Natural resource partners l.p. reports first quarter 2021 results and declares first quarter 2021 distributions
Houston--(business wire)--natural resource partners l.p. (nyse:nrp) today reported first quarter 2021 results as follows: for the three months ended last twelve months march 31, march 31, (in thousands) (unaudited) 2021 2020 2021 net income (loss) $ 8,381 $ 18,779 $ (95,217 ) asset impairments 4,043 — 139,928 net income excluding asset impairments (1) $ 12,424 $ 18,779 $ 44,711 adjusted ebitda (1) 29,436 31,932 102,218 cash flow provided by (used in) continuing operations: operating activities 23,200 30,155 80,613 investing activities 600 272 2,073 financing activities (26,823 ) (28,186 ) (86,425 ) distributable cash flow (1) (2) 23,800 30,361 83,687 free cash flow (1) 23,741 30,427 82,004 cash flow cushion (last twelve months) (1) (3,731 ) ____________________ (1) see "non-gaap financial measures" and reconciliation tables at the end of this release. (2) includes net proceeds from the sale of the construction aggregates business which are classified as investing cash flow from discontinued operations. "growing demand for steel, glass and electricity continues to drive the rebound in our business segments from the negative impact of the covid-19 pandemic. the partnership’s demonstrated ability to generate free cash flow, reduce debt and maintain strong liquidity throughout the crisis has been noteworthy, and we expect these trends to continue," stated craig nunez, nrp's president and chief operating officer. nrp's liquidity was $196.8 million at march 31, 2021, consisting of $96.8 million of cash and $100.0 million of borrowing capacity available under its revolving credit facility. nrp announced today that the board of directors of its general partner declared a first quarter 2021 cash distribution of $0.45 per common unit of nrp to be paid on may 24, 2021 to unitholders of record on may 17, 2021. in addition, the board declared a $7.7 million distribution on the preferred units, which will be paid one-half in cash and one-half in kind through the issuance of additional preferred units. the preferred unit distribution includes interest on previously paid-in-kind units and will be paid one-half in cash and one-half in kind through the issuance of additional preferred units. segment performance coal royalty and other in the first quarter of 2021 net income decreased $6.3 million as compared to the prior year period primarily due to a $4.0 million non-cash asset impairment in the first quarter of 2021 related to an idled thermal coal property, as well as a $3.1 million increase in depletion expense due to increased coal production at certain properties. free cash flow was $4.3 million lower in the first quarter of 2021 as compared to the prior year period primarily as a result of lease amendment fee payments received in the first quarter of 2020. approximately 50% of coal royalty revenues and approximately 40% of coal royalty sales volumes were derived from metallurgical coal in the first quarter of 2021. metallurgical coal markets remain challenged by the uncertainties around the covid-19 pandemic, however prices have rebounded from the lows seen in the second quarter of 2020 and the outlook continues to strengthen. domestic and export thermal coal markets continue to stabilize, but still face ongoing negative effects of the covid-19 pandemic and the long-term challenges of lower utility demand, low natural gas prices, and the secular shift to renewable energy. however, nrp does not have significant sensitivity to thermal coal price movements this year since the substantial majority of nrp's thermal cash flows are fixed pursuant to a contract with foresight energy that went into effect as they emerged from bankruptcy last year. soda ash net income in the first quarter of 2021 was lower by $4.3 million as compared to the prior year period primarily as a result of lower sales prices due to demand disruptions caused by the covid-19 pandemic. nrp received $3.9 million in cash distributions from ciner wyoming in the first quarter of 2021 as compared to $7.1 million in cash distributions in the prior year period. as previously stated, in august of 2020, ciner wyoming decided to suspend its quarterly distributions in an effort to achieve greater financial and liquidity flexibility as a result of covid-19. while nrp did receive a special $3.9 million distribution from ciner wyoming during the quarter, nrp does not expect ciner wyoming to resume regular cash distributions until they have greater visibility and confidence in the sustainability of the continuing improvement in global soda ash demand. ciner wyoming’s ability to pay future quarterly distributions will be dependent in part on its cash reserves, liquidity, total debt levels and anticipated capital expenditures. nrp believes ciner wyoming's facility is competitively positioned as one of the lowest cost producers of soda ash in the world, however, nrp expects the market to remain volatile as a result of ongoing uncertainties with covid-19. corporate and financing corporate and financing costs in the first quarter of 2021 were relatively flat as compared to the prior year period as increases in certain costs, such as insurance, were offset by a reduction in controllable costs as a result of nrp's cost saving initiatives. free cash flow improved $0.8 million in the first quarter of 2021 as compared to the prior year period primarily due to lower cash paid for interest as a result of less debt outstanding in 2021. as noted earlier, nrp declared a first quarter 2021 preferred unit distribution of $7.7 million which will be paid one-half in cash and one-half in kind. the indenture governing the 2025 parent company notes restricts nrp from paying more than one-half of the quarterly distribution on the preferred units in cash if nrp's consolidated leverage ratio exceeds 3.75x, and as of march 31, 2021, nrp's leverage ratio was 4.5x. nrp expects its leverage ratio to continue to rise through the second quarter of 2021 and then begin a sustained long-term decline as nrp continues to pay down debt. under the terms of the partnership agreement, if nrp’s consolidated leverage ratio remains above 3.75x into 2022 and nrp remains unable to redeem any outstanding paid-in-kind preferred units, nrp would be required to temporarily suspend distributions on its common units until the leverage ratio drops below 3.75x and the outstanding paid-in-kind preferred units are redeemed. future distributions on nrp's common and preferred units will be determined on a quarterly basis by the board of directors. the board of directors considers numerous factors each quarter in determining cash distributions, including profitability, cash flow, debt service obligations, market conditions and outlook, estimated unitholder income tax liability and the level of cash reserves that the board determines is necessary for future operating and capital needs. conference call a conference call will be held today at 9:00 a.m. et. to register for the conference call, please use this link https://www.incommglobalevents.com/registration/client/7437/natural-resource-partners-lp-first-quarter-2021-earnings-call/. after registering a confirmation will be sent via email, including dial in details and unique conference call codes for entry. registration is open through the live call, however, to ensure you are connected for the full call we suggest registering at least 10 minutes prior to the start of the call. investors may also listen to the call via the investor relations section of the nrp website at www.nrplp.com. to access the replay, please visit the investor relations section of nrp’s website. withholding information for foreign investors this release is intended to be a qualified notice under treasury regulation section 1.1446-4(b). brokers and nominees should treat one hundred percent (100.0%) of nrp's distributions to foreign investors as being attributable to income that is effectively connected with a united states trade or business. accordingly, nrp's distributions to foreign investors are subject to federal income tax withholding at the highest applicable rate. company profile natural resource partners l.p., a master limited partnership headquartered in houston, tx, is a diversified natural resource company that owns, manages and leases a diversified portfolio of mineral properties in the united states including interests in coal, industrial minerals and other natural resources. in addition, nrp owns an equity investment in ciner wyoming llc, a trona ore mining and soda ash production business. for additional information, please contact tiffany sammis at 713-751-7515 or tsammis@nrplp.com. further information about nrp is available on the partnership’s website at http://www.nrplp.com. forward-looking statements this press release includes “forward-looking statements” as defined by the securities and exchange commission. all statements, other than statements of historical facts, included in this press release that address activities, events or developments