Hallador Energy Company

Hello everyone and welcome to the Halladore Energy Third Quarter 2023 Earnings Call. My name is Emily and I'll be coordinating your call today. After the presentation, there will be the opportunity for any questions which you can ask by pressing start followed by the number one on your telephone keypads. I will now turn the call over to our host, Rebecca Palumbo. Please go ahead.

Thank you, Emily. Thank you, everybody, for joining us today. Yesterday afternoon, we released our third quarter 2023 financial and operating results on 410Q that is now posted on our website. With me today on this call is Brent Bilsland, our president and CEO, and Larry Martin, our CFO. After the chair's remarks, we will open up the call to your questions. Before we begin, Please note that the discussion today may contain certain forward-looking statements that are statements related to the future, not past events. In this context, forward-looking statements often address our expected future business and financial performance. While these forward-looking statements are based on information currently available to us, if one or more of these risks and uncertainties materialize, or if our assumptions prove incorrect, actual results may vary materially from those we projected or expected. For example, our estimates of mining costs, future sales, legislation, or regulations. In providing these remarks, we have no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, that may be required by law. for a discussion of those risks and uncertainties that may affect our future results. Please review the risk factors described from time to time and the reports we filed with the SEC. As a reminder, this call is being recorded. In addition, we will have an archived webcast of this earnings call on our website. We encourage you to ask questions during the Q&A, and if you are on the webcast and would like to ask a question, you will need to dial into the conference line That toll-free number is 1-833-470-1428, access code 224373. And with that, I'll turn the call over to Larry.

Thank you, Becky, and good afternoon, everyone. Before I begin, I want to define adjusted EBITDA, which we define as operating cash flow less the effects of certain subsidiary and equity method investments plus bank interest less the effects of working capital changes plus cash paid on asset retirement obligation reclamation plus other amortization. For the quarter, Halador incurred net income of 16.1 million, which was 49 cents a basic earning per share or 44 cents for diluted earning per share. For the year, net income was $55 million, $1.66 earnings per share, $1.52 diluted earnings per share. We had adjusted EBITDA for the quarter of $35.9 million, and for the year, $105.2 million. We decreased bank debt by $12.5 million for the quarter, $23.5 million for the year. Our funded bank debt as of September 30th was $61.8 million. We had letters of credit totaling $11.2 million. And our net funded bank debt was $59.2, which is bank debt less cashed. Our leverage ratio, which is defined as debt to adjusted EBITDA, was 7.1 times at September 30th.