RALEIGH, N.C., Oct. 19 /PRNewswire-FirstCall/ -- Waste Industries USA,
Inc. (Nasdaq: WWIN), a regional, non-hazardous solid waste services company,
today reported unaudited financial results for the third quarter ended
September 30, 2004.
For the quarter ended September 30, 2004, revenue increased 6.2% to $75.2
million, compared to $70.8 million for the quarter ended September 30, 2003.
Operating income for the third quarter 2004 increased 6.2% to $7.6 million,
compared to operating income of $7.1 million in the third quarter of 2003.
Net income for the third quarter 2004 was $3.4 million, or $0.25 per diluted
share, a 10.7% increase over net income of $3.1 million or $0.23 per share for
the third quarter 2003.
For the nine months ended September 30, 2004, revenue increased 9.7% to
$218.9 million compared to $199.5 million, for the same period in 2003.
Operating income increased 11.0% to $21.6 million, compared to $19.5 million
for the nine months ended September 30, 2003. Net income for the nine months
ended September 30, 2004 was $9.3 million, or $0.68 per diluted share, a 16.3%
increase over net income of $8.0 million, or $0.59 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, "While we were pleased with the overall results
for the third quarter, our operating margins remained under pressure due to
continued increases in fuel prices and to an unusually wet quarter which
resulted in higher disposal costs."
The Company will host a conference call to discuss its third quarter
results on Wednesday, October 20, 2004 at 2:00 PM (Eastern Time). The call
number is (888) 515-2781 and the confirmation number is 862019. 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 November 3, 2004 at (888) 203-1112 with a confirmation number of
862019.
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 may contain 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 Nine Months Ended
September 30, September 30,
2003 2004 2003 2004
Revenues:
Service $70,574 $74,975 $198,559 $218,205
Equipment 227 246 960 646
Total revenues 70,801 75,221 199,519 218,851
Operating cost and expenses:
Operations 46,650 51,358 129,071 147,078
Equipment sales 109 138 574 377
Selling, general and
administrative 9,476 9,174 27,544 27,841
Depreciation and
amortization 7,891 7,047 23,099 22,030
Loss (gain) on sale of
property and equipment 145 (122) 321 (372)
(Gain) loss on sale of
collection and hauling
operations (620) 59 (620) 59
Impairment of fixed assets 23 1 23 189
Total operating costs and
expenses 63,674 67,655 180,012 197,202
Operating income 7,127 7,566 19,507 21,649
Interest expense 2,361 2,367 7,168 7,313
Interest income (54) (32) (175) (82)
Other income (21) (95) (57) (176)
Total other expense
(income) net 2,286 2,240 6,936 7,055
Income before income taxes and
cumulative effect of a
change in accounting principle 4,841 5,326 12,571 14,594
Income tax expense 1,767 1,924 4,589 5,307
Income before cumulative effect
of a change in accounting
principle 3,074 3,402 7,982 9,287
Cumulative effect of a change
in accounting principle
net of tax benefit of $614 -- -- (1,067) --
Net income $3,074 $3,402 $6,915 $9,287
Earnings per share:
Basic:
Before cumulative effect of a
change in accounting
principle $0.23 $0.25 $0.59 $0.69
Cumulative effect of a change
in accounting principle, net
of tax -- -- (0.08) --
Net income $0.23 $0.25 $0.51 $0.69
Diluted:
Before cumulative effect of a
change in accounting
principle $0.23 $0.25 $0.59 $0.68
Cumulative effect of a change
in accounting principle, net
of tax -- -- (0.08) --
Net income $0.23 $0.25 $0.51 $0.68
Weighted-average number of
shares outstanding:
Basic 13,442 13,509 13,429 13,502
Diluted 13,540 13,678 13,485 13,673
WASTE INDUSTRIES USA, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In Thousands, Except Share Data)
(Unaudited)
December 31, September 30,
2003 2004
ASSETS
Current assets:
Cash and cash equivalents $4,127 $3,832
Accounts receivable - trade,
less allowance for
uncollectible accounts
(2003 - $2,608; 2004 - $2,684) 31,235 34,564
Accounts receivable - other 1,182 618
Inventories 1,427 1,686
Prepaid expenses and other
current assets 2,438 2,930
Deferred income taxes 1,350 955
Total current assets 41,759 44,585
Property and equipment, net 191,308 189,141
Intangible assets, net 90,122 89,651
Restricted cash - bonds 822 593
Deferred financing costs 2,834 2,315
