Contura Announces Third Quarter 2018 Results
BRISTOL, Tenn., Nov. 14, 2018 /PRNewswire/ -- Contura Energy Inc. (NYSE: CTRA), a leading U.S. coal supplier, today reported results for the third quarter and year-to-date through September 30, 2018.
Highlights include:
- Net Income from continuing operations of $14 million for the third quarter 2018 compared with $10 million in the same period last year(1)
- Adjusted EBITDA of $39 million for the quarter compared with $42 million in the same period last year(1)
- Merger with Alpha officially closed on November 9, 2018, creating the largest metallurgical coal supplier in the U.S. The third quarter results disclosed herein do not include any effects of the Alpha transaction
- The company now trades on the NYSE under the symbol "CTRA"
- Successfully refinanced the company's and legacy Alpha's term loans with a new 7-year, $550 million term loan credit facility
- Upsized the asset-backed revolving credit facility from $125 million to $225 million
| (millions, except per share) | ||||
| Three months ended Sept. 30, | Nine months ended Sept. 30, | |||
| 2018(1) | 2017(1) | 2018(1) | 2017(1) | |
| Net income(2) | $14.0 | $9.7 | $147.0 | $59.1 |
| Net income(2) per diluted share | $1.35 | $0.89 | $14.23 | $5.45 |
| Adjusted EBITDA(3) | $38.8 | $41.5 | $223.9 | $234.1 |
| Operating cash flow(4) | $60.7 | $73.7 | $176.3 | $259.9 |
| Capital expenditures | $18.4 | $17.8 | $56.7 | $48.3 |
| Tons of coal sold | 3.9 | 3.8 | 12.1 | 12.2 |
| 1. Excludes discontinued operations. | ||||
| 2. From continuing operations. | ||||
| 3. These are non-GAAP financial measures. A reconciliation of Net Income to Adjusted EBITDA is included in tables accompanying the financial schedules. | ||||
| 4. Includes discontinued operations. | ||||
"Beyond delivering another positive quarter, largely supported through continued success of our robust export platform, we are very pleased to have brought to a successful completion both the merger with Alpha and the refinancing of our term loans. These actions provide our company the scalability, both operationally and financially, to continue to thrive and return meaningful value to our shareholders," said Kevin Crutchfield, chief executive officer. "Our focus will now shift to achieving the operational, marketing and cost synergies we have targeted through this transaction and I am confident that we have the right team in place to complete the integration efficiently."
Financial Performance
Total revenues in the third quarter were $447.9 million. Coal revenues in the third quarter, excluding freight and handling fulfillment revenues, were $352.0 million, with Central Appalachia (CAPP) coal revenues accounting for $115.1 million, Trading and Logistics (T&L) accounting for $177.8 million, and Northern Appalachia (NAPP) coal revenues totaling $59.1 million. Comparatively, in the third quarter 2017, CAPP revenues were $108.6 million, T&L revenues were $144.9 million, and NAPP revenues were $65.7 million of the $319.2 million in total coal revenues.
CAPP coal shipments for the third quarter 2018 were 1.0 million tons at an average per-ton realization of $116.62, compared to 1.0 million tons at $105.86 per ton in the prior year third quarter. Contura shipped 1.3 million tons of NAPP coal during the quarter at an average per-ton realization of $44.88, down from 1.5 million tons at $44.57 per ton in the third quarter 2017. As previously announced, NAPP volumes in the quarter were impacted by geologic conditions, including a period of reduced coal seam thickness and localized soft clay issues, which have been resolved. In the T&L segment, coal volumes increased from 1.3 million tons in the prior year period to 1.6 million tons in the third quarter 2018, while the average T&L realization increased marginally from $112.48 per ton in the prior year's third quarter to $112.81 per ton during third quarter 2018.
Freight and handling fulfillment revenues and other revenues in the third quarter 2018 were $91.0 million and $4.9 million, respectively, compared with $61.5 million and $1.9 million, respectively, in the prior year period.
Total costs and expenses during the third quarter 2018 were $424.0 million and cost of coal sales was $307.7 million, compared with $372.6 million and $270.8 million, respectively, in the same period a year ago. The cost of coal sales in CAPP for the quarter averaged $86.38 per ton, up from $74.02 in the prior year period. CAPP costs include $1.04 per ton in idle costs. The main drivers of increased costs versus expectations were incremental use of purchased coal, which increased the cost of coal sales per ton by approximately $3.50, and higher supply costs, which increased costs by approximately $2.00 per ton. Also, higher sales-related costs resulting from strong metallurgical coal realizations continued to contribute to higher costs per ton.
NAPP costs at $46.37 per ton were impacted by the aforementioned geologic conditions experienced during the quarter and a longwall move in September, both of which reduced production volume. NAPP costs include idle costs of $1.31 per ton. In the year ago period, NAPP cost of coal sales averaged $44.51 per ton. In the T&L segment, the cost of coal sales during the third quarter 2018 was $102.42 per ton versus $100.45 per ton in the third quarter 2017.
Selling, general and administrative (SG&A) expenses for the third quarter 2018 were $12.4 million, down from $15.9 million in the year ago period. The year-ago period included approximately $5.0 million in non-cash stock compensation and $1.7 million in charges related to the company's incentive plan. Included in the SG&A costs for the third quarter 2018 are approximately $1.8 million in non-cash stock compensation and accrued expenses of $2.7 million related to incentive bonus plans. Depreciation, depletion and amortization was $11.1 million during the third quarter 2018 and amortization of acquired intangibles was $1.2 million, compared with $7.5 million and $14.9 million, respectively, in the same period last year, excluding discontinued operations.
Contura reported net income from continuing operations of $14.0 million, or $1.35 per diluted share, for the third quarter 2018. In the third quarter 2017, the company had net income from continuing operations of $9.7 million or $0.89 per diluted share.
Total adjusted EBITDA was $38.8 million for the third quarter, compared with $41.5 million in the prior year quarter, adjusted to remove the impact of discontinued operations.
Liquidity and Capital Resources
Cash provided by operating activities for the third quarter 2018, including discontinued operations, was $60.7 million and capital expenditures for the third quarter were $18.4 million. In the prior year period, the cash provided by operating activities was $73.7 million and capital expenditures were $17.8 million. Capital expenditures of $3.1 million from discontinued operations are excluded from the prior year total.
At the end of September 2018, Contura had $238.1 million in unrestricted cash. Total long-term debt, including the current portion of long-term debt as of September 30, 2018, was approximately $366.6 million. At the end of the quarter, the company had total liquidity of $334.4 million, including cash and cash equivalents of $238.1 million and $96.3 million of unused commitments available under the Asset-Based Revolving Credit Facility. As of September 30, 2018, the company had no borrowings and $28.7 million in letters of credit outstanding under the Asset-Based Revolving Credit Facility.
