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News Release

Natural Resource Partners L.P. Announces First Quarter 2017 Results

HOUSTON, May 10, 2017 /PRNewswire/ --

First Quarter 2017 Highlights

  • Completion of recapitalization and extension of 2018 debt maturities
  • Net income attributable to the common unitholders and general partner of $14.3 million
  • Basic net income per common unit of $1.15
  • Net cash provided by operating activities of $20.2 million
  • Net income from continuing operations of $17.0 million
  • Adjusted EBITDA of $51.3 million

 

Natural Resource Partners LP logo. (PRNewsFoto/Natural Resource Partners LP)

Natural Resource Partners L.P. (NYSE:NRP) today reported net income attributable to the common unitholders and general partner for the first quarter of 2017 of $14.3 million, a decrease of $9.1 million from the first quarter of 2016.  NRP's first quarter 2017 results were impacted by costs associated with the recapitalization transactions and asset impairments, while both first quarter and fourth quarter 2016 results include impairment charges and gains on asset sales related to NRP's deleveraging activities.  Please see table (in millions) below for comparative financial information:



Three Months Ended




Three Months Ended





March 31,




March 31,


December 31,





2017


2016


Variance


2017


2016


Variance

Net income attributable to common unitholders and general partner


$

14.3



$

23.4



$

(9.1)



$

14.3



$

3.5



$

10.8


Plus: Recapitalization transaction expenses


17.4





17.4



17.4



3.7



13.7


Plus: Asset impairments


1.8



1.9



(0.1)



1.8



9.2



(7.4)


Less: Fair value adjustments for warrant liabilities


16.6





16.6



16.6





16.6


Less: Gains on asset sales




21.9



(21.9)





1.8



(1.8)


Adjusted net income


$

16.9



$

3.4



$

13.5



$

16.9



$

14.6



$

2.3















Net cash provided by operating activities


$

20.2



$

26.7



$

(6.5)



$

20.2



$

25.2



$

(5.0)















Adjusted EBITDA(1)


$

51.3



$

63.9



$

(12.6)



$

51.3



$

51.1



$

0.2


Less: Gains on asset sales




21.9



(21.9)





1.8



(1.8)


Adjusted EBITDA excluding gains on asset sales


$

51.3



$

42.0



$

9.3



$

51.3



$

49.3



$

2.0







(1)     Reconciliations for all non-GAAP items are shown in the table above or in the tables at the end of this release.

"The first quarter of 2017 was a transformational quarter for NRP, as we completed the recapitalization transactions that strengthened our balance sheet, extended our debt maturities, and enhanced our liquidity," said Wyatt Hogan, President and Chief Operating Officer.  "From an operations perspective, we realized the benefits of materially higher metallurgical coal pricing, as well as increased production from our Illinois Basin properties, reflecting a stronger thermal coal market.  In addition, our soda ash business posted a solid quarter relative to the first quarter of 2016."

Business Results and Outlook

The table below presents NRP's business results by segment for the three months ended March 31, 2017, March 31, 2016 and December 31, 2016:



Operating Business Segments






Coal
Royalty 
and Other






Corporate
and
Financing






Soda Ash


VantaCore



Total



($ In thousands)

Three Months Ended March 31, 2017











Revenues and other income


51,138



10,294



27,221





88,653


Gains on asset sales


29





15





44


Total revenues and other income


51,167



10,294



27,236





88,697


Asset impairments


1,778









1,778


Net income (loss) from continuing operations


35,094



10,294



(1,539)



(26,878)



16,971


Adjusted EBITDA (1)


43,845



12,250



2,375



(7,185)



51,285


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


37,932



12,250



4,046



(33,739)



20,489


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


6





(2,074)





(2,068)


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


16





(96)



54,233



54,153


Distributable Cash Flow (1)


37,937



12,250



2,099



(33,739)



