Royal Gold, Inc. (NASDAQ: RGLD; TSX: RGL) (together with
its subsidiaries, “Royal Gold” or the “Company”) reports results
for its third quarter of fiscal 2016 (“third quarter”), including
total revenue of $93.5 million, up 26% from $74.1 million in the
prior year quarter. The increase in revenue was driven by an
increase in stream revenue from newly acquired streams at Pueblo
Viejo, Wassa and Prestea, and Andacollo.
Third Quarter Highlights Compared with the Year-ago
Quarter:
- Revenue of $93.5 million, an increase
of 26%
- Volume of 79,025 Gold Equivalent Ounces
(“GEOs”1), an increase of 30%
- Record quarterly dividends paid of $15
million, or $0.23 per share
- After previously announced impairment
charges, net loss was ($1.04) per share and adjusted net income2
was $0.29 per share, excluding the impairment
- Adjusted EBITDA3 of $69.3 million, an
increase of 20%
“Our new streams at Andacollo, Pueblo Viejo, Wassa and Prestea
are delivering significant growth and contributed to a 27% increase
in operating cash flow over the December quarter,” commented Tony
Jensen, President and CEO. “As expected, we are now receiving
deliveries of silver in addition to gold from Pueblo Viejo, further
enhancing our returns from this quality property. Looking forward,
we anticipate production from Rainy River and Cortez Crossroads
will provide additional growth and portfolio diversification in the
near future.”
Third quarter revenue included $63.4 million from the stream
segment and $30.1 million from the royalty segment, at an average
gold price of $1,183 per ounce. Stream segment gold purchases
totaled approximately 40,800 ounces of gold and sales were
approximately 54,300 ounces of gold. The Company had approximately
12,200 ounces of gold and 210,000 ounces of silver in inventory at
March 31, 2016, as previously announced, compared to 25,700 ounces
of gold at December 31, 2015.
Cost of sales was $17.9 million for the third quarter, compared
to $10.5 million a year ago. The increase is primarily attributable
to stream production at Pueblo Viejo, Wassa and Prestea, and
Andacollo. Cost of sales is specific to our stream agreements and
is the result of the Company’s purchase of gold and silver for a
cash payment.
General and administrative expenses increased to $7.7 million
for the third quarter, up from $5.5 million a year ago. The
increase was primarily due to an increase in non-cash stock based
compensation of approximately $1.5 million.
Depreciation, depletion and amortization increased to $38.2
million for the third quarter, up from $24.8 million a year ago.
The increase was primarily attributable to new production from the
recently acquired streams at Pueblo Viejo, Andacollo, Wassa and
Prestea.
Interest and other income increased to $3.1 million for the
third quarter, up from $0.4 million a year ago, due to a change in
fair value and gains on the sale of certain equity positions we
held.
Interest and other expense increased to $8.8 million for the
third quarter, up from $6.4 million a year ago, primarily due to
the outstanding balance on our revolving credit facility. The
Company had $300 million outstanding under the revolving credit
facility at the end of the third quarter, and did not have any
amounts outstanding under the revolving credit facility a year
ago.
We recognized an income tax benefit totaling $8.3 million
compared with income tax expense of $1.0 million in the year ago
quarter. This resulted in an effective tax rate of 10.6% in the
current period, compared with 4.0% in the year ago quarter. The
effective tax rate was impacted by the impairment charge in the
quarter and appreciation of the Canadian dollar.
Royal Gold reported a net loss attributable to Royal Gold
stockholders of ($67.7) million, or ($1.04) per share for the third
quarter, as compared to net income attributable to Royal Gold
stockholders of $25.0 million, or $0.38 per share, for the prior
year quarter. The decrease in reported net income was primarily
attributable to previously disclosed impairments of royalty and
stream interests and royalty receivables collectively totaling
$99.0 million, the effect of which was $1.33 per share, after taxes
in the third quarter. Excluding the after-tax effect of the
impairments of royalty and stream interests and royalty
receivables, adjusted net income attributable to Royal Gold
stockholders would have been $18.9 million, or $0.29 per share for
the third quarter.
