RALEIGH, N.C., Feb. 28 /PRNewswire-FirstCall/ -- Waste Industries USA,
Inc. (Nasdaq: WWIN), a regional, non-hazardous solid waste services company,
today reported preliminary financial results for the fourth quarter and year
ended, December 31, 2005. In the second and fourth quarters of 2005, the
Company sold certain operations in the Atlanta, Georgia region that qualified
as discontinued operations, impacting the previously reported 2004 and 2005
results. All periods have been restated to present the results for these
operations as discontinued operations.
For the quarter ended December 31, 2005, revenue increased 14.2% to $80.8
million, compared to $70.7 million for the quarter ended December 31, 2004.
Operating income for the fourth quarter 2005 increased 36.2% to $9.0 million,
compared to $6.6 million for the same period in 2004. Income from continuing
operations for the fourth quarter 2005 was $3.9 million, or $0.28 per diluted
share, a 55.5% increase from income from continuing operations of $2.5
million, or $0.18 per diluted share, for the fourth quarter of 2004. Loss
from discontinued operations for the fourth quarter 2005 was $0.2 million (net
of income taxes) due primarily to a loss from the sale of operations.
For the twelve months ended December 31, 2005, revenue increased 8.5% to
$310.2 million, compared to $285.9 million for the same period in 2004.
Operating income increased 5.4% to $29.7 million, compared to $28.2 million
for the same period in 2004. Income from continuing operations for the twelve
months ended December 31, 2005 was $12.1 million, or $0.88 per diluted share,
a 2.5% increase from income from continuing operations of $11.8 million, or
$0.86 per diluted share, for the same twelve-month period in 2004. Loss from
discontinued operations for the twelve months ended December 31, 2005 was $0.1
million including the effect of a $0.2 million gain (net of income taxes) from
the sale of operations.
Jim W. Perry, President and CEO of the Company, stated, "Our ongoing
initiatives to achieve productivity gains, improve pricing, internalize more
of our waste, and execute a disciplined growth strategy are showing positive
results. And we believe the momentum achieved in 2005 will help to strengthen
our performance in 2006."
The Company will host a conference call to discuss its fourth quarter
results on March 1, 2006 at 2:00 PM (Eastern Time). The call number is
(800) 262-1292 and the confirmation number is 3994388. The conference call
will also be broadcast live over the Internet at http://www.waste-ind.com
under the "Investor Relations" tab. A replay of the call will be available
through March 15, 2006 and may be accessed by calling (888) 203-1112 and using
confirmation number 3994388.
Waste Industries USA, Inc. is a vertically integrated solid waste services
company that provides collection, transfer, disposal and recycling services to
commercial, industrial and residential customer locations in the states of
North Carolina, South Carolina, Virginia, Tennessee, Mississippi, Georgia and
Florida.
This press release contains forward-looking statements under the Private
Securities Litigation Reform Act of 1995. These forward-looking statements
can generally be identified as such because the statement will include words
such as the Company "believes," "anticipates," "expects" or words of similar
import. Similarly, statements that describe the Company's future performance
plans, objectives or goals are also forward-looking statements. Forward-
looking statements are subject to risks and uncertainties, such as fuel
prices, weather conditions, managing growth, economic trends and risks in the
development and operation of landfills, that could cause actual results to
differ materially from those currently anticipated. Consider these factors
carefully in evaluating the forward-looking statements. Additional
information concerning factors that could cause actual results to differ
materially from those in the forward-looking statements is contained from time
to time in the Company's SEC filings.
