Alliance Holdings GP, L.P. Increases Quarterly Distribution by 3.0% to $0.785 Per Unit and Reports R

Alliance Holdings GP, L.P. Increases Quarterly Distribution by 3.0% to $0.785 Per Unit and Reports Record Quarterly Financial Results

TULSA, Okla.--(BUSINESS WIRE)-- Alliance Holdings GP, L.P. (NAS: AHGP) today announced that the Board of Directors of its general partner declared a quarterly cash distribution for the quarter ended June 30, 2013 (the "2013 Quarter") of $0.785 per unit, or an annualized rate of $3.14 per unit. The declared distribution will be paid on August 19, 2013 to AHGP's unitholders of record as of the close of trading on August 12, 2013.


The announced quarterly cash distribution represents a 12.5% increase over the $0.6975 per unit distribution (an annualized rate of $2.79 per unit) for the quarter ended June 30, 2012 (the "2012 Quarter") and an increase of 3.0% over the first quarter 2013 distribution of $0.7625 per unit (an annualized rate of $3.05 per unit).

The declared distribution is based on the distribution AHGP will receive from its ownership interests in Alliance Resource Partners, L.P. (NAS: ARLP) . ARLP today announced a quarterly distribution for the 2013 Quarter of $1.1525 per unit, or $4.61 per unit on an annualized basis, payable on August 14, 2013 to all unitholders of record as of the close of trading on August 7, 2013. (See ARLP Press Release dated July 26, 2013.)

AHGP also reported record net income for the 2013 Quarter of $61.0 million, or $1.02 per basic and diluted limited partner unit, an increase of 12.2% compared to net income for the 2012 Quarter of $54.4 million, or $0.91 per basic and diluted limited partner unit. (For a discussion of net income presentation, please see the end of this release.)

AHGP currently has no other operating activities apart from those conducted by the operating subsidiaries of ARLP and reports its financial results on a consolidated basis with the financial results of ARLP. AHGP's principal sources of cash flow are its ownership of general partner interests, limited partner interests and incentive distribution rights in ARLP. Based on ARLP's current declared distribution, AHGP expects to receive quarterly cash distributions from ARLP of $47.9 million, or $191.6 million on an annualized basis. AHGP's primary cash requirements are for working capital, distributions to its unitholders and general and administrative expenses, including for 2013 an estimated $2.7 million in general and administrative expenses.

AHGP and ARLP will discuss their 2013 Quarter financial results during a joint conference call scheduled for today at 10:00 a.m. Eastern. To participate in the conference call, dial (800) 706-7745 and provide pass code 27235935. International callers should dial (617) 614-3472 and provide the same pass code. Investors may also listen to the call via the "investor information" section of ARLP's website at http://www.arlp.com or AHGP's website at http://www.ahgp.com.

An audio replay of the conference call will be available for approximately one week. To access the audio replay, dial (888) 286-8010 and provide pass code 73983669. International callers should dial (617) 801-6888 and provide the same pass code.

This announcement is intended to be a qualified notice under Treasury Regulation Section 1.1446-4(b), with 100% of the partnership's distributions to foreign investors attributable to income that is effectively connected with a United States trade or business. Accordingly, AHGP's distributions to foreign investors are subject to federal income tax withholding at the highest applicable tax rate.

About Alliance Holdings GP, L.P.

AHGP is a limited partnership formed to own and control Alliance Resource Management GP, LLC, the managing general partner of Alliance Resource Partners, L.P. (NAS: ARLP) , through which it holds a 1.98% general partner interest and the incentive distribution rights in ARLP. In addition, AHGP owns 15,544,169 common units of ARLP.

News, unit prices and additional information about AHGP including filings with the Securities and Exchange Commission, are available at http://www.ahgp.com. For more information, contact the investor relations department of AHGP at (918) 295-1415 or via e-mail at investorrelations@ahgp.com.

The statements and projections used throughout this release are based on current expectations. These statements and projections are forward-looking, and actual results may differ materially. These projections do not include the potential impact of any mergers, acquisitions or other business combinations that may occur after the date of this release. At the end of this release, we have included more information regarding business risks that could affect our results.

