NEW YORK, NY / ACCESSWIRE / March 9, 2021 / Hallador Energy Co. (NASDAQ:HNRG) will be discussing their earnings results in their 2020 Fourth Quarter Earnings call to be held on March 9, 2021 at 2:00 PM Eastern Time.
Shares of Hallador Energy (NASDAQ:HNRG) increased by 57.41% in the past three months. Before we understand the importance of debt, let us look at how much debt Hallador Energy has. Hallador Energy's Debt According to the Hallador Energy's most recent financial statement as reported on November 2, 2020, total debt is at $150.20 million, with $113.72 million in long-term debt and $36.47 million in current debt. Adjusting for $5.30 million in cash-equivalents, the company has a net debt of $144.89 million. Let's define some of the terms we used in the paragraph above. Current debt is the portion of a company's debt which is due within 1 year, while long-term debt is the portion due in more than 1 year. Cash equivalents include cash and any liquid securities with maturity periods of 90 days or less. Total debt equals current debt plus long-term debt minus cash equivalents. Investors look at the debt-ratio to understand how much financial leverage a company has. Hallador Energy has $400.21 million in total assets, therefore making the debt-ratio 0.38. As a rule of thumb, a debt-ratio more than one indicates that a considerable portion of debt is funded by assets. A higher debt-ratio can also imply that the company might be putting itself at risk for default, if interest rates were to increase. However, debt-ratios vary widely across different industries. A debt ratio of 35% might be higher for one industry and average for another. Why Debt Is Important Debt is an important factor in the capital structure of a company, and can help it attain growth. Debt usually has a relatively lower financing cost than equity, which makes it an attractive option for executives. However, interest-payment obligations can have an adverse impact on the cash-flow of the company. Equity owners can keep excess profit, generated from the debt capital, when companies use the debt capital for its business operations. Looking for stocks with low debt-to-equity ratios? Check out Benzinga Pro, a market research platform which provides investors with near-instantaneous access to dozens of stock metrics - including debt-to-equity ratio. Click here to learn more. See more from BenzingaClick here for options trades from BenzingaEarnings Scheduled For March 8, 2021Hallador Energy's Earnings: A Preview© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
TERRE HAUTE, Ind., March 09, 2021 (GLOBE NEWSWIRE) -- 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.” 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. 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. Shipments totaled 6.0 million tons. Extended customer contracts with multiple customers. 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. Oaktown costs over that same period were $29.84 and $28.35. Solid Sales Position Through 2022 We expect to add to our strong forward contracted sales position as the markets recover later this year. Contracted Estimated Tons Priced Year (millions)* per ton 2021 5.1 $39.40 2022 5.1 $39.25 10.2 * 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): December 31, 2020 2019 Net loss $(6,220) $(59,854)Total revenues $245,295 $323,462 Tons sold 5,968 8,070 Average price per ton $40.56 $39.34 Bank debt $137,738 $180,150 Operating cash flow $52,576 $38,243 Adjusted EBITDA* $53,501 $68,761 Adjusted Free Cash Flow ** $27,595 $29,755 *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). December 31, 2020 2019 Net loss $(6,220) $(59,854)Income tax benefit (2,658) (22,347)Loss from Hourglass Sands 270 540 (Income) loss from equity method investments (1,054) 527 DD&A 39,636 48,554 Asset impairment 1,799 77,882 ARO accretion 1,381 1,272 Loss (gain) on disposal of assets 38 (90)Unrealized gain on marketable securities (14) (593)Interest Expense 13,030 15,998 Other amortization 5,760 5,039 Change in fair value of fuel hedges 322 - Stock-based compensation 1,211 1,833 Adjusted EBITDA $53,501 $68,761 Reconciliation of GAAP "net income" to non-GAAP "adjusted free cash flow" (in thousands). December 31, 2020 2019 Net loss $(6,220) $(59,854)(Income) loss from equity method investments (1,054) 527 Deferred income tax benefit (2,060) (21,822)DD&A 39,644 48,572 Asset impairment 1,799 77,882 ARO accretion 1,381 1,272 Deferred financing costs amortization 2,296 2,095 Change in fair value of interest rate swaps 68 2,186 Change in fair value of fuel hedges 322 - Loss (gain) on disposal of assets 38 (90)Maintenance capex (9,755) (22,488)Stock-based compensation less taxes paid 1,136 1,475 Adjusted Free Cash Flow $27,595 $29,755 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. Contact: Investor RelationsPhone:(303) 839-5504