May 30, 2017 - 4:05 PM EDT
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Contura Announces First Quarter Results

BRISTOL, Tenn., May 30, 2017 /PRNewswire/ -- Contura Energy, Inc. today reported its first quarter 2017 results.  These figures update and expand upon the preliminary first quarter results announced on May 12, 2017.  

Highlights for the first quarter include:

  • Coal revenue of $509 million, including $149 million from CAPP and $167 million from Trading and Logistics
  • Net Income of $37 million, or $3.47 per diluted share
  • Adjusted EBITDA of $129 million
  • Unrestricted cash balance of $241 million at the end of March

             

(millions, except per share)









First Quarter

2017

Coal revenues








$508.9

Net Income








$37.3

Net Income per diluted share








$3.47

Adjusted EBITDA1








$128.8

Operating cash flow








$136.2

Capital expenditures








$12.9

Tons of coal sold








13.1

 

1 This is a non-GAAP financial measure.  A reconciliation of net income to adjusted EBITDA is included in a table accompanying the financial schedules.

Financial Performance

  • Coal revenues in the first quarter were $508.9 million, with Central Appalachia (CAPP) accounting for $148.7 million and Trading and Logistics accounting for $166.7 million. On the thermal side, Northern Appalachia (NAPP) revenue totaled $97.7 million and the Powder River Basin (PRB) generated $95.8 million in coal sales.

    For the first quarter, CAPP metallurgical coal shipments were 1.1 million tons at an average per-ton realization of $140.54. Contura shipped 8.8 million tons of PRB coal during the quarter at an average per-ton realization of $10.92, while NAPP shipments totaled 2.2 million tons at an average per-ton realization of $44.39. Within the Trading and Logistics segment, 1.0 million tons of coal were shipped at an average price of $158.62 per ton.
  • Total costs and expenses during the first quarter were $476.8 million and cost of coal sales was $368.2 million. The cost of coal sales in CAPP during for the quarter averaged $74.79 per ton. NAPP and PRB costs averaged $29.55 per ton and $9.52 per ton, respectively. Trading and Logistics average cost of coal sales was $134.04 per ton.
  • Selling, general and administrative (SG&A) expenses in the first quarter were $13.8 million, which includes approximately $2.4 million of non-recurring expenses associated with the formation of the company and costs related to the company's filing of a registration statement with the SEC, as well as $1.4 million of non-cash stock compensation charges. Depreciation, depletion and amortization was $16.9 million during the first quarter and amortization of acquired intangibles was $19.7 million. Other income included a mark-to-market change in value of warrants totaling $2.2 million, a non-cash gain.
  • Contura recorded a net income of $37.3 million, or $3.47 per diluted share for the first quarter.
  • Adjusted EBITDA was $128.8 million for the quarter.

Liquidity and Capital Resources

Cash provided by operating activities for the first quarter was $136.2 million, while capital expenditures were $12.9 million.

At quarter-end, Contura had $240.6 million in unrestricted cash.  Total long-term debt, including the current portion of long-term debt as of March 31, 2017, was approximately $391.4 million.

ABOUT CONTURA ENERGY

Contura Energy is a private, Tennessee-based company with affiliate mining operations across multiple major coal basins in Pennsylvania, Virginia, West Virginia and Wyoming. With customers across the globe, high-quality reserves and significant port capacity, Contura Energy reliably supplies both metallurgical coal to produce steel and thermal coal to generate power. For more information, visit www.conturaenergy.com.

FORWARD-LOOKING STATEMENTS

This news release includes forward-looking statements, including but not limited to statements regarding Contura's financial results for the three months ended March 31, 2017 performance.  These forward-looking statements are based on Contura's expectations and beliefs concerning future events and involve risks and uncertainties that may cause actual results to differ materially from current expectations.  These factors are difficult to predict accurately and may be beyond Contura's control. You should review the risks and uncertainties discussed in the Company's condensed consolidated financial statements and report for the period ended December 31, 2016, which are available on our website.

