Alliance Resource Partners, L.P. Reports Quarterly and Annual Financial and Operating Results; Maintains Quarterly Cash Distribution of $0.675 Per Unit
Alliance Resource Partners, L.P. (NASDAQ: ARLP) today reported financial
and operating results for the year ended December 31, 2015 (the "2015
Year"), which included record volumes of coal produced and sold.
Revenues for the 2015 Year decreased to $2.27 billion, a decline of 1.2%
compared to the year ended December 31, 2014 (the "2014 Year"), as a
3.5% decrease in coal sales prices offset record coal sales volumes.
Lower revenues and the net $77.6 million impact in the 2015 Year of
non-cash items led to reduced EBITDA of $670.0 million for the 2015
Year, a decrease of 16.7% compared to the 2014 Year. These factors also
drove ARLP’s net income lower by 38.4% in the 2015 Year to $306.2
million, or $2.11 per basic and diluted limited partner unit. Excluding
these non-cash items discussed below in more detail, Adjusted EBITDA for
the 2015 Year was $747.2 million and Adjusted net income was $383.8
million, a decrease of 7.0% and 22.8%, respectively, compared to the
2014 Year. (For a discussion of EBITDA, Adjusted EBITDA, Adjusted net
income and related reconciliations to comparable financial measures
under accounting principles generally accepted in the United States
("GAAP"), please see the end of this release.)
ARLP’s results for the quarter ended December 31, 2015 (the "2015
Quarter") were also lower compared to the quarter ended December 31,
2014 (the "2014 Quarter"). Total revenues declined 8.2% to $542.2
million, compared to the 2014 Quarter, as coal sales fell due to lower
coal sales prices and reduced sales tons reflecting customer deferrals
of scheduled coal shipments and, as anticipated, the decrease of other
sales and operating revenues following ARLP’s acquisition of the
remaining equity interests in White Oak Resources LLC ("White Oak ") and
the assumption of operating control of the White Oak Mine No. 1 (now
known as the "Hamilton Mine No. 1 ") on July 31, 2015 (the "White Oak
Acquisition"). Lower revenues and the $66.9 million net impact of
non-cash items drove net income and EBITDA lower in the 2015 Quarter
compared to the 2014 Quarter, as net income decreased 82.6% to $21.5
million, or $(0.19) per basic and diluted limited partner unit, and
EBITDA decreased 40.8% to $120.0 million. Excluding these non-cash items
from the 2015 Quarter, ARLP’s Adjusted EBITDA was $186.8 million and
Adjusted net income was $88.4 million, a decrease of 7.7% and 28.6%,
respectively, compared to the 2014 Quarter.
ARLP also announced that the Board of Directors of its managing general
partner (the "Board") approved a cash distribution to unitholders for
the 2015 Quarter of $0.675 per unit (an annualized rate of $2.70 per
unit), payable on February 12, 2016 to all unitholders of record as of
the close of trading on February 5, 2016. The announced distribution
represents a 3.8% increase over the cash distribution of $0.65 per unit
for the 2014 Quarter and is equal to the amount paid in the quarter
ended September 30, 2015 (the "Sequential Quarter").
"During 2015, ARLP maintained its position as a leader in the coal
industry. Our operations and marketing teams produced and sold record
volumes leading ARLP to deliver profits and solid cash flows in what was
arguably one of the most challenging years in the history of our
industry," said Joseph W. Craft III, President and Chief Executive
Officer. "Faced with weak power demand, persistently low natural gas
prices, ongoing regulatory pressures and an oversupplied coal market, we
were able to achieve these results relying on ARLP’s long-term sales
agreements and our ability to reduce operating expenses and capital
expenditures. In response to lower demand and unsustainably low spot
coal pricing, we adjusted ARLP’s operating portfolio and shuttered
certain higher-cost operations, which led to non-cash impairments that
reduced our financial results for the 2015 Quarter and Year."
Consolidated Financial Results
Year Ended December 31, 2015 Compared to Year Ended December 31, 2014
Coal sales revenues in the 2015 Year declined as a result of lower coal
prices partially offset by increased coal sales volumes at the Tunnel
Ridge and Gibson South mines in addition to coal sales volumes from our
recent acquisition of the Hamilton Mine No. 1. ARLP set new records in
the 2015 Year for both tons sold, which increased 1.3% to 40.2 million
tons, and tons produced, which rose 1.1% to 41.2 million tons, both as
compared to the 2014 Year.
ARLP’s other sales and operating revenue increased $16.0 million in the
2015 Year primarily due to White Oak’s start-up of longwall production
in late October 2014 and the resulting increase in our surface facility
services and coal royalties prior to the White Oak Acquisition.
Operating expenses in the 2015 Year decreased slightly remaining
comparable to the 2014 Year. Decreases primarily resulted from a
production scale back at various mines, reduced selling expenses
resulting from lower coal sales prices and a favorable sales mix, in
addition to lower labor expenses. These decreases were offset by
increased operating expenses resulting from the assumption of operations
at the Hamilton Mine No. 1 and a full year of production operations at
our Gibson South mine which began production in April 2014. On a per ton
basis, Segment Adjusted EBITDA Expense per ton in the 2015 Year of
$34.20 declined by 1.7% compared to the 2014 Year primarily as a result
of lower operating expenses discussed above and increased coal volumes
at lower cost per ton mines. (For a definition of Segment Adjusted
EBITDA and Segment Adjusted EBITDA Expense per ton and related
reconciliations to comparable GAAP financial measures, please see the
end of this release).
General and administrative expenses decreased $5.1 million to $67.5
million in the 2015 Year, primarily as a result of lower incentive
compensation expenses. Depreciation, depletion and amortization
increased $59.1 million to $333.7 million in the 2015 Year, compared to
the 2014 Year, due to accelerated depreciation at our Elk Creek mine
reflecting the anticipated mine closing in early 2016, the impact of
increased production volumes at our Gibson South mine and the recently
acquired Hamilton Mine No. 1, as well as the amortization of coal supply
contracts acquired on December 31, 2014.
Results for the 2015 Year were impacted by several items attributable to
ARLP’s investments related to White Oak and accounting for the White Oak
Acquisition. Equity in loss of affiliates increased $32.4 million
primarily due to the pass through of losses related to our equity
ownership in White Oak prior to the White Oak Acquisition, which was
partially offset by a $22.5 million non-cash net gain related to the
final business combination accounting for the acquisition.
The 2015 Year was also impacted by $100.1 million of non-cash impairment
charges comprised of a $66.9 million impairment related to the
previously announced idling of our Onton mine, a $19.5 million
impairment at the MC Mining complex, primarily due to lower coal sales
prices, and $13.7 million of impairments to leases we elected to
surrender rather than incur high holding costs.
