Alliance Resource Partners, L.P. (NASDAQ: ARLP) today reported financial results for the quarter ended June 30, 2012 (the "2012 Quarter"). Led by record coal sales volumes and pricing, revenues increased 15.7% to a record $529.9 million and EBITDA climbed 6.0% to a record $155.5 million, each as compared to the quarter ended June 30, 2011 (the "2011 Quarter”). Compared to the 2011 Quarter, net income declined 2.8% to $95.5 million, or $1.83 per basic and diluted limited partner unit due to anticipated increases in depreciation, depletion and amortization expense and the pass through of losses related to investments in White Oak Resources, LLC (“White Oak”). (For a definition of EBITDA and related reconciliations to comparable GAAP financial measures, please see the end of this release).
ARLP also announced that the Board of Directors of its managing general partner increased the cash distribution to unitholders for the 2012 Quarter to $1.0625 per unit (an annualized rate of $4.25 per unit), payable on August 14, 2012 to all unitholders of record as of the close of trading on August 7, 2012. The announced distribution represents a 15.2% increase over the cash distribution of $0.9225 per unit for the 2011 Quarter and a 3.7% increase over the cash distribution of $1.025 per unit for the first quarter of 2012 (the “Sequential Quarter”).
"ARLP’s operating strength, quality customer relationships and solid contract position allowed us to overcome challenging market conditions and deliver another quarter of excellent results to our unitholders," said Joseph W. Craft III, President and Chief Executive Officer. "In addition to posting record EBITDA, sales volumes and revenue, our team’s accomplishments during the 2012 Quarter continued to strengthen ARLP’s long-term growth prospects. Operationally, we commenced longwall operations in mid-May at our Tunnel Ridge mine, completed the acquisition of the Onton No. 9 mine and continued to make progress at the Gibson South and White Oak mine development projects. On the sales side, we continued to execute ARLP’s strategy of securing long-term commitments for our production. To that end, we recently reached agreement for the sale of approximately 5.6 million tons over a six-year period. Since the beginning of the year, we have now made new coal sales commitments of 27 million tons, plus or minus 10% depending on customer nominations, for deliveries through 2018. Financially, we improved our liquidity by approximately $500 million by entering into new revolving credit and term loan facilities. These accomplishments continue to position ARLP for long-term growth giving our Board the confidence to again provide our unitholders with an attractive distribution increase for the seventeenth consecutive quarter."