SALT LAKE CITY, Aug. 23, 2011 (GLOBE NEWSWIRE) -- America West Resources, Inc. (OTCBB:AWSR), a domestic compliant coal producer with mining operations in Central Utah, today announced its financial and operational results for the three and six month reporting periods ended June 30, 2011.
Financial Highlights for the Three Months Ended June 30, 2011 Compared to the Three Months Ended June 30, 2010:
- Total revenues rose approximately 16% to $4,008,255 from $3,384,061 and represented a record revenue quarter for the Company and the third consecutive quarter of double-digit revenue growth.
- Record coal production was also achieved in the second quarter, rising to 102,000 tons, up from 95,000 tons of coal produced in the first quarter of 2011 and 64,000 tons produced in the fourth quarter of 2010.
- Net loss declined 12.5% to $3,882,476, or $0.09 loss per basic and diluted share, from $4,371,147, or $0.18 loss per basic and diluted share. The approximate $3.7 million in net loss for the quarter included approximately $2.2 million in one-time and non-cash charges.
Financial Highlights for the Six Months Ended June 30, 2011 Compared to the Six Months Ended June 30, 2010:
-
Revenues totaled $7,494,199, climbing 67% from $4,484,982.
-
Loss from operations decreased 19% to $3,479,727 from $4,289,393.
- After factoring approximately $7.9 million in one-time and non-cash charges, net loss increased 10% to $10,352,050, or $0.26 loss per basic and diluted share, from $9,337,205, or $0.41 loss per basic and diluted share.
The Company's balance sheet reflects total assets of $30.08 million as of June 30, 2011, up from $23.48 million at December 31, 2010, while total liabilities were $30.35 million and $32.58 million, respectively. During the first six months of 2011, the Company raised $4.50 million through a private placement of its common stock. Subsequent to the end of the quarter, America West converted a total of $11.27 million of debt and accrued interest into approximately 11.27 million shares of its common stock at a $1.00 per share. In addition, the Company raised an additional $2.00 million in gross proceeds through the private placement of common stock priced at $1.00 per share.
Dan Baker, Chief Executive Officer of America West Resources, noted, "The first half of 2011 has been defined by steady, positive progress on a number of key fronts. After three challenging years, we announced in the last week of May that we transitioned Horizon from its concentration on mine development to a focus on production with two continuous miners now in operation. As a result, our underground mining teams are now working to achieve a monthly production rate approximating 60,000 tons per month, or approximately 2,000 tons per day. With the delivery and deployment of two new shuttle cars in July, our production ramp-up has since been accelerating; fueling confidence that our third quarter financial performance will mark yet another record quarter for America West."
For more detailed information relating to the Company's second quarter 2011 results, please refer to the financial statements included with this press release and the 10-Q that was filed with the U.S. Securities and Exchange Commission on August 17, 2011.
| America West Resources, Inc. and Subsidiaries | ||
| CONSOLIDATED BALANCE SHEETS | ||
| (Unaudited) | ||
| June 30, 2011 | December 31, 2010 | |
| Assets | ||
| Current assets: | ||
| Cash and cash equivalents | $ 1,573 | $ 65,003 |
| Restricted cash | 4,010 | 4,010 |
| Accounts receivable | 676,123 | 466,871 |
| Inventory | 10,156 | 136,037 |
| Deferred financing costs | 702,703 | 543,291 |
| Prepaid expenses | 296,514 | 115,115 |
| Total current assets | 1,691,079 | 1,330,327 |
| Deposits | 926,839 | 804,148 |
| Property and equipment: | ||
| Property and equipment | 13,938,035 | 11,150,980 |
| Land and mineral properties | 23,947,926 | 19,627,847 |
| Less: accumulated depreciation and depletion | (10,418,965) | (9,439,156) |
| Net property and equipment | 27,466,996 | 21,339,671 |
| Total assets | $ 30,084,914 | $ 23,474,146 |
| Liabilities and Stockholders' Deficit | ||
| Current liabilities: | ||
| Bank overdraft | $ 238,697 | $ 180,733 |
| Accounts payable | 4,164,918 | 3,077,428 |
| Accounts payable – related party | 483,886 | 521,506 |
| Accrued expenses | 3,791,190 | 4,567,572 |
| Deferred revenue | 500,000 | 500,000 |
|
Short-term debt – related party, net of unamortized discounts of $2,368 and $58,897 |
53,738 | 3,120,599 |
|
Current maturities of long-term debt, net of unamortized discount of $1,028,605 and $2,197,251 |
9,604,600 | 17,772,358 |
|
Current maturities of convertible debt-related party net of unamortized discount of $40,723 and $0 |
107,506 | -- |
|
Current maturities of convertible debt net of unamortized discount of $946,095 and $0 |
