Alpha Announces Fourth Quarter and Full Year 2021 Results

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- Reports record net income from continuing operations of $254.5 million for the fourth quarter 2021 - Posts record Adjusted EBITDA of $315.8 million for the fourth quarter 2021 - Further reduces long-term debt with early principal payments of $50 million on the term loan within the quarter - Announces $150 million share repurchase program - Completes refinancing of Asset-Based Revolving Credit Facility (ABL)

March 7, 2022 7:30 AM EST

BRISTOL, Tenn., March 7, 2022 /PRNewswire/ -- 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 and full year ending December 31, 2021.

(millions, except per share)

Three months ended

Dec. 31, 2021

Sept. 30, 2021

Dec. 31, 2020

Net income (loss)(2)

$254.5

$83.7

($55.1)

Net income (loss)(2) per diluted share

$13.30

$4.43

($3.00)

Adjusted EBITDA(1)

$315.8

$148.2

$7.4

Operating cash flow(3)

$104.3

$96.0

$56.2

Capital expenditures(3)

($22.9)

($22.3)

$35.1

Tons of coal sold(2)

4.0

4.7

3.7

____________________

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.

"Thanks to the continued dedication of our team, Alpha closed out the fourth quarter with an impressive $315.8 million in EBITDA and continued significant reduction in our long-term debt level," said David Stetson, Alpha's chair and chief executive officer. "In looking back on 2021, it was truly a transformational time for the company, complete with a name change to Alpha Metallurgical Resources at the start of the year and a series of important steps in solidifying our role as a leading pure-play metallurgical coal company and building on our role as the largest U.S. met coal producer. We transitioned our portfolio towards lower-cost and higher-quality operations, refreshed our board of directors, and completed refinancing of our ABL. Importantly, we are also making swift work of our balance sheet transformation. In a few short months we dramatically reduced the company's long-term debt and legacy liabilities, further strengthening the already firm foundation that Alpha enjoys. We have continued this momentum with an excellent start in 2022 and, if coal markets remain robust, we expect to be in a position to eliminate our long-term debt within the calendar year. Given our cash generation projections for the year, I'm pleased to announce that our board has approved a $150 million share repurchase program to continue increasing shareholder value."

Additionally, the board of directors has scheduled the company's annual meeting of stockholders for May 3, 2022.

Financial Performance

Alpha reported net income from continuing operations of $254.5 million, or $13.30 per diluted share, for the fourth quarter 2021. In the third quarter 2021, the company had net income from continuing operations of $83.7 million or $4.43 per diluted share.

Total Adjusted EBITDA was $315.8 million for the fourth quarter, compared with $148.2 million in the third quarter 2021.

Coal Revenues

(millions)

Three months ended

Dec. 31, 2021

Sept. 30, 2021

Met Segment

$811.5

$625.4

All Other

$15.0

$21.7

Met Segment (excl. freight & handling)(1)

$683.6

$497.2

All Other (excl. freight & handling)(1)

$15.0

$21.7

Tons Sold

(millions)

Three months ended

Dec. 31, 2021

Sept. 30, 2021

Met Segment

3.8

4.4

All Other

0.2

0.3

____________________

1. Represents Non-GAAP coal revenues which is defined and reconciled under "Non-GAAP Financial Measures" and "Results of Operations."

Coal Sales Realization(1)

(per ton)

Three months ended

Dec. 31, 2021

Sept. 30, 2021

Met Segment

$180.66

$113.51

All Other

$62.56

$62.43

____________________

1. Represents Non-GAAP coal sales realization which is defined and reconciled under "Non-GAAP Financial Measures" and "Results of Operations."

In the fourth quarter our net realized pricing for the Met segment was $180.66 per ton, while net realization in the All Other category was $62.56.

"Realizations for the fourth quarter continued to trend upward as expected, with our export business highlighting the benefit of the elevated global pricing dynamics in the metallurgical market," said Andy Eidson, Alpha's president and chief financial officer. "We look forward to future quarters when our 2022 domestic realizations are expected to improve significantly as a result of the negotiations completed by our sales team late last year. Even with lower domestic pricing that had been locked in long ago, our realizations on met coal for the quarter still came in at an average of $197 per ton."

The table below provides a breakdown of our Met segment coal sold in the fourth quarter by pricing mechanism.

(in millions, except per ton data)

Met Segment Sales

Three months ended Dec. 31, 2021

Tons Sold

Coal Revenues

Realization/ton(1)

% of Met Tons Sold

Export - Other Pricing Mechanisms

1.4

$349.1

$251.12

42%

Domestic

1.1

$95.7

$90.87

31%

Export - Australian Indexed

0.9

$213.5

$239.08

27%

Total Met Coal Revenues

3.3

$658.2

$197.31

100%

Thermal Coal Revenues

0.4

$25.4

$56.62

Total Met Segment Coal Revenues (excl. freight & handling)(1)

3.7

$683.6

$180.66

____________________

1. Represents Non-GAAP coal sales realization which is defined and reconciled under "Non-GAAP Financial Measures" and "Results of Operations."

