Reports strong cash flow generation on sales volume increase of 72%
to 1.9 million short tons
Records net income of $129.9 million and Adjusted EBITDA of $188.5
million
BROOKWOOD, Ala.--(BUSINESS WIRE)--
Warrior Met Coal, Inc. (NYSE:HCC) (“Warrior” or the “Company”) today
announced results for the second quarter ended June 30, 2017. Warrior is
the leading dedicated U.S. based producer and exporter of high quality
metallurgical (“met”) coal for the global steel industry.
Warrior reported second quarter 2017 net income of $129.9 million, or
$2.46 per diluted share, compared to $108.3 million, or $2.06 per
diluted share, in the first quarter of 2017. Excluding certain
transaction costs related to the Company’s initial public offering,
Adjusted Net Income was $132.9 million, or $2.52 per diluted share, in
the second quarter of 2017. The Company reported Adjusted EBITDA of
$188.5 million in the second quarter of 2017, a 39% increase over the
first quarter. During the second quarter of 2017, the market for high
quality premium met coal was very volatile with global supply
disruptions and the benchmark pricing system being replaced by an
indexation methodology. Warrior was able to capitalize on this market
volatility with respect to both sales volumes and pricing as its second
quarter net realized selling prices were 103% of the second quarter of
2017 industry average index price. Warrior's price realization reflects
its high quality premium product and unique go-to-market strategy.
“Warrior’s highly successful second quarter validates our value
proposition as the only publicly traded ‘pure-play’ hard coking coal
operator in the U.S.,” commented Walt Scheller, CEO of Warrior. “Robust
sales volume growth in a strong price environment resulted in a 167%
increase in our free cash flow compared to the first quarter. We believe
our ability to significantly grow our sales while maintaining our
exceptionally low cost structure will enable us to carry forward this
strong performance over the remainder of the year.”
Operating Results
Warrior continued to make progress in the ramp up of mining operations
toward its historical annual production level of approximately 8.0
million short tons. The Company produced 1.9 million short tons of met
coal in the second quarter of 2017, which represented an increase of 18%
over the first quarter of 2017. “Our mining operations have continued to
grow as we move closer to achieving the nameplate production capacity in
our two mines,” added Mr. Scheller. “As we continue to refine and
improve our operations, I believe Warrior has a great opportunity to
increase production profitably in response to market demand and generate
significant free cash flow.”
Additional Financial Results
Total revenues were $363.4 million for the second quarter of 2017,
including $351.8 million in mining revenues, which consisted of met coal
sales of 1.9 million short tons at an average selling price of $181.14
per short ton. Sales volume increased 72% over the second quarter of
2016 and increased 55% for the first six months of 2017 over the same
period in 2016.
Cost of sales for the second quarter of 2017 were $160.2 million, or
44.1% of total revenues, and includes mining costs, transportation and
royalty costs. Cash cost of sales (free-on-board port) per short ton
decreased by $11.53 to $82.22 in the second quarter compared to the
first quarter of 2017. Selling, general and administrative expenses for
the second quarter of 2017 were $8.7 million, or 2.4% of total revenues.
Depreciation and depletion costs for the second quarter of 2017 were
$19.7 million, or 5.4% of total revenues. Transaction and other costs
associated with the Company’s initial public offering decreased to $3.8
million for the second quarter of 2017. Warrior incurred interest
expense of $0.6 million and recognized income tax expense of $32.8
million for the second quarter of 2017.
Cash Flow and Liquidity
The Company generated strong cash flows from operating activities in the
second quarter of 2017 of $161.4 million. Net working capital decreased
by $12.8 million from the first quarter of 2017. Capital expenditures
for the second quarter 2017 were $16.9 million, resulting in free cash
flow of $144.5 million, which was $90.3 million higher than in the first
quarter. Cash flows used in financing activities were $3.4 million for
the second quarter of 2017.
The Company’s available liquidity as of the end of the quarter was
$255.8 million, consisting of cash and cash equivalents of $155.8
million and $100.0 million available under its Asset-Based Revolving
Credit Agreement.
