PR Newswire | May 10, 2021 07:30AM EDT

05/10 06:30 CDT

Alpha Announces First Quarter 2021 Results- Reports net loss from continuing operations of $32.7 million for the first quarter 2021- Posts Adjusted EBITDA of $28.9 million for the first quarter 2021- Continues strong cost management across all operating segments- Expects significant reduction in minimum required pension contributions through 2025- Reiterates 2021 operating guidance BRISTOL, Tenn., May 10, 2021

BRISTOL, Tenn., May 10, 2021 /PRNewswire/ -- Alpha Metallurgical Resources, Inc. (NYSE: AMR), a leading U.S. supplier of metallurgical products for the steel industry, today reported results for the first quarter ending March 31, 2021.

(millions, except per share)

Three months ended

Mar. 31, 2021Dec. 31, 2020Mar. 31, 2020

Net loss^(2) $(32.7) $(55.1) $(36.2)

Net loss^(2) per diluted share$(1.78) $(3.00) $(1.98)

Adjusted EBITDA^(1) $28.9 $7.4 $56.5

Operating cash flow^(3) $(19.1) $56.2 $(0.1)

Capital expenditures^(3) $(20.4) $(35.1) $(49.6)

Tons of coal sold^(2) 4.1 3.7 3.9

__________________________________

^ These are non-GAAP financial measures. A reconciliation of Net Income to1. Adjusted EBITDA is included in tables accompanying the financial schedules.

^ From continuing operations.2.

^ Includes discontinued operations.3.

"Our first quarter results demonstrate our continued commitment to cost management and focus on fundamental operations performance," said David Stetson, Alpha's chair and chief executive officer. "Despite pricing headwinds from the Australian indices that limited our total realizations for the quarter, Alpha's volumes were very strong and we remain cautiously optimistic about improved market conditions going into the second half of 2021."

Financial Performance

Alpha reported a net loss from continuing operations of $32.7 million, or $1.78 per diluted share, for the first quarter 2021. In the fourth quarter 2020, the company had a net loss from continuing operations of $55.1 million or $3.00 per diluted share.

Total Adjusted EBITDA was $28.9 million for the first quarter, compared with $7.4 million in the fourth quarter 2020, primarily due to higher volumes and improved coal revenues per ton.

Coal Revenues

(millions)

Three months ended

Mar. 31, 2021Dec. 31, 2020

Met $359.9 $289.8

All Other $25.6 $33.6





Met (excl. freight & handling)^(1) $299.9 $241.5

All Other (excl. freight & handling)^(1)$25.2 $32.1





Tons Sold (millions)

Three months ended

Mar. 31, 2021Dec. 31, 2020

Met 3.7 3.2

All Other 0.4 0.5

__________________________________

^ Represents Non-GAAP coal revenues which is defined and reconciled under1. "Non-GAAP Financial Measures" and "Results of Operations."

The Met revenue increase in the first quarter compared to the fourth quarter was due to increased shipment volume and higher price realization. The All Other segment revenues decreased due to lower volumes.

Coal Sales Realization(1)

(per ton)

Three months ended

Mar. 31, 2021Dec. 31, 2020

Met $82.00 $75.24

All Other$61.59 $59.81

__________________________________

^ Represents Non-GAAP coal sales realization which is defined and reconciled1. under "Non-GAAP Financial Measures" and "Results of Operations."

As a result of the improved pricing environment in the Atlantic basin, our average Met segment coal sales realization increased by 9% against the prior quarter to $82.00 per ton from $75.24. Australian hard coking coal indices remained weak throughout the first quarter, negatively impacting our Met segment export realization on contracts tied to Australian indices, while Atlantic indices continued to trade significantly above those in the Pacific.

The All Other segment realization improved 3% in the first quarter over the prior period.

Cost of Coal Sales

(in millions, except per ton data)

Three months ended

Mar. 31, 2021 Dec. 31, 2020

Cost of Coal Sales $347.4 $301.8

Cost of Coal Sales (excl. freight & handling/ $279.9 $245.9 idle)^(1)





(per ton)

Met^(1) $71.72 $69.25

All Other^(1) $43.05 $44.03

__________________________________

^ Represents Non-GAAP cost of coal sales per ton which is defined and1. reconciled under "Non-GAAP Financial Measures" and "Results of Operations."

