LEXINGTON, Ky., March 19, 2019 /PRNewswire/ -- Ramaco
Resources, Inc. (NASDAQ: METC) ("Ramaco," "Ramaco Resources" or the
"Company") today reported annual net income of $25.1 million, or $0.62 per diluted share for the year ended
December 31, 2018, as compared to a
net loss of $15.4 million in 2017.
The Company's adjusted earnings before interest, taxes,
depreciation, amortization and equity-based compensation expenses
("Adjusted EBITDA") was $42.2
million for the year ended December
31,2018, as compared with Adjusted EBITDA loss of
$9.3 million in 2017.
For the fourth quarter of 2018, Ramaco reported net income of
$3.4 million, or $0.08 per diluted share, compared with a net
income of $6.2 million, or
$0.15 per diluted share for the third
quarter of 2018. The Company's Adjusted EBITDA for the
fourth quarter was $7.0 million
compared with Adjusted EBITDA of $11.0
million for the third quarter of 2018.
Full Year 2018 Summary
Full year 2018 revenues of $227.6
million were up 273% over 2017. Company production was 1.8
million tons in 2018, compared to 0.5 million tons in 2017, an
increase of 260%. Cash margins on Company produced and sold coal
improved to a profit of $29 per ton
in 2018 versus a loss of $7 per ton
in 2017. Cash mine costs per ton on company produced and sold coal
decreased by 14% to $63 in 2018 from
$73 in 2017. Net income for 2018 was
$25.1 million, compared to a net loss
of $15.4 million in 2017 or an
increase of $40.5 million. The
Company's Adjusted EBITDA was $42.2
million for 2018, compared with a loss of $9.3 million in 2017 for an increase of
$51.5 million.
Fourth Quarter 2018 Summary
Fourth quarter 2018 revenues were $44.2
million, a decline of 29% compared to the third quarter of
2018, as the fourth quarter results were negatively impacted by the
previously announced Elk Creek
silo failure. Company production was 423,000 tons in the fourth
quarter, compared to 449,000 tons in the third quarter. Cash
margins on Company produced and sold coal however, improved by 12%
from approximately $25 per ton in the
third quarter to approximately $28
per ton in the fourth quarter. Cash mine costs per ton on Company
produced and sold coal were $68 in
the fourth quarter compared to $65 in
the third quarter.
Randall Atkins, Ramaco Resources'
Executive Chairman and Chief Financial Officer remarked, "We were
challenged by the silo failure at our Elk
Creek mining complex in the middle of the fourth quarter,
which caused us to idle our prep plant there for approximately
three weeks starting in November
2018. Our fourth quarter results were impacted accordingly,
but were much better than anticipated immediately after the silo
failure. Sales volumes for the fourth quarter were down 32%
compared to the third quarter. As we announced in December, our
team successfully completed a temporary conveying system three
weeks after the incident that allowed us to begin processing coal
at approximately 80% of total plant capacity. We now expect to
operate at full capacity in the second quarter of 2019."
"Despite the fourth quarter, our year end 2018 results were
extremely positive year over year in almost all financial and
operating metrics. We had a $40.5
million positive swing in net income and over a $50 million increase in EBITDA. Both cash mining
costs per ton and capital expenditure levels fell meaningfully,
while production was up over 200%."
Additional Financial Results
The Company ended the quarter with approximately $7.0 million of cash on hand, $10.7 million of accounts receivable and
$26.4 million of availability under
the Revolving Credit Facility. Free cash flow generated during
2019, as well as borrowings available through the Revolving Credit
Facility, are expected to be used to fund working capital and
capital expenditures.
In the fourth quarter of 2018, the Company recorded an income
tax benefit of $1.3 million for an annual effective tax rate
of approximately 0.5% for 2018. Cash taxes payable for 2018
were less than $0.4 million.
Capital expenditures totaled approximately $8.3 million during the fourth quarter of
2018. We ended 2018 with $48.1
million in capital expenditures for the full year, a decline
from $75 million in 2017.
