Generates Operating Cash Flow of
$386 million
Initiates Robust Shareholder Return
Program
ST.
LOUIS, April 27, 2023 /PRNewswire/ -- Peabody
(NYSE: BTU) today reported net income attributable to common
stockholders of $268.5 million, or
$1.68 per diluted share, for the
first quarter of 2023, compared to a net loss attributable to
common stockholders of $119.5
million, or $0.88 per diluted
share in the prior year quarter. Peabody had Adjusted
EBITDA1 of $390.6 million
in the first quarter of 2023 compared to $327.5 million in the first quarter of 2022.
"In the first quarter of 2023, we safely delivered on our
commitments and produced another strong quarter of financial
results with Adjusted EBITDA of $391
million, up nearly 20 percent from the first quarter of
2022," said Peabody President and Chief Executive Officer
Jim Grech. "After retiring
$1.5 billion in secured debt, we have
now delivered on our commitments to pre-fund reclamation costs and
initiate a plan to return value to shareholders through share
repurchases and dividends."
Highlights
- Initiated robust shareholder return program and announced a
$1.0 billion share repurchase
authorization
- First quarter Adjusted EBITDA of $391
million and Operating Cash Flow of $386 million
- Exceeded anticipated Seaborne Thermal export volumes by 17
percent, shipping 2.1 million tons
- Safely completed a longwall move at Wambo
- Completed pre-funding of all long-term mine closure and
reclamation obligations
- Eliminated the bank letter of credit facility increasing
financial flexibility and further reducing fixed charges
___________________________________________
|
1 Adjusted
EBITDA and Available Free Cash Flow are non-GAAP financial
measures. Adjusted EBITDA margin is equal to segment Adjusted
EBITDA divided by segment revenue. Revenue per Ton and Adjusted
EBITDA Margin per Ton are equal to revenue by segment and Adjusted
EBITDA by segment, respectively, divided by segment tons sold.
Costs per Ton is equal to Revenue per Ton less Adjusted EBITDA
Margin per Ton. Management believes Costs per Ton and Adjusted
EBITDA Margin per Ton best reflect controllable costs and operating
results at the reporting segment level. We consider all measures
reported on a per ton basis, as well as Adjusted EBITDA margin, to
be operating/statistical measures. Please refer to the tables and
related notes in this press release for a reconciliation and
definition of non-GAAP financial measures.
|
Segment Performance
Seaborne
Thermal
|
|
Quarter
Ended
|
|
Mar.
|
|
Dec.
|
|
Mar.
|
|
2023
|
|
2022
|
|
2022
|
Tons sold (in
millions)
|
3.6
|
|
4.1
|
|
3.8
|
Export
|
2.1
|
|
2.3
|
|
1.8
|
Domestic
|
1.5
|
|
1.8
|
|
2.0
|
Revenue per
Ton
|
$
96.82
|
|
$
93.79
|
|
$
66.86
|
Export - Avg.
Realized Price per Ton
|
148.34
|
|
151.61
|
|
118.85
|
Domestic - Avg.
Realized Price per Ton
|
25.05
|
|
22.98
|
|
20.34
|
Costs per
Ton
|
51.01
|
|
43.10
|
|
42.77
|
Adjusted EBITDA
Margin per Ton
|
$
45.81
|
|
$
50.69
|
|
$
24.09
|
Adjusted EBITDA (in
millions)
|
$
164.0
|
|
$
209.1
|
|
$
90.5
|
During the first quarter, the seaborne thermal segment shipped
3.6 million tons, including 2.1 million export tons.
Export shipments were 0.2 million tons lower than the fourth
quarter due to a longwall move at Wambo and continued recovery from
heavy rains in the fourth quarter of 2022. The average
realized export price was nearly flat with the fourth quarter of
2022 as lower hedged ton settlement volumes offset a 33% decline in
average Newcastle benchmark prices. Total segment costs of
$51.01 per ton were 18 percent higher
than the fourth quarter primarily due to anticipated lower
production and less favorable AUD exchange rates. The segment
reported Adjusted EBITDA margins of 47 percent and Adjusted EBITDA
of $164.0 million, in the first
quarter.
