0001193125-12-205196.txt : 20120503 0001193125-12-205196.hdr.sgml : 20120503 20120502174756 ACCESSION NUMBER: 0001193125-12-205196 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20120502 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20120503 DATE AS OF CHANGE: 20120502 FILER: COMPANY DATA: COMPANY CONFORMED NAME: NATURAL RESOURCE PARTNERS LP CENTRAL INDEX KEY: 0001171486 STANDARD INDUSTRIAL CLASSIFICATION: BITUMINOUS COAL & LIGNITE SURFACE MINING [1221] IRS NUMBER: 352164875 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-31465 FILM NUMBER: 12806666 BUSINESS ADDRESS: STREET 1: 601 JEFFERSON STREET STREET 2: SUITE 3600 CITY: HOUSTON STATE: TX ZIP: 77002 BUSINESS PHONE: 713-751-7516 MAIL ADDRESS: STREET 1: 601 JEFFERSON STREET STREET 2: SUITE 3600 CITY: HOUSTON STATE: TX ZIP: 77002 8-K 1 d345977d8k.htm FORM 8-K FORM 8-K

 

 

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED): May 2, 2012

 

 

NATURAL RESOURCE PARTNERS L.P.

(Exact name of registrant as specified in its charter)

 

 

 

Delaware   001-31465   35-2164875

(State or other jurisdiction of

incorporation or organization)

  

(Commission

File Number)

  

(I.R.S. Employer

Identification No.)

601 Jefferson, Suite 3600

Houston, Texas

   77002
(Address of principal executive offices)   (Zip code)

Registrant’s telephone number, including area code: (713) 751-7507

 

 

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))

 

 

 

Item 2.02. Results of Operations and Financial Condition.

In accordance with General Instruction B.2. of Form 8-K, the following information and the exhibits referenced therein are being furnished pursuant to Item 2.02 of Form 8-K and are not deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, are not subject to the liabilities of that section and are not deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended.

On May 2, 2012, Natural Resource Partners L.P. announced via press release its earnings and operating results for the first quarter of 2012. A copy of NRP’s press release is attached hereto as Exhibit 99.1.

Item 9.01 Financial Statements and Exhibits.

(c) Exhibits

          99.1    Natural Resource Partners L.P. press release dated as of May 2, 2012.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

NATURAL RESOURCE PARTNERS L.P.
(Registrant)
By:   NRP (GP) LP
  its General Partner
By:   GP Natural Resource Partners LLC
  its General Partner
 

/s/ Wyatt L. Hogan

  Wyatt L. Hogan
  Vice President and General Counsel

Dated: May 2, 2012

EX-99.1 2 d345977dex991.htm NATURAL RESOURCE PARTNERS L.P. PRESS RELEASE Natural Resource Partners L.P. press release

Exhibit 99.1

 

Natural Resource Partners L.P.    LOGO
601 Jefferson St., Suite 3600, Houston, TX 77002   
  
NEWS RELEASE   

 

 

Natural Resource Partners L.P.

Reports First Quarter 2012 Results

Highlights:

 

  •  

Revenues of $91.9 million, up 8% from 1Q2011

 

  •  

Net income attributable to limited partners of $50.3 million, up 13% from 1Q2011

 

  •  

Net income per unit of $0.47, up 12% from 1Q2011

 

  •  

Metallurgical coal accounts for 31% of coal production and 45% of coal royalty revenues

 

  •  

Distributable cash flow of $36.4 million, down 7% from 1Q2011

 

  •  

Distribution of $0.55 per unit

HOUSTON, May 2, 2012 – Natural Resource Partners L.P. (NYSE:NRP) today reported revenues of $91.9 million in the first quarter, an 8% increase over the first quarter 2011. Net income attributable to the limited partners increased 13% to $50.3 million for the first quarter of 2012, compared to $44.4 million for the first quarter of 2011. This represents a $0.05 increase in earnings per unit, to $0.47 in the first quarter 2012 compared to $0.42 in the first quarter of 2011. Distributable cash flow, a non-GAAP measure, of $36.4 million, declined 7% from the $39.0 million reported for the first quarter of 2011.