Adjusted EBITDA for the third quarter was $69.3 million ($1.06
per basic share), representing 74% of revenue, compared with
Adjusted EBITDA of $57.7 million ($0.89 per basic share), or 78% of
revenue, for the year-ago quarter.
On March 16, 2016, the Company entered into an amendment to
revise its revolving credit agreement to extend the scheduled
maturity date from January 29, 2019 to March 16, 2021. At March 31,
2016, working capital totaled $151.0 million. When combined with
$350 million of available liquidity under our revolving credit
facility, total liquidity at March 31, 2016 was approximately
$500.0 million. Cash flow from operations was $66.1 million for the
third quarter.
__________________________
1 GEOs are calculated as revenue divided by the
average quarterly price per ounce of gold. Net of stream payments,
GEOs were 63,876 in the third quarter, compared with 52,190 net
GEOs in the year-ago quarter, an increase of 22%. 2 Non-GAAP
financial measure (see Schedule A). 3 Non-GAAP financial measure
(see Schedule A).
PROPERTY HIGHLIGHTS
A summary of calendar year production estimates versus actual
production at certain producing properties can be found on Table 3.
Highlights at certain of the Company’s principal producing and
development properties during the third quarter, compared with the
quarter ended March 31, 2015, are detailed in our Form 10-Q.
CORPORATE PROFILE
Royal Gold is a precious metals royalty and stream company
engaged in the acquisition and management of precious metal
royalties, streams, and similar production based interests. The
Company owns interests on 193 properties on six continents,
including interests on 38 producing mines and 24 development stage
projects. Royal Gold is publicly traded on the NASDAQ Global Select
Market under the symbol “RGLD,” and on the Toronto Stock Exchange
under the symbol “RGL.” The Company’s website is located at
www.royalgold.com.
Note: Management’s conference call reviewing the third
fiscal quarter results will be held Thursday, April 28, 2016 at
10:00 a.m. Mountain Daylight Time (noon Eastern Daylight Time) and
will be available by calling (855) 209-8260 (U.S.), (855) 669-9657
(Canada) or (412) 542-4106 (international), conference title “Royal
Gold.” The call will be simultaneously broadcast on the Company’s
website at www.royalgold.com under the “Presentations”
section. A replay of this webcast will be available on the
Company’s website approximately two hours after the call ends.
Cautionary “Safe Harbor” Statement Under the Private
Securities Litigation Reform Act of 1995: With the exception of
historical matters, the matters discussed in this press release are
forward-looking statements that involve risks and uncertainties
that could cause actual results to differ materially from
projections or estimates contained herein. Such forward-looking
statements include statements about operators’ expectations about
development, ramp-up, production and mine life; anticipated
production and returns from our stream and royalty properties,
including without limitation Rainy River and Cortez Crossroads and
statements about the opportunities for portfolio and investment
diversification and the Company’s ability to pursue such
opportunities. Factors that could cause actual results to differ
materially from the projections include, among others, precious
metals, copper and nickel prices; performance of and production at
the Company's royalty and stream properties; the ability of
operators of development properties to finance project construction
to completion and bring projects into production as expected;
operators’ delays in securing or inability to secure necessary
governmental permits; decisions and activities of the operators of
the Company's royalty and stream properties; unanticipated grade,
environmental, geological, seismic, metallurgical, processing,
liquidity or other problems the operators of the mining properties
may encounter; completion of feasibility studies; changes in
operators’ project parameters as plans continue to be refined;
changes in estimates of reserves and mineralization by the
operators of the Company’s royalty and stream properties; contests
to the Company’s royalty and stream interests and title and other
defects to the Company’s royalty and stream properties; errors or
disputes in calculating royalty and stream payments, or payments
not made in accordance with royalty and stream agreements; economic
and market conditions; risks associated with conducting business in
foreign countries; changes in laws governing the Company and its
royalty and stream properties or the operators of such properties;
and other subsequent events; as well as other factors described in
the Company's Annual Report on Form 10-K, Quarterly Reports on Form
10-Q, and other filings with the Securities and Exchange
Commission. Most of these factors are beyond the Company’s ability
to predict or control. The Company disclaims any obligation to
update any forward-looking statement made herein. Readers are
cautioned not to put undue reliance on forward-looking
statements.
