extended tender offer expiration to December 15, 2017

 

(millions, except per share)       








Third Quarter
2017

Year to Date

2017

Coal revenues







$417.9

$1,367.6

Net Income







$10.2

$57.9

Net Income per diluted share







$0.93

$5.34

Adjusted EBITDA1







$50.7

$255.4

Operating cash flow







$73.2

$245.9

Capital expenditures







$20.9

$56.4

Tons of coal sold







12.8

36.7

"Despite some temporary production challenges due to difficult geology at our Cumberland longwall mine in Northern Appalachia, we remained focused this past quarter on operating safe, productive mines, growing our profitable Trading and Logistics segment, and delivering shareholder value through dividends and share buybacks," said Kevin Crutchfield, chief executive officer. "During the third quarter, we returned more than $100 million to our shareholders in the form of a special dividend and equivalent, and initiated a tender offer to repurchase up to $31.8 million of common stock. The company continues to pursue accretive shareholder actions."

_________________________
1 These are non-GAAP financial measures. A reconciliation of net loss to adjusted EBITDA is included in tables accompanying the financial schedules. Contura is modifying its Adjusted EBITDA calculation to add back accretion expense, a non-cash expense.

Financial Performance

  • Coal revenues in the third quarter were $417.9 million, with Central Appalachia (CAPP) accounting for $108.6 million and Trading and Logistics accounting for $144.9 million. On the thermal side, Northern Appalachia (NAPP) revenue totaled $65.7 million and the Powder River Basin (PRB) generated $98.8 million in coal sales. Freight and handling revenues and other revenues were $61.5 million and $3.5 million, respectively, in the third quarter.

    CAPP coal shipments for the third quarter were 1.0 million tons at an average per-ton realization of $105.86. Contura shipped 9.0 million tons of PRB coal during the quarter at an average per-ton realization of $11.02, while NAPP shipments totaled 1.5 million tons at an average per-ton realization of $44.57. NAPP volumes were reduced due to a roof fall at the Cumberland underground longwall mine in mid-September. Full production resumed in mid-October and the company believes the production issues have been successfully mitigated. In the Trading and Logistics segment, 1.3 million tons of coal were shipped at an average price of $112.48 per ton.

    For the year-to-date period through September 30, 2017, CAPP metallurgical coal shipments were 3.1 million tons at an average per-ton realization of $119.90. Contura shipped 24.5 million tons of PRB coal at an average per-ton realization of $10.94 through end of September, while NAPP shipments totaled 5.5 million tons at an average per-ton realization of $43.67. In the Trading and Logistics segment, 3.6 million tons of coal were shipped at an average price of $135.24 per ton.

  • Total costs and expenses during the third quarter were $469.3 million and cost of coal sales was $358.6 million. The cost of coal sales in CAPP for the quarter averaged $74.10 per ton, including $1.92 per ton in idle costs. NAPP costs at $44.54 per ton were elevated due to the aforementioned roof fall, which impacted production during the last two weeks of the quarter. NAPP costs included idle costs of $1.37 per ton. The cost of coal sales for the PRB mines was $9.77 per ton during the third quarter. In the Trading and Logistics segment, the cost of coal sales during the third quarter was $100.45 per ton.

    Total costs and expenses year-to-date were $1.44 billion and cost of coal sales was $1.09 billion. The cost of coal sales in CAPP averaged $74.06 per ton for the year-to-date period, while NAPP costs averaged $34.72 through the end of September. The cost of coal sales for the PRB mines for the same period was $10.02 per ton. In the Trading and Logistics segment, the cost of coal sales year-to-date was $116.77 per ton.

  • Selling, general and administrative (SG&A) expenses for the third quarter were $15.9 million, which includes approximately $5.0 million in non-cash stock compensation and $1.7 million of charges related to the company's incentive bonus plans. Depreciation, depletion and amortization was $15.2 million during the third quarter and amortization of acquired intangibles was $14.9 million.

    SG&A expenses for the year-to-date period were $56.1 million, which includes approximately $4.0 million of non-recurring expenses associated primarily with the company's filing of a registration statement with the Securities and Exchange Commission (SEC), approximately $11.3 million in stock compensation and approximately $5.1 million of charges related to the company's incentive bonus plans. The SG&A expenses also include approximately $9.1 million in expenses incurred in connection with the payout of the special dividend (in addition to $0.5 million of expenses recorded in cost of coal sales), comprised of $7.6 million of dividend equivalent payments and approximately $1.5 million of professional fees related to the special dividend. Approximately $1.5 million of business development expense is also included. Depreciation, depletion and amortization during the year-to-date period was $49.4 million and amortization of acquired intangibles was $49.1 million.

