Natural Resource Partners L.P. (NYSE:NRP) today reported second quarter 2020 results as follows:
For the Three Months Ended | Last Twelve
| |||||||||||
June 30, | June 30, | |||||||||||
(In thousands) (Unaudited) | 2020 | 2019 | 2020 | |||||||||
Net income (loss) from continuing operations | $ | (125,501 | ) | $ | 19,106 | $ | (187,007 | ) | ||||
Asset impairments | 132,283 | — | 280,497 | |||||||||
Net income from continuing operations excluding asset impairments (1) | $ | 6,782 | $ | 19,106 | $ | 93,490 | ||||||
Adjusted EBITDA (1) | 29,336 | 62,791 | 145,256 | |||||||||
Cash flow provided by (used in) continuing operations: | ||||||||||||
Operating activities | 19,935 | 53,359 | 111,218 | |||||||||
Investing activities | 365 | 698 | 7,463 | |||||||||
Financing activities | (9,978 | ) | (97,989) | (93,628 | ) | |||||||
Distributable cash flow (1) | 21,300 | 54,013 | 119,442 | |||||||||
Free cash flow (1) | 19,793 | 53,810 | 112,177 | |||||||||
Cash flow cushion (last twelve months) (1) | 17,502 | |||||||||||
| ____________________ | ||||||||||||
| (1) | See "Non-GAAP Financial Measures" and reconciliation tables at the end of this release. |
"NRP continues to operate under government guidelines and employ remote work protocols. Our people are safe and the company is conducting business as usual," said Craig Nunez, NRP's President and Chief Operating Officer. "While the COVID-19 pandemic continues to have a significant negative impact on demand for steel, electricity and glass, which translates to lower demand for coal and soda ash, we continue to believe that our ample liquidity, continued free cash flow generation and the fact that our parent company bonds do not mature until 2025 will provide us with the financial flexibility and margin of safety necessary to manage through the downturn.”
NRP's liquidity was $210.8 million at June 30, 2020, consisting of $110.8 million of cash and $100.0 million of borrowing capacity available under its revolving credit facility.
NRP announced today that the Board of Directors of its general partner declared a second quarter 2020 cash distribution of $0.45 per common unit of NRP to be paid on August 26, 2020 to unitholders of record on August 19, 2020. The Board also declared a second quarter 2020 cash distribution on NRP’s 12.0% Class A Convertible Preferred Units, totaling $7.5 million. Future distributions on NRP's common and preferred units will be determined on a quarterly basis by the Board of Directors. The Board of Directors considers numerous factors each quarter in determining cash distributions, including profitability, cash flow, debt service obligations, market conditions and outlook, and the level of cash reserves that the Board determines is necessary for future operating and capital needs.
Segment Performance
Coal Royalty and Other
Revenues and other income in the second quarter of 2020 were lower by $36.1 million and distributable cash flow and free cash flow were $23.2 million and $24.5 million lower, respectively, as compared to the prior year quarter. This decrease is primarily a result of a weakened market for metallurgical coal as compared to the prior year quarter due to a decline in global steel demand. As a result, both sales volumes and prices for metallurgical coal sold were lower in the second quarter of 2020 compared to the prior year quarter. Approximately 80% of coal royalty revenues and approximately 70% of coal royalty sales volumes were derived from metallurgical coal during the three months ended June 30, 2020. In addition, weaker domestic and export thermal coal markets compared to the prior year period resulted in lower revenue from our thermal coal properties. Domestic and export thermal coal markets remained challenged by lower utility demand, continued low natural gas prices and the secular shift to renewable energy. Furthermore, the COVID-19 pandemic has compounded already weak coal pricing and demand, and NRP's coal lessees are seeing significant negative impacts on their businesses.
NRP worked with its largest lessee, Foresight Energy, to help them to develop a plan that enabled Foresight to emerge from bankruptcy in the second quarter of 2020. NRP entered into lease amendments pursuant to which Foresight agreed to pay NRP fixed cash payments of $48.75 million in 2020 and $42.0 million in 2021 to satisfy all obligations arising out of the existing various coal mining leases and transportation infrastructure fee agreements between NRP and Foresight Energy for calendar years 2020 and 2021. Through the first six months of 2020, NRP received $21.2 million of the $48.75 million due in 2020. Beginning in January 2022, Foresight payment obligations will be calculated in accordance with the provisions of the original lease agreements, except with respect to the Macoupin mine. While the Macoupin mine is idled, Foresight will pay an annual fee of $2.0 million to NRP each year through 2023 to continue to lease NRP's coal reserves at Macoupin.
NRP also recorded $132.3 million in non-cash asset impairment expense in the second quarter of 2020 primarily related to weakened coal markets that was compounded by the COVID-19 pandemic and resulted in the termination of certain coal leases, changes to lessee mine plans resulting in permanent moves off of certain coal properties and decreased oil and gas drilling activity which negatively impacted the outlook for NRP's frac sand properties.
Soda Ash
Ciner Wyoming was negatively impacted by the COVID-19 pandemic as lower activity in the global auto, container and construction industries reduced demand for glass and soda ash. Revenues and other income in the second quarter of 2020 were lower by $14.4 million compared to the prior year quarter primarily due to a combination of lower pricing and volumes sold. Distributions received from Ciner Wyoming were $7.1 million in the second quarter of 2020 as compared to $9.3 million in the second quarter of 2019.
Global soda ash prices are down roughly 25% from a year ago, to levels that NRP believes are below the cost of production of the world’s synthetic soda ash producers and some of the natural soda ash producers. NRP expects the soda ash industry to face significant headwinds until the global economy gets back on track. While NRP believes Ciner Wyoming's facility is competitively positioned as one of the lowest cost producers of soda ash in the world, NRP expects soda ash markets to continue to be challenged over the next several quarters.
Ciner Wyoming continues to develop plans for a significant capacity expansion capital project. However, they have delayed the timing of significant costs related to this project until they have more clarity and visibility into the impact of the COVID-19 pandemic on its business. In addition, in order to achieve greater financial flexibility during the COVID-19 pandemic, Ciner Wyoming suspended its quarterly distribution for the second quarter which would have been paid to NRP in August 2020. Ciner Wyoming will continue to evaluate on a quarterly basis whether to reinstate the distribution, which will be dependent in part on its cash reserves, liquidity, total debt levels and anticipated capital expenditures.
Corporate and Financing
Corporate and financing costs were $32.0 million lower in the second quarter of 2020 compared to the prior year quarter primarily due to the loss on extinguishment of debt of $29.3 million related to the refinancing and extension of both NRP's 2022 Senior Notes and revolving credit facility in the second quarter of 2019, as well as lower interest expense as a result of less debt outstanding. Distributable cash flow and free cash flow were $7.3 million lower compared to the prior year quarter primarily due to the timing of interest payments on the parent company bonds that were refinanced in the second quarter of 2019. Interest payments are due in June and December on the new 9.125% Notes, compared to March and September on the previous 10.5% Notes. Additionally, NRP redeemed the $3.75 million of paid-in-kind preferred units in the second quarter of 2020.
Conference Call
A conference call will be held today at 9:00 a.m. ET. To register for the conference call, please use this link http://www.directeventreg.com/registration/event/5489831. After registering a confirmation will be sent via email, including dial in details and unique conference call codes for entry. Registration is open through the live call, however, to ensure you are connected for the full call we suggest registering at least 10 minutes prior to the start of the call. Investors may also listen to the call via the Investor Relations section of the NRP website at www.nrplp.com. To access the replay, please visit the Investor Relations section of NRP’s website.
Withholding Information for Foreign Investors
This release is intended to be a qualified notice under Treasury Regulation Section 1.1446-4(b). Brokers and nominees should treat one hundred percent (100.0%) of NRP's distributions to foreign investors as being attributable to income that is effectively connected with a United States trade or business. Accordingly, NRP's distributions to foreign investors are subject to federal income tax withholding at the highest applicable rate.
Company Profile
Natural Resource Partners L.P., a master limited partnership headquartered in Houston, TX, is a diversified natural resource company that owns, manages and leases a diversified portfolio of mineral properties in the United States including interests in coal, industrial minerals and other natural resources. In addition, NRP owns an equity investment in Ciner Wyoming LLC, a trona ore mining and soda ash production business.
