Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 | |||||||
Date of Report (Date of earliest event reported): October 22, 2012 | |||||||
PEABODY ENERGY CORPORATION | |||||||
(Exact name of registrant as specified in its charter) | |||||||
Delaware | 1-16463 | 13-4004153 | |||||
(State or other jurisdiction of incorporation or organization) | (Commission File Number) | (I.R.S. Employer Identification No.) | |||||
701 Market Street, St. Louis, Missouri | 63101-1826 | ||||||
(Address of principal executive offices) | (Zip Code) | ||||||
Registrant's telephone number, including area code (314) 342-3400 | |||||||
N/A | |||||||
(Former name or former address, if changed since last report.) | |||||||
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: | |||||||
[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||||
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||||
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||||
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Exhibit No. | Description of Exhibit |
99.1 | Press Release of Peabody Energy Corporation dated October 22, 2012. |
PEABODY ENERGY CORPORATION | |
October 22, 2012 | By: /s/ Michael C. Crews |
Name: Michael C. Crews | |
Title: Executive Vice President and Chief Financial Officer | |
Exhibit No. | Description | |
99.1 | Press Release of Peabody Energy Corporation dated October 22, 2012. |
![]() | PEABODY ENERGY News Release |
CONTACT: Vic Svec (314) 342-7768 |
• | Third quarter revenues of $2.1 billion lead to Adjusted EBITDA of $460 million |
• | Diluted EPS from continuing operations totals $0.46; Adjusted Diluted EPS of $0.51 |
• | Australian volumes increase 39% over prior year and U.S. margins rise 8% |
• | Targeting full-year Adjusted EBITDA of $1.75 billion to $1.85 billion and Adjusted Diluted EPS of $2.10 to $2.30 |
Quarter Ended | Nine Months Ended | |||||||||||||||
(Dollars in Millions, Except Per Share Data) | Sept. | Sept. | Sept. | Sept. | ||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
Income from Continuing Operations, Net of | ||||||||||||||||
Income Taxes | $ | 122.9 | $ | 291.2 | $ | 520.4 | $ | 791.3 | ||||||||
Remeasurement Expense Related to | ||||||||||||||||
Foreign Income Tax Accounts | 13.6 | (38.7 | ) | 8.7 | (16.9 | ) | ||||||||||
Adjusted Income from Continuing Operations (1) | $ | 136.5 | $ | 252.5 | $ | 529.1 | $ | 774.4 | ||||||||
Diluted EPS from Continuing Operations | $ | 0.46 | $ | 1.04 | $ | 1.89 | $ | 2.84 | ||||||||
Remeasurement Expense Related to | ||||||||||||||||
Foreign Income Tax Accounts | 0.05 | (0.14 | ) | 0.03 | (0.06 | ) | ||||||||||
Adjusted Diluted EPS (1) | $ | 0.51 | $ | 0.90 | $ | 1.92 | $ | 2.78 | ||||||||
• | Metallurgical and thermal coal prices have been impacted by lower than expected global GDP, generation and steel demand, leading to a widespread supply response. In addition to production cutbacks in China, market conditions have driven reductions in the United States, South Africa, Australia and Indonesia. |
• | China's coal imports remained strong in the third quarter to serve coastal demand, despite softening underlying demand in China. China's net coal imports year to date have risen more than 60 million tonnes over prior-year levels, and imports from Australia have more than doubled. China's steel production has begun to increase in October. China continues to close small, inefficient thermal and metallurgical coal mines and, in recent months, coal rail deliveries are approximately 12 percent below prior-year levels. |
• | Europe has continued to increase coal-fueled generation given high-cost global natural gas and declining nuclear generation. Despite ongoing recession in Europe, year-to-date coal generation has risen 14 percent over prior-year levels, led by increases in the United Kingdom, Spain, France, Germany and Italy. |
