Date: February 22, 2011
Source: IESI-BFC Ltd.
(All amounts are in thousands of
Management Commentary
Reported revenues increased
Organic gross revenue, which includes intercompany revenues, grew 4.9% on
a consolidated basis and is comprised of total price and volume growth of 3.1%
and 1.8%, respectively. Quarterly price and volume improvements in
Strong revenue growth translated into strong adjusted EBITDA(A) and operating
income growth. Adjusted EBITDA(A) was
We also generated higher adjusted net income(A) quarter over quarter. Adjusted
net income(A) for the fourth quarter of 2010 was
Free cash flow(B) for the quarter totalled
"In 2010, our Company once again distinguished itself as a growth leader in
the North American waste management industry," said
Mr. Carrigan continued, "In 2011, we are strongly positioned to further improve our results through organic growth initiatives. Our outlook for 2011, which excludes the impact of additional acquisitions, anticipates revenue growth of 25.9%, adjusted EBITDA(A) growth of 32.9%, adjusted EBITDA(A) margin expansion of 170 basis points, and free cash flow growth(B) of 41.1%. We remain focused on identifying the most accretive opportunities for the deployment of our additional cash. Our balanced approach to creating shareholder value will continue to include a disciplined acquisition program, the payment of quarterly dividends in 2011, as well as other opportunities that meet our return criteria."
For the year ended
For the year ended
Financial and Other Highlights
For the Three Months Ended
-- Revenues increased$167.4 million or 63.8% ($156.5 million or 59.6%, excluding FX) -- Adjusted EBITDA(A) increased$47.6 million or 63.2% ($44.6 million or 59.3%, excluding FX) -- Adjusted EBITDA(A) margin, on a reported basis, was 28.6% -- Free cash flow(B) increased$18.5 million or 78.8% ($18.3 million or 78.1%, excluding FX) -- Free cash flow(B) yield of 9.8% -- Adjusted net income(A) per diluted share,$0.22 -- Consolidated price increased 3.1%, prepared on a comparable basis -- Consolidated volumes increased 1.8%, prepared on a comparable basis
For the Year Ended
-- Revenues increased$421.3 million or 41.8% ($364.3 or 36.1%, excluding FX) -- Adjusted EBITDA(A) increased$123.4 million or 42.5% ($104.8 million or 36.1%, excluding FX) -- Adjusted EBITDA(A) margin, on a reported basis, was 28.9% -- Free cash flow(B) increased$77.2 million or 67.6% ($67.7 million or 59.3%, excluding FX) -- Free cash flow(B) yield of 13.4% -- Adjusted net income(A) per diluted share,$0.94 -- Consolidated price increased 4.1%, prepared on a comparable basis -- Consolidated volumes increased 2.5%, prepared on a comparable basis
2011 Outlook
The Company is providing its outlook for 2011 assuming no change in the current economic environment and excluding the impact of any additional acquisitions. For the purposes of these estimates, the Company is assuming a Canadian to U.S. dollar exchange rate of parity.
The outlook provided below is forward looking. Our actual results may differ materially and are subject to risks and uncertainties which are outlined in the forward-looking statements section of this press release.
-- Revenue is estimated to be approximately$1.8 billion -- Adjusted EBITDA(A) is estimated to be approximately$550 million -- Amortization expense, as a percentage of revenue, is estimated to be approximately 14.5% -- Capital and landfill expenditures are estimated to be approximately$155 million -- The effective tax rate is estimated to be approximately 36% of income before income tax expense and net loss from equity accounted investee -- Cash taxes are estimated to be approximately$54 million -- Adjusted net income(A) per diluted share is estimated to be$1.16 -- Free cash flow(B) is estimated to be approximately$270 million -- Expected annual cash dividend of$0.50 Canadian ("C") per share, payable on a quarterly basis
Other Highlights for the Three Months and Year Ended
WSI Acquisition
On
We executed the transaction pursuant to our strategy of growth through acquisition. Specifically, we believe that the acquisition will provide us with the opportunity to diversify our business across U.S. and Canadian markets, customer segments and service lines. In addition, the transaction enables us to increase our internalization in the Canadian and U.S. northeast markets. We also believe this acquisition will create annual synergies and cash flow and earnings per share accretion, which we expect will enhance short and long-term returns to shareholders. We plan to direct the expected additional cash flow resulting from the combined performance of the companies towards any combination of the following: growth capital, accretive acquisitions, debt reduction, common share repurchases or dividend payments.
We completed the acquisition on
In addition, we assumed WSI's unexercised and outstanding options and warrants on closing which represents an obligation to issue a maximum of 505 and 194 common shares, respectively.
As outlined in the long-term debt section of this press release, we amended
our long-term debt facilities in
On the closing of the WSI acquisition, we expected our pro forma adjusted
EBITDA(A) ratio, prepared on a combined basis and assuming FX parity, to be
approximately 2.7 times. However this ratio improved to approximately 2.6 times.
As of
Acquisitions
In the fourth quarter, we completed four "tuck-in" acquisitions, two in each of the U.S. south and northeast segments. These "tuck-in" acquisitions, which included the acquisition of Fred Weber, were financed from excess free cash flow(B) and U.S. and Canadian credit facility advances.
