Ramaco Resources, Inc 8-K, filed Feb 20, 2020

Ramaco Resources, Inc. (METC)

8-K 2020-02-20 For: 2020-02-20

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Added on April 08, 2026

About this 8-K

Ramaco Resources, Inc filed this 8-K on February 20, 2020.

Items reported

Item 2.02: Financial results
Item 7.01: Regulation FD disclosure
Item 9.01: Financial statements and exhibits

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Delaware	001-38003	38-4018838
(State or other jurisdiction of	(Commission	(I.R.S. Employer
incorporation or organization)	File Number)	Identification No.)

	250 West Main Street, Suite 1800

	Lexington, Kentucky 40507
	(Address of principal executive offices)
	(Zip Code)


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.01 par value	METC	NASDAQ Global Select Market

	RAMACO RESOURCES, INC.


	By:	/s/ Jeremy R. Sussman
	Name:	Jeremy R. Sussman
	Title:	Chief Financial Officer


Key Metrics
	4Q19		3Q19		Change	4Q18		Change	2019		2018		Change
Sales of Company Produced Tons ('000)		420		510	-18%		315	33%		1,872		1,721	9%
Revenue ($mm)	$	45.6	$	61.4	-26%	$	44.2	3%	$	230.2	$	227.6	1%
Cost of Sales ($mm)	$	33.3	$	45.0	-26%	$	35.0	-5%	$	162.5	$	176.6	-8%
Pricing of Company Produced ($/Ton)	$	104	$	111	-6%	$	96	8%	$	109	$	92	19%
Cash Cost of Sales - Company Produced ($/Ton)	$	74	$	80	-8%	$	68	9%	$	73	$	63	16%
Cash Margins on Company Produced ($/Ton)	$	30	$	31	-3%	$	28	7%	$	36	$	29	25%
Net Income ($mm)	$	1.9	$	5.5	-66%	$	3.4	-44%	$	24.9	$	25.1	-1%
Adjusted EBITDA ($mm)	$	9.0	$	13.6	-34%	$	7.0	28%	$	55.4	$	42.2	31%
Capex ($mm)	$	11.7	$	14.3	-18%	$	8.3	41%	$	45.7	$	48.1	-5%
Diluted Earnings per Share	$	0.05	$	0.14	-64%	$	0.08	-38%	$	0.61	$	0.62	-2%


	Three months ended						Year ended December 31,
	December 31,		September 30,		December 31,
In thousands, except per ton amounts	2019		2019		2018		2019		2018

Sales Volume
Company		420		510		315		1,872		1,721
Purchased		—		17		95		78		427
Total		420		527		410		1,950		2,148

Company Production
Elk Creek Mining Complex		400		405		409		1,669		1,669
Berwind Development Deep Mine		47		55		15		186		81
Total		447		460		424		1,855		1,750

Company Financial Metrics (a)
Average revenue per ton	$	104	$	111	$	96	$	109	$	92
Average cash costs of coal sold		74		80		68		73		63
Average cash margin per ton	$	30	$	31	$	28	$	36	$	29

Elk Creek Financial Metrics (a)
Average revenue per ton	$	102	$	109	$	94	$	108	$	90
Average cash costs of coal sold		66		73		64		67		60
Average cash margin per ton	$	36	$	36	$	30	$	41	$	30

Purchased Coal Financial Metrics (a)
Average revenue per ton	$	—	$	131	$	103	$	127	$	101
Average cash costs of coal sold		—		113		97		114		95
Average cash margin per ton	$	—	$	18	$	6	$	13	$	6

Capital Expenditures
Maintenance	$	4,480	$	5,428	$	2,538	$	15,264	$	18,270
Growth		7,199		8,878		5,716		30,458		29,867
Total	$	11,679	$	14,306	$	8,254	$	45,722	$	48,137


	2020 Guidance		2019 Actuals

Company Production
Elk Creek		1,650 - 1,850		1,669
Berwind Development Deep Mine		150 - 250		186
Total		1,800 - 2,100		1,855

