Delaware | 23-1128670 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
9540 South Maroon Circle, Suite 200 Englewood, CO | 80112 |
(Address of principal executive offices) | (Zip Code) |
Large accelerated filer | ¨ | Accelerated filer | x | |
Non-accelerated filer | ¨ | (Do not check if a smaller reporting company.) | Smaller reporting company | ¨ |
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(Unaudited) | |||||||
June 30, 2013 | December 31, 2012 | ||||||
(In thousands) | |||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 36,274 | $ | 31,610 | |||
Receivables: | |||||||
Trade | 56,916 | 60,037 | |||||
Contractual third-party reclamation receivables | 10,886 | 10,207 | |||||
Other | 2,972 | 3,220 | |||||
70,774 | 73,464 | ||||||
Inventories | 39,711 | 37,734 | |||||
Other current assets | 19,418 | 16,504 | |||||
Total current assets | 166,177 | 159,312 | |||||
Property, plant and equipment: | |||||||
Land and mineral rights | 262,845 | 261,741 | |||||
Plant and equipment | 653,531 | 635,720 | |||||
916,376 | 897,461 | ||||||
Less accumulated depreciation, depletion and amortization | 413,957 | 384,621 | |||||
Net property, plant and equipment | 502,419 | 512,840 | |||||
Advanced coal royalties | 5,226 | 4,316 | |||||
Reclamation deposits | 73,744 | 72,718 | |||||
Restricted investments and bond collateral | 88,079 | 87,209 | |||||
Contractual third-party reclamation receivables, less current portion | 82,501 | 84,158 | |||||
Intangible assets, net of accumulated amortization of $13.3 million and $12.4 million at June 30, 2013 and December 31, 2012, respectively | 2,364 | 3,203 | |||||
Other assets | 13,093 | 12,359 | |||||
Total Assets | $ | 933,603 | $ | 936,115 |
(Unaudited) | |||||||
June 30, 2013 | December 31, 2012 | ||||||
(In thousands) | |||||||
Liabilities and Shareholders’ Deficit | |||||||
Current liabilities: | |||||||
Current installments of long-term debt | $ | 22,710 | $ | 23,791 | |||
Accounts payable and accrued expenses: | |||||||
Trade | 54,860 | 52,093 | |||||
Production taxes | 35,612 | 33,228 | |||||
Workers’ compensation | 810 | 820 | |||||
Postretirement medical benefits | 14,068 | 14,068 | |||||
SERP | 390 | 390 | |||||
Deferred revenue | 11,612 | 12,822 | |||||
Asset retirement obligations | 24,105 | 22,238 | |||||
Other current liabilities | 13,149 | 11,462 | |||||
Total current liabilities | 177,316 | 170,912 | |||||
Long-term debt, less current installments | 326,326 | 337,198 | |||||
Workers’ compensation, less current portion | 8,436 | 8,710 | |||||
Excess of black lung benefit obligation over trust assets | 8,075 | 8,356 | |||||
Postretirement medical benefits, less current portion | 321,867 | 319,775 | |||||
Pension and SERP obligations, less current portion | 54,022 | 54,250 | |||||
Deferred revenue, less current portion | 51,887 | 56,891 | |||||
Asset retirement obligations, less current portion | 239,046 | 241,609 | |||||
Intangible liabilities, net of accumulated amortization of $11.9 million and $11.4 million at June 30, 2013 and December 31, 2012, respectively | 6,115 | 6,625 | |||||
Other liabilities | 22,073 | 18,020 | |||||
Total liabilities | 1,215,163 | 1,222,346 | |||||
Shareholders’ deficit: | |||||||
Preferred stock of $1.00 par value | |||||||
Authorized 5,000,000 shares; | |||||||
Issued and outstanding 159,960 shares at June 30, 2013 and December 31, 2012 | 160 | 160 | |||||
Common stock of $2.50 par value | |||||||
Authorized 30,000,000 shares; | |||||||
Issued and outstanding 14,549,409 shares at June 30, 2013 and 14,201,411 shares at December 31, 2012 | 36,372 | 35,502 | |||||
Other paid-in capital | 133,495 | 130,852 | |||||
Accumulated other comprehensive loss | (144,637 | ) | (148,345 | ) | |||
Accumulated deficit | (293,074 | ) | (289,727 | ) | |||
Total Westmoreland Coal Company shareholders’ deficit | (267,684 | ) | (271,558 | ) | |||
Noncontrolling interest | (13,876 | ) | (14,673 | ) | |||
Total deficit | (281,560 | ) | (286,231 | ) | |||
Total Liabilities and Shareholders’ Deficit | $ | 933,603 | $ | 936,115 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
(In thousands, except per share data) | |||||||||||||||
Revenues | $ | 162,499 | $ | 132,842 | $ | 323,947 | $ | 280,078 | |||||||
Cost, expenses and other: | |||||||||||||||
Cost of sales | 130,528 | 111,078 | 260,949 | 222,817 | |||||||||||
Depreciation, depletion and amortization | 15,397 | 13,720 | 29,823 | 27,009 | |||||||||||
Selling and administrative | 11,969 | 12,933 | 23,855 | 25,492 | |||||||||||
Heritage health benefit expenses | 3,109 | 4,052 | 7,060 | 7,862 | |||||||||||
Loss (gain) on sales of assets | (74 | ) | 239 | (308 | ) | 277 | |||||||||
Other operating income | (10,405 | ) | (4,918 | ) | (15,142 | ) | (8,203 | ) | |||||||
150,524 | 137,104 | 306,237 | 275,254 | ||||||||||||
Operating income (loss) | 11,975 | (4,262 | ) | 17,710 | 4,824 | ||||||||||
Other income (expense): | |||||||||||||||
Interest expense | (10,076 | ) | (11,032 | ) | (20,236 | ) | (20,915 | ) | |||||||
Loss on extinguishment of debt | (64 | ) | — | (64 | ) | — | |||||||||
Interest income | 280 | 490 | 577 | 895 | |||||||||||
Other income | 130 | 237 | 198 | 414 | |||||||||||
(9,730 | ) | (10,305 | ) | (19,525 | ) | (19,606 | ) | ||||||||
Income (loss) before income taxes | 2,245 | (14,567 | ) | (1,815 | ) | (14,782 | ) | ||||||||
Income tax expense (benefit) | 28 | (921 | ) | 55 | (914 | ) | |||||||||
Net loss | 2,217 | (13,646 | ) | (1,870 | ) | (13,868 | ) | ||||||||
Less net income (loss) attributable to noncontrolling interest | 2,499 | (1,563 | ) | 797 | (2,643 | ) | |||||||||
Net income (loss) attributable to the Parent company | (282 | ) | (12,083 | ) | (2,667 | ) | (11,225 | ) | |||||||
Less preferred stock dividend requirements | 340 | 340 | 680 | 680 | |||||||||||
Net loss applicable to common shareholders | $ | (622 | ) | $ | (12,423 | ) | $ | (3,347 | ) | $ | (11,905 | ) | |||
Net loss per share applicable to common shareholders: | |||||||||||||||
Basic and diluted | $ | (0.04 | ) | $ | (0.89 | ) | $ | (0.23 | ) | $ | (0.85 | ) | |||
Weighted average number of common shares outstanding | |||||||||||||||
Basic and diluted | 14,495 | 13,991 | 14,389 | 13,926 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
(In thousands) | |||||||||||||||
Net income (loss) | $ | 2,217 | $ | (13,646 | ) | $ | (1,870 | ) | $ | (13,868 | ) | ||||
Other comprehensive income | |||||||||||||||
Pension and other postretirement plans: | |||||||||||||||
Amortization of accumulated actuarial gains or losses, pension | 1,004 | 729 | 1,745 | 1,458 | |||||||||||
Amortization of accumulated actuarial gains or losses, transition obligations, and prior service costs, postretirement medical benefit | 1,001 | 643 | 2,002 | 1,286 | |||||||||||
Tax effect of other comprehensive income gains | — | (471 | ) | — | (975 | ) | |||||||||
Unrealized and realized gains and losses on available-for-sale securities | (39 | ) | (154 | ) | (39 | ) | (223 | ) | |||||||
Other comprehensive income | 1,966 | 747 | 3,708 | 1,546 | |||||||||||
Comprehensive income (loss) attributable to Westmoreland Coal Company | $ | 4,183 | $ | (12,899 | ) | $ | 1,838 | $ | (12,322 | ) |
Preferred Stock | Common Stock | Other Paid-In Capital | Accumulated Other Comprehensive Loss | Accumulated Deficit | Non-controlling Interest | Total Shareholders’ Equity (Deficit) | |||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||
(In thousands, except shares data) | |||||||||||||||||||||||||||||||||
Balance at December 31, 2012 | 159,960 | $ | 160 | 14,201,411 | $ | 35,502 | $ | 130,852 | $ | (148,345 | ) | $ | (289,727 | ) | $ | (14,673 | ) | $ | (286,231 | ) | |||||||||||||
Preferred dividends declared | — | — | — | — | — | — | (680 | ) | — | (680 | ) | ||||||||||||||||||||||
Common stock issued as compensation | — | — | 215,600 | 539 | 3,232 | — | — | — | 3,771 | ||||||||||||||||||||||||
Issuance of restricted stock | — | — | 132,398 | 331 | (589 | ) | — | — | — | (258 | ) | ||||||||||||||||||||||
Net (loss) income | — | — | — | — | — | — | (2,667 | ) | 797 | (1,870 | ) | ||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | 3,708 | — | — | 3,708 | ||||||||||||||||||||||||
Balance at June 30, 2013 | 159,960 | $ | 160 | 14,549,409 | $ | 36,372 | $ | 133,495 | $ | (144,637 | ) | $ | (293,074 | ) | $ | (13,876 | ) | $ | (281,560 | ) |
Six Months Ended June 30, | |||||||
2013 | 2012 | ||||||
(In thousands) | |||||||
Cash flows from operating activities: | |||||||
Net loss | $ | (1,870 | ) | $ | (13,868 | ) | |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||
Depreciation, depletion and amortization | 29,823 | 27,009 | |||||
Accretion of asset retirement obligation and receivable | 6,338 | 5,996 | |||||
Non-cash tax benefits | — | (975 | ) | ||||
Amortization of intangible assets and liabilities, net | 326 | 325 | |||||
Share-based compensation | 3,771 | 3,461 | |||||
Loss (gain) on sales of assets | (308 | ) | 277 | ||||
Amortization of deferred financing costs | 1,856 | 1,812 | |||||
Loss on extinguishment of debt | 64 | — | |||||
Gain on sales of investment securities | (28 | ) | (190 | ) | |||
Changes in operating assets and liabilities: | |||||||
Receivables, net | 3,687 | (6,925 | ) | ||||
Inventories | (1,977 | ) | (706 | ) | |||
Excess of black lung benefit obligation over trust assets | (281 | ) | 1,168 | ||||
Accounts payable and accrued expenses | 1,701 | 8,849 | |||||
Deferred revenue | (6,214 | ) | (4,727 | ) | |||
Income tax payable | (56 | ) | — | ||||
Accrual for workers’ compensation | (284 | ) | (158 | ) | |||
Asset retirement obligations | (5,424 | ) | (4,122 | ) | |||
Accrual for postretirement medical benefits | 4,094 | 2,742 | |||||
Pension and SERP obligations | 1,517 | 1,371 | |||||
Other assets and liabilities | (1,811 | ) | 2,576 | ||||
Net cash provided by operating activities | 34,924 | 23,915 | |||||
Cash flows from investing activities: | |||||||
Additions to property, plant and equipment | (13,467 | ) | (11,981 | ) | |||
Change in restricted investments and bond collateral and reclamation deposits | (8,714 | ) | (27,607 | ) | |||
Cash payments related to acquisitions | — | (72,522 | ) | ||||
Net proceeds from sales of assets | 577 | 91 | |||||
Proceeds from the sale of restricted investments | 6,807 | 1,581 | |||||
Receivable from customer for property and equipment purchases | (308 | ) | (183 | ) | |||
Net cash used in investing activities | (15,105 | ) | (110,621 | ) | |||
Cash flows from financing activities: | |||||||
Change in book overdrafts | 1,777 | 895 | |||||
Borrowings from long-term debt, net of debt discount | — | 119,364 | |||||
Repayments of long-term debt | (16,070 | ) | (10,854 | ) | |||
Borrowings on revolving lines of credit | 6,000 | 3,000 | |||||
Repayments on revolving lines of credit | (6,000 | ) | (3,000 | ) | |||
Debt issuance costs and other refinancing costs | (182 | ) | (5,472 | ) | |||
Preferred dividends paid | (680 | ) | (680 | ) | |||
Net cash provided by (used in) financing activities | (15,155 | ) | 103,253 | ||||
Net increase in cash and cash equivalents | 4,664 | 16,547 | |||||
Cash and cash equivalents, beginning of period | 31,610 | 30,783 | |||||
Cash and cash equivalents, end of period | $ | 36,274 | $ | 47,330 |
1. | BASIS OF PRESENTATION |
2. | ACQUISITION |
Six Months Ended June 30, 2012 | |||
(In thousands) | |||
Total Revenues | |||
As reported | $ | 280,078 | |
Pro forma | $ | 294,191 | |
Operating Income | |||
As reported | $ | 4,824 | |
Pro forma | $ | 7,098 | |
Net loss applicable to common shareholders | |||
As reported | $ | (11,905 | ) |
Pro forma | $ | (10,843 | ) |
Net loss per share applicable to common shareholders | |||
As reported | $ | (0.85 | ) |
Pro forma | $ | (0.78 | ) |
3. | ACCOUNTING POLICIES |
4. | INVENTORIES |
June 30, 2013 | December 31, 2012 | ||||||
(In thousands) | |||||||
Coal stockpiles | $ | 1,074 | $ | 989 | |||
Coal fuel inventories | 4,679 | 3,048 | |||||
Materials and supplies | 35,071 | 34,954 | |||||
Reserve for obsolete inventory | (1,113 | ) | (1,257 | ) | |||
Total | $ | 39,711 | $ | 37,734 |
5. | RESTRICTED INVESTMENTS AND BOND COLLATERAL |
June 30, 2013 | December 31, 2012 | ||||||
(In thousands) | |||||||
Coal Segment: | |||||||
WML debt reserve account | $ | 13,065 | $ | 13,062 | |||
Reclamation bond collateral: | |||||||
Kemmerer Mine | 24,699 | 24,702 | |||||
Absaloka Mine | 14,563 | 14,507 | |||||
Rosebud Mine | 12,496 | 12,495 | |||||
Beulah Mine | 1,270 | 1,270 | |||||
Power Segment: | |||||||
Letter of credit account | 5,995 | 5,990 | |||||
Corporate Segment: | |||||||
Postretirement medical benefit bonds | 9,362 | 8,593 | |||||
Workers’ compensation bonds | 6,629 | 6,590 | |||||
Total restricted investments and bond collateral | $ | 88,079 | $ | 87,209 |
Carrying Value | Fair Value | ||||||
(In thousands) | |||||||
Cash and cash equivalents | $ | 59,830 | $ | 59,830 | |||
Time deposits | 8,439 | 8,439 | |||||
Held-to-maturity securities | 19,810 | 19,842 | |||||