WASTE INDUSTRIES USA, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands, Except Per Share Data)
(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
2004 2005 2004 2005
Revenues:
Service revenues $70,471 $80,573 $285,015 $309,591
Equipment revenues 215 180 861 641
Total revenues 70,686 80,753 285,876 310,232
Operating cost and expenses:
Operations 47,712 53,099 191,559 208,421
Equipment sales 93 97 470 384
Selling, general and
administrative 11,824 11,244 39,449 42,439
Depreciation and
amortization 7,390 8,257 29,249 30,501
Gain on sale of property
and equipment and other
assets (903) (926) (1,274) (1,372)
Gain on sale of
collection and hauling
operations (3,541) - (3,482) (2)
Impairment of property
and equipment and other
assets 1,518 - 1,707 143
Total operating costs
and expenses 64,093 71,771 257,678 280,514
Operating income 6,593 8,982 28,198 29,718
Interest expense 2,618 2,438 9,931 9,833
Interest income (47) (35) (128) (96)
Other (128) (40) (304) (231)
Total other expense,
net 2,443 2,363 9,499 9,506
Income from continuing
operations before income
taxes 4,150 6,619 18,699 20,212
Provision for income
taxes 1,616 2,679 6,906 8,125
Income from continuing
operations 2,534 3,940 11,793 12,087
Discontinued operations:
(Loss) income from
discontinued operations,
net of income taxes (24) (9) 4 (312)
(Loss) gain on sale of
operations, net of income
taxes - (205) - 184
(Loss) income from
discontinued
operations (24) (214) 4 (128)
Net income $2,510 $3,726 $11,797 $11,959
Earnings per share:
Basic:
Income from continuing
operations $0.19 $0.29 $0.87 $0.88
Discontinued operations - (0.02) - (0.01)
Net income $0.19 $0.27 $0.87 $0.87
Diluted:
Income from continuing
operations $0.18 $0.28 $0.86 $0.88
Discontinued operations - (0.01) - (0.01)
Net income $0.18 $0.27 $0.86 $0.87
Weighted-Average Number Of
Shares Outstanding:
Basic 13,492 13,723 13,497 13,661
Diluted 13,672 13,871 13,665 13,821
WASTE INDUSTRIES USA, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In Thousands)
(Unaudited)
December 31, December 31,
2004 2005
ASSETS
Current assets:
Cash and cash equivalents $2,445 $1,575
Receivables, net 31,602 36,193
Other 7,028 4,136
Total current assets 41,075 41,904
Property and equipment, net 198,551 216,390
Intangible assets, net 92,702 105,925
Other noncurrent assets 4,720 3,952
Total assets $337,048 $368,171
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Current maturities of
long-term debt 10,733 10,733
Accounts payable -- trade 14,627 16,579
Other accrued liabilities
and deferred revenues 22,570 28,929
Total current
liabilities 47,930 56,241
Long-term debt, net of
current maturities 145,930 155,212
Other liabilities 25,477 27,219
Total liabilities 219,337 238,672
Shareholders' equity: 117,711 129,499
Total liabilities and
shareholders' equity $337,048 $368,171
WASTE INDUSTRIES USA, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands)
(Unaudited)
Twelve Months Ended
December 31,
2004 2005
Operating Activities:
Net income $11,797 $11,959
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation and amortization 29,450 30,720
Amortization of debt issuance
costs 744 967
Impairment of property and
equipment and other assets 1,707 143
Gain on sale of property
and equipment and other
assets (1,274) (1,372)
Gain on sale of collection
and hauling operations (3,482) (182)
Stock compensation expense 48 79
Provision for deferred
income taxes 2,525 332
Provision for doubtful
accounts 3,687 2,091
Changes in assets and
liabilities, net of effects
from acquisition and
disposition of related
businesses 1,679 1,633
Net cash provided by
operating activities 46,881 46,370
Investing Activities:
Acquisitions of related
business, net of cash
acquired (21,785) (31,937)
Settlement of acquisition
liabilities (1,537) (297)
Proceeds from insurance - 290
Increase in restricted cash - (175)
Proceeds from sale of property
and equipment 3,220 3,415
Purchases of property and
