RALEIGH, N.C., July 29 /PRNewswire-FirstCall/ --
Waste Industries USA, Inc. (Nasdaq: WWIN), a regional, non-hazardous solid
waste services company, today reported financial results for the second
quarter ended June 30, 2003.
For the quarter ended June 30, 2003, the Company reported revenue of
$65.8 million compared to $63.6 million for the quarter ended June 30, 2002.
Operating income was $6.5 million compared to $7.0 million for the comparable
period last year. Net income was $2.7 million, or $0.20 per share for both
quarters ended June 30, 2003 and 2002, respectively.
For the six months ended June 30, 2003, the Company reported revenue of
$128.7 million compared to $123.6 million for the six months ended
June 30, 2002. Operating income was $12.4 million compared to $13.4 million
for the comparable period last year. Income before a cumulative effect of a
change in accounting principle for SFAS 143 was $4.9 million, or $0.36 per
share and $5.0 million, or $0.38 per share for the six months ended June 30,
2003 and 2002, respectively. Net income was $3.8 million, or $0.28 per share
for the six months ended June 30, 2003 (including the $0.08 per share dilutive
impact for the cumulative effect of the adoption of SFAS 143) compared to
$5.0 million, or $0.38 per share for the six months ended June 30, 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"), and is presented as a non-cash charge in the statement of cash
flows.
Commenting on the Company's performance, Jim W. Perry, President and CEO
of Waste Industries USA said, "We are pleased with our revenue growth and the
strong performance of our landfills in the second quarter. On the other hand,
our hauling operations continue to be adversely impacted by a sluggish economy
and competitive pressures on pricing."
The Company will host a conference call to discuss its second quarter
results on Wednesday, July 30, 2003 at 2:00 PM (EST). The call number is
(800) 967-7135 and the confirmation number is 401133. 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.
The tables attached to this press release contain 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. Our definitions of EBITDA and
free cash flow might not be comparable to similarly titled measures reported
by other companies. 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
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 Six Months Ended
June 30, June 30,
2002 2003 2002 2003
Revenues:
Service $63,347 $65,499 $122,962 $127,985
Equipment 293 286 655 733
Total revenues 63,640 65,785 123,617 128,718
Operating costs and expenses:
Operations 41,029 42,210 79,105 82,422
Equipment sales 88 358 313 640
Selling, general and administrative 8,604 9,000 17,096 18,068
Depreciation and amortization 6,953 7,707 13,693 15,208
Total operating costs
and expenses 56,674 59,275 110,207 116,338
Operating income 6,966 6,510 13,410 12,380
Interest expense (net) 2,818 2,228 5,560 4,686
Other expense (income) (97) (21) (52) (36)
Total other expense 2,721 2,207 5,508 4,650
Income before income taxes
and cumulative effect of a
change in accounting principle 4,245 4,303 7,902 7,730
Income tax expense 1,549 1,582 2,884 2,822
Income before cumulative
effect of a change in
accounting principle 2,696 2,721 5,018 4,908
Cumulative effect of a
change in accounting
principle, net of tax
expense of $614 - - - (1,067)
Net Income $2,696 $2,721 $5,018 $3,841
Earnings per share:
Basic:
Before cumulative effect
of a change in
accounting principle $0.20 $0.20 $0.38 $0.37
Cumulative effect of a
change in accounting
principle, net of tax - - - (0.08)
Net Income $0.20 $0.20 $0.38 $0.29
Diluted:
Before cumulative effect
of a change in
accounting principle $0.20 $0.20 $0.38 $0.36
Cumulative effect of a
change in accounting
principle, net of tax - - - (0.08)
Net Income $0.20 $0.20 $0.38 $0.28
Basic 13,335 13,440 13,335 13,423
Diluted 13,354 13,465 13,350 13,447
EBITDA $14,016 $14,238 $27,155 $27,624
WASTE INDUSTRIES USA, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In Thousands, Except Share Data)
(Unaudited)
December 31, June 30,
2002 2003
ASSETS
Current assets:
Cash and cash equivalents $1,734 $ -
Accounts receivable - trade, less
allowance for uncollectible accounts
(2002 - $2,237; 2003 - $2,449) 28,200 29,825
Accounts receivable - other 1,395 584
Income taxes receivable 919 -
Inventories 1,552 1,427
Prepaid expenses and other current
assets 3,860 5,642
Deferred income taxes 759 753
Total current assets 38,419 38,231
Property and equipment, net 188,897 188,721
Intangible assets, net 68,338 72,736
Other noncurrent assets 2,854 3,389
Total assets $298,508 $303,077
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Current maturities of long-term debt $11,710 $14,014
