News Releases Details

View all news

Natural Resource Partners L.P. Reports Third Quarter 2011 Results

11/02/2011

Third Quarter 2011 Highlights:
-- Record revenues of $103.8 million, a 29% increase over 3Q2010
-- Net loss per unit of $0.27 after impairment of Gatling WV assets
-- Before considering the impairment, net income per unit of $0.57
-- Distributable cash flow of $71.9 million
-- Increased distribution by $0.01 to $0.55 per unit
-- Metallurgical production accounted for 35% of production and 45% of coal royalty revenues for the first nine months

HOUSTON, Nov. 2, 2011 /PRNewswire via COMTEX/ --

Natural Resource Partners L.P. (NYSE:NRP) today reported record revenues for the quarter ended September 30, 2011. Quarterly revenues increased 29% to a record $103.8 million over the third quarter 2010. In addition, distributable cash flow, a non-GAAP measure, increased 33% to $71.9 million. However, due to a $90.9 million impairment of assets related to NRP's Gatling WV property, NRP incurred a net loss attributable to the limited partners for the third quarter 2011 of $28.7 million or $0.27 per unit. Excluding the non-cash impairment, net income attributable to the limited partners rose 54% to $60.4 million, or $0.57 per unit. Reconciliations of all non-GAAP numbers are included in the tables at the end of the release.

(Logo: http://photos.prnewswire.com/prnh/20060109/NRPLOGO)

Gatling, LLC, the owner of the mine on the Gatling WV property, has indicated to NRP that it is no longer forecasting future production from the mine and is considering selling the mine. NRP and Gatling have amended the lease with respect to this property to provide that the existing minimum royalty balance of $24.1 million is non-recoupable, Gatling will pay $3.4 million in non-recoupable minimum royalties over the next two quarters, the minimums will be reduced after the first quarter of 2012, and Gatling will continue to maintain and ventilate the mine. This property has not been in production since April 2010 and NRP's 2011 guidance has never included any production or revenues for the property. As a result, NRP does not believe that the non-cash impairment will materially impact its future revenues or distributable cash flow, and has presented earnings in this release excluding the impairment to better reflect the current status of its business. The impairment had the following impact on the quarter:

  • $90.9 million increase in operating costs and expenses
  • $89.1 million decrease in net income attributable to the limited partners
  • $0.84 per unit decrease in net income per limited partner unit

"NRP continues to realize record revenues due to increased production in coal, oil and gas and aggregates; improved coal royalty revenues per ton; and increased throughput on the infrastructure assets," said Nick Carter, President and Chief Operating Officer. "In 2011, our large percentage of metallurgical production has benefited NRP's coal royalty revenue as metallurgical coal prices, while down slightly from earlier in the year, are still strong. We are starting to see some of the benefits from our recent coal acquisitions in the Illinois Basin and increased revenues on the BRP assets acquired last year. In addition, we are beginning to see a slight improvement in the economy regarding our aggregates. While we did take an impairment charge this quarter regarding the Gatling WV property, this non-cash charge will not impact the ability of NRP to pay its distribution."

Highlights

Quarter Ended


Nine Months Ended


Sep

Sep

%


Sep

Sep

%


2011

2010

Change


2011

2010

Change


(in thousands except per unit, per ton and %)

Revenues








Total revenues

$ 103,771

$ 80,752

29%


$ 280,032

$ 223,859

25%

Coal production

13,625

12,370

10%


37,109

34,939

6%

Coal royalty revenues

$ 76,430

$ 60,142

27%


$ 211,583

$ 165,135

28%

Average coal royalty revenue per ton

$ 5.61

$ 4.86

15%


$ 5.70

$ 4.73

21%

Revenues other than coal royalties

$ 27,341

$ 20,610

33%


$ 68,449

$ 58,724

17%









Net Income (loss) as reported








Net income (loss) to limited partners

$ (28,700)

$ 39,350

-173%


$ 66,981

$ 84,269

-21%

Net income (loss) per unit

$ (0.27)

$ 0.51

-153%


$ 0.63

$ 1.14

-45%

Average units outstanding

106,028

77,896

36%


106,028

73,792

44%









Net income before considering the impairment (1)








