NASDAQ$METC

Ramaco Resources Inc · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Reported a decrease in net income and revenue compared to the same quarter last year, but cash costs per ton sold at Elk Creek were below prior guidance.

Ramaco Resources reported a net income of $2.0 million and revenue of $41.9 million for Q1 2020. The company's cash costs per ton sold at Elk Creek were $61, below the prior guidance. They strengthened their liquidity position through cost reduction initiatives and additional borrowing.

  • Net income was $2.0 million and adjusted EBITDA was $8.4 million.
  • Revenue was $41.9 million and revenue per ton on Company produced coal was $93.
  • Cost of sales was $30.9 million and cash costs per ton sold at Elk Creek was $61.
  • Company has strengthened its liquidity position through cost reduction initiatives and borrowing $13.2 million in additional low coupon promissory notes.

Headline financials

Total Revenue

$41.9M

Previous: $57.5M-27.0%
EPS (adj)

$0.05

Previous: $0.17-70.6%
Adjusted EBITDA

$8.42M

Previous: $13.7M-38.5%
Capital Expenditures

-$8.9M

Previous: -$8.2M-8.5%
Free Cash Flow

-$6.94M

Previous: -$1.32M-427.2%
Net Income

$1.96M

Previous: $6.88M-71.5%
Operating Income

$1.14M

Previous: $8.25M-86.2%
Gross Profit

$11M

Previous: $16.5M-33.1%
Cash & Equivalents

$15.3M

Previous: $1.94M+690.0%
Total Assets

$245M

Previous: $207M+18.4%
Stock-Based Comp

$923K

Previous: $894K+3.2%

Revenue & EPS history

Ramaco · Revenue · Quarterly

$41.9M

Q1 2020-27%vs Q1 2019
Beat estimate in 8 of 16 quarters(50%)
ActualEstimate

Forward guidance

Due to current market uncertainty, Ramaco is suspending production guidance other than continuing to provide current sales commitments.

Tailwinds

  • The company has locked in domestic sales for the majority of its planned 2020 volumes at levels above current spot prices.
  • Ramaco believes that they made the right decision to reduce their exposure to index-based seaborne pricing for 2020.
  • The company remains confident that the global supply/demand balance of high quality metallurgical coal will remain tight.
  • Three projects could add over 1.2 million tons of annual low-vol and mid-vol production at full capacity, which would normalize at about 900,000 additional tons per year over time.
  • Our operating team did another excellent job controlling mining costs, with Elk Creek first quarter cash costs of $61 among the lowest in Central Appalachia.

Headwinds

  • Market and societal upheaval due to COVID-19.
  • The company has hit the pause button on all discretionary spending, until there is more market clarity and also took additional measures to increase our near-term liquidity.
  • Inventory increased by over $8 million since year-end 2019.
  • Operational and financial challenge will be to navigate through these unprecedented times and treacherous markets for perhaps the next two quarters.
  • There is uncertainty on every front.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

-2.0%

Avg return

Earnings day

+2.9%

Avg return

5 days after

-1.1%

Avg return

30 days after

41%

15 / 37 earnings

Positive

+19.9%

Q2 2021

Best reaction

-18.4%

Q3 2017

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+2.6%-2.2%-3.6%
Q4 2025-15.4%-12.4%-11.9%
Q3 2025-16.9%-10.6%-53.9%
Q1 2025-0.4%+3.8%+12.1%
Q4 2024-3.9%+13.8%-8.2%
Q3 2024+10.2%+17.5%+39.4%
Q2 2024+10.9%+12.7%-19.9%
Q1 2024-15.4%-17.7%-16.7%
Q4 2023+7.7%-9.0%-17.3%
Q3 2023-1.8%+46.6%+43.5%
Q2 2023-11.9%-11.6%-15.4%
Q1 2023+9.7%+33.5%+3.2%
Q4 2022-3.9%-4.5%-13.2%
Q3 2022-7.7%-12.1%-9.8%
Q2 2022-17.1%-4.7%-9.7%
Q1 2022+2.6%+11.0%+22.8%
Q4 2021-10.7%+0.4%-1.4%
Q3 2021-10.9%-13.9%-30.8%
Q2 2021+19.9%+25.0%+34.6%
Q1 2021+8.9%+17.4%+32.4%
Q4 2020+8.4%+14.9%+1.8%
Q3 2020-1.3%-2.7%+5.6%
Q2 2020+7.5%+13.3%+20.8%
Q1 2020-8.8%-4.2%+8.8%
Q4 2019-3.9%-9.9%-16.1%
Q3 2019-6.5%-3.1%-11.5%
Q2 2019-9.7%+7.2%+30.5%
Q1 2019-4.3%-5.0%-19.2%
Q4 2018+8.8%+12.0%+2.7%
Q3 2018-17.8%-19.5%-29.9%
Q2 2018+5.9%+24.3%+20.9%
Q1 2018-0.3%+3.2%+13.1%
Q4 2017+1.1%+6.7%-9.2%
Q3 2017-18.4%-26.2%-15.4%
Q2 2017-8.5%-2.5%-1.3%
Q1 2017+2.9%+8.1%-9.1%
Q4 2016+16.2%+9.4%-11.2%
Q3 2016
Q2 2016
Q1 2016
Q4 2015
Q3 2015
Q2 2015
Q1 2015

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