Sales Mix (a)
Metallurgical		1,750 - 2,000		1,891
Steam		50 - 100		59
Total		1,800 - 2,100		1,950

Cost Per Ton
Elk Creek	$	63 - 67	$	67

Capital Expenditures (b)
Maintenance	$	12,000 - 14,000	$	17,472
Growth		13,000 - 16,000		28,250
Total	$	25,000 - 30,000	$	45,722

Other
Depreciation and amortization expense	$	20,000 - 23,000	$	19,521
Selling, general and administrative expense (c)	$	13,000 - 14,000	$	14,119
Interest expense, net	$	1,000 - 1,200	$	1,193
Cash taxes	$	0 - 25	$	3
Effective tax rate		13 - 18%		17%


	Volume	Average Price
Domestic, fixed priced	1.0	$	94
Export, fixed priced	0.4	$	93
Total, fixed priced	1.4	$	93
Indexed priced	0.1
Total committed tons	1.5


	Three months ended December 31,				Year ended December 31,
In thousands, except per share amounts	2019		2018		2019		2018

Revenue	$	45,612	$	44,187	$	230,213	$	227,574

Cost and expenses
Cost of sales (exclusive of items shown separately below)		33,262		34,958		162,470		176,555
Asset retirement obligation accretion		128		123		511		494
Depreciation and amortization		5,229		3,682		19,521		12,423
Selling, general and administrative		5,052		3,399		18,179		14,006
Total cost and expenses		43,671		42,162		200,681		203,478
Operating income		1,941		2,025		29,532		24,096
Other income		694		479		1,758		2,518
Interest expense, net		(242)		(446)		(1,193)		(1,427)
Income before tax		2,393		2,058		30,097		25,187
Income tax expense		505		(1,336)		5,163		113
Net income	$	1,888	$	3,394	$	24,934	$	25,074

Earnings per common share
Basic earnings per share	$	0.05	$	0.08	$	0.61	$	0.63
Diluted earnings per share	$	0.05	$	0.08	$	0.61	$	0.62

Basic weighted average shares outstanding		40,939		40,082		40,838		40,039
Diluted weighted average shares outstanding		40,939		40,230		40,838		40,263


In thousands, except share amounts	December 31, 2019		December 31, 2018

Assets
Current assets
Cash and cash equivalents	$	5,532	$	6,951
Accounts receivable		19,256		10,729
Inventories		15,261		14,185
Prepaid expenses and other		4,274		3,154
Total current assets		44,323		35,019

Property, plant and equipment, net		178,202		149,205
Advanced coal royalties		3,271		3,045
Other assets		1,017		975
Total Assets	$	226,813	$	188,244

Liabilities and Stockholders' Equity
Liabilities
Current liabilities
Accounts payable	$	10,663	$	16,393
Accrued expenses		11,740		8,094
Asset retirement obligations		19		71
Current portion of long-term debt		3,333		5,000
Other		656		287
Total current liabilities		26,411		29,845

Asset retirement obligations		14,586		12,707
Long-term debt, net		9,614		4,474
Deferred tax liability		5,265		109
Other long-term liabilities		854		—
Total liabilities		56,730		47,135

Commitments and contingencies		—		—

Stockholders' Equity
Preferred stock, $0.01 par value		—		—
Common stock, $0.01 par value		410		401
Additional paid-in capital		154,957		150,926
Retained earnings (deficit)		14,716		(10,218)
Total stockholders' equity		170,083		141,109
Total Liabilities and Stockholders' Equity	$	226,813	$	188,244


	Year ended December 31,
In thousands	2019		2018

Cash flows from operating activities
Net income	$	24,934	$	25,074
Adjustments to reconcile net income to net cash from operating activities:
Accretion of asset retirement obligations		511		494
Depreciation and amortization		19,521		12,423
Amortization of debt issuance costs		58		569
Stock-based compensation		4,060		2,638
Deferred income taxes		5,156		109
Changes in operating assets and liabilities:
Accounts receivable		(8,527)		(3,563)
Prepaid expenses and other current assets		723		(629)
Inventories		(1,076)		(4,127)
Other assets and liabilities		689		(835)
Accounts payable		(7,313)		(1,521)
Accrued expenses		3,646		5,551
Net cash from operating activities		42,382		36,183

