Delaware
|
001-38061
|
81-0706839
|
|
(State or other jurisdiction of incorporation or organization)
|
(Commission File Number)
|
(I.R.S. Employer Identification No.)
|
|
|
|
|
|
16243 Highway 216
|
|
|
|
Brookwood
|
Alabama
|
|
35444
|
(Address of Principal Executive Offices)
|
|
(Zip Code)
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
Common Stock, par value $.01 per share
|
HCC
|
New York Stock Exchange
|
Exhibit No.
|
|
Exhibit Description
|
|
|
|
99.1
|
|
|
Warrior Met Coal, Inc.
|
||
|
|
|
|
Date: July 31, 2019
|
By:
|
|
/s/ Dale W. Boyles
|
|
|
|
Dale W. Boyles
|
|
|
|
Chief Financial Officer
|
Coal sales
|
7.5 - 7.9 million short tons
|
Coal production
|
7.5 - 7.9 million short tons
|
Cash cost of sales (free-on-board port)
|
$89 - $95 per short ton
|
Capital expenditures
|
$100 - $120 million
|
Mine development costs
|
$18 - $22 million
|
Selling, general and administrative expenses
|
$32 - $36 million
|
Interest expense, net
|
$30 - $32 million
|
Noncash deferred income tax expense
|
20% - 23%
|
Cash tax rate
|
0%
|
•
|
Planned longwall moves (2 - Q3, and 1 - Q4)
|
•
|
HCC index pricing
|
•
|
Exclusion of other non-recurring costs
|
|
WARRIOR MET COAL, INC.
|
|
|
CONDENSED STATEMENTS OF OPERATIONS
|
|
|
($ in thousands, except per share)
|
|
|
(Unaudited)
|
|
For the three months ended June 30,
|
|
For the six months ended June 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Revenues:
|
|
|
|
|
|
|
|
||||||||
Sales
|
$
|
387,429
|
|
|
$
|
315,045
|
|
|
$
|
757,110
|
|
|
$
|
727,924
|
|
Other revenues
|
10,184
|
|
|
7,510
|
|
|
18,793
|
|
|
16,419
|
|
||||
Total revenues
|
397,613
|
|
|
322,555
|
|
|
775,903
|
|
|
744,343
|
|
||||
Costs and expenses:
|
|
|
|
|
|
|
|
||||||||
Cost of sales (exclusive of items shown separately below)
|
205,188
|
|
|
178,543
|
|
|
387,816
|
|
|
369,219
|
|
||||
Cost of other revenues (exclusive of items shown separately below)
|
8,019
|
|
|
7,338
|
|
|
15,764
|
|
|
15,122
|
|
||||
Depreciation and depletion
|
25,678
|
|
|
21,127
|
|
|
47,911
|
|
|
45,679
|
|
||||
Selling, general and administrative
|
10,783
|
|
|
13,465
|
|
|
19,688
|
|
|
21,699
|
|
||||
Transaction and other expenses
|
—
|
|
|
986
|
|
|
—
|
|
|
4,274
|
|
||||
Total costs and expenses
|
249,668
|
|
|
221,459
|
|
|
471,179
|
|
|
455,993
|
|
||||
Operating income
|
147,945
|
|
|
101,096
|
|
|
304,724
|
|
|
288,350
|
|
||||
Interest expense, net
|
(6,951
|
)
|
|
(9,784
|
)
|
|
(15,543
|
)
|
|
(18,344
|
)
|
||||
Loss on early extinguishment of debt
|
—
|
|
|
—
|
|
|
(9,756
|
)
|
|
—
|
|
||||
Other income
|
17,543
|
|
|
—
|
|
|
17,543
|
|
|
—
|
|
||||
Income before income tax expense
|
158,537
|
|
|
91,312
|
|
|
296,968
|
|
|
270,006
|
|
||||
Income tax expense
|
33,056
|
|
|
—
|
|
|
61,040
|
|
|
—
|
|
||||
Net income
|
$
|
125,481
|
|
|
$
|
91,312
|
|
|
$
|
235,928
|
|
|
$
|
270,006
|
|
Basic and diluted net income per share:
|
|
|
|
|
|
|
|
||||||||
Net income per share—basic
|
$
|
2.43
|
|
|
$
|
1.72
|
|
|
$
|
4.58
|
|
|
$
|
5.10
|
|
Net income per share—diluted
|
$
|
2.43
|
|
|
$
|
1.72
|
|
|
$
|
4.57
|
|
|
$
|
5.09
|
|
Weighted average number of shares outstanding—basic
|
51,553
|
|
|
53,053
|
|
|
51,532
|
|
|
52,976
|
|
||||
Weighted average number of shares outstanding—diluted
|
51,681
|
|
|
53,079
|
|
|
51,641
|
|
|
53,007
|
|
||||
Dividends per share:
|
$
|
4.46
|
|
|
$
|
6.58
|
|
|
$
|
4.51
|
|
|
$
|
6.63
|
|
|
WARRIOR MET COAL, INC.
|
|
|
QUARTERLY SUPPLEMENTAL FINANCIAL DATA AND RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
|
|
|
(Unaudited)
|
|
For the three months ended June 30,
|
|
For the six months ended June 30,
|
||||||||||||
(short tons in thousands)(1)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Tons sold
|
2,240
|
|
|
1,886
|
|
|
4,335
|
|
|
4,002
|
|
||||
Tons produced
|
2,195
|
|
|
1,929
|
|
|
4,494
|
|
|
4,027
|
|
||||
Gross price realization (2)
|
97
|
%
|
|
100
|
%
|
|
97
|
%
|
|
99
|
%
|
||||
Average net selling price
|
$
|
172.96
|
|
|
$
|
167.04
|
|
|
$
|
174.65
|
|
|
$
|
181.89
|
|
Cash cost of sales (free on board port) per short ton (3)
|
$
|
91.30
|
|
|
$
|
93.90
|
|
|
$
|
89.14
|
|
|
$
|
91.74
|
|
(in thousands)
|
For the three months ended June 30,
|
|
For the six months ended June 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Cost of sales
|
$
|
205,188
|
|
|
$
|
178,543
|
|
|
$
|
387,816
|
|
|
$
|
369,219
|
|
Asset retirement obligation
|
(373
|
)
|
|
(560
|
)
|
|
(746
|
)
|
|
(1,120
|
)
|
||||
Stock compensation expense
|
(308
|
)
|
|
(879
|
)
|
|
(627
|
)
|
|
(946
|
)
|
||||
Cash cost of sales (free-on-board port)(3)
|
$
|
204,507
|
|
|
$
|
177,104
|
|
|
$
|
386,443
|
|
|
$
|
367,153
|
|
|
WARRIOR MET COAL, INC.
|
|
|
QUARTERLY SUPPLEMENTAL FINANCIAL DATA AND RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (CONTINUED)
|
|
|
(Unaudited)
|
|
For the three months ended June 30,
|
|
For the six months ended June 30,
|
||||||||||||
(in thousands)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Net income
|
$
|
125,481
|
|
|
$
|
91,312
|
|
|
$
|
235,928
|
|
|
$
|
270,006
|
|
Interest expense, net
|
6,951
|
|
|
9,784
|
|
|
15,543
|
|
|
18,344
|
|
||||
Income tax expense
|
33,056
|
|
|
—
|
|
|
61,040
|
|
|
—
|
|
||||
Depreciation and depletion
|
25,678
|
|
|
21,127
|
|
|
47,911
|
|
|
45,679
|
|
||||
Asset retirement obligation
|
812
|
|
|
1,155
|
|
|
1,624
|
|
|
2,310
|
|
||||
Stock compensation expense
|
1,455
|
|
|
4,481
|
|
|
2,649
|
|
|
4,679
|
|
||||
Transaction and other expenses
|
—
|
|
|
986
|
|
|
—
|
|
|
4,274
|
|
||||
Loss on early extinguishment of debt
|
—
|
|
|
—
|
|
|
9,756
|
|
|
—
|
|
||||
Other income
|
(17,543
|
)
|
|
—
|
|
|
(17,543
|
)
|
|
$
|
—
|
|
|||
Adjusted EBITDA (4)
|
$
|
175,890
|
|
|
$
|
128,845
|
|
|
$
|
356,908
|
|
|
$
|
345,292
|
|
Adjusted EBITDA margin (5)
|
44.2
|
%
|
|
39.9
|
%
|
|
46.0
|
%
|
|
46.4
|
%
|
(in thousands, except per share amounts)
|
For the three months ended June 30,
|
|
For the six months ended June 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Net income
|
$
|
125,481
|
|
|
$
|
91,312
|
|
|
$
|
235,928
|
|
|
$
|
270,006
|
|
Incremental stock compensation expense
|
—
|
|
|
3,570
|
|
|
—
|
|
|
3,570
|
|
||||
Transaction and other expenses, net of tax
|
—
|
|
|
986
|
|
|
—
|
|
|
4,274
|
|
||||
Loss on early extinguishment of debt, net of tax
|
—
|
|
|
—
|
|
|
9,756
|
|
|
—
|
|
||||
Other income, net of tax
|
(13,885
|
)
|
|
—
|
|
|
(13,937
|
)
|
|
—
|
|
||||
Adjusted net income (6)
|
$
|
111,596
|
|
|
$
|
95,868
|
|
|
$
|
231,747
|
|
|
$
|
277,850
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted average number of basic shares outstanding
|
51,553
|
|
|
53,053
|
|
|
51,532
|
|
|
52,976
|
|
||||
Weighted average number of diluted shares outstanding
|
51,681
|
|
|
53,079
|
|
|
51,641
|
|
|
53,007
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Adjusted basic net income per share:
|
$
|
2.16
|
|
|
$
|
1.81
|
|
|
$
|
4.50
|
|
|
$
|
5.24
|
|
Adjusted diluted net income per share:
|
$
|
2.16
|
|
|
$
|
1.81
|
|
|
$
|
4.49
|
|
|
$
|
5.24
|
|
|
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,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
||||||||
Net income
|
$
|
125,481
|
|
|
$
|
91,312
|
|
|
$
|
235,928
|
|
|
$
|
270,006
|
|
Non-cash adjustments to reconcile net income to net cash provided by operating activities
|
61,230
|
|
|
27,521
|
|
|
123,590
|
|
|
54,064
|
|
||||
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
|
||||||||
Trade accounts receivable
|
21,894
|
|
|
22,379
|
|
|
(22,435
|
)
|
|
(12,200
|
)
|
||||
Income tax receivable
|
21,310
|
|
|
—
|
|
|
21,607
|
|
|
—
|
|
||||
Inventories
|
190
|
|
|
(7,174
|
)
|
|
(10,633
|
)
|
|
(5,390
|
)
|
||||
Prepaid expenses and other receivables
|
(1,657
|
)
|
|
941
|
|
|
8,510
|
|
|
12,834
|
|
||||
Accounts payable
|
(4,821
|
)
|
|
12,538
|
|
|
5,819
|
|
|
15,469
|
|
||||
Accrued expenses and other current liabilities
|
2,165
|
|
|
(12,671
|
)
|
|
(12,968
|
)
|
|
(3,723
|
)
|
||||
Other
|
5,638
|
|
|
(2,326
|
)
|
|
8,420
|
|
|
(4,803
|
)
|
||||
Net cash provided by operating activities
|
231,430
|
|
|
132,520
|
|
|
357,838
|
|
|
326,257
|
|
||||
INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
||||||||
Purchases of property, plant, and equipment, and other
|
(27,705
|
)
|
|
(32,877
|
)
|
|
(52,100
|
)
|
|
(55,419
|
)
|
||||
Mine development costs
|
(6,491
|
)
|
|
—
|
|
|
(12,069
|
)
|
|
—
|
|
||||
Proceeds from sale of property, plant and equipment
|
2,829
|
|
|
—
|
|
|
3,063
|
|
|
—
|
|
||||
Other
|
3,251
|
|
|
—
|
|
|
3,251
|
|
|
—
|
|
||||
Net cash used in investing activities
|
(28,116
|
)
|
|
(32,877
|
)
|
|
(57,855
|
)
|
|
(55,419
|
)
|
||||
FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
||||||||
Net cash used in financing activities
|
(238,911
|
)
|
|
(366,582
|
)
|
|
(386,243
|
)
|
|
(251,189
|
)
|
||||
Net increase (decrease) in cash and cash equivalents and restricted cash
|
(35,597
|
)
|
|
(266,939
|
)
|
|
(86,260
|
)
|
|
19,649
|
|
||||
Cash and cash equivalents and restricted cash at beginning of period
|
155,742
|
|
|
322,852
|
|
|
206,405
|
|
|
36,264
|
|
||||
Cash and cash equivalents and restricted cash at end of period
|
$
|
120,145
|
|
|
$
|
55,913
|
|
|
$
|
120,145
|
|
|
$
|
55,913
|
|
(in thousands)
|
For the three months ended June 30,
|
|
For the six months ended June 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Net cash provided by operating activities
|
$
|
231,430
|
|
|
$
|
132,520
|
|
|
$
|
357,838
|
|
|
$
|
326,257
|
|
Purchases of property, plant and equipment and mine development costs
|
(34,196
|
)
|
|
(32,877
|
)
|
|
(64,169
|
)
|
|
(55,419
|
)
|
||||
Free cash flow (7)
|
$
|
197,234
|
|
|
$
|
99,643
|
|
|
$
|
293,669
|
|
|
$
|
270,838
|
|
Free cash flow conversion (8)
|
112.1
|
%
|
|
77.3
|
%
|
|
82.3
|
%
|
|
78.4
|
%
|
|
WARRIOR MET COAL, INC.
|
|
|
CONDENSED BALANCE SHEETS
|
|
|
($ in thousands)
|
|
|
|
|
|
June 30,
2019 (Unaudited) |
|
December 31,
2018 |
||||
ASSETS
|
|
|
|
|
||||
Current assets:
|
|
|
|
|
||||
Cash and cash equivalents
|
|
$
|
119,318
|
|
|
$
|
205,577
|
|
Short-term investments
|
|
14,250
|
|
|
17,501
|
|
||
Trade accounts receivable
|
|
160,834
|
|
|
138,399
|
|
||
Income tax receivable
|
|
10,655
|
|
|
21,607
|
|
||
Inventories, net
|
|
69,234
|
|
|
56,719
|
|
||
Prepaid expenses and other receivables
|
|
26,485
|
|
|
29,366
|
|
||
Total current assets
|
|
400,776
|
|
|
469,169
|
|
||
Mineral interests, net
|
|
114,951
|
|
|
120,427
|
|
||
Property, plant and equipment, net
|
|
582,560
|
|
|
540,315
|
|
||
Deferred income taxes
|
|
161,826
|
|
|
222,780
|
|
||
Non-current income tax receivable
|
|
10,655
|
|
|
21,310
|
|
||
Other long-term assets
|
|
19,710
|
|
|
21,039
|
|
||
Total assets
|
|
$
|
1,290,478
|
|
|
$
|
1,395,040
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
|
||||
Current liabilities:
|
|
|
|
|
||||
Accounts payable
|
|
$
|
36,467
|
|
|
$
|
33,588
|
|
Accrued expenses
|
|
70,742
|
|
|
82,342
|
|
||
Short term financing lease liabilities
|
|
8,659
|
|
|
—
|
|
||
Other current liabilities
|
|
5,389
|
|
|
7,742
|
|
||
Current portion of long-term debt
|
|
—
|
|
|
760
|
|
||
Total current liabilities
|
|
121,257
|
|
|
124,432
|
|
||
Long-term debt
|
|
338,854
|
|
|
468,231
|
|
||
Asset retirement obligations
|
|
60,356
|
|
|
59,049
|
|
||
Long term financing lease liabilities
|
|
31,166
|
|
|
—
|
|
||
Other long-term liabilities
|
|
26,187
|
|
|
30,716
|
|
||
Total liabilities
|
|
577,820
|
|
|
682,428
|
|
||
Stockholders’ Equity:
|
|
|
|
|
||||
Common stock, $0.01 par value per share (Authorized -140,000,000 shares as of June 30, 2019 and December 31, 2018, 53,292,751 issued and 51,570,910 outstanding as of June 30, 2019 and 53,256,098 issued and 51,622,898 outstanding as of December 31, 2018)
|
|
533
|
|
|
533
|
|
||
Preferred stock, $0.01 par value per share (10,000,000 shares authorized, no shares issued and outstanding)
|
|
—
|
|
|
—
|
|
||
Treasury stock, at cost (1,721,841 and 1,633,200 shares as of June 30, 2019 and December 31, 2018)
|
|
(40,000
|
)
|
|
(38,030
|
)
|
||
Additional paid in capital
|
|
241,020
|
|
|
239,827
|
|
||
Retained earnings
|
|
511,105
|
|
|
510,282
|
|
||
Total stockholders’ equity
|
|
712,658
|
|
|
712,612
|
|
||
Total liabilities and stockholders’ equity
|
|
$
|
1,290,478
|
|
|
$
|
1,395,040
|
|