Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2021 | May 10, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Entity Registrant Name | Ramaco Resources, Inc. | |
Document Period End Date | Mar. 31, 2021 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | true | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 44,170,288 | |
Entity Central Index Key | 0001687187 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Unaudited Condensed Consolidate
Unaudited Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
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 |
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 | ||
Common stock, $0.01 par value, 260,000,000 shares authorized, 44,229,961 and 42,706,908 shares issued and outstanding, respectively | 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 |
Unaudited Condensed Consolida_2
Unaudited Condensed Consolidated Balance Sheets (Parentheticals) - $ / shares | Mar. 31, 2021 | Dec. 31, 2020 |
Unaudited Condensed 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) | 44,229,961 | 44,229,961 |
Common stock, shares outstanding (in shares) | 42,706,908 | 312,021 |
Unaudited Condensed Consolida_3
Unaudited Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Unaudited Condensed Consolidated Statements of Operations | ||
Revenue | $ 43,455 | $ 41,935 |
Cost 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 (loss) per common share | ||
Basic earnings (in dollars per share) | $ 0.10 | $ 0.05 |
Diluted earnings (in dollars per share) | $ 0.10 | $ 0.05 |
Weighted average common shares outstanding | ||
Basic weighted average shares outstanding (in shares) | 43,443 | 41,760 |
Diluted weighted average shares outstanding (in shares) | 43,443 | 41,760 |
Unaudited Condensed Consolida_4
Unaudited Condensed Consolidated Statements of Stockholders’ Equity - USD ($) $ in Thousands | Common Stock | Additional Paid-in Capital. | Retained Earnings. | Total |
Balance at Dec. 31, 2019 | $ 410 | $ 154,957 | $ 14,716 | $ 170,083 |
Stock-based compensation | 17 | 906 | 923 | |
Net income | 1,962 | 1,962 | ||
Balance at Mar. 31, 2020 | 427 | 155,863 | 16,678 | 172,968 |
Balance at Dec. 31, 2020 | 427 | 158,859 | 9,809 | 169,095 |
Stock-based compensation | 15 | 1,040 | 1,055 | |
Net income | 4,143 | 4,143 | ||
Balance at Mar. 31, 2021 | $ 442 | $ 159,899 | $ 13,952 | $ 174,293 |
Unaudited Condensed Consolida_5
Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash flows from operating activities | ||
Net income | $ 4,143 | $ 1,962 |
Adjustments to reconcile net income (loss) to net cash from operating activities: | ||
Accretion of asset retirement obligations | 151 | 141 |
Depreciation and amortization | 6,155 | 5,002 |
Amortization of debt issuance costs | 14 | 14 |
Stock-based compensation | 1,055 | 923 |
Other income - employee retention tax credit | (2,462) | |
Deferred income taxes | (166) | 110 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (1,444) | 4,836 |
Prepaid expenses and other current assets | 1,127 | (554) |
Inventories | (12,243) | (8,197) |
Other assets and liabilities | (220) | (214) |
Accounts payable | 5,324 | 2,649 |
Accrued expenses | (935) | (256) |
Net cash from operating activities | 499 | 6,416 |
Cash flow from investing activities: | ||
Purchases of property, plant and equipment | (3,725) | (8,900) |
Net cash from investing activities | (3,725) | (8,900) |
Cash flows from financing activities | ||
Proceeds from borrowings | 11,600 | 22,200 |
Repayment of borrowings | (8,208) | (9,533) |
Repayments of financed insurance payable | (377) | (281) |
Net cash from financing activities | 3,015 | 12,386 |
Net change in cash and cash equivalents and restricted cash | (211) | 9,902 |
Cash and cash equivalents and restricted cash, beginning of period | 6,710 | 6,865 |
Cash and cash equivalents and restricted cash, end of period | 6,499 | 16,767 |
Supplemental cash flow information: | ||
Cash paid for interest | 186 | 242 |
Non-cash investing and financing activities: | ||
Capital expenditures included in accounts payable and accrued expenses | 913 | 2,689 |
Additional asset retirement obligations incurred | $ 26 | $ 9 |
Note 1 - Description of the Bus
Note 1 - Description of the Business | 3 Months Ended |
Mar. 31, 2021 | |
Notes to Financial Statements | |