FORWARD-LOOKING STATEMENTS:With the exception of historical matters, any matters discussed in this press release are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from projected results.These risks, uncertainties and contingencies include, but are not limited to, the following: changes in competition in coal markets and the ARLP Partnership's ability to respond to such changes; changes in coal prices, which could affect the ARLP Partnership's operating results and cash flows; risks associated with the ARLP Partnership's expansion of its operations and properties; legislation, regulations, and court decisions and interpretations thereof, including those relating to the environment, mining, miner health and safety and health care; deregulation of the electric utility industry or the effects of any adverse change in the coal industry, electric utility industry, or general economic conditions; dependence on significant customer contracts, including renewing customer contracts upon expiration of existing contracts; changing global economic conditions or in industries in which the ARLP Partnership's customers operate; liquidity constraints, including those resulting from any future unavailability of financing; customer bankruptcies, cancellations or breaches to existing contracts, or other failures to perform; customer delays, failure to take coal under contracts or defaults in making payments; adjustments made in price, volume or terms to existing coal supply agreements; fluctuations in coal demand, prices and availability; the ARLP Partnership's productivity levels and margins earned on its coal sales; unexpected changes in raw material costs; unexpected changes in availability of skilled labor; the ARLP Partnership's ability to maintain satisfactory relations with its employees; any unanticipated increases in labor costs, adverse changes in work rules, or unexpected cash payments or projections associated with post-mine reclamation and workers' compensation claims; any unanticipated increases in transportation costs and risk of transportation delays or interruptions; unexpected operational interruptions due to geologic, permitting, labor, weather-related or other factors; risks associated with major mine-related accidents, such as mine fires, or interruptions; results of litigation, including claims not yet asserted; difficulty maintaining the ARLP Partnership's surety bonds for mine reclamation as well as workers' compensation and black lung benefits; difficulty in making accurate assumptions and projections regarding pension, black lung benefits and other post-retirement benefit liabilities; coal market's share of electricity generation, including as a result of environmental concerns related to coal mining and combustion and the cost and perceived benefits of other sources of electricity, such as natural gas, nuclear energy and renewable fuels; uncertainties in estimating and replacing the ARLP Partnership's coal reserves; a loss or reduction of benefits from certain tax deductions and credits; difficulty obtaining commercial property insurance, and risks associated with the ARLP Partnership's participation (excluding any applicable deductible) in the commercial insurance property program; and difficulty in making accurate assumptions and projections regarding future revenues and costs associated with equity investments in companies we do not control.

Additional information concerning these and other factors can be found in AHGP's public periodic filings with the Securities and Exchange Commission ("SEC"), including AHGP's Annual Report on Form 10-K for the year ended December 31, 2012, filed on March 1, 2013 with the SEC.Except as required by applicable securities laws, AHGP does not intend to update its forward-looking statements.

    
 
ALLIANCE HOLDINGS GP, L.P. AND SUBSIDIARIES
 
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND OPERATING DATA
(In thousands, except unit and per unit data)
(Unaudited)
 
Three Months EndedSix Months Ended
June 30,June 30,
2013201220132012
 
SALES AND OPERATING REVENUES:
Coal sales$541,574$512,505$1,076,083$942,104
Transportation revenues4,9715,44111,90512,026
Other sales and operating revenues 6,933  11,826  13,460  19,134 
Total revenues 553,478  529,772  1,101,448  973,264 
 
EXPENSES:
Operating expenses (excluding depreciation, depletion and amortization)347,437334,647696,012608,162
Transportation expenses4,9715,44111,90512,026
Outside coal purchases79016,1541,39230,335
General and administrative17,00617,53532,71932,212
Depreciation, depletion and amortization 68,207  52,109  132,589  95,142 
Total operating expenses438,411425,886874,617777,877
 