Forward-looking statements in this news release or elsewhere speak only as of the date made.  New uncertainties and risks arise from time to time, and it is impossible for Contura to predict these events or how they may affect the Company.  Contura has no duty to, and does not intend to, update or revise the forward-looking statements in this news release or elsewhere after the date this release is issued.  In light of these risks and uncertainties, investors should keep in mind that results, events or developments disclosed in any forward-looking statement made in this news release may not occur. 

INVESTOR CONTACT
[email protected]

Alex Rotonen
423.573.0396

MEDIA CONTACTS
[email protected]

Rick Axthelm
423.573.0304

Emily O'Quinn
423.573.0369

FINANCIAL TABLES FOLLOW

Use of Non-GAAP Measures

In addition to the results prepared in accordance with generally accepted accounting principles in the United States (GAAP) provided throughout this press release, Contura has presented the following non-GAAP financial measure, which management uses to gauge operating performance: Adjusted EBITDA.  This non-GAAP financial measure excludes various items detailed in the attached reconciliation table.

The definition of this non-GAAP measure may be changed periodically by management to adjust for significant items important to an understanding of operating trends.  This measure is not intended to replace financial performance measures determined in accordance with GAAP. Rather, it is presented as a supplemental measure of the Company's performance that management finds useful in assessing the Company's financial performance and believes is useful to securities analysts, investors and others in assessing the Company's performance over time.  Moreover, this measure is not calculated identically by all companies and therefore may not be comparable to similarly titled measures used by other companies.

 

CONTURA ENERGY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited)
(Amounts in thousands, except share and per share data)



Three Months Ended March 31, 2017

Revenues:


Coal revenues

$

508,890


Freight and handling revenues

60,223


Other revenues

4,320


Total revenues

573,433


Costs and expenses:


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

368,152


Freight and handling costs

60,223


Other expenses

1,453


Depreciation, depletion and amortization

16,931


Amortization of acquired intangibles, net

19,658


Selling, general and administrative expenses (exclusive of depreciation, depletion and amortization shown separately above)

13,829


Secondary offering costs

942


Mark-to-market adjustment - acquisition-related obligations

(4,357)


Total costs and expenses

476,831


Income from operations

96,602


Other income (expense):


Interest expense

(11,468)


Interest income

31


Loss on early extinguishment of debt

(38,701)


Mark-to-market adjustment for warrant derivative liability

2,160


Equity loss in affiliates

(1,211)


Miscellaneous income, net

205


Total other expense, net

(48,984)


Income before income taxes

47,618


Income tax expense

(10,347)


Net income

$

37,271


Basic income per common share

$

3.62


Diluted income per common share

$

3.47


Weighted average shares - basic

10,309,428


Weighted average shares - diluted

10,728,281



 

 

CONTURA ENERGY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET (Unaudited)
(Amounts in thousands, except share and per share data)




March 31, 2017

Assets


Current assets:


Cash and cash equivalents

$

240,607


Trade accounts receivable, net

136,458


Inventories, net

63,625


Assets held for sale

1,714


Prepaid expenses and other current assets

34,870


Total current assets

477,274


Property, plant, and equipment, net

316,035


Other acquired intangibles (net of accumulated amortization of $81,509)

67,491


Long-term restricted cash

49,321


Long-term deposits

55,435


Other non-current assets

34,343


Total assets

$

999,899


Liabilities and Stockholders' Equity


Current liabilities:


Current portion of long-term debt

$

6,461


Trade accounts payable

87,807


Acquisition-related obligations - current

19,218


Accrued expenses and other current liabilities

81,379


Total current liabilities

194,865


Long-term debt

384,893


Acquisition-related obligations - long-term

52,884


Asset retirement obligations

192,091


Other non-current liabilities

99,287


Total liabilities

924,020




Stockholders' Equity


Preferred stock - par value $0.01, 2.0 million shares authorized, none issued


Common stock - par value $0.01, 20.0 million shares authorized, 10.3 million issued and outstanding at March 31, 2017