DESCRIPTION OF BUSINESS | Ramaco Resources, Inc. Notes to Unaudited Condensed Consolidated Financial Statements NOTE 1—BUSINESS Ramaco Resources, Inc. (the “Company,” “we,” “us” or “our,”) is a Delaware corporation formed in October 2016. Our principal corporate offices are located in Lexington, Kentucky. We are an operator and developer of high-quality, low-cost metallurgical coal in southern West Virginia, southwestern Virginia, and southwestern Pennsylvania. COVID-19 Pandemic— The global spread of COVID-19 created significant volatility, uncertainty and economic disruption during 2020. The Company was adversely affected by the deterioration and increased uncertainty in the macroeconomic outlook as a result of the impact of COVID-19. We continue to actively monitor the situation and may take further actions altering our business operations that we determine are in the best interests of our employees, customers, suppliers, and stakeholders, or as required by federal, state, or local authorities. |
Note 2 - Summary of Significant
Note 2 - Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2021 | |
Notes to Financial Statements | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation —These interim financial statements are unaudited and have been prepared pursuant to the rules and regulations of the SEC regarding interim financial reporting. Certain disclosures have been condensed or omitted from these financial statements. Accordingly, they do not include all the information and notes required by accounting principles generally accepted in the United States of America (“GAAP”) for complete consolidated financial statements, and should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report. In the opinion of management, the accompanying unaudited condensed consolidated financial statements include all adjustments, consisting of normal recurring adjustments, necessary to fairly present the financial position as of, and the results of operations 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. Cash and Cash Equivalents —We classify all highly-liquid instruments with an original maturity of three months or less to be cash equivalents. Restricted cash balances were $1.0 million at March 31, 2021 and $1.4 million at December 31, 2020. These consisted of funds held in escrow for potential future workers’ compensation claims and were classified in other current assets in the consolidated balance sheets. Self-Insurance —We are self-insured for certain losses relating to workers’ compensation claims. We purchase insurance coverage to reduce our exposure to significant levels of these claims. Self-insured losses are accrued based upon estimates of the aggregate liability for uninsured claims incurred as of the balance sheet date using current and historical claims experience and certain actuarial assumptions. At March 31, 2021, the estimated aggregate liability for uninsured claims totaled $1.2 million. Of this, $1.0 million is included in other long-term liabilities within the consolidated balance sheets. At December 31, 2020, the estimated aggregate liability for uninsured claims totaled $1.7 million including $0.9 million included in other long-term liabilities. These estimates are subject to uncertainty due to a variety of factors, including extended lag times in the reporting and resolution of claims, and trends or changes in claim settlement patterns, insurance industry practices and legal interpretations. As a result, actual costs could differ significantly from the estimated amounts. Adjustments to estimated liabilities are recorded in the period in which the change in estimate occurs. Financial Instruments —Our financial assets and liabilities consist of cash, accounts receivable, accounts payable and indebtedness. The fair values of these instruments approximate their carrying amounts at each reporting date. Nonrecurring fair value measurements include asset retirement obligations, the estimated fair value of which is calculated as the present value of estimated cash flows related to its reclamation liabilities using Level 3 inputs. The significant inputs used to calculate such liabilities include estimates of costs to be incurred, our credit adjusted discount rate, inflation rates and estimated date of reclamation. Concentrations— During the three months ended March 31, 2021, sales to two customers accounted for approximately 35% and 31% of our total revenue, respectively, aggregating to approximately 66% of our total revenue. The balance due from these two customers at March 31, 2021 was approximately 65% of total accounts