x
|
ANNUAL
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
¨
|
TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
Delaware
|
20-2641185
|
|
(State
or Other Jurisdiction of
Incorporation
or Organization)
|
(I.R.S.
Employer
Identification
No.)
|
Securities
registered pursuant to Section 12(b) of the Act:
|
Name
on each exchange on which registered:
|
|
Common
Stock, par value $0.01 per share
|
The
New York Stock Exchange
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Item 1.
|
|
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1
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Item 1A.
|
|
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31
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Item 1B.
|
|
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54
|
|
Item 2.
|
|
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54
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|
Item 3.
|
|
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60
|
|
Item 4.
|
|
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60
|
|
Item 5.
|
|
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61
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Item 6.
|
|
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63
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|
Item 7.
|
|
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65
|
|
Item 7A.
|
|
|
92
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|
Item 8.
|
|
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92
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|
Item 9.
|
|
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92
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Item 9A.
|
|
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92
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Item 9B.
|
|
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95
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|
Item 10.*
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|
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95
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Item 11.*
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|
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95
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Item 12.*
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|
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95
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Item 13.*
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95
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Item 14.*
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95
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Item 15.
|
|
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96
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*
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The
information required by Items 10, 11, 12, 13 and 14, to the extent not
included in this document, is incorporated herein by reference to the
information included under the captions “Election of Directors,” “Security
Ownership of Certain Beneficial Owners and Management and Related
Stockholder Matters,” “Certain Relationships and Related Party
Transactions,” “Audit Matters” and “ Executive Officers” in the
registrant’s definitive proxy statement which is expected to be filed on
or about April 1, 2010.
|
•
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market
demand for coal, electricity and steel;
|
•
|
availability
of qualified workers;
|
•
|
future
economic or capital market conditions;
|
•
|
weather
conditions or catastrophic weather-related damage;
|
•
|
our
production capabilities;
|
•
|
consummation
of financing, acquisition or disposition transactions and the effect
thereof on our business;
|
•
|
a
significant number of conversions of our Convertible Senior Notes prior to
maturity;
|
•
|
our
plans and objectives for future operations and expansion or
consolidation;
|
•
|
our
relationships with, and other conditions affecting, our
customers;
|
•
|
availability
and costs of key supplies or commodities such as diesel fuel, steel,
explosives and tires;
|
•
|
availability
and costs of capital equipment;
|
•
|
prices
of fuels which compete with or impact coal usage, such as oil and natural
gas;
|
•
|
timing
of reductions or increases in customer coal
inventories;
|
•
|
long-term
coal supply arrangements;
|
•
|
reductions
and/or deferrals of purchases by major customers;
|
•
|
risks
in or related to coal mining operations, including risks relating to
third-party suppliers and carriers operating at our mines or
complexes;
|
•
|
unexpected
maintenance and equipment failure;
|
•
|
environmental,
safety and other laws and regulations, including those directly affecting
our coal mining and production, and those affecting our customers’ coal
usage;
|
•
|
ability
to obtain and maintain all necessary governmental permits and
authorizations;
|
•
|
competition
among coal and other energy producers in the United States and
internationally;
|
•
|
railroad,
barge, trucking and other transportation availability, performance and
costs;
|
•
|
employee
benefits costs and labor relations issues;
|
•
|
replacement
of our reserves;
|
•
|
our
assumptions concerning economically recoverable coal reserve
estimates;
|
•
|
availability
and costs of credit, surety bonds and letters of
credit;
|
•
|
title
defects or loss of leasehold interests in our properties which could
result in unanticipated costs or inability to mine these
properties;
|
|
•
|
future
legislation and changes in regulations or governmental policies or changes
in interpretations or enforcement thereof, including with respect to
safety enhancements and environmental initiatives relating to global
warming and climate change;
|
|
•
|
impairment
of the value of our long-lived and deferred tax assets;
|
|
•
|
our
liquidity, including our ability to adhere to financial covenants related
to our borrowing arrangements;
|
|
•
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adequacy
and sufficiency of our internal controls; and
|
|
•
|
legal
and administrative proceedings, settlements, investigations and claims and
the availability of related insurance
coverage.
|
BUSINESS
|
|
|
Type
and Number of Mines
|
|
|
||||||||||||||
Mining Complexes
|
|
Location
|
|
Preparation
Plants
|
Under-
ground
|
|
Surface
|
|
Total
|
|
Mining
Method
(1)
|
|
Transportation
|
Tons
Produced
in
2009
|
||||
|
|
|
|
|
|
(in thousands)
|
||||||||||||
Eastern
|
|
Cowen,
WV
|
|
1
|
|
—
|
|
1
|
|
1
|
|
MTR, TSL
|
|
Rail
|
2,500.7
|
|||
Hazard
|
|
Hazard,
KY
|
|
—
|
|
—
|
|
4
|
|
4
|
|
CTR,
MTR,
TSL
|
|
Rail,
Truck
|
3,669.6
|
|||
Flint
Ridge
|
|
Hazard,
KY
|
|
1
|
1
|
|
—
|
|
1
|
|
R&P
|
|
Rail,
Truck
|
800.8
|
||||
Knott County
|
|
Kite,
KY
|
|
1
|
2
|
|
—
|
|
2
|
|
R&P
|
|
Rail
|
518.1
|
||||
Raven
|
|
Raven,
KY
|
|
1
|
2
|
|
—
|
|
2
|
|
R&P
|
|
Rail
|
728.5
|
||||
East
Kentucky
|
|
Pike
Co., KY
|
|
—
|
|
—
|
|
2
|
|
2
|
|
CTR,
MTR, TSL
|
|
Rail
|
933.0
|
|||
Beckley
|
|
Eccles,
WV
|
|
1
|
1
|
|
—
|
|
1
|
|
R&P
|
|
Rail
|
750.5
|
||||
Vindex
Energy Corporation
|
|
Garrett
Co., MD
|
|
1
|
|
—
|
|
3
|
|
3
|
|
CRM, TSL
|
|
Truck, Rail
|
740.1
|
|||
Patriot
Mining Company
|
|
Monongalia Co., WV
|
|
—
|
|
—
|
|
1
|
|
1
|
|
CTR,
TSL
|
|
Barge, Rail, Truck
|
744.9
|
|||
Wolf
Run Mining Buckhannon Division
|
|
Upshur Co., WV
|
|
1
|
2
|
|
—
|
|
2
|
|
R&P
|
|
Rail,
Truck
|
1,042.4
|
||||
Powell Mountain
|
St.
Charles, VA
|
1
|
1
|
|
—
|
1
|
R&P
|
Rail
|
203.1
|
|||||||||
Sentinel
|
|
Barbour
Co., WV
|
|
1
|
1
|
|
—
|
|
1
|
|
R&P
|
|
Rail,
Truck
|
1,367.5
|
||||
Illinois
|
|
Williamsville,
IL
|
|
1
|
1
|
|
—
|
|
1
|
|
R&P
|
|
Truck
|
2,252.0
|
(1)
|
CRM
= Cross Ridge Mining; CTR = Contour Mining; R&P = Room-and-pillar; MTR
= Mountain Top Removal; HW = Highwall; TSL = Truck and
Shovel/Loader.
|
2009
|
2008
|
2007
|
||||||||||||||
Mining
Complexes
|
Tons
Produced
|
Sales
Realizations
(1)
|
Tons
Produced
|
Sales
Realizations
(1)
|
Tons
Produced
|
|
Sales
Realizations
(1)
|
|||||||||
Eastern
|
2,500,707
|
$
|
66.92
|
3,234,517
|
$
|
55.36
|
3,268,000
|
$
|
42.15
|
|||||||
Hazard
|
3,669,581
|
$
|
65.72
|
4,055,874
|
$
|
54.56
|
3,868,959
|
$
|
45.04
|
|||||||
Flint
Ridge
|
800,792
|
$
|
66.25
|
1,055,996
|
$
|
55.05
|
1,306,428
|
$
|
45.49
|
|||||||
Knott County
|
518,095
|
$
|
64.84
|
948,445
|
$
|
52.57
|
1,039,714
|
$
|
46.41
|
|||||||
Raven
|
728,487
|
$
|
66.81
|
664,265
|
$
|
54.45
|
608,068
|
$
|
48.30
|
|||||||
East
Kentucky
|
933,030
|
$
|
55.49
|
1,058,092
|
$
|
58.39
|
1,001,911
|
$
|
51.42
|
|||||||
Beckley(2)
|
750,478
|
$
|
91.89
|
531,842
|
$
|
106.66
|
39,748
|
$
|
72.82
|
|||||||
Vindex
Energy Corporation
|
740,084
|
$
|
48.02
|
939,141
|
$
|
54.43
|
853,695
|
$
|
36.83
|
|||||||
Patriot
Mining Company
|
744,908
|
$
|
51.14
|
929,645
|
$
|
40.56
|
885,108
|
$
|
25.12
|
|||||||
Wolf
Run Mining Buckhannon Division
|
1,042,384
|
$
|
57.59
|
993,807
|
$
|
56.48
|
636,002
|
$
|
41.94
|
|||||||
Powell Mountain(3)
|
203,110
|
$
|
106.45
|
100,322
|
$
|
132.17
|
—
|
|
$
|
—
|
||||||
Sentinel
|
1,367,597
|
$
|
57.42
|
1,007,425
|
$
|
60.73
|
681,814
|
$
|
47.22
|
|||||||
Illinois
|
2,251,951
|
$
|
33.63
|
2,261,028
|
$
|
29.94
|
2,085,495
|
$
|
29.84
|
|||||||
Sycamore
Group
|
—
|
(4)
|
$
|
—
|
—
|
(4)
|
$
|
—
|
82,904
|
$
|
30.14
|
|||||
16,251,204
|
17,780,399
|
16,357,846
|
(1)
|
Excludes
freight and handling revenue.
|
(2)
|
Beckley
was in development until the fall of 2008.
|
(3)
|
Powell
Mountain was acquired in 2008.
|
(4)
|
The
Sycamore No. 1 mine was depleted and reclaimed in
2007.
|
RISK
FACTORS
|
•
|
supply
of and demand for domestic and foreign coal;
|
•
|
demand
for electricity;
|
•
|
domestic
and foreign demand for steel and the continued financial viability of the
domestic and/or foreign steel industry;
|
•
|
proximity
to, capacity of and cost of transportation facilities;
|
•
|
domestic
and foreign governmental legislation, regulations and
taxes;
|
•
|
air
emission standards for coal-fired power plants;
|
•
|
regulatory,
administrative and judicial decisions;
|
•
|
price
and availability of alternative fuels, including the effects of
technological developments; and
|
•
|
effect
of worldwide energy conservation
measures.
|
•
|
unavailability
of qualified labor;
|
•
|
our
inability to acquire, maintain or renew necessary permits or mining or
surface rights in a timely manner, if at all;
|
•
|
unfavorable
geologic conditions, such as the thickness of the coal deposits and the
amount of rock embedded in or overlying the coal
deposits;
|
•
|
failure
of reserve estimates to prove correct;
|
•
|
changes
in governmental regulation of the coal industry, including the imposition
of additional taxes, fees or actions to suspend or revoke our permits or
changes in the manner of enforcement of existing
regulations;
|
•
|
mining
and processing equipment failures and unexpected maintenance
problems;
|
•
|
adverse
weather and natural disasters, such as heavy rains and
flooding;
|
•
|
increased
water entering mining areas and increased or accidental mine water
discharges;
|
•
|
increased
or unexpected reclamation costs;
|
•
|
interruptions
due to transportation delays;
|
•
|
unavailability
of required equipment of the type and size needed to meet production
expectations; and
|
•
|
unexpected
mine safety accidents, including fires and
explosions.
|
•
|
geological
and mining conditions which may not be fully identified by available
exploration data or which may differ from experience in current
operations;
|
•
|
historical
production from the area compared with production from other similar
producing areas; and
|
•
|
assumed
effects of regulation and taxes by governmental agencies and assumptions
concerning coal prices, operating costs, mining technology improvements,
severance and excise taxes, development costs and reclamation
costs.
|
•
|
uncertainties
in assessing the value, strengths and potential profitability of, and
identifying the extent of all weaknesses, risks, contingent and other
liabilities (including environmental or mine safety liabilities) of,
acquisition candidates;
|
•
|
potential
loss of key customers, management and employees of an acquired
business;
|
•
|
ability
to achieve identified operating and financial synergies anticipated to
result from an acquisition;
|
•
|
discrepancies
between the estimated and actual reserves of the acquired
business;
|
•
|
problems
that could arise from the integration of the acquired business;
and
|
•
|
unanticipated
changes in business, industry or general economic conditions that affect
the assumptions underlying our rationale for pursuing the
acquisition.
|
•
|
fires
and explosions from methane gas or coal dust;
|
•
|
accidental
minewater discharges;
|
•
|
weather,
flooding and natural disasters;
|
•
|
unexpected
maintenance problems;
|
•
|
key
equipment failures;
|
•
|
variations
in coal seam thickness;
|
•
|
variations
in the amount of rock and soil overlying the coal deposit;
and
|
•
|
variations
in rock and other natural materials and variations in geologic
conditions.
|
•
|
lack
of availability, higher expense or unfavorable market terms of new
bonds;
|
•
|
restrictions
on availability of collateral for current and future third-party surety
bond issuers under the terms of our amended and restated credit facility;
and
|
•
|
exercise
by third-party surety bond issuers of their right to refuse to renew the
surety.
|
•
|
limitations
on land use;
|
•
|
employee
health and safety;
|
•
|
mandated
benefits for retired coal miners;
|
•
|
mine
permitting and licensing requirements;
|
•
|
reclamation
and restoration of mining properties after mining is
completed;
|
•
|
air
quality standards;
|
•
|
water
pollution;
|
•
|
construction
and permitting of facilities required for mining operations, including
valley fills and other structures, including those constructed in natural
water courses and wetlands;
|
•
|
protection
of human health, plantlife and wildlife;
|
•
|
discharge
of materials into the environment;
|
•
|
surface
subsidence from underground mining; and
|
•
|
effects
of mining on groundwater quality and
availability.
|
•
|
our
operating and financial performance and prospects;
|
•
|
our
ability to repay our debt;
|
•
|
investor
perceptions of us and the industry and markets in which we
operate;
|
•
|
changes
in earnings estimates or buy/sell recommendations by analysts;
and
|
•
|
general
financial, domestic, international, economic and other market
conditions.
|
•
|
5,034,610
shares of common stock issuable upon the exercise of stock options
outstanding at a weighted-average exercise price of
$5.00;
|
•
|
1,148,479
shares of restricted stock subject to continuing vesting requirements;
and
|
•
|
230,265
restricted share units issued to directors to be converted to common stock
upon separation of service.
|
•
|
making
it more difficult for us to meet our payment and other obligations under
our outstanding senior and convertible notes and our other outstanding
debt;
|
•
|
resulting
in an event of default if we fail to comply with the financial and other
restrictive covenants contained in our debt agreements, which could result
in all of our debt becoming immediately due and
payable;
|
•
|
subjecting
us to the risk of increased sensitivity to interest rate increases on our
indebtedness with variable interest rates, including borrowings under our
senior credit facility;
|
•
|
reducing
the availability of our cash flow to fund working capital, capital
expenditures, acquisitions and other general corporate purposes, and
limiting our ability to obtain additional financing for these
purposes;
|
•
|
limiting
our flexibility in planning for, or reacting to, and increasing our
vulnerability to, changes in our business, the industry in which we
operate and the general economy; and
|
•
|
placing
us at a competitive disadvantage compared to our competitors that have
less debt or are less leveraged.
|
•
|
incur
additional debt or issue guarantees;
|
•
|
pay
dividends on, redeem or repurchase capital stock;
|
•
|
allow
our subsidiaries to issue new stock to any person other than us or any of
our other subsidiaries;
|
•
|
make
certain investments;
|
•
|
make
acquisitions;
|
•
|
incur,
or permit to exist, liens;
|
•
|
enter
into transactions with affiliates;
|
•
|
guarantee
the debt of other entities, including joint ventures;
|
•
|
merge
or consolidate or otherwise combine with another company;
and
|
•
|
transfer
or sell a material amount of our assets outside the ordinary course of
business.
|
UNRESOLVED
STAFF COMMENTS
|
PROPERTIES
|
Mining
Operations
|
Assigned
or
Unassigned
(1)
|
Operating (O) or
Development
(D)
|
State
|
Mining
Method
Surface (S) or Underground
(UG)
|
Total
Proven
and
Probable
Reserves
(2)
|
Owned
Proven
and
Probable
Reserves(2)
|
Leased
Proven
and
Probable
Reserves(2)
|
Steam
Proven
and
Probable
Reserves(2)
|
Metallurgical(2)(3)(4)
Proven
and
Probable
Reserves
|
|||||||||
(in
million tons)
|
||||||||||||||||||
Northern
Appalachian
|
||||||||||||||||||
Vindex
Energy Corp.
|
Assigned
|
O
|
MD
|
S
|
6.53
|
0.00
|
6.53
|
6.53
|
0.00
|
|||||||||
Unassigned
|
D
|
MD
|
S/UG
|
58.48
|
0.34
|
58.14
|
38.24
|
20.24
|
||||||||||
Total
Vindex Energy Corp.
|
65.01
|
0.34
|
64.67
|
44.77
|
20.24
|
|||||||||||||
Patriot
Mining Co.
