Arch Coal Inc. (NYSE:ACI) Q4 F2013 Results

Boston, MA 02/04/2014 (wallstreetpr) – Arch Coal Inc. (NYSE:ACI) has posted its fourth quarter for the financial year ending 2013 results that reflect the softer pricing environment that has eclipsed the metallurgical and thermal coals. The company recorded total revenue of $719.4 million with adjusted earnings before interest, taxes, depreciation, depletion and amortization of $38.4 million. ARCH Coal president and CEO was quick to point out that December start of long wall operations at their leer mine did enough to counterbalance the effect of rail service disruptions it had faced initially. The company chief exuded confidence that the company will do even better in the coming months as it strives to deliver quicker return of the $400 million it had given to the seaborne markets

Arch Coal Inc. Q4 results analysis

Despite positive returns on sales Arch Coal Inc. (NYSE:ACI) still recorded net losses totaling $371.2 million or $1.75 per diluted share. The net losses were followed by non-cash goodwill impairment charges of $265.4 million that did not have any impact on the company’s liquidity status. The company net loss stood at $95.1 million when excluding charges for good will impairment, early debt retirement and other one-time costs. This was a slight underperformance considering the company reported adjusted net losses of $88.7 million for the same quarter a year ago.

 Positives out of the Q4 results

Arch Coal Inc. (NYSE:ACI) despite recording a huge net loss recorded strong safety track record for the fourth quarter that involved cost reductions on capital spending across the organization. The company full year revenues totaled $3 billion on coal sales of an estimated 140 million tons. The company in F2013 generated adjusted EBITDA of $426 million compared to $688.5 million in F2012. The fourth quarter also saw the issuance of Arch Coal Inc. (NYSE:ACI) senior notes due in 2016 worth $600 million. The financing transactions that ACI undertook in the fourth quarter   are aimed at boosting its liquidity and eliminating debt maturities until 2018.

Arch Coal Inc. (NYSE:ACI) was able to deliver on its promise of ensuring cost containment and capital constraints despite facing a challenging working environment in the fourth quarter according to its Chief Executive officer. The mining company was able with success to cut down on its costs per ton for its key mining regions of Powder River basin and Appalachia. This resulted in the lowering of expenditures of up to $100 million compared to F2012 levels.

 

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