Derivative assets -- 360
Other noncurrent assets 3,683 5,022
Total assets $330,528 $331,667
LIABILITIES AND SHAREHOLDERS'
EQUITY
Current liabilities:
Current maturities of long-
term debt $10,723 $10,733
Current maturities of capital
lease obligations 160 --
Accounts payable - trade 13,299 11,629
Income taxes payable 841 2,149
Accrued expenses and other
liabilities 10,643 11,915
Acquisition liabilities 1,949 216
Closure/post-closure
liabilities 816 3,177
Derivative liabilities 1,212 133
Deferred revenue 2,421 5,739
Total current liabilities 42,064 45,691
Long-term debt, net of current
maturities 157,657 148,930
Deferred income taxes 18,240 18,374
Closure/post-closure liabilities 5,348 2,198
Derivative liabilities 260 254
Commitments and contingencies -- --
Shareholders' equity:
Common stock, no par value,
shares authorized - 80,000,000
shares issued and outstanding:
2003 - 13,492,402; 2004
- 13,510,835 39,139 39,271
Paid-in capital 7,342 7,392
Retained earnings 61,369 69,576
Accumulated other comprehensive
(loss) gain (891) (19)
Total shareholders' equity 106,959 116,220
Total liabilities and
shareholders' equity $330,528 $331,667
WASTE INDUSTRIES USA, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands)
(Unaudited)
Nine Months Ended
September 30,
2003 2004
Operating Activities:
Net income $6,915 $9,287
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation and amortization 23,099 22,029
Impairment of fixed assets 23 190
Loss (gain) on sale of property
and equipment 321 (372)
Cumulative effect of accounting
change and accounting principle 1,067 --
(Gain) loss on sale of
collection and hauling
operations (620) 59
Stock compensation expense 18 21
Benefit for deferred income
taxes (864) --
Changes in assets and liabilities,
net of effects
from acquisition and disposition
of related businesses (1,913) (1,037)
Net cash provided by operating
activities 28,046 30,177
Investing Activities:
Acquisitions of related business,
net of cash acquired (38,410) (888)
Acquisition liabilities 1,784 (843)
Proceeds from sale of property and
equipment 2,088 1,550
Purchases of property and equipment (23,156) (20,440)
Proceeds from sale of collection
and hauling operations 15,693 --
Net cash used in investing
activities (42,001) (20,621)
Financing Activities:
Proceeds from issuance of long term
debt 34,750 15,000
Principal payments of long-term
debt (22,005) (23,718)
Principal payments of capital lease
obligations (349) (160)
Financing costs -- (3)
Dividends paid -- (1,080)
Net proceeds from exercise of stock
options 34 110
Net cash provided by (used in)
financing activities 12,430 (9,851)
Decrease in cash and cash
equivalents (1,525) (295)
Cash and cash equivalents,
beginning of period 1,734 4,127
Cash and cash equivalents, end of
period $209 $3,832
Supplemental disclosures of cash flow
information:
Cash paid for interest $7,021 $6,761
Cash paid for income taxes $962 $3,984
EARNINGS RELEASE - SUPPLEMENTAL DATA (dollars in thousands)
REVENUE MARGINS 3 Q 03 3 Q 04
Cost of operations 66.0% 68.5%
S G & A 13.4% 12.2%
Depreciation and amortization 11.1% 9.4%
Interest expense, (net) 3.3% 3.1%
Income before income tax 6.8% 7.1%
Income tax expense 2.5% 2.6%
Net income before cumulative effect 4.3% 4.5%
OPERATING INCOME BEFORE DEPRECIATION AND AMORTIZATION
Operating income $7,127 $7,566
Depreciation 5,955 5,930
Amortization 1,936 1,117
Operating income before depreciation
and amortization $15,018 $14,613
CAPITAL EXPENDITURES DETAIL YTD 03 YTD 04
Collection & transportation $12,743 $18,577
Landfill development 10,413 1,863
Total capital expenditures $23,156 $20,440
FREE CASH FLOW RECONCILIATION
Net cash provided by operating
activities $28,046 $30,177
Less: Capital expenditures (23,156) (20,440)
Plus: Proceeds from disposal
of assets 2,088 1,550
Free cash flow $6,978 $11,287
12/31/03 9/30/04
TOTAL DEBT & CAPITAL LEASES $168,540 $159,663
DEBT TO TOTAL CAPITAL 61.2% 57.9%
TOTAL LIABILITIES TO 2.1 1.9
EQUITY
DAYS SALES OUTSTANDING 38 39
SERVICE REVENUE MIX 3 Q 04
Collection 79.3%
Disposal and transfer 15.9%
Recycling and other 4.8%
100.0%
SERVICE REVENUE GROWTH 3 Q 04
Price 0.3%
Volume 3.6%
Energy surcharge -0.1%
Total internal growth 3.8%
Recycling commodities 0.5%
Acquisitions 1.9%
Total service revenue growth 6.2%
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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