Cost of Coal Sales

(in millions, except per ton data)

Three months ended

Dec. 31, 2021

Sept. 30, 2021

Cost of Coal Sales

$497.4

$488.2

Cost of Coal Sales (excl. freight & handling/idle)(1)

$364.4

$352.1

(per ton)

Met Segment(1)

$92.46

$76.62

All Other(1)

$60.77

$47.47

____________________

1. Represents Non-GAAP cost of coal sales and Non-GAAP cost of coal sales per ton which is defined and reconciled under "Non-GAAP Financial Measures" and "Results of Operations."

"As pricing for our products remains higher, we encounter elevated costs of coal sales levels as a result, especially for factors such as royalties and taxes which are tied directly to sales price," said Jason Whitehead, executive vice president and chief operating officer. "We've discussed this in prior quarters, but my focus for the operations teams is to continue positively influencing the factors directly within our control, such as safety and productivity. These are the foundational elements that allow us to effectively manage our costs. On the whole, our teams have done a good job in this regard."

In the fourth quarter, the company's Met segment cost of coal sales increased to an average of $92.46 per ton as compared to $76.62 per ton in the prior quarter. Cost of coal sales for the All Other category increased to $60.77 per ton in the fourth quarter from an average cost of $47.47 per ton in the third quarter.

Liquidity and Capital Resources

"As we've reiterated consistently over the last several quarters, our focus continues to be debt reduction and creating a fortress balance sheet," said Eidson. "In the fourth quarter, we made another $50.0 million in voluntary principal prepayments on the term loan. To put that in perspective, in the second half of 2021, we paid an aggregate of $101.1 million in principal, coupled with the previously announced payments to satisfy certain legacy liabilities. Since then, we've made another $150.0 million in principal prepayments on the term loan, bringing our current debt level to under $300 million. Assuming market conditions remain at levels similar to the last few months, we will be able to achieve our goal of aggressively paying off our debt in short order, while also maintaining an appropriate level of liquidity. In addition, we have enough visibility into near term cash flows to support the share repurchase program we have announced today."

Cash provided by operating activities increased for the fourth quarter of 2021 to $104.3 million as compared to third quarter's $96.0 million. Cash provided by operating activities includes discontinued operations. Capital expenditures for the fourth quarter were $22.9 million compared to $22.3 million for the third quarter of 2021.  

In December 2021, Alpha announced the successful completion of its ABL refinancing.

As of December 31, 2021, Alpha had $81.2 million in unrestricted cash and $131.2 million in restricted cash, deposits and investments. Total long-term debt, including the current portion of long-term debt as of December 31, 2021, was $448.6 million. At the end of the fourth quarter, the company had total liquidity of $115.2 million, including cash and cash equivalents of $81.2 million and $34.0 million of unused availability under the 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, 2021, the company had no borrowings and $121.0 million in letters of credit outstanding under the ABL. 

Operational and Performance Update

As further optimization of our portfolio, the company closed a transaction on November 5, 2021 to divest the idled Delbarton mining complex and associated assets, which include Delbarton preparation plant and Kielty mine. Additionally, on December 31, 2021, the idled Edwight surface mine and certain associated assets were divested. Together, these divestitures resulted in a reduction in reclamation obligations of $18.0 million.

Subsequent to the fourth quarter close on February 10, 2022, the fourth section of Lynn Branch began operation, completing one of the 2022 strategic uses of capital. We continue to make progress on the other projects in Alpha's previously disclosed growth capex plan for 2022.

As of February 25, 2022, Alpha has committed and priced approximately 39% of its metallurgical coal within the Met segment at an average price of $204.75 per ton and 100% of thermal coal in the Met segment at an average expected price of $52.46 per ton. In the All Other category the company is 82% committed and priced at an average price of $57.24 per ton.

2022 Guidance

in millions of tons

Low

High

Metallurgical

14.0

15.0

Thermal

0.8

1.2

Met Segment

14.8

16.2

All Other

0.6

0.8

Total Shipments

15.4

17.0

Committed/Priced1,2,3

Committed

Average Price

Metallurgical - Domestic

$189.31

Metallurgical - Export

$236.99

Metallurgical Total

39      %

$204.75

Thermal

100      %

$52.46

Met Segment

44      %

$180.36

All Other

82      %

$57.24

Committed/Unpriced1,3

Committed

Metallurgical Total

39      %

Thermal

—      %

Met Segment

37      %

All Other

—      %

Costs per ton4

Low

High

Met Segment

$88.00

$92.00

All Other

$58.00

$62.00

In millions (except taxes)

Low

High

SG&A5

$50

$54

Idle Operations Expense

$30

$40

Cash Interest Expense

$40

$45

DD&A

$90

$110

Capital Expenditures

$160

$190

Tax Rate6

5      %

15      %

Notes:

1.

