Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Oct. 28, 2013 | |
Document And Entity Information | ' | ' |
Entity Registrant Name | 'James River Coal CO | ' |
Entity Central Index Key | '0001297720 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-13 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Is Entity a Well-known Seasoned Issuer? | 'No | ' |
Is Entity a Voluntary Filer? | 'No | ' |
Is Entity's Reporting Status Current? | 'Yes | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 36,060,869 |
Document Fiscal Period Focus | 'Q3 | ' |
Document Fiscal Year Focus | '2013 | ' |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Assets: | ' | ' |
Cash and cash equivalents | $60,207 | $127,386 |
Trade receivables | 52,209 | 89,816 |
Inventories: | ' | ' |
Coal | 62,247 | 26,598 |
Materials and supplies | 15,863 | 16,699 |
Total inventories | 78,110 | 43,297 |
Prepaid royalties | 8,501 | 8,623 |
Other current assets | 7,775 | 9,127 |
Total current assets | 206,802 | 278,249 |
Property, plant, and equipment, net | 790,698 | 855,217 |
Restricted cash and short term investments (note 1) | 36,681 | 36,558 |
Other assets | 31,859 | 34,097 |
Total assets | 1,066,040 | 1,204,121 |
Liabilities and Shareholders' Equity | ' | ' |
Accounts payable | 53,849 | 72,861 |
Accrued salaries, wages, and employee benefits | 12,085 | 10,996 |
Workers' compensation benefits | 9,900 | 9,900 |
Black lung benefits | 2,508 | 2,508 |
Accrued taxes | 10,202 | 8,382 |
Other current liabilities | 28,342 | 22,124 |
Total current liabilities | 116,886 | 126,771 |
Long-term debt, less current maturities | 425,379 | 546,407 |
Other liabilities: | ' | ' |
Noncurrent portion of workers' compensation benefits | 68,500 | 66,953 |
Noncurrent portion of black lung benefits | 64,360 | 62,834 |
Pension obligations | 32,617 | 35,325 |
Asset retirement obligations | 101,178 | 99,177 |
Other | 9,778 | 12,027 |
Total other liabilities | 276,433 | 276,316 |
Total liabilities | 818,698 | 949,494 |
Commitments and contingencies (note 4) | ' | ' |
Shareholders' equity: | ' | ' |
Preferred stock, $1.00 par value. Authorized 10,000,000 shares | 0 | 0 |
Common stock, $.01 par value. Authorized 100,000,000 shares; issued and outstanding 36,060,869 and 35,866,549 shares as of September 30, 2013 and December 31, 2012 | 361 | 359 |
Paid-in-capital | 549,333 | 546,289 |
Accumulated deficit | -251,587 | -236,588 |
Accumulated other comprehensive loss | -50,765 | -55,433 |
Total shareholders' equity | 247,342 | 254,627 |
Total liabilities and shareholders' equity | $1,066,040 | $1,204,121 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Shareholders' equity: | ' | ' |
Preferred stock par value (in Dollars per share) | $1 | $1 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Common stock par value (in Dollars per share) | $0.01 | $0.01 |
Common stock shares authorized | 100,000,000 | 100,000,000 |
Common stock shares issued | 36,060,869 | 35,866,549 |
Common stock shares outstanding | 36,060,869 | 35,866,549 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Revenues | ' | ' | ' | ' |
Coal sales revenue | $143,338 | $264,633 | $469,796 | $804,024 |
Freight and handling revenue | 6,824 | 23,469 | 33,822 | 63,421 |
Total revenue | 150,162 | 288,102 | 503,618 | 867,445 |
Cost of sales: | ' | ' | ' | ' |
Cost of coal sold | 138,897 | 244,365 | 444,852 | 705,568 |
Freight and handling costs | 6,824 | 23,469 | 33,822 | 63,421 |
Depreciation, depletion and amortization | 28,520 | 35,518 | 86,725 | 98,152 |
Total cost of sales | 174,241 | 303,352 | 565,399 | 867,141 |
Gross profit (loss) | -24,079 | -15,250 | -61,781 | 304 |
Selling, general and administrative expenses | 13,260 | 14,672 | 40,917 | 45,504 |
Total operating loss | -37,339 | -29,922 | -102,698 | -45,200 |
Interest expense | 12,058 | 13,200 | 36,940 | 40,112 |
Interest income | -88 | -217 | -373 | -602 |
Gain on debt transactions (note 2) | -23,889 | -22,231 | -125,099 | -22,231 |
Miscellaneous income, net | -98 | -147 | -331 | -580 |
Total other (income) expense, net | -12,017 | -9,395 | -88,863 | 16,699 |
Net loss before income taxes | -25,322 | -20,527 | -13,835 | -61,899 |
Income tax expense | 190 | 25 | 1,164 | 75 |
Net loss | ($25,512) | ($20,552) | ($14,999) | ($61,974) |
Earnings (loss) per common share (note 6) | ' | ' | ' | ' |
Basic earnings (loss) per common share | ($0.73) | ($0.59) | ($0.43) | ($1.78) |
Diluted earnings (loss) per common share | ($0.73) | ($0.59) | ($0.43) | ($1.78) |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Loss (unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net loss | ($25,512) | ($20,552) | ($14,999) | ($61,974) |
Other comprehensive income | ' | ' | ' | ' |
Amortization of pension actuarial amount | 1,019 | 836 | 3,058 | 2,507 |
Amortization of black lung actuarial amount | 537 | 386 | 1,610 | 1,158 |
Other comprehensive income | 1,556 | 1,221 | 4,668 | 3,665 |
Comprehensive loss | ($23,956) | ($19,330) | ($10,331) | ($58,309) |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Changes in Shareholders' Equity (unaudited) (USD $) | Common Stock | Additional Paid-In Capital | Retained Earnings (accumulated deficit) | Accumulated other comprehensive income (loss) | Total |
In Thousands, except Share data | |||||
Beginning Balance, Amount at Dec. 31, 2011 | $357 | $541,362 | ($97,682) | ($47,375) | $396,662 |
Beginning Balance, Shares at Dec. 31, 2011 | 35,672,000 | ' | ' | ' | ' |
Net loss | ' | ' | -138,906 | ' | -138,906 |
Other comprehensive income/loss | ' | ' | ' | -8,058 | -8,058 |
Issuance of restricted stock awards, net of forfeitures, Amount | 3 | -3 | ' | ' | ' |
Issuance of restricted stock awards, net of forfeitures, Shares | 288,000 | ' | ' | ' | ' |
Repurchase of shares for tax withholding, Amount | -1 | -289 | ' | ' | -290 |
Repurchase of shares for tax withholding, Shares | -93,000 | ' | ' | ' | ' |
Stock based compensation | ' | 5,219 | ' | ' | 5,219 |
Ending Balance, Amount at Dec. 31, 2012 | 359 | 546,289 | -236,588 | -55,433 | 254,627 |
Ending Balance, Shares at Dec. 31, 2012 | 35,867,000 | ' | ' | ' | ' |
Net loss | ' | ' | -14,999 | ' | -14,999 |
Other comprehensive income/loss | ' | ' | ' | 4,668 | ' |
Issuance of restricted stock awards, net of forfeitures, Amount | 3 | -3 | ' | ' | ' |
Issuance of restricted stock awards, net of forfeitures, Shares | 310,000 | ' | ' | ' | ' |
Repurchase of shares for tax withholding, Amount | -1 | -359 | ' | ' | ' |
Repurchase of shares for tax withholding, Shares | -116,000 | ' | ' | ' | ' |
Stock based compensation | ' | 3,406 | ' | ' | 3,406 |
Ending Balance, Amount at Sep. 30, 2013 | $361 | $549,333 | ($251,587) | ($50,765) | $247,342 |
Ending Balance, Shares at Sep. 30, 2013 | 36,061,000 | ' | ' | ' | ' |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements of Cash Flows (unaudited) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Cash flows from operating activities: | ' | ' |
Net loss | ($14,999) | ($61,974) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities | ' | ' |
Depreciation, depletion, and amortization | 86,725 | 98,152 |
Accretion of asset retirement obligations | 3,355 | 3,948 |
Amortization of debt discount and issue costs | 10,180 | 12,914 |
Stock-based compensation | 3,406 | 3,808 |
Gain on sale or disposal of property, plant and equipment | -52 | -121 |
Gain on debt transaction | -125,099 | -22,231 |
Changes in operating assets and liabilities: | ' | ' |
Receivables | 37,607 | 12,239 |
Inventories | -29,662 | 16,084 |
Prepaid royalties and other current assets | 1,474 | -760 |
Restricted cash | -123 | -114 |
Other assets | 1,855 | 5,202 |
Accounts payable | -19,012 | -34,802 |
Accrued salaries, wages, and employee benefits | 1,089 | 2,308 |
Accrued taxes | 1,460 | -1,256 |
Other current liabilities | 5,956 | -1,014 |
Workers' compensation benefits | 1,547 | 3,389 |
Black lung benefits | 3,136 | 3,596 |
Pension obligations | 350 | -153 |
Asset retirement obligations | -1,208 | -495 |
Other liabilities | -6 | -224 |
Net cash provided by (used in) operating activities | -32,021 | 38,496 |
Cash flows from investing activities: | ' | ' |
Additions to property, plant, and equipment | -29,866 | -66,466 |
Proceeds from sale of property, plant and equipment | 475 | 610 |
Net cash used in investing activities | -29,391 | -65,856 |
Cash flows from financing activities: | ' | ' |
Repayment of long-term debt | -33 | -20,916 |
Debt issuance costs | -5,734 | 0 |
Net cash used in financing activities | -5,767 | -20,916 |
Decrease in cash and cash equivalents | -67,179 | -48,276 |
Cash and cash equivalents at beginning of period | 127,386 | 199,711 |
Cash and cash equivalents at end of period | $60,207 | $164,835 |
1_Summary_of_Significant_Accou
1. Summary of Significant Accounting Policies and Other Information | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Accounting Policies [Abstract] | ' | ||||||||
Note 1 - Summary of Significant Accounting Policies and Other Information | ' | ||||||||
Description of Business and Principles of Consolidation | |||||||||