Three Months Ended December 31, 2015 Compared to Three Months Ended
December 31, 2014
Revenues for the 2015 Quarter decreased 8.2% to $542.2 million, compared
to the 2014 Quarter, as coal sales revenues fell 6.1% due to lower coal
sales prices and volumes and, as anticipated, a decline in other sales
and operating revenues following the White Oak Acquisition.
Lower operating expenses in the 2015 Quarter reflect the factors
benefiting full year operating expenses discussed above. These factors
along with a full quarter of lower cost production from the Hamilton
Mine No. 1 and lower coal inventory charges also drove Segment Adjusted
EBITDA Expense per ton lower in the 2015 Quarter, to $33.19 per ton
compared to $35.69 per ton in the 2014 Quarter.
As noted above, the 2015 Quarter was also impacted by non-cash items
comprised of the $89.4 million of impairments related to our Onton mine
($66.9 million), the MC Mining mine ($19.5 million) and surrendered
leases ($3.0 million), which charges were partially offset by the $22.5
million non-cash net gain related to final business combination
accounting for the White Oak Acquisition.
General and administrative expenses decreased $3.2 million to $15.1
million, primarily due to lower incentive compensation expenses.
Depreciation, depletion and amortization increased $20.0 million to
$91.0 million in the 2015 Quarter compared to the 2014 Quarter,
primarily due to accelerated depreciation at our Elk Creek mine, the
addition of the Hamilton Mine No. 1 and the amortization of acquired
coal supply contracts.
Regional Results and Analysis
(in millions, except per ton data)
|
|
|
|
2015 Fourth Quarter
|
|
|
2014 Fourth Quarter
|
|
|
% Change Quarter / Quarter
|
|
|
|
2015 Third Quarter
|
|
|
|
% Change Sequential
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Illinois Basin (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tons sold
|
|
|
|
|
7.809
|
|
|
|
7.692
|
|
|
1.5
|
%
|
|
|
|
|
8.134
|
|
|
|
(4.0
|
)%
|
Coal sales price per ton (2)
|
|
|
|
$
|
49.96
|
|
|
$
|
52.93
|
|
|
(5.6
|
)%
|
|
|
|
$
|
50.50
|
|
|
|
(1.1
|
)%
|
Segment Adjusted EBITDA Expense per ton (3)
|
|
|
|
$
|
28.33
|
|
|
$
|
34.30
|
|
|
(17.4
|
)%
|
|
|
|
$
|
30.69
|
|
|
|
(7.7
|
)%
|
Segment Adjusted EBITDA (3)
|
|
|
|
$
|
171.3
|
|
|
$
|
150.9
|
|
|
13.5
|
%
|
|
|
|
$
|
147.5
|
|
|
|
16.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Appalachia
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tons sold
|
|
|
|
|
2.162
|
|
|
|
2.357
|
|
|
(8.3
|
)%
|
|
|
|
|
2.160
|
|
|
|
0.1
|
%
|
Coal sales price per ton (2)
|
|
|
|
$
|
61.08
|
|
|
$
|
64.62
|
|
|
(5.5
|
)%
|
|
|
|
$
|
61.61
|
|
|
|
(0.9
|
)%
|
Segment Adjusted EBITDA Expense per ton (3)
|
|
|
|
$
|
47.97
|
|
|
$
|
37.86
|
|
|
26.7
|
%
|
|
|
|
$
|
37.23
|
|
|
|
28.8
|
%
|
Segment Adjusted EBITDA (3)
|
|
|
|
$
|
29.1
|
|
|
$
|
69.6
|
|
|
(58.2
|
)%
|
|
|
|
$
|
53.4
|
|
|
|
(45.5
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total (4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tons sold
|
|
|
|
|
9.971
|
|
|
|
10.049
|
|
|
(0.8
|
)%
|
|
|
|
|
10.294
|
|
|
|
(3.1
|
)%
|
Coal sales price per ton (2)
|
|
|
|
$
|
52.70
|
|
|
$
|
55.68
|
|
|
(5.4
|
)%
|
|
|
|
$
|
53.18
|
|
|
|
(0.9
|
)%
|
Segment Adjusted EBITDA Expense per ton (3)
|
|
|
|
$
|
33.19
|
|
|
$
|
35.69
|
|
|
(7.0
|
)%
|
|
|
|
$
|
32.65
|
|
|
|
1.7
|
%
|
Segment Adjusted EBITDA (3)
|
|
|
|
$
|
202.0
|
|
|
$
|
220.8
|
|
|
(8.5
|
)%
|
|
|
|
$
|
203.8
|
|
|
|
(0.9
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
In the Sequential Quarter, ARLP realigned its segment presentation.
The Illinois Basin segment now includes the consolidated Hamilton
Mine No. 1 previously owned by White Oak. Prior periods have been
conformed to include our activities with White Oak in the Illinois
Basin segment.
|
(2)
|
|
Sales price per ton is defined as total coal sales divided by total
tons sold.
|
(3)
|
|
For definitions of Segment Adjusted EBITDA Expense per ton and
Segment Adjusted EBITDA and related reconciliations to comparable
GAAP financial measures, please see the end of this release.
|
(4)
|
|
Total reflects consolidated results which include the other and
corporate segment and eliminations in addition to the Illinois Basin
and Appalachia segments highlighted above.
|
|
|
|
Reflecting higher coal sales volumes from our Gibson South mine and the
assumption of operations at the Hamilton Mine No. 1, offset by reduced
sales volumes due to weak market conditions, ARLP’s Illinois Basin
operations sold 7.8 million tons of coal in the 2015 Quarter, an
increase of 1.5% over the 2014 Quarter. Lower sales volumes in the 2015
Quarter at our Elk Creek, River View and Onton mines in response to
current market conditions, partially offset by increased volumes at
Hamilton Mine No. 1, pushed Illinois Basin sales volumes lower by 4.0%
compared to the Sequential Quarter. In Appalachia, coal sales volumes
decreased in the 2015 Quarter compared to the 2014 Quarter due to
reduced sales from our Tunnel Ridge mine reflecting scaled back
production in response to weak coal demand. Due to weak coal demand and
customer delays of scheduled shipments, ARLP’s coal inventory remains
elevated at 2.4 million tons at the end of the 2015 Quarter, compared to
1.4 million tons at the end of the 2014 Quarter.
ARLP's total coal sales price per ton in the 2015 Quarter decreased
compared to both the 2014 and Sequential Quarters reflecting current
market conditions. Reduced coal sales prices in the Illinois Basin also
reflect lower-priced legacy contracts at the Hamilton Mine No. 1 assumed
in the White Oak Acquisition.
