RALEIGH, N.C., Oct. 28 /PRNewswire-FirstCall/ -- Waste Industries USA,
Inc. (Nasdaq: WWIN), a regional, non-hazardous solid waste services company,
today reported financial results for the third quarter ended September 30,
2003.
For the quarter ended September 30, 2003, the Company reported revenue of
$70.8 million compared to $65.0 million for the quarter ended September 30,
2002. Operating income was $7.1 million compared to $7.8 million for the
comparable period last year. Net income was $3.1 million, or $0.23 per share,
compared to $3.2 million, or $0.24 per share for both quarters ended September
30, 2003 and 2002, respectively.
For the nine months ended September 30, 2003, the Company reported revenue
of $199.5 million compared to $188.6 million for the nine months ended
September 30, 2002. Operating income was $19.5 million compared to
$21.2 million for the comparable period last year. Income before a cumulative
effect of a change in accounting principle for SFAS 143 was $8.0 million, or
$0.59 per share and $8.2 million, or $0.61 per share for the nine months ended
September 30, 2003 and 2002, respectively. Net income was $6.9 million, or
$0.51 per share for the nine months ended September 30, 2003 (including the
$0.08 per share dilutive impact for the cumulative effect of the adoption of
SFAS 143) compared to $8.2 million, or $0.61 per share for the nine months
ended September 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 balanced revenue growth
and are confident that current initiatives will improve our operating margin.
We successfully dealt with several major events in this quarter which included
completing our largest acquisition to date, the completion of amending our
revolving credit facility, the issuance of a revenue bond for landfill
construction and dealing with the impact of Hurricane Isabel on eight of our
operations in eastern North Carolina and Virginia."
The Company will host a conference call to discuss its second quarter
results on Wednesday, October 29, 2003 at 2:00 PM (EST). The call number is
(800) 946-0786 and the confirmation number is 610835. 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, 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 less capital expenditures and plus proceeds
from the sale of fixed assets. 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. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands, Except Per Share Data)
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2002 2003 2002 2003
Revenues:
Service $64,656 $70,574 $187,618 $198,559
Equipment 371 227 1,026 960
Total revenues 65,027 70,801 188,644 199,519
Operating cost and expenses:
Operations 41,549 46,650 120,654 129,071
Equipment sales 162 254 475 895
Selling, general and
administrative 8,512 9,476 25,608 27,544
Depreciation and amortization 7,031 7,891 20,725 23,099
Gain on sale of collection
and hauling operations -- (620) -- (620)
Impairment of fixed assets -- 23 -- 23
Total operating costs and
expenses 57,254 63,674 167,462 180,012
Operating income 7,773 7,127 21,182 19,507
Interest expense (net) 2,783 2,307 8,344 6,993
Other income (12) (21) (65) (57)
Total other expense
(income) net 2,771 2,286 8,279 6,936
Income before income taxes and
cumulative effect of a change
in accounting principle 5,002 4,841 12,903 12,571
Income tax expense 1,826 1,767 4,710 4,589
Income before cumulative effect
of a change in accounting
principle 3,176 3,074 8,193 7,982
Cumulative effect of a change
in accounting principle -- -- -- (1,067)
net of tax benefit of $614
Net Income $3,176 $3,074 $8,193 $6,915
Earnings per share
Basic and Diluted:
Before cumulative effect of a
change in accounting principle $0.24 $0.23 $0.61 $0.59
Cumulative effect of a change
in accounting principle, net
of tax -- -- -- (0.08)
Net Income $0.24 $0.23 $0.61 $0.51
Weighted-Average Number Of
Shares Outstanding:
Basic 13,336 13,442 13,335 13,429
Diluted 13,347 13,540 13,348 13,485
EBITDA $14,816 $15,039 $41,972 $42,663
WASTE INDUSTRIES USA, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In Thousands, Except Share Data)
(Unaudited)
December 31, September 30,
2002 2003
ASSETS
Current assets:
Cash and cash equivalents $1,734 $209
Accounts receivable - trade,
less allowance for uncollectible
accounts (2002 - $2,237; 2003 - $2,337) 28,200 32,151
Accounts receivable - other 1,395 1,175
Income taxes receivable 919 --
Inventories 1,552 1,396
Prepaid expenses and other current assets 3,860 4,481
Deferred income taxes 759 753
Total current assets 38,419 40,165
Property and equipment, net 188,897 190,117
Intangible assets, net 68,338 91,056
Restricted cash - bonds -- 3,426
Deferred financing costs 1,662 3,008
Other noncurrent assets 1,192 2,163
Total assets $298,508 $329,935
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Current maturities of long-term debt $11,710 $11,098
Current maturities of capital lease
obligations 599 250
Accounts payable - trade 10,501 13,294
Income taxes payable -- 3,002
