Weekly News Bulletin: Oct. 23-29, 2007


Waste Industries Receives Offer to Go Private for $36.75 per Share

Waste Industries USA Inc. received a takeover offer of $36.75 per share from an investor group led by its chairman and chief executive. The leveraged buyout would have a value of $518.2 million based on the 14.1 million outstanding shares the company had as of Aug. 9. The group, which includes founder and Chairman Lonnie C. Poole Jr. and President and CEO Jim W. Perry, currently owns about 51 percent of the regional solid waste services company's stock. The group also includes Macquarie Infrastructure Partners and Goldman Sachs. Poole and Perry have agreed to oppose any competing offers, while supporting that of their own investor group. The company has appointed a special committee comprised of independent directors to consider the offer. J.P. Morgan Securities Inc. is assisting with the assessment process. The deal could be a harbinger of a new wave of industry consolidations and acquisitions to come...Read More »



Waste Connections' Third Quarter Earnings Up 31 Percent

Waste Connections Inc. exceeded analysts' expectations with a 31% increase in third quarter earnings. Net income rose to $28.7 million, or $0.41 per share, up from $21.9 million or $0.31 per share in the year-ago period. Revenue for the quarter increased 16 percent to $250.8 million from $216.5 million in the third quarter of 2006. Driving these results was sustained positive pricing. Landfill pricing increased by 2.5-3% during the quarter, while rolloff pricing was up by 7%. "Strong organic growth and a stable cost environment enabled us to exceed the upper end of our expectations for the quarter," said Ronald J. Mittelstaedt, chairman and CEO. "This strength in our existing business combined with the acceleration of acquisition activity in the second half of the year provides building blocks for revenue growth and continuing margin improvement in 2008 and beyond."...Read More »



House Passes Legislation on Rail Waste Facilities

The House of Representatives has passed the Clean Railroads Act of 2007, legislation authored by U.S. Sen. Frank R. Lautenberg (D-NJ) and cosponsored by Sen. Robert Menendez (D-NJ), that allows states to regulate solid waste processing facilities along rail lines. It was included as an amendment to larger rail safety legislation. The amendment eliminates a loophole in federal law that prohibits states from enforcing environmental, health and safety regulations at these rail sites. In September, the Senate passed a temporary measure authored by Sen. Lautenberg to allow New Jersey to regulate some solid waste processing facilities on railroads, but that measure which was included in a spending bill for transportation and housing programs, expires after one year. Lautenberg's Clean Railroads Act of 2007 would make these provisions permanent...Read More »



Republic Services Increases Earnings Outlook despite Setback

Republic Services offered some positiive news to investors despite some recent setbacks. The company, which plans to release third quarter earnings on November 6, said that it now expects to earn between $1.65-1.66 per share up from previous guidance of $1.59-1.62 per share in 2007. However, an October 18 filing with the Securities and Exchange Commission reveals that Republic will take a charge of $32.9 million, or $0.11 per share related to landfills, especially due to problems at the Countrywide Landfill in East Sparta, Ohio and the need to upgrade leachate equipment at a landfill in Contra Costa County, Calif...Read More »



Supreme Court's Oneida-Herkimer Decision Could Upset Bond Markets

The Supreme Court will hear oral arguments in Davis v. Kentucky on Nov. 5. At issue for the court is whether it will reverse the lower courts decision that preferential state tax treatment of municipal bonds violates the commerce clause. From a purely legal perspective the court should uphold the decision. However, most experts agree that the court will probably reverse the decision out of reluctance to upset the state bond markets. The court could site its United Haulers v. Oneida-Herkimer Solid Waste Management Authority case as precedent for allowing discriminatory practices by public entities...Read More »



FORTISTAR Acquires Algonquin's US Landfill Gas to Energy Projects

White Plains, NY-based FORTISTAR will acquire Algonquin Power Income Fund's six landfill gas to energy projects located in California and New Hampshire and representing 18 megawatts of power generation capacity. Jon Maurer, FORTISTAR Managing Director, said "By the end of 2007, FORTISTAR's ongoing growth program will have increased our landfill gas to energy capacity by 25%." FORTISTAR through its Methane Group owns or will own fifty landfill gas to energy projects, representing approximately 12% of the developed market...Read More »



American Ecology Posts Strong Third Quarter on Substantially Higher Volumes

Special waste management company American Ecology reported third quarter earnings of $4.5 million, or $0.25 per share, up 51% from net income of $3.0 million, or $0.16 per share, earned in the same period last year. Revenues for the quarter increased 44% to $39.4 million, up from $27.5 million in the same quarter last year. The strong results were attributed in part to a 55% increase in volumes into their Idaho, Nevada and Texas waste facilities...Read More »



SCS Engineers to Help Dalton-Whitfield Landfill Sell Gas to Dow Chemical

With the help of SCS Engineers, the Dalton-Whitfield Solid Waste Authority will provide landfill gas along a two mile pipeline to a Dow Chemical plant located in Dalton, GA. There, at the epicenter of the carpet industry for North America, Dow makes latex used in carpet backing. SCS will construct both the gas collection system and the pipeline...Read More »



West Virginia DEP Discovers 20,000 Illegally Dumped Tires

Officials with the West Virginia Department of Environmental Protection report that an anonymous tip led to the discovery of 20,000 tires dumped illegally near the town of Sissonville. It is one of the biggest such dumps in state history. The DEP is attempting to determine the previous owner of the site which is thought to have been inactive for ten years or more...Read More »



BFI Canada to Announce Third Quarter Earnings on November 12

BFI Canada plans to announce third quarter financial results at the close of markets on November 12 and host a conference call the following day at 8:30 a.m. (ET) to discuss them...Read More »


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