Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2023 | Apr. 30, 2023 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-38003 | |
Entity Registrant Name | Ramaco Resources, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 38-4018838 | |
Entity Address, Address Line One | 250 West Main Street | |
Entity Address, Address Line Two | Suite 1900 | |
Entity Address, City or Town | Lexington | |
Entity Address, State or Province | KY | |
Entity Address, Postal Zip Code | 40507 | |
City Area Code | 859 | |
Local Phone Number | 244-7455 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 44,414,085 | |
Entity Central Index Key | 0001687187 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Common Stock, $0.01 par value | ||
Title of 12(b) Security | Common Stock, $0.01 par value | |
Trading Symbol | METC | |
Security Exchange Name | NASDAQ | |
9.00% Senior Notes due 2026 | ||
Title of 12(b) Security | 9.00% Senior Notes due 2026 | |
Trading Symbol | METCL | |
Security Exchange Name | NASDAQ |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Current assets | ||
Cash and cash equivalents | $ 36,616 | $ 35,613 |
Accounts receivable | 71,099 | 41,174 |
Total Inventories | 50,971 | 44,973 |
Prepaid expenses and other | 19,005 | 25,729 |
Total current assets | 177,691 | 147,489 |
Property, plant and equipment, net | 444,075 | 429,842 |
Financing lease right-of-use assets, net | 12,443 | 12,905 |
Advanced coal royalties | 3,277 | 3,271 |
Other | 3,830 | 2,832 |
Total Assets | 641,316 | 596,339 |
Current liabilities | ||
Accounts payable | 49,850 | 34,825 |
Accrued liabilities | 33,070 | 41,806 |
Current portion of asset retirement obligations | 29 | 29 |
Current portion of long-term debt | 29,684 | 35,639 |
Current portion of related party debt | 30,000 | 40,000 |
Current portion of financing lease obligations | 6,114 | 5,969 |
Total current liabilities | 151,162 | 162,845 |
Asset retirement obligations, net | 29,206 | 28,856 |
Long-term debt, net | 45,567 | 18,757 |
Long-term financing lease obligations, net | 3,980 | 4,917 |
Senior notes, net | 32,945 | 32,830 |
Deferred tax liability, net | 37,791 | 35,637 |
Other long-term liabilities | 3,742 | 3,299 |
Total liabilities | 304,393 | 287,141 |
Commitments and contingencies | ||
Other current liabilities | 2,415 | 4,577 |
Stockholders' Equity | ||
Preferred stock, $0.01 par value, 50,000,000 shares authorized, none issued and outstanding | ||
Common stock, $0.01 par value, 260,000,000 shares authorized, 44,418,879 at March 31, 2023 and 44,155,735 at December 31, 2022 shares issued and outstanding | 444 | 442 |
Additional paid-in capital | 171,531 | 168,711 |
Retained earnings | 164,948 | 140,045 |
Total stockholders' equity | 336,923 | 309,198 |
Total Liabilities and Stockholders' Equity | $ 641,316 | $ 596,339 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Mar. 31, 2023 | Dec. 31, 2022 |
Consolidated Balance Sheets | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Preferred stock, shares Issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 260,000,000 | 260,000,000 |
Common stock, shares issued (in shares) | 44,418,879 | 44,155,735 |
Common stock, shares outstanding (in shares) | 44,418,879 | 44,155,735 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Consolidated Statements of Operations | ||
Revenue | $ 166,360 | $ 154,882 |
Costs and expenses | ||
Cost of sales (exclusive of items shown separately below) | 110,549 | 81,253 |
Asset retirement obligations accretion | 350 | 235 |
Depreciation, depletion, and amortization | 11,852 | 8,680 |
Selling, general and administrative | 11,742 | 11,824 |
Total costs and expenses | 134,493 | 101,992 |
Operating income | 31,867 | 52,890 |
Other income, net | 1,247 | 366 |
Interest expense, net | (2,309) | (1,130) |
Income before tax | 30,805 | 52,126 |
Income tax expense | 5,548 | 10,655 |
Net income | $ 25,257 | $ 41,471 |
Earnings per common share | ||
Basic | $ 0.57 | $ 0.94 |
Diluted | $ 0.57 | $ 0.92 |
Weighted average common shares outstanding | ||
Basic weighted average shares outstanding | 44,281 | 44,181 |
Diluted weighted average shares outstanding | 44,692 | 44,908 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Thousands | Common Stock | Additional Paid-in Capital. | Retained Earnings (Deficit) | Total |
Balance at Dec. 31, 2021 | $ 441 | $ 163,566 | $ 47,067 | $ 211,074 |
Stock-based compensation | 2 | 1,885 | 1,887 | |
Adjustment to dividends previously declared | (2,497) | (2,497) | ||
Net income | 41,471 | 41,471 | ||
Balance at Mar. 31, 2022 | 443 | 165,451 | 86,041 | 251,935 |
Balance at Dec. 31, 2022 | 442 | 168,711 | 140,045 | 309,198 |
Restricted stock surrendered for withholding taxes payable | (1) | (114) | (115) | |
Stock-based compensation | 3 | 2,934 | 2,937 | |
Adjustment to dividends previously declared | (354) | (354) | ||
Net income | 25,257 | 25,257 | ||
Balance at Mar. 31, 2023 | $ 444 | $ 171,531 | $ 164,948 | $ 336,923 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Cash flows from operating activities: | ||
