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Hallador Energy Reports 2019 2nd Quarter Financial And Operating Results
TERRE HAUTE, Ind., Aug. 5, 2019 /PRNewswire/ -- Hallador Energy Company (Nasdaq: HNRG) reports financial and operating results for the quarter ended June 30,
About this update from Hallador Energy Company
[{"type":"text","content":"TERRE HAUTE, Ind., Aug. 5, 2019 /PRNewswire/ -- Hallador Energy Company (Nasdaq: HNRG) reports financial and operating results for the quarter ended June 30, 2019. Hallador filed its Form 10-Q after the markets closed today.\nBrent Bilsland, President and Chief Executive Officer, commented, \"Hallador experienced unprecedented success continuing to lock in sales early for the 2020 calendar year. Next year's sales position is now 88% of our 8 million-ton target. Additionally, Hallador continued to generate solid Free Cash Flow in the 2nd quarter of 2019. These positive results were largely masked by a non-cash earnings adjustment and the seasonal mix of contract prices and deliveries. Good things are coming for Hallador in the second half of 2019.\" \nQ2 2019 NET LOSS OF $3.3 MILLION, ($0.11) PER SHAREThe majority of loss was due to a $1.8 million non-cash adjustment in the fair market value of our interest rate swaps as a result of our quarterly mark to market. However, Hallador intends to hold its interest rate swaps long-term, negating much of the effects of quarterly fluctuations in valuation. Additionally, the seasonal nature of our contracts led to 2nd Quarter 2019 shipments being 15% less than 1st Quarter 2019. First half 2019 shipments were 49% of our 8 million-ton annualized target. These circumstances detract from a quarter that generated $16.4 million in adjusted EBITDA and a first half of 2019 that generated $41.7 million in adjusted EBITDA.77% SOLD THROUGH 2022 = GREAT FREE CASH FLOW VISIBILITY When looking at the remainder of 2019 through 2022, 21.7 million tons are sold. Thus, we have ~77% of our sales contracted over the next three and a half years at an 8.0 million-ton annualized pace. The reason for our continued sales success is, throughout 2018 and 1st Quarter 2019, our Sunrise Coal subsidiary grew from 9 customers in 3 states to a peak of 17 customers in 8 states. This growth in customers has increased our sales volume from 6.6 million tons in 2017 to a projected 8.0 million tons in 2019.The table below represents some of our critical metrics (in thousands except for per ton data):\nEBITDA, 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 acco...