TABLE 1Third Quarter Fiscal
2016Revenue and Reported Production for Principal Royalty
and Stream InterestsThree Months Ended March 31, 2016 and
March 31, 2015(In thousands, except reported production in
oz. and lbs.)
Three Months Ended Three Months Ended March 31,
2016 March 31, 2015
Reported Reported
Royalty/Stream
Metal(s)
Revenue
Production1
Revenue Production1
Stream:
Mount Milligan Gold
$ 29,806 25,400 oz. $
29,718 24,200 oz. Andacollo Gold
$ 15,730 13,500 oz.
N/A N/A Pueblo Viejo
Gold $ 13,608 11,800
oz. N/A N/A
Wassa/Prestea Gold $ 4,155
3,500 oz. N/A N/A
Other Gold $ 140
100 oz. N/A N/A
Royalty:
Peñasquito
$ 5,210 $ 7,253
Gold
120,300 oz.
177,200 oz. Silver 4.8
Moz. 6.0 Moz. Lead
30.2 Mlbs.
39.5 Mlbs. Zinc
73.1 Mlbs.
82.6 Mlbs. Voisey's Bay
$ 2,778 $
1,919 Nickel
17.2 Mlbs.
17.2 Mlbs. Copper
39.2 Mlbs.
N/A Holt Gold $
2,451 13,500 oz. $ 3,208
16,700 oz. Cortez Gold $
1,853 18,400 oz. $ 5,025
65,200 oz. Andacollo2 Gold
$ - - oz. $ 8,507
9,500 oz. Other Various $
17,756 N/A $ 18,480
N/A
Total Revenue
$ 93,487
$ 74,110
TABLE 1Third Quarter Fiscal
2016Revenue and Reported Production for Principal Royalty
and Stream InterestsNine Months Ended March 31, 2016 and
March 31, 2015(In thousands, except reported production in
oz. and lbs.)
Nine Months Ended Nine Months Ended March 31,
2016 March 31, 2015
Reported Reported
Royalty/Stream
Metal(s)
Revenue
Production1
Revenue Production1
Stream:
Mount Milligan Gold
$ 95,564 85,100 oz. $
66,693 53,900 oz. Andacollo Gold
$ 32,163 28,200 oz.
N/A N/A Pueblo Viejo
Gold $ 23,008 20,600 oz.
N/A N/A Wassa/Prestea
Gold $ 17,555 15,500
oz. N/A N/A Other
Gold $ 317 200 oz.
N/A N/A
Royalty:
Peñasquito $ 20,208
$ 19,936
Gold 542,100
oz. 445,300 oz.
Silver 18.8 Moz.
17.6 Moz. Lead
120.9 Mlbs.
110.2 Mlbs. Zinc
289.8 Mlbs.
252.0 Mlbs. Voisey's Bay $
11,044 $ 13,645
Nickel
78.6 Mlbs.
53.8 Mlbs. Copper
56.2 Mlbs.
44.0 Mlbs. Holt Gold $ 7,520
44,800 oz. $ 9,043
45,800 oz. Cortez Gold $ 4,840
58,000 oz. $ 14,761
185,100 oz. Andacollo2 Gold
$ - - oz. $ 28,599
31,000 oz. Other Various
$ 53,441 N/A $ 51,762
N/A
Total Revenue
$ 265,660
$ 204,439
TABLE 2Historical
Production
Reported Production For The Quarter Ended1
Property
Royalty/Stream
Operator
Metal(s) Mar. 31, 2016
Dec. 31, 2015 Sep. 30,
2015 Jun. 30, 2015 Mar.
31, 2015 Stream:
Mount Milligan 52.25% of payable gold
Thompson Creek Gold
25,400 oz. 38,700 oz.
