Natural Resource Partners L.P. Reports Fourth Quarter and Full Year 2019 Results

HOUSTON--()--Natural Resource Partners L.P. (NYSE:NRP) today reported fourth quarter and full year 2019 results as follows:

 

 

Three Months Ended

 

Year Ended

 

 

December 31,

 

December 31,

(In thousands) (Unaudited)

 

2019

 

2018

 

2019

 

2018

Net income (loss) from continuing operations (1)

 

$

(119,448

)

 

$

35,092

 

 

$

(25,414

)

 

$

122,360

 

Asset impairments

 

147,730

 

 

18,038

 

 

148,214

 

 

18,280

 

Net income from continuing operations excluding asset impairments (1)

 

$

28,282

 

 

$

53,130

 

 

$

122,800

 

 

$

140,640

 

Adjusted EBITDA (1)(2)

 

37,974

 

 

72,936

 

 

199,228

 

 

230,241

 

Cash flow provided by (used in) continuing operations:

 

 

 

 

 

 

 

 

Operating activities

 

19,394

 

 

80,489

 

 

137,319

 

 

178,282

 

Investing activities

 

259

 

 

2,078

 

 

8,221

 

 

7,607

 

Financing activities

 

(33,551

)

 

64,856

 

 

(253,305

)

 

(6,839

)

Distributable cash flow (1)(2)(3)

 

19,602

 

 

280,658

 

 

144,933

 

 

383,980

 

Free cash flow (1)(2)

 

19,764

 

 

80,944

 

 

139,040

 

 

183,440

 

Cash flow cushion (last twelve months) (2)

 

 

 

 

 

7,762

 

 

16,080

 

________________________

(1)

Includes $25.0 million from the Hillsboro litigation settlement in NRP's Coal Royalty and Other Segment for the three months and year ended December 31, 2018.

(2)

See "Non-GAAP Financial Measures" and reconciliation tables at the end of this release.

(3)

Includes net proceeds from the sale of NRP's construction aggregates business which were classified as investing cash flows from discontinued operations.

"Despite a weakened coal market, we generated $139 million of free cash flow and repaid $163 million of debt in 2019," said Craig Nunez, NRP's President and Chief Operating Officer. "We continue to maintain strong cash balances and liquidity, and our efforts to de-lever and de-risk the Partnership over the past five years have prepared us to operate through this downturn.”

NRP's liquidity was $198.3 million at December 31, 2019, consisting of $98.3 million of cash and $100.0 million of borrowing capacity available under its revolving credit facility. At December 31, 2019, NRP's consolidated Debt-to-Adjusted EBITDA ratio was 2.6x.

NRP declared a cash distribution of $0.45 per common unit and a cash distribution of $7.5 million on its preferred units for the fourth quarter of 2019.

Segment Results

Coal Royalty and Other

NRP's Coal Royalty and Other segment revenues and other income in the fourth quarter and full year 2019 was lower by $35.8 million and $13.4 million, respectively, as compared to the prior year periods primarily due to weakened metallurgical and thermal coal markets in 2019 and the $25 million one-time payment from the Hillsboro litigation settlement in the fourth quarter of 2018. These decreases were partially offset by increased minimum lease straight-line revenues primarily related to the Hillsboro property that we began to recognize in 2019 after the completion of the Hillsboro litigation settlement with Foresight. Additionally, full year 2019 results benefited from a $15.9 million increase in revenues primarily related to lessee forfeitures of recoupable balances from minimums paid in prior periods. While a number of NRP's lessees went through the bankruptcy process in 2019, there was minimal impact to NRP as bankrupt lessees bad debt expense was offset by increased lease amendment fees associated with bankruptcies.

NRP also recorded $147.7 million and $148.2 million in non-cash asset impairment expense in the fourth quarter and full year 2019, respectively, primarily as a result of the deterioration in thermal coal markets, lessee capital constraints and the termination of certain thermal coal leases.

Approximately 60% and 65% of coal royalty revenues and approximately 45% and 50% of coal royalty sales volumes were derived from metallurgical coal during the three months and year ended December 31, 2019, respectively.

Soda Ash

Distributions received from Ciner Wyoming were $6.4 million and $31.9 million in the fourth quarter and full year 2019, respectively, as compared to $9.8 million and $46.6 million in the fourth quarter and full year 2018, respectively. The managing partner of Ciner Wyoming decided to reduce distributions during the year to fund a multi-year capacity expansion project that is expected to result in higher earnings and distributions. NRP expects to receive approximately $25 million to $28 million of annual cash distributions from Ciner Wyoming until the project is funded.

Corporate and Financing

Corporate and financing costs declined $8.4 million in the fourth quarter of 2019 compared to the prior year quarter primarily due to lower interest expense as a result of less debt outstanding. Cash paid for interest in the fourth quarter of 2019 increased $15.5 million as compared to the prior year quarter as a result of the timing of interest payments on the parent company bonds that were refinanced in the second quarter of 2019. NRP paid interest on the new 9.125% Notes in the fourth quarter of 2019, compared to interest payments made on the previous 10.5% Notes in the third quarter of 2018.

Corporate and financing costs increased $6.8 million in 2019 as compared to the prior year primarily driven by the refinancing of NRP's bonds and revolving credit facility in the second quarter of 2019 which reduced interest costs, extended maturities and significantly improved the partnership's liquidity and financial flexibility. The refinancings resulted in a $29.3 million loss on extinguishment of debt, which was partially offset by $22.7 million decreased interest expense, net of interest income.

Anadarko Litigation Update

In November 2019, the trial court ruled in NRP’s favor in the contingent purchase price consideration payment lawsuit brought against NRP by Anadarko. Anadarko did not appeal the trial court’s ruling. Accordingly, this case is now concluded with no liability incurred by NRP.

Conference Call

A conference call will be held today at 9:00 a.m. ET. To join the conference call, dial (844) 583-4546 and provide the conference ID 1465967. Investors may also listen to the call via the Investor Relations section of the NRP website at www.nrplp.com. To access the replay, please visit the Investor Relations section of NRP’s website.

Company Profile

Natural Resource Partners L.P., a master limited partnership headquartered in Houston, TX, is a diversified natural resource company that owns, manages and leases a diversified portfolio of mineral properties in the United States including interests in coal, industrial minerals and other natural resources. In addition, NRP owns an equity investment in Ciner Wyoming LLC, a trona ore mining and soda ash production business.

For additional information, please contact Tiffany Sammis at 713-751-7515 or tsammis@nrplp.com. Further information about NRP is available on the Partnership’s website at http://www.nrplp.com.

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, among other things, statements regarding: the Partnership's business strategy; its liquidity and access to capital and financing sources; its financial strategy; prices of and demand for coal, trona and soda ash, and other natural resources; estimated revenues, expenses and results of operations; projected production levels by the Partnership's lessees; Ciner Wyoming LLC’s trona mining and soda ash refinery operations; distributions from the soda ash joint venture; the impact of governmental policies, laws and regulations, as well as regulatory and legal proceedings involving the Partnership, and of scheduled or potential regulatory or legal changes; global and U.S. economic conditions; 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.