INCOME FROM OPERATIONS115,067103,886226,831195,387
Interest expense, net(6,218)(8,268)(12,836)(14,180)
Interest income17852312145
Equity in loss of affiliates, net(5,699)(4,430)(9,566)(8,208)
Other income 353  2,384  627  2,599 
INCOME BEFORE INCOME TAXES103,68193,624205,368175,743
INCOME TAX EXPENSE (BENEFIT) 108  (257) (589) (624)
NET INCOME103,57393,881205,957176,367
LESS: NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS (42,596) (39,517) (84,978) (72,689)
NET INCOME ATTRIBUTABLE TO ALLIANCE HOLDINGS GP, L.P. ("NET INCOME OF AHGP")$60,977 $54,364 $120,979 $103,678 
 
BASIC AND DILUTED NET INCOME OF AHGP PER LIMITED PARTNER UNIT$1.02 $0.91 $2.02 $1.73 
 
DISTRIBUTIONS PAID PER LIMITED PARTNER UNIT$0.7625 $0.6675 $1.5025 $1.305 
 
WEIGHTED AVERAGE NUMBER OF UNITS

OUTSTANDING-BASIC AND DILUTED

 59,863,000  59,863,000  59,863,000  59,863,000 
  
 
 
ALLIANCE HOLDINGS GP, L.P. AND SUBSIDIARIES
 
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except unit data)
(Unaudited)
 
ASSETSJune 30,December 31,
20132012
 
CURRENT ASSETS:
Cash and cash equivalents$12,940$31,111
Trade receivables164,190172,724
Other receivables1,0771,019
Due from affiliates185562
Inventories63,88646,660
Advance royalties11,87211,492
Prepaid expenses and other assets 10,032  20,554 
Total current assets264,182284,122
 
PROPERTY, PLANT AND EQUIPMENT:
Property, plant and equipment, at cost2,511,7482,361,863
Less accumulated depreciation, depletion and amortization (938,097) (832,293)
Total property, plant and equipment, net1,573,6511,529,570
 
OTHER ASSETS:
Advance royalties21,94423,267
Equity investments in affiliates128,88488,513
Due from affiliate5,9273,084
Other long-term assets 29,416  30,284 
Total other assets 186,171  145,148 
TOTAL ASSETS$2,024,004 $1,958,840 
 
LIABILITIES AND PARTNERS' CAPITAL
 
CURRENT LIABILITIES:
Accounts payable$95,956$100,678
Due to affiliates386327
Accrued taxes other than income taxes23,86520,033
Accrued payroll and related expenses44,00038,501
Accrued interest1,4551,435
Workers' compensation and pneumoconiosis benefits9,4789,320
Current capital lease obligations1,1411,000
Other current liabilities25,44119,572
Current maturities, long-term debt 24,250  18,000 
Total current liabilities225,972208,866
 
LONG-TERM LIABILITIES:
Long-term debt, excluding current maturities753,750773,000
Pneumoconiosis benefits62,62559,931
Accrued pension benefit31,32931,078
Workers' compensation72,21368,786
Asset retirement obligations75,02981,644
Long-term capital lease obligations17,88818,613
Other liabilities 7,345  9,147 
Total long-term liabilities 1,020,179  1,042,199 
Total liabilities 1,246,151  1,251,065 
 
COMMITMENTS AND CONTINGENCIES
 
PARTNERS' CAPITAL:
Alliance Holdings GP, L.P. ("AHGP") Partners' Capital:
Limited Partners - Common Unitholders 59,863,000 units outstanding480,159448,976
Accumulated other comprehensive loss (17,627) (18,296)
Total AHGP Partners' Capital462,532430,680
Noncontrolling interests 315,321  277,095 
Total Partners' Capital 777,853  707,775 
TOTAL LIABILITIES AND PARTNERS' CAPITAL$2,024,004 $1,958,840 
  
 
 
ALLIANCE HOLDINGS GP, L.P. AND SUBSIDIARIES
 
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
 
Six Months Ended
June 30,
20132012
 
CASH FLOWS PROVIDED BY OPERATING ACTIVITIES$373,087 $248,017 
 
CASH FLOWS FROM INVESTING ACTIV
Read Full Story

Can't get enough business news?

Sign up for Finance Report by AOL and get everything from retailer news to the latest IPOs delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

More to Explore
Tue, May 23
Set Your Location
City, State, or Zip