Englewood, CO – July 25, 2014 – Westmoreland Coal Company (NasdaqGM:WLB) today announced results of the second quarter ended June 30, 2014, which includes the first results of our Canadian coal mining operations acquired on April 28, 2014.
Revenues for the quarter were $288.0 million versus $162.5 million in the same quarter in 2013. Adjusted EBITDA for the quarter was $39.6 million. In recent guidance, the company had projected an adjusted EBITDA of $37 million. Adjusted EBITDA for the second quarter of 2013 was $32.0 million.
Net loss in the quarter was $63.4 million and included charges of $20.2 million related to acquisition costs and cost of sales related to inventory written up to fair value in the acquisition, $12.6 million of extinguishment of debt, $7.5 million of restructuring charges, $5.0 million of duplicative and incremental interest incurred before the close of the transaction, and $3.4 million of non-cash derivative based losses.
“As previously announced, we are ahead of schedule in transitioning the Canadian operations onto Westmoreland’s platform,” said Keith E. Alessi, Westmoreland’s CEO. “We have moved swiftly to streamline the organization, both in the United States and in Canada, and have been integrating and standardizing administrative functions. Operationally, we have begun the process of optimizing equipment utilization and we have reduced capital spending in the Canadian operation to reflect the Westmoreland philosophy of extending useful lives of equipment through superior maintenance.”
“The adjusted EBITDA for the quarter is reflective of our progress and we are pleased with the results in comparison with 2013, especially when considering that the current quarter had ROVA’s annual maintenance outage and additionally did not benefit from the Indian Coal Tax Credit.
“Many of the large, one time, accounting charges recorded during the quarter related to the refinancing of debt concurrent with the acquisition, fees, severance costs related to the streamlining initiatives, and non-cash derivative based losses.
“We are reaffirming our recently increased guidance for the full year of an adjusted EBITDA range of $172 million to $190 million.
“I am especially grateful for the efforts of all of our associates, on both sides of the border, who have embraced the challenge of bringing the two operations together. They have done so with enthusiasm, professionalism and a sense of urgency while maintaining an exemplary safety record. I could not be more proud of them and look forward to continuing to work with them as we further drive efficiencies.”