FOR IMMEDIATE RELEASE
PEABODY REPORTS EARNINGS FOR QUARTER ENDED MARCH 31, 2020
Ensuring the health and safety of employees and communities, and safeguarding financial flexibility during COVID‐19; Implemented cost reduction activities with further actions underway, goal for all mines to demonstrate path to cash generation at lower pricing levels; Suspending 2020 guidance given global economic uncertainty.
ST. LOUIS, April 29 – Peabody (NYSE: BTU) today announced its first quarter 2020 operating results, including revenues of $846.2 million; loss from continuing operations, net of income taxes of $129.3 million; net loss attributable to common stockholders of $129.7 million; diluted loss per share from continuing operations of $1.31; and Adjusted EBITDA1 of $36.8 million.
“During this time of great global concern and economic uncertainty, we are continually working to safeguard our people, communities and business as we pursue actions to confront near-term headwinds and best position our company for the future,” said President and Chief Executive Officer Glenn Kellow. “In recent months, we have taken aggressive actions to improve our cost structure, and are now expediting a detailed mine-by-mine analysis to structurally improve our operating portfolio with accountability for performance targets extending from individual sites to the board level. Our Peabody people will drive our success, and I continue to be impressed and grateful for their ability to quickly adapt to change and confront challenges head on.”
First Quarter 2020 Results
First quarter 2020 revenues totaled $846.2 million compared to $1.25 billion in the prior year, reflecting the impact of lower volumes, largely due to the closure of the Kayenta Mine and challenged U.S. industry conditions, as well as lower pricing.
Depreciation, depletion, and amortization (DD&A) declined 39 percent from the prior year to $106.0 million, primarily due to the Kayenta Mine closure, roll-off of contract amortization expense and lower volumes.
Selling and administrative expenses improved 32 percent from the prior year to $24.9 million, reflecting the benefits of actions taken to date as well as reduced share-based incentive compensation expense.
In line with Peabody’s continual evaluation of its portfolio for value-creation opportunities, the company sold minor surplus undeveloped Australian land tenements, contributing to an $8.1 million gain on disposals in the quarter.
1 Adjusted EBITDA, Free Cash Flow and Net Debt are non-GAAP financial measures. Revenues per ton, costs per ton, Adjusted EBITDA margin per ton and percent are non‐GAAP operating/statistical measures. Adjusted EBITDA margin is equal to segment Adjusted EBITDA divided by segment revenues. Please refer to the tables and related notes in this press release for a reconciliation and definition of non‐GAAP financial measures.