Westmoreland Coal Company (WLB) saw its loss narrow to $7.55 million, or $0.41 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $110.18 million, or $6.10 a share.
Revenue during the quarter grew 14.95 percent to $392.74 million from $341.66 million in the previous year period. Gross margin for the quarter expanded 503 basis points over the previous year period to 25.66 percent. Operating margin for the quarter period stood at positive 5.76 percent as compared to a negative 35.60 percent for the previous year period.
Operating income for the quarter was $22.64 million, compared with an operating loss of $121.62 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $89.12 million compared with $59.20 million in the prior year period. At the same time, adjusted EBITDA margin improved 536 basis points in the quarter to 22.69 percent from 17.33 percent in the last year period.
Westmoreland's chief executive officer, Kevin Paprzycki, commented, "During 2016, we delivered on our two main commitments of maximizing free cash flow generation and reducing our debt position, which we achieved while reporting record adjusted EBITDA and free cash flow. This is a direct result of the resiliency of our business model and outstanding performance by our operators, despite an otherwise challenging market environment. We also took steps to significantly reduce the cash burn from our non-core assets, Coal Valley and ROVA, and to position them such that we are more aggressively pursuing strategic alternatives. As we look toward 2017, we remain focused on maximizing cash generation and strengthening our balance sheet, supported, in part, by the recent Capital Power prepayment, which provides additional financial flexibility to pursue our goals."
Operating cash flow improves significantly
Westmoreland Coal Company has generated cash of $151.93 million from operating activities during the year, up 233.47 percent or $106.37 million, when compared with the last year. The company has spent $155.69 million cash to meet investing activities during the year as against cash outgo of $70.80 million in the last year. It has incurred net capital expenditure of $38.44 million on net basis during the year, down 49.22 percent or $37.26 million from year ago.
Cash flow from financing activities was $40.12 million for the year, up 9.26 percent or $3.40 million, when compared with the last year.
Cash and cash equivalents stood at $60.08 million as on Dec. 31, 2016, up 161.96 percent or $37.15 million from $22.94 million on Dec. 31, 2015.
Debt moves up
Westmoreland Coal Company has witnessed an increase in total debt over the last one year. It stood at $1,109.07 million as on Dec. 31, 2016, up 8.71 percent or $88.89 million from $1,020.18 million on Dec. 31, 2015. Total debt was 69.98 percent of total assets as on Dec. 31, 2016, compared with 67.90 percent on Dec. 31, 2015.
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