$ | 88,079 | $ | 88,111 |
Amortized cost | $ | 19,810 | |
Gross unrealized holding gains | 266 | ||
Gross unrealized holding losses | (234 | ) | |
Fair value | $ | 19,842 |
Amortized Cost | Fair Value | ||||||
(In thousands) | |||||||
Due within one year | $ | 604 | $ | 609 | |||
Due in five years or less | 13,177 | 13,264 | |||||
Due after five years to ten years | 2,000 | 2,000 | |||||
Due in more than ten years | 4,029 | 3,969 | |||||
$ | 19,810 | $ | 19,842 |
6. | LINES OF CREDIT AND LONG-TERM DEBT |
Total Debt Outstanding | |||||||
June 30, 2013 | December 31, 2012 | ||||||
(In thousands) | |||||||
10.75% senior notes due 2018 | $ | 251,500 | $ | 252,000 | |||
WML term debt due 2018 | 94,500 | 103,500 | |||||
Capital lease obligations | 10,922 | 13,926 | |||||
Other | 1,435 | 1,654 | |||||
Debt discount | (9,321 | ) | (10,091 | ) | |||
Total debt outstanding | 349,036 | 360,989 | |||||
Less current installments | (22,710 | ) | (23,791 | ) | |||
Total debt outstanding, less current installments | $ | 326,326 | $ | 337,198 |
7. | POSTRETIREMENT MEDICAL BENEFITS AND PENSION |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
(In thousands) | (In thousands) | ||||||||||||||
Components of net periodic benefit cost: | |||||||||||||||
Service cost | $ | 1,109 | $ | 888 | $ | 2,218 | $ | 1,540 | |||||||
Interest cost | 3,035 | 3,185 | 6,069 | 6,170 | |||||||||||
Amortization of deferred items | 1,001 | 643 | 2,003 | 1,286 | |||||||||||
Total net periodic benefit cost | $ | 5,145 | $ | 4,716 | $ | 10,290 | $ | 8,996 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
(In thousands) | (In thousands) | ||||||||||||||
Former mining operations | $ | 3,119 | $ | 2,828 | $ | 6,237 | $ | 5,657 | |||||||
Current operations | 2,026 | 1,888 | 4,053 | 3,339 | |||||||||||
Total net periodic benefit cost | $ | 5,145 | $ | 4,716 | $ | 10,290 | $ | 8,996 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
(In thousands) | (In thousands) | ||||||||||||||
Components of net periodic benefit cost: | |||||||||||||||
Service cost | $ | 638 | $ | 590 | $ | 1,173 | $ | 1,030 | |||||||
Interest cost | 1,555 | 1,699 | 3,180 | 3,147 | |||||||||||
Expected return on plan assets | (2,325 | ) | (2,174 | ) | (4,385 | ) | (4,079 | ) | |||||||
Amortization of deferred items | 1,004 | 729 | 1,745 | 1,458 | |||||||||||
Total net periodic pension cost | $ | 872 | $ | 844 | $ | 1,713 | $ | 1,556 |
8. | HERITAGE HEALTH BENEFIT EXPENSES |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
(In thousands) | (In thousands) | ||||||||||||||
Health care benefits | $ | 3,089 | $ | 2,874 | $ | 6,266 | $ | 5,677 | |||||||
Combined benefit fund payments | 576 | 561 | 1,152 | 1,121 | |||||||||||
Workers’ compensation benefits | 117 | 140 | 232 | 261 | |||||||||||
Black lung benefits (credit) | (673 | ) | 477 | (590 | ) | 803 | |||||||||
Total | $ | 3,109 | $ | 4,052 | $ | 7,060 | $ | 7,862 |
9. | ASSET RETIREMENT OBLIGATIONS, CONTRACTUAL THIRD-PARTY RECLAMATION RECEIVABLE, AND RECLAMATION DEPOSITS |
Asset Retirement Obligation | Contractual Third-Party Reclamation Receivable | Reclamation Deposits | |||||||||
(In thousands) | |||||||||||
Rosebud | $ | 119,090 | $ | 18,148 | $ | 73,744 | |||||
Jewett | 74,833 | 74,833 | — | ||||||||
Absaloka | 27,078 | 406 | — | ||||||||
Beulah | 18,802 | — | — | ||||||||
Kemmerer | 17,491 | — | — | ||||||||
Savage | 4,997 | — | — | ||||||||
ROVA | 860 | — | — | ||||||||
Total | $ | 263,151 | $ | 93,387 | $ | 73,744 |
Six Months Ended June 30, | |||||||
2013 | 2012 | ||||||
(In thousands) | |||||||
Asset retirement obligations, beginning of year (including current portion) | $ | 263,847 | $ | 247,478 | |||
Accretion | 10,951 | 10,856 | |||||
Liabilities settled | (11,647 | ) | (8,744 | ) | |||
Changes due to amount and timing of reclamation | — | (4,757 | ) | ||||
ARO acquired | — | 15,103 | |||||
Asset retirement obligations, end of period | 263,151 | 259,936 | |||||
Less current portion | (24,105 | ) | (18,489 | ) | |||
Asset retirement obligations, less current portion | $ | 239,046 | $ | 241,447 |
Carrying Value | Fair Value | Fair Value Hierarchy | |||||||
(In thousands) | |||||||||
Cash and cash equivalents | $ | 46,245 | $ | 46,245 | Level 1 | ||||
Held-to-maturity securities | 12,194 | 12,932 | Level 2 | ||||||
Time deposits | 14,289 | 14,289 | Level 1 | ||||||
Available-for-sale securities | 1,016 | 1,016 | Level 1 | ||||||
$ | 73,744 | $ | 74,482 |
Amortized cost | $ | 12,194 | |
Gross unrealized holding gains | 811 | ||
Gross unrealized holding losses | (73 | ) | |
Fair value | $ | 12,932 |
Amortized Cost | Fair Value | ||||||
(In thousands) | |||||||
Within one year | $ | — | $ | — | |||
Due in five years or less | 6,541 | 6,870 | |||||
Due after five years to ten years | 3,454 | 3,597 | |||||
Due in more than ten years | 2,199 | 2,465 | |||||
$ | 12,194 | $ | 12,932 |
Cost basis | $ | 1,000 | |
Gross unrealized holding gains | 16 | ||
Fair value | $ | 1,016 |
10. | FAIR VALUE MEASUREMENTS |
• | Level 1, defined as observable inputs such as quoted prices in active markets for identical assets. |
• | Level 2, defined as observable inputs other than Level 1 prices. These include quoted prices for similar assets or liabilities in an active market, quoted prices for identical assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. |
• | Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. |
Level 1 | |||
(In thousands) | |||
Assets: | |||
Available-for-sale investments included in Reclamation deposits | $ | 1,016 |
Carrying Value | Fair Value | ||||||
(In thousands) | |||||||
December 31, 2012 | $ | 345,408 | $ | 359,753 | |||
June 30, 2013 | $ | 336,679 | $ | 360,319 |
11. | SHAREHOLDERS’ EQUITY AND ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) |
Pension | Postretirement medical benefits | Available for sale securities | Tax effect of other comprehensive income gains | Accumulated other comprehensive loss | |||||||||||||||
(In thousands) | |||||||||||||||||||
Balance at December 31, 2012 | $ | (44,718 | ) | $ | (77,528 | ) | $ | 57 | $ | (26,156 | ) | $ | (148,345 | ) | |||||
Amounts reclassified from accumulated other comprehensive income (loss) | 1,745 | 2,002 | (39 | ) | — | 3,708 | |||||||||||||
Balance at June 30, 2013 | $ | (42,973 | ) | $ | (75,526 | ) | $ | 18 | $ | (26,156 | ) | $ | (144,637 | ) |
Details about accumulated other comprehensive income (loss) components | Amount reclassified from accumulated other comprehensive income (loss)1 | Affected line item in the statement where net income (loss) is presented | ||||||||
Three Months Ended June 30, 2013 | Six Months Ended June 30, 2013 | |||||||||
Available-for sale securities | ||||||||||
Unrealized gains and losses on available-for sale securities | $ | (27 | ) | $ | (27 | ) | Interest income | |||
Realized gains and losses on available-for sale securities | (12 | ) | (12 | ) | Other income (loss) | |||||
$ | (39 | ) | $ | (39 | ) | Total | ||||
Amortization of defined benefit pension items | ||||||||||
Actuarial losses | $ | 1,004 | $ | 1,745 | 2 | |||||
Amortization of postretirement medical items | ||||||||||
Prior service costs | $ | (159 | ) | $ | (319 | ) | 3 | |||
Actuarial losses | 1,160 | 2,321 | 3 | |||||||
$ | 1,001 | $ | 2,002 | Total |
(1) | Amounts in parentheses indicate debits to income/loss. |
(2) | These accumulated other comprehensive income components are included in the computation of net periodic pension cost. (See Note 7 - Pensions for additional details) |
(3) | These accumulated other comprehensive income components are included in the computation of net periodic postretirement medical cost. (See Note 7 - Postretirement Medical Benefits for additional details) |
12. | SHARE-BASED COMPENSATION |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
(In thousands) | (In thousands) | ||||||||||||||
Recognition of fair value of restricted stock units, stock options and SARs over vesting period; and issuance of stock | $ | 597 | $ | 984 | $ | 2,260 | $ | 1,728 | |||||||
Contributions of stock to the Company’s 401(k) plan | 788 | 575 | 1,511 | 1,733 | |||||||||||
Total share-based compensation expense | $ | 1,385 | $ | 1,559 | $ | 3,771 | $ | 3,461 |
Units | Weighted Average Grant-Date Fair Value | Unamortized Compensation Expense (In thousands) | |||||||||
Non-vested at December 31, 2012 | 680,173 | $ | 8.88 | ||||||||
Granted | 103,730 | 11.70 | |||||||||
Vested | (154,969 | ) | 8.75 | ||||||||
Non-vested at June 30, 2013 | 628,934 | $ | 7.45 | $ | 3,803 | (1) |
(1) | Expected to be recognized over the next three years. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||
(In thousands) | |||||||||||
Convertible securities | 1,093 | 1,093 | 1,093 | 1,093 | |||||||
Restricted stock units, stock options and SARs | 862 | 1,052 | 862 | 1,052 | |||||||
Total shares excluded from diluted shares calculation | 1,955 | 2,145 | 1,955 | 2,145 |
Coal | Power | Heritage | Corporate | Consolidated | |||||||||||||||
(In thousands) | |||||||||||||||||||
Three Months Ended June 30, 2013 | |||||||||||||||||||
Revenues | $ | 139,337 | $ | 23,162 | $ | — | $ | — | $ | 162,499 | |||||||||
Operating income (loss) | 13,076 | 4,838 | (3,530 | ) | (2,409 | ) | 11,975 | ||||||||||||
Depreciation, depletion, and amortization | 12,753 | 2,551 | — | 93 | 15,397 | ||||||||||||||
Total assets | 699,556 | 183,855 | 16,305 | 33,887 | 933,603 | ||||||||||||||
Capital expenditures | 7,209 | 564 | — | 393 | 8,166 | ||||||||||||||
Three Months Ended June 30, 2012 | |||||||||||||||||||
Revenues | $ | 116,960 | $ | 15,882 | $ | — | $ | — | $ | 132,842 | |||||||||
Operating income (loss) | 5,018 | (1,749 | ) | (4,527 | ) | (3,004 | ) | (4,262 | ) | ||||||||||
Depreciation, depletion, and amortization | 11,092 | 2,523 | — | 105 | 13,720 | ||||||||||||||
Total assets | 695,688 | 188,143 | 14,631 | 49,120 | 947,582 | ||||||||||||||
Capital expenditures | 6,102 | 1,401 | — | 58 | 7,561 | ||||||||||||||
Six Months Ended June 30, 2013 | |||||||||||||||||||
Revenues | $ | 281,449 | $ | 42,498 | $ | — | $ | — | $ | 323,947 | |||||||||
Operating income (loss) | 26,547 | 3,837 | (7,705 | ) | (4,969 | ) | 17,710 | ||||||||||||
Depreciation, depletion, and amortization | 24,555 | 5,081 | — | 187 | 29,823 | ||||||||||||||
Total assets | 699,556 | 183,855 | 16,305 | 33,887 | 933,603 | ||||||||||||||
Capital expenditures | 12,219 | 698 | — | 550 | 13,467 | ||||||||||||||
Six Months Ended June 30, 2012 | |||||||||||||||||||
Revenues | $ | 243,474 | $ | 36,604 | $ | — | $ | — | $ | 280,078 | |||||||||
Operating income (loss) | 19,454 | 1,042 | (8,537 | ) | (7,135 | ) | 4,824 | ||||||||||||
Depreciation, depletion, and amortization | 21,775 | 5,021 | — | 213 | 27,009 | ||||||||||||||
Total assets | 695,688 | 188,143 | 14,631 | 49,120 | 947,582 | ||||||||||||||
Capital expenditures | 10,038 | 1,912 | — | 31 | 11,981 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
(In thousands) | |||||||||||||||
Income (loss) from operations | $ | 11,975 | $ | (4,262 | ) | $ | 17,710 | $ | 4,824 | ||||||
Loss on extinguishment of debt | (64 | ) | — | (64 | ) | — | |||||||||
Interest expense | (10,076 | ) | (11,032 | ) | (20,236 | ) | (20,915 | ) | |||||||
Interest income | 280 | 490 | 577 | 895 | |||||||||||
Other income (loss) | 130 | 237 | 198 | 414 | |||||||||||
Loss before income taxes | $ | 2,245 | $ | (14,567 | ) | $ | (1,815 | ) | $ | (14,782 | ) |
15. | CONTINGENCIES |
(1) | in the event of a sale or other disposition of all or substantially all of the assets of such Guarantor Subsidiary, by way of merger, consolidation or otherwise, a sale or other disposition of all of the Equity Interests of such Guarantor Subsidiary then held by the Issuers or any Restricted Subsidiary; provided, that the sale or other disposition does not violate the “Asset Sales” provisions of the Indenture; |
(2) | if such Guarantor Subsidiary is designated as an Unrestricted Subsidiary in accordance with the provisions of this Indenture, upon effectiveness of such designation; |
(3) | upon Legal Defeasance or Covenant Defeasance (as such terms are defined in the indenture) or upon satisfaction and discharge of the Indenture; |
(4) | upon the liquidation or dissolution of such Guarantor Subsidiary, provided no event of default has occurred and is continuing; or |
(5) | at such time as such Guarantor Subsidiary is no longer required to be a Guarantor Subsidiary of the Senior Notes as described in the Indenture, provided no event of default has occurred and is continuing. |
Assets | Parent/ Issuer | Co-Issuer | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Consolidating Adjustments | Total | ||||||||||||||||||
Current assets: | ||||||||||||||||||||||||
Cash and cash equivalents | $ | 15,665 | $ | 476 | $ | 10,470 | $ | 9,663 | $ | — | $ | 36,274 | ||||||||||||
Receivables: | ||||||||||||||||||||||||
Trade | — | 15,013 | 9,909 | 31,994 | — | 56,916 | ||||||||||||||||||
Contractual third-party reclamation receivables | — | — | 57 | 10,829 | — | 10,886 | ||||||||||||||||||
