HOUSTON--(BUSINESS WIRE)--Natural Resource Partners L.P. (NYSE:NRP) today reported fourth quarter and full year 2017 results.
Craig Nunez, President and Chief Operating Officer, commented: "A successful fourth quarter capped a year of significant achievement for NRP. We continue to generate substantial amounts of cash from operations and our fourth quarter results have considerably improved compared to prior year levels. Compared to the prior quarter, our results reflect improved performances from our Coal Royalty, Soda Ash and Construction Aggregates business segments. In addition, we continue to strengthen our balance sheet and have reduced debt $311.1 million during 2017. We enter 2018 with a stronger balance sheet, lower interest expense and improved operating performance."
At the end of the fourth quarter of 2017, NRP had liquidity of $119.8 million, consisting of $29.8 million in cash and $90.0 million of borrowing capacity available under its credit facility. NRP's consolidated Debt-to-Adjusted EBITDA ratio at year-end 2017 was 3.6x, 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 business. NRP's goal is to achieve a leverage ratio, defined as Debt-to-Adjusted 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 fourth quarter of 2017, NRP paid a cash distribution of $0.45 per common unit and paid a distribution on NRP’s 12.0% Class A Convertible Preferred Units in February 2018. NRP also redeemed all outstanding paid-in-kind Preferred Units in February 2018 at par.
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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 $39.7 million and Adjusted EBITDA was $46.7 million. For the quarter, net cash provided by operating and investing activities were $45.6 million and $0.6 million, respectively, and DCF was $46.1 million. NRP's Q4 2017 results represent a substantial improvement from Q4 2016 and a modest increase compared to Q3 2017. Adjusted coal royalty and other operating income compared to Q4 2016 increased 34%, DCF adjusted for proceeds from the sale of assets increased 6% and Adjusted EBITDA excluding gains on sale of assets increased 20%. Variances in Q4 2017 compared to Q4 2016 by our major coal producing regions follow:
- Appalachia: Coal royalty revenue increased $2.9 million in this region primarily as a result of increased metallurgical coal prices and production.
- Illinois Basin: Lower production in this region led to a $4.1 million decrease in coal royalty revenue, despite increases 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 $3.5 million increase in overriding royalty revenue and wheelage in this region.
- Northern Powder River Basin: Higher prices and production in this region led to the $1.5 million increase in coal royalty revenue. The higher production was a result of increased mining on our acreage in this region, which has a checkerboard coal reserve ownership pattern.
Operating income for the year was $154.9 million and Adjusted EBITDA was $181.3 million. Net cash provided by operating, investing and financing activities were $166.1 million, $4.2 million and $0.5 million, respectively, and DCF was $170.3 million. Adjusted Coal Royalty and Other Operating Income compared to 2016 increased 40% and DCF adjusted for proceeds from the sale of assets increased 23% and Adjusted EBITDA excluding gains on sale of assets decreased 1%. The decrease in Adjusted EBITDA year-over-year was impacted by $40.5 million of revenue resulting from one-time lease modifications in 2016. Variances in year-ended 2017 compared to year-ended 2016 by our major coal producing regions follow:
- Appalachia: Coal royalty revenue increased $30.7 million in this region primarily as a result of increased metallurgical coal prices and production.
- Illinois Basin: Lower production in this region led to a $12.7 million decrease in coal royalty revenue, despite increases 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 $7.5 million increase in overriding royalty revenue and wheelage in this region.
- Northern Powder River Basin: Higher production in this region led to the $1.0 million increase in coal royalty revenue despite a relatively small decrease in prices year-over-year. The higher production was a result of increased mining on our acreage in this region, which has a checkerboard coal reserve ownership pattern.
Soda Ash
During Q4 2017, international prices for soda ash, particularly in Asia, continued to be strong, and domestic prices improved slightly over 2016. 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 Q4 2016. NRP's equity in earnings from Ciner Wyoming of $12.8 million increased 37% in Q4 2017, compared to Q4 2016 due to higher production levels along with higher international prices. The higher production levels were primarily the result of production initiatives that were undertaken earlier in 2017 to improve reliability and increase utilization of production units.
During the year, NRP received $49.0 million in cash distributions from Ciner Wyoming and recorded equity in earnings from Ciner Wyoming of $40.5 million.
Construction Aggregates
Operating income for the quarter was $2.0 million and Adjusted EBITDA was $5.1 million. Performance increased compared to the prior quarter and Q4 2016 as a result of increased production and sales volumes, higher margins on road construction and asphalt paving projects and increased marine terminal activity. For the quarter, net cash provided by (used in) operating, investing and financing activities were $4.0 million, $(0.7) million and $(0.2) million, respectively, and DCF was $3.4 million. DCF increased compared to Q4 2016 and the prior quarter as a result of the improved operating performance.
Operating income for the year was $6.4 million and Adjusted EBITDA was $19.8 million. These amounts improved compared to the prior year primarily due to a higher production and sales of crushed stone, gravel and sand, higher delivery and haul income and increased road construction and asphalt paving projects. Net cash provided by (used in) operating, investing activities and financing activities were $15.7 million. $(6.5) million and $(1.3) million, respectively, and DCF was $10.2 million.
Corporate and Finance
Total costs in Q4 2017 were $23.8 million, which includes $19.2 million of interest expense. While these amounts were in line with the previous quarter, total corporate and financing costs decreased 22% compared to the same period last year due to lower interest expense and the LTIP awards expensed in Q4 2016 in connection with NRP's recapitalization transactions.
Total costs in 2017 were $112.6, which includes $82.2 million of interest expense, $7.9 million of debt modification expense and $4.1 million loss on extinguishment of debt.
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 55454887. 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 55454887 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. 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
“Distributable Cash Flow” is a non-GAAP financial measure that we define as net cash provided by 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 of 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. In addition, DCF presented below is not calculated or presented on the same basis as Distributable Cash Flow as defined in our partnership agreement, which is used as a metric to determine whether we are able to increase quarterly distributions to our common unitholders. 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 EBITDA" is a non-GAAP financial measure that we define as net income (loss) from continuing operations less equity earnings from unconsolidated investment and gain on reserve swap; plus distributions from unconsolidated investment, interest expense, net, 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 or Consolidated EBITDDA as defined in Opco's debt agreements. 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.
“Adjusted Net Income” is a non-GAAP financial measure that we define as Net income attributable to common unitholders and general partner plus restructuring transaction expenses that include debt modification expense, loss on extinguishment of debt and restructuring-related incentive compensation expense, asset impairments and income (loss) from discontinued operations; less gain on sale of assets and non-cash revenue associated with lease modifications or terminations. 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 are non-cash charges. Excluding these from net income allows us to better compare results from ongoing operations period-over-period.
“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; 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. Excluding these from Coal royalty and other operating income allows us to better compare results from ongoing operations period-over-period.