In the first quarter, the company's Met cost of coal sales averaged $71.72 per ton, up from $69.25 in the prior quarter and approximately in line with our guidance. The main drivers of the cost performance versus the fourth quarter were supplies, primarily related to diesel fuel and roof support, and sales-related expenses due to higher metallurgical coal realizations.

The All Other segment posted another solid cost of coal sales performance, with first quarter cost of $43.05 as compared to $44.03 per ton for the prior quarter.

Selling, general and administrative (SG&A) and depreciation, depletion and amortization (DD&A) expenses

(millions)

Three months ended

Mar. 31, Dec. 31, 2021 2020

SG&A $15.0 $15.3

Less: non-cash stock compensation and non-recurring $(2.3) $(0.8) expenses

Non-GAAP SG&A^(1) $12.7 $14.5



DD&A $28.4 $(4.0)

__________________________________

^1. Represents Non-GAAP SG&A which is defined under "Non-GAAP Financial Measures."

Alpha's first quarter 2021 SG&A expenses were $12.7 million, excluding non-cash stock compensation expense and non-recurring expenses of $2.3 million, compared with $14.5 million in the prior quarter.

Liquidity and Capital Resources

"Based on provisions in the recent American Rescue Plan Act, we have updated our estimates for minimum required pension contributions through 2025," said Andy Eidson, Alpha's president and chief financial officer. "This should result in an estimated reduction of $84.4 million in pension contributions over the full period, which includes a reduction of $14.1 million in 2021 to a minimum contribution of $11.4 million. In terms of our first quarter performance, our accounts receivable increased by $62.0 million as a result of strong sales, partially offset by a $36.8 million increase in accounts payable, resulting in a use of cash for the quarter. We have seen our working capital begin to normalize over the past couple of months and expect that to yield higher cash collections in upcoming quarters."

Cash used for operating activities for the first quarter 2021 was $19.1 million and capital expenditures for the first quarter were $20.4 million. In the prior period, the cash provided by operating activities was $56.2 million, which included the receipt of $66.1 million in accelerated alternative minimum tax (AMT) credit monetization refund. Cash used for and provided by operating activities includes discontinued operations. Capital expenditures for the prior period were $35.1 million.

As of March 31, 2021, Alpha had $92.2 million in unrestricted cash and $148.2 million in restricted cash, deposits and investments. Total long-term debt, including the current portion of long-term debt as of March 31, 2021, was $579.8 million. At the end of the first quarter, the company had total liquidity of $108.5 million, including cash and cash equivalents of $92.2 million and $16.3 million in unused availability under the Asset-Based Revolving Credit Facility (ABL). The future available capacity under the ABL is subject to inventory and accounts receivable collateral requirements and the maintenance of certain financial ratios. As of March 31, 2021, the company had no borrowings and $130.9 million in letters of credit outstanding under the ABL.

2021 Full-Year Guidance

The company reiterates its previously issued 2021 operating guidance with coal shipments guidance range of 14.8 million tons to 16.2 million tons, with Met segment volume expected to be between 13.5 million to 14.5 million tons with pure metallurgical coal shipments of 12.5 million to 13.0 million tons and incidental thermal shipments in this segment of 1.0 million to 1.5 million tons. Our All Other segment volume is anticipated to be between 1.3 million tons to 1.7 million tons.

For 2021, Alpha has committed and priced approximately 64% of its metallurgical coal within the Met segment at an average price of $85.65 per ton and 93% of thermal coal in the Met segment at an average expected price of $51.16 per ton. In the All Other segment the company is 100% committed and priced at an average price of $57.67 per ton.

The company's 2021 Met segment cost of coal sales per ton is expected to be between $68.00 and $74.00 and our All Other segment is expected to be in the range of $45.00 to $49.00 per ton.

For 2021, the company expects its SG&A to be in the range of $44 million to $49 million, excluding non-recurring expenses and non-cash stock compensation. Our overall 2021 capital expenditures guidance is in a range of $75 million to $95 million, near the maintenance capital level. Depreciation, depletion and amortization is expected to be between $125 million and $145 million with cash interest expense in the range of $51 million and $55 million.