Operational Results
The exhibit below summarizes some of the key sales, production
and financial metrics for the periods noted:
|
Three months
ended
|
|
Year
ended
|
In thousands,
except per ton amounts
|
December
31,
2018
|
|
September
30,
2018
|
|
December
31,
2018
|
Sales
Volume
|
|
|
|
|
|
Company
|
315
|
|
510
|
|
1,721
|
Purchased
|
95
|
|
90
|
|
427
|
Total
|
410
|
|
600
|
|
2,148
|
|
|
|
|
|
|
Company
Production
|
|
|
|
|
|
Elk Creek Mining
Complex
|
408
|
|
422
|
|
1,669
|
Berwind Development
Deep Mine
|
15
|
|
27
|
|
81
|
Total
|
423
|
|
449
|
|
1,750
|
|
|
|
|
|
|
Company Financial
Metrics(a)
|
|
|
|
|
|
Average revenue per
ton
|
$
96
|
|
$
90
|
|
$
92
|
Average cash costs of
coal sold
|
$
68
|
|
$
65
|
|
$
63
|
Average cash margin
per ton
|
$
28
|
|
$
25
|
|
$
29
|
|
|
|
|
|
|
Elk Creek Financial
Metrics(a)
|
|
|
|
|
|
Average revenue per
ton
|
$
94
|
|
$
89
|
|
$
90
|
Average cash costs of
coal sold
|
$
63
|
|
$
64
|
|
$
60
|
Average cash margin
per ton
|
$
31
|
|
$
25
|
|
$
30
|
|
|
|
|
|
|
Berwind Development
Deep Mine Financial
Metrics(a)
|
|
|
|
|
|
Average revenue per
ton
|
$
127
|
|
$
114
|
|
$
119
|
Average cash costs of
coal sold
|
$
144
|
|
$
108
|
|
$
127
|
Average cash margin
per ton
|
$
(17)
|
|
$
6
|
|
$
(8)
|
|
|
|
|
|
|
Purchased Coal
Financial Metrics(a)
|
|
|
|
|
|
Average revenue per
ton
|
$
103
|
|
$
101
|
|
$
101
|
Average cash costs of
coal sold
|
$
97
|
|
$
97
|
|
$
95
|
Average cash margin
per ton
|
$
6
|
|
$
4
|
|
$
6
|
|
|
|
|
|
|
Capital
Expenditures
|
$
8,254
|
|
$
12,405
|
|
$
48,137
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Excludes
transportation.
|
|
|
|
|
|
2019 Outlook
"We are excited about Ramaco's long-term prospects for growth,
free cash flow generation and ultimately the ability to return cash
to shareholders through regular dividends." Randall Atkins said. "In 2019, we expect to
produce 2.0 million tons of met coal at the midpoint of guidance,
up approximately 14% from 2018 levels. We ended 2018 with overall
average costs of roughly $63 per ton,
allocated as $60 per ton average cost
at Elk Creek and $127 per ton at our Berwind development mine."
"In 2019, it will be important for investors to focus on the
cost difference between the two complexes. At Berwind, we will still be in development mode
in 2019, mining approximately 250,000 tons in thin seam conditions
in the Pocahontas #3 seam, until
we reach the thicker roughly 60" Pocahontas #4 low-vol coal seam by 2020. At
full capacity, we expect Berwind
mine costs to be closer to $80 per
ton and production at roughly 750,000 tons. At today's pricing,
we'd ultimately anticipate Berwind
cash margins at that point to be similar to Elk Creek."
"At Elk Creek, we expect costs this year in the mid-$60s per ton
range, with the increase mainly caused by higher-sales related
costs associated with improved sales realizations. As Berwind ramps up production, and Elk Creek continues to produce as expected,
even without any proposed development activities, we hope to reach
a 2.5 million ton annual production rate in 2020 which should
increase to approximately 4.5 million tons by 2023 through
investments in organic growth at our existing properties. As
production increases, we anticipate exploring with our Board the
possibility of returning cash to shareholders in the form of a
recurring dividend."
Michael Bauersachs, Ramaco
Resources' President and CEO commented, "As we start 2019, we are
very encouraged and anticipate a strong year. We look forward to
eliminating the side effects of the silo collapse early in the
year. On marketing, we have sold forward approximately 2.0 million
tons domestically and for export at both fixed and indexed prices.
Thus far our mine productivity levels at Elk Creek have been strong in 2019, however
produced and sold tons have been negatively impacted by high
inventories and limited plant capacity. We also expect currently
budgeted 2019 capital expenditures to decline to roughly
$35-40 million."
"Our development mine at Berwind has overcome some geological issues
encountered in 2018 and should complete its path to the low cost,
thicker seam Pocahontas #4 seam by
next year. Our confidence in reaching the bottom slope location at
Berwind has substantially improved
due to positive data obtained from drilling multiple horizontal
long hole boreholes in advance of our projections in order to
confirm that our mining route is free from sandstone."
"We are also seeking opportunities to expand production. While
our route to full production rate of roughly 4.5 million tons will
be different than we originally modeled years ago, we indeed have a
good roadmap of internal production and productivity enhancements
to reach that level. Knox Creek is most likely our next development
project due to positive results from our recent exploration work to
define access to the Jawbone seam through the Tiller seam, where we
project the potential for approximately 500,000 tons per year of
additional High Vol A production. We also are exploring ways to
increase throughput levels at the Elk
Creek preparation plant by as much as 500,000 tons annually
beyond its current nameplate capacity. If we did that, we would
accelerate some of the permitted production at Elk Creek that we currently have projected in
2020 and 2021. We will continue examining both these opportunities
as the year progresses."
|
|
2019 Estimated
Production, Sales, Cost and Capital Expenditure
Guidance
|
(In thousands,
except per ton amounts)
|
|
|
|
|
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
|
|
1,900
|
-
|
2,250
|
|
2,066
|
Steam
|
|
100
|
-
|
150
|
|
82
|
|
|
2,000
|
-
|
2,400
|
|
2,148
|
Cost Per
Ton
|
|
|
|
|
|
|
Elk Creek
|
|
$63
|
-
|
$69
|
|
$60
|
Berwind Development
Deep Mine
|
|
$115
|
-
|
$135
|
|
$127
|
|
|
|
|
|
|
|
Capital
Expenditures
|
|
$35,000
|
-
|
$40,000
|
|
$48,137
|
|
|
Committed 2019
Sales Volume (a)
|
(In thousands,
except per ton amounts)
|
|
|
|
|
Volume
|
Average
Price
|
|
Company:
|
|
|
|
|
Domestic, fixed
priced
|
|
1,519
|
$113
|
|
Export, fixed
priced
|
|
109
|
$122
|
|
Total, fixed
priced
|
|
1,628
|
$113
|
|
|
|
|
|
Domestic,
indexed
|
|
230
|
|
Export,
indexed
|
|
116
|
|
Total, indexed
priced
|
|
346
|
|
Total Committed
Company Tons
|
|
1,974
|
|
(a) As of March
18, 2019
|
|
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.
Fourth Quarter Earnings Conference Call
Ramaco Resources will hold its quarterly conference call and
webcast at 9:00 AM Eastern Time (ET)
on Wednesday, March 20, 2019 to present its results for the
fourth quarter and full year 2018.
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/m6/p/odzd388y.
