Warrior Met Coal Reports Fourth Quarter and Full Year 2023 Results
- Record net income and Adjusted EBITDA for Q4 and full-year 2023.
- 34% increase in sales volumes and 21% increase in production volumes.
- Raised quarterly dividend by 17% and returned excess cash to stockholders.
- On track with the Blue Creek growth project, expecting production in 2024.
- Positive outlook for 2024 driven by higher coal production and sales.
- None.
Insights
The financial performance of Warrior Met Coal, Inc. for the fourth quarter and full-year 2023 indicates a robust operational year with significant growth in sales and production volumes. The company's strategic investments, particularly in the Blue Creek growth project, reflect a forward-looking approach to capital allocation aimed at long-term growth and shareholder value. The company's ability to generate substantial cash flows has facilitated aggressive capital expenditures and debt reduction, which can be seen as positive indicators of financial health and operational efficiency.
From a financial standpoint, the reduction of leverage by nearly 50% is a strong move towards improving the balance sheet and reducing interest expenses, which can lead to improved net income margins. The increase in dividends for the third consecutive year, along with a special dividend, signals confidence in the company's continued cash generation abilities and reflects a shareholder-friendly capital return policy. However, investors should be aware of the potential risks associated with the capital-intensive nature of the mining industry, including fluctuating commodity prices and operational risks that can impact future profitability.
Warrior Met Coal's focus on the production of High Vol A coal is strategic, given its premium quality and pricing potential in the market. The global market dynamics for steelmaking coal, particularly the supply tightness for premium coals, are likely to support the company's pricing power and sales outlook. The company's emphasis on the Pacific Basin markets, where demand continues to grow, could serve as a catalyst for future sales growth, diversifying market risks associated with the Atlantic Basin's current weak spot demand.
It is important to monitor the competitive landscape and global economic indicators that influence steel production and, consequently, the demand for metallurgical coal. The company's outlook for 2024, suggesting another strong operational year, is contingent upon these market conditions. Investors should be cognizant of the inherent volatility in commodity markets and the potential impact on Warrior's performance.
The development of the Blue Creek growth project represents a significant milestone for Warrior Met Coal, as it taps into one of the last remaining premium High Vol A coal reserves in the U.S. This investment is expected to enhance the company's cost curve positioning and deliver incremental profit margins. The project scope changes initiated in 2023, aimed at reducing operating costs and increasing flexibility, are indicative of proactive management in project execution.
However, the company's acknowledgment of inflationary cost increases of 25 to 35 percent in operating and capital expenditures is a concern that could affect the project's ultimate cost and timeline. While these investments are expected to yield long-term benefits, there is an element of risk in terms of cost overruns and potential delays. It is essential to evaluate these factors against the backdrop of the mining industry's capital-intensive nature and the cyclical nature of commodity prices.
Met or exceeded both sales and production volume targets for the full year
Continues to make excellent progress in developing its world-class Blue Creek growth project, funded through
Outlines guidance for 2024
Fourth Quarter and Full Year Highlights
-
Achieved net income of
$128.9 million $163.7 million $478.6 million $698.9 million -
Recorded
34% increase in sales volumes and21% increase in production volumes for the full year, run rates not seen since 2020 - Achieved record high annual production at Mine 4 of 2.5 million short tons
-
Generated
$701.1 million $524.8 million 50% of senior secured debt. -
Made excellent progress in developing the world class Blue Creek growth project, which remains on schedule, and invested
$127.8 million $319.1 million -
Raised the quarterly dividend by
17% for the second consecutive year and returned excess cash to stockholders in a discretionary special dividend of$0.88 - Guiding to favorable outlook in 2024
“Our fourth quarter results reflect the culmination of a highly productive year where we made meaningful progress on strategic priorities to build significant, sustainable shareholder value,” said Walt Scheller, CEO of Warrior. “We were pleased to end the year on a strong note, delivering within the top half of our full year guidance which would have been slightly better by 129,000 short tons of shipments had our last two customer vessels made it to the terminal on their original schedule. Moreover, as a result of our operational expertise in combination with market pricing, we were gratified to deliver on our financial targets and guidance for the year. We also generated strong cash flow from operations which allowed us to fund the 2023 investment in the world class Blue Creek growth project from our operations, while reducing leverage by nearly
“We continue to make excellent progress in developing Blue Creek,” Scheller said. “We remain on track for the first development tons from continuous miner units in the third quarter of 2024 and the longwall is scheduled to start up in the second quarter of 2026. We expect approximately 200,000 short tons of production of High Vol A coal from the continuous miner units in 2024.”
