American Resources Corp 8-K, filed Jun 2, 2020
American Resources Corp (AREC)
8-K
2020-06-02
For: 2020-06-01
View Original
Added on
April 06, 2026
About this 8-K
American Resources Corp filed this 8-K on June 2, 2020, reporting on events of June 1, 2020.
Items reported
- Item 8.01: Other events
- Item 9.01: Financial statements and exhibits
UNITED STATES
SECURITIES
AND EXCHANGE COMMISSION
WASHINGTON,
D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant
to Section 13 or 15(d) of the Securities Exchange Act of
1934
Date of
Report (Date of Earliest event Reported): June 1, 2020
AMERICAN RESOURCES CORPORATION
(Exact name of registrant as specified in its charter)
|
Florida
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000-55456
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46-3914127
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(State
or other jurisdiction of incorporation)
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(Commission
File Number)
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(I.R.S.
Employer Identification No.)
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12115
Visionary Way, Suite 174, Fishers Indiana, 46038
(Address
of principal executive offices)
(317)
855-9926
(Registrant’s
telephone number, including area code)
________________________________________________
(Former
name or former address, if changed since last report)
Check
the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant
under any of the following provisions (See: General Instruction
A.2. below):
☐
Written
communications pursuant to Rule 425 under the Securities Act (17
CFR 230.425)
☐
Soliciting material
pursuant to Rule 14a-12 under the Exchange Act
(17CFR240.14a-12)
☐
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act
(17CFR240.14d-2(b))
☐
Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act
(17CFR240.13e-4(c))
Item 8.01 Other Events
On June
1, 2020, American Resources Corporation (or the
“Company”) issued a press release to announce the
reporting of the Company’s financial results for the full
year 2019, fourth quarter of 2019, and to provide a business
outlook.
The information presented in Item 8.01 of this Current Report on
Form 8-K and Exhibit 99.1 shall not be deemed to be
“filed” for purposes of Section 18 of the
Securities Exchange Act of 1934, as amended (the “Exchange
Act”), or otherwise subject to the liabilities of that
section, unless the Company specifically states that the
information is to be considered “filed” under the
Exchange Act or specifically incorporates it by reference into a
filing under the Securities Act of 1933, as amended, or the
Exchange Act.
A copy
of the press release is attached as Exhibit 99.1 hereto and is
incorporated herein by reference.
Item 9.01.1.
Financial Statements and
Exhibits.
(d)
Exhibits
The
following exhibits are attached hereto and filed
herewith.
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Exhibit No.
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Description
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Press
Release Dated June 1, 2020
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2
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf
by the undersigned hereunto duly authorized.
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American Resources
Corporation
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|
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| Date: June 2, 2020 |
By:
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/s/
Mark C.
Jensen
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Mark C. Jensen |
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Chief Executive Officer |
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3
Exhibit 99.1
American Resources Corporation Reports Fourth Quarter and Full Year
2019 Financial Results and Provides Business Outlook
Company well-positioned to be a long-term supplier of raw material
to the global infrastructure market while bringing a more efficient
and modernized business model to the industry
Strategic steps taken over the course of 2019 transformed Company
into infrastructure company producing pure metallurgical carbon,
while enhancing environmental, social and governance (ESG)
profile
Company poised to execute on multiple value driving milestones over
the course of 2020
June 1, 2020 | Source: American Resources
Corporation
FISHERS, INDIANA / ACCESSWIRE / June 1, 2020
/ American Resources
Corporation (NASDAQ:AREC)
(“American Resources” or the “Company”), a
supplier of raw materials to the rapidly growing global
infrastructure marketplace with a primary focus on the extraction,
processing, transportation and distribution of metallurgical carbon
to the steel and specialty metals industries, today reported its
fourth quarter and full year ended December 31, 2019 financial
results.
Mark Jensen, Chairman and CEO of American Resources Corporation
commented, “2019 continued to be a transformational year for
American Resources. Notwithstanding some industry headwinds in the
latter half of the year, we achieved several important milestones.
