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WESTMORELAND ANNOUNCES YEAR-END 1992 FINANCIAL RESULTS

 PHILADELPHIA, March 12 /PRNewswire/ -- Westmoreland Coal Company (NYSE: WCX) today announced its year-end and fourth quarter 1992 financial results which included special charges aggregating $36.1 million.
 Fourth Quarter Earnings and Sales
 The company incurred a loss in the fourth quarter of $36.5 million, including special charges aggregating $36.1 million. A special charge in the amount of $28.2 million was accrued to establish a reserve for potentially uncollectible trade receivables and notes including $20.5 million for loans and a guarantee obligation with respect to a coal supplier that filed for bankruptcy under Chapter 11 in December 1992. Additional amounts were accrued to increase the company's reserve for workers' compensation obligations by $3.9 million and its reserve for reclamation obligations by $2.1 million in order to reflect current cost estimates. Carrying values of a cogeneration investment and supplies inventory were reduced by $1.5 million and $400,000, respectively.
 Revenues for the fourth quarter were $130.9 million, as compared to the $141.0 million for the same period of 1991. Coal revenue was $129.5 million from 4.7 million tons sold, compared to $138.8 million from 5.1 million tons sold for the same period of 1991.
 Causes of the lower revenue and tons sold during the fourth quarter are a continuation of causes identified in previous quarters: export sales decreased because of a generally softened market; the closing of two mines of the previously mentioned, bankrupt coal producer; and electric utility customers of Westmoreland Resources, Inc. required lower tonnage due to the mild weather in their service areas in 1992.
 Other revenue sources, comprised principally of Cleancoal Terminal Company, decreased to $711,000 in the fourth quarter compared to $896,000 in the fourth quarter of 1991 due to lower volume and fees.
 Revenue from co-generation was $694,000 for the period, compared to $1.3 million for the fourth quarter of 1991. The higher revenue in 1991 is attributable to non-recurring development and venture management fees.
 Year-End Earnings and Sales
 The company's loss for the year is $41.0 million compared to a loss of $13.4 million for 1991.
 Total revenues for the year were $541.0 million compared to $568.4 million in 1991.
 Coal revenue for the year was $533.5 million from 19.4 million tons sold compared to $564.8 million from 20.6 million tons sold in 1991.
 Other revenue is up at $2.8 million in 1992 compared to $2.3 million in 1991.
 Co-generation revenue increased substantially in 1992 to $4.7 million compared to $1.3 million in the previous year. This increase is directly attributable to the commencement of operation of three cogeneration plants in 1992. The total cogeneration revenue included $2.3 million in non-recurring development fees in 1992.
 The company will adopt the Statement of Financial Accounting Standards No. 106 in 1993 and will elect to amortize its transition obligation over a 20-year period. Under this new standard, the cost of postretirement benefits, other than pensions, must be recognized on a current basis as employees perform services to earn the benefits rather than expensed on a "pay-as-you-go" basis as the costs are incurred. The effect of this adoption on 1993 earnings will be an additional noncash charge of approximately $10.0 to $11.0 million.
 As of Dec. 31, 1992, the company was not in compliance with certain covenants of its loan agreements. As a result of this, amounts available under the company's revolving credit agreement were reduced. The company is currently negotiating with its bank group for an amendment that would correct this state of non-compliance. It is likely that the credit amount available to the company under its revolving credit arrangement will be permanently reduced. The company is taking steps to meet its funding requirements from other sources.
