Stock Monitor: Enstar Group Post Earnings Reporting
LONDON, UK / ACCESSWIRE / June 5, 2018 / If you want access to our free earnings report on Warrior Met Coal, Inc. (NYSE: HCC) ("Warrior"), all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=HCC. The Company reported its first quarter fiscal 2018 operating and financial results on May 02, 2018. The coal Company outperformed top- and bottom-line expectations and also provided guidance for the full fiscal year 2018. Register today and get access to over 1,000 Free Research Reports by joining our site below:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Warrior Met Coal most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
Earnings Highlights and Summary
Warrior's total revenues were $421.8 million in Q1 2018, up 75% compared to $241.6 million in Q1 2017. The Company's revenue numbers surpassed analysts' estimates by $39.57 million.
Warrior's total revenues for Q1 2018 included mining revenues of $412.9 million, which, in turn, consisted of met coal sales of 2.1 million short tons at an average net selling price of $195 per short ton. The Company's sales volume increased 88% on a y-o-y basis, reflecting both increased production levels and high demand from customers. Warrior capitalized on the strong pricing environment in the quarter by achieving a gross price realization of 99%.
During Q1 2018, Warrior's cost of sales was $190.7 million, or 46.2% of mining revenues, and included mining costs, transportation, and royalty costs. The Company's free-on-board port, cash cost of sales per short ton decreased to $89.82 in the reported quarter compared to $93.75 in the year earlier same quarter, primarily due to higher sales volumes.
Warrior's selling, general, and administrative expenses (SG&A) were $8.2 million in Q1 2018 compared to $5.2 million in Q1 2017. The Company's transaction and other expenses were $3.3 million in the reported quarter and were related to the issuance of $125.0 million in aggregate principal amount of the Company's 8.00% senior secured notes due 2024. The Company did not incur any income tax expenses during the reported quarter, due to its planned utilization of net operating losses (NOLs).
Warrior reported a net income of $178.7 million, or $3.36 per diluted share, in Q1 2018 compared to a net income of $108.3 million, or $2.06 per diluted share, in Q1 2017. Excluding one-time transaction and other expenses, the Company's adjusted diluted earnings per share (EPS) soared 54% to $3.42 in the reported quarter versus $2.22 in the year earlier comparable quarter, and were ahead of Wall Street's estimates of $3.02.
For Q1 2018, Warrior reported adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) of $216.4 million compared to adjusted EBITDA of $135.5 million in Q1 2017. The Company's adjusted EBITDA margin was 51% in the reported quarter compared to 53% in the prior year's corresponding period.
Cash Flow and Liquidity
During Q1 2018, Warrior generated strong cash flows from operating activities of $193.7 million compared to $65.6 million in Q1 2017. The Company's net working capital, excluding cash, increased by $9.0 million from Q4 2017, primarily due to the higher accounts receivable on higher sales volumes.
For Q1 2018, Warrior's capital expenditure was $22.5 million, resulting in a free cash flow of $171.2 million, which was $117.0 million higher than in the prior year's same period. Spending on sustaining and discretionary capital expenditure included a down payment on a new set of shields and the new portal at Mine 7.
As of March 31, 2018, Warrior's available liquidity was $422.0 million, consisting of cash and cash equivalents of $322.0 million and $100.0 million available under its asset-based revolving credit agreement.
Warrior's coal inventory fell to 316,000 short tons at the end of Q1 2018 from 341,000 short tons at the end of Q4 2017, due to a strong demand for the Company's products.
For the full fiscal year 2018, Warrior is forecasting coal sales of 6.8 million to 7.3 million short tons; coal production of 6.8 million to 7.3 million short tons; capital expenditure of $100 million to $120 million; SG&A of $30 million to $33 million; and a cash tax rate of 0%.
Stock Performance Snapshot
June 04, 2018 - At Monday's closing bell, Warrior Met Coal's stock was slightly up 0.25%, ending the trading session at $28.45.
Volume traded for the day: 754.80 thousand shares.
Stock performance in the last month – up 9.25%; previous three-month period – up 18.52%; past twelve-month period – up 237.34%; and year-to-date – up 44.29%
After yesterday's close, Warrior Met Coal's market cap was at $1.51 billion.
Price to Earnings (P/E) ratio was at 3.09.
The stock has a dividend yield of 0.70%.
The stock is part of the Financial sector, categorized under the Property & Casualty Insurance industry. This sector was up 0.5% at the end of the session.
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