Alpha Merger Update
On November 9, 2018, the merger between Contura Energy and ANR, Inc. and Alpha Natural Resources Holdings, Inc. (together, "Alpha") was completed, creating the largest metallurgical coal supplier in the U.S. complemented by a cost-competitive thermal coal portfolio.
In conjunction with the transaction closing, Contura shares were listed and began trading on the New York Stock Exchange (NYSE) under the symbol "CTRA." Concurrently, the company refinanced its and legacy Alpha's term loans with a new $550 million, 7-year term loan credit facility. The interest rate will be LIBOR plus 500bps. In addition, the company upsized its asset-backed revolving credit facility from $125 million to $225 million.
As previously announced, the merger is expected to generate synergies in the range of $30 million to $50 million annually.
Other Business Updates
On December 11, 2017, the company announced that its wholly-owned subsidiary, Contura Coal West, LLC, completed a transaction to sell the Eagle Butte and Belle Ayr mines in Wyoming, along with related coal reserves, equipment, infrastructure and other real properties, to Blackjewel L.L.C. The public comment period for the permits is currently in process, and the final transfer is expected to be completed prior to year-end 2018.
2018 Full-Year Guidance
None of the guidance ranges described herein include any effects of the transaction with Alpha, which closed on November 9, 2018. We expect to provide full-year 2019 guidance for the combined company in early 2019.
The company expects total 2018 coal shipments to be unchanged in the range of 15.4 million to 16.8 million tons. CAPP metallurgical coal guidance remains at 3.7 million to 4.1 million tons with the T&L segment remaining at 5.6 million to 6.2 million tons. NAPP shipments are expected to be between 6.1 million and 6.5 million tons in 2018.
As of October 25, 2018, 85% of the midpoint of anticipated 2018 CAPP coal shipments were committed and priced at an average expected per-ton realization of $130.13, with the remaining 15% committed and priced based on various indices. Based on the midpoint of guidance, 90% of anticipated 2018 NAPP coal shipments were committed and priced at an average expected per-ton realization of $44.45.
Contura is increasing guidance for 2018 CAPP cost of coal sales per ton to $77.00 to $81.00 to account for increased purchase coal tons and continued strength in the metallurgical coal markets leading to higher realizations and subsequently higher sales related expenses than originally anticipated. NAPP cost estimates remain in the range of $35.00 to $38.00 per ton. Additionally, costs related to the company's idle operations are expected to be between $10 million and $12 million for the full-year 2018.
The margin from Contura's T&L platform is expected to average between $9 to $15 per ton for the full-year 2018.
Contura's SG&A guidance is estimated at $32 million to $36 million, excluding one-time and non-recurring items, annual incentive bonuses and stock compensation. Capital expenditure guidance is unchanged in the range of $72 million to $82 million. Depreciation, depletion and amortization for 2018 is expected to be between $40 million and $50 million. The company expects 2018 cash interest expense to be between $25 million and $27 million.
None of the guidance ranges described below include any effects of the transaction with Alpha, which closed on November 9, 2018.
| in millions of tons | Low | High | ||
| CAPP | 3.7 | 4.1 | ||
| NAPP | 6.1 | 6.5 | ||
| Total Production | 9.8 | 10.6 | ||
| Contura Trading & Logistics | 5.6 | 6.2 | ||
| Total Shipments | 15.4 | 16.8 | ||
| Committed/Priced1,2,3 | Committed | Average Price | ||
| CAPP4 | 85 | % | $130.13 | |
| NAPP | 90 | % | $44.45 | |
| Committed/Unpriced1,3 | Committed | |||
| CAPP4 | 15 | % | ||
| Costs per ton | Low | High | ||
| CAPP | $77 | $81 | ||
| NAPP | $35 | $38 | ||
| Margin per ton | Low | High | ||
| Contura Trading & Logistics | $9 | $15 | ||
| In millions (except taxes) | Low | High | ||
| SG&A5 | $32 | $36 | ||
| Idle Operations Expense | $10 | $12 | ||
| Cash Interest Expense | $25 | $27 | ||
| DD&A | $40 | $50 | ||
| Capital Expenditures | $72 | $82 | ||
| Tax Rate | 0 | % | 5 | % |
Notes:
- Based on committed and priced coal shipments as of October 25, 2018. Committed percentage based on the midpoint of shipment guidance range.
- 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.
- Includes estimates of future coal shipments based upon contract terms and anticipated delivery schedules. Actual coal shipments may vary from these estimates.
- CAPP committed tons and price information represent captive Contura production and does not include Trading and Logistics.
- Excludes expenses related to non-cash stock compensation, accrual of incentive bonus and non-recurring business development expenses.
ABOUT CONTURA ENERGY
Contura Energy (NYSE: CTRA) is a Tennessee-based coal supplier with affiliate mining operations across major coal basins in Pennsylvania, Virginia and West Virginia. With customers across the globe, high-quality reserves and significant port capacity, Contura Energy reliably supplies both metallurgical coal to produce steel and thermal coal to generate power. For more information, visit www.conturaenergy.com.
FORWARD-LOOKING STATEMENTS
This news release includes forward-looking statements. These forward-looking statements are based on Contura's expectations and beliefs concerning future events and involve risks and uncertainties that may cause actual results to differ materially from current expectations. These factors are difficult to predict accurately and may be beyond Contura's control. Forward-looking statements in this news release or elsewhere speak only as of the date made. New uncertainties and risks arise from time to time, and it is impossible for Contura to predict these events or how they may affect Contura. Except as required by law, Contura has no duty to, and does not intend to, update or revise the forward-looking statements in this news release or elsewhere after the date this release is issued. In light of these risks and uncertainties, investors should keep in mind that results, events or developments discussed in any forward-looking statement made in this news release may not occur.
INVESTOR CONTACT
investorrelations@conturaenergy.com
Alex Rotonen, CFA
423.573.0396
MEDIA CONTACTS
corporatecommunications@conturaenergy.com
Rick Axthelm
423.573.0304
Emily O'Quinn
423.573.0369
FINANCIAL TABLES FOLLOW
Use of Non-GAAP Measures
In addition to the results prepared in accordance with generally accepted accounting principles in the United States (GAAP) provided throughout this press release, Contura has presented the following non-GAAP financial measure: Adjusted EBITDA. The company uses Adjusted EBITDA to measure the operating performance of its segments and allocate resources to the segments. This non-GAAP financial measure excludes various items detailed in the attached reconciliation tables.