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 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.
|
Consolidated
Statements of Operations
|
|
|
|
|
|
|
|
Three months
ended
|
|
December 31,
2018
|
|
September 30,
2018
|
|
December 31,
2017
|
In thousands,
except per share amounts
|
|
|
|
|
|
Revenues
|
$
44,187
|
|
$
62,166
|
|
$
24,019
|
|
|
|
|
|
|
Cost and
expenses
|
|
|
|
|
|
Cost of sales
(exclusive of items shown separately
below)
|
34,958
|
|
49,406
|
|
21,374
|
Other operating
costs and expenses
|
—
|
|
—
|
|
32
|
Asset
retirement obligation accretion
|
123
|
|
123
|
|
101
|
Depreciation
and amortization
|
3,682
|
|
3,348
|
|
1,819
|
Selling,
general and administrative
|
3,399
|
|
3,485
|
|
3,350
|
Total cost and
expenses
|
42,162
|
|
56,362
|
|
26,676
|
|
|
|
|
|
|
Operating income
(loss)
|
2,025
|
|
5,804
|
|
(2,657)
|
|
|
|
|
|
|
Interest and dividend
income
|
10
|
|
23
|
|
3
|
Other
income
|
479
|
|
1,036
|
|
54
|
Interest
expense
|
(456)
|
|
(589)
|
|
—
|
|
|
|
|
|
|
Income (loss)
before taxes
|
2,058
|
|
6,274
|
|
(2,600)
|
|
|
|
|
|
|
Income tax expense
(benefit)
|
(1,336)
|
|
63
|
|
—
|
|
|
|
|
|
|
Net income
(loss)
|
$
3,394
|
|
$
6,211
|
|
$
(2,600)
|
|
|
|
|
|
|
Basic and diluted
earnings (loss) per share
|
|
|
|
|
|
Basic
|
$
0.08
|
|
$
0.15
|
|
$
(0.07)
|
Diluted
|
$
0.08
|
|
$
0.15
|
|
$
(0.07)
|
|
|
|
|
|
|
Weighted average
common shares outstanding
|
|
|
|
|
|
Basic
|
40,082
|
|
40,082
|
|
37,578
|
Diluted
|
40,230
|
|
40,239
|
|
37,578
|
Ramaco Resources,
Inc.
|
Consolidated
Statements of Operations
|
|
|
|
|
|
Years ended
December 31,
|
In thousands,
except per share amounts
|
2018
|
|
2017
|
Revenue
|
|
|
|
Coal
sales
|
$
227,574
|
|
$
58,798
|
Coal
processing
|
—
|
|
2,238
|
Total
revenue
|
227,574
|
|
61,036
|
Cost and
expenses
|
|
|
|
Cost of coal
sales (exclusive of items shown separately below)
|
176,555
|
|
58,308
|
Cost of coal
processing (exclusive of items shown separately below)
|
—
|
|
2,213
|
Other operating
costs and expenses
|
—
|
|
258
|
Asset
retirement obligation accretion
|
494
|
|
405
|
Depreciation
and amortization
|
12,423
|
|
3,154
|
Selling,
general and administrative
|
14,006
|
|
12,591
|
Total cost and
expenses
|
203,478
|
|
76,929
|
Operating income
(loss)
|
24,096
|
|
(15,893)
|
Interest and dividend
income
|
36
|
|
295
|
Other
income
|
2,518
|
|
204
|
Interest
expense
|
(1,463)
|
|
(23)
|
Income (loss)
before tax
|
25,187
|
|
(15,417)
|
Income tax
expense
|
113
|
|
—
|
Net income
(loss)
|
$
25,074
|
|
$
(15,417)
|
|
|
|
|
Earnings (loss)
per common share
|
|
|
|
Basic earnings (loss)
per share
|
$
0.63
|
|
$
(0.41)
|
Diluted earnings
(loss) per share
|
$
0.62
|
|
$
(0.41)
|
|
|
|
|
Basic weighted
average shares outstanding
|
40,039
|
|
37,578
|
Diluted weighted
average shares outstanding
|
40,263
|
|
37,578
|
Ramaco Resources,
Inc.
