We define Adjusted EBITDA as net income plus net interest expense; equity-based compensation; depreciation, depletion, and amortization expenses; income taxes; certain other non-operating items (income tax penalties and charitable contributions), and accretion of asset retirement obligations. Its most comparable GAAP measure is net income. A reconciliation of net income to Adjusted EBITDA is included below. Adjusted EBITDA is not intended to serve as a substitute for GAAP measures of performance and may not be comparable to similarly titled measures presented by other companies.
Nine months ended
Q3 Q2 Q3 September 30,
------ ------ ------ -----------------------
(In thousands) 2024 2024 2023 2024 2023
------ ------ ------ ------- --------------
Reconciliation
of Net Income
(Loss) to
Adjusted
EBITDA
Net income
(loss) $ (239) $ 5,541 $19,462 $ 7,334 $ 52,275
Depreciation,
depletion,
and
amortization 17,811 15,879 14,443 48,909 39,850
Interest
expense, net 1,696 1,481 2,447 4,509 7,274
Income tax
expense 61 915 5,505 1,517 13,521
------ ------ ------ ------ -------------
EBITDA 19,329 23,816 41,857 62,269 112,920
Stock-based
compensation 3,970 4,583 3,201 13,255 9,706
Other
non-operating (36) 45 -- 9 --
Accretion of
asset
retirement
obligations 354 354 349 1,063 1,049
------ ------ ------ ------ -------------
Adjusted
EBITDA $23,617 $28,798 $45,407 $76,596 $ 123,675
====== ====== ====== ====== =============
Non-GAAP revenue and cash cost per ton
Non-GAAP revenue per ton (FOB mine) is calculated as coal sales revenue less transportation costs including demurrage costs, divided by tons sold. Non-GAAP cash cost per ton sold (FOB mine) is calculated as cash cost of coal sales less transportation costs, alternative mineral development costs, and idle and other costs, divided by tons sold. We believe revenue per ton (FOB mine) and cash cost per ton (FOB mine) provide useful information to investors as these enable investors to compare revenue per ton and cash cost per ton for the Company against similar measures made by other publicly-traded coal companies and more effectively monitor changes in coal prices and costs from period to period excluding the impact of transportation costs, which are beyond our control, and alternative mineral costs, which are more developmentally focused currently. The adjustments made to arrive at these measures are significant in understanding and assessing the Company's financial performance. Revenue per ton sold (FOB mine) and cash cost per ton sold (FOB mine) are not measures of financial performance in accordance with GAAP and therefore should not be considered as a substitute for revenue and cost of sales under GAAP. The tables below show how we calculate non-GAAP revenue and cash cost per ton:
Non-GAAP revenue per ton (unaudited)
Nine months ended
Q3 Q2 Q3 September 30,
-------- -------- -------- -------------------------
(In thousands,
except per ton
amounts) 2024 2024 2023 2024 2023
-------- -------- -------- -------- -------------
Revenue $ 167,411 $ 155,315 $ 186,966 $ 495,403 $ 490,795
Less:
Adjustments to
reconcile to
Non-GAAP revenue
(FOB mine)
Transportation (28,582) (24,218) (30,433) (81,086) (74,610)
-------- -------- -------- -------- -------------
Non-GAAP revenue
(FOB mine) $ 138,829 $ 131,097 $ 156,533 $ 414,317 $ 416,185
Tons sold 1,023 915 996 2,867 2,467
Non-GAAP revenue
per ton sold
(FOB mine) $ 136 $ 143 $ 157 $ 145 $ 169
Non-GAAP cash cost per ton (unaudited)
Nine months ended
Q3 Q2 Q3 September 30,
-------- -------- -------- -----------------------
(In thousands,
except per ton
amounts) 2024 2024 2023 2024 2023
-------- -------- -------- -------- -----------
Cost of sales $ 134,731 $ 122,770 $ 144,635 $ 397,214 $ 354,383
Less:
Adjustments to
reconcile to
Non-GAAP cash
cost of sales
Transportation
costs (28,551) (22,872) (30,254) (80,299) (74,467)
Alternative
mineral
development
costs (1,363) (1,124) (1,200) (3,618) (2,746)
Idle and other
costs (244) (305) (378) (786) (2,937)
-------- -------- -------- -------- -----------
Non-GAAP cash
cost of sales $ 104,573 $ 98,469 $ 112,803 $ 312,511 $ 274,233
Tons sold 1,023 915 996 2,867 2,467
Non-GAAP cash
cost per ton
sold (FOB
mine) $ 102 $ 108 $ 113 $ 109 $ 111
We do not provide reconciliations of our outlook for cash cost per ton to cost of sales in reliance on the unreasonable efforts exception provided for under Item 10(e)(1)(i)$(B)$ of Regulation S-K. We are unable, without unreasonable efforts, to forecast certain items required to develop the meaningful comparable GAAP cost of sales. These items typically include non-cash asset retirement obligation accretion expenses, mine idling expenses and other non-recurring indirect mining expenses that are difficult to predict in advance in order to include a GAAP estimate.
# # #
View original content:https://www.prnewswire.com/news-releases/ramaco-resources-reports-third-quarter-2024-results-302295819.html
SOURCE Ramaco Resources, Inc.
(END) Dow Jones Newswires
November 04, 2024 16:15 ET (21:15 GMT)
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