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(Corrected) Alpha Natural Resources Announces Results for Second Quarter 2013

-- Second quarter 2013 revenue and adjusted EBITDA of $1.3 billion and $76 million, respectively
-- Continued to address capital structure and debt maturities; 2015 maturities reduced by approximately $600 million in Q2
-- Maintained liquidity position of approximately $1.9 billion, including approximately $1 billion in cash and marketable securities
-- Continues to optimize operations to match production with anticipated demand
-- Commitment to industry-leading safety platform continues with the dedication of the Running Right Leadership Academy in Julian, West Virginia

BRISTOL, Va., Aug. 2, 2013 /PRNewswire/ -- Alpha Natural Resources, Inc. (NYSE: ANR), a leading U.S. coal producer, reported a second quarter 2013 net loss of $186 million or $0.84 per diluted share compared with a net loss of $2.2 billion or $10.14 per diluted share in the second quarter of 2012 which included approximately $2.5 billion of pre-tax impairment and restructuring charges.  Excluding the items described in our "Reconciliation of Adjusted Net Loss to Net Loss," the second quarter 2013 adjusted net loss was $121 million or $0.55 per diluted share compared with adjusted net loss of $72 million or $0.33 per diluted share in the second quarter of 2012.

Earnings before interest, taxes, depreciation, depletion and amortization (EBITDA) for the second quarter of 2013 was $3 million, compared with an EBITDA loss of $2.4 billion in the year ago period.  Excluding the items described in our "Reconciliation of EBITDA and Adjusted EBITDA to Net Loss," the second quarter 2013 Adjusted EBITDA was $76 million, compared with $186 million in the second quarter of 2012. 

Quarterly Financial & Operating Highlights
(millions, except per-share and per ton amounts)

       
 

Q2

2013

Q1

2013

Q2

2012

 

Coal revenues

$1,123.2

$1,140.4

$1,565.3

Net loss

($185.7)

($110.8)

($2,234.7)

Net loss per diluted share

($0.84)

($0.50)

($10.14)

Adjusted net loss1

($121.0)

($104.1)

($72.3)

Adjusted net loss per diluted share1

($0.55)

($0.47)

($0.33)

EBITDA1

$3.0

$104.8

($2,383.7)

Adjusted EBITDA1

$76.4

$117.5

$186.4

Tons of coal sold

21.6

22.9

26.8

Weighted average coal margin per ton

$2.72

$6.12

$6.57

Adjusted weighted average coal margin per ton1

$3.90

$6.23

$8.16

       
       

 

1. These are non-GAAP financial measures. A reconciliation of adjusted net loss to net loss, EBITDA and adjusted EBITDA to net loss, and adjusted cost of coal sales per ton to cost of coal sales per ton are included in tables accompanying the financial schedules. Adjusted weighted average coal margin per ton is defined as the weighted average total sales realization per ton, less the adjusted weighted average total cost of coal sales per ton.

"Alpha continues to proactively address changing market conditions by optimizing our mine portfolio and idling additional uneconomic metallurgical and thermal coal capacity, and we anticipate additional actions may be required between now and the end of the year.  At the same time, we remain focused on adjusting our overhead and capital expenditures in proportion with our changing operational footprint," said Kevin Crutchfield, chairman and CEO.  "In this environment, operational execution and the ability to implement thoughtful changes with alacrity are paramount to our success.  In addition, our commitment to safety has never been stronger as evidenced by the recent dedication of our Running Right Leadership Academy, an industry-leading training facility that will enable our workforce to gain critical skills and experience in a safe and controlled training environment.  The Leadership Academy is the first of its kind and will advance Alpha and the industry toward the goal of zero fatalities and a 50 percent reduction in lost time accidents."

Operationally, Alpha shipped 5.6 million tons of metallurgical coal during the second quarter of 2013, up 10 percent from the first quarter of the year.  Despite strong met shipments, the quarter was not without its challenges.  The global market for seaborne metallurgical coal remains oversupplied, further pressuring margins.  The market for export steam coal in the Atlantic basin is currently uneconomic for most, if not all, U.S. production.   Domestic utility inventories are decreasing, which should lead to a more balanced supply/demand picture in the future, but the domestic markets for Central Appalachian (CAPP) and Powder River Basin (PRB) thermal coals continue to be characterized by oversupply in the case of the former and the threat of oversupply stemming from latent capacity in the case of the latter.  In addition to these macro headwinds, Alpha experienced unexpected downtime at the Cumberland Mine and less favorable mining conditions at the Emerald Mine, both of which limited production and shipments of Alpha's relatively higher margin Pittsburgh #8 coal.  Increased unit costs at our Pittsburgh #8 longwalls primarily drove the sequential increase in adjusted cost of coal sales per ton from our Eastern operations in the second quarter.

