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James River Coal Company Reports Second Quarter 2011 Operating Results

09.08.2011  |  PR Newswire

RICHMOND, Va., Aug. 9, 2011 /PRNewswire/ --

-- Earnings Per Share of $0.31 for the Second Quarter, Before Acquisition
and Recapitalization Expenses

-- Adjusted EBITDA plus acquisition costs of $54.4 Million for the Second
Quarter

-- Conference Call Slides Posted to Company Website

James River Coal Company

, today announced that it had net income of $0.8 million or $0.02 per diluted share for the second quarter of 2011 and net loss of $6.8 million or $0.22 per diluted share for the six months ended June 30, 2011. Second quarter and the six months ended June 30, 2011 results include $10.4 million or $0.29 per share and $14.4 million or $0.47 per share, respectively, of after tax charges related to the International Resource Partners LP (IRP)acquisition and refinancing of our debt. The 2011 results are compared to net income of $19.9 million or $0.71 per diluted share for the second quarter of 2010 and net income of $43.1 million or $1.56 per diluted share for the six months ended June 30, 2010.

Peter T. Socha, Chairman and Chief Executive Officer commented: 'We are very pleased with our progress this quarter. We completed the acquisition of International Resource Partners LP and its subsidiary Logan & Kanawha in mid-April. The integration of these acquisitions has gone very well. We also successfully managed several positive changes to our balance sheet. The mines had a better quarter and are continuing to adjust to several regulatory changes. Lastly, we are beginning to see much more sales and contracting activity in both Central Appalachia and the Midwest.'

FINANCIAL RESULTS

The following tables show selected operating results for the quarter and six months ended June 30, 2011 compared to the quarter and six months ended June 30, 2010 (in 000's except per ton amounts).

                             Three Months Ended  Six Months Ended June
Total Results June 30, 30,
------------- ----------------------
2011 2010 2011 2010
---- ---- ---- ----
Total Total Total Total
----- ----- ----- -----

Company and contractor
production (tons) 2,640 2,256 4,762 4,561
Coal purchased from other
sources (tons) 566 11 612 30
--- --- --- ---
Total coal available to
ship (tons) 3,206 2,267 5,374 4,591

Coal shipments (tons) 3,261 2,283 5,334 4,683
Coal sales revenue $328,182 $182,550 $492,037 $366,569
Freight and handling
revenue 23,855 495 24,582 1,077
Cost of coal sold 264,108 128,243 396,927 256,978
Freight and handling costs 23,855 495 24,582 1,077
Depreciation, depletion, &
amortization 28,210 16,209 44,245 32,567
Gross profit 35,864 38,098 50,865 77,024
Selling, general &
administrative 14,811 9,823 24,181 19,142
Acquisition costs 3,859 - 8,504 -

Adjusted EBITDA plus
acquisition costs (1) $54,449 $46,506 $78,151 $94,630

(1) Adjusted EBITDA plus acquisition costs is defined under
'Reconciliation of Non-GAAP Measures' in this release.
Adjusted EBITDA is used to determine compliance with financial
covenants in our revolving credit facility.






Segment Results Three Months Ended June 30,
--------------- ---------------------------
2011
----
CAPP Midwest
---- -------
Per Per
Total Ton Total Ton
----- ---- ----- ----

Company and contractor
production (tons) 2,023 617
Coal purchased from other
sources (tons) 566 -
--- ---
Total coal available to
ship (tons) 2,589 617

Coal shipments (tons)
Steam (tons) 1,893 641
Metallurgical (tons) 727 -
--- ---
Total Shipments (tons) 2,620 641
Coal sales revenue
Steam 169,977 89.79 27,706 43.22
Metallurgical 130,499 179.50 - -
------- ------ --- ---
Total coal sales revenue 300,476 114.69 27,706 43.22
Freight and handling
revenue 23,316 8.90 539 0.84
Cost of coal sold 240,794 91.91 23,314 36.37
Freight and handling costs 23,316 8.90 539 0.84





Segment Results Three Months Ended June 30,
--------------- ---------------------------
2010
----
CAPP Midwest
---- -------
Per Per
Total Ton Total Ton
----- ---- ----- ----

Company and contractor
production (tons) 1,568 688
Coal purchased from other
sources (tons) 11 -
--- ---
Total coal available to
ship (tons) 1,579 688

