Warrior Met Coal, Inc. · NYSE:HCC
Warrior Met Coal — Q1 2020 Earnings Presentation
13 slides from Warrior Met Coal's earnings presentation, Apr 29, 2020
Slide 1: First Quarter 2020 Results
First Quarter 2020 Results April 29, 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 rrio r Met Co 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 Section
Slide 3: First Quarter 2020 Achievements
Wa rrio r Met Co a l Page 2 First Quarter 2020 Achievements 1 Achieved sales volume of 1.8 million short tons (“St”) and second lowest quarterly cash cost of sales (free on board port) per St of $83.07 ✓ 2 Achieved production volume of 2.1 million St ✓ 3 Delivered production and sales volume results
Slide 4: Key Metrics for Q1 2020 vs. Q1 2019
Wa rrio r Met Co a l Page 3 Key Metrics for Q1 2020 vs. Q1 2019 Q1 2020 Q1 2019 % Change Tons produced (in 000s St) 2,099 Tons produced (in 000s St) 2,298 (9%) Tons sold (in 000s St) 1,814 Tons sold (in 000s St) 2,096 (13%) Gross price realization (1) 89% Gross price realization (1) 98% (9%) Average
Slide 5: Leverage and Liquidity Analysis
Wa rrio r Met Co a l Page 4 Leverage and Liquidity Analysis Financial Metrics ($MM except ratios) Leverage (for the trailing twelve months ended March 31, 2020) Adjusted EBITDA* $359.3 Consolidated Net Debt* (1) $186.8 Net Leverage Ratio* 0.52x Liquidity (as of March 31, 2020) Cash and Cash Equivale
Slide 6: Generated Significant Free Cash Flow on Strong Conversion of Adjusted EBITDA Margins
Wa rrio r Met Co a l Page 5 Generated Significant Free Cash Flow* on Strong Conversion of Adjusted EBITDA* Margins(1) Adjusted EBITDA* Margin (1) FCF Conversion*(2) 53% 112% 142% (24%) (9%) 84% 60.0% 50.0% 47.9% 44.2% 40.0% 32.2% 30.0% 28.8% 27.2% 19.0% 20.0% 10.0% 0.0% Q1 2019 Q2 2019 Q3 2019 Q4 20
Slide 7: Production Overview
Wa rrio r Met Co a l Page 6 Production Overview Tons Produced (thousand st) Longwall 1 1 2 1 - moves 2,500 2,298 2,195 2,164 2,099 2,000 520 600 616 1,813 596 487 1,500 1,000 1,778 1,595 1,548 1,503 1,326 500 – Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 No. 7 Mine No. 4 Mine 1 short ton is equivalent t
Slide 8: Appendix
Wa rrio r Met Co a l Page 7 Appendix
Slide 9: Appendix
Wa rrio r Met Co a l Page 8 Appendix For the three months ended For the three months ended March 31, 2020 (Unaudited) March 31, 2019 (Unaudited) Short Tons Metric Tons Short Tons Metric Tons Tons sold (in 000s) 1,814 1,646 2,096 1,901 Tons produced (in 000s) 2,099 1,904 2,298 2,084 Gross price reali
Slide 10: Non-GAAP Financial Measures
Wa rrio r Met Co a l Page 9 Appendix Non-GAAP Financial Measures For the three months ended March 31, (in thousands) 2020 2019 Net income $ 21,545 $ 110,447 Interest expense, net 7,533 8,592 Income tax expense 3,241 27,984 Depreciation and depletion 28,692 22,233 Asset retirement obligation accretio
Slide 11: Reconciliation of Free Cash Flow to Amounts Reported Under U.S. GAAP
W ar r ior Met Coal Page 10 Appendix Non-GAAP Financial Measures Reconciliation of Free Cash Flow to Amounts Reported Under U.S. GAAP For the three months ended March 31, (in thousands) 2020 2019 Net cash provided by operating activities $ 21,022 $ 126,408 Purchases of property, plant and equipment
Slide 12: Reconciliation of Adjusted Net Income to Amounts Reported Under U.S. GAAP
W ar r ior Met Coal Page 11 Appendix Non-GAAP Financial Measures Reconciliation of Adjusted Net Income to Amounts Reported Under U.S. G For the three months ended March 31, (in thousands) 2020 2019 Net income $ 21,545 $ 110,447 Loss on early extinguishment of debt, net of tax — 7,784 Other income, n
Slide 13: Reconciliation of Cash Cost of Sales to Cost of Sales Under U.S. GAAP
W ar r ior Met Coal Page 12 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 March 31, (in thousands) 2020 2019 Cost of sales $ 151,514 $ 182,628 Asset retirement obligation (369) (373)