Ramaco Resources(METCB) - 2025 Q2 - Quarterly Report

Cautionary Note Regarding Forward-Looking Statements This section cautions readers that forward-looking statements in the report are subject to risks and uncertainties, potentially causing actual results to differ materially - This section highlights that the Quarterly Report includes forward-looking statements, which are based on management's current expectations and assumptions about future events. It cautions readers that actual results may differ materially due to various risks and uncertainties, including those detailed in 'Item 1A. Risk Factors' and the Annual Report[11][13] - Forward-looking statements cover a wide range of topics, including anticipated production levels, costs, sales volumes, revenue, timing of capital projects, economic conditions in the metallurgical coal and steel industries, estimated coal reserves, financing ability, regulatory compliance, and risks related to global economic conditions and the Company's CORE assets[12] PART I. FINANCIAL INFORMATION Item 1. Financial Statements This section presents unaudited condensed consolidated financial statements, offering a detailed financial overview for periods ended June 30, 2025, and December 31, 2024 Unaudited Condensed Consolidated Balance Sheets Condensed Consolidated Balance Sheets (In thousands) | (In thousands) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Assets | | | | Cash and cash equivalents | $28,130 | $33,009 | | Accounts receivable | 55,943 | 73,582 | | Inventories | 59,310 | 43,358 | | Total current assets | 154,910 | 167,634 | | Property, plant, and equipment, net | 487,334 | 482,019 | | Total Assets | $674,646 | $674,686 | | Liabilities and Stockholders' Equity | | | | Accounts payable | $56,271 | $48,855 | | Accrued liabilities | 47,591 | 61,659 | | Total current liabilities | 113,787 | 122,428 | | Long-term borrowings on revolving credit facility | 25,000 | — | | Senior notes, net | 88,606 | 88,135 | | Total liabilities | 327,207 | 311,880 | | Total stockholders' equity | 347,439 | 362,806 | | Total Liabilities and Stockholders' Equity | $674,646 | $674,686 | - Total assets remained stable at $674.6 million as of June 30, 2025, compared to December 31, 2024. Current assets decreased by $12.7 million, primarily due to a decrease in accounts receivable and cash, while inventories increased[18] - Total liabilities increased by $15.3 million, driven by an increase in long-term borrowings on the revolving credit facility and financing lease obligations, partially offset by a decrease in current liabilities[18] - Total stockholders' equity decreased by $15.4 million, from $362.8 million at December 31, 2024, to $347.4 million at June 30, 2025, mainly due to net losses and dividend payments[18] Unaudited Condensed Consolidated Statements of Operations Condensed Consolidated Statements of Operations (In thousands, except per-share amounts) | (In thousands, except per-share amounts) | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Revenue | $152,959 | $155,315 | $287,615 | $327,991 | | Total costs and expenses | 166,803 | 149,900 | 313,481 | 319,302 | | Operating (loss) income | (13,844) | 5,415 | (25,866) | 8,689 | | Net (loss) income | $(13,974) | $5,541 | $(23,431) | $7,573 | | Basic - Class A EPS | $(0.29) | $0.08 | $(0.48) | $0.08 | | Basic - Class B EPS | $(0.12) | $0.18 | $(0.31) | $0.42 | | Diluted - Class A EPS | $(0.29) | $0.08 | $(0.48) | $0.08 | | Diluted - Class B EPS | $(0.12) | $0.18 | $(0.31) | $0.41 | - Revenue decreased by 1.5% for the three months ended June 30, 2025, and by 12.3% for the six months ended June 30, 2025, compared to the same periods in 2024, primarily due to lower metallurgical coal prices[19] - The Company reported a net loss of $14.0 million for Q2 2025 and $23.4 million for the six months ended June 30, 2025, a significant decline from net income of $5.5 million and $7.6 million in the respective prior-year periods[19] - Operating income shifted to a loss of $13.8 million in Q2 2025 and $25.9 million for the six months ended June 30, 2025, from positive operating income in the prior year, reflecting the impact of decreased revenue and increased costs[19] Unaudited Condensed Consolidated Statements of Stockholders' Equity Condensed Consolidated Statements of Stockholders' Equity (In thousands) | (In thousands) | Balance at January 1, 2025 | Stock-based compensation | Shares surrendered for withholding taxes payable | Cash dividends and dividend equivalents declared | Non-cash dividends declared and distributed | Non-cash dividends declared but not distributed | Net (loss) | Balance at June 30, 2025 | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Class A Common Stock | $438 | $6 | $0 | $0 | $0 | $0 | $0 | $444 | | Class B Common Stock | $95 | $1 | $0 | $0 | $7 | $0 | $0 | $103 | | Additional Paid-in Capital | $292,739 | $8,105 | $(2,680) | $0 | $16,177 | $0 | $0 | $314,341 | | Retained Earnings | $69,534 | $0 | $0 | $(3,718) | $(6,556) | $(3,278) | $(23,431) | $32,551 | | Total Stockholders' Equity | $362,806 | $8,112 | $(2,680) | $(3,718) | $9,628 | $(3,278) | $(23,431) | $347,439 | - Total stockholders' equity decreased from $362.8 million at January 1, 2025, to $347.4 million at June 30, 2025, primarily due to a net loss of $23.4 million and cash/non-cash dividends declared[23] - Additional paid-in capital increased by $21.6 million, driven by stock-based compensation and non-cash dividends declared and distributed, partially offset by shares surrendered for withholding taxes[23] - Retained earnings decreased significantly from $69.5 million to $32.6 million, reflecting the net loss for the period and dividend declarations[23] Unaudited Condensed Consolidated Statements of Cash Flows Condensed Consolidated Statements of Cash Flows (In thousands) | (In thousands) | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :--- | :--- | :--- | | Net cash from operating activities | $21,779 | $59,602 | | Net cash used in investing activities | $(36,355) | $(39,983) | | Net cash from (used in) financing activities | $9,697 | $(34,010) | | Net change in cash and cash equivalents and restricted cash | $(4,879) | $(14,391) | | Cash and cash equivalents and restricted cash, end of period | $28,944 | $28,390 | - Net cash from operating activities decreased significantly to $21.8 million for the six months ended June 30, 20