2021 Guidance

in millions of tons Low High

Metallurgical 12.5 13.0

Thermal 1.0 1.5

Met Segment 13.5 14.5

All Other 1.3 1.7

Total Shipments 14.8 16.2



Committed/Priced^1,2,3 CommittedAverage Price

Metallurgical 64 %$85.65

Thermal 93 %$51.16

Met Segment 67 %$81.35

All Other 100 %$57.67



Committed/Unpriced^1,3 Committed

Metallurgical 28 %

Thermal 7 %

Met Segment 27 %

All Other - %



Costs per ton^4 Low High

Met Segment $68.00 $74.00

All Other $45.00 $49.00



In millions (except taxes)Low High

SG&A^5 $44 $49

Idle Operations Expense $24 $30

Cash Interest Expense $51 $55

DD&A $125 $145

Capital Expenditures $75 $95

Tax Rate - %5 %

Notes:

1. Based on committed and priced coal shipments as of April 23, 2021. Committed percentage based on the midpoint of shipment guidance range.

Actual average per-ton realizations on committed and priced tons recognized2. in future periods may vary based on actual freight expense in future periods relative to assumed freight expense embedded in projected average per-ton realizations.

Includes estimates of future coal shipments based upon contract terms and3. anticipated delivery schedules. Actual coal shipments may vary from these estimates.

Note: The Company is unable to present a quantitative reconciliation of its forward-looking non-GAAP cost of coal sales per ton sold financial measures to the most directly comparable GAAP measures without unreasonable efforts due to the inherent difficulty in forecasting and quantifying with reasonable accuracy significant items required for the reconciliation. The most directly comparable GAAP measure, GAAP cost of sales, is not accessible4. without unreasonable efforts on a forward-looking basis. The reconciling items include freight and handling costs, which are a component of GAAP cost of sales. Management is unable to predict without unreasonable efforts freight and handling costs due to uncertainty as to the end market and FOB point for uncommitted sales volumes and the final shipping point for export shipments. These amounts have historically varied and may continue to vary significantly from quarter to quarter and material changes to these items could have a significant effect on our future GAAP results.

5. Excludes expenses related to non-cash stock compensation and non-recurring expenses.

Conference Call

The company plans to hold a conference call regarding its first quarter 2021 results on May 10, 2021, at 10:00 a.m. Eastern time. The conference call will be available live on the investor section of the company's website at https://investors.alphametresources.com/investors. Analysts who would like to participate in the conference call should dial 866-235-9918 (domestic toll-free) or 412-542-4110 (international) approximately 15 minutes prior to the start of the call.

About Alpha Metallurgical Resources

Alpha Metallurgical Resources (NYSE: AMR) is a Tennessee-based mining company with operations across Virginia and West Virginia. With customers across the globe, high-quality reserves and significant port capacity, Alpha reliably supplies metallurgical products to the steel industry. For more information, visit www.AlphaMetResources.com.

Forward-Looking Statements

This news release includes forward-looking statements. These forward-looking statements are based on Alpha's expectations and beliefs concerning future events and involve risks and uncertainties that may cause actual results to differ materially from current expectations. These factors are difficult to predict accurately and may be beyond Alpha's control. Forward-looking statements in this news release or elsewhere speak only as of the date made. New uncertainties and risks arise from time to time, and it is impossible for Alpha to predict these events or how they may affect Alpha. Except as required by law, Alpha has no duty to, and does not intend to, update or revise the forward-looking statements in this news release or elsewhere after the date this release is issued. In light of these risks and uncertainties, investors should keep in mind that results, events or developments discussed in any forward-looking statement made in this news release may not occur.

