Management’s Discussion and Analysis
MD&A Quicklinks
- Results of Operations
- Retained Liabilities and Assets of Former Natural Resource Operations
- Executive Overview
- Legacy Liabilities and Assets
- Projected Payments and Expenses of Retained Coal Liabilities and Administrative Costs
- Company-Sponsored Retiree Medical Benefits Obligations and VEBA
- Health Benefit Act Obligations
- Black Lung Obligations
- Withdrawal Liabilities
- Discontinued Operations
- Sale of Other Natural Resources Assets
- Liquidity and Capital Resources
Liquidity and Capital Resources
Financing Activities
| Summary of Financing Activities | Years Ended December 31, |
|||
|---|---|---|---|---|
| (In millions) | 2004 | 2003 | 2002 | |
| Short-term debt | $ | (9.1) | (15.1) | 9.1 |
| Revolving Facility | (12.5) | (98.1) | (7.2) | |
| Senior Notes | - | - | 20.0 | |
| Other | (17.5) | (5.6) | (22.2) | |
| Net borrowings (repayments) of debt | (39.1) | (118.8) | (0.3) | |
| Repurchase of stock | - | - | (11.1) | |
| Dividends | (5.4) | (5.3) | (5.7) | |
| Proceeds from exercise of stock options and other | 22.4 | 1.1 | 0.4 | |
| Cash flows from financing activities | $ | (22.1) | (123.0) | (16.7) |
The Company’s day-to-day operating liquidity needs are typically financed by short-term debt, the Company’s accounts receivable securitization facility, and the Company’s Revolving Facility and Letter of Credit Facility, both of which are described below.
Under a share repurchase program authorized by the Board, the Company redeemed all its outstanding shares of Convertible Preferred Stock for $10.8 million in 2002.
The Company paid quarterly dividends on its common stock at an annual rate of $0.10 per share in each of the last three years. Dividends paid on common stock totaled $5.4 million in 2004, $5.3 million in 2003 and $5.2 million in 2002. Dividends paid on the Convertible Preferred Stock amounted to $0.5 million in 2002.
Future dividends are dependent on the earnings, financial condition, cash flow and business requirements of the Company, as determined by the Board. In January 2005, the Board declared a quarterly cash dividend of $0.025 per share of common stock, payable on March 1, 2005 to shareholders of record on February 8, 2005.