  • Contura recorded a net income of $10.2 million, or $0.93 per diluted share for the third quarter and $57.9 million, or $5.34 per diluted share year-to-date.

  • Adjusted EBITDA was $50.7 million for the quarter, excluding accretion expense of $5.5 million, secondary offering costs of $1.1 million and a $0.8 million mark-to-market adjustment for acquisition-related obligations. Adverse geologic conditions and the resulting roof fall at the Cumberland underground longwall mine in NAPP had an estimated third quarter EBITDA impact of approximately $18 million, compared to our expected results.

    Year-to-date, Adjusted EBITDA was $255.4 million, excluding a $38.7 million loss on early extinguishment of debt, $16.6 million accretion expense, $9.6 million expense related to the payout of the special dividend, $9.2 million gain on settlement of acquisition-related obligations, $4.5 million in secondary offering costs and a $3.2 million mark-to-market adjustment for acquisition related obligations. Contura is modifying its Adjusted EBITDA calculation to add back accretion expense, a non-cash expense, in order to conform with peer reporting methodology.

Liquidity and Capital Resources

Cash provided by operating activities for the third quarter and year-to-date were $73.2 million and $245.9 million, respectively. Capital expenditures for the third quarter and year-to-date were $20.9 million and $56.4 million, respectively.

At the end of September, Contura had $173.5 million in unrestricted cash. Total long-term debt, including the current portion of long-term debt as of September 30, 2017, was approximately $375.2 million.  At the end of September, the company had total liquidity of $287.2 million, including cash and cash equivalents of $173.5 million and $113.7 million unused commitments available under the Asset-Based Revolving Credit Facility.

During the third quarter, the company paid $100.7 million in special dividend and dividend equivalent payments. In September, Contura repurchased $17.4 million of its common stock shares at $56.40 per share. On November 6, 2017, the company extended to December 15, 2017 the expiration of its previously announced tender offer to repurchase an additional $31.8 million of its common stock.

Acquisition-related Liabilities Eliminated

Earlier this month, Contura also announced reduced liability obligations associated with its prior acquisition of certain core coal assets from Alpha Natural Resources on July 26, 2016. On October 24, 2017, Alpha announced the completion of a transaction with Lexington Coal Company (LCC), which included the transfer by Alpha to LCC of certain idle and non-active assets and other real and personal properties located in Kentucky, Tennessee and West Virginia. 

As a result of that transaction, Contura eliminated approximately $35 million of Contingent Reclamation Funding liabilities, which had already been reduced from a face value of $50 million at the time of the acquisition. In addition, the Contingent Credit Support Commitment, under which Contura provided to Alpha borrowing capacity of $35 million, was terminated. Lastly, approximately $2.8 million in cash was released from restricted cash to operating cash on Contura's balance sheet.

2017 Full-Year Guidance

Contura is maintaining its recently updated guidance. As previously announced, the company expects total shipments to be in the range of 45.2 to 49.4 million tons across all operations, including 3.7 to 4.1 million tons of captive CAPP coal and 30 to 33 million tons of PRB coal. Contura reduced its NAPP shipment guidance to 6.9 to 7.3 million tons, due to temporary production delays resulting from the previously referenced roof fall at its Cumberland underground longwall mine in Greene County, Pennsylvania. The company believes the issue has been successfully mitigated. Full production resumed at Cumberland in mid-October.  

In addition, total shipments through the company's Trading and Logistics segment are expected to be between 4.6 million and 5.0 million tons in 2017.

As of October 25, 2017, 85% of the midpoint of anticipated 2017 CAPP coal shipments were committed and priced at an average expected per-ton realization of $119.39, with the remaining 15% committed under an indexed pricing model. Based on the midpoint of guidance, 100% of anticipated 2017 NAPP steam coal shipments were committed and priced at an average expected per-ton realization of $43.79, and 99% of the midpoint of anticipated 2017 PRB shipments were committed and priced at an average expected per-ton realization of $10.92

Contura expects its 2017 CAPP cost of coal sales per ton to range from $72.00 to $74.00. PRB cost of coal sales per ton is estimated at a range of $9.50 to $10.50, and NAPP between $33.00 and $37.00 per ton due to the aforementioned production delay. Additionally, costs related to the company's idle operations are expected to be between $13 million and $15 million for full-year 2017.

