{"id":519788,"date":"2021-07-29T08:01:14","date_gmt":"2021-07-29T12:01:14","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/peabody-reports-results-for-quarter-ended-june-30-2021\/"},"modified":"2021-07-29T08:01:14","modified_gmt":"2021-07-29T12:01:14","slug":"peabody-reports-results-for-quarter-ended-june-30-2021","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/peabody-reports-results-for-quarter-ended-june-30-2021\/","title":{"rendered":"Peabody Reports Results For Quarter Ended June 30, 2021"},"content":{"rendered":"
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PR Newswire<\/p>\n<\/p><\/div>\n

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\n ST. LOUIS<\/span>, July 29, 2021<\/span> \/PRNewswire\/ — Peabody (NYSE: BTU) today announced its second quarter 2021 operating results, including revenues of $723.4 million<\/span>; loss from continuing operations, net of income taxes of $23.0 million<\/span>; net loss attributable to common stockholders of $28.6 million<\/span>; diluted loss per share from continuing operations of $0.26<\/span>; and Adjusted EBITDA0F1<\/sup>\u00a0of $122.1 million<\/span>.\u00a0 <\/p>\n

“We are optimistic about the future given strong coal market demand and pricing around the globe as economies continue to recover from the pandemic; our assets are responding to the current market cycle and continue to benefit from cost improvement initiatives,” said Peabody President and Chief Executive Officer Jim Grech<\/span>. “The company has taken a disciplined approach focusing on expanding margins, through ongoing operational improvements, cost controls and sales strategies, along with reducing debt, as we progress to position the company to be resilient in all market cycles.”<\/p>\n

\n Second Quarter 2021 Financial Results<\/b>\n <\/p>\n

Second quarter revenues totaled $723.4 million<\/span> compared to $626.7 million<\/span> in the prior year primarily due to the impact of higher volumes and improved seaborne thermal pricing.\u00a0 <\/p>\n

Selling, general and administrative expenses decreased 15 percent from the prior year to $21.4 million<\/span> as a result of the company’s ongoing cost reduction efforts.\u00a0\u00a0<\/p>\n

Depreciation, depletion, and amortization (DD&A) declined 13 percent from the prior year to\u00a0$77.1 million, primarily due to the impairment at the North Antelope Rochelle Mine recorded in Q2 2020.<\/p>\n

Interest expense of $45.4 million<\/span> increased $11.1 million<\/span> over the prior year due to higher borrowing costs and amortization of debt issuance costs. <\/p>\n

Loss from continuing operations, net of income taxes totaled $23.0 million<\/span> compared to $1.5 billion<\/span> in the prior year, or $127.2 million<\/span> excluding the $1.4 billion<\/span> non-cash impairment of the North Antelope Rochelle Mine.\u00a0 Adjusted EBITDA totaled $122.1 million<\/span> compared to $23.4 million<\/span> in the prior year primarily due to higher realized seaborne thermal pricing, higher U.S. thermal volumes and improved costs across the platform.<\/p>\n

\n Segment Performance <\/b>\n <\/p>\n

During the second quarter, the seaborne thermal segment shipped 4.1 million tons with exports of 2.0 million tons at an average realized price of $73<\/span> per ton and 2.1 million tons sold under a long-term domestic contract.\u00a0 Despite a year-over-year reduction in sales volumes, unfavorable exchange rates, and higher fuel and royalty costs, seaborne thermal segment costs of $29.61<\/span> per ton were largely in line with the prior year reflecting the continued impact of cost reduction initiatives and product mix. \u00a0The segment reported 37 percent Adjusted EBITDA margins and Adjusted EBITDA of $71.4 million<\/span>.\u00a0 <\/p>\n

In the second quarter, Wilpinjong shipped 3.3 million tons at an average realized price of $38<\/span> per ton, which included 1.2 million tons of export sales at an average realized price of $63<\/span> per ton and 2.1 million tons of domestic sales at an average price of $22<\/span> per ton. \u00a0Wilpinjong costs of $22<\/span> per ton were impacted by unfavorable exchange rates and higher fuel and royalty costs compared to the prior year.\u00a0 Operating cash flow was also impacted by timing of shipments, higher accounts receivable and higher inventory levels.\u00a0 Wilpinjong contributed approximately $52 million<\/span> of Adjusted EBITDA, completed $7 million<\/span> of capital expenditures and had $102 million<\/span> of cash and cash equivalents as of June 30<\/span>, 2021.\u00a0 <\/p>\n

The seaborne met segment shipped 1.4 million tons at an average realized price of $85.48<\/span> per short ton in the second quarter, with Metropolitan restarting longwall production late in the quarter.\u00a0 Total segment costs of $104.24<\/span> per ton decreased 14% compared to the prior year as productivity improvements and increased sales volumes at the CMJV offset the impacts of unfavorable exchange rates, ramp up costs at Metropolitan and Shoal Creek idle costs.\u00a0 Seaborne met costs excluding Shoal Creek were approximately $95<\/span> per ton, favorable to $110<\/span> per ton in the prior year primarily due to fleet optimization and mine sequencing at the CMJV, which lowered costs by more than 20% to $84<\/span> per ton. \u00a0The\u00a0segment reported an Adjusted EBITDA loss of $26.4 million<\/span>.\u00a0 <\/p>\n

The PRB segment shipped 22.5 million tons at an average realized price of $11.06<\/span> per ton. \u00a0PRB costs per ton decreased by two percent to $9.04<\/span> as higher fuel cost impact of $0.37<\/span> per ton was more than offset by 26% higher volumes over the prior year.\u00a0 The segment reported 18% Adjusted EBITDA margins and Adjusted EBITDA of $45.5 million<\/span>. <\/p>\n

The other U.S. thermal segment shipped 3.9 million tons at an average realized price of $40.70<\/span> per ton.\u00a0 Cost per ton decreased 5 percent from the prior year to $29.57<\/span> due to pit sequencing and timing of longwall moves in the prior year. \u00a0The segment reported 27 percent Adjusted EBITDA margins and Adjusted EBITDA of $44.3 million<\/span>. <\/p>\n

\n Balance Sheet and Cash Flow<\/b>\n <\/p>\n

Peabody ended the quarter with $561.9 million<\/span> of cash, cash equivalents and restricted cash, a $61.8 million<\/span> reduction over the prior quarter.\u00a0 The company retired approximately $84 million<\/span> of debt in the quarter and reached agreements to retire an additional $50 million<\/span> that will settle after June 30<\/span>, 2021.\u00a0 <\/p>\n

During the quarter, the company completed multiple bilateral debt-for-equity exchanges by issuing 4.5 million shares of common stock in exchange for $30.9 million<\/span> of Senior Secured Notes due March 2022.\u00a0 The company also retired $53 million<\/span> of other senior secured debt through open market repurchases.\u00a0 As a result, Peabody recorded a net gain on debt extinguishment of $11.8 million<\/span>.\u00a0 The current portion of long-term debt increased by $25 million<\/span> due primarily to the pending settlement of additional debt repurchases.<\/p>\n

For the year, the company has retired $126 million<\/span> of senior secured debt, with an additional $50 million<\/span> pending settlement after June 30, 2021<\/span>.<\/p>\n

Also, during the quarter, the company sold 8.1 million shares of common stock under its previously announced “at-the-market” equity offering program (ATM), raising net cash proceeds of $65.1 million<\/span>.\u00a0 Subsequent to June 30, 2021<\/span>, the company settled sales of an additional 2.7 million shares under the program, raising net cash proceeds of $21.5 million<\/span>, resulting in 1.7 million shares remaining available for issuance under the currently authorized ATM program.\u00a0 <\/p>\n

\n Outlook<\/b>\u00a0\u00a0\u00a0\u00a0<\/p>\n

Based on current market conditions, Peabody anticipates the following in 2021: <\/p>\n

\n US Thermal Operations:<\/b>\n <\/p>\n