During the second quarter of 2013, Alpha proactively continued to address its debt structure.  In early May, Alpha raised approximately $335 million, net of underwriting fees, through the issuance of $345 million aggregate principal amount of new 3.75% convertible senior notes due 2017, including the fully exercised over-allotment of $45 million. The proceeds, together with approximately $65 million of cash on hand, were used to fund purchases of approximately $181 million of the Company's 2.375% convertible senior notes due 2015 and $226 million of the 3.25% convertible senior notes due 2015.  Alpha also successfully amended and restated its secured credit agreement, increasing the company's revolving credit facility to $1.1 billion, eliminating its accounts receivable securitization facility, replacing the previously outstanding $525 million Term Loan A with a new $625 million Term Loan B, and relaxing Alpha's financial covenant requirements through 2016. 

Together, these actions were designed to be essentially cash-neutral, and, as of June 30, 2013, Alpha maintained liquidity of approximately $1.9 billion, including approximately $1 billion in cash and marketable securities. 

According to Mr. Crutchfield, "Alpha has accomplished several key objectives with respect to its capital structure: 1) managing debt maturities by refinancing some maturities with longer-dated instruments; 2) reducing our 2015 maturities, which now stand at approximately $400 million; 3) relaxing covenant requirements in order to weather a challenging market environment; 4) limiting potential equity dilution from the new 2017 converts with a 50% conversion premium; and 5) maintaining our cash and liquidity position."

Financial Performance

 

 

 

 

Year-to-Date Results

 

 

Liquidity and Capital Resources

Cash provided by operating activities for the quarter ended June 30, 2013 was $2 million, compared with cash consumed by operating activities of $31 million for the second quarter of 2012.  Capital expenditures for the second quarter of 2013 were $63 million, compared with $119 million in the second quarter of 2012. 

As of the end of the second quarter of 2013, Alpha maintained total liquidity at approximately $1.9 billion, consisting of cash, cash equivalents and marketable securities of approximately $1.0 billion, plus approximately $0.9 billion available under the company's secured credit facility.  Total long-term debt, including the current portion of long-term debt as of June 30, 2013 was approximately $3.4 billion

 

Market Overview

During the second quarter of 2013, the global seaborne market for metallurgical coal deteriorated further due to increasing supply out of Australia together with the expectation of slowing Chinese steel production growth and the ongoing economic malaise in Europe and Brazil.  The third quarter Asian benchmark price was announced at $145 per metric tonne, down $27 from $172 per metric tonne in the preceding quarter, and recent spot transactions have been reported at levels approximately $15 below the current benchmark.  Lower capacity utilization rates have allowed many steelmakers to lengthen cycle times in their coke ovens, enabling them to increase their reliance on lower quality metallurgical coals in order to manage their input costs.  While the market remains weak, lower rank metallurgical coal prices have changed little in the last several months and higher quality metallurgical coal prices have fallen, resulting in spread compression between different qualities. 

In the current market environment, a significant proportion of global production is uneconomic, and, consequently, production cutbacks have been widespread, with several cutbacks recently announced in Australia and the United States.  Thus, the market may begin to move back toward supply/demand balance.  In the intermediate to long run, the world is expected to require increasing volumes of met coal, and assuming market conditions improve—driven by the current dearth of new development projects in the face of today's challenging market conditions—we believe Alpha will be well-positioned to benefit from its leadership position in met coal reserves, met coal production and export terminal capacity.

Nationwide utility inventories of thermal coal continue to trend lower and reached an estimated 169 million tons at the end of June.  However, market conditions for domestic thermal coal continue to vary by region.  Inventories of Northern Appalachian (NAPP) thermal coal are slightly below normal at approximately 65 days of burn, and opportunities exist for producers to contract additional volumes with utility customers.  When the Cumberland Mine is back in full production, Alpha should be positioned to benefit more fully from its strong position in NAPP. 

Utility inventories of PRB coal have continued to decrease to 67 days of burn at the end of the quarter, a level slightly below normal.  This inventory trend may suggest improving market conditions in the future; however, with prices recently reported at 3-month lows, the PRB appears to be continuing to suffer under the specter of excess capacity in the near-term. 

Inventories of CAPP thermal coals have also been decreasing but remain elevated at 134 days of burn at the end of June 2013.  We continue to believe that a significant portion of the decreased consumption of CAPP thermal coal is structural, driven by fuel switching in favor of gas, coal-fired plant retirements that are disproportionately impacting the regions served by CAPP coal, and encroachment of other lower cost coals, such as from the Illinois Basin.  In the near-term, demand has been further dampened by current API2 spot prices that render most U.S. thermal coal production, and essentially all CAPP thermal coal production, uneconomic on the export seaborne market.  In light of decreased demand for CAPP thermal coals, Alpha has significantly reduced its production thermal coal in CAPP, and the company continues to review its production footprint in CAPP as part of its ongoing optimization process in order to match production with anticipated demand.      

2013 Outlook

On July 15, 2013, Alpha announced that production had been suspended at the Cumberland Mine due to adverse geological conditions in the mine's headgate area.  Production remains suspended and work continues to remediate the roof conditions at the Cumberland headgate.  The impact on Alpha's Eastern steam coal shipment volumes and Alpha's Eastern adjusted cost of coal sales per ton in the third quarter will in large part depend on completion of the ongoing remediation work.  With regard to Alpha's expected Eastern adjusted cost of coal sales per ton for 2013, we expect these unit costs to be similar to prior estimates for eastern operations other than the Pennsylvania longwall mines.  At those two high volume operations, adjusted cost of coal sales per ton are now expected to be higher than previous estimates as a result of mining conditions and ventilation issues experienced in the second quarter and the adverse geologic conditions presently being experienced at the Cumberland mine.

Currently, Alpha expects to ship between 83 and 91 million tons during 2013, including 19 to 21 million tons of Eastern metallurgical coal, 27 to 30 million tons of Eastern steam coal, and 37 to 40 million tons of Western steam coal out of the PRB.  As of July 17, 2013, 88 percent of the midpoint of anticipated 2013 metallurgical coal shipments were committed and priced at an average per ton realization of $102.20.  Based on the midpoint of guidance, 98 percent of anticipated Eastern steam coal shipments were committed and priced at an average per ton realization of $62.66; and 100 percent of the midpoint of anticipated PRB shipments were committed and priced at an average per ton realization of $12.64.  The Company's 2013 adjusted cost of coal sales is expected to range between $72.00 and $76.00 per ton in the East and between $10.00 and $10.50 per ton in the West.  SG&A expenses are anticipated to range from $140 million to $160 million for 2013.  Interest expense and DD&A expense are anticipated to be in the ranges of $235 million to $245 million and $875 million to $950 million, respectively, and capital expenditures for 2013 are expected to fall within the range of $275 million to $325 million.

Guidance
(in millions, except per ton and percentage amounts)

   
 

2013

Average per Ton Sales Realization on

Committed and Priced Coal Shipments1,2,3

 

    West

$12.64

    Eastern Steam

$62.66

    Eastern Metallurgical

$102.20

Coal Shipments (tons)3,4,5

83 — 91

    West

37 — 40

    Eastern Steam

27 — 30

    Eastern Metallurgical

19 — 21

Committed and Priced (%)3,6

97%

    West

100%

    Eastern Steam

98%

    Eastern Metallurgical

88%

Committed and Unpriced (%)3,6,7

2%

    West

0%

    Eastern Steam

0%

    Eastern Metallurgical

7%

West — Adjusted Cost of Coal Sales per Ton

$10.00$10.50

East — Adjusted Cost of Coal Sales per Ton

$72.00$76.00

Selling, General & Administrative Expense

$140$160

Depletion, Depreciation & Amortization

$875$950

Interest Expense

$235$245

Capital Expenditures8

$275$325

Notes:                                                                                                                                                                                                                

