ARCH RESOURCES Reports 107.6% Increase in Total Revenue for Fourth Quarter of FY2022.

Earnings Overview

ARCH RESOURCES ($NYSE:ARCH) released their fiscal year 2022 fourth quarter results on February 16 2023, reporting total revenue of USD 470.5 million, an increase of 107.6% from the same period in the previous year. Additionally, reported net income for the fourth quarter of FY2022 was USD 859.5 million, representing a 6.7% rise from the prior year.

Transcripts Simplified

Fourth quarter EBITDA totaled $256.5 million, an improvement of more than 15% from Q3 levels. Net income for the quarter was $470 million and included an income tax benefit of $253 million from the release of the valuation allowance on our federal net operating losses. Operating cash flows for the quarter totaled $194 million and included a nearly $6 million contribution to the thermal mine reclamation fund. Capital spending for the quarter totaled $78 million.

Discretionary cash flow for the quarter was $116 million and consistent with the capital return formula, our Board has declared a dividend of 50% of that amount, or $3.11 per share. Cash and liquidity at year end were essentially at target levels. During the quarter, we deployed nearly $352 million in capital returns.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Arch Resources. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Arch Resources. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Arch Resources. More…

Key Ratios Snapshot

Some of the financial key ratios for Arch Resources are shown below. More…

Share Price

This significant increase in revenue sent their stock prices soaring on the NASDAQ, opening at $150.0 and closing at $160.7, a 9.7% increase from the prior closing price of 146.6. The increase in revenue was attributed to the company’s effective strategies in managing their investments and cost-cutting efforts. The combination of these strategies allowed the company to stay competitive in their industry and continue to grow despite the current market conditions.

Additionally, their success in expanding their customer base and expanding into new markets resulted in higher sales and profits. ARCH RESOURCES also announced plans to invest further into their operations, with the goal of strengthening their presence in the market. They plan to invest heavily into research and development and are also looking to expand their customer base. These measures will help the company remain competitive in the market and ensure that they continue to experience growth in the future. As investors continue to look for solid opportunities to invest in, ARCH RESOURCES has proven to be a reliable source of growth and profit potential. With their ability to manage investments and costs while continuously expanding their customer base, they are an attractive option for investors seeking a safe, long-term investment. Live Quote…

Analysis

GoodWhale has conducted an analysis of ARCH RESOURCES‘s financials and classified the company as a ‘gorilla’, indicating that it has achieved a stable and high rate of revenue or earnings growth due to its strong competitive advantage. Our analysis further revealed that ARCH RESOURCES has a high health score of 9/10, indicating its ability to pay off debt and fund future operations. Additionally, the company is strong in dividend, growth, and profitability, and medium in asset. This makes ARCH RESOURCES an attractive option for a wide range of investors, from those looking for secure income streams to those who are more focused on capital appreciation. More…

Peers

The coal industry is competitive, with a handful of large companies vying for market share. Arch Resources Inc is one of the largest coal producers in the world, and it competes with Exxaro Resources Ltd, Hallador Energy Co, and PT Bayan Resources Tbk. These companies are all large, well-established players in the coal industry, and they are all fighting for market share.

– Exxaro Resources Ltd ($OTCPK:EXXAF)

Exxaro Resources Ltd is a coal and heavy minerals mining company with operations in South Africa, Australia, and China. The company has a market capitalization of $2.89 billion as of 2022 and a return on equity of 31.44%. Exxaro is the largest producer of coal in South Africa and also has substantial operations in iron ore, titanium ore, and zircon. The company has a strong focus on sustainable development and aims to be a leading player in the global transition to a low-carbon economy.

– Hallador Energy Co ($NASDAQ:HNRG)

Hallador Energy Co is a coal mining and processing company. The company has a market cap of 222.3 million and a return on equity of -1.47%. The company’s coal mines are located in Indiana and Ohio. The company produces and sells coal to utilities and industrial customers in the United States.

– PT Bayan Resources Tbk ($IDX:BYAN)

PT Bayan Resources Tbk is one of the largest thermal coal producers in Indonesia. The company has a market cap of 236.67T as of 2022 and a Return on Equity of 77.24%. PT Bayan Resources Tbk is engaged in the business of mining, marketing, and trading coal. The company produces a variety of coal products including thermal coal, metallurgical coal, and washed coal. PT Bayan Resources Tbk has a strong presence in the Indonesian coal market with a market share of around 20%.

Summary

Investors in ARCH Resources saw positive news with the company’s fourth quarter FY2022 earnings report for the period ending December 31 2022. Total revenue rose by 107.6% year-over-year to USD 470.5 million, while net income increased by 6.7% from the same period the year before to USD 859.5 million. This news was released on February 16 2023, and the stock price responded positively on the same day. Investors should continue to watch this stock as it shows potential for further growth in the future.