Investor ContactInvestorRelations@AlphaMetResources.comAlex Rotonen, CFA 423.956.6882 Media ContactCorporateCommunications@AlphaMetResources.comEmily O'Quinn423.573.0369

FINANCIAL TABLES FOLLOW

Non-GAAP Financial Measures

The discussion below contains "non-GAAP financial measures." These are financial measures which either exclude or include amounts that are not excluded or included in the most directly comparable measures calculated and presented in accordance with generally accepted accounting principles in the United States ("U.S. GAAP" or "GAAP"). Specifically, we make use of the non-GAAP financial measures "Adjusted EBITDA," "non-GAAP coal revenues," "non-GAAP cost of coal sales," and "Adjusted cost of produced coal sold." We use Adjusted EBITDA to measure the operating performance of our segments and allocate resources to the segments. Adjusted EBITDA does not purport to be an alternative to net income (loss) as a measure of operating performance or any other measure of operating results or liquidity presented in accordance with GAAP. We use non-GAAP coal revenues to present coal revenues generated, excluding freight and handling fulfillment revenues. Non-GAAP coal sales realization per ton for our operations is calculated as non-GAAP coal revenues divided by tons sold. We use non-GAAP cost of coal sales to adjust cost of coal sales to remove freight and handling costs, depreciation, depletion and amortization - production (excluding the depreciation, depletion and amortization related to selling, general and administrative functions), accretion on asset retirement obligations, amortization of acquired intangibles, net, and idled and closed mine costs. Non-GAAP cost of coal sales per ton for our operations is calculated as non-GAAP cost of coal sales divided by tons sold. Non-GAAP coal margin per ton for our coal operations is calculated as non-GAAP coal sales realization per ton for our coal operations less non-GAAP cost of coal sales per ton for our coal operations. We also use Adjusted cost of produced coal sold to distinguish the cost of captive produced coal from the effects of purchased coal. The presentation of these measures should not be considered in isolation, or as a substitute for analysis of our results as reported under GAAP.

Management uses non-GAAP financial measures to supplement GAAP results to provide a more complete understanding of the factors and trends affecting the business than GAAP results alone. The definition of these non-GAAP measures may be changed periodically by management to adjust for significant items important to an understanding of operating trends and to adjust for items that may not reflect the trend of future results by excluding transactions that are not indicative of our core operating performance. Furthermore, analogous measures are used by industry analysts to evaluate the Company's operating performance. Because not all companies use identical calculations, the presentations of these measures may not be comparable to other similarly titled measures of other companies and can differ significantly from company to company depending on long-term strategic decisions regarding capital structure, the tax jurisdictions in which companies operate, and capital investments.

Included below are reconciliations of non-GAAP financial measures to GAAP financial measures.

ALPHA METALLURGICAL RESOURCES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (Amounts in thousands, except share and per share data)



Three Months Ended March 31,

2021 2020

Revenues:

Coal revenues $385,452 $401,460

Other revenues 801 1,344

Total revenues 386,253 402,804

Costs and expenses:

Cost of coal sales (exclusive of items shown separately below) 347,428 334,220

Depreciation, depletion and amortization 28,438 47,616

Accretion on asset retirement obligations 6,648 6,639

Amortization of acquired intangibles, net 3,869 511

Asset impairment and restructuring (561) 33,709

Selling, general and administrative expenses (exclusive of 14,982 15,481 depreciation, depletion and amortization shown separately above)

Total other operating (income) loss:

Mark-to-market adjustment for acquisition-related obligations 3,176 (14,997)

Other income (1,225) (668)

Total costs and expenses 402,755 422,511

Loss from operations (16,502) (19,707)

Other (expense) income:

Interest expense (17,990) (18,176)

Interest income 164 968

Equity loss in affiliates (134) (743)

Miscellaneous income (loss), net 1,766 (716)

Total other expense, net (16,194) (18,667)

Loss from continuing operations before income taxes (32,696) (38,374)

Income tax benefit 5 2,188

Net loss from continuing operations (32,691) (36,186)

Discontinued operations:

Loss from discontinued operations before income taxes (237) (3,622)

Loss from discontinued operations (237) (3,622)

Net loss $(32,928) $(39,808)



Basic and diluted loss per common share:

Loss from continuing operations $(1.78) $(1.98)

Loss from discontinued operations (0.01) (0.20)

Net loss $(1.79) $(2.18)



Weighted average shares - basic and diluted 18,361,444 18,245,911

ALPHA METALLURGICAL RESOURCES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Amounts in thousands, except share and per share data)



