ARCH COAL INC ST. LOUIS, July 30, 2015 /PRNewswire/ --
Earnings Highlights
-------------------
Quarter Ended Six Months Ended
In $ millions, except
per share data 6/30/15 6/30/14 6/30/15 6/30/14
--------------------- ------- ------- ------- -------
Revenues $644.5 $713.8 $1,321.5 $1,449.7
Loss from Operations ($69.5) ($35.8) ($89.3) ($108.9)
Net Loss ($168.1) ($96.9) ($281.3) ($221.0)
Diluted LPS ($0.79) ($0.46) ($1.32) ($1.04)
----------- ------ ------ ------ ------
Adjusted Diluted LPS
(1) ($0.73) ($0.46) ($1.27) ($1.06)
Adjusted EBITDA (1) $45.3 $64.9 $127.1 $92.5
1/- Defined and reconciled under "Reconciliation of non-GAAP measures."
Arch Coal, Inc. (NYSE: ACI) today reported a net loss of $168 million, or $0.79 per diluted share, for the quarter ending June 30, 2015. The company recorded a $19.1 million impairment charge during the quarter and incurred $4.0 million of expenses related to its exchange transaction. Excluding asset impairments, expenses related to debt restructuring and amortization of sales contracts, Arch's second quarter 2015 adjusted net loss was $0.73 per diluted share compared with an adjusted net loss of $0.46 per diluted share in the prior-year quarter. Revenues totaled $644 million in the second quarter of 2015, and adjusted earnings before interest, taxes, depreciation, depletion and amortization ("EBITDA") was $45 million.
http://photos.prnewswire.com/prnvar/20120727/CG47668LOGO
For the first half of 2015, Arch generated adjusted EBITDA of $127 million compared with $93 million in the prior-year period. Total revenues declined to $1.3 billion for the six months ended June 30, 2015, largely due to lower metallurgical coal prices and output versus the prior-year period.
"Arch continues to weather the significant market challenges facing the industry," said John W. Eaves, Arch's chairman and chief executive officer. "Even with the lowest shipment level experienced by Arch in more than five years and shipping challenges in the Powder River Basin, our operations continued to do an outstanding job of managing costs in this environment. In fact, all of our operating regions were cash flow positive during the first half of this year, a position we think sets us apart from our competitors."
"Our repositioned portfolio of large-scale, low-cost thermal operations in the PRB and highly competitive metallurgical coal operations in Appalachia is designed to help allow us to continue to navigate this challenging market environment," added Eaves.
Financial Position
As of June 30, 2015, Arch had a total liquidity position of approximately $812 million, with nearly $690 million of that liquidity in the form of cash and short-term investments. The company had no borrowings under its revolving credit facility at June 30, and has no long-term debt maturities due until mid-2018.
"As expected, with both our $60 million LBA payment and our semi-annual interest payments on the majority of our unsecured debt occurring during the second quarter, we had our highest cash outflow quarter of the year," said John T. Drexler, Arch's senior vice president and chief financial officer. "With the LBA payment behind us and other working capital improvements anticipated over the course of the year, we expect a significant moderation in our cash outflows in the second half of 2015." In addition, the company continues to pursue private exchange offers to deleverage its balance sheet and improve its liquidity profile.
"We continue to focus on controlling our costs and capital spending through this downturn and have reduced our capital and administrative spending expectations by an additional $27 million for full year 2015," said Drexler. "These targeted savings align with our overall focus to prudently manage production levels and costs in the face of one of the worst coal market downturns in history."
Core Values
During the second quarter of 2015, Arch continued to deliver solid safety and environmental performance with five operations attaining A Perfect Zero - a dual achievement of operating without a safety or environmental violation. Arch's total incident rate for the first six months of 2015 was four times better than the industry average. The company also made marked improvements in its environmental compliance record during the first half of 2015 when compared with the prior-year period.
