Achieves largest Net Income and Adjusted EBITDA
in over two years
Warrior Met Coal, Inc. (NYSE:HCC) (“Warrior” or the “Company”)
today announced results for the third quarter of 2021. Warrior is
the leading dedicated U.S. based producer and exporter of high
quality metallurgical (“met”) coal for the global steel
industry.
Warrior reported net income for the third quarter of 2021 of
$38.4 million, or $0.74 per diluted share, compared to a net loss
of $14.4 million, or $0.28 per diluted share, in the third quarter
of 2020. Adjusted net income per share for the third quarter of
2021 was $0.97 per diluted share compared to adjusted net loss per
share of $0.28 per diluted share in the third quarter of 2020. The
Company reported Adjusted EBITDA of $104.9 million in the third
quarter of 2021, compared to Adjusted EBITDA of $16.8 million in
the third quarter of 2020.
“During the third quarter, we were pleased to deliver our most
profitable results since the onset of the COVID-19 pandemic, driven
by the resiliency and efficiency of our operational base,”
commented Walt Scheller, CEO of Warrior. “We were ideally set to
take advantage of the record high pricing we saw this quarter,
enabling us to leverage the strong global economic recovery by
increasing our average net selling prices and delivering strong
production during the ongoing union strike. Despite the continued
issues with supply chains around the world, we are finding that
strong steel and met coal demand globally, as well as the Chinese
ban on Australian coal imports, are providing tailwinds that play
to our strengths. With a continued focus on managing expenses,
enhancing liquidity, and increasing cash flows, Warrior is well
positioned to continue meeting our customers’ long-term commitments
in the face of any potential future market volatility.”
Mr. Scheller continued, "While we continue to negotiate in good
faith to reach a new union contract, the UMWA unfortunately remains
on strike. During this period, we continued to execute successfully
on our business continuity plans, allowing us to continue to meet
the needs of our valued customers. Despite incurring costs
associated with the strike, we have been able to manage our working
capital and spending to deliver strong results in this market.”
Operating Results
The Company produced 1.1 million short tons of met coal in the
third quarter of 2021 compared to 1.9 million short tons in the
third quarter of 2020. The tons produced in the third quarter of
2021 resulted from running both longwalls and four continuous miner
units at Mine No. 7. By running the four continuous miner units,
our lead days or float time has not materially changed since the
strike commenced in April and are still several months out into the
future. Mine No. 4 remained idled during the third quarter of 2021.
Sales volume in the third quarter of 2021 was 1.1 million short
tons compared to 1.9 million short tons in the third quarter of
2020. Inventory levels rose slightly to 590 thousand short tons at
the end of September 30, 2021 from the 503 thousand short tons at
the end of June 30, 2021.
Additional Financial Results
Total revenues were $202.5 million for the third quarter of
2021, including $199.7 million in mining revenues, which consisted
of met coal sales of 1.1 million short tons at an average net
selling price of $188.62 per short ton, net of demurrage and other
charges. This compares to total revenues of $180.1 million in the
third quarter of 2020. The average net selling price of the
Company's met coal increased 108% from $90.65 per short ton in the
third quarter of 2020 to $188.62 per short ton in the third quarter
of 2021. During the third quarter of 2021, the Company's gross
price realization was 81% of the quarterly Australian premium
low-volatility hard coking coal (“HCC”) Platts Premium LV FOB
Australian Index (the "Platts Index”) price, reflecting a rapidly
rising price environment during the third quarter. The
year-over-year increase in revenues is primarily attributed to
improved met coal pricing, partially offset by lower sales
volume.
Cost of sales for the third quarter of 2021 were $92.0 million
compared to $151.4 million for the third quarter of 2020. Cash cost
of sales (including mining, transportation and royalty costs) for
the third quarter of 2021 were $91.0 million, or 45.6% of mining
revenues, compared to $150.6 million, or 86.0% of mining revenues
in the same period of 2020. Cash cost of sales (free-on-board port)
per short ton increased to $85.92 in the third quarter of 2021 from
$77.92 in the third quarter of 2020, reflecting higher met coal
sales prices and its effect on Warrior's variable costs
structure.
