National Coal Corp. (Nasdaq: NCOC):
- 2009 revenues from continuing
operations totaled approximately $88.0 million, up 35.2% from $65.1
million in 2008
- Tons of coal sold during 2009
increased approximately 20% to 1.2 million tons, up from 1.0
million tons sold during the year-ago period
- 2009 net loss from continuing
operations decreased 30.5% from $25.5 million in 2008 to $17.7
million in 2009, and adjusted EBITDA for the year increased to $0.1
million, from ($6.9) million in 2008
- Revenues for fourth quarter 2009
totaled approximately $23.3 million, up 71.1% from $13.6 million in
the fourth quarter 2008.
- Production from continuing
operations decreased 17.7% from 1.0 million tons in 2008 to 0.8
million tons in 2009
National Coal Corp. (Nasdaq: NCOC), a Central and Southern
Appalachian coal producer, reports that for the year ended December
31, 2009, it achieved total revenues from continuing operations of
$88.0 million based primarily on the sale of 1.2 million tons of
coal. In the same prior-year period, National Coal generated
revenues from continuing operations of $65.1 million based
primarily on the sale of 1.0 million tons of coal.
For the three months ended December 31, 2009, total revenues
from continuing operations of $23.3 million were based primarily on
the sale of 0.3 million tons of coal at an average net sales price
of $74.74 per ton. Revenues from continuing operations for the same
period in 2008 totaled $13.6 million and were based primarily on
the sale of approximately 0.2 million tons of coal at an average
net sales price of $75.00 per ton. The Company had a net loss for
the quarter of $4.3 million versus a net loss of $7.9 million in
the year-ago quarter.
For the twelve months ended December 31, 2009, National Coal
reports a net loss from continuing operations of $17.7 million or
$0.52 per diluted share compared to a net loss of $25.5 million or
$0.83 per diluted share for the twelve months ended December 31,
2008. During 2009, the Company’s continuing operations produced 0.8
million tons of coal and sold 1.2 million tons of coal; this
compares to 1.0 million tons produced and 1.0 million tons sold
during 2008. Also for the year ended December 31, 2009, National
Coal had an Adjusted Earnings Before Interest, Taxes, and
Depreciation and Amortization (“Adjusted EBITDA”) of $0.1 million,
compared to an Adjusted EBITDA of ($6.9) million for the year ended
December 31, 2008.
Liquidity
At December 31, 2009, the Company had cash and cash equivalents
of approximately $1.2 million and negative working capital of
approximately $54.8 million. Cash flows provided by (used in)
continuing operations were approximately $38,000, $(9.6) million
and $(9.1) million for the years ended December 31, 2009, 2008 and
2007, respectively.
During the first quarter of 2010, National Coal experienced a
significant reduction in cash receipts following the suspension of
coal shipments to a major customer due to freezing weather in the
Southeastern United States, the resulting impact on cash has been
financed primarily by the Company’s vendors, resulting in a
significant increase in accounts payable since the beginning of the
year. The deterioration in National Coal’s financial position has
caused Centaurus Energy Master Fund, LP, the lender under the
Company’s short-term revolving credit facility and the holder of
$30.3 million (or 72.1%) of its 10.5% Notes due 2010, to assert
that National Coal is insolvent, which assertion the Company
disputes. The Company nonetheless is in default under its $5
million short-term revolving credit agreement as of the date of
this report. Under the terms of this facility, the annual financial
statements that we file with the SEC must be reported on without a
“going concern” qualification from our independent certified public
accountants. Because the accompanying accountants’ report for the
year ended December 31, 2009, does contain a going concern
explanatory paragraph, the Company is in default of this covenant
as of the date this report is filed. While the Company has not
obtained an agreement from Centaurus to forbear from exercising its
available remedies, Centaurus has indicated that it will not
immediately seek to accelerate the amounts due under the revolving
credit agreement so long as the Company continues to pursue a
transaction that pays down this indebtedness in the near term.
Additionally, the Company has concluded that it will not be able
to generate from operations the amount of cash necessary to pay in
December 2010 the amounts due on its 10.5% Notes due 2010 and its
short-term revolving credit facility, the combined outstanding
principal balance of which was $45.0 million at December 31, 2009.