"These achievements reflect the hard work and continued focus of our employees in the face of significant external distractions and pressures," said Paul A. Lang, president and chief operating officer. "Despite current market challenges, we remain focused on our goal of operating the world's safest and most environmentally responsible coal mines."
Operational Results
"While the coal market remains incredibly challenging and despite lower shipment levels than in the first quarter of 2015, we continue to perform very well operationally," said Lang. "Per-ton costs in the Powder River Basin were maintained even with lower volumes and our Bituminous Thermal operations continued to drive down costs, while our Appalachian mines experienced higher costs primarily due to the two expected longwall moves during the quarter."
Arch Coal, Inc.
2Q15 1Q15 2Q14
---- ---- ----
Tons sold (in
millions) 30.6 33.1 32.7
Average sales price
per ton $19.65 $19.18 $20.34
Cash cost per ton $16.83 $15.43 $17.43
Cash margin per ton $2.82 $3.75 $2.91
Total operating cost
per ton $19.96 $18.55 $20.55
Operating margin per
ton ($0.31) $0.63 ($0.21)
Consolidated results may not tie to regional breakout due to exclusion of other assets, rounding.
Cash cost per ton is defined and reconciled under "Reconciliation of non-GAAP measures."
Operating cost per ton is the sum of cash costs and depreciation, depletion and amortization expense divided by tons sold.
--------------------------------------------------------------------------------------------------------------------------
Arch's operations continued to generate healthy operational cash flow margins during the second quarter. On a consolidated basis, Arch earned $2.82 per ton in cash margin during the second quarter of 2015 compared with $3.75 per ton in the first quarter of 2015, reflecting the impact of lower volumes in the company's PRB segment and two longwall moves in its Appalachian segment. The increase in consolidated sales price per ton was more than offset by a nearly eight percent increase in costs resulting from reduced shipment levels from the PRB segment and the impact of the longwall moves in Appalachia.
Powder River Basin
2Q15 1Q15 2Q14
---- ---- ----
Tons sold (in
millions) 25.5 28.5 26.9
Average sales price
per ton $13.24 $13.48 $12.79
Cash cost per ton $10.99 $10.96 $11.09
Cash margin per ton $2.25 $2.52 $1.70
Total operating cost
per ton $12.66 $12.52 $12.61
Operating margin per
ton $0.58 $0.96 $0.18
Cash cost per ton is defined and reconciled under "Reconciliation of non-GAAP measures."
Operating cost per ton is the sum of cash costs and depreciation, depletion and amortization expense divided by tons
sold.
--------------------------------------------------------------------------------------------------------------------
In the Powder River Basin, second quarter cash margin per ton decreased 11 percent to $2.25 per ton versus the first quarter. The decline was due to lower average selling price per ton, reflecting lower contracted pricing, particularly on indexed volumes, and a larger percentage of lower-quality tons in our regional sales mix. Cash costs per ton were flat, despite the decline in shipment volume, due to significant reductions in maintenance and supplies costs.
Appalachia
2Q15 1Q15 2Q14
---- ---- ----
Tons sold (in
millions) 3.1 3.0 3.7
Average sales price
per ton $65.83 $65.23 $69.36
Cash cost per ton $62.86 $52.41 $62.36
Cash margin per ton $2.97 $12.82 $7.00
Total operating cost
per ton $76.46 $68.55 $76.25
Operating margin per
ton ($10.63) ($3.32) ($6.89)
Cash cost per ton is defined and reconciled under "Reconciliation of non-GAAP measures."
Operating cost per ton is the sum of cash costs and depreciation, depletion and amortization expense divided by tons sold.
--------------------------------------------------------------------------------------------------------------------------
In Appalachia, Arch's cash margin per ton declined to $2.97 per ton from $12.82 per ton in the first quarter. Average selling price per ton increased slightly due to an increase in the percentage of metallurgical tons in the regional sales mix. The expected increase in cash cost per ton reflects the lower output at the two low-cost longwall operations due to the previously discussed second quarter longwall moves and the start of the annual miners' vacation period.