Based on committed and priced coal shipments as of February 25, 2022. 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 expenses.

6.

Rate assumes no further ownership change limitations on the usage of net operating losses.

Share Repurchase Program

Alpha also announced today that its board of directors authorized a share repurchase program allowing for the expenditure of up to $150 million for the repurchase of the company's common stock. Repurchases will be made from time to time in accordance with applicable securities laws in the open market, and may include repurchases pursuant to Rule 10b5-1 trading plans. The share repurchase program is effective immediately and repurchases may begin as soon as March 9th, 2022.

The repurchase program does not obligate the company to acquire any particular amount of common stock or to acquire shares on any particular timetable, and the program may be suspended at any time at the company's discretion. The timing and amount of share repurchases will be determined by the company's management based on its evaluation of market conditions, the trading price of the stock, applicable legal requirements, compliance with the provisions of the company's debt agreements, and other factors.

Conference Call

The company plans to hold a conference call regarding its fourth quarter and full year 2021 results on March 7, 2022, 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 844-200-6205 (domestic toll-free) or 929-526-1599 (international) approximately 15 minutes prior to start time. Please use the access code 475225 to join 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. 

Investor Contact[email protected] 

Alex Rotonen, CFA423.956.6882

Media Contact[email protected] 

Emily O'Quinn423.573.0369

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," "non-GAAP coal margin," 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 or any other measure of operating results or liquidity presented in accordance with GAAP. We use non-GAAP coal revenues to present coal revenues generated, excluding freight and handling fulfillment revenues. Non-GAAP coal sales realization per ton for our operations is calculated as non-GAAP coal revenues divided by tons sold. We use non-GAAP cost of coal sales to adjust cost of coal sales to remove freight and handling costs, depreciation, depletion and amortization - production (excluding the depreciation, depletion and amortization related to selling, general and administrative functions), accretion on asset retirement obligations, amortization of acquired intangibles, net, and idled and closed mine costs. Non-GAAP cost of coal sales per ton for our operations is calculated as non-GAAP cost of coal sales divided by tons sold. Non-GAAP coal margin per ton for our coal operations is calculated as non-GAAP coal sales realization per ton for our coal operations less non-GAAP cost of coal sales per ton for our coal operations. 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,

2021

2020

2021

2020

Revenues:

Coal revenues

$              826,558

$              323,360

$          2,252,597

$          1,413,124

Other revenues

1,659

491

5,989

3,063

Total revenues

828,217

323,851

2,258,586

1,416,187

Costs and expenses:

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

497,382

301,831

1,679,742

1,281,011

Depreciation, depletion and amortization

29,786

(4,036)

110,047

139,885

Accretion on asset retirement obligations

6,550

6,559

26,520

26,504

Amortization of acquired intangibles, net

3,842

4,748

13,244

9,214

Asset impairment and restructuring

—

29,897

(561)

83,878

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

19,010

15,346

63,901

57,356

Total other operating loss (income):

Mark-to-market adjustment for acquisition-related obligations

1,516

4,676

19,525

(8,750)

Other income

(5,682)

(200)

(10,972)

(2,223)

Total costs and expenses

552,404

358,821

1,901,446

1,586,875

Income (loss) from operations

275,813

(34,970)

357,140

(170,688)

Other (expense) income:

Interest expense

(16,364)

(18,290)

(69,654)

(74,528)

Interest income

12

153

334

7,027

Equity loss in affiliates

(2,988)

(388)

(4,149)

(3,473)

Miscellaneous income (loss), net

1,442

(1,519)

6,867

(1,972)

Total other expense, net

(17,898)

(20,044)

(66,602)

(72,946)

Income (loss) from continuing operations before income taxes

257,915

(55,014)

290,538

(243,634)

Income tax (expense) benefit

(3,398)

(36)

(3,609)

2,164

Net income (loss) from continuing operations

254,517

(55,050)

286,929

(241,470)

Discontinued operations:

Income (loss) from discontinued operations before income taxes

2,727

(45,103)

1,660

(205,429)

Income tax benefit from discontinued operations

201

—

201

—

Income (loss) from discontinued operations

2,928

(45,103)

1,861

(205,429)

Net income (loss)

$              257,445

$            (100,153)

$              288,790

$            (446,899)

Basic income (loss) per common share:

Income (loss) from continuing operations

$                  13.77

$                   (3.00)

$                  15.56

$                 (13.20)

Income (loss) from discontinued operations

0.16

(2.47)

0.10

(11.22)

Net income (loss)

$                  13.93

$                   (5.47)

$                  15.66

$                 (24.42)

Diluted income (loss) per common share:

Income (loss) from continuing operations

$                  13.30

$                   (3.00)

$                  15.20

$                 (13.20)

Income (loss) from discontinued operations

0.15

(2.47)

0.10

(11.22)

Net income (loss)

$                  13.45

$                   (5.47)

$                  15.30

$                 (24.42)

Weighted average shares - basic

18,484,309

18,322,236

18,441,175

18,298,362

Weighted average shares - diluted

19,135,326

18,322,236

18,871,682

18,298,362

 

ALPHA METALLURGICAL RESOURCES, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

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

December 31, 2021

December 31, 2020

Assets

Current assets:

Cash and cash equivalents

$               81,211

$             139,227

Trade accounts receivable, net of allowance for doubtful accounts of $393 and $293 as of December 31, 2021 and 2020, respectively

489,241

145,670

Inventories, net

129,382

108,051

Prepaid expenses and other current assets

47,690

106,252

Current assets - discontinued operations

462

10,935

Total current assets

747,986

510,135

Property, plant, and equipment, net of accumulated depreciation and amortization of $443,856 and $382,423 as of December 31, 2021 and 2020, respectively

362,218

363,620

Owned and leased mineral rights, net of accumulated depletion and amortization of $52,444 and $35,143 as of December 31, 2021 and 2020, respectively

444,302

463,250

Other acquired intangibles, net of accumulated amortization of $34,221 and $25,700 as of December 31, 2021 and 2020, respectively

74,197

88,196

Long-term restricted cash

89,426

96,033

Other non-current assets

131,057

149,382

Non-current assets - discontinued operations

8,526

9,473

Total assets

$          1,857,712

$          1,680,089

Liabilities and Stockholders' Equity

Current liabilities:

Current portion of long-term debt

$                  2,989

$               28,830

Trade accounts payable

90,090

58,413

Acquisition-related obligations - current

22,405

19,099

Accrued expenses and other current liabilities

174,607

140,406

Current liabilities - discontinued operations

5,838

12,306

Total current liabilities

295,929

259,054

Long-term debt

445,562

553,697

Acquisition-related obligations - long-term

19,000

20,768

Workers' compensation and black lung obligations

208,193

230,081

Pension obligations

159,930

218,671

Asset retirement obligations

132,013

140,074

Deferred income taxes

317

480

Other non-current liabilities

26,176

28,072

Non-current liabilities - discontinued operations

23,683

29,090

Total liabilities

1,310,803

1,479,987

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, 20.8 million issued and 18.4 million outstanding at December 31, 2021 and 20.6 million issued and 18.3 million outstanding at December 31, 2020

208

206

Additional paid-in capital

784,743

779,424

Accumulated other comprehensive loss

(58,503)

(111,985)

Treasury stock, at cost: 2.4 million shares at December 31, 2021 and 2.3 million shares at December 31, 2020

(107,800)

(107,014)

Accumulated deficit

(71,739)

(360,529)

Total stockholders' equity

546,909

200,102

Total liabilities and stockholders' equity

$          1,857,712

$          1,680,089

 

ALPHA METALLURGICAL RESOURCES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Amounts in thousands)

Year Ended December 31,

2021

2020

Operating activities:

Net income (loss)

$                288,790

$              (446,899)

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

Depreciation, depletion and amortization

110,047

151,455

Amortization of acquired intangibles, net

13,244

10,075

Accretion of acquisition-related obligations discount

1,258

3,342

Amortization of debt issuance costs and accretion of debt discount

12,338

14,772

Mark-to-market adjustment for acquisition-related obligations

19,525

(8,750)

Loss on sale of business

—

36,113

Gain on disposal of assets, net

(9,911)

(2,401)

Accretion on asset retirement obligations

26,520

30,658

Employee benefit plans, net

(1,751)

14,439

Deferred income taxes

(163)

33,123

Asset impairment and restructuring

(561)

256,518

Stock-based compensation

5,315

4,896

Equity loss in affiliates

4,149

3,473

Other, net

(6,570)

(5,972)

Changes in operating assets and liabilities

Trade accounts receivable, net

(336,240)

91,190

Inventories, net

(21,331)

48,689

Prepaid expenses and other current assets

61,581

28,152

Deposits

26,853

(17,926)

Other non-current assets

(250)

(6,753)

Trade accounts payable

25,154

(28,620)

Accrued expenses and other current liabilities

15,961

15,428

Acquisition-related obligations

(18,121)

(32,560)

Asset retirement obligations

(16,306)

(19,375)

Other non-current liabilities

(24,588)

(43,831)

Net cash provided by operating activities

174,943

129,236

Investing activities:

Capital expenditures

(83,300)

(153,990)

Proceeds on disposal of assets

8,224

4,023

Cash paid on sale of business

—

(52,192)

Capital contributions to equity affiliates

(6,677)

(3,443)

Purchases of investment securities

(17,985)

