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) October 19, 1994
ADDINGTON RESOURCES, INC.
(Exact Name of Registrant as Specified in Charter)
Delaware 0-16498 61-1125039
(State or Other (Commission (IRS Employer
Jurisdiction of File Number) Identification
Incorporation) No.)
1500 N. Big Run Road, Ashland, Kentucky 41102
(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number,
including area code (606) 928-3433
Former Name or Former Address, if Changed Since
Last Report: Not Applicable
INFORMATION TO BE INCLUDED IN THE REPORT
Item 5. Other Events.
On October 19, 1994, Addington Resources, Inc. issued a press
release, attached as Exhibit 1, announcing its financial results
for the third quarter ended September 30, 1994.
Item 7. Financial Statements, Pro Forma Financial Information
and Exhibits.
(a) Financial Statements of Business Acquired.
Not applicable.
(b) Pro Forma Financial Information.
Not applicable.
(c) Exhibits.
The Exhibit listed on the accompanying Exhibit Index is
filed as part of this Report and is incorporated herein by
reference.
SIGNATURES
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.
ADDINGTON RESOURCES, INC.
Date: October 20, 1994 By /s/ R. Douglas Striebel
R. Douglas Striebel
Vice President and Chief
Financial Officer
EXHIBIT INDEX
1 Press Release dated October 19, 1994
EXHIBIT 1
About: Addington Resources, Inc.
Contact: R. Douglas Striebel
606/928-3433
FOR IMMEDIATE RELEASE
Addington Resources' restructuring costs result in third quarter
loss
ASHLAND, Ky. (October 19, 1994) -- Addington Resources, Inc.
(NASDAQ National Market: ADDR) today reported lower operating
income for the quarter ending September 30, 1994.
In addition, the company posted $20.9 million in various
restructuring and other one-time charges, resulting in a net loss
of $11.8 million (75 cents per share) for the quarter. Revenues
were $38.1 million.
Pre-tax operating income, excluding restructuring and
one-time costs, was $2.7 million, or 17 cents per share, for
1994's third quarter. Operating income for the comparable 1993
period was $7.6 million.
For the year to date, pre-tax operating income, excluding
the restructuring and one-time charges, was $9.1 million, or 57
cents per share. The nine-month net loss was $7.4 million (47
cents per share). Revenues were $114.9 million.
Addington Resources President Kirby Taylor said the $20.9
million set aside in non-recurring charges and write-offs
reflected management's drive to operate fewer, yet more
profitable, businesses, and to restate certain assets to market
value.
The actions provide a foundation for growth and
profitability, complementing the sale of most coal operations to
Pittston early in 1994, he said.
"Our integrated waste management business is thriving and
expanding, and there's great potential in our contract mining and
gold operations," Taylor said. "These restructuring costs,
combined with a number of other significant management and
operating changes, will make Addington Resources a more
structured and focused company."
The write-offs and restructuring costs include:
The $6.8 million balance for a note receivable taken in
connection with the company's 1992 sale of Southern Illinois
Mining Company. The acquiring company is in bankruptcy.
Approximately $2.0 million to write off various coal assets
that won't be utilized in the remaining coal operations.
A $1.1 million investment in a recycling company and
$670,000 invested in other environmental projects.
The $3.4 million invested in developing limestone mining
operations, which the company has cancelled.
The working capital adjustment associated with the sale of
the various coal properties to Pittston was finalized during the
third quarter of 1994. The final adjustment resulted in a $6.3
million reduction in the previously reported gain on the
transaction.
The company also incurred $670,000 associated with
non-recurring one-time expenses associated with certain
management and legal expenses associated with the companies
attempts to sell the remaining coal operations.
Taylor said many concrete management and operational actions
have been taken to begin to reshape the company. Those include:
Placing the company's citrus operations in Belize and a
corporate jet for sale.
Implementing new capital expenditure, budgeting and
forecasting procedures.
Taking actions to improve the profitability of the company's
four remaining coal mines, so that management may reconsider
divesting those operations at a later date.
Realigning the manufacturing, marketing and operations
reporting responsibilities within Mining Technologies, Inc., the
business unit that oversees production of the company's patented
highwall mining machines and the licensing agreement with Joy
Technologies, Inc.
Restructuring management at Addington Environmental, Inc.,
the company's integrated waste company, to further improve the
company's landfill businesses and to turn around the unit's
hauling businesses, which currently operate at a loss.