  1. Based on committed and priced coal shipments as of July 17, 2013.
  2. Actual average per ton realizations on committed and priced tons recognized in future periods may vary based on actual freight expense in future periods relative to assumed freight expense embedded in projected average per ton realizations.
  3. Contain estimates of future coal shipments based upon contract terms and anticipated delivery schedules.  Actual coal shipments may vary from these estimates.
  4. Eastern shipments in 2013 include an estimated 0.5 to 1.0 million tons of brokered coal.
  5. The 2013 shipment range for Eastern steam coal reflects the impact of anticipated longwall moves at the Cumberland mine in September/October and at the Emerald mine in September/October.
  6. As of July 17, 2013, compared with the midpoint of shipment guidance range.
  7. In 2013, committed and unpriced Eastern tons include approximately 1.4 million tons of metallurgical coal subject to market pricing, approximately 0.1 million tons of steam coal tons subject to market pricing, and approximately 0.1 million tons of steam coal subject to average indexed pricing estimated at approximately $35 per ton.
  8. Includes the annual bonus bid payment on the Federal Lease by Application for the Belle Ayr mine of $42 million.

 

About Alpha Natural Resources

Alpha Natural Resources is one of the largest and most regionally diversified coal suppliers in the United States. With mining operations in Virginia, West Virginia, Kentucky, Pennsylvania and Wyoming, Alpha supplies metallurgical coal to the steel industry and thermal coal to generate power to customers on five continents.  Alpha is committed to being a leader in mine safety with our Running Right safety process, and an environmental steward in the communities where we operate. For more information, visit Alpha's official website at www.alphanr.com.  

Forward Looking Statements

This news release includes forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on Alpha'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 Alpha's control. The following factors are among those that may cause actual results to differ materially from our forward-looking statements:

These and other risks and uncertainties are discussed in greater detail in Alpha's Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and other documents filed with the Securities and Exchange Commission.  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 Alpha to predict these events or how they may affect the Company.  Alpha has no duty to, and does not intend to, update or revise the forward-looking statements in this news release after the date it is issued.  In light of these risks and uncertainties, investors should keep in mind that the 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, Alpha has presented the following non-GAAP financial measures, which management uses to gauge operating performance: EBITDA, adjusted EBITDA, adjusted net loss, adjusted diluted loss per common share, adjusted cost of coal sales per ton, adjusted coal margin per ton, and adjusted weighted average coal margin per ton.   These non-GAAP financial measures exclude various items detailed in the attached "Reconciliation of EBITDA and Adjusted EBITDA to Net Loss" and "Reconciliation of Adjusted Net Loss to Net Loss." 

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

 

 

 

 

Alpha Natural Resources, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations

(In Thousands Except Shares and Per Share Data)

(Unaudited)

                   
   

Three

Months

Ended

June 30,

   

Six

Months

Ended

June 30,

   

2013

 

2012

   

2013

 

2012

                   

Revenues:

                 

   Coal revenues

$

1,123,176

$

1,565,281

 

$

2,263,565

$

3,204,839

   Freight and
   
handling
   
revenues

 

155,218

 

233,357

   

312,385

 

442,707

   Other
   
revenues

 

56,729

 

49,471

   

92,764

 

135,176

      Total
      
revenues

 

1,335,123

 

1,848,109

   

2,668,714

 

3,782,722

                   

Costs and

expenses:

                 

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

 

1,081,494

 

1,406,394

   

2,093,335

 

2,821,790

   Freight and
   
handling costs

 

155,218

 

233,357

   

312,385

 

442,707

   Other expenses

 

27,782

 

10,444

   

34,781

 

29,837

   Depreciation,
   
depletion
   
and amortization

 

214,716

 

272,850

   

453,729

 

558,622

   Amortization of
   
acquired
   
intangibles, net

 

3,591

 

(17,286)

   

(1,840)

 

(52,798)

   Selling, general and
   
administrative
   
expenses
   
(exclusive of
   
depreciation,

                 

   depletion and
   
amortization
   
shown
   
separately above)

 

38,139

 

46,011

   

81,765

 

111,022

   Asset impairment
   
and restructuring

 

11,265

 

1,010,878

   

22,341

 

1,014,934

   Goodwill
   
impairment

 

-

 

1,525,332

   

-

 

1,525,332

      Total costs
      
and expenses

 

1,532,205

 

4,487,980

   

2,996,496

 

6,451,446

                   

Loss from 
operations

 

(197,082)

 

(2,639,871)

   

(327,782)

 

(2,668,724)

                   

