Upgraded by Moody's
Amends and Restates Credit Agreement
BROOKWOOD, Ala.--(BUSINESS WIRE)--
Warrior Met Coal, Inc. (NYSE:HCC) (“Warrior” or the “Company”) today
announced results for the third quarter ended September 30, 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 third quarter 2018 net income of $52.6 million, or
$1.00 per diluted share, compared to third quarter 2017 net income
of $119.7 million, or $2.27 per diluted share, which included a $37.6
million, or $0.71 per diluted share, income tax benefit reflecting the
impact of the favorable Internal Revenue Service Private Letter Ruling
the Company received in the third quarter of 2017. Excluding one-time
transaction and other expenses, adjusted earnings per share for this
quarter were $1.06 per diluted share. The Company reported Adjusted
EBITDA of $94.1 million for the third quarter 2018 compared to Adjusted
EBITDA of $107.3 million in the third quarter of 2017.
Year-to-date, Warrior reported net income of $322.6 million, or $6.09
per diluted share, compared to net income of $357.9 million, or $6.79
per diluted share, in the same period of 2017. Excluding one-time
transaction and other expenses, adjusted earnings per share year-to-date
were $6.30 per diluted share compared to the same period in 2017 of
$7.03 per diluted share. Year-to-date Adjusted EBITDA was $439.4 million
compared to $431.4 million in the same period of 2017.
“The market for high quality premium met coal remained strong in the
third quarter, with robust customer demand continuing to be supported by
steel production in our key markets,” commented Walt Scheller, CEO of
Warrior. “Warrior is performing in line with our increased guidance for
the year as we continue to benefit from a price environment supported by
a tight supply/demand balance and favorable Chinese policies. With the
recent successful completion of two scheduled longwall moves, our
success in maintaining high levels of production during this time was
the result of good planning, preparation, communication, and outstanding
work by our employees.”
Operating Results
The Company produced 1.8 million short tons of met coal in the third
quarter of 2018, compared to 1.6 million short tons produced in the
third quarter of 2017. Production levels were reduced somewhat as a
result of two longwall moves, both of which were completed slightly
better than expected and on schedule. The Company continues to make good
progress toward its nameplate annual capacity of eight million short
tons. In the first nine months of the year, the Company produced 5.8
million short tons of met coal.
Total revenues were $273.3 million for the third quarter of 2018,
including $264.9 million in mining revenues, which consisted of met coal
sales of 1.7 million short tons at an average net selling price of $159
per short ton, net of demurrage and other charges. Average net selling
price rose 10.2% compared to the third quarter of 2017, reflecting the
strength of the prevailing market conditions. Warrior capitalized on the
strong pricing environment in the quarter by achieving a gross price
realization of 97% which was lower compared to prior periods primarily
due to a rising price environment. Beginning in the first quarter of
2018, the Company’s gross price realization has been calculated as a
volume weighted-average of its 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 third quarter of 2018 were $167.2 million, or
63.1% of mining revenues, and included mining costs, transportation and
royalty costs. Mining costs were lower in the third quarter of 2018 than
the same period last year primarily due to a decrease in met coal sales
of 0.4 million short tons and the Port of Mobile, Alabama being closed
for approximately three days due to Tropical Storm Gordon.
Selling, general and administrative expenses for the third quarter of
2018 were $7.4 million, or 2.7% of total revenues, which were $1.9
million less than the same period last year. Transaction and other
expenses were $3.3 million in the third quarter of 2018 and were related
to the completion of a secondary offering of common stock by certain
existing stockholders. Depreciation and depletion costs for the third
quarter of 2018 were $26.1 million, or 9.5% of total revenues. Warrior
incurred interest expense of $10.1 million during the third quarter of
2018. The Company did not incur any income tax expense for the third
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 third quarter of 2018 of $102.3 million, compared to
$116.1 million in the third quarter of 2017. Net working capital,
excluding cash, decreased by $21.2 million from the second quarter of
2018, primarily due to higher accrued expenses associated with interest
on its $475.0 million in aggregate principal amount of 8.00% Senior
Secured Notes due 2024 (the “Notes”) and lower accounts receivable on
lower sales volumes. Capital expenditures for the third quarter of 2018
were $24.2 million, resulting in free cash flow of $78.2 million.