18,547













Three Months Ended March 31, 2016











Revenues and other income


39,418



9,801



24,682





73,901


Gains on asset sales


21,925









21,925


Total revenues and other income


61,343



9,801



24,682





95,826


Asset impairments


1,893









1,893


Net income (loss) from continuing operations


44,418



9,801



(1,057)



(26,811)



26,351


Adjusted EBITDA (1)


53,251



12,250



2,505



(4,153)



63,853


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


21,561



12,250



6,113



(17,236)



22,688


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


42,959





(1,418)





41,541


Net cash used in financing activities of continuing operations




(7,232)



(800)



(46,782)



(54,814)


Distributable Cash Flow (1)


64,520



12,250



4,866



(17,236)



64,400













Three Months Ended December 31, 2016











Revenues and other income


44,271



9,319



32,721





86,311


Gains on asset sales


1,798





3





1,801


Total revenues and other income


46,069



9,319



32,724





88,112


Asset impairments


8,180





1,065





9,245


Net income (loss) from continuing operations


24,014



9,319



997



(30,519)



3,811


Adjusted EBITDA (1)


40,464



12,250



5,555



(7,214)



51,055


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


43,118



12,250



3,720



(32,992)



26,096


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


7,223





(790)





6,433


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


16





(232)



(84,334)



(84,550)


Distributable Cash Flow (1)


50,341



12,250



3,132



(32,992)



32,731







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

Segment Information

Coal Royalty and Other

NRP continued to benefit from higher metallurgical coal prices in the first quarter of 2017, with substantially increased price realizations in Central and Southern Appalachia as compared to the first quarter of 2016.  Metallurgical coal prices increased significantly over the course of 2016, peaking in the fourth quarter primarily as a result of supply rationalizations in China.  While prices retreated in the first quarter of 2017 as more production came on the market, they remained significantly higher than in the comparable period in 2016.  Following another recent spike caused by Cyclone Debbie at the end of March, metallurgical coal prices are in the process of again returning to more sustainable long-term levels.  Over the remainder of 2017, NRP expects prices to remain above the lows experienced in the first half of 2016.  NRP derived approximately 59% of its coal royalty revenues and 38% of its coal production from metallurgical coal in the first quarter.  The domestic thermal coal markets have also shown modest improvements, as production cuts over the last year have rationalized coal stockpiles, and we saw increased thermal coal production from our Illinois Basin properties. Although a mild winter has tempered demand for thermal coal, natural gas prices remain higher than 2016, causing thermal coal to be more competitive for electricity generation as compared to recent years. Despite these improvements, producers of Central Appalachian thermal coal continue to face challenges, as many still have large debt burdens and their production costs remain high relative to sales prices.

Coal royalty and other revenue for the quarter was $51.2 million and coal royalty and other operating income was $35.1 million, representing sequential increases of 11% and 46% respectively.  Compared to the same period of 2016, coal royalty and other revenue declined 17% and coal royalty and other operating income declined 21%.  After adjusting for impairment charges and gains on asset sales, coal royalty and other revenue and coal royalty and other operating income posted sequential increases of 16% and 21% respectively, and year-over-year growth of 30% and 51%, respectively. 

Soda Ash

Revenues and other income related to our equity investment in Ciner Wyoming increased $0.5 million, or 5%, from $9.8 million in the three months ended March 31, 2016 to $10.3 million in the three months ended March 31, 2017.  The positive variance was primarily driven by higher sales volumes combined with lower variable and SG&A costs.  In the first quarter of 2017, Ciner also benefited from higher than anticipated ANSAC pricing in Asia, which was offset in part by lower prices in North and South America.  NRP received $12.3 million in cash distributions from Ciner Wyoming in the first quarter of both 2017 and 2016.

VantaCore

VantaCore's construction aggregates mining business is largely dependent on the strength of the local markets that it serves and is seasonal, with the first quarter being the slowest.  Revenue for the first quarter was $27.2 million, and VantaCore recorded a net loss of $1.5 million, which was in line with expectations for the quarter.

