Date: July 26, 2011
Source: Progressive Waste Solutions Ltd.
(All amounts are in thousands of
Management Commentary
Reported revenues increased
Revenue growth translated into 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 second quarter of 2011 was
Free cash flow(B) for the quarter totalled
"We had a solid performance in the second quarter, with strong organic growth
rates for our base business helping us achieve revenues in line with our expectations,
despite the headwinds of weather in our Canadian segment and a delay in realizing
some efficiencies related to the consolidation of certain
For the six months ended
For the six months ended
Financial and Other Highlights
For the Three Months Ended
-- Revenues increased$169.9 million or 56.7% ($158.5 million or 52.9%, excluding foreign currency exchange ("FX")) -- Adjusted EBITDA(A) increased$47.7 million or 53.8% ($43.9 million or 49.5%, excluding FX) -- Adjusted EBITDA(A) margin, on a reported basis, was 29.0% or 29.4% excluding the incremental increase in fuel surcharges -- Free cash flow(B) increased$20.6 million or 46.7% ($18.7 million or 42.3%, excluding FX) -- Free cash flow(B) margin of 13.8% -- Adjusted net income(A) per diluted share,$0.28 -- Consolidated total price increased 3.1%, on a comparable basis, as defined on page 9 -- Consolidated volumes increased 0.3%, on a comparable basis
For the Six Months Ended
-- Revenues increased$328.7 million or 58.3% ($308.3 million or 54.7%, excluding FX) -- Adjusted EBITDA(A) increased$94.8 million or 57.6% ($88.0 million or 53.5%, excluding FX) -- Adjusted EBITDA(A) margin, on a reported basis, was 29.1% or 29.4% excluding the incremental increase in fuel surcharges -- Free cash flow(B) increased$49.3 million or 57.3% ($45.9 million or 53.4%, excluding FX) -- Free cash flow(B) margin of 15.2% -- Adjusted net income(A) per diluted share,$0.51 -- Consolidated total price increased 3.2%, on a comparable basis -- Consolidated volumes increased 0.4%, on a comparable basis
Other Highlights for the Three and Six Months Ended
-- Successful secondary offering of approximately 10.9 million common
shares held by TC Carting III, L.L.C. , an affiliate of Thayer I Hidden
Creek Partners, L.L.C.
-- Repurchase of one million common shares from the underwriters in the
secondary offering, at the public offering price of $23.50 per share.
Acquisition of WSI
On
Quarterly Dividend Declared
The Company's Board of Directors declared a quarterly dividend of
Financial Highlights
(in thousands of U.S. dollars, except per weighted average share amounts, unless otherwise stated)
Three months ended June Six months ended June
30 30
----------------------------------------------------------------------------
2011 2010 2011 2010
----------------------------------------------------------------------------
(unaudited) (unaudited) (unaudited) (unaudited)
----------------------------------------------------------------------------
Operating results
Revenues $ 469,512 $ 299,582 $ 892,362 $ 563,624
Operating expenses 279,504 174,568 526,309 325,637
Selling, general and
administration ("SG&A") 50,378 41,187 108,985 80,978
Restructuring expenses 278 - 1,125 -
Amortization 66,467 43,096 129,286 82,613
Net gain on sale of
capital assets (356) (369) (1,779) (431)
----------------------------------------------------------------------------
Operating income 73,241 41,100 128,436 74,827
Interest on long-term
debt 16,542 8,244 33,060 16,181
Net foreign exchange
(gain) loss (29) 24 (32) 54
Net gain on financial
instruments (429) (1,208) (2,355) (1,750)
Other expenses 609 34 795 58
----------------------------------------------------------------------------
Income before net income
tax expense and net
loss from equity
accounted investee 56,548 34,006 96,968 60,284
Net income tax expense 19,919 14,150 37,237 23,693
Net loss from equity
accounted investee 22 21 26 46
----------------------------------------------------------------------------
Net income $ 36,607 $ 19,835 $ 59,705 $ 36,545
----------------------------------------------------------------------------
Net income per weighted
average share, basic $ 0.30 $ 0.21 $ 0.49 $ 0.39
Net income per weighted
average share, diluted $ 0.30 $ 0.21 $ 0.49 $ 0.39
Weighted average number
of shares outstanding
(thousands), basic 120,748 82,383 121,220 82,363
Weighted average number
of shares outstanding
(thousands), diluted 120,748 93,431 121,220 93,431
Adjusted EBITDA(A) $ 136,264 $ 88,598 $ 259,361 $ 164,539
Adjusted operating
income(A) $ 70,153 $ 45,871 $ 131,854 $ 82,357
Adjusted net
income(A)(1) $ 33,540 $ 23,364 $ 61,639 $ 42,048
Adjusted net income(A)
per weighted average
share, basic $ 0.28 $ 0.25 $ 0.51 $ 0.45
Adjusted net income(A)
per weighted average
share, diluted $ 0.28 $ 0.25 $ 0.51 $ 0.45
Replacement and growth
expenditures (see page
14)
Replacement expenditures $ 33,019 $ 19,943 $ 51,061 $ 31,842
Growth expenditures 11,388 8,578 18,755 16,762
----------------------------------------------------------------------------
Total replacement and
growth expenditures $ 44,407 $ 28,521 $ 69,816 $ 48,604
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Free cash flow(B)
Cash generated from
operating activities
(condensed consolidated
statement of cash
flows) $ 92,632 $ 81,196 $ 147,286 $ 125,236
Free cash flow(B) $ 64,776 $ 44,166 $ 135,343 $ 86,026
Free cash flow(B) per
weighted average share,
diluted $ 0.54 $ 0.47 $ 1.12 $ 0.92
Dividends
Dividends declared
(common shares) $ 15,605 $ 10,014 $ 30,910 $ 19,907
Dividends declared
(participating
preferred shares
("PPSs")) - 1,350 - 2,677
----------------------------------------------------------------------------
Total dividends declared $ 15,605 $ 11,364 $ 30,910 $ 22,584
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Note:
(1) Prior period amounts have been adjusted to reflect the current period's
presentation.