Selling, general and administrative expenses for the third
quarter of 2021 were $7.4 million, or 3.7% of total revenues and
were lower than the same period last year driven by lower employee
related costs and professional service fees. Depreciation and
depletion expenses for the third quarter of 2021 were $29.0
million, slightly higher than the prior year comparable quarter.
Warrior incurred net interest expense of $8.8 million during the
third quarter of 2021, which was higher than the same quarter last
year primarily due to interest on new equipment financing
leases.
Business interruption expenses were $6.9 million and represent
non-recurring expenses that are directly attributable to the
ongoing UMWA strike for incremental safety and security, labor
negotiations and other expenses. Idle mine expenses were $9.3
million and represent expenses incurred with the idling of Mine 4
and reduced operations at Mine 7, such as electricity, insurance
and maintenance labor.
Income tax expense was $5.4 million in the third quarter of 2021
due to income before income taxes of $43.9 million offset partially
by an income tax benefit for depletion and additional marginal gas
well credits. This compares to an income tax benefit of $8.2
million in the third quarter of 2020.
Cash Flow and Liquidity
The Company generated cash flows from operating activities in
the third quarter of 2021 of $62.9 million, compared to $29.2
million in the third quarter of 2020. Capital expenditures for the
third quarter of 2021 were $10.5 million. Free cash flow was $52.4
million in the third quarter of 2021, which was $51.1 million
better than the third quarter of 2020, and reflected higher
realized prices and our conscious management of expenses and
spending.
Net working capital, excluding cash, for the third quarter of
2021 increased by $17.9 million from the second quarter of 2021,
primarily reflecting an increase in inventory due to lower met coal
sales volume.
Cash flows used in financing activities for the third quarter of
2021 were $50.9 million, primarily due to payments on the ABL
Facility of $40.0 million, principal repayments of capital lease
obligations of $8.3 million and the payment of dividends of $2.6
million.
The Company’s total liquidity as of September 30, 2021 was
$355.7 million, consisting of cash and cash equivalents of $268.4
million and available liquidity under its ABL Facility of $87.3
million, which is net of outstanding letters of credit of $9.4
million.
Capital Allocation
On October 25, 2021, the board of directors declared a regular
quarterly cash dividend of $0.05 per share, totaling approximately
$2.6 million, which will be paid on November 12, 2021 to
stockholders of record as of the close of business on November 5,
2021.
Collective Bargaining Agreement
The Company's Collective Bargaining Agreement ("CBA") contract
with the United Mine Workers of America ("UMWA") expired on April
1, 2021, and the UMWA initiated a strike. The Company believes that
it is well positioned to fulfill anticipated customer volume
commitments for 2021 of approximately 4.9 to 5.5 million short tons
through a combination of existing coal inventory of 590 thousand
short tons and expected production for the remainder of the year.
Even though Mine 4 remains idled, the Company expects production to
continue at Mine 7, although at lower than usual rates. While the
Company has business continuity plans in place, the strike may
still cause disruption to production and shipment activities, and
the plans may vary significantly from quarter to quarter for the
remainder of the year.
In the current operating environment and without a new contract,
we believe that our production and sales volume over a twelve-month
period could be between 5.5 million and 6.5 million short tons,
which volumes could possibly include restarting Mine 4. Similarly,
with a new contract, we believe that our production and sales
volume over a twelve-month period could ramp up to a run rate of
approximately 7.5 million short tons within three to four
months.
Company Outlook
Due to ongoing uncertainty related to negotiations with the
UMWA, the Chinese ban on Australian coal and other potentially
disruptive factors, Warrior will not be providing full year 2021
guidance at this time. The Company expects to return to providing
guidance once there is further clarity on these issues.
Warrior continues to appropriately adjust its operational needs,
including managing expenses, capital expenditures, working capital,
liquidity and cash flows. The Company has delayed the development
of the Blue Creek project and its Stock Repurchase Program also
remains temporarily suspended, while it focuses on preserving cash
and liquidity.
Use of Non-GAAP Financial Measures
This release contains the use of certain 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 is provided in the financial tables
section of this release.
