10

Note 1
Note 2
Note 3
Note 4

Note 5

Hallador Income Statement Model

Revenue
Coal Sales (Note 1)
Tons Sold
Average Price/Ton
Total Coal Sales

FY2011

FY2012

3307
$41.73
###

3006
$43.70
###

$1,900.00
$10,653.00

$4,236.00
$304.00
$2,748.00

$405.00
$12,958.00

$459.00
$7,747.00

$5,476.00
$922.00
$6,398.00

$2,039.00
$167.00
$2,206.00

Total Comprehenisve Revnue

Total Operating Revenue

$157,354.00
$138,403.00

$141,323.00
$132,133.00

Costs of Goods Sold

Gross Comprehensive
Gross Operating

$77,094.00
$80,260.00
$61,309.00

$79,739.00
$61,584.00
$52,394.00

Other Income
MSHA Reimbursements (Note 2)
Coal Storage Fees
Sale of Land or O/G Properties
Liability Extiguishment (Note 3)
Misc
Total Other Income
Equity Income
Savoy
Sunrise Energy
Total Equity Income

Note 6
Note 7
Note 8

Note 9

Note 10

Other Operating Expenses

DD&A
Coal Exploration
Vectren Deal Costs (Note 4)
SG&A
Total Other Operating

$14,096.00
$1,132.00

$16,028.00
$2,453.00

$7,004.00
$22,232.00

$7,532.00
$26,013.00

EBIT Comprehensive
EBIT Operating

$58,028.00
$39,077.00

$35,571.00
$26,381.00

Finance Income/Expenses
Interest
EBT Comprehensive
EBT Operating

$1,288.00
$56,740.00
$37,789.00

$1,096.00
$34,475.00
$25,285.00

Taxes
Current
Deferred

$7,266.00
$136.65
$7,402.65
13.05%

$5,905.00
$4,763.00
$10,668.00
30.94%

$49,337.35
$30,386.35
$33,978.77

$23,807.00
$14,617.00
$18,217.62

28,135.00
28,694.00

28,331.00
28,843.00

Basic EPS
Comprehensive
Operating

$1.75
$1.08

$0.84
$0.52

Diluted
Comprehensive
Operating

$1.72
$1.06

$0.83
$0.51

55.87%
5.08%
10.21%
0.82%
1.38%
13.05%

60.70%
5.73%
12.20%
1.87%
3.22%
30.94%

FY2011
$137,998.00

FY2012
$131,370.00
(4.80%)

$77,094.00
$7,004.00

$79,739.00
$7,532.00

Effective Tax Rate

Net Income Comprehensive
Net Income Operating
NOPLAT
RSU and Options
Weighted Average Shares Outstanding
Basic
Diluted

Forecasting as a Percentage of Revenue

COGS
SG&A
DD&A
Coal Exploration
MSHA Reimbursment
ETR

Presentation Model

Income Statement
Revenue
% Growth
Cost of Sales
SG&A

Coal Exploration
Other Income (expenses)
Mining Operation EBITDA

$1,132.00
$405.00
$53,173.00

$2,453.00
$763.00
$42,409.00

Results from Investments:

Savoy
Sunrise Energy
Other Investment (expenses)
Return from Investments

$5,476.00
$922.00
$10,653.00
$17,051.00

$2,039.00
$167.00
$2,748.00
$4,954.00

$1,900.00

$4,236.00

EBITDA
DD&A
EBIT

$72,124.00
$14,096.00
$58,028.00

$51,599.00
$16,028.00
$35,571.00

Financial Income (Expense)

Income Taxes
ETR
Profit (Loss) For Period
Basic Earnings Per Ordinary Share

($1,288.00)
$7,402.65
13.05%
$49,337.35
$1.75

($1,096.00)
$10,668.00
30.94%
$23,807.00
$0.84

NOPLAT
NOPLAT Earnings Per Ordinary Share

$33,978.77
$1.21

$18,217.62
$0.64

Other Non-Operating Income (expences)

