Exhibit 99.1
Natural Resource Partners L.P. 601 Jefferson St., Suite 3600, Houston, TX 77002 |  |
NEWS RELEASE
Natural Resource Partners L.P.
Reports First Quarter 2015 Results
Highlights
| • | Revenues of $109.7 million |
| • | Net income per unit of $0.14 |
| • | Distributable cash flow of $53.3 million |
| • | Adjusted EBITDA of $64.2 million |
HOUSTON, May 7, 2015 –Natural Resource Partners L.P. (NYSE:NRP)today reported first quarter 2015 revenues of $109.7 million, resulting in net income per unit of $0.14 compared to $80.3 million in revenues and net income per unit of $0.29 reported for the first quarter 2014. Distributable cash flow was $53.3 million in the first quarter 2015 compared to $38.9 million for 2014. NRP also reported Adjusted EBITDA of $64.2 million for first quarter 2015 versus $69.0 million for first quarter 2014.
“As announced on April 22, we are in the initial stages of implementing a long-term strategic plan to reduce NRP’s debt and enhance our liquidity through this difficult commodity cycle,” said Wyatt Hogan, President and Chief Operating Officer. “During the implementation of this long-term plan, we will remain focused on actively managing our assets and operations in a cost-efficient manner. As demonstrated by our first quarter 2015 results, we have diversified our sources of revenue across a more balanced portfolio of coal royalties, construction aggregates, soda ash and oil and gas, and believe that we are on the right path to achieving our long-term objective of growing NRP while improving our financial profile.”
Highlights | Quarter Ended | |||||||||||
| March 31, | March 31, | % | ||||||||||
| 2015 | 2014 | Change | ||||||||||
| (in thousands except per unit and per ton) | ||||||||||||
Revenues | ||||||||||||
Total revenues and other income | $ | 109,677 | $ | 80,309 | 37 | % | ||||||
Coal production (tons) | 11,108 | 12,252 | -9 | % | ||||||||
Average coal royalty revenue per ton | $ | 3.35 | $ | 3.55 | -6 | % | ||||||
Total coal related revenues | $ | 49,482 | $ | 52,373 | -6 | % | ||||||
Aggregates related revenue | $ | 28,946 | $ | 3,396 | 752 | % | ||||||
Oil and gas related revenue | $ | 15,230 | $ | 10,058 | 51 | % | ||||||
Equity in earnings of unconsolidated investment | $ | 12,523 | $ | 9,779 | 28 | % | ||||||
Operating Expenses | $ | 69,260 | $ | 27,870 | 149 | % | ||||||
Net income | ||||||||||||
Net income to limited partners | $ | 17,139 | $ | 31,953 | -46 | % | ||||||
Net income per common unit | $ | 0.14 | $ | 0.29 | -52 | % | ||||||
Weighted average common units outstanding | 122,300 | 109,848 | 11 | % | ||||||||
Net cash provided by operating activities | 55,472 | 38,630 | 44 | % | ||||||||
Distributable cash flow(1) | $ | 53,289 | $ | 38,927 | 37 | % | ||||||
Adjusted EBITDA(1) | $ | 64,204 | $ | 68,978 | -7 | % | ||||||
| (1) | See “Non-GAAP Financial Measures” and reconciliation tables at the end of the release. |
First Quarter 2015 compared to First Quarter 2014
Revenues and other income
Total revenues and other income for the first quarter 2015 increased 37% to $109.7 million from the same period of 2014 due primarily to increased aggregates related revenues and oil and gas related revenues as a result of the VantaCore construction aggregates and Sanish Field oil and gas acquisitions completed in the fourth quarter of 2014. These increases were partially offset by a decrease in coal related revenues as compared to the first quarter 2014.
| NRP Reports First Quarter 2015 Results | Page 2 of 14 |
The $25.6 million increase in aggregates related revenues included a $26.8 million increase attributable to VantaCore, partially offset by a slight decline in other aggregates related revenues. Equity in earnings of our unconsolidated investment in the soda ash business increased $2.7 million, or 28%, over the first quarter of 2014. In addition, oil and gas revenues increased $5.2 million to $15.2 million.