Debt Reduction and Liquidity

During the first quarter of 2017, NRP completed the recapitalization transactions to improve liquidity and strengthen its balance sheet.  As of April 3, 2017, NRP had reduced its debt by $236 million from December 31, 2016 and extended $575 million of its 2018 debt maturities as of December 31, 2016 to 2020 and 2022.  NRP remains focused on further reducing its debt and repositioning the partnership for long-term growth.  During the three months ended March 31, 2017, NRP repaid $210 million outstanding under Opco's credit facility, $40.8 million of Opco's senior notes and $0.2 million of Opco's utility local improvement obligation. These repayments were partially offset by the issuance of $105.0 million of new senior notes due 2022.  On April 3, 2017, NRP redeemed $90 million in principal amount of its 2018 notes at a price of 104.563%.  NRP expects to redeem the remaining $94 million of 2018 notes at par in October 2017 using cash on hand and borrowings under Opco's credit facility.

First Quarter 2017 Distributions

On April 25, 2017, the Board of Directors of GP Natural Resource Partners LLC declared a distribution of $0.45 per unit  to be paid by the Partnership on May 12, 2017 to common unitholders of record on May 5, 2017. In addition, the Board declared a distribution on NRP's 12.0% Class A Convertible Preferred Units with respect to the period such units were outstanding during the first quarter. One-half of the distribution on the preferred units will be paid-in-kind through the issuance of 1,250 additional preferred units.

Conference Call

A conference call will be held today at 11:00 a.m. ET.  To join the conference call, dial (844) 379-6938 and provide the conference code 99679107.  Investors may also listen to the call via the Investor Relations section of the NRP website at www.nrplp.com
Audio replays of the conference call will be available for approximately one week.  To access the replay, dial (855) 859-2056 and provide the conference code 99679107 or 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 interests in coal, aggregates and industrial minerals across the United States.  A large percentage of NRP's revenues are generated from royalties and other passive income.  In addition, NRP owns an equity investment in Ciner Wyoming, a trona/soda ash operation, and owns VantaCore, making NRP one of the top 25 aggregates producers in the United States.

For additional information, please contact Kathy H. Roberts at 713-751-7555 or kroberts@nrplp.com.  Further information about NRP is available on the partnership's website at http://www.nrplp.com.

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, gain on reserve swaps, fair value adjustments for warrant liabilities and income to non-controlling interest; plus distributions from equity earnings in unconsolidated investment, interest expense, debt modification expense, warrant issuance expense, 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, 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. 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" is a non-GAAP financial measure that we define as net cash provided by operating activities of continuing operations, plus returns of unconsolidated equity investments, proceeds from sales of assets, including those included in discontinued operations, and returns of long-term contract receivables—affiliate; 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. DCF 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 the Partnership's ability to make cash distributions to our common and preferred unitholders and our general partner and repay debt.

"Adjusted Net Income" is a non-GAAP financial measure that we define as Net income attributable to common unitholders and general partner, plus recapitalization transaction expenses and asset impairments; less fair value adjustments for warrant liabilities and gains on asset sales. Adjusted net income should not be considered in isolation or as a substitute for operating income (loss), net income (loss), cash flows provided by operating, investing and financial activities, or other income or cash flow statement data prepared in accordance with GAAP. Our management team believes Adjusted net income is useful in evaluating our financial performance because restructuring transaction expenses are one time charges, gains on asset sales are not related to the operations of our business and asset impairments and fair value adjustments for warrant liabilities are non-cash charges and excluding these from net income allows us to better compare results period-over-period. Reconciliations of Net income attributable to common unitholders and general partner to Adjusted net income are included in the table on the first page of this release.