Bituminous Thermal
2Q15 1Q15 2Q14
---- ---- ----
Tons sold (in
millions) 1.9 1.6 2.0
Average sales price
per ton $30.37 $33.42 $31.34
Cash cost per ton $20.15 $25.00 $19.83
Cash margin per ton $10.22 $8.42 $11.51
Total operating cost
per ton $25.77 $31.21 $24.51
Operating margin per
ton $4.60 $2.21 $6.83
Cash cost per ton is defined and reconciled under "Reconciliation of non-GAAP measures."
Operating cost per ton is the sum of cash costs and depreciation, depletion and amortization expense divided by tons sold.
--------------------------------------------------------------------------------------------------------------------------
In the Bituminous Thermal region, second quarter cash margin per ton increased 21 percent to $10.22 per ton, primarily due to a 19 percent decrease in cash cost per ton. The improvement in cash cost per ton was driven by strong cost control across the segment as well as increased volume levels at the lower-cost West Elk mine. Average sales price per ton declined 9 percent to $30.37, reflecting lower pricing on contracted tons.
Market Trends
Economic recovery and a return to normal temperatures are boosting power demand. However, coal's share of generation has eroded in the face of low natural gas prices and the impact of the MATS regulations. According to the EIA, gas's share of generation in April eclipsed that of coal for the first time on record, and gas prices remain mired below $3 per million Btus. As a result, Arch continues to expect a decrease in domestic utility coal consumption of 80 million tons this year.
However, while domestic coal demand is down, U.S. producers are starting to respond. Based on preliminary MSHA data, stockpile data, and various mine idling announcements, Arch now expects coal production to fall by over 90 million tons in 2015 compared to 2014. While the company expects coal stockpiles to remain elevated for some time, strong supply rationalization could lead to a better domestic thermal market in the future.
Internationally, the seaborne market remains challenging. The Australian dollar has weakened appreciably against the U.S. dollar, and Australia's coking coal benchmark recently settled at $93 per metric ton, the lowest since 2004. Thermal prices remain under considerable pressure as well.
"In the face of these challenges, Arch continues to adapt to market conditions and to focus on those market segments where it can capture the most value," Lang said.
Company Outlook
Given challenging market conditions, Arch has lowered the high end of its thermal guidance and now expects thermal sales volumes for 2015 to be in the range of 120 million to 124 million tons. In addition, Arch has again lowered its SG&A and capex guidance.
"We continue to take proactive steps to prudently manage through these tough times, with the goal of emerging a stronger company as markets recover," Eaves said. "Our cash-positive operating profile, relentless focus on cost control and capex management should enable us to continue to weather the ongoing challenges."
2015 2016
---- ----
Tons $ per ton Tons $ per ton
---- --------- ---- ---------
Sales Volume (in millions tons)
------------------------------
Thermal 120.0 - 124.0
Met 6.0 - 6.8
--- --- ---
Total 126.0 - 130.8
Powder River Basin
------------------
Committed, Priced 105.5 $13.32 52.0 $13.99
Committed, Unpriced 1.6 14.3
------------------- --- ----
Total Committed 107.1 66.3
Average Cash Cost $10.60 - $11.00
Appalachia
----------
Committed, Priced Thermal 5.6 $55.69 2.0 $58.04
Committed, Unpriced Thermal - -
Committed, Priced Metallurgical 5.2 $77.20 0.7 $82.45
Committed, Unpriced
Metallurgical 0.4 0.6
------------------- --- ---
Total Committed 11.2 3.3
Average Cash Cost $56.75 - $59.75
Bituminous Thermal
------------------
Committed, Priced 6.7 $32.24 3.0 $34.85
Committed, Unpriced 0.2 -
------------------- --- ---
Total Committed 6.9 3.0
Average Cash Cost $23.00 - $25.00
Corporate (in $ millions)
------------------------
D,D&A $400 - $420
S,G&A $95 - $105
Interest Expense $385 - $395
Capital Expenditures $130 - $140
Liquidated Damages $50 - $60
------------------ --- --- ---
A conference call regarding Arch Coal's second quarter 2015 financial results will be webcast live today at 11 a.m. Eastern time. The conference call can be accessed via the "investor" section of the Arch Coal website (http://investor.archcoal.com).