Quarterly Dividend Declared
The Company's Board of Directors declared a quarterly dividend of
Financial Reporting Changes
On
On
Financial Highlights
(in thousands of U.S. dollars, except per weighted average share amounts, unless otherwise stated)
Three months ended Year ended
December 31 December 31
----------------------------------------------------------------------------
2010 2009 2010 2009
----------------------------------------------------------------------------
(unaudited) (unaudited) (unaudited) (unaudited)
----------------------------------------------------------------------------
Operating results
Revenues $ 429,879 $ 262,462 $1,429,765 $1,008,466
Operating expenses 255,261 152,135 839,973 588,104
Selling, general and
administration
("SG&A") 56,186 40,897 192,865 136,846
Restructuring
expenses 1,388 - 5,180 -
Amortization 62,263 36,000 207,666 156,702
Net gain on sale of
capital and landfill
assets (33) (70) (414) (198)
----------------------------------------------------------------------------
Operating income 54,814 33,500 184,495 127,012
Interest on long-term
debt 14,822 7,979 48,786 34,225
Net foreign exchange
loss 33 38 47 276
Net gain on financial
instruments (2,245) (696) (5,493) (1,562)
Conversion costs - 90 - 298
Other expenses 2,566 53 3,210 162
----------------------------------------------------------------------------
Income before net
income tax expense
and net loss from
equity accounted
investee 39,638 26,036 137,945 93,613
Net income tax
expense 17,953 16,161 55,658 39,885
Net loss from equity
accounted investee 2 - 118 -
----------------------------------------------------------------------------
Net income $ 21,683 $ 9,875 $ 82,169 $ 53,728
----------------------------------------------------------------------------
Net income per
weighted average
share, basic $ 0.18 $ 0.11 $ 0.77 $ 0.64
Net income per
weighted average
share, diluted $ 0.18 $ 0.11 $ 0.76 $ 0.63
Weighted average
number of shares
outstanding
(thousands), basic 110,752 82,332 96,451 73,892
Weighted average
number of shares
outstanding
(thousands), diluted 121,681 93,431 107,479 85,020
Adjusted EBITDA(A) $ 122,987 $ 75,363 $ 413,826 $ 290,449
Adjusted operating
income(A) $ 60,757 $ 39,433 $ 206,574 $ 133,945
Adjusted net
income(A) $ 26,818 $ 15,039 $ 100,976 $ 59,591
Adjusted net
income(A)per
weighted average
share, basic $ 0.22 $ 0.16 $ 0.94 $ 0.71
Adjusted net
income(A)per
weighted average
share, diluted $ 0.22 $ 0.16 $ 0.94 $ 0.70
Replacement and
growth expenditures
(see page 15)
Replacement
expenditures $ 43,419 $ 24,580 $ 100,578 $ 73,674
Growth expenditures 14,611 9,821 42,063 48,602
----------------------------------------------------------------------------
Total replacement and
growth expenditures $ 58,030 $ 34,401 $ 142,641 $ 122,276
----------------------------------------------------------------------------
Free cash flow(B)
Cash generated from
operating activities $ 120,667 $ 63,620 $ 293,861 $ 256,269
Free cash flow(B) $ 42,024 $ 23,505 $ 191,300 $ 114,109
Free cash flow(B) per
weighted average
share, diluted $ 0.35 $ 0.25 $ 1.78 $ 1.34
Dividends
Dividends declared
(common shares) $ 14,954 $ 19,265 $ 48,179 $ 68,825
Dividends declared
(participating
preferred shares
("PPSs")) - 2,608 4,006 9,748
----------------------------------------------------------------------------
Total dividends
declared $ 14,954 $ 21,873 $ 52,185 $ 78,573
----------------------------------------------------------------------------
Total dividends
declared per
weighted average
share, diluted $ 0.12 $ 0.23 $ 0.49 $ 0.92
2010
----------------------------------------------------------------------------
Consolidated Statement
Consolidated of Operations and
Balance Sheet Comprehensive Income
----------------------------------------------------------------------------
Cumulative
Current Average Average
----------------------------------------------------------------------------
March 31 $ 0.9846 $ 0.9607 $ 0.9607
June 30 $ 0.9429 $ 0.9731 $ 0.9669
September 30 $ 0.9711 $ 0.9624 $ 0.9654
December 31 $ 1.0054 $ 0.9873 $ 0.9708
2009
----------------------------------------------------------------------------
Consolidated Statement
Consolidated of Operations and
Balance Sheet Comprehensive Income
----------------------------------------------------------------------------
Cumulative
Current Average Average
----------------------------------------------------------------------------
March 31 $ 0.7935 $ 0.8030 $ 0.8030
June 30 $ 0.8602 $ 0.8568 $ 0.8290
September 30 $ 0.9327 $ 0.9113 $ 0.8547
December 31 $ 0.9555 $ 0.9467 $ 0.8760
FX Impact on Consolidated Results
The following tables have been prepared to assist readers in assessing the
impact of FX on select consolidated results for the three months and year ended
Three months ended
----------------------------------------------------------------------------
December December December
31, 2009 31, 2010 31, 2010
----------------------------------------------------------------------------
(unaudited) (unaudited) (unaudited)
----------------------------------------------------------------------------
(organic,
acquisition and (holding FX
other non- constant with
operating the comparative
(as reported) changes) period)
----------------------------------------------------------------------------
Consolidated Statement
of Operations
Revenues $ 262,462 $ 156,536 $ 418,998
Operating expenses 152,135 96,751 248,886
SG&A 40,897 13,698 54,595
Restructuring expenses - 1,310 1,310
Amortization 36,000 24,651 60,651
Net gain on sale of
capital and landfill
assets (70) 35 (35)
----------------------------------------------------------------------------
Operating income 33,500 20,091 53,591
Interest on long-term
debt 7,979 6,519 14,498
Net foreign exchange
loss 38 (7) 31
Net gain on financial
instruments (696) (1,522) (2,218)
Conversion costs 90 (90) -
Other expenses 53 2,264 2,317
----------------------------------------------------------------------------
Income before net
income tax expense
and net loss from
equity accounted
investee 26,036 12,927 38,963
Net income tax expense 16,161 1,537 17,698
Net loss from equity
accounted investee - 3 3
----------------------------------------------------------------------------
Net income $ 9,875 $ 11,387 $ 21,262
----------------------------------------------------------------------------
Adjusted EBITDA(A) $ 75,363 $ 44,658 $ 120,021
Adjusted operating
income(A) $ 39,433 $ 19,813 $ 59,246
Adjusted net income(A) $ 15,039 $ 10,807 $ 25,846
Free cash flow(B) $ 23,505 $ 18,347 $ 41,852
Three months ended
---------------------------------------------------------
December December
31, 2010 31, 2010
---------------------------------------------------------
(unaudited) (unaudited)
---------------------------------------------------------
(FX impact) (as reported)
---------------------------------------------------------
Consolidated Statement
of Operations
Revenues $ 10,881 $ 429,879
Operating expenses 6,375 255,261
SG&A 1,591 56,186
Restructuring expenses 78 1,388
Amortization 1,612 62,263
Net gain on sale of
capital and landfill
assets 2 (33)
---------------------------------------------------------
