PEABODY REPORTS EARNINGS FOR QUARTER ENDED JUNE 30, 2020
Challenging seaborne market conditions weigh on results; U.S. thermal operations respond well despite reduced scale; Continued secular decline and reduction in long-term natural gas price assumptions contributed to $1.42 billion impairment charge at NARM; Evaluating strategic financing alternatives
ST. LOUIS, Aug. 5 – Peabody (NYSE: BTU) today announced its second quarter 2020 operating results, including revenues of $626.7 million; loss from continuing operations, net of income taxes of
$1.55 billion; net loss attributable to common stockholders of $1.54 billion; diluted loss per share from continuing operations of $15.76; and Adjusted EBITDA1 of $23.4 million.
“Over the past quarter, we have remained committed to the health and safety of our employees and communities in which we operate, while also taking further action to improve our cost structure,” said President and Chief Executive Officer Glenn Kellow. “Our U.S. thermal operations have done a tremendous job of adapting to significantly lower demand, while our seaborne operations have remained pressured by the economic impacts of the COVID-19 pandemic. Continued uncertainty in global markets requires us to further improve our operating performance and ensure we have a scalable structure that can respond to market conditions in the months ahead.”
Second Quarter 2020 Results
Second quarter 2020 revenues of $626.7 million reflect the impact of substantially lower shipments and weak pricing. Seaborne revenues declined $257.5 million on 48 percent lower metallurgical volumes and depressed metallurgical and thermal coal prices, largely driven by the ongoing COVID-19 pandemic. U.S. thermal revenues declined $234.4 million due to the closure of Kayenta in the third quarter of 2019 as well as continued weakness in natural gas prices impacting coal demand.
Twenty-eight percent lower volumes, combined with the impacts of the Kayenta Mine closure in late 2019, contributed to a 47 percent decline in depreciation, depletion, and amortization (DD&A) from the prior year
to $88.3 million.
Compared to the prior year, selling and administrative (SG&A) expenses improved 35 percent, reflecting prior restructuring efforts, including headcount reductions made earlier this year. Year-to-date SG&A marks the lowest levels reported since 2003.
1 Adjusted EBITDA is a non-GAAP financial measure. 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.
The following information was filed by Peabody Energy Corp (BTU) on Wednesday, August 5, 2020 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.