3,003,384 | -- |
| Capital lease obligation | 90,814 | -- |
| Derivative liabilities | 814,959 | 1,594,370 |
| Total current liabilities | 22,853,692 | 31,334,566 |
| Long-term debt, net of unamortized discount of $15,963 and $0 | 553,640 | 1,114,450 |
| Convertible debt-related party net of unamortized discount of $176,158 and $0 | 465,040 | -- |
| Convertible debt net of unamortized discount of $2,402,362 and $0 | 6,341,998 | -- |
| Asset retirement obligation | 134,969 | 134,969 |
| Total liabilities | 30,349,339 | 32,583,985 |
| Stockholders' deficit: | ||
| Preferred stock, $0.0001 par value; 2,500,000 shares authorized; | ||
| none issued and outstanding | -- | -- |
| Common stock, $0.0001 par value; 300,000,000 shares authorized; | ||
| 44,930,674 and 33,459,440 shares issued and outstanding, | ||
| respectively | 4,492 | 3,346 |
| Additional paid-in capital | 49,190,374 | 29,994,056 |
| Accumulated deficit | (49,459,291) | (39,107,241) |
| Total stockholders' deficit | (264,425) | (9,109,839) |
| Total liabilities and stockholders' deficit | $ 30,084,914 | $ 23,474,146 |
| America West Resources, Inc. and Subsidiaries | ||||
| CONSOLIDATED STATEMENT OF OPERATIONS | ||||
| (Unaudited) | ||||
| Three Months Ended | Six Months Ended | |||
| June 30, | June 30, | |||
| 2011 | 2010 | 2011 | 2010 | |
| Coal sales | $ 4,005,504 | $ 3,377,413 | $ 7,468,743 | $ 4,460,517 |
| Machine repair services | 2,751 | 6,648 | 25,456 | 24,465 |
| Total revenue | 4,008,255 | 3,384,061 | 7,494,199 | 4,484,982 |
| Operating expenses: | ||||
| Operating costs and expenses | 3,467,133 | 1,187,165 | 5,892,906 | 1,292,541 |
| Depreciation, depletion and accretion | 551,179 | 1,616,336 | 979,808 | 2,657,921 |
| General and administrative | 2,043,510 | 1,648,458 | 4,101,212 | 4,823,913 |
| Total operating expenses | 6,061,822 | 4,451,959 | 10,973,926 | 8,774,375 |
| Loss from operations | (2,053,567) | (1,067,898) | (3,479,727) | (4,289,393) |
| Other income (expenses): | ||||
| Gain on derivative liabilities | 349,368 | 358,362 | 779,411 | 176,374 |
| Interest income | 501 | 30 | 502 | 84 |
| Interest expense | (1,872,707) | (614,328) | (6,839,808) | (2,176,957) |
| Loss on extinguishment of debt | (246,071) | (3,047,313) | (812,428) | (3,047,313) |
| Total other expenses | (1,768,909) | (3,303,249) | (6,872,323) | (5,047,812) |
| Net Loss | $(3,822,476) | $(4,371,147) | $(10,352,050) | $(9,337,205) |
| Basic and Diluted Loss Per Share | $ (0.09) | $ (0.18) | $ (0.26) | $ (0.41) |
| Weighted Average Shares Outstanding | ||||
| Basic and Diluted | 44,431,500 | 23,800,903 | 39,565,812 | 22,806,598 |
About America West Resources, Inc.
Headquartered in Salt Lake City, Utah, America West Resources is an established domestic coal producer focused on the mining of compliant (low-sulfur) coal and its sale primarily to utility companies and industrial customers in the western U.S. The Company operates the Horizon Mine, which has recoverable, compliant, high BTU coal reserves. For more information, please visit www.AmericaCoal.com.
The America West Resources, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=10183
Forward-Looking Statements
This news release contains forward-looking statements. Please refer to the Company's Form 10-K and other filings with the United States Securities and Exchange Commission (the "SEC") for additional information regarding risks and uncertainties, including, but not limited to, the risk factors listed from time to time in such SEC reports. Copies of these filings are available through the SEC's electronic data gathering analysis and retrieval system (EDGAR) at www.sec.gov. The forward-looking statements in this release do not constitute guarantees of future performance. Investors are cautioned that statements in this press release which are not strictly historical statements, including, without limitation, statements regarding current or future mining output, ability to obtain necessary equipment, personnel and permits to mine coal, production capabilities, management's strategy, plans and objectives for future operations, plans and objectives for production, plans and objectives for present and future production, plans and objectives for regulatory approval, and anticipated results, constitute forward-looking statements. Such forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated, including, without limitation, risks associated with coal production, mining in general and in our mines in particular, ability to achieve the coal output anticipated, ability to obtain permits, ability to hire and retain the necessary personnel, as well as other risks detailed in our filings with the SEC. We assume no obligation to update any forward-looking information contained in this press release or with respect to the announcements described herein.