The Company’s available liquidity as of September 30, 2018 was $225.6
million, consisting of cash and cash equivalents of $130.2 million and
$95.4 million of available borrowings under its Asset-Based Revolving
Credit Agreement, net of outstanding letters of credit of $4.6 million.
Company Outlook
In light of the Company's successful performance in the first three
quarters of 2018, its NOL carryforwards, and the expected market
conditions for the remainder of 2018, Warrior is maintaining its
guidance for the full year 2018 as outlined below.
|
|
|
| |
|
Coal sales
| | | |
7.1 - 7.5 million short tons
|
|
Coal production
| | | |
7.1 - 7.5 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
| | | | $36 - $39 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.
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."
Key factors that may affect outlook include:
-
HCC index pricing
-
Planned longwall moves - 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.
Amended and Restated Credit Agreement
On October 16, 2018, the Company announced that it had amended and
restated the Asset-Based Revolving Credit Agreement, (the “Amended and
Restated Credit Agreement”). The Amended and Restated Credit Agreement,
among other things, (i) increases the aggregate commitments available to
be borrowed under the credit facility by $25.0 million to $125.0
million; (ii) extends the maturity date of the credit facility to
October 15, 2023; (iii) decreases the applicable interest rate margins
with respect to the loans and the applicable fees in connection with the
issuance of letters of credit; and (iv) amends certain covenants and
other terms and provisions.
Moody’s Upgrade
On September 20, 2018, the Company announced that Moody’s Investors
Service (“Moody’s”) has upgraded its Corporate Family Rating (“CFR”) to
B2 from B3 with a Stable Outlook. According to Moody’s, the upgrade
reflects the Company’s strong financial performance, including free cash
flow generation, strong met coal prices, low financial leverage and
changes in the Company’s stockholder base. The upgrade further reflects
expectations that the Company will continue to demonstrate strong free
cash flow through 2019.
Regular Quarterly Dividend
On October 23, 2018, the board of directors of the Company declared a
regular quarterly cash dividend of $0.05 per share, totaling
approximately $2.7 million, which will be paid on November 9, 2018 to
stockholders of record as of the close of business on November 2, 2018.
Secondary Offering
On August 9, 2018, the Company announced the completion of an
underwritten secondary offering of 2,204,806 shares of its common stock
by certain of its existing stockholders. The Company did not receive any
proceeds from the sale of shares in the offering.
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 third quarter
2018 results today, October 31, 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 October 31,
2018 through 6:30 p.m. ET on November 9, 2018. The replay will be
available by calling: 1-877-344-7529 (domestic) or 1-412-317-0088
(international) and entering passcode 10122679.
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. Warrior sells all 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 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, including
statements regarding sales and production growth, ability to maintain
cost structure, demand, the future direction of prices, expected capital
expenditures and future effective income tax rates.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 the timing and amount of any stock
repurchases the Company makes under its stock repurchase program; the
Company’s ability to comply with covenants in its credit facility or
indenture relating to the Notes; 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 September
