| Segment Information |
The Company has a portfolio of operating mines and development projects in Queensland, Australia, and in the states of Pennsylvania, Virginia and West Virginia in the U.S. The operations in Australia, or Australian Operations, comprise the 100%-owned Curragh producing mine complex. The operations in the United States, or U.S. Operations, comprise two 100%-owned producing mine complexes (Buchanan and Logan), one owned idled mine complex (Greenbrier) and two development properties (Mon Valley and Russell County). The Company operates its business along two reportable segments: Australia and the United States. The two reportable segments reflects how the Company’s chief operating decision maker, or CODM, manages and allocates resources to the various components of the Company’s business. The CODM uses Adjusted EBITDA as the primary metric to measure each segment’s operating performance. Adjusted EBITDA is not a measure of financial performance in accordance with U.S. GAAP. Investors should be aware that the Company’s presentation of Adjusted EBITDA may not be comparable to similarly titled financial measures used by other companies. Adjusted EBITDA is defined as earnings before interest, taxes, depreciation, depletion and amortization and other foreign exchange losses. Adjusted EBITDA is also adjusted for certain discrete items that management exclude in analyzing each of the Company’s segments’ operating performance. “Other and corporate” relates to additional financial information for the corporate function such as accounting, treasury, legal, human resources, compliance, and tax. As such, the corporate function is not determined to be a reportable segment but is discretely disclosed for purposes of reconciliation to the Company’s unaudited Condensed Consolidated Financial Statements. Reportable segment results as of and for the three months ended March 31, 2024 and 2023 are presented below:
(in US$ thousands) Australia United States Other and Corporate Total Three months ended March 31, 2024 $ 436,106 $ 232,043 $ — $ 668,149 Adjusted EBITDA (26,227) 49,228 (8,380) 14,621 1,220,053 1,027,228 304,540 2,551,821 Capital expenditures 19,501 52,792 5 72,298 Three months ended March 31, 2023 $ 398,661 $ 367,053 $ — $ 765,714 Adjusted EBITDA 13,233 185,042 (7,526) 190,749 1,146,508 951,237 539,722 2,637,467 Capital expenditures 7,235 34,163 55 41,453 The reconciliations of Adjusted EBITDA to net income attributable to the Company for the three months ended March 31, 2024 and 2023 are as follows:
March 31, (in US$ thousands) 2024 2023 Net (loss) income $ (29,001) $ 107,860 Depreciation, depletion and amortization 45,349 39,423 Interest expense (net of interest income) (1) 13,329 14,665 Income tax (benefit) expense (4,112) 34,030 Other foreign exchange gains (2) (11,263) (2,992) Losses on idled assets (3) 492 1,751 Decrease in provision for discounting and credit losses (173) (3,988) Consolidated Adjusted EBITDA $ 14,621 $ 190,749 (1) Includes interest income of $ 3.0 1.0 million for the three months ended March 31, 2024 and 2023, respectively. (2) The balance primarily relates to foreign exchange gains and losses recognized in the translation of short-term inter-entity balances in certain entities within the group that are denominated in currencies other than their respective functional currencies. These gains and losses are included in “Other, net” on the unaudited Consolidated Statement of Operations and Comprehensive Income. (3) These losses relate to idled non-core assets that the Company has an active plan to sell. The reconciliations of capital expenditures per the Company’s segment information to capital expenditures disclosed on the unaudited Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2024 and 2023 are as follows:
Three months ended March 31, (in US$ thousands) 2024 2023 Capital expenditures per unaudited Condensed Consolidated Statements of Cash Flows $ 54,931 $ 54,839 Accruals for capital expenditures 22,150 4,098 Payment for capital acquired in prior periods (10,790) (11,242) Net movement in deposits to acquire long lead capital 6,007 (6,242) Capital expenditures per segment detail $ 72,298 $ 41,453 Disaggregation of Revenue The Company disaggregates the revenue from contracts with customers by major product group for each of the Company’s reportable segments, as the Company believes it best depicts the nature, amount, timing and uncertainty of revenues and cash flows. All revenue is recognized at a point in time.
Three months ended March 31, 2024 (in US$ thousands) Australia United States Total Product Groups: Metallurgical coal $ 408,303 $ 193,531 $ 601,834 Thermal coal 19,294 11,865 31,159 427,597 205,396 632,993 Other (1)(2) 8,509 26,647 35,156 Total $ 436,106 $ 232,043 $ 668,149
Three months ended March 31, 2023 (in US$ thousands) Australia United States Total Product Groups: Metallurgical coal $ 372,519 $ 283,023 $ 655,542 Thermal coal 18,285 64,518 82,803 390,804 347,541 738,345 Other (1)(2) 7,857 19,512 27,369 Total $ 398,661 $ 367,053 $ 765,714 (1) Other revenue for the Australian segment includes the amortization of the Stanwell non-market coal supply contract obligation liability. (2) Other revenue for the U.S. segment includes $ 25.0 17.5 million for the three months ended March 31, 2024 and March 31, 2023, respectively, relating to termination fee revenue from a coal sales contracts cancelled at our U.S. operations. |