"Adjusted EBITDA Excluding Gains on Asset Sales" is a non-GAAP financial measure that we define as Adjusted EBITDA (a non-GAAP measure defined above) less gains on asset sales. Adjusted EBITDA excluding gains on asset sales should not be considered in isolation or as a substitute for operating income (loss), net income (loss), cash flows provided by operating, investing and financial activities, or other income or cash flow statement data prepared in accordance with GAAP. Our management team believes Adjusted EBITDA excluding gains on asset sales is useful in evaluating our financial performance because gains on asset sales are not related to the operations of our business and excluding these from net income allows us to better compare results period-over-period. Reconciliations of Net income (loss) from continuing operations to Adjusted EBITDA and Adjusted EBITDA to Adjusted EBITDA excluding gains on asset sales are included in the tables attached to this release.

"Adjusted Coal Royalty and Other Revenue" is a non-GAAP financial measure that we define as Coal royalty and other revenues less gains on asset sales. Adjusted coal royalty and other revenue should not be considered in isolation or as a substitute for operating income (loss), net income (loss), cash flows provided by operating, investing and financial activities, or other income or cash flow statement data prepared in accordance with GAAP. Our management team believes Adjusted coal royalty and other revenue useful in evaluating our financial performance because gains on asset sales are not related to the operations of our business and excluding these from Coal royalty and other revenue allows us to better compare results period-over-period. Reconciliations of Coal royalty and other revenue to Adjusted coal royalty and other revenue are included in the tables attached to this release.

"Adjusted Coal Royalty and Other Operating Income" is a non-GAAP financial measure that we define as Coal royalty and other operating income plus asset impairments less gains on asset sales. Adjusted coal royalty and other operating income should not be considered in isolation or as a substitute for operating income (loss), net income (loss), cash flows provided by operating, investing and financial activities, or other income or cash flow statement data prepared in accordance with GAAP. Our management team believes Adjusted coal royalty and other operating income is useful in evaluating our financial performance because gains on asset sales are not related to the operations of our business and asset impairments are non-cash charges and excluding these from Coal royalty and other operating income allows us to better compare results period-over-period. Reconciliations of Coal royalty and other operating income to Adjusted coal royalty and other operating income are included in the tables attached to this release.

"Adjusted Revenue and Other Income" is a non-GAAP financial measure that we define as Revenue and other income less gains on asset sales. Adjusted revenue and other income should not be considered in isolation or as a substitute for operating income (loss), net income (loss), cash flows provided by operating, investing and financial activities, or other income or cash flow statement data prepared in accordance with GAAP. Our management team believes Adjusted revenue and other income is useful in evaluating our financial performance because gains on asset sales are not related to the operations of our business and excluding these from revenues and other income allows us to better compare results period-over-period. Reconciliations of Revenue and other income  to Adjusted revenue and other income are included in the tables attached to this release.

"Adjusted Corporate and Financing Costs" is a non-GAAP financial measure that we define as Corporate and financing net loss from continuing operations plus debt modification expense, warrant issuance expense and performance based incentive compensation expense less  fair value adjustments for warrant liabilities. Adjusted corporate and financing costs should not be considered in isolation or as a substitute for operating income (loss), net income (loss), cash flows provided by operating, investing and financial activities, or other income or cash flow statement data prepared in accordance with GAAP. Our management team believes Adjusted corporate and financing costs is useful in evaluating our financial performance because debt modification expense, warrant issuance expense and performance based incentive compensation expense are one time charges and fair value adjustments for warrant liabilities are non-cash charges and excluding these from net loss allows us to better compare results period-over-period. Reconciliations of Corporate and financing net loss from continuing operations to Adjusted corporate and financing costs are included in the tables attached to this release.

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, but are not limited to, commodity prices; decreases in demand for coal, aggregates and industrial minerals, including trona/soda ash; changes in operating conditions and costs; production cuts by our lessees; unanticipated geologic problems; our liquidity, leverage and access to capital and financing sources; changes in the legislative or regulatory environment, 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.                 