When reflecting on all of our achievements, we are extremely proud
of our team for continuing to optimize our position within the
metallurgical carbon market. Our mission continues to be a
long-term and stable supplier of raw material to the global
infrastructure market while bringing a more efficient and
modernized business model to the industry. Additionally, as we
execute on this mission, so does our equally important ability to
provide stable long-term employment to a region in
need.”
1
2019 Key Highlights
●
February 2019:
Successfully up-listed to the Nasdaq Capital Market under the
ticker “AREC,” providing shareholders with the fairest
and most open marketplace as well increased visibility, recognition
and value.
●
October 2019:
Announced the closing on the acquisition of Perry County Resources
(“PCR”), the Company’s eighth acquisition in five
years. The addition of PCR to American Resources’ platform
further enhances the Company’s position in the metallurgical
carbon market by providing access to a well-known, high-quality
product.
●
Ongoing development
achievements at the Company’s McCoy Elkhorn complex to
improve American Resources’ long-term cost structure as well
as disposing of non-core assets and environmental liabilities to
improve its balance sheet.
Mark Jensen continued, “Looking forward to the
remainder of 2020 and into the coming years, we remain quite
optimistic on global infrastructure demand and believe governments
around the world will look to increase infrastructure projects as a
way to stimulate economic activity as we come out of the COVID-19
pandemic. Given the immediate uncertainties regarding global
end-markets and the competitive landscape, we are not providing any
guidance at this time. However, we are very enthusiastic about our
platform’s position and our ability to be one of the largest
growth pipelines at a time when so much supply has come
offline.”
“Lastly,
we have made significant steps to enhance our environmental, social
and governance (ESG) profile. As previously stated, we expired our
one and only thermal coal contract during the third quarter of 2019
to become a pure metallurgical carbon producer. Furthermore, we
have advanced our environmental reclamation efforts to move over
twelve thermal coal sites we assumed though our various
acquisitions to ‘reclamation only’ status, and have
created partnerships to advance those projects past the
environmental stage to create long-term economic and employment
opportunities for local communities. We believe our ESG efforts
will further distinguish American Resources as industry
revolutionaries.”
Financial Results for Fourth Quarter and Year-End December 31,
2019
The Company reported net loss from operations of $59.9 million, or
a loss of $2.94 per share for the year ended December 31, 2019,
compared with a net loss from operations of $11.5 million, or a
loss of $3.69 per share, for 2018. The Company earned adjusted
earnings before interest, taxes, depreciation, amortization,
accretion on asset retirement obligations, non-operating expenses,
non-cash impairment and development costs (‘adjusted
EBITDA”) loss of $6.6 million for the year ended December 31,
2019, as compared with a loss of $3.35 million in
2018.
For the fourth quarter of 2019, American Resources reported a net
loss from operations of $39.6 million, or a loss of $1.66 per
share, as compared with a net loss from operations of $3.43
million, or a loss of $0.98 per share, in the prior-year period.
The Company earned adjusted EBITDA loss of $3.1 million in the
fourth quarter of 2019, as compared with adjusted EBITDA loss of
$0.774 million for the fourth quarter of 2018.
2
Full Year 2019 Summary
Full
year 2019 revenues were $24,477,707 compared to full year 2018
revenues of $31,524,825. The year-over-year decrease was mainly due
to the Company’s decision to expire its only thermal coal
contract during the third quarter and shift away from the thermal
coal market and purely focus on the global metallurgical carbon
market. In conjunction with its focus on being a pure metallurgical
carbon producer, the Company commenced its restructuring efforts of
its recently acquired Perry County Resources complex in the fourth
quarter of 2019. As such, PCR had not reached its maximum revenue
and efficiency standards under its revised operating structure.
Additionally, the Company incurred a non-cash impairment charge of
$27,688,030 in the fourth quarter of 2019 due to the write-down of
fixed assets and divestiture of certain surface and mineral acres located near
Phelps, Kentucky that closed as of May, 2020.
2019
cost of sales (includes mining, transportation, and processing
costs) were $26,086,814, compared to $24,992,312 during 2018.
