Natural resource partners l.p. reports first quarter 2020 results
Houston--(business wire)--natural resource partners l.p. (nyse:nrp) today reported first quarter 2020 results as follows: for the three months ended last twelve months march 31, march 31, (in thousands) (unaudited) 2020 2019 2020 net income (loss) from continuing operations $ 18,779 $ 35,765 $ (42,400 ) asset impairments — — 148,214 net income from continuing operations excluding asset impairments $ 18,779 $ 35,765 $ 105,814 adjusted ebitda (1) 31,932 52,449 178,711 cash flow provided by (used in) continuing operations: operating activities 30,155 22,832 144,642 investing activities 272 697 7,796 financing activities (28,186 ) (99,852 ) (181,639 ) distributable cash flow (1) 30,361 23,139 152,155 free cash flow (1) 30,427 23,273 146,194 cash flow cushion (last twelve months) (1) 35,367 (1) see "non-gaap financial measures" and reconciliation tables at the end of this release. "nrp continues to employ remote work protocols and is conducting business as usual despite the covid-19 pandemic. our people are safe and leadership succession plans and delegations of authorities are in place if needed," said craig nunez, nrp's president and chief operating officer. "while the covid-19 pandemic did not have a material impact on our first quarter results, we are starting to see the effects of the declining demand for steel, electricity and soda ash on our business. we expect reduced demand will continue and that our results will be negatively impacted in the coming months. although we are unable to predict the severity or duration of the impact on our business, we believe our $200 million liquidity buffer and continued free cash flow generation will provide us with the financial flexibility and margin of safety necessary to manage through the downturn.” segment performance coal royalty and other revenues and other income in the first quarter of 2020 were lower by $21.4 million and distributable cash flow and free cash flow were $12.8 million and $12.5 million lower, respectively, as compared to the prior year period. this decrease is primarily a result of a weakened market for metallurgical coal as compared to the prior year period due to a decline in global steel demand. as a result, both sales volumes and prices for metallurgical coal sold were lower in the first quarter of 2020 compared to the prior year period. approximately 65% of coal royalty revenues and approximately 60% of coal royalty sales volumes were derived from metallurgical coal during the three months ended march 31, 2020. in addition, weaker domestic and export thermal coal markets compared to the prior year period resulted in lower revenue from our thermal coal properties. domestic and export thermal coal markets remained challenged by lower utility demand, continued low natural gas prices and the secular shift to renewable energy. a number of mines on nrp's properties have been temporarily idled as coal lessees face not only reduced demand but workforce safety concerns and supply chain disruptions due to the covid-19 pandemic. nrp believes that lessees who have idled mines will continue to sell coal from inventory, which should result in continued royalty payments to nrp over the near term. however, the pandemic has compounded already weak coal pricing and demand, and even those lessees who continue to operate are seeing significant negative impacts on their businesses. additionally, nrp's largest lessee, foresight energy, filed for bankruptcy in march 2020, and has continued to operate since the filing. foresight entered into agreements with its pre-petition lenders to support its restructuring plan process. in addition, foresight reached agreement with certain of its other key contract counterparties, including nrp, to enter into amendments to the counterparties’ agreements such that foresight will be able to implement its restructuring plan. soda ash ciner wyoming started to see the impact of the covid-19 pandemic on its operations towards the end of the first quarter in the form of slowing global demand and downward pricing