Capital expenditures estimates for 2017 are in a range of $80 million to $90 million, while SG&A guidance is estimated at $35 million to $38 million, excluding one-time and non-recurring items. Depreciation, depletion and amortization for 2017 is expected to be between $60 million and $80 million. The company expects 2017 cash interest expense to be between $38 million and $41 million. The cash interest expense reflects $19.25 million of cash interest payments that occurred in 2017, of which $12.9 million were accrued in 2016. These secured Contura notes were refinanced in March 2017 with a lower cost term loan credit facility. The company expects fourth quarter cash interest expense at approximately the current run-rate of $6.25 million per quarter. 

 

in millions of tons

Low  

High  

CAPP

3.7

4.1

NAPP

6.9

7.3

PRB

30.0

33.0

Total Production

40.6

44.4




Contura Trading & Logistics

4.6

5.0




Total Shipments

45.2

49.4




Committed/Priced1,2,3

Committed

Average Price  

CAPP4

85%

$119.39

NAPP

100%

$43.79

PRB

99%

$10.92




Committed/Indexed1,3

Committed


CAPP4

15%





Costs per ton

Low  

High  

CAPP

$72.00

$74.00

NAPP

$33.00

$37.00

PRB

$9.50

$10.50




Margin per ton

Low  

High  

Contura Trading & Logistics

$12

$16




In millions (except taxes)

Low  

High  

SG&A5

$35

$38

Idle Operations Expense

$13

$15

Cash Interest Expense

$38

$41

DD&A

$60

$80

Capital Expenditures

$80

$90

Tax Rate

10%

20%

 

Notes:   

1.

Based on committed and priced coal shipments as of October 25, 2017. 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.

CAPP committed tons and price information represent captive Contura production and does not include Trading and Logistics.

5.

Excludes expenses related to the company's previous filing of a registration statement with the SEC, company formation expenses including non-cash stock compensation from formation-related stock plans, accrual of incentive bonus, costs associated with the special dividend, and non-recurring business development expenses.

 

Additional Information

For additional financial information about Contura, please visit www.conturaenergy.com/financials.

ABOUT CONTURA ENERGY

Contura Energy is a private, Tennessee-based, diversified coal supplier with affiliate mining operations across multiple major coal basins in Pennsylvania, Virginia, West Virginia and Wyoming. 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. You should review the risks and uncertainties discussed in the company's condensed consolidated financial statements and report for the period ended September 30, 2017, which are available on our website. Forward-looking statements in this news release or elsewhere speak only as of the date made. New uncertainties and risks arise from time to time, and it is impossible for Contura to predict these events or how they may affect Contura. Except as required by law, Contura has no duty to, and does not intend to, update or revise the forward-looking statements in this news release or elsewhere after the date this release is issued. In light of these risks and uncertainties, investors should keep in mind that results, events or developments discussed in any forward-looking statement made in this news release may not occur. 

INVESTOR CONTACT
investorrelations@conturaenergy.com

Alex Rotonen, CFA
423.573.0396

MEDIA CONTACTS
corporatecommunications@conturaenergy.com

Rick Axthelm
423.573.0304

Emily O'Quinn
423.573.0369

FINANCIAL TABLES FOLLOW

Use of Non-GAAP Measures

In addition to the results prepared in accordance with generally accepted accounting principles in the United States (GAAP) provided throughout this press release, Contura has presented the following non-GAAP financial measure: Adjusted EBITDA. The company uses Adjusted EBITDA to measure the operating performance of its segments and allocate resources to the segments. This non-GAAP financial measure excludes various items detailed in the attached reconciliation tables.

The definition of this non-GAAP measure may be changed periodically by management to adjust for significant items important to an understanding of operating trends. This measure is not intended to replace financial performance measures determined in accordance with GAAP. Rather, it is presented as a supplemental measure of the company's performance that management finds useful in assessing the company's financial performance and believes is useful to securities analysts, investors and others in assessing the company's performance over time. Moreover, this measure is not calculated identically by all companies and therefore may not be comparable to similarly titled measures used by other companies.

