Date: October 31, 2006
Source: Waste Industries USA, Inc.
Waste Industries USA, Inc. Reports Third Quarter 2006 Financial Results
Waste Industries USA, Inc. (Nasdaq: WWIN), a regional, non-hazardous solid waste services company, today reported preliminary financial results for the third quarter ended September 30, 2006.
For the quarter ended September 30, 2006, revenue increased 4.1% to $84.7 million, compared to $81.3 million for the quarter ended September 30, 2005. Operating income for the third quarter 2006 increased 51.5% to $11.1 million, compared to $7.3 million for the same period in 2005. Income from continuing operations for the third quarter 2006 was $3.9 million, or $0.28 per diluted share, a 31.6% increase from income from continuing operations of $3.0 million, or $0.21 per diluted share, for the third quarter of 2005. Net income for the third quarter was $3.8 million, or $0.27 per diluted share, a 23.5% increase from net income of $3.0 million, or $0.22 per diluted share, for the third quarter of 2005. The current period results were affected by a higher than anticipated effective tax rate of 55.8%, compared to 41.0% in the year-ago period. This increase was primarily due to an adjustment of $1.2 million, or approximately $0.09 per diluted share, to accrued deferred tax liabilities resulting from an increase in the Company's estimated deferred tax rate.
For the nine months ended September 30, 2006, revenue increased 9.3% to $246.4 million, compared to $225.5 million for the same period in 2005. Operating income increased 43.4% to $28.4 million, compared to $19.8 million for the nine months ended September 30, 2005. Income from continuing operations was $11.8 million, or $0.84 per diluted share, a 54.7% increase from income from continuing operations of $7.6 million, or $0.55 per diluted share, for the nine months ended September 30, 2005. Income from discontinued operations (net of income taxes) was $2.1 million, or $0.15 per diluted share, for the nine months ended September 30, 2006, compared to $0.6 million, or $0.05 per diluted share, for the same period in 2005. Net income for the nine months ended September 30, 2006 was $13.9 million, or $0.99 per diluted share, a 68.9% increase from net income of $8.2 million, or $0.60 per diluted share, for the nine months ended September 30, 2005.
Jim W. Perry, President and CEO of the Company, stated, "Our performance for the third quarter reflects our continuing focus on optimizing our assets, reducing our G&A expenses and improving the pricing for our core services. Our strategy to internalize more of our waste stream into our landfills also had a positive impact on our operating results for the quarter and year-to- date."
The Company will host a conference call to discuss its third quarter results on November 1, 2006 at 2:00 PM (Eastern Time). The call number is (800) 946-0715 and the confirmation number is 4598428. The conference call will also be broadcast live over the Internet at www.waste-ind.com under the "Investor Relations" tab. A replay of the call will be available through November 8, 2006 and may be accessed by calling (888) 203-1112 and using confirmation number 4598428.
Waste Industries USA, Inc. is a vertically integrated solid waste services company that provides collection, transfer, disposal and recycling services to commercial, industrial and residential customer locations in the states of North Carolina, South Carolina, Virginia, Tennessee, Mississippi and Georgia.
| WASTE INDUSTRIES USA, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
||||
| (In Thousands, Except Per Share Data) (Unaudited) |
Three Months Ended September 30, |
Nine Months Ended September 30, |
||
| 2005 | 2006 | 2005 | 2006 | |
|
Revenues:
|
$81,198 | $84,387 | $225,045 | $245,687 |
Equipment sales |
150 | 294 | 461 | 740 |
|
81,348 | 84,681 | 225,506 | 246,427 |
|
Operating costs and expenses:
|
55,466 | 55,670 | 152,895 | 161,909 |
|
83 | 145 | 287 | 432 |
|
11,120 | 10,228 | 31,004 | 32,455 |
|
7,598 | 7,862 | 21,785 | 23,860 |
|
(223) | (303) | (447) | (688) |
|
- | 15 | 143 | 15 |
|
74,044 | 73,617 | 205,667 | 217,983 |
| Operating income | 7,304 | 11,064 | 19,839 | 28,444 |
|
2,434 | 2,379 | 7,395 | 7,287 |
|
(29) | (36) | (61) | (131) |
|
(110) | (76) | (191) | (226) |
|
2,295 | 2,267 | 7,143 | 6,930 |
| Income from continuing operations before income taxes |
5,009 | 8,797 | 12,696 | 21,514 |
| Income tax expense | 2,055 | 4,910 | 5,092 | 9,754 |
| Income from continuing operations |
2,954 | 3,887 | 7,604 | 11,760 |
| Discontinued operations: Income (loss) from discontinued operations, net of income taxes |
86 | (134) | 628 | 2,145 |
| Net income | $3,040 | $3,753 | $8,232 | $13,905 |
|
Earnings per share: Basic:
|
$0.21 | $0.28 | $0.56 | $0.85 |
|
0.01 | (0.01) | 0.04 | 0.15 |
|
$0.22 | $0.27 | $0.60 | $1.00 |
|
Diluted:
|
$0.21 | $0.28 | $0.55 | $0.84 |
|
0.01 | (0.01) | 0.05 | 0.15 |
|
$0.22 | $0.27 | $0.60 | $0.99 |
|
Weighted-Average Number Of
|
13,706 | 13,910 | 13,640 | 13,844 |
|
13,852 | 14,072 | 13,811 | 14,025 |
For more information, visit: www.waste-ind.com.
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