HOUSTON, Feb. 12, 2015 /PRNewswire/ -- Natural Resource Partners L.P. (NYSE:NRP) today reported 2014 revenues and other income of $399.8 million compared to $358.1 million for 2013. Net income attributable to the limited partners for 2014 was $106.7 million, or $0.94 per unit, versus $168.6 million and $1.54 per unit for 2013. Results for 2014 included a non-cash charge of $26.2 million, or $0.23 per unit, for the impairment of several coal and aggregates properties. Distributable cash flow for 2014 was $217.7 million compared to $309.4 million for 2013. Distributable cash flow in 2013 included a one-time special distribution of $44.8 million from OCI Wyoming and an additional $9.5 million in cash from the sale of assets. NRP also reported adjusted EBITDA of $300.3 million for 2014 versus $340.3 million for 2013. For reconciliations of the non-GAAP measures of distributable cash flow, adjusted EBITDA and net income per unit before considering non-cash impairments, see "Non-GAAP Financial Measures" and the reconciliation tables elsewhere in this release.
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For the quarter ended December 31, 2014, revenues totaled $137.3 million compared to $94.7 million reported for the same period 2013. The increase in revenues was principally due to contributions from the VantaCore construction aggregates business and producing oil and gas properties in the Sanish Field, both of which were acquired during the fourth quarter. Net income attributable to the limited partners for the fourth quarter was $8.5 million, or $0.07 per unit, compared to $46.0 million and $0.42 per unit for the fourth quarter 2013. Results for the quarter included a non-cash charge of $20.6 million, or $0.17 per unit, for the impairment of several coal and aggregates properties. Distributable cash flow for the fourth quarter was $56.1 million and adjusted EBITDA was $80.1 million, compared to $69.6 million and $69.1 million, respectively, for the fourth quarter 2013.
"In this challenging commodity price environment, our 2014 financial and operational results met or exceeded our guidance," said Wyatt Hogan, President of NRP. "Our performance in 2014 is a testament not only to our NRP team and the quality and diversity of our assets, but also to the exceptional efforts of our coal lessees, oil and gas operators, OCI Wyoming soda ash operations and our recently acquired VantaCore construction aggregates business. In 2014, we made two significant acquisitions that have established NRP as a diversified natural resource company. Nevertheless, as we look forward to 2015, the markets for coal and oil and gas remain difficult, and we will continue to manage our business with a long-term perspective through this cycle."
Highlights Quarter Ended For the Year Ended ------------- ------------------ December 31, December 31, % December 31, December 31, % 2014 2013 Change 2014 2013 Change ---- ---- ------ ---- ---- ------ (in thousands except per (in thousands except per unit and per ton) unit and per ton) ---------------- ---------------- Revenues -------- Total revenues and other income $137,273 $94,744 45% $399,752 $358,117 12% ------------------ -------- ------- --- -------- -------- --- Coal production (tons) 12,986 11,089 17% 50,459 53,292 -5% --------------------- ------ ------ --- ------ ------ --- Average coal royalty revenue per ton $3.39 $4.30 -21% $3.65 $3.99 -9% -------------------- ----- ----- --- ----- ----- --- Total coal related revenues $53,797 $66,958 -20% $226,724 $274,194 -17% ------------------ ------- ------- --- -------- -------- --- Aggregates and industrial minerals related revenue $44,510 $3,817 1066% $54,124 $13,479 302% -------------------- ------- ------ ---- ------- ------- --- Oil and gas related revenue $22,085 $7,338 201% $59,566 $17,080 249% ------------------- ------- ------ --- ------- ------- --- Equity and other unconsolidated investment income $12,551 $12,018 4% $41,416 $34,186 21% ------------------ ------- ------- --- ------- ------- --- Operating Expenses $106,223 $27,992 279% $210,833 $121,881 73% ------------------ -------- ------- --- -------- -------- --- Net income ---------- Net income to limited partners $8,472 $46,041 -82% $106,653 $168,636 -37% --------------------- ------ ------- --- -------- -------- --- Net income per unit $0.07 $0.42 -83% $0.94 $1.54 -39% ------------------- ----- ----- --- ----- ----- --- Average units outstanding 121,449 109,812 11% 113,262 109,584 3% ------------- ------- ------- --- ------- ------- --- Net income before considering any impairments(1) ------------------------------------- Net income to limited partners 28,645 46,041 -38% 132,338 169,356 -22% --------------------- ------ ------ --- ------- ------- --- Net income per unit $0.24 $0.42 -43% $1.17 $1.55 -25% ------------------- ----- ----- --- ----- ----- --- Distributable cash flow(1) $56,066 $69,646 -19% $217,710 $309,394 -30% ------------------ ------- ------- --- -------- -------- --- Adjusted EBITDA(1) $80,143 $69,092 16% 300,322 340,345 -12% ----------------- ------- ------- --- ------- ------- --- (1) See "Non-GAAP Financial Measures" and reconciliation tables at the end of the release.