2011 2010
----------------------------------------------------------------------------
Condensed Condensed
Consolidated Consolidated
Condensed Statement of Condensed Statement of
Consolidated Operations and Consolidated Operations and
Balance Comprehensive Balance Comprehensive
Sheet Income Sheet Income
----------------------------------------------------------------------------
Cumulative Cumulative
Current Average Average Current Average Average
----------------------------------------------------------------------------
December
31 $ 1.0054 $ 0.9708
March 31 $ 1.0290 $ 1.0142 $ 1.0142 $ 0.9846 $ 0.9607 $ 0.9607
June 30 $ 1.0370 $ 1.0334 $ 1.0237 $ 0.9429 $ 0.9731 $ 0.9669
FX Impact on Consolidated Results
The following tables have been prepared to assist readers in assessing the
impact of FX on selected results for the three and six months ended
Three months ended
----------------------------------------------------------------------------
June 30, June 30, June 30, June 30, June 30,
2010 2011 2011 2011 2011
----------------------------------------------------------------------------
(unaudited) (unaudited) (unaudited) (unaudited) (unaudited)
----------------------------------------------------------------------------
(organic, (holding FX
acquisition constant
and other with the
(as non-operating comparative (as
reported) changes) period) (FX impact) reported)
----------------------------------------------------------------------------
Condensed Consolidated Statement of Operations
Revenues $ 299,582 $ 158,521 $ 458,103 $ 11,409 $ 469,512
Operating
expenses 174,568 98,632 273,200 6,304 279,504
SG&A 41,187 8,050 49,237 1,141 50,378
Restructuring
expenses - 261 261 17 278
Amortization 43,096 21,861 64,957 1,510 66,467
Net gain
on sale
of
capital
assets (369) 17 (352) (4) (356)
----------------------------------------------------------------------------
Operating
income 41,100 29,700 70,800 2,441 73,241
Interest
on long-
term debt 8,244 7,988 16,232 310 16,542
Net
foreign
exchange
loss
(gain) 24 (54) (30) 1 (29)
Net gain
on
financial
instruments (1,208) 746 (462) 33 (429)
Other
expenses 34 540 574 35 609
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Income
before
net
income
tax
expense
and net
loss from
equity
accounted
investee 34,006 20,480 54,486 2,062 56,548
Net income
tax
expense 14,150 5,230 19,380 539 19,919
Net loss
from
equity
accounted
investee 21 (1) 20 2 22
----------------------------------------------------------------------------
Net income $ 19,835 $ 15,251 $ 35,086 $ 1,521 $ 36,607
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Adjusted
EBITDA(A) $ 88,598 $ 43,880 $ 132,478 $ 3,786 $ 136,264
Adjusted
operating
income(A) $ 45,871 $ 22,003 $ 67,874 $ 2,279 $ 70,153
Adjusted
net
income(A)
(1) $ 23,364 $ 8,775 $ 32,139 $ 1,401 $ 33,540
Free cash
flow(B) $ 44,166 $ 18,697 $ 62,863 $ 1,913 $ 64,776
Note:
(1) Prior period amounts have been adjusted to reflect the current period's
presentation.
Six months ended
----------------------------------------------------------------------------
June June June June June
30, 2010 30, 2011 30, 2011 30, 2011 30, 2011
----------------------------------------------------------------------------
(unaudited) (unaudited) (unaudited) (unaudited) (unaudited)
----------------------------------------------------------------------------
(organic, (holding FX
acquisition constant
and other with
non- the
(as operating comparative (as
reported) changes) period) (FX impact) reported)
----------------------------------------------------------------------------
Condensed Consolidated Statement of Operations
Revenues $ 563,624 $ 308,258 $ 871,882 $ 20,480 $ 892,362
Operating
expenses 325,637 189,481 515,118 11,191 526,309
SG&A 80,978 25,397 106,375 2,610 108,985
Restructuring
expenses - 1,063 1,063 62 1,125
Amortization 82,613 43,885 126,498 2,788 129,286
Net gain
on sale
of
capital
assets (431) (1,339) (1,770) (9) (1,779)
----------------------------------------------------------------------------
Operating
income 74,827 49,771 124,598 3,838 128,436
Interest
on long-
term debt 16,181 16,297 32,478 582 33,060
Net
foreign
exchange
loss
(gain) 54 (88) (34) 2 (32)
Net gain
on
financial
instruments (1,750) (604) (2,354) (1) (2,355)
Other
expenses 58 694 752 43 795
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Income
before
net
income
tax
expense
and net
loss from
equity
accounted
investee 60,284 33,472 93,756 3,212 96,968
Net income
tax
expense 23,693 12,595 36,288 949 37,237
Net loss
from
equity
accounted
investee 46 (22) 24 2 26
----------------------------------------------------------------------------
Net income $ 36,545 $ 20,899 $ 57,444 $ 2,261 $ 59,705
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Adjusted
EBITDA(A) $ 164,539 $ 88,037 $ 252,576 $ 6,785 $ 259,361
Adjusted
operating
income(A) $ 82,357 $ 45,492 $ 127,849 $ 4,005 $ 131,854
Adjusted
net
income(A)
(1) $ 42,048 $ 17,153 $ 59,201 $ 2,438 $ 61,639
Free cash
flow(B) $ 86,026 $ 45,902 $ 131,928 $ 3,415 $ 135,343
Note:
(1) Prior period amounts have been adjusted to reflect the current period's
presentation.
Management's Discussion
(all amounts are in thousands of U.S. dollars, unless otherwise stated)
Segment Highlights - expressed on a reportable basis, which excludes the acquisition of WSI on prior period amounts
Three months ended June 30
----------------------------------------------------------------------------
2010 2011 Change 2011 Change
----------------------------------------------------------------------------
(2011
holding FX
constant
(holding FX with the
constant with comparative (2011 as
the period less reported
(as comparative 2010 as (as less 2010 as
reported) period) reported) reported) reported)
----------------------------------------------------------------------------
Revenues $ 299,582 $ 458,103 $ 158,521 $ 469,512 $ 169,930
----------------------------------------------------------------------------
Canada $ 117,697 $ 185,325 $ 67,628 $ 196,734 $ 79,037
U.S. south $ 93,406 $ 179,177 $ 85,771 $ 179,177 $ 85,771
U.S.
northeast $ 88,479 $ 93,601 $ 5,122 $ 93,601 $ 5,122
Operating
expenses $ 174,568 $ 273,200 $ 98,632 $ 279,504 $ 104,936
----------------------------------------------------------------------------
Canada $ 61,339 $ 102,519 $ 41,180 $ 108,823 $ 47,484
U.S. south $ 57,325 $ 108,828 $ 51,503 $ 108,828 $ 51,503
U.S.
northeast $ 55,904 $ 61,853 $ 5,949 $ 61,853 $ 5,949
SG&A (as
reported) $ 41,187 $ 49,237 $ 8,050 $ 50,378 $ 9,191
----------------------------------------------------------------------------
Canada $ 10,137 $ 14,716 $ 4,579 $ 15,649 $ 5,512
U.S. south $ 10,030 $ 17,687 $ 7,657 $ 17,687 $ 7,657
U.S.
northeast $ 7,109 $ 7,614 $ 505 $ 7,614 $ 505
Corporate $ 13,911 $ 9,220 $ (4,691) $ 9,428 $ (4,483)
EBITDA(A)
(as
reported) $ 83,827 $ 135,666 $ 51,839 $ 139,630 $ 55,803
----------------------------------------------------------------------------
Canada $ 46,221 $ 68,090 $ 21,869 $ 72,262 $ 26,041
U.S. south $ 26,051 $ 52,662 $ 26,611 $ 52,662 $ 26,611
U.S.
northeast $ 25,466 $ 24,134 $ (1,332) $ 24,134 $ (1,332)
Corporate $ (13,911) $ (9,220) $ 4,691 $ (9,428) $ 4,483
Adjusted
SG&A $ 36,416 $ 52,425 $ 16,009 $ 53,744 $ 17,328
----------------------------------------------------------------------------
Canada $ 10,137 $ 14,716 $ 4,579 $ 15,649 $ 5,512
U.S. south $ 10,030 $ 17,687 $ 7,657 $ 17,687 $ 7,657
U.S.
northeast $ 7,109 $ 7,614 $ 505 $ 7,614 $ 505
Corporate $ 9,140 $ 12,408 $ 3,268 $ 12,794 $ 3,654
Adjusted
EBITDA(A) $ 88,598 $ 132,478 $ 43,880 $ 136,264 $ 47,666
----------------------------------------------------------------------------
Canada $ 46,221 $ 68,090 $ 21,869 $ 72,262 $ 26,041
U.S. south $ 26,051 $ 52,662 $ 26,611 $ 52,662 $ 26,611
U.S.
northeast $ 25,466 $ 24,134 $ (1,332) $ 24,134 $ (1,332)
Corporate $ (9,140) $ (12,408) $ (3,268) $ (12,794) $ (3,654)
Six months ended June 30
----------------------------------------------------------------------------
2010 2011 Change 2011 Change
----------------------------------------------------------------------------
(2011
holding FX
constant
(holding FX with the
constant with comparative (2011 as
the period less reported
(as comparative 2010 as (as less 2010 as
reported) period) reported) reported) reported)
----------------------------------------------------------------------------
Revenues $ 563,624 $ 871,882 $ 308,258 $ 892,362 $ 328,738
----------------------------------------------------------------------------
Canada $ 217,792 $ 348,174 $ 130,382 $ 368,654 $ 150,862
U.S. south $ 181,206 $ 347,352 $ 166,146 $ 347,352 $ 166,146
U.S.
northeast $ 164,626 $ 176,356 $ 11,730 $ 176,356 $ 11,730
Operating
expenses $ 325,637 $ 515,118 $ 189,481 $ 526,309 $ 200,672
----------------------------------------------------------------------------
Canada $ 111,634 $ 190,261 $ 78,627 $ 201,452 $ 89,818
U.S. south $ 110,392 $ 209,110 $ 98,718 $ 209,110 $ 98,718
U.S.
northeast $ 103,611 $ 115,747 $ 12,136 $ 115,747 $ 12,136
SG&A (as
reported) $ 80,978 $ 106,375 $ 25,397 $ 108,985 $ 28,007
----------------------------------------------------------------------------
Canada $ 19,555 $ 29,497 $ 9,942 $ 31,233 $ 11,678
U.S. south $ 19,869 $ 34,470 $ 14,601 $ 34,470 $ 14,601
U.S.
northeast $ 14,863 $ 15,761 $ 898 $ 15,761 $ 898
Corporate $ 26,691 $ 26,647 $ (44) $ 27,521 $ 830
EBITDA(A)
(as
reported) $ 157,009 $ 250,389 $ 93,380 $ 257,068 $ 100,059
----------------------------------------------------------------------------
Canada $ 86,603 $ 128,416 $ 41,813 $ 135,969 $ 49,366
U.S. south $ 50,945 $ 103,772 $ 52,827 $ 103,772 $ 52,827
U.S.
northeast $ 46,152 $ 44,848 $ (1,304) $ 44,848 $ (1,304)
Corporate $ (26,691) $ (26,647) $ 44 $ (27,521) $ (830)
Adjusted
SG&A $ 73,448 $ 104,188 $ 30,740 $ 106,692 $ 33,244
----------------------------------------------------------------------------
Canada $ 19,555 $ 29,497 $ 9,942 $ 31,233 $ 11,678
U.S. south $ 19,869 $ 34,470 $ 14,601 $ 34,470 $ 14,601
U.S.
northeast $ 14,863 $ 15,761 $ 898 $ 15,761 $ 898
Corporate $ 19,161 $ 24,460 $ 5,299 $ 25,228 $ 6,067
Adjusted
EBITDA(A) $ 164,539 $ 252,576 $ 88,037 $ 259,361 $ 94,822
----------------------------------------------------------------------------
Canada $ 86,603 $ 128,416 $ 41,813 $ 135,969 $ 49,366
U.S. south $ 50,945 $ 103,772 $ 52,827 $ 103,772 $ 52,827
U.S.
