Contura Announces Second Quarter 2020 Results
BRISTOL, Tenn., Aug. 7, 2020 /PRNewswire/ -- Contura Energy, Inc. (NYSE: CTRA), a leading U.S. coal supplier, today reported results for the second quarter ending June 30, 2020.
(millions, except per share) Three months ended June 30, 2020 Mar. 31, 2020 June 30, 2019(2) Net (loss) income(3) $(238.3) $(39.8) $24.3 Net (loss) income(3) per diluted share $(13.02) $(2.18) $1.25 Adjusted EBITDA(1) $16.9 $60.2 $140.8 Operating cash flow(4) $79.0 $(0.1) $102.5 Capital expenditures $(41.5) $(49.6) $(42.8) Tons of coal sold 5.1 5.5 6.4
__________________________________ 1. These are non-GAAP financial measures. A reconciliation of Net Income to Adjusted EBITDA is included in tables accompanying the financial schedules. 2. Excludes discontinued operations, except as noted. 3. From continuing operations. First and second quarters 2020 no longer have discontinued operations. 4. Includes discontinued operations. First and second quarters 2020 no longer have discontinued operations.
"Our second quarter results serve as continued evidence of Contura's commitment to adeptly managing through the current global uncertainty," said chairman and chief executive officer, David Stetson. "Even with a weeks-long furlough in April, our team increased our cash quarter-over-quarter, lowered our overall debt, and kept costs roughly on par with our stellar first quarter cost performance. As we look to the back half of 2020, we believe these steps to streamline our company will serve us well despite any additional market fluctuations that may occur."
Financial Performance
Contura reported a net loss from continuing operations of $238.3 million, or $13.02 per diluted share, for the second quarter 2020. The second quarter loss includes a pre-tax, non-cash asset impairment charge of $161.7 million, which resulted primarily from our strategic decisions to idle the Kielty mine and not pursue the new impoundment at Cumberland resulting in a significantly shorter mine life. In the first quarter 2020, the company had a net loss from continuing operations, including non-cash asset impairment charges of $33.7 million, of $39.8 million or $2.18 diluted share.
Total Adjusted EBITDA was $17 million for the second quarter, compared with $60 million in the first quarter, primarily due to lower CAPP - Met price realizations.
Coal Revenues
(millions) Three months ended June 30, 2020 Mar. 31, 2020 CAPP -Met $316.3 $362.4 CAPP -Thermal $36.7 $38.7 NAPP $57.5 $66.9 CAPP -Met (excl. f&h) (1) $261.5 $308.7 CAPP -Thermal (excl. f&h) (1) $32.1 $35.0 NAPP (excl. f&h) (1) $52.0 $64.6 Tons Sold (millions) --- Three months ended June 30, 2020 Mar. 31, 2020 CAPP -Met 3.2 3.3 CAPP -Thermal 0.6 0.6 NAPP 1.3 1.5
__________________________________ 1. Represents Non-GAAP coal revenues which is defined and reconciled under "Non-GAAP Financial Measures" and "Results of Operations."
The CAPP - Met revenue decline in the second quarter was driven by an $11 per ton decline in price realizations relative to the first quarter. CAPP - Thermal revenues also declined quarter-over-quarter due to lower realized prices. Second quarter NAPP revenues were lower as a result of lower volumes and prices.
Coal Sales Realization((1))
(per ton) Three months ended June 30, 2020 Mar. 31, 2020 CAPP -Met $81.61 $92.80 CAPP -Thermal $49.52 $56.73 NAPP $40.19 $42.81
__________________________________ 1. Represents Non-GAAP coal sales realization which is defined and reconciled under "Non-GAAP Financial Measures" and "Results of Operations."
The second quarter 2020 metallurgical coal prices continued softening, with our average CAPP - Met coal sales realization declining 12 percent to $81.61 per ton against the prior quarter. While our domestic business continues to benefit from annual fixed price contracts, the lower second quarter realizations were primarily driven by our export business, where prices declined as a result of COVID-19 related demand reduction. Thermal coal price realizations were also impacted by reduced demand in the second quarter with both CAPP - Thermal and NAPP segments experiencing lower realizations.
Cost of Coal Sales
(in millions, except per ton data) Three months ended June 30, 2020 Mar. 31, 2020 Cost of Coal Sales $383.3 $397.9 Cost of Coal Sales (excl. f&h/idle) (1) $310.5 $328.1 (per ton) CAPP -Met (1) $74.41 $70.68 CAPP -Thermal (1) $45.38 $53.07 NAPP (1) $32.98 $39.68
__________________________________ 1. Represents Non-GAAP cost of coal sales per ton which is defined and reconciled under "Non-GAAP Financial Measures" and "Results of Operations."
Contura achieved continued strong cost performance in its CAPP - Met segment in the second quarter. The reported second quarter cost of coal sales was $74.41 per ton versus $70.68 per ton in the first quarter. Excluding the impact of the April furloughs, incremental one-time COVID-19 mitigation costs, and the partially offsetting benefit from an annual severance tax adjustment, the second quarter cost of coal sales were roughly on par with first quarter.
NAPP cost of coal sales for the quarter was $32.98 per ton, down from $39.68 per ton in the first quarter, which was impacted by a longwall move in March. CAPP - Thermal also reported solid cost of coal sales performance, improving to $45.38 per ton for the quarter as compared to $53.07 for the prior quarter.
