EX-99.1 3 exh99-1_2017q1xearningsrel.htm EXHIBIT 99.1 Exhibit
EXHIBIT 99.1

wccreleasea03.jpg

 News Release
 
 
Westmoreland Reports First Quarter 2017 Results; Reiterates Full-Year Guidance


Englewood, CO – May 15, 2017 - Westmoreland Coal Company (Nasdaq:WLB) today reported financial results for the first quarter 2017 and reiterated its 2017 guidance.

First Quarter Highlights

•
Revenues of $339.7 million from 12.4 million tons sold
•
Net loss applicable to common shareholders of $36.8 million, or $1.98 per share
•
Adjusted EBITDA of $88.2 million, including approximately $47 million accelerated from the Capital Power payment
•
Cash flow used in operating activities of $0.7 million
•
Free cash flow of $42.6 million, which also includes the accelerated Capital Power payment

“We remain on track to achieve our full year guidance, despite a challenging first quarter," said Westmoreland Chief Executive Officer, Kevin Paprzycki. "Our adjusted EBITDA and cash flow were impacted during the quarter by low weather-related demand. We also performed dragline repairs and worked through some challenging parts of our mine plan. Our operators took proactive steps to minimize the impact of these headwinds, and I'm pleased that we now have these factors behind us. This quarter’s results demonstrate the resiliency of our model in that, despite an unusual set of challenges, we produced positive free cash flow.”

Safety

Westmoreland's safety metrics are below.
 
Three Months Ended March 31, 2017
 
Reportable Rate
 
Lost Time Rate
U.S. Surface Operations
1.82
 
1.51
U.S. National Surface Average
1.35
 
0.82
Percentage
135%
 
184%
 
 
 
 
U.S. Underground Operations
1.64
 
0.82
U.S. National Underground Average
4.95
 
3.56
Percentage
33%
 
23%
 
 
 
 
Canadian Operations
0.69
 
0.34

Consolidated and Segment Results

Consolidated adjusted EBITDA for the first quarter of 2017 was $88.2 million. As expected, revenue in the Coal-US segment was lower due to the expiration of the Jewett and Beulah coal supply contracts. Unfavorable weather also impacted all operating segments, particularly Coal -WMLP, where mild weather in Ohio added to the existing softness in price and demand. Heavy snowfall, followed by heavy rain, at the Kemmerer mine, lowered first quarter deliveries and increased costs. Operational challenges, including dragline repairs in Canada and temporary mining in a lower-yield area of certain mines in both the Coal - Canada and Coal - WMLP segments, drove lower sales and increased costs. Offsetting these declines was the effect of the early repayment of loan and lease receivables by Capital Power, of which approximately $47 million represented accelerated collections in the first quarter of 2017. Adjusted EBITDA also benefited from an additional month of San Juan operations compared with the previous year.


1

EXHIBIT 99.1

Cash Flow and Liquidity

Westmoreland’s free cash flow through March 31, 2017, was $42.6 million, including the benefit from the early repayment of loan and lease receivables. Free cash flow is the net of cash flow used in operations of $0.7 million, less capital expenditures of $7.2 million, plus net cash collected for the loan and lease receivables of $50.5 million. Included in cash flow used in operations were cash uses for interest expense of $32.0 million, for asset retirement obligations of $10.7 million, and negative working capital of $3.2 million.

At March 31, 2017, cash and cash equivalents on hand totaled $75.4 million, a $15.4 million increase from year end. The increase was comprised of free cash flow generation of $42.6 million; net cash debt reductions including capital lease payments of $22.4 million; a $3.6 million reserve acquisition and other non-operating cash uses of $1.2 million.

Gross debt plus capital lease obligations at quarter end totaled $1.1 billion, of which $324.4 million resides at Westmoreland Resource Partners, LP and $802.7 million resides at Westmoreland Coal Company. There was $33.4 million available to draw, net of letters of credit, on Westmoreland's revolving credit facility. An additional $14.7 million was available to Westmoreland Resource Partners through its revolving credit facility, which is not available to the parent for borrowings. No amounts had been drawn on either revolving credit facility as of March 31, 2017.

