HOUSTON--(BUSINESS WIRE)--Natural Resource Partners L.P. (NYSE:NRP) today reported third quarter 2017 net income of $26.1 million and net income attributable to the common unitholders and general partner of $18.4 million, which equated to $1.48 and $1.07 basic and diluted net income per common unit, respectively. NRP also generated Adjusted EBITDA of $58.1 million.
Craig Nunez, President and Chief Operating Officer, commented: "I am pleased with our recent performance. We continue to generate substantial amounts of cash from operations and our third quarter results have considerably improved compared to prior year levels. In addition, we continue to strengthen our balance sheet and have reduced debt $294.4 million during 2017. Compared to the prior quarter, our results were reflective of the steady performances from our Coal Royalty, Soda Ash and Construction Aggregates segments."
At the end of the third quarter, NRP had $121.2 million in cash and $111.0 million of borrowing capacity available under its credit facility. Subsequent to the end of the quarter, NRP redeemed the remaining $94.4 million of its outstanding 9.125% Senior Notes due 2018 at par and repaid $17.0 million on its credit facility. NRP's consolidated Debt-to-Adjusted EBITDA ratio now stands at 3.8x, down from 4.5x at year-end 2016 and 5.3x at year-end 2015.
NRP continues to focus on reducing its debt while maintaining sufficient liquidity to operate its businesses. NRP's goal is to achieve a leverage ratio, defined as Debt-to-EBITDA, of less than 3.0x, while maintaining minimum liquidity of $100 million, which may consist of a combination of cash and/or available borrowing capacity.
With respect to the third quarter of 2017, NRP’s Board of Directors declared a cash distribution of $0.45 per common unit and declared a distribution on NRP’s 12.0% Class A Convertible Preferred Units, one-half of which will be paid-in-kind through the issuance of additional preferred units.
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| (1) | See "Non-GAAP Financial Measures" and reconciliation tables at the end of this release. | ||
Segment Information
Coal Royalty and Other
Operating income for the quarter was $38.0 million and Adjusted EBITDA was $43.3 million. For the quarter, net cash provided by operating, investing and financing activities were $44.1 million, $0.7 million and $0.5 million, respectively, and DCF was $44.8 million. NRP's Q3 2017 results represent a substantial improvement from Q3 of 2016 and are essentially flat compared to Q2 of 2017. Adjusted Coal Royalty and Other Operating Income compared to Q3 of 2016 increased 26% and excluding the impact of asset sales, DCF increased 26% and Adjusted EBITDA increased 6%. Further discussion of the key drivers for each major producing region follows:
- Appalachia: Coal royalty revenue increased $6.6 million in this region primarily as a result of increased metallurgical coal prices and production in the third quarter of 2017 as compared to the third quarter of 2016.
- Illinois Basin: Lower production in this region led to a $5.3 million decrease in coal royalty revenue, despite the increase in thermal coal prices and our royalty revenue per ton in the region. The decreased production in this region was primarily a result of the temporary relocation of certain production off of NRP's coal reserves. However, this decrease in coal royalty revenue was partially offset by a $2.4 million increase in overriding royalty revenue in this region.
- Northern Powder River Basin: Lower production in this region led to the $1.4 million decrease in coal royalty revenue, despite the modest increase in prices. The lower production was a result of decreased mining on our acreage in this region, which has a checkerboard coal reserve ownership pattern.
Soda Ash
During the third quarter of 2017, international prices for soda ash, particularly in Asia, continued to be strong, and domestic prices have improved slightly over last year. NRP received $12.3 million of cash distributions from its 49% investment in Ciner Wyoming during the period, which was unchanged from the previous quarter and from Q3 of 2016. NRP's equity in earnings from Ciner Wyoming of $9.0 million declined 16% in Q3 2017, compared to the prior year period due to temporary production issues. However, NRP's earnings from Ciner Wyoming increased 7% compared to the previous quarter as a result of the progress made to improve production efficiency at the facility.
Construction Aggregates
Operating income for the quarter was $3.3 million and Adjusted EBITDA was $6.4 million. For the quarter, net cash provided by (used in) operating and investing activities were $2.2 million and $(1.2) million, respectively, and DCF was $1.3 million. While operating performance was in line with the previous quarter, performance improved compared to Q3 2016 as a result of increased production and sales volumes, higher margins on road construction and asphalt paving projects and increased marine terminal activity. DCF was lower in Q3 2017 due to temporary timing differences in cash receipts and payments that we expect to reverse during the remainder of the year.
Corporate and Finance
Total costs in Q3 2017 were $23.8 million, which includes $20.0 million of interest expense. While these amounts were in line with the previous quarter, total corporate and financing costs decreased 14% compared to the same period last year due to lower interest expense and lower legal and consulting fees compared to amounts incurred in Q3 of 2016 in connection with NRP's recapitalization transactions.
Conference Call
A conference call will be held today at 10:00 a.m. ET. To join the conference call, dial (844) 379-6938 and provide the conference code 55454886. Investors may also listen to the call via the Investor Relations section of the NRP website at www.nrplp.com.
Audio replays of the conference call will be available for approximately one week. To access the replay, dial (855) 859-2056 and provide the conference code 55454886 or visit the Investor Relations section of NRP’s website.
Company Profile
Natural Resource Partners L.P., a master limited partnership headquartered in Houston, TX, is a diversified natural resource company that owns interests in 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 a construction aggregates company and an equity investment in Ciner Wyoming, a trona/soda ash operation.
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.
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, including statements regarding future cash distributions to our common unitholders. These statements are based on certain assumptions made by the partnership based on its experience and perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the partnership. These risks include, but are not limited to, commodity prices; decreases in demand for coal, aggregates and industrial minerals, including trona/soda ash; changes in operating conditions and costs; production cuts by our lessees; unanticipated geologic problems; our liquidity, leverage and access to capital and financing sources; changes in the legislative or regulatory environment, and other factors detailed in Natural Resource Partners’ Securities and Exchange Commission filings. Natural Resource Partners L.P. has no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
Non-GAAP Financial Measures
"Adjusted EBITDA" is a non-GAAP financial measure that we define as net income (loss) from continuing operations less equity earnings from unconsolidated investment and income to non-controlling interest; plus distributions from unconsolidated investment, interest expense, debt modification expense, loss on extinguishment of debt, depreciation, depletion and amortization and asset impairments. Adjusted EBITDA should not be considered an alternative to, or more meaningful than, net income or loss, net income or loss attributable to partners, operating income, cash flows from operating activities or any other measure of financial performance presented in accordance with GAAP as measures of operating performance, liquidity or ability to service debt obligations. There are significant limitations to using Adjusted EBITDA as a measure of performance, including the inability to analyze the effect of certain recurring items that materially affect our net income (loss), the lack of comparability of results of operations of different companies and the different methods of calculating Adjusted EBITDA reported by different companies. In addition, Adjusted EBITDA presented below is not calculated or presented on the same basis as Consolidated EBITDA as defined in our partnership agreement. Adjusted EBITDA is a supplemental performance measure used by our management and by external users of our financial statements, such as investors, commercial banks, research analysts and others to assess the financial performance of our assets without regard to financing methods, capital structure or historical cost basis.
“Distributable Cash Flow” is a non-GAAP financial measure that we define as net cash provided by (used in) operating activities of continuing operations, plus returns of equity from unconsolidated investment, proceeds from sales of assets, including those included in discontinued operations, and return on long-term contract receivables (including affiliate); less maintenance capital expenditures and distributions to non-controlling interest. DCF 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. DCF may not be calculated the same for us as for other companies. DCF is a supplemental liquidity measure used by our management and by external users of our financial statements, such as investors, commercial banks, research analysts and others to assess the Partnership's ability to make cash distributions to our common and preferred unitholders and our general partner and repay debt.
