RALEIGH, N.C., July 20 /PRNewswire-FirstCall/ -- Waste Industries USA,
Inc. (Nasdaq: WWIN), a regional, non-hazardous solid waste services company,
today reported unaudited financial results for the second quarter ended June
30, 2004.
For the quarter ended June 30, 2004, revenue increased 13.1% to
$74.4 million, compared to $65.8 million for the quarter ended June 30, 2003.
Operating income for the second quarter 2004 increased 9.9% to $7.2 million,
compared to operating income of $6.5 million in the second quarter of 2003.
Net income for the second quarter 2004 was $3.1 million, or $0.22 per diluted
share, a 12.5% increase over net income of $2.7 million or $0.20 per share for
the second quarter 2003.
For the six months ended June 30, 2004, revenue increased 11.6% to
$143.6 million compared to $128.7 million, for the same period in 2003.
Operating income increased 13.8% to $14.1 million, compared to $12.4 million
for the six months ended June 30, 2003. Net income for the six months ended
June 30, 2004 was $5.9 million, or $0.43 per diluted share, a 19.9% increase
over net income of $4.9 million, or $0.36 per diluted 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, "We are pleased with our strong revenue growth
for the quarter and our performance highlights initiatives taken over the past
year to streamline our operations while pursuing a very selective growth
strategy."
The Company will host a conference call to discuss its second quarter
results on Wednesday, July 21, 2004 at 2:00 PM (ET). The call number is (888)
202-2422 and the confirmation number is 712559. 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
August 4, 2004 at (888) 203-1112 with a confirmation number of 712559.
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,
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 Six Months Ended
June 30, June 30,
2003 2004 2003 2004
Revenues:
Service $65,499 $74,209 $127,985 $143,230
Equipment 286 181 733 400
Total revenues 65,785 74,390 128,718 143,630
Operating cost and expenses:
Operations 42,210 50,169 82,422 95,720
Equipment sales 170 112 463 239
Selling, general and
administrative 9,000 9,254 18,068 18,667
Depreciation and
amortization 7,707 7,644 15,208 14,983
Loss (gain) on sale of
property and equipment 188 (133) 177 (250)
Impairment of fixed assets - 188 - 188
Total operating costs and
expenses 59,275 67,234 116,338 129,547
Operating income 6,510 7,156 12,380 14,083
Interest expense 2,280 2,382 4,807 4,946
Interest income (52) (28) (121) (50)
Other income (21) (16) (36) (81)
Total other expense
(income) net 2,205 2,338 4,650 4,815
Income before income taxes and
cumulative effect of a change
in accounting principle 4,303 4,818 7,730 9,268
Income tax expense 1,582 1,758 2,822 3,383
Income before cumulative effect
of a change in accounting
principle 2,721 3,060 4,908 5,885
Cumulative effect of a change
in accounting principle net of
tax benefit of $614 - - (1,067) -
Net Income $2,721 $3,060 $3,841 $5,885
Earnings per share:
Basic:
Before cumulative effect of a
change in accounting
principle $0.20 $0.23 $0.37 $0.44
Cumulative effect of a change
in accounting principle, net
of tax - - (0.08) -
Net Income $0.20 $0.23 $0.29 $0.44
Diluted:
Before cumulative effect of a
change in accounting
principle $0.20 $0.22 $0.36 $0.43
Cumulative effect of a change
in accounting principle, net
of tax - - (0.08) -
Net Income $0.20 $0.22 $0.28 $0.43
Weighted-Average Number Of
Shares Outstanding:
Basic 13,440 13,502 13,423 13,498
Diluted 13,465 13,667 13,447 13,619
WASTE INDUSTRIES USA, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In Thousands, Except Share Data)
(Unaudited)
December 31, June 30,
2003 2004
ASSETS
Current assets:
Cash and cash equivalents $4,127 $2,427
Accounts receivable -
trade, less allowance for
uncollectible accounts
(2003 - $2,608; 2004 - $2,836) 31,235 29,892
Accounts receivable - other 1,182 1,109
Inventories 1,427 1,626
Prepaid expenses and other
current assets 2,438 3,152
Deferred income taxes 1,350 1,073
Total current assets 41,759 39,279
Property and equipment, net 190,871 187,313
Intangible assets, net 90,122 90,634
Restricted cash - bonds 822 585
Deferred financing costs 2,834 2,503