U.S.-based Arch Coal, Inc. is one of the world's top coal producers for the global steel and power generation industries, serving customers on five continents. Its network of mining complexes is the most diversified in the United States, spanning every major coal basin in the nation. The company controls more than 5 billion tons of high-quality metallurgical and thermal coal reserves, with access to all major railroads, inland waterways and a growing number of seaborne trade channels. For more information, visit www.archcoal.com.
Forward-Looking Statements: This press release contains "forward-looking statements" - that is, statements related to future, not past, events. In this context, forward-looking statements often address our expected future business and financial performance, and often contain words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," or "will." Forward-looking statements by their nature address matters that are, to different degrees, uncertain. For us, particular uncertainties arise from changes in the demand for our coal by the domestic electric generation industry; from legislation and regulations relating to the Clean Air Act and other environmental initiatives; from operational, geological, permit, labor and weather-related factors; from fluctuations in the amount of cash we generate from operations; from potential demands for additional collateral for self-bonding; from our ability to complete our potential exchange offers; from future integration of acquired businesses; and from numerous other matters of national, regional and global scale, including those of a political, economic, business, competitive or regulatory nature. These uncertainties may cause our actual future results to be materially different than those expressed in our forward-looking statements. We do not undertake to update our forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by law. For a description of some of the risks and uncertainties that may affect our future results, you should see the risk factors described from time to time in the reports we file with the Securities and Exchange Commission.
Arch Coal, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
Three Months Ended June 30, Six Months Ended June 30,
--------------------------- -------------------------
2015 2014 2015 2014
---- ---- ---- ----
(Unaudited)
Revenues $644,462 $713,776 $1,321,467 $1,449,747
Costs, expenses and other operating
Cost of sales 566,252 622,137 1,128,574 1,308,451
Depreciation,
depletion and
amortization 97,372 102,464 202,246 206,887
Amortization of
acquired sales
contracts, net (1,644) (3,239) (5,034) (6,935)
Change in fair value
of coal derivatives
and coal trading
activities, net 1,211 (2,992) 2,431 (2,078)
Asset impairment and
mine closure costs 19,146 1,512 19,146 1,512
Selling, general and
administrative
expenses 24,268 29,931 46,873 59,067
Other operating
(income) expense,
net 7,403 (232) 16,489 (8,230)
----- ---- ------ ------
714,008 749,581 1,410,725 1,558,674
------- ------- --------- ---------
Loss from operations (69,546) (35,805) (89,258) (108,927)
Interest expense, net
Interest expense (99,574) (97,960) (198,826) (194,431)
Interest and
investment income 962 2,036 3,335 3,879
(98,612) (95,924) (195,491) (190,552)
Nonoperating expense
Expenses related to
debt restructuring (4,016) - (4,016) -
------ --- ------ ---
Loss before income
taxes (172,174) (131,729) (288,765) (299,479)
Benefit from income
taxes (4,071) (34,869) (7,467) (78,480)
------ ------- ------ -------
Net loss $(168,103) $(96,860) $(281,298) $(220,999)
========= ======== ========= =========
Net loss per common share
Basic and diluted LPS
-Net loss $(0.79) $(0.46) $(1.32) $(1.04)
====== ====== ====== ======
Basic and diluted
weighted average
shares outstanding 212,914 212,225 212,788 212,198
======= ======= ======= =======
Dividends declared
per common share $ - $ - $ - $0.01
=============== ============== ================= =====
Adjusted EBITDA (A) $45,328 $64,932 $127,100 $92,537
======= ======= ======== =======
Adjusted diluted Loss
per common share (A) $(0.73) $(0.46) $(1.27) $(1.06)
====== ====== ====== ======
(A) Adjusted EBITDA and Adjusted diluted Loss per common share are defined and reconciled under "Reconciliation of Non-GAAP Measures" later in this release.