receivable. During the three months ended March 31, 2020, sales to three customers accounted for approximately 73% of total revenue. Recent Accounting Pronouncements — In December 2019, the FASB issued ASU 2019-12, Income Taxes , which enhances and simplifies various aspects of the income tax accounting guidance, including requirements such as tax basis step-up in goodwill obtained in a transaction that is not a business combination, ownership changes in investments, and interim-period accounting for enacted changes in tax law. The standard was effective for us in the first quarter of our fiscal year 2021. The adoption of this ASU did not have a material impact on our consolidated financial statements. In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting , which provides optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments are effective for all entities beginning on March 12, 2020 through December 31, 2022. The Company may elect to apply the amendments prospectively through December 31, 2022. The Company has not adopted this ASU. The Company is currently assessing the impact of adopting this standard on its financial statements and the timing of adoption. |
Note 3 - Property, Plant and Eq
Note 3 - Property, Plant and Equipment | 3 Months Ended |
Mar. 31, 2021 | |
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, 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 Capitalized amounts related to coal reserves at properties where we are not currently developing or actively engaged in mining operations totaled $14.3 million as of March 31, 2021 and $15.4 million as of December 31, 2020. Depreciation and amortization included: Three months ended March 31, (In thousands) 2021 2020 Depreciation of plant and equipment $ 4,399 $ 4,175 Amortization of capitalized mine development costs 1,756 827 Total depreciation and amortization $ 6,155 $ 5,002 |
Note 4 - Debt
Note 4 - Debt | 3 Months Ended |
Mar. 31, 2021 | |
Notes to Financial Statements | |
DEBT | NOTE 4—DEBT Revolving Credit Facility and Term Loan— On November 2, 2018, we entered into a Credit and Security Agreement (as amended, the “Credit Agreement”) with KeyBank National Association (“KeyBank”). The Credit Agreement was amended on February 20, 2020 and March 19, 2021 and consists of a $10.0 million term loan (the “Term Loan”) and up to $30.0 million in the form of a revolving line of credit (the “Revolving Credit Facility”), including $3.0 million letter of credit availability. All personal property assets, including, but not limited to accounts receivable, coal inventory and certain mining equipment are pledged to secure the Credit Agreement. The Revolving Credit Facility has a maturity date of December 31, 2023 and bears interest based on LIBOR + 2.0% or Base Rate + 1.5%. Base Rate is the highest of (i) KeyBank’s prime rate, (ii) Federal Funds Effective Rate + 0.5%, or (iii) LIBOR + 2.0%. Advances under the Revolving Credit Facility are made initially as base rate loans, but may be converted to LIBOR rate loans at certain times at our discretion. At March 31, 2021, $11.6 million was outstanding under the Revolving Credit Facility and we had remaining availability of $13.6 million. The Term Loan is secured under a Master Security Agreement with a pledge of certain underground and surface mining equipment, bears interest at LIBOR + 5.15% and is required to be repaid in monthly installments of $278 thousand including accrued interest. The outstanding principal balance of the Term Loan was $5.9 million at March 31, 2021. The Credit Agreement contains usual and customary covenants including limitations on liens, additional indebtedness, investments, restricted payments, asset sales, mergers, affiliate transactions and other customary limitations, as well as financial covenants. At March 31, 2021, we were in compliance with all debt covenants in the Credit Agreement. Equipment Financing Loan — On April 16, 2020, we entered into an equipment loan with Key Equipment Finance, a division of KeyBank, as lender, in the principal amount of approximately $4.7 million for the financing of existing underground and surface equipment (the “ Equipment Financing Loan”) . The loan bears interest at 7.45% per annum and is payable in 36 monthly installments of $147 thousand. There is a 3% premium for prepayment of the loan within the first 12 months. This premium declines by 1% during each successive 12-month period. The outstanding principal balance under the Equipment Financing Loan was $3.4 million at March 31, 2021. |