(21,129)

Maturity of investment securities

13,265

16,685

Other, net

(3,382)

77

Net cash used in investing activities

(89,855)

(209,969)

Financing activities:

Proceeds from borrowings on long-term debt

—

57,500

Repurchases of long-term debt

(18,415)

—

Principal repayments of long-term debt

(119,097)

(76,491)

Principal repayments of financing lease obligations

(2,064)

(3,176)

Debt issuance costs

(6,683)

—

Common stock repurchases and related expenses

(786)

(209)

Net cash used in financing activities

(147,045)

(22,376)

Net decrease in cash and cash equivalents and restricted cash

(61,957)

(103,109)

Cash and cash equivalents and restricted cash at beginning of period

244,571

347,680

Cash and cash equivalents and restricted cash at end of period

$                182,614

$                244,571

Supplemental cash flow information:

Cash paid for interest

$                  63,061

$                  49,294

Cash paid for income taxes

$                        176

$                            5

Cash received for income tax refunds

$                  64,498

$                  68,801

Supplemental disclosure of noncash investing and financing activities:

Financing leases and capital financing - equipment

$                        787

$                    4,411

Accrued capital expenditures

$                    9,964

$                    7,493

The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the Condensed Consolidated Balance Sheets that sum to the total of the same such amounts shown in the Consolidated Statements of Cash Flows.

As of December 31,

2021

2020

Cash and cash equivalents

$                  81,211

$                139,227

Short-term restricted cash (included in Prepaid expenses and other current assets)

11,977

9,311

Long-term restricted cash

89,426

96,033

Total cash and cash equivalents and restricted cash shown in the Consolidated Statements of Cash Flows

$                182,614

$                244,571

 

ALPHA METALLURGICAL RESOURCES, INC. AND SUBSIDIARIES

ADJUSTED EBITDA RECONCILIATION

(Amounts in thousands)

Three Months Ended

Year Ended December 31,

September 30, 2021

December 31, 2021

December 31, 2020

2021

2020

Net income (loss) from continuing operations

$               83,693

$            254,517

$             (55,050)

$       286,929

$     (241,470)

Interest expense

17,338

16,364

18,290

69,654

74,528

Interest income

(54)

(12)

(153)

(334)

(7,027)

Income tax expense (benefit)

208

3,398

36

3,609

(2,164)

Depreciation, depletion and amortization

24,519

29,786

(4,036)

110,047

139,885

Non-cash stock compensation expense

1,188

964

696

5,315

4,896

Mark-to-market adjustment - acquisition-related obligations

11,676

1,516

4,676

19,525

(8,750)

Gain on settlement of acquisition-related obligations

—

(1,125)

—

(1,125)

—

Accretion on asset retirement obligations

6,674

6,550

6,559

26,520

26,504

Asset impairment and restructuring

—

—

29,897

(561)

83,878

Management restructuring costs (1)

—

—

—

—

941

Loss on partial settlement of benefit obligations

—

—

1,735

—

2,966

Amortization of acquired intangibles, net

2,980

3,842

4,748

13,244

9,214

Adjusted EBITDA

$             148,222

$            315,800

$                7,398

$       532,823

$         83,401

(1) Management restructuring costs are related to severance expense associated with senior management changes during the three months ended March 31, 2020.

 

ALPHA METALLURGICAL RESOURCES, INC. AND SUBSIDIARIES

RESULTS OF OPERATIONS

Three Months Ended September 30, 2021

(In thousands, except for per ton data)

Met

All Other

Consolidated

Coal revenues

$       625,387

$         21,742

$        647,129

Less: Freight and handling fulfillment revenues

(128,192)

(18)

(128,210)

Non-GAAP Coal revenues

$       497,195

$         21,724

$        518,919

Tons sold

4,380

348

4,728

Non-GAAP Coal sales realization per ton

$         113.51

$            62.43

$          109.75

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

$       468,706

$         19,463

$        488,169

Depreciation, depletion and amortization - production (1)

23,181

1,160

24,341

Accretion on asset retirement obligations

3,408

3,266

6,674

Amortization of acquired intangibles, net

3,063

(83)

2,980

Total Cost of coal sales

$       498,358

$         23,806

$        522,164

Less: Freight and handling costs

(128,192)

(18)

(128,210)

Less:  Depreciation, depletion and amortization - production (1)

(23,181)

(1,160)

(24,341)

Less: Accretion on asset retirement obligations

(3,408)

(3,266)

(6,674)

Less: Amortization of acquired intangibles, net

(3,063)

83

(2,980)

Less: Idled and closed mine costs

(4,932)

(2,927)

(7,859)

Non-GAAP Cost of coal sales

$       335,582

$         16,518

$        352,100

Tons sold

4,380

348

4,728

Non-GAAP Cost of coal sales per ton

$            76.62

$            47.47

$             74.47

(1) Depreciation, depletion and amortization - production excludes the depreciation, depletion and amortization related to selling, general and administrative functions.