Selling, general and administrative (SG&A) and depreciation, depletion and amortization (DD&A) expenses
(millions) Three months ended June 30, 2020 Mar. 31, 2020 SG&A $12.0 $15.5 Less: non-cash stock compensation and one-time expenses $(1.9) $(2.1) Non-GAAP SG&A(1) $10.1 $13.4 DD&A $49.3 $54.5
__________________________________ 1. Represents Non-GAAP SG&A which is defined under "Non-GAAP Financial Measures."
As a result of additional overhead reductions, Contura's second quarter 2020 SG&A expenses were $10.1 million, excluding non-cash stock compensation expense and one-time expenses of $1.9 million, and down $3.3 million from the prior quarter. Contura expects non-GAAP SG&A expenses for the full year 2020 to be in the range of $45 million to $50 million.
Liquidity and Capital Resources
"In response to the wide-ranging impacts of the COVID-19 pandemic, we took aggressive action in early April to optimize cash by temporarily idling certain operations, which resulted in a $41 million reduction in inventory and overall net working capital change of $99 million in the second quarter," said Andy Eidson, Contura's chief financial officer. "As we continue to analyze our liquidity, we expect capex for the remainder of the year to be in the $45-$50 million range, and we still anticipate receiving an accelerated AMT tax refund of approximately $66 million in the second half of the year and approximately $14 million of payroll tax deferrals until 2021 and 2022."
Cash provided by operating activities for the second quarter 2020 was $79.0 million and capital expenditures for the second quarter were $41.5 million. In the prior period, the cash used in operating activities was $0.1 million and capital expenditures were $49.6 million. Contura expects capital expenditures for the full year 2020 to be in the range of $135 million to $140 million.
As of June 30, 2020, Contura had $238.4 million in unrestricted cash and $157.5 million in restricted cash, deposits and investments. Total long-term debt, including the current portion of long-term debt as of June 30, 2020, was $628.1 million, down approximately $25 million from the prior quarter. At the end of the second quarter, the company had total liquidity of $240.2 million, including cash and cash equivalents of $238.4 million and $1.8 million of unused commitments available under the Asset-Based Revolving Credit Facility. The future available capacity under the Asset-Based Revolving Credit Facility is subject to inventory and accounts receivable collateral requirements and the achievement of certain financial ratios. As of June 30, 2020, the company had $30.8 million in borrowings and $121.7 million in letters of credit outstanding under the Asset-Based Revolving Credit Facility.
Operational and Strategic Update
As previously announced, certain operations were temporarily idled in early April in response to market conditions, inventory levels and expected customer deferrals. As of May 4, all Contura sites were back to nearly normal staffing levels and operating capacity with additional precautions in place to help reduce the risk of exposure to COVID-19.
On May 29, two previously wholly-owned subsidiaries of Contura Energy--Contura Coal West, LLC and Contura Wyoming Land, LLC--merged with certain subsidiaries of Eagle Specialty Materials, LLC. In completing this transaction, Contura ended its connection with the Powder River Basin.
On June 22, the company announced that its Ruby Energy (also known as Kielty) underground mine and the Delbarton Preparation Plant were to be idled due to adverse market conditions and uneconomic pricing and cost structures. Kielty produces both thermal and metallurgical coal.
During the second quarter, the company also decided against spending over $60 million for a refuse impoundment at Cumberland Mine and amended its supply agreements to expire as of December 31, 2022. Unless a buyer emerges for the Cumberland Mine, the company will cease operations upon the expiration of its outstanding coal supply commitments in late 2022 or early 2023.
Also in June, the company completed the acquisition of the Feats Loadout facility in Logan County, West Virginia, which is served by the CSX railroad. With this transaction, Contura adds transportation optionality to its existing network and increased ability to leverage low vol metallurgical coal sales opportunities through Dominion Terminal Associates.
Looking ahead, the company continues to progress on its capital projects and its shift to higher-quality, lower-cost mines. "Even in spite of the disruptions caused by the COVID-19 pandemic, development at our new metallurgical mines remains on schedule," said Jason Whitehead, Contura's chief operating officer. "The low vol Road Fork No. 52 Mine added a second production section in mid-June, and will be positioned to be at three sections by the first of 2021, while the high vol project at Lynn Branch has completed initial underground cuts and expects to be in production by the fourth quarter of this year. The Black Eagle Mine, our high vol A project, is progressing well through the corridor to the main reserve block, which we anticipate to be in production by next year."
Conference Call
The company plans to hold a conference call regarding its second quarter 2020 results on August 7, 2020, at 10:00 a.m. Eastern time. The conference call will be available live on the investor section of the company's website at https://investors.conturaenergy.com/investors. Analysts who would like to participate in the conference call should dial 866-270-1533 (domestic toll-free) or 412-317-0797 (international) approximately 15 minutes prior to the start of the call.
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
423.956.6882
MEDIA CONTACT
corporatecommunications@conturaenergy.com
Emily O'Quinn
423.573.0369
FINANCIAL TABLES FOLLOW
Non-GAAP Financial Measures
The discussion below contains "non-GAAP financial measures." These are financial measures which either exclude or include amounts that are not excluded or included in the most directly comparable measures calculated and presented in accordance with generally accepted accounting principles in the United States ("U.S. GAAP" or "GAAP"). Specifically, we make use of the non-GAAP financial measures "Adjusted EBITDA," "non-GAAP coal revenues," "non-GAAP cost of coal sales," and "Adjusted cost of produced coal sold." We use Adjusted EBITDA to measure the operating performance of our segments and allocate resources to the segments. Adjusted EBITDA does not purport to be an alternative to net income (loss) as a measure of operating performance. 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, idled and closed mine costs and coal inventory acquisition accounting impacts. Non-GAAP cost of coal sales per ton for our operations is calculated as non-GAAP cost of coal sales divided by tons sold. Non-GAAP coal margin per ton for our coal operations is calculated as non-GAAP coal sales realization per ton for our coal operations less non-GAAP cost of coal sales per ton for our coal operations. We also use Adjusted cost of produced coal sold to distinguish the cost of captive produced coal from the effects of purchased coal. The presentation of these measures should not be considered in isolation, or as a substitute for analysis of our results as reported under GAAP.