The definition of this non-GAAP measure may be changed periodically by management to adjust for significant items important to an understanding of operating trends. This measure is not intended to replace financial performance measures determined in accordance with GAAP. Rather, it is presented as a supplemental measure of the company's performance that management finds useful in assessing the company's financial performance and believes is useful to securities analysts, investors and others in assessing the company's performance over time. Moreover, this measure is not calculated identically by all companies and therefore may not be comparable to similarly titled measures used by other companies.
| Contura Energy Inc. AND SUBSIDIARIES | |||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) | |||||||||||||||
| (Amounts in thousands, except share and per share data) | |||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
| 2018 | 2017 | 2018 | 2017 | ||||||||||||
| Revenues: | |||||||||||||||
| Coal revenues | $ | 443,005 | $ | 319,178 | $ | 1,446,538 | $ | 1,100,078 | |||||||
| Freight and handling revenues | — | 61,492 | — | 191,411 | |||||||||||
| Other revenues | 4,866 | 1,868 | 12,583 | 5,836 | |||||||||||
| Total revenues | 447,871 | 382,538 | 1,459,121 | 1,297,325 | |||||||||||
| Costs and expenses: | |||||||||||||||
| Cost of coal sales (exclusive of items shown separately below) | 307,689 | 270,838 | 936,817 | 842,158 | |||||||||||
| Freight and handling costs | 91,041 | 61,492 | 268,017 | 191,411 | |||||||||||
| Depreciation, depletion and amortization | 11,141 | 7,504 | 33,951 | 25,292 | |||||||||||
| Amortization of acquired intangibles, net | 1,158 | 14,868 | 12,468 | 49,111 | |||||||||||
| Selling, general and administrative expenses (exclusive of depreciation, depletion and amortization shown separately above) | 12,382 | 15,946 | 43,490 | 56,094 | |||||||||||
| Merger related costs | 1,181 | — | 5,064 | — | |||||||||||
| Secondary offering costs | — | 1,061 | — | 4,499 | |||||||||||
| Total other operating (income) loss: | |||||||||||||||
| Gain on disposal of assets | (601) | — | (17,103) | — | |||||||||||
| Mark-to-market adjustment for acquisition-related obligations | — | 839 | — | 3,221 | |||||||||||
| Gain on settlement of acquisition-related obligations | (118) | — | (410) | (9,200) | |||||||||||
| Other expenses | 150 | 8 | 438 | 89 | |||||||||||
| Total costs and expenses | 424,023 | 372,556 | 1,282,732 | 1,162,675 | |||||||||||
| Income from operations | 23,848 | 9,982 | 176,389 | 134,650 | |||||||||||
| Other income (expense): | |||||||||||||||
| Interest expense | (8,554) | (8,466) | (26,538) | (28,080) | |||||||||||
| Interest income | 507 | 43 | 829 | 116 | |||||||||||
| Loss on early extinguishment of debt | — | — | — | (38,701) | |||||||||||
| Equity loss in affiliates | (1,624) | (411) | (2,857) | (2,120) | |||||||||||
| Bargain purchase gain | — | 369 | — | 1,011 | |||||||||||
| Miscellaneous income, net | (154) | (158) | (737) | (350) | |||||||||||
| Total other expense, net | (9,825) | (8,623) | (29,303) | (68,124) | |||||||||||
| Income from continuing operations before income taxes | 14,023 | 1,359 | 147,086 | 66,526 | |||||||||||
| Income tax (expense) benefit | (12) | 8,371 | (133) | (7,440) | |||||||||||
| Net income from continuing operations | 14,011 | 9,730 | 146,953 | 59,086 | |||||||||||
| Discontinued operations: | |||||||||||||||
| (Loss) income from discontinued operations before income taxes | (2,117) | 3,724 | (4,330) | (276) | |||||||||||
| Income tax expense from discontinued operations | — | (3,295) | — | (929) | |||||||||||
| (Loss) income from discontinued operations | (2,117) | 429 | (4,330) | (1,205) | |||||||||||
| Net income | $ | 11,894 | $ | 10,159 | $ | 142,623 | $ | 57,881 | |||||||
| Basic income (loss) per common share: | |||||||||||||||
| Income from continuing operations | $ | 1.45 | $ | 0.95 | $ | 15.30 | $ | 5.74 | |||||||
| (Loss) income from discontinued operations | (0.22) | 0.04 | (0.45) | (0.12) | |||||||||||
| Net income | $ | 1.23 | $ | 0.99 | $ | 14.85 | $ | 5.62 | |||||||
| Diluted income (loss) per common share | |||||||||||||||
| Income from continuing operations | $ | 1.35 | $ | 0.89 | $ | 14.23 | $ | 5.45 | |||||||
| (Loss) income from discontinued operations | (0.20) | 0.04 | (0.42) | (0.11) | |||||||||||
| Net income | $ | 1.15 | $ | 0.93 | $ | 13.81 | $ | 5.34 | |||||||
| Weighted average shares - basic | 9,633,164 | 10,277,974 | 9,602,860 | 10,298,889 | |||||||||||
| Weighted average shares - diluted | 10,384,513 | 10,896,856 | 10,328,031 | 10,832,989 | |||||||||||
| Contura Energy Inc. AND SUBSIDIARIES | |||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) | |||||||
| (Amounts in thousands, except share and per share data) | |||||||
| September 30, 2018 | December 31, 2017 | ||||||
| Assets | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 238,129 | $ | 141,924 | |||
| Trade accounts receivable, net of allowance for doubtful accounts of $0 as of September 30, 2018 and December 31, 2017 | 138,697 | 127,326 | |||||
| Inventories, net | 58,496 | 69,561 | |||||
| Assets held for sale | — | 171 | |||||
| Short-term restricted cash | 8,853 | 11,615 | |||||
| Short-term deposits | 6,551 | 12,366 | |||||
| Prepaid expenses and other current assets | 45,915 | 59,693 | |||||
| Current assets - discontinued operations | 22,179 | 40,498 | |||||
| Total current assets | 518,820 | 463,154 | |||||
| Property, plant, and equipment, net | 218,347 | 196,579 | |||||
