Segment Information

3 Months Ended

Mar. 31, 2021

Segment Information

Segment Information

18. Segment Information

On December 31, 2020, the Company sold its Viper operation. As a result, the Company revised its reportable segments beginning in the first quarter of 2021 to reflect the manner in which the chief operating decision maker (CODM) views the Company’s businesses going forward for purposes of reviewing performance, allocating resources and assessing future prospects and strategic execution. Prior to the first quarter of 2021, the Company had three reportable segments: MET, Powder River Basin (PRB), and Other Thermal. After the divestment of Viper, the Company has three remaining active thermal mines: West Elk, Black Thunder, and Coal Creek. With two distinct lines of business, metallurgical and thermal, the movement to two segments aligns with how the Company makes decisions and allocates resources. No changes were made to the MET Segment and the three remaining thermal mines have been combined as its “Thermal Segment”. The prior periods have been restated to reflect the change in reportable segments.

The Company’s reportable business segments are based on two distinct lines of business, metallurgical and thermal, and may include a number of mine complexes. The Company manages its coal sales by market, not by individual mining complex. Geology, coal transportation routes to customers, and regulatory environments also have a significant impact on the Company’s marketing and operations management. Mining operations are evaluated based on Adjusted EBITDA, per-ton cash operating costs (defined as including all mining costs except depreciation, depletion, amortization, accretion on asset retirement obligations, and pass-through transportation expenses, divided by segment tons sold), and on other non-financial measures, such as safety and environmental performance. Adjusted EBITDA is not a measure of financial performance in accordance with generally accepted accounting principles, and items excluded from Adjusted EBITDA are significant in understanding and assessing the Company’s financial condition. Therefore, Adjusted EBITDA should not be considered in isolation, nor as an alternative to net income (loss), income (loss) from operations, cash flows from operations or as a measure of our profitability, liquidity or performance under generally accepted accounting principles. The Company uses Adjusted EBITDA to measure the operating performance of its segments and allocate resources to the segments. Furthermore, analogous measures are used by industry analysts and investors to evaluate the Company’s operating performance. Investors should be aware that the Company’s presentation of Adjusted EBITDA may not be comparable to similarly titled measures used by other companies. The Company reports its results of operations primarily through the following reportable segments: Metallurgical (MET) segment, containing the Company’s metallurgical operations in West Virginia, and the Thermal segment containing the Company’s thermal operations in Wyoming and Colorado.

Reporting segment results for the three months ended March 31, 2021 and 2020 are presented below. The Corporate, Other, and Eliminations grouping includes these charges: idle operations; change in fair value of coal derivatives and coal trading activities, net; corporate overhead; land management activities; other support functions; and the elimination of intercompany transactions.

Operating segment results for the three and nine months ended March 31, 2021 and 2019, are presented below. The Corporate, Other and Eliminations grouping includes these charges: idle operations; change in fair value of coal derivatives and coal trading activities, net; corporate overhead; land management activities; other support functions; and the elimination of intercompany transactions.
					Corporate,
					Other and
(In thousands)	MET		Thermal		Eliminations		Consolidated
Three Months Ended March 31, 2021
Revenues	$	178,781	$	177,540	$	1,222	$	357,543
Adjusted EBITDA		41,597		13,081		(23,781)		30,897
Depreciation, depletion and amortization		20,882		4,688		227		25,797
Accretion on asset retirement obligation		508		4,419		510		5,437
Total assets		886,840		196,957		690,361		1,774,158
Capital expenditures		76,021		288		449		76,758
Three Months Ended March 31, 2020
Revenues	$	182,654	$	210,196	$	12,382	$	405,232
Adjusted EBITDA		42,720		(1,902)		(27,903)		12,915
Depreciation, depletion and amortization		22,517		7,545		1,246		31,308
Accretion on asset retirement obligation		486		3,842		678		5,006
Total assets		693,227		377,806		786,473		1,857,506
Capital expenditures		78,648		6,713		2,329		87,690

A reconciliation of net income (loss) to adjusted EBITDA follows:

	Three Months Ended March 31,
(In thousands)	2021		2020
Net income (loss)	$	(6,042)	$	(25,299)
Provision for (benefit from) income taxes		378		(1,791)
Interest expense, net		3,800		2,129
Depreciation, depletion and amortization		25,797		31,308
Accretion on asset retirement obligations		5,437		5,006
Costs related to proposed joint venture with Peabody Energy		—		3,664
Asset impairment and restructuring		—		5,828
Gain on property insurance recovery related to Mountain Laurel longwall		—		(9,000)
Non-service related pension and postretirement benefit costs		1,527		1,096
Reorganization items, net		—		(26)
Adjusted EBITDA	$	30,897	$	12,915
EBITDA from idled or otherwise disposed operations		3,566		5,099
Selling, general and administrative expenses		21,480		22,745
Other		(1,265)		59
Segment Adjusted EBITDA from coal operations	$	54,678	$	40,818