Alliance Resource Partners(US:ARLP)2023-05-08 16:00Revenue Growth - Total revenues for the 2023 Quarter increased 43.0% to $662.9 million compared to $463.4 million for the 2022 Quarter, driven by a 49.0% increase in coal sales to $578.8 million[118] - Coal sales price per ton increased by 43.6% to $68.34 in the 2023 Quarter from $47.58 in the 2022 Quarter, contributing $175.8 million to revenue growth[118] - Total coal sales increased by 49.0% to $578.8 million in Q1 2023 from $388.4 million in Q1 2022, reflecting higher sales prices and volumes[129] Net Income and Earnings - Net income attributable to ARLP for the 2023 Quarter was $191.2 million, or $1.45 per unit, compared to $38.1 million, or $0.28 per unit, for the 2022 Quarter[119] Segment Performance - Segment Adjusted EBITDA for coal operations increased 28.3% to $335.9 million in the 2023 Quarter, with a per ton increase of 23.7% to $39.66[119] - Illinois Basin Coal Operations' Segment Adjusted EBITDA increased to $132.0 million in Q1 2023 from $78.2 million in Q1 2022, a rise of 68.8%[129] - Appalachia Coal Operations' Segment Adjusted EBITDA surged 128.1% to $116.6 million in Q1 2023 from $51.1 million in Q1 2022, driven by a 79.9% increase in coal sales to $241.9 million[130] - Total Segment Adjusted EBITDA for the company reached $291.9 million in Q1 2023, up 68.6% from $173.2 million in Q1 2022[135] Operating Expenses - Total operating expenses for the 2023 Quarter rose to $455.6 million, up from $374.2 million in the 2022 Quarter, primarily due to increased coal sales volumes and inflation[118] - Labor and benefit expenses per ton produced increased 26.5% to $11.88 in the 2023 Quarter, primarily due to higher incentive benefits and direct labor costs[119] - Material and supplies expenses per ton produced rose 12.6% to $13.99 in the 2023 Quarter, reflecting increases in various operational costs[120] - Maintenance expenses per ton produced increased 37.9% to $4.44 in the 2023 Quarter, driven by inflationary pressures[120] - Segment Adjusted EBITDA Expense increased by 29.8% to $339.3 million in Q1 2023 from $261.5 million in Q1 2022, primarily due to higher sales volumes and inflationary pressures[135] Other Revenues - Other revenues increased to $19.4 million in the 2023 Quarter from $12.3 million in the 2022 Quarter, mainly due to higher sales of mining technology products[121] - Other revenues totaled $19.4 million in Q1 2023, a 57.8% increase from $12.3 million in Q1 2022, driven by higher intercompany coal royalties and corporate activities[135] Cash Flow and Investments - Cash provided by operating activities increased to $223.3 million for the 2023 Quarter, up from $90.6 million in the 2022 Quarter, primarily due to higher net income and favorable working capital changes[145] - Net cash used in investing activities rose to $148.7 million for the 2023 Quarter, compared to $45.5 million in the 2022 Quarter, mainly due to increased capital expenditures and the JC Resources Acquisition[146] - Net cash used in financing activities was $99.3 million for the 2023 Quarter, up from $39.3 million in the 2022 Quarter, driven by higher cash distributions to unitholders and senior notes repurchases[147] Capital Expenditures and Financing - The company anticipates total capital expenditures for 2023 to be in the range of $400.0 million to $460.0 million, with average estimated annual maintenance capital expenditures projected at approximately $7.05 per ton produced[148] - The company closed the JC Resources Acquisition for $72.3 million on February 22, 2023, funded with cash on hand[140] - The company has a $425 million revolving credit facility and a $75 million term loan under a Credit Agreement that matures on March 9, 2027[141] - The company repurchased and retired 860,060 units at an average price of $21.17 for a total of $18.2 million during the three months ended March 31, 2023[144] - The company repurchased $26.6 million of its 7.5% senior notes due 2025 during the 2023 Quarter, with an outstanding principal amount of $373.4 million remaining[145] - The company extended the term of its $60.0 million accounts receivable securitization facility from January 2023 to January 2024[142]