| Other acquired intangibles, net of accumulated amortization of $20,760 and $28,662 as of September 30, 2018 and December 31, 2017 | 5,990 | 18,458 | |||||
| Long-term restricted cash | 36,882 | 40,421 | |||||
| Long-term deposits | 9,237 | 3,607 | |||||
| Deferred income taxes | 78,744 | 78,744 | |||||
| Other non-current assets | 38,605 | 28,005 | |||||
| Non-current assets - discontinued operations | — | 7,632 | |||||
| Total assets | $ | 906,625 | $ | 836,600 | |||
| Liabilities and Stockholders' Equity | |||||||
| Current liabilities: | |||||||
| Current portion of long-term debt | $ | 4,791 | $ | 10,730 | |||
| Trade accounts payable | 79,360 | 76,319 | |||||
| Acquisition-related obligations - current | 13,670 | 15,080 | |||||
| Liabilities held for sale | 1,345 | 27,161 | |||||
| Accrued expenses and other current liabilities | 56,020 | 58,771 | |||||
| Current liabilities - discontinued operations | 20,850 | 54,114 | |||||
| Total current liabilities | 176,036 | 242,175 | |||||
| Long-term debt | 361,770 | 361,973 | |||||
| Acquisition-related obligations - long-term | 11,997 | 20,332 | |||||
| Asset retirement obligations | 55,821 | 52,434 | |||||
| Other non-current liabilities | 61,686 | 59,276 | |||||
| Non-current liabilities - discontinued operations | 103 | 7,762 | |||||
| Total liabilities | 667,413 | 743,952 | |||||
| Commitments and Contingencies | |||||||
| Stockholders' Equity | |||||||
| Preferred stock - par value $0.01, 2.0 million shares authorized, none issued | — | — | |||||
| Common stock - par value $0.01, 20.0 million shares authorized, 10.8 million issued and 9.9 million outstanding at September 30, 2018 and 10.7 million issued and 9.9 million outstanding at December 31, 2017 | 108 | 108 | |||||
| Additional paid-in capital | 49,407 | 40,616 | |||||
| Accumulated other comprehensive loss | (1,959) | (1,948) | |||||
| Treasury stock, at cost: 0.9 million shares at September 30, 2018 and 0.8 million shares at December 31, 2017 | (54,931) | (50,092) | |||||
| Retained earnings | 246,587 | 103,964 | |||||
| Total stockholders' equity | 239,212 | 92,648 | |||||
| Total liabilities and stockholders' equity | $ | 906,625 | $ | 836,600 | |||
| Contura Energy Inc. AND SUBSIDIARIES | |||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) | |||||||
| (Amounts in thousands) | |||||||
| Nine Months Ended September 30, | |||||||
| 2018 | 2017 | ||||||
| Operating activities: | |||||||
| Net income | $ | 142,623 | $ | 57,881 | |||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
| Depreciation, depletion and amortization | 33,951 | 49,431 | |||||
| Amortization of acquired intangibles, net | 12,468 | 49,111 | |||||
| Accretion of acquisition-related obligations discount | 4,165 | 5,954 | |||||
| Amortization of debt issuance costs and accretion of debt discount | 2,264 | 2,132 | |||||
| Mark-to-market adjustment for acquisition-related obligations | — | 3,221 | |||||
| Gain on settlement of acquisition-related obligations | (410) | (9,200) | |||||
| Gain on disposal of assets | (17,103) | (513) | |||||
| Bargain purchase gain | — | (1,011) | |||||
| Accretion of asset retirement obligations | 5,545 | 16,573 | |||||
| Employee benefit plans, net | 6,551 | 8,459 | |||||
| Loss on early extinguishment of debt | — | 38,701 | |||||
| Stock-based compensation | 9,472 | 11,946 | |||||
| Equity in loss of affiliates | 2,857 | 2,106 | |||||
| Other, net | 1,020 | — | |||||
| Changes in operating assets and liabilities | (27,087) | 25,141 | |||||
| Net cash provided by operating activities | 176,316 | 259,932 | |||||
| Investing activities: | |||||||
| Capital expenditures | (56,722) | (56,403) | |||||
| Payments on disposal of assets | (10,250) | — | |||||
| Proceeds on disposal of assets | 647 | 2,449 | |||||
| Capital contributions to equity affiliates | (3,759) | (4,160) | |||||
| Purchase of additional ownership interest in equity affiliate | — | (13,293) | |||||
| Other, net | (1,455) | (408) | |||||
| Net cash used in investing activities | (71,539) | (71,815) | |||||
| Financing activities: | |||||||
| Proceeds from borrowings on debt | — | 396,000 | |||||
| Principal repayments of debt | (6,323) | (368,500) | |||||
| Principal repayments of capital lease obligations | (221) | (798) | |||||
| Debt issuance costs | (466) | (14,385) | |||||
| Debt extinguishment costs | — | (25,036) | |||||
| Debt amendment costs | — | (4,520) | |||||
| Common stock repurchases and related expenses | (4,839) | (17,445) | |||||
| Special dividend paid | — | (92,786) | |||||
| Principal repayments of notes payable | (3,094) | (1,093) | |||||
| Other, net | 70 | 11 | |||||
| Net cash used in financing activities | (14,873) | (128,552) | |||||
| Net increase in cash and cash equivalents and restricted cash | 89,904 | 59,565 | |||||
| Cash and cash equivalents and restricted cash at beginning of period | 193,960 | 171,289 | |||||
| Cash and cash equivalents and restricted cash at end of period | $ | 283,864 | $ | 230,854 | |||
| Supplemental cash flow information: | |||||||
| Cash paid for interest | $ | 20,417 | $ | 34,091 | |||
| Cash paid for taxes | $ | 6 | $ | 13,328 | |||
| Cash received for income tax refunds | $ | 13,457 | $ | — | |||
| Supplemental disclosure of non-cash investing and financing activities: | |||||||
| Capital leases and capital financing - equipment | $ | 414 | $ | 735 | |||
| Accrued capital expenditures | $ | 7,725 | $ | 9,169 | |||
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 Condensed Consolidated Statements of Cash Flows.
