NATURAL RESOURCE PARTNERS LP HOUSTON, Nov. 4, 2014 /PRNewswire/ -- Natural Resource Partners L.P. (NYSE: NRP) today reported revenues of $91.6 million for the third quarter of 2014 compared to $82.2 million for the third quarter of 2013, and distributable cash flow, a non-GAAP measure, of $57.8 million compared to $104.6 million for the third quarter of 2013. Net income per unit was $0.32 for both the third quarter of 2014 and 2013. NRP reported EBITDA, a non-GAAP measure, of $78.3 million in the third quarter of 2014 compared to $72.9 million for the third quarter of 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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"We continued to benefit in the third quarter from our diverse portfolio of natural resource assets," said Wyatt Hogan, President. "All of our commodities performed in line with our expectations for the quarter, and we remain on track to meet our guidance for the year. Our acquisition of the VantaCore construction aggregates business and the recently announced acquisition of oil and gas interests in the Sanish Field in the Williston Basin will even further diversify NRP and contribute to our future growth. In addition, we saw increased coal production from our properties in all of our regions in the third quarter as compared to the second quarter, which is especially impressive in light of the continuing difficult market conditions for the coal industry."
Third Quarter 2014 compared to Third Quarter 2013
Highlights Quarter Ended For the Nine Months Ended
------------- -------------------------
September September % September September %
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 $91,609 $82,237 11% $262,479 $263,373 0%
------------------ ------- ------- --- -------- -------- ---
Coal production
(tons) 13,370 13,476 -1% 37,473 42,203 -11%
--------------- ------ ------ --- ------ ------ ---
Average coal royalty
revenue per ton $3.80 $3.88 -2% $3.74 $3.91 -4%
-------------------- ----- ----- --- ----- ----- ---
Coal royalty
revenues $50,870 $52,305 -3% $140,169 $164,957 -15%
------------ ------- ------- --- -------- -------- ---
Other coal related
revenue $14,323 $9,699 48% $32,758 $42,279 -23%
------------------ ------- ------ --- ------- ------- ---
Total coal related
revenues $65,193 $62,004 5% $172,927 $207,236 -17%
------------------ ------- ------- --- -------- -------- ---
Aggregates and
industrial minerals
related revenue(1) $12,340 $11,027 12% $38,479 $31,830 21%
-------------------- ------- ------- --- ------- ------- ---
Oil and gas related
revenue $9,601 $3,886 147% $37,481 $9,742 285%
------------------- ------ ------ --- ------- ------ ---
Operating Expenses $36,582 $30,613 19% $104,610 $93,889 11%
------------------ ------- ------- --- -------- ------- ---
Net income
----------
Net income to
limited partners $35,450 $35,403 0% $98,181 $122,595 -20%
----------------- ------- ------- --- ------- -------- ---
Net income per unit $0.32 $0.32 0% $0.89 $1.12 -21%
------------------- ----- ----- --- ----- ----- ---
Average units
outstanding 111,244 109,812 1% 110,504 109,507 1%
------------- ------- ------- --- ------- ------- ---
Net income before
considering any
impairments(2)
-----------------
Net income to
limited partners 35,450 35,403 0% 103,693 123,314 -16%
----------------- ------ ------ --- ------- ------- ---
Net income per unit $0.32 $0.32 0% $0.94 $1.13 -17%
------------------- ----- ----- --- ----- ----- ---
Distributable cash
flow(2) $57,773 $104,613 -45% $161,644 $239,748 -33%
------------------ ------- -------- --- -------- -------- ---
EBITDA(2) $78,284 $72,860 7% 227,182 229,543 -1%
-------- ------- ------- --- ------- ------- ---
EBITDA margin(2) 85% 89% -4% 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
Third quarter 2014 total revenues and other income increased 11% from the same period of 2013 due largely from NRP's diversification into other asset classes.
Average coal royalty revenue per ton decreased 3% on unchanged production resulting in a 3% reduction in coal royalty revenues in 2014 versus 2013. Gain on a reserve swap of $5.7 million more than offset reductions in total coal related revenues, resulting in an increase of $3.2 million over the third quarter 2013. Metallurgical coal accounted for 32% of NRP's coal production and 39% of its coal royalty revenues for the third quarter of 2014 compared to 35% of production and 47% of coal royalty revenues in the third quarter of 2013.
Revenues other than coal related revenues increased 31% from the third quarter of 2013 primarily due to increased oil and gas revenues and our investment in the soda ash business.
Oil and gas revenues more than doubled over the third quarter of 2013 to $9.6 million, primarily due to the revenues generated by NRP's Williston Basin properties acquired in the second half of 2013. NRP also recognized a 34% increase in the equity income associated with NRP's investment in the soda ash business due to an increase in OCI Wyoming's net income.
Operating expenses
Total operating expenses for the third quarter 2014 rose $6.0 million to $36.6 million from the third quarter 2013. The increase was mainly due to $1.7 million of additional operating expenses associated with NRP's Williston Basin oil and gas properties and a $2.5 million accrued liability relating to a payment due to a royalty owner on one of NRP's properties recorded in 2014.
Net income attributable to the limited partners
Net income attributable to the limited partners for both periods was approximately $35 million.
Distributable cash flow
Distributable cash flow decreased to $57.8 million from $104.6 million mainly due to a one-time special distribution of $44.8 million received from OCI Wyoming in 2013.
EBITDA
EBITDA for the third quarter 2014 grew $5.4 million to $78.3 million compared to EBITDA generated in the third quarter 2013 of $72.9 million.
Third Quarter 2014 compared to Second Quarter 2014
Highlights Quarter Ended
-------------
September 2014 June 2014 % Change
-------------- --------- --------
(in thousands, except
per ton and per unit)
----------------------
Revenues
and
other
income
--------
Total
revenues
and
other
income $91,609 $90,561 1%
--------- ------- ------- ---
Coal
production
(tons) 13,370 11,851 13%
----------- ------ ------ ---
Average
coal
royalty
revenue
per ton $3.80 $3.86 -1%
-------- ----- ----- ---
Coal
royalty
revenues $50,870 $45,763 11%
--------- ------- ------- ---
Other
coal
related
revenue $14,323 $9,598 49%
-------- ------- ------ ---
Total
coal
related
revenue $65,193 $55,361 18%
-------- ------- ------- ---
Aggregates
and
industrial
minerals
related
revenue(1) $12,340 $12,964 -5%
---------- ------- ------- ---
Oil and
gas
related
revenue $9,601 $17,822 -46%
-------- ------ ------- ---
Operating
expenses $36,582 $40,158 -9%
--------- ------- ------- ---
Net
income
-------
Net
income
to
limited
partners $35,450 $30,779 15%
--------- ------- ------- ---
Net
income
to the
limited
partners,
before
considering
any
impairments(2) $35,450 $36,290 -2%
--------------- ------- ------- ---
Net
income
per unit $0.32 $0.28 14%
--------- ----- ----- ---
Net
income
per
unit,
before
considering
any
impairments(2) $0.32 $0.33 -3%
--------------- ----- ----- ---
Average
units
outstanding 111,244 110,403 1%
------------ ------- ------- ---
Distributable
cash
flow(2) $57,773 $64,944 -11%
------------- ------- ------- ---
EBITDA(2) $78,284 $77,178 1%
-------- ------- ------- ---
EBITDA
margin(2) 85% 85% 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
Total revenues and other income for the third quarter increased $1.0 million or 1% from the second quarter, predominantly due to a $9.8 million increase in coal related revenues, offset by an $8.2 million decrease in oil and gas revenues. In the third quarter, NRP realized increased coal royalty revenues due to increased tonnage of 1.6 million tons over the second quarter resulting in a $5.1 million increase in coal royalty revenues. In addition, NRP realized a $5.7 million gain on a reserve swap related to coal properties. Oil and gas declined $8.2 million due to higher volumes and revenues recorded in the second quarter. These large fluctuations in oil and gas volumes and revenues are expected to moderate on a percentage basis following the acquisition of the additional Williston Basin assets that are scheduled to close in mid-November.
Operating expenses
Operating expenses decreased $3.6 million from the second quarter predominantly due to a $5.6 million asset impairment recognized in the second quarter, partially offset by a $2.5 million accrued liability associated with a payment due to a royalty owner on one of NRP's properties recorded in the third quarter.
Net income attributable to the limited partners
Net income attributable to the limited partners and net income per unit increased in the third quarter from the previous quarter by $4.7 million and $0.04 per unit, respectively. Before considering the non-cash impairment charge taken in the second quarter, net income attributable to the limited partners would have decreased by $0.8 million to $35.5 million while net income per unit would have decreased by $0.01 to $0.32 per unit.
Distributable cash flow
Distributable cash flow decreased $7.2 million to $57.8 million, down from $64.9 million reported in the second quarter due in part to a non-recurring distribution of $3.6 million received from OCI Wyoming in the second quarter as part of the completion of a restructuring that began in 2013.
EBITDA
EBITDA for the third quarter 2014 increased modestly over the second quarter to $78.3 million due to increased revenues.
Acquisitions and Liquidity
During the third quarter of 2014, NRP reduced its debt by $15.7 million bringing the total net reduction for the first nine months of the year to $69.2 million. Following the end of the quarter, NRP closed the VantaCore acquisition, issuing 2,426,690 common units and borrowing $169 million on NRP Operating's revolving credit facility. In addition, on October 6, NRP announced a definitive agreement to purchase certain non-operated working interests in the Williston Basin for $340 million. This acquisition is expected to close mid-November. In anticipation of this closing, NRP completed a common equity offering, issuing 8.5 million common units for net proceeds of $100.4 million and issued an additional $125 million of its 9.125% senior notes due 2018 in a private offering for net proceeds of $122.1 million. NRP anticipates funding the remainder of the purchase price using additional borrowings under the expected upsized NRP Oil and Gas revolving credit facility. Following these transactions, the current units outstanding are 122,278,412.
"After closing the VantaCore acquisition in October, and upon completion of the acquisition of the non-operated working interests in the Williston Basin, we anticipate combined borrowing capacity of approximately $145 million," said Dwight Dunlap, Chief Financial Officer. "That capacity along with our cash balance of $78 million as of September 30, 2014 will provide ample liquidity for NRP."
Distributions
As reported on October 20, 2014, the Board of Directors of NRP's general partner declared a quarterly distribution of $0.35 per unit for the third 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, making NRP 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 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, including interest, taxes, depreciation, depletion and amortization relating to OCI Wyoming. "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, risks relating to recent acquisitions 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 Nine Months Ended
------------- -------------------------
September September September September
2014 2013 2014 2013
---- ---- ---- ----
(unaudited) (unaudited)
---------- ----------
Regional Statistics
Coal royalty production (tons):
Appalachia
Northern 2,060 2,779 6,537 10,051
Central 5,432 5,116 15,096 16,062
Southern 1,017 921 2,950 3,188
----- --- ----- -----
Total Appalachia 8,509 8,816 24,583 29,301
Illinois Basin 3,526 3,635 10,064 9,541
Northern Powder
River Basin 1,054 735 2,106 2,499
Gulf Coast 281 290 720 862
Total 13,370 13,476 37,473 42,203
====== ====== ====== ======
Average royalty revenue per ton:
Appalachia
Northern $0.90 $1.04 $0.91 $1.19
Central 4.69 4.94 4.59 5.10
Southern 5.04 6.05 5.24 6.47
Total Appalachia 3.81 3.83 3.69 3.91
Illinois Basin 4.08 4.23 4.07 4.28
Northern Powder
River Basin 2.91 3.10 2.87 2.68
Gulf Coast 3.40 3.24 3.43 3.36
Combined average royalty revenue per ton $3.80 $3.88 $3.74 $3.91
Coal royalty revenues:
Appalachia
Northern $1,844 $2,882 $5,941 $12,008
Central 25,470 25,270 69,289 81,861
Southern 5,130 5,571 15,469 20,623
----- ----- ------ ------
Total Appalachia $32,444 $33,723 $90,699 $114,492
Illinois Basin 14,403 15,364 40,956 40,864
Northern Powder
River Basin 3,069 2,279 6,041 6,703
Gulf Coast 954 939 2,473 2,898
Total coal royalty revenues $50,870 $52,305 $140,169 $164,957
======= ======= ======== ========
Other coal related revenues:
Override revenue 771 2,269 3,516 8,713
Transportation
and processing
fees 5,589 6,005 16,682 17,010
Minimums
recognized as
revenue 1,396 626 4,204 5,613
Reserve swap 5,690 - 5,690 8,149
Wheelage 877 799 2,666 2,794
Total other
coal related
revenues $14,323 $9,699 $32,758 $42,279
======= ====== ======= =======
Total coal related revenues $65,193 $62,004 $172,927 $207,236
======= ======= ======== ========
Natural Resource Partners L.P.
Operating Statistics - Aggregates and Industrial Minerals
(in thousands except per ton data)
Quarter Ended For the Nine Months Ended
------------- -------------------------
September September September September
2014 2013 2014 2013
---- ---- ---- ----
(unaudited) (unaudited)
---------- ----------
Aggregate royalty revenues and production
Tonnage 702 1,767 2,844 4,513
Average royalty per
ton $0.79 $1.13 $0.94 $1.17
Total aggregate
royalty revenues $553 $1,996 $2,678 $5,299
Other aggregate related revenue
Override revenue $1,708 $658 $3,908 $2,298
Bonus revenue - 570 562 570
Processing fees 142 114 448 375
Minimums recognized
as revenue 110 372 1,617 812
Wheelage 142 79 401 308
Total other
aggregate related
revenue $2,102 $1,793 $6,936 $4,363
------ ------ ------ ------
Total aggregate
related revenues $2,655 $3,789 $9,614 $9,662
------ ------ ------ ------
Equity and other
unconsolidated
investment earnings $9,685 $7,238 $28,865 $22,168
Total aggregates and
industrial minerals
related revenue $12,340 $11,027 $38,479 $31,830
======= ======= ======= =======
Cash distributions
received from OCI
Wyoming $10,290 $46,007 $35,858 $72,946
Natural Resource Partners L.P.
Operating Statistics - Oil and Gas
(in thousands except per unit data)
Quarter Ended Nine Months Ended
------------- -----------------
September September September September
2014 2013 2014 2013
---- ---- ---- ----
(unaudited) (unaudited)
---------- ----------
Williston Basin non-operated working interests
Production volumes
Oil (MBbls) 77 N/A 284 N/A
Natural gas
(Mcf) 90 N/A 202 N/A
NGL (MBoe) 8 N/A 20 N/A
Average sales price per unit
Oil ($/Bbl) $84.65 N/A $92.82 N/A
Natural gas
($/Mcf) $5.11 N/A $6.45 N/A
NGL ($/Boe) $41.00 N/A $45.55 N/A
Revenues
Oil $6,518 N/A $26,360 N/A
Natural gas $460 N/A $1,303 N/A
NGL $328 N/A $911 N/A
---- --- ---- ---
Total $7,306 N/A $28,574 N/A
Other oil and gas related revenues
Royalty and
overriding
revenues $2,295 $3,886 $8,907 $9,742
Total oil and
gas revenues $9,601 $3,886 $37,481 $9,742
====== ====== ======= ======
Natural Resource Partners L.P.
Consolidated Statements of Comprehensive Income
(in thousands, except per unit data)
Quarter Ended For the Nine Months Ended
------------- -------------------------
September September September September
2014 2013 2014 2013
---- ---- ---- ----
(unaudited) (unaudited)
---------- ----------
Revenues and other income:
Coal related
revenues $65,193 $62,004 $172,927 $207,236
Aggregate
related
revenues 2,655 3,789 9,614 9,662
Oil and gas
related
revenues 9,601 3,886 37,481 9,742
Equity and
other
unconsolidated
investment
income 9,685 7,238 28,865 22,168
Property taxes 3,520 4,009 10,865 11,805
Other 955 1,311 2,727 2,760
Total revenues and other
income 91,609 82,237 262,479 263,373
Operating expenses:
Depreciation,
depletion and
amortization 18,621 17,852 49,618 50,025
Asset
impairments - - 5,624 734
General and
administrative 7,664 7,305 22,550 27,769
Property,
franchise and
other taxes 4,767 4,234 15,836 12,810
Oil and gas
lease
operating
expenses 2,147 483 6,359 483
Transportation
costs 354 455 1,238 1,242
Royalty
payments 3,029 284 3,385 826
Total operating expenses 36,582 30,613 104,610 93,889
------ ------ ------- ------
Income from operations 55,027 51,624 157,869 169,484
Other income (expense) -
Interest
expense (18,862) (15,516) (57,759) (44,619)
Interest
income 8 18 75 232
Income before non-controlling interest $36,173 $36,126 $100,185 $125,097
Non-
controlling
interest - - - -
Net income $36,173 $36,126 $100,185 $125,097
======= ======= ======== ========
Net income attributable to:
General
partner $723 $723 $2,004 $2,502
Limited
partners $35,450 $35,403 $98,181 $122,595
Basic and diluted net income per
limited partner unit:
$0.32 $0.32 $0.89 $1.12
Weighted average number of units
outstanding: 111,244 109,812 110,504 109,507
======= ======= ======= =======
Comprehensive income $36,543 $36,167 $100,291 $125,243
======= ======= ======== ========
Natural Resource Partners L.P.
Consolidated Statements of Cash Flow
(in thousands, except per unit data)
Quarter Ended For the Nine Months Ended
------------- -------------------------
September September September September
2014 2013 2014 2013
---- ---- ---- ----
(unaudited) (unaudited)
---------- ----------
Cash flows from operating activities:
Net income $36,173 $36,126 $100,185 $125,097
Adjustments to
reconcile net
income to net
cash provided by
operating
activities:
Depreciation,
depletion and
amortization 18,621 17,852 49,618 50,025
Gain on
reserve swap (5,690) - (5,690) (8,149)
Equity and
other
unconsolidated
investment
income (9,685) (7,238) (28,865) (22,168)
Distributions
of earnings
from
unconsolidated
investments 10,290 7,951 32,225 24,113
Non-cash
interest
charge, net 677 899 2,145 1,454
Gain on sale
of assets (3) (401) (3) (551)
Asset
impairment - - 5,624 734
Change in
operating assets
and liabilities:
Accounts
receivable (3,857) 5,227 (7,542) 9,477
Other assets 432 3,849 750 864
Accounts
payable and
accrued
liabilities 2,036 571 1,623 792
Accrued
interest 4,964 (2,022) 3,192 (2,598)
Deferred
revenue 4,246 3,380 11,345 13,331
Accrued
incentive
plan expenses 471 1,139 (5,445) (80)
Property,
franchise and
other taxes
payable (1,217) (1,467) (2,066) (2,826)
Net cash provided by
operating activities: 57,458 65,866 157,096 189,515
------ ------ ------- -------
Cash flows from investing activities:
Acquisition of
plant and
equipment (72) - (207) -
Acquisition of
land, coal,
other mineral
rights, and
related
intangibles - (38,303) (768) (38,303)
Oil and gas
capital
expenditures (5,144) - (13,267) -
Acquisition of
equity
interests - (98) - (293,077)
Distributions
from
unconsolidated
investments - 38,056 3,633 48,833
Proceeds from
sale of
assets 5 405 5 559
Return on
direct
financing
lease and
contractual
override 310 286 910 841
Net cash used in investing
activities (4,901) 346 (9,694) (281,147)
------ --- ------ --------
Cash flows from financing activities:
Proceeds from
loans - 304,020 2,000 547,020
Repayment of
loans (15,692) (306,692) (69,175) (386,230)
Deferred
financing
costs - (7,440) - (9,061)
Proceeds from
issuance of
common units 10,984 - 24,826 75,000
Capital
contribution
by general
partner 160 - 507 1,531
Costs
associated
with equity
transactions (163) - (601) (60)
Distributions
to partners (39,733) (61,629) (119,346) (186,317)
Net cash provided by (used
in) financing activities (44,444) (71,741) (161,789) 41,883
------- ------- -------- ------
Net increase (decrease) in cash and cash
equivalents 8,113 (5,529) (14,387) (49,749)
Cash and cash equivalents at beginning of
period 70,013 105,204 92,513 149,424
Cash and cash equivalents at end of period $78,126 $99,675 $78,126 $99,675
======= ======= ======= =======
Supplemental cash flow information:
Cash paid
during the
period for
interest $13,131 $16,631 $52,266 $45,716
======= ======= ======= =======
Natural Resource Partners L.P.