Net income | $ 25,257 | $ 41,471 |
Adjustments to reconcile net income to net cash from operating activities: | ||
Accretion of asset retirement obligations | 350 | 235 |
Depreciation, depletion, and amortization | 11,852 | 8,680 |
Amortization of debt issuance costs | 149 | 121 |
Stock-based compensation | 2,937 | 1,887 |
Deferred income taxes | 2,154 | 5,015 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (29,925) | (3,194) |
Prepaid expenses and other current assets | 4,779 | 1,807 |
Inventories | (5,998) | (3,752) |
Other assets and liabilities | (823) | (591) |
Accounts payable | 13,902 | 18,653 |
Accrued liabilities | (3,272) | 7,037 |
Net cash provided by operating activities | 21,362 | 77,369 |
Cash flow from investing activities: | ||
Capital expenditures | (23,546) | (19,742) |
Net cash used for investing activities | (22,364) | (19,742) |
Cash flows from financing activities: | ||
Proceeds from borrowings | 45,000 | 1,337 |
Payment of dividends | (5,556) | (4,998) |
Repayment of borrowings | (24,145) | (2,519) |
Repayment of Ramaco Coal acquisition financing - related party | (10,000) | |
Repayments of insurance financing | (1,433) | (105) |
Repayments of equipment finance leases | (1,746) | (1,635) |
Shares surrendered for withholding taxes payable | (115) | |
Net cash (used for) provided by financing activities | 2,005 | (7,920) |
Net change in cash and cash equivalents and restricted cash | 1,003 | 49,707 |
Cash and cash equivalents and restricted cash, beginning of period | 36,473 | 22,806 |
Cash and cash equivalents and restricted cash, end of period | 37,476 | 72,513 |
Non-cash investing and financing activities: | ||
Leased assets obtained under new financing leases | 954 | 3,624 |
Capital expenditures included in accounts payable and accrued liabilities | 13,812 | $ 13,059 |
Financed insurance | 407 | |
Accrued dividends payable adjustment | 322 | |
Maben Asset Acquisition | ||
Cash flow from investing activities: | ||
Maben acquisition bond recovery | $ 1,182 |
Note 1 - Business and Basis of
Note 1 - Business and Basis of Presentation | 3 Months Ended |
Mar. 31, 2023 | |
Notes to Financial Statements | |
BUSINESS AND BASIS OF PRESENTATION | NOTE 1—BUSINESS AND BASIS OF PRESENTATION Ramaco Resources, Inc. (the “Company,” “we,” “us” or “our,”) is a Delaware corporation formed in October 2016. Our principal corporate and executive offices are located in Lexington, Kentucky with operational offices in Charleston, West Virginia and Sheridan, Wyoming. We are an operator and developer of high-quality, low-cost metallurgical coal in southern West Virginia, southwestern Virginia, and southwestern Pennsylvania. We also control mineral deposits near Sheridan, Wyoming as part of the Company’s initiatives regarding the potential recovery of rare earth elements as well as the potential commercialization of coal-to-carbon-based products and materials. Economic Conditions— Basis of Presentation In the opinion of the Company, the accompanying unaudited condensed consolidated financial statements include all adjustments, consisting of only normal recurring adjustments, necessary for a fair statement of the Company’s financial position as of March 31, 2023, as well as the results of operations and cash flows for all periods presented. In preparing the accompanying financial statements, management has made certain estimates and assumptions that affect reported amounts in the condensed consolidated financial statements and disclosures of contingencies. Actual results may differ from those estimates. The results for interim periods are not necessarily indicative of annual results. Intercompany balances and transactions between consolidated entities have been eliminated. There were no material changes to the Company’s significant accounting policies during the first quarter of 2023. |
Note 2 - Inventory
Note 2 - Inventory | 3 Months Ended |
Mar. 31, 2023 | |
Inventories | |
INVENTORIES | NOTE 2—INVENTORIES Inventories consisted of the following: (In thousands) March 31, 2023 December 31, 2022 Raw coal $ 32,449 $ 22,414 Saleable coal 14,186 18,223 Supplies 4,336 4,336 Total inventories $ 50,971 $ 44,973 |
Note 3 - Property, Plant and Eq
Note 3 - Property, Plant and Equipment | 3 Months Ended |
Mar. 31, 2023 | |
Notes to Financial Statements | |
PROPERTY, PLANT AND EQUIPMENT | NOTE 3—PROPERTY, PLANT AND EQUIPMENT Property, plant, and equipment consisted of the following: (In thousands) March 31, 2023 December 31, 2022 Plant and equipment $ 243,421 $ 232,885 Mining property and mineral rights 120,760 120,760 Construction in process 44,457 34,698 Capitalized mine development costs 157,345 153,436 Less: accumulated depreciation and amortization (121,908) (111,937) Total property, plant and equipment, net $ 444,075 $ 429,842 On July 10, 2022, the Company experienced a methane ignition at the Berwind No. 1 mine, which was one of the active mines at our Berwind mining complex. The other mines resumed production while the Berwind No. 1 mine was idled until a full investigation could be conducted. There were no personnel in the mine at the time of the incident and no injuries or fatalities occurred. Production from the Berwind No. 1 mine restarted in the first quarter of 2023. Depreciation, depletion, and amortization included: Three months ended March 31, (In thousands) 2023 2022 Depreciation of plant and equipment $ 6,769 $ 4,754 Amortization of right of use assets (finance leases) 1,881 714 Amortization and depletion of capitalized mine development costs and mineral rights 3,202 3,212 Total depreciation, depletion, and amortization $ 11,852 $ 8,680 |
Note 4 - Debt
Note 4 - Debt | 3 Months Ended |
Mar. 31, 2023 | |
Notes To Financial Statements | |
DEBT | NOTE 4—DEBT Outstanding debt consisted of the following: (In thousands) March 31, 2023 December 31, 2022 Revolving Credit Facility $ 50,000 $ 25,000 Equipment loans 6,651 8,396 Senior Notes, net 32,945 32,830 Financing of Ramaco Coal acquisition - Related party debt 30,000 40,000 Financing of Maben Coal acquisition 18,600 21,000 Total debt $ 138,196 $ 127,226 Current portion of long-term debt 59,684 75,639 Long-term debt, net $ 78,512 $ 51,587 Revolving Credit Facility— Revolving loans under the new facility bear interest at either the base rate plus 1.50% or the Secured Overnight Financing Rate plus 2.00%. The base rate equals the highest of the administrative agent’s prime rate, the Federal Funds Effective Rate plus 0.5%, or 3%. The terms of the new facility include covenants limiting the ability of the Company to incur additional indebtedness, make investments or loans, incur liens, consummate mergers and similar fundamental changes, make restricted payments, and enter into transactions with affiliates. The terms of the new facility also require the Company to maintain certain covenants, including fixed charge coverage ratio and compensating balance requirements, with which the Company was in compliance at March 31, 2023. The Company’s Senior Notes had an estimated fair value of $36 million at both March 31, 2023 and December 31, 2022. The fair values of the Company’s Senior Notes were based on observable market prices and were considered a Level 2 measurement based on trading volumes. The difference between the fair value and carrying amount of the Company’s remaining debts is not material due to the similarity between the terms of the debt agreements and prevailing market terms available to the Company. Finance lease obligations and liabilities related to insurance premium financing are excluded from the disclosures above. |
Note 5 - Accrued Expenses and O
Note 5 - Accrued Expenses and Other Long-Term Liabilities | 3 Months Ended |
Mar. 31, 2023 | |
Notes To Financial Statements | |
ACCRUED EXPENSES AND OTHER LONG-TERM LIABILITIES | NOTE 5—ACCRUED LIABILITIES AND OTHER LONG-TERM LIABILITIES Accrued liabilities at March 31, 2023 consisted of accrued compensation and related benefits of $11.1 million, accrued purchases of $6.9 million, and various other liabilities. Accrued liabilities at December 31, 2022 consisted of accrued compensation and related benefits of $14.3 million, accrued purchases of $11.5 million, and various other liabilities. The decrease in accrued compensation and related benefits was driven by the payment of annual bonuses earned and accrued in 2022. The decrease in accrued purchases was offset by the increase in accounts payable during the first quarter of 2023. Self-Insurance The estimated aggregate liability for these items totaled $4.8 million and $3.6 million as of March 31, 2023 and December 31, 2022, respectively. Of the aggregate liability, the amounts included in other long-term liabilities were $2.9 million and $2.7 million as of March 31, 2023 and December 31, 2022, respectively. Funds held in escrow for potential future workers’ compensation claims are considered restricted cash and have been included in other current assets on the condensed consolidated balance sheets. Restricted cash balances were $0.9 million at March 31, 2023 and December 31, 2022. |
Note 6 - Equity
Note 6 - Equity | 3 Months Ended |
Mar. 31, 2023 | |
Notes To Financial Statements | |
EQUITY | NOTE 6—EQUITY Stock-Based Compensation Awards— Restricted Stock— restricted stock granted to employees during the quarter was $2.5 million, which will be recognized ratably as expense over the three-year service period unless forfeited. The aggregate fair value of restricted stock granted to directors during the quarter was $0.6 million, which will be recognized ratably as expense over 2023 unless forfeited. During the vesting period, the participants have voting rights and may receive dividends. Restricted Stock Units— Performance Stock Units— The target number of performance stock units granted during the quarter, or 518,348 units, were valued relative to the total shareholder return of a peer group based on a Monte Carlo simulation, which resulted in a grant date fair value of $18.09 per unit. The aggregate fair value of these awards was $9.4 million, which will be recognized ratably as expense over the three-year period. In addition, performance stock units granted in 2022, or 248,706 units at target, were modified during the first quarter of 2023. Modifications to these awards were made up primarily of changes in the composition of the peer group as well as changes in the way relative total shareholder return is evaluated against the updated peer group. The modification resulted in incremental fair value of $1.2 million to be recognized as expense over 2023 and 2024. Dividends – On December 8, 2022, the Company announced that its Board of Directors declared a quarterly cash dividend of approximately $0.1250 per share of common stock. Estimated dividends of $5.5 million were accrued in December 2022 and were paid on March 15, 2023 to shareholders of record on March 1, 2023 in the amount of $5.6 million. Refer to Note 12 for information regarding dividends declared after the date of the financial statements. On February 18, 2022, the Company announced that its Board of Directors approved an increase in its initial quarterly cash dividend to $5.0 million from the formerly approved $2.5 million that was declared and accrued in December 2021. Dividends in the amount of $5.0 million, or approximately $0.11 per share of common stock, were paid on March 15, 2022 to shareholders of record on March 1, 2022. |
Note 7 - Commitments and Contin
Note 7 - Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2023 | |
Notes To Financial Statements | |
COMMITMENTS AND CONTINGENCIES. | NOTE 7—COMMITMENTS AND CONTINGENCIES Environmental Liabilities — Surety Bond — Coal Leases and Associated Royalty Commitments regardless of the amount of coal mined and sold. Total royalty expense was $9.0 million and $10.2 million for the three months ended March 31, 2023 and March 31, 2022, respectively. These agreements generally have terms running through exhaustion of all the mineable and merchantable coal covered by the respective lease. Royalties or throughput payments are based on a percentage of the gross selling price received for the coal we mine. Contingent Transportation Purchase Commitments Litigation On November 5, 2018, one of our three raw coal storage silos that fed our Elk Creek plant experienced a partial structural failure. A temporary conveying system completed in late-November 2018 restored approximately 80% of our plant capacity. We completed a permanent belt workaround and restored the preparation plant to its full processing capacity in mid-2019. Our insurance carrier, Federal Insurance Company, disputed our claim for coverage based on certain exclusions to the applicable policy and, therefore, on August 21, 2019, we filed suit against Federal Insurance Company and Chubb INA Holdings, Inc. in Logan County Circuit Court in West Virginia seeking a declaratory judgment that the partial silo collapse was an insurable event and to require coverage under our policy. Defendants removed the case to the United States District Court for the Southern District of West Virginia, and upon removal, we substituted ACE American Insurance Company as a defendant in place of Chubb INA Holdings, Inc. The trial in the matter commenced on June 29, 2021, in Charleston, West Virginia. On July 15, 2021, the jury returned a verdict in our favor for $7.7 million in compensatory damages and on July 16, 2021, made an additional award of $25.0 million for inconvenience and aggravation. On August 12, 2021, the defendants filed a post-trial motion for judgment as a matter of law or in the alternative to alter or amend the judgment or for a new trial. The parties fully briefed the motion, and it stood submitted on August 31, 2021. On March 4, 2022, the court entered its memorandum opinion and order on the motion reducing the jury award to a total of $1.8 million, including pre-judgment interest, based largely on the court’s decision to vacate and set aside, in its entirety, the jury award of damages for inconvenience and aggravation. The same day, the court entered the judgment in accordance with the memorandum opinion and order. On April 1, 2022, we filed a notice of appeal with the U.S. Court of Appeals for the Fourth Circuit. The matter has been fully briefed by the parties, and the court heard oral argument on January 27, 2023. The matter is now pending before the court. |
Note 8 - Revenue
Note 8 - Revenue | 3 Months Ended |
Mar. 31, 2023 | |
Notes to Financial Statements | |