| Nine Months Ended September 30, | |||||||
| 2018 | 2017 | ||||||
| Cash and cash equivalents | $ | 238,129 | $ | 173,490 | |||
| Short-term restricted cash | 8,853 | — | |||||
| Long-term restricted cash | 36,882 | 57,364 | |||||
| Total cash and cash equivalents and restricted cash shown in the Condensed Consolidated Statements of Cash Flows | $ | 283,864 | $ | 230,854 | |||
| Contura Energy Inc. AND SUBSIDIARIES | |||||||||||||||||||
| ADJUSTED EBITDA RECONCILIATION | |||||||||||||||||||
| (Amounts in thousands) | |||||||||||||||||||
| Reconciliation of Non-GAAP measures: | |||||||||||||||||||
| Three Months Ended September 30, 2018 | |||||||||||||||||||
| CAPP | NAPP | Trading and Logistics | All Other | Consolidated | |||||||||||||||
| Net income (loss) from continuing operations | $ | 24,787 | $ | (4,765) | $ | 15,749 | $ | (21,760) | $ | 14,011 | |||||||||
| Interest expense | 4 | (490) | — | 9,040 | 8,554 | ||||||||||||||
| Interest income | (7) | (12) | — | (488) | (507) | ||||||||||||||
| Income tax expense | — | — | — | 12 | 12 | ||||||||||||||
| Depreciation, depletion and amortization | 5,658 | 5,298 | — | 185 | 11,141 | ||||||||||||||
| Merger related costs | — | — | — | 1,181 | 1,181 | ||||||||||||||
| Non-cash stock compensation expense | — | — | — | 1,885 | 1,885 | ||||||||||||||
| Gain on settlement of acquisition-related obligations | — | — | — | (118) | (118) | ||||||||||||||
| Accretion expense | 548 | 941 | — | — | 1,489 | ||||||||||||||
| Amortization of acquired intangibles, net | — | — | 1,158 | — | 1,158 | ||||||||||||||
| Adjusted EBITDA (1) | $ | 30,990 | $ | 972 | $ | 16,907 | $ | (10,063) | $ | 38,806 | |||||||||
| (1) Pursuant to the PRB divestiture and classification as a discontinued operation, the Company is no longer presenting a PRB reporting segment. The former PRB reporting segment had Adjusted EBITDA of ($1,102) for the three months ended September 30, 2018. | |||||||||||||||||||
| Segment Information: | ||||||||||||||||||||
| Three Months Ended September 30, 2018 | ||||||||||||||||||||
| CAPP | NAPP | Trading and Logistics | All Other | Consolidated | ||||||||||||||||
| Total revenues | $ | 115,280 | $ | 60,944 | $ | 270,985 | $ | 662 | $ | 447,871 | ||||||||||
| Depreciation, depletion, and amortization | $ | 5,658 | $ | 5,298 | $ | — | $ | 185 | $ | 11,141 | ||||||||||
| Amortization of acquired intangibles, net | $ | — | $ | — | $ | 1,158 | $ | — | $ | 1,158 | ||||||||||
| Adjusted EBITDA | $ | 30,990 | $ | 972 | $ | 16,907 | $ | (10,063) | $ | 38,806 | ||||||||||
| Capital expenditures | $ | 7,984 | $ | 10,270 | $ | — | $ | 119 | $ | 18,373 | ||||||||||
| Reconciliation of Non-GAAP measures: | |||||||||||||||||||
| Nine Months Ended September 30, 2018 | |||||||||||||||||||
| CAPP | NAPP | Trading and Logistics | All Other | Consolidated | |||||||||||||||
| Net income (loss) from continuing operations | $ | 147,787 | $ | 1,440 | $ | 70,643 | $ | (72,917) | $ | 146,953 | |||||||||
| Interest expense | 316 | (839) | — | 27,061 | 26,538 | ||||||||||||||
| Interest income | (17) | (24) | (18) | (770) | (829) | ||||||||||||||
| Income tax expense | — | — | — | 133 | 133 | ||||||||||||||
| Depreciation, depletion and amortization | 17,636 | 15,761 | — | 554 | 33,951 | ||||||||||||||
| Merger related costs | — | — | — | 5,064 | 5,064 | ||||||||||||||
| Management restructuring costs (1) | — | — | — | 2,659 | 2,659 | ||||||||||||||
| Non-cash stock compensation expense | — | — | — | 8,240 | 8,240 | ||||||||||||||
| Gain on settlement of acquisition-related obligations | — | — | — | (410) | (410) | ||||||||||||||
| Gain on sale of disposal group (2) | (16,386) | — | — | — | (16,386) | ||||||||||||||
| Accretion expense | 2,722 | 2,823 | — | — | 5,545 | ||||||||||||||
| Amortization of acquired intangibles, net | — | — | 12,468 | — | 12,468 | ||||||||||||||
| Adjusted EBITDA (3) | $ | 152,058 | $ | 19,161 | $ | 83,093 | $ | (30,386) | $ | 223,926 | |||||||||
| (1) Management restructuring costs are related to severance expense associated with senior management changes in the nine months ended September 30, 2018. |
| (2) During the fourth quarter of 2017, the Company entered into an asset purchase agreement to sell a disposal group (comprised of property, plant and equipment and associated asset retirement obligations) within our CAPP segment. From the date the Company entered into the asset purchase agreement through the transaction close date, the property, plant and equipment and associated asset retirement obligations were classified as held for sale in amounts representing the fair value of the disposal group. Upon permit transfer, the transaction closed on April 2, 2018. The Company paid $10,000 in connection with the transaction, which was paid into escrow on March 27, 2018 and transferred to the buyer at the transaction close date, and expects to pay a series of additional cash payments in the aggregate amount of $1,500, per the terms stated in the agreement, and recorded a gain on sale of $16,386 within gain on disposal of assets within the Condensed Consolidated Statements of Operations. |
| (3) Pursuant to the PRB divestiture and classification as a discontinued operation, the Company is no longer presenting a PRB reporting segment. The former PRB reporting segment had Adjusted EBITDA of ($3,470) for the nine months ended September 30, 2018. |
| Segment Information: | ||||||||||||||||||||
| Nine Months Ended September 30, 2018 | ||||||||||||||||||||
| CAPP | NAPP | Trading and Logistics | All Other | Consolidated | ||||||||||||||||
| Total revenues | $ | 402,823 | $ | 196,173 | $ | 857,230 | $ | 2,895 | $ | 1,459,121 | ||||||||||
