Warrior Met Coal, Inc. · NYSE:HCC
Warrior Met Coal — Q3 2020 Earnings Presentation
15 slides from Warrior Met Coal's earnings presentation, Oct 28, 2020
Slide 1: Third Quarter 2020 Results
Third Quarter 2020 Results October 28, 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: Third Quarter 2020 Achievements
Wa rri o r Met C o a l Page 2 Third Quarter 2020 Achievements 1 Achieved sales volume of 1.9 million short tons (“St”) and a record low quarterly cash cost of sales (free on board port)* per short ton of $77.92 since going public 2 Achieved production volume of 1.9 million St while completing one
Slide 4: Key Metrics for Q3 2020 vs. Q3 2019
Wa rri o r Met C o a l Page 3 Key Metrics for Q3 2020 vs. Q3 2019 Q3 2020 Q3 2019 % Change Tons produced (in 000s St) 1,887 Tons produced (in 000s St) 2,164 (13%) Tons sold (in 000s St) 1,933 Tons sold (in 000s St) 1,990 (3%) Gross price realization (1) 90% Gross price realization (1) 102% (12%) Ave
Slide 5: Key Metrics for Nine Months Ended Sept. 30, 2020 vs. 2019
Wa rri o r Met C o a l Page 4 Key Metrics for Nine Months Ended Sept. 30, 2020 vs. 2019 For the nine months ended Sept. 30, 2020 For the nine months ended Sept. 30, 2019 % Change Tons produced (in 000s St) 6,102 Tons produced (in 000s St) 6,657 (8%) Tons sold (in 000s St) 5,219 Tons sold (in 000s St
Slide 6: Leverage and Liquidity Analysis
Wa rri o r Met C o a l Page 5 Leverage and Liquidity Analysis Financial Metrics ($MM except ratios) Leverage (for the trailing twelve months ended Sept. 30, 2020) Adjusted EBITDA* $136.3 Consolidated Net Debt* (1) $199.7 Net Leverage Ratio* 1.47x Liquidity (as of Sept. 30, 2020) Cash and Cash Equiva
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) 142% (24%) (9%) 5% 8% (9%) 35.0% 30.0% 28.8% 27.2% 25.0% 20.0% 19.0% 17.6% 15.0% 11.9% 10.0% 8.9% 5.0% 0.0% Q3 2019 Q4 2019 Q1 2020 Q
Slide 8: Production Overview
Wa rri o r Met C o a l Page 7 Production Overview Tons Produced (thousand st) Longwall 2 1 - 2 1 moves 2,500 2,164 2,099 2,116 2,000 1,887 1,813 616 596 549 493 487 1,500 1,000 1,548 1,503 1,567 1,326 1,394 500 – Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 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
Wa rri o r Met C o a l Page 9 Appendix For the three months ended For the three months ended September 30, 2020 (Unaudited) September 30, 2019 (Unaudited) Short Tons Metric Tons Short Tons Metric Tons Tons sold (in 000s) 1,933 1,753 1,990 1,805 Tons produced (in 000s) 1,887 1,712 2,164 1,963 Gross p
Slide 11: Appendix
Wa rri o r Met C o a l Page 10 Appendix For the nine months ended For the nine months ended September 30, 2020 (Unaudited) September 30, 2019 (Unaudited) Short Tons Metric Tons Short Tons Metric Tons Tons sold (in 000s) 5,219 4,734 6,325 5,738 Tons produced (in 000s) 6,102 5,536 6,657 6,039 Gross pr
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 nine months ended Sept. 30, (Unaudited) Sept. 30, (Unaudited) (in thousands) 2020 2019 2020 2019 Net income (loss) $ (14,434) $
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 nine months ended Sept. 30, (Unaudited) Sept. 30, (Unaudited) (in thousands) 2020 2019 2020 2019 Net cash provided by operating act
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 nine months ended Sept. 30, (Unaudited) Sept. 30, (Unaudited) (in thousands) 2020 2019 2020 2019 Net income (loss) $ (1
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 nine months ended Sept. 30, (Unaudited) Sept. 30, (Unaudited) (in thousands) 2020 2019 2020 2019 Cos