<PAGE> 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): November 16, 1999
ANKER COAL GROUP, INC.
(Exact Name Of Registrant As Specified in Its Charter)
<TABLE>
<S> <C> <C>
Delaware 333-39643 52-1990183
(State or other jurisdiction of incorporation or organization) (Commission File (I.R.S. Employer Identification No.)
Number)
2708 Cranberry Square 26508
Morgantown, West Virginia (Zip Code)
(Address Of Principal Executive Offices)
</TABLE>
Registrant's telephone number, including area code: (304) 594-1616
<PAGE> 2
ANKER COAL GROUP, INC.
FORM 8-K
TABLE OF CONTENTS
ITEM 5. OTHER EVENTS ..................................................... 1
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS ................................ 1
SIGNATURE PAGE ............................................................ 2
EXHIBIT INDEX ............................................................. 3
<PAGE> 3
ITEM 5. OTHER EVENTS
Anker Coal Group, Inc. issued the attached press release on November
16, 1999.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits
99.1 Press Release dated November 16, 1999
1
<PAGE> 4
SIGNATURE
Pursuant to the requirements of the Securities and Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
ANKER COAL GROUP, INC.
/s/ Bruce Sparks
----------------------
Bruce Sparks
President
Date: November 16, 1999
2
<PAGE> 1
FOR IMMEDIATE RELEASE
November 16, 1999
Anker Coal Announces Third Quarter Adjusted EBITDA
Morgantown, WV - Anker Coal Group, Inc. (the "Company") today reported
adjusted EBITDA of $5.2 and $13.4 million for the three and nine months ended
September 30, 1999, compared to adjusted EBITDA of $2.3 and $4.7 million for the
same periods in 1998, increases of 126% and 184%, respectively. Bruce Sparks,
President of the Company, said "these significant increases in adjusted EBITDA
are the result of cost savings which the Company has achieved through the
restructuring of its mining operations." Mr. Sparks added "that with the
completion of the private financial restructuring transactions on October 28,
1999, management can now focus its efforts on continuing to improve the
Company's operating and financial performance and implementing the Company's
future growth."
Adjusted EBITDA represents net income before interest, taxes,
depreciation, depletion, amortization, non-recurring financial restructuring
charges, impairment on investment, and operational restructuring charges. The
Company has attached the consolidated statements of operations for the three and
nine month periods ended September 30, 1999 and 1998 to this release, including
the calculation of adjusted EBITDA.
This release contains statements that constitute forward-looking
statements within the meaning of the Private Securities Litigation Reform Act of
1995. Such forward-looking statements are not guarantees of future performance
and involve risks and uncertainties. Actual results may differ materially from
those described or implied herein as a result of various factors, many of which
are beyond the Company's control.
Anker Coal Group, Inc. and its subsidiaries produce and sell coal used
principally for electric generation and steel production in the eastern United
States.
Contact Bruce Sparks, President, Anker Coal Group, Inc. at (304)
594-1616.
<PAGE> 2
ANKER COAL GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
1999 1998 1999 1998
(unaudited) (unaudited) (unaudited) (unaudited)
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
REVENUES
Coal sales and related revenue $ 60,070 $ 78,217 $174,293 $226,111
OPERATING EXPENSES
Cost of operations and selling expenses 53,971 73,512 157,419 214,443
Depreciation, depletion and amortization 4,591 4,792 13,430 13,009
General and administrative 2,836 2,679 6,781 7,767
Loss on impairment and restructuring 1,065 5,517 4,526 7,346
------- ------- -------- --------
Total costs and expenses 62,463 86,500 182,156 242,565
------- ------- -------- --------
Operating loss (2,393) (8,283) (7,863) (16,454)
Interest, net of $386 capitalized for the nine months
September 30, 1998 (3,711) (3,301) (10,911) (9,421)
Other (expense) income, net 1,158 273 2,579 821
------- ------- -------- ---------
Loss before income taxes (4,946) (11,311) (16,195) (25,054)
Income tax benefit -- (3,167) (200) (7,015)
------- ------- -------- ---------
Net loss (4,946) (8,144) (15,995) (18,039)
Mandatorily redeemable preferred stock dividends 352 334 1,055 1,004
Mandatorily redeemable preferred stock accretion 150 150 450 450
Common stock available for repurchase accretion 142 -- 421 --
------- ------- -------- ---------
Net loss available to common stockholders $(5,590) $(8,628) $(17,921) $ (19,493)
======= ======= ======== =========
EBITDA $ 3,356 $(3,218) $ 8,146 $ (2,624)
Add: Impairment and restructuring charges 1,065 5,517 4,526 7,346
Financial restructuring fees* 756 -- 756 --
------- ------- -------- ---------
Adjusted EBITDA** $ 5,177 $ 2,299 $ 13,428 $ 4,722
======= ======= ======== =========
</TABLE>
* This adjustment to EBITDA represents non-recurring charges.
** Adjusted EBITDA is not a measure of financial performance under
generally accepted accounting principles and should not be considered in
isolation or as a substitute for measures of performance prepared in accordance
with generally accepted accounting principles.