Coal shipments (tons)
Steam (tons) 1,585 698
Metallurgical (tons) - -
--- ---
Total Shipments (tons) 1,585 698
Coal sales revenue
Steam $153,560 96.88 28,990 41.53
Metallurgical - - - -
--- --- --- ---
Total coal sales revenue 153,560 96.88 28,990 41.53
Freight and handling
revenue - - 495 0.71
Cost of coal sold 104,455 65.90 23,788 34.08
Freight and handling costs - - 495 0.71






Segment
Results Six Months Ended June 30,
------- -------------------------
2011
----
CAPP Midwest
---- -------
Per Per
Total Ton Total Ton
----- ---- ----- ----

Company and contractor
production (tons) 3,478 1,284
Coal purchased from
other sources (tons) 612 -
--- ---
Total coal available to
ship (tons) 4,090 1,284

Coal shipments (tons)
Steam (tons) 3,274 1,299
Metallurgical (tons) 761 -
--- ---
Total Shipments (tons) 4,035 1,299
Coal sales revenue
Steam 303,417 92.67 53,976 41.55
Metallurgical 134,644 176.93 - -
------- ------ --- ---
Total coal sales revenue 438,061 108.57 53,976 41.55

Freight and handling
revenue 23,316 5.78 1,266 0.97

Cost of coal sold 349,493 86.62 47,434 36.52
Freight and handling
costs 23,316 5.78 1,266 0.97





Segment
Results Six Months Ended June 30,
------- -------------------------
2010
----
CAPP Midwest
---- -------
Per Per
Total Ton Total Ton
----- ---- ----- ----

Company and contractor
production (tons) 3,118 1,443
Coal purchased from
other sources (tons) 30 -
--- ---
Total coal available to
ship (tons) 3,148 1,443

Coal shipments (tons)
Steam (tons) 3,247 1,436
Metallurgical (tons) - -
--- ---
Total Shipments (tons) 3,247 1,436
Coal sales revenue
Steam $309,124 95.20 57,445 40.00
Metallurgical - - - -
--- --- --- ---
Total coal sales revenue 309,124 95.20 57,445 40.00

Freight and handling
revenue - - 1,077 0.75

Cost of coal sold 211,195 65.04 45,783 31.88
Freight and handling
costs - - 1,077 0.75



LIQUIDITY AND CASH FLOW

As of June 30, 2011, the Company had available liquidity of $229.7 million calculated as follows (in millions):

  Unrestricted Cash                        $204.7
Availability under the Revolver 88.6
Letters of Credit Issued under the
Revolver (63.6)
-----

Available Liquidity $229.7
======

Restricted Cash $29.5
=====


Capital expenditures for the second quarter were $38.2 million and $58.3 million for the six months ended June 30, 2011. Additionally, a payment of $516.0 million was made for the IRP acquisition. The base purchase price of $475.0 million for the IRP acquisition was increased by working capital (as defined in the agreement) that exceeded $18.5 million. Included in the working capital of IRP were the following: $116.9 million of accounts receivable, $16.1 million inventory and $54.6 million of accounts payable. The accounts receivable balance was collected in the normal course of business.

SALES POSITION AND MARKET COMMENTS

As of August 8, 2011, we had the following agreements to ship coal at a fixed and known price (in 000's except per ton amounts):

                                    2011 Priced
-----------
As of May 9, As of August
2011 8, 2011 Change
------------- ------------- ------
Avg
Avg Price Price Avg Price
Tons Per Ton Tons Per Ton Tons Per Ton
---- ---------- ---- -------- ---- ----------
CAPP (3) 9,550 $110.75 10,289 $110.12 739 $101.98
-------- ----- ------- ------ ------- --- -------
Midwest
(1) (2) 2,609 $42.84 2,660 $42.76 51 $38.67
-------- ----- ------ ----- ------ --- ------






2012 Priced
-----------
As of August
As of May 9, 2011 8, 2011 Change
----------------- ------------- ------
Avg Avg
Price Price
Avg Price Per Per
Tons Per Ton Tons Ton Tons Ton
---- --------- ---- ----- ---- -----
CAPP 1,665 $92.87 3,993 $83.66 2,328 $77.07
---- ----- ------ ----- ------ ----- ------
Midwest
(1) (2) 1,560 $43.42 1,524 $43.49 (36) $40.46
-------- ----- ------ ----- ------ --- ------






2013 Priced
-----------
As of May 9, As of August
2011 8, 2011 Change
------------- ------------- ------
Avg Avg
Price Price Avg Price
Tons Per Ton Tons Per Ton Tons Per Ton
---- ------- ---- ------- ---- ---------
CAPP - $- 1,337 $79.52 1,337 $79.52
---- --- --- ----- ------ ----- ------
Midwest
(1) 990 $44.10 990 $44.10 - $-
------- --- ------ --- ------ --- ---



(1) The prices for the Midwest are minimum base
price amounts adjusted for projected fuel
escalators.
(2) 36,000 tons moved from 2012 to 2011
(3) The CAPP numbers include the commitments of
IRP (excluding transportation and hauling revenue)
including a proforma amount in 2011 to include the
period prior to acquisition


2011 GUIDANCE

The guidance contained below represents forecasts, which indicate a range of possible outcomes and are provided to assist investors with the development of earnings estimates. While James River believes that these forecasts represent the best estimate of management as to future events, actual events will differ from these forecasts, and such differences could be material. These forecasts are subject to risks identified under 'forward-looking statements' below.

                                Six Months                   Guidance
Ended June 30, (July -December,
2011 2011)
--------------- -----------------
Total JRCC Operations
(In 000's except tax
rate)

Adjusted EBITDA plus
acquisition cost (1) $78,151 $95,000 to 105,000
Selling, General and
Administrative $24,181 $28,000
Depreciation,
Depletion and
Amortization $44,245 $60,000
Interest Expense $23,458 $28,000
Tax Rate $ $15%


Capital Expenditures $58,306 $85,000 (2)





Total 2011


Total JRCC Operations
(In 000's except tax
rate)

Adjusted EBITDA plus
acquisition cost (1) $173,151 to 183,151
Selling, General and
Administrative $52,181
Depreciation,
Depletion and
Amortization $104,245
Interest Expense $51,458
Tax Rate $15%


Capital Expenditures $143,306

(1) Adjusted EBITDA plus acquisition cost is defined under
'Reconciliation of Non-GAAP Measures' in this release.
Adjusted EBITDA is used to determine compliance with financial
covenants in our revolving credit facility.
(2) Includes both maintenance and growth capital expenditures.



2011 Guidance by Segment
(In 000's except per ton amounts)



Shipments
---------
CAPP Midwest
---- -------
Tonnage Tonnage
------- -------
Thermal 7,000 - 7,300 2,600 - 2,700
Metallurgical 2,000 - 2,200 - - -
----- ----- --- ---
9,000 - 9,500 2,600 - 2,700


Cash Costs (1)
--------------
CAPP Midwest
---- -------
$87.00 - 90.00 $36.00 - 37.00

(1) Cash Costs in CAPP include metallurgical coal
purchased for blending purposes



CONFERENCE CALL, WEBCAST AND REPLAY: The Company will hold a conference call with management to discuss the quarterly results on August 9, 2011 at 11:00 a.m. Eastern Time. The conference call can be accessed by dialing 877-340-2553, or through the James River Coal Company website at http://www.jamesrivercoal.com/. International callers, please dial 678-224-7860. A replay of the conference call will be available on the Company's website and also by telephone, at 855-859-2056 for domestic callers. International callers, please dial 404-537-3406: pass code 86763538.

James River Coal Company is one of the leading coal producers in Central Appalachia and the Illinois Basin. The company sells metallurgical, bituminous steam and industrial-grade coal to electric utility companies and industrial customers both domestically and internationally. The Company's operations are managed through eight operating subsidiaries located throughout eastern Kentucky, southern West Virginia and southern Indiana. Additional information about James River Coal can be found at its web site http://www.jamesrivercoal.com/

