NATURAL RESOURCE PARTNERS LP HOUSTON, Aug. 6, 2014 /PRNewswire/ -- Natural Resource Partners L.P. (NYSE:NRP) today reported revenues of $90.6 million for the second quarter of 2014 compared to $86.8 million for the second quarter of 2013, and distributable cash flow, a non-GAAP measure, of $64.9 million compared to $90.7 million for the second quarter of 2013. Net income per unit was $0.28 in the second quarter of 2014 versus $0.37 per unit in the second quarter of 2013. Before considering an asset impairment expense of $5.6 million for an intangible asset related to an aggregates property, net income per unit for the second quarter 2014 was $0.33. NRP reported EBITDA, a non-GAAP measure, of $77.2 million in the second quarter 2014 compared to $76.1 million for the second quarter 2013. Reconciliations of the non-GAAP measures of distributable cash flow and EBITDA are included in the tables at the end of this release.
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"Strong performances in the first half of the year from our oil and gas, soda ash and Illinois coal businesses offset the challenges that we continue to face in the Appalachian coalfields," said Nick Carter, President and COO. "Our diversification efforts have provided significant benefits to NRP and consequently our combined operating results for the first six months were in line with our expectations."
At the end of the second quarter, NRP had approximately $373 million in liquidity, consisting of $70 million in cash and $303 million available under its revolving credit facilities. During the second quarter of 2014, NRP reduced its debt by $12.3 million bringing the total net reduction for the first half of the year to $51.5 million.
"Following through on our stated goal earlier this year, we have used the excess cash generated by our substantial distribution coverage to reduce our leverage," said Dwight Dunlap, Chief Financial Officer. "We intend to continue to pay down our debt over the remainder of the year and use our liquidity and improved credit to fund the growth and continued diversification of NRP."
Reaffirmed Guidance and Market Outlook
Excluding a $5.6 million impairment charge taken in the second quarter, NRP is reaffirming its initial guidance for 2014. While NRP anticipates that coal related revenues may be lower than the initial guidance, revenues from other sources are expected to increase, offsetting those declines.
"We are pleased that our first half results matched our expectations, and anticipate continued strong performance in the second half of the year from our soda ash, oil and gas and Illinois Basin coal operations," said Wyatt Hogan, Executive Vice President.
NRP's Williston Basin assets are benefitting from strong oil markets and production growth from new wells coming on line in the Bakken/Three Forks play. In addition, NRP's soda ash business continues to perform well, and is on pace to distribute approximately $46 million to NRP in 2014. The domestic soda ash market remains steady, while the international market for soda ash continues to improve, as global production capacity for high-cost synthetic soda ash continues to be reduced.
While the thermal coal market was starting to show signs of recovery earlier this year aided by the cold winter and higher natural gas prices, the cooler than anticipated summer so far has dampened some of the optimism around thermal coal prices. The global metallurgical coal market continues to suffer from oversupply in addition to reduced demand from China, and NRP does not anticipate metallurgical coal prices recovering in 2014. NRP has exposure to three mines included in Alpha's recent WARN notice issued in West Virginia, but even if these mines are ultimately idled, it would not have a material impact on NRP's 2014 forecast as the mines are projected to continue full operations through the third quarter. While other lessees have also announced potential idling of mines through WARN notices, NRP does not anticipate a material impact on its 2014 results. In contrast, NRP believes that thermal coal production from its low-cost Illinois Basin properties will continue to remain strong.