-Financial Tables Follow-

Natural Resource Partners L.P.

Financial Tables


Consolidated Statements of Comprehensive Income

(In thousands, except per unit data)

(Unaudited)



Three Months Ended


March 31,


December 31,


2017


2016


2016

Revenues and other income:






Coal royalty and other

$

34,994



$

28,849



$

28,184


Coal royalty and other—affiliates

16,144



10,569



16,087


VantaCore

27,221



24,682



32,721


Equity in earnings of Ciner Wyoming

10,294



9,801



9,319


Gain on asset sales, net

44



21,925



1,801


Total revenues and other income

88,697



95,826



88,112








Operating expenses:






Operating and maintenance expenses

29,628



26,785



31,797


Operating and maintenance expenses—affiliates, net

2,555



3,484



977


Depreciation, depletion and amortization

9,724



9,780



10,906


Amortization expense—affiliate

768



722



857


General and administrative

6,078



3,235



6,303


General and administrative—affiliates

1,124



937



921


Asset impairments

1,778



1,893



9,245


Total operating expenses

51,655



46,836



61,006








Income from operations

37,042



48,990



27,106








Other income (expense)






Interest expense

(23,141)



(22,196)



(23,305)


Interest expense—affiliate



(462)




Debt modification expense

(7,807)






Warrant issuance expense

(5,709)






Fair value adjustments for warrant liabilities

16,569






Interest income

17



19



10


Other expense, net

(20,071)



(22,639)



(23,295)








Net income from continuing operations

16,971



26,351



3,811


Loss from discontinued operations

(207)



(2,924)



(323)


Net income

$

16,764



$

23,427



$

3,488


Less: income attributable to preferred unitholders

(2,500)






Net income attributable to common unitholders and general partner

$

14,264



$

23,427



$

3,488








Income from continuing operations per common unit






Basic

$

1.17



$

2.12



$

0.31


Diluted

0.03



2.12



0.31








Net income per common unit






Basic

$

1.15



$

1.88



$

0.28


Diluted

0.02



1.88



0.28








Net income

$

16,764



$

23,427



$

3,488


Add: comprehensive income (loss) from unconsolidated investment and other

(1,132)



(545)



1,178


Comprehensive income

$

15,632



$

22,882



$

4,666


 

Natural Resource Partners L.P.

Financial Tables


Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)




Three Months Ended



March 31,


December 31,



2017


2016


2016

Cash flows from operating activities:







Net income


$

16,764



$

23,427



$

3,488


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







Depreciation, depletion and amortization


9,724



9,780



10,906


Amortization expense—affiliates


768



722



857


Distributions from equity earnings from unconsolidated investment


12,250



12,250



12,250


Equity earnings from unconsolidated investment


(10,294)



(9,801)



(9,319)


Gain on asset sales, net


(44)



(21,925)



(1,801)


Fair value adjustments for warrant liabilities


(16,569)






Debt modification expense


7,807






Warrant issuance expense


5,709






Loss from discontinued operations


207



2,924



323


Asset impairments


1,778



1,893



9,245


Other, net


1,090



2,266



1,590


Other, net—affiliates


887



1,783



145


Change in operating assets and liabilities:







Accounts receivable


(1,267)



3,955



772


Accounts receivable—affiliates


(947)



(1,070)



399


Accounts payable


986



280



72


Accounts payable—affiliates


256



225



110


Accrued liabilities


(8,080)



1,274



(2,669)


Accrued liabilities—affiliates




457




Deferred revenue


1,077



(4,063)



4,881


Deferred revenue—affiliates


(2,897)



(985)



(3,032)


Other items, net


1,284



(704)



(2,121)


Net cash provided by operating activities of continuing operations


20,489



22,688



26,096


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


(284)



3,972



(855)


Net cash provided by operating activities


20,205



26,660



25,241









Cash flows from investing activities:







Proceeds from sale of oil and gas royalty properties


(548)