James River Coal Company and its wholly owned subsidiaries (collectively, the Company) mine, process and sell thermal and metallurgical coal through six active mining complexes located throughout eastern Kentucky, southern West Virginia and southern Indiana. In September 2013, the Company idled McCoy Elkhorn and Bledsoe, two of its then eight active mining complexes, due to continued weakness in the domestic and international coal markets. The McCoy Elkhorn and Bledsoe mines along with a surface mine that was also idled, produced approximately 1.4 million tons of coal in 2013. In the fourth quarter of 2013, after continued review of the coal markets, the Company announced the termination of 525 full time employees associated with the idled operations. As a result of these actions, the Company anticipates paying approximately $5.8 million in severance related costs during the fourth quarter of 2013. The estimated severance related costs will be included in the Company’s results in the fourth quarter of 2013 and are subject to a number of assumptions, actual results may differ materially, and additional charges not currently expected may be incurred in connection with or as a result of these reductions. On November 6th, the Company idled its Blue Diamond – Buckeye complex and furloughed the employees. We expect the Blue Diamond – Buckeye complex, which produced 1.0 million tons in the first nine months of 2013, to restart in 2014 depending on market conditions. The McCoy Elkhorn, Bledsoe and Blue Diamond – Buckeye mining complexes are included in our Central Appalachia segment. The Company continues to monitor the coal markets to determine if additional adjustments to its coal operations and administrative costs are necessary. | |||||||||
Substantially all coal sales and account receivables relate to the utility industry, steel industry and industrial markets. | |||||||||
The interim condensed consolidated financial statements of the Company presented in this report are unaudited. All significant intercompany balances and transactions have been eliminated in consolidation. The results of operations for any interim period are not necessarily indicative of the results to be expected for the full year. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto for the year ended December 31, 2012. The balances presented as of or for the year ended December 31, 2012 are derived from the Company’s audited consolidated financial statements. | |||||||||
Management of the Company has made a number of estimates and assumptions relating to the reporting of assets, liabilities, revenues and expenses and the disclosure of contingent assets and liabilities in order to prepare these consolidated financial statements in conformity with U.S. generally accepted accounting principles (U.S. GAAP). Significant estimates made by management include the allowance for non-recoupable prepaid royalties, the valuation of inventory, the valuation allowance for deferred tax assets, recoverability of long-lived assets, asset retirement obligations and amounts accrued related to the Company’s workers’ compensation, black lung, pension and health claim obligations. Actual results could differ from these estimates. In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments, consisting of normal recurring accruals, which are necessary to present fairly the consolidated financial position of the Company and the consolidated results of its operations and cash flows for all periods presented. | |||||||||
Cash and Cash Equivalents and Restricted Cash and Short Term Investments | |||||||||
Cash and cash equivalents and restricted cash and short term investments are stated at cost. Cash equivalents consist of highly-liquid investments with an original maturity of three months or less when purchased. Restricted cash and short term investments consist of cash, cash equivalents and investments in bonds and certificates of deposit. The Company intends to hold all investments held as restricted cash until maturity. The restricted cash and short term investments are maintained in collateral accounts which provide the Company additional capacity under the Revolver to support its outstanding letters of credit (note 2) and to support the issuance of surety bonds. | |||||||||
Property, Plant, and Equipment, net | |||||||||
Property, plant and equipment are as follows (in thousands): | |||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Property, plant, and equipment, at cost: | |||||||||
Land | $ | 10,112 | 10,112 | ||||||
Mineral rights | 613,872 | 614,672 | |||||||
Buildings, machinery and equipment | 677,949 | 652,565 | |||||||
Mine development costs | 60,155 | 60,314 | |||||||
Total property, plant, and equipment | 1,362,088 | 1,337,663 | |||||||
Less accumulated depreciation, depletion, and amortization | 571,390 | 482,446 | |||||||
Property, plant and equipment, net | $ | 790,698 | 855,217 | ||||||
Other Current Liabilities | |||||||||
Other current liabilities are as follows (in thousands): | |||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Accrued interest and bank fees | $ | 16,048 | 7,944 | ||||||
Current portion of asset retirement obligation | 5,901 | 5,989 | |||||||
Accrued royalties | 3,834 | 5,639 | |||||||
Other | 2,559 | 2,552 | |||||||
$ | 28,342 | 22,124 | |||||||
Recent Accounting Pronouncements | |||||||||
Effective January 1, 2013, the Company adopted guidance requiring disclosures regarding the reporting of reclassifications out of accumulated other comprehensive income. The disclosures require an entity to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income but only if the amount reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. In addition, for amounts that are not reclassified in their entirety out of accumulated comprehensive income into net income, a cross reference to other existing disclosures is required. The Company's adoption of this standard did not have a significant impact on its consolidated financial statements. | |||||||||
2_Long_Term_Debt_and_Interest_
2. Long Term Debt and Interest Expense | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Note 2 - Long Term Debt and Interest Expense | ' | ||||||||
Long-term debt is as follows (in thousands): | |||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
7.875% Senior Notes due in 2019 | $ | 270,000 | $ | 270,000 | |||||
10.0% Convertible Senior Notes due in 2018, net of discount | 102,920 | – | |||||||
4.5% Convertible Senior Notes due in 2015, net of discount | 41,976 | 120,629 | |||||||
3.125% Convertible Senior Notes due in 2018, net of discount | 10,483 | 155,778 | |||||||
Revolver | – | – | |||||||
Total long-term debt | $ | 425,379 | $ | 546,407 | |||||
7.875% Senior Notes due in 2019 | |||||||||
In 2011, the Company issued $275.0 million of senior notes due on April 1, 2019 (the 7.875% Senior Notes). During 2012, the Company repurchased $5.0 million principal amount of the 7.875% Senior Notes at a cost of $2.6 million, plus accrued interest of $0.1 million, in open market purchases. | |||||||||
The 7.875% Senior Notes are unsecured and accrue interest at 7.875% per annum. Interest payments on the 7.875% Senior Notes are required semi-annually. The Company may redeem the 7.875% Senior Notes, in whole or in part, at any time on or after April 1, 2015 at redemption prices ranging from 103.938% beginning April 1, 2015 to 100% beginning on April 1, 2017. In addition, at any time prior to April 1, 2014, the Company may redeem up to 35% of the principal amount of the 7.875% Senior Notes with the net cash proceeds of a public equity offering at a redemption price of 107.875%, plus accrued and unpaid interest to the redemption date. | |||||||||
The 7.875% Senior Notes limit the Company’s ability, among other things, to pay cash dividends. In addition, if a change of control occurs (as defined in the Indenture), each holder of the 7.875% Senior Notes will have the right to require the Company to repurchase all or a part of the 7.875% Senior Notes at a price equal to 101% of their principal amount, plus any accrued interest to the date of repurchase. | |||||||||
10.0% convertible senior notes due in 2018 | |||||||||
In 2013, the Company issued a total of $142.5 million principal amount of 10.0% convertible senior notes due 2018 (the 10.0% Convertible Senior Notes) in separate exchange transactions in September and May of 2013. | |||||||||
In the September 2013 exchange transaction, the Company issued $19.3 million principal amount of 10.0% Convertible Senior Notes in exchange for $3.9 million principal amount of our 4.5% Convertible Senior Notes and $38.3 million principal amount of our 3.125% Convertible Senior Notes (the Public Exchange Transaction). The Public Exchange Transaction resulted in a gain of $23.9 million, which includes the write-off of $0.6 million of unamortized financing costs. The Company recorded $1.0 million of financing costs associated with the Public Exchange Transaction. | |||||||||
In the May 2013 exchange transaction, the Company issued $123.3 million principal amount of the 10.0% Convertible Senior Notes in exchange for $90.0 million principal amount of our 4.5% Convertible Senior Notes and $153.4 million principal amount of our 3.125% Convertible Senior Notes (the Private Exchange Transactions). The Private Exchange Transactions resulted in a gain of $101.2 million, which includes the write-off of $3.6 million of unamortized financing costs. The Company recorded $4.8 million of financing costs associated with the Private Exchange Transactions. | |||||||||
