Ramaco Resources, Inc. Reports Second Quarter 2019 Financial Results
- Adjusted EBITDA of $19.1 million in the second quarter was our highest reported Adjusted EBITDA quarterly figure, and compared to the previous record of $14.9 million in the second quarter of 2018.
- Diluted EPS of $0.43 in the first half of 2019 compared to first half 2018 diluted EPS of $0.38. Trailing 12-month diluted EPS is $0.66.
- Net income of $10.6 million in the second quarter was our highest reported Net income quarterly figure, and compared to the previous record of $10.2 million in the second quarter of 2018.
- Silo remediation work was completed and the Elk Creek prep plant was fully operational by the beginning of August 2019.
- Based on the midpoint of 2019 guidance, Ramaco is almost 90% contracted at an averaged fixed price of $115/ton for its metallurgical coal sales.
- All key 2019 guidance remains unchanged.
LEXINGTON, Ky., Aug. 13, 2019 /PRNewswire/ -- Ramaco Resources, Inc. (NASDAQ: METC) ("Ramaco," "Ramaco Resources" or the "Company") today reported second quarter net income of $10.6 million, or $0.26 per fully diluted share for the quarter ended June 30, 2019, as compared to a net income of $10.2 million in the prior year quarter ended June 30, 2018. The Company's adjusted earnings before interest, taxes, depreciation, amortization and equity-based compensation expenses ("Adjusted EBITDA") was $19.1 million for the three months ended June 30, 2019, as compared with Adjusted EBITDA of $14.9 million for the three months ended June 30, 2018. Key operational and financial metrics are presented below:
Key Second Quarter 2019 Metrics |
|||||||||
2Q19 |
1Q19 |
Change |
2Q19 |
2Q18 |
Change |
1H19 |
1H18 |
Change |
|
Sales Of Company Produced Tons |
499,000 |
443,000 |
13% |
499,000 |
493,000 |
1% |
942,000 |
896,000 |
5% |
Revenue ($ MM) |
$65.8 |
$57.5 |
14% |
$65.8 |
$65.3 |
1% |
$123.2 |
$121.2 |
2% |
Cost of Sales ($ MM) |
$43.2 |
$41.0 |
5% |
$43.2 |
$47.9 |
-10% |
$84.2 |
$92.2 |
-9% |
Pricing Of Company Produced ($/Ton) |
$116 |
$104 |
12% |
$116 |
$91 |
27% |
$110 |
$91 |
21% |
Cash Costs Of Company Produced ($/Ton) |
$71 |
$68 |
4% |
$71 |
$56 |
27% |
$69 |
$60 |
15% |
Cash Margins Of Company Produced ($/Ton) |
$45 |
$36 |
25% |
$45 |
$35 |
29% |
$41 |
$31 |
32% |
Net Income ($ MM) |
$10.6 |
$6.9 |
54% |
$10.6 |
$10.2 |
4% |
$17.5 |
$15.5 |
13% |
Adjusted EBITDA ($ MM) |
$19.1 |
$13.7 |
39% |
$19.1 |
$14.9 |
28% |
$32.8 |
$24.2 |
36% |
Capex ($ MM) |
$11.5 |
$8.2 |
40% |
$11.5 |
$14.7 |
-22% |
$19.7 |
$27.5 |
-28% |
Diluted Earnings per Share |
$0.26 |
$0.17 |
53% |
$0.26 |
$0.25 |
4% |
$0.43 |
$0.38 |
13% |
Second Quarter 2019 Summary
Year over Year Quarterly Comparison
Overall sales of company produced tons in the second quarter of 2019 were 499,000 tons, a 1% increase from the second quarter of 2018 of 493,000 tons. Cash margins on Company produced and sold coal at Elk Creek improved by 32% from approximately $37 per ton in the second quarter of 2018 to approximately $49 per ton in the second quarter of 2019. Cash mine costs per ton on Company produced and sold coal at Elk Creek were $66 in the second quarter of 2019 compared to $53 in the second quarter of 2018.
