Cloud Peak Energy Inc. Announces Results for the Third Quarter and the First Nine Months of 2015
Cloud Peak Energy Inc. (NYSE:CLD), one of the largest U.S. coal
producers and the only pure-play Powder River Basin (“PRB”) coal
company, today announced results for the third quarter and the first
nine months of 2015.
Highlights and Recent Developments
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Quarter Ended
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Year to Date
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(in millions, except per ton amounts)
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9/30/15
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9/30/14
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9/30/15
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9/30/14
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Adjusted EBITDA(1)
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$
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39.0
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$
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45.7
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$
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89.1
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$
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130.3
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Net income (loss)
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$
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8.9
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$
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91.1
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$
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(48.7)
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$
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73.3
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Realized price per ton sold
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$
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12.62
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$
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13.12
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$
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12.81
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$
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13.07
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Average cost per ton sold
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$
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9.15
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$
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10.44
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$
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9.90
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$
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10.52
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Shipments - owned and operated mines (tons)
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20.8
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21.5
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56.4
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62.6
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Asian exports (tons)
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0.9
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1.2
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3.3
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3.2
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(1) Non-GAAP financial measure; please see definition and
reconciliation below in this release and the attached tables.
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Third quarter 2015 Adjusted EBITDA was $39.0 million compared to $45.7
million for the third quarter of 2014.
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Shipments for the third quarter of 2015 were 20.8 million tons, down
from 21.5 million tons for the same period in 2014.
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Cost per ton was $9.15 in the third quarter of 2015, decreasing from
$10.44 in the third quarter of 2014.
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Cash margin in the third quarter was $3.47 per ton compared to $2.68
per ton in the third quarter of 2014.
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Obtained access to approximately 95 million tons of coal at the
Cordero Rojo Mine. This additional tonnage is expected to enhance the
flexibility for future development of the mine and adds approximately
four years of production to the mine at current rates.
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Entered into a flexible ownership agreement with SSA Marine and the
Crow Tribe, supporting the development of the Gateway Pacific Terminal
in Washington State.
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Cordero Rojo Mine was awarded the nation’s most prestigious
reclamation award for the Belle Fourche River project.
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Available liquidity increased to $668.7 million, including cash and
cash equivalents of $123.5 million, at September 30, 2015.
Colin Marshall, President and Chief Executive Officer, commented, “We
were able to deliver a strong quarter both operationally and financially
as customers took their contracted coal after a very slow second
quarter. Unfortunately, international prices continue to be negatively
impacted by a decline in Chinese thermal coal imports and the strong
U.S. dollar. Cloud Peak Energy is actively managing its exposure through
these tough conditions.”
Health, Safety, and Environment
During the third quarter of 2015, of our approximately 1,350 full-time
mine site employees, three suffered reportable injuries resulting in a
year-to-date Mine Safety and Health Administration (“MSHA”) All Injury
Frequency Rate (“AIFR”) of 1.11. During 74 MSHA inspector days at our
mine sites in the third quarter, we were issued three significant and
substantial citations. Only one of those citations has been assessed to
date with a fine of $540.
Earlier this month, our Cordero Rojo Mine received the federal
government’s highest reclamation award for work reclaiming the Belle
Fourche River. Cloud Peak Energy has a strong record of using innovative
approaches to successfully reclaim the land after mining is complete.
The federal government has recognized our mines with its highest honor
in four of the last six years. “The work done at the Cordero Rojo Mine
is exceptional, and this award highlights the strong commitment of
everyone at Cordero Rojo and Cloud Peak Energy to returning land to a
condition as good if not better than before mining began,” said Marshall.
Consolidated Business Results
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Quarter Ended
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Year to Date
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(in millions, except per share amounts)
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9/30/15
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9/30/14
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9/30/15
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9/30/14
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Total tons sold
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20.8
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22.0
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56.6
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63.7
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Total revenue
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$
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301.7
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$
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342.3
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$
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863.4
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$
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982.3
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Net income (loss)
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$
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8.9
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$
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91.1
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$
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(48.7)
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$
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73.3
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Adjusted EBITDA(1)
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$
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39.0
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$
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45.7
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$
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89.1
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$
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130.3
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Adjusted EPS (1)
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$
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0.24
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$
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0.04
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$
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(0.08)
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$
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(0.06)
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Diluted EPS
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$
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0.14
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$
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1.49
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$
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(0.80)
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$
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1.20
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(1) Non-GAAP financial measure; please see definition and
reconciliation below in this release and the attached tables.
Operating Segments
Owned and Operated Mines
Our Owned and Operated Mines segment comprises the results of mine site
sales from our three owned and operated mines primarily to our domestic
utility customers and also to our Logistics and Related Activities
segment.
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Quarter Ended
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Year to Date
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(in millions, except per ton amounts)
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9/30/15
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9/30/14
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9/30/15
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9/30/14
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Tons sold
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20.8
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21.5
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56.4
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62.6
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Revenue
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$
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265.7
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$
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286.0
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$
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733.7
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$
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827.7
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Realized price per ton sold
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$
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12.62
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$
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13.12
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$
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12.81
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$
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13.07
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Average cost of product sold per ton
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$
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9.15
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$
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10.44
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$
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9.90
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$
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10.52
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Cash margin per ton sold
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$
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3.47
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$
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2.68
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$
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2.91
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$
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2.55
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Adjusted EBITDA(1)
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$
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57.8
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$
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43.6
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$
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119.2
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$
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126.7
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(1) Non-GAAP financial measure; please see definition and
reconciliation below in this release and the attached tables.
During the third quarter of 2015, domestic coal shipments were the
strongest of the year due to steady rail performance and customers
taking their contracted volumes. Overall, power demand for the first
nine months is slightly higher compared to 2014 but competition from low
priced natural gas and increased renewable generation capacity continues
to reduce coal consumption, which has allowed customers to rebuild
inventories this year.
Revenue from our Owned and Operated Mines segment decreased in the third
quarter of 2015 compared to the third quarter of 2014 due to fewer
shipments and lower average realized prices per ton sold. Cost per ton
was $9.15 for the third quarter of 2015. The combination of steady
shipments, lower diesel prices, and good overall cost control allowed us
to reduce unit costs.
The asset retirement obligation for the Cordero Rojo Mine was reduced by
$35.2 million due to an optimization of the reclamation plan and
additional mining life resulting from the recent surface rights
agreement, which is expected to add approximately four years of
production to the mine. The decrease in the asset retirement obligation
exceeded the carrying value of the related asset retirement cost of
$18.4 million and the resulting non-cash credit reduced Depreciation and
depletion expense in the quarter by $16.8 million.
Logistics and Related Activities
Our Logistics and Related Activities segment comprises the results of
our logistics and transportation services to our domestic and
international customers.
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Quarter Ended
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Year to Date
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(in millions)
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9/30/15
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9/30/14
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9/30/15
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9/30/14
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Total tons delivered
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1.4
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1.6
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4.5
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4.0
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Asian exports
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0.9
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1.2
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3.3
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3.2
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Revenue
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$
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44.8
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$
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65.6
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$
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162.8
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$
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178.8
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Total cost of product sold
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$
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65.2
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$
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70.8
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$
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205.0
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$
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188.4
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Realized gain on financial instruments
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$
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2.8
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$
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8.0
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$
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10.2
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$
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18.9
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Adjusted EBITDA(1)
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$
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(19.0)
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$
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1.4
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$
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(33.8)
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$
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4.5
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(1) Non-GAAP financial measure; please see definition and
reconciliation below in this release and the attached tables.
Our Asian export deliveries through Westshore Terminal were 0.9 million
tons in the third quarter of 2015, which reflects the planned reduction
in shipments announced earlier in the year in consideration of the
currently low seaborne thermal coal prices. Our forward sales hedging
program mitigated some of the impact of lower spot prices with a
realized gain of $2.8 million in the third quarter of 2015, and we
further benefitted from lower fuel surcharges in the rail freight
component of costs in the period.
Balance Sheet and Cash Flow
Cash flow from operations totaled $47.2 million for the third quarter of
2015 as compared to $6.7 million for the third quarter of 2014. For the
first nine months of 2015, cash flow from operations totaled $62.1
million. Capital expenditures (excluding capitalized interest) for the
first nine months of 2015 were $28.1 million, which includes $15.9
million for the dragline move from the Cordero Rojo Mine to the Antelope
Mine, which is progressing as planned.
Cash and cash equivalents as of September 30, 2015 were $123.5 million
and our total available liquidity increased during the period to $668.7
million. At September 30, 2015, there were no borrowings outstanding
under our revolving credit facility or our accounts receivable
securitization program.
Domestic Outlook
Shipments for the quarter improved significantly and are expected to
continue this trend for the remainder of the year. Our mines continue to
be well positioned with the equipment, manpower, and inventory to meet
anticipated 2015 demand.
Increasing natural gas production and mixed regional and seasonal summer
weather have continued downward pressure on natural gas prices and led
to an increase in coal and natural gas inventories. Low oil and natural
gas prices have led to a significant slowdown in drilling in many U.S.
oil and natural gas fields. However, due to a large inventory of drilled
wells and increased productivity, natural gas production continues to
increase, keeping natural gas prices depressed, which in turn puts
pressure on coal prices.
In the near term, weather-related demand and natural gas prices are the
largest factors impacting coal demand. At the same time, the ongoing
regulatory burden on coal-fired electricity generation and the subsidies
for renewable energy continue to decrease overall coal demand and are
likely to lead to increased electricity prices for consumers. Currently,
U.S. thermal demand for the nine months ended September 30, 2015 from
electric generators is estimated to be down 67 million tons from 654
million tons compared to the same period in 2014. Shipments from the PRB
are down only six million tons from 313 million tons over the same
period, which demonstrates the PRB’s competitiveness even in this
challenging market environment.
For 2015, we have currently committed to sell 78 million tons from our
three mines. This volume is nearly all committed under fixed-price
contracts with a weighted-average price of $12.73 per ton. For 2016, we
have currently committed to sell 67 million tons from our three mines.
Of this committed production, 57 million tons are under fixed-price
contracts with a weighted-average price of $12.95 per ton. The
approximate 6 million tons we sold for 2016 during the quarter was at an
average price of $11.17 per ton in line with the prevailing market. For
2017, we have currently committed to sell 40 million tons from our three
mines. Of this committed production, 29 million tons are under
fixed-price contracts with a weighted-average price of $13.14 per ton.
International Outlook
The international thermal coal market is very weak due to significantly
reduced Chinese coal imports throughout 2015 and a strong U.S. dollar,
which have depressed prices significantly even as demand from other
Asian countries continues to grow.
Chinese thermal coal imports this year are expected to be down over 60
million tonnes from 2014. This is the main driver for current weak
international prices. It remains unclear whether near term Chinese
thermal import demand will stabilize at current levels.
While the strong U.S. dollar has improved the economics for coal
producers in Australia and Indonesia, we do not believe new production
capacity will be built at current price levels. Given the large number
of Asian plants currently being built to take imported coal and the
growth in Indian imports, we still believe current oversupply will be
overcome by growing demand over time. We continue to see interest in
demand for PRB coal and our logistics services from our Asian customers
and continue to have successful test burns in our target markets.
Exports through the Westshore Terminal for 2015 are currently forecast
to be approximately 4.0 million tons. We are currently contracted to
ship approximately 4.3 million tons at Westshore in 2015, which reflects
our previously announced reduction of 2015 export shipments by
approximately one million tons and an additional amendment with
Westshore to further reduce our contracted shipments in the second half
of 2015 by approximately 900,000 tons. In addition, we are currently in
discussions with our rail and port partners and expect to reduce our
contracted export volumes in 2016 and beyond if weak pricing for
seaborne thermal coal persists.
“While the external environment continues to be challenging, we will
maintain our focus to produce coal in a safe and efficient manner. Our
cost control efforts have been effective, and we intend to match our
production to market demand. We continue to be optimistic that domestic
and international prices will improve. While we are not sure when prices
will recover, we believe our low-cost operations will enable us to
manage through these difficult times,” commented Marshall.
2015 Updated Guidance – Financial and Operational Estimates
The following table provides our current outlook and assumptions for
selected 2015 consolidated financial and operational metrics:
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Estimate or Estimated Range
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Coal shipments for our three mines(1)
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75 – 77 million tons
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Committed sales with fixed prices
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Approximately 78 million tons
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Anticipated realized price of produced coal with fixed prices
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Approximately $12.73 per ton
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Adjusted EBITDA(2)
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$115 – $135 million
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Net interest expense
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Approximately $45 million
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Depreciation, depletion, amortization, and accretion
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Approximately $95 million
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Capital expenditures(3)
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$40 – $50 million
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Committed federal coal lease payments
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$69 million - PAID
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(1) Inclusive of intersegment sales. (2)
Non-GAAP financial measure; please see definition below in this release. (3)
Excluding federal coal lease payments.
Conference Call Details
A conference call with management is scheduled at 5:00 p.m. ET on
October 27, 2015 to review the results and current business conditions.
The call will be webcast live over the Internet from our website at www.cloudpeakenergy.com
under “Investor Relations”. Participants should follow the instructions
provided on the website for downloading and installing the audio
applications necessary to join the webcast. Interested individuals also
can access the live conference call via telephone at (855) 793-3260
(domestic) or (631) 485-4929 (international) and entering pass code
50778508.
Following the live webcast, a replay will be available at the same URL
on our website for seven days. A telephonic replay will also be
available approximately two hours after the call and can be accessed by
dialing (855) 859-2056 (domestic) or (404) 537-3406 (international) and
entering pass code 50778508. The telephonic replay will be available for
seven days.
About Cloud Peak Energy®
Cloud Peak Energy Inc. (NYSE:CLD) is headquartered in Wyoming and is one
of the largest U.S. coal producers and the only pure-play Powder River
Basin coal company. As one of the safest coal producers in the nation,
Cloud Peak Energy mines low sulfur, subbituminous coal and provides
logistics supply services. The Company owns and operates three surface
coal mines in the PRB, the lowest cost major coal producing region in
the nation. The Antelope and Cordero Rojo mines are located in Wyoming
and the Spring Creek Mine is located in Montana. In 2014, Cloud Peak
Energy shipped approximately 86 million tons from its three mines to
customers located throughout the U.S. and around the world. Cloud Peak
Energy also owns rights to substantial undeveloped coal and
complimentary surface assets in the Northern PRB, further building the
Company’s long-term position to serve Asian export and domestic
customers. With approximately 1,600 total employees, the Company is
widely recognized for its exemplary performance in its safety and
environmental programs. Cloud Peak Energy is a sustainable fuel supplier
for approximately four percent of the nation’s electricity.
Cautionary Note Regarding Forward-Looking Statements
This release and our related presentation contain “forward-looking
statements” within the meaning of the safe harbor provisions of Section
27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. Forward-looking statements are not statements of
historical facts and often contain words such as “may,” “will,”
“expect,” “believe,” “anticipate,” “plan,” “estimate,” “seek,” “could,”
“should,” “intend,” “potential,” or words of similar meaning.
