ST. LOUIS, April 29, 2020 /PRNewswire/ -- Peabody (NYSE:
BTU) today announced its first quarter 2020 operating results,
including revenues of $846.2 million;
loss from continuing operations, net of income taxes of
$129.3 million; net loss attributable
to common stockholders of $129.7
million; diluted loss per share from continuing operations
of $1.31; and Adjusted
EBITDA1 of $36.8
million.
"During this time of great global concern and economic
uncertainty, we are continually working to safeguard our people,
communities and business as we pursue actions to confront near-term
headwinds and best position our company for the future," said
President and Chief Executive Officer Glenn
Kellow. "In recent months, we have taken aggressive actions
to improve our cost structure, and are now expediting a detailed
mine-by-mine analysis to structurally improve our operating
portfolio with accountability for performance targets extending
from individual sites to the board level. Our Peabody people
will drive our success, and I continue to be impressed and grateful
for their ability to quickly adapt to change and confront
challenges head on."
___________________________
|
1 Adjusted EBITDA, Free Cash Flow and
Net Debt are non-GAAP financial measures. Revenues per ton,
costs per ton, Adjusted EBITDA margin per ton and percent are
non-GAAP operating/statistical measures. Adjusted EBITDA
margin is equal to segment Adjusted EBITDA divided by segment
revenues. Please refer to the tables and related notes in
this press release for a reconciliation and definition of non-GAAP
financial measures.
|
First Quarter 2020 Results
First quarter 2020 revenues totaled $846.2 million compared to $1.25 billion in the prior year, reflecting the
impact of lower volumes, largely due to the closure of the
Kayenta Mine and challenged U.S. industry conditions, as well as
lower pricing.
Depreciation, depletion, and amortization (DD&A) declined 39
percent from the prior year to $106.0
million, primarily due to the Kayenta Mine closure, roll-off
of contract amortization expense and lower volumes.
Selling and administrative expenses improved 32 percent from the
prior year to $24.9 million,
reflecting the benefits of actions taken to date as well as reduced
share-based incentive compensation expense.
In line with Peabody's continual evaluation of its portfolio for
value-creation opportunities, the company sold minor surplus
undeveloped Australian land tenements, contributing to an
$8.1 million gain on disposals in the
quarter.
As expected, first quarter Adjusted EBITDA of $36.8 million reflected the impact of lower
realized pricing and significantly higher seaborne metallurgical
costs relative to the fourth quarter of 2019.
Segment Performance
In the first quarter, the seaborne thermal segment exported 2.6
million tons at an average realized price of $61.84 per short ton, with the remaining 2.0
million tons delivered under a long-term domestic contract.
First quarter shipments were in line with the prior year.
Seaborne thermal segment costs per ton of $32.03 improved 9 percent compared to the prior
year, even with the impacts of wet weather in the first quarter of
2020. Peabody's continued solid cost performance from its
seaborne thermal segment underpins the competitiveness of this
platform in nearly any pricing environment. Even with
benchmark NEWC pricing averaging $68
per tonne in the quarter, Peabody's seaborne thermal platform
delivered 27 percent Adjusted EBITDA margins.
The seaborne metallurgical segment sold 2.0 million tons at an
average realized price of $95.65 per
short ton, drawing down inventory by approximately 800,000
tons. As expected, elevated costs per ton of $111.82 reflect the impacts of an extended
longwall move at Metropolitan, mine sequencing at Moorvale and the
beginning of the upgrade project for the main line conveyor system
at Shoal Creek. Beginning Jan. 1,
2020, North Goonyella holding costs have been excluded from
the seaborne metallurgical segment and are now included within
'Other Operating Costs, Net.'
Peabody's Powder River Basin shipments totaled 23.5 million tons
in the quarter, reflecting challenging U.S. conditions, including
overall weak electricity generation and historically low natural
gas prices. PRB costs per ton increased 4 percent compared to the
prior year, primarily due to pit sequencing and an increase in the
federal coal excise tax, partly offset by lower diesel fuel pricing
and favorable mix.
Peabody consolidated the former Midwestern and Western segments
into 'Other U.S. Thermal' for purposes of segment reporting in
2020. The Other U.S. Thermal segment shipped 4.9 million
tons, earning 20 percent Adjusted EBITDA margins in the first
quarter of 2020. Compared to the prior year, costs per ton
decreased 4 percent, largely due to lower repairs and maintenance
spend and favorable diesel fuel pricing. Lower Other U.S.
Thermal Adjusted EBITDA reflects the impact of the Kayenta Mine
closure, which contributed approximately $29
million of Adjusted EBITDA in the first quarter of
2019.
Balance Sheet and Cash Flow
In the first quarter, Peabody used $4.7
million of cash for operating activities and $31.3 million for capital expenditures.
Cash and cash equivalents at quarter end totaled $682.5 million with total liquidity of
$1.19 billion. Peabody had Net
Debt of $624.4 million as of
March 31, 2020.
