þ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Colorado | 84-1014610 | |
(State of Incorporation) | (I.R.S. Employer Identification No.) | |
1660 Lincoln St., Suite 2700, Denver, Colorado | 80264-2701 | |
(Address of Principal Executive Offices) | (Zip Code) |
Large accelerated filer | Accelerated filer | ||
Non-accelerated filer | Smaller reporting company þ |
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes |
September 30, 2009 | December 31, 2008 * | March 31, 2009 | December 31, 2008 * | ||||||||||
ASSETS | |||||||||||||
Current assets: | |||||||||||||
ASSETS Current assets: | |||||||||||||
Cash and cash equivalents | $ | 14,750 | $ | 21,013 | $ | 19,764 | $ | 21,013 | |||||
Certificates of deposit | 1,021 | 2,838 | |||||||||||
Prepaid Federal income taxes | 1,486 | 1,531 | |||||||||||
Federal income tax receivable | 417 | 1,531 | |||||||||||
Accounts receivable | 6,769 | 6,113 | 6,732 | 6,113 | |||||||||
Coal inventory | 1,620 | 776 | 71 | 776 | |||||||||
Other | 2,789 | 1,928 | 1,814 | 1,928 | |||||||||
Total current assets | 28,435 | 31,361 | 31,636 | 31,361 | |||||||||
Coal properties, at cost: | |||||||||||||
Land, buildings and equipment | 84,276 | 55,027 | 64,489 | 55,027 | |||||||||
Mine development | 46,402 | 45,289 | 48,426 | 45,289 | |||||||||
130,678 | 100,316 | 112,915 | 100,316 | ||||||||||
Less - accumulated depreciation, depletion, and amortization | (13,586 | ) | (7,233 | ) | (9,890 | ) | (7,233 | ) | |||||
117,092 | 93,083 | 103,025 | 93,083 | ||||||||||
Investment in Savoy | 6,955 | 7,911 | 7,652 | 7,911 | |||||||||
Deferred income taxes, net | 2,414 | ||||||||||||
Other assets | 2,355 | 3,710 | 2,505 | 3,710 | |||||||||
$ | 157,251 | $ | 136,065 | $ | 144,818 | $ | 136,065 | ||||||
LIABILITIES AND EQUITY | |||||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||||
Current liabilities: | |||||||||||||
Current portion of bank debt | $ | 7,500 | $ | 2,500 | $ | 5,000 | $ | 2,500 | |||||
Accounts payable and accrued liabilities | 9,561 | 11,563 | 10,210 | 11,563 | |||||||||
State income tax payable | 483 | 605 | 1,173 | 605 | |||||||||
Other | 609 | 310 | 18 | 310 | |||||||||
Total current liabilities | 18,153 | 14,978 | 16,401 | 14,978 | |||||||||
Long-term liabilities: | |||||||||||||
Bank debt, net of current portion | 30,000 | 37,500 | 35,000 | 37,500 | |||||||||
Interest rate swaps, at estimated fair value | 1,643 | 2,290 | 2,133 | 2,290 | |||||||||
Deferred income taxes | 1,700 | 3,681 | 1,700 | ||||||||||
Asset retirement obligations | 912 | 686 | 696 | 686 | |||||||||
Other | 4,345 | 4,345 | 4,345 | 4,345 | |||||||||
Total long-term liabilities | 36,900 | 46,521 | 45,855 | 46,521 | |||||||||
Total liabilities | 55,053 | 61,499 | 62,256 | 61,499 | |||||||||
Equity: | |||||||||||||
Hallador stockholders' equity: | |||||||||||||
Hallador stockholders' equity | |||||||||||||
Preferred stock, $.10 par value, 10,000,000 shares authorized; none issued | |||||||||||||
Common stock, $.01 par value, 100,000,000 shares authorized; 27,758,023 and 22,446,028 outstanding | 277 | 224 | |||||||||||
Common stock, $.01 par value, 100,000,000 shares authorized; 22,446,028 outstanding | 224 | 224 | |||||||||||