2019 Quarter over Quarter Comparison
Overall sales of company produced tons in the second quarter of 2019 were up 13% from the first quarter of 2019. Cash margins on Company produced and sold coal at Elk Creek improved by 26%, from approximately $39 per ton in the first quarter of 2019 to approximately $49 per ton in the second quarter of 2019. Adjusted EBITDA for the second quarter of 2019 was $19.1 million as compared to $13.7 million for the first quarter of 2019 or up over 39%. Cash mine costs per ton on Company produced and sold coal at Elk Creek were $66 in the second quarter of 2019, up approximately 5% from $63 in the first quarter of 2019.
Randall Atkins, Ramaco Resources' Executive Chairman remarked, "We are of course very pleased to report our strongest quarter to date, basically across the board. We have achieved record results in all of our key financial and operational metrics and are looking forward to continuing our measured production growth throughout the balance of the year and into 2020. Given the current turbulence in both the financial and coal markets, it is worth reemphasizing the conservative approach which we have deployed to build our company. Ramaco was strategically designed to weather these types of market dislocations. Ramaco continues to have some of the lowest cash mining costs, net debt and legacy liabilities of any of our public peers. We have done so while providing our customers high quality metallurgical coals, which have been widely accepted in the blends of both our domestic and international customers. We look forward to participating in the current 2020 domestic marketing season as an incumbent supplier to many of our best customers and to also expanding our sales profile in this coming year into new export markets."
Additional Financial Results
The Company ended the quarter with approximately $5.5 million of cash on hand, $26.1 million of accounts receivable and $21.2 million of availability under the Revolving Credit Facility. Free cash flow generated during 2019, as well as borrowings available through our Revolving Credit Facility, are expected to be used to fund working capital, mine expansion and related capital expenditures.
Actual cash taxes payable for 2019 are expected to be less than $0.2 million.
In the first half of 2019, the Company recorded income tax expense of $3.5 million for an annual effective tax rate of approximately 16.8%.
Capital expenditures totaled approximately $11.5 million during the second quarter of 2019 and approximately $19.8 million through the six months ended June 30, 2019. Capital expenditures decreased by approximately 22% compared to the second quarter of 2018.
Operational Results
The exhibit below summarizes some of the key sales, production and financial metrics for the periods noted:
Three months ended |
Six months ended |
||||||||||||||||
June 30, |
March 31, |
June 30, |
June 30, |
June 30, |
|||||||||||||
In thousands, except per ton amounts |
2019 |
2019 |
2018 |
2019 |
2018 |
||||||||||||
Sales Volume |
|||||||||||||||||
Company |
499 |
443 |
493 |
942 |
896 |
||||||||||||
Purchased |
26 |
35 |
122 |
61 |
241 |
||||||||||||
Total |
525 |
478 |
615 |
1,003 |
1,137 |
||||||||||||
Company Production |
|||||||||||||||||
Elk Creek Mining Complex |
423 |
440 |
478 |
863 |
838 |
||||||||||||
Berwind Development Deep Mine |
53 |
32 |
19 |
85 |
39 |
||||||||||||
Total |
476 |
472 |
497 |
948 |
877 |
||||||||||||
Company Financial Metrics(a) |
|||||||||||||||||
Average revenue per ton |
$ |
116 |
$ |
104 |
$ |
91 |
$ |
110 |
$ |
91 |
|||||||
Average cash costs of coal sold |
71 |
68 |
56 |
69 |
60 |
||||||||||||
Average cash margin per ton |
$ |
45 |
$ |
36 |
$ |
35 |
$ |
41 |
$ |
31 |
|||||||
Elk Creek Financial Metrics(a) |
|||||||||||||||||
Average revenue per ton |
$ |
115 |
$ |
102 |
$ |
90 |
$ |
109 |
$ |
90 |
|||||||
Average cash costs of coal sold |
66 |
63 |
53 |
65 |
57 |
||||||||||||
Average cash margin per ton |
$ |
49 |
$ |
39 |
$ |
37 |
$ |
44 |
$ |
33 |
|||||||
Purchased Coal Financial Metrics(a) |
|||||||||||||||||
Average revenue per ton |
$ |
123 |
$ |
127 |
$ |
101 |
$ |
125 |
$ |
101 |
|||||||
Average cash costs of coal sold |
122 |
108 |
100 |
114 |
95 |
||||||||||||
Average cash margin per ton |
$ |
1 |
$ |
19 |
$ |
1 |
$ |
11 |
$ |
6 |
|||||||
Capital Expenditures |
$ |
11,538 |
$ |
8,199 |
$ |
14,709 |
$ |
19,737 |
$ |
27,478 |
|||||||
(a) Excludes transportation. |
|||||||||||||||||
2019 Outlook
Michael Bauersachs, Ramaco Resources' President and CEO commented, "Overall, our second quarter performance was very good. Our mines, although continuing to lose some potential operating shifts, performed quite well. There were no noteworthy production issues in the second quarter. We anticipate a stable and slightly improving production profile throughout the second half of the year."