COVID-19 Action
Within the global coal industry, supply and demand disruptions
have been widespread as the COVID-19 pandemic continues to force
country-wide shutdowns and regional restrictions. While recovery in
China is occurring as major
manufacturing recommences and stimulus programs are supporting the
resumption of major infrastructure projects, thermal demand from
non-power sectors remains weak. At the same time,
Japan and India – hubs for seaborne coal demand – have
shut down non-essential services and reduced steel production and
electricity generation. Coal demand in the U.S., which has
already been challenged by historically low natural gas prices and
high inventory levels, has been further pressured by the effects of
the pandemic, including weak total electric power sector
consumption, depressed power prices, and reduced industrial
activity. Average first quarter 2020 Henry Hub natural gas
prices marked their lowest level in 21 years.
In addition to demand impacts, supply risks continue to emerge.
A number of global and domestic producers have curtailed or
suspended production due to precautionary measures, elevated coal
stocks and high levels of workforce absenteeism.
Coal mining in the U.S. and Australia has been designated as an essential
business to support coal-fueled electric power generation and
critical steelmaking needs. As part of Peabody's commitment
to the ongoing health and safety of our employees, vendors, and
communities, the company is following advice from government
authorities and taking precautions to manage the spread of
COVID-19. Peabody operations have implemented rigorous protocols,
controls, and prevention measures, including mandatory temperature
and health screenings; paid COVID-19 leave based on established
guidance; enhanced cleaning and sterilization practices; expanded
use of personal protective equipment; remote work where possible;
and social distancing. While the company's operations have
been designated as essential, each operation will only continue to
operate when it safe and economic to do so.
Peabody has also taken actions to mitigate its financial risk
given the uncertainty in global markets caused by the COVID-19
pandemic. The company previously suspended payment of
dividends and share repurchase activities, and during the first
quarter, made the decision to pause debt reduction activities in
light of evolving industry conditions. In April, the company
borrowed $300 million under its
$565 million revolving credit
facility to enhance the company's financial flexibility.
Key Business Updates
North Goonyella – Peabody has commenced the
previously announced commercial process to maximize value and
accelerate cash flows at North Goonyella, which offers 82 million
tons of proven and probable hard coking coal reserves and a fully
operational preparation plant. In April, Peabody successfully
entered into commercial agreements to reduce rail and port
commitments for the asset beginning mid-year 2020, while
maintaining sufficient rail and port capacity for when the mine
resumes operation. As a result, holding costs have been
reduced by approximately 85 percent to $5
million per quarter, beginning in the third quarter of 2020.
The company continues to closely monitor market conditions
and the status of the commercial process to determine any
incremental spending related to ventilation and re-entry of Zone
B.
PRB/Colorado Joint Venture – In February, the U.S.
Federal Trade Commission (FTC), in a split decision, challenged the
company's proposed joint venture with Arch. Peabody and Arch
intend to continue to pursue creation of the accretive joint
venture and will contest the FTC's decision within the U.S. federal
court system. Peabody believes the FTC has incorrectly
defined the market and failed to reflect the true competitive
nature of the current U.S. energy landscape. Court
proceedings are currently scheduled to begin in late June with a
ruling expected shortly after the hearing concludes, subject to any
additional changes to the court's schedule.
SG&A Savings – In the second half of
2019, the company identified $50
million of cost savings, including lower SG&A as well as
procurement savings that benefit operating costs, which are being
implemented throughout the year.
During the first quarter, Peabody took additional actions,
eliminating approximately 105 global corporate and support
positions. These actions are anticipated to result in a
further $20 million in annualized
cost savings, with about $15 million
of savings to be realized this year. Approximately half of
the savings will benefit SG&A. Over the past two
quarters, Peabody has improved efficiencies and lowered costs by
reducing its global corporate and support functional headcount by
one-third.
Amplified Improvement Activities – Peabody is also taking
structural, aggressive actions, beyond SG&A savings, to protect
and improve the business. With oversight by the company's
board of directors, the company has advanced a program to
supercharge multiple initiatives underway, including a detailed
mine-by-mine analysis to improve operating capabilities. The
company's initial focus will be on the highest-value opportunities,
and mines that cannot demonstrate a path to cash generation at
lower pricing levels will be suspended.
Early actions stemming from this comprehensive program include
the elimination of approximately 250 positions in April in the PRB,
Indiana and Illinois to better scale staffing requirements
to meet customer demand. This follows the reduction of
approximately 215 operational positions, including contractors, in
the first quarter across eight mines in the U.S. and Australia to align with industry
conditions.
Outlook
Given uncertainties with respect to COVID-19, including the
duration, severity, scope, and necessary government actions to
limit the spread, Peabody has decided to suspend full-year 2020
guidance.
Within its seaborne metallurgical segment, the Company is
proceeding with the main line conveyor system upgrade at Shoal
Creek and has recently resumed mining at Metropolitan following a
longwall move in the first quarter. Coppabella is currently
mining through a lower-ratio pit, which is anticipated to mitigate
increased costs associated with a major dragline repair slated for
the second quarter.
Within its seaborne thermal segment, Peabody currently has 3.2
million short tons of export thermal coal priced for the remainder
of the year.
