Cloud Peak Energy Inc. Announces Results for Third Quarter and First Nine Months of 2011
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Cloud Peak Energy Inc. (NYSE:CLD), one of the largest U.S. coal
producers and the only pure-play Powder River Basin (PRB) coal company,
today announced results for the third quarter and first nine months of
2011.
2011 Third Quarter and Nine Months Highlights
Adjusted EBITDA1 of $87.9 million in the third quarter of
2011 compared with $94.5 million in the third quarter of 2010;
Adjusted EBITDA of $258.8 million compared with $253.1 million for the
first nine months of 2010.
Net income of $24.6 million resulting in Adjusted EPS1 of
$0.61 compared to $0.60 in the third quarter of 2010; for the nine
months 2011, net income of $146.0 million resulting in Adjusted EPS of
$1.78 compared to $1.39 in the first nine months of 2010.
Diluted EPS of $0.41 compared to a loss of $0.22 in the third quarter
of 2010; diluted EPS of $2.41 compared to $0.68 in the first nine
months of 2010.
Asian exports were up approximately 48 percent to 1.4 million tons
from 0.9 million tons in the third quarter of 2010. For the first nine
months, Asian exports were 3.7 million tons up 47 percent from 2.5
million tons exported in the first nine months of 2010.
Cash and cash equivalents increased to $437.6 million during the third
quarter of 2011 following the release of $86.6 million from previously
restricted cash, and cash flow from operations of $93.7 million in the
third quarter.
'Our third quarter was highlighted by our mines′ continued strong
operating performance and the continued expansion of our Asian exports
by 48 percent over the third quarter of last year,? said Colin Marshall,
President and Chief Executive Officer. 'Flooding in the Midwest affected
railroad performance from May to September; however, by late September
the railroads' performance had returned to normal, which has allowed us
to improve our full-year guidance. Costs are under control and our
exports are expected to be above 4.5 million tons for the full year.?
? | ? | ? | ? | ? | ? | ? | ? | |||||
Operating Highlights1 | Q3 | Q3 | First Nine | First Nine | ||||||||
2011 | 2010 | 2011 | 2010 | |||||||||
Tons Sold (in millions) | 24.4 | 25.1 | 70.5 | 70.4 | ||||||||
Realized price per ton sold | $ 12.91 | $ 12.36 | $ 12.88 | $ 12.31 | ||||||||
Average cost of product sold per ton | $ 9.17 | $ 8.36 | $ 9.12 | $ 8.41 | ||||||||
1 Includes the three company-operated mines only. | ||||||||||||
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For the third quarter, sales from our three company-operated mines were
24.4 million tons, down from 25.1 million tons in the third quarter of
2010 due to flood related interruptions to rail services which reduced
shipments from May to mid-September. Adjusted EBITDA declined slightly
to $87.9 million, driven by lower volumes. Realized price per ton
increased to $12.91. Average cost of product sold per ton was $9.17, up
from last year due to the lower volumes mined, higher diesel prices,
increased repairs and maintenance, and higher strip ratios. For the
first nine months, we generated Adjusted EBITDA of $258.8 million up
from $253.1 million for the same period in 2010 driven by strong export
sales and higher realized prices.
Health, Safety and Environment Record
During the first nine months of 2011, of our approximately 1,550
employees, we suffered 10 minor reportable injuries resulting in a
year-to-date MSHA All Injury Frequency Rate of 0.91, an increase over
the full year 2010 rate of 0.58. We continue to focus on the safety of
all of our employees and contractors.
Balance Sheet and Cash Flow
Cash flow from operations totaled $93.7 million for the third quarter of
2011. Capital expenditures were $29.8 million. Coal lease acquisition
payments for the quarter were $50.2 million.
Unrestricted cash on hand as of September 30, 2011 was $437.6 million up
from $326.7 million at June 30, 2011. Cloud Peak Energy′s balance sheet
continues to be well positioned with total available liquidity of $927.1
million as of September 30, 2011. Supported by our strong operational
performance, we were able to secure reductions in collateral
requirements from almost all of our surety bond providers, thereby
releasing $86.6 million of restricted cash during the third quarter of
2011.
