Achieved Net Income of $41.8 million, or $0.80
per diluted share
Generated Adjusted EBITDA of $78.5 million
Produced first development tons at Blue Creek
within budget and on schedule
Warrior Met Coal, Inc. (NYSE: HCC) (“Warrior” or the “Company”)
today announced results for the third quarter of 2024. Warrior is
the leading dedicated U.S.-based producer and exporter of
high-quality steelmaking coal for the global steel industry.
Warrior reported net income for the third quarter of 2024 of
$41.8 million, or $0.80 per diluted share, a decrease from net
income of $85.4 million, or $1.64 per diluted share, in the third
quarter of 2023. Adjusted net income per share for the third
quarter of 2024 was $0.80 per diluted share compared to adjusted
net income per share of $1.85 per diluted share in the third
quarter of 2023. The Company reported Adjusted EBITDA of $78.5
million in the third quarter of 2024 compared to Adjusted EBITDA of
$145.8 million in the third quarter of 2023.
Third Quarter Highlights
- Commenced continuous miner development of the first longwall
panel at the world-class Blue Creek growth project, producing the
first development tons of 39 thousand short tons;
- Completed the installation of the service cage, slope belt,
slope car and raw coal belt at Blue Creek, and made significant
progress on the preparation plant, the overland clean coal belt and
the rail and barge loadouts. Further development progress remains
on track, with the preparation plant expected to be completed in
the middle of 2025 and the longwall startup expected in the second
quarter of 2026;
- Invested $93.8 million in the continued development of Blue
Creek, which brings the year-to-date project spend to $246.4
million and the total project spend to $612.4 million; and
- Recorded $62.2 million of cash provided by operating activities
despite weaker demand in the global markets and a 12.5% decrease in
Platts Premium Low Vol FOB Australian index price from the previous
quarter.
“During the third quarter, high-quality steelmaking coal prices
reached a three-year low primarily driven by a confluence of weaker
demand, excess Chinese steel exports into our customers' markets,
and ample supply of steelmaking coals,” commented Walt Scheller,
CEO of Warrior. “We believe that current prices are below the
global cost curve and are not sustainable. While we wait for market
conditions to improve, we are carefully managing spot opportunities
and are strategically exercising patience with certain geographies.
Despite the external factors impacting our results, the third
quarter represented a significant and positive milestone for
Warrior as we produced the first development tons from our
world-class Blue Creek growth project, on time and within
budget.”
“While we expect steelmaking coal prices to improve slightly in
the fourth quarter, we believe the pricing environment will remain
under pressure due to the persistent weakness in the global steel
markets and delayed infrastructure spending in India. With our
world-class asset base, highly flexible cost structure, and a
high-performing workforce, we are well-positioned to capitalize on
improved global steel demand when the market turns, while moving
forward with our highly disciplined approach to completing the Blue
Creek project on time and within budget,” Mr. Scheller
concluded.
With the addition of Blue Creek, Warrior expects to increase its
annual High Vol A production by 4.8 million short tons; enhance its
already advantageous position on the global cost curve; drive its
cash costs further into the first quartile globally; improve its
profitability and cash flow generation; and cement its position as
a leading pure play steelmaking coal producer.
Operating Results
Sales volume in the third quarter of 2024 was 1.9 million short
tons compared to 2.3 million short tons in the third quarter of
2023, representing an 17.5% decrease. This 17.5% decrease in sales
volume was driven by us being selective with spot sales and
exercising patience while we wait for market conditions to
improve.
The Company produced 1.9 million short tons of steelmaking coal
in the third quarter of 2024, compared to 2.0 million short tons in
the third quarter of 2023, representing a 3.8% decrease. The timing
of a scheduled longwall move in the third quarter slipped to early
fourth quarter. Inventory levels increased to 915 thousand short
tons as of September 30, 2024 from 895 thousand short tons as of
June 30, 2024.
Additional Financial Results
Total revenues were $327.7 million for the third quarter of
2024, which compares to total revenues of $423.5 million in the
third quarter of 2023. The average net selling price of the
Company's steelmaking coal decreased 6.9% from $184.71 per short
ton in the third quarter of 2023 to $171.92 per short ton in the
third quarter of 2024. Our average gross selling price realization
was approximately 93% of the Platts Premium Low Vol FOB Australian
index price for the third quarter of 2024.
