International Coal Group Reports Fourth Quarter and Full Year 2009 Results

Jan 28, 2010, 16:05 ET from International Coal Group, Inc.

SCOTT DEPOT, W.Va., Jan. 28 /PRNewswire-FirstCall/ --

Highlights:

  • 2009 Adjusted EBITDA hits record $201.7 million
  • Fourth quarter Adjusted EBITDA increases to $40.3 million
  • Fourth quarter margins improve to $12.11 per ton
  • Boosting low-volatile met production in response to increasing demand

International Coal Group, Inc. (NYSE: ICO) today reported its results for the fourth quarter and full year ended December 31, 2009.

  • Adjusted EBITDA, or earnings before deducting interest, income taxes, depreciation, depletion, amortization, loss on extinguishment of debt, impairment charges and noncontrolling interest, rose to $40.3 million for the fourth quarter of 2009 compared to $12.5 million for the fourth quarter of 2008.  
  • The Company reported a net loss of $11.3 million, or $0.07 per share on a diluted basis, for the fourth quarter of 2009 compared with a net loss of $37.4 million, or $0.24 per share on a diluted basis, for the same quarter in the prior year.  
  • Fourth quarter 2009 financial results include a non-cash charge of $13.3 million for losses on extinguishment of debt resulting from private exchanges of $63.5 million aggregate principal amount of the Company's 9% Convertible Senior Notes ("Convertible Notes") due 2012 for 18.7 million shares of the Company's common stock. Excluding the non-cash charge, the Company would have reported net income of $0.1 million, or essentially break-even per share on a diluted basis, for the fourth quarter of 2009.  
  • Revenues were $246.0 million for the fourth quarter of 2009 compared to $257.7 million for the fourth quarter of 2008.
  • Margin per ton sold increased to $12.11 in the fourth quarter of 2009, compared to $4.51 for the same period in 2008.

"We enter 2010 with positive momentum despite the general weakness in the global economy," said Ben Hatfield, ICG's President and CEO. "Both Adjusted EBITDA and margin on coal sales more than doubled compared to the fourth quarter of 2008.  Our focus on cost control has been successful even while operating at reduced production levels due to weak demand. Improved shipments of metallurgical coal partially offset lower-than-expected thermal coal shipments and weather-related rail service delays."

Hatfield continued, "Despite the broad market weakness our industry encountered in 2009, a growing number of signs point toward meaningful thermal coal price recovery in 2010:

  • Natural gas prices have climbed above the critical $5.00 benchmark, thus encouraging utilities to increase coal utilization.
  • Unusually cold winter weather throughout most of the country in December and January accelerated stockpile normalization.
  • Continued economic recovery is expected to lift industrial electricity demand.
  • Demand for high-volatile metallurgical coal has increased substantially and is expected to reduce the supply of coal available for eastern thermal markets."

Hatfield concluded, "We expect metallurgical coal demand to continue to improve in 2010 due to tighter global markets and increased domestic utilization. Met pricing has increased rapidly since early December and we have recently secured several new contracts at attractive prices."

2009 Full-Year Results

Revenues for the years ended December 31, 2009 and December 31, 2008 each totaled $1.1 billion. The Company reported 2009 Adjusted EBITDA of $201.7 million, the highest level in Company history, compared to $127.2 million for 2008.  Net income for 2009 was $21.5 million, or $0.14 per share on a diluted basis, versus a net loss for 2008 of $26.2 million, or $0.17 per share on a diluted basis.  

The Company's 2009 results include a non-cash charge totaling $13.3 million for losses on extinguishment of debt resulting from private exchanges of the Company's Convertible Notes and $42.6 million of revenue related to the termination of several coal supply agreements.

Results in 2008 include a non-cash charge of $37.4 million for goodwill impairment and non-recoverable mine development costs and a $24.6 million gain realized on the exchange of coal reserves.

Sales, Production and Reserves

ICG sold 3.8 million tons of coal during the fourth quarter of 2009 compared to 4.4 million tons during the fourth quarter of 2008. Production totaled 3.6 million tons in the fourth quarter of 2009 versus 4.3 million tons in the same period of 2008.