Other income
(expense):

                 

   Interest expense

 

(60,953)

 

(46,534)

   

(120,354)

 

(91,968)

   Interest income

 

1,099

 

1,324

   

2,125

 

2,421

   Loss on early
   
extinguishment
   
of debt

 

(33,197)

 

-

   

(33,197)

 

-

   Miscellaneous
   
income, net

 

14,925

 

627

   

16,854

 

1,266

      Total other
      
expense, net

 

(78,126)

 

(44,583)

   

(134,572)

 

(88,281)

                   

Loss before
income taxes 

 

(275,208)

 

(2,684,454)

   

(462,354)

 

(2,757,005)

Income tax
benefit 

 

89,527

 

449,798

   

165,885

 

493,583

Net loss

$

(185,681)

$

(2,234,656)

 

$

(296,469)

$

(2,263,422)

                   
                   

Loss per common
share:

                 

   Basic loss per 
   common share:

$

(0.84)

$

(10.14)

 

$

(1.34)

$

(10.29)

   Diluted loss per
   
common share:

$

(0.84)

$

(10.14)

 

$

(1.34)

$

(10.29)

                   

Weighted average
shares outstanding:

                 

   Weighted
   
average shares
   
--basic

 

220,840,989

 

220,295,415

   

220,791,668

 

220,040,698

   Weighted
   
average shares
   
--diluted

 

220,840,989

 

220,295,415

   

220,791,668

 

220,040,698

                   
                   
                   

This information is intended to be reviewed in conjunction with the company's filings with the U.S. Securities and Exchange Commission.

 

 

 

 

 

Alpha Natural Resources, Inc. and Subsidiaries

Supplemental Sales, Operations and Financial Data

(In Thousands, Except Per Ton and Percentage Data)

(Unaudited)

                         
   

Three Months

Ended

   

Six Months

Ended June 30,

   

June

30,

2013

 

March

31,

2013

   

June

30,

2012

   

2013

 

2012

                         

Tons sold(1):

                       

   Powder
   
River
   
Basin

 

8,785

 

9,953

   

10,161

   

18,738

 

21,933

   Eastern
   
steam

 

7,152

 

7,901

   

11,043

   

15,053

 

22,519

   Eastern
   
metallurgical

 

5,620

 

5,051

   

5,595

   

10,671

 

10,493

       Total

 

21,557

 

22,905

   

26,799

   

44,462

 

54,945

                         
                         

Average
realized

price per
ton sold
(2)(9):

                       

   Powder
River
Basin

$

12.37

$

13.03

 

$

12.96

 

$

12.72

$

12.96

   Eastern
   
steam

$

62.54

$

61.90

 

$

65.05

 

$

62.20

$

66.29

   Eastern
   
metallurgical

$

100.95

$

103.28

 

$

127.83

 

$

102.05

$

136.08

      Weighted
      
average
      
total

$

52.10

$

49.79

 

$

58.41

 

$

50.91

$

58.33

                         

Coal
revenues:

                       

   Powder
   
River
   
Basin

$

108,633

$

129,690

 

$

131,733

 

$

238,323

$

284,174

   Eastern
   
steam

 

447,246

 

489,044

   

718,416

   

936,290

 

1,492,840

   Eastern
   
metallurgical

 

567,297

 

521,655

   

715,132

   

1,088,952

 

1,427,825

      Total coal
      
revenues

$

1,123,176

$

1,140,389

 

$

1,565,281

 

$

2,263,565

$

3,204,839

                         
                         

Adjusted cost
of
coal sales
per ton (3)(7)
(8)(11):

                       

   Powder
   
River
   
Basin

$

10.08

$

10.02

 

$

11.01

 

$

10.05

$

10.99

   East (4)

$

74.42

$

69.33

 

$

74.21

 

$

71.92

$

75.09

      Adjusted
      
weighted
      
average
      
total

$

48.20

$

43.56

 

$

50.25

 

$

45.84

$

49.50

                         

Adjusted
weighted
average

coal margin
per ton (9)

$

3.90

$

6.23

 

$

8.16

 

$

5.07

$

8.83

Adjusted 
weighted
average
coal margin
percentage
(10)

 

7.5%

 

12.5%

   

14.0%

   

10.0%

 

15.1%

                         

Cost of coal
sales per ton
(3)(7)
(11):