|
Assigned
|
O
|
WV
|
S
|
9.37
|
0.00
|
9.37
|
9.37
|
0.00
|
|||||||||
Wolf
Run Mining Buckhannon Division
|
Assigned
|
O
|
WV
|
UG
|
27.44
|
12.38
|
15.06
|
14.50
|
12.94
|
|||||||||
Unassigned
|
D
|
WV
|
UG
|
30.55
|
28.82
|
1.73
|
0.00
|
30.55
|
||||||||||
Total
Wolf Run Mining Buckhannon Division
|
57.99
|
41.20
|
16.79
|
14.50
|
43.49
|
|||||||||||||
Sentinel
|
Assigned
|
O
|
WV
|
UG
|
45.40
|
30.13
|
15.27
|
0.00
|
45.40
|
|||||||||
Unassigned
|
D
|
WV
|
UG
|
4.94
|
4.94
|
0.00
|
0.00
|
4.94
|
||||||||||
Total
Sentinel
|
50.34
|
35.07
|
15.27
|
0.00
|
50.34
|
|||||||||||||
CoalQuest
Development LLC
|
Unassigned
|
D
|
WV
|
UG
|
186.09
|
186.09
|
0.00
|
32.71
|
153.38
|
|||||||||
(Tygart)
|
||||||||||||||||||
ICG
Natural Resources
|
Unassigned
|
D
|
OH
|
UG
|
94.25
|
94.25
|
0.00
|
94.25
|
0.00
|
|||||||||
(Paw
Paw Creek)
|
||||||||||||||||||
Total
Northern Appalachian
|
463.05
|
356.95
|
106.10
|
195.60
|
267.45
|
|||||||||||||
Central
Appalachian
|
||||||||||||||||||
Eastern
|
Assigned
|
O
|
WV
|
S
|
7.47
|
0.14
|
7.33
|
7.47
|
0.00
|
|||||||||
Unassigned
|
D
|
WV
|
UG
|
2.18
|
0.00
|
2.18
|
2.18
|
0.00
|
||||||||||
Total
Eastern
|
9.65
|
0.14
|
9.51
|
9.65
|
0.00
|
|||||||||||||
Hazard
|
Assigned
|
O
|
KY
|
S
|
54.09
|
23.11
|
30.98
|
54.09
|
0.00
|
|||||||||
Unassigned
|
D
|
KY
|
UG
|
10.40
|
0.65
|
9.75
|
10.40
|
0.00
|
||||||||||
Total
Hazard
|
64.49
|
23.76
|
40.73
|
64.49
|
0.00
|
|||||||||||||
Flint
Ridge
|
Assigned
|
O
|
KY
|
UG
|
23.38
|
0.58
|
22.80
|
23.38
|
0.00
|
|||||||||
Knott County
|
Assigned
|
O
|
KY
|
UG
|
14.77
|
4.21
|
10.56
|
14.77
|
0.00
|
|||||||||
Unassigned
|
D
|
KY
|
UG
|
3.36
|
0.85
|
2.51
|
3.36
|
0.00
|
||||||||||
Total Knott County
|
18.13
|
5.06
|
13.07
|
18.13
|
0.00
|
|||||||||||||
Raven
|
Assigned
|
O
|
KY
|
UG
|
10.15
|
0.00
|
10.15
|
10.15
|
0.00
|
|||||||||
East
Kentucky
|
Assigned
|
O
|
KY
|
S
|
1.57
|
1.32
|
0.25
|
1.57
|
0.00
|
|||||||||
ICG
Natural Resources
|
Assigned
|
D
|
WV
|
S
|
14.71
|
0.00
|
14.71
|
14.71
|
0.00
|
|||||||||
Unassigned
|
D
|
WV
|
UG
|
30.19
|
2.20
|
27.99
|
30.19
|
0.00
|
||||||||||
(Jennie Creek)
|
||||||||||||||||||
Total ICG
Natural Resources
|
44.90
|
2.20
|
42.70
|
44.90
|
0.00
|
|||||||||||||
Powell Mountain
|
Assigned
|
O
|
VA
|
UG
|
4.85
|
0.00
|
4.85
|
4.85
|
0.00
|
|||||||||
Unassigned
|
D
|
VA
|
S/UG
|
22.02
|
0.00
|
22.02
|
22.02
|
0.00
|
||||||||||
Total Powell Mountain
|
26.87
|
0.00
|
26.87
|
26.87
|
0.00
|
|||||||||||||
Beckley
|
Assigned
|
O
|
WV
|
UG
|
31.28
|
1.28
|
30.00
|
0.00
|
31.28
|
|||||||||
White
Wolf Energy, Inc.
|
Unassigned
|
D
|
VA
|
UG
|
25.91
|
0.00
|
25.91
|
0.00
|
25.91
|
|||||||||
(Big Creek)
|
||||||||||||||||||
Total
Central Appalachian
|
256.33
|
34.34
|
221.99
|
199.14
|
57.19
|
|||||||||||||
Illinois
Basin
|
||||||||||||||||||
Illinois
|
Assigned
|
O
|
IL
|
UG
|
46.07
|
8.50
|
37.57
|
46.07
|
0.00
|
|||||||||
(Viper)
|
||||||||||||||||||
ICG
Natural Resources
|
Unassigned
|
D
|
IL
|
UG
|
324.60
|
324.60
|
0.00
|
324.60
|
0.00
|
|||||||||
Total
Illinois Basin
|
370.67
|
333.10
|
37.57
|
370.67
|
0.00
|
|||||||||||||
Total Proven and Probable Reserves
|
1,090.05
|
724.39
|
365.66
|
765.41
|
324.64
|
(1)
|
“Assigned
reserves” means coal which has been committed by the coal company to
operating mine shafts, mining equipment and plant facilities, and all coal
which has been leased by the coal company to others. “Unassigned reserves”
represent coal which has not been committed, and which would require new
mineshafts, mining equipment or plant facilities before operations could
begin in the property. The primary reason for this distinction is to
inform investors which coal reserves will require substantial capital
investment before production can begin.
|
(2)
|
The
proven and probable reserves are reported as recoverable reserves, which
is that part of a coal deposit which could be economically and legally
extracted or produced at the time of the reserve determination, taking
into account mining recovery and preparation plant
yield.
|
(3) | Beckley and White Wolf Energy, Inc. meet historical metallurgical coal quality specifications. |
(4)
|
We
sold coal with ash and sulfur contents as high as 10% and 1.5%,
respectively, into the metallurgical market from Vindex Energy, Buckhannon
and Sentinel in 2009. Similarly, we believe a portion of production from
Tygart could be sold into the metallurgical market when production
begins.
|
For
a description of mining properties, see Item 1. Business under the
headings “Northern and Central Appalachian Mining Operations” and
“Illinois Basin Mining Operations.”
|
As
Received Quality
|
Total
Proven and Probable Reserves(2)
|
|||||||||||||||
Mining
Operations
|
Assigned
or
Unassigned
(1)
|
%
Moisture
|
%
Ash
|
%
Sulfur
|
Btu/lb.
|
Lbs.
SO2/
million Btus
|
<1.2 lbs.
SO2
Compliance
|
>1.2 lbs
SO2
Non-Compliance
|
||||||||
Northern
Appalachian
|
||||||||||||||||
Vindex
Energy Corp.(4)
|
Assigned
|
4.66
|
19.29
|
1.82
|
11,700
|
3.11
|
0.00
|
6.53
|
||||||||
Unassigned
|
6.00
|
13.37
|
1.85
|
12,563
|
2.94
|
0.00
|
58.48
|
|||||||||
Total
Vindex Energy Corp.
|
5.87
|
13.96
|
1.84
|
12,477
|
2.96
|
0.00
|
65.01
|
|||||||||
Patriot
Mining Co.
|
Assigned
|
6.00
|
14.66
|
3.08
|
11,869
|
5.19
|
0.00
|
9.37
|
||||||||
Wolf
Run Mining Buckhannon Division(4)
|
Assigned
|
6.00
|
8.05
|
2.22
|
13,071
|
3.40
|
0.00
|
27.44
|
||||||||
Unassigned
|
6.00
|
8.92
|
0.99
|
13,069
|
1.52
|
0.00
|
30.55
|
|||||||||
Total Wolf Run Mining Buckhannon Division
|
6.00
|
8.51
|
1.57
|
13,070
|
2.41
|
0.00
|
57.99
|
|||||||||
Sentinel
|
Assigned
|
6.00
|
8.43
|
1.47
|
13,180
|
2.24
|
0.00
|
45.40
|
||||||||
Unassigned
|
6.00
|
8.04
|
1.44
|
13,353
|
2.15
|
0.00
|
4.94
|
|||||||||
Total
Sentinel
|
6.00
|
8.39
|
1.47
|
13,197
|
2.23
|
0.00
|
50.34
|
|||||||||
CoalQuest
Development LLC(4)
|
Unassigned
|
6.00
|
9.25
|
1.15
|
13,145
|
1.76
|
0.00
|
186.09
|
||||||||
(Tygart)
|
||||||||||||||||
ICG
Natural Resources
|
Unassigned
|
6.00
|
7.62
|
2.07
|
13,021
|
3.18
|
0.00
|
94.25
|
||||||||
(Paw
Paw Creek)
|
||||||||||||||||
Total
Northern Appalachian
|
0.00
|
463.05
|
||||||||||||||
Central
Appalachian
|
||||||||||||||||
Eastern
|
Assigned
|
6.00
|
14.37
|
1.23
|
11,974
|
2.05
|
0.00
|
7.47
|
||||||||
Unassigned
|
6.00
|
9.54
|
1.23
|
12,779
|
1.93
|
0.00
|
2.18
|
|||||||||
Total
Eastern
|
6.00
|
13.28
|
1.23
|
12,156
|
2.02
|
0.00
|
9.65
|
|||||||||
Hazard
|
Assigned
|
6.00
|
12.67
|
1.40
|
12,055
|
2.33
|
0.00
|
54.09
|
||||||||
Unassigned
|
6.00
|
6.55
|
0.84
|
12,890
|
1.30
|
0.00
|
10.40
|
|||||||||
Total
Hazard
|
6.00
|
11.69
|
1.31
|
12,190
|
2.15
|
0.00
|
64.49
|
|||||||||
Flint
Ridge
|
Assigned
|
6.00
|
8.15
|
1.39
|
12,768
|
2.17
|
1.33
|
22.05
|
||||||||
Knott County
|
Assigned
|
6.02
|
6.94
|
1.56
|
13,056
|
2.39
|
0.05
|
14.72
|
||||||||
Unassigned
|
6.00
|
7.07
|
1.79
|
13,034
|
2.75
|
0.00
|
3.36
|
|||||||||
Total Knott County
|
6.01
|
6.96
|
1.60
|
13,052
|
2.45
|
0.05
|
18.08
|
|||||||||
Raven
|
Assigned
|
6.00
|
7.21
|
1.35
|
12,912
|
2.10
|
0.00
|
10.15
|
||||||||
East
Kentucky
|
Assigned
|
5.94
|
9.28
|
0.85
|
12,441
|
1.37
|
0.00
|
1.57
|
||||||||
ICG
Natural Resources
|
Assigned
|
7.00
|
9.65
|
0.75
|
12,281
|
1.22
|
9.59
|
5.12
|
||||||||
Unassigned
|
7.00
|
4.92
|
1.27
|
13,254
|
1.92
|
0.00
|
30.19
|
|||||||||
(Jennie Creek)
|
||||||||||||||||
Total
ICG Natural Resources
|
7.00
|
6.47
|
1.10
|
12,935
|
1.70
|
9.59
|
35.31
|
|||||||||
Powell Mountain
|
Assigned
|
6.00
|
3.92
|
0.62
|
14,428
|
0.86
|
4.85
|
0.00
|
||||||||
Unassigned
|
6.00
|
8.38
|
2.01
|
13,194
|
3.04
|
6.46
|
15.56
|
|||||||||
Total Powell Mountain
|
6.00
|
7.57
|
1.76
|
13,417
|
2.62
|
11.31
|
15.56
|
|||||||||
Beckley(3)
|
Assigned
|
6.00
|
4.87
|
0.70
|
13,913
|
1.01
|
31.28
|
0.00
|
||||||||
White
Wolf Energy, Inc.(3)
|
Unassigned
|
6.00
|
4.09
|
0.63
|
14,150
|
0.89
|
25.91
|
0.00
|
||||||||
(Big Creek)
|
||||||||||||||||
Total
Central Appalachian
|
79.47
|
176.86
|
||||||||||||||
Illinois
Basin
|
||||||||||||||||
Illinois
|
Assigned
|
16.00
|
8.80
|
2.86
|
10,692
|
5.35
|
0.00
|
46.07
|
||||||||
(Viper)
|
||||||||||||||||
ICG
Natural Resources
|
Unassigned
|
12.75
|
9.28
|
2.88
|
10,963
|
5.25
|
0.00
|
324.60
|
||||||||
Total
Illinois Basin
|
0.00
|
370.67
|
||||||||||||||
Total
Proven and Probable Reserves
|
79.47
|
1,010.58
|
(1)
|
“Assigned
reserves” means coal which has been committed by the coal company to
operating mine shafts, mining equipment and plant facilities, and all coal
which has been leased by the coal company to others. “Unassigned reserves”
represent coal which has not been committed, and which would require new
mine shafts, mining equipment or plant facilities before operations could
begin in the property. The primary reason for this distinction is to
inform investors which coal reserves will require substantial capital
investment before production can begin.
|
(2)
|
The
proven and probable reserves are reported as recoverable reserves, which
is that part of a coal deposit which could be economically and legally
extracted or produced at the time of the reserve determination, taking
into account mining recovery and preparation plant
yield.
|
(3)
|
Beckley
and White Wolf Energy, Inc. meet historical metallurgical coal quality
specifications.
|
(4)
|
We
sold coal with ash and sulfur contents as high as 10% and 1.5%,
respectively, into the metallurgical market from Vindex Energy, Buckhannon
and Sentinel in 2009. Similarly, we believe a portion of production from
Tygart could be sold into the metallurgical market when production
begins.
|
For
a description of mining properties, see Item 1. Business under the
headings “Northern and Central Appalachian Mining Operations” and
“Illinois Basin Mining Operations.”
|
Mining
Operations
|
Assigned
or
Unassigned
(1)
|
Operating (O)
or
Development (D)
|
State
|
Mining Method
Surface
(S) or
Underground
(UG)
|
Total
Non-Reserve
Coal
Deposits
|
Steam
Non-Reserve
Coal
Deposits
|
Metallurgical(2)(3)
Non-Reserve
Coal
Deposits
|
|||||||
(in
million tons)
|
||||||||||||||
Northern
Appalachian
|
||||||||||||||
Vindex
Energy Corp.
|
Unassigned
|
D
|
MD
|
S
|
0.44
|
0.00
|
0.44
|
|||||||
Wolf
Run Mining Buckhannon Division
|
Assigned
|
O
|
WV
|
UG
|
1.45
|
1.45
|
0.00
|
|||||||
Unassigned
|
D
|
WV
|
UG
|
2.25
|
2.25
|
0.00
|
||||||||
Total
Wolf Run Mining Buckhannon Division
|
3.70
|
3.70
|
0.00
|
|||||||||||
Sentinel
|
Assigned
|
O
|
WV
|
UG
|
1.64
|
1.64
|
0.00
|
|||||||
Unassigned
|
D
|
WV
|
UG
|
0.76
|
0.76
|
0.00
|
||||||||
Total
Sentinel
|
2.40
|
2.40
|
0.00
|
|||||||||||
CoalQuest
Development LLC
|
Unassigned
|
D
|
WV
|
UG
|
38.14
|
38.14
|
0.00
|
|||||||
(Tygart)
|
||||||||||||||
Upshur
Property
|
Unassigned
|
WV
|
S
|
92.96
|
92.96
|
0.00
|
||||||||
(Upshur)
|
||||||||||||||
ICG
Natural Resources
|
Unassigned
|
D
|
OH
|
UG
|
5.77
|
5.77
|
0.00
|
|||||||
(Paw
Paw Creek)
|
||||||||||||||
Total
Northern Appalachian
|
143.41
|
142.97
|
0.44
|
|||||||||||
Central
Appalachian
|
||||||||||||||
Eastern
|
Assigned
|
O
|
WV
|
S
|
0.02
|
0.02
|
0.00
|
|||||||
Hazard
|
Assigned
|
O
|
KY
|
S
|
8.02
|
8.02
|
0.00
|
|||||||
Flint
Ridge
|
Assigned
|
O
|
KY
|
UG
|
0.94
|
0.94
|
0.00
|
|||||||
Knott County
|
Assigned
|
O
|
KY
|
UG
|
0.48
|
0.48
|
0.00
|
|||||||
ICG
Natural Resources
|
Assigned
|
D
|
WV
|
S
|
0.22
|
0.22
|
0.00
|
|||||||
(Jennie
Creek)
|
||||||||||||||
ICG
Natural Resources
|
Unassigned
|
D
|
KY
|
S/UG
|
35.59
|
35.59
|
0.00
|
|||||||
(Martin Co.,
Muhlenberg Co.)
|
||||||||||||||
ICG
Natural Resources
|
Unassigned
|
WV
|
S/UG
|
21.62
|
21.62
|
0.00
|
||||||||
(Mobil)
|
||||||||||||||
Powell Mountain
|
Unassigned
|
O
|
VA
|
UG
|
46.07
|
46.07
|
0.00
|
|||||||
Beckley
|
Unassigned
|
D
|
WV
|
UG
|
1.88
|
0.00
|
1.88
|
|||||||
Juliana
Mining Co., Inc.
|
Unassigned
|
D
|
WV
|
S/UG
|
3.10
|
3.10
|
0.00
|
|||||||
White
Wolf Energy, Inc.
|
Unassigned
|
D
|
VA
|
UG
|
2.57
|
2.57
|
0.00
|
|||||||
(Big
Creek)
|
||||||||||||||
Total
Central Appalachian
|
120.51
|
118.63
|
1.88
|
|||||||||||
Illinois
Basin
|
||||||||||||||
Illinois
|
Assigned
|
O
|
IL
|
UG
|
38.47
|
38.47
|
0.00
|
|||||||
(Viper)
|
||||||||||||||
ICG
Natural Resources
|
Unassigned
|
IL
|
UG
|
57.92
|
57.92
|
0.00
|
||||||||
(Illinois)
|
||||||||||||||
Total
Illinois Basin
|
96.39
|
96.39
|
0.00
|
Mining
Operations
|
Assigned
or
Unassigned(1)
|
Operating (O) or
Development (D)
|
State
|
Mining Method
Surface
(S) or
Underground
(UG)
|
Total
Non-Reserve
Coal Deposits
|
Steam
Non-Reserve
Coal Deposits
|
Metallurgical(2)(3)
Non-Reserve
Coal
Deposits
|
|||||||
Ancillary
|
(in
million tons)
|
|||||||||||||
ICG
Natural Resources
|
Unassigned
|
AR
|
S
|
39.15
|
39.15
|
0.00
|
||||||||
(Arkansas)
|
||||||||||||||
Unassigned
|
CA
|
UG
|
10.00
|
10.00
|
0.00
|
|||||||||
(California)
|
||||||||||||||
Unassigned
|
MT
|
S
|
12.00
|
12.00
|
0.00
|
|||||||||
(Montana)
|
||||||||||||||
Unassigned
|
WA
|
S
|
9.86
|
9.86
|
0.00
|
|||||||||
(Washington)
|
||||||||||||||
Total
Ancillary
|
71.01
|
71.01
|
0.00
|
|||||||||||
Total
Non-Reserve Coal Deposits
|
431.32
|
429.00
|
2.32
|
(1)
|
“Assigned
non-reserve coal deposits” mean coal which has been committed by the coal
company to operating mine shafts, mining equipment and plant facilities,
and all coal which has been leased by the coal company to others.
