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Alliance Resource (ARLP) Q3 Earnings Miss, Revenues Up Y/Y

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Alliance Resource Partners, L.P. (ARLP - Free Report) reported third-quarter 2018 operating earnings of 55 cents per unit, missing the Zacks Consensus Estimate of 74 cents per unit by 25.7%. However, earnings were 5.8% higher than the year-ago quarter’s earnings of 52 cents.

Total Revenues

Total revenues in the reported quarter were $497.8 million, which lagged the Zacks Consensus Estimate of $505 million. Quarterly revenues reflect year-over-year growth of 9.8%.

The year-over-year improvement in the top line was on account of overall higher coal sale volume coupled with higher metallurgical coal realization price in the Appalachia. Further, increased revenues from transportation aided top-line performance.

Alliance Resource Partners, L.P. Price, Consensus and EPS Surprise

 

Segmental Performance

Illinois Basin: The segment reported total sales of $289.3 million, up 3.8% from the prior-year period. Sales volume of coal for the quarter under review went up by 5.4%. However, price per ton of coal was down by nearly 1.6% year over year.

Appalachia: The segment reported total sales of $168.4 million, up 10.9% from the prior-year period. Sales volume of coal for the quarter under review went up by 1.9%. Moreover, price per ton of coal was up by nearly 8.8% year over year.

Operational Update

In the reported quarter, Alliance Resource’s total operating expenses were $423.1 million, up 9.2% year over year.

Interest expenses were $9.8 million, down 8.7% year over year.

Financial Highlights

Cash and cash equivalents as of Sep 30, 2018, were $38.4 million compared with $6.8 million at the end of 2017.

Long-term debt as of Sep 30, 2018, was $388.2 million compared with $415.9 million at the end of 2017.

Cash provided from operating activities for the nine months ended Sep 30, 2018, was $579.3 million compared with $456.1 million in the year-ago period.

Guidance

Alliance Resource expects total 2018 net income of $415-$425 million and EBITDA of $730-$740 million.

The company provided 2018 capex of $245-$260 million for the coal business.

Zacks Rank

Alliance Resource currently has a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Upcoming Peer Releases

CONSOL Energy Inc. (CEIX - Free Report) , is expected to report third-quarter earnings on Nov 1. The Zacks Consensus Estimate for the company earnings is currently pegged at 53 cents per share.

Ramaco Resources, Inc. (METC - Free Report) , is expected to report third-quarter earnings on Nov 14. The Zacks Consensus Estimate for the company earnings is currently pegged at 30 cents.

Contura Energy, Inc. , is expected to report third-quarter earnings on Nov 24. The Zacks Consensus Estimate for the company’s earnings is currently pegged at $3.33 per share.

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