Peabody Energy Announces Results for the Quarter Ended September 30, 2011
- Revenues rise 9% to record $2.04 billion
- EBITDA totals $504 million with operating profit of $376 million
- Diluted EPS is $1.01 with adjusted diluted EPS of $0.87
- Cash flow from operations increases 34% to $575 million
- Targeting record year with expected EBITDA of $2.125 - $2.325 billion and adjusted diluted EPS of $3.70 - $4.15
- Completing acquisition of Macarthur Coal
ST. LOUIS, Oct. 25, 2011 /PRNewswire/ -- Peabody Energy
today reported third quarter 2011 EBITDA of $504.4 million on record quarterly revenues of $2.04 billion. Income from continuing operations was $283.5 million, with diluted earnings per share from continuing operations of $1.01. Adjusted diluted earnings per share from continuing operations totaled $0.87, compared with $0.99 in the prior year. Results reflect $21.9 million in expenses ($0.07 per share after tax) related to the takeover of Macarthur Coal. This includes $12.7 million of interest expense related to bridge financing fees for the transaction.'Peabody delivered solid third quarter results and we remain on track for our best year ever,' said Peabody Energy Chairman and Chief Executive Officer Gregory H. Boyce. 'The market supply-demand indicators largely remain positive, with Asian and European coal-fueled generation rising, recent Chinese coal imports setting new records, and U.S. coal inventories falling dramatically. Peabody is well positioned in the United States with strong committed sales and low-cost production. Globally, we are growing to serve increasing Asia-Pacific demand by expanding existing mines and completing the acquisition of Macarthur Coal.'
RESULTS FROM CONTINUING OPERATIONS
Third quarter revenues rose 9 percent over the prior year to $2.04 billion, driven by higher realized pricing in all regions and increased U.S. volumes. Total sales were 63.6 million tons compared with 64.0 million tons in the prior year.
EBITDA totaled $504.4 million, compared to $571.3 million in the prior year. Contributions from U.S. Mining Operations rose 10 percent over the prior year to $322.7 million on higher volumes and realized pricing. Australia EBITDA was $243.3 million compared with $323.2 million in the prior year, as the benefits of higher metallurgical and thermal coal pricing were offset by approximately $120 million in impacts from a previously announced roof fall and delayed completion of the planned longwall move at the North Goonyella Mine. These impacts included reduced shipments of high quality hard coking coal and higher costs resulting from lower production and roof fall rehabilitation. The North Goonyella longwall is now in startup mode following completion of the longwall relocation.
Trading and Brokerage contributed $57.4 million in EBITDA, a 30 percent increase over the prior year.
Operating profit for the quarter was $375.7 million. Operating cash flow of $574.9 million increased 34 percent over the prior year led by higher revenues.
Income from continuing operations totaled $283.5 million with adjusted income from continuing operations of $244.8 million. Diluted earnings per share from continuing operations was $1.01 while adjusted diluted earnings per share totaled $0.87.
Summary of Adjusted Income and Diluted
Earnings Per Share
--------------------------------------
Nine Months
Quarter Ended Ended
(Unaudited) (Unaudited)
------------- -----------
(Dollars in
Millions,
Except Per
Share
Data) Sept. Sept. Sept. Sept.
2011 2010 2011 2010
---- ---- ---- ----
Income from
Continuing
Operations $283.5 $237.6 $756.1 $589.4
Remeasurement
Expense
(Benefit)
Related to
Foreign
Income Tax
Accounts (38.7) 42.7 (16.9) 28.8
----- ---- ----- ----
Adjusted
Income
from
Continuing
Operations
(1) $244.8 $280.3 $739.2 $618.2
====== ====== ====== ======
Diluted EPS $1.01 $0.83 $2.72 $2.09
Remeasurement
Expense
(Benefit)
Related to
Foreign
Income Tax
Accounts (0.14) 0.16 (0.06) 0.11
----- ---- ----- ----
Adjusted
Diluted
EPS (1) $0.87 $0.99 $2.66 $2.20
===== ===== ===== =====
(1) Represents non-GAAP financial measures defined at the end of this
release and illustrated in the reconciliation of EBITDA tables after this
release.
GLOBAL COAL MARKETS AND PEABODY'S POSITION
Coal-fueled electricity generation continues to rise in Asia and Europe, driven by growing power demand in emerging nations and increased coal usage to backfill the reduction of nuclear power in Japan and Germany. Global steel production has risen 9 percent year to date, driving a proportionate increase in metallurgical coal demand.
Trends remain favorable in the Asia-Pacific markets. Chinese power generation has increased 13 percent year to date, while steel production is up 11 percent. China's third quarter net coal imports were 36 percent higher than the prior year, led by a record 18 million tons of net imports in September. In India, thermal coal imports have increased more than 40 percent year to date. In South Korea, coal imports have risen 9 percent year to date and are at record levels. European coal-fueled generation rose 5 percent in the third quarter due to sustained high gas prices and reduced nuclear power.
Looking forward, Peabody expects continued economic strength in emerging Asia to offset slow growth in developed economies. Seaborne coal supplies are likely to remain challenged due to geological issues, labor actions and tightened regulations. Longer term, infrastructure buildouts related to new five-year plans in China and India are expected to add more than a trillion dollars of investment in the power and rail sectors alone through 2015, continuing to fuel the acceleration of coal demand in Asia.
Australian thermal and metallurgical coal prices continue to reflect market fundamentals, evidenced by the recent settlements for Oct. 1 commencement. Australia seaborne thermal coal contracts settled at $126.50 per tonne, within 2 percent of the year's high. Metallurgical coal prices settled at $285 per tonne for quarterly benchmark contracts, up 36 percent over the prior year.
Peabody is settling fourth quarter metallurgical coal shipments in line with these recent settlements, with essentially all metallurgical coal production unpriced for 2012. The company is targeting total 2011 metallurgical coal sales of approximately 8.5 to 9.5 million tons.
In Australia, the company has less than 1 million tons of seaborne thermal coal unpriced for the fourth quarter and 75 to 80 percent of seaborne thermal volumes unpriced for 2012. The company is targeting 2011 Australian thermal exports of 12 to 13 million tons.
In the United States, while weak economic performance and manufacturing activity has resulted in lower electricity generation than the prior year, a number of coal trends have been positive. Higher cooling degree days this summer, greater U.S. coal exports and lower Western shipments as a result of Midwest flooding have led to the largest year-to-date inventory reduction since 1993. Powder River Basin inventories at electricity generators are at an estimated 49 days of use or 17 percent below prior-year levels.
New U.S. regulations on electric generating plants call for reduced sulfur dioxide (SO2) emissions. These regulations are expected to further drive the shift toward low sulfur Powder River Basin (PRB) coal, and will be largely neutral for Illinois Basin products that primarily supply generators with scrubbers already installed to reduce SO2 emissions. The price premium related to ultra-low sulfur coal is expected to be enhanced under these rules. Peabody's North Antelope Rochelle Mine, which produces more than half of Peabody's U.S. sales volumes and nearly 10 percent of U.S. production, contains approximately 40 percent less sulfur than the benchmark PRB product.
Reflecting these U.S. trends, forward Illinois Basin and Powder River Basin prices have risen since the beginning of the year even as Central Appalachian prices have declined.
Peabody is sold out for 2011 U.S. coal sales. The company has 10 to 15 percent of its expected U.S. coal production unpriced for 2012, and 50 to 60 percent unpriced for 2013.
MACARTHUR ACQUISITION
PEAMCoal has now achieved majority control of Macarthur Coal, the world's largest seaborne low-vol PCI supplier. With a relevant interest of more than 60 percent as of Oct. 24, the offer has been declared unconditional. The offer price for all shareholders will increase from A$16.00 to A$16.25 per share if PEAMCoal acquires relevant interests in at least 90 percent of Macarthur shares by 7 p.m. (Brisbane time) on Nov. 11, 2011.
ArcelorMittal also has announced its intention to sell its interest to Peabody, in lieu of proceeding with the joint venture. As a result, Peabody will own 100% of PEAMCoal and become the sole acquirer of Macarthur under the takeover offer.
'The Macarthur acquisition expands Peabody's presence in the highest-growth coal markets with a quality metallurgical coal product,' said Boyce. 'It provides a large resource base, significant potential synergies and a major growth pipeline. The investment continues our global market focus and increases the financial contribution from international assets. We will now target internal growth through an unmatched pipeline of organic development opportunities.'
According to Boyce, 'While we anticipated a positive joint venture with ArcelorMittal, we have always preferred a larger ownership. We partnered with ArcelorMittal to increase the likelihood of achieving control of Macarthur, which has now occurred. ArcelorMittal's decision accelerates our ability to realize synergies, integrate the operations and benefit from results.'
To finance the Macarthur acquisition, Peabody is obtaining a new senior unsecured term loan of up to $1 billion, and intends to fund its requirements related to the acquisition with cash and debt. Peabody believes it has good access to the bank and debt markets. ArcelorMittal must continue to fund its share of PEAMCoal obligations for up to 90 days, which will cover all takeover acceptances.
PEAMCoal intends to appoint representatives to the Macarthur Board on Wednesday, Oct. 26.
PROJECT UPDATE
-- Peabody continues to invest organically to satisfy the rising demand in
emerging markets. Peabody's major Australian mine expansion program
continues to advance, with three of the six projects expected to add
volumes by the end of this year. In the fourth quarter, the company
expects to complete the expansion of the Wilpinjong Mine where
operations at the upgraded preparation plant have begun. Peabody also
expects to receive final permitting to increase production at the
Millennium Mine, and start operations in the expanded Wambo open cut.
Peabody continues to target 35 to 40 million tons of Australian capacity
by 2014 to 2015, including 12 to 15 million tons of metallurgical coal
capacity and 15 to 17 million tons of export thermal coal capacity.
These targets currently exclude the additional volumes Peabody expects
to achieve through Macarthur's extensive growth pipeline.
-- In Mongolia, Peabody has entered into a memorandum of understanding with
Winsway Coking Coal Holdings Limited to market coal in China and the
Asia-Pacific region.
-- The company is advancing discussions with the Xinjiang Province in China
regarding reserve allocations to develop a 50 million ton-per-year
surface mine, with startup planned for the 2014 to 2015 timeframe.
-- Peabody opened an office in Essen, Germany, further expanding its coal
trading platform in the European coal markets.
The company continues to target full-year capital expenditures of $900 to $950 million.
OUTLOOK
Peabody continues to target 2011 EBITDA of $2.125 to $2.325 billion and adjusted diluted earnings per share of $3.70 to $4.15. The fourth quarter is expected to benefit from higher volumes in the Unites States and Australia, partly offset by effects related to the resumption of production and recovery of shipments at the North Goonyella Mine as well as any industrywide impacts due to weather and transportation challenges.
Peabody targets total 2011 sales of 245 to 255 million tons including 27 to 29 million tons from Australia, 200 to 205 million tons from the United States and the remainder from Trading and Brokerage activities.
Targets do not incorporate potential results attributable to Macarthur or additional transaction-related expenses incurred in the fourth quarter.
Peabody Energy is the world's largest private-sector coal company and a global leader in clean coal solutions. Its coal products fuel approximately 10 percent of U.S. power and 2 percent of worldwide electricity.
