ST. LOUIS, July 29, 2021 /PRNewswire/ -- Peabody (NYSE: BTU)
today announced its second quarter 2021 operating results,
including revenues of $723.4 million;
loss from continuing operations, net of income taxes of
$23.0 million; net loss attributable
to common stockholders of $28.6
million; diluted loss per share from continuing operations
of $0.26; and Adjusted
EBITDA0F1 of $122.1
million.
"We are optimistic about the future given strong coal market
demand and pricing around the globe as economies continue to
recover from the pandemic; our assets are responding to the current
market cycle and continue to benefit from cost improvement
initiatives," said Peabody President and Chief Executive Officer
Jim Grech. "The company has taken a
disciplined approach focusing on expanding margins, through ongoing
operational improvements, cost controls and sales strategies, along
with reducing debt, as we progress to position the company to be
resilient in all market cycles."
Second Quarter 2021 Financial Results
Second quarter revenues totaled $723.4
million compared to $626.7
million in the prior year primarily due to the impact of
higher volumes and improved seaborne thermal pricing.
Selling, general and administrative expenses decreased 15
percent from the prior year to $21.4
million as a result of the company's ongoing cost reduction
efforts.
Depreciation, depletion, and amortization (DD&A) declined 13
percent from the prior year to $77.1 million, primarily due to
the impairment at the North Antelope Rochelle Mine recorded in Q2
2020.
Interest expense of $45.4 million
increased $11.1 million over the
prior year due to higher borrowing costs and amortization of debt
issuance costs.
Loss from continuing operations, net of income taxes totaled
$23.0 million compared to
$1.5 billion in the prior year, or
$127.2 million excluding the
$1.4 billion non-cash impairment of
the North Antelope Rochelle Mine. Adjusted EBITDA totaled
$122.1 million compared to
$23.4 million in the prior year
primarily due to higher realized seaborne thermal pricing, higher
U.S. thermal volumes and improved costs across the platform.
Segment Performance
During the second quarter, the seaborne thermal segment shipped
4.1 million tons with exports of 2.0 million tons at an average
realized price of $73 per ton and 2.1
million tons sold under a long-term domestic contract.
Despite a year-over-year reduction in sales volumes, unfavorable
exchange rates, and higher fuel and royalty costs, seaborne thermal
segment costs of $29.61 per ton were
largely in line with the prior year reflecting the continued impact
of cost reduction initiatives and product mix. The segment
reported 37 percent Adjusted EBITDA margins and Adjusted EBITDA of
$71.4 million.
In the second quarter, Wilpinjong shipped 3.3 million tons at an
average realized price of $38 per
ton, which included 1.2 million tons of export sales at an average
realized price of $63 per ton and 2.1
million tons of domestic sales at an average price of $22 per ton. Wilpinjong costs of
$22 per ton were impacted by
unfavorable exchange rates and higher fuel and royalty costs
compared to the prior year. Operating cash flow was also
impacted by timing of shipments, higher accounts receivable and
higher inventory levels. Wilpinjong contributed approximately
$52 million of Adjusted EBITDA,
completed $7 million of capital
expenditures and had $102 million of
cash and cash equivalents as of June
30, 2021.
The seaborne met segment shipped 1.4 million tons at an average
realized price of $85.48 per short
ton in the second quarter, with Metropolitan restarting longwall
production late in the quarter. Total segment costs of
$104.24 per ton decreased 14%
compared to the prior year as productivity improvements and
increased sales volumes at the CMJV offset the impacts of
unfavorable exchange rates, ramp up costs at Metropolitan and Shoal
Creek idle costs. Seaborne met costs excluding Shoal Creek
were approximately $95 per ton,
favorable to $110 per ton in the
prior year primarily due to fleet optimization and mine sequencing
at the CMJV, which lowered costs by more than 20% to $84 per ton. The segment reported an
Adjusted EBITDA loss of $26.4
million.
The PRB segment shipped 22.5 million tons at an average realized
price of $11.06 per ton. PRB
costs per ton decreased by two percent to $9.04 as higher fuel cost impact of $0.37 per ton was more than offset by 26% higher
volumes over the prior year. The segment reported 18%
Adjusted EBITDA margins and Adjusted EBITDA of $45.5 million.
The other U.S. thermal segment shipped 3.9 million tons at an
average realized price of $40.70 per
ton. Cost per ton decreased 5 percent from the prior year to
$29.57 due to pit sequencing and
timing of longwall moves in the prior year. The segment
reported 27 percent Adjusted EBITDA margins and Adjusted EBITDA of
$44.3 million.