FORWARD-LOOKING STATEMENTS: Certain statements in this press release and other written or oral statements made by or on behalf of us are 'forward-looking statements' within the meaning of the federal securities laws. Statements regarding future events and developments and our future performance, as well as management's expectations, beliefs, plans, estimates or projections relating to the future, are forward-looking statements within the meaning of these laws. Forward looking statements include, without limitation, statements regarding future sales and contracting activity, projected fuel escalators and all guidance figures. These forward-looking statements are subject to a number of risks and uncertainties. These risks and uncertainties include, but are not limited to, the following: a change in the demand for coal by electric utility and industrial customers; the loss of one or more of our largest customers; inability to secure new coal supply agreements or to extend existing coal supply agreements at market prices; our dependency on railroads for transportation of a large percentage of our products; failure to exploit additional coal reserves; the risk that reserve estimates are inadequate; failure to diversify our operations; increased capital expenditures; encountering difficult mining conditions; increased costs of complying with mine health and safety regulations; bottlenecks or other difficulties in transporting coal to our customers; delays in the development of new mining projects; increased cost of raw materials; the effects of litigation, regulation and competition; lack of availability of financing sources; our compliance with debt covenants; the risk that we are unable to successfully integrate acquired assets into the business; our cash flows, results of operation or financial condition; the consummation of acquisition, disposition or financing transactions and the effect thereof on our business; governmental policies and regulatory actions; legal and administrative proceedings, settlements, investigations and claims; weather conditions or catastrophic weather-related damage; our production capabilities; availability of transportation; market demand for coal, electricity and steel; competition; our relationships with, and other conditions affecting, our customers; employee workforce factors; our assumptions concerning economically recoverable coal reserve estimates; future economic or capital market conditions; our plans and objectives for future operations and expansion or consolidation; our ability to integrate successfully operations that we have or may acquire or develop in the future, including those of IRP, or the risk that any such integration could be more difficult, time-consuming or costly than expected; the consummation of financing transactions, acquisitions or dispositions and the related effects on our business; uncertainty of our expected financial performance following completion of the IRP acquisition; disruption from the IRP acquisition making it more difficult to maintain relationships with customers, employees or suppliers; and the other risks detailed in our reports filed with the Securities and Exchange Commission (SEC). Management believes that these forward-looking statements are reasonable; however, you should not place undue reliance on such statements. These statements are based on current expectations and speak only as of the date of such statements. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of future events, new information or otherwise.

                        JAMES RIVER COAL COMPANY
AND SUBSIDIARIES
Consolidated Balance Sheets
(in thousands, except share data)



June 30, December
2011 31, 2010
--------- --------
Assets (unaudited)
Current assets:
Cash and cash equivalents $204,683 180,376
Trade receivables 138,032 59,970
Inventories:
Coal 48,600 23,305
Materials and supplies 17,754 13,690
------ ------
Total inventories 66,354 36,995
------ ------
Prepaid royalties 6,387 6,039
Other current assets 14,313 5,991
------ -----
Total current assets 429,769 289,371
------- -------
Property, plant, and equipment, net 889,982 385,652
Goodwill 26,492 26,492
Restricted cash and short term investments 29,510 23,500
Other assets 52,370 59,554
------ ------
Total assets $1,428,123 784,569
========== =======

Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable $126,214 57,300
Accrued salaries, wages, and employee
benefits 13,473 7,744
Workers' compensation benefits 9,000 9,000
Black lung benefits 2,282 2,282
Accrued taxes 8,401 4,924
Other current liabilities 22,476 16,496
------ ------
Total current liabilities 181,846 97,746
------- ------
Long-term debt, less current maturities 575,205 284,022
Other liabilities:
Noncurrent portion of workers' compensation
benefits 57,881 55,944
Noncurrent portion of black lung benefits 45,040 43,443
Pension obligations 10,602 11,968
Asset retirement obligations 96,776 43,398
Other 7,298 665
----- ---
Total other liabilities 217,597 155,418
------- -------
Total liabilities 974,648 537,186
------- -------
Commitments and contingencies
Shareholders' equity:
Preferred stock, $1.00 par value.
Authorized 10,000,000 shares - -
Common stock, $.01 par value. Authorized
100,000,000 shares; issued and outstanding
35,598,065 and 27,779,351 shares as of June
30, 2011 and December 31, 2010 356 278
Paid-in-capital 537,211 324,705
Accumulated deficit (65,408) (58,593)
Accumulated other comprehensive loss (18,684) (19,007)
------- -------
Total shareholders' equity 453,475 247,383
------- -------
Total liabilities and shareholders' equity $1,428,123 784,569
========== =======





JAMES RIVER COAL COMPANY
AND SUBSIDIARIES
Consolidated Statements of Operations
(in thousands, except per share data)
(unaudited)