Non-GAAP Financial Measures

"Adjusted EBITDA" is a non-GAAP financial measure that we define as net income (loss) from continuing operations less equity earnings from unconsolidated investment, net income attributable to non-controlling interest and gain on reserve swap; plus total distributions from unconsolidated investment, interest expense, net, debt modification expense, loss on extinguishment of debt, depreciation, depletion and amortization and asset impairments. Adjusted EBITDA should not be considered an alternative to, or more meaningful than, net income or loss, net income or loss attributable to partners, operating income or loss, cash flows from operating activities or any other measure of financial performance presented in accordance with GAAP as measures of operating performance, liquidity or ability to service debt obligations. 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 affect our net income (loss), the lack of comparability of results of operations of different companies and the different methods of calculating Adjusted EBITDA reported by different companies. In addition, Adjusted EBITDA presented below is not calculated or presented on the same basis as Consolidated EBITDA as defined in our partnership agreement or Consolidated EBITDDA as defined in Opco's debt agreements. Adjusted EBITDA is a supplemental performance measure used by our management and by external users of our financial statements, such as investors, commercial banks, research analysts and others to assess the financial performance of our assets without regard to financing methods, capital structure or historical cost basis.

“Distributable cash flow” or "DCF" is a non-GAAP financial measure that we define as net cash provided by (used in) operating activities of continuing operations plus distributions from unconsolidated investment in excess of cumulative earnings, proceeds from asset sales and disposals, including sales of discontinued operations, and return of long-term contract receivable; less maintenance capital expenditures and distributions to non-controlling interest. DCF 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. DCF may not be calculated the same for us as for other companies. In addition, distributable cash flow is not calculated or presented on the same basis as distributable cash flow as defined in our partnership agreement, which is used as a metric to determine whether we are able to increase quarterly distributions to our common unitholders. Distributable cash flow is a supplemental liquidity measure used by our management and by external users of our financial statements, such as investors, commercial banks, research analysts and others to assess our ability to make cash distributions and repay debt.

“Free cash flow” or "FCF" is a non-GAAP financial measure that we define as net cash provided by (used in) operating activities of continuing operations plus distributions from unconsolidated investment in excess of cumulative earnings and return of long-term contract receivable; less maintenance and expansion capital expenditures, cash flow used in acquisition costs classified as financing activities and distributions to non-controlling interest. FCF is calculated before mandatory debt repayments. Free 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. Free cash flow may not be calculated the same for us as for other companies. Free cash flow is a supplemental liquidity measure used by our management and by external users of our financial statements, such as investors, commercial banks, research analysts and others to assess our ability to make cash distributions and repay debt.

"Cash flow cushion" is a non-GAAP financial measure that we define as free cash flow less one-time beneficial items, mandatory Opco debt repayments, preferred unit distributions and common unit distributions. Cash flow cushion 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. Cash flow cushion is a supplemental liquidity measure used by our management to assess the Partnership's ability to make or raise cash distributions to our common and preferred unitholders and our general partner and repay debt or redeem preferred units.

"Return on capital employed" or "ROCE" is a non-GAAP financial measure that we define as net income (loss) from continuing operations plus financing costs (interest expense plus loss on extinguishment of debt) divided by the sum of equity excluding equity of discontinued operations, and debt. Return on capital employed should not be considered an alternative to, or more meaningful than, net income or loss, net income or loss attributable to partners, operating income or loss, cash flows from operating activities or any other measure of financial performance presented in accordance with GAAP as measures of operating performance, liquidity or ability to service debt obligations. Return on capital employed is a supplemental performance measure used by our management team that measures our profitability and efficiency with which our capital is employed. The measure provides an indication of operating performance before the impact of leverage in the capital structure.

-Financial Tables and Reconciliation of Non-GAAP Measures Follow-

Natural Resource Partners L.P.

Financial Tables

(Unaudited)

 

Consolidated Statements of Comprehensive Income (Loss)

 

 

Three Months Ended

 

Year Ended

 

December 31,

 

September 30,

 

December 31,

(In thousands, except per unit data)

2019

 

2018

 

2019

 

2019

 

2018

Revenues and other income

 

 

 

 

 

 

 

 

 

Coal royalty and other

$

37,032

 

 

$

43,966

 

 

$

39,919

 

 

$

191,069

 

 

$

178,878

 

Transportation and processing services

4,539

 

 

6,649

 

 

3,865

 

 

19,279

 

 

23,887

 

Equity in earnings of Ciner Wyoming

10,256

 

 

13,320

 

 

13,818

 

 

47,089

 

 

48,306

 

Gain on litigation settlement

 

 

25,000

 

 

 

 

 

 

25,000

 

Gain (loss) on asset sales and disposals

(111

)

 

1,622

 

 

6,107

 

 

6,498

 

 

2,441

 

Total revenues and other income

$

51,716

 

 

$

90,557

 

 

$

63,709

 

 

$

263,935

 

 

$

278,512

 

Operating expenses

 

 

 

 

 

 

 

 

 

Operating and maintenance expenses

$

5,925

 

 

$

8,387

 

 

$

5,994

 

 

$

32,738

 

 

$

29,509

 

Depreciation, depletion and amortization

3,186

 

 

6,325

 

 

3,384

 

 

14,932

 

 

21,689

 

General and administrative expenses

3,931

 

 

5,714

 

 

4,253

 

 

16,730

 

 

16,496

 

Asset impairments

147,730

 

 

18,038

 

 

484

 

 

148,214

 

 

18,280

 

Total operating expenses

$

160,772

 

 

$

38,464

 

 

$

14,115

 

 

$

212,614

 

 

$

85,974

 

Income (loss) from operations

$

(109,056

)

 

$

52,093

 

 

$

49,594

 

 

$

51,321

 

 

$

192,538

 

Other expenses, net

 

 

 

 

 

 

 

 

 

Interest expense, net

$

(10,392

)

 

$

(17,001

)

 

$

(10,431

)

 

$

(47,453

)

 

$

(70,178

)

Loss on extinguishment of debt

 

 

 

 

 

 

(29,282

)

 

 

Total other expenses, net

$

(10,392

)

 

$

(17,001

)

 

$

(10,431

)

 

$

(76,735

)

 

$

(70,178

)

Net income (loss) from continuing operations

$

(119,448

)

 

$

35,092

 

 

$

39,163

 

 

$

(25,414

)

 

$

122,360

 

Income from discontinued operations

750

 

 

13,966

 

 

7

 

 

956

 

 

17,687

 

Net income (loss)

$

(118,698

)

 

$

49,058

 

 

$

39,170

 

 

$

(24,458

)

 

$

140,047

 

Net income attributable to non-controlling interest

 

 

 

 

 

 

 

 

(510

)

Net income (loss) attributable to NRP

$

(118,698

)

 

$

49,058

 

 

$

39,170

 

 

$

(24,458

)

 

$

139,537

 

Less: income attributable to preferred unitholders

(7,500

)

 

(7,500

)

 

(7,500

)

 

(30,000

)

 

(30,000

)

Net income (loss) attributable to common unitholders and general partner

$

(126,198

)

 

$

41,558

 

 

$

31,670

 

 

$

(54,458

)

 

$

109,537

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) attributable to common unitholders

$

(123,674

)

 

$

40,727

 

 

$

31,036

 

 

$

(53,369

)

 

$

107,346

 

Net income (loss) attributable to the general partner

(2,524

)

 

831

 

 

634

 

 

(1,089

)

 

2,191

 

Income (loss) from continuing operations per common unit

 

 

 

 

 

 

 

 

 

Basic

$

(10.15

)

 

$

2.21

 

 

$

2.53

 

 

$

(4.43

)

 

$

7.35

 

Diluted

(10.15

)

 

1.69

 

 

1.66

 

 

(4.43

)

 

5.90

 

Net income (loss) per common unit

 

 

 

 

 

 

 

 

 

Basic

$

(10.09

)

 

$

3.33

 

 

$

2.53

 

 

$

(4.35

)

 

$

8.77

 

Diluted

(10.09

)

 

2.36

 

 

1.66

 

 

(4.35

)

 

6.76

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

$

(118,698

)

 

$

49,058

 

 

$

39,170

 

 

$

(24,458

)

 

$

140,047

 

Comprehensive income (loss) from unconsolidated investment and other

1,208

 

 

619

 

 

(520

)

 

868

 

 

(149

)

Comprehensive income (loss)

$

(117,490

)

 

$

49,677

 

 

$

38,650

 

 

$

(23,590

)

 

$

139,898

 

Comprehensive income attributable to non-controlling interest

 

 

 

 

 

 

 

 

(510

)

Comprehensive income (loss) attributable to NRP

$

(117,490

)

 

$

49,677

 

 

$

38,650

 

 

$

(23,590

)

 

$

139,388

 

Natural Resource Partners L.P.