“Looking ahead to the global markets for steelmaking coal, we believe the tightness in supply, especially of premium quality coals such as those in our Mine 7, is supporting higher pricing. While spot demand from our customers in the Atlantic Basin is weak, overall demand from our contracted customers is stable and demand continues to grow in the Pacific Basin. Our full-year outlook encompasses this favorable landscape, and we expect that 2024 could be another strong operational year for Warrior, driven by expected higher coal production and sales,” Scheller concluded.
Warrior reported fourth quarter 2023 net income of
For the full year, Warrior reported net income of
Operating Results
Sales volumes in the fourth quarter of 2023 were 1.5 million short tons, consistent with the fourth quarter of 2022. Sales volumes for the full year 2023 were 7.5 million short tons, or an increase of
The Company produced 2.0 million short tons of met coal in the fourth quarter of 2023 compared to 1.5 million short tons in the fourth quarter of 2022. For the full year 2023, the Company produced 7.6 million short tons, or an increase of
Additional Financial Results
Total revenues were
Cost of sales for the fourth quarter of 2023 was
Selling, general and administrative expenses for the fourth quarter of 2023 were
Depreciation and depletion costs for the fourth quarter of 2023 were
Business interruption expenses were
Income tax expense was
Cash Flow and Liquidity
The Company generated cash flows from operating activities in the fourth quarter of 2023 of
Net working capital, excluding cash, for the fourth quarter of 2023 decreased by
Cash flows used in financing activities for the fourth quarter of 2023 were
The Company generated
The Company’s total liquidity as of December 31, 2023 was
Capital Allocation
On February 9, 2024, the Board of Directors (the "Board") declared a regular quarterly cash dividend of
In addition, on February 9, 2024, the Board declared a special cash dividend (the "March 2024 Special Dividend") of
Any future special dividends or stock repurchases from excess cash flows will be at the discretion of the Board and subject to consideration of several factors including business and market conditions, future financial performance, and other strategic investment opportunities. The Company will also seek to optimize its capital structure to improve returns to stockholders while allowing flexibility for the Company to pursue very selective strategic growth opportunities that can provide compelling stockholder returns.
Progress at Blue Creek
Warrior invested approximately
Blue Creek represents one of the last remaining untapped premium quality High Vol A coal reserves in the
Company Outlook
The Company's outlook for 2024 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. The Company's guidance for the full year 2024 is outlined below.
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) |
|
Capital expenditures for sustaining existing mines |
|
Blue Creek project and other discretionary capital expenditures |
|
Mine development costs |
|
Selling, general and administrative expenses |
|
Interest expense |
|
Interest income |
|
Income tax expense |
|
Key factors that may affect outlook include:
- Four planned longwall moves (Q1, Q3, and Q4 has two moves),
- HCC index pricing, geography of sales and freight rates,
- Exclusion of other non-recurring costs,
- New labor contract, and
- Inflationary pressures.
The Company's guidance for its capital expenditures consists of sustaining capital spending of approximately
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 2025 when the preparation plant comes online.
Environmental, Social and Governance Sustainability
The Company recently published its annual corporate environmental, social and governance sustainability report for 2023, which is located at http://www.warriormetcoal.com/corporate-sustainability/. The report was prepared in accordance with the codified standards of the Sustainability Accounting Standards Board. The Company is committed to transparency and open conversations surrounding environmental, social and governance topics. Although Warrior's underground steelmaking coal operations have a minimal environmental impact compared to surface-mined thermal coal, the Company strives to be an environmental steward by focusing on preservation of the environment, monitoring energy use, reducing greenhouse gas (GHG) emissions and effective land reclamation.
