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ASHLAND COAL REPORTS EARNINGS FOR THIRD QUARTER OF 1992

 ASHLAND COAL REPORTS EARNINGS FOR THIRD QUARTER OF 1992
 HUNTINGTON, W.Va., Oct. 16 /PRNewswire/ -- Ashland Coal, Inc. (NYSE: ACI) reported today that its net income was $8.0 million, or $.41 a share on a fully diluted basis, for the third quarter ended Sept. 30, 1992.
 This compares to net income of $9.4 million, or $.54 a share, for the same quarter last year. Revenues for the third quarter were $160.7 million, as compared to $112.1 million in the third quarter of 1991.
 For the nine months ended Sept. 30, 1992, Ashland Coal earned $23.3 million or $1.23 a share. For the same period last year, the company's net income was $27.1 million or $1.56 a share. Revenues were $416.1 million for the first nine months of 1992 compared to $332.2 million a year ago.
 "Our April acquisition of Dal-Tex Coal Corporation and the continuing development at Mingo Logan Coal Company again make year-to-year comparisons difficult," William C. Payne, chairman, president and chief executive officer, reported. "Although production was affected by the annual miners' vacation period, Dal-Tex produced over 1.25 million tons, and Mingo Logan's production increased 200 thousand tons from last year's third quarter," Payne continued.
 "Average selling prices declined, reflecting both the lower average selling prices of Dal-Tex's contracts and the weak spot market," Payne noted. "Mining costs rose slightly in the third quarter. The favorable cost structures at Mingo Logan and Dal-Tex helped offset increased costs experienced at Hobet Mining, Inc. The Hobet increase was due to less favorable mining conditions."
 For the third quarter, selling, general and administrative costs showed a significant increase due to $2.5 million of amortization of the investment in one of Dal-Tex's sales contracts. Interest expense also increased markedly, reflecting the effects of acquisition financing and the increased investment in plant and equipment at Mingo Logan.
 "In general, the coal market remains weak, but we have seen some price increase in the spot market. We believe that we will see improvement in the coal markets when the economy strengthens and weather patterns return to normal," Payne commented.
 "At the end of September, Mingo Logan's new longwall equipment began operations, marking the completion of the Mingo Logan development," Payne said. "Within a short period of time, we expect the equipment to be 'debugged' and operating on a consistent basis. By the end of the year, we expect the longwall to be operating at a high level of efficiency."
 Ashland Coal, Inc. is engaged in the mining, processing and sale of low-sulfur coal, and markets its coal principally to electric utilities in the eastern United States and into the export markets.
 Dal-Tex Coal Corporation, Mingo Logan Coal Company and Hobet Mining, Inc. are independent operating subsidiaries of Ashland Coal, Inc.
 ASHLAND COAL, INC. AND SUBSIDIARIES
 Condensed Consolidated Statements of Income
 (In thousands, except per share data)
 Period Ended Three Months Nine Months
 Sept. 30 1992 1991 1992 1991
 (Unaudited)
 Revenues
 Coal sales $155,877 $108,443 $404,477 $322,874
 Operating revenues 4,824 3,624 11,662 9,373
 160,701 112,067 416,139 332,247
 Costs and expenses
 Cost of coal sold 134,311 88,700 344,656 267,316
 Operating expenses 3,142 3,654 7,756 7,610
 Selling, general &
 admin. expenses 8,419 5,931 22,917 16,790
 145,872 98,285 375,329 291,716
 Operating income 14,829 13,782 40,810 40,531
 Other income (expense)
 Interest income 338 280 719 499
 Interest expense (5,942) (2,485) (15,078) (7,287)
 Inc. bef. inc. taxes 9,225 11,577 26,451 33,743
 Income tax expense 1,261 2,148 3,121 6,648
 Net income 7,964 9,429 23,330 27,095
 Earnings per common share
 Primary $.43 $.58 $1.31 $1.68
 Fully diluted $.41 $.54 $1.23 $1.56
 Weighted average shares
 outstanding
 Primary 17,127 15,184 16,512 15,135
 Fully diluted 18,574 16,637 17,962 16,633
 Interest capitalized $1,555 $1,819 $4,391 $4,258
 Operating Information
 (In thousands of tons)
 Period Ended Three Months Nine Months
 Sept. 30 1992 1991 1992 1991
 Coal Sales
 Domestic contract 2,799 1,794 7,333 5,218
 Domestic spot 1,304 786 3,199 2,516
 Export 1,250 978 3,183 3,108
 5,353 3,558 13,715 10,842
 Coal Sources
 Hobet Mining,
 Inc. (A) 1,231 1,279 3,839 3,959
 Coal-Mac, Inc.(A) 548 710 1,706 2,332
 Dal-Tex Coal
 Corp. (A) 1,259 -- 2,778 --
 Mingo Logan Coal
 Company (A) 1,259 1,045 3,711 2,814
 Purchases 560 447 1,350 1,492
 Other, including
 inventory change 496 77 331 245
 5,353 3,558 13,715 10,842
 (A) Independent operating subsidiary of Ashland Coal, Inc.
 ASHLAND COAL, INC. AND SUBSIDIARIES
 Condensed Consolidated Balance Sheets
 (In thousands)
 Sept. 30 Dec. 31
 1992 1991
 (Unaudited)
 Assets
 Current assets
 Cash and cash equivalents $313 $8,214
 Accounts and notes receivable 70,145 48,493
 Inventories 23,657 20,394
 Prepaid royalties 9,944 3,284
 Other current assets 1,531 842
 105,590 81,227
 Other assets
 Prepaid royalties 61,430 60,240
 Coal supply agreements 63,684 43,259
 Notes receivable and other assets 26,964 5,090
 152,078 108,589
 Property, plant and equipment
 Cost 876,627 494,281
 Less accumulated depreciation,
 depletion and amortization 170,908 137,262
 705,719 357,019
 963,387 546,835
 Liabilities and Stockholders' Equity
 Current liabilities
 Accounts payable 36,218 31,490
 Accrued expenses 27,667 21,269
 Income taxes payable 4,004 4,594
 Deferred income taxes 6,872 952
 Current portion of long-term debt 990 24
 75,751 58,329
 Long-term debt 394,654 181,066
 Accrued postretirement benefits 19,350 --
 Accrued black lung benefits 13,969 8,863
 Other long-term liabilities 20,419 15,492
 Deferred income taxes 124,277 45,942
 Deferred gain on sale and leaseback
 of asset 3,567 3,822
 Convertible Class C preferred stock
 (subject to redemption) 33,697 32,741
 Stockholders' equity
 Convertible Class B preferred stock 33,050 33,050
 Common stock 136 116
 Paid-in capital 104,209 43,523
 Retained earnings 140,308 123,891
 277,703 200,580
 963,387 546,835
 -0- 10/16/92
 /CONTACT: David Todd of Ashland Coal, 304-526-3755/
 (ACI) CO: Ashland Coal, Inc. ST: West Virginia IN: MNG SU: ERN


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