RALEIGH, N.C., April 28 /PRNewswire-FirstCall/ -- Waste Industries USA,
Inc. (Nasdaq: WWIN), a regional, non-hazardous solid waste services company,
today reported unaudited financial results for the first quarter ended
March 31, 2004.
For the quarter ended March 31, 2004, revenue increased 10.0% to
$69.2 million, compared to $62.9 million for the quarter ended March 31, 2003.
Operating income for the first quarter 2004 increased 18.0% to $6.9 million,
compared to operating income of $5.9 million in the first quarter of 2003.
Net income for the first quarter 2004 was $2.8 million, or $0.21 per share, a
29.2% increase over net income of $2.2 million or $0.16 per share, before a
cumulative effect of a change in accounting principle as a result of the
adoption of Statement of Financial Accounting Standards No. 143, Accounting
for Asset Retirement Obligations, (SFAS 143) in the first quarter of 2003.
Commenting on the Company's performance, Jim W. Perry, President and CEO
of Waste Industries USA, said, "In spite of an icy January and February, we
are pleased with our performance for the 1st quarter. While total revenues
increased by 10%, operating income improved by 18% and our earnings per share
was $0.21 vs. $0.16 a year ago. Our results reflect the successful
integration of recent acquisitions, and our continued focus on improving our
productivity, lowering our cost, and executing a selective pricing strategy.
The increased demand for our services and improved economic conditions give us
reason to be optimistic about the balance of 2004."
The Company will host a conference call to discuss its first quarter
results on Thursday, April 29, 2004 at 2:00 PM (EST). The call number is
(800) 946-0742 and the confirmation number is 540338. 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 May
12, 2004 at (888) 203-1112 with a confirmation number of 540338.
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.
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 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 some
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.
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,
economic trends, managing growth, 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
March 31,
2003 2004
Revenues:
Service $62,486 $69,021
Equipment 447 219
Total revenues 62,933 69,240
Operating cost and expenses:
Operations 40,212 45,551
Equipment sales 293 127
Selling, general and
administrative 9,068 9,413
Depreciation and amortization 7,501 7,339
Gain on sale of property and
equipment (11) (117)
Total operating costs and
expenses 57,063 62,313
Operating income 5,870 6,927
Interest expense (net) 2,458 2,541
Other income (15) (65)
Total other expense (income)
net 2,443 2,476
Income before income taxes and
cumulative effect of a change
in accounting principle 3,427 4,450
Income tax expense 1,240 1,625
Income before cumulative effect of a
change in accounting principle 2,187 2,825
Cumulative effect of a change in
accounting principle net of tax
benefit of $614 (1,067) -
Net Income $1,120 $2,825
Earnings per share basic and diluted:
Before cumulative effect of a
change in accounting principle $0.16 $0.21
Cumulative effect of a change in
accounting principle, net of tax (0.08) -
Net Income $0.08 $0.21
Weighted-Average Number Of Shares
Outstanding:
Basic 13,405 13,493
Diluted 13,418 13,667
WASTE INDUSTRIES USA, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In Thousands, Except Share Data)
(Unaudited)
December 31, March 31,
2003 2004
ASSETS
Current assets:
Cash and cash equivalents $4,127 $1,782
Accounts receivable -
trade, less allowance for
uncollectible accounts
(2003 - $2,608; 2004 - $2,645) 31,235 30,170
Accounts receivable - other 1,182 1,203
Inventories 1,427 1,548
Prepaid expenses and other
current assets 2,438 2,612
Deferred income taxes 1,350 1,248
Total current assets 41,759 38,563
Property and equipment, net 190,871 187,642
Intangible assets, net 90,122 90,482
Restricted cash - bonds 822 822
Deferred financing costs 2,834 2,631
Other noncurrent assets 4,120 4,344
Total assets $330,528 $324,484
LIABILITIES AND SHAREHOLDERS'