Total Segment Adjusted EBITDA Expense per ton in the 2015 Quarter
decreased 7.0% compared to the 2014 Quarter as a result of reduced
expenses per ton in the Illinois Basin offset by increased costs in the
Appalachian region. Primarily due to higher costs in Appalachia, total
Segment Adjusted EBITDA Expense per ton in the 2015 Quarter increased
1.7% compared to the Sequential Quarter. In the Illinois Basin, Segment
Adjusted EBITDA Expense per ton decreased compared to both the 2014 and
Sequential Quarters primarily due to lower labor expenses and coal
inventory charges, as well as increased coal production and recoveries
at our Gibson South mine and a full quarter of lower cost per ton
longwall production at the Hamilton Mine No. 1. In Appalachia, Segment
Adjusted EBITDA Expense per ton increased by 26.7% and 28.8% compared to
the 2014 and Sequential Quarters, respectively, due to reduced
production at the Tunnel Ridge mine as a result of lower demand and the
need to manage coal inventories at the mine.
Outlook
"Conditions in the U.S. thermal coal markets continued to deteriorate
during the 2015 Quarter as mild weather reduced overall power demand,"
said Mr. Craft. "Utilities responded by deferring contracted tons and
adding to their already above normal coal stockpiles. Looking forward,
we believe 2016 coal demand for our Illinois Basin and northern
Appalachia markets will be 6% to 7% below 2015, depending on the
weather. We are uncertain as to whether utilities will satisfy this
demand by reducing inventories or taking advantage of current low spot
prices and purchase coal to match their coal burn."
Mr. Craft continued, "ARLP has elected to address this uncertainty by
shifting production to our lowest-cost mines and reducing unit shifts
and production days to curtail production. We will continue to operate
below our installed capacity until ARLP’s customers provide clarity on
the need for additional tons. The impact of our response to current
market conditions is reflected in ARLP’s 2016 guidance provided below.
Fortunately, despite expectations for lower production and sales volumes
in the near term, ARLP’s low-cost, strategically located operations and
our ongoing cost reduction and efficiency efforts should help us to
navigate these challenging times. Even with this reduced production
level and costs incurred to keep production capacity available in the
event additional demand materializes, based upon our guidance outlined
below, we expect ARLP’s 2016 distributable cash flow to cover its
current unitholder distribution by 1.1 to 1.2 times."
For 2016, ARLP is providing the following full year guidance for its
operating and investment activities:
Capital Expenditures and Investments – Total 2016 capital
expenditures for ARLP’s operating activities are currently estimated in
a range of $134.0 to $142.0 million. Capital expenditures for 2016 are
primarily related to maintenance capital expenditures including
equipment rebuilds and replacements and mine extension and other
infrastructure projects at various operations. Based on utilization of
used equipment acquired from others and re-deployment of equipment from
ARLP’s idled operations to other mines, we are currently estimating
maintenance capital expenditures of approximately $3.98 per ton produced
in 2016. Considering its current five-year planning horizon, ARLP is
estimating total average maintenance capital expenditures of
approximately $4.75 per ton produced for long-term distribution planning
purposes.
In addition to these capital expenditures, ARLP currently anticipates
funding in 2016 investments of approximately $60.0 to $70.0 million
related to its commitment to acquire oil and gas minerals.
Coal Production and Sales Volumes – During 2016, coal production
is currently estimated in a range of 33.7 to 35.7 million tons and sales
volumes are expected in a range of 34.6 to 38.1 million tons. ARLP has
secured price commitments for approximately 34.3 million tons in 2016
and has also secured coal sales and price commitments for approximately
19.1 million tons, 14.5 million tons and 7.1 million tons in 2017, 2018
and 2019, respectively.
Revenue, EBITDA and Net Income Estimates – Driven primarily by
reduced coal sales volumes and prices and lower other revenues, ARLP is
currently expecting 2016 revenues in a range of $1.82 to $1.95 billion,
excluding transportation revenues, EBITDA in a range of $545.0 to $615.0
million and net income in a range of $230.0 to $300.0 million. (For a
definition of EBITDA and related reconciliations to comparable GAAP
financial measures, please see the end of this release.)
Per Ton Estimates – ARLP currently anticipates its average coal
sales price per ton at the midpoint of its 2016 guidance ranges will be
3.5% to 6.0% lower than 2015 realizations, primarily due to the
deterioration in near-term coal markets. In addition, based on current
cost and production estimates, ARLP anticipates total Segment Adjusted
EBITDA Expense per ton at the 2016 midpoint will be comparable to 2015.
Based on these price and cost estimates, and reflecting lower other
revenues following the White Oak Acquisition, total Segment Adjusted
EBITDA per ton sold at the 2016 midpoint is currently expected to be
approximately 11.0% to 12.0% below the prior year.
A conference call regarding ARLP’s 2015 Quarter and Year financial
results and 2016 outlook is scheduled for today at 9:00 a.m. Eastern. To
participate in the conference call, dial (855) 793-3259 and provide
passcode 18774166. International callers should dial (631) 485-4928 and
provide the same passcode number. Investors may also listen to the call
via the "investor information" section of ARLP’s website at http://www.arlp.com.
An audio replay of the conference call will be available for
approximately one week. To access the audio replay, dial (855) 859-2056
and provide passcode number 18774166. International callers should dial
(404) 537-3406 and provide the same passcode number.
This announcement is intended to be a qualified notice under Treasury
Regulation Section 1.1446-4(b), with 100% of the partnership’s
distributions to foreign investors attributable to income that is
effectively connected with a United States trade or business.
Accordingly, ARLP’s distributions to foreign investors are subject to
federal income tax withholding at the highest applicable tax rate.
About Alliance Resource Partners, L.P.
ARLP is a diversified producer and marketer of coal to major United
States utilities and industrial users. ARLP, the nation’s first publicly
traded master limited partnership involved in the production and
marketing of coal, is currently the second largest coal producer in the
eastern United States with mining operations in the Illinois Basin and
Appalachian coal producing regions.
ARLP currently operates ten mining complexes in Illinois, Indiana,
Kentucky, Maryland and West Virginia. ARLP also operates a coal loading
terminal on the Ohio River at Mount Vernon, Indiana.
News, unit prices and additional information about ARLP, including
filings with the Securities and Exchange Commission, are available at http://www.arlp.com.
For more information, contact the investor relations department of
Alliance Resource Partners, L.P. at (918) 295-7674 or via e-mail at investorrelations@arlp.com.
The statements and projections used throughout this release are based on
current expectations. These statements and projections are
forward-looking, and actual results may differ materially. At the end of
this release, we have included more information regarding business risks
that could affect our results.
