Date: February 23, 2009
Source: Waste Services, Inc.
Adjusted EBITDA of
Adjusted EBITDA margin of 23.7% for the quarter and 22.6% for the year as compared to 22.1% and 22.3% in 2007.
Adjusted earnings per share(1) from continuing operations of
Total debt reduced by
For the current quarter adjusted income from operations, excluding one
time charges, was
Excluding recycled commodity sales, internal revenue growth from price was 3.7%. With commodity sales, internal revenue growth was 2.3% from price and 0.4% from fuel surcharge.
Internal revenue growth from volume declined by 5.4%.
Foreign currency translation accounted for
For the full year 2008, the Company reported revenue of
For the year adjusted income from operations, excluding one time
charges, was
Revenue growth of 2.5% to
Internal revenue growth was 1.9%, made up of 3.9% from price, 2.3% from fuel and environmental surcharge and (4.3%) volume.
Acquisitions net of divestitures added
(1) Adjusted EPS is defined as earnings per share as adjusted to reflect the average statutory income tax rate estimated at 36%.
Looking forward, capital expenditures will be below
Reconciliation of Non-GAAP Measures:
The following table reconciles the differences between loss from continuing operations, as determined under US GAAP, and EBITDA from continuing operations, a non-GAAP financial measure (in thousands) (unaudited):
For The Three Months For The Year
Ended December 31, Ended December 31,
2008 2007 2008 2007
Loss from continuing operations $(14,785) $(843) $(1,956) $(14,303)
Income tax provision (benefit) (744) 3,819 6,183 14,437
Interest expense 11,661 9,860 37,432 40,679
Depreciation, depletion and
amortization 10,522 14,045 45,348 54,891
EBITDA from continuing
operations (1) $6,654 $26,881 $87,007 $95,704
The following table reconciles the differences between EBITDA from
continuing operations and Adjusted EBITDA from continuing operations for the
three months and year ended
For The Three Months For The Year
Ended December 31, Ended December 31,
2008 2007 2008 2007
EBITDA from continuing
operations (1) $6,654 $26,881 $87,007 $95,704
Adjustments to EBITDA from
continuing operations (as
defined per credit agreement):
Non-cash items (2) 10,532 418 13,005 3,143
Other excludable expenses (3) 7,092 (130) 7,092 4,347
Adjusted EBITDA from continuing
operations (1) $24,278 $27,169 $107,104 $103,194
(1) EBITDA from continuing operations and Adjusted EBITDA from continuing
operations ("Adjusted EBITDA from continuing operations") are
non-GAAP measures used by management to measure performance. We also
believe that EBITDA from continuing operations and Adjusted EBITDA
from continuing operations may be used by certain investors to
analyze and compare our operating performance between accounting
periods and against the operating results of other companies that
have different financing and capital structures or tax rates and to
measure our ability to service our debt. In addition, management
uses EBITDA from continuing operations, among other things, as an
internal performance measure. Our lenders also use Adjusted EBITDA
from continuing operations to measure our ability to service and/or
incur additional indebtedness under our credit facilities. However,
EBITDA from continuing operations and Adjusted EBITDA from
continuing operations should not be considered in isolation or as a
substitute for net income, cash flows or other financial statement
data prepared in accordance with US GAAP or as a measure of our
performance, profitability or liquidity. EBITDA from continuing
operations and Adjusted EBITDA from continuing operations are not
calculated under US GAAP and therefore are not necessarily comparable
to similarly titled measures of other companies.
(2) Non-cash adjustments primarily include expensed deferred acquisition
costs, stock-based compensation expense and gains and losses on
foreign exchange and asset sales.
(3) Other excludable expenses adjustments include professional fees for
certain litigation, severance and other non-recurring restructuring
related costs.