EQUITY
Current liabilities:
Current maturities of long-
term debt $10,723 $10,733
Current maturities of
capital lease obligations 160 51
Accounts payable - trade 13,299 10,867
Income taxes payable 841 374
Accrued expenses and other
liabilities 10,643 12,701
Acquisition liabilities 1,949 1,842
Closure/postclosure
liabilities 816 4,915
Derivative liabilities 1,212 935
Deferred revenue 2,421 2,947
Total current liabilities 42,064 45,365
Long-term debt, net of current
maturities 157,657 149,076
Deferred income taxes 18,240 18,151
Closure/postclosure
liabilities 5,348 1,516
Derivative liabilities 260 540
Commitments and contingencies - -
Shareholders' equity:
Common stock, no par value,
shares authorized -
80,000,000 shares
issued and outstanding:
2003 - 13,442,402; 2004 -
13,497,168 39,139 39,171
Paid-in capital 7,342 7,342
Retained earnings 61,369 64,194
Accumulated other
comprehensive loss (891) (871)
Total shareholders' equity 106,959 109,836
Total liabilities and
shareholders' equity $330,528 $324,484
WASTE INDUSTRIES USA, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands)
(Unaudited)
Three Months Ended
March 31,
2003 2004
Operating Activities:
Net income $1,120 $2,826
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation and amortization 7,501 7,339
Gain on sale of property and
equipment (11) (117)
Cumulative effect of accounting
change and accounting principle 1,067 -
Stock compensation expense 5 5
Benefit for deferred income
taxes (624) (1)
Changes in assets and liabilities,
net of effects from acquisition and
disposition of related businesses 538 56
Net cash provided by operating
activities 9,596 10,108
Investing Activities:
Acquisitions of related business,
net of cash acquired (4,090) (430)
Acquisition liabilities 465 (107)
Proceeds from sale of property and
equipment 882 760
Purchases of property and equipment (6,544) (4,020)
Net cash used in investing
activities (9,287) (3,797)
Financing Activities:
Proceeds from issuance of long term
debt 5,000 3,000
Principal payments of long-term
debt (4,550) (11,571)
Principal payments of capital lease
obligations (124) (109)
Financing costs - (3)
Net proceeds from exercised options 5 27
Net cash (used in) provided by
financing activities 331 (8,656)
(Decrease) increase in cash and
cash equivalents 640 (2,345)
Cash and cash equivalents,
beginning of period 1,734 4,127
Cash and cash equivalents, end of
period $2,374 $1,782
Investing Activity - Restricted Cash
- Bonds $- $822
Supplemental disclosures of cash flow
information:
Cash paid for interest $2,093 $2,380
Cash paid for taxes $239 $2,116
EARNINGS RELEASE - SUPPLEMENTAL DATA (dollars in thousands)
12/31/03 3/31/04
REVENUE MARGINS 1 Q 03 1 Q 04 TOTAL DEBT &
CAPITAL LEASES $168,540 $159,860
Cost of operations 64.3% 65.8%
S G & A 14.4% 13.6%
Depreciation and TOTAL EQUITY $106,959 $109,836
amortization 11.9% 10.6%
Interest expense, DEBT TO TOTAL
(net) 3.9% 3.7% CAPITAL 61.2% 59.3%
Income before
income tax 5.4% 6.4%
Income tax expense 2.0% 2.3% TOTAL LIABILITIES
Net income before TO EQUITY 2.1 2.0
cumulative effect 3.5% 4.1%
CAPITAL EXPENDITURES DETAIL
Collection &
Transportation $5,461 $3,398 DAYS SALES
OUTSTANDING 38 39
Landfill
Development 1,083 622
Total Capital
Expenditures $6,544 $4,020 CASH $4,127 $1,782
SERVICE REVENUE GROWTH SERVICE REVENUE MIX
Price 0.7% 0.5% Collection 80.0%
Volume -0.2% 3.4% Disposal and
Transfer 15.0%
Energy surcharge 0.4% 0.4% Recycling
and Other 5.0%
Total Internal
Growth 0.9% 4.3% 100.0%
Recycling
commodities 0.5% 0.3%
Acquisitions 3.4% 5.9%
Total Service
Revenue Growth 4.8% 10.5%
OPERATING INCOME BEFORE
DEPRECIATION AND
AMORTIZATION
Operating income $5,870 $6,927
Depreciation and
amortization 7,501 7,339
Operating income
before
depreciation
and
amortization $13,371 $14,266
FREE CASH FLOW RECONCILIATION
Net cash provided
by operating
activities $9,596 $10,108
Less: Capital
expenditures (6,544) (4,020)
Plus: Proceeds
from disposal
of assets 882 760
Free cash
flow $3,934 $6,848
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,
+1-919-325-3000
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