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 fourth quarter 2023 results today, February 14, 2024, at 4:30 p.m. ET. To listen to the event live or access an archived recording, please visit http://investors.warriormetcoal.com/. 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 February 14, 2024, until 6:30 p.m. ET on February 21, 2024. The replay will be available by calling: 1-877-344-7529 (domestic) or 1-412-317-0088 (international) and entering passcode 4141099.
About Warrior
Warrior is a
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, anticipated prices for our coal, management of liquidity, cash flows, expenses and expected capital expenditures and working capital, the Company's pursuit of strategic growth opportunities, the Company's future ability to return excess cash to stockholders, as well as statements regarding production, inflationary pressures, the impact of planned longwall moves, the development of the Blue Creek project and anticipated production generated by Blue Creek, and the outcome of the ongoing negotiations with the labor union representing certain of our hourly employees, including any potential impact to our 2024 outlook 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 global pandemics, such as the novel coronavirus (“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 any such pandemic on steel manufacturers; the impact of inflation on the Company, the impact of geopolitical events, including the effects of the
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.
|
|||||||||||||||
For the three months ended December 31, |
|
For the twelve months ended December 31, |
|||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Revenues: |
|
|
|
|
|
|
|
||||||||
Sales |
$ |
359,580 |
|
|
$ |
329,914 |
|
|
$ |
1,647,992 |
|
|
$ |
1,707,579 |
|
Other revenues |
|
4,224 |
|
|
|
14,836 |
|
|
|
28,633 |
|
|
|
31,159 |
|
Total revenues |
|
363,804 |
|
|
|
344,750 |
|
|
|
1,676,625 |
|
|
|
1,738,738 |
|
Costs and expenses: |
|
|
|
|
|
|
|
||||||||
Cost of sales (exclusive of items shown separately below) |
|
186,811 |
|
|
|
180,736 |
|
|
|
910,269 |
|
|
|
710,605 |
|
Cost of other revenues (exclusive of items shown separately below) |
|
4,683 |
|
|
|
927 |
|
|
|
37,486 |
|
|
|
27,047 |
|
Depreciation and depletion |
|
25,573 |
|
|
|
28,306 |
|
|
|
127,356 |
|
|
|
115,279 |
|
Selling, general and administrative |
|
12,991 |
|
|
|
11,806 |
|
|
|
51,817 |
|
|
|
48,791 |
|
Business interruption |
|
190 |
|
|
|
3,371 |
|
|
|
8,291 |
|
|
|
23,455 |
|
Idle mine |
|
— |
|
|
|
1,996 |
|
|
|
— |
|
|
|
12,137 |
|
Total costs and expenses |
|
230,248 |
|
|
|
227,142 |
|
|
|
1,135,219 |
|
|
|
937,314 |
|
Operating income |
|
133,556 |
|
|
|
117,608 |
|
|
|
541,406 |
|
|
|
801,424 |
|
Interest expense |
|
(1,647 |
) |
|
|
(6,820 |
) |
