Westmoreland Resource Partners, LP (NYSE:WMLP) ("WMLP") today
reported its results for the three and six months ended
June 30, 2015, which include:
- Adjusted EBITDA for the second quarter
2015 of $10.2 million, compared to $13.0 million in the second
quarter 2014.
- Distributable Cash Flow for the second
quarter 2015 of $2.5 million, down from $3.8 million in the second
quarter 2014.
- Westmoreland Resources GP, LLC, general
partner of WMLP, declared a cash distribution for all unitholders
and warrant unitholders of $0.20 per unit for its second quarter
ended June 30, 2015. The distribution will be paid on August
14, 2015, to all unitholders and warrant unitholders of record as
of the close of business on August 7, 2015.
- Achieved a reportable incident rate of
0.65, 38.0% of the national surface coal reportable rate of 1.71,
with no lost time.
Safety
During the three months ended June 30, 2015, WMLP continued
to maintain reportable and lost time incident rates significantly
below Appalachian Basin averages, as indicated in the table
below.
Three Months EndedJune 30,
2015
ReportableRate
Lost Time Rate
WMLP Mines 0.65 — National Surface Coal Average 1.71 1.19
Financial Results
Three Months Ended June 30,
2015 2014 Increase (Decrease)
(in thousands)
$ % Total Revenues $
59,515 $ 82,001 $ (22,486 ) (27.4 )% Net loss (6,392 ) (3,358 )
(3,034 ) (90.4 )% Adjusted EBITDA1 10,238 12,960 (2,722 ) (21.0 )%
Distributable Cash Flow2 2,512 3,833 (1,321 ) (34.5 )% Tons sold -
millions of equivalent tons 1.1 1.5 (0.4 ) (26.7 )%
1 The definition of Adjusted EBITDA, which is a non-GAAP
financial measure, and a reconciliation thereof to Net Loss, a
comparable GAAP financial measure, are included in a table
presented near the end of this press release.
2 Distributable cash flow is not defined in GAAP. Distributable
cash flow is presented because it is helpful to management,
industry analysts, investors, lenders and rating agencies in
assessing our financial performance. A reconciliation thereof to
Net Loss, a comparable GAAP financial measure, is included in a
table presented near the end of this press release.
We reported total revenues of $59.5 million for the three months
ended June 30, 2015, compared to $82.0 million for the three
months ended June 30, 2014. The decrease of $22.5 million was
principally due to decreased sales and production volumes following
the new, lower production plan for the Ohio mines. The decrease in
tons sold and produced resulted from a decrease in market
demand.
We reported net loss of $6.4 million for the three months ended
June 30, 2015, compared to $3.4 million for the three months
ended June 30, 2014. Additionally, we reported Adjusted EBITDA
of $10.2 million for the three months ended June 30, 2015,
compared to $13.0 million for the three months ended June 30,
2014. The average coal sales price per ton sold increased by $0.74
to $53.23 per ton sold in the three months ended June 30,
2015, compared to $52.49 per ton sold in the three months ended
June 30, 2014.
For the three months ended June 30, 2015 and 2014, our
consolidated results include items that affect comparability of our
results. The expense components of these items were as follows:
Three Months Ended
June 30, 2015 2014 (in
thousands) Restructuring expense $ 103 $ —
Kemmerer acquisition-related costs
1,128 — Impact $ 1,231 $ —
Restructuring Expense
Restructuring expense of $0.1 million for the three months ended
June 30, 2015, related to severance expenses incurred in the
closing of the corporate offices in Columbus, Ohio, and the
elimination of other nonessential roles.
Kemmerer Acquisition-Related Costs
In June 2015, we announced the acquisition of Westmoreland
Kemmerer LLC ("Kemmerer") from Westmoreland Coal Company. For the
three months ended June 30, 2015, we have incurred and
expensed $1.1 million in acquisition-related costs for various
legal and investment banking expenses.
Business Update
Cash Distribution
Westmoreland Resources GP, LLC, general partner of WMLP,
declared a cash distribution for all of our unitholders and warrant
unitholders of $0.20 per unit for its second quarter ended
June 30, 2015. The distribution will be paid on August 14,
2015, to all unitholders and warrant unitholders of record as of
the close of business on August 7, 2015.
This press release is intended to be a qualified notice under
Treasury Regulation Section 1.1446-4(b). Brokers and nominees
should treat one hundred percent (100.0%) of WMLP's distributions
to non-U.S. investors as being attributable to income that is
effectively connected with a United States trade or business.
Accordingly, WMLP's distributions to non-U.S. investors are subject
to federal income tax withholding at the highest applicable
effective tax rate.
Conference Call
A conference call regarding Westmoreland Resource Partners, LP's
2014 results will be held on July 24, 2015, at 10:00 a.m.
Eastern Time. Call-in numbers are:
Live Participant Dial In (Toll Free):
844-WCC-COAL (844-922-2625)Participant Dial In (International):
201-689-8584
About Westmoreland Resource Partners, LP
Westmoreland Resource Partners, LP is a low-cost producer of
high-value thermal coal in Northern Appalachia. It markets its coal
primarily to large electric utilities with coal-fired, base-load
scrubbed power plants under long-term coal sales contracts.
For more information about Westmoreland Resource Partners, LP
(NYSE:WMLP), please visit www.westmorelandmlp.com. Financial and
other information about the Partnership is routinely posted on and
accessible at www.westmorelandmlp.com.
Cautionary Note Regarding Forward-Looking Statements
Forward-looking statements are based on WMLP's current
expectations and assumptions regarding its business, the economy
and other future conditions. Because forward-looking statements
relate to the future, they are subject to inherent uncertainties,
risks and changes in circumstances that are difficult to predict.
Our actual results may differ materially from those contemplated by
the forward-looking statements, including WMLP's projections for
2015 performance. WMLP cautions you against relying on any of these
forward-looking statements. They are statements neither of
historical fact nor guarantees or assurances of future performance.
Important factors that could cause actual results to differ
materially from those in the forward-looking statements include
political, economic, business, competitive, market, weather and
regulatory conditions.
Any forward-looking statements made by WMLP in this news release
speak only as of the date on which it was made. WMLP undertakes no
obligation to publicly update any forward-looking statements,
whether as a result of new information, future developments or
otherwise, except as may be required by law.
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Westmoreland Resource Partners, LPKevin Paprzycki,
855-922-6463