Westmoreland Reports Third Quarter 2016 Results; Updates Full-Year Guidance

ENGLEWOOD, Colo., Nov. 01, 2016 (GLOBE NEWSWIRE) -- Westmoreland Coal Company (Nasdaq:WLB) today reported financial results for the third quarter and updated its 2016 guidance.

Third Quarter Highlights
  • Revenues of $370.7 million from 13.9 million tons sold
  • Net loss applicable to common shareholders of $8.5 million, or $0.46 per share
  • Adjusted EBITDA of $71.2 million, a new quarterly record

Nine Month Highlights
  • Revenues of $1,081.7 million from 39.7 million tons sold
  • Net loss applicable to common shareholders of $3.3 million, or $0.18 per share, including a sizable tax benefit
  • Adjusted EBITDA of $179.0 million
  • Cash flow provided by operating activities of $84.2 million
  • Free cash flow of $56.3 million

"We delivered record high quarterly adjusted EBITDA. These results were driven by solid demand and demonstrate the benefits of our diverse portfolio, ability to execute, and the strength of our business model. Similar to other quarters, we generated impressive free cash flow as a result of our focus on cost containment, cash flow initiatives, and capital spending management," said Westmoreland Chief Executive Officer, Kevin Paprzycki. "During the quarter, we also acted quickly to better position Coal Valley when Newcastle pricing increased. We hedged 100% of the 2017 Coal Valley production at prices that will result in breakeven cash flow. This compares very favorably to the projected $10 million cash drag in 2016. We are aggressively evaluating all alternatives for these operations including potential monetization."

Paprzycki commented on the outlook, "We have executed well this year and are on track to set another adjusted EBITDA record in the fourth quarter. This gives us confidence to tighten our guidance ranges so we now expect to produce full year 2016 adjusted EBITDA in the range of $255 million to $265 million and free cash flow in the range of $75 million to $85 million."

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