HOUSTON--(BUSINESS WIRE)--Natural Resource Partners L.P. (NYSE:NRP) today reported third quarter 2019 results as follows:
|
|
Three Months Ended |
|
Last Twelve
|
||||||||
|
|
September 30, |
|
September 30, |
||||||||
(In thousands) (Unaudited) |
|
2019 |
|
|
2018 |
|
2019 |
|||||
Net income from continuing operations |
|
$ |
39,163 |
|
|
$ |
25,853 |
|
|
$ |
129,126 |
|
Adjusted EBITDA (1) |
|
46,014 |
|
|
52,007 |
|
|
234,190 |
|
|||
Cash flow provided by (used in) continuing operations: |
|
|
|
|
|
|
||||||
Operating activities |
|
41,734 |
|
|
26,486 |
|
198,414 |
|||||
Investing activities |
|
6,567 |
|
|
1,590 |
|
|
10,040 |
|
|||
Financing activities |
|
(21,913 |
) |
|
(20,798 |
) |
|
(154,898 |
) |
|||
Distributable cash flow (1) |
|
48,179 |
|
|
28,076 |
|
|
405,989 |
|
|||
Free cash flow (1) |
|
42,193 |
|
|
28,076 |
|
|
200,220 |
|
|||
Cash flow cushion (last twelve months) (1) |
|
|
|
|
|
39,619 |
|
|||||
| _________________________ | |
(1) |
See "Non-GAAP Financial Measures" and reconciliation tables at the end of this release. |
"We posted a solid quarter of financial results despite challenging coal markets," said Craig Nunez, NRP's President and Chief Operating Officer. "We continue to generate significant free cash flow, maintain robust liquidity and remain focused on de-levering and de-risking the Partnership.”
NRP's liquidity was $212.2 million at September 30, 2019, consisting of $99.6 million of cash, $12.5 million of cash restricted for debt repayment and $100.0 million of borrowing capacity available under its revolving credit facility. At September 30, 2019, NRP's consolidated Debt-to-Adjusted EBITDA ratio, excluding the one-time beneficial Hillsboro settlement in the fourth quarter of 2018, was 2.6x.
NRP declared a cash distribution of $0.45 per common unit and a cash distribution of $7.5 million on its preferred units for the third quarter of 2019.
Third Quarter Segment Results
|
|
Operating Business Segments |
|
|
|
|
||||||||||
|
|
Coal Royalty
|
|
Soda Ash |
|
Corporate
|
|
Total |
||||||||
(In thousands) (Unaudited) |
|
|
|
|
||||||||||||
Three Months Ended September 30, 2019 |
|
|
|
|
|
|
|
|
||||||||
Net income (loss) from continuing operations |
|
$ |
40,252 |
|
|
$ |
13,595 |
|
|
$ |
(14,684 |
) |
|
$ |
39,163 |
|
Adjusted EBITDA (1) |
|
44,120 |
|
|
6,147 |
|
|
(4,253 |
) |
|
46,014 |
|
||||
Cash flow provided by (used in) continuing operations: |
|
|
|
|
|
|
|
|
||||||||
Operating activities |
|
41,094 |
|
|
6,147 |
|
|
(5,507 |
) |
|
41,734 |
|
||||
Investing activities |
|
6,567 |
|
|
— |
|
|
— |
|
|
6,567 |
|
||||
Financing activities |
|
— |
|
|
— |
|
|
(21,913 |
) |
|
(21,913 |
) |
||||
Distributable cash flow (1) (2) |
|
47,661 |
|
|
6,147 |
|
|
(5,507 |
) |
|
48,179 |
|
||||
Free cash flow (1) |
|
41,553 |
|
|
6,147 |
|
|
(5,507 |
) |
|
42,193 |
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Three Months Ended September 30, 2018 |
|
|
|
|
|
|
|
|
||||||||
Net income (loss) from continuing operations |
|
$ |
37,693 |
|
|
$ |
8,836 |
|
|
$ |
(20,676 |
) |
|
$ |
25,853 |
|
Adjusted EBITDA (1) |
|
42,940 |
|
|
12,250 |
|
|
(3,183 |
) |
|
52,007 |
|
||||
Cash flow provided by (used in) continuing operations: |
|
|
|
|
|
|
|
|
||||||||
Operating activities |
|
41,604 |
|
|
12,250 |
|
|
(27,368 |
) |
|
26,486 |
|
||||
Investing activities |
|
1,590 |
|
|
— |
|
|
— |
|
|
1,590 |
|
||||
Financing activities |
|
— |
|
|
— |
|
|
(20,798 |
) |
|
(20,798 |
) |
||||
Distributable cash flow (1) |
|
43,194 |
|
|
12,250 |
|
|
(27,368 |
) |
|
28,076 |
|
||||
Free cash flow (1) |
|
43,194 |
|
|
12,250 |
|
|
(27,368 |
) |
|
28,076 |
|
||||
| _________________________ | |
(1) |
See "Non-GAAP Financial Measures" and reconciliation tables at the end of this release. |
(2) |
Includes adjustments of net proceeds from the sale of the construction aggregates business which are classified as investing cash flow from discontinued operations. |
Coal Royalty and Other
Overall results in the third quarter of 2019 were relatively flat compared to the prior year quarter as increases in certain areas were offset by reduced coal royalty realizations at certain properties as follows:
-
Increased performance from:
- $6.1 million of gain on asset sales and disposals.
- $3.4 million of increased minimum lease straight-line revenues primarily related to the Hillsboro property that NRP began to recognize in 2019 after completion of the Hillsboro litigation settlement with Foresight.
- $1.5 million of increased lease amendment revenues during the third quarter of 2019.
-
Offset by decreased performance from:
- $6.0 million of lower coal royalty revenues driven by weakened coal markets, the temporary idling of certain properties due to lessee bankruptcies and the idling of the Pinnacle mine since the fourth quarter of 2018.
- $3.0 million of lower transportation and processing services revenues due to weakened demand for Illinois Basin coal.
The market for metallurgical coal weakened primarily due to a decline in global economic growth. The domestic market for thermal coal remained challenged by continued low natural gas prices and growing stockpiles at domestic utilities. In addition, the export market for thermal coal weakened due to a combination of lower demand from European utilities, competition from international producers and oversupply of LNG.
Approximately 60% of coal royalty revenues and approximately 55% of coal royalty sales volumes were derived from metallurgical coal during the three months ended September 30, 2019.
Soda Ash
Net income increased $4.8 million compared to the prior year quarter driven primarily by increased production and sales volumes and increased domestic and international sales prices.
Adjusted EBITDA, distributable cash flow and free cash flow decreased $6.1 million due to Ciner Wyoming's distribution reduction in order to fund a capacity expansion project that is expected to improve performance of that business over the long term resulting in increased cash distributions to NRP. NRP expects to receive approximately $25 million to $28 million of annual cash distributions from Ciner Wyoming for the next two to three years.
Corporate and Financing
Net loss decreased $6.0 million primarily due to lower interest expense as a result of debt repayment.
Distributable cash flow and free cash flow increased $21.9 million primarily due to the timing of interest payments on our 2022 Senior Notes in 2018 compared to the timing of interest payments on our 2025 Senior Notes in 2019, in addition to lower interest payments on our Opco Senior Notes as a result of lower debt balances during the third quarter of 2019.
Business Outlook
Despite solid operating performance and strong liquidity, declining coal prices, lessee bankruptcies, and the distribution reduction at the Partnership's Ciner Wyoming soda ash joint venture announced earlier in the year are expected to put downward pressure on NRP's performance in the coming months. The Partnership expects all key performance metrics, including net income, free cash flow and cash flow cushion to be negatively impacted. However, management believes the progress made to strengthen the financial profile in recent years positions the Partnership well to operate through a sustained downturn and continue to reduce debt and make distributions to its unitholders.
Conference Call
A conference call will be held today at 10:00 a.m. ET. To join the conference call, dial (844) 583-4546 and provide the conference ID 9089977. Investors may also listen to the call via the Investor Relations section of the NRP website at www.nrplp.com. To access the replay, please 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, manages and leases a diversified portfolio of mineral properties in the United States including interests in coal, industrial minerals and other natural resources. In addition, NRP owns an equity investment in Ciner Wyoming LLC, a trona ore mining and soda ash production business.
For additional information, please contact Tiffany Sammis at 713-751-7515 or tsammis@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, among other things, statements regarding: the Partnership's business strategy; its liquidity and access to capital and financing sources; its financial strategy; prices of and demand for coal, trona and soda ash, and other natural resources; estimated revenues, expenses and results of operations; projected production levels by the Partnership's lessees; Ciner Wyoming LLC’s trona mining and soda ash refinery operations; distributions from the soda ash joint venture; the impact of governmental policies, laws and regulations, as well as regulatory and legal proceedings involving the Partnership, and of scheduled or potential regulatory or legal changes; global and U.S. economic conditions; 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, plus (minus) net loss (income) attributable to non-controlling interest; plus gain on reserve swap, total 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.
“Distributable cash flow” or "DCF" is a non-GAAP financial measure that we define as net cash provided by (used in) operating activities of continuing operations plus distributions from unconsolidated investment in excess of cumulative earnings, proceeds from asset sales and disposals, including sales of discontinued operations, and return of long-term contract receivable; 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, distributable cash flow 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. Distributable cash flow 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 our ability to make cash distributions and repay debt.
“Free cash flow” or "FCF" is a non-GAAP financial measure that we define as net cash provided by (used in) operating activities of continuing operations plus distributions from unconsolidated investment in excess of cumulative earnings and return of long-term contract receivable; less maintenance and expansion capital expenditures, cash flow used in acquisition costs classified as financing activities and distributions to non-controlling interest. FCF is calculated before mandatory debt repayments. Free cash flow is not a measure of financial performance under GAAP and should not be considered as an alternative to cash flows from operating, investing or financing activities. Free cash flow may not be calculated the same for us as for other companies. Free cash flow 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 our ability to make cash distributions and repay debt.
“Free cash flow excluding discontinued operations and one-time beneficial items” is a non-GAAP financial measure that we define as free cash flow excluding discontinued operations and one-time beneficial items. Free cash flow excluding discontinued operations and one-time beneficial items 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. Free cash flow excluding discontinued operations and one-time beneficial items may not be calculated the same for us as for other companies. Free cash flow excluding discontinued operations and one-time beneficial items is a supplemental liquidity measure used by our management to assess our ability to make cash distributions and repay debt.
