Alpha: Alpha Announces Financial Results for Fourth Quarter and Full Year 2024

In This Article: BRISTOL, Tenn. , Feb. 28, 2025 /PRNewswire/ -- Alpha Metallurgical Resources, Inc. (NYSE: AMR), a leading U.S. supplier of metallurgical products for the steel industry, today reported financial results for the fourth quarter and full year ending December 31, 2024 . (PRNewsfoto/Alpha Metallurgical Resources, Inc.) "As expected, the weak metallurgical coal market negatively impacted our results for the fourth quarter," said Andy Eidson , Alpha's chief executive officer. "We continue to see lower levels of met coal demand which is keeping pricing subdued. As always, we strive to accurately assess the landscape and take actions as necessary to match our business to those realities. The adjustments we're announcing today to our full year 2025 guidance for met coal shipment volumes and costs of coal sales are reflective of lower amounts of purchased coal than previously expected, as well as the impact of severe weather in both January and February on our operating plans. As we look ahead, our priorities continue to be the safe operation of our mines and the financial protection of the business against these difficult market circumstances." Financial Performance Alpha reported a net loss of $2.1 million , or $0.16 per diluted share, for the fourth quarter 2024, as compared to net income of $3.8 million , or $0.29 per diluted share, in the third quarter. Total Adjusted EBITDA was $53.2 million for the fourth quarter, compared to $49.0 million in the third quarter. Coal Revenues Coal Sales Realization (1) (per ton) Three months ended Dec. 31, 2024 Sept. 30, 2024 Met Segment $127.84 $132.76 __________________________________ 1. Represents Non-GAAP coal sales realization which is defined and reconciled under "Non-GAAP Financial Measures" and "Results of Operations." Fourth quarter net realized pricing for the Met segment was $127.84 per ton. The table below provides a breakdown of our Met segment coal sold in the fourth quarter by pricing mechanism. (in millions, except per ton data) Met Segment Sales Three months ended Dec. 31, 2024 Tons Sold Coal Revenues Realization/ton (1) % of Met Tons Sold Export - Other Pricing Mechanisms 1.7 $206.9 $122.24 46 % Domestic 1.0 $156.4 $158.93 26 % Export - Australian Indexed 1.0 $130.3 $124.71 28 % Total Met Coal Revenues 3.7 $493.7 $132.63 100 % Thermal Coal Revenues 0.3 $25.6 $75.39 Total Met Segment Coal Revenues (excl. freight & handling) (1) 4.1 $519.3 $127.84 __________________________________ 1. Represents Non-GAAP coal sales realization which is defined and reconciled under "Non-GAAP Financial Measures" and "Results of Operations." Cost of Coal Sales (in millions, except per ton data) Three months ended Dec. 31, 2024 Sept. 30, 2024 Met Segment $540.8 $598.7 Met Segment (excl. freight & handling/idle) (1) $442.0 $474.0 (per ton) Met Segment (1) $108.82 $114.27 __________________________________ 1. Represents Non-GAAP cost of coal sales and Non-GAAP cost of coal sales per ton which is defined and reconciled under "Non-GAAP Financial Measures" and "Results of Operations." Alpha's Met segment cost of coal sales decreased to an average of $108.82 per ton in the fourth quarter, compared to $114.27 per ton in the third quarter. Liquidity and Capital Resources Cash provided by operating activities in the fourth quarter decreased to $56.3 million as compared to $189.5 million in the third quarter. The third quarter benefited from a decrease in working capital of $144.5 million . Capital expenditures for the fourth quarter were $42.7 million compared to $31.5 million for the third quarter. As of December 31, 2024, the company had total liquidity of $519.4 million , including cash and cash equivalents of $481.6 million and $112.9 million of unused availability under the asset-based revolving credit facility (ABL), partially offset by a minimum required liquidity of $75.0 million as required by the ABL. As of December 31, 2024, the company had no borrowings and $42.1 million in letters of credit outstanding under the ABL, a reduction of $15.0 million in letters of credit outstanding as compared to the third quarter. Total long-term debt, including the current portion of long-term debt as of December 31, 2024, was $5.8 million . Share Repurchase Program As previously announced, Alpha's board of directors authorized a share repurchase program allowing for the expenditure of up to $1.5 billion for the repurchase of the company's common stock. As of February 21, 2025 , the company has acquired approximately 6.6 million shares of common stock at a cost of approximately $1.1 billion , or approximately $165.74 per share. The number of common stock shares outstanding as of February 21, 2025 was 13,052,684. The outstanding share count does not include the potentially dilutive effect of unvested equity awards. The timing and amount of share repurchases will continue to be determined by the company's management based on its evaluation of market conditions, the trading price of the stock, applicable legal requirements, compliance with the provisions of the company's debt agreements, and other factors. 2025 Guidance Adjustments and Performance Update Alpha is reducing its full-year 2025 guidance for metallurgical coal shipment volumes. The new metallurgical coal shipments guidance range is 14.5 million tons to 15.5 million tons, down from the prior range of 15.0 million tons to 16.0 million tons. Additionally, the company is increasing its 2025 cost of coal sales guidance range to $103.00 to $110.00 per ton, up from the prior range of $103.00 to $108.00 per ton. As of February 20, 2025 , Alpha has committed and priced approximately 32% of its metallurgical coal for 2025 at an average price of $143.81 per ton and 95% of its thermal coal for the year at an average price of $80.74 per ton. 2025 Guidance in millions of tons Low High Metallurgical 14.5 15.5 Thermal 1.0 1.4 Met Segment - Total Shipments 15.5 16.9 Committed/Priced 1,2,3 Committed Average Price Metallurgical - Domestic $152.94 Metallurgical - Export $113.11 Metallurgical Total 32 % $143.81 Thermal 95 % $80.74 Met Segment 37 % $131.73 Committed/Unpriced 1,3 Committed Metallurgical Total 57 % Thermal - % Met Segment 53 % Costs per ton 4 Low High Met Segment $103.00 $110.00 In millions (except taxes) Low High SG&A 5 $53 $59 Idle Operations Expense $18 $28 Net Cash Interest Income $2 $10 DD&A $165 $185 Capital Expenditures $152 $182 Capital Contributions to Equity Affiliates 6 $44 $54 Cash Tax Rate 0 % 5 % Notes: 1. Based on committed and priced coal shipments as of February 20, 2025. Committed percentage based on the midpoint of shipment guidance range. 2. Actual average per-ton realizations on committed and priced tons recognized in future periods may vary based on actual freight expense in future periods relative to assumed freight expense embedded in projected average per-ton realizations. 3. Includes estimates of future coal shipments based upon contract terms and anticipated delivery schedules. Actual coal shipments may vary from these estimates. 4. Note: The Company is unable to present a quantitative reconciliation of its forward-looking non-GAAP cost of coal sales per ton sold financial measures to the most directly comparable GAAP measures without unreasonable efforts due to the inherent difficulty in forecasting and quantifying with reasonable accuracy significant items required for the reconciliation. The most directly comparable GAAP measure, GAAP cost of sales, is not accessible without unreasonable efforts on a forward-looking basis. The reconciling items include freight and handling costs, which are a component of GAAP cost of sales. Management is unable to predict without unreasonable efforts freight and handling costs due to uncertainty as to the end market and FOB point for uncommitted sales volumes and the final shipping point for export shipments. These amounts have varied historically and may continue to vary significantly from quarter to quarter and material changes to these items could have a significant effect on our future GAAP results. 5. Excludes expenses related to non-cash stock compensation and non-recurring expenses. 6. Includes contributions to fund normal operations at our DTA export facility and expected capital investments related to the facility upgrades. Annual Meeting of Stockholders The board of directors has scheduled the annual meeting of stockholders for May 7, 2025 . Conference Call The company plans to hold a conference call regarding its fourth quarter results on February 28, 2025, at 10:00 a.m. Eastern time . The conference call will be available live on the investor section of the company's website at https://alphametresources.com/investors . Analysts who would like to participate in the conference call should dial 877-407-0832 (domestic toll-free) or 201-689-8433 (international) approximately 15 minutes prior to start time. About Alpha Metallurgical Resources Alpha Metallurgical Resources (NYSE: AMR) is a Tennessee -based mining company with operations across Virginia and West Virginia . With customers across the globe, high-quality reserves and significant port capacity, Alpha reliably supplies metallurgical products to the steel industry. For more information, visit www.AlphaMetResources.com . Forward-Looking Statements This news release includes forward-looking statements. These forward-looking statements are based on Alpha's expectations and beliefs concerning future events and involve risks and uncertainties that may cause actual results to differ materially from current expectations. These factors are difficult to predict accurately and may be beyond Alpha's control. Forward-looking statements in this news release or elsewhere speak only as of the date made. New uncertainties and risks arise from time to time, and it is impossible for Alpha to predict these events or how they may affect Alpha. Except as required by law, Alpha has no duty to, and does not intend to, update