In the U.S., Peabody's contractual sales agreements include a
blend of fixed volume commitments, as well as requirements and
options contracts that allow customers to have some volume
flexibility. Based on current customer nominations, Peabody
now has 88 million tons of PRB coal priced and 19 million tons of
other U.S. thermal coal priced for delivery in 2020.
Ultimately, deliveries will be dependent on general economic
conditions, weather, natural gas prices and other factors.
Peabody continues to closely monitor volumes and is aggressively
protecting its contractual rights.
Based on actions to date, 2020 SG&A has been reduced to
approximately $120 million.
Capital expenditures have been reduced to approximately $235
million and are focused on sustaining and compliance activities,
joint venture commitments or mid-stream projects with rapid cash
paybacks. ARO cash spend has also been reduced to
approximately $60 million for
2020.
Peabody expects to realize lower fuel prices and Australian
dollar exchange rates. Peabody also plans to accelerate the
collection of its remaining alternative minimum tax refund of
approximately $24 million to 2020 and
to defer approximately $18 million of
2020 employer FICA tax payments to 2020 and 2021 under the CARES
Act.
Today's earnings call is scheduled for 10
a.m. CDT and will be accompanied by a presentation available
at PeabodyEnergy.com.
Peabody (NYSE: BTU) is a leading coal producer, serving
customers in more than 25 countries on six continents. We
provide essential products to fuel baseload electricity for
emerging and developed countries and create the steel needed to
build foundational infrastructure. Our commitment to sustainability
underpins our activities today and helps to shape our strategy for
the future. For further information, visit
PeabodyEnergy.com.
Contact:
Julie
Gates
314.342.4336
Condensed
Consolidated Statements of Operations (Unaudited)
|
|
For the Quarters
Ended Mar. 31, 2020 and 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
(In Millions, Except
Per Share Data)
|
|
|
|
|
|
Quarter
Ended
|
|
|
Mar.
|
|
Mar.
|
|
|
2020
|
|
2019
|
|
|
|
|
|
Tons Sold
|
35.6
|
|
|
40.5
|
|
|
|
|
|
|
Revenues
|
$
|
846.2
|
|
|
$
|
1,250.6
|
|
Operating Costs and
Expenses (1)
|
779.5
|
|
|
948.2
|
|
Depreciation,
Depletion and Amortization
|
106.0
|
|
|
172.5
|
|
Asset Retirement
Obligation Expenses
|
17.6
|
|
|
13.8
|
|
Selling and
Administrative Expenses
|
24.9
|
|
|
36.7
|
|
Restructuring
Charges
|
6.5
|
|
|
0.2
|
|
Transaction Costs
Related to Joint Ventures
|
4.2
|
|
|
—
|
|
Other Operating
(Income) Loss:
|
|
|
|
Net Gain on
Disposals
|
(8.1)
|
|
|
(1.5)
|
|
Provision for North
Goonyella Equipment Loss
|
—
|
|
|
24.7
|
|
North Goonyella
Insurance Recovery
|
—
|
|
|
(125.0)
|
|
Loss (Income) from
Equity Affiliates
|
9.1
|
|
|
(3.5)
|
|
Operating (Loss)
Profit
|
(93.5)
|
|
|
184.5
|
|
Interest
Expense
|
33.1
|
|
|
35.8
|
|
Interest
Income
|
(3.1)
|
|
|
(8.3)
|
|
Net Periodic Benefit
Costs, Excluding Service Cost
|
2.8
|
|
|
4.9
|
|
(Loss) Income from
Continuing Operations Before Income Taxes
|
(126.3)
|
|
|
152.1
|
|
Income Tax
Provision
|
3.0
|
|
|
18.8
|
|
(Loss) Income from
Continuing Operations, Net of Income Taxes
|
(129.3)
|
|
|
133.3
|
|
Loss from
Discontinued Operations, Net of Income Taxes
|
(2.2)
|
|
|
(3.4)
|
|
Net (Loss)
Income
|
(131.5)
|
|
|
129.9
|
|
Less: Net (Loss)
Income Attributable to Noncontrolling Interests
|
(1.8)
|
|
|
5.7
|
|
Net (Loss) Income
Attributable to Common Stockholders
|
$
|
(129.7)
|
|
|
$
|
124.2
|
|
|
|
|
|
|
Adjusted EBITDA
(2)
|
$
|
36.8
|
|
|
$
|
254.1
|
|
|
|
|
|
Diluted EPS - (Loss)
Income from Continuing Operations (3)(4)
|
$
|
(1.31)
|
|
|
$
|
1.15
|
|
|
|
|
|
|
Diluted EPS - Net
(Loss) Income Attributable to Common Stockholders
(3)
|
$
|
(1.33)
|
|
|
$
|
1.12
|
|
|
|
|
|
|
(1)
|
Excludes items shown
separately.
|
|
|
(2)
|
Adjusted EBITDA is a
non-GAAP financial measure. Refer to the "Reconciliation of
Non-GAAP Financial Measures" section in this document for
definitions and reconciliations to the most comparable measures
under U.S. GAAP.