Upon completion of the Public and Private Exchange Transactions the Company has $142.6 million principal amount of the 10% Convertible Senior Notes outstanding. The 10.0% Convertible Senior Notes are shown net of a $39.6 million discount as of September 30, 2013. The discount on the 10.0% Convertible Senior Notes is based on the fair value at the time of issuance, resulting in a weighted average effective interest rate of 18.8% at September 30, 2013. The fair value of the 10.0% Convertible Senior Notes at issuance was determined based on market data available for the convertible notes received in the Private Exchange Transaction, and the market data available for the 10.0% Convertible Senior Notes in the Public Exchange Transaction. Interest on the 10.0% Convertible Senior Notes is paid semi-annually. | |||||||||
The 10.0% Convertible Senior Notes are unsecured and are convertible at the option of the holder into shares of Company common stock at an initial conversion rate of 200 shares per $1,000 in original principal amount of the 10.0% Convertible Senior Notes, which is equal to an initial conversion price of $5.00 per share (the Conversion Price). | |||||||||
The Company can elect to convert the 10.0% Convertible Senior Notes in whole or in part at any time the weighted average price of the Company’s common stock equals or exceeds 150% of the Conversion Price then in effect for at least 20 trading days in any 30 trading day period, ending within five trading days prior to the date of the conversion notice. | |||||||||
4.5% Convertible Senior Notes due in 2015 | |||||||||
In 2009, the Company issued $172.5 million of 4.5% convertible senior notes due on December 1, 2015 (the 4.5% Convertible Senior Notes). During 2012, the Company repurchased $31.3 million principal amount of the 4.5% Convertible Senior Notes at a cost of $13.3 million, plus accrued interest of $0.4 million, in open market purchases. In 2013, the Company issued $58.2 million principal amount of 10.0% Convertible Senior Notes in exchange for $93.9 million principal amount of the 4.5% Convertible Senior Notes in the Public and Private Exchange Transactions. As of September 30, 2013, $47.3 million in aggregate principal amount of the 4.5% Convertible Senior Notes remained outstanding. | |||||||||
The 4.5% Convertible Senior Notes are shown net of a $5.3 million and a $20.5 million discount as of September 30, 2013 and December 31, 2012, respectively. The discount on the 4.5% Convertible Senior Notes relates to the proceeds that were allocated to the equity component of the 4.5% Convertible Senior Notes at issuance, resulting in an effective interest rate of 10.2%. The 4.5% Convertible Senior Notes are unsecured and are convertible under certain circumstances and during certain periods at an initial conversion rate of 38.7913 shares of the Company’s common stock per $1,000 principal amount of the 4.5% Convertible Senior Notes, representing an initial conversion price of approximately $25.78 per share of the Company’s stock. Interest on the 4.5% Convertible Senior Notes is paid semi-annually. | |||||||||
None of the 4.5% Convertible Senior Notes are currently eligible for conversion. The 4.5% Convertible Senior Notes are convertible at the option of the holders (with the length of time the 4.5% Convertible Senior Notes are convertible being dependent upon the conversion trigger) upon the occurrence of any of the following events: | |||||||||
· | At any time from September 1, 2015 until December 1, 2015; | ||||||||
· | If the closing sale price of the Company’s common stock for each of 20 or more trading days in a period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter exceeds 130% of the conversion price of the 4.5% Convertible Senior Notes in effect on the last trading day of the immediately preceding calendar quarter; | ||||||||
· | If the trading price of the 4.5% Convertible Senior Notes for each trading day during any five consecutive business day period, as determined following a request of a holder of Notes, was equal to or less than 97% of the “Conversion Value” of the 4.5% Convertible Senior Notes on such trading day; or | ||||||||
· | If the Company elects to make certain distributions to the holders of its common stock or engage in certain corporate transactions. | ||||||||
3.125% convertible senior notes due in 2018 | |||||||||
In 2011, the Company issued $230.0 million of 3.125% convertible senior notes due on March 15, 2018 (the 3.125% Convertible Senior Notes). During 2012, the Company repurchased $25.0 million principal amount of the 3.125% Convertible Senior Notes at a cost of $8.0 million, plus accrued interest of $0.3 million, in open market purchases. In 2013, the Company issued $84.3 million principal amount of 10.0% Convertible Senior Notes in exchange for $191.7 million principal amount of the 3.125% Convertible Senior Notes in the Exchange Transaction. As of September 30, 2013, $13.3 million in aggregate principal amount of the 3.125% Convertible Senior Notes remained outstanding. | |||||||||
The 3.125% Convertible Senior Notes are shown net of a $2.8 million and a $49.2 million discount as of September 30, 2013 and December 31, 2012, respectively. The discount on the 3.125% Convertible Senior Notes relates to the proceeds that were allocated to the equity component of the 3.125% Convertible Senior Notes at issuance, resulting in an effective interest rate of 8.9%. The 3.125% Convertible Senior Notes are unsecured and are convertible under certain circumstances and during certain periods at an initial conversion rate of 32.7332 shares of the Company’s common stock per $1,000 principal amount of 3.125% Convertible Senior Notes, representing an initial conversion price of approximately $30.55 per share of the Company’s stock. Interest payments on the 3.125% Convertible Senior Notes are required semi-annually. | |||||||||
None of the 3.125% Convertible Senior Notes are currently eligible for conversion. The 3.125% Convertible Senior Notes are convertible at the option of the holders (with the length of time the 3.125% Convertible Senior Notes are convertible being dependent upon the conversion trigger) upon the occurrence of any of the following events: | |||||||||
· | At any time from December 15, 2017 until March 15, 2018; | ||||||||
· | If the closing sale price of the Company’s common stock for each of 20 or more trading days in a period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter exceeds 130% of the conversion price of the 3.125% Convertible Senior Notes in effect on the last trading day of the immediately preceding calendar quarter; | ||||||||
· | If the trading price of the 3.125% Convertible Senior Notes for each trading day during any five consecutive business day period, as determined following a request of a holder of 3.125% Convertible Senior Notes, was equal to or less than 97% of the “Conversion Value” of the Notes on such trading day; or | ||||||||
· | If the Company elects to make certain distributions to the holders of its common stock or engage in certain corporate transactions. | ||||||||
Revolving Credit Agreement | |||||||||
The following is a summary of the significant terms of the Company’s Revolving Credit Agreement (the Revolver). | |||||||||
Maturity | 30-Jun-15 | ||||||||
Interest Rate | Company’s option of Base Rate (a) plus 2.25% or LIBOR plus 3.25% per annum. | ||||||||
Maximum Availability | Lesser of $100.0 million or the borrowing base(b) | ||||||||
Periodic Principal Payments | None | ||||||||
(a) | Base rate is the higher of (1) the Federal Fund Rate plus 0.5%, (2) the prime rate and (3) a three month LIBOR rate plus a percentage as defined in the agreement. | ||||||||
(b) | The Revolver’s borrowing base is based on the sum of 90% of the Company’s eligible accounts receivable plus 65% of the eligible inventory (not to exceed $40.0 million) less reserves from time to time set by the administrative agent. The eligible accounts receivable and inventories are further adjusted as specified in the Revolver and the eligible inventory currently excludes certain inventories of our subsidiaries in West Virginia. The Company’s borrowing base can also be increased by 95% of any cash collateral that the Company maintains in a cash collateral account. | ||||||||
