Newspaper article THE JOURNAL RECORD

Tulsa-Based Alliance Holdings Profits Up 6.1%

Newspaper article THE JOURNAL RECORD

Tulsa-Based Alliance Holdings Profits Up 6.1%

Article excerpt

Alliance Holdings GP LP recorded a 6.1-percent rise in second- quarter net income to $20.4 million, based on solid second-quarter results by the Tulsa coal producer Alliance Resource Partners.

That spurred the owner and controller of Alliance Resource Management, which manages Alliance Resource Partners, to boost its initial distribution forecast 16.2 percent above its prospectus promise of just three months ago.

Alliance Holdings recorded a profit decline per limited partner unit - to 37 cents from 41 cents a year ago - due to a 12.5 million- unit increase in the number of outstanding units through its May 9 initial public offering. However, that far exceeded the 32-cent estimate quoted by Zacks Investment Research of Chicago. Even so, the Nasdaq units closed Monday down 11 cents at $21.42. Volume totaled 37,975 shares, less than a third of the daily average.

Through Alliance Resource Management, Alliance Holdings has a 1.98-percent general partner interest and the incentive distribution rights in Alliance Resource Partners, as well as 15.5 million shares of its stock. Alliance Holdings posted a profit of $19.2 million for the second quarter of 2005.

For the six months ended June 30, Alliance Holdings enjoyed a 17.3-percent rise in net income to $43.3 million, or 85 cents per unit, from $36.9 million, or 78 cents per unit, the prior year.

Our underlying assets generated solid results for the second quarter and set operating and financial records during the first half of 2006, said Alliance Holdings President and Chief Executive Joseph W. Craft III. As a result of this strong performance and our confidence in the future growth potential of ARLP, we are pleased to increase the initial distribution to our unit-holders by 16.2 percent over the expected distribution reflected in our prospectus.

On Monday, Alliance Resource Partners paid a second-quarter cash distribution of 50 cents per unit, or $2 on an annualized basis. From this, Alliance Holdings expects to receive $13. …

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