RALEIGH, N.C., Aug. 8 /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,
2005.
In the second quarter of 2005, the Company sold certain operations in the
Atlanta, Georgia region that qualified as discontinued operations, impacting
the previously reported 2004 and 2005 results. All periods have been restated
to present the results for these operations as discontinued operations.
For the quarter ended June 30, 2005, revenue increased 5.6% to $77.3
million, compared to $73.2 million for the quarter ended June 30, 2004.
Operating income for the second quarter 2005 decreased 14.4% to $6.1 million,
compared to operating income of $7.1 million in the second quarter of 2004.
Income from continuing operations for the second quarter 2005 was $2.1
million, or $0.15 per diluted share, a 29.2% decrease from income from
continuing operations of $3.0 million, or $0.22 per diluted share, for the
second quarter of 2004. Income from discontinued operations for the second
quarter of 2005 was $0.3 million, or $.02 per diluted share, including the
effect of a $0.4 million gain (shown net of income taxes) from the sale of
operations.
For the six months ended June 30, 2005, revenue increased 3.9% to $146.6
million, compared to $141.1 million for the same period in 2004. Operating
income decreased 4.8% to $13.3 million, compared to $14.0 million for the six
months ended June 30, 2004. Income from continuing operations for the six
months ended June 30, 2005 was $5.1 million, or $0.37 per diluted share, a
12.0% decrease from income from continuing operations of $5.8 million, or
$0.43 per diluted share, for the same six-month period in 2004. Income from
discontinued operations for the six months ended June 30, 2005 was $0.1
million, or $.01 per diluted share, including the effect of a $0.4 million
gain (net of income taxes) from the sale of operations.
Results of operations for the quarter were adversely impacted by the
following:
- Selling, general and administrative costs increased $1.7 million ($0.08
per diluted share, net of tax) due primarily to $1.1 million of higher
outside service professional fees, of which $0.6 million were related
to Sarbanes-Oxley project implementation costs;
- Fuel cost increases in excess of surcharges, up $0.5 million ($.02 per
diluted share, net of tax); and
- Medical self-insurance costs increased 32%, or $0.5 million ($.02 per
diluted share, net of tax) due to a number of larger than usual claims.
Jim W. Perry, President and CEO of the Company, stated, "Strategies to
improve results at our under performing operations and to increase the waste
internalization rate within the Company are showing positive results. At the
same time, the impact of continued high fuel cost, expenses associated with
integrating recently acquired operations and costs related to Sarbanes-Oxley
and other professional fees had an adverse impact on performance for the
quarter and year-to-date."
The Company will host a conference call to discuss its second quarter
results on Tuesday, August 9, 2005 at 2:00 PM (Eastern Time). The call number
is (800) 946-0712 and the confirmation number is 4418759. 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 22, 2005, and may be accessed by calling (888) 203-1112 and
using confirmation number 4418759.
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, 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. The Company's 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 these measures 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 fuel prices,
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,
2004 2005 2004 2005
Revenues:
Service $72,972 $77,102 $140,738 $146,291
Equipment 181 157 400 311
Total revenues 73,153 77,259 141,138 146,602
Operating cost and expenses:
Operations 49,118 52,843 93,613 98,688
Equipment sales 112 95 239 201
Selling, general and
administrative 9,166 10,881 18,500 20,015
Depreciation and
amortization 7,598 7,542 14,892 14,487
Gain on sale of property and
equipment (133) (198) (250) (222)
Impairment of property and
equipment and other assets 188 17 188 143
Total operating costs and
expenses 66,049 71,180 127,182 133,312
Operating income 7,104 6,079 13,956 13,290
Interest expense 2,382 2,619 4,946 4,961
Interest income (28) (21) (50) (32)
Other income (16) (60) (81) (81)
Total other expense
(income) net 2,338 2,538 4,815 4,848
Income from continuing
operations before income taxes 4,766 3,540 9,141 8,442
Income tax expense 1,739 1,399 3,336 3,335
Income from continuing
operations 3,027 2,142 5,805 5,107
Discontinued operations:
Income (loss) from discontinued
operations (net of income
taxes) 33 (110) 80 (304)
Gain on sale of operations (net
of income taxes) - 389 - 389
Net income from
discontinued
operations 33 279 80 85
