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)