Alliance Resource Partners, L.P. Q1 FY2021 Earnings Call

· Earnings call transcript and AI-powered summary

Financial Highlights (Compared to Q1 2020)

  • Net Income: $24.7 million vs. net loss of $144.8 million in Q1 2020.
  • Adjusted Net Income: $24.7 million vs. $12.2 million in Q1 2020 (excluding $157 million non-cash charges).
  • Revenue: Down 9.2%, primarily due to lower coal shipments and expiring high-priced contracts.
  • Adjusted EBITDA: $109.8 million vs. $111.7 million in Q1 2020.
  • Operating Expenses: Decreased by $37.8 million due to efficiency initiatives.
  • Cash Distribution: $0.10 per unit declared; annualized at 30% of anticipated free cash flow.
  • Total Debt and Lease Obligations: Reduced by $52.9 million, bringing total leverage to 1.43x (6.5% improvement compared to Q4 2020).

Segment Performance

  • Coal Segment: Shipment delays (~950K tons) caused a $13 million negative cash flow and EBITDA impact. Costs per ton declined 10.5% Y/Y to $29.72.
  • Inventories: Built ~1.2 million tons due to unplanned delays; expected to normalize throughout the year.
  • Oil & Gas Royalties: Adjusted EBITDA up 16.7% Q/Q to $11.9 million due to higher prices and volumes. BOE price realizations up 21.6% Y/Y and 30.5% Q/Q.

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Operator: Good day, and welcome to the Alliance Resource Partners L.P. First Quarter 2021 Earnings Conference Call. All participants will be in a listen-only mode [Operator Instructions]. Please note that this event is being recorded. I would now like to turn the conference over to Brian Cantrell, Senior VP and Chief Financial Officer. Please go ahead. Brian Cantrell: Thank you, Matt, and welcome, everyone. Earlier this morning, Alliance Resource Partners released its first quarter 2021 financial and operating results, and we'll now discuss these results as well as our perspective on market conditions and outlook. Following our prepared remarks, we'll open the call to your questions. Before beginning, a reminder that some of our remarks today may include forward-looking statements, subject to a variety of risks, uncertainties and assumptions that are contained in our filings from time to time with the Securities and Exchange Commission, and are also reflected in this morning's press release. While these forward-looking statements are based on the information currently available to us, if one or more of these risks or uncertainties materialize or if our underlying assumptions prove incorrect, actual results may vary materially from those we projected or expected. In providing these remarks, the partnership has no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, unless required by law to

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