Twelve Months 2014 compared to Twelve Months 2013
Revenues and Other Income
Total revenues and other income for 2014 increased 12% to $399.8 million from the same period of 2013 due to significant increases in aggregates related revenues, oil and gas related revenues and equity income from NRP's soda ash business. These increases, mainly due to acquisitions that occurred in both 2013 and 2014, more than offset the $47.5 million decline in coal related revenues. Coal related revenues decreased mainly due to decreases in prices for both metallurgical and thermal coal equating to a 9% reduction in average coal royalty revenue per ton; a 5% decline in coal production volumes; and a gain on sale of assets recorded in 2013. Metallurgical coal represented 32% of coal production and 40% of coal royalty revenues for 2014.
NRP benefitted from its diversification into other asset classes, as revenues and other income other than coal related revenues increased to 43% of total revenues and other income in 2014 as compared to 23% of total revenues and other income in 2013. The most significant increase occurred in oil and gas revenues, which increased by $42.5 million due primarily to a full year of production realized on the two acquisitions that occurred in 2013 and the addition of six weeks of revenues accrued for the Sanish Field assets in the Williston Basin in the fourth quarter 2014. NRP's average realized oil price in the Williston Basin, after differentials to WTI, was $77.85 in 2014. Aggregates related revenues increased $40.6 million due to the revenues realized for VantaCore's construction aggregates business also purchased in the fourth quarter 2014. NRP also recognized an increase related to the equity income recognized from the soda ash business. Equity and other unconsolidated income increased $7.2 million, most of which was due to improved operating revenues.
Operating Expenses
Total operating expenses increased $89.0 million to $210.8 million, including non-cash impairments of $26.2 million taken in 2014 and $0.7 million taken in 2013. Although NRP still derives significant revenues from higher margin royalty assets, the acquisition of operating companies such as VantaCore in addition to non-operated oil and and gas interests have resulted in increased operating expenses for NRP. NRP reported aggregates operating expenses of $32.3 million related to VantaCore's construction aggregates business acquired in the fourth quarter and $8.4 million of additional oil and gas operating expenses. In addition, property, franchise and other taxes increased $4.8 million. Depreciation, depletion and amortization increased $15.5 million resulting from more significant oil and gas operations.
Net Income
Net income attributable to the limited partners decreased $61.9 million to $106.7 million, and net income per unit decreased $0.60 compared to the 2013 period. Before considering non-cash impairments, net income to the limited partners decreased $37.1 million to $132.3 million for 2014 from $169.4 million in 2013. Before considering non-cash impairments, net income per unit was $1.17 versus $1.55 for 2013. Impacting net income per unit was a 3.7 million unit increase in the weighted average number of units outstanding in 2014 versus the same period in 2013.
Distributable Cash Flow
Distributable cash flow decreased by $91.7 million to $217.7 million due mainly to a $44.8 million special distribution received from OCI Wyoming in 2013; declines in the coal business resulting in a $36.3 million decrease in net cash provided by operations relative to 2013; an additional $21.0 million of interest paid in 2014; and a $9.5 million difference in proceeds from the sale of assets.
Adjusted EBITDA
Adjusted EBITDA declined 12% in 2014 to $300.3 million from $340.3 million generated in 2013. The decrease is mainly related to the special distribution received in 2013 from OCI Wyoming.