Coal related revenues decreased 6% to $49.5 million, due to both decreases in coal production volumes by NRP’s lessees (9%) and decreases in average coal royalty revenue per ton (6%) as compared to the first quarter 2014. The decrease in coal royalty revenues resulted primarily from a decrease in Northern Appalachian revenues, where coal reserves were exhausted at one higher revenue mine, and also lower sales volumes in the Illinois Basin. Metallurgical coal represented 33% of coal production and 40% of coal royalty revenues for the first quarter of 2015.
Operating Expenses
Total operating expenses increased $41.4 million to $69.3 million. We incurred $22.4 million of operating expenses as well as $2.7 million of general and administrative expenses related to VantaCore’s operating construction aggregates business. Depreciation, depletion and amortization increased $10.7 million to $25.4 million mainly due to our recent acquisitions.
Net Income
Net income attributable to the limited partners and net income per unit decreased 46% and 52% respectively in the first quarter 2015 compared to the same period in 2014. In addition to the $12.0 million decrease in income from operations, net income per unit was also lower as a result of an increase in the number of common units outstanding in 2015 versus the same period in 2014.
Distributable Cash Flow
Distributable cash flow increased by 37%, or $14.4 million, to $53.3 million in the first quarter 2015, mainly due to timing of cash payments received by our aggregates related business and approximately $5.2 million related to the sale of some minerals rights and assets. In addition, for the first time, NRP has reduced distributable cash flow for maintenance capital expenditures in the amount of $8.5 million for the first quarter of 2015. A portion of the capital expenditures associated with both our oil and gas working interest business and VantaCore are maintenance capital expenditures, which are capital expenditures made to maintain the long-term production capacity of those businesses. Maintenance capital expenditures are projected to be approximately $22 million for 2015, the majority of which are expected to be related to our Williston Basin oil and gas non-operated working interests and incurred primarily in the first half of the year.
| NRP Reports First Quarter 2015 Results | Page 3 of 14 |
Adjusted EBITDA
Adjusted EBITDA declined approximately $4.8 million in the first quarter 2015 to $64.2 million, compared to the $69.0 million generated in the same period in 2014. The decrease is mainly related to decreased coal related revenues.
First Quarter 2015 compared to Fourth Quarter 2014
Highlights | Quarter Ended | |||||||||||
| March 31 | December 31 | % Change | ||||||||||
| (in thousands, except per ton and per unit) | ||||||||||||
Revenues and other income | ||||||||||||
Total revenues and other income | $ | 109,677 | $ | 137,273 | -20 | % | ||||||
Coal production (tons) | 11,108 | 12,986 | -14 | % | ||||||||
Average coal royalty revenue per ton | $ | 3.35 | $ | 3.39 | -1 | % | ||||||
Total coal related revenue | $ | 49,482 | $ | 53,797 | -8 | % | ||||||
Aggregates related revenue | $ | 28,946 | $ | 44,510 | -35 | % | ||||||
Oil and gas related revenue | $ | 15,230 | $ | 22,085 | -31 | % | ||||||
Equity in earnings of unconsolidated investment | $ | 12,523 | $ | 12,551 | 0 | % | ||||||
Operating expenses | $ | 69,260 | $ | 106,223 | -35 | % | ||||||
Net income | ||||||||||||
Net income to limited partners | $ | 17,139 | $ | 8,472 | 102 | % | ||||||
Net income to the limited partners, before considering any impairments(1) | $ | 17,139 | $ | 28,645 | -40 | % | ||||||
Net income per unit | $ | 0.14 | $ | 0.07 | 100 | % | ||||||
Net income per unit, before considering any impairments(1) | $ | 0.14 | $ | 0.24 | -42 | % | ||||||
Average units outstanding | 122,300 | 121,449 | 1 | % | ||||||||
Net cash provided by operating activities | 55,472 | 53,659 | 3 | % | ||||||||
Distributable cash flow(1) | $ | 53,289 | $ | 56,066 | -5 | % | ||||||
Adjusted EBITDA(1) | $ | 64,204 | $ | 80,143 | -20 | % | ||||||
| (1) | See “Non-GAAP Financial Measures” and reconciliation tables at the end of the release. |
Revenues and other income
Total revenues and other income for the first quarter of 2015 decreased 20%, to $109.7 million from the fourth quarter of 2014, mainly due to decreases in coal related revenues, a seasonal decline in aggregates related revenues and lower oil and gas revenues. The decrease in coal related revenues resulted from a reduction of 1.9 million tons in production offset partially by recognition of minimums as revenue and condemnation payments. Aggregates related revenues from VantaCore were lower due to winter weather conditions and are expected to improve during the remainder of 2015. While oil and gas production improved modestly, prices declined significantly.