Seaborne
Metallurgical
|
|
Quarter
Ended
|
|
Mar.
|
|
Dec.
|
|
Mar.
|
|
2023
|
|
2022
|
|
2022
|
Tons sold (in
millions)
|
1.3
|
|
2.0
|
|
1.2
|
Revenue per
Ton
|
$
220.60
|
|
$
219.81
|
|
$
258.43
|
Costs per
Ton
|
151.13
|
|
128.14
|
|
112.87
|
Adjusted EBITDA
Margin per Ton
|
$
69.47
|
|
$
91.67
|
|
$
145.56
|
Adjusted EBITDA (in
millions)
|
$
90.8
|
|
$
187.8
|
|
$
181.0
|
During the first quarter, the seaborne met segment shipped 1.3
million tons at an average realized price of $220.60 per ton. Tons sold were 0.7 million
tons lower than the prior quarter due to lower production at Shoal
Creek and CMJV (rail and port congestion from heavy rains in
January), partially offset by higher production at
Metropolitan. Total segment costs of $151.13 per ton were 18 percent higher than the
prior quarter primarily due to anticipated lower production and
less favorable AUD exchange rates. The segment reported 31
percent Adjusted EBITDA margins and Adjusted EBITDA of $90.8 million, in the first quarter.
Powder River
Basin
|
|
Quarter
Ended
|
|
Mar.
|
|
Dec.
|
|
Mar.
|
|
2023
|
|
2022
|
|
2022
|
Tons sold (in
millions)
|
22.0
|
|
21.2
|
|
20.6
|
Revenue per
Ton
|
$
13.89
|
|
$
13.88
|
|
$
12.18
|
Costs per
Ton
|
12.26
|
|
12.71
|
|
11.81
|
Adjusted EBITDA
Margin per Ton
|
$
1.63
|
|
$
1.17
|
|
$
0.37
|
Adjusted EBITDA (in
millions)
|
$
35.8
|
|
$
24.7
|
|
$
7.6
|
The PRB segment shipped 22.0 million tons at an average realized
price of $13.89 per ton in the first
quarter, a 14 percent increase in price over first quarter
2022. Tons sold increased by approximately 0.8 million tons
over the fourth quarter, due to higher customer nominations and
improving rail performance. PRB costs of $12.26 per ton were higher than anticipated due
to the timing of equipment repair and maintenance costs. The
segment reported 12 percent Adjusted EBITDA margins and Adjusted
EBITDA of $35.8 million, in the first
quarter.
Other U.S.
Thermal
|
|
Quarter
Ended
|
|
Mar.
|
|
Dec.
|
|
Mar.
|
|
2023
|
|
2022
|
|
2022
|
Tons sold (in
millions)
|
4.5
|
|
5.0
|
|
4.2
|
Revenue per
Ton
|
$
54.73
|
|
$
52.35
|
|
$
48.46
|
Costs per
Ton
|
40.65
|
|
40.84
|
|
36.54
|
Adjusted EBITDA
Margin per Ton
|
$
14.08
|
|
$
11.51
|
|
$
11.92
|
Adjusted EBITDA (in
millions)
|
$
64.2
|
|
$
57.8
|
|
$
50.0
|
During the first quarter, the other U.S. thermal segment shipped
4.5 million tons at an average realized price of $54.73 per ton, a 5 percent increase compared to
the prior quarter. Costs per ton of $40.65 per ton were in-line with the prior
quarter. The segment reported 26 percent Adjusted EBITDA
margins and Adjusted EBITDA of $64.2
million, in the first quarter.
Other
In the first quarter, the Company recorded favorable trading
results of $34 million primarily
related to the timing of favorably priced deliveries relative to
prevailing market prices, $19.2
million in revenue related to the sale of excess port and
rail capacity, and $1.8 million of
Income from Equity Affiliates, primarily from its fifty percent
interest in Middlemount.
Shoal Creek Update
On March 29, 2023, the Shoal Creek Mine experienced a fire
involving void fill material utilized to stabilize the roof
structure of the mine. All mine personnel were safely
evacuated from the mine. MSHA has allowed mine rescue-
equipped personnel into the mine at various times to assess the
situation and perform work in preparation for installing temporary
seals. On April 26, MSHA
approved a temporary sealing program limited to the affected
underground area.
Balance Sheet and Cash Flow
Peabody ended the quarter with $892.2
million of cash and cash equivalents and $936.7 million of restricted cash and collateral,
including $760 million for
reclamation obligations and $177
million for port and rail commitments and other performance
guarantees. In the first quarter, the Company generated
$386.3 million of cash flow from
operations. Cash margin required for the Company's coal
hedging activities decreased to $59.8
million at March 31,
2023.
In April, Peabody announced an amended agreement with the
providers of its $1.3 billion surety
program to establish a collateral limit through December 31, 2026 and remove all restrictions on
shareholder returns, subject to certain liquidity
requirements. Additionally, Peabody terminated the bank
letter of credit facility which was previously used for surety
collateral.