Fourth Quarter 2014 compared to Third Quarter 2014
Highlights Quarter Ended ------------- December 31 September 30 % Change ----------- ------------ -------- (in thousands, except per ton and per unit) ------------------------------ Revenues and other income ------------------------- Total revenues and other income $137,273 $91,609 50% ------------------ -------- ------- --- Coal production (tons) 12,986 13,370 -3% --------------------- ------ ------ --- Average coal royalty revenue per ton $3.39 $3.80 -11% -------------------- ----- ----- --- Total coal related revenue $53,797 $65,193 -17% ------------------ ------- ------- --- Aggregates and industrial minerals related revenue $44,510 $2,655 1576% -------------------- ------- ------ ---- Oil and gas related revenue $22,085 $9,601 130% ------------------- ------- ------ --- Equity and other unconsolidated investment income $12,551 $9,685 30% ------------------ ------- ------ --- Operating expenses $106,223 $36,582 190% ------------------ -------- ------- --- Net income ---------- Net income to limited partners $8,472 $35,450 -76% --------------------- ------ ------- --- Net income to the limited partners, before considering any impairments(1) $28,645 $35,450 -19% ------------------- ------- ------- --- Net income per unit $0.07 $0.32 -78% ------------------- ----- ----- --- Net income per unit, before considering any impairments(1) $0.24 $0.32 -25% -------------------- ----- ----- --- Average units outstanding 121,449 111,244 9% ------------- ------- ------- --- Distributable cash flow(1) $56,066 $57,773 -3% ------------------ ------- ------- --- Adjusted EBITDA(1) $80,143 $74,261 8% ----------------- ------- ------- --- (1) See "Non-GAAP Financial Measures" and reconciliation tables at the end of the release.
Revenues and Other Income
Total revenues and other income for the fourth quarter increased 50% to $137.3 million from the third quarter mainly due to revenue from VantaCore's construction aggregates business of $42.1 million, oil and gas revenues of $12.5 million due to increased production and activity from recent acquisitions and $2.9 million from improved soda ash operations offset by decreases in coal related revenues. Average coal royalty revenue per ton decreased 11%, and coal production volumes decreased modestly.
Operating Expenses
Operating expenses increased $69.6 million due to aggregates operating expenses associated with VantaCore of $32.3 million, increased depreciation, depletion and amortization expenses of $11.6 million, increased general and administrative expenses due to additional personnel and expenses related to the fourth quarter acquisitions and $20.6 million of non-cash impairments recorded in the fourth quarter.
Net Income
Net income to the limited partners and net income per unit decreased 76% and 78% respectively in the fourth quarter from the previous quarter. Before considering the non-cash impairment of $20.6 million, net income to the limited partners decreased $6.8 million or 19% to $28.6 million mainly due to increased interest expense of $3.6 million related to the two fourth quarter acquisitions.
Distributable Cash Flow
Distributable cash flow decreased $1.7 million in the fourth quarter to $56.1 million.
Adjusted EBITDA
Adjusted EBITDA for the fourth quarter 2014 increased $5.8 million to $80.1 million over the $74.3 million generated in the third quarter 2014.
Acquisitions
In 2014, NRP invested approximately $540 million in non-coal-related acquisitions in an effort to diversify its revenues. Those acquisitions included VantaCore, a construction aggregates company that now places NRP as one of the top 25 aggregates producers in the nation, and the purchase of non-operated oil and gas working interests in the Sanish Field in the Williston Basin.
2015 Outlook and Guidance
NRP expects its coal business to be down slightly from 2014 results and expects its soda ash business to improve over 2014. NRP's aggregates-related revenues in 2015 are expected to increase substantially over 2014 due to the VantaCore acquisition made in the fourth quarter. NRP's interests in oil and natural gas properties remain a small portion of NRP's business, and oil and gas revenues are expected to remain flat as compared to 2014, with increased production offset by significantly lower prices. NRP will continue to monitor the development programs of the operators of its Williston Basin non-operated working interest properties and manage the capital expenditures associated with these properties by only participating in wells that are expected to provide acceptable economic returns.
In spite of the expected increase in revenues, adjusted EBITDA is expected to remain relatively flat due to the lower margins of the VantaCore construction aggregates business.
Distributable cash flow for 2015 is estimated to be $175 million to $200 million, which is calculated after deducting maintenance capital expenditures of approximately $23 million associated with NRP's non-operated working interests in oil and natural gas properties and VantaCore's construction aggregates mining and production operations.