Cost of sales for the third quarter of 2024 were $231.6 million
compared to $260.4 million for the third quarter of 2023. Cash cost
of sales (free-on-board port) for the third quarter of 2024 were
$229.7 million, or 71.8% of mining revenues, compared to $258.8
million, or 62.1% of mining revenues in the same period of 2023.
Cash cost of sales (free-on-board port) per short ton increased to
$123.45 in the third quarter of 2024 from $114.66 in the third
quarter of 2023, driven primarily by lower sales volumes of 17.5%
offset partially by an increase in production costs driven by
increased headcount and supply costs.
Selling, general and administrative expenses for the third
quarter of 2024 were $11.4 million, or 3.5% of total revenues and
were slightly higher than the same period last year of 2.6% due to
higher employee-related costs.
Depreciation and depletion expenses for the third quarter of
2024 were $36.6 million, or 11.2% of total revenues and were
slightly higher than the same period last year of 8.0% of total
revenues primarily due to depreciation expense recognized on
additional assets placed into service. Warrior achieved net
interest income of $7.3 million during the third quarter of 2024,
which is consistent with the prior year. Interest income earned on
our cash investments continues to exceed interest expense on our
outstanding notes and equipment leases.
Income tax expense was $4.6 million in the third quarter of 2024
on pre-tax income of $46.4 million primarily driven by an income
tax benefit for foreign-derived intangible income and depletion
expense. This compares to an income tax expense of $16.8 million on
income of $102.2 million in the third quarter of 2023.
Cash Flow and Liquidity
The Company generated cash flows of $62.2 million from operating
activities in the third quarter of 2024, compared to $138.6 million
in the third quarter of 2023. Capital expenditures and mine
development for the third quarter of 2024 were $122.8 million
compared to $112.3 million in the third quarter of 2023, primarily
reflecting the continued development of the Blue Creek growth
project. Free cash flows in the third quarter of 2024 were negative
$60.6 million compared to free cash flows of $26.2 million in the
third quarter of 2023.
Net working capital, excluding cash, for the third quarter of
2024 decreased by $4.4 million from the second quarter of 2024,
primarily reflecting lower sales volumes, lower steelmaking coal
prices, lower net accounts payable and accrued expenses and higher
inventories.
Cash flows used in financing activities for the third quarter of
2024 were $8.1 million, primarily due to the payment of a regular
quarterly dividend of $4.2 million and principal repayments of
financing lease obligations of $3.8 million.
The Company’s total liquidity as of September 30, 2024 was
$746.4 million, consisting of cash and cash equivalents of $583.2
million, long-term investments of $49.7 million and available
liquidity under its ABL Facility of $113.5 million, net of
outstanding letters of credit of $2.5 million.
Capital Allocation
On October 25, 2024, our Board declared a regular quarterly cash
dividend of $0.08 per share, totaling approximately $4.2 million,
which will be paid on November 12, 2024, to stockholders of record
as of the close of business on November 5, 2024.
Company Outlook
The Company re-affirmed its guidance for the full year 2024. The
guidance is subject to many risks that may impact performance, such
as market conditions in the steel and steelmaking coal industries
and overall global economic and competitive conditions, all as more
fully described under Forward-Looking Statements.
Coal sales
7.4 - 8.2 million short tons
Coal production
7.4 - 8.0 million short tons
Cash cost of sales (free-on-board
port)
$125 - $135 per short ton
Capital expenditures for existing
mines
$100 - $110 million
Blue Creek project and other discretionary
capital expenditures
$335 - $390 million
Mine development costs
$28 - $38 million
Selling, general and administrative
expenses
$55 - $65 million
Interest expense
$4 - $6 million
Interest income
$20 - $25 million
Income tax expense
14% - 18%
Key factors that may affect outlook include:
- Two planned longwall moves remaining in Q4,
- HCC index pricing, geography of sales and freight rates,
- Exclusion of other non-recurring costs,
- Terms of any new labor contract, and
- Inflationary pressures.
