Stock Monitor: Alliance Resource Partners Post Earnings Reporting
LONDON, UK / ACCESSWIRE / February 05, 2018 / Active-Investors.com has just released a free earnings report on Cleveland-Cliffs Inc. (NYSE: CLF). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=CLF. Cleveland-Cliffs reported its fourth quarter fiscal 2017 operating and financial results on January 25, 2018. The Company reported better than expected results and provided guidance for full year 2018. Register today and get access to over 1,000 Free Research Reports by joining our site below:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Cleveland-Cliffs most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
Earnings Highlights and Summary
Cleveland-Cliffs' fourth-quarter 2017 consolidated revenues were $601 million compared to revenues of $754 million in Q4 2016. The Company's revenue numbers fell short of analysts' estimates of $637 million.
Cleveland-Cliffs' full-year (FY) 2017 consolidated revenues were $2.3 billion compared to revenues of $2.1 billion in FY16.
During Q4 2017, Cleveland-Cliffs' cost of goods sold was $492 million compared to $573 million reported in Q4 2016. For the reported quarter, the Company's adjusted EBITDA was $129 million compared to $174 million in the year ago same period.
For Q4 2017, Cleveland-Cliffs recognized a $246 million income tax benefit. This was primarily attributable to a reversal of the valuation allowance on approximately $250 million of Alternate Minimum Tax (AMT) credit carryovers. With the passage of the Tax Cuts and Jobs Act of 2017 and corresponding repeal of the AMT, the Company stated that this amount will be refunded to Cleveland-Cliffs in cash over the next four tax years.
Cleveland-Cliffs recorded net income of $318 million, or $1.05 per diluted share, for Q4 2017 compared to net income of $81 million, or $0.34 per diluted share, recorded in Q4 2016. The Company's adjusted earnings totaled $0.26 per share, ahead of Wall Street's estimates of $0.15 per share.
For FY17, Cleveland-Cliffs reported net income of $371 million, or $1.28 per diluted share, compared to net income of $199 million, or $0.87 per diluted share, reported in FY16.
Cleveland-Cliffs' Segment Results
During Q4 2017, US Iron Ore pellet sales volume was 5.4 million long tons, down 22% compared to 6.9 million long tons sold in Q4 2016. The decrease was a result of a stronger than historical shipping pace during the first nine months of 2017 leading to lower required fourth quarter shipments to meet full-year customer nominations as well a nomination reduction from a major customer.
In the reported quarter, the revenue from the segment's product and services totaled $511.8 million versus $579.0 million in the year ago comparable period. Cash cost of goods sold and operating expense rate in US Iron Ore was $58.79 per long ton, up 11% from $52.80 per long ton in Q4 2016, primarily driven by higher costs associated with maintenance and repairs, employee benefits, and energy rates.
During Q4 2017, Asia/Pacific Iron Ore sales volume of 2.0 million metric tons decreased 30% on a y-o-y basis, primarily attributed to lower production volumes. The segment's revenue came in at $89.1 million for the reported quarter compared to $175.0 million in the year earlier same quarter.
During Q4 2017, cash cost of goods sold and operating expense rate in Asia/Pacific Iron Ore was $44.56 per metric ton, reflecting a 22% increase from $36.40 in the prior year's corresponding quarter. This was primarily attributable to increased mining costs, driven by a change in the overall production plan resulting in a higher strip ratio as well as increased logistics and unfavorable exchange rate variances.
Cleveland-Cliffs' cash and cash equivalents at the end of Q4 2017 totaled $1.0 billion compared to $323 million at the end of Q4 2016. The Company's total debt at the end of the reported quarter was $2.3 billion versus $2.2 billion at the end of the year ago same period. At the end of Q4 2017, including the impact of the transactions related to the ownership of Tilden, Empire, and Nashwauk, Cleveland-Cliffs had net debt3 of $1.3 billion, compared to $1.8 billion of net debt at the end of Q4 2016
Cleveland-Cliffs' total capital expenditures during Q4 2017 were $77 million, which included sustaining capital, preliminary spending related to the Hot-Briquetted Iron (HBI) project, and the acquisition of certain real estate interests located in Nashwauk, Minnesota (Nashwauk) from Glacier Park Iron Ore Properties LLC (GPIOP).
For full year 2018, Cleveland-Cliffs is forecasting sales and production volumes of approximately 20 million long tons from its US Iron Ore business, compared to 18.7 million long tons of sales and 18.8 million long tons of production in 2017.
Cleveland-Cliffs FY18 US Iron Ore cash cost of goods sold and operating expense expectation is $58 - $63 per long ton, which compared to $60 per long ton for FY17.
For FY18, Cleveland-Cliffs is estimating approximately $85 million in sustaining capital, approximately $250 million toward the HBI project in Toledo, Ohio and approximately $50 million toward the upgrade of the Northshore mine to produce up to 3.5 million long tons of DR-grade pellets annually.
Stock Performance Snapshot
February 02, 2018 - At Friday's closing bell, Cleveland-Cliffs' stock declined 4.71%, ending the trading session at $6.48.
Volume traded for the day: 20.12 million shares, which was above the 3-month average volume of 12.72 million shares.
Stock performance in the previous three-month period – up 4.35%;
After last Friday's close, Cleveland-Cliffs' market cap was at $2.02 billion.
Price to Earnings (P/E) ratio was at 5.00.
The stock is part of the Basic Materials sector, categorized under the Industrial Metals & Minerals industry.
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