Certain statements in this press release are forward-looking as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on numerous assumptions that the company believes are reasonable, but they are open to a wide range of uncertainties and business risks that may cause actual results to differ materially from expectations as of October 25, 2011. These factors are difficult to accurately predict and may be beyond the company's control. The company does not undertake to update its forward-looking statements. Factors that could affect the company's results include, but are not limited to: demand for coal in the United States and the seaborne thermal and metallurgical coal markets; price volatility and demand, particularly in higher-margin products and in our trading and brokerage businesses; impact of weather on demand, production and transportation; reductions and/or deferrals of purchases by major customers and ability to renew sales contracts; credit and performance risks associated with customers, suppliers, co-shippers, trading, banks and other financial counterparties; geologic, equipment, permitting and operational risks related to mining; transportation availability, performance and costs; availability, timing of delivery and costs of key supplies, capital equipment or commodities such as diesel fuel, steel, explosives and tires; successful implementation of business strategies, including our Btu Conversion and generation development initiatives; negotiation of labor contracts, employee relations and workforce availability; changes in postretirement benefit and pension obligations and funding requirements; replacement and development of coal reserves; access to capital and credit markets and availability and costs of credit, margin capacity, surety bonds, letters of credit, and insurance; effects of changes in interest rates and currency exchange rates (primarily the Australian dollar); effects of acquisitions or divestitures, including the takeover of Macarthur Coal; economic strength and political stability of countries in which we have operations or serve customers; legislation, regulations and court decisions or other government actions, including new environmental and mine safety requirements, changes in income tax regulations or other regulatory taxes; litigation, including claims not yet asserted; and other risks detailed in the company's reports filed with the Securities and Exchange Commission (SEC).
Included in our release of financial information accounted for in accordance with generally accepted accounting principles (GAAP) are certain non-GAAP financial measures, as defined by SEC regulations. We have defined below the non-GAAP financial measures that we use and have included in the following tables of this release reconciliations of these measures to the most directly comparable GAAP measures.
EBITDA (also called Adjusted EBITDA) is defined as income from continuing operations before deducting net interest expense, income taxes, asset retirement obligation expense and depreciation, depletion and amortization. EBITDA, which is not calculated identically by all companies, is not a substitute for operating income, net income or cash flow as determined in accordance with United States generally accepted accounting principles. Management uses EBITDA as a key measure of operating performance and also believes it is a useful indicator of the company's ability to meet debt service and capital expenditure requirements.
Adjusted Income from Continuing Operations and Adjusted EPS are defined as income from continuing operations and diluted earnings per share excluding the impact of the remeasurement of foreign income tax accounts. Management has included these measures because, in management's opinion, excluding such impact is a better indicator of the company's ongoing effective tax rate and diluted earnings per share, and is therefore more useful in comparing the company's results with prior and future periods.
CONTACT:Vic Svec(314) 342-7768
Condensed Consolidated Statements of
Operations (Unaudited)
For the Quarters Ended Sept. 30, 2011 and 2010 and Nine Months
Ended Sept. 30, 2011 and 2010
--------------------------------------------------------------
(Dollars in Millions, Except Per Share
Data)
Quarter Ended Nine Months Ended
------------- -----------------
Sept. Sept. Sept. Sept.