The following table reconciles the differences between income (loss) from
continuing operations before income taxes, as determined under US GAAP, and
adjusted income from continuing operations for the three months and year ended
For The Three Months For The Year
Ended December 31, Ended December 31,
2008 2007 2008 2007
Income (loss) from continuing
operations before income taxes $(15,529) $2,976 $4,227 $134
Add back:
Refinance charges 2,869 - 2,869 -
Restructuring, severance and
related costs 7,092 - 7,092 3,995
Deferred acquisition costs 10,267 - 10,267 -
Adjusted income from continuing
operations before income taxes 4,699 2,976 24,455 4,129
Income tax provision (benefit)
at estimated average statutory
rate of 36% 1,692 1,071 8,804 1,486
Adjusted income from continuing
operations $3,007 $1,905 $15,651 $2,643
Basic and diluted normalized
earnings per share:
Basic and diluted normalized
earnings per share -
continuing operations $0.07 $0.04 $0.34 $0.06
Weighted average common
shares outstanding
Basic 46,082 46,075 46,079 46,007
Diluted 46,147 46,163 46,109 46,529
We will host an investor and analyst conference call on
Safe Harbor for Forward-Looking Statements
Certain matters discussed in this press release are "forward-looking
statements" within the meaning of Section 27A of the Securities Act of 1933
and Section 21E of the Securities Exchange Act of 1934. These statements
describe the company's future plans, objectives and goals. These
forward-looking statements involve risks and uncertainties which could cause
actual results to differ materially from the plans, objectives and goals set
forth in this press release. Factors which could materially affect such
forward-looking statements can be found in the company's periodic reports
filed with the
The forward-looking statements made in this press release are only made as
of the date hereof and
This release does not constitute an offer to sell or the solicitation of
any offer to buy any securities. The company's securities may not be offered
or sold in the
WASTE SERVICES, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
For The Three Months For The Year
Ended December 31, Ended December 31,
2008 2007 2008 2007
Revenue $102,393 $123,252 $473,029 $461,447
Operating and other expenses:
Cost of operations (exclusive
of depreciation, depletion
and amortization) 66,459 79,577 309,121 301,573
Selling, general and
administrative expense
(exclusive of depreciation,
depletion and amortization) 18,531 16,924 66,474 64,239
Deferred acquisition costs 10,267 - 10,267 -
Depreciation, depletion and
amortization 10,522 14,045 45,348 54,891
Foreign exchange loss (gain)
and other 482 (130) 160 (69)
Income (loss) from operations (3,868) 12,836 41,659 40,813
Interest expense 11,661 9,860 37,432 40,679
Income (loss) from continuing
operations before income taxes (15,529) 2,976 4,227 134
Income tax provision (benefit) (744) 3,819 6,183 14,437
Loss from continuing operations (14,785) (843) (1,956) (14,303)
Income from discontinued
operations, net of income tax
provision of $266 for the year
ended December 31, 2008 and nil
for all other periods - 986 409 2,796
Gain (loss) on sale of discontinued
operations, net of income tax
provision of $2,770 and $7,255 for
the three and twelve months ended
December 31, 2008 and nil for all
other periods 4,241 (155) 11,110 (11,607)
Net income (loss) $(10,544) $(12) $9,563 $(23,114)
Basic and diluted earnings (loss)
per share:
Earnings (loss) per share -
continuing operations $(0.32) $(0.02) $(0.04) $(0.31)
Earnings (loss) per share -
discontinued operations 0.09 0.02 0.25 (0.19)
Basic and diluted earnings (loss)
per share $(0.23) $ - $0.21 $(0.50)
Weighted average common
shares outstanding
Basic 46,082 46,075 46,079 46,007
Diluted 46,082 46,075 46,079 46,007
WASTE SERVICES, INC.
SUPPLEMENTAL UNAUDITED BALANCE SHEET AND CASH FLOW DATA
(In thousands)
Balance Sheet Data:
December 31, December 31,
2008 2007
Cash $7,227 $20,706
Current assets $72,961 $99,406
Total assets $840,927 $938,488
Current liabilities $93,245 $95,375
Debt:
Senior secured credit facilities:
US Revolver $34,600 $ -
Canadian Revolver 27,699 -
US Term loan 38,125 -
Canadian Term Loan 103,505 -
Prior Credit facilities
Revolver - -
Term loan - 273,910
Senior subordinated notes 158,854 160,000
Other notes 9,286 10,530
Total debt $372,069 $444,440
Shareholders' equity $335,018 $350,595
Cash Flow Data:
Year Ended December 31,
2008 2007
Net cash flows provided by continuing operations $56,051 $54,677
Net cash flows provided by (used in) investing
activities for continuing operations $(3,123) $(79,557)
Net cash flows provided by (used in) financing
activities of continuing operations $(67,471) $33,608
Capital expenditures from continuing operations $48,066 $57,557
WASTE SERVICES, INC.
SUPPLEMENTAL UNAUDITED GROWTH RATES AND COUNTRY DATA
(In thousands)
Waste Services, Inc.