“Adjusted Net Income” is a non-GAAP financial measure that we define as Net income attributable to common unitholders and general partner, plus asset impairments, loss from discontinued operations and write-off of bad debt expense; less gain on sale of assets and non-cash revenue from lease modifications. Adjusted net income should not be considered in isolation or as a substitute for operating income (loss), net income (loss), cash flows provided by operating, investing and financial activities, or other income or cash flow statement data prepared in accordance with GAAP. Our management team believes Adjusted net income is useful in evaluating our financial performance because restructuring transaction expenses are one time charges, gains on asset sales are not related to the operations of our business and asset impairments and fair value adjustments for warrant liabilities are non-cash charges and excluding these from net income allows us to better compare results period-over-period. Reconciliations of Net income attributable to common unitholders and general partner to Adjusted net income are included in the table on the first page of this release.
“Adjusted Coal Royalty and Other Operating Income” is a non-GAAP financial measure that we define as Coal royalty and other operating income plus asset impairments and write-off of bad debt expense; less gains on asset sales and non-cash revenue associated with lease modifications and terminations. Adjusted coal royalty and other operating income should not be considered in isolation or as a substitute for operating income (loss), net income (loss), cash flows provided by operating, investing and financial activities, or other income or cash flow statement data prepared in accordance with GAAP. Our management team believes Adjusted coal royalty and other operating income is useful in evaluating our financial performance because gains on asset sales are not related to the operations of our business and asset impairments and non-cash revenue associated with lease modifications and forfeitures are non-cash charges and excluding these from Coal royalty and other operating income allows us to better compare results period-over-period. Reconciliations of Coal royalty and other operating income to Adjusted coal royalty and other operating income are included in the tables attached to this release.
-Financial Tables, Reconciliation of Non-GAAP Measures and Recap of Metrics Follow-
| Natural Resource Partners L.P. | |||||||||||||||||||||||||
| Financial Tables | |||||||||||||||||||||||||
| Consolidated Statements of Comprehensive Income | |||||||||||||||||||||||||
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| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||
| September 30, | June 30, | September 30, | |||||||||||||||||||||||
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(In thousands, except per unit data) |
2017 | 2016 | 2017 | 2017 | 2016 | ||||||||||||||||||||
| Revenues and other income: | |||||||||||||||||||||||||
| Coal royalty and other | $ | 49,078 | $ | 27,504 | $ | 36,914 | $ | 120,986 | $ | 116,336 | |||||||||||||||
| Coal royalty and other—affiliates | 335 | 21,434 | 12,712 | 29,191 | 49,508 | ||||||||||||||||||||
| Construction aggregates | 34,710 | 31,757 | 33,555 | 95,486 | 88,081 | ||||||||||||||||||||
| Equity in earnings of Ciner Wyoming | 8,993 | 10,753 | 8,389 | 27,676 | 30,742 | ||||||||||||||||||||
| Gain (loss) on asset sales, net | 171 | 6,426 | 3,361 | 3,576 | 27,280 | ||||||||||||||||||||
| Total revenues and other income | $ | 93,287 | $ | 97,874 | $ | 94,931 | $ | 276,915 | $ | 311,947 | |||||||||||||||
| Operating expenses: | |||||||||||||||||||||||||
| Operating and maintenance expenses | $ | 32,441 | $ | 31,242 | $ | 31,020 | $ | 93,089 | $ | 87,824 | |||||||||||||||
| Operating and maintenance expenses—affiliates, net | 2,154 | 4,062 | 2,219 | 6,928 | 9,948 | ||||||||||||||||||||
| Depreciation, depletion and amortization | 8,306 | 11,929 | 8,165 | 26,195 | 32,181 | ||||||||||||||||||||
| Amortization expense—affiliate | — | 902 | 240 | 1,008 | 2,328 | ||||||||||||||||||||
| General and administrative | 2,648 | 4,268 | 2,031 | 10,757 | 10,676 | ||||||||||||||||||||
| General and administrative—affiliates | 1,207 | 867 | 852 | 3,183 | 2,670 | ||||||||||||||||||||
| Asset impairments | — | 5,697 | — | 1,778 | 7,681 | ||||||||||||||||||||
| Total operating expenses | $ | 46,756 | $ | 58,967 | $ | 44,527 | $ | 142,938 | $ | 153,308 | |||||||||||||||
| Income from operations | $ | 46,531 | $ | 38,907 | $ | 50,404 | $ | 133,977 | $ | 158,639 | |||||||||||||||
| Other income (expense) | |||||||||||||||||||||||||
| Interest expense | $ | (20,080 | ) | $ | (22,491 | ) | $ | (20,377 | ) | $ | (63,598 | ) | $ | (66,742 | ) | ||||||||||
| Interest expense—affiliate | — | — | — | — | (523 | ) | |||||||||||||||||||
| Debt modification expense | — | — | (132 | ) | (7,939 | ) | — | ||||||||||||||||||
| Loss on extinguishment of debt | — | — | (4,107 | ) | (4,107 | ) | — | ||||||||||||||||||
| Interest income | 48 | 3 | 69 | 134 | 29 | ||||||||||||||||||||
| Other expense, net | $ | (20,032 | ) | $ | (22,488 | ) | $ | (24,547 | ) | $ | (75,510 | ) | $ | (67,236 | ) | ||||||||||
| Net income from continuing operations | $ | 26,499 | $ | 16,419 | $ | 25,857 | $ | 58,467 | $ | 91,403 | |||||||||||||||
| Income (loss) from discontinued operations | (433 | ) | 7,112 | 133 | (507 | ) | 2,001 | ||||||||||||||||||
| Net income | $ | 26,066 | $ | 23,531 | $ | 25,990 | $ | 57,960 | $ | 93,404 | |||||||||||||||
| Less: income attributable to preferred unitholders | (7,650 | ) | — | (7,538 | ) | (17,688 | ) | — | |||||||||||||||||
| Net income attributable to common unitholders and general partner | $ | 18,416 | $ | 23,531 | $ | 18,452 | $ | 40,272 | $ | 93,404 | |||||||||||||||
| Income from continuing operations per common unit | |||||||||||||||||||||||||
| Basic | $ | 1.51 | $ | 1.32 | $ | 1.46 | $ | 3.27 | $ | 7.34 | |||||||||||||||
| Diluted | $ | 1.08 | $ | 1.32 | $ | 1.13 | $ | 2.67 | $ | 7.34 | |||||||||||||||
| Net income per common unit | |||||||||||||||||||||||||
| Basic | $ | 1.48 | $ | 1.89 | $ | 1.47 | $ | 3.23 | $ | 7.50 | |||||||||||||||
| Diluted | $ | 1.07 | $ | 1.89 | $ | 1.13 | $ | 2.65 | $ | 7.50 | |||||||||||||||
| Net income | $ | 26,066 | $ | 23,531 | $ | 25,990 | $ | 57,960 | $ | 93,404 | |||||||||||||||
| Add: comprehensive loss from unconsolidated investment and other | (268 | ) | (609 | ) | (13 | ) | (1,413 | ) | (692 | ) | |||||||||||||||
| Comprehensive income | $ | 25,798 | $ | 22,922 | $ | 25,977 | $ | 56,547 | $ | 92,712 | |||||||||||||||
| Natural Resource Partners L.P. | |||||||||||||||||||||||||
| Financial Tables | |||||||||||||||||||||||||
| Consolidated Statements of Cash Flows | |||||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||
| September 30, | June 30, | September 30, | |||||||||||||||||||||||