-Financial Tables, Reconciliation of Non-GAAP Measures and Recap of Metrics Follow-
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Natural Resource Partners L.P. Financial Tables |
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| Consolidated Statements of Comprehensive Income | |||||||||||||||||||||||||
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Unaudited |
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| Three Months Ended | Year Ended | ||||||||||||||||||||||||
| December 31, | September 30, | December 31, | |||||||||||||||||||||||
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(In thousands, except per unit data) |
2017 | 2016 | 2017 | 2017 | 2016 | ||||||||||||||||||||
| Revenues and other income: | |||||||||||||||||||||||||
| Coal royalty and other | $ | 47,130 | $ | 28,184 | $ | 43,508 | $ | 158,399 | $ | 144,520 | |||||||||||||||
| Coal royalty and other—affiliates | 223 | 12,414 | 335 | 23,402 | 46,259 | ||||||||||||||||||||
| Transportation and processing | 4,793 | — | 5,570 | 14,510 | — | ||||||||||||||||||||
| Transportation and processing—affiliates | — | 3,673 | — | 6,012 | 19,336 | ||||||||||||||||||||
| Construction aggregates | 30,571 | 27,600 | 29,553 | 112,970 | 103,755 | ||||||||||||||||||||
| Road construction and asphalt paving | 5,324 | 5,121 | 5,157 | 18,411 | 17,047 | ||||||||||||||||||||
| Equity in earnings of Ciner Wyoming | 12,781 | 9,319 | 8,993 | 40,457 | 40,061 | ||||||||||||||||||||
| Gain on asset sales, net | 280 | 1,801 | 171 | 3,856 | 29,081 | ||||||||||||||||||||
| Total revenues and other income | $ | 101,102 | $ | 88,112 | $ | 93,287 | $ | 378,017 | $ | 400,059 | |||||||||||||||
| Operating expenses: | |||||||||||||||||||||||||
| Operating and maintenance expenses | $ | 33,893 | $ | 31,797 | $ | 32,441 | $ | 126,982 | $ | 119,621 | |||||||||||||||
| Operating and maintenance expenses—affiliates, net | 2,606 | 977 | 2,154 | 9,534 | 10,925 | ||||||||||||||||||||
| Depreciation, depletion and amortization | 8,790 | 10,906 | 8,306 | 34,985 | 43,087 | ||||||||||||||||||||
| Amortization expense—affiliate | — | 857 | — | 1,008 | 3,185 | ||||||||||||||||||||
| General and administrative | 2,756 | 6,303 | 2,648 | 13,513 | 16,979 | ||||||||||||||||||||
| General and administrative—affiliates | 1,806 | 921 | 1,207 | 4,989 | 3,591 | ||||||||||||||||||||
| Asset impairments | 1,253 | 9,245 | — | 3,031 | 16,926 | ||||||||||||||||||||
| Total operating expenses | $ | 51,104 | $ | 61,006 | $ | 46,756 | $ | 194,042 | $ | 214,314 | |||||||||||||||
| Income from operations | $ | 49,998 | $ | 27,106 | $ | 46,531 | $ | 183,975 | $ | 185,745 | |||||||||||||||
| Other income (expense) | |||||||||||||||||||||||||
| Interest expense | $ | (19,304 | ) | $ | (23,305 | ) | $ | (20,080 | ) | $ | (82,902 | ) | $ | (90,047 | ) | ||||||||||
| Interest expense—affiliate | — | — | — | — | (523 | ) | |||||||||||||||||||
| Debt modification expense | — | — | — | (7,939 | ) | — | |||||||||||||||||||
| Loss on extinguishment of debt | — | — | — | (4,107 | ) | — | |||||||||||||||||||
| Interest income | 47 | 10 | 48 | 181 | 39 | ||||||||||||||||||||
| Other expense, net | $ | (19,257 | ) | $ | (23,295 | ) | $ | (20,032 | ) | $ | (94,767 | ) | $ | (90,531 | ) | ||||||||||
| Net income from continuing operations | $ | 30,741 | $ | 3,811 | $ | 26,499 | $ | 89,208 | $ | 95,214 | |||||||||||||||
| Income (loss) from discontinued operations | (34 | ) | (323 | ) | (433 | ) | (541 | ) | 1,678 | ||||||||||||||||
| Net income | $ | 30,707 | $ | 3,488 | $ | 26,066 | $ | 88,667 | $ | 96,892 | |||||||||||||||
| Less: income attributable to preferred unitholders | (7,765 | ) | — | (7,650 | ) | (25,453 | ) | — | |||||||||||||||||
| Net income attributable to common unitholders and general partner | $ | 22,942 | $ | 3,488 | $ | 18,416 | $ | 63,214 | $ | 96,892 | |||||||||||||||
| Net income (loss) attributable to common unitholders | 22,483 | 3,497 | 18,048 | 61,950 | 95,229 | ||||||||||||||||||||
| Net income (loss) attributable to the general partner | 459 | (9 | ) | 368 | 1,264 | 1,663 | |||||||||||||||||||
| Income from continuing operations per common unit | |||||||||||||||||||||||||
| Basic | $ | 1.84 | $ | 0.31 | $ | 1.51 | $ | 5.11 | $ | 7.65 | |||||||||||||||
| Diluted | $ | 1.26 | $ | 0.31 | $ | 1.08 | $ | 3.98 | $ | 7.65 | |||||||||||||||
| Net income per common unit | |||||||||||||||||||||||||
| Basic | $ | 1.84 | $ | 0.28 | $ | 1.48 | $ | 5.06 | $ | 7.78 | |||||||||||||||
| Diluted | $ | 1.26 | $ | 0.28 | $ | 1.07 | $ | 3.96 | $ | 7.78 | |||||||||||||||
| Net income | $ | 30,707 | $ | 3,488 | $ | 26,066 | $ | 88,667 | $ | 96,892 | |||||||||||||||
| Add: comprehensive income (loss) from unconsolidated investment and other | (234 | ) | 1,178 | (268 | ) | (1,647 | ) | 486 | |||||||||||||||||
| Comprehensive income | $ | 30,473 | $ | 4,666 | $ | 25,798 | $ | 87,020 | $ | 97,378 | |||||||||||||||
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Natural Resource Partners L.P. Financial Tables |
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Consolidated Statements of Cash Flows |
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Unaudited |
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| Three Months Ended | Year Ended | |||||||||||||||||||||||||
| December 31, | September 30, | December 31, | ||||||||||||||||||||||||
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(In thousands) |
2017 | 2016 | 2017 | 2017 | 2016 | |||||||||||||||||||||
| Cash flows from operating activities: | ||||||||||||||||||||||||||
| Net income | $ | 30,707 | $ | 3,488 | $ | 26,066 | $ | 88,667 | $ | 96,892 | ||||||||||||||||
| Adjustments to reconcile net income to net cash provided by operating activities of continuing operations: | ||||||||||||||||||||||||||
