Second Quarter Highlights:
– Net income increases by 142% over second quarter 2009, excluding non-routine transactions
– Operating margins increase by 26% compared to the same period last year
– Metallurgical shipments triple versus second quarter 2009
– ICG ADDCAR delivers its first overseas highwall mining system to India International Coal Group, Inc. today reported its results for the second quarter of 2010.
– Adjusted EBITDA was $44.8 million for the second quarter of 2010
compared to $52.2 million for the second quarter of 2009. Second
quarter 2010 Adjusted EBITDA was reduced by a $10.0 million charge due
to a negotiated early termination of a thermal coal sales agreement.
This termination enables ICG to sell approximately 400,000 additional
tons as premium high-volatile metallurgical coal at significantly higher
prices during 2010 and 2011. Second quarter 2009 results included a $7.7
million gain related to the termination of a below-market coal supply
agreement. Exclusive of these items, Adjusted EBITDA would have been
$54.8 million in the second quarter of 2010 and $44.5 million for the
same period in 2009, a 23% increase.
– Net income was $4.5 million, or $0.02 per share on a diluted basis, for
the second quarter of 2010 compared to net income of $10.4 million, or
$0.07 per share on a diluted basis, for the second quarter of 2009. Net
income for the second quarter of 2010 also included a $6.1 million
pre-tax loss on extinguishment of debt related to the Company’s capital
restructuring. Excluding the $10.0 million contract buyout and the $6.1
million loss on extinguishment of debt, pro forma net income in the
second quarter of 2010 would have been $13.5 million, or $0.07 per share
on a diluted basis. Excluding the $7.7 million gain related to the 2009
contract termination, pro forma net income in the second quarter of 2009
would have been $5.6 million, or $0.04 per share on a diluted basis.
– Margin per ton sold increased 26% to $14.28 in the second quarter of
2010 compared to $11.32 for the same period last year, primarily due to
higher price realization.
– Revenues increased to $300.4 million for the second quarter of 2010
compared to $277.8 million for the second quarter of 2009, primarily due
to increased coal sales revenues.
“Our operating performance was solid throughout the second quarter,” said Ben Hatfield, President and CEO of ICG. “The improved margins, compared to the second quarter of 2009, were driven primarily by our moves to sell more metallurgical tons with higher pricing and our continued focus on effective cost control.”
Hatfield continued, “We’re seeing a steady improvement in thermal coal pricing, as utility coal inventories have fallen from record highs in November 2009 and are slowly approaching normalized levels. Above-normal summer temperatures are expected to further reduce coal stockpiles and provide more support for thermal prices. Although demand for metallurgical coal slowed in the second half of the quarter, we believe this plateau is temporary and not an indication of an extended change in the market outlook.”
Six-Month Results
Revenues for the first six months of 2010 totaled $589.0 million compared to $582.8 million for the same period in 2009. The Company reported Adjusted EBITDA of $91.7 million in the first six months of 2010 compared to $96.7 million in the first six months of 2009. First-half Adjusted EBITDA was reduced in 2010 by a $10.0 million contract buyout and increased in 2009 by a $7.7 million contract termination gain. Excluding these transactions, first-half Adjusted EBITDA would have been $101.7 million in 2010 and $89.0 million in 2009.
Net loss for the first half of 2010 was $4.4 million, or $0.02 per share on a diluted basis, versus net income of $14.1 million, or $0.09 per share on a diluted basis, for the same period a year ago. Excluding the $10.0 million contract buyout and the $28.1 million loss on the extinguishment of debt, pro forma net income in the first six months of 2010 would have been $19.7 million, or $0.10 per share on a diluted basis. Excluding the $7.7 million gain related to the contract termination, pro forma net income in the first six months of 2009 would have been $9.3 million, or $0.06 per share on a diluted basis.
Sales, Production and Reserves
ICG sold 4.1 million tons of coal during the second quarter of 2010 compared to 4.2 million tons during the second quarter of 2009. Production totaled 4.0 million tons in the second quarter of 2010 versus 4.2 million tons in the same period of 2009. Metallurgical shipments of 622,000 tons represented a 421,000-ton increase over the second quarter of the prior year.
As of June 30, 2010, ICG controlled approximately 1.1 billion tons of coal reserves, located primarily in Illinois, Kentucky, West Virginia, Maryland and Virginia. Additionally, the Company controlled approximately 431 million tons of non-reserve coal deposits, which may be classified as reserves in the future as additional drilling and geotechnical work is completed.
Operational and Other Updates
– Construction resumed in June at the Tygart No. 1 deep mine complex in
Taylor County, West Virginia. Initial production of high-volatile
metallurgical and high-quality thermal coal is expected in late 2011
with longwall production scheduled to begin in early 2014. At full
output, the Tygart No. 1 mine is expected to produce 3.5 million tons
per year.
– As previously discussed, during the second quarter of 2010, ICG reached
a $10.0 million contract termination settlement with a utility customer.
This transaction allows the Company to market approximately 400,000 tons
of coal as premium high-volatile metallurgical coal at significantly
higher margins. Approximately 80% of these tons have already been
committed for sale at more favorable prices.
– ICG ADDCAR Systems completed the sale of a new highwall mining system to
a customer in India. This sale marks the first delivery of ADDCAR’s
unique highwall mining system outside of North America. The system
includes ADDCAR’s latest steep-dip mining technologies.
– In March and April 2010, in connection with tender offers and consent
solicitations, the Company repurchased approximately $169.1 million
aggregate principal amount of its 10.25% Senior Notes due 2014 and
$114.5 million aggregate principal amount of its 9.0% Convertible Senior
Notes due 2012 as part of a capital restructuring. The Company incurred
a $6.1 million loss related to these transactions in the second quarter
of 2010. In July 2010, the Company redeemed the remaining $5.9 million
of the 10.25% Senior Notes at a redemption price of 105.125% of the
principal amount, plus accrued and unpaid interest. The Company used
cash on hand to fund the redemption.
– Various ICG mining operations received prestigious awards in May for
outstanding safety performance during 2009 from the West Virginia State
Council of the Joseph A. Holmes Association and District 3 of the Mine
Safety and Health Administration (MSHA). ICG’s Wolf Run Mining
operations received two Holmes and two MSHA awards; ICG Eastern
operations received two Holmes awards; and Vindex Energy operations
received one Holmes and one MSHA award. Additionally, ICG ADDCAR’s
Bridger HWM operation was recognized by the State of Wyoming for working
all of 2009 without a lost-time accident.
Market Outlook and Committed Sales
Despite the uncertain near-term global economic outlook, thermal coal fundamentals appear to be improving due to declining utility inventories and increasing electricity consumption. The Company expects metallurgical coal pricing to strengthen going forward as the outlook for world steel demand continues to improve.
For 2010, committed and priced sales are approximately 16.2 million tons, or 97% of planned shipments, at an average price of $65.25 per ton, excluding freight and handling expenses. The uncommitted tonnage for 2010 includes approximately 0.4 million tons that are expected to be marketed as metallurgical coal.
For 2011, committed and priced sales are approximately 8.8 million tons, or 52.3% of planned shipments, at an average price of $61.37 per ton, excluding freight and handling expenses. The uncommitted tonnage for 2011 includes approximately 2.3 million tons of metallurgical coal.
Liquidity and Debt
As of June 30, 2010, the Company had $205.3 million in cash and has $33.3 million in borrowing capacity available under its new credit agreement.
Debt outstanding as of June 30, 2010 totaled $365.3 million, net of a $36.3 million discount, consisting primarily of $115.0 million aggregate principal amount of newly issued 4.0% Convertible Senior Notes and $200.0 million aggregate principal amount of newly issued 9.125% Senior Secured Second-Priority Notes.
Outlook
The Company has updated its guidance to reflect modifications to its production mix and the global economic conditions affecting the coal market:
– For 2010, the Company expects to sell between 16.6 million and 16.8
million tons of coal, including 2.7 million to 2.8 million tons of
metallurgical coal. The average selling price is projected to be $66.25
to $67.25 per ton, with an average cost of $51.75 to $52.75 per ton,
excluding selling, general and administrative expenses. The Company
expects coal production to be between 15.8 million and 16.0 million
tons.
