[ad_1]
EARTH HAUTE, Ind., May 3, 2021 (GLOBE NEWSWIRE) – Hallador Energy Company (NASDAQ – HNRG) today announced a net loss of $ 1.0 million ($ 0.03) per share, adjusted EBITDA of $ 11.4 million.
Brent Bilsland, President and CEO, said: “We are pleased that our cost structure was significantly weaker in the first quarter of 2021. This productivity increase has yet to be turned into cash as shipments were interrupted due to the colder weather on February 30. Although the cold weather delayed our cash flow, it led to continued improvement in market conditions which allowed us to increase our sales by 400,000 tonnes for the year. “
|
â— |
Production costs in the first quarter of 2021 were $ 28.88 / tonne, significantly lower than costs of $ 33.87 in the fourth quarter of 2020 and $ 31.67 in the first quarter of 2020. |
|
â—‹ |
Oaktown costs were $ 27.21 for the first quarter of 2021 and $ 29.92 for the first quarter of 2020. |
|
â– |
Shipments were anemic 1.2 million tonnes in the first quarter, due to transport delays caused by extreme weather conditions. Thus, ~ 180,000 tonnes of Q1 shipments will now be delivered during the 2nd and 3rd quarters of this year. |
|
â– |
The increased productivity associated with shipping delays has resulted in an increase in coal inventories, which will be needed to cope with increased shipments for the remainder of the year. |
|
â— |
Hallador generated $ 5.4 million in adjusted free cash flow during the quarter. |
|
â—‹ |
As at March 31, 2021, our bank indebtedness stood at $ 136.1 million, bringing our liquidity to $ 27.9 million and our debt ratio to 2.78X, well below our commitment of 3 , 25X. |
|
â— |
Solid commercial position until 2022 |
|
â—‹ |
We added approximately 400,000 tonnes under contract to our position during the quarter and plan to add additional tonnes later in the year as markets recover and gas prices continue to rise. |
|
Contracted |
Valued |
|||||
|
Tons |
Expensive |
|||||
|
Year |
(millions)* |
per ton |
||||
|
2021 (Q2 – Q4) |
4.5 |
$ 39.25 |
||||
|
2022 |
5.1 |
$ 39.35 |
||||
|
9.6 |
||||||
|
* Contract tons are subject to force majeure adjustments and the exercise of the customer’s options to take additional tons or reduce tonnage if such an option exists in the customer contract. |
||||||
The table below represents some of our critical measurements (in thousands except for data per tonne):
|
Three months ended |
||||||||
|
March, 31st, |
||||||||
|
2021 |
2020 |
|||||||
|
Net loss |
$ |
(1,032 |
) |
$ |
(3,660 |
) |
||
|
Total income |
$ |
46,695 |
$ |
62,483 |
||||
|
Tons sold |
1,174 |
1,526 |
||||||
|
Average price per tonne |
$ |
39.08 |
$ |
40.58 |
||||
|
Bank debt |
$ |
136,050 |
$ |
168,050 |
||||
|
Operating cash flow |
$ |
2 973 |
$ |
16,256 |
||||
|
Adjusted EBITDA * |
$ |
11,419 |
$ |
13 899 |
||||
|
Adjusted free cash flow ** |
$ |
5,370 |
$ |
6 813 |
||||
|
* Defined as EBITDA plus stock-based compensation and ARO accretion, less the effects of our equity-accounted investments and Hourglass Sands. |
|
** Defined as net profit plus deferred income taxes, DD&A, ARO balance and stock compensation, less maintenancepeak and the effects of our investments accounted for by the equity method. |
EBITDA, Adjusted EBITDA and Adjusted Free Cash Flow should not be considered alternatives to net income, operating income, cash flow from operating activities or any other measure of financial performance presented in accordance with GAAP. . Our method of calculating EBITDA, Adjusted EBITDA and Adjusted Free Cash Flow may not be the same as that used to calculate similar measures presented by other companies.
Management believes that the presentation of these 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 on our core operating performance and our ability to generate and distribute cash flow, (ii) provide investors with the financial and analytical framework on which management bases financial, operational, compensation and planning decisions, and (iii) present measures that investors, rating agencies and creditors have found useful in evaluating our results.
Reconciliation of GAAP “net income†and non-GAAP “Adjusted EBITDA†(in thousands).
|
Three months ended |
||||||||
|
March, 31st, |
||||||||
|
2021 |
2020 |
|||||||
|
Net loss |
$ |
(1,032 |
) |
$ |
(3,660 |
) |
||
|
Income tax benefit |
(1729 |
) |
(2 176 |
) |
||||
|
Loss of hourglass sands |
80 |
78 |
||||||
|
Income from equity-accounted investments |
– |
(55 |
) |
|||||
|
Depreciation, depletion and amortization |
10,307 |
10 623 |
||||||
|
Increase in asset retirement obligations |
363 |
333 |
||||||
|
Gain on marketable securities |
– |
(14 |
) |
|||||
|
Interest charges |
1,898 |
5,714 |
||||||
|
Other depreciation |
1,489 |
1,426 |
||||||
|
Change in fair value of fuel hedges |
(239 |
) |
1 311 |
|||||
|
Stock-based compensation |
282 |
319 |
||||||
|
Adjusted EBITDA |
$ |
11,419 |
$ |
13 899 |
||||
Reconciliation of GAAP “net income†to non-GAAP “adjusted free cash flow†(in thousands).
|
Three months ended |
||||||||
|
March, 31st, |
||||||||
|
2021 |
2020 |
|||||||
|
Net loss |
$ |
(1,032 |
) |
$ |
(3,660 |
) |
||
|
Income from equity-accounted investments |
– |
(55 |
) |
|||||
|
Deferred tax benefit |
(1729 |
) |
(1,652 |
) |
||||
|
Depreciation, depletion and amortization |
10,307 |
10 627 |
||||||
|
Increase in asset retirement obligations |
363 |
333 |
||||||
|
Amortization of deferred financing costs |
611 |
467 |
||||||
|
Change in fair value of interest rate swaps |
(848 |
) |
2,593 |
|||||
|
Change in fair value of fuel hedges |
(239 |
) |
1 311 |
|||||
|
Maintenance capex |
(2,343 |
) |
(3,470 |
) |
||||
|
Stock-based compensation less taxes paid |
280 |
319 |
||||||
|
Adjusted free cash flow |
$ |
5,370 |
$ |
6 813 |
||||
Conference call
As previously announced, our earnings conference call for financial analysts and investors will take place on Tuesday, May 4, 2021 at 2:00 p.m. EST. The telephone numbers for the live conference call are: toll free (888) 347-5317; Canadian callers toll free (855) 669-9657; Conference ID number: Hallador Energy Company HNRG Call.
An audio replay of the conference call will be available for one week. To access the audio replay, dial the toll-free number US (877) 344-7529; Canada toll free (855) 669-9658 and ask to be connected to replay access code 0155565.
Hallador is headquartered in Terre Haute, Indiana and, through its wholly-owned subsidiary, Sunrise Coal, LLC, produces coal in the Illinois Basin for the power generation industry. . To learn more about Hallador or Sunrise, visit our website at www.halladorenergy.com.
|
Contact: |
Investor Relations |
|
Call: |
(303) 839-5504 |
[ad_2]