Operating Expenses
Operating expenses declined $37.0 million in the first quarter of 2015 from the previous quarter primarily due to a $20.6 million impairment charge taken in the fourth quarter and $9.9 million of seasonally reduced aggregates operating expenses.
Net Income
Net income to the limited partners decreased 40% to $17.1 million and net income per unit decreased 42% to $0.14 in the first quarter before considering impairments taken in the fourth quarter. This decrease was mainly due to seasonally lower aggregates income, lower oil and gas prices, and lower coal production.
Distributable Cash Flow
Distributable cash flow decreased $2.8 million in the first quarter from the fourth quarter mainly due to the reserve for maintenance capital expenditures of $8.5 million partially offset by asset sales.
Adjusted EBITDA
Adjusted EBITDA for the first quarter 2015 decreased 20% to $64.2 million from the $80.1 million generated in the fourth quarter 2014. This decrease was due to lower income from operations as described above.
Long-Term Strategic Plan and Liquidity
On April 22, 2015, NRP announced its long-term strategic plan to strengthen its balance sheet and enhance liquidity. This plan set forth goals to reduce debt and improve various credit metrics by the end of 2017. At March 31, 2015, NRP had cash of $33.3 million. In addition, NRP currently has $75 million available under Opco’s revolving credit facility.
| NRP Reports First Quarter 2015 Results | Page 4 of 14 |
NRP’s cash balance and distributable cash flow are typically lower during the first quarter of each year primarily due to significant cash payments during the quarter for semi-annual interest payments and annual long-term incentive plan payments.
Distributions
On April 22, 2015, as part of NRP’s long-term strategic plan, the Board of Directors of NRP’s general partner declared a reduced quarterly distribution of $0.09 per unit for the first quarter 2015. We intend to use the cash savings from this reduction of approximately $130 million on an annualized basis to repay debt. The distribution is payable on May 14, 2015 to unitholders of record on May 5, 2015.
Company Profile
Natural Resource Partners L.P. is a master limited partnership headquartered in Houston, TX. NRP is a diversified natural resource company that owns interests in oil and gas, coal, aggregates and industrial minerals across the United States. A large percentage of NRP’s income from operations is generated from royalties and other passive income. In addition, NRP owns an equity investment in OCI Wyoming, a trona/soda ash operation, owns non-operated working interests in oil and gas properties and owns VantaCore, making NRP one of the top 25 aggregates producers in the United States.
For additional information, please contact Kathy H. Roberts at 713-751-7555 orkroberts@nrplp.com. Further information about NRP is available on the partnership’s website athttp://www.nrplp.com.
Non-GAAP Financial Measures
Adjusted EBITDA is a non-GAAP financial measure that we define as net income less equity earnings in unconsolidated investment; plus distributions from equity earnings in unconsolidated investment, interest expense, gross, depreciation, depletion and amortization, and asset impairments. Adjusted EBITDA, as used and defined by us, may not be comparable to similarly titled measures employed by other companies and is not a measure of performance calculated in accordance with GAAP. Adjusted EBITDA should not be considered in isolation or as a substitute for operating income, net income or loss, cash flows provided by operating, investing and financial activities, or other income or cash flow statement data prepared in accordance with GAAP. Adjusted EBITDA provides no information regarding a partnership’s capital structure, borrowings, interest costs, capital expenditures, and working capital movement or tax positions. Adjusted EBITDA does not represent funds available for discretionary use because those funds may be required for debt service, capital expenditures, working capital and other commitments and obligations. Our management team believes Adjusted EBITDA is useful in evaluating our financial performance because this measure is widely used by financial analysts, investors and rating agencies for comparative purposes. Adjusted EBITDA is also a financial measure widely used by investors in the high-yield bond market. There are significant limitations to using Adjusted EBITDA as a measure of performance, including the inability to analyze the effect of certain recurring items that materially
| NRP Reports First Quarter 2015 Results | Page 5 of 14 |
affect our net income or loss, the lack of comparability of results of operations of different companies and the different methods of calculating Adjusted EBITDA reported by different companies. Reconciliations of adjusted EBITDA to net income are included in the table attached to this release.
