Alliance Holdings GP L.P. (AHGP, Financial) filed Quarterly Report for the period ended 2010-03-31.
Alliance Holdings Gp L.p. has a market cap of $1.71 billion; its shares were traded at around $28.53 with a P/E ratio of 14.6 and P/S ratio of 1.5. The dividend yield of Alliance Holdings Gp L.p. stocks is 6.4%.AHGP is in the portfolios of Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC.
General and administrative. General and administrative expenses for the 2010 Quarter increased to $11.2 million compared to $10.1 million in the 2009 Quarter. The increase of $1.1 million was primarily due to increases in salary expenses, incentive accruals and outside services expenses.
Outside coal purchases. Outside coal purchases decreased to $1.8 million for the 2010 Quarter compared to $4.8 million in the 2009 Quarter. The decrease of $3.0 million was primarily attributable to reduced outside coal purchases at all of the reporting segments, predominantly in the Central Appalachian region due to weak demand in the spot coal markets.
Depreciation, depletion and amortization. Depreciation, depletion and amortization expense increased to $36.3 million for the 2010 Quarter from $27.4 million for the 2009 Quarter. The increase of $8.9 million was attributable to additional depreciation expense associated with continuing capital expenditures related to infrastructure improvements, efficiency projects and expansion of production capacity, particularly at the ARLP Partnerships River View mine.
Interest expense. Interest expense, net of capitalized interest, decreased to $7.6 million for the 2010 Quarter from $8.0 million for the 2009 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 partially offset by increased interest expense on the ARLP Partnerships $150.0 million revolving credit facility (ARLP Credit Facility), each of which are discussed in more detail below under Debt Obligations.
Segment Adjusted EBITDA. Our 2010 Quarter Segment Adjusted EBITDA increased $12.2 million, or 10.4%, to $129.6 million from the 2009 Quarter Segment Adjusted EBITDA of $117.4 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. has a market cap of $1.71 billion; its shares were traded at around $28.53 with a P/E ratio of 14.6 and P/S ratio of 1.5. The dividend yield of Alliance Holdings Gp L.p. stocks is 6.4%.AHGP is in the portfolios of Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
We reported record net income of $74.4 million for the three months ended March 31, 2010 (2010 Quarter) compared to $72.2 million for the three months ended March 31, 2009 (2009 Quarter). This increase of $2.2 million was principally due to improved contract pricing and commitments resulting in a record quarterly average coal sales price of $49.34 per ton sold, as compared to $48.59 per ton sold for the 2009 Quarter. The ARLP Partnership had record tons sold of 7.4 million tons and record tons produced of 7.5 million tons in the 2010 Quarter, compared to 6.4 million tons sold and 6.9 million tons produced in the 2009 Quarter. This increase in produced tons primarily reflects increased production resulting from the new River View mine and resulted in higher operating expenses during the 2010 Quarter. Increased operating expenses also primarily reflect the increase in labor and labor-related expenses, material and supplies expenses, as well as higher costs associated with beginning coal inventories and sales-related expenses.General and administrative. General and administrative expenses for the 2010 Quarter increased to $11.2 million compared to $10.1 million in the 2009 Quarter. The increase of $1.1 million was primarily due to increases in salary expenses, incentive accruals and outside services expenses.
Outside coal purchases. Outside coal purchases decreased to $1.8 million for the 2010 Quarter compared to $4.8 million in the 2009 Quarter. The decrease of $3.0 million was primarily attributable to reduced outside coal purchases at all of the reporting segments, predominantly in the Central Appalachian region due to weak demand in the spot coal markets.
Depreciation, depletion and amortization. Depreciation, depletion and amortization expense increased to $36.3 million for the 2010 Quarter from $27.4 million for the 2009 Quarter. The increase of $8.9 million was attributable to additional depreciation expense associated with continuing capital expenditures related to infrastructure improvements, efficiency projects and expansion of production capacity, particularly at the ARLP Partnerships River View mine.
Interest expense. Interest expense, net of capitalized interest, decreased to $7.6 million for the 2010 Quarter from $8.0 million for the 2009 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 partially offset by increased interest expense on the ARLP Partnerships $150.0 million revolving credit facility (ARLP Credit Facility), each of which are discussed in more detail below under Debt Obligations.
Segment Adjusted EBITDA. Our 2010 Quarter Segment Adjusted EBITDA increased $12.2 million, or 10.4%, to $129.6 million from the 2009 Quarter Segment Adjusted EBITDA of $117.4 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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