FY2013

FY2014

FY2015

FY2016

FY2017

3188
$43.11
###

5398
$43.33
###

9,341
$44.68
$417,355.88

10,200
$40.00
###

10,200
$40.00
###

$3,672.00
$1,238.00

$6,260.34

$6,120.00

$6,120.00

$383.00

$4,300.00
$768.00
$9,978.00

$1,366.00
$1,749.00

$6,260.34

$6,120.00

$6,120.00

$5,827.00
$629.00
$6,456.00

$5,272.00
$248.00
$5,520.00

$0.00

$0.00

$0.00

$153,870.00
$139,442.00

$241,171.00
$235,651.00

$423,616.22
$417,355.88

$414,120.00
$408,000.00

$414,120.00
$408,000.00

$94,111.00
$59,759.00
$45,331.00

$169,691.00
$71,480.00
$65,960.00

$292,149.12
$131,467.10
$125,206.76

$285,600.00
###
###

$285,600.00
###
###

$18,585.00
$2,360.00

$52,169.49
$6,260.34

$51,000.00
$6,120.00

$51,000.00
$6,120.00

$7,669.00
$28,614.00

$29,262.00
$2,362.00
$8,057.00
$12,039.00
$51,720.00

$22,954.57
$81,384.40

$22,440.00
$79,560.00

$22,440.00
$79,560.00

$31,145.00
$16,717.00

$19,760.00
$14,240.00

$50,082.71
$43,822.37

$48,960.00
$42,840.00

$48,960.00
$42,840.00

$1,547.00
$29,598.00
$15,170.00

$9,059.00
$10,701.00
$5,181.00

$50,082.71
$43,822.37

$48,960.00
$42,840.00

$48,960.00
$42,840.00

($266.00)
$7,441.00
$7,175.00
24.24%

$2,205.00
($1,723.00)
$482.00
4.50%

$12,520.68

$12,240.00

$12,240.00

$12,520.68
25.00%

$12,240.00
25.00%

$12,240.00
25.00%

$22,423.00
$7,995.00
$12,664.55

$10,219.00
$4,699.00
$13,598.59

$37,562.03
$31,301.69
$32,866.78

$36,720.00
$30,600.00
$32,130.00

$36,720.00
$30,600.00
$32,130.00

28,595.00
28,906.00

28,776.00
28,776.00

28,776.00
28,776.00

28,776.00
28,776.00

28,776.00
28,776.00

$0.78
$0.28

$0.36
$0.16

$1.31
$1.09

$1.28
$1.06

$1.28
$1.06

$0.78
$0.28

$0.36
$0.16

$1.31
$1.09

$1.28
$1.06

$1.28
$1.06

68.48%
5.58%
13.52%
1.72%
2.67%
24.24%

72.55%
5.15%
12.51%
1.01%
4.50%

70.00%
5.50%
12.50%
1.50%
1.50%
25.00%

70.00%
5.50%
12.50%
1.50%
1.50%
25.00%

70.00%
5.50%
12.50%
1.50%
1.50%
25.00%

FY2013
$137,436.00
4.62%

FY2014
$233,902.00
70.19%

FY2015
$417,355.88
78.43%

FY2016
$408,000.00
(2.24%)

FY2017
$408,000.00
0.00%

$94,111.00
$7,669.00

$169,691.00
$12,039.00

$292,149.12
$22,954.57

$285,600.00
$22,440.00

$285,600.00
$22,440.00

$2,360.00
$2,006.00
$35,302.00

$2,362.00
$1,749.00
$51,559.00

$6,260.34
$0.00
$95,991.85

$6,120.00
$0.00
$93,840.00

$6,120.00
$0.00
$93,840.00

$5,827.00
$629.00
$0.00
$6,456.00

$5,272.00
$248.00
($8,057.00)
($2,537.00)

$0.00
$0.00
$0.00
$0.00

$0.00
$0.00
$0.00
$0.00

$0.00
$0.00
$0.00
$0.00

$7,972.00

$0.00

$6,260.34

$6,120.00

$6,120.00

$49,730.00
$18,585.00
$31,145.00

$49,022.00
$29,262.00
$19,760.00

$102,252.19
$52,169.49
$50,082.71

$99,960.00
$51,000.00
$48,960.00

$99,960.00
$51,000.00
$48,960.00

($1,547.00)
$7,175.00
24.24%
$22,423.00
$0.78

($9,059.00)
$482.00
4.50%
$10,219.00
$0.36

$0.00
$12,520.68
25.00%
$37,562.03
$1.31

$0.00
$12,240.00
25.00%
$36,720.00
$1.28

$0.00
$12,240.00
25.00%
$36,720.00
$1.28

$12,664.55
$0.44

$13,598.59
$0.47

$32,866.78
$1.14

$32,130.00
$1.12

$32,130.00
$1.12

FY2018

FY2019

10,200
$40.00
###

10,200
$40.00
###

$6,120.00

$6,120.00

$6,120.00

$6,120.00

$0.00

$0.00

$414,120.00
$408,000.00

$414,120.00
$408,000.00

Notes
Note 1 Price Per Ton
2014
Tons
Coal Sales
Price/Ton
2013
Tons
Coal Sales
Price/Ton
2012
Tons
Coal Sales
Price/Ton
2011
Tons
Coal Sales
Price/Ton
Note 2 Reserve Table - Controlled Tons (in millions)

