|
ENGLEWOOD, Colo.--(BUSINESS WIRE)--
Westmoreland Coal Company (WLB) today reported its results for
fiscal year 2014.
-
2014 results include the results of Canadian operations since the
acquisition on April 28, 2014. These results exclude results from
Westmoreland Resource Partners, LP (“WMLP”) and the Buckingham Mine,
except for the WMLP one-time charges outlined in the table below.
-
Revenues grew 65.4% in 2014 to a record $1,116.0 million versus $674.7
million in 2013.
-
Adjusted EBITDA for 2014 grew 50.8% to a record $175.4 million, which
is in the middle of the $166 to $184 million range that we announced
upon the Canadian acquisition. Adjusted EBITDA for 2013 was $116.3
million.
-
Net loss applicable to common shareholders for 2014 was $173.1 million
and included charges of $142.1 million outlined in the table below,
consisting of debt extinguishment losses, derivative based and foreign
exchange losses, acquisition costs and cost of sales related to
inventory written up to fair value in the Canadian acquisition,
duplicative and incremental interest incurred before the close of the
Canadian transaction, and restructuring charges.
-
Westmoreland U.S. mines continued their strong safety performance,
achieving reportable and lost time incident rates approximately 75.4%
and 73.9%, respectively, of the national averages for surface
operations for the year ended December 31, 2014.
-
Westmoreland currently holds 4,512,500 common units of Westmoreland
Resource Partners, LP, whose unit price on February 26, 2015 was
$10.70.
“2014 was a year of extraordinary activity at Westmoreland Coal
Company,” noted Keith E. Alessi, Chief Executive Officer. “In 2014, we
successfully financed, closed and integrated the Canadian acquisition;
improved our balance sheet through an equity offering, monetized our
contract at Westshore Terminal and refinanced our outstanding debt
facility; received a credit upgrade from both Moody’s and S&P; signed
significant contract extensions with both customers and labor unions;
and finished the year with the successful acquisition of Oxford
Resources GP, LLC, the general partner of Oxford Resource Partners, LP,
as a platform for entry into the MLP space. We are gratified that
adjusted EBITDA fell in the midpoint of our projected range,
particularly in light of the weaker Canadian dollar and mild weather
throughout the year that impacted our power operations.”
For 2015, Mr. Alessi noted that “we recently released guidance that
reflects that our base business will continue to operate at historical
levels, despite the current exchange rates and power and export prices
that are built into the guidance range.
“Westmoreland continues to achieve reportable incident and lost time
incident rates lower than the national average for surface mines in the
United States. Having fully integrated the Canadian operations into
Westmoreland, we are working diligently to bring our safety culture to
our Canadian mines and provide the safest work environment possible for
our employees. We look forward to continued success in 2015 due to the
hard work and dedication of our 3,440 employees at Westmoreland Coal
Company and Westmoreland Resources GP, LLC.”
Safety
Safety performance for 2014 at Westmoreland mines was as follows:
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2014
|
|
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|
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Reportable
|
|
|
|
|
|
|
|
|
Lost Time
|
U.S. Operations
|
|
|
|
1.29
|
|
|
|
|
|
|
|
|
0.88
|
U.S. National Average
|
|
|
|
1.71
|
|
|
|
|
|
|
|
|
1.19
|
Percentage
|
|
|
|
75.4%
|
|
|
|
|
|
|
|
|
73.9%
|
|
|
|
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|
|
|
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|
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|
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|
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Recordable
|
|
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|
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Lost Time
|
Canadian Operations (April 28, 2014 through December 31, 2014)
|
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|
4.82
|
|
|
|
|
|
|
|
|
0.71
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|
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|
|
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|
|
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Financial Results
Westmoreland’s revenues in 2014 increased to $1,116.0 million compared
with $674.7 million in 2013. Adjusted EBITDA for 2014 increased to
$175.4 million from $116.3 million in 2013. Net loss to common
shareholders increased by $167.0 million, from $6.1 million ($0.42 per
basic and diluted share) in 2013 to $173.1 million ($10.86 per basic and
diluted share) in 2014.