|
|
(17,960 |
) |
|
|
(31,433 |
) |
Interest income |
|
9,464 |
|
|
|
8,531 |
|
|
|
40,699 |
|
|
|
12,438 |
|
Loss on early extinguishment of debt |
|
— |
|
|
|
— |
|
|
|
(11,699 |
) |
|
|
— |
|
Other (expense) income |
|
(146 |
) |
|
|
— |
|
|
|
(1,027 |
) |
|
|
675 |
|
Income before income tax expense |
$ |
141,227 |
|
|
$ |
119,319 |
|
|
$ |
551,419 |
|
|
$ |
783,104 |
|
Income tax expense |
|
12,351 |
|
|
|
19,665 |
|
|
|
72,790 |
|
|
|
141,806 |
|
Net income |
$ |
128,876 |
|
|
$ |
99,654 |
|
|
$ |
478,629 |
|
|
$ |
641,298 |
|
Basic and diluted net income per share: |
|
|
|
|
|
|
|
||||||||
Net income per share—basic |
$ |
2.48 |
|
|
$ |
1.93 |
|
|
$ |
9.21 |
|
|
$ |
12.42 |
|
Net income per share—diluted |
$ |
2.47 |
|
|
$ |
1.93 |
|
|
$ |
9.20 |
|
|
$ |
12.40 |
|
Weighted average number of shares outstanding—basic |
$ |
52,019 |
|
|
|
51,654 |
|
|
|
51,973 |
|
|
|
51,622 |
|
Weighted average number of shares outstanding—diluted |
|
52,122 |
|
|
|
51,760 |
|
|
|
52,045 |
|
|
|
51,715 |
|
Dividends per share: |
$ |
0.07 |
|
|
$ |
0.06 |
|
|
$ |
1.16 |
|
|
$ |
1.54 |
|
WARRIOR MET COAL, INC. QUARTERLY SUPPLEMENTAL FINANCIAL DATA AND RECONCILIATION OF NON-GAAP FINANCIAL MEASURES |
|||||||||||||||
QUARTERLY SUPPLEMENTAL FINANCIAL DATA: |
|||||||||||||||
|
For the three months ended December 31, |
|
For the twelve months ended December 31, |
||||||||||||
(short tons in thousands)(1) |
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Tons sold |
|
1,533 |
|
|
|
1,452 |
|
|
|
7,518 |
|
|
|
5,621 |
|
Tons produced |
|
1,970 |
|
|
|
1,468 |
|
|
|
7,646 |
|
|
|
6,315 |
|
Average net selling price |
$ |
234.56 |
|
|
$ |
227.21 |
|
|
$ |
219.21 |
|
|
$ |
303.79 |
|
Cash cost of sales (free on board port) per short ton(2) |
$ |
120.69 |
|
|
$ |
123.40 |
|
|
$ |
120.29 |
|
|
$ |
125.50 |
|
Cost of production % |
|
61 |
% |
|
|
60 |
% |
|
|
60 |
% |
|
|
53 |
% |
Transportation and royalties % |
|
39 |
% |
|
|
40 |
% |
|
|
40 |
% |
|
|
47 |
% |
(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 |
|||||||||||||||
(In thousands) |
For the three months ended December 31, |
|
For the twelve months ended December 31, |
||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Cost of sales |
$ |
186,811 |
|
|
$ |
180,736 |
|
|
$ |
910,269 |
|
|
$ |
710,605 |
|
Asset retirement obligation accretion and valuation adjustments |
|
(490 |
) |
|
|
(321 |
) |
|
|
(2,109 |
) |
|
|
(1,801 |
) |
Stock compensation expense |
|
(1,310 |
) |
|
|
(1,243 |
) |
|
|
(3,841 |
) |
|
|
(3,379 |
) |
Cash cost of sales (free-on-board port)(2) |
$ |
185,011 |
|
|
$ |
179,172 |
|
|
$ |
904,319 |
|
|
$ |
705,425 |
|
(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 per short ton is a non-GAAP financial measure which is not calculated in conformity with |
|||||||||||||||
WARRIOR MET COAL, INC.