 

CONTURA ENERGY, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS AND

CONDENSED PREDECESSOR COMBINED STATEMENT OF OPERATIONS

(Amounts in thousands, except share and per share data)



Successor



Predecessor


Three Months
Ended
September 30,
2017


Nine Months
Ended
September 30,
2017


Period from
July 26, 2016 to
September 30,
2016



Period from
July 1, 2016 to
July 25, 2016


Period from
January 1,
2016 to July 25,
2016


Unaudited


Unaudited


Unaudited



Unaudited



Revenues:











Coal revenues

$

417,933



$

1,367,597



$

212,911




$

67,685



$

537,320


Freight and handling revenues

61,492



191,411



29,903




4,292



52,076


Other revenues

3,504



11,164



2,599




10,313



18,542


Total revenues

482,929



1,570,172



245,413




82,290



607,938


Costs and expenses:











Cost of coal sales (exclusive of items shown separately below)

358,620



1,087,828



178,396




55,446



489,652


Freight and handling costs

61,492



191,411



29,903




4,292



52,076


Other expenses

1,326



3,752



1,092




726



4,893


Depreciation, depletion and amortization

15,154



49,431



22,230




10,659



85,379


Amortization of acquired intangibles, net

14,868



49,111



23,562




11,104



11,567


Selling, general and administrative expenses (exclusive of depreciation, depletion and amortization shown separately above)

15,946



56,094



9,547




3,477



29,567


Asset impairment and restructuring








618



3,755


Secondary offering costs

1,061



4,499









Total other operating (income) loss:











Mark-to-market adjustment for acquisition-related obligations

839



3,221









Gain on settlement of acquisition-related obligations



(9,200)









Total costs and expenses

469,306



1,436,147



264,730




86,322



676,889


Income (loss) from operations

13,623



134,025



(19,317)




(4,032)



(68,951)


Other (expense) income:











Interest expense

(8,598)



(28,373)



(9,090)




(22)



(63)


Interest income

43



116



2




(22)



29


Loss on early extinguishment of debt



(38,701)









Equity loss in affiliates

(405)



(2,106)



(1,039)




(104)



(2,726)


Mark-to-market adjustment for warrant derivative liability





(16,552)







Bargain purchase gain

369



1,011









Miscellaneous income, net

51



278



201




9



683


Total other expense, net

(8,540)



(67,775)



(26,478)




(139)



(2,077)


Income (loss) before reorganization items and income taxes

5,083



66,250



(45,795)




(4,171)



(71,028)


Reorganization items, net








(4,773)



(31,073)


Income (loss) before income taxes

5,083



66,250



(45,795)




(8,944)



(102,101)


Income tax benefit (expense)

5,076



(8,369)



(1)




1,981



34,889


Net income (loss)

$

10,159



$

57,881



$

(45,796)




$

(6,963)



$

(67,212)


Basic income (loss) per common share

$

0.99



$

5.62



$

(4.44)







Diluted income (loss) per common share

$

0.93



$

5.34



$

(4.44)







Weighted average shares - basic

10,277,974



10,298,889



10,309,310







Weighted average shares - diluted

10,896,856



10,832,989



10,309,310







 

 

CONTURA ENERGY, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Amounts in thousands, except share and per share data)



Successor


September 30, 2017


December 31, 2016


(Unaudited)



Assets




Current assets:




Cash and cash equivalents

$

173,490



$

127,948


Trade accounts receivable, net of allowance for doubtful accounts of $0 as of September 30, 2017 and December 31, 2016

178,979



182,600


Inventories, net

61,866



75,399


Assets held for sale



1,714


Prepaid expenses and other current assets

55,370



37,555


Total current assets

469,705



425,216


Property, plant, and equipment, net

326,247



317,013


Other acquired intangibles (net of accumulated amortization of $110,962 and $61,851 as of September 30, 2017 and December 31, 2016, respectively)

38,038



87,149


Long-term restricted cash

57,364



43,341


Long-term deposits

17,153



55,501


Other non-current assets

23,570



18,532


Total assets

$

932,077



$

946,752


Liabilities and Stockholders' Equity




Current liabilities:




Current portion of long-term debt

$

8,420



$

2,324


Trade accounts payable

107,298



98,166


Acquisition-related obligations - current

19,545



27,258


Accrued expenses and other current liabilities

91,310



90,864


Total current liabilities

226,573



218,612


Long-term debt

366,789



346,837


Acquisition-related obligations - long-term

44,476



59,088


Asset retirement obligations

199,528



187,097


Other non-current liabilities

63,637



97,894


Total liabilities

901,003



909,528


Commitments and Contingencies




Stockholders' Equity




Preferred stock - par value $0.01, 2.0 million shares authorized, none issued




Common stock - par value $0.01, 20.0 million shares authorized, 10.8 million issued and 10.5 million outstanding at September 30, 2017 and 10.3 million issued and outstanding at December 31, 2016