FORWARD-LOOKING STATEMENTS: With the exception of historical
matters, any matters discussed in this press release are forward-looking
statements that involve risks and uncertainties that could cause actual
results to differ materially from projected results. These risks,
uncertainties and contingencies include, but are not limited to, the
following: changes in competition in coal markets and our ability to
respond to such changes; changes in coal prices, which could affect our
operating results and cash flows; risks associated with the expansion of
our operations and properties; legislation, regulations, and court
decisions and interpretations thereof, including those relating to the
environment, mining, miner health and safety and health care;
deregulation of the electric utility industry or the effects of any
adverse change in the coal industry, electric utility industry, or
general economic conditions; dependence on significant customer
contracts, including renewing customer contracts upon expiration of
existing contracts; changing global economic conditions or in industries
in which our customers operate; liquidity constraints, including those
resulting from any future unavailability of financing; customer
bankruptcies, cancellations or breaches to existing contracts, or other
failures to perform; customer delays, failure to take coal under
contracts or defaults in making payments; adjustments made in price,
volume or terms to existing coal supply agreements; fluctuations in coal
demand, prices and availability; our productivity levels and margins
earned on our coal sales; changes in raw material costs; changes in the
availability of skilled labor; our ability to maintain satisfactory
relations with our employees; increases in labor costs, adverse changes
in work rules, or cash payments or projections associated with post-mine
reclamation and workers′ compensation claims; increases in
transportation costs and risk of transportation delays or interruptions;
operational interruptions due to geologic, permitting, labor,
weather-related or other factors; risks associated with major
mine-related accidents, such as mine fires, or interruptions; results of
litigation, including claims not yet asserted; difficulty maintaining
our surety bonds for mine reclamation as well as workers′ compensation
and black lung benefits; difficulty in making accurate assumptions and
projections regarding pension, black lung benefits and other
post-retirement benefit liabilities; the coal industry’s share of
electricity generation, including as a result of environmental concerns
related to coal mining and combustion and the cost and perceived
benefits of other sources of electricity, such as natural gas, nuclear
energy and renewable fuels; uncertainties in estimating and replacing
our coal reserves; a loss or reduction of benefits from certain tax
deductions and credits; difficulty obtaining commercial property
insurance, and risks associated with our participation (excluding any
applicable deductible) in the commercial insurance property program; and
difficulty in making accurate assumptions and projections regarding
future revenues and costs associated with equity investments in
companies we do not control.
Additional information concerning these and other factors can be
found in ARLP’s public periodic filings with the Securities and Exchange
Commission ("SEC"), including ARLP’s Annual Report on Form 10-K for the
year ended December 31, 2014, filed on February 27, 2015 and ARLP’s
Quarterly Reports on Form 10-Q for the quarters ended March 31, 2015,
June 30, 2015 and September 30, 2015, filed on May 8, 2015, August 6,
2015 and November 6, 2015, respectively, with the SEC. Except as
required by applicable securities laws, ARLP does not intend to update
its forward-looking statements.
|
|
|
|
|
|
|
|
ALLIANCE RESOURCE PARTNERS, L.P. AND SUBSIDIARIES
|
|
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND OPERATING DATA
|
(In thousands, except unit and per unit data)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31,
|
|
|
|
Year Ended December 31,
|
|
|
|
2015
|
|
|
2014
|
|
|
|
2015
|
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tons Sold
|
|
|
|
9,971
|
|
|
|
|
10,049
|
|
|
|
|
|
40,247
|
|
|
|
|
39,731
|
|
Tons Produced
|
|
|
|
9,707
|
|
|
|
|
10,516
|
|
|
|
|
|
41,178
|
|
|
|
|
40,749
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SALES AND OPERATING REVENUES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Coal sales
|
|
|
$
|
525,513
|
|
|
|
$
|
559,518
|
|
|
|
|
$
|
2,158,006
|
|
|
|
$
|
2,208,611
|
|
Transportation revenues
|
|
|
|
9,274
|
|
|
|
|
8,205
|
|
|
|
|
|
33,597
|
|
|
|
|
26,021
|
|
Other sales and operating revenues
|
|
|
|
7,365
|
|
|
|
|
23,070
|
|
|
|
|
|
82,130
|
|
|
|
|
66,089
|
|
Total revenues
|
|
|
|
542,152
|
|
|
|
|
590,793
|
|
|
|
|
|
2,273,733
|
|
|
|
|
2,300,721
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses (excluding depreciation, depletion and
amortization)
|
|
|
|
331,099
|
|
|
|
|
359,055
|
|
|
|
|
|
1,377,053
|
|
|
|
|
1,383,360
|
|
Transportation expenses
|
|
|
|
9,274
|
|
|
|
|
8,205
|
|
|
|
|
|
33,597
|
|
|
|
|
26,021
|
|
Outside coal purchases
|
|
|
|
1
|
|
|
|
|
7
|
|
|
|
|
|
327
|
|
|
|
|
14
|
|
General and administrative
|
|
|
|
15,148
|
|
|
|
|
18,351
|
|
|
|
|
|
67,484
|
|
|
|
|
72,552
|
|
Depreciation, depletion and amortization
|
|
|
|
90,983
|
|
|
|
|
71,027
|
|
|
|
|
|
333,713
|
|
|
|
|
274,566
|
|
Asset impairment charge