Third quarter revenues for Addington Environmental totaled
$9.9 million, a 53 percent increase over the year-earlier period.
Operating income before write-offs and non-recurring items was
$1.7 million, 89 percent above 1993's third quarter operating
income of $.9 million. For the year-to-date, environmental
revenues were $25.7 million and operating income before
write-offs and non-recurring items was $4.3 million, compared
with $17.2 million and $2.6 million, respectively, for the first
nine months of 1993.
Coal operations, excluding MTI, generated third quarter 1994
operating income before write-offs and non-recurring items of
$1.7 million, on $25.4 million of revenues, compared with $6.6
million in operating income and $93 million in revenues during
the year-ago period.
Mining Technologies posted an operating loss of $45,000
during the quarter.
Taylor said that the restructuring actions already
implemented, and those underway, should begin to show results as
early as the first or second quarter of fiscal 1995.
"I've been on the job less than four months, have assessed
the overall situation and have acted as quickly as possible in
making major decisions. My objective is to complete the reshaping
of the company within the next 12 to 18 months," Taylor said.
Addington Resources, Inc., traded on the NASDAQ National
Market under the symbol ADDR, is an integrated waste management,
mining and mining technology company.
# # #
<TABLE>
Addington Resources, Inc.
Income Statements
<CAPTION>
For the 3 Months
Ended Sept. 30, 1994
& Sept. 30, 1993
09/30/94 09/30/93
<S> <C> <C>
Revenues
Mining Revenues $ 27,697,046 $95,060,000
Environmental Revenues 9,942,125 6,489,426
Other Income 492,152 0
Total Revenue 38,131,323 101,549,426
Costs & Expenses
Cost of Operations 30,608,408 79,582,428
Provision for Asset Write-Down 6,023,948 0
Depreciation & Amortization 2,326,042 8,603,469
Selling, General & Administration 3,123,789 5,733,006
Total Costs & Expenses 42,082,267 93,918,903
Income From Operations (3,950,944) 7,630,523
Other Income/(Expense)
Sale of Fixed Assets 61,316 (17,788)
Interest Income 34,179 95,451
Interest Expense (8,025) (4,502,982)
Sale of Subsidiary (6,275,227) 0
Other Income/(Expense) (7,980,739) 286,146
Total Other Income/(Expense) (14,168,495) (4,139,173)
Net Income Before Taxes (18,119,440) 3,491,350
Tax Provision (6,300,000) 1,000,000
Net Income (11,819,440) 2,491,350
Earnings Per Share (.75) .16
</TABLE>
<TABLE>
Addington Resources, Inc.
Income Statements
<CAPTION>
For the 9 Months
Ended Sept. 30, 1994
& Sept. 30, 1993
09/30/94 09/30/93
<S> <C> <C>
Revenues
Mining Revenues $ 88,043,568 $ 258,766,188
Environmental Revenues 25,660,287 17,213,464
Other Income 1,147,597 260,000
Total Revenue 114,851,452 276,239,652
Costs & Expenses
Cost of Operations 91,783,110 225,059,750
Provision for Asset Write-Down 6,023,948 0
Depreciation & Amortization 6,037,878 23,086,794
Selling, General & Administration 8,582,092 15,833,943
Total Costs & Expenses 112,427,028 263,980,487
Income From Operations 2,424,424 12,259,165
Other Income/(Expense)
Sale of Fixed Assets 2,729 (46,926)
Interest Income 418,494 456,890
Interest Expense (165,544) (12,412,064)
Sale of Subsidiary (6,156,728) 0
Other Income/(Expense) (8,149,824) 815,421
Total Other Income/(Expense) (14,050,874) (11,186,679)
Net Income Before Taxes (11,626,450) 1,072,486
Tax Provision (4,219,000) 296,000
Net Income (7,407,450) 776,486
Earnings Per Share (.47) .05
</TABLE>
<TABLE>
Addington Resources, Inc.
Consolidated Balance Sheet
September 30, 1994 & December 31, 1993
<CAPTION>
09/30/94 12/31/93
<S> <C> <C>
Current Assets $ 50,525,320 $ 184,076,104
Property & Equipment (Net) 154,576,787 116,390,496
Mineral Reserves (Net) 1,123,082 1,685,134
Other Assets 11,793,675 13,506,692
Total Assets $ 218,008,864 $ 315,658,426
Current Liabilities $ 42,443,749 $ 172,659,495
Other Liabilities 55,617,161 18,065,751
Stockholder's Equity 119,947,954 124,933,180
Total Liabilities &
Stockholders' Equity $ 218,008,864 $ 315,658,426
</TABLE>
<TABLE>
Addington Resources, Inc.