Consolidated Balance Sheets
(in thousands, except for unit information)
ASSETS
September December 31,
2014 2013
---- ----
(unaudited)
Current assets:
Cash and cash
equivalents $78,126 $92,513
Accounts receivable, net
of allowance for
doubtful accounts 33,954 33,737
Accounts
receivable -
affiliates 10,547 7,666
Other 899 1,691
Total
current
assets 123,526 135,607
Land 24,338 24,340
Plant and equipment, net 22,839 26,435
Mineral rights, net 1,385,919 1,405,455
Intangible assets, net 58,696 66,950
Equity and other unconsolidated investments 262,414 269,338
Loan financing costs, net 9,841 11,502
Long-term contracts receivable - affiliate 50,411 51,732
Other assets 560 497
Total
assets $1,938,544 $1,991,856
========== ==========
LIABILITIES AND PARTNERS' CAPITAL
Current liabilities:
Accounts payable
and accrued
liabilities $13,907 $8,659
Accounts
payable -
affiliates 485 391
Current portion
of long-term
debt 80,983 80,983
Accrued incentive
plan expenses -
current portion 6,535 8,341
Property, franchise
and other taxes
payable 5,764 7,830
Accrued
interest 20,376 17,184
Total
current
liabilities 128,050 123,388
Deferred revenue 153,931 142,586
Accrued incentive plan expenses 6,887 10,526
Other non-current liabilities 9,712 14,341
Long-term debt 1,017,498 1,084,226
Partners' capital:
Common units outstanding
( 111,351,722 and
109,812,408) 613,176 606,774
General
partner's
interest 10,212 10,069
Non-
controlling
interest (650) 324
Accumulated other
comprehensive
loss (272) (378)
Total
partners'
capital 622,466 616,789
------- -------
Total
liabilities
and
partners'
capital $1,938,544 $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 Nine Months Ended
------------- -------------------------
September September September September
2014 2013 2014 2013
---- ---- ---- ----
(unaudited) (unaudited)
---------- ----------
Net cash provided by
operating activities $57,458 $65,866 $157,096 $189,515
Return on direct financing
lease and contractual
override 310 286 910 841
Distributions from
unconsolidated investments - 38,056 3,633 48,833
Proceeds from sale of
assets 5 405 5 559
Distributable cash flow $57,773 $104,613 $161,644 $239,748
======= ======== ======== ========
Reconciliation of GAAP "Net cash provided by operating activities"
to Non-GAAP "Distributable cash flow"
Quarter Ended
-------------
September June
2014 2013
---- ----
(unaudited)
----------
Net cash provided by
operating activities $57,458 $61,008
Return on direct financing
lease and contractual
override 310 303
Distributions from
unconsolidated investments - 3,633
Proceeds from sale of
assets 5 -
Distributable cash flow $57,773 $64,944
======= =======
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 Nine Months Ended
------------- -------------------------
September September September September
2014 2013 2014 2013
---- ---- ---- ----
(unaudited) (unaudited)
---------- ----------
Net income $36,173 $36,126 $100,185 $125,097
Add depreciation, depletion
and amortization 18,621 17,852 49,618 50,025
Add asset impairments - - 5,624 734
Add interest expense, gross 18,862 15,516 57,759 44,619
Add depreciation, depletion
and amortization, taxes
and interest relating to
OCI Wyoming 4,628 3,366 13,996 9,068
EBITDA $78,284 $72,860 $227,182 $229,543
======= ======= ======== ========
EBITDA margin
EBITDA $78,284 $72,860 $227,182 $229,543
Total revenues $91,609 $82,237 $262,479 $263,373
EBITDA margin 85% 89% 87% 87%
Reconciliation of GAAP "Net income"
to Non-GAAP "EBITDA"
Quarter Ended
-------------
September June
2014 2014
---- ----
(unaudited)
----------
Net income $36,173 $31,407
