RALEIGH, N.C., May 2 /PRNewswire-FirstCall/ -- Waste Industries USA,
Inc. (Nasdaq: WWIN), a regional, non-hazardous solid waste services
company, today reported preliminary financial results for the first quarter
ended, March 31, 2006.
For the quarter ended March 31, 2006, revenue increased 16.0% to $79.2
million, compared to $68.3 million for the quarter ended March 31, 2005.
Operating income for the first quarter 2006 increased 13.4% to $7.8
million, compared to $6.9 million for the same period in 2005.
Income from continuing operations for the first quarter 2006 was $3.4
million, or $0.24 per diluted share, a 22.7% increase from income from
continuing operations of $2.7 million, or $0.20 per diluted share, for the
first quarter of 2005. Income from discontinued operations (net of income
taxes) was $19,000 in the first quarter 2006, compared to income of $25,000
in the first quarter of 2005.
Jim W. Perry, President and CEO of the Company, stated, "We are pleased
with our overall performance for the quarter. Revenues increased 16%
primarily as a result of our strategic acquisitions and the improving
pricing environment, which enabled us to cover the higher costs incurred in
service delivery. These factors, coupled with increased waste
internalization and improved operating efficiencies, contributed to the
improvement in gross margin versus the prior year, which helped offset the
significant costs we have experienced related to Sarbanes-Oxley
implementation."
All periods have been restated to present the results of certain
discontinued operations in the Atlanta area market, which were sold in
2005, and the Old Kings Road construction and demolition landfill operation
in Jacksonville, Florida, which was sold effective April 1, 2006. The March
31, 2006 balance sheet reflects our preliminary determination of the assets
and liabilities associated with the Old Kings Road operations identified as
held- for-sale as of that date.
The Company will host a conference call to discuss its first quarter
results on May 3, 2006 at 2:00 PM (Eastern Time). The call number is (800)
811-0667 and the confirmation number is 9481952. 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 17, 2006 and may be accessed by calling (888) 203-1112 and
using confirmation number 9481952.
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 and Georgia.
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, managing growth, economic trends,
weather 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
March 31,
2005 2006
Revenues:
Service revenues $68,139 $79,039
Equipment sales 154 188
Total revenues 68,293 79,227
Operating cost and expenses:
Operating (exclusive of depreciation
and amortization shown below) 45,340 51,654
Cost of equipment sales 106 129
Selling, general and administrative 9,086 11,675
Depreciation and amortization 6,810 8,049
Gain on sale of property and
equipment and other assets (25) (50)
Impairment of property and
equipment and other assets 126 -
Total operating costs and expenses 61,443 71,457
Operating income 6,850 7,770
Interest expense 2,342 2,548
Interest income (12) (46)
Other (21) (88)
Total other expense, net 2,309 2,414
Income from continuing operations
before income taxes 4,541 5,356
Income tax expense 1,794 1,985
Income from continuing operations 2,747 3,371
Discontinued operations:
Income from discontinued
operations, net of income taxes 25 19
Net income $2,772 $3,390
Earnings per share:
Basic:
Income from continuing operations $0.20 $0.25
Income from discontinued operations - -
Net income $0.20 $0.25
Diluted:
Income from continuing operations $0.20 $0.24
Income from discontinued operations - -
Net income $0.20 $0.24
Weighted-Average Number Of Shares
Outstanding:
Basic 13,538 13,761
Diluted 13,774 13,911
WASTE INDUSTRIES USA, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In Thousands)
December 31, March 31,
2005 2006
ASSETS (unaudited)
Current assets:
Cash and cash equivalents $1,575 $65
Receivables, net 36,193 33,560
Assets of discontinued operations - 778
Other 4,120 7,405
Total current assets 41,888 41,808
Property and equipment, net 216,390 211,052
Intangible assets, net 105,925 103,596
Assets of discontinued operations - 12,292
Other noncurrent assets 3,952 3,144
Total assets $368,155 $371,892
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Current maturities of
long-term debt 10,733 10,733