Financial Tables

(Unaudited)

 

Consolidated Statements of Cash Flows

 

 

 

 

 

Three Months Ended

 

Year Ended

 

December 31,

 

September 30,

 

December 31,

(In thousands)

2019

 

2018

 

2019

 

2019

 

2018

Cash flows from operating activities

 

 

 

 

 

 

 

 

 

Net income (loss)

$

(118,698

)

 

$

49,058

 

 

$

39,170

 

 

$

(24,458

)

 

$

140,047

 

Adjustments to reconcile net income (loss) to net cash provided by operating activities of continuing operations:

 

 

 

 

 

 

 

 

 

Depreciation, depletion and amortization

3,186

 

 

6,325

 

 

3,384

 

 

14,932

 

 

21,689

 

Distributions from unconsolidated investment

6,370

 

 

9,800

 

 

6,370

 

 

31,850

 

 

44,453

 

Equity earnings from unconsolidated investment

(10,256

)

 

(13,320

)

 

(13,818

)

 

(47,089

)

 

(48,306

)

Loss (gain) on asset sales and disposals

111

 

 

(1,622

)

 

(6,107

)

 

(6,498

)

 

(2,441

)

Loss on extinguishment of debt

 

 

 

 

 

 

29,282

 

 

 

Income from discontinued operations

(750

)

 

(13,966

)

 

(7

)

 

(956

)

 

(17,687

)

Asset impairments

147,730

 

 

18,038

 

 

484

 

 

148,214

 

 

18,280

 

Bad debt expense

620

 

 

(302

)

 

151

 

 

7,462

 

 

(62

)

Unit-based compensation expense

519

 

 

290

 

 

466

 

 

2,361

 

 

1,434

 

Amortization of debt issuance costs and other

464

 

 

3,112

 

 

1,072

 

 

3,687

 

 

7,133

 

Change in operating assets and liabilities:

 

 

 

 

 

 

 

 

 

Accounts receivable

(3,924

)

 

461

 

 

996

 

 

(6,035

)

 

(6,062

)

Accounts payable

(412

)

 

1,048

 

 

355

 

 

(1,234

)

 

1,138

 

Accrued liabilities

1,427

 

 

3,212

 

 

439

 

 

(3,656

)

 

19

 

Accrued interest

(12,048

)

 

8,806

 

 

7,163

 

 

(12,029

)

 

(1,138

)

Deferred revenue

3,188

 

 

10,265

 

 

(1,236

)

 

(732

)

 

19,465

 

Other items, net

1,867

 

 

(716

)

 

2,852

 

 

2,218

 

 

320

 

Net cash provided by operating activities of continuing operations

$

19,394

 

 

$

80,489

 

 

$

41,734

 

 

$

137,319

 

 

$

178,282

 

Net cash provided by (used in) operating activities of discontinued operations

(4

)

 

886

 

 

(359

)

 

(8

)

 

10,641

 

Net cash provided by operating activities

$

19,390

 

 

$

81,375

 

 

$

41,375

 

 

$

137,311

 

 

$

188,923

 

 

 

 

 

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

 

 

 

 

 

Distributions from unconsolidated investment in excess of cumulative earnings

$

 

 

$

 

 

$

 

 

$

 

 

$

2,097

 

Proceeds from asset sales and disposals

(111

)

 

1,623

 

 

6,108

 

 

6,500

 

 

2,449

 

Return of long-term contract receivable

392

 

 

455

 

 

459

 

 

1,743

 

 

3,061

 

Acquisition of mineral rights

(22

)

 

 

 

 

 

(22

)

 

 

Net cash provided by investing activities of continuing operations

$

259

 

 

$

2,078

 

 

$

6,567

 

 

$

8,221

 

 

$

7,607

 

Net cash provided by (used in) investing activities of discontinued operations

(73

)

 

192,364

 

 

(122

)

 

(629

)

 

183,021

 

Net cash provided by investing activities

$

186

 

 

$

194,442

 

 

$

6,445

 

 

$

7,592

 

 

$

190,628

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

 

 

 

 

Debt borrowings

 

 

 

 

 

 

300,000

 

 

35,000

 

Debt repayments

(20,335

)

 

(119,986

)

 

(8,277

)

 

(463,082

)

 

(175,706

)

Redemption of preferred units paid-in-kind

 

 

 

 

 

 

 

 

(8,844

)

Distributions to common unitholders and general partner

(5,630

)

 

(5,623

)

 

(5,630

)

 

(33,150

)

 

(22,486

)

Distributions to preferred unitholders

(7,500

)

 

(7,500

)

 

(7,500

)

 

(30,000

)

 

(30,265

)

Contributions from (to) discontinued operations

(77

)

 

197,965

 

 

(481

)

 

(637

)

 

195,690

 

Debt issuance costs and other

(9

)

 

 

 

(25

)

 

(26,436

)

 

(228

)

Net cash provided by (used in) financing activities of continuing operations

$

(33,551

)

 

$

64,856

 

 

$

(21,913

)

 

$

(253,305

)

 

$

(6,839

)

Net cash provided by (used in) financing activities of discontinued operations

77

 

 

(198,030

)

 

481

 

 

637

 

 

(196,509

)

Net cash used in financing activities

$

(33,474

)

 

$

(133,174

)

 

$

(21,432

)

 

$

(252,668

)

 

$

(203,348

)

 

 

 

 

 

 

 

 

 

 

Net increase (decrease) in cash, cash equivalents and restricted cash

$

(13,898

)

 

$

142,643

 

 

$

26,388

 

 

$

(107,765

)

 

$

176,203

 

 

 

 

 

 

 

 

 

 

 

Cash, cash equivalents and restricted cash of continuing operations at beginning of period

$

112,163

 

 

$

58,607

 

 

$

85,775

 

 

$

206,030

 

 

$

26,980

 

Cash and cash equivalents of discontinued operations at beginning of period

 

 

4,780

 

 

 

 

 

 

2,847

 

Cash, cash equivalents and restricted cash at beginning of period

$

112,163

 

 

$

63,387

 

 

$

85,775

 

 

$

206,030

 

 

$

29,827

 

 

 

 

 

 

 

 

 

 

 

Cash, cash equivalents and restricted cash at end of period

$

98,265

 

 

$

206,030

 

 

$

112,163

 

 

$

98,265

 

 

$

206,030

 

Less: cash and cash equivalents of discontinued operations at end of period

 

 

 

 

 

 

 

 

 

Cash, cash equivalents and restricted cash of continuing operations at end of period

$

98,265

 

 

$

206,030

 

 

$

112,163

 

 

$

98,265

 

 

$

206,030

 

 

 

 

 

 

 

 

 

 

 

Supplemental cash flow information:

 

 

 

 

 

 

 

 

 

Cash paid during the period for interest of continuing operations

$

22,327

 

 

$

6,838

 

 

$

3,225

 

 

$

58,597

 

 

$

64,991

 

Natural Resource Partners L.P.

