RALEIGH, N.C., March 2 /PRNewswire-FirstCall/ -- Waste Industries USA,
Inc. (Nasdaq: WWIN), a regional, non-hazardous solid waste services company,
today reported unaudited financial results for the fourth quarter and year
ended December 31, 2004.
For the quarter ended December 31, 2004, revenue increased 2.7% to
$72.9 million, compared to $70.9 million for the quarter ended December 31,
2003. Net income was $3.9 million, or $0.29 per diluted share, compared to
$0.9 million, or $0.07 per diluted share for the quarters ended December 31,
2004 and 2003, respectively.
For the year ended December 31, 2004, revenue increased 7.9% to
$291.7 million, compared to $270.5 million for the year ended December 31,
2003. For the year ended December 31, 2004, net income was $13.2 million, or
$0.97 per share, compared to $8.9 million before a cumulative effect of a
change in accounting principle, or $0.66 per share, for the year ended 2003.
Results of operations for the three-month period ended December 31, 2004
were impacted by the following items:
-- A gain of $3.5 million (or $0.16 per diluted share, net of tax)
related to the sale of collection and hauling operations consummated
in December 2004; (included in gain on sale of collection and hauling
operations);
-- A gain of $0.9 million (or $0.04 per diluted share, net of tax)
related to the sale of fixed assets primarily associated with our
Norfolk operation; (included in gains on sale of property and
equipment);
-- A charge of $1.4 million (or $0.07 per share diluted share, net of
tax) related to the Company's determination that certain landfill
permitting efforts had a less than probable chance of success;
(included in asset impairment charges).
The 2003 results for the three-month period includes a charge of
$1.8 million (or $0.05 per diluted share, net of tax) related to the
restructuring of officer life insurance.
Commenting on the Company's performance, Jim W. Perry, President and CEO
of Waste Industries USA, said, "We are pleased with our overall performance in
2004 in view of higher fuel and related service delivery costs, and a
continued sluggish economy in many of the secondary markets we serve. Our
internal growth for 2004 from core services accounted for 4.2% of the nearly
8.0% increase in total revenues reflecting our focus on achieving both
balanced growth and operating excellence."
The Company will host a conference call to discuss its fourth quarter
results on Wednesday, March 2, 2005 at 2:00 PM (EST). The call number is
(800) 289-0517 and the confirmation number is 6335425. 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, 2005, and may be accessed by calling (888) 203-1112 and
using confirmation number 6335425.
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, Georgia and Florida.
The tables attached to this press release contain references to operating
income before depreciation and amortization and free cash flow, which are
considered non-GAAP financial measures. Tables reconciling operating income
before depreciation and amortization and free cash flow to the appropriate
GAAP measures for each period presented are included in the attached
supplemental data. 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. Our 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 has included information concerning operating income before
depreciation and amortization and free cash flow because it believes that
operating income before depreciation and amortization and free cash flow
provide additional information for determining its ability to meet debt
service requirements and that they are two indicators upon which the Company,
its lenders and certain investors assess its financial performance and its
capacity to service debt. The Company therefore interprets the trends that
operating income before depreciation and amortization and free cash flow
depict as measures of its liquidity. Likewise, adjusted diluted earnings per
share is included as the Company believes it is a useful representation of the
effects of particular charges on quarterly and annual reported earnings per
share.
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 plans,
objectives or goals are also forward-looking statements. Forward-looking
statements are subject to risks and uncertainties, such as 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. The forward-looking statements made herein are only made as of the
date of this press release and the Company undertakes no obligation to
publicly update such forward-looking statements.
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,
2003 2004 2003 2004
Revenues:
Service $70,649 $72,659 $269,208 $290,864
Equipment 297 215 1,257 861
Total revenues 70,946 72,874 270,465 291,725
Operating cost and expenses:
Operations 47,088 49,709 176,160 196,787
Equipment sales 179 93 780 470
Selling, general and
administrative 10,570 9,772 38,114 37,613
Depreciation and
amortization 7,450 7,420 30,549 29,450
Loss (gain) on sale of
property and equipment 57 (902) 350 (1,274)
Gain on sale of collection
and hauling operations (100) (3,541) (720) (3,482)
Asset impairment 494 1,518 517 1,707
Total operating costs and
expenses 65,738 64,069 245,750 261,271
Operating income 5,208 8,805 24,715 30,454
Interest expense, net 2,757 2,572 9,750 9,803
Other income (39) (128) (96) (304)
Total other expense, net 2,718 2,444 9,654 9,499
Income before income taxes and
cumulative effect of a
change in accounting
principle 2,490 6,361 15,061 20,955
Income tax expense 1,582 2,431 6,171 7,738
Income before cumulative effect
of a change in
accounting principle 908 3,930 8,890 13,217
Cumulative effect of a change