pressure, and while ciner wyoming believes this did not have a material adverse effect on its first quarter results it will have a negative impact on subsequent quarters. revenues and other income in the first quarter of 2020 were lower by $5.4 million compared to the prior year quarter primarily due to lower international demand that resulted in lower international soda ash pricing and volumes sold. distributions received from ciner wyoming were $7.1 million in the first quarter of 2020 as compared to $9.8 million in the first quarter of 2019. the managing partner of ciner wyoming has reduced distributions to fund a multi-year capacity expansion project scheduled to begin later this year. prior to covid-19, plans were for nrp to receive approximately $25 million to $28 million of annual cash distributions from ciner wyoming until the project is completed. however, nrp is unable to predict the ultimate impact the covid-19 pandemic may have on future distributions. the extent and duration to which covid-19 will impact demand is highly uncertain and cannot be predicted with confidence at this time. ciner wyoming has focused on safety during this pandemic and is actively managing the business to maintain cash flow and believes it has enough liquidity to meet its anticipated liquidity requirements. corporate and financing corporate and financing costs were $4.3 million lower in the first quarter of 2020 compared to the prior year quarter primarily due to lower interest expense as a result of less debt outstanding. distributable cash flow and free cash flow were $22.4 million higher compared to the prior year quarter primarily due to the timing of interest payments on the parent company bonds that were refinanced in the second quarter of 2019. interest payments are due in june and december on the new 9.125% notes, compared to march and september on the previous 10.5% notes. for the first quarter of 2020, the board of directors of nrp's general partner decided to suspend the common unit distribution and pay-in-kind one-half of the preferred unit distribution in order to bolster cash reserves. conference call a conference call will be held today at 9:00 a.m. et. to join the conference call, dial (844) 583-4546 and provide the conference id 2146846. 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. 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) from continuing operations 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 (loss), 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 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) from continuing 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 (loss) for the three months ended march 31, december 31, (in thousands, except per unit data) 2020 2019 2019 revenues and other income coal royalty and other $ 31,433 $ 49,502 $ 37,032 transportation and processing services 2,509 5,601 4,539 equity in earnings of ciner wyoming 6,272 11,682 10,256 gain (loss) on asset sales and disposals — 256 (111 ) total revenues and other income $ 40,214 $ 67,041 $ 51,716 operating expenses operating and maintenance expenses $ 5,202 $ 8,360 $ 5,925 depreciation, depletion and amortization 2,012 4,392 3,186 general and administrative expenses 3,913 4,350 3,931 asset impairments — — 147,730 total operating expenses $ 11,127 $ 17,102 $ 160,772 income (loss) from operations $ 29,087 $ 49,939 $ (109,056 ) interest expense, net $ (10,308 ) $ (14,174 ) $ (10,392 ) net income (loss) from continuing operations $ 18,779 $ 35,765 $ (119,448 ) income (loss) from discontinued operations — (46 ) 750 net income (loss) $ 18,779 $ 35,719 $ (118,698 ) less: income attributable to preferred unitholders (7,500 ) (7,500 ) (7,500 ) net income (loss) attributable to common unitholders and general partner $ 11,279 $ 28,219 $ (126,198 ) net income (loss) attributable to common unitholders $ 11,053 $ 27,655 $ (123,674 ) net income (loss) attributable to the general partner 226 564 (2,524 ) income (loss) from continuing operations per common unit basic $ 0.90 $ 2.26 $ (10.15 ) diluted 0.52 1.75 (10.15 ) net income (loss) per