Note 5 - SBA Paycheck Protectio
Note 5 - SBA Paycheck Protection Program Loan | 3 Months Ended |
Mar. 31, 2021 | |
SBA Paycheck Protection Program Loan | |
SBA Paycheck Protection Program Loan | NOTE 5— On April 20, 2020, we received proceeds from the PPP Loan in the amount of approximately $8.4 million from KeyBank, as lender, pursuant to the Paycheck Protection Program (“PPP”) of the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”). The purpose of the PPP was to encourage the continued employment of workers. We used all of the PPP Loan proceeds for eligible payroll expenses, lease, interest and utility payments. The PPP Loan is evidenced by a promissory note dated April 16, 2020, which contains customary events of default relating to, among other things, payment defaults and breaches of representations and warranties. The PPP Loan may be prepaid by the Company at any time prior to maturity with no prepayment penalties. The PPP Loan matures on April 16, 2022 and bears interest at a rate of 1% per annum. Pursuant to the subsequently enacted Paycheck Protection Flexibility Act of 2020 , we are permitted to defer required monthly payments of principal and interest until such time as an approval or denial of forgiveness is received from the U.S. Small Business Administration (“SBA”). Our application for forgiveness was approved by KeyBank and is currently being reviewed by the SBA. We expect the full amount of the PPP Loan principal, together with accrued interest thereon, will be forgiven. Accordingly, we recognized $8.4 million as other income in the consolidated statement of operations for 2020. |
Note 6 - Equity
Note 6 - Equity | 3 Months Ended |
Mar. 31, 2021 | |
Notes To Financial Statements [Abstract] | |
EQUITY | NOTE 6—EQUITY Stock-Based Compensation— We have a stock-based compensation plan under which stock options, restricted stock, performance shares and other stock-based awards may be granted. At March 31, 2021, 1.7 million shares were reserved under the current plan for future awards. Options for the purchase of a total of 937,424 shares of our common stock with an exercise price of $5.34 per share were granted to two executives on August 31, 2016. The options have a ten-year term from the grant date and are fully vested. The options remain outstanding and unexercised and were not in-the-money at March 31, 2021. We grant shares of restricted stock to certain senior executives, key employees and directors. These shares vest over approximately one to three and a half years from the date of grant. During the vesting period, the participants have voting rights and may receive dividends, but the shares may not be sold, assigned, transferred, pledged or otherwise encumbered. Additionally, granted but unvested shares are generally forfeited upon termination of employment, unless an employee enters into another written arrangement. The fair value of the restricted stock on the date of the grant is amortized ratably over the service period. Compensation expense related to these awards totaled $1.1 million for the three months ended March 31, 2021. At March 31, 2021, there was $11.6 million of total unrecognized compensation cost related to unvested restricted stock to be recognized over a weighted-average period of 2.3 years. The following table summarizes restricted awards outstanding, as well as activity for the period: 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 |
Note 7 - Commitments and Contin
Note 7 - Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2021 | |
Notes To Financial Statements [Abstract] | |
COMMITMENTS AND CONTINGENCIES. | NOTE 7—COMMITMENTS AND CONTINGENCIES Surety Bonds— At March 31, 2021, we had total reclamation bonding requirements of $15.4 million which were supported by surety bonds. Additionally, we had $0.3 million of surety bonds that secured performance obligations. Contingent Transportation Purchase Commitments— We secure the ability to transport coal through rail contracts and export terminal services contracts that are sometimes funded through take-or-pay arrangements. At March 31, 2021, contingent liabilities under these take-or-pay arrangements totaled $7.0 million under two contracts expiring December 31, 2021 and February 29, 2024. The level of these take-or-pay liabilities will be reduced at a per ton rate as such rail and export terminal services