21,000 oz. 23,000 oz.
24,200 oz. Andacollo 100% of gold produced
Teck Gold 13,500
oz. 5,200 oz. 9,500 oz.
N/A N/A
Pueblo Viejo
7.5% of gold produced up to990,000 ounces;
3.75% thereafter
Barrick (60%) Gold 11,800
oz. 8,800 oz. N/A
N/A N/A
Wassa/Prestea
8.5% of gold produced up to185,000 ounces;
5.0% thereafter
Golden Star Gold 3,500
oz. 8,800 oz. 3,200
oz. N/A N/A
Royalty
Peñasquito 2.0% NSR Goldcorp
Gold 120,300 oz.
195,400 oz. 226,500 oz.
296,900 oz. 177,200 oz.
Silver 4.8 Moz. 6.8 Moz.
7.3 Moz. 7.0 Moz.
6.0 Moz. Lead 30.2 Mlbs.
41.7 Mlbs. 49.1 Mlbs.
48.2 Mlbs. 39.5 Mlbs.
Zinc
73.1 Mlbs. 98.0 Mlbs.
118.7 Mlbs. 88.9 Mlbs.
82.6 Mlbs. Cortez GSR1 and GSR2, GSR3,
NVR1 Barrick Gold 18,400
oz. 17,000 oz. 22,600
oz. 43,900 oz. 65,200
oz. Holt
0.00013 x quarterly averagegold price
Kirkland Lake Gold Gold
13,500 oz. 15,000 oz.
16,300 oz. 15,800 oz.
16,700 oz. Voisey's Bay 2.7% NSR Vale
Nickel 17.2
Mlbs. 23.6 Mlbs. 37.8
Mlbs. 9.0 Mlbs. 17.2
Mlbs.
Copper 39.2 Mlbs. 15.2
Mlbs. 1.7 Mlbs. 20.8
Mlbs. N/A Mlbs. Andacollo2
75% Teck Gold N/A
N/A N/A
10,500 oz. 9,500
oz.
FOOTNOTES
Tables 1 and 2
1
Reported production relates to the amount of metal
sales that are subject to our royalty and stream interests for the
stated period, as reported to us by operators of the mines. 2 This
royalty was terminated effective July 1, 2015.
TABLE 3Calendar 2016 Operators’
Production Estimate vs Actual Production
Calendar 2016 Operator’s Production Estimate1
Calendar 2016 Operator's Production
Actual2,3
Gold Silver Base
Metals Gold Silver
Base Metals Royalty/Stream (oz.)
(oz.) (lbs.)
(oz.) (oz.)
