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WARRIOR MET COAL Warrior Met Coal Reports First Quarter 2021 Results May 05 , 2021 Maintains positive cash flow despite difficult pricing environment BROOKWOOD , Ala .-- ( BUSINESS WIRE ) -- Warrior Met Coal , Inc. ( NYSE : HCC ) ( " Warrior " or the " Company " ) today announced results for the first quarter of 2021. Warrior is the leading dedicated U.S. based producer and exporter of high quality metallurgical ( " met " ) coal for the global steel industry . Warrior reported a net loss for the first quarter of 2021 of $ 21.4 million , or $ 0.42 per diluted share , compared to net income of $ 21.5 million , or $ 0.42 per diluted share , in the first quarter of 2020. Adjusted net income per share for the first quarter of 2021 was $ 0.08 per diluted share compared to adjusted net income per share of $ 0.39 per diluted share in the first quarter of 2020. The Company reported Adjusted EBITDA of $ 47.1 million in the first quarter of 2021 , compared to Adjusted EBITDA of $ 62.0 million in the first quarter of 2020 . " During the first quarter , we saw COVID - 19 and the Chinese ban on Australian coal have a continued impact on both pricing and demand across the met coal industry , " commented Walt Scheller , CEO of Warrior . " However , we remained focused on successfully managing our costs , working capital and capex spending , which enabled us to be free cash flow positive despite these headwinds . " Mr. Scheller continued , " The end of the first quarter also coincided with the expiration of our Collective Bargaining Agreement with the United Mine Workers of America on April 1. While we continue to negotiate in good faith with the UMWA to reach a new contract , the UMWA has chosen to initiate a strike . " " Importantly , we have business continuity plans in place to continue meeting the needs of our valued customers during this time . " Operating Results The Company produced 2.2 million short tons of met coal in the first quarter of 2021 compared to 2.1 million short tons in the first quarter of 2020 . Sales volume in the first quarter of 2021 was 2.0 million short tons compared to 1.8 million short tons in the first quarter of 2020. Inventory levels rose to 1.2 million short tons at the end of March 31 , 2021 from the 998 thousand short tons at the end of 2020 . Additional Financial Results Total revenues were $ 213.8 million for the first quarter of 2021 , including $ 207.0 million in mining revenues , which consisted of met coal sales of 2.0 million short tons at an average net selling price of $ 106.04 per short ton , net of demurrage and other charges . This compares to total revenues of $ 226.7 million in the first quarter of 2020. The average net selling price of the Company's met coal declined 13 % from $ 122.02 per short ton in the first quarter of 2020 to $ 106.04 per short ton in the first quarter of 2021. During the first quarter of 2021 , the Company averaged a met coal selling price of $ 106.04 per short ton , which corresponds to 95 % of the quarterly Australian premium low - volatility hard coking coal ( " HCC " ) Platts Premium LV FOB Australian Index ( the " Platts Index " ) price for the same period . The year - over - year decline in revenues and profits is primarily attributed to weaker met coal pricing in challenging market conditions associated with the impact of COVID - 19 and the Chinese ban on Australian coal . Cost of sales for the first quarter of 2021 was $ 154.4 million compared to $ 151.5 million for the first quarter of 2020. Cash cost of sales ( including mining , transportation and royalty costs ) for the first quarter of 2021 were $ 153.5 million , or 74.2 % of mining revenues , compared to $ 150.7 million , or 68.1 % of mining revenues in the same period of 2020. Cash cost of sales ( free - on - board port ) per short ton decreased to $ 78.64 in the first quarter of 2021 from $ 83.07 in the first quarter of 2020 , reflecting Warrior's low and variable cost structure and focus on cost control during periods of depressed met coal prices . Selling , general and administrative expenses for the first quarter of 2021 were $ 7.6 million , or 3.6 % of total revenues , and were 9.7 % lower than in the same period last year . Depreciation and depletion costs for the first quarter of 2021 were $ 32.9 million , or 15.4 % of total revenues , and were 14.7 % higher than in the same period last year . Warrior incurred net interest expense of $ 8.7 million during the first quarter of 2021 , which was higher than the same quarter last year due to interest on our ABL draw and lower returns on our cash balances . Income tax expense was $ 23.6 million in the first quarter of 2021 due to a noncash charge recognized upon the establishment of a valuation allowance against our state deferred income tax assets . This result was due to a change in Alabama tax law on February 12 , 2021 , which became effective January 1 , 2021 , and required all sales originating in Alabama and delivered to a jurisdiction where the seller is not subject to tax to be excluded from Alabama taxable income without the need to utilize our Alabama net operating losses . This compares to income tax expense of $ 3.2 million in the first quarter of 2020 . Cash Flow and Liquidity The Company generated positive cash flows from operating activities in the first quarter of 2021 of $ 45.2 million , compared to $ 21.0 million in the first quarter of 2020. Capital expenditures and mine development costs for the first quarter of 2021 were $ 21.8 million . Free cash flow was positive at $ 23.4 million in the first quarter of 2021 reflecting our conscious management of expenses and spending while balancing longer term capital investments . Net working capital , excluding cash , for the first quarter of 2021 decreased by $ 764,000 from the fourth quarter of 2020. This decrease reflects an increase in coal inventory of approximately 200,000 short tons offset by other working capital decreases . Cash flows used in financing activities for the first quarter of 2021 were $ 13.4 million , primarily due to principal repayments of capital lease obligations of $ 8.2 million and the payment of dividends of $ 2.6 million . The Company's total liquidity as of March 31 , 2021 was $ 272.0 million , consisting of cash and cash equivalents of $ 221.9 million and available liquidity under its ABL Facility of $ 50.1 million , net of outstanding letters of credit of $ 9.4 million . Capital Allocation On April 27 , 2021 , the board of directors declared a regular quarterly cash dividend of $ 0.05 per share , totaling approximately $ 2.6 million , which will be paid on May 12 , 2021 to stockholders of record as of the close of business on May 7 , 2021 . Collective Bargaining Agreement