Sales volume increases 88% compared to prior year period to 2.1
million short tons
Production volume increases 30% compared to prior year period to 2.1
million short tons
Company records net income of $178.7 million and Adjusted EBITDA of
$216.4 million
BROOKWOOD, Ala.--(BUSINESS WIRE)--
Warrior Met Coal, Inc. (NYSE:HCC) (“Warrior” or the “Company”) today
announced results for the first quarter ended March 31, 2018. Warrior is
the leading dedicated U.S.-based producer and exporter of high quality
metallurgical (“met”) coal for the global steel industry.
Warrior reported first quarter 2018 net income of $178.7 million, or
$3.36 per diluted share, compared to net income of $108.3 million, or
$2.06 per diluted share, in the first quarter of 2017. Excluding
one-time transaction and other expenses, adjusted earnings per share
were $3.42 per diluted share in the first quarter of 2018, a 54%
increase over the same period in 2017. The Company reported Adjusted
EBITDA of $216.4 million in the first quarter of 2018, compared to
Adjusted EBITDA of $135.5 million in the prior year period. The market
for high quality premium met coal continued to be strong in the first
quarter, reflecting resilience in global steel production, as well as
the effects of met coal supply disruptions in Australia.
“Warrior’s results in the first quarter continue to reflect the strong
demand for our premium met coal, as well as our industry leading
margins,” commented Walt Scheller, CEO of Warrior. “Our record-setting
production and sales volumes, coupled with high price realization and
our low-cost structure, enabled us to achieve strong free cash flow
conversion. These robust results continue to validate our highly focused
business strategy as a premium 'pure-play' met coal producer.”
Operating Results
The Company produced 2.1 million short tons of met coal in the first
quarter of 2018, 30% more than the amount produced in the first quarter
of 2017. “By taking advantage of the strong pricing environment for our
premium met coal, we are on track to meet our previously established
guidance for the full year 2018,” Mr. Scheller added.
Additional Financial Results
Total revenues were $421.8 million for the first quarter of 2018,
including $412.9 million in mining revenues, which consisted of met coal
sales of 2.1 million short tons at an average net selling price of $195
per short ton, net of demurrage and other charges. Sales volume
increased 88% over the first quarter of 2017, reflecting both increased
production levels and high demand from customers. Warrior capitalized on
the strong pricing environment in the quarter by achieving a gross price
realization of 99%. The Company's gross price realization now represents
a volume weighted-average calculation of our daily realized price per
ton based on gross sales, which excludes demurrage and other charges, as
a percentage of the Platts Premium Low Volatility ("LV") Free-On-Board
("FOB") Australia Index price (the "Platts Index").
Cost of sales for the first quarter of 2018 were $190.7 million, or
46.2% of mining revenues, and included mining costs, transportation and
royalty costs. Cash cost of sales (free-on-board port) per short ton
decreased to $89.82 in the first quarter of 2018 from the first quarter
of 2017, primarily due to higher sales volumes.
Selling, general and administrative expenses for the first quarter of
2018 were $8.2 million, or 2.0% of total revenues. Transaction and other
expenses were $3.3 million in the first quarter of 2018 and were related
to the issuance of $125.0 million in aggregate principal amount of the
Company's 8.00% Senior Secured Notes due 2024 (the "New Notes").
Depreciation and depletion costs for the first quarter of 2018 were
$24.6 million, or 5.8% of total revenues. Warrior incurred interest
expense of $8.6 million during the first quarter of 2018, which was
higher than previous quarters due to the incurrence of interest on the
Notes (as defined below). The Company did not incur any income tax
expense for the first quarter of 2018 due to its planned utilization of
net operating losses (“NOLs”).
Cash Flow and Liquidity
The Company continued to generate strong cash flows from operating
activities in the first quarter of 2018 of $193.7 million, compared to
$65.6 million in the first quarter of 2017. Net working capital,
excluding cash, increased by $9.0 million from the fourth quarter of
2017, primarily due to the higher accounts receivable on higher sales
volumes. Capital expenditures for the first quarter of 2018 were $22.5
million, resulting in free cash flow of $171.2 million, which was $117.0
million higher than in the prior year period. Spending on sustaining and
discretionary capital expenditures included a down payment on a new set
of shields and the new portal at Mine 7. Cash flows provided by
financing activities increased by $376.0 million for the quarter when
compared to the prior year period.
