PEABODY REPORTS EARNINGS FOR QUARTER ENDED SEPTEMBER 30, 2020
ST. LOUIS, Nov. 9, 2020 – Peabody (NYSE: BTU) today announced its third quarter 2020 operating results, including revenues of $671.0 million; loss from continuing operations, net of income taxes of
$64.8 million; net loss attributable to common stockholders of $67.2 million; diluted loss per share from continuing operations of $0.66; and Adjusted EBITDA1 of $95.4 million.
“Peabody drove strong cost performance within our thermal segments during the third quarter, including record-low PRB costs per ton,” said President and Chief Executive Officer Glenn Kellow. “We have had a number of achievements across the portfolio and look to further build upon our progress as we tackle structural improvements within the seaborne met segment. In addition to our ongoing portfolio enhancements, we have been working to achieve specific financing objectives. While we have made progress, there is still more to do. Together, these actions are intended to provide a solid base to strengthen our financial and operating performance.”
Third Quarter 2020 Results
Third quarter revenues declined 39 percent from the prior year to $671.0 million due to lower volumes, mix changes and weaker seaborne pricing. U.S. thermal revenues declined $215.4 million, including $82.6 million from Kayenta’s closure in the third quarter of 2019.
Operating costs and expenses also fell by 39 percent, reflecting the benefit of cost saving initiatives taken to date, as well as lower volumes. These initiatives included further headcount reductions, which resulted in a restructuring charge of $8.1 million in the third quarter.
The company also modified its approach to its non-represented retiree medical coverage to better align with evolving business conditions and industry benchmarks. Given this change, the company’s postretirement benefit obligation was adjusted to fair value, utilizing lower discount rates, which resulted in a $13.0 million loss in the quarter and a $174.5 million reduction in the liability.
Peabody ended the third quarter with $814.6 million of cash and cash equivalents and $860.1 million of available liquidity.
During the quarter, the seaborne thermal segment shipped 4.6 million tons, with 2.7 million tons exported at an average realized price of $45.86 per short ton. The remaining 1.9 million tons were sold under a long-term domestic contract.
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 Monday, November 9, 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.