Arch Resources(US:ARCH)2024-11-05 12:00Financial Performance - Arch Resources reported a net loss of $6.2 million, or $0.34 per diluted share, in Q3 2024, compared to a net income of $73.7 million, or $3.91 per diluted share, in Q3 2023[1]. - Adjusted EBITDA for Q3 2024 was $44.2 million, down from $126.3 million in the same quarter last year[1]. - Revenues for the three months ended September 30, 2024, totaled $617.9 million, a decrease from $744.6 million in the prior-year quarter[1]. - Revenues for Q3 2024 were $617.9 million, a decrease of 17% from $744.6 million in Q3 2023[13]. - Net loss for Q3 2024 was $6.2 million, compared to a net income of $73.7 million in Q3 2023[13]. - Adjusted EBITDA for Q3 2024 was $44.2 million, down from $126.3 million in Q3 2023, representing a decline of 65%[13]. - The company reported a basic loss per share of $0.34 for Q3 2024, compared to earnings of $4.05 per share in Q3 2023[13]. - The company reported a net loss of $6,221,000 for the quarter, contrasting with a net income of $73,691,000 in the prior year[34]. - Segment adjusted EBITDA from coal operations was $67,014,000, down from $151,695,000 year-over-year[34]. Operational Highlights - The company managed to ship 2.1 million tons of coking coal despite a three-week outage of the shiploader at Curtis Bay Terminal, which reduced shipments by an estimated 200,000 tons[2]. - The thermal segment returned to profitability in Q3 2024, supported by improved performance from Powder River Basin operations[5]. - Arch generated cash provided by operating activities of $24.9 million in Q3, with a working capital build of $18.2 million[6]. - Total segment cash margin for metallurgical coal was $53.1 million, down from $128.3 million in the same quarter last year[21]. - The company reported a total of 2.4 million tons sold for metallurgical coal, an increase from 2.3 million tons in the same quarter last year[21]. - Total tons sold in the quarter were 19,177, with a significant increase in thermal coal sales compared to the previous quarter[26][30]. Cash and Investments - Arch has deployed over $1.3 billion under its capital return program since February 2022, including $736 million in dividends[7]. - The company ended Q3 2024 with $255.9 million in cash and short-term investments, resulting in a net cash position of $127.7 million[6]. - Cash and cash equivalents decreased to $219.6 million from $287.8 million at the end of 2023[14]. - Cash and cash equivalents at the end of the period were $220,695, up from $184,197 at the end of September 2023[16]. - The company issued a term loan due in 2025 amounting to $20,000 during the quarter[16]. Debt and Liabilities - Long-term debt was eliminated, with current maturities of debt increasing to $126.9 million from $35.3 million at the end of 2023[14]. - Total liabilities decreased to $926.9 million from $1 billion at the end of 2023[14]. - Total debt, excluding debt issuance costs, decreased to $128,220 from $142,106 as of December 31, 2023[19]. Dividends - Arch declared a fixed quarterly cash dividend of $0.25 per share, amounting to a total payment of $4.6 million, payable on November 26, 2024[2]. - The company declared dividends of $0.25 per common share, down from $3.97 in the same quarter last year[13]. Merger and Future Outlook - The merger with CONSOL Energy is expected to close by the end of Q1 2025, with projected annual cost savings and synergies of $110 million to $140 million[9]. - The company incurred merger-related costs of $7,002,000 and severance costs of $6,649,000 during the quarter[34].