Westmoreland Coal — Debt Investor Presentation (December 2018)
22 slides from Westmoreland Coal's debt investor presentation, Dec 19, 2018
Slide 1: December 2018 Discussion Materials
December 2018 Discussion Materials Exhibit 99.1
Slide 2: Disclaimer
Disclaimer This presentation contains statements about future events and expectations, which are "forward-looking statements." Any statement in this presentation that is not a statement of historical fact, including, but not limited to earnings guidance, estimates, forecasts, projections of financia
Slide 3: Table of Contents
Table of Contents Important Note: Holders and potential holders of the Company’s indebtedness have the ability to access more detailed financial projections and performance optimization information in a virtual data room. Such information will specifically be designated “Non-Cleansing Information” a
Slide 4: Financial Projections
Section 1 Financial Projections
Slide 5: Approach and Key Assumptions
Approach and Key Assumptions Life of Mine (“LoM”) Business Plan Process and Approach: Westmoreland LoM business plan forecast incorporates the following: 2018 is a monthly, site by site forecast based on the Company’s 9+3 2018 forecast 2019-2065 forecasts are based on the LoM forecasts Overview: Wes
Slide 6: Approach and Key Assumptions (cont'd)
Approach and Key Assumptions (cont’d) General Assumptions: WMLP financials are excluded from consolidated forecasts for purposes of presentation Forecast converts Canadian financials to USD at 1.30 CAD/USD exchange rate; assumes no FX hedging or cash impact from changes in the CAD/USD exchange rate
Slide 7: Consolidated Financial Summary (Excl. WMLP)
(3) Consolidated Financial Summary (Excl. WMLP) Source:Company information Note: Dollars and tons in millions. Cash Flow for Debt Service is prior to restructuring professional fees (2018 - $42.3M ; and 2019 - $36.8M) and bankruptcy fees. Includes costs to perform reclamation, bond collateral postin
Slide 8: U.S. Mine-Level Financial Summary (Excl. WMLP)
U.S. Mine-Level Financial Summary (Excl. WMLP) Preliminary and illustrative analysis subject to further diligence and material revision (1) (2) (3) Source:Company information Note: Dollars and tons in millions. Cash Flow for Debt Service is prior to restructuring professional fees and bankruptcy fee
Slide 9: Canadian Mine-Level Financial Summary
Canadian Mine-Level Financial Summary Preliminary and illustrative analysis subject to further diligence and material revision (1) (2) (3) Source:Company information Note: Dollars and tons in millions. Cash Flow for Debt Service is prior to restructuring professional fees and bankruptcy fees. Includ
Slide 10: Corporate Financial Summary
Corporate Financial Summary Preliminary and illustrative analysis subject to further diligence and material revision (1) (2) (3) Source:Company information Note: Dollars and tons in millions. Cash Flow for Debt Service is prior to restructuring professional fees and bankruptcy fees. Includes costs t
Slide 11: Heritage Financial Summary
Heritage Financial Summary (1) (3) (2) Source:Company information Note: Dollars and tons in millions. Cash Flow for Debt Service is prior to restructuring professional fees and bankruptcy fees. Includes costs to perform reclamation, bond collateral postings and other current reclamation. Includes bo
Slide 12: Summary Projected 2018 Financials (Reflects 9+3 Forecast)
Summary Projected 2018 Financials (Reflects 9+3 Forecast) Source:Company information Note: Dollars and tons in millions. Cash Flow for Debt Service is prior to restructuring professional fees and bankruptcy fees. Consolidated Excl. WMLP U.S. Mines Excl. WMLP Canadian Mines (1) (1) (1)
Slide 13: Summary Projected 2018 Financials (Cont'd)
Summary Projected 2018 Financials (Reflects 9+3 Forecast) (Cont’d) Corporate & Other Heritage (1) (1) Source:Company information Note: Dollars and tons in millions. Cash Flow for Debt Service is prior to restructuring professional fees and bankruptcy fees.
Slide 14: Mine-by-Mine Net Reclamation Cash Flow Summary (Excl. WMLP)
Mine-by-Mine Net Reclamation Cash Flow Summary (Excl. WMLP) Source:Company information. Note: Dollars in millions. Total Gross Reclamation Outflows includes costs to perform reclamation, bond collateral postings and other current reclamation. Total Gross Reclamation Inflows includes bond collateral
Slide 15: Heritage Cost Detail
Heritage Cost Detail Projected cash costs related to Heritage liabilities are forecasted as follows: Postretirement Medical: Postretirement medical benefits to retired employees and their dependents, a portion of which is mandated by the Coal Industrial Retiree Act of 1992 pursuant to collective bar
Slide 16: OPEB-Related Liabilities and Cash Flows
OPEB-Related Liabilities and Cash Flows (1) Source:Company information. Liabilities as of December 31, 2017. Note: Dollars in millions.
Slide 17: Preliminary Findings of Performance Optimization Analysis
Section 2 Preliminary Findings of Performance Optimization Analysis
Slide 18: Transformation Update
Transformation Update Result of planning phase is a set of initiatives fully-owned by line leaders These initiatives aggregate to a thorough plan for the business that is embedded into its operations Initiatives include time bound milestones to achieve impact Implementation (January 2019 onwards) Di
Slide 19: Consolidated Cash Flow Available for Debt Service Incl. Potential Savings
Cons. Cash Flow Avail. for Debt Service (Excl. WMLP) Incl. Potent. Savings Cash Flow Available for Debt Service Total Adjusted Cash Flow from Savings Preliminary and illustrative analysis subject to further diligence and material revision Source:Company information Note: Dollars and tons in millions
Slide 20: 13-Week Cash Flow Projections
Section 3 13-Week Cash Flow Projections
Slide 21: Westmoreland 13-Week Cash Flow Projections (Excl. WMLP)
Westmoreland 13-Week Cash Flow Projections (Excl. WMLP) Source:Company information. Note: Dollars in thousands.
Slide 22: Non-GAAP Reconciliation and Measures
Non-GAAP Reconciliation and Measures Westmoreland defines EBITDA as earnings before interest expense, interest income, income taxes, depreciation, depletion, amortization and accretion expense. Adjusted EBITDA is defined by Westmoreland as EBITDA before certain charges to income such as advisory fee
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