Alpha Natural Resources
) reported a loss of 52 cents per share for the fourth quarter of
2013, narrower than the Zacks Consensus Estimate of a loss of 61
cents. The loss per share in the quarter was, however, much wider
than the year-ago loss of 19 cents.
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GAAP loss during the quarter was $1.62 per share versus a loss of
58 cents incurred in the year-ago quarter. The difference between
GAAP and operating loss in the reporting quarter was primarily
due to impairments, merger-related expenses and amortization of
The company's 2013 operating loss was $2.15 per share, narrower
than the Zacks Consensus Estimate of a loss of $2.28. However,
the bottom line was substantially wider than the 2012 loss of 94
cents per share.
Alpha Natural Resources' total revenue of $1.09 billion in the
fourth quarter was lower than the Zacks Consensus Estimate of
$1.16 billion and the year-ago figure of $1.56 billion.
Alpha Natural Resources' total revenue of $4.95 billion in 2013
was marginally lower than the Zacks Consensus Estimate of $5.05
billion. The results were also lower than the 2012 figure of
$6.97 billion by 28.9%.
In 2013, the company registered a 26.8% decline in Freight and
Handling revenues, while Coal revenues decreased 29.2% and Other
Revenues plunged 30.2%, resulting in the overall decline.
Highlights of the Release
Coal tons sold in 2013 decreased 20.1% to 86.9 million tons. In
2013, the company also experienced an 11.4% year-over-year
decline in average realized price per ton sold to $48.99 per ton.
The combination of these two factors impacted the top line of the
Selling, general and administrative (SG&A) expense in 2013
was $158.9 million, compared with $209.8 million in 2012. The
SG&A decline was an outcome of Alpha's restructuring
Cash and cash equivalents of the company as of Dec 31, 2013 were
$619.6 million versus $730.7 million as of Dec 31, 2012.
Long-term debt as of Dec 31, 2013 was $3.34 billion versus $3.29
billion as of Dec 31, 2012.
During the fourth quarter, the company issued $300 million of
4.875% convertible senior notes due 2020. The net proceeds
from the issue were utilized to redeem its existing debts and the
balance was kept aside for general corporate purposes.
Cash from operating activities during 2013 was $109.1 million
versus $518.5 million in the prior year. Capital expenditure in
2013 was $215.6 million versus $402.4 million in 2012.
During the year the company repurchased shares worth $1.4 million
versus $7.5 million in 2012.
The company expects to ship 77 to 90 million tons of coal in
2014, which will include 16 to 20 million tons of Eastern
metallurgical coal, 24 to 30 million tons of Eastern steam coal,
and 37 to 40 million tons of Western steam coal out of the PRB.
Selling, general and administrative expenses are expected to
range from $110 million to $140 million for 2014. Interest
expense and depreciation, depletion and amortization expense are
anticipated in the range of $240 million to $255 million and $650
million to $750 million, respectively.
Capital expenditure for 2014 is expected to be in a range of $250
million to $300 million.
Other Company Release
Arch Coal Inc.
) reported fourth-quarter 2013 pro forma loss of 45 cents per
share, wider than the Zacks Consensus Estimate of a loss of 36
Peabody Energy Corporation
) broke even in the fourth quarter versus the Zacks Consensus
Estimate of a loss of 8 cents per share.
) reported fourth-quarter 2013 earnings of 3 cents per share,
lagging the Zacks Consensus Estimate of 8 cents.
Alpha Natural Resources was affected by the softness in coal
demand and the decline in realized prices per ton made matters
worse. The company does not expect a dramatic change in the coal
market in 2014.
In the quarter under review the company decided to let go of its
50% interest in Alpha Shale Resources Joint Venture to Rice
Energy for $300 million. The proceeds will help the company to
sustain its development activities.
Alpha Natural Resources currently has a Zacks Rank #3 (Hold).