Company Outlook
In light of the second quarter performance, Warrior is reiterating its
guidance for the full year 2017 as follows:
|
Coal sales
|
|
|
|
5.9 - 6.3 million short tons
|
|
Coal production
| | | |
6.1 - 6.5 million short tons
|
|
Cash cost of sales (free-on-board port)
| | | | $89 - $95 per short ton
|
|
Capital expenditures
| | | | $97 - $117 million |
|
Selling, general and administrative expenses
| | | | $26 - $29 million |
| | | |
|
Factors that may affect outlook include:
- Hard coking coal index pricing
- Number of longwall operation moves and timing of those moves between
quarters. The following are the expected longwall moves for the
remainder of 2017: Q3 - 1 move, Q4 - 2 moves.
- Excludes transaction or other non-recurring costs
The Company does not provide reconciliations of its outlook for cash
cost of sales (free-on-board port) to cost of sales in reliance on the
unreasonable efforts exception provided for under Item 10(e)(1)(i)(B) of
Regulation S-K. The Company is unable, without unreasonable efforts, to
forecast certain items required to develop the meaningful comparable
GAAP cost of sales. These items typically include non-cash asset
retirement obligation accretion expenses, mine idling expenses and other
non-recurring indirect mining expenses that are difficult to predict in
advance in order to include a GAAP estimate.
Use of Non-GAAP Financial Measures
This release contains the use of certain U.S. non-GAAP (“Generally
Accepted Accounting Principles”) financial measures. These non-GAAP
financial measures are provided as supplemental information for
financial measures prepared in accordance with GAAP. Management believes
that these non-GAAP financial measures provide additional insights into
the performance of the Company, and they reflect how management analyzes
Company performance and compares that performance against other
companies. These non-GAAP financial measures may not be comparable to
other similarly titled measures used by other entities. The definition
of these non-GAAP financial measures and a reconciliation of non-GAAP to
GAAP financial measures is provided in the financial tables section of
this release.
Conference Call
The Company will hold a conference call to discuss its second quarter
2017 results today, August 3, 2017, at 4:30 p.m. ET. To listen to the
event live or access an archived recording, please visit http://investors.warriormetcoal.com/.
Analysts and investors who would like to participate in the conference
call should dial 1-866-807-9684 (domestic) or 1-412-317-5415
(international) 10 minutes prior to the start time and reference the
Warrior Met Coal conference call.
Telephone playback will also be available from 7:30 p.m. ET August 3,
2017 through midnight ET on September 5, 2017. The replay will be
available by calling: 1-877-344-7529 (domestic) or 1-412-317-0088
(international) and entering passcode 10109914.
About Warrior Met Coal
Warrior Met Coal is a large scale, low-cost U.S. based producer and
exporter of premium hard coking coal (“HCC”), operating highly efficient
longwall operations in its underground mines located in Alabama. The HCC
that Warrior produces from the Blue Creek coal seam contains very low
sulfur and has strong coking properties and is of a similar quality to
coal referred to as the HCC produced in Australia. The premium nature of
Warrior’s HCC makes it ideally suited as a base feed coal for steel
makers and results in price realizations near the HCC industry index
average. Warrior sells all of its met coal production to steel producers
in Europe, South America and Asia. For more information about Warrior
Met Coal, please visit www.warriormetcoal.com.
Forward-Looking Statements
This press release contains, and the Company’s officers and
representatives may from time to time make, forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended.All statements, other than statements of historical
facts, included in this press release that address activities, events or
developments that the Company expects, believes or anticipates will or
may occur in the future are forward-looking statements.The words
“believe,” “expect,” “anticipate,” “plan,” “intend,” “estimate,”
“project,” “target,” “foresee,” “should,” “would,” “could,” “potential,”
or other similar expressions are intended to identify forward-looking
statements. However, the absence of these words does not mean that the
statements are not forward-looking. These forward-looking statements
represent management’s good faith expectations, projections, guidance or
beliefs concerning future events, and it is possible that the results
described in this press release will not be achieved.These
forward-looking statements are subject to risks, uncertainties and other
factors, many of which are outside of the Company’s control, that could
cause actual results to differ materially from the results discussed in
the forward-looking statements, including, without limitation,
fluctuations or changes in the pricing or demand for the Company’s coal
(or met coal generally) by the global steel industry; legislation and
regulations relating to the Clean Air Act and other environmental
initiatives; regulatory requirements associated with federal, state and
local regulatory agencies, and such agencies’ authority to order
temporary or permanent closure of the Company’s mines; operational,
logistical, geological, permit, license, labor and weather-related
factors, including equipment, permitting, site access, operational risks
and new technologies related to mining; the Company’s obligations
surrounding reclamation and mine closure; inaccuracies in the Company’s
estimates of its met coal reserves; the Company’s ability to develop or
acquire met coal reserves in an economically feasible manner;
significant cost increases and fluctuations, and delay in the delivery
of raw materials, mining equipment and purchased components; competition
and foreign currency fluctuations; fluctuations in the amount of cash
the Company generates from operations, including cash necessary to pay
any special or quarterly dividend or to initiate a stock repurchase
program; the Company’s ability to comply with covenants in its credit
facility; integration of businesses that the Company may acquire in the
future; adequate liquidity and the cost, availability and access to
capital and financial markets; failure to obtain or renew surety bonds
on acceptable terms, which could affect the Company’s ability to secure
reclamation and coal lease obligations; costs associated with
litigation, including claims not yet asserted; and other factors
described in the Company’s filings with the U.S. Securities and Exchange
Commission (“SEC”), including its Registration Statement on Form S-1
(File No. 333-216499) and Form 10-Q for the quarterly period ended June
30, 2017 and other reports filed from time to time with the SEC, which
could cause the Company’s actual results to differ materially from those
contained in any forward-looking statement. The Company’s filings with
the SEC are available on its website at www.warriormetcoal.com
and on the SEC's website at www.sec.gov.