During the three months ended September 30, 2011, the company completed
its annual update to the undiscounted estimated liability owed to Rio
Tinto under the Tax Receivable Agreement which was established in
connection with the IPO. The estimated liability was updated for the
finalization of the effects of the Secondary Offering, based on the
final 2010 tax returns which were completed in the third quarter. This
resulted in a $29.9 million reduction in the estimated liability and a
corresponding credit to 'Additional paid-in capital? in the equity
section of the balance sheet.
The estimated liability was also updated for the latest life of mine
budgets and operating plans. Because of the reduced future tax benefit
expected to be received as explained above, there was a further decrease
in the estimated liability compared to the second quarter, resulting in
a $22.9 million benefit to non-operating income for the three months
ended September 30, 2011. Also in relation to the third quarter Tax
Receivable Agreement updates, the income tax expense line item was
impacted with a net charge of $35.5 million which related to changes in
deferred tax assets and valuation allowance following the updates.
The total undiscounted estimated liability owed to Rio Tinto under the
Tax Receivable Agreement was $180.0 million at September 30, 2011, of
which $9.4 million was classified as current and the remainder
non-current.
The changes to the income statement in relation to the Tax Receivable
Agreement are non-cash and non-operating in nature. To better reflect
the underlying performance of our core operations, we exclude the Tax
Receivable Agreement impacts in our presentation of Adjusted EBITDA and
Adjusted EPS.
Outlook
The outlook for the rest of 2011 and 2012 is positive with the
operations well placed and domestic demand forecast to be stable. Again
in 2012, we expect to achieve our sales target of entering each year
essentially fully contracted. We will face normal cost pressures due to
increasing workload (strip ratios and haul distances) and rising input
prices for parts, tires, wages and fuel. Knowing how much we expect to
ship reduces production variations at the mines greatly improving
operating efficiency and allowing us to concentrate on productivity
improvement projects to help offset cost increases. For 2012, we have
currently contracted to sell 92 million tons, of which 82 million tons
are under fixed-price contracts with a weighted-average price of $13.44
per ton. For 2013, we have currently contracted to sell 73 million tons
from our three company-operated mines. Of this committed 2013
production, 57 million tons are under fixed-price contracts with a
weighted-average price of $14.25 per ton.
A major uncertainty for the medium term is the impact of the multiple
environmental regulations that are currently facing coal burning
utilities. On August 8, 2011, the U.S. Environmental Protection Agency
('EPA?) published the Cross-State Air Pollution Rule ('CSAPR?). Since
CSAPR was announced, with its January 1, 2012 start date, there has been
increased interest in our low sulfur Antelope coal and an associated
increase in price relative to the standard 0.8 lbs SO2/mmBtu.
However, the uncertainty around CSAPR and possible delays related to the
many legal challenges are now causing some utilities to hold back on
coal purchases as they try to work out the best approach for their power
plants.
For Cloud Peak Energy, it currently appears that CSAPR will increase
demand for ultra-low sulfur Antelope coal while the impact on domestic
demand for Spring Creek and Cordero Rojo coal is not yet clear. The
longer term impact of CSAPR will depend on, among other things, the
final form and possible delay to the rule, the extent of fuel switching,
installation of scrubbers, plant closures and reduced operating hours.
The medium term impacts of CSAPR and other proposed rules such as the
Utility MACT are uncertain; however, it does appear they will increase
the cost of electricity with the associated reduction in US job creation
and economic growth.
Cloud Peak Energy′s total 2011 Asian exports are expected to be above
4.5 million tons, around 4.0 million of which will be through the
Westshore terminal in Vancouver, B.C. with the balance through the
Ridley terminal in Prince Rupert, B.C. While demand from our Asian
customers remains strong, next year′s exports will again be limited by
available terminal capacity. In 2012, we will aim to export similar
tonnage through Westshore by working to maximize shipments as
opportunities arise through the year. There are currently 0.3 million
tons contracted to go through the Ridley terminal in 2012. As previously
disclosed, exports through the Ridley terminal incur significantly
higher rail costs than through Westshore due to the longer multi
railroad haul. We will continue to make additional sales through Ridley
and also to Europe when prices and logistics make them viable.