“Unassigned non-reserve coal deposits” represent coal which has not been
committed, and which would require new mine shafts, mining equipment or
plant facilities before operations could begin in the
property.
|
(2)
|
Beckley
and White Wolf Energy, Inc. meet historical metallurgical coal quality
specifications.
|
(3)
|
We
sold coal with ash and sulfur contents as high as 10% and 1.5%,
respectively, into the metallurgical market from Vindex Energy, Buckhannon
and Sentinel in 2009. Similarly, we believe a portion of the production
from Tygart can be sold into the metallurgical market.
|
For
a description of mining properties, see Item 1. Business under the
headings “Northern and Central Appalachian Mining Operations” and
“Illinois Basin Mining Operations.”
|
As
Received Quality
|
||||||||||||
Mining
Operations
|
Assigned
or
Unassigned
(1)
|
%
Moisture
|
%
Ash
|
%
Sulfur
|
Btu/
lb.
|
Lbs. SO2/
million Btus
|
||||||
Northern
Appalachian
|
||||||||||||
Vindex
Energy Corp.(3)
|
Unassigned
|
6.00
|
14.15
|
1.49
|
12,409
|
2.40
|
||||||
Wolf
Run Mining Buckhannon Division(3)
|
Assigned
|
6.00
|
7.43
|
2.83
|
13,086
|
4.32
|
||||||
Unassigned
|
6.00
|
9.00
|
1.20
|
13,000
|
1.85
|
|||||||
Sentinel
|
Assigned
|
6.00
|
8.30
|
1.40
|
13,100
|
2.14
|
||||||
Unassigned
|
6.00
|
8.30
|
1.40
|
13,100
|
2.14
|
|||||||
Upshur
Property
|
Unassigned
|
6.00
|
43.00
|
2.00
|
8,000
|
5.00
|
||||||
ICG
Natural Resources
|
Unassigned
|
6.00
|
7.62
|
2.07
|
13,021
|
3.18
|
||||||
(Paw
Paw Creek)
|
||||||||||||
Central
Appalachian
|
||||||||||||
Eastern
|
Assigned
|
6.00
|
12.20
|
1.20
|
12,400
|
1.94
|
||||||
Hazard
|
Assigned
|
6.00
|
13.00
|
1.17
|
11,965
|
1.96
|
||||||
Flint
Ridge
|
Assigned
|
6.00
|
8.15
|
1.39
|
12,768
|
2.18
|
||||||
Knott County
|
Assigned
|
6.00
|
6.82
|
1.90
|
13,040
|
2.91
|
||||||
ICG
Natural Resources
|
Assigned
|
7.00
|
7.78
|
0.63
|
12,609
|
1.01
|
||||||
(Jennie Creek)
|
||||||||||||
ICG
Natural Resources
|
Unassigned
|
6.00
|
11.47
|
1.91
|
11,780
|
3.24
|
||||||
(Martin Co.,
Muhlenberg Co.)
|
||||||||||||
ICG
Natural Resources
|
Unassigned
|
6.00
|
12.50
|
1.10
|
12,000
|
1.83
|
||||||
(Mobil)
|
||||||||||||
Powell Mountain
|
Unassigned
|
6.00
|
5.78
|
1.21
|
13,348
|
1.81
|
||||||
Beckley(2)
|
Unassigned
|
6.00
|
4.80
|
0.70
|
13,800
|
1.01
|
||||||
Juliana
Mining Co., Inc.
|
Unassigned
|
6.00
|
7.50
|
0.82
|
13,100
|
1.25
|
||||||
White
Wolf Energy, Inc.(2)
|
Unassigned
|
6.00
|
7.40
|
0.60
|
13,500
|
0.89
|
||||||
(Big
Creek)
|
|
|
As
received quality
|
||||||||||
Mining
operations
|
|
Assigned
or
Unassigned
(1)
|
|
%
Moisture
|
|
%
Ash
|
|
%
Sulfur
|
|
Btu/
lb.
|
|
Lbs. SO2/
million Btus
|
Illinois
Basin
|
|
|
|
|
|
|
||||||
Illinois
|
|
Assigned
|
|
16.00
|
9.50
|
3.50
|
10,500
|
6.67
|
||||
|
(Viper)
|
|
||||||||||
ICG
Natural Resources
|
|
Unassigned
|
|
13.00
|
9.00
|
3.00
|
11,000
|
5.45
|
||||
|
(Illinois)
|
|
||||||||||
Ancillary
|
||||||||||||
ICG
Natural Resources
|
|
Unassigned
|
|
N/A
|
8.00
|
0.40
|
5,650
|
1.42
|
||||
|
(Arkansas)
|
|
||||||||||
|
Unassigned
|
|
6.00
|
13.00
|
3.50
|
11,700
|
5.98
|
|||||
|
(California)
|
|
||||||||||
|
Unassigned
|
|
N/A
|
8.00
|
0.30
|
8,900
|
0.67
|
|||||
|
(Montana)
|
|
||||||||||
|
Unassigned
|
|
N/A
|
8.00
|
0.50
|
7,025
|
1.42
|
|||||
|
(Washington)
|
|
(1)
|
“Assigned
non-reserve coal deposits” mean coal which has been committed by the coal
company to operating mine shafts, mining equipment and plant facilities,
and all coal which has been leased by the coal company to others.
“Unassigned non-reserve coal deposits” represent coal which has not been
committed, and which would require new mineshafts, mining equipment or
plant facilities before operations could begin in the
property.
|
(2)
|
Beckley
and White Wolf Energy, Inc. meet historical metallurgical coal quality
specifications.
|
(3)
|
We
sold coal with ash and sulfur contents as high as 10% and 1.5%,
respectively, into the metallurgical market from Vindex Energy, Buckhannon
and Sentinel 2009. Similarly, we believe a portion of the production from
Tygart can be sold into the metallurgical market.
|
For
a description of mining properties, see Item 1. Business under the
headings “Northern and Central Appalachian Mining Operations” and
“Illinois Basin Mining Operations.”
|
LEGAL
PROCEEDINGS
|
SUBMISSION
OF MATTERS TO A VOTE OF SECURITY
HOLDERS
|
MARKET
FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER
PURCHASES OF EQUITY SECURITIES
|
Stock
Price
|
||||||||
High
|
Low
|
|||||||
2009
|
||||||||
January 1,
2009 through March 31, 2009
|
$ | 3.24 | $ | 1.09 | ||||
April 1,
2009 through June 30, 2009
|
3.70 | 1.54 | ||||||
July 1,
2009 through September 30, 2009
|
4.59 | 2.24 | ||||||
October 1,
2009 through December 31, 2009
|
5.35 | 3.47 | ||||||
2008
|
||||||||
January 1,
2008 through March 31, 2008
|
$ | 7.17 | $ | 4.75 | ||||
April 1,
2008 through June 30, 2008
|
13.90 | 6.00 | ||||||
July 1,
2008 through September 30, 2008
|
13.37 | 5.52 | ||||||
October 1,
2008 through December 31, 2008
|
6.19 | 1.50 |
Equity
Compensation Plan Information
|
|||||||
Plan
Category
|
Number of Securities
To
Be Issued Upon
Exercise
of
Outstanding
Options
|
|
Weighted
Average
Exercise
Price
of
Outstanding
Options
|
|
Number of Securities
Remaining Available
For Future Issuance
Under Equity
Compensation
Plans
|
||
Equity
compensation plans approved by stockholders(1)
|
4,715,558
|
|
$
|
4.60
|
|
10,911,409
|
|
Equity
compensation plans not approved by stockholders(2)
|
319,052
|
|
10.97
|
|
—
|
||
5,034,610
|
|
$
|
5.00
|
|
10,911,409
|
(1)
|
We
have one compensation plan: the 2005 Equity and Performance Incentive
Plan, as amended by stockholder approval on May 20,
2009.
|
(2)
|
Represents
stock option grant to purchase 319,052 shares of our common stock to our
President and Chief Executive Officer pursuant to his employment
agreement.
|
Period
|
Number
of Shares Purchased (1)
|
Average
Price Paid per Share(1)
|
|
Number
of Shares Purchased as Part of Publicly Announced Plans or
Programs
|
Approximate
Dollar Value of Shares that May Yet be Purchased Under the Plans or
Programs
|
||
January
1, 2009 through January 31, 2009
|
—
|
$
|
—
|
—
|
—
|
||
February
1, 2009 through February 28, 2009
|
—
|
—
|
—
|
—
|
|||
March
1, 2009 through March 31, 2009
|
4,768
|
1.76
|
—
|
—
|
|||
April
1, 2009 through April 30, 2009
|
2,165
|
1.99
|
—
|
—
|
|||
May
1, 2009 through May 31, 2009
|
—
|
—
|
—
|
—
|
|||
June
1, 2009 through June 30, 2009
|
388
|
2.86
|
—
|
—
|
|||
July
1, 2009 through July 31, 2009
|
—
|
—
|
—
|
—
|
|||
August
1, 2009 through August 31, 2009
|
—
|
—
|
—
|
—
|
|||
September
1, 2009 through September 30, 2009
|
—
|
—
|
—
|
—
|
|||
October
1, 2009 through October 31, 2009
|
—
|
—
|
—
|
—
|
|||
November
1, 2009 through November 30, 2009
|
—
|
—
|
—
|
—
|
|||
December
1, 2009 through December 31, 2009
|
—
|
—
|
—
|
—
|
|||
Total
|
7,321
|
$
|
2.20
|
—
|
—
|
(1)
|
During
the year ended December 31, 2009, we withheld 7,321 shares of common stock
from employees to satisfy estimated tax obligations upon the vesting of
restricted stock under the terms of our 2005 Equity and Performance
Incentive Plan. The value of the common stock that was withheld was based
upon the closing price of our common stock on the applicable vesting
dates.
|
SELECTED
FINANCIAL DATA
|
Year
ended
December 31,
2009
|
|
Year
ended
December 31,
2008
|
Year
ended
December 31,
2007
|
Year
ended
December 31,
2006
|
Year
ended
December 31,
2005(1)
|
|||||||||||||||
Statement
of Operations Data:
|
|
|||||||||||||||||||
Coal
sales revenues
|
$
|
1,006,606
|
|
$
|
998,245
|
$
|
770,663
|
$
|
833,998
|
$
|
619,038
|
|||||||||
Freight
and handling revenues
|
26,279
|
|
45,231
|
29,594
|
18,890
|
8,601
|
||||||||||||||
Other
revenues
|
92,464
|
|
53,260
|
48,898
|
38,706
|
22,852
|
||||||||||||||
Total
revenues
|
1,125,349
|
|
1,096,736
|
849,155
|
891,594
|
650,491
|
||||||||||||||
Costs
and Expenses:
|
|
|||||||||||||||||||
Cost
of coal sales and other revenues
|
868,303
|
|
918,655
|
766,158
|
769,332
|
510,097
|
||||||||||||||
Freight
and handling costs
|
26,279
|
|
45,231
|
29,594
|
18,890
|
8,601
|
||||||||||||||
Depreciation,
depletion and amortization
|
106,084
|
|
96,047
|
86,517
|
72,218
|
43,076
|
||||||||||||||
Selling,
general and administrative
|
32,749
|
|
38,147
|
33,325
|
34,578
|
28,828
|
||||||||||||||
Gain
on sale of assets
|
(3,659
|
)
|
|
(32,518
|
)
|
(38,656
|
)
|
(1,125
|
)
|
(502
|
)
|
|||||||||
Impairment
loss
|
—
|
|
37,428
|
170,402
|
—
|
—
|
||||||||||||||
Total
costs and expenses
|
1,029,756
|
|
1,102,990
|
1,047,340
|
893,893
|
590,100
|
||||||||||||||
Income
(loss) from operations
|
95,593
|
|
(6,254
|
)
|
(198,185
|
)
|
(2,299
|
)
|
60,391
|
|||||||||||
Interest
and Other Income (Expense):
|
|
|||||||||||||||||||
Loss
on extinguishment of debt
|
(13,293
|
)
|
|
—
|
—
|
—
|
—
|
|||||||||||||
Interest
expense, net
|
(53,044
|
)
|
|
(43,643
|
)
|
(35,989
|
)
|
(18,091
|
)
|
(14,394
|
)
|
|||||||||
Other,
net
|
—
|
|
—
|
319
|
2,113
|
3,302
|
||||||||||||||
Total
interest and other income (expense)
|
(66,337
|
)
|
|
(43,643
|
)
|
(35,670
|
)
|
(15,978
|
)
|
(11,092
|
)
|
|||||||||
Income
(loss) before income taxes
|
29,256
|
|
(49,897
|
)
|
(233,855
|
)
|
(18,277
|
)
|
49,299
|
|||||||||||
Income
tax benefit (expense)
|
(7,732
|
)
|
|
23,670
|
85,944
|
9,015
|
(16,986
|
)
|
||||||||||||
Net
income (loss)
|
21,524
|
(26,227
|
)
|
(147,911
|
)
|
(9,262
|
)
|
32,313
|
||||||||||||
Net
(income) loss attributable to noncontrolling interest
|
(66
|
)
|
|
—
|
349
|
(58
|
)
|
15
|
||||||||||||
Net
income (loss) attributable to International Coal Group,
Inc.
|
$
|
21,458
|
|
$
|
(26,227
|
)
|
$
|
(147,562
|
)
|
$
|
(9,320
|
)
|
$
|
32,328
|
Year
ended
December 31,
2009
|
|
Year
ended
December 31,
2008
|
Year
ended
December 31,
2007
|
Year
ended
December 31,
2006
|
Year
ended
December 31,
2005(1)
|
|||||||||||||||
Earnings
Per Share:
|
|
|||||||||||||||||||
Basic
|
$
|
0.14
|
$
|
(0.17
|
)
|
$
|
(0.97
|
)
|
$
|
(0.06
|
)
|
$
|
0.29
|
|||||||
Diluted
|
0.14
|
(0.17
|
)
|
(0.97
|
)
|
(0.06
|
)
|
0.29
|
||||||||||||
Weighted-Average
Common Shares Outstanding:
|
||||||||||||||||||||
Basic
|
153,630,446
|
152,632,586
|
152,304,461
|
152,028,165
|
111,120,211
|
|||||||||||||||
Diluted
|
155,386,263
|
152,632,586
|
152,304,461
|
152,028,165
|
111,161,287
|
|||||||||||||||
Balance
Sheet Data (at year end):
|
||||||||||||||||||||
Cash
and cash equivalents
|
$
|
92,641
|
$
|
63,930
|
$
|
107,150
|
$
|
18,742
|
$
|
9,187
|
||||||||||
Total
assets
|
1,367,960
|
1,350,647
|
1,303,363
|
1,316,891
|
1,051,403
|
|||||||||||||||
Long-term
debt and capital leases
|
384,309
|
432,870
|
391,248
|
180,035
|
45,462
|
|||||||||||||||
Total
liabilities
|
758,726
|
841,530
|
771,595
|
655,326
|
383,879
|
|||||||||||||||
Total
stockholders’ equity
|
609,234
|
509,117
|
531,768
|
661,565
|
667,524
|
|||||||||||||||
Total
liabilities and stockholders’ equity
|
1,367,960
|
1,350,647
|
1,303,363
|
1,316,891
|
1,051,403
|
|||||||||||||||
Statement
of Cash Flows Data:
|
||||||||||||||||||||
Net
cash from:
|
||||||||||||||||||||
Operating
activities
|
$
|
115,754
|
$
|
78,729
|
$
|
22,471
|
$
|
55,591
|
$
|
77,319
|
||||||||||
Investing
activities
|
(73,158
|
)
|
(124,040
|
)
|
(126,907
|
)
|
(160,769
|
)
|
(104,713
|
)
|
||||||||||
Financing
activities
|
(13,885
|
)
|
2,091
|
192,844
|
114,733
|
12,614
|
||||||||||||||
Capital
expenditures
|
66,345
|
132,800
|
160,807
|
165,658
|
108,231
|
(1)
|
On
November 18, 2005, we completed our reorganization and acquisition of
Anker and CoalQuest Development LLC (“CoalQuest”). The results of
operations are included in our consolidated results of operations since
that date.
|
MANAGEMENT’S
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
|
|
Year
ended
December
31,
|
Increase
(Decrease)
|
||||||||||||
|
2009
|
2008
|
$
or Tons
|
%
|
||||||||||
|
(in thousands, except percentages
and per ton data)
|
|||||||||||||
Coal
sales revenues
|
|
$
|
1,006,606
|
$
|
998,245
|
$
|
8,361
|
1
|
%
|
|||||
Freight
and handling revenues
|
|
26,279
|
45,231
|
(18,952
|
)
|
(42
|
)%
|
|||||||
Other
revenues
|
|
92,464
|
53,260
|
39,204
|
74
|
%
|
||||||||
Total
revenues
|
|
$
|
1,125,349
|
$
|
1,096,736
|
$
|
28,613
|
3
|
%
|
|||||
Tons
sold
|
|
16,833
|
18,914
|
(2,081
|
)
|
(11
|
)%
|
|||||||
Coal
sales revenue per ton
|
|
$
|
59.80
|
$
|
52.78
|
$
|
7.02
|
13
|
%
|
|
Year
ended
December
31,
|
Increase
(Decrease)
|
||||||||||||
|
2009
|
2008
|
$
|
%
|
||||||||||
|
(in thousands, except percentages)
|
|||||||||||||
Central
Appalachian
|
|
$
|
682,088
|
$
|
672,077
|
$
|
10,011
|
1
|
%
|
|||||
Northern
Appalachian
|
|
207,022
|
209,932
|
(2,910
|
)
|
(1
|
)%
|
|||||||
Illinois Basin
|
|
75,817
|
69,796
|
6,021
|
9
|
%
|
||||||||
Ancillary
|
|
41,679
|
46,440
|
(4,761
|
)
|
(10
|
)%
|
|||||||
Total
coal sales revenues
|
$
|
1,006,606
|
$
|
998,245
|
$
|
8,361
|
1
|
%
|
|
Year
ended
December
31,
|
Increase
(Decrease)
|
||||||||||||
|
2009
|
2008
|
Tons
|
%
|
||||||||||
|
(in thousands, except percentages)
|
|||||||||||||
Central
Appalachian
|
|
9,984
|
11,617
|
(1,633
|
)
|
(14
|
)%
|
|||||||
Northern
Appalachian
|
|
3,803
|
3,937
|
(134
|
)
|
(3
|
)%
|
|||||||
Illinois Basin
|
|
2,254
|
2,331
|
(77
|
)
|
(3
|
)%
|
|||||||
Ancillary
|
|
792
|
1,029
|
(237
|
)
|
(23
|
)%
|
|||||||
Total
tons sold
|
16,833
|
18,914
|
(2,081
|
)
|
(11
|
)%
|
|
Year
ended
December
31,
|
Increase
(Decrease)
|
||||||||||||
|
2009
|
2008
|
$
|
%
|
||||||||||
|
(in thousands, except percentages
and per ton data)
|
|||||||||||||
Cost
of coal sales
|
|
$
|
832,214
|
$
|
882,983
|
$
|
(50,769
|
)
|
(6
|
)%
|
||||
Freight
and handling costs
|
|
26,279
|
45,231
|
(18,952
|
)
|
(42
|
)%
|
|||||||
Cost
of other revenues
|
36,089
|
35,672
|
417
|
1
|
%
|
|||||||||
Depreciation,
depletion and amortization
|
106,084
|
96,047
|
10,037
|
10
|
%
|
|||||||||
Selling,
general and administrative expenses
|
32,749
|
38,147
|
(5,398
|
)
|
(14
|
)%
|
||||||||
Gain
on sale of assets
|
(3,659
|
)
|
(32,518
|
)
|
28,859
|
89
|
%
|
|||||||
Impairment
loss
|
—
|
37,428
|
(37,428
|
)
|
(100
|
)%
|
||||||||
Total
costs and expenses
|
|
$
|
1,029,756
|
$
|
1,102,990
|
$
|
(73,234
|
)
|
(7
|
)%
|
||||
Cost
of coal sales per ton
|
|
$
|
49.44
|
$
|
46.68
|
$
|
2.76
|
6
|
%
|
|
Year
ended
December
31,
|
Increase
(Decrease)
|
||||||||||||
|
2009
|
2008
|
$
|
%
|
||||||||||
|
(in thousands, except percentages)
|
|||||||||||||
Central
Appalachian
|
|
$
|
554,368
|
$
|
595,683
|
$
|
(41,315
|
)
|
(7
|
)%
|
||||
Northern
Appalachian
|
|
182,607
|
193,389
|
(10,782
|
)
|
(6
|
)%
|
|||||||
Illinois Basin
|
|
62,958
|
57,424
|
5,534
|
10
|
%
|
||||||||
Ancillary
|
|
32,281
|
36,487
|
(4,206
|
)
|
(12
|
)%
|
|||||||
Cost
of coal sales
|
$
|
832,214
|
$
|
882,983
|
$
|
(50,769
|
)
|
(6
|
)%
|
|
Year
ended
December
31,
|
Increase
(Decrease)
|
||||||||||||
|
2009
|
2008
|
$
|
%
|
||||||||||
|
(in thousands, except percentages)
|
|||||||||||||
Central
Appalachian
|
|
$
|
169,842
|
$
|
107,186
|
$
|
62,656
|
58
|
%
|
|||||
Northern
Appalachian
|
|
31,005
|
23,687
|
7,318
|
31
|
%
|
||||||||
Illinois Basin
|
|
14,405
|
14,784
|
(379
|
)
|
(3
|
)%
|
|||||||
Ancillary
|
|
(13,575
|
) |
(18,436
|
)
|
4,861
|
26
|
%
|
||||||
Total
Adjusted EBITDA
|
$
|
201,677
|
$
|
127,221
|
$
|
74,456
|
59
|
%
|
|
Year
ended
December
31,
|
Increase
(Decrease)
|
||||||||||||
|
2009
|
2008
|
$
|
%
|
||||||||||
|
(in thousands, except percentages)
|
|||||||||||||
Central
Appalachian
|
|
|||||||||||||
Net
income attributable to International Coal Group, Inc.