northeast $ 46,152 $ 44,848 $ (1,304) $ 44,848 $ (1,304)
Corporate $ (19,161) $ (24,460) $ (5,299) $ (25,228) $ (6,067)
Revenues
Gross revenue by service type
(prepared on a reportable basis, which excludes WSI's operations in the previously comparable quarter and year-to-date period)
The following tables compare gross revenues, which include intercompany revenues,
for the three and six months ended
Three months ended June 30, 2011
-------------------------------------------------------
Canada -
stated in
thousands Canada - U.S. -
of percent- percent-
Canadian age of age of
dollars gross gross
("C$") revenue U.S. revenue
-------------------------------------------------------
Commercial $ 74,517 33.9 $ 84,288 27.0
Industrial 36,678 16.7 48,053 15.4
Residential 36,195 16.5 61,982 19.8
Transfer and
disposal 56,994 26.0 100,397 32.1
Recycling
and other 15,212 6.9 17,828 5.7
-------------------------------------------------------
Gross
revenues $ 219,596 100.0 $ 312,548 100.0
-------------------------------------------------------
-------------------------------------------------------
Total
collection $ 162,602 74.0 $ 212,151 67.9
Transfer and
disposal 56,994 26.0 100,397 32.1
-------------------------------------------------------
Gross
revenues $ 219,596 100.0 $ 312,548 100.0
-------------------------------------------------------
Six months ended June 30, 2011
-------------------------------------------------------
Canada - U.S. -
Canada - percent- percent-
stated in age of age of
thousands gross gross
of C$ revenue U.S. revenue
-------------------------------------------------------
Commercial $ 146,918 36.0 $ 164,140 27.4
Industrial 68,790 16.9 89,767 15.0
Residential 65,815 16.1 122,542 20.5
Transfer and
disposal 101,590 24.9 187,771 31.3
Recycling
and other 24,705 6.1 34,779 5.8
-------------------------------------------------------
Gross
revenues $ 407,818 100.0 $ 598,999 100.0
-------------------------------------------------------
-------------------------------------------------------
Total
collection $ 306,228 75.1 $ 411,228 68.7
Transfer and
disposal 101,590 24.9 187,771 31.3
-------------------------------------------------------
Gross
revenues $ 407,818 100.0 $ 598,999 100.0
-------------------------------------------------------
-------------------------------------------------------
Three months ended June 30, 2010
-------------------------------------------------------
Canada - U.S. -
Canada - percent- percent-
stated in age of age of
thousands gross gross
of C$ revenue U.S. revenue
-------------------------------------------------------
Commercial $ 48,895 34.8 $ 49,048 23.4
Industrial 24,081 17.1 27,881 13.3
Residential 19,687 14.0 43,406 20.7
Transfer and
disposal 40,235 28.6 76,838 36.6
Recycling
and other 7,747 5.5 12,535 6.0
-------------------------------------------------------
Gross
revenues $ 140,645 100.0 $ 209,708 100.0
-------------------------------------------------------
-------------------------------------------------------
Total
collection $ 100,410 71.4 $ 132,870 63.4
Transfer and
disposal 40,235 28.6 76,838 36.6
-------------------------------------------------------
Gross
revenues $ 140,645 100.0 $ 209,708 100.0
-------------------------------------------------------
Six months ended June 30, 2010
-------------------------------------------------------
Canada - U.S. -
Canada - percent- percent-
stated in age of age of
thousands gross gross
of C$ revenue U.S. revenue
-------------------------------------------------------
Commercial $ 94,152 36.4 $ 97,335 24.4
Industrial 43,316 16.7 51,641 13.0
Residential 36,267 14.0 87,094 21.9
Transfer and
disposal 69,965 27.0 139,434 35.0
Recycling
and other 15,203 5.9 22,761 5.7
-------------------------------------------------------
Gross
revenues $ 258,903 100.0 $ 398,265 100.0
-------------------------------------------------------
-------------------------------------------------------
Total
Collection $ 188,938 73.0 $ 258,831 65.0
Transfer and
disposal 69,965 27.0 139,434 35.0
-------------------------------------------------------
Gross
revenues $ 258,903 100.0 $ 398,265 100.0
-------------------------------------------------------
-------------------------------------------------------
Gross revenue by service type
(prepared on a comparable basis, which includes WSI's operations, net of divestitures, in the previously comparative quarter and year-to-date period)
The following tables compare gross revenues, which include intercompany revenues,
for the three and six months ended
Three months ended June 30, 2011
-------------------------------------------------------
Canada - U.S. -
Canada - percent- percent-
stated in age of age of
thousands gross gross
of C$ revenue U.S. revenue
-------------------------------------------------------
Commercial $ 74,517 33.9 $ 84,288 27.0
Industrial 36,678 16.7 48,053 15.4
Residential 36,195 16.5 61,982 19.8
Transfer and
disposal 56,994 26.0 100,397 32.1
Recycling
and other 15,212 6.9 17,828 5.7
-------------------------------------------------------
Gross
revenues $ 219,596 100.0 $ 312,548 100.0
-------------------------------------------------------
-------------------------------------------------------
Total
collection $ 162,602 74.0 $ 212,151 67.9
Transfer and
disposal 56,994 26.0 100,397 32.1
-------------------------------------------------------
Gross
revenues 219,596 100.0 $ 312,548 100.0
-------------------------------------------------------
-------------------------------------------------------
Six months ended June 30, 2011
-------------------------------------------------------
Canada - U.S. -
Canada - percent- percent-
stated in age of age of
thousands gross gross
of C$ revenue U.S. revenue
-------------------------------------------------------
Commercial $ 146,918 36.0 $ 164,140 27.4
Industrial 68,790 16.9 89,767 15.0
Residential 65,815 16.1 122,542 20.5
Transfer and
disposal 101,590 24.9 187,771 31.3
Recycling
and other 24,705 6.1 34,779 5.8
-------------------------------------------------------
Gross
revenues $ 407,818 100.0 $ 598,999 100.0
-------------------------------------------------------
-------------------------------------------------------
Total
collection $ 306,228 75.1 $ 411,228 68.7
Transfer and
disposal 101,590 24.9 187,771 31.3
-------------------------------------------------------
Gross
revenues $ 407,818 100.0 $ 598,999 100.0
-------------------------------------------------------
Three months ended June 30, 2010
-------------------------------------------------------
Canada - U.S. -
Canada - percent- percent-
stated in age of age of
thousands gross gross
of C$ (2) revenue U.S.(2) revenue
-------------------------------------------------------
Commercial $ 70,423 33.6 $ 73,529 26.6
Industrial 36,742 17.5 40,265 14.5
Residential 34,945 16.7 53,901 19.5
Transfer and
disposal 53,149 25.4 90,816 32.8
Recycling
and other 14,135 6.8 18,234 6.6
-------------------------------------------------------
Gross
revenues $ 209,394 100.0 $ 276,745 100.0
-------------------------------------------------------
Total
collection $ 156,245 74.6 $ 185,929 67.2
Transfer and
disposal 53,149 25.4 90,816 32.8
-------------------------------------------------------
Gross
revenues $ 209,394 100.0 $ 276,745 100.0
-------------------------------------------------------
Note:
(2) Prior period amounts have been adjusted for
divestitures and have been adjusted to conform to
the current period's presentation.
