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Alpha Announces Second Quarter 2023 Financial Results

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Alpha Metallurgical Resources reports second quarter net income of $181.4 million and adjusted EBITDA of $258.5 million. The company maintains progress on its share buyback program, returning over $850 million to shareholders. They also declare a quarterly dividend of $0.50 per share and announce the decision to cease the fixed dividend program at year end. Full-year volume guidance for thermal coal within the Met segment is reduced to 1.0 million to 1.4 million tons.
Positive
  • Alpha Metallurgical Resources reports net income of $181.4 million for Q2 2023, a decrease from $270.8 million in Q1. Adjusted EBITDA is $258.5 million, down from $354.4 million in Q1. The company maintains progress on its share buyback program, returning over $850 million to shareholders. They declare a quarterly dividend of $0.50 per share. Full-year volume guidance for thermal coal within the Met segment is reduced to 1.0 million to 1.4 million tons.
Negative
  • None.
  • Reports second quarter net income of $181.4 million, or $12.16 per diluted share
  • Posts Adjusted EBITDA of $258.5 million for the quarter
  • Maintains robust progress of share buyback program by returning more than $850 million to shareholders since program inception as of July 31, 2023, with nearly $350 million in board authorization remaining
  • Declares quarterly dividend of $0.50 per share
  • Announces board decision to cease fixed dividend program at year end, consolidating focus and exclusive capital return priority to the share buyback program
  • Reduces full-year volume guidance for thermal coal within the Met segment to 1.0 million to 1.4 million tons

BRISTOL, Tenn. , Aug. 4, 2023 /PRNewswire/ -- Alpha Metallurgical Resources, Inc. (NYSE: AMR), a leading U.S. supplier of metallurgical products for the steel industry, today reported financial results for the second quarter ending June 30, 2023.


(millions, except per share)


Three months ended


June 30, 2023

Mar. 31, 2023

June 30, 2022

Net income

$181.4

$270.8

$574.2

Net income per diluted share

$12.16

$17.01

$29.97

Adjusted EBITDA(1)

$258.5

$354.4

$692.9

Operating cash flow

$317.2

$177.4

$465.9

Capital expenditures

($54.9)

($74.2)

($41.9)

Tons of coal sold

4.3

3.9

4.3

 __________________________________

1. These are non-GAAP financial measures. A reconciliation of Net Income to Adjusted EBITDA is included in tables accompanying the financial schedules.

 

"Our team successfully navigated some challenges in the quarter, as we announced in late June," said Andy Eidson, Alpha's chief executive officer. "The resulting shipment delays, coupled with the continued decline of metallurgical indices, influenced our results for the second quarter. Even with some challenging circumstances to overcome, our teams performed well this quarter and they safely and swiftly addressed the issues we experienced."

Eidson continued: "In addition to executing on our safety and operational performance expectations, our share buyback program remains a high priority and an area where we have delivered significant progress. As of the end of July, we have cumulatively repurchased over $850 million dollars' worth of our common stock since the buyback program's inception, which represents approximately 30% of shares outstanding at the start of the program. Building on the success of our share repurchase program, the board has decided to cease our fixed dividend program after the next quarterly dividend declaration and payment, both of which we expect to occur before year end. This move consolidates our focus, bolstering the already-robust share repurchase program by allowing all available capital return dollars to flow into our buyback program, subject, as always, to market conditions, the trading price of our stock, and our evaluation of the expected return on investment of future share purchases."

Financial Performance

Alpha reported net income of $181.4 million, or $12.16 per diluted share, for the second quarter 2023, as compared to net income of $270.8 million, or $17.01 per diluted share, in the first quarter.

For the second quarter, total Adjusted EBITDA was $258.5 million, compared to $354.4 million in the first quarter. 