"Cash flow cushion" is a non-GAAP financial measure that we define as free cash flow less one-time beneficial items, mandatory Opco debt repayments, preferred unit distributions and common unit distributions. Cash flow cushion 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. Cash flow cushion is a supplemental liquidity measure used by our management to assess the Partnership's ability to make or raise cash distributions to our common and preferred unitholders and our general partner and repay debt or redeem preferred units.
"Return on capital employed" or "ROCE" is a non-GAAP financial measure that we define as net income from continuing operations plus financing costs (interest expense plus loss on extinguishment of debt) divided by the sum of equity excluding equity of discontinued operations, and debt. Return on capital employed 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. Return on capital employed is a supplemental performance measure used by our management team that measures our profitability and efficiency with which our capital is employed. The measure provides an indication of operating performance before the impact of leverage in the capital structure.
"Return on capital employed excluding discontinued operations and one-time beneficial items" is a non-GAAP financial measure that we define as return on capital employed excluding one-time beneficial items. Return on capital employed excluding discontinued operations and one-time beneficial items 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. Return on capital employed excluding discontinued operations and one-time beneficial items is a supplemental performance measure used by our management team that measures our profitability and efficiency with which our capital is employed excluding the impact of one-time beneficial items. The measure provides an indication of operating performance before the impact of leverage in the capital structure and excluding the impact of one-time beneficial items.
-Financial Tables and Reconciliation of Non-GAAP Measures Follow-
Natural Resource Partners L.P. Financial Tables (Unaudited)
|
|||||||||||||||||||
Consolidated Statements of Comprehensive Income |
|||||||||||||||||||
|
|||||||||||||||||||
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||||||
|
September 30, |
|
June 30, |
|
September 30, |
||||||||||||||
(In thousands, except per unit data) |
2019 |
|
2018 |
|
2019 |
|
2019 |
|
2018 |
||||||||||
Revenues and other income |
|
|
|
|
|
|
|
|
|
||||||||||
Coal royalty and other |
$ |
39,919 |
|
|
$ |
42,518 |
|
|
$ |
64,616 |
|
|
$ |
154,037 |
|
|
$ |
134,912 |
|
Transportation and processing services |
3,865 |
|
|
6,853 |
|
|
5,274 |
|
|
14,740 |
|
|
17,238 |
|
|||||
Equity in earnings of Ciner Wyoming |
13,818 |
|
|
8,836 |
|
|
11,333 |
|
|
36,833 |
|
|
34,986 |
|
|||||
Gain on asset sales and disposals |
6,107 |
|
|
— |
|
|
246 |
|
|
6,609 |
|
|
819 |
|
|||||
Total revenues and other income |
$ |
63,709 |
|
|
$ |
58,207 |
|
|
$ |
81,469 |
|
|
$ |
212,219 |
|
|
$ |
187,955 |
|
Operating expenses |
|
|
|
|
|
|
|
|
|
||||||||||
Operating and maintenance expenses |
$ |
5,994 |
|
|
$ |
6,790 |
|
|
$ |
12,459 |
|
|
$ |
26,813 |
|
|
$ |
21,122 |
|
Depreciation, depletion and amortization |
3,384 |
|
|
4,888 |
|
|
3,970 |
|
|
11,746 |
|
|
15,364 |
|
|||||
General and administrative expenses |
4,253 |
|
|
3,183 |
|
|
4,196 |
|
|
12,799 |
|
|
10,782 |
|
|||||
Asset impairments |
484 |
|
|
— |
|
|
— |
|
|
484 |
|
|
242 |
|
|||||
Total operating expenses |
$ |
14,115 |
|
|
$ |
14,861 |
|
|
$ |
20,625 |
|
|
$ |
51,842 |
|
|
$ |
47,510 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income from operations |
$ |
49,594 |
|
|
$ |
43,346 |
|
|
$ |
60,844 |
|
|
$ |
160,377 |
|
|
$ |
140,445 |
|
Other expenses, net |
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense, net |
$ |
(10,431 |
) |
|
$ |
(17,493 |
) |
|
$ |
(12,456 |
) |
|
$ |
(37,061 |
) |
|
$ |
(53,177 |
) |
Loss on extinguishment of debt |
— |
|
|
— |
|
|
(29,282 |
) |
|
(29,282 |
) |
|
— |
|
|||||
Total other expenses, net |
$ |
(10,431 |
) |
|
$ |
(17,493 |
) |
|
$ |
(41,738 |
) |
|
$ |
(66,343 |
) |
|
$ |
(53,177 |
) |
Net income from continuing operations |
$ |
39,163 |
|
|
$ |
25,853 |
|
|
$ |
19,106 |
|
|
$ |
94,034 |
|
|
$ |
87,268 |
|
Income from discontinued operations |
7 |
|
|
2,688 |
|
|
245 |
|
|
206 |
|
|
3,721 |
|
|||||
Net income |
$ |
39,170 |
|
|
$ |
28,541 |
|
|
$ |
19,351 |
|
|
$ |
94,240 |
|
|
$ |
90,989 |
|
Net loss (income) attributable to non-controlling interest |
— |
|
|
359 |
|
|
— |
|
|
— |
|
|
(510 |
) |
|||||
Net income attributable to NRP |
$ |
39,170 |
|
|
$ |
28,900 |
|
|
$ |
19,351 |
|
|
$ |
94,240 |
|
|
$ |
90,479 |
|
Less: income attributable to preferred unitholders |
(7,500 |
) |
|
(7,500 |
) |
|
(7,500 |
) |
|
(22,500 |
) |
|
(22,500 |
) |
|||||
Net income attributable to common unitholders and general partner |
$ |
31,670 |
|
|
$ |
21,400 |
|
|
$ |
11,851 |
|
|
$ |
71,740 |
|
|
$ |
67,979 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income attributable to common unitholders |
$ |
31,036 |
|
|
$ |
20,972 |
|
|
$ |
11,614 |
|
|
$ |
70,305 |
|
|
$ |
66,619 |
|
Net income attributable to the general partner |
634 |
|
|
428 |
|
|
237 |
|
|
1,435 |
|
|
1,360 |
|
|||||
Income from continuing operations per common unit |
|
|
|
|
|
|
|
|
|
||||||||||
Basic |
$ |
2.53 |
|
|
$ |
1.50 |
|
|
$ |
0.93 |
|
|
$ |
5.72 |
|
|
$ |
5.14 |
|
Diluted |
1.66 |
|
|
1.18 |
|
|
0.85 |
|
|
3.91 |
|
|
3.89 |
|
|||||
Net income per common unit |
|
|
|
|
|
|
|
|
|
||||||||||
Basic |
$ |
2.53 |
|
|
$ |
1.71 |
|
|
$ |
0.95 |
|
|
$ |
5.73 |
|
|
$ |
5.44 |
|
Diluted |
1.66 |
|
|
1.30 |
|
|
0.87 |
|
|
3.92 |
|
|
4.06 |
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income |
$ |
39,170 |
|
|
$ |
28,541 |
|
|
$ |
19,351 |
|
|
$ |
94,240 |
|
|
$ |
90,989 |
|
Comprehensive income (loss) from unconsolidated investment and other |
(520 |
) |
|
791 |
|
|
(825 |
) |
|
(340 |
) |
|
(768 |
) |
|||||
Comprehensive income |
$ |
38,650 |
|
|
$ |
29,332 |
|
|
$ |
18,526 |
|
|
$ |
93,900 |
|
|
$ |
90,221 |
|
Comprehensive loss (income) attributable to non-controlling interest |
— |
|
|
359 |
|
|
— |
|
|
— |
|
|
(510 |
) |
|||||
Comprehensive income attributable to NRP |
$ |
38,650 |
|
|
$ |
29,691 |
|
|
$ |
18,526 |
|
|
$ |
93,900 |
|
|
$ |
89,711 |
|
Natural Resource Partners L.P. Financial Tables (Unaudited)
|
|||||||||||||||||||
Consolidated Statements of Cash Flows |
|||||||||||||||||||
|
|
|
|
||||||||||||||||
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||||||
|
September 30, |
|
June 30, |
|
September 30, |
||||||||||||||
(In thousands) |
2019 |
|
2018 |
|
2019 |
|
2019 |
|
2018 |
||||||||||
Cash flows from operating activities |
|
|
|
|
|
|
|
|
|
||||||||||
Net income |
$ |
39,170 |
|
|
$ |
28,541 |
|
|
$ |
19,351 |
|
|
$ |
94,240 |
|
|
$ |
90,989 |
|
Adjustments to reconcile net income to net cash provided by operating activities of continuing operations: |
|
|
|
|
|
|
|
|
|
||||||||||
Depreciation, depletion and amortization |
3,384 |
|
|
4,888 |
|
|
3,970 |
|
|
11,746 |
|
|
15,364 |
|
|||||
Distributions from unconsolidated investment |
6,370 |
|
|
12,250 |
|
|
9,310 |
|
|
25,480 |
|
|
34,653 |
|
|||||