"As the third quarter is progressing, we are watching two trends develop. First, we are seeing a deceleration in international pricing, mostly driven by lower demand and uncertainty surrounding Chinese import restrictions. Second, we are seeing pronounced financial weakness in the form of numerous coal bankruptcies. Our well capitalized mines are becoming the new standard in our operating regions. The reliability and quality that comes from our mines has created one of the strongest North American coal sales portfolios in the space. 2020 domestic contracting has begun. It is a very good time to have an outsized incumbent North American sales position that is well embedded into our customer's blends."
"With that being said, we have made a large push to qualify our coal in all key international markets. The large number of recent US coal bankruptcies has caused concern with potential export customers. Our advantaged balance sheet, combined with our approach to mining, is helping set us apart and advance these important efforts."
2019 Estimated Production, Sales, Cost and Capital Expenditure Guidance |
|||||||||
2019 Guidance |
2018 Actuals |
||||||||
Company Production |
|||||||||
Elk Creek |
1,600 |
- |
1,900 |
1,669 |
|||||
Berwind Development Deep Mine |
200 |
- |
300 |
81 |
|||||
Total |
1,800 |
- |
2,200 |
1,750 |
|||||
Sales Mix |
|||||||||
Metallurgical |
1,925 |
- |
2,300 |
2,066 |
|||||
Steam |
75 |
- |
100 |
82 |
|||||
2,000 |
- |
2,400 |
2,148 |
||||||
Cost Per Ton (a) |
|||||||||
Elk Creek |
$ |
63 |
- |
$ |
67 |
$ |
60 |
||
Capital Expenditures |
$ |
35,000 |
- |
$ |
40,000 |
$ |
48,137 |
||
(a) Cost per ton guidance does not include the potential impact of inventory adjustments. |
|||||||||||
Committed 2019 Sales Volume (b) |
||||||
Volume |
Average Price |
|||||
Committed 2019 Sales Volume |
||||||
Domestic, fixed priced |
1,519 |
$ |
113 |
|||
Export, fixed priced |
312 |
$ |
124 |
|||
Total, fixed priced |
1,831 |
$ |
115 |
|||
Domestic, indexed |
166 |
|||||
Total, indexed priced |
166 |
|||||
Total Committed Tons |
1,997 |
|||||
(b) As of June 30, 2019, amounts include approximately 100,000 tons of purchased coal |
|||||||
About Ramaco Resources, Inc.
Ramaco Resources, Inc. is an operator and developer of high-quality, low cost metallurgical coal in southern West Virginia, southwestern Virginia and southwestern Pennsylvania. Its executive offices are in Lexington, Kentucky, with operational offices in Charleston, West Virginia. The Company has five active mines within two mining complexes at this time.
News and additional information about Ramaco Resources, including filings with the Securities and Exchange Commission, are available at http://www.ramacoresources.com. For more information, contact investor relations at (859) 244-7455.
Second Quarter Earnings Conference Call
Ramaco Resources will hold its quarterly conference call and webcast at 9:00 AM Eastern Time (ET) on Wednesday, August 14, 2019 to present its results for the second quarter of 2019.