Shareholder Return Program
Peabody previously announced a new shareholder return framework
which includes a share repurchase plan, a fixed quarterly cash
dividend and a variable quarterly cash dividend component.
The Board also approved a new share repurchase program
authorizing repurchases of up to $1.0
billion of BTU common stock.
Peabody plans to return to shareholders at least 65 percent of
annual Available Free Cash Flow1 (AFCF) retroactive to
January 1, 2023. AFCF is
defined as quarterly operating cash flow minus investing cash flow;
distributions to noncontrolling interests; plus/minus changes to
restricted cash and collateral and other anticipated
expenditures.
|
Quarter
Ended
|
|
Mar.
|
|
2023
|
Cash Flow from
Operations:
|
$
386.3
|
- Cash Flows
used in Investing Activities
|
(58.5)
|
- Distributions
to Noncontrolling Interest
|
(22.8)
|
+/- Changes to
Restricted Cash and Collateral (1)
|
(43.1)
|
- Anticipated
Expenditures or Other Requirements
|
—
|
Available Free Cash
Flow (AFCF)
|
261.9
|
Allocation for
shareholder returns
|
65 %
|
Total shareholder
returns
|
170.2
|
- Declared
dividends
|
(10.9)
|
Total available for
share repurchases
|
$
159.3
|
|
(1) This amount is
equal to the total change in Restricted Cash and Collateral on the
balance sheet,
excluding amounts already included in cash flow from operations and
the $660 million one-time funding
related to the surety program amendment.
|
As previously announced, first quarter shareholder returns will
include a $0.075 per share regular
dividend ($10.9 million) and
repurchases of Peabody common stock. Peabody continues to
anticipate the second quarter 2023 shareholder return will include
the regular quarterly cash dividend with the remaining 65 percent
of AFCF to be returned to shareholders exclusively through share
repurchases. Peabody plans to transition to a more balanced
shareholder return program of fixed quarterly cash dividends,
variable dividends and share repurchases in the second half of
2023. All shareholder returns remain at the discretion of the
Board of Directors.
Second Quarter 2023 Outlook
Seaborne Thermal
- Volumes are expected to be 4.0 million tons, including 2.6
million export tons. 1.0 million export tons are priced at
$243 per ton (including the remaining
336 thousand metric tons hedged at $84 per metric tonne), and approximately 1.2
million tons of high ash product and 0.4 million tons of Newcastle
product are unpriced.
- Costs are expected to be $50-$55 per
ton.
Seaborne Metallurgical
- Seaborne met volumes are expected to be 1.7 million tons. 0.5
million tons are priced at $244 per
ton. The remaining unpriced volumes are expected to achieve 75 to
80 percent of the premium hard coking coal price index.
- Costs are expected to be $135-$145 per
ton.
U.S. Thermal
- PRB volume is expected to be approximately 21 million tons at
an average price of $13.70 per ton
and cost of approximately $12.00 per
ton.
- Other U.S. Thermal volume is expected to be approximately 4.3
million tons at an average price of $52.50 per ton and cost of approximately
$41 per ton.
Today's earnings call is scheduled for 10
a.m. CT and can be accessed via the company's website at
PeabodyEnergy.com.
Peabody (NYSE: BTU) is a leading coal producer, providing
essential products for the production of affordable, reliable
energy and steel. Our commitment to sustainability underpins
everything we do and shapes our strategy for the future. For
further information, visit PeabodyEnergy.com.
Contact:
Karla Kimrey
314.342.7890
Guidance Targets
Segment
Performance
|
|
|
|
|
|
|
|
2023 Full
Year
|
|
|
Total Volume
(millions of
short
tons)
|
Priced Volume
(millions of
short tons)
|
Priced Volume
Pricing per
Short Ton
|
Average Cost
per Short Ton
|
Seaborne
Thermal
|
14.5 - 15.5
|
8.6
|
$81.80
|
$52.00 -
$57.00
|
Seaborne Thermal
(Export)
|
9 - 10
|
3.1
|
$179.35
|
NA
|
Seaborne Thermal
(Domestic)
|
~5.5
|
5.5
|
$26.80
|
NA
|
Seaborne
Metallurgical
|
7 - 8
|
1.8
|
$226.00
|
$120.00 -
$130.00
|
PRB U.S.
Thermal
|
85 - 95
|
91
|
$13.70
|
$11.25 -
$12.00
|
Other U.S.