As of December 31, 2009, ICG controlled approximately 1.1 billion tons of coal reserves, located primarily in Illinois, Kentucky, West Virginia, Maryland and Virginia.  Additionally, the Company controlled approximately 431 million tons of non-reserve coal deposits, which may be classified as reserves in the future as additional drilling and geotechnical work is completed.

Operational and Other Updates

  • On December 21, 2009, Allegheny Energy, the sole customer of the Company's Sycamore 2 mine and a substantial contract customer at two other operations, ended its three-month suspension of contract shipments reportedly due to improving demand.  The Sycamore 2 mine was immediately restarted.  All three of the affected mining operations have now returned to normal production levels.
  • ICG Beckley commenced production from a third section on November 30, 2009 that is expected to increase production of premium low-volatile metallurgical coal by approximately 300,000 tons in 2010.  
  • On November 16, 2009, the Company reached a settlement with the Kentucky Waterways Alliance and the Sierra Club in a lawsuit over the issuance of a Clean Water Act Section 404 permit to ICG Hazard's Thunder Ridge surface mine in Leslie County, Kentucky. Under the settlement, ICG Hazard was allowed to construct a fourth and final valley fill at the Thunder Ridge mine in exchange for a contribution to a non-profit group conducting watershed assessments.  
  • In the fourth quarter, ICG ADDCAR began manufacturing a new Steep-Dip Highwall Mining System for delivery to a coal producer in India. The highwall mining system is expected to be shipped in the second quarter of 2010.  

Committed Sales and Market Outlook

For 2010, committed and priced sales are approximately 15.5 million tons, or about 91% of planned shipments, at an average price of approximately $61.50 per ton, excluding freight and handling expenses.  Approximately 1.0 million uncommitted tons for 2010 are expected to be marketed as metallurgical coal.  Metallurgical coal sales in 2010 are projected to total approximately 2.4 million tons.

For 2011, committed and priced sales are approximately 8.1 million tons, or 49% of planned shipments, at an average price of $55.50 per ton, excluding freight and handling expenses. The Company expects to sell approximately 2.5 million tons of metallurgical coal in 2011, essentially all of which is unpriced.

The Company believes that producer discipline and improved demand will result in utility inventories approaching normalized levels by mid-to-late summer.  According to published reports, utility stockpiles were reduced by nearly 30.0 million tons in December 2009 and early January 2010. In addition, growing thermal demand from Asia offers encouraging signs that U. S. exports could rebound by mid-year, further improving market fundamentals.  

Liquidity and Debt

As of December 31, 2009, the Company had $92.6 million in cash and $26.4 million in borrowing capacity available under its credit agreement.  Total debt was $386.5 million, consisting primarily of $175.0 million of 10.25% Senior Notes and $161.5 million of 9% Convertible Senior Notes.  

In December 2009, the Company entered into a series of privately negotiated agreements in order to exchange its outstanding Convertible Notes.  In connection with such agreements, the Company issued a total of 18.7 million shares of its common stock in exchange for $63.5 million aggregate principal amount of its Convertible Notes through December 31, 2009.  One of the exchange agreements, as amended, provided for closing of additional exchanges on each of January 11, 2010 and January 19, 2010.  In connection with this agreement, the noteholder exchanged an additional $22.0 million aggregate principal amount of Convertible Notes for 6.2 million shares of the Company's common stock in January 2010.  As a result of these private exchanges, the Company has reduced its indebtedness by approximately $85.5 million, and its related annual interest expense by approximately $10.0 million.  

Also in December, the Company filed a shelf registration statement with the Securities and Exchange Commission (SEC). The statement, which was declared effective on January 15, 2010, is expected to provide the Company with the flexibility to raise up to $600.0 million through future sales of securities, including common stock and debt securities. The registration is effective for three years.  