Additional paid-in capital | 84,587 | 69,739 | 69,800 | 69,739 | |||||||||
Retained earnings | 17,334 | 2,920 | 9,969 | 2,920 | |||||||||
Total Hallador stockholders' equity | 102,198 | 72,883 | 79,993 | 72,883 | |||||||||
Noncontrolling interest | 1,683 | 2,569 | 1,683 | ||||||||||
Total equity | 102,198 | 74,566 | 82,562 | 74,566 | |||||||||
$ | 157,251 | $ | 136,065 | $ | 144,818 | $ | 136,065 |
Nine months ended | Three months ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
Revenue: | ||||||||||||||||
Coal sales | $ | 85,140 | $ | 41,688 | $ | 29,543 | $ | 17,726 | ||||||||
Equity (loss) – Savoy | (956 | ) | (103 | ) | (407 | ) | (378 | ) | ||||||||
Other | 770 | 894 | (25 | ) | 112 | |||||||||||
84,954 | 42,479 | 29,111 | 17,460 | |||||||||||||
Costs and expenses: | ||||||||||||||||
Cost of coal sales | 48,332 | 27,579 | 16,902 | 11,127 | ||||||||||||
DD&A | 6,353 | 3,213 | 2,566 | 1,282 | ||||||||||||
SG&A | 3,046 | 2,270 | 1,306 | 902 | ||||||||||||
Interest (1) | 1,431 | 2,227 | 603 | 851 | ||||||||||||
59,162 | 35,289 | 21,377 | 14,162 | |||||||||||||
Income before income taxes | 25,792 | 7,190 | 7,734 | 3,298 | ||||||||||||
Less income taxes | (9,358 | ) | (3,218 | ) | ||||||||||||
Net income | 16,434 | 7,190 | 4,516 | 3,298 | ||||||||||||
Less: net income attributable to the noncontrolling interest | (2,020 | ) | (846 | ) | (643 | ) | (365 | ) | ||||||||
Net income attributable to Hallador | $ | 14,414 | $ | 6,344 | $ | 3,873 | $ | 2,933 | ||||||||
Net income per share attributable to Hallador: | ||||||||||||||||
Basic and diluted | $ | .63 | $ | .36 | $ | .17 | $ | .14 | ||||||||
Weighted average shares outstanding: | ||||||||||||||||
Basic and diluted | 22,753 | 17,824 | 23,358 | 20,707 |
Three months ended March 31, | ||||||||||
2009 | 2008 | |||||||||
Revenue: | ||||||||||
Coal Sales | $ | 29,811 | $ | 9,681 | ||||||
Equity (loss) - Savoy | (259 | ) | (31 | ) | ||||||
Other | 458 | 561 | ||||||||
30,010 | 10,211 | |||||||||
Costs and expenses: | ||||||||||
Cost of coal sales | 15,321 | 7,585 | ||||||||
DD&A | 1,769 | 905 | ||||||||
G&A | 940 | 600 | ||||||||
Interest | 382 | 1,532 | * | |||||||
18,412 | 10,622 | |||||||||
Income (loss) before income taxes | 11,598 | (411 | ) | |||||||
Income taxes: | ||||||||||
Current | 1,682 | |||||||||
Deferred | 1,981 | |||||||||
3,663 | ||||||||||
Net income (loss) | 7,935 | (411 | ) | |||||||
Less: net (income) loss attributable to the noncontrolling interest | (886 | ) | 74 | |||||||
Net income (loss) attributable to Hallador | $ | 7,049 | $ | (337 | ) | |||||
Net income (loss) per share: | ||||||||||
Basic and diluted | $ | .31 | $ | (.02 | ) | |||||
Weighted average shares outstanding: | ||||||||||
Basic and diluted | 22,446 | 16,363 |
Nine months ended September 30, | ||||||||
2009 | 2008 | |||||||
Operating activities: | ||||||||
Cash provided by operating activities | $ | 31,824 | $ | 7,166 | ||||
Investing activities: | ||||||||
Acquisition of additional 20% interest in Sunrise* | (11,771 | ) | ||||||
Capital expenditures for coal properties | (33,635 | ) | (10,852 | ) | ||||
Other | (130 | ) | 193 | |||||
Cash used in investing activities | (33,765 | ) | (22,430 | ) | ||||
Financing activities: | ||||||||