equipment (32,199) (34,264)
Proceeds from sale of
collection and hauling
operations 17,694 7,988
Net cash used in
investing activities (34,607) (54,980)
Financing Activities:
Proceeds from issuance of
long-term debt 19,010 47,697
Principal payments of long-
term debt (30,727) (38,415)
Principal payments of capital
lease obligations (160) (212)
Financing costs (39) (68)
Payment of dividends (2,161) (3,290)
Net proceeds from exercise of
stock options 121 2,028
Net cash (used in)
provided by financing
activities (13,956) 7,740
Decrease in cash and cash
equivalents (1,682) (870)
Cash and cash equivalents,
beginning of period 4,127 2,445
Cash and cash equivalents, end
of period $2,445 $1,575
EARNINGS RELEASE -- SUPPLEMENTAL DATA (dollars in thousands)
YEAR ENDED
REVENUE MARGINS 12/31/04 12/31/05
Cost of operations 67.2% 67.3%
S G & A 13.8% 13.7%
Depreciation and amortization 10.2% 9.8%
Interest expense, (net) 3.4% 3.1%
Income from continuing operations
(pre-tax) 6.5% 6.5%
Income tax expense 2.4% 2.6%
Income from continuing operations 4.1% 3.9%
OPERATING INCOME BEFORE DEPRECIATION AND AMORTIZATION *
Operating income $28,198 $29,718
Depreciation and amortization 29,249 30,501
Operating income before
depreciation and
amortization $57,447 $60,219
CAPITAL EXPENDITURES DETAIL
Collection & Transportation $20,782 $21,493
Landfill Development 11,417 12,771
Total capital expenditures $32,199 $34,264
FREE CASH FLOW RECONCILIATION *
Net cash provided by operating
activities $46,881 $46,370
Less: Capital expenditures (32,199) (34,264)
Plus: Proceeds from disposal
of assets 3,220 3,415
Free cash flow $17,902 $15,521
12/31/04 12/31/05
DEBT TO TOTAL CAPITAL 57.2% 56.3%
(includes capital leases)
TOTAL LIABILITIES TO EQUITY 1.9 1.8
DAYS SALES OUTSTANDING 36 34
SERVICE REVENUE MIX
Collection:
Industrial 30.6% 27.9%
Commercial 26.9% 27.2%
Residential 19.5% 21.1%
Disposal and transfer 15.7% 16.3%
Recycling service 1.8% 1.6%
Recycled commodity sales 1.7% 1.5%
Other 3.8% 4.4%
Total Service Revenue 100.0% 100.0%
SERVICE REVENUE GROWTH
Price 0.8% 0.8%
Volume 3.2% 1.9%
Energy surcharge 0.2% 1.0%
Total internal growth 4.2% 3.7%
Recycling commodities 0.4% -0.1%
Acquisitions 3.4% 5.0%
Total service revenue growth 8.0% 8.6%
* Operating income before depreciation and amortization and free cash flow
are considered non-GAAP financial measures. The Company defines free
cash flow as cash flows from operating activities less capital
expenditures plus proceeds from the sale of fixed assets. Operating
income before depreciation and amortization and free cash flow do not
represent, and should not be considered as, an alternative to net income
or cash flows from operating, investing and financing activities, each
as determined in accordance with GAAP. The Company's definitions of
operating income before depreciation and amortization and free cash flow
might not be comparable to similarly titled measures reported by other
companies. The Company believes that the presentation of operating
income before depreciation and amortization is useful to investors
because it provides important information of the Company's operating
performance exclusive of certain non-cash costs. The Company has
included information concerning free cash flow because it believes it
provides additional information for determining its ability to meet debt
service requirements and that this measure is an indicator upon which
the Company, its lenders and some investors assess its financial
performance and its capacity to service debt. The Company therefore
interprets free cash flow trends as a measure of its liquidity.
SOURCE Waste Industries USA, Inc.
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Related links:
http://www.waste-ind.com
Company News On-Call:
http://www.prnewswire.com/comp/120685.html
CONTACT:
Carol Dalton of Waste Industries USA, Inc.,
+1-919-325-3000
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