ISG Resources, Inc., Releases 2000 Earnings Report

Apr 02, 2001, 01:00 ET from ISG Resources, Inc.

    SALT LAKE CITY, April 2 /PRNewswire/ -- ISG Resources, Inc. ("ISG"), the
 nation's largest company dedicated to coal combustion product management, has
 released its earnings for 2000.
     For the year ending December 31, 2000, the Company generated EBITDA
 (earnings before interest expense, income taxes, depreciation and
 amortization) of $18.1 million on revenue of $180.9 million, an EBITDA margin
 of 10.0%.  EBITDA for the year ending December 31, 1999 was $26.7 million on
 revenues of $156.2 million.  On a pro forma basis, for the twelve months
 ending December 31, 2000, the Company generated EBITDA of $21.4 million on
 revenue of $195.8 million.
     Commenting on the annual results, R Steve Creamer, ISG's Chairman and CEO
 said, "We are disappointed by the earnings performance in 2000, but believe it
 was the result of a combination of factors that have been fully addressed by
 the company.  We are optimistic for a return to a strong earnings performance
 by ISG in 2001."
     Creamer cited several operational difficulties encountered by ISG that
 started in the second quarter and continued well into the fourth quarter.
 ISG's inability to load product at one of its most profitable utilities in
 Texas continued throughout the second and third quarters, affecting ISG's
 ability to service customers by rail into Florida.  The loading problem was
 finally solved in mid October.  Additionally, unexpected high levels of
 residual carbon at two power plants in the Northeast affected profitability in
 the second and third quarters.  ISG has acquired patent rights that allow the
 company to apply a chemical additive to fly ash to fix the carbon problem and
 ISG installed the necessary equipment in the two affected plants by December.
     Unexpected severe weather in Texas in November and December also had a
 significant negative impact on both the fly ash and manufactured products
 divisions of the company.  Health insurance costs also increased dramatically
 in the fourth quarter.  Finally, the Company expensed $1.5 million of
 unsuccessful acquisition costs in the fourth quarter, primarily because of
 Tatum Industries.
     On March 29, 2001, the Company amended its Secured Credit Facility.
     "We continue to improve product demand, particularly in the Western U.S.,
 and we are continuing to secure long term contracts with utilities that are
 strategic to ISG's current markets," said Creamer.  "In addition to addressing
 the operational challenges that affected earnings last year, we have
 diligently pursued other improvements aimed at bolstering financial
 performance in 2001.  For instance, the company is now completing construction
 of a major new terminal facility in Stockton, California, that will be
 operational for the key summer construction season.  Implementation of the
 company's carbon fixation technology is being spread to additional power
 plants nationwide and the company is aggressively commercializing new
 manufactured products technologies that in the past represented research and
 development expenses."
     ISG is a subsidiary of Industrial Services Group; a Citicorp Venture
 Capital Portfolio Company dedicated to promoting the use of recycled coal
 combustion products in the construction materials sector.  For more
 information on ISG's products and services, call John Ward at (801) 560-5245
 or visit www.isgresources.com.
 
     Forward-looking statements in this release are made pursuant to the
 "safe harbor" provisions of the Private Securities Litigation Reform Act of
 1995.  Investors are cautioned that such forward looking statements involve
 risks and uncertainties, including without limitation, possible changes in
 cost of materials, expense items, capital expenditures, capital structure, and
 other financial items; introduction of new products and possible acquisition
 of assets and businesses; possible actions by customers, suppliers,
 competitors, regulatory authorities; and other risks detailed from time to
 time in the Company's periodic reports filed with the Securities and Exchange
 Commission.
 
 

SOURCE ISG Resources, Inc.
    SALT LAKE CITY, April 2 /PRNewswire/ -- ISG Resources, Inc. ("ISG"), the
 nation's largest company dedicated to coal combustion product management, has
 released its earnings for 2000.
     For the year ending December 31, 2000, the Company generated EBITDA
 (earnings before interest expense, income taxes, depreciation and
 amortization) of $18.1 million on revenue of $180.9 million, an EBITDA margin
 of 10.0%.  EBITDA for the year ending December 31, 1999 was $26.7 million on
 revenues of $156.2 million.  On a pro forma basis, for the twelve months
 ending December 31, 2000, the Company generated EBITDA of $21.4 million on
 revenue of $195.8 million.
     Commenting on the annual results, R Steve Creamer, ISG's Chairman and CEO
 said, "We are disappointed by the earnings performance in 2000, but believe it
 was the result of a combination of factors that have been fully addressed by
 the company.  We are optimistic for a return to a strong earnings performance
 by ISG in 2001."
     Creamer cited several operational difficulties encountered by ISG that
 started in the second quarter and continued well into the fourth quarter.
 ISG's inability to load product at one of its most profitable utilities in
 Texas continued throughout the second and third quarters, affecting ISG's
 ability to service customers by rail into Florida.  The loading problem was
 finally solved in mid October.  Additionally, unexpected high levels of
 residual carbon at two power plants in the Northeast affected profitability in
 the second and third quarters.  ISG has acquired patent rights that allow the
 company to apply a chemical additive to fly ash to fix the carbon problem and
 ISG installed the necessary equipment in the two affected plants by December.
     Unexpected severe weather in Texas in November and December also had a
 significant negative impact on both the fly ash and manufactured products
 divisions of the company.  Health insurance costs also increased dramatically
 in the fourth quarter.  Finally, the Company expensed $1.5 million of
 unsuccessful acquisition costs in the fourth quarter, primarily because of
 Tatum Industries.
     On March 29, 2001, the Company amended its Secured Credit Facility.
     "We continue to improve product demand, particularly in the Western U.S.,
 and we are continuing to secure long term contracts with utilities that are
 strategic to ISG's current markets," said Creamer.  "In addition to addressing
 the operational challenges that affected earnings last year, we have
 diligently pursued other improvements aimed at bolstering financial
 performance in 2001.  For instance, the company is now completing construction
 of a major new terminal facility in Stockton, California, that will be
 operational for the key summer construction season.  Implementation of the
 company's carbon fixation technology is being spread to additional power
 plants nationwide and the company is aggressively commercializing new
 manufactured products technologies that in the past represented research and
 development expenses."
     ISG is a subsidiary of Industrial Services Group; a Citicorp Venture
 Capital Portfolio Company dedicated to promoting the use of recycled coal
 combustion products in the construction materials sector.  For more
 information on ISG's products and services, call John Ward at (801) 560-5245
 or visit www.isgresources.com.
 
     Forward-looking statements in this release are made pursuant to the
 "safe harbor" provisions of the Private Securities Litigation Reform Act of
 1995.  Investors are cautioned that such forward looking statements involve
 risks and uncertainties, including without limitation, possible changes in
 cost of materials, expense items, capital expenditures, capital structure, and
 other financial items; introduction of new products and possible acquisition
 of assets and businesses; possible actions by customers, suppliers,
 competitors, regulatory authorities; and other risks detailed from time to
 time in the Company's periodic reports filed with the Securities and Exchange
 Commission.
 
 SOURCE  ISG Resources, Inc.