Balance Sheet and Cash Flow
Peabody ended the quarter with $561.9
million of cash, cash equivalents and restricted cash, a
$61.8 million reduction over the
prior quarter. The company retired approximately $84 million of debt in the quarter and reached
agreements to retire an additional $50
million that will settle after June
30, 2021.
During the quarter, the company completed multiple bilateral
debt-for-equity exchanges by issuing 4.5 million shares of common
stock in exchange for $30.9 million
of Senior Secured Notes due March 2022. The company also
retired $53 million of other senior
secured debt through open market repurchases. As a result,
Peabody recorded a net gain on debt extinguishment of $11.8 million. The current portion of
long-term debt increased by $25
million due primarily to the pending settlement of
additional debt repurchases.
For the year, the company has retired $126 million of senior secured debt, with an
additional $50 million pending
settlement after June 30, 2021.
Also, during the quarter, the company sold 8.1 million shares of
common stock under its previously announced "at-the-market" equity
offering program (ATM), raising net cash proceeds of $65.1 million. Subsequent to June 30, 2021, the company settled sales of an
additional 2.7 million shares under the program, raising net cash
proceeds of $21.5 million, resulting
in 1.7 million shares remaining available for issuance under the
currently authorized ATM program.
Outlook
Based on current market conditions, Peabody anticipates the
following in 2021:
US Thermal Operations:
- Coal deliveries will remain largely dependent on general
economic conditions, weather, natural gas prices, utility inventory
levels and rail performance.
- Essentially all projected volumes priced and committed.
- Based on expected production levels and current commodity
prices, full year 2021 cost per ton in the PRB are estimated to be
$9.35 and other U.S. thermal costs
are estimated to be $30.50.
Seaborne Thermal Operations:
- Higher seaborne thermal volumes in the second half as
Wilpinjong and the Wambo JV complete development projects and reach
projected production run rates.
- Costs per ton are expected to be $33.75 due to product mix, higher expected
royalties, exchange rates and fuel prices.
- Second half Wilpinjong revenue and costs per ton are
anticipated to be higher than first half 2021 as estimated export
shipments (with higher realized pricing and higher preparation,
transportation and royalty costs as compared to domestic shipments)
are anticipated to be a higher proportion of total volumes. Peabody
anticipates 3.7 million tons of export shipments and 3.6 million
tons of domestic shipments for the remainder of the year.
Seaborne Met Operations:
- The CMJV is anticipated to continue to recognize cost and
productivity improvements with full year sales volumes at the high
end of guidance of 3.5 – 4.0 million tons.
- Metropolitan is expected to ship approximately 0.8 million tons
in the second half of 2021 as the longwall reaches planned
production levels.
- Costs per ton, excluding Shoal Creek are expected to be
$93.
- The Shoal Creek prep plant upgrade project remains on schedule
with completion expected in mid Q3. Negotiations remain ongoing
with respect to the expired Shoal Creek labor contract.
Corporate and Other
- SG&A expense guidance has been revised down to $80 million reflecting further reductions in
overhead costs.
- Capital expenditures are now estimated to be $200 million, a $25
million reduction from prior guidance, including major
project capital of $100 million.
- Interest expense is now expected to be approximately
$190 million, including $40 million of non-cash expense, which reflects a
$10 million decrease from prior
guidance due to early debt retirements.
- Peabody also anticipates the following cash impacts for the
full year 2021:
-
- $60 million related to final
reclamation activities
- $30 million related to
postretirement benefits
- $15 million final payment
pursuant to settlement with multi-employer pension plan (MEPP),
paid in July
Today's earnings call is scheduled for 10
a.m. CT and can be accessed via the company's website at
PeabodyEnergy.com.
Peabody (NYSE: BTU) is a leading coal producer, providing
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:
Alice
Tharenos
314.342.7890
_______________
1 Adjusted EBITDA is a non-GAAP financial
measure. 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.
