Alpha Announces First Quarter 2025 Financial Results

About this update from Alpha Metallurgical Resources, Inc.

BRISTOL, Tenn. , May 9, 2025 /PRNewswire/ -- Alpha Metallurgical Resources, Inc. (NYSE: AMR), a leading U.S. supplier of metallurgical products for the steel industry, today reported financial results for the first quarter ending March 31, 2025 . "Alpha's first quarter results reflect the challenging market environment we continue to experience, as well as significant impacts we previously disclosed related to severe weather conditions in January and February," said Andy Eidson , Alpha's chief executive officer. "These adverse weather events put pressure on our volumes and resulted in cost increases for the quarter. In light of the poor market conditions and economic uncertainty caused by shifting tariff and trade policies, we continue to prioritize the protection of our liquidity position. As a result, we have lowered our 2025 capex guidance by roughly $27 million at the midpoint; we believe this is achievable without any negative impact to safety across the portfolio or the on-track progress of development mining at our new Kingston Wildcat low vol mine." Todd Munsey , Alpha's chief financial officer, commented on the company's successful efforts to increase its asset-based revolving credit facility (ABL): "We are pleased to announce the increase in size of our ABL facility from $155 million to $225 million along with an extension of the maturity to May of 2029. The amended facility provides Alpha access to additional liquidity and we value the optionality that this facility provides." Financial Performance Alpha reported a net loss of $33.9 million , or $2.60 per diluted share, for the first quarter 2025, as compared to net loss of $2.1 million , or $0.16 per diluted share, in the fourth quarter 2024. Total Adjusted EBITDA was $5.7 million for the first quarter, compared to $53.2 million in the fourth quarter 2024. Coal Revenues Coal Sales Realization (1) First quarter net realized pricing for the Met segment was $118.61 per ton. The quarter-over-quarter decrease in realizations was driven by further deterioration of metallurgical coal indices. The table below provides a breakdown of our Met segment coal sold in the first quarter by pricing mechanism. Cost of Coal Sales Alpha's Met segment cost of coal sales increased to an average of $110.34 per ton in the first quarter, compared to $108.82 per ton in the fourth quarter 2024. Severe weather in January and February disrupted operations and resulted in higher costs for those months. Cost of coal sales improved in the month of March once these external challenges abated. Liquidity and Capital Resources Cash provided by operating activities in the first quarter decreased to $22.2 million as compared to $56.3 million in the fourth quarter 2024. Capital expenditures for the first quarter were $38.5 million compared to $42.7 million for the fourth quarter 2024. As of March 31, 2025, the company had total liquidity of $485.8 million , including cash and cash equivalents of $448.0 million and $112.9 million of unused availability under the asset-based revolving credit facility (ABL), partially offset by a minimum required liquidity of $75.0 million as required by the ABL. As of March 31, 2025, the company had no borrowings and $42.1 million in letters of credit outstanding under the ABL. Total long-term debt, including the current portion of long-term debt as of March 31, 2025, was $5.0 million . Amended and Extended ABL Facility On May 6, 2025 , Alpha amended and extended its ABL agreement to increase the size of the facility to $225.0 million . In addition, the company may request an increase to the capacity of the facility of up to an additional $75.0 million provided that $25.0 million shall be solely for the purpose of providing additional availability to obtain cash collateralized letters of credit. Availability under the ABL facility is calculated monthly and fluctuates based on qualifying amounts of coal inventory, trade accounts receivable, and, in certain circumstances, specified amounts of cash. Following the amendment, the ABL facility matures on May 4, 2029 . Under the amended terms of the ABL facility, letters of credit fees will be calculated at a rate of 2.25%, 2.50% or 2.75% depending on the level of available capacity under the facility, plus a fronting fee of 0.25%. Any future borrowings will bear interest based on the character of the loan (defined as either a "Term Secured Overnight Financing Rate Loan" (or "Term SOFR Loan") or a "Base Rate Loan"). Term SOFR Loans bear interest at a rate equal to Term SOFR, plus 0.10% SOFR Adjustment plus an applicable rate of 2.25%, 2.50% or 2.75%, and Base Rate Loans bear interest at a rate equal to the Base Rate plus an applicable margin rate of 1.25%, 1.50% or 1.75%, in each case, depending on the level of available capacity under the facility at the time of the loan. The company may elect the character and interest period for each loan. All amounts borrowed may be repaid prior to maturity without penalty. A commitment fee of 0.375% will be charged on any unused capacity. The ABL agreement limits the company's ability to make certain restricted payments, including the payment of cash dividends and the repurchase of equity shares under its share repurchase program, if the level of cash it maintains at Regions Bank falls below $100.0 million . The ABL agreement also contains negative and affirmative covenants and requires the company to maintain minimum liquidity, as defined in the ABL agreement, of $75.0 million . As of March 31, 2025 , the company's cash balance at Regions Bank exceeded the $100.0 million threshold and the company is in compliance with all covenants under the ABL agreement. Results of Alpha's 2025 Annual Meeting of Stockholders The company's annual meeting of stockholders was held on May 7, 2025 , and stockholders re-elected all six members of Alpha's board of directors to additional one-year terms and approved all other items proposed by the board for consideration at the meeting. The complete voting results from the annual meeting have been filed with the Securities and Exchange Commission on Form 8-K. 2025 Guidance Adjustments and Performance Update Alpha is reducing 2025 shipment guidance for metallurgical tons to a range of 13.8 million to 14.8 million tons, down from the prior range of 14.5 million to 15.5 million tons. The company expects to ship between 