Current Guidance

The Company has updated its guidance to reflect modifications to its production mix and the global economic conditions affecting the coal market:

  • For 2010, the Company expects to sell 16.7 million to 17.3 million tons of coal, including approximately 2.4 million tons of metallurgical coal. The average selling price is projected to be $62.00 to $64.00 per ton, with an average cost of $49.50 to $51.50 per ton, excluding selling, general and administrative expenses. The Company expects coal production to be 16.0 million to 16.4 million tons.
  • Adjusted EBITDA is expected to be in the range of $170 million to $200 million in 2010.
  • The Company's expectation for average coal pricing by region for 2010 is as follows:
    
    
               Region                        2010 Forecast
               ------                       ---------------
               Central Appalachia           $70.00 - $72.00
               Northern Appalachia          $60.00 - $63.00
               Illinois Basin               $36.25 - $36.75
               Average                      $62.00 - $64.00
  • The Company anticipates 2010 capital expenditures of approximately $85.0 million to $95.0 million.
  • In 2011, the Company expects to sell 16.5 million to 18.0 million tons of produced coal, including approximately 2.5 million tons of metallurgical coal.

General Information

ICG is a leading producer of coal in Northern and Central Appalachia and the Illinois Basin.  The Company has 13 active mining complexes, of which 12 are located in Northern and Central Appalachia and one in Central Illinois.  ICG's mining operations and reserves are strategically located to serve utility, metallurgical and industrial customers domestically and internationally.

Forward-Looking Statements

Statements in this press release that are not historical facts are forward-looking statements within the "safe harbor" provision of the Private Securities Litigation Reform Act of 1995 and may involve a number of risks and uncertainties. We have used the words "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "plan," "predict," "project" and similar terms and phrases, including references to assumptions, to identify forward-looking statements. These forward-looking statements are made based on expectations and beliefs concerning future events affecting us and are subject to various risks, uncertainties and factors relating to our operations and business environment, all of which are difficult to predict and many of which are beyond our control, that could cause our actual results to differ materially from those matters expressed in or implied by these forward-looking statements. The following factors are among those that may cause actual results to differ materially from our forward-looking statements: market demand for coal, electricity and steel; availability of qualified workers; future economic or capital market conditions; weather conditions or catastrophic weather-related damage; our production capabilities; consummation of financing, acquisition or disposition transactions and the effect thereof on our business; a significant number of conversions of our convertible senior notes prior to maturity; our plans and objectives for future operations and expansion or consolidation; our relationships with, and other conditions affecting, our customers; availability and costs of key supplies or commodities such as diesel fuel, steel, explosives and tires; availability and costs of capital equipment; prices of fuels which compete with or impact coal usage, such as oil and natural gas; timing of reductions or increases in customer coal inventories; long-term coal supply arrangements; reductions and/or deferrals of purchases by major customers; risks in or related to coal mining operations, including risks related to third-party suppliers and carriers operating at our mines or complexes; unexpected maintenance and equipment failure; environmental, safety and other laws and regulations, including those directly affecting our coal mining and production, and those affecting our customers' coal usage; ability to obtain and maintain all necessary governmental permits and authorizations; competition among coal and other energy producers in the United States and internationally; railroad, barge, trucking and other transportation availability, performance and costs; employee benefits costs and labor relations issues; replacement of our reserves; our assumptions concerning economically recoverable coal reserve estimates; availability and costs of credit, surety bonds and letters of credit; title defects or loss of leasehold interests in our properties which could result in unanticipated costs or inability to mine these properties; future legislation and changes in regulations or governmental policies or changes in interpretations thereof, including with respect to safety enhancements and environmental initiatives relating to global warming;  impairment of the value of our long-lived and deferred tax assets; our liquidity, including the ability to adhere to financial covenants related to our borrowing arrangements, results of operations and financial condition; adequacy and sufficiency of our internal controls; and legal and administrative proceedings, settlements, investigations and claims and the availability of related insurance coverage.