2021 Guidance Targets
Segment Performance
|
Total Volume
(millions of
short tons)
|
Priced Volume
(millions of short
tons)
|
Priced Volume
Pricing per
Short Ton
|
Average Cost
per Short Ton
|
PRB –
Total
|
~85 - 90
|
~86
|
~$11.00
|
~$9.35
|
Other U.S. Thermal –
Total
|
~16 - 17
|
~16.5
|
~$39.50
|
~$30.50
|
Seaborne Thermal
(Export)
|
~9.5 -
10.5
|
~6.6
|
~$70.00
|
|
Seaborne Thermal –
Total
|
~17 - 18
|
|
|
~$33.75
|
Seaborne
Metallurgical (excluding Shoal Creek)
|
~4.5 - 5
|
~2.8
|
~$88.00
|
~$93.00
|
Wilpinjong Performance
|
Volume
(millions of
short tons)
|
Priced Volume
(millions of short
tons)
|
Priced Volume
Pricing per
Short Ton
|
Average Cost
per Short Ton
|
Wilpinjong
(Export)
|
~6
|
~3.5
|
~$56.70
|
|
Wilpinjong
(Domestic)
|
~7.5
|
~7.5
|
|
|
Wilpinjong –
Total
|
~13.5
|
~11.0
|
|
~$23.00
|
Other Annual Financial Metrics ($ in
millions)
|
|
SG&A
|
~$80
|
Net Cash Interest
Payments
|
~$150
|
Interest Expense
(Including Non-Cash)
|
~$190
|
Total Capital
Expenditures
|
~$200
|
Major Project Capital
Expenditures
|
~$100
|
ARO Cash
Spend
|
~$60
|
Postretirement
benefits cash spend
|
~$30
|
Multi-employer
pension plan (MEPP) payment
|
~$15
|
Supplemental Information
|
|
PRB and
Other U.S.
Thermal
|
PRB and Other U.S.
Thermal volumes reflect volumes priced as of June 30,
2021.
|
Seaborne
Thermal
|
Seaborne Thermal
volumes reflect volumes priced as of June 30, 2021. Realized
seaborne thermal export pricing varies based on sales timing and
product quality as well as optimization of price, quality and
volumes. In general, the Wambo unpriced products are expected
to price with reference to Globalcoal "NEWC" levels and Wilpinjong,
with a higher ash content, is anticipated to price at a 5-15%
discount to API 5 price levels.
|
Seaborne
Metallurgical
|
CMJV volumes are
expected to be 3.5 – 4.0 million tons. Metropolitan volumes
are expected to be 1.0 million tons. No guidance has been
provided for Shoal Creek.
|
Certain forward-looking measures and metrics presented are
non-GAAP financial and operating/statistical measures. Due to the
volatility and variability of certain items needed to reconcile
these measures to their nearest GAAP measure, no reconciliation can
be provided without unreasonable cost or effort.
Condensed
Consolidated Statements of Operations (Unaudited)
|
For the Quarters
and Six Months Ended Jun. 30, 2021 and 2020
|
|
(In Millions, Except
Per Share Data)
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
Six Months
Ended
|
|
|
Jun.
|
|
Jun.
|
|
Jun.
|
|
Jun.
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
|
|
Tons Sold
|
|
32.8
|
|
|
28.3
|
|
|
63.0
|
|
|
63.9
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
723.4
|
|
|
$
|
626.7
|
|
|
$
|
1,374.7
|
|
|
$
|
1,472.9
|
|
Operating Costs and
Expenses (1)
|
611.4
|
|
|
556.3
|
|
|
1,194.0
|
|
|
1,335.8
|
|
Depreciation,
Depletion and Amortization
|
77.1
|
|
|
88.3
|
|
|
145.4
|
|
|
194.3
|
|
Asset Retirement
Obligation Expenses
|
15.1
|
|
|
14.1
|
|
|
31.0
|
|
|
31.7
|
|
Selling and
Administrative Expenses
|