103


Additional paid-in capital

47,420


Accumulated other comprehensive income

2,016


Treasury stock, at cost: 81 shares at March 31, 2017

(1)


Retained earnings

26,341


Total stockholders' equity

75,879


Total liabilities and stockholders' equity

$

999,899



 

 

CONTURA ENERGY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited)
(Amounts in thousands)  



Three Months Ended

March 31, 2017

Operating activities:


Net income

$

37,271


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


Depreciation, depletion and amortization

16,931


Amortization of acquired intangibles, net

19,658


Accretion of acquisition-related obligations discount

2,413


Mark-to-market adjustment for warrants derivative liability

(2,160)


Mark-to-market adjustment for acquisition-related obligations

(4,357)


Equity loss in affiliates

1,211


Accretion of asset retirement obligations

5,525


Employee benefit plans, net

1,178


Non-cash loss on extinguishment of debt

13,665


Other, net

2,006


Changes in operating assets and liabilities

42,873


Net cash provided by operating activities

136,213


Investing activities:


Capital expenditures

(12,878)


Proceeds from sale of property, plant and equipment

250


Capital contribution to equity affiliates

(1,180)


Purchase of additional ownership interest in equity affiliate

(13,293)


Net cash used in investing activities

(27,101)


Financing activities:


Proceeds from borrowings on debt

396,000


Principal repayments of debt

(356,500)


Principal repayments of capital lease obligations

(223)


Debt issuance costs

(10,389)


Debt extinguishment costs

(25,036)


Principal repayments of notes payable

(305)


Net cash provided by financing activities

3,547


Net increase in cash and cash equivalents

112,659


Cash and cash equivalents at beginning of period

127,948


Cash and cash equivalents at end of period

$

240,607




Supplemental cash flow information:


Cash paid for interest

$

20,627


Supplemental disclosure of non-cash investing and financing activities:


Capital leases and capital financing - equipment

$

147


Accrued capital expenditures

$

7,799



 

 

CONTURA ENERGY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (Unaudited)
(Amounts in thousands)



Common Stock


Additional

Paid-in Capital


Accumulated

Other

Comprehensive Income


Treasury


Retained Earnings


Total

Stockholders' Equity


Shares


Amount




Stock at Cost


Balances, December 31, 2016

10,309



$

103



$

45,964



$

2,087



$



$

(10,930)



$

37,224


Net income











37,271



37,271


Other comprehensive loss







(71)







(71)


Stock-based compensation and net issuance of common stock for share vesting





1,456





(1)





1,455


Balances, March 31, 2017

10,309



$

103



$

47,420



$

2,016



$

(1)



$

26,341



$

75,879


 

 

Reconciliation of Non-GAAP measures


Three Months Ended March 31, 2017


CAPP


NAPP


PRB


Trading and Logistics


All
Other


Consolidated

Net income (loss)

$

64,367



$

30,284



$

5,019



$

5,669



$

(68,068)



$

37,271


Interest expense

60



51



192





11,165



11,468


Interest income

(3)









(28)



(31)


Income tax expense









10,347



10,347


Depreciation, depletion and amortization

5,505



3,156



8,082





188



16,931


Mark-to-market adjustment for warrant derivative liability









(2,160)



(2,160)


Mark-to-market adjustment - acquisition-related obligations









(4,357)



(4,357)


Secondary offering costs









942



942


Loss on early extinguishment of debt









38,701



38,701


Amortization of acquired intangibles, net







19,658





19,658


Adjusted EBITDA

$

69,929



$

33,491



$

13,293



$

25,327



$

(13,270)



$

128,770


 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/contura-announces-first-quarter-results-300465691.html

SOURCE Contura Energy, Inc.


Source: PR Newswire (May 30, 2017 - 4:05 PM EDT)

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