Net income to limited partners

60,413

39,350

54%


156,094

84,269

85%

Net income per unit

$ 0.57

$ 0.51

13%


$ 1.47

$ 1.14

29%









Distributable cash flow

$ 71,942

$ 54,227

33%


$ 194,863

$ 151,841

28%

(1) See Non-GAAP reconciliation








Revenues

Third Quarter

Increases in coal production, average coal royalty revenue per ton and additional throughput on infrastructure assets drove total revenues to a record $103.8 million in the third quarter of 2011, a 29% increase over the third quarter 2010. Coal production increased 10% over the third quarter 2010 to 13.6 million tons, levels not seen since 2008. A significant portion of the increase was due to sales of Illinois Basin coal that were deferred from the second quarter 2011 due to river flooding. These increased sales, coupled with a 15% increase in average coal royalty revenue per ton, caused coal royalty revenues to increase 27% to a record quarterly amount of $76.4 million.

Revenues other than coal royalty increased 33% over the third quarter 2010 to $27.3 million due mainly to increased oil and gas revenues from BRP, increased throughput volumes on both the coal processing and transportation assets, additional volumes on overriding royalties and a gain on the sale of assets of $1.2 million that is included in other income. These were modestly offset by a reduction in minimums recognized as royalty due to a $3.1 million minimum included in 2010 that, while received in 2011, is now shown as recoupable.

Nine Months

Total revenues for the first nine months increased 25% over the 2010 period due to significant increases in nearly all categories. Coal royalty revenues increased 28% predominantly due to a 5% increase in Appalachian production and a 35% increase in production in the Illinois Basin, as well as a 21% increase in the coal royalty revenue per ton over the first nine months of 2010 to $5.70 per ton. While NRP saw increases in nearly all regions, the majority of the increase in coal royalty revenue per ton was due to the higher proportion of metallurgical coal sold in 2011 at much higher sales prices than in 2010. Metallurgical coal accounted for 35% of NRP's production and 45% of its coal royalty revenues for the first nine months of 2011 compared to 33% of production and 39% of coal royalty revenues in 2010.

Revenues other than coal royalty revenues increased $9.7 million from 2010 to $68.4 million due to increases in all categories except minimums recognized as royalty. Following is a discussion of the components generating the increases:

  • Oil and gas revenues increased $5.8 million primarily due to increased production and additional leases associated with the BRP assets.
  • Infrastructure assets increased $5.1 million due to additional throughput on both the coal processing and transportation assets.
  • Aggregate revenues increased $2.3 million due to both increases in production on historical assets and new production on assets acquired in the last year including the BRP assets.
  • Minimums recognized as revenue decreased $6.6 million due to $9.3 million of minimums recognized in 2010 on the Hillsboro property not recognized as revenue in 2011.

Operating Expenses

Third Quarter

Total operating costs and expenses for the third quarter 2011 totaled $120.3 million. Total operating costs and expenses for the third quarter totaled $29.4 million before considering the impairment charge of $90.9 million, down slightly from the $30.4 million reported for the third quarter of 2010. Higher depreciation, depletion and amortization expenses associated with increased production, was more than offset by lower general and administrative expenses and lower taxes.

Nine Months

Total operating costs and expenses for the first nine months of 2011 were $175.9 million. Total operating costs and expenses, before considering the impairment, for the first nine months of 2011 increased modestly over the 2010 nine month period to $84.9 million from $80.7 million due to increases in non-cash depreciation, depletion and amortization as a result of increases in production and throughput on assets.

Net income (loss)

Third Quarter

Net loss to the limited partners totaled $28.7 million. Net income to the limited partners, before considering the impairment charge, increased $21.1 million, or 54%, to $60.4 million in the third quarter 2011. The increase was solely related to increased revenues.

Net loss per unit was $0.27. Before considering the impairment, net income per unit increased 12% to $0.57 per unit despite a 36% increase in the average number of units outstanding in the third quarter 2011 versus the same period last year.

