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8-K - FORM 8-K - Patriot Coal CORP | c62738e8vk.htm |
Exhibit 99.1
NEWS RELEASE
|
||
CONTACT: | ||
Janine Orf | ||
(314) 275-3680 | ||
jorf@patriotcoal.com |
FOR IMMEDIATE RELEASE
PATRIOT COAL ANNOUNCES RESULTS
FOR THE QUARTER AND YEAR ENDED DECEMBER 31, 2010
FOR THE QUARTER AND YEAR ENDED DECEMBER 31, 2010
Summary:
| Fourth quarter EBITDA of $42.8 million, up 32 percent over the prior year | ||
| Full year EBITDA of $141.9 million, up 28 percent over the prior year | ||
| Increasing metallurgical production to over 8 million tons in 2011, with expansion to over 11 million tons by 2013 | ||
| More than 2 million tons of new met coal sales for 2011 delivery, with 3.0 to 3.4 million tons remaining to be priced | ||
| Nearly 1 million tons of thermal coal sold to export markets, sourced from three coal basins |
ST. LOUIS, February 1 Patriot Coal Corporation (NYSE: PCX) today reported its financial
results for the quarter and year ended December 31, 2010. The Company reported revenues of $528.2
million, EBITDA of $42.8 million, net income of $7.3 million and net income per diluted share of
$0.08 for the 2010 fourth quarter. For the 2010 year, the Company reported revenues of $2.0
billion, EBITDA of $141.9 million, net loss of $48.0 million and loss per share of $0.53. EBITDA
for the fourth quarter and the full year of 2010 increased 32 percent and 28 percent, respectively,
compared with 2009.
This past year was one of building strength at Patriot in anticipation of improving global
economies and markets. We emphasized the re-engineering of both surface and underground mines to
address increased regulatory oversight. At the same time, we focused on increased met production
and are now on a path to produce more than 11 million tons of metallurgical coal
by 2013, noted Patriot President and Chief Executive Officer Richard M. Whiting. This strategic
growth, coupled with significantly higher margins on thermal business following the roll-off of two
legacy sales contracts in the next two years, gives Patriot tremendous potential for earnings
expansion.
1
In recent months, we have booked more than 2 million tons of new met coal sales for 2011
delivery at prices substantially higher than those realized in 2010. And we have more than 3
million tons of met production for delivery in 2011 remaining to be priced, continued Whiting.
We also took advantage of stronger European thermal markets in the fourth quarter, booking nearly
1 million tons of thermal export sales for 2011 delivery.
Commenting on the fourth quarter, Patriot Senior Vice President and Chief Financial Officer
Mark N. Schroeder noted, As a result of solid production across nearly all mining complexes, we
recognized EBITDA of $42.8 million. The higher EBITDA resulted from higher average selling prices,
as well as improved operating costs per ton compared with our 2010 third quarter. In total, fourth
quarter production across our complexes was almost 400,000 tons higher than the 2010 third quarter.
In particular, production at our Federal mine exceeded 1.1 million tons this quarter, over 250,000
tons above the third quarter. And production at our Wells metallurgical complex was up more than
100,000 tons in the fourth quarter.
Looking forward, we expect to move the Panther longwall only once in 2011 in the second
quarter so we anticipate steadier production at this metallurgical coal complex, continued
Schroeder. Stronger performance at Panther, full production at the new Black Oak mine by
mid-year, and the start-up of additional metallurgical mines are expected to result in met coal
output of more than 8 million tons in 2011 and 9 million tons in 2012. This compares with the 6.9
million tons of met coal sold in 2010. These planned expansions require relatively low capital
investment, as they will use incremental capacity at existing facilities.
Financial Overview
Revenues in the 2010 fourth quarter were $528.2 million, compared with $503.2 million in the
prior year quarter. Higher revenues in the 2010 quarter compared with the prior year largely
resulted from higher average selling prices, partially offset by lower sales volume. Revenues for
2010 of $2.0 billion were comparable with 2009.