“Distributable cash flow” represents cash flow from operations, plus returns on unconsolidated equity investments, proceeds from sales of assets, and returns on direct financing lease and contractual overrides, less maintenance capital expenditures. Distributable cash flow is a “non-GAAP financial measure” that is presented because management believes it is a useful adjunct to net cash provided by operating activities under GAAP. Distributable cash flow is a significant liquidity metric that is an indicator of NRP’s ability to make quarterly cash distributions to its partners. Distributable cash flow is also the quantitative standard used throughout the investment community with respect to publicly traded partnerships. Distributable cash flow is not a measure of financial performance under GAAP and should not be considered as an alternative to cash flows from operating, investing or financing activities. A reconciliation of historical distributable cash flow to net cash provided by operating activities is included in the tables attached to this release. Distributable cash flow may not be calculated the same for NRP as other companies.
Forward-Looking Statements
This press release includes “forward-looking statements” as defined by the Securities and Exchange Commission. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the partnership expects, believes or anticipates will or may occur in the future are forward-looking statements. These statements are based on certain assumptions made by the partnership based on its experience and perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the partnership. These risks include, but are not limited to, commodity prices; decreases in demand for coal, oil, natural gas, and aggregates and industrial minerals, including trona/soda ash; changes in operating conditions and costs; production cuts by our lessees; the pace of development of our oil and natural gas properties; unanticipated geologic problems; our liquidity and access to capital and financing sources; changes in the legislative or regulatory environment and other factors detailed in Natural Resource Partners’ Securities and Exchange Commission filings. Natural Resource Partners L.P. has no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
15-05
-Financial statements follow-
| NRP Reports First Quarter 2015 Results | Page 6 of 14 |
Natural Resource Partners L.P.
Operating Statistics—Coal Related Revenue
(in thousands except per ton data)
| Quarter Ended | ||||||||
| March 31, | March 31, | |||||||
| 2015 | 2014 | |||||||
| (unaudited) | ||||||||
Regional Statistics | ||||||||
Coal royalty production (tons): | ||||||||
Appalachia | ||||||||
Northern | 1,745 | 2,651 | ||||||
Central | 4,384 | 4,376 | ||||||
Southern | 974 | 984 | ||||||
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Total Appalachia | 7,103 | 8,011 | ||||||
Illinois Basin | 2,584 | 3,122 | ||||||
Northern Powder River Basin | 1,304 | 879 | ||||||
Gulf Coast | 117 | 240 | ||||||
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Total | 11,108 | 12,252 | ||||||
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Average royalty revenue per ton: | ||||||||
Appalachia | ||||||||
Northern | $ | 0.36 | $ | 0.81 | ||||
Central | 3.99 | 4.58 | ||||||
Southern | 4.81 | 5.55 | ||||||
Total Appalachia | 3.21 | 3.45 | ||||||
Illinois Basin | 4.05 | 3.99 | ||||||
Northern Powder River Basin | 2.69 | 2.97 | ||||||
Gulf Coast | 3.52 | 3.40 | ||||||
Combined average royalty revenue per ton | $ | 3.35 | $ | 3.55 | ||||
Coal royalty revenues: | ||||||||
Appalachia | ||||||||
Northern | $ | 634 | $ | 2,139 | ||||
Central | 17,506 | 20,038 | ||||||
Southern | 4,686 | 5,464 | ||||||
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Total Appalachia | $ | 22,826 | $ | 27,641 | ||||
Illinois Basin | 10,467 | 12,470 | ||||||
Northern Powder River Basin | 3,507 | 2,610 | ||||||
Gulf Coast | 412 | 815 | ||||||
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Total coal royalty revenues | $ | 37,212 | $ | 43,536 | ||||
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Other coal related revenues: | ||||||||
Override revenue | 691 | 1,343 | ||||||
Transportation and processing fees | 4,597 | 5,097 | ||||||
Minimums recognized as revenue | 4,540 | 1,470 | ||||||
DOH—coal property sale | 1,665 | — | ||||||
Wheelage | 777 | 927 | ||||||
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Total other coal related revenues | $ | 12,270 | $ | 8,837 | ||||
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Total coal related revenues | $ | 49,482 | $ | 52,373 | ||||
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Coal related revenues | $ | 30,421 | $ | 33,646 | ||||
Coal related revenues—affiliates | 19,061 | 18,727 | ||||||
| NRP Reports First Quarter 2015 Results | Page 7 of 14 |
Natural Resource Partners L.P.