For additional information, please contact Tiffany Sammis at 713-751-7515 or tsammis@nrplp.com. Further information about NRP is available on the Partnership’s website at http://www.nrplp.com.
Forward-Looking Statements
This press release includes “forward-looking statements” as defined by the Securities and Exchange Commission. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the Partnership expects, believes or anticipates will or may occur in the future are forward-looking statements. These statements are based on certain assumptions made by the Partnership based on its experience and perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Partnership. These risks include, among other things, statements regarding: the effects of the global COVID-19 pandemic; future distributions on the Partnership’s common and preferred units; the Partnership's business strategy; its liquidity and access to capital and financing sources; its financial strategy; prices of and demand for coal, trona and soda ash, and other natural resources; estimated revenues, expenses and results of operations; projected future performance by the Partnership's lessees, including Foresight Energy; Ciner Wyoming LLC’s trona mining and soda ash refinery operations; distributions from the soda ash joint venture; the impact of governmental policies, laws and regulations, as well as regulatory and legal proceedings involving the Partnership, and of scheduled or potential regulatory or legal changes; global and U.S. economic conditions; and other factors detailed in Natural Resource Partners’ Securities and Exchange Commission filings. Natural Resource Partners L.P. has no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
Non-GAAP Financial Measures
"Adjusted EBITDA" is a non-GAAP financial measure that we define as net income (loss) from continuing operations less equity earnings from unconsolidated investment, net income attributable to non-controlling interest and gain on reserve swap; plus total distributions from unconsolidated investment, interest expense, net, debt modification expense, loss on extinguishment of debt, depreciation, depletion and amortization and asset impairments. Adjusted EBITDA should not be considered an alternative to, or more meaningful than, net income or loss, net income or loss attributable to partners, operating income or loss, cash flows from operating activities or any other measure of financial performance presented in accordance with GAAP as measures of operating performance, liquidity or ability to service debt obligations. There are significant limitations to using Adjusted EBITDA as a measure of performance, including the inability to analyze the effect of certain recurring items that materially affect our net income (loss), the lack of comparability of results of operations of different companies and the different methods of calculating Adjusted EBITDA reported by different companies. In addition, Adjusted EBITDA presented below is not calculated or presented on the same basis as Consolidated EBITDA as defined in our partnership agreement or Consolidated EBITDDA as defined in Opco's debt agreements. Adjusted EBITDA is a supplemental performance measure used by our management and by external users of our financial statements, such as investors, commercial banks, research analysts and others to assess the financial performance of our assets without regard to financing methods, capital structure or historical cost basis.
“Distributable cash flow” or "DCF" is a non-GAAP financial measure that we define as net cash provided by (used in) operating activities of continuing operations plus distributions from unconsolidated investment in excess of cumulative earnings, proceeds from asset sales and disposals, including sales of discontinued operations, and return of long-term contract receivable; less maintenance capital expenditures and distributions to non-controlling interest. DCF is not a measure of financial performance under GAAP and should not be considered as an alternative to cash flows from operating, investing or financing activities. DCF may not be calculated the same for us as for other companies. In addition, distributable cash flow is not calculated or presented on the same basis as distributable cash flow as defined in our partnership agreement, which is used as a metric to determine whether we are able to increase quarterly distributions to our common unitholders. Distributable cash flow is a supplemental liquidity measure used by our management and by external users of our financial statements, such as investors, commercial banks, research analysts and others to assess our ability to make cash distributions and repay debt.
“Free cash flow” or "FCF" is a non-GAAP financial measure that we define as net cash provided by (used in) operating activities of continuing operations plus distributions from unconsolidated investment in excess of cumulative earnings and return of long-term contract receivable; less maintenance and expansion capital expenditures, cash flow used in acquisition costs classified as investing or financing activities and distributions to non-controlling interest. FCF is calculated before mandatory debt repayments. Free cash flow is not a measure of financial performance under GAAP and should not be considered as an alternative to cash flows from operating, investing or financing activities. Free cash flow may not be calculated the same for us as for other companies. Free cash flow is a supplemental liquidity measure used by our management and by external users of our financial statements, such as investors, commercial banks, research analysts and others to assess our ability to make cash distributions and repay debt.
"Cash flow cushion" is a non-GAAP financial measure that we define as free cash flow less one-time beneficial items, mandatory Opco debt repayments, preferred unit distributions and common unit distributions. Cash flow cushion is not a measure of financial performance under GAAP and should not be considered as an alternative to cash flows from operating, investing or financing activities. Cash flow cushion is a supplemental liquidity measure used by our management to assess the Partnership's ability to make or raise cash distributions to our common and preferred unitholders and our general partner and repay debt or redeem preferred units.
"Return on capital employed" or "ROCE" is a non-GAAP financial measure that we define as net income (loss) from continuing operations plus financing costs (interest expense plus loss on extinguishment of debt) divided by the sum of equity excluding equity of discontinued operations, and debt. Return on capital employed should not be considered an alternative to, or more meaningful than, net income or loss, net income or loss attributable to partners, operating income or loss, cash flows from operating activities or any other measure of financial performance presented in accordance with GAAP as measures of operating performance, liquidity or ability to service debt obligations. Return on capital employed is a supplemental performance measure used by our management team that measures our profitability and efficiency with which our capital is employed. The measure provides an indication of operating performance before the impact of leverage in the capital structure.