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Depreciation, depletion and amortization |
8,790 | 10,906 | 8,306 | 34,985 | 43,087 | |||||||||||||||||||||
| Amortization expense—affiliates | — | 857 | — | 1,008 | 3,185 | |||||||||||||||||||||
| Return on earnings from unconsolidated investment | 12,250 | 12,250 | 8,993 | 43,354 | 46,550 | |||||||||||||||||||||
| Equity earnings from unconsolidated investment | (12,781 | ) | (9,319 | ) | (8,993 | ) | (40,457 | ) | (40,061 | ) | ||||||||||||||||
| Gain on asset sales, net | (280 | ) | (1,801 | ) | (171 | ) | (3,856 | ) | (29,081 | ) | ||||||||||||||||
| Debt modification expense | — | — | — | 7,939 | — | |||||||||||||||||||||
| Loss on extinguishment of debt | — | — | — | 4,107 | — | |||||||||||||||||||||
| (Income) loss from discontinued operations | 34 | 323 | 433 | 541 | (1,678 | ) | ||||||||||||||||||||
| Asset impairments | 1,253 | 9,245 | — | 3,031 | 16,926 | |||||||||||||||||||||
| Amortization of debt issuance costs and other | 2,546 | 1,590 | 3,037 | 8,005 | 8,284 | |||||||||||||||||||||
| Other, net—affiliates | 1,119 | 145 | 200 | 1,207 | 993 | |||||||||||||||||||||
| Change in operating assets and liabilities: | ||||||||||||||||||||||||||
| Accounts receivable | 698 | 772 | 5,210 | 2,305 | 431 | |||||||||||||||||||||
| Accounts receivable—affiliates | 1,144 | 399 | 49 | 367 | (313 | ) | ||||||||||||||||||||
| Accounts payable | 631 | 72 | 684 | 1,361 | 707 | |||||||||||||||||||||
| Accounts payable—affiliates | (107 | ) | 110 | (272 | ) | (377 | ) | 139 | ||||||||||||||||||
| Accrued liabilities | (1,313 | ) | 6,361 | 173 | (8,443 | ) | 5,397 | |||||||||||||||||||
| Accrued liabilities—affiliates | 515 | — | — | 515 | — | |||||||||||||||||||||
| Accrued interest | 5,217 | (9,030 | ) | (8,727 | ) | (105 | ) | (779 | ) | |||||||||||||||||
| Accrued interest—affiliates | — | — | — | — | (456 | ) | ||||||||||||||||||||
| Deferred revenue | (5,786 | ) | 4,881 | (4,494 | ) | (5,791 | ) | (35,881 | ) | |||||||||||||||||
| Deferred revenue—affiliates | — | (3,032 | ) | — | (10,166 | ) | (11,222 | ) | ||||||||||||||||||
| Other items, net | 1,807 | (2,121 | ) | (4,694 | ) | (359 | ) | (2,477 | ) | |||||||||||||||||
| Net cash provided by operating activities of continuing operations | $ | 46,444 | $ | 26,096 | $ | 25,800 | $ | 127,838 | $ | 100,643 | ||||||||||||||||
| Net cash provided by (used in) operating activities of discontinued operations | (92 | ) | (855 | ) | (76 | ) | (699 | ) | 7,318 | |||||||||||||||||
| Net cash provided by operating activities | $ | 46,352 | $ | 25,241 | $ | 25,724 | $ | 127,139 | $ | 107,961 | ||||||||||||||||
| Cash flows from investing activities: | ||||||||||||||||||||||||||
| Return of equity from unconsolidated investment | $ | — | $ | — | $ | 3,258 | $ | 5,646 | $ | — | ||||||||||||||||
| Proceeds from sale of assets | 563 | 7,019 | 151 | 1,982 | 62,383 | |||||||||||||||||||||
| Return of long-term contract receivables | 399 | — | 600 | 2,206 | — | |||||||||||||||||||||
| Return of long-term contract receivables—affiliate | — | 391 | — | 804 | 2,968 | |||||||||||||||||||||
| Acquisition of plant and equipment and other | (1,065 | ) | (977 | ) | (1,238 | ) | (7,301 | ) | (5,408 | ) | ||||||||||||||||
| Net cash provided by (used in) investing activities of continuing operations | $ | (103 | ) | $ | 6,433 | $ | 2,771 | $ | 3,337 | $ | 59,943 | |||||||||||||||
| Net cash provided by investing activities of discontinued operations | — | 51 | 4 | 206 | 106,872 | |||||||||||||||||||||
| Net cash provided by (used in) investing activities | $ | (103 | ) | $ | 6,484 | $ | 2,775 | $ | 3,543 | $ | 166,815 | |||||||||||||||
| Consolidated Statements of Cash Flows—Continued | ||||||||||||||||||||||||||
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| Three Months Ended | Year Ended | |||||||||||||||||||||||||
| December 31, | September 30, | December 31, | ||||||||||||||||||||||||
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(In thousands) |
2017 | 2016 | 2017 | 2017 | 2016 | |||||||||||||||||||||
| Cash flows from financing activities: | ||||||||||||||||||||||||||
| Proceeds from issuance of Class A Convertible Preferred Units and Warrants, net | $ | — | $ | — | $ | — | $ | 242,100 | $ | — | ||||||||||||||||
| Proceeds from issuance of 2022 Senior Notes, net | — | — | — | 103,688 | — | |||||||||||||||||||||
| Proceeds from loans | 8,000 | — | 69,000 | 77,000 | 20,000 | |||||||||||||||||||||
| Repayments of loans | (136,027 | ) | (76,967 | ) | (8,000 | ) | (492,319 | ) | (183,141 | ) | ||||||||||||||||
| Distributions to common unitholders and general partner | (5,617 | ) | (5,616 | ) | (5,616 | ) | (22,467 | ) | (22,465 | ) | ||||||||||||||||
| Distributions to preferred unitholders | (3,825 | ) | — | (3,769 | ) | (8,844 | ) | — | ||||||||||||||||||
| Proceeds from (contributions to) discontinued operations | (92 | ) | (805 | ) | (72 | ) | (493 | ) | 39,421 | |||||||||||||||||
| Debt issue costs and other | (197 | ) | (1,162 | ) | 347 | (40,384 | ) | (15,234 | ) | |||||||||||||||||
| Net cash provided by (used in) financing activities of continuing operations | $ | (137,758 | ) | $ | (84,550 | ) | $ | 51,890 | $ | (141,719 | ) | $ | (161,419 | ) | ||||||||||||
| Net cash provided by (used in) financing activities of discontinued operations | 92 | 805 | 72 | 493 | (124,759 | ) | ||||||||||||||||||||
| Net cash provided by (used in) financing activities | $ | (137,666 | ) | $ | (83,745 | ) | $ | 51,962 | $ | (141,226 | ) | $ | (286,178 | ) | ||||||||||||
| Net increase (decrease) in cash and cash equivalents | $ | (91,417 | ) | $ | (52,020 | ) | $ | 80,461 | $ | (10,544 | ) | $ | (11,402 | ) | ||||||||||||
| Cash and cash equivalents of continuing operations at beginning of period | $ | 121,244 | $ | 92,391 | $ | 40,783 | $ | 40,371 | $ | 41,204 | ||||||||||||||||