General and administrative expenses for the full year 2019 were
$5,113,688, or 20.9 percent of total revenue. Depreciation was
$4,588,136, or 18.7 percent of total revenue. American Resources
incurred interest expense of $2,908,579 during 2019 compared to
$1,288,991 during the full year of 2018. Development costs during
the year were $7,236,652, compared to $3,815,235 in
2018.
The
Company did not incur any income tax expense in 2019 as it was able
to utilize its available net operating losses (“NOL”)
carried forward from prior periods of approximately
$13,746,391 as of
December 31, 2019.
Fourth Quarter 2019 Summary
Total
revenues were $6,294,026 for the fourth quarter of 2019. Cost of
sales (includes mining, transportation, royalty and processing
costs,) for the fourth quarter of 2019 were $10.8 million, or 172
percent of total revenues, compared to $8.2 million, or 100 percent
of total revenue in the same period of 2018.
General
and administrative expenses for the fourth quarter of 2019 were
$1,315,638, or 20.9 percent of total revenue, compared to
$4,000,556 during the fourth quarter of 2018. Depreciation for the
fourth quarter of 2019 was $1,551,389, or 24.7 percent of total
revenue. American Resources incurred interest expense of $1,233,926
during the fourth quarter of 2019 compared to $424,886 during the
fourth quarter of 2018. Development costs during the quarter were
$1,324,063, compared to $1,425,024 in the third quarter of
2019.
Operational Results
The Company produced and sold 73,633 short tons of coal in the
fourth quarter of 2019, compared to 25,969 short tons in the third
of 2019 and 113,618 short tons in the fourth quarter of 2018. For
the full year of 2019, the Company produced and sold 325,918 short
tons compared to 435,574 short tons during 2018.
The exhibit below summarizes some of the key sales, production and
financial metrics:
|
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December
31, 2019
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September
30, 2019
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December
31, 2018
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2019
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2018
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Sales Volume (a)
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Tons
Sold
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73,633
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25,969
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113,618
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325,918
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435,574
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Company Production (a)
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McCoy
Elkhorn
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28,351
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11,180
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48,657
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134,099
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226,863
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Perry
County Resources
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45,282
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-
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-
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45,282
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-
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Deane
Mining
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-
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14,789
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64,961
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146,537
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208,711
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Total
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73,633
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25,969
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113,618
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325,918
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435,574
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Company Financial Metrics(b)
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Revenue
per Ton
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$85.48
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$71.13
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$78.25
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$75.04
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$71.64
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Cash Cost per Ton Sold (c)
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$147.11
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$113.84
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$72.25
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$80.04
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$57.38
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Cash Margin per Ton (c)
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$(61.63)
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$(42.71)
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$6.00
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$(5.00)
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$14.26
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Development
Costs
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$1,324,063
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$1,425,024
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$1,626,402
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$7,236,652
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$3,815,235
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_________________________________
Notes:
(a)
In short tons
(b)
Excludes transportation
(c)
Cash cost per ton is based on reported cost of sales and includes
items such as production taxes, royalties, labor, fuel, and other
similar production and sales cost items, and may be adjusted for
other items that, pursuant to GAAP, are classified in the Statement
of Operations as costs other than cost of sales, but relate
directly to the cost incurred to produce coal. Our cash cost of
sales per short ton is calculated as cash cost of sales divided by
short tons sold, and our cash margin per ton is calculated by
subtracting cash cost per ton from revenue per ton. Cash cost of
sales per short ton and average cash margin per ton are non-GAAP
financial measure which are calculated in conformity with U.S. GAAP
and should be considered supplemental to, and not as a substitute
or superior to financial measures calculated in conformity with
GAAP. We believe cash cost of sales per ton and average cash margin
per ton are useful measurse of performance as it aides some
investors and analysts in comparing us against other companies.
Cash cost of sales per ton and margin per ton may not be comparable
to similarly titled measures used by other companies.