The Company's guidance for its capital expenditures consists of
sustaining capital spending of approximately $100 - $110 million,
including regulatory and gas requirements, and capital spending of
$325 - $375 million for the development of the Blue Creek reserves
and $10 - $15 million for the final 4 North bunker
construction.
The Company's production guidance contains approximately 200,000
short tons of High Vol A steelmaking coal in the second half of
2024 from the continuous miner units from the Blue Creek reserves,
which are expected to be sold in the second half of 2025 after the
preparation plant comes online.
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 in a
GAAP estimate. The unavailable information could have a significant
impact on the Company's reported financial results.
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 2024 results today, October 30, 2024, 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 on October 30, 2024 until 6:30 p.m. ET on November 6,
2024. The replay will be available by calling: 1-877-344-7529
(domestic) or 1-412-317-0088 (international) and entering passcode
6016502.
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 metallurgical (met) steelmaking 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 quality 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 and has strong coking properties. The premium nature of
Warrior’s HCC makes it ideally suited as a base feed coal for steel
makers. 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 2024
guidance, sales and production growth, ability to maintain cost
structure, demand, pricing trends, management of liquidity, cash
flows, expenses and expected capital expenditures, the Company's
future ability to create value for stockholders, as well as
statements regarding production, inflationary pressures, the
development of the Blue Creek project, and the terms of any new
labor contract. 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 global
pandemics, such as the novel coronavirus ("COVID-19") pandemic, 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
any such pandemic on steel manufacturers; the impact of inflation
on the Company, the impact of geopolitical events, including the
effects of the Russia-Ukraine war; the inability of the Company to
effectively operate its mines and the resulting decrease in
production; the inability of the Company to transport its products
to customers due to rail performance issues or the impact of
weather and mechanical failures at the McDuffie Terminal at 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 net operating losses
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, 2023 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 amounts)
(Unaudited)
For the three months ended
September 30,
For the nine months ended
September 30,
2024
2023
2024
2023
Revenues:
Sales
$
319,944
$
416,888
$
1,208,366
$
1,288,412
Other revenues
7,776
6,599
19,389
24,409
Total revenues
327,720
423,487
1,227,755
1,312,821
Costs and expenses:
Cost of sales (exclusive of items shown
separately below)
231,598
260,376
778,489
723,458
Cost of other revenues (exclusive of items
shown separately below)
8,854
9,855
29,491
32,803
Depreciation and depletion
36,642
34,020
114,815
101,783
Selling, general and administrative
11,403
11,138
45,452
38,826
Business interruption
107
347
409
8,101
Total costs and expenses
288,604
315,736
968,656
904,971
Operating income
39,116
107,751
259,099
407,850
Interest expense
(1,422
)
(3,418
)
(3,458
)
(16,313
)
Interest income
8,679
10,691
26,074
31,235
Loss on early extinguishment of debt
—
(11,699
)
—
(11,699
)
Other expense
—
(1,102
)
—
(881
)
Income before income tax expense
46,373
102,223
281,715
410,192
Income tax expense
4,607
16,841
32,248
60,439
Net income
$
41,766
$
85,382
$
249,467
$
349,753
Basic and diluted net income per
share:
Net income per share—basic
$
0.80
$
1.64
$
4.78
$
6.73
Net income per share—diluted
$
0.80
$
1.64
$
4.78
$
6.72
Weighted average number of shares
outstanding—basic
52,330
52,019
52,167
51,958
Weighted average number of shares
outstanding—diluted
52,394
52,111
52,221
52,028
Dividends per share:
$
0.08
$
0.07
$
0.74
$
1.09
WARRIOR MET COAL, INC.
QUARTERLY SUPPLEMENTAL
FINANCIAL DATA AND RECONCILIATION OF NON-GAAP FINANCIAL
MEASURES
(Unaudited)
QUARTERLY SUPPLEMENTAL FINANCIAL
DATA:
(short tons in thousands)(1)
For the three months ended
September 30,
For the nine months ended
September 30,
2024
2023
2024
2023
Tons sold
1,861
2,257
6,088
5,984
Tons produced
1,917
1,993
6,140
5,676
Average net selling price
$
171.92
$
184.71
$
198.48
$
215.31
Cash cost of sales (free-on-board port)
per short ton(2)
$
123.45
$
114.66
$
127.07
$
120.21
Cost of production %
66
%
62
%
63
%
60
%
Transportation and royalties %
34
%
38
%
37
%
40
%
Cash margin per ton(3)
$
48.47
$
70.05
$
71.41
$
95.10
(1) 1 short ton is equivalent to
0.907185 metric tons.
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,
2024
2023
2024
2023
Cost of sales
$
231,598
$
260,376
$
778,489
$
723,458
Asset retirement obligation accretion
(702
)
(540
)
(2,107
)
(1,619
)
Stock compensation expense
(1,152
)
(1,049
)
(2,777
)
(2,531
)
Cash cost of sales (free-on-board
port)(2)
$
229,744
$
258,787
$
773,605
$
719,308
(2) 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 (free-on-board
port) 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
(free-on-board port) 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 (free-on-board port) may not be
comparable to similarly titled measures used by other
companies.
(3) Cash margin per ton is defined
as average net selling price less cash cost of sales (free-on-board
port) per short ton.
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:
($ in thousands)
For the three months ended
September 30,
For the nine months ended
September 30,
2024
2023
2024
2023
Net income
$
41,766
$
85,382
$
249,467
$
349,753
Interest income, net
(7,257
)
(7,273
)
(22,616
)
(14,922
)
Income tax expense
4,607
16,841
32,248
60,439
Depreciation and depletion
36,642
34,020
114,815
101,783
Asset retirement obligation accretion
1,302
990
3,897
2,886
Stock compensation expense
874
2,258
15,061
14,533
Other non-cash accretion
451
414
1,353
1,241
Mark-to-market gain on gas hedges
—
—
—
(1,227
)
Business interruption
107
347
409
8,101
Loss on early extinguishment of debt
—
11,699
—
11,699
Other expense
—
1,102
—
881
Adjusted EBITDA(4)
$
78,492
$
145,780
$
394,634
$
535,167
Adjusted EBITDA margin(5)
24.0
%
34.4
%
32.1
%
40.8
%
Adjusted EBITDA per short
ton(6)
$
42.18
$
64.59
$
64.82
$
89.43
(4) Adjusted EBITDA is defined as
net income before net interest income, net, income tax expense,
depreciation and depletion, non-cash asset retirement obligation
accretion, non-cash stock compensation expense, other non-cash
accretion, mark-to-market gain on gas hedges, business interruption
expenses and other income. 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.
(5) Adjusted EBITDA margin is
defined as Adjusted EBITDA divided by total revenues.
(6) Adjusted EBITDA per ton is
defined as Adjusted EBITDA divided by short tons sold.
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,
2024
2023
2024
2023
Net income
$
41,766
$
85,382
$
249,467
$
349,753
Business interruption, net of tax
89
296
267
6,908
Loss on extinguishment of debt, net of
tax
—
9,976
—
9,976
Other expense, net of tax
—
940
—
751
Adjusted net income(7)
$
41,855
$
96,594
$
249,734
$
367,388
Weighted average number of shares
outstanding—basic
52,330
52,019
52,167
51,958
Weighted average number of shares
outstanding—diluted
52,394
52,111
52,221
52,028
Adjusted net income per share—basic
$
0.80
$
1.86
$
4.79
$
7.07
Adjusted net income per share—diluted
$
0.80
$
1.85
$
4.78
$
7.06
(7) Adjusted net income is defined
as net income net of business interruption expenses and other
income, 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,
2024
2023
2024
2023
OPERATING ACTIVITIES:
Net income
$
41,766
$
85,382
$
249,467
$
349,753
Non-cash adjustments to reconcile net
income to net cash provided by operating activities
29,084
63,756
131,606
184,908
Depreciation and depletion
36,642
34,020
114,815
101,783
Deferred income tax expense
(10,133
)
14,237
(3,355
)
52,363
Stock based compensation expense
874
2,198
15,061
14,473
Amortization of debt issuance costs and
debt discount
399
481
1,188
1,704
Accretion of asset retirement
obligations
1,302
990
3,897
2,886
Loss on early extinguishment of debt
—
11,699
—
11,699
Mark-to-market loss on gas hedges
—
131
—
—
Changes in operating assets and
liabilities:
Trade accounts receivable