|
|
$
|
91,841
|
$
|
47,244
|
$
|
44,597
|
94
|
%
|
|||||
Depreciation,
depletion and amortization
|
|
71,298
|
64,132
|
7,166
|
11
|
%
|
||||||||
Interest
expense, net
|
4,488
|
2,145
|
2,343
|
109
|
%
|
|||||||||
Income
tax (benefit) expense
|
2,215
|
(6,335
|
)
|
8,550
|
*
|
%
|
||||||||
Adjusted
EBITDA
|
$
|
169,842
|
$
|
107,186
|
$
|
62,656
|
58
|
%
|
|
Year
ended
December
31,
|
Increase
(Decrease)
|
||||||||||||
|
2009
|
2008
|
$
|
%
|
||||||||||
|
(in thousands, except percentages)
|
|||||||||||||
Northern
Appalachian
|
||||||||||||||
Net
income attributable to International Coal Group, Inc.
|
|
$
|
7,994
|
$
|
3,217
|
$
|
4,777
|
148
|
%
|
|||||
Depreciation,
depletion and amortization
|
|
20,991
|
17,884
|
3,107
|
17
|
%
|
||||||||
Interest
expense, net
|
531
|
717
|
(186
|
)
|
(26
|
)%
|
||||||||
Income
tax (benefit) expense
|
1,423
|
(5,322
|
)
|
6,745
|
*
|
%
|
||||||||
Impairment
loss
|
—
|
7,191
|
(7,191
|
)
|
(100
|
)%
|
||||||||
Noncontrolling
interest
|
|
66
|
—
|
66
|
100
|
%
|
||||||||
Adjusted
EBITDA
|
$
|
31,005
|
$
|
23,687
|
$
|
7,318
|
31
|
%
|
|
Year
ended
December
31,
|
Increase
(Decrease)
|
||||||||||||
|
2009
|
2008
|
$
|
%
|
||||||||||
|
(in thousands, except percentages)
|
|||||||||||||
Illinois Basin
|
||||||||||||||
Net
income attributable to International Coal Group, Inc.
|
|
$
|
6,080
|
$
|
6,959
|
$
|
(879
|
)
|
(13
|
)%
|
||||
Depreciation,
depletion and amortization
|
|
7,957
|
7,342
|
615
|
8
|
%
|
||||||||
Interest
expense, net
|
579
|
327
|
252
|
77
|
%
|
|||||||||
Income
tax (benefit) expense
|
(211
|
)
|
156
|
(367
|
)
|
*
|
%
|
|||||||
Adjusted
EBITDA
|
$
|
14,405
|
$
|
14,784
|
$
|
(379
|
)
|
(3
|
)%
|
|
Year
ended
December
31,
|
Increase
(Decrease)
|
||||||||||||
|
2009
|
2008
|
$
|
%
|
||||||||||
|
(in thousands, except percentages)
|
|||||||||||||
Ancillary
|
||||||||||||||
Net
loss attributable to International Coal Group, Inc.
|
|
$
|
(84,457
|
)
|
$
|
(83,647
|
)
|
$
|
(810
|
)
|
1
|
%
|
||
Depreciation,
depletion and amortization
|
|
5,838
|
6,689
|
(851
|
)
|
(13
|
)%
|
|||||||
Interest
expense, net
|
47,446
|
40,454
|
6,992
|
17
|
%
|
|||||||||
Income
tax (benefit) expense
|
|
4,305
|
(12,169
|
)
|
16,474
|
*
|
%
|
|||||||
Loss
on extinguishment of debt
|
13,293
|
—
|
13,293
|
100
|
%
|
|||||||||
Impairment
loss
|
—
|
30,237
|
(30,237
|
)
|
(100
|
)%
|
||||||||
Adjusted
EBITDA
|
$
|
(13,575
|
)
|
$
|
(18,436
|
)
|
$
|
4,861
|
26
|
%
|
|
Year
ended
December
31,
|
Increase
(Decrease)
|
||||||||||||
|
2009
|
2008
|
$
|
%
|
||||||||||
|
(in thousands, except percentages)
|
|||||||||||||
Consolidated
|
|
|||||||||||||
Net
income (loss) attributable to International Coal Group,
Inc.
|
|
$
|
21,458
|
$
|
(26,227
|
)
|
$
|
47,685
|
*
|
%
|
||||
Depreciation,
depletion and amortization
|
|
106,084
|
96,047
|
10,037
|
10
|
%
|
||||||||
Interest
expense, net
|
53,044
|
43,643
|
9,401
|
22
|
%
|
|||||||||
Income
tax (benefit) expense
|
7,732
|
(23,670
|
)
|
31,402
|
*
|
%
|
||||||||
Loss
on extinguishment of debt
|
13,293
|
—
|
13,293
|
100
|
%
|
|||||||||
Impairment
loss
|
—
|
37,428
|
(37,428
|
)
|
(100
|
)%
|
||||||||
Noncontrolling
interest
|
|
66
|
—
|
66
|
100
|
%
|
||||||||
Adjusted
EBITDA
|
$
|
201,677
|
$
|
127,221
|
$
|
74,456
|
59
|
%
|
|
Year
ended
December
31,
|
Increase
(Decrease)
|
||||||||||||
|
2008
|
2007
|
$
or Tons
|
%
|
||||||||||
|
(in thousands, except percentages
and per ton data)
|
|||||||||||||
Coal
sales revenues
|
|
$
|
998,245
|
$
|
770,663
|
$
|
227,582
|
30
|
%
|
|||||
Freight
and handling revenues
|
|
45,231
|
29,594
|
15,637
|
53
|
%
|
||||||||
Other
revenues
|
|
53,260
|
48,898
|
4,362
|
9
|
%
|
||||||||
Total
revenues
|
|
$
|
1,096,736
|
$
|
849,155
|
$
|
247,581
|
29
|
%
|
|||||
Tons
sold
|
|
18,914
|
18,343
|
571
|
3
|
%
|
||||||||
Coal
sales revenue per ton
|
|
$
|
52.78
|
$
|
42.01
|
$
|
10.77
|
26
|
%
|
|
Year
ended
December
31,
|
Increase
(Decrease)
|
||||||||||||
|
2008
|
2007
|
$
|
%
|
||||||||||
|
(in thousands, except percentages)
|
|||||||||||||
Central
Appalachian
|
|
$
|
672,077
|
$
|
512,352
|
$
|
159,725
|
31
|
%
|
|||||
Northern
Appalachian
|
|
209,932
|
121,200
|
88,732
|
73
|
%
|
||||||||
Illinois Basin
|
|
69,796
|
60,368
|
9,428
|
16
|
%
|
||||||||
Ancillary
|
|
46,440
|
76,743
|
(30,303
|
)
|
(39
|
)%
|
|||||||
Total
coal sales revenues
|
$
|
998,245
|
$
|
770,663
|
$
|
227,582
|
30
|
%
|
|
Year
ended
December
31,
|
Increase
(Decrease)
|
||||||||||||
|
2008
|
2007
|
Tons
|
%
|
||||||||||
|
(in thousands, except percentages)
|
|||||||||||||
Central
Appalachian
|
|
11,617
|
11,323
|
294
|
3
|
%
|
||||||||
Northern
Appalachian
|
|
3,937
|
3,291
|
646
|
20
|
%
|
||||||||
Illinois Basin
|
|
2,331
|
2,025
|
306
|
15
|
%
|
||||||||
Ancillary
|
|
1,029
|
1,704
|
(675
|
)
|
(40
|
)%
|
|||||||
Total
tons sold
|
18,914
|
18,343
|
571
|
3
|
%
|
|
Year
ended
December
31,
|
Increase
(Decrease)
|
||||||||||||
|
2008
|
2007
|
$
|
%
|
||||||||||
|
(in thousands, except percentages
and per ton data)
|
|||||||||||||
Cost
of coal sales
|
|
$
|
882,983
|
$
|
732,112
|
$
|
150,871
|
21
|
%
|
|||||
Freight
and handling costs
|
|
45,231
|
29,594
|
15,637
|
53
|
%
|
||||||||
Cost
of other revenues
|
35,672
|
34,046
|
1,626
|
5
|
%
|
|||||||||
Depreciation,
depletion and amortization
|
96,047
|
86,517
|
9,530
|
11
|
%
|
|||||||||
Selling,
general and administrative expenses
|
38,147
|
33,325
|
4,822
|
14
|
%
|
|||||||||
Gain
on sale of assets
|
(32,518
|
)
|
(38,656
|
)
|
6,138
|
16
|
%
|
|||||||
Impairment
loss
|
37,428
|
170,402
|
(132,974
|
)
|
(78
|
)%
|
||||||||
Total
costs and expenses
|
|
$
|
1,102,990
|
$
|
1,047,340
|
$
|
55,650
|
5
|
%
|
|||||
Cost
of coal sales per ton
|
|
$
|
46.68
|
$
|
39.91
|
$
|
6.77
|
17
|
%
|
|
Year
ended
December
31,
|
Increase
(Decrease)
|
||||||||||||
|
2008
|
2007
|
$
|
%
|
||||||||||
|
(in thousands, except percentages)
|
|||||||||||||
Central
Appalachian
|
|
$
|
595,683
|
$
|
468,958
|
$
|
126,725
|
27
|
%
|
|||||
Northern
Appalachian
|
|
193,389
|
147,745
|
45,644
|
31
|
%
|
||||||||
Illinois Basin
|
|
57,424
|
46,701
|
10,723
|
23
|
%
|
||||||||
Ancillary
|
|
36,487
|
68,708
|
(32,221
|
)
|
(47
|
)%
|
|||||||
Cost
of coal sales
|
$
|
882,983
|
$
|
732,112
|
$
|
150,871
|
21
|
%
|
|
Year
ended
December
31,
|
Increase
(Decrease)
|
||||||||||||
|
2008
|
2007
|
$
|
%
|
||||||||||
|
(in thousands, except percentages)
|
|||||||||||||
Central
Appalachian
|
|
$
|
107,186
|
$
|
47,442
|
$
|
59,744
|
126
|
%
|
|||||
Northern
Appalachian
|
|
23,687
|
(22,215
|
)
|
45,902
|
207
|
%
|
|||||||
Illinois Basin
|
|
14,784
|
15,463
|
(679
|
)
|
(4
|
)%
|
|||||||
Ancillary
|
|
(18,436
|
18,363
|
(36,799
|
)
|
(200
|
)%
|
|||||||
Total
Adjusted EBITDA
|
$
|
127,221
|
$
|
59,053
|
$
|
68,168
|
115
|
%
|
|
Year
ended
December
31,
|
Increase
(Decrease)
|
||||||||||||
|
2008
|
2007
|
$
|
%
|
||||||||||
|
(in thousands, except percentages)
|
|||||||||||||
Central
Appalachian
|
|
|||||||||||||
Net
income (loss) attributable to International Coal Group,
Inc.
|
|
$
|
47,244
|
$
|
(184,372
|
)
|
$
|
231,616
|
126
|
%
|
||||
Depreciation,
depletion and amortization
|
|
64,132
|
60,015
|
4,117
|
7
|
%
|
||||||||
Interest
expense, net
|
2,145
|
1,397
|
748
|
54
|
%
|
|||||||||
Income
tax benefit
|
(6,335
|
)
|
—
|
(6,335
|
)
|
(100
|
)%
|
|||||||
Impairment
loss
|
|
—
|
170,402
|
(170,402
|
)
|
(100
|
)%
|
|||||||
Adjusted
EBITDA
|
$
|
107,186
|
$
|
47,442
|
$
|
59,744
|
126
|
%
|
|
Year
ended
December
31,
|
Increase
(Decrease)
|
||||||||||||
|
2008
|
2007
|
$
|
%
|
||||||||||
|
(in thousands, except percentages)
|
|||||||||||||
Northern
Appalachian
|
||||||||||||||
Net
income (loss) attributable to International Coal Group,
Inc.
|
|
$
|
3,217
|
$
|
(31,790
|
)
|
$
|
35,007
|
110
|
%
|
||||
Depreciation,
depletion and amortization
|
|
17,884
|
9,467
|
8,417
|
89
|
%
|
||||||||
Interest
expense, net
|
717
|
457
|
260
|
57
|
%
|
|||||||||
Income
tax benefit
|
(5,322
|
)
|
—
|
(5,322
|
)
|
(100
|
)%
|
|||||||
Impairment
loss
|
7,191
|
—
|
7,191
|
100
|
%
|
|||||||||
Noncontrolling
interest
|
|
—
|
(349
|
)
|
349
|
100
|
%
|
|||||||
Adjusted
EBITDA
|
$
|
23,687
|
$
|
(22,215
|
)
|
$
|
45,902
|
207
|
%
|
|
Year
ended
December
31,
|
Increase
(Decrease)
|
||||||||||||
|
2008
|
2007
|
$
|
%
|
||||||||||
|
(in thousands, except percentages)
|
|||||||||||||
Illinois Basin
|
||||||||||||||
Net
income attributable to International Coal Group, Inc.
|
|
$
|
6,959
|
$
|
8,714
|
$
|
(1,755
|
)
|
(20
|
)%
|
||||
Depreciation,
depletion and amortization
|
|
7,342
|
6,527
|
815
|
12
|
%
|
||||||||
Interest
expense, net
|
327
|
222
|
105
|
47
|
%
|
|||||||||
Income
tax expense
|
156
|
—
|
156
|
100
|
%
|
|||||||||
Adjusted
EBITDA
|
$
|
14,784
|
$
|
15,463
|
$
|
(679
|
)
|
(4
|
)%
|
|
Year
ended
December
31,
|
Increase
(Decrease)
|
||||||||||||
|
2008
|
2007
|
$
|
%
|
||||||||||
|
(in thousands, except percentages)
|
|||||||||||||
Ancillary
|
||||||||||||||
Net
income (loss) attributable to International Coal Group,
Inc.
|
|
$
|
(83,647
|
)
|
$
|
59,886
|
$
|
(143,533
|
)
|
(240
|
)%
|
|||
Depreciation,
depletion and amortization
|
|
6,689
|
10,508
|
(3,819
|
)
|
(36
|
)%
|
|||||||
Interest
expense, net
|
40,454
|
33,913
|
6,541
|
19
|
%
|
|||||||||
Income
tax benefit
|
|
(12,169
|
)
|
(85,944
|
)
|
73,775
|
86
|
%
|
||||||
Impairment
loss
|
30,237
|
—
|
30,237
|
100
|
%
|
|||||||||
Adjusted
EBITDA
|
$
|
(18,436
|
)
|
$
|
18,363
|
$
|
(36,799
|
)
|
(200
|
)%
|
|
Year
ended
December
31,
|
Increase
(Decrease)
|
||||||||||||
|
2008
|
2007
|
$
|
%
|
||||||||||
|
(in thousands, except percentages)
|
|||||||||||||
Consolidated
|
|
|||||||||||||
Net
loss attributable to International Coal Group, Inc.
|
|
$
|
(26,227
|
)
|
$
|
(147,562
|
)
|
$
|
121,335
|
82
|
%
|
|||
Depreciation,
depletion and amortization
|
|
96,047
|
86,517
|
9,530
|
11
|
%
|
||||||||
Interest
expense, net
|
43,643
|
35,989
|
7,654
|
21
|
%
|
|||||||||
Income
tax benefit
|
(23,670
|
)
|
(85,944
|
)
|
62,274
|
72
|
%
|
|||||||
Impairment
loss
|
37,428
|
170,402
|
(132,974
|
)
|
(78
|
)%
|
||||||||
Noncontrolling
interest
|
|
—
|
(349
|
)
|
349
|
100
|
%
|
|||||||
Adjusted
EBITDA
|
$
|
127,221
|
$
|
59,053
|
$
|
68,168
|
115
|
%
|
|
2009
|
|
||
9.00%
Convertible senior notes, due 2012, net of debt discount
of $9,480
|
|
$
|
152,022
|
|
10.25%
Senior notes, due 2014
|
|
175,000
|
|
|
Equipment
notes
|
|
54,417
|
|
|
Capital
leases and other
|
2,870
|
|||
Total
|
|
384,309
|
|
|
Less
current portion
|
|
(17,794
|
)
|
|
Long-term
debt and capital leases
|
|
$
|
366,515
|
|
Payments
Due by Period
|
||||||||||||||||||||
Less than
1
year
|
1-3
years
|
3-5
years
|
More than
5
years
|
Total
|
||||||||||||||||
Long-term
debt and capital lease(1)
|
$
|
53,885
|
$
|
254,180
|
$
|
212,165
|
$
|
—
|
$
|
520,230
|
||||||||||
Operating
leases
|
98
|
79
|
15
|
2
|
194
|
|||||||||||||||
Coal
purchase obligations(2)
|
14,377
|
—
|
—
|
—
|
14,377
|
|||||||||||||||
Diesel
fuel purchase obligations(2)
|
39,859
|
—
|
—
|
—
|
39,859
|
|||||||||||||||
Advisory
Services Agreement(3)
|
2,000
|
1,500
|
—
|
—
|
3,500
|
|||||||||||||||
Minimum
royalties
|
10,462
|
18,489
|
15,535
|
29,815
|
74,301
|
|||||||||||||||
Postretirement
medical benefits
|
430
|
2,091
|
4,067
|
182,279
|
188,867
|
|||||||||||||||
Total
|
$
|
121,111
|
$
|
276,339
|
$
|
231,782
|
$
|
212,096
|
$
|
841,328
|
(1)
|
Amounts
are inclusive of interest assuming interest rates of 10.25% for our senior
notes, 9.0% for our convertible notes and ranging from 5.10% to 10.09% on
our equipment notes.
|
(2)
|
Reflects
estimates of obligations.
|
(3)
|
See “Certain Relationships and
Related Transactions, and Director
Independence.”
|
QUANTITATIVE
AND QUALITATIVE DISCLOSURES ABOUT MARKET
RISK
|
ITEM 8.
|
FINANCIAL
STATEMENTS AND SUPPLEMENTARY DATA
|
ITEM 9.
|
CHANGES
IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL
DISCLOSURE
|
ITEM 9A.
|
CONTROLS
AND PROCEDURES
|
/s/ Deloitte &
Touche LLP
|
Cincinnati,
Ohio
|
January
29, 2010
|
OTHER
INFORMATION
|
ITEM 10.
|
DIRECTORS,
EXECUTIVE OFFICERS AND CORPORATE
GOVERNANCE
|
ITEM 11.
