Alpha Metallurgical Resources, Inc. reported a decline in financial performance for the three and nine months ended September 30, 2024, compared to the same periods in 2023. Total revenues for Q3 2024 were $671.9 million, down from $741.8 million in Q3 2023, marking a decrease of 9.4%. For the nine-month period, revenues fell to $2.34 billion from $2.51 billion, a decline of 6.8%. The decrease in revenue was primarily attributed to a reduction in metallurgical coal sales, which accounted for 94% of total sales in Q3 2024, compared to 89% in Q3 2023.
Total costs and expenses for Q3 2024 increased to $666.6 million from $624.7 million in Q3 2023, driven by higher costs of coal sales, which rose to $598.7 million, reflecting an 8.0% increase in average cost per ton due to inflationary pressures. As a result, income from operations plummeted to $5.3 million in Q3 2024, down from $117.2 million in the prior year. Net income for Q3 2024 was $3.8 million, a significant drop from $93.8 million in Q3 2023, leading to basic and diluted earnings per share of $0.29, compared to $6.88 and $6.65, respectively, in the previous year.
For the nine months ended September 30, 2024, net income was $189.7 million, down from $545.9 million in 2023. Adjusted EBITDA also saw a substantial decline, falling to $354.6 million from $766.8 million year-over-year. The company attributed these declines to lower coal margins and reduced sales realizations per ton.
On the operational front, Alpha Metallurgical continues to focus on its core business of metallurgical coal, with 21 active mines and 9 coal preparation facilities. The company has also entered into a three-year agreement for loading coal at a third-party terminal to mitigate shipment delays. Additionally, the company announced plans to idle the Checkmate Powellton mine effective December 6, 2024, due to decreased coal prices and economic conditions.
As of September 30, 2024, the company reported cash and cash equivalents of $484.6 million, a significant increase from $268.2 million at the end of 2023. The total stockholders’ equity rose to $1.65 billion from $1.57 billion at year-end 2023. The company maintains a senior secured asset-based revolving credit facility with a borrowing capacity of up to $155 million, with no amounts borrowed as of the reporting date.
About Alpha Metallurgical Resources, Inc.
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