Warrior Met Coal, Inc. · NYSE:HCC
Warrior Met Coal — Q3 2018 Earnings Presentation
16 slides from Warrior Met Coal's earnings presentation, Oct 31, 2018
Slide 1: Third Quarter 2018 Results
Warrior Met Coal Third Quarter 2018 Results October 31, 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 Strong operational performance, including YTD production of 5.8mst and sales of 5.7mst ✓ 2 Operated ahead of schedule on production ramp, enabling increased 2018 guidance targets ✓ 3 Generated Adjusted EBITDA* of $439 million and Free Cash Flow* of $349
Slide 4: Sales and Production in Q3 2018 vs. Q3 2017
W ar r ior Met Coal Page 3 Sales and Production in Q3 2018 vs. Q3 2017 Q3 2018 Q3 2017 Tons produced (in 000s Short tons 1,819 Tons produced (in 000s St) 1,620 (“St”)) Tons sold (in 000s St) 1,668 Tons sold (in 000s St) 2,103 Gross price realization (1) 97% Gross price realization (1) 85% Average ne
Slide 5: Sales and Production in 2018 vs. 2017
W ar r ior Met Coal Page 4 Sales and Production in 2018 vs. 2017 YTD 2018 YTD 2017 Tons produced (in 000s St) 5,846 Tons produced (in 000s St) 5,142 Tons sold (in 000s St) 5,669 5,172 Tons sold (in 000s St) Gross price realization (1) 98% Gross price realization (1) 108% Average net selling price (p
Slide 6: Performance Across Key Metrics in Q3 2018
W ar r ior Met Coal Page 5 Performance Across Key Metrics in Q3 2018 Sales Volume (St in 000s) Average Net Selling Price ($/St) Revenue ($ in millions) Q3 2017 vs. Q3 2018 Q3 2017 vs. Q3 2018 Q3 2017 vs. Q3 2018 -13% -21% +10% $159 $312 2,103 1,668 $144 $273 Q3 2017 Q3 2018 Q3 2017 Q3 2018 Q3 2017 Q
Slide 7: Strong Performance Across Key Metrics in 2018
W ar r ior Met Coal Page 6 Strong Performance Across Key Metrics in 2018 Sales Volume (St in 000s) Average Net Selling Price ($/St) Revenue ($ in millions) 2017 vs. 2018 2017 vs. 2018 2017 vs. 2018 +10% +10% +1% $1,018 5,669 $175 $929 5,172 $173 2017 2018 2017 2018 2017 2018 Adjusted EBITDA* ($ in m
Slide 8: Leverage and Liquidity Analysis
W ar r ior Met Coal Page 7 Leverage and Liquidity Analysis Financial Metrics ($MM except ratios) Leverage (for the trailing twelve months ended September 30, 2018) Adjusted EBITDA* $525.7 (1) Consolidated Net Debt* $337.4 Net Leverage Ratio* 0.64x Liquidity (as of September 30, 2018) Cash and Cash E
Slide 9: Generated Significant Cash Flow with Strong Margins
W ar r ior Met Coal Page 8 Generated Significant Cash Flow with Strong Margins Free Cash Flow* ($ in millions) Adj. EBITDA Margin*(1) 34% 36% 51% 40% 34% $180 $171 $160 $140 Q3 2018 Achievements $120 $100 Q3 free cash flow* $100 of $78.2 million, net $82 of purchases of PPE $78 $80 of $24.2 millio
Slide 10: Production Ramp Up Continues in 2018
W ar r ior Met Coal Page 9 Production Ramp Up Continues in 2018 Tons Produced (thousand short tons) Longwall moves 1 - - 3 - - 2 Q3’18 Achievements 2,098 Q3 2018 2,000 1,909 1,929 production 12% 1,819 greater than Q3 1,800 496 1,614 1,573 2017 517 1,620 1,600 596 582 2 longwall moves 1,400 454 4
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 $100 -
Slide 12: Appendix
W ar r ior Met Coal Page 11 Appendix
Slide 13: Appendix
W ar r ior Met Coal Page 12 Appendix For the three months ended For the three months ended September 30, 2018 (Unaudited) September 30, 2017 (Unaudited) Short Tons Metric Tons Short Tons Metric Tons Tons sold (in 000s) 1,668 1,513 2,103 1,908 Tons produced (in 000s) 1,819 1,650 1,620 1,470 Gross pri
Slide 14: Appendix
W ar r ior Met Coal Page 13 Appendix For the nine months ended For the nine months ended September 30, 2018 (Unaudited) September 30, 2017 (Unaudited) Short Tons Metric Tons Short Tons Metric Tons Tons sold (in 000s) 5,669 5,143 5,172 4,692 Tons produced (in 000s) 5,846 5,303 5,142 4,665 Gross price
Slide 15: Appendix: Generated Significant Cash Flow (Q3 2018)
W ar r ior Met Coal Page 14 Appendix: Generated Significant Cash Flow (Q3 2018) ($ in millions) 400 350 Q3’18 free cash flow generated of $78 million prior 300 to quarterly dividend 250 200 +$19.0 -$7.6 +$29.0 -$6.0 -$24.0 +$15.0 $134.0 -$2.6 $131.0 150 -$0.5 +$53.0 100 $56.0 50 0 Beg. Cash Net inco
Slide 16: Appendix: Generated Significant Cash Flow (2018)
W ar r ior Met Coal Page 15 Appendix: Generated Significant Cash Flow (2018) ($ in millions) 800 2018 free cash flow generated of $349 million prior 700 to senior secured notes issuance, quarterly and special dividend 600 +$127.0 -$11.5 -$12.0 $489.0 -$358.0 500 -$11.1 +$30.8 -$3.7 -$79.6 +$82.9 +$7