Revenues increased primarily due to the Canadian acquisition and new
customer sales.
Adjusted EBITDA increased due to the Canadian acquisition, but was
offset by the renegotiated ROVA contract and unfavorable power prices,
the expiration of the Indian Coal Tax Credit, and unfavorable weather
impacts.
The large increase in 2014 net loss was driven by numerous factors:
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Year ended
December 31,
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2014
|
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|
|
|
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|
(In thousands)
|
Loss on debt extinguishment
|
|
|
|
|
|
|
|
|
$
|
(47,532
|
)
|
Loss on debt extinguishment (WMLP)
|
|
|
|
|
|
|
|
|
(1,622
|
)
|
Derivative losses
|
|
|
|
|
|
|
|
|
(31,100
|
)
|
Acquisition and transition costs
|
|
|
|
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(26,783
|
)
|
Restructuring charges
|
|
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|
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|
(12,206
|
)
|
Restructuring charges (WMLP)
|
|
|
|
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|
|
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(2,783
|
)
|
Incremental interest incurred before close of transaction
|
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(11,191
|
)
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Canadian Acquisition bridge facility commitment fee
|
|
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(4,875
|
)
|
Foreign exchange loss
|
|
|
|
|
|
|
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|
(4,016
|
)
|
|
|
|
|
|
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|
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|
$
|
(142,108
|
)
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|
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Q4 2014 Adjusted EBITDA increased to $64.9 million from $28.5 million in
Q4 2013. Q4 2014 revenues increased to $310.0 million from $173.9
million in Q4 2013. Westmoreland’s Q4 2014 net loss to common
shareholders was $41.1 million and was impacted by debt extinguishment
losses, restructuring charges and acquisition expenses.
Coal - U.S. Segment Operating Results
The following table summarizes Westmoreland’s 2014 and 2013 U.S. coal
segment performance:
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Year Ended December 31,
|
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|
|
|
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|
|
Increase / (Decrease)
|
|
|
|
|
|
2014
|
|
|
|
2013
|
|
|
|
$
|
|
|
|
%
|
|
|
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|
(In thousands, except per ton data)
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|
Revenues
|
|
|
|
|
$
|
642,075
|
|
|
|
|
$
|
587,119
|
|
|
|
|
$
|
54,956
|
|
|
|
|
9.4
|
%
|
Operating income
|
|
|
|
|
24,183
|
|
|
|
|
44,471
|
|
|
|
|
(20,288
|
)
|
|
|
|
(45.6
|
)%
|
Adjusted EBITDA
|
|
|
|
|
111,699
|
|
|
|
|
116,604
|
|
|
|
|
(4,905
|
)
|
|
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|
(4.2
|
)%
|
Tons sold - millions of equivalent tons
|
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|
28.3
|
|
|
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|
24.9
|
|
|
|
|
3.4
|
|
|
|
|
13.7
|
%
|
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|
|
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|
|
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|
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Westmoreland’s 2014 coal segment revenues and tons sold increased
primarily due to new customer sales at the Absaloka Mine and fewer
customer outages affecting the Absaloka and Beulah Mines. Operating
income and Adjusted EBITDA were negatively impacted by weather impacts,
rail service issues at the Absaloka Mine, acquisition costs and
increased maintenance expenses. These decreases were partially offset
with increased revenues described above.
