NPR(NRP) - 2021 Q1 - Quarterly Report

Revenue Performance - Total revenues and other income for Q1 2021 were $37.151 million, a decrease of 8$40.214 million in Q1 2020[112]. - Coal Royalty and Other segment revenues increased by 4% to $35.178 million from$33.942 million year-over-year, while Soda Ash segment revenues decreased by 69% to $1.973 million from$6.272 million[112]. - Revenues from the Soda Ash segment were primarily impacted by lower sales prices due to demand disruptions caused by the COVID-19 pandemic, resulting in a $4.3 million decrease compared to the prior year[107]. - Coal royalty revenues decreased by$3.7 million to $15.365 million, primarily due to reclassifications of certain revenues[117]. - Other revenues increased by$5.2 million to $17.562 million, driven by a$2.6 million increase in production lease minimum revenues[118]. Cash Flow and Liquidity - Free cash flow for the quarter ended March 31, 2021, was $23.7 million, with liquidity at$196.8 million, consisting of $96.8 million in cash and$100 million in borrowing capacity[102]. - As of March 31, 2021, total liquidity was $196.8 million, comprising$96.8 million in cash and cash equivalents and $100.0 million in borrowing capacity[125]. - Cash flows from operating activities decreased by$8.7 million, from $31.9 million in Q1 2020 to$23.2 million in Q1 2021, primarily due to lower operating cash flow and cash distributions from Ciner Wyoming[126]. - Cash flows used in financing activities decreased by $3.0 million, from$29.8 million in Q1 2020 to $26.8 million in Q1 2021, attributed to lower preferred unit cash distributions[127]. - Distributable cash flow (DCF) decreased by$6.6 million to $26.562 million, while free cash flow (FCF) decreased by$6.7 million to $26.503 million[124]. Debt and Financial Ratios - The consolidated leverage ratio increased to 4.5x as of March 31, 2021, exceeding the 3.75x threshold, which restricts cash distributions on preferred units[103]. - The company anticipates that its leverage ratio will continue to rise through Q2 2021 before beginning to decline as debt is paid down[103]. - Total debt, net as of March 31, 2021, was$455.2 million, down from $471.5 million as of December 31, 2020[131]. - The current portion of long-term debt, net was$39.0 million as of March 31, 2021, compared to $39.1 million as of December 31, 2020[131]. - Long-term debt, net decreased from$432.4 million as of December 31, 2020, to $416.1 million as of March 31, 2021[131]. - The company remains in compliance with the financial covenants in its debt agreements[131]. Operational Performance - Ciner Wyoming's distributions decreased to$3.9 million in Q1 2021 from $7.1 million in Q1 2020, with regular distributions suspended since Q3 2020 due to the pandemic[108]. - Lessees sold 6.6 million tons of coal from the company's properties in Q1 2021, with approximately 50$3.22 compared to $4.44 in the prior year[114]. - Total operating expenses rose by 69$18.797 million, largely due to a $4.0 million increase in asset impairments[119]. - Adjusted EBITDA decreased by$2.5 million to $29.436 million, primarily due to lower cash distributions from Ciner Wyoming[121]. - Asset impairments accounted for$4.043 million in total operating expenses, reflecting lease terminations[119]. Market Outlook - The company expects ongoing volatility in the soda ash market due to uncertainties related to the COVID-19 pandemic, despite Ciner Wyoming being one of the lowest-cost producers globally[106]. - Ciner Wyoming has reprioritized capital expenditures to enhance financial flexibility amid the pandemic's impact on its operations[111]. - There are no off-balance sheet arrangements or risks related to liquidity and capital resources from unconsolidated entities[132]. - There have been no significant changes to critical accounting estimates since the last annual report[134]. Net Income - The company reported a net income of $20.488 million for the three months ended March 31, 2021[121].