are utilized against the required minimum tonnage amounts over the contracts term stipulated in such rail and export terminal contracts. Litigation— From time to time, the Company may be subject to various litigation and other claims in the normal course of business. No amounts have been accrued in the consolidated financial statements with respect to any matters. On November 5, 2018, one of 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 the 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 required 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. Currently, the case is scheduled for trial beginning June 29, 2021, in Charleston, West Virginia. |
Note 8 - Revenues
Note 8 - Revenues | 3 Months Ended |
Mar. 31, 2021 | |
Notes to Financial Statements | |
REVENUES. | NOTE 8—REVENUE Our revenue is derived from contracts for the sale of coal which is recognized 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 either be by fixed-price or a price 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) 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 At March 31, 2021 , we had outstanding performance obligations for the remainder of 2021 of approximately 1.2 million tons for contracts with fixed sales prices averaging $87/ton and 0.3 million tons for contracts with index-based pricing mechanisms. |
Note 9- Income Taxes
Note 9- Income Taxes | 3 Months Ended |
Mar. 31, 2021 | |
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. During the three months ended March 31, 2021, we recognized a tax benefit of $0.4 million for legislative changes in the state of West Virginia. The effective tax rate for the three months ended March 31, 2021, excluding this discrete benefit, was approximately 5%. Our effective tax rate for the three months ended March 31, 2020 was also 5%. The primary difference from the federal statutory rate of 21% in each period is related to state taxes, permanent differences for non-deductible expenses and depletion expense for income tax purposes. |
Note 10 - Earnings Per Share
Note 10 - Earnings Per Share | 3 Months Ended |
Mar. 31, 2021 | |
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) 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 Diluted EPS in each of the three months ended March 31, 2021 excludes 937,424 options to purchase our common stock because their effect would be anti-dilutive. |
Note 11 - Related Party Transac
Note 11 - Related Party Transactions | 3 Months Ended |
Mar. 31, 2021 | |
Notes to Financial Statements | |
RELATED PARTY TRANSACTIONS | NOTE 11—RELATED PARTY TRANSACTIONS Mineral Lease and Surface Rights Agreements — Much of the coal reserves and surface rights that we control were acquired through a series of mineral leases and surface rights agreements with Ramaco Coal, LLC, a related party. Production royalty payables totaling $0.5 million and $0.4 million at March 31, 2021 and December 31, 2020, respectively, were included in accounts payable in the consolidated balance sheets. Royalties paid to Ramaco Coal, LLC in the three months ended March 31, 2021 totaled $1.1 million. In the three months ended March 31, 2020, royalties paid to Ramaco Coal, LLC totaled $1.2 million. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation —These interim financial statements are unaudited and have been prepared pursuant to the rules and regulations of the SEC regarding interim financial reporting. Certain disclosures have been condensed or omitted from these financial statements. Accordingly, they do not include all the information and notes required by accounting principles generally accepted in the United States of America (“GAAP”) for complete consolidated financial statements, and should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report. In the opinion of management, the accompanying unaudited condensed consolidated financial statements include all adjustments, consisting of normal recurring adjustments, necessary to fairly present the financial position as of, and the results of operations 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. |
Cash and cash equivalents | Cash and Cash Equivalents —We classify all highly-liquid instruments with an original maturity of three months or less to be cash equivalents. Restricted cash balances were $1.0 million at March 31, 2021 and $1.4 million at December 31, 2020. These consisted of funds held in escrow for potential future workers’ compensation claims and were classified in other current assets in the consolidated balance sheets. |