The following table sets forth NRP's guidance for the year ending December 31, 2015:
2014 Actuals 2015 Guidance ------------ ------------- (Range) (in millions (in millions) ------------ Coal production (mm tons) 50.5 44.0 - 51.0 ------------------------- ---- ---- --- ---- Coal-related revenues(1) $226.7 $207.0 - $221.0 ----------------------- ------ ------ --- ------ Aggregates and industrial minerals revenues(2) 54.1 163.0 - 179.0 ------------------------- ---- ----- --- ----- Oil and gas revenues(3) 59.6 56.0 - 66.0 ---------------------- ---- ---- --- ---- Equity and other unconsolidated investment income (soda ash revenues) 41.4 47.0 - 50.0 --------------------------- ---- ---- --- ---- Total revenues $399.8 $490.0 - $535.0 -------------- ------ ------ --- ------ Operating income $188.9 $176.0 - $206.0 ---------------- ------ ------ --- ------ Interest expense (net) $80.1 $88.0 - $91.0 --------------------- ----- ----- --- ----- Adjusted EBITDA (4) $300.3 $280.0 - $310.0 ------------------ ------ ------ --- ------ Distributable cash flow (4) $217.7 $175.0 - $200.0 -------------------------- ------ ------ --- ------
(1) Includes coal royalty revenues, coal lease minimums recognized as revenues, coal overriding royalties, wheelage fees and coal-related processing and transportation fees. (2) Includes aggregate royalty revenues and revenues from VantaCore's construction aggregates operations (3) Includes revenues from NRP's Williston Basin non-operated working interest assets as well as oil and gas royalty revenues. Assumes an average WTI price of $52 per Bbl. (4) "Adjusted EBITDA" and "Distributable cash flow" are non-GAAP financial measures. For an explanation of these measures, see "Non-GAAP Financial Measures" at the end of this release.
Liquidity and Capital Resources
At December 31, 2014, NRP had approximately $50.1 million in cash and $127.0 million available for borrowing under its revolving credit facilities, and does not anticipate any debt covenant compliance issues over the next year. NRP has $81 million in principal payments due on NRP Operating's senior notes during each of 2015 and 2016, and NRP Operating's revolving credit facility and term loan facility both mature in 2016. NRP remains committed to furthering its long-term goals of reducing debt and enhancing liquidity.
Distributions
In January 2015, the Board of Directors of NRP's general partner declared a quarterly distribution of $0.35 per unit for the fourth quarter 2014.
Company Profile
Natural Resource Partners L.P. is a master limited partnership headquartered in Houston, TX. NRP is a diversified natural resource company that owns interests in oil and gas, coal, aggregates and industrial minerals across the United States. A large percentage of NRP's revenues are generated from royalties and other passive income. In addition, NRP owns an equity investment in OCI Wyoming, a trona/soda ash operation, owns non-operated working interests in oil and gas properties and owns VantaCore, a construction aggregates business, making NRP ranked as one of the top 25 aggregates producers in the United States.
For additional information, please contact Kathy H. Roberts at 713-751-7555 or kroberts@nrplp.com. Further information about NRP is available on the partnership's website at http://www.nrplp.com.
Non-GAAP Financial Measures
"Distributable cash flow" represents cash flow from operations plus return on unconsolidated equity investments, proceeds from the sale of assets, and the return on direct financing lease and contractual overrides. Distributable cash flow is a "non-GAAP financial measure" that is presented because management believes it is a useful adjunct to net cash provided by operating activities under GAAP. Distributable cash flow is a significant liquidity metric that is an indicator of NRP's ability to make quarterly cash distributions to its partners. Distributable cash flow is also the quantitative standard used throughout the investment community with respect to publicly traded partnerships. Distributable cash flow is not a measure of financial performance under GAAP and should not be considered as an alternative to cash flows from operating, investing or financing activities. A reconciliation of historical distributable cash flow to net cash provided by operating activities is included in the tables attached to this release. Distributable cash flow may not be calculated the same for NRP as other companies.
"Adjusted EBITDA" is a non-GAAP financial measure that we define as net income less equity and other unconsolidated investment income; plus cash distributions received from unconsolidated affiliates, interest expense, taxes, depreciation, depletion and amortization, and asset impairments. "Adjusted EBITDA," as used and defined by us, may not be comparable to similarly titled measures employed by other companies and is not a measure of performance calculated in accordance with GAAP. Adjusted EBITDA should not be considered in isolation or as a substitute for operating income, net income or loss, cash flows provided by operating, investing and financing activities, or other income or cash flow statement data prepared in accordance with GAAP. Adjusted EBITDA provides no information regarding a company's capital structure, borrowings, interest costs, capital expenditures, and working capital movement or tax positions. Adjusted EBITDA does not represent funds available for discretionary use because those funds may be required for debt service, capital expenditures, working capital and other commitments and obligations. Our management team believes adjusted EBITDA is useful in evaluating our financial performance because this measure is widely used by analysts, investors and rating agencies for comparative purposes. There are significant limitations to using adjusted EBITDA as a measure of performance, including the inability to analyze the effect of certain recurring and non-recurring items that materially affect our net income or loss, the lack of comparability of results of operations of different companies and the different methods of calculating adjusted EBITDA reported by different companies. A reconciliation of historical adjusted EBITDA to net income is included in the tables attached to this release.