                       

   Powder
   River
   Basin

$

10.08

$

10.02

 

$

11.01

 

$

10.05

$

10.99

   East (4)

$

76.41

$

69.52

 

$

76.78

 

$

73.00

$

77.01

      Weighted
      
average
      
total

$

49.38

$

43.67

 

$

51.84

 

$

46.47

$

50.66

                         

Weighted
average coal
margin per
ton (5)

$

2.72

$

6.12

 

$

6.57

 

$

4.44

$

7.67

Weighted
average coal
margin
percentage
(6)

 

5.2%

 

12.3%

   

11.2%

   

8.7%

 

13.1%

                         

Net cash
provided
by (used in)
operating
activities 

$

2,098

$

65,398

 

$

(31,280)

 

$

67,496

$

135,349

Capital
expenditures 

$

62,820

$

44,186

 

$

119,470

 

$

107,006

$

245,244

                         
                         

(1) Stated in thousands of short tons.

(2) Coal revenues divided by tons sold. This statistic is stated as free on board (FOB) at the processing plant.

(3) Cost of coal sales divided by tons sold. The cost of coal sales per ton only includes costs in our Eastern and Western Coal Operations. 

(4) East includes the Company's operations in Central Appalachia (CAPP) and Northern Appalachia (NAPP).

(5) Weighted average total sales realization per ton less weighted average total cost of coal sales per ton.

(6) Weighted average coal margin per ton divided by weighted average total sales realization per ton.

(7) Amounts per ton calculated based on unrounded revenues, cost of coal sales and tons sold.

(8) For the three months ended June 30, 2013, March 31, 2013, and June 30, 2012, and for the six months ended June 30, 2013 and June 30, 2012, 

adjusted cost of coal sales per ton for East includes adjustments to exclude the impact of certain charges set forth in the table below.

(9) Weighted average total sales realization per ton less adjusted weighted average total cost of coal sales per ton.

(10) Adjusted weighted average coal margin per ton divided by weighted average total sales realization per ton.

(11) Adjusted cost of coal sales per ton for our Eastern Operations reconciled to their unadjusted amounts is as follows:

                         
   

Three months ended

   

 

Six months ended

   

June 30,

2013

 

March 31,

2013

   

June 30,

2012

   

June 30,

2013

 

June 30,

2012

Cost of coal
sales per ton-
East

$

76.41

$

69.52

 

$

76.78

 

$

73.00

$

77.01

Impact of
provision for
regulatory
costs

 

(1.82)

 

-

   

-

   

(0.90)

 

-

Impact of
merger-related
expenses

 

(0.17)

 

(0.19)

   

(2.57)

   

(0.18)

 

(1.85)

Impact of
write-
off of
weather-

related
property
damage

 

-

 

-

   

-

   

-

 

(0.07)

Adjusted cost
of coal sales
per ton-East

$

74.42

$

69.33

 

$

74.21

 

$

71.92

$

75.09

                         
                         

This information is intended to be reviewed in conjunction with the company's filings with the U.S. Securities and
Exchange Commission.

 

 

Alpha Natural Resources, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets and Supplemental Liquidity Data

(In Thousands)

(Unaudited)

           
     

 June 30,

2013 

 

 December 31,

2012 

           

Cash and cash equivalents

$

511,963

$

730,723

Trade accounts receivable, net

 

386,495

 

418,166

Inventories, net

 

383,015

 

398,060

Short-term marketable securities

 

230,530

 

297,452

Prepaid expenses and other current assets

 

464,713

 

488,821

      Total current assets

 

1,976,716

 

2,333,222

Property, equipment and mine development costs, net

 

1,984,850

 

2,219,016

Owned and leased mineral rights and land, net

 

7,249,638

 

7,428,192

Goodwill, net

 

561,753

 

567,665

Long-term marketable securities

 

238,290

 

755

Other non-current assets

 

586,947

 

540,956

      Total assets

$

12,598,194

$

13,089,806

           

Current portion of long-term debt

$

28,839

$

95,015

Trade accounts payable

 

259,524

 

255,191

Accrued expenses and other current liabilities

 

913,740

 

872,402

      Total current liabilities

 

1,202,103

 

1,222,608

Long-term debt

 

3,354,799

 

3,291,037

Pension and postretirement medical benefit obligations

 

1,165,799

 