You should keep in mind that any forward-looking statement made by us in this press release or elsewhere speaks only as of the date on which the statements were made. See also the "Risk Factors" in our 2008 Annual Report on Form 10-K/A and subsequent filings with the SEC which are currently available on our website at www.intlcoal.com. New risks and uncertainties arise from time to time, and it is impossible for us to predict these events or how they may affect us or our anticipated results. We have no duty to, and do not intend to, update or revise the forward-looking statements in this press release, except as may be required by law. In light of these risks and uncertainties, you should keep in mind that any forward-looking statement made in this press release might not occur. All data presented herein is as of December 31, 2009 unless otherwise noted.

    
    
                       INTERNATIONAL COAL GROUP, INC. AND SUBSIDIARIES
                  UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
               FOR THE THREE MONTHS AND YEARS ENDED DECEMBER 31, 2009 AND 2008
                    (in thousands, except share and per share amounts)
    
                               Three months ended             Year ended
                                   December 31,               December 31,
                                  ------------               ------------
                                2009         2008         2009         2008
                                ----         ----         ----         ----
    REVENUES:
      Coal sales revenues     $231,325    $236,282   $1,006,606      $998,245
      Freight and handling
       revenues                  5,827       9,739       26,279        45,231
      Other revenues             8,812      11,706       92,464        53,260
                                 -----      ------       ------        ------
        Total revenues         245,964     257,727    1,125,349     1,096,736
    COSTS AND EXPENSES:
      Cost of coal sales       184,842     216,385      832,214       882,983
      Freight and handling
       costs                     5,827       9,739       26,279        45,231
      Cost of other revenues     7,399       7,825       36,089        35,672
      Depreciation, depletion
       and amortization         26,790      25,169      106,084        96,047
      Selling, general and
       administrative            8,117      11,096       32,749        38,147
      Impairment loss                -      37,428            -        37,428
      (Gain) loss on sale of
        assets, net               (475)        157       (3,659)      (32,518)
                                  ----         ---       ------       -------
        Total costs and
         expenses              232,500     307,799    1,029,756     1,102,990
                               -------     -------    ---------     ---------
      Income (loss) from
       operations               13,464     (50,072)      95,593        (6,254)
    INTEREST AND OTHER
     INCOME(EXPENSE)
      Loss on extinguishment
       of debt                 (13,293)          -      (13,293)            -
      Interest expense, net    (13,403)    (12,824)     (53,044)      (43,643)
                               -------     -------      -------       -------
        Total interest and
         other income
         (expense)             (26,696)    (12,824)     (66,337)      (43,643)
                               -------     -------      -------       -------
      Income (loss) before
       income taxes            (13,232)    (62,896)      29,256       (49,897)
    INCOME TAX BENEFIT
     (EXPENSE)                   1,942      25,485       (7,732)       23,670
                                 -----      ------       ------        ------
      Net income (loss)        (11,290)    (37,411)      21,524       (26,227)
      Net (income) loss
       attributable to
       noncontrolling interest     (43)          3          (66)            -
                                   ---         ---          ---           ---
    Net income (loss)
     attributable to
     International Coal
     Group, Inc.              $(11,333)   $(37,408)     $21,458      $(26,227)
                              ========    ========      =======      ========
    
    Other Data:
    Adjusted EBITDA (a)        $40,254     $12,525     $201,677      $127,221
    Earnings per share:
      Basic                     $(0.07)     $(0.24)       $0.14        $(0.17)
      Diluted                   $(0.07)     $(0.24)       $0.14        $(0.17)
    Weighted-average
     shares:
      Basic                155,889,377  152,765,879  153,630,446  152,632,586
      Diluted              155,889,377  152,765,879  155,386,263  152,632,586
    
    
    (a) This press release includes a non-GAAP financial measure within
        the meaning of applicable SEC rules and regulations. Adjusted EBITDA
        is a non-GAAP financial measure used by management to gauge
        operating performance. We define Adjusted EBITDA as net income or
        loss attributable to International Coal Group, Inc. before deducting
        interest, income taxes, depreciation, depletion, amortization, loss
        on extinguishment of debt, impairment charges and noncontrolling
        interest. Adjusted EBITDA is not, and should not be used as, a
        substitute for operating income, net income and cash flow as
        determined in accordance with GAAP. We present Adjusted EBITDA
        because we consider it an important supplemental measure of our
        performance and believe it is frequently used by securities analysts,
        investors and other interested parties in the evaluation of companies
        in our industry, substantially all of which present EBITDA or
        Adjusted EBITDA when reporting their results. We also use Adjusted
        EBITDA as our executive compensation plan bases incentive
        compensation payments on our Adjusted EBITDA performance measured
        against budgets. Our credit facility uses Adjusted EBITDA (with
        additional adjustments) to measure our compliance with covenants,
        such as interest coverage and leverage. EBITDA or Adjusted EBITDA is
        also widely used by us and others in our industry to evaluate and
        price potential acquisition candidates. Adjusted EBITDA has
        limitations as an analytical tool, and you should not consider it in
        isolation or as a substitute for analysis of our results as reported
        under GAAP. Some of these limitations are that Adjusted EBITDA does
        not reflect our cash expenditures, or future requirements, for
        capital expenditures or contractual commitments; changes in, or cash
        requirements for, our working capital needs; interest expense, or the
        cash requirements necessary to service interest or principal
        payments, on our debts. Although depreciation, depletion and
        amortization are non-cash charges, the assets being depreciated,
        depleted and amortized will often have to be replaced in the future.
        Adjusted EBITDA does not reflect any cash requirements for such
        replacements. Other companies in our industry may calculate EBITDA or
        Adjusted EBITDA differently than we do, limiting its usefulness as a
        comparative measure. A reconciliation of Adjusted EBITDA to GAAP net
        income appears at the end of this press release.
    
    
    
    
    
                       INTERNATIONAL COAL GROUP, INC. AND SUBSIDIARIES
                       UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
                              AS OF DECEMBER 31, 2009 AND 2008
                                      (in thousands)
                                          December 31,    December 31,
                                             2009            2008
                                          -----------     -----------
    ASSETS
    CURRENT ASSETS:
      Cash and cash equivalents               $92,641         $63,930
      Accounts receivable, net                 80,291          75,321
      Inventories, net                         82,037          58,788
      Deferred income taxes                    15,906          17,649
      Prepaid expenses and other               17,734          32,303
                                               ------          ------
    Total current assets                      288,609         247,991
    
    PROPERTY, PLANT, EQUIPMENT AND MINE
     DEVELOPMENT, net                       1,038,200       1,069,297
    DEBT ISSUANCE COSTS, net                    7,634          10,462
    ADVANCE ROYALTIES, net                     18,025          17,462
    OTHER NON-CURRENT ASSETS                   15,492           5,435
                                               ------           -----
        Total assets                       $1,367,960      $1,350,647
                                           ==========      ==========
    
    LIABILITIES AND STOCKHOLDERS' EQUITY
    CURRENT LIABILITIES:
      Accounts payable                        $63,582         $75,810
      Short-term debt                           2,166           4,741
      Current portion of long-term debt
       and capital leases                      17,794          15,319
      Current portion of reclamation and
       mine closure costs                       9,390          11,139
      Current portion of employee
       benefits                                 3,973           3,359
      Accrued expenses and other               74,803          87,704
                                               ------          ------
        Total current liabilities             171,708         198,072
    
    
    LONG-TERM DEBT AND CAPITAL LEASE          366,515         417,551
    RECLAMATION AND MINE CLOSURE COSTS         65,601          68,107
    EMPLOYEE BENEFITS                          63,767          56,563
    DEFERRED INCOME TAXES                      57,399          51,154
    BELOW-MARKET COAL SUPPLY AGREEMENTS        29,939          43,888
    OTHER NON-CURRENT LIABILITIES               3,797           6,195
                                                -----           -----
        Total liabilities                     758,726         841,530
    