Arch Coal, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(In thousands)
June 30, December 31,
-------- ------------
2015 2014
---- ----
(Unaudited)
Assets
Current assets
Cash
and
cash
equivalents $439,655 $734,231
Short
term
investments 249,754 248,954
Restricted
cash 43,563 5,678
Trade
accounts
receivable 204,593 211,506
Other
receivables 14,948 20,511
Inventories 223,929 190,253
Prepaid
royalties 9,006 11,118
Deferred
income
taxes 47,277 52,728
Coal
derivative
assets 13,358 13,257
Other
current
assets 50,838 54,515
------ ------
Total
current
assets 1,296,921 1,542,751
Property,
plant
and
equipment,
net 6,341,026 6,453,458
Other assets
Prepaid
royalties 52,956 66,806
Equity
investments 227,788 235,842
Other
noncurrent
assets 117,664 130,866
------- -------
Total
other
assets 398,408 433,514
------- -------
Total
assets $8,036,355 $8,429,723
========== ==========
Liabilities and Stockholders' Equity
Current liabilities
Accounts
payable $156,725 $180,113
Accrued
expenses
and
other
current
liabilities 262,958 302,396
Current
maturities
of
debt 31,763 36,885
------ ------
Total
current
liabilities 451,446 519,394
Long-
term
debt 5,114,581 5,123,485
Asset
retirement
obligations 409,435 398,896
Accrued
pension
benefits 13,580 16,260
Accrued
postretirement
benefits
other
than
pension 34,176 32,668
Accrued
workers'
compensation 97,489 94,291
Deferred
income
taxes 411,930 422,809
Other
noncurrent
liabilities 109,693 153,766
------- -------
Total
liabilities 6,642,330 6,761,569
Stockholders' equity
Common
Stock 2,145 2,141
Paid-
in
capital 3,051,805 3,048,460
Treasury
stock,
at
cost (53,863) (53,863)
Accumulated
deficit (1,613,123) (1,331,825)
Accumulated
other
comprehensive
income 7,061 3,241
----- -----
Total
stockholders'
equity 1,394,025 1,668,154
--------- ---------
Total
liabilities
and
stockholders'
equity $8,036,355 $8,429,723
========== ==========
Arch Coal, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(In thousands)
Six Months Ended June 30,
-------------------------
2015 2014
---- ----
(Unaudited)
Operating activities
Net loss $(281,298) $(220,999)
Adjustments to reconcile to cash
provided by operating activities:
Depreciation,
depletion
and
amortization 202,246 206,887
Amortization
of
acquired
sales
contracts,
net (5,034) (6,935)
Prepaid
royalties
expensed 3,939 3,575
Employee
stock-
based
compensation
expense 3,354 5,469
Asset
impairment
and
non-
cash
mine
closure
costs 17,242 1,512
Expenses
related
to debt
restructuring 4,016 -
Gains on
disposals
and
divestitures (1,325) (18,506)
Amortization
relating
to
financing
activities 12,539 7,757
Changes in:
Receivables 12,433 267
Inventories (33,743) 3,522
Accounts
payable,
accrued
expenses
and
other
current
liabilities (56,419) 10,495
Income
taxes,
net (37) (571)
Deferred
income
taxes (7,510) (78,568)
Other 4,022 7,749
Cash
used in
operating
activities (125,575) (78,346)
Investing activities
Capital
expenditures (99,361) (95,746)
Additions
to
prepaid
royalties (409) (3,341)
Proceeds
from
disposals
and
dispositions 991 43,245
Purchases
of
short
term
investments (161,336) (168,951)
Proceeds
from
sales of
short
term
investments 157,729 166,018
Investments
in and
advances
to
affiliates,
net (5,138) (9,501)
------ ------
Cash
used in
investing
activities (107,524) (68,276)
Financing activities
Payments
on term
loan (9,750) (9,750)
Net
payments
on
other
debt (9,826) (9,390)
Expenses
related
to debt
restructuring (4,016) -
Debt
financing
costs - (1,957)
Dividends
paid - (2,123)
Withdrawals
(deposits)
of
restricted
cash (37,885) (1,103)
------- ------
Cash
used in
financing
activities (61,477) (24,323)
------- -------
Decrease
in cash
and cash
equivalents (294,576) (170,945)
Cash and
cash
equivalents,
beginning
of