32,848



6,880


Proceeds from sale of coal and aggregates royalty properties


139



9,802



(25)


Return of long-term contract receivables—affiliate


414



309



391


Proceeds from sale of plant and equipment and other


22



3



164


Acquisition of plant and equipment and other


(2,095)



(1,421)



(977)


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


(2,068)



41,541



6,433


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


29



(2,725)



51


Net cash provided by (used in) investing activities


(2,039)



38,816



6,484









Cash flows from financing activities:







Proceeds from issuance of Convertible Preferred Units and Warrants, net


242,100






Proceeds from issuance of 2022 Senior Notes, net


103,688






Repayments of loans


(251,010)



(41,166)



(76,967)


Distributions to common unitholders and general partner


(5,615)



(5,616)



(5,616)


Contributions to discontinued operations


(255)





(805)


Debt issue costs and other


(34,755)



(8,032)



(1,162)


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


54,153



(54,814)



(84,550)


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


255



(10,338)



805


Net cash provided by (used in) financing activities


54,408



(65,152)



(83,745)









Net increase (decrease) in cash and cash equivalents


72,574



324



(52,020)









Cash and cash equivalents of continuing operations at beginning of period


40,371



41,204



92,391


Cash and cash equivalents of discontinued operations at beginning of period




10,569




Cash and cash equivalents at beginning of period


40,371



51,773



92,391









Cash and cash equivalents at end of period


112,945



52,097



40,371


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




1,478




Cash and cash equivalents of continuing operations at end of period


$

112,945



$

50,619



$

40,371









Supplemental cash flow information:







Cash paid during the period for interest


$

19,851



$

13,181



$

29,631


Non-cash financing activities:







Issuance of 2022 Senior Notes in exchange for 2018 Senior Notes


$

240,638



$



$


 

Natural Resource Partners L.P.

Financial Tables


Consolidated Balance Sheets

(In thousands, except unit data)



March 31,


December 31,


2017


2016


(Unaudited)



ASSETS




Current assets:




Cash and cash equivalents

$

112,945



$

40,371


Accounts receivable, net

44,470



43,202


Accounts receivable—affiliates, net

7,605



6,658


Inventory

7,624



6,893


Prepaid expenses and other

4,122



6,137


Current assets of discontinued operations

991



991


Current assets held for sale

17,500




Total current assets

195,257



104,252


Land

12,591



25,252


Plant and equipment, net

48,579



49,443


Mineral rights, net

895,071



908,192


Intangible assets, net

3,065



3,236


Intangible assets, net—affiliate

49,043



49,811


Equity in unconsolidated investment

252,803



255,901


Long-term contracts receivable—affiliate

42,619



43,785


Other assets

9,270



3,791


Other assets—affiliate

952



1,018


Total assets

$

1,509,250



$

1,444,681


LIABILITIES AND CAPITAL




Current liabilities:




Accounts payable

$

6,538



$

6,234


Accounts payable—affiliates

1,196



940


Accrued liabilities

33,509



41,587


Current portion of long-term debt, net

263,502



138,903


Current liabilities of discontinued operations

304



353


Total current liabilities

305,049



188,017


Deferred revenue

46,008



44,931


Deferred revenueaffiliates

68,735



71,632


Long-term debt, net

707,424



987,400


Warrant liabilities

61,417




Other non-current liabilities

3,102



4,565


Total liabilities

1,191,735



1,296,545


Commitments and contingencies




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

159,292




Partners' capital:




Common unitholders' interest (12,232,006 units issued and outstanding)

163,304



152,309


General partner's interest

1,111



887


Accumulated other comprehensive loss

(2,798)



(1,666)


Total partners' capital

161,617



151,530


Non-controlling interest

(3,394)



(3,394)


Total capital

158,223



148,136


Total liabilities and capital

$

1,509,250



$

1,444,681


 

Natural Resource Partners L.P.

