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Actionable news in WLB: Westmoreland Coal Company,

Westmoreland Coal: 9540 South Maroon Circle, Suite 200

The following excerpt is from the company's SEC filing.

Englewood, Colorado 80112

(855) 922-6463 Telephone

NEWS RELEASE

Westmoreland Reports Third Quarter 2015 Results, Updates Full Year Guidance

Englewood, CO

– October 23, 2015 - Westmoreland Coal Company (NasdaqGM:WLB) today announced results of the third quarter ended

September 30, 2015

and updated its full year guidance.

Revenues for the quarter were

$349.8 million

versus

$337.8 million

in the same quarter in 2014. Adjusted EBITDA for the third quarter of 2015 was

$48.0 million< br>
, while Adjusted EBITDA for the third quarter of 2014 was

$41.7 million

. Adjusted EBITDA for this quarter included results of WMLP and the Buckingham operations, which were not present during the third quarter of 2014. Net loss for the quarter was

$46.6 million

$49.3 million

"The quarter was a steady one despite very mild weather and customer outages," said CEO Keith E. Alessi. "Strength in our historical US Coal operations offset weakness in our Ohio operations."

"As we now have greater visibility, we are updating our guidance for the year. Since issuing original guidance, we have seen numerous impacts on EBITDA and changes in capital spending. We still anticipate the free cash flow we generate for 2015 will service cash interest and additionally retire approximately $44 million in debt, or $2.45 per share. This falls within the range of outcomes of our previous guidance for EBITDA and capital. While our core business remains solid, we have experienced a prolonged plant outage at the largest customer of the MLP and Buckingham. The customer expected to be fully operational in the third quarter but continuing operational problems have delayed returning to full capacity until mid-November. The cumulative EBITDA impact of this outage in 2015 is $15.0 million versus our original guidance. Additionally, the high level of M&A activity conducted during the third quarter resulted in approximately $5.0 million in incremental professional services fees. We have adjusted our EBITDA guidance by $20.0 million to reflect these two items and we narrowed the range. We have also reduced our projected capital expenditures for the year due to lower tons sold and outstanding management of capital projects. A table reflecting these guidance updates is shown within this press release."

"During the quarter, we completed diligence on several potential acquisitions which we chose not to pursue because they did not meet our criteria. We will remain disciplined in our approach to business development. We intend to close the San Juan transaction before December 31, subject to closing conditions and approvals, using a combination of cash on hand and debt financing."

"I am extraordinarily proud of the numerous awards our mines received during the quarter including the prestigious Sentinels of Safety award and the 2015 Railroad Commission of Texas Coal Mining Reclamation Award at Jewett and the 2015 North Dakota Public Service Commission Reclamation Award at Beulah."

Westmoreland News Release

Updated Guidance

Guidance Summary

Original Range

Revised Range

(in millions)

Capital Expenditures

Per Ton

Safety performance through the first

months of 2015 at Westmoreland mines was as follows:

Reportable

Lost Time

U.S. Operations

U.S. National Average

Percentage

Canadian Operations

Financial Results

Westmoreland’s revenues in

Q3 2015

increased to

compared with

Q3 2014

Adjusted EBITDA increased to

. Net loss applicable to common shareholders decreased by

$2.8 million

, from

per basic share) in

Revenues increased primarily due to the WMLP and Buckingham acquisitions. Adjusted EBITDA increased due to the WMLP and Canadian acquisitions, but was offset somewhat by unfavorable weather conditions and customer outages at several operations impacting sales.

The decrease in Q3 net loss was driven largely by a $17.8 million decrease in derivative losses on our ROVA power contract and a $3.3 million decrease in restructuring charges. These changes were offset by $5.6 a million increase in interest expense due to our higher debt levels arising from our MLP and Buckingham acquisitions and $5.4 million in additional losses on extinguishment of debt arising from the early repayment of amounts under our term loan using the proceeds received from the Kemmerer Drop described below.

During the quarter we contributed 100% of the outstanding equity interests in Westmoreland Kemmerer, LLC ("WKL") to WMLP for $230 million in aggregate consideration (the "Kemmerer Drop"). The results of operations of WKL have been reclassified into the MLP segment and out of the US Coal...


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