Add depreciation, depletion
and amortization 18,621 16,350
Add asset impairments - 5,624
Add interest expense, gross 18,862 19,037
Add depreciation, depletion
and amortization, taxes
and interest relating to
OCI Wyoming 4,628 4,760
EBITDA $78,284 $77,178
======= =======
EBITDA margin
EBITDA $78,284 $77,178
Total revenues $91,609 $90,561
EBITDA margin 85% 85%
Reconciliation of GAAP "Total operating costs and expenses"
to Non-GAAP "Total operating expenses before considering any impairments"
Quarter Ended For the Nine Months Ended
------------- -------------------------
September September September September
2014 2013 2014 2013
---- ---- ---- ----
(unaudited) (unaudited)
---------- ----------
Operating expenses
------------------
Total operating
expenses as
reported $36,582 $30,613 $104,610 $93,889
Impairments $ - $ - $(5,624) $(734)
Total operating
costs before
considering any
impairments $36,582 $30,613 $98,986 $93,155
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 Nine Months Ended
------------- -------------------------
September September September September
2014 2013 2014 2013
---- ---- ---- ----
(unaudited) (unaudited)
---------- ----------
Net income attributable to the limited partners
--------------------------------
Net income as
reported $36,173 $36,126 $100,185 $125,097
Impairments - - $5,624 $734
Net income before
considering any
impairments $36,173 $36,126 $105,809 $125,831
Net income, before considering any impairments,
attributable to:
General partner $723 $723 $2,116 $2,517
Limited partners $35,450 $35,403 $103,693 $123,314
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 Nine Months Ended
------------- -------------------------
September September September September
2014 2013 2014 2013
---- ---- ---- ----
(unaudited) (unaudited)
---------- ----------
Net income per unit *
-------------------
Net income per
unit as reported $0.32 $0.32 $0.89 $1.12
Adjustment for
impairments - - $0.05 $0.01
Net income per
limited partner
unit, before
considering any
impairments $0.32 $0.32 $0.94 $1.13
Weighted number
of units
outstanding 111,244 109,812 110,504 109,507
* Numbers may not add due to rounding
Reconciliation of GAAP "Total operating costs and expenses"
to Non-GAAP "Total operating expenses before considering any
impairments"
Quarter Ended
-------------
September June
2014 2014
---- ----
(unaudited)
----------
Operating expenses
------------------
Total
operating
expenses
as
reported $36,582 $40,158
Impairments - (5,624)
Total
operating
costs
before
considering
any
impairments $36,582 $34,534
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
-------------
September June
2014 2014
---- ----
(unaudited)
----------
Net income attributable to
the limited partners
--------------------------
Net
income
as
reported $36,173 $31,407
Impairments - 5,624
Net
income
before
considering
any
impairments $36,173 $37,031
Net income, before
considering any impairments,
attributable to:
General
partner $723 $741
Limited
partners $35,450 $36,290
Reconciliation of GAAP "Basic and diluted net income per
unit"
to Non-GAAP "Net income per unit before considering any
impairments"
Quarter Ended
-------------
September June
2014 2014
---- ----
(unaudited)
----------
Net income per unit
-------------------
Net
income
per
unit
as
reported $0.32 $0.28
Adjustment
for
impairments - 0.05
Net
income
per
limited
partner
unit,
before
considering
any
impairments $0.32 $0.33
Weighted
number
of
units
outstanding 111,244 110,403
* Numbers may not add due to
rounding
Logo - http://photos.prnewswire.com/prnh/20060109/NRPLOGO
SOURCE Natural Resource Partners L.P.