Forward-looking statements are based on management’s current
expectations, beliefs, assumptions and estimates regarding our Company,
industry, economic conditions, government regulations, energy policies
and other factors. Forward-looking statements may include, for example:
(1) our outlook for 2015 and future periods for our Company, the PRB and
the industry in general, and our operational, financial and export
guidance, including the timing and extent of any recovery for depressed
coal industry conditions, domestically and internationally, and the
impact of ongoing depressed conditions on our financial performance and
liquidity; (2) expected development of future export terminal capacity,
increased future access to existing or new capacity and our ability to
manage our take-or-pay exposure for currently committed port and rail
capacity to address depressed prices; (3) anticipated demand by domestic
and Asian utilities for PRB coal, including the impact of regulatory
developments and uncertainties and climate change concerns; (4) the
impact of competition from other domestic and international coal
producers, natural gas supplies and other alternative sources of energy
used to generate electricity; (5) coal stockpile and natural gas storage
levels and the impacts on future demand and pricing; (6) our plans to
replenish and/or increase our coal tons and extend our mine lives; (7)
business development and growth initiatives; (8) operational plans for
our mines; (9) our cost management efforts; (10) industry estimates of
the U.S. Energy Information Administration and other third party
sources; (11) our estimates of the quality and quantity of economic coal
associated with our development projects, the potential development of
our Youngs Creek and other Northern PRB assets, and our potential
exercise of options for Crow Tribal coal; (12) our future liquidity and
access to sources of capital and credit to support our existing
operations and growth opportunities; (13) rail performance; (14)
anticipated benefits of recent depressed oil prices; (15) the impact of
our hedging programs; and (16) other statements regarding our plans,
strategies, prospects and expectations concerning our business,
operating results, financial condition and other matters that do not
relate strictly to historical facts. These statements are subject to
significant risks, uncertainties, and assumptions that are difficult to
predict and could cause actual results to differ materially and
adversely from those expressed or implied in the forward-looking
statements. Factors that could adversely affect our future results
include, for example, (a) future economic and weather conditions that
impact electricity demand, demand for thermal coal, available coal
supplies and transportation logistics infrastructure; (b) existing and
future coal-fired power plant capacity and utilization, demand for our
coal by the domestic electric generation industry, Asian export demand,
terminal capacity, payments pursuant to take-or-pay obligations and the
prices we receive for our coal and our logistics services; (c)
reductions or deferrals of purchases by major customers and our ability
to renew sales contracts on favorable terms; (d) competition from other
coal producers, natural gas producers and other sources of energy,
domestically and internationally, including the effects of governmental
energy and tax policies, regulations and currency exchange rates which
may favor international coal suppliers and other sources of energy; (e)
environmental, health, safety, endangered species or other legislation,
regulations, executive orders, treaties, court decisions or government
actions, or related third-party legal challenges or changes in
interpretations, including third-party challenges against regulatory
approvals needed for our mining activities and other well-funded
anti-coal initiatives and new requirements or uncertainties affecting
the use, demand or price for coal or imposing additional costs,
liabilities or restrictions on our mining operations, the utility
industry or the logistics, transportation and terminal industries; (f)
public perceptions, third-party legal challenges or governmental
regulations, executive orders or other actions and energy policies
relating to concerns about climate change, air and water quality or
other environmental considerations, including emissions restrictions
(for example, EPA carbon regulations for power plants under the Clean
Air Act) and governmental subsidies or mandates that make natural gas,
wind, solar or other alternative fuel sources more cost-effective and
competitive with coal; (g) operational, geological, equipment, permit,
labor, weather-related and other risks inherent in surface coal mining;
(h) our ability to efficiently and safely conduct our mining operations;
(i) transportation and export terminal availability, performance and
costs; (j) availability, timing of delivery and costs of key supplies,
capital equipment or commodities such as diesel fuel, steel, explosives
and tires; (k) our ability to acquire future coal tons through the
federal LBA process and necessary surface rights and permits in a timely
and cost-effective manner and the impact of third-party legal
challenges; (l) liquidity constraints, access to capital and credit
markets and availability and costs of credit, surety bonds, letters of
credit, and insurance, including the impact of increasing credit
pressures on the coal industry due to depressed conditions; (m)
litigation and other contingent liabilities; (n) proposed Pacific
Northwest export terminals are not developed in a timely manner or at
all, or are developed at a smaller capacity than planned, or we are
unable to enter into definitive throughput agreements for potential
future capacity at proposed terminals, including the Gateway Pacific
Terminal and Millennium Bulk Terminal; (o) future development and
operating costs for our development projects significantly exceed our
expectations; (p) the failure of carbon capture technology to be
developed and adopted by utilities; (q) volatility and recent decline in
the price of our common stock, including the impact of any de-listing of
our stock from the New York Stock Exchange if we fail to meet the
minimum average closing price listing standard; and (r) other risk
factors described from time to time in the reports and registration
statements we file with the Securities and Exchange Commission,
including those in Item 1A - Risk Factors in our most recent Form 10-K
and any updates thereto in our Forms 10-Q and Forms 8-K. There may be
other risks and uncertainties that are not currently known to us or that
we currently believe are not material. We make forward-looking
statements based on currently available information, and we assume no
obligation to, and expressly disclaim any obligation to, update or
revise publicly any forward-looking statements made in this release or
our related presentation, whether as a result of new information, future
events or otherwise, except as required by law.
Non-GAAP Financial Measures
This release and our related presentation include the non-GAAP financial
measures of (1) Adjusted EBITDA (on a consolidated basis and for our
reporting segments) and (2) Adjusted Earnings Per Share (“Adjusted
EPS”). Adjusted EBITDA and Adjusted EPS are intended to provide
additional information only and do not have any standard meaning
prescribed by generally accepted accounting principles in the U.S.
(“GAAP”). A quantitative reconciliation of historical net income (loss)
to Adjusted EBITDA and EPS (as defined below) to Adjusted EPS is found
in the tables accompanying this release.
EBITDA represents net income (loss) before: (1) interest income
(expense) net, (2) income tax provision, (3) depreciation and depletion,
and (4) amortization. Adjusted EBITDA represents EBITDA as further
adjusted for accretion, which represents non-cash increases in asset
retirement obligation liabilities resulting from the passage of time,
and specifically identified items that management believes do not
directly reflect our core operations. For the periods presented herein,
the specifically identified items are: (1) adjustments to exclude the
updates to the tax agreement liability, including tax impacts of the
2009 IPO and 2010 Secondary Offering and the termination of the Tax
Receivable Agreement in August 2014, (2) adjustments for derivative
financial instruments, excluding fair value mark-to-market gains or
losses and including cash amounts received or paid, (3) adjustments to
exclude non-cash goodwill impairment charges, and (4) adjustments to
exclude the gain from the sale of our 50% non-operating interest in the
Decker Mine. We enter into certain derivative financial instruments such
as put options that require the payment of premiums at contract
inception. The reduction in the premium value over time is reflected in
the mark-to-market gains or losses. Our calculation of Adjusted EBITDA
does not include premiums paid for derivative financial instruments;
either at contract inception, as these payments pertain to future
settlement periods, or in the period of contract settlement, as the
payment occurred in a preceding period. Because of the inherent
uncertainty related to the items identified above, management does not
believe it is able to provide a meaningful forecast of the comparable
GAAP measures or reconciliation to any forecasted GAAP measures.
