Last10K.com

Hallador Energy Co (HNRG) SEC Filing 8-K Material Event for the period ending Monday, November 8, 2021

Hallador Energy Co

CIK: 788965 Ticker: HNRG

 EXHIBIT 99.1

 

 

 

Hallador Energy Company Reports Third Quarter 2021 Financial and Operating Results

 

 

TERRE HAUTE, Ind., November 8, 2021 -- Hallador Energy Company (NASDAQ – HNRG) today reported net income of $8.0 million, $.26 per share, adjusted EBITDA of $20.5 million. 

 

Brent Bilsland, President and Chief Executive Officer, stated, "An extremely strong coal market is creating opportunities for Hallador to ramp up to full production and increase our average selling price for the next few years.  We will experience approximately $3 per ton price increase next quarter alone.  Additionally, record shipments during the quarter led us to pay down a healthy $15.2 million of bank debt."

 

Below are highlights for the quarter and first nine months of 2021:

 

 

 

On shipments of 2.04 million tons, Hallador generated $14.6 million in Adjusted Free Cash Flow and paid down $15.2 million of bank debt during Q3.

 

 

As of September 30, 2021, bank debt was reduced to $114.9 million.

 

  Liquidity increased to $41.7 million.

 

 

Our $10 million PPP Loan was forgiven in its entirety during July.

 

  The forgiveness of the PPP loan was recognized in the quarter.

 

 

Average price decreased 5% and production costs increased 13% year over year.

 

  Prices are expected to increase by ~$3 per ton in Q4 and production cost pressures are expected to dissipate throughout 2022.

 

  Solid Sales Position Through 2023

 

 

We expect to add tons later in the year for 2023 and beyond as the market is currently very short of coal supply.

 

   

Contracted

   

Estimated

 
   

Tons

   

Priced

 

Year

 

(millions)*

   

per ton

 

2021 (Q4)

    1.6     $ 41.40  

2022

    6.8     $ 39.50  

2023

    3.8     $ 41.30  
      12.2          

 

*Shipments are subject to adjustment within certain coal contracts due to the exercise of customer options to either take additional tons or fewer tons if such options exist in the customer contract.

 

The table below represents some of our critical metrics (in thousands except for per ton data):

 

   

Three Months Ended

   

Nine Months Ended

 
   

September 30,

   

September 30,

 
   

2021

   

2020

   

2021

   

2020

 

Net Income (loss)

  $ 7,986     $ 1,923     $ 3,990     $ (1,483 )

Total Revenues

  $ 79,822     $ 65,247     $ 182,155     $ 178,580  

Tons Sold

    2,042       1,585       4,619       4,355  

Average Price per Ton

  $ 38.71     $ 40.85     $ 38.86     $ 40.68  

Bank Debt

  $ 114,925     $ 146,925     $ 114,925     $ 146,925  

Operating Cash Flow

  $ 24,143     $ 16,935     $ 37,031     $ 34,109  

Adjusted EBITDA*

  $ 20,516     $ 17,077     $ 43,234     $ 44,151  

Adjusted Free Cash Flow **

  $ 14,642     $ 11,557     $ 26,440     $ 24,651  


*Defined as EBITDA plus stock-based compensation and ARO accretion, less the effects of our equity method investments and Hourglass Sands.

**Defined as net income plus deferred income taxes, DD&A, ARO accretion, and stock compensation, less maintenance capex and the effects of our equity method investments. 

 

 

EBITDA, adjusted EBITDA, and adjusted free cash flow should not be considered alternatives to net income, income from operations, cash flows from operating activities or any other measure of financial performance presented in accordance with GAAP.  Our method of computing EBITDA, adjusted EBITDA, and adjusted free cash flow may not be the same method used to compute similar measures reported by other companies.

 

Management believes that the presentation of such additional financial measures provides useful information to investors regarding our performance and results of operations because these measures, when used in conjunction with related GAAP financial measures, (i) provide additional information about our core operating performance and ability to generate and distribute cash flow, (ii) provide investors with the financial and analytical framework upon which management bases financial, operation, compensation, and planning decisions, and (iii) present measurements that investors, rating agencies, and debt holders have indicated are useful in assessing our results.

 

 

 

Reconciliation of GAAP "net income" to non-GAAP "adjusted EBITDA" (in thousands).

