|By Marketwired .||
|August 14, 2014 05:48 PM EDT||
KNOXVILLE, TENNESSEE -- (Marketwired) -- 08/14/14 --
-- The Company amended its metallurgical coal supply agreement with Globe Metallurgical to reflect increases in price and tonnage while extending the term through June 2017. -- In July 2014, we partnered with Mercuria Energy Trading ("Mercuria"), one of the largest and most experienced commodity trading companies in the world, to market our thermal and metallurgical coal. -- Increased metallurgical coal production at South Fork to 96,200 tons in the quarter ended June 30, 2014 while reducing cash cost per ton to $93.94. -- Increased thermal coal production at Raven Crest to 156,096 tons in the quarter ended June 30, 2014 while reducing cash cost per ton to $57.04. -- At June 30, 2014, the Company has reduced its inventory levels from the previous quarter by about 24% to approximately 123,000 tons which has a market value of about $8.0 million. -- The Company continues to evaluate possible sales of non-strategic, surplus and non-core assets in addition to other transactions in efforts to strengthen our balance sheet and improve liquidity in the near term.
Xinergy Ltd. (the "Company") (TSX:XRG), a Central Appalachian coal producer, today announced that the Company had a net loss of $(9.1) million, or $(0.14) per diluted share for the second quarter ended June 30, 2014. This is compared with a net loss of $(9.4) million, or $(0.17) per diluted share for the second quarter of 2013. The Company had a net loss of $(20.9) million, or $(0.35) per diluted share for the six months ended June 30, 2014. This is compared with a net loss of $(11.3) million, or $(0.21) per diluted share for the six months ended June 30, 2013. Second quarter 2014 adjusted EBITDA was $(0.4) million compared with $(2.1) million for the second quarter 2013. For the six months ended June 30, 2014 adjusted EBITDA was $(3.9) million compared with $(5.7) million for the six months ended June 30, 2013. The Company's Condensed Consolidated Interim Financial Statements for the three and six months ended June 30, 2014, together with its Management's Discussion and Analysis ("MD&A") for the corresponding period, have been posted on SEDAR at www.sedar.com and on the Company's website at www.xinergycorp.com.
"We have now positioned Xinergy as a producer of premium mid-vol metallurgical coal and high quality thermal coal, while we continue to focus daily to be one of the lowest cost operators in Central Appalachia," said Bernie Mason, Xinergy's President and CEO.
"We are also very excited about our recent announcement that Mercuria will serve as our exclusive coal sales agent. Mercuria is a global leader in energy and commodity trading and we expect them to assist us through this stagnant market and also help us to the next level," continued Mason.
The following tables present selected balance sheet, statement of operations and sales and operating statistics as of June 30, 2014 and December 31, 2013, for the three and six months ended June 30, 2014 and the three months ended March 31, 2013.
As of As of As of As of June 30 March 31 December 31 June 30 ($'000) 2014 2014 2013 2013 ---------------------------------------------------------------------------- Balance Sheet Cash and cash equivalents $ 2,060 $ 10,436 $ 10,485 $ 17,058 Total current assets $ 16,414 $ 23,972 $ 20,941 $ 42,296 Total assets $ 130,525 $ 140,362 $ 139,372 $ 160,271 Total current liabilities $ 16,173 $ 16,714 $ 9,966 $ 12,752 Total long-term liabilities $ 229,434 $ 229,682 $ 228,737 $ 220,093 Shareholders' equity $ (115,082) $ (106,034) $ (99,331) $ (72,574) Three Three Three months months Six months months ended ended ended ended ($'000, except per share) June 30, March 31, June 30, June 30, 2014 2014 2014 2013 ---------------------------------------------------------------------------- Statement of Operations Coal revenues $ 20,117 $ 11,710 $ 31,827 $ 4,739 Cost of coal sales $ 18,939 $ 14,063 $ 33,002 $ 5,014 Gross margin $ 1,178 $ (2,353) $ (1,175) $ (275) (Loss) income before taxes $ (9,106) $ (11,820) $ (20,926) $ (9,379) Net (loss) income $ (9,106) $ (11,820) $ (20,926) $ (9,379) Basic and diluted net income(loss) per share $ (0.14) $ (0.22) $ (0.35) $ (0.17) Three Three Three months months Six months months ended ended ended ended June 30, March 31, June 30, June 30, 2014 2014 2014 2013 Sales & Operating Statistics ---------------------------------------------------------------------------- Tons sold 290,318 165,074 455,392 49,270 Tons produced 252,296 177,377 429,673 53,867 Sales price/ton $ 69.29 $ 70.94 $ 69.89 $ 96.19 COGS/ton sold $ 65.23 $ 85.19 $ 72.47 $ 101.77 Gross margin/ton sold $ 4.06 $ (14.25) $ (2.58) $ (5.58) Cash costs/ton produced $ 71.85 $ 81.48 $ 75.83 $ 112.03
We spent approximately $1.2 million on capital expenditures for the three months ended June 30, 2014. The Company estimates an additional $0.7 million to $2.7 million in capital expenditures will be incurred during the remainder of 2014, for an estimate of $4.0 to $6.0 million for the full year 2014.
