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Westmoreland Reports Fourth Quarter and Full Year 2016 Results

Generates Record Adjusted EBITDA and Free Cash Flow

Provides 2017 Guidance

ENGLEWOOD, Colo., March 28, 2017 (GLOBE NEWSWIRE) -- Westmoreland Coal Company (Nasdaq:WLB) today reported its fourth quarter and full year 2016 financial results and provided its 2017 guidance.

2016 Results and Highlights:

Fourth Quarter:

  • Revenues of $392.7 million from 15.0 million tons sold
  • Net loss applicable to common shareholders of $7.6 million, or $0.41 per share
  • Record high quarterly adjusted EBITDA of $89.1 million

Full Year:

  • Revenues of $1.5 billion from 54.7 million tons sold
  • Net loss applicable to common shareholders of $27.1 million, or $1.47 per share, including a tax benefit
  • Record high annual adjusted EBITDA of $271.9 million
  • Cash flow provided by operating activities of $151.9 million
  • Higher-than-expected free cash flow of $112.6 million

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.”

Safety

Westmoreland’s commitment to safety in all aspects of its operations is again reflected in the safety metrics below.

Year Ended December 31, 2016
Reportable Rate Lost Time Rate
U.S. Surface Operations1.34 0.70
U.S. National Surface Average1.44 0.96
Percentage93% 73%
U.S. Underground Operations3.23 2.09
U.S. National Underground Average4.95 3.56
Percentage65% 59%
Canadian Operations2.82 0.89

Consolidated and Segment Results

Consolidated adjusted EBITDA for the fourth quarter was $89.1 million, an increase of 51% when compared with the fourth quarter of 2015. Consolidated adjusted EBITDA for 2016 was $271.9 million, an increase of 22% when compared to 2015. The acquisition of San Juan in the Coal - U.S. segment in early 2016 contributed meaningfully to an increase in consolidated adjusted EBITDA for both the fourth quarter and full year 2016. Increased revenue within the Coal - U.S. segment and solid execution on cost savings initiatives throughout the business, particularly within the Coal - U.S. and Coal - WMLP segments, also drove higher adjusted EBITDA in the fourth quarter and full year 2016. This was offset somewhat by lower net loan and lease receivable activity in the Coal - Canada segment. The restatement, described below, added consolidated adjusted EBITDA of $6.1 million to the full year 2016.

Cash Flow and Liquidity

Westmoreland’s free cash flow for 2016 was $112.6 million, driven by record adjusted EBITDA and successful working capital initiatives. Working capital added $30.1 million to free cash flow in 2016, of which $13.0 million was the direct result of the supply chain team's focus on inventory management. Also benefiting working capital was the timing of payables.

Free cash flow is the net of cash flow provided by operations of $151.9 million, less capital expenditures of $46.1 million, plus net cash collected under certain contracts for loan and lease receivables of $6.8 million. Included in cash flow provided by operations were cash uses for interest expense of $96.3 million and $32.5 million for asset retirement obligations.

During the year, Westmoreland added $37.1 million to its cash balances to end the year with cash on hand of $60.1 million. This cash increase was driven by free cash flow generation of $112.6 million; borrowings, net of repayments, of $49.9 million; and proceeds from asset sales of $7.7 million; partially offset by cash used for debt issuance of $8.8 million and net cash used to purchase San Juan of $121.0 million.

Gross debt plus capital lease obligations at December 31, 2016 totaled $1.1 billion. During 2016, repayments of long-term debt totaled $70.4 million. There was $36.3 million available to draw, net of letters of credit, on Westmoreland's revolving credit facility at December 31, 2016.

Restatement

On February 24, 2017, Westmoreland announced that it would restate its previously issued financial statements as a result of changes in accounting for its customer reclamation receivables. Westmoreland’s 2016 Form 10-K contains restated consolidated financial statements for the years ended December 31, 2015 and 2014, and all interim periods during 2016 and 2015.

2017 Full Year Guidance

Westmoreland’s 2017 Outlook is provided in the table below.

Commenting on the outlook for 2017, Mr. Paprzycki said, “Our 2017 outlook is similar to our 2016 expected performance as our resilient business model continues to yield consistent, predictable results.”