Accounts payable - trade 16,579 13,967
Other accrued liabilities
and deferred revenues 29,223 32,380
Total current liabilities 56,535 57,080
Long-term debt, net of
current maturities 155,212 154,641
Liabilities of discontinued
operations - 528
Other liabilities 26,909 27,167
Total liabilities 238,656 239,416
Shareholders' equity: 129,499 132,476
Total liabilities and
shareholders' equity $368,155 $371,892
WASTE INDUSTRIES USA, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands)
(Unaudited)
Three Months Ended
March 31,
2005 2006
Operating Activities:
Net income $2,772 $3,390
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation and amortization 7,078 8,187
Landfill accretion expense 106 416
Amortization of debt issuance costs 181 204
Impairment of property and
equipment and other assets 126 -
Gain on sale of property and
equipment and other assets (25) (50)
Stock compensation expense 14 95
Provision for deferred income taxes 829 25
Change in fair value of commodity hedges - 696
Provision for doubtful accounts 595 574
Changes in operating assets and liabilities,
net of effects from acquisition and
disposition of related businesses (1,027) (2,220)
Net cash provided by
operating activities 10,649 11,317
Investing Activities:
Acquisitions of related business,
net of cash acquired (2,510) (2,397)
Settlement of acquisition liabilities (298) (198)
Proceeds from sale of property and
equipment and other assets 392 252
Purchases of property and equipment (6,782) (9,797)
Other 1,224 (54)
Net cash used in investing activities (7,974) (12,194)
Financing Activities:
Proceeds from issuance of long-term debt 5,000 10,000
Principal payments of long-term debt (10,572) (10,571)
Principal payments of capital lease
obligations (56) (328)
Financing costs - (498)
Excess tax benefit from option exercises - 43
Net proceeds from exercise of stock options 1,448 721
Net cash used in financing activities (4,180) (633)
Decrease in cash and cash equivalents (1,505) (1,510)
Cash and cash equivalents,
beginning of period 2,445 1,575
Cash and cash equivalents, end of period $940 $65
Supplemental disclosures of cash flow
information:
Cash paid for interest $2,147 $2,648
Cash paid for taxes $1,940 $4,234
EARNINGS RELEASE - SUPPLEMENTAL DATA (dollars in thousands)
QUARTER ENDED
REVENUE MARGINS 3/31/05 3/31/06
Operating expenses including cost of
equipment sales 66.5% 65.4%
S G & A 13.3% 14.7%
Depreciation and amortization 10.0% 10.2%
Interest expense, (net) 3.4% 3.2%
Income from continuing operations (pre-tax) 6.6% 6.8%
Income tax expense 2.6% 2.5%
Income from continuing operations 4.0% 4.3%
OPERATING INCOME BEFORE DEPRECIATION,
AMORTIZATION AND ACCRETION*
Operating income $6,850 $7,770
Accretion 106 416
Depreciation and amortization 6,810 8,049
Operating income before depreciation,
amortization and accretion $13,766 $16,235
CAPITAL EXPENDITURES DETAIL
Collection & Transportation $5,100 $5,700
Landfill Development 1,682 4,097
Total capital expenditures $6,782 $9,797
FREE CASH FLOW RECONCILIATION *
Net cash provided by operating activities $10,649 $11,317
Less: Capital expenditures (6,782) (9,797)
Plus: Proceeds from disposal of assets 392 252
Free cash flow $4,259 $1,772
SERVICE REVENUE MIX
Collection:
Industrial $19,295 $22,136
Commercial 19,118 22,290
Residential 15,141 18,519
Disposal and transfer 9,689 11,042
Recycling service 1,167 1,245
Recycled commodity sales 1,160 307
Other 2,569 3,500
Total Service Revenue $68,139 $79,039
DEBT TO TOTAL CAPITAL 12/31/05 3/31/06
(includes capital leases) 56.3% 55.6%
TOTAL LIABILITIES TO EQUITY 1.8 1.8
DAYS SALES OUTSTANDING 34 31
SERVICE REVENUE GROWTH
Price 4.6%
Volume 0.3%
Energy surcharge 1.9%
Total internal growth 6.8%
Recycling commodities -1.4%
Acquisitions 10.6%
Total service revenue growth 16.0%
* Operating income before depreciation, amortization and accretion 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 property and equipment and
other assets. Operating income before depreciation, amortization and
accretion 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, amortization
and accretion 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, amortization and
accretion 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
http://www.prnewswire.com/comp/120685.html /
CONTACT:
Carol Dalton of Waste Industries USA, Inc.,
+1-919-325-3000
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