| Depreciation, depletion, and amortization | $ | 17,636 | $ | 15,761 | $ | — | $ | 554 | $ | 33,951 | ||||||||||
| Amortization of acquired intangibles, net | $ | — | $ | — | $ | 12,468 | $ | — | $ | 12,468 | ||||||||||
| Adjusted EBITDA | $ | 152,058 | $ | 19,161 | $ | 83,093 | $ | (30,386) | $ | 223,926 | ||||||||||
| Capital expenditures | $ | 23,829 | $ | 32,611 | $ | — | $ | 282 | $ | 56,722 | ||||||||||
| Reconciliation of Non-GAAP measures: | |||||||||||||||||||
| Three Months Ended September 30, 2017 | |||||||||||||||||||
| CAPP | NAPP | Trading and Logistics | All Other | Consolidated | |||||||||||||||
| Net income (loss) from continuing operations | $ | 30,238 | $ | (3,300) | $ | 613 | $ | (17,821) | $ | 9,730 | |||||||||
| Interest expense | 1 | (264) | — | 8,729 | 8,466 | ||||||||||||||
| Interest income | (3) | — | — | (40) | (43) | ||||||||||||||
| Income tax expense | — | — | — | (8,371) | (8,371) | ||||||||||||||
| Depreciation, depletion and amortization | 2,736 | 4,544 | — | 224 | 7,504 | ||||||||||||||
| Non-cash stock compensation expense | — | — | 171 | 5,143 | 5,314 | ||||||||||||||
| Mark-to-market adjustment - acquisition-related obligations | — | — | — | 839 | 839 | ||||||||||||||
| Secondary offering costs | — | — | — | 1,061 | 1,061 | ||||||||||||||
| Bargain purchase gain | — | — | — | (369) | (369) | ||||||||||||||
| Accretion expense | 1,461 | 1,041 | — | — | 2,502 | ||||||||||||||
| Amortization of acquired intangibles, net | — | — | 14,868 | — | 14,868 | ||||||||||||||
| Adjusted EBITDA (1) (2) | $ | 34,433 | $ | 2,021 | $ | 15,652 | $ | (10,605) | $ | 41,501 | |||||||||
| (1) The Company's Adjusted EBITDA calculation has been modified to add back non-cash stock compensation expense to align with industry peer group methodology. |
| (2) Pursuant to the PRB divestiture and classification as a discontinued operation, the Company is no longer presenting a PRB reporting segment. The former PRB reporting segment had Adjusted EBITDA of $14,528 for the three months ended September 30, 2017. |
| Segment Information: | ||||||||||||||||||||
| Three Months Ended September 30, 2017 | ||||||||||||||||||||
| CAPP | NAPP | Trading and Logistics | All Other | Consolidated | ||||||||||||||||
| Total revenues | $ | 108,996 | $ | 66,625 | $ | 206,749 | $ | 168 | $ | 382,538 | ||||||||||
| Depreciation, depletion, and amortization | $ | 2,736 | $ | 4,544 | $ | — | $ | 224 | $ | 7,504 | ||||||||||
| Amortization of acquired intangibles, net | $ | — | $ | — | $ | 14,868 | $ | — | $ | 14,868 | ||||||||||
| Adjusted EBITDA | $ | 34,433 | $ | 2,021 | $ | 15,652 | $ | (10,605) | $ | 41,501 | ||||||||||
| Capital expenditures | $ | 3,645 | $ | 14,156 | $ | — | $ | — | $ | 17,801 | ||||||||||
| Reconciliation of Non-GAAP measures: | |||||||||||||||||||
| Nine Months Ended September 30, 2017 | |||||||||||||||||||
| CAPP | NAPP | Trading and Logistics | All Other | Consolidated | |||||||||||||||
| Net income (loss) from continuing operations | $ | 128,584 | $ | 41,855 | $ | 17,203 | $ | (128,556) | $ | 59,086 | |||||||||
| Interest expense | (92) | (633) | — | 28,805 | 28,080 | ||||||||||||||
| Interest income | (8) | — | — | (108) | (116) | ||||||||||||||
| Income tax expense | — | — | — | 7,440 | 7,440 | ||||||||||||||
| Depreciation, depletion and amortization | 13,447 | 11,206 | — | 639 | 25,292 | ||||||||||||||
| Non-cash stock compensation expense | — | — | 380 | 11,532 | 11,912 | ||||||||||||||
| Mark-to-market adjustment - acquisition-related obligations | — | — | — | 3,221 | 3,221 | ||||||||||||||
| Gain on settlement of acquisition-related obligations | — | — | — | (9,200) | (9,200) | ||||||||||||||
| Secondary offering costs | — | — | — | 4,499 | 4,499 | ||||||||||||||
| Loss on early extinguishment of debt | — | — | — | 38,701 | 38,701 | ||||||||||||||
| Bargain purchase gain | — | — | — | (1,011) | (1,011) | ||||||||||||||
| Accretion expense | 4,384 | 3,123 | — | — | 7,507 | ||||||||||||||
| Amortization of acquired intangibles, net | — | — | 49,111 | — | 49,111 | ||||||||||||||
| Expenses related to Special Dividend | 377 | 57 | — | 9,102 | 9,536 | ||||||||||||||
| Adjusted EBITDA (1) (2) | $ | 146,692 | $ | 55,608 | $ | 66,694 | $ | (34,936) | $ | 234,058 | |||||||||
| (1) The Company's Adjusted EBITDA calculation has been modified to add back non-cash stock compensation expense to align with industry peer group methodology. |
| (2) Pursuant to the PRB divestiture and classification as a discontinued operation, the Company is no longer presenting a PRB reporting segment. The former PRB reporting segment had Adjusted EBITDA of $33,289 for the nine months ended September 30, 2017. |
| Segment Information: | ||||||||||||||||||||
| Nine Months Ended September 30, 2017 | ||||||||||||||||||||
| CAPP | NAPP | Trading and Logistics | All Other | Consolidated | ||||||||||||||||
| Total revenues | $ | 369,600 | $ | 243,605 | $ | 683,558 | $ | 562 | $ | 1,297,325 | ||||||||||
| Depreciation, depletion, and amortization | $ | 13,447 | $ | 11,206 | $ | — | $ | 639 | $ | 25,292 | ||||||||||
| Amortization of acquired intangibles, net | $ | — | $ | — | $ | 49,111 | $ | — | $ | 49,111 | ||||||||||
| Adjusted EBITDA | $ | 146,692 | $ | 55,608 | $ | 66,694 | $ | (34,936) | $ | 234,058 | ||||||||||
| Capital expenditures | $ | 10,834 | $ | 36,365 | $ | — | $ | 1,058 | $ | 48,257 | ||||||||||
| Contura Energy Inc. AND SUBSIDIARIES | ||||||||||||||
| RESULTS OF OPERATIONS | ||||||||||||||
| (Amounts in thousands, except per ton data) | ||||||||||||||
| Three Months Ended September 30, | Increase (Decrease) | |||||||||||||
| (In thousands, except for per ton data) | 2018 | 2017 | $ or Tons | % | ||||||||||
| Revenues: | ||||||||||||||
