Achieved Net Income of $70.7 million, or $1.35
per diluted share
Generated Adjusted EBITDA of $115.9 million
Completed key Blue Creek milestones with first
development tons expected next quarter
Warrior Met Coal, Inc. (NYSE: HCC) (“Warrior” or the “Company”)
today announced results for the second 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 second quarter of 2024 of
$70.7 million, or $1.35 per diluted share, a decrease from net
income of $82.1 million, or $1.58 per diluted share, in the second
quarter of 2023. Adjusted net income per share for the second
quarter of 2024 was $1.35 per diluted share compared to adjusted
net income per share of $1.64 per diluted share in the second
quarter of 2023. The Company reported Adjusted EBITDA of $115.9
million in the second quarter of 2024 compared to Adjusted EBITDA
of $130.0 million in the second quarter of 2023.
Second Quarter Highlights
- Recorded an 18% increase in sales volumes despite weaker demand
in the global markets and a 13% increase in production volumes,
resulting in largest quarterly production in over three years
- Invested $84.1 million in the continued development of the
world-class Blue Creek growth project and $25.8 million in
sustaining capital expenditures, funded through $147.0 million of
cash flows from operations
- Completed major components for seam access at Blue Creek, which
includes the production slope, service shaft and ventilation shaft
and fan and allows for the initial development of the longwall
panel with the first continuous miner unit expected to begin in the
third quarter of 2024
- Re-affirmed outlook for 2024, with a non-material change to
interest expense
“Our ability to deliver a very strong second quarter performance
despite a soft global market reflects our continued success in
maximizing sales and production volumes and generating significant
cash flow from operations,” commented Walt Scheller, CEO of
Warrior. “We anticipate the benefits of our high-quality assets and
our ability to develop Blue Creek from cash from operations to
continue to drive value for stockholders regardless of market
factors.”
“Looking ahead, we believe the Company is well positioned to
capitalize on improving global demand if it materializes,
especially in India, in the second half of the year combined with a
potential improvement in steelmaking coal prices from expected
tightness in global supply driven by constraints of Australian
longwall moves, mine maintenance and recent mine fires,” Mr.
Scheller concluded.
Operating Results
Sales volume in the second quarter of 2024 was 2.1 million short
tons compared to 1.8 million short tons in the second quarter of
2023, representing an 18% increase. This 18% increase in sales
volume was driven by higher production from both Mine No. 4 and
Mine No. 7 operating at higher capacity levels in 2024 compared to
2023. We continued to transport more volume by rail to the port
during the second quarter of 2024 without any delays due to the
failure of a lock and dam system on the Tombigbee River that
occurred in January, which slightly increased our transportation
costs. The lock and dam system was repaired and returned to service
in late May.
The Company produced 2.2 million short tons of steelmaking coal
in the second quarter of 2024, resulting in the largest quarterly
production in over three years, compared to 1.9 million short tons
in the second quarter of 2023, representing a 13% increase.
Inventory levels increased slightly to 895 thousand short tons as
of June 30, 2024 from 892 thousand short tons as of March 31,
2024.
Additional Financial Results
Total revenues were $396.5 million for the second quarter of
2024, which compares to total revenues of $379.7 million in the
second quarter of 2023. The average net selling price of the
Company's steelmaking coal decreased 11% from $208.56 per short ton
in the second quarter of 2023 to $186.09 per short ton in the
second quarter of 2024. Our average gross selling price realization
was approximately 90% of the Platts Premium Low Vol FOB Australian
index price for the second quarter of 2024.
Cost of sales for the second quarter of 2024 were $261.3 million
compared to $230.5 million for the second quarter of 2023. Cash
cost of sales (free-on-board port) for the second quarter of 2024
were $259.7 million, or 67% of mining revenues, compared to $229.0
million, or 62% of mining revenues in the same period of 2023. Cash
cost of sales (free-on-board port) per short ton decreased to
$123.78 in the second quarter of 2024 from $128.70 in the second
quarter of 2023, driven primarily by lower steelmaking coal prices
and its effect on our variable cost structure, primarily for wages,
transportation and royalties and the increase in tons produced.
Selling, general and administrative expenses for the second
quarter of 2024 were $15.4 million, or 3.9% of total revenues and
were slightly higher than the same period last year of 3.5% due to
higher employee-related compensation costs.