March 31, 2021December 31, 2020

Assets

Current assets:

Cash and cash equivalents $92,236 $139,227

Trade accounts receivable, net of allowance for doubtful accounts of $470 and $293 as of 214,342 145,670 March 31, 2021 and December 31, 2020

Inventories, net 108,871 108,051

Prepaid expenses and other current assets 106,909 106,252

Current assets - discontinued operations 3,216 10,935

Total current assets 525,574 510,135

Property, plant, and equipment, net of accumulated depreciation and amortization of 361,120 363,620 $400,505 and $382,423 as of March 31, 2021 and December 31, 2020

Owned and leased mineral rights, net of accumulated depletion and amortization of 457,416 463,250 $40,976 and $35,143 as of March 31, 2021 and December 31, 2020

Other acquired intangibles, net of accumulated amortization of $29,651 and $25,700 as of 84,245 88,196 March 31, 2021 and December 31, 2020

Long-term restricted cash 85,640 96,033

Other non-current assets 148,170 149,382

Non-current assets - discontinued operations 9,476 9,473

Total assets $1,671,641 $1,680,089

Liabilities and Stockholders' Equity

Current liabilities:

Current portion of long-term debt $29,447 $28,830

Trade accounts payable 97,902 58,413

Acquisition-related obligations - current 19,879 19,099

Accrued expenses and other current liabilities 134,873 140,406

Current liabilities - discontinued operations 7,502 12,306

Total current liabilities 289,603 259,054

Long-term debt 550,314 553,697

Acquisition-related obligations - long-term 23,123 20,768

Workers' compensation and black lung obligations 229,691 230,081

Pension obligations 211,722 218,671

Asset retirement obligations 140,675 140,074

Deferred income taxes 474 480

Other non-current liabilities 27,850 28,072

Non-current liabilities - discontinued operations 28,028 29,090

Total liabilities 1,501,480 1,479,987

Commitments and Contingencies

Stockholders' Equity

Preferred stock - par value $0.01, 5.0 million shares authorized, none issued - -

Common stock - par value $0.01, 50.0 million shares authorized, 20.7 million issued and 18.4 million outstanding at March 31, 2021 and 20.6 million issued and 18.3 207 206 million outstanding at December 31, 2020

Additional paid-in capital 781,606 779,424

Accumulated other comprehensive loss (110,501) (111,985)

Treasury stock, at cost: 2.3 million shares at March 31, 2021 and December 31, (107,694) (107,014) 2020

Accumulated deficit (393,457) (360,529)

Total stockholders' equity 170,161 200,102

Total liabilities and stockholders' equity $1,671,641 $1,680,089

ALPHA METALLURGICAL RESOURCES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (Amounts in thousands)



Three Months Ended March 31,

2021 2020

Operating activities:

Net loss $(32,928) $(39,808)

Adjustments to reconcile net loss to net cash used in operating activities:

Depreciation, depletion and amortization 28,438 54,465

Amortization of acquired intangibles, net 3,869 865

Accretion of acquisition-related obligations discount 371 1,092

Amortization of debt issuance costs and accretion of debt discount 3,316 3,659

Mark-to-market adjustment for acquisition-related obligations 3,176 (14,997)

Gain on disposal of assets (1,258) (745)

Asset impairment and restructuring (561) 33,709

Accretion on asset retirement obligations 6,648 7,375

Employee benefit plans, net 2,147 5,346

Deferred income taxes (6) 32,960

Stock-based compensation 2,183 2,078

Equity loss in affiliates 134 743

Other, net 826 808

Changes in operating assets and liabilities (35,470) (87,610)

Net cash used in operating activities (19,115) (60)

Investing activities:

Capital expenditures (20,395) (49,559)

Proceeds on disposal of assets 2,652 208

Purchases of investment securities (12,959) (12,435)

Maturity of investment securities 1,376 3,918

Capital contributions to equity affiliates (441) (915)

Other, net 18 12

Net cash used in investing activities (29,749) (58,771)

Financing activities:

Proceeds from borrowings on debt - 57,500

Principal repayments of debt (4,755) (1,404)

Principal repayments of notes payable (468) (49)

Principal repayments of financing lease obligations (501) (803)

Common stock repurchases and related expenses (680) (108)

Net cash (used in) provided by financing activities (6,404) 55,136

Net decrease in cash and cash equivalents and restricted cash (55,268) (3,695)

Cash and cash equivalents and restricted cash at beginning of period 244,571 347,680

Cash and cash equivalents and restricted cash at end of period $189,303 $343,985

The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the Condensed Consolidated Balance Sheets that sum to the total of the same such amounts shown in the Condensed Consolidated Statements of Cash Flows.

