Alpha Metallurgical Resources Inc
For the period ended Sep 30, 2024. Filed Nov 1, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2024 · Filed Nov 1, 2024
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(15) Segment Information
As a result of the closure of Slabcamp, the Company’s last remaining thermal mine, in August 2023, the Company changed its method of allocating certain corporate level income and expense items among its operating segments starting in 2024. Certain expenses not previously allocated to operating segments (e.g. selling, general and administrative expenses) began to be allocated. Certain other income or expense items previously allocated to operating segments began to be fully allocated to the Company’s primary Met reportable segment. For comparability purposes, prior period segment information has been recast to conform to the current year presentation.
The Company’s mining operations are located within the Central Appalachian coal basin in Virginia and West Virginia. The Company’s strategic focus is on the production of metallurgical quality coal for sale to the steel industry. The Company’s reportable segment, Met, is comprised of the Company’s mining complexes which produce, as a primary product, metallurgical quality coal and thermal coal as a byproduct. The All Other category included the Company’s former CAPP – Thermal operating segment which was comprised of the Company’s mining complexes which produced, as a primary product, thermal quality coal. Segment operating results are regularly reviewed by the Chief Operating Decision Maker (“CODM”), who is the Chief Executive Officer of the Company.
Segment information and reconciliations to consolidated amounts for the three and nine months ended September 30, 2024 and 2023 are as follows:
| Three Months Ended September 30, | Nine Months Ended September 30, | |||
|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | |
| Coal revenues - Met | $669,783 | $731,481 | $2,331,196 | $2,452,462 |
| Other revenues - Met | 2,114 | 2,822 | 8,742 | 11,923 |
| Total revenues - Met | $671,897 | $734,303 | $2,339,938 | $2,464,385 |
| Coal revenues - All Other | — | 7,517 | — | 47,041 |
| Total revenues | $671,897 | $741,820 | $2,339,938 | $2,511,426 |
No asset information has been disclosed as the CODM does not regularly review asset information by segment.
A reconciliation of net income to Adjusted EBITDA for the three and nine months ended September 30, 2024 and 2023 is as follows:
| Three Months Ended September 30, | Nine Months Ended September 30, | |||
|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | |
| Net income | $3,804 | $93,814 | $189,708 | $545,940 |
| Interest expense | 1,041 | 1,746 | 3,228 | 5,322 |
| Interest income | (5,145) | (4,639) | (13,256) | (8,911) |
| Income tax (benefit) expense | (4,087) | 18,964 | 15,356 | 94,973 |
| Depreciation, depletion, and amortization | 42,414 | 32,582 | 126,495 | 94,231 |
| Non-cash stock compensation expense | 3,013 | 2,999 | 9,317 | 9,678 |
| Accretion on asset retirement obligations | 6,326 | 6,376 | 18,726 | 19,129 |
| Amortization of acquired intangibles, net | 1,675 | 2,069 | 5,025 | 6,458 |
| Adjusted EBITDA | $49,041 | $153,911 | $354,599 | $766,820 |
| Adjusted EBITDA - Met | $49,041 | $157,585 | $354,599 | $765,518 |
| Adjusted EBITDA - All Other | — | (3,674) | — | 1,302 |
| Total Adjusted EBITDA | $49,041 | $153,911 | $354,599 | $766,820 |
The Company markets produced, processed and purchased coal to customers in the United States and in international markets. Revenue is tracked within the Company’s accounting records based on the product destination. The following tables present additional information on our revenues and top customers:
| Three Months Ended September 30, | Nine Months Ended September 30, | |||
|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | |
| Total coal revenues | $669,783 | $738,998 | $2,331,196 | $2,499,503 |
| Total revenues | $671,897 | $741,820 | $2,339,938 | $2,511,426 |
| Export coal revenues | $512,904 | $514,597 | $1,861,065 | $1,809,300 |
| Export coal revenues as % of total coal revenues | 77% | 70% | 80% | 72% |
| Countries with export coal revenue exceeding 10% of total revenues | India, Brazil | India | India, Brazil | India |
| Top customer as % of total revenues | 16% | 13% | 16% | 12% |
| Top 10 customers as % of total revenues | 74% | 83% | 75% | 74% |
| Number of customers exceeding 10% of total revenues | 1 | 4 | 3 | 3 |
| As of September 30, | ||
|---|---|---|
| 2024 | 2023 | |
| Number of customers exceeding 10% of total trade accounts receivable, net | 2 | 4 |
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.