108



103


Additional paid-in capital

37,236



45,964


Accumulated other comprehensive income

1,018



2,087


Treasury stock, at cost: 0.3 million shares at September 30, 2017 and none issued at December 31, 2016

(17,447)




Retained earnings (accumulated deficit)

10,159



(10,930)


Total stockholders' equity

31,074



37,224


Total liabilities and stockholders' equity

$

932,077



$

946,752


 

 

CONTURA ENERGY, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS AND

CONDENSED PREDECESSOR COMBINED STATEMENT OF CASH FLOWS

(Amounts in thousands)



Successor



Predecessor


Nine Months
Ended September
30, 2017


Period from
July 26, 2016 to
September 30,
2016



Period from
January 1, 2016
to July 25, 2016


Unaudited


Unaudited




Operating activities:







Net income (loss)

$

57,881



$

(45,796)




$

(67,212)


Adjustments to reconcile net income (loss) to net cash provided by operating activities:







Depreciation, depletion and amortization

49,431



22,230




85,379


Amortization of acquired intangibles, net

49,111



23,562




11,567


Accretion of acquisition-related obligations discount

5,954



2,633





Mark-to-market adjustment for acquisition-related obligations

3,221







Gain on settlement of acquisition-related obligations

(9,200)







Bargain purchase gain

(1,011)







Equity loss in affiliates

2,106



1,039




2,726


Mark-to-market adjustment for warrant derivative liability



16,552





Accretion of asset retirement obligations

16,573



4,569




12,422


Employee benefit plans, net

8,459



1,180




11,917


Deferred income taxes






(34,889)


Asset impairment and restructuring






3,755


Non-cash reorganization items, net






3,837


Non-cash loss on extinguishment of debt

13,665







Stock-based compensation

11,946



1,941




658


Other, net

1,616



216




254


Changes in operating assets and liabilities

36,157



6,361




30,276


Net cash provided by operating activities

245,909



34,487




60,690


Investing activities:







Capital expenditures

(56,403)



(12,773)




(23,433)


Proceeds from sale of property, plant and equipment

2,449



453




526


Capital contributions to equity affiliates

(4,160)



(870)




(2,122)


Cash acquired in acquisition



51,000





Purchase of additional ownership interest in equity affiliate

(13,293)







Other, net

(408)







Net cash (used in) provided by investing activities

(71,815)



37,810




(25,029)


Financing activities:







Proceeds from borrowings on debt

396,000







Principal repayments of debt

(368,500)







Principal repayments of capital lease obligations

(798)



(83)




(42)


Debt issuance costs

(14,385)







Debt extinguishment costs

(25,036)







Common stock repurchases

(17,445)







Debt amendment costs

(4,520)







Proceeds from exercise of warrants

11







Special dividend paid

(92,786)







Principal repayments of notes payable

(1,093)



(167)





Transfers to Alpha






(35,780)


Net cash used in financing activities

(128,552)



(250)




(35,822)


Net increase (decrease) in cash and cash equivalents

45,542



72,047




(161)


Cash and cash equivalents at beginning of period

127,948






269


Cash and cash equivalents at end of period

$

173,490



$

72,047




$

108









Supplemental cash flow information:







Cash paid for interest

$

34,091



$

127




$


Cash paid for income taxes

$

13,328



$




$


Supplemental disclosure of non-cash investing and financing activities:







Capital leases and capital financing - equipment

$

735



$

751




$


Accrued capital expenditures

$

9,169



$

6,374




$

13,376


Issuance of equity in connection with acquisition

$



$

44,644




$



 

 

CONTURA ENERGY, INC. AND SUBSIDIARIES

ADJUSTED EBITDA RECONCILIATION

(Amounts in thousands)


Reconciliation of Non-GAAP measures:



Successor


Three Months Ended September 30, 2017


CAPP


NAPP


PRB


Trading and
Logistics


All Other


Consolidated

Net income (loss)

$

30,238



$

(3,300)



$

3,724



$

613



$

(21,116)



$

10,159


Interest expense

1



(264)



132





8,729



8,598


Interest income

(3)









(40)



(43)


Income tax benefit









(5,076)



(5,076)


Depreciation, depletion and amortization

2,736



4,544



7,650





224



15,154


Mark-to-market adjustment - acquisition-related obligations









839



839


Secondary offering costs









1,061



1,061


Bargain purchase gain









(369)



(369)


Accretion expense

1,461



1,041



3,022







5,524


Amortization of acquired intangibles, net







14,868





14,868


Adjusted EBITDA (1)

$

34,433



$

2,021



$

14,528



$

15,481



$

(15,748)



$

50,715



 (1) Our Adjusted EBITDA calculation has been modified to add back accretion expense, a non-cash expense, to
     align with industry peer group methodology.



