Earnings Review - Walter Energy

LONDON, November 19, 2014 /PRNewswire/ --

Investor-Edge.com has issued free earnings review on Walter Energy Inc. (NYSE: WLT). On October 30, 2014, the company reported its financial results for Q3 FY14 (period ended September 30, 2014). Click on www.investor-edge.com/FreeReports to read our free earnings review on Walter Energy Inc. (Walter Energy). During Q3 FY14, the company's consolidated revenues fell by $126.3 million from Q3 FY13, while its net loss narrowed by $0.13 per diluted share from Q3 FY13. Walt Scheller, CEO of Walter Energy, stated that in the challenging pricing environment for met coal, the company remains focused on lowering production costs, reducing SG&A and improving productivity. Our free coverage report can be accessed at:

www.investor-edge.com/register

Earnings Overview 

Walter Energy's consolidated revenues for Q3 FY14 declined to $329.5 million from $455.8 million in Q3 FY13. The company's consolidated revenues were slightly above the Bloomberg analysts' forecasts of $328.3 million. Walter Energy's lower revenues during the reported quarter reflected a decrease in average met coal selling prices of $22.57 per metric ton (MT) and a decline in met coal sales of 0.5 million metric tons (MMTs). In addition, the company's Q3 FY14 results also reflected a reduction in met coal cash cost of sales of $22.04 per ton and a 24% reduction in selling, general and administrative (SG&A) expenses. During Q3 FY14, Walter Energy's revenues from its US operations declined to $282.4 million from $337.3 million in Q3 FY13. Further, the company's revenues from its Canadian and UK operations reduced significantly to $46.4 million in Q3 FY14 from $119.4 million in Q3 FY13. The free research on WLT can be downloaded as in PDF format at:

www.Investor-Edge.com/WLTFreeReport

The company's earnings before interest, taxes, depreciation and amortization (EBITDA) for the reported quarter stood at $8.4 million, compared with EBITDA of $23.6 million in Q3 FY13. On an adjusted basis, the company's EBITDA lowered to $0.2 million in Q3 FY14, from $21.3 million in the year-ago quarter. Walter Energy's net loss during the reported quarter narrowed to $98.9 million, or $1.48 per diluted share, from a net loss of $100.7 million, or $1.61 per diluted share, in Q3 FY13. Analysts from Bloomberg had expected the company to report net loss of $107.6 million, or $1.75 per share, in Q3 FY14. Excluding certain unusual items, the company's adjusted net loss for Q3 FY14 stood at $105.8 million, or $1.58 per diluted share, compared to an adjusted net loss of $102.3 million, or $1.63 per diluted share, in Q3 FY13.

For FY14, the company expects met coal production of approximately 9.5 MMTs, which is within the company's previously provided range. Cash cost of sales per ton for the company's Alabama underground mines is expected to average approximately $96 per MT for FY14, down from its previous estimates of approximately $100 per MT. For FY14, the company's met coal sales volumes are expected to total approximately 10.0 MMTs, within its previously provided range. Further, the company has reduced its FY14 capital spending target to approximately $110 million from $120 million. Mr. Scheller said that the company has idled assets that are not generating cash, and it is reducing inventory across the company. Walter Energy's management expects the company's operating and financial results to reflect these actions going forward, making it more competitive and positioning it well for a recovery in met coal pricing. Sign up and read the free analyst's notes on WLT at:  

www.Investor-Edge.com/WLT-19112014

Stock Performance  

On the day of the earnings release, October 30, 2014, Walter Energy's stock ended the session at $2.29, down 2.14%. Although the stock has moved both ways since then, the gains have outweighed the losses so far. On the last close, Tuesday, November 18, 2014, it finished at $2.93, down 2.98%, after vacillating between $2.90 and $3.06. A total of 2.19 million shares were traded, which was much below its three months average volume of 6.05 million shares. The stock has witnessed a gain of 2.45% over the previous three trading sessions and 53.40% over the last one month. However, the company's shares have plummeted 82.38% from the beginning of this year. Shares in Walter Energy closed above their 50-day moving average of $2.58. Furthermore, the stock has a Relative Strength Index (RSI) of 59.97. Visit Investor-Edge and access the latest research on WLT at:

www.Investor-Edge.com/WLTEarningsCoverage

Sneak Peek to Corporate Insider Trading 

In the last one month, Walter Energy has reported one insider selling transaction to the U.S. Securities and Exchange Commission (SEC). On November 13, 2014, Joseph B. Leonard, Director at Walter Energy, sold 18,100 shares worth $51,585 at a price of $2.85 per share. Complimentary in-depth research on WLT is available at:

www.Investor-Edge.com/WLTInsiderTrading

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