Hallador Energy Company Reports Third Quarter 2020 Financial and Operating Results

About this update from Hallador Energy Company

[{"type":"text","content":"TERRE HAUTE, Ind., Nov. 02, 2020 (GLOBE NEWSWIRE) -- Hallador Energy Company (NASDAQ – HNRG) today reported net income of $1.9 million, $.06 Per Share. \n Brent Bilsland, President and Chief Executive Officer, stated, \"We are intensely focused on creating positive cash flow to aggressively pay down debt. Year to date, we have paid down $33 million and are on pace to reduce our total bank debt by 20% - 25% for the year.\" During Q3 2020, shipments improved over Q2 levels and our costs of $29.30 per ton remained within our expectations.In the first nine months of 2020, bank debt was reduced by $33 million, and operating cash flow was $34.1 million. Coal inventories decreased $4.5 million in Q3. We anticipate shipments increasing in Q4 and inventory levels to continue to decline, further improving operating cash flow.As of September 30, 2020, both our liquidity and our leverage ratio improved to $52.7 million and 2.46X, respectively. Leverage was comfortably within our covenant of 3.5X. Solid Sales Position Through 2022 Due to the impacts and economic uncertainty of COVID-19, the Company is continuing to suspend sales guidance, but still carries a strong contracted sales position through 2022. Contracted Estimated Tons Priced Year (millions)* per ton 2020 (Q4) 2.1 $40.00 2021 5.0 $39.30 2022 5.3 $40.20 12.4 * Contracted tons are subject to adjustment due to the exercise of customer options to either take additional tons or reduce tonnage if such options exist in the customer contract. Our actual shipments for the remainder of 2020 are estimated to be 1.7 million tons as we expect our customers to defer or carryover 400,000 tons from 2020 to 2021 from the contracted tons noted above, resulting in contracted and carryover tons of 5.4 million for 2021. The table below represents some of our critical metrics (in thousands except for per ton data): Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Net Income (loss) $1,923 $(3,723) $(1,483) $(67) Total Revenues $65,128 $83,096 $179,747 $244,719 Tons Sold 1,585 2,118 4,355 6,055 Average Price per Ton $40.85 $39.13 $40.68 $39.51 Bank Debt $146,925 $172,000 $146,925 $172,000 Operating Cash Flow $15,810 $12,612 $34,109 $36,323 Adjusted EBITDA* $17,077 $10,451 $44,151 $52,109 Adjusted Free Cash Flow ** $11,557 $1,100 $24,651 $21,695 EBITDA, adjusted EBITDA,...

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