|
EXECUTIVE
COMPENSATION
|
ITEM 12.
|
SECURITY
OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED
STOCKHOLDER MATTERS
|
ITEM 13.
|
CERTAIN
RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR
INDEPENDENCE
|
ITEM 14.
|
PRINCIPAL
ACCOUNTANT FEES AND SERVICE
|
EXHIBITS,
FINANCIAL STATEMENT SCHEDULES
|
(a)
|
Financial
Statements:
|
|
Page
|
|
International
Coal Group, Inc. and Subsidiaries
|
|
|
|
F-1
|
|
|
F-2
|
|
|
F-3
|
|
|
F-4
|
|
|
F-5
|
|
|
F-6
|
|
|
||
(i) See
the Exhibit Index.
|
|
|
(c) Financial
Statement Schedules.
|
|
|
|
Page
|
|
F-39
|
||
|
F-44
|
/s/
Deloitte & Touche LLP
|
Cincinnati,
Ohio
|
January
29, 2010
|
|
December
31,
2009
|
December 31,
2008
|
||||||
ASSETS
|
|
|||||||
CURRENT
ASSETS:
|
|
|||||||
Cash
and cash equivalents
|
|
$
|
92,641
|
$
|
63,930
|
|||
Accounts
receivable, net of allowances of $222 and $1,516
|
|
80,291
|
75,321
|
|||||
Inventories,
net
|
|
82,037
|
58,788
|
|||||
Deferred
income taxes
|
|
15,906
|
17,649
|
|||||
Prepaid
insurance
|
|
6,351
|
13,380
|
|||||
Income
taxes receivable
|
|
1,423
|
8,030
|
|||||
Prepaid
expenses and other
|
|
9,960
|
10,893
|
|||||
Total
current assets
|
|
288,609
|
247,991
|
|||||
PROPERTY,
PLANT, EQUIPMENT AND MINE DEVELOPMENT, net
|
|
1,038,200
|
1,069,297
|
|||||
DEBT
ISSUANCE COSTS, net
|
|
7,634
|
10,462
|
|||||
ADVANCE
ROYALTIES, net
|
|
18,025
|
17,462
|
|||||
OTHER
NON-CURRENT ASSETS
|
|
15,492
|
5,435
|
|||||
Total
assets
|
|
$
|
1,367,960
|
$
|
1,350,647
|
|||
|
||||||||
LIABILITIES
AND STOCKHOLDERS’ EQUITY
|
|
|||||||
CURRENT
LIABILITIES:
|
|
|||||||
Accounts
payable
|
|
$
|
63,582
|
$
|
75,810
|
|||
Short-term
debt
|
2,166
|
4,741
|
||||||
Current
portion of long-term debt and capital leases
|
|
17,794
|
15,319
|
|||||
Current
portion of reclamation and mine closure costs
|
|
9,390
|
11,139
|
|||||
Current
portion of employee benefits
|
|
3,973
|
3,359
|
|||||
Accrued
expenses and other
|
|
74,803
|
87,704
|
|||||
Total
current liabilities
|
|
171,708
|
198,072
|
|||||
LONG-TERM
DEBT AND CAPITAL LEASES
|
|
366,515
|
417,551
|
|||||
RECLAMATION
AND MINE CLOSURE COSTS
|
|
65,601
|
68,107
|
|||||
EMPLOYEE
BENEFITS
|
|
63,767
|
56,563
|
|||||
DEFERRED
INCOME TAXES
|
|
57,399
|
51,154
|
|||||
BELOW-MARKET
COAL SUPPLY AGREEMENTS
|
|
29,939
|
43,888
|
|||||
OTHER
NON-CURRENT LIABILITIES
|
|
3,797
|
6,195
|
|||||
Total
liabilities
|
|
758,726
|
841,530
|
|||||
COMMITMENTS
AND CONTINGENCIES
|
|
|
||||||
STOCKHOLDERS’
EQUITY:
|
|
|||||||
Preferred
stock–par value $0.01, 200,000,000 shares authorized, none
issued
|
|
—
|
—
|
|||||
Common
stock–par value $0.01, 2,000,000,000 shares authorized, 172,820,047 and
172,812,726 shares issued and outstanding, respectively, as of December
31, 2009 and 153,322,245 shares issued and outstanding, as of December 31,
2008
|
|
1,728
|
1,533
|
|||||
Treasury
stock
|
(14
|
)
|
—
|
|||||
Additional
paid-in capital
|
|
732,124
|
656,997
|
|||||
Accumulated
other comprehensive income (loss)
|
|
1,048
|
(2,277
|
)
|
||||
Retained
deficit
|
|
(125,713
|
)
|
(147,171
|
)
|
|||
Total
International Coal Group, Inc. stockholders’ equity
|
|
609,173
|
509,082
|
|||||
Noncontrolling
interest
|
61
|
35
|
||||||
Total
stockholders’ equity
|
609,234
|
509,117
|
||||||
Total
liabilities and stockholders’ equity
|
|
$
|
1,367,960
|
$
|
1,350,647
|
Year
Ended December 31,
|
||||||||||||
|
2009
|
2008
|
2007
|
|||||||||
REVENUES:
|
|
|||||||||||
Coal
sales revenues
|
|
$
|
1,006,606
|
$
|
998,245
|
$
|
770,663
|
|||||
Freight
and handling revenues
|
|
26,279
|
45,231
|
29,594
|
||||||||
Other
revenues
|
|
92,464
|
53,260
|
48,898
|
||||||||
Total
revenues
|
|
1,125,349
|
1,096,736
|
849,155
|
||||||||
COSTS
AND EXPENSES:
|
|
|||||||||||
Cost
of coal sales
|
|
832,214
|
882,983
|
732,112
|
||||||||
Freight
and handling costs
|
|
26,279
|
45,231
|
29,594
|
||||||||
Cost
of other revenues
|
|
36,089
|
35,672
|
34,046
|
||||||||
Depreciation,
depletion and amortization
|
|
106,084
|
96,047
|
86,517
|
||||||||
Selling,
general and administrative
|
|
32,749
|
38,147
|
33,325
|
||||||||
Gain
on sale of assets
|
|
(3,659
|
)
|
(32,518
|
)
|
(38,656
|
)
|
|||||
Goodwill
impairment loss
|
—
|
30,237
|
170,402
|
|||||||||
Long-lived
asset impairment loss
|
|
—
|
7,191
|
—
|
||||||||
Total
costs and expenses
|
|
1,029,756
|
1,102,990
|
1,047,340
|
||||||||
Income
(loss) from operations
|
|
95,593
|
(6,254
|
)
|
(198,185
|
)
|
||||||
INTEREST
AND OTHER INCOME (EXPENSE):
|
|
|||||||||||
Loss
on extinguishment of debt
|
|
(13,293
|
)
|
—
|
—
|
|||||||
Interest
expense, net
|
(53,044
|
)
|
(43,643
|
)
|
(35,989
|
)
|
||||||
Other,
net
|
|
—
|
—
|
319
|
||||||||
Total
interest and other income (expense)
|
|
(66,337
|
)
|
(43,643
|
)
|
(35,670
|
)
|
|||||
Income
(loss) before income taxes
|
|
29,256
|
(49,897
|
)
|
(233,855
|
)
|
||||||
INCOME
TAX BENEFIT (EXPENSE) BENEFIT
|
|
(7,732
|
)
|
23,670
|
85,944
|
|||||||
Net
income (loss)
|
21,524
|
(26,227
|
)
|
(147,911
|
)
|
|||||||
Net
(income) loss attributable to noncontrolling interest
|
|
(66
|
)
|
—
|
349
|
|||||||
Net
income (loss) attributable to International Coal Group,
Inc.
|
|
$
|
21,458
|
$
|
(26,227
|
)
|
$
|
(147,562
|
)
|
|||
|
||||||||||||
Earnings
per share:
|
|
|||||||||||
Basic
|
|
$
|
0.14
|
$
|
(0.17
|
)
|
$
|
(0.97
|
)
|
|||
Diluted
|
0.14
|
(0.17
|
)
|
(0.97
|
)
|
|||||||
Weighted-average
common shares outstanding:
|
|
|||||||||||
Basic |
153,630,446
|
152,632,586
|
152,304,461
|
|||||||||
Diluted
|
|
155,386,263
|
152,632,586
|
152,304,461
|
Common
Stock
|
Treasury
Stock
|
Additional
Paid-in Capital
|
Accumulated
Other Comprehensive Income (Loss)
|
Retained
Earnings (Deficit)
|
Total
International Coal Group, Inc. Stockholders’ Equity
|
Noncontrolling
Interest
|
Total
Stockholders’ Equity
|
||||||||||||||||||||
Shares
|
Amount
|
||||||||||||||||||||||||||
Balance—December
31, 2006
|
|
152,906,488
|
|
$
|
1,529
|
$
|
—
|
$
|
633,937
|
$
|
(1,727
|
)
|
$
|
26,730
|
$
|
660,469
|
$
|
1,096
|
$
|
661,565
|
|||||||
Net
loss
|
|
—
|
|
—
|
—
|
—
|
—
|
(147,562
|
)
|
(147,562
|
)
|
(349
|
)
|
(147,911
|
)
|
||||||||||||
Postretirement
benefit obligation adjustments, net of tax of $1,362
|
|
—
|
|
—
|
—
|
—
|
(2,231
|
)
|
—
|
(2,231
|
)
|
—
|
(2,231
|
)
|
|||||||||||||
Amortization
of postretirement benefit net loss, net of tax of $109
|
|
—
|
|
—
|
—
|
—
|
174
|
—
|
174
|
—
|
174
|
||||||||||||||||
Black
lung benefit obligation adjustments, net of tax of $1,460
|
—
|
|
—
|
—
|
—
|
2,441
|
—
|
2,441
|
—
|
2,441
|
|||||||||||||||||
Amortization
of black lung benefit net gain, net of tax of $115
|
—
|
|
—
|
—
|
—
|
(187
|
)
|
—
|
(187
|
)
|
—
|
(187
|
)
|
||||||||||||||
Comprehensive
loss
|
|
—
|
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
(147,714
|
)
|
|||||||||||||||
Distributions
to noncontrolling interest
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
(712
|
)
|
(712
|
)
|
||||||||||||||||
Effect
of adoption of FIN 48
|
|
—
|
|
—
|
—
|
—
|
—
|
(112
|
)
|
(112
|
)
|
—
|
(112
|
)
|
|||||||||||||
Issuance
of restricted stock and stock awards, net of forfeitures
|
|
85,621
|
|
1
|
—
|
(1
|
)
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||
Compensation
expense on share based awards
|
|
—
|
|
—
|
—
|
5,224
|
—
|
—
|
5,224
|
—
|
5,224
|
||||||||||||||||
Equity
component of Convertible Senior Notes, due 2012
|
—
|
—
|
—
|
13,517
|
—
|
—
|
13,517
|
—
|
13,517
|
||||||||||||||||||
Balance—December
31, 2007
|
|
152,992,109
|
|
1,530
|
—
|
652,677
|
(1,530
|
)
|
(120,944
|
)
|
531,733
|
35
|
531,768
|
||||||||||||||
Net
loss
|
|
—
|
—
|
—
|
—
|
—
|
(26,227
|
)
|
(26,227
|
)
|
—
|
(26,227
|
)
|
||||||||||||||
Postretirement
benefit obligation adjustments, net of tax of $727
|
|
—
|
—
|
—
|
—
|
530
|
—
|
530
|
—
|
530
|
|||||||||||||||||
Amortization
of postretirement benefit net loss, net of tax of $214
|
|
—
|
—
|
—
|
—
|
216
|
—
|
216
|
—
|
216
|
|||||||||||||||||
Black
lung benefit obligation adjustments, net of tax of $548
|
—
|
—
|
—
|
—
|
(903
|
)
|
—
|
(903
|
)
|
—
|
(903
|
)
|
|||||||||||||||
Amortization
of black lung benefit net gain, net of tax of $358
|
—
|
—
|
—
|
—
|
(590
|
)
|
—
|
(590
|
)
|
—
|
(590
|
)
|
|||||||||||||||
Comprehensive
loss
|
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
(26,974
|
)
|
||||||||||||||||
Issuance
of restricted stock and stock awards, net of forfeitures
|
|
312,436
|
3
|
—
|
(3
|
)
|
—
|
—
|
—
|
—
|
—
|
||||||||||||||||
Stock
options exercised
|
17,700
|
—
|
—
|
149
|
—
|
—
|
149
|
—
|
149
|
||||||||||||||||||
Compensation
expense on share based awards
|
|
—
|
—
|
—
|
4,174
|
—
|
—
|
4,174
|
—
|
4,174
|
|||||||||||||||||
Balance—December
31, 2008
|
|
153,322,245
|
1,533
|
—
|
656,997
|
(2,277
|
)
|
(147,171
|
)
|
509,082
|
35
|
509,117
|
|||||||||||||||
Net
income
|
|
—
|
—
|
—
|
—
|
—
|
21,458
|
21,458
|
66
|
21,524
|
|||||||||||||||||
Postretirement
benefit obligation adjustments, net of tax of $323
|
|
—
|
—
|
—
|
—
|
2,663
|
—
|
2,663
|
—
|
2,663
|
|||||||||||||||||
Amortization
of postretirement benefit net loss, net of tax of $117
|
|
—
|
—
|
—
|
—
|
171
|
—
|
171
|
—
|
171
|
|||||||||||||||||
Black
lung benefit obligation adjustments, net of tax of $416
|
—
|
—
|
—
|
—
|
735
|
—
|
735
|
—
|
735
|
||||||||||||||||||
Amortization
of black lung benefit net gain, net of tax of $146
|
—
|
—
|
—
|
—
|
(244
|
)
|
—
|
(244
|
)
|
—
|
(244
|
)
|
|||||||||||||||
Comprehensive
income
|
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
24,849
|
|||||||||||||||||
Purchases
of treasury stock
|
(7,321
|
)
|
—
|
(14
|
)
|
—
|
—
|
—
|
(14
|
)
|
—
|
(14
|
)
|
||||||||||||||
Distributions
to noncontrolling interest
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
(40
|
)
|
(40
|
)
|
||||||||||||||||
Issuance
of common stock in exchange for convertible notes
|
18,660,550
|
187
|
—
|
71,430
|
—
|
—
|
71,617
|
—
|
71,617
|
||||||||||||||||||
Issuance
of restricted stock and stock awards, net of forfeitures
|
|
837,252
|
8
|
—
|
(8
|
)
|
—
|
—
|
—
|
—
|
—
|
||||||||||||||||
Compensation
expense on share based awards
|
|
—
|
—
|
—
|
3,705
|
—
|
—
|
3,705
|
—
|
3,705
|
|||||||||||||||||
Balance—December
31, 2009
|
|
172,812,726
|
$
|
1,728
|
$
|
(14
|
)
|
$
|
732,124
|
$
|
1,048
|
$
|
(125,713
|
)
|
$
|
609,173
|
$
|
61
|
$
|
609,234
|
Year
Ended December 31,
|
||||||||||||
|
2009
|
2008
|
2007
|
|||||||||
CASH
FLOWS FROM OPERATING ACTIVITIES:
|
|
|||||||||||
Net
income (loss)
|
|
$
|
21,524
|
$
|
(26,227
|
)
|
$
|
(147,911
|
)
|
|||
Adjustments
to reconcile net income (loss) to net cash from operating
activities:
|
|
—
|
—
|
|||||||||
Depreciation,
depletion and amortization
|
|
106,084
|
96,047
|
86,517
|
||||||||
Loss
on extinguishment of debt
|
13,293
|
—
|
—
|
|||||||||
Impairment
loss
|
|
—
|
37,428
|
170,402
|
||||||||
Amortization
of deferred finance costs and debt discount
|
|
7,001
|
6,141
|
9,516
|
||||||||
Amortization
of accumulated employee benefit obligations
|
|
(102
|
)
|
(518
|
)
|
(19
|
)
|
|||||
Compensation
expense on share based awards
|
|
3,705
|
4,174
|
5,224
|
||||||||
Gain
on sale of assets, net
|
|
(3,659
|
)
|
(32,518
|
)
|
(38,656
|
)
|
|||||
Provision
for bad debt
|
|
(1,294
|
)
|
994
|
503
|
|||||||
Deferred
income taxes
|
|
7,859
|
(24,434
|
)
|
(87,399
|
)
|
||||||
Changes
in Assets and Liabilities:
|
|
|||||||||||
Accounts
receivable
|
|
(3,676
|
)
|
7,918
|
(13,606
|
)
|
||||||
Inventories
|
|
(23,249
|
)
|
(17,333
|
)
|
(92
|
)
|
|||||
Prepaid
expenses and other
|
|
14,569
|
(3,545
|
)
|
3,202
|
|||||||
Other
non-current assets
|
|
399
|
(2,744
|
)
|
(457
|
)
|
||||||
Accounts
payable
|
|
(16,814
|
)
|
7,116
|
12,588
|
|||||||
Accrued
expenses and other
|
|
(13,089
|
)
|
24,677
|
11,648
|
|||||||
Reclamation
and mine closure costs
|
|
1,341
|
(5,281
|
)
|
5,509
|
|||||||
Other
liabilities
|
|
1,862
|
6,834
|
5,502
|
||||||||
Net
cash from operating activities
|
|
115,754
|
78,729
|
22,471
|
||||||||
CASH
FLOWS FROM INVESTING ACTIVITIES:
|
|
|||||||||||
Proceeds
from the sale of assets
|
|
3,695
|
8,786
|
46,524
|
||||||||
Additions
to property, plant, equipment and mine development
|
|
(66,345
|
)
|
(132,197
|
)
|
(160,807
|
)
|
|||||
Cash
paid related to acquisitions, net
|
|
—
|
(603
|
)
|
(12,717
|
)
|
||||||
Withdrawals
(deposits) of restricted cash
|
|
(10,468
|
)
|
(26
|
)
|
193
|
||||||
Contribution
to joint venture
|
|
(40
|
)
|
—
|
(100
|
)
|
||||||
Net
cash from investing activities
|
|
(73,158
|
)
|
(124,040
|
)
|
(126,907
|
)
|
|||||
CASH
FLOWS FROM FINANCING ACTIVITIES:
|
|
|||||||||||
Borrowings
on short-term debt
|
|
2,611
|
6,310
|
26,082
|
||||||||
Repayments
on short-term debt
|
|
(5,186
|
)
|
(1,569
|
)
|
(45,368
|
)
|
|||||
Borrowings
on long-term debt
|
|
9,086
|
3,496
|
65,000
|
||||||||
Repayments
on long-term debt and capital leases
|
|
(19,104
|
)
|
(6,295
|
)
|
(68,585
|
)
|
|||||
Purchases
of treasury stock
|
(14
|
)
|
—
|
—
|
||||||||
Debt
issuance costs
|
|
(1,278
|
)
|
—
|
(9,285
|
)
|
||||||
Proceeds
from stock options exercised
|
|
—
|
149
|
—
|
||||||||
Proceeds
from convertible notes offering
|
|
—
|
—
|
225,000
|
||||||||
Net
cash from financing activities
|
|
(13,885
|
)
|
2,091
|
192,844
|
|||||||
NET
CHANGE IN CASH AND CASH EQUIVALENTS
|
|
28,711
|
(43,220
|
)
|
88,408
|
|||||||
CASH
AND CASH EQUIVALENTS, BEGINNING OF PERIOD
|
|
63,930
|
107,150
|
18,742
|
||||||||
CASH
AND CASH EQUIVALENTS, END OF PERIOD
|
|
$
|
92,641
|
$
|
63,930
|
$
|
107,150
|
|||||
|
||||||||||||
Supplemental
information:
|
|
|||||||||||
Cash
paid for interest (net of amount capitalized)
|
|
$
|
47,327
|
$
|
36,193
|
$
|
20,113
|
|||||
Cash
received for income taxes
|
|
$
|
7,006
|
$
|
—
|
$
|
2,971
|
|||||
|
||||||||||||
Supplemental
disclosure of non-cash items:
|
|
|||||||||||
Issuance
of common stock in exchange for convertible notes
|
$
|
71,617
|
$
|
—
|
$
|
—
|
||||||
Purchases
of property, plant, equipment and mine development through accounts
payable
|
|
$
|
17,416
|
$
|
12,942
|
$
|
547
|
|||||
Purchases
of property, plant, equipment and mine development through financing
arrangements
|
|
$
|
17,066
|
$
|
40,708
|
$
|
10,971
|
|||||
Assets
acquired through the assumption of liabilities
|
|
$
|
—
|
$
|
17,464
|
$
|
2,016
|
|||||
Assets
acquired through the exchange of property
|
|
$
|
—
|
$
|
22,608
|
$
|
—
|
1.