Income From Operations
For the 9 Months Ended
September 30, 1994
<CAPTION>
Coal Environmental HWM Joy Other Total
<S> <C> <C> <C> <C> <C> <C>
9 Months
Ended 09/30/94
Revenues
Mining Revenues $ 83,101,634 $ 0 $ 4,941,935 $ 0 $ 0 $ 88,043,568
Environmental
Revenues 0 25,660,287 0 0 0 25,660,287
Other Income 0 0 0 944,874 202,723 1,147,597
Total Revenue $83,101,634 $25,660,287 $4,941,935 $944,874 $202,723 $114,851,452
Costs & Expenses
Cost of
Operations $72,090,669 $14,274,475 $4,392,953 $0 $1,025,014 $91,783,100
Provision for
Asset Write-
Down 1,999,793 670,533 0 0 3,353,623 6,023,948
Depreciation
&
Amortization 1,579,068 3,456,200 500,447 0 502,163 6,037,878
Selling,
General &
Administration 2,492,475 3,840,411 578,211 0 1,670,994 8,582,092
Total Costs &
Expenses $78,162,005 $22,241,619 $5,471,611 $0 $6,551,794 $112,427,028
Income From
Operations $4,939,629 $3,418,668 $(529,676) $944,874 $(6,349,071) $2,424,424
Other Income/
(Expense)
Sale of Fixed
Assets $92,024 $0 $(80,398) $0 $(8,896) $2,729
Interest Income 13,244 397 0 0 404,853 418,494
Interest Expense (221,005) 0 (1,171) 0 56,632 (165,544)
Sale of
Subsidiary 0 0 0 0 (6,156,728) (6,156,728)
Other Income/
(Expense) (253,935) (1,111,330) 0 0 (6,784,559) (8,149,824)
Total Other
Income/(Expense) (369,672) (1,110,934) (81,569) 0 (12,488,698) (14,050,874)
Net Income
Before Taxes $4,569,957 $2,307,734 $(611,246) $944,874 (18,837,769) $(11,626,450)
</TABLE>
<TABLE>
Addington Resources, Inc.
Income From Operations
For the 3 Months Ended
September 30, 1994
<CAPTION>
Coal Mining Environmental HWM Joy Other Total
<S> <C> <C> <C> <C> <C> <C>
3 Months
Ended 09/30/94
Revenues
Mining Revenues $ 25,358,289 $0 $ 2,338,758 $ 0 $ 0 $27,697,046
Environmental
Revenues 0 9,942,125 0 0 0 $ 9,942,125
Other Income 0 0 0 371,512 120,640 492,152
Total Revenue $25,358,289 $9,942,125 $2,338,758 $371,512 $120,640 $38,131,323
Costs & Expenses
Cost of
Operations $22,408,317 $5,583,475 $2,140,174 $0 $476,522 $30,608,488
Provision for
Asset Write-
Down 1,999,793 670,533 0 0 3,353,623 6,023,948
Depreciation &
Amortization 557,656 1,285,125 295,302 0 187,958 2,326,042
Selling, General
& Administration 737,895 1,651,527 319,421 0 414,946 3,123,789
Total Costs &
Expenses 25,703,662 9,190,660 2,754,897 0 4,433,049 42,082,267
Income from
Operations (345,373) 751,465 (416,139) 371,512 (4,312,409) (3,950,944)
Other Income/(Expense)
Sale of Fixed Assets 99,763 0 0 0 (38,447) 61,316
Interest Income 5,029 (3,678) 0 0 32,829 34,179
Interest Expense (109,008) 43,543 808 0 56,632 (8,025)
Sale of Subsidiary 0 0 0 0 (6,275,227) (6,275,227)
Other Income/
(Expense) (56,047) (1,144,133) 0 0 (6,780,559) (7,980,739)
Total Other Income/
(Expense) (60,263) (1,104,268) 808 0 (13,004,771)(14,168,495)
Net Income Before
Taxes (405,637) (352,804) (415,331) 371,512 (17,317,180)(18,119,440)
</TABLE>