This press release contains information based upon forward-looking estimates of distributable cash flow and adjusted EBITDA for the year ending December 31, 2015. We do not provide financial guidance for projected net income or changes in working capital, and, therefore, we are unable to provide a reconciliation of our adjusted EBITDA or distributable cash flow projections to net income, operating income, or net cash flow provided by operating activities, the most comparable financial measures calculated in accordance with GAAP.
Forward-Looking Statements
This press release includes "forward-looking statements" as defined by the Securities and Exchange Commission. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the partnership expects, believes or anticipates will or may occur in the future are forward-looking statements. These statements are based on certain assumptions made by the partnership based on its experience and perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the partnership. These risks include, but are not limited to, commodity prices; decreases in demand for coal, oil, natural gas, and aggregates and industrial minerals, including trona/soda ash; changes in operating conditions and costs; production cuts by our lessees; the pace of development of our oil and natural gas properties; unanticipated geologic problems; our liquidity and access to capital and financing sources; changes in the legislative or regulatory environment and other factors detailed in Natural Resource Partners' Securities and Exchange Commission filings. Natural Resource Partners L.P. has no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
-Financial statements follow-
Natural Resource Partners L.P. Operating Statistics - Coal Related Revenue (in thousands except per ton data) Quarter Ended For the Year Ended ------------- ------------------ December 31 December 31 December 31 December 31 2014 2013 2014 2013 ---- ---- ---- ---- (unaudited) (unaudited) ---------- ---------- Regional Statistics Coal royalty production (tons): Appalachia Northern 2,802 1,454 9,339 11,505 Central 4,996 4,739 20,092 20,801 Southern 964 963 3,914 4,151 --- --- ----- ----- Total Appalachia 8,762 7,156 33,345 36,457 Illinois Basin 3,113 3,546 13,177 13,087 Northern Powder River Basin 738 279 2,844 2,778 Gulf Coast 373 108 1,093 970 Total 12,986 11,089 50,459 53,292 ====== ====== ====== ====== Average royalty revenue per ton: Appalachia Northern $0.96 $1.81 $0.92 $1.27 Central 4.07 4.88 4.46 5.05 Southern 5.00 5.75 5.18 6.30 Total Appalachia 3.18 4.38 3.55 4.00 Illinois Basin 4.21 4.27 4.10 4.28 Northern Powder River Basin 2.39 3.10 2.74 2.72 Gulf Coast 3.54 3.63 3.47 3.39 Combined average royalty revenue per ton $3.39 $4.30 $3.65 $3.99 Coal royalty revenues: Appalachia Northern $2,680 $2,635 $8,621 $14,643 Central 20,338 23,143 89,627 105,004 Southern 4,823 5,533 20,292 26,156 ----- ----- ------ ------ Total Appalachia $27,841 $31,311 $118,540 $145,803 Illinois Basin 13,093 15,137 54,049 56,001 Northern Powder River Basin 1,763 866 7,804 7,569 Gulf Coast 1,320 392 3,793 3,290 Total coal royalty revenues $44,017 $47,706 $184,186 $212,663 ======= ======= ======== ======== Other coal related revenues: Override revenue 1,085 1,659 4,601 10,372 Transportation and processing fees 5,366 5,509 22,048 22,519 Minimums recognized as revenue 2,455 915 6,659 6,528 Reserve swap - - 5,690 8,149 DOH -Coal Property Sale - 10,370 - 10,370 Coal Bonus 98 - 98 - Wheelage 776 799 3,442 3,593 Total other coal related revenues $9,780 $19,252 $42,538 $61,531 ====== ======= ======= ======= Total coal related revenues $53,797 $66,958 $226,724 $274,194 ======= ======= ======== ========
Natural Resource Partners L.P. Operating Statistics - Aggregates and Industrial Minerals (in thousands except per ton data) Quarter Ended For the Year Ended ------------- ------------------ December 31, December 31, December 31, December 31, 2014 2013 2014 2013 ---- ---- ---- ---- (unaudited) (unaudited) ---------- ---------- VantaCore Tonnage Sold 4,281 - 4,281 - Revenues $42,051 $ - $42,051 $ - Operating expenses $32,309 $ - $32,309 $ - Aggregates royalty revenues and production Tonnage 648 1,642 3,492 6,155 Aggregate royalty revenues $501 $1,774 $3,179 $7,073 Other aggregate related revenue $1,958 $2,043 $8,894 $6,406 Total aggregate related revenues $44,510 $3,817 $54,124 $13,479 ------- ------ ------- ------- Soda ash revenues and distributions Equity and other unconsolidated investment earnings $12,551 $12,018 $41,416 $34,186 Cash distributions received from OCI Wyoming $10,780 $ - $46,638 $72,946