$285,600.00
###
###

$285,600.00
###
###

$51,000.00
$6,120.00

$51,000.00
$6,120.00

$22,440.00
$79,560.00

$22,440.00
$79,560.00

$48,960.00
$42,840.00

$48,960.00
$42,840.00

$48,960.00
$42,840.00

$48,960.00
$42,840.00

Annual Capacity
Carlisle (Assigned)
Ace in the Hole (Assigned)
Oaktown 1 (Assigned)
Oaktown 2 (Assigned)**
War Eagle (Unassigned)
Bulldog (unassigned)
Total

Note 3 Hallador sells coal to Duke Energy, Hoosier En

Period
2015
2016
2017
2018
2019
2020-2024

$12,240.00

$12,240.00

$12,240.00
25.00%

$12,240.00
25.00%

$36,720.00
$30,600.00
$32,130.00

$36,720.00
$30,600.00
$32,130.00

Forecast Pricing
2015 Assumptions
2016-2019 Assumptions

Note 4 MSHA Reimbursements: Certain coal contracts allo

2012:$4.2 million was related to costs incurred in 2
2013: $3.7 million was related to costs incurred in 2
2014: Need to submit for 2012 but due to Vectran a

Note 5 Liability Extinguishment: During 2013 2Qtr compan

Note 6 Total Coal Sales+Coal Storage Fees+Miscellaneous
28,776.00
28,776.00

28,776.00
28,776.00

$1.28
$1.06

$1.28
$1.06

$1.28
$1.06

$1.28
$1.06

70.00%
5.50%
12.50%
1.50%
1.50%
25.00%

70.00%
5.50%
12.50%
1.50%
1.50%
25.00%

Note 7 COGS
2014
COGS
Cogs/Ton
2013
COGS
Cogs/Ton
2012
COGS
Cogs/Ton
2011
Cost/Ton
Cogs/Ton
Note 8 Gross Profit Margin Per Ton of Coal Excluding Other
2014
Total Margin
Margin/Ton
2013
Total Margin
Margin/Ton

FY2018
$408,000.00
0.00%

FY2019
$408,000.00
0.00%

$285,600.00
$22,440.00

$285,600.00
$22,440.00

2012
Total Margin
Margin/Ton
2012

$6,120.00
$0.00
$93,840.00

$6,120.00
$0.00
$93,840.00

Total Margin
Margin/Ton
Note 9 Post acquistion closing adjustment

$0.00
$0.00
$0.00
$0.00

$0.00
$0.00
$0.00
$0.00

$6,120.00

$6,120.00

$99,960.00
$51,000.00
$48,960.00

$99,960.00
$51,000.00
$48,960.00

$0.00
$12,240.00
25.00%
$36,720.00
$1.28

$0.00
$12,240.00
25.00%
$36,720.00
$1.28

$32,130.00
$1.12

$32,130.00
$1.12

Note 10Interest

1st Qtr
776
$33,016.00
$42.55

2nd Qtr
847
$36,130.00
$42.66

3rd Qtr
1500
$64,764.00
$43.18

4th Qtr
2275
$99,992.00
$43.95

Total
5398
$233,902.00
$43.33

1st Qtr
840
$33,995.00
$40.47

2nd Qtr
774
$34,149.00
$44.12

3rd Qtr
817
$34,985.00
$42.82

4th Qtr
757
$34,307.00
$45.32

Total
3188
$137,436.00
$43.11

1st Qtr
701
$29,620.00
$42.25

2nd Qtr
743
$32,487.00
$43.72

3rd Qtr
810
$36,152.00
$44.63

4th Qtr
752
$33,111.00
$44.03

Total
3006
$131,370.00
$43.70

1st Qtr
816
$33,965.00
$41.62

2nd Qtr
765
$32,136.00
$42.01

3rd Qtr
805
$34,174.00
$42.45

4th Qtr
921
$37,723.00
$40.96

Total
3307
$137,998.00
$41.73

2014
Proven
43.7
2.7
30.3
47.6

2014
Probable
9.5

2014
Total
53.2
2.7
44.4
62.9

2013
Proven
33.5
3.1

ontrolled Tons (in millions)