– Adjusted EBITDA, or earnings before deducting interest, income taxes,
depreciation, depletion, amortization, loss on extinguishment of debt
and noncontrolling interest, is expected to be in the range of $200
million to $220 million in 2010.
– The Company’s expectation for average coal pricing by region for 2010 is
as follows:
Region 2010 Forecast
—— ————-
Central Appalachia $72.75 – $73.75
Northern Appalachia $69.25 – $70.25
Illinois Basin $36.75 – $37.00
Average $66.25 – $67.25
===============
– The Company anticipates 2010 capital expenditures of between $105.0
million and $115.0 million.
For 2011, the Company expects to produce and sell between 16.5 million and 17.5 million tons of coal, including 3.1 million to 3.2 million tons of metallurgical coal. The average selling price is projected to be $72.00 to $77.00 per ton.
General Information
ICG is a leading producer of coal in Northern and Central Appalachia and the Illinois Basin. The Company has 13 active mining complexes, of which 12 are located in Northern and Central Appalachia and one in Central Illinois. ICG’s mining operations and reserves are strategically located to serve utility, metallurgical and industrial customers domestically and internationally.
Forward-Looking Statements
– Statements in this press release that are not historical facts are
forward-looking statements within the “safe harbor” provision of the
Private Securities Litigation Reform Act of 1995 and may involve a
number of risks and uncertainties. We have used the words “anticipate,”
“believe,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,”
“predict,” “project” and similar terms and phrases, including references
to assumptions, to identify forward-looking statements. These
forward-looking statements are made based on expectations and beliefs
concerning future events affecting us and are subject to various risks,
uncertainties and factors relating to our operations and business
environment, all of which are difficult to predict and many of which are
beyond our control, that could cause our actual results to differ
materially from those matters expressed in or implied by these
forward-looking statements. The following factors are among those that
may cause actual results to differ materially from our forward-looking
statements: market demand for coal, electricity and steel; availability
of qualified workers; future economic or capital market conditions;
weather conditions or catastrophic weather-related damage; our
production capabilities; consummation of financing, acquisition or
disposition transactions and the effect thereof on our business; a
significant number of conversions of our convertible senior notes prior
to maturity; our plans and objectives for future operations and
expansion or consolidation; our relationships with, and other conditions
affecting, our customers; availability and costs of key supplies or
commodities, such as diesel fuel, steel, explosives and tires;
availability and costs of capital equipment; prices of fuels which
compete with or impact coal usage, such as oil and natural gas; timing
of reductions or increases in customer coal inventories; long-term coal
supply arrangements; reductions and/or deferrals of purchases by major
customers; risks in or related to coal mining operations, including
risks related to third-party suppliers and carriers operating at our
mines or complexes; unexpected maintenance and equipment failure;
adoption by Appalachian states of EPA guidance regarding stringent water
quality-based limitations in CWA Section 402 wastewater discharge
permits and CWA Section 404 dredge and fill permits; environmental,
safety and other laws and regulations, including those directly
affecting our coal mining and production, and those affecting our
customers’ coal usage; ability to obtain and maintain all necessary
governmental permits and authorizations; competition among coal and
other energy producers in the United States and internationally;
railroad, barge, trucking and other transportation availability,
performance and costs; employee benefits costs and labor relations
issues; replacement of our reserves; our assumptions concerning
economically recoverable coal reserve estimates; availability and costs
of credit, surety bonds and letters of credit; title defects or loss of
leasehold interests in our properties which could result in
unanticipated costs or inability to mine these properties; the impact of
the mine explosion at a competitor’s mine on federal and state
authorities’ decisions to enact laws and regulations that result in more
frequent mine inspections, stricter enforcement practices and enhanced
reporting requirements; future legislation and changes in regulations or
governmental policies or changes in interpretations or enforcement
thereof, including with respect to safety enhancements and environmental
initiatives relating to global warming or climate change; impairment of
the value of our long-lived and deferred tax assets; our liquidity,
including our ability to adhere to financial covenants related to our
borrowing arrangements; adequacy and sufficiency of our internal
controls; and legal and administrative proceedings, settlements,
investigations and claims, including those related to citations and
orders issued by regulatory authorities, and the availability of related
insurance coverage.