Management uses non-GAAP financial measures to supplement GAAP results to provide a more complete understanding of the factors and trends affecting the business than GAAP results alone. The definition of these non-GAAP measures may be changed periodically by management to adjust for significant items important to an understanding of operating trends and to adjust for items that may not reflect the trend of future results by excluding transactions that are not indicative of our core operating performance. Furthermore, analogous measures are used by industry analysts to evaluate the Company's operating performance. Because not all companies use identical calculations, the presentations of these measures may not be comparable to other similarly titled measures of other companies and can differ significantly from company to company depending on long-term strategic decisions regarding capital structure, the tax jurisdictions in which companies operate, and capital investments.
Included below are reconciliations of non-GAAP financial measures to GAAP financial measures.
CONTURA ENERGY, 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, 2020 2019 2020 2019 Revenues: Coal revenues $ 410,614 $ 653,828 $ 878,981 $ 1,260,788 Other revenues 1,224 2,378 3,317 4,532 Total revenues 411,838 656,206 882,298 1,265,320 Costs and expenses: Cost of coal sales (exclusive of items shown separately below) 383,279 496,746 781,139 1,012,440 Depreciation, depletion and amortization 49,262 62,814 103,727 124,085 Accretion on asset retirement obligations 7,304 6,847 14,679 13,079 Amortization of acquired intangibles, net 2,096 (343) 2,961 (7,026) Asset impairment and restructuring 184,173 5,826 217,882 5,826 Selling, general and administrative expenses (exclusive of depreciation, depletion and amortization shown separately above) 12,028 14,783 27,509 35,734 Merger-related costs - 156 987 Total other operating (income) loss: Mark-to-market adjustment for acquisition-related obligations (2,052) 1,014 (17,049) 2,950 Other (income) expense (124) 1,414 (704) (7,485) Total costs and expenses 635,966 589,257 1,130,144 1,180,590 (Loss) income from operations (224,128) 66,949 (247,846) 84,730 Other income (expense): Interest expense (18,814) (16,077) (36,419) (31,232) Interest income 5,533 1,885 6,511 3,821 Loss on modification and extinguishment of debt - (26,459) (26,459) Equity loss in affiliates (1,047) (2,475) (1,790) (2,959) Miscellaneous loss, net 188 (523) (720) (1,389) Total other expense, net (14,140) (43,649) (32,418) (58,218) (Loss) income from continuing operations before income taxes (238,268) 23,300 (280,264) 26,512 Income tax (expense) benefit (33) 1,000 2,155 5,778 Net (loss) income from continuing operations (238,301) 24,300 (278,109) 32,290 Discontinued operations: Loss from discontinued operations before income taxes - (163,867) (165,457) Income tax benefit from discontinued operations - 25,906 26,321 Loss from discontinued operations - (137,961) (139,136) Net loss $ (238,301) $ (113,661) $ (278,109) $ (106,846) Basic loss per common share: (Loss) income from continuing operations $ (13.02) $ 1.27 $ (15.22) $ 1.70 Loss from discontinued operations - (7.21) (7.32) Net loss $ (13.02) $ (5.94) $ (15.22) $ (5.62) Diluted loss per common share (Loss) income from continuing operations $ (13.02) $ 1.25 $ (15.22) $ 1.66 Loss from discontinued operations - (7.10) (7.14) Net loss $ (13.02) $ (5.85) $ (15.22) $ (5.48) Weighted average shares - basic 18,304,853 19,123,705 18,275,382 19,009,643 Weighted average shares - diluted 18,304,853 19,420,471 18,275,382 19,480,183
CONTURA ENERGY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Amounts in thousands, except share and per share data) June 30, 2020 December 31, 2019 Assets Current assets: Cash and cash equivalents $ 238,438 $ 212,793 Trade accounts receivable, net of allowance for doubtful accounts of $793 and $0 as of June 30, 2020 and December 31, 2019 183,820 244,666 Inventories, net 143,198 162,659 Prepaid expenses and other current assets 122,354 91,361 Total current assets 687,810 711,479 Property, plant, and equipment, net of accumulated depreciation and amortization of $351,561 and $314,276 as of June 30, 2020 and December 31, 2019 423,367 583,262 Owned and leased mineral rights, net of accumulated depletion and amortization of $34,961 and $27,877 as of June 30, 2020 and December 31, 2019 495,303 523,141 Other acquired intangibles, net of accumulated amortization of $35,717 and $32,686 as of June 30, 2020 and December 31, 2019 103,439 125,145 Long-term restricted cash 109,930 122,524 Deferred income taxes - 33,065 Other non-current assets 220,389 204,207 Total assets $ 2,040,238 $ 2,302,823 Liabilities and Stockholders' Equity Current liabilities: Current portion of long-term debt $ 30,390 $ 28,485 Trade accounts payable 70,027 98,746 Acquisition-related obligations - current 30,019 33,639 Accrued expenses and other current liabilities 161,453 154,282 Total current liabilities 291,889 315,152 Long-term debt 597,706 564,481 Acquisition-related obligations - long- term 18,283 46,259 Workers' compensation and black lung obligations 266,390 260,778 Pension obligations 198,582 204,086 Asset retirement obligations 207,001 184,130 Deferred income taxes 389 422 Other non-current liabilities 50,583 31,393 Total liabilities 1,630,823 1,606,701 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 December 31, 2019 million shares authorized, 20.6 million issued and 18.3 million outstanding at June 30, 2020 and 20.5 million issued and 18.2 million outstanding at 206 205 Additional paid-in capital 777,650 775,707 Accumulated other comprehensive loss (69,747) (58,616) Treasury stock, at cost: 2.3 million shares at June 30, 2020 and December 31, 2019 (106,955) (107,984) Retained earnings (191,739) 86,810 Total stockholders' equity 409,415 696,122 Total liabilities and stockholders' equity $ 2,040,238 $ 2,302,823