Consolidated
Balance Sheets
|
|
|
December
31,
|
In
thousands
|
2018
|
|
2017
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
6,951
|
|
$
5,934
|
Short-term
investments
|
—
|
|
5,200
|
Accounts
receivable
|
10,729
|
|
7,166
|
Inventories
|
14,185
|
|
10,058
|
Prepaid
expenses
|
3,154
|
|
1,104
|
Total current
assets
|
35,019
|
|
29,462
|
|
|
|
|
Property, plant and
equipment – net
|
149,205
|
|
115,451
|
|
|
|
|
Advanced coal
royalties
|
3,045
|
|
2,867
|
Other
|
975
|
|
318
|
Total
Assets
|
$
188,244
|
|
$
148,098
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
Liabilities
|
|
|
|
Current
liabilities
|
|
|
|
Accounts
payable
|
$
16,393
|
|
$
19,533
|
Accrued
expenses
|
8,094
|
|
2,821
|
Asset
retirement obligations
|
71
|
|
71
|
Current portion
of long-term debt
|
5,000
|
|
—
|
Financed
insurance payable
|
287
|
|
—
|
Total current
liabilities
|
29,845
|
|
22,425
|
Asset retirement
obligations
|
12,707
|
|
12,276
|
Long-term
debt
|
4,474
|
|
—
|
Deferred tax
liability
|
109
|
|
—
|
Total
liabilities
|
47,135
|
|
34,701
|
|
|
|
|
Commitments and
contingencies
|
—
|
|
—
|
|
|
|
|
Stockholders'
Equity
|
|
|
|
Common
stock
|
401
|
|
396
|
Additional paid-in
capital
|
150,926
|
|
148,293
|
Accumulated
deficit
|
(10,218)
|
|
(35,292)
|
Total
equity
|
141,109
|
|
113,397
|
Total Liabilities
and Stockholders' Equity
|
$
188,244
|
|
$
148,098
|
Ramaco Resources,
Inc.
Statement of Cash
Flows
|
|
|
Years ended
December 31,
|
|
In
thousands
|
2018
|
|
2017
|
|
Cash flows from
operating activities
|
|
|
|
|
Net income
(loss)
|
$
25,074
|
|
$
(15,417)
|
|
Adjustments to
reconcile net income (loss) to net cash
from operating activities:
|
|
|
|
|
Accretion of asset
retirement obligations
|
494
|
|
405
|
|
Depreciation and
amortization
|
12,423
|
|
3,154
|
|
Amortization of debt
issuance costs
|
569
|
|
—
|
|
Costs associated with
abandoned offering
|
—
|
|
—
|
|
Equity-based
compensation
|
2,638
|
|
2,820
|
|
Deferred income
taxes
|
109
|
|
—
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
Accounts
receivable
|
(3,563)
|
|
(6,251)
|
|
Prepaid
expenses
|
(774)
|
|
(715)
|
|
Inventories
|
(4,127)
|
|
(8,539)
|
|
Other
assets
|
(835)
|
|
(1,114)
|
|
Accounts
payable
|
(1,521)
|
|
15,535
|
|
Accrued
expenses
|
5,551
|
|
1,369
|
|
Net cash from
operating activities
|
36,038
|
|
(8,753)
|
|
|
|
|
|
|
Cash flow from
investing activities:
|
|
|
|
|
Acquisition of
Knox Creek
|
—
|
|
—
|
|
Purchases of
property, plant and equipment
|
(48,137)
|
|
(75,039)
|
|
Purchase of
investment securities
|
—
|
|
—
|
|
Proceeds from
maturities of investment securities
|
5,200
|
|
55,237
|
|
Net cash from
investing activities
|
(42,937)
|
|
(19,802)
|
|
|
|
|
|
|
Cash flows from
financing activities
|
|
|
|
|
Proceeds from