The Revolver provides that the Company can use the Revolver availability to issue letters of credit. The Revolver provides for a 3.5% fee on any outstanding letters of credit issued under the Revolver and a 0.5% fee on the unused portion of the Revolver. Subject to certain exceptions as provided for in the Revolver, the Company is required to make certain mandatory prepayments on outstanding loans and to cash collateralize outstanding letters of credit from certain asset sales, casualty events, incurrence of indebtedness and equity issuances and extraordinary receipts. The Revolver includes financial covenants that require the Company to maintain a minimum Fixed Charge Coverage Ratio of 1.10 to 1.00 and limit capital expenditures, each as defined by the agreement. The minimum Fixed Charge Coverage Ratio is only applicable if the sum of the Company’s unrestricted cash plus the availability under the Revolver falls below $35.0 million and would remain in effect until the sum of the Company’s unrestricted cash plus the availability under the Revolver exceeds $35.0 million for 90 consecutive days. If required to be measured, the Company’s actual Fixed Charge Coverage Ratio for the period ended September 30, 2013 of -1.63 to 1.00 would not meet the required minimum Fixed Charge Ratio requirement under the Revolver. The limit on capital expenditures, of $105 million for the year ended December 31, 2013, is only applicable if the Company’s unrestricted cash plus the availability under the Revolver falls below $50.0 million for a period of 5 consecutive days and would remain in effect until the Company’s unrestricted cash plus the availability under the Revolver exceeds $50.0 million for 90 consecutive days. These financial covenants were not applicable for the period ended September 30, 2013, as our unrestricted cash plus the availability under the Revolver of $71.0 million exceeded the measurement thresholds. | |||||||||
As of September 30, 2013, the Company had used $64.7 million of the $75.5 million then available under the Revolver to secure outstanding letters of credit. As of September 30, 2013, the Company had $28.1 million of cash in a restricted cash collateral account to ensure that the Company has adequate capacity under the Revolver to support its outstanding letters of credit. | |||||||||
Interest Expense and Other | |||||||||
During the three and nine months ended September 30, 2013, the Company made cash interest payments of $0.9 million and $18.7 million, respectively. During the three and nine months ended September 30, 2012, the Company made cash interest payments of $4.3 million and $22.6 million respectively. | |||||||||
The Company was in compliance with all of the financial covenants under its outstanding debt instruments as of September 30, 2013. However, if the Company’s unrestricted cash plus the availability under its Revolver falls below $35.0 million, it would be required to maintain a minimum Fixed Charge Ratio under the Revolver, which the Company would not have met as of September 30, 2013. If the Company falls below the $35 million availability threshold and fails to meet the Fixed Charge Coverage Ratio under the Revolver, this failure would constitute a default under the Revolver, permitting the lenders or the administrative agent under the Revolver (if they are unwilling to waive such default) to accelerate the obligations thereunder. If the obligation under our Revolver were to be accelerated, then the indenture trustees under our existing indentures (or holders of 25% of such indenture notes) could declare a cross default under those indentures (if the Revolver lenders did not rescind such prior notice of acceleration within 30 days), and could accelerate all our payment obligations under these indentures. The Company projects that currently available cash, cash generated from operations and borrowings under our Revolver will be sufficient to meet its working capital requirements, anticipated capital expenditures and scheduled debt payments throughout 2013. However, the Company’s cash position beyond 2013 will depend on numerous factors such as the market for our coal, capital expenditures and commodity costs. Absent improvements to current market conditions, the Company would likely need to secure additional sources of liquidity to avoid falling below the $35 million cash requirement in its Revolver sometime during the first half of 2014. Prior to reaching these cash levels, the Company would likely take actions, in addition to those taken to date, to further reduce its usage of cash to levels consistent with the constraints imposed by our available cash flow. In addition to or in combination with measures to reduce cash usage, which could include changes in our business to limit growth, reductions in capital expenditures, the sale of assets, or additional reductions or curtailments of some of our operations, the Company is exploring options to raise additional liquidity through debt or equity financing. The Company’s ability to seek additional debt or equity financing may be limited by its existing and any future financing arrangements, economic and financial conditions, or all three. In particular, the Revolver restricts the Company’s ability to incur additional indebtedness, and the Company’s 7.875% Senior Note Indenture also restricts the incurrence of debt but allows for $75.0 million of additional senior secured financing without any consents from note holders. The Company cannot provide assurance that any reductions in our planned expenditures or in our expansion would be sufficient to cover shortfalls in available cash or that asset sales or additional debt or equity financing would be available on terms acceptable to us, if at all. | |||||||||
The Company’s ongoing ability to satisfy working capital requirements and debt service obligations (including refinancing debt that matures in 2015), or fund planned capital expenditures, will substantially depend upon our future operating performance, debt covenants, and financial, market, business and other factors, some of which are beyond our control. | |||||||||
Principal and interest payments on the 7.875% Senior Notes and the 10.0% Convertible Senior Notes are guaranteed by each of James River Coal Company’s subsidiaries. James River Coal Company has no independent assets or operations (as defined in Rule 3-10(h)(5) of Regulation S-X) aside from those of its subsidiaries. The guarantees are full and unconditional and joint and several obligations (as such terms are defined in Rule 3-10(h)(5) of Regulation S-X) issued by all of James River Coal Company’s subsidiaries. Accordingly, pursuant to Rule 3-10(f) of Regulation S-X, separate financial information with respect to the subsidiaries of James River Coal Company have not been provided. |
3_Equity
3. Equity | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Stockholders' Equity Note [Abstract] | ' | ||||||||||||||||
Note 3 - Equity | ' | ||||||||||||||||
Equity Based Compensation | |||||||||||||||||
The following is a summary of equity based compensation expense (in thousands): | |||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Restricted stock | $ | 988 | 1,055 | 3,258 | 3,611 | ||||||||||||
Stock options | 40 | 57 | 148 | 197 | |||||||||||||
Stock based compensation | $ | 1,028 | 1,112 | 3,406 | 3,808 | ||||||||||||
The following is a summary of activity related to restricted stock and stock option awards: | |||||||||||||||||
Restricted Stock | Stock Options | ||||||||||||||||
Weighted | Weighted | ||||||||||||||||
Average | Average | ||||||||||||||||
Number of | Fair Value | Number of | Exercise | ||||||||||||||
Shares | at Issue | Shares | Price | ||||||||||||||
31-Dec-12 | 979,846 | $ | 14.89 | 331,000 | $ | 16.11 | |||||||||||
Granted | 324,416 | 2.32 | 25,000 | 2.32 | |||||||||||||
Vested/Exercised | (325,750 | ) | 19.01 | – | – | ||||||||||||
Canceled | (14,467 | ) | (13.32 | ) | – | – | |||||||||||
30-Sep-13 | 964,045 | 9.27 | 356,000 | 15.14 | |||||||||||||
Common Shares Reserved for 10.0% Convertible Senior Notes | |||||||||||||||||
The Company has reserved 28.5 million of its authorized but unissued shares of common stock for the potential conversion of its 10.0% Convertible Senior Notes. The 10.0% Convertible Senior Notes are convertible at the option of the holder at a Conversion Price of $5.00 per share. |
4_Commitments_and_Contingencie
4. Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Note 4 - Commitments and Contingencies | ' |
The Company has established irrevocable letters of credit totaling $64.7 million as of September 30, 2013, to guarantee performance under certain contractual arrangements. The letters of credit have been issued under the Revolver (note 2). | |
The Company is involved in various claims and legal actions arising in the ordinary course of business. In the opinion of management, the ultimate disposition of these matters will not have a material adverse effect on the Company’s consolidated financial position, results of operations or liquidity. |
5_Accumulated_Other_Comprehens
5. Accumulated Other Comprehensive Loss | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Accumulated Other Comprehensive Loss | ' | ||||||||||||
Note 5 - Accumulated Other Comprehensive Loss | ' | ||||||||||||
The following is a summary of the changes in accumulated other comprehensive loss by component (in thousands): | |||||||||||||
Defined | |||||||||||||
Benefit | Pneumoconiosis | ||||||||||||
Plans | Benefits | Total | |||||||||||
1-Jan-12 | $ | (31,304 | ) | (16,071 | ) | (47,375 | ) | ||||||
Other comprehensive income before reclassifications | – | – | – | ||||||||||
Amounts reclassified from accumulated other comprehensive income (a) | 2,507 | 1,158 | 3,665 | ||||||||||
Net current period other comprehensive income | 2,507 | 1,158 | 3,665 | ||||||||||
30-Sep-12 | $ | (28,797 | ) | (14,913 | ) | (43,710 | ) | ||||||
1-Jan-13 | $ | (37,511 | ) | (17,922 | ) | (55,433 | ) | ||||||
Other comprehensive income before reclassifications | – | – | – | ||||||||||
Amounts reclassified from accumulated other comprehensive income (a) | 3,058 | 1,610 | 4,668 | ||||||||||