• | India thermal coal imports have risen 15 percent year to date and reached 10 million tonnes in August, with the country on pace to set a new import record this year. |
• | Japan's coal generation is up 26 percent year to date as high natural gas prices continue to make coal-fueled generation attractive and nuclear utilization continues to remain low. |
• | The conversion to owner-operator status at the Wilpinjong and Millennium mines, which remains on target for completion in April 2013, and will result in cost savings at the operations. Upon completion, approximately 75 percent of Peabody's Australia production will be owner operated. In early October, employees at Millennium overwhelmingly accepted a new workplace agreement that supports the owner-operator transition. Employees at Wilpinjong had previously accepted a new workplace agreement in the second quarter. |
• | The Metropolitan Mine modernization, which is advancing to upgrade facilities, improve productivity and lower costs. |
• | The Burton Mine extension and expansion, which is nearing completion with increased production expected in the fourth quarter. |
• | The installation of top coal caving technology and prep plant upgrades at the North Goonyella high-quality met coal mine, which is expected to be completed by late 2013. |
• | The extension of mine life at the Eaglefield high-quality met coal mine through a co-development agreement. |
Condensed Consolidated Statements of Income (Unaudited) | ![]() | ||||||||||||||||||
For the Quarters and Nine Months Ended Sept. 30, 2012 and 2011 | |||||||||||||||||||
(Dollars in Millions, Except Per Share Data) | |||||||||||||||||||
Quarter Ended | Nine Months Ended | ||||||||||||||||||
Sept. | Sept. | Sept. | Sept. | ||||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||||||
Tons Sold (In Millions) | 66.6 | 62.9 | 185.2 | 181.3 | |||||||||||||||
Revenues | $ | 2,058.8 | $ | 1,980.6 | $ | 6,060.6 | $ | 5,666.1 | |||||||||||
Operating Costs and Expenses | 1,509.0 | 1,399.4 | 4,396.8 | 3,958.7 | |||||||||||||||
Depreciation, Depletion and Amortization | 172.5 | 108.4 | 470.7 | 317.6 | |||||||||||||||
Asset Retirement Obligation Expense | 21.1 | 14.6 | 53.3 | 43.3 | |||||||||||||||
Selling and Administrative Expenses | 68.7 | 71.2 | 202.4 | 191.4 | |||||||||||||||
Other Operating (Income) Loss: | |||||||||||||||||||
Net Gain on Disposal or Exchange of Assets | (0.2 | ) | (1.7 | ) | (7.6 | ) | (31.4 | ) | |||||||||||
Loss from Equity Affiliates: | |||||||||||||||||||
Results of Operations | 21.4 | 3.2 | 47.5 | 9.0 | |||||||||||||||
Amortization of Basis Difference | (0.2 | ) | — | 3.0 | — | ||||||||||||||
Loss from Equity Affiliates | 21.2 | 3.2 | 50.5 | 9.0 | |||||||||||||||
Operating Profit | 266.5 | 385.5 | 894.5 | 1,177.5 | |||||||||||||||
Interest Income | (5.1 | ) | (4.1 | ) | (19.7 | ) | (11.7 | ) | |||||||||||
Interest Expense | 99.4 | 59.2 | 308.3 | 159.1 | |||||||||||||||
Income from Continuing Operations Before Income Taxes | 172.2 | 330.4 | 605.9 | 1,030.1 | |||||||||||||||
Income Tax Provision: | |||||||||||||||||||
Provision | 35.7 | 77.9 | 76.8 | 255.7 | |||||||||||||||
Remeasurement Expense (Benefit) Related to Foreign Income Tax Accounts | 13.6 | (38.7 | ) | 8.7 | (16.9 | ) | |||||||||||||
Income Tax Provision | 49.3 | 39.2 | 85.5 | 238.8 | |||||||||||||||
Income from Continuing Operations, Net of Income Taxes | 122.9 | 291.2 | 520.4 | 791.3 | |||||||||||||||
Loss from Discontinued Operations, Net of Income Taxes | (81.3 | ) | (9.7 | ) | (92.7 | ) | (38.9 | ) | |||||||||||
Net Income | 41.6 | 281.5 | 427.7 | 752.4 | |||||||||||||||
Less: Net (Loss) Income Attributable to Noncontrolling Interests | (1.3 | ) | 7.4 | 7.4 | 17.0 | ||||||||||||||
Net Income Attributable to Common Stockholders | $ | 42.9 | $ | 274.1 | $ | 420.3 | $ | 735.4 | |||||||||||
Diluted EPS (1): | |||||||||||||||||||
Income (Loss) Attributable to Common Stockholders: | |||||||||||||||||||
Continuing Operations (2) | $ | 0.46 | $ | 1.04 | $ | 1.89 | $ | 2.84 | |||||||||||
Discontinued Operations | (0.30 | ) | (0.04 | ) | (0.34 | ) | (0.13 | ) | |||||||||||
Net Income Attributable to Common Stockholders | $ | 0.16 | $ | 1.00 | $ | 1.55 | $ | 2.71 | |||||||||||
Adjusted EBITDA | $ | 459.9 | $ | 508.5 | $ | 1,421.5 | $ | 1,538.4 | |||||||||||
Adjusted Diluted EPS (1): | |||||||||||||||||||
Adjusted Income from Continuing Operations: | |||||||||||||||||||
Continuing Operations (2) | $ | 0.46 | $ | 1.04 | $ | 1.89 | $ | 2.84 | |||||||||||
Remeasurement Expense (Benefit) Related to Foreign Income Tax Accounts | 0.05 | (0.14 | ) | 0.03 | (0.06 | ) | |||||||||||||
Adjusted Income from Continuing Operations | $ | 0.51 | $ | 0.90 | $ | 1.92 | $ | 2.78 | |||||||||||
(1) | Weighted average diluted shares outstanding were 266.8 million and 270.6 million for the three months ended Sept. 30, 2012 and 2011, respectively and 269.2 and 270.5 million for the nine months ended Sept. 30, 2012 and 2011, respectively. We compute EPS using a two-class method using an earnings allocation method that determines EPS separately for common stock and participating securities. As a result, it may not be possible to recalculate EPS as presented in our condensed consolidated statements of income. For the three and nine months ended Sept. 30, 2012 and 2011, there was no dilutive impact of our Convertible Junior Subordinated Debentures on diluted EPS. | ||||||||||||||||||
(2) | Reflects income from continuing operations, net of income taxes less net income attributable to noncontrolling interests. | ||||||||||||||||||
This information is intended to be reviewed in conjunction with the company's filings with the Securities and Exchange Commission. | |||||||||||||||||||
Supplemental Financial Data (Unaudited) | ![]() | ||||||||||||||||||
For the Quarters and Nine Months Ended Sept. 30, 2012 and 2011 | |||||||||||||||||||
Quarter Ended | Nine Months Ended | ||||||||||||||||||
Sept. | Sept. | Sept. | Sept. | ||||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||||||
Revenue Summary (Dollars in Millions) | |||||||||||||||||||
U.S. Mining Operations | $ | 1,139.2 | $ | 1,127.0 | $ | 3,263.6 | $ | 3,149.8 | |||||||||||
Australian Mining Operations | 866.0 | 718.7 | 2,605.0 | 2,155.3 | |||||||||||||||
Trading and Brokerage Operations | 45.6 | 131.5 | 173.7 | 329.5 | |||||||||||||||
Other | 8.0 | 3.4 | 18.3 | 31.5 | |||||||||||||||
Total | $ | 2,058.8 | $ | 1,980.6 | $ | 6,060.6 | $ | 5,666.1 | |||||||||||
Tons Sold (In Millions) | |||||||||||||||||||
Midwestern U.S. Mining Operations | 7.0 | 7.6 | 20.5 | 21.5 | |||||||||||||||
Western U.S. Mining Operations | 44.0 | 43.7 | 124.4 | 127.2 | |||||||||||||||
Australian Mining Operations | 8.5 | 6.1 | 23.3 | 18.2 | |||||||||||||||
Trading and Brokerage Operations | 7.1 | 5.5 | 17.0 | 14.4 | |||||||||||||||
Total (1) | 66.6 | 62.9 | 185.2 | 181.3 | |||||||||||||||
Revenues per Ton - Mining Operations | |||||||||||||||||||
Midwestern U.S. | $ | 51.00 | $ | 48.79 | $ | 51.25 | $ | 47.69 | |||||||||||
Western U.S. | 17.81 | 17.38 | 17.80 | 16.71 | |||||||||||||||
Total - U.S. | 22.35 | 21.99 | 22.53 | 21.18 | |||||||||||||||
Australia | 101.85 | 117.57 | 111.84 | 117.61 | |||||||||||||||
Operating Costs per Ton - Mining Operations (2) | |||||||||||||||||||
Midwestern U.S. | $ | 36.16 | $ | 34.83 | $ | 35.76 | $ | 34.07 | |||||||||||
Western U.S. | 12.27 | 12.37 | 12.85 | 12.52 | |||||||||||||||
Total - U.S. | 15.54 | 15.67 | 16.09 | 15.63 | |||||||||||||||
Australia | 75.77 | 77.32 | 79.32 | 71.11 | |||||||||||||||
Gross Margin per Ton - Mining Operations (2) | |||||||||||||||||||
