Hallador Energy Company Reports Second Quarter 2021 Financial and Operating Results
August 09 2021 - 5:53PM
Hallador Energy Company (NASDAQ – HNRG) today reported net
loss of $3.0 million, ($.10) per share, adjusted
EBITDA of $11.3 million.
Brent Bilsland, President and Chief Executive
Officer, stated, "We are experiencing one of the strongest and most
dramatic market turn arounds we have seen in years. As a
result, we have added an additional 500,000 tons of contracted
sales during the quarter and expect to ship ~1 million more tons in
the last half of 2021 versus the first half, representing a 40%
increase in shipments."
Below are highlights for the quarter and first six months
of 2021:
- Additional contracted sales of 500,000 tons added
during the quarter.
- Q2 2021, shipments improved to
a 5.6 million-ton annualized pace from a 4.7 million-ton annualized
pace in Q1 2021. We expect shipments in the last
half of 2021 to run at an ~7.0 million-ton annualized pace.
- Hallador generated $6.4 million in Adjusted Free
Cash Flow during the quarter.
- As of June 30, 2021, our bank debt
was $130.1 million, bringing our liquidity to $26.5 million
resulting in a leverage ratio of 2.76X, well within our covenant of
3.25X.
- Our entire $10 million PPP
Loan was forgiven on July 23, 2021. The forgiveness of the
PPP Loan will be recognized during Q3 2021.
- Solid Sales Position Through 2022
- We added ~500,000 contracted tons to our position during the
quarter and expect to add tons later in the year for 2022 and
beyond as markets recover and gas prices continue to increase.
|
|
CONTRACTED |
|
ESTIMATED |
|
|
|
TONS |
|
PRICED |
|
YEAR |
|
(MILLIONS)* |
|
PER TON |
|
2021 (Q3- Q4) |
|
3.6 |
|
$ |
39.00 |
|
2022 |
|
5.1 |
|
$ |
39.25 |
|
|
|
8.7 |
|
|
|
|
|
|
|
|
|
____________* Contracted tons are subject to adjustment in
instances of force majeure and exercise of customer options to
either take additional tons or reduce tonnage if such option exists
in the customer contract. |
|
The table below represents some of our critical metrics (in
thousands except for per ton data):
|
Three Months Ended |
|
|
Six Months Ended |
|
|
June 30, |
|
|
June 30, |
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
Net Income (loss) |
$ |
(2,964 |
) |
|
$ |
254 |
|
|
$ |
(3,996 |
) |
|
$ |
(3,406 |
) |
Total Revenues |
$ |
55,638 |
|
|
$ |
50,850 |
|
|
$ |
102,333 |
|
|
$ |
113,333 |
|
Tons Sold |
|
1,403 |
|
|
|
1,244 |
|
|
|
2,577 |
|
|
|
2,770 |
|
Average Price per Ton |
$ |
38.92 |
|
|
$ |
40.57 |
|
|
$ |
38.99 |
|
|
$ |
40.58 |
|
Bank Debt |
$ |
130,113 |
|
|
$ |
161,113 |
|
|
$ |
130,113 |
|
|
$ |
161,113 |
|
Operating Cash Flow |
$ |
9,915 |
|
|
$ |
918 |
|
|
$ |
12,888 |
|
|
$ |
17,174 |
|
Adjusted EBITDA* |
$ |
11,299 |
|
|
$ |
13,175 |
|
|
$ |
22,718 |
|
|
$ |
27,074 |
|
Adjusted Free Cash Flow
** |
$ |
6,429 |
|
|
$ |
6,281 |
|
|
$ |
11,799 |
|
|
$ |
13,094 |
|
____________* 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 |
|
|
Six Months Ended |
|
|
June 30, |
|
|
June 30, |
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
Net income (loss) |
$ |
(2,964 |
) |
|
$ |
254 |
|
|
$ |
(3,996 |
) |
|
$ |
(3,406 |
) |
Income tax expense
(benefit) |
|
397 |
|
|
|
(618 |
) |
|
|
(1,332 |
) |
|
|
(2,794 |
) |
Loss from Hourglass Sands |
|
24 |
|
|
|
63 |
|
|
|
104 |
|
|
|
141 |
|
Income from equity method
investments |
|
(63 |
) |
|
|
(1,231 |
) |
|
|
(63 |
) |
|
|
(1,286 |
) |
Depreciation, depletion and
amortization |
|
9,715 |
|
|
|
10,215 |
|
|
|
20,022 |
|
|
|
20,838 |
|
Asset retirement obligations
accretion |
|
373 |
|
|
|
343 |
|
|
|
736 |
|
|
|
676 |
|
Gain on marketable
securities |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(14 |
) |
Interest expense |
|
2,182 |
|
|
|
2,834 |
|
|
|
4,080 |
|
|
|
8,548 |
|
Other amortization |
|
1,490 |
|
|
|
1,396 |
|
|
|
2,979 |
|
|
|
2,822 |
|
Change in fair value of fuel
hedges |
|
(140 |
) |
|
|
(398 |
) |
|
|
(379 |
) |
|
|
913 |
|
Stock-based compensation |
|
285 |
|
|
|
317 |
|
|
|
567 |
|
|
|
636 |
|
Adjusted
EBITDA |
$ |
11,299 |
|
|
$ |
13,175 |
|
|
$ |
22,718 |
|
|
$ |
27,074 |
|
Reconciliation of GAAP "net income" to non-GAAP
"adjusted free cash flow" (in thousands).
|
Three Months Ended |
|
|
Six Months Ended |
|
|
June 30, |
|
|
June 30, |
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
Net income (loss) |
$ |
(2,964 |
) |
|
$ |
254 |
|
|
$ |
(3,996 |
) |
|
$ |
(3,406 |
) |
Income from equity method
investments |
|
(63 |
) |
|
|
(1,231 |
) |
|
|
(63 |
) |
|
|
(1,286 |
) |
Deferred income tax expense
(benefit) |
|
397 |
|
|
|
(618 |
) |
|
|
(1,332 |
) |
|
|
(2,270 |
) |
Depreciation, depletion and
amortization |
|
9,715 |
|
|
|
10,217 |
|
|
|
20,022 |
|
|
|
20,844 |
|
Asset retirement obligations
accretion |
|
373 |
|
|
|
343 |
|
|
|
736 |
|
|
|
676 |
|
Deferred financing costs
amortization |
|
641 |
|
|
|
609 |
|
|
|
1,252 |
|
|
|
1,076 |
|
Change in fair value of
interest rate swaps |
|
(766 |
) |
|
|
(617 |
) |
|
|
(1,614 |
) |
|
|
1,976 |
|
Change in fair value of fuel
hedges |
|
(140 |
) |
|
|
(398 |
) |
|
|
(379 |
) |
|
|
913 |
|
Maintenance capex |
|
(1,049 |
) |
|
|
(2,578 |
) |
|
|
(3,392 |
) |
|
|
(6,048 |
) |
Stock-based compensation less
taxes paid |
|
285 |
|
|
|
300 |
|
|
|
565 |
|
|
|
619 |
|
Adjusted Free Cash
Flow |
$ |
6,429 |
|
|
$ |
6,281 |
|
|
$ |
11,799 |
|
|
$ |
13,094 |
|
Conference Call
As previously announced our earnings conference
call for financial analysts and investors will be held on Tuesday,
August 10, 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
10158706.
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 |
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