Sales in the fourth quarter totaled 7.7 million tons, including 6.0 million tons of thermal
and 1.7 million tons of metallurgical coal. Total sales were lower than the 8.3 million tons sold
in the fourth quarter of 2009, which included 6.7 million tons of thermal and 1.6 million tons of
metallurgical coal. Lower sales compared with the year-ago quarter were due to the continuing
impact of higher regulatory oversight in 2010, as well as transport constraints late in the
quarter. Compared with the 2010 third quarter, sales volume was 0.2 million tons higher in the
fourth quarter, primarily a result of improved production at the Federal mine, as well as a 0.1
million ton increase in metallurgical coal sales. Full-year 2010 sales volume was 30.9 million
tons, compared with 32.8 million tons in 2009.
2
EBITDA in the 2010 fourth quarter was $42.8 million, compared with $32.5 million in the same
quarter of 2009. Higher EBITDA was driven by higher average selling prices, partially offset by
lower sales volume. EBITDA for 2010 totaling $141.9 million was $31.1 million, or 28 percent,
higher than EBITDA reported in 2009. Higher EBITDA in 2010 resulted primarily from higher average
selling prices.
Operating cost per ton totaled $55.70 in the 2010 fourth quarter, compared with $50.86 in the
prior year fourth quarter. Increased cost per ton in the 2010 quarter was primarily due to lower
production, in part associated with increased regulatory oversight. Compared with the 2010 third
quarter, operating cost per ton improved $2.65, largely as a result of the sequential increase in
volume. Higher production at the Federal, Rocklick and Highland complexes drove the increased
volume in the fourth quarter compared with the third quarter. For the 2010 full year, operating
cost per ton was $55.49, compared with $52.92 in 2009. Cost per ton increased only 5 percent
year-over-year, even with the significant increase in regulatory oversight, various operational
challenges and higher met coal volume in 2010.
Accretion related to shipments on below-market sales and purchase contracts obtained in the
Magnum Coal acquisition in July 2008 totaled $31.5 million in the fourth quarter of 2010, compared
with $66.1 million in the prior year. Lower accretion in 2010 resulted because certain contracts
acquired with Magnum expired at the end of 2009, and the associated accretion was fully recognized
by that time. Sales contract accretion is expected to be significantly lower in 2011, totaling
approximately $50 million, as underlying contracts continue to expire.
Credit and Capital
As of December 31, 2010, Patriot had a cash balance of $193.1 million and no borrowings on its
revolving credit facility or its receivables securitization program. Available liquidity was just
under $400 million at December 31, 2010.
Capital expenditures totaled $28.4 million in the 2010 fourth quarter and $123.0 million for
the full year. For 2011, the Company expects capital expenditures to be in the range of $150 to
$175 million, as Patriot continues its metallurgical coal expansion.
3
Safety
During the quarter, the Patriot Surface Mine received a Surface Safety Award from the Kentucky
Department for Natural Resources, adding to the Sentinels of Safety and numerous other awards
received during 2010. The Companys accident rate declined again in 2010, making it the safest year
in Patriots history and the fourth consecutive decline since becoming a public company in 2007.
Patriot continues to work constructively with the Mine Safety and Health Administration to
improve safety processes and equipment at its mines. In some instances, changes resulted in days
or weeks of lost production during the year, as new approaches and programs were implemented. The
Company remains committed to working with MSHA and state agencies to ensure continuous improvement
in safety and compliance programs.
Market Overview
Patriot has participated in the robust metallurgical and improved thermal coal markets by
adding new business that will significantly increase earnings during the second half of 2011, while
also reserving a significant portion of production for pricing as the year progresses. The Company
anticipates that markets will remain strong throughout 2011, given continued growth in economies
around the world. Patriot enjoys a strong metallurgical coal reserve base that can be developed
with both incremental and large-scale projects to serve growing customer needs.
