Walter Energy, Alpha Natural earnings beat expectations; Affinion revenue dips, debt gains

By Stephanie N. Rotondo

Phoenix, Oct. 30 – It was another day of earnings for the distressed debt market on Thursday.

In the coal mining space, Walter Energy Inc. and Alpha Natural Resources Inc. released their third-quarter results. Despite weak coal prices, both companies managed to report earnings that beat expectations.

For Walter, the continued depression of coal prices hurt revenues.

Despite the cost-cutting measures taken, some expressed concerns that the effort wasn’t enough.

“We are concerned that despite the positive Q3 performance, normalized cash-burn remains at high levels at current market pricing,” said Brean Capital analyst Lucas Pipes in a note published Thursday.

But while Walter’s bonds improved on its better-than-expected numbers, Alpha Natural’s debt was mixed.

Affinion Group Inc. also came out with numbers. The company experienced a nearly 11% decline in net revenue, but the company’s debt still finished with a firm tone.

The weaker figures were attributed in part to a drop in membership products revenues.

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