CONTURA ENERGY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (Amounts in thousands) Six Months Ended June 30, 2020 2019 Operating activities: Net loss $ (278,109) $ (106,846) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation, depletion and amortization 103,727 269,997 Amortization of acquired intangibles, net 2,961 (7,026) Accretion of acquisition-related obligations discount 2,227 3,220 Amortization of debt issuance costs and accretion of debt discount 7,389 6,724 Mark-to-market adjustment for acquisition-related obligations (17,049) 2,950 (Gain) loss on disposal of assets (755) 1,372 Gain on assets acquired in an exchange transaction - (9,083) Loss on modification and extinguishment of debt - 26,459 Asset impairment and restructuring 217,882 22,294 Accretion on asset retirement obligations 14,679 13,079 Employee benefit plans, net 10,605 9,564 Deferred income taxes 33,032 (33,623) Stock-based compensation 3,121 4,774 Equity loss in affiliates 1,790 2,959 Other, net 92 405 Changes in operating assets and liabilities (22,654) (90,086) Net cash provided by operating activities 78,938 117,133 Investing activities: Capital expenditures (91,090) (83,882) Proceeds on disposal of assets 1,285 1,048 Purchases of investment securities (18,607) (9,899) Maturity of investment securities 10,653 21,316 Capital contributions to equity affiliates (2,416) (4,807) Other, net 47 93 Net cash used in investing activities (100,128) (76,131) Financing activities: Proceeds from borrowings on debt 57,500 544,946 Principal repayments of debt (29,559) (550,000) Principal repayments of notes payable (574) (821) Principal repayments of financing lease obligations (1,614) (2,100) Debt issuance costs - (5,839) Common stock repurchases and related expenses (155) (4,874) Other, net - 914 Net cash provided by (used in) financing activities 25,598 (17,774) Net increase in cash and cash equivalents and restricted cash 4,408 23,228 Cash and cash equivalents and restricted cash at beginning of period 347,680 477,246 Cash and cash equivalents and restricted cash at end of period $ 352,088 $ 500,474
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, 2020 2019 Cash and cash equivalents $ 238,438 $ 249,597 Short-term restricted cash (included in prepaid expenses and other current assets) 3,720 34,309 Long-term restricted cash 109,930 216,568 Total cash and cash equivalents and restricted cash shown in the Condensed Consolidated Statements of Cash Flows $ 352,088 $ 500,474
CONTURA ENERGY, INC. AND SUBSIDIARIES ADJUSTED EBITDA RECONCILIATION (Amounts in thousands) Three Months Ended Six Months Ended June 30, March 31, 2020 June 30, 2020 June 30, 2019 2020 2019 Net (loss) income from continuing operations $ (39,808) $ (238,301) $ 24,300 $ (278,109) $ 32,290 Interest expense 17,605 18,814 16,077 36,419 31,232 Interest income (978) (5,533) (1,885) (6,511) (3,821) Income tax (benefit) expense (2,188) 33 (1,000) (2,155) (5,778) Depreciation, depletion and amortization 54,465 49,262 62,814 103,727 124,085 Merger-related costs - 156 987 Management restructuring costs (1) 947 947 Non-cash stock compensation expense 2,078 1,044 (546) 3,122 4,725 Mark-to-market adjustment - acquisition-related obligations (14,997) (2,052) 1,014 (17,049) 2,950 Accretion on asset retirement obligations 7,375 7,304 6,847 14,679 13,079 Loss on modification and extinguishment of debt - 26,459 26,459 Asset impairment and restructuring (2) 33,709 184,173 5,826 217,882 5,826 Cost impact of coal inventory fair value adjustment (3) - 1,033 8,209 Gain on assets acquired in an exchange transaction (4) - (9,083) Loss on partial settlement of benefit obligations 1,167 63 1,230 Amortization of acquired intangibles, net 865 2,096 (343) 2,961 (7,026) Adjusted EBITDA $ 60,240 $ 16,903 $ 140,752 $ 77,143 $ 224,134
(1) Management restructuring costs are related to severance expense associated with senior management changes. (2) Asset impairment and restructuring for the six months ended June 30, 2020 includes long-lived asset impairments of $195,447 and restructuring expense of $22,435 as a result of continued weakening coal prices and the strategic actions with respect to two thermal coal mining complexes. Asset impairment for the six months ended June 30, 2019 primarily related to the write-off of prepaid purchased coal from Blackjewel as a result of Blackjewel's Chapter 11 bankruptcy filing on July 1, 2019. (3) The cost impact of the coal inventory fair value adjustment as a result of the Alpha Merger was completed during the three months ended June 30, 2019. (4) During the six months ended June 30, 2019, the Company entered into an exchange transaction which primarily included the release of the PRB overriding royalty interest owed to the Company in exchange for met coal reserves which resulted in a gain of $9,083.
