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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): May 12, 2000
ANKER COAL GROUP, INC.
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(Exact Name Of Registrant As Specified in Its Charter)
Delaware 333-39643 52-1990183
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(State or other jurisdiction of (Commission File (I.R.S. Employer
incorporation or organization) Number) Identification No.)
2708 Cranberry Square
Morgantown, West Virginia 26508
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(Address Of Principal Executive Offices) (Zip Code)
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 May 11, 2000.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits
99.1 Press Release dated May 11, 2000
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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: May 12, 2000
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Exhibit 99.1
FOR IMMEDIATE RELEASE
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May 11, 2000
Anker Coal Group Announces First Quarter 2000 Results
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Morgantown, WV - Anker Coal Group, Inc. (the "Company") today reported
adjusted EBITDA of $6.7 million for the quarter ended March 31, 2000, an
increase of 26% from adjusted EBITDA of $5.3 million in the same period of 1999.
Bruce Sparks, President of the Company, said "the continued improvement in
adjusted EBITDA for 2000 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 implementation of
the Company's business plan continues to improve our operating performance."
The cost per ton of operations and selling expenses was $20.28 per ton
in the first quarter of 2000 compared to $19.71 per ton in the same period of
1999. This increase resulted from a decline in the shipments of commission coal
in the first quarter of 2000 as compared to the same quarter in 1999. Because
there are no costs of operation attributed to commission coal, the decline in
the tonnage of commission coal shipped caused the total per ton cost of coal to
increase. Adjusting for the tonnage of commission coal shipped in both quarters,
the per ton cost of operations and selling expenses for company-produced and
brokered coal for the quarter ended March 31, 2000 was $0.42 less than such cost
for the quarter ended March 31, 1999, a decrease of 1.7%.
The Company also reported revenues of $57.8 million for the first
quarter of 2000, an increase of 1.4% from revenues of $57.0 million in the same
period of 1999. The increase in revenues was primarily attributable to
additional revenues generated from the Company's brokered coal operations. These
additional revenues were partially offset by lower revenues from the
company-produced and commission coal operations.
Gross profit for the first quarter of 2000 totaled $3.0 million, an
increase of $0.8 million, or 36%, from gross profit of $2.2 million in the first
quarter of 1999. Net loss declined $0.3 million, or 12%, from a net loss of $2.5
million in the first quarter of 1999 to a net loss of $2.2 million for the same
period in 2000. Mr. Sparks noted that "although the Company recorded a net loss
in the first quarter, the improvement in gross profit and the decline in net
loss continues to provide evidence that the revised business plan and
management's commitment to make the changes necessary to remain competitive in a
challenging coal industry environment are having a positive impact on the
Company's financial performance."
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.
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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.
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