– You should keep in mind that any forward-looking statement made by us in
this press release or elsewhere speaks only as of the date on which the
statements were made. See also the “Risk Factors” in our 2009 Annual
Report on Form 10-K and subsequent filings with the Securities and
Exchange Commission, all of which are currently available on our website
at www.intlcoal.com. New risks and uncertainties arise from time to
time, and it is impossible for us to predict these events or how they
may affect us or our anticipated results. We have no duty to, and do not
intend to, update or revise the forward-looking statements in this press
release, except as may be required by law. In light of these risks and
uncertainties, you should keep in mind that any forward-looking
statement made in this press release might not occur.
INTERNATIONAL COAL GROUP, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2010 AND 2009
(in thousands, except share and per share amounts)
Three months ended
June 30,
——–
2010 2009
—- —-
REVENUES:
Coal sales revenues $270,714 $254,677
Freight and handling revenues 9,006 6,041
Other revenues 20,720 17,079
—— ——
Total revenues 300,440 277,797
COSTS AND EXPENSES:
Cost of coal sales 211,927 207,324
Freight and handling costs 9,006 6,041
Cost of other revenues 26,400 6,630
Depreciation, depletion and
amortization 26,135 26,035
Selling, general and administrative 8,335 8,670
Gain on sale of assets, net (34) (3,108)
— ——
Total costs and expenses 281,769 251,592
——- ——-
Income from operations 18,671 26,205
INTEREST AND OTHER INCOME (EXPENSE)
Loss on extinguishment of debt (6,098) -
Interest expense, net (10,015) (13,214)
——- ——-
Total interest and other income
(expense) (16,113) (13,214)
——- ——-
Income (loss) before income taxes 2,558 12,991
INCOME TAX (EXPENSE) BENEFIT 1,924 (2,613)
—– ——
Net income (loss) 4,482 10,378
Net (income) loss attributable to – 4
noncontrolling interest — —
Net income (loss) attributable to
International Coal Group, Inc. $4,482 $10,382
====== =======
Other Data:
Adjusted EBITDA (a) $44,806 $52,240
Earnings per share:
Basic $0.02 $0.07
Diluted $0.02 $0.07
Weighted-average common shares
outstanding:
Basic 202,484,814 152,832,797
Diluted 203,932,265 154,672,255
Six months ended
June 30,
——–
2010 2009
—- —-
REVENUES:
Coal sales revenues $541,204 $528,493
Freight and handling revenues 18,383 14,675
Other revenues 29,447 39,595
—— ——
Total revenues 589,034 582,763
COSTS AND EXPENSES:
Cost of coal sales 431,992 439,289
Freight and handling costs 18,383 14,675
Cost of other revenues 33,581 15,966
Depreciation, depletion and
amortization 52,532 52,298
Selling, general and administrative 16,920 19,281
Gain on sale of assets, net (3,515) (3,186)
—— ——
Total costs and expenses 549,893 538,323
——- ——-
Income from operations 39,141 44,440
INTEREST AND OTHER INCOME (EXPENSE)
Loss on extinguishment of debt (28,085) -
Interest expense, net (23,315) (26,232)
——- ——-
Total interest and other income
(expense) (51,400) (26,232)
——- ——-
Income (loss) before income taxes (12,259) 18,208
INCOME TAX (EXPENSE) BENEFIT 7,889 (4,108)
—– ——
Net income (loss) (4,370) 14,100
Net (income) loss attributable to – (25)
noncontrolling interest — —
Net income (loss) attributable to
International Coal Group, Inc. $(4,370) $14,075
======= =======
Other Data:
Adjusted EBITDA (a) $91,673 $96,738
Earnings per share:
Basic $(0.02) $0.09
Diluted $(0.02) $0.09
Weighted-average common shares
outstanding:
Basic 191,992,083 152,803,420
Diluted 191,992,083 153,983,725
(a) This press release includes a non-GAAP financial measure within
the meaning of applicable SEC rules and regulations. Adjusted
EBITDA is a non-GAAP financial measure used by management to gauge
operating performance. We define Adjusted EBITDA as net
income or loss attributable to International Coal Group, Inc. before
