UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
____________________

FORM 8-K
____________________

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): May 9, 2017

__________________________________________

WESTMORELAND COAL COMPANY
(Exact Name of Registrant as Specified in Charter)
__________________________________________

Delaware
001-11155
23-1128670
(State or Other Jurisdiction
of Incorporation)
(Commission
File Number)
(I.R.S. Employer
Identification No.)

9540 South Maroon Circle,
Suite 300
Englewood, CO
80112
(Address of Principal Executive Offices)
(Zip Code)

Registrant's telephone number, including area code: (855) 922-6463

N/A
(Former Name or Former Address, if Changed Since Last Report)
__________________________________________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions ( see General Instruction A.2. below):

o    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o    Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
 
Emerging growth company  ☐
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐






Item 1.01.    Entry into a Material Definitive Agreement.

Tenth Amendment to Second Amended and Restated Loan and Security Agreement

On May 9, 2017, Westmoreland Coal Company (the “Company”) executed an amendment to its existing revolving credit facility (the “Revolver”) with The PrivateBank and Trust Company, as agent and as a lender, and East West Bank, as a lender ("Tenth Amendment"). The Tenth Amendment adjusted the Company's fixed charge coverage ratio calculation within the Revolver by further modifying the treatment of the accelerated repayment of the loan and lease receivable arrangement at our Genesee mine from March 24, 2017, and removing certain testing periods from the U.S. and Canadian fixed charge coverage ratio calculation so long as the Company meets certain liquidity requirements.

The above description of the Tenth Amendment is qualified in its entirety by reference to the terms of the Tenth Amendment, which is attached as Exhibit 10.1 to this Current Report on Form 8-K and incorporated herein by reference.


Item 2.02. Results of Operations and Financial Condition.

On May 15, 2017, the Company issued a press release announcing its financial results for the quarter ended March 31, 2017. A copy of this press release is attached hereto as Exhibit 99.1 and is incorporated by reference herein.

On May 15, 2017, beginning at 10:00 a.m. Eastern Time, the Company will host a conference call with investors to discuss the Company's financial and operating results for the quarter ended March 31, 2017. The conference call will be made available to the public via dial-in and webcast. In connection with the conference call, the Company published an investor presentation that included the slides furnished as Exhibit 99.2 to this Current Report on Form 8-K and incorporated by reference herein. The slides contained in Exhibit 99.2 are also posted on the Company's website at www.westmoreland.com.

The information in this Item 2.02 of the Current Report on Form 8-K and the exhibits attached hereto are being furnished and shall not be deemed “filed” for purpose of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.


Item 9.01. Financial Statements and Exhibits

(d) Exhibits
Exhibit No.
 
Description
 
 
 
10.1
 
Tenth Amendment to Second Amended and Restated Loan and Security Agreement dated May 9, 2017
99.1
 
Westmoreland Coal Company Press Release dated May 15, 2017
99.2
 
Westmoreland Coal Company Investor Presentation dated May 15, 2017







SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 
WESTMORELAND COAL COMPANY
 
 
 
 
 
 
Date: May 15, 2017
By:
/s/ Jennifer S. Grafton
 
 
Jennifer S. Grafton
Chief Administrative Officer, Chief Legal Officer and Secretary






EXHIBIT INDEX

Exhibit No.
 
Description
 
 
 
10.1
 
Tenth Amendment to Second Amended and Restated Loan and Security Agreement dated May 9, 2017
99.1
 
Westmoreland Coal Company Press Release dated May 15, 2017
99.2
 
Westmoreland Coal Company Investor Presentation dated May 15, 2017



EXHIBIT 10.1

TENTH AMENDMENT TO SECOND AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT
This TENTH AMENDMENT TO SECOND AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT , dated as of May 9, 2017 (this “ Amendment ”), is entered into by and among THE PRIVATEBANK AND TRUST COMPANY (in its individual capacity, “ PrivateBank ”), as administrative agent for the lenders (the “ Lenders ”) party to the Loan Agreement (as defined below) (in such capacity, together with its successors and assigns, the “ Administrative Agent ”), the Lenders, and each of WESTMORELAND COAL COMPANY, a Delaware corporation (“ Westmoreland Parent ”), WESTMORELAND ENERGY LLC, a Delaware limited liability company (“ Westmoreland Energy ”), WESTMORELAND – NORTH CAROLINA POWER, L.L.C., a Virginia limited liability company (“ Westmoreland NC ”), WEI-ROANOKE VALLEY, INC., a Delaware corporation (“ WEI ”), WESTMORELAND – ROANOKE VALLEY, L.P., a Delaware limited partnership (“ Westmoreland Roanoke ”), WESTMORELAND PARTNERS, a Virginia general partnership (“ Westmoreland Partners ”), WESTMORELAND RESOURCES, INC., a Delaware corporation (“ Westmoreland Resources ”), WESTMORELAND COAL SALES COMPANY, INC., a Delaware corporation (“ Coal Sales ”), WRI PARTNERS, INC., a Delaware corporation (“ WRI ”), WCC LAND HOLDING COMPANY, INC., a Delaware corporation (“ WCC ”), WESTMORELAND CANADA LLC, a Delaware limited liability company (“ WC LLC ”), WESTMORELAND ENERGY SERVICES, INC., a Delaware corporation (“ WES ”), WESTMORELAND MINING LLC, a Delaware limited liability company (“ WML ”), WESTERN ENERGY COMPANY, a Montana corporation (“ WECO ”), TEXAS WESTMORELAND COAL CO., a Montana corporation (“ TWCC ”), WESTMORELAND SAVAGE CORPORATION, a Delaware corporation (“ Savage ”), DAKOTA WESTMORELAND CORPORATION, a Delaware corporation (“ Dakota ”), and BUCKINGHAM COAL COMPANY, LLC, an Ohio limited liability company (“ Buckingham ”) and HAYSTACK COAL COMPANY, a Delaware corporation (“ Haystack ; together with Westmoreland Parent, Westmoreland Energy, Westmoreland NC, WEI, Westmoreland Roanoke, Westmoreland Partners, Westmoreland Resources, Coal Sales, WRI, WCC, WC LLC, WES, WML, WECO, TWCC, Savage, Dakota and Buckingham, each individually a “ US Borrower ” and collectively, the “ US Borrowers ”), WESTMORELAND CANADIAN INVESTMENTS L.P., a limited partnership organized and existing under the laws of the Province of Quebec (“ WC Investments ”), WESTMORELAND CANADA HOLDINGS, INC., a corporation organized and existing under the laws of the Province of Alberta (“ Westmoreland Canada ”), WESTMORELAND PRAIRIE RESOURCES INC., a corporation organized and existing under the laws of the Province of Alberta (“ WPR ”), and PRAIRIE MINES & ROYALTY ULC, an unlimited liability company organized under the laws of the Province of Alberta (“ PMRL ”; together with WC Investments, Westmoreland Canada and WPR, each individually a “ Canadian Borrower ” and collectively, the “ Canadian Borrowers ”), and WCC HOLDING B.V., a B.V. organized and existing under the laws of the Netherlands (“ WCC BV ”; together with the US Borrowers and the Canadian Borrowers, collectively, the “ Borrowers ”).
W I T N E S S E T H :
WHEREAS , the Borrowers, the Administrative Agent and the Lenders entered into a certain Second Amended and Restated Loan and Security Agreement dated as of December 16, 2014, as

 
 
 
 

EXHIBIT 10.1

amended by that certain Joinder and First Amendment to Second Amended and Restated Loan and Security Agreement dated March 26, 2015, that certain Consent and Second Amendment to Second Amended and Restated Loan and Security Agreement dated as of May 29, 2015, that certain Third Amendment to Second Amended and Restated Loan and Security Agreement dated as of December 31, 2015, that certain Consent and Fourth Amendment to Second Amended and Restated Loan and Security Agreement dated as of January 29, 2016, that certain Fifth Amendment to Second Amended and Restated Loan and Security Agreement dated as of May 3, 2016, that certain Sixth Amendment to Second Amended and Restated Loan and Security Agreement dated as of June 28, 2016, that certain Seventh Amendment to Second Amended and Restated Loan and Security Agreement dated as of September 30, 2016, that certain Eighth Amendment to Second Amended and Restated Loan and Security Agreement dated as of October 12, 2016 and that certain Consent and Ninth Amendment to Second Amended and Restated Loan and Security Agreement dated as of March 13, 2017 (as further amended, restated, supplemented or otherwise modified from time to time, the “ Loan Agreement ”) pursuant to which the Borrowers established certain financing arrangements with the Lenders; and
WHEREAS , the Lenders and the Borrowers desire to further amend the Loan Agreement in accordance with, and subject to the terms and conditions of, this Amendment.
NOW, THEREFORE , for and in consideration of the premises and mutual agreements herein contained and for the purposes of setting forth the terms and conditions of this Amendment, the parties, intending to be bound, hereby agree as follows:
Section 1. Incorporation of the Loan Agreement . All capitalized terms which are not defined hereunder shall have the same meanings as set forth in the Loan Agreement, and the Loan Agreement, to the extent not inconsistent with this Amendment, is incorporated herein by this reference as though the same were set forth in its entirety. To the extent any terms and provisions of the Loan Agreement or the other Loan Documents are inconsistent with the amendments set forth in Section 2 below, such terms and provisions shall be deemed superseded hereby. Except as specifically set forth herein, the Loan Agreement and the other Loan Documents shall remain in full force and effect and its provisions shall be binding on the parties hereto.
Section 2.      Amendments to the Loan Agreement .
(a)      Section 14.1 of the Loan Agreement is hereby amended and restated to read as follows:
“14.1    Fixed Charge Coverage.
14.1.1 US Consolidated Fixed Charge Coverage . Westmoreland Parent and its US Subsidiaries shall not permit the ratio of US EBITDA to US Fixed Charges for each period of four consecutive quarters to be less than 0.9:1.0 tested on the last day of each quarter. Notwithstanding the foregoing, (i) solely for the quarterly periods ended March 31, 2017, June 30, 2017, September 30, 2017, December 31, 2017 and March 31, 2018, US Consolidated Fixed

 
2
 


EXHIBIT 10.1

Charge Coverage will only be tested to the extent Excess Availability at such quarter end is less than $5,000,000, and (ii) US EBITDA may be increased by (a) the amount of Alternative Minimum Tax Credits, as defined by the U.S. Internal Code, received by the US Borrowers during any period of determination, not to exceed $3,000,000 in the aggregate and (b) the amount of unrestricted cash, free and clear of all liens, claims and encumbrances, which is transferred from BP Energy Company to Borrowers’ operating account on deposit with Administrative Agent relating to the ROVA power plant project in an amount not to exceed $10,000,000 in the aggregate at any time, which amount will be added to US EBITDA in the quarter in which such funds are received in the Borrowers’ operating account.
14.1.2 Canadian Consolidated Fixed Charge Coverage . The Canadian Borrowers shall not permit the ratio of Canadian EBITDA to Canadian Fixed Charges for each period of four consecutive quarters to be less than 0.9:1.0 tested on the last day of each quarter. Notwithstanding the foregoing, solely for the quarterly periods ended March 31, 2017, June 30, 2017, September 30, 2017, December 31, 2017 and March 31, 2018, Canadian Consolidated Fixed Charge Coverage will only be tested to the extent Excess Availability under the Canadian Revolving Loan Commitment at such quarter end is less than $5,000,000. Further, Canadian EBITDA may be increased by the amount of the payments received by PMRL from Capital Power L.P. in connection with amending the Genesee JV Agreement (the “ Accelerated Receivable Payment ”) in an amount of $52,595,000 to be allocated as an addition to Canadian EBITDA as follows: (i) up to $44,000,000 may be allocated to Canadian EBITDA during fiscal year 2017 across such calendar quarters as the Borrowers determine in their reasonable discretion and (ii) all remaining amounts not allocated to Canadian EBITDA during fiscal year 2017 may be allocated to Canadian EBITDA during the first quarter of fiscal year 2018.
14.1.3 Consolidated Fixed Charge Coverage . Westmoreland Parent, its US Subsidiaries and the Canadian Borrowers shall not permit the ratio of Consolidated EBITDA to Consolidated Fixed Charges for each period of four consecutive quarters to be less than 1.10:1.0 tested on the last day of each quarter beginning with the quarterly period ending June 30, 2016. Notwithstanding the foregoing, Consolidated EBITDA may be increased by (i) the amount of Alternative Minimum Tax Credits, as defined by the U.S. Internal Revenue Code, received by the US Borrowers during any period of determination, not to exceed $3,000,000, (ii) the amount of unrestricted cash, free and clear of all liens, claims and encumbrances,

