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"Our third quarter performance illustrates the strong demand for our high quality coking coal," said Company Chief Executive Officer Victor P. Patrick. "We continue to see improving market conditions for our product and we are on track to achieve sales of approximately 3.5 million tons in the second half. This performance supports our plan to produce and sell approximately 8 million tons in 2010, with the startup of the Mine No. 7 East longwall in early January 2010."
Third Quarter 2009 Financial & Operating Results from Continuing Operations
Net sales and revenues for the third quarter 2009 totaled $278.3 million, compared to $308.8 million in the prior-year period. Operating income totaled $42.4 million for the quarter, down $67.2 million versus the prior-year period. Both revenues and operating income were lower, driven by significantly lower coke sales as well as lower realized prices for coking coal compared to the previous year's all-time highs.
Net sales and revenues and operating income were up $109.2 million and $20.9 million, respectively, versus the second quarter 2009. The sequential improvements were driven by strong customer demand resulting in 0.8 million tons of additional coking coal sales in the current period, facilitated by improvements in loading rates at the Port of Mobile. In addition, volumes included approximately 79,000 tons of carryover tonnage from the prior contract year priced in excess of $315 per metric ton.
Underground Mining
Coking coal sales volumes were 1.9 million tons in the third quarter, a record for quarterly sales volumes, at an average selling price of $121.66 per short ton FOB Port, versus 1.4 million tons at an average price of $161.92 in the prior-year period. On a year-to-date basis, coking coal sales volumes totaled 4.7 million tons, up slightly versus the first nine months of 2008, despite declines in global steel production.
Total coking coal production in the quarter was 1.5 million tons versus 1.2 million tons in the prior-year period. Coking coal production at Mine No. 4 totaled 0.7 million tons in the third quarter, slightly lower than in the prior year. Mine No. 7 produced 0.8 million tons in the third quarter, 0.3 million tons more than in the third quarter last year. This is the result of improved longwall performance at the No. 7 Mine in the current-year period, as well as lower volumes in the prior-year period due to a longwall move at that mine.
Average mine production costs for the period were $60.60 per ton. At No. 4, production costs were $58.27 per ton, an increase of $7.41 per ton over the prior year, as a result of lower volumes, along with higher labor and depreciation costs. Production costs at No. 7 were $62.48 per ton compared to $94.82 per ton in the prior-year period, a result of the increase in production volume, partially offset by higher labor and depreciation costs.
The natural gas business sold 1.5 billion cubic feet of gas, slightly less than in the prior year, at an average price of $3.29 per thousand cubic feet in the third quarter 2009 compared to an average price of $8.69 per thousand cubic feet in the prior-year period.
Surface Mining
The surface mining segment reported net sales and revenues of $25.2 million in the third quarter 2009, compared to $18.9 million in the prior-year period, driven primarily by a 28.8 percent increase in average selling prices for steam and industrial coal in the current period. Sales volumes were also higher in the current period primarily resulting from the acquisition of Taft Coal Sales & Associates, Inc. ("Taft") in September 2008. Operating income in the third quarter 2009 was $6.8 million, compared to $1.7 million in the third quarter 2008, primarily driven by the higher average contract prices for steam and industrial coal and higher sales volumes.
Steam and industrial coal sales were 302,000 tons during the third quarter compared to sales of 283,000 tons in the prior-year period. Production totaled 359,000 tons in the third quarter versus prior-year production of 268,000 tons, primarily from the inclusion of a full quarter of Taft's production in the current period compared to only one month in the prior year.
Walter Coke
Walter Coke generated net sales and revenues of $23.3 million in the third quarter 2009, compared to $53.7 million in the prior-year period. Walter Coke returned to near break-even in the third quarter 2009 on strengthening demand for metallurgical coke.