Depreciation and depletion expenses for the second quarter of
2024 were $38.1 million, or 9.6% 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 and higher sales volumes.
Warrior achieved net interest income of $8.3 million during the
second quarter of 2024, which compares to net interest income in
the same period of last year of $6.2 million. Interest income
earned on our cash investments continues to exceed interest expense
on our outstanding notes and equipment leases.
Income tax expense was $8.5 million in the second quarter of
2024 on pre-tax income of $79.2 million primarily driven by an
income tax benefit for foreign-derived intangible income and
depletion expense. This compares to an income tax expense of $14.5
million on income of $96.6 million in the second quarter of
2023.
Cash Flow and Liquidity
The Company generated cash flows of $147.0 million from
operating activities in the second quarter of 2024, compared to
$124.5 million in the second quarter of 2023. Capital expenditures
and mine development for the second quarter of 2024 were $121.6
million compared to $147.4 million in the second quarter of 2023,
primarily reflecting the continued development of the Blue Creek
growth project. Free cash flows in the second quarter of 2024 were
$25.4 million compared to negative free cash flows of $22.8 million
in the second quarter of 2023.
Net working capital, excluding cash, for the second quarter of
2024 decreased by $28.7 million from the first quarter of 2024,
primarily reflecting lower trade accounts receivable due to the
timing of sales and lower steelmaking coal prices.
Cash flows used in financing activities for the second quarter
of 2024 were $10.2 million, primarily due to the payment of a
regular quarterly dividend of $5.6 million and principal repayments
of financing lease obligations of $4.6 million.
The Company’s total liquidity as of June 30, 2024 was $816.4
million, consisting of cash and cash equivalents of $709.0 million
and available liquidity under its ABL Facility of $107.4 million,
net of outstanding letters of credit of $8.7 million.
Capital Allocation
On July 26, 2024, our Board declared a regular quarterly cash
dividend of $0.08 per share, totaling approximately $4.2 million,
which will be paid on August 13, 2024, to stockholders of record as
of the close of business on August 6, 2024.
Progress at Blue Creek
During the second quarter, Warrior invested $84.1 million on the
continued development of the Blue Creek mine, which brings the
year-to-date project spend to approximately $152.6 million and the
total project spend to approximately $518.6 million. The Company
expects to spend $325 to $375 million in 2024 on the continued
development of the Blue Creek mine. As previously disclosed in
early 2023, the Company initiated important and highly beneficial
project scope changes that will require incremental capital
expenditures over the life of the project while lowering operating
costs, increasing flexibility to manage risks, and making better
use of multi-channel transportation methods. At the same time, the
Company effectively reset the original total baseline cost of the
project to include these scope changes and the impact of
inflationary cost increases ranging from 25 to 35 percent in both
operating and capital expenditures in relation to labor,
construction materials and certain equipment. There have been no
changes to the reset baseline total project cost since that initial
disclosure in 2023. The reset baseline total project cost ranges
from $995 million to $1.075 billion.
“During the second quarter, we accomplished several critical
milestones in the development of our world-class Blue Creek growth
project,” Scheller said. “We completed major components for seam
access, which includes the production slope, service shaft and
ventilation shaft and fan. The next major step is completing the
installation of the service cage and the slope belt. This will
allow us to begin development of the initial longwall panel with
the first continuous miner unit expected to begin in the third
quarter of 2024. We also made significant progress on the
preparation plant and the development of the rail and barge
loadouts. We remain focused on tight capital discipline ensuring
the project will be completed within budget and on time, including
the longwall startup in the second quarter of 2026.”
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.
Company Outlook
The Company re-affirmed its guidance for the full year 2024 with
a non-material change to interest expense as indicated below. 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:
- Three planned longwall moves remaining (two in Q3 and one 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 unit 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 second
quarter 2024 results today, August 1, 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 August 1, 2024 until 6:30 p.m. ET on August 8,
2024. The replay will be available by calling: 1-877-344-7529
(domestic) or 1-412-317-0088 (international) and entering passcode
8283685.