Financial Tables

(Unaudited)

 

Consolidated Balance Sheets

 

 

December 31,

(In thousands, except unit data)

2019

 

2018

ASSETS

 

 

 

Current assets

 

 

 

Cash and cash equivalents

$

98,265

 

 

$

101,839

 

Restricted cash

 

 

104,191

 

Accounts receivable, net

30,869

 

 

32,058

 

Prepaid expenses and other, net

1,244

 

 

3,462

 

Current assets of discontinued operations

1,706

 

 

993

 

Total current assets

$

132,084

 

 

$

242,543

 

Land

24,008

 

 

24,008

 

Mineral rights, net

605,096

 

 

743,112

 

Intangible assets, net

17,687

 

 

42,513

 

Equity in unconsolidated investment

263,080

 

 

247,051

 

Long-term contract receivable

36,963

 

 

38,945

 

Other assets, net

6,989

 

 

3,475

 

Total assets

$

1,085,907

 

 

$

1,341,647

 

LIABILITIES AND CAPITAL

 

 

 

Current liabilities

 

 

 

Accounts payable

$

1,179

 

 

$

2,414

 

Accrued liabilities

8,764

 

 

12,347

 

Accrued interest

2,316

 

 

14,345

 

Current portion of deferred revenue

4,608

 

 

3,509

 

Current portion of long-term debt, net

45,776

 

 

115,184

 

Current liabilities of discontinued operations

65

 

 

947

 

Total current liabilities

$

62,708

 

 

$

148,746

 

Deferred revenue

47,213

 

 

49,044

 

Long-term debt, net

470,422

 

 

557,574

 

Other non-current liabilities

4,949

 

 

1,150

 

Total liabilities

$

585,292

 

 

$

756,514

 

Commitments and contingencies

 

 

 

Class A Convertible Preferred Units (250,000 units issued and outstanding at $1,000 par value per unit; liquidation preference of $1,500 per unit)

$

164,587

 

 

$

164,587

 

Partners’ capital:

 

 

 

Common unitholders’ interest (12,261,199 and 12,249,469 units issued and outstanding at December 31, 2019 and 2018, respectively)

$

271,471

 

 

$

355,113

 

General partner’s interest

3,270

 

 

5,014

 

Warrant holders' interest

66,816

 

 

66,816

 

Accumulated other comprehensive loss

(2,594

)

 

(3,462

)

Total partners’ capital

$

338,963

 

 

$

423,481

 

Non-controlling interest

(2,935

)

 

(2,935

)

Total capital

$

336,028

 

 

$

420,546

 

Total liabilities and capital

$

1,085,907

 

 

$

1,341,647

 

Natural Resource Partners L.P.

Financial Tables

(Unaudited)

 

Consolidated Statements of Partners' Capital

 

 

Common Unitholders

 

General
Partner

 

Warrant
Holders

 

Accumulated
Other
Comprehensive
Loss

 

Partners'
Capital
Excluding
Non-
Controlling
Interest

 

Non-
Controlling
Interest

 

Total
Capital

 

(In thousands)

Units

 

Amounts

 

Balance at December 31, 2017

12,232

 

 

$

199,851

 

 

$

1,857

 

 

$

66,816

 

 

$

(3,313

)

 

$

265,211

 

 

$

(3,394

)

 

$

261,817

 

Cumulative effect of adoption of accounting standard

 

 

69,057

 

 

1,409

 

 

 

 

 

 

70,466

 

 

 

 

70,466

 

Net income (1)

 

 

136,746

 

 

2,791

 

 

 

 

 

 

139,537

 

 

510

 

 

140,047

 

Distributions to common unitholders and general partner

 

 

(22,036

)

 

(450

)

 

 

 

 

 

(22,486

)

 

 

 

(22,486

)

Distributions to preferred unitholders

 

 

(29,660

)

 

(605

)

 

 

 

 

 

(30,265

)

 

 

 

(30,265

)

Issuance of unit-based awards

17

 

 

546

 

 

 

 

 

 

 

 

546

 

 

 

 

546

 

Unit-based awards amortization and vesting

 

 

560

 

 

 

 

 

 

 

 

560

 

 

 

 

560

 

Comprehensive income (loss) from unconsolidated investment and other

 

 

49

 

 

12

 

 

 

 

(149

)

 

(88

)

 

(51

)

 

(139

)

Balance at December 31, 2018

12,249

 

 

$

355,113

 

 

$

5,014

 

 

$

66,816

 

 

$

(3,462

)

 

$

423,481

 

 

$

(2,935

)

 

$

420,546

 

Net loss (1)

 

 

(23,969

)

 

(489

)

 

 

 

 

 

(24,458

)

 

 

 

(24,458

)

Distributions to common unitholders and general partner

 

 

(32,487

)

 

(663

)

 

 

 

 

 

(33,150

)

 

 

 

(33,150

)

Distributions to preferred unitholders

 

 

(29,400

)

 

(600

)

 

 

 

 

 

(30,000

)

 

 

 

(30,000

)

Issuance of unit-based awards

12

 

 

486

 

 

 

 

 

 

 

 

486

 

 

 

 

486

 

Unit-based awards amortization and vesting

 

 

1,804

 

 

 

 

 

 

 

 

1,804

 

 

 

 

1,804

 

Comprehensive income (loss) from unconsolidated investment and other

 

 

(76

)

 

8

 

 

 

 

868

 

 

800

 

 

 

 

800

 

Balance at December 31, 2019

12,261

 

 

$

271,471

 

 

$

3,270

 

 

$

66,816

 

 

$

(2,594

)

 

$

338,963

 

 

$

(2,935

)

 

$

336,028

 

________________________

(1)

Net income (loss) includes $30.0 million attributable to preferred unitholders that accumulated during the period, of which $29.4 million is allocated to the common unitholders and $0.6 million is allocated to the general partner.

Natural Resource Partners L.P.