Coal - Canada Segment Operating Results
The following table summarizes Westmoreland’s 2014 and 2013 Canada coal
segment performance:
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|
Year Ended December 31,
|
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|
|
2014
|
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|
|
2013
|
|
|
|
|
(In thousands, except per ton data)
|
Revenues
|
|
|
|
$
|
388,664
|
|
|
|
|
$
|
—
|
Operating loss
|
|
|
|
(2,670
|
)
|
|
|
|
—
|
Adjusted EBITDA
|
|
|
|
79,010
|
|
|
|
|
—
|
Tons sold - millions of equivalent tons
|
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|
|
16.6
|
|
|
|
|
—
|
|
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|
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|
|
|
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|
The above table represents results from the Canadian Acquisition date of
April 28, 2014 to December 31, 2014. Operating income was negatively
impacted by $14.2 million of cost of sales related to the sale of
inventory written up to fair value in the acquisition and $9.6 million
of restructuring charges.
Coal - WMLP Segment Operating Results
The 2014 WMLP coal segment operating loss was $2.8 million due to
expenses related to severance charges that occurred on December 31,
2014. These operations were acquired on December 31, 2014; therefore,
information for the year ended December 31, 2014 includes minimal
operating activity.
Power Segment Operating Results
The following table summarizes Westmoreland’s 2014 and 2013 power
segment performance:
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Year Ended December 31,
|
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|
|
|
|
|
|
Increase / (Decrease)
|
|
|
|
|
2014
|
|
|
|
2013
|
|
|
|
$
|
|
|
|
%
|
|
|
|
(In thousands)
|
Revenues
|
|
|
|
$
|
85,253
|
|
|
|
|
$
|
87,567
|
|
|
|
|
$
|
(2,314
|
)
|
|
|
|
(2.6
|
)%
|
Operating income (loss)
|
|
|
|
(35,023
|
)
|
|
|
|
4,907
|
|
|
|
|
(39,930
|
)
|
|
|
|
(813.7
|
)%
|
Adjusted EBITDA
|
|
|
|
6,718
|
|
|
|
|
20,886
|
|
|
|
|
(14,168
|
)
|
|
|
|
(67.8
|
)%
|
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|
|
|
|
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Westmoreland’s 2014 power segment revenues and Adjusted EBITDA decreased
and operating income decreased to a loss due to the renegotiated ROVA
contract, unfavorable power prices and cooler than average weather
during the summer. Operating income was also negatively impacted by
$31.1 million of derivative losses on ROVA’s purchased-power contracts.
Nonoperating Results
Heritage cash expenditures and expenses remained consistent in 2014
compared to 2013.
Interest expense for 2014 increased to $84.2 million from $39.9 million
in 2013 as a result of higher debt levels.
Cash Flow, Leverage and Liquidity
2014 operating cash flows decreased to $48.2 million, primarily due to
incremental interest from higher debt levels, unfavorable impacts of
weather, the restructured ROVA contract and unfavorable power prices,
and the expiration of the Indian Coal Tax Credit.
Westmoreland’s cash position decreased primarily due to debt refinancing
and the Oxford Acquisition.
Westmoreland had the following liquidity at December 31, 2014 and
December 31, 2013:
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|
December 31,
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|
|
2014
|
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|
|
|
|
|
|
2013
|
|
|
|
|
(In millions)
|
Cash and cash equivalents
|
|
|
|
$
|
14.3
|
|
|
|
|
|
|
|
|
|
$
|
61.1
|
WML revolving line of credit
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
23.1
|
Corporate revolving line of credit
|
|
|
|
16.9
|
|
|
|
|
|
|
|
|
|
20.0
|
Total
|
|
|
|
$
|
31.2
|
|
|
|
|
|
|
|
|
|
$
|
104.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Corporate revolving line of credit available capacity was decreased
to $50.0 million during the fourth quarter, and it had $9.6 million of
borrowings with outstanding letters of credit in the amount of $23.5
million as of December 31, 2014. The WML revolving line of credit was
terminated during the second quarter. Subsequent to December 31, 2014,
Westmoreland received net proceeds of $71.0 million from an add-on term
loan.
2015 Guidance
The following table bridges pro forma Adjusted EBITDA to 2015 guidance
(excluding WMLP) (in millions):
Pro forma Adjusted EBITDA year ended December 31, 2014
|
|
|
|
|
|
|
|
$
|
222.9
|
|
|
|
|
|
|
|
|
|
|
|
Key year-on-year differences:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impact of weakening Canadian dollar
|
|
|
|
|
|
|
|
(14.4
|
)
|
Drop-down of Kemmerer reserve royalty to WMLP*
|
|
|
|
|
|
|
|
(5.0
|
)
|
Impact of lower market prices on power operations
|
|
|
|
|
|
|
|
(4.0
|
)
|
Buckingham Mine acquisition
|
|
|
|
|
|
|
|
8.8
|
|
Improvement in base business due to weather, outages, and
operational improvement
|
|
|
|
|
|
|
|
6.7
|
|
|
|
|
|
|
|
|
|
|
|
Midpoint of 2015 guidance range
|
|
|
|
|
|
|
|
$
|
215.0
|
|
|
|
|
|
|
|
|
|
|
|
|
*Westmoreland expects to receive WMLP distributions of approximately
$3.9 million attributable to its ownership of WMLP limited partnership
units but this amount will not be included in Westmoreland's Adjusted
EBITDA calculation.
Conference Call
A conference call regarding Westmoreland Coal Company’s 2014 results
will be held on February 27, 2015, at 10:00 a.m. Eastern Time. Call-in
numbers are:
Live Participant Dial In (Toll Free): 844-WCC-COAL (844-922-2625) Live
Participant Dial In (International): 201-689-8584
About Westmoreland Coal Company
Westmoreland Coal Company is the oldest independent coal company in the
United States. Westmoreland’s coal operations include sub-bituminous and
lignite surface coal mining in the Western United States and Canada, an
underground bituminous coal mine in Ohio, a char production facility,
and a 50% interest in an activated carbon plant. Westmoreland also owns
the general partner of and a majority interest in Westmoreland Resource
Partners, LP, formerly Oxford Resource Partners, LP, a publicly-traded
coal master limited partnership. Its power operations include ownership
of the two-unit ROVA coal-fired power plant in North Carolina. For more
information, visit www.westmoreland.com.
Cautionary Note Regarding Forward-Looking Statements
Forward-looking statements are based on Westmoreland’s current
expectations and assumptions regarding its business, the economy and
other future conditions. Because forward-looking statements relate to
the future, they are subject to inherent uncertainties, risks and
changes in circumstances that are difficult to predict. Our actual
results may differ materially from those contemplated by the
forward-looking statements, including Westmoreland’s projections for
2014 performance. Westmoreland cautions you against relying on any of
these forward-looking statements. They are statements neither of
historical fact nor guarantees or assurances of future performance.
Important factors that could cause actual results to differ materially
from those in the forward-looking statements include political,
economic, business, competitive, market, weather and regulatory
conditions.
Any forward-looking statements made by Westmoreland in this news release
speak only as of the date on which they were made. Westmoreland
undertakes no obligation to publicly update any forward-looking
statements, whether as a result of new information, future developments
or otherwise, except as may be required by law.