2011 2010 2011 2010
---- ---- ---- ----
Tons Sold (In Millions) 63.6 64.0 183.0 182.0
==== ==== ===== =====
Revenues $2,035.9 $1,864.7 $5,788.8 $5,041.7
Operating Costs and
Expenses 1,458.8 1,243.3 4,119.7 3,526.7
Depreciation, Depletion
and Amortization 113.7 116.7 327.8 327.3
Asset Retirement
Obligation Expense 15.0 9.9 43.9 30.3
Selling and
Administrative Expenses 71.2 54.1 191.4 163.6
Other Operating (Income)
Loss:
Net Gain on Disposal or
Exchange of Assets (1.7) (6.7) (31.4) (15.4)
Loss (Income) from
Equity Affiliates 3.2 2.7 9.0 (2.1)
--- --- --- ----
Operating Profit 375.7 444.7 1,128.4 1,011.3
Interest Income (4.1) (2.8) (11.7) (5.4)
Interest Expense:
Interest Expense 46.5 53.8 144.9 152.4
Refinancing Charges - 8.4 1.7 17.7
Bridge Facility 12.7 - 12.7 -
---- --- ---- ---
Interest Expense 59.2 62.2 159.3 170.1
---- ---- ----- -----
Income from Continuing
Operations Before
Income Taxes 320.6 385.3 980.8 846.6
Income Tax Provision:
Provision 75.8 105.0 241.6 228.4
Remeasurement Expense
(Benefit) Related to
Foreign
Income Tax Accounts (38.7) 42.7 (16.9) 28.8
----- ---- ----- ----
Income Tax Provision 37.1 147.7 224.7 257.2
---- ----- ----- -----
Income from Continuing
Operations, Net of
Income Taxes 283.5 237.6 756.1 589.4
Loss from Discontinued
Operations, Net of
Income Taxes (2.0) (1.3) (3.7) (2.2)
---- ---- ---- ----
Net Income 281.5 236.3 752.4 587.2
Less: Net Income
Attributable to
Noncontrolling
Interests 7.4 12.2 17.0 23.2
--- ---- ---- ----
Net Income Attributable
to Common Stockholders $274.1 $224.1 $735.4 $564.0
====== ====== ====== ======
Diluted EPS (1):
Income (Loss)
Attributable to Common
Stockholders:
Continuing Operations
(2) $1.01 $0.83 $2.72 $2.09
Discontinued Operations (0.01) - (0.01) (0.01)
-----
Net Income Attributable
to Common Stockholders $1.00 $0.83 $2.71 $2.08
===== ===== ===== =====
EBITDA $504.4 $571.3 $1,500.1 $1,368.9
====== ====== ======== ========
Adjusted Diluted EPS
(1):
Adjusted Income from
Continuing Operations:
Continuing Operations
(2) $1.01 $0.83 $2.72 $2.09
Remeasurement Expense
(Benefit) Related to
Foreign
Income Tax Accounts (0.14) 0.16 (0.06) 0.11
----- ---- ----- ----
Adjusted Income from
Continuing Operations $0.87 $0.99 $2.66 $2.20
===== ===== ===== =====
Weighted average diluted shares outstanding were 270.6 million and 268.6
million for the quarters ended Sept. 30, 2011 and 2010, respectively, and
270.5 million and 268.4 million for the nine months ended Sept. 30, 2011 and
2010, respectively. We compute EPS using a two-class method using an
earnings allocation method that determines EPS separately for common stock and
participating securities. As a result, it may not be possible to recalculate
EPS as presented in our condensed consolidated statements of operations. For
the quarter and nine months ended Sept. 30, 2011 and 2010, there was no
dilutive impact of our Convertible Junior Subordinated Debentures on diluted
(1) EPS.
Reflects income from continuing operations, net of income taxes less net income
(2) attributable to noncontrolling interests.
Supplemental Financial Data (Unaudited)
For the Quarters Ended Sept. 30, 2011 and 2010 and Nine Months
Ended Sept. 30, 2011 and 2010
--------------------------------------------------------------
Quarter Ended Nine Months Ended
------------- -----------------
Sept. Sept. Sept. Sept.