that the partnership expects, believes or anticipates will or may occur in the future are forward-looking statements. these statements are based on certain assumptions made by the partnership based on its experience and perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances. such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the partnership. these risks include, among other things, statements regarding: the effects of the global covid-19 pandemic; future distributions on the partnership’s common and preferred units; the partnership's business strategy; its liquidity and access to capital and financing sources; its financial strategy; prices of and demand for coal, trona and soda ash, and other natural resources; estimated revenues, expenses and results of operations; projected future performance by the partnership's lessees, including foresight energy; ciner wyoming llc’s trona mining and soda ash refinery operations; distributions from the soda ash joint venture; the impact of governmental policies, laws and regulations, as well as regulatory and legal proceedings involving the partnership, and of scheduled or potential regulatory or legal changes; global and u.s. economic conditions; and other factors detailed in natural resource partners’ securities and exchange commission filings. natural resource partners l.p. has no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. non-gaap financial measures "adjusted ebitda" is a non-gaap financial measure that we define as net income (loss) less equity earnings from unconsolidated investment, net income attributable to non-controlling interest and gain on reserve swap; plus total distributions from unconsolidated investment, interest expense, net, debt modification expense, loss on extinguishment of debt, depreciation, depletion and amortization and asset impairments. adjusted ebitda should not be considered an alternative to, or more meaningful than, net income or loss, net income or loss attributable to partners, operating income or loss, cash flows from operating activities or any other measure of financial performance presented in accordance with gaap as measures of operating performance, liquidity or ability to service debt obligations. there are significant limitations to using adjusted ebitda as a measure of performance, including the inability to analyze the effect of certain recurring items that materially affect our net income, the lack of comparability of results of operations of different companies and the different methods of calculating adjusted ebitda reported by different companies. in addition, adjusted ebitda presented below is not calculated or presented on the same basis as consolidated ebitda as defined in our partnership agreement or consolidated ebitdda as defined in opco's debt agreements. adjusted ebitda is a supplemental performance measure used by our management and by external users of our financial statements, such as investors, commercial banks, research analysts and others to assess the financial performance of our assets without regard to financing methods, capital structure or historical cost basis. “distributable cash flow” or "dcf" is a non-gaap financial measure that we define as net cash provided by (used in) operating activities of continuing operations plus distributions from unconsolidated investment in excess of cumulative earnings, proceeds from asset sales and disposals, including sales of discontinued operations, and return of long-term contract receivable; less maintenance capital expenditures and distributions to non-controlling interest. dcf is not a measure of financial performance under gaap and should not be considered as an alternative to cash flows from operating, investing or financing activities. dcf may not be calculated the same for us as for other companies. in addition, distributable cash flow is not calculated or presented on the same basis as distributable cash flow as defined in our partnership agreement, which is used as a metric to determine whether we are able to increase quarterly distributions to our common unitholders. distributable cash flow is a supplemental liquidity measure used by our management and by external users of our financial statements, such as investors, commercial banks, research analysts and others to assess our ability to make cash distributions and repay debt. “free cash flow” or "fcf" is a non-gaap financial measure that we define as net cash provided by (used in) operating activities of continuing operations plus distributions from unconsolidated