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(In thousands) |
2017 | 2016 | 2017 | 2017 | 2016 | ||||||||||||||||||||
| Cash flows from operating activities: | |||||||||||||||||||||||||
| Net income | $ | 26,066 | $ | 23,531 | $ | 25,990 | $ | 57,960 | $ | 93,404 | |||||||||||||||
| Adjustments to reconcile net income to net cash provided by operating activities of continuing operations: | |||||||||||||||||||||||||
| Depreciation, depletion and amortization | 8,306 | 11,929 | 8,165 | 26,195 | 32,181 | ||||||||||||||||||||
| Amortization expense—affiliates | — | 902 | 240 | 1,008 | 2,328 | ||||||||||||||||||||
| Return on earnings from unconsolidated investment | 8,993 | 12,250 | 9,862 | 31,104 | 34,300 | ||||||||||||||||||||
| Equity earnings from unconsolidated investment | (8,993 | ) | (10,753 | ) | (8,389 | ) | (27,676 | ) | (30,742 | ) | |||||||||||||||
| (Gain) loss on asset sales, net | (171 | ) | (6,426 | ) | (3,361 | ) | (3,576 | ) | (27,280 | ) | |||||||||||||||
| Debt modification expense | — | — | 132 | 7,939 | — | ||||||||||||||||||||
| Loss on extinguishment of debt | — | — | 4,107 | 4,107 | — | ||||||||||||||||||||
| (Income) loss from discontinued operations | 433 | (7,112 | ) | (133 | ) | 507 | (2,001 | ) | |||||||||||||||||
| Asset impairments | — | 5,697 | — | 1,778 | 7,681 | ||||||||||||||||||||
| Amortization of debt issuance costs and other | 3,037 | 2,600 | 1,332 | 5,459 | 6,694 | ||||||||||||||||||||
| Other, net—affiliates | 200 | 636 | (999 | ) | 88 | 848 | |||||||||||||||||||
| Change in operating assets and liabilities: | |||||||||||||||||||||||||
| Accounts receivable | 5,210 | (4,263 | ) | (2,336 | ) | 1,607 | (341 | ) | |||||||||||||||||
| Accounts receivable—affiliates | 49 | 1,559 | 121 | (777 | ) | (712 | ) | ||||||||||||||||||
| Accounts payable | 684 | 485 | (940 | ) | 730 | 635 | |||||||||||||||||||
| Accounts payable—affiliates | (272 | ) | 54 | (254 | ) | (270 | ) | 29 | |||||||||||||||||
| Accrued liabilities | (8,554 | ) | 10,418 | 4,182 | (12,452 | ) | 7,287 | ||||||||||||||||||
| Accrued liabilities—affiliates | — | — | — | — | (456 | ) | |||||||||||||||||||
| Deferred revenue | (4,494 | ) | (2,558 | ) | 3,412 | (5 | ) | (40,762 | ) | ||||||||||||||||
| Deferred revenue—affiliates | — | (4,130 | ) | (7,269 | ) | (10,166 | ) | (8,190 | ) | ||||||||||||||||
| Other items, net | (4,694 | ) | 1,689 | 1,243 | (2,166 | ) | (356 | ) | |||||||||||||||||
| Other items, net—affiliates | — | (607 | ) | — | — | — | |||||||||||||||||||
| Net cash provided by operating activities of continuing operations | $ | 25,800 | $ | 35,901 | $ | 35,105 | $ | 81,394 | $ | 74,547 | |||||||||||||||
| Net cash provided by (used in) operating activities of discontinued operations | (76 | ) | 2,358 | (247 | ) | (607 | ) | 8,173 | |||||||||||||||||
| Net cash provided by operating activities | $ | 25,724 | $ | 38,259 | $ | 34,858 | $ | 80,787 | $ | 82,720 | |||||||||||||||
| Cash flows from investing activities: | |||||||||||||||||||||||||
| Return of equity from unconsolidated investment | $ | 3,258 | $ | — | $ | 2,388 | $ | 5,646 | $ | — | |||||||||||||||
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Proceeds from sale of assets |
151 | 10,372 | 1,655 | 1,419 | 55,364 | ||||||||||||||||||||
| Return of long-term contract receivables | 600 | — | 1,207 | 1,807 | — | ||||||||||||||||||||
| Return of long-term contract receivables—affiliate | — | 397 | 390 | 804 | 2,577 | ||||||||||||||||||||
| Acquisition of plant and equipment and other | (1,238 | ) | (512 | ) | (2,903 | ) | (6,236 | ) | (4,431 | ) | |||||||||||||||
| Net cash provided by investing activities of continuing operations | $ | 2,771 | $ | 10,257 | $ | 2,737 | $ | 3,440 | $ | 53,510 | |||||||||||||||
| Net cash provided by investing activities of discontinued operations | 4 | 110,635 | 173 | 206 | 106,821 | ||||||||||||||||||||
| Net cash provided by investing activities | $ | 2,775 | $ | 120,892 | $ | 2,910 | $ | 3,646 | $ | 160,331 | |||||||||||||||
| Cash flows from financing activities: | |||||||||||||||||||||||||
| Proceeds from issuance of Convertible Preferred Units and Warrants, net | $ | — | $ | — | $ | — | $ | 242,100 | $ | — | |||||||||||||||
| Proceeds from issuance of 2022 Senior Notes, net | — | — | — | 103,688 | — | ||||||||||||||||||||
| Proceeds from loans | 69,000 | — | — | 69,000 | 20,000 | ||||||||||||||||||||
| Repayments of loans | (8,000 | ) | (7,692 | ) | (97,282 | ) | (356,292 | ) | (106,174 | ) | |||||||||||||||
| Distributions to common unitholders and general partner | (5,616 | ) | (5,617 | ) | (5,619 | ) | (16,850 | ) | (16,849 | ) | |||||||||||||||
| Distributions to preferred unitholders | (3,769 | ) | — | (1,250 | ) | (5,019 | ) | — | |||||||||||||||||
| Proceeds from (contributions to) discontinued operations | (72 | ) | 40,226 | (74 | ) | (401 | ) | 40,226 | |||||||||||||||||
| Debt issue costs and other | 347 | (2,074 | ) | (5,779 | ) | (40,187 | ) | (14,072 | ) | ||||||||||||||||
| Net cash provided by (used in) financing activities of continuing operations |
$ |
51,890 |
$ |
24,843 |
$ |
(110,004 |
) |
$ |
(3,961 |
) |
$ |
(76,869 |
) | ||||||||||||
| Net cash provided by (used in) financing activities of discontinued operations | 72 | (114,994 | ) | 74 | 401 | (125,564 | ) | ||||||||||||||||||
| Net cash provided by (used in) financing activities | $ | 51,962 | $ | (90,151 | ) | $ | (109,930 | ) | $ | (3,560 | ) | $ | (202,433 | ) | |||||||||||
| Net increase (decrease) in cash and cash equivalents | $ | 80,461 | $ | 69,000 | $ | (72,162 | ) | $ | 80,873 | $ | 40,618 | ||||||||||||||
| Cash and cash equivalents of continuing operations at beginning of period | $ | 40,783 | $ | 21,391 | $ | 112,945 | $ | 40,371 | $ | 41,204 | |||||||||||||||
| Cash and cash equivalents of discontinued operations at beginning of period | — | 2,000 | — | — | 10,569 | ||||||||||||||||||||
| Cash and cash equivalents at beginning of period | $ | 40,783 | $ | 23,391 | $ | 112,945 | $ | 40,371 | $ | 51,773 | |||||||||||||||
| Cash and cash equivalents at end of period | $ | 121,244 | $ | 92,391 | $ | 40,783 | $ | 121,244 | $ | 92,391 | |||||||||||||||
| Less: cash and cash equivalents of discontinued operations at end of period | — | — | — | — | — | ||||||||||||||||||||
| Cash and cash equivalents of continuing operations at end of period | $ | 121,244 | $ | 92,391 | $ | 40,783 | $ | 121,244 | $ | 92,391 | |||||||||||||||
| Supplemental cash flow information: | |||||||||||||||||||||||||
| Cash paid during the period for interest from continuing operations | $ | 26,977 | $ | 12,078 | $ | 15,029 | $ | 61,857 | $ | 54,749 | |||||||||||||||
| Cash paid during the period for interest from discontinued operations | $ | — | $ | — | $ | — | $ | — | $ | 1,906 | |||||||||||||||
| Non-cash financing activities: | |||||||||||||||||||||||||
| Issuance of 2022 Senior Notes in exchange for 2018 Senior Notes | $ | — | $ | — | $ | — | $ | 240,638 | $ | — | |||||||||||||||