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, 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 create value for stockholders, as well as
statements regarding production, inflationary pressures, and 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
June 30,
For the six months ended June
30,
2024
2023
2024
2023
Revenues:
Sales
$
390,424
$
371,033
$
888,423
$
871,524
Other revenues
6,099
8,627
11,613
17,810
Total revenues
396,524
379,660
900,036
889,334
Costs and expenses:
Cost of sales (exclusive of items shown
separately below)
261,305
230,452
546,892
463,082
Cost of other revenues (exclusive of items
shown separately below)
10,673
11,510
20,638
22,948
Depreciation and depletion
38,150
30,550
78,173
67,763
Selling, general and administrative
15,392
13,172
34,050
27,688
Business interruption
100
3,537
302
7,754
Total costs and expenses
325,620
289,221
680,055
589,235
Operating income
70,904
90,439
219,982
300,099
Interest expense
(915
)
(5,452
)
(2,036
)
(12,895
)
Interest income
9,241
11,640
17,395
20,544
Other income
—
—
—
221
Income before income tax expense
79,230
96,627
235,341
307,969
Income tax expense
8,519
14,534
27,641
43,598
Net income
$
70,711
$
82,093
$
207,700
$
264,371
Basic and diluted net income per
share:
Net income per share—basic
$
1.35
$
1.58
3.98
5.09
Net income per share—diluted
$
1.35
$
1.58
3.97
5.09
Weighted average number of shares
outstanding—basic
52,321
52,010
52,242
51,927
Weighted average number of shares
outstanding—diluted
52,378
52,081
52,293
51,990
Dividends per share:
$
0.08
$
0.07
$
0.66
$
1.02
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
June 30,
For the six months ended June
30,
2024
2023
2024
2023
Tons sold
2,098
1,779
4,227
3,727
Tons produced
2,172
1,924
4,223
3,683
Average net selling price
$
186.09
$
208.56
$
210.18
$
233.84
Cash cost of sales (free-on-board port)
per short ton(2)
$
123.78
$
128.70
$
128.66
$
123.56
Cost of production %
61
%
59
%
61
%
58
%
Transportation and royalties %
39
%
41
%
39
%
42
%
(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
June 30,
For the six months ended June
30,
2024
2023
2024
2023
Cost of sales
$
261,305
$
230,452
$
546,892
$
463,082
Asset retirement obligation accretion
(703
)
(539
)
(1,405
)
(1,079
)
Stock compensation expense
(912
)
(948
)
(1,625
)
(1,482
)
Cash cost of sales (free-on-board
port)(2)
$
259,690
$
228,965
$
543,862
$
460,521
(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.
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
June 30,
For the six months ended June
30,
2024
2023
2024
2023
Net income
$
70,711
$
82,093
$
207,700
$
264,371
Interest income, net
(8,327
)
(6,188
)
(15,360
)
(7,649
)
Income tax expense
8,519
14,534
27,641
43,598
Depreciation and depletion
38,150
30,550
78,173
67,763
Asset retirement obligation accretion
1,298
990
2,595
1,896
Stock compensation expense
5,040
4,573
14,187
12,275
Other non-cash accretion
451
413
902
827
Mark-to-market gain on gas hedges
—
(522
)
—
(1,227
)
Business interruption
101
3,537
302
7,754
Other income
—
—
—
(221
)
Adjusted EBITDA(3)
$
115,943
$
129,980
$
316,140
$
389,387
Adjusted EBITDA margin(4)
29.2
%
34.2
%
35.1
%
43.8
%
(3) 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.
(4) Adjusted EBITDA margin is defined as
Adjusted EBITDA divided by total revenues.
