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Alpha Metallurgical Resources(AMR) - 2024 Q2 - Quarterly Report
AMRAlpha Metallurgical Resources(AMR)2024-08-05 11:38

Financial Performance - Coal revenues for Q2 2024 were 800.13million,adecreaseof6.3800.13 million, a decrease of 6.3% from 853.81 million in Q2 2023[12]. - Total revenues for the first half of 2024 were 1.67billion,down5.81.67 billion, down 5.8% from 1.77 billion in the same period of 2023[12]. - Net income for Q2 2024 was 58.91million,adeclineof67.558.91 million, a decline of 67.5% compared to 181.36 million in Q2 2023[14]. - Basic income per common share for Q2 2024 was 4.53,down64.14.53, down 64.1% from 12.63 in Q2 2023[12]. - Total comprehensive income for Q2 2024 was 50.43million,significantlylowerthan50.43 million, significantly lower than 178.11 million in Q2 2023[14]. - Net income for the six months ended June 30, 2024, was 185,904,adecreaseof59185,904, a decrease of 59% compared to 452,126 for the same period in 2023[19]. - Adjusted EBITDA for the three months ended June 30, 2024, was 115,995,adecreaseof55.1115,995, a decrease of 55.1% compared to 258,494 for the same period in 2023[97]. - Adjusted EBITDA for the six months ended June 30, 2024, was 305.6million,adecreaseof305.6 million, a decrease of 307.4 million or 50.1% compared to 612.9millionintheprioryear[160].RevenueBreakdown−TotalrevenuesforthethreemonthsendedJune30,2024,were612.9 million in the prior year[160]. Revenue Breakdown - Total revenues for the three months ended June 30, 2024, were 803,969, a decrease of 6.3% from 858,371forthesameperiodin2023[95].−CoalrevenuesforthethreemonthsendedJune30,2024,were858,371 for the same period in 2023[95]. - Coal revenues for the three months ended June 30, 2024, were 800,130, down from 853,807intheprioryear,representingadeclineof6.3853,807 in the prior year, representing a decline of 6.3%[100]. - Export met coal revenues increased to 634,176 for the three months ended June 30, 2024, up 9.3% from 580,328intheprioryear[34].−Domesticmetcoalrevenuesdecreasedsignificantlyto580,328 in the prior year[34]. - Domestic met coal revenues decreased significantly to 145,815, down 35.4% from 225,658forthesameperiodin2023[34].−Approximately81225,658 for the same period in 2023[34]. - Approximately 81% of coal revenues for the three months ended June 30, 2024, were derived from sales to customers outside the United States, compared to 72% in the same period of 2023[117]. Cost and Expenses - Cost of coal sales increased by 80.3 million, or 13.8%, to 663.8million,primarilyduetoa4.7663.8 million, primarily due to a 4.7% increase in coal sales volumes and an 8.7% rise in average cost per ton[131]. - Total costs and expenses rose by 93.0 million, or 14.5%, from 640.3millionto640.3 million to 733.3 million[132]. - Selling, general and administrative expenses for Q2 2024 were 18.81million,up7.418.81 million, up 7.4% from 17.51 million in Q2 2023[12]. - Selling, general and administrative expenses increased by 3.0million,or7.83.0 million, or 7.8%, for the six months ended June 30, 2024, mainly due to higher wages and benefits expenses[150]. Assets and Liabilities - Total assets increased to 2.49 billion as of June 30, 2024, compared to 2.41billionattheendof2023,reflectingagrowthof3.62.41 billion at the end of 2023, reflecting a growth of 3.6%[17]. - Total liabilities rose to 849.38 million as of June 30, 2024, compared to 832.13millionattheendof2023,anincreaseof2.1832.13 million at the end of 2023, an increase of 2.1%[17]. - Total stockholders' equity as of June 30, 2023, was 1,566,730, reflecting an increase from 1,429,750attheendof2022[25].CashFlowandInvestments−Netcashprovidedbyoperatingactivitiesdecreasedto1,429,750 at the end of 2022[25]. Cash Flow and Investments - Net cash provided by operating activities decreased to 334,199, down 32% from 494,606intheprioryear[19].−Netcashusedininvestingactivitiesincreasedto494,606 in the prior year[19]. - Net cash used in investing activities increased to 140,531, compared to 71,301intheprioryear,indicatingasignificantriseininvestmentoutflows[19].−Thenetincreaseincash,cashequivalents,andrestrictedcashforthesixmonthsendedJune30,2024,was71,301 in the prior year, indicating a significant rise in investment outflows[19]. - The net increase in cash, cash equivalents, and restricted cash for the six months ended June 30, 2024, was 71.1 million[184]. - The company expects to invest up to 25.0millionannuallyforinfrastructureandequipmentupgradesatDTAoverthenextsixyears[174].MarketandOperationalInsights−Thecompanyisfocusedonexpandingitsoperationsinmetallurgicalcoalproductsforthesteelindustry,leveragingitshigh−qualityreservesandsignificantportcapacity[28].−Thecompany’sstrategicfocusremainsontheproductionofmetallurgicalqualitycoalforthesteelindustry,followingtheclosureofitslastthermalmineinAugust2023[92].−Economicpressuresandgeopoliticaluncertaintyhavenegativelyimpactedmetallurgicalcoalmarkets,affectingthecompany′sresultsforthethreeandsixmonthsendedJune30,2024[120].TaxandRegulatoryMatters−TheCompanyrecordedanincometaxexpenseof25.0 million annually for infrastructure and equipment upgrades at DTA over the next six years[174]. Market and Operational Insights - The company is focused on expanding its operations in metallurgical coal products for the steel industry, leveraging its high-quality reserves and significant port capacity[28]. - The company’s strategic focus remains on the production of metallurgical quality coal for the steel industry, following the closure of its last thermal mine in August 2023[92]. - Economic pressures and geopolitical uncertainty have negatively impacted metallurgical coal markets, affecting the company's results for the three and six months ended June 30, 2024[120]. Tax and Regulatory Matters - The Company recorded an income tax expense of 19,443 on income before income taxes of 205,347forthesixmonthsendedJune30,2024,comparedtoanincometaxexpenseof205,347 for the six months ended June 30, 2024, compared to an income tax expense of 76,009 on income before income taxes of 528,135forthesameperiodin2023[63].−TheeffectivetaxrateforthesixmonthsendedJune30,2024,was9.5528,135 for the same period in 2023[63]. - The effective tax rate for the six months ended June 30, 2024, was 9.5%, compared to 14.4% for the same period in 2023[154]. - The company is facing potential collateral requirements of approximately 80,000 to 100,000tosecurecertainblacklungobligationsunderproposedregulations[86].ShareholderActions−Thecompanydeclaredacashdividendof100,000 to secure certain black lung obligations under proposed regulations[86]. Shareholder Actions - The company declared a cash dividend of 0.50 per share during the second quarter of 2023, totaling 7,233[25].−Thecompanyrepurchased6,630,535sharesforapproximately7,233[25]. - The company repurchased 6,630,535 shares for approximately 1,098,916 under its share repurchase program as of June 30, 2024[47].