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Natural Resource Partners L.P. |
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Financial Tables |
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| Consolidated Balance Sheets | ||||||||||
| (Unaudited) | ||||||||||
| September 30, | December 31, | |||||||||
|
(In thousands, except unit data) |
2017 | 2016 | ||||||||
| ASSETS | ||||||||||
| Current assets: | ||||||||||
| Cash and cash equivalents | $ | 121,244 | $ | 40,371 | ||||||
| Accounts receivable, net | 48,788 | 43,202 | ||||||||
| Accounts receivable—affiliates, net | 243 | 6,658 | ||||||||
| Inventory | 7,671 | 6,893 | ||||||||
| Prepaid expenses and other | 7,525 | 7,271 | ||||||||
| Current assets of discontinued operations | 991 | 991 | ||||||||
| Total current assets | $ | 186,462 | $ | 105,386 | ||||||
| Land | 25,261 | 25,252 | ||||||||
| Plant and equipment, net | 47,584 | 49,443 | ||||||||
| Mineral rights, net | 890,610 | 908,192 | ||||||||
| Intangible assets, net | 50,370 | 3,236 | ||||||||
| Intangible assets, net—affiliate | — | 49,811 | ||||||||
| Equity in unconsolidated investment | 245,382 | 255,901 | ||||||||
| Long-term contracts receivable | 41,211 | — | ||||||||
| Long-term contracts receivable—affiliate | — | 43,785 | ||||||||
| Other assets | 7,741 | 6,625 | ||||||||
| Other assets—affiliate | 892 | 1,018 | ||||||||
| Total assets | $ | 1,495,513 | $ | 1,448,649 | ||||||
| LIABILITIES AND CAPITAL | ||||||||||
| Current liabilities: | ||||||||||
| Accounts payable | $ | 5,812 | $ | 6,234 | ||||||
| Accounts payable—affiliates | 670 | 940 | ||||||||
| Accrued liabilities | 28,659 | 41,587 | ||||||||
| Current portion of long-term debt, net | 174,138 | 140,037 | ||||||||
| Current liabilities of discontinued operations | 458 | 353 | ||||||||
| Total current liabilities | $ | 209,737 | $ | 189,151 | ||||||
| Deferred revenue | 106,391 | 44,931 | ||||||||
| Deferred revenue—affiliates | — | 71,632 | ||||||||
| Long-term debt, net | 762,441 | 990,234 | ||||||||
| Other non-current liabilities | 2,727 | 4,565 | ||||||||
| Total liabilities | $ | 1,081,296 | $ | 1,300,513 | ||||||
| Commitments and contingencies | ||||||||||
| Convertible Preferred Units (255,019 units issued and outstanding at $1,000 par value per unit; liquidation preference of $1,500 per unit) | $ | 169,606 | $ | — | ||||||
| Partners’ capital: | ||||||||||
| Common unitholders’ interest (12,232,006 units issued and outstanding) | $ | 182,760 | $ | 152,309 | ||||||
| General partner’s interest | 1,508 | 887 | ||||||||
| Warrant holders interest | 66,816 | — | ||||||||
| Accumulated other comprehensive loss | (3,079 | ) | (1,666 | ) | ||||||
| Total partners’ capital | $ | 248,005 | $ | 151,530 | ||||||
| Non-controlling interest | (3,394 | ) | (3,394 | ) | ||||||
| Total capital | 244,611 | 148,136 | ||||||||
| Total liabilities and capital | $ | 1,495,513 | $ | 1,448,649 | ||||||
Natural Resource Partners L.P.
Financial Tables
The table below presents NRP's unaudited business results by segment for the three months ended September 30, 2017 and 2016 and June 30, 2017, respectively:
| Operating Business Segments | |||||||||||||||||||||||||
|
Coal |
Construction |
Corporate |
|||||||||||||||||||||||
|
($ In thousands) |
Soda Ash | Total | |||||||||||||||||||||||
| Three Months Ended September 30, 2017 | |||||||||||||||||||||||||
| Revenues and other income | $ | 49,413 | $ | 8,993 | $ | 34,710 | $ | — | $ | 93,116 | |||||||||||||||
| Gains on asset sales | 154 | — | 17 | — | 171 | ||||||||||||||||||||
| Total revenues and other income | $ | 49,567 | $ | 8,993 | $ | 34,727 | $ | — | $ | 93,287 | |||||||||||||||
| Net income (loss) from continuing operations | $ | 37,992 | $ | 8,993 | $ | 3,342 | $ | (23,828 | ) | $ | 26,499 | ||||||||||||||
| Adjusted EBITDA (1) | $ | 43,297 | $ | 12,250 | $ | 6,402 | $ | (3,807 | ) | $ | 58,142 | ||||||||||||||
| Net cash provided by (used in) operating activities of continuing operations | $ | 44,119 | $ | 8,992 | $ | 2,155 | $ | (29,466 | ) | $ | 25,800 | ||||||||||||||
| Net cash provided by (used in) investing activities of continuing operations | $ | 676 | $ | 3,258 | $ | (1,163 | ) | $ | — | $ | 2,771 | ||||||||||||||
|
Net cash provided by financing activities of continuing operations |
$ | 484 | $ | — | $ | — | $ | 51,406 | $ | 51,890 | |||||||||||||||
| Distributable Cash Flow (1) | $ | 44,795 | $ | 12,250 | $ | 1,304 | $ | (29,466 | ) | $ | 28,883 | ||||||||||||||
| Three Months Ended September 30, 2016 | |||||||||||||||||||||||||
| Revenues and other income | $ | 48,938 | $ | 10,753 | $ | 31,757 | $ | — | $ | 91,448 | |||||||||||||||
|
Gain on asset sales |
6,425 | — | 1 | — | 6,426 | ||||||||||||||||||||
| Total revenues and other income | $ | 55,363 | $ | 10,753 | $ | 31,758 | $ | — | $ | 97,874 | |||||||||||||||
| Asset impairments | $ | 5,697 | $ | — | $ | — | $ | — | $ | 5,697 | |||||||||||||||
| Net income (loss) from continuing operations | $ | 32,250 | $ | 10,753 | $ | 1,039 | $ | (27,623 | ) | $ | 16,419 | ||||||||||||||
| Adjusted EBITDA (1) | $ | 47,017 | $ | 12,250 | $ | 4,800 | $ | (5,132 | ) | $ | 58,935 | ||||||||||||||
| Net cash provided by (used in) operating activities of continuing operations | $ | 34,997 | $ | 12,250 | $ | 4,357 | $ | (15,703 | ) | $ | 35,901 | ||||||||||||||
| Net cash provided by (used in) investing activities of continuing operations | $ | 10,691 | $ | — | $ | (434 | ) | $ | — | $ | 10,257 | ||||||||||||||
|
Net cash provided by financing activities of continuing operations |
$ | — | $ | — | $ | — | $ | 24,843 | $ | 24,843 | |||||||||||||||
| Distributable Cash Flow (1) | $ | 45,683 | $ | 12,250 | $ | 4,093 | $ | (15,703 | ) | $ | 156,212 | ||||||||||||||
| Three Months Ended June 30, 2017 | |||||||||||||||||||||||||
| Revenues and other income | $ | 49,626 | $ | 8,389 | $ | 33,555 | $ | — | $ | 91,570 | |||||||||||||||
| Gains on asset sales | 3,184 | — | 177 | — | 3,361 | ||||||||||||||||||||
| Total revenues and other income | $ | 52,810 | $ | 8,389 | $ | 33,732 | $ | — | $ | 94,931 | |||||||||||||||
| Net income (loss) from continuing operations | $ | 42,084 | $ | 8,389 | $ | 2,636 | $ | (27,252 | ) | $ | 25,857 | ||||||||||||||
| Adjusted EBITDA (1) | $ | 47,459 | $ | 12,250 | $ | 5,844 | $ | (2,814 | ) | $ | 62,739 | ||||||||||||||
| Net cash provided by (used in) operating activities of continuing operations | $ | 38,537 | $ | 9,862 | $ | 5,476 | $ | (18,770 | ) | $ | 35,105 | ||||||||||||||
| Net cash provided by (used in) investing activities of continuing operations | $ | 2,888 | $ | 2,388 | $ | (2,539 | ) | $ | — | $ | 2,737 | ||||||||||||||
| Net cash provided by (used in) financing activities of continuing operations | $ | 17 | $ | — | $ | (1,000 | ) | $ | (109,021 | ) | $ | (110,004 | ) | ||||||||||||
| Distributable Cash Flow (1) | $ | 41,426 | $ | 12,250 | $ | 3,424 | $ | (18,770 | ) | $ | 38,330 | ||||||||||||||
Natural Resource Partners L.P.