Coal Revenues


(millions)


Three months ended


June 30, 2023

Mar. 31, 2023

Met Segment

$834.0

$887.0

All Other

$19.8

$19.7




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

$715.8

$780.8

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

$19.8

$19.5



Tons Sold

(millions)


Three months ended


June 30, 2023

Mar. 31, 2023

Met Segment

4.1

3.7

All Other

0.2

0.2

__________________________________

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


June 30, 2023

Mar. 31, 2023

Met Segment

$172.51

$208.93

All Other

$99.66

$109.36

__________________________________

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

 

Second quarter net realized pricing for the Met segment was $172.51 per ton and net realization in the All Other category was $99.66 per ton.

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


(in millions, except per ton data)

Met Segment Sales

Three months ended June 30, 2023


Tons Sold

Coal Revenues

Realization/ton(1)

% of Met Tons
Sold

Export - Other Pricing Mechanisms

1.5

$271.1

$175.69

39 %

Domestic

1.1

$222.3

$193.98

29 %

Export - Australian Indexed

1.2

$194.4

$159.62

32 %

Total Met Coal Revenues

3.9

$687.8

$176.04

100 %

Thermal Coal Revenues

0.2

$28.0

$115.50


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

4.1

$715.8

$172.51


__________________________________

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


June 30, 2023

Mar. 31, 2023

Cost of Coal Sales

$583.5

$539.1

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

$458.9

$426.5




(per ton)

Met Segment(1)

$106.35

$110.56

All Other(1)

$88.59

$74.69

__________________________________

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."

 

Alpha's Met segment cost of coal sales improved to an average of $106.35 per ton in the second quarter, compared to $110.56 per ton in the first quarter of 2023. Cost of coal sales for the All Other category increased to $88.59 per ton in the second quarter, compared to $74.69 per ton in the first quarter. Higher costs in the quarter are due largely to expected inefficiencies associated with the Slabcamp mine's approaching end of life.

Liquidity and Capital Resources

Cash provided by operating activities in the second quarter increased to $317.2 million as compared to $177.4 million in the first quarter. The second quarter operating cash flows were positively impacted by a decrease in working capital of $81.8 million. The primary driver was a reduction in accounts receivable. Capital expenditures for the second quarter were $54.9 million compared to $74.2 million for the first quarter.

As of June 30, 2023, the company had total liquidity of $405.5 million, including cash and cash equivalents of $312.4 million and $93.1 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 June 30, 2023, the company had no borrowings and $61.9 million in letters of credit outstanding under the ABL. Total long-term debt, including the current portion of long-term debt as of June 30, 2023, was $11.2 million and consists primarily of equipment financing obligations.

Dividend Program

On August 2, 2023, Alpha's board of directors declared a quarterly cash dividend payment of $0.50 per share, which will become payable on October 3, 2023 for holders of record as of September 15, 2023.

To fully focus the company's capital return efforts on its share buyback program, Alpha's board has decided to cease the fixed dividend program following the next quarterly dividend, expected to be declared and paid in fourth quarter 2023, which will depend on Alpha's future earnings and financial condition and other relevant factors.

Share Repurchase Program

As previously announced, Alpha's board of directors authorized a share repurchase program allowing for the expenditure of up to $1.2 billion for the repurchase of the company's common stock.  As of July 31, 2023, the company has acquired approximately 5.7 million shares of common stock at a cost of approximately $850 million. The number of common stock shares outstanding as of July 31, 2023 was 13,687,474, not including the potentially dilutive effect of unvested equity awards.

The timing and amount of share repurchases will continue to 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.

Operational Update

As previously announced in June, Alpha temporarily halted production as a safety precaution at the Road Fork 52 Mine due to a ventilation issue likely stemming from a previously mined and worked-out area. Ventilation adjustments were made and acceptable air quality levels were reestablished in the mine, which was temporarily shut down for approximately six days. This resulted in the delayed shipment of coal to customers, who received force majeure letters notifying them of these circumstances. The Road Fork 52 Mine is back to normal production levels and Alpha expects to be able to make up the delayed tons impacted by this issue in the third quarter.

A separate and previously announced mechanical failure occurred in June at the Dominion Terminal Associates (DTA) facility in Newport News, Virginia, in which Alpha has a sixty-five percent ownership interest. One of DTA's stacker/reclaimer machines experienced a mechanical failure that caused it to be inoperable for a period of approximately three days in June while it was repaired and brought back to full capacity. This down time hampered train unloading capability and created related vessel loading delays for roughly 250,000 short tons of Alpha shipments for export customers who received force majeure letters. Alpha fulfilled these shipments in July.

