View or download this news release as a PDF (632.3K)
Englewood, CO – February 21, 2014 – Westmoreland Coal Company (NasdaqGM:WLB) today reported its results for fiscal year 2013.
Highlights:
- 2013 Adjusted EBITDA grew 10.3% to a record $116.3 million, which includes a $2.9 million charge for costs associated with the previously announced Sherritt acquisition.
- $29.5 million of cash generated in 2013, enabling an ending cash position of $61.1 million.
- 2013 net loss applicable to common shareholders decreased $2.5 million from 2012 to $6.1 million. The 2013 loss included a charge of $5.1 million associated with restructuring of the ROVA power supply contracts and $2.9 million of Sherritt acquisition costs.
- Revenues grew 12.4% in 2013 to a record $674.7 million.
- Westmoreland continued its strong safety performance achieving reportable and lost time incident rates approximately 78.1% and 56.4%, respectively, of the national averages for surface operations for the year ended December 31, 2013.
“Our record adjusted EBITDA and strong operating cash flows set the stage for the Sherritt transaction which we announced in December,” said Keith E. Alessi, Executive Chairman.
“As previously reported, we successfully closed on the financing for that transaction in January. The funds are in escrow awaiting regulatory approval in Canada, which we expect later in the first quarter. We look forward to welcoming Sherritt’s coal operation employees to the Westmoreland family and we are also looking forward to working with our new customers, business partners and communities in Canada.
We decreased our shareholder’s deficit by over $98 million during 2013. Our years of cost control efforts resulted in favorable spend experience, which along with interest rate increases, drove down our long-term heritage medical and pension liabilities. We continue to focus on further reducing these liabilities.
The restructuring of the ROVA power supply contracts represented the successful completion of an important strategic initiative. The $5.1 million charge resulting from this accrual, along with the $2.9 million of Sherritt acquisition costs we recorded, drove our $6.1 million net loss for the year,” said Alessi.
For 2014, Alessi noted, “We are expecting production volume of 25 to 28 million tons. Income from the expired Indian Coal Tax Credit has been removed from the Adjusted EBITDA projection of $112-$120 million for the current U.S. business and will be incorporated if the credit is renewed. We will provide guidance on the soon-to-be-acquired Canadian business upon closing of the transaction, expected late in Q1.”
Robert P. King, Westmoreland’s President and Chief Executive Officer added, “Our record results for 2013 were primarily driven by strong power demand, low hydro generation and favorable weather conditions that allowed our customers to dispatch at high rates. We are also very pleased that the Kemmerer Mine, which was acquired in January 2012, continued to perform beyond our original expectations.