Segment Information | Segment Information The Company extracts, processes and markets steam and met coal from surface and deep mines for sale to electric utilities, steel and coke producers, and industrial customers. The Company conducts mining operations only in the United States with mines in Northern and Central Appalachia. The Company has three reportable segments: CAPP, NAPP and Trading and Logistics. CAPP consists of seven active mines and two preparation plants in Virginia, one active mine and one preparation plant in West Virginia, as well as expenses associated with certain closed mines. NAPP consists of one active mine in Pennsylvania and one preparation plant, as well as expenses associated with one closed mine. The Trading and Logistics segment primarily engages in coal trading activities and coal terminal services. In addition to the three reportable segments, the All Other category includes general corporate overhead and corporate assets and liabilities, the elimination of certain intercompany activity, and the Company’s discontinued operations. The operating results of these reportable segments are regularly reviewed by the Chief Operating Decision Maker (“CODM”), who is the Chief Executive Officer of the Company. Segment operating results and capital expenditures for the three months ended September 30, 2018 were as follows: Three Months Ended September 30, 2018 CAPP NAPP Trading and Logistics All Other Consolidated Total revenues $ 115,280 $ 60,944 $ 270,985 $ 662 $ 447,871 Depreciation, depletion, and amortization $ 5,658 $ 5,298 $ — $ 185 $ 11,141 Amortization of acquired intangibles, net $ — $ — $ 1,158 $ — $ 1,158 Adjusted EBITDA $ 30,990 $ 972 $ 16,907 $ (10,063 ) $ 38,806 Capital expenditures $ 7,984 $ 10,270 $ — $ 119 $ 18,373 Segment operating results and capital expenditures for the three months ended September 30, 2017 were as follows: Three Months Ended September 30, 2017 CAPP NAPP Trading and Logistics All Other Consolidated Total revenues $ 108,996 $ 66,625 $ 206,749 $ 168 $ 382,538 Depreciation, depletion, and amortization $ 2,736 $ 4,544 $ — $ 224 $ 7,504 Amortization of acquired intangibles, net $ — $ — $ 14,868 $ — $ 14,868 Adjusted EBITDA $ 34,433 $ 2,021 $ 15,652 $ (10,605 ) $ 41,501 Capital expenditures $ 3,645 $ 14,156 $ — $ — $ 17,801 Segment operating results and capital expenditures for the nine months ended September 30, 2018 were as follows: Nine Months Ended September 30, 2018 CAPP NAPP Trading and Logistics All Other Consolidated Total revenues $ 402,823 $ 196,173 $ 857,230 $ 2,895 $ 1,459,121 Depreciation, depletion, and amortization $ 17,636 $ 15,761 $ — $ 554 $ 33,951 Amortization of acquired intangibles, net $ — $ — $ 12,468 $ — $ 12,468 Adjusted EBITDA $ 152,058 $ 19,161 $ 83,093 $ (30,386 ) $ 223,926 Capital expenditures $ 23,829 $ 32,611 $ — $ 282 $ 56,722 Segment operating results and capital expenditures for the nine months ended September 30, 2017 were as follows: Nine Months Ended September 30, 2017 CAPP NAPP Trading and Logistics All Other Consolidated Total revenues $ 369,600 $ 243,605 $ 683,558 $ 562 $ 1,297,325 Depreciation, depletion, and amortization $ 13,447 $ 11,206 $ — $ 639 $ 25,292 Amortization of acquired intangibles, net $ — $ — $ 49,111 $ — $ 49,111 Adjusted EBITDA $ 146,692 $ 55,608 $ 66,694 $ (34,936 ) $ 234,058 Capital expenditures $ 10,834 $ 36,365 $ — $ 1,058 $ 48,257 The following table presents a reconciliation of net income (loss) to Adjusted EBITDA for the three months ended September 30, 2018 : Three Months Ended September 30, 2018 CAPP NAPP Trading and Logistics All Other Consolidated Net income (loss) from continuing operations $ 24,787 $ (4,765 ) $ 15,749 $ (21,760 ) $ 14,011 Interest expense 4 (490 ) — 9,040 8,554 Interest income (7 ) (12 ) — (488 ) (507 ) Income tax expense — — — 12 12 Depreciation, depletion and amortization 5,658 5,298 — 185 11,141 Merger related costs — — — 1,181 1,181 Non-cash stock compensation expense — — — 1,885 1,885 Gain on settlement of acquisition-related obligations — — — (118 ) (118 ) Accretion expense 548 941 — — 1,489 Amortization of acquired