 

Three Months Ended September 30, 2021

(In thousands, except for per ton data)

Met

All Other

Consolidated

Coal revenues

$       625,387

$         21,742

$       647,129

Less: Total Cost of coal sales (per table above)

(498,358)

(23,806)

(522,164)

GAAP Coal margin

$       127,029

$          (2,064)

$       124,965

Tons sold

4,380

348

4,728

GAAP Coal margin per ton

$            29.00

$            (5.93)

$            26.43

GAAP Coal margin

$       127,029

$          (2,064)

$       124,965

Add: Depreciation, depletion and amortization - production (1)

23,181

1,160

24,341

Add: Accretion on asset retirement obligations

3,408

3,266

6,674

Add: Amortization of acquired intangibles, net

3,063

(83)

2,980

Add: Idled and closed mine costs

4,932

2,927

7,859

Non-GAAP Coal margin

$       161,613

$            5,206

$       166,819

Tons sold

4,380

348

4,728

Non-GAAP Coal margin per ton

$            36.90

$            14.96

$            35.28

(1) Depreciation, depletion and amortization - production excludes the depreciation, depletion and amortization related to selling, general and administrative functions.

 

Three Months Ended December 31, 2021

(In thousands, except for per ton data)

Met

All Other

Consolidated

Coal revenues

$       811,528

$         15,030

$        826,558

Less: Freight and handling fulfillment revenues

(127,925)

(16)

(127,941)

Non-GAAP Coal revenues

$       683,603

$         15,014

$        698,617

Tons sold

3,784

240

4,024

Non-GAAP Coal sales realization per ton

$         180.66

$            62.56

$          173.61

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

$       481,317

$         16,065

$        497,382

Depreciation, depletion and amortization - production (1)

24,560

5,041

29,601

Accretion on asset retirement obligations

3,401

3,149

6,550

Amortization of acquired intangibles, net

3,922

(80)

3,842

Total Cost of coal sales

$       513,200

$         24,175

$        537,375

Less: Freight and handling costs

(127,925)

(16)

(127,941)

Less:  Depreciation, depletion and amortization - production (1)

(24,560)

(5,041)

(29,601)

Less: Accretion on asset retirement obligations

(3,401)

(3,149)

(6,550)

Less: Amortization of acquired intangibles, net

(3,922)

80

(3,842)

Less: Idled and closed mine costs

(3,533)

(1,465)

(4,998)

Non-GAAP Cost of coal sales

$       349,859

$         14,584

$        364,443

Tons sold

3,784

240

4,024

Non-GAAP Cost of coal sales per ton

$            92.46

$            60.77

$             90.57

(1) Depreciation, depletion and amortization - production excludes the depreciation, depletion and amortization related to selling, general and administrative functions.

 

Three Months Ended December 31, 2021

(In thousands, except for per ton data)

Met

All Other

Consolidated

Coal revenues

$       811,528

$         15,030

$       826,558

Less: Total Cost of coal sales (per table above)

(513,200)

(24,175)

(537,375)

GAAP Coal margin

$       298,328

$          (9,145)

$       289,183

Tons sold

3,784

240

4,024

GAAP Coal margin per ton

$            78.84

$          (38.10)

$            71.86

GAAP Coal margin

$       298,328

$          (9,145)

$       289,183

Add: Depreciation, depletion and amortization - production (1)

24,560

5,041

29,601

Add: Accretion on asset retirement obligations

3,401

3,149

6,550

Add: Amortization of acquired intangibles, net

3,922

(80)

3,842

Add: Idled and closed mine costs

3,533

1,465

4,998

Non-GAAP Coal margin

$       333,744

$               430

$       334,174

Tons sold

3,784

240

4,024

Non-GAAP Coal margin per ton

$            88.20

$              1.79

$            83.05

(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

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

$         27,847

$        301,831

Depreciation, depletion and amortization - production (1)

2,381

(6,649)

(4,268)

Accretion on asset retirement obligations

3,328

3,231

6,559

Amortization of acquired intangibles, net

5,014

(266)

4,748

Total Cost of coal sales

$       284,707

$         24,163

$        308,870

Less: Freight and handling costs

(48,251)

(1,548)

(49,799)

Less:  Depreciation, depletion and amortization - production (1)

(2,381)

6,649

4,268

Less: Accretion on asset retirement obligations

(3,328)

(3,231)

(6,559)

Less: Amortization of acquired intangibles, net

(5,014)

266

(4,748)

Less: Idled and closed mine costs

(3,445)

(2,698)

(6,143)

Non-GAAP Cost of coal sales

$       222,288

$         23,601

$        245,889

Tons sold

3,210

536

3,746

Non-GAAP Cost of coal sales per ton

$            69.25

$            44.03

$             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

All Other

Consolidated

Coal revenues

$       289,756

$         33,604

$       323,360

Less: Total Cost of coal sales (per table above)