Conference Call
The Company will hold a conference call to discuss its third
quarter 2021 results today, November 2, 2021, 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 Met Coal
conference call. Telephone playback will also be available from
6:30 p.m. ET November 3, 2021 until 6:30 p.m. ET on November 9,
2021. The replay will be available by calling: 1-877-344-7529
(domestic) or 1-412-317-0088 (international) and entering passcode
10159683.
About Warrior
Warrior is a U.S.-based, environmentally and socially minded
supplier to the global steel industry. It is dedicated entirely to
mining non-thermal met coal used as a critical component of steel
production by metal manufacturers in Europe, South America and
Asia. Warrior is a large-scale, low-cost producer and exporter of
premium met coal, also known as hard-coking coal (HCC), operating
highly efficient longwall operations in its underground mines based
in Alabama. The HCC that Warrior produces from the Blue Creek coal
seam contains very low sulfur, 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. For more
information, 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 the
impact of COVID-19 on its business and that of its customers, sales
and production growth, ability to maintain cost structure, demand,
the future direction of prices, management of liquidity, cash
flows, expenses and expected capital expenditures and working
capital, future effective income tax rates and payment of cash
taxes, if any, as well as statements regarding production, our
ability to fulfill expected customer orders and the outcome of
negotiations with our labor union, including any potential changes
to our production and sales volumes as a result of such outcome.
The words “believe,” “expect,” “anticipate,” “plan,” “intend,”
“estimate,” “project,” “target,” “foresee,” “should,” “would,”
“could,” “potential,” “outlook,” “guidance” 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; the impact of COVID-19 on
its business and that of its customers, including the risk of a
decline in demand for the Company's met coal due to the impact of
COVID-19 on steel manufacturers, the inability of the Company to
effectively operate its mines and the resulting decrease in
production, the inability of the Company to ship its products to
customers in the case of a partial or complete shut-down of the
Port of Mobile; 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
and labor strikes or slowdowns; the timing and impact of planned
longwall moves; the Company’s obligations surrounding reclamation
and mine closure; inaccuracies in the Company’s estimates of its
met coal reserves; any projections or estimates regarding Blue
Creek, including the expected returns from this project, if any,
and the ability of Blue Creek to enhance the Company's portfolio of
assets, the Company's expectations regarding its future tax rate as
well as its ability to effectively utilize its NOLs to reduce or
eliminate its cash taxes; the Company's ability to develop Blue
Creek; 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; the Company’s
ability to comply with covenants in its ABL Facility or indenture
relating to its senior secured 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, 2020 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,
2021
2020
2021
2020
Revenues:
Sales
$
199,745
$
175,229
$
631,493
$
555,610
Other revenues
2,722
4,835
12,178
14,875
Total revenues
202,467
180,064
643,671
570,485
Costs and expenses:
Cost of sales (exclusive of items shown
separately below)
91,973
151,370
399,088
433,661
Cost of other revenues (exclusive of items
shown separately below)
6,654
7,064
22,792
22,267
Depreciation and depletion
28,967
27,965
102,021
78,813
Selling, general and administrative
7,430
8,192
26,182
25,105
Business interruption
6,872
—
13,892
—
Idle mine
9,327
—
20,203
—
Total costs and expenses
151,223
194,591
584,178
559,846
Operating income (loss)
51,244
(14,527
)
59,493
10,639
Interest expense, net
(8,784
)
(8,059
)
(25,954
)
(23,847
)
Other income
1,400
—
1,291
1,822
Income (loss) before income tax expense
(benefit)
43,860
(22,586
)
34,830
(11,386
)
Income tax expense (benefit)
5,433
(8,152
)
22,439
(9,336
)
Net income (loss)
$
38,427
$
(14,434
)
$
12,391
$
(2,050
)
Basic and diluted net income (loss) per
share:
Net income (loss) per share—basic
$
0.75
$
(0.28
)
$
0.24
$
(0.04
)
Net income (loss) per share—diluted
$
0.74
$
(0.28
)
$
0.24
$
(0.04
)
Weighted average number of shares
outstanding—basic
51,416
51,190
51,315
51,161
Weighted average number of shares
outstanding—diluted
51,585
51,190
51,424
51,161
Dividends per share:
$
0.05
$
0.05
$
0.15
$
0.15
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)
2021
2020
2021
2020
Tons sold
1,059
1,933
4,834
5,219
Tons produced
1,129
1,887
4,496
6,102
Gross price realization (2)
81
%
90
%
94
%
92
%
Average net selling price
$
188.62
$
90.65
$
130.64
$
106.46
Cash cost of sales (free-on-board port)
per short ton (3)
$
85.92
$
77.92
$
81.97
$
82.63
(1)
1 short ton is equivalent to 0.907185
metric tons.