Six months ended June 30, 2010
-------------------------------------------------------
Canada - U.S. -
Canada - percent- percent-
stated in age of age of
thousands gross gross
of C$ (2) revenue U.S.(2) revenue
-------------------------------------------------------
Commercial $ 136,837 35.5 $ 146,050 27.5
Industrial 67,491 17.6 76,124 14.4
Residential 64,415 16.8 107,333 20.3
Transfer and
disposal 94,033 24.5 167,802 31.7
Recycling
and other 21,519 5.6 32,420 6.1
-------------------------------------------------------
Gross
revenues $ 384,295 100.0 $ 529,729 100.0
-------------------------------------------------------
Total
collection $ 290,262 75.5 $ 361,927 68.3
Transfer and
disposal 94,033 24.5 167,802 31.7
-------------------------------------------------------
Gross
revenues $ 384,295 100.0 $ 529,729 100.0
-------------------------------------------------------
Note:
(2) Prior period amounts have been adjusted for
divestitures and have been adjusted to conform to
the current period's presentation.
Gross revenue growth or decline components - expressed in percentages and excluding FX
(prepared on a comparable basis - 2011 only)
The tables below have been prepared on a "comparable basis" as outlined above. However, component percentages presented for 2010 have not been prepared on a comparable basis and accordingly do not include WSI's results.
Three months ended Three months ended
June 30, 2011 June 30, 2010
----------------------------------------------------------------------------
Canada U.S. Canada (3) U.S. (3)
----------------------------------------------------------------------------
Price
Price 2.2 1.6 3.9 3.1
Fuel surcharges 1.3 1.2 0.9 0.4
----------------------------------------------------------------------------
Total price growth 3.5 2.8 4.8 3.5
Volume 1.4 (0.6) 7.2 3.4
----------------------------------------------------------------------------
Total organic gross revenue growth 4.9 2.2 12.0 6.9
Acquisitions - 10.7 7.8 1.3
----------------------------------------------------------------------------
Total gross revenue growth 4.9 12.9 19.8 8.2
----------------------------------------------------------------------------
Note:
(3) Prior period amounts have been adjusted to conform to the current
period's presentation.
Six months ended Six months ended
June 30, 2011 June 30, 2010
----------------------------------------------------------------------------
Canada U.S. Canada (3) U.S. (3)
----------------------------------------------------------------------------
Price
Price 2.5 1.6 4.6 3.2
Fuel surcharges 1.1 1.1 0.9 0.1
----------------------------------------------------------------------------
Total price growth 3.6 2.7 5.5 3.3
Volume 1.2 - 8.0 2.3
----------------------------------------------------------------------------
Total organic gross revenue
growth 4.8 2.7 13.5 5.6
Acquisitions 1.3 10.4 5.4 1.8
----------------------------------------------------------------------------
Total gross revenue growth 6.1 13.1 18.9 7.4
----------------------------------------------------------------------------
Note:
(3) Prior period amounts have been adjusted to conform to the current
period's presentation.
Three months ended
The increase in Canadian segment gross revenues, presented on a "comparable
basis", is approximately
On a comparable basis, gross revenues in the U.S. south increased approximately
Gross revenues in our U.S. northeast segment increased as well, approximately
Six months ended
Prepared on a comparable basis, the increase in Canadian segment gross revenues
is approximately
On a comparable basis, U.S. south segment gross revenues increased approximately
Year-to-date gross revenue increased in our U.S. northeast segment, approximately
Operating expenses
Three and six months ended
In total, the comparative increase in operating expenses is due principally
to our mix of business acquired from WSI and other "tuck-in" acquisitions, and
is also due in part to FX, higher fuel costs and higher overall collected waste
volumes in our pre-existing base business. Acquisitions are the primary reasons
for the increases in current period disposal, labour, vehicle and insurance
costs, which increased approximately
Looking at
The mix of revenues acquired on our acquisition of WSI, coupled with other
"tuck-in" acquisitions, also impacted operating expenses as a percentage of
reportable revenues in our U.S. south segment. However, unlike
On a comparative basis, the U.S. northeast region experienced an increase in its cost of operations relative to reportable revenues. The marked increase in operating costs, relative to revenues, is due to higher disposal which is attributable to higher transportation and related disposal costs incurred for special wastes disposed of at third-party sites. The increase in disposal costs is also on account of the change in revenue mix attributable to "tuck-in" acquisitions which introduced more collection operations in this segment. Vehicle operating costs is the other main area which contributed to increasing operating costs. The increase in vehicle operating costs is a function of both increasing fuel prices and mix of service offering due to "tuck-in" acquisitions. Removing the impact of fuel surcharges from revenues and operating expenses on a comparative current quarter and year-to-date basis, had a negligible impact on operating margins in both periods. Finally, we experienced higher leachate disposal costs in the quarter and year-to-date, due to weather and higher comparative costs of disposal.