 

   

Three Months Ended

   

Nine Months Ended

 
   

September 30,

   

September 30,

 
   

2021

   

2020

   

2021

   

2020

 

Net income (loss)

  $ 7,986     $ 1,923     $ 3,990     $ (1,483 )

Income tax benefit

    (1,359 )     (461 )     (2,691 )     (3,255 )

Loss from Hourglass Sands

    5       64       109       205  

Loss (income) from equity method investments

    (90 )     119       (153 )     (1,167 )

Depreciation, depletion and amortization

    9,842       9,313       29,864       30,151  

Asset impairment

          1,799             1,799  

Asset retirement obligations accretion

    380       348       1,116       1,024  

Loss on disposal of assets

          38             38  

Gain on marketable securities

                      (14 )

Interest expense

    2,108       2,329       6,188       10,877  

Other amortization

    1,378       1,452       4,357       4,274  

Change in fair value of fuel hedges

    (1 )     (138 )     (380 )     775  

Stock-based compensation

    267       291       834       927  

Adjusted EBITDA

  $ 20,516     $ 17,077     $ 43,234     $ 44,151  

 

 

Reconciliation of GAAP "net income" to non-GAAP "adjusted free cash flow" (in thousands).

 

   

Three Months Ended

   

Nine Months Ended

 
   

September 30,

   

September 30,

 
   

2021

   

2020

   

2021

   

2020

 

Net income (loss)

  $ 7,986     $ 1,923     $ 3,990     $ (1,483 )

Loss (income) from equity method investments

    (90 )     119       (153 )     (1,167 )

Deferred income tax benefit

    (1,359 )     (387 )     (2,691 )     (2,657 )

Depreciation, depletion and amortization

    9,842       9,315       29,864       30,159  

Asset impairment

          1,799             1,799  

Asset retirement obligations accretion

    380       348       1,116       1,024  

Deferred financing costs amortization

    657       610       1,908       1,686  

Change in fair value of interest rate swaps

    (716 )     (995 )     (2,330 )     981  

Change in fair value of fuel hedges

    (1 )     (138 )     (380 )     775  

Loss on disposal of assets

          38             38  

Maintenance capex

    (2,324 )     (1,365 )     (5,716 )     (7,413 )

Stock-based compensation less taxes paid

    267       290       832       909  

Adjusted Free Cash Flow

  $ 14,642     $ 11,557     $ 26,440     $ 24,651  

 

 

 

Conference Call

 

As previously announced our earnings conference call for financial analysts and investors will be held on Tuesday, November 9, 2021 at 2:00 pm eastern time.  Dial-in numbers for the live conference call are as follows:  Toll-free (888) 347-5317; Canadian Callers Toll-free (855) 669-9657; Conference ID #: Hallador Energy Company HNRG Call.

 

An audio replay of the conference call will be available for one week. To access the audio replay, dial US Toll-Free (877) 344-7529; Canada Toll-Free (855) 669-9658 and request to be connected to replay access code 10159876.

 

Hallador is headquartered in Terre Haute, Indiana and through its wholly owned subsidiary, Sunrise Coal, LLC, produces coal in the Illinois Basin for the electric power generation industry. To learn more about Hallador or Sunrise, visit our website at www.halladorenergy.com.

 

Contact: 

Investor Relations

Phone:  

(303) 839-5504

 

 

View differences made from one to another to evaluate Hallador Energy Co's financial trajectory

Compare SEC Filings Year-over-Year (YoY) and Quarter-over-Quarter (QoQ)
Sample 10-K Year-over-Year (YoY) Comparison

Compare this 8-K Corporate News to its predecessor by reading our highlights to see what text and tables were  removed  ,   added    and   changed   by Hallador Energy Co.

Continue

Assess how Hallador Energy Co's management team is paid from their Annual Proxy

Definitive Proxy Statement (Form DEF 14A)
Screenshot example of actual Proxy Statement

Hallador Energy Co's Definitive Proxy Statement (Form DEF 14A) filed after their 2021 10-K Annual Report includes:

  • Voting Procedures
  • Board Members
  • Executive Team
  • Salaries, Bonuses, Perks
  • Peers / Competitors

Continue

SEC Filing Tools

Financial Statements, Disclosures and Schedules

Inside this 8-K Corporate News

Material Contracts, Statements, Certifications & more

Hallador Energy Co provided additional information to their SEC Filing as exhibits

Ticker: HNRG
CIK: 788965
Form Type: 8-K Corporate News
Accession Number: 0001437749-21-025735
Submitted to the SEC: Mon Nov 08 2021 6:29:53 PM EST
Accepted by the SEC: Tue Nov 09 2021
Period: Monday, November 8, 2021
Industry: Bituminous Coal And Lignite Mining
Events:
  1. Earnings Release
  2. Financial Exhibit

External Resources:
Stock Quote
Social Media

Bookmark the Permalink:
https://last10k.com/sec-filings/hnrg/0001437749-21-025735.htm