Full-Year Guidance

Westmoreland reiterated its 2017 guidance, which includes the impact of the early repayment of loan and lease receivables related to the Genesee mine, as follows:
Guidance Summary
2017
Coal tons sold
40 - 50 million tons
Adjusted EBITDA
$280 - $310 million
Free cash flow
$115 - $140 million
Capital expenditures
$40 - $50 million
Cash interest
approximately $95 million

Notes

Westmoreland presents certain non-GAAP financial measures, including adjusted EBITDA and free cash flow, that management believes provide meaningful supplemental information and provide meaningful comparability to prior periods. Reconciliations of non-GAAP to GAAP measures are presented in the accompanying tables.

Conference Call

Westmoreland Coal Company will host its earnings conference call on May 15, 2017, at 10:00 a.m. Eastern Time.

Participants may join the call using the numbers below:

Toll Free:     1-844-WCC-COAL (844-922-2625)
International:     1-201-689-8584
Webcast        www.westmoreland.com/investors/investor-webcasts

A replay of the teleconference will be available until June 5, 2017 and can be accessed using the information below:

Replay:         1-877-481-4010 or 1-919-882-2331
Replay ID:     10368
Webcast        www.westmoreland.com/investors/investor-webcasts

About Westmoreland Coal Company

Westmoreland Coal Company is the oldest independent coal company in the United States. Westmoreland’s coal operations include surface coal mines in the United States and Canada, underground coal mines in Ohio and New Mexico, a char production facility, and a 50% interest in an activated carbon plant. Westmoreland also owns the general partner of and a majority interest in Westmoreland Resource Partners, LP, a publicly-traded coal master

2

EXHIBIT 99.1

limited partnership (NYSE:WMLP). Its power operations include ownership of the two-unit ROVA coal-fired power plant in North Carolina. For more information, visit www.westmoreland.com.

For further information please contact:

Gary Kohn, Chief Financial Officer
1-720-354-4467
gkohn@westmoreland.com

Cautionary Note Regarding Forward-Looking Statements

Forward-looking statements are based on Westmoreland’s current expectations and assumptions regarding its business, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Actual results may differ materially from those contemplated by the forward-looking statements. Westmoreland cautions you against relying on any of these forward-looking statements. They are statements neither of historical fact nor guarantees or assurances of future performance. Important factors that could cause actual results to differ materially from those in the forward-looking statements include political, economic, business, competitive, market, weather and regulatory conditions.

Any forward-looking statements made by Westmoreland in this news release speak only as of the date on which it was made. Westmoreland undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future developments or otherwise, except as may be required by law.







3


Westmoreland Coal Company and Subsidiaries
Summary Consolidated and Operating Segment Data (Unaudited)

 
Three Months Ended March 31,
 
 
 
 
 
Increase / (Decrease)
 
2017
 
2016
 
$
 
%
 
(In thousands, except tons sold data)
Westmoreland Consolidated
 
 
 
 
 
 
 
Revenues
$
339,737

 
$
355,854

 
$
(16,117
)
 
(4.5
)%
Operating (loss) income
(11,088
)
 
7,619

 
(18,707
)
 
*

Adjusted EBITDA
88,217

 
63,651

 
24,566

 
38.6
 %
Tons sold—millions of equivalent tons
12.4

 
13.8

 
(1.4
)
 
(10.1
)%
 
 
 
 
 
 
 
 
Coal - U.S.
 
 
 
 
 
 
 
Revenues
$
137,368

 
$
155,990

 
$
(18,622
)
 
(11.9
)%
Operating income
4,336

 
7,667

 
(3,331
)
 
(43.4
)%
Adjusted EBITDA
27,469

 
30,350

 
(2,881
)
 
(9.5
)%
Tons sold—millions of equivalent tons
4.7

 
6.0

 
(1.3
)
 
(21.7
)%
 
 
 
 
 
 
 
 
Coal - Canada
 
 
 
 
 
 
 
Revenues
$
109,015

 
$
93,756

 
$
15,259

 
16.3
 %
Operating (loss) income
(7,104
)
 
12,103

 
(19,207
)
 