notes payable
|
13,000
|
|
—
|
|
Proceeds from
notes payable - related party
|
3,000
|
|
—
|
|
Proceeds from
borrowings
|
15,424
|
|
—
|
|
Payments of
debt issuance cost
|
(569)
|
|
|
|
Repayment of
notes payable
|
(13,000)
|
|
(500)
|
|
Repayment of
notes payable - related party
|
(3,000)
|
|
|
|
Repayments of
borrowings
|
(5,950)
|
|
—
|
|
Proceeds from
issuance of common stock
|
—
|
|
47,709
|
|
Payments of
equity offering costs
|
—
|
|
(1,756)
|
|
Proceeds from
issuance of Series A preferred units
|
—
|
|
—
|
|
Offering costs
for Series A preferred units
|
—
|
|
—
|
|
Advances from
Ramaco Coal, LLC
|
—
|
|
—
|
|
Repayments to
Ramaco Coal, LLC
|
—
|
|
(10,629)
|
|
Repayments of
financed insurance payable
|
(989)
|
|
(127)
|
|
Payment of
distributions
|
—
|
|
(5,405)
|
|
Contributed
capital from members
|
—
|
|
—
|
|
Net cash from
financing activities
|
7,916
|
|
29,292
|
|
|
|
|
|
|
Net change in cash
and cash equivalents
|
1,017
|
|
737
|
|
Cash and cash
equivalents, beginning of year
|
5,934
|
|
5,197
|
|
Cash and cash
equivalents, end of year
|
$
6,951
|
|
$
5,934
|
|
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
|
(In
thousands)
|
December 31,
2018
|
|
September 30,
2018
|
|
December 31,
2017
|
Reconciliation of
Net Income (Loss) to Adjusted EBITDA
|
|
|
|
|
|
Net income
(loss)
|
$
3,394
|
|
$
6,211
|
|
$
(2,600)
|
Depreciation
and amortization
|
3,682
|
|
3,348
|
|
1,819
|
Interest and
dividend income, net
|
446
|
|
566
|
|
(3)
|
Income
taxes
|
(1,336)
|
|
63
|
|
—
|
EBITDA
|
6,186
|
|
10,188
|
|
(784)
|
Equity-based
compensation
|
698
|
|
695
|
|
355
|
Accretion of
asset retirement obligation
|
123
|
|
123
|
|
101
|
Adjusted
EBITDA
|
$
7,007
|
|
$
11,006
|
|
$
(328)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended
December 31,
|
|
|
|
2018
|
|
2017
|
|
|
(In
thousands)
|
|
|
|
|
|
Reconciliation of
Net Income (Loss) to Adjusted EBITDA
|
|
|
|
|
|
Net income
(loss)
|
$
25,074
|
|
$
(15,417)
|
|
|
Depreciation
and amortization
|
12,423
|
|
3,154
|
|
|
Interest
expense (income), net
|
1,427
|
|
(272)
|
|
|
Income
taxes
|
113
|
|
—
|
|
|
EBITDA
|
39,037
|
|
(12,535)
|
|
|
Equity-based
compensation
|
2,638
|
|
2,820
|
|
|
Accretion of
asset retirement obligation
|
494
|
|
405
|
|
|
Adjusted
EBITDA
|
$
42,169
|
|
$
(9,310)
|
|
|
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
December 31, 2018
|
|
Three Months
September 30, 2018
|
Total Company
Produced
|
|
Company
Produced
|
|
Purchased
Coal
|
|
Total
|
|
Company
Produced
|
|
Purchased
Coal
|
|
Total
|
(In thousands,
except per ton amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
(a)
|
|
$
33,342
|
|
$
10,845
|
|
$
44,187
|
|
$
51,963
|
|
$
10,203
|
|
$
62,166
|
Less:
Adjustments to reconcile to
Non-GAAP revenues (FOB mine)
