Warrior Met Coal, Inc. · NYSE:HCC
Warrior Met Coal — Q4 2017 Earnings Presentation
14 slides from Warrior Met Coal's earnings presentation, Feb 14, 2018
Slide 1: Warrior Met Coal Fourth Quarter 2017 Results
Warrior Met Coal Fourth Quarter 2017 Results February 14, 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: 2017 Achievements
W ar r ior Met Coal Page 2 2017 Achievements ✓ Successful Initial Public Offering and NYSE listing under ticker symbol “HCC” ✓ Strong operational and financial performance ✓ Met or exceeded the Company’s guidance targets ✓ Adoption of capital allocation policy ✓ Initiation of regular $0.05 quarterly
Slide 4: Sales and Production in Q4 2017
W ar r ior Met Coal Page 3 Sales and Production in Q4 2017 Q4 2017 FULL YEAR 2017 Tons produced (in 000s Short tons 1,573 Tons produced (in 000s St) 6,714 (“St”)) Tons sold (in 000s St) 1,355 Tons sold (in 000s St) 6,527 Gross price realization (1) 101% Gross price realization (1) 96% Average net se
Slide 5: Strong Performance Across Key Metrics in Q4 2017
W ar r ior Met Coal Page 4 Strong Performance Across Key Metrics in Q4 2017 Sales Volume (St in 000s) Average Net Selling Price ($/St) Revenue ($ in millions) Q4 2016 vs. Q4 2017 Q4 2016 vs. Q4 2017 Q4 2016 vs. Q4 2017 +56% +42% +10% 1,355 $169 $240 954 $153 $154 Q4 2016 Q4 2017 Q4 2016 Q4 2017 Q4 2
Slide 6: Strong Performance Across Key Metrics in Full Year 2017
W ar r ior Met Coal Page 5 Strong Performance Across Key Metrics in Full Year 2017 Sales Volume (St in 000s) Average Net Selling Price ($/St) Revenue ($ in millions) 2016(1) vs. 2017(2) 2016(1) vs. 2017(2) 2016(1) vs. 2017(2) +148% +64% +292% $172 $1,169 6,527 $105 2,635 $298 2016 2017 2016 2017 201
Slide 7: Production Ramp Up Continues
W ar r ior Met Coal Page 6 Production Ramp Up Continues (thousand short tons) Q4’17 Achievements Q4’17 production 2,000 Production increases 1,909 52% higher than 52% Q4’16 1,800 1,614 1,620 Q4’17 production 1,600 517 1,573 only marginally 1,400 lower than Q3’17 454 480 400 despite completion 1,
Slide 8: Generated Significant Cash Flow with Strong Margins in 2017
Page 7 Generated Significant Cash Flow with Strong Margins in 2017 Free Cash Flow* ($ in millions) Adj. EBITDA * 2017 Achievements Margin(1) 53 % 52 % 34 % 36 % $ 160 Q4’17 Free Cash $ 145 Flow* of $61 million, which is $52 million $ 140 higher than in Q4’16 $ 120 Completed 3 longwall moves back
Slide 9: Looking Forward: 2018 Guidance
W ar r ior Met Coal Page 8 Looking Forward: 2018 Guidance • On Track to Building Shareholder Value in 2018 • After three longwall moves in Q4’17, the Company is well positioned heading into 2018 to generate strong cash flows • Coal sales of 6.6 – 7.2 million St • Coal production of 6.6 – 7.2 million
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 December 31, 2017 (Unaudited) December 31, 2016 (Unaudited) Short Tons Metric Tons Short Tons Metric Tons Tons sold (in 000s) 1,355 1,229 954 865 Tons produced (in 000s) 1,573 1,427 1,038 942 Gross price reali
Slide 12: Appendix
W ar r ior Met Coal Page 11 Appendix Successor Successor Predecessor The table below compares certain operating statistics for us on a “Successor” and For the nine months For the year ended For the three months “Predecessor” basis. Successor is Warrior ended December 31, December 31, 2017 ended Marc
Slide 13: Appendix: Generated Significant Cash Flow (Q4 2017)
W ar r ior Met Coal Page 12 Appendix: Generated Significant Cash Flow (Q4 2017) 700 ($ in millions) +$345 -$3 -$1 $638 -$602 2017 free cash flow* 600 generated of $61 million prior to senior secured notes issuance and dividends 500 400 +$24 +$17 -$18 -$47 +$19 -$30 +$97 300 $235 Other includes incom
Slide 14: Appendix: Generated Significant Cash Flow (Full Year 2017)
W ar r ior Met Coal Page 13 Appendix: Generated Significant Cash Flow (Full Year 2017) 2017 free cash flow* ($ in millions) generated of $342 million prior +$345 -$3 -$4 -$797 to senior secured notes issuance $833 800 and dividends +$82 -$60 700 -$14 -$58 +$455 +$30 600 -$93 500 400 Other includes i