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Hallador Energy Reports 2019 1st Quarter Results Of $.23 Per Share Citing Increased Coal Volumes And Revenue

DENVER, May 6, 2019 /PRNewswire/ -- Hallador Energy Company (HNRG) reports financial and operating results for the quarter ended March 31, 2019.   Hallador filed its Form 10-Q after the markets closed today.

Brent Bilsland, President and Chief Executive Officer, commented, "Hallador generated $14.7MM in Adjusted Free Cash Flow in the 1st quarter of 2019.  Considering that these results came from a company with a ~$150MM market cap and is 79% sold out for the next four years, represents exceptional value."

Highlights for the quarter include:

  • Q1 2019 NET INCOME UP 228% VS. Q1 2018
  • GROWING CUSTOMER BASE HAS LED TO 25% INCREASE IN COAL VOLUMES Q1 2019 VS. Q1 2018
  • 79% SOLD FOR 4 YEARS = GREAT FREE CASH FLOW VISABILITY
  • THE STATE OF INDIANA HAS CHOSEN COAL
  • HALLADOR TO RELOCATE CORPORATE HEADQUARTERS

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




Quarters Ended March 31,




2019



2018

Net Income


$

7,000


$

2,132

Total Revenues


$

89,313


$

66,864

Tons Sold



2,130



1,707

Average Price per Ton


$

40.02


$

39.13

Bank Debt


$

168,450


$

190,737

Operating Cash Flow


$

20,847


$

13,193

Adjusted EBITDA*


$

25,235


$

19,756

Adjusted Free Cash Flow **


$

14,652


$

10,722

_____________________________________







*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).




Quarters Ended March 31,






2019



2018


Net income


$

7,000


$

2,132


Income tax expense (benefit)



(36)



166


Loss from Hourglass Sands



251



136


Loss from equity method investments



34



83


DD&A



11,732



10,829


ARO accretion



309



282


Loss on disposal of assets



-



532


Loss (gain) on marketable securities



(303)



154


Interest Expense



4,619



2,708


Other amortization



1,135



762


Stock-based compensation



494



1,972


Adjusted EBITDA


$

25,235


$

19,756










 

 

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












Quarters Ended March 31,






2019



2018


Net Income


$

7,000


$

2,132


Loss from equity method investments



34



83


Deferred income tax expense



193



369


DD&A



11,738



10,829


ARO accretion



309



282


Deferred financing costs amortization



543



457


Change in fair value of interest rate swaps



1,013



(158)


Loss on disposal of assets



-



532


Maintenance capex



(6,672)



(5,772)


Stock-based compensation less taxes paid



494



1,968


Adjusted Free Cash Flow


$

14,652


$

10,722













Conference Call

As previously announced our earnings conference call for financial analysts and investors will be held on Tuesday, May 7, 2019, 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 10130749.

Hallador is headquartered in Denver, Colorado 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 websites at www.halladorenergy.com.

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Cision

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