Equity earnings from unconsolidated investment |
(13,818 |
) |
|
(8,836 |
) |
|
(11,333 |
) |
|
(36,833 |
) |
|
(34,986 |
) |
|||||
Gain on asset sales and disposals |
(6,107 |
) |
|
— |
|
|
(246 |
) |
|
(6,609 |
) |
|
(819 |
) |
|||||
Loss on extinguishment of debt |
— |
|
|
— |
|
|
29,282 |
|
|
29,282 |
|
|
— |
|
|||||
Income from discontinued operations |
(7 |
) |
|
(2,688 |
) |
|
(245 |
) |
|
(206 |
) |
|
(3,721 |
) |
|||||
Asset impairments |
484 |
|
|
— |
|
|
— |
|
|
484 |
|
|
242 |
|
|||||
Unit-based compensation expense |
466 |
|
|
154 |
|
|
475 |
|
|
1,842 |
|
|
1,144 |
|
|||||
Amortization of debt issuance costs and other |
1,072 |
|
|
1,206 |
|
|
355 |
|
|
3,223 |
|
|
4,021 |
|
|||||
Change in operating assets and liabilities: |
|
|
|
|
|
|
|
|
|
||||||||||
Accounts receivable |
1,147 |
|
|
760 |
|
|
8,511 |
|
|
4,731 |
|
|
(6,283 |
) |
|||||
Accounts payable |
355 |
|
|
(773 |
) |
|
(561 |
) |
|
(822 |
) |
|
90 |
|
|||||
Accrued liabilities |
439 |
|
|
94 |
|
|
642 |
|
|
(5,083 |
) |
|
(3,193 |
) |
|||||
Accrued interest |
7,163 |
|
|
(9,069 |
) |
|
2,889 |
|
|
19 |
|
|
(9,944 |
) |
|||||
Deferred revenue |
(1,236 |
) |
|
194 |
|
|
(7,218 |
) |
|
(3,920 |
) |
|
9,200 |
|
|||||
Other items, net |
2,852 |
|
|
(235 |
) |
|
(1,823 |
) |
|
351 |
|
|
1,036 |
|
|||||
Net cash provided by operating activities of continuing operations |
$ |
41,734 |
|
|
$ |
26,486 |
|
|
$ |
53,359 |
|
|
$ |
117,925 |
|
|
$ |
97,793 |
|
Net cash provided by (used in) operating activities of discontinued operations |
(359 |
) |
|
6,919 |
|
|
234 |
|
|
(4 |
) |
|
9,755 |
|
|||||
Net cash provided by operating activities |
$ |
41,375 |
|
|
$ |
33,405 |
|
|
$ |
53,593 |
|
|
$ |
117,921 |
|
|
$ |
107,548 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash flows from investing activities |
|
|
|
|
|
|
|
|
|
||||||||||
Distributions from unconsolidated investment in excess of cumulative earnings |
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
2,097 |
|
Proceeds from asset sales and disposals |
6,108 |
|
|
— |
|
|
247 |
|
|
6,611 |
|
|
826 |
|
|||||
Return of long-term contract receivable |
459 |
|
|
1,590 |
|
|
451 |
|
|
1,351 |
|
|
2,606 |
|
|||||
Net cash provided by investing activities of continuing operations |
$ |
6,567 |
|
|
$ |
1,590 |
|
|
$ |
698 |
|
|
$ |
7,962 |
|
|
$ |
5,529 |
|
Net cash provided by (used in) investing activities of discontinued operations |
(122 |
) |
|
(3,571 |
) |
|
(44 |
) |
|
(556 |
) |
|
(9,343 |
) |
|||||
Net cash provided by (used in) investing activities |
$ |
6,445 |
|
|
$ |
(1,981 |
) |
|
$ |
654 |
|
|
$ |
7,406 |
|
|
$ |
(3,814 |
) |
Cash flows from financing activities |
|
|
|
|
|
|
|
|
|
||||||||||
Debt borrowings |
— |
|
|
— |
|
|
300,000 |
|
|
300,000 |
|
|
35,000 |
|
|||||
Debt repayments |
(8,277 |
) |
|
(7,648 |
) |
|
(348,002 |
) |
|
(442,747 |
) |
|
(55,720 |
) |
|||||
Redemption of preferred units paid-in-kind |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(8,844 |
) |
|||||
Distributions to common unitholders and general partner |
(5,630 |
) |
|
(5,623 |
) |
|
(16,265 |
) |
|
(27,520 |
) |
|
(16,863 |
) |
|||||
Distributions to preferred unitholders |
(7,500 |
) |
|
(7,500 |
) |
|
(7,500 |
) |
|
(22,500 |
) |
|
(22,765 |
) |
|||||
Contributions from (to) discontinued operations |
(481 |
) |
|
(25 |
) |
|
190 |
|
|
(560 |
) |
|
(2,275 |
) |
|||||
Debt issuance costs and other |
(25 |
) |
|
(2 |
) |
|
(26,412 |
) |
|
(26,427 |
) |
|
(228 |
) |
|||||
Net cash used in financing activities of continuing operations |
$ |
(21,913 |
) |
|
$ |
(20,798 |
) |
|
$ |
(97,989 |
) |
|
$ |
(219,754 |
) |
|
$ |
(71,695 |
) |
Net cash provided by (used in) financing activities of discontinued operations |
481 |
|
|
(214 |
) |
|
(190 |
) |
|
560 |
|
|
1,521 |
|
|||||
Net cash used in financing activities |
$ |
(21,432 |
) |
|
$ |
(21,012 |
) |
|
$ |
(98,179 |
) |
|
$ |
(219,194 |
) |
|
$ |
(70,174 |
) |
|
|
|
|
|
|
|
|
|
|
||||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash |
$ |
26,388 |
|
|
$ |
10,412 |
|
|
$ |
(43,932 |
) |
|
$ |
(93,867 |
) |
|
$ |
33,560 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash, cash equivalents and restricted cash of continuing operations at beginning of period |
$ |
85,775 |
|
|
$ |
51,329 |
|
|
$ |
129,707 |
|
|
$ |
206,030 |
|
|
$ |
26,980 |
|
Cash and cash equivalents of discontinued operations at beginning of period |
— |
|
|
1,646 |
|
|
— |
|
|
— |
|
|
2,847 |
|
|||||
Cash, cash equivalents and restricted cash at beginning of period |
$ |
85,775 |
|
|
$ |
52,975 |
|
|
$ |
129,707 |
|
|
$ |
206,030 |
|
|
$ |
29,827 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash, cash equivalents and restricted cash at end of period |
$ |
112,163 |
|
|
$ |
63,387 |
|
|
$ |
85,775 |
|
|
$ |
112,163 |
|
|
$ |
63,387 |
|
Less: cash and cash equivalents of discontinued operations at end of period |
— |
|
|
(4,780 |
) |
|
— |
|
|
— |
|
|
(4,780 |
) |
|||||
Cash, cash equivalents and restricted cash of continuing operations at end of period |
$ |
112,163 |
|
|
$ |
58,607 |
|
|
$ |
85,775 |
|
|
$ |
112,163 |
|
|
$ |
58,607 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Supplemental cash flow information: |
|
|
|
|
|
|
|
|
|
||||||||||
Cash paid during the period for interest of continuing operations |
$ |
3,225 |
|
|
$ |
24,998 |
|
|
$ |
9,623 |
|
|
$ |
36,270 |
|
|
$ |
58,153 |
|
Natural Resource Partners L.P. Financial Tables (Unaudited)
|
|||||||
Consolidated Balance Sheets |
|||||||
|
|||||||
|
September 30, |
|
December 31, |
||||
(In thousands, except unit data) |
2019 |
|
2018 |
||||
ASSETS |
|
|
|
||||
Current assets |
|
|
|
||||
Cash and cash equivalents |
$ |
99,636 |
|
|
$ |
101,839 |
|
Restricted cash |
12,527 |
|
|
104,191 |
|
||
Accounts receivable, net |
27,447 |
|
|
32,058 |
|
||
Prepaid expenses and other |
3,111 |
|
|
3,462 |
|
||
Current assets of discontinued operations |
988 |
|
|
993 |
|
||
Total current assets |
$ |
143,709 |
|
|
$ |
242,543 |
|
Land |
24,008 |
|
|
24,008 |
|
||
Plant and equipment, net |
762 |
|
|
984 |
|
||
Mineral rights, net |
733,154 |
|
|
743,112 |
|
||
Intangible assets, net |
40,461 |
|
|
42,513 |
|
||
Equity in unconsolidated investment |
258,063 |
|
|
247,051 |
|
||
Long-term contract receivable |
37,473 |
|
|
38,945 |
|
||
Other assets |
6,274 |
|
|
2,491 |
|
||
Total assets |
$ |
1,243,904 |
|
|
$ |
1,341,647 |
|
LIABILITIES AND CAPITAL |
|
|
|
||||
Current liabilities |
|
|
|
||||
Accounts payable |
$ |
1,591 |
|
|
$ |
2,414 |
|
Accrued liabilities |
7,290 |
|
|
12,347 |
|
||
Accrued interest |
14,364 |
|
|
14,345 |
|
||
Current portion of deferred revenue |
5,047 |
|
|
3,509 |
|
||
Current portion of long-term debt, net |
45,789 |
|
|
115,184 |
|
||
Current liabilities of discontinued operations |
174 |
|
|
947 |
|
||
Total current liabilities |
$ |
74,255 |
|
|
$ |
148,746 |
|
Deferred revenue |
43,587 |
|
|
49,044 |
|
||
Long-term debt, net |
490,378 |
|
|
557,574 |
|
||
Other non-current liabilities |
4,843 |
|
|
1,150 |
|
||
Total liabilities |
$ |
613,063 |
|
|
$ |
756,514 |
|
Commitments and contingencies |
|
|
|
||||
Class A Convertible Preferred Units (250,000 units issued and outstanding at $1,000 par value per unit; liquidation preference of $1,500 per unit) |
$ |
164,587 |
|
|
$ |