Net current period other comprehensive income | 3,058 | 1,610 | 4,668 | ||||||||||
30-Sep-13 | $ | (34,453 | ) | (16,312 | ) | (50,765 | ) | ||||||
(a) The accumulated other comprehensive components for defined benefit plans and pneumoconiosis benefits are net actuarial losses which are included in the computation of net periodic benefit costs. See notes 7 and 8 for additional details. |
6_Earnings_Loss_per_Share
6. Earnings (Loss) per Share | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Earnings Per Share, Basic, Other Disclosures [Abstract] | ' | ||||||||||||||||
Note 6 - Earnings (Loss) per Share | ' | ||||||||||||||||
Basic earnings (loss) per share is computed by dividing net income (loss) available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted earnings (loss) per share is calculated based on the weighted average number of common shares outstanding during the period and, when dilutive, potential common shares from the exercise of stock options and restricted common stock subject to continuing vesting requirements, pursuant to the treasury stock method and conversion of convertible debt, pursuant to the if-converted method. | |||||||||||||||||
The following table provides a reconciliation of the number of shares used to calculate basic and diluted earnings (loss) per share (in thousands): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Basic earnings (loss) per common share: | |||||||||||||||||
Net income (loss) | $ | (25,512 | ) | (20,552 | ) | $ | (14,999 | ) | $ | (61,974 | ) | ||||||
Income allocated to participating securities | – | – | – | – | |||||||||||||
Net income (loss) available to common shareholders | $ | (25,512 | ) | (20,552 | ) | $ | (14,999 | ) | (61,974 | ) | |||||||
Weighted average number of common and | |||||||||||||||||
common equivalent shares outstanding: | |||||||||||||||||
Basic number of common shares outstanding | 35,097 | 34,885 | 34,986 | 34,790 | |||||||||||||
Dilutive effect of unvested restricted stock | |||||||||||||||||
(participating securities) | – | – | – | – | |||||||||||||
Dilutive effect of stock options | – | – | – | – | |||||||||||||
Diluted number of common shares and | |||||||||||||||||
common equivalent shares outstanding | 35,097 | 34,885 | 34,986 | 34,790 | |||||||||||||
Basic earnings (loss) per common share | $ | (0.73 | ) | (0.59 | ) | $ | (0.43 | ) | $ | (1.78 | ) | ||||||
Diluted earnings (loss) per common share: | |||||||||||||||||
Net income (loss) | $ | (25,512 | ) | (20,552 | ) | $ | (14,999 | ) | $ | (61,974 | ) | ||||||
Income (loss) allocated to participating securities | – | – | – | $ | – | ||||||||||||
Net income (loss) available to potential common shareholders | $ | (25,512 | ) | (20,552 | ) | $ | (14,999 | ) | $ | (61,974 | ) | ||||||
Diluted earnings (loss) per common share | $ | (0.73 | ) | (0.59 | ) | $ | (0.43 | ) | $ | (1.78 | ) | ||||||
For periods in which there was a loss, the Company excludes from its diluted loss per common share calculation options to purchase shares and the unvested portion of time vested restricted shares, as inclusion of these securities would have reduced the net loss per common share. The excluded instruments would have increased the diluted weighted average number of common and common equivalent shares outstanding by approximately 1.0 million for both the three and nine months ended September 30, 2013. The excluded instruments would have increased the diluted weighted average number of common and common equivalent shares outstanding by approximately 1.0 million and 1.1 million for the three and nine months ended September 30, 2012, respectively. In addition, in periods of net losses, the Company has not allocated any portion of such losses to participating securities holders for its basic loss per common share calculation as such participating securities holders are not contractually obligated to fund such losses. | |||||||||||||||||
The Company’s 4.5% and 3.125% Convertible Senior Notes are convertible at the option of the holders upon the occurrence of certain events (note 2). As of September 30, 2013, none of the 4.5% and 3.125% Convertible Senior Notes had reached the specified thresholds for conversion. The 10.0% Convertible Senior Notes are convertible at any time at the option of the holders (note 2). The 10.0% Convertible Senior Notes were excluded from the three and nine months ended September 30, 2013 earnings per share calculation as their impact would be antidilutive. |
7_Pension_Expense
7. Pension Expense | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
General Discussion of Pension and Other Postretirement Benefits [Abstract] | ' | ||||||||||||||||
Note 7 - Pension Expense | ' | ||||||||||||||||
The Company has in place a defined benefit pension plan under which all benefits were frozen in 2007. The components of net periodic benefit cost are as follows (amounts in thousands): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Interest cost | $ | 912 | 885 | 2,736 | 2,655 | ||||||||||||
Expected return on plan assets | (1,167 | ) | (1,049 | ) | (3,501 | ) | (3,146 | ) | |||||||||
Recognized net actuarial loss | 1,019 | 836 | 3,058 | 2,507 | |||||||||||||
Net periodic benefit cost | $ | 764 | 672 | 2,293 | 2,016 | ||||||||||||
8_Pneumoconiosis_Black_Lung_Be
8. Pneumoconiosis (Black Lung) Benefits | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Pneumoconiosis Black Lung Benefits | ' | ||||||||||||||||
Note 8 - Pneumoconiosis (Black Lung) Benefits | ' | ||||||||||||||||
The components of net periodic benefit costs for black lung benefits are as follows (amounts in thousands): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Service cost | $ | 519 | 639 | 1,556 | 1,917 | ||||||||||||
Interest cost | 617 | 612 | 1,851 | 1,837 | |||||||||||||
Amortization of actuarial losses | 537 | 386 | 1,610 | 1,158 | |||||||||||||
Net periodic benefit cost | $ | 1,673 | 1,637 | 5,017 | 4,912 | ||||||||||||
9_Financial_Instruments
9. Financial Instruments | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Note 9 - Financial Instruments | ' | ||||||||||||||||
The estimated fair value of financial instruments has been determined by the Company using available market information. As of September 30, 2013 and December 31, 2012, except for long-term debt obligations, the carrying amounts of all financial instruments approximate their fair values due to their short maturities. | |||||||||||||||||
The carrying values and fair values of our long-term debt are as follows (in thousands): | |||||||||||||||||
30-Sep-13 | 31-Dec-12 | ||||||||||||||||
Carrying Value | Fair | Carrying | Fair | ||||||||||||||
Value | Value | Value | |||||||||||||||
7.875% Senior Notes | $ | 270,000 | $ | 91,800 | $ | 270,000 | $ | 160,650 | |||||||||
10.0% Convertible Senior Notes | 142,507 | 69,828 | – | – | |||||||||||||
4.5% Convertible Senior Notes | 47,279 | 14,184 | 141,170 | 60,703 | |||||||||||||
3.125% Convertible Senior Notes | 13,301 | 3,192 | 204,970 | 67,640 | |||||||||||||
The fair value of our senior notes and convertible senior notes are based on available market data at the date presented. The carrying value of the convertible senior notes reflected in long-term debt in the table above reflects the full face amount and has been adjusted in the Condensed Consolidated Balance Sheets for a discount (note 2). |
10_Segment_Information
10. Segment Information | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Note 10 - Segment Information | ' | ||||||||||||||||
The Company has two segments based on the coal basins in which the Company operates. These basins are located in Central Appalachia (CAPP) and in the Midwest (Midwest). The Company’s CAPP operations are located in eastern Kentucky and southern West Virginia. The Company’s Midwest operations are located in southern Indiana. The Company manages its coal sales by coal basin, not by individual mine complex. Mine operations are evaluated based on their per-ton operating costs. Operating segment information is shown below (in thousands). | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Total revenues | |||||||||||||||||
CAPP | $ | 123,607 | 260,325 | 423,549 | 786,645 | ||||||||||||
Midwest | 26,555 | 27,777 | 80,069 | 80,800 | |||||||||||||
Corporate | – | – | – | – | |||||||||||||
Total | $ | 150,162 | 288,102 | 503,618 | 867,445 | ||||||||||||
Depreciation, depletion and amortization | |||||||||||||||||
CAPP | $ | 24,806 | 31,672 | 75,201 | 86,839 | ||||||||||||
Midwest | 3,703 | 3,829 | 11,489 | 11,259 | |||||||||||||
Corporate | 11 | 17 | 35 | 54 | |||||||||||||
Total | $ | 28,520 | 35,518 | 86,725 | 98,152 | ||||||||||||
Total operating income (loss) | |||||||||||||||||
CAPP | $ | (31,937 | ) | (25,838 | ) | $ | (85,870 | ) | (28,077 | ) | |||||||
Midwest | 31 | 622 | 473 | (1,677 | ) | ||||||||||||
Corporate | (5,433 | ) | (4,706 | ) | (17,301 | ) | (15,446 | ) | |||||||||
Total | $ | (37,339 | ) | (29,922 | ) | (102,698 | ) | (45,200 | ) | ||||||||
Net earnings (loss) (1) | |||||||||||||||||
CAPP | (31,937 | ) | (25,838 | ) | (85,870 | ) | (28,077 | ) | |||||||||
Midwest | 31 | 622 | 473 | (1,677 | ) | ||||||||||||
Corporate | 6,394 | 4,664 | 70,398 | (32,220 | ) | ||||||||||||
Total | $ | (25,512 | ) | (20,552 | ) | (14,999 | ) | (61,974 | ) | ||||||||