The structural shortage in metallurgical coal is expected to continue for at least the next
few years, as a result of limited supply in established coal basins, coupled with long lead-times
to bring on significant production in new basins, continued Whiting. Patriot is moving forward
with the financial commitments to expand our met output from 6.9 million tons in 2010 to 11 million
tons by 2013. To fulfill the met coal needs of Patriots customers, our plans call for opening a
number of new mines during the next two years. These met mines are located within the existing
Rocklick, Wells, Kanawha Eagle and Logan County complexes.
The API2 forward price curve has increased more than $10 per metric tonne since October. As
a result, Appalachian thermal coal can now be exported into the prompt European market at more
favorable margins than if sold domestically. We believe this is an indication of the continuing
globalization of thermal markets, following the same direction as met markets in recent years,
stated Whiting. The meaningful thermal business Patriot has booked for 2011 export to Europe
includes shipments from all three of the basins where we operate. Against the backdrop of growing
Pacific Rim demand, this is a very positive sign for prospects in the Atlantic market.
4
The global increase in metallurgical and thermal coal demand is occurring while the Western
economies have not yet fully rebounded, noted Whiting. Moving forward, it is unclear how
worldwide coal supply will keep pace with demand.
Naturally, we are allocating our capital to projects we believe will realize the highest
margins. Therefore, most of our capital is aimed at met production, concluded Whiting. As a
reminder, we also expect our thermal business to yield substantially higher margins in coming years
as two significant underwater legacy contracts covering 6.5 million tons expire. Re-pricing these
two contracts at todays more favorable levels would yield incremental EBITDA in excess of $150
million in 2013, after improving 2012 by almost $50 million.
Outlook
For 2011, the Company currently anticipates sales volume in the range of 30 to 32 million
tons. This includes metallurgical coal sales of 8.0 to 8.4 million tons, a meaningful increase
over the 6.9 million tons sold in 2010. Based on this volume, cost per ton is expected to be in
the range of $63 to $67 for the Appalachia segment, reflecting the higher met production and
transition to several new mines. Cost per ton for the Illinois Basin segment is expected to be in
the $40 to $43 range.
Since our last earnings call, we have booked slightly more than 2 million tons of
metallurgical coal at an average selling price of about $135 per ton. Much of this business was
signed prior to the end of the fourth quarter, added Schroeder. Also included in this new
business are about 500,000 tons of met coal booked in January following the extreme weather
conditions in Australia. These more recent contracts are at an average price of approximately $155
per ton at the mine. Following these sales, we have 3.0 to 3.4 million tons of met coal for 2011
delivery remaining to be priced in todays stronger market, more than half of which are our higher
quality met coal.
Additionally, we booked around 2 million tons of thermal business during the quarter,
concluded Schroeder. Following these sales, we have just under 2 million tons of Appalachia
thermal coal remaining unpriced and just under 1 million tons of Illinois Basin coal remaining
unpriced for 2011 delivery.
5
Average selling prices of currently priced tons for 2011 and 2012 are as follows:
(Tons in millions) | 2011 | 2012 | ||||||||||||||
Tons | Price per ton | Tons | Price per ton | |||||||||||||
Appalachia thermal |
14.0 | $ | 59 | 7.7 | $ | 57 | ||||||||||
Illinois Basin thermal |
6.8 | $ | 40 | 1.8 | $ | 49 | ||||||||||
Appalachia met |
5.0 | $ | 127 | 0.0 | NA | |||||||||||
Total |
25.8 | 9.5 | ||||||||||||||
Priced thermal business for 2011 and 2012 includes 8.3 million tons and 4.7 million tons,
respectively, related to legacy contracts priced significantly below the current market.
Conference Call
Management will hold a conference call to discuss the fourth quarter results on February 1,
2011, at 10:00 a.m. Central Time. The conference call can be accessed by dialing 800-230-1766, or
through the Patriot Coal website at www.patriotcoal.com. International callers can dial
612-288-0337 to access the conference call. A replay of the conference call will be available on
the Companys website and also by telephone, at 800-475-6701 for domestic callers or 320-365-3844
for international callers, access code 188750.
About Patriot Coal
Patriot Coal Corporation is a leading producer and marketer of coal in the eastern United States,
with 14 current mining complexes in Appalachia and the Illinois Basin. The Company ships to
domestic and international electricity generators, industrial users and metallurgical coal
customers, and controls approximately 1.8 billion tons of proven and probable coal reserves. The
Companys common stock trades on the New York Stock Exchange under the symbol PCX.
Forward-Looking Statements
Certain statements in this press release are forward-looking as defined in the Private Securities
Litigation Reform Act of 1995. These statements involve certain risks and uncertainties that may
be beyond our control and may cause our actual future results to differ materially from
expectations. We do not undertake to update our forward-looking statements. Factors that could
affect our results include, but are not limited to: price volatility and demand, particularly in
higher margin products; geologic, equipment and operational risks associated with mining; changes
in general economic conditions, including coal and power market conditions; coal mining laws and
regulations; the availability and costs of competing energy resources; legislative and regulatory
developments; risks associated with environmental laws and
compliance, including selenium-related matters; developments in greenhouse gas emission regulation
and treatment; labor availability and relations; the outcome of pending or future litigation;
changes in the costs to provide healthcare to eligible active employees and certain retirees under
postretirement benefit obligations; changes in contribution requirements to multi-employer retiree
healthcare and pension funds; reductions of purchases or deferral of shipments by major customers;
availability and costs of credit; customer performance and credit risks; inflationary trends;
worldwide economic and political conditions; downturns in consumer and company spending; supplier
and contract miner performance and the availability and cost of key equipment and commodities;
availability and costs of transportation; the Companys ability to replace coal reserves; the
outcome of commercial negotiations involving sales contracts or other transactions; our ability to
respond to changing customer preferences; failure to comply with debt covenants; the effects of
mergers, acquisitions and divestitures; and weather patterns affecting energy demand. The Company
undertakes no obligation (and expressly disclaims any such obligation) to publicly update or revise
any forward-looking statement, whether as a result of new information, future events or otherwise.
For additional information concerning factors that could cause actual results to materially differ
from those projected herein, please refer to the Companys Form 10-K and Form 10-Q reports.
# # # # #
6
Condensed Consolidated Statements of Operations (Unaudited)
For the Three Months Ended December 31, 2010 and 2009 and September 30, 2010
For the Three Months Ended December 31, 2010 and 2009 and September 30, 2010
(In thousands, except share and per share data)
Three Months Ended | ||||||||||||
