Stock Alert for International Coal Group Inc. (ICO)
  • Stock Alert for International Coal Group Inc. (ICO)
  • Stock Alert for International Coal Group Inc. (ICO)
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    Small Cap Stock on Watch: James River Coal Reports Q4 and Full Year 2011 Results

    Small Cap Stock on Watch: James River Coal Reports Q4 and Full Year 2011 Results

    Shares of James River Coal Co. (NASDAQ: JRCC), a coal producer in Central Appalachia and the Illinois Basin, jumped 8.38% to close Thursday’s session at $6.21 after the company posted its latest financial results. The stock saw volume of over 9.83 million shares, versus the 10-day average of 2.53 million.

    Over the last 52 weeks, the stock has ranged from a low of $5.41 to a high of $25.51.  It is currently trading below its 50-day moving average of $6.66 and below its 200-day moving average of $8.08.

    James River Coal Co. reported a net loss of $28.5 million, or $0.82 a share, for the fourth quarter of 2011, versus a net income of $25.9 million, or $0.93 a share, for the fourth quarter of 2010. Total revenue, which include freight and handling, came in at $357.2 million, which compares to analyst forecasts for 327.1 million. Revenue from coal sales doubled to $321.8 million.

    For the full year, the company posted a net loss of $39.1 million, or $1.19 a share, compared to a net income of $78.2 million, or $2.82 a share, in the previous year. Total revenue for the year was over $1.18 billion, an increase of almost 68% from last year.

    The Company said the results include an income tax expense adjustment related to a valuation allowance placed on its deferred tax assets of $26.8 million, or $0.82 a share, for the year-end period and $0.77 a share for the fourth quarter.  In the previous year, James River Coal Co. recorded an income tax benefit related to the reversal of the deferred income tax valuation allowance of $22.1 million, or $0.80 a share, for the year-end period, and $0.79 a share for the fourth quarter.

    Peter T. Socha, chairman and CEO of James River Coal Co., made the following statements: “2011 was a year of transformation for James River Coal Company.  We continued the process to grow and diversify our company.  We expanded our presence in both the metallurgical coal segment and the international coal markets. In the operations area, we achieved industry-leading performance in both safety and regulatory compliance.  In the financial area, we strengthened our balance sheet by refinancing all of our funded debt and substantially improving our liquidity position.  While we are cautious and realistic about the current soft market conditions, we are also optimistic that James River will be well positioned for improving markets in the future.”

    Based in Richmond, Virginia, James River Coal Co. sells metallurgical, bituminous steam and industrial-grade coal to electric utility companies and industrial customers both domestically and internationally.  The company’s operations are managed through eight operating subsidiaries located throughout eastern Kentucky, southern West Virginia and southern Indiana.

    JRCC shares have dropped 4.0% in the last five days; 0.5% in the last month; and 69.4% year-to-date.

     

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