|
|
|
(3)
|
During the quarters
ended March 31, 2020 and 2019, weighted average diluted shares
outstanding were 97.2 million and 110.5 million,
respectively.
|
|
|
(4)
|
Reflects (loss)
income from continuing operations, net of income taxes less net
income attributable to noncontrolling interests.
|
|
|
|
|
|
This information
is intended to be reviewed in conjunction with the company's
filings with the SEC.
|
Supplemental
Financial Data (Unaudited)
|
|
For the Quarters
Ended Mar. 31, 2020 and 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
|
Mar.
|
|
Mar.
|
|
|
2020
|
|
2019
|
Tons Sold (In
Millions)
|
|
|
|
Seaborne Thermal
Mining Operations
|
4.6
|
|
|
4.5
|
|
Seaborne
Metallurgical Mining Operations
|
2.0
|
|
|
2.3
|
|
Powder River Basin
Mining Operations
|
23.5
|
|
|
25.3
|
|
Other U.S. Thermal
Mining Operations (1)
|
4.9
|
|
|
7.9
|
|
Total U.S. Thermal
Mining Operations
|
28.4
|
|
|
33.2
|
|
Corporate and Other
|
0.6
|
|
|
0.5
|
|
Total
|
35.6
|
|
|
40.5
|
|
|
|
|
|
|
Revenue Summary (In
Millions)
|
|
|
|
Seaborne Thermal
Mining Operations
|
$
|
201.1
|
|
|
$
|
251.0
|
|
Seaborne
Metallurgical Mining Operations
|
193.2
|
|
|
324.5
|
|
Powder River Basin
Mining Operations
|
266.6
|
|
|
287.3
|
|
Other U.S. Thermal
Mining Operations (1)
|
192.3
|
|
|
334.8
|
|
Total U.S. Thermal
Mining Operations
|
458.9
|
|
|
622.1
|
|
Corporate and
Other
|
(7.0)
|
|
|
53.0
|
|
Total
|
$
|
846.2
|
|
|
$
|
1,250.6
|
|
|
|
|
|
|
Total Reporting
Segment Costs Summary (In Millions) (2)
|
|
|
|
Seaborne Thermal
Mining Operations
|
$
|
146.0
|
|
|
$
|
156.3
|
|
Seaborne
Metallurgical Mining Operations
|
225.9
|
|
|
238.7
|
|
North Goonyella
Equipment & Development Costs (3)
|
—
|
|
|
3.0
|
|
Seaborne
Metallurgical Mining Operations, Excluding North Goonyella
Equipment & Development Costs
|
225.9
|
|
|
235.7
|
|
Powder River Basin
Mining Operations
|
241.2
|
|
|
250.9
|
|
Other U.S. Thermal
Mining Operations (1)
|
153.8
|
|
|
258.9
|
|
Total U.S. Thermal
Mining Operations
|
395.0
|
|
|
509.8
|
|
Corporate and
Other
|
18.1
|
|
|
20.2
|
|
Total
|
$
|
785.0
|
|
|
$
|
925.0
|
|
|
|
|
|
|
Other Supplemental
Financial Data (In Millions)
|
|
|
|
Adjusted EBITDA -
Seaborne Thermal Mining Operations
|
$
|
55.1
|
|
|
$
|
94.7
|
|
Adjusted EBITDA -
Seaborne Metallurgical Mining Operations
|
(32.7)
|
|
|
85.8
|
|
North Goonyella
Equipment & Development Costs (3)
|
—
|
|
|
3.0
|
|
Adjusted EBITDA -
Seaborne Metallurgical Mining Operations, Excluding North Goonyella
Equipment & Development Costs
|
(32.7)
|
|
|
88.8
|
|
Adjusted EBITDA -
Powder River Basin Mining Operations
|
25.4
|
|
|
36.4
|
|
Adjusted EBITDA -
Other U.S. Thermal Mining Operations (1)
|
38.5
|
|
|
75.9
|
|
Adjusted EBITDA -
Total U.S. Thermal Mining Operations
|
63.9
|
|
|
112.3
|
|
Middlemount
(4)
|
(9.7)
|
|
|
3.9
|
|
Resource Management
Results (5)
|
8.0
|
|
|
2.0
|
|
Selling and
Administrative Expenses
|
(24.9)
|
|
|
(36.7)
|
|
Other Operating
Costs, Net (6)
|
(22.9)
|
|
|
(7.9)
|
|
Adjusted EBITDA
(2)
|
$
|
36.8
|
|
|
$
|
254.1
|
|
|
Note:
See footnote explanations on following page
|
|
|
|
|
|
Supplemental
Financial Data (Unaudited)
|
|
For the Quarters
Ended Mar. 31, 2020 and 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
|
Mar.
|
|
Mar.
|
|
|
2020
|
|
2019
|
Revenues per Ton -
Mining Operations (7)
|
|
|
|
Seaborne
Thermal
|
$
|
44.10
|
|
|
$
|
56.24
|
|
Seaborne
Metallurgical
|
95.65
|
|
|
142.33
|
|
Powder River
Basin
|
11.36
|
|
|
11.35
|
|
Other U.S. Thermal
(1)
|
39.25
|
|
|
42.21
|
|
Total U.S.