Financial Tables
The table below presents NRP's unaudited business results by segment for the nine months ended September 30, 2017 and 2016:
| Operating Business Segments | |||||||||||||||||||||||||
|
Coal |
Construction |
Corporate |
|||||||||||||||||||||||
|
(In thousands) |
Soda Ash | Total | |||||||||||||||||||||||
| Nine Months Ended September 30, 2017 | |||||||||||||||||||||||||
| Revenues and other income | $ | 150,177 | $ | 27,676 | $ | 95,486 | $ | — | $ | 273,339 | |||||||||||||||
| Gains on asset sales | 3,367 | — | 209 | — | 3,576 | ||||||||||||||||||||
| Total revenues and other income | $ | 153,544 | $ | 27,676 | $ | 95,695 | $ | — | $ | 276,915 | |||||||||||||||
| Asset impairments | $ | 1,778 | $ | — | $ | — | $ | — | $ | 1,778 | |||||||||||||||
| Net income (loss) from continuing operations | $ | 115,170 | $ | 27,676 | $ | 4,439 | $ | (88,818 | ) | $ | 58,467 | ||||||||||||||
| Adjusted EBITDA (1) | $ | 134,601 | $ | 36,750 | $ | 14,621 | $ | (13,806 | ) | $ | 172,166 | ||||||||||||||
| Net cash provided by (used in) operating activities of continuing operations | $ | 120,588 | $ | 31,104 | $ | 11,677 | $ | (81,975 | ) | $ | 81,394 | ||||||||||||||
| Net cash provided by (used in) investing activities of continuing operations | $ | 3,570 | $ | 5,646 | $ | (5,776 | ) | $ | — | $ | 3,440 | ||||||||||||||
| Net cash provided by (used in) financing activities of continuing operations | $ | 517 | $ | — | $ | (1,096 | ) | $ | (3,382 | ) | $ | (3,961 | ) | ||||||||||||
| Distributable Cash Flow (1) | $ | 124,158 | $ | 36,750 | $ | 6,827 | $ | (81,975 | ) | $ | 85,760 | ||||||||||||||
| Nine Months Ended September 30, 2016 | |||||||||||||||||||||||||
| Revenues and other income | $ | 165,844 | $ | 30,742 | $ | 88,081 | $ | — | $ | 284,667 | |||||||||||||||
| Gains on asset sales | 27,270 | — | 10 | — | 27,280 | ||||||||||||||||||||
| Total revenues and other income | $ | 193,114 | $ | 30,742 | $ | 88,091 | $ | — | $ | 311,947 | |||||||||||||||
| Asset impairments | $ | 7,681 | $ | — | $ | — | $ | — | $ | 7,681 | |||||||||||||||
| Net income (loss) from continuing operations | $ | 137,802 | $ | 30,742 | $ | 3,441 | $ | (80,582 | ) | $ | 91,403 | ||||||||||||||
| Adjusted EBITDA (1) | $ | 168,979 | $ | 34,300 | $ | 14,454 | $ | (13,317 | ) | $ | 204,416 | ||||||||||||||
| Net cash provided by (used in) operating activities of continuing operations | $ | 91,372 | $ | 34,300 | $ | 16,680 | $ | (67,805 | ) | $ | 74,547 | ||||||||||||||
| Net cash provided by (used in) investing activities of continuing operations | $ | 57,834 | $ | — | $ | (4,324 | ) | $ | — | $ | 53,510 | ||||||||||||||
| Net cash used in financing activities of continuing operations | $ | — | $ | (7,229 | ) | $ | (1,593 | ) | $ | (68,047 | ) | $ | (76,869 | ) | |||||||||||
| Distributable Cash Flow (1) | $ | 149,206 | $ | 34,300 | $ | 13,111 | $ | (67,805 | ) | $ | 238,701 | ||||||||||||||
|
____________________ |
|
| (1) | See "Non-GAAP Financial Measures" and reconciliation tables at the end of this release. |
| Natural Resource Partners L.P. | ||||||||||||||||||||||||
| Financial Tables | ||||||||||||||||||||||||
| Operating Statistics - Coal Royalty and Other (Unaudited) | ||||||||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||
| September 30, | June 30, | September 30, | ||||||||||||||||||||||
|
($ in thousands, except tons and per tons amounts) |
2017 | 2016 | 2017 | 2017 | 2016 | |||||||||||||||||||
| Coal production (tons) | ||||||||||||||||||||||||
| Appalachia | ||||||||||||||||||||||||
| Northern (1) | 226 | (356 | ) | 247 | 1,672 | 479 | ||||||||||||||||||
| Central | 3,596 | 3,348 | 3,897 | 11,193 | 10,046 | |||||||||||||||||||
| Southern | 468 | 683 | 690 | 1,721 | 2,201 | |||||||||||||||||||
| Total Appalachia | 4,290 | 3,675 | 4,834 | 14,586 | 12,726 | |||||||||||||||||||
| Illinois Basin | 794 | 2,411 | 734 | 3,545 | 6,056 | |||||||||||||||||||
| Northern Powder River Basin | 849 | 1,318 | 910 | 2,708 | 2,734 | |||||||||||||||||||
| Total coal production | 5,933 | 7,404 | 6,478 | 20,839 | 21,516 | |||||||||||||||||||
| Coal royalty revenue per ton | ||||||||||||||||||||||||
| Appalachia | ||||||||||||||||||||||||
| Northern (1) | $ | 3.26 | $ | 1.98 | $ | 3.78 | $ | 1.36 | $ | 4.19 | ||||||||||||||
| Central | $ | 4.77 | $ | 3.28 | $ | 5.05 | $ | 5.09 | $ | 3.22 | ||||||||||||||
| Southern | $ | 5.73 | $ | 3.83 | $ | 5.69 | $ | 5.95 | $ | 3.37 | ||||||||||||||
| Illinois Basin | $ | 4.32 | $ | 3.63 | $ | 4.06 | $ | 3.68 | $ | 3.57 | ||||||||||||||
| Northern Powder River Basin | $ | 3.47 | $ | 3.27 | $ | 2.62 | $ | 2.89 | $ | 3.04 | ||||||||||||||
| Coal royalty revenues | ||||||||||||||||||||||||
| Appalachia | ||||||||||||||||||||||||
| Northern (1) | $ | 737 | $ | 370 | $ | 933 | $ | 2,279 | $ | 2,005 | ||||||||||||||
| Central | 17,154 | 10,994 | 19,691 | 57,027 | 32,331 | |||||||||||||||||||
| Southern | 2,683 | 2,618 | 3,927 | 10,242 | 7,419 | |||||||||||||||||||
| Total Appalachia | $ | 20,574 | $ | 13,982 | $ | 24,551 | $ | 69,548 | $ | 41,755 | ||||||||||||||
| Illinois Basin | 3,431 | 8,745 | 2,978 | 13,055 | 21,611 | |||||||||||||||||||
| Northern Powder River Basin | 2,945 | 4,314 | 2,384 | 7,827 | 8,314 | |||||||||||||||||||
| Total coal royalty revenue | $ | 26,950 | $ | 27,041 | $ | 29,913 | $ | 90,430 | $ | 71,680 | ||||||||||||||
| Other revenues | ||||||||||||||||||||||||
| Minimums recognized as revenue | $ | 9,812 | $ | 9,755 | $ | 7,547 | $ | 22,556 | $ | 60,455 | ||||||||||||||
| Transportation and processing fees | 5,570 | 6,127 | 5,520 | 15,729 | 15,663 | |||||||||||||||||||
| Property tax revenue | 513 | 2,567 | 1,100 | 4,311 | 8,899 | |||||||||||||||||||
| Wheelage | 1,219 | 919 | 1,025 | 3,510 | 1,797 | |||||||||||||||||||
| Coal override revenue | 3,059 | 615 | 1,885 | 5,769 | 1,482 | |||||||||||||||||||
| Lease assignment fee | 1,000 | — | — | 1,000 | ||||||||||||||||||||
| Hard mineral royalty revenues | 817 | 700 | 1,452 | 3,513 | 2,194 | |||||||||||||||||||
| Oil and gas royalty revenues | 117 | 1,283 | 924 | 2,532 | 2,538 | |||||||||||||||||||
| Other | 356 | (69 | ) | 260 | 827 | 1,136 | ||||||||||||||||||
