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* Inclusive of an approximate 200,000 favorable impact from the re-alignment of methodology for accounting for production between the US and Canada performed in the second quarter 2012."
WALTER ENERGY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME ($ in thousands, except per share and share amounts) Unaudited For the three months For the years ended December 31, ended December 31, ------------------------ ------------------------ 2012 2011(1) 2012 2011(1) ----------- ----------- ----------- -----------Revenues: Sales $ 473,347 $ 707,433 $ 2,381,760 $ 2,562,325 Miscellaneous income (loss) 5,437 (4,427) 18,135 9,033 ----------- ----------- ----------- ----------- 478,784 703,006 2,399,895 2,571,358 ----------- ----------- ----------- -----------Costs and expenses: Cost of sales (exclusive of depreciation and depletion) 430,608 455,888 1,796,991 1,561,112 Depreciation and depletion 92,720 72,709 316,232 230,681 Selling, general and administrative (2) 28,889 33,224 133,467 165,749 Postretirement benefits 13,213 10,011 52,852 40,385 Asset impairment and restructuring (3) 9,109 - 49,070 - Goodwill impairment (2,345) - 1,064,409 - ----------- ----------- ----------- ----------- 572,194 571,832 3,413,021 1,997,927 ----------- ----------- ----------- -----------Operating income (loss) (93,410) 131,174 (1,013,126) 573,431 Interest expense (49,640) (33,575) (139,356) (96,820) Interest income 73 250 804 606 Other income (loss) (4) 774 6,246 (13,081) 17,606 ----------- ----------- ----------- -----------Income (loss) from continuing operations before income tax expense (142,203) 104,095 (1,164,759) 494,823Income tax expense (benefit) (71,232) 23,843 (99,204) 131,225 ----------- ----------- ----------- -----------Income (loss) from continuing operations (70,971) 80,252 (1,065,555) 363,598Income from discontinued operations (5) - - 5,180 - ----------- ----------- ----------- -----------Net income (loss) $ (70,971) $ 80,252 $(1,060,375) $ 363,598 =========== =========== =========== ===========Basic income (loss) per share: Income (loss) from continuing operations $ (1.13) $ 1.29 $ (17.04) $ 6.03 Income from discontinued operations - - 0.08 - ----------- ----------- ----------- ----------- Net income (loss) $ (1.13) $ 1.29 $ (16.96) $ 6.03 =========== =========== =========== ===========Weighted average number of shares outstanding (6) 62,577,184 62,441,694 62,536,239 60,257,029 =========== =========== =========== ===========Diluted income (loss) per share: Income (loss) from continuing operations $ (1.13) $ 1.28 $ (17.04) $ 6.00 Income from discontinued operations - - 0.08 - ----------- ----------- ----------- ----------- Net income (loss) $ (1.13) $ 1.28 $ (16.96) $ 6.00 =========== =========== =========== ===========Weighted average number of diluted shares outstanding (6) 62,577,184 62,738,135 62,536,239 60,611,154 =========== =========== =========== ===========Comprehensive income (loss) $ (123,331) $ 17,449 $(1,101,749) $ 306,510 =========== =========== =========== ===========(1) Includes the results of Western Coal since the April 1, 2011 date of acquisition. Certain previously reported three months ended and year ended December 31, 2011 balances have been recast to reflect the effects of finalizing the allocation of the Western Coal purchase price during the 2012 first quarter. Previously reported three months ended net income decreased by $3.5 million and diluted earnings per share decreased by $0.06 per share. Previously reported year ended December 31, 2011 net income increased by $14.4 million and diluted earnings per share increased by $0.24 per share.(2) The year ended December 31, 2011 includes $23.2 million of costs associated with the acquisition of Western Coal.(3) The three months ended December 31, 2012 includes asset impairment and severance charges of $9.1 million in connection with plans to reduce development spending at the Aberpergwm underground mine in the U.K. and the year ended December 31, 2012 also includes an impairment charge of $40.0 million associated with the abandonment of a natural gas exploration project.(4) The year ended December 31, 2012 includes losses on the sale and remeasurement to fair value of equity investments. The year ended December 31, 2011 includes a gain recognized on April 1, 2011 of $20.6 million as a result of remeasuring to fair value Western Coal shares acquired from Audley Capital in January 2011, partially offset by a net loss on the sale and remeasurement to fair value of our other equity investments.(5) Discontinued operations includes the gain on the sale of our closed Kodiak operations, net of tax.(6) In periods of net loss, the number of shares used to calculate diluted earnings per share is the same as that used to calculate basic earnings per share.