|
|
|
|
|
|
|
|
|
|
|
|
|
Transportation costs
|
|
3,108
|
|
1,013
|
|
4,121
|
|
6,185
|
|
1,091
|
|
7,276
|
Non-GAAP
revenues (FOB mine)
|
|
$
30,234
|
|
$
9,832
|
|
$
40,066
|
|
$
45,778
|
|
$
9,112
|
|
$
54,890
|
Tons
sold
|
|
315
|
|
95
|
|
410
|
|
510
|
|
90
|
|
600
|
Revenues per ton sold
(FOB mine)
|
|
$
96
|
|
$
103
|
|
$
98
|
|
$
90
|
|
$
101
|
|
$
91
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
December 31, 2018
|
|
|
|
|
|
|
|
|
Company
Produced
|
|
Purchased
Coal
|
|
Total
|
|
|
|
|
|
|
(In thousands,
except per ton amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
(a)
|
|
$
179,078
|
|
$
48,496
|
|
$
227,574
|
|
|
|
|
|
|
Less:
Adjustments to reconcile to
Non-GAAP revenues (FOB mine)
|
|
|
|
|
|
|
|
|
|
|
|
|
Transportation costs
|
|
21,281
|
|
5,276
|
|
26,557
|
|
|
|
|
|
|
Non-GAAP
revenues (FOB mine)
|
|
$
157,797
|
|
$
43,220
|
|
$
201,017
|
|
|
|
|
|
|
Tons
sold
|
|
1,721
|
|
427
|
|
2,148
|
|
|
|
|
|
|
Revenues per ton sold
(FOB mine)
|
|
$
92
|
|
$
101
|
|
$
94
|
|
|
|
|
|
|
|
|
Three Months
December 31, 2018
|
|
Three Months
September 30, 2018
|
|
|
Elk
Creek
|
|
Berwind
|
|
Total
Company
Produced
|
|
Elk
Creek
|
|
Berwind
|
|
Total
Company
Produced
|
(In thousands,
except per ton amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
(a)
|
|
$
30,886
|
|
$
2,456
|
|
$
33,342
|
|
$
49,128
|
|
$
2,785
|
|
$
51,913
|
Less:
Adjustments to reconcile to
Non-GAAP revenues (FOB mine)
|
|
|
|
|
|
|
|
|
|
|
|
|
Transportation
costs
|
|
2,930
|
|
178
|
|
3,108
|
|
5,918
|
|
267
|
|
6,185
|
Non-GAAP
revenues (FOB mine)
|
|
$
27,956
|
|
$
2,278
|
|
$
30,234
|
|
$
43,210
|
|
$
2,518
|
|
$
45,728
|
Tons
sold
|
|
297
|
|
18
|
|
315
|
|
488
|
|
22
|
|
510
|
Revenues per ton sold
(FOB mine)
|
|
$
94
|
|
$
127
|
|
$
96
|
|
$
89
|
|
$
114
|
|
$
90
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
December 31, 2018
|
|
|
|
|
|
|
|
|
Elk
Creek
|
|
Berwind
|
|
Total
Company
Produced
|
|
|
|
|
|
|
(In thousands,
except per ton amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
(a)
|
|
$
169,959
|
|
$
9,119
|
|
$
179,078
|
|
|
|
|
|
|
Less:
Adjustments to reconcile to
Non-GAAP revenues (FOB mine)
|
|
|
|
|
|
|
|
|
|
|
|
|
Transportation
costs
|
|
20,428
|
|
853
|
|
21,281
|
|
|
|
|
|
|
Non-GAAP
revenues (FOB mine)
|
|
$
149,531
|
|
$
8,266
|
|
$
157,797
|
|
|
|
|
|
|
Tons
sold
|
|
1,652
|
|
69
|
|
1,721
|
|
|
|
|
|
|
Revenues per ton sold
(FOB mine)
|
|
$
90
|
|
$
119
|
|
$
92
|
|
|
|
|
|
|
Non-GAAP cash cost per ton
|
Three months ended
December 31, 2018
|
|
Three months ended
September 30, 2018
|
|
Company
Produced
|
|
Purchased
Coal
|
|
Total
|
|
Company
Produced
|
|
Purchased
Coal
|
|
Total
|
(In thousands,
except per ton amounts)
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
