Coal producer Alliance Resource Partners LP (ARLP), Wednesday reported a higher profit for the fourth quarter, reflecting a decline in its operating expenses that offset reduction in revenue. Earnings per share came in higher than analysts expectations, but revenues missed estimates. The company also issued revenue and earnings guidance for the full year 2010.
Tulsa, Oklahoma-based Alliance net income of Alliance Resource rose to $41.74 million or $0.70 per share from $25.18 million or $0.31 per share for the same period last year. On average, eight analysts polled by Thomson Reuters expected the company to report earnings of $0.66 per share. Analysts' estimates typically exclude special items.
The company's operating income improved to $48.27 million from $31.64 million for the same period last year as total operating expenses came down to $249.91 million from $279.31 million a year earlier.
Total revenues declined by 4.1% to $298.18 million from $310.95 million for the prior year quarter. Six analysts expected revenues of $318.29 million.
Coal production volumes declined 3% year-on-year to 6.34 million tons, as the company adjusted its production to meet demand. Sales volumes dropped 6.12 million tons from 6.95 million tons for the year-ago period. The company's Illinois based operations, the largest production region of the company sold 4.71 million tons, 10.1% lower than 5.24 million for the year earlier same period.
Coal sales revenues dropped moderately to $282.36 million from $293.02 million as average coal sales prices increased 9.4% to $46.12 per ton sold from $42.15 for the prior year quarter.
For the full year 2009, net income of Alliance Resource rose to $192.16 million or $3.56 per share from $134.18 million or $2.39 per share for the year earlier period. Total revenues rose to $1.23 billion from $1.16 billion last year. Analysts expected $3.52 per share on revenues of 1.26 billion for the full year.
Looking forward to the full year 2010, the company expects Alliance Resource's revenues, excluding transportation revenues, to grow to a range of $1.47 billion to $1.55 billion. The forecast is based on current estimates for coal production, coal sales volumes and coal sales prices.
Further Alliance Resource estimates net income in a range of $240 to $270 million for 2010, indicating projected growth of approximately 25% to 40% , compared to 2009 and EBITDA is expected to be in the range of $410 to $450 million, 20% to 32% rise from last year.
Analysts expect the company to earn $3.94 per share on revenues of $1.44 billion for the full year 2010.
ARLP is currently trading at $40.63, down $0.80 or 1.93% on the Nasdaq.
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