Operating income 1,223 54,814
Interest on long-term
debt 324 14,822
Net foreign exchange
loss 2 33
Net gain on financial
instruments (27) (2,245)
Conversion costs - -
Other expenses 249 2,566
---------------------------------------------------------
Income before net
income tax expense
and net loss from
equity accounted
investee 675 39,638
Net income tax expense 255 17,953
Net loss from equity
accounted investee (1) 2
---------------------------------------------------------
Net income $ 421 $ 21,683
---------------------------------------------------------
Adjusted EBITDA(A) $ 2,966 $ 122,987
Adjusted operating
income(A) $ 1,511 $ 60,757
Adjusted net income(A) $ 972 $ 26,818
Free cash flow(B) $ 172 $ 42,024
Year ended
----------------------------------------------------------------------------
December December December
31, 2009 31, 2010 31, 2010
----------------------------------------------------------------------------
(unaudited) (unaudited)
----------------------------------------------------------------------------
(organic,
acquisition and (holding FX
other non- constant with the
operating comparative
(as reported) changes) period)
----------------------------------------------------------------------------
Consolidated
Statement of
Operations
Revenues $ 1,008,466 $ 364,282 $ 1,372,748
Operating expenses 588,104 220,907 809,011
SG&A 136,846 47,194 184,040
Restructuring
expenses - 4,719 4,719
Amortization 156,702 43,128 199,830
Net gain on sale of
capital and
landfill assets (198) (176) (374)
----------------------------------------------------------------------------
Operating income 127,012 48,510 175,522
Interest on long-
term debt 34,225 13,120 47,345
Net foreign
exchange loss 276 (223) 53
Net gain on
financial
instruments (1,562) (3,940) (5,502)
Conversion costs 298 (298) -
Other expenses 162 2,779 2,941
----------------------------------------------------------------------------
Income before net
income tax expense
and net loss from
equity accounted
investee 93,613 37,072 130,685
Net income tax
expense 39,885 13,276 53,161
Net loss from
equity accounted
investee - 106 106
----------------------------------------------------------------------------
Net income $ 53,728 $ 23,690 $ 77,418
----------------------------------------------------------------------------
Adjusted EBITDA(A) $ 290,449 $ 104,781 $ 395,230
Adjusted operating
income(A) $ 133,945 $ 61,865 $ 195,810
Adjusted net
income(A) $ 59,591 $ 32,413 $ 92,004
Free cash flow(B) $ 114,109 $ 67,659 $ 181,768
Year ended
--------------------------------------------------------
December December
31, 2010 31, 2010
--------------------------------------------------------
(unaudited) (unaudited)
--------------------------------------------------------
(FX impact) (as reported)
--------------------------------------------------------
Consolidated
Statement of
Operations
Revenues $ 57,017 $ 1,429,765
Operating expenses 30,962 839,973
SG&A 8,825 192,865
Restructuring
expenses 461 5,180
Amortization 7,836 207,666
Net gain on sale of
capital and
landfill assets (40) (414)
--------------------------------------------------------
Operating income 8,973 184,495
Interest on long-
term debt 1,441 48,786
Net foreign
exchange loss (6) 47
Net gain on
financial
instruments 9 (5,493)
Conversion costs - -
Other expenses 269 3,210
--------------------------------------------------------
Income before net
income tax expense
and net loss from
equity accounted
investee 7,260 137,945
Net income tax
expense 2,497 55,658
Net loss from
equity accounted
investee 12 118
--------------------------------------------------------
Net income $ 4,751 $ 82,169
--------------------------------------------------------
Adjusted EBITDA(A) $ 18,596 $ 413,826
Adjusted operating
income(A) $ 10,764 $ 206,574
Adjusted net
income(A) $ 8,972 $ 100,976
Free cash flow(B) $ 9,532 $ 191,300
Management's Discussion
(all amounts are in thousands of U.S. dollars, unless otherwise stated)
Segment Highlights
Three months ended December 31
----------------------------------------------------------------------------
2009 2010 Change
----------------------------------------------------------------------------
(2010 holding FX
(holding FX constant with the
constant with the comparative
comparative period less 2009
(as reported) period) as reported)
----------------------------------------------------------------------------
Revenues $ 262,462 $ 418,998 $ 156,536
----------------------------------------------------------------------------
Canada $ 96,473 $ 170,703 $ 74,230
U.S. south $ 86,882 $ 158,760 $ 71,878
U.S. northeast $ 79,107 $ 89,535 $ 10,428
Operating expenses $ 152,135 $ 248,886 $ 96,751
----------------------------------------------------------------------------
Canada $ 48,463 $ 96,302 $ 47,839
U.S. south $ 53,063 $ 96,609 $ 43,546
U.S. northeast $ 50,609 $ 55,975 $ 5,366
SG&A (as reported) $ 40,897 $ 54,595 $ 13,698
----------------------------------------------------------------------------
Canada $ 8,449 $ 15,547 $ 7,098
U.S. south $ 10,232 $ 17,433 $ 7,201
U.S. northeast $ 6,814 $ 7,499 $ 685
Corporate $ 15,402 $ 14,116 $ (1,286)
EBITDA(A)(as
reported) $ 69,430 $ 115,517 $ 46,087
----------------------------------------------------------------------------
Canada $ 39,561 $ 58,854 $ 19,293
U.S. south $ 23,587 $ 44,718 $ 21,131
U.S. northeast $ 21,684 $ 26,061 $ 4,377
Corporate $ (15,402) $ (14,116) $ 1,286
Adjusted SG&A $ 34,964 $ 50,152 $ 15,188
----------------------------------------------------------------------------
Canada $ 8,449 $ 15,547 $ 7,098
U.S. south $ 10,232 $ 17,433 $ 7,201
U.S. northeast $ 6,814 $ 7,499 $ 685
Corporate $ 9,469 $ 9,673 $ 204
Adjusted EBITDA(A) $ 75,363 $ 119,960 $ 44,597
----------------------------------------------------------------------------
Canada $ 39,561 $ 58,854 $ 19,293
U.S. south $ 23,587 $ 44,718 $ 21,131
U.S. northeast $ 21,684 $ 26,061 $ 4,377
Corporate $ (9,469) $ (9,673) $ (204)
Three months ended December 31
--------------------------------------------------------
2010 Change
--------------------------------------------------------
(2010 as reported
less 2009 as
(as reported) reported)
--------------------------------------------------------
Revenues $ 429,879 $ 167,417
--------------------------------------------------------
Canada $ 181,584 $ 85,111
U.S. south $ 158,760 $ 71,878
U.S. northeast $ 89,535 $ 10,428
Operating expenses $ 255,261 $ 103,126
--------------------------------------------------------
Canada $ 102,677 $ 54,214
U.S. south $ 96,609 $ 43,546
U.S. northeast $ 55,975 $ 5,366
SG&A (as reported) $ 56,186 $ 15,289
--------------------------------------------------------
Canada $ 16,509 $ 8,060
U.S. south $ 17,433 $ 7,201
U.S. northeast $ 7,499 $ 685
Corporate $ 14,745 $ (657)
EBITDA(A)(as
reported) $ 118,432 $ 49,002
--------------------------------------------------------
Canada $ 62,398 $ 22,837
U.S. south $ 44,718 $ 21,131
U.S. northeast $ 26,061 $ 4,377
Corporate $ (14,745) $ 657
Adjusted SG&A $ 51,631 $ 16,667
--------------------------------------------------------
Canada $ 16,509 $ 8,060
U.S. south $ 17,433 $ 7,201