Any forward-looking statement speaks only as of the date on which it
is made, and, except as required by law, the Company does not undertake
any obligation to update or revise any forward-looking statement,
whether as a result of new information, future events or otherwise.New
factors emerge from time to time, and it is not possible for the Company
to predict all such factors.
Note Regarding “Predecessor” Comparisons
The Company’s results on a “Predecessor” basis relate to the assets
acquired and liabilities assumed by Warrior Met Coal, LLC from Walter
Energy, Inc. in the asset acquisition described in the Company’s
Registration Statement on Form S-1 (File No. 333-216499) and the related
periods ending on or prior to March 31, 2016. The Company’s results on a
“Successor” basis relate to Warrior Met Coal, LLC and its subsidiaries
for periods beginning as of April 1, 2016 and Warrior Met Coal, Inc.
after giving effect to its corporate conversion on April 12, 2017 from a
Delaware limited liability company into a Delaware corporation. The
historical costs and expenses reflected in the Predecessor combined
results of operations include an allocation for certain corporate
functions historically provided by Walter Energy, Inc. Certain functions
critical to the Predecessor’s operations were centralized and managed by
Walter Energy, Inc. Historically, the centralized functions have
included executive senior management, financial reporting, financial
planning and analysis, accounting, shared services, information
technology, tax, risk management, treasury, legal, human resources, and
strategy and development. The costs of each of these services has been
allocated to the Predecessor on the basis of the Predecessor’s relative
headcount, revenue and total assets to that of Walter Energy, Inc.
|
|
| |
|
|
| |
WARRIOR MET COAL, INC. CONDENSED STATEMENTS OF OPERATIONS ($ in thousands, except per share) |
| | | | | | |
|
| | | Successor (Unaudited) | | | | Predecessor |
| | | For the three months ended
June 30, |
|
| For the six
months ended
June 30, | | | | For the three
months ended
March 31, |
| | | 2017 |
|
| 2016 | | | 2017 | | | | 2016 |
|
Revenues:
| | | | | | | | | | | | | |
|
Sales
| | |
$
|
351,788
| | | |
$
|
85,415
| | | |
$
|
592,844
| | | | |
$
|
65,154
| |
|
Other revenues
| | |
11,582
|
| | |
6,059
|
| | |
24,490
|
| | | |
6,229
|
|
|
Total revenues
| | |
363,370
|
| | |
91,474
|
| | |
617,334
|
| | | |
71,383
|
|
|
Costs and expenses:
| | | | | | | | | | | | | |
|
Cost of sales (exclusive of items shown separately below)
| | |
160,152
| | | |
103,866
| | | |
266,296
| | | | |
72,297
| |
|
Cost of other revenues (exclusive of items shown separately below)
| | |
7,795
| | | |
5,126
| | | |
15,974
| | | | |
4,698
| |
|
Depreciation and depletion
| | |
19,650
| | | |
15,821
| | | |
34,232
| | | | |
28,958
| |
|
Selling, general and administrative
| | |
8,660
| | | |
5,815
| | | |
13,830
| | | | |
9,008
| |
|
Other postretirement benefits
| | |
—
| | | |
—
| | | |
—
| | | | |
6,160
| |
|
Restructuring costs
| | |
—
| | | |
—
| | | |
—
| | | | |
3,418
| |
|