Accordingly, the Company’s immediate focus is to improve its
operating liquidity in the short-term by reducing accounts payable
to historical levels, and to pay off its secured debt by its
maturity date. The Company has explored and continues to explore a
number of options to achieve both of these objectives, including
selling assets, refinancing its debt, exchanging its equity for its
debt, selling the Company, merging with another company, or some
combination of these options. National Coal is presently
negotiating with a third party to sell a portion of its assets to
improve its working capital, including reducing amounts due
Centaurus under the $5 million short-term credit facility, which
will address the default under this facility and the immediate
insolvency issues raised by Centaurus. If the Company is
unsuccessful in this and other attempts to remedy its insolvency
issues, it will consider whether to pursue these and other
potential transactions after filing for protection under the
federal bankruptcy laws.
“We are working with Centaurus to find a near term solution to
our default under the credit agreement and to address our liquidity
issues,” explains Daniel A. Roling, President and CEO at National
Coal Corp. “We are in negotiation with a third party to sell a
portion of our assets to improve working capital, including
reducing amounts owed to Centaurus.”
2009 Review
During 2009, National Coal idled one of its higher cost
underground mines in order to take advantage of purchased coal
prices that were lower than its mining cost at that mine. As a
result of the mine closure, the Company’s cost per ton sold during
2009 compared to 2008 from its continuing operations declined by
$10.44 due primarily to decreases in labor of $3.26 per ton sold,
freight and fuel costs of $5.38 per ton sold and equipment usage
costs of $1.80 per ton sold.
To offset the production shortfall from the mine closure,
National Coal purchased 355,459 tons of coal at an average price of
$60.65 in 2009 compared to 31,084 tons in 2008 at an average price
of $47.58 per ton leading to an increase in the average cost per
ton sold of $16.85 in 2009.
National Coal invested approximately $6.2 million in equipment
and mine development in its continuing operations during the year
ended December 31, 2009. During 2010, management expects to incur
approximately $3.6 million to maintain existing assets.
In June 2009, National Coal of Alabama, Inc. defaulted on its
$60 million credit agreement entered into October 2007 with TCW
Asset Management Company and various lenders. The lenders
foreclosed on the outstanding capital stock of National Coal of
Alabama. However, no creditor of National Coal of Alabama,
including the lenders under the $60 million credit agreement, has a
lien or encumbrance on assets of National Coal Corp. or its other
subsidiaries.
As of June 30, 2009, National Coal of Alabama accounted for
approximately 55% of National Coal Corp.’s debt and liabilities,
approximately 39% of its consolidated revenues for the six months
then ended, and about 16% of its December 2008 total reserves. The
Company acquired National Coal of Alabama in October 2007, using a
combination of debt and equity to finance the acquisition and fund
the subsidiary’s operations.
2010 Outlook
The Company’s overall outlook for 2010 is one of cautious
optimism. Electricity demand has declined two consecutive years --
2008 and 2009. This is the first time in well over 60 years
electricity generation has declined in the United States of America
for two consecutive years. The significance is that 93% of coal
consumed in the United States, is consumed generating electricity.
This decline has resulted in a decline in coal burn of 113 million
tons.
The impact of this situation has been clearly felt by National
Coal and its stakeholders. Looking forward, but mindful of the
combined obstacles we faced in 2009, and the impact of a major
customer exercising its rights of force majeure in early 2010, the
outlook is challenging. However, the Company does have significant
tons committed at strong prices and a plan to meet its near-term
liquidity needs. Committed sales for 2010 are 0.9 million tons at
an average contracted price of $79.62 per ton, for 2011 are 0.8
million tons at an average contracted selling price of $76.03 per
ton, and for 2012 are 0.5 million tons at an average contracted
selling price of $73.70 per ton.
Roling says, “Aside from the significant trouble we are facing
in restructuring our debt, our production goals and efforts to
reduce costs continue. We have been affected by the fluctuating
market and economy, as have many other steam coal producers.”
National Coal’s production goals for 2010, 2011, and 2012 will
reflect anticipated market demand as well as our restructured
capacity. We continue to anticipate having the ability to produce
more than our contracted tonnage.
About National Coal Corp.
Headquartered in Knoxville, Tenn., National Coal Corp., through
its wholly owned subsidiary, National Coal Corporation, is engaged
in coal mining in East Tennessee. Currently, National Coal employs
about 220 people. National Coal sells steam coal to electric
utilities and industrial companies in the Southeastern United
States. For more information and to sign-up for instant news alerts
visit www.nationalcoal.com.