Midwestern U.S. | $ | 14.84 | $ | 13.95 | $ | 15.49 | $ | 13.62 | |||||||||||
Western U.S. | 5.54 | 5.01 | 4.95 | 4.19 | |||||||||||||||
Total - U.S. | 6.81 | 6.32 | 6.44 | 5.55 | |||||||||||||||
Australia | 26.08 | 40.25 | 32.52 | 46.50 | |||||||||||||||
Operating Profit per Ton | $ | 4.00 | $ | 6.11 | $ | 4.83 | $ | 6.49 | |||||||||||
Quarter Ended | Nine Months Ended | ||||||||||||||||||
Sept. | Sept. | Sept. | Sept. | ||||||||||||||||
(Dollars in Millions) | 2012 | 2011 | 2012 | 2011 | |||||||||||||||
Adjusted EBITDA - U.S. Mining Operations | $ | 347.4 | $ | 324.1 | $ | 933.7 | $ | 825.0 | |||||||||||
Adjusted EBITDA - Australian Mining Operations | 221.4 | 246.1 | 757.4 | 852.2 | |||||||||||||||
Adjusted EBITDA - Trading and Brokerage Operations | 35.7 | 57.4 | 109.2 | 134.6 | |||||||||||||||
Adjusted EBITDA - Resource Management (3) | (0.4 | ) | 0.2 | 2.3 | 25.9 | ||||||||||||||
Selling and Administrative Expenses | (68.7 | ) | (71.2 | ) | (202.4 | ) | (191.4 | ) | |||||||||||
Other Operating Costs, Net (4) | (75.5 | ) | (48.1 | ) | (178.7 | ) | (107.9 | ) | |||||||||||
Adjusted EBITDA | 459.9 | 508.5 | 1,421.5 | 1,538.4 | |||||||||||||||
Depreciation, Depletion and Amortization | (172.5 | ) | (108.4 | ) | (470.7 | ) | (317.6 | ) | |||||||||||
Asset Retirement Obligation Expense | (21.1 | ) | (14.6 | ) | (53.3 | ) | (43.3 | ) | |||||||||||
Amortization of Basis Difference Related to Equity Affiliates | 0.2 | — | (3.0 | ) | — | ||||||||||||||
Operating Profit | 266.5 | 385.5 | 894.5 | 1,177.5 | |||||||||||||||
Operating Cash Flows | 616.0 | 574.9 | 1,291.5 | 1,190.5 | |||||||||||||||
Coal Reserve Lease Expenditures | 158.7 | 42.4 | 247.9 | 42.4 | |||||||||||||||
Capital Expenditures | 308.4 | 246.2 | 741.5 | 583.2 | |||||||||||||||
(1) | Metallurgical coal sales totaled 3.5 million and 1.6 million tons for the three months ended Sept. 30, 2012 and 2011, respectively and 10.0 million and 6.9 million for the nine months ended Sept. 30, 2012 and 2011, respectively. | ||||||||||||||||||
(2) | Includes revenue-based production taxes and royalties; excludes depreciation, depletion and amortization; asset retirement obligation expense; selling and administrative expenses; and certain other costs related to post-mining activities. | ||||||||||||||||||
(3) | Includes certain asset sales, property management costs and revenues, and coal royalty expense. | ||||||||||||||||||
(4) | Includes Generation Development and Btu Conversion costs, costs associated with post-mining activities, (income) losses from equity interests and provisions for certain litigation. | ||||||||||||||||||
This information is intended to be reviewed in conjunction with the company's filings with the Securities and Exchange Commission. |
Condensed Consolidated Balance Sheets | ![]() | ||||||||
Sept. 30, 2012 and Dec. 31, 2011 | |||||||||
(Dollars in Millions) | |||||||||
(Unaudited) | |||||||||
Sept. 30, 2012 | Dec. 31, 2011 | ||||||||
Cash and Cash Equivalents | $ | 648.0 | $ | 799.1 | |||||
Receivables, Net | 682.2 | 922.5 | |||||||
Inventories | 554.9 | 444.4 | |||||||
Assets from Coal Trading Activities, Net | 56.2 | 44.6 | |||||||
Deferred Income Taxes | 15.8 | 27.3 | |||||||
Other Current Assets | 697.6 | 768.0 | |||||||
Total Current Assets | 2,654.7 | 3,005.9 | |||||||
Net Property, Plant, Equipment and Mine Development | 12,511.1 | 11,251.6 | |||||||
Investments and Other Assets | 1,684.6 | 2,475.5 | |||||||
Total Assets | $ | 16,850.4 | $ | 16,733.0 | |||||
Current Maturities of Debt | $ | 124.8 | $ | 101.1 | |||||
Liabilities from Coal Trading Activities, Net | 19.9 | 10.3 | |||||||
Accounts Payable and Accruals | 1,645.1 | 1,712.3 | |||||||
Total Current Liabilities | 1,789.8 | 1,823.7 | |||||||
Long-Term Debt | 6,238.3 | 6,556.4 | |||||||