Transaction and other costs
| | |
3,837
|
| | |
10,475
|
| | |
12,873
|
| | | |
—
|
|
|
Total costs and expenses
| | |
200,094
|
| | |
141,103
|
| | |
343,205
|
| | | |
124,539
|
|
|
Operating income (loss)
| | |
163,276
| | | |
(49,629
|
)
| | |
274,129
| | | | |
(53,156
|
)
|
|
Interest expense, net
| | |
(642
|
)
| | |
(434
|
)
| | |
(1,250
|
)
| | | |
(16,562
|
)
|
|
Reorganization items, net
| | |
—
|
| | |
—
|
| | |
—
|
| | | |
7,920
|
|
|
Income (loss) before income tax expense
| | |
162,634
| | | |
(50,063
|
)
| | |
272,879
| | | | |
(61,798
|
)
|
|
Income tax expense
| | |
32,769
|
| | |
—
|
| | |
34,706
|
| | | |
18
|
|
|
Net income (loss)
| | |
$
|
129,865
|
| | |
$
|
(50,063
|
)
| | |
$
|
238,173
|
| | | |
$
|
(61,816
|
)
|
|
Basic and diluted net income (loss) per share (1):
| | | | | | | | | | | | | |
|
Net income (loss) per share—basic and diluted
| | |
$
|
2.46
|
| | |
$
|
(0.95
|
)
| | |
$
|
4.52
|
| | | | |
|
Weighted average number of shares outstanding—basic and diluted
| | |
52,721
|
| | |
52,640
|
| | |
52,702
|
| | | | |
|
Dividends per share:
| | |
$
|
0.05
|
| | |
$
|
—
|
| | |
$
|
3.61
|
| | | | |
| | | | | | | | | | | | | | | | | | |
|
| (1) |
On April 12, 2017, in connection with the Company’s initial public
offering (“IPO”), Warrior Met Coal, LLC filed a certificate of
conversion, whereby Warrior Met Coal, LLC effected a corporate
conversion from a Delaware limited liability company to a Delaware
corporation and changed its name to Warrior Met Coal, Inc. In
connection with this corporate conversion, the Company filed a
certificate of incorporation. Pursuant to the Company’s certificate
of incorporation, the Company is authorized to issue up to
140,000,000 shares of common stock $0.01 par value per share and
10,000,000 shares of preferred stock $0.01 par value per share. The
number of shares and per share amounts of common stock have been
retroactively recast to reflect the corporate conversion.
|
|
|
| |
|
| |
|
|
| |
WARRIOR MET COAL, INC. QUARTERLY SUPPLEMENTAL FINANCIAL DATA AND RECONCILIATION OF NON-GAAP FINANCIAL MEASURES |
|
|
QUARTERLY SUPPLEMENTAL FINANCIAL DATA: |
| | | | | | | |
|
| | | | Successor (Unaudited) | | | | Predecessor |
| | | | For the three months ended
June 30, |
|
| For the six
months ended
June 30, | | | | For the three
months ended
March 31, |
|
(short tons in thousands)(1) | | | 2017 |
|
| 2016 | | | 2017 | | | | 2016 |
|
Tons sold
| | |
1,942
| | | |
1,127
| | | |
3,069
| | | | |
856
| |
|
Tons produced
| | |
1,909
| | | |
912
| | | |
3,522
| | | | |
883
| |
|
Average selling price
| | |
$
|
181.14
| | | |
$
|
75.78
| | | |
$
|
193.17
| | | | |
$
|
76.11
| |
|
HCC benchmark/index price (2) | | |
$
|
176.00
| | | |
$
|
76.20
| | | |
$
|
217.30
| | | | |
$
|
73.50
| |
|
Cash cost of sales (free on board port) per short ton (3) | | |
$
|
82.22
| | | |
$
|
61.79
| | | |
$
|
86.45
| | | | |
$
|
63.30
| |
|
|
(1) |
1 short ton is equivalent to 0.907185 metric tons.
|
(2) |
Beginning in the second quarter of 2017, a quarterly benchmark for
hard coking coal was not set and was replaced with an index
methodology.