21.4
|
|
|
25.2
|
|
|
43.1
|
|
|
50.1
|
|
Restructuring
Charges
|
2.1
|
|
|
16.5
|
|
|
4.2
|
|
|
23.0
|
|
Transaction Costs
Related to Joint Ventures
|
—
|
|
|
12.9
|
|
|
—
|
|
|
17.1
|
|
Other Operating
(Income) Loss:
|
|
|
|
|
|
|
|
Net (Gain) Loss on
Disposals
|
(3.0)
|
|
|
0.2
|
|
|
(2.4)
|
|
|
(7.9)
|
|
Asset
Impairment
|
—
|
|
|
1,418.1
|
|
|
—
|
|
|
1,418.1
|
|
Loss from Equity
Affiliates
|
3.5
|
|
|
6.0
|
|
|
4.4
|
|
|
15.1
|
|
Operating
Loss
|
(4.2)
|
|
|
(1,510.9)
|
|
|
(45.0)
|
|
|
(1,604.4)
|
|
Interest
Expense
|
45.4
|
|
|
34.3
|
|
|
97.8
|
|
|
67.4
|
|
Net Gain on Early
Debt Extinguishment
|
(11.8)
|
|
|
—
|
|
|
(15.3)
|
|
|
—
|
|
Interest
Income
|
(1.3)
|
|
|
(2.4)
|
|
|
(2.8)
|
|
|
(5.5)
|
|
Net Periodic Benefit
(Credit) Costs, Excluding Service Cost
|
(8.7)
|
|
|
2.7
|
|
|
(17.4)
|
|
|
5.5
|
|
Loss from Continuing
Operations Before Income Taxes
|
(27.8)
|
|
|
(1,545.5)
|
|
|
(107.3)
|
|
|
(1,671.8)
|
|
Income Tax (Benefit)
Provision
|
(4.8)
|
|
|
(0.2)
|
|
|
(6.6)
|
|
|
2.8
|
|
Loss from Continuing
Operations, Net of Income Taxes
|
(23.0)
|
|
|
(1,545.3)
|
|
|
(100.7)
|
|
|
(1,674.6)
|
|
Loss from
Discontinued Operations, Net of Income Taxes
|
(2.3)
|
|
|
(2.3)
|
|
|
(4.3)
|
|
|
(4.5)
|
|
Net Loss
|
(25.3)
|
|
|
(1,547.6)
|
|
|
(105.0)
|
|
|
(1,679.1)
|
|
Less: Net Income
(Loss) Attributable to Noncontrolling Interests
|
3.3
|
|
|
(3.4)
|
|
|
3.7
|
|
|
(5.2)
|
|
Net Loss Attributable
to Common Stockholders
|
$
|
(28.6)
|
|
|
$
|
(1,544.2)
|
|
|
$
|
(108.7)
|
|
|
$
|
(1,673.9)
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
(2)
|
$
|
122.1
|
|
|
$
|
23.4
|
|
|
$
|
183.2
|
|
|
$
|
60.2
|
|
|
|
|
|
|
|
|
|
Diluted EPS - Loss
from Continuing Operations (3)(4)
|
$
|
(0.26)
|
|
|
$
|
(15.76)
|
|
|
$
|
(1.05)
|
|
|
$
|
(17.12)
|
|
|
|
|
|
|
|
|
|
|
Diluted EPS - Net
Loss Attributable to Common Stockholders (3)
|
$
|
(0.28)
|
|
|
$
|
(15.78)
|
|
|
$
|
(1.09)
|
|
|
$
|
(17.16)
|
|
|
|
(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 June 30, 2021 and 2020, weighted average diluted shares
outstanding were 101.2 million and 97.9 million, respectively.
During the six months ended June 30, 2021 and 2020, weighted
average diluted shares outstanding were 99.8 million and 97.5
million, respectively.
|
(4)
|
Reflects loss from
continuing operations, net of income taxes less net income (loss)
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
and Six Months Ended Jun. 30, 2021 and 2020
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
Six Months
Ended
|
|
|
Jun.
|
|
Jun.
|
|
Jun.
|
|
Jun.
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Tons Sold (In
Millions)
|
|
|
|
|
|
|
|
Seaborne Thermal
Mining Operations
|
4.1
|
|
|
4.6
|
|
|
8.2
|
|
|
9.2
|
|
Seaborne
Metallurgical Mining Operations
|
1.4
|
|
|
1.1
|
|
|
2.4
|
|
|
3.1
|
|
Powder River Basin
Mining Operations
|
22.5
|
|
|
17.9
|
|
|
43.2
|
|
|
41.4
|
|
Other U.S. Thermal
Mining Operations
|
3.9
|
|
|
3.8
|
|
|
7.8
|
|
|
8.7
|
|
Total U.S. Thermal
Mining Operations
|
26.4
|
|
|
21.7
|
|
|
51.0
|
|
|
50.1
|
|