The conference call can be accessed by calling (844) 852-8392 domestically or (703) 639-1226 internationally. The webcast for this release will be accessible by visiting https://edge.media-server.com/mmc/p/ewe5d2jw.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
Certain statements contained in this news release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements represent Ramaco Resources' expectations or beliefs concerning 2019 guidance, future events, anticipated revenues, costs and expectations regarding operating results, and it is possible that the results described in this news release will not be achieved. These forward-looking statements are subject to risks, uncertainties and other factors, many of which are outside of Ramaco Resources' control, which could cause actual results to differ materially from the results discussed in the forward-looking statements. These factors include, without limitation, unexpected delays in our current mine development activities, failure of our sales commitment counterparties to perform, increased government regulation of coal in the United States or internationally, or unexpected decline of demand for coal in export markets and underperformance of the railroads. Any forward-looking statement speaks only as of the date on which it is made, and, except as required by law, Ramaco Resources does not undertake any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. New factors emerge from time to time, and it is not possible for Ramaco Resources to predict all such factors. When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements found in Ramaco Resources' filings with the Securities and Exchange Commission ("SEC"), including its Annual Report on Form 10-K. The risk factors and other factors noted in Ramaco Resources' SEC filings could cause its actual results to differ materially from those contained in any forward-looking statement.
Ramaco Resources, Inc. |
||||||||||||
Three months ended June 30, |
Six months ended June 30, |
|||||||||||
In thousands, except per share amounts |
2019 |
2018 |
2019 |
2018 |
||||||||
Revenue |
$ |
65,761 |
$ |
65,278 |
$ |
123,221 |
$ |
121,221 |
||||
Cost and expenses |
||||||||||||
Cost of coal sales (exclusive of items shown separately below) |
43,219 |
47,860 |
84,225 |
92,191 |
||||||||
Asset retirement obligation accretion |
128 |
124 |
256 |
247 |
||||||||
Depreciation and amortization |
4,822 |
2,955 |
8,938 |
5,393 |
||||||||
Selling, general and administrative |
4,703 |
3,692 |
8,664 |
7,123 |
||||||||
Total cost and expenses |
52,872 |
54,631 |
102,083 |
104,954 |
||||||||
Operating income |
12,889 |
10,647 |
21,138 |
16,267 |
||||||||
Other income |
194 |
513 |
492 |
1,002 |
||||||||
Interest expense, net |
(302) |
(314) |
(609) |
(414) |
||||||||
Income before tax |
12,781 |
10,846 |
21,021 |
16,855 |
||||||||
Income tax expense |
2,168 |
642 |
3,525 |
1,385 |
||||||||
Net income |
$ |
10,613 |
$ |
10,204 |
$ |
17,496 |
$ |
15,470 |
||||
Earnings per common share |
||||||||||||
Basic earnings per share |
$ |
0.26 |
$ |
0.25 |
$ |
0.43 |
$ |
0.39 |
||||
Diluted earnings per share |
$ |
0.26 |
$ |
0.25 |
$ |
0.43 |
$ |
0.38 |
||||
Basic weighted average shares outstanding |
40,869 |
40,082 |
40,737 |
39,994 |
||||||||
Diluted weighted average shares outstanding |
40,965 |
40,340 |
40,810 |
40,242 |
||||||||
Ramaco Resources, Inc. |
||||||
In thousands, except share amounts |
June 30, 2019 |
December 31, 2018 |
||||
Assets |
||||||
Current assets |
||||||
Cash and cash equivalents |
$ |
5,541 |
$ |
6,951 |
||
Accounts receivable |
26,099 |
10,729 |
||||
Inventories |
16,593 |
14,185 |
||||
Prepaid expenses |
1,604 |
3,154 |
||||
Total current assets |
49,837 |
35,019 |
||||
Property, plant and equipment, net |