investment in excess of cumulative earnings and return of long-term contract receivable; less maintenance and expansion capital expenditures, cash flow used in acquisition costs classified as investing or financing activities and distributions to non-controlling interest. fcf is calculated before mandatory debt repayments. free cash flow is not a measure of financial performance under gaap and should not be considered as an alternative to cash flows from operating, investing or financing activities. free cash flow may not be calculated the same for us as for other companies. free cash flow is a supplemental liquidity measure used by our management and by external users of our financial statements, such as investors, commercial banks, research analysts and others to assess our ability to make cash distributions and repay debt. "cash flow cushion" is a non-gaap financial measure that we define as free cash flow less one-time beneficial items, mandatory opco debt repayments, preferred unit distributions and common unit distributions. cash flow cushion is not a measure of financial performance under gaap and should not be considered as an alternative to cash flows from operating, investing or financing activities. cash flow cushion is a supplemental liquidity measure used by our management to assess the partnership's ability to make or raise cash distributions to our common and preferred unitholders and our general partner and repay debt or redeem preferred units. "return on capital employed" or "roce" is a non-gaap financial measure that we define as net income (loss) operations plus financing costs (interest expense plus loss on extinguishment of debt) divided by the sum of equity excluding equity of discontinued operations, and debt. return on capital employed should not be considered an alternative to, or more meaningful than, net income or loss, net income or loss attributable to partners, operating income or loss, cash flows from operating activities or any other measure of financial performance presented in accordance with gaap as measures of operating performance, liquidity or ability to service debt obligations. return on capital employed is a supplemental performance measure used by our management team that measures our profitability and efficiency with which our capital is employed. the measure provides an indication of operating performance before the impact of leverage in the capital structure. -financial tables and reconciliation of non-gaap measures follow- natural resource partners l.p. financial tables (unaudited) consolidated statements of comprehensive income for the three months ended march 31, december 31, (in thousands, except per unit data) 2021 2020 2020 revenues and other income coal royalty and other $ 32,927 $ 31,433 $ 31,327 transportation and processing services 2,192 2,509 2,194 equity in earnings of ciner wyoming 1,973 6,272 5,528 gain on asset sales and disposals 59 — 116 total revenues and other income $ 37,151 $ 40,214 $ 39,165 operating expenses operating and maintenance expenses $ 5,552 $ 5,202 $ 5,595 depreciation, depletion and amortization 5,092 2,012 3,013 general and administrative expenses 4,110 3,913 3,125 asset impairments 4,043 — 2,668 total operating expenses $ 18,797 $ 11,127 $ 14,401 income from operations $ 18,354 $ 29,087 $ 24,764 interest expense, net $ (9,973 ) $ (10,308 ) $ (10,077 ) net income $ 8,381 $ 18,779 $ 14,687 less: income attributable to preferred unitholders (7,727 ) (7,500 ) (7,612 ) net income attributable to common unitholders and the general partner $ 654 $ 11,279 $ 7,075 net income attributable to common unitholders $ 641 $ 11,053 $ 6,934 net income attributable to the general partner 13 226 141 net income per common unit basic $ 0.05 $ 0.90 $ 0.57 diluted 0.05 0.52 0.56 net income $ 8,381 $ 18,779 $ 14,687 comprehensive income (loss) from unconsolidated investment and other 732 (1,023 ) 152 comprehensive income $ 9,113 $ 17,756 14,839 natural resource partners l.p. financial tables (unaudited) consolidated statements of cash flows for the three months ended march 31, december 31, (in thousands) 2021 2020 2020 cash flows from operating activities net income $ 8,381 $ 18,779 $ 14,687 adjustments to reconcile net income to net cash provided by operating activities of continuing operations: depreciation, depletion and amortization 5,092 2,012 3,013 distributions from unconsolidated investment 3,920 7,105 — equity earnings from unconsolidated investment (1,973 ) (6,272 ) (5,528 ) gain on asset sales and disposals (59 ) — (116 ) asset