Warrior Reports Third Quarter 2024 Results
Warrior Met Coal reported Q3 2024 net income of $41.8 million ($0.80 per diluted share), down from $85.4 million ($1.64 per diluted share) in Q3 2023. The company achieved Adjusted EBITDA of $78.5 million, compared to $145.8 million in Q3 2023. Sales volume decreased 17.5% to 1.9 million short tons, while production declined 3.8%. Total revenues were $327.7 million, down from $423.5 million. The company reached a milestone by producing first development tons at its Blue Creek project, investing $93.8 million in its development during Q3, bringing total project spend to $612.4 million.
Warrior Met Coal ha riportato un utile netto per il terzo trimestre 2024 di $41,8 milioni ($0,80 per azione diluita), in calo rispetto a $85,4 milioni ($1,64 per azione diluita) nel terzo trimestre 2023. L'azienda ha raggiunto un EBITDA Adjusted di $78,5 milioni, rispetto ai $145,8 milioni del terzo trimestre 2023. Il volume delle vendite è diminuito del 17,5% a 1,9 milioni di tonnellate corte, mentre la produzione è calata del 3,8%. I ricavi totali sono stati di $327,7 milioni, in calo rispetto a $423,5 milioni. L'azienda ha raggiunto un traguardo producendo le prime tonnellate di sviluppo nel suo progetto Blue Creek, investendo $93,8 milioni nel suo sviluppo durante il terzo trimestre, portando la spesa totale del progetto a $612,4 milioni.
Warrior Met Coal reportó un ingreso neto de $41.8 millones ($0.80 por acción diluida) en el tercer trimestre de 2024, una disminución respecto a los $85.4 millones ($1.64 por acción diluida) en el tercer trimestre de 2023. La compañía logró un EBITDA Ajustado de $78.5 millones, comparado con los $145.8 millones en el tercer trimestre de 2023. El volumen de ventas disminuyó un 17.5% a 1.9 millones de toneladas cortas, mientras que la producción cayó un 3.8%. Los ingresos totales fueron de $327.7 millones, una disminución desde los $423.5 millones. La compañía alcanzó un hito al producir las primeras toneladas de desarrollo en su proyecto Blue Creek, invirtiendo $93.8 millones en su desarrollo durante el tercer trimestre, llevando el gasto total del proyecto a $612.4 millones.
Warrior Met Coal는 2024년 3분기 순이익이 4,180만 달러(희석 주당 0.80달러)로, 2023년 3분기 8,540만 달러(희석 주당 1.64달러)에서 감소했다고 보고했습니다. 이 회사는 3분기 기준으로 7,850만 달러의 조정 EBITDA를 달성했으며, 이는 2023년 3분기 1억 4,580만 달러에 비해 감소한 수치입니다. 판매량은 17.5% 감소하여 190만 단톤에 이르렀고, 생산량은 3.8% 감소했습니다. 총 수익은 3억 2,770만 달러로, 4억 2,350만 달러에서 감소했습니다. 이 회사는 블루 크릭 프로젝트에서 첫 개발 톤수를 생산함으로써 이정표를 세우고, 3분기 동안 개발에 9,380만 달러를 투자하여 총 프로젝트 비용을 6억 1,240만 달러로 늘렸습니다.
Warrior Met Coal a annoncé un revenu net de 41,8 millions de dollars (0,80 $ par action diluée) pour le troisième trimestre 2024, en baisse par rapport à 85,4 millions de dollars (1,64 $ par action diluée) au troisième trimestre 2023. La société a réalisé un EBITDA Ajusté de 78,5 millions de dollars, comparativement à 145,8 millions de dollars au troisième trimestre 2023. Le volume des ventes a diminué de 17,5 % pour atteindre 1,9 million de tonnes courtes, tandis que la production a chuté de 3,8 %. Les revenus totaux se sont chiffrés à 327,7 millions de dollars, en baisse par rapport à 423,5 millions de dollars. L'entreprise a atteint une étape importante en produisant les premières tonnes de développement sur son projet Blue Creek, en investissant 93,8 millions de dollars dans son développement pendant le troisième trimestre, portant le total des dépenses du projet à 612,4 millions de dollars.