|
|
|
| RECONCILIATION OF CASH COST OF SALES (FREE-ON-BOARD PORT) TO COST
OF SALES REPORTED UNDER U.S. GAAP: |
|
|
| | | | Successor (Unaudited) | | | | Predecessor |
|
(in thousands)
| | | For the three months ended
June 30, | | | For the six
months ended
June 30, | | | | For the three
months ended
March 31, |
| | | | 2017 | | | 2016 | | | 2017 | | | | 2016 |
|
Cost of sales
| | |
$
|
160,152
| | | |
$
|
103,866
| | | |
$
|
266,296
| | | | |
$
|
72,297
| |
|
Asset retirement obligation accretion
| | |
(401
|
)
| | |
(267
|
)
| | |
(882
|
)
| | | |
(93
|
)
|
|
Stock compensation expense
| | |
(75
|
)
| | |
—
| | | |
(75
|
)
| | | |
—
| |
|
Mine No. 4 idle costs
| | |
—
| | | |
(5,342
|
)
| | |
—
| | | | |
(10,173
|
)
|
|
VEBA contribution
| | |
—
| | | |
(25,000
|
)
| | |
—
| | | | |
—
| |
|
Other (operating overhead, etc.)
| | |
—
|
| | |
(3,614
|
)
| | |
—
|
| | | |
(7,843
|
)
|
|
Cash cost of sales (free on board port)(3) | | |
$
|
159,676
|
| | |
$
|
69,643
|
| | |
$
|
265,339
|
| | | |
$
|
54,188
|
|
| | | | | | | | | | | | | | | | | | | | | |
|
(3) |
Cash cost of sales (free on board port) is based on reported cost
of sales and includes items such as freight, royalties, labor,
fuel and other similar production and sales cost items, and may be
adjusted for other items that, pursuant to GAAP, are classified in
the Condensed Statements of Operations as costs other than cost of
sales, but relate directly to the costs incurred to produce met
coal. Our cash cost of sales per short ton is calculated as cash
cost of sales divided by the short tons sold. Cash cost of sales
per short ton is a non-GAAP financial measure which is not
calculated in conformity with U.S. Generally Accepted Accounting
Principles (GAAP) and should be considered supplemental to, and
not as a substitute or superior to financial measures calculated
in conformity with GAAP. We believe cash cost of sales per ton is
a useful measure of performance and we believe it aids some
investors and analysts in comparing us against other companies to
help analyze our current and future potential performance. Cash
cost of sales per ton may not be comparable to similarly titled
measures used by other companies.
|
|
|
| |
|
| |
|
|
| |
WARRIOR MET COAL, INC. QUARTERLY SUPPLEMENTAL FINANCIAL DATA AND RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (CONTINUED) |
|
|
RECONCILIATION OF ADJUSTED EBITDA TO AMOUNTS REPORTED UNDER
U.S. GAAP: |
| | | | | | | |
|
| | | | Successor
(Unaudited) | | | | Predecessor |
| | | | For the three months ended
June 30, |
|
| For the six
months ended
June 30, | | | | For the three
months ended
March 31, |
|
(in thousands)
| | | 2017 |
|
| 2016 | | | 2017 | | | | 2016 |
|
Net income (loss)
| | |
$
|
129,865
| | | |
$
|
(50,063
|
)
| | |
$
|
238,173
| | | | |
$
|
(61,816
|
)
|
|
Interest expense, net
| | |
642
| | | |
434
| | | |
1,249
| | | | |
16,562
| |
|
Income tax expense
| | |
32,769
| | | |
—
| | | |
34,706
| | | | |
18
| |
|
Depreciation and depletion
| | |
19,650
| | | |
15,821
| | | |
34,232
| | | | |
28,958
| |
|
Asset retirement obligation accretion
| | |
797
| | | |
939
| | | |
1,792
| | | | |
1,169
| |
|
Stock compensation expense
| | |
922
| | | |
125
| | | |
922
| | | | |
390
| |
|
Transaction and other costs
| | |
3,837
| | | |
10,475
| | | |
12,873
| | | | |
—
| |
|
Reorganization items, net
| | |
—
| | | |
—
| | | |
—
| | | | |
(7,920
|
)
|
|
Restructuring costs
| | |
—
| | | |
—
| | | |
—
| | | | |
3,418
| |
|
Mine No. 4 idle costs
| | |
—
| | | |
5,342
| | | |
—
| | | | |
10,173
| |
|
VEBA contribution
| | |
—
|
| | |
25,000
|
| | |
—
|
| | | |
—
|
|
|
Adjusted EBITDA (4) | | |
$
|
188,482
|
| | |
$
|
8,073
|
| | |
$
|
323,947
|
| | | |
$
|
(9,048
|
)
|
| | | | | | | | | | | | | | | | | | | | | |
|
(4) |
Adjusted EBITDA is defined as net income (loss) before net
interest expense, income tax expense, depreciation and depletion,
non-cash asset retirement obligation accretion, non-cash stock
compensation expense, transaction and other costs, net
reorganization items, restructuring costs, Voluntary Employees'
Beneficiary Association ("VEBA") contribution and Mine No. 4 idle
costs. Adjusted EBITDA is not a measure of financial performance
in accordance with GAAP, and we believe items excluded from
Adjusted EBITDA are significant to a reader in understanding and
assessing our financial condition. Therefore, Adjusted EBITDA
should not be considered in isolation, nor as an alternative to
net income, income from operations, cash flows from operations or
as a measure of our profitability, liquidity or performance under
GAAP. We believe that Adjusted EBITDA presents a useful measure of
our ability to incur and service debt based on ongoing operations.