impairments 4,043 — 2,668 bad debt expense 383 (190 ) 86 unit-based compensation expense 1,126 729 1,004 amortization of debt issuance costs and other 269 448 832 change in operating assets and liabilities: accounts receivable (3,331 ) (5,073 ) 4,859 accounts payable (10 ) 93 14 accrued liabilities (3,034 ) (2,861 ) 780 accrued interest 7,133 7,060 (7,559 ) deferred revenue (146 ) 8,265 (461 ) other items, net 1,406 60 (1,124 ) net cash provided by operating activities of continuing operations $ 23,200 $ 30,155 $ 13,155 net cash provided by operating activities of discontinued operations — 1,706 — net cash provided by operating activities $ 23,200 $ 31,861 $ 13,155 cash flows from investing activities proceeds from asset sales and disposals $ 59 $ — $ 116 return of long-term contract receivable 541 272 660 net cash provided by investing activities of continuing operations $ 600 $ 272 $ 776 net cash provided by (used in) investing activities of discontinued operations — (66 ) 1 net cash provided by investing activities $ 600 $ 206 $ 777 cash flows from financing activities debt repayments $ (16,696 ) $ (16,696 ) $ (20,335 ) distributions to common unitholders and general partner (5,630 ) (5,630 ) (5,630 ) distributions to preferred unitholders (3,806 ) (7,500 ) (3,750 ) contributions from discontinued operations — 1,640 1 debt issuance costs and other (691 ) — — net cash used in financing activities of continuing operations $ (26,823 ) $ (28,186 ) $ (29,714 ) net cash used in financing activities of discontinued operations — (1,640 ) (1 ) net cash used in financing activities $ (26,823 ) $ (29,826 ) $ (29,715 ) net increase (decrease) in cash and cash equivalents $ (3,023 ) $ 2,241 $ (15,783 ) cash and cash equivalents at beginning of period 99,790 98,265 115,573 cash and cash equivalents at end of period $ 96,767 $ 100,506 $ 99,790 supplemental cash flow information: cash paid for interest $ 2,320 $ 3,039 $ 17,118 non-cash investing and financing activities: plant, equipment, mineral rights and other funded with accounts payable or accrued liabilities $ 992 $ — $ — preferred unit distributions paid-in-kind 3,806 — 3,750 natural resource partners l.p. financial tables consolidated balance sheets march 31, december 31, (in thousands, except unit data) 2021 2020 (unaudited) assets current assets cash and cash equivalents $ 96,767 $ 99,790 accounts receivable, net 15,920 12,322 other current assets, net 3,021 5,080 total current assets $ 115,708 $ 117,192 land 24,008 24,008 mineral rights, net 451,610 460,373 intangible assets, net 17,131 17,459 equity in unconsolidated investment 261,299 262,514 long-term contract receivable, net 32,726 33,264 other long-term assets, net 6,678 7,067 total assets $ 909,160 $ 921,877 liabilities and capital current liabilities accounts payable $ 1,375 $ 1,385 accrued liabilities 4,853 7,733 accrued interest 8,847 1,714 current portion of deferred revenue 10,555 11,485 current portion of long-term debt, net 39,042 39,055 total current liabilities $ 64,672 $ 61,372 deferred revenue 50,853 50,069 long-term debt, net 416,121 432,444 other non-current liabilities 4,730 5,131 total liabilities $ 536,376 $ 549,016 commitments and contingencies class a convertible preferred units (257,556 and 253,750 units issued and outstanding at march 31, 2021 and december 31, 2020, respectively, at $1,000 par value per unit; liquidation preference of $1,850 per unit at march 31, 2021 and $1,700 per unit at december 31, 2020) $ 172,143 $ 168,337 partners’ capital: common unitholders’ interest (12,351,306 and 12,261,199 units issued and outstanding at march 31, 2021 and december 31, 2020, respectively) $ 132,377 $ 136,927 general partner’s interest 394 459 warrant holders' interest 66,816 66,816 accumulated other comprehensive income 1,054 322 total partners’ capital $ 200,641 $ 204,524 total liabilities and capital $ 909,160 $ 921,877 natural resource partners l.p. financial tables (unaudited) consolidated statements of partners' capital common unitholders general partner warrant holders accumulated other comprehensive income partners' capital excluding non- controlling interest non- controlling interest total capital (in thousands) units amounts balance at december 31, 2020 12,261 $ 136,927 $ 459 $ 66,816 $ 322 $ 204,524 $ — $ 204,524 net loss (1) — 8,213 168 — — 8,381 — 8,381 distributions to common unitholders and the general partner — (5,517 ) (113 ) — — (5,630 ) — (5,630 ) distributions to preferred unitholders — (7,461 ) (152 ) — — (7,613 ) — (7,613 ) issuance of unit-based