Third quarter 2009 metallurgical coke sales were 38,478 tons at an average price of $361.95 per ton. In the prior year, Walter Coke sold 101,077 tons at $397.20 per ton. Declines in revenue and operating income in the current period reflect lower shipments resulting from lower domestic steel capacity utilization versus the prior year.
Corporate and Other
Interest expense totaled $4.8 million in the quarter, down $0.7 million versus the prior-year period. Interest expense in the quarter was lower due to the Company's repayment of its revolving credit facility balance earlier this year and lower interest rates on outstanding debt.
At Sept. 30, 2009, the Company had available liquidity of $322.9 million, including cash of $87.8 million and $235.1 million available under its credit facility. Total net debt outstanding at Sept. 30, 2009 was $95.0 million compared to $147.2 million at June 30, 2009.
Business Outlook
Walter Energy's business outlook for the remainder of 2009 includes the following:
Coking Coal Sales(1) Q3-2009 A Q4-2009 E
------------------- --------- ---------
Tons Sold (short tons, in millions) 1.9 1.6 - 1.7
Average Operating Margin(2) Per Ton $23.91 $27 - $33
Steam & Industrial Coal Sales(3) Q3-2009 A Q4-2009 E
------------------------------- --------- ---------
Tons Sold (short tons) 302,000 300,000 - 330,000
Average Operating Margin(2) Per Ton $17.38 $12 - $17
Coke Sales Q3-2009 A Q4-2009 E
---------- --------- ---------
Tons Sold 38,478 78,000 - 86,000
Average Operating Margin (Loss)(2)
Per Ton $(5.71) $19 - $24
Quarter-to-quarter variability in timing, availability and pricing of
shipments may result in significant shifts in income between quarters.
(1) Includes the underground mining operation at Jim Walter Resources;
excludes the coal bed methane operation
(2) Operating margin is defined as operating income (Earnings Before
Interest & Taxes) from each business shown
(3) Includes the surface mining operations; excludes income from
royalties and miscellaneous land sales reported in the surface mining
segment
The Company expects to ship 126,000 tons of hard coking coal at 2008-2009 carryover pricing of approximately $315 per metric ton in the fourth quarter 2009.
Coking coal production is expected to be between 1.4 and 1.5 million tons in the fourth quarter, with production costs expected to average between $65 and $70 per ton.
"We expect continued improvement in market conditions for the remainder of 2009," said Patrick. "Moving into 2010, we are seeing increasing demand for premium mid- and low-vol coals from our key product destinations, as well as Asia, with port constraints in Australia continuing to make high-quality coking coals a scarce resource."
The Company recently finalized its long-range mining plan and expects to produce approximately 8.0 million tons of premium hard coking coal in 2010, highlighted by incremental production from the Company's Mine No. 7 East expansion. The Company added that it expects to increase coking coal production capacity to between 8.5 and 9.0 million tons in 2011 and between 9.0 and 9.5 million tons in 2012.
Walter Coke is expecting improved sales and a return to profitability in the fourth quarter 2009, driven primarily by increased orders from the domestic steel industry.
Capital expenditures were $14.9 million in the third quarter, totaling $67.3 million for the year. The Company expects full-year capital expenditures of approximately $85 million.
Conference Call Web cast
Chief Executive Officer Victor P. Patrick and members of the Company's leadership team will discuss Walter Energy's third quarter results, its outlook and other general business matters during a conference call and live Web cast to be held on Wednesday, Oct. 21, 2009, at 10 a.m. Eastern Daylight Time. To listen to the event live or in archive, visit the Company Web site at www.walterenergy.com.
About Walter Energy
Walter Energy is a leading U.S. producer and exporter of premium hard coking coal for the global steel industry and also produces steam coal and industrial coal, metallurgical coke and coal bed methane gas. The Company has revenues of approximately $1.2 billion and employs approximately 2,150 people. For more information about Walter Energy, please visit the Company Web site at www.walterenergy.com.