RECONCILIATION OF ADJUSTED NET INCOME
TO AMOUNTS REPORTED UNDER U.S. GAAP:
(in thousands, except per share
amounts)
For the three months ended
June 30,
For the six months ended June
30,
2024
2023
2024
2023
Net income
$
70,711
$
82,093
$
207,700
$
264,371
Business interruption, net of tax
89
3,096
267
6,656
Other income, net of tax
—
—
—
(190
)
Adjusted net income(5)
$
70,800
$
85,189
$
207,967
$
270,837
Weighted average number of shares
outstanding—basic
52,321
52,010
52,242
51,927
Weighted average number of shares
outstanding—diluted
52,378
52,081
52,293
51,990
Adjusted net income per share—basic
$
1.35
$
1.64
$
3.98
$
5.22
Adjusted net income per share—diluted
$
1.35
$
1.64
$
3.98
$
5.21
(5) 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
June 30,
For the six months ended June
30,
2024
2023
2024
2023
OPERATING ACTIVITIES:
Net income
$
70,711
$
82,093
$
207,700
$
264,371
Non-cash adjustments to reconcile net
income to net cash provided by operating activities
48,747
45,870
102,521
120,968
Changes in operating assets and
liabilities:
Trade accounts receivable
30,690
1,098
(84,485
)
(55,706
)
Income tax receivable
—
—
7,833
—
Inventories
(8,245
)
(8,909
)
7,918
8,497
Prepaid expenses and other receivables
2,345
(22
)
(2,923
)
(3,162
)
Accounts payable
18,842
5,300
24,473
(3,163
)
Accrued expenses and other current
liabilities
(14,939
)
(4,273
)
(9,892
)
(22,305
)
Other
(1,176
)
3,353
(2,112
)
7,944
Net cash provided by operating
activities
146,975
124,510
251,033
317,444
INVESTING ACTIVITIES:
Purchases of property, plant and
equipment
(110,961
)
(136,116
)
(210,664
)
(204,295
)
Mine development costs
(10,658
)
(11,229
)
(12,645
)
(25,687
)
Acquisitions, net of cash acquired
—
(40
)
—
(2,421
)
Net cash used in investing activities
(121,619
)
(147,385
)
(223,309
)
(232,403
)
FINANCING ACTIVITIES:
Net cash used in financing activities
(10,191
)
(12,252
)
(56,898
)
(87,100
)
Net increase (decrease) in cash and cash
equivalents
15,165
(35,127
)
(29,174
)
(2,059
)
Cash and cash equivalents at beginning of
period
693,858
862,548
738,197
829,480
Cash and cash equivalents at end of
period
$
709,023
$
827,421
$
709,023
$
827,421
RECONCILIATION OF FREE CASH FLOW TO
AMOUNTS REPORTED UNDER U.S. GAAP:
(in thousands)
For the three months ended
June 30,
For the six months ended June
30,
2024
2023
2024
2023
Net cash provided by operating
activities
$
146,975
$
124,510
$
251,033
$
317,444
Purchases of property, plant and equipment
and mine development costs
(121,619
)
(147,345
)
(223,309
)
(229,982
)
Free cash flow(6)
$
25,356
$
(22,835
)
$
27,724
$
87,462
Free cash flow conversion(7)
21.9
%
(17.6
)%
8.8
%
22.5
%
(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.
CONDENSED BALANCE
SHEETS
(in thousands, except share
and per-share data)
June 30, 2024
December 31,
2023
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents
$
709,023
$
738,197
Short-term investments
9,270
9,030
Trade accounts receivable
182,710
98,225
Income tax receivable
—
7,833
Inventories, net
173,948
183,949
Prepaid expenses and other receivables
34,855
31,932
Total current assets
1,109,806
1,069,167
Mineral interests, net
76,174
80,442
Property, plant and equipment, net
1,348,348
1,179,609
Deferred income taxes
5,490
5,854
Other long-term assets
21,039
21,987
Total assets
$
2,560,857
$
2,357,059
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current liabilities:
Accounts payable
$
65,507
$
36,245
Accrued expenses
71,729
81,612
Short-term financing lease liabilities
12,645
11,463
Other current liabilities
24,456
18,350
Total current liabilities
174,337
147,670
Long-term debt
153,312
153,023
Asset retirement obligations
71,578
71,666
Long-term financing lease liabilities
4,967
8,756
Deferred income taxes
80,945
74,531
Other long-term liabilities
27,331
26,966
Total liabilities
512,470
482,612
Stockholders’ Equity:
Common stock, $0.01 par value,
(140,000,000 shares authorized as of June 30, 2024 and December 31,
2023; 54,532,565 issued and 52,310,724 outstanding as of June 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 June 30, 2024 and December 31, 2023)
(50,576
)
(50,576
)
Additional paid in capital
281,801
279,332
Retained earnings
1,816,617
1,645,148
Total stockholders’ equity
2,048,387
1,874,446
Total liabilities and stockholders’
equity
$
2,560,857
$
2,357,058
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240801348212/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
Warrior Met Coal (NYSE:HCC)
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