Date: April 21, 2009
Source: Waste Services, Inc.
Strong core price growth of 3.8%.
Adjusted EBITDA of
Adjusted EBITDA margin of 21.4% for the quarter as compared to 21.1% in 2008.
Adjusted earnings per share(1) from continuing operations increased to
Total debt reduced by
Provides adjusted earnings per share(1) guidance of
Internal revenue growth from price was
Excluding recycled commodity sales, net of commodity surcharges, core internal revenue growth from price was 3.8%.
Internal revenue relating to volume declined by
Foreign currency translation accounted for
(1) Adjusted EPS is defined as earnings per share as adjusted for gains on the sale of non-operating assets and certain non-cash adjustments, primarily cumulative adjustments to stock-based compensation, using the average statutory income tax rate estimated at 36% (see table on page 3).
Reconciliation of Non-GAAP Measures:
The following table reconciles the differences between income from continuing operations, as determined under US GAAP, and EBITDA from continuing operations, a non-GAAP financial measure (in thousands) (unaudited):
For The Three Months
Ended March 31,
2009 2008
Income from continuing operations $4,010 $5,330
Income tax provision (benefit) 2,588 (3,397)
Change in fair value of warrants (1,771) -
Interest expense 7,498 10,238
Depreciation, depletion and amortization 10,360 11,702
EBITDA from continuing operations (1) $22,685 $23,873
The following table reconciles the differences between EBITDA from continuing operations and Adjusted EBITDA from continuing operations for the three months ended
For The Three Months
Ended March 31,
2009 2008
EBITDA from continuing operations (1) $22,685 $23,873
Adjustments to EBITDA from continuing
operations (as defined per credit
agreement):
Gain on sale of assets (3,520) (245)
Non-cash items (2) 1,378 963
Adjusted EBITDA from continuing operations (1) $20,543 $24,591
(1) EBITDA from continuing operations and Adjusted EBITDA from continuing operations ("Adjusted EBITDA from continuing operations") are non-GAAP measures used by management to measure performance. We also believe that EBITDA from continuing operations and Adjusted EBITDA from continuing operations may be used by certain investors to analyze and compare our operating performance between accounting periods and against the operating results of other companies that have different financing and capital structures or tax rates and to measure our ability to service our debt. In addition, management uses EBITDA from continuing operations, among other things, as an internal performance measure. Our lenders also use Adjusted EBITDA from continuing operations to measure our ability to service and/or incur additional indebtedness under our credit facilities. However, EBITDA from continuing operations and Adjusted EBITDA from continuing operations should not be considered in isolation or as a substitute for net income, cash flows or other financial statement data prepared in accordance with US GAAP or as a measure of our performance, profitability or liquidity. EBITDA from continuing operations and Adjusted EBITDA from continuing operations are not calculated under US GAAP and therefore are not necessarily comparable to similarly titled measures of other companies.
(2) Non-cash adjustments primarily include stock-based compensation expense and gains and losses on foreign exchange.
The following table reconciles the differences between income (loss) from continuing operations before income taxes, as determined under US GAAP, and adjusted income from continuing operations for the three months ended
2009 2008
Income from continuing operations before income
taxes $6,598 $1,933
Adjustments:
Gain from sale of non-operating assets (3,262) -
Change in fair value of warrants (1,771) -
Other non-cash charges 668 -
Adjusted income from continuing operations before
income taxes 2,233 1,933
Income tax provision (benefit) at estimated average
statutory rate of 36% 804 696
Adjusted income from continuing operations $1,429 $1,237
Basic and diluted normalized earnings per share:
Basic and diluted normalized earnings per share -
continuing operations $0.031 $0.027
Weighted average common shares outstanding
Basic 46,254 46,075
Diluted 46,280 46,093
We will host an investor and analyst conference call on
Safe Harbor for Forward-Looking Statements
Certain matters discussed in this press release are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements describe the company's future plans, objectives and goals. These forward-looking statements involve risks and uncertainties which could cause actual results to differ materially from the plans, objectives and goals set forth in this press release. Factors which could materially affect such forward-looking statements can be found in the company's periodic reports filed with the Securities and Exchange Commission, including risk factors detailed in the company's Form 10-K for the year ended
The forward-looking statements made in this press release are only made as of the date hereof and Waste Services undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.