Nine Months

Net income attributable to the limited partners for the first nine months of 2011 was $67.0 million. Before considering the impairment, net income to the limited partners increased $71.8 million, or 85%, for the first nine months of 2011 when compared to the same period in 2010, predominantly due to improved revenues of $56.2 million. Also included is a $26.0 million improvement due to the elimination of the incentive distribution rights in September 2010.

Net income per unit for the 2011 nine month period was $0.63. Net income per unit, before considering the impairment, for the first nine months rose by 29%, or $0.33 per unit, to $1.47 per unit, despite a 44% increase in the number of units outstanding during the respective time periods.

Distributable cash flow

Third Quarter

Distributable cash flow rose 33% over the third quarter of 2010 to $71.9 million for the third quarter of 2011. The $17.7 million improvement was due to increases in revenue and decreases in general and administrative expenses offset by decreases in cash flow from operations due to balance sheet related items.

Nine Months

Distributable cash flow increased $43.0 million, or 28%, to $194.9 million for the first nine months of 2011 versus the same period last year due improved revenues.

Third Quarter 2011 compared to Second Quarter 2011

Highlights

3Q11

2Q11

% Change


(in thousands, except per ton and per unit)


Total revenues

$ 103,771

$ 91,409

14%

Coal production

13,625

11,538

18%

Coal royalty revenues

$ 76,430

$ 69,788

10%

Average coal royalty revenue per ton

$ 5.61

$ 6.05

-7%

Revenues other than coal royalty

$ 27,341

$ 21,621

26%

Net income (loss) to limited partners

$ (28,700)

$ 51,305

-156%

Net income to the limited partners, before considering the impairment(1)

$ 60,413

$ 51,305

18%

Net income (loss) per unit

$ (0.27)

$ 0.48

-156%

Net income per unit, before considering the impairment(1)

$ 0.57

$ 0.48

19%

Average units outstanding

106,028

106,028

0%

Distributable cash flow

$ 71,942

$ 83,946

-14%

(1) See Non-GAAP reconciliation




Revenues

Total revenues for the third quarter increased 14% over the second quarter 2011 to $103.8 million predominantly due to increases in coal royalty revenues and oil and gas revenue. Coal royalty revenues increased $6.6 million or 10% to $76.4 million due to an 18% increase in coal production. Sales in the Illinois Basin rose due to reductions in inventory at the mines that had increased in the second quarter due to river flooding. These sales more than offset the decrease in production in the Appalachian Basin. Due to the increase in production in both the Illinois Basin and the Northern Powder River Basin, which both receive lower coal royalty revenue per ton than Appalachia, the average coal royalty revenue per ton decreased 7% to $5.61. Revenues other than coal royalty increased 26% to $27.3 million mainly due to increases in production for oil and gas revenues and increases in throughput on the coal processing and transportation assets.

Operating Expenses

Total operating costs and expenses for the third quarter of 2011 totaled $120.3 million. Before considering the impairment, total operating costs and expenses, rose $2.8 million over the second quarter mainly due to increases in depreciation, depletion and amortization as a result of increased production in the third quarter over the second quarter.

Net income (loss)

Net loss to the limited partners for the third quarter 2011 totaled $28.7 million. Net income to the limited partners, before considering the impairment, improved $9.1 million to $60.4 million in the third quarter over the second quarter due to improved revenues during the third quarter. Net income per unit, before considering the impairment, was $0.57 for the third quarter of 2011 compared to $0.48 per unit for the second quarter.

Distributable cash flow

Distributable cash flow decreased $12.0 million, or 14%, to $71.9 million due to $12.8 million in additional interest payments made in the third quarter over those made in the second quarter.

Market Outlook

"We continue to see the benefits of the strong group of lessees we have who continue to do an excellent job of marketing coal into all market situations at attractive prices. At this time the metallurgical coal markets are unsettled, and it is expected that metallurgical prices will decrease somewhat from the current levels, as China is attempting to avoid the higher priced seaborne market but can only do so for a limited time. The utility market is essentially the same with the ongoing recession causing demand for electricity to be at lower levels and low natural gas prices have kept fuel switching at a high level. However, utility stockpiles are at the lowest level we have seen since 2008, many analysts believe we have nearly maxed out the fuel switching capability of the grids, and Europe and Asia are using more coal to substitute for the shut-in nuclear plants. We continue to monitor the markets very closely through third parties and our lessees, and we will update you if we become aware of any material market changes that would impact NRP," said Nick Carter.