 
3
 


EXHIBIT 10.1

which is transferred from BP Energy Company to Borrowers’ operating account on deposit with Administrative Agent relating to the ROVA power plant project in an amount not to exceed $10,000,000 in the aggregate at any time, which amount will be added to US EBITDA in the quarter in which such funds are received in the Borrowers’ operating account and (iii) the amount of the payments received by PMRL from Capital Power L.P. in connection with amending the Genesee JV Agreement in an amount of $52,595,000 to be allocated as an addition to Canadian EBITDA as follows: (i) up to $44,000,000 may be allocated to Canadian EBITDA during fiscal year 2017 across such calendar quarters as the Borrowers determine in their reasonable discretion and (ii) all remaining amounts not allocated to Canadian EBITDA during fiscal year 2017 may be allocated to Canadian EBITDA during the first quarter of fiscal year 2018.
Section 3.      Effectiveness Conditions . The amendments and other agreements set forth herein shall be effective upon the satisfaction of all of the following conditions precedent, each to the satisfaction of the Administrative Agent in its sole discretion:
(a)      Receipt by the Administrative Agent from each of the Lenders, the Administrative Agent and Borrowers, of a counterpart of this Amendment signed on behalf of such party;
(b)      Receipt by the Administrative Agent of the amendment fee set forth herein; and
(c)      Receipt by the Administrative Agent of such other documents, instruments and certificates as the Administrative Agent shall reasonably request.
Section 4.      Representations and Warranties; No Default .
(a)      The representations and warranties of the Borrowers set forth in Section 11 of the Loan Agreement shall be deemed made or remade, as applicable, by each Borrower as of the date hereof, and shall be true and correct in all material respects as of the date hereof except to the extent that such representation or warranty expressly relates to a specified earlier date, in which case such representation and warranty shall be true and correct in all material respects as of such earlier date; and
(b)      Each Borrower represents and warrants to the Administrative Agent and the Lenders that (i) the execution and delivery by such Borrower of this Amendment and the performance by it of the transactions herein contemplated (A) are and will be within its organizational powers, (B) have been authorized by all necessary organizational action and (C) are not and will not be in contravention of any order of any court or other agency of government, of law or any other indenture, agreement or contract to which such Borrower is a party or by which the property of such Borrower is bound, or be in violation of, result in a breach of, or constitute

 
4
 


EXHIBIT 10.1

with due notice and/or lapse of time a default under any such indenture, agreement or contract, which contravention, violation or breach would reasonably be expected to have a Material Adverse Effect or result in the imposition of any lien, charge or encumbrance of any nature on any of the properties of such Borrower (other than Permitted Liens) and (ii) No Default or Event of Default has occurred and is continuing.
Section 5.      Affirmation . Except as specifically amended pursuant to the terms hereof, the Loan Agreement and the other Loan Documents (and all covenants, terms, conditions and agreements therein), shall remain in full force and effect, and are hereby ratified and confirmed in all respects by the Borrowers. Each Borrower hereby represents and warrants to the Administrative Agent and the Lenders that as of the date hereof, there are no claims, counterclaims, offsets or defenses arising out of or with respect to the Obligations. Each Borrower hereby confirms its existing grant to the Administrative Agent, for its benefit and the benefit of the Lenders, of a lien on and security interest in the Collateral. Each Borrower hereby reaffirms that all liens and security interests at any time granted by it to the Administrative Agent, for its benefit and the benefit of the Lenders, continue in full force and effect and secure and shall continue to secure the Obligations. Nothing herein contained is intended to in any manner impair or limit the validity, priority and extent of the Administrative Agent’s existing security interest in and liens upon the Collateral. Any and all references to the Loan Agreement in each of the Loan Documents shall be deemed to refer to and include this Amendment.
Section 6.      Fees and Expenses . Each Borrower agrees to comply with Section 4.3.4 of the Loan Agreement, in connection with the evaluation, negotiation, preparation, execution and delivery of this Amendment. In addition to the foregoing, the Borrowers agree to pay to the Administrative Agent an amendment fee of $50,000 to be allocated to the Lenders in accordance with their Pro Rata Share of the Commitments
Section 7.      Miscellaneous .
(a)      Each Borrower hereby agrees to take all such actions and to execute and/or deliver to the Administrative Agent all such documents, assignments, financing statements and other documents as the Administrative Agent may reasonably require from time to time, to effectuate and implement the purposes of this Amendment and the other Loan Documents.
(b)      This Amendment shall be binding on and shall inure to the benefit of the Borrowers, the Administrative Agent, the Lenders and their respective successors and (to the extent permitted under the Loan Agreement) assigns. No rights are intended to be created hereunder for the benefit of any third-party donee, creditor or incidental beneficiary.
(c)      Wherever possible, each provision of this Amendment shall be interpreted in such a manner as to be effective and valid under applicable law, but if any provision of this Amendment shall be prohibited by or invalid under applicable law, such provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions of this Amendment.