As of March 31,

2021 2020

Cash and cash equivalents $92,236 $227,056

Short-term restricted cash (included in prepaid expenses and other current 11,427 15,114 assets)

Long-term restricted cash 85,640 101,815

Total cash and cash equivalents and restricted cash shown in the Condensed $189,303$343,985Consolidated Statements of Cash Flows

ALPHA METALLURGICAL RESOURCES, INC. AND SUBSIDIARIES ADJUSTED EBITDA RECONCILIATION (Amounts in thousands)



Three Months Ended

March 31, 2021March 31, 2020December 31, 2020

Net loss from continuing operations $(32,691) $(36,186) $(55,050)

Interest expense 17,990 18,176 18,290

Interest income (164) (968) (153)

Income tax (benefit) expense (5) (2,188) 36

Depreciation, depletion and amortization 28,438 47,616 (4,036)

Non-cash stock compensation expense 2,184 2,078 696

Mark-to-market adjustment - acquisition-related obligations3,176 (14,997) 4,676

Accretion on asset retirement obligations 6,648 6,639 6,559

Asset impairment and restructuring ^(1) (561) 33,709 29,897

Management restructuring costs ^(2) - 940 -

Loss on partial settlement of benefit obligations - 1,167 1,735

Amortization of acquired intangibles, net 3,869 511 4,748

Adjusted EBITDA $28,884 $56,497 $7,398

Asset impairment and restructuring for the three months ended March 31, 2021 includes long-lived asset impairment of $60 as a result of capital spending during the quarter at previously impaired locations requiring the impairment of certain additional assets not considered recoverable and restructuring expense of ($621) as a result of the strategic actions^ announced during the second quarter of 2020 and subsequent changes to(1) severance and employee-related benefits. Asset impairment for the three months ended March 31, 2020 includes a long-lived asset impairment related to asset groups recorded within the Met and All Other segments due to declines in metallurgical and thermal coal pricing. Asset impairment and restructuring for the three months ended December 31, 2020 includes long-lived asset impairment of $29,636 related to asset groups recorded within the Met and All Other segments and restructuring expense of $261 recorded in the All Other segment.

^ Management restructuring costs are related to severance expense associated(2) with senior management changes during the three months ended March 31, 2020.

ALPHA METALLURGICAL RESOURCES, INC. AND SUBSIDIARIES RESULTS OF OPERATIONS



Three Months Ended March 31, 2021

(In thousands, except for per ton data) Met All OtherConsolidated

Coal revenues $359,893$25,559$385,452

Less: Freight and handling fulfillment revenues (60,011) (369) (60,380)

Non-GAAP Coal revenues $299,882$25,190$325,072

Tons sold 3,657 409 4,066

Non-GAAP Coal sales realization per ton $82.00 $61.59 $79.95



Cost of coal sales (exclusive of items shown separately below) $325,895$21,533$347,428

Depreciation, depletion and amortization - production^ (1) 26,536 1,723 28,259

Accretion on asset retirement obligations 3,385 3,263 6,648

Amortization of acquired intangibles, net 4,051 (182) 3,869

Total Cost of coal sales $359,867$26,337$386,204

Less: Freight and handling costs (60,011) (369) (60,380)

Less: Depreciation, depletion and amortization - production^ (1)(26,536) (1,723) (28,259)

Less: Accretion on asset retirement obligations (3,385) (3,263) (6,648)

Less: Amortization of acquired intangibles, net (4,051) 182 (3,869)

Less: Idled and closed mine costs (3,603) (3,556) (7,159)

Non-GAAP Cost of coal sales $262,281$17,608$279,889

Tons sold 3,657 409 4,066

Non-GAAP Cost of coal sales per ton $71.72 $43.05 $68.84

^ Depreciation, depletion and amortization - production excludes the(1) depreciation, depletion and amortization related to selling, general and administrative functions.