(2)
For the three and nine months ended
September 30, 2021 and 2020, 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.
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,
2021
2020
2021
2020
Cost of sales
91,973
151,370
$
399,088
$
433,661
Asset retirement obligation accretion
(432
)
(368
)
(1,297
)
(1,106
)
Stock compensation expense
(555
)
(385
)
(1,536
)
(1,312
)
Cash cost of sales (free-on-board
port)(3)
$
90,986
$
150,617
$
396,255
$
431,243
(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)
2021
2020
2021
2020
Net income (loss)
$
38,427
$
(14,434
)
$
12,391
$
(2,050
)
Interest expense, net
8,784
8,059
25,954
23,847
Income tax expense (benefit)
5,433
(8,152
)
22,439
(9,336
)
Depreciation and depletion
28,967
27,965
102,021
78,813
Asset retirement obligation accretion
805
732
2,416
2,198
Stock compensation expense
1,524
1,910
8,763
5,634
Other non-cash accretion
360
353
1,081
1,059
Non-cash mark-to-market loss on gas
hedges
5,843
—
8,661
—
Business interruption
6,872
—
13,892
—
Idle mine
9,327
—
20,203
—
Other (income) expense
(1,400
)
368
(998
)
(1,039
)
Adjusted EBITDA (4)
$
104,942
$
16,801
$
216,823
$
99,126
Adjusted EBITDA margin (5)
51.8
%
9.3
%
33.7
%
17.4
%
(4)
Adjusted EBITDA is defined as net income
(loss) before net interest expense, income tax expense (benefit),
depreciation and depletion, non-cash asset retirement obligation
accretion, non-cash stock compensation expense, other non-cash
accretion, non-cash mark-to-market loss on gas hedges, business
interruption expenses, idle mine expenses and other (income)
expense. 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 (loss), income (loss) 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.
(5)
Adjusted EBITDA margin is defined as
Adjusted EBITDA divided by total revenues.
RECONCILIATION OF ADJUSTED NET INCOME
(LOSS) 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,
2021
2020
2021
2020
Net income (loss)
$
38,427
$
(14,434
)
$
12,391
$
(2,050
)
Alabama state income tax valuation
allowance
—
—
24,965
—
Business interruption, net of tax
5,419
—
10,954
—
Idle mine, net of tax
7,354
—
15,930
—
Incremental stock compensation expense,
net of tax
—
—
3,238
—
Other (income) expense, net of tax
(1,104
)
248
(820
)
(929
)
Adjusted net income (loss) (6)
$
50,096
$
(14,186
)
$
66,658
$
(2,979
)
Weighted average number of basic shares
outstanding
51,416
51,190
51,315
51,161
Weighted average number of diluted shares
outstanding
51,585
51,190
51,424
51,161
Adjusted basic net income (loss) per
share:
$
0.97
$
(0.28
)
$
1.30
$
(0.06
)
Adjusted diluted net income (loss) per
share:
$
0.97
$
(0.28
)
$
1.30
$
(0.06
)
(6)
Adjusted net income (loss) is defined as
net income (loss) net of Alabama state income tax valuation
allowance, business interruption expenses, idle mine expenses,
incremental stock compensation expense and other (income) expense,
net of tax (based on each respective period's effective tax rate).