 
5
 


EXHIBIT 10.1

(d)      The headings of any paragraph of this Amendment are for convenience only and shall not be used to interpret any provision hereof.
(e)      This Amendment may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same agreement. Execution and delivery by facsimile or other electronic transmission shall bind the undersigned. Receipt of an executed signature page to this Amendment by facsimile or other electronic transmission shall constitute effective delivery thereof and shall be deemed an original signature hereunder.
(f)      No modification hereof or any agreement referred to herein shall be binding or enforceable unless in writing and signed on behalf of the party against whom enforcement is sought.
(g)      The terms and conditions of this Amendment shall be governed by and construed in accordance with the internal laws of the State of Illinois excluding conflict of laws statutes or common law principles that would result in the application of laws other than the internal laws of the State of Illinois.
(h)      EACH OF THE BORROWERS, THE ADMINISTRATIVE AGENT AND THE LENDERS, BY THE EXECUTION OR ACCEPTANCE OF THIS AMENDMENT, WAIVES ITS AND THEIR RIGHT TO TRIAL BY JURY IN ANY ACTION, SUIT OR PROCEEDING OR COUNTERCLAIM OF ANY KIND ARISING OUT OF OR RELATED TO THIS AMENDMENT, ANY OF THE OTHER LOAN DOCUMENTS, THE OBLIGATIONS OR THE COLLATERAL.
[SIGNATURE PAGES FOLLOW]


 
6
 


(Signature Page to Tenth Amendment to
Second Amended and Restated Loan and Security Agreement)


IN WITNESS WHEREOF , the parties hereto have duly executed this Tenth Amendment to Second Amended and Restated Loan and Security Agreement as of the date first above written.
US BORROWERS:
WESTMORELAND COAL COMPANY ,   a Delaware corporation
By:     /s/ Jennifer S. Grafton            
Jennifer S. Grafton
Chief Administrative Officer & Secretary
 
WESTMORELAND ENERGY LLC ,   a Delaware limited liability company
By:     /s/ Samuel N. Hagreen      
   Samuel N. Hagreen  
   Secretary
 
WESTMORELAND – NORTH CAROLINA POWER, L.L.C. , a Virginia limited liability company
By:     /s/ Samuel N. Hagreen      
   Samuel N. Hagreen  
   Secretary
 
WEI-ROANOKE VALLEY, INC. ,   a Delaware corporation
By:     /s/ Samuel N. Hagreen      
   Samuel N. Hagreen  
   Secretary
 
WESTMORELAND – ROANOKE VALLEY, L.P. ,   a Delaware limited partnership
   By: WEI-Roanoke Valley, Inc.,  
its general partner
By:   /s/ Samuel N. Hagreen         
       Samuel N. Hagreen  
       Secretary

 
 
 


(Signature Page to Tenth Amendment to
Second Amended and Restated Loan and Security Agreement)


US BORROWERS:
WESTMORELAND PARTNERS ,   a Virginia general partnership
By: Westmoreland-Roanoke Valley, L.P., its general partner
   By: WEI-Roanoke Valley, Inc.,  
its general partner
   By:   /s/ Samuel N. Hagreen         
              Samuel N. Hagreen  
              Secretary  
By: Westmoreland-North Carolina Power, L.L.C., its general partner
By:   /s/ Samuel N. Hagreen         
        Samuel N. Hagreen  
        Secretary
 
WESTMORELAND RESOURCES, INC. ,   a Delaware corporation
By:     /s/ Samuel N. Hagreen      
   Samuel N. Hagreen  
   Secretary
 
WESTMORELAND COAL SALES COMPANY, INC. ,   a Delaware corporation
By:     /s/ Samuel N. Hagreen      
   Samuel N. Hagreen  
   Secretary
 
WRI PARTNERS, INC. ,   a Delaware corporation
By:     /s/ Samuel N. Hagreen      
   Samuel N. Hagreen  
   Secretary
US BORROWERS:
WCC LAND HOLDING COMPANY,   INC. , a Delaware corporation
By:     /s/ Samuel N. Hagreen      
   Samuel N. Hagreen  
   Secretary

 
 
 


(Signature Page to Tenth Amendment to
Second Amended and Restated Loan and Security Agreement)


 
WESTMORELAND CANADA LLC ,   a Delaware limited liability company
By:      /s/ Jennifer S. Grafton      
   Jennifer S. Grafton  
   Vice President and Secretary
 
WESTMORELAND ENERGY SERVICES, INC. , a Delaware corporation
By:     /s/ Samuel N. Hagreen      
   Samuel N. Hagreen  
   Secretary
 
WESTMORELAND MINING LLC ,   a Delaware limited liability company
By:     /s/ Samuel N. Hagreen      
   Samuel N. Hagreen  
   Secretary
 
WESTERN ENERGY COMPANY ,   a Montana corporation
By:     /s/ Samuel N. Hagreen      
   Samuel N. Hagreen  
   Secretary
 
TEXAS WESTMORELAND COAL CO. ,   a Montana corporation
By:     /s/ Samuel N. Hagreen      
   Samuel N. Hagreen  
   Secretary
US BORROWERS:
WESTMORELAND SAVAGE CORPORATION , a Delaware corporation
By:     /s/ Samuel N. Hagreen      
   Samuel N. Hagreen  
   Secretary
 
DAKOTA WESTMORELAND CORPORATION ,   a Delaware corporation
By:     /s/ Samuel N. Hagreen      
   Samuel N. Hagreen  
   Secretary

 
 
 


(Signature Page to Tenth Amendment to
Second Amended and Restated Loan and Security Agreement)


 
BUCKINGHAM COAL COMPANY, LLC ,   an Ohio limited liability company
By:     /s/ Samuel N. Hagreen      
   Samuel N. Hagreen  
   Secretary
 
HAYSTACK COAL COMPANY ,   a Delaware corporation
By:     /s/ Samuel N. Hagreen      
Name: Samuel N. Hagreen      
Its:     Secretary    

CANADIAN BORROWERS:
WESTMORELAND CANADIAN INVESTMENTS, L.P. ,   a limited partnership organized and existing under the laws of the Province of Quebec
By: Westmoreland Canada LLC,  
its general partner
   By:    /s/ Jennifer S. Grafton         
        Jennifer S. Grafton  
        Vice President and Secretary
CANADIAN BORROWERS:
WESTMORELAND CANADA HOLDINGS, INC. ,   a corporation organized and existing under the laws of the Province of Alberta
By:      /s/ Jennifer S. Grafton      
   Jennifer S. Grafton  
   Assistant Secretary
 