| Cash and cash equivalents of discontinued operations at beginning of period | — | — | — | — | 10,569 | |||||||||||||||||||||
| Cash and cash equivalents at beginning of period | $ | 121,244 | $ | 92,391 | $ | 40,783 | $ | 40,371 | $ | 51,773 | ||||||||||||||||
| Cash and cash equivalents at end of period | $ | 29,827 | $ | 40,371 | $ | 121,244 | $ | 29,827 | $ | 40,371 | ||||||||||||||||
| Less: cash and cash equivalents of discontinued operations at end of period | — | — | — | — | — | |||||||||||||||||||||
| Cash and cash equivalents of continuing operations at end of period | $ | 29,827 | $ | 40,371 | $ | 121,244 | $ | 29,827 | $ | 40,371 | ||||||||||||||||
| Supplemental cash flow information: | ||||||||||||||||||||||||||
| Cash paid during the period for interest from continuing operations | $ | 10,993 | $ | 29,631 | $ | 26,977 | $ | 72,850 | $ | 84,380 | ||||||||||||||||
| Cash paid during the period for interest from discontinued operations | $ | — | $ | — | $ | — | $ | — | $ | 1,906 | ||||||||||||||||
| Non-cash investing and financing activities: | ||||||||||||||||||||||||||
| Issuance of 2022 Senior Notes in exchange for 2018 Senior Notes | $ | — | $ | — | $ | — | $ | 240,638 | $ | — | ||||||||||||||||
| Plant, equipment and mineral rights funded with accounts payable or accrued liabilities | $ | 294 | $ | — | $ | — | $ | 294 | $ | — | ||||||||||||||||
|
Natural Resource Partners L.P. Financial Tables (Unaudited) |
||||||||||||
| Consolidated Balance Sheets | ||||||||||||
| December 31, | December 31, | |||||||||||
|
(In thousands, except unit data) |
2017 | 2016 | ||||||||||
| ASSETS | ||||||||||||
| Current assets: | ||||||||||||
| Cash and cash equivalents | $ | 29,827 | $ | 40,371 | ||||||||
| Accounts receivable, net | 47,026 | 43,202 | ||||||||||
| Accounts receivable—affiliates, net | 161 | 6,658 | ||||||||||
| Inventory | 7,553 | 6,893 | ||||||||||
| Prepaid expenses and other | 5,838 | 7,271 | ||||||||||
| Current assets of discontinued operations | 991 | 991 | ||||||||||
| Total current assets | $ | 91,396 | $ | 105,386 | ||||||||
| Land | 25,247 | 25,252 | ||||||||||
| Plant and equipment, net | 46,170 | 49,443 | ||||||||||
| Mineral rights, net | 883,885 | 908,192 | ||||||||||
| Intangible assets, net | 49,554 | 3,236 | ||||||||||
| Intangible assets, net—affiliate | — | 49,811 | ||||||||||
| Equity in unconsolidated investment | 245,433 | 255,901 | ||||||||||
| Long-term contracts receivable | 40,776 | — | ||||||||||
| Long-term contracts receivable—affiliate | — | 43,785 | ||||||||||
| Other assets | 6,547 | 6,625 | ||||||||||
| Other assets—affiliate | 156 | 1,018 | ||||||||||
| Total assets | $ | 1,389,164 | $ | 1,448,649 | ||||||||
| LIABILITIES AND CAPITAL | ||||||||||||
| Current liabilities: | ||||||||||||
| Accounts payable | $ | 6,957 | $ | 6,234 | ||||||||
| Accounts payable—affiliates | 562 | 940 | ||||||||||
| Accrued liabilities | 16,890 | 25,999 | ||||||||||
| Accrued liabilities—affiliates | 515 | — | ||||||||||
| Accrued interest | 15,484 | 15,588 | ||||||||||
| Current portion of long-term debt, net | 79,740 | 140,037 | ||||||||||
| Current liabilities of discontinued operations | 401 | 353 | ||||||||||
| Total current liabilities | $ | 120,549 | $ | 189,151 | ||||||||
| Deferred revenue | 100,605 | 44,931 | ||||||||||
| Deferred revenue—affiliates | — | 71,632 | ||||||||||
| Long-term debt, net | 729,608 | 990,234 | ||||||||||
| Other non-current liabilities | 2,808 | 4,565 | ||||||||||
| Other non-current liabilities—affiliate | 346 | — | ||||||||||
| Total liabilities | $ | 953,916 | $ | 1,300,513 | ||||||||
| Commitments and contingencies | ||||||||||||
| Class A Convertible Preferred Units (258,844 units issued and outstanding at $1,000 par value per unit; liquidation preference of $1,500 per unit) | $ | 173,431 | $ | — | ||||||||
| Partners’ capital: | ||||||||||||
| Common unitholders’ interest (12,232,006 units issued and outstanding) | $ | 199,851 | $ | 152,309 | ||||||||
| General partner’s interest | 1,857 | 887 | ||||||||||
| Warrant holders interest | 66,816 | — | ||||||||||
| Accumulated other comprehensive loss | (3,313 | ) | (1,666 | ) | ||||||||
| Total partners’ capital | $ | 265,211 | $ | 151,530 | ||||||||
| Non-controlling interest | (3,394 | ) | (3,394 | ) | ||||||||
| Total capital | 261,817 | 148,136 | ||||||||||
| Total liabilities and capital | $ | 1,389,164 | $ | 1,448,649 | ||||||||
|
Natural Resource Partners L.P. Financial Tables (Unaudited) |
||||||||||||||||||||||||||
|
The table below presents NRP's unaudited business results by segment for the three months ended December 31, 2017 and 2016 and September 30, 2017, respectively: |
||||||||||||||||||||||||||
| Operating Business Segments | ||||||||||||||||||||||||||
|
Coal |
Construction |
Corporate |
||||||||||||||||||||||||
|
(In thousands) |
Soda Ash | Total | ||||||||||||||||||||||||
| Three Months Ended December 31, 2017 | ||||||||||||||||||||||||||
| Revenues and other income | $ | 52,146 | $ | 12,781 | $ | 35,895 | $ | — | $ | 100,822 | ||||||||||||||||
| Gains on asset sales | 178 | — | 102 | — | 280 | |||||||||||||||||||||
| Total revenues and other income | $ | 52,324 | $ | 12,781 | $ | 35,997 | $ | — | $ | 101,102 | ||||||||||||||||
| Asset impairments | $ | 1,189 | $ | — | $ | 64 | $ | — | $ | 1,253 | ||||||||||||||||
| Net income (loss) from continuing operations | $ | 39,729 | $ | 12,781 | $ | 1,989 | $ | (23,758 | ) | $ | 30,741 | |||||||||||||||
| Adjusted EBITDA (1) | $ | 46,679 | $ | 12,250 | $ | 5,143 | $ | (4,696 | ) | $ | 59,376 | |||||||||||||||
| Net cash provided by (used in) operating activities of continuing operations | $ | 45,550 | $ | 12,250 | $ | 4,010 | $ | (15,366 | ) | $ | 46,444 | |||||||||||||||
| Net cash provided by (used in) investing activities of continuing operations | $ | 591 | $ | — | $ | (694 | ) | $ | — | $ | (103 | ) | ||||||||||||||