Proceeds from bank debt | 2,000 | |||||||
Payments of bank debt | (2,500 | ) | (1,334 | ) | ||||
Acquisition of remaining 20% interest in Sunrise* | (25,805 | ) | ||||||
Proceeds from stock sales | 24,892 | 21,983 | ||||||
Cash distributions to noncontrolling interests | (909 | ) | ||||||
Other | (47 | ) | ||||||
Cash (used in) provided by financing activities | (4,322 | ) | 22,602 | |||||
Increase (decrease) in cash and cash equivalents | (6,263 | ) | 7,338 | |||||
Cash and cash equivalents, beginning of period | 21,013 | 6,978 | ||||||
Cash and cash equivalents, end of period | $ | 14,750 | $ | 14,316 | ||||
Cash paid for interest (net of amount capitalized - $293 and $176) | $ | 2,338 | $ | 2,308 | ||||
Cash paid for state income taxes | $ | 849 | ||||||
Change in accounts payable for coal properties | $ | (3,381 | ) | $ | 994 |
Three months ended March 31, | ||||||||
2009 | 2008 | |||||||
Operating activities: | ||||||||
Cash provided by operating activities | $ | 13,391 | $ | 730 | ||||
Investing activities: | ||||||||
Capital expenditures for coal properties | (12,802 | ) | (2,941 | ) | ||||
Other | (1,838 | ) | 604 | |||||
Cash used in investing activities | (14,640 | ) | (2,337 | ) | ||||
Financing activities: | ||||||||
Proceeds from bank debt | 1,698 | |||||||
Cash provided by financing activities | 1,698 | |||||||
Increase (decrease) in cash and cash equivalents | (1,249 | ) | 91 | |||||
Cash and cash equivalents, beginning of period | 21,013 | 6,978 | ||||||
Cash and cash equivalents, end of period | $ | 19,764 | $ | 7,069 | ||||
Cash paid for interest (net of amount capitalized – $300 and $100) | $ | 963 | $ | 672 |
Shares | Common Stock | Additional Paid-in Capital | Retained Earnings | Total | ||||||||||||||||
Balance December 31, 2008 | 22,446,028 | $ | 224 | $ | 69,739 | $ | 2,920 | $ | 72,883 | |||||||||||
Equity offering | 4,150,000 | 42 | 24,850 | 24,892 | ||||||||||||||||
Stock issued to Sunrise members for their remaining 20% interest valued at par (fair value of $6,800); See Note 5 | 1,133,328 | 11 | (11 | ) | ||||||||||||||||
Cash ($25,805) paid to Sunrise members for their remaining 20% interest, net of deferred income tax assets of $12,700 and $2,794 to close out the minority interest (treated as an equity transaction) | (10,311 | ) | (10,311 | ) | ||||||||||||||||
Restricted shares issued | 28,667 | 161 | 161 | |||||||||||||||||
Stock-based compensation | 139 | 139 | ||||||||||||||||||
Other | 20 | 20 | ||||||||||||||||||
Net income | 14,414 | 14,414 | ||||||||||||||||||
Balance September 30, 2009 | 27,758,023 | $ | 277 | $ | 84,587 | $ | 17,334 | $ | 102,198 |
1. | General Business |
2. | Equity Investment in Savoy |
Current assets | $ | |||
PP&E | | |||
$ | ||||
Total liabilities | $ | |||
Partners' capital | | |||
$ |
2009 | 2008 | ||||
Revenue | $5,556 | $5,587 | |||
Expenses | (7,668) | (5,078) | |||
Net (loss) income | $ (2,112) | $ 509 |
2009 | 2008 | ||||
Revenue | $ 1,981 | $1,460 | |||
Expenses | (2,556) | (1,289) | |||
Net income (loss) | $ (575) | $ 171 | |||
PART II—OTHER INFORMATION | |
ITEM 6. | EXHIBITS |
(a) | 31.1 -- SOX 302 Certification 31.2 -- SOX 302 Certification 32 -- SOX 906 Certification |
HALLADOR PETROLEUM COMPANY
8 |