Current maturities of capital lease
obligations 599 356
Accounts payable - trade 10,501 10,530
Income taxes payable - 700
Accrued expenses and other liabilities 9,822 11,607
Deferred revenue 1,997 2,710
Total current liabilities 34,629 39,917
Long-term debt, net of current
maturities 140,875 135,764
Deferred income taxes 18,941 19,355
Closure/postclosure liabilities 4,874 4,546
Interest rate swap 2,219 1,988
Shareholders' equity:
Common stock, no par value, shares
authorized - 80,000,000 shares issued
and outstanding: 2002 - 13,338,005;
2003 -13,440,501 38,116 38,665
Paid-in capital 7,245 7,245
Retained earnings 54,623 58,464
Accumulated other comprehensive loss (1,366) (1,219)
Shareholders' loans and other
receivables (1,648) (1,648)
Total shareholders' equity 96,970 101,507
Total liabilities and shareholders'
equity $298,508 $303,077
WASTE INDUSTRIES USA, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands)
(Unaudited)
Six Months Ended
June 30,
2002 2003
Operating Activities:
Net income $5,018 $3,841
Adjustments to reconcile
net income to net cash provided by
operating activities:
Depreciation and amortization 13,693 15,208
(Gain)/Loss on sale of property and
equipment (118) 177
Cumulative effect of accounting change - 1,067
Provision for deferred income taxes 22 336
Changes in assets and liabilities, net of
effects from acquistion and disposition
of related businesses (1,076) (794)
Net cash provided by operating
activities 17,539 19,835
Investing Activities:
Acquisitions of related business, net
of cash acquired (3,349) (4,988)
Proceeds from sale of property and
equipment 421 1,435
Purchases of property and equipment (10,495) (14,984)
Net cash used in investing activities (13,423) (18,537)
Financing Activities:
Proceeds from issuance of long term debt 17 9,141
Principal payments of long-term debt (4,712) (11,947)
Principal payments of
capital lease obligations (378) (243)
Decrease(Increase) shareholder loans and
receivables, net (305) -
Net proceeds from common stock issuance 11 12
Net proceeds from exercised options - 5
Net cash provided by financing
activities (5,367) (3,032)
Increase (decrease) in cash and cash
equivalents (1,251) (1,734)
Cash and cash equivalents, beginning
of period 1,887 1,734
Cash and cash equivalents, end of
period $636 -
Supplemental disclosures of cash flow
information:
Cash paid for interest $4,282 $5,025
Cash paid for taxes $2,925 $297
EARNINGS RELEASE - SUPPLEMENTAL DATA AS OF
12/31/02 6/30/03
TOTAL REVENUE MARGINS 2Q 02 2Q 03 TOTAL DEBT & $153,184 $150,134
Total Cost of operations 64.6% 64.7% CAPITAL LEASES
S G & A 13.5% 13.7%
Depreciation and
amortization 10.9% 11.7% TOTAL EQUITY $96,970 $101,507
Interest expense
(net) 4.4% 3.4%
Income beforeincome taxes
and cumulative effect of a DEBT TO TOTAL
change in accounting CAPITAL 61.2% 59.7%
principle 6.7% 6.5%
Income tax expense 2.4% 2.4% TOTAL LIABILITIES 2.08 1.99
Net income 4.2% 4.1% TO EQUITY
EBITDA 22.0% 21.6%
WORKING CAPITAL $3,790 $(1,686)
EBITDA CALCULATION 2Q 02 2Q 03
YTD YTD
Net income $5,018 $3,841 DAYS SALES 37.3 36.9
OUTSTANDING
Add back:
Income tax expense 2,884 2,822 CASH $1,734 $ -
Interest expense (net) 5,560 4,686
Depreciation and
amortization 13,693 15,208 SERVICE REVENUE
GROWTH 2 Q 03
Cumulative effect of
a change in Price 1.5%
accounting principle - 1,067 Volume -0.6%
$27,155 $27,624 Total Internal Growth 0.9%
Commodities 0.2%
RECONCILIATION OF EBITDA Acquisitions 2.3%
EBITDA $27,155 $27,624 Total Service Revenue
Growth 3.4%
Income tax expense (2,884) (2,822)
Interest expense
(net) (5,560) (4,686)SERVICE REVENUE MIX 2 Q 03
Adjustments to reconcile
net income Collection 78.9%
to net cash provided by
operating activities Disposal and Transfer 15.1%
(other than depreciation
and amortization) Recycling and Other 6.0%
100.0%
(Gain) loss
on sale of PP&E (118) 177
Provision for deferred
income taxes 22 336
Changes in operating assets
and liabilities (1,076) (794)
Net cash provided by
operating activities $17,539 $19,835
FREE CASH FLOW AND RECONCILIATION
OF FREE CASH FLOW TO NET CASH
PROVIDED BY OPERATING AND
INVESTING ACTIVITIES
Net cash provided by
operating activities $17,539 $19,835
Capital Expenditures (10,495)(14,984)
Proceeds from sale of
PP&E 421 1,435
Free cash flow 7,465 6,286
Acquisitions of business (3,349) (4,988)
Net cash provided by
operating and investing
activities $4,116 $1,298
CAPITAL EXPENDITURES
DETAIL 2Q 02 YTD 2Q 03 YTD
Collection &
Transportation $9,193 $8,846
Landfill & Facility
Development 1,302 6,138
Total Capital
Expenditures $10,495 $14,984
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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