Key year-over-year changes impacting guidance include:

  • Of the total $52 million payment related to the Genesee Mine, as announced previously, approximately $40 million is incremental to adjusted EBITDA and free cash flow in 2017 compared to the amount Westmoreland expected to receive in the normal course of business during 2017.

  • Contract expirations (Jewett and Beulah), continued market softness in Ohio, a planned extended outage at a key customer, and a conservative view on weather resulting from the warm winter season thus far in 2017, are also expected to impact adjusted EBITDA, free cash flow and coal tons sold.

  • Westmoreland expects to generate strong cash flow again this year. In addition to the payment from Capital Power, free cash flow is expected to benefit from positive working capital and breakeven cash flow at Coal Valley. Westmoreland also expects to receive nearly $10 million from the release of ROVA cash collateral, which is not part of the free cash flow calculation, but is available for use in de-levering and other corporate purposes.

Guidance Summary 2017
Coal tons sold 40 - 50 million tons
Adjusted EBITDA $280 - $310 million
Free cash flow $115 - $140 million
Capital expenditures $40 - $50 million
Cash interest Approximately $95 million

Notes

Westmoreland presents certain non-GAAP financial measures including adjusted EBITDA and free cash flow that management believes provide meaningful supplemental information and provide meaningful comparability to prior periods. Reconciliations of non-GAAP to GAAP measures are presented in the accompanying tables.

Conference Call

Westmoreland Coal Company will host its earnings conference call on March 28, 2017, at 4:30 p.m. Eastern Time. A presentation, which will be reviewed during the call, will also be available at www.westmoreland.com.

Participants may join the call using the numbers below:

Toll Free: 1-844-WCC-COAL (844-922-2625)
International: 1-201-689-8584
Webcast: www.westmoreland.com/investors/investor-webcasts

A replay of the teleconference will be available until April 11, 2017 and can be accessed using the numbers below:

Replay: 1-877-481-4010 or 1-919-882-2331
Replay ID: 10238
Webcast: www.westmoreland.com/investors/investor-webcasts

About Westmoreland Coal Company

Westmoreland Coal Company is the oldest independent coal company in the United States. Westmoreland’s coal operations include surface coal mines in the United States and Canada, underground coal mines in Ohio and New Mexico, a char production facility, and a 50% interest in an activated carbon plant. Westmoreland also owns the general partner of and a majority interest in Westmoreland Resource Partners, LP, a publicly traded coal master limited partnership (NYSE:WMLP). Its power operations include ownership of the two-unit ROVA coal-fired power plants in North Carolina. For more information, visit www.westmoreland.com.

Cautionary Note Regarding Forward-Looking Statements

Forward-looking statements are based on Westmoreland’s current expectations and assumptions regarding its business, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Actual results may differ materially from those contemplated by the forward-looking statements. Westmoreland cautions you against relying on any of these forward-looking statements. They are statements neither of historical fact nor guarantees or assurances of future performance. Important factors that could cause actual results to differ materially from those in the forward-looking statements include political, economic, business, competitive, market, weather and regulatory conditions.

Any forward-looking statements made by Westmoreland in this news release speak only as of the date on which it was made. Westmoreland undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future developments or otherwise, except as may be required by law.

Westmoreland Coal Company and Subsidiaries
Summary Consolidated and Operating Segment Data (Unaudited)
Three Months Ended December 31,
Increase / (Decrease)
2016 2015
(As Restated)
$ %
(In thousands, except tons sold data)
Westmoreland Consolidated
Revenues$392,737 $341,664 $51,073 14.9%
Operating income (loss)22,641 (121,621) 144,262 *
Adjusted EBITDA89,115 59,205 29,910 50.5%
Tons sold - millions of equivalent tons15.0 12.6 2.4 19.0%
Coal - U.S.
Revenues$173,027 $125,593 $47,434 37.8%
Operating income (loss)(25,537) 2,483 (28,020) *
Adjusted EBITDA37,347 19,918 17,429 87.5%
Tons sold - millions of equivalent tons6.8 5.3 1.5 28.3%
Coal - Canada
Revenues$116,257 $113,290 $2,967 2.6%
Operating income18,184 16,531 1,653 10.0%
Adjusted EBITDA32,181 28,676 3,505 12.2%
Tons sold - millions of equivalent tons6.3 5.4 0.9 16.7%
Coal - WMLP
Revenues$86,072 $87,697 $(1,625) (1.9)%
Operating income6,376 940 5,436 578.3%
Adjusted EBITDA21,044 15,535 5,509 35.5%
Tons sold - millions of equivalent tons1.9 1.9 %
Power
Revenues$21,084 $20,422 $662 3.2%
Operating income (loss)32,301 (130,274) 162,575 *
Adjusted EBITDA5,854 3,895 1,959 50.3%