CONTURA ENERGY, INC. AND SUBSIDIARIES RESULTS OF OPERATIONS Three Months Ended March 31, 2020 (In thousands, except for per ton data) CAPP -Met CAPP - NAPP All Other Consolidated Thermal Coal revenues $ 362,403 $ 38,743 $ 66,907 $ 314 $ 468,367 Less: Freight and handling fulfillment revenues (53,664) (3,743) (2,346) (59,753) Non-GAAP Coal revenues $ 308,739 $ 35,000 $ 64,561 $ 314 $ 408,614 Tons sold 3,327 617 1,508 5 5,457 Non-GAAP Coal sales realization per ton $ 92.80 $ 56.73 $ 42.81 $ 62.80 $ 74.88 Cost of coal sales (exclusive of items shown separately below) $ 292,972 $ 38,482 $ 63,013 $ 3,393 $ 397,860 Depreciation, depletion and amortization - production (1) 41,722 4,849 6,849 691 54,111 Accretion on asset retirement obligations 3,502 2,352 770 751 7,375 Amortization of acquired intangibles, net 2,581 (2,095) 354 25 865 Total Cost of coal sales $ 340,777 $ 43,588 $ 70,986 $ 4,860 $ 460,211 Less: Freight and handling costs (53,664) (3,743) (2,346) (59,753) Less: Depreciation, depletion and amortization - production (1) (41,722) (4,849) (6,849) (691) (54,111) Less: Accretion on asset retirement obligations (3,502) (2,352) (770) (751) (7,375) Less: Amortization of acquired intangibles, net (2,581) 2,095 (354) (25) (865) Less: Idled and closed mine costs (4,157) (1,995) (825) (3,079) (10,056) Non-GAAP Cost of coal sales $ 235,151 $ 32,744 $ 59,842 $ 314 $ 328,051 Tons sold 3,327 617 1,508 5 5,457 Non-GAAP Cost of coal sales per ton $ 70.68 $ 53.07 $ 39.68 $ 62.80 $ 60.12
(1) Depreciation, depletion and amortization -production excludes the depreciation, depletion and amortization related to selling, general and administrative functions.
Three Months Ended March 31, 2020 (In thousands, except for per ton data) CAPP -Met CAPP - NAPP All Other Consolidated Thermal Coal revenues $ 362,403 $ 38,743 $ 66,907 $ 314 $ 468,367 Less: Total Cost of coal sales (per table above) (340,777) (43,588) (70,986) (4,860) (460,211) GAAP Coal margin $ 21,626 $ (4,845) $ (4,079) $ (4,546) $ 8,156 Tons sold 3,327 617 1,508 5 5,457 GAAP Coal margin per ton $ 6.50 $ (7.85) $ (2.70) $ (909.20) $ 1.49 GAAP Coal margin $ 21,626 $ (4,845) $ (4,079) $ (4,546) $ 8,156 Add: Depreciation, depletion and amortization - production (1) 41,722 4,849 6,849 691 54,111 Add: Accretion on asset retirement obligations 3,502 2,352 770 751 7,375 Add: Amortization of acquired intangibles, net 2,581 (2,095) 354 25 865 Add: Idled and closed mine costs 4,157 1,995 825 3,079 10,056 Non-GAAP Coal margin $ 73,588 $ 2,256 $ 4,719 $ $ 80,563 Tons sold 3,327 617 1,508 5 5,457 Non-GAAP Coal margin per ton $ 22.12 $ 3.66 $ 3.13 $ $ 14.76
(1) Depreciation, depletion and amortization -production excludes the depreciation, depletion and amortization related to selling, general and administrative functions.
Three Months Ended June 30, 2020 (In thousands, except for per ton data) CAPP -Met CAPP - NAPP All Other Consolidated Thermal Coal revenues $ 316,319 $ 36,720 $ 57,499 $ 76 $ 410,614 Less: Freight and handling fulfillment revenues (54,852) (4,634) (5,492) (64,978) Non-GAAP Coal revenues $ 261,467 $ 32,086 $ 52,007 $ 76 $ 345,636 Tons sold 3,204 648 1,294 1 5,147 Non-GAAP Coal sales realization per ton $ 81.61 $ 49.52 $ 40.19 $ 76.00 $ 67.15 Cost of coal sales (exclusive of items shown separately below) $ 297,169 $ 35,709 $ 48,732 $ 1,669 $ 383,279 Depreciation, depletion and amortization - production (1) 38,800 7,260 2,172 694 48,926 Accretion on asset retirement obligations 3,517 2,267 769 751 7,304 Amortization of acquired intangibles, net 2,759 (903) 215 25 2,096 Total Cost of coal sales $ 342,245 $ 44,333 $ 51,888 $ 3,139 $ 441,605 Less: Freight and handling costs (54,852) (4,634) (5,492) (64,978) Less: Depreciation, depletion and amortization - production (1) (38,800) (7,260) (2,172) (694) (48,926) Less: Accretion on asset retirement obligations (3,517) (2,267) (769) (751) (7,304) Less: Amortization of acquired intangibles, net (2,759) 903 (215) (25) (2,096) Less: Idled and closed mine costs (3,906) (1,670) (566) (1,669) (7,811) Non-GAAP Cost of coal sales $ 238,411 $ 29,405 $ 42,674 $ $ 310,490 Tons sold 3,204 648 1,294 1 5,147 Non-GAAP Cost of coal sales per ton $ 74.41 $ 45.38 $ 32.98 $ $ 60.32
(1) Depreciation, depletion and amortization -production excludes the depreciation, depletion and amortization related to selling, general and administrative functions.