(284,707)

(24,163)

(308,870)

GAAP Coal margin

$            5,049

$            9,441

$         14,490

Tons sold

3,210

536

3,746

GAAP Coal margin per ton

$              1.57

$            17.61

$              3.87

GAAP Coal margin

$            5,049

$            9,441

$         14,490

Add: Depreciation, depletion and amortization - production (1)

2,381

(6,649)

(4,268)

Add: Accretion on asset retirement obligations

3,328

3,231

6,559

Add: Amortization of acquired intangibles, net

5,014

(266)

4,748

Add: Idled and closed mine costs

3,445

2,698

6,143

Non-GAAP Coal margin

$         19,217

$            8,455

$         27,672

Tons sold

3,210

536

3,746

Non-GAAP Coal margin per ton

$              5.99

$            15.77

$              7.39

(1) Depreciation, depletion and amortization - production excludes the depreciation, depletion and amortization related to selling, general and administrative functions.

 

Year Ended December 31, 2021

(In thousands, except for per ton data)

Met

All Other

Consolidated

Coal revenues

$    2,173,647

$         78,950

$     2,252,597

Less: Freight and handling fulfillment revenues

(380,457)

(520)

(380,977)

Non-GAAP Coal revenues

$    1,793,190

$         78,430

$     1,871,620

Tons sold

15,569

1,270

16,839

Non-GAAP Coal sales realization per ton

$         115.18

$            61.76

$          111.15

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

$    1,607,157

$         72,585

$     1,679,742

Depreciation, depletion and amortization - production (1)

99,963

9,362

109,325

Accretion on asset retirement obligations

13,571

12,949

26,520

Amortization of acquired intangibles, net

13,671

(427)

13,244

Total Cost of coal sales

$    1,734,362

$         94,469

$     1,828,831

Less: Freight and handling costs

(380,457)

(520)

(380,977)

Less:  Depreciation, depletion and amortization - production (1)

(99,963)

(9,362)

(109,325)

Less: Accretion on asset retirement obligations

(13,571)

(12,949)

(26,520)

Less: Amortization of acquired intangibles, net

(13,671)

427

(13,244)

Less: Idled and closed mine costs

(16,858)

(11,680)

(28,538)

Non-GAAP Cost of coal sales

$    1,209,842

$         60,385

$     1,270,227

Tons sold

15,569

1,270

16,839

Non-GAAP Cost of coal sales per ton

$            77.71

$            47.55

$             75.43

(1) Depreciation, depletion and amortization - production excludes the depreciation, depletion and amortization related to selling, general and administrative functions.

 

Year Ended December 31, 2021

(In thousands, except for per ton data)

Met

All Other

Consolidated

Coal revenues

$    2,173,647

$         78,950

$    2,252,597

Less: Total Cost of coal sales (per table above)

(1,734,362)

(94,469)

(1,828,831)

GAAP Coal margin

$       439,285

$        (15,519)

$       423,766

Tons sold

15,569

1,270

16,839

GAAP Coal margin per ton

$            28.22

$          (12.22)

$            25.17

GAAP Coal margin

$       439,285

$        (15,519)

$       423,766

Add: Depreciation, depletion and amortization - production (1)

99,963

9,362

109,325

Add: Accretion on asset retirement obligations

13,571

12,949

26,520

Add: Amortization of acquired intangibles, net

13,671

(427)

13,244

Add: Idled and closed mine costs

16,858

11,680

28,538

Non-GAAP Coal margin

$       583,348

$         18,045

$       601,393

Tons sold

15,569

1,270

16,839

Non-GAAP Coal margin per ton

$            37.47

$            14.21

$            35.71

(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

All Other

Consolidated

Coal revenues

$    1,263,855

$       149,269

$     1,413,124

Less: Freight and handling fulfillment revenues

(206,509)

(12,940)

(219,449)

Non-GAAP Coal revenues

$    1,057,346

$       136,329

$     1,193,675

Tons sold

13,070

2,443

15,513

Non-GAAP Coal sales realization per ton

$            80.90

$            55.80

$             76.95

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

$    1,140,556

$       140,455

$     1,281,011

Depreciation, depletion and amortization - production (1)

124,060

14,568

138,628

Accretion on asset retirement obligations

14,214

12,290

26,504

Amortization of acquired intangibles, net

12,889

(3,675)

9,214

Total Cost of coal sales

$    1,291,719

$       163,638

$     1,455,357

Less: Freight and handling costs

(206,509)

(12,940)

(219,449)

Less:  Depreciation, depletion and amortization - production (1)

(124,060)

(14,568)

(138,628)

Less: Accretion on asset retirement obligations

(14,214)

(12,290)

(26,504)