Second Quarter 2014 compared to Second Quarter 2013
Highlights Quarter Ended For the Six Months Ended
------------- ------------------------
June June % June June %
2014 2013 Change 2014 2013 Change
---- ---- ------ ---- ---- ------
(in thousands except (in thousands except per
per unit and per ton) unit and per ton)
--------------------- ------------------------
Revenues
--------
Total revenues and
other income $90,561 $86,804 4% $170,870 $181,136 -6%
------------------ ------- ------- --- -------- -------- ---
Coal production
(tons) 11,851 14,894 -20% 24,103 28,727 -16%
--------------- ------ ------ --- ------ ------ ---
Average coal royalty
revenue per ton $3.86 $3.91 -1% $3.70 $3.92 -6%
-------------------- ----- ----- --- ----- ----- ---
Coal royalty revenues $45,763 $58,210 -21% $89,298 $112,652 -21%
--------------------- ------- ------- --- ------- -------- ---
Other coal related
revenue $9,598 $9,197 4% $18,436 $32,598 -43%
------------------ ------ ------ --- ------- ------- ---
Total coal related
revenues $55,361 $67,407 -18% $107,734 $145,250 -26%
------------------ ------- ------- --- -------- -------- ---
Aggregates and
industrial minerals
related revenue(1) $12,964 $10,781 20% $26,139 $20,785 26%
-------------------- ------- ------- --- ------- ------- ---
Oil and gas related
revenue $17,822 $4,093 335% $27,880 $5,856 376%
------------------- ------- ------ --- ------- ------ ---
Operating Expenses $40,158 $31,472 28% $68,028 $63,276 8%
------------------ ------- ------- --- ------- ------- ---
Net income
----------
Net income to limited
partners $30,779 $40,244 -24% $62,732 $87,192 -28%
--------------------- ------- ------- --- ------- ------- ---
Net income per unit $0.28 $0.37 -24% $0.57 $0.80 -29%
------------------- ----- ----- --- ----- ----- ---
Average units
outstanding 110,403 109,812 1% 110,127 109,352 1%
------------- ------- ------- --- ------- ------- ---
Net income before
considering the
impairment(1)
-----------------
Net income to limited
partners 36,290 40,678 -11% 68,243 87,911 -22%
--------------------- ------ ------ --- ------ ------ ---
Net income per unit $0.33 $0.37 -11% $0.62 $0.80 -23%
------------------- ----- ----- --- ----- ----- ---
Distributable cash
flow(2) $64,944 $90,650 -28% $103,871 $135,135 -23%
------------------ ------- ------- --- -------- -------- ---
EBITDA(2) $77,178 $76,068 1% 148,898 156,683 -5%
-------- ------- ------- --- ------- ------- ---
EBITDA margin(2) 85% 88% -3% 87% 87% 0%
--------------- --- --- --- --- --- ---
(1) Aggregates and
industrial
minerals
include the
equity and
other
unconsolidated
investment
income
associated
with the OCI
Wyoming soda
ash business.
(2) See "Non-GAAP
Financial
Measures" and
reconciliation
tables at the
end of the
release.
Revenues and other income
Second quarter 2014 total revenues and other income increased 4% from the same period of 2013. NRP benefitted from its diversification into other asset classes, as revenues other than coal related revenues more than offset the declines experienced in coal related revenues. Coal production volumes decreased 20% to 11.9 million tons, while average coal royalty revenue per ton decreased 1% to $3.86 per ton, which led to a 21% reduction in coal royalty revenues to $45.8 million from the second quarter 2013. The reductions in production and price realizations were primarily related to NRP's Appalachian properties.
Metallurgical coal accounted for 36% of NRP's coal production and 43% of its coal royalty revenues for the second quarter of 2014 compared to 28% of production and 40% of coal royalty revenues in the second quarter of 2013.
Revenues other than coal related revenues nearly doubled from the second quarter 2013 primarily due to increased oil and gas revenues and our investment in the soda ash business.
Oil and gas revenues increased nearly six-fold over the second quarter of 2013 to $10.1 million, primarily due to the revenues generated by NRP's Williston Basin properties acquired in the second half of 2013. NRP also recognized a 19% increase in the equity income associated with NRP's investment in the soda ash business due to both an increase in net income for the business as well as 23 additional days of income in 2014 over 2013.
Operating expenses
Total operating expenses for the second quarter 2014 rose $8.7 million to $40.2 million from the second quarter 2013. The increase was mainly due to $2.3 million of operating expenses associated with NRP's Williston Basin oil and gas properties acquired in the second half of 2013, and a $5.6 million asset impairment expense recorded in 2014.