2011 2010 2011 2010
---- ---- ---- ----
Revenue Summary (Dollars
in Millions)
------------------------
U.S. Mining Operations $1,143.6 $1,024.5 $3,204.5 $2,971.4
Australian Mining
Operations 757.4 733.4 2,223.3 1,777.3
Trading and Brokerage
Operations 131.5 101.8 329.5 273.7
Other 3.4 5.0 31.5 19.3
--- --- ---- ----
Total $2,035.9 $1,864.7 $5,788.8 $5,041.7
======== ======== ======== ========
Tons Sold (In
Millions)
-------------
Midwestern U.S. Mining
Operations 7.8 7.2 22.3 21.6
Western U.S. Mining
Operations 43.7 41.9 127.2 121.7
Australian Mining
Operations 6.6 7.4 19.1 20.0
Trading and Brokerage
Operations 5.5 7.5 14.4 18.7
--- --- ---- ----
Total (1) 63.6 64.0 183.0 182.0
==== ==== ===== =====
Revenues per Ton -
Mining Operations
------------------
Midwestern U.S. $49.06 $43.95 $48.43 $43.91
Western U.S. 17.38 16.87 16.71 16.62
Total - U.S. 22.21 20.85 21.45 20.74
Australia 115.13 100.14 116.26 88.99
Operating Costs per Ton
-Mining Operations (2)
-----------------------
Midwestern U.S. $35.81 $33.24 $35.16 $33.61
Western U.S. 12.37 11.73 12.52 11.43
Total - U.S. 15.94 14.89 15.91 14.78
Australia 78.16 56.01 73.87 55.44
Gross Margin per Ton -
Mining Operations (2)
----------------------
Midwestern U.S. $13.25 $10.71 $13.27 $10.30
Western U.S. 5.01 5.14 4.19 5.19
Total - U.S. 6.27 5.96 5.54 5.96
Australia 36.97 44.13 42.39 33.55
Operating Profit per
Ton $5.91 $6.95 $6.17 $5.56
Quarter Ended Nine Months Ended
------------- -----------------
Sept. Sept. Sept. Sept.
(Dollars in
Millions) 2011 2010 2011 2010
----------- ---- ---- ---- ----
EBITDA -
U.S. Mining
Operations $322.7 $292.9 $828.1 $853.6
EBITDA -
Australian
Mining
Operations 243.3 323.2 810.7 670.1
EBITDA -
Trading and
Brokerage
Operations 57.4 44.3 134.6 91.0
EBITDA -
Resource
Management
(3) 0.2 5.0 25.9 9.3
Selling and
Administrative
Expenses (71.2) (54.1) (191.4) (163.6)
Other
Operating
Costs, Net
(4) (48.0) (40.0) (107.8) (91.5)
EBITDA 504.4 571.3 1,500.1 1,368.9
Depreciation,
Depletion
and
Amortization (113.7) (116.7) (327.8) (327.3)
Asset
Retirement
Obligation
Expense (15.0) (9.9) (43.9) (30.3)
Operating
Profit 375.7 444.7 1,128.4 1,011.3
Operating
Cash Flows 574.9 427.8 1,190.5 892.2
Coal Reserve
Lease
Expenditures 42.4 - 42.4 -
Capital
Expenditures
(Excludes
Acquisitions) 269.7 125.8 646.0 343.8
Metallurgical coal sales totaled 1.6 million and 2.4 million tons for the
quarters ended Sept. 30, 2011 and 2010, respectively, and 6.0 million and 6.9
(1) million tons for the nine months ended Sept. 30, 2011 and 2010, respectively.
Includes revenue-based production taxes and royalties; excludes depreciation,
depletion and amortization; asset retirement obligation expense; selling and
administrative expenses; and certain other costs related to post-mining
(2) activities.
Includes certain asset sales, property management costs and revenues, and coal
(3) royalty expense.
Includes Generation Development and Btu Conversion development costs, costs
associated with post-mining activities, (income) losses from equity interests
(4) and provisions for litigation.
This information is intended to be reviewed in conjunction with the company's
filings with the Securities and Exchange Commission.
