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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): March 29, 2000
ANKER COAL GROUP, INC.
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(Exact Name Of Registrant As Specified in Its Charter)
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Delaware 333-39643 52-1990183
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(State or other jurisdiction of incorporation or organization) (Commission File No.) (I.R.S. Employer Identification No.)
2708 Cranberry Square
Morgantown, West Virginia 26508
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(Address Of Principal Executive Offices) (Zip Code)
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Registrant's telephone number, including area code: (304) 594-1616
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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
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ITEM 5. OTHER EVENTS
Anker Coal Group, Inc. issued the attached press release on March 29,
2000.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits
99.1 Press Release dated March 29, 2000
1
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SIGNATURE
Pursuant to the requirements of the Securities 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
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Bruce Sparks
President
Date: March 29, 2000
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FOR IMMEDIATE RELEASE
March 29, 2000
Anker Coal Group Announces 1999 Results
Morgantown, WV - Anker Coal Group, Inc. (the "Company") today reported
adjusted EBITDA of $19.1 million for the year ended December 31, 1999, an
increase of 120% from adjusted EBITDA of $8.7 million in 1998. Bruce Sparks,
President of the Company, said "this substantial increase in adjusted EBITDA for
1999 is primarily due to the cost savings which the Company has been able to
achieve through the use of contract miners at its deep mine operations." He
added that "we are proud to report that the business plan implemented throughout
1999 to improve our operating performance has been successful."
The cost per ton of operations and selling expenses decreased 13.6% from
$22.43 per ton in 1998 to $19.37 per ton in 1999. This decrease resulted from
the Company's use of contract miners at its deep mines and the idling of the
Company's higher cost mining operations.
The Company also reported revenues of $230.6 million for 1999, a decrease
of 20.9% from revenues of $291.4 million in 1998. The decline in revenues was
primarily attributable to planned reductions in coal production from the
Company's operations in Webster County and Raleigh County, West Virginia.
Gross profit for 1999 totaled $2.8 million, an increase of $6.0 million
from the gross loss of $3.2 million in the prior year. Mr. Sparks noted that
"the improvement in gross profit demonstrates the impact of the revised business
plan and management's commitment to make the changes necessary to remain
competitive in a challenging coal industry environment."
Adjusted EBITDA represents earnings before interest, taxes, depreciation,
depletion, amortization, non-cash stock compensation and non-recurring related
expenses, loss on impairment of investment and restructuring charges, life
insurance proceeds, financial restructuring charges and extraordinary items.
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. Gross profit represents coal sales and related
revenue less cost of operations, selling expenses, depreciation, depletion and
amortization.
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.