Net income attributable to the limited partners
Net income attributable to the limited partners and net income per unit decreased in the second quarter of 2014 compared to the 2013 period to $30.8 million, or $0.28 per unit, from $40.2 million or $0.37 per unit. Approximately half of the decrease was associated with the non-cash impairment charge. Before considering the impairment, net income attributable to the limited partners and net income per unit were $36.3 million and $0.33 per unit, respectively.
Distributable cash flow
Distributable cash flow decreased by 28% to $64.9 from $90.7 million mainly due to $12.1 million less in distributions from OCI and increased interest expense.
EBITDA
EBITDA for the second quarter 2014 remained relatively flat at $77.2 million compared to the EBITDA generated in the second quarter 2013 of $76.1 million.
Second Quarter 2014 compared to First Quarter 2014
Highlights Quarter Ended
-------------
June 2014 March 2014 % Change
--------- ---------- --------
(in thousands, except per
ton and per unit)
--------------------------
Revenues
and
other
income
--------
Total
revenues
and
other
income $90,561 $80,309 13%
--------- ------- ------- ---
Coal
production
(tons) 11,851 12,252 -3%
----------- ------ ------ ---
Average
coal
royalty
revenue
per
ton $3.86 $3.55 9%
------- ----- ----- ---
Coal
royalty
revenues $45,763 $43,536 5%
--------- ------- ------- ---
Other
coal
related
revenue $9,598 $8,837 9%
-------- ------ ------ ---
Total
coal
related
revenue $55,361 $52,373 6%
-------- ------- ------- ---
Aggregates
and
industrial
minerals
related
revenue(1) $12,964 $13,175 -2%
---------- ------- ------- ---
Oil
and
gas
related
revenue $17,822 $10,058 77%
-------- ------- ------- ---
Operating
expenses $40,158 $27,870 44%
--------- ------- ------- ---
Net
income
-------
Net
income
to
limited
partners $30,779 $31,953 -4%
--------- ------- ------- ---
Net
income
to
the
limited
partners,
before
considering
the
impairment(1) $36,290 $31,953 14%
-------------- ------- ------- ---
Net
income
per
unit $0.28 $0.29 -4%
------- ----- ----- ---
Net
income
per
unit,
before
considering
the
impairment(1) $0.33 $0.29 13%
-------------- ----- ----- ---
Average
units
outstanding 110,403 109,848 1%
----------- ------- ------- ---
Distributable
cash
flow(2) $64,944 $38,927 67%
------------- ------- ------- ---
EBITDA(2) $77,178 $71,720 8%
-------- ------- ------- ---
EBITDA
margin(2) 85% 89% -5%
---------- --- --- ---
(1) Aggregates and
industrial
minerals
include the
equity and
other
unconsolidated
investment
income
associated
with the OCI
Wyoming soda
ash business.
See "Non-GAAP
Financial
Measures" and
reconciliation
tables at the
end of the
(2) release.
Revenues and other income
Total revenues and other income for the second quarter increased $10.3 million or 13% from the first quarter, predominantly due to a $3.0 million increase in coal related revenues and a $7.8 million increase in oil and gas revenues. In the second quarter, NRP realized increased coal royalty revenues due to increased average realizations per ton of coal, relative to the first quarter, and increased oil and gas revenue due to increased oil and gas activity. The increased realizations were mainly due to the mix of coal properties.
Operating expenses
Operating expenses increased $12.3 million over the previous quarter predominantly due to the following:
-- Increased depreciation, depletion and amortization (non-cash) of $1.7
million due to production from higher cost properties in this quarter
versus the previous quarter
-- Impairment charge (non-cash) of $5.6 million
-- Increased general and administrative expenses of $3.2 million were
mainly due to a negative accrual for the long term incentive plan in the
first quarter due to the drop in unit price. The second quarter
reflects more of a normal accrual.
-- Increased property, franchise and other taxes of $1.3 million
predominantly due to severance taxes on oil and gas income
Net income attributable to the limited partners
Net income attributable to the limited partners and net income per unit decreased in the second quarter from the previous quarter by $1.2 million and $0.01 per unit, respectively. Before considering the non-cash impairment charge taken in the second quarter, net income attributable to the limited partners would have increased by $4.3 million to $36.3 million while net income per unit would have increased by $0.04 to $0.33 per unit.
Distributable cash flow
Distributable cash flow increased to $64.9 million, up from $38.9 million reported in the first quarter mainly due to changes in the balance sheet included in net cash provided by operating activities, as well as additional distributions received from OCI in the second quarter.
EBITDA
EBITDA for the second quarter 2014 increased over the first quarter by $5.5 million due to increased revenues.
Distributions
As reported on July 22, 2014, the Board of Directors of NRP's general partner declared a quarterly distribution of $0.35 per unit for the second quarter 2014.
Company Profile
Natural Resource Partners L.P. is a master limited partnership headquartered in Houston, TX, with its operations headquarters in Huntington, WV. NRP is principally engaged in the business of owning and managing mineral reserve properties. NRP owns interests in coal, aggregates and industrial minerals and oil and gas across the United States that generate royalty and other income for the partnership. In addition, NRP owns an equity investment in OCI Wyoming, a trona/soda ash operation, and owns non-operated working interests in oil and gas properties.
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 any proceeds from the sale of assets plus the return on direct financing lease and contractual overrides shown in the cash flows from investing activities section of the cash flow statement. 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 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.
"EBITDA" is a non-GAAP financial measure that we define as earnings before interest, taxes, depreciation, depletion and amortization and asset impairment. "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. 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. EBITDA provides no information regarding a company's capital structure, borrowings, interest costs, capital expenditures, and working capital movement or tax positions. 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 EBITDA is useful in evaluating our financial performance because this measure is widely used by analysts and investors for comparative purposes. EBITDA is a financial measure widely used by investors in the high-yield bond market. There are significant limitations to using 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 EBITDA reported by different companies.
"EBITDA margin" represents NRP's EBITDA as a percentage of total revenues and other income.
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, decreases in demand for coal, oil and gas, and aggregates and industrial minerals, including trona/soda ash; changes in operating conditions and costs; production cuts by our lessees; commodity prices; unanticipated geologic problems; 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 Six Months Ended
------------- ------------------------
June June June June
2014 2013 2014 2013
---- ---- ---- ----
(unaudited) (unaudited)
---------- ----------
Coal Royalties:
Coal royalty production (tons):
Appalachia
Northern 1,826 3,531 4,477 7,272
Central 5,288 5,826 9,664 10,946
Southern 949 1,163 1,933 2,267
--- ----- ----- -----
Total
Appalachia 8,063 10,520 16,074 20,485
Illinois Basin 3,416 3,012 6,538 5,906
Northern Powder
River Basin 173 969 1,052 1,764
Gulf Coast 199 393 439 572
Total 11,851 14,894 24,103 28,727
====== ====== ====== ======
Average royalty revenue per ton:
Appalachia
Northern $1.07 $1.20 $0.91 $1.25
Central 4.50 5.18 4.53 5.17
Southern 5.14 6.32 5.35 6.64
Total
Appalachia 3.80 3.97 3.62 3.94
Illinois Basin 4.12 4.26 4.06 4.32
Northern Powder
River Basin 2.09 2.37 2.83 2.51
Gulf Coast 3.54 3.29 3.46 3.42
Combined average royalty revenue per ton $3.86 $3.91 $3.70 $3.92
Coal royalty revenues:
Appalachia
Northern $1,958 $4,242 $4,096 $9,126
Central 23,781 30,185 43,818 56,591
Southern 4,875 7,352 10,339 15,052
----- ----- ------ ------
Total
Appalachia $30,614 $41,779 $58,253 $80,769
Illinois Basin 14,083 12,843 26,553 25,500
Northern Powder
River Basin 362 2,295 2,972 4,424
Gulf Coast 704 1,293 1,520 1,959
Total $45,763 $58,210 $89,298 $112,652
======= ======= ======= ========
Other coal related revenues:
Override revenue 1,402 2,582 2,746 6,444
Transportation and
processing fees 5,996 5,030 11,093 11,005
Minimums recognized
as revenue 1,338 549 2,808 5,005
Reserve swap - - - 8,149
Wheelage 862 1,036 1,789 1,995
Total other coal
related
revenues $9,598 $9,197 $18,436 $32,598
====== ====== ======= =======
Total coal revenues $55,361 $67,407 $107,734 $145,250
======= ======= ======== ========
Natural Resource Partners L.P.