| Coal revenues: | ||||||||||||||
| Steam | $ | 51,010 | $ | 60,684 | $ | (9,674) | (15.9)% | |||||||
| Met | 300,954 | 258,494 | 42,460 | 16.4 | % | |||||||||
| Freight and handling fulfillment revenues | 91,041 | 61,492 | 29,549 | 48.1 | % | |||||||||
| Other revenues | 4,866 | 1,868 | 2,998 | 160.5 | % | |||||||||
| Total revenues | $ | 447,871 | $ | 382,538 | $ | 65,333 | 17.1 | % | ||||||
| Tons sold: | ||||||||||||||
| Steam | 1,238 | 1,399 | (161) | (11.5)% | ||||||||||
| Met | 2,641 | 2,389 | 252 | 10.5 | % | |||||||||
| Total | 3,879 | 3,788 | 91 | 2.4 | % | |||||||||
| Coal sales realization per ton (1): | ||||||||||||||
| Steam | $ | 41.20 | $ | 43.38 | $ | (2.18) | (5.0)% | |||||||
| Met | $ | 113.95 | $ | 108.20 | $ | 5.75 | 5.3 | % | ||||||
| Average | $ | 90.74 | $ | 84.26 | $ | 6.48 | 7.7 | % | ||||||
| Three Months Ended September 30, | Increase (Decrease) | |||||||||||||
| (In thousands, except for per ton data) | 2018 | 2017 | $ or Tons | % | ||||||||||
| Coal revenues (1): | ||||||||||||||
| CAPP Operations | $ | 115,107 | $ | 108,611 | $ | 6,496 | 6.0 | % | ||||||
| NAPP Operations | 59,063 | 65,699 | (6,636) | (10.1)% | ||||||||||
| Trading and Logistics Operations | 177,794 | 144,868 | 32,926 | 22.7 | % | |||||||||
| Total coal revenues | $ | 351,964 | $ | 319,178 | $ | 32,786 | 10.3 | % | ||||||
| Tons sold: | ||||||||||||||
| CAPP Operations | 987 | 1,026 | (39) | (3.8)% | ||||||||||
| NAPP Operations | 1,316 | 1,474 | (158) | (10.7)% | ||||||||||
| Trading and Logistics Operations | 1,576 | 1,288 | 288 | 22.4 | % | |||||||||
| Coal sales realization per ton (1): | ||||||||||||||
| CAPP Operations | $ | 116.62 | $ | 105.86 | $ | 10.76 | 10.2 | % | ||||||
| NAPP Operations | $ | 44.88 | $ | 44.57 | $ | 0.31 | 0.7 | % | ||||||
| Trading and Logistics Operations | $ | 112.81 | $ | 112.48 | $ | 0.33 | 0.3 | % | ||||||
| Average | $ | 90.74 | $ | 84.26 | $ | 6.48 | 7.7 | % | ||||||
| (1) Does not include $91.0 million of freight and handling fulfillment revenues for the three months ended September 30, 2018. | ||||||||||||||
| Three Months Ended September 30, | Increase (Decrease) | |||||||||||||
| (In thousands, except for per ton data) | 2018 | 2017 | $ or Tons | % | ||||||||||
| Cost of coal sales (exclusive of items shown separately below) | $ | 307,689 | $ | 270,838 | $ | 36,851 | 13.6 | % | ||||||
| Freight and handling costs | 91,041 | 61,492 | 29,549 | 48.1 | % | |||||||||
| Depreciation, depletion and amortization | 11,141 | 7,504 | 3,637 | 48.5 | % | |||||||||
| Amortization of acquired intangibles, net | 1,158 | 14,868 | (13,710) | (92.2)% | ||||||||||
| Selling, general and administrative expenses (exclusive of depreciation, depletion and amortization shown separately above) | 12,382 | 15,946 | (3,564) | (22.4)% | ||||||||||
| Merger related costs | 1,181 | — | 1,181 | 100.0 | % | |||||||||
| Secondary offering costs | — | 1,061 | (1,061) | (100.0)% | ||||||||||
| Total other operating (income) loss: | ||||||||||||||
| Gain on disposal of assets | (601) | — | (601) | (100.0)% | ||||||||||
| Mark-to-market adjustment for acquisition-related obligations | — | 839 | (839) | (100.0)% | ||||||||||
| Gain on settlement of acquisition-related obligations | (118) | — | (118) | (100.0)% | ||||||||||
| Other expenses | 150 | 8 | 142 | 1,775.0 | % | |||||||||
| Total costs and expenses | 424,023 | 372,556 | 51,467 | 13.8 | % | |||||||||
| Other (expense) income: | ||||||||||||||
| Interest expense | (8,554) | (8,466) | (88) | (1.0)% | ||||||||||
| Interest income | 507 | 43 | 464 | 1,079.1 | % | |||||||||
| Equity loss in affiliates | (1,624) | (411) | (1,213) | (295.1)% | ||||||||||
| Bargain purchase gain | — | 369 | (369) | (100.0)% | ||||||||||
| Miscellaneous income, net | (154) | (158) | 4 | 2.5 | % | |||||||||
| Total other expense, net | (9,825) | (8,623) | (1,202) | (13.9)% | ||||||||||
| Income tax expense | (12) | 8,371 | (8,383) | (100.1)% | ||||||||||
| Net income from continuing operations | $ | 14,011 | $ | 9,730 | $ | 4,281 | 44.0 | % | ||||||
| Cost of coal sales: | ||||||||||||||
| CAPP Operations | $ | 85,254 | $ | 75,947 | $ | 9,307 | 12.3 | % | ||||||
| NAPP Operations | $ | 61,021 | $ | 65,611 | $ | (4,590) | (7.0)% | |||||||
| Trading and Logistics Operations | $ | 161,414 | $ | 129,374 | $ | 32,040 | 24.8 | % | ||||||
| Tons sold: | ||||||||||||||
| CAPP Operations | 987 | 1,026 | (39) | (3.8)% | ||||||||||
| NAPP Operations | 1,316 | 1,474 | (158) | (10.7)% | ||||||||||
| Trading and Logistics Operations | 1,576 | 1,288 | 288 | 22.4 | % | |||||||||
| Cost of coal sales per ton: | ||||||||||||||
| CAPP Operations | $ | 86.38 | $ | 74.02 | $ | 12.36 | 16.7 | % | ||||||
| NAPP Operations | $ | 46.37 | $ | 44.51 | $ | 1.86 | 4.2 | % | ||||||
| Trading and Logistics Operations | $ | 102.42 | $ | 100.45 | $ | 1.97 | 2.0 | % | ||||||
| Coal margin per ton (1): | ||||||||||||||
| CAPP Operations | $ | 30.24 | $ | 31.84 | $ | (1.60) | (5.0)% | |||||||
| NAPP Operations | $ | (1.49) | $ | 0.06 | $ | (1.55) | (2,583.3)% | |||||||
| Trading and Logistics Operations | $ | 10.39 | $ | 12.03 | $ | (1.64) | (13.6)% | |||||||
| (1) Coal margin per ton for our reportable segments is calculated as coal sales realization per ton for our reportable segments less cost of coal sales per ton for our reportable segments. Coal margin per ton is not shown for our All Other category since it has no coal sales or coal production related to our continuing operations. | ||||||||||||||
| Nine Months Ended September 30, | Increase (Decrease) | |||||||||||||
| (In thousands, except for per ton data) | 2018 | 2017 | $ or Tons | % | ||||||||||
| Revenues: | ||||||||||||||
| Coal revenues: | ||||||||||||||
