10-Q 1 metc-20210331x10q.htm 10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)


⌧	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2021


◻	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number: 001-38003

RAMACO RESOURCES, INC.

(Exact name of registrant as specified in its charter)


Delaware	38-4018838
(State or other jurisdiction	(I.R.S. Employer
of incorporation or organization)	Identification No.)

250 West Main Street, Suite 1800
Lexington, Kentucky	40507
(Address of principal executive offices)	(Zip code)

(859) 244-7455
(Registrant’s telephone number, including area code) Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.01 par value	METC	NASDAQ Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ⌧ No ◻

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ⌧ No ◻

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	◻	Accelerated filer	◻
Non-accelerated filer	⌧	Smaller reporting company	⌧
Emerging growth company	⌧

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ⌧

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ◻ No ⌧

As of May 10, 2021, the registrant had 44,170,288 shares of common stock outstanding.


		Page

PART I. FINANCIAL INFORMATION

Item 1.	Financial Statements	5
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	15
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	21
Item 4.	Controls and Procedures	21

PART II. OTHER INFORMATION
Item 1.	Legal Proceedings	22
Item 1A.	Risk Factors	22
Item 4.	Mine Safety Disclosures	22
Item 6.	Exhibits	23

SIGNATURES		24


	March 31, 2021		December 31, 2020
In thousands, except share and per-share amounts

Assets
Current assets
Cash and cash equivalents	$	5,544	$	5,300
Accounts receivable		21,743		20,299
Inventories		24,190		11,947
Prepaid expenses and other		5,833		4,953
Total current assets		57,310		42,499

Property, plant and equipment – net		177,736		180,455
Advanced coal royalties		5,397		4,784
Other		540		885
Total Assets	$	240,983	$	228,623

Liabilities and Stockholders' Equity
Liabilities
Current liabilities
Accounts payable	$	16,751	$	11,742
Accrued expenses		10,721		11,591
Asset retirement obligations		395		46
Current portion of long-term debt		4,902		4,872
Other current liabilities		485		862
Total current liabilities		33,254		29,113

Asset retirement obligations		14,873		15,110
Long-term debt, net		15,954		12,578
Deferred tax liability		1,596		1,762
Other long-term liabilities		1,013		965
Total liabilities		66,690		59,528

Commitments and contingencies		—		—

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, 44,229,961 at March 31, 2021 and 42,706,908 at December 31, 2020 shares issued and outstanding		442		427
Additional paid-in capital		159,899		158,859
Retained earnings		13,952		9,809
Total stockholders' equity		174,293		169,095
Total Liabilities and Stockholders' Equity	$	240,983	$	228,623


	Three months ended March 31,
In thousands, except per-share amounts	2021		2020

Revenue	$	43,455	$	41,935

Costs and expenses
Cost of sales (exclusive of items shown separately below)		31,198		30,934
Asset retirement obligation accretion		151		141
Depreciation and amortization		6,155		5,002
Selling, general and administrative		4,707		4,717
Total costs and expenses		42,211		40,794

Operating income		1,244		1,141

Other income		2,935		1,210
Interest expense, net		(202)		(279)
Income before tax		3,977		2,072
Income tax (benefit) expense		(166)		110
Net income	$	4,143	$	1,962

Earnings per common share
Basic	$	0.10	$	0.05
Diluted	$	0.10	$	0.05

Basic weighted average shares outstanding		43,443		41,760
Diluted weighted average shares outstanding		43,443		41,760


			Additional				Total
	Common		Paid-		Retained		Stockholders'
In thousands	Stock		in Capital		Earnings		Equity
Balance at January 1, 2021	$	427	$	158,859	$	9,809	$	169,095
Stock-based compensation		15		1,040		—		1,055
Net income		—		—		4,143		4,143
Balance at March 31, 2021		442		159,899		13,952		174,293

Balance at January 1, 2020	$	410	$	154,957	$	14,716	$	170,083
Stock-based compensation		17		906		—		923
Net income		—		—		1,962		1,962
Balance at March 31, 2020		427		155,863		16,678		172,968



(In thousands)	March 31, 2021		December 31, 2020
Plant and equipment	$	157,424	$	155,173
Construction in process		5,551		7,245
Capitalized mine development costs		77,158		74,279
Less: accumulated depreciation and amortization		(62,397)		(56,242)
Total property, plant and equipment, net	$	177,736	$	180,455


		Weighted
		Average Grant
	Shares	Date Fair Value
Outstanding at December 31, 2020	2,845,525		4.28
Granted	1,592,659		4.37
Vested	—		—
Forfeited	(69,606)		4.20
Outstanding at March 31, 2021	4,368,578	$	4.32


	Three months ended March 31,
(In thousands, except per share amounts)	2021		2020
Numerator
Net income	$	4,143	$	1,962
Denominator
Weighted average shares used to compute basic EPS		43,443		41,760
Dilutive effect of stock-based awards		—		—
Weighted average shares used to compute diluted EPS		43,443		41,760

Earnings per share
Basic	$	0.10	$	0.05
Diluted	$	0.10	$	0.05


	Three months ended March 31, 2021						Three months ended March 31, 2020
	Company		Purchased				Company		Purchased
(In thousands, except per ton amounts)	Produced		Coal		Total		Produced		Coal		Total

Revenue	$	41,794	$	1,661	$	43,455	$	41,935	$	—	$	41,935
Less: Adjustments to reconcile to Non-GAAP revenue (FOB mine)
Transportation costs		(5,803)		(421)		(6,224)		(3,105)		—		(3,105)
Non-GAAP revenue (FOB mine)	$	35,991	$	1,240	$	37,231	$	38,830	$	—	$	38,830
Tons sold		406		16		422		416		—		416
Revenue per ton sold (FOB mine)	$	89	$	79	$	88	$	93	$	—	$	93


	Three months ended March 31,
(In thousands)	2021		2020
Coal Sales
North American revenues	$	20,107	$	30,532
Export revenues, excluding Canada		23,348		11,403
Total revenues	$	43,455	$	41,935

SEC Form 10-Q filed by Ramaco Resources, Inc.