1,195,187

Asset retirement obligations

 

777,541

 

763,482

Deferred income taxes

 

827,205

 

971,001

Other non-current liabilities

 

545,636

 

678,676

      Total liabilities

 

7,873,083

 

8,121,991

           

Total stockholders' equity 

 

4,725,111

 

4,967,815

      Total liabilities and stockholders' equity

$

12,598,194

$

13,089,806

           
     

 As of 

     

 June 30,

2013 

 

 December 31,

2012 

Liquidity ($ in 000's):

       

   Cash and cash equivalents

$

511,963

$

730,723

   Marketable securities with maturities of less than one year 

 

230,530

 

297,452

   Marketable securities with maturities of greater than one year 

 

238,290

 

755

      Total cash, cash equivalents and marketable securities

 

980,783

 

1,028,930

   Unused revolving credit and A/R securitization facilities (1)

 

949,379

 

1,023,300

      Total liquidity

$

1,930,162

$

2,052,230

           
           

(1) The revolving credit facility is subject to a minimum liquidity requirement of $300 million and we terminated the
A/R facility in May, 2013.

           

This information is intended to be reviewed in conjunction with the company's filings with the U.S. Securities and
Exchange Commission.

 

 

 

Alpha Natural Resources, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(In Thousands)

(Unaudited)

         
   

Six Months Ended June 30,

   

2013

 

2012

         

Operating activities:

       

   Net loss

$

(296,469)

$

(2,263,422)

   Adjustments to reconcile net loss to net cash provided by

       

      operating activities:

       

      Depreciation, depletion, accretion and amortization

 

509,171

 

612,019

      Amortization of acquired intangibles, net

 

(1,840)

 

(52,798)

      Mark-to-market adjustments for derivatives 

 

1,500

 

(43,641)

      Stock-based compensation

 

12,598

 

(2,464)

      Goodwill impairment

 

-

 

1,525,332

      Asset impairment and restructuring

 

22,341

 

1,014,934

      Employee benefit plans, net

 

29,481

 

36,916

      Loss on early extinguishment of debt

 

33,197

 

-

      Deferred income taxes

 

(167,320)

 

(496,054)

      Other, net

 

(9,098)

 

2,786

   Changes in operating assets and liabilities:

       

      Trade accounts receivable, net

 

31,672

 

107,413

      Inventories, net

 

15,047

 

(11,544)

      Prepaid expenses and other current assets

 

19,418

 

169,277

      Other non-current assets

 

7,493

 

520

      Trade accounts payable

 

3,994

 

(126,389)

      Accrued expenses and other current liabilities

 

14,422

 

(275,141)

      Pension and postretirement medical benefit obligations

 

(26,783)

 

(24,220)

      Asset retirement obligations

 

(20,352)

 

(22,287)

      Other non-current liabilities

 

(110,976)

 

(15,888)

Net cash provided by operating activities

 

67,496

 

135,349

         

Investing activities:

       

   Capital expenditures

 

(107,006)

 

(245,244)

   Acquisition of mineral rights under federal leases

 

-

 

(36,108)

   Purchases of marketable securities

 

(469,443)

 

(261,990)

   Sales of marketable securities

 

296,062

 

109,288

   Purchase of equity-method investments

 

-

 

(10,100)

   Other, net

 

5,150

 

5,973

Net cash used in investing activities

 

(275,237)

 

(438,181)

         

Financing activities:

       

   Proceeds from borrowings on long-term debt

 

964,369

 

-

   Principal repayments of long-term debt

 

(940,927)

 

(15,000)

   Principal repayments of capital lease obligations 

 

(7,989)

 

(1,767)

   Debt issuance costs

 

(24,236)

 

(6,436)

   Common stock repurchases

 

(1,236)

 

(6,804)

   Other

 

(1,000)

 

(851)

Net cash used in financing activities

 

(11,019)

 

(30,858)

         

Net decrease in cash and cash equivalents

$

(218,760)

$

(333,690)

Cash and cash equivalents at beginning of period

$

730,723

$

585,882

Cash and cash equivalents at end of period

$

511,963

$

252,192

         

This information is intended to be reviewed in conjunction with the company's filings with the U. S. Securities and
Exchange Commission.

 

 

SOURCE Alpha Natural Resources, Inc.

News Provided by Acquire Media

 

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