The Company’s available liquidity as of March 31, 2018 was $422.0
million, consisting of cash and cash equivalents of $322.0 million and
$100.0 million available under its Asset-Based Revolving Credit
Agreement.
Company Outlook
The Company’s outlook is subject to many risks that may impact
performance, such as market conditions in the steel and met coal
industries, overall global economic and competitive conditions, all as
more fully described under "Forward-Looking Statements." In light of the
Company's successful first quarter performance, NOL carryforwards and
expected market conditions in 2018, Warrior is updating its guidance for
the full year 2018 as indicated below. Interest expense has been updated
to reflect the New Notes and the number of and timing of longwall moves
has been updated.
|
|
| |
|
Coal sales
| | |
6.8 - 7.3 million short tons
|
|
Coal production
| | |
6.8 - 7.3 million short tons
|
|
Cash cost of sales (free-on-board port)
| | | $89 - $95 per short ton
|
|
Capital expenditures
| | | $100 - $120 million |
|
Selling, general and administrative expenses
| | | $30 - $33 million |
|
Interest expense
| | | $40 - $42 million |
|
Cash tax rate
| | |
0%
|
| | |
|
The Company’s guidance for capital expenditures consists of sustaining
capital spending of approximately $70 - $83 million, including
regulatory and gas requirements, and discretionary capital spending of
$30 - $37 million for various operational improvements.
Key factors that may affect outlook include:
-
HCC index pricing
-
Planned longwall moves - 2 in Q3 and 1 in Q4
-
Exclusion of 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
Generally Accepted Accounting Principles ("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.
Stock Repurchase Program
The Company also announced today that its board of directors (the
“Board”) has approved a stock repurchase program (the “stock repurchase
program”) that authorizes repurchases of up to an aggregate of $40.0
million of its outstanding common stock. The stock repurchase program
does not require the Company to repurchase a specific number of shares
or have an expiration date. The Company is not obligated to purchase any
specific number of shares under its stock repurchase program, and the
stock repurchase program may be suspended or discontinued by the Board
at any time without prior notice.
Under the stock repurchase program, the Company may repurchase shares of
its common stock from time to time, in amounts, at prices and at such
times as the Company deems appropriate, subject to market and industry
conditions, share price, regulatory requirements as determined from time
to time by the Company and other considerations. The Company’s
repurchases may be executed using open market purchases or privately
negotiated transactions in accordance with applicable securities laws
and regulations, including Rule 10b-18 of the Securities Exchange Act of
1934, as amended (the “Exchange Act”) and repurchases may be executed
pursuant to Rule 10b5-1 under the Exchange Act. Repurchases will be
subject to limitations in the Company's asset-based revolving credit
agreement (the “ABL Facility”) and the indenture dated as of November 2,
2017, as amended (the “Indenture”). The Company intends to fund
repurchases under the stock repurchase program from cash on hand and/or
other sources of liquidity.
Senior Secured Notes Offering and Special Dividend
On March 1, 2018, the Company consummated its previously announced
private offering (the “Offering”) of the New Notes to qualified
institutional buyers pursuant to Rule 144A under the Securities Act of
1933, as amended (the “Securities Act”), and to certain non-U.S. persons
in transactions outside the United States in accordance with Regulation
S under the Securities Act. The New Notes were offered as additional
notes under the Indenture, pursuant to which Warrior previously issued
$350.0 million aggregate principal amount of 8.00% Senior Secured Notes
due 2024 (the “Existing Notes” and together with the New Notes, the
"Notes").
On April 3, 2018, the Company used the net proceeds of the Offering,
together with cash on hand, to declare a special cash dividend of
approximately $6.53 per share of Warrior’s common stock, par value $0.01
per share, totaling an aggregate payment of $350 million, which was paid
on April 20, 2018 to stockholders of record as of the close of business
on April 13, 2018.
Regular Quarterly Dividend
On April 24, 2018, the Board declared a regular quarterly cash dividend
of $0.05 per share, totaling approximately $2.7 million, which will be
paid on May 11, 2018 to stockholders of record as of the close of
business on May 4, 2018.
Use of Non-GAAP Financial Measures
This release contains the use of certain U.S. non-GAAP 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 are provided in
the financial tables section of this release.
Conference Call
The Company will hold a conference call to discuss its first quarter
2018 results today, May 2, 2018, 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 1-844-340-9047 (domestic) or 1-412-858-5206
(international) 10 minutes prior to the start time and reference the
Warrior conference call.