|
ORGANIZATION
|
2.
|
SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES AND
GENERAL
|
Below-market
contracts
|
||||
2010
|
$
|
3,279
|
||
2011
|
3,548
|
|||
2012
|
3,548
|
|||
2013
|
3,548
|
|||
2014
|
3,548
|
Years
|
|||
Buildings
|
10 to 45
|
||
Mining
and other equipment and related facilities
|
1
to 20
|
||
Land
improvements
|
15 | ||
Transportation
equipment
|
2
to 7
|
||
Furniture
and fixtures
|
3
to 10
|
3.
|
INVENTORIES
|
|
2009
|
2008
|
||||||
Coal
|
|
$
|
49,120
|
$
|
28,436
|
|||
Parts
and supplies
|
|
35,065
|
32,159
|
|||||
Reserve
for obsolescence, parts and supplies
|
|
(2,148
|
)
|
(1,807
|
)
|
|||
Total
|
|
$
|
82,037
|
$
|
58,788
|
4.
|
PROPERTY,
PLANT, EQUIPMENT AND MINE
DEVELOPMENT
|
|
2009
|
2008
|
||||||
Coal
lands and mineral rights
|
|
$
|
586,706
|
$
|
586,512
|
|||
Plant
and equipment
|
|
620,451
|
571,083
|
|||||
Mine
development
|
|
195,756
|
181,876
|
|||||
Land
and land improvements
|
|
26,351
|
24,119
|
|||||
Coalbed
methane well development costs
|
|
14,889
|
14,889
|
|||||
|
1,444,153
|
1,378,479
|
||||||
Less
accumulated depreciation, depletion and amortization
|
|
(405,953
|
)
|
(309,182
|
)
|
|||
Net
property, plant and equipment
|
|
$
|
1,038,200
|
$
|
1,069,297
|
5.
|
GOODWILL
|
6.
|
ACCRUED
EXPENSES AND OTHER
|
2009
|
2008
|
|||||||
Compensation
and related expenses
|
$
|
33,414
|
$
|
38,076
|
||||
Interest
|
15,690
|
17,776
|
||||||
Royalties
|
6,177
|
5,826
|
||||||
Sales
and production related taxes
|
5,395
|
5,574
|
||||||
Deferred
revenue
|
454
|
5,506
|
||||||
Personal
property, land and mineral taxes
|
4,717
|
3,719
|
||||||
Transportation
|
1,946
|
3,453
|
||||||
Other
|
7,010
|
7,774
|
||||||
Total
|
$
|
74,803
|
$
|
87,704
|
7.
|
INVESTMENT
IN JOINT OPERATING AGREEMENT
|
8.
|
ACQUISITION
|
9.
|
DEBT
|
2009
|
2008
|
|||||||
9.00%
Convertible Senior Notes, due 2012, net of debt discount of $9,480 and $17,369,
respectively
|
$
|
152,022
|
$
|
207,631
|
||||
10.25%
Senior Notes, due 2014
|
175,000
|
175,000
|
||||||
Equipment
notes
|
54,417
|
43,378
|
||||||
Capital
leases and other
|
2,870
|
6,861
|
||||||
Total
|
384,309
|
432,870
|
||||||
Less
current portion
|
(17,794
|
)
|
(15,319
|
)
|
||||
Long-term
debt and capital lease
|
$
|
366,515
|
$
|
417,551
|
Year
ending December 31:
|
||||
2010
|
$
|
17,794
|
||
2011
|
16,263
|
|||
2012
|
175,547
|
|||
2013
|
8,338
|
|||
2014
|
175,847
|
|||
Thereafter
|
—
|
|||
Total
|
393,789
|
|||
Less
debt discount
|
(9,480
|
)
|
||
Total
|
$
|
384,309
|
10.
|
ASSET
RETIREMENT OBLIGATION
|
|
2009
|
2008
|
||||||
Balance
at beginning of year
|
|
$
|
79,246
|
$
|
85,920
|
|||
Revisions
of estimated cash flows
|
|
(3,574
|
)
|
(5,896
|
)
|
|||
Liabilities
incurred (net of disposals) or assumed in acquisitions
|
|
(546
|
)
|
1,438
|
||||
Expenditures
|
|
(7,566
|
)
|
(9,594
|
)
|
|||
Accretion
|
|
7,431
|
7,378
|
|||||
Balance
at end of year
|
|
$
|
74,991
|
$
|
79,246
|
|
2009
|
2008
|
||||||
Current
portion of reclamation and mine closure costs
|
|
$
|
9,390
|
$
|
11,139
|
|||
Non-current
portion of reclamation and mine closure costs
|
|
65,601
|
68,107
|
|||||
Total
|
|
$
|
74,991
|
$
|
79,246
|
11.
|
INCOME
TAXES
|
|
2009
|
2008
|
2007
|
|||||||||
Current:
|
||||||||||||
Federal
|
$
|
(1,249
|
)
|
$
|
374
|
$
|
1,046
|
|||||
State
|
1,122
|
390
|
409
|
|||||||||
(127
|
)
|
764
|
1,455
|
|||||||||
Deferred:
|
||||||||||||
Federal
|
5,582
|
(21,877
|
)
|
(75,684
|
)
|
|||||||
State
|
2,277
|
(2,557
|
)
|
(11,715
|
)
|
|||||||
7,859
|
(24,434
|
)
|
(87,399
|
)
|
||||||||
Income
tax (benefit) expense
|
$
|
7,732
|
$
|
(23,670
|
)
|
$
|
(85,944
|
)
|
|
2009
|
2008
|
2007
|
|||||||||
Federal
income tax benefit computed at statutory rate
|
|
$
|
10,298
|
$
|
(17,464
|
)
|
$
|
(81,727
|
)
|
|||
State
income tax expense (net of federal tax benefits) computed at statutory
rate
|
|
2,235
|
(1,414
|
)
|
(7,345
|
)
|
||||||
Percentage
depletion in excess of tax basis at statutory rate
|
|
(9,204
|
)
|
(6,477
|
)
|
(1,784
|
)
|
|||||
Penalties
|
1,007
|
1,869
|
—
|
|||||||||
Goodwill
impairment
|
|
—
|
(490
|
)
|
4,046
|
|||||||
Loss
on extinguishment of debt
|
2,841
|
—
|
—
|
|||||||||
Other
|
|
555
|
306
|
866
|
||||||||
Income
tax (benefit) expense
|
|
$
|
7,732
|
$
|
(23,670
|
)
|
$
|
(85,944
|
)
|
|
2009
|
2008
|
||||||
Deferred
tax assets:
|
|
|||||||
Accrued
employee benefits
|
|
$
|
26,526
|
$
|
22,772
|
|||
Accrued
reclamation and closure
|
|
30,810
|
30,274
|
|||||
Below-market
contracts
|
|
10,124
|
15,691
|
|||||
NOL
carryover
|
|
79,510
|
71,305
|
|||||
Goodwill
|
|
50,528
|
53,960
|
|||||
Other
|
|
16,502
|
19,705
|
|||||
Total
deferred tax assets
|
|
214,000
|
213,707
|
|||||
Valuation
allowance for deferred tax assets
|
(2,561
|
)
|
(2,396
|
)
|
||||
Total deferred tax assets, net of valuation allowance | 211,439 | 211,311 | ||||||
Deferred
tax liabilities:
|
|
|||||||
Property,
coal lands and mine development costs
|
|
(246,579
|
)
|
(232,937
|
)
|
|||
Other
|
|
(6,353
|
)
|
(11,879
|
)
|
|||
Total
deferred tax liabilities
|
|
(252,932
|
)
|
(244,816
|
)
|
|||
Net
deferred tax liability
|
|
$
|
(41,493
|
)
|
$
|
(33,505
|
)
|
|
|
||||||||
Classified
in balance sheet:
|
|
|||||||
Deferred
income taxes—current
|
|
$
|
15,906
|
$
|
17,649
|
|||
Deferred
income taxes—non-current
|
|
(57,399
|
)
|
(51,154
|
)
|
|||
Total
|
|
$
|
(41,493
|
)
|
$
|
(33,505
|
)
|
12.
|
EMPLOYEE
BENEFITS
|
2009
|
2008
|
|||||||
Postretirement
benefits
|
$
|
30,048
|
$
|
27,974
|
||||
Black
lung benefits
|
25,936
|
22,824
|
||||||
Workers’
compensation benefits
|
10,307
|
7,847
|
||||||
Coal
Act benefits
|
1,449
|
1,277
|
||||||
Total
|
67,740
|
59,922
|
||||||
Less
current portion
|
(3,973
|
)
|
(3,359
|
)
|
||||
Employee
benefits—non-current
|
$
|
63,767
|
$
|
56,563
|
|
2009
|
2008
|
||||||
Changes
in Benefit Obligations:
|
|
|||||||
Accumulated
benefit obligations at beginning of period
|
|
$
|
27,974
|
$
|
25,024
|
|||
Service
cost
|
|
3,335
|
2,607
|
|||||
Interest
cost
|
|
1,748
|
1,627
|
|||||
Actuarial
gain
|
|
(2,986
|
)
|
(1,257
|
)
|
|||
Benefits
paid
|
|
(23
|
)
|
(27
|
)
|
|||
Accumulated
benefit obligation at end of period
|
|
30,048
|
27,974
|
|||||
Fair
value of plan assets at end of period
|
|
—
|
—
|
|||||
Net
liability recognized
|
|
$
|
30,048
|
$
|
27,974
|
|
2009
|
2008
|
2007
|
|||||||||
Balance
at beginning of year
|
|
$
|
8,548
|
$
|
10,235
|
$
|
6,925
|
|||||
Actuarial
(gain) loss
|
|
(2,986
|
)
|
(1,257
|
)
|
3,593
|
||||||
Amortization
of actuarial loss
|
|
(288
|
)
|
(430
|
)
|
(283
|
)
|
|||||
Balance
at end of year
|
|
$
|
5,274
|
$
|
8,548
|
$
|
10,235
|
|
2009
|
2008
|
2007
|
|||||||||
Net
periodic benefit cost:
|
|
|
||||||||||
Service
cost
|
|
$
|
3,335
|
$
|
2,607
|
|
$
|
2,057
|
||||
Interest
cost
|
|
1,748
|
1,627
|
|
1,054
|
|||||||
Amortization
of actuarial loss
|
|
288
|
430
|
|
283
|
|||||||
Benefit
cost
|
|
$
|
5,371
|
$
|
4,664
|
|
$
|
3,394
|
2010
|
|
$
|
430
|
2011
|
|
813
|
|
2012
|
|
1,278
|
|
2013
|
|
1,806
|
|
2014
|
|
2,261
|
|
2015
– 2019
|
|
20,937
|
|
Total
|
|
$
|
27,525
|
|
2009
|
2008
|
||||||
Changes
in Benefit Obligations:
|
|
|||||||
Accumulated
benefit obligations at beginning of period
|
|
$
|
22,824
|
$
|
17,758
|
|||
Service
cost
|
|
2,771
|
2,045
|
|||||
Interest
cost
|
|
1,579
|
1,611
|
|||||
Actuarial
(gain) loss
|
|
(1,151
|
)
|
1,451
|
||||
Benefits
paid
|
|
(87
|
)
|
(41
|
)
|
|||
Accumulated
benefit obligation at end of period
|
|
25,936
|
22,824
|
|||||
Fair
value of plan assets at end of period
|
|
—
|
—
|
|||||
Net
liability
|
|
$
|
25,936
|
$
|
22,824
|
|
2009
|
2008
|
2007
|
|||||||||
Balance
at beginning of year
|
|
$
|
(4,631
|
)
|
$
|
(7,030
|
)
|
$
|
(3,431
|
)
|
||
Actuarial
(gain) loss
|
|
(1,151
|
)
|
1,451
|
(3,901
|
)
|
||||||
Amortization
of actuarial gain
|
|
390
|
948
|
302
|
||||||||
Balance
at end of year
|
|
$
|
(5,392
|
)
|
$
|
(4,631
|
)
|
$
|
(7,030
|
)
|
|
2009
|
2008
|
2007
|
|||||||||
Net
periodic benefit cost:
|
|
|
||||||||||
Service
cost
|
|
$
|
2,771
|
$
|
2,045
|
$
|
2,799
|
|
||||
Interest
cost
|
|
1,579
|
1,611
|
1,262
|
|
|||||||
Amortization
of actuarial gain
|
|
(390
|
)
|
(948
|
)
|
(302
|
)
|
|||||
Benefit
cost
|
|
$
|
3,960
|
$
|
2,708
|
$
|
3,759
|
|
2010
|
|
$
|
346
|
2011
|
|
823
|
|
2012
|
|
837
|
|
2013
|
|
1,039
|
|
2014
|
|
1,459
|
|
2015
– 2019
|
|
11,202
|
|
Total
|
|
$
|
15,706
|
13.
|
EMPLOYEE
STOCK AWARDS
|
2009
|
2008
|
2007
|
||||||||||
Expected
term (in years)
|
5
|
5
|
5
|
|||||||||
Expected
volatility
|
48.2%
- 50.8
|
%
|
43.0%
- 48.2
|
%
|
43.0%
- 48.1
|
%
|
||||||
Weighted-average
volatility
|
50.8
|
%
|
43.5
|
%
|
43.2
|
%
|
||||||
Risk-free
rate
|
1.4%
- 2.8
|
%
|
1.7%
- 3.7
|
%
|
4.0%
- 5.1
|
%
|
||||||
Expected
dividends
|
—
|
—
|
—
|
Options
|
Shares
|
Weighted-
Average
Exercise
Price
|
Weighted-
Average
Remaining
Contractual
Term
(years)
|
Aggregate
Intrinsic
Value
|
||||||||||||
Outstanding
at January 1, 2009
|
2,831,192 | $ | 7.88 | |||||||||||||
Granted
|
2,329,156 | 1.54 | ||||||||||||||
Exercised
|
— | — | ||||||||||||||
Forfeited
and expired
|
(125,738 | ) | 5.71 | |||||||||||||
Outstanding
at December 31, 2009
|
5,034,610 | 5.00 | 7.95 | $ | 5,328 | |||||||||||
Vested or expected to vest at December
31, 2009
|
4,762,538 | 5.12 | 7.90 | $ | 4,873 | |||||||||||
Exercisable
at December 31, 2009
|
1,834,958 | 8.60 | 6.42 | $ | 19 |
Nonvested
Shares
|
Shares
|
Weighted-
Average Grant-Date
Fair
Value
|
||||||
Nonvested
at January 1, 2009
|
556,344
|
$
|
7.00
|
|||||
Granted
|
852,097
|
1.56
|
||||||
Vested
|
(224,445
|
)
|
7.35
|
|||||
Forfeited
|
(35,517
|
)
|
4.41
|
|||||
Nonvested
at December 31, 2009
|
1,148,479
|
2.97
|
14.
|
VARIABLE
INTEREST ENTITIES
|
2009
|
2008
|
|
2007
|
|||||||||
Assets
|
$
|
188
|
$
|
213
|
|
$
|
257
|
|||||
Liabilities
|
65
|
138
|
|
187
|
||||||||
Revenue
|
—
|
—
|
|
1,808
|
||||||||
Net
income (loss)
|
66
|
—
|
|
(403
|
)
|
15.
|
EARNINGS
PER SHARE
|
2009
|
|
2008
|
2007
|
|||||||||
Net
income (loss) attributable to International Coal Group,
Inc.
|
$
|
21,458
|
|
$
|
(26,227
|
)
|
$
|
(147,562
|
)
|
|||
|
||||||||||||
Average
common shares outstanding—Basic
|
153,630,446
|
|
152,632,586
|
152,304,461
|
||||||||
Incremental
shares arising from:
|
|
|||||||||||
Stock
options
|
290,019
|
|
—
|
—
|
||||||||
Restricted
shares
|
1,367,577
|
—
|
—
|
|||||||||
Restricted
share units
|
98,221
|
—
|
—
|
|||||||||
Convertible
senior notes
|
—
|
—
|
—
|
|||||||||
Average
common shares outstanding—Diluted
|
155,386,263
|
|
152,632,586
|
152,304,461
|
||||||||
|
||||||||||||
Earnings
Per Share:
|
|
|||||||||||
Basic
|
$
|
0.14
|
|
$
|
(0.17
|
)
|
$
|
(0.97
|
)
|
|||
Diluted
|
0.14
|
(0.17
|
)
|
(0.97
|
)
|
16.
|
COMMITMENTS
AND CONTINGENCIES
|
Royalties
|
Operating
Leases
|
Capital
Leases
|
||||||||||
Year
ended December 31,
|
||||||||||||
2010
|
$
|
10,462
|
$
|
98
|
$
|
1,726
|
||||||
2011
|
10,201
|
56
|
1,151
|
|||||||||
2012
|
8,288
|
23
|
—
|
|||||||||
2013
|
7,875
|
8
|
—
|
|||||||||
2014
|
7,660
|
7
|
—
|
|||||||||
Thereafter
|
29,815
|
2
|
—
|
|||||||||
Total
minimum lease payments
|
$
|
74,301
|
$
|
194
|
$
|
2,877
|
||||||
Less—amount
representing interest
|
(247
|
)
|
||||||||||
Present
value of minimum lease payments
|
2,630
|
|||||||||||
Less—current
portion
|
(1,523
|
)
|
||||||||||
Total
long-term portion of capital leases
|
$
|
1,107
|
17.
|
CONCENTRATION
OF CREDIT RISK AND MAJOR CUSTOMERS
|
18.
|
FAIR
VALUE OF FINANCIAL INSTRUMENTS
|
19.
|
RELATED
PARTY TRANSACTIONS AND BALANCES
|
20.