Financial Tables

(Unaudited)

The following tables present NRP's unaudited business results by segment for the three months ended December 31, 2019 and 2018 and September 30, 2019:

 

 

Operating Business Segments

 

 

 

 

 

 

Coal Royalty
and Other

 

 

 

Corporate and
Financing

 

 

(In thousands)

 

 

Soda Ash

 

 

Total

Three Months Ended December 31, 2019

 

 

 

 

 

 

 

 

Revenues

 

$

41,571

 

 

$

10,256

 

 

$

 

 

$

51,827

 

Loss on asset sales and disposals

 

(111

)

 

 

 

 

 

(111

)

Total revenues and other income

 

$

41,460

 

 

$

10,256

 

 

$

 

 

$

51,716

 

Asset impairments

 

$

147,730

 

 

$

 

 

$

 

 

$

147,730

 

Net income (loss) from continuing operations

 

$

(115,355

)

 

$

10,230

 

 

$

(14,323

)

 

$

(119,448

)

Adjusted EBITDA (1)

 

$

35,561

 

 

$

6,344

 

 

$

(3,931

)

 

$

37,974

 

Cash flow provided by (used in) continuing operations:

 

 

 

 

 

 

 

 

Operating activities

 

$

39,042

 

 

$

6,344

 

 

$

(25,992

)

 

$

19,394

 

Investing activities

 

$

259

 

 

$

 

 

$

 

 

$

259

 

Financing activities

 

$

 

 

$

 

 

$

(33,551

)

 

$

(33,551

)

Distributable cash flow (1) (2)

 

$

39,323

 

 

$

6,344

 

 

$

(25,992

)

 

$

19,602

 

Free cash flow (1)

 

$

39,412

 

 

$

6,344

 

 

$

(25,992

)

 

$

19,764

 

 

 

 

 

 

 

 

 

 

Three Months Ended December 31, 2018

 

 

 

 

 

 

 

 

Revenues

 

$

50,615

 

 

$

13,320

 

 

$

 

 

$

63,935

 

Gain on litigation settlement

 

25,000

 

 

 

 

 

 

25,000

 

Gain on asset sales and disposals

 

1,622

 

 

 

 

 

 

1,622

 

Total revenues and other income

 

$

77,237

 

 

$

13,320

 

 

$

 

 

$

90,557

 

Asset impairments

 

$

18,038

 

 

$

 

 

$

 

 

$

18,038

 

Net income (loss) from continuing operations

 

$

44,487

 

 

$

13,320

 

 

$

(22,715

)

 

$

35,092

 

Adjusted EBITDA (1)

 

$

68,850

 

 

$

9,800

 

 

$

(5,714

)

 

$

72,936

 

Cash flow provided by (used in) continuing operations:

 

 

 

 

 

 

 

 

Operating activities

 

$

80,272

 

 

$

9,800

 

 

$

(9,583

)

 

$

80,489

 

Investing activities

 

$

2,078

 

 

$

 

 

$

 

 

$

2,078

 

Financing activities

 

$

 

 

$

 

 

$

64,856

 

 

$

64,856

 

Distributable cash flow (1) (2)

 

$

82,350

 

 

$

9,800

 

 

$

(9,583

)

 

$

280,658

 

Free cash flow (1)

 

$

80,727

 

 

$

9,800

 

 

$

(9,583

)

 

$

80,944

 

 

 

 

 

 

 

 

 

 

Three Months Ended September 30, 2019

 

 

 

 

 

 

 

 

Revenues

 

$

43,784

 

 

$

13,818

 

 

$

 

 

$

57,602

 

Gain on asset sales and disposals

 

6,107

 

 

 

 

 

 

6,107

 

Total revenues and other income

 

$

49,891

 

 

$

13,818

 

 

$

 

 

$

63,709

 

Asset impairments

 

$

484

 

 

$

 

 

$

 

 

$

484

 

Net income (loss) from continuing operations

 

$

40,252

 

 

$

13,595

 

 

$

(14,684

)

 

$

39,163

 

Adjusted EBITDA (1)

 

$

44,120

 

 

$

6,147

 

 

$

(4,253

)

 

$

46,014

 

Cash flow provided by (used in) continuing operations:

 

 

 

 

 

 

 

 

Operating activities

 

$

41,094

 

 

$

6,147

 

 

$

(5,507

)

 

$

41,734

 

Investing activities

 

$

6,567

 

 

$

 

 

$

 

 

$

6,567

 

Financing activities

 

$

 

 

$

 

 

$

(21,913

)

 

$

(21,913

)

Distributable cash flow (1) (2)

 

$

47,661

 

 

$

6,147

 

 

$

(5,507

)

 

$

48,179

 

Free cash flow (1)

 

$

41,553

 

 

$

6,147

 

 

$

(5,507

)

 

$

42,193

 

________________________

(1)

See "Non-GAAP Financial Measures" and reconciliation tables at the end of this release.

(2)

Includes net proceeds from the sale of the construction aggregates business which are classified as investing cash flow from discontinued operations.

Natural Resource Partners L.P.

Financial Tables

(Unaudited)

The following tables present NRP's unaudited business results by segment for the year ended December 31, 2019 and 2018:

 

 

Operating Business Segments

 

 

 

 

 

 

Coal Royalty
and Other

 

 

 

Corporate and
Financing

 

 

(In thousands)

 

 

Soda Ash

 

 

Total

Year Ended December 31, 2019

 

 

 

 

 

 

 

 

Revenues

 

$

210,348

 

 

$

47,089

 

 

$

 

 

$

257,437

 

Gain on asset sales and disposals

 

6,498

 

 

 

 

 

 

6,498

 

Total revenues and other income

 

$

216,846

 

 

$

47,089

 

 

$

 

 

$

263,935

 

Asset impairments

 

$

148,214

 

 

$

 

 

$

 

 

$

148,214

 

Net income (loss) from continuing operations

 

$

21,211

 

 

$

46,840

 

 

$

(93,465

)

 

$

(25,414

)

Adjusted EBITDA (1)

 

$

184,357

 

 

$

31,601

 

 

$

(16,730

)

 

$

199,228

 

Cash flow provided by (used in) continuing operations:

 

 

 

 

 

 

 

 

Operating activities

 

$

178,863

 

 

$

31,601

 

 

$

(73,145

)

 

$

137,319

 

Investing activities

 

$

8,221

 

 

$

 

 

$

 

 

$

8,221

 

Financing activities

 

$

 

 

$

 

 

$

(253,305

)

 

$

(253,305

)

Distributable cash flow (1) (2)

 

$

187,106

 

 

$

31,601

 

 

$

(73,145

)

 

$

144,933

 

Free cash flow (1)

 

$

180,584

 

 

$

31,601

 

 

$

(73,145

)

 

$

139,040

 

 

 

 

 

 

 

 

 

 

Year Ended December 31, 2018

 

 

 

 

 

 

 

 

Revenues

 

$

202,765

 

 

$

48,306

 

 

$

 

 

$

251,071

 

Gain on litigation settlement

 

25,000

 

 

 

 

 

 

25,000

 

Gain on asset sales and disposals

 

2,441

 

 

 

 

 

 

2,441

 

Total revenues and other income

 

$

230,206

 

 

$

48,306

 

 

$

 

 

$

278,512

 

Asset impairments

 

$

18,280

 

 

$

 

 

$

 

 

$

18,280

 

Net income (loss) from continuing operations

 

$

160,728

 

 

$

48,306

 

 

$

(86,674

)

 

$

122,360

 

Adjusted EBITDA (1)

 

$

200,187

 

 

$

46,550

 

 

$

(16,496

)

 

$

230,241

 

Cash flow provided by (used in) continuing operations:

 

 

 

 

 

 

 

 

Operating activities

 

$

212,394

 

 

$

44,453

 

 

$

(78,565

)

 

$

178,282

 

Investing activities

 

$

5,510

 

 

$

2,097

 

 

$

 

 

$

7,607

 

Financing activities

 

$

 

 

$

 

 

$

(6,839

)

 

$

(6,839

)

Distributable cash flow (1) (2)

 

$

217,904

 

 

$

46,550

 

 

$

(78,565

)

 

$

383,980

 

Free cash flow (1)

 

$

215,455

 

 

$

46,550

 

 

$

(78,565

)

 

$

183,440

 

________________________

(1)

See "Non-GAAP Financial Measures" and reconciliation tables at the end of this release.

