- Earnings per Share of $1.03 Compared with Loss per Share of ($0.78) in Q-1 2008
- Adjusted EBITDA of $53.2 Million Compared with $7.7 Million in Q-1 2008
- As a Result of New Contracts Signed in 2008, CAPP Average Sales Price of $90.91 per ton Compared with $52.56 per ton in Q-1 2008
- Amended Existing CAPP Utility Contract and Priced an Additional 1,500,000 Tons of CAPP Utility Coal at $70.00 per ton
- Continuing to Adjust Coal Production to Soft Market Conditions
- Conference Call Slides Posted to Company Website
RICHMOND, Va., May 1 /PRNewswire-FirstCall/ -- James River Coal Company (Nasdaq: JRCC), a producer of steam and industrial-grade coal, today announced that it had net income of $28.2 million or $1.03 per fully diluted share for the first quarter of 2009. This is compared to a net loss of $16.7 million or $.78 per fully diluted share for the first quarter of 2008.
Peter T. Socha, Chairman and Chief Executive Officer commented: 'This was an excellent quarter for James River Coal Company. We have begun shipping on the new sales contracts that we signed in 2008. In the operations area, the mines had a very good quarter in both CAPP and the Illinois Basin. In the contracting area, we worked with one of our long-time utility customers to amend an existing contract to address important needs of both parties. In the transportation area, we were very pleased with our train service this quarter. We had a great start to 2009.'
QUARTERLY RESULTS
The following tables show selected operating results for the quarter ended March 31, 2009 compared to the quarter ended March 31, 2008 (in 000's except per ton amounts).
Total Results Three Months Ended March 31,
2009 2008
Total Per Ton Total Per Ton
Company and contractor
production (tons) 2,866 2,802
Coal purchased from
other sources (tons) 37 133
Total coal available
to ship (tons) 2,902 2,935
Coal shipments (tons) 2,631 2,922
Coal sales revenue $192,121 73.02 $138,188 47.29
Cost of coal sold 132,707 50.44 125,730 43.03
Depreciation, depletion,
& amortization 14,473 5.50 17,290 5.92
Gross profit (loss) 44,941 17.08 (4,832) (1.65)
Selling, general &
administrative 9,287 3.53 7,334 2.51
Adjusted EBITDA (1) $53,194 20.22 $7,655 2.62
(1) Adjusted EBITDA is defined under 'Reconciliation of Non-GAAP
Measures' in this release. Adjusted EBITDA is used to determine
compliance with financial covenants in our senior secured credit
facilities.
Segment Results Three Months Ended March 31,
2009 2008
CAPP Midwest CAPP Midwest
Company and contractor
production (tons) 2,041 825 2,087 715
Coal purchased from other
sources (tons) 37 - 133 -
Total coal available
to ship (tons) 2,077 825 2,220 715
Coal shipments (tons) 1,844 787 2,197 725
Coal sales revenue $167,635 24,486 $115,479 22,709
Average sales price
per ton 90.91 31.11 52.56 31.32
Cost of coal sold $111,484 21,223 $104,110 21,620
Cost of coal sold
per ton 60.46 26.97 47.39 29.82
Cost Bridge Q-4 2008 vs. Q-1 2009
CAPP Midwest
Beginning cash costs (Q-4 2008) $56.15 28.59
Royalties and sales related costs 4.23 -
Variable costs (diesel, explosives, etc.) - (1.07)
Other 0.08 (0.55)
Ending cash costs (Q-1 2009) $60.46 26.97
C.K. Lane, Senior Vice President and Chief Operating Officer commented: 'Both our CAPP and Midwest operations had an excellent quarter. The first quarter safety results continue to be very positive. The tight labor market continues to improve. We are seeing both an increase in experienced applicants and reduced turnover. I am very pleased with both our CAPP and Midwest cash costs.'
Mr. Lane continued: 'In response to the weak coal markets, we are continuing to adjust our production through small changes to our work schedules for the remainder of 2009. Our strong contract position for the next several years and flexible mine operations give us the option to decline low-priced offers and wait for the market to properly reflect our costs and the value of our coal.'
LIQUIDITY
As of March 31, 2009, the Company had available liquidity of $25.8 million calculated as follows (in millions):
Cash and Cash Equivalents $9.8
Availability under the Revolver 35.0
Drawn under the Revolver (9.0)
Minimum Liquidity Reserve (1) (10.0)
Available Liquidity $25.8
(1) In accordance with our Loan Facilities the Minimum Liquidity Reserve
of $10.0 million will no longer apply when the Company's Adjusted
EBITDA exceeds $75.0 million for any twelve month period ended on
the last day of the quarter.
As of March 31, 2009 the Company's actual twelve month Adjusted EBITDA was $63.1 million compared to the covenant requirement of $54.1 million.