| Total other revenues | $ | 22,463 | $ | 21,897 | $ | 19,713 | $ | 59,747 | $ | 94,164 | ||||||||||||||
| Coal royalty and other income | 49,413 | 48,938 | 49,626 | 150,177 | 165,844 | |||||||||||||||||||
| Gain on coal royalty and other segment asset sales | 154 | 6,425 | 3,184 | 3,367 | 27,270 | |||||||||||||||||||
| Total coal royalty and other segment revenues and other income | $ | 49,567 | $ | 55,363 | $ | 52,810 | $ | 153,544 | $ | 193,114 | ||||||||||||||
|
____________________ |
|||
| (1) | During the three months ended September 30, 2016, Northern Appalachia was impacted by a prior period adjustment of 0.5 million tons and less than $0.1 million in royalty revenue related to the Hibbs Run mine that temporarily ceased production during 2016. Absent this adjustment, production in the Northern Appalachia region was 0.2 million tons with revenue of $0.4 million. Coal royalty revenue per ton removes the impact of the Hibbs Run prior period adjustment. | ||
| Natural Resource Partners L.P. | |||||||||||||||||||||||||
| Reconciliation of Non-GAAP Measures | |||||||||||||||||||||||||
| Distributable Cash Flow | |||||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||||
|
Coal |
Construction |
Corporate |
|||||||||||||||||||||||
|
(In thousands) |
Soda Ash | Total | |||||||||||||||||||||||
| Three Months Ended September 30, 2017 | |||||||||||||||||||||||||
| Net cash provided by (used in) operating activities of continuing operations | $ | 44,119 | $ | 8,992 | $ | 2,155 | $ | (29,466 | ) | $ | 25,800 | ||||||||||||||
| Add: return of equity from unconsolidated investment | — | 3,258 | — | — | 3,258 | ||||||||||||||||||||
| Add: proceeds from sale of assets | 76 | — | 75 | — | 151 | ||||||||||||||||||||
| Add: return on long-term contract receivable | 600 | — | — | — | 600 | ||||||||||||||||||||
| Less: maintenance capital expenditures | — | — | (926 | ) | — | (926 | ) | ||||||||||||||||||
| Distributable cash flow | $ | 44,795 | $ | 12,250 | $ | 1,304 | $ | (29,466 | ) | $ | 28,883 | ||||||||||||||
| Proceeds from sale of assets | 76 | — | 75 | — | 151 | ||||||||||||||||||||
| Distributable cash flow adjusted for proceeds from sale of assets | $ | 44,719 | $ | 12,250 | $ | 1,229 | $ | (29,466 | ) | $ | 28,732 | ||||||||||||||
| Three Months Ended September 30, 2016 | |||||||||||||||||||||||||
| Net cash provided by (used in) operating activities of continuing operations | $ | 34,997 | $ | 12,250 | $ | 4,357 | $ | (15,703 | ) | $ | 35,901 | ||||||||||||||
| Add: proceeds from sale of assets | 10,294 | — | 78 | — | 10,372 | ||||||||||||||||||||
| Add: proceeds from sale of assets from discontinued operations | — | — | — | — | 109,889 | ||||||||||||||||||||
| Add: return on long-term contract receivables—affiliate | 397 | — | — | — | 397 | ||||||||||||||||||||
| Less: maintenance capital expenditures | (5 | ) | — | (342 | ) | — | (347 | ) | |||||||||||||||||
| Distributable cash flow | $ | 45,683 | $ | 12,250 | $ | 4,093 | $ | (15,703 | ) | $ | 156,212 | ||||||||||||||
| Proceeds from sale of assets, including discontinued operations | 10,294 | — | 78 | — | 120,261 | ||||||||||||||||||||
| Distributable cash flow adjusted for proceeds from sale of assets | $ | 35,389 | $ | 12,250 | $ | 4,015 | $ | (15,703 | ) | $ | 35,951 | ||||||||||||||
| Three Months Ended June 30, 2017 | |||||||||||||||||||||||||
| Net cash provided by (used in) operating activities of continuing operations | $ | 38,537 | $ | 9,862 | $ | 5,476 | $ | (18,770 | ) | $ | 35,105 | ||||||||||||||
| Add: return of equity from unconsolidated investment | — | 2,388 | — | — | 2,388 | ||||||||||||||||||||
| Add: proceeds from sale of assets | 1,292 | — | 363 | — | 1,655 | ||||||||||||||||||||
| Add: return on long-term contract receivables (including affiliate) | 1,597 | — | — | — | 1,597 | ||||||||||||||||||||
| Less: maintenance capital expenditures | — | — | (2,415 | ) | — | (2,415 | ) | ||||||||||||||||||
|
Distributable cash flow |
$ | 41,426 | $ | 12,250 | $ | 3,424 | $ | (18,770 | ) | $ | 38,330 | ||||||||||||||
| Proceeds from sale of assets | 1,292 | — | 363 | — | 1,655 | ||||||||||||||||||||
| Distributable cash flow adjusted for proceeds from sale of assets | $ | 40,134 | $ | 12,250 | $ | 3,061 | $ | (18,770 | ) | $ | 36,675 | ||||||||||||||
|
Natural Resource Partners L.P. |
|||||||||||||||||||||||||
|
Reconciliation of Non-GAAP Measures |
|||||||||||||||||||||||||
| Distributable Cash Flow | |||||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||||
|
Coal |
Construction |
Corporate |
|||||||||||||||||||||||
|
(In thousands) |
Soda Ash | Total | |||||||||||||||||||||||
| Nine Months Ended September 30, 2017 | |||||||||||||||||||||||||
| Net cash provided by (used in) operating activities of continuing operations | $ | 120,588 | $ | 31,104 | $ | 11,677 | $ | (81,975 | ) | $ | 81,394 | ||||||||||||||
| Add: return of equity from unconsolidated investment | — | 5,646 | — | — | 5,646 | ||||||||||||||||||||
| Add: proceeds from the sale of assets | 959 | — | 460 | — | 1,419 | ||||||||||||||||||||
| Add: return on long-term contract receivables (including affiliate) | 2,611 | — | — | — | 2,611 | ||||||||||||||||||||
| Less: maintenance capital expenditures | — | — | (5,310 | ) | — | (5,310 | ) | ||||||||||||||||||
| Distributable cash flow | $ | 124,158 | $ | 36,750 | $ | 6,827 | $ | (81,975 | ) | $ | 85,760 | ||||||||||||||
| Proceeds from sale of assets | 959 | — | 460 | — | 1,419 | ||||||||||||||||||||
| Distributable cash flow adjusted for proceeds from sale of assets | $ | 123,199 | $ | 36,750 | $ | 6,367 | $ | (81,975 | ) | $ | 84,341 | ||||||||||||||
| Nine Months Ended September 30, 2016 | |||||||||||||||||||||||||
| Net cash provided by (used in) operating activities of continuing operations | $ | 91,372 | $ | 34,300 | $ | 16,680 | $ | (67,805 | ) | $ | 74,547 | ||||||||||||||
| Add: Proceeds from the sale of assets | 55,262 | — | 102 | — | 55,364 | ||||||||||||||||||||
| Add: proceeds from sale of assets included in discontinued operations | — | — | 109,889 | ||||||||||||||||||||||