Three Months Ended March 31, 2021

(In thousands, except for per ton data) Met All OtherConsolidated

Coal revenues $359,893$25,559$385,452

Less: Total Cost of coal sales (per table above) (359,867)(26,337)(386,204)

GAAP Coal margin $26 $(778) $(752)

Tons sold 3,657 409 4,066

GAAP Coal margin per ton $0.01 $(1.90)$(0.18)



GAAP Coal margin $26 $(778) $(752)

Add: Depreciation, depletion and amortization - production^ (1)26,536 1,723 28,259

Add: Accretion on asset retirement obligations 3,385 3,263 6,648

Add: Amortization of acquired intangibles, net 4,051 (182) 3,869

Add: Idled and closed mine costs 3,603 3,556 7,159

Non-GAAP Coal margin $37,601 $7,582 $45,183

Tons sold 3,657 409 4,066

Non-GAAP Coal margin per ton $10.28 $18.54 $11.11

^ Depreciation, depletion and amortization - production excludes the(1) depreciation, depletion and amortization related to selling, general and administrative functions.

Three Months Ended March 31, 2020

(In thousands, except for per ton data) Met All OtherConsolidated

Coal revenues $362,403$39,057$401,460

Less: Freight and handling fulfillment revenues (53,664) (3,743) (57,407)

Non-GAAP Coal revenues $308,739$35,314$344,053

Tons sold 3,327 622 3,949

Non-GAAP Coal sales realization per ton $92.80 $56.77 $87.12



Cost of coal sales (exclusive of items shown separately below) $293,058$41,162$334,220

Depreciation, depletion and amortization - production^ (1) 41,722 5,540 47,262

Accretion on asset retirement obligations 3,536 3,103 6,639

Amortization of acquired intangibles, net 2,581 (2,070) 511

Total Cost of coal sales $340,897$47,735$388,632

Less: Freight and handling costs (53,664) (3,743) (57,407)

Less: Depreciation, depletion and amortization - production^ (1)(41,722) (5,540) (47,262)

Less: Accretion on asset retirement obligations (3,536) (3,103) (6,639)

Less: Amortization of acquired intangibles, net (2,581) 2,070 (511)

Less: Idled and closed mine costs (4,157) (4,362) (8,519)

Non-GAAP Cost of coal sales $235,237$33,057$268,294

Tons sold 3,327 622 3,949

Non-GAAP Cost of coal sales per ton $70.71 $53.15 $67.94

^ Depreciation, depletion and amortization - production excludes the(1) depreciation, depletion and amortization related to selling, general and administrative functions.

Three Months Ended March 31, 2020

(In thousands, except for per ton data) Met All Other Consolidated

Coal revenues $362,403$39,057 $401,460

Less: Total Cost of coal sales (per table above) (340,897)(47,735) (388,632)

GAAP Coal margin $21,506 $(8,678)$12,828

Tons sold 3,327 622 3,949

GAAP Coal margin per ton $6.46 $(13.95)$3.25



GAAP Coal margin $21,506 $(8,678)$12,828

Add: Depreciation, depletion and amortization - production^ (1)41,722 5,540 47,262

Add: Accretion on asset retirement obligations 3,536 3,103 6,639

Add: Amortization of acquired intangibles, net 2,581 (2,070) 511

Add: Idled and closed mine costs 4,157 4,362 8,519

Non-GAAP Coal margin $73,502 $2,257 $75,759

Tons sold 3,327 622 3,949

Non-GAAP Coal margin per ton $22.09 $3.63 $19.18

^ Depreciation, depletion and amortization - production excludes the(1) depreciation, depletion and amortization related to selling, general and administrative functions.

