BIRMINGHAM, AL -- (Marketwire) -- 02/20/13 -- Walter Energy Inc. (NYSE: WLT) (TSX: WLT), the world's leading, publicly traded "pure-play" producer of metallurgical (met) coal for the global steel industry, today announced results for the fourth quarter ended December 31, 2012 that reflect cost control initiatives, aggressive production management and disciplined capital spending, in light of significantly lower global pricing levels.
Revenues were $479 million in the fourth quarter of 2012, down from $703 million in the fourth quarter of 2011 primarily due to reduced demand and pricing for met coal. The realized price of met coal declined 39% compared with the fourth quarter of 2011. The Company reported a net loss for the quarter of $71 million or $1.13 loss per diluted share. This loss includes impairment and restructuring charges of $6.8 million primarily in connection with a reduction in spending at the Aberpergwm mine in the United Kingdom. Excluding these charges, adjusted net loss and adjusted earnings before interest, taxes, depreciation and amortization (adjusted EBITDA) for the quarter were $66 million and $7 million, respectively. Results for the quarter also included a $71 million tax benefit.
For the year, the Company recorded revenues of $2.4 billion and a net loss of $1.1 billion including impairment and restructuring charges of $1.1 billion. Excluding these charges, the Company's adjusted net income was $31 million and adjusted EBITDA was $412 million.
During 2012, the Company:
•Achieved record metallurgical coal production of 11.7* million metric tons (MMTs) •Improved cash cost per ton of production of met coal by 6% •Enhanced liquidity and extended its debt maturities by issuing $500 million of senior notes due 2020 •Improved the total reportable injury rate by 26% as compared with 2011
"Walter Energy made solid operational progress during 2012, in the face of challenging market conditions. We safely increased our production of met coal to a record 11.7* MMTs, strengthened our senior management team and put in place a highly competitive operating platform that reduced our cost of production," said Walter Scheller, Chief Executive Officer. "In the fourth quarter, we responded to the lower pricing and demand environment by executing the strategy announced last quarter to reconfigure our Canadian operations in order to lower production and reduce costs. Further, we reduced spending at the Aberpergwm mine in the United Kingdom."
Mr. Scheller continued, "Although there are clear signs of improving trends in global demand and pricing for met coal, our current outlook for 2013 remains cautious and we are focused on driving further efficiency in our business. We currently expect sales and production of met coal in 2013 to be in line with 2012. However, we are extremely well positioned to increase sales and production to capitalize on anticipated improvements in pricing and demand when market conditions warrant."
In the fourth quarter of 2012, Walter Energy produced 2.5 MMTs of met coal, down from a record third quarter 2012 production of 3.3 MMTs but an increase from the 2.3 MMTs produced in the fourth quarter of 2011.
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