Telephone playback will also be available from 6:30 p.m. ET May 2, 2018
through 6:30 p.m. ET on May 9, 2018. The replay will be available by
calling: 1-877-344-7529 (domestic) or 1-412-317-0088 (international) and
entering passcode 10117969.
About Warrior
Warrior is a large scale, low-cost U.S. based producer and exporter of
premium 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
premium 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 Platts Index price. Warrior sells all of
its met coal production to steel producers in Europe, South America and
Asia. For more information about Warrior, 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 and Section 21E
of the Exchange Act.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, including statements regarding sales and production growth,
ability to maintain cost structure, demand, the future direction of
prices, expected capital expenditures, future effective income tax rates
or the Company's purchases of shares of its common stock pursuant to the
stock repurchase program or otherwise.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; federal and state tax
legislation; changes in interpretation or assumptions and/or updated
regulatory guidance regarding the Tax Cuts and Jobs Act of 2017;
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
expectations regarding its future tax rate as well as its ability to
effectively utilize its NOLs; 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 repurchase any of its common
stock; the Company’s ability to comply with covenants in its ABL
Facility or the Indenture; 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 Form 10-K for the year ended December
31, 2017, Form 10-Q for the quarterly period ended March 31, 2018 and
other reports filed from time to time with the Securities and Exchange
Commission (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.
|
|
| |
| WARRIOR MET COAL, INC. |
| CONDENSED STATEMENTS OF OPERATIONS |
| ($ in thousands, except per share) |
| UNAUDITED |
| | |
|
| | | For the three months ended
March 31, |
| | | 2018 |
|
| 2017 |
|
Revenues:
| | | | | | |
|
Sales
| | |
$
|
412,879
| | | |
$
|
241,056
| |
|
Other revenues
| | |
8,909
|
| | |
12,908
|
|
Total revenues
| | |
421,788
|
| | |
253,964
|
|
|
Costs and expenses:
| | | | | | |
|
Cost of sales (exclusive of items shown separately below)
| | |
190,676
| | | |
106,144
| |
|
Cost of other revenues (exclusive of items shown separately below)
| | |
7,784
| | | |
8,179
| |
|
Depreciation and depletion
| | |
24,552
| | | |
14,582
| |
|
Selling, general and administrative
| | |
8,234
| | | |
5,170
| |
|
Transaction and other expenses
| | |
3,288
|
| | |
9,036
|
|
|
Total costs and expenses
| | |
234,534
|
| | |
143,111
|
|
|
Operating income
| | |
187,254
| | | |
110,853
| |
|
Interest expense, net
| | |
(8,560
|
)
| | |
(608
|
)
|
|
Income before income tax expense
| | |
178,694
| | | |
110,245
| |
|
Income tax expense
| | |
—
|
| | |
1,937
|
|
|
Net income
| | |
$
|
178,694
|
| | |
$
|
108,308
|
|
|
Basic and diluted net income per share (1):
| | | | | | |
|
Net income per share—basic and diluted
| | |
$
|
3.36
|
| | |
$
|
2.06
|
|
|
Weighted average number of shares outstanding—basic
| | |
53,149
|
| | |
52,681
|
|
|
Weighted average number of shares outstanding—diluted
| | |
53,152
|
| | |
52,681
|
|
|
Dividends per share:
| | |
$
|
0.05
|
| | |
$
|
3.56
|
|
| | | | | | | | | | |
(1) On April 12, 2017, in connection with the Company’s
initial public offering, 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 |
| UNAUDITED |
| | |
|
QUARTERLY SUPPLEMENTAL FINANCIAL DATA: | | | |
| | |
|
| | | For the three months ended
March 31, |
|
(short tons in thousands)(1) | | | 2018 |
|
| 2017 |
|
Tons sold
| | |
2,116
| | | |
1,127
| |
|
Tons produced
| | |
2,098
| | | |
1,614
| |
|
Gross price realization (2) | | |
99
|
%
| | |
84
|
%
|
|
Average net selling price
| | |
$
|
195.12
| | | |
$
|
213.89
| |
|
Cash cost of sales (free on board port) per short ton (3) | | |
$
|
89.82
| | | |
$
|
93.75
| |
| | | | | | | | | |
|
(1) 1 short ton is equivalent to 0.907185 metric tons.