Thermal
|
18 - 19
|
18
|
$51.35
|
$38.00 -
$42.00
|
|
|
|
|
|
Other Annual
Financial Metrics ($ in millions)
|
|
|
2023 Full
Year
|
|
|
SG&A
|
$90
|
|
|
|
Major Project / Growth
Capital Expenditures
|
$200
|
|
|
|
Total Capital
Expenditures
|
$325
|
|
|
|
ARO Cash
Spend
|
$60 - $70
|
|
|
|
|
|
|
|
|
|
Supplemental
Information
|
|
|
|
|
|
|
Seaborne
Thermal
|
45% of unpriced export
volumes are expected to price on average at Globalcoal "NEWC"
levels and 55% are expected
to have a higher ash content and price at 80-95% of API 5 price
levels.
|
|
|
Seaborne
Metallurgical
|
On average, Peabody's
metallurgical sales are anticipated to price at 75-80% of the
premium hard-coking coal index
price (FOB Australia).
|
|
|
PRB and Other U.S.
Thermal
|
PRB and Other U.S.
Thermal volumes reflect volumes priced at March 31, 2023. Weighted
average quality for the PRB
segment 2023 volume is approximately 8650 BTU.
|
Certain forward-looking measures and metrics presented are
non-GAAP financial and operating/statistical measures. Due to the
volatility and variability of certain items needed to reconcile
these measures to their nearest GAAP measure, no reconciliation can
be provided without unreasonable cost or effort.
Condensed
Consolidated Statements of Operations (Unaudited)
|
|
|
For the Quarters
Ended Mar. 31, 2023, Dec. 31, 2022 and Mar. 31, 2022
|
|
|
|
|
|
|
|
|
(In Millions, Except
Per Share Data)
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
|
Mar.
|
|
Dec.
|
|
Mar.
|
|
|
2023
|
|
2022
|
|
2022
|
|
|
|
|
|
|
|
Tons Sold
|
31.5
|
|
32.5
|
|
29.9
|
|
|
|
|
|
|
|
Revenue
(1)
|
$
1,364.0
|
|
$
1,626.1
|
|
$
691.4
|
Operating Costs and
Expenses (2)
|
846.6
|
|
927.8
|
|
699.0
|
Depreciation, Depletion
and Amortization
|
76.3
|
|
90.2
|
|
72.9
|
Asset Retirement
Obligation Expenses
|
15.4
|
|
8.6
|
|
15.0
|
Selling and
Administrative Expenses
|
22.8
|
|
24.3
|
|
23.1
|
Restructuring
Charges
|
0.1
|
|
0.1
|
|
1.6
|
Other Operating
(Income) Loss:
|
|
|
|
|
|
Net Gain on
Disposals
|
(1.9)
|
|
(6.5)
|
|
(4.9)
|
Asset
Impairment
|
2.0
|
|
9.5
|
|
—
|
Income from Equity
Affiliates
|
(1.8)
|
|
(10.3)
|
|
(44.7)
|
Operating Profit
(Loss)
|
404.5
|
|
582.4
|
|
(70.6)
|
Interest
Expense
|
18.4
|
|
29.5
|
|
39.4
|
Net Loss on Early Debt
Extinguishment
|
6.8
|
|
23.4
|
|
23.5
|
Interest
Income
|
(13.1)
|
|
(12.1)
|
|
(0.5)
|
Net Periodic Benefit
Credit, Excluding Service Cost
|
(9.7)
|
|
(12.3)
|
|
(12.2)
|
Net Mark-to-Market
Adjustment on Actuarially Determined Liabilities
|
—
|
|
(27.8)
|
|
—
|
Income (Loss) from
Continuing Operations Before Income Taxes
|
402.1
|
|
581.7
|
|
(120.8)
|
Income Tax Provision
(Benefit)
|
118.0
|
|
(59.8)
|
|
(1.0)
|
Income (Loss) from
Continuing Operations, Net of Income Taxes
|
284.1
|
|
641.5
|
|
(119.8)
|
(Loss) Income from
Discontinued Operations, Net of Income Taxes
|
(1.3)
|
|
4.0
|
|
(0.8)
|
Net Income
(Loss)
|
282.8
|
|
645.5
|
|
(120.6)
|
Less: Net Income (Loss)
Attributable to Noncontrolling Interests
|
14.3
|
|
13.5
|
|
(1.1)
|
Net Income (Loss)
Attributable to Common Stockholders
|
$
268.5
|
|
$
632.0
|
|
$
(119.5)
|
|
|
|
|
|
|
|
Adjusted EBITDA
(3)
|
$
390.6
|
|
$
500.5
|
|
$
327.5
|
|
|
|
|
|
|
Diluted EPS - Income
(Loss) from Continuing Operations (4)(5)
|
$
1.69
|
|
$
3.89
|
|
$
(0.87)
|
|
|
|
|
|
|
|
Diluted EPS - Net
Income (Loss) Attributable to Common Stockholders
(4)
|
$
1.68
|
|
$
3.92
|
|
$
(0.88)
|
|
(1)
|
Includes net gains of
$118.7 million and $199.3 million and a net loss of $301.0 million
related to unrealized mark-to-market adjustments on derivatives
related to forecasted sales during the quarters ended March 31,
2023, December 31, 2022 and March 31, 2022,
respectively.