(2)

Includes net proceeds from the sale of the construction aggregates business which are classified as investing cash flow from discontinued operations.

Natural Resource Partners L.P.

Financial Tables

(Unaudited)

 

Operating Statistics - Coal Royalty and Other

 

 

 

Three Months Ended

 

Year Ended

 

 

December 31,

 

September 30,

 

December 31,

(In thousands, except per ton data)

 

2019

 

2018

 

2019

 

2019

 

2018

Coal sales volumes (tons)

 

 

 

 

 

 

 

 

 

 

Appalachia

 

 

 

 

 

 

 

 

 

 

Northern (1)

 

686

 

 

1,697

 

 

290

 

 

3,460

 

 

3,187

 

Central

 

2,908

 

 

3,415

 

 

3,222

 

 

13,377

 

 

14,997

 

Southern

 

498

 

 

422

 

 

438

 

 

1,670

 

 

1,710

 

Total Appalachia

 

4,092

 

 

5,534

 

 

3,950

 

 

18,507

 

 

19,894

 

Illinois Basin

 

555

 

 

648

 

 

551

 

 

2,201

 

 

2,739

 

Northern Powder River Basin

 

1,057

 

 

1,417

 

 

532

 

 

3,036

 

 

4,313

 

Total coal sales volumes

 

5,704

 

 

7,599

 

 

5,033

 

 

23,744

 

 

26,946

 

Coal royalty revenue per ton

 

 

 

 

 

 

 

 

 

 

Appalachia

 

 

 

 

 

 

 

 

 

 

Northern (1)

 

$

0.88

 

 

$

1.78

 

 

$

2.54

 

 

$

1.96

 

 

$

2.74

 

Central

 

4.58

 

 

5.79

 

 

5.25

 

 

5.53

 

 

5.62

 

Southern

 

5.96

 

 

7.89

 

 

5.99

 

 

6.69

 

 

7.20

 

Illinois Basin

 

4.53

 

 

4.84

 

 

4.82

 

 

4.66

 

 

4.63

 

Northern Powder River Basin

 

2.33

 

 

2.56

 

 

4.69

 

 

2.90

 

 

2.65

 

Combined average coal royalty revenue per ton

 

3.84

 

 

4.33

 

 

5.05

 

 

4.67

 

 

4.80

 

Coal royalty revenues

 

 

 

 

 

 

 

 

 

 

Appalachia

 

 

 

 

 

 

 

 

 

 

Northern (1)

 

$

602

 

 

$

3,021

 

 

$

735

 

 

$

6,775

 

 

$

8,719

 

Central

 

13,332

 

 

19,764

 

 

16,929

 

 

73,960

 

 

84,302

 

Southern

 

2,965

 

 

3,327

 

 

2,626

 

 

11,169

 

 

12,312

 

Total Appalachia

 

16,899

 

 

26,112

 

 

20,290

 

 

91,904

 

 

105,333

 

Illinois Basin

 

2,516

 

 

3,140

 

 

2,658

 

 

10,255

 

 

12,673

 

Northern Powder River Basin

 

2,462

 

 

3,628

 

 

2,492

 

 

8,809

 

 

11,445

 

Unadjusted coal royalty revenues

 

21,877

 

 

32,880

 

 

25,440

 

 

110,968

 

 

129,451

 

Coal royalty adjustment for minimum leases

 

174

 

 

(12

)

 

(713

)

 

(1,356

)

 

(110

)

Total coal royalty revenues

 

$

22,051

 

 

$

32,868

 

 

$

24,727

 

 

$

109,612

 

 

$

129,341

 

Other revenues

 

 

 

 

 

 

 

 

 

 

Production lease minimum revenues

 

$

2,737

 

 

$

1,897

 

 

$

2,752

 

 

$

24,068

 

 

$

8,207

 

Minimum lease straight-line revenues

 

3,758

 

 

623

 

 

3,982

 

 

14,910

 

 

2,362

 

Property tax revenues

 

1,871

 

 

1,454

 

 

1,606

 

 

6,287

 

 

5,422

 

Wheelage revenues

 

845

 

 

1,329

 

 

1,675

 

 

5,880

 

 

6,484

 

Coal overriding royalty revenues

 

3,333

 

 

3,386

 

 

2,189

 

 

13,496

 

 

13,878

 

Lease amendment revenues

 

1,271

 

 

 

 

1,535

 

 

7,991

 

 

 

Aggregates royalty revenues

 

610

 

 

1,188

 

 

954

 

 

4,265

 

 

4,739

 

Oil and gas royalty revenues

 

456

 

 

929

 

 

374

 

 

3,031

 

 

6,608

 

Other revenues

 

100

 

 

292

 

 

125

 

 

1,529

 

 

1,837

 

Total other revenues

 

$

14,981

 

 

$

11,098

 

 

$

15,192

 

 

$

81,457

 

 

$

49,537

 

Coal royalty and other

 

$

37,032

 

 

$

43,966

 

 

$

39,919

 

 

$

191,069

 

 

$

178,878

 

Transportation and processing services revenues

 

4,539

 

 

6,649

 

 

3,865

 

 

19,279

 

 

23,887

 

Gain on litigation settlement

 

 

 

25,000

 

 

 

 

 

 

25,000

 

Gain (loss) on asset sales and disposals

 

(111

)

 

1,622

 

 

6,107

 

 

6,498

 

 

2,441

 

Total Coal Royalty and Other segment revenues and other income

 

$

41,460

 

 

$

77,237

 

 

$

49,891

 

 

$

216,846

 

 

$

230,206

 

________________________

(1)

Northern Appalachia includes NRP's Hibbs Run property that has significant sales volumes, but a low fixed rate per ton.

Natural Resource Partners L.P.

Reconciliation of Non-GAAP Measures

(Unaudited)

 

Adjusted EBITDA

 

 

 

 

 

Coal Royalty
and Other

 

 

 

Corporate and
Financing

 

 

(In thousands)

 

 

Soda Ash

 

 

Total

Three Months Ended December 31, 2019

 

 

 

 

 

 

 

 

Net income (loss) from continuing operations

 

$

(115,355

)

 

$

10,230

 

 

$

(14,323

)

 

$

(119,448

)

Less: equity earnings from unconsolidated investment

 

 

 

(10,256

)

 

 

 

(10,256

)

Add: total distributions from unconsolidated investment

 

 

 

6,370

 

 

 

 

6,370

 

Add: interest expense, net

 

 

 

 

 

10,392

 

 

10,392

 

Add: depreciation, depletion and amortization

 

3,186

 

 

 

 

 

 

3,186

 

Add: asset impairments

 

147,730

 

 

 

 

 

 

147,730

 

Adjusted EBITDA

 

$

35,561

 

 

$

6,344

 

 

$

(3,931

)

 

$

37,974

 

 

 

 

 

 

 

 

 

 

Three Months Ended December 31, 2018

 

 

 

 

 

 

 

 

Net income (loss) from continuing operations

 

$

44,487

 

 

$

13,320

 

 

$

(22,715

)

 

$

35,092

 

Less: equity earnings from unconsolidated investment

 

 

 

(13,320

)

 

 

 

(13,320

)

Add: total distributions from unconsolidated investment

 

 

 

9,800

 

 

 

 

9,800

 

Add: interest expense, net

 

 

 

 

 

17,001

 

 

17,001

 

Add: depreciation, depletion and amortization

 

6,325

 

 

