Alliance Resource (ARLP) Q1 Earnings & Sales Beat Estimates

Core Insights - Alliance Resource Partners, L.P. (ARLP) reported first-quarter 2024 operating earnings per unit (EPU) of $1.21, exceeding the Zacks Consensus Estimate of $1.01 by 19.8%, but down 16.6% from $1.45 in the same quarter last year [1] - Total revenues reached $651.7 million, surpassing the Zacks Consensus Estimate of $625 million by 4.3%, but decreased 1.7% from $662.9 million year-over-year [2] Financial Performance - Total operating expenses were $491.4 million, an increase of 7.8% year-over-year, with operating expenses (excluding depreciation, depletion, and amortization) at $363.9 million, up 7.4% [3] - Income from operations was $160.3 million, down 22.7% from the prior-year quarter [3] - Interest expense decreased to $7.7 million from $12.7 million in the prior-year period [3] Cash Flow and Debt - Cash and cash equivalents stood at $133.9 million as of March 31, 2024, compared to $59.8 million as of December 31, 2023 [4] - Long-term debt increased to $354.6 million as of March 31, 2024, from $316.8 million as of December 31, 2023 [4] - Cash provided by operating activities for the first three months of 2024 totaled $209.7 million, down from $221.7 million in the year-ago period [4] Guidance - Alliance Resource expects total sales for 2024 to be between 34-35.8 million short tons, with coal sales prices projected to be in the range of $61.75-$63.75 per ton [5] - Total capital expenditures for 2024 are anticipated to be between $450-$500 million, with net interest expense projected at $20-$25 million [5] Market Position - Alliance Resource currently holds a Zacks Rank 4 (Sell) [6]