Operating Statistics - Aggregates and Industrial Minerals
(in thousands except per ton data)
Quarter Ended For the Six Months
Ended
------------- -------------------
June June June June
2014 2013 2014 2013
---- ---- ---- ----
(unaudited) (unaudited)
---------- ----------
Aggregate royalty revenues and production
Tonnage 927 1,463 2,142 2,746
Average royalty per
ton $0.69 $1.20 $0.99 $1.20
Total aggregate
royalty revenues $644 $1,751 $2,125 $3,303
Other aggregate
related revenue $2,919 $1,148 $4,834 $2,552
Total aggregate
related revenues $3,563 $2,899 $6,959 $5,855
------ ------ ------ ------
Equity and other
unconsolidated
investment earnings $9,401 $7,882 $19,180 $14,930
Total aggregates and
industrial minerals
related revenue $12,964 $10,781 $26,139 $20,785
======= ======= ======= =======
Cash distributions
received from OCI
Wyoming $13,923 $26,702 $25,568 $26,939
Natural Resource Partners L.P.
Operating Statistics - Oil and Gas
(in thousands except per unit data)
Quarter Ended Six Months Ended
------------- ----------------
June June June June
2014 2013 2014 2013
---- ---- ---- ----
(unaudited) (unaudited)
---------- ----------
Williston Basin non-operated working
interests
Production volumes
Oil (MBbls) 139 N/A 207 N/A
Natural gas
(Mcf) 97 N/A 112 N/A
NGL (MBoe) 10 N/A 12 N/A
Average sales price per unit
Oil ($/Bbl) $93.40 N/A $95.86 N/A
Natural gas
($/Mcf) $5.71 N/A $7.54 N/A
NGL ($/Boe) $35.40 N/A $48.50 N/A
Revenues
Oil $12,982 N/A $19,842 N/A
Natural gas $554 N/A $844 N/A
NGL $354 N/A $582 N/A
---- --- ---- ---
Total $13,890 N/A $21,268 N/A
Other oil and
gas related
revenues $3,932 $4,093 $6,612 $5,856
Total oil and
gas revenues $17,822 $4,093 $27,880 $5,856
======= ====== ======= ======
Natural Resource Partners L.P.