 

 

 

 

6,325

 

Add: asset impairments

 

18,038

 

 

 

 

 

 

18,038

 

Adjusted EBITDA

 

$

68,850

 

 

$

9,800

 

 

$

(5,714

)

 

$

72,936

 

 

 

 

 

 

 

 

 

 

Three Months Ended September 30, 2019

 

 

 

 

 

 

 

 

Net income (loss) from continuing operations

 

$

40,252

 

 

$

13,595

 

 

$

(14,684

)

 

$

39,163

 

Less: equity earnings from unconsolidated investment

 

 

 

(13,818

)

 

 

 

(13,818

)

Add: total distributions from unconsolidated investment

 

 

 

6,370

 

 

 

 

6,370

 

Add: interest expense, net

 

 

 

 

 

10,431

 

 

10,431

 

Add: depreciation, depletion and amortization

 

3,384

 

 

 

 

 

 

3,384

 

Add: asset impairments

 

484

 

 

 

 

 

 

484

 

Adjusted EBITDA

 

$

44,120

 

 

$

6,147

 

 

$

(4,253

)

 

$

46,014

 

Natural Resource Partners L.P.

Reconciliation of Non-GAAP Measures

(Unaudited)

 

Adjusted EBITDA

 

 

 

Coal Royalty
and Other

 

 

 

Corporate and
Financing

 

 

(In thousands)

 

 

Soda Ash

 

 

Total

Year Ended December 31, 2019

 

 

 

 

 

 

 

 

Net income (loss) from continuing operations

 

$

21,211

 

 

$

46,840

 

 

$

(93,465

)

 

$

(25,414

)

Less: equity earnings from unconsolidated investment

 

 

 

(47,089

)

 

 

 

(47,089

)

Less: net income attributable to non-controlling interest

 

 

 

 

 

 

 

 

Add: total distributions from unconsolidated investment

 

 

 

31,850

 

 

 

 

31,850

 

Add: interest expense, net

 

 

 

 

 

47,453

 

 

47,453

 

Add: loss on extinguishment of debt

 

 

 

 

 

29,282

 

 

29,282

 

Add: depreciation, depletion and amortization

 

14,932

 

 

 

 

 

 

14,932

 

Add: asset impairments

 

148,214

 

 

 

 

 

 

148,214

 

Adjusted EBITDA

 

$

184,357

 

 

$

31,601

 

 

$

(16,730

)

 

$

199,228

 

 

 

 

 

 

 

 

 

 

Year Ended December 31, 2018

 

 

 

 

 

 

 

 

Net income (loss) from continuing operations

 

$

160,728

 

 

$

48,306

 

 

$

(86,674

)

 

$

122,360

 

Less: equity earnings from unconsolidated investment

 

 

 

(48,306

)

 

 

 

(48,306

)

Less: net income attributable to non-controlling interest

 

(510

)

 

 

 

 

 

(510

)

Add: total distributions from unconsolidated investment

 

 

 

46,550

 

 

 

 

46,550

 

Add: interest expense, net

 

 

 

 

 

70,178

 

 

70,178

 

Add: loss on extinguishment of debt

 

 

 

 

 

 

 

 

Add: depreciation, depletion and amortization

 

21,689

 

 

 

 

 

 

21,689

 

Add: asset impairments

 

18,280

 

 

 

 

 

 

18,280

 

Adjusted EBITDA

 

$

200,187

 

 

$

46,550

 

 

$

(16,496

)

 

$

230,241

 

Natural Resource Partners L.P.

Reconciliation of Non-GAAP Measures

(Unaudited)

 

Distributable Cash Flow and Free Cash Flow

 

 

 

Coal Royalty
and Other

 

 

 

Corporate and
Financing

 

 

(In thousands)

 

 

Soda Ash

 

 

Total

Three Months Ended December 31, 2019

 

 

 

 

 

 

 

 

Net cash provided by (used in) operating activities of continuing operations

 

$

39,042

 

 

$

6,344

 

 

$

(25,992

)

 

19,394

 

Add: proceeds from asset sales and disposals

 

(111

)

 

 

 

 

 

(111

)

Add: proceeds from sale of discontinued operations

 

 

 

 

 

 

 

(73

)

Add: return of long-term contract receivable

 

392

 

 

 

 

 

 

392

 

Distributable cash flow

 

$

39,323

 

 

$

6,344

 

 

$

(25,992

)

 

$

19,602

 

Less: proceeds from asset sales and disposals

 

111

 

 

 

 

 

 

111

 

Less: proceeds from sale of discontinued operations

 

 

 

 

 

 

 

73

 

Less: expansion capital expenditures

 

(22

)

 

 

 

 

 

(22

)

Free cash flow

 

$

39,412

 

 

$

6,344

 

 

$

(25,992

)

 

$

19,764

 

 

 

 

 

 

 

 

 

 

Three Months Ended December 31, 2018

 

 

 

 

 

 

 

 

Net cash provided by (used in) operating activities of continuing operations

 

$

80,272

 

 

$

9,800

 

 

$

(9,583

)

 

$

80,489

 

Add: proceeds from asset sales and disposals

 

1,623

 

 

 

 

 

 

1,623

 

Add: proceeds from sale of discontinued operations

 

 

 

 

 

 

 

198,091

 

Add: return of long-term contract receivable

 

455

 

 

 

 

 

 

455

 

Distributable cash flow

 

$

82,350

 

 

$

9,800

 

 

$

(9,583

)

 

$

280,658

 

Less: proceeds from asset sales and disposals

 

(1,623

)

 

 

 

 

 

(1,623

)

Less: proceeds from sale of discontinued operations

 

 

 

 

 

 

 

(198,091

)

Less: expansion capital expenditures

 

 

 

 

 

 

 

 

Free cash flow

 

$

80,727

 

 

$

9,800

 

 

$

(9,583

)

 

$

80,944

 

 

 

 

 

 

 

 

 

 

Three Months Ended September 30, 2019

 

 

 

 

 

 

 

 

Net cash provided by (used in) operating activities of continuing operations

 

$

41,094

 

 

$

6,147

 

 

$

(5,507

)

 

$

41,734

 

Add: proceeds from asset sales and disposals

 

6,108

 

 

 

 

 

 

6,108

 

Add: proceeds from sale of discontinued operations

 

 

 

 

 

 

 

(122

)

Add: return of long-term contract receivable

 

459

 

 

 

 

 

 

459

 

Distributable cash flow

 

$

47,661

 

 

$

6,147

 

 

$

(5,507

)

 

$

48,179

 

Less: proceeds from asset sales and disposals

 

(6,108

)

 

 

 

 

 

(6,108

)

Less: proceeds from sale of discontinued operations

 

 

 

 

 

 

 

122

 

Less: expansion capital expenditures

 

 

 

 

 

 

 

 

Free cash flow

 

$

41,553

 

 

$

6,147

 

 

$

(5,507

)

 

$

42,193

 

Natural Resource Partners L.P.