Thermal
|
16.18
|
|
|
18.71
|
|
|
|
|
|
|
Costs per Ton -
Mining Operations (7)(8)
|
|
|
|
Seaborne
Thermal
|
$
|
32.03
|
|
|
$
|
35.03
|
|
Seaborne
Metallurgical
|
111.82
|
|
|
104.69
|
|
North Goonyella
Equipment & Development Costs (3)
|
—
|
|
|
1.32
|
|
Seaborne
Metallurgical, Excluding North Goonyella Equipment &
Development Costs
|
111.82
|
|
|
103.37
|
|
Powder River
Basin
|
10.28
|
|
|
9.91
|
|
Other U.S. Thermal
(1)
|
31.39
|
|
|
32.65
|
|
Total U.S.
Thermal
|
13.93
|
|
|
15.33
|
|
|
|
|
|
|
Adjusted EBITDA
Margin per Ton - Mining Operations (7)(8)
|
|
|
|
Seaborne
Thermal
|
$
|
12.07
|
|
|
$
|
21.21
|
|
Seaborne
Metallurgical
|
(16.17)
|
|
|
37.64
|
|
North Goonyella
Equipment & Development Costs (3)
|
—
|
|
|
1.32
|
|
Seaborne
Metallurgical, Excluding North Goonyella Equipment &
Development Costs
|
(16.17)
|
|
|
38.96
|
|
Powder River
Basin
|
1.08
|
|
|
1.44
|
|
Other U.S. Thermal
(1)
|
7.86
|
|
|
9.56
|
|
Total U.S.
Thermal
|
2.25
|
|
|
3.38
|
|
|
|
|
|
|
(1)
|
Beginning Q1 2020, we
have combined the Midwestern U.S. Mining segment with the
Western U.S. Mining segment to reflect the manner in which our
chief operating decision maker now views our businesses for
purposes of reviewing performance, allocating resources and
assessing future prospects and strategic execution. All periods
presented have been recast for comparability.
|
|
|
(2)
|
Total Reporting
Segment Costs and Adjusted EBITDA are non-GAAP financial measures.
Refer to the "Reconciliation of Non-GAAP Financial Measures"
section in this document for definitions and reconciliations to the
most comparable measures under U.S. GAAP.
|
|
|
(3)
|
Costs incurred from
January 1, 2020 forward are included within Other Operating
Costs, Net. Costs incurred prior to January 1, 2020 remain
within the Seaborne Metallurgical segment.
|
|
|
(4)
|
We account for our
50% equity interest in Middlemount Coal Pty Ltd. (Middlemount),
which owns the Middlemount Mine, under the equity method.
Middlemount's standalone results exclude the impact of related
changes in deferred tax asset valuation allowance and reserves and
amortization of basis difference recorded by the company in
applying the equity method. Middlemount's standalone results
include (on a 50% attributable basis):
|
|
|
Quarter
Ended
|
|
|
Mar.
|
|
Mar.
|
|
|
2020
|
|
2019
|
|
|
(In
Millions)
|
|
Tons sold
|
0.5
|
|
|
0.4
|
|
|
Depreciation,
depletion and amortization and asset retirement obligation
expenses
|
5.9
|
|
|
3.6
|
|
|
Net interest
expense
|
2.7
|
|
|
2.2
|
|
|
Income tax (benefit)
provision
|
(4.2)
|
|
|
1.7
|
|
|
|
|
|
|
|
|
(5)
|
Includes gains
(losses) on certain surplus coal reserve and surface land sales and
property management costs and revenues.
|
|
|
(6)
|
Includes trading and
brokerage activities, costs associated with post-mining activities,
minimum charges on certain transportation-related contracts and
costs associated with suspended operations including the North
Goonyella Mine.
|
|
|
(7)
|
Revenues per Ton,
Costs per Ton and Adjusted EBITDA Margin per Ton are metrics used
by management to measure each of our mining segment's operating
performance. Revenues per Ton and Adjusted EBITDA Margin per Ton
are equal to revenues by segment and Adjusted EBITDA by segment,
respectively, divided by segment tons sold. Costs per Ton is equal
to Revenues per Ton less Adjusted EBITDA Margin per Ton. Management
believes Costs per Ton and Adjusted EBITDA Margin per Ton best
reflect controllable costs and operating results at the mining
segment level. We consider all measures reported on a per ton basis
to be operating/statistical measures; however, we include
reconciliations of the related non-GAAP financial measures
(Adjusted EBITDA and Total Reporting Segment Costs) in the
"Reconciliation of Non-GAAP Financial Measures" section in this
document.
|
|
|
(8)
|
Includes
revenue-based production taxes and royalties; excludes
depreciation, depletion and amortization; asset retirement
obligation expenses; selling and administrative expenses;
restructuring charges; asset impairment; provision for North
Goonyella equipment loss and related insurance recovery;
amortization of take-or-pay contract-based intangibles; and certain
other costs related to post-mining activities.
