CLOD PEAK : Cloud Peak Energy Inc. Announces Results for Full Year and Fourth Quarter 2010
02/24/2011| 04:15pm US/Eastern
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Cloud Peak Energy Inc. (NYSE:CLD), the third-largest U.S. coal producer
and the only pure-play Powder River Basin (PRB) coal company, today
announced results for the full year and fourth quarter 2010.
2010 Full Year Highlights
Record Adjusted EBITDA1 of $322.7 million.
Cash flow from operations of $324.8 million.
Income from continuing operations of $117.2 million, Adjusted EPS1
of $1.62 and EPS of $0.98.
Strong Asian export demand resulted in record production at our Spring
Creek mine. Recovering domestic demand allowed record production at
our Antelope mine.
Year-end coal reserves of 970 million tons – equivalent to over 10
years' annual production at current production levels.
Adjusted EBITDA1 was $322.7 million for 2010, a new record,
compared to $320.6 million in the prior year. Income from continuing
operations was $117.2 million in our first year as a public company,
compared to $182.5 million in the prior year. Adjusted earnings per share1
was $1.62. Earnings per share was $0.98.
?Cloud Peak Energy delivered a very strong first year as a new public
company. Our Adjusted EBITDA was the best in our history, and our safety
performance improved once again. We expanded our Asian exports to 3.3
million tons from 1.6 million tons in 2009 as export demand increased.?
said Colin Marshall, President and Chief Executive Officer. ?We
generated $324.8 million in cash flow from operations supported by our
disciplined sales strategy, focus on continuous operating improvements
and tight cost controls. We now have a strong base on which to develop
our business following the successful year which was capped off with the
secondary offering in December to sell all of Rio Tinto's remaining
ownership interests?.
Operating Highlights
Q4
Q4
Full Year
Full Year
2010
2009
2010
2009
Tons produced (in millions)1
23.4
23.0
93.8
91.0
Tons sold (in millions)
24.1
25.6
96.9
103.3
Average revenue per ton1
$
12.35
$
11.30
$
12.32
$
11.79
Average cost of product sold per ton1
$
9.05
$
7.95
$
8.57
$
7.94
1 Represents the three company-operated mines
Full Year 2010
Production from our three company-operated mines was 93.8 million tons,
up from 91.0 million tons in 2009. The increased production was a result
of the strong international demand which increased our Asian exports
from 1.6 million tons to 3.3 million tons, allowing record production
from our Spring Creek mine. Domestically, the cold start to the year and
hot summer reduced stockpiles of PRB coal throughout the year. At the
same time, customers re-built their forward contracted positions which
they had reduced during the uncertainty of 2009.
Adjusted EBITDA rose to a record $322.7 million, driven by higher export
volumes, increased realized sales prices, and tight cost controls.
Average revenue per ton increased to $12.32. Average cost per ton was
$8.57, an increase over the prior year driven primarily by higher
royalties and severance taxes resulting from higher sales prices, higher
diesel costs and higher strip ratios as mining progresses. The full year
margin per ton was $3.75.
Income from continuing operations was $117.2 million, compared to $182.5
million in the prior year. The prior year included a $33.6 million post
tax contribution from a long term broker contract which expired in the
first quarter of 2010 and only contributed $3.2 million in 2010. Income
from continuing operations in 2010 was also reduced by a non cash, non
operational post tax charge totaling $25.1 million related to the
estimated future liability to Rio Tinto under the Tax Receivable
Agreement established at the time of the IPO.
Fourth Quarter 2010
Fourth quarter 2010 Adjusted EBITDA of $69.6 million was $3.2 million
higher than the $66.4 million in fourth quarter of the prior year.
Income from continuing operations was $29.7 million, compared to $35.2
million in the prior year. Production from the three company-operated
mines in the fourth quarter of 2010 was 23.4 million tons compared to
23.0 million tons for the fourth quarter 2009.
Fourth quarter 2010 revenues increased $8.9 million to $345.8 million
from $336.9 million in the fourth quarter of 2009. Average revenue per
ton of coal sold from the company-operated mines in the fourth quarter
of 2010 increased to $12.35 from $11.30 in 2009. Average cost per ton
increased to $9.05 in the quarter due to rising diesel costs, higher
strip ratio, and higher employee bonus accruals following the company's
strong performance against financial and operating targets.
Health, Safety and Environment Record
According to Mine Safety and Health Administration (MSHA) data, during
2010, Cloud Peak Energy's All Injury Frequency Rate (AIFR) of 0.58 was
among the lowest of the ten largest U.S. coal producers. The company's
2009 MSHA AIFR was 0.66. The three company operated mines have not
received notice of any environmental violations under the Surface Mining
Control and Reclamation Act (SMCRA) since October 2002.
Balance Sheet and Cash Flow
Cash flow from operations totaled $324.8 million for 2010. Capital
expenditures (including capitalized interest) were $91.6 million which
included $35.5 million for the purchase of surface land and private coal
and $3.9 million for the Lease By Modification payment for Spring Creek
mine coal reserves. Additionally, we paid total cash installments of
approximately $64 million for continuing Lease By Application
installments for previously awarded federal coal leases.
Unrestricted cash on hand as of December 31, 2010, was $340.1 million.
Restricted cash, which secures a portion of the company's future
reclamation obligations, was $182.1 million, down from $218.4 million on
September 30, 2010, as collateral requirements were reduced. Cloud Peak
Energy's balance sheet is well positioned with total available liquidity
of almost $730 million as of December 31, 2010.
The company's long-term debt as of December 31, 2010, net of original
issue discount, was $595.7 million for the senior notes. Federal coal
lease obligations, including the current portion, were $118.3 million,
as of December 31, 2010.
Outlook
Cloud Peak Energy sees continuing recovery in domestic electricity
generation and growing export demand for its Spring Creek coal. The
Spring Creek mine is one of the most northern mines in the PRB and
thereby benefits from a shorter rail haul to northwest export terminals.
Coal from our Spring Creek mine also has favorable energy content
compared to southern PRB mines. These two factors leave Cloud Peak
Energy well placed to meet growing Asian export demand assuming
additional west coast terminal capacity is built.
2011 expected production from the three company-operated mines is 93 to
96 million tons and is essentially fully sold, consistent with our sales
strategy. Assuming constant prices of $14.40 per ton for 8800 Btu
quality coal and $12.20 per ton for 8400 Btu quality coal for indexed
tons, the expected total realized price for 2011 would be approximately
$13.05 per ton. For 2012, we have currently contracted to sell 70
million tons from our three operated mines. Of this committed 2012
production, 56 million tons are under fixed price contracts with a
weighted average price of $13.08.
Exports from the Spring Creek mine through the Westshore terminal in
Vancouver are expected to approximate three million tons this year,
driven by the strong demand from the company's Asian utility customers.
In addition, due to the recent spike in seaborne coal prices we were
able to contract additional export sales to be shipped through the
Ridley terminal in Prince Rupert, British Columbia by Q1 2012. We are
expecting total export shipments to be around four million tons. Exports
through the Ridley terminal will incur significantly higher railing
costs than through Westshore.
Marshall stated, ?After a very successful first year as a public
company, our solid cash position and improving business outlook leaves
us well positioned to invest in our business, consider new leases and
pursue growth opportunities. Our proportionally low long-term
liabilities, both reclamation and employee related, combined with the
liquidity available under our revolving credit facility, further enhance
our balance sheet strength.?
Guidance – 2011 Financial and Operational Estimates
The following table provides the company's current outlook and
assumptions for selected 2011 financial and operational metrics:
Item
Estimate or Estimated Range
Coal production for our three operated mines
93 – 96 million tons
Committed sales with fixed prices
87 million tons
Anticipated realized price of produced coal1
Approximately $13.05 per ton
Average cost of produced coal2
$8.80 - $9.40 per ton
Additional operating income
$20 - $35 million
Selling, general and administrative expenses
$55 - $65 million
Interest expense
$55 - $65 million
Depreciation, depletion, amortization and accretion
$115 - $125 million
Effective income tax rate
Approximately 35%
Capital expenditures (excludes federal coal leases)3
$100 - $140 million
Committed federal coal lease payments
$63.8 million
1 Assumes prices of $14.40 per ton for 8800 Btu coal and
$12.20 per ton for 8400 Btu coal applied to indexed tons 2
Represents average Cost of Product Sold for produced coal for our three
operated mines. 3 Includes capitalized interest.
Conference Call Details
A conference call with management is scheduled at 5:00 p.m. ET on
February 24, 2011, to review the results and current business
conditions. The call will be web cast live over the Internet from the
company's Web site at www.cloudpeakenergy.com
under ?Investor Relations.? Participants should follow the instructions
provided on the Web site for downloading and installing the audio
applications necessary to join the web cast. Interested individuals also
can access the live conference call via telephone at 866.713.8566
(domestic) or 617.597.5325 (international) and entering pass code
25264791.
Following the live web cast, a replay will be available on the company's
Web site for seven days. A telephonic replay will also be available
approximately two hours after the call and can be accessed by dialing
888-286-8010 (domestic) or 617-801-6888 (international) and entering
pass code 20816520. The telephonic replay will be available for seven
days.
About Cloud Peak Energy?
Cloud Peak Energy Inc. (NYSE:CLD) is headquartered in Wyoming and
is the third largest U.S. coal producer and the only pure-play Powder
River Basin (PRB) coal company. As one of the safest coal producers in
the nation, Cloud Peak Energy specializes in the production of low
sulfur, subbituminous coal. The company owns and operates three surface
coal mines in the PRB, the lowest cost major coal producing region in
the nation. The Antelope and Cordero Rojo mines are located in Wyoming
and the Spring Creek mine is located near Decker, Montana. With
approximately 1,500 employees, the company is widely recognized for its
exemplary performance in its safety and environmental programs. Cloud
Peak Energy is a sustainable fuel supplier for approximately 4 percent
of the nation's electricity.
This release and our related presentation contain "forward-looking
statements" within the meaning of the safe harbor provisions of Section
27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. Forward-looking statements are not statements of
historical facts and often contain words such as "may," "will,"
"expect," "believe," "anticipate," "plan," "estimate," "seek," "could,"
"should," "intend," "potential," or words of similar meaning.
Forward-looking statements are based on management's current
expectations or beliefs, as well as assumptions and estimates regarding
our company, industry, economic conditions, government regulations and
energy policies and other factors. Forward-looking statements may
include, for example, (1) our outlook for 2011 and future periods for
our company, PRB coal and the coal industry in general, and our 2011
operational and financial guidance; (2) anticipated improvements in
overall economic conditions and demand by domestic and foreign
utilities; (3) prices for natural gas and other alternative sources of
energy used to generate electricity; (4) coal stockpile levels and the
impacts on future demand; (5) our plans to replace and/or grow our coal
tons; (6) business development and growth initiatives; (7) operational
plans for our mines; (8) our cost management efforts; (9) industry
estimates of the EIA and other third party sources; (10) estimated Tax
Receivable Agreement liabilities; and (11) other statements regarding
our plans, strategies, prospects and expectations concerning our
business, operating results, financial condition and other matters that
do not relate strictly to historical facts. These statements are subject
to significant risks, uncertainties, and assumptions that are difficult
to predict and could cause actual results to differ materially from
those expressed or implied in the forward-looking statements. Factors
that could adversely affect our future results include, for example, (a)
future economic conditions; (b) demand for our coal by the domestic
electric generation industry, export demand and terminal capacity and
the price we receive for our coal; (c) reductions or deferrals of
purchases by major customers and our ability to renew sales contracts;
(d) environmental, health, safety, endangered species or other
legislation, regulations, court decisions or government actions, or
related third-party regulatory legal challenges, including any new
requirements affecting the use, demand or price for coal or imposing
additional costs, liabilities or restrictions on our mining operations;
(e) public perceptions, third-party regulatory legal challenges or
governmental actions and energy policies relating to concerns about
climate change, including emissions restrictions and governmental
subsidies that make wind, solar or other alternative fuel sources more
cost-effective and competitive with coal; (f) operational, geological,
equipment, permit, labor, weather-related and other risks inherent in
surface coal mining; (g) our ability to efficiently conduct our mining
operations, (h) transportation and export terminal availability,
performance and costs; (i) availability, timing of delivery and costs of
key supplies, capital equipment or commodities such as diesel fuel,
steel, explosives and tires; (j) our ability to acquire future coal tons
through the federal LBA process and necessary surface rights in a timely
and cost-effective manner and the impact of third-party regulatory legal
challenges, (k) access to capital and credit markets and availability
and costs of credit, surety bonds, letters of credit, and insurance; (l)
the impact of direct and indirect competition from coal producers and
competing sources of energy, domestically and internationally; (m)
litigation and other contingent liabilities; and (n) other risk factors
described from time to time in the reports and registration statements
we file with the Securities and Exchange Commission ("SEC"), including
those in Item 1A - Risk Factors in our most recent Form 10-K and any
updates thereto in our Forms 10-Q and current reports on Forms 8-K.
There may be other risks and uncertainties that are not currently known
to us or that we currently believe are not material. We make
forward-looking statements based on currently available information, and
we assume no obligation to, and expressly disclaim any obligation to,
update or revise publicly any forward-looking statements made in this
release or our related presentation, whether as a result of new
information, future events or otherwise, except as required by law.
Non-GAAP Financial Measures
This release and our related presentation include the non-GAAP financial
measures of (1) Adjusted EBITDA and (2) Adjusted Earnings Per Share
("Adjusted EPS"). Adjusted EBITDA and Adjusted EPS are intended to
provide additional information only and do not have any standard meaning
prescribed by generally accepted accounting principles in the U.S., or
GAAP. A quantitative reconciliation of Adjusted EBITDA to income from
continuing operations and Adjusted EPS to EPS (as defined below) is
found in the tables accompanying this release.
EBITDA represents income from continuing operations before (1) interest
income (expense) net, (2) income tax provision, (3) depreciation and
depletion, (4) amortization, and (5) accretion. Adjusted EBITDA
represents EBITDA as further adjusted to exclude specifically identified
items that management believes do not directly reflect our core
operations. For the periods presented in this release, the specifically
identified items are the income statement impacts of: (1) the tax
agreement and (2) our significant broker contract that expired in the
first quarter of 2010.
Adjusted EPS represents diluted earnings (loss) per share from
continuing operations attributable to controlling interest ("EPS"),
adjusted to exclude the estimated per share impact of the same
specifically identified items used to calculate Adjusted EBITDA and
described above.
Adjusted EBITDA is an additional tool intended to assist our management
in comparing our performance on a consistent basis for purposes of
business decision-making by removing the impact of certain items that
management believes do not directly reflect our core operations.
Adjusted EBITDA is a metric intended to assist management in evaluating
operating performance, comparing performance across periods, planning
and forecasting future business operations and helping determine levels
of operating and capital investments. Period-to-period comparisons of
Adjusted EBITDA are intended to help our management identify and assess
additional trends potentially impacting our company that may not be
shown solely by period-to-period comparisons of income from continuing
operations. Adjusted EBITDA may also be used as part of our incentive
compensation program for our executive officers and others.