Safe Harbor Statement
Except for historical information contained herein, the statements in this release are forward-looking and made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements, including expressions such as "believe," "anticipate," "expect," "estimate," "intend," "may," "will," and similar expressions involve known and unknown risks, uncertainties, and other factors that may cause Walter Energy's actual results in future periods to differ materially from the expectations expressed or implied by such forward-looking statements. These factors include, among others, the following: the market demand for the Company's products as well as changes in pricing and costs; the availability of raw material, labor, equipment and transportation; changes in weather and geologic conditions; changes in extraction costs, pricing and assumptions and projections concerning reserves in Walter Energy's mining operations; changes in customer orders; pricing actions by the Company's competitors, customers, suppliers and contractors; changes in governmental policies and laws; and changes in general economic conditions. Forward-looking statements made by Walter Energy in this release, or elsewhere, speak only as of the date on which the statements were made. Any forward-looking statements should be considered in context with the various disclosures made by Walter Energy, including the Risk Factors described in the Company's 2008 Annual Report on Form 10-K and Walter Energy's other filings with the Securities and Exchange Commission. Walter Energy has no obligation to update its forward-looking statements as of any future date.
- WLT -
WALTER ENERGY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
($ in thousands, except per share and share amounts)
Unaudited
For the three months
ended September 30,
----------- -----------
2009 2008
----------- -----------
Net sales and revenues:
Net sales $ 276,331 $ 307,407
Miscellaneous income 1,974 1,400
----------- -----------
278,305 308,807
----------- -----------
Costs and expenses:
Cost of sales (exclusive of depreciation) 190,678 164,801
Depreciation 18,214 13,525
Selling, general and administrative 19,238 14,036
Postretirement benefits 7,712 6,859
Amortization of intangibles 112 67
----------- -----------
235,954 199,288
----------- -----------
Operating income 42,351 109,519
Interest expense (4,780) (5,478)
Interest income 152 155
----------- -----------
Income from continuing operations before income
taxes 37,723 104,196
Income tax expense 13,355 32,906
----------- -----------
Income from continuing operations 24,368 71,290
Discontinued operations (1) (560) (16,290)
----------- -----------
Net income $ 23,808 $ 55,000
=========== ===========
Basic income per share:
Income from continuing operations $ 0.46 $ 1.28
Discontinued operations (0.01) (0.29)
----------- -----------
Basic net income per share $ 0.45 $ 0.99
=========== ===========
Weighted average number of shares outstanding 52,903,686 55,685,967
=========== ===========
Diluted income per share:
Income from continuing operations $ 0.45 $ 1.26
Discontinued operations (0.01) (0.29)
----------- -----------
Diluted net income per share $ 0.44 $ 0.97
=========== ===========
Weighted average number of diluted shares
outstanding 53,761,367 56,449,918
=========== ===========
(1) Discontinued operations includes the results of Financing, Homebuilding
and Kodiak Mining, Co. ("Kodiak"), for all periods presented. On April 17,
2009, Financing was spun off to shareholders and merged with Hanover
Capital Mortgage Holdings, Inc., creating Walter Investment Management
Corporation, a publicly traded real estate investment trust. The Company
announced the closure of its Homebuilding business in January 2009 and
continues to liquidate the remaining assets. The Company's Kodiak mining
operations were closed in December 2008.
