Reports first quarter net income of $127.0 million, or $9.59 per diluted share Generates Adjusted EBITDA of $189.6 million for the quarter BRISTOL, Tenn., May 6, 2024 /PRNewswire/ -- Alpha Metallurgical Resources, Inc. (NYSE:AMR), a leading U.S. supplier of metallurgical products for the steel industry, today reported financial results for the first quarter ending March 31, 2024. (millions, except per share) Three months ended Mar. 31, 2024 Dec. 31, 2023 Mar. 31, 2023 Net income $127.0 $176.0 $270.8 Net income per diluted share $9.59 $12.88 $17.01 Adjusted EBITDA(1) $189.6 $266.3 $354.4 Operating cash flow $196.1 $199.4 $177.4 Capital expenditures ($63.6) ($61.5) ($74.2) Tons of coal sold 4.4 4.6 3.9 __________________________________ 1. These are non-GAAP financial measures. A reconciliation of Net Income to Adjusted EBITDA is included in tables accompanying the financial schedules. "Despite challenges and softening coal market conditions toward the end of Q1, we are reporting another solid quarter of performance thanks to the diligence of our teams throughout the organization," said Andy Eidson, Alpha's chief executive officer. "While further market deterioration has occurred in the weeks since quarter-close, Alpha remains well positioned to continue adapting to and weathering these market realities and the resulting volatility." Financial Performance Alpha reported net income of $127.0 million, or $9.59 per diluted share, for the first quarter 2024, as compared to net income of $176.0 million, or $12.88 per diluted share, in the fourth quarter 2023. Total Adjusted EBITDA was $189.6 million for the first quarter, compared to $266.3 million in the fourth quarter 2023.  Coal Revenues (millions) Three months ended Mar. 31, 2024 Dec. 31, 2023 Met Segment $861.3 $954.2 Met Segment (excl. freight & handling)(1) $727.6 $834.6 Tons Sold (millions) Three months ended Mar. 31, 2024 Dec. 31, 2023 Met Segment 4.4 4.5 __________________________________ 1. Represents Non-GAAP coal revenues which is defined and reconciled under "Non-GAAP Financial Measures" and "Results of Operations." Coal Sales Realization(1) (per ton) Three months ended Mar. 31, 2024 Dec. 31, 2023 Met Segment $166.68 $183.76 __________________________________ 1. Represents Non-GAAP coal sales realization which is defined and reconciled under "Non-GAAP Financial Measures" and "Results of Operations." First quarter net realized pricing for the Met segment was $166.68 per ton. The table below provides a breakdown of our Met segment coal sold in the first quarter by pricing mechanism. (in millions, except per ton data) Met Segment Sales Three months ended Mar. 31, 2024 Tons Sold Coal Revenues Realization/ton(1) % of Met Tons Sold Export - Other Pricing Mechanisms 2.0 $344.6 $172.24 51 % Domestic 0.9 $149.6 $164.89 23 % Export - Australian Indexed 1.1 $201.4 $193.70 26 % Total Met Coal Revenues 4.0 $695.6 $176.20 100 % Thermal Coal Revenues 0.4 $32.0 $76.53 Total Met Segment Coal Revenues (excl. freight & handling)(1) 4.4 $727.6 $166.68 __________________________________ 1. Represents Non-GAAP coal sales realization which is defined and reconciled under "Non-GAAP Financial Measures" and "Results of Operations." Cost of Coal Sales (in millions, except per ton data) Three months ended Mar. 31, 2024 Dec. 31, 2023 (2) Met Segment $648.3 $662.5 Met Segment (excl. freight & handling/idle)(1) $504.8 $540.5 (per ton) Met Segment(1) $115.65 $119.00 __________________________________ 1. Represents Non-GAAP cost of coal sales and Non-GAAP cost of coal sales per ton which is defined and reconciled under "Non-GAAP Financial Measures" and "Results of Operations." 2. For comparability purposes, certain immaterial segment information for the three months ended December 31, 2023 has been recast to conform to the current year presentation. Alpha's Met segment cost of coal sales decreased to an average of $115.65 per ton in the first quarter, compared to $119.00 per ton in the fourth quarter 2023. Liquidity and Capital Resources Cash provided by operating activities in the first quarter decreased to $196.1 million as compared to $199.4 million in the fourth quarter 2023. Capital expenditures for the first quarter were $63.6 million compared to $61.5 million for the fourth quarter 2023. As of March 31, 2024, the company had total liquidity of $288.1 million, including cash and cash equivalents of $269.4 million and $93.7 million of unused availability under the ABL, partially offset by a minimum required liquidity of $75.0 million as required by the ABL. As of March 31, 2024, the company had no borrowings and $61.3 million in letters of credit outstanding