| Add: return on long-term contract receivables—affiliate | 2,577 | — | — | — | 2,577 | ||||||||||||||||||||
| Less: maintenance capital expenditures | (5 | ) | — | (3,671 | ) | — | (3,676 | ) | |||||||||||||||||
| Distributable cash flow | $ | 149,206 | $ | 34,300 | $ | 13,111 | $ | (67,805 | ) | $ | 238,701 | ||||||||||||||
| Proceeds from sale of assets, including discontinued operations | 55,262 | — | 102 | — | 165,253 | ||||||||||||||||||||
| Distributable cash flow adjusted for proceeds from sale of assets | $ | 93,944 | $ | 34,300 | $ | 13,009 | $ | (67,805 | ) | $ | 73,448 | ||||||||||||||
|
|
|||||||||||||||||||||||||
|
Natural Resource Partners L.P. |
|||||||||||||||||||||||||
|
Reconciliation of Non-GAAP Measures |
|||||||||||||||||||||||||
|
Adjusted EBITDA |
|||||||||||||||||||||||||
|
(Unaudited) |
|||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||
|
Coal |
Construction |
Corporate |
|||||||||||||||||||||||
|
(In thousands) |
Soda Ash | Total | |||||||||||||||||||||||
| Three Months Ended September 30, 2017 | |||||||||||||||||||||||||
| Net income (loss) from continuing operations | $ | 37,992 | $ | 8,993 | $ | 3,342 | $ | (23,828 | ) | $ | 26,499 | ||||||||||||||
| Less: equity earnings from unconsolidated investment | — | (8,993 | ) | — | — | (8,993 | ) | ||||||||||||||||||
| Add: distributions from unconsolidated investment | — | 12,250 | — | — | 12,250 | ||||||||||||||||||||
| Add: interest expense | — | — | 59 | 20,021 | 20,080 | ||||||||||||||||||||
| Add: depreciation, depletion and amortization | 5,305 | — | 3,001 | — | 8,306 | ||||||||||||||||||||
| Add: asset impairments | — | — | — | — | — | ||||||||||||||||||||
| Adjusted EBITDA | $ | 43,297 | $ | 12,250 | $ | 6,402 | $ | (3,807 | ) | $ | 58,142 | ||||||||||||||
| Gains on sale of assets | 154 | — | 17 | — | 171 | ||||||||||||||||||||
| Adjusted EBITDA excluding gains on sale of assets | $ | 43,143 | $ | 12,250 | $ | 6,385 | $ | (3,807 | ) | $ | 57,971 | ||||||||||||||
| Three Months Ended September 30, 2016 | |||||||||||||||||||||||||
| Net income (loss) from continuing operations | $ | 32,250 | $ | 10,753 | $ | 1,039 | $ | (27,623 | ) | $ | 16,419 | ||||||||||||||
| Less: equity earnings from unconsolidated investment | — | (10,753 | ) | — | — | (10,753 | ) | ||||||||||||||||||
| Add: distributions from unconsolidated investment | — | 12,250 | — | — | 12,250 | ||||||||||||||||||||
| Add: interest expense | — | — | — | 22,491 | 22,491 | ||||||||||||||||||||
| Add: depreciation, depletion and amortization | 9,070 | — | 3,761 | — | 12,831 | ||||||||||||||||||||
| Add: asset impairments | 5,697 | — | — | — | 5,697 | ||||||||||||||||||||
| Adjusted EBITDA | $ | 47,017 | $ | 12,250 | $ | 4,800 | $ | (5,132 | ) | $ | 58,935 | ||||||||||||||
| Gains on sale of assets | 6,425 | — | 1 | — | 6,426 | ||||||||||||||||||||
| Adjusted EBITDA excluding gains on sale of assets | $ | 40,592 | $ | 12,250 | $ | 4,799 | $ | (5,132 | ) | $ | 52,509 | ||||||||||||||
| Three Months Ended June 30, 2017 | |||||||||||||||||||||||||
| Net income (loss) from continuing operations | $ | 42,084 | $ | 8,389 | $ | 2,636 | $ | (27,252 | ) | $ | 25,857 | ||||||||||||||
| Less: equity earnings from unconsolidated investment | — | (8,389 | ) | — | — | (8,389 | ) | ||||||||||||||||||
| Add: distributions from unconsolidated investment | — | 12,250 | — | — | 12,250 | ||||||||||||||||||||
| Add: interest expense | — | — | 178 | 20,199 | 20,377 | ||||||||||||||||||||
| Add: debt modification expense | — | — | — | 132 | 132 | ||||||||||||||||||||
| Add: loss on extinguishment of debt | — | — | — | 4,107 | 4,107 | ||||||||||||||||||||
| Add: depreciation, depletion and amortization | 5,375 | — | 3,030 | — | 8,405 | ||||||||||||||||||||
| Adjusted EBITDA | $ | 47,459 | $ | 12,250 | $ | 5,844 | $ | (2,814 | ) | $ | 62,739 | ||||||||||||||
| Gains on sale of assets | 3,184 | — | 177 | — | 3,361 | ||||||||||||||||||||
| Adjusted EBITDA excluding gains on sale of assets | $ | 44,275 | $ | 12,250 | $ | 5,667 | $ | (2,814 | ) | $ | 59,378 | ||||||||||||||
| Natural Resource Partners L.P. | |||||||||||||||||||||||||
| Reconciliation of Non-GAAP Measures | |||||||||||||||||||||||||
| Adjusted EBITDA | |||||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||||
|
Coal |
Construction |
Corporate |
|||||||||||||||||||||||
|
(In thousands) |
Soda Ash | Total | |||||||||||||||||||||||
| Nine Months Ended September 30, 2017 | |||||||||||||||||||||||||
| Net income (loss) from continuing operations | $ | 115,170 | $ | 27,676 | $ | 4,439 | $ | (88,818 | ) | $ | 58,467 | ||||||||||||||
| Less: equity earnings from unconsolidated investment | — | (27,676 | ) | — | — | (27,676 | ) | ||||||||||||||||||
| Add: distributions from unconsolidated investment | — | 36,750 | — | — | 36,750 | ||||||||||||||||||||
| Add: interest expense | — | — | 632 | 62,966 | 63,598 | ||||||||||||||||||||
| Add: debt modification expense | — | — | — | 7,939 | 7,939 | ||||||||||||||||||||
| Add: loss on extinguishment of debt | — | — | — | 4,107 | 4,107 | ||||||||||||||||||||
| Add: depreciation, depletion and amortization | 17,653 | — | 9,550 | — | 27,203 | ||||||||||||||||||||
| Add: asset impairments | 1,778 | — | — | — | 1,778 | ||||||||||||||||||||
| Adjusted EBITDA | $ | 134,601 | $ | 36,750 | $ | 14,621 | $ | (13,806 | ) | $ | 172,166 | ||||||||||||||
| Gains on sale of assets | 3,367 | — | 209 | — | 3,576 | ||||||||||||||||||||
| Adjusted EBITDA excluding gains on sale of assets | $ | 131,234 | $ | 36,750 | $ | 14,412 | $ | (13,806 | ) | $ | 168,590 | ||||||||||||||
| Nine Months Ended September 30, 2016 | |||||||||||||||||||||||||
| Net income (loss) from continuing operations | $ | 137,802 | $ | 30,742 | $ | 3,441 | $ | (80,582 | ) | $ | 91,403 | ||||||||||||||
| Less: equity earnings from unconsolidated investment | — | (30,742 | ) | — | — | (30,742 | ) | ||||||||||||||||||
| Add: distributions from unconsolidated investment | — | 34,300 | — | — | 34,300 | ||||||||||||||||||||
| Add: interest expense | — | — | — | 67,265 | 67,265 | ||||||||||||||||||||
| Add: depreciation, depletion and amortization | 23,496 | — | 11,013 | — | 34,509 | ||||||||||||||||||||