Three Months Ended June 30, 2020 (In thousands, except for per ton data) CAPP -Met CAPP - NAPP All Other Consolidated Thermal Coal revenues $ 316,319 $ 36,720 $ 57,499 $ 76 $ 410,614 Less: Total Cost of coal sales (per table above) (342,245) (44,333) (51,888) (3,139) (441,605) GAAP Coal margin $ (25,926) $ (7,613) $ 5,611 $ (3,063) $ (30,991) Tons sold 3,204 648 1,294 1 5,147 GAAP Coal margin per ton $ (8.09) $ (11.75) $ 4.34 $ (3,063.00) $ (6.02) GAAP Coal margin $ (25,926) $ (7,613) $ 5,611 $ (3,063) $ (30,991) Add: Depreciation, depletion and amortization - production (1) 38,800 7,260 2,172 694 48,926 Add: Accretion on asset retirement obligations 3,517 2,267 769 751 7,304 Add: Amortization of acquired intangibles, net 2,759 (903) 215 25 2,096 Add: Idled and closed mine costs 3,906 1,670 566 1,669 7,811 Non-GAAP Coal margin $ 23,056 $ 2,681 $ 9,333 $ 76 $ 35,146 Tons sold 3,204 648 1,294 1 5,147 Non-GAAP Coal margin per ton $ 7.20 $ 4.14 $ 7.21 $ 76.00 $ 6.83
(1) Depreciation, depletion and amortization -production excludes the depreciation, depletion and amortization related to selling, general and administrative functions.
Three Months Ended June 30, 2019 (In thousands, except for per ton data) CAPP -Met CAPP - NAPP All Other Consolidated Thermal Coal revenues $ 494,093 $ 81,701 $ 78,034 $ $ 653,828 Less: Freight and handling fulfillment revenues (67,728) (8,190) (1,794) (77,712) Non-GAAP Coal revenues $ 426,365 $ 73,511 $ 76,240 $ $ 576,116 Tons sold 3,429 1,189 1,747 6,365 Non-GAAP Coal sales realization per ton $ 124.34 $ 61.83 $ 43.64 $ $ 90.51 Cost of coal sales (exclusive of items shown separately below) $ 369,703 $ 69,932 $ 56,433 $ 678 $ 496,746 Depreciation, depletion and amortization - production (1) 38,829 16,502 6,522 609 62,462 Accretion on asset retirement obligations 2,327 2,666 1,016 838 6,847 Amortization of acquired intangibles, net 3,870 (4,213) (343) Total Cost of coal sales $ 414,729 $ 84,887 $ 63,971 $ 2,125 $ 565,712 Less: Freight and handling costs (67,728) (8,190) (1,794) (77,712) Less: Depreciation, depletion and amortization - production (1) (38,829) (16,502) (6,522) (609) (62,462) Less: Accretion on asset retirement obligations (2,327) (2,666) (1,016) (838) (6,847) Less: Amortization of acquired intangibles, net (3,870) 4,213 343 Less: Idled and closed mine costs (2,165) (567) (733) (886) (4,351) Less: Cost impact of coal inventory fair value adjustment (2) (1,033) (1,033) Non-GAAP Cost of coal sales $ 298,777 $ 61,175 $ 53,906 $ (208) $ 413,650 Tons sold 3,429 1,189 1,747 6,365 Non-GAAP Cost of coal sales per ton $ 87.13 $ 51.45 $ 30.86 $ $ 64.99
(1) Depreciation, depletion and amortization -production excludes the depreciation, depletion and amortization related to selling, general and administrative functions. (2) The cost impact of the coal inventory fair value adjustment as a result of the Alpha Merger was completed during the three months ended June 30, 2019.
Three Months Ended June 30, 2019 (In thousands, except for per ton data) CAPP -Met CAPP - NAPP All Other Consolidated Thermal Coal revenues $ 494,093 $ 81,701 $ 78,034 $ $ 653,828 Less: Total Cost of coal sales (per table above) (414,729) (84,887) (63,971) (2,125) (565,712) GAAP Coal margin $ 79,364 $ (3,186) $ 14,063 $ (2,125) $ 88,116 Tons sold 3,429 1,189 1,747 6,365 GAAP Coal margin per ton $ 23.14 $ (2.68) $ 8.05 $ $ 13.84 GAAP Coal margin $ 79,364 $ (3,186) $ 14,063 $ (2,125) $ 88,116 Add: Depreciation, depletion and amortization - production (1) 38,829 16,502 6,522 609 62,462 Add: Accretion on asset retirement obligations 2,327 2,666 1,016 838 6,847 Add: Amortization of acquired intangibles, net 3,870 (4,213) (343) Add: Idled and closed mine costs 2,165 567 733 886 4,351 Add: Cost impact of coal inventory fair value adjustment (2) 1,033 1,033 Non-GAAP Coal margin $ 127,588 $ 12,336 $ 22,334 $ 208 $ 162,466 Tons sold 3,429 1,189 1,747 6,365 Non-GAAP Coal margin per ton $ 37.21 $ 10.38 $ 12.78 $ $ 25.52
(1) Depreciation, depletion and amortization -production excludes the depreciation, depletion and amortization related to selling, general and administrative functions. (2) The cost impact of the coal inventory fair value adjustment as a result of the Alpha Merger was completed during the three months ended June 30, 2019.