Accrued expenses and other liabilities 10,369 11,271
Acquisition liabilities 305 2,089
Closure/postclosure liabilities 410 608
Deferred revenue 1,997 1,544
Total current liabilities 35,891 43,156
Long-term debt, net of current maturities 140,875 157,657
Deferred income taxes 18,941 18,180
Closure/postclosure liabilities 3,612 4,363
Derivative liabilities 2,219 1,919
Shareholders' equity:
Common stock, no par value, shares authorized
-80,000,000 shares issued and outstanding:
2002 - 13,338,005; 2003 - 13,445,784 38,116 38,700
Paid-in capital 7,245 7,245
Retained earnings 54,623 61,538
Accumulated other comprehensive loss (1,366) (1,175)
Shareholders' loans and other receivables (1,648) (1,648)
Total shareholders' equity 96,970 104,660
Total liabilities and shareholders' equity $298,508 $329,935
WASTE INDUSTRIES USA, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands)
(Unaudited)
Nine Months Ended
September 30,
2002 2003
Operating Activities:
Net income $8,193 $6,915
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization 20,725 23,099
Cumulative asset impairment -- 23
(Gain)/loss on sale of property and equipment (240) 321
Cumulative effect of accounting change -- 067
Gain of sale of collection and hauling
operations -- 620)
Benefit for deferred income taxes (192) (864)
Changes in assets and liabilities,
net of effects from acquisition and disposition
of related businesses (233) (1,926)
Net cash provided by operating activities 28,253 28,015
Investing Activities:
Acquisitions of related business,
net of cash acquired (3,349) (38,410)
Acquisition liabilities (150) 1,784
Proceeds from sale of property and equipment 994 2,088
Purchases of property and equipment (13,541) (23,143)
Proceeds from collection and hauling operations -- 15,693
Net cash used in investing activities (16,046) (41,988)
Financing Activities:
Proceeds from issuance of long term debt 3,799 34,750
Principal payments of long-term debt (12,154) (22,005)
Principal payments of capital lease obligations (552) (349)
Increase in shareholder loans and receivables,
net (266) --
Net proceeds from common stock issuance 18 18
Net proceeds from exercised options -- 34
Net cash (used in) provided by
financing activities (9,155) 12,448
Increase (decrease) in cash and cash equivalents 3,052 (1,525)
Cash and cash equivalents, beginning of period 1,887 1,734
Cash and cash equivalents, end of period $4,939 $209
Non-Cash Investing Activity -
Restricted Cash - Bonds -- 3,426
Supplemental disclosures of cash flow
information:
Cash paid for interest $5,216 $7,021
Cash paid for taxes $3,017 $962
EARNINGS RELEASE - SUPPLEMENTAL DATA
REVENUE MARGINS 3Q 02 3Q 03
Cost of Operations 63.9% 65.9%
S G & A 13.1% 13.4%
Depreciation and Amortization 10.8% 11.1%
Interest Expense, (Net) 4.3% 3.3%
Income Before Income Tax 7.7% 6.8%
Income Tax Expense 2.8% 2.5%
Historical Net Income 4.9% 4.3%
EBITDA 22.8% 21.2%
EBITDA CALCULATION 3Q 02 YTD 3Q 03 YTD
Net Income $8,193 $6,915
Add back:
Income tax expense 4,710 4,589
Interest expense (net) 8,344 6,993
Depreciation and amortization 20,725 23,099
Cumulative effect of a change in
accounting principle -- 1,067
$41,972 $42,663
RECONCILIATION OF EBITDA
EBITDA $41,972 $42,663
Income tax expense (4,710) (4,589)
Interest expense (net) (8,344) (6,993)
Adjustments to reconcile net income
to net coash provided by operating
activities (other than depreciation
and amortization)
(Gain) loss on sale of PP&E (240) 321
Cumulative asset impairment -- 23
Gain on sale of operations -- (620)
Benefit for deferred income taxes (192) (864)
Changes in operating assets and
liabilities (233) (1,926)
Net cash provided by operating
activities $28,253 $28,015
FREE CASH FLOW AND RECONCILIATION OF FREE CASH FLOW TO NET CASH PROVIDED
BY OPERATING AND INVESTING ACTIVITIES
Net cash provided by operating activities $28,253 $28,015
Capital Expenditures (13,541) (23,143)
Proceeds from sale of PP&E 994 2,088
Free cash flow 15,706 6,960
Acquisitions of business (3,349) (38,410)
Acquisition liabilities (150) 1,784
Proceeds from disposal of operations -- 15,693
Net cash provided by operating
activities and investing activities $12,207 $(13,973)
CAPITAL EXPENDITURES DETAIL 3Q 02 YTD 3Q 03 YTD
Collection & Transportation $10,565 $12,730
Landfill Development 2,976 10,413
Total Capital Expenditures $13,541 $23,143
AS OF
12/31/02 9/30/03
TOTAL DEBT & $153,184 $169,005
CAPITAL LEASES
TOTAL EQUITY $96,970 $104,660
DEBT TO TOTAL CAPITAL 61.2% 61.8%
TOTAL LIABILITIES TO 2.1 2.2
EQUITY
WORKING CAPITAL $2,528 $(2,991)
DAYS SALES OUTSTANDING 37 39
CASH $1,734 $209
SERVICE REVENUE GROWTH 3Q 03
Price 0.8%
Volume 2.4%
Fuel Surcharge 0.8%
Total Internal Growth 4.0%
Commodities -1.0%
Acquisitions 6.2%
Total Service Revenue Growth 9.2%
SERVICE REVENUE MIX 3Q 03
Collection 78.3%
Disposal and Transfer 16.1%
Recycling and Other 5.6%
100.0%
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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