RALEIGH, N.C., April 30 /PRNewswire-FirstCall/ --
Waste Industries USA, Inc. (Nasdaq: WWIN), formerly known as Waste Holdings,
Inc., a regional, non-hazardous solid waste services company, today reported
financial results for the first quarter ended March 31, 2003.
For the quarter ended March 31, 2003, the Company reported revenue of
$62.9 million compared to $60.0 million for the quarter ended March 31, 2002.
Operating income was $5.8 million compared to $6.4 million for the comparable
period last year. Income before a cumulative effect of a change in accounting
principle for SFAS 143 was $2.2 million, or $0.16 per share (including the
$0.01 per share dilutive impact for the adoption of SFAS 143) and
$2.3 million, or $0.17 per share for the quarters ended March 31, 2003 and
2002, respectively. Net income was $1.1 million, or $0.08 per share for the
quarter ended March 31, 2003 (including the $0.08 per share dilutive impact
for the cumulative effect of the adoption of SFAS 143) compared to
$2.3 million, or $0.17 per share for the quarter ended March 31, 2002. The
cumulative effect of the change in accounting principle was related to the
Company's adoption, effective January 1, 2003, of Statement of Financial
Accounting Standards No. 143, Accounting for Asset Retirement Obligations
("SFAS 143").
Commenting on the Company's performance, Jim W. Perry, President and CEO
of Waste Industries USA said, "We are pleased with our 1st quarter performance
in view of increased fuel cost, continued weakness in the economy and severe
winter conditions."
The following items negatively impacted results for the quarter ended
March 31, 2003 compared to the same period in 2002:
* Increased fuel costs, net of surcharges, of approximately $200,000
($127,000 net of tax, or $0.01 per share);
* Severe winter weather impact of approximately $180,000 ($114,000 net
of tax, or $0.01 per share) and
* Increased costs of approximately $174,000 ($110,000 net of tax, or
$0.01 per share) related to the implementation of SFAS 143.
For the first quarter ended March 31, 2003, the Company implemented SFAS
143, which changed the method of accounting for the Company's asset retirement
obligations related to its landfills. As a result, on a year to year
comparison, operating costs were $246,000 lower and depreciation and
amortization costs were $420,000 higher than they would have been had the
accounting standards been the same as for the comparable period in 2002.
The Company will host a conference call to discuss its first quarter
results on Wednesday, April 30, 2003 at 2:00 PM (EDT). The call number is
(888) 515-2235 and the confirmation number is 423348. The conference call
will also be broadcast live over the Internet at http://www.waste-ind.com
under the "Investor Relations" tab.
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, Alabama,
Georgia and Florida.
This release contains references to EBITDA and free cash flow, which are
considered non-GAAP financial measures. Tables reconciling EBITDA and free
cash flow to the appropriate GAAP measures for each period presented are
included in the attached supplemental data. The Company defines EBITDA as
income before income taxes plus interest expense (net of interest income),
depreciation and amortization and cumulative effect of change in accounting
principle. The Company defines free cash flow as cash flows from operating
activities plus capital expenditures. EBITDA 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 has included information
concerning EBITDA and free cash flow because it believes that EBITDA 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 EBITDA and free cash flow depict as measures of its liquidity. EBITDA
and free cash flow, both as defined by the Company, may not be comparable to
similarly titled financial measures reported by other companies.