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|
Westmoreland Coal Company and Subsidiaries
Consolidated Statements of Operations (Unaudited)
|
|
|
|
|
|
|
|
|
|
Year Ended December 31,
|
|
|
|
|
2014
|
|
|
|
|
2013
|
|
|
|
|
2012
|
|
|
|
|
(In thousands, except per share data)
|
Revenues
|
|
|
|
$
|
1,115,992
|
|
|
|
|
|
$
|
674,686
|
|
|
|
|
|
$
|
600,437
|
|
Cost, expenses and other:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales
|
|
|
|
899,930
|
|
|
|
|
|
535,320
|
|
|
|
|
|
466,521
|
|
Depreciation, depletion and amortization
|
|
|
|
100,778
|
|
|
|
|
|
67,231
|
|
|
|
|
|
57,145
|
|
Selling and administrative
|
|
|
|
100,528
|
|
|
|
|
|
50,721
|
|
|
|
|
|
49,908
|
|
Heritage health benefit expenses
|
|
|
|
13,388
|
|
|
|
|
|
13,418
|
|
|
|
|
|
13,388
|
|
Loss (gain) on sales of assets
|
|
|
|
1,232
|
|
|
|
|
|
(74
|
)
|
|
|
|
|
528
|
|
Restructuring charges
|
|
|
|
14,989
|
|
|
|
|
|
5,078
|
|
|
|
|
|
—
|
|
Derivative loss
|
|
|
|
31,100
|
|
|
|
|
|
—
|
|
|
|
|
|
—
|
|
Income from equity affiliates
|
|
|
|
(3,159
|
)
|
|
|
|
|
—
|
|
|
|
|
|
—
|
|
Other operating loss (income)
|
|
|
|
181
|
|
|
|
|
|
(22,370
|
)
|
|
|
|
|
(15,925
|
)
|
|
|
|
|
1,158,967
|
|
|
|
|
|
649,324
|
|
|
|
|
|
571,565
|
|
Operating income (loss)
|
|
|
|
(42,975
|
)
|
|
|
|
|
25,362
|
|
|
|
|
|
28,872
|
|
Other income (expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
|
(84,234
|
)
|
|
|
|
|
(39,937
|
)
|
|
|
|
|
(42,677
|
)
|
Loss on extinguishment of debt
|
|
|
|
(49,154
|
)
|
|
|
|
|
(64
|
)
|
|
|
|
|
(1,986
|
)
|
Interest income
|
|
|
|
6,400
|
|
|
|
|
|
1,366
|
|
|
|
|
|
1,496
|
|
Loss on foreign exchange
|
|
|
|
(4,016
|
)
|
|
|
|
|
—
|
|
|
|
|
|
—
|
|
Other income
|
|
|
|
1,031
|
|
|
|
|
|
364
|
|
|
|
|
|
723
|
|
|
|
|
|
(129,973
|
)
|
|
|
|
|
(38,271
|
)
|
|
|
|
|
(42,444
|
)
|
Loss before income taxes
|
|
|
|
(172,948
|
)
|
|
|
|
|
(12,909
|
)
|
|
|
|
|
(13,572
|
)
|
Income tax expense (benefit)
|
|
|
|
232
|
|
|
|
|
|
(4,782
|
)
|
|
|
|
|
90
|
|
Net loss
|
|
|
|
(173,180
|
)
|
|
|
|
|
(8,127
|
)
|
|
|
|
|
(13,662
|
)
|
Less net loss attributable to noncontrolling interest
|
|
|
|
(921
|
)
|
|
|
|
|
(3,430
|
)
|
|
|
|
|
(6,436
|
)
|
Net loss attributable to the Parent company
|
|
|
|
(172,259
|
)
|
|
|
|
|
(4,697
|
)
|
|
|
|
|
(7,226
|
)
|
Less preferred stock dividend requirements
|
|
|
|
859
|
|
|
|
|
|
1,360
|
|
|
|
|
|
1,360
|
|
Net loss applicable to common shareholders
|
|
|
|
$
|
(173,118
|
)
|
|
|
|
|
$
|
(6,057
|
)
|
|
|
|
|
$
|
(8,586
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share applicable to common shareholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
|
|
|
|
$
|
(10.86
|
)
|
|
|
|
|
$
|
(0.42
|
)
|
|
|
|
|
$
|
(0.61
|
)
|
Weighted average number of common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
|
|
|
|
15,941
|
|
|
|
|
|
14,491
|
|
|
|
|
|
14,033
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Westmoreland Coal Company and Subsidiaries
Summary Financial Information (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31,
|
|
|
|
|
|
|
|
|
2014
|
|
|
|
2013
|
|
|
|
|
|
|
|
|
(In thousands)
|
Cash Flow
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities
|
|
|
|
|
|
|
|
$
|
48,193
|
|
|
|
|
$
|
80,717
|
|
Net cash used in investing activities
|
|
|
|
