Excluding the items described in "Reconciliation of Net Loss to Adjusted EBITDA," the fourth quarter 2014 Adjusted EBITDA was $103 million compared with $71 million in the fourth quarter of 2013.

"2014 was yet again a challenging year for the coal industry. Against this backdrop, we continue to adjust our production base and cost structure to align with current market conditions," said Kevin Crutchfield, chairman and CEO.  "These actions are yielding results as shown by our strong 2014 cost performance in the East.  Importantly, we expect to achieve additional cost savings in 2015, and we will continue to take aggressive actions to preserve flexibility and respond quickly to changing and challenging market conditions, including a reduction of SG&A and overhead costs in the range of $60 million to $75 million annually throughout the organization to adjust both the operational footprint and support services to our 2015 production guidance. "

Crutchfield continued, "While our business has benefitted from our prudent approach to portfolio rationalization during this prolonged coal market downturn, these have been tough decisions to make and the impact they have had on many Alpha employees is not lost on us.  I'm very proud of the Alpha organization and want to commend everyone on their dedication to achieving these objectives, while also maintaining an unwavering commitment to best in class safety and sustainability. As we have said on many occasions, despite such difficult market conditions, we will not lose focus on Running Right."

Financial Performance

• Total revenues in the fourth quarter of 2014 were $1.1 billion compared with $1.1 billion in the fourth quarter of 2013, and coal revenues were $0.9 billion, down from $1.0 billion in the year-ago period.  The decrease in coal revenues was attributable to lower average realizations in all regions partly offset by increased tons sold.  Freight and handling revenues and other revenues were $118 million and $21 million, respectively, during the fourth quarter of 2014, versus $110 million and $19 million, respectively, in the fourth quarter of 2013.
  
  During the fourth quarter of 2014, metallurgical coal shipments were 4.9 million tons, compared with 4.4 million tons in the fourth quarter of 2013 and 4.8 million tons in the prior quarter of 2014.  Alpha shipped 9.8 million tons of Powder River Basin (PRB) coal during the quarter, compared with 9.3 million tons in the year-ago period and 9.3 million tons in the prior quarter.  Eastern steam coal shipments were 7.3 million tons, compared with 6.8 million tons in the year-ago period and 7.2 million tons in the prior quarter.  The average per ton realization on metallurgical coal shipments in the fourth quarter was $83.43, down from $96.53 in the fourth quarter last year and up from $82.45 in the prior quarter.  The average per-ton realization for PRB shipments was $12.02, compared with $12.48 in the fourth quarter last year and $11.81 in the prior quarter.  The per-ton average realization for Eastern steam coal shipments was $55.47, compared with $61.66 in the year-ago period and $58.16 in the prior quarter.

• Total costs and expenses during the fourth quarter of 2014 were $1.2 billion, compared with $1.3 billion in the fourth quarter of 2013 and $1.2 billion in the prior quarter.  Cost of coal sales was $0.8 billion, compared with $0.9 billion in the year-ago period and $0.9 billion in the prior quarter.  The cost of coal sales in the East averaged $55.55 per ton, compared with $68.85 in the fourth quarter last year and $62.32 in the prior quarter.  Excluding the $2.71 per ton benefit from immaterial correction of prior period asset retirement obligation calculations, $0.63 per ton merger-related expenses and $0.08 per ton employee benefit related expenses, the adjusted cost of coal sales in the East averaged $57.55 per ton, compared with $66.97 in the fourth quarter last year, which excluded $1.66 per ton of merger-related expenses and $0.22 per ton provision for regulatory costs, and $61.69 in the third quarter of 2014, which excluded $0.47 per ton of employee benefit related expenses and $0.16 per ton of merger-related expenses.  Fourth quarter 2014 Eastern adjusted cost of coal sales per ton benefitted approximately $5 per ton from gains on asset disposals and the net benefit from various liability adjustments.  The cost of coal sales per ton for Alpha Coal West's PRB mines was $11.16 during the fourth quarter of 2014, compared with $10.29 in the fourth quarter of 2013 and $11.32 in the prior quarter.

• Selling, general and administrative (SG&A) expense in the fourth quarter of 2014 was $32 million, compared with SG&A expense of $38 million in the fourth quarter of 2013.  Depreciation, depletion and amortization decreased to $189 million during the fourth quarter of 2014 from $215 million in the year-ago period.

• Alpha recorded a net loss of $122 million, or $0.55 per diluted share, during the fourth quarter of 2014, compared with a net loss of $359 million, or $1.62 per diluted share, during the fourth quarter of 2013.  
  
  Excluding the items described in our "Reconciliation of Net Loss to Adjusted Net Loss," the fourth quarter 2014 adjusted net loss was $112 million, or $0.50 per diluted share, compared with adjusted net loss of $115 million, or $0.52 per diluted share, in the fourth quarter of 2013.

• Excluding the items described in the "Reconciliation of Net Loss to Adjusted EBITDA," adjusted EBITDA was $103 million in the fourth quarter of 2014, compared with $71 million in the fourth quarter of 2013.  Fourth quarter 2014 adjusted EBITDA includes approximately $60 million from gains on asset disposals and the net benefit of various liability adjustments.

For complete details, visit www.alphanr.com.