Deferred Income Taxes | 385.0 | 523.2 | |||||||
Other Long-Term Liabilities | 2,460.3 | 2,313.9 | |||||||
Total Liabilities | 10,873.4 | 11,217.2 | |||||||
Stockholders' Equity | 5,977.0 | 5,515.8 | |||||||
Total Liabilities and Stockholders' Equity | $ | 16,850.4 | $ | 16,733.0 | |||||
This information is intended to be reviewed in conjunction with the company's filings with the Securities and Exchange Commission. | |||||||||
Reconciliation of Adjusted EBITDA and Adjusted Income from Continuing Operations to Income from Continuing Operations, Net of Income Taxes (Unaudited) | ![]() | ||||||||||||||||
For the Quarters and Nine Months Ended Sept. 30, 2012 and 2011 | |||||||||||||||||
(Dollars in Millions) | Quarter Ended | Nine Months Ended | |||||||||||||||
Sept. | Sept. | Sept. | Sept. | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||||
Adjusted EBITDA | $ | 459.9 | $ | 508.5 | $ | 1,421.5 | $ | 1,538.4 | |||||||||
Depreciation, Depletion and Amortization | 172.5 | 108.4 | 470.7 | 317.6 | |||||||||||||
Asset Retirement Obligation Expenses | 21.1 | 14.6 | 53.3 | 43.3 | |||||||||||||
Amortization of Basis Difference Related to Equity Affiliates | (0.2 | ) | — | 3.0 | — | ||||||||||||
Interest Income | (5.1 | ) | (4.1 | ) | (19.7 | ) | (11.7 | ) | |||||||||
Interest Expense | 99.4 | 59.2 | 308.3 | 159.1 | |||||||||||||
Income Tax Provision Before Remeasurement of Foreign Income Tax Accounts | 35.7 | 77.9 | 76.8 | 255.7 | |||||||||||||
Adjusted Income from Continuing Operations (1) | 136.5 | 252.5 | 529.1 | 774.4 | |||||||||||||
Remeasurement Expense (Benefit) Related to Foreign Income Tax Accounts | 13.6 | (38.7 | ) | 8.7 | (16.9 | ) | |||||||||||
Income from Continuing Operations, Net of Income Taxes | $ | 122.9 | $ | 291.2 | $ | 520.4 | $ | 791.3 | |||||||||
Net (Loss) Income Attributable to Noncontrolling Interests | $ | (1.3 | ) | $ | 7.4 | $ | 7.4 | $ | 17.0 | ||||||||
Reconciliation of Adjusted EBITDA and Adjusted Income from Continuing Operations to Income from Continuing Operations, Net of Income Taxes - Targets for the Year Ending December 31, 2012 (Unaudited) | |||||||||||||||||
(Dollars in Millions) | Year Ending | ||||||||||||||||
December 31, 2012 | |||||||||||||||||
Targeted Results | |||||||||||||||||
Low | High | ||||||||||||||||
Adjusted EBITDA | $ | 1,750 | $ | 1,850 | |||||||||||||
Depreciation, Depletion and Amortization | 637 | 663 | |||||||||||||||
Asset Retirement Obligation Expenses | 68 | 65 | |||||||||||||||
Interest Income | (26 | ) | (27 | ) | |||||||||||||
Interest Expense | 411 | 408 | |||||||||||||||
Income Tax Provision Before Remeasurement of Foreign Income Tax Accounts | 81 | 104 | |||||||||||||||
Adjusted Income from Continuing Operations (1) | 579 | 637 | |||||||||||||||
Remeasurement Expense Related to Foreign Income Tax Accounts | 9 | 9 | |||||||||||||||
Income from Continuing Operations, Net of Income Taxes | $ | 570 | $ | 628 | |||||||||||||
Net Income Attributable to Noncontrolling Interests | $ | 10 | $ | 12 | |||||||||||||
Adjusted Diluted EPS: | |||||||||||||||||
Adjusted Income from Continuing Operations: | |||||||||||||||||
Continuing Operations (2) | $ | 2.07 | $ | 2.27 | |||||||||||||
Remeasurement Expense Related to Foreign Income Tax Accounts | 0.03 | 0.03 | |||||||||||||||
Adjusted Income from Continuing Operations | $ | 2.10 | $ | 2.30 | |||||||||||||
(1) | In order to arrive at the numerator used to calculate adjusted diluted EPS, it is necessary to deduct net income attributable to noncontrolling interests from this amount. | ||||||||||||||||
(2) | Reflects income from continuing operations, net of income taxes less net income attributable to noncontrolling interests. | ||||||||||||||||
This information is intended to be reviewed in conjunction with the company's filings with the Securities and Exchange Commission. |