164,587 |
|
Partners’ capital: |
|
|
|
||||
Common unitholders’ interest (12,261,199 and 12,249,469 units issued and outstanding at September 30, 2019 and December 31, 2018, respectively) |
$ |
400,266 |
|
|
$ |
355,113 |
|
General partner’s interest |
5,909 |
|
|
5,014 |
|
||
Warrant holders' interest |
66,816 |
|
|
66,816 |
|
||
Accumulated other comprehensive loss |
(3,802 |
) |
|
(3,462 |
) |
||
Total partners’ capital |
$ |
469,189 |
|
|
$ |
423,481 |
|
Non-controlling interest |
(2,935 |
) |
|
(2,935 |
) |
||
Total capital |
$ |
466,254 |
|
|
$ |
420,546 |
|
Total liabilities and capital |
$ |
1,243,904 |
|
|
$ |
1,341,647 |
|
Natural Resource Partners L.P. Financial Tables (Unaudited)
|
||||||||||||||||||||||||||||||
Consolidated Statements of Partners' Capital |
||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||
|
Common Unitholders |
|
General
|
|
Warrant
|
|
Accumulated
|
|
Partners'
|
|
Non-
|
|
Total
|
|||||||||||||||||
|
||||||||||||||||||||||||||||||
(In thousands) |
Units |
|
Amounts |
|
||||||||||||||||||||||||||
Balance at December 31, 2018 |
12,249 |
|
|
$ |
355,113 |
|
|
$ |
5,014 |
|
|
$ |
66,816 |
|
|
$ |
(3,462 |
) |
|
$ |
423,481 |
|
|
$ |
(2,935 |
) |
|
$ |
420,546 |
|
Net income (1) |
— |
|
|
35,005 |
|
|
714 |
|
|
— |
|
|
— |
|
|
35,719 |
|
|
— |
|
|
35,719 |
|
|||||||
Distributions to common unitholders and general partner |
— |
|
|
(5,513 |
) |
|
(112 |
) |
|
— |
|
|
— |
|
|
(5,625 |
) |
|
— |
|
|
(5,625 |
) |
|||||||
Distributions to preferred unitholders |
— |
|
|
(7,350 |
) |
|
(150 |
) |
|
— |
|
|
— |
|
|
(7,500 |
) |
|
— |
|
|
(7,500 |
) |
|||||||
Issuance of unit-based awards |
12 |
|
|
486 |
|
|
— |
|
|
— |
|
|
— |
|
|
486 |
|
|
— |
|
|
486 |
|
|||||||
Unit-based awards amortization and vesting |
— |
|
|
399 |
|
|
— |
|
|
— |
|
|
— |
|
|
399 |
|
|
— |
|
|
399 |
|
|||||||
Comprehensive income from unconsolidated investment and other |
— |
|
|
— |
|
|
10 |
|
|
— |
|
|
1,005 |
|
|
1,015 |
|
|
— |
|
|
1,015 |
|
|||||||
Balance at March 31, 2019 |
12,261 |
|
|
$ |
378,140 |
|
|
$ |
5,476 |
|
|
$ |
66,816 |
|
|
$ |
(2,457 |
) |
|
$ |
447,975 |
|
|
$ |
(2,935 |
) |
|
$ |
445,040 |
|
Net income (1) |
— |
|
|
18,964 |
|
|
387 |
|
|
— |
|
|
— |
|
|
19,351 |
|
|
— |
|
|
19,351 |
|
|||||||
Distributions to common unitholders and general partner |
— |
|
|
(15,939 |
) |
|
(326 |
) |
|
— |
|
|
— |
|
|
(16,265 |
) |
|
— |
|
|
(16,265 |
) |
|||||||
Distributions to preferred unitholders |
— |
|
|
(7,350 |
) |
|
(150 |
) |
|
— |
|
|
— |
|
|
(7,500 |
) |
|
— |
|
|
(7,500 |
) |
|||||||
Unit-based awards amortization and vesting |
— |
|
|
460 |
|
|
— |
|
|
— |
|
|
— |
|
|
460 |
|
|
— |
|
|
460 |
|
|||||||
Comprehensive loss from unconsolidated investment and other |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(825 |
) |
|
(825 |
) |
|
— |
|
|
(825 |
) |
|||||||
Balance at June 30, 2019 |
12,261 |
|
|
$ |
374,275 |
|
|
$ |
5,387 |
|
|
$ |
66,816 |
|
|
$ |
(3,282 |
) |
|
$ |
443,196 |
|
|
$ |
(2,935 |
) |
|
$ |
440,261 |
|
Net income (1) |
— |
|
|
38,386 |
|
|
784 |
|
|
— |
|
|
— |
|
|
39,170 |
|
|
— |
|
|
39,170 |
|
|||||||
Distributions to common unitholders and general partner |
— |
|
|
(5,518 |
) |
|
(112 |
) |
|
— |
|
|
— |
|
|
(5,630 |
) |
|
— |
|
|
(5,630 |
) |
|||||||
Distributions to preferred unitholders |
— |
|
|
(7,350 |
) |
|
(150 |
) |
|
— |
|
|
— |
|
|
(7,500 |
) |
|
— |
|
|
(7,500 |
) |
|||||||
Unit-based awards amortization and vesting |
— |
|
|
473 |
|
|
— |
|
|
— |
|
|
— |
|
|
473 |
|
|
— |
|
|
473 |
|
|||||||
Comprehensive loss from unconsolidated investment and other |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(520 |
) |
|
(520 |
) |
|
— |
|
|
(520 |
) |
|||||||
Balance at September 30, 2019 |
12,261 |
|
|
$ |
400,266 |
|
|
$ |
5,909 |
|
|
$ |
66,816 |
|
|
$ |
(3,802 |
) |
|
$ |
469,189 |
|
|
$ |
(2,935 |
) |
|
$ |
466,254 |
|
| ________________ | |
(1) |
Net income includes $7.5 million attributable to preferred unitholders that accumulated during the period, of which $7.35 million is allocated to the common unitholders and $0.15 million is allocated to the general partner. |
Natural Resource Partners L.P. Financial Tables (Unaudited)
|
||||||||||||||||||||||||||||||
Consolidated Statements of Partners' Capital |
||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
Common Unitholders |
|
General
|
|
Warrant
|
|
Accumulated
|
|
Partners'
|
|
Non-
|
|
Total
|
|||||||||||||||||
|
||||||||||||||||||||||||||||||
(In thousands) |
Units |
|
Amounts |
|
||||||||||||||||||||||||||
Balance at December 31, 2017 |
12,232 |
|
|
$ |
199,851 |
|
|
$ |
1,857 |
|
|
$ |
66,816 |
|
|
$ |
(3,313 |
) |
|
$ |
265,211 |
|
|
$ |
(3,394 |
) |
|
$ |
261,817 |
|
Cumulative effect of adoption of accounting standard |
— |
|
|
69,057 |
|
|
1,409 |
|
|
— |
|
|
— |
|
|
70,466 |
|
|
— |
|
|
70,466 |
|
|||||||
Net income (1) |
— |
|
|
23,851 |
|
|
487 |
|
|
— |
|
|
— |
|
|
24,338 |
|
|
— |
|
|
24,338 |
|
|||||||
Distributions to common unitholders and general partner |
— |
|
|
(5,505 |
) |
|
(112 |
) |
|
— |
|
|
— |
|
|
(5,617 |
) |
|
— |
|
|
(5,617 |
) |
|||||||
Distributions to preferred unitholders |
— |
|
|
(7,610 |
) |
|
(155 |
) |
|
— |
|
|
— |
|
|
(7,765 |
) |
|
— |
|
|
(7,765 |
) |
|||||||
Issuance of unit-based awards |
14 |
|
|
410 |
|
|
— |
|
|
— |
|
|
— |
|
|
410 |
|
|
— |
|
|
410 |
|
|||||||
Unit-based awards amortization and vesting |
— |
|
|
197 |
|
|
— |
|
|
— |
|
|
— |
|
|
197 |
|
|
— |
|
|
197 |
|
|||||||
Comprehensive income (loss) from unconsolidated investment and other |
— |
|
|
— |
|
|
8 |
|
|
— |
|
|
(1,125 |
) |
|
(1,117 |
) |
|
— |
|
|
(1,117 |
) |
|||||||
Balance at March 31, 2018 |
12,246 |
|
|
$ |
280,251 |
|
|
$ |
3,494 |
|
|
$ |
66,816 |
|
|
$ |
(4,438 |
) |
|
$ |
346,123 |
|
|
$ |
(3,394 |
) |
|
$ |
342,729 |
|
Net income (1) |
— |
|
|
36,496 |
|
|
745 |
|
|
— |
|
|
— |
|
|
37,241 |
|
|
869 |
|
|
38,110 |
|
|||||||
Distributions to common unitholders and general partner |
— |
|
|
(5,510 |
) |
|
(113 |
) |
|
— |
|
|
— |
|
|
(5,623 |
) |
|
— |
|
|
(5,623 |
) |
|||||||
Distributions to preferred unitholders |
— |
|
|
(7,350 |
) |
|
(150 |
) |
|
— |
|
|
— |
|
|
(7,500 |
) |
|
— |
|
|
(7,500 |
) |
|||||||
Unit-based awards amortization and vesting |
— |
|
|
136 |
|
|
— |
|
|
— |
|
|
— |
|
|
136 |
|
|
— |
|
|
136 |
|
|||||||
Comprehensive income (loss) from unconsolidated investment and other |
— |
|
|
50 |
|
|
1 |
|
|
— |
|
|
(434 |
) |
|
(383 |
) |
|
(51 |
) |
|
(434 |
) |
|||||||
Balance at June 30, 2018 |
12,246 |
|
|
$ |
304,073 |
|
|
$ |
3,977 |
|
|
$ |
66,816 |
|
|
$ |
(4,872 |
) |
|
$ |
369,994 |
|
|
$ |
(2,576 |
) |
|
$ |
367,418 |
|
Net income (loss) (1) |
— |
|
|
28,322 |
|
|
578 |
|
|
— |
|
|
— |
|
|
28,900 |
|
|
(359 |
) |
|
28,541 |
|
|||||||
Distributions to common unitholders and general partner |
— |
|
|
(5,511 |
) |
|
(112 |
) |
|
— |
|
|
— |
|
|
(5,623 |
) |
|
— |
|
|
(5,623 |
) |
|||||||
Distributions to preferred unitholders |
— |
|
|
(7,350 |
) |
|
(150 |
) |
|
— |
|
|
— |
|
|
(7,500 |
) |
|
— |
|
|
(7,500 |
) |
|||||||
Unit-based awards amortization and vesting |
— |
|
|
139 |
|
|
— |
|
|
— |
|
|
— |
|
|
139 |
|
|
— |
|
|
139 |
|
|||||||
Comprehensive income from unconsolidated investment and other |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