Information About Forward Looking Statements
This release contains “forward-looking statements” that include
information relating to future events and future financial and
operating performance. Examples of forward looking-statements
include the Company’s efforts to address the deterioration in its
financial position, including its efforts to sell assets.
Forward-looking statements should not be read as a guarantee of
future performance or results, and will not necessarily be accurate
indications of the times at, or by which, that performance or those
results will be achieved. Forward-looking statements are based on
information available at the time they are made and/or management's
good faith belief as of that time with respect to future events,
and are subject to risks and uncertainties that could cause actual
performance or results to differ materially from those expressed in
or suggested by the forward-looking statements. Important factors
that could cause these differences include, but are not limited to
the risks more fully described in the Company's filings with the
Securities and Exchange Commission including the Company's most
recently filed Annual Report on Form 10-K and Quarterly Reports on
Form 10-Q, which should be read in conjunction herewith for a
further discussion of important factors that could cause actual
results to differ materially from those in the forward-looking
statements. Forward-looking statements speak only as of the date
they are made. You should not put undue reliance on any
forward-looking statements. We assume no obligation to update
forward-looking statements to reflect actual results, changes in
assumptions or changes in other factors affecting forward-looking
information, except to the extent required by applicable securities
laws. If we do update one or more forward-looking statements, no
inference should be drawn that we will make additional updates with
respect to those or other forward-looking statements.
NATIONAL COAL CORP.
CALCULATION OF EBITDA
(Unaudited)
(Dollars in thousands)
EBITDA is defined as net loss plus (i) other (income) expense,
net, (ii) interest expense, (iii) depreciation, depletion,
accretion and amortization minus (iv) interest income. We present
EBITDA to enhance understanding of our operating performance. We
use EBITDA as criterion for evaluating our performance relative to
that of our peers, including measuring our cost effectiveness and
return on capital, assessing our allocations of resources and
production efficiencies and making compensation decisions. We
believe that EBITDA is an operating performance measure that
provides investors and analysts with a measure of our operating
performance and permits them to evaluate our cost effectiveness and
production efficiencies relative to competitors. However, EBITDA is
not a measurement of financial performance under accounting
principles generally accepted in the United States of America
(“GAAP”) and may not be comparable to other similarly titled
measures of other companies. EBITDA should not be considered as an
alternative to cash flows from operating activities, determined in
accordance with GAAP, as indicators of cash flows. The following
reconciles our net loss to EBITDA:
Three Months Ended Twelve Months Ended
December 31, December 31, 2009
2008 2009 2008 Net loss
(4,314,614 ) (7,933,612 ) (19,214,548 ) (34,892,950 )
Other (income) expense, net (91,561 ) 30,352 (155,504 ) 1,861,879
Interest income 52,195 (157,643 ) (170,086 ) (730,102 ) Interest
expense 1,841,609 1,651,212 6,879,517 7,277,975 Depreciation,
depletion, amortization and accretion 2,396,377
1,811,869 9,925,328 8,847,711
EBITDA (115,994 ) (4,597,822 ) (2,735,293 ) (17,635,487 ) Stock
compensation expense 252,933 313,836 1,379,893 1,313,948
Discontinued operations, net of tax - 1,231,920
1,485,157 9,385,238 Adjusted
EBITDA 136,939 (3,052,066 ) 129,757
(6,936,301 )
National Coal Corp. Consolidated
Balance Sheets December 31, 2009