Consolidated Statements of Comprehensive Income
(in thousands, except per unit data)
Quarter Ended For the Six Months Ended
------------- ------------------------
June June June June
2014 2013 2014 2013
---- ---- ---- ----
(unaudited) (unaudited)
---------- ----------
Revenues and other income:
Coal related
revenues $55,361 $67,407 $107,734 $145,250
Aggregate
related
revenues 3,563 2,899 6,959 5,855
Oil and gas
related revenues 17,822 4,093 27,880 5,856
Equity and other
unconsolidated
investment income 9,401 7,882 19,180 14,930
Property taxes 3,378 3,849 7,345 7,796
Other 1,036 674 1,772 1,449
Total
revenues
and other
income 90,561 86,804 170,870 181,136
Operating expenses:
Depreciation,
depletion and
amortization 16,350 17,411 30,997 32,173
Asset
impairments 5,624 443 5,624 734
General and
administrative 9,029 8,878 14,886 20,464
Property,
franchise and
other taxes 6,201 4,225 11,069 8,576
Oil and gas lease
operating
expenses 2,291 - 4,212 -
Transportation
costs 462 328 884 787
Royalty
payments 201 187 356 542
Total
operating
expenses 40,158 31,472 68,028 63,276
------ ------ ------ ------
Income from operations 50,403 55,332 102,842 117,860
Other income (expense) -
Interest
expense (19,037) (14,440) (38,897) (29,103)
Interest
income 41 173 67 214
Income before non-controlling interest $31,407 $41,065 $64,012 $88,971
Non-
controlling
interest - - - -
Net income $31,407 $41,065 $64,012 $88,971
======= ======= ======= =======
Net income attributable to:
General
partner $628 $821 $1,280 $1,779
Limited
partners $30,779 $40,244 $62,732 $87,192
Basic and diluted net income per
limited
partner unit: $0.28 $0.37 $0.57 $0.80
Weighted average number of units outstanding: 110,403 109,812 110,127 109,352
======= ======= ======= =======
Comprehensive income $31,243 $41,116 $63,748 $89,076
======= ======= ======= =======
Natural Resource Partners L.P.
Consolidated Statements of Cash Flow
(in thousands, except per unit data)
Quarter Ended For the Six Months Ended
------------- ------------------------
June June June June
2014 2013 2014 2013
---- ---- ---- ----
(unaudited) (unaudited)
---------- ----------
Cash flows from operating activities:
Net income $31,407 $41,065 $64,012 $88,971
Adjustments to
reconcile net
income to
net cash
provided by
operating
activities:
Depreciation,
depletion and
amortization 16,350 17,411 30,997 32,173
Gain on
reserve swap - - - (8,149)
Equity and
other
unconsolidated
investment
income (9,401) (7,882) (19,180) (14,930)
Distributions
of earnings
from
unconsolidated
investments 10,290 15,925 21,935 16,162
Non-cash
interest
charge, net 721 279 1,468 555
Gain on sale
of assets - - - (150)
Asset
impairment 5,624 443 5,624 734
Change in
operating assets
and liabilities:
Accounts
receivable 3,375 4,781 (3,685) 4,250
Other assets 336 (3,251) 318 (2,985)
Accounts
payable and
accrued
liabilities 1,257 1,094 (413) 221
Accrued
interest (6,145) 1,349 (1,772) (576)
Deferred
revenue 3,357 5,445 7,099 9,951
Accrued
incentive
plan expenses 2,149 2,036 (5,916) (1,219)
Property,
franchise and
other taxes
payable 1,688 1,041 (849) (1,359)
Net cash provided by
operating activities: 61,008 79,736 99,638 123,649
------ ------ ------ -------
Cash flows from investing activities:
Oil and gas
capital
expenditures (6,319) - (8,123)
Acquisition of
land, coal, other
mineral rights,
and related
intangibles (768) - (768) -
Acquisition or
construction
of plant and
equipment (135) - (135) -
Acquisition of
equity
interests - (40) - (292,979)
Distributions
from
unconsolidated
investments 3,633 10,777 3,633 10,777
Proceeds from
sale of
assets - - - 154
Return on
direct
financing
lease and
contractual
override 303 137 600 555
Net cash used in investing
activities (3,286) 10,874 (4,793) (281,493)
------ ------ ------ --------
Cash flows from financing activities:
Proceeds from
loans - 43,000 2,000 243,000
Repayment of
loans (12,317) (42,916) (53,483) (79,538)
Deferred
financing
costs - - - (1,621)
Proceeds from
issuance of
common units 9,329 - 13,842 75,000
Capital
contribution
by general
partner 255 - 347 1,531
Costs
associated
with equity
transactions (381) (13) (438) (60)
Distributions
to partners (39,421) (61,630) (79,613) (124,688)
Net cash provided by (used
in) financing activities (42,535) (61,559) (117,345) 113,624
------- ------- -------- -------
Net (decrease) in cash and cash equivalents 15,187 29,051 (22,500) (44,220)
Cash and cash equivalents at beginning of
period 54,826 76,153 92,513 149,424
Cash and cash equivalents at end of period $70,013 $105,204 $70,013 $105,204
======= ======== ======= ========
Supplemental cash flow information:
Cash paid
during the
period for
interest $24,432 $12,784 $39,135 $29,085
======= ======= ======= =======
Natural Resource Partners L.P.