Adjusted EPS represents diluted earnings (loss) per common share (“EPS”)
adjusted to exclude (i) the estimated per share impact of the same
specifically identified non-core items used to calculate Adjusted EBITDA
as described above, and (ii) the cash and non-cash interest expense
associated with the early retirement of debt and refinancing
transactions. All items are adjusted at the statutory tax rate of
approximately 37%.
Adjusted EBITDA is an additional tool intended to assist our management
in comparing our performance on a consistent basis for purposes of
business decision making by removing the impact of certain items that
management believes do not directly reflect our core operations.
Adjusted EBITDA is a metric intended to assist management in evaluating
operating performance, comparing performance across periods, planning
and forecasting future business operations and helping determine levels
of operating and capital investments. Period-to-period comparisons of
Adjusted EBITDA are intended to help our management identify and assess
additional trends potentially impacting our Company that may not be
shown solely by period-to-period comparisons of net income (loss). Our
chief operating decision maker uses Adjusted EBITDA as a measure of
segment performance. Consolidated Adjusted EBITDA is also used as part
of our incentive compensation program for our executive officers and
others.
We believe Adjusted EBITDA and Adjusted EPS are also useful to
investors, analysts and other external users of our consolidated
financial statements in evaluating our operating performance from period
to period and comparing our performance to similar operating results of
other relevant companies. Adjusted EBITDA allows investors to measure a
company’s operating performance without regard to items such as interest
expense, taxes, depreciation and depletion, amortization and accretion
and other specifically identified items that are not considered to
directly reflect our core operations. Similarly, we believe our use of
Adjusted EPS provides an appropriate measure to use in assessing our
performance across periods given that this measure provides an
adjustment for certain specifically identified significant items that
are not considered to directly reflect our core operations, the
magnitude of which may vary significantly from period to period and,
thereby, have a disproportionate effect on the earnings per share
reported for a given period.
Our management recognizes that using Adjusted EBITDA and Adjusted EPS as
performance measures has inherent limitations as compared to net income
(loss), EPS, or other GAAP financial measures, as these non-GAAP
measures exclude certain items, including items that are recurring in
nature, which may be meaningful to investors. Adjusted EBITDA and
Adjusted EPS should not be considered in isolation and do not purport to
be alternatives to net income (loss), EPS or other GAAP financial
measures as a measure of our operating performance. Because not all
companies use identical calculations, our presentations of Adjusted
EBITDA and Adjusted EPS may not be comparable to other similarly titled
measures of other companies. Moreover, our presentation of Adjusted
EBITDA is different than EBITDA as defined in our debt financing
agreements.
|
|
|
|
|
|
|
|
|
CLOUD PEAK ENERGY INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS AND COMPREHENSIVE INCOME
(in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Nine Months Ended
|
|
|
|
|
|
September 30,
|
|
|
September 30,
|
|
|
|
|
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
Revenue
|
|
|
$
|
301,673
|
|
|
|
$
|
342,337
|
|
|
|
$
|
863,374
|
|
|
|
$
|
982,253
|
|
Costs and expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of product sold (exclusive of depreciation, depletion,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
amortization, and accretion, shown separately)
|
|
|
|
248,500
|
|
|
|
|
288,345
|
|
|
|
|
735,258
|
|
|
|
|
830,405
|
|
|
Depreciation and depletion
|
|
|
|
7,896
|
|
|
|
|
25,815
|
|
|
|
|
51,742
|
|
|
|
|
81,944
|
|
|
Amortization of port access contract rights
|
|
|
|
928
|
|
|
|
|
―
|
|
|
|
2,783
|
|
|
|
|
―
|
|
Accretion
|
|
|
|
3,070
|
|
|
|
|
3,848
|
|
|
|
|
9,960
|
|
|
|
|
12,066
|
|
|
Derivative financial instruments
|
|
|
|
10,235
|
|
|
|
|
(515
|
)
|
|
|
|
17,781
|
|
|
|
|
(16,052
|
)
|
|
Selling, general and administrative expenses
|
|
|
|
12,940
|
|
|
|
|
12,163
|
|
|
|
|
36,701
|
|
|
|
|
37,086
|
|
|
Goodwill impairment
|
|
|
|
―
|
|
|
|
―
|
|
|
|
33,355
|
|
|
|
|
―
|
|
Other operating costs
|
|
|
|
646
|
|
|
|
|
1,099
|
|
|
|
|
1,163
|
|
|
|
|
1,671
|
|
Total costs and expenses
|
|
|
|
284,215
|
|
|
|
|
330,755
|
|
|
|
|
888,743
|
|
|
|
|
947,120
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on sale of Decker Mine interest
|
|
|
|
―
|
|
|
|
(74,262
|
)
|
|
|
|
―
|
|
|
|
(74,262
|
)
|
Operating income (loss)
|
|
|
|
17,458
|
|
|
|
|
85,844
|
|
|
|
|
(25,369
|
)
|
|
|
|
109,395
|
|
Other income (expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
|
|
37
|
|
|
|
|
37
|
|
|
|
|
137
|
|
|
|
|
222
|
|
|
Interest expense
|
|
|
|
(10,985
|
)
|
|
|
|
(12,701
|
)
|
|
|
|
(36,274
|
)
|
|
|
|
(64,508
|
)
|
|
Tax agreement benefit
|
|
|
|
―
|
|
|
|
58,595
|
|
|
|
|
―
|
|
|
|
58,595
|
|
|
Other, net
|
|
|
|
253
|
|
|
|
|
(31
|
)
|
|
|
|
158
|
|
|
|
|
(262
|
)
|
Total other income (expense)
|
|
|
|
(10,695
|
)
|
|
|
|
45,900
|
|
|
|
|
(35,979
|
)
|
|
|
|
(5,953
|
)
|
Income (loss) before income tax provision
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
and earnings from unconsolidated affiliates
|
|
|
|
6,763
|
|
|
|
|
131,744
|
|
|
|
|
(61,348
|
)
|
|
|
|
103,442
|
|
|
Income tax benefit (expense)
|
|
|
|
2,205
|
|
|
|
|
(40,688
|
)
|
|
|
|