deducting interest, income taxes, depreciation, depletion,
amortization,
loss on extinguishment of debt and noncontrolling interest. Adjusted
EBITDA is not, and should not be used as, a substitute for operating
income, net income and cash flow as determined in accordance with
GAAP. We present Adjusted EBITDA because we consider it an
important supplemental measure of our performance and believe it is
frequently used by securities analysts, investors and other
interested parties in the evaluation of companies in our industry,
substantially all of which present EBITDA or Adjusted EBITDA when
reporting their results. We also use Adjusted EBITDA as our executive
compensation plan bases incentive compensation payments on
our Adjusted EBITDA performance measured against budgets. Our ABL
Loan Facility uses Adjusted EBITDA (with additional
adjustments) to measure our compliance with covenants, such as fixed
charge ratio. EBITDA or Adjusted EBITDA is also widely used
by us and others in our industry to evaluate and price potential
acquisition candidates. Adjusted EBITDA has limitations as an
analytical
tool, and you should not consider it in isolation or as a substitute
for analysis of our results as reported under GAAP. Some of these
limitations are that Adjusted EBITDA does not reflect our cash
expenditures, or future requirements, for capital expenditures or
contractual commitments; changes in, or cash requirements for, our
working capital needs; or interest expense, or the cash
requirements necessary to service interest or principal payments, on
our debts. Although depreciation, depletion and amortization are
non-cash charges, the assets being depreciated, depleted and
amortized will often have to be replaced in the future. Adjusted
EBITDA
does not reflect any cash requirements for such replacements. Other
companies in our industry may calculate EBITDA or Adjusted
EBITDA differently than we do, limiting its usefulness as a
comparative measure. A reconciliation of Adjusted EBITDA to GAAP net
income or loss attributable to International Coal Group, Inc. appears
at the end of this press release.
INTERNATIONAL COAL GROUP, INC. AND SUBSIDIARIES
UNAUDITED Condensed Consolidated Balance Sheets
AS OF JUNE 30, 2010 AND DECEMBER 31, 2009
(in thousands)
December
June 30, 31,
2010 2009
—- —-
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $205,310 $92,641
Accounts receivable, net 92,259 80,291
Inventories, net 76,132 82,037
Deferred income taxes 15,548 15,906
Prepaid expenses and other 18,118 17,734
—— ——
Total current assets 407,367 288,609
PROPERTY, PLANT, EQUIPMENT AND MINE
DEVELOPMENT, net 1,022,984 1,038,200
DEBT ISSUANCE COSTS, net 13,371 7,634
ADVANCE ROYALTIES, net 17,046 18,025
OTHER NON-CURRENT ASSETS 6,554 15,492
—– ——
Total assets $1,467,322 $1,367,960
========== ==========
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable $61,324 $63,582
Short-term debt 2,334 2,166
Current portion of long-term debt
and capital lease 24,947 17,794
Current portion of reclamation and
mine closure costs 9,376 9,390
Current portion of employee benefits 4,043 3,973
Accrued expenses and other 69,455 74,803
—— ——
Total current liabilities 171,479 171,708
LONG-TERM DEBT AND CAPITAL LEASE 337,969 366,515
RECLAMATION AND MINE CLOSURE COSTS 66,651 65,601
EMPLOYEE BENEFITS 76,330 63,767
DEFERRED INCOME TAXES 56,382 57,399
BELOW-MARKET COAL SUPPLY AGREEMENTS 28,398 29,939
OTHER NON-CURRENT LIABILITIES 3,158 3,797
—– —–
Total liabilities 740,367 758,726
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS’ EQUITY:
Common stock 2,038 1,728
Treasury stock (216) (14)
Additional paid-in capital 857,925 732,124
Accumulated other comprehensive
income (loss) (2,770) 1,048
Retained deficit (130,083) (125,713)
——– ——–
Total International Coal Group, Inc.