Warrior Met Coal berichtete für das dritte Quartal 2024 einen Nettogewinn von 41,8 Millionen USD (0,80 USD pro verwässerter Aktie), ein Rückgang gegenüber 85,4 Millionen USD (1,64 USD pro verwässerter Aktie) im dritten Quartal 2023. Das Unternehmen erzielte ein bereinigtes EBITDA von 78,5 Millionen USD im Vergleich zu 145,8 Millionen USD im dritten Quartal 2023. Das Verkaufsvolumen sank um 17,5 % auf 1,9 Millionen Shorttonnen, während die Produktion um 3,8 % zurückging. Die Gesamteinnahmen betrugen 327,7 Millionen USD, ein Rückgang gegenüber 423,5 Millionen USD. Das Unternehmen erreichte einen Meilenstein, indem es die ersten Entwicklungstonnen in seinem Blue Creek-Projekt produzierte und im dritten Quartal 93,8 Millionen USD in dessen Entwicklung investierte, wodurch die Gesamtausgaben für das Projekt auf 612,4 Millionen USD stiegen.
- Produced first development tons at Blue Creek project on schedule and within budget
- Maintained strong liquidity position of $746.4 million
- Generated positive operating cash flow of $62.2 million
- Achieved net interest income of $7.3 million
- Net income decreased 51% YoY to $41.8 million
- Sales volume declined 17.5% to 1.9 million short tons
- Revenue decreased 22.6% to $327.7 million
- Cash cost of sales per short ton increased to $123.45 from $114.66
Insights
The Q3 2024 results reveal significant headwinds for Warrior Met Coal. Net income dropped to
The Blue Creek expansion remains a bright spot, with
Current market dynamics present significant challenges for steelmaking coal producers. Global steel demand weakness, Chinese steel export pressures and oversupply have pushed prices to three-year lows. Management's strategic decision to be selective with spot sales indicates market discipline but impacts near-term revenues.
The completion of key Blue Creek infrastructure components positions Warrior for future growth, with potential annual production increase of 4.8 million short tons once operational. This expansion could significantly enhance competitive positioning when market conditions improve, though current pricing environment warrants cautious outlook.
Achieved Net Income of
Generated Adjusted EBITDA of
Produced first development tons at Blue Creek within budget and on schedule
Warrior reported net income for the third quarter of 2024 of
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
in the continued development of Blue Creek, which brings the year-to-date project spend to$93.8 million and the total project spend to$246.4 million ; and$612.4 million -
Recorded
of cash provided by operating activities despite weaker demand in the global markets and a$62.2 million 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
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
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
Additional Financial Results
Total revenues were
Cost of sales for the third quarter of 2024 were
Selling, general and administrative expenses for the third quarter of 2024 were
Depreciation and depletion expenses for the third quarter of 2024 were
Income tax expense was
Cash Flow and Liquidity
The Company generated cash flows of
Net working capital, excluding cash, for the third quarter of 2024 decreased by
Cash flows used in financing activities for the third quarter of 2024 were
The Company’s total liquidity as of September 30, 2024 was
Capital Allocation
On October 25, 2024, our Board declared a regular quarterly cash dividend of
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) |
|
Capital expenditures for 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:
- 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
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
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
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 |
|||||||||||||||
(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 (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 |
|||||||||||||||
($ 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 |
|||||||||||
(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 |
|||||||||||||||
(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,
|
||||
|
(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, |
|
545 |
|
|
|
542 |
|
Preferred stock, |
|
— |
|
|
|
— |
|
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
Source: Warrior Met Coal, Inc.
FAQ
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