Corporate and
Other
|
0.9
|
|
|
0.9
|
|
|
1.4
|
|
|
1.5
|
|
Total
|
32.8
|
|
|
28.3
|
|
|
63.0
|
|
|
63.9
|
|
|
|
|
|
|
|
|
|
|
Revenue Summary (In
Millions)
|
|
|
|
|
|
|
|
Seaborne Thermal
Mining Operations
|
$
|
194.1
|
|
|
$
|
162.0
|
|
|
$
|
370.5
|
|
|
$
|
363.1
|
|
Seaborne
Metallurgical Mining Operations
|
121.0
|
|
|
91.6
|
|
|
208.5
|
|
|
284.8
|
|
Powder River Basin
Mining Operations
|
248.6
|
|
|
205.8
|
|
|
477.0
|
|
|
472.4
|
|
Other U.S. Thermal
Mining Operations
|
162.1
|
|
|
152.0
|
|
|
311.4
|
|
|
344.3
|
|
Total U.S. Thermal
Mining Operations
|
410.7
|
|
|
357.8
|
|
|
788.4
|
|
|
816.7
|
|
Corporate and
Other
|
(2.4)
|
|
|
15.3
|
|
|
7.3
|
|
|
8.3
|
|
Total
|
$
|
723.4
|
|
|
$
|
626.7
|
|
|
$
|
1,374.7
|
|
|
$
|
1,472.9
|
|
|
|
|
|
|
|
|
|
|
Total Reporting
Segment Costs Summary (In Millions) (1)
|
|
|
|
|
|
|
|
Seaborne Thermal
Mining Operations
|
$
|
122.7
|
|
|
$
|
134.3
|
|
|
$
|
270.6
|
|
|
$
|
280.3
|
|
Seaborne
Metallurgical Mining Operations
|
147.4
|
|
|
127.7
|
|
|
257.3
|
|
|
353.6
|
|
Powder River Basin
Mining Operations
|
203.1
|
|
|
166.5
|
|
|
401.4
|
|
|
407.7
|
|
Other U.S. Thermal
Mining Operations
|
117.8
|
|
|
119.1
|
|
|
230.9
|
|
|
272.9
|
|
Total U.S. Thermal
Mining Operations
|
320.9
|
|
|
285.6
|
|
|
632.3
|
|
|
680.6
|
|
Corporate and
Other
|
11.6
|
|
|
16.9
|
|
|
9.8
|
|
|
35.0
|
|
Total
|
$
|
602.6
|
|
|
$
|
564.5
|
|
|
$
|
1,170.0
|
|
|
$
|
1,349.5
|
|
|
|
|
|
|
|
|
|
|
Other Supplemental
Financial Data (In Millions)
|
|
|
|
|
|
|
|
Adjusted EBITDA -
Seaborne Thermal Mining Operations
|
$
|
71.4
|
|
|
$
|
27.7
|
|
|
$
|
99.9
|
|
|
$
|
82.8
|
|
Adjusted EBITDA -
Seaborne Metallurgical Mining Operations
|
(26.4)
|
|
|
(36.1)
|
|
|
(48.8)
|
|
|
(68.8)
|
|
Adjusted EBITDA -
Powder River Basin Mining Operations
|
45.5
|
|
|
39.3
|
|
|
75.6
|
|
|
64.7
|
|
Adjusted EBITDA - Other
U.S. Thermal Mining Operations
|
44.3
|
|
|
32.9
|
|
|
80.5
|
|
|
71.4
|
|
Adjusted EBITDA -
Total U.S. Thermal Mining Operations
|
89.8
|
|
|
72.2
|
|
|
156.1
|
|
|
136.1
|
|
Middlemount
(2)
|
(4.1)
|
|
|
(6.4)
|
|
|
(6.4)
|
|
|
(16.1)
|
|
Resource Management
Results (3)
|
3.9
|
|
|
0.8
|
|
|
4.3
|
|
|
8.8
|
|
Selling and
Administrative Expenses
|
(21.4)
|
|
|
(25.2)
|
|
|
(43.1)
|
|
|
(50.1)
|
|
Other Operating
Costs, Net (4)
|
8.9
|
|
|
(9.6)
|
|
|
21.2
|
|
|
(32.5)
|
|
Adjusted EBITDA
(1)
|
$
|
122.1
|
|
|
$
|
23.4
|
|
|
$
|
183.2
|
|
|
$
|
60.2
|
|
|
|
|
|
|
|
|
|
|
Note:
See footnote explanations on following page
|
Supplemental
Financial Data (Unaudited)
|
|
|
|
|
|
For the Quarters
and Six Months Ended Jun. 30, 2021 and 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
Six Months
Ended
|
|
|
Jun.
|
|
Jun.
|
|
Jun.
|
|
Jun.
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Revenues per Ton -
Mining Operations (5)
|
|
|
|
|
|
|
|
Seaborne
Thermal
|
$
|
46.92
|
|
|
$
|
35.10
|
|
|
$
|
45.15
|
|
|
$
|
39.58
|
|
Seaborne
Metallurgical
|
85.48
|
|
|
86.80
|
|
|
86.31
|
|
|
92.61
|
|
Powder River
Basin
|
11.06
|
|
|
11.45
|
|
|
11.04
|
|
|
11.40
|
|
Other U.S.