0.8 million and 1.2 million tons of thermal coal for the year, down from the prior range of 1.0 million to 1.4 million tons. Alpha now expects total sales volumes of between 14.6 million and 16.0 million tons for 2025. The company is also lowering its full-year 2025 guidance for capital expenditures. The new range is $130 million to $150 million , down from the prior range of $152 million to $182 million . As of May 1, 2025 , Alpha has committed and priced approximately 50% of its metallurgical coal for 2025 at an average price of $133.04 per ton and 100% of its thermal coal for the year at an average price of $80.75 per ton. Conference Call The company plans to hold a conference call regarding its first quarter results on May 9, 2025, at 10:00 a.m. Eastern time . The conference call will be available live on the investor section of the company's website at https://alphametresources.com/investors . Analysts who would like to participate in the conference call should dial 877-407-0832 (domestic toll-free) or 201-689-8433 (international) approximately 15 minutes prior to start time. About Alpha Metallurgical Resources Alpha Metallurgical Resources (NYSE: AMR) is a Tennessee -based mining company with operations across Virginia and West Virginia . With customers across the globe, high-quality reserves and significant port capacity, Alpha reliably supplies metallurgical products to the steel industry. For more information, visit www.AlphaMetResources.com .  Forward-Looking Statements This news release includes forward-looking statements. These forward-looking statements are based on Alpha's expectations and beliefs concerning future events and involve risks and uncertainties that may cause actual results to differ materially from current expectations. These factors are difficult to predict accurately and may be beyond Alpha's control. Forward-looking statements in this news release or elsewhere speak only as of the date made. New uncertainties and risks arise from time to time, and it is impossible for Alpha to predict these events or how they may affect Alpha. Except as required by law, Alpha has no duty to, and does not intend to, update or revise the forward-looking statements in this news release or elsewhere after the date this release is issued. In light of these risks and uncertainties, investors should keep in mind that results, events or developments discussed in any forward-looking statement made in this news release may not occur. See Alpha's filings with the U.S. Securities and Exchange Commission for more information. FINANCIAL TABLES FOLLOW Non-GAAP Financial Measures The discussion below contains "non-GAAP financial measures." These are financial measures that either exclude or include amounts that are not excluded or included in the most directly comparable measures calculated and presented in accordance with generally accepted accounting principles in the United States ("U.S. GAAP" or "GAAP"). Specifically, we make use of the non-GAAP financial measures "Adjusted EBITDA," "non-GAAP coal revenues," "non-GAAP cost of coal sales," and "non-GAAP coal margin." In addition to net income, we use Adjusted EBITDA to measure the operating performance of our reportable segment. Adjusted EBITDA does not purport to be an alternative to net income as a measure of operating performance or any other measure of operating results, financial performance, or liquidity presented in accordance with GAAP. Moreover, this measure is not calculated identically by all companies and therefore may not be comparable to similarly titled measures used by other companies. Adjusted EBITDA is presented because management believes it is a useful indicator of the financial performance of our coal operations. We use non-GAAP coal revenues to present coal revenues generated, excluding freight and handling fulfillment revenues. Non-GAAP coal sales realization per ton for our operations is calculated as non-GAAP coal revenues divided by tons sold. We use non-GAAP cost of coal sales to adjust cost of coal sales to remove freight and handling costs, depreciation, depletion and amortization - production (excluding the depreciation, depletion and amortization related to selling, general and administrative functions), accretion on asset retirement obligations, amortization of acquired intangibles, net, and idled and closed mine costs. Non-GAAP cost of coal sales per ton for our operations is calculated as non-GAAP cost of coal sales divided by tons sold. Non-GAAP coal margin per ton for our coal operations is calculated as non-GAAP coal sales realization per ton for our coal operations less non-GAAP cost of coal sales per ton for our coal operations. The presentation of these measures should not be considered in isolation, or as a substitute for analysis of our results as reported under GAAP. Management uses non-GAAP financial measures to supplement GAAP results to provide a more complete understanding of the factors and trends affecting the business than GAAP results alone. The definition of these non-GAAP measures may be changed periodically by management to adjust for significant items important to an understanding of operating trends and to adjust for items that may not reflect the trend of future results by excluding transactions that are not indicative of our core operating performance. Furthermore, analogous measures are used by industry analysts to evaluate the Company's operating performance. Because not all companies use identical calculations, the presentations of these measures may not be comparable to other similarly titled measures of other companies and can differ significantly from company to company depending on long-term strategic decisions regarding capital structure, the tax jurisdictions in which companies operate, capital investments and other factors. Included below are reconciliations of non-GAAP financial measures to GAAP financial measures.       The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the Condensed Consolidated Balance Sheets that sum to the total of the same such amounts shown in the Condensed Consolidated Statements of Cash Flows.         INVESTOR & MEDIA CONTACT: EMILY O'QUINN [email protected]   [email protected]   (423) 573-0369 View original content to download multimedia: https://www.prnewswire.com/news-releases/alpha-announces-first-quarter-2025-financial-results-302450419.html SOURCE ALPHA METALLURGICAL RESOURCES, INC.

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