|
|
|
|
89,435
|
|
|
|
|
-
|
|
|
|
|
|
100,130
|
|
|
|
|
-
|
|
Total operating expenses
|
|
|
|
535,940
|
|
|
|
|
456,645
|
|
|
|
|
|
1,912,304
|
|
|
|
|
1,756,513
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME FROM OPERATIONS
|
|
|
|
6,212
|
|
|
|
|
134,148
|
|
|
|
|
|
361,429
|
|
|
|
|
544,208
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net
|
|
|
|
(7,527
|
)
|
|
|
|
(8,189
|
)
|
|
|
|
|
(31,153
|
)
|
|
|
|
(33,584
|
)
|
Interest income
|
|
|
|
38
|
|
|
|
|
433
|
|
|
|
|
|
1,459
|
|
|
|
|
1,671
|
|
Equity in income (loss) of affiliates, net
|
|
|
|
3
|
|
|
|
|
(3,102
|
)
|
|
|
|
|
(49,046
|
)
|
|
|
|
(16,648
|
)
|
Acquisition gain, net
|
|
|
|
22,548
|
|
|
|
|
-
|
|
|
|
|
|
22,548
|
|
|
|
|
-
|
|
Other income
|
|
|
|
205
|
|
|
|
|
388
|
|
|
|
|
|
955
|
|
|
|
|
1,566
|
|
INCOME BEFORE INCOME TAXES
|
|
|
|
21,479
|
|
|
|
|
123,678
|
|
|
|
|
|
306,192
|
|
|
|
|
497,213
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME TAX EXPENSE
|
|
|
|
4
|
|
|
|
|
-
|
|
|
|
|
|
21
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME
|
|
|
|
21,475
|
|
|
|
|
123,678
|
|
|
|
|
|
306,171
|
|
|
|
|
497,213
|
|
LESS: NET LOSS ATTRIBUTABLE TO NONCONTROLLING INTEREST
|
|
|
|
-
|
|
|
|
|
16
|
|
|
|
|
|
27
|
|
|
|
|
16
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME ATTRIBUTABLE TO ALLIANCE RESOURCE PARTNERS, L.P. ("NET
INCOME OF ARLP")
|
|
|
$
|
21,475
|
|
|
|
$
|
123,694
|
|
|
|
|
$
|
306,198
|
|
|
|
$
|
497,229
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GENERAL PARTNERS’ INTEREST IN NET INCOME OF ARLP
|
|
|
$
|
34,603
|
|
|
|
$
|
34,809
|
|
|
|
|
$
|
146,338
|
|
|
|
$
|
138,274
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIMITED PARTNERS’ INTEREST IN NET INCOME OF ARLP
|
|
|
$
|
(13,128
|
)
|
|
|
$
|
88,885
|
|
|
|
|
$
|
159,860
|
|
|
|
$
|
358,955
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BASIC AND DILUTED NET INCOME OF ARLP PER LIMITED PARTNER UNIT
|
|
|
$
|
(0.19
|
)
|
|
|
$
|
1.18
|
|
|
|
|
$
|
2.11
|
|
|
|
$
|
4.77
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DISTRIBUTIONS PAID PER LIMITED PARTNER UNIT
|
|
|
$
|
0.675
|
|
|
|
$
|
0.6375
|
|
|
|
|
$
|
2.6625
|
|
|
|
$
|
2.4725
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE NUMBER OF UNITS OUTSTANDING – BASIC AND DILUTED
|
|
|
|
74,188,784
|
|
|
|
|
74,060,634
|
|
|
|
|
|
74,174,389
|
|
|
|
|
74,044,417
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ALLIANCE RESOURCE PARTNERS, L.P. AND SUBSIDIARIES
|
|
|
|
|
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(In thousands, except unit data)
|
(Unaudited)
|
|
|
|
|
ASSETS
|
|
|
December 31,
|
|
|
2015
|
|
|
2014
|
CURRENT ASSETS:
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
33,431
|
|
|
|
$
|
24,601
|
|
Trade receivables
|
|
|
|
122,875
|
|
|
|
|
184,187
|
|
Other receivables
|
|
|
|
696
|
|
|
|
|
1,025
|
|
Due from affiliates
|
|
|
|
190
|
|
|
|
|
7,221
|
|
Inventories
|
|
|
|
121,081
|
|
|
|
|
83,155
|
|
Advance royalties
|
|
|
|
6,820
|
|
|
|
|
9,416
|
|
Prepaid expenses and other assets
|
|
|
|
29,812
|
|
|
|
|
31,283
|
|
Total current assets
|
|
|
|
314,905
|
|
|
|
|
340,888
|
|
|
|
|
|
|
|
|
PROPERTY, PLANT AND EQUIPMENT:
|
|
|
|
|
|
|
Property, plant and equipment, at cost
|
|
|
|
3,044,260
|
|
|
|
|
2,815,620
|
|
Less accumulated depreciation, depletion and amortization
|
|
|
|
(1,243,985
|
)
|
|
|
|
(1,150,414
|
)
|
Total property, plant and equipment, net
|
|
|
|
1,800,275
|
|
|
|
|
1,665,206
|
|
|
|
|
|
|
|
|
OTHER ASSETS:
|
|
|
|
|
|
|
Advance royalties
|
|
|
|
21,295
|
|
|
|
|
15,895
|
|
Due from affiliate
|
|
|
|
-
|
|
|
|
|
11,047
|
|
Equity investments in affiliates
|
|
|
|
64,509
|
|
|
|
|
224,611
|
|
Goodwill
|
|
|
|
136,399
|
|
|
|
|
-
|
|
Other long-term assets
|
|
|
|
25,747
|
|
|
|
|
27,412
|
|
Total other assets
|
|
|
|
247,950
|
|
|
|
|
278,965
|
|
TOTAL ASSETS
|
|
|
$
|
2,363,130
|
|
|
|
$
|
2,285,059
|
|
LIABILITIES AND PARTNERS' CAPITAL
|
|
|
|
|
|
|
CURRENT LIABILITIES:
|
|
|
|
|
|
|
Accounts payable
|
|
|
$
|
83,597
|
|
|
|
$
|
85,843
|
|
Due to affiliates
|
|
|
|
129
|
|
|
|
|
370
|
|
Accrued taxes other than income taxes
|
|
|
|
15,621
|
|
|
|
|
19,426
|
|
Accrued payroll and related expenses
|
|
|
|
37,031
|
|
|
|
|
57,656
|
|
Accrued interest
|
|
|
|
306
|
|
|
|
|
318
|
|
Workers' compensation and pneumoconiosis benefits
|
|
|
|
8,688
|
|
|
|
|
8,868
|
|
Current capital lease obligations
|
|
|
|
19,764
|
|
|
|
|
1,305
|
|
Other current liabilities
|
|
|
|
18,929
|
|
|
|
|
17,109
|
|
Current maturities, long-term debt
|
|
|
|
239,350
|
|
|
|
|
230,000
|
|
Total current liabilities
|
|
|
|
423,415
|
|
|
|
|
420,895
|
|
LONG-TERM LIABILITIES:
|
|
|
|
|
|
|
Long-term debt, excluding current maturities
|
|
|
|
580,000
|
|
|
|
|
591,250
|
|
Pneumoconiosis benefits
|
|
|
|
60,077
|
|
|
|
|
55,278
|
|
Accrued pension benefit
|
|
|
|
39,031
|
|
|
|
|
40,105
|
|
Workers' compensation
|
|
|
|
47,486
|
|
|
|
|
49,797
|
|
Asset retirement obligations
|
|
|
|
122,434
|
|
|
|
|
91,085
|
|
Long-term capital lease obligations
|
|
|
|
80,150
|
|
|
|
|
15,624
|
|
Other liabilities
|
|
|
|
21,174
|
|
|
|
|
5,978
|
|
Total long-term liabilities
|
|
|
|
950,352
|
|
|
|
|
849,117
|
|
Total liabilities
|
|
|
|
1,373,767
|
|
|
|
|
1,270,012
|
|
|
|
|
|
|
|
|
COMMITMENTS AND CONTINGENCIES
|
|
|
|
|
|
|
PARTNERS' CAPITAL:
|
|
|
|
|
|
|
Alliance Resource Partners, L.P. (“ARLP”) Partners’ Capital:
|
|
|
|
|
|
|
Limited Partners - Common Unitholders 74,188,784 and 74,060,634
units outstanding, respectively