2023 Guidance Adjustment and Performance Update 

Alpha is reducing full year 2023 guidance for the thermal coal volumes within the Met segment. The new thermal coal guidance range within the Met segment is 1.0 million to 1.4 million tons, down from the prior range of 1.4 million to 1.8 million tons.

As of July 27, 2023, Alpha has committed and priced approximately 71% of its metallurgical coal within the Met segment at an average price of $189.15 per ton and 100% of thermal coal in the Met segment at an average expected price of $99.67 per ton. In the All Other category the company is 100% committed and priced at an average price of $90.47 per ton.


2023 Guidance

in millions of tons

Low

High

Metallurgical

15.0

16.0

Thermal

1.0

1.4

Met Segment

16.0

17.4

All Other

0.3

0.6

Total Shipments

16.3

18.0




Committed/Priced1,2,3

Committed

Average Price

Metallurgical - Domestic


$193.11

Metallurgical - Export


$186.00

Metallurgical Total

71 %

$189.15

Thermal

100 %

$99.67

Met Segment

75 %

$178.42

All Other

100 %

$90.47




Committed/Unpriced1,3

Committed


Metallurgical Total

29 %


Thermal

— %


Met Segment

25 %


All Other

— %





Costs per ton4

Low

High

Met Segment

$106.00

$112.00

All Other

$87.00

$93.00




In millions (except taxes)

Low

High

SG&A5

$59

$65

Idle Operations Expense

$21

$31

Cash Interest Expense

$2

$10

DD&A

$115

$135

Capital Expenditures

$250

$280

Tax Rate

12 %

17 %




Notes: 

1.

Based on committed and priced coal shipments as of July 27, 2023. 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.

 

Conference Call

The company plans to hold a conference call regarding its second quarter 2023 results on August 4, 2023, 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://alphametresources.com/investors. Analysts who would like to participate in the conference call should dial 877-407-0832 (domestic toll-free) or 201-689-8433 (international) approximately 15 minutes prior to start time.

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 & MEDIA CONTACT: EMILY O'QUINN
InvestorRelations@AlphaMetResources.com
CorporateCommunications@AlphaMetResources.com
(423) 573-0369

FINANCIAL TABLES FOLLOW

Non-GAAP Financial Measures

The discussion below contains "non-GAAP financial measures." These are financial measures that 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," and "non-GAAP coal margin." 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. 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

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

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



Three Months Ended June 30,


Six Months Ended June 30,


2023


2022


2023


2022

Revenues:








Coal revenues

$              853,807


$          1,334,258


$          1,760,505


$          2,403,996

Other revenues

4,564


2,154


9,101


4,380

Total revenues

858,371


1,336,412


1,769,606


2,408,376

Costs and expenses:








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

583,514


627,429


1,122,651


1,182,771

Depreciation, depletion and amortization

32,226


27,730


61,649


55,765

Accretion on asset retirement obligations

6,376


5,947


12,753


11,901

Amortization of acquired intangibles, net

2,192


5,747


4,389


11,495

Selling, general and administrative expenses (exclusive of depreciation, depletion

and amortization shown separately above)

17,506


18,158


38,198


33,244

Total other operating loss (income):








Mark-to-market adjustment for acquisition-related obligations


4,208



13,569

Other income

(1,546)


(1,516)


(2,638)


(2,144)

Total costs and expenses

640,268


687,703


1,237,002


1,306,601

Income from operations

218,103


648,709


532,604


1,101,775

Other (expense) income:








Interest expense

(1,856)


(5,218)


(3,576)


(18,301)

Interest income

2,754


170


4,272


354

Equity loss in affiliates

(3,174)


(2,136)


(4,922)


(3,497)

Miscellaneous (expense) income, net

(874)


1,264


(243)


2,940

Total other expense, net

(3,150)


(5,920)


(4,469)


(18,504)

Income before income taxes

214,953


642,789


528,135


1,083,271

Income tax expense

(33,598)


(68,632)


(76,009)


(108,223)

Net income

$              181,355


$              574,157


$              452,126


$              975,048









Basic income per common share

$                  12.63


$                  31.24


$                  30.52


$                  52.77

Diluted income per common share

$                  12.16


$                  29.97


$                  29.34


$                  50.39









Weighted average shares – basic

14,362,072


18,380,114


14,814,099


18,476,534

Weighted average shares – diluted

14,910,633


19,158,848


15,410,994


19,349,209

 

ALPHA METALLURGICAL RESOURCES, INC. AND SUBSIDIARIES

 CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)

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



June 30, 2023


December 31, 2022

Assets




Current assets:




Cash and cash equivalents

$             312,400


$             301,906

Short-term investments


46,052

Trade accounts receivable, net of allowance for credit losses of $205 and $239 as of

June 30, 2023 and December 31, 2022, respectively

432,014


407,210

Inventories, net

270,461


200,574

Short-term deposits

7,001


84,748

Short-term restricted cash


24,547

Prepaid expenses and other current assets

56,431


49,384

Total current assets

1,078,307


1,114,421

Property, plant, and equipment, net of accumulated depreciation and amortization of

$525,470 and $491,186 as of June 30, 2023 and December 31, 2022, respectively

514,859


442,645

Owned and leased mineral rights, net of accumulated depletion and amortization of

$89,403 and $77,333 as of June 30, 2023 and December 31, 2022, respectively

452,501


451,062

Other acquired intangibles, net of accumulated amortization of $45,429 and $53,719

as of June 30, 2023 and December 31, 2022, respectively

50,713


55,102

Long-term restricted investments

75,961


105,735

Long-term restricted cash

71,299


28,941

Deferred income taxes

9,422


11,378

Other non-current assets

104,770


103,195

Total assets

$          2,357,832


$          2,312,479

Liabilities and Stockholders' Equity




Current liabilities:




Current portion of long-term debt

$                  3,486


$                  3,078

Trade accounts payable

106,216


106,037

Acquisition-related obligations– current

296


28,254

Accrued expenses and other current liabilities

185,738


265,256

Total current liabilities

295,736


402,625

Long-term debt

7,761


7,897

Workers' compensation and black lung obligations

183,003


188,247

Pension obligations

106,844


110,836

Asset retirement obligations

146,817


142,048

Deferred income taxes

33,295


10,874

Other non-current liabilities

17,642


20,197

Total liabilities

791,098


882,724

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, 21.9 million issued and 13.9 million

outstanding at June 30, 2023 and 21.7 million issued and 15.5 million outstanding at December 31, 2022

219


217

Additional paid-in capital

818,221


815,442

Accumulated other comprehensive loss

(15,891)


(12,162)

Treasury stock, at cost: 8.0 million shares at June 30, 2023 and 6.2 million shares at December 31, 2022

(949,202)


(649,061)

Retained earnings

1,713,387


1,275,319

Total stockholders' equity

1,566,734


1,429,755

Total liabilities and stockholders' equity

$          2,357,832


$          2,312,479

 

ALPHA METALLURGICAL RESOURCES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

(Amounts in thousands)



Six Months Ended June 30,


2023


2022

Operating activities:




Net income

$                452,126


$                975,048

Adjustments to reconcile net income to net cash provided by operating activities:




Depreciation, depletion and amortization

61,649


55,765

Amortization of acquired intangibles, net

4,389


11,495

Amortization of debt issuance costs and accretion of debt discount

1,060


7,231

Mark-to-market adjustment for acquisition-related obligations


13,569

Gain on disposal of assets

(5,578)


(2,172)

Accretion on asset retirement obligations

12,753


11,901

Employee benefit plans, net

6,463


232

Deferred income taxes

25,440


12,617

Stock-based compensation

6,679


2,583

Equity loss in affiliates

4,922


3,497

Other, net

(66)


567

Changes in operating assets and liabilities

(75,231)


(290,277)