3
AMERICAN RESOURCES CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
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Years ended
December 31,
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2019
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2018
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Coal
Sales
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$24,456,831
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$31,204,181
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Processing Services
Income
|
20,876
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320,644
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|
|
|
|
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Total
Revenue
|
24,477,707
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31,524,825
|
|
|
|
|
|
Cost of Coal Sales
and Processing
|
(26,086,814)
|
(24,992,312)
|
|
Accretion
Expense
|
(1,482,349)
|
(1,366,322)
|
|
Gain on purchase
and disposal of asset, respectively
|
394,484
|
807,591
|
|
Depreciation
|
(4,588,136)
|
(2,461,557)
|
|
Amortization of
mining rights
|
(1,657,673)
|
(478,801)
|
|
General and
Administrative
|
(5,113,688)
|
(6,176,350)
|
|
Professional
Fees
|
(6,750,848)
|
(1,363,250)
|
|
Production Taxes
and Royalties
|
(4,222,175)
|
(3,175,294)
|
|
Impairment of Fixed
Assets
|
(27,688,030)
|
-
|
|
|
|
|
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Development
Costs
|
(7,236,652)
|
(3,815,235)
|
|
|
|
|
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Total Expenses from
Operations
|
(84,431,881)
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(43,021,530)
|
|
|
|
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Net Loss from
Operations
|
(59,954,174)
|
(11,496,705)
|
|
|
|
|
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Other
Income
|
2,072,861
|
466,808
|
|
(Loss)/Gain on
settlement of note payable and accounts payable
|
(22,660)
|
68,010
|
|
Amortization of
debt discount and debt issuance costs
|
(7,725,076)
|
(670,601)
|
|
Interest
Income
|
164,686
|
164,166
|
|
Warrant
modification expense
|
(2,545,360)
|
-
|
|
Interest
expense
|
(2,908,579)
|
(1,288,990)
|
|
|
|
|
|
Net
Loss
|
(70,918,302)
|
(12,757,312)
|
|
|
|
|
|
Less:
Preferred Series B dividend requirement
|
-
|
(114,850)
|
|
Less: Net
income attributable to Non Controlling Interest
|
-
|
(151,264)
|
|
|
|
|
|
Net loss
attributable to American Resources Corporation
Shareholders
|
$(70,918,302)
|
$(13,023,426)
|
|
|
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Net loss per share
- basic and diluted
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$(2.94)
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$(3.69)
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|
|
|
|
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Weighted average
shares outstanding
|
24,094,420
|
3,513,513
|
4
CONSOLIDATED BALANCE SHEETS
|
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December
31,
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2019
|
2018
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|
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ASSETS
|
|
|
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CURRENT
ASSETS
|
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Cash
|
$3,324
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$2,293,107
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Accounts
Receivable
|
2,424,905
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1,338,680
|
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Inventory
|
515,630
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163,800
|
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Prepaid
|
-
|
147,826
|
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Accounts Receivable
- Other
|
234,240
|
319,548
|
|
Total Current
Assets
|
3,178,099
|
4,262,961