|
(2) For the three months ended March 31, 2018, our
gross price realization represents a volume weighted-average
calculation of our daily realized price per ton based on gross
sales, which excludes demurrage and other charges, as a percentage
of the Platts Index price. For the three months ended March 31,
2017, gross price realization represents gross sales dividend by
tons sold as a percentage of the Australian HCC Benchmark.
|
| | | | | | | | | |
|
RECONCILIATION OF CASH COST OF SALES (FREE-ON-BOARD PORT) TO
COST OF SALES REPORTED UNDER U.S. GAAP: |
| | | | | | | | | |
|
|
(in thousands)
| | | For the three months ended
March 31, |
| | | 2018 | | | 2017 |
|
Cost of sales
| | |
$
|
190,676
| | | |
$
|
106,144
| |
|
Asset retirement obligation accretion
| | |
(560
|
)
| | |
(481
|
)
|
|
Stock compensation expense
| | |
(67
|
)
| | |
—
|
|
|
Cash cost of sales (free on board port)(3) | | |
$
|
190,049
|
| | |
$
|
105,663
|
|
| | | | | | | | | |
|
(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. 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) |
| UNAUDITED |
| | |
|
RECONCILIATION OF ADJUSTED EBITDA TO AMOUNTS REPORTED UNDER
U.S. GAAP: | | | |
| | |
|
| | | For the three months ended
March 31, |
|
(in thousands)
| | | 2018 |
|
| 2017 |
|
Net income
| | |
$
|
178,694
| | | |
$
|
108,308
|
|
Interest expense, net
| | |
8,560
| | | |
608
|
|
Income tax expense
| | |
—
| | | |
1,937
|
|
Depreciation and depletion
| | |
24,552
| | | |
14,582
|
|
Asset retirement obligation accretion
| | |
1,155
| | | |
995
|
|
Stock compensation expense
| | |
198
| | | |
—
|
|
Transaction and other expenses
| | |
3,288
|
| | |
9,036
|
|
Adjusted EBITDA (4) | | |
$
|
216,447
|
| | |
$
|
135,466
|
| | | | | | | | |
|
(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 and transaction and other
expenses. 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: | | | | | | | | | |
| | | | | | | | |
|
|
(in thousands, except per share amounts)
| | | For the three months ended
March 31, |
| | | 2018 | | | 2017 |
|
Net income
| | |
$
|
178,694
| | | |
$
|
108,308
|
|
Transaction and other expenses, net of tax
| | |
3,288
|
| | |
8,882
|
|
Adjusted net income (5) | | |
$
|
181,982
|
| | |
$
|
117,190
|
| | | | | |
|
|
Weighted average number of basic shares outstanding
| | |
53,149
| | | |
52,681
|
|
Weighted average number of diluted shares outstanding
| | |
53,152
| | | |
52,681
|
| | | | | |
|
|
Adjusted basic and diluted income per share:
| | |
$
|
3.42
| | | |
$
|
2.22
|
| | | | | | | | |
|
(5) Adjusted net income is defined as net income net of
transaction and other expenses, net of tax (based on each
respective period's effective tax rate). Adjusted net income is
not a measure of financial performance in accordance with GAAP,
and we believe items excluded from adjusted net income are
significant to the reader in understanding and assessing our
results of operations. Therefore, adjusted net income should not
be considered in isolation, nor as an alternative to net income
under GAAP. We believe adjusted net income 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 may not be
comparable to similarly titled measures used by other companies.
|
|
|
|
|
| |
| WARRIOR MET COAL, INC. |
| CONDENSED STATEMENTS OF CASH FLOWS |
| ($ in thousands) |
| UNAUDITED |
| | |
|
| | | For the three months ended
March 31, |
| | | 2018 |
|
| 2017 |
|
OPERATING ACTIVITIES:
| | | | | | |
|
Net income
| | |
$
|
178,694
| | | |
$
|
108,308
| |
|
Non-cash adjustments to reconcile net income to net cash provided by
(used in) operating activities
| | |
26,543
| | | |
16,039
| |
|
Changes in operating assets and liabilities:
| | | | | | |
|
Trade accounts receivable
| | |
(34,579
|
)
| | |
(30,284
|
)
|
|
Other receivables
| | |
1,540
| | | |
(242
|
)
|
|
Inventories
| | |
1,784
| | | |
(28,592
|
)
|
|
Prepaid expenses and other current assets
| | |
10,353
| | | |
(2,167
|
)
|
|
Accounts payable
| | |
2,931
| | | |
10,237
| |
|
Accrued expenses and other current liabilities
| | |
8,948
| | | |
(7,055
|
)
|
|
Other
| | |
(2,476
|
)
| | |
(691
|
)
|
|
Net cash provided by operating activities
| | |
193,738
|
| | |
65,553
|
|
|
INVESTING ACTIVITIES:
| | |
| | |
|
|
Net cash used in investing activities
| | |
(22,542
|
)
| | |
(11,378
|
)
|
|
FINANCING ACTIVITIES:
| | |
| | |
|
|
Net cash provided by (used in) financing activities
| | |
115,392
|
| | |
(190,765
|
)
|
|
Net increase (decrease) in cash and cash equivalents and restricted
cash
| | |
286,588
| | | |
(136,590
|
)
|
|
Cash and cash equivalents and restricted cash at beginning of period
| | |
36,264
|
| | |
152,656
|
|
|
Cash and cash equivalents and restricted cash at end of period
| | |
$
|
322,852
|
| | |
$
|
16,066
|
|
| | | | | | | | | |
|
RECONCILIATION OF FREE CASH FLOW TO AMOUNTS REPORTED UNDER U.S.
GAAP: | | | | | | | | | | |
| | | | | | | | | |
|
|
(in thousands)
| | | For the three months ended
March 31, |
| | | 2018 | | | 2017 |
|
Net cash provided by operating activities
| | |
$
|
193,738
| | | |
$
|
65,553
| |
|
Purchases of property, plant and equipment
| | |
(22,542
|
)
| | |
(11,378
|
)
|
|
Free cash flow (6) | | |
$
|
171,196
|
| | |
$
|
54,175
|
|
| | | | | | | | | |
|
(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 excluded
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) |
| UNAUDITED |
| | | | | |
|
| | | March 31,
2018 | | | December 31,
2017 |
| ASSETS | | | | | | |
|
Current assets:
| | | | | | |
|
Cash and cash equivalents
| | |
$
|
322,024
| | | |
$
|
35,470
|
|
Short-term investments
| | |
17,501
| | | |
17,501
|
|
Trade accounts receivable
| | |
152,325
| | | |
117,746
|
|
Other receivables
| | |
12,942
| | | |
14,482
|
|
Inventories, net
| | |
51,282
| | | |
54,294
|
|
Prepaid expenses
| | |
19,023
|
| | |
29,376
|
|
Total current assets
| | |
575,097
| | | |
268,869
|
|
Mineral interests, net
| | |
127,254
| | | |
130,004
|
|
Property, plant and equipment, net
| | |
540,151
| | | |
536,745
|
|
Income tax receivable
| | |
39,255
| | | |
39,255
|
|
Other long-term assets
| | |
19,853
|
| | |
18,442
|
|
Total assets
| | |
$
|
1,301,610
|
| | |
$
|
993,315
|
| LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | |
|
Current liabilities:
| | | | | | |
|
Accounts payable
| | |
$
|
30,996
| | | |
$
|
28,076
|
|
Accrued expenses
| | |
69,332
| | | |
66,704
|
|
Other current liabilities
| | |
16,712
| | | |
10,475
|
|
Current portion of long-term debt
| | |
2,995
|
| | |
2,965
|
|
Total current liabilities
| | |
120,035
| | | |
108,220
|
|
Long-term debt
| | |
465,545
| | | |
342,948
|
|
Asset retirement obligations
| | |
97,127
| | | |
96,096
|
|
Other long-term liabilities
| | |
33,993
|
| | |
33,028
|
|
Total liabilities
| | |
716,700
| | | |
580,292
|
|
Stockholders’ Equity:
| | | | | | |
|
Common stock, $0.01 par value per share (Authorized -140,000,000
shares, issued and outstanding - 53,446,284 and 53,442,532,
respectively)
| | |
534
| | | |
534
|
|
Preferred stock, $0.01 par value per share (10,000,000 shares
authorized, no shares issued and outstanding)
| | |
—
| | | |
—
|
|
Additional paid in capital
| | |
325,871
| | | |
329,993
|
|
Retained earnings
| | |
258,505
|
| | |
82,496
|
|
Total stockholders’ equity
| | |
584,910
|
| | |
413,023
|
|
Total liabilities and stockholders’ equity
| | |
$
|
1,301,610
|
| | |
$
|
993,315
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20180502006650/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.