Financial Tables


Operating Statistics - Coal Royalty and Other

(in thousands except per ton data)

(Unaudited)




Three Months Ended



March 31,


December 31,



2017


2016


2016

Coal production (tons)







Appalachia







Northern


1,206



1,431



1,833


Central


3,699



3,227



3,176


Southern


562



745



575


Total Appalachia


5,467



5,403



5,584


Illinois Basin


2,017



1,727



2,060


Northern Powder River Basin


950



974



1,047


Total coal production


8,434



8,104



8,691









Coal royalty revenue per ton







Appalachia







Northern


$

0.50



$

0.82



$

0.36


Central


5.46



3.25



4.97


Southern


6.46



2.96



5.64


Illinois Basin


3.30



3.29



3.92


Northern Powder River Basin


2.63



2.72



2.22









Coal royalty revenues







Appalachia







Northern


$

607



$

1,172



$

662


Central


20,184



10,473



15,788


Southern


3,632



2,202



3,241


Total Appalachia


24,423



13,847



19,691


Illinois Basin


6,646



5,686



8,069


Northern Powder River Basin


2,498



2,652



2,323


Gulf Coast






1


Total coal royalty revenue


$

33,567



$

22,185



$

30,084









Other revenues







Minimums recognized as revenue


$

5,196



$

6,964



$

4,136


Transportation and processing fees


4,639



4,234



3,673


Property tax revenue


2,698



3,305



1,558


Wheelage


1,267



413



577


Coal override revenue


824



210



799


Hard mineral royalty revenues


1,244



890



969


Oil and gas royalty revenues


1,491



373



999


Other


212



844



1,476


Total other revenues


$

17,571



$

17,233



$

14,187


Coal royalty and other income


51,138



39,418



44,271


Gain on coal royalty and other segment asset sales


29



21,925



1,798


Total coal royalty and other segment revenues and other income


$

51,167



$

61,343



$

46,069


 

 Natural Resource Partners L.P.

Reconciliation of Non-GAAP Measures


Distributable Cash Flow

(In thousands)






Coal
Royalty and
Other






Corporate
and
Financing






Soda Ash


VantaCore



Total



(Unaudited)

Three Months Ended March 31, 2017











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


$

37,932



$

12,250



$

4,046



$

(33,739)



$

20,489


Add: proceeds from sale of PP&E






22





22


Add: proceeds from sale of mineral rights


(409)









(409)


Add: return on long-term contract receivables—affiliate


414









414


Less: maintenance capital expenditures






(1,969)





(1,969)


Distributable cash flow


$

37,937



$

12,250



$

2,099



$

(33,739)



$

18,547













Three Months Ended March 31, 2016











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


$

21,561



$

12,250



$

6,113



$

(17,236)



$

22,688


Add: proceeds from sale of PP&E






3





3


Add: proceeds from sale of mineral rights


42,650









42,650


Add: return on long-term contract receivables—affiliate


309









309


Less: maintenance capital expenditures






(1,250)





(1,250)


Distributable cash flow


$

64,520



$

12,250



$

4,866



$

(17,236)



$

64,400













Three Months Ended December 31, 2016











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


$

43,118



$

12,250



$

3,720



$

(32,992)



$

26,096


Add: proceeds from sale of PP&E






164





164


Add: proceeds from sale of mineral rights


6,855









6,855


Add: proceeds from sale of assets included in discontinued operations










(17)


Add: return on long-term contract receivables—affiliate


391









391


Less: maintenance capital expenditures


(23)





(752)





(775)


Distributable cash flow


$

50,341



$

12,250



$

3,132



$

(32,992)



$

32,714



 

Natural Resource Partners L.P.