Natural Resource Partners L.P. Operating Statistics - Oil and Gas ($ in thousands) Quarter Ended Year Ended ------------- ---------- December 31, December 31, December 31, December 31, 2014 2013 2014 2013 ---- ---- ---- ---- (unaudited) (unaudited) ---------- ---------- Williston Basin non-operated working interests ------------------------------- Production volumes Oil (MBbls) 295 N/A 578 N/A Natural gas (Mcf) 207 N/A 408 N/A NGL (MBoe) 33 N/A 53 N/A Average sales price per unit Oil ($/Bbl) $63.17 N/A $77.85 N/A Natural gas ($/Mcf) $3.64 N/A $5.04 N/A NGL ($/Boe) $26.42 N/A $33.64 N/A Revenues Oil $18,635 N/A $44,995 N/A Natural gas $753 N/A $2,056 N/A NGL $872 N/A $1,783 N/A ---- --- ------ --- Total $20,260 N/A $48,834 N/A Other oil and gas related revenues Royalty and overriding revenues $1,825 N/A $10,732 N/A Total oil and gas revenues $22,085 $7,338 $59,566 $17,080 ======= ====== ======= =======
Natural Resource Partners L.P. Consolidated Statements of Comprehensive Income (in thousands, except per unit data) Quarter Ended For the Year Ended ------------- ------------------ December 31, December 31, December 31, December 31, 2014 2013 2014 2013 ---- ---- ---- ---- (unaudited) (unaudited) ---------- ---------- Revenues and other income: Coal related revenues $53,797 $66,958 $226,724 $274,194 Aggregate related revenues 44,510 3,817 54,124 13,479 Oil and gas related revenues 22,085 7,338 59,566 17,080 Equity and other unconsolidated investment income 12,551 12,018 41,416 34,186 Property taxes 2,744 3,611 13,609 15,416 Other 1,586 1,002 4,313 3,762 Total revenues and other income 137,273 94,744 399,752 358,117 Operating expenses: Depreciation, depletion and amortization 30,258 14,352 79,876 64,377 Asset impairments 20,585 - 26,209 734 General and administrative 13,887 9,052 36,437 36,821 Property, franchise and other taxes 5,443 3,653 21,279 16,463 Oil and gas lease operating expenses 2,785 256 9,144 739 Aggregate operating expenses 32,309 - 32,309 - Transportation costs 366 402 1,604 1,644 Royalty payments 590 277 3,975 1,103 Total operating expenses 106,223 27,992 210,833 121,881 ------- ------ ------- ------- Income from operations 31,050 66,752 188,919 236,236 Other income (expense) - Interest expense (22,426) (19,777) (80,185) (64,396) Interest income 21 6 96 238 Net income $8,645 $46,981 $108,830 $172,078 ====== ======= ======== ======== Net income attributable to: General partner $173 $940 $2,177 $3,442 Limited partners $8,472 $46,041 $106,653 $168,636 $0.07 $0.42 $0.94 $1.54 Basic and diluted net income per limited partner unit: Weighted average number of units outstanding: 121,449 109,812 113,262 109,584 ======= ======= ======= ======= Comprehensive income $8,458 $46,900 $108,749 $172,143 ====== ======= ======== ========
Natural Resource Partners L.P. Consolidated Statements of Cash Flow (in thousands, except per unit data) Quarter Ended For the Year Ended ------------- ------------------ December 31, December 31, December 31, December 31, 2014 2013 2014 2013 ---- ---- ---- ---- (unaudited) (unaudited) ---------- ---------- Cash flows from operating activities: Net income $8,645 $46,981 $108,830 $172,078 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation, depletion and amortization 30,258 14,352 79,876 64,377 Gain on reserve swap - - (5,690) (8,149) Equity and other unconsolidated investment income (12,551) (12,018) (41,416) (34,186) Distributions of earnings from unconsolidated investments 10,780 - 43,005 24,113 Non-cash interest charge, net 1,183 746 3,328 2,200 Gain on sale of assets (1,383) (10,370) (1,386) (10,921) Asset impairment 20,585 - 26,209 734 Change in operating assets and liabilities: Inventory 748 - 748 - Accounts receivable (3,151) (2,651) (10,693) 6,826 Other assets (1,545) (1,380) (795) (516) Accounts payable and accrued liabilities (6,034) 1,405 (4,411) 2,197 Accrued interest (2,160) 9,517 1,032 6,919 Deferred revenue 6,329 5,909 17,674 19,240 Accrued incentive plan