(lbs.) Andacollo4 57,600 -
- 13,600 -
- Cortez GSR1 119,200 -
- 16,700 -
- Cortez GSR2 1,300 - -
1,700 - - Cortez
GSR3 120,500 - -
18,400 - - Cortez NVR1
68,900 - -
13,300 - - Mount Milligan5
240,000-270,000 - -
53,300 - -
Penasquito6,7 520,000-580,000 22-24
million - N/A N/A
- Lead
145-155 million
N/A Zinc
375-400 million
N/A Pueblo Viejo8
600,000-650,000
Not provided
172,000 Not provided - Wassa/Prestea9
180,000-205,000
53,000
1
Production estimates received from our operators are for
calendar 2016. There can be no assurance that production estimates
received from our operators will be achieved. Please refer to our
cautionary language regarding forward looking statements preceding
Table 1 above, as well as the Risk Factors identified in Part I,
Item 1A, of our Fiscal 2015 10-K for information regarding factors
that could affect actual results. 2 Actual production figures shown
are for the period January 1, 2016 through March 31, 2016, unless
otherwise noted. 3 Actual production figures for Andacollo and
Cortez are based on information provided to us by the operators,
and actual production figures for Holt, Mount Milligan, Peñasquito
(gold), Pueblo Viejo and Wassa and Prestea are the operators’
publicly reported figures. 4 The estimated and actual production
figures shown for Andacollo are contained gold in concentrate. 5
The estimated and actual production figures shown for Mount
Milligan are payable gold in concentrate. 6 The Company’s royalty
interest at Peñasquito includes gold, silver, lead and zinc. The
estimated gold and silver production figures reflect payable gold
and silver in concentrate and doré, while the estimated lead and
zinc production figures reflect payable metal in concentrate. 7 The
actual production for silver, lead and zinc were not publicly
available at the date hereof. 8 The estimated and actual production
figures shown are payable gold in doré and represent Barrick’s 60%
interest in Pueblo Viejo. 9 The estimated production figure shown
is payable gold in doré.
TABLE 4Stream Summary
Three Months Ended March 31, 2016 Three Months
Ended March 31, 2015 As of March 31, 2016 Gold
Stream Purchases (oz.) Sales (oz.) Purchases
(oz.) Sales (oz.)
Ounces ininventory
Mount Milligan 17,400 25,400 26,200 24,200 16 Wassa/Prestea 4,400
3,500 N/A N/A 1,536 Pueblo Viejo 10,600 11,800 N/A N/A 10,633
Andacollo 8,300 13,500 N/A N/A 22 Phoenix Gold 100 100 N/A N/A -
Total 40,800 54,300 26,200
24,200 12,207 Three Months Ended March 31,
2016 Three Months Ended March 31, 2015 As of March
31, 2016 Silver Stream Purchases (oz.) Sales
(oz.) Purchases (oz.) Sales (oz.)
Ounces ininventory
Pueblo Viejo 209,800 - N/A N/A 209,800
Nine Months
Ended March 31, 2016 Nine Months Ended March 31, 2015
As of March 31, 2016 Gold Stream Purchases
(oz.) Sales (oz.) Purchases (oz.) Sales
(oz.)
Ounces ininventory
Mount Milligan 79,800 85,100 52,900 53,900 16 Andacollo 28,200
28,200 N/A N/A 1,536 Wassa/Prestea 17,100 15,500 N/A N/A 10,633
Pueblo Viejo 31,200 20,600 N/A N/A 22 Phoenix Gold 300 200 N/A N/A
-
Total 156,600 149,600 52,900
53,900 12,207 Nine Months Ended March 31,
2016 Nine Months Ended March 31, 2015 As of March 31,
2016 Silver Stream Purchases (oz.) Sales
(oz.) Purchases (oz.) Sales (oz.)
