Printer Friendly

ASHLAND COAL REPORTS EARNINGS FOR FIRST QUARTER OF 1992

 ASHLAND COAL REPORTS EARNINGS FOR FIRST QUARTER OF 1992
 HUNTINGTON, W.Va., April 22 /PRNewswire/ -- Ashland Coal, Inc. (NYSE: ACI) reported today that it earned $7.3 million, or $.41 a share on a fully diluted basis, for the first quarter ended March 31, 1992.
 This compares to net income of $7.4 million, or $.42 a share, for the same quarter last year. Revenues for the first quarter were $110.8, million, as compared to $113.0 million in the first quarter of 1991.
 "Although production was up over 7.4 percent, sales volume declined about 6 percent from last year's record first quarter level," reported William C. Payne, president and chief executive officer. "The decline in sales volume, due to the timing of export shipments, resulted in reduced purchased coal volumes and an inventory build-up.
 "Reduced sales volumes were offset by higher margins per ton," Payne said. "Our average selling price improved from last year's first quarter as more tonnage was sold under domestic contracts and less was sold in the lower priced export market," he continued. "However, higher ton cost of sales partially offset the improved average selling price. less favorable mining conditions at Hobet Mining, Inc. and nonrecurring costs at Coal-Mac, Inc. and Hobet led to higher costs for those operations. Mingo Logan Coal Company also experienced higher costs in connection with development of its Mountaineer Mine and start-up and operation of its Black Bear Preparation Plant."
 Ashland Coal's interest expense increased as the result of higher levels of debt related to the development of Mingo Logan and higher interest rates resulting from extending debt maturities. Effects of both the recent acquisition of Dal-Tex Coal Corporation and decreased costs expected at Mingo Logan when the longwall goes into operation reduced Ashland Coal's estimated tax rate.
 "The acquisition of Dal-Tex will add substantially to our sales volumes and revenues, and the coal will be mined at low cost, but the interest related to the acquisition financing will result in the acquisition having only a minor favorable effect in 1992," Payne concluded.
 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.
 Coal-Mac, Inc., Hobet Mining, Inc., Mingo Logan Coal Company and Dal-Tex Coal Corporation are independent operating subsidiaries of Ashland Coal, Inc.
 ASHLAND COAL, INC., AND SUBSIDIARIES
 Condensed Consolidated Statements of Income
 (In thousands, except per share data)
 Three Months Ended March 31 1992 1991
 (Unaudited)
 Revenues
 Coal sales $107,770 $109,844
 Operating revenues 3,050 3,177
 110,820 113,021
 Costs and expenses
 Cost of coal sold 91,555 93,966
 Operating expenses 2,051 2,229
 Selling, general & adm. expenses 5,835 5,290
 99,441 101,485
 Operating income 11,379 11,536
 Other income (expense)
 Interest income 53 53
 Interest expense (A) (2,935) (2,358)
 Income before income taxes 8,497 9,231
 Income tax expense 1,215 1,836
 Net income 7,282 7,395
 Earnings per common share
 Primary $.44 $.45
 Fully diluted $.41 $.42
 Weighted average shares outstanding
 Primary 15,223 15,094
 Fully diluted 16,689 16,544
 Operating Information
 (In thousands of tons)
 Three Months Ended March 31 1992 1991
 Coal sales
 Domestic contract 1,768 1,670
 Domestic spot 896 834
 Export 881 1,279
 3,545 3,783
 Coal sources
 Hobet Mining, Inc. (B) 1,308 1,377
 Coal-Mac, Inc. (B) 606 735
 Mingo Logan Coal Company (B) 1,233 818
 Purchases 523 717
 Other, including inventory change (125) 136
 3,545 3,783
 (A) Interest costs of $1,483,000 and $1,127,000 were capitalized in the three months ended March 31, 1992 and 1991, respectively.
 (B) Independent operating subsidiary of Ashland Coal, Inc.
 Condensed Consolidated Balance Sheets
 (In thousands)
 March 31, 1992 Dec. 31, 1991
 Assets (Unaudited)
 Current assets
 Cash and cash equivalents $3,803 $8,214
 Accounts and notes receivable 44,581 48,493
 Inventories 25,170 20,394
 Prepaid royalties 3,047 3,284
 Other current assets 673 842
 77,274 81,227
 Other assets
 Prepaid royalties 61,574 60,240
 Coal supply agreements 42,116 43,259
 Notes receivable and other assets 5,086 5,090
 108,776 108,589
 Property, plant and equipment
 Cost 522,037 494,281
 Less accumulated depreciation,
 depletion and amortization 144,424 137,262
 377,613 357,019
 563,663 546,835
 Liabilities and stockholders' equity
 Current liabilities
 Accounts payable 34,868 31,490
 Accrued expenses 19,005 21,269
 Income taxes payable 3,200 4,594
 Deferred income taxes 1,680 952
 Current portion of long-term debt 21 24
 58,774 58,329
 Long-term debt 192,865 181,066
 Accrued black lung benefits 8,895 8,863
 Other long-term liabilities 16,238 15,492
 Deferred income taxes 43,763 45,942
 Deferred gain on sale and leaseback
 of asset 3,737 3,822
 Convertible Class C preferred stock
 (subject to redemption) 33,057 32,741
 Stockholders' equity
 Convertible Class B preferred stock 33,050 33,050
 Common stock 116 116
 Paid-in capital 43,816 43,523
 Retained earnings 129,352 123,891
 206,334 200,580
 563,663 546,835
 -0- 4/22/92
 /CONTACT: David Todd of Ashland Coal, 304-526-3755/
 (ACI) CO: Ashland Coal, Inc. ST: West Virginia IN: MNG SU: ERN


JT-CD -- PG006 -- 1027 04/22/92 07:56 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Apr 22, 1992
Words:903
Previous Article:NORTHEAST FEDERAL ANNOUNCES SIGNED ACQUISITION AGREEMENT WITH RECEIVERS OF FOUR RHODE ISLAND FINANCIAL INSTITUTIONS
Next Article:YORK INTERNATIONAL REPORTS RECORD FIRST QUARTER RESULTS


Related Articles
ASHLAND REPORTS SECOND-QUARTER LOSS, 29 PERCENT INCREASE FOR FISCAL '92 FIRST HALF
ASHLAND COAL REPORTS EARNINGS FOR SECOND QUARTER OF 1992
ASHLAND COAL REPORTS EARNINGS FOR THIRD QUARTER OF 1992
ASHLAND COAL REPORTS EARNINGS FOR FOURTH QUARTER OF 1992 AND YEAR
ASHLAND COAL EXPECTS LOWER EARNINGS
ASHLAND REPORTS SMALL MARCH QUARTER PROFIT; IMPROVED RESULTS IN FIRST FISCAL HALF
ASHLAND COAL REPORTS EARNINGS FOR FIRST QUARTER OF 1993
ASHLAND OIL TO RECEIVE ONE-TIME GAINTO FISCAL FOURTH QUARTER EARNINGS
ASHLAND COAL REPORTS EARNINGS FOR THIRD QUARTER
ASHLAND COAL FIRST QUARTER RESULTS AFFECTED BY WEATHER AND STRIKE AFTEREFFECTS

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters