Ramaco Resources(METC)2024-11-08 21:54Revenue Performance - The company sold 2.9 million tons of coal during the first nine months of 2024, generating $495.4 million in revenue, a slight increase from $490.8 million in the same period of 2023[96]. - Revenue for the three months ended September 30, 2024, was $167.4 million, approximately 10% lower than the same period in 2023, driven by a 13% decrease in revenue per ton sold from $188 to $164[103]. - Coal sales revenue for the nine months ended September 30, 2024 was $495.4 million, approximately 1% higher than the same period in 2023, driven by a 16% increase in tons sold[111]. - Non-GAAP revenue (FOB mine) for the three months ended September 30, 2024, was $138,829,000, down from $156,533,000 in the prior year, reflecting a decrease of $17,704,000[138]. - Non-GAAP revenue (FOB mine) for the nine months ended September 30, 2024, was $414,317,000, slightly down from $416,185,000 in the same period of 2023, a decrease of $1,868,000[138]. Cost and Expenses - The cost of sales for the three months ended September 30, 2024, was $134.7 million, down from $144.6 million in the same period of 2023, reflecting a decrease in total cost of sales per ton sold from $145 to $132[102]. - Cost of coal sales for the nine months ended September 30, 2024 totaled $397.2 million, a 12% increase compared to $354.4 million for the same period in 2023[113]. - Non-GAAP cash cost of sales for the three months ended September 30, 2024, was $104,573,000, compared to $112,803,000 in the same period of 2023, a decrease of $8,230,000[139]. - Non-GAAP cash cost per ton sold (FOB mine) was $102 for the three months ended September 30, 2024, down from $113 in the same period of 2023, a decrease of $11[139]. Profitability - The company reported a net loss of $239,000 for the three months ended September 30, 2024, compared to a net income of $19.5 million in the same period of 2023[101]. - The company’s adjusted EBITDA for the nine months ended September 30, 2024, was $76.6 million, down from $123.7 million in the same period of 2023, impacted by softening global metallurgical coal markets[100]. - Adjusted EBITDA for the three months ended September 30, 2024, was $23,617,000, a decrease from $45,407,000 in the same period of 2023[135]. - Adjusted EBITDA for the nine months ended September 30, 2024, was $76,596,000, compared to $123,675,000 in the same period of 2023, a decrease of $47,079,000[135]. Market Conditions - The global metallurgical coal market has softened in 2024 due to constrained economic growth and increased steel exports from China, impacting pricing and demand[95]. - The company anticipates continued volatility in metallurgical coal prices due to macroeconomic conditions and expects limited global investment in new coking coal production capacity to support future market recovery[95]. Production and Resources - The company has 59 million reserve tons and 1,119 million measured and indicated resource tons of high-quality metallurgical coal, with plans to grow annual production to approximately 7 million clean tons in the medium term[93]. - The company expects to satisfy approximately 36% of its outstanding performance obligations of 1.7 million tons in Q4 2024, with an average fixed sales price of $151 per ton[97]. Cash Flow and Financing - Cash flows provided by operating activities were $97.0 million during the first nine months of 2024, primarily driven by net earnings adjusted for non-cash expenses[123]. - Interest expense, net was $4.5 million for the nine months ended September 30, 2024, a decrease from $7.3 million for the same period in 2023[117]. - The effective tax rate for the nine months ended September 30, 2024 was 28%, compared to 21% for the same period in 2023[118]. - The company had $22.9 million of cash and cash equivalents and $57.9 million of remaining availability under its Revolving Credit Facility as of September 30, 2024[122]. - The company entered into an amended credit agreement to extend the maturity date and increase the size of its existing Revolving Credit Facility to $200 million, with an accordion feature for an additional $75 million[121]. - The company anticipates lower capital spending in the fourth quarter of 2024 as most of the annual growth capital expenditures occurred in the first half of 2024[124]. Capital Expenditures - Capital expenditures totaled $57.9 million, including $12.3 million for the Maben preparation plant, which was commissioned in October 2024[124].