Liquidity and Capital Resources
At June 30, 2014, as outlined in the following table, we had total cash and cash equivalents of $2.1 million and $8.8 million of restricted cash, compared with $10.5 million and $10.0 million at December 31, 2013, respectively.
December 31, June 30, 2014 2013 ------------------------------------------------------------ --------------- Cash, operating $ 2,060 $ 10,485 Cash, restricted: Kentucky sale proceeds $ 2,308 $ 518 Kentucky sale proceeds held in escrow $ - $ 3,001 Deposits $ 1,440 $ 1,440 Reclamation bond collateral $ 5,009 $ 5,009 --------------- --------------- Total Cash, Restricted $ 8,757 $ 9,968 --------------- ---------------
In accordance with the Notes, the restricted cash received from the Kentucky sales proceeds was used to make capital expenditures. At June 30, 2014 we have $2.3 million compared to $0.5 million on December 31, 2013. In June 2014, the Company received $2.5 million of the Kentucky sale collateral proceeds that were held in escrow.
The Company remains highly leveraged. Our Notes have an outstanding balance of $195.0 million and provide for semi-annual interest payments of $9.0 million in mid-November and mid-May. Our senior notes have an outstanding balance of $20.0 million and provide for quarterly interest payments of $0.5 million.
In the second quarter of 2014, the Company experienced positive gross margins from both active mining operations by achieving lower cash costs and higher revenues. We continued to reduce inventories but the shipping delays and rail service disruptions experienced in the first quarter of 2014 continued into the early second quarter of 2014. This continued impact of delays resulted in reduced revenues of approximately $3.8 million and deferred the sale and shipment of approximately 38,000 tons. At June 30, 2014, we have approximately 123,000 tons of inventory on hand with a current market value of about $8.0 million.
On March 31, 2014, we received $4.95 million from the sale of common shares pursuant to a private placement. We continue to negotiate with financial institutions and advisors in efforts to arrange financing to provide adequate liquidity that when combined with existing cash balances, will be sufficient to make the $9.0 million interest payment on our Notes in November 2014. We also continue to explore strategic alternatives that may include an additional sale of equity securities, the sale of debt securities, the sale of surplus or obsolete mining equipment, owned reserves and other assets and/or the restructuring of our debt.
Conference Call, Webcast and Replay
The Company will hold its quarterly conference call to discuss second quarter 2014 operating results on Friday August 15, 2014 at 10:00 a.m. EDT. The conference call will be open to the public toll free at (877) 317-6789. International callers should use (412) 317-6789, and Canadian callers should use (866) 605-3852. The conference call can also be accessed via webcast on the Company's website with a replay available shortly after the event.
About Xinergy Ltd.
Headquartered in Knoxville, Tennessee, Xinergy Ltd., through its wholly owned subsidiary Xinergy Corp. and its subsidiaries, is engaged in coal mining in West Virginia and Virginia. Xinergy sells high quality metallurgical and thermal coal to electric utilities, steelmakers, energy trading firms and industrial companies. For more information, please visit www.xinergycorp.com.
