Westmoreland Coal Company (NasdaqGM:WLB) today reported its second quarter results for 2012.
- Adjusted EBITDA increased $0.4 million during Q2 2012 to $14.6 million as compared to $14.2 million in Q2 2011. Year to date 2012 Adjusted EBITDA was $41.9 million, an 11.7 % increase over 2011 year to date Adjusted EBITDA of $37.5 million.
- Total revenues were $132.8 million for Q2 2012 compared to $112.1 million in Q2 2011, an increase of 18.5%.
- Net loss applicable to common shareholders of $12.4 million ($0.89 per basic and diluted share) for Q2 2012 compared to a Q2 2011 net loss of $7.7 million ($0.59 per basic and diluted share). Year to date net loss for 2012 was $11.9 million compared to a year to date net loss for 2011 of $25.7 million. The 2011 net loss includes $20.2 million of charges related to the refinancing of debt.
- During the second quarter, Westmoreland announced that it had improved its liquidity position by securing a new revolving credit facility and that it had amended its Note Purchase and Credit Agreement at its WML subsidiary.
- During the second quarter, Westmoreland announced it had leased 56.4 million tons of private coal adjacent to its Rosebud Mine in Colstrip, Montana. Westmoreland controls an estimated 486 million tons of proven and probable coal reserves across all of its operations as of June 30th, plus an additional 214.4 million of indicated coal reserves.
- Westmoreland continued its strong safety performance achieving reportable and lost time incident rates approximately 83.9% and 63.5%, respectively, of the national averages for surface operations through the second quarter of 2012.
“We consider this to be a very solid quarter when considering the fact that the current year quarter included major scheduled outages at both our Beulah Mine’s primary customer and at our ROVA facility. The difference in Adjusted EBITDA for these two facilities was $6.9 million less in the second quarter of 2012 than in 2011 when these facilities were fully operational.” said Keith E. Alessi, Westmoreland’s Chief Executive Officer. “As we have previously stated, the timing of maintenance outages can significantly impact comparability of quarters and we had expected that our second quarter would be our weakest quarter of the year. In the face of weak demand and a highly competitive market, we remain pleased with the performance of our business, including the performance from our recently acquired Kemmerer Mine.”
“As a result of the purchase price accounting for the Kemmerer transaction, we increased previously reported first quarter 2012 Adjusted EBITDA by $1.3 million. This is reflected in our year to date numbers.”
“At a time when many coal companies find themselves struggling with liquidity concerns, our business model again proved itself as we have generated positive free cash flow for the quarter and the year and find ourselves in a highly liquid position. Unlike some others in the industry who see weak demand in the 3rd and 4th quarters, we continue to expect those quarters to see our historical pick up in production and sales in line with our expectations.”