stockholders’ equity 726,894 609,173
Noncontrolling interest 61 61
Total stockholders’ equity 726,955 609,234
——- ——-
Total liabilities and stockholders’
equity $1,467,322 $1,367,960
========== ==========
INTERNATIONAL COAL GROUP, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2010 AND 2009
(in thousands)
Six months ended
June 30,
——–
2010
—-
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $(4,370)
Adjustments to reconcile net income (loss) to net
cash from operating activities:
Depreciation, depletion and amortization 52,532
Loss on extinguishment of debt 28,085
Amortization and write-off of deferred finance
costs and debt discount 4,753
Amortization of accumulated employee benefit
obligations 206
Compensation expense on share based awards 1,756
Gain on sale of assets, net (3,515)
Provision for bad debt (79)
Deferred income taxes (11,051)
Changes in assets and liabilities:
Accounts receivable (11,889)
Inventories 5,885
Prepaid expenses and other (384)
Other non-current assets 1,053
Accounts payable 6,069
Accrued expenses and other (5,228)
Reclamation and mine closure costs 191
Other liabilities 5,672
—–
Net cash from operating activities 69,686
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from the sale of assets 3,785
Additions to property, plant, equipment and mine
development (41,190)
Withdrawals (deposits) of restricted cash 8,792
Net cash from investing activities (28,613)
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings on short-term debt 2,388
Repayments on short-term debt (2,220)
Borrowings on long-term debt and capital leases -
Repayments on long-term debt and capital leases (9,435)
Proceeds from convertible notes offering 115,000
Proceeds from senior notes offering 198,596
Proceeds from common stock offering 102,453
Repurchase of senior notes (182,777)
Repurchase of convertible notes (137,342)
Purchases of treasury stock (202)
Proceeds from stock options exercised 10
Debt issuance costs (14,875)
——-
Net cash from financing activities 71,596
——
NET CHANGE IN CASH AND CASH EQUIVALENTS 112,669
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 92,641
——
CASH AND CASH EQUIVALENTS, END OF PERIOD $205,310
========
Six months ended
June 30,
——–
2009
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $14,100
Adjustments to reconcile net income (loss) to net
cash from operating activities:
Depreciation, depletion and amortization 52,298
Loss on extinguishment of debt -
Amortization and write-off of deferred finance
costs and debt discount 3,378
Amortization of accumulated employee benefit
obligations (52)
Compensation expense on share based awards 2,233
Gain on sale of assets, net (3,186)
Provision for bad debt (110)
Deferred income taxes 3,632
Changes in assets and liabilities:
Accounts receivable (9,308)
Inventories (22,812)
Prepaid expenses and other 16,663
Other non-current assets (630)
Accounts payable (10,784)
Accrued expenses and other (5,058)
Reclamation and mine closure costs 176
Other liabilities (1,438)
——
Net cash from operating activities 39,102
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from the sale of assets 3,066
Additions to property, plant, equipment and mine
development (35,750)
Withdrawals (deposits) of restricted cash (163)
Net cash from investing activities (32,847)
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings on short-term debt -
Repayments on short-term debt (3,578)
Borrowings on long-term debt and capital leases 9,086
Repayments on long-term debt and capital leases (8,755)
Proceeds from convertible notes offering -
Proceeds from senior notes offering -
Proceeds from common stock offering -
Repurchase of senior notes -
Repurchase of convertible notes -
Purchases of treasury stock (14)
Proceeds from stock options exercised -
Debt issuance costs (609)
—-
Net cash from financing activities (3,870)
——
NET CHANGE IN CASH AND CASH EQUIVALENTS 2,385
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 63,930
——
CASH AND CASH EQUIVALENTS, END OF PERIOD $66,315
=======
INTERNATIONAL COAL GROUP, INC. AND SUBSIDIARIES
RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2010 AND 2009 (Unaudited)
(in thousands)
Three months ended Six months ended
