Page 1

Peabody Reports Results For Quarter Ended June 30 , 2021 ST . LOUIS , July 29 , 2021 / PRNewswire / -- Peabody ( NYSE : BTU ) today announced its second quarter 2021 operating results , including revenues of $ 723.4 million ; loss from continuing operations , net of income taxes of $ 23.0 million ; net loss attributable to common stockholders of $ 28.6 million ; diluted loss per share from continuing operations of $ 0.26 ; and Adjusted EBITDAOF1 of $ 122.1 million . " We are optimistic about the future given strong coal market demand and pricing around the globe as economies continue to recover from the pandemic ; our assets are responding to the current market cycle and continue to benefit from cost improvement initiatives , " said Peabody President and Chief Executive Officer Jim Grech . " The company has taken a disciplined approach focusing on expanding margins , through ongoing operational improvements , cost controls and sales strategies , along with reducing debt , as we progress to position the company to be resilient in all market cycles . " Second Quarter 2021 Financial Results Second quarter revenues totaled $ 723.4 million compared to $ 626.7 million in the prior year primarily due to the impact of higher volumes and improved seaborne thermal pricing . Selling , general and administrative expenses decreased 15 percent from the prior year to $ 21.4 million as a result of the company's ongoing cost reduction efforts . Depreciation , depletion , and amortization ( DD & A ) declined 13 percent from the prior year to $ 77.1 million , primarily due to the impairment at the North Antelope Rochelle Mine recorded in Q2 2020 . Interest expense of $ 45.4 million increased $ 11.1 million over the prior year due to higher borrowing costs and amortization of debt issuance costs . Loss from continuing operations , net of income taxes totaled $ 23.0 million compared to $ 1.5 billion in the prior year , or $ 127.2 million excluding the $ 1.4 billion non - cash impairment of the North Antelope Rochelle Mine . Adjusted EBITDA totaled $ 122.1 million compared to $ 23.4 million in the prior year primarily due to higher realized seaborne thermal pricing , higher U.S. thermal volumes and improved costs across the platform . Segment Performance During the second quarter , the seaborne thermal segment shipped 4.1 million tons with exports of 2.0 million tons at an average realized price $ 73 per ton and 2.1 million tons sold under a long - term domestic contract . Despite a year - over - year reduction in sales volumes , unfavorable exchange rates , and higher fuel and royalty costs , seaborne thermal segment costs of $ 29.61 per ton were largely in line with the prior year reflecting the continued impact of cost reduction initiatives and product mix . The segment reported 37 percent Adjusted EBITDA margins and Adjusted EBITDA of $ 71.4 million . In the second quarter , Wilpinjong shipped 3.3 million tons at an average realized price of $ 38 per ton , which included 1.2 million tons of export sales at an average realized price of $ 63 per ton and 2.1 million tons of domestic sales at an average price of $ 22 per ton . Wilpinjong costs of $ 22 per ton were impacted by unfavorable exchange rates and higher fuel and royalty costs compared to the prior year . Operating cash flow was also impacted by timing of shipments , higher accounts receivable and higher inventory levels . Wilpinjong contributed approximately $ 52 million of Adjusted EBITDA , completed $ 7 million of capital expenditures and had $ 102 million of cash and cash equivalents as of June 30 , 2021 . The seaborne met segment shipped 1.4 million tons at an average realized price of $ 85.48 per short ton in the second quarter , with Metropolitan restarting longwall production late in the quarter . Total segment costs of $ 104.24 per ton decreased 14 % compared to the prior year as productivity improvements and increased sales volumes at the CMJV offset the impacts of unfavorable exchange rates , ramp up costs at Metropolitan and Shoal Creek idle costs . Seaborne met costs excluding Shoal Creek were approximately $ 95 per ton , favorable to $ 110 per ton in the prior year primarily due to fleet optimization and mine sequencing at the CMJV , which lowered costs by more than 20 % to $ 84 per ton . The segment reported an Adjusted EBITDA loss of $ 26.4 million . The PRB segment shipped 22.5 million tons at an average realized price of $ 11.06 per ton . PRB costs per ton decreased by two percent to $ 9.04 as higher fuel cost impact of $ 0.37 per ton was more than offset by 26 % higher volumes over the prior year . The segment reported 18 % Adjusted EBITDA margins and Adjusted EBITDA of $ 45.5 million . The other U.S. thermal segment shipped 3.9 million tons at an average realized price of $ 40.70 per ton . Cost per ton decreased 5 percent from the prior year to $ 29.57 due to pit sequencing and timing of longwall moves in the prior year . The segment reported 27 percent Adjusted EBITDA margins and Adjusted EBITDA of $ 44.3 million . Balance Sheet and Cash Flow Peabody ended the quarter with $ 561.9 million of cash , cash equivalents and restricted cash , a $ 61.8 million reduction over the prior quarter . The company retired approximately $ 84 million of debt in the quarter and reached agreements to retire an additional $ 50 million that will settle after June 30 , 2021 .