ST. LOUIS, Oct. 18, 2021 /PRNewswire/ -- Peabody (NYSE:
BTU) today announced preliminary unaudited financial results for
the third quarter 2021. The Company expects to report third
quarter revenue of $670 to
$690 million, net of $238 million of unrealized mark-to-market losses
related to forward pricing hedges; net loss from continuing
operations, net of income taxes of $55 to $75 million;
net loss attributable to common stockholders of $40 to $60 million;
and Adjusted EBITDA1 of $280 to $290
million. Peabody posted $193
million of cash margin in support of forward pricing
contracts ending the quarter with $587.0
million of cash and cash equivalents and has retired senior
secured debt of nearly $250 million
year-to-date as of October 15,
2021.
"The preliminary financial results we reported today continue to
demonstrate the disciplined approach we are taking to control
costs, expand margins and reduce debt. Coal sales to customers were
in excess of $900 million, the
highest level in seven quarters. We remain optimistic about
the future given strong coal pricing and global demand
fundamentals," said Peabody President and Chief Executive Officer
Jim Grech.
The increase in adjusted EBITDA compared to prior year of
$95.4 million is attributable to
higher realized prices from robust seaborne coal demand and a
$26 million mainly non-cash gain on
the sale of Millennium. In the third quarter, revenues and
net loss attributable to common stockholders was negatively
impacted by approximately $238 million of unrealized
mark-to-market losses primarily related to coal hedges contracted
in the first half of 2021 which effectively locked-in the sales
price on 2.1 million metric tons of expected production at the
company's Wambo Underground mine with settlements of 1.4 million
metric tons in 2022 and 0.7 million metric tons in 2023.
These hedge contracts were placed to support the profitability of
the mine by securing average prices of $84 per metric ton through mid-2023 as part of a
strategy to extend the expected life of the mine.
Third quarter cash flows were impacted by $193 million of cash margin requirements related
to the aforementioned mark-to-market losses and $47 million cash used to retire $63 million of debt, partially offset by
additional ATM equity sale proceeds of $112
million (9 million shares issued). During the quarter,
the company completed additional debt-for-equity exchanges by
issuing 2.2 million shares of common stock in exchange for
$30 million of senior secured
debt. Subsequent to September 30,
2021, an additional $30
million of debt was retired, resulting in total senior
secured debt retirements year-to-date of approximately $250 million.
Peabody expects to report full financial results for the quarter
ended September 30, 2021 on
October 28, 2021.
The preliminary financial results set forth in this release are
based on the information available to us at this time. Our actual
results may vary from the estimated preliminary results presented
here due to the completion of our financial closing procedures,
final adjustments and other developments that may arise between now
and the time the financial results for the quarter ended
September 30, 2021 are finalized. The
estimated preliminary financial results have not been audited or
reviewed by our independent registered public accounting firm.
These estimates should not be viewed as a substitute for our full
interim financial statements. Accordingly, you should not place
undue reliance on this preliminary data.
Peabody (NYSE: BTU) is a leading coal producer, providing
essential products to fuel baseload electricity for emerging and
developed countries and create the steel needed to build
foundational infrastructure. Our commitment to sustainability
underpins our activities today and helps to shape our strategy for
the future. For further information, visit
PeabodyEnergy.com.
Contact:
Alice
Tharenos
314.342.7890
1 Adjusted EBITDA is a non-GAAP
financial measure. Adjusted EBITDA margin is equal to segment
Adjusted EBITDA divided by segment revenues. Please refer to
the tables and related notes in this press release for a
reconciliation and definition of non-GAAP financial
measures.
|
Reconciliation of
Non-GAAP Financial Measures (Unaudited)
|
For the Quarters
Ended Sept. 30, 2021 and 2020
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(Dollars In
Millions)
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Note:
Management believes that non-GAAP performance measures are used by
investors to measure our operating performance and lenders to
measure our ability to incur and service debt. 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.
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Preliminary
Estimate
|
|
|
|
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Quarter Ended
Sept. 2021
|
|
Quarter
Ended
Sept.
2020
|
|
|
Low
|
|
High
|
|
Actual
|
|
|
|
|
|
|
|
Loss from Continuing
Operations, Net of Income Taxes
|
$
|
(75.0)
|
|
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$
|
(55.0)
|
|
|
$
|
(64.8)
|
|
Depreciation,
Depletion and Amortization
|
75.0
|
|
|
80.0
|
|
|
72.2
|
|
Asset Retirement
Obligation Expenses
|
15.0
|
|
|
14.0
|
|
|
14.3
|
|
Restructuring
Charges
|
2.0
|
|
|
1.0
|
|
|
8.1
|
|
Transaction Costs
Related to Joint Ventures
|
—
|
|
|
—
|
|
|
6.0
|
|
Changes in Deferred
Tax Asset Valuation Allowance and Reserves and Amortization of
Basis Difference Related to Equity Affiliates
|
(8.0)
|
|
|
(6.0)
|
|
|
(0.5)
|
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Interest
Expense
|
46.0
|
|
|
45.0
|
|
|
34.9
|
|
Net Gain on Early Debt
Extinguishment
|
(16.0)
|
|
|
(17.0)
|
|
|
—
|
|
Interest
Income
|
(1.0)
|
|
|
(2.0)
|
|
|
(1.6)
|
|
Net Mark-to-Market
Adjustment on Actuarially Determined Liabilities
|
—
|
|
|
—
|
|
|
13.0
|
|
Unrealized Losses on
Economic Hedges
|
248.0
|
|
|
230.0
|
|
|
16.1
|
|
Unrealized Gains on
Non-Coal Trading Derivative Contracts
|
—
|
|
|
(1.0)
|
|
|
(0.7)
|
|
Take-or-Pay
Contract-Based Intangible Recognition
|
(1.0)
|
|
|
(1.0)
|
|
|
(1.5)
|
|
Income Tax (Benefit)
Provision
|
(5.0)
|
|
|
2.0
|
|
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(0.1)
|
|
Adjusted EBITDA
(1)
|
$
|
280.0
|
|
|
$
|
290.0
|
|
|
$
|
95.4
|
|
|
|
|
|
|
|
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(1)
|
Adjusted EBITDA is
defined as 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.
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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 Peabody expects
will occur in the future are forward-looking statements. They may
include estimates of sales and other operating performance targets,
cost savings, capital expenditures, other expense items, actions
relating to strategic initiatives, demand for the company's
products, liquidity, capital structure, market share, industry
volume, other financial items, descriptions of management's plans
or objectives for future operations and descriptions of assumptions
underlying any of the above. 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, including the ongoing impact of the
COVID-19 pandemic and factors that are described in Peabody's
Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2020, 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