WALTER ENERGY, INC. AND SUBSIDIARIES
RESULTS BY OPERATING SEGMENT
($ in thousands)
Unaudited
For the three months
ended September 30,
------------------------
2009 2008
----------- -----------
NET SALES AND REVENUES:
Underground Mining (1) $ 233,060 $ 251,373
Surface Mining (1) 25,229 18,908
Walter Coke 23,307 53,738
Other 910 1,910
Consolidating eliminations of intersegment
activity (4,201) (17,123)
----------- -----------
$ 278,305 $ 308,806
=========== ===========
OPERATING INCOME (LOSS):
Underground Mining (1) $ 44,120 $ 96,319
Surface Mining (1) 6,777 1,670
Walter Coke (223) 14,638
Other (8,403) (3,082)
Consolidating eliminations of intersegment
activity 80 (26)
----------- -----------
Operating income $ 42,351 $ 109,519
=========== ===========
(1) The previous year's presentation has been revised to reflect a change
in reportable segments from Natural Resources to Underground Mining and
Surface Mining and to exclude Kodiak, which is reported as discontinued
operations. Underground Mining includes the Company's deep underground
metallurgical coal operations from the No. 4 and No. 7 mines, and its
natural gas operations. Surface Mining includes the operations of
Tuscaloosa Resources, Inc., Taft Coal Sales & Associates and Walter
Minerals.
WALTER ENERGY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
($ in thousands, except per share and share amounts)
Unaudited
For the nine months
ended September 30,
----------- -----------
2009 2008
----------- -----------
Net sales and revenues:
Net sales $ 721,502 $ 774,822
Miscellaneous income 9,060 9,325
----------- -----------
730,562 784,147
----------- -----------
Costs and expenses:
Cost of sales (exclusive of depreciation) 436,487 462,612
Depreciation 54,216 37,833
Selling, general and administrative 51,091 49,693
Postretirement benefits 23,137 20,575
Amortization of intangibles 335 206
----------- -----------
565,266 570,919
----------- -----------
Operating income 165,296 213,228
Interest expense (13,995) (22,375)
Interest income 628 520
----------- -----------
Income from continuing operations before income
taxes 151,929 191,373
Income tax expense 43,375 57,172
----------- -----------
Income from continuing operations 108,554 134,201
Discontinued operations (1) (572) (27,926)
----------- -----------
Net income $ 107,982 $ 106,275
=========== ===========
Basic income (loss) per share:
Income from continuing operations $ 2.05 $ 2.50
Discontinued operations (0.01) (0.52)
----------- -----------
Basic net income per share $ 2.04 $ 1.98
=========== ===========
Weighted average number of shares outstanding 53,051,794 53,613,732
=========== ===========
Diluted income (loss) per share:
Income from continuing operations $ 2.02 $ 2.47
Discontinued operations (0.01) (0.52)
----------- -----------
Diluted net income per share $ 2.01 $ 1.95
=========== ===========
Weighted average number of diluted shares
outstanding 53,695,337 54,363,127
=========== ===========
(1) Discontinued operations includes the results of Financing, Homebuilding
and Kodiak Mining, Co. ("Kodiak"), for all periods presented. On April 17,
2009, Financing was spun off to shareholders and merged with Hanover
Capital Mortgage Holdings, Inc., creating Walter Investment Management
Corporation, a publicly traded real estate investment trust. The Company
announced the closure of its Homebuilding business in January 2009 and
continues to liquidate the remaining assets. The Company's Kodiak mining
operations were closed in December 2008.
WALTER ENERGY, INC. AND SUBSIDIARIES
RESULTS BY OPERATING SEGMENT
($ in thousands)
Unaudited
For the nine months
ended September 30,
------------------------
2009 2008
----------- -----------
NET SALES AND REVENUES:
Underground Mining (1) $ 607,670 $ 622,242
Surface Mining (1) 73,527 48,603
Walter Coke 63,864 157,874
Other 2,039 2,751
Consolidating eliminations of intersegment
activity (16,538) (47,323)
----------- -----------
$ 730,562 $ 784,147
=========== ===========
OPERATING INCOME (LOSS):
Underground Mining (1) $ 166,610 $ 179,364
Surface Mining (1) 17,630 5,652
Walter Coke (1,295) 48,429
Other (18,217) (19,523)
Consolidating eliminations of intersegment
activity 568 (694)
----------- -----------
Operating income $ 165,296 $ 213,228
=========== ===========
(1) The previous year's presentation has been revised to reflect a change
in reportable segments from Natural Resources to Underground Mining and
Surface Mining and to exclude Kodiak, which is reported as discontinued
operations. Underground Mining includes the Company's deep underground
metallurgical coal operations from the No. 4 and No. 7 mines, and its
natural gas operations. Surface Mining includes the operations of
Tuscaloosa Resources, Inc., Taft Coal Sales & Associates and Walter
Minerals.