| Net cash provided by financing activities of continuing operations | $ | — | $ | — | $ | (197 | ) | $ | (137,561 | ) | $ | (137,758 | ) | |||||||||||||
| Distributable Cash Flow (1) | $ | 46,141 | $ | 12,250 | $ | 3,356 | $ | (15,366 | ) | $ | 46,381 | |||||||||||||||
| Three Months Ended December 31, 2016 | ||||||||||||||||||||||||||
| Revenues and other income | $ | 44,271 | $ | 9,319 | $ | 32,721 | $ | — | $ | 86,311 | ||||||||||||||||
| Gain on asset sales | 1,798 | — | 3 | — | 1,801 | |||||||||||||||||||||
| Total revenues and other income | $ | 46,069 | $ | 9,319 | $ | 32,724 | $ | — | $ | 88,112 | ||||||||||||||||
| Asset impairments | $ | 8,180 | $ | — | $ | 1,065 | $ | — | $ | 9,245 | ||||||||||||||||
| Net income (loss) from continuing operations | $ | 24,014 | $ | 9,319 | $ | 997 | $ | (30,519 | ) | $ | 3,811 | |||||||||||||||
| Adjusted EBITDA (1) | $ | 40,464 | $ | 12,250 | $ | 5,555 | $ | (7,253 | ) | $ | 51,016 | |||||||||||||||
| Net cash provided by (used in) operating activities of continuing operations | $ | 43,118 | $ | 12,250 | $ | 3,720 | $ | (32,992 | ) | $ | 26,096 | |||||||||||||||
| Net cash provided by (used in) investing activities of continuing operations | $ | 7,223 | $ | — | $ | (790 | ) | $ | — | $ | 6,433 | |||||||||||||||
| Net cash provided by (used in) financing activities of continuing operations | $ | 16 | $ | — | $ | (232 | ) | $ | (84,334 | ) | $ | (84,550 | ) | |||||||||||||
| Distributable Cash Flow (1) | $ | 50,341 | $ | 12,250 | $ | 3,132 | $ | (32,992 | ) | $ | 32,714 | |||||||||||||||
| 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 | |||||||||||||||
|
_____________ |
||||||||||||||||||||||||||
|
(1) See "Non-GAAP Financial Measures" and reconciliation tables at the end of this release. |
||||||||||||||||||||||||||
|
Natural Resource Partners L.P. Financial Tables |
||||||||||||||||||||||||||||||
|
The table below presents NRP's unaudited business results by segment for the year ended December 31, 2017 and 2016: |
||||||||||||||||||||||||||||||
| Operating Business Segments | ||||||||||||||||||||||||||||||
|
Coal |
Construction |
Corporate |
||||||||||||||||||||||||||||
|
(In thousands) |
Soda Ash | Total | ||||||||||||||||||||||||||||
| Year Ended December 31, 2017 | ||||||||||||||||||||||||||||||
| Revenues and other income | $ | 202,323 | $ | 40,457 | $ | 131,381 | $ | — | $ | 374,161 | ||||||||||||||||||||
| Gains on asset sales | 3,545 | — | 311 | — | 3,856 | |||||||||||||||||||||||||
| Total revenues and other income | $ | 205,868 | $ | 40,457 | $ | 131,692 | $ | — | $ | 378,017 | ||||||||||||||||||||
| Asset impairments | $ | 2,967 | $ | — | $ | 64 | $ | — | $ | 3,031 | ||||||||||||||||||||
| Net income (loss) from continuing operations | $ | 154,899 | $ | 40,457 | $ | 6,428 | $ | (112,576 | ) | $ | 89,208 | |||||||||||||||||||
| Adjusted EBITDA (1) | $ | 181,280 | $ | 49,000 | $ | 19,764 | $ | (18,502 | ) | $ | 231,542 | |||||||||||||||||||
| Net cash provided by (used in) operating activities of continuing operations | $ | 166,138 | $ | 43,354 | $ | 15,687 | $ | (97,341 | ) | $ | 127,838 | |||||||||||||||||||
| Net cash provided by (used in) investing activities of continuing operations | $ | 4,161 | $ | 5,646 | $ | (6,470 | ) | $ | — | $ | 3,337 | |||||||||||||||||||
| Net cash provided by (used in) financing activities of continuing operations | $ | 517 | $ | — | $ | (1,293 | ) | $ | (140,943 | ) | $ | (141,719 | ) | |||||||||||||||||
| Distributable Cash Flow (1) | $ | 170,299 | $ | 49,000 | $ | 10,183 | $ | (97,341 | ) | $ | 132,141 | |||||||||||||||||||
| Year Ended December 31, 2016 | ||||||||||||||||||||||||||||||
| Revenues and other income | $ | 210,115 | $ | 40,061 | $ | 120,802 | $ | — | $ | 370,978 | ||||||||||||||||||||
| Gains on asset sales | 29,068 | — | 13 | — | 29,081 | |||||||||||||||||||||||||
| Total revenues and other income | $ | 239,183 | $ | 40,061 | $ | 120,815 | $ | — | $ | 400,059 | ||||||||||||||||||||
| Asset impairments | $ | 15,861 | $ | — | $ | 1,065 | $ | — | $ | 16,926 | ||||||||||||||||||||
| Net income (loss) from continuing operations | $ | 161,816 | $ | 40,061 | $ | 4,438 | $ | (111,101 | ) | $ | 95,214 | |||||||||||||||||||
| Adjusted EBITDA (1) | $ | 209,443 | $ | 46,550 | $ | 20,009 | $ | (20,570 | ) | $ | 255,432 | |||||||||||||||||||
| Net cash provided by (used in) operating activities of continuing operations | $ | 134,490 | $ | 46,550 | $ | 20,400 | $ | (100,797 | ) | $ | 100,643 | |||||||||||||||||||
| Net cash provided by (used in) investing activities of continuing operations | $ | 65,057 | $ | — | $ | (5,114 | ) | $ | — | $ | 59,943 | |||||||||||||||||||
| Net cash used in financing activities of continuing operations | $ | 16 | $ | (7,229 | ) | $ | (1,825 | ) | $ | (152,381 | ) | $ | (161,419 | ) | ||||||||||||||||
| Distributable Cash Flow (1) | $ | 199,547 | $ | 46,550 | $ | 16,243 | $ | (100,797 | ) | $ | 271,415 | |||||||||||||||||||
|
_____________ |
||||||||||||||||||||||||||||||
|
(1) See "Non-GAAP Financial Measures" and reconciliation tables at the end of this release. |
||||||||||||||||||||||||||||||
|
Natural Resource Partners L.P. Financial Tables (Unaudited) |
||||||||||||||||||||||||
|
Operating Statistics - Coal Royalty and Other |
||||||||||||||||||||||||
| Three Months Ended | Year Ended | |||||||||||||||||||||||
| December 31, | September 30, | December 31, | ||||||||||||||||||||||
|
($ in thousands, except tons and per ton amounts) |
2017 | 2016 | 2017 | 2017 | 2016 | |||||||||||||||||||
| Coal production (tons) | ||||||||||||||||||||||||
|
Appalachia |
||||||||||||||||||||||||
|
Northern |
464 | 1,833 | 226 | 2,136 | 2,312 | |||||||||||||||||||
| Central | 3,542 | 3,176 | 3,596 | 14,735 | 13,222 | |||||||||||||||||||
| Southern | 535 | 575 | 468 | 2,256 | 2,776 | |||||||||||||||||||