Self-Insurance | Self-Insurance —We are self-insured for certain losses relating to workers’ compensation claims. We purchase insurance coverage to reduce our exposure to significant levels of these claims. Self-insured losses are accrued based upon estimates of the aggregate liability for uninsured claims incurred as of the balance sheet date using current and historical claims experience and certain actuarial assumptions. At March 31, 2021, the estimated aggregate liability for uninsured claims totaled $1.2 million. Of this, $1.0 million is included in other long-term liabilities within the consolidated balance sheets. At December 31, 2020, the estimated aggregate liability for uninsured claims totaled $1.7 million including $0.9 million included in other long-term liabilities. These estimates are subject to uncertainty due to a variety of factors, including extended lag times in the reporting and resolution of claims, and trends or changes in claim settlement patterns, insurance industry practices and legal interpretations. As a result, actual costs could differ significantly from the estimated amounts. Adjustments to estimated liabilities are recorded in the period in which the change in estimate occurs. |
Financial Instruments | Financial Instruments —Our financial assets and liabilities consist of cash, accounts receivable, accounts payable and indebtedness. The fair values of these instruments approximate their carrying amounts at each reporting date. Nonrecurring fair value measurements include asset retirement obligations, the estimated fair value of which is calculated as the present value of estimated cash flows related to its reclamation liabilities using Level 3 inputs. The significant inputs used to calculate such liabilities include estimates of costs to be incurred, our credit adjusted discount rate, inflation rates and estimated date of reclamation. |
Concentrations | Concentrations— During the three months ended March 31, 2021, sales to two customers accounted for approximately 35% and 31% of our total revenue, respectively, aggregating to approximately 66% of our total revenue. The balance due from these two customers at March 31, 2021 was approximately 65% of total accounts receivable. During the three months ended March 31, 2020, sales to three customers accounted for approximately 73% of total revenue. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements — In December 2019, the FASB issued ASU 2019-12, Income Taxes , which enhances and simplifies various aspects of the income tax accounting guidance, including requirements such as tax basis step-up in goodwill obtained in a transaction that is not a business combination, ownership changes in investments, and interim-period accounting for enacted changes in tax law. The standard was effective for us in the first quarter of our fiscal year 2021. The adoption of this ASU did not have a material impact on our consolidated financial statements. In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting , which provides optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments are effective for all entities beginning on March 12, 2020 through December 31, 2022. The Company may elect to apply the amendments prospectively through December 31, 2022. The Company has not adopted this ASU. The Company is currently assessing the impact of adopting this standard on its financial statements and the timing of adoption. |
Note 3 - Property, Plant and _2
Note 3 - Property, Plant and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property, plant, and equipment | (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 |
Schedule of depreciation and amortization | Three months ended March 31, (In thousands) 2021 2020 Depreciation of plant and equipment $ 4,399 $ 4,175 Amortization of capitalized mine development costs 1,756 827 Total depreciation and amortization $ 6,155 $ 5,002 |
Note 6 - Equity (Tables)
Note 6 - Equity (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Stockholders' Equity | |
Schedule of restricted awards outstanding | 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 |
Note 8 - Revenues (Tables)
Note 8 - Revenues (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of disaggregation of revenue | 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 |
Note 10 - Earnings Per Share (T