 WESTMORELAND COAL COMPANY
 Financial Highlights -- Fourth Quarter 1992
 (Unaudited; in thousands, except per-share data)
 Periods ended Three months Twelve months
 Dec. 31 1992 1991 1992 1991
 Tons sold:
 Own operations 2,930 2,848 11,774 11,570
 For others 1,754 2,241 7,606 9,057
 Total 4,684 5,089 19,380 20,627
 Revenues:
 Coal $129,519 $138,805 $533,473 $564,823
 Cogeneration 694 1,323 4,679 1,330
 Other 711 896 2,816 2,252
 Total $130,924 $141,024 $540,968 $568,405
 Income (loss) from operations:
 Coal $(33,216) $(6,394) $(35,506) $(5,503)
 Cogeneration (916) 816 1,679 (223)
 Other (156) (507) (383) (1,274)
 Total $(34,288) $(6,085) $(34,210) $(7,000)
 Net income (loss) $(36,518) $(7,407) $(41,024) $(13,402)
 Less preferred stock dividends 1,222 --- 2,362 ---
 Net income (loss) available
 to common shareholders $(37,740) $(7,407) $(43,386) $(13,402)
 Earnings (loss) per share
 available to common
 shareholders $(5.43) $(.89) $(5.68) $(1.62)
 WESTMORELAND COAL COMPANY
 Consolidated Statements of Income
 (Unaudited; in thousands, except per-share data)
 Periods ended Three months Twelve months
 Dec. 31 1992 1991 1992 1991(A)
 Revenues:
 Coal $129,519 $138,805 $533,473 $564,823
 Cogeneration 694 1,323 4,679 1,330
 Other 711 896 2,816 2,252
 Total 130,924 141,024 540,968 568,405
 Costs and expenses:
 Cost of coal sold 122,991 133,456 496,953 525,321
 Cost of sales-Cogeneration 1,435 340 2,380 925
 Cost of sales-Other 551 1,113 2,036 2,371
 Depreciation, depletion and
 amortization 5,533 5,765 22,570 23,129
 Selling and administrative 34,702 6,435 51,239 23,659
 Total 165,212 147,109 575,178 575,405
 Income (loss) from
 operations (34,288) (6,085) (34,210) (7,000)
 Interest expense 895 1,073 4,164 4,416
 Interest income 274 225 603 1,700
 Other income (loss) 660 278 1,785 187
 Income (loss) before income
 taxes (benefit) and
 minority interest (34,249) (6,655) (35,986) (9,529)
 Income taxes (benefit):
 Current 1,588 674 4,004 3,235
 Deferred (172) (92) (509) (482)
 Total 1,416 582 3,495 2,753
 Minority interest 853 170 1,543 1,120
 Net income (loss) $(36,518) $(7,407) $(41,024) $(13,402)
 Less preferred stock dividend 1,222 --- 2,362 ---
 Net income (loss) available
 to common shareholders $(37,740) $(7,407) $(43,386) $(13,402)
 Earnings (loss) per share
 available to common
 shareholders $(5.43) $(.89) $(5.68) $(1.62)
 Weighted average number of
 common shares outstanding 6,954 8,250 7,635 8,250
 (A) Certain amounts have been restated to agree with current classifications.
 WESTMORELAND COAL COMPANY AND SUBSIDIARIES
 Consolidated Statements of Cash Flows
 (In thousands)
 Years ended Dec. 31 1992 1991 1990
 Cash flows from operating activities:
 Net income (loss) $(41,024) $(13,402) $12,529
 Adjustments to reconcile net income
 to net cash provided (used)
 by operating activities:
 (Gain) loss on disposition of assets (12) 423 (102)
 Depreciation, depletion
 and amortization 22,570 23,129 22,873
 Deferred income taxes 766 (482) (502)
 Decrease in accrual for
 pneumoconiosis benefits (1,979) (1,443) (2,114)
 Minority interest in WRI income 1,543 1,120 2,007
 (Increase) decrease in customers'
 accounts receivable net of
 allowance for doubtful accounts 4,212 (13,559) 10,313
 (Increase) decrease in
 other receivables 3,717 (2,211) 2,424
 (Increase) decrease in inventories 5,403 (4,264) (2,319)
 Increase (decrease) in trade payables (9,227) 12,802 1,080
 Increase (decrease) in other accounts
 payable and accrued expenses 1,976 (4,035) (1,238)
 Increase (decrease) in
 income taxes payable 472 552 (170)
 Increase (decrease) in
 long-term accruals 15,683 707 (4,524)
 Other (1,551) (1,760) (2,037)
 Net cash provided (used)