Intercompany receivable/payable | (5,538 | ) | — | 2,753 | (30,220 | ) | 33,005 | — | ||||||||||||||||
Other | 113 | — | 16,551 | 1,355 | (15,047 | ) | 2,972 | |||||||||||||||||
(5,425 | ) | 15,013 | 29,270 | 13,958 | 17,958 | 70,774 | ||||||||||||||||||
Inventories | — | 4,679 | 16,462 | 18,570 | — | 39,711 | ||||||||||||||||||
Other current assets | 5,754 | 109 | 9,695 | 3,860 | — | 19,418 | ||||||||||||||||||
Total current assets | 15,994 | 20,277 | 65,897 | 46,051 | 17,958 | 166,177 | ||||||||||||||||||
Property, plant and equipment: | ||||||||||||||||||||||||
Land and mineral rights | — | 1,395 | 92,637 | 168,813 | — | 262,845 | ||||||||||||||||||
Plant and equipment | 3,850 | 220,641 | 227,231 | 201,809 | — | 653,531 | ||||||||||||||||||
3,850 | 222,036 | 319,868 | 370,622 | — | 916,376 | |||||||||||||||||||
Less accumulated depreciation, depletion and amortization | 2,550 | 66,556 | 118,656 | 226,195 | — | 413,957 | ||||||||||||||||||
Net property, plant and equipment | 1,300 | 155,480 | 201,212 | 144,427 | — | 502,419 | ||||||||||||||||||
Advanced coal royalties | — | — | 500 | 4,726 | — | 5,226 | ||||||||||||||||||
Reclamation deposits | — | — | — | 73,744 | — | 73,744 | ||||||||||||||||||
Restricted investments and bond collateral | 15,991 | 5,995 | 39,263 | 26,830 | — | 88,079 | ||||||||||||||||||
Contractual third-party reclamation receivables | — | — | 349 | 82,152 | — | 82,501 | ||||||||||||||||||
Intangible assets | — | 2,103 | — | 261 | — | 2,364 | ||||||||||||||||||
Investment in subsidiaries | 241,397 | — | (792 | ) | 3,770 | (244,375 | ) | — | ||||||||||||||||
Other assets | 9,459 | — | 2,314 | 3,320 | (2,000 | ) | 13,093 | |||||||||||||||||
Total assets | $ | 284,141 | $ | 183,855 | $ | 308,743 | $ | 385,281 | $ | (228,417 | ) | $ | 933,603 |
Liabilities and Shareholders’ Deficit | Parent/ Issuer | Co-Issuer | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Consolidating Adjustments | Total | ||||||||||||||||||
Current liabilities | ||||||||||||||||||||||||
Current installments of long-term debt | $ | (1,637 | ) | $ | — | $ | 2,454 | $ | 21,893 | $ | — | $ | 22,710 | |||||||||||
Accounts payable and accrued expenses: | ||||||||||||||||||||||||
Trade | 2,779 | 8,278 | 15,372 | 43,467 | (15,036 | ) | 54,860 | |||||||||||||||||
Production taxes | — | 805 | 13,264 | 21,543 | — | 35,612 | ||||||||||||||||||
Workers’ compensation | 810 | — | — | — | — | 810 | ||||||||||||||||||
Postretirement medical benefits | 12,494 | — | 87 | 1,487 | — | 14,068 | ||||||||||||||||||
SERP | 390 | — | — | — | — | 390 | ||||||||||||||||||
Deferred revenue | — | 9,101 | 279 | 2,232 | — | 11,612 | ||||||||||||||||||
Asset retirement obligations | — | — | 3,563 | 20,542 | — | 24,105 | ||||||||||||||||||
Other current liabilities | 11,292 | — | 722 | 1,149 | (14 | ) | 13,149 | |||||||||||||||||
Total current liabilities | 26,128 | 18,184 | 35,741 | 112,313 | (15,050 | ) | 177,316 | |||||||||||||||||
Long-term debt, less current installments | 245,815 | — | 1,877 | 80,634 | (2,000 | ) | 326,326 | |||||||||||||||||
Workers’ compensation, less current portion | 8,436 | — | — | — | — | 8,436 | ||||||||||||||||||
Excess of black lung benefit obligation over trust assets | 8,075 | — | — | — | — | 8,075 | ||||||||||||||||||
Postretirement medical benefits, less current portion | 222,720 | — | 58,931 | 40,216 | — | 321,867 | ||||||||||||||||||
Pension and SERP obligations, less current portion | 28,660 | 284 | 19,640 | 5,438 | — | 54,022 | ||||||||||||||||||
Deferred revenue, less current portion | — | 45,736 | — | 6,151 | — | 51,887 | ||||||||||||||||||
Asset retirement obligations, less current portion | — | 860 | 41,004 | 197,182 | — | 239,046 | ||||||||||||||||||
Intangible liabilities | — | 6,115 | — | — | — | 6,115 | ||||||||||||||||||
Other liabilities | 5,694 | — | 14,872 | 1,507 | — | 22,073 | ||||||||||||||||||
Intercompany receivable/payable | 20,173 | — | (5,097 | ) | 1,849 | (16,925 | ) | — | ||||||||||||||||
Total liabilities | 565,701 | 71,179 | 166,968 | 445,290 | (33,975 | ) | 1,215,163 | |||||||||||||||||
Shareholders’ deficit | ||||||||||||||||||||||||
Preferred stock | 160 | — | — | — | — | 160 | ||||||||||||||||||
Common stock | 36,372 | 5 | 110 | 132 | (247 | ) | 36,372 | |||||||||||||||||
Other paid-in capital | 133,495 | 52,821 | 92,203 | 66,178 | (211,202 | ) | 133,495 | |||||||||||||||||
Accumulated other comprehensive loss | (144,637 | ) | (358 | ) | (5,003 | ) | (23,658 | ) | 29,019 | (144,637 | ) | |||||||||||||
Accumulated earnings (deficit) | (293,074 | ) | 60,208 | 54,465 | (102,661 | ) | (12,012 | ) | (293,074 | ) | ||||||||||||||
Total Westmoreland Coal Company shareholders’ deficit | (267,684 | ) | 112,676 | 141,775 | (60,009 | ) | (194,442 | ) | (267,684 | ) | ||||||||||||||
Noncontrolling interest | (13,876 | ) | — | — | — | — | (13,876 | ) | ||||||||||||||||
Total equity (deficit) | (281,560 | ) | 112,676 | 141,775 | (60,009 | ) | (194,442 | ) | (281,560 | ) | ||||||||||||||
Total liabilities and shareholders’ deficit | $ | 284,141 | $ | 183,855 | $ | 308,743 | $ | 385,281 | $ | (228,417 | ) | $ | 933,603 |
Assets | Parent/ Issuer | Co-Issuer | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Consolidating Adjustments | Total | ||||||||||||||||||
Current assets: | ||||||||||||||||||||||||
Cash and cash equivalents | $ | 14,836 | $ | 4,545 | $ | 5,362 | $ | 6,867 | $ | — | $ | 31,610 | ||||||||||||
Receivables: | ||||||||||||||||||||||||
Trade | — | 13,018 | 13,428 | 33,591 | — | 60,037 | ||||||||||||||||||
Contractual third-party reclamation receivables | — | — | 56 | 10,151 | — | 10,207 | ||||||||||||||||||
Intercompany receivable/payable | (8,002 | ) | — | 5,667 | (30,641 | ) | 32,976 | — | ||||||||||||||||
Other | 77 | — | 16,806 | 1,182 | (14,845 | ) | 3,220 | |||||||||||||||||
(7,925 | ) | 13,018 | 35,957 | 14,283 | 18,131 | 73,464 | ||||||||||||||||||
Inventories | — | 3,047 | 16,538 | 18,149 | — | 37,734 | ||||||||||||||||||
Other current assets | 739 | 298 | 5,550 | 9,917 | — | 16,504 | ||||||||||||||||||
Total current assets | 7,650 | 20,908 | 63,407 | 49,216 | 18,131 | 159,312 | ||||||||||||||||||
Property, plant and equipment: | ||||||||||||||||||||||||
Land and mineral rights | — | 1,395 | 91,741 | 168,605 | — | 261,741 | ||||||||||||||||||
Plant and equipment | 3,198 | 219,857 | 215,751 | 196,914 | — | 635,720 | ||||||||||||||||||
3,198 | 221,252 | 307,492 | 365,519 | — | 897,461 | |||||||||||||||||||
Less accumulated depreciation, depletion and amortization | 2,364 | 61,474 | 108,151 | 212,632 | — | 384,621 | ||||||||||||||||||
Net property, plant and equipment | 834 | 159,778 | 199,341 | 152,887 | — | 512,840 | ||||||||||||||||||
Advanced coal royalties | — | — | 500 | 3,816 | — | 4,316 | ||||||||||||||||||
Reclamation deposits | — | — | — | 72,718 | — | 72,718 | ||||||||||||||||||
Restricted investments and bond collateral | 15,183 | 5,990 | 39,208 | 26,828 | — | 87,209 | ||||||||||||||||||
Contractual third-party reclamation receivables | — | — | 327 | 83,831 | — | 84,158 | ||||||||||||||||||
Intangible assets | — | 2,923 | — | 280 | — | 3,203 | ||||||||||||||||||
Investment in subsidiaries | 248,565 | — | (792 | ) | 3,770 | (251,543 | ) | — | ||||||||||||||||
Other assets | 10,267 | — | 635 | 3,457 | (2,000 | ) | 12,359 | |||||||||||||||||
Total assets | $ | 282,499 | $ | 189,599 | $ | 302,626 | $ | 396,803 | $ | (235,412 | ) | $ | 936,115 |
Liabilities and Shareholders’ Deficit | Parent/ Issuer | Co-Issuer | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Consolidating Adjustments | Total | ||||||||||||||||||
Current liabilities | ||||||||||||||||||||||||
Current installments of long-term debt | $ | (1,548 | ) | $ | — | $ | 1,939 | $ | 23,400 | $ | — | $ | 23,791 | |||||||||||
Accounts payable and accrued expenses: | ||||||||||||||||||||||||
Trade | 4,707 | 4,978 | 15,163 | 42,085 | (14,840 | ) | 52,093 | |||||||||||||||||
Production taxes | — | 3 | 10,014 | 23,211 | — | 33,228 | ||||||||||||||||||
Workers’ compensation | 820 | — | — | — | — | 820 | ||||||||||||||||||
Postretirement medical benefits | 12,494 | — | 87 | 1,487 | — | 14,068 | ||||||||||||||||||
SERP | 390 | — | — | — | — | 390 | ||||||||||||||||||
Deferred revenue | — | 8,788 | 2,997 | 1,037 | — | 12,822 | ||||||||||||||||||
Asset retirement obligations | — | — | 3,519 | 18,719 | — | 22,238 | ||||||||||||||||||
Other current liabilities | 11,312 | — | 10 | 144 | (4 | ) | 11,462 | |||||||||||||||||
Total current liabilities | 28,175 | 13,769 | 33,729 | 110,083 | (14,844 | ) | 170,912 | |||||||||||||||||
Long-term debt, less current installments | 245,456 | — | 2,473 | 91,269 | (2,000 | ) | 337,198 | |||||||||||||||||
Workers’ compensation, less current portion | 8,710 | — | — | — | — | 8,710 | ||||||||||||||||||
Excess of black lung benefit obligation over trust assets | 8,356 | — | — | — | — | 8,356 | ||||||||||||||||||
Postretirement medical benefits, less current portion | 224,336 | — | 55,981 | 39,458 | — | 319,775 | ||||||||||||||||||
Pension and SERP obligations, less current portion | 29,265 | 289 | 19,346 | 5,350 | — | 54,250 | ||||||||||||||||||
Deferred revenue, less current portion | — | 50,239 | — | 6,652 | — | 56,891 | ||||||||||||||||||
Asset retirement obligations, less current portion | — | 829 | 40,063 | 200,717 | — | 241,609 | ||||||||||||||||||
Intangible liabilities | — | 6,625 | — | — | — | 6,625 | ||||||||||||||||||
Other liabilities | 701 | — | 15,677 | 1,642 | — | 18,020 | ||||||||||||||||||
Intercompany receivable/payable | 23,731 | — | (7,972 | ) | 35,787 | (51,546 | ) | — | ||||||||||||||||
Total liabilities | 568,730 | 71,751 | 159,297 | 490,958 | (68,390 | ) | 1,222,346 | |||||||||||||||||
Shareholders’ deficit | ||||||||||||||||||||||||
Preferred stock | 160 | — | — | — | — | 160 | ||||||||||||||||||
Common stock | 35,502 | 5 | 110 | 132 | (247 | ) | 35,502 | |||||||||||||||||
Other paid-in capital | 130,852 | 52,807 | 93,456 | 62,539 | (208,802 | ) | 130,852 | |||||||||||||||||
Accumulated other comprehensive loss | (148,345 | ) | (372 | ) | (4,987 | ) | (24,492 | ) | 29,851 | (148,345 | ) | |||||||||||||
Accumulated earnings (deficit) | (289,727 | ) | 65,408 | 54,750 | (132,334 | ) | 12,176 | (289,727 | ) | |||||||||||||||
Total Westmoreland Coal Company shareholders’ deficit | (271,558 | ) | 117,848 | 143,329 | (94,155 | ) | (167,022 | ) | (271,558 | ) | ||||||||||||||
Noncontrolling interest | (14,673 | ) | — | — | — | — | (14,673 | ) | ||||||||||||||||
Total equity (deficit) | (286,231 | ) | 117,848 | 143,329 | (94,155 | ) | (167,022 | ) | (286,231 | ) | ||||||||||||||
Total liabilities and shareholders’ deficit | $ | 282,499 | $ | 189,599 | $ | 302,626 | $ | 396,803 | $ | (235,412 | ) | $ | 936,115 |
Parent/ Issuer | Co-Issuer | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Consolidating Adjustments | Total | ||||||||||||||||||
Revenues | $ | — | $ | 23,162 | $ | 45,742 | $ | 98,246 | $ | (4,651 | ) | $ | 162,499 | ||||||||||
Costs and expenses: | |||||||||||||||||||||||
Cost of sales | — | 14,901 | 42,116 | 78,161 | (4,650 | ) | 130,528 | ||||||||||||||||
Depreciation, depletion and amortization | 93 | 2,551 | 5,289 | 7,465 | (1 | ) | 15,397 | ||||||||||||||||
Selling and administrative | 3,131 | 872 | 2,618 | 5,348 | — | 11,969 | |||||||||||||||||
Heritage health benefit expenses | 2,844 | — | — | 265 | — | 3,109 | |||||||||||||||||
Gain on sales of assets | — | — | (14 | ) | (60 | ) | — | (74 | ) | ||||||||||||||
Other operating income | — | — | (10,405 | ) | — | — | (10,405 | ) | |||||||||||||||
6,068 | 18,324 | 39,604 | 91,179 | (4,651 | ) | 150,524 | |||||||||||||||||
Operating income (loss) | (6,068 | ) | 4,838 | 6,138 | 7,067 | — | 11,975 | ||||||||||||||||
Other income (expense): | |||||||||||||||||||||||
Interest expense | (7,591 | ) | (10 | ) | (85 | ) | (2,399 | ) | 9 | (10,076 | ) | ||||||||||||
Loss on extinguishment of debt | (64 | ) | — | — | — | — | (64 | ) | |||||||||||||||
Interest income | 46 | 5 | 67 | 171 | (9 | ) | 280 | ||||||||||||||||
Other income (loss) | — | — | 149 | (21 | ) | 2 | 130 | ||||||||||||||||
(7,609 | ) | (5 | ) | 131 | (2,249 | ) | 2 | (9,730 | ) | ||||||||||||||
Income (loss) before income taxes and income of consolidated subsidiaries | (13,677 | ) | 4,833 | 6,269 | 4,818 | 2 | 2,245 | ||||||||||||||||
Equity in income of subsidiaries | 15,893 | — | — | — | (15,893 | ) | — | ||||||||||||||||
Loss before income taxes | 2,216 | 4,833 | 6,269 | 4,818 | (15,891 | ) | 2,245 | ||||||||||||||||
Income tax expense (benefit) | (1 | ) | — | (2,571 | ) | 3,710 | (1,110 | ) | 28 | ||||||||||||||
Net income (loss) | 2,217 | 4,833 | 8,840 | 1,108 | (14,781 | ) | 2,217 | ||||||||||||||||
Less net loss attributable to noncontrolling interest | 2,499 | — | — | — | — | 2,499 | |||||||||||||||||
Net income (loss) attributable to the Parent company | $ | (282 | ) | $ | 4,833 | $ | 8,840 | $ | 1,108 | $ | (14,781 | ) | $ | (282 | ) |