SG&A expenses
Three and six months ended
Excluding the impact of FX, approximately
The impact of acquisitions is the primary contributor to the increases in
salaries and facility costs. In the current quarter, salaries in total increased
approximately
Corporate SG&A includes certain executive costs, legal, 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. On a comparative basis, transaction and related costs
declined approximately
Free cash flow(B)
Purpose and objective
The purpose of presenting this non-GAAP measure is to provide disclosure similar to that provided by other U.S. publicly listed companies in our industry and to provide investors and analysts with 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, debt repayment, share repurchases or dividend increases.
Free cash flow(B) - cash flow approach
Three months ended June 30 Six months ended June 30
----------------------------------------------------------------------------
2011 2010 Change 2011 2010 Change
----------------------------------------------------------------------------
Cash generated
from operating
activities
(from statement
of cash flows) $ 92,632 $ 81,196 $ 11,436 $ 147,286 $ 125,236 $ 22,050
----------------------------------------------------------------------------
Operating and
investing
Stock option
(recovery)
expense (3,824) 2,679 (6,503) 1,520 3,440 (1,920)
Acquisition and
related costs 458 2,092 (1,634) 773 4,090 (3,317)
Restructuring
expenses 278 - 278 1,125 - 1,125
Other expenses 609 34 575 795 58 737
Changes in non-
cash working
capital items 19,059 (13,338) 32,397 53,692 1,752 51,940
Capital and
landfill asset
purchases (44,407) (28,521) (15,886) (69,816) (48,604) (21,212)
Financing
Net realized
foreign
exchange (gain)
loss (29) 24 (53) (32) 54 (86)
----------------------------------------------------------------------------
Free cash
flow(B) $ 64,776 $ 44,166 $ 20,610 $ 135,343 $ 86,026 $ 49,317
----------------------------------------------------------------------------
Free cash flow(B) - adjusted EBITDA(A) approach
Three months ended June 30 Six months ended June 30
----------------------------------------------------------------------------
2011 2010 Change 2011 2010 Change
----------------------------------------------------------------------------
Adjusted
EBITDA(A) $ 136,264 $ 88,598 $ 47,666 $ 259,361 $ 164,539 $ 94,822
----------------------------------------------------------------------------
Restricted share
expense 179 417 (238) 353 830 (477)
Capital and
landfill asset
purchases (44,407) (28,521) (15,886) (69,816) (48,604) (21,212)
Landfill closure
and post-
closure
expenditures (359) (1,167) 808 (2,060) (1,552) (508)
Landfill closure
and post-
closure cost
accretion
expense 1,276 882 394 2,545 1,762 783
Interest on
long-term debt (16,542) (8,244) (8,298) (33,060) (16,181) (16,879)
Non-cash
interest
expense 1,362 716 646 2,715 1,425 1,290
Current income
tax expense (12,997) (8,515) (4,482) (24,695) (16,193) (8,502)
----------------------------------------------------------------------------
Free cash
flow(B) $ 64,776 $ 44,166 $ 20,610 $ 135,343 $ 86,026 $ 49,317
----------------------------------------------------------------------------
Three and six months ended
Excluding FX, approximately
Capital and landfill purchases
Capital and landfill purchases characterized as replacement and growth expenditures are as follows:
Three months ended June 30 Six months ended June 30
----------------------------------------------------------------------------
2011 2010 Change 2011 2010 Change
----------------------------------------------------------------------------
Replacement $ 33,019 $ 19,943 $ 13,076 $ 51,061 $ 31,842 $ 19,219
Growth 11,388 8,578 2,810 18,755 16,762 1,993
----------------------------------------------------------------------------
Total $ 44,407 $ 28,521 $ 15,886 $ 69,816 $ 48,604 $ 21,212
----------------------------------------------------------------------------
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 and six months ended
In total, replacement expenditures increased comparatively in both the current
quarter and year-to-date. The increases are primarily concentrated in
In the U.S., the second quarter increase in replacement expenditures is due
to our larger base business profile, approximately
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 and six months ended
Growth expenditures increased in both the quarter and year-to-date periods.
Higher second quarter expenditures in our U.S. business is the primary cause
for the increases. Facility investment, approximately
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
Condensed
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 $ 329,000 $ 54,712 $ 141,288
U.S. long-term debt facilities - stated in U.S. dollars
Revolving credit
facility $ 1,077,500 $ 823,500 $ 144,839 $ 109,161
Variable rate demand
solid waste
disposal revenue
bonds("IRBs")(4) $ 194,000 $ 109,000 $ - $ 85,000
Other $ 4,000 $ 4,000 $ - $ -
Note:
(4) IRB drawings 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. However, IRB drawings bearing interest at floating
rates requires us to issue letters of credit equal to the principal amount
of the IRB drawn.
Funded debt to EBITDA (as defined and calculated in accordance with our Canadian and U.S. long-term debt facilities)
At
June 30, 2011 December 31, 2010
----------------------------------------------------------------------------
Canada U.S. Canada U.S.
----------------------------------------------------------------------------
Funded debt to EBITDA 1.86 3.28 1.91 3.20
Funded debt to EBITDA maximum 3.00 4.00 3.00 4.00
Canadian facility
On
We increased Canadian facility advances since
Effective
U.S. facility
On
The increase in U.S. facility advances since
Effective
Long-term debt to pro forma adjusted EBITDA(A)
Our pro forma adjusted EBITDA(A) ratio prepared on a combined basis, assuming FX parity, is 2.64 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, excluding certain non-operating or non-recurring SG&A expense, on the condensed consolidated statement of operations and comprehensive income. Adjusted EBITDA excludes some or all of the following: certain SG&A expenses, restructuring expenses, amortization, net gain or loss on sale of capital assets, interest on long-term debt, net foreign exchange gain or loss, net gain or loss on financial instruments, other expenses, income taxes and 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 companies. 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 investee) or non-operating (in the case of certain SG&A expenses, restructuring expenses, net gain or loss on sale of capital assets, interest on long-term debt, 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 non-operating or non-recurring expenses. These expenses include transaction costs related to acquisitions and fair value adjustments attributable to stock options. 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 assets - proceeds from the sale of capital assets are either reinvested in additional or replacement capital 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).