Segment Information:



Successor


Three Months Ended September 30, 2017


CAPP


NAPP


PRB


Trading and
Logistics


All Other


Consolidated

Total revenues

$

108,996



$

66,624



$

100,392



$

206,749



$

168



$

482,929


Depreciation, depletion, and amortization

$

2,736



$

4,544



$

7,650



$



$

224



$

15,154


Amortization of acquired intangibles, net

$



$



$



$

14,868



$



$

14,868


Adjusted EBITDA (1)

$

34,433



$

2,021



$

14,528



$

15,481



$

(15,748)



$

50,715


Capital expenditures

$

3,645



$

14,156



$

3,093



$



$



$

20,894



(1) Our Adjusted EBITDA calculation has been modified to add back accretion expense, a non-cash expense, to
     align with industry peer group methodology.

 

 

CONTURA ENERGY, INC. AND SUBSIDIARIES

ADJUSTED EBITDA RECONCILIATION

(Amounts in thousands)


Reconciliation of Non-GAAP measures:



Successor


Nine Months Ended September 30, 2017


CAPP


NAPP


PRB


Trading and
Logistics


All Other


Consolidated

Net income (loss)

$

128,584



$

41,855



$

(276)



$

17,203



$

(129,485)



$

57,881


Interest expense

(92)



(633)



293





28,805



28,373


Interest income

(8)









(108)



(116)


Income tax expense









8,369



8,369


Depreciation, depletion and amortization

13,447



11,206



24,139





639



49,431


Mark-to-market adjustment - acquisition-related obligations









3,221



3,221


Gain on settlement of acquisition-related obligations









(9,200)



(9,200)


Secondary offering costs









4,499



4,499


Loss on early extinguishment of debt









38,701



38,701


Bargain purchase gain









(1,011)



(1,011)


Accretion expense

4,384



3,123



9,066







16,573


Amortization of acquired intangibles, net







49,111





49,111


Expenses related to special dividend

377



57



67





9,102



9,603


Adjusted EBITDA (1)

$

146,692



$

55,608



$

33,289



$

66,314



$

(46,468)



$

255,435


(1) Our Adjusted EBITDA calculation has been modified to add back accretion expense, a non-cash expense, to
     align with industry peer group methodology.



Segment Information:



Successor


Nine Months Ended September 30, 2017


CAPP


NAPP


PRB


Trading and
Logistics


All Other


Consolidated

Total revenues

$

369,600



$

243,604



$

272,848



$

683,558



$

562



$

1,570,172


Depreciation, depletion, and
amortization

$

13,447



$

11,206



$

24,139



$



$

639



$

49,431


Amortization of acquired intangibles,
net

$



$



$



$

49,111



$



$

49,111


Adjusted EBITDA (1)

$

146,692



$

55,608



$

33,289



$

66,314



$

(46,468)



$

255,435


Capital expenditures

$

10,834



$

36,365



$

8,145



$



$

1,059



$

56,403


(1) Our Adjusted EBITDA calculation has been modified to add back accretion expense, a non-cash expense, to
     align with industry peer group methodology.

 

 

CONTURA ENERGY, INC. AND SUBSIDIARIES

RESULTS OF OPERATIONS

(Amounts in thousands, except per ton data)



Three Months Ended
September 30, 2017


% of Total
Revenues


Nine Months Ended
September 30, 2017


% of Total
Revenues

Revenues:








Coal revenues:








Steam

$

159,439



33.0

%


$

494,458



31.5

%

Met

258,494



53.5

%


873,139



55.6

%

Freight and handling revenues

61,492



12.8

%


191,411



12.2

%

Other revenues

3,504



0.7

%


11,164



0.7

%

Total revenues

$

482,929



100.0

%


$

1,570,172



100.0

%









Tons sold:








Steam

10,362





29,822




Met

2,389





6,855




Total

12,751





36,677












Coal sales realization per ton:








Steam

15.39





16.58




Met

108.20





127.37




Average

32.78





37.29







Three Months Ended
September 30, 2017


% of Total
Revenues


Nine Months Ended
September 30, 2017


% of Total
Revenues

Coal revenues (1):








CAPP Operations

$

108,611



22.5

%


$

368,586



23.5

%

NAPP Operations

65,699



13.6

%


240,700



15.3

%

PRB Operations

98,755



20.4

%


267,519



17.0

%

Trading and Logistics Operations

144,868



30.0

%


490,792



31.3

%

Total coal revenues

$

417,933



86.5

%


$

1,367,597



87.1

%

Tons sold:








CAPP Operations

1,026





3,074




NAPP Operations

1,474





5,512




PRB Operations

8,963





24,462




Trading and Logistics Operations

1,288





3,629












Coal sales realization per ton (1):








CAPP Operations

105.86





119.90




NAPP Operations

44.57





43.67




PRB Operations

11.02





10.94




Trading and Logistics Operations

112.48





135.24




Average

32.78





37.29




(1)   Does not include any portion of the price paid by our export customers to transport coal to the relevant
      outbound shipping port.

 

 

CONTURA ENERGY, INC. AND SUBSIDIARIES

RESULTS OF OPERATIONS

(Amounts in thousands, except per ton data)



Three Months
Ended September
30, 2017


% of Total
Revenues


Nine Months Ended
September 30, 2017


% of Total
Revenues

Cost of coal sales (exclusive of items shown separately below)

358,620



74.3

%


1,087,828



69.3

%

Freight and handling costs

61,492



12.7

%


191,411



12.2

%

Other expenses

1,326



0.3

%


3,752



0.2

%

Depreciation, depletion and amortization

15,154



3.1

%


49,431



3.1

%

Amortization of acquired intangibles, net

14,868



3.1

%


49,111



3.1

%

Selling, general and administrative expenses (exclusive of depreciation, depletion and amortization shown separately above)

15,946



3.3

%


56,094



3.6

%

Secondary offering costs

1,061



0.2

%


4,499



0.3

%

Total other operating (income) loss:








Mark-to-market adjustment for acquisition-related obligations

839



0.2

%


3,221



0.2

%

Gain (loss) on settlement of acquisition-related obligations



%


(9,200)



(0.6)

%

Total costs and expenses

$

469,306



97.2

%


$

1,436,147



91.5

%

Other (expense) income:








   Interest expense

(8,598)



(1.8)

%


(28,373)



(1.8)

%

   Interest income

43



%


116



%

   Loss on early extinguishment of debt



%


(38,701)



(2.5)

%

   Equity loss in affiliates

(405)



(0.1)

%


(2,106)



(0.1)

%

Bargain purchase gain

369



0.1

%


1,011



0.1

%

   Miscellaneous income, net

51



%


278



%

Total other expense, net

(8,540)



(1.8)

%


(67,775)



(4.3)

%

Income tax expense

5,076



1.1

%


(8,369)



(0.5)

%

Net income

$

10,159



2.1

%


$

57,881



3.7

%









Cost of coal sales:








CAPP Operations

76,027



15.7

%


227,672



14.5

%

NAPP Operations

65,645



13.6

%


191,357



12.2

%

PRB Operations

87,574



18.1

%


245,044



15.6

%

Trading and Logistics Operations

129,374



26.8

%


423,755



27.0

%









Tons sold:








CAPP Operations

1,026





3,074




NAPP Operations

1,474





5,512




PRB Operations

8,963





24,462




Trading and Logistics Operations

1,288





3,629












Cost of coal sales per ton:








CAPP Operations

74.10





74.06




NAPP Operations

44.54





34.72




PRB Operations

9.77





10.02




Trading and Logistics Operations

100.45





116.77












Coal margin per ton (1):








CAPP Operations

31.76





45.84




NAPP Operations

0.03





8.95




PRB Operations

1.25





0.92




Trading and Logistics Operations

12.03





18.47




(1)

Coal margin per ton for our reportable segments is calculated as coal sales realization per ton for our reportable segments less cost of coal sales per ton for our reportable segments. Coal margin per ton is not shown for our All Other category since it has no coal sales or coal production.

 

 

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SOURCE Contura Energy, Inc.


Source: Contura Energy, Inc.