|
|
|
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OTHER
ASSETS
|
|
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Cash -
restricted
|
265,487
|
411,692
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Processing and rail
facility
|
12,723,163
|
11,630,171
|
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Underground
equipment
|
8,294,188
|
8,717,229
|
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Surface
equipment
|
3,224,896
|
3,101,518
|
|
Mine
development
|
669,860
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2,913,241
|
|
Coal Refuse
Storage
|
12,171,271
|
11,993,827
|
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Less Accumulated
Depreciation
|
(11,162,622
|
(6,691,259)
|
|
Land
|
1,748,169
|
907,193
|
|
Note
Receivable
|
4,117,139
|
4,117,139
|
|
Total Other
Assets
|
32,051,551
|
37,100,751
|
|
|
|
|
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TOTAL
ASSETS
|
$35,229,650
|
$41,363,712
|
|
|
|
|
|
LIABILITIES
AND STOCKHOLDERS' DEFICIT
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES
|
|
|
|
Accounts
payable
|
11,044,479
|
8,121,162
|
|
Accounts payable -
related party
|
718,156
|
474,654
|
|
Accrued
interest
|
2,869,763
|
1,118,736
|
|
Funds held for
others
|
-
|
79,662
|
|
Due to
affiliate
|
132,639
|
142,500
|
|
Current portion of
notes payables (net of unamortized discount of $0 and
$134,296)
|
20,494,589
|
14,169,139
|
|
Convertible note
payables
|
7,419,612
|
-
|
|
Current portion of
reclamation liability
|
2,327,169
|
2,327,169
|
|
Total Current
Liabilities
|
45,006,407
|
26,433,022
|
|
|
|
|
|
OTHER
LIABILITIES
|
|
|
|
Long-term portion
of note payable (net of issuance costs $417,183 and
$428,699)
|
5,415,271
|
7,918,872
|
|
Reclamation
liability
|
17,512,613
|
16,211,640
|
|
Total Other
Liabilities
|
22,927,884
|
24,130,512
|
|
|
|
|
|
Total
Liabilities
|
67,934,291
|
50,563,534
|
|
|
|
|
|
STOCKHOLDERS'
DEFICIT
|
|
|
|
AREC - Class A
Common stock: $.0001 par value; 230,000,000 shares
|
|
|
|
authorized,
27,410,512 and 17,763,469 shares issued and outstanding for the
period end
|
2,740
|
1,776
|
|
AREC - Series A
Preferred stock: $.0001 par value; 481,780 shares authorized, nil
and 4,817,792 shares issued and outstanding
|
-
|
48
|
|
AREC - Series B
Preferred stock: $.001 par value; 20,000,000 shares authorized, nil
and nil shares issued and outstanding, respectively
|
-
|
-
|
|
AREC - Series C
Preferred stock: $.001 par value; 20,000,000 shares authorized, nil
and 50,000 shares issued and outstanding
|
-
|
5
|
|
Additional paid-in
capital
|
90,326,104
|
42,913,532
|
|
Accumulated
deficit
|
(123,033,485
|
(52,115,183)
|
|
|
|
|
|
Total Stockholders'
Deficit
|
(32,704,641
|
(9,199,822)
|
|
|
|
|
|
TOTAL
LIABILITIES AND STOCKHOLDERS' DEFICIT
|
35,229,650
|
41,363,712
|
5
AMERICAN RESOURCES CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
2019
|
2018
|
|
Cash
Flows from Operating activities:
|
|
|
|
Net
loss
|
$(70,918,302)
|
$(12,757,312)
|
|
Adjustments
to reconcile net income (loss) to net cash
|
|
|
|
Depreciation
|
4,588,136
|
2,461,557
|
|
Amortization of
mining rights
|
1,657,673
|
478,801
|
|
Accretion
expense
|
1,482,349
|
1,366,322
|
|
Gain on
disposition
|
-
|
(807,591)
|
|
Forgiveness of
debt
|
-
|
(68,010)
|
|
Gain on purchase of
assets
|
(394,484)
|
-
|
|
Impairment
loss
|
27,688,030
|
-
|
|
Amortization of
debt discount and issuance costs
|
7,725,076
|
670,601
|
|
Recovery of
advances receivable
|
(177,686)
|
(74,887)
|
|
Warrant
expense
|
2,524,500
|
-
|
|
Warrant
modification expense
|
2,545,360
|
-
|
|
Insurance of common
shares for services
|
1,906,253
|
-
|
|
Loss on settlement
of accounts payable with common shares
|
22,660
|
-
|
|
Stock compensation
expense
|
377,255
|
782,220
|
|
Change
in current assets and liabilities:
|
|
|
|
|
|
|
|
Accounts
receivable
|
(1,000,917)
|
531,882
|
|
Prepaid expenses