Revenue Growth
For The Three Months Ended December 31, 2008
(in thousands)
Total Revenue, December 31, 2007 $123,252
Impact on revenue from changes in:
Price 3,274 2.7%
Volume (6,640) -5.4%
Acquisition / Disposition (6) 0.0%
Gain / Loss of Contracts (4,165) -3.4%
Other (570) -0.5%
Foreign currency impact (12,752) -10.3%
Total Revenue, December 31, 2008 $102,393
Waste Services, Inc.
Revenue Growth
For The Year Ended December 31, 2008
(in thousands)
Total Revenue, December 31, 2007 $461,447
Impact on revenue from changes in:
Price 28,725 6.2%
Volume (19,742) -4.3%
Acquisition / Disposition 18,556 4.0%
Gain / Loss of Contracts (16,078) -3.5%
Other (1,894) -0.4%
Foreign currency impact 2,015 0.4%
Total Revenue, December 31, 2008 $473,029
COUNTRY DATA
(In thousands)
Three Months Ended December 31, 2008
US Canada Total
Revenue $52,021 100.0% $50,372 100.0% $102,393 100.0%
Operating expenses:
Cost of operations 31,977 61.4% 34,482 68.4% 66,459 64.9%
Selling, general and
administrative expense
(exclusive of
restructuring,
severance and
related costs) 5,972 11.5% 5,688 11.3% 11,660 11.4%
Restructuring,
severance and
related costs 4,673 9.0% 2,198 4.4% 6,871 6.7%
Deferred acquisition
costs 10,267 19.7% - 0.0% 10,267 10.0%
Depreciation, depletion
and amortization 6,242 12.0% 4,280 8.5% 10,522 10.3%
Foreign exchange (gain)
loss and other (165) -0.2% 647 1.3% 482 0.5%
Income (loss) from
continuing operations $(6,945) -13.4% $3,077 6.1% $(3,868) -3.8%
Three Months Ended December 31, 2007
US Canada Total
Revenue $ 61,838 100.0% $61,414 100.0% $123,252 100.0%
Operating expenses:
Cost of operations 39,329 63.6% 40,248 65.6% 79,577 64.6%
Selling, general and
administrative
expense 8,578 13.9% 8,346 13.6% 16,924 13.7%
Depreciation, depletion
and amortization 8,493 13.7% 5,552 9.0% 14,045 11.4%
Foreign exchange gain
and other (68) -0.1% (62) -0.1% (130) -0.1%
Income from continuing
operations $ 5,506 8.9% $7,330 11.9% $12,836 10.4%
WASTE SERVICES, INC.
UNAUDITED COUNTRY DATA- (Continued)
(In thousands)
Year Ended December 31, 2008
US Canada Total
Revenue $231,352 100.0% $241,677 100.0% $473,029 100.0%
Operating expenses:
Cost of operations 148,474 64.2% 160,647 66.5% 309,121 65.3%
Selling, general and
administrative
expense (exclusive
of restructuring,
severance and related
costs) 30,027 13.0% 29,576 12.2% 59,603 12.6%
Restructuring, severance
and related costs 4,673 2.0% 2,198 0.9% 6,871 1.5%
Deferred acquisition
costs 10,267 4.4% - 0.0% 10,267 2.2%
Depreciation, depletion
and amortization 26,145 11.3% 19,203 7.9% 45,348 9.6%
Foreign exchange (gain)
loss and other (628) -0.3% 788 0.4% 160 0.0%
Income from continuing
operations $12,394 5.4% $29,265 12.1% $41,659 8.8%
Year Ended December 31, 2007
US Canada Total
Revenue $239,384 100.0% $222,063 100.0% $461,447 100.0%
Operating expenses:
Cost of operations 154,250 64.4% 147,323 66.3% 301,573 65.3%
Selling, general and
administrative expense
(exclusive of severance
and related costs) 32,094 13.4% 28,150 12.7% 60,244 13.1%
Severance and related
costs 3,995 1.7% - 0.0% 3,995 0.9%
Depreciation, depletion
and amortization 35,262 14.8% 19,629 8.8% 54,891 11.9%
Foreign exchange (gain)
loss and other 282 0.1% (351) -0.1% (69) 0.0%
Income from continuing
operations $13,501 5.6% $27,312 12.3% $40,813 8.8%
For more information, contact:
J. Todd Atenham, Investor Relations, 1-888-917-5105, for
Web Site: www.wasteservicesinc.com.
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