Derivative assets - 931
Other noncurrent assets 4,120 4,493
Total assets $330,528 $325,738
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Current maturities of
long-term debt $10,723 $10,733
Current maturities of
capital lease obligations 160 45
Accounts payable - trade 13,299 13,893
Income taxes payable 841 372
Accrued expenses and other
liabilities 10,643 12,521
Acquisition liabilities 1,949 1,813
Closure/post-closure
liabilities 816 4,818
Derivative liabilities 1,212 455
Deferred revenue 2,421 2,835
Total current liabilities 42,064 47,485
Long-term debt, net of current
maturities 157,657 144,930
Deferred income taxes 18,240 18,501
Closure/post-closure
liabilities 5,348 1,496
Derivative liabilities 260 475
Commitments and contingencies - -
Shareholders' equity:
Common stock, no par value,
shares authorized -
80,000,000 shares issued and
outstanding: 2003 - 13,492,402;
2004 - 13,507,734 39,139 39,242
Paid-in capital 7,342 7,392
Retained earnings 61,369 66,173
Accumulated other comprehensive
(loss) gain (891) 44
Total shareholders' equity 106,959 112,851
Total liabilities and
shareholders' equity $330,528 $325,738
WASTE INDUSTRIES USA, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands)
(Unaudited)
Six Months Ended
June 30,
2003 2004
Operating Activities:
Net income $3,841 $5,885
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation and amortization 15,208 14,983
Impairment of fixed assets - 188
Loss (gain) on sale of property
and equipment 177 (250)
Cumulative effect of accounting
change and accounting principle 1,067 -
Stock compensation expense 12 63
Provision for deferred income taxes 336 -
Changes in assets and liabilities,
net of effects from acquisition
and disposition of related
businesses (240) 2,103
Net cash provided by operating
activities 20,401 22,972
Investing Activities:
Acquisitions of related business,
net of cash acquired (4,988) (749)
Acquisition liabilities (554) (136)
Proceeds from sale of property and
equipment 1,435 1,059
Purchases of property and equipment (14,984) (11,021)
Net cash used in investing
activities (19,091) (10,847)
Financing Activities:
Proceeds from issuance of long term
debt 9,141 9,000
Principal payments of long-term
debt (11,947) (21,717)
Principal payments of capital lease
obligations (243) (115)
Financing costs - (3)
Dividends paid - (1,080)
Net proceeds from exercise of stock
options 5 90
Net cash used in financing
activities (3,044) (13,825)
Decrease in cash and cash
equivalents (1,734) (1,699)
Cash and cash equivalents,
beginning of period 1,734 4,127
Cash and cash equivalents, end of
period $- $2,427
Supplemental disclosures of cash flow
information:
Cash paid for interest $5,025 $4,557
Cash paid for income taxes $297 $3,826
EARNINGS RELEASE - SUPPLEMENTAL DATA
(dollars in thousands)
REVENUE MARGINS 2 Q 03 2 Q 04
Cost of operations 64.4% 67.6%
S G & A 13.7% 12.4%
Depreciation and amortization 11.7% 10.3%
Interest expense, (net) 3.4% 3.2%
Income before income tax 6.5% 6.5%
Income tax expense 2.4% 2.4%
Net income before cumulative effect 4.1% 4.1%
OPERATING INCOME BEFORE DEPRECIATION
AND AMORTIZATION
Operating income $6,510 $7,156
Depreciation and amortization 7,707 7,644
Operating income before
depreciation and amortization $14,217 $14,800
CAPITAL EXPENDITURES DETAIL YTD 03 YTD 04
Collection & Transportation $8,846 $9,996
Landfill Development 6,138 1,025
Total capital expenditures $14,984 $11,021
FREE CASH FLOW RECONCILIATION
Net cash provided by operating
activities $20,401 $22,972
Less: Capital expenditures (14,984) (11,021)
Plus: Proceeds from disposal of assets 1,435 1,059
Free cash flow $6,852 $13,010
12/31/03 6/30/04
TOTAL DEBT & CAPITAL LEASES $168,540 $155,708
DEBT TO TOTAL CAPITAL 61.2% 58.0%
TOTAL LIABILITIES TO EQUITY 2.1 1.9
DAYS SALES OUTSTANDING 38 37
SERVICE REVENUE MIX
Collection 79.1%
Disposal and Transfer 16.2%
Recycling and Other 4.7%
100.0%
SERVICE REVENUE GROWTH
Price 1.1%
Volume 6.0%
Energy surcharge 0.3%
Total internal growth 7.4%
Recycling commodities 0.2%
Acquisitions 5.7%
Total service revenue growth 13.3%
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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