U.S. northeast $ 7,499 $ 685
Corporate $ 10,190 $ 721
Adjusted EBITDA(A) $ 122,987 $ 47,624
--------------------------------------------------------
Canada $ 62,398 $ 22,837
U.S. south $ 44,718 $ 21,131
U.S. northeast $ 26,061 $ 4,377
Corporate $ (10,190) $ (721)
Segment Highlights (continued)
Year ended December 31
----------------------------------------------------------------------------
2009 2010 Change
----------------------------------------------------------------------------
(2010 holding FX
(holding FX constant with the
constant with the comparative
comparative period less 2009
(as reported) period) as reported)
----------------------------------------------------------------------------
Revenues $ 1,008,466 $ 1,372,748 $ 364,282
----------------------------------------------------------------------------
Canada $ 349,288 $ 527,124 $ 177,836
U.S. south $ 340,187 $ 502,308 $ 162,121
U.S. northeast $ 318,991 $ 343,316 $ 24,325
Operating expenses $ 588,104 $ 809,011 $ 220,907
----------------------------------------------------------------------------
Canada $ 178,147 $ 286,248 $ 108,101
U.S. south $ 209,279 $ 306,903 $ 97,624
U.S. northeast $ 200,678 $ 215,860 $ 15,182
SG&A (as reported) $ 136,846 $ 184,040 $ 47,194
----------------------------------------------------------------------------
Canada $ 30,497 $ 45,079 $ 14,582
U.S. south $ 37,999 $ 53,141 $ 15,142
U.S. northeast $ 28,076 $ 30,012 $ 1,936
Corporate $ 40,274 $ 55,808 $ 15,534
EBITDA(A)(as
reported) $ 283,516 $ 435,505 $ 96,181
----------------------------------------------------------------------------
Canada $ 140,644 $ 195,797 $ 55,153
U.S. south $ 92,909 $ 142,264 $ 49,355
U.S. northeast $ 90,237 $ 97,444 $ 7,207
Corporate $ (40,274) $ (55,808) $ (15,534)
Adjusted SG&A $ 129,913 $ 128,232 $ 38,695
----------------------------------------------------------------------------
Canada $ 30,497 $ 45,079 $ 14,582
U.S. south $ 37,999 $ 53,141 $ 15,142
U.S. northeast $ 28,076 $ 30,012 $ 1,936
Corporate $ 33,341 $ 40,376 $ 7,035
Adjusted EBITDA(A) $ 290,449 $ 395,129 $ 104,680
----------------------------------------------------------------------------
Canada $ 140,644 $ 195,797 $ 55,153
U.S. south $ 92,909 $ 142,264 $ 49,355
U.S. northeast $ 90,237 $ 97,444 $ 7,207
Corporate $ (33,341) $ (40,376) $ (7,035)
Year ended December 31
--------------------------------------------------------
2010 Change
--------------------------------------------------------
(2010 as reported
less 2009 as
(as reported) reported)
--------------------------------------------------------
Revenues $ 1,429,765 $ 421,299
--------------------------------------------------------
Canada $ 584,141 $ 234,853
U.S. south $ 502,308 $ 162,121
U.S. northeast $ 343,316 $ 24,325
Operating expenses $ 839,973 $ 251,869
--------------------------------------------------------
Canada $ 317,210 $ 139,063
U.S. south $ 306,903 $ 97,624
U.S. northeast $ 215,860 $ 15,182
SG&A (as reported) $ 192,865 $ 56,019
--------------------------------------------------------
Canada $ 49,955 $ 19,458
U.S. south $ 53,141 $ 15,142
U.S. northeast $ 30,012 $ 1,936
Corporate $ 59,757 $ 19,483
EBITDA(A)(as
reported) $ 396,927 $ 113,411
--------------------------------------------------------
Canada $ 216,976 $ 76,332
U.S. south $ 142,264 $ 49,355
U.S. northeast $ 97,444 $ 7,207
Corporate $ (59,757) $ (19,483)
Adjusted SG&A $ 175,966 $ 46,053
--------------------------------------------------------
Canada $ 49,955 $ 19,458
U.S. south $ 53,141 $ 15,142
U.S. northeast $ 30,012 $ 1,936
Corporate $ 42,858 $ 9,517
Adjusted EBITDA(A) $ 413,826 $ 123,377
--------------------------------------------------------
Canada $ 216,976 $ 76,332
U.S. south $ 142,264 $ 49,355
U.S. northeast $ 97,444 $ 7,207
Corporate $ (42,858) $ (9,517)
Revenues
Gross revenue by service type
(prepared on a comparable basis)
The following tables compare gross revenues for the three months and year
ended
Three months ended December 31, 2010
----------------------------------------------------------------------------
Canada -
stated in Canada - U.S. -
thousands of percentage percentage
Canadian of gross of gross
dollars revenue U.S. revenue
----------------------------------------------------------------------------
Commercial $ 71,347 34.3 $ 76,090 27.3
Industrial 34,063 16.3 39,168 14.0
Residential 32,847 15.7 60,322 21.6
Transfer and disposal 58,477 28.0 89,765 32.2
Recycling and other 11,870 5.7 13,642 4.9
----------------------------------------------------------------------------
Gross revenues 208,604 100.0 278,987 100.0
----------------------------------------------------------------------------
Three months ended December 31, 2009
----------------------------------------------------------------------------
Canada -
stated in Canada - U.S. -
thousands of percentage percentage
Canadian of gross of gross
dollars revenue U.S. revenue
----------------------------------------------------------------------------
Commercial $ 69,729 36.4 $ 71,681 28.2
Industrial 32,401 16.9 35,746 14.0
Residential 32,081 16.8 53,312 20.9
Transfer and disposal 48,820 25.5 83,943 33.0
Recycling and other 8,379 4.4 9,955 3.9
----------------------------------------------------------------------------
Gross revenues 191,410 100.0 254,637 100.0
----------------------------------------------------------------------------
Year ended December 31, 2010
----------------------------------------------------------------------------
Canada -
stated in Canada - U.S. -
thousands of percentage percentage
Canadian of gross of gross
dollars revenue U.S. revenue
----------------------------------------------------------------------------
Commercial $ 296,606 35.5 $ 297,753 26.9
Industrial 142,447 17.0 157,470 14.3
Residential 130,960 15.6 229,228 20.8
Transfer and disposal 221,175 26.4 363,233 32.9
Recycling and other 46,006 5.5 55,984 5.1
----------------------------------------------------------------------------
Gross revenues 837,194 100.0 1,103,668 100.0
----------------------------------------------------------------------------
Year ended December 31, 2009
----------------------------------------------------------------------------
Canada -
stated in Canada - U.S. -
thousands of percentage percent-age
Canadian of gross of gross
dollars revenue U.S. revenue
----------------------------------------------------------------------------
Commercial $ 278,173 37.4 $ 265,616 26.6
Industrial 132,057 17.7 149,106 14.9
Residential 123,008 16.5 207,337 20.8
Transfer and disposal 184,063 24.8 338,734 33.9
Recycling and other 27,148 3.6 38,218 3.8
----------------------------------------------------------------------------
Gross revenues 744,449 100.0 999,011 100.0
----------------------------------------------------------------------------
Gross revenue growth or decline components - expressed in percentages and excluding FX
(prepared on a comparable basis for 2010 only)
The tables below have been prepared on a "comparable basis" as outlined above. However, component percentages presented for 2009 have not been prepared on a comparable basis and accordingly do not include WSI's results.