expenses 180 2,364 (5,265) 2,284 Property, franchise and other taxes payable 1,775 2,704 (291) (122) Net cash provided by operating activities: 53,659 57,559 210,755 247,074 ------ ------ ------- ------- Cash flows from investing activities: Acquisition of plant and equipment (2,247) - (2,454) - Acquisition of land, coal, other mineral rights, and related intangibles (339,000) (33,697) (339,768) (72,000) Acquisition of equity interests - (8) - (293,085) Acquisition of aggregate operations (168,978) - (168,978) - Oil and gas capital expenditures (2,991) - (16,258) - Return on unconsolidated equity investments - - 3,633 48,833 Proceeds from sale of assets 1,413 10,370 1,418 10,929 Return on direct financing lease and contractual override 994 1,717 1,904 2,558 Net cash used in investing activities (510,809) (21,618) (520,503) (302,765) -------- ------- -------- -------- Cash flows from financing activities: Proceeds from loans 635,375 20,000 637,375 567,020 Repayment of loans (258,808) - (327,983) (386,230) Deferred financing costs (5,094) (148) (5,094) (9,209) Proceeds from issuance of common units 102,376 - 127,202 75,000 Capital contribution by general partner 2,733 - 3,240 1,531 Costs associated with equity transactions (3,812) (233) (4,413) (293) Distributions to partners (43,670) (62,722) (163,016) (249,039) Net cash provided by (used in) financing activities 429,100 (43,103) 267,311 (1,220) ------- ------- ------- ------ Net increase (decrease) in cash and cash equivalents (28,050) (7,162) (42,437) (56,911) Cash and cash equivalents at beginning of period 78,126 99,675 92,513 149,424 Cash and cash equivalents at end of period $50,076 $92,513 $50,076 $92,513 ======= ======= ======= ======= Supplemental cash flow information: Cash paid during the period for interest $23,889 $9,475 $76,155 $55,191 ======= ====== ======= ======= Non-cash activities: Units issued for aggregate operations $31,604 $ - $31,604 $ - Non-cash contingent consideration on equity investments $ - $15,000 $ - $15,000
Natural Resource Partners L.P. Consolidated Balance Sheets (in thousands, except for unit information) ASSETS December 31 December 31, 2014 2013 ---- ---- (unaudited) Current assets: Cash and cash equivalents $50,076 $92,513 Accounts receivable, net of allowance for doubtful accounts 66,455 33,737 Accounts receivable - affiliates 9,494 7,666 Inventory 5,814 - Other 4,279 1,691 Total current assets 136,118 135,607 Land 25,243 24,340 Plant and equipment, net 60,093 26,435 Mineral rights, net 1,781,896 1,405,455 Intangible assets, net 60,689 66,950 Goodwill 52,012 - Equity and other unconsolidated investments 264,020 269,338 Loan financing costs, net 13,905 11,502 Long-term contracts receivable - affiliate 50,008 51,732 Other assets 740 497 Total assets $2,444,724 $1,991,856 ========== ========== LIABILITIES AND PARTNERS' CAPITAL Current liabilities: Accounts payable and accrued liabilities $32,416 $8,659 Accounts payable - affiliates 950 391 Current portion of long-term debt 80,983 80,983 Accrued incentive plan expenses - current portion 7,048 8,341 Property, franchise and other taxes payable 8,318 7,830 Accrued interest 18,216 17,184 Total current liabilities 147,931 123,388 Deferred revenue 160,260 142,586 Accrued incentive plan expenses 6,554 10,526 Asset retirement obligation 4,905 - Other non-current liabilities 10,679 14,341 Long-term debt 1,394,240 1,084,226 Partners' capital: Common units outstanding ( 122,299,825 and 109,812,408) 709,018 606,774 General partner's interest 12,246 10,069 Non- controlling interest (650) 324 Accumulated other comprehensive loss (459) (378) Total partners' capital 720,155 616,789 ------- ------- Total liabilities and partners' capital $2,444,724 $1,991,856 ========== ==========