Three Three
Months Months
Ended Ended
June 30, June 30,
2011 2010
--------- ---------
Revenues
Coal sales revenue $328,182 182,550
Freight and handling revenue 23,855 495
------ ---
352,037 183,045
Cost of sales:
Cost of coal sold 264,108 128,243
Freight and handling costs 23,855 495
Depreciation, depletion and
amortization 28,210 16,209
------ ------
316,173 144,947
------- -------
35,864 38,098
Selling, general and
administrative expenses 14,811 9,823
Acquisition costs 3,859 -
----- ---
17,194 28,275
------ ------
Interest expense 15,607 7,455
Interest income (128) (12)
Charges associated with
repayment of debt 740 -
Miscellaneous (income) expense,
net (181) 238
---- ---
16,038 7,681
------ -----
1,156 20,594
Income tax expense 367 744
--- ---
Net income $789 19,850
==== ======
Earnings per common share
Basic earnings per common share $0.02 0.72
===== ====
Diluted earnings per common
share $0.02 0.71
===== ====





JAMES RIVER COAL COMPANY
AND SUBSIDIARIES
Consolidated Statements of Operations
(in thousands, except per share data)
(unaudited)


Six Six
Months Months
Ended Ended
June 30, June 30,
2011 2010
--------- ---------
Revenues
Coal sales revenue $492,037 366,569
Freight and handling revenue 24,582 1,077
------ -----
Total revenue 516,619 367,646
Cost of sales:
Cost of coal sold 396,927 256,978
Freight and handling costs 24,582 1,077
Depreciation, depletion and
amortization 44,245 32,567
------ ------
Total cost of sales 465,754 290,622
------- -------
Gross profit 50,865 77,024
Selling, general and administrative
expenses 24,181 19,142
Acquisition costs 8,504 -
----- ---
Total operating income 18,180 57,882
------ ------
Interest expense 23,458 14,836
Interest income (183) (16)
Charges associated with repayment of
debt 740 -
Miscellaneous (income) expense, net (302) 196
---- ---
Total other expense, net 23,713 15,016
------ ------
Income (loss) before income taxes (5,533) 42,866
Income tax (benefit) expense 1,282 (229)
----- ----
Net income (loss) $(6,815) 43,095
======= ======
Earnings (loss) per common share
Basic earnings (loss) per common share $(0.22) 1.56
====== ====
Diluted earnings (loss) per common
share $(0.22) 1.56
====== ====





JAMES RIVER COAL COMPANY AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)


Six Six
Months Months
Ended Ended
June 30, June 30,
2011 2010
---- ----
Cash flows from operating activities:
Net income (loss) $(6,815) 43,095
Adjustments to reconcile net income
to net cash provided by operating
activities
Depreciation, depletion, and
amortization 44,245 32,567
Accretion of asset retirement
obligations 1,975 1,642
Amortization of debt discount and
issue costs 6,383 3,935
Stock-based compensation 2,648 2,870
Deferred income tax expense 2,236 -
Loss on sale or disposal of property,
plant and equipment - 318
Write-off of deferred financing
costs 740 -
Changes in operating assets and
liabilities:
Receivables 38,568 (15,588)
Inventories (10,156) 4,538
Prepaid royalties and other current
assets (878) 991
Restricted cash (6,010) 47,042
Other assets (4,991) (830)
Accounts payable 12,512 (7,061)
Accrued salaries, wages, and employee
benefits 1,369 3,507
Accrued taxes (21) 1,004
Other current liabilities 4,339 (1,126)
Workers' compensation benefits 1,937 1,505
Black lung benefits 1,881 1,823
Pension obligations (971) (1,949)
Asset retirement obligations (2,123) (461)
Other liabilities (70) 11
--- ---
Net cash provided by operating
activities 86,798 117,833
------ -------
Cash flows from investing activities:
Additions to property, plant, and
equipment (58,306) (34,113)
Payment for acquisition, net of cash
acquired (515,962) -
-------- ---
Net cash used in investing activities (574,268) (34,113)
-------- -------
Cash flows from financing activities:
Proceeds from issuance of long-term
debt 505,000 -
Repayment of long-term debt (150,000)
Net proceeds from issuance of common
stock 170,545 -
Debt issuance costs (13,768) (1,346)
------- ------
Net cash provided by (used in)
financing activities 511,777 (1,346)
------- ------
Increase in cash 24,307 82,374
Cash and cash equivalents at
beginning of period 180,376 107,931
Cash and cash equivalents at end of
period $204,683 190,305