December 31, | September 30, | December 31, | ||||||||||
2010 | 2010 | 2009 | ||||||||||
Tons sold |
7,720 | 7,483 | 8,275 | |||||||||
Revenues |
||||||||||||
Sales |
$ | 523,185 | $ | 496,271 | $ | 494,633 | ||||||
Other revenues |
4,994 | 4,412 | 8,529 | |||||||||
Total revenues |
528,179 | 500,683 | 503,162 | |||||||||
Costs and expenses |
||||||||||||
Operating costs and expenses |
478,842 | 484,168 | 460,886 | |||||||||
Depreciation, depletion and amortization |
43,330 | 44,782 | 49,590 | |||||||||
Reclamation and remediation obligation expense |
9,893 | 31,291 | 11,848 | |||||||||
Sales contract accretion |
(31,505 | ) | (30,927 | ) | (66,056 | ) | ||||||
Restructuring and impairment charge |
169 | 167 | 20,157 | |||||||||
Selling and administrative expenses |
13,953 | 10,323 | 13,214 | |||||||||
Net gain on disposal or exchange of assets |
(3,140 | ) | (3,531 | ) | (3,144 | ) | ||||||
Income from equity affiliates |
(4,293 | ) | (3,491 | ) | (323 | ) | ||||||
Operating profit (loss) |
20,930 | (32,099 | ) | 16,990 | ||||||||
Interest expense |
16,640 | 16,952 | 9,722 | |||||||||
Interest income |
(3,012 | ) | (3,128 | ) | (3,600 | ) | ||||||
Income (loss) before income taxes |
7,302 | (45,923 | ) | 10,868 | ||||||||
Income tax provision |
22 | 70 | | |||||||||
Net income (loss) |
$ | 7,280 | $ | (45,993 | ) | $ | 10,868 | |||||
Weighted average shares outstanding |
||||||||||||
Basic |
90,959,138 | 90,968,377 | 90,322,074 | |||||||||
Effect of dilutive securities |
877,072 | | 1,106,353 | |||||||||
Diluted |
91,836,210 | 90,968,377 | 91,428,427 | |||||||||
Earnings (loss) per share, basic and diluted |
||||||||||||
Basic |
$ | 0.08 | $ | (0.51 | ) | $ | 0.12 | |||||
Diluted |
$ | 0.08 | $ | (0.51 | ) | $ | 0.12 | |||||
EBITDA |
$ | 42,817 | $ | 13,214 | $ | 32,529 | ||||||
This information is intended to be reviewed in conjunction with the Companys filings with the
Securities and Exchange Commission.
Condensed Consolidated Statements of Operations
For the Year Ended December 31, 2010 and 2009
For the Year Ended December 31, 2010 and 2009
(In thousands, except share and per share data)
Year Ended December 31, | ||||||||
2010 | 2009 | |||||||
(Unaudited) | ||||||||
Tons sold |
30,864 | 32,836 | ||||||
Revenues |
||||||||
Sales |
$ | 2,017,464 | $ | 1,995,667 | ||||
Other revenues |
17,647 | 49,616 | ||||||
Total revenues |
2,035,111 | 2,045,283 | ||||||
Costs and expenses |
||||||||
Operating costs and expenses |
1,900,704 | 1,893,419 | ||||||
Depreciation, depletion and amortization |
188,074 | 205,339 | ||||||
Reclamation and remediation obligation expense |
63,034 | 35,116 | ||||||
Sales contract accretion |
(121,475 | ) | (298,572 | ) | ||||
Restructuring and impairment charge |
15,174 | 20,157 | ||||||
Selling and administrative expenses |
50,248 | 48,732 | ||||||
Net gain on disposal or exchange of assets |
(48,226 | ) | (7,215 | ) | ||||
Income from equity affiliates |
(9,476 | ) | (398 | ) | ||||
Operating profit (loss) |
(2,946 | ) | 148,705 | |||||
Interest expense |
57,419 | 38,108 | ||||||
Interest income |
(12,831 | ) | (16,646 | ) | ||||
Income (loss) before income taxes |
(47,534 | ) | 127,243 | |||||
Income tax provision |
492 | | ||||||
Net income (loss) |
$ | (48,026 | ) | $ | 127,243 | |||
Weighted average shares outstanding |
||||||||
Basic |
90,907,264 | 84,660,998 | ||||||
Effect of dilutive securities |
| 763,504 | ||||||
Diluted |
90,907,264 | 85,424,502 | ||||||
Earnings (loss) per share, basic and diluted |
||||||||
Basic |
$ | (0.53 | ) | $ | 1.50 | |||
Diluted |
$ | (0.53 | ) | $ | 1.49 | |||
EBITDA |
$ | 141,861 | $ | 110,745 | ||||
This information is intended to be reviewed in conjunction with the Companys filings with the
Securities and Exchange Commission.