1) | Income and expense items that are not included in operating income (loss) are not allocated to the segments. The net earnings (loss) for corporate for the three and nine months ended September 30, 2013, includes a $23.9 million and a $125.1 million gain on debt transactions (note 2), respectively. | ||||||||||||||||
September 30, | December 31, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Total Assets | |||||||||||||||||
CAPP | $ | 950,115 | 1,102,496 | ||||||||||||||
Midwest | 103,431 | 96,866 | |||||||||||||||
Corporate | 12,494 | 4,759 | |||||||||||||||
Total | $ | 1,066,040 | 1,204,121 |
1_Significant_Accounting_Polic
1. Significant Accounting Policies Other Information (Policy) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Accounting Policies [Abstract] | ' | ||||||||
Description of Business and Principles of Consolidation | ' | ||||||||
Description of Business and Principles of Consolidation | |||||||||
James River Coal Company and its wholly owned subsidiaries (collectively, the Company) mine, process and sell thermal and metallurgical coal through six active mining complexes located throughout eastern Kentucky, southern West Virginia and southern Indiana. In September 2013, the Company idled McCoy Elkhorn and Bledsoe, two of its then eight active mining complexes, due to continued weakness in the domestic and international coal markets. The McCoy Elkhorn and Bledsoe mines along with a surface mine that was also idled, produced approximately 1.4 million tons of coal in 2013. In the fourth quarter of 2013, after continued review of the coal markets, the Company announced the termination of 525 full time employees associated with the idled operations. As a result of these actions, the Company anticipates paying approximately $5.8 million in severance related costs during the fourth quarter of 2013. The estimated severance related costs will be included in the Company’s results in the fourth quarter of 2013 and are subject to a number of assumptions, actual results may differ materially, and additional charges not currently expected may be incurred in connection with or as a result of these reductions. On November 6th, the Company idled its Blue Diamond – Buckeye complex and furloughed the employees. We expect the Blue Diamond – Buckeye complex, which produced 1.0 million tons in the first nine months of 2013, to restart in 2014 depending on market conditions. The McCoy Elkhorn, Bledsoe and Blue Diamond – Buckeye mining complexes are included in our Central Appalachia segment. The Company continues to monitor the coal markets to determine if additional adjustments to its coal operations and administrative costs are necessary. | |||||||||
Substantially all coal sales and account receivables relate to the utility industry, steel industry and industrial markets. | |||||||||
The interim condensed consolidated financial statements of the Company presented in this report are unaudited. All significant intercompany balances and transactions have been eliminated in consolidation. The results of operations for any interim period are not necessarily indicative of the results to be expected for the full year. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto for the year ended December 31, 2012. The balances presented as of or for the year ended December 31, 2012 are derived from the Company’s audited consolidated financial statements. | |||||||||
Management of the Company has made a number of estimates and assumptions relating to the reporting of assets, liabilities, revenues and expenses and the disclosure of contingent assets and liabilities in order to prepare these consolidated financial statements in conformity with U.S. generally accepted accounting principles (U.S. GAAP). Significant estimates made by management include the allowance for non-recoupable prepaid royalties, the valuation of inventory, the valuation allowance for deferred tax assets, recoverability of long-lived assets, asset retirement obligations and amounts accrued related to the Company’s workers’ compensation, black lung, pension and health claim obligations. Actual results could differ from these estimates. In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments, consisting of normal recurring accruals, which are necessary to present fairly the consolidated financial position of the Company and the consolidated results of its operations and cash flows for all periods presented. | |||||||||
Cash and Cash Equivalents and Restricted Cash and Short Term Investments | ' | ||||||||
Cash and Cash Equivalents and Restricted Cash and Short Term Investments | |||||||||
Cash and cash equivalents and restricted cash and short term investments are stated at cost. Cash equivalents consist of highly-liquid investments with an original maturity of three months or less when purchased. Restricted cash and short term investments consist of cash, cash equivalents and investments in bonds and certificates of deposit. The Company intends to hold all investments held as restricted cash until maturity. The restricted cash and short term investments are maintained in collateral accounts which provide the Company additional capacity under the Revolver to support its outstanding letters of credit (note 2) and to support the issuance of surety bonds. | |||||||||
Property, Plant, and Equipment, net | ' | ||||||||
Property, Plant, and Equipment, net | |||||||||
Property, plant and equipment are as follows (in thousands): | |||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Property, plant, and equipment, at cost: | |||||||||
Land | $ | 10,112 | 10,112 | ||||||
Mineral rights | 613,872 | 614,672 | |||||||
Buildings, machinery and equipment | 677,949 | 652,565 | |||||||
Mine development costs | 60,155 | 60,314 | |||||||
Total property, plant, and equipment | 1,362,088 | 1,337,663 | |||||||
Less accumulated depreciation, depletion, and amortization | 571,390 | 482,446 | |||||||
Property, plant and equipment, net | $ | 790,698 | 855,217 | ||||||
Other Current Liabilities | ' | ||||||||
Other Current Liabilities | |||||||||
Other current liabilities are as follows (in thousands): | |||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Accrued interest and bank fees | $ | 16,048 | 7,944 | ||||||
Current portion of asset retirement obligation | 5,901 | 5,989 | |||||||
Accrued royalties | 3,834 | 5,639 | |||||||
Other | 2,559 | 2,552 | |||||||
$ | 28,342 | 22,124 | |||||||
Recent Accounting Pronouncements | ' | ||||||||
Recent Accounting Pronouncements | |||||||||
Effective January 1, 2013, the Company adopted guidance requiring disclosures regarding the reporting of reclassifications out of accumulated other comprehensive income. The disclosures require an entity to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income but only if the amount reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. In addition, for amounts that are not reclassified in their entirety out of accumulated comprehensive income into net income, a cross reference to other existing disclosures is required. The Company's adoption of this standard did not have a significant impact on its consolidated financial statements. |
1_Significant_Accounting_Polic1
1. Significant Accounting Policies Other Information (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Accounting Policies [Abstract] | ' | ||||||||
Property plant and equipment | ' | ||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Property, plant, and equipment, at cost: | |||||||||
Land | $ | 10,112 | 10,112 | ||||||
Mineral rights | 613,872 | 614,672 | |||||||
Buildings, machinery and equipment | 677,949 | 652,565 | |||||||
Mine development costs | 60,155 | 60,314 | |||||||
Total property, plant, and equipment | 1,362,088 | 1,337,663 | |||||||
Less accumulated depreciation, depletion, and amortization | 571,390 | 482,446 | |||||||
Property, plant and equipment, net | $ | 790,698 | 855,217 | ||||||
Other current liabilities | ' | ||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Accrued interest and bank fees | $ | 16,048 | 7,944 | ||||||
Current portion of asset retirement obligation | 5,901 | 5,989 | |||||||
Accrued royalties | 3,834 | 5,639 | |||||||
Other | 2,559 | 2,552 | |||||||
$ | 28,342 | 22,124 |
2_Long_Term_Debt_and_Interest_1
2. Long Term Debt and Interest Expense (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Long term debt | ' | ||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
7.875% Senior Notes due in 2019 | $ | 270,000 | $ | 270,000 | |||||
10.0% Convertible Senior Notes due in 2018, net of discount | 102,920 | – | |||||||
4.5% Convertible Senior Notes due in 2015, net of discount | 41,976 | 120,629 | |||||||
3.125% Convertible Senior Notes due in 2018, net of discount | 10,483 | 155,778 | |||||||
Revolver | – | – | |||||||
Total long-term debt | $ | 425,379 | $ | 546,407 | |||||
Revolving Credit Agreement | ' | ||||||||
Maturity | 30-Jun-15 | ||||||||
Interest Rate | Company’s option of Base Rate (a) plus 2.25% or LIBOR plus 3.25% per annum. | ||||||||
Maximum Availability | Lesser of $100.0 million or the borrowing base(b) | ||||||||
Periodic Principal Payments | None |
3_Equity_Tables
3. Equity (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Stockholders' Equity Note [Abstract] | ' | ||||||||||||||||