WESTMORELAND PRAIRIE RESOURCES INC. ,   a corporation organized and existing under the laws of the Province of Alberta
By:     /s/ Jennifer S. Grafton      
   Jennifer S. Grafton  
   Assistant Secretary
 
PRAIRIE MINES & ROYALTY ULC ,   an unlimited liability company organized under the laws of the Province of Alberta
By:     /s/ Jennifer S. Grafton      
   Jennifer S. Grafton  
   Assistant Secretary

 
 
 


(Signature Page to Tenth Amendment to
Second Amended and Restated Loan and Security Agreement)



WCC BV:
WCC HOLDING B.V. ,   a B.V. organized and existing under the laws of the Netherlands
By:     /s/ Jennifer S. Grafton      
   Jennifer S. Grafton  
   Managing Director A
By:     /s/ Clemens Cornelis van den Broek      
   Clemens Cornelis van den Broek  
   Managing Director B



 
 
 


(Signature Page to Tenth Amendment to
Second Amended and Restated Loan and Security Agreement)



ADMINISTRATIVE AGENT
AND A LENDER:
THE PRIVATEBANK AND TRUST COMPANY
By:     /s/ Douglas Colletti      
   Douglas Colletti  
   Managing Director



 
 
 


(Signature Page to Tenth Amendment to
Second Amended and Restated Loan and Security Agreement)


LENDER:
EAST WEST BANK
By:     /s/John E. Kolb      
Name: John E. Kolb      
Its:
    Vice President    





 
 
 

EXHIBIT 99.1

WCCRELEASEA03.JPG

  News Release
 
 
Westmoreland Reports First Quarter 2017 Results; Reiterates Full-Year Guidance


Englewood, CO May 15, 2017 - Westmoreland Coal Company (Nasdaq:WLB) today reported financial results for the first quarter 2017 and reiterated its 2017 guidance .

First Quarter Highlights

Revenues of $339.7 million from 12.4 million tons sold
Net loss applicable to common shareholders of $36.8 million , or $1.98 per share
Adjusted EBITDA of $88.2 million , including approximately $47 million accelerated from the Capital Power payment
Cash flow used in operating activities of $0.7 million
Free cash flow of $42.6 million , which also includes the accelerated Capital Power payment

“We remain on track to achieve our full year guidance, despite a challenging first quarter," said Westmoreland Chief Executive Officer, Kevin Paprzycki. "Our adjusted EBITDA and cash flow were impacted during the quarter by low weather-related demand. We also performed dragline repairs and worked through some challenging parts of our mine plan. Our operators took proactive steps to minimize the impact of these headwinds, and I'm pleased that we now have these factors behind us. This quarter’s results demonstrate the resiliency of our model in that, despite an unusual set of challenges, we produced positive free cash flow.”

Safety

Westmoreland's safety metrics are below.
 
Three Months Ended March 31, 2017
 
Reportable Rate
 
Lost Time Rate
U.S. Surface Operations
1.82
 
1.51
U.S. National Surface Average
1.35
 
0.82
Percentage
135%
 
184%
 
 
 
 
U.S. Underground Operations
1.64
 
0.82
U.S. National Underground Average
4.95
 
3.56
Percentage
33%
 
23%
 
 
 
 
Canadian Operations
0.69
 
0.34

Consolidated and Segment Results

Consolidated adjusted EBITDA for the first quarter of 2017 was $88.2 million . As expected, revenue in the Coal-US segment was lower due to the expiration of the Jewett and Beulah coal supply contracts. Unfavorable weather also impacted all operating segments, particularly Coal -WMLP, where mild weather in Ohio added to the existing softness in price and demand. Heavy snowfall, followed by heavy rain, at the Kemmerer mine, lowered first quarter deliveries and increased costs. Operational challenges, including dragline repairs in Canada and temporary mining in a lower-yield area of certain mines in both the Coal - Canada and Coal - WMLP segments, drove lower sales and increased costs. Offsetting these declines was the effect of the early repayment of loan and lease receivables by Capital Power, of which approximately $47 million represented accelerated collections in the first quarter of 2017. Adjusted EBITDA also benefited from an additional month of San Juan operations compared with the previous year.


1


EXHIBIT 99.1

Cash Flow and Liquidity

Westmoreland’s free cash flow through March 31, 2017 , was $42.6 million , including the benefit from the early repayment of loan and lease receivables. Free cash flow is the net of cash flow used in operations of $0.7 million , less capital expenditures of $7.2 million , plus net cash collected for the loan and lease receivables of $50.5 million . Included in cash flow used in operations were cash uses for interest expense of $32.0 million , for asset retirement obligations of $10.7 million , and negative working capital of $3.2 million .

At March 31, 2017 , cash and cash equivalents on hand totaled $75.4 million , a $15.4 million increase from year end. The increase was comprised of free cash flow generation of $42.6 million ; net cash debt reductions including capital lease payments of $22.4 million ; a $3.6 million reserve acquisition and other non-operating cash uses of $1.2 million .

Gross debt plus capital lease obligations at quarter end totaled $1.1 billion , of which $324.4 million resides at Westmoreland Resource Partners, LP and $802.7 million resides at Westmoreland Coal Company. There was $33.4 million available to draw, net of letters of credit, on Westmoreland's revolving credit facility. An additional $14.7 million was available to Westmoreland Resource Partners through its revolving credit facility, which is not available to the parent for borrowings. No amounts had been drawn on either revolving credit facility as of March 31, 2017.

Full-Year Guidance

Westmoreland reiterated its 2017 guidance, which includes the impact of the early repayment of loan and lease receivables related to the Genesee mine, as follows:
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 May 15, 2017 , at 10:00 a.m. Eastern Time.

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 June 5, 2017 and can be accessed using the information below:

Replay:         1-877-481-4010 or 1-919-882-2331
Replay ID:     10368
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

2


EXHIBIT 99.1

limited partnership (NYSE:WMLP). Its power operations include ownership of the two-unit ROVA coal-fired power plant in North Carolina. For more information, visit www.westmoreland.com.