|
|
|
|
(430,612
|
)
|
|
|
|
(21,897
|
)
|
Net cash provided by (used in) financing activities
|
|
|
|
|
|
|
|
338,706
|
|
|
|
|
(29,320
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2014
|
|
|
|
December 31, 2013
|
|
|
|
|
|
|
|
|
(In thousands)
|
Balance Sheet Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total cash and cash equivalents
|
|
|
|
|
|
|
|
$
|
14,258
|
|
|
|
|
$
|
61,110
|
|
Total assets
|
|
|
|
|
|
|
|
1,829,578
|
|
|
|
|
946,685
|
|
Total debt
|
|
|
|
|
|
|
|
984,787
|
|
|
|
|
339,837
|
|
Working capital deficit
|
|
|
|
|
|
|
|
(13,126
|
)
|
|
|
|
(7,989
|
)
|
Total deficit
|
|
|
|
|
|
|
|
(364,706
|
)
|
|
|
|
(187,879
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares outstanding
|
|
|
|
|
|
|
|
17,103
|
|
|
|
|
14,592
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31,
|
|
|
|
|
2014
|
|
|
|
2013
|
|
|
|
2012
|
|
|
|
|
(In thousands)
|
Adjusted EBITDA by Segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Coal - U.S.
|
|
|
|
$
|
111,699
|
|
|
|
|
$
|
116,604
|
|
|
|
|
$
|
110,835
|
|
Coal - Canada
|
|
|
|
79,010
|
|
|
|
|
—
|
|
|
|
|
—
|
|
Coal - WMLP
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
Power
|
|
|
|
6,718
|
|
|
|
|
20,886
|
|
|
|
|
19,054
|
|
Heritage
|
|
|
|
(14,780
|
)
|
|
|
|
(14,498
|
)
|
|
|
|
(14,711
|
)
|
Corporate
|
|
|
|
(7,296
|
)
|
|
|
|
(6,727
|
)
|
|
|
|
(9,746
|
)
|
Total
|
|
|
|
$
|
175,351
|
|
|
|
|
$
|
116,265
|
|
|
|
|
$
|
105,432
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
|
|
2014
|
|
|
|
|
2013
|
|
|
|
|
2012
|
|
|
|
|
(In thousands)
|
Reconciliation of Adjusted EBITDA to Net loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
|
|
$
|
(173,180
|
)
|
|
|
|
|
$
|
(8,127
|
)
|
|
|
|
|
$
|
(13,662
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax (benefit) expense from continuing operations
|
|
|
|
232
|
|
|
|
|
|
(4,782
|
)
|
|
|
|
|
90
|
|
Interest income
|
|
|
|
(6,400
|
)
|
|
|
|
|
(1,366
|
)
|
|
|
|
|
(1,496
|
)
|
Interest expense
|
|
|
|
84,234
|
|
|
|
|
|
39,937
|
|
|
|
|
|
42,677
|
|
Depreciation, depletion and amortization
|
|
|
|
100,778
|
|
|
|
|
|
67,231
|
|
|
|
|
|
57,145
|
|
Accretion of ARO and receivable
|
|
|
|
21,604
|
|
|
|
|
|
12,681
|
|
|
|
|
|
12,189
|
|
Amortization of intangible assets and liabilities
|
|
|
|
138
|
|
|
|
|
|
665
|
|
|
|
|
|
658
|
|
EBITDA
|
|
|
|
27,406
|
|
|
|
|
|
106,239
|
|
|
|
|
|
97,601
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring charges
|
|
|
|
14,989
|
|
|
|
|
|
5,078
|
|
|
|
|
|
—
|
|
Loss on foreign exchange
|
|
|
|
4,016
|
|
|
|
|
|
—
|
|
|
|
|
|
—
|
|
Loss on extinguishment of debt
|
|
|
|
49,154
|
|
|
|
|
|
64
|
|
|
|
|
|
1,986
|
|
Acquisition related costs(1)
|
|
|
|
26,785
|
|
|
|
|
|
—
|
|
|
|
|
|
—
|
|
Customer payments received under loan and lease receivables(2)
|
|
|
|
12,388
|
|
|
|
|
|
—
|
|
|
|
|
|
—
|
|
Derivative loss
|
|
|
|
31,100
|
|
|
|
|
|
—
|
|
|
|
|
|
—
|
|
Loss (gain) on sale of assets and other adjustments
|
|
|
|
3,431
|
|
|
|
|
|
(438
|
)
|
|
|
|
|
(195
|
)
|
Share-based compensation
|
|
|
|
6,082
|
|
|
|
|
|
5,322
|
|
|
|
|
|
6,040
|
|
Adjusted EBITDA
|
|
|
|
$
|
175,351
|
|
|
|
|
|
$
|
116,265
|
|
|
|
|
|
$
|
105,432
|
|
____________________
(1)
|
|
|
Includes acquisition and transition costs included in Selling
