Warrior Met Coal, Inc. · NYSE:HCC
Warrior Met Coal — Q3 2017 Earnings Presentation
12 slides from Warrior Met Coal's earnings presentation, Nov 9, 2017
Slide 1: Third Quarter 2017 Results
Warrior Met Coal Third Quarter 2017 Results November 9, 2017
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: Third Quarter 2017 Highlights
W ar r ior Met Coal Page 2 Third Quarter 2017 Highlights • Achieved total revenues of $312.0 million • Adjusted EBITDA* of $107.3 million • Adjusted net income* of $119.7 million, adjusted EPS* of $2.27 • Free cash flow* of $81.7 million *See “Non-GAAP Financial Measures”.
Slide 4: Sales and production in Q3 2017
W ar r ior Met Coal Page 3 Sales and production in Q3 2017 Q3 2017 YTD 2017 Tons produced (in 000s Short tons Tons produced (in 000s St) 5,142 1,620 (“St”)) Tons sold (in 000s St) 5,172 Tons sold (in 000s St) 2,103 Average selling price (per St) $173.20 Average selling price (per St) $144.06 Revenue
Slide 5: Strong Performance Across Key Metrics in Q3 2017
W ar r ior Met Coal Page 4 Strong Performance Across Key Metrics in Q3 2017 Production (St in 000s) Net Income (loss) ($ in millions) Revenue ($ in millions) Q3 2016 vs. Q3 2017 Q3 2016 vs. Q3 2017 Q3 2016 vs. Q3 2017 +180% +452% +489% 1,620 $120 $312 ($34) 578 $53 Q3 2016 Q3 2017 Q3 2016 Q3 2017 Q3
Slide 6: Strong Performance Across Key Metrics
W ar r ior Met Coal Page 5 Strong Performance Across Key Metrics Production (St in 000s) Net Income (loss) ($ in millions) Revenue ($ in millions) 2016(1) vs. 2017(2) vs LTM(3) 2016(1) vs. 2017(2) vs LTM(3) 2016(1) vs. 2017(2) vs LTM(3) $1,083 6,180 $929 5,142 $358 $388 1,490 $144 2016 2017 LTM 2016
Slide 7: Production Ramp Up Continues
W ar r ior Met Coal Page 6 Production Ramp Up Continues (thousand short tons) Q3’17 Achievements Q3 production 2,000 Production increases 1,909 180% higher than 180% Q3 2016 1,800 1,614 1,620 Addition of 1 CM 1,600 517 section 1,400 454 480 Added 67 1,200 employees to our 1,038 workforce 1,000
Slide 8: Generated Significant Cash Flow (Quarter-To-Date)
W ar r ior Met Coal Page 7 Generated Significant Cash Flow (Quarter-To-Date) ($ in millions) 450 400 Q3’17 free cash flow* generated of $81.7 million prior 350 to third quarter dividend +$19.6 -$51.2 300 +$119.7 +$37.0 -$6.2 -$2.8 -$34.4 250 -$0.7 $238 -$2.7 $235.4 200 $157.1 150 100 50 0 Beg. Cash
Slide 9: Generated Significant Cash Flow (Year-To-Date)
W ar r ior Met Coal Page 8 Generated Significant Cash Flow (Year-To-Date) ($ in millions) 800 700 2017 free cash flow* generated of $280.4 million prior to dividends 600 -$76.6 +$57.6 +$357.9 +$11.6 -$11.5 +$4.1 -$62.7 500 -$2.3 $430.8 -$195.4 400 A/R – Higher volumes and price 300 $235.4 200 $152.7
Slide 10: Looking Forward: On Track to Building Stockholder Value
W ar r ior Met Coal Page 9 Looking Forward: On Track to Building Stockholder Value • Continued positive outlook for the full year 2017 • Generating strong cash flow • Coal sales of 6.1 – 6.3 million St • Coal production of 6.2 – 6.5 million St • Cash cost of sales (free-on-board port)* of $89 - $95
Slide 11: Appendix
W ar r ior Met Coal Page 10 Appendix For the three months ended For the three months ended September 30, 2017 (Unaudited) September 30, 2016 (Unaudited) Short Tons Metric Tons Short Tons Metric Tons Tons sold (in 000s) 2,103 1,908 555 503 Tons produced (in 000s) 1,620 1,470 578 525 Average selling p
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 six months For the three months “Predecessor” basis. Successor is Warrior ended September ended September 30, ended March