|
|
|
|
1,280,218
|
|
|
|
|
1,310,517
|
|
General Partners' deficit
|
|
|
|
(258,883
|
)
|
|
|
|
(260,088
|
)
|
Accumulated other comprehensive loss
|
|
|
|
(34,557
|
)
|
|
|
|
(35,847
|
)
|
Total ARLP Partners' Capital
|
|
|
|
986,778
|
|
|
|
|
1,014,582
|
|
Noncontrolling interest
|
|
|
|
2,585
|
|
|
|
|
465
|
|
Total Partners' Capital
|
|
|
|
989,363
|
|
|
|
|
1,015,047
|
|
TOTAL LIABILITIES AND PARTNERS' CAPITAL
|
|
|
$
|
2,363,130
|
|
|
|
$
|
2,285,059
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ALLIANCE RESOURCE PARTNERS, L.P. AND SUBSIDIARIES
|
|
|
|
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(In thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
Year Ended December 31,
|
|
|
|
2015
|
|
|
2014
|
|
|
|
|
|
|
|
CASH FLOWS PROVIDED BY OPERATING ACTIVITIES
|
|
|
$
|
716,342
|
|
|
|
$
|
739,201
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
|
Property, plant and equipment:
|
|
|
|
|
|
|
Capital expenditures
|
|
|
|
(212,797
|
)
|
|
|
|
(307,387
|
)
|
Changes in accounts payable and accrued liabilities
|
|
|
|
(3,021
|
)
|
|
|
|
(2,270
|
)
|
Proceeds from sale of property, plant and equipment
|
|
|
|
2,062
|
|
|
|
|
381
|
|
Proceeds from insurance settlement for property, plant and equipment
|
|
|
|
-
|
|
|
|
|
4,512
|
|
Purchases of equity investments in affiliates
|
|
|
|
(64,540
|
)
|
|
|
|
(111,376
|
)
|
Payments for acquisitions of businesses, net of cash acquired
|
|
|
|
(74,953
|
)
|
|
|
|
-
|
|
Payments to affiliate for acquisition and development of coal
reserves
|
|
|
|
-
|
|
|
|
|
(4,082
|
)
|
Payment for acquisition of customer contracts
|
|
|
|
-
|
|
|
|
|
(11,687
|
)
|
Advances/loans to affiliate
|
|
|
|
(7,300
|
)
|
|
|
|
-
|
|
Other
|
|
|
|
4,634
|
|
|
|
|
(9,313
|
)
|
Net cash used in investing activities
|
|
|
|
(355,915
|
)
|
|
|
|
(441,222
|
)
|
|
|
|
|
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
|
Borrowings under securitization facility
|
|
|
|
6,500
|
|
|
|
|
100,000
|
|
Payments under securitization facility
|
|
|
|
(23,400
|
)
|
|
|
|
-
|
|
Payments under term loans
|
|
|
|
(108,502
|
)
|
|
|
|
(18,750
|
)
|
Borrowings under revolving credit facilities
|
|
|
|
543,000
|
|
|
|
|
341,800
|
|
Payments under revolving credit facilities
|
|
|
|
(308,000
|
)
|
|
|
|
(451,800
|
)
|
Payment on long-term debt
|
|
|
|
(205,000
|
)
|
|
|
|
(18,000
|
)
|
Proceeds on capital lease transaction
|
|
|
|
100,000
|
|
|
|
|
-
|
|
Payments on capital lease obligations
|
|
|
|
(4,312
|
)
|
|
|
|
(1,494
|
)
|
Payment of debt issuance costs
|
|
|
|
-
|
|
|
|
|
(263
|
)
|
Contributions to consolidated company from affiliate noncontrolling
interest
|
|
|
|
2,147
|
|
|
|
|
481
|
|
Net settlement of employee withholding taxes on vesting of Long-Term
Incentive Plan
|
|
|
|
(2,719
|
)
|
|
|
|
(2,991
|
)
|
Cash contributions by General Partners
|
|
|
|
1,595
|
|
|
|
|
1,611
|
|
Distributions paid to Partners
|
|
|
|
(346,799
|
)
|
|
|
|
(317,626
|
)
|
Other
|
|
|
|
(6,107
|
)
|
|
|
|
-
|
|
Net cash used in financing activities
|
|
|
|
(351,597
|
)
|
|
|
|
(367,032
|
)
|
|
|
|
|
|
|
|
NET CHANGE IN CASH AND CASH EQUIVALENTS
|
|
|
|
8,830
|
|
|
|
|
(69,053
|
)
|
|
|
|
|
|
|
|
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
|
|
|
|
24,601
|
|
|
|
|
93,654
|
|
|
|
|
|
|
|
|
CASH AND CASH EQUIVALENTS AT END OF PERIOD
|
|
|
$
|
33,431
|
|
|
|
$
|
24,601
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP "net income" to non-GAAP
"Adjusted net income" (in thousands).
Adjusted net income is defined as net income (prior to the allocation of
noncontrolling interest) modified for certain items that may not reflect
the trend of future results, such as non-cash impairments and gains and
losses on acquisition related accounting.
Adjusted net income should not be considered as an alternative to net
income or any other measure of financial performance presented in
accordance with GAAP. Adjusted net income excludes certain items that
management believes affect the comparability of our operating results.
This adjusted financial measure is used by our management and external
users of our financial statements, such as investors, commercial banks,
research analysts and others, to assess:
-
our operational trends and performance relative to other coal
companies;
-
the comparability of our performance to earnings estimates provided by
security analysts; and
-
our performance excluding items which are generally nonrecurring in
nature or whose timing or amount cannot be reasonably estimated.
We believe Adjusted net income is a useful measure for investors because
it further demonstrates our financial performance without regard to
items that may not reflect the trend of future results.
|
|
|
Three Months Ended December 31,
|
|
|
|
Year Ended December 31,
|
|
|
|
Three Months Ended September 30,
|
|
|
|
2015
|
|
|
2014
|
|
|
|
2015
|
|
|
2014
|
|
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
$
|
21,475
|
|
|
|
$
|
123,678
|
|
|
|
$
|
306,171
|
|
|
|
$
|
497,213
|
|
|
|
$
|
83,372
|
Asset impairment charge
|
|
|
|
89,435
|
|
|
|
|
-
|
|
|
|
|
100,130
|
|
|
|
|
-
|
|
|
|
|
10,695
|
Acquisition gain, net
|
|
|
|
(22,548
|
)
|
|
|
|
-
|
|
|
|
|
(22,548
|
)
|
|
|
|
-
|
|
|
|
|
-
|
Adjusted net income
|
|
|
$
|
88,362
|
|
|
|
$
|
123,678
|
|
|
|
$
|
383,753
|
|
|
|
$
|
497,213
|
|
|
|
$
|
94,067
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP "net income" to non-GAAP
"EBITDA", "Adjusted EBITDA" and "Distributable Cash Flow" (in thousands).
