Alpha Pronounces Preliminary, Unaudited Fourth Quarter 2022 Monetary Outcomes
Difficult Geology, Transportation Points Contribute to Fewer Shipped Tons and Larger Value of Coal Gross sales for the Quarter
BRISTOL, Tenn., Jan. 30, 2023 /PRNewswire/ — Alpha Metallurgical Assets, Inc. (NYSE: AMR) (“Alpha” or the “Firm”), a number one U.S. provider of metallurgical merchandise for the metal trade, in the present day introduced preliminary, unaudited monetary outcomes for the fourth quarter ending December 31, 2022.
(tens of millions, besides per share) |
|
Three months ended |
|
Dec. 31, 2022 |
|
Internet revenue |
$220.7 |
Internet revenue per diluted share |
$13.37 |
Adjusted EBITDA(1) |
$247.9 |
Tons of coal bought |
3.9 |
__________________________________
1. These are non-GAAP monetary measures. A reconciliation of Internet Revenue to Adjusted EBITDA is included in tables accompanying the monetary schedules. |
“Upfront of our formal earnings announcement in late February, we’re offering an preliminary have a look at what ended up being a difficult quarter from a manufacturing and price standpoint,” mentioned Andy Eidson, Alpha’s chief government officer. “Our volumes for the quarter got here in decrease than anticipated as a result of a confluence of adverse components, mainly some difficult, however short-term, geological situations at just a few of our largest mines and transportation points in transferring our coal from the mines to preparation crops and practice loadouts. When mixed with just a few weather-related energy outages, delays ensuing from scarcity of sure part gear components, and vacation shutdowns limiting extra work hours obtainable to recuperate misplaced manufacturing, these headwinds made for a weaker-than-anticipated quarter and higher-than-projected price atmosphere.”
Eidson continued: “We have now taken steps to handle these points. Mine advance charges in January are again to regular ranges on the mines the place we skilled late-2022 points, and we imagine the geological points are actually behind us. We’re additionally seeing enchancment within the capacity to maneuver coal from the mines to our crops, and we’ve got taken proactive steps to shore up our components and gear provide chain. We sit up for sharing extra element about these efforts on our February 23 earnings convention name.”
Preliminary Monetary Efficiency
Alpha expects to report web revenue of $220.7 million, or $13.37 per diluted share, for the fourth quarter 2022.
For the fourth quarter, whole Adjusted EBITDA was $247.9 million.
Coal Revenues |
|
(tens of millions) |
|
Three months ended |
|
Dec. 31, 2022 |
|
Met Phase |
$804.9 |
All Different |
$16.3 |
Met Phase (excl. freight & dealing with)(1) |
$699.0 |
All Different (excl. freight & dealing with)(1) |
$16.3 |
Tons Offered |
(tens of millions) |
Three months ended |
|
Dec. 31, 2022 |
|
Met Phase |
3.8 |
All Different |
0.1 |
__________________________________
1. Represents Non-GAAP coal revenues which is outlined and reconciled underneath “Non-GAAP Monetary Measures” and “Outcomes of Operations.” |
Coal Gross sales Realization(1) |
|
(per ton) |
|
Three months ended |
|
Dec. 31, 2022 |
|
Met Phase |
$186.29 |
All Different |
$126.10 |
__________________________________
1. Represents Non-GAAP coal gross sales realization which is outlined and reconciled underneath “Non-GAAP Monetary Measures” and “Outcomes of Operations.” |
Value of Coal Gross sales |
|
(in tens of millions, besides per ton information) |
|
Three months ended |
|
Dec. 31, 2022 |
|
Value of Coal Gross sales |
$549.1 |
Value of Coal Gross sales (excl. freight & dealing with/idle)(1) |
$434.3 |
(per ton) |
|
Met Phase(1) |
$112.97 |
All Different(1) |
$80.76 |
__________________________________
1. Represents Non-GAAP price of coal gross sales and Non-GAAP price of coal gross sales per ton which is outlined and reconciled underneath “Non-GAAP Monetary Measures” and “Outcomes of Operations.” |
Alpha’s chief monetary officer, Todd Munsey, commented on the preliminary outcomes for full 12 months 2022: “As a result of operational challenges alongside elevated labor and advantages prices for our workforce, we count on to report Non-GAAP prices per ton barely above the highest finish of our full 12 months steerage vary for Met section price of coal gross sales. Whereas our fourth quarter 2022 outcomes clearly underperformed our expectations, 2022 was a 12 months of file monetary efficiency. We imagine this efficiency is an indicator of the collective staff’s capabilities that we count on to construct on and spotlight within the present 12 months.”
As of December 31, 2022, Alpha had whole liquidity of $441.1 million, together with money and money equivalents of $301.9 million, short-term investments of $46.1 million, and $93.1 million of unused availability underneath the ABL. The longer term obtainable capability underneath the ABL is topic to stock and accounts receivable collateral necessities and the upkeep of sure monetary ratios. As of December 31, 2022, the corporate had no borrowings and $61.9 million in letters of credit score excellent underneath the ABL.
Share Repurchase Program
In 2022, Alpha’s board of administrators licensed a share repurchase program permitting for the expenditure of as much as $1 billion for the repurchase of the corporate’s widespread inventory. As of December 31, 2022, the corporate had acquired roughly 3.5 million shares of widespread inventory at a value of roughly $517 million. The variety of widespread inventory shares excellent as of December 31, 2022 was 15,552,676, not together with the possibly dilutive impact of unexercised warrant shares or unvested fairness awards.
The timing and quantity of share repurchases will proceed to be decided by the corporate’s administration based mostly on its analysis of market situations, the buying and selling worth of the inventory, relevant authorized necessities, compliance with the provisions of the corporate’s debt agreements, and different components.
Observe About Preliminary Outcomes
The monetary outcomes introduced on this launch are preliminary and should change. This preliminary monetary data contains calculations or figures which have been ready internally by administration. The Firm’s impartial registered public accounting agency has not completed its audit of, and doesn’t categorical an opinion with respect to, this information. There could be no assurance that the Firm’s precise outcomes for the durations introduced herein is not going to differ from the preliminary monetary outcomes introduced herein, and such modifications might be materials. These preliminary monetary outcomes shouldn’t be seen as an alternative to full monetary statements ready in accordance with GAAP and aren’t essentially indicative of the outcomes to be achieved for any future durations. This preliminary monetary data might be impacted by the results of the Firm’s monetary closing procedures, remaining changes, and different developments, together with the continued audit of the Firm’s consolidated monetary statements.
Earnings Announcement and Convention Name
The corporate plans to announce its definitive fourth quarter 2022 monetary outcomes earlier than the market opens on Thursday, February 23, 2023. The corporate additionally expects to carry a convention name relating to its fourth quarter 2022 outcomes on February 23, 2023, at 10:00 a.m. Japanese time. The convention name shall be obtainable dwell on the investor part of the corporate’s web site at https://investors.alphametresources.com/investors. Analysts who wish to take part within the convention name ought to dial 877-407-0832 (home toll-free) or 201-689-8433 (worldwide) roughly quarter-hour prior to start out time.
About Alpha Metallurgical Assets
Alpha Metallurgical Assets (NYSE: AMR) is a Tennessee-based mining firm with operations throughout Virginia and West Virginia. With prospects throughout the globe, high-quality reserves and important port capability, Alpha reliably provides metallurgical merchandise to the metal trade. For extra data, go to www.AlphaMetResources.com.
Ahead-Trying Statements
This information launch contains forward-looking statements. These forward-looking statements are based mostly on Alpha’s expectations and beliefs regarding future occasions and contain dangers and uncertainties that will trigger precise outcomes to vary materially from present expectations. These components are troublesome to foretell precisely and could also be past Alpha’s management. Ahead-looking statements on this information launch or elsewhere converse solely as of the date made. New uncertainties and dangers come up on occasion, and it’s unattainable for Alpha to foretell these occasions or how they could have an effect on Alpha. Besides as required by regulation, Alpha has no obligation to, and doesn’t intend to, replace or revise the forward-looking statements on this information launch or elsewhere after the date this launch is issued. In gentle of those dangers and uncertainties, buyers ought to take into account that outcomes, occasions or developments mentioned in any forward-looking assertion made on this information launch could not happen.
INVESTOR AND MEDIA CONTACT: EMILY O’QUINN
[email protected]
[email protected]
423.573.0369
FINANCIAL TABLES FOLLOW
Non-GAAP Monetary Measures
The dialogue under accommodates “non-GAAP monetary measures.” These are monetary measures which both exclude or embody quantities that aren’t excluded or included in probably the most immediately comparable measures calculated and introduced in accordance with typically accepted accounting rules in the US (“U.S. GAAP” or “GAAP”). Particularly, we make use of the non-GAAP monetary measures “Adjusted EBITDA,” “non-GAAP coal revenues,” “non-GAAP price of coal gross sales,” “non-GAAP coal margin,” and “Adjusted price of produced coal bought.” We use Adjusted EBITDA to measure the working efficiency of our segments and allocate sources to the segments. Adjusted EBITDA doesn’t purport to be a substitute for web revenue (loss) as a measure of working efficiency or every other measure of working outcomes or liquidity introduced in accordance with GAAP. We use non-GAAP coal revenues to current coal revenues generated, excluding freight and dealing with success revenues. Non-GAAP coal gross sales realization per ton for our operations is calculated as non-GAAP coal revenues divided by tons bought. We use non-GAAP price of coal gross sales to regulate price of coal gross sales to take away freight and dealing with prices, depreciation, depletion and amortization – manufacturing (excluding the depreciation, depletion and amortization associated to promoting, common and administrative features), accretion on asset retirement obligations, amortization of acquired intangibles, web, and idled and closed mine prices. Non-GAAP price of coal gross sales per ton for our operations is calculated as non-GAAP price of coal gross sales divided by tons bought. Non-GAAP coal margin per ton for our coal operations is calculated as non-GAAP coal gross sales realization per ton for our coal operations much less non-GAAP price of coal gross sales per ton for our coal operations. We additionally use Adjusted price of produced coal bought to differentiate the price of captive produced coal from the results of bought coal. The presentation of those measures shouldn’t be thought of in isolation, or as an alternative to evaluation of our outcomes as reported underneath GAAP.
Administration makes use of non-GAAP monetary measures to complement GAAP outcomes to offer a extra full understanding of the components and developments affecting the enterprise than GAAP outcomes alone. The definition of those non-GAAP measures could also be modified periodically by administration to regulate for important objects necessary to an understanding of working developments and to regulate for objects that won’t replicate the development of future outcomes by excluding transactions that aren’t indicative of our core working efficiency. Moreover, analogous measures are utilized by trade analysts to guage the Firm’s working efficiency. As a result of not all corporations use equivalent calculations, the displays of those measures will not be akin to different equally titled measures of different corporations and might differ considerably from firm to firm relying on long-term strategic choices relating to capital construction, the tax jurisdictions by which corporations function, and capital investments.
Included under are reconciliations of non-GAAP monetary measures to GAAP monetary measures.
ALPHA METALLURGICAL RESOURCES, INC. AND SUBSIDIARIES ADJUSTED EBITDA RECONCILIATION (Quantities in hundreds) |
|
Three Months Ended |
|
Internet revenue |
$ 220,680 |
Curiosity expense |
1,747 |
Curiosity revenue |
(1,775) |
Revenue tax profit |
(7,748) |
Depreciation, depletion and amortization |
23,930 |
Non-cash inventory compensation expense |
3,381 |
Mark-to-market adjustment – acquisition-related obligations |
(1,735) |
Accretion on asset retirement obligations |
5,943 |
Amortization of acquired intangibles, web |
3,460 |
Adjusted EBITDA |
$ 247,883 |
ALPHA METALLURGICAL RESOURCES, INC. AND SUBSIDIARIES RESULTS OF OPERATIONS |
|||||
Three Months Ended December 31, 2022 |
|||||
(In hundreds, aside from per ton information) |
Met |
All Different |
Consolidated |
||
Coal revenues |
$ 804,876 |
$ 16,266 |
$ 821,142 |
||
Much less: Freight and dealing with success revenues |
(105,911) |
1 |
(105,910) |
||
Non-GAAP Coal revenues |
$ 698,965 |
$ 16,267 |
$ 715,232 |
||
Tons bought |
3,752 |
129 |
3,881 |
||
Non-GAAP Coal gross sales realization per ton |
$ 186.29 |
$ 126.10 |
$ 184.29 |
||
Value of coal gross sales (unique of things proven individually under) |
$ 541,547 |
$ 7,596 |
$ 549,143 |
||
Depreciation, depletion and amortization – manufacturing (1) |
19,575 |
4,083 |
23,658 |
||
Accretion on asset retirement obligations |
3,412 |
2,531 |
5,943 |
||
Amortization of acquired intangibles, web |
2,517 |
943 |
3,460 |
||
Complete Value of coal gross sales |
$ 567,051 |
$ 15,153 |
$ 582,204 |
||
Much less: Freight and dealing with prices |
(105,911) |
1 |
(105,910) |
||
Much less: Depreciation, depletion and amortization – manufacturing (1) |
(19,575) |
(4,083) |
(23,658) |
||
Much less: Accretion on asset retirement obligations |
(3,412) |
(2,531) |
(5,943) |
||
Much less: Amortization of acquired intangibles, web |
(2,517) |
(943) |
(3,460) |
||
Much less: Idled and closed mine prices |
(11,754) |
2,821 |
(8,933) |
||
Non-GAAP Value of coal gross sales |
$ 423,882 |
$ 10,418 |
$ 434,300 |
||
Tons bought |
3,752 |
129 |
3,881 |
||
Non-GAAP Value of coal gross sales per ton |
$ 112.97 |
$ 80.76 |
$ 111.90 |
(1) Depreciation, depletion and amortization – manufacturing excludes the depreciation, depletion and amortization associated to promoting, common and administrative features. |
Three Months Ended December 31, 2022 |
|||||
(In hundreds, aside from per ton information) |
Met |
All Different |
Consolidated |
||
Coal revenues |
$ 804,876 |
$ 16,266 |
$ 821,142 |
||
Much less: Complete Value of coal gross sales (per desk above) |
(567,051) |
(15,153) |
(582,204) |
||
GAAP Coal margin |
$ 237,825 |
$ 1,113 |
$ 238,938 |
||
Tons bought |
3,752 |
129 |
3,881 |
||
GAAP Coal margin per ton |
$ 63.39 |
$ 8.63 |
$ 61.57 |
||
GAAP Coal margin |
$ 237,825 |
$ 1,113 |
$ 238,938 |
||
Add: Depreciation, depletion and amortization – manufacturing (1) |
19,575 |
4,083 |
23,658 |
||
Add: Accretion on asset retirement obligations |
3,412 |
2,531 |
5,943 |
||
Add: Amortization of acquired intangibles, web |
2,517 |
943 |
3,460 |
||
Add: Idled and closed mine prices |
11,754 |
(2,821) |
8,933 |
||
Non-GAAP Coal margin |
$ 275,083 |
$ 5,849 |
$ 280,932 |
||
Tons bought |
3,752 |
129 |
3,881 |
||
Non-GAAP Coal margin per ton |
$ 73.32 |
$ 45.34 |
$ 72.39 |
(1) Depreciation, depletion and amortization – manufacturing excludes the depreciation, depletion and amortization associated to promoting, common and administrative features. |
Three Months Ended December 31, 2022 |
|||||
(In hundreds, aside from per ton information) |
Met |
All Different |
Consolidated |
||
Non-GAAP Value of coal gross sales |
$ 423,882 |
$ 10,418 |
$ 434,300 |
||
Much less: price of bought coal bought |
(37,238) |
— |
(37,238) |
||
Adjusted price of produced coal bought |
$ 386,644 |
$ 10,418 |
$ 397,062 |
||
Produced tons bought |
3,561 |
130 |
3,691 |
||
Adjusted price of produced coal bought per ton (1) |
$ 108.58 |
$ 80.14 |
$ 107.58 |
(1) Value of produced coal bought per ton for our operations is calculated as non-GAAP price of produced coal bought divided by produced tons bought. |
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SOURCE Alpha Metallurgical Assets, Inc.