|
(2)
|
Excludes items shown
separately.
|
(3)
|
Adjusted EBITDA is a
non-GAAP financial measure. Refer to the "Reconciliation of
Non-GAAP Financial Measures" section in this document for
definitions and reconciliations to the most comparable measures
under U.S. GAAP.
|
(4)
|
Weighted average
diluted shares outstanding were 161.4 million, 161.9 million and
136.2 million during the quarters ended March 31, 2023, December
31, 2022 and March 31, 2022, respectively.
|
(5)
|
Reflects income (loss)
from continuing operations, net of income taxes less net income
(loss) attributable to noncontrolling interests.
|
|
This information is
intended to be reviewed in conjunction with the company's filings
with the SEC.
|
Condensed
Consolidated Balance Sheets
|
|
As of Mar. 31, 2023
and Dec. 31, 2022
|
|
|
|
|
|
(Dollars In
Millions)
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
Mar. 31,
2023
|
|
Dec. 31,
2022
|
Cash and Cash
Equivalents
|
$
892.2
|
|
$
1,307.3
|
Accounts Receivable,
Net
|
394.7
|
|
465.5
|
Inventories,
Net
|
331.5
|
|
296.1
|
Other Current
Assets
|
260.1
|
|
303.6
|
Total Current
Assets
|
1,878.5
|
|
2,372.5
|
Property, Plant,
Equipment and Mine Development, Net
|
2,847.9
|
|
2,865.0
|
Operating Lease
Right-of-Use Assets
|
22.7
|
|
26.9
|
Restricted Cash and
Collateral
|
936.7
|
|
187.4
|
Investments and Other
Assets
|
85.6
|
|
84.3
|
Deferred Income
Taxes
|
28.5
|
|
74.7
|
Total
Assets
|
$
5,799.9
|
|
$
5,610.8
|
|
|
|
|
|
Current Portion of
Long-Term Debt
|
$
13.2
|
|
$
13.2
|
Accounts Payable and
Accrued Expenses
|
853.2
|
|
905.5
|
Total Current
Liabilities
|
866.4
|
|
918.7
|
Long-Term Debt, Less
Current Portion
|
322.4
|
|
320.6
|
Deferred Income
Taxes
|
20.2
|
|
20.4
|
Asset Retirement
Obligations
|
668.3
|
|
665.8
|
Accrued Postretirement
Benefit Costs
|
155.6
|
|
156.5
|
Operating Lease
Liabilities, Less Current Portion
|
6.9
|
|
11.0
|
Other Noncurrent
Liabilities
|
230.4
|
|
223.0
|
Total
Liabilities
|
2,270.2
|
|
2,316.0
|
|
|
|
|
|
Common Stock
|
1.9
|
|
1.9
|
Additional Paid-in
Capital
|
3,977.6
|
|
3,975.9
|
Treasury
Stock
|
(1,386.1)
|
|
(1,372.9)
|
Retained
Earnings
|
652.4
|
|
383.9
|
Accumulated Other
Comprehensive Income
|
228.9
|
|
242.5
|
Peabody Energy
Corporation Stockholders' Equity
|
3,474.7
|
|
3,231.3
|
Noncontrolling
Interests
|
55.0
|
|
63.5
|
Total Stockholders'
Equity
|
3,529.7
|
|
3,294.8
|
Total
Liabilities and Stockholders' Equity
|
$
5,799.9
|
|
$
5,610.8
|
|
|
|
|
|
This information is
intended to be reviewed in conjunction with the company's filings
with the SEC.
|
Condensed
Consolidated Statements of Cash Flows (Unaudited)
|
|
For the Quarters
Ended Mar. 31, 2023, Dec. 31, 2022 and Mar. 31, 2022
|
|
|
|
|
|
|
(Dollars In
Millions)
|
|
|
|
|
|
|
Quarter
Ended
|
|
Mar.
|
|
Dec.
|
|
Mar.