Acquisitions and Liquidity

In the third quarter 2011, NRP invested $8.2 million in an acquisition of coal reserves located in Pennsylvania and Illinois. In addition, NRP funded $3.6 million associated with remaining obligations on two previously announced acquisitions. All payments in the third quarter were funded with the excess cash proceeds from the 2011 private placements.

As of September 30, 2011, NRP had $300 million in available capacity under its credit facility and approximately $150 million in cash. At the end of the third quarter, NRP's cash included $40.9 million from the second quarter private placements of senior notes that has not been invested in acquisitions. In addition, NRP completed the final previously announced private placement of senior notes in early October for the remaining $50 million. The majority of these proceeds, or $80 million, will be used to fund the Hillsboro acquisitions in 2012. The $40 million acquisition of Hillsboro reserves originally scheduled for the fourth quarter of 2011 has now been delayed until 2012.

Issues at Gatling Ohio Mine

Following the end of the third quarter, NRP learned that a Cline affiliate, Gatling Ohio, LLC, has recently encountered adverse geologic conditions at its mine in Meigs County, Ohio and has temporarily idled one of its two continuous miner units operating in the mine. This mine represents less than 1% of NRP's current revenues, but the net book value of NRP's assets at the mine was $93.6 million as of the end of the third quarter.

Guidance Update

Following the strong third quarter NRP, now expects that coal production will be near the top end of the previously announced range of 42-50 million tons, while all other metrics, when excluding the third quarter impairment, will exceed the upper end of the previously announced ranges.

Distributions

As reported on October 21, 2011, the Board of Directors of NRP's general partner declared a quarterly distribution of $0.55 per unit, an increase of 1.9 percent over the second quarter 2011 and the third quarter 2010.

Company Profile

Natural Resource Partners L.P. is a master limited partnership headquartered in Houston, TX, with its operations headquarters in Huntington, WV. NRP is principally engaged in the business of owning and managing mineral reserve properties. NRP primarily owns coal, aggregate and oil and gas reserves across the United States that generate royalty income for the partnership.

For additional information, please contact Kathy H. Roberts at 713-751-7555 or kroberts@nrplp.com. Further information about NRP is available on the partnership's website at http://www.nrplp.com.

Disclosure of Non-GAAP Financial Measures

Distributable cash flow represents cash flow from operations less actual principal payments and cash reserves set aside for scheduled principal payments on the senior notes. Distributable cash flow is a "non-GAAP financial measure" that is presented because management believes it is a useful adjunct to net cash provided by operating activities under GAAP. Distributable cash flow is a significant liquidity metric that is an indicator of NRP's ability to generate cash flows at a level that can sustain or support an increase in quarterly cash distributions paid to its partners. Distributable cash flow is also the quantitative standard used throughout the investment community with respect to publicly traded partnerships. Distributable cash flow is not a measure of financial performance under GAAP and should not be considered as an alternative to cash flows from operating, investing or financing activities. A reconciliation of distributable cash flow to net cash provided by operating activities is included in the tables attached to this release. Distributable cash flow may not be calculated the same for NRP as other companies.

Forward-Looking Statements

This press release may include "forward-looking statements" as defined by the Securities and Exchange Commission. Such statements include the current coal market conditions and borrowing capacity. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the partnership expects, believes or anticipates will or may occur in the future are forward-looking statements. These statements are based on certain assumptions made by the partnership based on its experience and perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the partnership. These risks include, but are not limited to, decreases in demand for coal; changes in operating conditions and costs; production cuts by our lessees; commodity prices; unanticipated geologic problems; changes in the legislative or regulatory environment and other factors detailed in Natural Resource Partners' Securities and Exchange Commission filings. Natural Resource Partners L.P. has no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

11-22 -Financial statements follow-

Natural Resource Partners L.P.