|
SEGMENT
INFORMATION
|
Central
Appalachian
|
Northern
Appalachian
|
Illinois
Basin
|
Ancillary
|
Consolidated
|
||||||||||||||||
Revenue
|
$
|
734,687
|
$
|
223,486
|
$
|
83,908
|
$
|
83,268
|
$
|
1,125,349
|
||||||||||
Adjusted
EBITDA
|
169,842
|
31,005
|
14,405
|
(13,575
|
)
|
201,677
|
||||||||||||||
Depreciation,
depletion and amortization
|
71,298
|
20,991
|
7,957
|
5,838
|
106,084
|
|||||||||||||||
Capital
expenditures
|
44,289
|
21,159
|
17,573
|
4,864
|
87,885
|
|||||||||||||||
Total
assets
|
723,818
|
184,626
|
55,311
|
404,205
|
1,367,960
|
Central
Appalachian
|
Northern
Appalachian
|
Illinois
Basin
|
Ancillary
|
Consolidated
|
||||||||||||||||
Revenue
|
$
|
702,958
|
$
|
230,660
|
$
|
79,682
|
$
|
83,436
|
$
|
1,096,736
|
||||||||||
Adjusted
EBITDA
|
107,186
|
23,687
|
14,784
|
(18,436
|
)
|
127,221
|
||||||||||||||
Depreciation,
depletion and amortization
|
64,132
|
17,884
|
7,342
|
6,689
|
96,047
|
|||||||||||||||
Impairment
losses
|
—
|
7,191
|
—
|
30,237
|
37,428
|
|||||||||||||||
Capital
expenditures
|
112,617
|
41,760
|
7,148
|
11,070
|
172,595
|
|||||||||||||||
Total
assets
|
751,986
|
184,846
|
40,850
|
372,965
|
1,350,647
|
Central
Appalachian
|
Northern
Appalachian
|
Illinois
Basin
|
Ancillary
|
Consolidated
|
||||||||||||||||
Revenue
|
$
|
530,255
|
$
|
133,284
|
$
|
68,440
|
$
|
117,176
|
$
|
849,155
|
||||||||||
Adjusted
EBITDA
|
47,442
|
(22,215
|
)
|
15,463
|
18,363
|
59,053
|
||||||||||||||
Depreciation,
depletion and amortization
|
60,015
|
9,467
|
6,527
|
10,508
|
86,517
|
|||||||||||||||
Impairment
losses
|
170,402
|
—
|
—
|
—
|
170,402
|
|||||||||||||||
Capital
expenditures
|
129,353
|
37,940
|
2,639
|
11,695
|
181,627
|
|||||||||||||||
Total
assets
|
653,620
|
161,350
|
37,861
|
450,532
|
1,303,363
|
|||||||||||||||
Goodwill
|
—
|
—
|
—
|
30,237
|
30,237
|
Year
Ended December 31,
|
||||||||||||
|
2009
|
2008
|
2007
|
|||||||||
Net
income (loss) attributable to International Coal Group,
Inc.
|
|
$
|
21,458
|
$
|
(26,227
|
)
|
$
|
(147,562
|
)
|
|||
Depreciation,
depletion and amortization
|
|
106,084
|
96,047
|
86,517
|
||||||||
Interest
expense, net
|
|
53,044
|
43,643
|
35,989
|
||||||||
Income
tax expense (benefit)
|
|
7,732
|
(23,670
|
)
|
(85,944
|
)
|
||||||
Loss
on extinguishment of debt
|
13,293
|
—
|
—
|
|||||||||
Impairment
loss
|
|
—
|
37,428
|
170,402
|
||||||||
Noncontrolling
interest
|
|
66
|
—
|
(349
|
)
|
|||||||
Adjusted
EBITDA
|
|
$
|
201,677
|
$
|
127,221
|
$
|
59,053
|
21.
|
SUPPLEMENTARY
GUARANTOR INFORMATION
|
22.
|
QUARTERLY
DATA
|
|
2009
|
|||||||||||||||
|
Three months
ended
March 31
|
Three months
ended
June 30
|
Three months
ended
September 30
|
Three months
ended
December 31
|
||||||||||||
Revenue
|
|
$
|
304,966
|
$
|
277,797
|
$
|
296,622
|
$
|
245,964
|
|||||||
Income
from operations
|
|
18,235
|
26,205
|
37,689
|
13,464
|
|||||||||||
Net
income (loss) attributable to International Coal Group,
Inc.
|
|
3,693
|
10,382
|
18,716
|
(11,333
|
)
|
||||||||||
Basic
earnings per common share
|
|
$
|
0.02
|
$
|
0.07
|
$
|
0.12
|
$
|
(0.07
|
)
|
||||||
Diluted
earnings per common share
|
|
$
|
0.02
|
$
|
0.07
|
$
|
0.12
|
$
|
(0.07
|
)
|
|
2008
|
|||||||||||||||
|
Three months
ended
March 31
|
Three months
ended
June 30
|
Three months
ended
September 30
|
Three months
ended
December 31
|
||||||||||||
Revenue
|
|
$
|
251,925
|
$
|
277,885
|
$
|
309,199
|
$
|
257,727
|
|||||||
Income
(loss) from operations
|
|
(7,369
|
)
|
30,461
|
20,726
|
(50,072
|
)
|
|||||||||
Net
income (loss) attributable to International Coal Group,
Inc.
|
|
(11,913
|
)
|
13,770
|
9,324
|
(37,408
|
)
|
|||||||||
Basic
earnings per common share
|
|
$
|
(0.08
|
)
|
$
|
0.09
|
$
|
0.06
|
$
|
(0.24
|
)
|
|||||
Diluted
earnings per common share
|
|
$
|
(0.08
|
)
|
$
|
0.08
|
$
|
0.06
|
$
|
(0.24
|
)
|
23.
|
SUBSEQUENT
EVENTS
|
|
December
31,
2009
|
December 31,
2008
|
||||||
ASSETS
|
|
|||||||
CURRENT
ASSETS:
|
||||||||
Prepaid
expenses and other
|
$
|
391
|
$
|
—
|
||||
DEBT
ISSUANCE COSTS, net
|
|
5,822
|
8,851
|
|||||
DEFERRED
INCOME TAXES
|
|
37,877
|
18,806
|
|||||
INVESTMENT
IN SUBSIDIARIES
|
906,952
|
877,885
|
||||||
Total
assets
|
|
$
|
951,042
|
$
|
905,542
|
|||
|
||||||||
LIABILITIES
AND STOCKHOLDERS’ EQUITY
|
|
|||||||
CURRENT
LIABILITIES:
|
|
|||||||
Accounts
payable
|
$
|
451
|
$
|
—
|
||||
Accrued
expenses and other
|
14,396
|
16,709
|
||||||
Total
current liabilities
|
14,847
|
16,709
|
||||||
LONG-TERM
DEBT
|
|
327,022
|
382,631
|
|||||
Total
liabilities
|
|
341,869
|
399,340
|
|||||
COMMITMENTS
AND CONTINGENCIES
|
|
|||||||
STOCKHOLDERS’
EQUITY:
|
|
|||||||
Preferred
stock–par value $0.01, 200,000,000 shares authorized, none
issued
|
|
—
|
—
|
|||||
Common
stock–par value $0.01, 2,000,000,000 shares authorized, 172,820,047 and
172,812,726 shares issued and outstanding, respectively, as of December
31, 2009 and 153,322,245 shares issued and outstanding, as of December 31,
2008
|
|
1,728
|
1,533
|
|||||
Treasury
stock
|
(14
|
)
|
—
|
|||||
Additional
paid-in capital
|
|
732,124
|
656,997
|
|||||
Accumulated
other comprehensive income (loss)
|
|
1,048
|
(5,157
|
)
|
||||
Retained
deficit
|
|
(125,713
|
)
|
(147,171
|
)
|
|||
Total
stockholders’ equity
|
|
609,173
|
506,202
|
|||||
Total
liabilities and stockholders’ equity
|
|
$
|
951,042
|
$
|
905,542
|
Year
Ended December 31,
|
||||||||||||
|
2009
|
2008
|
2007
|
|||||||||
INCOME
FROM OPERATIONS
|
|
$
|
—
|
$
|
—
|
$
|
—
|
|||||
INTEREST
AND OTHER INCOME (EXPENSE):
|
|
|||||||||||
Loss
on extinguishment of debt
|
(13,293
|
)
|
—
|
—
|
||||||||
Interest
expense, net
|
|
(44,002
|
)
|
(42,905
|
)
|
(28,579
|
)
|
|||||
Loss
before income taxes
|
|
(57,295
|
)
|
(42,905
|
)
|
(28,579
|
)
|
|||||
INCOME
TAX BENEFIT
|
|
19,071
|
16,218
|
10,803
|
||||||||
EQUITY
IN NET INCOME (LOSS) OF SUBSIDIARIES
|
59,682
|
460
|
(129,786
|
)
|
||||||||
Net
income (loss)
|
|
$
|
21,458
|
$
|
(26,227
|
)
|
$
|
(147,562
|
)
|
|||
|
||||||||||||
Earnings
per share:
|
|
|||||||||||
Basic
|
|
$
|
0.14
|
$
|
(0.17
|
)
|
$
|
(0.97
|
)
|
|||
Diluted |
0.14
|
(0.17
|
)
|
(0.97
|
)
|
|||||||
Weighted-average
common shares outstanding:
|
|
|||||||||||
Basic
|
|
153,630,446
|
152,632,586
|
152,304,461
|
||||||||
Diluted
|
|
155,386,263
|
152,632,586
|
152,304,461
|
Year
Ended December 31,
|
||||||||||||
|
2009
|
2008
|
2007
|
|||||||||
NET
CASH FROM OPERATING ACTIVITIES
|
|
$
|
(40,453
|
)
|
$
|
(38,266
|
)
|
$
|
(19,036
|
)
|
||
CASH
FLOWS FROM INVESTING ACTIVITIES:
|
|
|||||||||||
Investment
in subsidiaries
|
|
40,511
|
38,266
|
(198,121
|
)
|
|||||||
Net
cash from investing activities
|
|
40,511
|
38,266
|
(198,121
|
)
|
|||||||
CASH
FLOWS FROM FINANCING ACTIVITIES:
|
|
|||||||||||
Proceeds
from convertible notes offering
|
|
—
|
—
|
225,000
|
||||||||
Debt
issuance costs
|
|
(58
|
)
|
—
|
(7,843
|
)
|
||||||
Net
cash from financing activities
|
|
(58
|
)
|
—
|
217,157
|
|||||||
NET
CHANGE IN CASH AND CASH EQUIVALENTS
|
|
—
|
—
|
—
|
||||||||
CASH
AND CASH EQUIVALENTS, BEGINNING OF PERIOD
|
|
—
|
—
|
—
|
||||||||
CASH
AND CASH EQUIVALENTS, END OF PERIOD
|
|
$
|
—
|
$
|
—
|
$
|
—
|
LONG-TERM
DEBT
|
2009
|
2008
|
|||||||
9.00%
Convertible Senior Notes, due 2012, net of debt discount of $9,480 and
$17,369, respectively
|
$
|
152,022
|
$
|
207,631
|
||||
10.25%
Senior Notes, due 2014
|
175,000
|
175,000
|
||||||
Long-term
debt
|
$
|
327,022
|
$
|
382,631
|
Year
ending December 31:
|
||||
2010
|
$ |
—
|
||
2011
|
—
|
|||
2012
|
161,502
|
|||
2013
|
—
|
|||
2014
|
175,000
|
|||
Total
|
336,502
|
|||
Less
debt discount
|
(9,480
|
)
|
||
Total
|
$
|
327,022
|
Description
|
Balance at
Beginning
of
Period
|
Charged to
Revenue,
Costs
or
Expenses
|
Other
Additions
(Deductions)
|
Balance at
End
of
Period
|
||||||||||||
(in
thousands)
|
||||||||||||||||
Year
ended December 31, 2009
|
||||||||||||||||
Allowance
for doubtful accounts
|
$
|
1,516
|
$
|
(1,294
|
)
|
$
|
—
|
$
|
222
|
|||||||
Reserve
for inventory obsolescence
|
1,807
|
341
|
—
|
2,148
|
||||||||||||
Reserve
for loss—advance royalties
|
3,909
|
1,438
|
(1,141
|
)
|
4,206
|
|||||||||||
Year
ended December 31, 2008
|
||||||||||||||||
Allowance
for doubtful accounts
|
$
|
539
|
$
|
994
|
$
|
(17
|
)
|
$
|
1,516
|
|||||||
Reserve
for inventory obsolescence
|
778
|
1,029
|
—
|
1,807
|
||||||||||||
Reserve
for loss—advance royalties
|
3,771
|
630
|
(492
|
)
|
3,909
|
|||||||||||
Year
ended December 31, 2007
|
||||||||||||||||
Allowance
for doubtful accounts
|
$
|
36
|
$
|
503
|
$
|
—
|
$
|
539
|
||||||||
Reserve
for inventory obsolescence
|
576
|
(82
|
)
|
284
|
778
|
|||||||||||
Reserve
for loss—advance royalties
|
638
|
3,414
|
(281
|
)
|
3,771
|
INTERNATIONAL
COAL GROUP, INC.
|
|
By:
|
/s/
Bennett K. Hatfield
|
Bennett
K. Hatfield
President
and Chief Executive Officer
|
Signature
|
|
Title
|
Date
|
|
/s/
Bennett K. Hatfield
|
President,
Chief Executive Officer and Director
|
January
29, 2010
|
||
Bennett
K. Hatfield
|
(Principal
Executive Officer)
|
|||
/s/
Bradley W. Harris
|
|
Senior
Vice President, Chief Financial Officer and Treasurer
|
January
29, 2010
|
|
Bradley
W. Harris
|
|
(Principal
Accounting and Principal Financial Officer)
|
||
*
|
|
Non-Executive
Chairman and Director
|
January
29, 2010
|
|
Wilbur L. Ross,
Jr.
|
||||
*
|
|
Director
|
January
29, 2010
|
|
Maurice
E. Carino, Jr.
|
|
|||
*
|
|
Director
|
January
29, 2010
|
|
Cynthia
B. Bezik
|
|
|||
*
|
|
Director
|
January
29, 2010
|
|
William
J. Catacosinos
|
|
|||
*
|
|
Director
|
January
29, 2010
|
|
Stanley
N. Gaines
|
|
|||
*
|
|
Director
|
January
29, 2010
|
|
Samuel
A. Mitchell
|
|
|||
*
|
|
Director
|
January
29, 2010
|
|
Wendy
L. Teramoto
|
|
*
|
The
undersigned, by signing his name hereto, does sign and execute this Annual
Report on Form 10-K pursuant to the Powers of Attorney executed by the
above-named officers and Directors of the Company and filed with the
Securities and Exchange Commission on behalf of such officers and
Directors.
|
INTERNATIONAL
COAL GROUP, INC.
|
|
By:
|
/s/
Bennett K. Hatfield
|
Bennett
K. Hatfield, Attorney-in-Fact
|
Exhibit No.
|
|
Description
|
|
Note
|
|
3.1
|
|
Form
of Second Amended and Restated Certificate of Incorporation of
International Coal Group, Inc.
|
|
(E)
|
|
3.2
|
|
Form
of Second Amended and Restated By-Laws of International Coal Group, Inc.,
as further amended on November 28, 2007
|
|
(F)
|
|
4.1
|
|
Form
of Certificate of International Coal Group, Inc. Common
Stock
|
|
(D)
|
|
4.2
|
|
Registration
Rights Agreement by and between International Coal Group, Inc., WLR
Recovery Fund II, L.P., Contrarian Capital Management LLC, Värde Partners,
Inc., Greenlight Capital, Inc., and Stark Trading, Shepherd International
Coal Holdings Inc.
|
|
(B)
|
|
4.3
|
|
Form
of Registration Rights Agreement between International Coal Group, Inc.
and certain former Anker Stockholders and CoalQuest
members
|
|
(C)
|
|
4.4
|
Registration
Rights Agreement, dated as of July 31, 2007, among International Coal
Group, Inc., the guarantors party thereto and UBS Securities LLC, as
purchaser
|
(J)
|
|||
4.5
|
|
Registration
Rights Agreement, dated May 16, 2008, among International Coal Group, Inc.
and Fairfax Financial Holdings Limited
|
|
(R)
|
|
4.6
|
|
Indenture,
dated June 23, 2006, among International Coal Group, Inc., the guarantors
party thereto and The Bank of New York Trust Company, N.A., as Trustee,
relating to International Coal Group, Inc.’s 10.25% Senior
Notes
|
|
(H)
|
|
4.7
|
|
Form
of 10.25% Senior Note (included in Exhibit 4.6)
|
|
(H)
|
|
4.8
|
|
Form
of Guarantee relating to International Coal Group, Inc.’s 10.25% Senior
Notes (included in Exhibit 4.6)
|
|
(H)
|
|
4.9
|
First
Supplemental Indenture, dated December 3, 2009, among International Coal
Group, Inc., the guarantors party thereto and The Bank of New York Mellon
Trust Company, N.A., as Trustee, relating to International Coal Group,
Inc.’s 10.25% Senior Notes
|
(S)
|
|||
4.10
|
|
Indenture,
dated as of July 31, 2007, among International Coal Group, Inc., the
guarantors party thereto and The Bank of New York Trust Company, N.A., as
Trustee, relating to International Coal Group, Inc.’s 9.00% Convertible
Senior Notes
|
|
(J)
|
|
4.11
|
Form
of 9.00% Convertible Senior Note (included in Exhibit 4.9)
|
(J)
|
|||
4.12
|
|
Form
of Guarantee relating to International Coal Group, Inc.’s 9.00%
Convertible Senior Notes
|
|
(J)
|
|
4.13
|
First
Supplemental Indenture, dated December 3, 2009, among International Coal
Group, Inc., the guarantors party thereto and The Bank of New York Mellon
Trust Company, N.A., as Trustee, relating to International Coal Group,
Inc.’s 9.00% Convertible Senior Notes
|
(S)
|
|||
Exhibit No.
|
|
Description
|
|
Note
|
|
10.3
|
|
Advisory
Services Agreement effective as of October 1, 2004 between International
Coal Group, LLC and W.L. Ross & Co. LLC
|
|
(A)
|
|
10.4
|
|
Amended
and Restated Employment Agreement dated as of December 31, 2009 by and
between Bennett K. Hatfield and International Coal Group,
Inc.
|
|
(S)
|
|
10.6
|
|
International
Coal Group, Inc. Amended and Restated 2005 Equity and Performance
Incentive Plan
|
|
(Q)
|
|
10.7
|
|
International
Coal Group, Inc. 2005 Equity and Performance Incentive Plan: Incentive
Stock Option Agreement
|
|
(D)
|
|
10.8
|
|
International
Coal Group, Inc. 2005 Equity and Performance Incentive Plan: Non-Qualified
Stock Option Agreement
|
|
(D)
|
|
10.9
|
|
International
Coal Group, Inc. 2005 Equity and Performance Incentive Plan: Restricted
Share Agreement
|
|
(D)
|
|
10.10
|
|
Form
of Indemnification Agreement
|
|
(D)
|
|
10.11
|
Form
of Non-Employee Director Restricted Share Unit Agreement
|
(O)
|
|||
10.12
|
|
International
Coal Group, Inc. Executive Severance Plan
|
|
(I)
|
|
10.13
|
|
Fee
Lease between Kentucky Union Company, lessor, and ICG Hazard, LLC
(assigned from Leslie Resources, Inc.), lessee, of Flint Ridge Surface
Mine, amended by:
|
|
(C)
|
|
|
(a) Assignment
of Real Property Agreements, dated September 30, 2004, assigning
to ICG Hazard, LLC
|
|
|||
10.14
|
|
Coal
Lease between Knight-Ink Heirs, lessor, and ICG Eastern, LLC (assigned
from Cherry River Coal and Coke Company), lessee, of Birch River Mine,
amended by:
|
|
(C)
|
|
|
(a) Partial
Assignment of Lease, dated September 20, 1984, assigning to Twin River
Coal Co.