Net cash provided by operating activities

494,606


802,056

Investing activities:




Capital expenditures

(129,111)


(70,012)

Proceeds from disposal of assets

6,839


2,511

Cash paid for business acquired

(11,919)


Purchases of investment securities

(158,835)


(127,831)

Sales and maturities of investment securities

236,650


60,945

Capital contributions to equity affiliates

(14,943)


(8,525)

Other, net

18


(4,237)

Net cash used in investing activities

(71,301)


(147,149)

Financing activities:




Principal repayments of long-term debt

(1,050)


(450,362)

Dividend and dividend equivalents paid

(92,649)


Common stock repurchases and related expenses

(301,201)


(194,950)

Proceeds from exercise of warrants

559


4,486

Other, net

(659)


(195)

Net cash used in financing activities

(395,000)


(641,021)

Net increase in cash and cash equivalents and restricted cash

28,305


13,886

Cash and cash equivalents and restricted cash at beginning of period

355,394


182,614

Cash and cash equivalents and restricted cash at end of period

$                383,699


$                196,500





Supplemental disclosure of noncash investing and financing activities:




Financing leases and capital financing - equipment

$                    1,994


$                    1,426

Accrued capital expenditures

$                  13,948


$                  10,703

Accrued common stock repurchases

$                    6,642


$                    5,197

Accrued dividend payable

$                    9,541


$                    6,977

 

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.


As of June 30,


2023


2022

Cash and cash equivalents

$                312,400


$                161,732

Short-term restricted cash


9,848

Long-term restricted cash

71,299


24,920

Total cash and cash equivalents and restricted cash shown in the Condensed

Consolidated Statements of Cash Flows

$                383,699


$                196,500

 

 ALPHA METALLURGICAL RESOURCES, INC. AND SUBSIDIARIES

ADJUSTED EBITDA RECONCILIATION

(Amounts in thousands)



Three Months Ended


Six Months Ended June 30,


June 30, 2023


March 31, 2023


June 30, 2022


2023


2022

Net income

$       181,355


$       270,771


$       574,157


$       452,126


$       975,048

Interest expense

1,856


1,720


5,218


3,576


18,301

Interest income

(2,754)


(1,518)


(170)


(4,272)


(354)

Income tax expense

33,598


42,411


68,632


76,009


108,223

Depreciation, depletion and amortization

32,226


29,423


27,730


61,649


55,765

Non-cash stock compensation expense

3,645


3,034


1,401


6,679


2,583

Mark-to-market adjustment - acquisition-related obligations



4,208



13,569

Accretion on asset retirement obligations

6,376


6,377


5,947


12,753


11,901

Amortization of acquired intangibles, net

2,192


2,197


5,747


4,389


11,495

Adjusted EBITDA

$       258,494


$       354,415


$       692,870


$       612,909


$    1,196,531

 

ALPHA METALLURGICAL RESOURCES, INC. AND SUBSIDIARIES

RESULTS OF OPERATIONS



Three Months Ended June 30, 2023

(In thousands, except for per ton data)

Met


All Other


Consolidated

Coal revenues

$         833,974


$           19,833


$         853,807

Less: Freight and handling fulfillment revenues

(118,222)



(118,222)

Non-GAAP Coal revenues

$         715,752


$           19,833


$         735,585

Tons sold

4,149


199


4,348

Non-GAAP Coal sales realization per ton

$           172.51


$              99.66


$           169.18







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

$         563,495


$           20,019


$         583,514

Depreciation, depletion and amortization - production (1)

31,649


287


31,936

Accretion on asset retirement obligations

3,721


2,655


6,376

Amortization of acquired intangibles, net

2,192



2,192

Total Cost of coal sales

$         601,057


$           22,961


$         624,018

Less: Freight and handling costs

(118,222)



(118,222)

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

(31,649)


(287)


(31,936)

Less: Accretion on asset retirement obligations

(3,721)


(2,655)


(6,376)

Less: Amortization of acquired intangibles, net

(2,192)



(2,192)

Less: Idled and closed mine costs

(4,022)


(2,389)


(6,411)