| Steam | $ | 162,937 | $ | 226,939 | $ | (64,002) | (28.2)% | |||||||
| Met | 1,015,584 | 873,139 | 142,445 | 16.3 | % | |||||||||
| Freight and handling fulfillment revenues | 268,017 | 191,411 | 76,606 | 40.0 | % | |||||||||
| Other revenues | 12,583 | 5,836 | 6,747 | 115.6 | % | |||||||||
| Total revenues | $ | 1,459,121 | $ | 1,297,325 | $ | 161,796 | 12.5 | % | ||||||
| Tons sold: | ||||||||||||||
| Steam | 3,917 | 5,360 | (1,443) | (26.9)% | ||||||||||
| Met | 8,164 | 6,855 | 1,309 | 19.1 | % | |||||||||
| Total | 12,081 | 12,215 | (134) | (1.1)% | ||||||||||
| Coal sales realization per ton (1): | ||||||||||||||
| Steam | $ | 41.60 | $ | 42.34 | $ | (0.74) | (1.7)% | |||||||
| Met | $ | 124.40 | $ | 127.37 | $ | (2.97) | (2.3)% | |||||||
| Average | $ | 97.55 | $ | 90.06 | $ | 7.49 | 8.3 | % | ||||||
| Nine Months Ended September 30, | Increase (Decrease) | |||||||||||||
| (In thousands, except for per ton data) | 2018 | 2017 | $ or Tons | % | ||||||||||
| Coal revenues (1): | ||||||||||||||
| CAPP Operations | $ | 401,830 | $ | 368,586 | $ | 33,244 | 9.0 | % | ||||||
| NAPP Operations | 191,229 | 240,700 | (49,471) | (20.6)% | ||||||||||
| Trading and Logistics Operations | 585,462 | 490,792 | 94,670 | 19.3 | % | |||||||||
| Total coal revenues | $ | 1,178,521 | $ | 1,100,078 | $ | 78,443 | 7.1 | % | ||||||
| Tons sold: | ||||||||||||||
| CAPP Operations | 3,125 | 3,074 | 51 | 1.7 | % | |||||||||
| NAPP Operations | 4,302 | 5,512 | (1,210) | (22.0)% | ||||||||||
| Trading and Logistics Operations | 4,654 | 3,629 | 1,025 | 28.2 | % | |||||||||
| Coal sales realization per ton (1): | ||||||||||||||
| CAPP Operations | $ | 128.59 | $ | 119.90 | $ | 8.69 | 7.2 | % | ||||||
| NAPP Operations | $ | 44.45 | $ | 43.67 | $ | 0.78 | 1.8 | % | ||||||
| Trading and Logistics Operations | $ | 125.80 | $ | 135.24 | $ | (9.44) | (7.0)% | |||||||
| Average | $ | 97.55 | $ | 90.06 | $ | 7.49 | 8.3 | % | ||||||
| (1) Does not include $268.0 million of freight and handling fulfillment revenues for the nine months ended September 30, 2018. | ||||||||||||||
| Nine Months Ended September 30, | Increase (Decrease) | |||||||||||||
| (In thousands, except for per ton data) | 2018 | 2017 | $ or Tons | % | ||||||||||
| Cost of coal sales (exclusive of items shown separately below) | $ | 936,817 | $ | 842,158 | $ | 94,659 | 11.2 | % | ||||||
| Freight and handling costs | 268,017 | 191,411 | 76,606 | 40.0 | % | |||||||||
| Depreciation, depletion and amortization | 33,951 | 25,292 | 8,659 | 34.2 | % | |||||||||
| Amortization of acquired intangibles, net | 12,468 | 49,111 | (36,643) | (74.6)% | ||||||||||
| Selling, general and administrative expenses (exclusive of depreciation, depletion and amortization shown separately above) | 43,490 | 56,094 | (12,604) | (22.5)% | ||||||||||
| Merger related costs | 5,064 | — | 5,064 | 100.0 | % | |||||||||
| Secondary offering costs | — | 4,499 | (4,499) | (100.0)% | ||||||||||
| Total other operating (income) loss: | ||||||||||||||
| Gain on disposal of assets | (17,103) | — | (17,103) | (100.0)% | ||||||||||
| Mark-to-market adjustment for acquisition-related obligations | — | 3,221 | (3,221) | (100.0)% | ||||||||||
| Gain on settlement of acquisition-related obligations | (410) | (9,200) | 8,790 | 95.5 | % | |||||||||
| Other expenses | 438 | 89 | 349 | 392.1 | % | |||||||||
| Total costs and expenses | 1,282,732 | 1,162,675 | $ | 120,057 | 10.3 | % | ||||||||
| Other income (expense): | ||||||||||||||
| Interest expense | (26,538) | (28,080) | 1,542 | 5.5 | % | |||||||||
| Interest income | 829 | 116 | 713 | 614.7 | % | |||||||||
| Loss on early extinguishment of debt | — | (38,701) | 38,701 | 100.0 | % | |||||||||
| Equity loss in affiliates | (2,857) | (2,120) | (737) | (34.8)% | ||||||||||
| Bargain purchase gain | — | 1,011 | (1,011) | (100.0)% | ||||||||||
| Miscellaneous income, net | (737) | (350) | (387) | (110.6)% | ||||||||||
| Total other expense, net | (29,303) | (68,124) | 38,821 | 57.0 | % | |||||||||
| Income tax expense | (133) | (7,440) | 7,307 | 98.2 | % | |||||||||
| Net income from continuing operations | $ | 146,953 | $ | 59,086 | $ | 87,867 | 148.7 | % | ||||||
| Cost of coal sales: | ||||||||||||||
| CAPP Operations | $ | 253,424 | $ | 227,431 | $ | 25,993 | 11.4 | % | ||||||
| NAPP Operations | $ | 180,137 | $ | 191,258 | $ | (11,121) | (5.8)% | |||||||
| Trading and Logistics Operations | $ | 503,256 | $ | 423,755 | $ | 79,501 | 18.8 | % | ||||||
| Tons sold: | ||||||||||||||
| CAPP Operations | 3,125 | 3,074 | $ | 51 | 1.7 | % | ||||||||
| NAPP Operations | 4,302 | 5,512 | $ | (1,210) | (22.0)% | |||||||||
| Trading and Logistics Operations | 4,654 | 3,629 | $ | 1,025 | 28.2 | % | ||||||||
| Cost of coal sales per ton: | ||||||||||||||
| CAPP Operations | $ | 81.10 | $ | 73.99 | $ | 7.11 | 9.6 | % | ||||||
| NAPP Operations | $ | 41.87 | $ | 34.70 | $ | 7.17 | 20.7 | % | ||||||
| Trading and Logistics Operations | $ | 108.13 | $ | 116.77 | $ | (8.64) | (7.4)% | |||||||
| Coal margin per ton (1): | ||||||||||||||
| CAPP Operations | $ | 47.49 | $ | 45.91 | $ | 1.58 | 3.4 | % | ||||||
| NAPP Operations | $ | 2.58 | $ | 8.97 | $ | (6.39) | (71.2)% | |||||||
| Trading and Logistics Operations | $ | 17.67 | $ | 18.47 | $ | (0.80) | (4.3)% | |||||||
| (1) Coal margin per ton for our reportable segments is calculated as coal sales realization per ton for our reportable segments less cost of coal sales per ton for our reportable segments. Coal margin per ton is not shown for our All Other category since it has no coal sales or coal production related to our continuing operations. | ||||||||||||||
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SOURCE Contura Energy Inc.