WALTER ENERGY, INC. AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
Unaudited
For the three For the nine
months ended months ended
September 30, September 30,
----------------- -----------------
2009 2008 2009 2008
-------- -------- -------- --------
Operating Data:
Underground Mining
Tons sold by type (in thousands):
Metallurgical coal, contracts 1,868 1,250 4,618 4,261
Purchased coal 3 134 97 362
-------- -------- -------- --------
1,871 1,384 4,715 4,623
======== ======== ======== ========
Average selling price per short ton $ 121.66 $ 161.92 $ 124.11 $ 117.55
Tons sold by mine (in thousands):
Mine No. 4 748 740 2,109 2,585
Mine No. 7 1,120 510 2,509 1,676
-------- -------- -------- --------
Total 1,868 1,250 4,618 4,261
======== ======== ======== ========
Coal cost of sales (exclusive of
depreciation):
Mine No. 4 per ton $ 73.09 $ 67.89 $ 69.98 $ 59.68
Mine No. 7 per ton $ 85.95 $ 102.15 $ 70.82 $ 84.86
Weighted average cost of sales
per ton $ 80.80 $ 81.87 $ 70.44 $ 69.58
Purchased coal costs (in
thousands) $ 92 $ 8,071 $ 4,048 $ 20,487
Other costs (in thousands) (1) $ 4,983 $ 3,172 $ 11,340 $ 10,136
Tons of coal produced (in
thousands):
Mine No. 4 687 731 2,113 2,473
Mine No. 7 849 513 2,617 1,773
-------- -------- -------- --------
Total 1,536 1,244 4,730 4,246
======== ======== ======== ========
Coal production costs per ton: (2)
Mine No. 4 $ 58.27 $ 50.86 $ 55.45 $ 43.77
Mine No. 7 $ 62.48 $ 94.82 $ 62.43 $ 76.45
Weighted average production
costs per ton $ 60.60 $ 68.99 $ 59.31 $ 57.42
Natural gas sales, in mmcf (in
thousands) 1,507 1,667 4,780 4,844
Natural gas average sale price per
mcf $ 3.29 $ 8.69 $ 4.32 $ 8.55
Natural gas cost of sales per mcf $ 2.41 $ 3.46 $ 2.54 $ 3.47
Surface Mining
Tons sold (in thousands) 302 283 908 707
Tons of coal produced (in
thousands) 359 268 1,027 696
Average selling price per short
ton $ 78.90 $ 61.24 $ 74.23 $ 60.88
Coal production costs per ton $ 54.25 $ 60.57 $ 60.13 $ 58.01
(1) Consists of charges (credits) not directly allocable to a specific
underground mine.
(2) Coal production costs per ton are a component of inventoriable costs,
including depreciation. Other costs not included in coal production costs
per ton include Company-paid outbound freight, postretirement benefits,
asset retirement obligation expenses, royalties, and Black Lung excise
taxes.