intangibles, net — — 1,158 — 1,158 Adjusted EBITDA (1) $ 30,990 $ 972 $ 16,907 $ (10,063 ) $ 38,806 (1) Pursuant to the PRB divestiture and classification as a discontinued operation, the Company is no longer presenting a PRB reporting segment. The former PRB reporting segment had Adjusted EBITDA of ($1,102) for the three months ended September 30, 2018 . The following table presents a reconciliation of net income (loss) to Adjusted EBITDA for the three months ended September 30, 2017 : Three Months Ended September 30, 2017 CAPP NAPP Trading and Logistics All Other Consolidated Net income (loss) from continuing operations $ 30,238 $ (3,300 ) $ 613 $ (17,821 ) $ 9,730 Interest expense 1 (264 ) — 8,729 8,466 Interest income (3 ) — — (40 ) (43 ) Income tax expense — — — (8,371 ) (8,371 ) Depreciation, depletion and amortization 2,736 4,544 — 224 7,504 Non-cash stock compensation expense — — 171 5,143 5,314 Mark-to-market adjustment - acquisition-related obligations — — — 839 839 Secondary offering costs — — — 1,061 1,061 Bargain purchase gain — — — (369 ) (369 ) Accretion expense 1,461 1,041 — — 2,502 Amortization of acquired intangibles, net — — 14,868 — 14,868 Adjusted EBITDA (1) (2) $ 34,433 $ 2,021 $ 15,652 $ (10,605 ) $ 41,501 (1) The Company’s Adjusted EBITDA calculation has been modified to add back non-cash stock compensation expense to align with industry peer group methodology. (2) Pursuant to the PRB divestiture and classification as a discontinued operation, the Company is no longer presenting a PRB reporting segment. The former PRB reporting segment had Adjusted EBITDA of $14,528 for the three months ended September 30, 2017 . The following table presents a reconciliation of net income (loss) to Adjusted EBITDA for the nine months ended September 30, 2018 : Nine Months Ended September 30, 2018 CAPP NAPP Trading and Logistics All Other Consolidated Net income (loss) from continuing operations $ 147,787 $ 1,440 $ 70,643 $ (72,917 ) $ 146,953 Interest expense 316 (839 ) — 27,061 26,538 Interest income (17 ) (24 ) (18 ) (770 ) (829 ) Income tax expense — — — 133 133 Depreciation, depletion and amortization 17,636 15,761 — 554 33,951 Merger related costs — — — 5,064 5,064 Management restructuring costs (1) — — — 2,659 2,659 Non-cash stock compensation expense — — — 8,240 8,240 Gain on settlement of acquisition-related obligations — — — (410 ) (410 ) Gain on sale of disposal group (2) (16,386 ) — — — (16,386 ) Accretion expense 2,722 2,823 — — 5,545 Amortization of acquired intangibles, net — — 12,468 — 12,468 Adjusted EBITDA (3) $ 152,058 $ 19,161 $ 83,093 $ (30,386 ) $ 223,926 (1) Management restructuring costs are related to severance expense associated with senior management changes in the nine months ended September 30, 2018 . (2) During the fourth quarter of 2017, the Company entered into an asset purchase agreement to sell a disposal group (comprised of property, plant and equipment and associated asset retirement obligations) within our CAPP segment. From the date the Company entered into the asset purchase agreement through the transaction close date, the property, plant and equipment and associated asset retirement obligations were classified as held for sale in amounts representing the fair value of the disposal group. Upon permit transfer, the transaction closed on April 2, 2018. The Company paid $10,000 in connection with the transaction, which was paid into escrow on March 27, 2018 and transferred to the buyer at the transaction close date, and expects to pay a series of additional cash payments in the aggregate amount of $1,500 , per the terms stated in the agreement, and recorded a gain on sale of $16,386 within gain on disposal of assets within the Condensed Consolidated Statements of Operations. (3) Pursuant to the PRB divestiture and classification as a discontinued operation, the Company is no longer presenting a PRB reporting segment. The former PRB reporting segment had Adjusted EBITDA of ($3,470) for the nine months ended September 30, 2018 . The following table presents a reconciliation of net (loss) income to Adjusted EBITDA for the