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 condensed 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 assets and ending with net income and includes certain adjustments for expenses recorded to SG&A, which management views as not being indicative of continuing operations. A reconciliation between operating income and adjusted EBITDA is provided in the table that follows. Adjusted operating income and adjusted net income are also presented in the reconciliation below.
Three months ended Six months ended
June 30 June 30
----------------------------------------------------------------------------
2011 2010 2011 2010
----------------------------------------------------------------------------
Operating income $ 73,241 $ 41,100 $ 128,436 $ 74,827
Transaction and related
costs - SG&A 458 2,092 773 4,090
Fair value movements in
stock options - SG&A (3,824) 2,679 1,520 3,440
Restructuring expenses 278 - 1,125 -
----------------------------------------------------------------------------
Adjusted operating
income 70,153 45,871 131,854 82,357
----------------------------------------------------------------------------
Net (gain) or loss on
sale of capital assets (356) (369) (1,779) (431)
Amortization 66,467 43,096 129,286 82,613
----------------------------------------------------------------------------
Adjusted EBITDA $ 136,264 $ 88,598 $ 259,361 $ 164,539
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Net income $ 36,607 $ 19,835 $ 59,705 $ 36,545
Transaction and related
costs - SG&A 458 2,092 773 4,090
Fair value movements in
stock options - SG&A (3,824) 2,679 1,520 3,440
Restructuring expenses 278 - 1,125 -
Net (gain) or loss on
financial instruments (429) (1,208) (2,355) (1,750)
Other expenses 609 34 795 58
Net income tax expense
or recovery (159) (68) 76 (335)
----------------------------------------------------------------------------
Adjusted net income $ 33,540 $ 23,364 $ 61,639 $ 42,048
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(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 companies. The purpose of presenting this non-GAAP measure 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, debt repayment, share repurchases or dividend increases. All references to "free cash flow" in this press release have the meaning set out in this note.
About
As
To find out more about
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Progressive Waste Solutions Ltd. (formerlyIESI-BFC Ltd. ) Condensed Consolidated Balance SheetsJune 30, 2011 (unaudited) andDecember 31, 2010 (stated in accordance with accounting principles generally accepted inthe United States of America and in thousands of U.S. dollars) ---------------------------------------------------------------------------- December 31, June 30, 2011 2010 ---------------------------------------------------------------------------- ASSETS CURRENT Cash and cash equivalents $ 12,891 $ 13,406 Accounts receivable 242,125 207,098 Other receivables 480 472 Prepaid expenses 34,739 27,254 Restricted cash 446 434 Other assets 3,248 1,928 ---------------------------------------------------------------------------- 293,929 250,592 OTHER RECEIVABLES 599 806 FUNDED LANDFILL POST-CLOSURE COSTS 9,473 8,949 INTANGIBLES 273,643 272,082 GOODWILL 1,140,873 1,081,868 LANDFILL DEVELOPMENT ASSETS 12,894 12,174 DEFERRED FINANCING COSTS 19,640 21,157 CAPITAL ASSETS 777,449 758,287 LANDFILL ASSETS 969,573 975,691 INVESTMENT IN EQUITY ACCOUNTED INVESTEE 4,221 4,117 OTHER ASSETS 3,703 4,764 ---------------------------------------------------------------------------- $ 3,505,997 $ 3,390,487 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- LIABILITIES CURRENT Accounts payable $ 109,627 $ 100,181 Accrued charges 130,774 136,629 Dividends payable 15,662 15,296 Income taxes payable 6,026 14,425 Deferred revenues 18,234 20,378 Current portion of long-term debt 1,500 1,500 Landfill closure and post-closure costs 6,588 8,229 Other liabilities 5,550 6,091 ---------------------------------------------------------------------------- 293,961 302,729 LONG-TERM DEBT 1,336,328 1,258,159 LANDFILL CLOSURE AND POST-CLOSURE COSTS 98,828 90,010 OTHER LIABILITIES 6,960 7,329 DEFERRED INCOME TAXES 99,396 85,665 ---------------------------------------------------------------------------- 1,835,473 1,743,892 ---------------------------------------------------------------------------- SHAREHOLDERS' EQUITY Common shares (authorized - unlimited, issued and outstanding - 120,759,034 (December 31, 2010 - 121,429,737)) 1,864,651 1,878,286 Restricted shares (issued and outstanding - 67,150 (December 31, 2010 - 277,150)) (1,127) (5,169) Additional paid in capital 1,962 7,092 Deficit (168,249) (188,972) Accumulated other comprehensive loss (26,713) (44,642) ---------------------------------------------------------------------------- Total shareholders' equity 1,670,524 1,646,595 ---------------------------------------------------------------------------- $ 3,505,997 $ 3,390,487 ---------------------------------------------------------------------------- ----------------------------------------------------------------------------Progressive Waste Solutions Ltd. (formerlyIESI-BFC Ltd. ) Condensed Consolidated Statements of Operations and Comprehensive Income For the three and six months endedJune 30, 2011 and 2010 (unaudited - stated in accordance with accounting principles generally accepted inthe United States of America and in thousands of U.S. dollars, except share and net income per share amounts) ---------------------------------------------------------------------------- Three months ended Six months ended ---------------------------------------------------------------------------- 2011 2010 2011 2010 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- REVENUES $469,512 $299,582 $892,362 $563,624 EXPENSES OPERATING 279,504 174,568 526,309 325,637 SELLING, GENERAL AND ADMINISTRATION 50,378 41,187 108,985 80,978 RESTRUCTURING 278 - 1,125 - AMORTIZATION 66,467 43,096 129,286 82,613 NET GAIN ON SALE OF CAPITAL ASSETS (356) (369) (1,779) (431) ---------------------------------------------------------------------------- OPERATING