* Not meaningful


Westmoreland Coal Company and Subsidiaries
Summary Consolidated and Operating Segment Data (Unaudited)
Years Ended December 31,
Increase / (Decrease)
2016 2015
(As Restated)
$ %
(In thousands, except tons sold data)
Westmoreland Consolidated
Revenues$1,477,960 $1,419,518 $58,442 4.1%
Operating income (loss)38,130 (145,696) 183,826 *
Adjusted EBITDA271,855 222,832 49,023 22.0%
Tons sold - millions of equivalent tons54.7 53.3 1.4 2.6%
Coal - U.S.
Revenues$651,713 $552,745 $98,968 17.9%
Operating income (loss)(8,063) 2,213 (10,276) *
Adjusted EBITDA126,563 77,135 49,428 64.1%
Tons sold - millions of equivalent tons24.1 22.5 1.6 7.1%
Coal - Canada
Revenues$415,593 $430,416 $(14,823) (3.4)%
Operating income39,104 36,830 2,274 6.2%
Adjusted EBITDA88,423 105,744 (17,321) (16.4)%
Tons sold - millions of equivalent tons22.8 22.9 (0.1) (0.4)%
Coal - WMLP
Revenues$349,341 $388,605 $(39,264) (10.1)%
Operating income (loss)8,873 (5,211) 14,084 *
Adjusted EBITDA79,303 66,134 13,169 19.9%
Tons sold - millions of equivalent tons7.8 7.9 (0.1) (1.3)%
Power
Revenues$86,578 $84,423 $2,155 2.6%
Operating income (loss)28,535 (146,868) 175,403 *
Adjusted EBITDA3,626 743 2,883 388.0%

* Not meaningful

Westmoreland Coal Company and Subsidiaries
Consolidated Statements of Operations (Unaudited)
Three Months Ended December 31, Years Ended December 31,
2016 2015
(As Restated)
2016 2015
(As Restated)
(In thousands, except per share data) (In thousands, except per share data)
Revenues$392,737 $341,664 $1,477,960 $1,419,518
Cost, expenses and other:
Cost of sales291,952 271,167 1,156,687 1,175,849
Depreciation, depletion and amortization72,170 26,848 185,267 140,328
Selling and administrative27,893 24,189 108,560 95,554
Heritage health benefit expenses2,275 6,551 11,777 14,573
Loss (gain) on sales of assets245 2,718 (1,124) 4,866
Loss on impairment 136,210 136,210
Restructuring charges 656
Derivative (gain) loss(26,219) (1,130) (24,055) 5,587
Income from equity affiliates(1,464) (1,268) (5,591) (5,409)
Other operating loss (income)3,244 (2,000) 8,309 (3,000)
370,096 463,285 1,439,830 1,565,214
Operating income (loss)22,641 (121,621) 38,130 (145,696)
Other income (expense):
Interest expense(31,150) (26,597) (121,819) (101,311)
Loss on extinguishment of debt (5,385)
Interest income1,914 1,731 7,435 7,993
Gain (loss) on foreign exchange816 1,200 (715) 3,674
Other (expense) income(397) 658 38 1,740
(28,817) (23,008) (115,061) (93,289)
Loss before income taxes(6,176) (144,629) (76,931) (238,985)
Income tax expense (benefit)1,601 (33,848) (48,059) (19,890)
Net loss(7,777) (110,781) (28,872) (219,095)
Less net loss attributable to noncontrolling interest(226) (603) (1,771) (5,453)
Net loss attributable to the Parent company(7,551) (110,178) (27,101) (213,642)
Less preferred stock dividend requirements 3 3
Net loss applicable to common shareholders$(7,551) $(110,181) $(27,101) $(213,645)
Net loss per share applicable to common shareholders:
Basic and diluted$(0.41) $(6.10) $(1.47) $(11.93)
Weighted average number of common shares outstanding:
Basic and diluted18,571 18,062 18,486 17,905