|
|||||||||||||||
RECONCILIATION OF ADJUSTED EBITDA TO AMOUNTS REPORTED UNDER |
|||||||||||||||
|
For the three months ended December 31, |
|
For the twelve months ended December 31, |
||||||||||||
(In thousands) |
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Net income |
$ |
128,876 |
|
|
$ |
99,654 |
|
|
$ |
478,629 |
|
|
$ |
641,298 |
|
Interest (income) expense, net |
|
(7,817 |
) |
|
|
(1,711 |
) |
|
|
(22,739 |
) |
|
|
18,995 |
|
Income tax expense |
|
12,351 |
|
|
|
19,665 |
|
|
|
72,790 |
|
|
|
141,806 |
|
Depreciation and depletion |
|
25,573 |
|
|
|
28,306 |
|
|
|
127,356 |
|
|
|
115,279 |
|
Asset retirement obligation accretion and valuation adjustments |
|
1,649 |
|
|
|
(725 |
) |
|
|
4,535 |
|
|
|
1,941 |
|
Stock compensation expense |
|
3,767 |
|
|
|
3,371 |
|
|
|
18,300 |
|
|
|
17,621 |
|
Other non-cash accretion and valuation adjustments |
|
(1,036 |
) |
|
|
(6,386 |
) |
|
|
205 |
|
|
|
(5,344 |
) |
Non-cash mark-to-market (gain) loss on gas hedges |
|
— |
|
|
|
— |
|
|
|
(1,227 |
) |
|
|
27,708 |
|
Loss on early extinguishment of debt |
|
— |
|
|
|
— |
|
|
|
11,699 |
|
|
|
— |
|
Business interruption |
|
190 |
|
|
|
3,371 |
|
|
|
8,291 |
|
|
|
23,455 |
|
Idle mine |
|
— |
|
|
|
1,996 |
|
|
|
— |
|
|
|
12,137 |
|
Other expense (income) |
|
146 |
|
|
|
— |
|
|
|
1,027 |
|
|
|
(675 |
) |
Adjusted EBITDA (3) |
$ |
163,699 |
|
|
$ |
147,541 |
|
|
$ |
698,866 |
|
|
$ |
994,221 |
|
Adjusted EBITDA margin (4) |
|
45.0 |
% |
|
|
42.8 |
% |
|
|
41.7 |
% |
|
|
57.2 |
% |
(3) Adjusted EBITDA is defined as net income before net interest (income) expense, income tax expense, depreciation and depletion, non-cash asset retirement obligation accretion and valuation adjustments, non-cash stock compensation expense, other non-cash accretion and valuation adjustments, non-cash mark-to-market (gain) loss on gas hedges, loss on early extinguishment of debt, business interruption expenses, idle mine 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. |
|||||||||||||||
(4) Adjusted EBITDA margin is defined as Adjusted EBITDA divided by total revenues. |
|||||||||||||||
RECONCILIATION OF ADJUSTED NET INCOME TO AMOUNTS REPORTED UNDER |
||||||||||||||
(In thousands, except per share amounts) |
For the three months ended December 31, |
|
For the twelve months ended December 31, |
|||||||||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|||||||
Net income |
$ |
128,876 |
|
|
$ |
99,654 |
|
|
$ |
478,629 |
|
$ |
641,298 |
|
Asset retirement obligation accretion and valuation adjustments, net of tax |
|
1,300 |
|
|
|
(572 |
) |
|
|
3,576 |
|
|
1,530 |
|
Other non-cash accretion and valuation adjustments, net of tax |
|
(817 |
) |
|
|
(5,035 |
) |
|
|
162 |
|
|
(4,214 |
) |
Business interruption, net of tax |
|
150 |
|
|
|
2,658 |
|
|
|
6,537 |
|
|
18,494 |
|
Idle mine, net of tax |
|
— |
|
|
|
1,574 |
|
|
|
— |
|
|
9,570 |
|
Loss on early extinguishment of debt, net of tax |
|
— |
|
|
|
— |
|
|
|
9,225 |
|
|
— |
|
Other expense (income), net of tax |
|
115 |
|
|
|
— |
|
|
|
810 |
|
|
(532 |
) |
Adjusted net income (5) |
$ |
129,624 |
|
|
$ |
98,279 |
|
|
$ |
498,939 |
|
$ |
666,146 |
|
|
|
|
|
|
|
|
|
|||||||
Weighted average number of basic shares outstanding |
|
52,019 |
|
|
|
51,654 |
|
|
|
51,973 |
|
|
51,622 |
|
Weighted average number of diluted shares outstanding |
|
52,122 |
|
|
|
51,760 |
|
|
|
52,045 |
|
|
51,715 |
|
|
|
|
|
|
|
|
|
|||||||
Adjusted basic net income per share: |
$ |
2.49 |
|
|
$ |
1.90 |
|
|
$ |
9.60 |
|
$ |
12.90 |
|
Adjusted diluted net income per share: |
$ |
2.49 |
|
|
$ |
1.90 |
|
|
$ |
9.59 |
|
$ |
12.88 |
|
(5) Adjusted net income is defined as net income net of asset retirement obligation accretion and valuation adjustment, other non-cash accretion and valuation adjustments, business interruption expenses, idle mine expenses, loss on early extinguishment of debt 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.