Updated Guidance ? 2011 Financial and Operational Estimates
The following table provides the company′s current outlook and
assumptions for selected 2011 financial and operational metrics:
? | ? | ||
Item | ? | ? | Estimate or Estimated Range |
Coal production for our three operated mines * | ? | ? | 94 ? 95.5 million tons |
Committed sales with fixed prices * | ? | ? | Approximately 94.8 million tons |
Anticipated realized price of produced coal * | ? | ? | Approximately $12.93 per ton |
Average cost of produced coal *1 | ? | ? | $9.10 - $9.30 per ton |
Additional operating margin * | ? | ? | $35 - $45 million |
Selling, general and administrative expenses * | ? | ? | $50 - $55 million |
Interest expense * | ? | ? | $35 - $45 million |
Depreciation, depletion and accretion * | ? | ? | $90 - $100 million |
Effective income tax rate *2 | ? | ? | Approximately 36% |
Capital expenditures (excludes federal coal leases) *3 | ? | ? | $115 - $130 million |
Committed federal coal lease payments | ? | ? | $133 million |
1 Represents average Cost of Product Sold for produced coal for our three operated mines. | |||
2 Excluding impact of the Tax Receivable Agreement. | |||
3 Includes capitalized interest. | |||
*Updated this quarter. | |||
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Conference Call Details
A conference call with management is scheduled at 5:00 p.m. ET on
October 27, 2011, to review the results and current business conditions.
The call will be webcast live over the internet from the Company's
website at www.cloudpeakenergy.com
under 'Investor Relations?. Participants should follow the instructions
provided on the website for downloading and installing the audio
applications necessary to join the webcast. Interested individuals also
can access the live conference call via telephone at 866.770.7125
(domestic) or 617.213.8066 (international) and entering pass code
28966800.
Following the live webcast, a replay will be available at the same URL
on the company′s website for seven days. A telephonic replay will also
be available approximately two hours after the call and can be accessed
by dialing 888.286.8010 (domestic) or 617.801.6888 (international) and
entering pass code 90412427. The telephonic replay will be available for
seven days.
About Cloud Peak Energy ?
Cloud Peak Energy Inc. (NYSE:CLD) is headquartered in Wyoming and
is one of the largest U.S. coal producers and the only pure-play PRB
coal company. As one of the safest coal producers in the nation, Cloud
Peak Energy specializes in the production of low sulfur, subbituminous
coal. The company owns and operates three surface coal mines in the PRB,
the lowest cost major coal producing region in the nation. The Antelope
and Cordero Rojo mines are located in Wyoming and the Spring Creek mine
is located near Decker, Montana. With approximately 1,550 employees, the
company is widely recognized for its exemplary performance in its safety
and environmental programs. Cloud Peak Energy is a sustainable fuel
supplier for approximately 4 percent of the nation′s electricity.
Cautionary Note Regarding Forward-Looking Statements
This release and our related presentation contain 'forward-looking
statements' within the meaning of the safe harbor provisions of Section
27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. Forward-looking statements are not statements of
historical facts and often contain words such as 'may,' 'will,'
'expect,' 'believe,' 'anticipate,' 'plan,' 'estimate,' 'seek,' 'could,'
'should,' 'intend,' 'potential,' or words of similar meaning.