*

Adjusted EBITDA
59,235

 
23,325

 
35,910

 
154.0
 %
Tons sold—millions of equivalent tons
6.0

 
5.8

 
0.2

 
3.4
 %
 
 
 
 
 
 
 
 
Coal - WMLP
 
 
 
 
 
 
 
Revenues
$
74,805

 
$
92,481

 
$
(17,676
)
 
(19.1
)%
Operating income
1,282

 
809

 
473

 
58.5
 %
Adjusted EBITDA
12,869

 
19,280

 
(6,411
)
 
(33.3
)%
Tons sold—millions of equivalent tons
1.7

 
2.0

 
(0.3
)
 
(15.0
)%
 
 
 
 
 
 
 
 
Power
 
 
 
 
 
 
 
Revenues
$
21,227

 
$
21,995

 
$
(768
)
 
(3.5
)%
Operating loss
(753
)
 
(5,801
)
 
5,048

 
87.0
 %
Adjusted EBITDA
(3,373
)
 
(3,348
)
 
(25
)
 
(0.7
)%
____________________
* Not meaningful





4


Westmoreland Coal Company and Subsidiaries
Consolidated Statements of Operations (Unaudited)

 
Three Months Ended March 31,
 
2017
 
2016
 
(In thousands)
Revenues
$
339,737

 
$
355,854

Cost, expenses and other:
 
 
 
Cost of sales
284,604

 
281,125

Depreciation, depletion and amortization
36,567

 
37,015

Selling and administrative
30,426

 
27,399

Heritage health benefit expenses
3,298

 
3,015

(Gain) loss on sale/disposal of assets
(166
)
 
336

Derivative (gain) loss
(2,384
)
 
2,600

Income from equity affiliates
(1,520
)
 
(1,293
)
Other operating gain
—

 
(1,962
)
 
350,825

 
348,235

Operating (loss) income
(11,088
)
 
7,619

Other (expense) income:
 
 
 
Interest expense
(29,261
)
 
(28,927
)
Interest income
893

 
1,791

Loss on foreign exchange
(467
)
 
(1,387
)
Other income (loss)
2,158

 
(122
)
 
(26,677
)
 
(28,645
)
Loss before income taxes
(37,765
)
 
(21,026
)
Income tax benefit
(465
)
 
(47,935
)
Net (loss) income
(37,300
)
 
26,909

Less net loss attributable to noncontrolling interest
(499
)
 
(498
)
Net (loss) income applicable to common shareholders
$
(36,801
)
 
$
27,407

Net (loss) income per share applicable to common shareholders:
 
 
 
Basic and diluted
$
(1.98
)
 
$
1.50

Weighted average number of common shares outstanding:
 
 
 
Basic
18,572

 
18,262

Diluted
18,572

 
18,269
















5


Westmoreland Coal Company and Subsidiaries
Consolidated Balance Sheets (Unaudited)
 
March 31, 2017
 
December 31, 2016
 
(In thousands)
Assets
 
 
 
Current assets:
 
 
 
Cash and cash equivalents
$
75,438

 
$
60,082

Receivables:
 
 
 
Trade
131,124

 
140,731

Loan and lease receivables
—

 
5,867

Other
11,053

 
13,261

Total receivables
142,177

 
159,859

Inventories
120,298

 
125,515

Other current assets
24,836

 
32,258

Total current assets
362,749

 
377,714

Land, mineral rights, property, plant and equipment
1,635,151

 
1,617,938

Less accumulated depreciation, depletion and amortization
818,032

 
782,417

Net property, plant and equipment
817,119

 
835,521

Loan and lease receivables, less current portion
—

 
44,474

Advanced coal royalties
18,837

 
18,722

Reclamation deposits
75,511

 
74,362

Restricted investments and bond collateral
145,642

 
144,913

Investment in joint venture
26,992

 
26,951

Other assets
63,966

 
62,252

Total Assets
$
1,510,816

 
$
1,584,909

Liabilities and Shareholders’ Deficit
 
 
 
Current liabilities:
 
 
 
Current installments of long-term debt
$
72,710

 
$
86,272

Accounts payable and accrued expenses:
 
 
 