-Financial Tables and Reconciliation of Non-GAAP Measures Follow-
Natural Resource Partners L.P. Financial Tables (Unaudited) | ||||||||||||||||||||||||
Consolidated Statements of Comprehensive Income (Loss) | ||||||||||||||||||||||||
For the Three Months Ended | For the Six Months Ended | |||||||||||||||||||||||
June 30, | March 31, | June 30, | ||||||||||||||||||||||
(In thousands, except per unit data) | 2020 | 2019 | 2020 | 2020 | 2019 | |||||||||||||||||||
Revenues and other income | ||||||||||||||||||||||||
Coal royalty and other | $ | 31,666 | $ | 64,616 | $ | 31,433 | $ | 63,099 | $ | 114,118 | ||||||||||||||
Transportation and processing services | 1,938 | 5,274 | 2,509 | 4,447 | 10,875 | |||||||||||||||||||
Equity in earnings (loss) of Ciner Wyoming | (3,058 | ) | 11,333 | 6,272 | 3,214 | 23,015 | ||||||||||||||||||
Gain on asset sales and disposals | 465 | 246 | — | 465 | 502 | |||||||||||||||||||
Total revenues and other income | $ | 31,011 | $ | 81,469 | $ | 40,214 | $ | 71,225 | $ | 148,510 | ||||||||||||||
Operating expenses | ||||||||||||||||||||||||
Operating and maintenance expenses | $ | 8,217 | $ | 12,459 | $ | 5,202 | $ | 13,419 | $ | 20,819 | ||||||||||||||
Depreciation, depletion and amortization | 2,062 | 3,970 | 2,012 | 4,074 | 8,362 | |||||||||||||||||||
General and administrative expenses | 3,621 | 4,196 | 3,913 | 7,534 | 8,546 | |||||||||||||||||||
Asset impairments | 132,283 | — | — | 132,283 | — | |||||||||||||||||||
Total operating expenses | $ | 146,183 | $ | 20,625 | $ | 11,127 | $ | 157,310 | $ | 37,727 | ||||||||||||||
Income (loss) from operations | $ | (115,172 | ) | $ | 60,844 | $ | 29,087 | $ | (86,085 | ) | $ | 110,783 | ||||||||||||
Other expenses, net | ||||||||||||||||||||||||
Interest expense, net | $ | (10,329 | ) | $ | (12,456 | ) | $ | (10,308 | ) | $ | (20,637 | ) | $ | (26,630 | ) | |||||||||
Loss on extinguishment of debt | — | (29,282 | ) | — | — | (29,282 | ) | |||||||||||||||||
Total other expenses, net | $ | (10,329 | ) | $ | (41,738 | ) | $ | (10,308 | ) | $ | (20,637 | ) | $ | (55,912 | ) | |||||||||
Net income (loss) from continuing operations | $ | (125,501 | ) | $ | 19,106 | $ | 18,779 | $ | (106,722 | ) | $ | 54,871 | ||||||||||||
Income from discontinued operations | — | 245 | — | — | 199 | |||||||||||||||||||
Net income (loss) | $ | (125,501 | ) | $ | 19,351 | $ | 18,779 | $ | (106,722 | ) | $ | 55,070 | ||||||||||||
Less: income attributable to preferred unitholders | (7,613 | ) | (7,500 | ) | (7,500 | ) | (15,113 | ) | (15,000 | ) | ||||||||||||||
Net income (loss) attributable to common unitholders and general partner | $ | (133,114 | ) | $ | 11,851 | $ | 11,279 | $ | (121,835 | ) | $ | 40,070 | ||||||||||||
Net income (loss) attributable to common unitholders | $ | (130,452 | ) | $ | 11,614 | $ | 11,053 | $ | (119,398 | ) | $ | 39,269 | ||||||||||||
Net income (loss) attributable to the general partner | (2,662 | ) | 237 | 226 | (2,437 | ) | 801 | |||||||||||||||||
Income (loss) from continuing operations per common unit | ||||||||||||||||||||||||
Basic | $ | (10.64 | ) | $ | 0.93 | $ | 0.90 | $ | (9.74 | ) | $ | 3.19 | ||||||||||||
Diluted | (10.64 | ) | 0.85 | 0.52 | (9.74 | ) | 2.58 | |||||||||||||||||
Net income (loss) per common unit | ||||||||||||||||||||||||
Basic | $ | (10.64 | ) | $ | 0.95 | $ | 0.90 | $ | (9.74 | ) | $ | 3.20 | ||||||||||||
Diluted | (10.64 | ) | 0.87 | 0.52 | (9.74 | ) | 2.59 | |||||||||||||||||
Net income (loss) | $ | (125,501 | ) | $ | 19,351 | $ | 18,779 | $ | (106,722 | ) | $ | 55,070 | ||||||||||||
Comprehensive income (loss) from unconsolidated investment and other | 1,359 | (825 | ) | (1,023 | ) | 336 | 180 | |||||||||||||||||
Comprehensive income (loss) | $ | (124,142 | ) | $ | 18,526 | 17,756 | $ | (106,386 | ) | $ | 55,250 | |||||||||||||
Natural Resource Partners L.P. Financial Tables (Unaudited) | ||||||||||||||||||||||||
Consolidated Statements of Cash Flows | ||||||||||||||||||||||||
For the Three Months Ended | For the Six Months Ended | |||||||||||||||||||||||
June 30, | March 31, | June 30, | ||||||||||||||||||||||
(In thousands) | 2020 | 2019 | 2020 | 2020 | 2019 | |||||||||||||||||||
Cash flows from operating activities | ||||||||||||||||||||||||
Net income (loss) | $ | (125,501 | ) | $ | 19,351 | $ | 18,779 | $ | (106,722 | ) | $ | 55,070 | ||||||||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities of continuing operations: | ||||||||||||||||||||||||
Depreciation, depletion and amortization | 2,062 | 3,970 | 2,012 | 4,074 | 8,362 | |||||||||||||||||||
Distributions from unconsolidated investment | 7,105 | 9,310 | 7,105 | 14,210 | 19,110 | |||||||||||||||||||
Equity earnings from unconsolidated investment | 3,058 | (11,333 | ) | (6,272 | ) | (3,214 | ) | (23,015 | ) | |||||||||||||||
Gain on asset sales and disposals | (465 | ) | (246 | ) | — | (465 | ) | (502 | ) | |||||||||||||||
Loss on extinguishment of debt | — | 29,282 | — | — | 29,282 | |||||||||||||||||||
Income from discontinued operations | — | (245 | ) | — | — | (199 | ) | |||||||||||||||||
Asset impairments | 132,283 | — | — | 132,283 | — | |||||||||||||||||||
Bad debt expense | 3,847 | 6,681 | (190 | ) | 3,657 | 6,691 | ||||||||||||||||||
Unit-based compensation expense | 924 | 475 | 729 | 1,653 | 1,376 | |||||||||||||||||||
Amortization of debt issuance costs and other | (1,534 | ) | 355 | 448 | (1,086 | ) | 2,151 | |||||||||||||||||
Change in operating assets and liabilities: | ||||||||||||||||||||||||
Accounts receivable | 8,446 | 1,830 | (5,073 | ) | 3,373 | (3,107 | ) | |||||||||||||||||
Accounts payable | (44 | ) | (561 | ) | 93 | 49 | (1,177 | ) | ||||||||||||||||
Accrued liabilities | (915 | ) | 642 | (2,861 | ) | (3,776 | ) | (5,522 | ) | |||||||||||||||
Accrued interest | (7,351 | ) | 2,889 | 7,060 | (291 | ) | (7,144 | ) | ||||||||||||||||
Deferred revenue | 2,202 | (7,218 | ) | 8,265 | 10,467 | (2,684 | ) | |||||||||||||||||
Other items, net | (4,182 | ) | (1,823 | ) | 60 | (4,122 | ) | (2,501 | ) | |||||||||||||||
Net cash provided by operating activities of continuing operations | $ | 19,935 | $ | 53,359 | $ | 30,155 | $ | 50,090 | $ | 76,191 | ||||||||||||||
Net cash provided by operating activities of discontinued operations | — | 234 | 1,706 | 1,706 | 355 | |||||||||||||||||||
Net cash provided by operating activities | $ | 19,935 | $ | 53,593 | $ | 31,861 | $ | 51,796 | $ | 76,546 | ||||||||||||||
Cash flows from investing activities | ||||||||||||||||||||||||
Proceeds from asset sales and disposals | $ | 507 | $ | 247 | $ | — | $ | 507 | $ | 503 | ||||||||||||||
Return of long-term contract receivable | 858 | 451 | 272 | 1,130 | 892 | |||||||||||||||||||
Acquisition of non-controlling interest in BRP | (1,000 | ) | — | — | (1,000 | ) | — | |||||||||||||||||
Net cash provided by investing activities of continuing operations | $ | 365 | $ | 698 | $ | 272 | $ | 637 | $ | 1,395 | ||||||||||||||
Net cash used in investing activities of discontinued operations | — | (44 | ) | (66 | ) | (66 | ) | (434 | ) | |||||||||||||||