Consolidated Balance Sheets
(in thousands, except for unit information)
ASSETS
June December 31,
2014 2013
---- ----
(unaudited)
Current assets:
Cash and cash
equivalents $70,013 $92,513
Accounts receivable,
net of allowance for
doubtful accounts 34,718 33,737
Accounts
receivable -
affiliates 9,018 7,666
Other 1,291 1,691
Total
current
assets 115,040 135,607
Land 24,340 24,340
Plant and equipment, net 24,035 26,435
Mineral rights, net 1,391,439 1,405,455
Intangible assets, net 59,549 66,950
Equity and other unconsolidated investments 262,661 269,338
Loan financing costs, net 10,357 11,502
Long-term contracts receivable - affiliate 50,787 51,732
Other assets, net 600 497
Total
assets $1,938,808 $1,991,856
========== ==========
LIABILITIES AND PARTNERS' CAPITAL
Current liabilities:
Accounts payable
and accrued
liabilities $11,765 $8,659
Accounts
payable -
affiliates 445 391
Current portion
of long-term
debt 80,983 80,983
Accrued incentive
plan expenses -
current portion 6,880 8,341
Property, franchise
and other taxes
payable 6,981 7,830
Accrued
interest 15,412 17,184
Total
current
liabilities 122,466 123,388
Deferred revenue 149,685 142,586
Accrued incentive plan expenses 6,071 10,526
Other non-current liabilities 9,712 14,341
Long-term debt 1,033,041 1,084,226
Partners' capital:
Common units
outstanding (
110,869,513 and
109,812,408) 609,001 606,774
General
partner's
interest 10,124 10,069
Non-
controlling
interest (650) 324
Accumulated other
comprehensive
loss (642) (378)
Total
partners'
capital 617,833 616,789
------- -------
Total
liabilities
and
partners'
capital $1,938,808 $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 Six Months Ended
------------- ------------------------
June June June June
2014 2013 2014 2013
---- ---- ---- ----
(unaudited) (unaudited)
---------- ----------
Net cash provided by
operating activities $61,008 $79,736 $99,638 $123,649
Return on direct financing
lease and contractual
override 303 137 600 555
Distributions from
unconsolidated
investments(1) 3,633 10,777 3,633 10,777
Proceeds from sale of assets - - - 154
Distributable cash flow $64,944 $90,650 $103,871 $135,135
======= ======= ======== ========
Reconciliation of GAAP "Net cash provided by operating activities"
to Non-GAAP "Distributable cash flow"
Quarter Ended
-------------
June March
2014 2013
---- ----
(unaudited)
----------
Net cash provided by
operating activities $61,008 $38,630
Return on direct financing
lease and contractual
override 303 297
Distributions from
unconsolidated
investments(1) 3,633 -
Proceeds from sale of assets - -
Distributable cash flow $64,944 $38,927
======= =======
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 "EBITDA"
Quarter Ended For the Six Months Ended
------------- ------------------------
June June June June
2014 2013 2014 2013
---- ---- ---- ----
(unaudited) (unaudited)
---------- ----------
Net income $31,407 $41,065 $64,012 $88,971
Add depreciation, depletion
and amortization 16,350 17,411 30,997 32,173
Add asset impairments 5,624 443 5,624 734
Add interest expense, gross 19,037 14,440 38,897 29,103
Add depreciation, depletion and amortization
and interest relating to OCI Wyoming 4,760 2,709 9,368 5,702
EBITDA $77,178 $76,068 $148,898 $156,683
======= ======= ======== ========
EBITDA margin
EBITDA $77,178 $76,068 $148,898 $156,683
Total revenues $90,561 $86,804 $170,870 $181,136
EBITDA margin 85% 88% 87% 87%
Reconciliation of GAAP "Net income"
to Non-GAAP "EBITDA"
Quarter Ended
-------------
