Warrior Met Coal, Inc. · NYSE:HCC
Warrior Met Coal — Q2 2018 Earnings Presentation
16 slides from Warrior Met Coal's earnings presentation, Aug 1, 2018
Slide 1: Second Quarter 2018 Results
Warrior Met Coal Second Quarter 2018 Results August 1, 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 Strong operational and financial performance ✓ 3 Raised the Company’s 2018 guidance targets ✓ 4 Paid $350 million ($6.53 per share) in special dividends to shar
Slide 4: Sales and Production in Q2 2018 vs. Q2 2017
W ar r ior Met Coal Page 3 Sales and Production in Q2 2018 vs. Q2 2017 Q2 2018 Q2 2017 Tons produced (in 000s Short tons 1,929 Tons produced (in 000s St) 1,909 (“St”)) Tons sold (in 000s St) 1,886 Tons sold (in 000s St) 1,942 Gross price realization (1) 100% Gross price realization (1) 105% Average
Slide 5: Sales and Production in 2018 vs. 2017
W ar r ior Met Coal Page 4 Sales and Production in 2018 vs. 2017 2018 2017 Tons produced (in 000s Short tons Tons produced (in 000s St) 3,522 4,027 (“St”)) Tons sold (in 000s St) 4,002 Tons sold (in 000s St) 3,069 Gross price realization (1) 99% Gross price realization (1) 95% Average net selling pr
Slide 6: Strong Performance Across Key Metrics in Q2 2018
W ar r ior Met Coal Page 5 Strong Performance Across Key Metrics in Q2 2018 Sales Volume (St in 000s) Average Net Selling Price ($/St) Revenue ($ in millions) Q2 2017 vs. Q2 2018 Q2 2017 vs. Q2 2018 Q2 2017 vs. Q2 2018 -11% -3% -8% $363 1,942 $181 1,886 $167 $323 Q2 2017 Q2 2018 Q2 2017 Q2 2018 Q2 2
Slide 7: Strong Performance Across Key Metrics in 2018
W ar r ior Met Coal Page 6 Strong Performance Across Key Metrics in 2018 Sales Volume (St in 000s) Average Net Selling Price ($/St) Revenue ($ in millions) 2017 vs. 2018 2017 vs. 2018 2017 vs. 2018 +21% +30% -6% $193 $744 $617 4,002 3,069 $182 2017 2018 2017 2018 2017 2018 Adjusted EBITDA* ($ in mil
Slide 8: Leverage and Liquidity Analysis
W ar r ior Met Coal Page 7 Leverage and Liquidity Analysis Financial Metrics ($MM except ratios, as of and for the trailing twelve months ended June 30, 2018) Leverage Adjusted EBITDA*(1) $538.9 (2) Consolidated Net Debt* $413.1 Net Leverage Ratio* 0.77x Liquidity Cash and Cash Equivalents (3) $55.1
Slide 9: Generated Significant Cash Flow with Strong Margins
W ar r ior Met Coal Page 8 Generated Significant Cash Flow with Strong Margins Free Cash Flow* ($ in millions) Adj. EBITDA Margin(1) 52% 34% 36% 51% 40% $180 $171 $160 $145 $140 Q2 2018 Achievements $120 $100 Q2 Free Cash Flow* $100 of $99.6 million, net $82 of purchases of PPE $80 of $32.9 millio
Slide 10: Production Ramp Up Continues in 2018
W ar r ior Met Coal Page 9 Production Ramp Up Continues in 2018 (thousand short tons) Longwall - - 3 - - Q2’18 Achievements moves Q2 2018 2,000 1,909 2,098 1,929 production consistent with Q1 1,800 496 2018 1,620 1,600 517 1,573 596 Q2 2018 included a 1,400 scheduled week of 480 400 Mine 7 1,200
Slide 11: Looking Forward: 2018 Revised Full Year Guidance
W ar r ior Met Coal Page 10 Looking Forward: 2018 Revised Full Year Guidance • On Track to Building Shareholder Value in 2018 • Coal sales of 7.1 – 7.5 million St • Coal production of 7.1 – 7.5 million St • Cash cost of sales (free-on-board port)* of $89 - $95 per St • Capital expenditures of $100 -
Slide 12: Appendix
W ar r ior Met Coal Page 11 Appendix
Slide 13: Appendix
W ar r ior Met Coal Page 12 Appendix For the three months ended For the three months ended June 30, 2018 (Unaudited) June 30, 2017 (Unaudited) Short Tons Metric Tons Short Tons Metric Tons Tons sold (in 000s) 1,886 1,711 1,942 1,762 Tons produced (in 000s) 1,929 1,750 1,909 1,732 Gross price realiza
Slide 14: Appendix
W ar r ior Met Coal Page 13 Appendix For the six months ended For the six months ended June June 30, 2018 (Unaudited) 30, 2017 (Unaudited) Short Tons Metric Tons Short Tons Metric Tons Tons sold (in 000s) 4,002 3,631 3,069 2,784 Tons produced (in 000s) 4,027 3,654 3,522 3,195 Gross price realization
Slide 15: Appendix: Generated Significant Cash Flow (Q2 2018)
W ar r ior Met Coal Page 14 Appendix: Generated Significant Cash Flow (Q2 2018) ($ in millions) 700 Q2’18 free cash flow generated of $100 million prior 600 to special dividend 500 -$7.0 -$4.0 -$33.0 +$28.0 +$25.0 +$91.0 +$0.0 -$2.0 -$12.0 $409.0 -$353.0 400 300 $323.0 200 100 $56.0 0 Beg. Cash Net
Slide 16: Appendix: Generated Significant Cash Flow (2018)
W ar r ior Met Coal Page 15 Appendix: Generated Significant Cash Flow (2018) ($ in millions) 800 2018 free cash flow 700 generated of $271 million prior to senior secured notes issuance and 600 special dividend 500 +$127.0 -$11.0 -$12.0 $411.0 -$355.0 400 +$54.0 -$8.0 -$5.0 +$12.0 +$3.0 -$55.0 +$270