Arch Resources (ARCH) Q4 2023 earnings summary

Executive summary

• Q4 2023 net income was $114.9 million and adjusted EBITDA was $180.0 million; revenue totaled $774.0 million.

• Prior-year net income included a $253.3 million income tax benefit, primarily from releasing a deferred-tax-asset valuation allowance.

Financial highlights

• Q4 revenue was $774.0 million versus $859.5 million YoY; net income was $114.9 million versus $470.5 million.

• Q4 diluted EPS was $6.07 versus $23.18 YoY; adjusted EBITDA was $180.0 million versus $256.5 million, including a $3.9 million hedging mark-to-market gain in Q4 2022.

• FY 2023 revenue was $3.146 billion, net income $464.0 million, diluted EPS $24.20 and adjusted EBITDA $714.0 million.

• Q4 cash from operations was $181.6 million and discretionary cash flow was $126.5 million; cash and short-term investments increased $107.0 million to $320.5 million.

Outlook and guidance

• FY 2024 sales volume guidance: coking coal 8.6–9.0 million tons, thermal coal 50–56 million tons and total 58.6–65.0 million tons.

• FY 2024 expectations include higher coking coal production, first-quartile costs and a solid thermal contribution supported by normalized West Elk production.

• Weather disruptions, unplanned maintenance and a force majeure event at Curtis Bay are expected to modestly reduce Q1 vessel loadings; impacts are timing-related, with FY sales guidance unchanged.