Alliance Holdings GP L.P. (AHGP, Financial) filed Quarterly Report for the period ended 2009-09-30.
Alliance Holdings GP L.P. through its subsidiaries produces and markets coal primarily to utilities and industrial users in the United States. It produces a range of steam coal with varying sulfur and heat contents. Alliance Holdings GP L.P. is a limited partnership formed to own and control Alliance Resource Management GP LLC the managing general partner of Alliance Resource Partners L.P. a publicly traded limited partnership engaged in the production and marketing of coal to major U.S. utilities and industrial users. . In addition the company leases land and operates a coal loading terminal. . Further it engages in trading of coal as well as offers services including ash and scrubber sludge removal coal yard maintenance and arranging alternate transportation services. The company is based in Tulsa Oklahoma. Alliance Holdings Gp L.p. has a market cap of $1.36 billion; its shares were traded at around $22.72 with a P/E ratio of 12.8 and P/S ratio of 1.2. The dividend yield of Alliance Holdings Gp L.p. stocks is 7.5%.
General and administrative. General and administrative expenses for the 2009 Quarter increased to $10.4 million compared to $7.6 million in the 2008 Quarter. The increase of $2.8 million was primarily due to higher unit-based incentive compensation expense.
Depreciation, depletion and amortization. Depreciation, depletion and amortization expense increased to $28.1 million for the 2009 Quarter from $25.4 million for the 2008 Quarter. The increase of $2.7 million was primarily attributable to additional depreciation expense associated with continuing capital expenditures related to infrastructure improvements, efficiency projects and expansion of production capacity.
Interest expense. Interest expense, net of capitalized interest decreased to $7.7 million for the 2009 Quarter from $8.1 million for the 2008 Quarter. The decrease of $0.4 million was principally attributable to reduced interest expense resulting from the ARLP Partnerships August 2009 principal repayment of $18.0 million on its original senior notes issued in 1999.
Interest income. Interest income decreased to $0.1 million for the 2009 Quarter compared to $2.1 million for the 2008 Quarter. The decrease of $2.0 million resulted from a decrease in short-term investments, which were originally purchased with proceeds
Segment Adjusted EBITDA. Our 2009 Quarter Segment Adjusted EBITDA increased $14.7 million, or 21.7%, to $82.6 million from the 2008 Quarter Segment Adjusted EBITDA of $67.9 million. Segment Adjusted EBITDA, tons sold, coal sales, other sales and operating revenues and Segment Adjusted EBITDA Expense by segment are (in thousands):
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Alliance Holdings GP L.P. through its subsidiaries produces and markets coal primarily to utilities and industrial users in the United States. It produces a range of steam coal with varying sulfur and heat contents. Alliance Holdings GP L.P. is a limited partnership formed to own and control Alliance Resource Management GP LLC the managing general partner of Alliance Resource Partners L.P. a publicly traded limited partnership engaged in the production and marketing of coal to major U.S. utilities and industrial users. . In addition the company leases land and operates a coal loading terminal. . Further it engages in trading of coal as well as offers services including ash and scrubber sludge removal coal yard maintenance and arranging alternate transportation services. The company is based in Tulsa Oklahoma. Alliance Holdings Gp L.p. has a market cap of $1.36 billion; its shares were traded at around $22.72 with a P/E ratio of 12.8 and P/S ratio of 1.2. The dividend yield of Alliance Holdings Gp L.p. stocks is 7.5%.
Highlight of Business Operations:
We reported Net Income of AHGP of $23.7 million for three months ended September 30, 2009 (2009 Quarter) compared to $18.5 million for the three months ended September 30, 2008 (2008 Quarter). This increase of $5.2 million was principally due to the ALRP Partnerships improved contract pricing resulting in an average coal sales price of $45.58 per ton sold, compared to $40.79 per ton sold for the 2008 Quarter. The ARLP Partnership sold 6.2 million tons and produced 6.3 million tons in the 2009 Quarter, compared to 6.6 million tons sold and produced in the 2008 Quarter. Unplanned customer outages, contractual deferrals and weak spot market demand continued to impact coal sales and production volumes in the 2009 Quarter compared to the 2008 Quarter. Increased operating expenses (excluding outside coal purchases) during the 2009 Quarter primarily reflect the increase in labor and labor-related expenses, as well as higher sales-related expenses, and other factors described below.General and administrative. General and administrative expenses for the 2009 Quarter increased to $10.4 million compared to $7.6 million in the 2008 Quarter. The increase of $2.8 million was primarily due to higher unit-based incentive compensation expense.
Depreciation, depletion and amortization. Depreciation, depletion and amortization expense increased to $28.1 million for the 2009 Quarter from $25.4 million for the 2008 Quarter. The increase of $2.7 million was primarily attributable to additional depreciation expense associated with continuing capital expenditures related to infrastructure improvements, efficiency projects and expansion of production capacity.
Interest expense. Interest expense, net of capitalized interest decreased to $7.7 million for the 2009 Quarter from $8.1 million for the 2008 Quarter. The decrease of $0.4 million was principally attributable to reduced interest expense resulting from the ARLP Partnerships August 2009 principal repayment of $18.0 million on its original senior notes issued in 1999.
Interest income. Interest income decreased to $0.1 million for the 2009 Quarter compared to $2.1 million for the 2008 Quarter. The decrease of $2.0 million resulted from a decrease in short-term investments, which were originally purchased with proceeds
Segment Adjusted EBITDA. Our 2009 Quarter Segment Adjusted EBITDA increased $14.7 million, or 21.7%, to $82.6 million from the 2008 Quarter Segment Adjusted EBITDA of $67.9 million. Segment Adjusted EBITDA, tons sold, coal sales, other sales and operating revenues and Segment Adjusted EBITDA Expense by segment are (in thousands):
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