under the ABL. Total long-term debt, including the current portion of long-term debt as of March 31, 2024, was $9.4 million and consisted primarily of equipment financing obligations. Share Repurchase Program As previously announced, Alpha's board of directors authorized a share repurchase program allowing for the expenditure of up to $1.5 billion for the repurchase of the company's common stock. As of April 30, 2024, the company has acquired approximately 6.6 million shares of common stock at a cost of approximately $1.1 billion, or approximately $165.74 per share. The number of common stock shares outstanding as of April 30, 2024 was 13,007,215. The outstanding share count does not include the potentially dilutive effect of unvested equity awards. The timing and amount of share repurchases will continue to be determined by the company's management based on its evaluation of market conditions, the trading price of the stock, applicable legal requirements, compliance with the provisions of the company's debt agreements, and other factors. Results of Alpha's 2024 Annual Meeting of Stockholders The company's annual meeting of stockholders was held on May 2, 2024, and stockholders elected all seven members of Alpha's board of directors to one-year terms. Stockholders also approved an amendment to the company's certificate of incorporation that replaces stockholder supermajority voting requirements with majority voting requirements. The complete voting results from the annual meeting have been filed with the Securities and Exchange Commission on Form 8-K.  2024 Guidance Adjustments and Performance Update Alpha is increasing its full-year guidance for idle operations expense to between $25 million and $33 million, up from the previously announced range of $18 million to $28 million. Additionally, the company is reducing its 2024 tax rate guidance to a range of 10% to 15%, down from the prior range of 12% to 17%. As of April 24, 2024, at the midpoint of guidance, Alpha has committed and priced approximately 49% of its metallurgical coal for the year at an average price of $168.26 per ton and 100% of thermal coal for the year at an average expected price of $76.10 per ton. 2024 Guidance in millions of tons Low High Metallurgical 15.5 16.5 Thermal 0.9 1.3 Met Segment - Total Shipments 16.4 17.8 Committed/Priced1,2,3 Committed Average Price Metallurgical - Domestic $161.41 Metallurgical - Export $175.50 Metallurgical Total 49 % $168.26 Thermal 100 % $76.10 Met Segment 53 % $155.48 Committed/Unpriced1,3 Committed Metallurgical Total 49 % Thermal — % Met Segment 46 % Costs per ton4 Low High Met Segment $110.00 $116.00 In millions (except taxes) Low High SG&A5 $60 $66 Idle Operations Expense $25 $33 Net Cash Interest Income $2 $8 DD&A $140 $160 Capital Expenditures $210 $240 Capital Contributions to Equity Affiliates6 $40 $50 Tax Rate 10 % 15 % Notes:  1. Based on committed and priced coal shipments as of April 24, 2024. Committed percentage based on the midpoint of shipment guidance range. 2. Actual average per-ton realizations on committed and priced tons recognized in future periods may vary based on actual freight expense in future periods relative to assumed freight expense embedded in projected average per-ton realizations. 3. Includes estimates of future coal shipments based upon contract terms and anticipated delivery schedules. Actual coal shipments may vary from these estimates. 4. Note: The Company is unable to present a quantitative reconciliation of its forward-looking non-GAAP cost of coal sales per ton sold financial measures to the most directly comparable GAAP measures without unreasonable efforts due to the inherent difficulty in forecasting and quantifying with reasonable accuracy significant items required for the reconciliation. The most directly comparable GAAP measure, GAAP cost of sales, is not accessible without unreasonable efforts on a forward-looking basis. The reconciling items include freight and handling costs, which are a component of GAAP cost of sales. Management is unable to predict without unreasonable efforts freight and handling costs due to uncertainty as to the end market and FOB point for uncommitted sales volumes and the final shipping point for export shipments. These amounts have varied historically and may continue to vary significantly from quarter to quarter and material changes to these items could have a significant effect on our future GAAP results. 5. Excludes expenses related to non-cash stock compensation and non-recurring expenses. 6. Includes contributions to fund normal operations at our DTA export facility and expected capital investments related ...