TERRE HAUTE, Ind.,– Hallador Energy Company (Nasdaq: HNRG) reports financial and operating results for the year ended December 31, 2019. Hallador filed its Form 10-K after the markets closed today.
Brent Bilsland, President and Chief Executive Officer, commented, “After experiencing negative free cash flow at Carlisle over the past 18 months, we have decided to permanently close Carlisle which will further reduce our overall cost structure, maximize per ton margins and, reduce current and future capex by utilizing Carlisle equipment and parts at Oaktown. As we reduce coal and parts inventories, we will generate significant cash to be utilized for debt reduction.”
The table below represents some of our critical metrics (in thousands except for per ton data):
Year Ended |
|||||||
December 31, |
|||||||
2019 |
2018 |
||||||
Net Income (loss) |
$ |
(59,854) |
$ |
7,621 |
|||
Total Revenues |
$ |
323,462 |
$ |
293,557 |
|||
Tons Sold |
8,070 |
7,365 |
|||||
Average Price per Ton |
$ |
39.34 |
$ |
39.62 |
|||
Bank Debt |
$ |
180,150 |
$ |
188,463 |
|||
Operating Cash Flow |
$ |
38,243 |
$ |
51,570 |
|||
Adjusted EBITDA* |
$ |
68,761 |
$ |
74,085 |
|||
Adjusted Free Cash Flow ** |
$ |
29,755 |
$ |
35,839 |
*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. |
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).
Year Ended |
|||||||
December 31, |
|||||||
2019 |
2018 |
||||||
Net income (loss) |
$ |
(59,854) |
$ |
7,621 |
|||
Income tax benefit |
(22,347) |
(4,075) |
|||||
Loss from Hourglass Sands |
540 |
1,169 |
|||||
Loss from equity method investments |
527 |
187 |
|||||
DD&A |
48,554 |
44,157 |
|||||
ARO accretion |
1,272 |
1,167 |
|||||
Loss on impairment & disposal of assets |
77,792 |
561 |
|||||
Loss (gain) on marketable securities |
(593) |
226 |
|||||
Interest Expense |
15,998 |
16,288 |
|||||
Other amortization |
5,039 |
3,614 |
|||||
Stock-based compensation |
1,833 |
3,170 |
|||||
Adjusted EBITDA |
$ |
68,761 |
$ |
74,085 |
|||
Reconciliation of GAAP “net income” to non-GAAP “adjusted free cash flow” (in thousands).
Year Ended |
||||||
December 31, |
||||||
2019 |
2018 |
|||||
Net income (loss) |
$ |
(59,854) |
$ |
7,621 |
||
Loss from equity method investments |
527 |
187 |
||||
Deferred income tax benefit |
(21,822) |
(2,287) |
||||
DD&A |
48,572 |
44,167 |
||||
ARO accretion |
1,272 |
1,167 |
||||
Deferred financing costs amortization |
2,095 |
2,024 |
||||
Change in fair value of interest rate swaps |
2,186 |
2,182 |
||||
Loss on impairment & disposal of assets |
77,792 |
561 |
||||
Maintenance capex |
(22,488) |
(22,655) |
||||
Stock-based compensation less taxes paid |
1,475 |
2,872 |
||||
Adjusted Free Cash Flow |
$ |
29,755 |
$ |
35,839 |
||