Net cash provided by investing activities | $ | 365 | $ | 654 | $ | 206 | $ | 571 | $ | 961 | ||||||||||||||
Cash flows from financing activities | ||||||||||||||||||||||||
Debt borrowings | $ | — | $ | 300,000 | $ | — | $ | — | $ | 300,000 | ||||||||||||||
Debt repayments | (2,365 | ) | (348,002 | ) | (16,696 | ) | (19,061 | ) | (434,470 | ) | ||||||||||||||
Distributions to common unitholders and general partner | — | (16,265 | ) | (5,630 | ) | (5,630 | ) | (21,890 | ) | |||||||||||||||
Distributions to preferred unitholders | (7,613 | ) | (7,500 | ) | (7,500 | ) | (15,113 | ) | (15,000 | ) | ||||||||||||||
Contributions from (to) discontinued operations | — | 190 | 1,640 | 1,640 | (79 | ) | ||||||||||||||||||
Debt issuance costs and other | — | (26,412 | ) | — | — | (26,402 | ) | |||||||||||||||||
Net cash used in financing activities of continuing operations | $ | (9,978 | ) | $ | (97,989 | ) | $ | (28,186 | ) | $ | (38,164 | ) | $ | (197,841 | ) | |||||||||
Net cash provided by (used in) financing activities of discontinued operations | — | (190 | ) | (1,640 | ) | (1,640 | ) | 79 | ||||||||||||||||
Net cash used in financing activities | $ | (9,978 | ) | $ | (98,179 | ) | $ | (29,826 | ) | $ | (39,804 | ) | $ | (197,762 | ) | |||||||||
Net increase (decrease) in cash and cash equivalents | $ | 10,322 | $ | (43,932 | ) | $ | 2,241 | $ | 12,563 | $ | (120,255 | ) | ||||||||||||
Cash and cash equivalents at beginning of period | 100,506 | 129,707 | 98,265 | 98,265 | 206,030 | |||||||||||||||||||
Cash and cash equivalents at end of period | $ | 110,828 | $ | 85,775 | $ | 100,506 | $ | 110,828 | $ | 85,775 | ||||||||||||||
Supplemental cash flow information: | ||||||||||||||||||||||||
Cash paid during the period for interest | $ | 17,183 | $ | 9,623 | $ | 3,039 | $ | 20,222 | $ | 33,045 | ||||||||||||||
Plant, equipment and mineral rights funded with accounts payable or accrued liabilities | $ | 924 | $ | — | $ | — | $ | 924 | $ | — | ||||||||||||||
Natural Resource Partners L.P. Financial Tables (Unaudited) | |||||||||
Consolidated Balance Sheets | |||||||||
June 30, | December 31, | ||||||||
(In thousands, except unit data) | 2020 | 2019 | |||||||
ASSETS | |||||||||
Current assets | |||||||||
Cash and cash equivalents | $ | 110,828 | $ | 98,265 | |||||
Accounts receivable, net | 22,044 | 30,869 | |||||||
Prepaid expenses and other, net | 4,931 | 1,244 | |||||||
Current assets of discontinued operations | — | 1,706 | |||||||
Total current assets | $ | 137,803 | $ | 132,084 | |||||
Land | 24,008 | 24,008 | |||||||
Mineral rights, net | 468,863 | 605,096 | |||||||
Intangible assets, net | 17,608 | 17,687 | |||||||
Equity in unconsolidated investment | 252,420 | 263,080 | |||||||
Long-term contract receivable, net | 34,309 | 36,963 | |||||||
Other assets, net | 8,554 | 6,989 | |||||||
Total assets | $ | 943,565 | $ | 1,085,907 | |||||
LIABILITIES AND CAPITAL | |||||||||
Current liabilities | |||||||||
Accounts payable | $ | 1,228 | $ | 1,179 | |||||
Accrued liabilities | 6,027 | 8,764 | |||||||
Accrued interest | 2,026 | 2,316 | |||||||
Current portion of deferred revenue | 8,857 | 4,608 | |||||||
Current portion of long-term debt, net | 45,786 | 45,776 | |||||||
Current liabilities of discontinued operations | — | 65 | |||||||
Total current liabilities | $ | 63,924 | $ | 62,708 | |||||
Deferred revenue | 53,431 | 47,213 | |||||||
Long-term debt, net | 452,101 | 470,422 | |||||||
Other non-current liabilities | 4,901 | 4,949 | |||||||
Total liabilities | $ | 574,357 | $ | 585,292 | |||||
Commitments and contingencies | |||||||||
Class A Convertible Preferred Units (250,000 units issued and outstanding at June 30, 2020 and December 31, 2019, at $1,000 par value per unit; liquidation preference of $1,700 per unit at June 30, 2020 and $1,500 per unit at December 31, 2019) | $ | 164,587 | $ | 164,587 | |||||
Partners’ capital: | |||||||||
Common unitholders’ interest (12,261,199 units issued and outstanding at June 30, 2020 and December 31, 2019) | $ | 139,517 | $ | 271,471 | |||||
General partner’s interest | 546 | 3,270 | |||||||
Warrant holders' interest | 66,816 | 66,816 | |||||||
Accumulated other comprehensive loss | (2,258 | ) | (2,594 | ) | |||||
Total partners’ capital | $ | 204,621 | $ | 338,963 | |||||
Non-controlling interest | — | (2,935 | ) | ||||||
Total capital | $ | 204,621 | $ | 336,028 | |||||
Total liabilities and capital | $ | 943,565 | $ | 1,085,907 | |||||
Natural Resource Partners L.P. Financial Tables (Unaudited) | ||||||||||||||||||||||||||||||||||
Consolidated Statements of Partners' Capital | ||||||||||||||||||||||||||||||||||
Common Unitholders | General Partner | Warrant Holders | Accumulated
| Partners'
| Non-
| Total
| ||||||||||||||||||||||||||||
(In thousands) | Units | Amounts | ||||||||||||||||||||||||||||||||
Balance at December 31, 2019 | 12,261 | $ | 271,471 | $ | 3,270 | $ | 66,816 | $ | (2,594) | $ | 338,963 | $ | (2,935) | $ | 336,028 | |||||||||||||||||||
Cumulative effect of adoption of accounting standard | — | (3,833) | (78) | — | — | (3,911) | — | (3,911) | ||||||||||||||||||||||||||
Net income (1) | — | 18,403 | 376 | — | — | 18,779 | — | 18,779 | ||||||||||||||||||||||||||
Distributions to common unitholders and general partner | — | (5,517) | (113) | — | — | (5,630) | — | (5,630) | ||||||||||||||||||||||||||
Distributions to preferred unitholders | — | (7,350) | (150) | — | — | (7,500) | — | (7,500) | ||||||||||||||||||||||||||
Unit-based awards amortization and vesting | — | 673 | — | — | — | 673 | — | 673 | ||||||||||||||||||||||||||
Comprehensive loss from unconsolidated investment and other | — | — | — | — | (1,023) | (1,023) | — | (1,023) | ||||||||||||||||||||||||||
Balance at March 31, 2020 | 12,261 | $ | 273,847 | $ | 3,305 | $ | 66,816 | $ | (3,617) | $ | 340,351 | $ | (2,935) | $ | 337,416 | |||||||||||||||||||
Net loss (2) | — | (122,991) | (2,510) | — | — | (125,501) | — | (125,501) | ||||||||||||||||||||||||||
Distributions to preferred unitholders | — | (7,461) | (152) | — | — | (7,613) | — | (7,613) | ||||||||||||||||||||||||||
Purchase of non-controlling interest in BRP | — | (4,747) | (97) | — | (4,844) | 2,935 | (1,909) | |||||||||||||||||||||||||||
Unit-based awards amortization and vesting | — | 869 | — | — | — | 869 | — | 869 | ||||||||||||||||||||||||||
Comprehensive income from unconsolidated investment and other | — | — | — | — | 1,359 | 1,359 | — | 1,359 | ||||||||||||||||||||||||||
Balance at June 30, 2020 | 12,261 | $ | 139,517 | $ | 546 | $ | 66,816 | $ | (2,258) | $ | 204,621 | $ | — | $ | 204,621 | |||||||||||||||||||
____________________ | ||||||||||||||||||||||||||||||||||
| (1) | Net income includes $7.5 million attributable to preferred unitholders that accumulated during the period, of which $7.35 million is allocated to the common unitholders and $0.15 million is allocated to the general partner. | |
| (2) | Net loss includes $7.6 million attributable to preferred unitholders that accumulated during the period, of which $7.46 million is allocated to the common unitholders and $0.15 million is allocated to the general partner. |