Non-GAAP Cost of coal sales

$         441,251


$           17,630


$         458,881

Tons sold

4,149


199


4,348

Non-GAAP Cost of coal sales per ton

$           106.35


$              88.59


$           105.54



(1)

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

 


Three Months Ended June 30, 2023

(In thousands, except for per ton data)

Met


All Other


Consolidated

Coal revenues

$         833,974


$           19,833


$         853,807

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

(601,057)


(22,961)


(624,018)

GAAP Coal margin

$         232,917


$            (3,128)


$         229,789

Tons sold

4,149


199


4,348

GAAP Coal margin per ton

$              56.14


$            (15.72)


$              52.85







GAAP Coal margin

$         232,917


$            (3,128)


$         229,789

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

31,649


287


31,936

Add: Accretion on asset retirement obligations

3,721


2,655


6,376

Add: Amortization of acquired intangibles, net

2,192



2,192

Add: Idled and closed mine costs

4,022


2,389


6,411

Non-GAAP Coal margin

$         274,501


$              2,203


$         276,704

Tons sold

4,149


199


4,348

Non-GAAP Coal margin per ton

$              66.16


$              11.07


$              63.64



(1)

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

 


Three Months Ended March 31, 2023

(In thousands, except for per ton data)

Met


All Other


Consolidated

Coal revenues

$         887,007


$           19,691


$         906,698

Less: Freight and handling fulfillment revenues

(106,252)


(225)


(106,477)

Non-GAAP Coal revenues

$         780,755


$           19,466


$         800,221

Tons sold

3,737


178


3,915

Non-GAAP Coal sales realization per ton

$           208.93


$           109.36


$           204.40







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

$         522,998


$           16,139


$         539,137

Depreciation, depletion and amortization - production (1)

28,879


258


29,137

Accretion on asset retirement obligations

3,722


2,655


6,377

Amortization of acquired intangibles, net

2,197



2,197

Total Cost of coal sales

$         557,796


$           19,052


$         576,848

Less: Freight and handling costs

(106,252)


(225)


(106,477)

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

(28,879)


(258)


(29,137)

Less: Accretion on asset retirement obligations

(3,722)


(2,655)


(6,377)

Less: Amortization of acquired intangibles, net

(2,197)



(2,197)

Less: Idled and closed mine costs

(3,578)


(2,620)


(6,198)

Non-GAAP Cost of coal sales

$         413,168


$           13,294


$         426,462

Tons sold

3,737


178


3,915

Non-GAAP Cost of coal sales per ton

$           110.56


$              74.69


$           108.93



(1)

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

 


Three Months Ended March 31, 2023

(In thousands, except for per ton data)

Met


All Other


Consolidated

Coal revenues

$         887,007


$           19,691


$         906,698

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

(557,796)


(19,052)


(576,848)

GAAP Coal margin

$         329,211


$                 639


$         329,850

Tons sold

3,737


178


3,915

GAAP Coal margin per ton

$              88.09


$                3.59


$              84.25







GAAP Coal margin

$         329,211


$                 639


$         329,850

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

28,879


258


29,137

Add: Accretion on asset retirement obligations

3,722


2,655


6,377

Add: Amortization of acquired intangibles, net

2,197



2,197

Add: Idled and closed mine costs

3,578


2,620


6,198

Non-GAAP Coal margin

$         367,587


$              6,172


$         373,759

Tons sold

3,737


178


3,915

Non-GAAP Coal margin per ton

$              98.36


$              34.67


$              95.47



(1)

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

 


Three Months Ended June 30, 2022

(In thousands, except for per ton data)

Met


All Other


Consolidated

Coal revenues

$      1,318,661


$           15,597


$      1,334,258

Less: Freight and handling fulfillment revenues

(156,522)



(156,522)

Non-GAAP Coal revenues

$      1,162,139


$           15,597


$      1,177,736

Tons sold

4,050


254


4,304

Non-GAAP Coal sales realization per ton

$           286.95


$              61.41


$           273.64







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

$         610,224


$           17,205


$         627,429

Depreciation, depletion and amortization - production (1)