common unit basic $ 0.90 $ 2.26 $ (10.09 ) diluted 0.52 1.75 (10.09 ) net income (loss) $ 18,779 $ 35,719 $ (118,698 ) comprehensive income (loss) from unconsolidated investment and other (1,023 ) 1,005 1,208 comprehensive income (loss) $ 17,756 $ 36,724 $ (117,490 ) natural resource partners l.p. financial tables (unaudited) consolidated statements of cash flows for the three months ended march 31, december 31, (in thousands) 2020 2019 2019 cash flows from operating activities net income (loss) $ 18,779 $ 35,719 $ (118,698 ) adjustments to reconcile net income (loss) to net cash provided by operating activities of continuing operations: depreciation, depletion and amortization 2,012 4,392 3,186 distributions from unconsolidated investment 7,105 9,800 6,370 equity earnings from unconsolidated investment (6,272 ) (11,682 ) (10,256 ) loss (gain) on asset sales and disposals — (256 ) 111 loss (income) from discontinued operations — 46 (750 ) asset impairments — — 147,730 bad debt expense (190 ) 10 620 unit-based compensation expense 729 901 519 amortization of debt issuance costs and other 448 1,796 464 change in operating assets and liabilities: accounts receivable (5,073 ) (4,937 ) (3,924 ) accounts payable 93 (616 ) (412 ) accrued liabilities (2,861 ) (6,164 ) 1,427 accrued interest 7,060 (10,033 ) (12,048 ) deferred revenue 8,265 4,534 3,188 other items, net 60 (678 ) 1,867 net cash provided by operating activities of continuing operations $ 30,155 $ 22,832 $ 19,394 net cash provided by (used in) operating activities of discontinued operations 1,706 121 (4 ) net cash provided by operating activities $ 31,861 $ 22,953 $ 19,390 cash flows from investing activities proceeds from asset sales and disposals $ — $ 256 $ (111 ) return of long-term contract receivable 272 441 392 acquisition of mineral rights — — (22 ) net cash provided by investing activities of continuing operations $ 272 $ 697 $ 259 net cash used in investing activities of discontinued operations (66 ) (390 ) (73 ) net cash provided by investing activities $ 206 $ 307 $ 186 cash flows from financing activities debt repayments $ (16,696 ) $ (86,468 ) $ (20,335 ) distributions to common unitholders and general partner (5,630 ) (5,625 ) (5,630 ) distributions to preferred unitholders (7,500 ) (7,500 ) (7,500 ) contributions from (to) discontinued operations 1,640 (269 ) (77 ) debt issuance costs and other — 10 (9 ) net cash used in financing activities of continuing operations $ (28,186 ) $ (99,852 ) $ (33,551 ) net cash provided by (used in) financing activities of discontinued operations (1,640 ) 269 77 net cash used in financing activities $ (29,826 ) $ (99,583 ) $ (33,474 ) net increase (decrease) in cash and cash equivalents $ 2,241 $ (76,323 ) $ (13,898 ) cash and cash equivalents at beginning of period 98,265 206,030 112,163 cash and cash equivalents at end of period $ 100,506 $ 129,707 $ 98,265 supplemental cash flow information: cash paid during the period for interest $ 3,039 $ 23,422 $ 22,327 natural resource partners l.p. financial tables (unaudited) consolidated balance sheets march 31, december 31, (in thousands, except unit data) 2020 2019 assets current assets cash and cash equivalents $ 100,506 $ 98,265 accounts receivable, net 34,113 30,869 prepaid expenses and other, net 1,166 1,244 current assets of discontinued operations — 1,706 total current assets $ 135,785 $ 132,084 land 24,008 24,008 mineral rights, net 603,208 605,096 intangible assets, net 17,607 17,687 equity in unconsolidated investment 261,224 263,080 long-term contract receivable, net 34,816 36,963 other assets, net 6,774 6,989 total assets $ 1,083,422 $ 1,085,907 liabilities and capital current liabilities accounts payable $ 1,272 $ 1,179 accrued liabilities 6,004 8,764 accrued interest 9,376 2,316 current portion of deferred revenue 6,021 4,608 current portion of long-term debt, net 45,767 45,776 current liabilities of discontinued operations — 65 total current liabilities $ 68,440 $ 62,708 deferred revenue 54,065 47,213 long-term debt, net 454,110 470,422 other non-current liabilities 4,804 4,949 total