NASDAQ$METC

Ramaco Resources Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Reported a strong second quarter with significant increases in net income and Adjusted EBITDA compared to the previous year.

Ramaco Resources reported a strong second quarter in 2022, with net income of $33.3 million and Adjusted EBITDA of $57.9 million, representing increases of 235% and 220% respectively compared to the second quarter of 2021. The company built approximately 90,000 tons of inventory due to logistical issues, and has booked total 2022 sales of roughly 2.8 million tons as of August 4 at an average sales price of roughly $214 per ton.

  • Net income was $33.3 million (diluted EPS of $0.74), a 235% increase over the previous second quarter.
  • Adjusted EBITDA was $57.9 million, a 220% increase over the previous second quarter.
  • Approximately 90,000 tons of inventory were built during the quarter due to logistical issues.
  • Total 2022 sales were booked at roughly 2.8 million tons as of August 4 at an average sales price of roughly $214 per ton.

Headline financials

Total Revenue

$139M

Previous: $76.1M+82.3%
EPS (adj)

$0.74

Previous: $0.23+221.7%
Realized Pricing

$215.00

Previous: $96.00+124.0%
Cash Cost per Ton

$106.00

Previous: $69.00+53.6%
Cash Margin per Ton

$109.00

Previous: $27.00+303.7%
Total Tons Sold

584.0K

Previous: 686.0K-14.9%
Adjusted EBITDA

$57.9M

No prior period
Capital Expenditures

-$53.8M

Previous: -$8.55M-529.2%
Free Cash Flow

-$20.5M

Previous: $1.39M-1575.7%
Net Income

$33.3M

Previous: $9.94M+234.7%
Operating Income

$42.7M

Previous: $7.02M+508.0%
Gross Profit

$62M

Previous: $18.3M+239.0%
Cash & Equivalents

$43.5M

Previous: $19.4M+124.1%
Total Assets

$490M

Previous: $247M+98.2%
Stock-Based Comp

$2.29M

Previous: $1.52M+50.2%

Revenue & EPS history

Ramaco · Revenue · Quarterly

$139M

Q2 2022+82.3%vs Q2 2021
Beat estimate in 3 of 13 quarters(23%)
ActualEstimate

Forward guidance

Ramaco Resources is adjusting its longer-term guidance to reflect a three-year target of achieving roughly 6.5 million tons of production by 2025 and expects to have a record year in 2022.

Tailwinds

  • Company is poised to have a record second half and full-year 2022, with financial metrics at multiples of 2021.
  • Company is in growth mode with a goal to increase production to meet future demand for high quality met coal.
  • Company is adjusting longer-term guidance to reflect a three-year target of achieving roughly 6.5 million tons of production by 2025.
  • This increase will be financed from internally generated cash flow.
  • Company intends to sell coal into whatever markets will yield the best netback pricing for 2023.

Headwinds

  • First half delivered sales suffered from poor rail service.
  • Company built almost 90,000 tons of inventory during the second quarter of 2022, compounding the same logistical issue from the first quarter.
  • Had the rails performed, results would have been even stronger and closer to consensus projections.
  • Company reduced full-year 2022 production guidance, and increased cost guidance due to Berwind methane ignition incident.
  • Company is working closely with both MSHA and West Virginia MHST to investigate the matter and hopefully will soon begin remediation efforts on the affected mine.

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 Q2 2022

Historical avgQ2 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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