791 |
|
|
791 |
|
|
— |
|
|
791 |
|
|||||||
Balance at September 30, 2018 |
12,246 |
|
|
$ |
319,673 |
|
|
$ |
4,293 |
|
|
$ |
66,816 |
|
|
$ |
(4,081 |
) |
|
$ |
386,701 |
|
|
$ |
(2,935 |
) |
|
$ |
383,766 |
|
| ________________ | |
(1) |
Net income includes $7.5 million attributable to preferred unitholders that accumulated during the period, of which $7.35 million is allocated to the common unitholders and $0.15 million is allocated to the general partner. |
Natural Resource Partners L.P. |
Financial Tables |
(Unaudited) |
The following tables present NRP's unaudited business results by segment for the three months ended September 30, 2019 and 2018 and June 30, 2019:
|
|
Operating Business Segments |
|
|
|
|
||||||||||
|
|
Coal Royalty
|
|
|
|
Corporate and
|
|
|
||||||||
(In thousands) |
|
|
Soda Ash |
|
|
Total |
||||||||||
Three Months Ended September 30, 2019 |
|
|
|
|
|
|
|
|
||||||||
Revenues |
|
$ |
43,784 |
|
|
$ |
13,818 |
|
|
$ |
— |
|
|
$ |
57,602 |
|
Gain on asset sales and disposals |
|
6,107 |
|
|
— |
|
|
— |
|
|
6,107 |
|
||||
Total revenues and other income |
|
$ |
49,891 |
|
|
$ |
13,818 |
|
|
$ |
— |
|
|
$ |
63,709 |
|
Asset impairments |
|
$ |
484 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
484 |
|
Net income (loss) from continuing operations |
|
$ |
40,252 |
|
|
$ |
13,595 |
|
|
$ |
(14,684 |
) |
|
$ |
39,163 |
|
Adjusted EBITDA (1) |
|
$ |
44,120 |
|
|
$ |
6,147 |
|
|
$ |
(4,253 |
) |
|
$ |
46,014 |
|
Distributable cash flow (1) (2) |
|
$ |
47,661 |
|
|
$ |
6,147 |
|
|
$ |
(5,507 |
) |
|
$ |
48,179 |
|
Free cash flow (1) |
|
$ |
41,553 |
|
|
$ |
6,147 |
|
|
$ |
(5,507 |
) |
|
$ |
42,193 |
|
|
|
|
|
|
|
|
|
|
||||||||
Three Months Ended September 30, 2018 |
|
|
|
|
|
|
|
|
||||||||
Revenues |
|
$ |
49,371 |
|
|
$ |
8,836 |
|
|
$ |
— |
|
|
$ |
58,207 |
|
Gain on asset sales and disposals |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
||||
Total revenues and other income |
|
$ |
49,371 |
|
|
$ |
8,836 |
|
|
$ |
— |
|
|
$ |
58,207 |
|
Asset impairments |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
Net income (loss) from continuing operations |
|
$ |
37,693 |
|
|
$ |
8,836 |
|
|
$ |
(20,676 |
) |
|
$ |
25,853 |
|
Adjusted EBITDA (1) |
|
$ |
42,940 |
|
|
$ |
12,250 |
|
|
$ |
(3,183 |
) |
|
$ |
52,007 |
|
Distributable cash flow (1) |
|
$ |
43,194 |
|
|
$ |
12,250 |
|
|
$ |
(27,368 |
) |
|
$ |
28,076 |
|
Free cash flow (1) |
|
$ |
43,194 |
|
|
$ |
12,250 |
|
|
$ |
(27,368 |
) |
|
$ |
28,076 |
|
|
|
|
|
|
|
|
|
|
||||||||
Three Months Ended June 30, 2019 |
|
|
|
|
|
|
|
|
||||||||
Revenues |
|
$ |
69,890 |
|
|
$ |
11,333 |
|
|
$ |
— |
|
|
$ |
81,223 |
|
Gain on asset sales and disposals |
|
246 |
|
|
— |
|
|
— |
|
|
246 |
|
||||
Total revenues and other income |
|
$ |
70,136 |
|
|
$ |
11,333 |
|
|
$ |
— |
|
|
$ |
81,469 |
|
Asset impairments |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
Net income (loss) from continuing operations |
|
$ |
53,707 |
|
|
$ |
11,333 |
|
|
$ |
(45,934 |
) |
|
$ |
19,106 |
|
Adjusted EBITDA (1) |
|
$ |
57,677 |
|
|
$ |
9,310 |
|
|
$ |
(4,196 |
) |
|
$ |
62,791 |
|
Cash flow provided by (used in) continuing operations: |
|
|
|
|
|
|
|
|
||||||||
Operating activities |
|
$ |
55,811 |
|
|
$ |
9,310 |
|
|
$ |
(11,762 |
) |
|
$ |
53,359 |
|
Investing activities |
|
$ |
698 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
698 |
|
Financing activities |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
(97,989 |
) |
|
$ |
(97,989 |
) |
Distributable cash flow (1) (2) |
|
$ |
56,509 |
|
|
$ |
9,310 |
|
|
$ |
(11,762 |
) |
|
$ |
54,013 |
|
Free cash flow (1) |
|
$ |
56,262 |
|
|
$ |
9,310 |
|
|
$ |
(11,762 |
) |
|
$ |
53,810 |
|
| _________________________ | |
(1) |
See "Non-GAAP Financial Measures" and reconciliation tables at the end of this release. |
(2) |
Includes adjustments of net proceeds from the sale of the construction aggregates business which are classified as investing cash flow from discontinued operations. |
| Natural Resource Partners L.P. |
Financial Tables |
(Unaudited) |
The following tables present NRP's unaudited business results by segment for the nine months ended September 30, 2019 and 2018:
|
|
Operating Business Segments |
|
|
|
|
||||||||||
|
|
Coal Royalty
|
|
|
|
Corporate and
|
|
|
||||||||
(In thousands) |
|
|
Soda Ash |
|
|
Total |
||||||||||
Nine Months Ended September 30, 2019 |
|
|
|
|
|
|
|
|
||||||||
Revenues |
|
$ |
168,777 |
|
|
$ |
36,833 |
|
|
$ |
— |
|
|
$ |
205,610 |
|
Gain on asset sales and disposals |
|
6,609 |
|
|
— |
|
|
— |
|
|
6,609 |
|
||||
Total revenues and other income |
|
$ |
175,386 |
|
|
$ |
36,833 |
|
|
$ |
— |
|
|
$ |
212,219 |
|
Asset impairments |
|
$ |
484 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
484 |
|
Net income (loss) from continuing operations |
|
$ |
136,566 |
|
|
$ |
36,610 |
|
|
$ |
(79,142 |
) |
|
$ |
94,034 |
|
Adjusted EBITDA (1) |
|
$ |
148,796 |
|
|
$ |
25,257 |
|
|
$ |
(12,799 |
) |
|
$ |
161,254 |
|
Cash flow provided by (used in) continuing operations: |
|
|
|
|
|
|
|
|
||||||||
Operating activities |
|
$ |
139,821 |
|
|
$ |
25,257 |
|
|
$ |
(47,153 |
) |
|
$ |
117,925 |
|
Investing activities |
|
$ |
7,962 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
7,962 |
|
Financing activities |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
(219,754 |
) |
|
$ |
(219,754 |
) |
Distributable cash flow (1) (2) |
|
$ |
147,783 |
|
|
$ |
25,257 |
|
|
$ |
(47,153 |
) |
|
$ |
125,331 |
|
Free cash flow (1) |
|
$ |
141,172 |
|
|
$ |
25,257 |
|
|
$ |
(47,153 |
) |
|
$ |
119,276 |
|
|
|
|
|
|
|
|
|
|
||||||||
Nine Months Ended September 30, 2018 |
|
|
|
|
|
|
|
|
||||||||
Revenues |
|
$ |
152,150 |
|
|
$ |
34,986 |
|
|
$ |
— |
|
|
$ |
187,136 |
|
Gain on asset sales and disposals |
|
819 |
|
|
— |
|
|
— |
|
|
819 |
|
||||
Total revenues and other income |
|
$ |
152,969 |
|
|
$ |
34,986 |
|
|
$ |
— |
|
|
$ |
187,955 |
|
Asset impairments |
|
$ |
242 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
242 |
|
Net income (loss) from continuing operations |
|
$ |
116,241 |
|
|
$ |
34,986 |
|
|
$ |
(63,959 |
) |
|
$ |
87,268 |
|
Adjusted EBITDA (1) |
|
$ |
131,337 |
|
|
$ |
36,750 |
|
|
$ |
(10,782 |
) |
|
$ |
157,305 |
|
Cash flow provided by (used in) continuing operations: |
|
|
|
|
|
|
|
|
||||||||
Operating activities |
|
$ |
132,122 |
|
|
$ |
34,653 |
|
|
$ |
(68,982 |
) |
|
$ |
97,793 |
|
Investing activities |
|
$ |
3,432 |
|
|
$ |
2,097 |
|
|
$ |
— |
|
|
$ |
5,529 |
|
Financing activities |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
(71,695 |
) |
|
$ |
(71,695 |
) |
Distributable cash flow (1) |
|
$ |
135,554 |
|
|
$ |
36,750 |
|
|
$ |
(68,982 |
) |
|
$ |
103,322 |
|
Free cash flow (1) |
|
$ |
134,728 |
|
|
$ |
36,750 |
|
|
$ |
(68,982 |
) |
|
$ |
102,496 |
|
| _________________________ | |
(1) |
See "Non-GAAP Financial Measures" and reconciliation tables at the end of this release. |
(2) |
Includes adjustments of net proceeds from the sale of the construction aggregates business which are classified as investing cash flow from discontinued operations. |
Natural Resource Partners L.P. Financial Tables (Unaudited)
|
||||||||||||||||||||
Operating Statistics - Coal Royalty and Other |
||||||||||||||||||||
|
||||||||||||||||||||