Three Months Ended December 31, 2020

(In thousands, except for per ton data) Met All OtherConsolidated

Coal revenues $289,756$33,604$323,360

Less: Freight and handling fulfillment revenues (48,251) (1,548) (49,799)

Non-GAAP Coal revenues $241,505$32,056$273,561

Tons sold 3,210 536 3,746

Non-GAAP Coal sales realization per ton $75.24 $59.81 $73.03



Cost of coal sales (exclusive of items shown separately below) $273,984$27,847$301,831

Depreciation, depletion and amortization - production^ (1) 2,381 (6,649) (4,268)

Accretion on asset retirement obligations 3,328 3,231 6,559

Amortization of acquired intangibles, net 5,014 (266) 4,748

Total Cost of coal sales $284,707$24,163$308,870

Less: Freight and handling costs (48,251) (1,548) (49,799)

Less: Depreciation, depletion and amortization - production^ (1)(2,381) 6,649 4,268

Less: Accretion on asset retirement obligations (3,328) (3,231) (6,559)

Less: Amortization of acquired intangibles, net (5,014) 266 (4,748)

Less: Idled and closed mine costs (3,445) (2,698) (6,143)

Non-GAAP Cost of coal sales $222,288$23,601$245,889

Tons sold 3,210 536 3,746

Non-GAAP Cost of coal sales per ton $69.25 $44.03 $65.64

^ Depreciation, depletion and amortization - production excludes the(1) depreciation, depletion and amortization related to selling, general and administrative functions.

Three Months Ended December 31, 2020

(In thousands, except for per ton data) Met All OtherConsolidated

Coal revenues $289,756$33,604$ 323,360

Less: Total Cost of coal sales (per table above) (284,707)(24,163)(308,870)

GAAP Coal margin $5,049 $9,441 $ 14,490

Tons sold 3,210 536 3,746

GAAP Coal margin per ton $1.57 $17.61 $ 3.87



GAAP Coal margin $5,049 $9,441 $ 14,490

Add: Depreciation, depletion and amortization - production^ (1)2,381 (6,649) (4,268)

Add: Accretion on asset retirement obligations 3,328 3,231 6,559

Add: Amortization of acquired intangibles, net 5,014 (266) 4,748

Add: Idled and closed mine costs 3,445 2,698 6,143

Non-GAAP Coal margin $19,217 $8,455 $ 27,672

Tons sold 3,210 536 3,746

Non-GAAP Coal margin per ton $5.99 $15.77 $ 7.39

^ Depreciation, depletion and amortization - production excludes the(1) depreciation, depletion and amortization related to selling, general and administrative functions.

Three Months Ended March 31, 2021

(In thousands, except for per ton data) Met All OtherConsolidated

Non-GAAP Cost of coal sales $262,281$17,608$279,889

Less: cost of purchased coal sold (18,264) - (18,264)

Adjusted cost of produced coal sold $244,017$17,608$261,625

Produced tons sold 3,424 409 3,833

Adjusted cost of produced coal sold per ton^ (1)$71.27 $43.05 $68.26

^ Cost of produced coal sold per ton for our operations is calculated as(1) non-GAAP cost of produced coal sold divided by produced tons sold.

Three Months Ended March 31, 2020

(In thousands, except for per ton data) Met All OtherConsolidated

Non-GAAP Cost of coal sales $235,237$33,057$268,294

Less: cost of purchased coal sold (30,334) (893) (31,227)

Adjusted cost of produced coal sold $204,903$32,164$237,067

Produced tons sold 2,964 610 3,574

Adjusted cost of produced coal sold per ton^ (1)$69.13 $52.73 $66.33

^ Cost of produced coal sold per ton for our operations is calculated as(1) non-GAAP cost of produced coal sold divided by produced tons sold.

Three Months Ended December 31, 2020

(In thousands, except for per ton data) Met All OtherConsolidated

Non-GAAP Cost of coal sales $222,288 $23,601$245,889

Less: cost of purchased coal sold $(19,993)$(93) $(20,086)

Adjusted cost of produced coal sold $202,295 $23,508$225,803

Produced tons sold $2,939 $535 $3,474

Adjusted cost of produced coal sold per ton^ (1)$68.83 $43.94 $65.00

^ Cost of produced coal sold per ton for our operations is calculated as(1) non-GAAP cost of produced coal sold divided by produced tons sold.

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SOURCE Alpha Metallurgical Resources, Inc.