Ounces ininventory
Pueblo Viejo 209,800 - N/A N/A 209,800
ROYAL GOLD, INC.Consolidated
Balance Sheets(In thousands except share data)
March 31, 2016 June 30, 2015
ASSETS Cash and
equivalents $ 122,863 $ 742,849 Royalty receivables 20,233 37,681
Income tax receivable 21,578 6,422 Stream inventory 5,402 2,287
Available-for-sale securities 3,861 6,273 Prepaid expenses and
other 1,243 1,511 Total current assets 175,180
797,023 Royalty and stream interests, net 2,863,440
2,083,608 Other assets 60,622 44,801 Total
assets $ 3,099,242 $ 2,925,432
LIABILITIES
Accounts payable 3,413 4,911 Dividends payable 15,011 14,341 Other
current liabilities 5,778 5,721 Total current
liabilities 24,202 24,973 Debt 630,252 322,110 Deferred tax
liabilities 139,861 146,603 Uncertain tax positions 17,080 15,130
Other long-term liabilities 6,489 689 Total
liabilities 817,884 509,505 Commitments
and contingencies
EQUITY
Preferred stock, $.01 par value,
10,000,000 shares authorized;and 0 shares issued
- -
Common stock, $.01 par value, 100,000,000
shares authorized;and 65,089,008 and 65,033,547 shares outstanding,
respectively
651 650 Additional paid-in capital 2,178,011 2,170,643 Accumulated
other comprehensive income (loss) 553 (3,292 ) Accumulated earnings
43,153 185,121 Total Royal Gold stockholders’
equity 2,222,368 2,353,122 Non-controlling interests 58,990
62,805 Total equity 2,281,358 2,415,927
Total liabilities and equity $ 3,099,242 $ 2,925,432
ROYAL GOLD, INC.Consolidated
Statements of Operations and Comprehensive (Loss) Income(In
thousands except for per share data)
For The Three Months Ended For The Nine Months Ended March
31, March 31, March 31, March 31, 2016
2015 2016 2015 Revenue $
93,487 $ 74,110 $ 265,660 $ 204,439 Costs and expenses Cost
of sales 17,921 10,542 51,960 23,452 General and administrative
7,679 5,545 23,416 18,201 Production taxes 958 935 3,546 4,356
Exploration costs 1,851 155 6,135 155 Depreciation, depletion and
amortization 38,163 24,783 105,717 67,273 Impairments of royalty
and stream interests and royalty receivables 98,973
- 98,588 31,335 Total
costs and expenses 165,545 41,960
289,362 144,772 Operating (loss)
income (72,058 ) 32,150 (23,702 ) 59,667 Interest and other
income 3,060 435 2,804 714 Interest and other expense (8,762
) (6,433 ) (23,968 ) (19,502 ) Income (loss)
before income taxes (77,760 ) 26,152 (44,866 ) 40,879 Income
tax benefit (expense) 8,262 (1,041 )
(55,655 ) (3,172 ) Net (loss) income (69,498 ) 25,111
(100,521 ) 37,707 Net loss (income) attributable to non-controlling
interests 1,842 (97 ) 2,932
(559 ) Net (loss) income attributable to Royal Gold common
stockholders $ (67,656 ) $ 25,014 (97,589 ) $ 37,148
Net (loss) income $ (69,498 ) $ 25,111 $ (100,521 ) $
37,707 Adjustments to comprehensive income (loss) , net of tax
Unrealized change in market value of available-for-sale securities
2,383 (2,168 ) 4,521 (3,988 ) Reclassification adjustment for gains
included in net income (675 ) - (675 )
- Comprehensive (loss) income (67,790 ) 22,943
(96,675 ) 33,719 Comprehensive loss (income) attributable to
non-controlling interests 1,842 (97 )
2,932 (559 ) Comprehensive (loss) income attributable
to Royal Gold stockholders $ (65,948 ) $ 22,846 $ (93,743 )
$ 33,160 Net (loss) income per share available to
Royal Gold common stockholders: Basic (loss) earnings per
share $ (1.04 ) $ 0.38 $ (1.50 ) $ 0.57 Basic
weighted average shares outstanding 65,085,225
65,033,547 65,069,056 64,999,331
Diluted (loss) earnings per share $ (1.04 ) $ 0.38 $ (1.50 )
$ 0.57 Diluted weighted average shares outstanding
65,085,225 65,129,362 65,069,056
65,122,313 Cash dividends declared per common share $
0.23 $ 0.22 $ 0.68 $ 0.65
ROYAL GOLD, INC.Consolidated
Statements of Cash Flows(In Thousands)
For The Three Months Ended For The Nine Months Ended March
31, March 31, March 31, March 31, 2016
2015 2016 2015 Cash flows
from operating activities: Net (loss) income $ (69,498 ) $ 25,111 $
(100,521 ) $ 37,707 Adjustments to reconcile net income (loss) to