27,202


250


27,452

Accretion on asset retirement obligations

3,390


2,557


5,947

Amortization of acquired intangibles, net

4,795


952


5,747

Total Cost of coal sales

$         645,611


$           20,964


$         666,575

Less: Freight and handling costs

(156,522)



(156,522)

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

(27,202)


(250)


(27,452)

Less: Accretion on asset retirement obligations

(3,390)


(2,557)


(5,947)

Less: Amortization of acquired intangibles, net

(4,795)


(952)


(5,747)

Less: Idled and closed mine costs

(2,708)


(4,531)


(7,239)

Non-GAAP Cost of coal sales

$         450,994


$           12,674


$         463,668

Tons sold

4,050


254


4,304

Non-GAAP Cost of coal sales per ton

$           111.36


$              49.90


$           107.73



(1)

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

 


Three Months Ended June 30, 2022

(In thousands, except for per ton data)

Met


All Other


Consolidated

Coal revenues

$      1,318,661


$           15,597


$      1,334,258

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

(645,611)


(20,964)


(666,575)

GAAP Coal margin

$         673,050


$            (5,367)


$         667,683

Tons sold

4,050


254


4,304

GAAP Coal margin per ton

$           166.19


$            (21.13)


$           155.13







GAAP Coal margin

$         673,050


$            (5,367)


$         667,683

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

27,202


250


27,452

Add: Accretion on asset retirement obligations

3,390


2,557


5,947

Add: Amortization of acquired intangibles, net

4,795


952


5,747

Add: Idled and closed mine costs

2,708


4,531


7,239

Non-GAAP Coal margin

$         711,145


$              2,923


$         714,068

Tons sold

4,050


254


4,304

Non-GAAP Coal margin per ton

$           175.59


$              11.51


$           165.91



(1)

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

 


Six Months Ended June 30, 2023

(In thousands, except for per ton data)

Met


All Other


Consolidated

Coal revenues

$      1,720,981


$           39,524


$      1,760,505

Less: Freight and handling fulfillment revenues

(224,474)


(225)


(224,699)

Non-GAAP Coal revenues

$      1,496,507


$           39,299


$      1,535,806

Tons sold

7,886


377


8,263

Non-GAAP Coal sales realization per ton

$           189.77


$           104.24


$           185.87







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

$      1,086,493


$           36,158


$      1,122,651

Depreciation, depletion and amortization - production (1)

60,528


545


61,073

Accretion on asset retirement obligations

7,443


5,310


12,753

Amortization of acquired intangibles, net

4,389



4,389

Total Cost of coal sales

$      1,158,853


$           42,013


$      1,200,866

Less: Freight and handling costs

(224,474)


(225)


(224,699)

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

(60,528)


(545)


(61,073)

Less: Accretion on asset retirement obligations

(7,443)


(5,310)


(12,753)

Less: Amortization of acquired intangibles, net

(4,389)



(4,389)

Less: Idled and closed mine costs

(7,600)


(5,009)


(12,609)

Non-GAAP Cost of coal sales

$         854,419


$           30,924


$         885,343

Tons sold

7,886


377


8,263

Non-GAAP Cost of coal sales per ton

$           108.35


$              82.03


$           107.15



(1)

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

 


Six Months Ended June 30, 2023

(In thousands, except for per ton data)

Met


All Other


Consolidated

Coal revenues

$      1,720,981


$           39,524


$      1,760,505

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

(1,158,853)


(42,013)


(1,200,866)

GAAP Coal margin

$         562,128


$            (2,489)


$         559,639

Tons sold

7,886


377


8,263

GAAP Coal margin per ton

$              71.28


$              (6.60)


$              67.73







GAAP Coal margin

$         562,128


$            (2,489)


$         559,639

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

60,528


545


61,073

Add: Accretion on asset retirement obligations

7,443


5,310


12,753

Add: Amortization of acquired intangibles, net

4,389



4,389

Add: Idled and closed mine costs

7,600


5,009


12,609

Non-GAAP Coal margin

$         642,088


$              8,375


$         650,463

Tons sold

7,886


377


8,263

Non-GAAP Coal margin per ton

$              81.42


$              22.21


$              78.72



(1)