Six Months Ended June 30, 2020 (In thousands, except for per ton data) CAPP -Met CAPP - NAPP All Other Consolidated Thermal Coal revenues $ 678,722 $ 75,463 $ 124,406 $ 390 $ 878,981 Less: Freight and handling fulfillment revenues (108,516) (8,377) (7,838) (124,731) Non-GAAP Coal revenues $ 570,206 $ 67,086 $ 116,568 $ 390 $ 754,250 Tons sold 6,531 1,265 2,802 6 10,604 Non-GAAP Coal sales realization per ton $ 87.31 $ 53.03 $ 41.60 $ 65.00 $ 71.13 Cost of coal sales (exclusive of items shown separately below) $ 590,141 $ 74,191 $ 111,745 $ 5,062 $ 781,139 Depreciation, depletion and amortization - production (1) 80,522 12,109 9,021 1,385 103,037 Accretion on asset retirement obligations 7,019 4,619 1,539 1,502 14,679 Amortization of acquired intangibles, net 5,340 (2,998) 569 50 2,961 Total Cost of coal sales $ 683,022 $ 87,921 $ 122,874 $ 7,999 $ 901,816 Less: Freight and handling costs (108,516) (8,377) (7,838) (124,731) Less: Depreciation, depletion and amortization - production (1) (80,522) (12,109) (9,021) (1,385) (103,037) Less: Accretion on asset retirement obligations (7,019) (4,619) (1,539) (1,502) (14,679) Less: Amortization of acquired intangibles, net (5,340) 2,998 (569) (50) (2,961) Less: Idled and closed mine costs (8,063) (3,665) (1,391) (4,748) (17,867) Non-GAAP Cost of coal sales $ 473,562 $ 62,149 $ 102,516 $ 314 $ 638,541 Tons sold 6,531 1,265 2,802 6 10,604 Non-GAAP Cost of coal sales per ton $ 72.51 $ 49.13 $ 36.59 $ 52.33 $ 60.22
(1) Depreciation, depletion and amortization -production excludes the depreciation, depletion and amortization related to selling, general and administrative functions.
Six Months Ended June 30, 2020 (In thousands, except for per ton data) CAPP -Met CAPP - NAPP All Other Consolidated Thermal Coal revenues $ 678,722 $ 75,463 $ 124,406 $ 390 $ 878,981 Less: Total Cost of coal sales (per table above) (683,022) (87,921) (122,874) (7,999) (901,816) GAAP Coal margin $ (4,300) $ (12,458) $ 1,532 $ (7,609) $ (22,835) Tons sold 6,531 1,265 2,802 6 10,604 GAAP Coal margin per ton $ (0.66) $ (9.85) $ 0.55 $ (1,268.17) $ (2.15) GAAP Coal margin $ (4,300) $ (12,458) $ 1,532 $ (7,609) $ (22,835) Add: Depreciation, depletion and amortization - production (1) 80,522 12,109 9,021 1,385 103,037 Add: Accretion on asset retirement obligations 7,019 4,619 1,539 1,502 14,679 Add: Amortization of acquired intangibles, net 5,340 (2,998) 569 50 2,961 Add: Idled and closed mine costs 8,063 3,665 1,391 4,748 17,867 Non-GAAP Coal margin $ 96,644 $ 4,937 $ 14,052 $ 76 $ 115,709 Tons sold 6,531 1,265 2,802 6 10,604 Non-GAAP Coal margin per ton $ 14.80 $ 3.90 $ 5.01 $ 12.67 $ 10.91
(1) Depreciation, depletion and amortization -production excludes the depreciation, depletion and amortization related to selling, general and administrative functions.
Six Months Ended June 30, 2019 (In thousands, except for per ton data) CAPP -Met CAPP - NAPP All Other Consolidated Thermal Coal revenues $ 966,584 $ 144,640 $ 149,564 $ $ 1,260,788 Less: Freight and handling fulfillment revenues (132,629) (13,814) (2,469) (148,912) Non-GAAP Coal revenues $ 833,955 $ 130,826 $ 147,095 $ $ 1,111,876 Tons sold 6,672 2,181 3,399 12,252 Non-GAAP Coal sales realization per ton $ 124.99 $ 59.98 $ 43.28 $ $ 90.75 Cost of coal sales (exclusive of items shown separately below) $ 745,622 $ 140,645 $ 123,995 $ 2,178 $ 1,012,440 Depreciation, depletion and amortization - production (1) 75,502 30,614 13,149 4,120 123,385 Accretion on asset retirement obligations 4,660 4,731 2,033 1,655 13,079 Amortization of acquired intangibles, net 1,050 (8,782) 706 (7,026) Total Cost of coal sales $ 826,834 $ 167,208 $ 139,883 $ 7,953 $ 1,141,878 Less: Freight and handling costs (132,629) (13,814) (2,469) (148,912) Less: Depreciation, depletion and amortization - production (1) (75,502) (30,614) (13,149) (4,120) (123,385) Less: Accretion on asset retirement obligations (4,660) (4,731) (2,033) (1,655) (13,079) Less: Amortization of acquired intangibles, net (1,050) 8,782 (706) 7,026 Less: Idled and closed mine costs (3,986) (984) (1,562) (2,181) (8,713) Less: Cost impact of coal inventory fair value adjustment (2) (4,751) (3,458) (8,209) Non-GAAP Cost of coal sales $ 604,256 $ 122,389 $ 119,964 $ (3) $ 846,606 Tons sold 6,672 2,181 3,399 12,252 Non-GAAP Cost of coal sales per ton $ 90.57 $ 56.12 $ 35.29 $ $ 69.10
(1) Depreciation, depletion and amortization -production excludes the depreciation, depletion and amortization related to selling, general and administrative functions. (2) The cost impact of the coal inventory fair value adjustment as a result of the Alpha Merger was completed during the three months ended June 30, 2019.
