Warrior Met Coal(US:HCC)2025-11-05 21:44Financial Performance - Total revenues for the three months ended September 30, 2025, were $328.6 million, compared to $327.7 million for the same period in 2024, reflecting a slight increase of 0.3%[13] - Net income for the three months ended September 30, 2025, was $36.6 million, down from $41.8 million in the same period of 2024, representing a decrease of 5.2%[13] - Operating income for the nine months ended September 30, 2025, was $11.1 million, significantly lower than $259.1 million for the same period in 2024, indicating a decline of 95.7%[13] - For the nine months ended September 30, 2025, the net income was $36.6 million compared to $41.8 million for the same period in 2024, reflecting a decrease of approximately 12%[30] - Net income for the three months ended September 30, 2025, was $36.6 million, resulting in a basic net income per share of $0.70[48] - The Company reported a net income of $34.0 million for the nine months ended September 30, 2025, a significant decrease from $249.5 million in the same period of 2024[77] Cash and Liquidity - Cash and cash equivalents as of September 30, 2025, were $336.3 million, down from $491.5 million at the end of 2024, a decrease of 31.6%[16] - The company reported a net cash provided by operating activities of $153.2 million for the nine months ended September 30, 2025, down from $313.2 million in the same period of 2024, a decrease of 51.0%[18] - The Company incurred a net cash used in investing activities of $305.9 million for the nine months ended September 30, 2025, compared to $395.8 million in the same period of 2024, a decrease of 22.7%[18] - As of September 30, 2025, the Company had $140.5 million available under the Amended ABL Facility, with no loans outstanding and $2.5 million in letters of credit issued[44] Assets and Liabilities - Total assets increased to $2.68 billion as of September 30, 2025, compared to $2.59 billion at the end of 2024, marking an increase of 3.5%[16] - Total liabilities increased to $564.8 million as of September 30, 2025, compared to $500.7 million at the end of 2024, an increase of 12.8%[16] - Total stockholders' equity as of September 30, 2025, was $2.12 billion, an increase from $2.09 billion at the end of 2024, representing a growth of about 1.4%[30] - The Company had total debt of $154.1 million as of September 30, 2025, slightly up from $153.6 million at the end of 2024, reflecting a marginal increase of about 0.3%[40] Inventory and Capital Expenditures - The balance of inventories, net, as of September 30, 2025, was $219.1 million, up from $207.6 million at the end of 2024, indicating an increase of approximately 5.5%[36] - Capital expenditures for the Mining segment were $222.6 million for the nine months ended September 30, 2025, down from $321.1 million in the prior year, a decrease of 30.6%[75] Segment Performance - The Mining segment generated revenues of $903.4 million for the nine months ended September 30, 2025, down from $1.21 billion in the prior year, reflecting a decline of 25.4%[75] - Segment profit for the Mining segment was $191.7 million for the nine months ended September 30, 2025, compared to $429.9 million for the same period in 2024, representing a decrease of 55.4%[75] - The Company’s cash cost of sales (exclusive of depreciation and depletion) for the Mining segment was $705.7 million for the nine months ended September 30, 2025, compared to $773.6 million in the prior year, a decrease of 8.8%[75] Dividends and Share Repurchase - The company paid dividends of $0.08 per share for the three months ended September 30, 2025, consistent with the same period in 2024[13] - The Company declared a special dividend of $0.50 per share on February 9, 2024, along with quarterly dividends of $0.08 per share[60] - The Company repurchased 500,000 shares for approximately $10.6 million under its New Stock Repurchase Program, leaving $59.4 million authorized for future repurchases[59] Other Financial Activities - The effective income tax benefit for the nine months ended September 30, 2025, was $15.5 million, compared to an expense of $32.2 million for the same period in 2024, indicating a significant improvement[38] - The Company reported additional paid-in capital of $296.0 million as of September 30, 2025, compared to $282.7 million at the end of 2024, marking an increase of about 4.7%[30] - The Company’s long-term investments in fixed income securities amounted to $2.0 million as of September 30, 2025, down from $44.6 million at the end of 2024, reflecting a significant decrease of approximately 95.5%[31] - The Company had realized losses of $0.2 million and $1.1 million from natural gas swap contracts for the three and nine months ended September 30, 2025, respectively[63] - Coal royalty expenses for the three months ended September 30, 2025, were $17.6 million, compared to $25.6 million for the same period in 2024[54] Financing and Lease Obligations - Finance lease right-of-use assets increased to $138.4 million as of September 30, 2025, compared to $56.7 million as of December 31, 2024[46] - The total finance lease liabilities rose to $82.5 million as of September 30, 2025, up from $19.4 million at the end of 2024[46] - The weighted average remaining lease term for finance leases increased to 66.7 months as of September 30, 2025, from 17.9 months at the end of 2024[46] Miscellaneous - The Company continues to engage in negotiations for a new Collective Bargaining Agreement with the labor union, which expired on April 1, 2021, indicating ongoing labor relations efforts[24] - The estimated fair value of the Company's Notes as of September 30, 2025, was approximately $159.3 million based on observable market data[69] - The Company had 1,500,000 metric million British thermal unit gas swap contracts outstanding as of September 30, 2025, to hedge against natural gas price fluctuations[177] - The Company increased its Amended ABL Facility commitments by $27.0 million to a total of $143.0 million, with a maturity date extended to August 28, 2030[43]