Cloud Peak Energy Inc. (NYSE:CLD) Q1 2018 Earnings Conference Call - Preliminary Transcript
Apr 26, 2018 • 05:00 pm ET
Good day, ladies and gentlemen, and thank you for standing by. Welcome to the Cloud Peak Energy's First Quarter 2018 Earnings Conference Call. At this time, all participants are in a listen-only mode to prevent background noise. (Operator Instructions) And as a reminder, this conference is being recorded. Now I would like to turn the call to Mr. Bryan Pechersky, Executive Vice President and General Counsel. You may begin, sir.
Good afternoon. With me today are Colin Marshall, Cloud Peak Energy's President, CEO and COO; and Heath Hill, CFO. Today's presentation may contain forward-looking statements regarding our outlook for our company and industry, financial and operational guidance, volumes, prices, demand and costs, the regulatory and political environment, growth strategies, capital resources and other statements that are not historical facts. Actual results may differ materially because of various risks and uncertainties, including those described in the cautionary statement in today's earnings release and in our most recent Form 10-K and Forms 10-Q.
Today's presentation also includes non-GAAP financial measures. Please refer to today's earnings release for the reconciliations and related disclosures. Our earnings release is available on the Investor Relations section of our website at cloudpeakenergy.com. I will now turn the call over to Colin Marshall.
Thank you, Bryan. Good afternoon and thank you for taking the time to listening to our Q1 2018 results call. I am joined by Heath Hill, our CFO. Shipments during the first quarter continued at a steady pace as our customers took their contracted coal. The cold January increased coal burn bringing down utility inventory, but this slowed in February and March with warmer weather. Our export business ran well with strong demand from our Asian customers and good performance from the rail and port system. This allowed us to expand the forecast to 1.4 million tons during the quarter. There were no reportable injuries during the quarter at our operations and our rolling 12-month All Injury Frequency Rate is currently 0.14 injuries per 200,000 hours worked.
There were also no reportable environmental incidents during the quarter. So it is now over three years since that we had one. During the quarter our operations had some weather related interruptions as it is normal in Q1. Per ton costs increased during the quarter due to the higher strip ratios we had previously discussed and the impact of lower shipments. We continue to focus on maintaining the quality of our equipment and improving the deployment and effectiveness of our preventative maintenance and equipment monitoring programs. At the Antelope mine, we have begun the replacement of a tub of one of our drag lines, which will take two months. As the drag line downtime will reduce our stripping capacity, it has been timed to coincide with the Q2 shoulder season, when we typically have lower shipments.
I will now hand over to Heath to cover the financials before I talk about the 2018 outlook.
Thank you, Colin. Our consolidated adjusted EBITDA for the first quarter was $19.6 million, as