Cash Flow Continued to be Positive in Fourth
Quarter
Strong Balance Sheet Drives Ongoing Capital
Investments to Position Company for Long Term Success
Warrior Met Coal, Inc. (NYSE:HCC) (“Warrior” or the “Company”)
today announced results for the fourth quarter and full-year 2020.
Warrior is the leading dedicated U.S. based producer and exporter
of high quality metallurgical (“met”) coal for the global steel
industry.
Warrior reported a fourth quarter 2020 net loss of $33.7
million, or $0.66 per diluted share, compared to net income of
$20.8 million, or $0.41 per diluted share, in the fourth quarter of
2019. Adjusted net loss for the fourth quarter of 2020 was $0.63
per diluted share compared to adjusted net income of $0.32 per
diluted share in the fourth quarter of 2019. The Company reported
Adjusted EBITDA of $9.2 million in the fourth quarter of 2020,
compared to Adjusted EBITDA of $45.0 million in the fourth quarter
of 2019.
“Despite the ongoing impact of COVID-19 on met coal demand and
pricing worldwide, we were pleased to be cash flow positive again
in the fourth quarter and nearly breakeven for the year,” commented
Walt Scheller, CEO of Warrior. “We are carefully managing operating
costs to address the significant short-term headwinds. At the same
time, we are purposefully making capital investments in our mining
operations that will benefit the Company into the future. We are
strongly capitalized and well-positioned to restart our growth
trajectory when the global economy returns to higher steel
production, met coal demand and pricing.”
Warrior reported full year 2020 net loss of $35.8 million and
adjusted net loss of $34.8 million, or net loss of $0.70 per
diluted share and adjusted net loss of $0.68 per diluted share,
compared to net income of $301.7 million and adjusted net income of
$288.6 million, or net income of $5.86 per diluted share and
adjusted net income of $5.61 per diluted share, in 2019. The
Company reported Adjusted EBITDA of $108.3 million for the full
year 2020 compared to $485.7 million in 2019.
Operating Results
The Company produced 1.8 million short tons of met coal in the
fourth quarter of 2020 compared to 1.8 million short tons in the
fourth quarter of 2019. For the full year of 2020, the Company
produced 7.9 million short tons, or a decrease of 7.2% compared to
2019. Sales volume in the fourth quarter of 2020 was 2.2 million
short tons compared to 1.7 million short tons in the fourth quarter
of 2019. Sales volumes for the full year 2020 were 7.4 million
short tons, or a decrease of 7.0% compared to 2019. Inventory
levels rose to 998 thousand short tons at the end of December 31,
2020 from the 749 thousand short tons at the end of 2019.
Additional Financial Results
Total revenues were $212.3 million for the fourth quarter of
2020, including $206.3 million in mining revenues, which consisted
of met coal sales of 2.2 million short tons at an average net
selling price of $93.54 per short ton, net of demurrage and other
charges. This compares to total revenues of $204.9 million in the
fourth quarter of 2019. During the quarter, global met coal markets
continued to be weak in response to slow steel demand and other
macroeconomic issues in the global economy. The average net selling
price of the Company's met coal declined from $119.67 per short ton
in the fourth quarter of 2019 to $93.54 per short ton in the fourth
quarter of 2020. Despite a pullback in met coal prices, the Company
sold its met coal in the fourth quarter of 2020 at 102% of the
quarterly Australian premium low-volatility hard coking coal
(“HCC”) Platts Premium LV FOB Australian Index (the "Platts Index”)
price.
Cost of sales for the fourth quarter of 2020 was $191.5 million
compared to $142.7 million for the fourth quarter of 2019. Cash
cost of sales (including mining, transportation and royalty costs)
for the fourth quarter of 2020 were $190.4 million, or 92.3% of
mining revenues, compared to $141.9 million, or 71.7% of mining
revenues in the same period of 2019. Cash cost of sales
(free-on-board port) per short ton increased slightly to $86.37 in
the fourth quarter of 2020 from $85.74 in the fourth quarter of
2019. The full year 2020 cash cost of sales per short ton was
$83.74, which represented our lowest annual cash cost per short ton
since going public. This reflects our low and variable cost
structure and a focus on cost control during periods of depressed
met coal prices.