Six Months Ended June 30, 2019 (In thousands, except for per ton data) CAPP -Met CAPP - NAPP All Other Consolidated Thermal Coal revenues $ 966,584 $ 144,640 $ 149,564 $ $ 1,260,788 Less: Total Cost of coal sales (per table above) (826,834) (167,208) (139,883) (7,953) (1,141,878) GAAP Coal margin $ 139,750 $ (22,568) $ 9,681 $ (7,953) $ 118,910 Tons sold 6,672 2,181 3,399 12,252 GAAP Coal margin per ton $ 20.95 $ (10.35) $ 2.85 $ $ 9.71 GAAP Coal margin $ 139,750 $ (22,568) $ 9,681 $ (7,953) $ 118,910 Add: Depreciation, depletion and amortization - production (1) 75,502 30,614 13,149 4,120 123,385 Add: Accretion on asset retirement obligations 4,660 4,731 2,033 1,655 13,079 Add: Amortization of acquired intangibles, net 1,050 (8,782) 706 (7,026) Add: Idled and closed mine costs 3,986 984 1,562 2,181 8,713 Add: Cost impact of coal inventory fair value adjustment (2) 4,751 3,458 8,209 Non-GAAP Coal margin $ 229,699 $ 8,437 $ 27,131 $ 3 $ 265,270 Tons sold 6,672 2,181 3,399 12,252 Non-GAAP Coal margin per ton $ 34.43 $ 3.87 $ 7.98 $ $ 21.65
(1) Depreciation, depletion and amortization -production excludes the depreciation, depletion and amortization related to selling, general and administrative functions. (2) The cost impact of the coal inventory fair value adjustment as a result of the Alpha Merger was completed during the three months ended June 30, 2019.
Three Months Ended March 31, 2020 (In thousands, except for per ton data) CAPP -Met CAPP - NAPP All Other Consolidated Thermal Non-GAAP Cost of coal sales $ 235,151 $ 32,744 $ 59,842 $ 314 $ 328,051 Less: cost of purchased coal sold (30,334) (893) (31,227) Adjusted cost of produced coal sold $ 204,817 $ 31,851 $ 59,842 $ 314 $ 296,824 Produced tons sold 2,964 604 1,508 5 5,081 Adjusted cost of produced coal sold per ton (1) $ 69.10 $ 52.73 $ 39.68 $ 62.80 $ 58.42
(1) Cost of produced coal sold per ton for our operations is calculated as non-GAAP cost of produced coal sold divided by produced tons sold.
Three Months Ended June 30, 2020 (In thousands, except for per ton data) CAPP -Met CAPP - NAPP All Other Consolidated Thermal Non-GAAP Cost of coal sales $ 238,411 $ 29,405 $ 42,674 $ $ 310,490 Less: cost of purchased coal sold (22,932) (9) (22,941) Adjusted cost of produced coal sold $ 215,479 $ 29,396 $ 42,674 $ $ 287,549 Produced tons sold 2,896 647 1,294 1 4,838 Adjusted cost of produced coal sold per ton (1) $ 74.41 $ 45.43 $ 32.98 $ $ 59.44
(1) Cost of produced coal sold per ton for our operations is calculated as non-GAAP cost of produced coal sold divided by produced tons sold.
Three Months Ended June 30, 2019 (In thousands, except for per ton data) CAPP -Met CAPP - NAPP All Other Consolidated Thermal Non-GAAP Cost of coal sales $ 298,777 $ 61,175 $ 53,906 $ (208) $ 413,650 Less: cost of purchased coal sold (67,320) (2,443) (69,763) Adjusted cost of produced coal sold $ 231,457 $ 58,732 $ 53,906 $ (208) $ 343,887 Produced tons sold 2,819 1,144 1,747 5,710 Adjusted cost of produced coal sold per ton (1) $ 82.11 $ 51.34 $ 30.86 $ $ 60.23
(1) Cost of produced coal sold per ton for our operations is calculated as non-GAAP cost of produced coal sold divided by produced tons sold.
Six Months Ended June 30, 2020 (In thousands, except for per ton data) CAPP -Met CAPP - NAPP All Other Consolidated Thermal Non-GAAP Cost of coal sales $ 473,562 $ 62,149 $ 102,516 $ 314 $ 638,541 Less: cost of purchased coal sold (53,266) (902) (54,168) Adjusted cost of produced coal sold $ 420,296 $ 61,247 $ 102,516 $ 314 $ 584,373 Produced tons sold 5,860 1,251 2,802 6 9,919 Adjusted cost of produced coal sold per ton (1) $ 71.72 $ 48.96 $ 36.59 $ 52.33 $ 58.91
(1) Cost of produced coal sold per ton for our operations is calculated as non-GAAP cost of produced coal sold divided by produced tons sold.
Six Months Ended June 30, 2019 (In thousands, except for per ton data) CAPP -Met CAPP - NAPP All Other Consolidated Thermal Non-GAAP Cost of coal sales $ 604,256 $ 122,389 $ 119,964 $ (3) $ 846,606 Less: cost of purchased coal sold (146,859) (5,327) (152,186) Adjusted cost of produced coal sold $ 457,397 $ 117,062 $ 119,964 $ (3) $ 694,420 Produced tons sold 5,390 2,088 3,399 10,877 Adjusted cost of produced coal sold per ton (1) $ 84.86 $ 56.06 $ 35.29 $ $ 63.84
(1) Cost of produced coal sold per ton for our operations is calculated as non-GAAP cost of produced coal sold divided by produced tons sold.
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SOURCE Contura Energy, Inc.