Cloud Peak Energy (CLD) Q2 Shipments Fell 22%; Updates FY15 adj.-EBITDA Outlook

Cloud Peak Energy (NYSE: CLD) announced second quarter 2015 shipments and updated its annual Adjusted EBITDA guidance. Results for the second quarter and first six months of 2015 are expected to be announced on July 29, 2015. Conference call details are set forth below.

Second quarter 2015 shipments from the Company’s three mines were 16.0 million tons compared to 20.6 million tons in the second quarter of 2014. For the full year 2015, the Company now expects shipments to be between 74 and 78 million tons.

Additionally, in connection with the preparation and review of Cloud Peak Energy’s financial statements for the second quarter of 2015, the Company determined it will incur a non-cash goodwill impairment charge of approximately $33.4 million for the Company’s 8400 Btu Cordero Rojo Mine, representing a full write down of the Cordero Rojo Mine's goodwill as of June 30, 2015 due to the weak market outlook for 8400 Btu coal. The non-cash goodwill impairment charge is excluded from the Company's EBITDA calculation for the purpose of determining compliance with covenants in its credit facility. Cloud Peak Energy will provide additional detail regarding the goodwill impairment charge in its second quarter 2015 financial results on July 29, 2015.

Based upon preliminary data, the Company currently expects the net loss for the second quarter of 2015 to be between $51 million and $54 million and Adjusted EBITDA(1) to be between $10 million and $12 million. As a result, the Company is lowering the upper end of its full year Adjusted EBITDA guidance range by $10 million, so that full year 2015 Adjusted EBITDA is now expected to be between $110 million and $140 million.

Second quarter shipments from the Company’s three mines were reduced due to low seasonal demand from our utility customers and rail service interruptions due to flooding. Colin Marshall, President and Chief Executive Officer, commented, “While the second quarter shipments were lower than we forecast, we are now in the position where we expect to be able to run at higher shipment rates for the rest of the year allowing us to leave the bottom of our Adjusted EBITDA guidance range unchanged.”

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