nine months ended September 30, 2017 : Nine Months Ended September 30, 2017 CAPP NAPP Trading and Logistics All Other Consolidated Net income (loss) from continuing operations $ 128,584 $ 41,855 $ 17,203 $ (128,556 ) $ 59,086 Interest expense (92 ) (633 ) — 28,805 28,080 Interest income (8 ) — — (108 ) (116 ) Income tax expense — — — 7,440 7,440 Depreciation, depletion and amortization 13,447 11,206 — 639 25,292 Non-cash stock compensation expense — — 380 11,532 11,912 Mark-to-market adjustment - acquisition-related obligations — — — 3,221 3,221 Gain on settlement of acquisition-related obligations — — — (9,200 ) (9,200 ) Secondary offering costs — — — 4,499 4,499 Loss on early extinguishment of debt — — — 38,701 38,701 Bargain purchase gain — — — (1,011 ) (1,011 ) Accretion expense 4,384 3,123 — — 7,507 Amortization of acquired intangibles, net — — 49,111 — 49,111 Expenses related to Special Dividend 377 57 — 9,102 9,536 Adjusted EBITDA (1) (2) $ 146,692 $ 55,608 $ 66,694 $ (34,936 ) $ 234,058 (1) The Company’s Adjusted EBITDA calculation has been modified to add back non-cash stock compensation expense to align with industry peer group methodology. (2) Pursuant to the PRB divestiture and classification as a discontinued operation, the Company is no longer presenting a PRB reporting segment. The former PRB reporting segment had Adjusted EBITDA of $33,289 for the nine months ended September 30, 2017 . No asset information has been provided for these reportable segments as the CODM does not regularly review asset information by reportable segment. The Company markets produced, processed and purchased coal to customers in the United States and in international markets, primarily India, Brazil, France, Turkey, and Ukraine. Export coal revenues were the following: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 (1) 2018 2017 (1) Total coal revenues (1) $ 443,005 $ 380,670 $ 1,446,538 $ 1,291,489 Export coal revenues (1) (2) $ 384,597 $ 291,627 $ 1,267,642 $ 984,965 Export coal revenues as % of total coal revenues (1) 87 % 77 % 88 % 76 % (1) Amounts include freight and handling revenues. (2) The amounts for the three months ended September 30, 2018 include $62,929 , $58,402 , and $56,519 of export coal revenues, including freight and handling revenues, from external customers in India, Turkey, and Brazil, respectively, recorded within the CAPP, NAPP, and Trading and Logistics segments. The amounts for the nine months ended September 30, 2018 include $352,344 and $218,486 of export coal revenues, including freight and handling revenues, from external customers in India and Brazil, respectively, recorded within the CAPP, NAPP, and Trading and Logistics segments. The amounts for the three months ended September 30, 2017 include $68,206 and $36,867 of export coal revenues, including freight and handling revenues, from external customers in India and Brazil, recorded within the CAPP, NAPP, and Trading and Logistics segments. The amounts for the nine months ended September 30, 2017 include $268,924 and $125,464 of export coal revenues, including freight and handling revenues, from external customers in India and Italy, respectively, recorded within the CAPP, NAPP, and Trading and Logistics segments. Revenue is tracked within the Company’s accounting records based on the product destination. The Company sold 1,705 and 4,938 tons of coal purchased from third parties, excluding tons sold related to the Back-to-Back Coal Supply Agreements, for the three and nine months ended September 30, 2018 , respectively, representing approximately 44% and 41% , respectively, of total coal sales volume during such period. The Company sold 1,320 and 3,727 tons of coal purchased from third parties for the three and nine months ended September 30, 2017 , respectively, representing approximately 35% and 31% , respectively, of total coal sales volume during such period. The Company purchased a substantial portion of this coal from Alpha. After consummation of the mergers, coal sales from the former Alpha operations will no longer be considered part of the Trading and Logistics business. |