December 31, 2008 Assets Current Assets: Cash
and cash equivalents $ 1,185,725 $ 3,908,469 Accounts receivable,
net 366,680 474,351 Inventory 1,403,972 2,957,654 Prepaid and other
current assets 1,550,919 1,282,777 Current assets of discontinued
operations - 9,751,877 Total Current Assets 4,507,296
18,375,128 Property, plant, equipment and mine development,
net 40,298,450 43,674,758 Deferred financing costs 890,048
1,238,267 Restricted cash 6,211,637 11,338,137 Other non-current
assets 906,097 1,562,901 Long term assets of discontinued
operations - 71,620,026 Total Assets $ 52,813,528
$ 147,809,217
Liabilities and
Stockholders' (Deficit) Equity Current Liabilities: Accounts
payable $ 11,551,663 $ 6,188,085 Accrued expenses 1,065,355 880,632
Borrowings under short-term line of credit 3,000,000 - Current
maturities of long term debt 42,372,933 2,336,191 Current
installments of obligations under capital leases 1,237,358
1,886,251 Current portion of asset retirement obligations 98,528
145,282 Deferred revenue - 1,241,840 Current liabilities of
discontinued operations - 11,735,695 Total Current
Liabilities 59,325,837 24,413,976 Long - term debt, less
current maturities, net of discount 270,291 41,892,645 Obligations
under capital leases, less current installments 140,958 1,314,188
Asset retirement obligations, less current portion 3,790,212
3,763,720 Deferred revenue 1,000,000 1,303,655 Other non-current
liabilities 589,139 2,138,235 Long-term liabilities of discontinued
operations - 67,492,063 Total Liabilities 65,116,437
142,318,482 Stockholders' (Deficit) Equity:
Common Stock, $.0001 par value; 80 million shares authorized;
34,313,889 and 34,184,824 shares issued and outstanding at December
31, 2009 and December 31, 2008, respectively 3,431 3,418 Additional
paid in capital 116,191,838 114,770,947 Accumulated deficit
(128,498,178 ) (109,283,630 ) Total Stockholders' (Deficit) Equity
(12,302,909 ) 5,490,735 Total Liabilities and Stockholders'
(Deficit) Equity $ 52,813,528 $ 147,809,217
See Accompanying Notes to Consolidated Financial Statements.
National Coal Corp. Consolidated Statements of
Operations Year Ended December
31, 2009 2008 2007 Revenues:
Coal sales $ 85,598,350 $ 61,827,845 $ 79,038,521 Other revenues
2,437,132 3,223,401 837,278
Total revenues 88,035,482 65,051,246
79,875,799 Operating expenses: Cost of coal sales
(exclusive of depreciation, depletion, amortization and accretion)
80,323,782 62,847,621 77,064,753 Cost of coal services (exclusive
of depreciation, depletion, amortization and accretion) 2,325,490
2,818,582 - Depreciation, depletion, amortization and accretion
9,925,328 8,847,711 14,661,153 General and administrative 6,636,346
7,635,292 6,969,932 Total
operating expenses 99,210,946 82,149,206
98,695,838 Loss from continuing operations
(11,175,464 ) (17,097,960 ) (18,820,039 )
Other income (expense): Interest expense (6,879,517 ) (7,277,975 )
(8,990,387 ) Interest income 170,086 730,102 1,179,458 Other
155,504 (1,861,879 ) 1,030,932 Other
income (expense) (6,553,927 ) (8,409,752 ) (6,779,997 )
Loss from continuing operations before
income taxes (17,729,391 ) (25,507,712 ) (25,600,036 )
Income tax benefit - - -
Loss from continuing operations (17,729,391 ) (25,507,712 )
(25,600,036 ) Loss from discontinued operations, net of
taxes (1,485,157 ) (9,385,238 ) (164,327 ) Net
loss (19,214,548 ) (34,892,950 ) (25,764,363 ) Preferred
stock dividend - (130,188 ) (398,891 ) Preferred stock deemed
dividend - (593,563 ) (4,058,358 ) Net
loss attributable to common shareholders $ (19,214,548 ) $
(35,616,701 ) $ (30,221,612 ) Loss per common share
from continuing operations - basic and diluted $ (0.52 ) $
(0.83 ) $ (1.45 ) Loss per common share from
discontinued operations - basic and diluted $ (0.04 ) $
(0.30 ) $ (0.01 ) Loss per common share - basic and
diluted $ (0.56 ) $ (1.13 ) $ (1.46 ) Weighted
average common shares outstanding 34,004,575
31,525,271 20,680,015 See
Accompanying Notes to Consolidated Financial Statements.