Operating Statistics—Aggregates and Industrial Minerals
(in thousands)
| Quarter Ended | ||||||||
| March 31, | March 31, | |||||||
| 2015 | 2014 | |||||||
| (unaudited) | ||||||||
VantaCore | ||||||||
Tonnage Sold | 1,486 | — | ||||||
Revenues | $ | 26,773 | $ | — | ||||
Operating expenses | $ | 22,407 | $ | — | ||||
Aggregates royalty revenues and production | ||||||||
Tonnage | 633 | 1,215 | ||||||
Aggregate royalty revenues | $ | 444 | $ | 1,481 | ||||
Other aggregate related revenue | ||||||||
Override revenue | $ | 1,434 | $ | 1,028 | ||||
Bonus revenue | — | — | ||||||
Processing fees | 153 | 163 | ||||||
Minimums recognized as revenue | 8 | 616 | ||||||
Wheelage | 134 | 108 | ||||||
Other aggregate related revenue | $ | 1,729 | $ | 1,915 | ||||
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Total aggregate related revenues | $ | 28,946 | $ | 3,396 | ||||
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Soda ash revenues and distributions | ||||||||
Equity in earnings of unconsolidated investment | $ | 12,523 | $ | 9,779 | ||||
Cash distributions from equity earnings in unconsolidated investment | $ | 10,903 | $ | 11,645 | ||||
| NRP Reports First Quarter 2015 Results | Page 8 of 14 |
Natural Resource Partners L.P.
Operating Statistics—Oil and Gas
($ in thousands)
| Quarter Ended | ||||||||
| March 31, | March 31, | |||||||
| 2015 | 2014 | |||||||
| (unaudited) | ||||||||
Williston Basin non-operated working interests | ||||||||
Production volumes | ||||||||
Oil (MBbls) | 307 | 68 | ||||||
Natural gas (Mcf) | 221 | 15 | ||||||
NGL (MBoe) | 40 | 3 | ||||||
Average sales price per unit | ||||||||
Oil ($/Bbl) | 39.34 | 105.53 | ||||||
Natural gas ($/Mcf) | 2.71 | 5.73 | ||||||
NGL ($/Boe) | 12.28 | 39.00 | ||||||
Revenues | ||||||||
Oil | $ | 12,076 | 7,176 | |||||
Natural gas | 598 | 86 | ||||||
NGL | 491 | 117 | ||||||
Non-production revenue | 450 | — | ||||||
Total | $ | 13,615 | $ | 7,379 | ||||
Other oil and gas related revenues | ||||||||
Royalty and overriding revenues | $ | 1,615 | 2,679 | |||||
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Total oil and gas related revenues | $ | 15,230 | $ | 10,058 | ||||
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| NRP Reports First Quarter 2015 Results | Page 9 of 14 |
Natural Resource Partners L.P.
Consolidated Statements of Comprehensive Income
(in thousands, except per unit data)
| Quarter Ended | ||||||||
| March 31, | March 31, | |||||||
| 2015 | 2014 | |||||||
| (unaudited) | ||||||||
Revenues and other income: | ||||||||
Coal related revenues | $ | 30,421 | $ | 33,646 | ||||
Coal related revenues—affiliates | 19,061 | 18,727 | ||||||
Aggregate related revenues | 28,946 | 3,396 | ||||||
Oil and gas related revenues | 15,230 | 10,058 | ||||||
Equity in earnings of unconsolidated investment | 12,523 | 9,779 | ||||||
Property taxes | 3,004 | 3,967 | ||||||
Other | 492 | 736 | ||||||
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Total revenues and other income | 109,677 | 80,309 | ||||||
Operating expenses: | ||||||||
Coal related expenses | 1,321 | 577 | ||||||
Aggregate related expenses | 22,407 | 73 | ||||||
Oil and gas related expenses | 3,762 | 1,921 | ||||||
General and administrative | 7,454 | 2,690 | ||||||
General and administrative—affiliates | 3,786 | 3,094 | ||||||
Depreciation, depletion and amortization | 25,392 | 14,647 | ||||||
Property, franchise and other taxes | 5,138 | 4,868 | ||||||
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Total operating expenses | 69,260 | 27,870 | ||||||
Income from operations | 40,417 | 52,439 | ||||||
Other income (expense) | ||||||||
Interest expense | (22,943 | ) | (19,860 | ) | ||||
Interest income | 15 | 26 | ||||||
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Other expense, net | (22,928 | ) | (19,834 | ) | ||||
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Net Income | $ | 17,489 | $ | 32,605 | ||||
Less: net income attributable to non-controlling interest | — | — | ||||||
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Net income attributable to NRP | $ | 17,489 | $ | 32,605 | ||||
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Net income attributable to partners: | ||||||||
Limited partners | $ | 17,139 | $ | 31,953 | ||||
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General partner | $ | 350 | $ | 652 | ||||
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Basic and diluted net income per common unit | $ | 0.14 | $ | 0.29 | ||||
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Weighted average number of units outstanding: | 122,300 | 109,848 | ||||||
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Net income | $ | 17,489 | $ | 32,605 | ||||
Comprehensive loss from unconsolidated investment and other | (965 | ) | (101 | ) | ||||
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Comprehensive income attributable to NRP | $ | 16,524 | $ | 32,504 | ||||
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| NRP Reports First Quarter 2015 Results | Page 10 of 14 |
Natural Resource Partners L.P.