Thermal
|
40.70
|
|
|
39.81
|
|
|
39.75
|
|
|
39.49
|
|
Total U.S.
Thermal
|
15.53
|
|
|
16.42
|
|
|
15.45
|
|
|
16.28
|
|
|
|
|
|
|
|
|
|
|
Costs per Ton -
Mining Operations (5)(6)
|
|
|
|
|
|
|
|
Seaborne
Thermal
|
$
|
29.61
|
|
|
$
|
29.19
|
|
|
$
|
32.97
|
|
|
$
|
30.56
|
|
Seaborne
Metallurgical
|
104.24
|
|
|
120.72
|
|
|
106.51
|
|
|
115.00
|
|
Powder River
Basin
|
9.04
|
|
|
9.26
|
|
|
9.29
|
|
|
9.84
|
|
Other U.S.
Thermal
|
29.57
|
|
|
31.22
|
|
|
29.47
|
|
|
31.31
|
|
Total U.S.
Thermal
|
12.14
|
|
|
13.11
|
|
|
12.39
|
|
|
13.57
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
Margin per Ton - Mining Operations (5)(6)
|
|
|
|
|
|
|
|
Seaborne
Thermal
|
$
|
17.31
|
|
|
$
|
5.91
|
|
|
$
|
12.18
|
|
|
$
|
9.02
|
|
Seaborne
Metallurgical
|
(18.76)
|
|
|
(33.92)
|
|
|
(20.20)
|
|
|
(22.39)
|
|
Powder River
Basin
|
2.02
|
|
|
2.19
|
|
|
1.75
|
|
|
1.56
|
|
Other U.S.
Thermal
|
11.13
|
|
|
8.59
|
|
|
10.28
|
|
|
8.18
|
|
Total U.S.
Thermal
|
3.39
|
|
|
3.31
|
|
|
3.06
|
|
|
2.71
|
|
|
|
|
|
|
|
|
|
|
(1)
|
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.
|
(2)
|
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
|
|
Six Months
Ended
|
|
|
Jun.
|
|
Jun.
|
|
Jun.
|
|
Jun.
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
|
(In
Millions)
|
|
Tons sold
|
0.5
|
|
|
0.3
|
|
|
1.1
|
|
|
0.8
|
|
|
Depreciation,
depletion and amortization and asset retirement obligation
expenses
|
$
|
6.9
|
|
|
$
|
8.4
|
|
|
$
|
13.6
|
|
|
$
|
14.3
|
|
|
Net interest
expense
|
5.0
|
|
|
3.2
|
|
|
10.1
|
|
|
5.9
|
|
|
Income tax
benefit
|
(0.8)
|
|
|
(2.8)
|
|
|
(0.9)
|
|
|
(7.0)
|
|
|
|
(3)
|
Includes gains
(losses) on certain surplus coal reserve and surface land sales and
property management costs and revenues.
|
(4)
|
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.
|
(5)
|
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.
|
(6)
|
Includes
revenue-based production taxes and royalties; excludes
depreciation, depletion and amortization; asset retirement
obligation expenses; selling and
administrative expenses; restructuring charges; asset impairment;
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 Jun. 30,
2021 and Dec. 31, 2020
|
|
|
|
|
|
(Dollars In
Millions)
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
Jun. 30,
2021
|
|
Dec. 31,
2020
|
|
|
|
|
|
Cash and Cash
Equivalents
|
$
|
548.3
|
|
|
$
|
709.2
|
|
Restricted
Cash
|
13.6
|
|
|
—
|
|
Accounts Receivable,
Net
|
250.7
|
|
|
244.8
|
|
Inventories
|
232.5
|
|
|
261.6
|
|
Other Current
Assets
|
225.4
|
|
|
204.7
|
|
Total Current
Assets
|
1,270.5
|
|
|
1,420.3
|
|
Property, Plant,
Equipment and Mine Development, Net
|
3,008.3
|
|
|
3,051.1
|
|
Operating Lease
Right-of-Use Assets
|
42.4
|
|
|
49.9
|
|
Investments and Other
Assets
|
132.2
|
|
|
140.9
|
|
Deferred Income
Taxes
|
—
|
|
|
4.9
|
|
Total
Assets
|
$
|
4,453.4
|
|
|
$
|
4,667.1
|
|
|
|
|
|
|
Current Portion of
Long-Term Debt
|
$
|
94.0
|
|
|
$
|
44.9
|
|
Accounts Payable and
Accrued Expenses
|
711.0
|
|
|
745.7
|
|
Total Current
Liabilities
|
805.0