net cash provided by operating activities: Depreciation, depletion
and amortization 38,163 24,783 105,717 67,273 Non-cash employee
stock compensation expense 2,340 836 7,789 3,660 Impairments of
royalty and stream interests and royalty receivables 98,973 -
98,588 31,335 Amortization of debt discount 2,759 2,611 8,142 7,624
Gain on sale of available-for-sale securities (675 ) - (675 ) -
Deferred tax benefit (5,479 ) (17,096 ) (17,246 ) (34,199 ) Tax
expense (benefit) of stock-based compensation exercises - - 247 (74
) Other - - (390 ) - Changes in assets and liabilities: Royalty
receivables (176 ) (2,172 ) 14,976 4,172 Income taxes receivable
(6,526 ) 26,969 (2,996 ) 25,191 Stream inventory 2,887 (874 )
(3,115 ) 434 Prepaid expenses and other assets (1,470 ) 2,001 1,630
4,037 Accounts payable 559 (560 ) (1,533 ) (1,742 ) Uncertain tax
positions 1,144 709 1,950 1,736 Other liabilities 3,050
3,602 8,084 1,040
Net cash provided by operating activities $ 66,051 $ 65,920
$ 120,647 $ 148,194 Cash flows from
investing activities: Acquisition of royalty and stream interests
(1,272 ) (21,607 ) (1,326,256 ) (60,341 ) Proceeds from sale of
available-for-sale securities 6,933 - 6,933 - Andacollo royalty
termination - - 345,000 - Golden Star term loan - - (20,000 ) -
Tulsequah stream termination - 10,000 - 10,000 Other (31 )
446 (302 ) (71 ) Net cash provided by
(used in) investing activities $ 5,630 $ (11,161 ) $
(994,625 ) $ (50,412 ) Cash flows from financing activities:
Repayment of revolving credit facility (50,000 ) - (50,000 ) - Debt
issuance costs (1,041 ) - (1,049 ) - Net (payments) proceeds from
issuance of common stock (174 ) - (174 ) 775 Common stock dividends
(15,010 ) (14,343 ) (43,709 ) (41,712 ) Distribution to
non-controlling interests (193 ) (316 ) (829 ) (1,227 ) Borrowings
from revolving credit facility - - 350,000 - Tax (benefit) expense
of stock-based compensation exercises - -
(247 ) 74 Net cash (used in) provided
by financing activities $ (66,418 ) $ (14,659 ) $ 253,992 $
(42,090 ) Net increase (decrease) in cash and equivalents 5,263
40,100 (619,986 ) 55,692 Cash and equivalents at beginning of
period 117,600 675,128 742,849
659,536 Cash and equivalents at end of period
$ 122,863 $ 715,228 $ 122,863 $ 715,228
SCHEDULE A
Non-GAAP Financial Measures
Non-GAAP financial measures are intended to provide additional
information only and do not have any standard meaning prescribed by
generally accepted accounting principles (GAAP). These measures
should not be considered in isolation or as a substitute for
measures of performance prepared in accordance with GAAP.
Our management uses Adjusted EBITDA and Adjusted Net Income as
measures of operating performance to assist in comparing
performance from period to period on a consistent basis; as a
measure for planning and forecasting overall expectations and for
evaluating actual results against such expectations; in
communications with the board of directors, stockholders, analysts
and investors concerning our financial performance; as useful
comparisons to the performance of our competitors; and as metrics
of certain management incentive compensation calculations. We
believe that these measures are used by and are useful to investors
and other users of our financial statements in evaluating our
operating performance because they provide an additional tool to
evaluate our performance without regard to special and noncore
items, which can vary substantially from company to company
depending upon accounting methods and book value of assets and
capital structure. We have provided reconciliations of all non-GAAP
measures to their nearest U.S. GAAP measures and have consistently
applied the adjustments within our reconciliations in arriving at
each non-GAAP measure. We consider these items to be necessary
adjustments for purposes of evaluating our ongoing business
performance and are often considered non-recurring. Such
adjustments are subjective and involve significant management
judgment.