Selling, general and administrative expenses for the fourth
quarter of 2020 were $7.8 million, or 3.7% of total revenues.
Depreciation and depletion costs for the fourth quarter of 2020
were $39.3 million, or 18.5% of total revenues. Warrior incurred
net interest expense of $8.5 million during the fourth quarter of
2020. Income tax benefit was $10.8 million in the fourth quarter of
2020 due to a loss before income taxes of $44.5 million and
additional marginal gas well credits.
Cash Flow and Liquidity
The Company generated positive cash flows from operating
activities in the fourth quarter of 2020 of $30.5 million, despite
a low met coal pricing environment, compared to $24.5 million in
the fourth quarter of 2019. Capital expenditures and mine
development costs for the fourth quarter of 2020 were $29.3
million, resulting in positive free cash flow of $1.2 million. Cash
flows used in financing activities for the fourth quarter of 2020
were $5.9 million, primarily due to payments of capital lease
obligations of $3.3 million, and the payment of dividends of $2.6
million.
The Company generated $112.6 million of cash flows from
operating activities for the full year 2020 compared to $532.8
million in 2019. Capital expenditures and mine development costs
for the full year 2020 were $114.6 million. Cash flows provided by
financing activities for the full year 2020 were $14.1 million,
primarily due to a net $40.0 million of borrowings under the ABL
Facility. This was offset by payments of dividends of $10.4 million
and payments on capital lease obligations of $14.2 million.
Net working capital, excluding cash, for the fourth quarter of
2020 decreased by $20.0 million from the third quarter of 2020,
primarily reflecting a decrease in inventory due to higher sales
volume. Net working capital, excluding cash, for the full year 2020
decreased by $19.0 million from the prior year, primarily
reflecting lower accounts receivable, the collection of an income
tax refund partially offset by an increase in inventories and
prepaid expenses and other receivables.
The Company’s total liquidity as of December 31, 2020 was $243.5
million, consisting of cash and cash equivalents of $211.9 million
and available liquidity under its ABL Facility of $31.6 million,
net of borrowings of $40.0 million and outstanding letters of
credit of $9.4 million.
Capital Allocation
On February 18, 2021, the board of directors declared a regular
quarterly cash dividend of $0.05 per share, totaling approximately
$2.6 million, which will be paid on March 8, 2021 to stockholders
of record as of the close of business on March 1, 2021.
Company Outlook
Due to ongoing uncertainty related to the COVID-19 pandemic, the
Chinese ban on Australian coal and other potentially disruptive
factors, Warrior will not be providing full year 2021 guidance at
this time. We expect to return to providing guidance once there is
further clarity on these issues. We continue to evaluate the impact
of COVID-19 and these other potentially disruptive factors on our
business, although we believe that it is premature to speculate on
when the economies of the countries in which our customers are
located will reopen on a sustained basis and lead to a return of
normalized demand for met coal.
We continue to appropriately adjust our operational needs,
including managing expenses, capital expenditures, working capital,
cash flows and liquidity. We have delayed the development of the
Blue Creek project until at least the summer of 2021. This decision
was not based on changes in the perceived value of the project, but
rather on our short-term focus of preserving cash and liquidity.
Our Stock Repurchase Program also remains temporarily
suspended.
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 2020 results today, February 24, 2020, 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 February 24, 2020 until 6:30 p.m. ET
on March 5, 2020. The replay will be available by calling:
1-877-344-7529 (domestic) or 1-412-317-0088 (international) and
entering passcode 10150383.
About Warrior
Warrior is a U.S.-based, environmentally and socially minded
supplier to the global steel industry. It is dedicated entirely to
mining non-thermal met coal used as a critical component of steel
production by metal manufacturers in Europe, South America and
Asia. Warrior is a large-scale, low-cost producer and exporter of
premium met coal, also known as hard-coking coal (HCC), operating
highly efficient longwall operations in its underground mines based
in Alabama. The HCC that Warrior produces from the Blue Creek coal
seam contains very low sulfur, has strong coking properties and is
of a similar quality to coal referred to as the premium HCC
produced in Australia. The premium nature of Warrior’s HCC makes it
ideally suited as a base feed coal for steel makers and results in
price realizations near the Platts Index price. For more
information, please visit www.warriormetcoal.com.
Forward-Looking Statements
This press release contains, and the Company’s officers and
representatives may from time to time make, forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933, as amended and Section 21E of the Securities Exchange Act
of 1934, as amended. All statements, other than statements of
historical facts, included in this press release that address
activities, events or developments that the Company expects,
believes or anticipates will or may occur in the future are
forward-looking statements, including statements regarding 2020
guidance, the impact of COVID-19 on its business and that of its
customers, sales and production growth, ability to maintain cost
structure, demand, the future direction of prices, expected capital
expenditures, future effective income tax rates and payment of cash
taxes, if any. The words “believe,” “expect,” “anticipate,” “plan,”
“intend,” “estimate,” “project,” “target,” “foresee,” “should,”
“would,” “could,” “potential,” or “outlook,” “guidance” or other
similar expressions are intended to identify forward-looking
statements. However, the absence of these words does not mean that
the statements are not forward-looking. These forward-looking
statements represent management’s good faith expectations,
projections, guidance or beliefs concerning future events, and it
is possible that the results described in this press release will
not be achieved. These forward-looking statements are subject to
risks, uncertainties and other factors, many of which are outside
of the Company’s control, that could cause actual results to differ
materially from the results discussed in the forward-looking
statements, including, without limitation, fluctuations or changes
in the pricing or demand for the Company’s coal (or met coal
generally) by the global steel industry; the impact of COVID-19 on
its business and that of its customers, including the risk of a
decline in demand for the Company's met coal due to the impact of
COVID-19 on steel manufacturers, the inability of the Company to
effectively operate its mines and the resulting decrease in
production, the inability of the Company to ship its products to
customers in the case of a partial or complete shut-down of the
Port of Mobile; federal and state tax legislation; changes in
interpretation or assumptions and/or updated regulatory guidance
regarding the Tax Cuts and Jobs Act of 2017; legislation and
regulations relating to the Clean Air Act and other environmental
initiatives; regulatory requirements associated with federal, state
and local regulatory agencies, and such agencies’ authority to
order temporary or permanent closure of the Company’s mines;
operational, logistical, geological, permit, license, labor and
weather-related factors, including equipment, permitting, site
access, operational risks and new technologies related to mining;
the timing and impact of planned longwall moves; the Company’s
obligations surrounding reclamation and mine closure; inaccuracies
in the Company’s estimates of its met coal reserves; any
projections or estimates regarding Blue Creek, including the
expected returns from this project, if any, and the ability of Blue
Creek to enhance the Company's portfolio of assets, the Company's
expectations regarding its future tax rate as well as its ability
to effectively utilize its NOLs to reduce or eliminate its cash
taxes; the Company's ability to develop Blue Creek; the Company’s
ability to develop or acquire met coal reserves in an economically
feasible manner; significant cost increases and fluctuations, and
delay in the delivery of raw materials, mining equipment and
purchased components; competition and foreign currency
fluctuations; fluctuations in the amount of cash the Company
generates from operations, including cash necessary to pay any
special or quarterly dividend; the Company’s ability to comply with
covenants in its ABL Facility or indenture relating to its senior
secured notes; integration of businesses that the Company may
acquire in the future; adequate liquidity and the cost,
availability and access to capital and financial markets; failure
to obtain or renew surety bonds on acceptable terms, which could
affect the Company’s ability to secure reclamation and coal lease
obligations; costs associated with litigation, including claims not
yet asserted; and other factors described in the Company’s Form
10-K for the year ended December 31, 2020 and other reports filed
from time to time with the Securities and Exchange Commission (the
“SEC”), which could cause the Company’s actual results to differ
materially from those contained in any forward-looking statement.
The Company’s filings with the SEC are available on its website at
www.warriormetcoal.com and on the SEC's website at www.sec.gov.
Any forward-looking statement speaks only as of the date on
which it is made, and, except as required by law, the Company does
not undertake any obligation to update or revise any
forward-looking statement, whether as a result of new information,
future events or otherwise. New factors emerge from time to time,
and it is not possible for the Company to predict all such
factors.
WARRIOR MET COAL, INC.
CONDENSED STATEMENTS OF
OPERATIONS
($ in thousands, except per
share)
For the three months ended
December 31,
For the twelve months ended
December 31,
2020
2019
2020
2019
Revenues:
Sales
$
206,261
$
198,048
$
761,871
$
1,235,998
Other revenues
5,992
6,853
20,867
32,311
Total revenues
212,253
204,901
782,738
1,268,309
Costs and expenses:
Cost of sales (exclusive of items shown
separately below)
191,509
142,707
625,170
720,745
Cost of other revenues (exclusive of items
shown separately below)
11,469
6,481
33,736
29,828
Depreciation and depletion
39,279
23,678
118,092
97,330
Selling, general and administrative
7,774
7,964
32,879
37,014
Total costs and expenses
250,031
180,830
809,877
884,917
Operating (loss) income
(37,778
)
24,071
(27,139
)
383,392
Interest expense, net
(8,463
)
(6,542
)
(32,310
)
(29,335
)
Loss on early extinguishment of debt
—
—
—
(9,756
)
Other income
1,722
—
3,544
22,815
(Loss) income before income tax (benefit)
expense
(44,519
)
17,529
(55,905
)
367,116
Income tax (benefit) expense
(10,808
)
(3,222
)
(20,144
)
65,417
Net (loss) income
$
(33,711
)
$
20,751
$
(35,761
)
$
301,699
Basic and diluted net (loss) income per
share:
Net (loss) income per share—basic
$
(0.66
)
$
0.41
$
(0.70
)
$
5.87
Net (loss) income per share—diluted
$
(0.66
)
$
0.41
$
(0.70
)
$
5.86
Weighted average number of shares
outstanding—basic
51,190
51,051
51,168
51,363
Weighted average number of shares
outstanding—diluted
51,190
51,201
51,168
51,493
Dividends per share:
$
0.05
$
0.05
$
0.20
$
4.61
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)
2020
2019
2020
2019
Tons sold
2,205
1,655
7,424
7,980
Tons produced
1,760
1,813
7,862
8,470
Gross price realization (2)
102
%
97
%
96
%
98
%
Average net selling price
$
93.54
$
119.67
$
102.62
$
154.89
Cash cost of sales (free on board port)
per short ton (3)
$
86.37
$
85.74
$
83.74
$
89.95
(1) 1 short ton is equivalent to 0.907185
metric tons.
(2) For the three and twelve months ended
December 31, 2020 and 2019, our gross price realization represents
a volume weighted-average calculation of our daily realized price
per ton based on gross sales, which excludes demurrage and other
charges, as a percentage of the Platts Index.
RECONCILIATION OF CASH COST OF SALES
(FREE-ON-BOARD PORT) TO COST OF SALES REPORTED UNDER U.S.
GAAP:
(in thousands)
For the three months ended
December 31,
For the twelve months ended
December 31,
2020
2019
2020
2019
Cost of sales
191,509
142,707
625,170
720,745
Asset retirement obligation accretion and
valuation adjustments
(596
)
(399
)
(1,702
)
(1,519
)
Stock compensation expense
(477
)
(405
)
(1,789
)
(1,405
)
Cash cost of sales (free-on-board
port)(3)
$
190,436
$
141,903
$
621,679
$
717,821
(3) Cash cost of sales (free-on-board
port) is based on reported cost of sales and includes items such as
freight, royalties, labor, fuel and other similar production and
sales cost items, and may be adjusted for other items that,
pursuant to GAAP, are classified in the Condensed Statements of
Operations as costs other than cost of sales, but relate directly
to the costs incurred to produce met coal. Our cash cost of sales
per short ton is calculated as cash cost of sales divided by the
short tons sold. Cash cost of sales per short ton is a non-GAAP
financial measure which is not calculated in conformity with U.S.
GAAP and should be considered supplemental to, and not as a
substitute or superior to financial measures calculated in
conformity with GAAP. We believe cash cost of sales per ton is a
useful measure of performance and we believe it aids some investors
and analysts in comparing us against other companies to help
analyze our current and future potential performance. Cash cost of
sales per ton may not be comparable to similarly titled measures
used by other companies.
WARRIOR MET COAL, INC.
QUARTERLY SUPPLEMENTAL
FINANCIAL DATA AND RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(CONTINUED)
RECONCILIATION OF ADJUSTED EBITDA TO
AMOUNTS REPORTED UNDER U.S. GAAP:
For the three months ended
December 31,
For the twelve months ended
December 31,
(in thousands)
2020
2019
2020
2019
Net (loss) income
$(33,711
)
$
20,751
$
(35,761
)
$
301,699
Interest expense, net
8,463
6,542
32,310
29,335
Income tax (benefit) expense
(10,808
)
(3,222
)
(20,144
)
65,417
Depreciation and depletion
39,279
23,678
118,092
97,330
Asset retirement obligation accretion and
valuation adjustments
433
(10,327
)
2,631
(7,891
)
Stock compensation expense
1,968
1,602
7,602
5,820
Other non-cash accretion and valuation
adjustments
4,955
5,970
6,014
7,042
Loss on early extinguishment of debt
—
—
—
9,756
Other income and expenses
(1,429
)
—
(2,468
)
(22,815
)
Adjusted EBITDA (4)
$
9,150
$
44,994
$
108,276
$
485,693
Adjusted EBITDA margin (5)
4.3
%
22.0
%
13.8
%
38.3
%
(4) Adjusted EBITDA is defined as net
(loss) income before net interest expense, income tax (benefit)
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, loss on early extinguishment of debt and other income
and expenses. 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
(loss) income, (loss) 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.
RECONCILIATION OF ADJUSTED NET INCOME
(LOSS) TO AMOUNTS REPORTED UNDER U.S. GAAP:
(in thousands, except per share
amounts)
For the three months ended
December 31,
For the twelve months ended
December 31,
2020
2019
2020
2019
Net (loss) income
$
(33,711
)
$
20,751
$
(35,761
)
$
301,699
Asset retirement obligation valuation
adjustments, net of tax
(238
)
(9,089
)
(238
)
(9,089
)
Other non-cash valuation adjustments, net
of tax
2,944
4,613
2,944
4,613
Loss on early extinguishment of debt, net
of tax
—
—
—
9,756
Other income and expenses, net of tax
(1,026
)
—
(1,772
)
(18,331
)
Adjusted net (loss) income(6)
$
(32,031
)
$
16,275
$
(34,827
)
$
288,648
Weighted average number of basic shares
outstanding
51,190
51,051
51,168
51,363
Weighted average number of diluted shares
outstanding
51,190
51,201
51,168
51,493
Adjusted basic net (loss) income per
share:
$
(0.63
)
$
0.32
$
(0.68
)
$
5.62
Adjusted diluted net (loss) income per
share:
$
(0.63
)
$
0.32
$
(0.68
)
$
5.61
(6) Adjusted net (loss) income is defined
as net (loss) income net of asset retirement obligation valuation
adjustment, other non-cash valuation adjustments, loss on early
extinguishment of debt and other income and expenses, net of tax
(based on each respective period's effective tax rate). Adjusted
net (loss) income is not a measure of financial performance in
accordance with GAAP, and we believe items excluded from adjusted
net (loss) income are significant to the reader in understanding
and assessing our results of operations. Therefore, adjusted net
(loss) income should not be considered in isolation, nor as an
alternative to net (loss) income under GAAP. We believe adjusted
net (loss) 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 (loss) income may not be comparable to
similarly titled measures used by other companies.
WARRIOR MET COAL, INC.
CONDENSED STATEMENTS OF CASH
FLOWS
($ in thousands)
For the three months ended
December 31,
For the twelve months ended
December 31,
2020
2019
2020
2019
OPERATING ACTIVITIES:
Net (loss) income
$
(33,711
)
$
20,751
$
(35,761
)
$
301,699
Non-cash adjustments to reconcile net
(loss) income to net cash provided by operating activities
31,294
15,220
109,796
174,859
Changes in operating assets and
liabilities:
Trade accounts receivable
(1,881
)
9,774
16,173
38,928
Income tax receivable
—
375
24,274
21,795
Inventories
30,422
(10,203
)
(13,465
)
(30,491
)
Prepaid expenses and other receivables
(13,468
)
(3,216
)
(19,374
)
3,864
Accounts payable
4,192
(5,340
)
15,361
13,409
Accrued expenses and other current
liabilities
763
(17,962
)
(3,936
)
(17,317
)
Other
12,862
15,150
19,558
26,068
Net cash provided by operating
activities
30,473
24,549
112,626
532,814
INVESTING ACTIVITIES:
Purchases of property, plant, and
equipment, and other
(15,429
)
(28,912
)
(87,488
)
(107,278
)
Mine development costs
(13,836
)
(4,994
)
(27,093
)
(23,392
)
Proceeds from sale of property, plant and
equipment and other
159
3
159
3,127
Other
—
—
6,233
(6,670
)
Net cash used in investing activities
(29,106
)
(33,903
)
(108,189
)
(134,213
)
FINANCING ACTIVITIES:
Net cash (used in) provided by financing
activities
(5,864
)
(6,766
)
14,096
(411,623
)
Net (decrease) increase in cash and cash
equivalents and restricted cash
(4,497
)
(16,120
)
18,533
(13,022
)
Cash and cash equivalents and restricted
cash at beginning of period
216,413
209,503
193,383
206,405
Cash and cash equivalents and restricted
cash at end of period
$
211,916
$
193,383
$
211,916
$
193,383
RECONCILIATION OF FREE CASH FLOW TO
AMOUNTS REPORTED UNDER U.S. GAAP:
(in thousands)
For the three months ended
December 31,
For the twelve months ended
December 31,
2020
2019
2020
2019
Net cash provided by operating
activities
$
30,473
$
24,549
$
112,626
$
532,814
Purchases of property, plant and equipment
and mine development costs
(29,265
)
(33,906
)
(114,581
)
(130,670
)
Free cash flow (7)
$
1,208
$
(9,357
)
$
(1,955
)
$
402,144
Free cash flow conversion (8)
13.2
%
(20.8
)%
(1.8
)%
82.8
%
(7) Free cash flow is defined as net cash
provided by operating activities less purchases of property, plant
and equipment and mine development costs. Free cash flow is not a
measure of financial performance in accordance with GAAP, and we
believe items excluded from net cash provided by operating
activities are significant to the reader in understanding and
assessing our results of operations. Therefore, free cash flow
should not be considered in isolation, nor as an alternative to net
cash provided by operating activities under GAAP. We believe free
cash flow is a useful measure of performance and we believe it aids
some investors and analysts in comparing us against other companies
to help analyze our current and future potential performance. Free
cash flow may not be comparable to similarly titled measures used
by other companies.
(8) Free cash flow conversion is defined
as free cash flow divided by Adjusted EBITDA.
WARRIOR MET COAL, INC.
CONDENSED BALANCE
SHEETS
($ in thousands)
December 31,
2020
December 31,
2019
ASSETS
Current assets:
Cash and cash equivalents
$
211,916
$
193,383
Short-term investments
8,504
14,675
Trade accounts receivable
83,298
99,471
Income tax receivable
—
12,925
Inventories, net
118,713
97,901
Prepaid expenses and other receivables
45,052
25,691
Total current assets
467,483
444,046
Mineral interests, net
100,855
110,130
Property, plant and equipment, net
637,108
606,200
Non-current income tax receivable
—
11,349
Deferred income taxes
174,372
154,297
Other long-term assets
14,118
18,242
Total assets
$
1,393,936
$
1,344,264
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current liabilities:
Accounts payable
$
59,110
$
46,436
Accrued expenses
86,108
65,755
Short term financing lease liabilities
14,385
10,146
Other current liabilities
10,715
6,615
Total current liabilities
170,318
128,952
Long-term debt
379,908
339,189
Asset retirement obligations
57,553
53,583
Long term financing lease liabilities
24,091
25,528
Other long-term liabilities
36,825
31,430
Total liabilities
668,695
578,682
Stockholders’ Equity:
Common stock, $0.01 par value per share
(Authorized -140,000,000 shares, 53,408,040 issued and 51,186,199
outstanding as of December 31, 2020 and 53,293,449 issued and
51,071,608 outstanding as of December 31, 2019)
534
533
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 December 31, 2020 and December 31, 2019)
(50,576
)
(50,576
)
Additional paid in capital
249,746
243,932
Retained earnings
525,537
571,693
Total stockholders’ equity
725,241
765,582
Total liabilities and stockholders’
equity
$
1,393,936
$
1,344,264
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210224005845/en/
For Investors: Dale W. Boyles, 205-554-6129
dale.boyles@warriormetcoal.com
For Media: D'Andre Wright, 205-554-6131
dandre.wright@warriormetcoal.com
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