Date: July 21, 2009
Source: Waste Services, Inc.
Strong core price growth of 4.1%.
Adjusted EBITDA of
Adjusted EBITDA margin of 24.0% for the quarter as compared to 22.8% in 2008.
Adjusted earnings per share(1) from continuing operations of
Reaffirms adjusted earnings per share(1) guidance of
Internal revenue growth from price was
Excluding recycled commodity sales, net of commodity surcharges, core internal revenue growth from price was 4.1%.
Internal revenue relating to volume declined by
Foreign currency translation accounted for
For the six month period ended
Internal revenue growth from price was
Excluding recycled commodity sales, net of commodity surcharges, core internal revenue growth from price was 4.0%.
Internal revenue relating to volume declined by
Foreign currency translation accounted for
(1) Adjusted EPS is defined as earnings per share as adjusted for gains on the sale of non-operating assets and certain non-cash adjustments, primarily cumulative adjustments to stock-based compensation, using the average statutory income tax rate estimated at 36% (see table on page 4).
Reconciliation of Non-GAAP Measures:
The following table reconciles the differences between income from continuing operations, as determined under US GAAP, and EBITDA from continuing operations, a non-GAAP financial measure (in thousands) (unaudited):
For The Three Months For The Six Months
Ended June 30, Ended June 30,
--------------- ---------------
2009 2008 2009 2008
---- ---- ---- ----
Income from continuing operations $3,446 $4,030 $7,456 $9,363
Income tax provision 2,567 5,003 5,155 1,604
Change in fair value of warrants 356 - (1,415) -
Interest expense 7,392 7,802 14,890 18,040
Depreciation, depletion and
amortization 10,716 11,620 21,076 23,322
------ ------ ------ ------
EBITDA from continuing
operations (1) $24,477 $28,455 $47,162 $52,329
======= ======= ======= =======
The following table reconciles the differences between EBITDA from
continuing operations and Adjusted EBITDA from continuing operations for the
three and six months ended
For The Three For The Six
Months Months
Ended June 30, Ended June 30,
--------------- ---------------
2009 2008 2009 2008
---- ---- ---- ----
EBITDA from continuing operations (1) $24,477 $28,455 $47,162 $52,329
Adjustments to EBITDA from continuing
operations (as defined per credit
agreement):
Loss (gain) on sale of assets 1,168 (269) (2,352) (514)
Non-cash items (2) 111 1,096 1,489 2,057
Other excludable expenses (3) 88 - 88 -
-- -- -- --
Adjusted EBITDA from continuing
operations (1) $25,844 $29,282 $46,387 $53,872
======= ======= ======= =======
(1) EBITDA from continuing operations and Adjusted EBITDA from continuing operations ("Adjusted EBITDA from continuing operations") are non-GAAP measures used by management to measure performance. We also believe that EBITDA from continuing operations and Adjusted EBITDA from continuing operations may be used by certain investors to analyze and compare our operating performance between accounting periods and against the operating results of other companies that have different financing and capital structures or tax rates and to measure our ability to service our debt. In addition, management uses EBITDA from continuing operations, among other things, as an internal performance measure. Our lenders also use Adjusted EBITDA from continuing operations to measure our ability to service and/or incur additional indebtedness under our credit facilities. However, EBITDA from continuing operations and Adjusted EBITDA from continuing operations should not be considered in isolation or as a substitute for net income, cash flows or other financial statement data prepared in accordance with US GAAP or as a measure of our performance, profitability or liquidity. EBITDA from continuing operations and Adjusted EBITDA from continuing operations are not calculated under US GAAP and therefore are not necessarily comparable to similarly titled measures of other companies.
(2) Non-cash adjustments primarily include stock-based compensation expense and gains and losses on foreign exchange.
(3) Other excludable expenses adjustments includes other non-recurring costs.