30,082
(60,592
)
(54,402
)
(116,298
)
Income tax receivable
—
—
7,833
—
Inventories
(16,011
)
27,127
(8,094
)
35,624
Prepaid expenses and other receivables
(804
)
2,647
(3,727
)
(515
)
Accounts payable
(18,326
)
10,228
6,146
7,065
Accrued expenses and other current
liabilities
9,491
11,984
(403
)
(10,505
)
Other
(13,074
)
(1,958
)
(15,185
)
5,986
Net cash provided by operating
activities
62,208
138,574
313,241
456,018
INVESTING ACTIVITIES:
Purchases of property, plant and
equipment
(115,878
)
(106,525
)
(326,542
)
(310,820
)
Mine development costs
(6,900
)
(5,824
)
(19,544
)
(31,511
)
Acquisitions, net of cash acquired
—
—
—
(2,421
)
Purchases of long-term investments
(49,721
)
—
(49,721
)
—
Net cash used in investing activities
(172,499
)
(112,349
)
(395,807
)
(344,752
)
FINANCING ACTIVITIES:
Net cash used in financing activities
(8,088
)
(166,835
)
(64,987
)
(253,935
)
Net decrease in cash, cash equivalents and
restricted cash
(118,379
)
(140,610
)
(147,553
)
(142,669
)
Cash, cash equivalents and restricted cash
at beginning of period
709,023
827,421
738,197
829,480
Cash, cash equivalents and restricted cash
at end of period
$
590,644
$
686,811
$
590,644
$
686,811
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,
2024
2023
2024
2023
Net cash provided by operating
activities
$
62,208
$
138,574
$
313,241
$
456,018
Purchases of property, plant and equipment
and mine development costs
(122,778
)
(112,349
)
(346,086
)
(342,331
)
Free cash flow(8)
$
(60,570
)
$
26,225
$
(32,845
)
$
113,687
Free cash flow conversion(9)
(77.2
)%
18.0
%
(8.3
)%
21.2
%
(8) 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.
(9) Free cash flow conversion is
defined as free cash flow divided by Adjusted EBITDA.
WARRIOR MET COAL, INC.
CONDENSED BALANCE
SHEETS
(in thousands, except share
and per-share data)
September 30, 2024
December 31,
2023
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents
$
583,158
$
738,197
Short-term investments
9,392
9,030
Trade accounts receivable
152,627
98,225
Income tax receivable
—
7,833
Inventories, net
191,295
183,949
Prepaid expenses and other receivables
35,660
31,932
Total current assets
972,132
1,069,166
Restricted cash
7,486
—
Mineral interests, net
74,267
80,442
Property, plant and equipment, net
1,439,214
1,179,609
Deferred income taxes
5,411
5,854
Long-term investments
49,721
—
Other long-term assets
32,217
21,987
Total assets
$
2,580,448
$
2,357,058
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current liabilities:
Accounts payable
$
45,112
$
36,245
Accrued expenses
76,315
81,612
Short-term financing lease liabilities
13,512
11,463
Other current liabilities
32,394
18,350
Total current liabilities
167,333
147,670
Long-term debt
153,460
153,023
Asset retirement obligations
71,201
71,666
Long-term financing lease liabilities
3,405
8,756
Deferred income taxes
70,732
74,531
Other long-term liabilities
27,490
26,966
Total liabilities
493,621
482,612
Stockholders’ Equity:
Common stock, $0.01 par value,
(140,000,000 shares authorized as of September 30, 2024 and
December 31, 2023; 54,533,374 issued and 52,311,533 outstanding as
of September 30, 2024; 54,240,764 issued and 52,018,923 outstanding
as of December 31, 2023)
545
542
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, 2024 and December 31, 2023)
(50,576
)
(50,576
)
Additional paid in capital
282,718
279,332
Retained earnings
1,854,140
1,645,148
Total stockholders’ equity
2,086,827
1,874,446
Total liabilities and stockholders’
equity
$
2,580,448
$
2,357,058
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241030900558/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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