REVENUE. | NOTE 8—REVENUE Our revenue is derived from contracts for the sale of coal and is recognized when the performance obligations under the contract are satisfied, which is at the point in time control is transferred to our customer. Generally, domestic sales contracts have terms of about one year and the pricing is typically fixed. Export sales have spot or term contracts, and pricing can be either fixed or derived against index-based pricing mechanisms. Sales completed with delivery to an export terminal are reported as export revenue. Disaggregated information about our revenue is presented below: Three months ended March 31, (In thousands) 2023 2022 Coal Sales North American revenue $ 40,027 $ 60,094 Export revenue, excluding Canada 126,333 94,788 Total revenue $ 166,360 $ 154,882 As of March 31, 2023, the Company had outstanding performance obligations of approximately 1.9 million tons for contracts with fixed sales prices averaging $197 per ton, excluding freight, which will generally be satisfied within the next year, and 0.8 million tons for contracts with index-based pricing mechanisms. Index-based prices have not been estimated for the purpose of disclosing remaining performance obligations as permitted under the revenue recognition guidance when variable consideration is allocated entirely to a wholly unsatisfied performance obligation. Concentrations— |
Note 9 - Income Taxes
Note 9 - Income Taxes | 3 Months Ended |
Mar. 31, 2023 | |
Notes to Financial Statements | |
INCOME TAXES | NOTE 9—INCOME TAXES Income tax provisions for interim quarterly periods are generally based on an estimated annual effective income tax rate calculated separately from the effect of significant, infrequent, or unusual items related specifically to interim periods. The income tax impacts of discrete items are recognized in the period these occur. Our effective tax rate for the three months ended March 31, 2023 and March 31, 2022 was 18.0% and 19.5%, respectively. The primary difference from the federal statutory rate of 21% in each period is related to state taxes, non-deductible expenses, the foreign derived intangible income deduction, and depletion expense for income tax purposes. |
Note 10 - Earnings Per Share
Note 10 - Earnings Per Share | 3 Months Ended |
Mar. 31, 2023 | |
Notes to Financial Statements | |
EARNINGS PER SHARE | NOTE 10—EARNINGS PER SHARE The following is the computation of basic and diluted EPS: Three months ended March 31, (In thousands, except per share amounts) 2023 2022 Numerator Net income $ 25,257 $ 41,471 Denominator Weighted average shares used to compute basic earnings per share 44,281 44,181 Dilutive effect of stock option awards 411 605 Dilutive effect of restricted stock units — 122 Weighted average shares used to compute diluted earnings per share 44,692 44,908 Earnings per share Basic $ 0.57 $ 0.94 Diluted $ 0.57 $ 0.92 Diluted earnings per share for the three months ended March 31, 2023, excludes all outstanding restricted stock units (396 thousand units on a weighted average outstanding basis) because the effect would have been antidilutive. In addition, diluted earnings per share for the three months ended March 31, 2023 and March 31, 2022 exclude all performance stock units, as discussed earlier in Note 6. The performance stock units were excluded based on the guidance for contingently issuable shares, which requires exclusion when the shares would not be issuable if the end of the reporting period were the end of the contingency period, or, otherwise, the effect would have been antidilutive. |
Note 11 - Related Party Transac
Note 11 - Related Party Transactions | 3 Months Ended |
Mar. 31, 2023 | |
Notes to Financial Statements | |
RELATED PARTY TRANSACTIONS | NOTE 11—RELATED PARTY TRANSACTIONS Ramaco Coal Deferred Purchase Price— Mineral Lease and Surface Rights Agreements —Prior to the acquisition of Ramaco Coal, m Administrative Services Legal Services —Some of the professional legal services we receive are provided by Jones & Associates (“Jones”), a related party. |
Note 12 - Subsequent Events
Note 12 - Subsequent Events | 3 Months Ended |
Mar. 31, 2023 | |
Notes To Financial Statements | |
SUBSEQUENT EVENTS | NOTE 12—SUBSEQUENT EVENTS On April 12, 2023, the Company announced that its Board of Directors declared a quarterly cash dividend of $0.1250 per share of common stock to be paid On April 26, 2023, the Company filed a definitive proxy statement regarding a special meeting of shareholders to be held on June 12, 2023. At the meeting, which will be held virtually, shareholders will be asked to vote for a charter amendment proposal to approve the adoption of an amendment and restatement of our amended and restated certificate of incorporation. Such amendment contemplates, among other things, (1) reclassifying our existing common stock as shares of Class A common stock, par value $0.01 per share, (2) creating a separate Class B common stock (a tracking stock), par value $0.01 per share, and (3) providing our board of directors the option, in its sole discretion, to exchange all outstanding shares of the Class B common stock into shares of Class A common stock based on an exchange ratio determined by a 20-day trailing volume-weighted average price for each class of stock. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Summary of Significant Accounting Policies. | |
