þ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
OR |
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 (Do not check if a smaller reporting company) | 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 |
ASSETS Current assets: | June 30, 2009 | December 31, 2008 * | ||||||
Cash and cash equivalents | $ | 15,832 | $ | 21,013 | ||||
Certificates of deposit | 2,862 | |||||||
Prepaid Federal income taxes | 888 | 1,531 | ||||||
Accounts receivable | 5,728 | 6,113 | ||||||
Coal inventory | 308 | 776 | ||||||
Other | 1,867 | 1,928 | ||||||
Total current assets | 27,485 | 31,361 | ||||||
Coal properties, at cost: | ||||||||
Land, buildings and equipment | 73,366 | 55,027 | ||||||
Mine development | 48,952 | 45,289 | ||||||
122,318 | 100,316 | |||||||
Less - accumulated depreciation, depletion, and amortization | (11,908 | ) | (7,233 | ) | ||||
110,410 | 93,083 | |||||||
Investment in Savoy | 7,362 | 7,911 | ||||||
Other assets | 2,651 | 3,710 | ||||||
$ | 147,908 | $ | 136,065 | |||||
LIABILITIES AND EQUITY | ||||||||
Current liabilities: | ||||||||
Current portion of bank debt | $ | 7,500 | $ | 2,500 | ||||
Accounts payable and accrued liabilities | 7,503 | 11,563 | ||||||
State income tax payable | 602 | 605 | ||||||
Other | 626 | 310 | ||||||
Total current liabilities | 16,231 | 14,978 | ||||||
Long-term liabilities: | ||||||||
Bank debt, net of current portion | 32,500 | 37,500 | ||||||
Interest rate swaps, at estimated fair value | 1,759 | 2,290 | ||||||
Deferred income taxes | 6,351 | 1,700 | ||||||
Asset retirement obligations | 714 | 686 | ||||||
Other | 4,345 | 4,345 | ||||||
Total long-term liabilities | 45,669 | 46,521 | ||||||
Total liabilities | 61,900 | 61,499 | ||||||
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; 22,446,028 outstanding | 224 | 224 | ||||||
Additional paid-in capital | 69,859 | 69,739 | ||||||
Retained earnings | 13,461 | 2,920 | ||||||
Total Hallador stockholders' equity | 83,544 | 72,883 | ||||||
Noncontrolling interest | 2,464 | 1,683 | ||||||
Total equity | 86,008 | 74,566 | ||||||
$ | 147,908 | $ | 136,065 |
September 30, 2009 | December 31, 2008 * | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 14,750 | $ | 21,013 | |||
Certificates of deposit | 1,021 | ||||||
Prepaid Federal income taxes | 1,486 | 1,531 | |||||
Accounts receivable | 6,769 | 6,113 | |||||
Coal inventory | 1,620 | 776 | |||||
Other | 2,789 | 1,928 | |||||
Total current assets | 28,435 | 31,361 | |||||
Coal properties, at cost: | |||||||
Land, buildings and equipment | 84,276 | 55,027 | |||||
Mine development | 46,402 | 45,289 | |||||
130,678 | 100,316 | ||||||
Less - accumulated depreciation, depletion, and amortization | (13,586 | ) | (7,233 | ) | |||
117,092 | 93,083 | ||||||
Investment in Savoy | 6,955 | 7,911 | |||||
Deferred income taxes, net | 2,414 | ||||||
Other assets | 2,355 | 3,710 | |||||
$ | 157,251 | $ | 136,065 | ||||
LIABILITIES AND EQUITY | |||||||
Current liabilities: | |||||||
Current portion of bank debt | $ | 7,500 | $ | 2,500 | |||
Accounts payable and accrued liabilities | 9,561 | 11,563 | |||||
State income tax payable | 483 | 605 | |||||
Other | 609 | 310 | |||||
Total current liabilities | 18,153 | 14,978 | |||||
Long-term liabilities: | |||||||
Bank debt, net of current portion | 30,000 | 37,500 | |||||
Interest rate swaps, at estimated fair value | 1,643 | 2,290 | |||||
Deferred income taxes | 1,700 | ||||||
Asset retirement obligations | 912 | 686 | |||||
Other | 4,345 | 4,345 | |||||
Total long-term liabilities | 36,900 | 46,521 | |||||
Total liabilities | 55,053 | 61,499 | |||||
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 | |||||
Additional paid-in capital | 84,587 | 69,739 | |||||