| Total Appalachia | 4,541 | 5,584 | 4,290 | 19,127 | 18,310 | |||||||||||||||||||
| Illinois Basin | 828 | 2,060 | 794 | 4,373 | 8,116 | |||||||||||||||||||
| Northern Powder River Basin | 1,678 | 1,047 | 849 | 4,386 | 3,781 | |||||||||||||||||||
| Gulf Coast | — | 0.4 | — | — | 0.4 | |||||||||||||||||||
| Total coal production | 7,047 | 8,691 | 5,933 | 27,886 | 30,207 | |||||||||||||||||||
| Coal royalty revenue per ton | ||||||||||||||||||||||||
| Appalachia | ||||||||||||||||||||||||
|
Northern |
$ | 2.14 | $ | 0.36 | $ | 3.26 | $ | 1.53 | $ | 1.15 | ||||||||||||||
| Central | $ | 5.21 | $ | 4.97 | $ | 4.77 | $ | 5.12 | $ | 3.64 | ||||||||||||||
| Southern | $ | 5.90 | $ | 5.64 | $ | 5.73 | $ | 5.94 | $ | 3.84 | ||||||||||||||
| Illinois Basin | $ | 4.75 | $ | 3.92 | $ | 4.32 | $ | 3.88 | $ | 3.66 | ||||||||||||||
| Northern Powder River Basin | $ | 2.27 | $ | 2.22 | $ | 3.47 | $ | 2.65 | $ | 2.81 | ||||||||||||||
| Gulf Coast | $ | — | $ | 3.28 | $ | — | $ | — | $ | 3.28 | ||||||||||||||
| Combined average coal royalty revenue per ton | $ | 4.31 | $ | 3.46 | $ | 4.54 | $ | 4.33 | $ | 3.37 | ||||||||||||||
| Coal royalty revenues | ||||||||||||||||||||||||
| Appalachia | ||||||||||||||||||||||||
| Northern | $ | 992 | $ | 662 | $ | 737 | $ | 3,271 | $ | 2,667 | ||||||||||||||
| Central | 18,462 | 15,788 | 17,154 | 75,489 | 48,119 | |||||||||||||||||||
| Southern | 3,157 | 3,241 | 2,683 | 13,399 | 10,660 | |||||||||||||||||||
| Total Appalachia | $ | 22,611 | $ | 19,691 | $ | 20,574 | $ | 92,159 | $ | 61,446 | ||||||||||||||
| Illinois Basin | 3,934 | 8,069 | 3,431 | 16,989 | 29,680 | |||||||||||||||||||
| Northern Powder River Basin | 3,815 | 2,323 | 2,945 | 11,642 | 10,637 | |||||||||||||||||||
| Gulf Coast | — | 1 | — | — | 1 | |||||||||||||||||||
| Total coal royalty revenue | $ | 30,360 | $ | 30,084 | $ | 26,950 | $ | 120,790 | $ | 101,764 | ||||||||||||||
| Other revenues | ||||||||||||||||||||||||
| Minimums recognized as revenue | $ | 8,266 | $ | 4,136 | $ | 9,812 | $ | 30,822 | $ | 64,591 | ||||||||||||||
| Property tax revenue | 813 | 1,558 | 513 | 5,124 | 10,457 | |||||||||||||||||||
| Wheelage | 1,224 | 577 | 1,219 | 4,734 | 2,374 | |||||||||||||||||||
| Coal overriding royalty revenue | 4,067 | 799 | 3,059 | 9,836 | 2,281 | |||||||||||||||||||
| Lease assignment fee | — | — | 1,000 | 1,000 | — | |||||||||||||||||||
| Hard mineral royalty revenues | 728 | 969 | 817 | 4,241 | 3,163 | |||||||||||||||||||
| Oil and gas royalty revenues | 1,693 | 999 | 117 | 4,225 | 3,537 | |||||||||||||||||||
| Other | 202 | 1,476 | 356 | 1,029 | 2,612 | |||||||||||||||||||
| Total other revenues | $ | 16,993 | $ | 10,514 | $ | 16,893 | $ | 61,011 | $ | 89,015 | ||||||||||||||
| Coal royalty and other income | 47,353 | 40,598 | 43,843 | 181,801 | 190,779 | |||||||||||||||||||
| Transportation and processing fees | 4,793 | 3,673 | 5,570 | 20,522 | 19,336 | |||||||||||||||||||
| Gain on coal royalty and other segment asset sales | 178 | 1,798 | 154 | 3,545 | 29,068 | |||||||||||||||||||
| Total coal royalty and other segment revenues and other income | $ | 52,324 | $ | 46,069 | $ | 49,567 | $ | 205,868 | $ | 239,183 | ||||||||||||||
|
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 December 31, 2017 | |||||||||||||||||||||||||
| Net cash provided by (used in) operating activities of continuing operations | $ | 45,550 | $ | 12,250 | $ | 4,010 | $ | (15,366 | ) | $ | 46,444 | ||||||||||||||
| Add: return of equity from unconsolidated investment | — | — | — | — | — | ||||||||||||||||||||
| Add: proceeds from sale of assets | 192 | — | 371 | — | 563 | ||||||||||||||||||||
| Add: return of long-term contract receivable | 399 | — | — | — | 399 | ||||||||||||||||||||
| Less: maintenance capital expenditures | — | — | (1,025 | ) | — | (1,025 | ) | ||||||||||||||||||
| Distributable cash flow | $ | 46,141 | $ | 12,250 | $ | 3,356 | $ | (15,366 | ) | $ | 46,381 | ||||||||||||||
| Less: Proceeds from sale of assets | (192 | ) | — | (371 | ) | — | (563 | ) | |||||||||||||||||
| Distributable cash flow adjusted for proceeds from sale of assets | $ | 45,949 | $ | 12,250 | $ | 2,985 | $ | (15,366 | ) | $ | 45,818 | ||||||||||||||
| Three Months Ended December 31, 2016 | |||||||||||||||||||||||||
| Net cash provided by (used in) operating activities of continuing operations | $ | 43,118 | $ | 12,250 | $ | 3,720 | $ | (32,992 | ) | $ | 26,096 | ||||||||||||||
| Add: proceeds from sale of assets | 6,855 | — | 164 | — | 7,019 | ||||||||||||||||||||
| Add: proceeds from sale of assets from discontinued operations | — | — | — | — | (17 | ) | |||||||||||||||||||
| Add: return of long-term contract receivables—affiliate | 391 | — | — | — | 391 | ||||||||||||||||||||
| Less: maintenance capital expenditures | (23 | ) | — | (752 | ) | — | (775 | ) | |||||||||||||||||
| Distributable cash flow | $ | 50,341 | $ | 12,250 | $ | 3,132 | $ | (32,992 | ) | $ | 32,714 | ||||||||||||||
| Less: Proceeds from sale of assets, including discontinued operations | (6,855 | ) | — | (164 | ) | — | (7,002 | ) | |||||||||||||||||
| Distributable cash flow adjusted for proceeds from sale of assets | $ | 43,486 | $ | 12,250 | $ | 2,968 | $ | (32,992 | ) | $ | 25,712 | ||||||||||||||
| 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 of 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 | ||||||||||||||
| Less: 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 | ||||||||||||||
|
Natural Resource Partners L.P. Reconciliation of Non-GAAP Measures |
|||||||||||||||||||||||||
| Distributable Cash Flow | |||||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||||
|
Coal |
Construction |
Corporate |
|||||||||||||||||||||||
|
(In thousands) |
Soda Ash | Total | |||||||||||||||||||||||
| Year Ended December 31, 2017 | |||||||||||||||||||||||||