INCOME 73,241 41,100 128,436 74,827 INTEREST ON LONG-TERM DEBT 16,542 8,244 33,060 16,181 NET FOREIGN EXCHANGE (GAIN) LOSS (29) 24 (32) 54 NET GAIN ON FINANCIAL INSTRUMENTS (429) (1,208) (2,355) (1,750) OTHER EXPENSES 609 34 795 58 ---------------------------------------------------------------------------- INCOME BEFORE INCOME TAX EXPENSE AND NET LOSS FROM EQUITY ACCOUNTED INVESTEE 56,548 34,006 96,968 60,284 INCOME TAX EXPENSE Current 12,997 8,515 24,695 16,193 Deferred 6,922 5,635 12,542 7,500 ---------------------------------------------------------------------------- 19,919 14,150 37,237 23,693 NET LOSS FROM EQUITY ACCOUNTED INVESTEE 22 21 26 46 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- NET INCOME 36,607 19,835 59,705 36,545 ---------------------------------------------------------------------------- OTHER COMPREHENSIVE INCOME (LOSS) Foreign currency translation adjustment 4,780 (7,752) 18,754 (2,405) Derivatives designated as cash flow hedges, net of income tax$2,683 and$848 (2010 -$811 and $695) (4,980) (1,506) (1,573) (1,339) Settlement of derivatives designated as cash flow hedges, net of income tax($271) and ($403) (2010 - $8 and $59) 503 (14) 748 (110) ---------------------------------------------------------------------------- COMPREHENSIVE INCOME $ 36,910 $ 10,563 $ 77,634 $ 32,691 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- NET INCOME - CONTROLLING INTEREST $ 36,607 $ 17,489 $ 59,705 $ 32,223 NET INCOME - NON-CONTROLLING INTEREST $ - $ 2,346 $ - $ 4,322 COMPREHENSIVE INCOME - CONTROLLING INTEREST $ 36,910 $ 9,313 $ 77,634 $ 28,825 COMPREHENSIVE INCOME - NON- CONTROLLING INTEREST $ - $ 1,250 $ - $ 3,866 Net income per weighted average share, basic $ 0.30 $ 0.21 $ 0.49 $ 0.39 Net income per weighted average share, diluted $ 0.30 $ 0.21 $ 0.49 $ 0.39 Weighted average number of shares outstanding (thousands), basic 120,748 82,383 121,220 82,363 Weighted average number of shares outstanding (thousands), diluted 120,748 93,431 121,220 93,431Progressive Waste Solutions Ltd. (formerlyIESI-BFC Ltd. ) Condensed Consolidated Statements of Cash Flows For the three and six months endedJune 30, 2011 and 2010 (unaudited - stated in accordance with accounting principles generally accepted inthe United States of America and in thousands of U.S. dollars) ---------------------------------------------------------------------------- Three months ended Six months ended ---------------------------------------------------------------------------- 2011 2010 2011 2010 ---------------------------------------------------------------------------- NET INFLOW (OUTFLOW) OF CASH RELATED TO THE FOLLOWING ACTIVITIES OPERATING Net income $ 36,607 $ 19,835 $ 59,705 $ 36,545 Items not affecting cash Restricted share expense 179 417 353 830 Accretion of landfill closure and post-closure costs 1,276 882 2,545 1,762 Amortization of intangibles 11,936 6,225 24,100 13,282 Amortization of capital assets 32,151 19,972 64,600 39,039 Amortization of landfill assets 22,380 16,899 40,586 30,292 Interest on long-term debt (amortization of deferred financing costs) 1,362 716 2,715 1,425 Net gain on sale of capital assets (356) (369) (1,779) (431) Net gain on financial instruments (429) (1,208) (2,355) (1,750) Deferred income taxes 6,922 5,635 12,542 7,500 Net loss from equity accounted investee 22 21 26 46 Landfill closure and post-closure expenditures (359) (1,167) (2,060) (1,552) Changes in non-cash working capital items (19,059) 13,338 (53,692) (1,752) ---------------------------------------------------------------------------- Cash generated from operating activities 92,632 81,196 147,286 125,236 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- INVESTING Acquisitions (77,655) (1,488) (90,035) (53,935) Restricted cash deposits (12) (43) (12) (43) Proceeds from other receivables 119 145 234 284 Funded landfill post-closure costs (81) (75) (179) (85) Purchase of capital assets (33,031) (20,757) (48,933) (34,659) Purchase of landfill assets (11,376) (7,764) (20,883) (13,945) Proceeds from the sale of capital assets 777 626 3,450 690 Investment in landfill development assets (2,495) (678) (3,117) (942) ---------------------------------------------------------------------------- Cash utilized in investing activities (123,754) (30,034) (159,475) (102,635) ---------------------------------------------------------------------------- FINANCING Payment of deferred financing costs - (2,064) (1,020) (2,065) Proceeds from long-term debt 133,130 19,097 236,613 99,865 Repayment of long-term debt (85,953) (55,134) (170,769) (94,025) Common shares issued, net of issue costs - (6) - (12) Proceeds from the exercise of stock options 563 - 855 - Repurchase of common shares - - (23,500) - Dividends paid to share and participating preferred share holders (15,594) (11,364) (31,023) (22,584) ---------------------------------------------------------------------------- Cash generated from (utilized in) financing activities 32,146 (49,471) 11,156 (18,821) Effect of foreign currency translation on cash and cash equivalents 93 (901) 518 (559) ---------------------------------------------------------------------------- NET CASH INFLOW (OUTFLOW) 1,117 790 (515) 3,221 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD OR YEAR 11,774 7,422 13,406 4,991 ---------------------------------------------------------------------------- CASH AND CASH EQUIVALENTS, END OF PERIOD $ 12,891 $ 8,212 $ 12,891 $ 8,212 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- SUPPLEMENTAL CASH FLOW INFORMATION: Cash and cash equivalents are comprised of: Cash $ 12,891 $ 7,269 $ 12,891 $ 7,269 Cash equivalents - 943 - 943 ---------------------------------------------------------------------------- $ 12,891 $ 8,212 $ 12,891 $ 8,212 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Cash paid during the period for: Income taxes $ 16,349 $ 2,581 $ 31,392 $ 6,421 Interest $ 14,982 $ 7,456 $ 31,278 $ 15,857
For more information, contact:
VP, Investor Relations and Corporate Communications
(905) 532-7517
chaya.cooperberg@progressivewaste.com.
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