Common Unitholders | General Partner | Warrant Holders | Accumulated
| Partners'
| Non-
| Total
| ||||||||||||||||||||||||||||
(In thousands) | Units | Amounts | ||||||||||||||||||||||||||||||||
Balance at December 31, 2018 | 12,249 | $ | 355,113 | $ | 5,014 | $ | 66,816 | $ | (3,462) | $ | 423,481 | $ | (2,935) | $ | 420,546 | |||||||||||||||||||
Net income (1) | — | 35,005 | 714 | — | — | 35,719 | — | 35,719 | ||||||||||||||||||||||||||
Distributions to common unitholders and general partner | — | (5,513) | (112) | — | — | (5,625) | — | (5,625) | ||||||||||||||||||||||||||
Distributions to preferred unitholders | — | (7,350) | (150) | — | — | (7,500) | — | (7,500) | ||||||||||||||||||||||||||
Issuance of unit-based awards | 12 | 486 | — | — | — | 486 | — | 486 | ||||||||||||||||||||||||||
Unit-based awards amortization and vesting | — | 399 | — | — | — | 399 | — | 399 | ||||||||||||||||||||||||||
Comprehensive income from unconsolidated investment and other | — | — | 10 | — | 1,005 | 1,015 | — | 1,015 | ||||||||||||||||||||||||||
Balance at March 31, 2019 | 12,261 | $ | 378,140 | $ | 5,476 | $ | 66,816 | $ | (2,457) | $ | 447,975 | $ | (2,935) | $ | 445,040 | |||||||||||||||||||
Net income (1) | — | 18,964 | 387 | — | — | 19,351 | — | 19,351 | ||||||||||||||||||||||||||
Distributions to common unitholders and general partner | — | (15,939) | (326) | — | — | (16,265) | — | (16,265) | ||||||||||||||||||||||||||
Distributions to preferred unitholders | — | (7,350) | (150) | — | — | (7,500) | — | (7,500) | ||||||||||||||||||||||||||
Unit-based awards amortization and vesting | — | 460 | — | — | — | 460 | — | 460 | ||||||||||||||||||||||||||
Comprehensive loss from unconsolidated investment and other | — | — | — | — | (825) | (825) | — | (825) | ||||||||||||||||||||||||||
Balance at June 30, 2019 | 12,261 | $ | 374,275 | $ | 5,387 | $ | 66,816 | $ | (3,282) | $ | 443,196 | $ | (2,935) | $ | 440,261 | |||||||||||||||||||
____________________ | ||||||||||||||||||||||||||||||||||
(1) | Net income includes $7.5 million attributable to preferred unitholders that accumulated during the period, of which $7.35 million is allocated to the common unitholders and $0.15 million is allocated to the general partner. |
Natural Resource Partners L.P. Financial Tables (Unaudited) | ||||||||||||||||
The following tables present NRP's unaudited business results by segment for the three months ended June 30, 2020 and 2019 and March 31, 2020: | ||||||||||||||||
Operating Segments | ||||||||||||||||
Coal Royalty
| Corporate and
| |||||||||||||||
(In thousands) | Soda Ash | Total | ||||||||||||||
For the Three Months Ended June 30, 2020 | ||||||||||||||||
Revenues | $ | 33,604 | $ | (3,058 | ) | $ | — | $ | 30,546 | |||||||
Gain on asset sales and disposals | 465 | — | — | 465 | ||||||||||||
Total revenues and other income (loss) | $ | 34,069 | $ | (3,058 | ) | $ | — | $ | 31,011 | |||||||
Asset impairments | $ | 132,283 | $ | — | $ | — | $ | 132,283 | ||||||||
Net income (loss) from continuing operations | (108,479 | ) | (3,087 | ) | (13,935 | ) | $ | (125,501 | ) | |||||||
Adjusted EBITDA (1) | $ | 25,881 | $ | 7,076 | $ | (3,621 | ) | $ | 29,336 | |||||||
Cash flow provided by (used in) continuing operations: | ||||||||||||||||
Operating activities | $ | 31,953 | $ | 7,077 | $ | (19,095 | ) | $ | 19,935 | |||||||
Investing activities | $ | 365 | $ | — | $ | — | $ | 365 | ||||||||
Financing activities | $ | — | $ | — | $ | (9,978 | ) | $ | (9,978 | ) | ||||||
Distributable cash flow (1) (2) | $ | 33,318 | $ | 7,077 | $ | (19,095 | ) | $ | 21,300 | |||||||
Free cash flow (1) | $ | 31,811 | $ | 7,077 | $ | (19,095 | ) | $ | 19,793 | |||||||
For the Three Months Ended June 30, 2019 | ||||||||||||||||
Revenues | $ | 69,890 | $ | 11,333 | $ | — | $ | 81,223 | ||||||||
Gain on asset sales and disposals | 246 | — | — | 246 | ||||||||||||
Total revenues and other income | $ | 70,136 | $ | 11,333 | $ | — | $ | 81,469 | ||||||||
Asset impairments | $ | — | $ | — | $ | — | $ | — | ||||||||
Net income (loss) from continuing operations | $ | 53,707 | $ | 11,333 | $ | (45,934 | ) | $ | 19,106 | |||||||
Adjusted EBITDA (1) | $ | 57,677 | $ | 9,310 | $ | (4,196 | ) | $ | 62,791 | |||||||
Cash flow provided by (used in) continuing operations: | ||||||||||||||||
Operating activities | $ | 55,811 | $ | 9,310 | $ | (11,762 | ) | $ | 53,359 | |||||||
Investing activities | $ | 698 | $ | — | $ | — | $ | 698 | ||||||||
Financing activities | $ | — | $ | — | $ | (97,989 | ) | $ | (97,989 | ) | ||||||
Distributable cash flow (1) (2) | $ | 56,509 | $ | 9,310 | $ | (11,762 | ) | $ | 54,013 | |||||||
Free cash flow (1) | $ | 56,262 | $ | 9,310 | $ | (11,762 | ) | $ | 53,810 | |||||||
For the Three Months Ended March 31, 2020 | ||||||||||||||||
Revenues | $ | 33,942 | $ | 6,272 | $ | — | $ | 40,214 | ||||||||
Loss on asset sales and disposals | — | — | — | — | ||||||||||||
Total revenues and other income | $ | 33,942 | $ | 6,272 | $ | — | $ | 40,214 | ||||||||
Asset impairments | $ | — | $ | — | $ | — | $ | — | ||||||||
Net income (loss) from continuing operations | $ | 26,744 | $ | 6,256 | $ | (14,221 | ) | $ | 18,779 | |||||||
Adjusted EBITDA (1) | $ | 28,756 | $ | 7,089 | $ | (3,913 | ) | $ | 31,932 | |||||||
Cash flow provided by (used in) continuing operations: | ||||||||||||||||
Operating activities | $ | 30,556 | $ | 7,089 | $ | (7,490 | ) | $ | 30,155 | |||||||
Investing activities | $ | 272 | $ | — | $ | — | $ | 272 | ||||||||
Financing activities | $ | — | $ | — | $ | (28,186 | ) | $ | (28,186 | ) | ||||||
Distributable cash flow (1) (2) | $ | 30,828 | $ | 7,089 | $ | (7,490 | ) | $ | 30,361 | |||||||
Free cash flow (1) | $ | 30,828 | $ | 7,089 | $ | (7,490 | ) | $ | 30,427 | |||||||
| ____________________ | ||||||||||||||||
| (1) | See "Non-GAAP Financial Measures" and reconciliation tables at the end of this release. | |
| (2) | Includes net proceeds from the sale of the construction aggregates business which are classified as investing cash flow from discontinued operations. |
Natural Resource Partners L.P. Financial Tables (Unaudited) | ||||||||||||||||||||
The following tables present NRP's unaudited business results by segment for the six months ended June 30, 2020 and 2019: | ||||||||||||||||||||
Operating Business Segments | ||||||||||||||||||||
Coal Royalty
| Corporate and
| |||||||||||||||||||
(In thousands) | Soda Ash | Total | ||||||||||||||||||
For the Six Months Ended June 30, 2020 | ||||||||||||||||||||
Revenues | $ | 67,546 | $ | 3,214 | $ | — | $ | 70,760 | ||||||||||||
Gain on asset sales and disposals | 465 | — | — | 465 | ||||||||||||||||
Total revenues and other income | $ | 68,011 | $ | 3,214 | $ | — | $ | 71,225 | ||||||||||||
Asset impairments | $ | 132,283 | $ | — | $ | — | $ | 132,283 | ||||||||||||
Net income (loss) from continuing operations | $ | (81,735) | $ | 3,169 | $ | (28,156) | $ | (106,722) | ||||||||||||
Adjusted EBITDA (1) | $ | 54,637 | $ | 14,165 | $ | (7,534) | $ | 61,268 | ||||||||||||
Cash flow provided by (used in) continuing operations: | ||||||||||||||||||||
Operating activities | $ | 62,509 | $ | 14,166 | $ | (26,585) | $ | 50,090 | ||||||||||||