|
|
This information
is intended to be reviewed in conjunction with the company's
filings with the SEC.
|
Condensed
Consolidated Balance Sheets
|
|
As of Mar. 31,
2020 and Dec. 31, 2019
|
|
|
|
|
|
(Dollars In
Millions)
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
Mar. 31,
2020
|
|
Dec. 31,
2019
|
|
|
|
Cash and Cash
Equivalents
|
$
|
682.5
|
|
|
$
|
732.2
|
|
Accounts Receivable,
Net
|
265.2
|
|
|
329.5
|
|
Inventories
|
269.2
|
|
|
331.5
|
|
Other Current
Assets
|
202.3
|
|
|
220.7
|
|
Total Current
Assets
|
1,419.2
|
|
|
1,613.9
|
|
Property, Plant,
Equipment and Mine Development, Net
|
4,607.8
|
|
|
4,679.1
|
|
Operating Lease
Right-of-Use Assets
|
78.0
|
|
|
82.4
|
|
Investments and Other
Assets
|
120.5
|
|
|
139.1
|
|
Deferred Income
Taxes
|
4.9
|
|
|
28.3
|
|
Total
Assets
|
$
|
6,230.4
|
|
|
$
|
6,542.8
|
|
|
|
|
|
|
Current Portion of
Long-Term Debt
|
$
|
12.6
|
|
|
$
|
18.3
|
|
Accounts Payable and
Accrued Expenses
|
793.4
|
|
|
957.0
|
|
Total Current
Liabilities
|
806.0
|
|
|
975.3
|
|
Long-Term Debt, Less
Current Portion
|
1,294.3
|
|
|
1,292.5
|
|
Deferred Income
Taxes
|
25.5
|
|
|
28.8
|
|
Asset Retirement
Obligations
|
666.6
|
|
|
654.1
|
|
Accrued
Postretirement Benefit Costs
|
587.7
|
|
|
593.4
|
|
Operating Lease
Liabilities, Less Current Portion
|
44.5
|
|
|
52.8
|
|
Other Noncurrent
Liabilities
|
272.5
|
|
|
273.4
|
|
Total
Liabilities
|
3,697.1
|
|
|
3,870.3
|
|
|
|
|
|
|
Common
Stock
|
1.4
|
|
|
1.4
|
|
Additional Paid-in
Capital
|
3,353.3
|
|
|
3,351.1
|
|
Treasury
Stock
|
(1,368.1)
|
|
|
(1,367.3)
|
|
Retained
Earnings
|
467.3
|
|
|
597.0
|
|
Accumulated Other
Comprehensive Income
|
22.6
|
|
|
31.6
|
|
Peabody Energy
Corporation Stockholders' Equity
|
2,476.5
|
|
|
2,613.8
|
|
Noncontrolling
Interests
|
56.8
|
|
|
58.7
|
|
Total Stockholders'
Equity
|
2,533.3
|
|
|
2,672.5
|
|
Total Liabilities and
Stockholders' Equity
|
$
|
6,230.4
|
|
|
$
|
6,542.8
|
|
|
|
|
|
|
This information
is intended to be reviewed in conjunction with the company's
filings with the SEC.
|
Condensed
Consolidated Statements of Cash Flows (Unaudited)
|
|
For the Quarters
Ended Mar. 31, 2020 and 2019
|
|
|
|
|
(Dollars In
Millions)
|
|
|
|
|
Quarter
Ended
|
|
Mar.
|
|
Mar.
|
|
2020
|
|
2019
|
Cash Flows From
Operating Activities
|
|
|
|
Net Cash (Used In)
Provided By Continuing Operations
|
$
|
(1.6)
|
|
|
$
|
200.8
|
|
Net Cash Used in
Discontinued Operations
|
(3.1)
|
|
|
(3.2)
|
|
Net Cash (Used In)
Provided By Operating Activities
|
(4.7)
|
|
|
197.6
|
|
Cash Flows From
Investing Activities
|
|
|
|
Additions to
Property, Plant, Equipment and Mine Development
|
(31.3)
|
|
|
(35.8)
|
|
Changes in Accrued
Expenses Related to Capital Expenditures
|
(11.4)
|
|
|
(3.8)
|
|
Proceeds from
Disposal of Assets, Net of Receivables
|
10.5
|
|
|
11.0
|
|
Amount Attributable
to Acquisition of Shoal Creek Mine
|
—
|
|
|
(2.4)
|
|
Contributions to
Joint Ventures
|
(96.3)
|
|
|
(118.4)
|
|
Distributions from
Joint Ventures
|
98.4
|
|
|
110.9
|
|
Advances to Related
Parties
|
(6.9)
|
|
|
(1.5)
|
|
Cash Receipts from
Middlemount Coal Pty Ltd
|
—
|
|
|
1.1
|
|
Other, Net
|
(0.1)
|
|
|
0.8
|
|
Net Cash Used In
Investing Activities
|
(37.1)
|
|
|
(38.1)
|
|
Cash Flows From
Financing Activities
|
|
|
|
Repayments of
Long-Term Debt
|
(7.2)
|
|
|
(8.3)
|
|
Common Stock
Repurchases
|
—
|
|
|
(98.8)
|
|
Repurchase of
Employee Common Stock Relinquished for Tax Withholding
|
(0.8)
|
|
|
(1.4)
|
|
Dividends
Paid
|
—
|
|
|
(214.4)
|
|
Distributions to
Noncontrolling Interests
|
(0.1)
|
|
|
(14.3)
|
|
Other, Net
|
0.2
|
|
|
(0.1)
|
|
Net Cash Used In
Financing Activities
|
(7.9)
|
|
|
(337.3)
|
|
Net Change in
Cash, Cash Equivalents and Restricted Cash
|
(49.7)
|
|
|
(177.8)
|
|
Cash, Cash
Equivalents and Restricted Cash at Beginning of
Period
|
732.2
|
|
|
1,017.4
|
|
Cash, Cash
Equivalents and Restricted Cash at End of Period
|
$
|
682.5
|
|
|
$
|
839.6
|
|
|
|
|
|
This information
is intended to be reviewed in conjunction with the company's
filings with the SEC.