|
|||||||||||||||
For the three months ended December 31, |
|
For the twelve months ended December 31, |
|||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
OPERATING ACTIVITIES: |
|
|
|
|
|
|
|
||||||||
Net income |
$ |
128,876 |
|
|
$ |
99,654 |
|
|
$ |
478,629 |
|
|
$ |
641,298 |
|
Non-cash adjustments to reconcile net income to net cash provided by operating activities |
|
31,854 |
|
|
|
50,846 |
|
|
|
216,762 |
|
|
|
283,855 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
||||||||
Trade accounts receivable |
|
169,899 |
|
|
|
63,346 |
|
|
|
53,601 |
|
|
|
(29,676 |
) |
Income tax receivable |
|
(7,833 |
) |
|
|
— |
|
|
|
(7,833 |
) |
|
|
— |
|
Inventories |
|
(66,409 |
) |
|
|
(6,587 |
) |
|
|
(30,785 |
) |
|
|
(79,845 |
) |
Prepaid expenses and other receivables |
|
(332 |
) |
|
|
(766 |
) |
|
|
(847 |
) |
|
|
8,113 |
|
Accounts payable |
|
(6,850 |
) |
|
|
(12,051 |
) |
|
|
215 |
|
|
|
(5,442 |
) |
Accrued expenses and other current liabilities |
|
1,860 |
|
|
|
2,759 |
|
|
|
(8,645 |
) |
|
|
22,803 |
|
Other |
|
(5,974 |
) |
|
|
(2,207 |
) |
|
|
11 |
|
|
|
798 |
|
Net cash provided by operating activities |
|
245,091 |
|
|
|
194,994 |
|
|
|
701,108 |
|
|
|
841,904 |
|
INVESTING ACTIVITIES: |
|
|
|
|
|
|
|
||||||||
Purchases of property, plant and equipment, and other |
|
(180,854 |
) |
|
|
(85,220 |
) |
|
|
(491,674 |
) |
|
|
(205,242 |
) |
Mine development costs |
|
(1,601 |
) |
|
|
(13,245 |
) |
|
|
(33,112 |
) |
|
|
(48,935 |
) |
Acquisition of leased mineral rights |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(3,500 |
) |
Acquisition, net of cash acquired |
|
— |
|
|
|
— |
|
|
|
(2,421 |
) |
|
|
2,533 |
|
Net cash used in investing activities |
|
(182,455 |
) |
|
|
(98,465 |
) |
|
|
(527,207 |
) |
|
|
(255,144 |
) |
FINANCING ACTIVITIES: |
|
|
|
|
|
|
|
||||||||
Net cash used in financing activities |
|
(11,250 |
) |
|
|
(12,715 |
) |
|
|
(265,184 |
) |
|
|
(153,119 |
) |
Net increase (decrease) in cash and cash equivalents |
|
51,386 |
|
|
|
83,814 |
|
|
|
(91,283 |
) |
|
|
433,641 |
|
Cash and cash equivalents at beginning of period |
|
686,811 |
|
|
|
745,666 |
|
|
|
829,480 |
|
|
|
395,839 |
|
Cash and cash equivalents at end of period |
$ |
738,197 |
|
|
$ |
829,480 |
|
|
$ |
738,197 |
|
|
$ |
829,480 |
|
RECONCILIATION OF FREE CASH FLOW TO AMOUNTS REPORTED UNDER |
|||||||||||||||
(In thousands) |
For the three months ended December 31, |
|
For the twelve months ended December 31, |
||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Net cash provided by operating activities |
$ |
245,091 |
|
|
$ |
194,994 |
|
|
$ |
701,108 |
|
|
$ |
841,904 |
|
Purchases of property, plant and equipment and mine development costs |
|
(182,455 |
) |
|
|
(98,465 |
) |
|
|
(524,786 |
) |
|
|
(254,177 |
) |
Free cash flow (6) |
$ |
62,636 |
|
|
$ |
96,529 |
|
|
$ |
176,322 |
|
|
$ |
587,727 |
|
Free cash flow conversion (7) |
|
38.3 |
% |
|
|
65.4 |
% |
|
|
25.2 |
% |
|
|
59.1 |
% |
(6) 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. |
|||||||||||||||
(7) Free cash flow conversion is defined as free cash flow divided by Adjusted EBITDA. |
|||||||||||||||
WARRIOR MET COAL, INC.