Investing activities | $ | 637 | $ | — | $ | — | $ | 637 | ||||||||||||
Financing activities | $ | — | $ | — | $ | (38,164) | $ | (38,164) | ||||||||||||
Distributable cash flow (1) (2) | $ | 64,146 | $ | 14,166 | $ | (26,585) | $ | 51,661 | ||||||||||||
Free cash flow (1) | $ | 62,639 | $ | 14,166 | $ | (26,585) | $ | 50,220 | ||||||||||||
For the Six Months Ended June 30, 2019 | ||||||||||||||||||||
Revenues | $ | 124,993 | $ | 23,015 | $ | — | $ | 148,008 | ||||||||||||
Gain on asset sales and disposals | 502 | — | — | 502 | ||||||||||||||||
Total revenues and other income | $ | 125,495 | $ | 23,015 | $ | — | $ | 148,510 | ||||||||||||
Asset impairments | $ | — | $ | — | $ | — | $ | — | ||||||||||||
Net income (loss) from continuing operations | $ | 96,314 | $ | 23,015 | $ | (64,458) | $ | 54,871 | ||||||||||||
Adjusted EBITDA (1) | $ | 104,676 | $ | 19,110 | $ | (8,546) | $ | 115,240 | ||||||||||||
Cash flow provided by (used in) continuing operations: | ||||||||||||||||||||
Operating activities | $ | 98,727 | $ | 19,110 | $ | (41,646) | $ | 76,191 | ||||||||||||
Investing activities | $ | 1,395 | $ | — | $ | — | $ | 1,395 | ||||||||||||
Financing activities | $ | — | $ | — | $ | (197,841) | $ | (197,841) | ||||||||||||
Distributable cash flow (1) (2) | $ | 100,122 | $ | 19,110 | $ | (41,646) | $ | 77,152 | ||||||||||||
Free cash flow (1) | $ | 99,619 | $ | 19,110 | $ | (41,646) | $ | 77,083 | ||||||||||||
____________________ | ||||||||||||||||||||
| (1) | See "Non-GAAP Financial Measures" and reconciliation tables at the end of this release. |
| (2) | Includes net proceeds from the sale of the construction aggregates business which are classified as investing cash flow from discontinued operations. |
Natural Resource Partners L.P. Financial Tables (Unaudited) | ||||||||||||||||||||
Operating Statistics - Coal Royalty and Other | ||||||||||||||||||||
For the Three Months Ended | For the Six Months Ended | |||||||||||||||||||
June 30, | March 31, | June 30, | ||||||||||||||||||
(In thousands, except per ton data) | 2020 | 2019 | 2020 | 2020 | 2019 | |||||||||||||||
Coal sales volumes (tons) | ||||||||||||||||||||
Appalachia | ||||||||||||||||||||
Northern (1) | 87 | 1,625 | 327 | 414 | 2,484 | |||||||||||||||
Central | 2,463 | 3,825 | 2,933 | 5,396 | 7,247 | |||||||||||||||
Southern | 426 | 386 | 222 | 648 | 734 | |||||||||||||||
Total Appalachia | 2,976 | 5,836 | 3,482 | 6,458 | 10,465 | |||||||||||||||
Illinois Basin | 578 | 535 | 505 | 1,083 | 1,095 | |||||||||||||||
Northern Powder River Basin | 340 | 591 | 527 | 867 | 1,447 | |||||||||||||||
Total coal sales volumes | 3,894 | 6,962 | 4,514 | 8,408 | 13,007 | |||||||||||||||
Coal royalty revenue per ton | ||||||||||||||||||||
Appalachia | ||||||||||||||||||||
Northern (1) | $ | 2.74 | $ | 0.86 | $ | 1.81 | $ | 2.01 | $ | 2.19 | ||||||||||
Central | 4.04 | 6.03 | 4.83 | 4.47 | 6.03 | |||||||||||||||
Southern | 4.96 | 6.69 | 4.16 | 4.68 | 7.60 | |||||||||||||||
Illinois Basin | 1.97 | 4.51 | 4.35 | 3.08 | 4.64 | |||||||||||||||
Northern Powder River Basin | 3.15 | 2.75 | 4.13 | 3.75 | 2.66 | |||||||||||||||
Combined average coal royalty revenue per ton | 3.73 | 4.46 | 4.44 | 4.11 | 4.89 | |||||||||||||||
Coal royalty revenues | ||||||||||||||||||||
Appalachia | ||||||||||||||||||||
Northern (1) | $ | 238 | $ | 1,393 | $ | 593 | $ | 831 | $ | 5,438 | ||||||||||
Central | 9,951 | 23,055 | 14,173 | 24,124 | 43,699 | |||||||||||||||
Southern | 2,111 | 2,581 | 923 | 3,034 | 5,578 | |||||||||||||||
Total Appalachia | 12,300 | 27,029 | 15,689 | 27,989 | 54,715 | |||||||||||||||
Illinois Basin | 1,137 | 2,411 | 2,199 | 3,336 | 5,081 | |||||||||||||||
Northern Powder River Basin | 1,071 | 1,624 | 2,177 | 3,248 | 3,855 | |||||||||||||||
Unadjusted coal royalty revenues | 14,508 | 31,064 | 20,065 | 34,573 | 63,651 | |||||||||||||||
Coal royalty adjustment for minimum leases (2) | (3,661) | (361) | (963) | (4,624) | (817) | |||||||||||||||
Total coal royalty revenues | $ | 10,847 | $ | 30,703 | $ | 19,102 | $ | 29,949 | $ | 62,834 | ||||||||||
Other revenues | ||||||||||||||||||||
Production lease minimum revenues (2) | $ | 8,485 | $ | 15,879 | $ | 802 | $ | 9,287 | $ | 18,579 | ||||||||||
Minimum lease straight-line revenues (2) | 4,987 | 3,854 | 3,809 | 8,796 | 7,170 | |||||||||||||||
Property tax revenues | 761 | 1,377 | 1,599 | 2,360 | 2,810 | |||||||||||||||
Wheelage revenues | 1,584 | 1,945 | 2,204 | 3,788 | 3,360 | |||||||||||||||
Coal overriding royalty revenues | 683 | 3,999 | 1,322 | 2,005 | 7,974 | |||||||||||||||
Lease amendment revenues | 890 | 4,414 | 843 | 1,733 | 5,185 | |||||||||||||||
Aggregates royalty revenues | 271 | 1,237 | 576 | 847 | 2,701 | |||||||||||||||
Oil and gas royalty revenues | 2,742 | 482 | 1,103 | 3,845 | 2,201 | |||||||||||||||
Other revenues | 416 | 726 | 73 | 489 | 1,304 | |||||||||||||||
Total other revenues | $ | 20,819 | $ | 33,913 | $ | 12,331 | $ | 33,150 | $ | 51,284 | ||||||||||
Coal royalty and other | $ | 31,666 | $ | 64,616 | $ | 31,433 | $ | 63,099 | $ | 114,118 | ||||||||||
Transportation and processing services revenues | 1,938 | 5,274 | 2,509 | 4,447 | 10,875 | |||||||||||||||
Gain on asset sales and disposals | 465 | 246 | — | 465 | 502 | |||||||||||||||
Total Coal Royalty and Other segment revenues and other income | $ | 34,069 | $ | 70,136 | $ | 33,942 | $ | 68,011 | $ | 125,495 | ||||||||||
| ____________________ | ||||||||||||||||||||
| (1) | Northern Appalachia includes NRP's Hibbs Run property that has significant sales volumes, but a low fixed rate per ton. |
| (2) | Beginning April 1, 2020 and effective January 1, 2020, certain revenues previously classified as coal royalty revenues are classified as production lease minimum revenues or minimum lease straight-line revenues due to contract modifications that fixed consideration paid to us over a two-year period. |
Natural Resource Partners L.P. Financial Tables (Unaudited) | ||||||||||||||||
Adjusted EBITDA | ||||||||||||||||
Coal Royalty
| Corporate and
| |||||||||||||||
(In thousands) | Soda Ash | Total | ||||||||||||||
For the Three Months Ended June 30, 2020 | ||||||||||||||||
Net income (loss) from continuing operations | (108,479) | (3,087) | (13,935) | $ | (125,501) | |||||||||||
Less: equity earnings from unconsolidated investment | — | 3,058 | — | 3,058 | ||||||||||||
Add: total distributions from unconsolidated investment | — | 7,105 | — | 7,105 | ||||||||||||
Add: interest expense, net | 15 | — | 10,314 | 10,329 | ||||||||||||
Add: loss on extinguishment of debt | — | — | — | — | ||||||||||||
Add: depreciation, depletion and amortization | 2,062 | — | — | 2,062 | ||||||||||||
Add: asset impairments | 132,283 | — | — | 132,283 | ||||||||||||
Adjusted EBITDA | $ | 25,881 | $ | 7,076 | $ | (3,621) | $ | 29,336 | ||||||||
For the Three Months Ended June 30, 2019 | ||||||||||||||||
Net income (loss) from continuing operations | $ | 53,707 | $ | 11,333 | $ | (45,934) | $ | 19,106 | ||||||||
Less: equity earnings from unconsolidated investment | — | (11,333) | — | (11,333) | ||||||||||||
Add: total distributions from unconsolidated investment | — | 9,310 | — | 9,310 | ||||||||||||