    COMMITMENTS AND CONTINGENCIES
    
    STOCKHOLDERS' EQUITY:
      Common stock                              1,728           1,533
      Treasury stock                              (14)              -
      Additional paid-in capital              732,124         656,997
      Accumulated other comprehensive
       income (loss)                            1,048          (2,277)
      Retained deficit                       (125,713)       (147,171)
                                             --------        --------
        Total International Coal Group,
         Inc. stockholders' equity            609,173         509,082
      Noncontrolling interest                      61              35
                                                  ---             ---
        Total stockholders' equity            609,234         509,117
                                              -------         -------
        Total liabilities and stockholders'
          equity                           $1,367,960      $1,350,647
                                           ==========      ==========
    
    
    
    
    
    
                       INTERNATIONAL COAL GROUP, INC. AND SUBSIDIARIES
                 UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                        FOR THE YEARS ENDED DECEMBER 31, 2009 AND 2008
                                     (IN THOUSANDS)
    
                                                     Year ended
                                                    December 31,
                                                    ------------
                                                2009            2008
                                                ----            ----
    CASH FLOWS FROM OPERATING ACTIVITIES:
      Net income (loss)                       $21,524        $(26,227)
      Adjustments to reconcile net
       income (loss) to net cash from
       operating activities:
        Depreciation, depletion and
         amortization                         106,084          96,047
        Loss on extinguishment of debt         13,293               -
        Impairment loss                             -          37,428
        Amortization of deferred finance
         costs and debt discount                7,001           6,141
        Amortization of accumulated
         employee benefit obligations            (102)           (518)
        Compensation expense on share
         based awards                           3,705           4,174
        Gain on sale of assets, net            (3,659)        (32,518)
        Provision for bad debt                 (1,294)            994
        Deferred income taxes                   7,859         (24,434)
        Changes in assets and
         liabilities:
          Accounts receivable                  (3,676)          7,918
          Inventories                         (23,249)        (17,333)
          Prepaid expenses and other           14,569          (3,545)
          Other non-current assets                399          (2,744)
          Accounts payable                    (16,814)          7,116
          Accrued expenses and other          (13,089)         24,677
          Reclamation and mine closure
           costs                                1,341          (5,281)
          Other liabilities                     1,862           6,834
                                                -----           -----
            Net cash from operating
             activities                       115,754          78,729
    CASH FLOWS FROM INVESTING ACTIVITIES:
      Proceeds from the sale of assets          3,695           8,786
      Additions to property, plant,
       equipment and mine development         (66,345)       (132,197)
      Cash paid related to
       acquisitions, net                            -            (603)
      Deposits of restricted cash             (10,468)            (26)
      Distribution to joint venture               (40)              -
                                                  ---             ---
            Net cash from investing
             activities                       (73,158)       (124,040)
    CASH FLOWS FROM FINANCING ACTIVITIES:
      Borrowings on short-term debt             2,611           6,310
      Repayments on short-term debt            (5,186)         (1,569)
      Borrowings on long-term debt              9,086           3,496
      Repayments on long-term debt            (19,104)         (6,295)
      Purchases of treasury stock                 (14)              -
      Proceeds from stock options
       exercised                                    -             149
      Debt issuance costs                      (1,278)              -
                                               ------             ---
            Net cash from financing
             activities                       (13,885)          2,091
                                              -------           -----
    NET CHANGE IN CASH AND CASH EQUIVALENTS    28,711         (43,220)
    CASH AND CASH EQUIVALENTS, BEGINNING OF
     PERIOD                                    63,930         107,150
                                               ------         -------
    CASH AND CASH EQUIVALENTS, END OF PERIOD  $92,641        $63,930
                                              =======         =======
    
    
    
    
    
                       INTERNATIONAL COAL GROUP, INC. AND SUBSIDIARIES
                    RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA
              FOR THE THREE MONTHS AND YEARS ENDED DECEMBER 31, 2009 AND 2008
                                    (Unaudited)
                                  (in thousands)
    
