Date: October 27, 2009
Source: Waste Services, Inc.
EPS Almost Doubles From $0.08 in 2008 to $0.15 in the Third Quarter of 2009
Waste Services, Inc. (Nasdaq: WSII) today announced financial results for the third quarter ended
Excluding recycled commodity sales, net of commodity surcharges, core internal revenue growth from price was 5.0%.
Internal revenue relating to volume declined by
Foreign currency translation accounted for
For the nine month period ended
Excluding recycled commodity sales, net of commodity surcharges, core internal revenue growth from price was 4.3%.
Internal revenue relating to volume declined by
Foreign currency translation accounted for
Foreign currency translation unfavorably impacted EPS by approximately
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 For The Nine
Months Ended Months Ended
September 30, September 30,
------------- -------------
2009 2008 2009 2008
---- ---- ---- ----
Income from continuing
operations $6,717 $3,469 $14,173 $12,830
Income tax provision 3,682 5,322 8,837 6,927
Change in fair
value of warrants (688) - (2,103) -
Interest expense 7,528 7,730 22,418 25,770
Depreciation, depletion
and amortization 10,940 11,503 32,016 34,826
------ ------ ------ ------
EBITDA from continuing
operations (1) $28,179 $28,024 $75,341 $80,353
======= ======= ======= =======
The following table reconciles the differences between EBITDA from continuing operations and Adjusted EBITDA from continuing operations for the three and nine months ended
For The Three For The Nine
Months Ended Months Ended
September 30, September 30,
------------- -------------
2009 2008 2009 2008
---- ---- ---- ----
EBITDA from continuing
operations (1) $28,179 $28,024 $75,341 $80,353
Adjustments to EBITDA from
continuing operations
(as defined per credit agreement):
Loss (gain) on sale of assets (78) (8) (2,430) (522)
Non-cash items (2) 412 938 1,901 2,995
Other excludable expenses (3) - - 88 -
------- ------- ------- -------
Adjusted EBITDA from continuing
operations (1) $28,513 $28,954 $74,900 $82,826
======= ======= ======= =======
(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.
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
WASTE SERVICES, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
------------- -------------
2009 2008 2009 2008
---- ---- ---- ----
Revenue $112,461 $125,745 $315,738 $370,635
Operating and other expenses:
Cost of operations
(exclusive of
depreciation,
depletion and amortization) 71,204 82,512 203,896 242,661
Selling, general and
administrative expense
(exclusive of
depreciation,
depletion and
amortization) 13,085 15,074 39,034 47,943
Depreciation,
depletion and
amortization 10,940 11,503 32,016 34,826
Loss (gain) on sale of property
and equipment, foreign exchange
and other (7) 135 (2,533) (322)
-- --- ------ ----
Income from operations 17,239 16,521 43,325 45,527
Interest expense 7,528 7,730 22,418 25,770
Change in fair value of
warrants (688) - (2,103) -
---- ---- ------ ----
Income from continuing
operations before income taxes 10,399 8,791 23,010 19,757
Income tax provision 3,682 5,322 8,837 6,927
----- ----- ----- -----
Income from continuing
operations 6,717 3,469 14,173 12,830
Income from discontinued
operations, net of income
tax provision of $266 for
the nine months ended
September 30, 2008 - - - 409
Gain on sale of discontinued
operations, net of income tax
provision of $4,485 for the
nine months ended September
30, 2008 - - - 6,869
----- ----- ----- -----
Net income $6,717 $3,469 $14,173 $20,108
====== ====== ======= =======
Basic and diluted
earnings per
share:
Earnings per share -
continuing operations $0.15 $0.08 $0.31 $0.28
Earnings per share -
discontinued
operations - - - 0.16
----- ----- ----- -----
Earnings per share -
basic and diluted $0.15 $0.08 $0.31 $0.44
===== ===== ===== =====
Weighted average common
shares outstanding:
Basic 46,253 46,079 46,206 46,076
Diluted 46,302 46,088 46,231 46,085
WASTE SERVICES, INC.
SUPPLEMENTAL UNAUDITED BALANCE SHEET AND CASH FLOW DATA
(In thousands)
Balance Sheet Data: September 30, December 31,
2009 2008
---- ----
Cash $3,209 $7,227
Current assets $70,548 $72,961
Total assets $870,792 $840,927
Current liabilities $99,070 $93,245
Debt:
Senior secured credit facilities:
US Revolver $- $34,600
Canadian Revolver 5,604 27,699
US Term loan 36,902 38,125
Canadian Term Loan 113,962 103,505
Senior subordinated notes 208,520 158,854
Other notes 8,291 9,286
----- -----
Total debt $373,279 $372,069
-------- --------
Shareholders' equity $356,732 $335,018
Cash Flow Data:
Nine Months Ended
September 30,
-----------------
2009 2008
---- ----
Net cash flows provided by continuing
operations $47,154 $48,923
Net cash flows provided by (used in)
investing activities for continuing
operations $(34,761) $14,619
Net cash flows used in financing
activities of continuing operations $(17,903) $(43,537)
Capital expenditures from continuing
operations $24,413 $39,220
WASTE SERVICES, INC.
