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Exhibit 99.1
FOR IMMEDIATE RELEASE
November 10, 2000
Anker Coal Group Announces Third Quarter and Year-To-Date Results
Morgantown, WV - Anker Coal Group, Inc. (the "Company") today reported
its financial results for the third quarter and for the nine month period ended
September 30, 2000.
RESULTS FOR THIRD QUARTER OF 2000
The Company reported adjusted EBITDA of $5.4 million for the quarter
ended September 30, 2000, an increase of 2% from adjusted EBITDA of $5.3 million
in the same period of 1999.
The cost per ton of operations and selling expenses for
company-produced and brokered coal for the quarter ended September 30, 2000, was
$24.93 compared to $24.84 per ton for the quarter ended September 30, 1999, an
increase of less than 1%.
The Company reported revenues of $58.4 million for the third quarter of
2000, a decrease of 3% from the $60.0 million of revenues for the same period of
1999. The decrease in revenues was primarily attributable to the lower coal
sales volume and was partially offset by increased sales volume in the Company's
ash and waste fuel operations.
Gross profit for the third quarter of 2000 was $1.5 million compared to
gross profit of $1.4 million for the third quarter of 1999. Net loss declined
$2.1 million, or 38%, from a net loss of $5.6 million in the third quarter of
1999 to a net loss of $3.5 million in the current quarter. Bruce Sparks,
President of the Company, noted that "although the Company recorded a third
quarter net loss, the fact that we have maintained our gross profit levels and
reduced our net loss, despite slightly lower revenue, is evidence that the
Company's revised business plan continues to have a positive impact on the
Company's financial performance."
RESULTS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2000
The Company also reported adjusted EBITDA of $17.7 million for the nine
months ended September 30, 2000, as compared to adjusted EBITDA of $13.9 million
for the same period of 1999, an increase of $3.8 million or 27%.
The cost per ton of operations and selling expenses for
company-produced and brokered coal was $24.66 for the nine months ended
September 30, 2000, compared to $25.00 per ton for the same period of 1999, a
decrease of 1%.
The Company also reported revenues for the first nine months of 2000 of
$170.7 million, a decrease of 2% from the $173.7 million of revenues for the
first nine months of 1999. The decline in revenues was primarily attributable to
lower sales volume of company-produced coal. This was partially offset by
increased sales volume in both the Company's brokered coal operations and its
ash and waste fuel operations.
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Gross profit for the nine months ended September 30, 2000, was $6.2
million compared to $2.9 million for the same period of 1999, an increase of
$3.3 million, or 114%. Net loss declined $8.3 million, or 46%, from a net loss
of $17.9 million for the nine month period ended September 30, 1999, to a net
loss of $9.6 million for the nine month period ended September 30, 2000.
The Company will hold a conference call on November 20, 2000 to review
its third quarter results. The conference will take place at 11:00 a.m. eastern
time. Within the U.S., interested parties may call 1 (800) 289-0437. Outside the
U.S., interested parties must dial 1 (913) 981-5508. The Company asks listeners
to dial in at least five minutes prior to the start of the call.
Adjusted EBITDA represents earnings before interest, taxes,
depreciation, depletion, amortization, non-cash stock compensation, unusual
charges, loss on impairment of investment, 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 and selling expenses and depreciation, depletion and amortization.
This release may contain 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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