Add: interest expense, net | — | — | 12,456 | 12,456 | ||||||||||||
Add: loss on extinguishment of debt | — | — | 29,282 | 29,282 | ||||||||||||
Add: depreciation, depletion and amortization | 3,970 | — | — | 3,970 | ||||||||||||
Add: asset impairments | — | — | — | — | ||||||||||||
Adjusted EBITDA | $ | 57,677 | $ | 9,310 | $ | (4,196) | $ | 62,791 | ||||||||
For the Three Months Ended March 31, 2020 | ||||||||||||||||
Net income (loss) from continuing operations | $ | 26,744 | $ | 6,256 | (14,221) | $ | 18,779 | |||||||||
Less: equity earnings from unconsolidated investment | — | (6,272) | — | (6,272) | ||||||||||||
Add: total distributions from unconsolidated investment | — | 7,105 | — | 7,105 | ||||||||||||
Add: interest expense, net | — | — | 10,308 | 10,308 | ||||||||||||
Add: loss on extinguishment of debt | — | — | — | — | ||||||||||||
Add: depreciation, depletion and amortization | 2,012 | — | — | 2,012 | ||||||||||||
Add: asset impairments | — | — | — | — | ||||||||||||
Adjusted EBITDA | $ | 28,756 | $ | 7,089 | $ | (3,913) | $ | 31,932 | ||||||||
Natural Resource Partners L.P. Reconciliation of Non-GAAP Measures (Unaudited) | ||||||||||||||||
Adjusted EBITDA | ||||||||||||||||
Coal Royalty
| Corporate and
| |||||||||||||||
(In thousands) | Soda Ash | Total | ||||||||||||||
For the Six Months Ended June 30, 2020 | ||||||||||||||||
Net income (loss) from continuing operations | $ | (81,735) | $ | 3,169 | $ | (28,156) | $ | (106,722) | ||||||||
Less: equity earnings from unconsolidated investment | — | (3,214) | — | (3,214) | ||||||||||||
Add: total distributions from unconsolidated investment | — | 14,210 | — | 14,210 | ||||||||||||
Add: interest expense, net | 15 | — | 20,622 | 20,637 | ||||||||||||
Add: loss on extinguishment of debt | — | — | — | — | ||||||||||||
Add: depreciation, depletion and amortization | 4,074 | — | — | 4,074 | ||||||||||||
Add: asset impairments | 132,283 | — | — | 132,283 | ||||||||||||
Adjusted EBITDA | $ | 54,637 | $ | 14,165 | $ | (7,534) | $ | 61,268 | ||||||||
For the Six Months Ended June 30, 2019 | ||||||||||||||||
Net income (loss) from continuing operations | $ | 96,314 | $ | 23,015 | $ | (64,458) | $ | 54,871 | ||||||||
Less: equity earnings from unconsolidated investment | — | (23,015) | — | (23,015) | ||||||||||||
Add: total distributions from unconsolidated investment | — | 19,110 | — | 19,110 | ||||||||||||
Add: interest expense, net | — | — | 26,630 | 26,630 | ||||||||||||
Add: loss on extinguishment of debt | — | — | 29,282 | 29,282 | ||||||||||||
Add: depreciation, depletion and amortization | 8,362 | — | — | 8,362 | ||||||||||||
Add: asset impairments | — | — | — | — | ||||||||||||
Adjusted EBITDA | $ | 104,676 | $ | 19,110 | $ | (8,546) | $ | 115,240 | ||||||||
Natural Resource Partners L.P. Reconciliation of Non-GAAP Measures (Unaudited) | ||||||||||||||||
Distributable Cash Flow and Free Cash Flow | ||||||||||||||||
Coal Royalty
| Corporate and
| |||||||||||||||
(In thousands) | Soda Ash | Total | ||||||||||||||
For the Three Months Ended June 30, 2020 | ||||||||||||||||
Net cash provided by (used in) operating activities of continuing operations | $ | 31,953 | $ | 7,077 | $ | (19,095) | 19,935 | |||||||||
Add: proceeds from asset sales and disposals | 507 | — | — | 507 | ||||||||||||
Add: proceeds from sale of discontinued operations | — | — | — | — | ||||||||||||
Add: return of long-term contract receivable | 858 | — | — | 858 | ||||||||||||
Distributable cash flow | $ | 33,318 | $ | 7,077 | $ | (19,095) | $ | 21,300 | ||||||||
Less: proceeds from asset sales and disposals | (507) | — | — | (507) | ||||||||||||
Less: proceeds from sale of discontinued operations | — | — | — | — | ||||||||||||
Less: acquisition costs | (1,000) | — | — | (1,000) | ||||||||||||
Free cash flow | $ | 31,811 | $ | 7,077 | $ | (19,095) | $ | 19,793 | ||||||||
For the Three Months Ended June 30, 2019 | ||||||||||||||||
Net cash provided by (used in) operating activities of continuing operations | $ | 55,811 | $ | 9,310 | $ | (11,762) | $ | 53,359 | ||||||||
Add: proceeds from asset sales and disposals | 247 | — | — | 247 | ||||||||||||
Add: proceeds from sale of discontinued operations | — | — | — | (44) | ||||||||||||
Add: return of long-term contract receivable | 451 | — | — | 451 | ||||||||||||
Distributable cash flow | $ | 56,509 | $ | 9,310 | $ | (11,762) | $ | 54,013 | ||||||||
Less: proceeds from asset sales and disposals | (247) | — | — | (247) | ||||||||||||
Less: proceeds from sale of discontinued operations | — | — | — | 44 | ||||||||||||
Less: acquisition costs | — | — | — | — | ||||||||||||
Free cash flow | $ | 56,262 | $ | 9,310 | $ | (11,762) | $ | 53,810 | ||||||||
For the Three Months Ended March 31, 2020 | ||||||||||||||||
Net cash provided by (used in) operating activities of continuing operations | $ | 30,556 | $ | 7,089 | $ | (7,490) | $ | 30,155 | ||||||||
Add: proceeds from asset sales and disposals | — | — | — | — | ||||||||||||
Add: proceeds from sale of discontinued operations | — | — | — | (66) | ||||||||||||
Add: return of long-term contract receivable | 272 | — | — | 272 | ||||||||||||
Distributable cash flow | $ | 30,828 | $ | 7,089 | $ | (7,490) | $ | 30,361 | ||||||||
Less: proceeds from asset sales and disposals | — | — | — | — | ||||||||||||
Less: proceeds from sale of discontinued operations | — | — | — | 66 | ||||||||||||
Less: acquisition costs | — | — | — | — | ||||||||||||
Free cash flow | $ | 30,828 | $ | 7,089 | $ | (7,490) | $ | 30,427 | ||||||||
Natural Resource Partners L.P. Reconciliation of Non-GAAP Measures (Unaudited) | ||||||||||||||||
Distributable Cash Flow and Free Cash Flow | ||||||||||||||||
Coal Royalty
| Corporate and
| |||||||||||||||
(In thousands) | Soda Ash | Total | ||||||||||||||
For the Six Months Ended June 30, 2020 | ||||||||||||||||
Net cash provided by (used in) operating activities of continuing operations | $ | 62,509 | $ | 14,166 | $ | (26,585) | $ | 50,090 | ||||||||
Add: distributions from unconsolidated investment in excess of cumulative earnings | — | — | — | — | ||||||||||||
Add: proceeds from asset sales and disposals | 507 | — | — | 507 | ||||||||||||
Add: proceeds from sale of discontinued operations | — | — | — | (66) | ||||||||||||
Add: return of long-term contract receivable | 1,130 | — | — | 1,130 | ||||||||||||
Distributable cash flow | $ | 64,146 | $ | 14,166 | $ | (26,585) | $ | 51,661 | ||||||||
Less: proceeds from asset sales and disposals | (507) | — | — | (507) | ||||||||||||
Less: proceeds from sale of discontinued operations | — | — | — | 66 | ||||||||||||
Less: acquisition costs | (1,000) | — | — | (1,000) | ||||||||||||
Free cash flow | $ | 62,639 | $ | 14,166 | $ | (26,585) | $ | 50,220 | ||||||||
For the Six Months Ended June 30, 2019 | ||||||||||||||||
Net cash provided by (used in) operating activities of continuing operations | $ | 98,727 | $ | 19,110 | $ | (41,646) | $ | 76,191 | ||||||||
Add: distributions from unconsolidated investment in excess of cumulative earnings | — | — | — | — | ||||||||||||
Add: proceeds from asset sales and disposals | 503 | — | — | 503 | ||||||||||||