Three months ended Three months ended
December 31, 2010 December 31, 2009
----------------------------------------------------------------------------
Canada U.S. Canada U.S.
----------------------------------------------------------------------------
Price
Core price 2.4 1.0 3.2 1.8
Fuel surcharges 0.9 0.5 (0.6) (2.2)
Recycling and other 0.7 1.0 - 0.6
----------------------------------------------------------------------------
Total price growth 4.0 2.5 2.6 0.2
Volume 2.3 1.3 0.3 (0.1)
----------------------------------------------------------------------------
Total organic gross revenue
growth 6.3 3.8 2.9 0.1
Acquisitions, net of divestitures 2.7 5.8 0.4 1.9
----------------------------------------------------------------------------
Total gross revenue growth 9.0 9.6 3.3 2.0
----------------------------------------------------------------------------
Year ended Year ended
December 31, 2010 December 31, 2009
----------------------------------------------------------------------------
Canada U.S. Canada U.S.
----------------------------------------------------------------------------
Price
Core price 3.1 2.1 3.2 2.2
Fuel surcharges 0.7 0.4 (1.0) (2.6)
Recycling and other 0.6 1.6 (0.2) (1.5)
----------------------------------------------------------------------------
Total price growth (decline) 4.4 4.1 2.0 (1.9)
Volume 4.3 1.1 (0.6) (2.3)
----------------------------------------------------------------------------
Total organic gross revenue
growth (decline) 8.7 5.2 1.4 (4.2)
Acquisitions, net of divestitures 3.8 5.6 1.5 1.9
----------------------------------------------------------------------------
Total gross revenue growth
(decline) 12.5 10.8 2.9 (2.3)
----------------------------------------------------------------------------
Three months ended
On a "comparable basis", prepared as if WSI's operations were combined with
ours in the current and previously comparable quarter, our Canadian segment
delivered price growth in every service line, excluding industrial. While industrial
pricing was down comparatively, comparative volumes increased resulting in a
net increase to gross revenue growth over the comparative period a year ago.
As in the third quarter of 2010, higher organic gross revenue growth delivered
by our existing Canadian operations was partially offset by a lower comparable
performance from WSI's operations in
With the exception of slightly lower pricing in our transfer and disposal service line, pricing and volumes were up comparably across all service lines in our U.S. south segment. While pricing was lower in our transfer and disposal service line, comparable volume gains more than offset this decline. Higher fuel surcharges and other "tuck-in" acquisitions contributed to the balance of growth in comparable gross revenues.
Gross revenues in our U.S. northeast segment increased as well. Excluding pricing in our residential service line, all of our service lines enjoyed higher price, or pricing that was largely unchanged, over the comparable period a year ago. The decline in residential pricing, while not significant, was due to lost business year to year which also contributed to lower volumes as well. Recycling volumes were also down slightly as were net transfer and disposal volumes, due in large part to weather. Higher comparative pricing more than offset the volume declines in each of these two service offerings and comparative volumes increased across all remaining business lines. Fuel surcharges remained flat comparatively, while "tuck-in" acquisitions contributed to the balance of gross revenue growth in the U.S. northeast.
Year ended
The increase in Canadian segment gross revenues is attributable to organic
and other "tuck-in" acquisition growth. Similar to the three months ended, higher
organic gross revenue growth delivered by our existing Canadian operations was
partially offset by a lower comparable performance from WSI's Canadian operations.
On a comparable basis, year-to-date pricing was up across all service lines,
excluding residential. The decline in residential pricing was due largely to
a contract win which commenced
On a year-to-date basis, U.S. south segment gross revenues increased on the back of strong pricing growth which grew across all service lines. All of our U.S. south service lines also delivered comparative volume growth. Other "tuck-in" acquisitions and fuel surcharges also contributed to gross revenue growth year over year.
On a year-to-date basis, gross revenue growth in our U.S. northeast segment benefited from stronger year over year pricing. Landfill pricing was the only service line that experienced a year-to-date decline. Attracting volumes at our landfills in combination with the mix of waste materials received is the primary cause for the pricing decline. The return of commodity pricing delivered a strong contribution to year-to-date gross revenue growth as did an increase in the volume of materials processed. Volume growth was most pronounced in our landfill and industrial service lines, but was partially offset by declines in all other service offerings. Acquisitions and marginally higher fuel prices also contributed to year-to-date gross revenue growth.
Operating expenses
Three months ended
The comparative increase is due to FX, our acquisition of WSI, other "tuck-in"
acquisitions, and higher collected waste volumes in our pre-existing base business.
In total, higher disposal, labour and vehicle operating and maintenance expenses,
account for the largest components of the comparative increase. In addition,
higher subcontract costs, insurance and higher commodity rebates, due to higher
comparative commodity pricing, are the largest contributors to the balance of
the period to period increase. The increase in commodity rebates was most notable
in the U.S. northeast and
Year ended
The comparative year to date increase is consistent with the reasons outlined above for the three months ended. At 58.7%, current year operating expenses as a percentage of reportable revenues is consistent with the 58.3% achieved in the prior year. We continue to integrate WSI with our existing operations with the goal of improving our operating effectiveness. We are satisfied that we are realizing the synergies we expected from the acquisition of WSI.
SG&A expenses
Three months ended
Excluding the impact of FX, the increase in SG&A expense is due to the acquisition of WSI, other "tuck-in" acquisitions and organic growth. The increase is primarily attributable to higher salaries, facility and other SG&A costs, which are due in large part to our acquisition of WSI and other "tuck-in" acquisitions.