Adjusted net income (loss) 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 (loss) should not be considered in isolation,
nor as an alternative to net income (loss) 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 (loss) 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,
2021
2020
2021
2020
OPERATING ACTIVITIES:
Net income (loss)
$
38,427
$
(14,434
)
$
12,391
$
(2,050
)
Non-cash adjustments to reconcile net
income (loss) to net cash provided by operating activities
43,006
22,910
145,589
78,502
Changes in operating assets and
liabilities:
Trade accounts receivable
(8,112
)
(4,408
)
10,028
18,054
Income tax receivable
—
24,274
—
24,274
Inventories
(14,344
)
1,707
18,703
(43,887
)
Prepaid expenses and other receivables
(476
)
(213
)
10,548
(5,906
)
Accounts payable
(4,433
)
(6,210
)
(16,746
)
11,169
Accrued expenses and other current
liabilities
9,422
4,388
(10,100
)
(4,699
)
Other
(560
)
1,153
6,417
6,696
Net cash provided by operating
activities
62,930
29,167
176,830
82,153
INVESTING ACTIVITIES:
Purchases of property, plant and
equipment
(10,498
)
(23,305
)
(34,149
)
(72,059
)
Mine development costs
—
(4,526
)
(13,462
)
(13,257
)
Proceeds from sale of property, plant and
equipment
—
—
192
—
Other
—
—
—
6,233
Net cash used in investing activities
(10,498
)
(27,831
)
(47,419
)
(79,083
)
FINANCING ACTIVITIES:
Net cash (used in) provided by financing
activities
(50,913
)
(5,586
)
(72,932
)
19,960
Net increase (decrease) in cash and cash
equivalents
1,519
(4,250
)
56,479
23,030
Cash and cash equivalents at beginning of
period
266,876
220,663
211,916
193,383
Cash and cash equivalents at end of
period
$
268,395
$
216,413
$
268,395
$
216,413
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,
2021
2020
2021
2020
Net cash provided by operating
activities
$
62,930
$
29,167
$
176,830
$
82,153
Purchases of property, plant and equipment
and mine development costs
(10,498
)
(27,831
)
(47,611
)
(85,316
)
Free cash flow (7)
$
52,432
$
1,336
$
129,219
$
(3,163
)
Free cash flow conversion (8)
50.0
%
8.0
%
59.6
%
(3.2
)%
(7)
Free cash flow is defined as net
cash provided by operating activities less purchases of property,
plant and equipment and mine development costs. 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.
(8)
Free cash flow conversion is
defined as free cash flow divided by Adjusted EBITDA.
WARRIOR MET COAL, INC.
CONDENSED BALANCE
SHEETS
($ in thousands)
September 30, 2021
(Unaudited)
December 31,
2020
ASSETS
Current assets:
Cash and cash equivalents
$
268,395
$
211,916
Short-term investments
8,505
8,504
Trade accounts receivable
73,270
83,298
Inventories, net
94,026
118,713
Prepaid expenses and other receivables
35,034
45,052
Total current assets
479,230
467,483
Mineral interests, net
94,894
100,855
Property, plant and equipment, net
606,750
637,108
Deferred income taxes
151,934
174,372
Other long-term assets
11,799
14,118
Total assets
$
1,344,607
$
1,393,936
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current liabilities:
Accounts payable
$
39,138
$
59,110
Accrued expenses
58,114
86,108
Short term financing lease liabilities
22,421
14,385
Other current liabilities
14,721
10,715
Total current liabilities
134,394
170,318
Long-term debt
340,491
379,908
Asset retirement obligations
62,340
57,553
Long term financing lease liabilities
34,805
24,091
Other long-term liabilities
37,214
36,825
Total liabilities
609,244
668,695
Stockholders’ Equity:
Common stock, $0.01 par value per share
(Authorized -140,000,000 shares as of September 30, 2021 and
December 31, 2020, 53,632,812 issued and 51,410,971 outstanding as
of September 30, 2021 and 53,408,040 issued and 51,186,199
outstanding as of December 31, 2020)
536
534
Preferred stock, $0.01 par value per share
(10,000,000 shares authorized, no shares issued and
outstanding)
—
—
Treasury stock, at cost (2,221,841 shares
as of September 30, 2021 and December 31, 2020)
(50,576
)
(50,576
)
Additional paid in capital
255,317
249,746
Retained earnings
530,086
525,537
Total stockholders’ equity
735,363
725,241
Total liabilities and stockholders’
equity
$
1,344,607
$
1,393,936
View source
version on businesswire.com: https://www.businesswire.com/news/home/20211102005296/en/
For Investors: Dale W. Boyles, 205-554-6129
dale.boyles@warriormetcoal.com
For Media: D'Andre Wright, 205-554-6131
dandre.wright@warriormetcoal.com
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