Peabody Energy Corp saw its loss widen to $150.60 million, for the quarter ended Sep. 30, 2014. The company saw its loss widen to $150.60 million in the quarter ended compared with $26.10 million a year ago. On an adjusted basis, loss per share was at $.59 in the third-quarter compared with a profit of $0.05a share in the same period last year.
Revenue during the quarter dropped 4.16 percent to $1,722.90 million from $1,797.60 million in the previous year period. Total expenses were 97.90 percent of quarterly revenues, up from 93.76 percent for the same period last year. That has resulted in a contraction of 414 basis points in operating margin to 2.10 percent.
Operating income for the quarter was $36.20 million, compared with $112.20 million in the previous year period.
Cash and cash equivalents stood at $466.50 million as on Sep. 30, 2014, down 15.38 percent or $84.80 million from $551.30 million on Sep. 30, 2013.
"In the face of challenging times for the coal industry, Peabody continues to control the controllable and take the necessary actions to best position the company through strong operating performance, solid operating cash flows, lower costs and reduced capital targets," said Peabody Energy chairman and chief executive officer Gregory H. Boyce. "Regarding industry fundamentals, we look forward to greater realization of announced metallurgical coal supply cutbacks, continued growth in Indian coal imports, and improving Southern Powder River Basin rail performance to rebuild utility stockpiles and meet strong underlying demand."
OUTLOOK
Peabody is targeting full-year 2014 adjusted EBITDA of $765 million to $815 million and adjusted diluted EPS of $(1.48) to $(1.38), excluding any charges related to implementation of an organizational restructuring program that was recently launched. "Targets reflect lower seaborne thermal coal pricing and reduced production at the Wilpinjong Mine as strong year-to-date performance is expected to result in the mine reaching annual permit levels before year end."
Additional full-year 2014 targets include total sales of 245 to 255 million tons; U.S. costs per ton 1 to 3 percent below 2013 levels on cost containment efforts; U.S. revenues per ton improved to 2 to 4 percent below 2013 levels on higher realized price per ton; and Australian costs of approximately $70 per ton.
Working Capital
Peabody Energy Corp has witnessed a decline in the working capital over the last year. It stood at $231.10 million as at Sep. 30, 2014, down 63.22 percent or $397.20 million from $628.30 million on Sep. 30, 2013. Current ratio was at 1.14 as on Sep. 30, 2014, down from 1.38 on Sep. 30, 2013. Days sales outstanding went down to 13 days for the quarter compared with 37 days for the same period last year.
Debt Level
Peabody Energy Corp has recorded a decline in total debt over the last one year. It stood at $5,991.10 million as on Sep. 30, 2014, down .27 percent or $16.40 million from $6,007.50 million on Sep. 30, 2013. Total debt was 44.23 percent of total assets as on Sep. 30, 2014, compared with 40.34 percent on Sep. 30, 2013. Debt to equity ratio was at 1.32 as on Sep. 30, 2013. Interest coverage ratio decreased to 0.32 for the quarter from 1.01 for the same period last year.
