Alpha Metallurgical Resources(AMR) - 2024 Q2 - Quarterly Report

Financial Performance - Coal revenues for Q2 2024 were $800.13 million, a decrease of 6.3% from $853.81 million in Q2 2023[12]. - Total revenues for the first half of 2024 were $1.67 billion, down 5.8% from $1.77 billion in the same period of 2023[12]. - Net income for Q2 2024 was $58.91 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, down 64.1% from $12.63 in Q2 2023[12]. - Total comprehensive income for Q2 2024 was $50.43 million, significantly lower than $178.11 million in Q2 2023[14]. - Net income for the six months ended June 30, 2024, was $185,904, 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, 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 $305.6 million, a decrease of $307.4 million or 50.1% compared to $612.9 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 $858,371 for the same period in 2023[95]. - Coal revenues for the three months ended June 30, 2024, were $800,130, down from $853,807 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 $580,328 in the prior year[34]. - Domestic met coal revenues decreased significantly to $145,815, down 35.4% from $225,658 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 $663.8 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 $640.3 million to $733.3 million[132]. - Selling, general and administrative expenses for Q2 2024 were $18.81 million, up 7.4% from $17.51 million in Q2 2023[12]. - Selling, general and administrative expenses increased by $3.0 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 $2.41 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 $832.13 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 $1,429,750 at the end of 2022[25]. Cash Flow and Investments - Net cash provided by operating activities decreased to $334,199, down 32% from $494,606 in the prior year[19]. - Net cash used in investing activities increased to $140,531, compared to $71,301 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 $25.0 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 $205,347 for the six months ended June 30, 2024, compared to an income tax expense of $76,009 on income before income taxes of $528,135 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 $100,000 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]. - The company repurchased 6,630,535 shares for approximately $1,098,916 under its share repurchase program as of June 30, 2024[47].