Parent/ Issuer | Co-Issuer | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Consolidating Adjustments | Total | ||||||||||||||||||
Revenues | $ | — | $ | 15,882 | $ | 44,920 | $ | 78,512 | $ | (6,472 | ) | $ | 132,842 | ||||||||||
Costs and expenses: | |||||||||||||||||||||||
Cost of sales | — | 14,165 | 33,418 | 69,967 | (6,472 | ) | 111,078 | ||||||||||||||||
Depreciation, depletion and amortization | 105 | 2,522 | 4,871 | 6,222 | — | 13,720 | |||||||||||||||||
Selling and administrative | 3,726 | 943 | 2,818 | 5,446 | — | 12,933 | |||||||||||||||||
Heritage health benefit expenses | 3,799 | — | — | 253 | — | 4,052 | |||||||||||||||||
Loss on sales of assets | — | — | — | 239 | — | 239 | |||||||||||||||||
Other operating income | — | — | (4,918 | ) | — | — | (4,918 | ) | |||||||||||||||
7,630 | 17,630 | 36,189 | 82,127 | (6,472 | ) | 137,104 | |||||||||||||||||
Operating income (loss) | (7,630 | ) | (1,748 | ) | 8,731 | (3,615 | ) | — | (4,262 | ) | |||||||||||||
Other income (expense): | |||||||||||||||||||||||
Interest expense | (8,122 | ) | (10 | ) | (111 | ) | (2,817 | ) | 28 | (11,032 | ) | ||||||||||||
Interest income | 98 | 1 | 64 | 355 | (28 | ) | 490 | ||||||||||||||||
Other income | 138 | — | 63 | 36 | — | 237 | |||||||||||||||||
(7,886 | ) | (9 | ) | 16 | (2,426 | ) | — | (10,305 | ) | ||||||||||||||
Income (loss) before income taxes and income of consolidated subsidiaries | (15,516 | ) | (1,757 | ) | 8,747 | (6,041 | ) | — | (14,567 | ) | |||||||||||||
Equity in income of subsidiaries | 923 | — | — | — | (923 | ) | — | ||||||||||||||||
Income (loss) before income taxes | (14,593 | ) | (1,757 | ) | 8,747 | (6,041 | ) | (923 | ) | (14,567 | ) | ||||||||||||
Income tax expense (benefit) | (947 | ) | — | 1,231 | (2,490 | ) | 1,285 | (921 | ) | ||||||||||||||
Net income (loss) | (13,646 | ) | (1,757 | ) | 7,516 | (3,551 | ) | (2,208 | ) | (13,646 | ) | ||||||||||||
Less net loss attributable to noncontrolling interest | (1,563 | ) | — | — | — | — | (1,563 | ) | |||||||||||||||
Net income (loss) attributable to the Parent company | $ | (12,083 | ) | $ | (1,757 | ) | $ | 7,516 | $ | (3,551 | ) | $ | (2,208 | ) | $ | (12,083 | ) |
Parent/ Issuer | Co-Issuer | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Consolidating Adjustments | Total | ||||||||||||||||||
Revenues | $ | — | $ | 42,498 | $ | 96,429 | $ | 198,647 | $ | (13,627 | ) | $ | 323,947 | ||||||||||
Costs and expenses: | |||||||||||||||||||||||
Cost of sales | — | 31,856 | 82,538 | 160,182 | (13,627 | ) | 260,949 | ||||||||||||||||
Depreciation, depletion and amortization | 187 | 5,082 | 10,478 | 14,076 | — | 29,823 | |||||||||||||||||
Selling and administrative | 6,185 | 1,726 | 5,255 | 10,689 | — | 23,855 | |||||||||||||||||
Heritage health benefit expenses | 6,533 | — | — | 527 | — | 7,060 | |||||||||||||||||
Gain on sales of assets | — | — | (147 | ) | (161 | ) | — | (308 | ) | ||||||||||||||
Other operating income | — | — | (15,142 | ) | — | — | (15,142 | ) | |||||||||||||||
12,905 | 38,664 | 82,982 | 185,313 | (13,627 | ) | 306,237 | |||||||||||||||||
Operating income (loss) | (12,905 | ) | 3,834 | 13,447 | 13,334 | — | 17,710 | ||||||||||||||||
Other income (expense): | |||||||||||||||||||||||
Interest expense | (15,175 | ) | (20 | ) | (159 | ) | (4,899 | ) | 17 | (20,236 | ) | ||||||||||||
Loss on extinguishment of debt | (64 | ) | — | — | — | — | (64 | ) | |||||||||||||||
Interest income | 76 | 15 | 110 | 393 | (17 | ) | 577 | ||||||||||||||||
Other income (loss) | — | — | 242 | (44 | ) | — | 198 | ||||||||||||||||
(15,163 | ) | (5 | ) | 193 | (4,550 | ) | — | (19,525 | ) | ||||||||||||||
Income (loss) before income taxes and income of consolidated subsidiaries | (28,068 | ) | 3,829 | 13,640 | 8,784 | — | (1,815 | ) | |||||||||||||||
Equity in income of subsidiaries | 26,198 | — | — | — | (26,198 | ) | — | ||||||||||||||||
Loss before income taxes | (1,870 | ) | 3,829 | 13,640 | 8,784 | (26,198 | ) | (1,815 | ) | ||||||||||||||
Income tax expense (benefit) | — | — | (2,075 | ) | 6,533 | (4,403 | ) | 55 | |||||||||||||||
Net income (loss) | (1,870 | ) | 3,829 | 15,715 | 2,251 | (21,795 | ) | (1,870 | ) | ||||||||||||||
Less net loss attributable to noncontrolling interest | 797 | — | — | — | — | 797 | |||||||||||||||||
Net income (loss) attributable to the Parent company | $ | (2,667 | ) | $ | 3,829 | $ | 15,715 | $ | 2,251 | $ | (21,795 | ) | $ | (2,667 | ) |
Parent/ Issuer | Co-Issuer | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Consolidating Adjustments | Total | ||||||||||||||||||
Revenues | $ | — | $ | 36,604 | $ | 83,111 | $ | 173,928 | $ | (13,565 | ) | $ | 280,078 | ||||||||||
Costs and expenses: | |||||||||||||||||||||||
Cost of sales | — | 28,662 | 60,251 | 147,469 | (13,565 | ) | 222,817 | ||||||||||||||||
Depreciation, depletion and amortization | 213 | 5,021 | 8,651 | 13,124 | — | 27,009 | |||||||||||||||||
Selling and administrative | 6,793 | 1,879 | 5,202 | 13,145 | (1,527 | ) | 25,492 | ||||||||||||||||
Heritage health benefit expenses | 7,368 | — | — | 494 | — | 7,862 | |||||||||||||||||
Loss on sales of assets | — | — | — | 277 | — | 277 | |||||||||||||||||
Other operating loss (income) | — | — | (9,730 | ) | — | 1,527 | (8,203 | ) | |||||||||||||||
14,374 | 35,562 | 64,374 | 174,509 | (13,565 | ) | 275,254 | |||||||||||||||||
Operating income (loss) | (14,374 | ) | 1,042 | 18,737 | (581 | ) | — | 4,824 | |||||||||||||||
Other income (expense): | |||||||||||||||||||||||
Interest expense | (15,022 | ) | (20 | ) | (205 | ) | (5,716 | ) | 48 | (20,915 | ) | ||||||||||||
Interest income | 148 | 4 | 117 | 674 | (48 | ) | 895 | ||||||||||||||||
Other income | 190 | — | 87 | 137 | — | 414 | |||||||||||||||||
(14,684 | ) | (16 | ) | (1 | ) | (4,905 | ) | — | (19,606 | ) | |||||||||||||
Income (loss) before income taxes and income of consolidated subsidiaries | (29,058 | ) | 1,026 | 18,736 | (5,486 | ) | — | (14,782 | ) | ||||||||||||||
Equity in income of subsidiaries | 14,215 | — | — | — | (14,215 | ) | — | ||||||||||||||||
Loss before income taxes | (14,843 | ) | 1,026 | 18,736 | (5,486 | ) | (14,215 | ) | (14,782 | ) | |||||||||||||
Income tax expense (benefit) | (975 | ) | — | 1,769 | (871 | ) | (837 | ) | (914 | ) | |||||||||||||
Net income (loss) | (13,868 | ) | 1,026 | 16,967 | (4,615 | ) | (13,378 | ) | (13,868 | ) | |||||||||||||
Less net loss attributable to noncontrolling interest | (2,643 | ) | — | — | — | — | (2,643 | ) | |||||||||||||||
Net income (loss) attributable to the Parent company | $ | (11,225 | ) | $ | 1,026 | $ | 16,967 | $ | (4,615 | ) | $ | (13,378 | ) | $ | (11,225 | ) |
Parent/Issuer | Co-Issuer | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Consolidating Adjustments | Total | ||||||||||||||||||
Net income (loss) | $ | 2,217 | $ | 4,833 | $ | 8,840 | $ | 1,108 | $ | (14,781 | ) | $ | 2,217 | ||||||||||
Other comprehensive income (loss) | |||||||||||||||||||||||
Amortization of accumulated actuarial gains or losses, pension | 1,004 | 8 | — | 240 | (248 | ) | 1,004 | ||||||||||||||||
Amortization of accumulated actuarial gains or losses, transition obligations, and prior service costs, postretirement medical benefit | 1,001 | — | — | 214 | (214 | ) | 1,001 | ||||||||||||||||
Unrealized and realized gains and losses on available-for-sale securities | (39 | ) | — | (17 | ) | (22 | ) | 39 | (39 | ) | |||||||||||||
Other comprehensive income (loss) | 1,966 | 8 | (17 | ) | 432 | (423 | ) | 1,966 | |||||||||||||||
Comprehensive income (loss) attributable to Westmoreland Coal Company | $ | 4,183 | $ | 4,841 | $ | 8,823 | $ | 1,540 | $ | (15,204 | ) | $ | 4,183 |
Parent/Issuer | Co-Issuer | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Consolidating Adjustments | Total | ||||||||||||||||||
Net income (loss) | $ | (13,646 | ) | $ | (1,757 | ) | $ | 7,516 | $ | (3,551 | ) | $ | (2,208 | ) | $ | (13,646 | ) | ||||||
Other comprehensive income (loss) | |||||||||||||||||||||||
Amortization of accumulated actuarial gains or losses, pension | 729 | 5 | — | 186 | (191 | ) | 729 | ||||||||||||||||
Amortization of accumulated actuarial gains or losses, transition obligations, and prior service costs, postretirement medical benefit | 643 | — | — | 243 | (243 | ) | 643 | ||||||||||||||||
Tax effect of other comprehensive income gains | (471 | ) | — | — | — | — | (471 | ) | |||||||||||||||
Unrealized and realized gains and losses on available-for-sale securities | (154 | ) | — | — | — | — | (154 | ) | |||||||||||||||
Other comprehensive income (loss) | 747 | 5 | — | 429 | (434 | ) | 747 | ||||||||||||||||
Comprehensive income (loss) attributable to Westmoreland Coal Company | $ | (12,899 | ) | $ | (1,752 | ) | $ | 7,516 | $ | (3,122 | ) | $ | (2,642 | ) | $ | (12,899 | ) |
Parent/Issuer | Co-Issuer | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Consolidating Adjustments | Total | ||||||||||||||||||
Net income (loss) | $ | (1,870 | ) | $ | 3,829 | $ | 15,715 | $ | 2,251 | $ | (21,795 | ) | $ | (1,870 | ) | ||||||||
Other comprehensive income (loss) | |||||||||||||||||||||||
Amortization of accumulated actuarial gains or losses, pension | 1,745 | 14 | — | 433 | (447 | ) | 1,745 | ||||||||||||||||
Amortization of accumulated actuarial gains or losses, transition obligations, and prior service costs, postretirement medical benefit | 2,002 | — | — | 427 | (427 | ) | 2,002 | ||||||||||||||||
Unrealized and realized gains and losses on available-for-sale securities | (39 | ) | — | (17 | ) | (22 | ) | 39 | (39 | ) | |||||||||||||
Other comprehensive income (loss) | 3,708 | 14 | (17 | ) | 838 | (835 | ) | 3,708 | |||||||||||||||
Comprehensive income (loss) attributable to Westmoreland Coal Company | $ | 1,838 | $ | 3,843 | $ | 15,698 | $ | 3,089 | $ | (22,630 | ) | $ | 1,838 |
Parent/Issuer | Co-Issuer | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Consolidating Adjustments | Total | ||||||||||||||||||
Net income (loss) | $ | (13,868 | ) | $ | 1,026 | $ | 16,967 | $ | (4,615 | ) | $ | (13,378 | ) | $ | (13,868 | ) | |||||||
Other comprehensive income (loss) | |||||||||||||||||||||||
Amortization of accumulated actuarial gains or losses, pension | 1,458 | 10 | — | 372 | (382 | ) | 1,458 | ||||||||||||||||
Amortization of accumulated actuarial gains or losses, transition obligations, and prior service costs, postretirement medical benefit | 1,286 | — | — | 243 | (243 | ) | 1,286 | ||||||||||||||||
Tax effect of other comprehensive income gains | (975 | ) | — | — | — | — | (975 | ) | |||||||||||||||
Unrealized and realized gains and losses on available-for-sale securities | (223 | ) | — | 1 | (18 | ) | 17 | (223 | ) | ||||||||||||||
Other comprehensive income (loss) | 1,546 | 10 | 1 | 597 | (608 | ) | 1,546 | ||||||||||||||||
Comprehensive income (loss) attributable to Westmoreland Coal Company | $ | (12,322 | ) | $ | 1,036 | $ | 16,968 | $ | (4,018 | ) | $ | (13,986 | ) | $ | (12,322 | ) |
Statements of Cash Flows | Parent/ Issuer | Co-Issuer | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Consolidating Adjustments | Total | ||||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||||||
Net income (loss) | $ | (1,870 | ) | $ | 3,829 | $ | 15,715 | $ | 2,251 | $ | (21,795 | ) | $ | (1,870 | ) | |||||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||||||||||||||||||
Equity in income of subsidiaries | 26,198 | — | — | — | (26,198 | ) | — | |||||||||||||||||
Depreciation, depletion, and amortization | 187 | 5,082 | 10,478 | 14,076 | — | 29,823 | ||||||||||||||||||
Accretion of asset retirement obligation and receivable | — | 32 | 2,096 | 4,210 | — | 6,338 | ||||||||||||||||||
Amortization of intangible assets and liabilities, net | — | 311 | — | 15 | — | 326 | ||||||||||||||||||
Share-based compensation | 1,292 | 23 | 822 | 1,634 | — | 3,771 | ||||||||||||||||||
Gain on sale of assets | — | — | (147 | ) | (161 | ) | — | (308 | ) | |||||||||||||||
Amortization of deferred financing costs | 1,541 | — | 21 | 294 | — | 1,856 | ||||||||||||||||||
Loss on extinguishment of debt | 64 | — | — | — | — | 64 | ||||||||||||||||||
Gain on sales of investment securities | — | — | (6 | ) | (22 | ) | — | (28 | ) | |||||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||||||||||
Receivables, net | (36 | ) | (1,995 | ) | 3,784 | 205 | 1,729 | 3,687 | ||||||||||||||||
Inventories | — | (1,632 | ) | 76 | (421 | ) | — | (1,977 | ) | |||||||||||||||
Excess of black lung benefit obligation over trust assets | (281 | ) | — | — | — | — | (281 | ) | ||||||||||||||||
Accounts payable and accrued expenses | (2,050 | ) | 4,102 | 1,028 | (1,173 | ) | (206 | ) | 1,701 | |||||||||||||||
Deferred revenue | — | (4,190 | ) | (2,718 | ) | 694 | — | (6,214 | ) | |||||||||||||||
Income tax payable | — | — | (1,679 | ) | 1,623 | — | (56 | ) | ||||||||||||||||
Accrual for workers’ compensation | (284 | ) | — | — | — | — | (284 | ) | ||||||||||||||||
Asset retirement obligations | — | — | (1,012 | ) | (4,412 | ) | — | (5,424 | ) | |||||||||||||||