Less: Amortization of acquired intangibles, net

(12,889)

3,675

(9,214)

Less: Idled and closed mine costs

(16,640)

(12,240)

(28,880)

Non-GAAP Cost of coal sales

$       917,407

$       115,275

$     1,032,682

Tons sold

13,070

2,443

15,513

Non-GAAP Cost of coal sales per ton

$            70.19

$            47.19

$             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

All Other

Consolidated

Coal revenues

$    1,263,855

$       149,269

$    1,413,124

Less: Total Cost of coal sales (per table above)

(1,291,719)

(163,638)

(1,455,357)

GAAP Coal margin

$        (27,864)

$        (14,369)

$        (42,233)

Tons sold

13,070

2,443

15,513

GAAP Coal margin per ton

$            (2.13)

$            (5.88)

$            (2.72)

GAAP Coal margin

$        (27,864)

$        (14,369)

$        (42,233)

Add: Depreciation, depletion and amortization - production (1)

124,060

14,568

138,628

Add: Accretion on asset retirement obligations

14,214

12,290

26,504

Add: Amortization of acquired intangibles, net

12,889

(3,675)

9,214

Add: Idled and closed mine costs

16,640

12,240

28,880

Non-GAAP Coal margin

$       139,939

$         21,054

$       160,993

Tons sold

13,070

2,443

15,513

Non-GAAP Coal margin per ton

$            10.71

$              8.62

$            10.38

(1) Depreciation, depletion and amortization - production excludes the depreciation, depletion and amortization related to selling, general and administrative functions.

 

Three Months Ended September 30, 2021

(In thousands, except for per ton data)

Met

All Other

Consolidated

Non-GAAP Cost of coal sales

$       335,582

$         16,518

$        352,100

Less: cost of purchased coal sold

(32,168)

—

(32,168)

Adjusted cost of produced coal sold

$       303,414

$         16,518

$        319,932

Produced tons sold

4,107

348

4,455

Adjusted cost of produced coal sold per ton (1)

$            73.88

$            47.47

$             71.81

(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,  2021

(In thousands, except for per ton data)

Met

All Other

Consolidated

Non-GAAP Cost of coal sales

$       349,859

$         14,584

$        364,443

Less: cost of purchased coal sold

(22,798)

(660)

(23,458)

Adjusted cost of produced coal sold

$       327,061

$         13,924

$        340,985

Produced tons sold

3,610

235

3,845

Adjusted cost of produced coal sold per ton (1)

$            90.60

$            59.25

$             88.68

(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

All Other

Consolidated

Non-GAAP Cost of coal sales

$       222,288

$         23,601

$        245,889

Less: cost of purchased coal sold

(19,993)

(93)

(20,086)

Adjusted cost of produced coal sold

$       202,295

$         23,508

$        225,803

Produced tons sold

2,939

535

3,474

Adjusted cost of produced coal sold per ton (1)

$            68.83

$            43.94

$             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.

 

Year Ended December 31, 2021

(In thousands, except for per ton data)

Met

All Other

Consolidated

Non-GAAP Cost of coal sales

$    1,209,842

$         60,385

$     1,270,227

Less: cost of purchased coal sold

(97,872)

(660)

(98,532)

Adjusted cost of produced coal sold

$    1,111,970

$         59,725

$     1,171,695

Produced tons sold

14,638

1,265

15,903

Adjusted cost of produced coal sold per ton (1)

$            75.96

$            47.21

$             73.68

(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

All Other

Consolidated

Non-GAAP Cost of coal sales

$       917,407

$       115,275

$     1,032,682

Less: cost of purchased coal sold

(85,769)

(925)

(86,694)

Adjusted cost of produced coal sold

$       831,638

$       114,350

$        945,988

Produced tons sold

11,941

2,429

14,370

Adjusted cost of produced coal sold per ton (1)

$            69.65

$            47.08

$             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.

 

Three Months Ended December 31, 2021

(In thousands, except for per ton data)

Tons Sold

Coal Revenues

Non-GAAP Coal sales realization per ton

% of Met Tons Sold

Export - other pricing mechanisms

1,390

$       349,055

$         251.12

42     %

Domestic

1,053

95,683

$           90.87

31     %

Export - Australian indexed

893

213,500

$         239.08

27     %

Total Met segment - met coal

3,336

$       658,238

$         197.31

100     %

Met segment - thermal coal

448

25,365

$           56.62

Total Met segment Coal revenues

3,784

683,603

$         180.66

All Other Coal revenues

240

15,014

$           62.56

Non-GAAP Coal revenues

4,024

$       698,617

$         173.61

Add: Freight and handling fulfillment revenues

—

127,941

Coal revenues

4,024

$       826,558

 

 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/alpha-announces-fourth-quarter-and-full-year-2021-results-301496340.html

SOURCE Alpha Metallurgical Resources, Inc.


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