Net income $3,060 $2,421 $5,885 $5,192
Earnings per share:
Basic:
Income from continuing
operations $0.22 $0.16 $0.43 $0.37
Discontinued operations 0.01 0.02 0.01 0.01
Net income $0.23 $0.18 $0.44 $0.38
Diluted:
Income from continuing
operations $0.22 $0.15 $0.43 $0.37
Discontinued operations - 0.02 - 0.01
Net income $0.22 $0.17 $0.43 $0.38
Weighted-Average Number Of
Shares Outstanding:
Basic 13,502 13,675 13,498 13,606
Diluted 13,667 13,853 13,619 13,798
WASTE INDUSTRIES USA, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In Thousands)
(Unaudited)
December 31, June 30,
2004 2005
ASSETS
Current assets:
Cash and cash equivalents $2,445 $53
Receivables, net 31,602 29,690
Other 7,028 5,740
Total current assets 41,075 35,483
Property and equipment, net 198,551 208,868
Intangible assets, net 92,702 103,857
Other noncurrent assets 4,720 4,306
Total assets $337,048 $352,514
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Current maturities of long-term
debt 10,733 10,733
Accounts payable - trade 14,627 15,496
Other accrued liabilities and
deferred revenues 22,570 25,142
Total current liabilities 47,930 51,371
Long-term debt, net of current
maturities 145,930 151,174
Other liabilities 25,477 25,685
Total liabilities 219,337 228,230
Shareholders' equity: 117,711 124,284
Total liabilities and
shareholders' equity $337,048 $352,514
WASTE INDUSTRIES USA, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands)
(Unaudited)
Six Months Ended
June 30,
2004 2005
Operating Activities:
Net income $5,885 $5,192
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation and amortization 14,983 14,487
Amortization of debt issuance
costs 371 559
Impairment of property and
equipment and other assets 188 143
Gain on sale of property and
equipment (250) (222)
Gain on sale of discontinued
collection and hauling
operations - (389)
Stock compensation expense 13 44
Provision for deferred income
taxes - 1,570
Provision for doubtful accounts 929 1,454
Changes in assets and liabilities,
net of effects from acquisition and
disposition of related businesses 853 (513)
Net cash provided by
operating activities 22,972 22,325
Investing Activities:
Acquisitions of related business,
net of cash acquired (749) (23,279)
Settlement of acquisition
liabilities (136) 92
Proceeds from sale of insurance
policy - 164
Increase in restricted cash - (121)
Proceeds from sale of property and
equipment 1,059 720
Purchases of property and equipment (11,021) (16,031)
Proceeds from sale of discontinued
collection and hauling operations - 7,913
Net cash used in investing
activities (10,847) (30,542)
Financing Activities:
Proceeds from issuance of long-term
debt 9,000 27,962
Principal payments of long-term
debt (21,717) (22,719)
Principal payments of capital lease
obligations (115) (101)
Financing costs (4) (35)
Payment of dividends (1,080) (1,094)
Net proceeds from exercise of stock
options 91 1,812
Net cash provided by (used in)
financing activities (13,825) 5,825
Decrease in cash and cash
equivalents (1,700) (2,392)
Cash and cash equivalents,
beginning of period 4,127 2,445
Cash and cash equivalents, end of
period $2,427 $53
Supplemental disclosures of cash flow
information:
Cash paid for interest $4,557 $4,568
Cash paid for taxes $3,826 $3,348
EARNINGS RELEASE - SUPPLEMENTAL DATA (dollars in thousands)
REVENUE MARGINS 2 Q 04 2 Q 05
Cost of operations 67.3% 68.5%
S G & A 12.5% 14.1%
Depreciation and amortization 10.4% 9.8%
Interest expense, (net) 3.2% 3.4%
Income from continuing operations
(pre-tax) 6.5% 4.6%
Income tax expense 2.4% 1.8%
Income from continuing operations 4.1% 2.8%
OPERATING INCOME BEFORE DEPRECIATION
AND AMORTIZATION
Operating income $7,104 $6,079
Depreciation and amortization 7,598 7,542
Operating income before
depreciation and amortization $14,702 $13,621
CAPITAL EXPENDITURES DETAIL YTD 04 YTD 05
Collection & Transportation $9,996 $11,150
Landfill Development 1,025 4,881
Total capital expenditures $11,021 $16,031
FREE CASH FLOW RECONCILIATION
Net cash provided by operating
activities $22,972 $22,325
Less: Capital expenditures (11,021) (16,031)
Plus: Proceeds from disposal of
assets 1,059 720
Free cash flow $13,010 $7,014
12/31/04 6/30/05
DEBT TO TOTAL CAPITAL 57.2% 56.7%
(includes capital leases)
TOTAL LIABILITIES TO 1.9 1.8
EQUITY
DAYS SALES OUTSTANDING 36 33
SERVICE REVENUE MIX 2 Q0 5
Collection:
Industrial 28.7%
Commercial 27.0%
Residential 20.4%
Disposal and transfer 16.8%
Recycling service 1.7%
Recycled commodity sales 1.5%
Other 3.9%
Total Service Revenue 100.0%
SERVICE REVENUE GROWTH
Price 0.4%
Volume 1.0%
Energy surcharge 0.1%
Total internal growth 1.5%
Recycling commodities -0.3%
Acquisitions 4.4%
Total service revenue growth 5.6%
SOURCE Waste Industries USA, Inc.
 back to top
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
|