For further information please contact:

Gary Kohn, Chief Financial Officer
1-720-354-4467
gkohn@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.







3



Westmoreland Coal Company and Subsidiaries
Summary Consolidated and Operating Segment Data (Unaudited)


 
Three Months Ended March 31,
 
 
 
 
 
Increase / (Decrease)
 
2017
 
2016
 
$
 
%
 
(In thousands, except tons sold data)
Westmoreland Consolidated
 
 
 
 
 
 
 
Revenues
$
339,737

 
$
355,854

 
$
(16,117
)
 
(4.5
)%
Operating (loss) income
(11,088
)
 
7,619

 
(18,707
)
 
*

Adjusted EBITDA
88,217

 
63,651

 
24,566

 
38.6
 %
Tons sold—millions of equivalent tons
12.4

 
13.8

 
(1.4
)
 
(10.1
)%
 
 
 
 
 
 
 
 
Coal - U.S.
 
 
 
 
 
 
 
Revenues
$
137,368

 
$
155,990

 
$
(18,622
)
 
(11.9
)%
Operating income
4,336

 
7,667

 
(3,331
)
 
(43.4
)%
Adjusted EBITDA
27,469

 
30,350

 
(2,881
)
 
(9.5
)%
Tons sold—millions of equivalent tons
4.7

 
6.0

 
(1.3
)
 
(21.7
)%
 
 
 
 
 
 
 
 
Coal - Canada
 
 
 
 
 
 
 
Revenues
$
109,015

 
$
93,756

 
$
15,259

 
16.3
 %
Operating (loss) income
(7,104
)
 
12,103

 
(19,207
)
 
*

Adjusted EBITDA
59,235

 
23,325

 
35,910

 
154.0
 %
Tons sold—millions of equivalent tons
6.0

 
5.8

 
0.2

 
3.4
 %
 
 
 
 
 
 
 
 
Coal - WMLP
 
 
 
 
 
 
 
Revenues
$
74,805

 
$
92,481

 
$
(17,676
)
 
(19.1
)%
Operating income
1,282

 
809

 
473

 
58.5
 %
Adjusted EBITDA
12,869

 
19,280

 
(6,411
)
 
(33.3
)%
Tons sold—millions of equivalent tons
1.7

 
2.0

 
(0.3
)
 
(15.0
)%
 
 
 
 
 
 
 
 
Power
 
 
 
 
 
 
 
Revenues
$
21,227

 
$
21,995

 
$
(768
)
 
(3.5
)%
Operating loss
(753
)
 
(5,801
)
 
5,048

 
87.0
 %
Adjusted EBITDA
(3,373
)
 
(3,348
)
 
(25
)
 
(0.7
)%
____________________
* Not meaningful





4



Westmoreland Coal Company and Subsidiaries
Consolidated Statements of Operations (Unaudited)


 
Three Months Ended March 31,
 
2017
 
2016
 
(In thousands)
Revenues
$
339,737

 
$
355,854

Cost, expenses and other:
 
 
 
Cost of sales
284,604

 
281,125

Depreciation, depletion and amortization
36,567

 
37,015

Selling and administrative
30,426

 
27,399

Heritage health benefit expenses
3,298

 
3,015

(Gain) loss on sale/disposal of assets
(166
)
 
336

Derivative (gain) loss
(2,384
)
 
2,600

Income from equity affiliates
(1,520
)
 
(1,293
)
Other operating gain

 
(1,962
)
 
350,825

 
348,235

Operating (loss) income
(11,088
)
 
7,619

Other (expense) income:
 
 
 
Interest expense
(29,261
)
 
(28,927
)
Interest income
893

 
1,791

Loss on foreign exchange
(467
)
 
(1,387
)
Other income (loss)
2,158

 
(122
)
 
(26,677
)
 
(28,645
)
Loss before income taxes
(37,765
)
 
(21,026
)
Income tax benefit
(465
)
 
(47,935
)
Net (loss) income
(37,300
)
 
26,909

Less net loss attributable to noncontrolling interest
(499
)
 
(498
)
Net (loss) income applicable to common shareholders
$
(36,801
)
 
$
27,407

Net (loss) income per share applicable to common shareholders:
 
 
 
Basic and diluted
$
(1.98
)
 
$
1.50

Weighted average number of common shares outstanding:
 
 
 
Basic
18,572

 
18,262

Diluted
18,572

 
18,269
















5



Westmoreland Coal Company and Subsidiaries
Consolidated Balance Sheets (Unaudited)

 
March 31, 2017
 
December 31, 2016
 
(In thousands)
Assets
 
 
 
Current assets:
 
 
 
Cash and cash equivalents
$
75,438

 
$
60,082

Receivables:
 
 
 
Trade
131,124

 
140,731

Loan and lease receivables

 
5,867

Other
11,053

 
13,261

Total receivables
142,177

 
159,859

Inventories
120,298

 
125,515

Other current assets
24,836

 
32,258

Total current assets
362,749

 
377,714

Land, mineral rights, property, plant and equipment
1,635,151

 
1,617,938

Less accumulated depreciation, depletion and amortization
818,032

 
782,417

Net property, plant and equipment
817,119

 
835,521

Loan and lease receivables, less current portion

 
44,474

Advanced coal royalties
18,837

 
18,722

Reclamation deposits
75,511

 
74,362

Restricted investments and bond collateral
145,642

 
144,913

Investment in joint venture
26,992

 
26,951

Other assets
63,966

 
62,252

Total Assets
$
1,510,816

 
$
1,584,909

Liabilities and Shareholders’ Deficit
 
 
 
Current liabilities:
 
 
 
Current installments of long-term debt
$
72,710

 
$
86,272

Accounts payable and accrued expenses:
 
 
 