We believe Adjusted EBITDA and Adjusted EPS are also useful to
investors, analysts and other external users of our consolidated
financial statements in evaluating our operating performance from period
to period and comparing our performance to similar operating results of
other relevant companies. Adjusted EBITDA allows investors to measure a
company's operating performance without regard to items such as interest
expense, taxes, depreciation and depletion, amortization and accretion
and other specifically identified items that are not considered to
directly reflect our core operations. Similarly, we believe our use of
Adjusted EPS provides an appropriate measure to use in assessing our
performance across periods given that this measure provides an
adjustment for certain specifically identified significant items that
are not considered to directly reflect our core operations, the
magnitude of which may vary drastically from period to period and,
thereby, have a disproportionate effect on the earnings per share
reported for a given period.
Our management recognizes that using Adjusted EBITDA and Adjusted EPS as
performance measures has inherent limitations as compared to income from
continuing operations, EPS or other GAAP financial measures, as these
non-GAAP measures exclude certain items, including items that are
recurring in nature, which may be meaningful to investors. Adjusted
EBITDA and Adjusted EPS should not be considered in isolation and do not
purport to be alternatives to income from continuing operations, EPS or
other GAAP financial measures as a measure of our operating performance.
Because not all companies use identical calculations, our presentations
of Adjusted EBITDA and Adjusted EPS may not be comparable to other
similarly titled measures of other companies. Moreover, our presentation
of Adjusted EBITDA is different than EBITDA as defined in our debt
financing agreements.
CLOUD PEAK ENERGY INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(dollars in thousands, except per share amounts)
Year Ended December 31,
2010
2009
2008
Revenues
$
1,370,761
$
1,398,200
$
1,239,711
Costs and expenses
Cost of product sold (exclusive of depreciation, depletion,
amortization and accretion, shown separately)
978,914
933,489
894,036
Depreciation and depletion
100,023
97,869
88,972
Amortization
3,197
28,719
45,989
Accretion
12,499
12,587
12,742
Selling, general and administrative expenses
63,594
69,835
70,485
Asset impairment charges
659
698
2,551
Total costs and expenses
1,158,886
1,143,197
1,114,775
Operating income
211,875
255,003
124,936
Other income (expense)
Interest income
565
320
2,865
Interest expense
(46,938
)
(5,992
)
(20,376
)
Tax agreement expense
(19,669
)
?
?
Other, net
157
9
1,715
Total other expense
(65,885
)
(5,663
)
(15,796
)
Income from continuing operations before income tax provision
and earnings from unconsolidated affiliates
145,990
249,340
109,140
Income tax provision
(31,982
)
(68,249
)
(25,318
)
Earnings from unconsolidated affiliates, net of tax
3,189
1,381
4,518
Income from continuing operations
117,197
182,472
88,340
Income (loss) from discontinued operations, net of tax
?
211,078
(25,215
)
Net income
117,197
393,550
63,125
Less: Net income attributable to noncontrolling interest
83,460
11,849
?
Net income attributable to controlling interest
$
33,737
$
381,701
$
63,125
Amounts attributable to controlling interest common shareholders:
Income from continuing operations
$
33,737
$
170,623
$
88,340
Income (loss) from discontinued operations
?
211,078
(25,215
)
Net income
$
33,737
$
381,701
$
63,125
Earnings (loss) per common share attributable to controlling
interest:
Basic
Income from continuing operations
$
0.98
$
3.01
$
1.47
Income (loss) from discontinued operations
?
3.73
(0.42
)
Net income
$
0.98
$
6.74
$
1.05
Weighted-average shares outstanding – basic
34,305,205
56,616,986
60,000,000
Diluted
Income from continuing operations
$
0.98
$
2.97
$
1.47
Income (loss) from discontinued operations
?
3.52
(0.42
)
Net income
$
0.98
$
6.49
$
1.05
Weighted-average shares outstanding – diluted
34,305,205
60,000,000
60,000,000
CLOUD PEAK ENERGY INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(dollars in thousands, except share data)
December 31,
2010
2009
ASSETS
Current assets
Cash and cash equivalents
$
340,101
$
268,316
Restricted cash
182,072
80,180
Accounts receivable
65,173
82,809
Due from related parties
434
8,340
Inventories
64,970
64,199
Deferred income taxes
21,552
280
Other assets
17,449
7,321
Total current assets
691,751
511,445
Non-current assets
Property, plant and equipment, net
1,008,337
987,143
Intangible assets, net
?