Trade and other accrued liabilities
117,280

 
142,233

Interest payable
14,679

 
22,458

Production taxes
47,081

 
44,995

Postretirement medical benefits
14,892

 
14,892

Deferred revenue
19,984

 
15,253

Asset retirement obligations
31,362

 
32,207

Other current liabilities
20,121

 
20,964

Total current liabilities
338,109

 
379,274

Long-term debt, less current installments
1,019,432

 
1,022,794

Postretirement medical benefits, less current portion
309,217

 
308,709

Pension and SERP obligations, less current portion
43,819

 
43,982

Deferred revenue, less current portion
13,524

 
16,251

Asset retirement obligations, less current portion
457,166

 
451,834

Other liabilities
52,171

 
52,182

Total liabilities
2,233,438

 
2,275,026

Shareholders’ deficit:
 
 
 
Common stock of $.01 par value: Authorized 30,000,000 shares; Issued and outstanding 18,572,233 at March 31, 2017 and 18,570,642 at December 31, 2016
186

 
186

Other paid-in capital
249,441

 
248,143

Accumulated other comprehensive loss
(175,037
)
 
(179,072
)
Accumulated deficit
(794,536
)
 
(757,367
)
Total shareholders’ deficit
(719,946
)
 
(688,110
)
Noncontrolling interests in consolidated subsidiaries
(2,676
)
 
(2,007
)
Total deficit
(722,622
)
 
(690,117
)
Total Liabilities and Shareholders' Deficit
$
1,510,816

 
$
1,584,909



6


Westmoreland Coal Company and Subsidiaries
Consolidated Statements of Cash Flows (Unaudited)    

 
Three Months Ended March 31,
 
2017
 
2016
 
(In thousands)
Cash flows from operating activities:
 
 
 
Net (loss) income
$
(37,300
)
 
$
26,909

Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities:
 
 
 
Depreciation, depletion and amortization
36,567

 
37,015

Accretion of asset retirement obligation
11,295

 
7,007

Share-based compensation
1,347

 
2,580

Non-cash interest expense
2,296

 
2,269

Amortization of deferred financing costs
2,626

 
3,214

(Gain) loss on derivative instruments
(2,384
)
 
2,600

Loss on foreign exchange
467

 
1,387

Income from equity affiliates
(1,520
)
 
(1,293
)
Distributions from equity affiliates
1,671

 
1,451

Deferred income tax benefit
(465
)
 
(47,973
)
Other
(1,474
)
 
(2,926
)
Changes in operating assets and liabilities:
 
 
 
Receivables
12,250

 
(10,052
)
Inventories
5,156

 
(7,323
)
Accounts payable and accrued expenses
(21,905
)
 
7,698

Interest payable
(7,787
)
 
(5,600
)
Deferred revenue
2,005

 
3,389

Other assets and liabilities
7,104

 
(18,247
)
Asset retirement obligations
(10,659
)
 
18,449

Net cash (used in) provided by operating activities
(710
)
 
20,554

Cash flows from investing activities:
 
 
 
Additions to property, plant and equipment
(7,210
)
 
(5,548
)
Change in restricted investments
(1,171
)
 
(3,172
)
Cash payments related to acquisitions
(3,580
)
 
(126,865
)
Proceeds from sales of assets
466

 
1,626

Receipts from loan and lease receivables
50,488

 
1,620

Payments related to loan and lease receivables
—

 
(312
)
Other
(293
)
 
79

Net cash provided by (used in) investing activities
38,700

 
(132,572
)
Cash flows from financing activities:
 
 
 
Borrowings from long-term debt, net of debt discount
—

 
121,225

Repayments of long-term debt
(22,368
)
 
(9,018
)
Borrowings on revolving lines of credit
123,200

 
77,500

Repayments on revolving lines of credit
(123,200
)
 
(79,500
)
Debt issuance costs and other refinancing costs
—

 
(2,927
)
Other
(178
)
 
(262
)
Net cash (used in) provided by financing activities
(22,546
)
 
107,018

Effect of exchange rate changes on cash
(88
)
 
(182
)
Net increase (decrease) in cash and cash equivalents
15,356

 
(5,182
)
Cash and cash equivalents, beginning of period
60,082

 
22,936

Cash and cash equivalents, end of period
$
75,438

 
$
17,754

Supplemental disclosures of cash flow information:
 
 
 
Cash paid for interest
$
31,951

 
$
30,397



7


Westmoreland Coal Company and Subsidiaries
Non-GAAP Reconciliations (Unaudited)

The tables below show how the Company calculates and reconciles to the most directly comparable GAAP financial measures EBITDA, Adjusted EBITDA (including a breakdown by segment), and free cash flow.