|
Reconciliation of
Non-GAAP Financial Measures (Unaudited)
|
|
For the Quarters
Ended Mar. 31, 2020 and 2019
|
|
|
|
|
|
(Dollars In
Millions)
|
|
|
|
|
|
|
|
|
Note:
Management believes that non-GAAP performance measures are used by
investors to measure our operating performance and lenders to
measure our ability to incur and service debt. These measures are
not intended to serve as alternatives to U.S. GAAP measures of
performance and may not be comparable to similarly-titled measures
presented by other companies.
|
|
|
|
|
|
Quarter
Ended
|
|
|
Mar.
|
|
Mar.
|
|
|
2020
|
|
2019
|
|
|
|
|
|
(Loss) Income from
Continuing Operations, Net of Income Taxes
|
$
|
(129.3)
|
|
|
$
|
133.3
|
|
|
Depreciation,
Depletion and Amortization
|
106.0
|
|
|
172.5
|
|
|
Asset Retirement
Obligation Expenses
|
17.6
|
|
|
13.8
|
|
|
Restructuring
Charges
|
6.5
|
|
|
0.2
|
|
|
Transaction Costs
Related to Joint Ventures
|
4.2
|
|
|
—
|
|
|
Provision for North
Goonyella Equipment Loss
|
—
|
|
|
24.7
|
|
|
North Goonyella
Insurance Recovery - Equipment (1)
|
—
|
|
|
(91.1)
|
|
|
Changes in Deferred
Tax Asset Valuation Allowance and Reserves and Amortization of
Basis Difference Related to Equity Affiliates
|
(0.7)
|
|
|
—
|
|
|
Interest
Expense
|
33.1
|
|
|
35.8
|
|
|
Interest
Income
|
(3.1)
|
|
|
(8.3)
|
|
|
Unrealized Losses
(Gains) on Economic Hedges
|
2.2
|
|
|
(39.8)
|
|
|
Unrealized Gains on
Non-Coal Trading Derivative Contracts
|
(0.1)
|
|
|
(0.2)
|
|
|
Take-or-Pay
Contract-Based Intangible Recognition
|
(2.6)
|
|
|
(5.6)
|
|
|
Income Tax
Provision
|
3.0
|
|
|
18.8
|
|
|
|
|
|
|
Adjusted EBITDA
(2)
|
$
|
36.8
|
|
|
$
|
254.1
|
|
|
|
|
|
|
Operating Costs and
Expenses
|
$
|
779.5
|
|
|
$
|
948.2
|
|
|
Unrealized Gains on
Non-Coal Trading Derivative Contracts
|
0.1
|
|
|
0.2
|
|
|
Take-or-Pay
Contract-Based Intangible Recognition
|
2.6
|
|
|
5.6
|
|
|
North Goonyella
Insurance Recovery - Cost Recovery and Business Interruption
(1)
|
—
|
|
|
(33.9)
|
|
|
Net Periodic Benefit
Costs, Excluding Service Cost
|
2.8
|
|
|
4.9
|
|
|
|
|
|
|
Total Reporting
Segment Costs (3)
|
$
|
785.0
|
|
|
$
|
925.0
|
|
|
|
|
|
|
Net Cash (Used In)
Provided By Operating Activities
|
$
|
(4.7)
|
|
|
$
|
197.6
|
|
Net Cash Used In
Investing Activities
|
(37.1)
|
|
|
(38.1)
|
|
|
Add Back: Amount
Attributable to Acquisition of Shoal Creek Mine
|
—
|
|
|
2.4
|
|
|
|
|
|
|
Free Cash Flow
(4)
|
$
|
(41.8)
|
|
|
$
|
161.9
|
|
|
|
|
|
|
(1)
|
We recorded a $125.0
million insurance recovery during the quarter ended March 31, 2019
related to losses incurred at our North Goonyella Mine. Of this
amount, Adjusted EBITDA excludes an allocated amount applicable to
total equipment losses recognized at the time of the insurance
recovery settlement, which consisted of $24.7 million and $66.4
million recognized during the quarter ended March 31, 2019 and the
year ended December 31, 2018, respectively. The remaining
$33.9 million, applicable to incremental costs and business
interruption losses, is included in Adjusted EBITDA for the quarter
ended March 31, 2019.
|
|
|
(2)
|
Adjusted EBITDA is
defined as (loss) income from continuing operations before
deducting net interest expense, income taxes, asset retirement
obligation expenses and depreciation, depletion and amortization.