and administrative on the Consolidated Statements of
Operations and the impact of cost of sales related to the sale of
inventory written up to fair value in the Canadian Acquisition.
|
(2)
|
|
|
Represents a return of and on capital. These amounts are not
included in operating income or operating cash flows, as the capital
outlays are treated as loan and lease receivables, but are included
within Adjusted EBITDA so that the cash received by the Company is
treated consistently with all other contracts within the Company
that do not result in loan and lease receivable accounting.
|
|
|
|
|
EBITDA and Adjusted EBITDA are supplemental measures of financial
performance that are not required by, or presented in accordance with,
GAAP. EBITDA and Adjusted EBITDA are included in this news release
because they are key metrics used by management to assess Westmoreland’s
operating performance and Westmoreland believes that EBITDA and Adjusted
EBITDA are useful to an investor in evaluating our operating performance
because these measures:
-
are used widely by investors to measure a company’s operating
performance without regard to items excluded from the calculation of
such terms, which can vary substantially from company to company
depending upon accounting methods and book value of assets, capital
structure and the method by which assets were acquired, among other
factors; and
-
help investors to more meaningfully evaluate and compare the results
of Westmoreland’s operations from period to period by removing the
effect of our capital structure and asset base from our operating
results.
Neither EBITDA nor Adjusted EBITDA is a measure calculated in accordance
with GAAP. The items excluded from EBITDA and Adjusted EBITDA are
significant in assessing Westmoreland’s operating results. EBITDA and
Adjusted EBITDA have limitations as analytical tools, and should not be
considered in isolation from, or as a substitute for, analysis of our
results as reported under GAAP. For example, EBITDA and Adjusted EBITDA:
-
do not reflect our cash expenditures, or future requirements for
capital and major maintenance expenditures or contractual commitments;
-
do not reflect income tax expenses or the cash requirements necessary
to pay income taxes;
-
do not reflect changes in, or cash requirements for, our working
capital needs; and
-
do not reflect the significant interest expense, or the cash
requirements necessary to service interest or principal payments, on
certain of our debt obligations.
In addition, although depreciation and amortization are non-cash
charges, the assets being depreciated and amortized will often have to
be replaced in the future, and EBITDA and Adjusted EBITDA do not reflect
any cash requirements for such replacements. Other companies in our
industry and in other industries may calculate EBITDA and Adjusted
EBITDA differently from the way that Westmoreland does, limiting their
usefulness as comparative measures. Because of these limitations, EBITDA
and Adjusted EBITDA should not be considered as measures of
discretionary cash available to us to invest in the growth of our
business. Westmoreland compensates for these limitations by relying
primarily on its GAAP results and using EBITDA and Adjusted EBITDA only
as supplemental data.
|
|