Exhibit 99
FOR IMMEDIATE RELEASE
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Contact:
Katharine W. Kenny
Director, Investor Relations
(804) 788-1824
MASSEY ENERGY EXECUTIVE OFFICERS CERTIFY SEC FILINGS;
2ND QUARTER EARNINGS ADJUSTED FOR HARMAN VERDICT
Richmond, Virginia, August 13, 2002 - Massey Energy Company (NYSE:MEE) today
reported that it has adjusted its previously announced second quarter earnings
to increase its legal reserve for possible future payout of the August 1, 2002
jury verdict in the Harman Mining Company trial in Boone County, West Virginia.
The charge, estimated in a written opinion by outside attorneys, is $25.6
million pre-tax or $0.23 per share after-tax. Consequently, the Company's loss
for the second quarter will total $16.2 million or $0.22 per share, versus the
previously reported profit of $0.01 per share.
The Company also announced that tomorrow it will file its Form 10-Q for the
second quarter of 2002. Don L. Blankenship, Massey Chairman and CEO, and Jeffrey
M. Jarosinski, Vice President - Finance and Chief Financial Officer will also
submit the Certification of Financial Statements to the SEC in response to the
recent SEC order covering an estimated 950 large publicly traded companies. The
sworn certifications affirm the accuracy of the Company's 2001 Form 10-K filed
on January 29, 2002, all Forms 10-Q, all reports on Form 8-K and all definitive
proxy materials filed with the SEC subsequent to the filing of the Form 10-K,
and any amendments to the foregoing.
Massey Energy Company, headquartered in Richmond, Virginia, is the fifth largest
coal producer by revenue in the United States.
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MASSEY ENERGY COMPANY
CONSOLIDATED FINANCIAL RESULTS - UNAUDITED
(in Millions, except # of employees, per share & per ton information)
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For the three months ended For the six months ended
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June 30, 2002 June 30, 2001 June 30, 2002 June 30, 2001
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Net sales $ 330.9 $ 305.0 $ 654.4 $ 617.7
Other revenue 16.8 10.0 35.1 21.3
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Total revenue 347.7 315.0 689.5 639.0
Costs and expenses
Cost of sales 304.8 259.3 594.6 516.9
Depreciation, depletion and amortization 50.1 45.0 96.9 90.1
Selling, general and administrative 9.9 9.4 15.3 18.6
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Total costs and expenses 364.8 313.7 706.8 625.6
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(Loss) Income from operations (17.1) 1.3 (17.3) 13.4
Interest income 0.7 4.1 1.7 4.9
Interest expense (8.6) (9.0) (16.4) (19.6)
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Loss before taxes (25.0) (3.6) (32.0) (1.3)
Income tax benefit (8.8) (1.3) (13.6) (0.5)
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Net earnings loss $ (16.2) $ (2.3) $ (18.4) $ (0.8)
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Loss per share
Basic $ (0.22) $ (0.03) $ (0.25) $ (0.01)
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Diluted $ (0.22) $ (0.03) $ (0.25) $ (0.01)
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Shares used to calculate loss per share
Basic 74,445 73,927 74,397 73,680
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Diluted 74,445 73,927 74,397 73,680
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EBIT $ (17.1) $ 1.3 $ (17.3) $ 13.4
EBITDA $ 33.0 $ 46.3 $ 79.6 $ 103.5
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For the three months ended For the six months ended
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June 30, 2002 June 30, 2001 June 30, 2002 June 30, 2001
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Tons sold:
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Utility 6.5 6.7 13.5 13.7
Metallurgical 2.9 3.3 5.4 6.9
Industrial 0.9 1.1 1.9 2.2
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Total tons sold 10.3 11.1 20.8 22.8
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Total tons produced 11.0 11.7 22.8 23.3
Average sales price per ton:
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Utility $ 29.61 $ 24.94 $ 28.84 $ 24.88
Metallurgical $ 36.04 $ 31.49 $ 35.99 $ 30.49
Industrial $ 36.97 $ 31.45 $ 36.91 $ 30.36
Average sales price per ton $ 32.06 $ 27.53 $ 31.42 $ 27.11
Average cash cost per ton $ 30.49 $ 24.25 $ 29.29 $ 23.50
Capital expenditures $ 47.5 $ 50.0 $ 93.6 $ 114.3
Number of employees 4,527 4,350 4,527 4,350
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June 30, 2002 December 31, 2001
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ASSETS
Cash and cash equivalents $ 2.3 $ 5.5
Other current assets 485.7 452.8
Net property, plant and equipment 1,616.6 1,619.7
Other noncurrent assets 194.8 188.5
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Total assets $ 2,299.4 $ 2,266.5
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Short term debt $ 330.5 $ 263.1
Other current liabilities 273.5 294.0
Long-Term debt - senior notes 300.0 300.0
Other noncurrent liabilities 569.7 561.7
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Total liabilities 1,473.7 1,418.8
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Total shareholders' equity 825.7 847.7
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Total liabilities and shareholders' equity $ 2,299.4 $ 2,266.5
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Note 1: The number of shares used to calculate basic loss per share is based on
the weighted average outstanding shares of Massey Energy during the respective
periods. The number of shares used to calculate diluted earnings (loss) per
share is based on the number of shares used to calculate basic earnings (loss)
per share plus the dilutive effect of options and other stock-based instruments
held by Massey employees each period. In accordance with accounting principles
generally accepted in the United States, the effect of dilutive securities was
excluded from the calculation of the diluted loss per common share in the three
months and six months ended June 30, 2002 and 2001, as such inclusion would
result in antidilution.
Note 2: Certain 2001 amounts have been reclassified to conform with the 2002
presentation.