Accrual for postretirement medical benefits | (40 | ) | — | 2,950 | 1,184 | — | 4,094 | |||||||||||||||||
Pension and SERP obligations | 695 | 9 | 294 | 519 | — | 1,517 | ||||||||||||||||||
Other assets and liabilities | (24 | ) | 101 | (5,887 | ) | 3,999 | — | (1,811 | ) | |||||||||||||||
Net cash provided by (used in) operating activities | 25,392 | 5,672 | 25,815 | 24,515 | (46,470 | ) | 34,924 | |||||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||||||
Distributions received from subsidiaries | 36,600 | — | — | — | (36,600 | ) | — | |||||||||||||||||
Additions to property, plant and equipment | (550 | ) | (698 | ) | (8,114 | ) | (4,105 | ) | — | (13,467 | ) | |||||||||||||
Change in restricted investments and bond collateral and reclamation deposits | (808 | ) | (5 | ) | (373 | ) | (7,528 | ) | — | (8,714 | ) |
Net proceeds from sales of assets | — | — | 323 | 254 | — | 577 | ||||||||||||||||||
Proceeds from the sale of investments | — | — | 308 | 6,499 | — | 6,807 | ||||||||||||||||||
Receivable from customer for property and equipment purchases | — | — | — | (308 | ) | — | (308 | ) | ||||||||||||||||
Net cash provided by (used in) investing activities | 35,242 | (703 | ) | (7,856 | ) | (5,188 | ) | (36,600 | ) | (15,105 | ) | |||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||||||
Change in book overdrafts | — | — | 715 | 1,062 | — | 1,777 | ||||||||||||||||||
Repayments of long-term debt | (500 | ) | — | (1,529 | ) | (14,041 | ) | — | (16,070 | ) | ||||||||||||||
Borrowings on revolving lines of credit | — | — | — | 6,000 | — | 6,000 | ||||||||||||||||||
Repayments on revolving lines of credit | — | — | — | (6,000 | ) | — | (6,000 | ) | ||||||||||||||||
Debt issuance costs and other refinancing costs | (26 | ) | — | — | (156 | ) | — | (182 | ) | |||||||||||||||
Dividends/distributions | (680 | ) | (9,000 | ) | (16,000 | ) | (11,600 | ) | 36,600 | (680 | ) | |||||||||||||
Transactions with Parent/affiliates | (58,599 | ) | (38 | ) | 3,963 | 8,204 | 46,470 | — | ||||||||||||||||
Net cash provided by (used in) financing activities | (59,805 | ) | (9,038 | ) | (12,851 | ) | (16,531 | ) | 83,070 | (15,155 | ) | |||||||||||||
Net increase (decrease) in cash and cash equivalents | 829 | (4,069 | ) | 5,108 | 2,796 | — | 4,664 | |||||||||||||||||
Cash and cash equivalents, beginning of year | 14,836 | 4,545 | 5,362 | 6,867 | — | 31,610 | ||||||||||||||||||
Cash and cash equivalents, end of year | $ | 15,665 | $ | 476 | $ | 10,470 | $ | 9,663 | $ | — | $ | 36,274 |
Statements of Cash Flows | Parent/ Issuer | Co-Issuer | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Consolidating Adjustments | Total | ||||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||||||
Net income (loss) | $ | (13,868 | ) | $ | 1,026 | $ | 16,967 | $ | (4,615 | ) | $ | (13,378 | ) | $ | (13,868 | ) | ||||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||||||||||||||||||
Equity in income of subsidiaries | 14,215 | — | — | — | (14,215 | ) | — | |||||||||||||||||
Depreciation, depletion, and amortization | 213 | 5,021 | 8,651 | 13,124 | — | 27,009 | ||||||||||||||||||
Accretion of asset retirement obligation and receivable | — | 29 | 1,943 | 4,024 | — | 5,996 | ||||||||||||||||||
Amortization of intangible assets and liabilities, net | — | 311 | — | 14 | — | 325 | ||||||||||||||||||
Non-cash tax benefits | (975 | ) | — | — | — | — | (975 | ) | ||||||||||||||||
Share-based compensation | 1,429 | 24 | 290 | 1,718 | — | 3,461 | ||||||||||||||||||
Loss on sale of assets | — | — | — | 277 | — | 277 | ||||||||||||||||||
Amortization of deferred financing costs | 1,316 | — | 178 | 318 | — | 1,812 | ||||||||||||||||||
Gain on sales of investment securities | (190 | ) | — | — | — | — | (190 | ) | ||||||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||||||||||
Receivables, net | 58 | 5,764 | (13,121 | ) | (4,096 | ) | 4,470 | (6,925 | ) | |||||||||||||||
Inventories | — | (722 | ) | 379 | (363 | ) | — | (706 | ) | |||||||||||||||
Excess of black lung benefit obligation over trust assets | 1,168 | — | — | — | — | 1,168 | ||||||||||||||||||
Accounts payable and accrued expenses | 5,044 | 440 | 9,661 | (1,981 | ) | (4,315 | ) | 8,849 | ||||||||||||||||
Deferred revenue | — | (4,003 | ) | (1,841 | ) | 1,117 | — | (4,727 | ) | |||||||||||||||
Accrual for workers’ compensation | (158 | ) | — | — | — | — | (158 | ) | ||||||||||||||||
Asset retirement obligations | — | — | (306 | ) | (3,816 | ) | — | (4,122 | ) | |||||||||||||||
Accrual for postretirement medical benefits | (482 | ) | — | 2,182 | 1,042 | — | 2,742 | |||||||||||||||||
Pension and SERP obligations | 617 | 5 | 322 | 427 | — | 1,371 | ||||||||||||||||||
Other assets and liabilities | (35 | ) | 113 | 3,444 | (946 | ) | — | 2,576 | ||||||||||||||||
Net cash provided by (used in) operating activities | 8,352 | 8,008 | 28,749 | 6,244 | (27,438 | ) | 23,915 | |||||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||||||
Distributions received from subsidiaries | 11,000 | — | — | — | (11,000 | ) | — | |||||||||||||||||
Additions to property, plant and equipment | (30 | ) | (1,912 | ) | (3,367 | ) | (6,672 | ) | — | (11,981 | ) | |||||||||||||
Change in restricted investments and bond collateral and reclamation deposits | (2,440 | ) | (3 | ) | (24,789 | ) | (375 | ) | — | (27,607 | ) | |||||||||||||
Cash payments related to acquisitions and other | 4,000 | — | (76,522 | ) | — | — | (72,522 | ) | ||||||||||||||||
Net proceeds from sales of assets | — | — | 20 | 71 | — | 91 |
Proceeds from the sale of investments | 1,581 | — | — | — | — | 1,581 | ||||||||||||||||||
Receivable from customer for property and equipment purchases | — | — | — | (183 | ) | — | (183 | ) | ||||||||||||||||
Net cash provided by (used in) investing activities | 14,111 | (1,915 | ) | (104,658 | ) | (7,159 | ) | (11,000 | ) | (110,621 | ) | |||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||||||
Change in book overdrafts | — | (259 | ) | — | 1,154 | — | 895 | |||||||||||||||||
Borrowings from long-term debt | 119,364 | — | — | — | — | 119,364 | ||||||||||||||||||
Repayments of long-term debt | — | — | (1,221 | ) | (9,633 | ) | — | (10,854 | ) | |||||||||||||||
Borrowings on revolving lines of credit | — | — | — | 3,000 | — | 3,000 | ||||||||||||||||||
Repayments on revolving lines of credit | — | — | — | (3,000 | ) | — | (3,000 | ) | ||||||||||||||||
Debt issuance costs and other refinancing costs | (5,472 | ) | — | — | — | — | (5,472 | ) | ||||||||||||||||
Dividends/distributions | (680 | ) | (3,500 | ) | — | (7,500 | ) | 11,000 | (680 | ) | ||||||||||||||
Transactions with Parent/affiliates | (127,957 | ) | 67 | 85,132 | 15,320 | 27,438 | — | |||||||||||||||||
Net cash provided by (used in) financing activities | (14,745 | ) | (3,692 | ) | 83,911 | (659 | ) | 38,438 | 103,253 | |||||||||||||||
Net increase (decrease) in cash and cash equivalents | 7,718 | 2,401 | 8,002 | (1,574 | ) | — | 16,547 | |||||||||||||||||
Cash and cash equivalents, beginning of year | 26,141 | 6 | 143 | 4,493 | — | 30,783 | ||||||||||||||||||
Cash and cash equivalents, end of year | $ | 33,859 | $ | 2,407 | $ | 8,145 | $ | 2,919 | $ | — | $ | 47,330 |
ITEM 2 | — MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS. |
• | risks associated with our estimated postretirement medical benefit and pension obligations, including those we assumed in the Kemmerer acquisition, and the impact of regulatory changes on those obligations; |
• | changes in our black lung obligations, changes in our experience related to black lung claims, and the impact of the Patient Protection and Affordable Care Act; |
• | our potential inability to maintain compliance with debt covenant requirements; |
• | competition with natural gas and other non-coal energy resources, which may be increased as a result of energy policies, regulations and subsidies or other government incentives that encourage or mandate use of alternative energy sources; |
• | coal-fired power plant capacity, including the impact of environmental regulations, energy policies and other factors that may cause utilities to phase out or close existing coal-fired power plants or reduce construction of any new coal-fired power plants; |
• | railroad, export terminal capacity and other transportation performance, costs and availability; |
• | the potential inability of our subsidiaries to pay dividends to us due to restrictions in our debt arrangements, reductions in planned coal deliveries or other business factors; |
• | our potential inability to enter into new coal supply agreements with existing customers due to the unfavorable result of competitive bid processes or the shutdown of a power facility due to new environmental legislation or regulations; |
• | risks associated with the structure of Westmoreland Energy LLC’s and its subsidiaries, collectively referred to herein as ROVA, contracts with its coal suppliers and power purchaser, which could dramatically affect the overall profitability of ROVA; |
• | the effect of Environmental Protection Agency inquiries and regulations on the operations of ROVA and our customer's power facilities; |
• | the effect of prolonged maintenance or unplanned outages at our operations or those of our major power generating customers, including unplanned outages at our customers due to the impact of weather-related variances or catastrophic events; |
• | the potential that insurance proceeds from our business interruption claim relating to the unexpected shutdown of one of the Absaloka mine customers will not be sufficient to cover our losses associated with the business interruption; |
• | future legislation and changes in regulations, governmental policies and taxes, including those aimed at reducing emissions of elements such as mercury, sulfur dioxides, nitrogen oxides, particulate matter or greenhouse gases; and |
• | other factors that are described in “Risk Factors” in our 2012 Form 10-K and any subsequent quarterly filing on Form 10-Q |
Three Months Ended June 30, | ||||||||||||||
Increase / (Decrease) | ||||||||||||||
2013 | 2012 | $ | % | |||||||||||
(In millions) | ||||||||||||||
Revenues | $ | 162.5 | $ | 132.8 | $ | 29.7 | 22.4 | % | ||||||
Net income (loss) applicable to common shareholders | (0.6 | ) | (12.4 | ) | 11.8 | (95.2 | )% | |||||||
Adjusted EBITDA(1) | 32.0 | 14.6 | 17.4 | 119.2 | % |
(1) | Adjusted EBITDA , a non-GAAP measure, is defined and reconciled to net loss at the end of this “Results of Operations” section. |
Three Months Ended June 30, 2013 | |||
(In millions) | |||
Increase in our power segment operating income due to timing of a planned maintenance outage and fewer unplanned outages. | $ | 6.6 | |
Increase in our coal segment primarily due to stronger power demand, favorable weather conditions, and planned 2012 mine customer outages. | 4.0 | ||
Decrease in interest expense due to lower debt levels. | 1.0 | ||
Increase due to other factors | 0.2 | ||
Total | $ | 11.8 |
Three Months Ended June 30, | ||||||||||||||
Increase / (Decrease) | ||||||||||||||
2013 | 2012 | $ | % | |||||||||||
(In thousands, except per ton data) | ||||||||||||||
Revenues | $ | 139,337 | $ | 116,960 | $ | 22,377 | 19.1 | % | ||||||
Operating income | 13,076 | 5,018 | 8,058 | 160.6 | % | |||||||||
Adjusted EBITDA(1) | 29,667 | 20,337 | 9,330 | 45.9 | % | |||||||||
Tons sold—millions of equivalent tons | 5.7 | 3.9 | 1.8 | 46.2 | % |
(1) | Adjusted EBITDA, a non-GAAP measure, is defined and reconciled to net loss at the end of this “Results of Operations” section. |
Three Months Ended June 30, | ||||||||||||||
Increase / (Decrease) | ||||||||||||||
2013 | 2012 | $ | % | |||||||||||
(In thousands) | ||||||||||||||
Revenues | $ | 23,162 | $ | 15,882 | $ | 7,280 | 45.8 | % | ||||||
Operating income | 4,838 | (1,749 | ) | 6,587 | 376.6 | % | ||||||||
Adjusted EBITDA(1) | 7,573 | 959 | 6,614 | 689.7 | % | |||||||||
Megawatts hours | 421 | 287 | 134 | 46.7 | % |
(1) | Adjusted EBITDA, a non-GAAP measure, is defined and reconciled to net loss at the end of this “Results of Operations” section. |
Three Months Ended June 30, | ||||||||||||||
Increase / (Decrease) | ||||||||||||||
2013 | 2012 | $ | % | |||||||||||
(In thousands) | ||||||||||||||
Heritage segment operating expenses | $ | 3,530 | $ | 4,527 | $ | (997 | ) | (22.0 | )% |
Three Months Ended June 30, | ||||||||||||||
Increase / (Decrease) | ||||||||||||||
2013 | 2012 | $ | % | |||||||||||
(In thousands) | ||||||||||||||
Corporate segment operating expenses | $ | 2,409 | $ | 3,004 | $ | (595 | ) | (19.8 | )% |
Six Months Ended June 30, | ||||||||||||||
Increase / (Decrease) | ||||||||||||||
2013 | 2012 | $ | % | |||||||||||
(In millions) | ||||||||||||||
Revenues | $ | 323.9 | $ | 280.1 | $ | 43.8 | 15.6 | % | ||||||
Net income (loss) applicable to common shareholders | (3.3 | ) | (11.9 | ) | 8.6 | (72.3 | )% | |||||||
Adjusted EBITDA(1) | 57.7 | 41.9 | 15.8 | 37.7 | % |
(1) | Adjusted EBITDA , a non-GAAP measure, is defined and reconciled to net loss at the end of this “Results of Operations” section. |
Six Months Ended June 30, 2013 | |||
(In millions) | |||
Increase in our coal segment primarily due to stronger power demand, favorable weather conditions, and the Kemmerer acquisition. | $ | 5.2 | |
Increase in our power segment operating income due to fewer unplanned outages. | 2.8 | ||
Decrease in interest expense due to lower debt levels. | 0.7 | ||
Decrease due to other factors | (0.1 | ) | |
Total | $ | 8.6 |
Six Months Ended June 30, | ||||||||||||||
Increase / (Decrease) | ||||||||||||||
2013 | 2012 | $ | % | |||||||||||
(In thousands, except per ton data) | ||||||||||||||
Revenues | $ | 281,449 | $ | 243,474 | $ | 37,975 | 15.6 | % | ||||||
Operating income | 26,547 | 19,454 | 7,093 | 36.5 | % | |||||||||
Adjusted EBITDA(1) | 59,573 | 49,496 | 10,077 | 20.4 | % | |||||||||
Tons sold—millions of equivalent tons | 11.8 | 9.5 | 2.3 | 24.2 | % |
(1) | Adjusted EBITDA, a non-GAAP measure, is defined and reconciled to net loss at the end of this “Results of Operations” section. |
Six Months Ended June 30, | ||||||||||||||
Increase / (Decrease) | ||||||||||||||
2013 | 2012 | $ | % | |||||||||||
(In thousands) | ||||||||||||||
Revenues | $ | 42,498 | $ | 36,604 | $ | 5,894 | 16.1 | % | ||||||
Operating income | 3,837 | 1,042 | 2,795 | 268.2 | % | |||||||||
Adjusted EBITDA(1) | 9,282 | 6,426 | 2,856 | 44.4 | % | |||||||||
Megawatts hours | 761 | 660 | 101 | 15.3 | % |
(1) | Adjusted EBITDA, a non-GAAP measure, is defined and reconciled to net loss at the end of this “Results of Operations” section. |
Six Months Ended June 30, | ||||||||||||||
Increase / (Decrease) | ||||||||||||||
2013 | 2012 | $ | % | |||||||||||
(In thousands) | ||||||||||||||
Heritage segment operating expenses | $ | 7,705 | $ | 8,537 | $ | (832 | ) | (9.7 | )% |
Six Months Ended June 30, | ||||||||||||||
Increase / (Decrease) | ||||||||||||||
2013 | 2012 | $ | % | |||||||||||
(In thousands) | ||||||||||||||
Corporate segment operating expenses | $ | 4,968 | $ | 7,135 | $ | (2,167 | ) | (30.4 | )% |
• | 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; and |
• | help investors to more meaningfully evaluate and compare the results of our operations from period to period by removing the effect of our capital structure and asset base from our operating results. |
• | do not reflect our 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, our 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 our debt obligations. |
Three Months Ended June 30, | Six Months Ended June 30, | Year Ended December 31, | Twelve Months Ended June 30, | ||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2012 | 2013 | ||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Reconciliation of Adjusted EBITDA to Net loss | |||||||||||||||||||||||
Net income (loss) | $ | 2,217 | $ | (13,646 | ) | $ | (1,870 | ) | $ | (13,868 | ) | $ | (13,662 | ) | $ | (1,664 | ) | ||||||
Income tax expense (benefit) | 28 | (921 | ) | 55 | (914 | ) | 90 | 1,059 | |||||||||||||||
Other income | (130 | ) | (237 | ) | (198 | ) | (414 | ) | (723 | ) | (507 | ) | |||||||||||
Interest income | (280 | ) | (490 | ) | (577 | ) | (895 | ) | (1,496 | ) | (1,178 | ) | |||||||||||
Loss on extinguishment of debt | 64 | — | 64 | — | 1,986 | 2,050 | |||||||||||||||||
Interest expense | 10,076 | 11,032 | 20,236 | 20,915 | 42,677 | 41,998 | |||||||||||||||||
Depreciation, depletion and amortization | 15,397 | 13,720 | 29,823 | 27,009 | 57,145 | 59,959 | |||||||||||||||||
Accretion of ARO and receivable | 3,156 | 3,143 | 6,338 | 5,996 | 12,189 | 12,531 | |||||||||||||||||
Amortization of intangible assets and liabilities | 165 | 163 | 326 | 325 | 658 | 659 | |||||||||||||||||
EBITDA | 30,693 | 12,764 | 54,197 | 38,154 | 98,864 | 114,907 | |||||||||||||||||
(Gain)/loss on sale of assets | (74 | ) | 239 | (308 | ) | 277 | 528 | (57 | ) | ||||||||||||||
Share-based compensation | 1,385 | 1,559 | 3,771 | 3,461 | 6,040 | 6,350 | |||||||||||||||||
Adjusted EBITDA | $ | 32,004 | $ | 14,562 | $ | 57,660 | $ | 41,892 | $ | 105,432 | $ | 121,200 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
(In thousands) | |||||||||||||||
Adjusted EBITDA by Segment | |||||||||||||||
Coal | $ | 29,667 | $ | 20,337 | $ | 59,573 | $ | 49,496 | |||||||
Power | 7,573 | 959 | 9,282 | 6,426 | |||||||||||
Heritage | (3,530 | ) | (4,527 | ) | (7,705 | ) | (8,537 | ) | |||||||
Corporate | (1,706 | ) | (2,207 | ) | (3,490 | ) | (5,493 | ) | |||||||
Total | $ | 32,004 | $ | 14,562 | $ | 57,660 | $ | 41,892 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
(In thousands) | |||||||||||||||
Adjusted EBITDA | |||||||||||||||
Guarantor and Issuer | $ | 14,809 | $ | 9,014 | $ | 24,553 | $ | 23,316 | |||||||
Non-Guarantor | 17,195 | 5,548 | 33,107 | 18,576 | |||||||||||
Total | $ | 32,004 | $ | 14,562 | $ | 57,660 | $ | 41,892 |
June 30, | December 31, | ||||||
2013 | 2012 | ||||||
(In millions) | |||||||
Cash and cash equivalents | $ | 36.3 | $ | 31.6 | |||
WML revolving line of credit | 23.1 | 23.1 | |||||
Corporate revolving line of credit | 20.0 | 20.0 | |||||
Total | $ | 79.4 | $ | 74.7 |
2013 remaining | $ | 9.0 | |
2014 | 18.0 | ||
2015 | 20.0 | ||
2016 | 20.0 | ||
2017 | 22.0 | ||
2018 | 5.5 |
June 30, | December 31, | ||||||
2013 | 2012 | ||||||
(In millions) | |||||||
Gross debt | $ | 349.0 | $ | 361.0 | |||
Less: | |||||||
Cash and cash equivalents | 36.3 | 31.6 | |||||
WML debt reserve account | 13.1 | 13.1 | |||||
Net debt | $ | 299.6 | $ | 316.3 | |||
Adjusted EBITDA (for the twelve months ended) | $ | 121.2 | $ | 105.4 | |||
Gross leverage ratio | 2.88 | 3.43 | |||||
Net leverage ratio | 2.47 | 3.00 |
Six Months Ended June 30, | 2013 Remaining Expected Amounts | ||||||||||
2013 | 2012 | ||||||||||
(In millions) | |||||||||||
Postretirement medical benefits | $ | 6.0 | $ | 6.2 | $ | 7.2 | |||||
CBF premiums | 1.2 | 1.1 | 0.7 | ||||||||
Workers’ compensation benefits | 0.4 | 0.3 | 0.3 | ||||||||
Total heritage health payments | $ | 7.6 | $ | 7.6 | $ | 8.2 | |||||
Pension contributions | $ | — | $ | — | $ | 3.4 |
Six Months Ended June 30, | |||||||
2013 | 2012 | ||||||
(In thousands) | |||||||
Cash provided by (used in): | |||||||
Operating activities | $ | 34,924 | $ | 23,915 | |||
Investing activities | (15,105 | ) | (110,621 | ) | |||
Financing activities | (15,155 | ) | 103,253 |
ITEM 3 | — QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK. |
ITEM 4 | — CONTROLS AND PROCEDURES. |
ITEM 1 | — LEGAL PROCEEDINGS. |
ITEM 1A | — RISK FACTORS. |
ITEM 2 | — UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS. |
Period | Total Number of Shares Purchased(1) | Average Price Paid per Share | ||||
April 2, 2013 | 22,571 | $ | 11.42 |
(1) | Shares purchased as indicated in this table represent the withholding of a portion of restricted shares to cover taxes on vested restricted shares. |
ITEM 4 | — MINE SAFETY DISCLOSURE. |
ITEM 6 | — Exhibits |
WESTMORELAND COAL COMPANY | ||
Date: | July 26, 2013 | /s/ Kevin A. Paprzycki |
Kevin A. Paprzycki | ||
Chief Financial Officer and Treasurer (Principal Financial Officer and A Duly Authorized Officer) | ||
Date: | July 26, 2013 | /s/ Russell H. Werner |
Russell H. Werner | ||
Controller (Principal Accounting Officer and A Duly Authorized Officer) |
Incorporated by Reference | |||||||
Exhibit Number | Exhibit Description | Form | File Number | Exhibit | Filing Date | Filed Herewith | Submitted Herewith |
31.1 | Certification of Chief Executive Officer pursuant to Rule 13a-14(a) | X | |||||
31.2 | Certification of Chief Financial Officer pursuant to Rule 13a-14(a) | X | |||||
32 | Certifications of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350 | X | |||||
95.1 | Mine Safety Disclosure | X | |||||
101 | Interactive Data File (Form 10-Q for the quarterly period ended June 30, 2013 furnished in XBRL). Users of this data are advised in accordance with Rule 406T of Regulation S-T promulgated by the Securities and Exchange Commission that this Interactive Data File is deemed not filed or part of a registration statement or prospectus for purposes of sections 11 or 12 of the Securities Act of 1933, is deemed not filed for purposes of section 18 of the Securities Exchange Act of 1934, and otherwise is not subject to liability under these sections. The financial information contained in the XBRL-related documents is “unaudited” and “unreviewed.” | X |
1. | I have reviewed this Quarterly Report on Form 10-Q of Westmoreland Coal Company; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: | July 26, 2013 | /s/ Robert P. King |
Name: Robert P. King | ||
Title: Chief Executive Officer and President | ||
(Principal Executive Officer) |
1. | I have reviewed this Quarterly Report on Form 10-Q of Westmoreland Coal Company; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: | July 26, 2013 | /s/ Kevin A. Paprzycki |
Name: Kevin A. Paprzycki | ||
Title: Chief Financial Officer and Treasurer | ||
(Principal Financial Officer) |
Date: | July 26, 2013 | /s/ Robert P. King |
Name: Robert P. King | ||
Chief Executive Officer | ||
(Principal Executive Officer) |
Date: | July 26, 2013 | /s/ Kevin A. Paprzycki |
Name: Kevin A. Paprzycki | ||
Chief Financial Officer and Treasurer | ||
(Principal Financial Officer) |
Westmoreland Coal Company | |||||||||||||||||||||||
10-Q Safety Statistics | |||||||||||||||||||||||
Quarter Ending June 30, 2013 | |||||||||||||||||||||||
Received | Received | ||||||||||||||||||||||
Total | Notice of | Notice of | Legal | ||||||||||||||||||||
Section | Total Dollar | Number | Pattern of | Potential | Actions | Legal | Legal | ||||||||||||||||
Mine or | 104(d) | Value of | of | Violations | to Have | Pending | Actions | Actions | |||||||||||||||
Operating | Section | Section | Citations | Section | Section | MSHA | Mining | Under | Pattern | as of | Initiated | Resolved | |||||||||||
Name/MSHA | 104 S&S | 104(b) | and | 110(b)(2) | 107(a) | Assessments | Related | Section | Under | Last Day | During | During | |||||||||||
Identification | Citations | Orders | Orders | Violations | Orders | Proposed | Fatalities | (yes/no) | (yes/no) | of Period | Period | Period | |||||||||||
Number | (#)(1) | (#)(2) | (#)(3) | (#)(4) | (#)(5) | (#)(6) | (#)(7) | (#)(8) | (#)(8) | (#)(9) | (#)(9) | (#)(9) | |||||||||||
Rosebud Mine & Crusher Conveyor | |||||||||||||||||||||||
24-01747 | 4 | — | 2 | — | 1 | $ | — | — | No | No | 4 | — | — | ||||||||||
Absaloka Mine | |||||||||||||||||||||||
24-00910 | — | — | — | — | — | $ | 6,100 | — | No | No | 1 | 1 | — | ||||||||||
Savage Mine | |||||||||||||||||||||||
24-00106 | — | — | — | — | — | $ | — | — | No | No | — | — | — | ||||||||||
Jewett Mine | |||||||||||||||||||||||
41-03164 | 1 | — | — | — | — | $ | — | — | No | No | 2 | 1 | — | ||||||||||
Beulah Mine | |||||||||||||||||||||||
32-00043 | — | — | — | — | — | $ | — | — | No | No | — | — | — | ||||||||||
Kemmerer Mine | |||||||||||||||||||||||
48-00086 | 5 | — | — | — | — | $ | 6,591 | — | No | No | — | — | — |
(1) | Mine Act Section 104(a) citations are for alleged violations of mandatory health or safety standards that could significantly and substantially contribute to the cause and effect of a coal mine safety or health hazard. |
(2) | Mine Act Section 104(b) orders are for alleged failures to totally abate a citation within the period of time specified in the citation. |
(3) | Mine Act Section 104(d) citations and orders are for an alleged unwarrantable failure to comply with mandatory health or safety standards. |
(4) | Total number of flagrant violations issued under Section 110(b)(2) of the Mine Act. |
(5) | Mine Act Section 107(a) orders are for alleged conditions or practices that could reasonably be expected to cause death or serious physical harm before such condition or practice can be abated and result in orders of immediate withdrawal from the area of the mine affected by the condition. |
(6) | Total dollar value of MSHA assessments proposed during the quarter ended June 30, 2013. |
(7) | Total number of mining-related fatalities during the quarter ended June 30, 2013. |
(8) | Mine Act Section 104(e) written notices are for an alleged pattern of violations of mandatory health or safety standards that are of such nature as could have significantly and substantially contributed to the cause and effect of a coal mine health or safety hazard, or the potential to have such a pattern. |
(9) | Any pending legal action before the Federal Mine Safety and Health Review Commission (the “Commission”) involving a coal mine owned and operated by us. The number of legal actions pending as of June 30, 2013 that fall into each of the following categories is as follows: |
FAIR VALUE MEASUREMENTS
|
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. See Notes 5 and 9 for additional disclosures related to fair value measurements. Fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy, as defined below, gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs.
The table below sets forth, by level, the Company’s financial assets that are accounted for at fair value at June 30, 2013:
Long-term debt fair value estimates are based on observed prices for securities with an active trading market when available (Level 2) and otherwise using discount rate estimates based on interest rates as of June 30, 2013 (Level 3). The estimated fair values of the Company’s debt with fixed interest rates are as follows:
The Company’s non-recurring fair value measurements include asset retirement obligations (refer to Note 9) and the purchase price allocations for the fair value of assets and liabilities acquired through business combinations (refer to Note 2). The Company determines the estimated fair value of its asset retirement obligations by calculating the present value of estimated cash flows related to reclamation liabilities using level 3 inputs. The significant inputs used to calculate such liabilities includes estimates of costs to be incurred, the Company’s credit adjusted discount rate, inflation rates and estimated dates of reclamation. The asset retirement liability is accreted to its present value each period and the capitalized asset retirement cost is depleted using the units-of-production method. The fair value of assets and liabilities acquired through business combinations is calculated using a discounted-cash flow approach using level 3 inputs. Cash flow estimates require forecasts and assumptions for many years into the future for a variety of factors. |
HERITAGE HEALTH BENEFIT EXPENSES - Components of Costs of Benefits to Former Mining Operation Employees (Detail) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
|
Jun. 30, 2012
|
|
Heritage Health Benefit Expenses [Abstract] | ||||
Health care benefits | $ 3,089 | $ 2,874 | $ 6,266 | $ 5,677 |
Combined benefit fund payments | 576 | 561 | 1,152 | 1,121 |
Workers' compensation benefits | 117 | 140 | 232 | 261 |
Black lung benefits (credit) | (673) | 477 | (590) | 803 |
Total | $ 3,109 | $ 4,052 | $ 7,060 | $ 7,862 |
Consolidated Statements of Operations (USD $)
In Thousands, except Per Share data, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
|
Jun. 30, 2012
|
|
Income Statement [Abstract] | ||||
Revenues | $ 162,499 | $ 132,842 | $ 323,947 | $ 280,078 |
Costs, expenses and other: | ||||
Cost of sales | 130,528 | 111,078 | 260,949 | 222,817 |
Depreciation, depletion and amortization | 15,397 | 13,720 | 29,823 | 27,009 |
Selling and administrative | 11,969 | 12,933 | 23,855 | 25,492 |
Heritage health benefit expenses | 3,109 | 4,052 | 7,060 | 7,862 |
Loss (gain) on sales of assets | (74) | 239 | (308) | 277 |
Other operating income | (10,405) | (4,918) | (15,142) | (8,203) |
Total costs, expenses and other | 150,524 | 137,104 | 306,237 | 275,254 |
Operating income (loss) | 11,975 | (4,262) | 17,710 | 4,824 |
Other income (expense): | ||||
Interest expense | (10,076) | (11,032) | (20,236) | (20,915) |
Loss on extinguishment of debt | (64) | 0 | (64) | 0 |
Interest income | 280 | 490 | 577 | 895 |
Other income (loss) | 130 | 237 | 198 | 414 |
Total other income (expense) | (9,730) | (10,305) | (19,525) | (19,606) |
Loss before income taxes | 2,245 | (14,567) | (1,815) | (14,782) |
Income tax expense | 28 | (921) | 55 | (914) |
Net loss | 2,217 | (13,646) | (1,870) | (13,868) |
Less net loss attributable to noncontrolling interest | 2,499 | (1,563) | 797 | (2,643) |
Net loss attributable to the Parent company | (282) | (12,083) | (2,667) | (11,225) |
Less preferred stock dividend requirements | 340 | 340 | 680 | 680 |
Net loss applicable to common shareholders | $ (622) | $ (12,423) | $ (3,347) | $ (11,905) |
Net loss per share applicable to common shareholders: | ||||
Basic and diluted (in dollars per share) | $ (0.04) | $ (0.89) | $ (0.23) | $ (0.85) |
Weighted average number of common shares outstanding: | ||||
Basic and diluted (shares) | 14,495 | 13,991 | 14,389 | 13,926 |
ACCOUNTING POLICIES
|
6 Months Ended |
---|---|
Jun. 30, 2013
|
|
Accounting Policies [Abstract] | |
ACCOUNTING POLICIES | ACCOUNTING POLICIES Effective January 1, 2013, the Company adopted an accounting standards update which requires that companies present either in a single note or parenthetically on the face of the financial statements, the effect of significant amounts reclassified from each component of accumulated other comprehensive income based on its source and the income statement line items affected by the reclassification. If a component is not required to be reclassified to net income in its entirety, companies would instead cross reference to the related footnote for additional information. This accounting standards update is effective for interim and annual reporting periods beginning after December 15, 2012. |
ACCOUNTING POLICIES (Policies)
|
6 Months Ended |
---|---|
Jun. 30, 2013
|
|
Accounting Policies [Abstract] | |
Newly Adopted Accounting Pronouncements | Effective January 1, 2013, the Company adopted an accounting standards update which requires that companies present either in a single note or parenthetically on the face of the financial statements, the effect of significant amounts reclassified from each component of accumulated other comprehensive income based on its source and the income statement line items affected by the reclassification. If a component is not required to be reclassified to net income in its entirety, companies would instead cross reference to the related footnote for additional information. This accounting standards update is effective for interim and annual reporting periods beginning after December 15, 2012. |
SHARE-BASED COMPENSATION - Narrative (Details)
|
1 Months Ended | 6 Months Ended |
---|---|---|
Apr. 30, 2013
|
Jun. 30, 2013
|
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Annual equity award to non-employee directors | 7,000 | |
Restricted Stock Units (RSUs)
|
||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Period for recognition of unamortized compensation expense | 3 years | |
Grants in period | 54,730 | 103,730 |
Stock Options
|
||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expirations in period | 8,900 | |
Vesting Ratably Over Vesting Period [Member] | Restricted Stock Units (RSUs)
|
||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Grants in period | 27,366 | |
Award vesting period | 3 years | |
Performance Based [Member] | Restricted Stock Units (RSUs)
|
||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Grants in period | 27,364 | |
Award vesting period | 3 years |
ASSET RETIREMENT OBLIGATIONS, CONTRACTUAL THIRD-PARTY RECLAMATION RECEIVABLES, AND RECLAMATION DEPOSITS - Carrying Value and Estimated Fair Value of Reclamation Deposits (Detail) (USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2013
|
Dec. 31, 2012
|
---|---|---|
Asset Retirement Obligation [Line Items] | ||
Reclamation deposits | $ 73,744 | $ 72,718 |
Carrying Value
|
||
Asset Retirement Obligation [Line Items] | ||
Reclamation deposits | 73,744 | |
Carrying Value | Cash and cash equivalents | Level 1
|
||
Asset Retirement Obligation [Line Items] | ||
Reclamation deposits | 46,245 | |
Carrying Value | Held-to-maturity securities | Level 2
|
||
Asset Retirement Obligation [Line Items] | ||
Reclamation deposits | 12,194 | |
Carrying Value | Time deposits | Level 1
|
||
Asset Retirement Obligation [Line Items] | ||
Reclamation deposits | 14,289 | |
Carrying Value | Available-for-sale securities | Level 1
|
||
Asset Retirement Obligation [Line Items] | ||
Reclamation deposits | 1,016 | |
Fair Value
|
||
Asset Retirement Obligation [Line Items] | ||
Reclamation deposits | 74,482 | |
Fair Value | Cash and cash equivalents | Level 1
|
||
Asset Retirement Obligation [Line Items] | ||
Reclamation deposits | 46,245 | |
Fair Value | Held-to-maturity securities | Level 2
|
||
Asset Retirement Obligation [Line Items] | ||
Reclamation deposits | 12,932 | |
Fair Value | Time deposits | Level 1
|
||
Asset Retirement Obligation [Line Items] | ||
Reclamation deposits | 14,289 | |
Fair Value | Available-for-sale securities | Level 1
|
||
Asset Retirement Obligation [Line Items] | ||
Reclamation deposits | $ 1,016 |
STOCKHOLDERS' EQUITY AND ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
|
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Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
STOCKHOLDERS' EQUITY AND ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | SHAREHOLDERS’ EQUITY AND ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Preferred Stock The Company has outstanding Series A Convertible Exchangeable Preferred Stock on which cumulative dividends of $2.125 per share are payable quarterly. The Company has paid $0.7 million of preferred stock dividends during the first six months of 2013. Changes in Accumulated Other Comprehensive Income The following table reflects the changes in accumulated other comprehensive income (loss) by component:
The following table reflects the reclassifications out of accumulated other comprehensive income (loss) for the three and six months ended June 30, 2013 are as follows (in thousands):
____________________
|
LINES OF CREDIT AND LONG-TERM DEBT - Additional Information (Detail) (USD $)
|
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
|
Jun. 30, 2012
|
|
Revolving credit agreements: | ||||
Loss on extinguishment of debt | $ (64,000) | $ 0 | $ (64,000) | $ 0 |
Payments to purchase equipment under capital leases | 2,700,000 | |||
Principal amount of capital lease obligation extinguished | 2,500,000 | |||
Westmoreland Mining, LLC
|
||||
Revolving credit agreements: | ||||
Line of credit facility maximum borrowing capacity | 25,000,000 | 25,000,000 | ||
10.75% Senior Notes
|
||||
Debt Instrument [Line Items] | ||||
Stated interest rate (percent) | 10.75% | 10.75% | ||
Revolving credit agreements: | ||||
Repurchase of Senior Notes | 500,000 | |||
Principal amount of notes extinguished | 500,000 | |||
Loss on extinguishment of debt | 100,000 | |||
Revolving Credit Facility | Westmoreland Mining, LLC
|
||||
Revolving credit agreements: | ||||
Debt issuance costs capitalized | $ 200,000 |
ASSET RETIREMENT OBLIGATIONS, CONTRACTUAL THIRD-PARTY RECLAMATION RECEIVABLES, AND RECLAMATION DEPOSITS - Amortized Cost, Gross Unrealized Holding Gains and Losses and Fair Value of Held-to-Maturity Securities (Detail) (Reclamation Deposits [Member], USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2013
|
---|---|
Reclamation Deposits [Member]
|
|
Schedule of Held-to-maturity Securities [Line Items] | |
Amortized cost | $ 12,194 |
Gross unrealized holding gains | 811 |
Gross unrealized holding losses | (73) |
Fair value | $ 12,932 |
BASIS OF PRESENTATION (Details) (USD $)
|
1 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
May 30, 2013
|
Jun. 30, 2013
|
Jun. 30, 2013
|
Dec. 31, 2012
|
Jun. 30, 2013
Senior secured notes
|
Dec. 31, 2012
Senior secured notes
|
Jun. 30, 2013
Westmoreland Mining LLC (WML)
Senior secured notes
|
Jun. 30, 2013
Westmoreland Coal Company
Senior secured notes
|
Jun. 30, 2013
Other operating income
|
Jun. 30, 2012
Other operating income
|
Jun. 30, 2013
Other operating income
|
Jun. 30, 2012
Other operating income
|
|
Debt Instrument [Line Items] | ||||||||||||
Debt and Capital Lease Obligations | $ 349,036,000 | $ 349,036,000 | $ 360,989,000 | $ 251,500,000 | $ 252,000,000 | $ 94,500,000 | $ 251,500,000 | |||||
Percentage membership interest sold to third party | 99.00% | |||||||||||
Increase in other operating income and net income attributable to noncontrolling interest | 3,700,000 | 3,700,000 | ||||||||||
Business interruption insurance proceeds recorded in income | $ 6,500,000 | $ 5,500,000 | $ 11,300,000 | $ 8,600,000 |
RESTRICTED INVESTMENTS AND BOND COLLATERAL (Tables)
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Disclosure Restricted Investments and Bond Collateral [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of restricted investments and bond collateral | The Company’s restricted investments and bond collateral consist of the following:
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Carrying value and estimated fair value of restricted investments and bond collateral | The Company’s carrying value and estimated fair value of its restricted investments and bond collateral at June 30, 2013 are as follows:
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Amortized cost, gross unrealized holding gains and losses and fair value of held-to-maturity securities | The amortized cost, gross unrealized holding gains and fair value of held-to-maturity securities at June 30, 2013 is as follows (in thousands):
|
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Maturities of held-to-maturity securities | Maturities of held-to-maturity securities are as follows at June 30, 2013:
|
INVENTORIES (Tables)
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | Inventories consisted of the following:
|
RESTRICTED INVESTMENTS AND BOND COLLATERAL - Additional Information (Details) (Available For Sale Securities Held As Restricted Investments And Bond Collateral [Member], USD $)
In Millions, unless otherwise specified |
6 Months Ended |
---|---|
Jun. 30, 2013
|
|
Available For Sale Securities Held As Restricted Investments And Bond Collateral [Member]
|
|
Schedule of Available-for-sale Securities [Line Items] | |
Available-for-sale Securities, Gross Realized Gain (Loss) | $ 0.1 |
SHARE-BASED COMPENSATION (Tables)
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensation cost arising from share-based arrangements | The Company recognized compensation expense from share-based arrangements shown in the following table:
|
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Summary of Restricted Stock Unit activity | A summary of restricted stock award activity for six months ended June 30, 2013 is as follows:
____________________
|
ACQUISITION - Summary of Pro Forma Information (Detail) (USD $)
In Thousands, except Per Share data, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
|
Jun. 30, 2012
|
|
Total Revenues | ||||
As reported | $ 162,499 | $ 132,842 | $ 323,947 | $ 280,078 |
Pro forma | 294,191 | |||
Operating Income | ||||
As reported | 11,975 | (4,262) | 17,710 | 4,824 |
Pro forma | 7,098 | |||
Net loss applicable to common shareholders | ||||
As reported | (622) | (12,423) | (3,347) | (11,905) |
Pro forma | $ (10,843) | |||
Net loss per share applicable to common shareholders | ||||
As reported (in USD per share) | $ (0.04) | $ (0.89) | $ (0.23) | $ (0.85) |
Pro forma (in USD per share) | $ (0.78) |
POSTRETIREMENT MEDICAL BENEFITS AND PENSION - Postretirement Medicial Benefit Obligations Balance Sheet Disclosures (Details) (Postretirement Medical Benefits, USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
|
Jun. 30, 2012
|
|
Postretirement Medical Benefits
|
||||
Components of net periodic benefit cost: | ||||
Service cost | $ 1,109 | $ 888 | $ 2,218 | $ 1,540 |
Interest cost | 3,035 | 3,185 | 6,069 | 6,170 |
Amortization of deferred items | 1,001 | 643 | 2,003 | 1,286 |
Total net periodic benefit cost | $ 5,145 | $ 4,716 | $ 10,290 | $ 8,996 |
ASSET RETIREMENT OBLIGATIONS, CONTRACTUAL THIRD-PARTY RECLAMATION RECEIVABLES, AND RECLAMATION DEPOSITS (Tables)
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Asset Retirement Obligation Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of asset retirement obligations, contractual third-party reclamation receivables and reclamation deposits | The asset retirement obligation, contractual third-party reclamation receivable, and reclamation deposits for each of the Company’s mines and ROVA at June 30, 2013 are summarized below:
|
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Changes in Company's asset retirement obligations | Changes in the Company’s asset retirement obligations were as follows:
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Carrying value and estimated fair value of reclamation deposits | The Company’s carrying value and estimated fair value of its reclamation deposits at June 30, 2013 are as follows:
|
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Amortized cost, gross unrealized holding gains and losses and fair value of held-to-maturity securities | The amortized cost, gross unrealized holding gains and losses and fair value of held-to-maturity securities at June 30, 2013 are as follows (in thousands):
|
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Schedule of maturities of held-to-maturity investments | Maturities of held-to-maturity securities are as follows at June 30, 2013:
|
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Cost basis, gross unrealized holding gains and fair value of available-for-sale securities | The cost basis, gross unrealized holding gains and fair value of available-for-sale securities at June 30, 2013 are as follows (in thousands):
|
STOCKHOLDERS' EQUITY AND ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Additional Information (Detail) (USD $)
In Thousands, except Per Share data, unless otherwise specified |
6 Months Ended | |
---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
|
Class of Stock [Line Items] | ||
Preferred dividends paid | $ 680 | $ 680 |
Preferred Stock [Member]
|
||
Class of Stock [Line Items] | ||
Cumulative dividends paid on Series A Convertible Exchangeable Preferred Stock (in USD per share) | $ 2.125 |
STOCKHOLDERS' EQUITY AND ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Reclassifications out of Accumulated Other Comprehensive Income (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
|
Jun. 30, 2012
|
|||||||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||
Unrealized and realized gains and losses on available-for-sale securities | $ (39) | $ (154) | $ (39) | $ (223) | ||||||||
Available for sale securities
|
||||||||||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||
Unrealized and realized gains and losses on available-for-sale securities | (39) | (39) | ||||||||||
Defined benefit plans adjustment | Pension
|
||||||||||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||
Actuarial losses | 1,004 | [1],[2] | 1,745 | |||||||||
Defined benefit plans adjustment | Postretirement Medical Benefits
|
||||||||||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||
Prior service costs | (159) | [1],[3] | (319) | |||||||||
Actuarial losses | 1,160 | [1],[3] | 2,321 | |||||||||
Amortization of defined benefit pension and postretirement medical benefits | 1,001 | [1] | 2,002 | [1] | ||||||||
Interest income | Available for sale securities
|
||||||||||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||
Unrealized gains and losses on available-for sale securities | (27) | (27) | ||||||||||
Other income (loss) | Available for sale securities
|
||||||||||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||
Realized gains and losses on available-for sale securities | $ (12) | $ (12) | ||||||||||
|
RESTRICTED INVESTMENTS AND BOND COLLATERAL - Carrying Value and Estimated Fair Value of Restricted Investments and Bond Collateral (Detail) (USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2013
|
Dec. 31, 2012
|
---|---|---|
Investment [Line Items] | ||
Restricted investments and bond collateral | $ 88,079 | $ 87,209 |
Carrying Value
|
||
Investment [Line Items] | ||
Cash and cash equivalents | 59,830 | |
Time deposits | 8,439 | |
Held-to-maturity securities | 19,810 | |
Restricted investments and bond collateral | 88,079 | |
Fair Value
|
||
Investment [Line Items] | ||
Cash and cash equivalents | 59,830 | |
Time deposits | 8,439 | |
Held-to-maturity securities | 19,842 | |
Restricted investments and bond collateral | $ 88,111 |
BUSINESS SEGMENT INFORMATION - Summarized Financial Information by Segment (Detail) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
segments
|
Jun. 30, 2012
|
Dec. 31, 2012
|
|
Segment Reporting Information [Line Items] | |||||
Number of Reportable Segments | 4 | ||||
Revenues | $ 162,499 | $ 132,842 | $ 323,947 | $ 280,078 | |
Operating income (loss) | 11,975 | (4,262) | 17,710 | 4,824 | |
Depreciation, depletion and amortization | 15,397 | 13,720 | 29,823 | 27,009 | |
Total assets | 933,603 | 947,582 | 933,603 | 947,582 | 936,115 |
Capital expenditures | 8,166 | 7,561 | 13,467 | 11,981 | |
Coal Segment
|
|||||
Segment Reporting Information [Line Items] | |||||
Revenues | 139,337 | 116,960 | 281,449 | 243,474 | |
Operating income (loss) | 13,076 | 5,018 | 26,547 | 19,454 | |
Depreciation, depletion and amortization | 12,753 | 11,092 | 24,555 | 21,775 | |
Total assets | 699,556 | 695,688 | 699,556 | 695,688 | |
Capital expenditures | 7,209 | 6,102 | 12,219 | 10,038 | |
Power Segment
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Segment Reporting Information [Line Items] | |||||
Revenues | 23,162 | 15,882 | 42,498 | 36,604 | |
Operating income (loss) | 4,838 | (1,749) | 3,837 | 1,042 | |
Depreciation, depletion and amortization | 2,551 | 2,523 | 5,081 | 5,021 | |
Total assets | 183,855 | 188,143 | 183,855 | 188,143 | |
Capital expenditures | 564 | 1,401 | 698 | 1,912 | |
Heritage Segment
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Segment Reporting Information [Line Items] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Operating income (loss) | (3,530) | (4,527) | (7,705) | (8,537) | |
Depreciation, depletion and amortization | 0 | 0 | 0 | 0 | |
Total assets | 16,305 | 14,631 | 16,305 | 14,631 | |
Capital expenditures | 0 | 0 | 0 | 0 | |
Corporate Segment
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Segment Reporting Information [Line Items] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Operating income (loss) | (2,409) | (3,004) | (4,969) | (7,135) | |
Depreciation, depletion and amortization | 93 | 105 | 187 | 213 | |
Total assets | 33,887 | 49,120 | 33,887 | 49,120 | |
Capital expenditures | $ 393 | $ 58 | $ 550 | $ 31 |
ACQUISITION (Tables)
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6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of pro forma information | The following unaudited pro forma information has been prepared for illustrative purposes only and assumes the acquisition occurred on January 1, 2011. The unaudited pro forma results have been prepared based on estimates and assumptions, which the Company believes are reasonable, however, they are not necessarily indicative of the consolidated results of operations had the acquisition occurred on January 1, 2011, or of future results of operations.