Add: proceeds from sale of discontinued operations | — | — | — | (434) | ||||||||||||
Add: return of long-term contract receivable | 892 | — | — | 892 | ||||||||||||
Distributable cash flow | $ | 100,122 | $ | 19,110 | $ | (41,646) | $ | 77,152 | ||||||||
Less: proceeds from asset sales and disposals | (503) | — | — | (503) | ||||||||||||
Less: proceeds from sale of discontinued operations | — | — | — | 434 | ||||||||||||
Less: acquisition costs | — | — | — | — | ||||||||||||
Free cash flow | $ | 99,619 | $ | 19,110 | $ | (41,646) | $ | 77,083 | ||||||||
Natural Resource Partners L.P. Reconciliation of Non-GAAP Measures (Unaudited) | ||||||||||||||||||||
LTM Free Cash Flow and Cash Flow Cushion | ||||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||
(In thousands) | September 30,
| December 31,
| March 31,
| June 30,
| Last 12
| |||||||||||||||
Net cash provided by operating activities of continuing operations | $ | 41,734 | $ | 19,394 | $ | 30,155 | $ | 19,935 | $ | 111,218 | ||||||||||
Add: proceeds from asset sales and disposals | 6,108 | (111) | — | 507 | 6,504 | |||||||||||||||
Add: proceeds from sale of discontinued operations | (122) | (73) | (66) | — | (261) | |||||||||||||||
Add: return of long-term contract receivable | 459 | 392 | 272 | 858 | 1,981 | |||||||||||||||
Distributable cash flow | $ | 48,179 | $ | 19,602 | $ | 30,361 | $ | 21,300 | $ | 119,442 | ||||||||||
Less: proceeds from asset sales and disposals | (6,108) | 111 | — | (507) | (6,504) | |||||||||||||||
Less: proceeds from sale of discontinued operations | 122 | 73 | 66 | — | 261 | |||||||||||||||
Less: acquisition costs | — | (22) | — | (1,000) | (1,022) | |||||||||||||||
Free cash flow | $ | 42,193 | $ | 19,764 | $ | 30,427 | $ | 19,793 | $ | 112,177 | ||||||||||
Add (less): free cash flow provided by (used by) discontinued operations | (359) | (4) | 1,706 | — | 1,343 | |||||||||||||||
Free cash flow including discontinued operations | $ | 41,834 | $ | 19,760 | $ | 32,133 | $ | 19,793 | $ | 113,520 | ||||||||||
Add (less): free cash flow used by (provided by) discontinued operations | 359 | 4 | (1,706) | — | (1,343) | |||||||||||||||
Free cash flow excluding discontinued operations | $ | 42,193 | $ | 19,764 | $ | 30,427 | $ | 19,793 | $ | 112,177 | ||||||||||
Less: mandatory Opco debt repayments | (8,276) | (20,335) | (16,696) | (2,365) | (47,672) | |||||||||||||||
Less: preferred unit distributions | (7,500) | (7,500) | (7,500) | (7,613) | (30,113) | |||||||||||||||
Less: common unit distributions | (5,630) | (5,630) | (5,630) | — | (16,890) | |||||||||||||||
Cash flow cushion | $ | 20,787 | $ | (13,701) | $ | 601 | $ | 9,815 | $ | 17,502 | ||||||||||
Leverage Ratio | ||||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||
(In thousands) | September 30,
| December 31,
| March 31,
| June 30,
| Last 12
| |||||||||||||||
Net income (loss) from continuing operations | $ | 39,163 | $ | (119,448) | $ | 18,779 | $ | (125,501) | $ | (187,007) | ||||||||||
Less: equity earnings from unconsolidated investment | (13,818) | (10,256) | (6,272) | 3,058 | (27,288) | |||||||||||||||
Add: total distributions from unconsolidated investment | 6,370 | 6,370 | 7,105 | 7,105 | 26,950 | |||||||||||||||
Add: interest expense, net | 10,431 | 10,392 | 10,308 | 10,329 | 41,460 | |||||||||||||||
Add: depreciation, depletion and amortization | 3,384 | 3,186 | 2,012 | 2,062 | 10,644 | |||||||||||||||
Add: asset impairments | 484 | 147,730 | — | 132,283 | 280,497 | |||||||||||||||
Adjusted EBITDA | $ | 46,014 | $ | 37,974 | $ | 31,932 | $ | 29,336 | $ | 145,256 | ||||||||||
Debt—at June 30, 2020 | $ | 504,995 | ||||||||||||||||||
Leverage Ratio (1) | 3.5 | x | ||||||||||||||||||
| ____________________ | ||||||||||||||||||||
(1) | Leverage Ratio is calculated as the outstanding principal of NRP's debt as of June 30, 2020 divided by the last twelve months' Adjusted EBITDA. Note that adjusted EBITDA under NRP's partnership agreement is different than amount shown above. As a result, NRP's last twelve months Leverage ratio as of June 30, 2020, was 3.6x as calculated under NRP's partnership agreement. |
Natural Resource Partners L.P. Reconciliation of Non-GAAP Measures (Unaudited) | ||||||||||||||||||||
Return on Capital Employed ("ROCE") | ||||||||||||||||||||
Coal Royalty
| Corporate and
| |||||||||||||||||||
(In thousands) | Soda Ash | Total | ||||||||||||||||||
LTM Ended June 30, 2020 | ||||||||||||||||||||
Net income (loss) from continuing operations | $ | (156,838) | $ | 26,994 | $ | (57,163) | $ | (187,007) | ||||||||||||
Financing costs | — | — | 42,702 | 42,702 | ||||||||||||||||
Return | $ | (156,838) | $ | 26,994 | $ | (14,461) | $ | (144,305) | ||||||||||||
As of June 30, 2019 | ||||||||||||||||||||
Total assets of continuing operations | $ | 949,198 | $ | 251,135 | $ | 18,126 | $ | 1,218,459 | ||||||||||||
Less: total current liabilities of continuing operations excluding current debt | (12,365) | — | (9,482) | (21,847) | ||||||||||||||||
Less: total long-term liabilities of continuing operations excluding long-term debt | (47,667) | — | (354) | (48,021) | ||||||||||||||||
Capital employed excluding discontinued operations | $ | 889,166 | $ | 251,135 | $ | 8,290 | $ | 1,148,591 | ||||||||||||
Total partners' capital (1) | $ | 892,101 | $ | 251,135 | $ | (700,366) | $ | 443,196 | ||||||||||||
Less: non-controlling interest | (2,935) | — | — | (2,935) | ||||||||||||||||
Less: partners' capital from discontinued operations | — | — | — | (326) | ||||||||||||||||
Total partners' capital excluding discontinued operations | $ | 889,166 | $ | 251,135 | $ | (700,366) | $ | 439,935 | ||||||||||||
Class A convertible preferred units | — | — | 164,587 | 164,587 | ||||||||||||||||
Debt | — | — | 544,069 | 544,069 | ||||||||||||||||
Capital employed excluding discontinued operations | $ | 889,166 | $ | 251,135 | $ | 8,290 | $ | 1,148,591 | ||||||||||||
ROCE excluding discontinued operations | (17.6)% | 10.7% | N/A | (12.6)% | ||||||||||||||||
Excluding asset impairments: | ||||||||||||||||||||
Return | $ | (156,838) | $ | 26,994 | $ | (14,461) | $ | (144,305) | ||||||||||||
Add: asset impairments | 280,497 | — | — | 280,497 | ||||||||||||||||
Return excluding asset impairments | $ | 123,659 | $ | 26,994 | $ | (14,461) | $ | 136,192 | ||||||||||||
ROCE excluding discontinued operations and asset impairments | 13.9% | 10.7% | N/A | 11.9% | ||||||||||||||||
____________________ | ||||||||||||||||||||
| (1) | Total partners' capital includes $0.3 million from discontinued operations. |
Change in Common Unitholders' Equity Excluding Asset Impairments Attributable to Common Unitholders | ||||
(In thousands) | ||||
Q2 2020 Common unitholders' equity | $ | 139,517 | ||
Q2 2019 Common unitholders' equity | $ | 374,275 | ||
LTM Change in common unitholders' equity | $ | (234,758) | ||
LTM Asset impairments | $ | 280,497 | ||
LTM Asset impairments attributable to common unitholders | $ | 274,887 | ||
LTM Change in common unitholders' equity excluding asset impairments attributable to common unitholders | $ | 40,129 | ||
View source version on businesswire.com: https://www.businesswire.com/news/home/20200807005042/en/
Contacts:
tsammis@nrplp.com