EBITDA is defined as net income (prior to the allocation of
noncontrolling interest) before net interest expense, income taxes and
depreciation, depletion and amortization and Adjusted EBITDA is EBITDA
modified for certain items that may not reflect the trend of future
results, such as non-cash impairments and gains and losses on
acquisition related accounting. EBITDA is used as a supplemental
financial measure by our management and by external users of our
financial statements such as investors, commercial banks, research
analysts and others, to assess:
-
the financial performance of our assets without regard to financing
methods, capital structure or historical cost basis;
-
the ability of our assets to generate cash sufficient to pay interest
costs and support our indebtedness;
-
our operating performance and return on investment as compared to
those of other companies in the coal energy sector, without regard to
financing or capital structures; and
-
the viability of acquisitions and capital expenditure projects and the
overall rates of return on alternative investment opportunities.
We believe Adjusted EBITDA is a useful measure for investors because it
further demonstrates the performance of our assets without regard to
items that may not reflect the trend of future results.
Distributable cash flow ("DCF") is defined as Adjusted EBITDA excluding
equity in income or loss of affiliates, interest expense (before
capitalized interest), interest income, income taxes and estimated
maintenance capital expenditures. Distribution coverage ratio ("DCR") is
defined as DCF divided by distributions paid to partners. DCF and DCR
are used as supplemental financial measures by our management and by
external users of our financial statements, such as investors,
commercial banks, research analysts and others, to assess:
-
the cash flows generated by our assets (prior to the establishment of
any retained cash reserves by the general partner) to fund the cash
distributions we expect to pay to unitholders;
-
our success in providing a cash return on investment and whether or
not the Partnership is generating cash flow at a level that can
sustain or support an increase in its quarterly distribution rates;
-
the yield of our units, which is a quantitative standard used
throughout the investment community with respect to publicly-traded
partnerships as the value of a unit is generally determined by a
unit’s yield (which in turn is based on the amount of cash
distributions the entity pays to a unitholder).
EBITDA, Adjusted EBITDA, DCF and DCR should not be considered as
alternatives to net income, income from operations, cash flows from
operating activities or any other measure of financial performance
presented in accordance with generally accepted accounting principles.
EBITDA, Adjusted EBITDA and DCF are not intended to represent cash flow
and do not represent the measure of cash available for distribution. Our
method of computing EBITDA, Adjusted EBITDA, DCF and DCR may not be the
same method used to compute similar measures reported by other
companies, or EBITDA, Adjusted EBITDA, DCF and DCR may be computed
differently by us in different contexts (i.e. public reporting versus
computation under financing agreements).
|
|
|
Three Months Ended December 31,
|
|
|
|
Year Ended December 31,
|
|
|
|
Three Months Ended September 30,
|
|
|
|
Year Ended December 31,
|
|
|
|
2015
|
|
|
2014
|
|
|
|
2015
|
|
|
2014
|
|
|
|
2015
|
|
|
|
2016E Midpoint
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
$
|
21,475
|
|
|
|
$
|
123,678
|
|
|
|
|
$
|
306,171
|
|
|
|
$
|
497,213
|
|
|
|
|
$
|
83,372
|
|
|
|
|
$
|
265,500
|
|
Depreciation, depletion and amortization
|
|
|
|
90,983
|
|
|
|
|
71,027
|
|
|
|
|
|
333,713
|
|
|
|
|
274,566
|
|
|
|
|
|
84,661
|
|
|
|
|
|
281,000
|
|
Interest expense, gross
|
|
|
|
7,666
|
|
|
|
|
7,756
|
|
|
|
|
|
30,389
|
|
|
|
|
32,746
|
|
|
|
|
|
7,219
|
|
|
|
|
|
33,500
|
|
Capitalized interest
|
|
|
|
(177
|
)
|
|
|
|
-
|
|
|
|
|
|
(695
|
)
|
|
|
|
(833
|
)
|
|
|
|
|
(152
|
)
|
|
|
|
|
-
|
|
Income tax expense
|
|
|
|
4
|
|
|
|
|
-
|
|
|
|
|
|
21
|
|
|
|
|
-
|
|
|
|
|
|
12
|
|
|
|
|
|
-
|
|
EBITDA
|
|
|
|
119,951
|
|
|
|
|
202,461
|
|
|
|
|
|
669,599
|
|
|
|
|
803,692
|
|
|
|
|
|
175,112
|
|
|
|
|
|
580,000
|
|
Asset impairment charge
|
|
|
|
89,435
|
|
|
|
|
-
|
|
|
|
|
|
100,130
|
|
|
|
|
-
|
|
|
|
|
|
10,695
|
|
|
|
|
|
-
|
|
Acquisition gain, net
|
|
|
|
(22,548
|
)
|
|
|
|
-
|
|
|
|
|
|
(22,548
|
)
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
Adjusted EBITDA
|
|
|
|
186,838
|
|
|
|
|
202,461
|
|
|
|
|
|
747,181
|
|
|
|
|
803,692
|
|
|
|
|
|
185,807
|
|
|
|
|
|
580,000
|
|
Equity in (income) loss of affiliates, net
|
|
|
|
(3
|
)
|
|
|
|
3,102
|
|
|
|
|
|
49,046
|
|
|
|
|
16,648
|
|
|
|
|
|
17,221
|
|
|
|
|
|
2,200
|
|
Interest expense, gross
|
|
|
|
(7,666
|
)
|
|
|
|
(7,756
|
)
|
|
|
|
|
(30,389
|
)
|
|
|
|
(32,746
|
)
|
|
|
|
|
(7,219
|
)
|
|
|
|
|
(33,500
|
)
|
Income tax expense
|
|
|
|
(4
|
)
|
|
|
|
-
|
|
|
|
|
|
(21
|
)
|
|
|
|
-
|
|
|
|
|
|
(12
|
)
|
|
|
|
|
-
|
|
Estimated maintenance capital expenditures (1)
|
|
|
|
(48,147
|
)
|
|
|
|
(62,044
|
)
|
|
|
|
|
(204,243
|
)
|
|
|
|
(240,419
|
)
|
|
|
|
|
(56,792
|
)
|
|
|
|
|
(164,700
|
)
|
Distributable Cash Flow
|
|
|
$
|
131,018
|
|
|
|
$
|
135,763
|
|
|
|
|
$
|
561,574
|
|
|
|
$
|
547,175
|
|
|
|
|
$
|
139,005
|
|
|
|
|
$
|
384,000
|
|
Distributions paid to partners (2)
|
|
|
$
|
88,102
|
|
|
|
$
|
82,282
|
|
|
|
|
$
|
346,799
|
|
|
|
$
|
317,626
|
|
|
|
|
$
|
88,100
|
|
|
|
|
$
|
350,500
|
|
Distribution Coverage Ratio
|
|
|
|
1.49
|
|
|
|
|
1.65
|
|
|
|
|
|
1.62
|
|
|
|
|
1.72
|
|
|
|
|
|
1.58
|
|
|
|
|
|
1.10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Our maintenance capital expenditures, as defined under the terms of
our partnership agreement, are those capital expenditures required to
maintain, over the long-term, the operating capacity of our capital
assets. We estimate maintenance capital expenditures on an annual basis
based upon a five-year planning horizon. For the 2015 planning horizon,
average annual estimated maintenance capital expenditures were assumed
to be $4.96 per produced ton compared to the estimated $5.90 per
produced ton in 2014. For the 2016 planning horizon, average annual
estimated maintenance capital expenditures are assumed to be $4.75 per
ton produced compared to the estimated $4.96 per ton produced in 2015.