30, 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 September 30, | | For the nine months ended September 30, |
| | 2018 |
| 2017 | | 2018 |
| 2017 |
|
Revenues:
| | | | | | | | |
|
Sales
| |
$
|
264,908
| | |
$
|
302,958
| | |
$
|
992,832
| | |
$
|
895,802
| |
|
Other revenues
| |
8,396
|
| |
8,997
|
| |
24,815
|
| |
33,487
|
|
|
Total revenues
| |
273,304
|
| |
311,955
|
| |
1,017,647
|
| |
929,289
|
|
|
Costs and expenses:
| | | | | | | | |
|
Cost of sales (exclusive of items shown separately below)
| |
167,188
| | |
189,564
| | |
536,407
| | |
455,860
| |
|
Cost of other revenues (exclusive of items shown separately below)
| |
6,704
| | |
6,985
| | |
21,826
| | |
22,959
| |
|
Depreciation and depletion
| |
26,071
| | |
23,393
| | |
71,750
| | |
57,625
| |
|
Selling, general and administrative
| |
7,357
| | |
9,243
| | |
29,056
| | |
23,073
| |
|
Transaction and other expenses
| |
3,265
|
| |
—
|
| |
7,539
|
| |
12,873
|
|
|
Total costs and expenses
| |
210,585
|
| |
229,185
|
| |
666,578
|
| |
572,390
|
|
|
Operating income
| |
62,719
| | |
82,770
| | |
351,069
| | |
356,899
| |
|
Interest expense, net
| |
(10,128
|
)
| |
(640
|
)
| |
(28,472
|
)
| |
(1,890
|
)
|
|
Income before income tax benefit
| |
52,591
| | |
82,130
| | |
322,597
| | |
355,009
| |
|
Income tax benefit
| |
—
|
| |
(37,587
|
)
| |
—
|
| |
(2,881
|
)
|
|
Net income
| |
$
|
52,591
|
| |
$
|
119,717
|
| |
$
|
322,597
|
| |
$
|
357,890
|
|
|
Basic and diluted net income per share (1):
| | | | | | | | |
|
Net income per share—basic
| |
$
|
1.00
|
| |
$
|
2.27
|
| |
$
|
6.10
|
| |
$
|
6.79
|
|
|
Net income per share—diluted
| |
$
|
1.00
|
| |
$
|
2.27
|
| |
$
|
6.09
|
| |
$
|
6.79
|
|
|
Weighted average number of shares outstanding—basic
| |
52,707
|
| |
52,777
|
| |
52,916
|
| |
52,727
|
|
|
Weighted average number of shares outstanding—diluted
| |
52,708
|
| |
52,777
|
| |
52,945
|
| |
52,727
|
|
|
Dividends per share:
| |
$
|
0.05
|
| |
$
|
0.05
|
| |
$
|
6.68
|
| |
$
|
3.66
|
|
| | | | | | | | | | | | | | | |
|
| (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.
|
|
|
|
| |
| |
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 September 30, | | For the nine months ended September 30, |
|
(short tons in thousands)(1) | | 2018 |
| 2017 | | 2018 |
| 2017 |
|
Tons sold
| |
1,668
| | |
2,103
| | |
5,669
| | |
5,172
| |
|
Tons produced
| |
1,819
| | |
1,620
| | |
5,846
| | |
5,142
| |
|
Gross price realization (2) | |
97
|
%
| |
85
|
%
| |
98
|
%
| |
108
|
%
|
|
Average net selling price
| |
$
|
158.82
| | |
$
|
144.06
| | |
$
|
175.13
| | |
$
|
173.20
| |
|
Cash cost of sales (free on board port) per short ton (3) | |
$
|
99.78
| | |
$
|
89.91
| | |
$
|
94.15
| | |
$
|
87.86
| |
| | | | | | | | | | | | | | | |
|
| (1) |
1 short ton is equivalent to 0.907185 metric tons.
|
| (2) |
For the three and nine months ended September 30, 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. For the three and nine months ended September 30, 2017, gross
price realization represents gross sales, excluding demurrage and
other charges, divided by tons sold as a percentage of the
Australian LV Index.
|
|
|
|
| |
| |
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 September 30, | | For the nine months ended September 30, |
| | 2018 |
| 2017 | | 2018 |
| 2017 |
|
Cost of sales
| |
$
|
167,188
| | |
$
|
189,564
| | |
$
|
536,407
| | |
$
|
455,860
| |
|
Asset retirement obligation accretion
| |
(560
|
)
| |
(441
|
)
| |
(1,680
|
)
| |
(1,324
|
)
|
|
Stock compensation expense
| |
(218
|
)
| |
(39
|
)
| |
(1,011
|
)
| |
(114
|
)
|
|
Cash cost of sales (free on board port)(3) | |
$
|
166,410
|
| |
$
|
189,084
|
| |
$
|
533,716
|
| |
$
|
454,422
|
|
| | | | | | | | | | | | | | | |
|
| (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 September 30, | | For the nine months ended September 30, |
|