Natural Resource Partners L.P. Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures (in thousands) Reconciliation of GAAP "Net cash provided by operating activities" to Non-GAAP "Distributable cash flow" Quarter Ended For the Year Ended ------------- ------------------ December 31, December 31, December 31, December 31, 2014 2013 2014 2013 ---- ---- ---- ---- (unaudited) (unaudited) ---------- ---------- Net cash provided by operating activities $53,659 $57,559 $210,755 $247,074 Return on direct financing lease and contractual override 994 1,717 1,904 2,558 Return on unconsolidated equity investments - - 3,633 48,833 Proceeds from sale of assets 1,413 10,370 1,418 10,929 Distributable cash flow $56,066 $69,646 $217,710 $309,394 ======= ======= ======== ======== Reconciliation of GAAP "Net cash provided by operating activities" to Non-GAAP "Distributable cash flow" Quarter Ended ------------- December 31, September 30, 2014 2014 ---- ---- (unaudited) ---------- Net cash provided by operating activities $53,659 $57,458 Return on direct financing lease and contractual override 994 310 Return on unconsolidated equity investments - - Proceeds from sale of assets 1,413 5 Distributable cash flow $56,066 $57,773 ======= =======
Natural Resource Partners L.P. Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures (in thousands) Reconciliation of GAAP "Net income" to Non-GAAP "Adjusted EBITDA" Quarter Ended For the Year Ended ------------- ------------------ December 31, December 31, December 31, December 31, 2014 2013 2014 2013 ---- ---- ---- ---- (unaudited) (unaudited) ---------- ---------- Net income $8,645 $46,981 $108,830 $172,078 Less: Equity and other unconsolidated investment income (12,551) (12,018) (41,416) (34,186) Add: Distributions from unconsolidated affiliates 10,780 - 46,638 72,946 Add depreciation, depletion and amortization 30,258 14,352 79,876 64,377 Add asset impairments 20,585 - 26,209 734 Add interest expense, gross 22,426 19,777 80,185 64,396 Adjusted EBITDA $80,143 $69,092 $300,322 $340,345 ======= ======= ======== ======== Reconciliation of GAAP "Net income" to Non-GAAP "Adjusted EBITDA" Quarter Ended ------------- December 31, September 30, 2014 2014 ---- ---- (unaudited) ---------- Net income $8,645 $36,173 Less: Equity and other unconsolidated investment income (12,551) (9,685) Add: Distributions from unconsolidated affiliates 10,780 10,290 Add depreciation, depletion and amortization 30,258 18,621 Add asset impairments 20,585 - Add interest expense, gross 22,426 18,862 Adjusted EBITDA $80,143 $74,261 ======= =======
Reconciliation of GAAP "Total operating costs and expenses" to Non-GAAP "Total operating expenses before considering any impairments" Quarter Ended For the Year Ended ------------- ------------------- September 30, December 31, December 31, December 31, December 31, 2014 2014 2013 2014 2013 ---- ---- ---- ---- ---- (unaudited) (unaudited) ---------- ---------- Operating expenses ------------------ Total operating expenses as reported $36,582 $106,223 $27,992 $210,833 $121,881 Impairments $ - $(20,585) $ - $(26,209) $(734) Total operating costs before considering any impairments $36,582 $85,638 $27,992 $184,624 $121,147 Reconciliation of GAAP "Net income attributable to the limited partners" to Non-GAAP "Net income attributable to the limited partners before considering any impairments" Quarter Ended For the Year Ended ------------- ------------------- September December December December December 2014 2014 2013 2014 2013 ---- ---- ---- ---- ---- (unaudited) (unaudited) ---------- ---------- Net income attributable to the limited partners -------------------------------- Net income as reported $36,173 $8,645 $46,981 $108,830 $172,078 Impairments - 20,585 - $26,209 $734 Net income before considering any impairments $36,173 $29,230 $46,981 $135,039 $172,812 Net income, before considering any impairments, attributable to: General partner $723 $585 $940 $2,701 $3,456 Limited partners $35,450 $28,645 $46,041 $132,338 $169,356 Reconciliation of GAAP "Basic and diluted net income per unit" to Non-GAAP "Net income per unit before considering any impairments" Quarter Ended For the Year Ended ------------- ------------------ September December December December December 2014 2014 2013 2014 2013 ---- ---- ---- ---- ---- (unaudited) (unaudited) ---------- ---------- Net income per unit * ------------------- Net income per unit as reported $0.32 $0.07 $0.42 $0.94 $1.54 Adjustment for impairments - 0.17 - 0.23 0.01 Net income per limited partner unit, before considering any impairments $0.32 $0.24 $0.42 $1.17 $1.55 Weighted number of units outstanding 111,244 121,449 109,812 113,262 109,584 * Numbers may not add due to rounding
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SOURCE Natural Resource Partners L.P.