 TERRE HAUTE, Ind., Aug. 03, 2020 GLOBE NEWSWIRE -- Hallador Energy Company NASDAQ HNRG today reported income of 0.25 million, 0.01 per share and adjusted EBITDA of 13.2 million. Brent Bilsland, President and Chief Executive Officer, stated, Hallador was profitable, despite the pandemic which wreaked havoc on energy markets. We further lowered our cost structure and debt levels, while focusing on helping customers manage inventory levels. We are cautiously optimistic as coal shipments, energy markets and hopefully the world have begun a recovery. During Q2 2020, production costs fell to 28.94 per ton, a 9 reduction over the prior quarter, even as shipment delays resulted in lower sales volumes. In the first half of 2020, bank debt was reduced by 19 million, and operating cash flow was 17.2 million, in spite of coal inventories increasing by 13.8 million. We anticipate shipments to improve in the second half of the year and inventory levels to decline, improving operating cash flow. As of June 30, 2020, our liquidity was 52.6 million and our leverage ratio remained below 3.0X, which is comfortably within our covenant of 4.0X.Solid Sales Position Through 2022 Due to the impacts and economic uncertainty of COVID-19, the Company is suspending sales guidance but still carries a strong contracted sales position through 2022. Contracted Estimated Tons Priced Year millions per ton 2020 Q3 Q4 3.7 40.10 2021 5.2 40.10 2022 5.3 40.60 14.2 ___ 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. The table below represents some of our critical metrics in thousands except for per ton data: Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 Net Income loss 254 3,344 3,406 3,656 Total Revenues 52,081 72,310 114,619 161,623 Tons Sold 1,244 1,807 2,770 3,937 Average Price per Ton 40.57 39.35 40.58 39.71 Bank Debt 161,113 173,100 161,113 173,100 Operating Cash Flow 918 2,864 17,174 23,711 Adjusted EBITDA 13,175 16,423 27,074 41,658 Adjusted Free Cash Flow 6,281 5,943 13,094 20,595 Defined as EBITDA plus stock-based compensation, ARO accretion, change in fair value of fuel hedges, less the effects of our equity method investments and Hourglass Sands. Defined as net income plus deferred income taxes, DDA, ARO accretion, change in fair value of fuel hedges, 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. Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 Net income loss 254 3,344 3,406 3,656 Income tax expense benefit 618 191 2,794 155 Loss from Hourglass Sands 63 140 141 391 Income loss from equity method investments 1,231 132 1,286 166 DDA 10,215 12,092 20,838 23,824 ARO accretion 343 314 676 623 Gain on impairment and disposal of assets 100 100 Gain on marketable securities 45 14 348 Interest Expense 2,834 5,369 8,548 9,988 Other amortization 1,396 1,156 2,822 2,291 Change in fair value of fuel hedges 398 - 913 Stock-based compensation 317 518 636 1,012 Adjusted EBITDA 13,175 16,423 27,074 41,658 Reconciliation of GAAP net income to non-GAAP adjusted free cash flow in thousands. Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 Net income loss 254 3,344 3,406 3,656 Income loss from equity method investments 1,231 132 1,286 166 Deferred income tax benefit 618 113 2,270 306 DDA 10,217 12,096 20,844 23,834 ARO accretion 343 314 676 623 Deferred financing costs amortization 609 542 1,076 1,085 Change in fair value of interest rate swaps 617 1,843 1,976 2,856 Change in fair value of fuel hedges 398 913 Gain on sale of assets 100 100 Maintenance capex 2,578 6,164 6,048 12,836 Stock-based compensation less taxes paid 300 511 619 1,005 Adjusted Free Cash Flow 6,281 5,943 13,094 20,595 Conference Call As previously announced, our earnings conference call for financial analysts and investors will be held on Tuesday, August 4, 2020, 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 10138494. 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 Contact Investor Relations Phone 812 299-2800 