This news release contains forward-looking information is based on the Company's expectations and beliefs concerning future events and involves risks and uncertainties that are outside of our control and may cause actual results to materially differ from current expectations. Some of these key assumptions include, among other things: no material disruption in production, or no material variation in anticipated thermal and metallurgical coal sales volumes; no material decline in markets and pricing of steam or metallurgical coal other than anticipated variations; continued availability of and no material disruption in rail service; no production, construction or shipping disruptions due to adverse weather conditions other than normal, seasonal patterns; no material delays in the current timing for completion of ongoing projects; no material delays in the receipt of anticipated mining permits from governmental agencies; financing will be available on terms favorable and reasonable to the Company; no material variation in historical coal purchasing practices of customers; coal sales contracts will be entered into with new customers; parties execute and deliver contracts currently under negotiation; and no material variations in the current regulatory environment. The reader is cautioned that such assumptions, although considered reasonable by us at the time of preparation, may prove to be incorrect.
Actual results achieved during the forecast period may vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors. Additional factors include, but are not limited to the factors on page 6: changes in general economic, market and business conditions; uncertainties associated with estimating the quantity and quality of coal reserves and resources; commodity prices; currency exchange rates; the availability of credit facilities for capital expenditure requirements; debt service requirements; dependence on a single rail system; changes to federal and state legislation; liabilities inherent in coal mine development and production; competition for, among other things, capital, acquisitions of reserves, undeveloped lands and skilled personnel; geological, mining and processing technical problems; ability to obtain required mine licenses, mine permits and regulatory approvals required to proceed with mining and coal processing operations; ability to comply with current and future environmental and other laws; actions by governmental or regulatory authorities including increasing taxes and changes in other regulations; the occurrence of unexpected events involved in coal mine development and production; and other factors, many of which are beyond our control. Many of these risk factors and uncertainties are discussed in our Annual Information Form ("AIF") in a section entitled "Risk Factors" and other documents filed with the Canadian securities regulatory authorities available on SEDAR at www.sedar.com. Please refer to these documents for further details about the risks faced by the Company.
This news release reports certain financial measures that are not recognized by Canadian generally accepted accounting principles "GAAP" to evaluate the performance of the Company. Since certain non-GAAP financial measures may not have a standardized meaning and may not be comparable to similar measures presented by other companies, Canadian securities regulations require that non-GAAP financial measures are clearly defined, quantified and reconciled with their nearest GAAP measure. Investors and other readers of this news release are cautioned that these non-GAAP financial measures should not be construed as alternatives to other measures of financial performance calculated in accordance with GAAP. Please refer to page (2), page (11), and page (24) to page (25) of the Company's MD&A which is available on SEDAR at www.sedar.com for further details with respect to the use of non-GAAP measures and for the applicable reconciliations.
G. L. "Bernie" Mason
Chief Executive Officer
Michael R. Castle
Chief Financial Officer
Robert L. Gaylor
Senior Vice President
Multiple data types are pouring into IoT deployments. Data is coming in small packages as well as enormous files and data streams of many sizes. Widespread use of mobile devices adds to the total. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists will look at the tools and environments that are being put to use in IoT deployments, as well as the team skills a modern enterprise IT shop needs to keep things running, get a handle on all this data, and deli...
Apr. 28, 2017 09:15 PM EDT Reads: 2,600
Automation is enabling enterprises to design, deploy, and manage more complex, hybrid cloud environments. Yet the people who manage these environments must be trained in and understanding these environments better than ever before. A new era of analytics and cognitive computing is adding intelligence, but also more complexity, to these cloud environments. How smart is your cloud? How smart should it be? In this power panel at 20th Cloud Expo, moderated by Conference Chair Roger Strukhoff, pane...
Apr. 28, 2017 08:45 PM EDT Reads: 2,395
The Internet of Things is clearly many things: data collection and analytics, wearables, Smart Grids and Smart Cities, the Industrial Internet, and more. Cool platforms like Arduino, Raspberry Pi, Intel's Galileo and Edison, and a diverse world of sensors are making the IoT a great toy box for developers in all these areas. In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists discussed what things are the most important, which will have the most profound e...
Apr. 28, 2017 08:15 PM EDT Reads: 2,379
The age of Digital Disruption is evolving into the next era – Digital Cohesion, an age in which applications securely self-assemble and deliver predictive services that continuously adapt to user behavior. Information from devices, sensors and applications around us will drive services seamlessly across mobile and fixed devices/infrastructure. This evolution is happening now in software defined services and secure networking. Four key drivers – Performance, Economics, Interoperability and Trust ...
