This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Alliance Resource Partners, L.P. Increases Quarterly Distribution By 2.1% To $1.085 Per Unit: Posts Record Coal Sales And Production Volumes And Reports Quarterly Financial Results

Alliance Resource Partners, L.P. (NASDAQ: ARLP) today reported financial results for the quarter ended September 30, 2012 (the "2012 Quarter"). Net income in the 2012 Quarter fell to $60.5 million, or $0.89 per basic and diluted limited partner unit, compared to $104.1 million, or $2.16 per basic and diluted limited partner unit, for the quarter ended September 30, 2011 (the "2011 Quarter"). The decrease in the 2012 Quarter primarily reflects approximately $24.1 million of losses and charges related to the previously announced idling of the Pontiki mine, including a $19.0 million non-cash asset impairment, and approximately $17.8 million due to reduced coal sales into the metallurgical export markets. Adjusted EBITDA, which excludes the non-cash impairment of the Pontiki mine, decreased 4.0% to $146.6 million compared to the 2011 Quarter. (For definitions of EBITDA and Adjusted 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 $1.085 per unit (an annualized rate of $4.34 per unit), payable on November 14, 2012 to all unitholders of record as of the close of trading on November 7, 2012. The announced distribution represents a 13.6% increase over the cash distribution of $0.955 per unit for the 2011 Quarter and a 2.1% increase over the cash distribution of $1.0625 per unit for the second quarter of 2012 (the “Sequential Quarter”).

"ARLP posted record coal sales and production volumes for the 2012 Quarter, however EBITDA and net income were negatively impacted by the unplanned idling of our Pontiki mine and the previously anticipated lack of export sales due to weak demand in the global coal markets" said Joseph W. Craft III, President and Chief Executive Officer. "As we navigate through the current environment, we are steadily making progress in building for the future. During the 2012 Quarter, our development projects at Gibson South and White Oak continued to move forward in line with our expectations. Performance of our new Tunnel Ridge longwall continued to improve as its production in the 2012 Quarter reached 764,000 tons, which was nearly 500,000 tons better than the Sequential Quarter. We also continued to add to our sales book during the 2012 Quarter, securing new coal sales commitments for approximately 1.65 million tons to be delivered through 2014, bringing our total year-to-date new commitments to approximately 28.7 million tons for deliveries through 2018. Our visible production growth and strong contract portfolio give us confidence that ARLP is well positioned to manage through current market challenges - allowing us to provide our unitholders with an attractive distribution increase for the eighteenth consecutive quarter."

1 of 10

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,678.23 -40.31 -0.23%
S&P 500 2,056.15 -4.90 -0.24%
NASDAQ 4,863.3620 -13.1570 -0.27%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs