Warrior Met Coal, Inc. · NYSE:HCC
Warrior Met Coal — Q1 2018 Earnings Presentation
12 slides from Warrior Met Coal's earnings presentation, May 2, 2018
Slide 1: Warrior Met Coal First Quarter 2018 Results
Warrior Met Coal First Quarter 2018 Results May 2, 2018
Slide 2: Forward looking statements
W ar r ior Met Coal Page 1 Forward looking statements These slides contain, 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 Ac
Slide 3: 2018 Achievements
W ar r ior Met Coal Page 2 2018 Achievements 1 Successfully tapped capital markets for $125 million of 8% Senior Secured Notes due 2024 ✓ 2 Record operational and financial performance ✓ 3 On track to meet or exceed the Company’s annual guidance targets ✓ 4 Paid $350 million ($6.53 per share) in spe
Slide 4: Sales and Production in Q1 2018 vs. Q1 2017
W ar r ior Met Coal Page 3 Sales and Production in Q1 2018 vs. Q1 2017 Q1 2018 Q1 2017 Tons produced (in 000s Short tons 2,098 Tons produced (in 000s St) 1,614 (“St”)) Tons sold (in 000s St) 2,116 Tons sold (in 000s St) 1,127 Gross price realization (1) 99% Gross price realization (1) 84% Average ne
Slide 5: Strong Performance Across Key Metrics in Q1 2018
W ar r ior Met Coal Page 4 Strong Performance Across Key Metrics in Q1 2018 Sales Volume (St in 000s) Average Net Selling Price ($/St) Revenue ($ in millions) Q1 2017 vs. Q1 2018 Q1 2017 vs. Q1 2018 Q1 2017 vs. Q1 2018 +66% +88% -9% $214 $422 2,116 $254 $195 1,127 Q1 2017 Q1 2018 Q1 2017 Q1 2018 Q1
Slide 6: Leverage and Liquidity Analysis
W ar r ior Met Coal Page 5 Leverage and Liquidity Analysis Financial Metrics ($MM except ratios, as of and for the three months ended March 31, 2018) Leverage Adjusted EBITDA* $216.4 (1) Consolidated Net Debt $146.4 Net Leverage Ratio 0.68x Liquidity Cash and Cash Equivalents (2) $322.0 Asset-Based
Slide 7: Generated Significant Cash Flow with Strong Margins
W ar r ior Met Coal Page 6 Generated Significant Cash Flow with Strong Margins Free Cash Flow* ($ in millions) Adj. EBITDA Margin(1) 53% 52% 34% 36% 51% $180 $171 $160 $145 $140 Q1 2018 Achievements $120 Q1 Free Cash Flow* $100 of $171.2 million, $82 which is $109.7 $80 million higher than Q4 2017
Slide 8: Production Ramp Up Continues in 2018
W ar r ior Met Coal Page 7 Production Ramp Up Continues in 2018 (thousand short tons) Longwall 1 - - 3 - Q1’18 Achievements moves Q1’18 production 2,098 30% higher than 2,000 1,909 Q1’17 1,800 496 1,614 1,620 No longwall moves 1,600 517 1,573 during the current 1,400 480 quarter 454 400 1,200
Slide 9: Looking Forward: 2018 Full Year Guidance
W ar r ior Met Coal Page 8 Looking Forward: 2018 Full Year Guidance • On Track to Building Shareholder Value in 2018 • Coal sales of 6.8 – 7.3 million St • Coal production of 6.8 – 7.3 million St • Cash cost of sales (free-on-board port)* of $89 - $95 per St • Capital expenditures of $100 - $120 mil
Slide 10: Appendix
W ar r ior Met Coal Page 9 Appendix
Slide 11: Appendix
W ar r ior Met Coal Page 10 Appendix For the three months ended For the three months ended March 31, 2018 (Unaudited) March 31, 2017 (Unaudited) Short Tons Metric Tons Short Tons Metric Tons Tons sold (in 000s) 2,116 1,920 1,127 1,022 Tons produced (in 000s) 2,098 1,904 1,614 1,464 Gross price reali
Slide 12: Appendix: Generated Significant Cash Flow (Q1 2018)
W ar r ior Met Coal Page 11 Appendix: Generated Significant Cash Flow (Q1 2018) 700 ($ in millions) 2018 free cash flow* 600 generated of $171 million prior to senior secured notes issuance and quarterly dividend 500 400 -$4 -$5 $325 -$3 +$127 $322 300 +$27 -$34 -$23 +$179 +$2 +$12 +$8 200 100 $36 0