Basis of Presentation | Basis of Presentation In the opinion of the Company, the accompanying unaudited condensed consolidated financial statements include all adjustments, consisting of only normal recurring adjustments, necessary for a fair statement of the Company’s financial position as of March 31, 2023, as well as the results of operations and cash flows for all periods presented. In preparing the accompanying financial statements, management has made certain estimates and assumptions that affect reported amounts in the condensed consolidated financial statements and disclosures of contingencies. Actual results may differ from those estimates. The results for interim periods are not necessarily indicative of annual results. Intercompany balances and transactions between consolidated entities have been eliminated. There were no material changes to the Company’s significant accounting policies during the first quarter of 2023. |
Concentrations | Concentrations— |
Note 2 - Inventories (Tables)
Note 2 - Inventories (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Inventories | |
Summary of Inventories | Inventories consisted of the following: (In thousands) March 31, 2023 December 31, 2022 Raw coal $ 32,449 $ 22,414 Saleable coal 14,186 18,223 Supplies 4,336 4,336 Total inventories $ 50,971 $ 44,973 |
Note 3 - Property, Plant and _2
Note 3 - Property, Plant and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Property, Plant and Equipment. | |
Schedule of property, plant, and equipment | (In thousands) March 31, 2023 December 31, 2022 Plant and equipment $ 243,421 $ 232,885 Mining property and mineral rights 120,760 120,760 Construction in process 44,457 34,698 Capitalized mine development costs 157,345 153,436 Less: accumulated depreciation and amortization (121,908) (111,937) Total property, plant and equipment, net $ 444,075 $ 429,842 |
Schedule of depreciation and amortization | Three months ended March 31, (In thousands) 2023 2022 Depreciation of plant and equipment $ 6,769 $ 4,754 Amortization of right of use assets (finance leases) 1,881 714 Amortization and depletion of capitalized mine development costs and mineral rights 3,202 3,212 Total depreciation, depletion, and amortization $ 11,852 $ 8,680 |
Note 4 - Debt (Tables)
Note 4 - Debt (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of outstanding debt | Outstanding debt consisted of the following: (In thousands) March 31, 2023 December 31, 2022 Revolving Credit Facility $ 50,000 $ 25,000 Equipment loans 6,651 8,396 Senior Notes, net 32,945 32,830 Financing of Ramaco Coal acquisition - Related party debt 30,000 40,000 Financing of Maben Coal acquisition 18,600 21,000 Total debt $ 138,196 $ 127,226 Current portion of long-term debt 59,684 75,639 Long-term debt, net $ 78,512 $ 51,587 |
Note 8 - Revenue (Tables)
Note 8 - Revenue (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of disaggregation of revenue | Three months ended March 31, (In thousands) 2023 2022 Coal Sales North American revenue $ 40,027 $ 60,094 Export revenue, excluding Canada 126,333 94,788 Total revenue $ 166,360 $ 154,882 |
Note 10 - Earnings Per Share (T
Note 10 - Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Notes Tables | |
Schedule computation of basic and diluted EPS | The following is the computation of basic and diluted EPS: Three months ended March 31, (In thousands, except per share amounts) 2023 2022 Numerator Net income $ 25,257 $ 41,471 Denominator Weighted average shares used to compute basic earnings per share 44,281 44,181 Dilutive effect of stock option awards 411 605 Dilutive effect of restricted stock units — 122 Weighted average shares used to compute diluted earnings per share 44,692 44,908 Earnings per share Basic $ 0.57 $ 0.94 Diluted $ 0.57 $ 0.92 |
Note 2 - Inventories (Details)
Note 2 - Inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Inventories | ||
Raw Coal | $ 32,449 | $ 22,414 |
Saleable Coal | 14,186 | 18,223 |
Coal Supplies | 4,336 | 4,336 |
Total Inventories | $ 50,971 | $ 44,973 |
Note 3 - Property, Plant and _3
Note 3 - Property, Plant and Equipment - Schedule of Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Property, plant, and equipment | ||
Less: Accumulated depreciation and amortization | $ (121,908) | $ (111,937) |
Total property, plant and equipment, net | 444,075 | 429,842 |
Plant and equipment | ||
Property, plant, and equipment | ||
Property, plant and equipment, gross | 243,421 | 232,885 |
Mining property and mineral rights | ||
Property, plant, and equipment | ||
Property, plant and equipment, gross | 120,760 | 120,760 |
Construction in process | ||
Property, plant, and equipment | ||
Property, plant and equipment, gross | 44,457 | 34,698 |
Capitalized mine development costs | ||
Property, plant, and equipment | ||
Property, plant and equipment, gross | $ 157,345 | $ 153,436 |
Note 3 - Property, Plant and _4
