International Coal Group reports Fourth Quarter, Year-End 2009 Results

    SCOTT DEPOT -- International Coal Group, Inc. has 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 .07 per share on a diluted basis, for the fourth quarter of 2009 compared with a net loss of $37.4 million, or .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 .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 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."

    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 .14 per share on a diluted basis, versus a net loss for 2008 of $26.2 million, or .17 per share on a diluted basis.

    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.

    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.