WESTMORELAND COAL CO

CIK:0000106455|SEC Filings

Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Income Statement [Abstract]
Revenues	$ 328,890	$ 365,014	$ 900,880	$ 1,039,341
Costs, expenses and other:
Cost of sales (exclusive of depreciation, depletion and amortization, shown separately)	270,808	280,311	723,033	837,651
Depreciation, depletion and amortization	26,693	38,066	79,124	114,131
Selling and administrative	39,801	26,398	113,095	83,300
Heritage health benefit expenses	904	1,044	2,706	3,036
(Gain) loss on sale/disposal of assets	(969)	236	(3,366)	202
Loss on impairment	0	0	143,324	0
Derivative gain	0	(4,667)	0	(6,571)
Income from equity affiliates	(984)	(1,355)	(2,092)	(4,274)
Other operating loss (income)	(5)	0	18	0
Total costs, expenses and other	336,258	340,033	1,055,806	1,027,475
Operating (loss) income	(7,368)	24,981	(154,926)	11,866
Other (expense) income:
Interest expense	(32,769)	(30,017)	(93,668)	(89,388)
Gain (loss) on extinguishment of debt	17	0	(1,821)	0
Interest income	1,513	1,012	3,730	2,942
(Loss) gain on foreign exchange	(1,070)	(1,733)	505	(3,337)
Other expense	(1,519)	(6,974)	(7,401)	(11,990)
Total other income (expense)	(33,828)	(37,712)	(98,655)	(101,773)
Loss before income taxes	(41,196)	(12,731)	(253,581)	(89,907)
Income tax expense (benefit)	289	(256)	(457)	(1,030)
Net loss	(41,485)	(12,475)	(253,124)	(88,877)
Less net loss attributable to noncontrolling interest	(945)	(78)	(6,927)	(715)
Net loss applicable to common shareholders	$ (40,540)	$ (12,397)	$ (246,197)	$ (88,162)
Net loss per share applicable to common shareholders:
Basic and diluted (in dollars per share)	$ (2.16)	$ (0.66)	$ (13.16)	$ (4.72)
Weighted average number of common shares outstanding:
Basic and diluted (shares)	18,776	18,742	18,704	18,672

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Cash flows from operating activities:
Net loss	$ (253,124)	$ (88,877)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation, depletion and amortization	79,124	114,131
Accretion of asset retirement obligation and receivable	26,002	33,796
Share-based compensation	1,845	3,846
Loss on impairment	143,324	0
Non-cash interest expense	13,028	6,981
Amortization of deferred financing costs	6,459	8,183
Non-cash loss on extinguishment of debt	1,420	0
Gain on derivative instruments	0	(6,571)
(Gain) loss on foreign exchange	(505)	3,337
Income from equity affiliates	(2,092)	(4,274)
Distributions from equity affiliates	3,642	4,970
Deferred income tax benefit	(416)	(998)
Other	(3,842)	3,341
Changes in operating assets and liabilities:
Receivables	2,193	(1,223)
Inventories	(5,890)	19,713
Accounts payable and accrued expenses	4,124	(26,965)
Interest payable	22,151	(7,165)
Deferred revenue	(577)	(6,085)
Unbilled revenues	21,135	(19,959)
Other assets and liabilities	(19,776)	17,977
Asset retirement obligation	(29,634)	(33,004)
Net cash provided by operating activities	8,591	21,154
Cash flows from investing activities:
Additions to property, plant and equipment	(25,309)	(25,365)
Proceeds from sales of restricted investments	29,801	33,686
Purchases of restricted investments	(29,239)	(38,594)
Cash payments related to acquisitions and other	0	(3,580)
Proceeds from sales of assets	3,162	774
Receipts from loan and lease receivables	0	50,488
Other	(581)	(1,384)
Net cash (used in) provided by investing activities	(22,166)	16,025
Cash flows from financing activities:
Borrowings from long-term debt, net of debt discount	86,700	0
Repayments of long-term debt	(72,766)	(64,078)
Borrowings on revolving lines of credit	122,400	236,100
Repayments of revolving lines of credit	(122,400)	(225,560)
Debt issuance costs and other refinancing costs	(2,664)	0
Other	0	(550)
Net cash provided by (used in) financing activities	11,270	(54,088)
Effect of exchange rate changes on cash	1,997	321
Net decrease in cash and cash equivalents, including restricted cash	(308)	(16,588)
Cash and cash equivalents, including restricted cash, beginning of period	152,439	129,615
Cash and cash equivalents, including restricted cash, end of period	152,131	113,027
Supplemental disclosures of cash flow information:
Cash paid for interest	53,477	81,478
Non-cash transactions:
Accrued purchases of property and equipment	3,223	3,508
Capital leases and other financing sources	616	503
San Juan longwall financing	8,643	0
Cash and cash equivalents, including restricted cash, end of period
Cash and cash equivalents, including restricted cash, end of period	$ 152,439	$ 129,615

Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017	Sep. 30, 2017
Current assets:
Cash and cash equivalents	$ 93,590	$ 103,247	$ 44,143
Receivables:
Trade	88,823	89,311
Other	15,114	17,697
Total receivables	103,937	107,008
Inventories	109,845	106,795
Unbilled revenues	45,345	63,874
Other current assets	35,154	11,517
Total current assets	387,871	392,441
Property, plant and equipment:
Land, mineral rights, property, plant and equipment	1,252,628	1,665,740
Less accumulated depreciation, depletion and amortization	(685,166)	(923,905)
Net land, mineral rights, property, plant and equipment	567,462	741,835
Advanced coal royalties	12,637	21,404
Restricted investments, reclamation deposits and bond collateral	207,461	200,194
Unbilled revenues, less current portion	222,447	225,245
Investment in joint venture	25,364	27,763
Other assets	44,615	55,036
Total Assets	1,467,857	1,663,918	$ 1,652,858
Current liabilities:
Current installments of long-term debt	1,085,121	983,427
Accounts payable and accrued expenses:
Trade and other accrued liabilities	119,503	121,489
Interest payable	41,478	22,840
Production taxes	45,780	41,688
Postretirement medical benefits	14,734	14,734
Deferred revenue	2,648	3,201
Asset retirement obligations	50,958	48,429
Other current liabilities	9,370	9,401
Total current liabilities	1,369,592	1,245,209
Long-term debt, less current installments	12,408	64,980
Postretirement medical benefits, less current portion	319,626	317,407
Pension and SERP obligations, less current portion	41,395	43,585
Asset retirement obligations, less current portion	412,461	426,038
Other liabilities	35,273	31,477
Total liabilities	2,190,755	2,128,696
Shareholders' deficit:
Common stock of $0.01 par value: Authorized 30,000,000 shares; Issued and outstanding 18,788,532 shares at September 30, 2018 and 18,771,643 shares at December 31, 2017	188	188
Other paid-in capital	252,338	250,494
Accumulated other comprehensive loss	(165,493)	(158,699)
Accumulated deficit	(798,491)	(552,263)
Total Westmoreland Coal Company shareholders’ deficit	(711,458)	(460,280)
Noncontrolling interests in consolidated subsidiaries	(11,440)	(4,498)
Total deficit	(722,898)	(464,778)
Total Liabilities and Shareholders' Deficit	$ 1,467,857	$ 1,663,918