sales(a)
|
$
24,521
|
|
$
10,437
|
|
$
34,958
|
|
$
39,584
|
|
$
9,823
|
|
$
49,407
|
Less:
Adjustments to reconcile to
Non-GAAP cash cost of coal sales
|
|
|
|
|
|
|
|
|
|
|
|
Transportation
costs
|
3,049
|
|
1,197
|
|
4,246
|
|
6,227
|
|
1,116
|
|
7,343
|
Non-GAAP cash
cost of coal sales
|
$
21,472
|
|
$
9,240
|
|
$
30,712
|
|
$
33,357
|
|
$
8,707
|
|
$
42,064
|
Tons
sold
|
315
|
|
95
|
|
410
|
|
510
|
|
90
|
|
600
|
Cash cost per ton
sold
|
$
68
|
|
$
97
|
|
$
75
|
|
$
65
|
|
$
97
|
|
$
70
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended
December 31, 2018
|
|
|
|
|
|
|
|
Company
Produced
|
|
Purchased
Coal
|
|
Total
|
|
|
|
|
|
|
(In thousands,
except per ton amounts)
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
sales(a)
|
$
130,326
|
|
$
46,229
|
|
$
176,555
|
|
|
|
|
|
|
Less:
Adjustments to reconcile to
Non-GAAP cash cost of coal sales
|
|
|
|
|
|
|
|
|
|
|
|
Transportation
costs
|
21,787
|
|
5,613
|
|
27,400
|
|
|
|
|
|
|
Non-GAAP cash
cost of coal sales
|
$
108,539
|
|
$
40,616
|
|
$
149,155
|
|
|
|
|
|
|
Tons
sold
|
1,721
|
|
427
|
|
2,148
|
|
|
|
|
|
|
Cash cost per ton
sold
|
$
63
|
|
$
95
|
|
$
69
|
|
|
|
|
|
|
|
|
Three months ended
December 31, 2018
|
|
Three months ended
September 30, 2018
|
|
|
Elk
Creek
|
|
Berwind
|
|
Total
Company
Produced
|
|
Elk
Creek
|
|
Berwind
|
|
Total
Company
Produced
|
(In thousands,
except per ton amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
sales(a)
|
|
$
21,747
|
|
$
2,774
|
|
$
24,521
|
|
$
36,946
|
|
$
2,638
|
|
$
39,584
|
Less:
Adjustments to reconcile to
Non-GAAP cash cost of coal sales
|
|
|
|
|
|
|
|
|
|
|
|
|
Transportation
costs
|
|
2,875
|
|
174
|
|
3,049
|
|
5,958
|
|
269
|
|
6,227
|
Non-GAAP cash
cost of coal sales
|
|
$
18,872
|
|
$
2,600
|
|
$
21,472
|
|
$
30,988
|
|
$
2,369
|
|
$
33,357
|
Tons
sold
|
|
297
|
|
18
|
|
315
|
|
488
|
|
22
|
|
510
|
Cash cost per ton
sold
|
|
$
63
|
|
$
144
|
|
$
68
|
|
$
64
|
|
$
108
|
|
$
65
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended
December 31, 2018
|
|
|
|
|
|
|
|
|
Elk
Creek
|
|
Berwind
|
|
Total
Company
Produced
|
|
|
|
|
|
|
(In thousands,
except per ton amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
sales(a)
|
|
$
120,655
|
|
$
9,671
|
|
$
130,326
|
|
|
|
|
|
|
Less:
Adjustments to reconcile to
Non-GAAP cash cost of coal sales
|
|
|
|
|
|
|
|
|
|
|
|
|
Transportation
costs
|
|
20,913
|
|
874
|
|
21,787
|
|
|
|
|
|
|
Non-GAAP cash
cost of coal sales
|
|
$
99,742
|
|
$
8,797
|
|
$
108,539
|
|
|
|
|
|
|
Tons
sold
|
|
1,652
|
|
69
|
|
1,721
|
|
|
|
|
|
|
Cash cost per ton
sold
|
|
$
60
|
|
$
127
|
|
$
63
|
|
|
|
|
|
|
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.
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SOURCE Ramaco Resources