Corporate SG&A includes certain executive costs, accounting, internal audit, treasury, investor relations, corporate development, environmental management, information technology, human resources and other administrative support functions. Corporate SG&A also includes transaction and related costs and fair value changes to stock options. While we experienced an increase in corporate SG&A costs resulting from our acquisition of WSI, due largely to higher salaries and facility and office costs, and higher fair value changes in stock options, the comparative decline in transaction and related costs, corporate reorganization costs, coupled with the recovery of professional fees incurred in our defense of an anti-trust lawsuit, more than offset these increases. As a percentage of reportable revenues, SG&A expense, expressed on an adjusted basis, declined comparably. Rationalizing personnel and operating locations, resulting principally from the acquisition of WSI, is the primary reason for the comparative improvement. We continue to integrate WSI with our existing operations with the goal of reducing SG&A expense. We are satisfied that we are realizing the synergies we expected from the acquisition of WSI and we expect to realize additional synergies in the coming year.
Year ended
As outlined above for the three months ended, the increase in SG&A expense is due to the acquisition of WSI, other "tuck-in" acquisitions, organic growth and FX. The increase is primarily attributable to salaries, which is due in part to fair value changes in stock options. Facility and other SG&A cost increases also contributed to the year over year increase, partially offset by lower fourth quarter corporate reorganization costs and the recovery of certain professional fees.
Free cash flow(B)
Purpose and objective
The purpose of presenting this non-GAAP measure is to align our disclosure with other U.S. publicly listed companies, in our industry, and to provide investors and analysts an additional measure of our value and liquidity. We use this non-GAAP measure to assess our performance relative to other U.S. publicly listed companies and to assess the availability of funds for growth investment and debt repayment.
In 2009, our calculation of free cash flow(B) did not deduct for acquisition and related costs or non-recurring costs. Accordingly, comparative free cash flow(B) amounts have been adjusted to conform to the current period or year's presentation.
Free cash flow(B) - cash flow approach
Three months ended Year ended
December 31 December 31
----------------------------------------------------------------------------
2010 2009 Change 2010 2009 Change
----------------------------------------------------------------------------
Cash generated
from
operating
activities
(from
statement of
cash flows) $120,667 $ 63,620 $ 57,047 $ 293,861 $ 256,269 $ 37,592
----------------------------------------------------------------------------
Operating and
investing
Reorganization
costs (non-
recurring
capital tax) - 1,315 (1,315) - 1,315 (1,315)
Stock option
expense 2,166 1,006 1,160 8,336 2,006 6,330
Acquisition
and related
costs 2,389 - 2,389 8,563 - 8,563
Restructuring
expenses 1,388 3,612 (2,224) 5,180 3,612 1,568
Conversion
costs - 90 (90) - 298 (298)
Other expenses 2,566 53 2,513 3,210 162 3,048
Changes in
non-cash
working
capital items (29,155) (11,828) (17,327) 14,612 (27,304) 41,916
Capital and
landfill
asset
purchases (58,030) (34,401) (23,629) (142,641) (122,276) (20,365)
Financing
Interest on
long-term
debt - high
yield
defeasance
interest - - - 1,663 - 1,663
Financing and
landfill
development
costs (net of
non-cash
portion) - - - (290) (77) (213)
Purchase of
restricted
shares - - - (1,241) (172) (1,069)
Net realized
foreign
exchange loss 33 38 (5) 47 276 (229)
----------------------------------------------------------------------------
Free cash
flow(B) $ 42,024 $ 23,505 $ 18,519 $ 191,300 $ 114,109 $ 77,191
----------------------------------------------------------------------------
Free cash flow(B) - adjusted EBITDA(A) approach
Three months ended Year ended
December 31 December 31
----------------------------------------------------------------------------
2010 2009 Change 2010 2009 Change
----------------------------------------------------------------------------
Adjusted
EBITDA(A) $122,987 $ 75,363 $ 47,624 $ 413,826 $ 290,449 $123,377
----------------------------------------------------------------------------
Restricted
share expense 579 404 175 1,977 1,485 492
Purchase of
restricted
shares - - - (1,241) (172) (1,069)
Capital and
landfill
asset
purchases (58,030) (34,401) (23,629) (142,641) (122,276) (20,365)
Landfill
closure and
post-closure
expenditures (2,588) (2,181) (407) (5,749) (7,145) 1,396
Landfill
closure and
post-closure
cost
accretion
expense 1,035 808 227 3,827 3,130 697
Interest on
long-term
debt (14,822) (7,979) (6,843) (48,786) (34,225) (14,561)
Interest on
long-term
debt - high
yield
defeasance
interest - - - 1,663 - 1,663
Non-cash
interest
expense 1,262 681 581 4,672 2,902 1,770
Current income
tax expense (8,399) (9,190) 791 (36,248) (20,039) (16,209)
----------------------------------------------------------------------------
Free cash
flow(B) $ 42,024 $ 23,505 $ 18,519 $ 191,300 $ 114,109 $ 77,191
----------------------------------------------------------------------------
Three months ended
Free cash flow(B) increased over the comparative year ago period. The acquisition
of WSI contributed to the growth in free cash flow(B) and adjusted EBITDA(A)
that we enjoyed comparatively, as did FX. In addition, we realized significant
improvements to free cash flow(B) and adjusted EBITDA(A) resulting from strong
organic growth and other "tuck-in" acquisitions. Higher debt levels resulting
from the acquisition of WSI and higher interest rates in
Year ended
For the year ended, free cash flow(B) increased. The WSI acquisition, other "tuck-in" acquisitions, organic growth and FX all contributed to the increase in free cash flow(B). Strong revenue growth contributed to the increase in adjusted EBITDA(A), which was partially offset by higher interest expense and higher current income tax expense. The reasons for these changes are largely consistent with those outlined above for the three months ended.
Capital and landfill purchases
Capital and landfill purchases characterized as replacement and growth expenditures are as follows:
Three months ended December 31 Year ended December 31
----------------------------------------------------------------------------
2010 2009 Change 2010 2009 Change
----------------------------------------------------------------------------
Replacement $ 43,419 $ 24,580 $ 18,839 $100,578 $ 73,674 $ 26,904
Growth 14,611 9,821 4,790 42,063 48,602 (6,539)
----------------------------------------------------------------------------
Total $ 58,030 $ 34,401 $ 23,629 $142,641 $122,276 $ 20,365
----------------------------------------------------------------------------
Capital and landfill purchases - replacement
Capital and landfill purchases characterized as "replacement" expenditures represent cash outlays to sustain current cash flows and are funded from free cash flow(B). Replacement expenditures include the replacement of existing capital assets and all construction spending at our landfills.
Three months ended
Excluding the impact of FX, replacement expenditures increased. The increase is principally attributable to the Canadian business. Replacement land and building expenditures resulting from the integration of certain locations coupled with higher comparative vehicle spending due to the timing of spend and replacement of ageing WSI acquired equipment are the primary reasons for the increase. U.S. replacement expenditures also increased, due largely to the WSI acquisition and comparative differences in the timing of spending.
Year ended
The reasons for the increase in year-to-date replacement spending are consistent with those outlined above for the three months ended.
Capital and landfill purchases - growth
Capital and landfill purchases characterized as "growth" expenditures represent cash outlays to generate new or future cash flows and are generally funded from free cash flow(B). Growth expenditures include capital assets, including facilities (new or expansion), to support new contract wins and organic business growth.
Three months ended
Excluding the impact of FX, growth expenditures increased. The increase is solely attributable to our U.S. segment as our Canadian business saw a comparative quarterly decline. The Canadian segment decline is the result of lower comparable vehicle purchases resulting from the timing of contract wins. The U.S. segment increase is due in large part to infrastructure spending, namely buildings and land.
Year ended
Fewer comparative contract wins, most notably in our U.S. business, is the primary reason for the decline in year-to-date growth expenditures.
Readers are reminded that revenue, adjusted EBITDA(A), and cash flow contributions realized from growth expenditures will materialize over future periods.
Long-term debt
(all amounts are in thousands of U.S. dollars, unless otherwise stated)
Summary details of our long-term debt facilities at
Letters of
credit (not
reported as
long-term debt
on the
Available Facility Consolidated Available
lending drawn Balance Sheet) capacity
----------------------------------------------------------------------------
Canadian long-
term debt
facilities -
stated in
Canadian
dollars
Senior secured
debenture,
series B $ 58,000 $ 58,000 $ - $ -
Revolving credit
facility $ 525,000 $ 325,000 $ 53,355 $ 146,645
U.S. long-term
debt facilities
- stated in
U.S. dollars
Revolving credit
facility $ 950,000 $ 761,000 $ 139,901 $ 49,099
Variable rate
demand solid
waste disposal
revenue bonds
("IRBs")(1) $ 194,000 $ 109,000 $ - $ 85,000
Other $ 4,580 $ 4,580 $ - $ -
Note:
(1) Drawings on IRB availability at floating rates of interest, will, under
the terms of the underlying agreement, typically be used to repay
revolving credit advances on our U.S. facility. IRB drawings at floating
rates of interest, requires us to issue letters of credit for an amount
equal to the IRB amounts drawn.
Funded debt to EBITDA (as defined and calculated in accordance with our Canadian and U.S. long-term debt facilities)
At
December 31, 2010 December 31, 2009
----------------------------------------------------------------------------
Canada U.S. Canada U.S.
----------------------------------------------------------------------------
Funded debt to EBITDA 1.91 3.19 1.92 2.56
Funded debt to EBITDA maximum 3.00 4.00 2.75 4.00
Changes to long-term debt occurring in conjunction with the WSI acquisition
Closing Agreements
On
On
Canadian facility
On
Pricing on advances drawn under the facility increased by 125 basis points when our funded debt to EBITDA ratio is in excess of 2.0 times, and by 100 basis points when our funded debt to EBITDA ratio is below 2.0 times. The Canadian facility also introduced new pricing layers for funded debt to EBITDA positions below 1.0 times and in excess of 2.5 times. Pricing ranges from 112.5 to 237.5 basis points over bank prime for borrowings on prime and 212.5 to 337.5 basis points over bankers' acceptances ("BAs") for borrowings on BAs. Pricing on financial letters of credit increased by similar amounts and pricing ranges from 212.5 basis points to 337.5 basis points. Standby fees increased by 32.5 basis points, and range from 55 to 85 basis points, while non-financial letters of credit increased by approximately 82.5 basis points.
Security under the Canadian facility remained largely unchanged from the previous facility, and represents a first priority perfected security interest over all personal and real property of the Canadian operating companies and a pledge of the Canadian operating entities equity held by the Canadian parent.
On
On
Canadian Trust Indenture
On
U.S. facility
On
Pricing on advances drawn increased comparatively by 125 basis points for LIBOR rate advances at all pricing levels and by 150 to 200 basis points for bank prime advances. Pricing ranges from 250 to 325 basis points over LIBOR for borrowings on LIBOR and 150 to 225 basis points over bank prime for prime rate advances and interest is payable quarterly in arrears. Pricing on financial letters of credit increased by similar amounts and pricing ranges from 212.5 basis points to 337.5 basis points. Standby fees were largely unchanged and range from 37.5 to 62.5 basis points, while letters of credit increased by approximately 125 basis points.
Security under the U.S. facility remained relatively unchanged from the previous facility, and represents a first priority perfected security interest over all personal and real property of the U.S. operating companies and a pledge of the U.S. operating entities equity held by the U.S. parent.
On
In
On
Other
In connection with the WSI acquisition, we assumed various notes which included
a secured note that was originally payable to
In addition, we assumed a note payable with an original issue date of
We also assumed a note payable under a financing arrangement for a piece of
equipment purchased in 2006. At closing, the total remaining payments under
this note amounted to
Long-term debt to pro forma adjusted EBITDA(A)
On the closing of the WSI acquisition, and including other completed acquisitions, our pro forma adjusted EBITDA(A) ratio prepared on a combined basis, assuming FX parity, is approximately 2.5 times.
Definitions of Adjusted EBITDA and Free cash flow
(A) All references to "Adjusted EBITDA" in this press release are to revenues less operating expense and SG&A reported on the consolidated statement of operations and comprehensive income and further exclude certain non-operating or non-recurring SG&A expenses. Adjusted EBITDA excludes some or all of the following: "certain SG&A expenses, restructuring expenses, amortization, net gain or loss on sale of capital and landfill assets, interest on long-term debt, net foreign exchange gain or loss, net gain or loss on financial instruments, conversion costs, other expenses, income taxes and net income or loss from equity accounted investee". Adjusted EBITDA is a term used by us that does not have a standardized meaning prescribed by U.S. GAAP and is therefore unlikely to be comparable to similar measures used by other issuers. Adjusted EBITDA is a measure of our operating profitability, and by definition, excludes certain items as detailed above. These items are viewed by us as either non-cash (in the case of amortization, net gain or loss on financial instruments, net foreign exchange gain or loss, deferred income taxes and net income or loss from equity accounted for investee) or non-operating (in the case of certain SG&A expenses, restructuring expenses, net gain or loss on sale of capital and landfill assets, interest on long-term debt, conversion costs, other expenses, and current income taxes). Adjusted EBITDA is a useful financial and operating metric for us, our Board of Directors, and our lenders, as it represents a starting point in the determination of free cash flow(B). The underlying reasons for the exclusion of each item are as follows:
Certain SG&A expenses - SG&A expense includes certain and non-recurring, expenses. These expenses include transaction costs related to acquisitions, fair value adjustments attributable to stock options and corporate reorganization expense. These expenses are not considered an expense indicative of continuing operations. Certain SG&A costs represent a different class of expense than those included in adjusted EBITDA.