Forward-looking statements are based on management's current
expectations, beliefs, assumptions and estimates regarding our company,
industry, economic conditions, government regulations and energy
policies and other factors. Forward-looking statements may include, for
example, (1) our outlook for 2011 and future periods for our company,
the PRB and the industry in general, and our operational, financial and
export guidance; (2) anticipated economic conditions and demand by
domestic and foreign utilities, including the anticipated impact on
demand driven by CSAPR and other regulatory developments; (3) prices for
natural gas and other alternative sources of energy used to generate
electricity; (4) coal stockpile levels and the impacts on future demand;
(5) our plans to replace and/or grow our coal tons; (6) business
development and growth initiatives; (7) operational plans for our mines;
(8) our cost management efforts; (9) industry estimates of the EIA and
other third party sources; (10) estimated Tax Receivable Agreement
liabilities; and (11) other statements regarding our plans, strategies,
prospects and expectations concerning our business, operating results,
financial condition and other matters that do not relate strictly to
historical facts. These statements are subject to significant risks,
uncertainties, and assumptions that are difficult to predict and could
cause actual results to differ materially from those expressed or
implied in the forward-looking statements. Factors that could adversely
affect our future results include, for example, (a) future economic
conditions; (b) demand for our coal by the domestic electric generation
industry, export demand and terminal capacity and the price we receive
for our coal; (c) reductions or deferrals of purchases by major
customers and our ability to renew sales contracts; (d) environmental,
health, safety, endangered species or other legislation, regulations,
court decisions or government actions, or related third-party regulatory
legal challenges, including any new requirements (such as CSAPR)
affecting the use, demand or price for coal or imposing additional
costs, liabilities or restrictions on our mining operations; (e) public
perceptions, third-party regulatory legal challenges or governmental
actions and energy policies relating to concerns about climate change,
including emissions restrictions and governmental subsidies that make
wind, solar or other alternative fuel sources more cost-effective and
competitive with coal; (f) operational, geological, equipment, permit,
labor, weather-related and other risks inherent in surface coal mining;
(g) our ability to efficiently conduct our mining operations, (h)
transportation and export terminal availability, performance and costs;
(i) availability, timing of delivery and costs of key supplies, capital
equipment or commodities such as diesel fuel, steel, explosives and
tires; (j) our ability to acquire future coal tons through the federal
LBA process and necessary surface rights in a timely and cost-effective
manner and the impact of third-party regulatory legal challenges, (k)
access to capital and credit markets and availability and costs of
credit, surety bonds, letters of credit, and insurance; (l) the impact
of direct and indirect competition from coal producers and competing
sources of energy, domestically and internationally; (m) litigation and
other contingent liabilities; and (n) other risk factors described from
time to time in the reports and registration statements we file with the
Securities and Exchange Commission ('SEC'), including those in Item 1A -
Risk Factors in our most recent Form 10-K and any updates thereto in our
Forms 10-Q and current reports on Forms 8-K. There may be other risks
and uncertainties that are not currently known to us or that we
currently believe are not material. We make forward-looking statements
based on currently available information, and we assume no obligation
to, and expressly disclaim any obligation to, update or revise publicly
any forward-looking statements made in this release or our related
presentation, whether as a result of new information, future events or
otherwise, except as required by law.
Non-GAAP Financial Measures
This release and our related presentation include the non-GAAP financial
measures of (1) Adjusted EBITDA and (2) Adjusted Earnings Per Share
('Adjusted EPS'). Adjusted EBITDA and Adjusted EPS are intended to
provide additional information only and do not have any standard meaning
prescribed by generally accepted accounting principles in the U.S., or
GAAP. A quantitative reconciliation of net income to Adjusted EBITDA and
EPS (as defined below) to Adjusted EPS is found in the tables
accompanying this release.
EBITDA represents net income before (1) interest income (expense) net,
(2) income tax provision, (3) depreciation and depletion, (4)
amortization, and (5) accretion. Adjusted EBITDA represents EBITDA as
further adjusted to exclude specifically identified items that
management believes do not directly reflect our core operations. The
specifically identified items are the income statement impacts, as
applicable, of: (1) the Tax Receivable Agreement and (2) our significant
broker contract that expired in the first quarter of 2010.
Adjusted EPS represents diluted earnings (loss) per share attributable
to controlling interest ('EPS'), adjusted to exclude the estimated per
share impact of the same specifically identified items used to calculate
Adjusted EBITDA and described above.