3,197
Goodwill
35,634
35,634
Deferred income taxes
140,985
100,520
Other assets
38,400
39,657
Total assets
$
1,915,107
$
1,677,596
LIABILITIES AND EQUITY
Current liabilities
Accounts payable
$
81,975
$
57,304
Royalties and production taxes
127,038
102,912
Accrued expenses
51,197
47,763
Current portion of tax agreement liability
18,226
758
Current portion of federal coal lease obligations
54,630
50,768
Other liabilities
4,880
4,514
Total current liabilities
337,946
264,019
Non-current liabilities
Tax agreement liability, net of current portion
171,885
53,751
Senior notes
595,684
595,321
Federal coal lease obligations, net of current portion
63,659
118,289
Asset retirement obligations, net of current portion
182,170
175,940
Other liabilities
32,564
24,798
Total liabilities
1,383,908
1,232,118
Equity
Common stock ($0.01 par value; 200,000,000 shares authorized; 60,878,317
and 31,449,002 shares issued and outstanding at December
31, 2010 and 2009, respectively)
609
314
Additional paid-in capital
502,952
251,083
Retained earnings
42,296
8,459
Accumulated other comprehensive loss
(14,658
)
(6,951
)
Total Cloud Peak Energy Inc. shareholders' equity
531,199
252,905
Noncontrolling interest
?
192,573
Total equity
531,199
445,478
Total liabilities and equity
$
1,915,107
$
1,677,596
CLOUD PEAK ENERGY INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(dollars in thousands)
Year Ended December 31,
Operating activities
2010
2009
2008
Net income
$
117,197
$
393,550
$
63,125
Adjustments to reconcile income to net cash provided by operating
activities:
Income or loss from discontinued operations, net of tax
?
(211,078
)
25,215
Depreciation and depletion
100,023
97,869
88,972
Amortization
3,197
28,719
45,989
Accretion
12,499
12,587
12,742
Asset impairment charges
659
698
2,551
Earnings from unconsolidated affiliates
(3,189
)
(1,381
)
(4,518
)
Distributions of income from equity investments
35
4,000
4,750
Deferred income taxes
28,503
13,595
(18,697
)
Expenses paid by affiliates
?
?
31,216
Stock compensation expense
7,234
1,919
727
Change in tax agreement liability
19,669
?
?
Interest expense converted to principal
?
?
16,755
Other, net
4,718
750
1,336
Changes in operating assets and liabilities:
Accounts receivable, net
17,636
(3,358
)
12,609
Inventories
(638
)
(7,638
)
(5,707
)
Due to or from related parties
7,906
103,414
(129,252
)
Other assets
(10,090
)
(1,097
)
(4,377
)
Accounts payable and accrued expenses
27,040
28,890
9,715
Tax agreement liability
(1,685
)
?
?
Asset retirement obligations
(5,938
)
(4,855
)
(3,151
)
Net cash provided by operating activities from continuing
operations
324,776
456,584
150,000
Investing activities
Purchases of property, plant and equipment
(91,639
)
(119,742
)
(138,104
)
Payment on refundable deposit
?
?
(11,806
)
Return of refundable deposit
?
?
33,156
Return of restricted cash
116,533
?
?
Restricted cash deposit
(218,425
)
(80,180
)
?
Change in cash advances to affiliate
?
(217,468
)
(35,025
)
Other, net
1,511
313
(1,880
)
Net cash used in investing activities from continuing operations
(192,020
)
(417,077
)
(153,659
)
Financing activities
Borrowings on long-term debt
?
595,284
40,000
Principal repayments on federal coal leases
(50,768
)
(68,583
)
(39,415
)
Payment of debt issuance costs
?
(26,585
)
?
Proceeds from issuance of common stock
?