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||||||
|
|
September 30, |
|
June 30, |
|
September 30, |
||||||||||||||
(In thousands, except per ton data) |
|
2019 |
|
2018 |
|
2019 |
|
2019 |
|
2018 |
||||||||||
Coal sales volumes (tons) |
|
|
|
|
|
|
|
|
|
|
||||||||||
Appalachia |
|
|
|
|
|
|
|
|
|
|
||||||||||
Northern (1) |
|
290 |
|
|
349 |
|
|
1,625 |
|
|
2,774 |
|
|
1,490 |
|
|||||
Central |
|
3,222 |
|
|
3,873 |
|
|
3,825 |
|
|
10,469 |
|
|
11,582 |
|
|||||
Southern |
|
438 |
|
|
346 |
|
|
386 |
|
|
1,172 |
|
|
1,288 |
|
|||||
Total Appalachia |
|
3,950 |
|
|
4,568 |
|
|
5,836 |
|
|
14,415 |
|
|
14,360 |
|
|||||
Illinois Basin |
|
551 |
|
|
609 |
|
|
535 |
|
|
1,646 |
|
|
2,091 |
|
|||||
Northern Powder River Basin |
|
532 |
|
|
855 |
|
|
591 |
|
|
1,979 |
|
|
2,896 |
|
|||||
Total coal sales volumes |
|
5,033 |
|
|
6,032 |
|
|
6,962 |
|
|
18,040 |
|
|
19,347 |
|
|||||
Coal royalty revenue per ton |
|
|
|
|
|
|
|
|
|
|
||||||||||
Appalachia |
|
|
|
|
|
|
|
|
|
|
||||||||||
Northern (1) |
|
$ |
2.54 |
|
|
$ |
4.01 |
|
|
$ |
0.86 |
|
|
$ |
2.23 |
|
|
$ |
3.82 |
|
Central |
|
5.25 |
|
|
5.37 |
|
|
6.03 |
|
|
5.79 |
|
|
5.57 |
|
|||||
Southern |
|
5.99 |
|
|
6.82 |
|
|
6.69 |
|
|
7.00 |
|
|
6.98 |
|
|||||
Illinois Basin |
|
4.82 |
|
|
4.89 |
|
|
4.51 |
|
|
4.70 |
|
|
4.56 |
|
|||||
Northern Powder River Basin |
|
4.69 |
|
|
3.79 |
|
|
2.75 |
|
|
3.21 |
|
|
2.70 |
|
|||||
Combined average coal royalty revenue per ton |
|
5.05 |
|
|
5.10 |
|
|
4.46 |
|
|
4.94 |
|
|
4.99 |
|
|||||
Coal royalty revenues |
|
|
|
|
|
|
|
|
|
|
||||||||||
Appalachia |
|
|
|
|
|
|
|
|
|
|
||||||||||
Northern (1) |
|
$ |
735 |
|
|
$ |
1,402 |
|
|
$ |
1,393 |
|
|
$ |
6,173 |
|
|
$ |
5,698 |
|
Central |
|
16,929 |
|
|
20,786 |
|
|
23,055 |
|
|
60,628 |
|
|
64,538 |
|
|||||
Southern |
|
2,626 |
|
|
2,359 |
|
|
2,581 |
|
|
8,204 |
|
|
8,985 |
|
|||||
Total Appalachia |
|
20,290 |
|
|
24,547 |
|
|
27,029 |
|
|
75,005 |
|
|
79,221 |
|
|||||
Illinois Basin |
|
2,658 |
|
|
2,973 |
|
|
2,411 |
|
|
7,739 |
|
|
9,533 |
|
|||||
Northern Powder River Basin |
|
2,492 |
|
|
3,237 |
|
|
1,624 |
|
|
6,347 |
|
|
7,817 |
|
|||||
Unadjusted coal royalty revenues |
|
25,440 |
|
|
30,757 |
|
|
31,064 |
|
|
89,091 |
|
|
96,571 |
|
|||||
Coal royalty adjustment for minimum leases |
|
(713 |
) |
|
(48 |
) |
|
(361 |
) |
|
(1,530 |
) |
|
(98 |
) |
|||||
Total coal royalty revenues |
|
$ |
24,727 |
|
|
$ |
30,709 |
|
|
$ |
30,703 |
|
|
$ |
87,561 |
|
|
$ |
96,473 |
|
Other revenues |
|
|
|
|
|
|
|
|
|
|
||||||||||
Production lease minimum revenues |
|
$ |
2,752 |
|
|
$ |
1,769 |
|
|
$ |
15,879 |
|
|
$ |
21,331 |
|
|
$ |
6,310 |
|
Minimum lease straight-line revenues |
|
3,982 |
|
|
567 |
|
|
3,854 |
|
|
11,152 |
|
|
1,739 |
|
|||||
Property tax revenues |
|
1,606 |
|
|
1,263 |
|
|
1,377 |
|
|
4,416 |
|
|
3,968 |
|
|||||
Wheelage revenues |
|
1,675 |
|
|
1,572 |
|
|
1,945 |
|
|
5,035 |
|
|
5,155 |
|
|||||
Coal overriding royalty revenues |
|
2,189 |
|
|
3,918 |
|
|
3,999 |
|
|
10,163 |
|
|
10,492 |
|
|||||
Lease amendment revenues |
|
1,535 |
|
|
— |
|
|
4,414 |
|
|
6,720 |
|
|
— |
|
|||||
Aggregates royalty revenues |
|
954 |
|
|
888 |
|
|
1,237 |
|
|
3,655 |
|
|
3,551 |
|
|||||
Oil and gas royalty revenues |
|
374 |
|
|
1,427 |
|
|
482 |
|
|
2,575 |
|
|
5,679 |
|
|||||
Other revenues |
|
125 |
|
|
405 |
|
|
726 |
|
|
1,429 |
|
|
1,545 |
|
|||||
Total other revenues |
|
$ |
15,192 |
|
|
$ |
11,809 |
|
|
$ |
33,913 |
|
|
$ |
66,476 |
|
|
$ |
38,439 |
|
Coal royalty and other |
|
$ |
39,919 |
|
|
$ |
42,518 |
|
|
$ |
64,616 |
|
|
$ |
154,037 |
|
|
$ |
134,912 |
|
Transportation and processing services revenues |
|
3,865 |
|
|
6,853 |
|
|
5,274 |
|
|
14,740 |
|
|
17,238 |
|
|||||
Gain on asset sales and disposals |
|
6,107 |
|
|
— |
|
|
246 |
|
|
6,609 |
|
|
819 |
|
|||||
Total Coal Royalty and Other segment revenues and other income |
|
$ |
49,891 |
|
|
$ |
49,371 |
|
|
$ |
70,136 |
|
|
$ |
175,386 |
|
|
$ |
152,969 |
|
| _________________________ | ||||||
(1) |
Northern Appalachia includes NRP's Hibbs Run property that has significant sales volumes, but a low fixed rate per ton. |
|||||
| Natural Resource Partners L.P.
Reconciliation of Non-GAAP Measures (Unaudited)
|
||||||||||||||||
Adjusted EBITDA |
||||||||||||||||
|
|
|
||||||||||||||
|
|
Coal Royalty
|
|
|
|
Corporate and
|
|
|
||||||||
(In thousands) |
|
|
Soda Ash |
|
|
Total |
||||||||||
Three Months Ended September 30, 2019 |
|
|
|
|
|
|
|
|
||||||||
Net income (loss) from continuing operations |
|
$ |
40,252 |
|
|
$ |
13,595 |
|
|
$ |
(14,684 |
) |
|
$ |
39,163 |
|
Less: equity earnings from unconsolidated investment |
|
— |
|
|
(13,818 |
) |
|
— |
|
|
(13,818 |
) |
||||
Add: net loss attributable to non-controlling interest |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
||||
Add: total distributions from unconsolidated investment |
|
— |
|
|
6,370 |
|
|
— |
|
|
6,370 |
|
||||
Add: interest expense, net |
|
— |
|
|
— |
|
|
10,431 |
|
|
10,431 |
|
||||
Add: loss on extinguishment of debt |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
||||
Add: depreciation, depletion and amortization |
|
3,384 |
|
|
— |
|
|
— |
|
|
3,384 |
|
||||
Add: asset impairments |
|
484 |
|
|
— |
|
|
— |
|
|
484 |
|
||||
Adjusted EBITDA |
|
$ |
44,120 |
|
|
$ |
6,147 |
|
|
$ |
(4,253 |
) |
|
$ |
46,014 |
|
|
|
|
|
|
|
|
|
|
||||||||
Three Months Ended September 30, 2018 |
|
|
|
|
|
|
|
|
||||||||
Net income (loss) from continuing operations |
|
$ |
37,693 |
|
|
$ |
8,836 |
|
|
$ |
(20,676 |
) |
|
$ |
25,853 |
|
Less: equity earnings from unconsolidated investment |
|
— |
|
|
(8,836 |
) |
|
— |
|
|
(8,836 |
) |
||||
Add: net loss attributable to non-controlling interest |
|
359 |
|
|
— |
|
|
— |
|
|
359 |
|
||||
Add: total distributions from unconsolidated investment |
|
— |
|
|
12,250 |
|
|
— |
|
|
12,250 |
|
||||
Add: interest expense, net |
|
— |
|
|
— |
|
|
17,493 |
|
|
17,493 |
|
||||
Add: loss on extinguishment of debt |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
||||
Add: depreciation, depletion and amortization |
|
4,888 |
|
|
— |
|
|
— |
|
|
4,888 |
|
||||
Add: asset impairments |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
||||
Adjusted EBITDA |
|
$ |
42,940 |
|
|
$ |
12,250 |
|
|
$ |
(3,183 |
) |
|
$ |
52,007 |
|
|
|
|
|
|
|
|
|
|
||||||||
Three Months Ended June 30, 2019 |
|
|
|
|
|
|
|
|
||||||||
Net income (loss) from continuing operations |
|
$ |
53,707 |
|
|
$ |
11,333 |
|
|
$ |
(45,934 |
) |
|
$ |
19,106 |
|
Less: equity earnings from unconsolidated investment |
|
— |
|
|
(11,333 |
) |
|
— |
|
|
(11,333 |
) |
||||
Add: net loss attributable to non-controlling interest |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
||||
Add: total distributions from unconsolidated investment |
|
— |
|
|
9,310 |
|
|
— |
|
|
9,310 |
|
||||
Add: interest expense, net |
|
— |
|
|
— |
|
|
12,456 |
|
|
12,456 |
|
||||
Add: loss on extinguishment of debt |
|
— |
|
|
— |
|
|
29,282 |
|
|
29,282 |
|
||||
Add: depreciation, depletion and amortization |
|
3,970 |
|
|
— |
|
|
— |
|
|
3,970 |
|
||||
Add: asset impairments |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
||||
Adjusted EBITDA |
|
$ |
57,677 |
|
|
$ |
9,310 |
|
|
$ |
(4,196 |
) |
|
$ |
62,791 |
|
| Natural Resource Partners L.P.
Reconciliation of Non-GAAP Measures (Unaudited)
|
||||||||||||||||
Adjusted EBITDA |
||||||||||||||||
|
||||||||||||||||
|
|
Coal Royalty
|
|
|
|
Corporate and
|
|
|
||||||||
(In thousands) |
|
|
Soda Ash |
|
|
Total |
||||||||||
Nine Months Ended September 30, 2019 |
|
|
|
|
|
|
|
|
||||||||
Net income (loss) from continuing operations |
|
$ |
136,566 |
|
|
$ |
36,610 |
|
|
$ |
(79,142 |
) |
|
$ |
94,034 |
|
Less: equity earnings from unconsolidated investment |
|
— |
|
|
(36,833 |
) |
|
— |
|
|
(36,833 |
) |
||||
Less: net income attributable to non-controlling interest |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
||||
Add: total distributions from unconsolidated investment |
|
— |
|
|
25,480 |
|
|
— |
|
|
25,480 |
|
||||
Add: interest expense, net |
|
— |
|
|
— |
|
|
37,061 |
|
|
37,061 |
|
||||
Add: loss on extinguishment of debt |
|
— |
|
|
— |
|
|
29,282 |
|
|
29,282 |
|
||||
Add: depreciation, depletion and amortization |
|
11,746 |
|
|
— |
|
|
— |
|
|
11,746 |
|
||||
Add: asset impairments |
|
484 |
|
|
— |
|
|
— |
|
|
484 |
|
||||
Adjusted EBITDA |
|
$ |
148,796 |
|
|
$ |
25,257 |
|
|
$ |
(12,799 |
) |
|
$ |
161,254 |
|
|
|
|
|
|
|
|
|
|
||||||||
Nine Months Ended September 30, 2018 |
|
|
|
|
|
|
|
|
||||||||
Net income (loss) from continuing operations |
|
$ |
116,241 |
|
|
$ |
34,986 |
|
|
$ |
(63,959 |
) |
|
$ |
87,268 |
|
Less: equity earnings from unconsolidated investment |
|
— |
|
|
(34,986 |
) |
|
— |
|
|
(34,986 |
) |
||||
Less: net income attributable to non-controlling interest |
|
(510 |
) |
|
— |
|
|
— |
|
|
(510 |
) |
||||
Add: total distributions from unconsolidated investment |
|
— |
|
|
36,750 |
|
|
— |
|
|
36,750 |
|
||||
Add: interest expense, net |
|
— |
|
|
— |
|
|
53,177 |
|
|
53,177 |
|
||||
Add: loss on extinguishment of debt |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
||||
Add: depreciation, depletion and amortization |
|
15,364 |
|
|
— |
|
|
— |
|
|
15,364 |
|
||||
Add: asset impairments |
|
242 |
|
|
— |
|
|
— |
|
|
242 |
|
||||
Adjusted EBITDA |
|
$ |
131,337 |
|
|
$ |
36,750 |
|
|
$ |
(10,782 |
) |
|
$ |
157,305 |
|
| Natural Resource Partners L.P.
Reconciliation of Non-GAAP Measures (Unaudited)
|
||||||||||||||||
Distributable Cash Flow and Free Cash Flow |
||||||||||||||||
|
||||||||||||||||
|
|
Coal Royalty
|
|
|
|
Corporate and
|
|
|
||||||||
(In thousands) |
|
|
Soda Ash |
|
|
Total |
||||||||||
Three Months Ended September 30, 2019 |
|
|
|
|
|
|
|
|
||||||||
Net cash provided by (used in) operating activities of continuing operations |
|
$ |
41,094 |
|
|
$ |
6,147 |
|
|
$ |
(5,507 |
) |
|
41,734 |
|
|
Add: distributions from unconsolidated investment in excess of cumulative earnings |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
||||
Add: proceeds from asset sales and disposals |
|
6,108 |
|
|
— |
|
|
— |
|
|
6,108 |
|
||||
Add: proceeds from sale of discontinued operations |
|
— |
|
|
— |
|
|
— |
|
|
(122 |
) |
||||
Add: return of long-term contract receivable |
|
459 |
|
|
— |
|
|
— |
|
|
459 |
|
||||
Distributable cash flow |
|
$ |
47,661 |
|
|
$ |
6,147 |
|
|
$ |
(5,507 |
) |
|
$ |
48,179 |
|
Less: proceeds from asset sales and disposals |
|
(6,108 |
) |
|
— |
|
|
— |
|
|
(6,108 |
) |
||||
Less: proceeds from sale of discontinued operations |
|
— |
|
|
— |
|
|
— |
|
|
122 |
|
||||
Free cash flow |
|
$ |
41,553 |
|
|
$ |
6,147 |
|
|
$ |
(5,507 |
) |
|
$ |
42,193 |
|
|
|
|
|
|
|
|
|
|
||||||||
Three Months Ended September 30, 2018 |
|
|
|
|
|
|
|
|
||||||||
Net cash provided by (used in) operating activities of continuing operations |
|
$ |
41,604 |
|
|
$ |
12,250 |
|
|
$ |
(27,368 |
) |
|
$ |
26,486 |
|
Add: distributions from unconsolidated investment in excess of cumulative earnings |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
||||
Add: proceeds from asset sales and disposals |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
||||
Add: proceeds from sale of discontinued operations |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
||||
Add: return of long-term contract receivable |
|
1,590 |
|
|
— |
|
|
— |
|
|
1,590 |
|
||||
Distributable cash flow |
|
$ |
43,194 |
|
|
$ |
12,250 |
|
|
$ |
(27,368 |
) |
|
$ |
28,076 |
|
Less: proceeds from asset sales and disposals |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
||||
Less: proceeds from sale of discontinued operations |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
||||
Free cash flow |
|
$ |
43,194 |
|
|
$ |
12,250 |
|
|
$ |
(27,368 |
) |
|
$ |
28,076 |
|
|
|
|
|
|
|
|
|
|
||||||||
Three Months Ended June 30, 2019 |
|
|
|
|
|
|
|
|
||||||||
Net cash provided by (used in) operating activities of continuing operations |
|
$ |
55,811 |
|
|
$ |
9,310 |
|
|
$ |
(11,762 |
) |
|
$ |
53,359 |
|
Add: distributions from unconsolidated investment in excess of cumulative earnings |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
||||
Add: proceeds from asset sales and disposals |
|
247 |
|
|
— |
|
|
— |
|
|
247 |
|
||||
Add: proceeds from sale of discontinued operations |
|
— |
|
|
— |
|
|
— |
|
|
(44 |
) |
||||
Add: return of long-term contract receivable |
|
451 |
|
|
— |
|
|
— |
|
|
451 |
|
||||
Distributable cash flow |
|
$ |
56,509 |
|
|
$ |
9,310 |
|
|
$ |
(11,762 |
) |
|
$ |
54,013 |
|
Less: proceeds from asset sales and disposals |
|
(247 |
) |
|
— |
|
|
— |
|
|
(247 |
) |
||||
Less: proceeds from sale of discontinued operations |
|
— |
|
|
— |
|
|
— |
|
|
44 |
|
||||
Free cash flow |
|
$ |
56,262 |
|
|
$ |
9,310 |
|
|
$ |
(11,762 |
) |
|
$ |
53,810 |
|
| Natural Resource Partners L.P.
Reconciliation of Non-GAAP Measures (Unaudited)
|
||||||||||||||||||||||||
Distributable Cash Flow and Free Cash Flow |
||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||
|
|
Coal Royalty
|
|
|
|
Corporate and
|
|
|
||||||||||||||||
(In thousands) |
|
|
Soda Ash |
|
|
Total |
||||||||||||||||||
Nine Months Ended September 30, 2019 |
|
|
|
|
|
|
|
|
||||||||||||||||
Net cash provided by (used in) operating activities of continuing operations |
|
$ |
139,821 |
|
|
$ |
25,257 |
|
|
$ |
(47,153 |
) |
|
$ |
117,925 |
|
||||||||
Add: distributions from unconsolidated investment in excess of cumulative earnings |
|
— |
|
— |
|
— |
|
— |
||||||||||||||||
Add: proceeds from asset sales and disposals |
|
6,611 |
|
— |
|
— |
|
6,611 |
||||||||||||||||
Add: proceeds from sale of discontinued operations |
|
— |
|
— |
|
— |
|
(556 |
) |
|||||||||||||||
Add: return of long-term contract receivable |
|
1,351 |
|
— |
|
— |
|
1,351 |
||||||||||||||||
Distributable cash flow |
|
$ |
147,783 |
|
|
$ |
25,257 |
|
|
$ |
(47,153 |
) |
|
$ |
125,331 |
|
||||||||
Less: proceeds from asset sales and disposals |
|
(6,611 |
) |
|
— |
|
— |
|
(6,611 |
) |
||||||||||||||
Less: proceeds from sale of discontinued operations |
|
— |
|
— |
|
— |
|
556 |
||||||||||||||||
Free cash flow |
|
$ |
141,172 |
|
|
$ |
25,257 |
|
|
$ |
(47,153 |
) |
|
$ |
119,276 |
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||||||||||
Nine Months Ended September 30, 2018 |
|
|
|
|
|
|
|
|
||||||||||||||||
Net cash provided by (used in) operating activities of continuing operations |
|
$ |
132,122 |
|
|
$ |
34,653 |
|
|
$ |
(68,982 |
) |
|
$ |
97,793 |
|
||||||||
Add: distributions from unconsolidated investment in excess of cumulative earnings |
|
— |
|
2,097 |
|
— |
|
2,097 |
||||||||||||||||
Add: proceeds from asset sales and disposals |
|
826 |
|
— |
|
— |
|
826 |
||||||||||||||||
Add: proceeds from sale of discontinued operations |
|
— |
|
— |
|
— |
|
— |
||||||||||||||||
Add: return of long-term contract receivable |
|
2,606 |
|
— |
|
— |
|
2,606 |
||||||||||||||||
Distributable cash flow |
|
$ |
135,554 |
|
|
$ |
36,750 |
|
|
$ |
(68,982 |
) |
|
$ |
103,322 |
|
||||||||
Less: proceeds from asset sales and disposals |
|
(826 |
) |
|
— |
|
— |
|
(826 |
) |
||||||||||||||
Less: proceeds from sale of discontinued operations |
|
— |
|
— |
|
— |
|
— |
||||||||||||||||
Free cash flow |
|
$ |
134,728 |
|
|
$ |
36,750 |
|
|
$ |
(68,982 |
) |
|
$ |
102,496 |
|
||||||||
| Natural Resource Partners L.P.