awards 90 — — — — — — — unit-based awards amortization and vesting, net — 215 — — — 215 — 215 capital contribution — — 32 — — 32 — 32 comprehensive income from unconsolidated investment and other — — — — 732 732 — 732 balance at march 31, 2021 12,351 $ 132,377 $ 394 $ 66,816 $ 1,054 $ 200,641 $ — $ 200,641 ____________________ (1) net income includes $7.727 million of income attributable to preferred unitholders that accumulated during the period, of which $7.572 million is allocated to the common unitholders and $0.155 million is allocated to the general partner. common unitholders general partner warrant holders accumulated other comprehensive loss partners' capital excluding non- controlling interest non- controlling interest total capital (in thousands) units amounts balance at december 31, 2019 12,261 $ 271,471 $ 3,270 $ 66,816 $ (2,594 ) $ 338,963 $ (2,935 ) $ 336,028 cumulative effect of adoption of accounting standard — (3,833 ) (78 ) — — (3,911 ) — (3,911 ) net income (1) — 18,403 376 — — 18,779 — 18,779 distributions to common unitholders and the general partner — (5,517 ) (113 ) — — (5,630 ) — (5,630 ) distributions to preferred unitholders — (7,350 ) (150 ) — — (7,500 ) — (7,500 ) unit-based awards amortization and vesting — 673 — — — 673 — 673 comprehensive loss from unconsolidated investment and other — — — — (1,023 ) (1,023 ) — (1,023 ) balance at march 31, 2020 12,261 $ 273,847 $ 3,305 $ 66,816 $ (3,617 ) $ 340,351 $ (2,935 ) $ 337,416 ____________________ (1) net income includes $7.5 million of income attributable to preferred unitholders that accumulated during the period, of which $7.35 million is allocated to the common unitholders and $0.15 million is allocated to the general partner. natural resource partners l.p. financial tables (unaudited) the following tables present nrp's unaudited business results by segment for the three months ended march 31, 2021 and 2020 and december 31, 2020: operating business segments coal royalty and other corporate and financing (in thousands) soda ash total for the three months ended march 31, 2021 revenues $ 35,119 $ 1,973 $ — $ 37,092 gain on asset sales and disposals 59 — — 59 total revenues and other income $ 35,178 $ 1,973 $ — $ 37,151 asset impairments $ 4,043 $ — $ — $ 4,043 net income (loss) $ 20,488 $ 1,953 $ (14,060 ) $ 8,381 adjusted ebitda (1) $ 29,646 $ 3,900 $ (4,110 ) $ 29,436 cash flow provided by (used in) continuing operations: operating activities $ 25,962 $ 3,888 $ (6,650 ) $ 23,200 investing activities $ 600 $ — $ — $ 600 financing activities $ (132 ) $ — $ (26,691 ) $ (26,823 ) distributable cash flow (1) (2) $ 26,562 $ 3,888 $ (6,650 ) $ 23,800 free cash flow (1) $ 26,503 $ 3,888 $ (6,650 ) $ 23,741 for the three months ended march 31, 2020 revenues $ 33,942 $ 6,272 $ — $ 40,214 gain on asset sales and disposals — — — — total revenues and other income $ 33,942 $ 6,272 $ — $ 40,214 asset impairments $ — $ — $ — $ — net income (loss) $ 26,744 $ 6,256 $ (14,221 ) $ 18,779 adjusted ebitda (1) $ 28,756 $ 7,089 $ (3,913 ) $ 31,932 cash flow provided by (used in) continuing operations: operating activities $ 30,556 $ 7,089 $ (7,490 ) $ 30,155 investing activities $ 272 $ — $ — $ 272 financing activities $ — $ — $ (28,186 ) $ (28,186 ) distributable cash flow (1) (2) $ 30,828 $ 7,089 $ (7,490 ) $ 30,361 free cash flow (1) $ 30,828 $ 7,089 $ (7,490 ) $ 30,427 for the three months ended december 31, 2020 revenues $ 33,521 $ 5,528 $ — $ 39,049 gain on asset sales and disposals 116 — — 116 total revenues and other income $ 33,637 $ 5,528 $ — $ 39,165 asset impairments $ 2,668 $ — $ — $ 2,668 net income (loss) $ 22,382 $ 5,484 $ (13,179 ) $ 14,687 adjusted ebitda (1) $ 28,086 $ (44 ) $ (3,125 ) $ 24,917 cash flow provided by (used in) continuing operations: operating activities $ 33,655 $ (54 ) $ (20,446 ) $ 13,155 investing activities $ 776 $ — $ — $ 776 financing activities $ — $ — $ (29,714 ) $ (29,714 ) distributable cash flow (1) (2) $ 34,431 $ (54 ) $ (20,446 ) $ 13,932 free cash flow (1) $ 34,315 $ (54 ) $ (20,446 ) $ 13,815 ____________________ (1) see "non-gaap financial measures" and reconciliation tables at the end of this release. (2) includes net proceeds from the sale of the construction aggregates business which are classified as investing cash flow from discontinued operations. natural resource partners l.p. financial tables (unaudited) operating statistics - coal royalty and other for the three months ended march 31, december 31, (in thousands, except per ton data) 2021 2020 2020 coal sales volumes (tons) appalachia