|
||||||||
|
December 31, 2023 |
|
December 31, 2022 |
|||||
ASSETS |
|
|
|
|
||||
Current assets: |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
738,197 |
|
|
$ |
829,480 |
|
Short-term investments |
|
|
9,030 |
|
|
|
8,608 |
|
Trade accounts receivable |
|
|
98,225 |
|
|
|
151,826 |
|
Income tax receivable |
|
|
7,833 |
|
|
|
— |
|
Inventories, net |
|
|
183,949 |
|
|
|
154,039 |
|
Prepaid expenses and other receivables |
|
|
31,932 |
|
|
|
29,156 |
|
Total current assets |
|
|
1,069,166 |
|
|
|
1,173,109 |
|
Mineral interests, net |
|
|
80,442 |
|
|
|
88,636 |
|
Property, plant and equipment, net |
|
|
1,179,609 |
|
|
|
738,947 |
|
Deferred income taxes |
|
|
5,854 |
|
|
|
7,572 |
|
Other long-term assets |
|
|
21,987 |
|
|
|
19,831 |
|
Total assets |
|
$ |
2,357,058 |
|
|
$ |
2,028,095 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
||||
Current liabilities: |
|
|
|
|
||||
Accounts payable |
|
$ |
36,245 |
|
|
$ |
39,026 |
|
Accrued expenses |
|
|
81,612 |
|
|
|
77,435 |
|
Short term financing lease liabilities |
|
|
11,463 |
|
|
|
24,089 |
|
Other current liabilities |
|
|
18,350 |
|
|
|
12,574 |
|
Total current liabilities |
|
|
147,670 |
|
|
|
153,124 |
|
Long-term debt |
|
|
153,023 |
|
|
|
302,588 |
|
Asset retirement obligations |
|
|
71,666 |
|
|
|
64,581 |
|
Long-term financing lease liabilities |
|
|
8,756 |
|
|
|
9,002 |
|
Deferred income taxes |
|
|
74,531 |
|
|
|
23,378 |
|
Other long-term liabilities |
|
|
26,966 |
|
|
|
27,907 |
|
Total liabilities |
|
|
482,612 |
|
|
|
580,580 |
|
Stockholders’ Equity: |
|
|
|
|
||||
Common stock, |
|
|
542 |
|
|
|
539 |
|
Preferred stock, |
|
|
— |
|
|
|
— |
|
Treasury stock, at cost (2,221,841 shares as of December 31, 2023, and December 31, 2022) |
|
|
(50,576 |
) |
|
|
(50,576 |
) |
Additional paid in capital |
|
|
279,332 |
|
|
|
269,956 |
|
Retained earnings |
|
|
1,645,148 |
|
|
|
1,227,596 |
|
Total stockholders’ equity |
|
|
1,874,446 |
|
|
|
1,447,515 |
|
Total liabilities and stockholders’ equity |
|
$ |
2,357,058 |
|
|
$ |
2,028,095 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240214579951/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
Source: Warrior Met Coal, Inc.
FAQ
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