period 734,231 911,099
------- -------
Cash and
cash
equivalents,
end of
period $439,655 $740,154
======== ========
Arch Coal, Inc. and Subsidiaries
Schedule of Consolidated Debt
(In thousands)
June 30, December 31,
-------- ------------
2015 2014
---- ----
(Unaudited)
Term loan due
2018 ($1.9
billion and
$1.93
billion face
value,
respectively) $1,883,109 $1,890,846
7.00% senior
notes due
2019 at par 1,000,000 1,000,000
9.875% senior
notes
($375.0
million face
value) due
2019 364,517 363,493
8.00% senior
secured
notes due
2019 at par 350,000 350,000
7.25% senior
notes due
2020 at par 500,000 500,000
7.25% senior
notes due
2021 at par 1,000,000 1,000,000
Other 48,718 56,031
------ ------
5,146,344 5,160,370
Less: current
maturities
of debt 31,763 36,885
Long-term
debt $5,114,581 $5,123,485
========== ==========
Calculation
of net debt
Total debt $5,146,344 $5,160,370
Less liquid
assets:
Cash and cash
equivalents 439,655 734,231
Short term
investments 249,754 248,954
------- -------
689,409 983,185
Net debt $4,456,935 $4,177,185
========== ==========
Arch Coal, Inc. and Subsidiaries
Reconciliation of Non-GAAP Measures
(In thousands, except per share data)
Included in the accompanying release,
we have disclosed certain non-GAAP
measures as defined by Regulation G.
The following reconciles these items
to net income and cash flows as
reported under GAAP.
Adjusted EBITDA
Adjusted EBITDA is defined as net
income attributable to the Company
before the effect of net interest
expense, income taxes, depreciation,
depletion and amortization, and the
amortization of acquired sales
contracts. Adjusted EBITDA may
also be adjusted for items that may
not reflect the trend of future
results.
Adjusted EBITDA is not a measure of
financial performance in accordance
with generally accepted accounting
principles, and items excluded from
Adjusted EBITDA are significant in
understanding and assessing our
financial condition. Therefore,
Adjusted EBITDA should not be
considered in isolation, nor as an
alternative to net income, income
from operations, cash flows from
operations or as a measure of our
profitability, liquidity or
performance under generally accepted
accounting principles. We believe
that Adjusted EBITDA presents a
useful measure of our ability to
incur and service debt based on
ongoing operations. Furthermore,
analogous measures are used by
industry analysts to evaluate our
operating performance. In addition,
acquisition related expenses are
excluded to make results more
comparable between periods.
Investors should be aware that our
presentation of Adjusted EBITDA may
not be comparable to similarly
titled measures used by other
companies. The table below shows how
we calculate Adjusted EBITDA.
Three Months Ended June 30, Six Months Ended June 30,
--------------------------- -------------------------
2015 2014 2015 2014
---- ---- ---- ----
(Unaudited) (Unaudited)
Net loss $(168,103) $(96,860) $(281,298) $(220,999)
Benefit from income
taxes (4,071) (34,869) (7,467) (78,480)
Interest expense,
net 98,612 95,924 195,491 190,552
Depreciation,
depletion and
amortization 97,372 102,464 202,246 206,887
Amortization of
acquired sales
contracts, net (1,644) (3,239) (5,034) (6,935)
Asset impairment and
mine closure costs 19,146 1,512 19,146 1,512
Expenses related to
debt restructuring 4,016 - 4,016 -
--- ---
Adjusted EBITDA $45,328 $64,932 $127,100 $92,537
======= ======= ======== =======
Adjusted net loss and adjusted
diluted loss per share
Adjusted net loss and adjusted
diluted loss per common share are
adjusted for the after-tax
impact of asset impairments and
items relating to significant
transactions and are not measures
of financial performance in
accordance with generally
accepted accounting principles.