12,350
|
|
|
|
|
(30,709
|
)
|
|
Income (loss) from unconsolidated affiliates, net of tax
|
|
|
|
(95
|
)
|
|
|
|
13
|
|
|
|
|
294
|
|
|
|
|
562
|
|
Net income (loss)
|
|
|
|
8,873
|
|
|
|
|
91,069
|
|
|
|
|
(48,704
|
)
|
|
|
|
73,295
|
|
Other comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Postretirement medical plan amortization of prior service costs
|
|
|
|
313
|
|
|
|
|
247
|
|
|
|
|
939
|
|
|
|
|
741
|
|
|
Write-off of prior service costs related to Decker Mine pension
|
|
|
|
―
|
|
|
|
3,183
|
|
|
|
|
―
|
|
|
|
3,183
|
|
|
Income tax on postretirement medical plan
|
|
|
|
(116
|
)
|
|
|
|
(1,235
|
)
|
|
|
|
(347
|
)
|
|
|
|
(1,413
|
)
|
Other comprehensive income (loss)
|
|
|
|
197
|
|
|
|
|
2,195
|
|
|
|
|
592
|
|
|
|
|
2,511
|
|
Total comprehensive income (loss)
|
|
|
$
|
9,070
|
|
|
|
$
|
93,264
|
|
|
|
$
|
(48,112
|
)
|
|
|
$
|
75,806
|
|
Income (loss) per common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$
|
0.15
|
|
|
|
$
|
1.50
|
|
|
|
$
|
(0.80
|
)
|
|
|
$
|
1.21
|
|
Diluted
|
|
|
$
|
0.14
|
|
|
|
$
|
1.49
|
|
|
|
$
|
(0.80
|
)
|
|
|
$
|
1.20
|
|
Weighted-average shares outstanding - basic
|
|
|
|
61,074
|
|
|
|
|
60,850
|
|
|
|
|
61,013
|
|
|
|
|
60,803
|
|
Weighted-average shares outstanding - diluted
|
|
|
|
61,351
|
|
|
|
|
61,133
|
|
|
|
|
61,013
|
|
|
|
|
61,197
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CLOUD PEAK ENERGY INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
|
|
|
December 31,
|
ASSETS
|
|
|
2015
|
|
|
2014
|
Current assets
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
123,519
|
|
|
|
$
|
168,745
|
|
|
Accounts receivable
|
|
|
|
62,029
|
|
|
|
|
86,838
|
|
|
Due from related parties
|
|
|
|
4,152
|
|
|
|
|
227
|
|
|
Inventories, net
|
|
|
|
75,503
|
|
|
|
|
79,802
|
|
|
Deferred income taxes
|
|
|
|
21,670
|
|
|
|
|
21,670
|
|
|
Derivative financial instruments
|
|
|
|
7,258
|
|
|
|
|
17,111
|
|
|
Prepaid taxes
|
|
|
|
9,388
|
|
|
|
|
3
|
|
|
Other assets
|
|
|
|
16,668
|
|
|
|
|
9,837
|
|
|
|
Total current assets
|
|
|
|
320,187
|
|
|
|
|
384,233
|
|
|
|
|
|
|
|
|
|
|
|
|
Noncurrent assets
|
|
|
|
|
|
|
|
|
|
Property, plant and equipment, net
|
|
|
|
1,514,762
|
|
|
|
|
1,589,138
|
|
|
Port access contract rights, net
|
|
|
|
50,997
|
|
|
|
|
53,780
|
|
|
Goodwill
|
|
|
|
2,280
|
|
|
|
|
35,634
|
|
|
Deferred income taxes
|
|
|
|
65,918
|
|
|
|
|
56,468
|
|
|
Other assets
|
|
|
|
44,540
|
|
|
|
|
31,900
|
|
|
|
Total assets
|
|
|
$
|
1,998,684
|
|
|
|
$
|
2,151,153
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
|
$
|
54,189
|
|
|
|
$
|
52,035
|
|
|
Royalties and production taxes
|
|
|
|
126,139
|
|
|
|
|
126,212
|
|
|
Accrued expenses
|
|
|
|
45,989
|
|
|
|
|
52,213
|
|
|
Current portion of federal coal lease obligations
|
|
|
|
—
|
|
|
|
|
63,970
|
|
|
Other liabilities
|
|
|
|
1,803
|
|
|
|
|
1,632
|
|
|
|
Total current liabilities
|
|
|
|
228,120
|
|
|
|
|
296,062
|
|
|
|
|
|
|
|
|
|
|
|
|
Noncurrent liabilities
|
|
|
|
|
|
|
|
|
|
Senior notes
|
|
|
|
490,792
|
|
|
|
|
489,715
|
|
|
Asset retirement obligations, net of current portion
|
|
|
|
167,790
|
|
|
|
|
216,241
|
|
|
Accumulated postretirement medical benefit obligation, net of
current portion
|
|
|
|
55,401
|
|
|
|
|
50,276
|
|
|
Other liabilities
|
|
|
|
12,370
|
|
|
|
|
11,025
|
|
|
|
Total liabilities
|
|
|
|
954,473
|
|
|
|
|
1,063,319
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
|
|
|
Common stock ($0.01 par value; 200,000 shares authorized; 61,647
|
|
|
|
|
|
|
|
|
|
|
and 61,454 shares issued and 61,172 and 61,022 outstanding at
September 30, 2015
|
|
|
|
|
|
|
|
|
|
|
and December 31, 2014, respectively)
|
|
|
|
612
|
|
|
|
|
610
|
|
|
Treasury stock, at cost (475 shares and 432 shares at September 30,
2015 and
|
|
|
|
|
|
|
|
|
|
|
December 31, 2014, respectively)
|
|
|
|
(6,493
|
)
|
|
|
|
(6,243
|
)
|
|
Additional paid-in capital
|
|
|
|
572,758
|
|
|
|
|
568,022
|
|
|
Retained earnings
|
|
|
|
488,041
|
|
|
|
|
536,744
|
|
|
Accumulated other comprehensive income (loss)
|
|
|
|
(10,707
|
)
|
|
|
|
(11,299
|
)
|
|
|
Total equity
|
|
|
|
1,044,211
|
|
|
|
|
1,087,834
|
|
|
|
Total liabilities and equity
|
|
|
$
|
1,998,684
|
|
|
|
$
|
2,151,153
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CLOUD PEAK ENERGY INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
|
|
|
|
|
|
September 30,
|
|
|
|
|
|
|
2015
|
|
|
2014
|
Cash flows from operating activities
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
$
|
(48,704
|
)
|
|
|
$
|
73,295
|
|
|
Adjustments to reconcile net income (loss) to net cash provided by
operating activities:
|
|
|
|
|
|
|
|
|
|
|
Depreciation and depletion
|
|
|
|
51,742
|
|
|
|
|
81,944
|
|
|
|
Amortization of port access contract rights
|
|
|
|
2,783
|
|
|
|
|
—
|
|
|
|
Accretion
|
|
|
|
9,960
|
|
|
|
|
12,066
|
|
|
|
Goodwill impairment
|
|
|
|
33,355
|
|
|
|
|
—
|
|
|
|
Loss (income) from unconsolidated affiliates, net of tax
|
|
|
|
(294
|
)
|
|
|
|
(562
|
)
|
|
|
Distributions of income from unconsolidated affiliates
|
|
|
|
—
|
|
|
|
|
1,250
|
|
|
|
Deferred income taxes
|
|
|
|
(10,115
|
)
|
|
|
|
30,715
|
|
|
|
Gain on sale of Decker Mine interest
|
|
|
|
—
|
|
|
|
|
(74,262
|
)
|
|
|
Tax agreement benefit
|
|
|
|
—
|
|
|
|
|
(58,595
|
)
|
|
|
Equity-based compensation expense
|
|
|
|
4,819
|
|
|
|
|
5,819
|
|
|
|
Derivative mark-to-market (gains) losses
|
|
|
|
17,781
|
|
|
|
|
(16,052
|
)
|
|
|
Cash received (paid) on derivative financial instrument settlements
|
|
|
|
(1,618
|
)
|
|
|
|
16,905
|
|
|
|
Premium payments on derivative financial instruments
|
|
|
|
(5,813
|
)
|
|
|
|
—
|
|
|
|
Non-cash interest expense related to early retirement of debt and
refinancings
|
|
|
|
—
|
|
|
|
|
7,338
|
|
|
|
Net periodic postretirement benefit costs
|
|
|
|
6,072