164,193 |
149,205 |
||||
Advanced coal royalties |
3,113 |
3,045 |
||||
Other assets |
994 |
975 |
||||
Total Assets |
$ |
218,137 |
$ |
188,244 |
||
Liabilities and Stockholders' Equity |
||||||
Liabilities |
||||||
Current liabilities |
||||||
Accounts payable |
$ |
16,325 |
$ |
16,393 |
||
Accrued expenses |
9,390 |
8,094 |
||||
Asset retirement obligations |
513 |
71 |
||||
Current portion of long-term debt |
5,000 |
5,000 |
||||
Other |
— |
287 |
||||
Total current liabilities |
31,228 |
29,845 |
||||
Asset retirement obligations |
12,656 |
12,707 |
||||
Long-term debt, net |
10,002 |
4,474 |
||||
Deferred tax liability |
3,537 |
109 |
||||
Other long-term liabilities |
155 |
— |
||||
Total liabilities |
57,578 |
47,135 |
||||
Commitments and contingencies |
— |
— |
||||
Stockholders' Equity |
||||||
Preferred stock, $0.01 par value |
— |
— |
||||
Common stock, $0.01 par value |
409 |
401 |
||||
Additional paid-in capital |
152,872 |
150,926 |
||||
Retained earnings (deficit) |
7,278 |
(10,218) |
||||
Total stockholders' equity |
160,559 |
141,109 |
||||
Total Liabilities and Stockholders' Equity |
$ |
218,137 |
$ |
188,244 |
||
Ramaco Resources, Inc. |
||||||
Six months ended June 30, |
||||||
In thousands |
2019 |
2018 |
||||
Cash flows from operating activities |
||||||
Net income |
$ |
17,496 |
$ |
15,470 |
||
Adjustments to reconcile net income (loss) to net cash from operating |
||||||
Accretion of asset retirement obligations |
256 |
247 |
||||
Depreciation and amortization |
8,938 |
5,393 |
||||
Amortization of debt issuance costs |
28 |
187 |
||||
Equity-based compensation |
1,954 |
1,245 |
||||
Deferred income taxes |
3,429 |
1,385 |
||||
Changes in operating assets and liabilities: |
||||||
Accounts receivable |
(15,370) |
(21,100) |
||||
Prepaid expenses |
1,550 |
(977) |
||||
Inventories |
(2,408) |
(1,237) |
||||
Advanced coal royalties |
(68) |
82 |
||||
Other assets |
135 |
(206) |
||||
Accounts payable |
(4,121) |
1,340 |
||||
Accrued expenses |
1,295 |
6,282 |
||||
Net cash from operating activities |
13,114 |
8,111 |
||||
Cash flow from investing activities: |
||||||
Purchases of property, plant and equipment |
(19,737) |
(27,478) |
||||
Proceeds from maturities of investment securities |
— |
5,200 |
||||
Net cash from investing activities |
(19,737) |
(22,278) |
||||
Cash flows from financing activities |
||||||
Proceeds from borrowings |
44,300 |
13,000 |
||||
Proceeds from notes payable - related party |
— |
3,000 |
||||
Payments of debt issuance cost |
— |
(429) |
||||
Repayment of borrowings |
(38,800) |
(1,000) |
||||
Repayments of financed insurance payable |
(287) |
(427) |
||||
Net cash from financing activities |
5,213 |
14,144 |
||||
Net change in cash and cash equivalents |
(1,410) |
(23) |
||||
Cash and cash equivalents, beginning of period |
6,951 |
5,934 |
||||
Cash and cash equivalents, end of period |
$ |
5,541 |
$ |
5,911 |
||
Reconciliation of Non-GAAP Measure
Adjusted EBITDA
Adjusted EBITDA is used as a supplemental non-GAAP financial measure by management and external users of our financial statements, such as industry analysts, investors, lenders and rating agencies. The Company believes Adjusted EBITDA is useful because it allows us to more effectively evaluate our operating performance.
We define Adjusted EBITDA as net income (loss) plus net interest expense, equity-based compensation, depreciation and amortization expenses and any transaction related costs. A reconciliation of income (loss) from continuing operations, net of income taxes to Adjusted EBITDA is included below. Adjusted EBITDA is not intended to serve as an alternative to U.S. GAAP measures of performance and may not be comparable to similarly-titled measures presented by other companies.