WALTER ENERGY, INC. AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
Unaudited
For the three For the nine
months months
ended September ended September
30, 30,
----------------- -----------------
2009 2008 2009 2008
-------- -------- -------- --------
Operating Data (continued):
Walter Coke:
Metallurigical coke tons
sold 38,478 101,077 111,925 311,531
Metallurigical coke average
sales price per ton $ 361.95 $ 397.20 $ 342.07 $ 394.40
Depreciation ($ in thousands):
Underground Mining $ 14,824 $ 10,463 $ 43,760 $ 30,218
Surface Mining 2,142 1,777 6,694 3,885
Walter Coke 1,140 1,048 3,418 3,033
Other 108 237 344 697
-------- -------- -------- --------
$ 18,214 $ 13,525 $ 54,216 $ 37,833
======== ======== ======== ========
Capital expenditures ($ in
thousands)(1):
Underground Mining $ 13,350 $ 49,083 $ 50,847 $ 98,105
Surface Mining 912 1,196 12,720 2,468
Walter Coke 311 1,979 3,362 5,571
Other 376 99 383 212
-------- -------- -------- --------
$ 14,949 $ 52,357 $ 67,312 $106,356
======== ======== ======== ========
(1) Includes the acquisition of property, plant and equipment under
capital lease and other obligations totaling $22.6 million during
the quarter ended September 30, 2008.
WALTER ENERGY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
($ in thousands)
Unaudited
As of
-------------------------
September 30, December 31,
2009 2008
------------ ------------
ASSETS
Current assets of continuing operations:
Cash and cash equivalents $ 87,815 $ 116,074
Receivables, net 122,716 140,423
Inventories 105,280 75,172
Deferred income taxes 57,326 84,669
Other current assets 30,575 26,119
------------ ------------
Total current assets 403,712 442,457
Property, plant and equipment, net 515,952 504,585
Deferred income taxes 184,387 179,402
Other long-term assets 69,489 69,251
------------ ------------
Total assets of continuing operations 1,173,540 1,195,695
------------ ------------
Assets of discontinued operations:
Current assets (1) 19,207 16,158
Long-term assets (1) - 18,396
Unclassified assets (2) - 1,837,744
------------ ------------
Total assets of discontinued operations 19,207 1,872,298
------------ ------------
TOTAL ASSETS $ 1,192,747 $ 3,067,993
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities of continuing operations
Accounts payable $ 48,371 $ 60,497
Accrued expenses 40,398 57,230
Current debt 17,566 13,480
Accumulated postretirement benefits obligation 19,124 19,124
Other current liabilities 20,545 20,801
------------ ------------
Total current liabilities of continuing
operations 146,004 171,132
Long-term debt 165,269 211,905
Accumulated postretirement benefits obligation 351,168 349,184
Other long-term liabilities 257,017 273,645
------------ ------------
Total liabilities of continuing operations 919,458 1,005,866
------------ ------------
Liabilities of discontinued operations:
Current liabilities (1) 7,689 12,400
Unclassified liabilities (2) - 1,419,458
------------ ------------
Total liabilities of discontinued operations 7,689 1,431,858
------------ ------------
TOTAL LIABILITIES 927,147 2,437,724
------------ ------------
STOCKHOLDERS' EQUITY 265,600 630,269
------------ ------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 1,192,747 $ 3,067,993
============ ============
(1) Includes the remaining assets and liabilities of the Company's closed
businesses: Homebuilding and Kodiak.
(2) Represents the assets and liabilities of the Company's Financing
business, which was spun off to shareholders on April 17, 2009.