and other assets
|
147,826
|
(147,826)
|
|
Inventory
|
(351,830)
|
451,296
|
|
Accounts
payable
|
1,164,080
|
2,496,749
|
|
Account payable
related party
|
243,502
|
474,654
|
|
Funds held for
others
|
(79,662)
|
(3,166)
|
|
Accrued
interest
|
1,643,075
|
782,166
|
|
Cash used in
operating activities
|
(19,207,106)
|
(3,365,544)
|
|
|
|
|
|
Cash
Flows from Investing activities:
|
|
|
|
Advances made in
connection with management agreement
|
-
|
(99,582)
|
|
Advance repayment
in connection with management agreement
|
-
|
222,304
|
|
Cash paid for PPE,
net
|
(327,250)
|
(133,363)
|
|
Cash received from
acquisitions
|
650,000
|
-
|
|
Cash provided by
investing activities
|
322,750
|
(10,641)
|
|
|
|
|
|
Cash
Flows from Financing activities:
|
|
|
|
Principal payments
on long term debt
|
(2,059,484)
|
(2,309,571)
|
|
Proceeds from long
term debt (net of issuance costs $0 and $0)
|
8,660,527
|
8,431,965
|
|
Proceeds from
convertible debt
|
599,980
|
-
|
|
Proceeds from
related party
|
(9,861)
|
18,500
|
|
Net (payments)
proceeds from factoring agreement
|
1,489,508
|
(495,576)
|
|
Sale of common
stock for cash
|
7,767,698
|
-
|
|
Proceeds series C
preferred stock
|
-
|
50,000
|
|
Cash provided by
financing activities
|
16,448,368
|
5,695,319
|
|
|
|
|
|
Increase (decrease)
in cash
|
(2,435,988)
|
2,319,134
|
|
|
|
|
|
Cash, beginning of
year
|
2,704,799
|
385,665
|
|
|
|
|
|
Cash,
end of year
|
$268,811
|
$2,704,799
|
|
|
|
|
|
Supplemental
Information
|
|
|
|
|
|
|
|
Assumption of net
assets and liabilities for asset acquisitions
|
$6,623,999
|
$24,490,282
|
|
Shares issues in
asset acquisition
|
$24,400,000
|
$-
|
|
Equipment for notes
payable
|
$-
|
$906,660
|
|
Management fee
forgiven
|
$-
|
$17,840,615
|
|
Discount on note
due to beneficial conversion feature
|
$7,362,925
|
$-
|
|
Conversion of note
payable to common stock
|
$231,661
|
$261,000
|
|
Issuance of shares
as part of note payable consideration
|
$297,831
|
$-
|
|
Conversion of trade
payable to equity
|
$-
|
$76,740
|
|
Cashless exercise
of options into common shares
|
$-
|
$7
|
|
Conversion of
Preferred Series A Shares to common shares
|
$161
|
$1,445
|
|
Conversion of
Preferred Series C Shares to common shares
|
$1
|
$-
|
|
Return of shares
related to employee settlement
|
$11
|
$-
|
|
Conversion and
settlement of Preferred Series B Shares and dividends to common
shares
|
$-
|
$114,000
|
|
Preferred Series B
Shares accrued interest
|
$-
|
$114,850
|
|
Warrant exercise
for common shares
|
$60
|
$-
|
|
Increase in related
parties payable
|
$-
|
$474,654
|
|
|
|
|
|
Cash paid for
interest
|
$557,663
|
$506,826
|
|
Cash paid for
income tax
|
$-
|
$-
|
6
Reconciliation of Non-GAAP Measures
Reconciliation
of Adjusted EBITDA to Amounts Reported Under U.S. GAAP
|
|
For the three months ended Dec. 31, 2019
|
For the twelve months ended Dec. 31, 2019
|
For the three months ended Dec. 31, 2018
|
For the twelve months ended Dec. 31, 2018
|
|
Net
Income
|
(40,047,544)
|
(70,918,302)
|
(4,054,610)
|
(12,757,313)
|
|
|
|
|
|
|
|
Interest
& Other Expenses
|
1,233,926
|
2,908,579
|
424,886
|
1,288,991
|
|
Income
Tax Expense
|
-
|
-
|
-
|
-
|
|
Accretion
Expense
|
519,650
|
1,482,349
|
249,571
|
1,366,319
|
|
Depreciation
|
1,551,389
|
4,588,136
|
682,018
|
2,461,557
|
|
Amortization
of Mining Rights
|
65,563
|
1,657,673
|
297,416
|
478,801
|
|
Amortization
of Dedt Discount & Issuance
|
670,601
|
7,725,076
|
-
|
-
|
|
Non-Cash
Stock Options
|
131,869
|
377,225
|
-
|
-
|
|
Non-Cash
Warrant Expense
|
-
|
5,069,860
|
-
|
-
|
|
Non-Cash
Share Comp. Expense
|
100,213
|
1,906,253
|
-
|
-
|
|
Development
Costs
|
1,324,063
|
7,236,652
|
1,626,402
|
3,815,235
|
|
Non-Cash
Impairment
|
27,688,030
|
27,688,030
|
-
|
-
|
|
PCR
Restructuring Expenses
|
3,669,164
|
3,669,164
|
-
|
-
|
|
|
|
|
|
|
|
Total
Adjustments
|
36,954,468
|
64,308,997
|
3,280,293
|
9,410,903