Restructuring expenses - restructuring expenses includes costs to integrate various operating locations with our own, exiting certain property and building and office leases, employee severance and employee relocation costs incurred in connection with our acquisition of WSI. These expenses are not considered an expense indicative of continuing operations. Accordingly, restructuring expenses represent a different class of expense than those included in adjusted EBITDA.
Amortization - as a non-cash item amortization has no impact on the determination of free cash flow(B).
Net gain or loss on sale of capital and landfill assets - proceeds from the sale of capital and landfill assets are either reinvested in additional or replacement capital or landfill assets or used to repay revolving credit facility borrowings.
Interest on long-term debt - interest on long-term debt is a function of our debt/equity mix and interest rates; as such, it reflects our treasury/financing activities and represents a different class of expense than those included in adjusted EBITDA.
Net foreign exchange gain or loss - as non-cash items, foreign exchange gains or losses have no impact on the determination of free cash flow(B).
Net gain or loss on financial instruments - as non-cash items, gains or losses on financial instruments have no impact on the determination of free cash flow(B).
Conversion costs - conversion costs represent professional fees incurred on the Fund's conversion from an income trust to a corporation and its eventual wind-up. These expenses are not considered an expense indicative of continuing operations. Conversion costs represent a different class of expense than those included in adjusted EBITDA.
Other expenses - other expenses typically represent amounts paid to certain management of acquired companies who are retained by us post acquisition and amounts paid to certain executives in respect of acquisitions successfully completed. These expenses are not considered an expense indicative of continuing operations. Accordingly, other expenses represent a different class of expense than those included in adjusted EBITDA.
Income taxes - income taxes are a function of tax laws and rates and are affected by matters which are separate from our daily operations.
Net income or loss from equity accounted investee - as a non-cash item, net income or loss from our equity accounted investee has no impact on the determination of free cash flow(B).
Adjusted EBITDA should not be construed as a measure of income or of cash flows. The reconciling items between adjusted EBITDA and net income are detailed in the consolidated statement of operations and comprehensive income or loss beginning with operating income before restructuring expenses, amortization and net gain or loss on sale of capital and landfill assets and ending with net income and includes certain adjustments for expenses recorded to SG&A which management views as not indicative of continuing operations. A reconciliation between operating income and adjusted EBITDA is provided below. Adjusted operating income and adjusted net income are also presented below.
Three months ended
December 31 Year ended December 31
----------------------------------------------------------------------------
2010 2009 2010 2009
----------------------------------------------------------------------------
Operating income $ 54,814 $ 33,500 $ 184,495 $ 127,012
Transaction and
related costs - SG&A 2,389 3,612 8,563 3,612
Fair value movements
in stock options -
SG&A 2,166 1,006 8,336 2,006
Corporate
reorganization
expense - SG&A - 1,315 - 1,315
Restructuring
expenses 1,388 - 5,180 -
----------------------------------------------------------------------------
Adjusted operating
income 60,757 39,433 206,574 133,945
----------------------------------------------------------------------------
Net gain or loss on
sale of capital and
landfill assets (33) (70) (414) (198)
Amortization 62,263 36,000 207,666 156,702
----------------------------------------------------------------------------
Adjusted EBITDA $ 122,987 $ 75,363 $ 413,826 $ 290,449
----------------------------------------------------------------------------
Net income $ 21,683 $ 9,875 $ 82,169 $ 53,728
Transaction and
related costs - SG&A 2,389 3,612 8,563 3,612
Fair value movements
in stock options -
SG&A 2,166 1,006 8,336 2,006
Corporate
reorganization
expense - SG&A - 1,315 - 1,315
Restructuring
expenses 1,388 - 5,180 -
Interest on long-term
debt - - 2,409 -
Net gain or loss on
financial
instruments (2,245) (696) (5,493) (1,562)
Conversion costs - 90 - 298
Other expenses 2,566 53 3,210 162
Net income tax
expense or recovery (1,129) (216) (3,398) 32
----------------------------------------------------------------------------
Adjusted net income $ 26,818 $ 15,039 $ 100,976 $ 59,591
----------------------------------------------------------------------------
(B) We have adopted a measure called "free cash flow" to supplement net income or loss as a measure of operating performance. Free cash flow is a term which does not have a standardized meaning prescribed by U.S. GAAP, is prepared before dividends declared, and is therefore unlikely to be comparable to similar measures used by other issuers. The objective of presenting this non-GAAP measure, however, is to provide similar disclosures to other U.S. publicly listed companies in the waste industry. We use this non-GAAP measure to assess our performance relative to other publically listed companies and to assess the availability of funds for growth investment and debt repayment. All references to "free cash flow" in this press release have the meaning set out in this note.
Forward-Looking Statements
This communication includes "forward-looking statements" within the meaning
of the safe harbor provisions of the United States Private Securities Litigation
Reform Act of 1995 and applicable Canadian securities legislation. Words such
as "expect," "estimate," "project," "budget," "forecast," "anticipate," "intend,"
"plan," "may," "will," "could," "should," "believes," "predicts," "potential,"
"continue," and similar expressions are intended to identify such forward-looking
statements. These forward-looking statements may include, without limitation,
These forward-looking statements involve significant risks and uncertainties
that could cause actual results to differ materially from the expected results.
Most of these factors are outside our control and difficult to predict. The
following factors, among others, could cause or contribute to such material
differences: the ability to realize the expected synergies resulting from the
WSI acquisition in the amounts or in the timeframe anticipated; and the ability
to integrate WSI's businesses into those of
About
To find out more about
Management will hold a conference call on
A replay will be available after the call until
For more information, contact:
Director, Investor Relations and Corporate Communications
(905) 532-7517
chaya.cooperberg@bficanada.com.
www.iesi-bfc.com.
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