Adjusted EBITDA is defined by the Company as net (loss) income
plus depreciation, depletion and amortization, non-cash charges,
income tax expense, interest and other expense, and any impairment
of mining assets, less non-controlling interests in operating
income of consolidated subsidiaries, interest and other income, and
any royalty portfolio restructuring gains or losses. Other
companies may define and calculate this measure differently.
Adjusted EBITDA identifies the cash generated in a given period
that will be available to fund the Company's future operations,
growth opportunities, shareholder dividends and to service the
Company's debt obligations. This information differs from measures
of performance determined in accordance with U.S. generally
accepted accounting principles (“GAAP”) and should not be
considered in isolation or as a substitute for measures of
performance determined in accordance with U.S. GAAP. On the next
page is a reconciliation of net income to Adjusted EBITDA.
SCHEDULE AAdjusted EBITDA
Reconciliation
For The Three Months Ended For The Nine Months
Ended March 31, March 31, (Unaudited, in
thousands) (Unaudited, in thousands)
2016 2015
2016 2015 Net (loss)
income $ (69,498 ) $ 25,111 $ (100,521 ) $ 37,707 Depreciation,
depletion and amortization 38,163 24,783 105,717 67,273 Non-cash
employee stock compensation 2,340 836 7,789 3,660 Impairments of
royalty and stream interests and royalty receivables 98,973 -
98,588 31,335 Interest and other, net 5,702 5,998 21,164 18,789
Income tax (benefit) expense (8,262 ) 1,041 55,655 3,172
Non-controlling interests in operating loss (income) of
consolidated subsidiaries 1,842 (97 )
2,932 (559 )
Adjusted EBITDA $ 69,260 $
57,672 $ 191,324 $ 161,377
Adjusted Net Income
Management of the Company uses adjusted net income (loss) to
evaluate the Company’s operating performance, and for planning and
forecasting future business operations. The Company believes the
use of adjusted net income (loss) allows investors and analysts to
understand the results relating to receipt of revenue from its
royalty interests and purchase and sale of gold from its streaming
interests by excluding certain items that have a disproportionate
impact on our results for a particular period. The net income
(loss) adjustments are presented net of tax generally at Company’s
statutory effective tax rate. Management’s determination of the
components of adjusted net income (loss) are evaluated periodically
and based, in part, on a review of non-GAAP financial measures used
by mining industry analysts. Net income (loss) attributable to
Royal Gold stockholders is reconciled to adjusted net income (loss)
as follows:
Adjusted Net Income
Reconciliation
For The Three Months Ended For The Nine Months
Ended March 31, March 31, (Unaudited, in
thousands) (Unaudited, in thousands)
2016 2015
2016 2015 Net (loss) income
attributable to Royal Gold common stockholders $ (67,656 ) $
25,014 $ (97,589 ) $ 37,148 Impairments of royalty and
stream interests and royalty receivables, net of tax 86,514 -
86,130 24,185 Tax expense on Andacollo royalty sale and Chilean
subsidiary liquidation - - 56,000
-
Adjusted net income attributable to Royal Gold
common stockholders $ 18,858 $ 25,014 $ 44,541 $ 61,333
Adjusted earnings per share $ 0.29
$ 0.38 $ 0.68 $ 0.94
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160427006737/en/
Royal Gold, Inc.Karli Anderson, 303-575-6517Vice
President Investor Relations
Royal Gold (NASDAQ:RGLD)
Historical Stock Chart
From Apr 2024 to May 2024
Royal Gold (NASDAQ:RGLD)
Historical Stock Chart
From May 2023 to May 2024