|
|
|
|
|
5,247
|
|
|
|
Other
|
|
|
|
1,953
|
|
|
|
|
4,021
|
|
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
|
25,614
|
|
|
|
|
(6,459
|
)
|
|
|
|
Inventories, net
|
|
|
|
4,300
|
|
|
|
|
(3,927
|
)
|
|
|
|
Due to or from related parties
|
|
|
|
(3,925
|
)
|
|
|
|
137
|
|
|
|
|
Other assets
|
|
|
|
(10,875
|
)
|
|
|
|
4,173
|
|
|
|
|
Accounts payable and accrued expenses
|
|
|
|
(14,191
|
)
|
|
|
|
4,850
|
|
|
|
|
Tax agreement liability
|
|
|
|
—
|
|
|
|
|
(45,000
|
)
|
|
|
|
Asset retirement obligations
|
|
|
|
(780
|
)
|
|
|
|
(788
|
)
|
Net cash provided by (used in) operating activities
|
|
|
|
62,064
|
|
|
|
|
42,115
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investing activities
|
|
|
|
|
|
|
|
|
|
Purchases of property, plant and equipment
|
|
|
|
(28,125
|
)
|
|
|
|
(14,680
|
)
|
|
Cash paid for capitalized interest
|
|
|
|
(404
|
)
|
|
|
|
(4,066
|
)
|
|
Investments in marketable securities
|
|
|
|
—
|
|
|
|
|
(8,159
|
)
|
|
Maturity and redemption of investments
|
|
|
|
—
|
|
|
|
|
88,845
|
|
|
Investment in port access contract rights
|
|
|
|
—
|
|
|
|
|
(37,100
|
)
|
|
Investment in development projects
|
|
|
|
(1,526
|
)
|
|
|
|
(3,522
|
)
|
|
Investment in unconsolidated affiliates
|
|
|
|
(5,383
|
)
|
|
|
|
—
|
|
|
Payment of restricted cash
|
|
|
|
(6,500
|
)
|
|
|
|
—
|
|
|
Other
|
|
|
|
185
|
|
|
|
|
(1,830
|
)
|
Net cash provided by (used in) investing activities
|
|
|
|
(41,753
|
)
|
|
|
|
19,488
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financing activities
|
|
|
|
|
|
|
|
|
|
Principal payments on federal coal leases
|
|
|
|
(63,970
|
)
|
|
|
|
(58,958
|
)
|
|
Issuance of senior notes
|
|
|
|
—
|
|
|
|
|
200,000
|
|
|
Repayment of senior notes
|
|
|
|
—
|
|
|
|
|
(300,000
|
)
|
|
Payment of deferred financing costs
|
|
|
|
(342
|
)
|
|
|
|
(14,683
|
)
|
|
Other
|
|
|
|
(1,225
|
)
|
|
|
|
(305
|
)
|
Net cash provided by (used in) financing activities
|
|
|
|
(65,537
|
)
|
|
|
|
(173,946
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in cash and cash equivalents
|
|
|
|
(45,226
|
)
|
|
|
|
(112,343
|
)
|
Cash and cash equivalents at beginning of period
|
|
|
|
168,745
|
|
|
|
|
231,633
|
|
Cash and cash equivalents at end of period
|
|
|
$
|
123,519
|
|
|
|
$
|
119,290
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental cash flow disclosures:
|
|
|
|
|
|
|
|
|
|
Interest paid
|
|
|
$
|
32,827
|
|
|
|
$
|
37,017
|
|
|
Income taxes paid (refunded)
|
|
|
$
|
10,123
|
|
|
|
$
|
(5,798
|
)
|
Supplemental non-cash investing and financing activities:
|
|
|
|
|
|
|
|
|
|
Capital expenditures included in accounts payable
|
|
|
$
|
6,401
|
|
|
|
$
|
1,816
|
|
|
Assets acquired under capital leases
|
|
|
$
|
—
|
|
|
|
$
|
1,209
|
|
|
Port access contract rights acquired in sale of Decker Mine interest
|
|
|
$
|
—
|
|
|
|
$
|
5,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CLOUD PEAK ENERGY INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP MEASURES
(in millions, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
September 30,
|
|
|
|
|
|
|
2015
|
|
|
|
2014
|
|
Net income (loss)
|
|
|
|
|
$
|
8.9
|
|
|
|
|
$
|
91.1
|
|
Interest expense
|
|
|
|
|
|
11.0
|
|
|
|
|
|
12.7
|
|
Income tax (benefit) expense
|
|
|
|
|
|
(2.2
|
)
|
|
|
|
|
40.7
|
|
Depreciation and depletion
|
|
|
|
|
|
7.9
|
|
|
|
|
|
25.8
|
|
Amortization
|
|
|
|
|
|
0.9
|
|
|
|
|
|
—
|
|
EBITDA
|
|
|
|
|
|
26.4
|
|
|
|
|
|
170.2
|
|
Accretion
|
|
|
|
|
|
3.1
|
|
|
|
|
|
3.8
|
|
Tax agreement expense (benefit) (1)
|
|
|
|
|
|
—
|
|
|
|
|
|
(58.6
|
)
|
Derivative financial instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Exclusion of fair value mark-to-market losses (gains)(2)
|
|
|
$
|
10.2
|
|
|
|
|
$
|
(0.5
|
)
|
|
|
|
Inclusion of cash amounts received (paid)(3)(4)
|
|
|
|
(0.7
|
)
|
|
|
|
|
5.0
|
|
|
|
Total derivative financial instruments
|
|
|
|
|
|
9.5
|
|
|
|
|
|
4.5
|
|
Gain on sale of Decker Mine interest
|
|
|
|
|
|
—
|
|
|
|
|
|
(74.3
|
)
|
Goodwill impairment
|
|
|
|
|
|
—
|
|
|
|
|
|
—
|
|
Adjusted EBITDA
|
|
|
|
|
$
|
39.0
|
|
|
|
|
$
|
45.7
|
|
_____________________________
|
(1)
|
|
Changes to related deferred taxes are included in income tax expense.
|
(2)
|
|
Derivative fair value mark-to-market (gains) losses reflected on the
statement of operations.
|
(3)
|
|
Cash amounts received and paid reflected within operating cash flows.
|
(4)
|
|
Excludes $1.0 of premiums paid in prior periods for contracts
settled during the three months ended September 30, 2015.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
|
|
|
|
|
|
September 30,
|
|
|
|
|
|
|
2015
|
|
|
|
2014
|
|
Net income (loss)
|
|
|
|
|
$
|
(48.7
|
)
|
|
|
|
$
|
73.3
|
|
Interest income
|
|
|
|
|
|
(0.1
|
)
|
|
|
|
|
(0.2
|
)
|
Interest expense
|
|
|
|
|
|
36.3
|
|
|
|
|
|
64.5
|
|
Income tax (benefit) expense
|
|
|
|
|
|
(12.4
|
)
|
|
|
|
|
30.7
|
|
Depreciation and depletion
|
|
|
|
|
|
51.7
|
|
|
|
|
|
81.9
|
|
Amortization
|
|
|
|
|
|
2.8
|
|
|
|
|
|
—
|
|
EBITDA
|
|
|
|
|
|
29.6
|
|
|
|
|
|
250.2
|
|
Accretion
|
|
|
|
|
|
10.0
|
|
|
|
|
|
12.1
|
|
Tax agreement benefit(1)
|
|
|
|
|
|
—
|
|
|
|
|
|
(58.6
|
)
|
Derivative financial instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Exclusion of fair value mark-to-market losses (gains)(2)
|
|
|
$
|
17.8
|
|
|
|
|
$
|
(16.1
|
)
|
|
|
|
Inclusion of cash amounts received (paid)(3)(4)(5)
|
|
|
|
(1.6
|
)
|
|
|
|
|
16.9
|
|
|
|
Total derivative financial instruments
|
|
|
|
|
|
16.2
|
|
|
|
|
|
0.8
|
|
Gain on sale of Decker Mine interest
|
|
|
|
|
|
—
|
|
|
|
|
|
(74.3
|
)
|
Goodwill impairment
|
|
|
|
|
|
33.4
|
|
|
|
|
|
—
|
|
Adjusted EBITDA
|
|
|
|
|
$
|
89.1
|
|
|
|
|
$
|
130.3
|
|
__________________________
|
(1)
|
|
Changes to related deferred taxes are included in income tax expense.