in accounting principle
net of tax benefit of $614 - - (1,067) -
Net Income $908 $3,930 $7,823 $13,217
Earnings per share:
Basic:
Before cumulative effect of a
change in accounting
principle $0.07 $0.29 $0.66 $0.98
Cumulative effect of a change
in accounting principle, net
of tax - - (0.08) -
Net Income $0.07 $0.29 $0.58 $0.98
Diluted:
Before cumulative effect of a
change in accounting
principle $0.07 $0.29 $0.66 $0.97
Cumulative effect of a change
in accounting principle, net
of tax - - (0.08) -
Net Income $0.07 $0.29 $0.58 $0.97
Weighted-Average Number Of
Shares Outstanding:
Basic 13,468 13,492 13,439 13,497
Diluted 13,636 13,672 13,558 13,665
Cash dividends declared and
paid on common stock $1,077 $1,079 $1,077 $2,159
WASTE INDUSTRIES USA, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In Thousands)
(Unaudited)
December 31, December 31,
2003 2004
ASSETS
Current assets:
Cash and cash equivalents $4,127 $2,445
Receivables, net 32,417 34,179
Other 5,215 5,871
Total current assets 41,759 42,495
Property and equipment, net 191,308 198,551
Intangible assets, net 90,122 92,733
Other noncurrent assets 7,339 4,720
Total assets $330,528 $338,499
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Current maturities of
long-term debt $10,883 $10,911
Accounts payable - trade 13,299 14,627
Other accrued liabilities and
deferred revenues 17,627 22,423
Total current liabilities 41,809 47,961
Long-term debt, net of current
maturities 157,657 146,136
Other liabilities 24,103 25,271
Total liabilities 223,569 219,368
Shareholders' equity 106,959 119,131
Total liabilities and
shareholders' equity $330,528 $338,499
WASTE INDUSTRIES USA, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands)
Twelve Months Ended
December 31,
2003 2004
Operating Activities:
Net income $7,823 $13,217
Adjustments to reconcile net income
to net
cash provided by operating
activities:
Depreciation and amortization 30,549 29,450
Asset impairment 517 1,707
Loss (gain) on sale of property
and equipment 350 (1,274)
Cumulative effect of change in
accounting principle 1,067 -
Gain on sale of collection and
hauling operations (720) (3,482)
Stock compensation expense 120 48
(Benefit) provision for deferred
income taxes (1,564) 3,244
Forgiveness of officer loans 1,118 -
Changes in assets and liabilities,
net of effects
from acquisition and disposition
of related businesses (184) 946
Net cash provided by operating
activities 39,076 43,856
Investing Activities:
Acquisitions of related business,
net of cash acquired (39,823) (20,566)
Acquisition liabilities 1,644 (1,519)
Proceeds from sale of property and
equipment 2,510 3,065
Purchases of property and equipment (29,557) (30,655)
Proceeds from sale of collection
and hauling operations 16,302 17,694
Collections on notes receivable - 397
Net cash used in investing
activities (48,924) (31,584)
Financing Activities:
Proceeds from issuance of long term
debt 40,176 19,010
Principal payments of long-term
debt (24,381) (30,727)
Principal payments of capital lease
obligations (439) (160)
Financing costs (2,373) (39)
Dividends paid (1,077) (2,159)
Net proceeds from exercised options 335 121
Net cash provided by (used in)
financing activities 12,241 (13,954)
Increase (decrease) in cash and
cash equivalents 2,393 (1,682)
Cash and cash equivalents,
beginning of period 1,734 4,127
Cash and cash equivalents, end of
period $4,127 $2,445
EARNINGS RELEASE - SUPPLEMENTAL DATA
YEAR ENDED
REVENUE MARGINS 12/31/03 12/31/04
Cost of Operations 65.4% 67.6%
S G & A 14.1% 12.9%
Depreciation and amortization 11.3% 10.1%
Interest expense, (net) 3.6% 3.4%
Income before income tax and cumulative effect
of a change in accounting principle 5.6% 7.2%
Income tax expense 2.3% 2.7%
Net income 2.9% 4.5%
OPERATING INCOME BEFORE
DEPRECIATION AND AMORTIZATION
Operating income $24,715 $30,454
Depreciation 23,944 23,513
Amortization 6,605 5,937
Operating income before depreciation
and amortization $55,264 $59,904
CAPITAL EXPENDITURES DETAIL
Collection & Transportation 17,801 19,238
Landfill Development 11,756 11,417
Total Capital Expenditures 29,557 30,655
FREE CASH FLOW RECONCILIATION
Net cash provided by operating activities $39,076 $43,856
Less: Capital expenditures (29,557) (30,655)
Plus: Proceeds from disposal of assets 2,510 3,065
Free cash flow $12,029 $16,266
YEAR ENDED
12/31/03 12/31/04
TOTAL DEBT & CAPITAL LEASES $168,540 $157,048
DEBT TO TOTAL CAPITAL 61.2% 56.9%
TOTAL LIABILITIES TO EQUITY 2.1 1.8
DAYS SALES OUTSTANDING 38 36
SERVICE REVENUE MIX
Collection 79.2% 79.4%
Disposal and Transfer 15.4% 15.8%
Recycling and Other 5.4% 4.8%
100.0% 100.0%
SERVICE REVENUE GROWTH
Price 0.8%
Volume 3.2%
Energy surcharge 0.2%
Total Internal Growth 4.2%
Commodities 0.4%
Acquisitions 3.4%
Total Service Revenue Growth 8.0%
EARNINGS PER SHARE RECONCILIATION Q4 2003 YTD 2003 Q4 2004 YTD 2004
Diluted EPS as Reported (GAAP Measure) $0.07 $0.58 $0.29 $0.97
Cumulative effect of a change in
accounting principle - 0.08 - -
EPS before cumulative effect of a
change in accounting principle 0.07 0.66 0.29 0.97
Add-backs (charges included in
reported EPS)
Loss on sale of property and equipment - 0.02 - -
Asset impairments 0.01 0.02 0.07 0.08
Restructure of officer life insurance 0.05 0.08 - -
Total add-backs 0.06 0.12 0.07 0.08
Deductions (gains included
in reported EPS)
Gains on disposal of collection and
hauling operations - (0.03) (0.16) (0.16)
Gains on sale of property and
equipment - - (0.04) (0.06)
Total deductions - (0.03) (0.20) (0.22)
EPS net of indicated items
(Non-GAAP measure) $0.13 $0.75 $0.16 $0.83
SOURCE Waste Industries USA, Inc.
 back to top
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
|