| Net cash provided by (used in) operating activities of continuing operations | $ | 166,138 | $ | 43,354 | $ | 15,687 | $ | (97,341 | ) | $ | 127,838 | ||||||||||||||
| Add: return of equity from unconsolidated investment | — | 5,646 | — | — | 5,646 | ||||||||||||||||||||
| Add: proceeds from the sale of assets | 1,151 | — | 831 | — | 1,982 | ||||||||||||||||||||
| Add: return of long-term contract receivables (including affiliate) | 3,010 | — | — | — | 3,010 | ||||||||||||||||||||
| Less: maintenance capital expenditures | — | — | (6,335 | ) | — | (6,335 | ) | ||||||||||||||||||
| Distributable cash flow | $ | 170,299 | $ | 49,000 | $ | 10,183 | $ | (97,341 | ) | $ | 132,141 | ||||||||||||||
| Less: Proceeds from sale of assets | (1,151 | ) | — | (831 | ) | — | (1,982 | ) | |||||||||||||||||
| Distributable cash flow adjusted for proceeds from sale of assets | $ | 169,148 | $ | 49,000 | $ | 9,352 | $ | (97,341 | ) | $ | 130,159 | ||||||||||||||
| Year Ended December 31, 2016 | |||||||||||||||||||||||||
| Net cash provided by (used in) operating activities of continuing operations | $ | 134,490 | $ | 46,550 | $ | 20,400 | $ | (100,797 | ) | $ | 100,643 | ||||||||||||||
| Add: Proceeds from the sale of assets | 62,117 | — | 266 | — | 62,383 | ||||||||||||||||||||
| Add: proceeds from sale of assets included in discontinued operations | — | — | — | — | 109,872 | ||||||||||||||||||||
| Add: return of long-term contract receivables—affiliate | 2,968 | — | — | — | 2,968 | ||||||||||||||||||||
| Less: maintenance capital expenditures | (28 | ) | — | (4,423 | ) | — | (4,451 | ) | |||||||||||||||||
| Distributable cash flow | $ | 199,547 | $ | 46,550 | $ | 16,243 | $ | (100,797 | ) | $ | 271,415 | ||||||||||||||
| Less: Proceeds from sale of assets, including discontinued operations | (62,117 | ) | — | (266 | ) | — | (172,255 | ) | |||||||||||||||||
| Distributable cash flow adjusted for proceeds from sale of assets | $ | 137,430 | $ | 46,550 | $ | 15,977 | $ | (100,797 | ) | $ | 99,160 | ||||||||||||||
|
Natural Resource Partners L.P. Reconciliation of Non-GAAP Measures |
|||||||||||||||||||||||||
| Adjusted EBITDA | |||||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||||
|
Coal |
Construction |
Corporate |
|||||||||||||||||||||||
|
(In thousands) |
Soda Ash | Total | |||||||||||||||||||||||
| Three Months Ended December 31, 2017 | |||||||||||||||||||||||||
| Net income (loss) from continuing operations | $ | 39,729 | $ | 12,781 | $ | 1,989 | $ | (23,758 | ) | $ | 30,741 | ||||||||||||||
| Less: equity earnings from unconsolidated investment | — | (12,781 | ) | — | — | (12,781 | ) | ||||||||||||||||||
| Add: distributions from unconsolidated investment | — | 12,250 | — | — | 12,250 | ||||||||||||||||||||
| Add: interest expense, net | — | — | 61 | 19,062 | 19,123 | ||||||||||||||||||||
| Add: debt modification expense | — | — | — | — | — | ||||||||||||||||||||
| Add: depreciation, depletion and amortization | 5,761 | — | 3,029 | — | 8,790 | ||||||||||||||||||||
| Add: asset impairments | 1,189 | — | 64 | — | 1,253 | ||||||||||||||||||||
| Adjusted EBITDA | $ | 46,679 | $ | 12,250 | $ | 5,143 | $ | (4,696 | ) | $ | 59,376 | ||||||||||||||
| Less: gains on sale of assets | (178 | ) | — | (102 | ) | — | (280 | ) | |||||||||||||||||
| Adjusted EBITDA excluding gains on sale of assets | $ | 46,501 | $ | 12,250 | $ | 5,041 | $ | (4,696 | ) | $ | 59,096 | ||||||||||||||
| Three Months Ended December 31, 2016 | |||||||||||||||||||||||||
| Net income (loss) from continuing operations | $ | 24,014 | $ | 9,319 | $ | 997 | $ | (30,519 | ) | $ | 3,811 | ||||||||||||||
| Less: equity earnings from unconsolidated investment | — | (9,319 | ) | — | — | (9,319 | ) | ||||||||||||||||||
| Add: distributions from unconsolidated investment | — | 12,250 | — | — | 12,250 | ||||||||||||||||||||
| Add: interest expense, net | — | — | — | 23,266 | 23,266 | ||||||||||||||||||||
| Add: depreciation, depletion and amortization | 8,270 | — | 3,493 | — | 11,763 | ||||||||||||||||||||
| Add: asset impairments | 8,180 | — | 1,065 | — | 9,245 | ||||||||||||||||||||
| Adjusted EBITDA | $ | 40,464 | $ | 12,250 | $ | 5,555 | $ | (7,253 | ) | $ | 51,016 | ||||||||||||||
| Less: gains on sale of assets | (1,798 | ) | — | (3 | ) | — | (1,801 | ) | |||||||||||||||||
| Adjusted EBITDA excluding gains on sale of assets | $ | 38,666 | $ | 12,250 | $ | 5,552 | $ | (7,253 | ) | $ | 49,215 | ||||||||||||||
| 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, net | — | — | 59 | 20,021 | 20,080 | ||||||||||||||||||||
| Add: depreciation, depletion and amortization | 5,305 | — | 3,001 | — | 8,306 | ||||||||||||||||||||
| Adjusted EBITDA | $ | 43,297 | $ | 12,250 | $ | 6,402 | $ | (3,807 | ) | $ | 58,142 | ||||||||||||||
| Less: 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 | ||||||||||||||
| Natural Resource Partners L.P. | ||||||||||||||||||||||||||||
| Reconciliation of Non-GAAP Measures | ||||||||||||||||||||||||||||
| Adjusted EBITDA | ||||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||||
|
Coal Royalty and Other |
Soda Ash |
Construction Aggregates |
Corporate and Financing |
Total | ||||||||||||||||||||||||
|
(In thousands) |
||||||||||||||||||||||||||||
| Year Ended December 31, 2017 | ||||||||||||||||||||||||||||
| Net income (loss) from continuing operations | 154,899 | $ | 40,457 | $ | 6,428 | $ | (112,576 | ) | $ | 89,208 | ||||||||||||||||||
| Less: equity earnings from unconsolidated investment | — | (40,457 | ) | — | — | (40,457 | ) | |||||||||||||||||||||
| Add: distributions from unconsolidated investment | — | 49,000 | — | — | 49,000 | |||||||||||||||||||||||
| Add: interest expense, net | — | — | 693 | 82,028 | 82,721 | |||||||||||||||||||||||
| Add: debt modification expense | — | — | — | 7,939 | 7,939 | |||||||||||||||||||||||