|
|
|
790.6
|
|
Long-Term Debt, Less
Current Portion
|
1,324.1
|
|
|
1,502.9
|
|
Deferred Income
Taxes
|
34.2
|
|
|
35.0
|
|
Asset Retirement
Obligations
|
664.5
|
|
|
650.5
|
|
Accrued
Postretirement Benefit Costs
|
405.9
|
|
|
413.2
|
|
Operating Lease
Liabilities, Less Current Portion
|
34.8
|
|
|
42.1
|
|
Other Noncurrent
Liabilities
|
233.1
|
|
|
251.5
|
|
Total
Liabilities
|
3,501.6
|
|
|
3,685.8
|
|
|
|
|
|
|
Common
Stock
|
1.5
|
|
|
1.4
|
|
Additional Paid-in
Capital
|
3,463.8
|
|
|
3,364.6
|
|
Treasury
Stock
|
(1,370.2)
|
|
|
(1,368.9)
|
|
Accumulated
Deficit
|
(1,382.0)
|
|
|
(1,273.3)
|
|
Accumulated Other
Comprehensive Income
|
183.4
|
|
|
205.8
|
|
Peabody Energy
Corporation Stockholders' Equity
|
896.5
|
|
|
929.6
|
|
Noncontrolling
Interests
|
55.3
|
|
|
51.7
|
|
Total Stockholders'
Equity
|
951.8
|
|
|
981.3
|
|
Total Liabilities and
Stockholders' Equity
|
$
|
4,453.4
|
|
|
$
|
4,667.1
|
|
|
|
|
|
|
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 Six Months
Ended Jun. 30, 2021 and 2020
|
|
|
|
|
(Dollars In
Millions)
|
|
|
|
|
Six Months
Ended
|
|
Jun.
|
|
Jun.
|
|
2021
|
|
2020
|
Cash Flows From
Operating Activities
|
|
|
|
Net Cash Used In
Continuing Operations
|
$
|
(18.0)
|
|
|
$
|
(32.7)
|
|
Net Cash Used in
Discontinued Operations
|
(4.8)
|
|
|
(20.4)
|
|
Net Cash Used In
Operating Activities
|
(22.8)
|
|
|
(53.1)
|
|
Cash Flows From
Investing Activities
|
|
|
|
Additions to
Property, Plant, Equipment and Mine Development
|
(93.9)
|
|
|
(85.8)
|
|
Changes in Accrued
Expenses Related to Capital Expenditures
|
(4.1)
|
|
|
(14.3)
|
|
Proceeds from
Disposal of Assets, Net of Receivables
|
4.9
|
|
|
12.0
|
|
Contributions to
Joint Ventures
|
(244.5)
|
|
|
(192.0)
|
|
Distributions from
Joint Ventures
|
252.6
|
|
|
188.2
|
|
Advances to Related
Parties
|
(0.2)
|
|
|
(23.1)
|
|
Cash Receipts from
Middlemount Coal Pty Ltd and Other Related Parties
|
2.6
|
|
|
—
|
|
Other, Net
|
—
|
|
|
(0.6)
|
|
Net Cash Used In
Investing Activities
|
(82.6)
|
|
|
(115.6)
|
|
Cash Flows From
Financing Activities
|
|
|
|
Proceeds from
Long-Term Debt
|
—
|
|
|
300.0
|
|
Repayments of
Long-Term Debt
|
(83.1)
|
|
|
(9.9)
|
|
Payment of Debt
Issuance and Other Deferred Financing Costs
|
(22.5)
|
|
|
—
|
|
Proceeds from Common
Stock Issuances, Net of Costs
|
65.1
|
|
|
—
|
|
Repurchase of
Employee Common Stock Relinquished for Tax Withholding
|
(1.3)
|
|
|
(1.6)
|
|
Distributions to
Noncontrolling Interests
|
(0.1)
|
|
|
(3.5)
|
|
Net Cash (Used In)
Provided By Financing Activities
|
(41.9)
|
|
|
285.0
|
|
Net Change in
Cash, Cash Equivalents and Restricted Cash
|
(147.3)
|
|
|
116.3
|
|
Cash, Cash
Equivalents and Restricted Cash at Beginning of
Period
|
709.2
|
|
|
732.2
|
|
Cash, Cash
Equivalents and Restricted Cash at End of Period
|
$
|
561.9
|
|
|
$
|
848.5
|
|
|
|
|
|
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
and Six Months Ended Jun. 30, 2021 and 2020
|
|
(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
|
|
Six Months
Ended
|
|
Jun.
|
|
Jun.
|
|
Jun.
|
|
Jun.