Supplemental Financial Data (Unaudited)
For the Three Months Ended December 31, 2010 and 2009 and September 30, 2010
For the Three Months Ended December 31, 2010 and 2009 and September 30, 2010
Three Months Ended | ||||||||||||
December 31, | September 30, | December 31, | ||||||||||
2010 | 2010 | 2009 | ||||||||||
Tons Sold (In thousands) |
||||||||||||
Appalachia Mining Operations |
6,011 | 5,985 | 6,589 | |||||||||
Illinois Basin Mining Operations |
1,709 | 1,498 | 1,686 | |||||||||
Total |
7,720 | 7,483 | 8,275 | |||||||||
Revenue Summary (Dollars in thousands) |
||||||||||||
Appalachia Mining Operations |
$ | 452,201 | $ | 434,048 | $ | 430,813 | ||||||
Illinois Basin Mining Operations |
70,984 | 62,223 | 63,820 | |||||||||
Appalachia Other |
4,994 | 4,412 | 8,529 | |||||||||
Total |
$ | 528,179 | $ | 500,683 | $ | 503,162 | ||||||
Revenues per Ton Mining Operations |
||||||||||||
Appalachia |
$ | 75.23 | $ | 72.52 | $ | 65.38 | ||||||
Illinois Basin |
41.54 | 41.54 | 37.85 | |||||||||
Total |
67.77 | 66.32 | 59.77 | |||||||||
Operating Costs per Ton Mining Operations (1) |
||||||||||||
Appalachia |
$ | 59.74 | $ | 61.87 | $ | 54.42 | ||||||
Illinois Basin |
41.48 | 44.27 | 36.91 | |||||||||
Total |
55.70 | 58.35 | 50.86 | |||||||||
Segment Adjusted EBITDA per Ton Mining
Operations |
||||||||||||
Appalachia |
$ | 15.49 | $ | 10.65 | $ | 10.96 | ||||||
Illinois Basin |
0.06 | (2.73 | ) | 0.94 | ||||||||
Total |
12.07 | 7.97 | 8.91 | |||||||||
Dollars in thousands |
||||||||||||
Past Mining Obligation Expense |
$ | 43,244 | $ | 42,551 | $ | 38,656 | ||||||
Capital Expenditures (Excludes Acquisitions) |
28,390 | 30,908 | 24,096 |
(1) | Operating costs are the direct costs of our mining operations, including income from equity affiliates, and excluding costs for past mining obligations, reclamation and remediation obligations, depreciation, depletion and amortization, restructuring and impairment charge and net sales contract accretion. |
This information is intended to be reviewed in conjunction with the Companys filings with the
Securities and Exchange Commission.
Supplemental Financial Data (Unaudited)
For the Year Ended December 31, 2010 and 2009
For the Year Ended December 31, 2010 and 2009
Year Ended December 31, | ||||||||
2010 | 2009 | |||||||
Tons Sold (In thousands) |
||||||||
Appalachia Mining Operations |
24,276 | 25,850 | ||||||
Illinois Basin Mining Operations |
6,588 | 6,986 | ||||||
Total |
30,864 | 32,836 | ||||||
Revenue Summary (Dollars in thousands) |
||||||||
Appalachia Mining Operations |
$ | 1,741,430 | $ | 1,726,588 | ||||
Illinois Basin Mining Operations |
276,034 | 269,079 | ||||||
Appalachia Other |
17,647 | 49,616 | ||||||
Total |
$ | 2,035,111 | $ | 2,045,283 | ||||
Revenues per Ton Mining Operations |
||||||||
Appalachia |
$ | 71.73 | $ | 66.79 | ||||
Illinois Basin |
41.90 | 38.52 | ||||||
Total |
65.37 | 60.78 | ||||||
Operating Costs per Ton Mining Operations (1) |
||||||||
Appalachia |
$ | 59.22 | $ | 57.13 | ||||
Illinois Basin |
41.70 | 37.30 | ||||||
Total |
55.49 | 52.92 | ||||||
Segment Adjusted EBITDA per Ton Mining
Operations |
||||||||
Appalachia |
$ | 12.51 | $ | 9.66 | ||||
Illinois Basin |
0.20 | 1.22 | ||||||
Total |
9.88 | 7.86 | ||||||
Dollars in thousands |
||||||||
Past Mining Obligation Expense |
$ | 173,736 | $ | 150,661 | ||||
Capital Expenditures (Excludes Acquisitions) |
122,989 | 78,263 |
(1) | Operating costs are the direct costs of our mining operations, including income from equity affiliates, and excluding costs for past mining obligations, reclamation and remediation obligations, depreciation, depletion and amortization, restructuring and impairment charge and net sales contract accretion. |
This information is intended to be reviewed in conjunction with the Companys filings with the
Securities and Exchange Commission.
