Westmoreland Coal Company (NYSE Amex:WLB) reports its third quarter 2010 results.
- Total revenues were $124.1 million for the quarter, 10.4% higher than revenues for the same period in the prior fiscal year. Year to date revenues increased 11.6% over 2009, from $339.0 to $378.2 million.
- Third quarter 2010 net income applicable to common shareholders was $2.5 million ($0.23 per basic and diluted share), compared to a net loss applicable to common shareholders in the third quarter 2009 of $7.8 million ($0.77 per basic and diluted share), an increase of 132.1%. Year to date 2010 net income was $0.2 million, compared to a year to date net loss of $20.7 million in 2009 (an improvement of $2.12 per basic and diluted share).
- Operating income increased $17.6 million (180.4%) during the quarter from a loss of $9.8 million to an operating profit of $7.8 million. Year to date operating income increased $34.9 million (171.0%) from a loss of $20.4 million to an operating profit of $14.5 million.
- The company recorded a net expense of $0.4 million during the third quarter 2010 related to the valuation of the conversion feature in its convertible debt. In the third quarter of 2009, the Company recorded income of $1.2 million on the conversion feature. The company recorded a net expense of $0.9 million during the first nine months of 2010 related to the conversion feature valuation, compared to $5.2 million of income on the conversion feature in 2009.
- Westmoreland continued its strong safety performance into the third quarter of 2010 with reportable and lost time incident rates better than the national average for surface operations.
“I am pleased to announce that the third quarter was our second straight profitable quarter and third straight quarter where operating income increased over the prior year quarter” said Keith E. Alessi, Westmoreland’s President and CEO. “All of our mining operations increased their financial performance over the second quarter due to productivity improvements and cost control. Our ROVA power facilities also turned in a strong performance for the quarter. The results generated by our operations, combined with cost reductions in heritage costs, contributed to a $2.5 million net income for the third quarter and a positive net income for the year to date. During the quarter we successfully performed a major upgrade to our computer systems, on time and under budget. This combined with other initiatives performed earlier in the year, has resulted in all of our mining operations being on a common and up-to-date information technology platform. During the quarter, two of our mines received safety awards from the state of Montana and after quarter end we were pleased that our ROVA power facilities were also recognized for their outstanding safety record. We are committed to running a safe and efficient business.”