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
(3,093,076)
|
(6,609,305)
|
(774,317)
|
(3,346,410)
|
(1)
Adjusted EBITDA is
defined as net income before net interest expense, income tax
expense, accretion expense, depreciation, non-cash stock
compensation expense, transaction and other professional fees, and
development costs. Adjusted EBITDA is not a measure of financial
performance in accordance with GAAP, and we believe items excluded
from Adjusted EBITDA are significant to a reader in understanding
and assessing our financial condition. Therefore, Adjusted EBITDA
should not be considered in isolation, nor as an alternative to net
income, income from operations, cash flow from operations or as a
measure of our profitability, liquidity, or performance under GAAP.
We believe that Adjusted EBITDA presents a useful measure of our
ability to incur and service debt based on ongoing operations.
Furthermore, similar measures are used by analysts to evaluate our
operating performance. Investors should be aware that our
presentation of Adjusted EBITDA may not be comparable to similarly
titled measures used by others.
Use of Non-GAAP Financial Measures
This
release contains the use of certain U.S. non-GAAP financial
measures. These non-GAAP financial measures are provided as
supplemental information for financial measures prepared in
accordance with GAAP. Management believes that these non-GAAP
financial measures provide additional insight into the performance
of the Company, and reflect how management analyzes Company
performance and compares that performance against other companies.
These non-GAAP financial measures may not be comparable to other
similarly titled measures used by other entities.
About American Resources Corporation
American Resources Corporation is a supplier of high-quality raw
materials to the rapidly growing global infrastructure market. The
Company is focused on the extraction and processing of
metallurgical carbon, an essential ingredient used in steelmaking.
American Resources has a growing portfolio of operations located in
the Central Appalachian basin of eastern Kentucky and southern West
Virginia where premium quality metallurgical carbon deposits are
concentrated.
7
Special Note Regarding Forward-Looking Statements
This
press release contains “forward-looking statements”
within the meaning of the Private Securities Litigation Reform Act
of 1995. Forward-looking statements involve known and unknown
risks, uncertainties, and other important factors that could cause
the Company’s actual results, performance, or achievements or
industry results to differ materially from any future results,
performance, or achievements expressed or implied by these
forward-looking statements. These statements are subject to a
number of risks and uncertainties, many of which are beyond
American Resources Corporation’s control. The words
“believes”, “may”, “will”,
“should”, “would”, “could”,
“continue”, “seeks”,
“anticipates”, “plans”,
“expects”, “intends”,
“estimates”, or similar expressions are intended to
identify forward-looking statements, although not all
forward-looking statements contain such identifying words. Any
forward-looking statements included in this press release are made
only as of the date of this release. The Company does not undertake
any obligation to update or supplement any forward-looking
statements to reflect subsequent events or circumstances. The
Company cannot assure you that the projected results or events will
be achieved.
PR Contact:
Precision
Public Relations
Matt
Sheldon
917-280-7329
matt@precisionpr.co
Investor Contact:
JTC
Team, LLC
Jenene
Thomas
833-475-8247
AREC@jtcir.com
Company Contact:
Mark
LaVerghetta
317-855-9926
ext. 0
Vice
President of Corporate Finance and Communications
investor@americanresourcescorp.com
Source:
American Resources Corporation
8