“Our lessees continue to perform as expected in this weak coal environment,” said Nick Carter, President and Chief Operating Officer. “While production and revenues have increased over the first quarter 2011, production curtailments announced by lessees earlier this year have caused our first quarter results to be modestly below the fourth quarter 2011, but on track with our guidance issued in February.”

Market Outlook

“While we expect the first half of 2012 to be weak, we expect the metallurgical coal markets to begin to recover modestly in the second half,” said Carter. “The bright light for the coal industry continues to be domestic demand for metallurgical coal driven by the increased production of automobiles in the United States. In addition, metallurgical coal exports are up over 7% year-to-date.”

NRP Reports 1st Quarter 2012 Results    Page 2 of  1 2

 

With NRP’s strong position in metallurgical coal and further diversification into the Illinois Basin steam coal, much of which is being exported, NRP is better protected from the weak domestic demand and the declines being experienced in Central Appalachia thermal coal.

Thermal coal demand has been and will continue to be weak in the near term as the United States has experienced a very mild winter, coal inventories at utilities continue to be near all-time highs, low natural gas prices have caused switching of natural gas for some normal coal burn, and new environmental regulations have caused some uncertainty. However, NRP believes at this point that we are near the maximum level of switching that can occur in the electrical grid and we should not see any further major degradation of the coal burn due to switching without additions to infrastructure.

“As the economy improves, the acquisitions that we have made in aggregates will start to grow and add further to our profitability and cash flows. In addition, over the last two quarters, NRP has started acquiring oil and gas mineral acreage in the Mississippian Lime oil play in Oklahoma,” said Carter. “This further diversification will benefit NRP in the long term.”

First Quarter 2012 versus First Quarter 2011

 

      Quarter Ended  
      Mar
2012		      Mar
2011		      %
Change		  

Highlights

    (in thousands except per unit, per ton and %)  

Revenues

         

Total revenues

    $ 91,872       $ 84,852         8 % 

Coal production

      12,115         11,946         1 % 

Coal royalty revenues

    $ 59,916       $ 65,365         -8 % 

Average coal royalty revenue per ton

    $ 4.95       $ 5.47         -10 % 

Revenues other than coal royalties

    $ 31,956       $ 19,487         64 % 

Net Income

         

Net income to limited partners

    $ 50,283       $ 44,376         13 % 

Net income per unit

    $ 0.47       $ 0.42         12 % 

Average units outstanding

      106,028         106,028         0 % 

Distributable cash flow

    $ 36,427       $ 38,975         -7 % 

Total revenues improved 8% to $91.9 million for the first quarter of 2012, compared to $84.9 million reported for the same period last year.

First quarter 2012 coal royalty revenues declined 8% to $59.9 million from $65.4 million last year due to a decline in realizations for coal royalty revenue per ton. Coal production increased modestly to 12.1 million tons, with an increase in Northern Appalachia

NRP Reports 1st Quarter 2012 Results    Page 3 of  12

 

offsetting an 11% decrease in Central Appalachia, being the most significant changes. Average coal royalty revenue per ton decreased 10% from the first quarter of 2011 to $4.95 per ton. The most dramatic changes were seen in Northern Appalachia and the Gulf Coast region. In Northern Appalachia, production resumed on a property with an old lease that has a very low royalty rate, while production from a new lease in the Gulf Coast region significantly improved the royalties per ton from that region. Metallurgical coal production accounted for 31% of this quarter’s production and 45% of coal royalty revenue.

During the first quarter, NRP recognized as revenue $9.6 million in minimums associated with the Gatling Ohio mine. Excluding those minimums, NRP generated $22.4 million of its first quarter revenues from sources other than coal royalty revenues, compared to $19.5 million for the same period in 2011.

Total expenses decreased $1.9 million, or 7%, from the first quarter of 2011 to $27.0 million. Expenses decreased due to both decreases in depreciation, depletion and amortization as well as decreased general and administrative expenses. Depreciation and depletion decreased due to lower amortization as a result of the Gatling impairments and the change in the mix of properties. In addition, general and administrative expenses decreased due to the decrease in unit price that affects the accruals for the long term incentive plan. Interest expense in the first quarter 2011 increased $3.0 million due to increased debt for acquisitions incurred during 2011.

Net income attributable to the limited partners increased 13% to $50.3 million over the first quarter of 2011 due to improved revenues; while net income per unit increased to $0.47 per unit from $0.42 per unit.