Adjusted EBITDA is also adjusted for the discrete items that
management excluded in analyzing each of our segment's operating
performance as displayed in the reconciliation above. Adjusted
EBITDA is used by management as the primary metric to measure each
of our segment's operating performance. We have retrospectively
modified our calculation of Adjusted EBITDA to exclude
restructuring charges and transaction costs related to joint
ventures as management does not view these items as part of our
normal operations.
|
|
|
(3)
|
Total Reporting
Segment Costs is defined as operating costs and expenses adjusted
for the discrete items that management excluded in analyzing each
of our segment's operating performance as displayed in the
reconciliation above. Total Reporting Segment Costs is used by
management as a metric to measure each of our segment's operating
performance. We have retrospectively modified our calculation of
Total Reporting Segment Costs to exclude restructuring charges as
management does not view this item as part of our normal
operations.
|
|
|
(4)
|
Free Cash Flow is
defined as net cash (used in) provided by operating activities less
net cash used in investing activities and excludes cash outflows
related to business combinations. Free Cash Flow is used by
management as a measure of our financial performance and our
ability to generate excess cash flow from our business
operations.
|
|
|
|
|
|
This information
is intended to be reviewed in conjunction with the company's
filings with the SEC.
|
Reconciliation of
Non-GAAP Financial Measures (Unaudited)
|
|
As of Mar. 31,
2020 and Dec. 31, 2019
|
|
|
|
|
|
(Dollars In
Millions)
|
|
|
|
|
|
|
|
|
Note:
Management believes that non-GAAP performance measures are used by
investors to measure our operating performance and lenders to
measure our ability to incur and service debt. These measures are
not intended to serve as alternatives to U.S. GAAP measures of
performance and may not be comparable to similarly-titled measures
presented by other companies.
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
Mar. 31,
2020
|
|
Dec. 31,
2019
|
|
|
|
|
|
Current Portion of
Long-Term Debt
|
$
|
12.6
|
|
|
$
|
18.3
|
|
Long-Term Debt, Less
Current Portion
|
1,294.3
|
|
|
1,292.5
|
|
|
Less: Cash and Cash
Equivalents
|
(682.5)
|
|
|
(732.2)
|
|
|
|
|
|
|
Net Debt
(1)
|
$
|
624.4
|
|
|
$
|
578.6
|
|
|
|
|
|
|
(1)
|
Net Debt is defined
as current portion of long-term debt plus long-term debt, less
current portion less cash and cash equivalents. Net Debt is
reviewed by management as an indicator of our overall financial
flexibility, capital structure and leverage.
|
|
|
|
|
|
This information
is intended to be reviewed in conjunction with the company's
filings with the SEC.
|
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the securities laws. Forward-looking statements can
be identified by the fact that they do not relate strictly to
historical or current facts. They often include words or variation
of words such as "expects," "anticipates," "intends," "plans,"
"believes," "seeks," "estimates," "projects," "forecasts,"
"targets," "would," "will," "should," "goal," "could" or "may" or
other similar expressions. Forward-looking statements provide
management's current expectations or predictions of future
conditions, events or results. All statements that address
operating performance, events or developments that Peabody expects
will occur in the future are forward-looking statements. They may
include estimates of revenues, income, earnings per share, cost
savings, capital expenditures, dividends, share repurchases,
liquidity, capital structure, market share, industry volume, or
other financial items, descriptions of management's plans or
objectives for future operations, or descriptions of assumptions
underlying any of the above. All forward-looking statements speak
only as of the date they are made and reflect Peabody's good faith
beliefs, assumptions and expectations, but they are not guarantees
of future performance or events. Furthermore, Peabody disclaims any
obligation to publicly update or revise any forward-looking
statement, except as required by law. By their nature,
forward-looking statements are subject to risks and uncertainties
that could cause actual results to differ materially from those
suggested by the forward-looking statements. Factors that might
cause such differences include, but are not limited to, a variety
of economic, competitive and regulatory factors, many of which are
beyond Peabody's control, including the impact of the
COVID-19 pandemic and factors that are described in Peabody's
Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2019, and other factors that Peabody may
describe from time to time in other filings with the SEC. You may
get such filings for free at Peabody's website at
www.peabodyenergy.com. You should understand that it is not
possible to predict or identify all such factors and, consequently,
you should not consider any such list to be a complete set of all
potential risks or uncertainties.
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SOURCE Peabody