National Coal Corp. Condensed Consolidated Statements of
Cash Flows Year Ended December 31,
2009 2008 2007
Operating Activities Net loss $ (19,214,548 ) $ (34,892,950
) $ (25,764,363 )
Adjustments to reconcile net loss
to net cash provided by (used in) operating activities:
Loss from discontinued operations, net of tax 1,485,155 9,385,238
164,327 Depreciation, depletion, amortization and accretion
9,925,328 8,847,711 14,661,153 Amortization of deferred financing
costs 1,012,412 490,796 906,488 Amortization of debt discount
680,824 735,728 621,220 Gain (loss) on disposal of assets 159,431
(108,427 ) (1,059,786 ) Loss on sale of Straight Creek properties -
365,025 - Loss on extinguishment of debt - 1,676,202 50,720
Settlement of asset retirement obligations (134,618 ) (205,525 )
(430,655 ) Stock option expense 1,379,893 1,313,948 1,436,996
Issuance of stock in lieu of payment for services - - 531,500
Changes in operating assets and liabilities: Accounts receivable
107,671 1,741,883 1,310,523 Inventory 1,164,099 (725,497 ) 66,140
Prepaid and other current assets 273,437 429,788 627,866 Other non
- current assets 744,805 18,605 96,811 Accounts payable and accrued
expenses 5,548,301 (1,749,041 ) (2,884,636 ) Deferred revenue
(1,545,495 ) 1,241,840 521,379 Other non - current liabilities
(1,549,096 ) 1,883,469 55,337 Net cash
flows used in operating activities from continuing operations
37,599 (9,551,207 ) (9,088,980 ) Net cash flows provided by (used
in) operating activities from discontinued operations 3,676,903
5,356,468 (82,065 ) Net cash flows
provided by (used in) operating activities 3,714,502 (4,194,739 )
(9,171,045 )
Investing Activities Capital
expenditures (5,833,661 ) (8,442,724 ) (4,359,850 ) Proceeds from
sale of Straight Creek properties - 10,638,570 - Proceeds from sale
of equipment and mine development, net - - 2,375,935 Decrease in
restricted cash 5,126,500 5,173,672 734,942 Additions to prepaid
royalties (88,000 ) (493,819 ) (6,164 ) Net cash
(used in) provided by investing activities from continuing
operations (795,161 ) 6,875,699 (1,255,137 ) Net cash used in
investing activities from discontinued operations (2,153,052 )
(2,947,254 ) (69,530,391 ) Net cash (used in)
provided by investing activities (2,948,213 ) 3,928,445 (70,785,528
)
Financing Activities Proceeds from issuance of
common and preferred stock - 10,843,798 35,798,648 Proceeds from
stock option exercises - 1,037,125 - Proceeds from issuance of
notes - - 441,077 Proceeds under short-term line of credit
5,000,000 - 2,000,000 Repayments of debt (4,842,867 ) (13,951,676 )
(5,518,091 ) Repayments of obligations under capital leases
(2,029,010 ) (175,761 ) (740,608 ) Payments for deferred financing
costs (793,305 ) (204,113 ) (109,333 ) Payment of deferred
dividends - (244,405 ) - Dividends paid - - (239,458 ) Payment of
cash to induce conversion of preferred stock - - (1,702,153 ) Other
- 32,080 - Net cash flows (used
in) provided by financing activities from continuing operations
(2,665,182 ) (2,662,952 ) 29,930,082 Net cash flows (used in)
provided by financing activities from discontinued operations
(823,851 ) (1,985,301 ) 56,668,622 Net cash
flows (used in) provided by financing activities (3,489,033 )
(4,648,253 ) 86,598,704 Net (decrease) increase in cash and
cash equivalents (2,722,744 ) (4,914,547 ) 6,642,131 Cash and cash
equivalents at beginning of year 3,908,469 8,823,016
2,180,885 Cash and cash equivalents at end of
year $ 1,185,725 $ 3,908,469 $
8,823,016 Supplemental Cash Flow Information Cash
paid during the year for interest $ 5,778,149 $ 14,142,123 $
9,381,725 Non-cash investing and financing activities from
continued operations: Preferred stock effective dividends $ - $
593,563 $ - 10.5% Senior Secured Notes exchanged for common stock -
13,158,958 - Financed equipment acquisitions 77,700 3,574,173
4,914,339 Equipment acquired through obligations under capital
leases 336,000 3,325,500 248,900 Asset retirement obligations
incurred, acquired or recosted 695,120 2,067,097 2,671,909 Issuance
of warrants - - 1,374,676 Common stock issued for mineral rights -
5,000,000 - Interest and fees paid in-kind or financed 2,100,000 -
- See Accompanying Notes to Condensed Consolidated Financial
Statements.
Grafico Azioni National Coal Corp (MM) (NASDAQ:NCOC)
Storico
Da Mag 2024 a Giu 2024
Grafico Azioni National Coal Corp (MM) (NASDAQ:NCOC)
Storico
Da Giu 2023 a Giu 2024