Note 10 - Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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) 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 |
Note 2 - Summary of Significa_2
Note 2 - Summary of Significant Accounting Policies (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Restricted Cash | ||
Restricted Cash | $ 1 | $ 1.4 |
Restricted Cash, Asset, Statement of Financial Position [Extensible List] | us-gaap:OtherCurrentAssets | us-gaap:OtherCurrentAssets |
Note 2 - Summary of Significa_3
Note 2 - Summary of Significant Accounting Policies - Self-Insurance (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Self-Insurance | ||
Estimated aggregate liability for uninsured claims | $ 1.2 | $ 1.7 |
Estimated aggregate liability for uninsured claims included in other long-term liabilities | $ 1 | $ 0.9 |
Note 2 - Summary of Significa_4
Note 2 - Summary of Significant Accounting Policies - Concentrations (Details) - customer | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Revenue Benchmark | ||
Concentrations | ||
Number of Major Customers | 2 | 3 |
Accounts Receivable. | ||
Concentrations | ||
Number of Major Customers | 2 | |
Customer Concentration Risk | Revenue Benchmark | ||
Concentrations | ||
Concentration Risk, Percentage | 66.00% | |
Customer Concentration Risk | Revenue Benchmark | Customer A | ||
Concentrations | ||
Concentration Risk, Percentage | 35.00% | |
Customer Concentration Risk | Revenue Benchmark | Customer B | ||
Concentrations | ||
Concentration Risk, Percentage | 31.00% | |
Customer Concentration Risk | Accounts Receivable. | ||
Concentrations | ||
Concentration Risk, Percentage | 65.00% | 73.00% |
Note 3 - Property, Plant and _3
Note 3 - Property, Plant and Equipment - Schedule of Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Property, plant, and equipment | ||
Less: Accumulated depreciation and amortization | $ (62,397) | $ (56,242) |
Total property, plant and equipment, net | 177,736 | 180,455 |
Plant and Equipment | ||
Property, plant, and equipment | ||
Property, plant and equipment, gross | 157,424 | 155,173 |
Construction in Progress | ||
Property, plant, and equipment | ||
Property, plant and equipment, gross | 5,551 | 7,245 |
Capitalized mine development cost | ||
Property, plant, and equipment | ||
Property, plant and equipment, gross | 77,158 | 74,279 |
Coal Properties | ||
Property, plant, and equipment | ||
Capitalized amounts related to coal reserves at properties where the Company is not currently engaged in mining operations | $ 14,300 | $ 15,400 |
Note 3 - Property, Plant and _4
Note 3 - Property, Plant and Equipment - Depreciation and amortization (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation of plant and equipment | $ 4,399 | $ 4,175 |
Amortization of capitalized mine development costs | 1,756 | 827 |
Total depreciation and amortization | $ 6,155 | $ 5,002 |
Note 4 - Debt (Details)
Note 4 - Debt (Details) - USD ($) $ in Millions | Apr. 16, 2020 | Nov. 02, 2018 | Mar. 31, 2021 |
Equipment Loan | |||
Debt | |||
Long-term Debt, Total | $ 3.4 | ||
KeyBank National Association | Revolving Credit Facility | |||
Debt | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 30 | ||
Amount of remaining availability | 13.6 | ||
Outstanding on Revolving Credit Facility | 11.6 | ||
KeyBank National Association | Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | |||
Debt | |||
Debt Instrument, Basis Spread on Variable Rate | 2.00% | ||
KeyBank National Association | Revolving Credit Facility | Base Rate | |||
Debt | |||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | ||
KeyBank National Association | Revolving Credit Facility | Fed Funds Effective Rate Overnight Index Swap Rate | |||
Debt | |||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | ||
KeyBank National Association | Letter of Credit | |||
Debt | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 3 | ||
KeyBank National Association | Term Loan | |||
Debt | |||
Debt Instrument, Face Amount | $ 10 | ||
Debt Instrument, Monthly Installment, Amount | 278 | ||
Long-term Debt, Total | $ 5.9 | ||
KeyBank National Association | Term Loan | London Interbank Offered Rate (LIBOR) | |||
Debt | |||
Debt Instrument, Basis Spread on Variable Rate | 5.15% | ||
KeyBank National Association | Equipment Loan | |||
Debt | |||
Debt Instrument, Face Amount | $ 4.7 | ||
Debt Instrument, Monthly Installment, Amount | $ 147 | ||
Number Of Monthly Installments | 36 months | ||