Furthermore, analogous measures are used by industry analysts to
evaluate our operating performance. Investors should be aware that
our presentation of Adjusted EBITDA may not be comparable to
similarly titled measures used by other companies.
|
|
|
| RECONCILIATION OF ADJUSTED NET INCOME TO AMOUNTS REPORTED UNDER
U.S. GAAP: |
|
|
| | | | Successor
(Unaudited) | | | | Predecessor |
|
(in thousands, except per share amounts)
| | | For the three months ended
June 30, | | | For the six
months ended
June 30, | | | | For the three
months ended
March 31, |
| | | | 2017 | | | 2016 | | | 2017 | | | | 2016 |
|
Net income (loss)
| | |
$
|
129,865
| | | |
$
|
(50,063
|
)
| | |
$
|
238,173
| | | | |
$
|
(61,816
|
)
|
|
Transaction and other costs, net of tax
| | |
3,064
| | | |
10,475
| | | |
11,236
| | | | |
—
| |
|
Reorganization items, net, net of tax
| | |
—
| | | |
—
| | | |
—
| | | | |
(7,918
|
)
|
|
Restructuring costs, net of tax
| | |
—
| | | |
—
| | | |
—
| | | | |
3,417
| |
|
Mine No. 4 idle costs, net of tax
| | |
—
| | | |
5,342
| | | |
—
| | | | |
10,170
| |
|
VEBA contribution
| | |
—
|
| | |
25,000
|
| | |
—
|
| | | |
—
|
|
|
Adjusted net income (loss) (5) | | |
$
|
132,929
|
| | |
$
|
(9,246
|
)
| | |
$
|
249,409
|
| | | |
$
|
(56,147
|
)
|
| | | | | | | | | | | | | |
|
|
Weighted average number of basic and diluted shares outstanding
| | |
52,721
| | | |
52,640
| | | |
52,702
| | | | | |
| | | | | | | | | | | | | |
|
|
Adjusted basic and diluted income (loss) per share:
| | |
$
|
2.52
| | | |
(0.18
|
)
| | |
$
|
4.73
| | | | | |
| | | | | | | | | | | | | | | | | | |
|
(5) |
Adjusted net income (loss) is defined as net income (loss) net of
the following items net of tax (based on each respective period's
effective tax rate): transaction and other costs, reorganization
items, net, restructuring costs, Mine No. 4 idle costs and VEBA
contributions. Adjusted net income (loss) is not a measure of
financial performance in accordance with GAAP, and we believe
items excluded from adjusted net income (loss) are significant to
the reader in understanding and assessing our results of
operations. Therefore, adjusted net income (loss) should not be
considered in isolation, nor as an alternative to net income under
GAAP. We believe adjusted net income (loss) is a useful measure of
performance and we believe it aids some investors and analysts in
comparing us against other companies to help analyze our current
and future potential performance. Adjusted net income (loss) may
not be comparable to similarly titled measures used by other
companies.