SUPPLEMENTAL UNAUDITED GROWTH RATES AND COUNTRY DATA
(In thousands)
Waste Services, Inc. Waste Services, Inc.
Revenue Growth Revenue Growth
For The Three Months Ended For The Nine Months Ended
September 30, 2009 September 30, 2009
(in thousands) (in thousands)
Total Revenue, Total Revenue,
September 30, September 30,
2008 $125,745 2008 $370,635
Impact on Impact on
revenue from revenue from
changes in: changes in:
Price 5,981 4.8% Price 13,641 3.7%
Fuel Surcharge (5,279) -4.2% Fuel Surcharge (14,840) -4.0%
Volume (7,130) -5.7% Volume (19,293) -5.2%
Acquisition / Acquisition /
Disposition 188 0.1% Disposition 1,168 0.3%
Gain / Loss of Gain / Loss of
Contracts (2,496) -2.0% Contracts (10,634) -2.9%
Other (322) -0.2% Other (583) -0.1%
Foreign Foreign
currency currency
impact (4,226) -3.4% impact (24,356) -6.6%
Total Revenue, Total Revenue,
September 30, -------- September 30, --------
2009 $112,461 2009 $315,738
======== ========
COUNTRY DATA
(In thousands)
Three Months Ended September 30, 2009
---------------------------------------
US Canada Total
-- ------ -------
Revenue $50,821 100.0% $61,640 100.0% $112,461 100.0%
Operating expenses:
Cost of operations 30,833 60.7% 40,371 65.5% 71,204 63.3%
Selling, general and
administrative
expense 6,155 12.1% 6,930 11.2% 13,085 11.6%
Depreciation,
depletion and
amortization 6,317 12.4% 4,623 7.5% 10,940 9.8%
Foreign exchange
(gain) loss and
other (76) -0.1% 69 0.1% (7) 0.0%
--- -- --
Income from continuing
operations $7,592 14.9% $9,647 15.7% $17,239 15.3%
====== ====== =======
Three Months Ended September 30, 2008
---------------------------------------
US Canada Total
-- ------ -------
Revenue $58,468 100.0% $67,277 100.0% $125,745 100.0%
Operating expenses:
Cost of operations 38,114 65.2% 44,398 66.0% 82,512 65.6%
Selling, general and
administrative
expense 7,647 13.1% 7,427 11.0% 15,074 12.0%
Depreciation,
depletion and
amortization 6,509 11.1% 4,994 7.4% 11,503 9.1%
Foreign exchange
gain and other 20 0.0% 115 0.2% 135 0.2%
-- --- ---
Income from continuing
operations $6,178 10.6% $10,343 15.4% $16,521 13.1%
====== ======= =======
WASTE SERVICES, INC.
UNAUDITED COUNTRY DATA
(In thousands)
Nine Months Ended September 30, 2009
--------------------------------------
US Canada Total
-- ------ -------
Revenue $151,801 100.0% $163,937 100.0% $315,738 100.0%
Operating
expenses:
Cost of
operations 94,348 62.2% 109,548 66.8% 203,896 64.6%
Selling,
general and
adminis-
trative
expense 18,922 12.5% 20,112 12.3% 39,034 12.4%
Depreciation,
depletion and
amortization 19,039 12.5% 12,977 7.9% 32,016 10.1%
Gain on sale
of property
and equipment,
foreign
exchange and
other (2,273) -1.5% (260) -0.2% (2,533) -0.8%
------ ---- ------
Income from
continuing
operations $21,765 14.3% $21,560 13.2% $43,325 13.7%
======= ======= =======
Nine Months Ended September 30, 2008
--------------------------------------
US Canada Total
-- ------ -------
Revenue $179,331 100.0% $191,304 100.0% $370,635 100.0%
Operating
expenses:
116,497 65.0% 126,164 65.9% 242,661 65.5%
Selling,
general and
adminis-
trative
expense 24,055 13.4% 23,888 12.5% 47,943 12.9%
Depreciation,
depletion and
amortization 19,903 11.1% 14,923 7.8% 34,826 9.4%
Foreign
exchange
(gain) loss
and other (463) -0.3% 141 0.1% (322) -0.1%
---- --- ----
Income from
continuing
operations $19,339 10.8% $26,188 13.7% $45,527 12.3%
======= ======= =======
For more information, contact:
Edwin D. Johnson
Waste Services, Inc.
Executive Vice President and Chief Financial Officer
905-319-1237, or
J. Todd Atenhan
Investor Relations
888-917-5105
Sign up to receive our free Weekly News Bulletin