Warrior Met Coal, Inc. · NYSE:HCC
Warrior Met Coal — Q2 2020 Earnings Presentation
15 slides from Warrior Met Coal's earnings presentation, Aug 5, 2020
Slide 1: Second Quarter 2020 Results
Second Quarter 2020 Results August 5, 2020 PRELIMINARY | SUBJECT TO FURTHER REVIEW AND EVALUATION These materials may not be used or relied upon for any purpose other than as specifically contemplated by a written agreement with Credit Suisse AG or its Affiliates (hereafter “Credit Suisse”).
Slide 2: Forward looking statements
Wa rri o r Met C o a l Page 1 Forward looking statements These slides contain, and the officers and representatives of Warrior Met Coal, Inc. (the “Company”) may from time to time make, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Sectio
Slide 3: Second Quarter 2020 Achievements
Wa rri o r Met C o a l Page 2 Second Quarter 2020 Achievements 1 Achieved sales volume of 1.5 million short tons (“St”) and a gross price realization of 100%(1) 2 Achieved production volume of 2.1 million St while completing two longwall moves 3 Achieved Adjusted EBITDA* of $19.5 million in low
Slide 4: Key Metrics for Q2 2020 vs. Q2 2019
Wa rri o r Met C o a l Page 3 Key Metrics for Q2 2020 vs. Q2 2019 Q2 2020 Q2 2019 % Change Tons produced (in 000s St) 2,116 Tons produced (in 000s St) 2,195 (4%) Tons sold (in 000s St) 1,472 Tons sold (in 000s St) 2,240 (34%) Gross price realization (1) 100% Gross price realization (1) 97% 3% Averag
Slide 5: Key Metrics for Six Months Ended June 30, 2020 vs. 2019
Wa rri o r Met C o a l Page 4 Key Metrics for Six Months Ended June 30, 2020 vs. 2019 For the six months ended June 30, 2020 For the six months ended June 30, 2019 % Change Tons produced (in 000s St) 4,215 Tons produced (in 000s St) 4,494 (6%) Tons sold (in 000s St) 3,286 Tons sold (in 000s St) 4,33
Slide 6: Leverage and Liquidity Analysis
Wa rri o r Met C o a l Page 5 Leverage and Liquidity Analysis Financial Metrics ($MM except ratios) Leverage (for the trailing twelve months ended June 30, 2020) Adjusted EBITDA* $202.9 (1) Consolidated Net Debt* $191.3 Net Leverage Ratio* 0.9x Liquidity (as of June 30, 2020) Cash and Cash Equivalen
Slide 7: Generated Significant Free Cash Flow on Strong Conversion of Adjusted EBITDA Margins
Wa rri o r Met C o a l Page 6 Generated Significant Free Cash Flow* on Strong Conversion of Adjusted EBITDA* Margins(1) Adjusted EBITDA* Margin (1) FCF Conversion*(2) 112% 142% (24%) (9%) 5% 51% 50.0% 44.2% 45.0% 40.0% 35.0% 30.0% 28.8% 27.2% 25.0% 23.0% 20.0% 19.0% 15.0% 11.9% 10.0% 5.0% 0.0% Q2 20
Slide 8: Production Overview
Wa rri o r Met C o a l Page 7 Production Overview Tons Produced (thousand st) Longwall 1 2 1 - 2 moves 2,500 2,195 2,164 2,099 2,116 2,000 600 1,813 616 596 549 487 1,500 1,000 1,595 1,548 1,503 1,567 1,326 500 – Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 No. 7 Mine No. 4 Mine 1 short ton is equivalent
Slide 9: Appendix
Wa rri o r Met C o a l Page 8 Appendix
Slide 10: Appendix: Three months operating metrics
Wa rri o r Met C o a l Page 9 Appendix For the three months ended For the three months ended June 30, 2020 (Unaudited) June 30, 2019 (Unaudited) Short Tons Metric Tons Short Tons Metric Tons Tons sold (in 000s) 1,472 1,335 2,240 2,032 Tons produced (in 000s) 2,116 1,920 2,195 1,992 Gross price reali
Slide 11: Appendix: Six months operating metrics
Wa rri o r Met C o a l Page 10 Appendix For the six months ended For the six months ended June June 30, 2020 (Unaudited) 30, 2019 (Unaudited) Short Tons Metric Tons Short Tons Metric Tons Tons sold (in 000s) 3,286 2,981 4,335 3,933 Tons produced (in 000s) 4,215 3,824 4,494 4,076 Gross price realizat
Slide 12: Non-GAAP Financial Measures: Adjusted EBITDA Reconciliation
Wa rri o r Met C o a l Page 11 Appendix Non-GAAP Financial Measures Reconciliation of Adjusted EBITDA to Amounts Reported Under U.S. GAAP For the three months ended For the six months ended June 30, (Unaudited) June 30, (Unaudited) (in thousands) 2020 2019 2020 2019 Net income (loss) $ (9,161) $ 125
Slide 13: Non-GAAP Financial Measures: Free Cash Flow Reconciliation
W ar r ior Met Coal Page 12 Appendix Non-GAAP Financial Measures Reconciliation of Free Cash Flow to Amounts Reported Under U.S. GAAP For the three months ended For the six months ended June 30, (Unaudited) June 30, (Unaudited) (in thousands) 2020 2019 2020 2019 Net cash provided by operating activi
Slide 14: Non-GAAP Financial Measures: Adjusted Net Income Reconciliation
W ar r ior Met Coal Page 13 Appendix Non-GAAP Financial Measures Reconciliation of Adjusted Net Income (Loss) to Amounts Reported Under U.S. GAAP For the three months ended For the six months ended June 30, (Unaudited) June 30, (Unaudited) (in thousands) 2020 2019 2020 2019 Net income (loss) $ (9,16
Slide 15: Non-GAAP Financial Measures: Cash Cost of Sales Reconciliation
W ar r ior Met Coal Page 14 Appendix Non-GAAP Financial Measures Reconciliation of Cash Cost of Sales (Free-On-Board Port) to Cost of Sales Reported Under U.S. GAAP For the three months ended For the six months ended June 30, (Unaudited) June 30, (Unaudited) (in thousands) 2020 2019 2020 2019 Cost o