Warrior Met Coal, Inc. (NYSE:HCC) Q2 2022 Earnings Conference Call August 3, 2022 4:30 PM ET

Company Participants

Walter Scheller - CEO & Director

Dale Boyles - CFO

Conference Call Participants

David Gagliano - BMO Capital Markets

Lucas Pipes - B. Riley Securities

Nathan Martin - The Benchmark Company

Ken Kamon - Pacific Rim Investments

Operator

Good afternoon. My name is Matt, and I will be your conference operator for today. At this time, I would like to welcome everyone to the Warrior Met Coal Second Quarter 2022 Financial Results Conference Call. [Operator Instructions].

Before we begin, I have been asked to note that today's discussion may contain forward-looking statements, and actual results may differ materially from those discussed. For more information regarding forward-looking statements, please refer to the company's press release and SEC filings.

I have also been asked to note that the company has posted reconciliations of the non-GAAP financial measures discussed during this call in the tables accompanying the company's earnings press release located on the Investors section of the company's website at www.warriormetcoal.com. In addition to the earnings release, the company has posted a brief supplemental slide presentation to the Investors section at its website at www.warriormetcoal.com.

Here today to discuss the company's results are Mr. Walt Scheller, Chief Executive Officer; and Mr. Dale Boyles, Chief Financial Officer. Mr. Scheller, you may begin your remarks.

Walter Scheller

Thanks, operator. Hello, everyone, and thank you for taking the time to join us today to discuss our second quarter 2022 results. After my remarks, Dale will review our results in additional detail, and then you'll have the opportunity to ask questions.

I'm excited to share the results from yet another very strong quarter. It represented our third consecutive quarter of record net income and earnings per share since the start of the COVID-19 pandemic. We again demonstrated our ability to leverage our efficient business model to meet strong customer demand for our premium met coal and taking advantage of strong met coal pricing to deliver these results. In addition to net income and earnings per share, this resulted in record high amounts of revenue, adjusted EBITDA, cash flow from operations, free cash flow and liquidity.

We were clearly the beneficiary of macroeconomic conditions driving higher pricing and strong customer demand, and we are pleased with how well positioned the company is to be able to take advantage of these tailwinds. But is the strength, efficiency and nimbleness of our business model that are the key differentiators for us in good times and bad. We were able to see those strengths in action this past quarter in response to both industry and non-industry-related issues. For example, we felt the impact of the significant inflationary environment on our cost of sales, which Dale will speak to later.