liabilities $ 581,419 $ 585,292 commitments and contingencies class a convertible preferred units (250,000 units issued and outstanding at $1,000 par value per unit; liquidation preference of $1,500 per unit) $ 164,587 $ 164,587 partners’ capital: common unitholders’ interest (12,261,199 units issued and outstanding at march 31, 2020 and december 31, 2019) $ 273,847 $ 271,471 general partner’s interest 3,305 3,270 warrant holders' interest 66,816 66,816 accumulated other comprehensive loss (3,617 ) (2,594 ) total partners’ capital $ 340,351 $ 338,963 non-controlling interest (2,935 ) (2,935 ) total capital $ 337,416 $ 336,028 total liabilities and capital $ 1,083,422 $ 1,085,907 natural resource partners l.p. financial tables (unaudited) consolidated statements of partners' capital 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 general partner — (5,517 ) (113 ) — — (5,630 ) — (5,630 ) distributions to preferred unitholders — (7,350 ) (150 ) — — (7,500 ) — (7,500 ) issuance of unit-based awards — — — — — — — — 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 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. 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, 2018 12,249 $ 355,113 $ 5,014 $ 66,816 $ (3,462 ) $ 423,481 $ (2,935 ) $ 420,546 net income (1) — 35,005 714 — — 35,719 — 35,719 distributions to common unitholders and general partner — (5,513 ) (112 ) — — (5,625 ) — (5,625 ) distributions to preferred unitholders — (7,350 ) (150 ) — — (7,500 ) — (7,500 ) issuance of unit-based awards 12 486 — — — 486 — 486 unit-based awards amortization and vesting — 399 — — — 399 — 399 comprehensive income from unconsolidated investment and other — — 10 — 1,005 1,015 — 1,015 balance at march 31, 2019 12,261 $ 378,140 $ 5,476 $ 66,816 $ (2,457 ) $ 447,975 $ (2,935 ) $ 445,040 (1) net income includes $7.5 million 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, 2020 and 2019 and december 31, 2019: operating segments coal royalty and other corporate and financing (in thousands) soda ash total 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) from continuing operations $ 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 march 31, 2019 revenues $ 55,103 $ 11,682 $ — $ 66,785 gain on asset sales and disposals 256 — — 256 total revenues and other income $ 55,359 $ 11,682 $ — $ 67,041 asset impairments $ — $ — $ — $ — net income (loss) from continuing operations $ 42,607 $ 11,682 $ (18,524 ) $ 35,765 adjusted ebitda (1) $ 46,999 $ 9,800 $ (4,350 ) $ 52,449 cash flow provided by (used in) continuing operations: operating activities $ 42,916 $ 9,800 $ (29,884 ) $ 22,832 investing activities $ 697 $ — $ — $ 697 financing activities $ — $ — $ (99,852 ) $ (99,852 ) distributable cash flow (1) (2) $ 43,613 $ 9,800 $ (29,884 ) $ 23,139 free cash flow (1) $ 43,357 $ 9,800 $ (29,884 ) $ 23,273 for the three months ended december 31, 2019 revenues $ 41,571 $ 10,256 $ — $ 51,827 loss on asset sales and disposals (111 ) — — (111 ) total revenues and other income $ 41,460 $ 10,256 $ — $ 51,716 asset impairments $ 147,730 $ — $ — $ 147,730 net income (loss) from continuing operations $ (115,355 ) $ 10,230 $ (14,323 ) $ (119,448 ) adjusted ebitda (1) $ 35,561 $ 6,344 $ (3,931 ) $ 37,974 cash flow provided by (used in) continuing operations: operating activities $ 39,042 $ 6,344 $ (25,992 ) $ 19,394 investing activities $ 259 $ — $ — $ 259 financing activities $ — $ — $ (33,551 ) $ (33,551 ) distributable cash flow (1) (2) $ 39,323 $ 6,344 $ (25,992 ) $ 19,602 free cash flow (1) $ 39,412 $ 6,344 $ (25,992 ) $ 19,764 (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) 2020 2019 2019 coal sales volumes (tons) appalachia northern (1) 327 859 686 central 2,933 3,422 2,908 southern 222 348 498 total appalachia 3,482 4,629 4,092 illinois basin 505 560 555 northern powder river basin 527 856 1,057 total coal sales volumes 4,514 6,045 5,704 coal royalty revenue per ton appalachia northern (1) $ 1.81 $ 4.71 $ 0.88 central 4.83 6.03 4.58 southern 4.16 8.61 5.96 illinois basin 4.35 4.77 4.53 northern powder river basin 4.13 2.61 2.33 combined average coal royalty