433,755
?
Distributions to Rio Tinto
(10,203
)
(1,516,058
)
(3,448
)
Net cash used in financing activities from continuing operations
(60,971
)
(582,187
)
(2,863
)
Net cash provided by (used in) continuing operations
71,785
(542,680
)
(6,522
)
Cash flows from discontinued operations
Net cash from operating activities
?
36,029
50,320
Net cash from investing activities
?
759,032
(41,231
)
Net cash from financing activities
?
?
(10,248
)
Net cash provided by (used in) discontinued operations
?
795,061
(1,159
)
Net increase (decrease) in cash and cash equivalents
71,785
252,381
(7,681
)
Cash and cash equivalents at beginning of year
268,316
15,935
23,616
Cash and cash equivalents at end of year
$
340,101
$
268,316
$
15,935
Supplemental cash flow disclosures for continuing operations:
Interest paid
$
69,317
$
17,606
$
4,410
Income taxes paid (refunded), net
9,120
79,089
(348
)
Supplemental noncash investing and financing activities from
continuing operations:
Obligations to acquire federal coal leases and other mineral rights
$
?
$
37,424
$
168,009
Conversion of debt to equity
?
?
547,382
Noncash capital contributions from Rio Tinto America
?
158,400
46,078
CLOUD PEAK ENERGY INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP MEASURES
Adjusted EBITDA
Year Ended December 31,
2010
2009
2008
2007
2006
(dollars in thousands)
Income from continuing operations
$
117,197
$
182,472
$
88,340
$
53,789
$
40,537
Interest income
(565
)
(320
)
(2,865
)
(7,302
)
(3,604
)
Interest expense
46,938
5,992
20,376
40,930
38,785
Income tax provision
31,982
68,249
25,318
18,050
11,717
Depreciation and depletion
100,023
97,869
88,972
80,133
59,352
Amortization
3,197
28,719
45,989
34,512
34,957
Accretion
12,499
12,587
12,742
12,212
10,088
EBITDA
311,271
395,568
278,872
232,324
191,832
Tax agreement expense
19,669
?
?
?
?
Expired long-term broker contract
(8,207
)
(74,986
)
(71,643
)
(72,479
)
(72,804
)
Adjusted EBITDA
$
322,733
$
320,582
$
207,229
$
159,845
$
119,028
Three Months Ended December 31,
2010
2009
(dollars in thousands)
Income from continuing operations
$
29,749
$
35,204
Interest income
(154
)
(92
)
Interest expense
10,752
4,985
Income tax provision
1,770
8,361
Depreciation and depletion
24,811
29,486
Amortization
?
3,949
Accretion
2,596
4,185
EBITDA
69,524
86,078
Expired long-term broker contract
117
(19,700
)
Adjusted EBITDA
$
69,641
$
66,378
CLOUD PEAK ENERGY INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP MEASURES
Adjusted EPS
Year Ended December 31,
2010
2009
2008
2007
2006
Diluted earnings per common share attributable to controlling
interest from continuing operations
$
0.98
$
2.97
$
1.47
$
0.90
$
0.68
Expired significant broker contract
(0.09
)
(0.49
)
(0.41
)
(0.44
)
(0.44
)
Tax agreement expense
0.57
?
?
?
?
Change in net value of deferred tax assets
0.16
?
?
?
?
Adjusted EPS
$
1.62
$
2.48
$
1.06
$
0.46
$
0.24
Diluted weighted-average shares outstanding
34,305,205
60,000,000
60,000,000
60,000,000
60,000,000
Three Months Ended December 31,
2010
2009
Diluted earnings per common share attributable to controlling
interest from continuing operations
$
0.28
$
0.50
Expired significant broker contract
0.01
(0.21
)
Adjusted EPS
$
0.29
$
0.29
Diluted weighted-average shares outstanding
45,300,000
46,578,000
Cloud Peak Energy Inc. Karla Kimrey, 720-566-2932 Vice
President, Investor Relations
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