Trade and other accrued liabilities
117,280

 
142,233

Interest payable
14,679

 
22,458

Production taxes
47,081

 
44,995

Postretirement medical benefits
14,892

 
14,892

Deferred revenue
19,984

 
15,253

Asset retirement obligations
31,362

 
32,207

Other current liabilities
20,121

 
20,964

Total current liabilities
338,109

 
379,274

Long-term debt, less current installments
1,019,432

 
1,022,794

Postretirement medical benefits, less current portion
309,217

 
308,709

Pension and SERP obligations, less current portion
43,819

 
43,982

Deferred revenue, less current portion
13,524

 
16,251

Asset retirement obligations, less current portion
457,166

 
451,834

Other liabilities
52,171

 
52,182

Total liabilities
2,233,438

 
2,275,026

Shareholders’ deficit:
 
 
 
Common stock of $.01 par value: Authorized 30,000,000 shares; Issued and outstanding 18,572,233 at March 31, 2017 and 18,570,642 at December 31, 2016
186

 
186

Other paid-in capital
249,441

 
248,143

Accumulated other comprehensive loss
(175,037
)
 
(179,072
)
Accumulated deficit
(794,536
)
 
(757,367
)
Total shareholders’ deficit
(719,946
)
 
(688,110
)
Noncontrolling interests in consolidated subsidiaries
(2,676
)
 
(2,007
)
Total deficit
(722,622
)
 
(690,117
)
Total Liabilities and Shareholders' Deficit
$
1,510,816

 
$
1,584,909



6



Westmoreland Coal Company and Subsidiaries
Consolidated Statements of Cash Flows (Unaudited)     


 
Three Months Ended March 31,
 
2017
 
2016
 
(In thousands)
Cash flows from operating activities:
 
 
 
Net (loss) income
$
(37,300
)
 
$
26,909

Adjustments to reconcile net (loss) income to net cash provided by (used in) operating ac tivities:
 
 
 
Depreciation, depletion and amortization
36,567

 
37,015

Accretion of asset retirement obligation
11,295

 
7,007

Share-based compensation
1,347

 
2,580

Non-cash interest expense
2,296

 
2,269

Amortization of deferred financing costs
2,626

 
3,214

(Gain) loss on derivative instruments
(2,384
)
 
2,600

Loss on foreign exchange
467

 
1,387

Income from equity affiliates
(1,520
)
 
(1,293
)
Distributions from equity affiliates
1,671

 
1,451

Deferred income tax benefit
(465
)
 
(47,973
)
Other
(1,474
)
 
(2,926
)
Changes in operating assets and liabilities:
 
 
 
Receivables
12,250

 
(10,052
)
Inventories
5,156

 
(7,323
)
Accounts payable and accrued expenses
(21,905
)
 
7,698

Interest payable
(7,787
)
 
(5,600
)
Deferred revenue
2,005

 
3,389

Other assets and liabilities
7,104

 
(18,247
)
Asset retirement obligations
(10,659
)
 
18,449

Net cash (used in) provided by operating activities
(710
)
 
20,554

Cash flows from investing activities:
 
 
 
Additions to property, plant and equipment
(7,210
)
 
(5,548
)
Change in restricted investments
(1,171
)
 
(3,172
)
Cash payments related to acquisitions
(3,580
)
 
(126,865
)
Proceeds from sales of assets
466

 
1,626

Receipts from loan and lease receivables
50,488

 
1,620

Payments related to loan and lease receivables

 
(312
)
Other
(293
)
 
79

Net cash provided by (used in) investing activities
38,700

 
(132,572
)
Cash flows from financing activities:
 
 
 
Borrowings from long-term debt, net of debt discount

 
121,225

Repayments of long-term debt
(22,368
)
 
(9,018
)
Borrowings on revolving lines of credit
123,200

 
77,500

Repayments on revolving lines of credit
(123,200
)
 
(79,500
)
Debt issuance costs and other refinancing costs

 
(2,927
)
Other
(178
)
 
(262
)
Net cash (used in) provided by financing activities
(22,546
)
 
107,018

Effect of exchange rate changes on cash
(88
)
 
(182
)
Net increase (decrease) in cash and cash equivalents
15,356

 
(5,182
)
Cash and cash equivalents, beginning of period
60,082

 
22,936

Cash and cash equivalents, end of period
$
75,438

 
$
17,754

Supplemental disclosures of cash flow information:
 
 
 
Cash paid for interest
$
31,951

 
$
30,397



7



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 .



8



 
Three Months Ended March 31,
 
2017
 
2016
 
(In thousands)
Adjusted EBITDA by Segment
 
 
 
Coal - U.S.
$
27,469

 
$
30,350

Coal - Canada
59,235

 
23,325

Coal - WMLP
12,869

 
19,280

Power
(3,373
)
 
(3,348
)
Heritage
(3,670
)
 
(3,481
)
Corporate
(4,313
)
 
(2,475
)
Total
$
88,217

 
$
63,651

 
Three Months Ended March 31,
 
2017
 
2016
 
(In thousands)
Reconciliation of Net (Loss) Income to Adjusted EBITDA
 
 
 
Net (loss) income
$
(37,300
)
 
$
26,909

Income tax benefit
(465
)
 
(47,935
)
Interest income
(893
)
 
(1,791
)
Interest expense
29,261

 
28,927

Depreciation, depletion and amortization
36,567

 
37,015

Accretion of asset retirement obligation
11,295

 
9,618

Amortization of intangible assets and liabilities
(267
)
 
(167
)
EBITDA
38,198

 
52,576

Loss on foreign exchange
467

 
1,387

Acquisition-related costs

 
435

Customer payments received under loan and lease receivables (1)
50,489

 
2,660

Derivative (gain) loss
(2,384
)
 
2,600

Loss on sale/disposal of assets and other adjustments
100

 
1,413

Share-based compensation
1,347

 
2,580

Adjusted EBITDA
$
88,217

 
$
63,651

___________________
(1)  
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 is treated consistently with all other contracts that do not result in loan and lease receivable accounting. On March 24, 2017, Westmoreland received $52.5 million from its customer at the Genesee mine, representing an accelerated repayment of all outstanding loan and lease receivables. While Westmoreland will continue to provide contract mining services at the Genesee mine, all future capital expenditures at the Genesee mine will be funded by the customer. Accordingly, there will be no additional payments from the customer at the Genesee mine in the form of loan and lease repayments, but Westmoreland will earn a management fee pursuant a contract mining arrangement.



