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Alpha Metallurgical Resources(AMR) - 2024 Q3 - Quarterly Report

Revenue Performance - Coal revenues for Q3 2024 were 669.783million,adecreaseof9.4669.783 million, a decrease of 9.4% from 738.998 million in Q3 2023[11]. - Total revenues for the nine months ended September 30, 2024, were 2.339billion,down6.42.339 billion, down 6.4% from 2.511 billion in the same period of 2023[11]. - Total revenues for Q3 2024 were 671,897,adecreaseof9.4671,897, a decrease of 9.4% from 741,820 in Q3 2023[91]. - Total revenues for the three months ended September 30, 2024, were 671.9million,adecreaseof671.9 million, a decrease of 69.9 million or 9.4% from 741.8millionintheprioryear[125].NonGAAPcoalrevenuesdecreasedby741.8 million in the prior year[125]. - Non-GAAP coal revenues decreased by 86.0 million, or 13.5%, for the three months ended September 30, 2024, primarily due to a 21.97perton,or14.221.97 per ton, or 14.2%, reduction in non-GAAP coal sales realization per ton[136]. - Non-GAAP coal revenues decreased by 209.2 million, or 9.8%, primarily due to a 30.49perton,or17.230.49 per ton, or 17.2%, reduction in non-GAAP coal sales realization per ton[151]. Net Income and Earnings - Net income for Q3 2024 was 3.804 million, a significant decline of 95.9% compared to 93.814millioninQ32023[13].BasicincomepercommonshareforQ32024was93.814 million in Q3 2023[13]. - Basic income per common share for Q3 2024 was 0.29, down from 6.88inQ32023,reflectingadecreaseof95.86.88 in Q3 2023, reflecting a decrease of 95.8%[11]. - Net income for the nine months ended September 30, 2024, was 189,708, a decrease from 545,940inthesameperiodof2023,representingadeclineofapproximately65.3545,940 in the same period of 2023, representing a decline of approximately 65.3%[18]. - The net income for the three months ended September 30, 2024, was 3,804, a significant decrease of 95.9% from 93,814inthesameperiodof2023[38].BasicnetincomepercommonshareforthethreemonthsendedSeptember30,2024,was93,814 in the same period of 2023[38]. - Basic net income per common share for the three months ended September 30, 2024, was 0.29, down from 6.88forthesameperiodin2023[38].CashFlowandLiquidityCashandcashequivalentsroseto6.88 for the same period in 2023[38]. Cash Flow and Liquidity - Cash and cash equivalents rose to 484.560 million as of September 30, 2024, compared to 268.207millionattheendof2023,anincreaseof80.6268.207 million at the end of 2023, an increase of 80.6%[16]. - Cash, cash equivalents, and restricted cash increased by 221.5 million for the nine months ended September 30, 2024, compared to an increase of 23.7millioninthesameperiodof2023[182].Netcashprovidedbyoperatingactivitieswas23.7 million in the same period of 2023[182]. - Net cash provided by operating activities was 523,661, down from 651,806,indicatingadecreaseofabout19.6651,806, indicating a decrease of about 19.6% year-over-year[18]. - Net cash provided by operating activities decreased due to a reduction in coal margin, partially offset by changes in operating assets and liabilities[179]. - As of September 30, 2024, total liquidity is 507.0 million, comprising 484.6millionincashandcashequivalentsand484.6 million in cash and cash equivalents and 97.5 million in credit facility availability[159]. Expenses and Costs - Selling, general and administrative expenses for Q3 2024 were 15.987million,downfrom15.987 million, down from 18.053 million in Q3 2023, a decrease of 11.8%[11]. - The cost of coal sales increased by 34.1million,or6.034.1 million, or 6.0%, for the three months ended September 30, 2024, primarily due to an 8.0% increase in average cost per ton[126]. - Non-GAAP cost of coal sales increased by 21.5 million, or 4.8%, for the three months ended September 30, 2024, primarily due to a 3.9% increase in average cost of coal sales per ton[137]. - Cost of coal sales increased by 223.6million,or13.3223.6 million, or 13.3%, due to a 4.6% increase in coal sales volumes and an 8.2% increase in average cost per ton[150]. Assets and Liabilities - Total assets increased to 2.479 billion as of September 30, 2024, compared to 2.406billionattheendof2023,representingagrowthof3.02.406 billion at the end of 2023, representing a growth of 3.0%[16]. - Total liabilities decreased slightly to 828.792 million from 832.129millionattheendof2023,areductionof0.3832.129 million at the end of 2023, a reduction of 0.3%[16]. - Total accrued expenses and other current liabilities increased to 190,085 as of September 30, 2024, from 177,512asofDecember31,2023,representingagrowthof7.9177,512 as of December 31, 2023, representing a growth of 7.9%[42]. - Long-term debt decreased to 6,683 as of September 30, 2024, from 10,374asofDecember31,2023,areductionof35.010,374 as of December 31, 2023, a reduction of 35.0%[43]. Strategic Focus and Operations - The company operates primarily in Virginia and West Virginia, focusing on metallurgical coal products for the steel industry[25]. - The Company’s strategic focus is on producing metallurgical quality coal for the steel industry, with operations located in the Central Appalachian coal basin[86]. - The company plans to idle the Checkmate Powellton mine as of December 6, 2024, due to recent decreases in coal prices and current economic conditions[120]. - The company has repurchased a total of 6,630,535 shares for approximately 1,098,916 under its share repurchase program as of September 30, 2024[41]. Regulatory and Compliance - The company is in compliance with all covenants under the ABL Agreement as of September 30, 2024, maintaining minimum liquidity of 75,000[46].Futureregulatorychangescouldincreaseobligationsandcollateralrequirements,potentiallyreducingliquidity[160].TheSupremeCourtsdecisiononChevrondeferencemayleadtoincreasedscrutinyoffutureregulations,includingthoseproposedbytheDOL[81].MarketConditionsandIndustryTrendsTheAustralianPremiumLowVolatileindexfellby16.575,000[46]. - Future regulatory changes could increase obligations and collateral requirements, potentially reducing liquidity[160]. - The Supreme Court's decision on Chevron deference may lead to increased scrutiny of future regulations, including those proposed by the DOL[81]. Market Conditions and Industry Trends - The Australian Premium Low Volatile index fell by 16.5% from 245.20 per metric ton to 204.75permetrictonduringQ32024[109].TheU.S.EastCoastLowVolatileindexdecreasedfrom204.75 per metric ton during Q3 2024[109]. - The U.S. East Coast Low Volatile index decreased from 218.00 per metric ton at the beginning of Q3 to $189.00 at the end[109]. - The world manufacturing PMI declined to 48.8 in September 2024, indicating deteriorating conditions[110]. - India is projected to be the strongest driver of steel demand growth, contrasting with declines in other major economies[107]. - In September 2024, global crude steel production was 143.6 million metric tons, a decrease of 4.7% compared to September 2023[111].