Distributable cash flow decreased 7% to $36.4 million from $39.0 million generated in the first quarter of 2011 due to increased reserves for future principal payments of $5.0 million that more than offset the $2.5 million improvement in cash flow from operations.

NRP Reports 1st Quarter 2012 Results    Page 4 of  12

 

First Quarter 2012 versus Fourth Quarter 2011

 

Highlights

    1Q12      4Q11     % Change  
   (in thousands, except per ton and per unit)        

Total revenues

    $ 91,872       $ 97,651        -6 % 

Coal production

      12,115         12,042        1 % 

Coal royalty revenues

    $ 59,916       $ 67,638        -11 % 

Average coal royalty revenue per ton

    $ 4.95       $ 5.62        -12 % 

Revenues other than coal royalty

    $ 31,956       $ 30,013        6 % 

Net income (loss) to limited partners

    $ 50,283       $ (14,036 )      NM   

Net income to the limited partners, before considering the impairment(1)

    $ 50,283       $ 54,960        -9 % 

Net income (loss) per unit

    $ 0.47       $ (0.13 )      NM   

Net income per unit, before considering the impairment(1)

    $ 0.47       $ 0.52        -10 % 

Average units outstanding

      106,028         106,028        0 % 

Distributable cash flow

    $ 36,427       $ 79,552        -54 % 

 

(1)

See Non-GAAP reconciliation

Total revenues for the first quarter 2012 declined 6% from the fourth quarter 2011 to $91.9 million, due to a $7.7 million decrease in coal royalty revenues offset by a $1.9 million increase in revenues other than coal royalty revenue. While production was virtually flat with the prior quarter, realizations decreased by $0.67 to $4.95 per ton.

Net income to the limited partners increased to $50.3 million over the fourth quarter of 2011 loss of $14.0 million, which included an impairment charge. Net income per unit increased to $0.47 per unit. Before considering the impairment recorded in the fourth quarter 2011, net income decreased $0.05 per unit in the first quarter 2012 from the $0.52 per unit realized in the fourth quarter 2011.

As occurs in the first quarter of every year, NRP had a significant decline in distributable cash flow as compared to the fourth quarter due to annually recurring changes in working capital. Distributable cash flow decreased in the first quarter 2012 by $43.1 million to $36.4 million from the fourth quarter 2011. The main factors were:

 

  •  

$16.3 million in recurring interest payments on the senior notes,

 

  •  

$8.5 million in incentive compensation payments, net of accruals,

 

  •  

$4.3 million in annual property tax payments, net of accruals

 

  •  

$6.1 million increase in accounts receivable, and

 

  •  

$5.4 million increase in reserve for principal payments.

NRP Reports 1st Quarter 2012 Results    Page 5 of  12

 

Acquisitions

During the first quarter of 2012, NRP completed acquisitions totaling $126.7 million, of which $79.7 million was funded from cash. The remaining $47.0 million was funded through NRP’s credit facility.

The purchase prices for the acquisitions are as follows:

Coal

 

  •  

$40.0 million for reserves from Colt LLC at the Deer Run mine in the Illinois Basin

 

  •  

$50.0 million for the infrastructure assets at the Sugar Camp mine in the Illinois Basin

 

  •  

$8.9 million for a contractual override at the Sugar Camp mine in the Illinois Basin

 

  •  

$2.8 million for metallurgical reserves adjacent to current NRP holdings in Central Appalachia

Oil and Gas

 

  •  

$24.7 million for mineral acreage in the Mississippian Lime oil play in Oklahoma

Liquidity and Capital Resources

At the end of the first quarter, NRP had approximately $107.4 million in cash, down approximately $107.5 million from the cash available at year-end. This reduction in cash was due primarily to the acquisitions mentioned above and principal and interest payments paid in the first quarter. During the first quarter, NRP paid the following from the cash balance at year-end:

 

  •  

$79.7 million for acquisitions

 

  •  

$15.2 million for scheduled principal payments on senior notes

 

  •  

$16.3 million for interest payments

During the first quarter, NRP borrowed $47 million on its credit facility with $253 million remaining available at quarter-end.

Distributions

On April 19, the partnership announced the first quarter distribution of $0.55 per unit. The distribution will be paid on May 14, 2012 to unitholders of record on May 4, 2012.