Cash flow from investing activities:
Purchases of property, plant and equipment		(45,722)		(48,137)
Proceeds from maturities of investment securities		—		5,200
Net cash from investing activities		(45,722)		(42,937)

Cash flows from financing activities
Proceeds from borrowings		73,750		28,424
Proceeds from notes payable - related party		—		3,000
Payments of debt issuance cost		—		(569)
Repayment of borrowings		(70,335)		(18,950)
Repayment of notes payable - related party		—		(3,000)
Repayments of financed insurance payable		(570)		(989)
Restricted stock surrendered for withholding taxes payable		(20)		—
Net cash from financing activities		2,825		7,916

Net change in cash and cash equivalents and restricted cash		(515)		1,162
Cash and cash equivalents and restricted cash, beginning of period		7,380		6,218
Cash and cash equivalents and restricted cash, end of period	$	6,865	$	7,380


	Three months ended December 31,				Year ended December 31,
(In thousands)	2019		2018		2019		2018

Reconciliation of Net Income to Adjusted EBITDA
Net income	$	1,888	$	3,394	$	24,934	$	25,074
Depreciation and amortization		5,229		3,682		19,521		12,423
Interest expense, net		242		446		1,193		1,427
Income taxes		505		(1,336)		5,163		113
EBITDA		7,864		6,186		50,811		39,037
Stock-based compensation		1,003		698		4,060		2,638
Accretion of asset retirement obligation		128		123		511		494
Adjusted EBITDA	$	8,995	$	7,007	$	55,382	$	42,169


	Three months ended December 31, 2019						Three months ended December 31, 2018
	Company		Purchased				Company		Purchased
(In thousands, except per ton amounts)	Produced		Coal		Total		Produced		Coal		Total

Revenue	$	45,612	$	—	$	45,612	$	33,342	$	10,845	$	44,187
Less: Adjustments to reconcile to Non-GAAP revenue (FOB mine)
Transportation costs		(2,155)		—		(2,155)		(3,108)		(1,013)		(4,121)
Non-GAAP revenue (FOB mine)	$	43,457	$	—	$	43,457	$	30,234	$	9,832	$	40,066
Tons sold		420		—		420		315		95		410
Revenue per ton sold (FOB mine)	$	104	$	—	$	104	$	96	$	103	$	98


	Three months ended September 30, 2019
	Company		Purchased
(In thousands, except per ton amounts)	Produced		Coal		Total

Revenue	$	59,083	$	2,297	$	61,380
Less: Adjustments to reconcile to Non-GAAP revenue (FOB mine)
Transportation costs		(2,384)		(52)		(2,436)
Non-GAAP revenue (FOB mine)	$	56,699	$	2,245	$	58,944
Tons sold		510		17		527
Revenue per ton sold (FOB mine)	$	111	$	131	$	112


	Year ended December 31, 2019						Year ended December 31, 2018
	Company		Purchased				Company		Purchased
(In thousands, except per ton amounts)	Produced		Coal		Total		Produced		Coal		Total

Revenue	$	219,911	$	10,302	$	230,213	$	179,078	$	48,496	$	227,574
Less: Adjustments to reconcile to Non-GAAP revenue (FOB mine)
Transportation costs		(16,253)		(424)		(16,677)		(21,281)		(5,276)		(26,557)
Non-GAAP revenue (FOB mine)	$	203,658	$	9,878	$	213,536	$	157,797	$	43,220	$	201,017
Tons sold		1,872		78		1,950		1,721		427		2,148
Revenue per ton sold (FOB mine)	$	109	$	127	$	110	$	92	$	101	$	94