Alliance Resource Partners, L.P. (NASDAQ: ARLP) today reported financial and operating results for the quarter ended March 31, 2014 (the "2014 Quarter"). On the strength of record coal production and solid cost control in each of its operating regions, ARLP’s net income rose 12.6% to a record $115.9 million, or net income per basic and diluted limited partner unit of $2.20 per unit, a 12.8% increase compared to the quarter ended March 31, 2013 (the "2013 Quarter"). EBITDA also climbed to a record $190.4 million for the 2014 Quarter, an increase of 10.0% compared to the 2013 Quarter. (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 (the "Board") increased the cash distribution to unitholders for the 2014 Quarter to $1.2225 per unit (an annualized rate of $4.89 per unit), payable on May 15, 2014 to all unitholders of record as of the close of trading on May 8, 2014. The announced distribution represents an 8.2% increase over the cash distribution of $1.13 per unit for the 2013 Quarter and a 2.1% increase over the cash distribution of $1.1975 per unit for the quarter ended December 31, 2013 (the "Sequential Quarter").
The Board also approved a two-for-one split of ARLP’s common units. The unit split will take place in the form of a one unit distribution on each unit outstanding, with units to be distributed on June 16, 2014 to unitholders of record as of May 30, 2014. Following the unit split, unitholders of record will own twice the number of units and the current quarterly cash distribution per unit will be reduced by half; for example, the 2014 Quarter distribution of $1.2225 per unit would have been $0.61125 per unit, or an annualized rate of $2.445 per unit. As a result, the total distribution received by ARLP unitholders would have been the same after consummation of the unit split.