|
(2)
|
|
Derivative fair value mark-to-market (gains) losses reflected on the
statement of operations.
|
(3)
|
|
Cash amounts received and paid reflected within operating cash flows.
|
(4)
|
|
Excludes premiums of $4.0 paid in prior periods for contracts
settled during the nine months ended September 30, 2015
|
(5)
|
|
Excludes premiums of $5.8 paid at contract inception during the nine
months ended September 30, 2015.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EPS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
|
September 30,
|
|
|
|
|
|
|
2015
|
|
2014
|
|
Diluted earnings (loss) per common share
|
|
|
|
|
|
|
$
|
0.14
|
|
|
|
$
|
1.49
|
|
Tax agreement benefit including tax impacts of IPO
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
and Secondary Offering
|
|
|
|
|
|
|
|
—
|
|
|
|
|
(0.73
|
)
|
Derivative financial instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exclusion of fair value mark-to-market losses (gains)
|
|
|
|
$
|
0.11
|
|
|
|
|
|
$
|
(0.01
|
)
|
|
|
|
Inclusion of cash amounts received (paid) (1)
|
|
|
|
|
(0.01
|
)
|
|
|
|
|
|
0.05
|
|
|
|
Total derivative financial instruments
|
|
|
|
|
|
|
|
0.10
|
|
|
|
|
0.05
|
|
Refinancing transaction:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exclusion of cash interest for early retirement of debt
|
|
|
|
|
—
|
|
|
|
|
|
|
—
|
|
|
|
|
Exclusion of non-cash interest for deferred finance fee write-off
|
|
|
|
|
—
|
|
|
|
|
|
|
—
|
|
|
|
Total refinancing transaction
|
|
|
|
|
|
|
|
—
|
|
|
|
|
—
|
|
Gain on sale of Decker Mine interest
|
|
|
|
|
|
|
|
—
|
|
|
|
|
(0.77
|
)
|
Goodwill impairment
|
|
|
|
|
|
|
|
—
|
|
|
|
|
—
|
|
Adjusted EPS
|
|
|
|
|
|
|
$
|
0.24
|
|
|
|
$
|
0.04
|
|
Weighted-average dilutive shares outstanding (in millions)
|
|
|
|
|
|
|
|
61.4
|
|
|
|
|
61.1
|
|
______________________
|
(1)
|
|
Excludes per share impact of $0.01 for premiums paid in prior
periods for contracts settled during the three months ended September
30, 2015.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EPS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
|
|
|
|
|
|
September 30,
|
|
|
|
|
|
2015
|
|
|
2014
|
|
Diluted earnings per common share
|
|
|
|
|
|
$
|
(0.80
|
)
|
|
|
|
$
|
1.20
|
|
Tax agreement benefit including tax impacts of IPO
|
|
|
|
|
|
|
|
|
|
|
|
|
|
and Secondary Offering
|
|
|
|
|
|
|
—
|
|
|
|
|
|
(0.73
|
)
|
Derivative financial instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exclusion of fair value mark-to-market losses (gains)
|
|
|
$
|
0.18
|
|
|
|
|
|
$
|
(0.17
|
)
|
|
|
|
Inclusion of cash amounts received (paid) (1)(2)
|
|
|
|
(0.02
|
)
|
|
|
|
|
|
0.17
|
|
|
|
Total derivative financial instruments
|
|
|
|
|
|
|
0.17
|
|
|
|
|
|
0.01
|
|
Refinancing transaction:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exclusion of cash interest for early retirement of debt
|
|
|
|
—
|
|
|
|
|
|
|
0.15
|
|
|
|
|
Exclusion of non-cash interest for deferred finance fee write-off
|
|
|
|
—
|
|
|
|
|
|
|
0.08
|
|
|
|
Total refinancing transaction
|
|
|
|
|
|
|
—
|
|
|
|
|
|
0.23
|
|
Gain on sale of Decker Mine Interest
|
|
|
|
|
|
|
—
|
|
|
|
|
|
(0.76
|
)
|
Goodwill impairment
|
|
|
|
|
|
|
0.55
|
|
|
|
|
|
—
|
|
Adjusted EPS
|
|
|
|
|
|
$
|
(0.08
|
)
|
|
|
|
$
|
(0.06
|
)
|
Weighted-average dilutive shares outstanding (in millions)
|
|
|
|
|
|
|
61.0
|
|
|
|
|
|
61.2
|
|
______________________
|
(1)
|
|
Excludes per share impact of $0.04 for premiums paid in prior
periods for contracts settled during the nine months ended September
30, 2015.
|
(2)
|
|
Excludes per share impact of $0.06 for premiums paid at contract
inception during the nine months ended September 30, 2015.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA by Segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
September 30,
|
Owned and Operated Mines
|
|
|
2015
|
|
|
2014
|
|
Adjusted EBITDA
|
|
|
|
|
|
$
|
57.8
|
|
|
|
|
$
|
43.6
|
|
Depreciation and depletion
|
|
|
|
|
|
|
(7.4
|
)
|
|
|
|
|
(26.0
|
)
|
Accretion
|
|
|
|
|
|
|
(2.9
|
)
|
|
|
|
|
(2.9
|
)
|
Derivative financial instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exclusion of fair value mark-to-market gains (losses)
|
|
|
$
|
(10.9
|
)
|
|
|
|
|
$
|
(3.5
|
)
|
|
|
|
Inclusion of cash amounts (received) paid (1)
|
|
|
|
3.5
|
|
|
|
|
|
|
2.9
|
|
|
|
Total derivative financial instruments
|
|
|
|
|
|
|
(7.4
|
)
|
|
|
|
|
(0.6
|
)
|
Other
|
|
|
|
|
|
|
(0.3
|
)
|
|
|
|
|
0.1
|
|
|
|
Operating income (loss)
|
|
|
|
|
|
|
39.8
|
|
|
|
|
|
14.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Logistics and Related Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
|
|
|
|
|
|
|
(19.0
|
)
|
|
|
|
|
1.4
|
|
Amortization
|
|
|
|
|
|
|
(0.9
|
)
|
|
|
|
|
—
|
|
Derivative financial instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exclusion of fair value mark-to-market gains (losses)
|
|
|
|
0.7
|
|
|
|
|
|
|
4.0
|
|
|
|
|
Inclusion of cash amounts (received) paid (2)
|
|
|
|
(2.8
|
)
|
|
|
|
|
|
(8.0
|
)
|
|
|
Total derivative financial instruments
|
|
|
|
|
|
|
(2.1
|
)
|
|
|
|
|
(4.0
|
)
|
|
|
Operating income (loss)
|
|
|
|
|
|
|
(22.0
|
)
|
|
|
|
|
(2.6
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate and Other
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
|
|
|
|
|
|
|
0.5
|
|
|
|
|
|
1.0
|
|
Depreciation and depletion
|
|
|
|
|
|
|
(0.5
|
)
|
|
|
|
|
0.2