Operating Statistics

(in thousands except per ton data)





Quarter Ended


Nine Months Ended





Sep


Sep


Sep


Sep





2011


2010


2011


2010





(unaudited)


(unaudited)


(unaudited)


(unaudited)

Coal Royalties:








Coal royalty revenues:









Appalachia










Northern

$ 4,731


$ 4,883


$ 14,592


$ 14,224



Central

50,595


38,418


151,156


108,751



Southern

1,554


5,520


9,742


15,795




Total Appalachia

$ 56,880


$ 48,821


$ 175,490


$ 138,770


Illinois Basin

15,767


9,278


29,598


20,307


Northern Powder River Basin

3,622


2,033


6,135


6,048


Gulf Coast Lignite

161


10


360


10

Total



$ 76,430


$ 60,142


$ 211,583


$ 165,135

Coal royalty production (tons):









Appalachia










Northern

1,156


1,177


3,530


3,676



Central

7,406


7,051


22,756


20,417



Southern

290


763


1,410


2,297




Total Appalachia

8,852


8,991


27,696


26,390


Illinois Basin

3,574


2,389


7,118


5,287


Northern Powder River Basin

1,119


987


2,024


3,259


Gulf Coast Lignite

80


3


271


3

Total



13,625


12,370


37,109


34,939

Average royalty revenue per ton:









Appalachia










Northern

$ 4.09


$ 4.15


$ 4.13


$ 3.87



Central

6.83


5.45


6.64


5.33



Southern

5.36


7.23


6.91


6.88




Total Appalachia

6.43


5.43


6.34


5.26


Illinois Basin

4.41


3.88


4.16


3.84


Northern Powder River Basin

3.24


2.06


3.03


1.86


Gulf Coast Lignite

2.01


3.33


1.33


3.33

Combined average royalty









revenue per ton

$ 5.61


$ 4.86


$ 5.70


$ 4.73

Aggregates:








Royalty revenues

$ 2,099


$ 1,606


$ 5,030


$ 3,486

Aggregate royalty bonus

-


-


94


(639)

Production


1,682


1,193


4,618


2,576

Average base royalty per ton

$ 1.25


$ 1.35


$ 1.09


$ 1.35

Oil and gas:








Royalty revenues

$ 5,059


$ 1,013


$ 10,047


$ 4,200

Natural Resource Partners L.P.

Consolidated Statements of Income

(in thousands, except per unit data)














Quarter Ended


Nine Months Ended




Sep


Sep


Sep


Sep




2011


2010


2011


2010




(unaudited)


(unaudited)


(unaudited)


(unaudited)

Revenues:









Coal royalties

$ 76,430


$ 60,142


$ 211,583


$ 165,135


Aggregate royalties

2,099


1,606


5,124


2,847


Coal processing fees

3,967


2,343


10,229


6,680


Transportation fees

4,765


4,285


12,608


11,103


Oil and gas royalties

5,059


1,013


10,047


4,200


Property taxes

2,974


3,552


9,563


8,985


Minimums recognized as revenue

1,582


3,782


3,930


10,574


Override royalties

4,131


2,625


10,666


8,749


Other

2,764


1,404


6,282


5,586



Total revenues

103,771


80,752


280,032


223,859

Operating costs and expenses:









Depreciation, depletion and amortization

19,153


16,195


49,641


44,048


Asset impairment

90,932


-


90,932


-


General and administrative

5,521


8,761


22,156


22,103


Property, franchise and other taxes

3,915


4,580


10,918


11,812


Transportation costs

540


614


1,531


1,436


Coal royalty and override payments

233


258


700


1,251



Total operating costs and expenses

120,294


30,408


175,878


80,650

Income (loss) from operations

(16,523)


50,344


104,154


143,209

Other income (expense)









Interest expense

(12,779)


(10,204)


(35,795)


(31,279)


Interest income

16


13


40


25

Income (loss) before non-controlling interest

$ (29,286)


$ 40,153


$ 68,399


$ 111,955


Less non-controlling interest

-


-


(51)


-

Net income (loss)

$ (29,286)


$ 40,153


$ 68,348


$ 111,955

Net income (loss) attributable to:









General partner

$ (586)


$ 803


$ 1,367


$ 1,720


Holders of incentive distribution rights

$ -


$ -


$ -


$ 25,966


Limited partners

$ (28,700)


$ 39,350


$ 66,981


$ 84,269











Basic and diluted net income (loss) per









limited partner unit:

$ (0.27)


$ 0.51


$ 0.63


$ 1.14











Weighted average number of units outstanding:

106,028


77,896


106,028


73,792

Natural Resource Partners L.P.