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
|
Loss from Continuing
Operations, Net of Income Taxes
|
$
|
(23.0)
|
|
|
$
|
(1,545.3)
|
|
|
$
|
(100.7)
|
|
|
$
|
(1,674.6)
|
|
Depreciation,
Depletion and Amortization
|
77.1
|
|
|
88.3
|
|
|
145.4
|
|
|
194.3
|
|
Asset Retirement
Obligation Expenses
|
15.1
|
|
|
14.1
|
|
|
31.0
|
|
|
31.7
|
|
Restructuring
Charges
|
2.1
|
|
|
16.5
|
|
|
4.2
|
|
|
23.0
|
|
Transaction Costs
Related to Joint Ventures
|
—
|
|
|
12.9
|
|
|
—
|
|
|
17.1
|
|
Asset
Impairment
|
—
|
|
|
1,418.1
|
|
|
—
|
|
|
1,418.1
|
|
Changes in Deferred
Tax Asset Valuation Allowance and Reserves
and Amortization of Basis Difference Related to Equity
Affiliates
|
(0.5)
|
|
|
(0.4)
|
|
|
(2.0)
|
|
|
(1.1)
|
|
Interest
Expense
|
45.4
|
|
|
34.3
|
|
|
97.8
|
|
|
67.4
|
|
Net Gain on Early Debt
Extinguishment
|
(11.8)
|
|
|
—
|
|
|
(15.3)
|
|
|
—
|
|
Interest
Income
|
(1.3)
|
|
|
(2.4)
|
|
|
(2.8)
|
|
|
(5.5)
|
|
Unrealized Losses
(Gains) on Economic Hedges
|
23.7
|
|
|
(7.0)
|
|
|
25.6
|
|
|
(4.8)
|
|
Unrealized Losses
(Gains) on Non-Coal Trading Derivative Contracts
|
1.2
|
|
|
(2.8)
|
|
|
8.8
|
|
|
(2.9)
|
|
Take-or-Pay
Contract-Based Intangible Recognition
|
(1.1)
|
|
|
(2.7)
|
|
|
(2.2)
|
|
|
(5.3)
|
|
Income Tax (Benefit)
Provision
|
(4.8)
|
|
|
(0.2)
|
|
|
(6.6)
|
|
|
2.8
|
|
Adjusted EBITDA
(1)
|
$
|
122.1
|
|
|
$
|
23.4
|
|
|
$
|
183.2
|
|
|
$
|
60.2
|
|
|
|
|
|
|
|
|
|
Operating Costs and
Expenses
|
$
|
611.4
|
|
|
$
|
556.3
|
|
|
$
|
1,194.0
|
|
|
$
|
1,335.8
|
|
Unrealized (Losses)
Gains on Non-Coal Trading Derivative Contracts
|
(1.2)
|
|
|
2.8
|
|
|
(8.8)
|
|
|
2.9
|
|
Take-or-Pay
Contract-Based Intangible Recognition
|
1.1
|
|
|
2.7
|
|
|
2.2
|
|
|
5.3
|
|
Net Periodic Benefit
(Credit) Costs, Excluding Service Cost
|
(8.7)
|
|
|
2.7
|
|
|
(17.4)
|
|
|
5.5
|
|
Total Reporting
Segment Costs (2)
|
$
|
602.6
|
|
|
$
|
564.5
|
|
|
$
|
1,170.0
|
|
|
$
|
1,349.5
|
|
|
|
|
|
|
|
|
|
Net Cash Used In
Operating Activities
|
|
|
|
|
$
|
(22.8)
|
|
|
$
|
(53.1)
|
|
Net Cash Used In
Investing Activities
|
|
|
|
|
(82.6)
|
|
|
(115.6)
|
|
Free Cash Flow
(3)
|
|
|
|
|
$
|
(105.4)
|
|
|
$
|
(168.7)
|
|
|
|
|
|
|
(1)
|
Adjusted EBITDA is
defined as loss 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.
|
(2)
|
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.
|
(3)
|
Free Cash Flow is
defined as net cash used in 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.
|
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 sales and other operating performance targets,
cost savings, capital expenditures, other expense items, actions
relating to strategic initiatives, demand for the company's
products, liquidity, capital structure, market share, industry
volume, other financial items, descriptions of management's plans
or objectives for future operations and 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 ongoing 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, 2020, 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