JAMES RIVER COAL COMPANY
AND SUBSIDIARIES
Reconciliation of Non GAAP Measures
(in thousands)
(unaudited)

EBITDA is used by management to measure operating performance. We define EBITDA as net income or loss plus interest expense (net), income tax expense (benefit) and depreciation, depletion and amortization (EBITDA), to better measure our operating performance. We regularly use EBITDA to evaluate our performance as compared to other companies in our industry that have different financing and capital structures and/or tax rates. In addition, we use EBITDA in evaluating acquisition targets.

Adjusted EBITDA is defined as EBITDA as further adjusted for certain cash and non-cash charges as specified in our revolving credit facility and is used in several of the covenants in that facility. Adjusted EBITDA plus acquisition costs further adjusts Adjusted EBITDA to add back certain non-recurring costs incurred in connection with the IRP acquisition that may not reflect the trend of future results. We believe that Adjusted EBITDA plus acquisition costs presents a useful measure of our ability to service and incur debt on an ongoing basis.

EBITDA, Adjusted EBITDA, and Adjusted EBITDA plus acquisition costs are not recognized terms under GAAP and are not an alternative to net income, operating income or any other performance measures derived in accordance with GAAP or an alternative to cash flow from operating activities as a measure of operating liquidity. Because not all companies use identical calculations, this presentation of EBITDA, Adjusted EBITDA, and Adjusted EBITDA plus acquisition costs may not be comparable to other similarly titled measures of other companies. Additionally, EBITDA, Adjusted EBITDA, and Adjusted EBITDA plus acquisition costs are not intended to be a measure of free cash flow for management's discretionary use, as they do not reflect certain cash requirements such as tax payments, interest payments and other contractual obligations.

                              Three Months  Six Months
Ended Ended
------------ ----------
June June June June
30 30 30 30
2011 2010 2011 2010
---- ---- ---- ----

Net income (loss) $789 19,850 (6,815) 43,095
Income tax expense
(benefit) 367 744 1,282 (229)
Interest expense 15,607 7,455 23,458 14,836
Interest
income (128) (12) (183) (16)
Depreciation,
depletion, and
amortization 28,210 16,209 44,245 32,567
EBITDA (before
adjustments) $44,845 44,246 61,987 90,253
------- ------ ------ ------
Other adjustments
specified
in our current debt
agreement
Direct acquisition
costs 3,859 - 8,504 -
Charges associated
with repayment of
debt 740 - 740
Other 2,256 2,260 4,171 4,377
----- ----- ----- -----
Adjusted EBITDA $51,700 46,506 75,402 94,630
Write-up of IRP
inventory 2,749 - 2,749 -
Adjusted EBITDA plus
acquisition costs $54,449 46,506 78,151 94,630
======= ====== ====== ======



In addition, in this press release we have presented our earnings per share before acquisition and refinancing expenses. As we do not routinely engage in transactions of the magnitude of the IRP acquisition or the refinancing of our debt, and consequently do not regularly incur transaction-related expenses of correlative size, we believe presenting earnings per share excluding acquisition and refinancing expenses provides investors with an additional measure of our core operating performance. Charges related to the IRP acquisition and refinancing of our debt included in our results of operations are as follows:

                                                      Three
months Six months
ended ended
June 30, June 30,
2011 2011
--------- ---------
Acquisition costs 3,859 8,504
Charges associated with repayment of debt 740 740
Amortization of contracts included in
depreciation,
depletion and amortization 2,429 2,429
Write-up to Fair Market Value of IRP's inventory
at acquisition 2,749 2,749
Interest on repaid Senior Notes after new
financing completed 2,344 2,344
Estimated tax impact (1,697) (2,347)
Total IRP acquisition and recapitalization
expenses $10,424 14,419
======= ======

Earnings per share impact $0.29 0.47
===== ====






CONTACT: James River Coal CompanyElizabeth M. CookDirector of Investor Relations(804) 780-3000

James River Coal Company

Web Site: http://www.jamesrivercoal.com/



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