northern (1) 120 327 131 central 2,650 2,933 2,468 southern 100 222 69 total appalachia 2,870 3,482 2,668 illinois basin 2,658 505 1,540 northern powder river basin 1,059 527 506 total coal sales volumes 6,587 4,514 4,714 coal royalty revenue per ton appalachia northern (1) $ 3.64 $ 1.81 $ 2.92 central 4.22 4.83 3.84 southern 5.28 4.16 5.28 illinois basin 2.06 4.35 2.21 northern powder river basin 3.37 4.13 3.11 combined average coal royalty revenue per ton 3.22 4.44 3.23 coal royalty revenues appalachia northern (1) $ 437 $ 593 $ 383 central 11,195 14,173 9,481 southern 528 923 364 total appalachia 12,160 15,689 10,228 illinois basin 5,483 2,199 3,403 northern powder river basin 3,573 2,177 1,576 unadjusted coal royalty revenues 21,216 20,065 $ 15,207 coal royalty adjustment for minimum leases (2) (5,851 ) (963 ) (3,898 ) total coal royalty revenues $ 15,365 $ 19,102 $ 11,309 other revenues production lease minimum revenues (2) $ 3,450 $ 802 $ 8,195 minimum lease straight-line revenues (2) 6,096 3,809 4,447 property tax revenues 1,469 1,599 1,530 wheelage revenues 1,781 2,204 1,557 coal overriding royalty revenues 1,859 1,322 1,658 lease amendment revenues 868 843 859 aggregates royalty revenues 454 576 649 oil and gas royalty revenues 1,366 1,103 893 other revenues 219 73 230 total other revenues $ 17,562 $ 12,331 $ 20,018 coal royalty and other $ 32,927 $ 31,433 $ 31,327 transportation and processing services revenues 2,192 2,509 2,194 gain on asset sales and disposals 59 — 116 total coal royalty and other segment revenues and other income $ 35,178 $ 33,942 $ 33,637 ____________________ (1) northern appalachia includes nrp's hibbs run property that has significant sales volumes, but a low fixed rate per ton. (2) beginning april 1, 2020 and effective january 1, 2020, certain revenues previously classified as coal royalty revenues are classified as production lease minimum revenues or minimum lease straight-line revenues due to contract modifications with foresight energy resources llc that fixed consideration paid to us over a two-year period. natural resource partners l.p. financial tables (unaudited) adjusted ebitda coal royalty and other corporate and financing (in thousands) soda ash total for the three months ended march 31, 2021 net income (loss) $ 20,488 $ 1,953 $ (14,060 ) $ 8,381 less: equity earnings from unconsolidated investment — (1,973 ) — (1,973 ) add: total distributions from unconsolidated investment — 3,920 — 3,920 add: interest expense, net 23 — 9,950 9,973 add: depreciation, depletion and amortization 5,092 — — 5,092 add: asset impairments 4,043 — — 4,043 adjusted ebitda $ 29,646 $ 3,900 $ (4,110 ) $ 29,436 for the three months ended march 31, 2020 net income (loss) $ 26,744 $ 6,256 $ (14,221 ) $ 18,779 less: equity earnings from unconsolidated investment — (6,272 ) — (6,272 ) add: total distributions from unconsolidated investment — 7,105 — 7,105 add: interest expense, net — — 10,308 10,308 add: depreciation, depletion and amortization 2,012 — — 2,012 add: asset impairments — — — — adjusted ebitda $ 28,756 $ 7,089 $ (3,913 ) $ 31,932 for the three months ended december 31, 2020 net income (loss) $ 22,382 $ 5,484 $ (13,179 ) $ 14,687 less: equity earnings from unconsolidated investment — (5,528 ) — (5,528 ) add: total distributions from unconsolidated investment — — — — add: interest expense, net 23 — 10,054 10,077 add: depreciation, depletion and amortization 3,013 — — 3,013 add: asset impairments 2,668 — — 2,668 adjusted ebitda $ 28,086 $ (44 ) $ (3,125 ) $ 24,917 natural resource partners l.p. reconciliation of non-gaap measures (unaudited) distributable cash flow and free cash flow coal royalty and other corporate and financing (in thousands) soda ash total for the three months ended march 31, 2021 net cash provided by (used in) operating activities of continuing operations $ 25,962 $ 3,888 $ (6,650 ) $ 23,200 add: proceeds from asset sales and disposals 59 — — 59 add: proceeds from sale of discontinued operations — — — — add: return of long-term contract receivable 541 — — 541 distributable cash flow $ 26,562 $ 3,888 $ (6,650 ) $ 23,800 less: proceeds from asset sales and disposals (59 ) — — (59 ) less: proceeds from sale of discontinued operations — — — — free cash flow $ 26,503 $ 3,888 $ (6,650 ) $ 23,741 for the three months ended march 31, 2020 net cash provided by (used in) operating activities of continuing operations $ 30,556 $ 7,089 $ (7,490 ) $ 30,155 add: proceeds from asset sales and disposals — — — — add: proceeds from sale of discontinued operations — — — (66 ) add: return of long-term contract receivable 272 — — 272 distributable cash flow $ 30,828 $ 7,089 $ (7,490 ) $ 30,361 less: proceeds from asset sales and disposals — — — — less: proceeds from sale of discontinued operations — — — 66 free cash flow $ 30,828 $ 7,089 $ (7,490 ) $ 30,427 for the three months ended december 31, 2020 net cash provided by (used in) operating activities of continuing operations $ 33,655 $ (54 ) $ (20,446 ) $ 13,155 add: proceeds from asset sales and disposals 116 — — 116 add: proceeds from sale of discontinued operations — — — 1 add: return of long-term contract receivables 660 — — 660 distributable cash flow $ 34,431 $ (54 ) $ (20,446 ) $ 13,932 less: proceeds from sale of assets (116 ) — — (116 ) less: proceeds from sale of discontinued operations — — — (1 ) free cash flow $ 34,315 $ (54 ) $ (20,446 ) $ 13,815 natural resource partners l.p. reconciliation of non-gaap measures (unaudited) ltm free cash flow and cash flow cushion for the three months ended (in thousands) june 30, 2020 september 30, 2020 december 31, 2020 march 31, 2021 last 12 months net cash provided by operating activities of continuing operations $ 19,935 $ 24,323 $ 13,155 $ 23,200 $ 80,613 add: proceeds from asset sales and disposals 507 — 116 59 682 add: proceeds from sale of discontinued operations — — 1 — 1 add: return of long-term contract receivable 858 332 660 541 2,391 distributable cash flow $ 21,300 $ 24,655 $ 13,932 $ 23,800 $ 83,687 less: proceeds from asset sales and disposals (507 ) — (116 ) (59 ) (682 ) less: proceeds from sale of discontinued operations — — (1 ) — (1 ) less: acquisition costs (1,000 ) — — — (1,000 ) free cash flow $ 19,793 $ 24,655 $ 13,815 $ 23,741 $ 82,004 less: mandatory opco debt repayments (2,365 ) (6,780 ) (20,335 ) (16,696 ) (46,176 ) less: preferred unit distributions (7,613 ) (7,500 ) (3,750 ) (3,806 ) (22,669 ) less: common unit distributions — (5,630 ) (5,630 ) (5,630 ) (16,890 ) cash flow cushion $ 9,815 $ 4,745 $ (15,900 ) $ (2,391 ) $ (3,731 ) leverage ratio for the three months ended (in thousands) june 30, 2020 september 30, 2020 december 31, 2020 march 31, 2021 last 12 months net income (loss) $ (125,501 ) $ 7,216 $ 14,687 $ 8,381 $ (95,217 ) less: equity earnings from unconsolidated investment 3,058 (1,986 ) (5,528 ) (1,973 ) (6,429 ) add: total distributions from unconsolidated investment 7,105 — — 3,920 11,025 add: interest expense, net 10,329 10,254 10,077 9,973 40,633 add: depreciation, depletion and amortization 2,062 2,111 3,013 5,092 12,278 add: asset impairments 132,283 934 2,668 4,043 139,928 adjusted ebitda $ 29,336 $ 18,529 $ 24,917 $ 29,436 $ 102,218 debt—at march 31, 2021 $ 461,183 leverage ratio (1) 4.5 x ____________________ (1) leverage ratio is calculated as the outstanding principal of nrp's debt as of march 31, 2021 divided by the last twelve months' adjusted ebitda. note that adjusted ebitda under the indenture governing nrp's 2025 parent company notes may be different than the amount shown above. however, nrp's last twelve months leverage ratio as of march 31, 2021, was 4.5x as calculated under the indenture governing nrp's 2025 parent company notes. natural resource partners l.p. reconciliation of non-gaap measures (unaudited) return on capital employed ("roce") coal royalty and other corporate and financing (in thousands) soda ash total ltm ended march 31, 2021 net income (loss) $ (46,436 ) $ 6,240 $ (55,021 ) $ (95,217 ) financing costs 102 — 40,615 40,717 return $ (46,334 ) $ 6,240 $ (14,406 ) $ (54,500 ) as of march 31, 2020 total assets of continuing operations $ 817,463 $ 261,224 $ 4,735 $ 1,083,422 less: total current liabilities of continuing operations excluding current debt (11,935 ) — (10,738 ) (22,673 ) less: total long-term liabilities of continuing operations excluding long-term debt (58,460 ) — (409 ) (58,869 ) capital employed excluding discontinued operations $ 747,068 $ 261,224 $ (6,412 ) $ 1,001,880 partners' capital $ 750,003 $ 261,224 $ (670,876 ) $ 340,351 less: non-controlling interest (2,935 ) — — (2,935 ) total partners' capital $ 747,068 $ 261,224 $ (670,876 ) $ 337,416 class a convertible preferred units — — 164,587 164,587 debt — — 499,877 499,877 capital employed $ 747,068 $ 261,224 $ (6,412 ) $ 1,001,880 roce (6.2 )% 2.4 % n/a (5.4 )% excluding asset impairments: return $ (46,334 ) $ 6,240 $ (14,406 ) $ (54,500 ) add: asset impairments 139,928 — — 139,928 return excluding asset impairments $ 93,594 $ 6,240 $ (14,406 ) $ 85,428 roce excluding asset impairments 12.5 % 2.4 % n/a 8.5 %