Adjusted EBITDA is an additional tool intended to assist our management
in comparing our performance on a consistent basis for purposes of
business decision-making by removing the impact of certain items that
management believes do not directly reflect our core operations.
Adjusted EBITDA is a metric intended to assist management in evaluating
operating performance, comparing performance across periods, planning
and forecasting future business operations and helping determine levels
of operating and capital investments. Period-to-period comparisons of
Adjusted EBITDA are intended to help our management identify and assess
additional trends potentially impacting our company that may not be
shown solely by period-to-period comparisons of net income. Adjusted
EBITDA is also used as part of our incentive compensation program for
our executive officers and others.
We believe Adjusted EBITDA and Adjusted EPS are also useful to
investors, analysts and other external users of our consolidated
financial statements in evaluating our operating performance from period
to period and comparing our performance to similar operating results of
other relevant companies. Adjusted EBITDA allows investors to measure a
company's operating performance without regard to items such as interest
expense, taxes, depreciation and depletion, amortization and accretion
and other specifically identified items that are not considered to
directly reflect our core operations. Similarly, we believe our use of
Adjusted EPS provides an appropriate measure to use in assessing our
performance across periods given that this measure provides an
adjustment for certain specifically identified significant items that
are not considered to directly reflect our core operations, the
magnitude of which may vary drastically from period to period and,
thereby, have a disproportionate effect on the earnings per share
reported for a given period.
Our management recognizes that using Adjusted EBITDA and Adjusted EPS as
performance measures has inherent limitations as compared to net income,
EPS or other GAAP financial measures, as these non-GAAP measures exclude
certain items, including items that are recurring in nature, which may
be meaningful to investors. Adjusted EBITDA and Adjusted EPS should not
be considered in isolation and do not purport to be alternatives to net
income, EPS or other GAAP financial measures as a measure of our
operating performance. Because not all companies use identical
calculations, our presentations of Adjusted EBITDA and Adjusted EPS may
not be comparable to other similarly titled measures of other companies.
Moreover, our presentation of Adjusted EBITDA is different than EBITDA
as defined in our debt financing agreements.
? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | |||||||||
Tons Sold | ||||||||||||||||||||||||
(in thousands) | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q3 YTD | Year | ||||||||||||||||
2011 | 2011 | 2011 | 2010 | 2010 | 2010 | 2011 | 2010 | |||||||||||||||||
Mine | ||||||||||||||||||||||||
Antelope | 8,901 | 9,059 | 9,166 | 9,011 | 9,481 | 8,934 | 27,127 | 35,896 | ||||||||||||||||
Cordero Rojo | 9,968 | 9,225 | 10,193 | 9,223 | 10,272 | 10,075 | 29,386 | 38,500 | ||||||||||||||||
Spring Creek | 5,502 | 4,729 | 3,714 | 5,082 | 5,338 | 4,993 | 13,945 | 19,336 | ||||||||||||||||
Decker (50% interest) | 432 | 426 | 218 | 369 | 392 | 451 | 1,076 | 1,402 | ||||||||||||||||
Total | 24,803 | 23,439 | 23,291 | 23,685 | 25,483 | 24,453 | 71,534 | 95,134 | ||||||||||||||||
? |
? | ? | ? | ? | |||||||||||||||||
CLOUD PEAK ENERGY ?INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data) | ||||||||||||||||||||
? | ||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||
2011 | ? | ? | 2010 | 2011 | ? | ? | 2010 | |||||||||||||
Revenues | $ | 406,950 | ? | $ | 372,364 | ? | $ | 1,151,174 | ? | $ | 1,024,960 | ? | ||||||||
Costs and expenses | ||||||||||||||||||||
Cost of product sold (exclusive of depreciation, | ||||||||||||||||||||
depletion, amortization and accretion, shown | ||||||||||||||||||||
separately | 306,533 | 262,166 | 855,551 | 719,007 | ||||||||||||||||
Depreciation and depletion | 24,289 | 25,997 | 58,537 | 75,212 | ||||||||||||||||
Amortization | ? | ? | ? | 3,197 | ||||||||||||||||
Accretion | 2,984 | 3,337 | 9,420 | 9,903 | ||||||||||||||||
Selling, general and administrative expenses | ? | 12,971 | ? | ? | 16,514 | ? | ? | 38,905 | ? | ? | 47,159 | ? | ||||||||
Total costs and expenses | ? | 346,777 | ? | ? | 308,014 | ? | ? | 962,413 | ? | ? | 854,478 | ? | ||||||||
Operating income | ? | 60,173 | ? | ? | 64,350 | ? | ? | 188,761 | ? | ? | 170,482 | ? | ||||||||
Other income (expense) | ||||||||||||||||||||
Interest income | 143 | 184 | 459 | 411 | ||||||||||||||||
Interest expense | (6,848 | ) | (11,404 | ) | (27,520 | ) | (36,186 | ) | ||||||||||||
Tax agreement (expense) benefit | 22,878 | (19,669 | ) | (19,855 | ) | (19,669 | ) | |||||||||||||
Other, net | ? | (103 | ) | ? | 84 | ? | ? | (34 | ) | ? | 123 | ? | ||||||||
Total other expense | ? | 16,070 | ? | ? | (30,805 | ) | ? | (46,950 | ) | ? | (55,321 | ) | ||||||||
Income before income tax provision and earnings | ||||||||||||||||||||
from unconsolidated affiliates | 76,243 | 33,545 | 141,811 | 115,161 | ||||||||||||||||
Income tax (expense) benefit | (52,162 | ) | (14,712 | ) | 2,025 | (30,212 | ) | |||||||||||||
Earnings from unconsolidated affiliates, net of tax | ? | 530 | ? | ? | 683 | ? | ? | 2,142 | ? | ? | 2,499 | ? | ||||||||
Net income | ? | 24,611 | ? | ? | 19,516 | ? | ? | 145,978 | ? | ? | 87,448 | ? | ||||||||
Less: Net income attributable to noncontrolling | ||||||||||||||||||||
interest | ? | ? | ? | 26,115 | ? | ? | ? | ? | 66,592 | ? | ||||||||||
Net income (loss) attributable to controlling interest | $ | 24,611 | ? | $ | (6,599 | ) | $ | 145,978 | ? | $ | 20,856 | ? | ||||||||
? | ||||||||||||||||||||
Earnings (loss) per common share attributable to | ||||||||||||||||||||
controlling interest: | ||||||||||||||||||||
Basic | $ | 0.41 | $ | (0.22 | ) | $ | 2.43 | $ | 0.68 | |||||||||||
Diluted | $ | 0.41 | ? | $ | (0.22 | ) | $ | 2.41 | ? | $ | 0.68 | ? | ||||||||
Weighted-average shares outstanding - basic | ? | 60,007 | ? | ? | 30,600 | ? | ? | 60,003 | ? | ? | 30,600 | ? | ||||||||
Weighted-average shares outstanding - diluted | ? | 60,645 | ? | ? | 30,600 | ? | ? | 60,606 | ? | ? | 30,600 | ? | ||||||||
? |
? | ? | ? | |||||||
CLOUD PEAK ENERGY INC. UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) | |||||||||
? | |||||||||
September 30, | December 31, | ||||||||
2011 | 2011 | ||||||||
ASSETS | (unaudited) | (audited) | |||||||
Current assets | |||||||||
Cash and cash equivalents | $ | 437,560 | $ | 340,101 | |||||
Restricted cash | 74,321 | 182,072 | |||||||
Accounts receivable, net | 97,462 | 65,173 | |||||||
Due from related parties | 1,382 | 434 | |||||||
Inventories | 72,691 | 64,970 | |||||||
Deferred income taxes | 22,794 | 21,552 | |||||||
Other assets | ? | 21,976 | ? | ? | 17,449 | ? | |||
Total current assets | ? | 728,186 | ? | ? | 691,751 | ? | |||
? | |||||||||
Non-current assets | |||||||||
Property, plant and equipment, net | 1,322,097 | 1,008,337 | |||||||
Goodwill | 35,634 | 35,634 | |||||||
Deferred income taxes | 142,592 | 140,985 | |||||||
Other assets | ? | 34,493 | ? | ? | 38,400 | ? | |||
Total assets | $ | 2,263,002 | ? | $ | 1,915,107 | ? | |||
? | |||||||||
LIABILITIES AND EQUITY | |||||||||
Current liabilities | |||||||||
Accounts payable | $ | 71,928 | $ | 81,975 | |||||
Royalties and production taxes | 144,354 | 127,038 | |||||||
Accrued expenses | 56,670 | 51,197 | |||||||
Current portion of tax agreement liability | 9,409 | 18,226 | |||||||
Current portion of federal coal lease obligations | 105,926 | 54,630 | |||||||
Other liabilities | ? | 4,847 | ? | ? | 4,880 | ? | |||
Total current liabilities | ? | 393,134 | ? | ? | 337,946 | ? | |||
? | |||||||||
Non-current liabilities | |||||||||
Tax agreement liability, net of current portion | 170,636 | 171,885 | |||||||
Senior notes | 595,977 | 595,684 | |||||||
Federal coal lease obligations, net of current portion | 186,119 | 63,659 | |||||||
Asset retirement obligations, net of current portion | 171,184 | 182,170 | |||||||
Other liabilities | ? | 37,288 | ? | ? | 32,564 | ? | |||
Total liabilities | ? | 1,554,338 | ? | ? | 1,383,908 | ? | |||
? | |||||||||
Equity | |||||||||
Common stock ($0.01 par value; 200,000 shares authorized; 60,930 | |||||||||
and 60,878 shares issued and outstanding at September 30,2011 and | |||||||||
December 31, 2011, respectively | 609 | 609 | |||||||
Additional paid-in capital | 533,813 | 502,952 | |||||||
Retained earnings | 188,274 | 42,296 | |||||||
Accumulated other comprehensive loss | ? | (14,032 | ) | ? | (14,658 | ) | |||
Total equity | ? | 708,664 | ? | ? | 531,199 | ? | |||
Total liabilities and equity | $ | 2,263,002 | ? | $ | 1,915,107 | ? | |||
? |
? | |||||||||
CLOUD PEAK ENERGY ?INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) | |||||||||
? | |||||||||
Nine Months Ended | |||||||||
September 30, | |||||||||
2011 | ? | ? | 2010 | ||||||
Cash flows from operating activities | |||||||||
Net income | $ | 145,978 | $ | 87,448 | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||
Depreciation and depletion | 58,537 | 75,212 | |||||||
Amortization | ? | 3,197 | |||||||
Accretion | 9,420 | 9,903 | |||||||
Earnings from unconsolidated affiliates | (2,142 | ) | (2,499 | ) | |||||
Distributions of income from unconsolidated affiliates | 2,000 | 15 | |||||||
Deferred income taxes | (9,781 | ) | 21,330 | ||||||
Tax agreement expense | 19,855 | 19,669 | |||||||
Stock compensation expense | 6,315 | 5,379 | |||||||
Other, net | 8,920 | 2,850 | |||||||
Changes in operating assets and liabilities: | |||||||||
Accounts receivable, net | (32,289 | ) | (4,733 | ) | |||||
Inventories | (7,561 | ) | (2,445 | ) | |||||
Due to or from related parties | (948 | ) | 5,442 | ||||||
