Canadian Panel Orders Walter Energy, Inc. to Pay Lost Wages After Coal Mine Closure
Aug 5 14
A British Columbia labor panel has ordered Walter Energy, Inc. to pay 60 days of lost wages to workers who were laid off without being given prior notice at the Wolverine metallurgical coal mine in Tumbler Ridge. Walter decided to close the mine after declining coal prices made the coal operations financially unsustainable. The ruling, issued by the British Columbia Labour Relations Board on July 24, 2014 Walter failed to provide the required 60 days' notice to discuss an adjustment plan to the union or workers before the layoffs. The workers were represented by the United Steelworkers Local 1-424 of Canada. The union earlier had claimed that Walter violated labor laws in dealing with the closure of the Wolverine mine. According to the ruling, Walter on April 15 provided all employees at Wolverine with the notice of a temporary layoff, immediately affecting approximately 300 workers. About 50 employees continued to work to maintain the site. Walter, in its defense, argued that it was a temporary layoff and the mandatory requirement to serve a prior notice does not apply to such circumstances. The company intends to resume Phase 4A operations at the Wolverine mine.
Walter Energy, Inc. Reports Unaudited Consolidated Earnings Results for the Second Quarter and Six Months and Production Results for the Second Quarter Ended June 30, 2014; Provides Production and Capital Spending Guidance for the Full-Year 2014
Jul 31 14
Walter Energy Inc. reported unaudited consolidated earnings results for the second quarter and six months ended June 30, 2014. For the quarter, the company reported revenues of $377,982,000 against $437,798,000 a year ago. Operating loss was $99,439,000 against $30,553,000 a year ago. Loss before income tax expense benefit was $160,466,000 against $84,252,000 a year ago. Net loss was $151,391,000 or $2.33 basic and diluted per share against $34,492,000 or $0.55 basic and diluted per share a year ago. Loss before interest, income taxes, and depreciation and depletion (LBITDA) was $17,248,000 against earnings before interest, income taxes, and depreciation and depletion (EBITDA) of $37,053,000 a year ago. Adjusted EBITDA was $11,593,000 against $36,741,000 a year ago. Adjusted net loss was $128,270,000 or $1.97 basic and diluted per share against income of $34,663,000 or $0.55 basic and diluted per share a year ago. For the second quarter, capital spending was $31 million.
For the six months, the company reported revenues of $792,236,000 against $932,839,000 a year ago. Operating loss was $146,501,000 against $94,173,000 a year ago. Loss before income tax expense benefit was $288,605,000 against $199,735,000 a year ago. Net loss was $243,569,000 or $3.81 basic and diluted per share against $83,936,000 or $1.34 basic and diluted per share a year ago. Loss before interest, income taxes, and depreciation and depletion (LBITDA) was $3,531,000 against earnings before interest, income taxes, and depreciation and depletion (EBITDA) of $48,727,000 a year ago. Adjusted EBITDA was $37,824,000 against $68,694,000 a year ago. Adjusted net loss was $206,452,000 or $3.23 basic and diluted per share against income of $71,283,000 or $1.14 basic and diluted per share a year ago. Cash flows used in operating activities was $39,008,000 against $24,102,000 a year ago. Additions to property, plant and equipment were $43,476,000 against $80,251,000 a year ago.
Met coal production was 2.4 MMTs in the quarter, compared with 2.9 MMTs in the prior-year period, with the decrease primarily resulting from the idling of the Canadian mining operations in the current quarter.
For the full-year 2014, the company expects met coal production to be between 9.0 and 10.0 MMTs and full-year 2014 met coal sales volume to total between 9.5 MMTs and 10.5 MMTs, a reduction from the previous outlook of 10.5 MMTs to 11.5 MMTs, primarily because the Company's principal coal transportation provider at the Brule mine in Canada ceased operations in June.
For the full year 2014, the company expects capital spending to total approximately $120 million.
Walter Energy, Inc. Terminates Daniel P. Cartwright as President-Canadian Operations
Jul 25 14
On July 23, 2014, Walter Energy, Inc. received notice from Daniel P. Cartwright, the President-Canadian Operations of the Company, of his decision to terminate his employment with the Company, effective July 31, 2014. Pursuant to his employment arrangement with the Company, Mr. Cartwright elected to terminate his employment for .good reason', based on a material diminution in his authority, duties and responsibilities brought about as a result of the idling of the company's Canadian operations announced in April 2014.