Westmoreland Coal Company and Subsidiaries
Consolidated Balance Sheets (Unaudited)
December 31,
2016
December 31, 2015
(As Restated)
(In thousands)
Assets
Current assets:
Cash and cash equivalents$60,082 $22,936
Receivables:
Trade140,731 134,141
Loan and lease receivables5,867 6,157
Other13,261 11,627
159,859 151,925
Inventories125,515 122,156
Other current assets32,258 16,103
Total current assets377,714 313,120
Property, plant and equipment:
Land and mineral rights744,253 576,313
Plant and equipment873,685 790,677
1,617,938 1,366,990
Less accumulated depreciation, depletion and amortization782,417 620,148
Net property, plant and equipment835,521 746,842
Loan and lease receivables44,474 49,313
Advanced coal royalties18,722 19,781
Reclamation deposits74,362 77,364
Restricted investments and bond collateral144,913 140,807
Investment in joint venture26,951 27,374
Intangible assets, net of accumulated amortization of $4.6 million and $15.9 million at December 31, 2016 and December 31, 2015, respectively28,199 29,190
Other assets34,053 12,188
Total Assets$1,584,909 $1,415,979


Westmoreland Coal Company and Subsidiaries
Consolidated Balance Sheets (Continued) (Unaudited)
December 31,
2016
December 31, 2015
(As Restated)
(In thousands)
Liabilities and Shareholders’ Deficit
Current liabilities:
Current installments of long-term debt$86,272 $38,852
Revolving lines of credit 1,970
Accounts payable and accrued expenses:
Trade and other accrued liabilities142,233 109,985
Interest payable22,458 15,527
Production taxes44,995 46,895
Postretirement medical benefits14,892 13,855
Deferred revenue15,253 10,715
Asset retirement obligations32,207 40,571
Other current liabilities20,964 31,056
Total current liabilities379,274 309,426
Long-term debt, less current installments1,022,794 979,357
Workers’ compensation, less current portion4,499 5,068
Excess of black lung benefit obligation over trust assets17,594 17,220
Postretirement medical costs, less current portion308,709 285,518
Pension and SERP obligations, less current portion43,982 44,808
Deferred revenue, less current portion16,251 24,613
Asset retirement obligations, less current portion451,834 379,192
Intangible liabilities, net of accumulated amortization of $10.8 million at December 31, 2016 and $9.8 million at December 31, 2015, respectively2,402 3,470
Other liabilities27,687 30,208
Total liabilities2,275,026 2,078,880
Shareholders’ deficit:
Common stock of $0.01 par value
Authorized 30,000,000 shares; Issued and outstanding 18,570,642 shares at December 31, 2016 and 18,162,148 shares at December 31, 2015, respectively186 182
Other paid-in capital248,143 240,721
Accumulated other comprehensive loss(179,072) (174,270)
Accumulated deficit(757,367) (730,266)
Total shareholders’ deficit(688,110) (663,633)
Noncontrolling interests in consolidated subsidiaries(2,007) 732
Total deficit(690,117) (662,901)
Total Liabilities and Deficit$1,584,909 $1,415,979