June March
2014 2014
---- ----
(unaudited)
----------
Net income $31,407 $32,605
Add depreciation, depletion
and amortization 16,350 14,647
Add asset impairments 5,624 -
Add interest expense, gross 19,037 19,860
Add depreciation, depletion and amortization
and interest relating to OCI Wyoming 4,760 4,608
EBITDA $77,178 $71,720
======= =======
EBITDA margin
EBITDA $77,178 $71,720
Total revenues $90,561 $80,309
EBITDA margin 85% 89%
Reconciliation of GAAP "Total operating costs and expenses"
to Non-GAAP "Total operating expenses before considering the
impairment"
Quarter Ended
-------------
June June
2014 2013
---- ----
(unaudited)
----------
Operating expenses
------------------
Total
operating
expenses
as
reported $40,158 $31,472
Impairments $(5,624) $(443)
Total
operating
costs
before
considering
the
impairment $34,534 $31,029
Reconciliation of GAAP "Net income attributable to the limited
partners"
to Non-GAAP "Net income attributable to the limited partners before
considering the impairment"
Quarter Ended
-------------
June June
2014 2013
---- ----
(unaudited)
----------
Net income attributable to
the limited partners
--------------------------
Net
income
as
reported $31,407 $41,065
Impairments 5,624 443
Net
income
before
considering
the
impairment $37,031 $41,508
Net income, before
considering the
impairment, attributable
to:
General
partner $741 $830
Limited
partners $36,290 $40,678
Reconciliation of GAAP "Basic and diluted net income per unit"
to Non-GAAP "Net income per unit before considering the impairment"
Quarter Ended
-------------
June June
2014 2013
---- ----
(unaudited)
----------
Net income per unit
-------------------
Net
income
per
unit
as
reported $0.28 $0.37
Adjustment
for
impairments 0.05 0.00
Net
income
per
limited
partner
unit,
before
considering
the
impairment $0.33 $0.37
Weighted
number
of
units
outstanding 110,403 109,812
* Numbers may not add due
to rounding
Reconciliation of GAAP "Total operating costs and expenses"
to Non-GAAP "Total operating expenses before considering the
impairment"
Quarter Ended
-------------
June March
2014 2014
---- ----
(unaudited)
----------
Operating expenses
------------------
Total
operating
expenses
as
reported $40,158 $27,870
Impairments (5,624) -
Total
operating
costs
before
considering
the
impairment $34,534 $27,870
Reconciliation of GAAP "Net income attributable to the limited
partners"
to Non-GAAP "Net income attributable to the limited partners
before considering the impairment"
Quarter Ended
-------------
June March
2014 2014
---- ----
(unaudited)
----------
Net income attributable to the
limited partners
------------------------------
Net
income
as
reported $31,407 $32,605
Impairments 5,624 -
Net
income
before
considering
the
impairment $37,031 $32,605
Net income, before considering
the impairment, attributable
to:
General
partner $741 $652
Limited
partners $36,290 $31,953
Reconciliation of GAAP "Basic and diluted net income per unit"
to Non-GAAP "Net income per unit before considering the
impairment"
Quarter Ended
-------------
June March
2014 2014
---- ----
(unaudited)
----------
Net income per unit
-------------------
Net
income
per
unit
as
reported $0.28 $0.29
Adjustment
for
impairments 0.05 -
Net
income
per
limited
partner
unit,
before
considering
the
impairment $0.33 $0.29
Weighted
number
of
units
outstanding 110,403 109,848
* Numbers may not add due to
rounding
Logo - http://photos.prnewswire.com/prnh/20060109/NRPLOGO
SOURCE Natural Resource Partners L.P.