Apr. 28, 2017 07:45 PM EDT Reads: 890
@ThingsExpo has been named the Most Influential ‘Smart Cities - IIoT' Account and @BigDataExpo has been named fourteenth by Right Relevance (RR), which provides curated information and intelligence on approximately 50,000 topics. In addition, Right Relevance provides an Insights offering that combines the above Topics and Influencers information with real time conversations to provide actionable intelligence with visualizations to enable decision making. The Insights service is applicable to eve...
Apr. 28, 2017 07:45 PM EDT Reads: 2,925
The 20th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held June 6-8, 2017, at the Javits Center in New York City, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Containers, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal ...
Apr. 28, 2017 07:30 PM EDT Reads: 1,498
SYS-CON Events announced today that Grape Up will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct. 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Grape Up is a software company specializing in cloud native application development and professional services related to Cloud Foundry PaaS. With five expert teams that operate in various sectors of the market across the U.S. and Europe, Grape Up works with a variety of customers from emergi...
Apr. 28, 2017 07:15 PM EDT Reads: 2,315
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm.
Apr. 28, 2017 07:00 PM EDT Reads: 1,160
In his keynote at 19th Cloud Expo, Sheng Liang, co-founder and CEO of Rancher Labs, discussed the technological advances and new business opportunities created by the rapid adoption of containers. With the success of Amazon Web Services (AWS) and various open source technologies used to build private clouds, cloud computing has become an essential component of IT strategy. However, users continue to face challenges in implementing clouds, as older technologies evolve and newer ones like Docker c...
Apr. 28, 2017 06:45 PM EDT Reads: 1,027
With billions of sensors deployed worldwide, the amount of machine-generated data will soon exceed what our networks can handle. But consumers and businesses will expect seamless experiences and real-time responsiveness. What does this mean for IoT devices and the infrastructure that supports them? More of the data will need to be handled at - or closer to - the devices themselves.
Apr. 28, 2017 06:15 PM EDT Reads: 996
All organizations that did not originate this moment have a pre-existing culture as well as legacy technology and processes that can be more or less amenable to DevOps implementation. That organizational culture is influenced by the personalities and management styles of Executive Management, the wider culture in which the organization is situated, and the personalities of key team members at all levels of the organization. This culture and entrenched interests usually throw a wrench in the work...
Apr. 28, 2017 05:45 PM EDT Reads: 857
Cloud promises the agility required by today’s digital businesses. As organizations adopt cloud based infrastructures and services, their IT resources become increasingly dynamic and hybrid in nature. Managing these require modern IT operations and tools. In his session at 20th Cloud Expo, Raj Sundaram, Senior Principal Product Manager at CA Technologies, will discuss how to modernize your IT operations in order to proactively manage your hybrid cloud and IT environments. He will be sharing be...
Apr. 28, 2017 05:15 PM EDT Reads: 829
As DevOps methodologies expand their reach across the enterprise, organizations face the daunting challenge of adapting related cloud strategies to ensure optimal alignment, from managing complexity to ensuring proper governance. How can culture, automation, legacy apps and even budget be reexamined to enable this ongoing shift within the modern software factory?
Apr. 28, 2017 05:00 PM EDT Reads: 296
Building a cross-cloud operational model can be a daunting task. Per-cloud silos are not the answer, but neither is a fully generic abstraction plane that strips out capabilities unique to a particular provider. In his session at 20th Cloud Expo, Chris Wolf, VP & Chief Technology Officer, Global Field & Industry at VMware, will discuss how successful organizations approach cloud operations and management, with insights into where operations should be centralized and when it’s best to decentraliz...
Apr. 28, 2017 04:30 PM EDT Reads: 877
SYS-CON Events announced today that T-Mobile will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. As America's Un-carrier, T-Mobile US, Inc., is redefining the way consumers and businesses buy wireless services through leading product and service innovation. The Company's advanced nationwide 4G LTE network delivers outstanding wireless experiences to 67.4 million customers who are unwilling to compromise on ...
Apr. 28, 2017 04:15 PM EDT Reads: 1,388