James River Coal balance sheet shows June loss

Market: Coal
04/08/14

Richmond-based James River Coal's sales revenue exceeded related costs in June but financing related to its bankruptcy court reorganization caused the producer to lose $60.8mn.

The Central Appalachian producer's coal sales revenue was $46.7mn in June, a filing to the federal bankruptcy court shows. Additional funds from freight and handling pushed total revenue to $49.7mn.

The cost of coal sold was $45.4mn in June. But any potential profit was eaten up by $55mn in reorganization expenses as well as $9.5mn in freight and handling costs and depreciation, depletion and amortization costs.

James River said write-off's related to debt and financing costs and professional fees accounted for a significant expansion of its loss.

About $595.8mn of the producer's assets in June were property, plant and equipment holdings. It is also holding on to $84.2mn in cash and cash equivalents. James River said it had $28mn worth of coal in its inventory as well as materials and supplies valued at $11.5mn.

James River also claimed total liabilities of $943.4mn, offset slightly by a shareholders' deficit of $73.2mn.

The coal producer entered chapter 11 bankruptcy protection in April but has kept its operations running as it seeks to reorganize or sell its assets. James River has rescheduled an auction of its assets several times. It is currently set for 11 August.

In July, the producer paid back $20mn of the outstanding principal on its $110mn debtor-in-possession financing facility. It had borrowed the total amount by 13 June. The money has been used for operational and working capital, to pay the fees, costs and expenses related to the bankruptcy case and to pay in full "certain pre-petition debt and cash collateral letters of credit."

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