Annual Capacity
3.3
0.5
3.2
3.2

10.2

19.6
143.9

14.1
15.3
16.2
55.1

35.8
199

27.7
19.6
83.9

l to Duke Energy, Hoosier Energy, Indianapolis Power and Light, Northern Indiance Public Services,
Priced Tones
Avg. Price/Ton Committed Tons
Total Tons
9,341
$44.68
9,341
3,369
$44.03
1,000
4,369
1,450
$44.39
1,480
2,930
2,480
2,480
2,480
2,480
10,440
10,440
14,160
$44.50
17,880
32,040

Production will be contract at contracted average and no more

Production will be contracted at average prcie per ton contracted + difference between 10.2 and cont

ents: Certain coal contracts allow for the company to pass certain costs from changes in cost of complying with
as related to costs incurred in 2010, submitted to customers in 2011, paid in 2012.
was related to costs incurred in 2011, submitted in October 2012. MD&A states they expect this timeline for reiu
mit for 2012 but due to Vectran acqusition submition was delayed until 2015

ment: During 2013 2Qtr company extinguished a $4.3 million liability that was recoreed during 2006 arising from

al Storage Fees+Miscellaneous

1st Qtr
$23,158.00
$29.84

2nd Qtr
$26,209.00
$30.94

3rd Qtr
$52,957.00
$35.30

4th Qtr
$67,367.00
$29.61

Total
$169,691.00
$31.44

1st Qtr
$23,601.00
$28.10

2nd Qtr
$22,508.00
$29.08

3rd Qtr
$23,800.00
$29.13

4th Qtr
$24,202.00
$31.97

Total
$94,111.00
$29.52

1st Qtr
$18,433.00
$26.30

2nd Qtr
$18,816.00
$25.32

3rd Qtr
$20,745.00
$25.61

4th Qtr
$21,745.00
$28.92

Total
$79,739.00
$26.53

1st Qtr
$18,708.00
$22.93

2nd Qtr
$17,902.00
$23.40

3rd Qtr
$19,355.00
$24.04

4th Qtr
$21,129.00
$22.94

Total
$77,094.00
$23.31

Per Ton of Coal Excluding Other Revenue - See Calculation below based on reported 10K information, note differ
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Total
$9,858.00
$9,921.00
$11,807.00
$32,625.00
$64,211.00
$12.70
$11.71
$7.87
$14.34
$11.90
1st Qtr
$10,394.00
$12.37

2nd Qtr
$11,641.00
$15.04

3rd Qtr
$11,185.00
$13.69

4th Qtr
$10,105.00
$13.35

Total
$43,325.00
$13.59

1st Qtr
$11,187.00
$15.96

2nd Qtr
$13,671.00
$18.40

3rd Qtr
$15,407.00
$19.02

4th Qtr
$11,366.00
$15.11

Total
$51,631.00
$17.18

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

Total

$15,257.00
$18.70

ng adjustment

$14,234.00
$18.61

$14,819.00
$18.41

$16,594.00
$18.02

$60,904.00
$18.42

2013
Probable
8.6

2013
Total
42.1
3.1

15.4
16.2
40.2

43.1
35.8
124.1

Rought Net Asset Value Based on 2014 Margins (millions of

Mine
Wash Plant
Margin
Recovery
Recovery
Per Ton
53%
81%
$11.90
Sold As Is
$11.90
49%
81%
$11.90
49%
81%
$11.90
45%

77%

$11.90
PV of Total Mine Future G

nce Public Services, Vectren and three Florida Utilites. Management believes that Florida Sales are

between 10.2 and contracted at pricing based on coal pricing model (See CoalPricing Tab)

cost of complying with MSHA or other government agencies, recognived only after customer accepts changes

ct this timeline for reiumbrusement to hold

uring 2006 arising from the purchase of Sunrise, related to a terminiated Coal Contract, no Cash Flow Impact.

nformation, note differences between calculated and presented

14 Margins (millions of tons)

Recoverable
Coal
Life
22.84
6.92
2.70
5.40
17.62
5.51
24.97
7.80

10%
10%
Discounted
2019-D
NAV (D-10%) NAV (D-10%)
$267.96
$192.57
$31.56
$29.18
$206.03
$186.73
$293.36
$186.73

12.40
11.19
$146.31
PV of Total Mine Future Gross Profit:
$945.21
Through 2019:
$595.21
s that Florida Sales are repersentative of a trend of ILB coal replacing CAPP coal.

tomer accepts changes

t, no Cash Flow Impact.

PP coal.