Reconciliation of Non-GAAP Measures

(Unaudited)

 

Distributable Cash Flow and Free Cash Flow

 

 

 

 

 

Coal Royalty
and Other

 

 

 

Corporate and
Financing

 

 

(In thousands)

 

 

Soda Ash

 

 

Total

Year Ended December 31, 2019

 

 

 

 

 

 

 

 

Net cash provided by (used in) operating activities of continuing operations

 

$

178,863

 

 

$

31,601

 

 

$

(73,145

)

 

$

137,319

 

Add: distributions from unconsolidated investment in excess of cumulative earnings

 

 

 

 

 

 

 

 

Add: proceeds from asset sales and disposals

 

6,500

 

 

 

 

 

 

6,500

 

Add: proceeds from sale of discontinued operations

 

 

 

 

 

 

 

(629

)

Add: return of long-term contract receivable

 

1,743

 

 

 

 

 

 

1,743

 

Distributable cash flow

 

$

187,106

 

 

$

31,601

 

 

$

(73,145

)

 

$

144,933

 

Less: proceeds from asset sales and disposals

 

(6,500

)

 

 

 

 

 

(6,500

)

Less: proceeds from sale of discontinued operations

 

 

 

 

 

 

 

629

 

Less: expansion capital expenditures

 

(22

)

 

 

 

 

 

(22

)

Free cash flow

 

$

180,584

 

 

$

31,601

 

 

$

(73,145

)

 

$

139,040

 

 

 

 

 

 

 

 

 

 

Year Ended December 31, 2018

 

 

 

 

 

 

 

 

Net cash provided by (used in) operating activities of continuing operations

 

$

212,394

 

 

$

44,453

 

 

$

(78,565

)

 

$

178,282

 

Add: distributions from unconsolidated investment in excess of cumulative earnings

 

 

 

2,097

 

 

 

 

2,097

 

Add: proceeds from asset sales and disposals

 

2,449

 

 

 

 

 

 

2,449

 

Add: proceeds from sale of discontinued operations

 

 

 

 

 

 

 

198,091

 

Add: return of long-term contract receivable

 

3,061

 

 

 

 

 

 

3,061

 

Distributable cash flow

 

$

217,904

 

 

$

46,550

 

 

$

(78,565

)

 

$

383,980

 

Less: proceeds from asset sales and disposals

 

(2,449

)

 

 

 

 

 

(2,449

)

Less: proceeds from sale of discontinued operations

 

 

 

 

 

 

 

(198,091

)

Less: expansion capital expenditures

 

 

 

 

 

 

 

 

Free cash flow

 

$

215,455

 

 

$

46,550

 

 

$

(78,565

)

 

$

183,440

 

Free Cash Flow Excluding Discontinued Operations and One-Time Beneficial Items and Cash Flow Cushion

 

 

 

 

 

 

 

Year Ended December 31,

(In thousands)

 

2019

 

2018

Free cash flow

 

$

139,040

 

 

$

183,440

 

Less: free cash flow used by discontinued operations

 

(8

)

 

(540

)

Free cash flow including discontinued operations

 

$

139,032

 

 

$

182,900

 

Add: free cash flow used by discontinued operations

 

8

 

 

540

 

Less: cash flow from one-time Hillsboro litigation settlement

 

 

 

(25,000

)

Free cash flow excluding discontinued operations

 

$

139,040

 

 

$

158,440

 

Less: mandatory Opco debt repayments

 

(68,128

)

 

(80,765

)

Less: preferred unit distributions and redemption of PIK units

 

(30,000

)

 

(39,109

)

Less: common unit distributions

 

(33,150

)

 

(22,486

)

Cash flow cushion

 

$

7,762

 

 

$

16,080

 

Natural Resource Partners L.P.

Reconciliation of Non-GAAP Measures

(Unaudited)

 

Leverage Ratio

 

 

 

 

(In thousands)

 

Year Ended December 31, 2019

Adjusted EBITDA

 

$

199,228

 

Debt—at December 31, 2019

 

$

524,056

 

Leverage Ratio (1)

 

2.6

x

________________________

(1)

Leverage Ratio is calculated as the outstanding principal of NRP's debt as of December 31, 2019 divided by the last twelve months' Adjusted EBITDA.

Return on Capital Employed ("ROCE")

 

 

 

Coal Royalty
and Other

 

 

 

Corporate and
Financing

 

 

(In thousands)

 

 

Soda Ash

 

 

Total

LTM Ended December 31, 2019

 

 

 

 

 

 

 

 

Net income (loss) from continuing operations

 

$

21,211

 

 

$

46,840

 

 

$

(93,465

)

 

$

(25,414

)

Financing costs

 

 

 

 

 

79,361

 

 

79,361

 

Return

 

$

21,211

 

 

$

46,840

 

 

$

(14,104

)

 

$

53,947

 

 

 

 

 

 

 

 

 

 

As of December 31, 2018

 

 

 

 

 

 

 

 

Total assets of continuing operations

 

$

986,680

 

 

$

247,051

 

 

$

106,923

 

 

$

1,340,654

 

Less: total current liabilities of continuing operations excluding current debt

 

(12,604

)

 

 

 

(20,011

)

 

(32,615

)

Less: total long-term liabilities of continuing operations excluding long-term debt

 

(50,119

)

 

 

 

(75

)

 

(50,194

)

Capital employed excluding discontinued operations

 

$

923,957

 

 

$

247,051

 

 

$

86,837

 

 

$

1,257,845

 

 

 

 

 

 

 

 

 

 

Total partners' capital (1)

 

$

926,892

 

 

$

247,051

 

 

$

(750,508

)

 

$

423,481

 

Less: non-controlling interest

 

(2,935

)

 

 

 

 

 

(2,935

)

Less: partners' capital from discontinued operations

 

 

 

 

 

 

 

(46

)

Total partners' capital excluding discontinued operations

 

$

923,957

 

 

$

247,051

 

 

$

(750,508

)

 

$

420,500

 

Class A convertible preferred units

 

 

 

 

 

164,587

 

 

164,587

 

Debt

 

 

 

 

 

672,758

 

 

672,758

 

Capital employed excluding discontinued operations

 

$

923,957

 

 

$

247,051

 

 

$

86,837

 

 

$

1,257,845

 

 

 

 

 

 

 

 

 

 

ROCE excluding discontinued operations

 

2.3%

 

19.0%

 

N/A

 

4.3%

 

 

 

 

 

 

 

 

 

Excluding asset impairments:

 

 

 

 

 

 

 

 

Return

 

$

21,211

 

 

$

46,840

 

 

$

(14,104

)

 

$

53,947

 

Add: asset impairments

 

148,214

 

 

 

 

 

 

148,214

 

Return excluding asset impairments

 

$

169,425

 

 

$

46,840

 

 

$

(14,104

)

 

$

202,161

 

 

 

 

 

 

 

 

 

 

ROCE excluding discontinued operations and asset impairments

 

18.3%

 

19.0%

 

N/A

 

16.1%

________________________

(1)

Total Partners' Capital includes $0.05 million from discontinued operations.

Natural Resource Partners L.P.

Reconciliation of Non-GAAP Measures

(Unaudited)

 

Change in Common Unitholders' Equity Excluding Asset Impairments Attributable to Common Unitholders

(In thousands)

 

 

 

2019 Common unitholders' equity

 

$

271,471

 

2018 Common unitholders' equity

 

355,113

 

2019 Change in common unitholders' equity

 

$

(83,642

)

 

 

 

2019 Asset impairments

 

$

148,214

 

2019 Asset impairments attributable to common unitholders

 

$

145,250

 

 

 

 

2019 Change in common unitholders' equity excluding asset impairments attributable to common unitholders

 

$

61,608

 

 

Contacts

Tiffany Sammis, 713-751-7515
tsammis@nrplp.com

Contacts

Tiffany Sammis, 713-751-7515
tsammis@nrplp.com