| Add: asset impairments | 7,681 | — | — | — | 7,681 | ||||||||||||||||||||
| Adjusted EBITDA | $ | 168,979 | $ | 34,300 | $ | 14,454 | $ | (13,317 | ) | $ | 204,416 | ||||||||||||||
| Gains on sale of assets | 27,270 | — | 10 | — | 27,280 | ||||||||||||||||||||
| Adjusted EBITDA excluding gains on sale of assets | $ | 141,709 | $ | 34,300 | $ | 14,444 | $ | (13,317 | ) | $ | 177,136 | ||||||||||||||
| Natural Resource Partners L.P. | |||||||||||||||||||||||||
| Reconciliation of Non-GAAP Measures | |||||||||||||||||||||||||
| Last Twelve Months Distributable Cash Flow | |||||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||||||
| December | March 31, | June 30, | September | Last 12 | |||||||||||||||||||||
|
(In thousands, except ratios) |
31, 2016 | 2017 | 2017 | 30, 2017 | Months | ||||||||||||||||||||
|
Net cash provided by operating activities of continuing operations |
$ | 26,096 | $ | 20,489 | $ | 35,105 | $ | 25,800 | $ | 107,490 | |||||||||||||||
| Add: return of equity from unconsolidated investment | — | — | 2,388 | 3,258 | 5,646 | ||||||||||||||||||||
| Add: proceeds from the sale of assets | 7,019 | (387 | ) | 1,655 | 151 | 8,438 | |||||||||||||||||||
| Add: proceeds from the sale of assets included in discontinued operations | (17 | ) | — | — | — | (17 | ) | ||||||||||||||||||
| Add: return on long-term contract receivables (including affiliate) | 391 | 414 | 1,597 | 600 | 3,002 | ||||||||||||||||||||
| Less: maintenance capital expenditures | (775 | ) | (1,969 | ) | (2,415 | ) | (926 | ) | (6,085 | ) | |||||||||||||||
| Distributable cash flow | $ | 32,714 | $ | 18,547 | $ | 38,330 | $ | 28,883 | $ | 118,474 | |||||||||||||||
| Proceeds from sale of assets, including discontinued operations | 7,002 | (387 | ) | 1,655 | 151 | 8,421 | |||||||||||||||||||
| Distributable cash flow adjusted for proceeds from sale of assets | $ | 25,712 | $ | 18,934 | $ | 36,675 | $ | 28,732 | $ | 110,053 | |||||||||||||||
| Unit Distribution Coverage Ratio (1) | 5.3 | x | |||||||||||||||||||||||
|
____________________ |
|||
| (1) | Common unit distribution coverage ratio is calculated by dividing distributable cash flow by total distributions on the common units and to the general partner. | ||
| Last Twelve Months Adjusted EBITDA | |||||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||||||
| December | March 31, | June 30, | September | Last 12 | |||||||||||||||||||||
|
(In thousands, except ratios) |
31, 2016 | 2017 | 2017 | 30, 2017 | Months | ||||||||||||||||||||
|
Net income from continuing operations |
$ | 3,811 | $ | 6,111 | $ | 25,857 | $ | 26,499 | $ | 62,278 | |||||||||||||||
| Less: equity earnings from unconsolidated investment | (9,319 | ) | (10,294 | ) | (8,389 | ) | (8,993 | ) | (36,995 | ) | |||||||||||||||
| Add: distributions from unconsolidated investment | 12,250 | 12,250 | 12,250 | 12,250 | 49,000 | ||||||||||||||||||||
| Add: interest expense | 23,305 | 23,141 | 20,377 | 20,080 | 86,903 | ||||||||||||||||||||
| Add: debt modification expense | — | 7,807 | 132 | — | 7,939 | ||||||||||||||||||||
| Add: loss on extinguishment of debt | — | — | 4,107 | — | 4,107 | ||||||||||||||||||||
| Add: depreciation, depletion and amortization | 11,763 | 10,492 | 8,405 | 8,306 | 38,966 | ||||||||||||||||||||
| Add: asset impairments | 9,245 | 1,778 | — | — | 11,023 | ||||||||||||||||||||
| Adjusted EBITDA | $ | 51,055 | $ | 51,285 | $ | 62,739 | $ | 58,142 | $ | 223,221 | |||||||||||||||
| Debt-to-Adjusted EBITDA, September 30, 2017 | 4.3 | x | |||||||||||||||||||||||
| Redemption of 9.125% senior notes, October 2017 | $ | 94,362 | |||||||||||||||||||||||
| Payment on credit facility, October 2017 | $ | 17,000 | |||||||||||||||||||||||
| Debt at November 7, 2017, face value (after redemption and payment noted above) | $ | 844,507 | |||||||||||||||||||||||
| Debt-to-Adjusted EBITDA, November 7, 2017 | 3.8 | x | |||||||||||||||||||||||
| Natural Resource Partners L.P. | ||||||||||
| Reconciliation of Non-GAAP Measures | ||||||||||
| Adjusted Net Income | ||||||||||
| (Unaudited) | ||||||||||
| Three Months Ended | ||||||||||
| September 30, | ||||||||||
|
(In thousands) |
2017 | 2016 | ||||||||
| Net income | $ | 26,066 | $ | 23,531 | ||||||
| Less: income attributable to preferred unitholders | (7,650 | ) | — | |||||||
| Net income attributable to common unitholders and general partner | $ | 18,416 | $ | 23,531 | ||||||
| Add: asset impairments | — | 5,697 | ||||||||
| Add: loss from discontinued operations | 433 | (7,112 | ) | |||||||
| Add: write-off of bad debt expense | 1,534 | 1,679 | ||||||||
| Less: gain on asset sales | (171 | ) | (6,426 | ) | ||||||
| Less: non-cash revenue associated with lease modifications and forfeitures | (2,142 | ) | (3,627 | ) | ||||||
| Adjusted net income | $ | 18,070 | $ | 13,742 | ||||||
|
Adjusted Coal Royalty and Other Operating Income (Unaudited) |
||||||||||
| Three Months Ended | ||||||||||
| September 30, | ||||||||||
|
(In thousands) |
2017 | 2016 | ||||||||
| Coal royalty and other operating income | $ | 37,992 | $ | 32,250 | ||||||
| Add: asset impairments | — | 5,697 | ||||||||
| Add: write-off of bad debt expense | 1,534 | 1,679 | ||||||||
| Less: gain on asset sales | (154 | ) | (6,425 | ) | ||||||
| Less: non-cash revenue associated with lease modifications and forfeitures | (2,142 | ) | (3,627 | ) | ||||||
| Adjusted coal royalty and other operating income | $ | 37,230 | $ | 29,574 | ||||||
| Natural Resource Partners L.P. | |||||
| Recap of Metrics (Unaudited) | |||||
|
(In thousands, except units, prices, ratio and yields) |
November 7, 2017 | ||||
| Common Unit price | $ | 24.95 | |||
| Enterprise value | |||||
| Equity market cap | $ | 305,188 | |||
| Debt | 844,507 | ||||
| Preferred Units | 250,000 | ||||
| Intrinsic Value of Warrants | 3,745 | ||||
| Total enterprise value | $ | 1,403,440 | |||
| DCF—last twelve months | $ | 118,474 | |||
| DCF/Equity market cap | 39 | % | |||
| Adjusted EBITDA—last twelve months | $ | 223,221 | |||
| Adjusted EBITDA/Total Enterprise value | 16 | % | |||