Consolidated Statements of Cash Flow

(in thousands, except per unit data)





Quarter Ended


Nine Months Ended





Sep


Sep


Sep


Sep





2011


2010


2011


2010





(unaudited)


(unaudited)


(unaudited)


(unaudited)

Cash flows from operating activities:









Net income (loss)

$ (29,286)


$ 40,153


$ 68,348


$ 111,955


Adjustments to reconcile net income (loss) to










net cash provided by operating activities:










Depreciation, depletion and amortization

19,153


16,195


49,641


44,048



Gain on sale of assets

(1,058)




(1,058)





Asset Impairment

90,932




90,932





Non-cash interest charge, net

225


124


493


415



Non-controlling interest

-




51


-


Change in operating assets and liabilities:










Accounts receivable

(10,439)


(256)


(12,770)


(5,341)



Other assets

24


502


556


620



Accounts payable and accrued liabilities

698


205


213


303



Accrued interest

(3,578)


(7,136)


(1,710)


(7,458)



Deferred revenue

12,869


8,613


26,067


29,254



Accrued incentive plan expenses

1,116


3,765


(14)


2,425



Property, franchise and other taxes payable

(1,014)


(58)


(2,427)


(561)




Net cash provided by operating activities:

79,642


62,107


218,322


175,660

Cash flows from investing activities:










Acquisition of land, coal and other mineral rights

(8,241)


(365)


(107,509)


(111,176)



Acquisition or construction of plant and equipment

-


(2,218)


(325)


(4,320)



Disposition of assets

4,500


408


5,500


808




Net cash used in investing activities

(3,741)


(2,175)


(102,334)


(114,688)

Cash flows from financing activities:










Proceeds from loans

-


4,000


335,000


85,000



Debt issuance costs

(1,722)


-


(2,774)


-



Proceeds from issuance of units

-


-


-


110,436



Repayment of loans

(7,693)


(7,692)


(210,519)


(106,234)



Capital contribution by general partner

-


-


-


2,350



Retirement of obligation related to acquisitions

(3,600)


(6,200)


(7,625)


(9,169)



Costs associated with issuance of units

(1)


-


(141)


(152)



Costs associated with the elimination of the IDRs



(2,170)




(2,170)



Distributions to partners

(58,478)


(54,040)


(175,323)


(151,427)




Net cash provided by (used in) financing activities

(71,494)


(66,102)


(61,382)


(71,366)

Net increase or (decrease) in cash and cash equivalents

4,407


(6,170)


54,606


(10,394)

Cash and cash equivalents at beginning of period

145,705


78,410


95,506


82,634

Cash and cash equivalents at end of period

$ 150,112


$ 72,240


$ 150,112


$ 72,240

SUPPLEMENTAL INFORMATION:










Cash paid during the period for interest

$ 16,215


$ 17,222


$ 37,074


$ 38,292


Non-cash activities:










Mineral rights to be received

$ -


$ -


$ -


$ 13,249



Liability associated with acquisitions



$ 1,268




$ 1,268



Non-controlling interest

$ -


$ -


$ 373


(7,355)



Obligation related to purchase of reserves and











infrastructure

$ -


$ -


$ 4,100


$ 6,200

Natural Resource Partners L.P.