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Consolidated Statements of Shareholders' Deficit (USD $)
In Thousands, except Share data |
Total
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Preferred Stock
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Common Stock
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Other Paid-in Capital
|
Accumulated Other Comprehensive Loss
|
Accumulated Deficit
|
Non-controlling Interest
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Beginning balance at Dec. 31, 2012 | $ (286,231) | $ 160 | $ 35,502 | $ 130,852 | $ (148,345) | $ (289,727) | $ (14,673) |
Beginning balance, shares at Dec. 31, 2012 | 159,960 | 14,201,411 | |||||
Preferred dividends declared | (680) | (680) | |||||
Common stock issued as compensation | 3,771 | 539 | 3,232 | ||||
Common stock issued as compensation, shares | 215,600 | ||||||
Issuance of restricted stock | (258) | 331 | (589) | ||||
Issuance of restricted stock, shares | 132,398 | ||||||
Net loss | (1,870) | (2,667) | 797 | ||||
Other comprehensive income | 3,708 | 3,708 | |||||
Ending balance at Jun. 30, 2013 | $ (281,560) | $ 160 | $ 36,372 | $ 133,495 | $ (144,637) | $ (293,074) | $ (13,876) |
Ending balance, shares at Jun. 30, 2013 | 159,960 | 14,549,409 |
BASIS OF PRESENTATION
|
6 Months Ended |
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Jun. 30, 2013
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Accounting Policies [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION The accompanying unaudited consolidated financial statements include accounts of Westmoreland Coal Company, or the Company, or Parent, and its subsidiaries and controlled entities. The Company’s current principal activities, all conducted within the United States, are the production and sale of coal from its mines in Montana, Wyoming, North Dakota and Texas, and the ownership of the Roanoke Valley power plants, or ROVA, in North Carolina. The Company’s activities are primarily conducted through wholly owned subsidiaries. All intercompany transactions and accounts have been eliminated in consolidation. The Company’s Kemmerer Mine is owned by its subsidiary Westmoreland Kemmerer, Inc., or Kemmerer. The Company’s Absaloka Mine is owned by its subsidiary Westmoreland Resources, Inc., or WRI. The right to mine coal at the Absaloka Mine has been subleased to an affiliated entity whose operations the Company controls. The Beulah, Jewett, Rosebud, and Savage Mines are owned through the Company’s subsidiary Westmoreland Mining LLC, or WML. The Company is subject to two major debt arrangements: (1) $94.5 million senior secured notes at WML that are collateralized by all assets of WML, Westmoreland Savage Corporation, or WSC, Western Energy Company, or WECO, and Dakota Westmoreland Corporation, or DWC; and (2) $251.5 million senior secured notes at the Parent level that are collateralized by the assets of the Parent, WRI, Kemmerer and ROVA. These quarterly consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012, or the 2012 Form 10-K. The accounting principles followed by the Company are set forth in the Notes to the Company’s consolidated financial statements in its 2012 Form 10-K. Most of the descriptions of the accounting principles and other footnote disclosures previously made have been omitted in this report so long as the interim information presented is not misleading. On May 30, 2013, WRI amended certain documents pertaining to a series of transactions that were originally entered into in October 2008 in order to enable WRI to take advantage of Indian Coal Production Tax Credits (ICTC) which it had not been able to fully utilize. The ICTC is provided under Section 45(e) of the Internal Revenue Code to producers of coal on Indian lands from facilities placed in service by January 1, 2009, if such coal is sold to unrelated parties. In January, 2013 the ICTC was extended one year to December 31, 2013. WRI's Absaloka Mine operates under a coal mineral lease with the Crow Tribe of Indians in Montana. To more fully realize the value of ICTC, Absaloka Coal, LLC, a variable interest entity consolidated by WRI, sold a 99% membership interest to a large East Coast financial institution (Investor). The Investor's share of Absaloka Coal, LLC's operations is reflected as Net income (loss) attributable to noncontrolling interest. The purpose of the amendments was to modify the contract mining fee mark up and the contingency adjustment and to change the per ton amount that Absaloka Coal, LLC pays Westmoreland Coal Sales Company (a subsidiary of Westmoreland Coal Company), all effective January 1, 2012. The amendments also extended the term of the transactions with the Investor to December 31, 2013 from the original expiration date of October 15, 2013. As a result, the Company recorded an increase of $3.7 million in Other operating income for each of the three and six month periods ended June 30, 2013 with a corresponding increase in Net income attributable to noncontrolling interest. There was no impact on Net loss applicable to common shareholders. The Company received business interruption insurance proceeds for the six months ended June 30, 2013 due to an explosion and subsequent fire at a customer’s facility. The Company recognizes income as business interruption losses are incurred and reimbursement is virtually assured. The Company reports this income in Other operating income and has recognized $6.5 million and $11.3 million of income for the three and six months ended June 30, 2013, respectively; and $5.5 million and $8.6 million of income for the three and six months ended June 30, 2012, respectively. The consolidated financial statements of the Company have been prepared in accordance with United States generally accepted accounting principles and require use of management’s estimates. The financial information contained in this Form 10-Q is unaudited, but reflects all adjustments, which are, in the opinion of management, necessary for a fair presentation of the financial information for the periods shown. Such adjustments are of a normal recurring nature. The results of operations for the six months ended June 30, 2013 are not necessarily indicative of results to be expected for the year ending December 31, 2013. Income Taxes The difference between the statutory income tax rate and the effective income tax rate is due to a change in the valuation allowance. |
INVENTORIES
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6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INVENTORIES | INVENTORIES Inventories consisted of the following:
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ACQUISITION
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6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACQUISITION | ACQUISITION On January 31, 2012, the Company, through Westmoreland Kemmerer, Inc., acquired from Chevron Mining Inc., a Missouri corporation, the Kemmerer surface coal mine, associated processing facilities and other related real and personal property assets located in Kemmerer, Wyoming and assumed certain liabilities related to the mine. The Company did not acquire working capital in the acquisition, other than inventory. During the second quarter of 2012, the Company revised its preliminary allocation of the purchase price for $2.2 million of deferred revenue. Adjustments to preliminary fair values are assumed to have been made as of the acquisition date. As a result, Revenues and Operating income for the first quarter of 2012 would have been higher and Net loss would have been lower by approximately $1.3 million. The results in the consolidated statements of operations for the six months ended June 30, 2012 reflect this adjustment. The remaining $0.9 million of deferred revenue was recognized as revenue in the second quarter of 2012. The following unaudited pro forma information has been prepared for illustrative purposes only and assumes the acquisition occurred on January 1, 2011. The unaudited pro forma results have been prepared based on estimates and assumptions, which the Company believes are reasonable, however, they are not necessarily indicative of the consolidated results of operations had the acquisition occurred on January 1, 2011, or of future results of operations.
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INVENTORIES (Detail) (USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2013
|
Dec. 31, 2012
|
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Inventory Disclosure [Abstract] | ||
Coal stockpiles | $ 1,074 | $ 989 |
Coal fuel inventories | 4,679 | 3,048 |
Materials and supplies | 35,071 | 34,954 |
Reserve for obsolete inventory | (1,113) | (1,257) |
Total | $ 39,711 | $ 37,734 |
LINES OF CREDIT AND LONG-TERM DEBT (Tables)
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6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Outstanding lines of credit and long-term debt | The amounts outstanding under the Company’s long-term debt consisted of the following as of the dates indicated:
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FAIR VALUE MEASUREMENTS (Tables)
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6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Summary of financial assets at fair value | The table below sets forth, by level, the Company’s financial assets that are accounted for at fair value at June 30, 2013:
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Estimated fair values of Company's debt | The estimated fair values of the Company’s debt with fixed interest rates are as follows:
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SUPPLEMENTAL CONSOLIDATING FINANCIAL INFORMATION (Tables)
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6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Text Block [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Consolidating Balance Sheet Information | CONSOLIDATING BALANCE SHEETS June 30, 2013 (In thousands)
CONSOLIDATING BALANCE SHEETS June 30, 2013 (In thousands)
CONSOLIDATING BALANCE SHEETS December 31, 2012 (In thousands)
CONSOLIDATING BALANCE SHEETS December 31, 2012 (In thousands)
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Supplemental Consolidating Statement of Operations Information | CONSOLIDATING STATEMENTS OF OPERATIONS Three Months Ended June 30, 2013 (In thousands)
CONSOLIDATING STATEMENTS OF OPERATIONS Three Months Ended June 30, 2012 (In thousands)
CONSOLIDATING STATEMENTS OF OPERATIONS Six Months Ended June 30, 2013 (In thousands)
CONSOLIDATING STATEMENTS OF OPERATIONS Six Months Ended June 30, 2012 (In thousands)
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Supplemental Consolidating Statements of Comprehensive Income (Loss) | CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) Three Months Ended June 30, 2013 (In thousands)
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) Three Months Ended June 30, 2012 (In thousands)
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) Six Months Ended June 30, 2013 (In thousands)
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) Six Months Ended June 30, 2012 (In thousands)
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Supplemental Consolidating Statement of Cash Flow Information | CONSOLIDATING STATEMENTS OF CASH FLOWS Six Months Ended June 30, 2013 (In thousands)
CONSOLIDATING STATEMENTS OF CASH FLOWS Six Months Ended June 30, 2012 (In thousands)
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BUSINESS SEGMENT INFORMATION - Reconciliation of Segment Operating Income to Income (Loss) (Detail) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
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Jun. 30, 2013
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Jun. 30, 2012
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Jun. 30, 2013
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Jun. 30, 2012
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Segment Reporting [Abstract] | ||||
Income (loss) from operations | $ 11,975 | $ (4,262) | $ 17,710 | $ 4,824 |
Loss on extinguishment of debt | (64) | 0 | (64) | 0 |
Interest expense | (10,076) | (11,032) | (20,236) | (20,915) |
Interest income | 280 | 490 | 577 | 895 |
Other income (loss) | 130 | 237 | 198 | 414 |
Loss before income taxes | $ 2,245 | $ (14,567) | $ (1,815) | $ (14,782) |
ASSET RETIREMENT OBLIGATIONS, CONTRACTUAL THIRD-PARTY RECLAMATION RECEIVABLES, AND RECLAMATION DEPOSITS - Changes in Company's Asset Retirement Obligations (Detail) (USD $)
In Thousands, unless otherwise specified |
6 Months Ended | ||
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Jun. 30, 2013
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Jun. 30, 2012
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Dec. 31, 2012
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Asset Retirement Obligation Disclosure [Abstract] | |||
Asset retirement obligations, beginning of period (including current portion) | $ 263,847 | $ 247,478 | |
Accretion | 10,951 | 10,856 | |
Liabilities settled | (11,647) | (8,744) | |
Changes due to amount and timing of reclamation | 0 | (4,757) | |
ARO acquired | 0 | 15,103 | |
Asset retirement obligations, end of period | 263,151 | 259,936 | |
Less current portion | (24,105) | (18,489) | (22,238) |
Asset retirement obligations, less current portion | $ 239,046 | $ 241,447 | $ 241,609 |