Peabody Energy Announces Results For The Quarter Ended June 30, 2013

ST. LOUIS, July 23, 2013 /PRNewswire/ -- Peabody Energy (NYSE: BTU) today reported second quarter 2013 revenues of $1.73 billion, resulting in Adjusted EBITDA of $254.3 million compared with $450.1 million in the prior year.  Second quarter Adjusted EBITDA includes the impact of $32.5 million in charges relating to a $20.6 million court judgment and a $11.9 million voluntary employee separation program in the United States.  Income from Continuing Operations totaled $101.4 million with Diluted Earnings Per Share from Continuing Operations of $0.39 and Adjusted Diluted Earnings Per Share of $0.33.

"The strength of Peabody's global platform and the significant progress of our cost containment actions helped us overcome a number of challenges during the quarter," said Peabody Energy Chairman and Chief Executive Officer Gregory H. Boyce.  "Our progress in reducing capital and moving our operations down the cost curve highlights the actions we are taking to succeed in all market conditions.  Peabody continues to drive improvements across our platform, which remains very well positioned with competitive assets in the growth regions of the United States and Australia."

RESULTS FROM PEABODY CONTINUING OPERATIONS

Second quarter revenues declined 13 percent to $1.73 billion on lower realized pricing from Mining Operations as well as lower Trading and Brokerage results.  Australian price declines were partly offset by a 5 percent volume increase.  Australian sales totaled 8.6 million tons, including 4.1 million tons of metallurgical coal and 2.6 million tons of seaborne thermal coal.  U.S. revenues of $970.9 million fell from the prior year on lower realized pricing and a higher percentage of Western U.S. shipments.  

Australian Mining Adjusted EBITDA of $112.5 million was impacted by approximately $200 million related to lower pricing.  Australian results overcame geologic issues at the North Goonyella and Burton mines, while benefitting from focused spending reductions and a declining Australian dollar that drove a 6 percent improvement in Australian costs per ton.  Mines recently converted to owner-operated status and the completed remediation efforts at the PCI mines have lowered operating costs by 20 percent on a combined basis compared to 2012 levels. 

U.S. Mining Adjusted EBITDA totaled $261.7 million, in line with the prior year, as a 6 percent decline in average unit costs mitigated lower realized pricing. 

Resource Management Adjusted EBITDA totaled $42.4 million following the completion of land and reserve sales located primarily in the Midwest.  Trading and Brokerage Adjusted EBITDA was impacted by a court judgment resulting from a 2006 contract dispute, as well as low price volatility and unfavorable mark-to-market movement on economic hedges.  These hedges are expected to reverse in the third quarter of 2013 as the underlying physical shipments are delivered.

Income from Continuing Operations totaled $101.4 million compared with $214.5 million in the prior year.  Results were affected by lower gross margins and higher depreciation, depletion and amortization expenses that were partially offset by a tax benefit relating to a lower annual earnings outlook.  Second quarter results also include a $21.5 million asset impairment relating to a decline in the value of a minority investment in a publicly listed company.  Diluted Earnings from Continuing Operations totaled $0.39 per share with Adjusted Diluted Earnings of $0.33 per share.