Consolidated Statements of Cash Flow
(in thousands, except per unit data)
| Quarter Ended | ||||||||
| March 31, | March 31, | |||||||
| 2015 | 2014 | |||||||
| (unaudited) | ||||||||
Cash flows from operating activities: |
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Net income | $ | 17,489 | $ | 32,605 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation, depletion and amortization | 25,392 | 14,647 | ||||||
Equity earnings from unconsolidated investment | (12,523 | ) | (9,779 | ) | ||||
Distributions from equity earnings from unconsolidated investments | 10,903 | 11,645 | ||||||
Other, net | (1,010 | ) | 747 | |||||
Other net, affiliates | 7 | — | ||||||
Change in operating assets and liabilities: | ||||||||
Accounts receivable | 15,110 | (4,262 | ) | |||||
Accounts receivable—affiliates | 3,643 | (3,098 | ) | |||||
Accounts payable | (2,642 | ) | (1,568 | ) | ||||
Accounts payable—affiliates | (14 | ) | 478 | |||||
Accrued liabilities | 921 | 1,256 | ||||||
Deferred revenue | 5,845 | 330 | ||||||
Deferred revenue—affiliates | (738 | ) | 3,412 | |||||
Accrued incentive plan expenses | (6,275 | ) | (8,065 | ) | ||||
Other items, net | 103 | (18 | ) | |||||
Other items, net—affiliates | (739 | ) | 300 | |||||
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Net cash provided by operating activities: | 55,472 | 38,630 | ||||||
Cash flows from investing activities: | ||||||||
Acquisition of mineral rights | (16,788 | ) | (1,804 | ) | ||||
Acquisition of plant and equipment | (1,365 | ) | — | |||||
Proceeds from sale of mineral rights | 4,261 | — | ||||||
Proceeds from sale of plant and equipment | 905 | — | ||||||
Return on direct financing lease and contractual override—affiliate | 1,137 | 297 | ||||||
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Net cash used in investing activities | (11,850 | ) | (1,507 | ) | ||||
Cash flows from financing activities: | ||||||||
Proceeds from loans | 25,000 | 2,000 | ||||||
Repayment of loans | (41,166 | ) | (41,166 | ) | ||||
Proceeds from issuance of common units | — | 4,513 | ||||||
Capital contribution by general partner | — | 92 | ||||||
Distributions to non-controlling interests | (662 | ) | (974 | ) | ||||
Distributions to partners | (43,678 | ) | (39,218 | ) | ||||
Other | 83 | (57 | ) | |||||
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Net cash used in financing activities | (60,423 | ) | (74,810 | ) | ||||
Net decrease in cash and cash equivalents | (16,801 | ) | (37,687 | ) | ||||
Cash and cash equivalents at beginning of period | 50,076 | 92,513 | ||||||
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Cash and cash equivalents at end of period | $ | 33,275 | $ | 54,826 | ||||
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Supplemental cash flow information: | ||||||||
Cash paid during the period for interest | $ | 14,344 | $ | 14,703 | ||||
Plant, equipment and mineral rights funded with accounts payable or accrued liabilities | $ | 3,761 | $ | — | ||||
| NRP Reports First Quarter 2015 Results | Page 11 of 14 |
Natural Resource Partners L.P.
Consolidated Balance Sheets
(in thousands, except for unit information)
| March 31 | December 31 | |||||||
| 2015 | 2014 | |||||||
| (unaudited) | (unaudited) | |||||||
| ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 33,275 | $ | 50,076 | ||||
Accounts receivable, net | 52,323 | 66,455 | ||||||
Accounts receivable—affiliates | 5,851 | 9,494 | ||||||
Inventory | 5,790 | 5,814 | ||||||
Prepaid expenses and other | 4,154 | 4,279 | ||||||
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Total current assets | 101,393 | 136,118 | ||||||
Land | 25,243 | 25,243 | ||||||
Plant and equipment, net | 78,584 | 60,093 | ||||||
Mineral rights, net | 1,773,449 | 1,781,852 | ||||||
Intangible assets, net | 59,713 | 60,733 | ||||||
Equity in unconsolidated investment | 262,722 | 264,020 | ||||||
Long-term contracts receivable—affiliate | 49,610 | 50,008 | ||||||
Goodwill | 29,465 | 52,012 | ||||||
Other assets | 13,746 | 14,645 | ||||||
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Total assets | $ | 2,393,925 | $ | 2,444,724 | ||||
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| LIABILITIES AND CAPITAL | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 16,862 | $ | 22,465 | ||||
Accounts payable—affiliates | 936 | 950 | ||||||
Accrued liabilities | 50,772 | 43,533 | ||||||
Current portion of long-term debt | 155,983 | 80,983 | ||||||
|
|
|
| |||||
Total current liabilities | 224,553 | 147,931 | ||||||
Deferred revenue | 79,052 | 73,207 | ||||||
Deferred revenue—affiliates | 86,315 | 87,053 | ||||||
Long-term debt, net | 1,283,352 | 1,374,336 | ||||||
Long-term debt, net—affiliate | 19,911 | 19,904 | ||||||
Other non-current liabilities | 8,403 | 22,138 | ||||||
Partners’ capital: | ||||||||
Common unitholders’ interest (122,299,825 units outstanding) | 683,354 | 709,019 | ||||||
General partner’s interest | 11,721 | 12,245 | ||||||
Accumulated other comprehensive loss | (1,424 | ) | (459 | ) | ||||
|
|
|
| |||||
Total partners’ capital | 693,651 | 720,805 | ||||||
Non-controlling interest | (1,312 | ) | (650 | ) | ||||
|
|
|
| |||||
Total capital | 692,339 | 720,155 | ||||||
|
|
|
| |||||
Total liabilities and capital | $ | 2,393,925 | $ | 2,444,724 | ||||
|
|
|
| |||||
| NRP Reports First Quarter 2015 Results | Page 12 of 14 |
Natural Resource Partners L.P.
Reconciliation of GAAP Financial Measures
to Non-GAAP Financial Measures
(in thousands)
Reconciliation of GAAP “Net cash provided by operating activities”
to Non-GAAP “Distributable cash flow”
| Quarter Ended | ||||||||
| March 31, | March 31, | |||||||
| 2015 | 2014 | |||||||
| (unaudited) | ||||||||
Net cash provided by operating activities | $ | 55,472 | $ | 38,630 | ||||
Return on direct financing lease and contractual overrides | 1,137 | 297 | ||||||
Proceeds from sale of mineral rights | 4,261 | — | ||||||
Proceeds from sale of plant and equipment | 905 | — | ||||||
Maintenance capital expenditures | (8,486 | ) | — | |||||
|
|
|
| |||||
Distributable cash flow | $ | 53,289 | $ | 38,927 | ||||
|
|
|
| |||||
Reconciliation of GAAP “Net cash provided by operating activities”
to Non-GAAP “Distributable cash flow”
| Quarter Ended | ||||||||
|
|
|
| |||||
| March 31, | December 31, | |||||||
| 2015 | 2014 | |||||||
| (unaudited) | ||||||||
Net cash provided by operating activities | $ | 55,472 | $ | 53,659 | ||||
Return on direct financing lease and contractual overrides | 1,137 | 994 | ||||||
Proceeds from sale of mineral rights | 4,261 | — | ||||||
Proceeds from sale of plant and equipment | 905 | 1,413 | ||||||
Maintenance capital expenditures | (8,486 | ) | — | |||||
|
|
|
| |||||
Distributable cash flow | $ | 53,289 | $ | 56,066 | ||||
|
|
|
| |||||
| NRP Reports First Quarter 2015 Results | Page 13 of 14 |
Natural Resource Partners L.P.
Reconciliation of GAAP Financial Measures
to Non-GAAP Financial Measures
(in thousands)
Reconciliation of GAAP “Net income”
to Non-GAAP “Adjusted EBITDA”
| Quarter Ended | ||||||||
| March 31, | March 31, | |||||||
| 2015 | 2014 | |||||||
| (unaudited) | ||||||||
Net income | $ | 17,489 | $ | 32,605 | ||||
Less equity in earnings of unconsolidated investment | (12,523 | ) | (9,779 | ) | ||||
Add distributions from equity earnings in unconsolidated investment | 10,903 | 11,645 | ||||||
Add depreciation, depletion and amortization | 25,392 | 14,647 | ||||||
Add interest expense, gross | 22,943 | 19,860 | ||||||
|
|
|
| |||||
Adjusted EBITDA | $ | 64,204 | $ | 68,978 | ||||
|
|
|
| |||||
Reconciliation of GAAP “Net income”
to Non-GAAP “Adjusted EBITDA”
| Quarter Ended | ||||||||
| March 31, | December 31, | |||||||
| 2015 | 2014 | |||||||
| (unaudited) | ||||||||
Net income | $ | 17,489 | $ | 8,645 | ||||
Less equity in earnings of unconsolidated investment | (12,523 | ) | (12,551 | ) | ||||
Add distributions from equity earnings in unconsolidated investment | 10,903 | 10,780 | ||||||
Add depreciation, depletion and amortization | 25,392 | 30,258 | ||||||
Add asset impairments | — | 20,585 | ||||||
Add interest expense, gross | 22,943 | 22,426 | ||||||
|
|
|
| |||||
Adjusted EBITDA | $ | 64,204 | $ | 80,143 | ||||
|
|
|
| |||||
| NRP Reports First Quarter 2015 Results | Page 14 of 14 |
Natural Resource Partners L.P.
Reconciliation of GAAP “Total operating costs and expenses”
to Non-GAAP “Total operating expenses before considering any impairments”
(in thousands)
| Quarter Ended | ||||||||||||
| December 31, | March 31, | March 31, | ||||||||||
| 2014 | 2015 | 2014 | ||||||||||
| (unaudited) | ||||||||||||
Operating expenses | ||||||||||||
Total operating expenses as reported | $ | 106,223 | $ | 69,260 | $ | 27,870 | ||||||
Impairments | (20,585 | ) | — | — | ||||||||
Total operating costs before considering any impairments | 85,638 | 69,260 | 27,870 | |||||||||
Reconciliation of GAAP “Net income attributable to the limited partners”
to Non-GAAP “Net income attributable to the limited partners before considering any impairments”
(in thousands)
| Quarter Ended | ||||||||||||
| December 31, | March 31, | March 31, | ||||||||||
| 2014 | 2015 | 2014 | ||||||||||
| (unaudited) | ||||||||||||
Net income attributable to the limited partners | ||||||||||||
Net income as reported | $ | 8,645 | $ | 17,489 | $ | 32,605 | ||||||
Impairments | 20,585 | — | — | |||||||||
Net income before considering any impairments | $ | 29,230 | $ | 17,489 | $ | 32,605 | ||||||
Net income, before considering any impairments, attributable to: | ||||||||||||
General partner | $ | 585 | $ | 350 | $ | 652 | ||||||
Limited partners | $ | 28,645 | $ | 17,139 | $ | 31,953 | ||||||
Reconciliation of GAAP “Basic and diluted net income per unit”
to Non-GAAP “Net income per unit before considering any impairments”
(in thousands)
| Quarter Ended | ||||||||||||
| December 31, | March 31, | March 31, | ||||||||||
| 2014 | 2015 | 2014 | ||||||||||
| (unaudited) | ||||||||||||
Net income per unit | ||||||||||||
Net income per unit as reported | $ | 0.07 | $ | 0.14 | $ | 0.29 | ||||||
Adjustment for impairments | 0.17 | — | — | |||||||||
Net income per limited partner unit, before considering any impairments | 0.24 | 0.14 | 0.29 | |||||||||
Weighted number of units outstanding | 121,449 | 122,300 | 109,848 | |||||||||
| * | Numbers may not add due to rounding |
-end-