Note 3 - Property, Plant and Equipment - Depreciation and amortization (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Property, Plant and Equipment. | ||
Depreciation of plant and equipment | $ 6,769 | $ 4,754 |
Amortization of right of use assets (finance leases) | 1,881 | 714 |
Amortization and depletion of capitalized mine development costs and mineral rights | 3,202 | 3,212 |
Total depreciation and amortization | $ 11,852 | $ 8,680 |
Note 4 - Debt - Summary of Outs
Note 4 - Debt - Summary of Outstanding Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
Total debt | $ 138,196 | $ 127,226 |
Current portion of long-term debt | 59,684 | 75,639 |
Long term debt, net | 78,512 | 51,587 |
Revolving Credit Facility | ||
Total debt | 50,000 | 25,000 |
Equipment loans | ||
Total debt | 6,651 | 8,396 |
Senior Notes, net | ||
Total debt | 32,945 | 32,830 |
Financing of Ramaco Coal acquisition - Related party debt | ||
Total debt | 30,000 | 40,000 |
Financing of Maben Coal acquisition | ||
Total debt | $ 18,600 | $ 21,000 |
Note 4 - Debt (Details)
Note 4 - Debt (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Feb. 15, 2023 | Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Debt | ||||
Current portion of long-term debt | $ 29,684 | $ 35,639 | ||
Other income | 1,247 | $ 366 | ||
Outstanding principal amount | 138,196 | $ 127,226 | ||
Secured overnight financing rate | ||||
Debt | ||||
Debt Instrument, Basis Spread on Variable Rate | 2% | |||
Base Rate | ||||
Debt | ||||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | |||
Base Rate | Minimum | ||||
Debt | ||||
Effective interest rate | 0.50% | |||
Base Rate | Maximum | ||||
Debt | ||||
Effective interest rate | 3% | |||
Revolving Credit Facility | ||||
Debt | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 125,000 | |||
Accordion feature | $ 50,000 | |||
Amount of remaining availability | 28,800 | |||
Repayment of related party debt | 10,000 | |||
Senior Notes, net | ||||
Debt | ||||
Estimated fair value | $ 36,000 | $ 36,000 |
Note 5 - Accrued Expenses and_2
Note 5 - Accrued Expenses and Other Long-Term Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Accrued compensation and related benefits | $ 11.1 | $ 14.3 |
Various other liabilities | 6.9 | 11.5 |
Uninsured claims | 4.8 | 3.6 |
Restricted Cash | 0.9 | 0.9 |
Other long-term liabilities | ||
Uninsured claims | $ 2.9 | $ 2.7 |
Note 6 - Equity - Summary of Re
Note 6 - Equity - Summary of Restricted Awards Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |||||||
Apr. 12, 2023 | Mar. 15, 2023 | Dec. 08, 2022 | Mar. 15, 2022 | Feb. 18, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Compensation costs | $ 2,900 | $ 1,900 | ||||||
Quarterly cash dividend declared per share | $ 0.1250 | |||||||
Dividend declared | $ 0.1250 | |||||||
Dividend accrued not paid | $ 2,500 | 354 | $ 2,497 | |||||
Dividend payable | $ 5,600 | $ 5,000 | $ 322 | $ 5,500 | ||||
Dividends paid | $ 0.1250 | $ 0.11 | ||||||
Restricted Stock Units | ||||||||
Granted, shares (in shares) | 518,348 | |||||||
Granted, Weighted average grant date fair value (in dollars per share) | $ 10.61 | |||||||
Fair value of awards | $ 5,500 | |||||||
Vesting period | 3 years | |||||||
Delivery Period | 30 days | |||||||
Shares delivered per unit awarded | 1 | |||||||
Performance Stock Units | ||||||||
Vesting period | 3 years | |||||||
Delivery Period | 30 days | |||||||
Executives and Employees | Restricted Stock | ||||||||
Granted, shares (in shares) | 296,115 | |||||||
Granted, Weighted average grant date fair value (in dollars per share) | $ 10.61 | |||||||
Fair value of awards | $ 2,500 | |||||||
Vesting period | 3 years | |||||||
Executives and Employees | Performance Stock Units | ||||||||
Granted, shares (in shares) | 518,348 | |||||||
Granted, Weighted average grant date fair value (in dollars per share) | $ 18.09 | |||||||
Fair value of awards | $ 9,400 | |||||||
Vesting period | 3 years | |||||||
Shares delivered per unit awarded | 1 | |||||||
Executives and Employees | Performance Stock Units | Minimum | ||||||||
Potential earnings (as a percentage) | 0% | |||||||
Executives and Employees | Performance Stock Units | Maximum | ||||||||
Potential earnings (as a percentage) | 200% | |||||||
Executives and Employees | Performance Stock Units Granted in 2022 | ||||||||
Granted, shares (in shares) | 248,706 | |||||||
Fair value of awards | $ 1,200 | |||||||
Directors | Restricted Stock | ||||||||
Fair value of awards | $ 600 |
Note 7 - Commitments and Cont_2
Note 7 - Commitments and Contingencies (Details) - USD ($) $ in Millions | 3 Months Ended | ||||
Mar. 04, 2022 | Jul. 16, 2021 | Jul. 15, 2021 | Mar. 31, 2023 | Mar. 31, 2022 | |
COMMITMENTS AND CONTINGENCIES | |||||
Compensatory damages | $ 1.8 | $ 7.7 | |||
Royalty Expense | $ 9 | $ 10.2 | |||
Award to cover inconvenience and aggravation | $ 25 | ||||
Surety Bond | |||||
COMMITMENTS AND CONTINGENCIES | |||||
Asset Retirement Obligation | 26 | ||||
Take-or-pay Purchase Commitments | |||||
COMMITMENTS AND CONTINGENCIES | |||||