EBITDA, Adjusted EBITDA, and free cash flow are supplemental measures of financial performance that are not required by, or presented in accordance with, GAAP. EBITDA, Adjusted EBITDA, and free cash flow are included in this news release because they are key metrics used by management to assess Westmoreland’s operating performance and as a basis for strategic planning and forecasting. Westmoreland believes that EBITDA, Adjusted EBITDA, and free cash flow are useful to an investor in evaluating the Company’s operating performance because these measures:
•
are used widely by investors to measure a company’s operating performance without regard to items excluded from the calculation of such terms, which can vary substantially from company to company depending upon accounting methods and book value of assets, capital structure and the method by which assets were acquired, among other factors;
•
are used by rating agencies, lenders and other parties to evaluate creditworthiness; and
•
help investors to more meaningfully evaluate and compare the results of Westmoreland’s operations from period to period by removing the effect of the Company’s capital structure and asset base from the Company’s operating results.

Neither EBITDA, Adjusted EBITDA, nor free cash flow are measures calculated in accordance with GAAP. The items excluded from EBITDA, Adjusted EBITDA, and free cash flow are significant in assessing Westmoreland’s operating results. EBITDA, Adjusted EBITDA, and free cash flow have limitations as analytical tools, and should not be considered in isolation from, or as a substitute for, analysis of the Company’s results as reported under GAAP.
Other companies in Westmoreland’s industry and in other industries may calculate EBITDA, Adjusted EBITDA, and free cash flow differently from the way that Westmoreland does, limiting their usefulness as comparative measures. Because of these limitations, EBITDA, Adjusted EBITDA, and free cash flow should not be considered as measures of discretionary cash available to the Company to invest in the growth of its business. Westmoreland compensates for these limitations by relying primarily on its GAAP results and using EBITDA, Adjusted EBITDA, and free cash flow only as supplemental data.

EBITDA and Adjusted EBITDA

EBITDA (earnings before interest expense, interest income, income taxes, depreciation, depletion, amortization and accretion expense) and Adjusted EBITDA are non-GAAP measures that do not reflect the Company’s cash expenditures, or future requirements for capital and major maintenance expenditures or contractual commitments; do not reflect income tax expenses or the cash requirements necessary to pay income taxes; do not reflect changes in, or cash requirements for, the Company’s working capital needs; and do not reflect the significant interest expense, or the cash requirements necessary to service interest or principal payments, on certain of the Company’s debt obligations. In addition, although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future and EBITDA and Adjusted EBITDA do not reflect any cash requirements for such replacements. Westmoreland considers Adjusted EBITDA to be useful because it reflects operating performance before the effects of certain non-cash items and other items that it believes are not indicative of core operations. The Company uses Adjusted EBITDA to assess operating performance.



8


 
Three Months Ended March 31,
 
2017
 
2016
 
(In thousands)
Adjusted EBITDA by Segment
 
 
 
Coal - U.S.
$
27,469

 
$
30,350

Coal - Canada
59,235

 
23,325

Coal - WMLP
12,869

 
19,280

Power
(3,373
)
 
(3,348
)
Heritage
(3,670
)
 
(3,481
)
Corporate
(4,313
)
 
(2,475
)
Total
$
88,217

 
$
63,651

 
Three Months Ended March 31,
 
2017
 
2016
 
(In thousands)
Reconciliation of Net (Loss) Income to Adjusted EBITDA
 
 
 
Net (loss) income
$
(37,300
)
 
$
26,909

Income tax benefit
(465
)
 
(47,935
)
Interest income
(893
)
 
(1,791
)
Interest expense
29,261

 
28,927

Depreciation, depletion and amortization
36,567

 
37,015

Accretion of asset retirement obligation
11,295

 
9,618

Amortization of intangible assets and liabilities
(267
)
 
(167
)
EBITDA
38,198

 
52,576

Loss on foreign exchange
467

 
1,387

Acquisition-related costs
—

 
435

Customer payments received under loan and lease receivables (1)
50,489

 
2,660

Derivative (gain) loss
(2,384
)
 
2,600

Loss on sale/disposal of assets and other adjustments
100

 
1,413

Share-based compensation
1,347

 
2,580

Adjusted EBITDA
$
88,217

 
$
63,651

___________________
(1) 
Represents a return of and on capital. These amounts are not included in operating income or operating cash flows as the capital outlays are treated as loan and lease receivables, but are included within Adjusted EBITDA so that the cash received is treated consistently with all other contracts that do not result in loan and lease receivable accounting. On March 24, 2017, Westmoreland received $52.5 million from its customer at the Genesee mine, representing an accelerated repayment of all outstanding loan and lease receivables. While Westmoreland will continue to provide contract mining services at the Genesee mine, all future capital expenditures at the Genesee mine will be funded by the customer. Accordingly, there will be no additional payments from the customer at the Genesee mine in the form of loan and lease repayments, but Westmoreland will earn a management fee pursuant a contract mining arrangement.



9


Free Cash Flow

Free cash flow represents net cash provided by (used in) operating activities less additions to property, plant and equipment (“CAPEX” or “capital expenditures”) plus net customer payments received under loan and lease receivables. Free cash flow is a non-GAAP measure and should not be considered as an alternative to cash and cash equivalents, cash flow from operations, cash flow from investing activities, cash flow from financing activities, net income (loss) or any other measure of performance presented in accordance with GAAP. Free cash flow is intended to represent cash flow available to satisfy our debts, after giving consideration to those expenses required to maintain our assets and infrastructure. Accordingly, although free cash flow is not a measure of performance calculated in accordance with GAAP, the Company believes free cash flow is useful to investors because it allows analysts and others in the industry to assess performance, liquidity and ability to satisfy debt requirements.
Reconciliation of Net Cash (Used in) Provided by Operating Activities to Free Cash Flow
Three Months Ended March 31,
 
2017
 
2016
 
(In thousands)
Net cash (used in) provided by operating activities
$
(710
)
 
$
20,554

Less cash paid for property, plant and equipment
(7,210
)
 
(5,548
)
Net customer payments received under loan and lease receivables
50,488

 
1,308

Free cash flow
$
42,568

 
$
16,314



Reconciliations of EBITDA and Adjusted EBITDA for Restated Periods

In the Company's Form 10-K for the year ended December 31, 2016, Westmoreland restated certain financial information, including its consolidated statements of operations for the year ended December 31, 2015, and its unaudited quarterly financial information for 2016 and 2015. Presented below are reconciliations of EBITDA and Adjusted EBITDA for each of the quarters in the years ended December 31, 2016 and 2015, as restated, and are provided for reference.

EBITDA and Adjusted EBITDA are non-GAAP measures. See "EBITDA and Adjusted EBITDA" above for further explanation of these measures.

 
Three Months Ended
 
March 31, 2016
 
June 30, 2016
 
September 30, 2016
 
December 31, 2016
 
(In thousands)
Adjusted EBITDA by Segment
 
 
 
 
 
 
 
Coal - U.S.
$
30,350

 
$
20,848

 
$
38,020

 
$
37,347

Coal - Canada
23,325

 
14,342

 
18,562

 
32,181

Coal - WMLP
19,280

 
16,303

 
22,686

 
21,044

Power
(3,348
)
 
614

 
507

 
5,854

Heritage
(3,481
)
 
(3,518
)
 
(3,326
)
 
(3,083
)
Corporate
(2,475
)
 
(3,033
)
 
(2,916
)
 
(4,228
)
Total
$
63,651

 
$
45,556

 
$
73,533

 
$
89,115



10


 
Three Months Ended
 
March 31, 2016
 
June 30, 2016
 
September 30, 2016
 
December 31, 2016
 
(In thousands)
Reconciliation of Net Income (Loss) to Adjusted EBITDA
 
 
 