|
|
|
| |
|
| |
|
|
| |
WARRIOR MET COAL, INC. CONDENSED STATEMENTS OF CASH FLOWS ($ in thousands) |
| | | | | | | |
|
| | | | Successor
(Unaudited) | | | | Predecessor |
| | | | For the three months ended
June 30, |
|
| For the six
months ended
June 30, | | | | For the three
months ended
March 31, |
| | | | 2017 |
|
| 2016 | | | 2017 | | | | 2016 |
|
OPERATING ACTIVITIES:
| | | | | | | | | | | | | |
|
Net income (loss)
| | |
$
|
129,865
| | | |
$
|
(50,063
|
)
| | |
$
|
238,173
| | | | |
$
|
(61,816
|
)
|
|
Non-cash adjustments to reconcile net income (loss) to net cash
provided by (used in) operating activities
| | |
21,903
| | | |
17,057
| | | |
37,942
| | | | |
21,817
| |
|
Changes in operating assets and liabilities:
| | | | | | | | | | | | | |
|
Trade accounts receivable
| | |
3,629
| | | |
(28,041
|
)
| | |
(26,655
|
)
| | | |
15,097
| |
|
Other receivables
| | |
1,442
| | | |
124
| | | |
1,200
| | | | |
1,070
| |
|
Inventories
| | |
(4,339
|
)
| | |
14,677
| | | |
(32,931
|
)
| | | |
677
| |
|
Prepaid expenses and other current assets
| | |
(2,507
|
)
| | |
(9,675
|
)
| | |
(4,674
|
)
| | | |
13,020
| |
|
Accounts payable
| | |
(2,459
|
)
| | |
(7,349
|
)
| | |
7,778
| | | | |
(15,338
|
)
|
|
Accrued expenses and other current liabilities
| | |
17,072
| | | |
28,593
| | | |
10,017
| | | | |
(16,083
|
)
|
|
Other
| | |
(3,202
|
)
| | |
5,789
|
| | |
(3,893
|
)
| | | |
858
|
|
|
Net cash provided by (used in) operating activities
| | |
161,404
|
| | |
(28,888
|
)
| | |
226,957
|
| | | |
(40,698
|
)
|
|
INVESTING ACTIVITIES:
| | |
| | |
| | |
| | | |
|
|
Net cash used in investing activities
| | |
(16,885
|
)
| | |
(34,230
|
)
| | |
(28,263
|
)
| | | |
(5,422
|
)
|
|
FINANCING ACTIVITIES:
| | |
| | |
| | |
| | | |
|
|
Net cash provided by (used in) financing activities
| | |
(3,439
|
)
| | |
194,720
|
| | |
(194,204
|
)
| | | |
(6,240
|
)
|
|
Net increase (decrease) in cash and cash equivalents and restricted
cash
| | |
141,080
| | | |
131,602
| | | |
4,490
| | | | |
(52,360
|
)
|
|
Cash and cash equivalents and restricted cash at beginning of period
| | |
16,066
|
| | |
—
|
| | |
152,656
|
| | | |
84,462
|
|
|
Cash and cash equivalents and restricted cash at end of period
| | |
$
|
157,146
|
| | |
$
|
131,602
|
| | |
$
|
157,146
|
| | | |
$
|
32,102
|
|
| | | | | | | | | | | | | | | | | | | | | |
|
| RECONCILIATION OF FREE CASH FLOW TO AMOUNTS REPORTED UNDER U.S.
GAAP: |
|
|
| | | | Successor
(Unaudited) | | | | Predecessor |
|
(in thousands)
| | | For the three months ended
June 30, | | | For the six
months ended
June 30, | | | | For the three
months ended
March 31, |
| | | | 2017 | | | 2016 | | | 2017 | | | | 2016 |
|
Net cash provided by (used in) operating activities
| | |
161,404
| | | |
(28,888
|
)
| | |
$
|
226,957
| | | | |
$
|
(40,698
|
)
|
|
Purchases of property, plant and equipment
| | |
(16,885
|
)
| | |
(6,014
|
)
| | |
(28,263
|
)
| | | |
(5,422
|
)
|
|
Free cash flow (6) | | |
144,519
|
| | |
(34,902
|
)
| | |
$
|
198,694
|
| | | |
$
|
(46,120
|
)
|
| | | | | | | | | | | | | | | | | | | |
|
|
|
(6) |
Free cash flow is defined as net cash provided by (used in)
operating activities less purchases of property, plant and
equipment. Free cash flow is not a measure of financial
performance in accordance with GAAP, and we believe items adjusted
for from net cash provided by (used in) operating activities are
significant to the reader in understanding and assessing our
results of operations. Therefore, free cash flow should not be
considered in isolation, nor as an alternative to net cash
provided by (used in) operating activities under GAAP. We believe
free cash flow is a useful measure of performance and we believe
it aids some investors and analysts in comparing us against other
companies to help analyze our current and future potential
performance. Free cash flow may not be comparable to similarly
titled measures used by other companies.