Amount of contingent liability | 0 | ||||
Commitment | 22.5 | ||||
Total commitment | $ 39.9 | ||||
Commitment term | 5 years |
Note 8 - Revenue (Details)
Note 8 - Revenue (Details) T in Millions | Mar. 31, 2023 T |
Contracts with Indexed Based Pricing Mechanisms | |
REVENUES | |
Outstanding performance obligation, mass | 0.8 |
Fixed Priced Contracts | |
REVENUES | |
Outstanding performance obligation, mass | 1.9 |
Note 8 - Revenue - Domestic Rev
Note 8 - Revenue - Domestic Revenues an Export Revenues (Details) $ in Thousands, T in Millions | 3 Months Ended | |
Mar. 31, 2023 USD ($) T $ / T | Mar. 31, 2022 USD ($) | |
REVENUES | ||
Revenues | $ 166,360 | $ 154,882 |
Term of domestic sales contracts | 1 year | |
Domestic Coal Revenues | ||
REVENUES | ||
Revenues | $ 40,027 | 60,094 |
Export Revenues | ||
REVENUES | ||
Revenues | $ 126,333 | $ 94,788 |
Fixed Priced Contracts | ||
REVENUES | ||
Outstanding performance obligation, mass | T | 1.9 | |
Average per ton | $ / T | 197 | |
Contracts with Indexed Based Pricing Mechanisms | ||
REVENUES | ||
Outstanding performance obligation, mass | T | 0.8 |
Note 8 - Revenue - Concentratio
Note 8 - Revenue - Concentrations (Details) - customer | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Revenue Benchmark | ||
Concentrations | ||
Number of Major Customers | 4 | |
Customer Concentration Risk | Revenue Benchmark | ||
Concentrations | ||
Number of Major Customers | 4 | |
Customer Concentration Risk | Revenue Benchmark | Total Customer Base | ||
Concentrations | ||
Concentration Risk, Percentage | 63% | 70% |
Customer Concentration Risk | Accounts Receivable. | ||
Concentrations | ||
Number of Major Customers | 4 | |
Customer Concentration Risk | Accounts Receivable. | Total Customer Base | ||
Concentrations | ||
Concentration Risk, Percentage | 61% | |
Minimum | Customer Concentration Risk | Revenue Benchmark | Total Customer Base | ||
Concentrations | ||
Concentration Risk, Percentage | 10% |
Note 9 - Income Taxes (Details)
Note 9 - Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Taxes. | ||
Deferred income taxes | $ 2,154 | $ 5,015 |
Income tax expense | $ 5,548 | $ 10,655 |
Effective Income Tax Rate Reconciliation, Percent, Total | 18% | 19.50% |
Statutory rate | 21% |
Note 14 - Earnings Per Share -
Note 14 - Earnings Per Share - Computation of Basic and Diluted Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
EARNINGS PER SHARE | ||
Net income | $ 25,257 | $ 41,471 |
Weighted average shares used to compute basic EPS (in shares) | 44,281 | 44,181 |
Weighted average shares used to compute diluted EPS (in shares) | 44,692 | 44,908 |
Basic (in dollars per share) | $ 0.57 | $ 0.94 |
Diluted (in dollars per share) | $ 0.57 | $ 0.92 |
Options | ||
EARNINGS PER SHARE | ||
Dilutive effect of stock-based awards (in shares) | 411 | 605 |
Restricted Stock Units | ||
EARNINGS PER SHARE | ||
Dilutive effect of stock-based awards (in shares) | 122 | |
Antidilutive shares | 396 |
Note 11 - Related Party Trans_2
Note 11 - Related Party Transactions (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Legal services payable | $ 30,000 | $ 40,000 | |
Interest expense, net | (2,309) | $ (1,130) | |
Jones & Associates | |||
Legal services payable | 600 | ||
Legal Services | |||
Legal services paid | 0 | ||
Ramaco Coal, LLC | |||
Amount of related party debt paid | 10,000 | ||
Due to Related Parties, Total | 30,000 | ||
Royalties paid | $ 2,000 | ||
Interest expense, net | 800 | ||
Ramaco Coal, LLC | On-Going Administrative Services | |||
Related party fees | $ 23 |
Note 12 - Subsequent Events (De
Note 12 - Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | ||||||||||
Jun. 15, 2023 | Apr. 12, 2023 | Mar. 15, 2023 | Feb. 15, 2023 | Mar. 15, 2022 | Mar. 04, 2022 | Jul. 15, 2021 | Mar. 31, 2023 | Apr. 26, 2023 | Dec. 31, 2022 | Feb. 18, 2022 | |
Subsequent Events | |||||||||||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |||||||||
Quarterly cash dividend declared per share | $ 0.1250 | ||||||||||
Dividends paid | $ 0.1250 | $ 0.11 | |||||||||
Compensatory damages | $ 1,800 | $ 7,700 | |||||||||
Dividend payable | $ 5,600 | $ 322 | $ 5,500 | $ 5,000 | |||||||
Base Rate | |||||||||||
Subsequent Events | |||||||||||
Interest rate, basis spread | 1.50% | ||||||||||
Secured overnight financing rate | |||||||||||
Subsequent Events | |||||||||||
Interest rate, basis spread | 2% | ||||||||||
Revolving Credit Facility | |||||||||||
Subsequent Events | |||||||||||
Repayment of related party debt | 10,000 | ||||||||||
Amount of remaining availability | $ 28,800 | ||||||||||
Subsequent Event | |||||||||||
Subsequent Events | |||||||||||
Dividends paid | $ 0.1250 | ||||||||||
Subsequent Event | Common Stock, $0.01 par value | |||||||||||
Subsequent Events | |||||||||||
Common stock, par value (in dollars per share) | $ 0.01 | ||||||||||
Subsequent Event | Common Stock, Class B $0.01 par value | |||||||||||
Subsequent Events | |||||||||||
Common stock, par value (in dollars per share) | $ 0.01 |