|
|
|||
|
(b) General
Conveyance, Assignment and Transfer, dated December 8, 1988, assigning to
Island Creek Coal Co.
|
|
|||
|
(c) Assignment,
dated December 18, 1990, assigning to Laurel Run Mining
Co.
|
|
|||
|
(d) Consent
Letter, dated as of October 25, 1995
|
|
|||
|
(e) Partial
Assignment, dated October 30, 1995, assigning to East Kentucky Energy
Corp.
|
|
|||
|
(f) Assignment,
dated October 30, 1995, assigning to East Kentucky Energy
Corp.
|
|
|||
|
(g) Assignment
of Real Property Agreements, dated September 30, 2004, assigning to
ICG Eastern, LLC
|
|
Exhibit No.
|
|
Description
|
|
Note
|
|
10.15
|
|
Coal
Lease between NGHD Lands, et. al., lessor, and ICG Eastern, LLC
(assigned from Coastal Coal-West Virginia, LLC), lessee, of Birch River
Mine, amended by:
|
|
(C)
|
|
(a) Lease
and Sublease Agreement, dated March 14, 2001
|
|||||
(b) Memorandum
of Lease and Sublease Agreement, dated June 1, 2001
|
|||||
(c) Assignment
of Real Property Agreements, dated September 30, 2004, assigning to
ICG Eastern, LLC
|
|||||
10.17
|
|
Fee
Lease between M-B, LLC, lessor, and ICG Eastern, LLC (assigned from ANR
Coal Development Company), lessee, of Birch River Mine, amended
by:
|
|
(C)
|
|
(a) Lease
and Sublease Agreement, dated March 14, 2001
|
|||||
(b) Memorandum
of Lease and Sublease Agreement, dated June 1, 2001
|
|||||
(c) Assignment
of Real Property Agreements, dated September 30, 2004, assigning to
ICG Eastern, LLC
|
|||||
10.18
|
|
Fee
Lease between ACIN (successor-in-interest to CSTL, LLC), lessor, and ICG
Hazard, LLC (assigned from Leslie Resources, Inc.), lessee, of
County Line and Rowdy Gap Mines, amended by:
|
|
(C)
|
|
(a) Assignment of Real Property Agreements, dated September 30, 2004,
assigning to ICG Hazard, LLC
|
|||||
10.19
|
|
Fee
Lease between Kentucky River Properties, LLC, lessor, and ICG Hazard, LLC
(assigned from Shamrock Coal Company), lessee, of Rowdy Gap and Thunder
Ridge Mines, amended by:
|
|
(C)
|
|
|
(a) Agreement
of Assignment, dated July 8, 1992, assigning to Ray Coal Company,
Inc.
|
|
|||
|
(b) Assignment
and Assumption Agreement, dated June 30, 1994, assigning to Ikerd-Bandy,
Co.
|
|
|||
|
(c) Assignment
of Real Property Agreements, dated September 30, 2004, assigning to
ICG Hazard, LLC
|
|
|||
10.20
|
|
Lease
between Allegany Coal and Land Company, lessor, and Patriot Mining
Company, Inc., lessee, of Allegany County, Maryland Mine,
including:
|
|
(C)
|
|
|
(a) Amendment
1, dated and effective June 7, 1999
|
|
|||
|
(b) Amendment
2, dated and effective August 31, 1999
|
|
|||
|
(c) Amendment
3, dated and effective June 1, 2000
|
|
|||
|
(d) Amendment
4, dated and effective June 1, 2001
|
|
|||
|
(e) Default
Letter, dated and effective May 6, 2002
|
|
|||
|
(f) Letter
Agreement, dated and effective May 8, 2002
|
|
|||
10.21
|
|
Lease
between The Crab Orchard Coal and Land Company, lessor, and Wolf Run
Mining Company (f/k/a Anker West Virginia Mining Company), ICG Beckley,
LLC (successor-in-interest to Winding Gulf Coals, Inc.), lessee, of
Beckley Mine, including:
|
|
(C)
|
|
|
(a) Modification
and Amendment, dated and effective December 28, 1970
|
|
|||
|
(b) Second
Modification and Amendment, dated and effective August 22,
1974
|
|
|||
|
(c) Agreement
and Partial Surrender and Release, dated and effective October 13,
1980
|
|
Exhibit No.
|
|
Description
|
|
Note
|
|
|
(d) Amendment,
dated and effective January 1, 1983
|
|
|||
|
(e) Amendment,
dated and effective January 1, 1986
|
|
|||
|
(f) Amendment,
dated and effective January 1, 1991
|
|
|||
|
(g) Agreement
of Consent, dated and effective October 27, 1994
|
|
|||
|
(h) Acceptance
by Pine Valley Coal Company, Inc., dated and effective October 31,
1994
|
|
|||
|
(i) Instrument
of Assignment, dated October 28, 1994, effective October 31,
1994
|
|
|||
|
(j) Amendment,
dated and effective October 31, 1994
|
|
|||
10.22
|
|
Lease
between Beaver Coal Corporation, lessor, and Wolf Run Mining Company
(f/k/a Anker West Virginia Mining Company), ICG Beckley, LLC
(successor-in-interest to New River Company), lessee, of Beckley Mine,
including:
|
|
(C)
|
|
|
(a) Amendment,
dated and effective August 1, 1975
|
|
|||
|
(b) Amendment,
dated and effective August 1, 1986
|
|
|||
|
(c) Amendment,
dated and effective August 1, 1991
|
|
|||
|
(d) Acceptance
by Pine Valley Coal Company, Inc., dated and effective October 31,
1994
|
|
|||
|
(e) Agreement
of Consent, dated and effective October 28, 1994
|
|
|||
|
(f) Instrument
of Assignment, dated October 28, 1994 and effective October 31,
1994
|
|
|||
|
(g) Option
to Lease, dated April 1, 1995
|
|
|||
10.23
|
|
Lease
between Douglas Coal Company, lessor, and Vindex Energy Corp. (assigned
from Patriot Mining Company, Inc.), lessee, of Island and Douglas Mine,
including:
|
|
(C)
|
|
|
(a) Option
to Lease, dated May 27, 1994
|
|
|||
|
(b) Guarantee,
dated and effective May 1994
|
|
|||
|
(c) Memorandum
of Lease, dated and effective September 21, 1995
|
|
|||
|
(d) Assignment,
dated June 17, 2006
|
|
(S)
|
||
10.25
|
|
Sublease
between Reserve Coal Properties, sublessors, and Patriot Mining Company,
sublessee, of Sycamore No. 2 Mine
|
|
(C)
|
|
10.27
|
|
Contract
for Sale and Purchase of Coal dated July 1, 1980, between City of
Springfield, Illinois and ICG Illinois, LLC (assigned from Turis Coal
Company), amended by:
|
|
(B)
|
|
|
(a) Amendment
dated March 4, 1986, effective January 1, 1986
|
|
|||
|
(b) Second
Amendment dated April 22, 1986, effective January 1, 1986
|
||||
|
(c) Modification
dated and effective June 8, 1987
|
||||
|
(d) Modification
dated and effective November 4, 1988
|
||||
|
(e) Amendment
dated and effective January 1, 1989
|
||||
|
(f) Amendment
dated March 20, 1992, effective January 1, 1992
|
||||
|
(g) Amendment
dated March 21, 1995, effective January 1, 1995
|
|
|||
|
(h) Amendment
dated May 10, 1996, effective May 1, 1996
|
|
|||
|
(i) Amendment
dated August 20, 1998, effective January 1, 1998
|
|
|||
|
(j) Amendment
dated May 30, 2001, effective January 1, 2001
|
|
|||
|
(k) Letter
dated October 8, 2004 assigning to ICG Illinois, LLC
|
|
|||
Exhibit No.
|
|
Description
|
|
Note
|
|
10.28‡
|
|
Coal
Supply Agreement, dated as of April 1, 1992, between Hunter Ridge
Coal Company (f/k/a Anker Energy Corporation) and Logan Generating Company
(formerly Keystone Energy Service Company, L.P.), amended
by:
|
|
(G)
|
|
|
(a) First
Amendment, effective as of September 1, 1995
|
|
|||
|
(b) Second
Amendment, effective as of March 15, 2002
|
|
|||
|
(c) Third
Amendment, effective as of October 1, 2004
|
|
|||
|
(d) Coal
Price Adjustment Agreement, effective as of October 1,
2004
|
|
|||
10.29‡
|
|
Coal
Sales Agreement, dated as of February 17, 2006, between Wolf Run
Mining Company (f/k/a Anker West Virginia Mining Company, Inc.) and
Allegheny Energy Supply Company, LLC and Monongahela Power
Company
|
|
(G)
|
|
10.30‡
|
Coal
Lease Agreement Between Tygart Resources, Inc. and Pittsburgh Ligionier,
Inc., Lessors and Rocking Chair Energy Company, LLC, Lessees, including
(a) Assignment and Consent Agreement dated March 28, 2007 by and
between Tygart Resources, Inc. and Pittsburgh Ligionier, Inc., Rocking
Chair Energy Company, LLC, and Wolf Run Mining Company (b) Amendment
No. 1 to Lease Agreement made effective as of April 1, 2007 by and between
Tygart Resources, Inc. and Pittsburgh Ligionier, Inc., Lessors and Rocking
Chair Energy Company, LLC and Wolf Run Mining Company (c) Corporate
Guaranty of International Coal Group, Inc. dated as of April 1,
2007
|
(I)
|
|||
10.31‡
|
Lease
and Sublease Agreement between Penn Virginia Operating Co., LLC, lessor,
and ICG Knott County, LLC (assigned from Greymont Mining Corp.), lessee,
as amended by First Amendment to Lease and Sublease Agreement, dated
November 11, 2005 and letter agreement dated February 12,
2007
|
(L)
|
|||
10.32‡
|
|
Coal
Facility Lease and Operating Agreement, dated July 7, 2005, between
Loadout LLC, lessor, and ICG Knott County, LLC (assigned from Elk Ridge,
Inc.), lessee, as amended by First Amendment to Coal Facility Lease and
Operating Agreement, dated November 11, 2005
|
|
(L)
|
|
10.33‡
|
Amended
and Restated Coal Lease dated as of May 27, 2008 by and between Dulcet
Acquisition LLC, as lessor, and Powdul Acquisition LLC, as
lessee
|
(M)
|
|||
10.34
|
|
Second
Amended and Restated Credit Agreement, dated June 23, 2006, by and among
ICG, LLC, as borrower, the guarantors party thereto, the lenders party
thereto, J.P. Morgan Securities Inc. and UBS Securities LLC, as joint lead
arrangers and joint bookrunners, JPMorgan Chase Bank, N.A. and CIT Capital
Securities LLC, as co-syndication agents, Bank of America, N.A. and
Wachovia Bank, N.A. as co-documentation agents, JPMorgan Chase Bank, N.A.
and Bank of America, N.A. as issuing banks, UBS Loan Finance LLC, as
swingline lender, and UBS AG, Stamford Branch, as an issuing bank,
administrative agent and collateral agent
|
|
(H)
|
|
Exhibit No.
|
|
Description
|
|
Note
|
||
10.35
|
|
Security
Agreement dated as of September 30, 2004 among ICG, LLC and the guarantors
party thereto and UBS AG, Stamford Branch, as Collateral
Agent
|
|
(A)
|
||
10.36
|
|
Amendment
No. 1 to the Second Amended and Restated Credit Agreement, dated as of
January 31, 2007, among ICG, LLC, as borrower, International Coal Group,
Inc. and certain of its subsidiaries as guarantors, the lenders party
thereto, J.P. Morgan Chase Securities Inc. and UBS Securities LLC, as
joint lead arrangers and joint bookrunners, JPMorgan Chase Bank, N.A. and
CIT Capital USA Inc., as co-syndication agents, Bank of America, N.A. and
Wachovia Bank, N.A., as co-documentation agents, JPMorgan Chase Bank and
Bank of America, N.A., as issuing banks, UBS Loan Finance LLC, as
swingline lender, and UBS AG, Stamford Branch, as issuing bank, as
administrative agent and as collateral agent for the
lenders
|
|
(I)
|
||
10.37
|
|
Amendment
No. 3 to the Second Amended and Restated Credit Agreement, dated as of
February 20, 2009, among ICG, LLC, as borrower, International Coal Group,
Inc. and certain of its subsidiaries as guarantors, the lenders party
thereto, J.P. Morgan Chase Securities Inc. and UBS Securities LLC, as
joint lead arrangers and joint bookrunners, JPMorgan Chase Bank, N.A. and
CIT Capital USA Inc., as co-syndication agents, Bank of America, N.A. and
Wachovia Bank, N.A., as co-documentation agents, JPMorgan Chase Bank and
Bank of America, N.A., as issuing banks, UBS Loan Finance LLC, as
swingline lender, and UBS AG, Stamford Branch, as issuing bank, as
administrative agent and as collateral agent for the
lenders
|
|
(N)
|
||
10.38
|
Second
Amendment and Limited Waiver to the Second Amended and Restated Credit
Agreement, dated as of July 31, 2007, among ICG, LLC, as borrower,
International Coal Group, Inc. and certain of its subsidiaries as
guarantors, the lenders party thereto, J.P. Morgan Chase Securities Inc.
and UBS Securities LLC, as joint lead arrangers and joint bookrunners,
JPMorgan Chase Bank, N.A. and CIT Capital USA Inc., as co-syndication
agents, Bank of America, N.A. and Wachovia Bank, N.A., as co-documentation
agents, JPMorgan Chase Bank and Bank of America, N.A. as issuing banks,
UBS Loan Finance LLC, as swingline lender, and UBS AG, Stamford Branch, as
issuing bank, as administrative agent and as collateral agent for the
lenders
|
(J)
|
||||
10.39
|
Amendment
No. 4 to the Second Amended and Restated Credit Agreement, dated as of
September 28, 2009, among ICG, LLC, as borrower, International Coal Group,
Inc. and certain of its subsidiaries as guarantors, the lenders party
thereto, J.P. Morgan Chase Securities Inc. and UBS Securities LLC, as
joint lead arrangers and joint bookrunners, JPMorgan Chase Bank, N.A. and
CIT Capital USA Inc., as co-syndication agents, Bank of America, N.A. and
Wachovia Bank, N.A., as co-documentation agents, JPMorgan Chase Bank and
Bank of America, N.A., as issuing banks, UBS Loan Finance LLC, as
swingline lender, and UBS AG, Stamford Branch, as issuing bank, as
administrative agent and as collateral agent for the
lenders
|
(P)
|
||||
11.1
|
|
Statement
regarding Computation of Earnings Per Share
|
|
(S)
|
||
12.1
|
|
Statement
regarding Computation of Ratio of Earnings to Fixed
Charges
|
|
(S)
|
||
21.1
|
|
List
of Subsidiaries
|
|
(S)
|
||
23.1
|
|
Consent
of Deloitte & Touche, LLP
|
|
(S)
|
||
24.1
|
|
Power
of attorney, dated January 28, 2010
|
|
(S)
|
||
31.1
|
|
Certification
of the Chief Executive Officer
|
|
(S)
|
||
31.2
|
|
Certification
of the Principal Financial Officer
|
|
(S)
|
||
32.1
|
|
Certification
Pursuant to § 906 of the Sarbanes-Oxley Act of 2002
|
|
(S)
|
(A)
|
Previously
filed as an exhibit to International Coal Group, Inc.’s Registration
Statement on Form S-1 (Reg. No. 333-124393), filed on April 28,
2005 and incorporated herein by reference.
|
(B)
|
Previously
filed as an exhibit to Amendment No. 1 to International Coal Group,
Inc.’s Registration Statement on Form S-1 (Reg. No. 333-124393),
filed on June 15, 2005 and incorporated herein by
reference.
|
(C)
|
Previously
filed as an exhibit to Amendment No. 2 to International Coal Group,
Inc.’s Registration Statement on Form S-1 (Reg. No. 333-124393),
filed on June 30, 2005 and incorporated herein by
reference.
|
(D)
|
Previously
filed as an exhibit to Amendment No. 3 to International Coal Group,
Inc.’s Registration Statement on Form S-1 (Reg. No. 333-124393),
filed on September 28, 2005 and incorporated herein by
reference.
|
(E)
|
Previously
filed as an exhibit to Amendment No. 4 to International Coal Group,
Inc.’s Registration Statement on Form S-1 (Reg. No. 333-124393),
filed on October 24, 2005 and incorporated herein by
reference.
|
(F)
|
Previously
filed as an exhibit to Amendment No. 5 to International Coal Group,
Inc.’s Registration Statement on Form S-1 (Reg. No. 333-124393),
filed on November 9, 2005 and incorporated herein by reference. As
further amended in Exhibit 99.1 to International Coal Group, Inc.’s
Current Report on Form 8-K filed on November 28, 2007.
|
(G)
|
Previously
filed as an exhibit to Amendment No. 6 to International Coal Group,
Inc.’s Registration Statement on Form S-1 (Reg. No. 333-124393),
filed on November 14, 2005 and incorporated herein by
reference.
|
(H)
|
Previously
filed as an exhibit to International Coal Group, Inc.’s Current Report on
Form 8-K, filed on June 26, 2006 and incorporated herein by
reference.
|
(I)
|
Previously
filed as an exhibit to International Coal Group, Inc.’s Annual Report on
Form 10-K for the year ended December 31, 2006, filed on
March 1, 2007, and incorporated herein by reference.
|
(J)
|
Previously
filed as an exhibit to International Coal Group, Inc.’s Current Report on
Form 8-K, filed on July 31, 2007, and incorporated herein by
reference.
|
(K)
|
Previously
filed as an exhibit to International Coal Group, Inc.’s Quarterly Report
on Form 10-Q for the quarter ended March 31, 2007, filed on
May 8, 2007, and incorporated herein by reference.
|
(L)
|
Previously
filed as an exhibit to International Coal Group, Inc.’s Annual Report on
Form 10-K for the year ended December 31, 2007, filed on February 29, 2008
and incorporated herein by reference.
|
(M)
|
Previously
filed as an exhibit to International Coal Group Inc.’s Quarterly Report on
Form 10-Q for the quarter ended June 30, 2008, filed on August 8, 2008,
and incorporated herein by reference.
|
(N)
|
Previously
filed as an exhibit to International Coal Group Inc.’s Current Report on
Form 8-K, filed on February 23, 2009, and incorporated herein by
reference.
|
(O)
|
Previously
filed as an exhibit to International Coal Group, Inc.’s Annual Report on
Form 10-K for the year ended December 31, 2008, filed on February 27, 2009
and incorporated herein by reference.
|
(P)
|
Previously
filed as an exhibit to International Coal Group Inc.’s Current Report on
Form 8-K, filed on September 29, 2009, and incorporated herein by
reference.
|
(Q)
|
Previously
filed as Annex A to International Coal Group Inc.’s Definitive Proxy
Statement on Schedule 14A (File No. 1-32679) filed on April 15,
2009.
|
(R)
|
Previously
filed as Exhibit 1.2 to Amendment No. 1 to Schedule 13D of Fairfax
Financial Holdings Limited, filed on May 29, 2008.
|
(S)
|
Filed
herewith.
|
‡
|
Confidential
treatment requested as to certain portions that have been omitted and
filed separately with the Securities and Exchange
Commission.
|