Westmoreland Coal Company and Subsidiaries
Consolidated Statements of Cash Flows (Unaudited)
Years Ended December 31,
2016 2015
(As Restated)
(In thousands)
Cash flows from operating activities:
Net loss$(28,872) $(219,095)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation, depletion and amortization185,267 140,328
Accretion of asset retirement obligation40,423 38,892
Share-based compensation7,584 7,748
Non-cash interest expense9,215 6,857
Amortization of deferred financing costs11,537 10,601
Loss on extinguishment of debt 4,445
(Gain) loss on derivative instruments(24,055) 5,587
Loss (gain) on foreign exchange715 (3,674)
Loss on impairment 136,210
Income from equity affiliates(5,591) (5,409)
Distributions from equity affiliates6,914 7,057
Deferred income taxes benefit(46,142) (17,961)
Other(2,705) (146)
Changes in operating assets and liabilities:
Receivables(4,430) 1,987
Inventories13,033 1,800
Accounts payable and accrued expenses10,505 (5,447)
Interest payable5,131 (5,569)
Deferred revenue(7,370) (13,094)
Other assets and liabilities13,227 (19,613)
Asset retirement obligations(32,452) (25,942)
Net cash provided by operating activities151,934 45,562
Cash flows from investing activities:
Additions to property, plant and equipment(46,132) (77,921)
Change in restricted investments(1,238) (28,670)
Cash payments in escrow for future acquisitions 34,000
Cash payments related to acquisitions and other(120,992) (32,529)
Cash acquired related to acquisition, net 2,780
Proceeds from sales of assets7,695 2,224
Proceeds from the sale of restricted investments 15,532
Receipts from loan and lease receivables8,987 21,954
Payments related to loan and lease receivables(2,164) (5,654)
Other(1,850) (2,517)
Net cash used in investing activities(155,694) (70,801)
Cash flows from financing activities:
Borrowings from long-term debt, net of debt discount122,250 199,359
Repayments of long-term debt(70,370) (148,071)
Borrowings on revolving lines of credit423,500 201,746
Repayments on revolving lines of credit(425,500) (209,351)
Debt issuance costs and other refinancing costs(8,784) (8,132)
Proceeds from issuance of common shares
Other(974) 1,172
Net cash provided by financing activities40,122 36,723
Effect of exchange rate changes on cash784 (2,806)
Net increase in cash and cash equivalents37,146 8,678
Cash and cash equivalents, beginning of year22,936 14,258
Cash and cash equivalents, end of year$60,082 $22,936
Supplemental disclosures of cash flow information:
Cash paid for interest$96,290 $72,972
Cash paid for income taxes1,316 434
Non-cash transactions:
Accrued purchases of property and equipment6,496 3,766
Capital leases and other financing sources27,355 15,232

Westmoreland Coal Company and Subsidiaries
Non-GAAP Reconciliations (Unaudited)

The tables below show how the Company calculates and reconciles to the most directly comparable GAAP financial measures EBITDA, Adjusted EBITDA (including a breakdown by segment), and free cash flow.

EBITDA, Adjusted EBITDA, and free cash flow are supplemental measures of financial performance that are not required by, or presented in accordance with, GAAP. EBITDA, Adjusted EBITDA, and free cash flow are included in this news release because they are key metrics used by management to assess Westmoreland’s operating performance and as a basis for strategic planning and forecasting. Westmoreland believes that EBITDA, Adjusted EBITDA, and free cash flow are useful to an investor in evaluating the Company’s operating performance because these measures:

  • are used widely by investors to measure a company’s operating performance without regard to items excluded from the calculation of such terms, which can vary substantially from company to company depending upon accounting methods and book value of assets, capital structure and the method by which assets were acquired, among other factors;
  • are used by rating agencies, lenders and other parties to evaluate creditworthiness; and
  • help investors to more meaningfully evaluate and compare the results of Westmoreland’s operations from period to period by removing the effect of the Company’s capital structure and asset base from the Company’s operating results.

Neither EBITDA, Adjusted EBITDA, nor free cash flow are measures calculated in accordance with GAAP. The items excluded from EBITDA, Adjusted EBITDA, and free cash flow are significant in assessing Westmoreland’s operating results. EBITDA, Adjusted EBITDA, and free cash flow have limitations as analytical tools, and should not be considered in isolation from, or as a substitute for, analysis of the Company’s results as reported under GAAP.

Other companies in Westmoreland’s industry and in other industries may calculate EBITDA, Adjusted EBITDA, and free cash flow differently from the way that Westmoreland does, limiting their usefulness as comparative measures. Because of these limitations, EBITDA, Adjusted EBITDA, and free cash flow should not be considered as measures of discretionary cash available to the Company to invest in the growth of its business. Westmoreland compensates for these limitations by relying primarily on its GAAP results and using EBITDA, Adjusted EBITDA, and free cash flow only as supplemental data.