revenue per ton 4.44 5.39 3.84 coal royalty revenues appalachia northern (1) $ 593 $ 4,045 $ 602 central 14,173 20,644 13,332 southern 923 2,997 2,965 total appalachia 15,689 27,686 16,899 illinois basin 2,199 2,670 2,516 northern powder river basin 2,177 2,231 2,462 unadjusted coal royalty revenues 20,065 32,587 $ 21,877 coal royalty adjustment for minimum leases (963 ) (456 ) 174 total coal royalty revenues $ 19,102 $ 32,131 $ 22,051 other revenues production lease minimum revenues $ 802 $ 2,700 $ 2,737 minimum lease straight-line revenues 3,809 3,316 3,758 property tax revenues 1,599 1,433 1,871 wheelage revenues 2,204 1,415 845 coal overriding royalty revenues 1,322 3,975 3,333 lease amendment revenues 843 771 1,271 aggregates royalty revenues 576 1,464 610 oil and gas royalty revenues 1,103 1,719 456 other revenues 73 578 100 total other revenues $ 12,331 $ 17,371 $ 14,981 coal royalty and other $ 31,433 $ 49,502 $ 37,032 transportation and processing services revenues 2,509 5,601 4,539 gain (loss) on asset sales and disposals — 256 (111 ) total coal royalty and other segment revenues and other income $ 33,942 $ 55,359 $ 41,460 (1) reconciliation of non-gaap measures (unaudited) adjusted ebitda coal royalty and other corporate and financing (in thousands) soda ash total for the three months ended march 31, 2020 net income (loss) from continuing operations $ 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 march 31, 2019 net income (loss) from continuing operations $ 42,607 $ 11,682 $ (18,524 ) $ 35,765 less: equity earnings from unconsolidated investment — (11,682 ) — (11,682 ) add: total distributions from unconsolidated investment — 9,800 — 9,800 add: interest expense, net — — 14,174 14,174 add: depreciation, depletion and amortization 4,392 — — 4,392 add: asset impairments — — — — adjusted ebitda $ 46,999 $ 9,800 $ (4,350 ) $ 52,449 for the three months ended december 31, 2019 net income (loss) from continuing operations $ (115,355 ) $ 10,230 $ (14,323 ) $ (119,448 ) less: equity earnings from unconsolidated investment — (10,256 ) — (10,256 ) add: total distributions from unconsolidated investment — 6,370 — 6,370 add: interest expense, net — — 10,392 10,392 add: depreciation, depletion and amortization 3,186 — — 3,186 add: asset impairments 147,730 — — 147,730 adjusted ebitda $ 35,561 $ 6,344 $ (3,931 ) $ 37,974 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, 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 less: expansion capital expenditures — — — — free cash flow $ 30,828 $ 7,089 $ (7,490 ) $ 30,427 for the three months ended march 31, 2019 net cash provided by (used in) operating activities of continuing operations $ 42,916 $ 9,800 $ (29,884 ) $ 22,832 add: proceeds from asset sales and disposals 256 — — 256 add: proceeds from sale of discontinued operations — — — (390 ) add: return of long-term contract receivable 441 — — 441 distributable cash flow $ 43,613 $ 9,800 $ (29,884 ) $ 23,139 less: proceeds from asset sales and disposals (256 ) — — (256 ) less: proceeds from sale of discontinued operations — — — 390 less: expansion capital expenditures — — — — free cash flow $ 43,357 $ 9,800 $ (29,884 ) $ 23,273 for the three months ended december 31, 2019 net cash provided by (used in) operating activities of continuing operations $ 39,042 $ 6,344 $ (25,992 ) $ 19,394 add: proceeds from asset sales and disposals (111 ) — — (111 ) add: proceeds from sale of discontinued operations — — — (73 ) add: return of long-term contract receivable 392 — — 392 distributable cash flow $ 39,323 $ 6,344 $ (25,992 ) $ 19,602 less: proceeds from asset sales and disposals 111 — — 111 less: proceeds from sale of discontinued operations — — — 73 less: expansion capital expenditures (22 ) — — (22 ) free cash flow $ 39,412 $ 6,344 $ (25,992 ) $ 19,764 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, 2019 september 30, 2019 december 31, 2019 march 31, 2020 last 12 months net cash provided by operating activities of continuing operations $ 53,359 $ 41,734 $ 19,394 $ 30,155 $ 144,642 add: proceeds from asset sales and disposals 247 6,108 (111 ) — 6,244 add: proceeds from sale of discontinued operations (44 ) (122 ) (73 ) (66 ) (305 ) add: return of long-term contract receivable 451 459 392 272 1,574 distributable cash flow $ 54,013 $ 48,179 $ 19,602 $ 30,361 $ 152,155 less: proceeds from asset sales and disposals (247 ) (6,108 ) 111 — (6,244 ) less: proceeds from sale of discontinued operations 44 122 73 66 305 less: expansion capital expenditures — — (22 ) — (22 ) free cash flow $ 53,810 $ 42,193 $ 19,764 $ 30,427 $ 146,194 add (less): free cash flow provided by (used by) discontinued operations 234 (359 ) (4 ) 1,706 1,577 free cash flow including discontinued operations $ 54,044 $ 41,834 $ 19,760 $ 32,133 $ 147,771 add (less): free cash flow used by (provided by) discontinued operations (234 ) 359 4 (1,706 ) (1,577 ) free cash flow excluding discontinued operations $ 53,810 $ 42,193 $ 19,764 $ 30,427 $ 146,194 less: mandatory opco debt repayments (2,365 ) (8,276 ) (20,335 ) (16,696 ) (47,672 ) less: preferred unit distributions (7,500 ) (7,500 ) (7,500 ) (7,500 ) (30,000 ) less: common unit distributions (16,265 ) (5,630 ) (5,630 ) (5,630 ) (33,155 ) cash flow cushion $ 27,680 $ 20,787 $ (13,701 ) $ 601 $ 35,367 leverage ratio for the three months ended (in thousands) june 30, 2019 september 30, 2019 december 31, 2019 march 31, 2020 last 12 months net income (loss) from continuing operations $ 19,106 $ 39,163 $ (119,448 ) $ 18,779 $ (42,400 ) less: equity earnings from unconsolidated investment (11,333 ) (13,818 ) (10,256 ) (6,272 ) (41,679 ) add: total distributions from unconsolidated investment 9,310 6,370 6,370 7,105 29,155 add: interest expense, net 12,456 10,431 10,392 10,308 43,587 add: loss on extinguishment of debt 29,282 — — — 29,282 add: depreciation, depletion and amortization 3,970 3,384 3,186 2,012 12,552 add: asset impairments — 484 147,730 — 148,214 adjusted ebitda $ 62,791 $ 46,014 $ 37,974 $ 31,932 $ 178,711 debt—at march 31, 2020 $ 507,359 leverage ratio (1) 2.8 x (1) leverage ratio is calculated as the outstanding principal of nrp's debt as of march 31, 2020 divided by the last twelve months' adjusted ebitda. 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, 2020 net income (loss) from continuing operations $ 5,348 $ 41,414 $ (89,162 ) $ (42,400 ) financing costs — — 74,851 74,851 return $ 5,348 $ 41,414 $ (14,311 ) $ 32,451 as of march 31, 2019 total assets of continuing operations $ 1,001,385 $ 249,936 $ 19,852 $ 1,271,173 less: total current liabilities of continuing operations excluding current debt (11,081 ) — (5,843 ) (16,924 ) less: total long-term liabilities of continuing operations excluding long-term debt (56,814 ) — (379 ) (57,193 ) capital employed excluding discontinued operations $ 933,490 $ 249,936 $ 13,630 $ 1,197,056 total partners' capital (1) $ 936,425 $ 249,936 $ (738,658 ) $ 447,975 less: non-controlling interest (2,935 ) — — (2,935 ) less: partners' capital from discontinued operations — — — (272 ) total partners' capital excluding discontinued operations $ 933,490 $ 249,936 $ (738,658 ) $ 444,768 class a convertible preferred units — — 164,587 164,587 debt — — 587,701 587,701 capital employed excluding discontinued operations $ 933,490 $ 249,936 $ 13,630 $ 1,197,056 roce excluding discontinued operations 0.6% 16.6% n/a 2.7% excluding asset impairments: return $ 5,348 $ 41,414 $ (14,311 ) $ 32,451 add: asset impairments 148,214 — — 148,214 return excluding asset impairments $ 153,562 $ 41,414 $ (14,311 ) $ 180,665 roce excluding discontinued operations and asset impairments 16.5% 16.6% n/a 15.1% (1) total partners' capital includes $0.3 million from discontinued operations. change in common unitholders' equity excluding asset impairments attributable to common unitholders (in thousands) q1 2020 common unitholders' equity $ 273,847 q1 2019 common unitholders' equity 378,140 ltm change in common unitholders' equity $ (104,293 ) ltm asset impairments $ 148,214 ltm asset impairments attributable to common unitholders $ 145,250 ltm change in common unitholders' equity excluding asset impairments attributable to common unitholders $ 40,957
