Alpha Metallurgical Resources (AMR), a leading US supplier of metallurgical products for the steel industry, released its financial results for the fourth quarter and full year ending December 31, 2023, highlighting strong performance and continued shareholder value creation.
Key Highlights:
- Net income: $176.0 million ($12.88 per diluted share) in Q4 2023, compared to $93.8 million ($6.65 per diluted share) in Q3 2023.
- Adjusted EBITDA: $266.3 million in Q4 2023, compared to $153.9 million in Q3 2023.
- Full-year 2023 Adjusted EBITDA: Over $1 billion.
- Share repurchase program: $1.1 billion returned to shareholders since inception, with more planned.
- Changes to the board of directors: Announced but not detailed in this press release.
CEO’s Statement:
Andy Eidson, Alpha’s CEO, expressed satisfaction with the company’s strong finish to the year, highlighting achievements in profitability, shareholder value creation, safety, and customer service.
Financial Performance:
- Net income: Increased significantly compared to Q3 2023 due to improved sales volume and pricing within the Met segment.
- Adjusted EBITDA: Also significantly increased compared to Q3 2023, reflecting strong operational performance.
- Met segment pricing: Net realized pricing at $183.76 per ton in Q4 2023, impacting cost of coal sales due to higher sales-related costs and purchased coal costs.
- All Other segment: Cost of coal sales improved compared to Q3 2023.
Liquidity and Capital Resources:
- Cash provided by operating activities: Increased in Q4 2023 compared to Q3 2023.
- Capital expenditures: Increased in Q4 2023 compared to Q3 2023.
- Total liquidity: $287.3 million as of December 31, 2023, including cash and cash equivalents, unused availability under the ABL, partially offset by minimum liquidity requirements.
- No borrowings and low long-term debt: As of December 31, 2023.
Share Repurchase Program:
- $1.5 billion program authorized: Alpha continues to repurchase its common stock, with approximately 6.6 million shares acquired at a cost of approximately $1.1 billion as of February 19, 2024.
- Share repurchases to continue: Based on market conditions, share price, legal requirements, and other factors.
Looking Ahead:
- Alpha is well-positioned for continued success in the metallurgical coal market.
- The company remains committed to returning value to shareholders through share repurchases and other initiatives (not mentioned in this press release).
Source: TheCoalTrader, AI generated