|
|
|
| |
|
| |
| WARRIOR MET COAL, INC. CONDENSED BALANCE SHEETS ($ in thousands) |
| | | |
|
| | | | Successor |
| | | | June 30, 2017
(Unaudited) |
|
| December 31,
2016 |
| ASSETS | | | | | | |
|
Current assets:
| | | | | | |
|
Cash and cash equivalents
| | |
$
|
155,792
| | | |
$
|
150,045
| |
|
Short-term investments
| | |
17,501
| | | |
17,501
| |
|
Trade accounts receivable
| | |
92,551
| | | |
65,896
| |
|
Other receivables
| | |
4,700
| | | |
5,901
| |
|
Inventories, net
| | |
75,286
| | | |
39,420
| |
|
Prepaid expenses
| | |
16,684
|
| | |
12,010
|
|
|
Total current assets
| | |
362,514
| | | |
290,773
| |
|
Mineral interests, net
| | |
134,597
| | | |
143,231
| |
|
Property, plant and equipment, net
| | |
495,072
| | | |
496,959
| |
|
Other long-term assets
| | |
18,178
|
| | |
16,668
|
|
|
Total assets
| | |
$
|
1,010,361
|
| | |
$
|
947,631
|
|
| LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | |
|
Current liabilities:
| | | | | | |
|
Accounts payable
| | |
$
|
13,821
| | | |
$
|
6,043
| |
|
Accrued expenses
| | |
61,791
| | | |
47,339
| |
|
Other current liabilities
| | |
4,622
| | | |
8,405
| |
|
Current portion of long-term debt
| | |
2,906
|
| | |
2,849
|
|
|
Total current liabilities
| | |
83,140
| | | |
64,636
| |
|
Long-term debt
| | |
2,257
| | | |
3,725
| |
|
Deferred income taxes
| | |
1,944
| | | |
1,944
| |
|
Asset retirement obligations
| | |
97,708
| | | |
96,050
| |
|
Other long-term liabilities
| | |
28,192
|
| | |
28,309
|
|
|
Total liabilities
| | |
213,241
| | | |
194,664
| |
|
Stockholders’ Equity (1):
| | | | | | |
|
Common stock, $0.01 par value per share (Authorized-140,000,000
shares, issued and outstanding-53,444,810 and 53,442,532 shares,
respectively)
| | |
534
| | | |
533
| |
|
Preferred stock, $0.01 par value per share (10,000,000 shares
authorized, no shares issued and outstanding)
| | |
—
| | | |
—
| |
|
Additional paid in capital
| | |
610,759
| | | |
802,107
| |
|
Retained earnings (accumulated deficit)
| | |
185,827
|
| | |
(49,673
|
)
|
|
Total stockholders’ equity
| | |
797,120
|
| | |
752,967
|
|
|
Total liabilities and stockholders’ equity
| | |
$
|
1,010,361
|
| | |
$
|
947,631
|
|
| | | | | | | | | | |
|
(1) |
On April 12, 2017, in connection with the Company’s initial public
offering (“IPO”), Warrior Met Coal, LLC filed a certificate of
conversion, whereby Warrior Met Coal, LLC effected a corporate
conversion from a Delaware limited liability company to a Delaware
corporation and changed its name to Warrior Met Coal, Inc. In
connection with this corporate conversion, the Company filed a
certificate of incorporation. Pursuant to the Company’s
certificate of incorporation, the Company is authorized to issue
up to 140,000,000 shares of common stock, $0.01 par value per
share, and 10,000,000 shares of preferred stock, $0.01 par value
per share. The number of shares and per share amounts of common
stock have been retroactively recast to reflect the corporate
conversion.
|
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20170803006252/en/
Warrior Met Coal, Inc.
For Investors:
Dale W. Boyles,
205-554-6129
[email protected]
or
For
Media:
William Stanhouse, 205-554-6131
[email protected]
Source: Warrior Met Coal, Inc.