Westmoreland Coal Company (NasdaqGM:WLB) today reported its third quarter results for 2011.
- Operating income increased $0.8 million from $7.8 million in Q3 2010 to $8.6 million in Q3 2011. Year to date 2011 operating income was $15.0 million compared to 2010 year to date operating income of $14.5 million.
- Adjusted EBITDA increased $1.4 million during Q3 2011 to $24.2 million as compared to $22.8 million in Q3 2010. Year to date 2011 Adjusted EBITDA was $61.7 million compared to year to date 2010 Adjusted EBITDA of $60.4 million.
- Net income applicable to common shareholders of $2.4 million ($0.18 per basic and diluted share) for Q3 2011 compared to Q3 2010 net income of $ 2.5 million ($0.23 per basic and diluted share). Year to date net loss for 2011 was $23.3 million compared to a year to date 2010 net income of $0.2 million. The 2011 net loss includes $17.0 million in charges related to the refinancing of debt in February 2011 and $3.2 million of expense on the conversion feature’s fair value adjustment.
- Westmoreland again continued its strong safety performance achieving reportable and lost time incident rates 55.5% and 52.5%, respectively, of the national averages for surface operations for the third quarter of 2011.
- During the third quarter of 2011, Westmoreland’s Western Energy Mine received an Excellence in Surface Coal Mining Award from the Office of Surface Mining for its reclamation efforts at the Company’s mine in Colstrip, Montana.
“We are very pleased with our third quarter results,” said Keith E. Alessi, Westmoreland’s President and CEO. “Despite losing significant tons again this quarter to flooding and record levels of hydropower generation, we managed to increase both our operating income and Adjusted EBITDA over the prior year. Additionally, through excellent preparation and response, our ROVA Power operation minimized its downtime and mitigated impacts Hurricane Irene had on our third quarter operations.”
“We are also very pleased with the continuation of our strong safety performance during the third quarter of 2011 as we again beat the national surface mine averages. We take great pride in another major mining award as our Western Energy Mine in Colstrip, Montana received the Office of Surface Mining’s Directors Award for Excellence in Surface Coal Mining.”
“During the quarter we made progress on one of our key strategic initiatives, the addition of new coal reserves, as we continued negotiations with resource owners at several at our mines. We hope to complete at least one of these negotiations by year end. In line with another of our key strategic initiatives, we also continue to explore opportunities to grow our business through the acquisition of operations that fit our core mine mouth business model.”
Westmoreland’s 2011 year to date net income includes $17.0 million of charges related to the refinancing of debt in February 2011 and $3.2 million of expense on the fair value adjustment on the conversion feature in the Company’s convertible debt that was for the most part converted to common stock and retired in February 2011. 2010 year to date net income included $0.9 million of expense related to the impact of the fair value adjustment of the conversion feature and the related debt discount. Excluding those items, net income decreased by $0.5 million.
The Company’s revenues in Q3 2011 increased to $132.4 million compared with $124.1 million in the third quarter of 2010. This increase was primarily driven by an increase in the Company’s coal segment revenues due to increased sales at its Absaloka, Beulah, and Jewett Mines. Favorable pricing also contributed to the increased revenues.
Westmoreland’s Adjusted EBITDA increased to $24.2 million in Q3 2011 from $22.8 million in Q3 2010.