The following table reconciles the differences between income from
continuing operations before income taxes, as determined under US GAAP, and
adjusted income from continuing operations for the three and six months ended
Three Months Six Months
Ended Ended
June 30, June 30,
-------- --------
2009 2008 2009 2008
---- ---- ---- ----
Income from continuing operations
before income taxes $6,013 $9,033 $12,611 $10,967
Adjustments:
Loss (gain) from sale of non-operating
assets 1,268 - (1,994) -
Change in fair value of warrants 356 - (1,415) -
Other non-cash charges (421) - 247 -
---- -- --- --
Adjusted income from continuing
operations before income taxes 7,216 9,033 9,449 10,967
Income tax provision (benefit) at
estimated average statutory rate of 36% 2,598 3,252 3,402 3,948
Adjusted income from continuing
operations $4,618 $5,781 $6,047 $7,019
====== ====== ====== ======
Basic and diluted normalized earnings
per share:
Basic and diluted normalized earnings
per share -continuing operations $0.100 $0.125 $0.131 $0.152
Weighted average common shares
outstanding
Basic 46,254 46,075 46,182 46,075
Diluted 46,254 46,075 46,195 46,084
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)
Three Months Ended Six Months Ended
June 30, June 30,
-------- --------
2009 2008 2009 2008
---- ---- ---- ----
Revenue $107,485 $128,282 $203,277 $244,890
Operating and other expenses:
Cost of operations (exclusive of
depreciation, depletion and
amortization) 69,484 83,605 132,692 160,149
Selling, general and
administrative expense
(exclusive of depreciation,
depletion and amortization) 12,740 16,505 25,949 32,869
Depreciation, depletion and
amortization 10,716 11,620 21,076 23,322
Loss (gain) on sale of property
and equipment, foreign exchange
and other 784 (283) (2,526) (457)
--- ---- ------ ----
Income from operations 13,761 16,835 26,086 29,007
Interest expense 7,392 7,802 14,890 18,040
Change in fair value of warrants 356 - (1,415) -
--- -- ------ --
Income from continuing operations
before income taxes 6,013 9,033 12,611 10,967
Income tax provision 2,567 5,003 5,155 1,604
----- ----- ----- -----
Income from continuing operations 3,446 4,030 7,456 9,363
Income from discontinued
operations, net of income tax
provision of $267 for the six
months ended June 30, 2008 - - - 407
Gain (loss) on sale of
discontinued operations, net of
income tax provision (benefit) of
$(64) and $4,485 for the three and
six months ended June 30, 2008
respectively - (100) - 6,869
-- ---- -- -----
Net income $3,446 $3,930 $7,456 $16,639
====== ====== ====== =======
Basic and diluted earnings per share:
Earnings per share - continuing
operations $0.07 $0.09 $0.16 $0.20
Earnings per share - discontinued
operations - - - 0.16
-- -- -- ----
Earnings per share - basic and
diluted $0.07 $0.09 $0.16 $0.36
===== ===== ===== =====
Weighted average common shares
outstanding:
Basic 46,254 46,075 46,182 46,075
Diluted 46,254 46,075 46,195 46,084
WASTE SERVICES, INC.
SUPPLEMENTAL UNAUDITED BALANCE SHEET AND CASH FLOW DATA
(In thousands)
Balance Sheet Data: June 30, December 31,
2009 2008
---- ----
Cash $4,128 $7,227
Current assets $69,992 $72,961
Total assets $838,687 $840,927
Current liabilities $87,878 $93,245
Debt:
Senior secured credit facilities:
US Revolver $18,000 $34,600
Canadian Revolver 36,040 27,699
US Term loan 37,310 38,125
Canadian Term Loan 106,081 103,505
Senior subordinated notes 158,961 158,854
Other notes 8,630 9,286
Total debt $365,022 $372,069
Shareholders' equity $344,436 $335,018
Cash Flow Data
Six Months Ended June 30,
-------------------------
2009 2008
---- ----
Net cash flows provided by continuing
operations $22,615 $21,481
Net cash flows provided by (used in)
investing activities for continuing
operations $(11,687) $33,767
Net cash flows used in financing
activities of continuing operations $14,499 $43,225
Capital expenditures from continuing
operations $16,347 $20,399
WASTE SERVICES, INC.
SUPPLEMENTAL UNAUDITED GROWTH RATES AND COUNTRY DATA
(In thousands)
Waste Services, Inc.