Reconciliation of Non-GAAP Measures (Unaudited)
|
||||||||||||||||||||
LTM Free Cash Flow and Cash Flow Cushion |
||||||||||||||||||||
|
|
|
|
|
||||||||||||||||
|
|
Three Months Ended |
|
|
||||||||||||||||
(In thousands) |
|
December 31,
|
|
March 31,
|
|
June 30,
|
|
September 30,
|
|
Last 12 Months |
||||||||||
Net cash provided by (used in) operating activities of continuing operations |
|
$ |
80,489 |
|
|
$ |
22,832 |
|
|
$ |
53,359 |
|
|
$ |
41,734 |
|
|
$ |
198,414 |
|
Add: proceeds from asset sales and disposals |
|
1,623 |
|
|
256 |
|
|
247 |
|
|
6,108 |
|
|
8,234 |
|
|||||
Add: proceeds from sale of discontinued operations |
|
198,091 |
|
|
(390 |
) |
|
(44 |
) |
|
(122 |
) |
|
197,535 |
|
|||||
Add: return of long-term contract receivable |
|
455 |
|
|
441 |
|
|
451 |
|
|
459 |
|
|
1,806 |
|
|||||
Distributable cash flow |
|
$ |
280,658 |
|
|
$ |
23,139 |
|
|
$ |
54,013 |
|
|
$ |
48,179 |
|
|
$ |
405,989 |
|
Less: proceeds from asset sales and disposals |
|
(1,623 |
) |
|
(256 |
) |
|
(247 |
) |
|
(6,108 |
) |
|
(8,234 |
) |
|||||
Less: proceeds from sale of discontinued operations |
|
(198,091 |
) |
|
390 |
|
|
44 |
|
|
122 |
|
|
(197,535 |
) |
|||||
Free cash flow |
|
$ |
80,944 |
|
|
$ |
23,273 |
|
|
$ |
53,810 |
|
|
$ |
42,193 |
|
|
$ |
200,220 |
|
Add (less): free cash flow provided by (used in) discontinued operations |
|
125 |
|
|
121 |
|
|
234 |
|
|
(359 |
) |
|
121 |
|
|||||
Free cash flow including discontinued operations |
|
$ |
81,069 |
|
|
$ |
23,394 |
|
|
$ |
54,044 |
|
|
$ |
41,834 |
|
|
$ |
200,341 |
|
Add (less): free cash flow used in (provided by) discontinued operations |
|
(125 |
) |
|
(121 |
) |
|
(234 |
) |
|
359 |
|
|
(121 |
) |
|||||
Less: cash flow from one-time Hillsboro litigation settlement |
|
(25,000 |
) |
|
— |
|
|
— |
|
|
— |
|
|
(25,000 |
) |
|||||
Free cash flow excluding discontinued operations and one-time beneficial items |
|
$ |
55,944 |
|
|
$ |
23,273 |
|
|
$ |
53,810 |
|
|
$ |
42,193 |
|
|
$ |
175,220 |
|
Less: mandatory Opco debt repayments |
|
(24,665 |
) |
|
(37,152 |
) |
|
(2,365 |
) |
|
(8,276 |
) |
|
(72,458 |
) |
|||||
Less: preferred unit distributions |
|
(7,500 |
) |
|
(7,500 |
) |
|
(7,500 |
) |
|
(7,500 |
) |
|
(30,000 |
) |
|||||
Less: common unit distributions |
|
(5,623 |
) |
|
(5,625 |
) |
|
(16,265 |
) |
|
(5,630 |
) |
|
(33,143 |
) |
|||||
Cash flow cushion |
|
$ |
18,156 |
|
|
$ |
(27,004 |
) |
|
$ |
27,680 |
|
|
$ |
20,787 |
|
|
$ |
39,619 |
|
| Natural Resource Partners L.P.
Reconciliation of Non-GAAP Measures (Unaudited)
|
||||||||||||||||||||
Leverage Ratio |
||||||||||||||||||||
|
||||||||||||||||||||
|
|
Three Months Ended |
|
|
||||||||||||||||
(In thousands) |
|
December 31,
|
|
March 31,
|
|
June 30,
|
|
September 30,
|
|
Last 12 Months |
||||||||||
Net income from continuing operations |
|
$ |
35,092 |
|
|
$ |
35,765 |
|
|
$ |
19,106 |
|
|
$ |
39,163 |
|
|
$ |
129,126 |
|
Less: equity earnings from unconsolidated investment |
|
(13,320 |
) |
|
(11,682 |
) |
|
(11,333 |
) |
|
(13,818 |
) |
|
(50,153 |
) |
|||||
Add: total distributions from unconsolidated investment |
|
9,800 |
|
|
9,800 |
|
|
9,310 |
|
|
6,370 |
|
|
35,280 |
|
|||||
Add: interest expense, net |
|
17,001 |
|
|
14,174 |
|
|
12,456 |
|
|
10,431 |
|
|
54,062 |
|
|||||
Add: loss on extinguishment of debt |
|
— |
|
|
— |
|
|
29,282 |
|
|
— |
|
|
29,282 |
|
|||||
Add: depreciation, depletion and amortization |
|
6,325 |
|
|
4,392 |
|
|
3,970 |
|
|
3,384 |
|
|
18,071 |
|
|||||
Add: asset impairments |
|
18,038 |
|
|
— |
|
|
— |
|
|
484 |
|
|
18,522 |
|
|||||
Adjusted EBITDA |
|
$ |
72,936 |
|
|
$ |
52,449 |
|
|
$ |
62,791 |
|
|
$ |
46,014 |
|
|
$ |
234,190 |
|
Less: one-time Hillsboro litigation settlement |
|
|
|
|
|
|
|
|
|
(25,000 |
) |
|||||||||
Adjusted EBITDA less one-time Hillsboro litigation settlement |
|
|
|
|
|
|
|
|
|
$ |
209,190 |
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Debt—at September 30, 2019 |
|
|
|
|
|
|
|
|
|
$ |
544,390 |
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Leverage Ratio (1) |
|
|
|
|
|
|
|
|
|
2.3 |
x |
|||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Leverage Ratio less one-time Hillsboro litigation settlement (2) |
|
|
|
|
|
|
|
|
|
2.6 |
x |
|||||||||
| _________________________ | |||||||
(1) |
Leverage Ratio is calculated as the outstanding principal of NRP's debt as of September 30, 2019 divided by the last twelve months' Adjusted EBITDA. |
||||||
(2) |
Leverage Ratio less one-time Hillsboro litigation settlement is calculated as the outstanding principal of NRP's debt as of September 30, 2019 divided by the last twelve months' Adjusted EBITDA less one-time Hillsboro litigation settlement. |
||||||
| Natural Resource Partners L.P.
Reconciliation of Non-GAAP Measures (Unaudited)
|
||||||||||||||||
Return on Capital Employed ("ROCE") |
||||||||||||||||
|
|
Coal Royalty
|
|
|
|
Corporate and
|
|
|
||||||||
(In thousands) |
|
|
Soda Ash |
|
|
Total |
||||||||||
LTM Ended September 30, 2019 |
|
|
|
|
|
|
|
|
||||||||
Net income (loss) from continuing operations |
|
$ |
181,053 |
|
|
$ |
49,930 |
|
|
$ |
(101,857 |
) |
|
$ |
129,126 |
|
Financing costs |
|
— |
|
|
— |
|
|
85,942 |
|
|
85,942 |
|
||||
Return |
|
$ |
181,053 |
|
|
$ |
49,930 |
|
|
$ |
(15,915 |
) |
|
$ |
215,068 |
|
|
|
|
|
|
|
|
|
|
||||||||
As of September 30, 2018 |
|
|
|
|
|
|
|
|
||||||||
Total assets of continuing operations |
|
$ |
968,310 |
|
|
$ |
242,901 |
|
|
$ |
3,051 |
|
|
$ |
1,214,262 |
|
Less: total current liabilities of continuing operations excluding current debt |
|
(8,991 |
) |
|
— |
|
|
(8,415 |
) |
|
(17,406 |
) |
||||
Less: total long-term liabilities of continuing operations excluding long-term debt |
|
(40,938 |
) |
|
— |
|
|
(51 |
) |
|
(40,989 |
) |
||||
Capital employed excluding discontinued operations |
|
$ |
918,381 |
|
|
$ |
242,901 |
|
|
$ |
(5,415 |
) |
|
$ |
1,155,867 |
|
|
|
|
|
|
|
|
|
|
||||||||
Total Partners' Capital (1) |
|
$ |
921,316 |
|
|
$ |
242,901 |
|
|
$ |
(961,717 |
) |
|
$ |
386,701 |
|
Less: non-controlling interest |
|
(2,935 |
) |
|
— |
|
|
— |
|
|
(2,935 |
) |
||||
Less: Partners' Capital from discontinued operations |
|
— |
|
|
— |
|
|
— |
|
|
(184,201 |
) |
||||
Total Partners' Capital excluding discontinued operations |
|
$ |
918,381 |
|
|
$ |
242,901 |
|
|
$ |
(961,717 |
) |
|
$ |
199,565 |
|
Class A Convertible Preferred Units |
|
— |
|
|
— |
|
|
164,587 |
|
|
164,587 |
|
||||
Debt |
|
— |
|
|
— |
|
|
791,715 |
|
|
791,715 |
|
||||
Capital employed excluding discontinued operations |
|
$ |
918,381 |
|
|
$ |
242,901 |
|
|
$ |
(5,415 |
) |
|
$ |
1,155,867 |
|
|
|
|
|
|
|
|
|
|
||||||||
ROCE excluding discontinued operations |
|
19.7% |
|
20.6% |
|
N/A |
|
18.6% |
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Excluding one-time beneficial items: |
|
|
|
|
|
|
|
|
||||||||
Return |
|
$ |
181,053 |
|
|
$ |
49,930 |
|
|
$ |
(15,915 |
) |
|
$ |
215,068 |
|
Less: income from Hillsboro litigation settlement |
|
(25,000 |
) |
|
— |
|
|
— |
|
|
(25,000 |
) |
||||
Return excluding discontinued operations and one-time beneficial items |
|
$ |
156,053 |
|
|
$ |
49,930 |
|
|
$ |
(15,915 |
) |
|
$ |
190,068 |
|
|
|
|
|
|
|
|
|
|
||||||||
ROCE excluding discontinued operations and one-time beneficial items |
|
17.0% |
|
20.6% |
|
N/A |
|
16.4% |
||||||||
| _________________________ | |
(1) |
Total Partners' Capital includes $184.2 million from discontinued operations. |