| Add: loss on extinguishment of debt | — | — | — | 4,107 | 4,107 | |||||||||||||||||||||||
| Add: depreciation, depletion and amortization | 23,414 | — | 12,579 | — | 35,993 | |||||||||||||||||||||||
| Add: asset impairments | 2,967 | — | 64 | — | 3,031 | |||||||||||||||||||||||
| Adjusted EBITDA | 181,280 | $ | 49,000 | $ | 19,764 | $ | (18,502 | ) | $ | 231,542 | ||||||||||||||||||
| Less: gains on sale of assets | (3,545 | ) | — | (311 | ) | — | (3,856 | ) | ||||||||||||||||||||
| Adjusted EBITDA excluding gains on sale of assets | 177,735 | $ | 49,000 | $ | 19,453 | $ | (18,502 | ) | $ | 227,686 | ||||||||||||||||||
| Year Ended December 31, 2016 | ||||||||||||||||||||||||||||
| Net income (loss) from continuing operations | $ | 161,816 | $ | 40,061 | $ | 4,438 | $ | (111,101 | ) | $ | 95,214 | |||||||||||||||||
| Less: equity earnings from unconsolidated investment | — | (40,061 | ) | — | — | (40,061 | ) | |||||||||||||||||||||
| Add: distributions from unconsolidated investment | — | 46,550 | — | — | 46,550 | |||||||||||||||||||||||
| Add: interest expense, net | — | — | — | 90,531 | 90,531 | |||||||||||||||||||||||
| Add: depreciation, depletion and amortization | 31,766 | — | 14,506 | — | 46,272 | |||||||||||||||||||||||
| Add: asset impairments | 15,861 | — | 1,065 | — | 16,926 | |||||||||||||||||||||||
| Adjusted EBITDA | $ | 209,443 | $ | 46,550 | $ | 20,009 | $ | (20,570 | ) | $ | 255,432 | |||||||||||||||||
| Less: Gains on sale of assets | (29,068 | ) | — | (13 | ) | — | (29,081 | ) | ||||||||||||||||||||
| Adjusted EBITDA excluding gains on sale of assets | $ | 180,375 | $ | 46,550 | $ | 19,996 | $ | (20,570 | ) | $ | 226,351 | |||||||||||||||||
| Natural Resource Partners L.P. | |||||||||||||||||||||||||||||||
| Reconciliation of Non-GAAP Measures | |||||||||||||||||||||||||||||||
| Adjusted Net Income | |||||||||||||||||||||||||||||||
|
(Unaudited) |
|||||||||||||||||||||||||||||||
| Three Months Ended | Year Ended | ||||||||||||||||||||||||||||||
| December 31, | September 30, | December 31, | |||||||||||||||||||||||||||||
|
(In thousands) |
2017 | 2016 | 2017 | 2017 | 2016 | ||||||||||||||||||||||||||
| Net income | $ | 30,707 | $ | 3,488 | $ | 26,066 | $ | 88,667 | $ | 96,892 | |||||||||||||||||||||
| Less: income attributable to preferred unitholders | (7,765 | ) | — | (7,650 | ) | (25,453 | ) | — | |||||||||||||||||||||||
| Net income attributable to common unitholders and general partner | $ | 22,942 | $ | 3,488 | $ | 18,416 | $ | 63,214 | $ | 96,892 | |||||||||||||||||||||
| Add: asset impairments | 1,253 | 9,245 | — | 3,031 | 16,926 | ||||||||||||||||||||||||||
| Add: loss (income) from discontinued operations | 34 | 323 | 433 | 541 | (1,678 | ) | |||||||||||||||||||||||||
| Add: debt modification expense | — | — | — | 7,939 | — | ||||||||||||||||||||||||||
| Add: loss on extinguishment of debt | — | — | — | 4,107 | — | ||||||||||||||||||||||||||
|
Add: restructuring-related incentive compensation expense |
— | 3,713 | — | 3,822 | 3,713 | ||||||||||||||||||||||||||
| Less: gain on asset sales | (280 | ) | (1,801 | ) | (171 | ) | (3,856 | ) | (29,081 | ) | |||||||||||||||||||||
|
Less: non-cash revenue associated with lease modifications and terminations |
— | (45 | ) | (2,142 | ) | (3,405 | ) | (40,460 | ) | ||||||||||||||||||||||
| Adjusted net income | $ | 23,949 | $ | 14,923 | $ | 16,536 | $ | 75,393 | $ | 46,312 | |||||||||||||||||||||
|
Adjusted Coal Royalty and Other Operating Income (Unaudited) |
|||||||||||||||||||||||||||||||
| Three Months Ended | Year Ended | ||||||||||||||||||||||||||||||
| December 31, | September 30, | December 31, | |||||||||||||||||||||||||||||
|
(In thousands) |
2017 | 2016 | 2017 | 2017 | 2016 | ||||||||||||||||||||||||||
| Coal royalty and other operating income | $ | 39,729 | $ | 24,014 | $ | 37,992 | $ | 154,899 | $ | 161,816 | |||||||||||||||||||||
| Add: asset impairments | 1,189 | 8,180 | — | 2,967 | 15,861 | ||||||||||||||||||||||||||
| Less: gain on asset sales | (178 | ) | (1,798 | ) | (154 | ) | (3,545 | ) | (29,068 | ) | |||||||||||||||||||||
|
Less: non-cash revenue associated with lease modifications and terminations |
— | (45 | ) | (2,142 | ) | (3,405 | ) | (40,460 | ) | ||||||||||||||||||||||
| Adjusted coal royalty and other operating income | $ | 40,740 | $ | 30,351 | $ | 35,696 | $ | 150,916 | $ | 108,149 | |||||||||||||||||||||
|
Natural Resource Partners L.P. Recap of Metrics (Unaudited) |
|||||
|
(In thousands, except units, prices, ratio and yields) |
February 27, 2018 | ||||
| Common Unit price | $ | 28.35 | |||
| Enterprise value | |||||
| Equity market cap | $ | 346,777 | |||
| Debt—at December 31, 2017 | 827,844 | ||||
| Preferred Units | 250,000 | ||||
| Intrinsic Value of Warrants | 9,695 | ||||
| Total enterprise value | $ | 1,434,316 | |||
|
Adjusted EBITDA—Year-ended December 31, 2017 |
$ | 231,542 | |||
| Enterprise Value-to-Adjusted EBITDA | 6.19 | x | |||
| Leverage Ratio (1) | 3.58 | x | |||
|
Distributable cash flow ("DCF")—Year-ended December 31, 2017 |
132,141 | ||||
|
Less: 12% annual coupon on Preferred Units |
(30,000 | ) | |||
| Adjusted DCF | 102,141 | ||||
| Distribution Coverage Ratio (2) | 5.9 | x | |||
| Adjusted Distribution Coverage Ratio (3) | 4.5 | x | |||
| Equity Value-to-Adjusted DCF | 3.4 | x | |||
|
_____________ |
||
| (1) |
Leverage Ratio is calculated as year-ended 2017 Adjusted EBITDA divided by the outstanding principal value of our debt as of December 31, 2017. |
|
| (2) | Distribution Coverage Ratio is calculated as DCF divided by annual common unit distributions times number of common units and general partner units outstanding. | |
| (3) | Adjusted Distribution Coverage Ratio is calculated as Adjusted DCF divided by annual common unit distributions times number of common units and general partner units outstanding. | |