Three months ended June 30, |
Six months ended June 30, |
||||||||||||
(In thousands) |
2019 |
2018 |
2019 |
2018 |
|||||||||
Reconciliation of Net Income (Loss) to Adjusted EBITDA |
|||||||||||||
Net income (loss) |
$ |
10,613 |
$ |
10,204 |
$ |
17,496 |
$ |
15,470 |
|||||
Depreciation and amortization |
4,822 |
2,955 |
8,938 |
5,393 |
|||||||||
Interest expense (income), net |
302 |
314 |
609 |
414 |
|||||||||
Income taxes |
2,168 |
642 |
3,525 |
1,385 |
|||||||||
EBITDA |
17,905 |
14,115 |
30,568 |
22,662 |
|||||||||
Equity-based compensation |
1,060 |
694 |
1,954 |
1,245 |
|||||||||
Accretion of asset retirement obligation |
128 |
124 |
256 |
247 |
|||||||||
Adjusted EBITDA |
$ |
19,093 |
$ |
14,933 |
$ |
32,778 |
$ |
24,154 |
|||||
Non-GAAP revenue and cash cost per ton
Non-GAAP revenue per ton (FOB mine) is calculated as coal sales revenues less transportation costs, divided by tons sold. Non-GAAP cash cost per ton sold is calculated as cash cost of coal sales less transportation costs, divided by tons sold. We believe revenue per ton (FOB mine) and cash cost per ton provides useful information to investors as it enables investors to compare revenue per ton and cash cost per ton for the Company against similar measures made by other publicly-traded coal companies and more effectively monitor changes in coal prices and costs from period to period excluding the impact of transportation costs which are beyond our control. The adjustments made to arrive at these measures are significant in understanding and assessing the Company's financial condition. Revenue per ton sold (FOB mine) and cash cost per ton are not measures of financial performance in accordance with U.S. GAAP and therefore should not be considered as an alternative to revenues and cost of sales under U.S. GAAP. The tables below show how we calculate Non-GAAP revenue and cash cost per ton:
Non-GAAP revenue per ton
Three months ended June 30, 2019 |
Three months ended June 30, 2018 |
|||||||||||||||||
Company |
Purchased |
Company |
Purchased |
|||||||||||||||
Produced |
Coal |
Total |
Produced |
Coal |
Total |
|||||||||||||
In thousands, except per ton amounts |
||||||||||||||||||
Revenues |
$ |
62,516 |
$ |
3,245 |
$ |
65,761 |
$ |
52,051 |
$ |
13,227 |
$ |
65,278 |
||||||
Less: Adjustments to reconcile to Non- |
||||||||||||||||||
Transportation costs |
4,695 |
42 |
4,737 |
7,118 |
808 |
7,926 |
||||||||||||
Non-GAAP revenues (FOB mine) |
$ |
57,821 |
$ |
3,203 |
$ |
61,024 |
$ |
44,933 |
$ |
12,419 |
$ |
57,352 |
||||||
Tons sold |
499 |
26 |
525 |
493 |
123 |
616 |
||||||||||||
Revenues per ton sold (FOB mine) |
$ |
116 |
$ |
123 |
$ |
116 |
$ |
91 |
$ |
101 |
$ |
93 |
||||||
Three months ended March 31, 2019 |
|||||||||
Company |
Purchased |
||||||||
Produced |
Coal |
Total |
|||||||
(In thousands, except per ton amounts) |
|||||||||
Revenues |
$ |
52,486 |
$ |
4,974 |
$ |
57,460 |
|||
Less: Adjustments to reconcile to Non-GAAP |
|||||||||
Transportation costs |
6,636 |
531 |
7,167 |
||||||
Non-GAAP revenues (FOB mine) |
$ |
45,850 |
$ |
4,443 |
$ |
50,293 |
|||
Tons sold |
443 |
35 |
478 |
||||||
Revenues per ton sold (FOB mine) |
$ |
104 |
$ |
127 |
$ |
105 |
|||
Six months ended June 30, 2019 |
Six months ended June 30, 2018 |
|||||||||||||||||
Company |
Purchased |
Company |
Purchased |
|||||||||||||||
(In thousands, except per ton amounts) |
Produced |
Coal |
Total |
Produced |
Coal |
