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, 2005.
For the quarter ended March 31, 2005, revenue increased 3.7% to $71.8
million, compared to $69.2 million for the quarter ended March 31, 2004.
Operating income for the first quarter of 2005 decreased 4.3% to $6.6 million,
compared to operating income of $6.9 million for the first quarter of 2004.
Net income was $2.6 million, or $0.19 per diluted share, compared to $2.8
million, or $0.21 per diluted share for the quarters ended March 31, 2005 and
2004, respectively.
Commenting on the Company's performance, Jim W. Perry, President and CEO
of Waste Industries USA, Inc., said, "While we were pleased with our revenue
growth for the quarter, drastic increases in the cost of fuel and costs
associated with integrating acquired operations in Atlanta had an adverse
impact on our operating margin."
The Company will host a conference call to discuss its fourth quarter
results on Friday, April 29, 2005 at 2:00 PM (EDT). The call number is (800)
946-0712 and the confirmation number is 4535060. 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
13, 2005, and may be accessed by calling (888) 203-1112 and using confirmation
#4535060.
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 may contain 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
March 31,
--------- ---------
2004 2005
--------- ---------
Revenues:
Service $69,021 $71,673
Equipment 219 154
--------- ---------
Total revenues 69,240 71,827
--------- ---------
Operating cost and expenses:
Operations 45,551 48,389
Equipment sales 127 106
Selling, general and
administrative 9,413 9,521
Depreciation and amortization 7,339 7,078
Gain on sale of property and
equipment (117) (25)
Asset impairments - 126
--------- ---------
Total operating costs and
expenses 62,313 65,195
--------- ---------
Operating income 6,927 6,632
--------- ---------
Interest expense (net) 2,542 2,331
Other income (65) (21)
--------- ---------
Total other expense, net 2,477 2,310
--------- ---------
Income before income taxes 4,450 4,322
Income tax expense 1,625 1,709
--------- ---------
Net Income $2,825 $2,613
========= =========
Earnings per share:
--------- ---------
Basic $0.21 $0.19
========= =========
--------- ---------
Diluted $0.21 $0.19
========= =========
Weighted-Average Number Of Shares
Outstanding:
Basic 13,493 13,538
Diluted 13,658 13,774
WASTE INDUSTRIES USA, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In Thousands, Except Share Data)
December 31, March 31,
2004 2005
--------- ---------
ASSETS (Unaudited)
Current assets:
Cash and cash equivalents $2,445 $940
Receivables, net 31,602 28,480
Other 7,028 6,914
--------- ---------
Total current assets 41,075 36,334
--------- ---------
Property and equipment, net 198,551 199,066
Intangible assets, net 92,702 94,710
Other noncurrent assets 4,720 4,471
--------- ---------
Total assets $337,048 $334,581
========= =========
LIABILITIES AND SHAREHOLDERS'
EQUITY
Current liabilities:
Current maturities of long-
term debt $10,733 $10,733
Accounts payable - trade 14,627 12,796
Other accrued liabilities and
deferred revenues 22,570 21,644
--------- ---------
Total current liabilities 47,930 45,173
--------- ---------
Long-term debt, net of current
maturities 145,930 140,358
Other liabilities 25,477 27,065
--------- ---------
Total liabilities 219,337 212,596
Shareholders' equity 117,711 121,985
--------- ---------
Total liabilities and
shareholders' equity $337,048 $334,581
========= =========
WASTE INDUSTRIES USA, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands)
(Unaudited)
Three Months Ended
March 31,
-------------------
2004 2005
--------- ---------
Operating Activities:
Net income $2,825 $2,613
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation and amortization 7,339 7,078
Amortization of debt issuance
costs 186 181
Asset impairments - 126
Gain on sale of property and
equipment (117) (25)
Stock compensation expense 5 14
Provision for deferred income
taxes 1 829
Provision for doubtful accounts 470 655
Changes in operating assets and
liabilities, net of effects
from acquisition and disposition
of related businesses (601) (822)
--------- ---------
Net cash provided by
operating activities 10,108 10,649
--------- ---------
Investing Activities:
Acquisitions of related business,
net of cash acquired (430) (2,510)
Settlement of acquisition
liabilities (107) (298)
Collection of notes receivable - 1,060
Proceeds from sale of insurance
policy - 164
Proceeds from sale of property and
equipment 760 392
Purchases of property and equipment (4,020) (6,782)
--------- ---------
Net cash used in
investing activities (3,797) (7,974)
--------- ---------
Financing Activities:
Proceeds from issuance of long-term
debt 3,000 5,000
Principal payments of long-term
debt (11,571) (10,572)
Principal payments of capital lease
obligations (109) (56)
Financing costs (3) -
Net proceeds from exercised options 27 1,448
--------- ---------
Net cash used in
financing activities (8,656) (4,180)
--------- ---------
DECREASE IN CASH AND CASH
EQUIVALENTS (2,345) (1,505)
--------- ---------
CASH AND CASH EQUIVALENTS,
BEGINNING OF PERIOD 4,127 2,445
--------- ---------
CASH AND CASH EQUIVALENTS, END OF
PERIOD $1,782 $940
========= =========
SUPPLEMENTAL DISCLOSURES OF CASH FLOW
INFORMATION
Cash paid for interest $2,380 $2,054
========= =========
Cash paid for taxes $2,116 $1,940
========= =========
EARNINGS RELEASE - SUPPLEMENTAL DATA
QUARTER ENDED
REVENUE MARGINS 3/31/04 3/31/05
------- -------
Cost of Operations 65.8% 67.4%
S G & A 13.6% 13.3%
Depreciation and amortization 10.6% 9.9%
Interest expense, (net) 3.7% 3.3%
Income before income tax 6.4% 6.0%
Income tax expense 2.3% 2.4%
Net income 4.1% 3.6%
OPERATING INCOME BEFORE DEPRECIATION AND
AMORTIZATION
Operating income $ 6,927 $6,632
Depreciation 5,779 5,649
Amortization 1,560 1,429
------- -------
Operating income before depreciation
and amortization $14,266 $13,710
CAPITAL EXPENDITURES DETAIL
Collection & Transportation $ 3,398 $5,100
Landfill Development 622 1,682
------- -------
Total Capital Expenditures $ 4,020 $6,782
FREE CASH FLOW RECONCILIATION
Net cash provided by operating activities $10,108 $10,518
Less: Capital expenditures (4,020) (6,782)
Plus: Proceeds from disposal of assets 760 392
------- -------
Free Cash flow $ 6,848 $4,128
12/31/04 3/31/05
-------- -------
DEBT TO CAPITALIZATION 57.2% 55.4%
(includes capital leases)
TOTAL LIABILITIES TO EQUITY 1.9 1.7
DAYS SALES OUTSTANDING 36 37
QUARTER ENDED
SERVICE REVENUE BREAKOUT 3/31/04 3/31/05
-------- --------
Collection:
Industrial 29.7% 27.2%
Commercial 27.5% 26.9%
Residential 20.9% 23.1%
Disposal and transfer 14.7% 15.8%
Recycling service 1.9% 1.8%
Recycled commodity sales 1.5% 1.6%
Other 3.8% 3.6%
------- -------
Total service revenue 100.0% 100.0%
SERVICE REVENUE GROWTH
Price 0.5% 1.2%
Volume 3.4% 0.9%
Energy surcharge 0.4% -0.1%
------- -------
Total Internal Growth 4.3% 2.0%
Commodities 0.3% 0.1%
Acquisitions 5.9% 1.7%
------- -------
Total Service Revenue Growth 10.5% 3.8%
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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