Contura Announces First Quarter Results

BRISTOL, Tenn., May 30, 2017 – 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 EBITDA [1]$128.8
Operating cash flow$136.2
Capital expenditures$12.9
Tons of coal sold13.1

[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.

 

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)

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

 

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

 

 

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

 

RECONCILIATION OF NON-GAAP MEASURES
(Amounts in thousands)