(in thousands)
| | 2018 |
| 2017 | | 2018 |
| 2017 |
|
Net income
| |
$
|
52,591
| | |
$
|
119,717
| | |
$
|
322,597
| |
|
$
|
357,890
| |
|
Interest expense, net
| |
10,128
| | |
640
| | |
28,472
| | |
1,890
| |
|
Income tax benefit
| |
—
| | |
(37,587
|
)
| |
—
| | |
(2,881
|
)
|
|
Depreciation and depletion
| |
26,071
| | |
23,393
| | |
71,750
| | |
57,625
| |
|
Asset retirement obligation accretion
| |
1,155
| | |
940
| | |
3,465
| | |
2,839
| |
|
Stock compensation expense
| |
919
| | |
233
| | |
5,598
| | |
1,155
| |
|
Transaction and other expenses
| |
3,265
|
| |
—
|
| |
7,539
|
|
|
12,873
|
|
|
Adjusted EBITDA (4) | |
$
|
94,129
|
| |
$
|
107,336
|
| |
$
|
439,421
|
|
|
$
|
431,391
|
|
| | | | | | | | | | | | | | | |
|
| (4) |
Adjusted EBITDA is defined as net income 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 September 30, | | For the nine months ended September 30, |
| | 2018 |
| 2017 | | 2018 |
| 2017 |
|
Net income
| |
$
|
52,591
| | |
$
|
119,717
| | |
$
|
322,597
| |
|
$
|
357,890
|
|
Incremental stock compensation expense
| |
—
| | |
—
| | |
3,570
| | |
—
|
|
Transaction and other expenses, net of tax
| |
3,265
|
| |
—
|
| |
7,539
|
| |
12,873
|
|
Adjusted net income (5) | |
$
|
55,856
|
| |
$
|
119,717
|
| |
$
|
333,706
|
| |
$
|
370,763
|
| | | | | | | |
|
|
Weighted average number of basic shares outstanding
| |
52,707
| | |
52,777
| | |
52,916
| | |
52,727
|
|
Weighted average number of diluted shares outstanding
| |
52,708
| | |
52,777
| | |
52,945
| | |
52,727
|
| | | | | | | |
|
|
Adjusted basic income per share:
| |
$
|
1.06
| | |
$
|
2.27
| | |
$
|
6.31
| | |
$
|
7.03
|
|
Adjusted diluted income per share:
| |
$
|
1.06
| | |
$
|
2.27
| | |
$
|
6.30
| | |
$
|
7.03
|
| | | | | | | | | | | | | | |
|
| (5) |
Adjusted net income is defined as net income net of incremental
non-cash stock compensation expense, 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 September 30, | | For the nine months ended September 30, |
| | 2018 |
| 2017 | | 2018 |
| 2017 |
|
OPERATING ACTIVITIES:
| | | | | | |
| |
|
Net income
| |
$
|
52,591
| | |
$
|
119,717
| | |
$
|
322,597
| | |
$
|
357,890
| |
|
Non-cash adjustments to reconcile net income to net cash provided by
operating activities
| |
28,806
| | |
19,620
| | |
82,870
| | |
57,562
| |
|
Changes in operating assets and liabilities:
| | | | | | | | |
|
Trade accounts receivable
| |
16,196
| | |
(35,990
|
)
| |
3,996
| | |
(62,645
|
)
|
|
Other receivables
| |
(1,080
|
)
| |
(15,181
|
)
| |
3,128
| | |
(13,981
|
)
|
|
Inventories
| |
(5,677
|
)
| |
37,003
| | |
(11,067
|
)
| |
4,072
| |
|
Prepaid expenses and other current assets
| |
(7,270
|
)
| |
(2,274
|
)
| |
1,356
| | |
(6,948
|
)
|
|
Accounts payable
| |
(3,843
|
)
| |
2,772
| | |
11,626
| | |
10,550
| |
|
Accrued expenses and other current liabilities
| |
22,908
| | |
(9,015
|
)
| |
19,185
| | |
1,002
| |
|
Other
| |
(289
|
)
| |
(543
|
)
| |
(5,092
|
)
| |
(4,436
|
)
|
|
Net cash provided by operating activities
| |
102,342
|
| |
116,109
|
| |
428,599
|
| |
343,066
|
|
|
INVESTING ACTIVITIES:
| |
| |
| |
| |
|
|
Net cash used in investing activities
| |
(23,805
|
)
| |
(34,408
|
)
| |
(79,224
|
)
| |
(62,671
|
)
|
|
FINANCING ACTIVITIES:
| |
| |
| |
| |
|
|
Net cash used in financing activities
| |
(3,468
|
)
| |
(3,440
|
)
| |
(254,657
|
)
| |
(197,644
|
)
|
|
Net increase in cash and cash equivalents and restricted cash
| |
75,069
| | |
78,261
| | |
94,718
| | |
82,751
| |
|
Cash and cash equivalents and restricted cash at beginning of period
| |
55,913
|
| |
157,146
|
| |
36,264
|
| |
152,656
|
|
|
Cash and cash equivalents and restricted cash at end of period
| |
$
|
130,982
|
| |
$
|
235,407
|
| |
$
|
130,982
|
| |
$
|
235,407
|
|
| | | | | | | | | | | | | | | |
|
|
| |
| |
RECONCILIATION OF FREE CASH FLOW TO AMOUNTS REPORTED UNDER U.S.