Other assets | (4,539 | ) | (7,762 | ) | |||||
Accounts payable and accrued expenses | 23,561 | 51,837 | |||||||
Asset retirement obligations | ? | (4,851 | ) | ? | (4,005 | ) | |||
Net cash provided by operating activities | ? | 212,475 | ? | ? | 260,838 | ? | |||
? | |||||||||
Investing activities | |||||||||
Purchases of property, plant and equipment | (100,822 | ) | (56,129 | ) | |||||
Initial payment on federal coal leases | (69,407 | ) | ? | ||||||
Return of restricted cash | 107,887 | 80,180 | |||||||
Restricted cash deposit | ? | (218,397 | ) | ||||||
Proceeds from the sale of assets | ? | 545 | ? | ? | 1,469 | ? | |||
Net cash used in investing activities | ? | (61,797 | ) | ? | (192,877 | ) | |||
? | |||||||||
Financing activities | |||||||||
Principal payments on federal coal leases | (50,902 | ) | (47,276 | ) | |||||
Distributions to Rio Tinto | ? | (1,288 | ) | ||||||
Other | ? | (2,317 | ) | ? | ? | ? | |||
Net cash used in financing activities | ? | (53,219 | ) | ? | (48,564 | ) | |||
Net increase (decrease) in cash and cash equivalents | 97,459 | 19,397 | |||||||
Cash and cash equivalents at beginning of period | ? | 340,101 | ? | ? | 268,316 | ? | |||
Cash and cash equivalents at end of period | $ | 437,560 | ? | $ | 287,713 | ? | |||
? |
? | |||||||||||||||||||
CLOUD PEAK ENERGY INC. AND SUBSIDIARIES RECONCILIATION OF NON-GAAP MEASURES (in millions, except per share data) | |||||||||||||||||||
? | |||||||||||||||||||
Adjusted EBITDA | |||||||||||||||||||
? | ? | ? | ? | ? | ? | ? | |||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||
2011 | 2010 | 2011 | 2010 | ||||||||||||||||
Net income | $ | 24.6 | ? | $ | 19.5 | ? | $ | 146.0 | ? | $ | 87.4 | ? | |||||||
Interest income | (0.1 | ) | (0.2 | ) | (0.5 | ) | (0.4 | ) | |||||||||||
Interest expense | 6.8 | 11.4 | 27.5 | 36.2 | |||||||||||||||
Income tax expense (benefit) | 52.2 | 14.7 | (2.0 | ) | 30.2 | ||||||||||||||
Depreciation and depletion | 24.3 | 26.0 | 58.5 | 75.2 | |||||||||||||||
Amortization1 | ? | ? | ? | 3.2 | |||||||||||||||
Accretion | ? | 3.0 | ? | ? | 3.4 | ? | ? | 9.4 | ? | ? | 9.9 | ? | |||||||
EBITDA | $ | 110.8 | $ | 74.8 | $ | 238.9 | $ | 241.7 | |||||||||||
Expired significant broker contract1 | ? | ? | ? | (8.3 | ) | ||||||||||||||
Tax agreement expense (benefit) | ? | (22.9 | ) | ? | 19.7 | ? | ? | 19.9 | ? | ? | 19.7 | ? | |||||||
Adjusted EBITDA | $ | 87.9 | ? | $ | 94.5 | ? | $ | 258.8 | ? | $ | 253.1 | ? | |||||||
? |
1 | ? | ? |
|
? | |||||||||||||||||||
Adjusted EPS | |||||||||||||||||||
? | ? | ? | ? | ? | ? | ? | |||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||
2011 | 2010 | 2011 | 2010 | ||||||||||||||||
Diluted earnings (loss) per common share attributable | |||||||||||||||||||
to controlling interest | $ | 0.41 | $ | (0.22 | ) | $ | 2.41 | $ | 0.68 | ||||||||||
Expired significant broker contract | ? | ? | ? | (0.11 | ) | ||||||||||||||
Tax agreement expense (benefit) | (0.38 | ) | 0.64 | 0.33 | 0.64 | ||||||||||||||
Change in net value of deferred tax assets | ? | 0.58 | ? | ? | 0.18 | ? | ? | (0.96 | ) | ? | 0.18 | ? | |||||||
Adjusted EPS | $ | 0.61 | ? | $ | 0.60 | ? | $ | 1.78 | ? | $ | 1.39 | ? | |||||||
Weighted-average dilutive shares outstanding | 60.6 | 30.6 | 60.6 | 30.6 |
Cloud Peak Energy Inc.
Karla Kimrey, 720-566-2900
Vice
President, Investor Relations