2
Hallador Income Statement Model
Note 2

Cash & equivalents ST & LT market. securities

Accounts receivable
Coal Inventory
Deferred tax assets
Other current assets (inc. non-trade receivables)

FY2011
37542
6689
1863
0
2600

Land, Buildings and Equitment (including Mineral Rights)

Mine Development
Accumulated DD&A
Gross Property, plant & equipment

137707
66614
-42493
161828

Acquired intangible assets (inc. Goodwill)

Other assets
Long-Term Investments
Total assets

0
6294
15430
232246

Accounts payable
Accrued expenses & def rev. (current & non-current)
Revolver
CPLTD
Income Taxes
Other current liabilities
Long term debt
Deferred Income Taxes
Other non-current liabilities
Total liabilities

10411
0
17500
0
5125
60
0
31100
7239
71435

Common stock / additional paid in capital

Treasury stock
Retained earnings / accumulated deficit
Other comprehensive income / (loss)
Total equity

86267
74685
41
160993

FY2012
FY2013
21888
8127
2342
2506
154271
71046
-58479
166838
0
11307
16199
229207
9386
0
11400
0
1660
0
0
35884
8868
67198
86861
75118
30
162009

FY2014

FY2015

FY2016

FY2017

FY2018

FY2019

Capital Structure
CPLTD
LT Debt
Total Debt

FY2011
$17,500
$0
$17,500

FY2012
$0
$11,400
$11,400

FY2013
$0
$16,000
$16,000

Common
Retained Earnings
Treasury Stock & Other
Total Equity

$86,267
$74,685
$41
$160,993

$86,861
$75,118
$30
$162,009

$88,159
$93,582
$379
$182,120

Total Capital
Debt %
Equity %

$178,493
9.80%
90.20%

$173,409
6.57%
93.43%

$198,120
8.08%
91.92%

Current Debt Details

Revolver
Total Revolver
Drawn Revolver
Interest Rate
LIBOR + 2.25%
LIBOR + 2.50%
LIBOR + 2.75%
LIBOR + 3.00%
LIBOR + 3.50%
Term Loan
Amortization
Principal
Principal Payment
Interest Rate
LIBOR + 2.25%
LIBOR + 2.50%
LIBOR + 2.75%
LIBOR + 3.00%
LIBOR + 3.50%

Covenants
$0.00 $165,000.00 $165,000.00
$0.00
$11.40
$16.00
Leverage Ratio
LIBOR
< 1X
0.16%
> 1X and <1.5X
0.16%
> 1.5X and <2X
0.16%
> 2X and <2.5X
0.16%
>2.5X
0.16%
Covenants

Leverage Ratio
< 1X
> 1X and <1.5X
> 1.5X and <2X
> 2X and <2.5X
>2.5X

LIBOR
0.16%
0.16%
0.16%
0.16%
0.16%

FY2014
$21,875
$284,470
$306,345

FY2015E

FY2016E

FY2017E

FY2018E

FY2019E

$90,507
$99,003
$365
$189,875
$496,220
61.74%
38.26%

FY2014
FY2015E
FY2016E
FY2017E
FY2018E
FY2019E
$250,000.00 $250,000.00 $250,000.00 $250,000.00 $250,000.00 $250,000.00
$145,000.00 $145,000.00 $145,000.00 $145,000.00 $145,000.00 $145,000.00
$3,494.50
$3,857.00
$4,219.50
$4,582.00
$5,307.00

$3,494.50
$3,857.00
$4,219.50
$4,582.00
$5,307.00

$3,494.50
$3,857.00
$4,219.50
$4,582.00
$5,307.00

$3,494.50
$3,857.00
$4,219.50
$4,582.00
$5,307.00

FY2014
FY2015E
FY2016E
FY2017E
10%
15%
15%
20%
$161,000.00 $144,900.00 $123,165.00 $104,690.25
$16,100.00
$21,735.00
$18,474.75
$20,938.05

FY2018E
20%
$83,752.20
$16,750.44

FY2019E
Ballon
$67,001.76
$67,001.76

$2,018.43
$2,227.81
$2,437.19
$2,646.57
$3,065.33

$1,614.74
$1,782.25
$1,949.75
$2,117.26
$2,452.26

$3,880.10
$4,282.60
$4,685.10
$5,087.60
$5,892.60

$3,494.50
$3,857.00
$4,219.50
$4,582.00
$5,307.00

$3,492.09
$3,854.34
$4,216.59
$4,578.84
$5,303.34

$3,494.50
$3,857.00
$4,219.50
$4,582.00
$5,307.00

$2,968.28
$3,276.19
$3,584.10
$3,892.01
$4,507.84

$2,523.04
$2,784.76
$3,046.49
$3,308.21
$3,831.66