Retained earnings | 17,334 | 2,920 | |||||
Total Hallador stockholders' equity | 102,198 | 72,883 | |||||
Noncontrolling interest | 1,683 | ||||||
Total equity | 102,198 | 74,566 | |||||
$ | 157,251 | $ | 136,065 |
Six months ended | Three months ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
Revenue: | ||||||||||||||||
Coal sales | $ | 55,597 | $ | 23,962 | $ | 25,786 | $ | 14,281 | ||||||||
Equity income (loss) – Savoy | (549 | ) | 275 | (290 | ) | 306 | ||||||||||
Other | 795 | 782 | 337 | 221 | ||||||||||||
55,843 | 25,019 | 25,833 | 14,808 | |||||||||||||
Costs and expenses: | ||||||||||||||||
Cost of coal sales | 31,430 | 16,452 | 16,109 | 8,867 | ||||||||||||
DD&A | 3,787 | 1,931 | 2,018 | 1,026 | ||||||||||||
G&A | 1,740 | 1,368 | 800 | 767 | ||||||||||||
Interest (1) | 828 | 1,376 | 446 | (156 | ) | |||||||||||
37,785 | 21,127 | 19,373 | 10,504 | |||||||||||||
Income before income taxes | 18,058 | 3,892 | 6,460 | 4,304 | ||||||||||||
Income taxes | 6,140 | 2,477 | ||||||||||||||
Net income | ||||||||||||||||
Less: net income attributable to the noncontrolling interest | 11,918 | 3,983 | ||||||||||||||
(1,377 | ) | (481 | ) | (491 | ) | (555 | ) | |||||||||
Net income attributable to Hallador | $ | 10,541 | $ | 3,411 | $ | 3,492 | $ | 3,749 | ||||||||
Net income per share attributable to Hallador: | ||||||||||||||||
Basic and diluted | $ | .47 | $ | .21 | $ | .16 | $ | .23 | ||||||||
Weighted average shares outstanding: | ||||||||||||||||
Basic and diluted | 22,446 | 16,366 | 22,446 | 16,370 | ||||||||||||
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 |
(1) Included in interest expense for the |
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 |
Six months ended June 30, | ||||||||
2009 | 2008 | |||||||
Operating activities: | ||||||||
Cash provided by operating activities | $ | 23,237 | $ | 2,740 | ||||
Investing activities: | ||||||||
Capital expenditures for coal properties | (25,945 | ) | (6,264 | ) | ||||
Other | (1,877 | ) | 682 | |||||
Cash used in investing activities | (27,822 | ) | (5,582 | ) | ||||
Financing activities: | ||||||||
Proceeds from bank debt | 2,000 | |||||||
Cash distributions to noncontrolling interests | (596 | ) | ||||||
Cash provided by (used in) financing activities | (596 | ) | 2,000 | |||||
Decrease in cash and cash equivalents | (5,181 | ) | (842 | ) | ||||
Cash and cash equivalents, beginning of period | 21,013 | 6,978 | ||||||
Cash and cash equivalents, end of period | $ | 15,832 | $ | 6,136 | ||||
Cash paid for interest (net of amount capitalized - $293 and $176) | $ | 1,612 | $ | 1,440 | ||||
Cash paid for state income taxes | $ | 849 | ||||||
Change in accounts payable for coal properties | $ | (4,049 | ) | $ | (1,500 | ) | ||
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 | $ 3,638 | $ 3,670 | |||
Expenses | (4,855 | ) | (2,559 | ) | |
Net income (loss) | $(1,217 | ) | $ 1,111 | ||
2009 | 2008 | ||||
Revenue | $5,556 | $5,587 | |||
Expenses | (7,668) | (5,078) | |||
Net (loss) income | $ (2,112) | $ 509 |
PART II—OTHER INFORMATION | |
ITEM 6. | EXHIBITS |
10.1 -- Form of Purchase and Sale Agreement dated September 16, 2009 (1) 10.2 -- Form of Subscription Agreement dated September 15, 2009 (1) 10.3 -- Form of Hallador Petroleum Company Restricted Stock Unit Issuance Agreement. (1) 21.1 -- List of Subsidiaries (2) 31.1 -- SOX 302 Certification - CEO(2) 31.2 -- SOX 302 Certification - CFO(2) 32 -- SOX 906 Certification - CEO and CFO(2) --------------------------------------------- (1)IBR to the Form 8-K Filed September 18, 2009 (2)Filed herewith. |
HALLADOR PETROLEUM COMPANY | ||||
December 15, 2009 | /S/W. ANDERSON BISHOP Anderson Bishop, CFO |