June 30, June 30,
——– ——–
2010 2009 2010 2009
—- —- —- —-
Net income (loss)
attributable to
International Coal
Group, Inc. $4,482 $10,382 $(4,370) $14,075
Depreciation, depletion
and amortization 26,135 26,035 52,532 52,298
Interest expense, net 10,015 13,214 23,315 26,232
Income tax expense
(benefit) (1,924) 2,613 (7,889) 4,108
Loss on extinguishment
of debt 6,098 – 28,085 -
Noncontrolling interest – (4) – 25
— — — —
Adjusted EBITDA $44,806 $52,240 $91,673 $96,738
======= ======= ======= =======
RECONCILIATION OF NET INCOME (LOSS) TO PRO FORMA NET INCOME (LOSS)
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2010 AND 2009 (Unaudited)
(in thousands)
Three months ended Six months ended
June 30, June 30,
——– ——–
2010 2009 2010 2009
—- —- —- —-
Net income (loss)
attributable to
International Coal
Group, Inc. $4,482 $10,382 $(4,370) $14,075
Loss on contract buyout 10,000 – 10,000 -
Loss on extinguishment of
debt 6,098 – 28,085 -
Gain on contract buyout – (7,721) – (7,721)
Income tax expense
(benefit) (7,047) 2,926 (13,973) 2,926
—— —– ——- —–
Pro forma net income
(loss) attributable to
International Coal
Group, Inc. $13,533 $5,587 $19,742 $9,280
======= ====== ======= ======
OPERATING STATISTICS
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2010 AND 2009 (Unaudited)
(in thousands, except per ton amounts)
Central Northern Illinois Purchased Total
Appalachia Appalachia Basin Coal and —–
———- ———- —– Ancillary
———
For the three months
ended June 30, 2010:
———————
Tons sold 2,319 1,049 586 161 4,115
Coal sales revenues $169,316 $69,823 $21,840 $9,735 $270,714
Cost of coal sales $133,274 $54,199 $16,993 $7,461 $211,927
Coal sales revenue
per ton (b) $73.04 $66.57 $37.26 $60.32 $65.79
Cost of coal sales
per ton (b) $57.49 $51.67 $28.99 $46.23 $51.51
For the three months
ended June 30, 2009:
———————
Tons sold 2,480 947 546 207 4,180
Coal sales revenues $175,571 $48,685 $17,701 $12,720 $254,677
Cost of coal sales $140,142 $44,745 $14,274 $8,163 $207,324
Coal sales revenue
per ton (b) $70.81 $51.36 $32.41 $61.55 $60.92
Cost of coal sales
per ton (b) $56.52 $47.21 $26.13 $39.50 $49.60
For the six months
ended June 30, 2010:
———————
Tons sold 4,792 2,118 1,237 291 8,438
Coal sales revenues $348,280 $130,188 $45,376 $17,360 $541,204
Cost of coal sales $273,540 $107,870 $36,401 $14,181 $431,992
Coal sales revenue
per ton (b) $72.69 $61.46 $36.67 $59.73 $64.14
Cost of coal sales
per ton (b) $57.09 $50.92 $29.42 $48.79 $51.20
For the six months
ended June 30, 2009:
———————
Tons sold 5,249 2,055 1,136 420 8,860
Coal sales revenues $359,693 $108,936 $36,424 $23,440 $528,493
Cost of coal sales $295,973 $97,123 $30,487 $15,706 $439,289
Coal sales revenue
per ton (b) $68.53 $53.01 $32.06 $55.81 $59.65
Cost of coal sales
per ton (b) $56.39 $47.26 $26.83 $37.40 $49.58
(b) “Coal sales revenue per ton” and “Cost of coal sales per ton” are
calculated as Coal sales revenues or Cost of coal sales,
respectively, divided by Tons sold. Although Coal sales revenue per
ton and Cost of coal sales per ton are not measures of
performance calculated in accordance with GAAP, management believes
that they are useful to an investor in evaluating
performance because they are widely used in the coal industry as a
measure to evaluate a company’s sales performance or
control over its costs. Coal sales revenue per ton and Cost of coal
sales per ton should not be considered in isolation or as
substitutes for measures of performance in accordance with GAAP. In
addition, because Coal sales revenue per ton and Cost
of coal sales per ton are not calculated identically by all
companies, ICG’s presentation may not be comparable to other
similarly
titled measures of other companies.
International Coal Group, Inc.
CONTACT: Ira Gamm, Vice President – Investor and Public Relations,+1-304-760-2619
Web site: http://www.intlcoal.com/
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- US China Mining Group, Inc. Reports Fourth Quarter and Full Year 2010 Financial Results
- US China Mining Group Announces Second Quarter 2010 Results
- International Coal Group (NYSE: ICO): Coal sales revenues increased to $243.4 million in the fourth quarter of 2010