Company Profile

Natural Resource Partners L.P. is a master limited partnership headquartered in Houston, TX, with its operations headquarters in Huntington, WV. NRP is principally engaged in the business of owning and managing mineral reserve properties. NRP primarily owns coal, aggregate and oil and gas reserves across the United States that generate royalty income for the partnership.

NRP Reports 1st Quarter 2012 Results    Page 6 of  12

 

Further information about NRP is available on the partnership’s website at http://www.nrplp.com.

Disclosure of Non-GAAP Financial Measures

Distributable cash flow represents cash flow from operations less actual principal payments and cash reserves set aside for scheduled principal payments on the senior notes. Distributable cash flow is a “non-GAAP financial measure” that is presented because management believes it is a useful adjunct to net cash provided by operating activities under GAAP. Distributable cash flow is a significant liquidity metric that is an indicator of NRP’s ability to generate cash flows at a level that can sustain or support an increase in quarterly cash distributions paid to its partners. Distributable cash flow is also the quantitative standard used throughout the investment community with respect to publicly traded partnerships. Distributable cash flow 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. A reconciliation of distributable cash flow to net cash provided by operating activities is included in the tables attached to this release. Distributable cash flow may not be calculated the same for NRP as other companies.

Forward Looking Statements

This press release may include “forward-looking statements” as defined by the Securities and Exchange Commission. Such statements include the outlook. 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, decreases in demand for coal; changes in operating conditions and costs; production cuts by our lessees; commodity prices; unanticipated geologic problems; 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.

 

12-08    -Financial statements follow-   

NRP Reports 1st Quarter 2012 Results    Page 7 of  12

 

Natural Resource Partners L.P.

Operating Statistics

(in thousands except per ton data)

 

     Quarter Ended  
     Mar
2012		      Mar
2011		  
     (unaudited)      (unaudited)  

Coal Royalties:

      

Coal royalty revenues:

      

Appalachia

      

Northern

    $ 3,007       $ 4,681   

Central

      42,072         45,442   

Southern

      4,304         4,741   
  

 

 

     

 

 

  

Total Appalachia

    $ 49,383       $ 54,864   

Illinois Basin

      8,769         9,060   

Northern Powder River Basin

      1,462         1,393   

Gulf Coast Lignite

      302         48   
  

 

 

     

 

 

  

Total

    $ 59,916       $ 65,365   
  

 

 

     

 

 

  

Coal royalty production (tons):

      

Appalachia

      

Northern

      2,401         1,175   

Central

      6,535         7,327   

Southern

      553         648   
  

 

 

     

 

 

  

Total Appalachia

      9,489         9,150   

Illinois Basin

      2,091         2,276   

Northern Powder River Basin

      468         480   

Gulf Coast Lignite

      67         40   
  

 

 

     

 

 

  

Total

      12,115         11,946   
  

 

 

     

 

 

  

Average royalty revenue per ton:

      

Appalachia

      

Northern

    $ 1.25       $ 3.98   

Central

      6.44         6.20   

Southern

      7.78         7.32   

Total Appalachia

      5.20         6.00   

Illinois Basin

      4.19         3.98   

Northern Powder River Basin

      3.12         2.90   

Gulf Coast Lignite

      4.51         1.20   

Combined average royalty revenue per ton

    $ 4.95       $ 5.47   

Aggregates:

      

Royalty revenues

    $ 1,716       $ 1,194   

Production

      1,367         1,265   

Average base royalty per ton

    $ 1.26       $ 0.94   

Oil and gas:

      

Royalty revenues

    $ 1,388       $ 2,992   

NRP Reports 1st Quarter 2012 Results    Page 8 of  12

 

Natural Resource Partners L.P.