Reflecting the anticipated utilization of used equipment acquired from
third parties and redeployment of used equipment from our idled
operations to other ARLP mines, we are currently estimating actual
maintenance capital expenditures in 2016 of $3.98 per ton produced. Our
actual maintenance capital expenditures vary depending on various
factors, including maintenance schedules and timing of capital projects,
among others. We annually disclose our actual maintenance capital
expenditures in our Form 10-K filed with the Securities and Exchange
Commission.
(2) At the midpoint of current 2016 guidance ranges, estimated
distributions paid to partners reflects the current quarterly unitholder
distribution of $0.675 per unit ($2.70 per unit annualized) and the
estimated weighted-average number of limited partner units outstanding
in 2016.
Reconciliation of GAAP "Operating Expenses" to
non-GAAP "Segment Adjusted EBITDA Expense per ton" and Reconciliation of
non-GAAP "Adjusted EBITDA" to "Segment Adjusted EBITDA per ton" (in
thousands, except per ton data).
Segment Adjusted EBITDA Expense per ton includes operating expenses,
outside coal purchases and other income divided by tons sold.
Transportation expenses are excluded as these expenses are passed
through to our customers and, consequently, we do not realize any margin
on transportation revenues. Segment Adjusted EBITDA Expense is used as a
supplemental financial measure by our management to assess the operating
performance of our segments. Segment Adjusted EBITDA Expense is a key
component of Adjusted EBITDA in addition to coal sales and other sales
and operating revenues. The exclusion of corporate general and
administrative expenses from Segment Adjusted EBITDA Expense allows
management to focus solely on the evaluation of segment operating
performance as it primarily relates to our operating expenses. Outside
coal purchases are included in Segment Adjusted EBITDA Expense because
tons sold and coal sales include sales from outside coal purchases.
|
|
|
Three Months Ended December 31,
|
|
|
|
Year Ended December 31,
|
|
|
|
Three Months Ended September 30,
|
|
|
2015
|
|
|
2014
|
|
|
|
2015
|
|
|
2014
|
|
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expense
|
|
|
$
|
331,099
|
|
|
|
$
|
359,055
|
|
|
|
|
$
|
1,377,053
|
|
|
|
$
|
1,383,360
|
|
|
|
|
$
|
336,527
|
|
Outside coal purchases
|
|
|
|
1
|
|
|
|
|
7
|
|
|
|
|
|
327
|
|
|
|
|
14
|
|
|
|
|
|
2
|
|
Other (income) loss
|
|
|
|
(205
|
)
|
|
|
|
(388
|
)
|
|
|
|
|
(955
|
)
|
|
|
|
(1,566
|
)
|
|
|
|
|
(455
|
)
|
Segment Adjusted EBITDA Expense
|
|
|
$
|
330,895
|
|
|
|
$
|
358,674
|
|
|
|
|
$
|
1,376,425
|
|
|
|
$
|
1,381,808
|
|
|
|
|
$
|
336,074
|
|
Divided by tons sold
|
|
|
|
9,971
|
|
|
|
|
10,049
|
|
|
|
|
|
40,247
|
|
|
|
|
39,731
|
|
|
|
|
|
10,294
|
|
Segment Adjusted EBITDA Expense per ton
|
|
|
$
|
33.19
|
|
|
|
$
|
35.69
|
|
|
|
|
$
|
34.20
|
|
|
|
$
|
34.78
|
|
|
|
|
$
|
32.65
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Adjusted EBITDA per ton is defined as net income (prior to the
allocation of noncontrolling interest) before net interest expense,
income taxes, depreciation, depletion and amortization, general and
administrative expenses, asset impairment charge and acquisition gain,
net divided by tons sold. Segment Adjusted EBITDA removes the impact of
general and administrative expenses from Adjusted EBITDA (discussed
above) to allow management to focus solely on the evaluation of segment
operating performance.
|
|
|
Three Months Ended December 31,
|
|
|
|
Year Ended December 31,
|
|
|
|
Three Months Ended September 30,
|
|
|
2015
|
|
|
2014
|
|
|
|
2015
|
|
|
2014
|
|
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA (See reconciliation to GAAP above)
|
|
|
$
|
186,838
|
|
|
$
|
202,461
|
|
|
|
$
|
747,181
|
|
|
$
|
803,692
|
|
|
|
$
|
185,807
|
General and administrative
|
|
|
|
15,148
|
|
|
|
18,351
|
|
|
|
|
67,484
|
|
|
|
72,552
|
|
|
|
|
17,948
|
Segment Adjusted EBITDA
|
|
|
$
|
201,986
|
|
|
$
|
220,812
|
|
|
|
$
|
814,665
|
|
|
$
|
876,244
|
|
|
|
$
|
203,755
|
Divided by tons sold
|
|
|
|
9,971
|
|
|
|
10,049
|
|
|
|
|
40,247
|
|
|
|
39,731
|
|
|
|
|
10,294
|
Segment Adjusted EBITDA per ton
|
|
|
$
|
20.26
|
|
|
$
|
21.97
|
|
|
|
$
|
20.24
|
|
|
$
|
22.05
|
|
|
|
$
|
19.79
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20160126005452/en/ Copyright Business Wire 2016
Source: Business Wire
(January 26, 2016 - 7:00 AM EST)
News by QuoteMedia
www.quotemedia.com
|