Westmoreland Coal Co (WLB, Financial) filed Quarterly Report for the period ended 2010-03-31.
Westmoreland Coal Co has a market cap of $125.62 million; its shares were traded at around $11.83 with and P/S ratio of 0.28. WLB is in the portfolios of Jim Simons of Renaissance Technologies LLC.
Our first quarter 2010 revenues increased to $126.4 million compared with $121.8 million in the first quarter of 2009. This increase was primarily driven by a $3.6 million increase in our coal segment revenues largely due to price increases under existing coal supply agreements and the start of new agreements; including the new cost-plus contract with our Rosebud Mine's Unit 1&2 buyers. In addition, our power segment revenues increased $1.0 million related to an increase in megawatt hours sold.
Our first quarter 2010 net loss applicable to common shareholders decreased to $3.2 million compared with a $5.6 million loss in the first quarter of 2009. Excluding the $4.8 million of first quarter 2010 expense and the $4.4 million of first quarter 2009 income discussed in Items that Affect Comparability of Our Results, our net loss decreased by $11.6 million. The primary factors, in aggregate, driving this decrease in net loss were:
A $5.0 million increase in our coal segment operating income. This increase was primarily driven by the price increases and new agreements described above and income from our Indian Coal Tax Credit monetization transaction; A $3.7 million decrease in heritage costs primarily due to the agreement we entered into to modernize the method by which prescription drugs are provided to our retirees and the elimination of postretirement medical benefits for our non-represented employees. In addition, our selling and administrative costs decreased due to significant expenses incurred in the first quarter of 2009 related to our heritage cost containment efforts. These decreases were offset with an unfavorable change in the valuation of our Black Lung liabilities due to changes in discount rates; A $1.2 million increase in our power segment operating income resulting primarily from increased megawatt hours sold and decreased maintenance expenses as a result of a planned outage which occurred in the first quarter of 2009; A $0.9 million favorable noncontrolling interest adjustment driven by losses from a partially owned consolidated subsidiary; and A $0.8 million increase in other income primarily due to gains on sales of securities during the first quarter of 2010. Coal Segment
Our coal segment's operating income was $7.4 million in the first quarter of 2010 compared to operating income of $2.3 million in the first quarter of 2009. This $5.0 million increase was primarily due to the price increases and new agreements described above and from $1.1 million of first quarter 2010 earnings recognized from our Indian Coal Production Tax Credit monetization transaction.
Our other expense for the first quarter of 2010 increased to $9.1 million compared with $1.3 million of expense for the first quarter of 2009. Excluding the $8.6 million impact of the fair value adjustment on derivative and related amortization of debt discount discussed in Items that Affect Comparability of Our Results, our other expense decreased $0.8 million. This decrease was primarily due to gains on sales of securities during the first quarter of 2010.
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Westmoreland Coal Co has a market cap of $125.62 million; its shares were traded at around $11.83 with and P/S ratio of 0.28. WLB is in the portfolios of Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
We recorded income of $4.0 million resulting from the mark-to-market accounting of the conversion feature in our convertible notes and a decrease in the value of our warrant offset with $0.2 million of interest expense of a related debt discount. We recorded an income tax benefit of $0.6 million related to a tax effect of other comprehensive income gains. 30Our first quarter 2010 revenues increased to $126.4 million compared with $121.8 million in the first quarter of 2009. This increase was primarily driven by a $3.6 million increase in our coal segment revenues largely due to price increases under existing coal supply agreements and the start of new agreements; including the new cost-plus contract with our Rosebud Mine's Unit 1&2 buyers. In addition, our power segment revenues increased $1.0 million related to an increase in megawatt hours sold.
Our first quarter 2010 net loss applicable to common shareholders decreased to $3.2 million compared with a $5.6 million loss in the first quarter of 2009. Excluding the $4.8 million of first quarter 2010 expense and the $4.4 million of first quarter 2009 income discussed in Items that Affect Comparability of Our Results, our net loss decreased by $11.6 million. The primary factors, in aggregate, driving this decrease in net loss were:
A $5.0 million increase in our coal segment operating income. This increase was primarily driven by the price increases and new agreements described above and income from our Indian Coal Tax Credit monetization transaction; A $3.7 million decrease in heritage costs primarily due to the agreement we entered into to modernize the method by which prescription drugs are provided to our retirees and the elimination of postretirement medical benefits for our non-represented employees. In addition, our selling and administrative costs decreased due to significant expenses incurred in the first quarter of 2009 related to our heritage cost containment efforts. These decreases were offset with an unfavorable change in the valuation of our Black Lung liabilities due to changes in discount rates; A $1.2 million increase in our power segment operating income resulting primarily from increased megawatt hours sold and decreased maintenance expenses as a result of a planned outage which occurred in the first quarter of 2009; A $0.9 million favorable noncontrolling interest adjustment driven by losses from a partially owned consolidated subsidiary; and A $0.8 million increase in other income primarily due to gains on sales of securities during the first quarter of 2010. Coal Segment
Our coal segment's operating income was $7.4 million in the first quarter of 2010 compared to operating income of $2.3 million in the first quarter of 2009. This $5.0 million increase was primarily due to the price increases and new agreements described above and from $1.1 million of first quarter 2010 earnings recognized from our Indian Coal Production Tax Credit monetization transaction.
Our other expense for the first quarter of 2010 increased to $9.1 million compared with $1.3 million of expense for the first quarter of 2009. Excluding the $8.6 million impact of the fair value adjustment on derivative and related amortization of debt discount discussed in Items that Affect Comparability of Our Results, our other expense decreased $0.8 million. This decrease was primarily due to gains on sales of securities during the first quarter of 2010.
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