NASDAQ$METC

Ramaco Resources Inc · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Reported record quarterly financial performance, driven by favorable market conditions and increased production levels.

Ramaco Resources reported a record first quarter 2022, with net income of $41.5 million and Adjusted EBITDA of $64.1 million, driven by favorable market conditions and increased production. The company was impacted by rail service delays, which negatively impacted EPS by $0.38 and Adjusted EBITDA by $23.0 million. They anticipate a record second quarter and an increased cadence in all key metrics in second half results.

  • Net income was $41.5 million (diluted EPS of $0.92) and Adjusted EBITDA was $64.1 million.
  • Total booked sales of roughly 2.4 million tons, with roughly 90% or 2.1 million tons of those sales booked at a fixed price.
  • Quarterly production of 666,000 tons came in slightly ahead of budget.
  • The Company closed on the purchase of 100% of the equity interests of Ramaco Coal, LLC.

Headline financials

Total Revenue

$155M

Previous: $43.5M+256.4%
EPS (adj)

$0.92

Previous: $0.10+820.0%
Realized Pricing

$234.00

No prior period
Cash Cost per Ton

$106.00

No prior period
Cash Margin per Ton

$128.00

No prior period
Total Tons Sold

583.0K

Previous: 422.0K+38.2%
Adjusted EBITDA

$64.1M

No prior period
Capital Expenditures

-$19.7M

Previous: -$3.73M-430.0%
Free Cash Flow

$21.7M

Previous: $418K+5098.3%
Net Income

$41.5M

Previous: $4.14M+901.0%
Operating Income

$52.9M

Previous: $1.24M+4151.6%
Gross Profit

$73.6M

Previous: $12.3M+500.7%
Cash & Equivalents

$71.5M

Previous: $5.54M+1189.2%
Total Assets

$406M

Previous: $241M+68.6%
Stock-Based Comp

$1.89M

Previous: $1.06M+78.9%

Revenue & EPS history

Ramaco · Revenue · Quarterly

$155M

Q1 2022+256.4%vs Q1 2021
Beat estimate in 5 of 16 quarters(31%)
ActualEstimate

Forward guidance

The company expects to increase guided production from up to 3.4 million tons this year by over 20% to over 4 million tons in 2023. The company anticipates higher earnings by next quarter from improving rail service, greater production and a decrease in overall costs, especially on royalties as a consequence of the Ramaco Coal acquisition.

Tailwinds

  • Anticipate a record second quarter and an increased cadence in all key metrics in second half results.
  • Committed sales for 2.4 million tons or almost 70% of our 2022 production at the high end of guidance.
  • Still have almost 30% of our production left to sell into export markets at currently record levels of pricing.
  • Expect to increase guided production from up to 3.4 million tons this year by over 20% to over 4 million tons in 2023.
  • Anticipate higher earnings by next quarter from improving rail service, greater production and a decrease in overall costs.

Headwinds

  • Operationally during this quarter, because of rail delays we built far more inventory of coal (over 80,000 tons) than we had planned.
  • Could not control our rail logistics and received cars for only roughly 80% of our expected shipments.
  • First quarter earnings per share would have been $0.38 higher and Adjusted EBITDA would have increased by $23 million to almost $90 million had the rail shipments been on time.
  • Immediate met coal spot prices are currently down from the peak.
  • Higher than anticipated inflationary headwinds.

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 2022

Historical avgQ1 2022

-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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