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

 


Six Months Ended June 30, 2022

(In thousands, except for per ton data)

Met


All Other


Consolidated

Coal revenues

$      2,373,001


$           30,995


$      2,403,996

Less: Freight and handling fulfillment revenues

(300,547)


(18)


(300,565)

Non-GAAP Coal revenues

$      2,072,454


$           30,977


$      2,103,431

Tons sold

7,830


522


8,352

Non-GAAP Coal sales realization per ton

$           264.68


$              59.34


$           251.85







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

$      1,149,506


$           33,265


$      1,182,771

Depreciation, depletion and amortization - production (1)

54,262


1,047


55,309

Accretion on asset retirement obligations

6,788


5,113


11,901

Amortization of acquired intangibles, net

9,591


1,904


11,495

Total Cost of coal sales

$      1,220,147


$           41,329


$      1,261,476

Less: Freight and handling costs

(300,547)


(18)


(300,565)

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

(54,262)


(1,047)


(55,309)

Less: Accretion on asset retirement obligations

(6,788)


(5,113)


(11,901)

Less: Amortization of acquired intangibles, net

(9,591)


(1,904)


(11,495)

Less: Idled and closed mine costs

(6,312)


(7,202)


(13,514)

Non-GAAP Cost of coal sales

$         842,647


$           26,045


$         868,692

Tons sold

7,830


522


8,352

Non-GAAP Cost of coal sales per ton

$           107.62


$              49.89


$           104.01



(1)

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

 


Six Months Ended June 30, 2022

(In thousands, except for per ton data)

Met


All Other


Consolidated

Coal revenues

$      2,373,001


$           30,995


$      2,403,996

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

(1,220,147)


(41,329)


(1,261,476)

GAAP Coal margin

$      1,152,854


$          (10,334)


$      1,142,520

Tons sold

7,830


522


8,352

GAAP Coal margin per ton

$           147.24


$            (19.80)


$           136.80







GAAP Coal margin

$      1,152,854


$          (10,334)


$      1,142,520

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

54,262


1,047


55,309

Add: Accretion on asset retirement obligations

6,788


5,113


11,901

Add: Amortization of acquired intangibles, net

9,591


1,904


11,495

Add: Idled and closed mine costs

6,312


7,202


13,514

Non-GAAP Coal margin

$      1,229,807


$              4,932


$      1,234,739

Tons sold

7,830


522


8,352

Non-GAAP Coal margin per ton

$           157.06


$                9.45


$           147.84



(1)

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

 


Three Months Ended June 30, 2023

(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

1,543


$       271,083


$         175.69


39 %

Domestic

1,146


222,299


$         193.98


29 %

Export - Australian indexed

1,218


194,419


$         159.62


32 %

Total Met segment - met coal

3,907


687,801


$         176.04


100 %

Met segment - thermal coal

242


27,951


$         115.50



Total Met segment Coal revenues

4,149


715,752


$         172.51



All Other Coal revenues

199


19,833


$            99.66



Non-GAAP Coal revenues

4,348


735,585


$         169.18



Add: Freight and handling fulfillment revenues


118,222





Coal revenues

4,348


$       853,807





 

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SOURCE Alpha Metallurgical Resources, Inc.

FAQ

What is Alpha Metallurgical Resources' net income for Q2 2023?

Alpha Metallurgical Resources reports net income of $181.4 million for Q2 2023.

What is the adjusted EBITDA for Alpha Metallurgical Resources in Q2 2023?

Alpha Metallurgical Resources reports adjusted EBITDA of $258.5 million for Q2 2023.

What is the dividend declared by Alpha Metallurgical Resources?

Alpha Metallurgical Resources declares a quarterly dividend of $0.50 per share.

What is the full-year volume guidance for thermal coal within the Met segment?

Alpha Metallurgical Resources reduces full-year volume guidance for thermal coal within the Met segment to 1.0 million to 1.4 million tons.

Alpha Metallurgical Resources, Inc.

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