We believe that adjusted net loss
and adjusted diluted loss per
common share better reflect the
trend of our future results. The
adjustments made to arrive at
these measures are significant in
understanding and assessing our
financial condition. Therefore,
adjusted net loss and adjusted
diluted loss per share should not
be considered in isolation, nor
as an alternative to net loss or
diluted loss per common share
under generally accepted
accounting principles.
Three Months Ended June 30, Six Months Ended June 30,
--------------------------- -------------------------
2015 2014 2015 2014
---- ---- ---- ----
(Unaudited) (Unaudited)
Net loss $(168,103) $(96,860) $(281,298) $(220,999)
Amortization of
acquired sales
contracts, net (1,644) (3,239) (5,034) (6,935)
Asset impairment and
mine closure costs 19,146 1,512 19,146 1,512
Expenses related to
debt restructuring 4,016 - 4,016 -
Tax impact of
adjustment (7,746) 622 (6,526) 1,952
------ --- ------ -----
Adjusted net loss $(154,331) $(97,965) $(269,696) $(224,470)
========= ======== ========= =========
Diluted weighted
average shares
outstanding 212,914 212,225 212,788 212,198
======= ======= ======= =======
Diluted loss per
share $(0.79) $(0.46) $(1.32) $(1.04)
Amortization of
acquired sales
contracts, net (0.01) (0.02) (0.02) (0.03)
Asset impairment and
mine closure costs 0.09 0.01 0.09 0.01
Expenses related to
debt restructuring 0.02 - 0.02 -
Tax impact of
adjustments (0.04) 0.01 (0.03) 0.01
----- ---- ----- ----
Adjusted diluted
loss per share $(0.73) $(0.46) $(1.27) $(1.06)
====== ====== ====== ======
Cash costs per ton
Cash costs per ton exclude the
costs of depreciation, depletion
and amortization and pass-
through transportation costs, and
may be adjusted for other items
that, due to accounting rules,
are classified in "Other
operating (income) expense, net"
on the statement of operations,
but relate directly to the costs
incurred to produce coal. Cash
costs per ton are not measures of
financial performance in
accordance with generally
accepted accounting principles.
We believe cash costs per ton
better reflect our controllable
costs and our operating results
by including all cash costs
incurred to produce coal. The
adjustments made to arrive at
these measures are significant in
understanding and assessing our
financial condition. Therefore,
cash costs per ton should not be
considered in isolation, nor as
an alternative to cost of sales
per ton under generally accepted
accounting principles.
Three Months Ended June 30, Six Months Ended June 30,
--------------------------- -------------------------
2015 2014 2015 2014
---- ---- ---- ----
(Unaudited) (Unaudited)
Cost of sales on
condensed
consolidated
statements of
operations $566,252 $622,137 $1,128,574 $1,308,451
Transportation
costs billed to
customers (44,256) (50,613) (87,329) (157,573)
Settlements of
heating oil
derivatives used
to manage diesel
fuel purchase
price risk 986 1,684 2,210 3,563
Other (other
operating
segments,
operating
overhead, land
management, etc.) (8,566) (3,929) (18,304) (8,741)
------ ------ ------- ------
Total cash costs $514,416 $569,279 $1,025,151 $1,145,700
Total tons sold 30,573 32,663 63,681 64,020
------ ------ ------ ------
Total cash cost per
ton $16.83 $17.43 $16.10 $17.90
====== ====== ====== ======
Logo - http://photos.prnewswire.com/prnh/20120727/CG47668LOGO
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/arch-coal-inc-reports-second-quarter-2015-results-300121018.html
SOURCE Arch Coal, Inc.