Revenue Growth
For The Three Months Ended June 30, 2009
(in thousands)
Total Revenue, June 30, 2008 $128,282
Impact on revenue from changes in:
Price 4,372 3.4%
Fuel Surcharge (5,969) -4.7%
Volume (6,102) -4.8%
Acquisition / Disposition 482 0.4%
Gain / Loss of Contracts (4,007) -3.1%
Other (303) -0.2%
Foreign currency impact (9,270) -7.2%
Total Revenue, June 30, 2009 $107,485
========
Waste Services, Inc.
Revenue Growth
For The Six Months Ended June 30, 2009
(in thousands)
Total Revenue, June 30, 2008 $244,890
Impact on revenue from changes in:
Price 7,685 3.1%
Fuel Surcharge (9,550) -3.9%
Volume (11,585) -4.7%
Acquisition / Disposition 963 0.4%
Gain / Loss of Contracts (8,796) -3.6%
Other (190) -0.1%
Foreign currency impact (20,140) -8.2%
Total Revenue, June 30, 2009 $203,277
========
COUNTRY DATA
(In thousands)
Three Months Ended
June 30, 2009
--------------------
US Canada Total
-- ------ -------
Revenue $50,737 100.0% $56,748 100.0% $107,485 100.0%
Operating expenses:
Cost of operations 31,540 62.2% 37,944 66.9% 69,484 64.6%
Selling, general
and administrative
expense 6,321 12.5% 6,419 11.3% 12,740 11.9%
Depreciation,
depletion and
amortization 6,358 12.5% 4,358 7.7% 10,716 10.0%
Foreign exchange
(gain) loss and
other 1,277 2.5% (493) -0.9% 784 0.7%
----- ---- ---
Income from continuing
operations $5,241 10.3% $8,520 15.0% $13,761 12.8%
====== ====== =======
Three Months Ended
June 30, 2008
--------------------
US Canada Total
-- ------ -------
Revenue $60,774 100.0% $67,508 100.0% $128,282 100.0%
Operating expenses:
Cost of operations 39,468 64.9% 44,137 65.4% 83,605 65.2%
Selling, general
and administrative
expense 8,309 13.7% 8,196 12.1% 16,505 12.9%
Depreciation,
depletion and
amortization 6,635 10.9% 4,985 7.4% 11,620 9.1%
Foreign exchange
gain and other (282) -0.4% (1) 0.0% (283) -0.3%
---- -- ----
Income from continuing
operations $6,644 10.9% $10,191 15.1% $16,835 13.1%
====== ======= =======
WASTE SERVICES, INC.
UNAUDITED COUNTRY DATA
(In thousands)
Six Months Ended
June 30, 2009
------------------
US Canada Total
-- ------ -------
Revenue $100,980 100.0% $102,297 100.0% $203,277 100.0%
Operating expenses:
Cost of operations 63,515 62.9% 69,177 67.6% 132,692 65.3%
Selling, general and
administrative expense
(exclusive of
restructuring,
severance and
related costs) 12,767 12.6% 13,182 12.9% 25,949 12.8%
Depreciation,
depletion and
amortization 12,722 12.6% 8,354 8.2% 21,076 10.4%
Foreign exchange gain
and other (2,197) -2.1% (329) -0.3% (2,526) -1.3%
------ ---- ------
Income from continuing
operations $14,173 14.0% $11,913 11.6% $26,086 12.8%
======= ======= =======
Six Months Ended
June 30, 2008
------------------
US Canada Total
-- ------ -------
Revenue $120,862 100.0% $124,028 100.0% $244,890 100.0%
Operating expenses:
Cost of operations 78,384 64.9% 81,765 65.9% 160,149 65.4%
Selling, general and
administrative expense
(exclusive of
severance and
related costs) 16,408 13.6% 16,461 13.3% 32,869 13.4%
Depreciation,
depletion and
amortization 13,394 11.1% 9,928 8.0% 23,322 9.6%
Foreign exchange (gain)
loss and other (482) -0.5% 25 0.0% (457) -0.2%
---- -- ----
Income from continuing
operations $13,158 10.9% $15,849 12.8% $29,007 11.8%
======= ======= =======
For more information, contact:
Executive Vice President and Chief Financial Officer
905-319-1237
or J. Todd Atenhan
Investor Relations
888-917-5105
www.wasteservicesinc.com
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