Annual percent of premium prepayment | 3.00% | ||
Annual premium decline in premium prepayment | 1.00% | ||
Debt Instrument, Interest Rate, Stated Percentage | 7.45% |
Note 5 - SBA Paycheck Protect_2
Note 5 - SBA Paycheck Protection Program (Details) - USD ($) $ in Thousands | Apr. 20, 2020 | Mar. 31, 2021 | Mar. 31, 2020 |
Other income | $ 2,935 | $ 1,210 | |
PPP Loan | |||
Proceeds from loan | $ 8,400 | ||
Other income | $ 8,400 |
Note 6 - Equity (Details)
Note 6 - Equity (Details) $ / shares in Units, $ in Millions | Aug. 31, 2016employee$ / sharesshares | Mar. 31, 2021USD ($)$ / sharesshares | Dec. 31, 2020$ / sharesshares |
EQUITY | |||
Granted (in shares) | 1,700,000 | ||
Common stock, shares authorized (in shares) | 260,000,000 | 260,000,000 | |
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | |
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 | |
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | |
Minimum | Executives and Employees | |||
EQUITY | |||
Vesting period | 1 year | ||
Maximum | Executives and Employees | |||
EQUITY | |||
Vesting period | 3 years 6 months | ||
Restricted Stock | |||
EQUITY | |||
Compensation costs | $ | $ 1.1 | ||
Unrecognized compensation cost | $ | $ 11.6 | ||
Weighted-average period | 2 years 3 months 18 days | ||
Stock Options | |||
EQUITY | |||
Granted (in shares) | 937,424 | ||
Number of individuals | employee | 2 | ||
Purchase price (per share) | $ / shares | $ 5.34 | ||
Expiration period | 10 years |
Note 6 - Equity - Summary of Re
Note 6 - Equity - Summary of Restricted Awards Activity (Details) - Restricted Stock | 3 Months Ended |
Mar. 31, 2021$ / sharesshares | |
Outstanding, shares (in shares) | shares | 2,845,525 |
Outstanding, Weighted average grant date fair value (in dollars per share) | $ / shares | $ 4.28 |
Granted, shares (in shares) | shares | 1,592,659 |
Granted, Weighted average grant date fair value (in dollars per share) | $ / shares | $ 4.37 |
Forfeited, shares (in shares) | shares | (69,606) |
Forfeited, Weighted average grant date fair value (in dollars per share) | $ / shares | $ 4.20 |
Outstanding, shares (in shares) | shares | 4,368,578 |
Outstanding, Weighted average grant date fair value (in dollars per share) | $ / shares | $ 4.32 |
Note 7 - Commitments and Cont_2
Note 7 - Commitments and Contingencies (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2021USD ($)contract | |
COMMITMENTS AND CONTINGENCIES | |
Asset Retirement Obligation | $ 15.4 |
Reclamation bonding requirements | $ 0.3 |
Number of contracts | contract | 2 |
Take-or-pay Purchase Commitments | |
COMMITMENTS AND CONTINGENCIES | |
Commitments | $ 7 |
Note 8 - Revenue - Domestic Rev
Note 8 - Revenue - Domestic Revenues an Export Revenues (Details) $ in Thousands, T in Millions | 3 Months Ended | |
Mar. 31, 2021USD ($)T$ / T | Mar. 31, 2020USD ($) | |
REVENUES | ||
Revenues | $ 43,455 | $ 41,935 |
Term of domestic sales contracts | 1 year | |
Domestic Coal Revenues | ||
REVENUES | ||
Revenues | $ 20,107 | 30,532 |
Export Revenues | ||
REVENUES | ||
Revenues | $ 23,348 | $ 11,403 |
Fixed Priced Contracts | ||
REVENUES | ||
Outstanding performance obligation, mass | T | 1.2 | |
Average per ton | $ / T | 87 | |
Contracts with Indexed Based Pricing Mechanisms | ||
REVENUES | ||
Outstanding performance obligation, mass | T | 0.3 |
Note 9 - Income Taxes (Details)
Note 9 - Income Taxes (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Income Taxes. | |
Amount of tax benefit for legislative changes | $ 0.4 |
Percentage of discrete benefit | 5.00% |
Effective Income Tax Rate Reconciliation, Percent, Total | 5.00% |
Statutory rate | 21.00% |
Note 10 - Earnings Per Share -
Note 10 - Earnings Per Share - Computation of Basic and Diluted Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
EARNINGS PER SHARE | ||
Net income | $ 4,143 | $ 1,962 |
Weighted average shares used to compute basic EPS (in shares) | 43,443 | 41,760 |
Weighted average shares used to compute diluted EPS (in shares) | 43,443 | 41,760 |
Basic (in dollars per share) | $ 0.10 | $ 0.05 |
Diluted (in dollars per share) | $ 0.10 | $ 0.05 |
Antidilutive shares | 937,424 |
Note 11 - Related Party Trans_2
Note 11 - Related Party Transactions (Details) - Ramaco Coal, LLC - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Royalties paid | $ 1.1 | $ 1.2 | |
Accounts Payable and Accrued Liabilities | Mineral Lease and Surface Rights Agreements | |||
Due to Related Parties, Total | $ 0.5 | $ 0.4 |