Commercial Credit (CCR) Reports Q1 Revenues Below Estimates

Commercial Credit (NYSE: CCR) reported Q1 revenue for the quarter came in at $83.13 million versus the consensus estimate of $88.2 million.

• Cash distribution of $0.5125 per unit for the first quarter;
• Net income of $15.2 million;
• Adjusted EBITDA1 of $28.2 million;
• Distribution coverage ratio1 of 1.2x;
• Net leverage ratio1 of 1.5x;
• Extended the maturity of the Affiliated Company Credit Agreement with CONSOL Energy Inc. through 2024; and
• Extended a major export contract through the end of 2020; pricing terms unchanged.

Management Comments

"After a very strong finish to 2018, I am pleased to report that the CCR team continues to perform consistently well despite the fluctuations we've seen in the commodity markets we serve," said Jimmy Brock, Chief Executive Officer of CONSOL Coal Resources GP LLC, the general partner of the Partnership. "We continue to deliver consistent distribution levels to our unitholders while reducing risk through prudent balance sheet management. This quarter, we not only reduced our net leverage ratio, but with the support of our sponsor, we extended the maturity date of our Affiliated Company Credit Agreement through 2024. This extension provides us continued access to low-cost liquidity, which is becoming scarce in the master limited partnership space for companies of our size.

On the safety front, the PAMC employees improved their safety performance by 70% compared to the same period in 2018. The central preparation plant continued its strong safety performance with an incident-free quarter."

2019 Guidance and Outlook

Based on our year-to-date results, current contracted position, estimated prices and production plans, we are maintaining our financial and operating performance guidance for 2019.

• Coal sales volumes - 6.70-6.95 million tons
• Coal average revenue per ton - $47.70-$49.70
• Cash cost of coal sold per ton2 - $30.40-$31.40
• Adjusted EBITDA2 - $92-$115 million
• Capital expenditures - $34-$38 million

For earnings history and earnings-related data on Commercial Credit (CCR) click here.

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