|
|
2023
|
|
2022
|
|
2022
|
Cash Flows From
Operating Activities
|
|
|
|
|
|
Net Cash Provided By
(Used In) Continuing Operations
|
$
389.4
|
|
$
671.4
|
|
$
(272.5)
|
Net Cash Used in
Discontinued Operations
|
(3.1)
|
|
(1.9)
|
|
(1.2)
|
Net Cash Provided
By (Used In) Operating Activities
|
386.3
|
|
669.5
|
|
(273.7)
|
Cash Flows From
Investing Activities
|
|
|
|
|
|
Additions to Property,
Plant, Equipment and Mine Development
|
(55.7)
|
|
(117.0)
|
|
(29.7)
|
Changes in Accrued
Expenses Related to Capital Expenditures
|
(1.6)
|
|
5.6
|
|
(7.0)
|
Proceeds from Disposal
of Assets, Net of Receivables
|
2.9
|
|
10.0
|
|
3.6
|
Contributions to Joint
Ventures
|
(206.2)
|
|
(170.8)
|
|
(126.6)
|
Distributions from
Joint Ventures
|
202.0
|
|
166.4
|
|
148.2
|
Advances to Related
Parties
|
—
|
|
(0.2)
|
|
—
|
Cash Receipts from
Middlemount Coal Pty Ltd and Other Related Parties
|
—
|
|
16.9
|
|
47.2
|
Other, Net
|
0.1
|
|
(0.7)
|
|
(0.5)
|
Net Cash (Used In)
Provided By Investing Activities
|
(58.5)
|
|
(89.8)
|
|
35.2
|
Cash Flows From
Financing Activities
|
|
|
|
|
|
Proceeds from Long-Term
Debt
|
—
|
|
—
|
|
545.0
|
Repayments of Long-Term
Debt
|
(2.7)
|
|
(561.1)
|
|
(599.9)
|
Payment of Debt
Issuance and Other Deferred Financing Costs
|
(0.3)
|
|
—
|
|
(19.2)
|
Proceeds from Common
Stock Issuances, Net of Costs
|
—
|
|
—
|
|
222.0
|
Repurchase of Employee
Common Stock Relinquished for Tax Withholding
|
(13.2)
|
|
—
|
|
(2.0)
|
Distributions to
Noncontrolling Interests
|
(22.8)
|
|
—
|
|
(13.8)
|
Other, Net
|
—
|
|
—
|
|
0.1
|
Net Cash (Used In)
Provided By Financing Activities
|
(39.0)
|
|
(561.1)
|
|
132.2
|
Net Change in Cash,
Cash Equivalents and Restricted Cash
|
288.8
|
|
18.6
|
|
(106.3)
|
Cash, Cash
Equivalents and Restricted Cash at Beginning of
Period
|
1,417.6
|
|
1,399.0
|
|
954.3
|
Cash, Cash
Equivalents and Restricted Cash at End of Period
|
$
1,706.4
|
|
$
1,417.6
|
|
$
848.0
|
|
|
|
|
|
|
This information is
intended to be reviewed in conjunction with the company's filings
with the SEC.
|
Reconciliation of
Non-GAAP Financial Measures (Unaudited)
|
|
|
For the Quarters
Ended Mar. 31, 2023, Dec. 31, 2022 and Mar. 31, 2022
|
|
|
|
|
|
|
|
|
(Dollars In
Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: Management
believes that non-GAAP performance measures are used by investors
to measure our operating performance. These measures are not
intended to serve as alternatives to U.S. GAAP measures of
performance and may not be comparable to similarly-titled measures
presented by other companies.
|
|
|
|
|
|
Quarter
Ended
|
|
|
Mar.
|
|
Dec.
|
|
Mar.