Consolidated Balance Sheets

(in thousands, except for unit information)







ASSETS




September 30,


December 31,




2011


2010




(unaudited)


(audited)

Current assets:





Cash and cash equivalents

$ 150,112


$ 95,506


Accounts receivable, net of allowance for doubtful accounts

34,538


26,195


Accounts receivable - affiliates

12,342


7,915


Other

391


910



Total current assets

197,383


130,526

Land


24,533


24,543

Plant and equipment, net

49,228


62,348

Coal and other mineral rights, net

1,289,874


1,281,636

Intangible assets, net

109,885


161,931

Loan financing costs, net

4,782


2,436

Other assets, net

579


616



Total assets

$ 1,676,264


$ 1,664,036







LIABILITIES AND PARTNERS' CAPITAL







Current liabilities:





Accounts payable and accrued liabilities

$ 2,100


$ 1,388


Accounts payable - affiliates

-


499


Obligation related to acquisitions

500


-


Current portion of long-term debt

30,801


31,518


Accrued incentive plan expenses - current portion

7,690


6,788


Property, franchise and other taxes payable

4,499


6,926


Accrued interest

8,101


9,811



Total current liabilities

53,691


56,930

Deferred revenue

108,093


109,509

Accrued incentive plan expenses

10,431


11,347

Long-term debt

786,268


661,070

Partners' capital:





Common units outstanding (106,027,836)

701,602


806,529


General partner's interest

11,995


14,132


Non-controlling interest

4,691


5,065


Accumulated other comprehensive loss

(507)


(546)



Total partners' capital

717,781


825,180



Total liabilities and partners' capital

$ 1,676,264


$ 1,664,036

Natural Resource Partners L.P.

Reconciliation of GAAP Financial Measurements

to Non-GAAP Financial Measurements

(in thousands)









Reconciliation of GAAP "Net cash provided by operating activities"

to Non-GAAP "Distributable cash flow"










Quarter Ended


Nine Months Ended


Sep


Sep


Sep


Sep


2011


2010


2011


2010


(unaudited)


(unaudited)









Net cash provided by operating activities

$ 79,642


$ 62,107


$ 218,322


$ 175,660

Less scheduled principal payments

(7,692)


(7,692)


(31,518)


(32,234)

Less reserves for future scheduled principal payments

(7,700)


(7,880)


(23,459)


(23,819)

Add reserves used for scheduled principal payments

7,692


7,692


31,518


32,234

Distributable cash flow

$ 71,942


$ 54,227


$ 194,863


$ 151,841

Reconciliation of GAAP "Total operating costs and expenses"

to Non-GAAP "Total operating costs and expenses before considering the impairment"










Quarter Ended


Nine Months Ended


Sep


Sep


Sep


Sep


2011


2010


2011


2010


(unaudited)


(unaudited)

Operating costs








Total operating costs as reported

120,294


30,408


175,878


80,650

Impairments

(90,932)


-


(90,932)


-

Total operating costs before considering the impairment

29,362


30,408


84,946


80,650









Reconciliation of GAAP "Net income attributable to the limited partners"

to Non-GAAP "Net income attributable to the limited partners before considering the impairment"










Quarter Ended


Nine Months Ended


Sep


Sep


Sep


Sep


2011


2010


2011


2010


(unaudited)


(unaudited)

Net income (loss) attributable to the limited partners








Net income (loss) as reported

(29,286)


40,153


68,348


111,955

Impairments

90,932


-


90,932


-

Net income before considering the impairment

61,646


40,153


159,280


111,955

Net income, before considering the impairment, attributable to:








General partner

1,233


803


3,186


1,720

Holders of the IDRs







25,966

Limited partners

60,413


39,350


156,094


84,269









Reconciliation of GAAP "Basic and diluted net income per unit"

to Non-GAAP "Net income per unit before considering the impairment"










Quarter Ended


Nine Months Ended


Sep


Sep


Sep


Sep


2011


2010


2011


2010


(unaudited)


(unaudited)

Net income (loss) per unit








Net income (loss) per unit as reported

$ (0.27)


$ 0.51


$ 0.63


$ 1.14

Adjustment for impairments

$ 0.84




$ 0.84



Net income per limited partner unit, before considering the impairment

$ 0.57


$ 0.51


$ 1.47


$ 1.14









Weighted number of units outstanding

106,028


77,896


106,028


73,792

SOURCE Natural Resource Partners L.P.

Multimedia Files:

View all news