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 economic trends,
risks in the development and operation of landfills, managing growth and
weather conditions, 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.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands, Except Per Share Data)
(Unaudited)
Three Months Ended
March 31,
2002 2003
Revenues:
Service $59,615 $62,486
Equipment 362 447
Total revenues 59,977 62,933
Operating costs and expenses:
Operations 38,076 40,241
Equipment sales 225 282
Selling, general and administrative 8,492 9,061
Depreciation and amortization 6,741 7,508
Total operating costs and expenses 53,534 57,092
Operating income 6,443 5,841
Interest expense (net) 2,743 2,458
Other expense (income) 44 (15)
Total other expense 2,787 2,443
Income before income taxes and
cumulative effect of a change
in accounting principle 3,656 3,398
Income tax expense 1,335 1,240
Income before cumulative effect
of a change in accounting principle 2,321 2,158
Cumulative effect of a change in
accounting principle, net of tax
expense of $614 -- (1,067)
Net Income $2,321 $1,091
Basic and Diluted Earnings per share:
Income before cumulative effect of
a change in accounting principle $0.17 $0.16
Cumulative effect of a change
in accounting principle -- (0.08)
Net income per share $0.17 $0.08
Weighted average common shares outstanding:
Basic 13,334 13,405
Diluted 13,339 13,418
EBITDA $13,140 $13,364
Net cash provided by operating activities $8,168 $10,033
WASTE INDUSTRIES USA, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In Thousands, Except Share Data)
(Unaudited)
December 31, March 31,
2002 2003
ASSETS
Current assets:
Cash and cash equivalents $1,734 $2,374
Accounts receivable - trade, less
allowance for uncollectible accounts
(2002 - $2,237; 2003 - $2,396) 28,200 29,187
Accounts receivable - other 1,395 487
Income taxes receivable 919 --
Inventories 1,552 1,516
Prepaid expenses and other
current assets 3,860 5,791
Deferred income taxes 759 757
Total current assets 38,419 40,112
Property and equipment, net 188,897 187,109
Intangible assets, net 68,338 71,940
Other noncurrent assets 2,854 2,717
Total assets $298,508 $301,878
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Current maturities of long-term debt $11,710 $10,731
Current maturities of capital
lease obligations 599 475
Accounts payable - trade 10,501 10,226
Income taxes payable -- 82
Accrued expenses and other liabilities 9,822 11,997
Deferred revenue 1,997 2,618
Total current liabilities 34,629 36,129
Long-term debt, net of current maturities 140,875 142,303
Deferred income taxes 18,941 18,347
Closure/postclosure liabilities 4,874 4,309
Interest rate swap 2,219 2,147
Commitments and contingencies -- --
Shareholders' equity:
Common stock, no par value, shares
authorized - 80,000,000 shares
issued and outstanding:
2002 - 13,338,005; 2003 - 13,438,657 38,116 38,658
Paid-in capital 7,245 7,245
Retained earnings 54,623 55,714
Accumulated other comprehensive loss (1,366) (1,326)
Shareholders' loans and
other receivables (1,648) (1,648)
Total shareholders' equity 96,970 98,643
Total liabilities and
shareholders' equity $298,508 $301,878
EARNINGS RELEASE - SUPPLEMENTAL DATA
TOTAL REVENUE MARGINS 1Q 02 1Q 03
Total Cost of operations 63.9% 64.4%
S G & A 14.2% 14.4%
Depreciation and amortization 11.2% 11.9%
Interest expense (net) 4.6% 3.9%
Income before income taxes and cumulative
effect of a change in accounting principle 6.1% 5.4%
Income tax expense 2.2% 2.0%
Income before cumulative effect of a change
in accounting principle 3.9% 3.4%
Cumulative effect of a change
in accounting principle 0.0% -1.7%
Net income 3.9% 1.7%
EBITDA 21.9% 21.2%
EBITDA CALCULATION 1Q 02 1Q 03
Net income $2,321 $1,091
Add back:
Income tax expense 1,335 $1,240
Interest expense (net) 2,743 $2,458
Depreciation and amortization 6,741 7,508
Cumulative effect of a change in
accounting principle -- 1,067
$ 13,140 $ 13,364
RECONCILIATION OF EBITDA
EBITDA $13,140 $13,364
Income tax expense (1,335) (1,240)
Interest expense (net) (2,743) (2,458)
Adjustments to reconcile net income to net
cash provided by operating activities
(other than depreciation and amortization)
(Gain) loss on sale of PP&E (10) 11
Provision for deferred income taxes 170 (10)
Changes in operating assets and liabilities (1,054) 366
Net cash provided by operating activities $8,168 $ 10,033
FREE CASH FLOW AND RECONCILIATION OF FREE CASH FLOW
TO NET CASH PROVIDED BY OPERATING AND INVESTING ACTIVITIES
Net cash provided by operating activities $8,168 $10,033
Capex (3,956) (6,522)
Free cash flow 4,212 3,511
Proceeds from sale of property and equipment 185 882
Acquisitions of business -- (4,090)
Net cash provided by operating
and investing activities $4,397 $303
CAPEX DETAIL 1Q 02 1 Q 03
Collection & Transportation $3,257 $5,439
Landfill & Facility Development 699 1,083
Total Capex $3,956 $6,522
AS OF
12/31/02 3/31/03
TOTAL DEBT & CAPITAL LEASES $ 153,184 $ 153,509
TOTAL EQUITY $96,970 $98,643
TOTAL DEBT TO TOTAL CAP 61.2% 60.9%
TOTAL LIABILITIES TO EQUITY 2.08 2.06
WORKING CAPITAL $3,790 $3,983
DAYS SALES OUTSTANDING 37.5 36.8
CASH $1,734 $2,374
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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