EBITDA and Adjusted EBITDA

EBITDA (earnings before interest expense, interest income, income taxes, depreciation, depletion, amortization and accretion expense) and Adjusted EBITDA are non-GAAP measures that do not reflect the Company’s cash expenditures, or future requirements for capital and major maintenance expenditures or contractual commitments; do not reflect income tax expenses or the cash requirements necessary to pay income taxes; do not reflect changes in, or cash requirements for, the Company’s working capital needs; and do not reflect the significant interest expense, or the cash requirements necessary to service interest or principal payments, on certain of the Company’s debt obligations. In addition, although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future and EBITDA and Adjusted EBITDA do not reflect any cash requirements for such replacements. Westmoreland considers Adjusted EBITDA to be useful because it reflects operating performance before the effects of certain non-cash items and other items that it believes are not indicative of core operations. The Company uses Adjusted EBITDA to assess operating performance.

Three Months Ended December 31, Years Ended December 31,
2016 2015
(As Restated)
2016 2015
(As Restated)
(In thousands)
Adjusted EBITDA by Segment
Coal - U.S.$37,347 $19,918 $126,563 $77,135
Coal - Canada32,181 28,676 88,423 105,744
Coal - WMLP21,044 15,535 79,303 66,134
Power5,854 3,895 3,626 743
Heritage(3,083) (6,897) (13,409) (15,596)
Corporate(4,228) (1,922) (12,651) (11,328)
Total$89,115 $59,205 $271,855 $222,832


Three Months Ended December 31, Year Ended December 31,
2016 2015
(As Restated)
2016 2015
(As Restated)
(In thousands)
Reconciliation of Net Loss to Adjusted EBITDA
Net loss$(7,777) $(110,781) $(28,872) $(219,095)
Income tax expense (benefit)1,601 (33,848) (48,059) (19,890)
Interest income(1,914) (1,731) (7,435) (7,993)
Interest expense31,150 26,597 121,819 101,311
Depreciation, depletion and amortization72,170 26,848 185,267 140,328
Accretion of ARO10,193 9,630 40,423 38,892
Amortization of intangible assets and liabilities(158) (254) (810) (1,010)
EBITDA$105,265 $(83,539) $262,333 $32,543
Restructuring charges 656
(Gain) loss on foreign exchange(816) (1,200) 715 (3,674)
Loss on impairment 136,210 136,210
Loss on extinguishment of debt 5,385
Acquisition-related costs (1) 1,489 568 5,959
Customer payments received under loan and lease receivables (2)5,095 2,876 13,064 27,128
Derivative loss (gain)(26,219) (1,130) (24,055) 5,587
Loss on sale/disposal of assets and other adjustments4,131 2,339 11,646 5,290
Share-based compensation1,659 2,160 7,584 7,748
Adjusted EBITDA$89,115 $59,205 $271,855 $222,832

_________________
(1) Includes the impact of cost of sales related to the sale of inventory written up to fair value in the acquisition of Westmoreland Resources GP, LLC, the general partner of WMLP.
(2) Represents a return of and on capital. These amounts are not included in operating income or operating cash flows, as the capital outlays are treated as loan and lease receivables but are included within Adjusted EBITDA so that the cash received by the Company is treated consistently with all other contracts within the Company that do not result in loan and lease receivable accounting.

Free Cash Flow

Free cash flow represents net cash provided by (used in) operating activities less additions to property, plant and equipment (“CAPEX” or “capital expenditures”) plus net customer payments received under loan and lease receivables. Free cash flow is a non-GAAP measure and should not be considered as an alternative to cash and cash equivalents, cash flow from operations, cash flow from investing activities, cash flow from financing activities, net income (loss) or any other measure of performance presented in accordance with GAAP. Free cash flow is intended to represent cash flow available to satisfy our debts, after giving consideration to those expenses required to maintain our assets and infrastructure. Accordingly, although free cash flow is not a measure of performance calculated in accordance with GAAP, the Company believes free cash flow is useful to investors because it allows analysts and others in the industry to assess performance, liquidity and ability to satisfy debt requirements.

Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow
Years Ended December 31,
2016 2015
(As Restated)
(In thousands)
Net cash provided by operating activities$151,934 $45,562
Less cash paid for property, plant and equipment(46,132) (77,921)
Plus net customer payments received under loan and lease receivables6,823 16,300
Free cash flow$112,625 $(16,059)

For further information please contact: Gary Kohn, Chief Financial Officer 1-720-354-4467 gkohn@westmoreland.com

Source:Westmoreland Coal Company