Mark H. Tubb, 205-745-2627
William Stanhouse, 205-745-2664
Walter Energy Announces Fourth Quarter and Full Year 2014 Results
Full-Year 2014 Highlights: Reduced Met Coal Cash Cost of Sales Per Ton by 13%; Reduced SG&A Expenses by 28%; Capital Expenditures Totaled $93 million
Fourth Quarter 2014 Highlights: Reduced Met Coal Cash Cost of Sales Per Ton by 6%; Reduced SG&A Expenses by 23%; Capital Expenditures Totaled $23 million
Liquidity Totaled $481 million; Cash Improved by Over $200 Million Year-Over-Year
BIRMINGHAM, AL — Feb. 17, 2015 — Walter Energy, Inc. (NYSE:WLT), a leading, publicly traded “pure-play” producer of metallurgical (“met”) coal for the global steel industry, today announced results for the quarter and year ended December 31, 2014.
“We remain focused on improving our operational performance while implementing cost containment measures across our Company,” said Walt Scheller, Chief Executive Officer. “For the full year 2014, we aggressively reduced costs - both in operational and administrative areas - all while improving production efficiency at our mines; opportunistically restructured our balance sheet to enhance liquidity and provide additional financial flexibility; and ensured that our emphasis on safety remained paramount,” said Scheller. “As 2015 unfolds, we will maintain our focus on improving safety, increasing productivity and reducing costs.”
Full-Year 2014 Consolidated Financial Results
Walter Energy reported a net loss in 2014 of $470.6 million, or $7.10 per diluted share, compared with a net loss of $359.0 million, or $5.74 per diluted share, in 2013. Included in the Company's financial results are non-cash income tax charges and credits, restructuring and asset impairment costs, transportation take-or-pay costs, gains on the early extinguishment of debt and other items. Excluding these items, the adjusted net loss for 2014 was $449.8 million, or $6.79 per diluted share. The adjusted net loss for 2013 totaled $237.3 million, or $3.79 per diluted share.
Fourth Quarter 2014 Consolidated Financial Results
Walter Energy reported a net loss of $128.1 million, or $1.83 per diluted share, in the fourth quarter of 2014 compared with a net loss of $174.3 million, or $2.79 per diluted share, in the fourth quarter of 2013. Adjusted net loss for the fourth quarter of 2014 was $137.6 million, or $1.97 per diluted share, as compared with an adjusted net loss for the prior-year period of $63.6 million, or $1.02 per diluted share. A reconciliation of net loss to adjusted net loss is provided in the Company’s “Reconciliation of Non-GAAP Financial Measures” included with this release.
Consolidated revenues totaled $285.6 million, compared with $472.0 million in the fourth quarter of 2013, reflecting a decrease in average met coal selling prices of $25.19 per metric ton (“MT”) and a decline in met coal sales of 0.9 million metric tons (“MMTs”). Fourth quarter results also reflected a reduction in met coal cash cost of sales of $6.15 per ton and a 23% reduction in selling, general and administrative (“SG&A”) expenses.
The following information was filed by Walter Energy, Inc. (WLTGQ) on Tuesday, February 17, 2015 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.