Alpha Metallurgical Resources(US:AMR)2023-08-03 16:00Financial Performance - Coal revenues for Q2 2023 were $853.8 million, down 36% from $1.3 billion in Q2 2022[10] - Total revenues for the first half of 2023 were $1.77 billion, a decrease of 26% compared to $2.41 billion in the same period of 2022[10] - Net income for Q2 2023 was $181.4 million, a decline of 68% from $574.2 million in Q2 2022[12] - Basic income per common share for Q2 2023 was $12.63, down from $31.24 in Q2 2022[10] - The company reported a total comprehensive income of $178.1 million for Q2 2023, compared to $570.2 million in Q2 2022[12] - Net income for the six months ended June 30, 2023, was $452,126, a decrease of 53.7% compared to $975,048 for the same period in 2022[18] - Total revenues for the three months ended June 30, 2023, were $858,371,000, a decrease from $1,336,412,000 in the same period of 2022, representing a decline of approximately 36%[102][103] - Total revenues fell by $478.0 million, or 35.8%, to $858.4 million for the three months ended June 30, 2023, from $1.3 billion in the prior year[148] - Total revenues decreased by $638.8 million, or 26.5%, to $1.77 billion for the six months ended June 30, 2023, compared to the prior year period[181] Assets and Liabilities - Total current assets as of June 30, 2023, were $1.08 billion, a slight decrease from $1.11 billion at the end of 2022[14] - Total assets increased to $2.36 billion as of June 30, 2023, compared to $2.31 billion at the end of 2022[14] - Total liabilities decreased to $791.1 million from $882.7 million at the end of 2022[14] - Total stockholders' equity increased to $1.57 billion as of June 30, 2023, from $1.43 billion at the end of 2022[16] - Total accrued expenses and other current liabilities decreased from $265,256 as of December 31, 2022, to $185,738 as of June 30, 2023[55] - Long-term debt increased from $10,975 as of December 31, 2022, to $11,247 as of June 30, 2023, with the long-term portion net of current liabilities at $7,761[57] Cash Flow and Investments - The company’s cash and cash equivalents were $312.4 million as of June 30, 2023, up from $301.9 million at the end of 2022[14] - Net cash provided by operating activities decreased to $494,606, down 38.3% from $802,056 in the prior year[18] - The company reported a net cash used in investing activities of $(71,301), a reduction of 51.6% compared to $(147,149) in the previous year[18] - Cash and cash equivalents at the end of the period were $383,699, up 95.1% from $196,500 at the end of June 2022[20] - Total cash and cash equivalents and restricted cash at the end of the period was $383,699, compared to $196,500 in the prior year, marking a 95.1% increase[20] Coal Revenue and Sales - Total coal revenues for the three months ended June 30, 2023, were $853,807, a decrease of 34.5% compared to $1,334,258 for the same period in 2022[32][33] - Export coal revenues for the six months ended June 30, 2023, totaled $1,294,703, down from $2,040,528 in the same period of 2022, representing a decline of 36.6%[34][35] - The Company’s domestic coal revenues for the three months ended June 30, 2023, were $237,235, compared to $188,255 for the same period in 2022, reflecting an increase of 26%[32][33] - The Company’s total coal revenues for the six months ended June 30, 2023, were $1,760,505, down from $2,403,996 in the same period of 2022, indicating a decrease of 26.8%[34][35] - Coal revenues decreased by $480.5 million, or 36.0%, to $853.8 million for the three months ended June 30, 2023, compared to $1.3 billion in the same period of 2022[149] Expenses and Costs - Capital expenditures increased significantly to $(129,111) from $(70,012), reflecting a 84.5% rise year-over-year[18] - Cost of coal sales decreased by $43.9 million, or 7.0%, to $583.5 million for the three months ended June 30, 2023, from $627.4 million in the prior year[151] - Total cost of coal sales was $1,158.9 million for the six months ended June 30, 2023, compared to $1,200.9 million in the prior year[194] - Selling, general and administrative expenses increased by $5.0 million, or 14.9%, for the six months ended June 30, 2023, primarily due to increases in stock compensation and wages[185] Dividends and Share Repurchases - The company declared a cash dividend of $0.50 per share during the quarter, totaling $(7,233) in dividends paid[23] - The Company declared a dividend of $0.44 per share for the six months ended June 30, 2023, with a total dividend paid of $6,602, and a subsequent dividend of $0.50 per share with a total of $7,001 paid[50] - The Company has repurchased a total of 5,431,356 shares for approximately $809,320 under its share repurchase program, which has a total authorization of $1,200,000[47] Market Conditions and Economic Indicators - The Australian Premium Low Volatile index decreased from $300.00 per metric ton at the start of Q2 to $233.00 per metric ton by June 30, 2023, reflecting a decline of 22.3%[129] - The U.S. East Coast Low Volatile index fell from $284.00 per metric ton at the beginning of April to $227.00 per metric ton at the end of Q2, a decrease of 20.1%[129] - The world Purchasing Managers' Index (PMI) declined to 48.8 in June 2023, indicating continued economic contraction in many regions[130] - Global crude steel production in June 2023 was 158.8 million metric tons, a slight decrease of 0.1% from June 2022[131] Operational Metrics - The Company operates 22 active mines and 8 coal preparation and load-out facilities, employing approximately 3,980 people[134] - In Q2 2023, metallurgical coal sales were 3.9 million tons, accounting for approximately 90% of total coal sales volume, compared to 3.8 million tons in Q2 2022[135] - The Company had 336.7 million tons of reserves, including 322.7 million tons of proven and probable metallurgical reserves[134] Tax and Compliance - The Company recorded an income tax expense of $76,009 on income before income taxes of $528,135 for the six months ended June 30, 2023[76] - The effective tax rate for the three months ended June 30, 2023, was impacted by the permanent effects of percentage depletion and foreign-derived intangible income deductions[158] - The Company is in compliance with all covenants under its ABL Agreement as of June 30, 2023[59]