9



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 (Used in) Provided by Operating Activities to Free Cash Flow
Three Months Ended March 31,
 
2017
 
2016
 
(In thousands)
Net cash (used in) provided by operating activities
$
(710
)
 
$
20,554

Less cash paid for property, plant and equipment
(7,210
)
 
(5,548
)
Net customer payments received under loan and lease receivables
50,488

 
1,308

Free cash flow
$
42,568

 
$
16,314



Reconciliations of EBITDA and Adjusted EBITDA for Restated Periods

In the Company's Form 10-K for the year ended December 31, 2016, Westmoreland restated certain financial information, including its consolidated statements of operations for the year ended December 31, 2015, and its unaudited quarterly financial information for 2016 and 2015. Presented below are reconciliations of EBITDA and Adjusted EBITDA for each of the quarters in the years ended December 31, 2016 and 2015, as restated, and are provided for reference.

EBITDA and Adjusted EBITDA are non-GAAP measures. See "EBITDA and Adjusted EBITDA" above for further explanation of these measures.

 
Three Months Ended
 
March 31, 2016
 
June 30, 2016
 
September 30, 2016
 
December 31, 2016
 
(In thousands)
Adjusted EBITDA by Segment
 
 
 
 
 
 
 
Coal - U.S.
$
30,350

 
$
20,848

 
$
38,020

 
$
37,347

Coal - Canada
23,325

 
14,342

 
18,562

 
32,181

Coal - WMLP
19,280

 
16,303

 
22,686

 
21,044

Power
(3,348
)
 
614

 
507

 
5,854

Heritage
(3,481
)
 
(3,518
)
 
(3,326
)
 
(3,083
)
Corporate
(2,475
)
 
(3,033
)
 
(2,916
)
 
(4,228
)
Total
$
63,651

 
$
45,556

 
$
73,533

 
$
89,115



10



 
Three Months Ended
 
March 31, 2016
 
June 30, 2016
 
September 30, 2016
 
December 31, 2016
 
(In thousands)
Reconciliation of Net Income (Loss) to Adjusted EBITDA
 
 
 
 
 
 
 
Net income (loss)
$
26,909

 
$
(29,397
)
 
$
(18,607
)
 
$
(7,777
)
Income tax expense (benefit)
(47,935
)
 
(100
)
 
(1,625
)
 
1,601

Interest income
(1,791
)
 
(2,356
)
 
(1,374
)
 
(1,914
)
Interest expense
28,927

 
30,860

 
30,882

 
31,150

Depreciation, depletion and amortization
37,015

 
35,223

 
40,859

 
72,170

Accretion of ARO
9,618

 
10,332

 
10,280

 
10,193

Amortization of intangible assets and liabilities
(167
)
 
(260
)
 
(225
)
 
(158
)
EBITDA
52,576

 
44,302

 
60,190

 
105,265

(Gain) loss on foreign exchange
1,387

 
364

 
(220
)
 
(816
)
Acquisition-related costs
435

 
133

 

 

Customer payments received under loan and lease receivables
2,660

 
2,727

 
2,582

 
5,095

Derivative loss (gain)
2,600

 
(5,878
)
 
5,442

 
(26,219
)
Loss on sale/disposal of assets and other adjustments
1,413

 
1,954

 
4,148

 
4,131

Share-based compensation
2,580

 
1,954

 
1,391

 
1,659

Adjusted EBITDA
$
63,651

 
$
45,556

 
$
73,533

 
$
89,115



 
Three Months Ended
 
March 31, 2015
 
June 30, 2015
 
September 30, 2015
 
December 31, 2015
 
(In thousands)
Adjusted EBITDA by Segment
 
 
 
 
 
 
 
Coal - U.S.
$
23,121

 
$
17,208

 
$
16,884

 
$
19,922

Coal - Canada
23,702

 
32,702

 
21,439

 
27,901

Coal - WMLP
19,005

 
15,175

 
15,648

 
16,306

Power
(2,613
)
 
(614
)
 
75

 
3,895

Heritage
(3,348
)
 
(2,401
)
 
(2,950
)
 
(6,897
)
Corporate
(2,202
)
 
(3,980
)
 
(3,224
)
 
(1,922
)
Total
$
57,665

 
$
58,090

 
$
47,872

 
$
59,205















11



 
Three Months Ended
 
March 31, 2015
 
June 30, 2015
 
September 30, 2015
 
December 31, 2015
 
(In thousands)
Reconciliation of Net Loss to Adjusted EBITDA
 
 
 
 
 
 
 
Net loss
$
(16,024
)
 
$
(39,415
)
 
$
(52,875
)
 
$
(110,781
)
Income tax expense (benefit)
2,040

 
7,556

 
4,362

 
(33,848
)
Interest income
(2,140
)
 
(2,567
)
 
(1,555
)
 
(1,731
)
Interest expense
23,999

 
24,850

 
25,865

 
26,597

Depreciation, depletion and amortization
39,908

 
36,332

 
37,240

 
26,848

Accretion of ARO
9,702

 
9,748

 
9,812

 
9,630

Amortization of intangible assets and liabilities
(253
)
 
(253
)
 
(250
)
 
(254
)
EBITDA
57,232

 
36,251

 
22,599

 
(83,539
)
Restructuring charges
553

 
103

 

 

(Gain) loss on foreign exchange
(2,109
)
 
1,313

 
(1,678
)
 
(1,200
)
Loss on extinguishment of debt

 

 
5,385

 

Loss on impairment

 

 

 
136,210

Acquisition-related costs  
1,400

 

 
3,070

 
1,489

Customer payments received under loan and lease receivables  
4,103

 
11,418

 
8,731

 
2,876

Derivative loss (gain)
(5,276
)
 
6,178

 
5,815

 
(1,130
)
Loss on sale/disposal of assets and other adjustments
240

 
703

 
2,008

 
2,339

Share-based compensation
1,522

 
2,124

 
1,942

 
2,160

Adjusted EBITDA
$
57,665

 
$
58,090

 
$
47,872

 
$
59,205














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