Condensed
Consolidated Balance Sheets
December 31, 2010 and 2009
December 31, 2010 and 2009
(Dollars in thousands)
December 31, | ||||||||
2010 | 2009 | |||||||
(Unaudited) | ||||||||
Cash and cash equivalents |
$ | 193,067 | $ | 27,098 | ||||
Receivables |
207,365 | 188,897 | ||||||
Inventories |
97,973 | 81,188 | ||||||
Other current assets |
28,648 | 14,366 | ||||||
Total current assets |
527,053 | 311,549 | ||||||
Net property, plant, equipment and mine development |
3,160,535 | 3,161,254 | ||||||
Notes receivable |
69,540 | 109,137 | ||||||
Investments and other assets |
52,908 | 36,223 | ||||||
Total assets |
$ | 3,810,036 | $ | 3,618,163 | ||||
Current portion of debt |
$ | 3,329 | $ | 8,042 | ||||
Accounts payable and accrued liabilities |
409,284 | 406,351 | ||||||
Below market sales contracts acquired |
70,917 | 150,441 | ||||||
Total current liabilities |
483,530 | 564,834 | ||||||
Long-term debt, less current maturities |
451,529 | 197,951 | ||||||
Below market sales contracts acquired, noncurrent |
92,253 | 156,120 | ||||||
Other noncurrent liabilities |
1,939,643 | 1,763,764 | ||||||
Total liabilities |
2,966,955 | 2,682,669 | ||||||
Common stock, paid-in capital and retained earnings |
1,150,776 | 1,184,670 | ||||||
Accumulated other comprehensive loss |
(307,695 | ) | (249,176 | ) | ||||
Total stockholders equity |
843,081 | 935,494 | ||||||
Total liabilities and stockholders equity |
$ | 3,810,036 | $ | 3,618,163 | ||||
This information is intended to be reviewed in conjunction with the Companys filings with the
Securities and Exchange Commission.
Condensed
Consolidated Statements of Cash Flows
For the Year Ended December 31, 2010 and 2009
For the Year Ended December 31, 2010 and 2009
(Dollars in thousands)
Year Ended December 31, | ||||||||
2010 | 2009 | |||||||
(Unaudited) | ||||||||
Cash Flows from Operating Activities |
||||||||
Net income (loss) |
$ | (48,026 | ) | $ | 127,243 | |||
Adjustments to reconcile net income (loss) to net cash |
||||||||
provided by operating activities: |
||||||||
Depreciation, depletion and amortization |
188,074 | 205,339 | ||||||
Sales contract accretion |
(121,475 | ) | (298,572 | ) | ||||
Net gain on disposal or exchange of assets |
(48,226 | ) | (7,215 | ) | ||||
Impairment charge |
2,823 | 12,949 | ||||||
Changes in working capital and other |
63,141 | (133 | ) | |||||
Net cash provided by operating activities |
36,311 | 39,611 | ||||||
Cash Flows from Investing Activities |
||||||||
Additions to property, plant, equipment and mine development |
(122,989 | ) | (78,263 | ) | ||||
Additions to advance mining royalties |
(21,510 | ) | (16,997 | ) | ||||
Investment in joint venture |
(300 | ) | | |||||
Proceeds from notes receivable |
33,100 | 11,000 | ||||||
Proceeds from disposal or exchange of assets |
1,766 | 5,513 | ||||||
Other |
| 1,154 | ||||||
Net cash used in investing activities |
(109,933 | ) | (77,593 | ) | ||||
Cash Flows from Financing Activities |
||||||||
Proceeds from debt offering, net of discount |
248,198 | | ||||||
Proceeds from equity offering, net of costs |
| 89,077 | ||||||
Proceeds from coal reserve financing transaction |