WALTER ENERGY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
AND COMPREHENSIVE INCOME
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2009
($ in thousands)
Unaudited
Accumulated
Capital in Other
Common Excess of Comprehensive Retained Comprehensive
Total Stock Par Value Income Earnings Loss
-------- ----- --------- ------------ -------- ------------
Balance at
December
31, 2008 $630,269 $ 541 $ 714,174 $ 50,990 $ (135,436)
Comprehen-
sive
income:
Net income 107,982 $ 107,982 107,982
Other
compre-
hensive
income
(loss),
net of
tax:
Change in
pension
and
postre-
tirement
benefit
plans 5,981 5,981 5,981
Change in
unrealized
gain (loss)
on hedges (1,465) (1,465) (1,465)
------------
Comprehensive
income $ 112,498
============
Purchases of
stock under
stock
repurchase
program (27,963) (13) (27,950)
Stock
dividend
for spin-
off of
Financing (439,093) (321,301) (116,106) (1,686)
Dividends
paid,
$0.30 per
share (15,887) - (15,887)
Stock-based
compensa-
tion 5,565 5,565
Other 211 1 210
-------- ----- --------- -------- ------------
Balance at
September
30, 2009 $265,600 $ 529 $ 370,698 $ 26,979 $ (132,606)
======== ===== ========= ======== ============
WALTER ENERGY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
($ in thousands)
Unaudited
For the nine months
ended September 30,
------------------------
2009 2008
----------- -----------
OPERATING ACTIVITIES
Net income $ 107,982 $ 106,275
Loss from discontinued operations 572 27,926
----------- -----------
Income from continuing operations 108,554 134,201
Adjustments to reconcile income from continuing
operations to net cash flows provided by
operating activities:
Depreciation 54,216 37,833
Other 21,077 6,188
Decrease (increase) in assets:
Receivables 18,126 (71,658)
Inventories (30,213) (23,645)
Other current assets 11,267 7,049
Increase (decrease) in liabilities:
Accounts payable (12,126) 11,780
Accrued expenses and other current
liabilities (6,131) 35,168
----------- -----------
Cash flows provided by operating activities 164,770 136,916
----------- -----------
INVESTING ACTIVITIES
Additions to property, plant and equipment (67,312) (83,768)
Acquisition of Taft Coal Sales & Associates - (17,871)
Other 3,667 (364)
----------- -----------
Cash flows used in investing activities (63,645) (102,003)
----------- -----------
FINANCING ACTIVITIES
Proceeds from issuance of debt - 330,000
Retirements of debt (55,260) (376,351)
Proceeds from stock offering - 280,432
Dividends paid (15,887) (10,799)
Cash spun off to Financing (33,821) -
Purchases of stock under stock repurchase
program (27,963) (14,461)
Other (5,262) 12,096
----------- -----------
Cash flows provided by (used in) financing
activities (138,193) 220,917
----------- -----------
Cash flows provided by (used in) continuing
operations (37,068) 255,830
----------- -----------
CASH FLOWS FROM DISCONTINUED OPERATIONS
Cash flows provided by operating activities 24,133 22,190
Cash flows provided by investing activities 25,732 29,116
Cash flows used in financing activities (41,385) (306,559)
----------- -----------
Cash flows provided by (used in) discontinued
operations 8,480 (255,253)
----------- -----------
Net decrease in cash and cash equivalents $ (28,588) $ 577
=========== ===========
Cash and cash equivalents at beginning of period $ 116,074 $ 27,459
Add: Cash and cash equivalents of discontinued
operations at beginning of year 1,598 3,155
Net increase (decrease) in cash and cash
equivalents (28,588) 577
Less: Cash and cash equivalents of discontinued
operations at end of period 1,269 1,644
----------- -----------
Cash and cash equivalents at end of period $ 87,815 $ 29,547
=========== ===========
SUPPLEMENTAL DISCLOSURES
Non-cash transations:
Financing of one-year property insurance policy $ 8,515 $ 9,291
=========== ===========
Dividend to spin off Financing $ 437,407 $ -
=========== ===========
Lease financing of equipment and other
obligations $ - $ 22,587
=========== ===========
SOURCE: Walter Energy
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The Connors Group, Inc. ("Company") is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. The analysts and employees or affiliates of Company may hold positions in the stocks, currencies or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities and/or currencies. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company's website, or in its publications, are made as of the date stated and are subject to change without notice.
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company's products (collectively, the "Information") are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company's website are for educational purposes only. Such set-ups are not solicitations of any order to buy or sell. Accordingly, you should not rely solely on the Information in making any investment. Rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment.
HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING AND MAY NOT BE IMPACTED BY BROKERAGE AND OTHER SLIPPAGE FEES. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.
The Connors Group, Inc.
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