Consolidated Statements of Comprehensive Income

(in thousands, except per unit data)

 

     Quarter Ended  
     Mar 2012     Mar 2011  
     (unaudited)  

Revenues:

     

Coal royalties

    $ 59,916      $ 65,365   

Aggregate royalties

      1,716        1,194   

Processing fees

      2,126        3,089   

Transportation fees

      4,108        4,098   

Oil and gas royalties

      1,388        2,992   

Property taxes

      4,488        3,012   

Minimums recognized as revenue

      11,714        507   

Override royalties

      5,142        3,043   

Other

      1,274        1,552   
  

 

 

    

 

 

  

Total revenues

      91,872        84,852   

Operating costs and expenses:

     

Depreciation, depletion and amortization

      12,409        14,322   

Asset impairments

      —          —     

General and administrative

      8,950        10,196   

Property, franchise and other taxes

      5,016        3,697   

Transportation costs

      473        468   

Coal royalty and override payments

      200        308   
  

 

 

    

 

 

  

Total operating costs and expenses

      27,048        28,991   
  

 

 

    

 

 

  

Income from operations

      64,824        55,861   

Other income (expense)

     

Interest expense

      (13,560 )      (10,587 ) 

Interest income

      45        8   
  

 

 

    

 

 

  

Income before non-controlling interest

      51,309        45,282   

Less non-controlling interest

      —          —     
  

 

 

    

 

 

  

Net income

    $ 51,309      $ 45,282   
  

 

 

    

 

 

  

Net income attributable to:

     

General partner

    $ 1,026      $ 906   
  

 

 

    

 

 

  

Limited partners

    $ 50,283      $ 44,376   
  

 

 

    

 

 

  

Basic and diluted net income per limited partner unit:

    $ 0.47      $ 0.42   
  

 

 

    

 

 

  

Weighted average number of units outstanding:

      106,028        106,028   
  

 

 

    

 

 

  

Comprehensive income

    $ 51,319      $ 45,294   
  

 

 

    

 

 

  

NRP Reports 1st Quarter 2012 Results    Page 9 of  12

 

Natural Resource Partners L.P.

Consolidated Statements of Cash Flow

(in thousands, except per unit data)

 

     Quarter Ended  
     Mar 2012     Mar 2011  
     (unaudited)  

Cash flows from operating activities:

     

Net income

    $ 51,309      $ 45,282   

Adjustments to reconcile net income to net cash provided by operating activities:

     

Depreciation, depletion and amortization

      12,409        14,322   

Non-cash interest charge, net

      149        150   

Change in operating assets and liabilities:

     

Accounts receivable

      (1,237 )      (4,530 ) 

Other assets

      200        222   

Accounts payable and accrued liabilities

      1,083        (1,147 ) 

Accrued interest

      (2,895 )      (7,034 ) 

Deferred revenue

      (2,449 )      5,434   

Accrued incentive plan expenses

      (6,592 )      (2,827 ) 

Property, franchise and other taxes payable

      (2,492 )      (2,838 ) 
  

 

 

    

 

 

  

Net cash provided by operating activities:

      49,485        47,034   
  

 

 

    

 

 

  

Cash flows from investing activities:

     

Acquisition of land, coal and other mineral rights

      (67,726 )      (84,822 ) 

Acquisition or construction of plant and equipment

      (10,128 )      (162 ) 

Acquisition of contracts- affiliate

      (48,881 )      —     

Proceeds from sale of assets

      —          100   
  

 

 

    

 

 

  

Net cash used in investing activities

      (126,735 )      (84,884 ) 
  

 

 

    

 

 

  

Cash flows from financing activities:

     

Proceeds from loans

      47,000        85,000   

Repayment of loans

      (15,191 )      (15,193 ) 

Costs associated with equity transactions

      —          (32 ) 

Distributions to partners

      (62,077 )      (58,423 ) 
  

 

 

    

 

 

  

Net cash provided by (used in) financing activities

      (30,268 )      11,352   
  

 

 

    

 

 

  

Net increase in cash and cash equivalents

      (107,518 )      (26,498 ) 

Cash and cash equivalents at beginning of period

      214,922        95,506   
  

 

 

    

 

 

  

Cash and cash equivalents at end of period

    $ 107,404      $ 69,008   
  

 

 

    

 

 

  

SUPPLEMENTAL INFORMATION:

     

Cash paid during the period for interest

    $ 16,292      $ 17,459   
  

 

 

    

 

 

  

Non-cash activities:

     

Obligation related to purchase of reserves and infrastructure

    $ —        $ 6,025   

NRP Reports 1st Quarter 2012 Results    Page 10 of  12

 

Natural Resource Partners L.P.