Condensed Consolidated
Balance Sheets
Sept. 30, 2011 and
Dec. 31, 2010
------------------
(Dollars in Millions)
(Unaudited)
Sept. 30, 2011 Dec. 31, 2010
-------------- -------------
Cash and Cash
Equivalents $1,401.6 $1,295.2
Receivables, Net 591.4 558.2
Inventories 351.9 332.9
Assets from Coal
Trading Activities,
Net 66.0 192.5
Deferred Income Taxes 90.9 120.4
Other Current Assets 503.2 459.0
----- -----
Total Current Assets 3,005.0 2,958.2
Net Property, Plant,
Equipment and Mine
Development 7,808.1 7,426.1
Investments and Other
Assets 878.5 978.8
----- -----
Total Assets $11,691.6 $11,363.1
========= =========
Current Maturities of
Debt $43.8 $43.2
Liabilities from Coal
Trading Activities,
Net 62.6 181.7
Accounts Payable and
Accruals 1,334.9 1,288.8
------- -------
Total Current
Liabilities 1,441.3 1,513.7
Long-Term Debt 2,458.6 2,706.8
Deferred Income Taxes 499.6 539.8
Other Long-Term
Liabilities 1,969.6 1,913.5
------- -------
Total Liabilities 6,369.1 6,673.8
Stockholders' Equity 5,322.5 4,689.3
------- -------
Total Liabilities and
Stockholders' Equity $11,691.6 $11,363.1
========= =========
This information is intended to be reviewed in
conjunction with the company's filings with the
Securities and Exchange Commission.
Reconciliation of EBITDA to Income from Continuing Operations, Net of
Income Taxes (Unaudited)
For the Quarters Ended Sept. 30, 2011 and 2010 and the Nine Months
Ended Sept. 30, 2011 and 2010
------------------------------------------------------------------
(Dollars in Millions) Quarter Ended Nine Months Ended
------------- -----------------
Sept. Sept. Sept. Sept.
2011 2010 2011 2010
---- ---- ---- ----
EBITDA $504.4 $571.3 $1,500.1 $1,368.9
Depreciation, Depletion and
Amortization 113.7 116.7 327.8 327.3
Asset Retirement Obligation
Expense 15.0 9.9 43.9 30.3
Interest Income (4.1) (2.8) (11.7) (5.4)
Interest Expense 59.2 62.2 159.3 170.1
Income Tax Provision Before
Remeasurement of Foreign Income
Tax Accounts 75.8 105.0 241.6 228.4
---- ----- ----- -----
Adjusted Income from Continuing
Operations (1) 244.8 280.3 739.2 618.2
Remeasurement Expense (Benefit)
Related to Foreign Income Tax
Accounts (38.7) 42.7 (16.9) 28.8
----- ---- ----- ----
Income from Continuing Operations,
Net of Income Taxes $283.5 $237.6 $756.1 $589.4
====== ====== ====== ======
Net Income Attributable to
Noncontrolling Interests $7.4 $12.2 $17.0 $23.2
==== ===== ===== =====
Reconciliation of EBITDA to Income from Continuing Operations, Net of
Income Taxes -2011 Targets (Unaudited)
---------------------------------------------------------------------
Year Ending Dec.
(Dollars in Millions) 31, 2011
Targeted Results
----------------
Low High
--- ----
EBITDA $2,125 $2,325
Depreciation, Depletion and
Amortization 465 475
Asset Retirement Obligation
Expense 54 50
Interest Income (12) (14)
Interest Expense 200 198
Bridge Facility 17 17
Income Tax Provision Before
Remeasurement of Foreign Income
Tax Accounts 360 430
--- ---
Adjusted Income from Continuing
Operations (1) 1,041 1,169
Remeasurement Benefit Related to
Foreign Income Tax Accounts (17) (17)
---
Income from Continuing Operations,
Net of Income Taxes $1,058 $1,186
====== ======
Net Income Attributable to
Noncontrolling Interests $30 $34
=== ===
Adjusted Diluted EPS:
Adjusted Income from Continuing
Operations:
Continuing Operations(2) $3.76 $4.21
Remeasurement Benefit Related to
Foreign Income Tax Accounts (0.06) (0.06)
Adjusted Income from Continuing
Operations $3.70 $4.15
===== =====
In order to arrive at the numerator used to calculate adjusted
diluted EPS, it is necessary to deduct net income attributable
(1) to noncontrolling interests from this amount.
Reflects income from continuing operations, net of income taxes
(2) less net income attributable to noncontrolling interests.
This information is intended to be reviewed in conjunction with the company's filings
with the Securities and Exchange Commission.
Peabody Energy
Web site: http://www.peabodyenergy.com/