GAAP: |
| | | |
|
|
(in thousands)
| | For the three months ended September 30, | | For the nine months ended September 30, |
| | 2018 |
| 2017 | | 2018 |
| 2017 |
|
Net cash provided by operating activities
| |
$
|
102,342
| | |
$
|
116,109
| | |
$
|
428,599
| | |
$
|
343,066
| |
|
Purchases of property, plant and equipment
| |
(24,160
|
)
| |
(34,408
|
)
| |
(79,579
|
)
| |
(62,671
|
)
|
|
Free cash flow (6) | |
$
|
78,182
|
| |
$
|
81,701
|
| |
$
|
349,020
|
| |
$
|
280,395
|
|
| | | | | | | | | | | | | | | |
|
| (6) |
Free cash flow is defined as net cash provided by 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
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 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 |
| | | |
|
| | September 30, 2018 | | December 31, 2017 |
| ASSETS | | | | |
|
Current assets:
| | | | |
|
Cash and cash equivalents
| |
$
|
130,155
| | |
$
|
35,470
|
|
Short-term investments
| |
17,501
| | |
17,501
|
|
Trade accounts receivable
| |
113,750
| | |
117,746
|
|
Other receivables
| |
11,354
| | |
14,482
|
|
Inventories, net
| |
66,771
| | |
54,294
|
|
Prepaid expenses
| |
28,020
|
| |
29,376
|
|
Total current assets
| |
367,551
| | |
268,869
|
|
Mineral interests, net
| |
122,878
| | |
130,004
|
|
Property, plant and equipment, net
| |
549,593
| | |
536,745
|
|
Income tax receivable
| |
39,255
| | |
39,255
|
|
Other long-term assets
| |
20,841
|
| |
18,442
|
|
Total assets
| |
$
|
1,100,118
|
| |
$
|
993,315
|
| LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | |
|
Current liabilities:
| | | | |
|
Accounts payable
| |
$
|
37,077
| | |
$
|
28,076
|
|
Accrued expenses
| |
87,123
| | |
66,704
|
|
Other current liabilities
| |
9,039
| | |
10,475
|
|
Current portion of long-term debt
| |
1,512
|
| |
2,965
|
|
Total current liabilities
| |
134,751
| | |
108,220
|
|
Long-term debt
| |
466,079
| | |
342,948
|
|
Asset retirement obligations
| |
99,428
| | |
96,096
|
|
Other long-term liabilities
| |
34,166
|
| |
33,028
|
|
Total liabilities
| |
734,424
| | |
580,292
|
|
Stockholders’ Equity:
| | | | |
|
Common stock, $0.01 par value per share (Authorized -140,000,000
shares, 53,256,440 issued and 52,756,440 outstanding as of September
30, 2018 and 53,284,470 issued and outstanding as of December 31,
2017)
| |
534
| | |
534
|
|
Preferred stock, $0.01 par value per share (10,000,000 shares
authorized, no shares issued and outstanding)
| |
—
| | |
—
|
|
Treasury stock, at cost (500,000 shares)
| |
(12,100
|
)
| |
—
|
|
Additional paid in capital
| |
239,027
| | |
329,993
|
|
Retained earnings
| |
138,233
|
| |
82,496
|
|
Total stockholders’ equity
| |
365,694
|
| |
413,023
|
|
Total liabilities and stockholders’ equity
| |
$
|
1,100,118
|
| |
$
|
993,315
|
| | | | | | |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20181031005678/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.