Reconciliation of Non-GAAP Measures


Adjusted EBITDA

(In thousands)






Coal
Royalty and
Other






Corporate
and
Financing






Soda Ash


VantaCore



Total



(Unaudited)

Three Months Ended March 31, 2017











Net income (loss) from continuing operations


$

35,094



$

10,294



$

(1,539)



$

(26,878)



$

16,971


Less: equity earnings from unconsolidated investment




(10,294)







(10,294)


Less: fair value adjustments for warrant liabilities








(16,569)



(16,569)


Add: distributions from unconsolidated investment




12,250







12,250


Add: interest expense






395



22,746



23,141


Add: debt modification expense








7,807



7,807


Add: warrant issuance expense








5,709



5,709


Add: depreciation, depletion and amortization


6,973





3,519





10,492


Add: asset impairments


1,778









1,778


Adjusted EBITDA


$

43,845



$

12,250



$

2,375



$

(7,185)



$

51,285













Three Months Ended March 31, 2016











Net income (loss) from continuing operations


$

44,418



$

9,801



$

(1,057)



$

(26,811)



$

26,351


Less: equity earnings from unconsolidated investment




(9,801)







(9,801)


Add: distributions from unconsolidated investment




12,250







12,250


Add: interest expense








22,658



22,658


Add: depreciation, depletion and amortization


6,940





3,562





10,502


Add: asset impairments


1,893









1,893


Adjusted EBITDA


$

53,251



$

12,250



$

2,505



$

(4,153)



$

63,853













Three Months Ended December 31, 2016











Net income (loss) from continuing operations


$

24,014



$

9,319



$

997



$

(30,519)



$

3,811


Less: equity earnings from unconsolidated investment




(9,319)







(9,319)


Add: distributions from unconsolidated investment




12,250







12,250


Add: interest expense








23,305



23,305


Add: depreciation, depletion and amortization


8,270





3,493





11,763


Add: asset impairments


8,180





1,065





9,245


Adjusted EBITDA


$

40,464



$

12,250



$

5,555



$

(7,214)



$

51,055



 

Natural Resource Partners L.P.

Reconciliation of Non-GAAP Measures


Adjusted Coal Royalty and Other Revenue

(In thousands)










Three Months Ended



March 31,


December 31,



2017


2016


2016



(Unaudited)

Coal royalty and other revenue


$

51,167



$

61,343



$

46,069


Less: gains on asset sales


(29)



(21,925)



(1,798)


Adjusted coal royalty and other revenue


$

51,138



$

39,418



$

44,271



 

Adjusted Coal Royalty and Other Operating Income

(In thousands)










Three Months Ended



March 31,


December 31,



2017


2016


2016



(Unaudited)

Coal royalty and other operating income


$

35,094



$

44,418



$

24,014


Add: asset impairments


1,778



1,893



8,180


Less: gains on asset sales


(29)



(21,925)



(1,798)


Adjusted coal royalty and other operating income


$

36,843



$

24,386



$

30,396


 

Natural Resource Partners L.P.

Reconciliation of Non-GAAP Measures Included in Conference Call


Adjusted Revenue and Other Income

(In thousands)










Three Months Ended



March 31,


December 31,



2017


2016


2016



(Unaudited)

Revenue and other income


$

88,697



$

95,826



88,112


Less: gains on asset sales


(44)



(21,925)



(1,801)


Adjusted revenue and other income


$

88,653



$

73,901



$

86,311
















 

Adjusted Corporate & Financing Costs

(In thousands)










Three Months Ended



March 31,


December 31,



2017


2016


2016



(Unaudited)

Net income (loss) from continuing operations


$

(26,878)



$

(26,811)



$

(30,519)


Add: debt modification expense


7,807






Add: warrant issuance expense


5,709






Add: performance based incentive compensation expense


3,847





3,713


Less: fair value adjustments for warrant liabilities


(16,569)






Adjusted corporate and financing costs


$

(26,084)



$

(26,811)



$

(26,806)


 

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/natural-resource-partners-lp-announces-first-quarter-2017-results-300455038.html

SOURCE Natural Resource Partners L.P.