Total |
||||||||||||
Revenues |
$ |
115,216 |
$ |
8,005 |
$ |
123,221 |
$ |
95,009 |
$ |
26,212 |
$ |
121,221 |
||||||
Less: Adjustments to reconcile to Non- |
||||||||||||||||||
Transportation costs |
11,646 |
373 |
12,019 |
13,224 |
1,955 |
15,179 |
||||||||||||
Non-GAAP revenues (FOB mine) |
$ |
103,570 |
$ |
7,632 |
$ |
111,202 |
$ |
81,785 |
$ |
24,257 |
$ |
106,042 |
||||||
Tons sold |
942 |
61 |
1,003 |
896 |
241 |
1,137 |
||||||||||||
Revenues per ton sold (FOB mine) |
$ |
110 |
$ |
125 |
$ |
111 |
$ |
91 |
$ |
101 |
$ |
93 |
||||||
Non-GAAP cash cost per ton
Three months ended June 30, 2019 |
Three months ended June 30, 2018 |
|||||||||||||||||
Company |
Purchased |
Company |
Purchased |
|||||||||||||||
Produced |
Coal |
Total |
Produced |
Coal |
Total |
|||||||||||||
In thousands, except per ton amounts |
||||||||||||||||||
Cost of sales |
$ |
39,811 |
$ |
3,408 |
$ |
43,219 |
$ |
34,739 |
$ |
13,121 |
$ |
47,860 |
||||||
Less: Adjustments to reconcile to Non- |
||||||||||||||||||
Transportation costs |
4,504 |
234 |
4,738 |
7,360 |
868 |
8,228 |
||||||||||||
Non-GAAP cash cost of coal sales |
$ |
35,307 |
$ |
3,174 |
$ |
38,481 |
$ |
27,379 |
$ |
12,253 |
$ |
39,632 |
||||||
Tons sold |
499 |
26 |
525 |
493 |
123 |
616 |
||||||||||||
Cash cost per ton sold |
$ |
71 |
$ |
122 |
$ |
73 |
$ |
56 |
$ |
100 |
$ |
64 |
||||||
Three months ended March 31, 2019 |
|||||||||
Company |
Purchased |
||||||||
Produced |
Coal |
Total |
|||||||
(In thousands, except per ton amounts) |
|||||||||
Cost of sales(a) |
$ |
36,710 |
$ |
4,296 |
$ |
41,006 |
|||
Less: Adjustments to reconcile to Non-GAAP |
|||||||||
Transportation costs |
6,636 |
531 |
7,167 |
||||||
Non-GAAP cash cost of coal sales |
$ |
30,074 |
$ |
3,765 |
$ |
33,839 |
|||
Tons sold |
443 |
35 |
478 |
||||||
Cash cost per ton sold |
$ |
68 |
$ |
108 |
$ |
71 |
|||
Six months ended June 30, 2019 |
Six months ended June 30, 2018 |
|||||||||||||||||
Company |
Purchased |
Company |
Purchased |
|||||||||||||||
Produced |
Coal |
Total |
Produced |
Coal |
Total |
|||||||||||||
(In thousands, except per ton amounts) |
||||||||||||||||||
Cost of sales |
$ |
76,914 |
$ |
7,311 |
$ |
84,225 |
$ |
67,174 |
$ |
25,017 |
$ |
92,191 |
||||||
Less: Adjustments to reconcile to Non- |
||||||||||||||||||
Transportation costs |
11,646 |
373 |
12,019 |
13,722 |
2,089 |
15,811 |
||||||||||||
Non-GAAP cash cost of coal sales |
$ |
65,268 |
$ |
6,938 |
$ |
72,206 |
$ |
53,452 |
$ |
22,928 |
$ |
76,380 |
||||||
Tons sold |
942 |
61 |
1,003 |
896 |
241 |
1,137 |
||||||||||||
Cash cost per ton sold |
$ |
69 |
$ |
114 |
$ |
72 |
$ |
60 |
$ |
95 |
$ |
67 |
||||||
We do not provide reconciliations of our outlook for cash cost per ton to cost of sales in reliance on the unreasonable efforts exception provided for under Item 10(e)(1)(i)(B) of Regulation S-K. We are unable, without unreasonable efforts, to forecast certain items required to develop the meaningful comparable GAAP cost of sales. These items typically include non-cash asset retirement obligation accretion expenses, mine idling expenses and other non-recurring indirect mining expenses that are difficult to predict in advance in order to include a GAAP estimate.
# # #
POINT OF CONTACT:
Jeremy Sussman, Chief Financial Officer
[email protected]
859-244-7455
SOURCE Ramaco Resources
Related Links
http://www.ramacoresources.com
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