This release does not constitute an offer to sell or the solicitation of any offer to buy any securities. The company's securities may not be offered or sold in
Waste Services, Inc., a
WASTE SERVICES, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
Three Months Ended
March 31,
2009 2008
Revenue $95,792 $116,609
Operating and other expenses:
Cost of operations (exclusive of depreciation,
depletion and amortization) 63,208 76,544
Selling, general and administrative expense
(exclusive of depreciation, depletion and
amortization) 13,209 16,365
Depreciation, depletion and amortization 10,360 11,702
Gain on sale of property and equipment, foreign
exchange and other (3,310) (173)
Income from operations 12,325 12,171
Interest expense 7,498 10,238
Change in fair value of warrants (1,771) -
Income from continuing operations before
income taxes 6,598 1,933
Income tax provision (benefit) 2,588 (3,397)
Income from continuing operations 4,010 5,330
Income from discontinued operations, net
of income tax provision of $265 for the three
months ended March 31, 2008 - 409
Gain on sale of discontinued operations, net
of income tax provision of $4,549 for the three
months ended March 31, 2008 - 6,969
Net income $4,010 $12,708
Basic and diluted earnings per share:
Earnings per share - continuing operations $0.09 $0.12
Earnings per share - discontinued operations - 0.16
Earnings per share - basic and diluted $0.09 $0.28
Weighted average common shares outstanding:
Basic 46,254 46,075
Diluted 46,280 46,093
WASTE SERVICES, INC.
SUPPLEMENTAL UNAUDITED BALANCE SHEET AND CASH FLOW DATA
(In thousands)
Balance Sheet Data: March 31, December 31,
2009 2008
Cash $11,569 $7,227
Current assets $70,975 $72,961
Total assets $825,202 $840,927
Current liabilities $89,346 $93,245
Debt:
Senior secured credit facilities:
US Revolver $23,499 $34,600
Canadian Revolver 28,329 27,699
US Term loan 37,719 38,125
Canadian Term Loan 98,867 103,505
Senior subordinated notes 158,907 158,854
Other notes 8,961 9,286
Total debt $356,282 $372,069
Shareholders' equity $336,419 $335,018
Cash Flow Data:
Three Months Ended
March 31,
2009 2008
Net cash flows provided by continuing
operations $16,905 $8,334
Net cash flows provided by (used in)
investing activities for continuing
operations $(1,007) $45,209
Net cash flows used in financing
activities of continuing operations $(11,818) $(42,859)
Capital expenditures from continuing
operations $6,944 $10,407
WASTE SERVICES, INC.
SUPPLEMENTAL UNAUDITED GROWTH RATES AND COUNTRY DATA
(In thousands)
Waste Services, Inc.
Revenue Growth
For The Three Months Ended
March 31, 2009
(in thousands)
Total Revenue, March 31, 2008 $116,609
Impact on revenue from changes in:
Price 3,248 2.8%
Fuel Surcharge (3,550) -3.0%
Volume (5,443) -4.7%
Acquisition / Disposition 481 0.4%
Gain / Loss of Contracts (4,792) -4.1%
Other 113 0.1%
Foreign currency impact (10,874) -9.3%
Total Revenue, March 31, 2009 $95,792
COUNTRY DATA
(In thousands)
Three Months Ended March 31, 2009
US Canada Total
Revenue $50,243 100.0% $45,549 100.0% $95,792 100.0%
Operating expenses:
Cost of operations 31,975 63.6% 31,233 68.6% 63,208 66.0%
Selling, general
and administrative
expense 6,446 12.8% 6,763 14.8% 13,209 13.8%
Depreciation,
depletion and
amortization 6,364 12.7% 3,996 8.8% 10,360 10.8%
Foreign exchange
(gain) loss and
other (3,474) -6.9% 164 0.4% (3,310) -3.5%
Income from continuing
Operations $8,932 17.8% $3,393 7.4% $12,325 12.9%
Three Months Ended March 31, 2008
US Canada Total
Revenue $60,090 100.0% $56,519 100.0% $116,609 100.0%
Operating expenses:
Cost of operations 38,916 64.8% 37,628 66.6% 76,544 65.6%
Selling, general
and administrative
expense 8,100 13.5% 8,265 14.6% 16,365 14.0%
Depreciation,
depletion and
amortization 6,759 11.2% 4,943 8.7% 11,702 10.1%
Foreign exchange
gain and other (200) -0.3% 27 0.1% (173) -0.1%
Income from continuing
operations $6,515 10.8% $5,656 10.0% $12,171 10.4%
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