Equity based compensation expense | ' | ||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Restricted stock | $ | 988 | 1,055 | 3,258 | 3,611 | ||||||||||||
Stock options | 40 | 57 | 148 | 197 | |||||||||||||
Stock based compensation | $ | 1,028 | 1,112 | 3,406 | 3,808 | ||||||||||||
Summary of activity related to restricted stock and stock option awards | ' | ||||||||||||||||
Restricted Stock | Stock Options | ||||||||||||||||
Weighted | Weighted | ||||||||||||||||
Average | Average | ||||||||||||||||
Number of | Fair Value | Number of | Exercise | ||||||||||||||
Shares | at Issue | Shares | Price | ||||||||||||||
31-Dec-12 | 979,846 | $ | 14.89 | 331,000 | $ | 16.11 | |||||||||||
Granted | 324,416 | 2.32 | 25,000 | 2.32 | |||||||||||||
Vested/Exercised | (325,750 | ) | 19.01 | – | – | ||||||||||||
Canceled | (14,467 | ) | (13.32 | ) | – | – | |||||||||||
30-Sep-13 | 964,045 | 9.27 | 356,000 | 15.14 |
5_Accumulated_Other_Comprehens1
5. Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Accumulated Other Comprehensive Loss | ' | ||||||||||||
Summary of the changes in accumulated other comprehensive loss by component | ' | ||||||||||||
Defined | |||||||||||||
Benefit | Pneumoconiosis | ||||||||||||
Plans | Benefits | Total | |||||||||||
1-Jan-12 | $ | (31,304 | ) | (16,071 | ) | (47,375 | ) | ||||||
Other comprehensive income before reclassifications | – | – | – | ||||||||||
Amounts reclassified from accumulated other comprehensive income (a) | 2,507 | 1,158 | 3,665 | ||||||||||
Net current period other comprehensive income | 2,507 | 1,158 | 3,665 | ||||||||||
30-Sep-12 | $ | (28,797 | ) | (14,913 | ) | (43,710 | ) | ||||||
1-Jan-13 | $ | (37,511 | ) | (17,922 | ) | (55,433 | ) | ||||||
Other comprehensive income before reclassifications | – | – | – | ||||||||||
Amounts reclassified from accumulated other comprehensive income (a) | 3,058 | 1,610 | 4,668 | ||||||||||
Net current period other comprehensive income | 3,058 | 1,610 | 4,668 | ||||||||||
30-Sep-13 | $ | (34,453 | ) | (16,312 | ) | (50,765 | ) | ||||||
(a) The accumulated other comprehensive components for defined benefit plans and pneumoconiosis benefits are net actuarial losses which are included in the computation of net periodic benefit costs. See notes 7 and 8 for additional details. |
6_Earnings_Loss_per_Share_Tabl
6. Earnings (Loss) per Share (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Earnings Per Share, Basic, Other Disclosures [Abstract] | ' | ||||||||||||||||
Reconciliation of the number of shares used to calculate basic and diluted earnings (loss) per share | ' | ||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Basic earnings (loss) per common share: | |||||||||||||||||
Net income (loss) | $ | (25,512 | ) | (20,552 | ) | $ | (14,999 | ) | $ | (61,974 | ) | ||||||
Income allocated to participating securities | – | – | – | – | |||||||||||||
Net income (loss) available to common shareholders | $ | (25,512 | ) | (20,552 | ) | $ | (14,999 | ) | (61,974 | ) | |||||||
Weighted average number of common and | |||||||||||||||||
common equivalent shares outstanding: | |||||||||||||||||
Basic number of common shares outstanding | 35,097 | 34,885 | 34,986 | 34,790 | |||||||||||||
Dilutive effect of unvested restricted stock | |||||||||||||||||
(participating securities) | – | – | – | – | |||||||||||||
Dilutive effect of stock options | – | – | – | – | |||||||||||||
Diluted number of common shares and | |||||||||||||||||
common equivalent shares outstanding | 35,097 | 34,885 | 34,986 | 34,790 | |||||||||||||
Basic earnings (loss) per common share | $ | (0.73 | ) | (0.59 | ) | $ | (0.43 | ) | $ | (1.78 | ) | ||||||
Diluted earnings (loss) per common share: | |||||||||||||||||
Net income (loss) | $ | (25,512 | ) | (20,552 | ) | $ | (14,999 | ) | $ | (61,974 | ) | ||||||
Income (loss) allocated to participating securities | – | – | – | $ | – | ||||||||||||
Net income (loss) available to potential common shareholders | $ | (25,512 | ) | (20,552 | ) | $ | (14,999 | ) | $ | (61,974 | ) | ||||||
Diluted earnings (loss) per common share | $ | (0.73 | ) | (0.59 | ) | $ | (0.43 | ) | $ | (1.78 | ) |
7_Pension_Expense_Tables
7. Pension Expense (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
General Discussion of Pension and Other Postretirement Benefits [Abstract] | ' | ||||||||||||||||
Components of net periodic benefit cost | ' | ||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Interest cost | $ | 912 | 885 | 2,736 | 2,655 | ||||||||||||
Expected return on plan assets | (1,167 | ) | (1,049 | ) | (3,501 | ) | (3,146 | ) | |||||||||
Recognized net actuarial loss | 1,019 | 836 | 3,058 | 2,507 | |||||||||||||
Net periodic benefit cost | $ | 764 | 672 | 2,293 | 2,016 |
8_Pneumoconiosis_Black_Lung_Be1
8. Pneumoconiosis (Black Lung) Benefits (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Pneumoconiosis Black Lung Benefits | ' | ||||||||||||||||
Components of net periodic benefit costs for black lung benefits | ' | ||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Service cost | $ | 519 | 639 | 1,556 | 1,917 | ||||||||||||
Interest cost | 617 | 612 | 1,851 | 1,837 | |||||||||||||
Amortization of actuarial losses | 537 | 386 | 1,610 | 1,158 | |||||||||||||
Net periodic benefit cost | $ | 1,673 | 1,637 | 5,017 | 4,912 | ||||||||||||
9_Financial_Instruments_Tables
9. Financial Instruments (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Carrying values and fair values of long-term debt | ' | ||||||||||||||||
30-Sep-13 | 31-Dec-12 | ||||||||||||||||
Carrying Value | Fair | Carrying | Fair | ||||||||||||||
Value | Value | Value | |||||||||||||||
7.875% Senior Notes | $ | 270,000 | $ | 91,800 | $ | 270,000 | $ | 160,650 | |||||||||
10.0% Convertible Senior Notes | 142,507 | 69,828 | – | – | |||||||||||||
4.5% Convertible Senior Notes | 47,279 | 14,184 | 141,170 | 60,703 | |||||||||||||
3.125% Convertible Senior Notes | 13,301 | 3,192 | 204,970 | 67,640 |
10_Segment_Information_Tables
10. Segment Information (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Operating segment information | ' | ||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Total revenues | |||||||||||||||||
CAPP | $ | 123,607 | 260,325 | 423,549 | 786,645 | ||||||||||||
Midwest | 26,555 | 27,777 | 80,069 | 80,800 | |||||||||||||
Corporate | – | – | – | – | |||||||||||||
Total | $ | 150,162 | 288,102 | 503,618 | 867,445 | ||||||||||||
Depreciation, depletion and amortization | |||||||||||||||||
CAPP | $ | 24,806 | 31,672 | 75,201 | 86,839 | ||||||||||||
Midwest | 3,703 | 3,829 | 11,489 | 11,259 | |||||||||||||
Corporate | 11 | 17 | 35 | 54 | |||||||||||||
Total | $ | 28,520 | 35,518 | 86,725 | 98,152 | ||||||||||||
Total operating income (loss) | |||||||||||||||||
CAPP | $ | (31,937 | ) | (25,838 | ) | $ | (85,870 | ) | (28,077 | ) | |||||||
Midwest | 31 | 622 | 473 | (1,677 | ) | ||||||||||||
Corporate | (5,433 | ) | (4,706 | ) | (17,301 | ) | (15,446 | ) | |||||||||
Total | $ | (37,339 | ) | (29,922 | ) | (102,698 | ) | (45,200 | ) | ||||||||
Net earnings (loss) (1) | |||||||||||||||||
CAPP | (31,937 | ) | (25,838 | ) | (85,870 | ) | (28,077 | ) | |||||||||
Midwest | 31 | 622 | 473 | (1,677 | ) | ||||||||||||
Corporate | 6,394 | 4,664 | 70,398 | (32,220 | ) | ||||||||||||
Total | $ | (25,512 | ) | (20,552 | ) | (14,999 | ) | (61,974 | ) | ||||||||
1) | Income and expense items that are not included in operating income (loss) are not allocated to the segments. The net earnings (loss) for corporate for the three and nine months ended September 30, 2013, includes a $23.9 million and a $125.1 million gain on debt transactions (note 2), respectively. | ||||||||||||||||
September 30, | December 31, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Total Assets | |||||||||||||||||
CAPP | $ | 950,115 | 1,102,496 | ||||||||||||||
Midwest | 103,431 | 96,866 | |||||||||||||||
Corporate | 12,494 | 4,759 | |||||||||||||||
Total | $ | 1,066,040 | 1,204,121 |
1_Schedule_of_Property_Plant_a
1. Schedule of Property, Plant and Equipment (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Total property, plant, and equipment | $1,362,088 | $1,337,663 |
Less accumulated depreciation, depletion, and amortization | 571,390 | 482,446 |
Property, plant and equipment, net | 790,698 | 855,217 |
Land [Member] | ' | ' |
Total property, plant, and equipment | 10,112 | 10,112 |
Mining Properties and Mineral Rights [Member] | ' | ' |
Total property, plant, and equipment | 613,872 | 614,672 |
Machinery and Equipment [Member] | ' | ' |
Total property, plant, and equipment | 677,949 | 652,565 |
Mine Development [Member] | ' | ' |
Total property, plant, and equipment | $60,155 | $60,314 |
1_Schedule_of_Other_Current_Li
1. Schedule of Other Current Liabilities (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Accounting Policies [Abstract] | ' | ' |
Accrued interest and bank fees | $16,048 | $7,944 |
Current portion of asset retirement obligation | 5,901 | 5,989 |
Accrued royalties | 3,834 | 5,639 |
Other | 2,559 | 2,552 |
Other current liabilities | $28,342 | $22,124 |
2_Long_Term_Debt_and_Interest_2
2. Long Term Debt and Interest Expense (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Total long-term debt | $425,379 | $546,407 |
7.875% Senior Notes [Member] | ' | ' |
Total long-term debt | 270,000 | 270,000 |