                                 Three months ended           Year ended
                                    December 31,              December 31,
                                 ------------------           ------------
                                 2009          2008          2009       2008
                                 ----          ----          ----       ----
    Net income (loss)
     attributable to
     International Coal
     Group, Inc.              $(11,333)     $(37,408)      $21,458   $(26,227)
    Depreciation, depletion
     and amortization           26,790        25,169       106,084     96,047
    Interest expense, net       13,403        12,824        53,044     43,643
    Income tax (benefit)
     expense                    (1,942)      (25,485)        7,732    (23,670)
    Loss on extinguishment
     of debt                    13,293             -        13,293          -
    Impairment losses                -        37,428             -     37,428
    Noncontrolling interest         43            (3)           66          -
                                   ---           ---           ---        ---
    Adjusted EBITDA            $40,254       $12,525      $201,677   $127,221
                               =======       =======      ========   ========
    
    
    
    
    
                       INTERNATIONAL COAL GROUP, INC. AND SUBSIDIARIES
                                OPERATING STATISTICS
            FOR THE THREE MONTHS AND YEARS ENDED DECEMBER 31, 2009 AND 2008
                                    (Unaudited)
                     (in thousands, except per ton amounts)
    
                           Central     Northern  Illinois Purchased
                          Appalachia  Appalachia  Basin    Coal      Total
                          ----------  ----------  -----    ----      -----
    For the three months
     ended December 31,
     2009:
    --------------------
    Tons sold                   2,272      844       554     167       3,837
    Coal sales revenues      $155,843  $49,135   $19,163  $7,184    $231,325
    Cost of coal sales       $117,541  $40,993   $17,018  $9,290    $184,842
    Coal sales revenue
     per ton (b)               $68.60   $58.22    $34.59  $43.00      $60.29
    Cost of coal sales
     per ton (b)               $51.74   $48.58    $30.72  $55.60      $48.18
    
    For the three months
     ended December 31,
     2008:
    --------------------
    Tons sold                   2,709      968       569     166       4,412
    Coal sales
     revenues                $159,540  $52,404   $17,177  $7,161    $236,282
    Cost of coal sales       $152,231  $45,901   $12,877  $5,376    $216,385
    Coal sales revenue
     per ton (b)               $58.91   $54.17    $30.17  $43.01      $53.56
    Cost of coal sales
     per ton (b)               $56.21   $47.45    $22.62  $32.29      $49.05
    
    For the years ended
     December 31, 2009:
    -------------------
    Tons sold                   9,984     3,803    2,254      792      16,833
    Coal sales revenues      $682,088  $207,022  $75,817  $41,679  $1,006,606
    Cost of coal sales       $554,368  $182,607  $62,958  $32,281    $832,214
    Coal sales revenue
     per ton (b)               $68.32    $54.43   $33.63   $52.62      $59.80
    Cost of coal sales
     per ton (b)               $55.53    $48.01   $27.93   $40.76      $49.44
    
    For the years ended
     December 31, 2008:
    -------------------
    Tons sold                  11,617     3,937    2,331    1,029      18,914
    Coal sales revenues      $672,077  $209,932  $69,796  $46,440    $998,245
    Cost of coal sales       $595,683  $193,389  $57,424  $36,487    $882,983
    Coal sales revenue
     per ton (b)               $57.85    $53.33   $29.94   $45.10      $52.78
    Cost of coal sales
     per ton (b)               $51.28    $49.13   $24.63   $35.43      $46.68
    
    (b) "Coal sales revenue per ton" and "Cost of coal sales per
        ton" are calculated as Coal sales revenues or Cost of coal
        sales, respectively, divided by Tons sold. Although Coal sales
        revenue per ton and Cost of coal sales per ton are not
        measures of performance calculated in accordance with GAAP,
        management believes that they are useful to an investor in
        evaluating performance because they are widely used in the
        coal industry as a measure to evaluate a company's sales
        performance or control over its costs. Coal sales revenue per
        ton and Cost of coal sales per ton should not be considered in
        isolation or as substitutes for measures of performance in
        accordance with GAAP. In addition, because Coal sales revenue
        per ton and Cost of coal sales per ton are not calculated
        identically by all companies, ICG's presentation may not be
        comparable to other similarly titled measures of other
        companies.

SOURCE International Coal Group, Inc.



RELATED LINKS

http://www.intlcoal.com