Consolidated Balance Sheets

(in thousands, except for unit information)

 

     March 31,
2012		     December 31,
2011		  
     (unaudited)        
ASSETS   

Current assets:

     

Cash and cash equivalents

    $ 107,404      $ 214,922   

Accounts receivable, net of allowance for doubtful accounts

      34,075        30,923   

Accounts receivable - affiliates

      13,040        10,138   

Other

      632        832   
  

 

 

    

 

 

  

Total current assets

      155,151        256,815   

Land

      24,534        24,534   

Plant and equipment, net

      54,416        46,185   

Coal and other mineral rights, net

      1,310,590        1,257,501   

Intangible assets, net

      74,209        75,164   

Loan financing costs, net

      4,707        4,846   

Long-term contracts - affiliate

      47,663        —     

Other assets, net

      604        604   
  

 

 

    

 

 

  

Total assets

    $ 1,671,874      $ 1,665,649   
  

 

 

    

 

 

  
LIABILITIES AND PARTNERS’ CAPITAL   

Current liabilities:

     

Accounts payable and accrued liabilities

    $ 2,685      $ 2,366   

Accounts payable - affiliates

      1,139        375   

Obligation related to acquisitions

      500        500   

Current portion of long-term debt

      52,230        30,801   

Accrued incentive plan expenses - current portion

      6,569        8,374   

Property, franchise and other taxes payable

      3,824        6,316   

Accrued interest

      7,866        10,761   
  

 

 

    

 

 

  

Total current liabilities

      74,813        59,493   

Deferred revenue

      109,373        113,303   

Accrued incentive plan expenses

      6,883        11,670   

Long-term debt

      846,648        836,268   

Partners’ capital:

     

Common units outstanding (106,027,836)

      621,220        629,253   

General partner’s interest

      10,354        10,517   

Non-controlling interest

      3,066        5,638   

Accumulated other comprehensive loss

      (483 )      (493 ) 
  

 

 

    

 

 

  

Total partners’ capital

      634,157        644,915   
  

 

 

    

 

 

  

Total liabilities and partners’ capital

    $ 1,671,874      $ 1,665,649   
  

 

 

    

 

 

  

NRP Reports 1st Quarter 2012 Results    Page 11 of  12

 

Natural Resource Partners L.P.

Reconciliation of GAAP Financial Measurements

to Non-GAAP Financial Measurements

(in thousands)

Reconciliation of GAAP “Net cash provided by operating activities”

to Non-GAAP “Distributable cash flow”

 

     Quarter Ended  
     Mar
2012		     Mar
2011		  
     (unaudited)  

Net cash provided by operating activities

    $ 49,485      $ 47,034   

Less scheduled principal payments

      (15,191 )      (15,193 ) 

Less reserves for future scheduled principal payments

      (13,058 )      (8,059 ) 

Add reserves used for scheduled principal payments

      15,191        15,193   
  

 

 

    

 

 

  

Distributable cash flow

    $ 36,427      $ 38,975   
  

 

 

    

 

 

  

NRP Reports 1st Quarter 2012 Results    Page 12 of   12

 

Reconciliation of GAAP “Net income attributable to the limited partners”

to Non-GAAP “Net income attributable to the limited partners before considering the impairment”

 

     Quarter Ended  
     Mar
2012		      Dec
2011		  
     (unaudited)  

Net income (loss) attributable to the limited partners

      

Net income (loss) as reported

    $ 51,309       $ (14,322 ) 

Impairments

    $ —         $ 70,404   

Net income before considering the impairment

    $ 51,309       $ 56,082   

Net income, before considering the impairment, attributable to:

      

General partner

    $ 1,026       $ 1,122   

Holders of the IDRs

    $ —         $ —     

Limited partners

    $ 50,283       $ 54,960   

Reconciliation of GAAP “Basic and diluted net income per unit”

to Non-GAAP “Net income per unit before considering the impairment”

  

  

     Quarter Ended  
     Mar
2012		      Dec
2011		  
     (unaudited)  

Net income (loss) per unit

      

Net income (loss) per unit as reported

    $ 0.47       $ (0.13 ) 

Adjustment for impairments

    $ —         $ 0.65   

Net income per limited partner unit, before considering the

    $ 0.47       $ 0.52   

Weighted number of units outstanding

      106,028         106,028   

-End-

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