|
|
Accretion
|
|
|
|
|
|
|
(0.1
|
)
|
|
|
|
|
(0.9
|
)
|
Gain on sale of Decker Mine interest
|
|
|
|
|
|
|
—
|
|
|
|
|
|
74.3
|
|
Other
|
|
|
|
|
|
|
—
|
|
|
|
|
|
(0.1
|
)
|
|
|
Operating income (loss)
|
|
|
|
|
|
|
(0.1
|
)
|
|
|
|
|
74.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Eliminations
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
|
|
|
|
|
|
|
(0.2
|
)
|
|
|
|
|
(0.3
|
)
|
|
|
Operating loss
|
|
|
|
|
|
|
(0.2
|
)
|
|
|
|
|
(0.3
|
)
|
Consolidated operating income (loss)
|
|
|
|
|
|
|
17.5
|
|
|
|
|
|
85.8
|
|
Interest expense
|
|
|
|
|
|
|
(11.0
|
)
|
|
|
|
|
(12.7
|
)
|
Tax agreement benefit
|
|
|
|
|
|
|
—
|
|
|
|
|
|
58.6
|
|
Other, net
|
|
|
|
|
|
|
0.3
|
|
|
|
|
|
—
|
|
Income tax (expense) benefit
|
|
|
|
|
|
|
2.2
|
|
|
|
|
|
(40.7
|
)
|
Income (loss) from unconsolidated affiliates, net of tax
|
|
|
|
|
|
|
(0.1
|
)
|
|
|
|
|
—
|
|
Net income (loss)
|
|
|
|
|
|
$
|
8.9
|
|
|
|
|
$
|
91.1
|
|
______________________
|
(1)
|
|
Excludes $1.0 of premiums paid in prior periods for contracts
settled during the three months ended September 30, 2015.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA by Segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
|
|
|
|
|
|
September 30,
|
Owned and Operated Mines
|
|
|
2015
|
|
|
2014
|
|
Adjusted EBITDA
|
|
|
$
|
|
|
119.2
|
|
|
|
|
$
|
126.7
|
|
Depreciation and depletion
|
|
|
|
|
|
(49.9
|
)
|
|
|
|
|
(80.8
|
)
|
Accretion
|
|
|
|
|
|
(9.5
|
)
|
|
|
|
|
(8.8
|
)
|
Derivative financial instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Exclusion of fair value mark-to-market gains (losses)
|
|
|
$
|
(13.0
|
)
|
|
|
|
$
|
(2.0
|
)
|
|
|
|
Inclusion of cash amounts (received) paid (1)
|
|
|
|
11.8
|
|
|
|
|
|
2.0
|
|
|
|
Total derivative financial instruments
|
|
|
|
|
|
(1.2
|
)
|
|
|
|
|
—
|
|
Goodwill impairment
|
|
|
|
|
|
(33.4
|
)
|
|
|
|
|
—
|
|
Other
|
|
|
|
|
|
—
|
|
|
|
|
|
(0.3
|
)
|
|
|
Operating income (loss)
|
|
|
|
|
|
25.2
|
|
|
|
|
|
36.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Logistics and Related Activities
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
|
|
|
|
|
|
(33.8
|
)
|
|
|
|
|
4.5
|
|
Amortization
|
|
|
|
|
|
(2.8
|
)
|
|
|
|
|
—
|
|
Derivative financial instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Exclusion of fair value mark-to-market gains (losses)
|
|
|
|
(4.8
|
)
|
|
|
|
|
18.1
|
|
|
|
|
Inclusion of cash amounts (received) paid (2)
|
|
|
|
(10.2
|
)
|
|
|
|
|
(18.9
|
)
|
|
|
Total derivative financial instruments
|
|
|
|
|
|
(15.0
|
)
|
|
|
|
|
(0.8
|
)
|
Other
|
|
|
|
|
|
0.1
|
|
|
|
|
|
—
|
|
|
|
Operating income (loss)
|
|
|
|
|
|
(51.5
|
)
|
|
|
|
|
3.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate and Other
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
|
|
|
|
|
|
5.0
|
|
|
|
|
|
0.6
|
|
Depreciation and depletion
|
|
|
|
|
|
(1.8
|
)
|
|
|
|
|
(1.1
|
)
|
Accretion
|
|
|
|
|
|
(0.4
|
)
|
|
|
|
|
(3.3
|
)
|
Gain on sale of Decker mine interest
|
|
|
|
|
|
—
|
|
|
|
|
|
74.3
|
|
Other
|
|
|
|
|
|
(0.4
|
)
|
|
|
|
|
—
|
|
|
|
Operating income (loss)
|
|
|
|
|
|
2.4
|
|
|
|
|
|
70.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Eliminations
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
|
|
|
|
|
|
(1.3
|
)
|
|
|
|
|
(1.5
|
)
|
|
|
Operating loss
|
|
|
|
|
|
(1.3
|
)
|
|
|
|
|
(1.5
|
)
|
Consolidated operating income (loss)
|
|
|
|
|
|
(25.4
|
)
|
|
|
|
|
109.4
|
|
Interest income
|
|
|
|
|
|
0.1
|
|
|
|
|
|
0.2
|
|
Interest expense
|
|
|
|
|
|
(36.3
|
)
|
|
|
|
|
(64.5
|
)
|
Tax agreement benefit
|
|
|
|
|
|
—
|
|
|
|
|
|
58.6
|
|
Other, net
|
|
|
|
|
|
0.2
|
|
|
|
|
|
(0.3
|
)
|
Income tax (expense) benefit
|
|
|
|
|
|
12.4
|
|
|
|
|
|
(30.7
|
)
|
Income (loss) from unconsolidated affiliates, net of tax
|
|
|
|
|
|
0.3
|
|
|
|
|
|
0.6
|
|
Net income (loss)
|
|
|
|
|
$
|
(48.7
|
)
|
|
|
|
$
|
73.3
|
|
______________________
|
(1)
|
|
Excludes premiums of $4.0 paid in prior periods for contracts
settled during the nine months ended September 30, 2015.
|
(2)
|
|
Excludes premiums of $5.8 paid at contract inception during the nine
months ended September 30, 2015.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tons Sold
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands)
|
|
|
Q3
|
|
|
Q2
|
|
|
Q1
|
|
|
Q4
|
|
|
Q3
|
|
|
Q2
|
|
|
Q1
|
|
|
Year
|
|
|
Year
|
|
|
|
2015
|
|
|
2015
|
|
|
2015
|
|
|
2014
|
|
|
2014
|
|
|
2014
|
|
|
2014
|
|
|
2014
|
|
|
2013
|
Mine
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Antelope
|
|
|
9,038
|
|
|
7,660
|
|
|
9,003
|
|
|
9,035
|
|
|
8,239
|
|
|
8,085
|
|
|
8,288
|
|
|
33,647
|
|
|
31,354
|
|
Cordero Rojo
|
|
|
6,947
|
|
|
4,515
|
|
|
5,913
|
|
|
9,276
|
|
|
8,535
|
|
|
8,551
|
|
|
8,447
|
|
|
34,809
|
|
|
36,671
|
|
Spring Creek
|
|
|
4,784
|
|
|
3,786
|
|
|
4,785
|
|
|
5,018
|
|
|
4,763
|
|
|
3,953
|
|
|
3,710
|
|
|
17,443
|
|
|
18,009
|
|
Decker (50% interest)
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
422
|
|
|
385
|
|
|
272
|
|
|
1,079
|
|
|
1,519
|
|
|
Total
|
|
|
20,769
|
|
|
15,960
|
|
|
19,701
|
|
|
23,329
|
|
|
21,959
|
|
|
20,974
|
|
|
20,716
|
|
|
86,978
|
|
|
87,552
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20151027006760/en/ Copyright Business Wire 2015
Source: Business Wire
(October 27, 2015 - 4:15 PM EDT)
News by QuoteMedia
www.quotemedia.com
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