 by operating activities 2,549 (2,423) 38,220
 Cash flows from investing activities:
 Fixed asset additions (33,694) (15,614) (14,823)
 Decrease in long-term investments 1,475 1,525 165
 Investment in cogeneration projects (9,361) 67 48
 Proceeds from sales of
 investments and assets 275 189 658
 Net cash used in investing activities (41,305) (13,833) (13,952)
 Cash flows from financing activities:
 Proceeds from long-term debt 14,500 --- ---
 Repayment of long-term debt (8,479) (8,876) (9,108)
 Issuance of preferred stock 54,528 --- ---
 Retirement of treasury shares (18,496) --- ---
 Dividends paid to shareholders (3,573) (2,640) (2,640)
 Dividends paid to minority
 shareholders/Adjustment to minority (2,809) (1,680) (1,840)
 Net effect of ISO transactions (15) (141) (172)
 Net cash provided (used)
 in financing activities 35,656 (13,337) (13,760)
 Net increase (decrease) in
 cash and cash equivalents (3,100) (29,593) 10,508
 Cash and cash equivalents,
 beginning of year 13,849 43,442 32,934
 Cash and cash equivalents,
 end of year $10,749 $13,849 $43,442
 Supplemental disclosures
 of cash flow information:
 Cash paid during the year for:
 Interest $4,164 $4,416 $5,060
 Income taxes, net 2,950 2,709 3,744
 Supplemental disclosures of non-cash investing and financing activities: the company incurred capital lease obligations of $35,000, $152,000 and $420,000 in 1992, 1991 and 1990, respectively, to finance new equipment.
 See accompanying Summary of Significant Accounting Policies and Notes to Consolidated Financial Statements.
 WESTMORELAND COAL COMPANY
 Consolidated Balance Sheets
 (Unaudited; in thousands)
 Dec. 31, 1992 Dec. 31, 1991(A)
 ASSETS
 Current Assets:
 Cash and cash equivalents $10,749 $13,849
 Receivables, net 67,690 75,995
 Inventories 21,652 27,055
 Other current assets 903 1,048
 Total current assets 100,994 117,947
 Net property, plant and equipment 204,051 193,155
 Investment in Cogeneration 11,736 (122)
 Other assets 7,844 9,744
 Total assets $324,625 $320,724
 LIABILITIES AND SHAREHOLDERS' EQUITY
 Current Liabilities:
 Current installments of
 long-term debt $6,663 $8,473
 Accounts payable and
 accrued expenses 57,673 64,924
 Dividends payable 1,222 ---
 Taxes on income 2,857 2,335
 Total current liabilities 68,415 75,732
 Long-term debt 37,745 29,879
 Accrual for pneumoconiosis benefits 19,522 21,501
 Other liabilities 38,910 23,227
 Deferred income taxes 15,226 14,510
 Minority interest 10,330 11,596
 Shareholders' equity 134,477 144,279
 Total liabilities and
 shareholders' equity $324,625 $320,724
 (A) Certain amounts have been restated to agree with current classifications.
 WESTMORELAND COAL COMPANY
 Tons Sold
 (Unaudited; in thousands)
 Periods ended Three months Twelve months
 Dec. 31 1992 1991(A) 1992 1991(A)
 COAL SALES:
 Inland 3,602 3,429 14,567 14,789
 Export 1,082 1,660 4,813 5,838
 Total Coal Sales 4,684 5,089 19,380 20,627
 COAL SOURCES:
 Virginia Division 1,207 1,142 4,708 4,325
 Hampton Division 381 390 1,745 1,543
 Criterion Coal Co. 418 363 1,786 1,600
 Pine Branch Mining Co. 24 --- 44 ---
 Westmoreland
 Resources, Inc. 900 953 3,491 4,102
 Total Westmoreland
 Operations 2,930 2,848 11,774 11,570
 For others 1,754 2,241 7,606 9,057
 Total Coal Sources 4,684 5,089 19,380 20,627
 (A) Restated to agree with current classifications.
 /delval/
 -0- 3/12/93
 /CONTACT: Stephen N. Anderson of Westmoreland Coal, 215-545-2500/
 (WCX)


CO: Westmoreland Coal Company ST: Pennsylvania IN: MNG SU: ERN

MJ-CC -- PH011 -- 5514 03/12/93 12:56 EST
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Date:Mar 12, 1993
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