Westmoreland Coal Company and Subsidiaries Pro Forma Consolidated Statment of Income For the 9 months ended September 30, 1994 Historical Adjustments ProForma Revenues: Coal 295,444 (43,777) 251,667 Cogeneration 7,437 7,437 Other 1,868 1,868 304,749 (43,777) 260,972 Costs and expenses: Cost of coal sold 270,378 (34,435) 235,943 Cost of sales - Cogeneration 1,893 1,893 Cost of sales Other 1,827 1,827 Depreciation, depletion and amortization 12,695 (1,779) 10,916 Selling and administrative 21,103 (1,137) 19,966 307,896 (37,351) 270,545 Gain on sale of assets 0 0 Income (loss) from operations (3,147) (6,426) (9,573) Interest expense 3,877 (2,224) 1,653 Interest income 793 (4) 789 Other income 977 (497) 480 Loss from operations before income taxes (benefit) and minority interest (5,254) (4,703) (9,957) Income taxes (benefit): Current 1,106 (2,063) (957) Deferred 324 324 1,430 (2,063) (633) Minority Interest 518 518 Net income (loss) (7,202) (2,640) (9,842) Less preferred stock dividends 1,222 1,222 Net loss applicable to common shareholders (8,424) ( 2,640) (11,064) Net loss per share applicable to common shareholders (1.21) (.38) (1.59) The Pro Forma statement removes the impact of Kentucky Criterion Coal Co.'s operations and also removes interest expense associated with the debt owed to the Company's principal creditors. Income and expense related to the sale of the assets of Kentucky Criterion Coal Co. are not shown.