17,700 | | ||||||
Short-term debt payments |
| (23,000 | ) | |||||
Long-term debt payments |
(8,042 | ) | (5,905 | ) | ||||
Deferred financing costs |
(20,740 | ) | | |||||
Proceeds from employee stock programs |
2,475 | 2,036 | ||||||
Net cash provided by financing activities |
239,591 | 62,208 | ||||||
Net increase in cash and cash equivalents |
165,969 | 24,226 | ||||||
Cash and cash equivalents at beginning of period |
27,098 | 2,872 | ||||||
Cash and cash equivalents at end of period |
$ | 193,067 | $ | 27,098 | ||||
This information is intended to be reviewed in conjunction with the Companys filings with the
Securities and Exchange Commission.
Reconciliation of Net Income (Loss) to EBITDA (Unaudited)
For the Three Months and Year Ended December 31, 2010 and 2009 and the Three Months Ended September 30, 2010
For the Three Months and Year Ended December 31, 2010 and 2009 and the Three Months Ended September 30, 2010
(Dollars in thousands)
Three Months Ended | ||||||||||||
December 31, | September 30, | December 31, | ||||||||||
Reconciliation of net income (loss) to EBITDA: | 2010 | 2010 | 2009 | |||||||||
Net income (loss) |
$ | 7,280 | $ | (45,993 | ) | $ | 10,868 | |||||
Depreciation, depletion and amortization |
43,330 | 44,782 | 49,590 | |||||||||
Reclamation and remediation obligation expense |
9,893 | 31,291 | 11,848 | |||||||||
Sales contract accretion, net |
(31,505 | ) | (30,927 | ) | (66,056 | ) | ||||||
Restructuring and impairment charge |
169 | 167 | 20,157 | |||||||||
Interest expense |
16,640 | 16,952 | 9,722 | |||||||||
Interest income |
(3,012 | ) | (3,128 | ) | (3,600 | ) | ||||||
Income tax provision |
22 | 70 | | |||||||||
EBITDA |
$ | 42,817 | $ | 13,214 | $ | 32,529 | ||||||
Year Ended December 31, | ||||||||
Reconciliation of net income (loss) to EBITDA: | 2010 | 2009 | ||||||
Net income (loss) |
$ | (48,026 | ) | $ | 127,243 | |||
Depreciation, depletion and amortization |
188,074 | 205,339 | ||||||
Reclamation and remediation obligation expense |
63,034 | 35,116 | ||||||
Sales contract accretion, net |
(121,475 | ) | (298,572 | ) | ||||
Restructuring and impairment charge |
15,174 | 20,157 | ||||||
Interest expense |
57,419 | 38,108 | ||||||
Interest income |
(12,831 | ) | (16,646 | ) | ||||
Income tax provision |
492 | | ||||||
EBITDA |
$ | 141,861 | $ | 110,745 | ||||
EBITDA is defined as net income before deducting interest income and expense, income taxes,
reclamation and remediation obligation expense, depreciation, depletion and amortization,
restructuring and impairment charge and net sales contract accretion. We have included information
concerning EBITDA because we believe that in our industry such information is a relevant
measurement of a companys operating financial performance. Because EBITDA is not calculated
identically by all companies, our calculation may not be comparable to similarly titled measures of
other companies. The table above reflects the Companys calculation of EBITDA.
This information is intended to be reviewed in conjunction with the Companys filings with the
Securities and Exchange Commission.