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Westmoreland Coal Company (NasdaqGM:WLB) today reported its first quarter results for 2013.
Highlights:
- Q1 2013 revenues grew 9.6% to $161.4 million compared with $147.2 million in Q1 2012
- Adjusted EBITDA decreased 5.9% from $27.3 million to $25.7 million
- Q1 2013 net loss applicable to common shareholders increased to $2.7 million from income of $0.5 million in Q1 2012
- Cash and cash equivalents increased $9.3 million to $40.9 million during the first quarter of 2013
- Net leverage ratio decreased from 3.0 to 2.91
- 2013 guidance for production volume, Adjusted EBITDA, and capital spending reiterated
“We consider the first quarter to be very good considering the fact that it included an outage at the Coyote plant, our Beulah Mine’s primary customer, and an outage at our ROVA plant. The combined impact of these two events on the quarter was almost $6.0 million of EBITDA.” said Robert P. King, Westmoreland’s Chief Executive Officer.
“Because the ROVA outage was planned and we were aware that Coyote’s unplanned outage which occurred
in November 2012 would extend into the first quarter, the impacts of both of these outages on the first quarter were anticipated and in line with our expectations. With both of these events behind us, we expect the second quarter to improve significantly and be stronger than last year. We remain pleased with the performance of our business and still expect 2013 adjusted EBITDA to fall in the range between $112 and $120 million, consistent with the guidance provided in our March 1, 2013 release.”
“In the first quarter, Westmoreland continued to have overall reportable and lost time incidence rates lower than the national average for surface mines. Two of our mines experienced incidents during the quarter that resulted in our overall reportable and lost time incident rates being high compared to previous performance. We have refocused our safety training and awareness efforts across the organization to improve our safety performance. We are pleased that four of our mines (Jewett, Rosebud, Absaloka and Savage) worked without a reportable injury for the quarter.”