 
 
 
 
Net income (loss)
$
26,909

 
$
(29,397
)
 
$
(18,607
)
 
$
(7,777
)
Income tax expense (benefit)
(47,935
)
 
(100
)
 
(1,625
)
 
1,601

Interest income
(1,791
)
 
(2,356
)
 
(1,374
)
 
(1,914
)
Interest expense
28,927

 
30,860

 
30,882

 
31,150

Depreciation, depletion and amortization
37,015

 
35,223

 
40,859

 
72,170

Accretion of ARO
9,618

 
10,332

 
10,280

 
10,193

Amortization of intangible assets and liabilities
(167
)
 
(260
)
 
(225
)
 
(158
)
EBITDA
52,576

 
44,302

 
60,190

 
105,265

(Gain) loss on foreign exchange
1,387

 
364

 
(220
)
 
(816
)
Acquisition-related costs
435

 
133

 
—

 
—

Customer payments received under loan and lease receivables
2,660

 
2,727

 
2,582

 
5,095

Derivative loss (gain)
2,600

 
(5,878
)
 
5,442

 
(26,219
)
Loss on sale/disposal of assets and other adjustments
1,413

 
1,954

 
4,148

 
4,131

Share-based compensation
2,580

 
1,954

 
1,391

 
1,659

Adjusted EBITDA
$
63,651

 
$
45,556

 
$
73,533

 
$
89,115



 
Three Months Ended
 
March 31, 2015
 
June 30, 2015
 
September 30, 2015
 
December 31, 2015
 
(In thousands)
Adjusted EBITDA by Segment
 
 
 
 
 
 
 
Coal - U.S.
$
23,121

 
$
17,208

 
$
16,884

 
$
19,922

Coal - Canada
23,702

 
32,702

 
21,439

 
27,901

Coal - WMLP
19,005

 
15,175

 
15,648

 
16,306

Power
(2,613
)
 
(614
)
 
75

 
3,895

Heritage
(3,348
)
 
(2,401
)
 
(2,950
)
 
(6,897
)
Corporate
(2,202
)
 
(3,980
)
 
(3,224
)
 
(1,922
)
Total
$
57,665

 
$
58,090

 
$
47,872

 
$
59,205















11


 
Three Months Ended
 
March 31, 2015
 
June 30, 2015
 
September 30, 2015
 
December 31, 2015
 
(In thousands)
Reconciliation of Net Loss to Adjusted EBITDA
 
 
 
 
 
 
 
Net loss
$
(16,024
)
 
$
(39,415
)
 
$
(52,875
)
 
$
(110,781
)
Income tax expense (benefit)
2,040

 
7,556

 
4,362

 
(33,848
)
Interest income
(2,140
)
 
(2,567
)
 
(1,555
)
 
(1,731
)
Interest expense
23,999

 
24,850

 
25,865

 
26,597

Depreciation, depletion and amortization
39,908

 
36,332

 
37,240

 
26,848

Accretion of ARO
9,702

 
9,748

 
9,812

 
9,630

Amortization of intangible assets and liabilities
(253
)
 
(253
)
 
(250
)
 
(254
)
EBITDA
57,232

 
36,251

 
22,599

 
(83,539
)
Restructuring charges
553

 
103

 
—

 
—

(Gain) loss on foreign exchange
(2,109
)
 
1,313

 
(1,678
)
 
(1,200
)
Loss on extinguishment of debt
—

 
—

 
5,385

 
—

Loss on impairment
—

 
—

 
—

 
136,210

Acquisition-related costs 
1,400

 
—

 
3,070

 
1,489

Customer payments received under loan and lease receivables 
4,103

 
11,418

 
8,731

 
2,876

Derivative loss (gain)
(5,276
)
 
6,178

 
5,815

 
(1,130
)
Loss on sale/disposal of assets and other adjustments
240

 
703

 
2,008

 
2,339

Share-based compensation
1,522

 
2,124

 
1,942

 
2,160

Adjusted EBITDA
$
57,665

 
$
58,090

 
$
47,872

 
$
59,205














12