hnrg20200803_press.htm
false
0000788965
0000788965
2021-03-09
2021-03-09
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): March 9, 2021 (March 9, 2021)
Hallador Energy Company
(Exact name of registrant as specified in its charter)
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Colorado
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001-34743
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84-1014610
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(State or other jurisdiction
of incorporation)
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(Commission
File Number)
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(IRS Employer
Identification No.)
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1183 East Canvasback Drive, Terre Haute, Indiana 47802
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(Address, including zip code, of principal executive offices)
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Registrant’s telephone number, including area code: (812) 299-2800
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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☐
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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☐
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Securities registered pursuant to Section 12(b) of the Act:
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Title of each class
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Trading Symbol
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Name of each exchange
on which registered
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Common Shares, $.01 par value
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HNRG
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Nasdaq
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
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. ☐
Item 2.02 - Results of Operations and Financial Condition
On March 9, 2021, Hallador Energy Company reported its full-year 2020 results on Form 10-K and issued a press release announcing such results. A copy of the press release is attached hereto as Exhibit 99.1.
Item 9.01 – Financial Statements and Exhibits
(d) Exhibits
104 – Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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March 9, 2021
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By:
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/s/LAWRENCE D. MARTIN
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Lawrence D. Martin
CFO
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EXHIBIT 99.1
Hallador Energy Company Reports Full-Year 2020 Financial and Operating Results
TERRE HAUTE, Ind., March 9, 2021 -- Hallador Energy Company (NASDAQ – HNRG) today reported net loss of $6.2 million, ($.20) Per Share, Bank Debt reduced by 24%, $42.4 million, in 2020.
Brent Bilsland, President and Chief Executive Officer, stated, "I am proud that our company created $52.6 million of positive cash flow, paid down 24% of our bank debt and successfully extended customer contracts all during a global pandemic which dramatically reduced energy consumption.”
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We generated $52.6 million in operating cash flow during the year which we utilized to pay down our bank debt by $42.4 million.
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As of December 31, 2020, our bank debt was $137.7 million, bringing our liquidity to $51.8 million and our leverage ratio to 2.68X, within our covenant of 3.5X. |
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Shipments totaled 6.0 million tons.
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Extended customer contracts with multiple customers. |
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2020 production costs were $31.07/ton which were slightly higher than 2019 costs of $30.69/ton, despite at times having 25% of our workforce quarantined due to possible COVID-19 exposure.
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○
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Oaktown costs over that same period were $29.84 and $28.35.
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Solid Sales Position Through 2022
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We expect to add to our strong forward contracted sales position as the markets recover later this year.
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Contracted
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Estimated
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Tons
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Priced
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Year
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(millions)*
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per ton
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2021
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5.1
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$39.40
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2022
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5.1
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$39.25
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10.2
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* Contracted tons are subject to adjustment in instances of force majeure and exercise of customer options to either take additional tons or reduce tonnage if such option exists in the customer contract.
The table below represents some of our critical metrics (in thousands except for per ton data):
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December 31,
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2020
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2019
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Net loss
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$(6,220 |
) |
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$(59,854 |
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Total revenues
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$245,295 |
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$323,462 |
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Tons sold
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5,968 |
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8,070 |
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Average price per ton
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$40.56 |
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$39.34 |
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Bank debt
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$137,738 |
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$180,150 |
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Operating cash flow
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$52,576 |
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$38,243 |
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Adjusted EBITDA*
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$53,501 |
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$68,761 |
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Adjusted Free Cash Flow **
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$27,595 |
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$29,755 |
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*Defined as EBITDA plus stock-based compensation and ARO accretion, less the effects of our equity method investments and Hourglass Sands.
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**Defined as net income plus deferred income taxes, DD&A, ARO accretion, and stock compensation, less maintenance capex and the effects of our equity method investments.
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EBITDA, adjusted EBITDA, and adjusted free cash flow should not be considered alternatives to net income, income from operations, cash flows from operating activities or any other measure of financial performance presented in accordance with GAAP. Our method of computing EBITDA, adjusted EBITDA, and adjusted free cash flow may not be the same method used to compute similar measures reported by other companies.
Management believes that the presentation of such additional financial measures provides useful information to investors regarding our performance and results of operations because these measures, when used in conjunction with related GAAP financial measures, (i) provide additional information about our core operating performance and ability to generate and distribute cash flow, (ii) provide investors with the financial and analytical framework upon which management bases financial, operation, compensation, and planning decisions, and (iii) present measurements that investors, rating agencies, and debt holders have indicated are useful in assessing our results.
Reconciliation of GAAP "net income" to non-GAAP "adjusted EBITDA" (in thousands).
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December 31,
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2020
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2019
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Net loss
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$(6,220 |
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$(59,854 |
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Income tax benefit
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(2,658 |
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(22,347 |
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Loss from Hourglass Sands
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270 |
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540 |
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(Income) loss from equity method investments
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(1,054 |
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527 |
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DD&A
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39,636 |
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48,554 |
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Asset impairment
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1,799 |
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77,882 |
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ARO accretion
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1,381 |
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1,272 |
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Loss (gain) on disposal of assets
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38 |
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(90 |
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Unrealized gain on marketable securities
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(14 |
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(593 |
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Interest Expense
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13,030 |
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15,998 |
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Other amortization
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5,760 |
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5,039 |
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Change in fair value of fuel hedges
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322 |
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- |
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Stock-based compensation
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1,211 |
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1,833 |
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Adjusted EBITDA
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$53,501 |
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$68,761 |
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Reconciliation of GAAP "net income" to non-GAAP "adjusted free cash flow" (in thousands).
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December 31,
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2020
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2019
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Net loss
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$(6,220 |
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$(59,854 |
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(Income) loss from equity method investments
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(1,054 |
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527 |
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Deferred income tax benefit
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(2,060 |
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(21,822 |
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DD&A
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39,644 |
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48,572 |
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Asset impairment
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1,799 |
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77,882 |
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ARO accretion
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1,381 |
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1,272 |
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Deferred financing costs amortization
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2,296 |
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2,095 |
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Change in fair value of interest rate swaps
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68 |
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2,186 |
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Change in fair value of fuel hedges
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322 |
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- |
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Loss (gain) on disposal of assets
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38 |
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(90 |
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Maintenance capex
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(9,755 |
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(22,488 |
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Stock-based compensation less taxes paid
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1,136 |
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1,475 |
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Adjusted Free Cash Flow
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$27,595 |
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$29,755 |
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Conference Call
As previously announced our earnings conference call for financial analysts and investors will be held on Tuesday, March 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 10152722.
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.
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Contact:
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Investor Relations
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Phone:
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(303) 839-5504
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