10% Convertible Senior Notes | ' | ' |
Total long-term debt | 102,920 | 0 |
4.5% Convertible Senior Notes | ' | ' |
Total long-term debt | 41,976 | 120,629 |
3.125% Convertible Senior Notes | ' | ' |
Total long-term debt | 10,483 | 155,778 |
Revolving Credit Facility Member | ' | ' |
Total long-term debt | $0 | $0 |
2_Revolving_Credit_Agreement_D
2. Revolving Credit Agreement (Details) (USD $) | 9 Months Ended |
Sep. 30, 2013 | |
Debt Disclosure [Abstract] | ' |
Maturity | 30-Jun-15 |
Interest Rate | 'CompanyBs option of Base Rate (a) plus 2.25% or LIBOR plus 3.25% per annum. |
Maximum Availability | 'Lesser of $100.0 million or the borrowing base |
Periodic Principal Payments | $0 |
2_Long_Term_Debt_and_Interest_3
2. Long Term Debt and Interest Expense (Narrative) (USD $) | 3 Months Ended | 9 Months Ended | 9 Months Ended | ||||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 |
7.875% Senior Notes [Member] | 10% Convertible Senior Notes | 4.5% Convertible Senior Notes | 4.5% Convertible Senior Notes | 3.125% Convertible Senior Notes | 3.125% Convertible Senior Notes | Revolving Credit Agreement | |||||
Face amount debt issued | ' | ' | ' | ' | $270,000 | $142,600 | $47,300 | ' | $13,300 | ' | ' |
Debt maturity date | ' | ' | ' | ' | 1-Apr-19 | 1-Jun-18 | 1-Dec-15 | ' | 15-Mar-18 | ' | ' |
Original issue discount | ' | ' | ' | ' | ' | 39,600 | 5,300 | 20,500 | 2,800 | 49,200 | ' |
Debt issuance costs | ' | ' | 5,734 | 0 | ' | 5,734 | ' | ' | ' | ' | ' |
Line of credit facility in use | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 64,700 |
Credit line available | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 75,500 |
Cash in a restricted cash collateral account | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 28,100 |
Interest paid | $900 | $4,300 | $18,700 | $22,600 | ' | ' | ' | ' | ' | ' | ' |
3_Schedule_of_equity_based_com
3. Schedule of equity based compensation expense (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Stockholders' Equity Note [Abstract] | ' | ' | ' | ' | ' |
Restricted stock | $988 | $1,055 | $3,258 | $3,611 | ' |
Stock options | 40 | 57 | 148 | 197 | ' |
Stock based compensation | $1,028 | $1,112 | $3,406 | $3,808 | $5,219 |
3_Restricted_stock_and_stock_o
3. Restricted stock and stock option activity (Details) (USD $) | 9 Months Ended |
Sep. 30, 2013 | |
Restricted Stock Member | ' |
Weighted Average Fair Value at Issue Restricted stock | ' |
Beginning balance | $14.89 |
Granted | $2.32 |
Vested/Exercised | $19.01 |
Canceled | ($13.32) |
Ending balance | $9.27 |
Number of Shares- Restricted Stock | ' |
Beginning balance | 979,846 |
Granted | 324,416 |
Vested/Exercised | -325,750 |
Canceled | -14,467 |
Ending balance | 964,045 |
Stock Options Member | ' |
Number of Shares | ' |
Beginning balance | 311,000 |
Granted | 25,000 |
Vested/Exercised | ' |
Canceled | ' |
Ending balance | 356,000 |
Weighted Average Exercise Price Stock Options | ' |
Beginning balance | $16.11 |
Granted | $2.32 |
Ending balance | $15.14 |
4_Commitments_and_Contingencie1
4. Commitments and Contingencies (Narrative) (USD $) | Sep. 30, 2013 |
Commitments and Contingencies Disclosure [Abstract] | ' |
Irrevocable letters of credit | $64,700,000 |
5_Accumulated_Other_Comprehens2
5. Accumulated Other Comprehensive Loss (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Beginning Balance | ' | ' | ($55,433) | ($47,375) |
Other comprehensive income before reclassifications | ' | ' | ' | ' |
Amounts reclassified from accumulated other comprehensive income | ' | ' | 4,668 | 3,665 |
Net current period other comprehensive income | 1,556 | 1,221 | 4,668 | 3,665 |
Ending Balance | -50,765 | -43,710 | -50,765 | -43,710 |
Defined Benefit Plans | ' | ' | ' | ' |
Beginning Balance | ' | ' | -37,511 | -31,304 |
Other comprehensive income before reclassifications | ' | ' | ' | ' |
Amounts reclassified from accumulated other comprehensive income | ' | ' | 3,058 | 2,507 |
Net current period other comprehensive income | ' | ' | 3,058 | 2,507 |
Ending Balance | -34,453 | -28,797 | -34,453 | -28,797 |
Pneumoconiosis Benefits | ' | ' | ' | ' |
Beginning Balance | ' | ' | -17,922 | -16,071 |
Other comprehensive income before reclassifications | ' | ' | ' | ' |
Amounts reclassified from accumulated other comprehensive income | ' | ' | 1,610 | 1,158 |
Net current period other comprehensive income | ' | ' | 1,610 | 1,158 |
Ending Balance | ($16,312) | ($14,913) | ($16,312) | ($14,913) |
6_Earnings_Loss_per_Share_Deta
6. Earnings (Loss) per Share (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Basic earnings (loss) per common share: | ' | ' | ' | ' | ' |
Net income (loss) | ($25,512) | ($20,552) | ($14,999) | ($61,974) | ($138,906) |
Income allocated to participating securities | 0 | 0 | 0 | 0 | ' |
Net income (loss) available to common shareholders | -25,512 | -20,552 | -14,999 | -61,974 | ' |
Weighted average number of common and common equivalent shares outstanding: | ' | ' | ' | ' | ' |
Basic number of common shares outstanding | 35,097,000 | 34,885,000 | 34,986,000 | 34,790,000 | ' |
Dilutive effect of unvested restricted stock (participating securities) | 0 | 0 | 0 | 0 | ' |
Dilutive effect of stock options | 0 | 0 | 0 | 0 | ' |
Diluted number of common shares and common equivalent shares outstanding | 35,097,000 | 34,885,000 | 34,986,000 | 34,790,000 | ' |
Basic earnings (loss) per common share | ($0.73) | ($0.59) | ($0.43) | ($1.78) | ' |
Diluted earnings (loss) per common share: | ' | ' | ' | ' | ' |
Net income (loss) for diluted calculation | -25,512 | -20,552 | -14,999 | -61,974 | -138,906 |
Income (loss) allocated to participating securities | 0 | 0 | 0 | 0 | ' |
Net income (loss) available to potential common shareholders | ($25,512) | ($20,552) | ($14,999) | ($61,974) | ' |
Diluted earnings (loss) per common share | ($0.73) | ($0.59) | ($0.43) | ($1.78) | ' |
6_Earnings_Loss_per_Share_Narr
6. Earnings (Loss) per Share (Narrative) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Earnings Per Share, Basic, Other Disclosures [Abstract] | ' | ' | ' | ' |
Impact of excluded instruments on the diluted weighted average number of common shares outstanding | 1 | 1 | 1 | 1.1 |
7_Pension_Expense_Details
7. Pension Expense (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
General Discussion of Pension and Other Postretirement Benefits [Abstract] | ' | ' | ' | ' |
Interest cost | $912 | $885 | $2,736 | $2,655 |
Expected return on plan assets | -1,167 | -1,049 | -3,501 | -3,146 |
Recognized net actuarial loss | 1,019 | 836 | 3,058 | 2,507 |
Net periodic benefit cost | $764 | $672 | $2,293 | $2,016 |
8_Pneumoconiosis_Black_Lung_Be2
8. Pneumoconiosis (Black Lung) Benefits (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Pneumoconiosis Black Lung Benefits | ' | ' | ' | ' |
Service cost | $519 | $639 | $1,556 | $1,917 |
Interest cost | 617 | 612 | 1,851 | 1,837 |
Amortization of actuarial losses | 537 | 386 | 1,610 | 1,158 |
Net periodic benefit cost | $1,673 | $1,637 | $5,017 | $4,912 |
9_Financial_Instruments_Detail
9. Financial Instruments (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
7.875% Senior Notes [Member] | ' | ' |
Long term debt carrying value | $270,000 | $270,000 |
Long term debt fair value | 91,800 | 160,650 |
10% Convertible Senior Notes | ' | ' |
Long term debt carrying value | 142,507 | 0 |
Long term debt fair value | 69,828 | 0 |
4.5% Convertible Senior Notes | ' | ' |
Long term debt carrying value | 47,279 | 141,170 |
Long term debt fair value | 14,184 | 60,703 |
3.125% Convertible Senior Notes | ' | ' |
Long term debt carrying value | 13,301 | 204,970 |
Long term debt fair value | $3,192 | $67,640 |
10_Segment_Information_Details
10. Segment Information (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Total revenues | $150,162 | $288,102 | $503,618 | $867,445 | ' |
Depreciation, depletion and amortization | 28,520 | 35,518 | 86,725 | 98,152 | ' |
Total operating income (loss) | -37,339 | -29,922 | -102,698 | -45,200 | ' |
Net income (loss) | -25,512 | -20,552 | -14,999 | -61,974 | -138,906 |
CAPP [Member] | ' | ' | ' | ' | ' |
Total revenues | 123,607 | 260,325 | 423,549 | 786,645 | ' |
Depreciation, depletion and amortization | 24,806 | 31,672 | 75,201 | 86,839 | ' |
Total operating income (loss) | -31,937 | -25,838 | -85,870 | -28,077 | ' |
Net income (loss) | -31,937 | -25,838 | -85,870 | -28,077 | ' |
Midwest Member | ' | ' | ' | ' | ' |
Total revenues | 26,555 | 27,777 | 80,069 | 80,800 | ' |
Depreciation, depletion and amortization | 3,703 | 3,829 | 11,489 | 11,259 | ' |
Total operating income (loss) | 31 | 622 | 473 | -1,677 | ' |
Net income (loss) | 31 | 622 | 473 | -1,677 | ' |
Corporate Member | ' | ' | ' | ' | ' |
Total revenues | 0 | 0 | 0 | 0 | ' |
Depreciation, depletion and amortization | 11 | 17 | 35 | 54 | ' |
Total operating income (loss) | -5,433 | -4,706 | -17,301 | -15,446 | ' |
Net income (loss) | $6,394 | $4,664 | $70,398 | ($32,220) | ' |
10_Segment_Information_Assets_
10. Segment Information - Assets (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Total Assets | $1,066,040 | $1,204,121 |
CAPP [Member] | ' | ' |
Total Assets | 950,115 | 1,102,496 |
Midwest Member | ' | ' |
Total Assets | 103,431 | 96,866 |
Corporate Member | ' | ' |
Total Assets | $12,494 | $4,759 |