|
|
|
2023
|
|
2022
|
|
2022
|
|
|
|
|
|
|
|
Income (Loss) from
Continuing Operations, Net of Income Taxes
|
$
284.1
|
|
$
641.5
|
|
$
(119.8)
|
Depreciation,
Depletion and Amortization
|
76.3
|
|
90.2
|
|
72.9
|
Asset Retirement
Obligation Expenses
|
15.4
|
|
8.6
|
|
15.0
|
Restructuring
Charges
|
0.1
|
|
0.1
|
|
1.6
|
Asset
Impairment
|
2.0
|
|
9.5
|
|
—
|
Changes in
Amortization of Basis Difference Related to Equity
Affiliates
|
(0.3)
|
|
(0.6)
|
|
(0.6)
|
Interest
Expense
|
18.4
|
|
29.5
|
|
39.4
|
Net Loss on Early Debt
Extinguishment
|
6.8
|
|
23.4
|
|
23.5
|
Interest
Income
|
(13.1)
|
|
(12.1)
|
|
(0.5)
|
Net Mark-to-Market
Adjustment on Actuarially Determined Liabilities
|
—
|
|
(27.8)
|
|
—
|
Unrealized (Gains)
Losses on Derivative Contracts Related to Forecasted
Sales
|
(118.7)
|
|
(199.3)
|
|
301.0
|
Unrealized Losses
(Gains) on Foreign Currency Option Contracts
|
2.2
|
|
(2.1)
|
|
(3.3)
|
Take-or-Pay
Contract-Based Intangible Recognition
|
(0.6)
|
|
(0.6)
|
|
(0.7)
|
Income Tax Provision
(Benefit)
|
118.0
|
|
(59.8)
|
|
(1.0)
|
Adjusted EBITDA
(1)
|
$
390.6
|
|
$
500.5
|
|
$
327.5
|
|
|
|
|
|
|
|
Operating Costs and
Expenses
|
$
846.6
|
|
$
927.8
|
|
$
699.0
|
Unrealized (Losses)
Gains on Foreign Currency Option Contracts
|
(2.2)
|
|
2.1
|
|
3.3
|
Take-or-Pay
Contract-Based Intangible Recognition
|
0.6
|
|
0.6
|
|
0.7
|
Net Periodic Benefit
Credit, Excluding Service Cost
|
(9.7)
|
|
(12.3)
|
|
(12.2)
|
Total Reporting Segment
Costs (2)
|
$
835.3
|
|
$
918.2
|
|
$
690.8
|
|
(1)
|
Adjusted EBITDA is
defined as income (loss) from continuing operations before
deducting net interest expense, income taxes, asset retirement
obligation expenses and depreciation, depletion and amortization.
Adjusted EBITDA is also adjusted for the discrete items that
management excluded in analyzing each of our segment's operating
performance, as displayed in the reconciliation above. Adjusted
EBITDA is used by management as the primary metric to measure each
of our segment's operating performance and allocate
resources.
|
(2)
|
Total Reporting Segment
Costs is defined as operating costs and expenses adjusted for the
discrete items that management excluded in analyzing each of our
segment's operating performance, as displayed in the reconciliation
above. Total Reporting Segment Costs is used by management as a
component of a metric to measure each of our segment's operating
performance.
|
|
This information is
intended to be reviewed in conjunction with the company's filings
with the SEC.
|
Supplemental
Financial Data (Unaudited)
|
|
|
For the Quarters
Ended Mar. 31, 2023, Dec. 31, 2022 and Mar. 31, 2022
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
|
Mar.
|
|
Dec.
|
|
Mar.
|
|
|
2023
|
|
2022
|
|
2022
|
Revenue Summary (In
Millions)
|
|
|
|
|
|
Seaborne Thermal Mining
Operations
|
$
346.5
|
|
$
386.3
|
|
$
251.2
|
Seaborne Metallurgical
Mining Operations
|
288.4
|
|
451.1
|
|
321.3
|
|
|
|
|
|
|
|
Powder River Basin
Mining Operations
|
305.3
|
|
294.1
|
|
251.2
|
Other U.S. Thermal
Mining Operations
|
249.4
|
|
262.8
|
|
203.1
|
Total U.S. Thermal
Mining Operations
|
554.7
|
|
556.9
|
|
454.3
|
Corporate and Other
(1)
|
174.4
|
|
231.8
|
|
(335.4)
|
Total
|
$
1,364.0
|
|
$
1,626.1
|
|
$
691.4
|
|
|
|
|
|
|
|
Total Reporting Segment
Costs Summary (In Millions) (2)
|
|
|
|
|
|
Seaborne Thermal Mining
Operations
|
$
182.5
|
|
$
177.2
|
|
$
160.7
|
Seaborne Metallurgical
Mining Operations
|
197.6
|
|
263.3
|
|
140.3
|
|
|
|
|
|
|
|
Powder River Basin
Mining Operations
|
269.5
|
|
269.4
|
|
243.6
|
Other U.S. Thermal
Mining Operations
|
185.2
|
|
205.0
|
|
153.1
|
Total U.S. Thermal
Mining Operations
|
454.7
|
|
474.4
|
|
396.7
|
Corporate and
Other
|
0.5
|
|
3.3
|
|
(6.9)
|
Total
|
$
835.3
|
|
$
918.2
|
|
$
690.8
|
|
|
|
|
|
|
|
Other Supplemental
Financial Data (In Millions)
|
|
|
|
|
|
Adjusted EBITDA -
Seaborne Thermal Mining Operations
|
$
164.0
|
|
$
209.1
|
|
$
90.5
|
Adjusted EBITDA -
Seaborne Metallurgical Mining Operations
|
90.8
|
|
187.8
|
|
181.0
|
|
|
|
|
|
|
|
Adjusted EBITDA -
Powder River Basin Mining Operations
|
35.8
|
|
24.7
|
|
7.6
|
Adjusted EBITDA - Other
U.S. Thermal Mining Operations
|
64.2
|
|
57.8
|
|
50.0
|
Adjusted EBITDA - Total
U.S. Thermal Mining Operations
|
100.0
|
|
82.5
|
|
57.6
|
Middlemount
(3)
|
2.3
|
|
10.9
|
|
45.1
|
Resource Management
Results (4)
|
2.3
|
|
6.8
|
|
3.5
|
Selling and
Administrative Expenses
|
(22.8)
|
|
(24.3)
|
|
(23.1)
|
Other Operating Costs,
Net (5)
|
54.0
|
|
27.7
|
|
(27.1)
|
Adjusted EBITDA
(2)
|
$
390.6
|
|
$
500.5
|
|
$
327.5
|
|
|
(1)
|
Includes net gains of
$118.7 million and $199.3 million and a net loss of $301.0 million
related to unrealized mark-to-market adjustments on derivatives
related to forecasted sales during the quarters ended March 31,
2023, December 31, 2022 and March 31, 2022,
respectively.
|
(2)
|
Total Reporting Segment
Costs and Adjusted EBITDA are non-GAAP financial measures. Refer to
the "Reconciliation of Non-GAAP Financial Measures" section in this
document for definitions and reconciliations to the most comparable
measures under U.S. GAAP.
|
(3)
|
We account for our 50%
equity interest in Middlemount Coal Pty Ltd. (Middlemount), which
owns the Middlemount Mine, under the equity method. Middlemount's
standalone results exclude the impact of related changes in
amortization of basis difference recorded by the company in
applying the equity method. Middlemount's standalone results
include (on a 50% attributable basis):
|
|
|
Quarter
Ended
|
|
|
Mar.
|
|
Dec.
|
|
Mar.
|
|
|
2023
|
|
2022
|
|
2022
|
|
|
(In
Millions)
|
|
Tons sold
|
0.3
|
|
0.4
|
|
0.5
|
|
Depreciation, depletion
and amortization and asset retirement obligation
expenses
|
$
1.6
|
|
$
1.7
|
|
$
2.1
|
|
Net interest
expense
|
—
|
|
(0.2)
|
|
0.1
|
|
Income tax
provision
|
1.0
|
|
4.8
|
|
18.0
|
(4)
|
Includes gains (losses)
on certain surplus coal reserve and surface land sales and property
management costs and revenue.
|
(5)
|
Includes trading and
brokerage activities, costs associated with post-mining activities,
minimum charges on certain transportation-related contracts,
costs associated with suspended operations including the North
Goonyella Mine and revenue of $19.2 million related to the Q1 2023
assignment of port and rail capacity.
|
|
|
|
|
|
|
|
This information is
intended to be reviewed in conjunction with the company's filings
with the SEC.
|
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the securities laws. Forward-looking statements can
be identified by the fact that they do not relate strictly to
historical or current facts. They often include words or variation
of words such as "expects," "anticipates," "intends," "plans,"
"believes," "seeks," "estimates," "projects," "forecasts,"
"targets," "would," "will," "should," "goal," "could" or "may" or
other similar expressions. Forward-looking statements provide
management's current expectations or predictions of future
conditions, events, or results. All statements that address
operating performance, events, or developments that may occur in
the future are forward-looking statements, including statements
regarding the shareholder return framework, execution of the
Company's operating plans, market conditions for the Company's
products, reclamation obligations, financial outlook, and liquidity
requirements. All forward-looking statements speak only as of the
date they are made and reflect Peabody's good faith beliefs,
assumptions, and expectations, but they are not guarantees of
future performance or events. Furthermore, Peabody disclaims any
obligation to publicly update or revise any forward-looking
statement, except as required by law. By their nature,
forward-looking statements are subject to risks and uncertainties
that could cause actual results to differ materially from those
suggested by the forward-looking statements. Factors that might
cause such differences include, but are not limited to, a variety
of economic, competitive, and regulatory factors, many of which are
beyond Peabody's control, that are described in Peabody's Annual
Report on Form 10-K for the fiscal year ended Dec. 31, 2022, and other factors that Peabody may
describe from time to time in other filings with the SEC. You may
get such filings for free at Peabody's website at
www.peabodyenergy.com. You should understand that it is not
possible to predict or identify all such factors and, consequently,
you should not consider any such list to be a complete set of all
potential risks or uncertainties.
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SOURCE Peabody