Date: April 27, 2012
Source: Progressive Waste Solutions, Ltd.
Progressive Waste Solutions Ltd. (the "Company") (TSX: BIN) (NYSE: BIN) reported
financial results for the three months ended
First quarter consolidated revenue growth of 3.6% to
Adjusted EBITDA(A) of
Reaffirms fiscal year 2012 outlook for revenue of
Management Commentary
(All amounts are in
"The results of our first quarter were in line with our expectations and our
performance is on track with our outlook for 2012. Our 2012 guidance anticipated
lower comparative first quarter results due in large part to the rollover impact
of the weak economic environment in the U.S. northeast that we faced in the
latter part of 2011. As we indicated, our plans also called for a year with
more back-end loaded special waste volumes compared with last year and, in fact,
we are already seeing more special waste activity in the second quarter of the
year," said
"Adjusted EBITDA(A) of
Mr. Quarin continued, "We are reaffirming our outlook for 2012, which includes
revenue of
Reported revenues increased
Adjusted EBITDA(A) was
Share repurchases in the quarter totalled
Other highlights for the three months ended
In
We repurchased and cancelled approximately 1.37 million common shares in the quarter. At the close of the period, there were 116.9 million common shares outstanding.
Progressive Waste Solutions Ltd. Condensed Consolidated Statements of Operations and Comprehensive Income or Loss ("Statement of Operations and Comprehensive Income or Loss") For the periods ended March 31, 2012 and 2011 (unaudited - stated in accordance with accounting principles generally accepted in the U.S. and in thousands of U.S. dollars, except share and net income or loss per share amounts) --------------------------------------------------------------------------- Three months ended --------------------------------------------------------------------------- 2012 2011 --------------------------------------------------------------------------- REVENUES $ 438,275 $ 422,850 EXPENSES OPERATING 265,341 246,805 SELLING, GENERAL AND ADMINISTRATION 59,292 58,607 RESTRUCTURING - 847 AMORTIZATION 63,654 62,819 NET GAIN ON SALE OF CAPITAL ASSETS (384) (1,423) --------------------------------------------------------------------------- OPERATING INCOME 50,372 55,195 INTEREST ON LONG-TERM DEBT 14,264 16,518 NET FOREIGN EXCHANGE LOSS (GAIN) 7 (3) NET GAIN ON FINANCIAL INSTRUMENTS (545) (1,926) OTHER EXPENSES 53 186 --------------------------------------------------------------------------- INCOME BEFORE INCOME TAX EXPENSE AND NET LOSS FROM EQUITY ACCOUNTED INVESTEE 36,593 40,420 INCOME TAX EXPENSE Current 10,425 11,698 Deferred 4,095 5,620 --------------------------------------------------------------------------- 14,520 17,318 NET LOSS FROM EQUITY ACCOUNTED INVESTEE 4 4 --------------------------------------------------------------------------- NET INCOME 22,069 23,098 --------------------------------------------------------------------------- Foreign currency translation adjustment 9,623 13,974 Derivatives designated as cash flow hedges, net of income tax ($388) (2011 - ($1,835)) 721 3,407 Settlement of derivatives designated as cash flow hedges, net of income tax ($137) (2011 - ($132)) 256 245 --------------------------------------------------------------------------- OTHER COMPREHENSIVE INCOME 10,600 17,626 --------------------------------------------------------------------------- COMPREHENSIVE INCOME $ 32,669 $ 40,724 --------------------------------------------------------------------------- --------------------------------------------------------------------------- Net income per weighted average share, basic $ 0.19 $ 0.19 Net income per weighted average share, diluted $ 0.19 $ 0.19 Weighted average number of shares outstanding (thousands), basic 117,887 121,697 Weighted average number of shares outstanding (thousands), diluted 117,887 121,697 Progressive Waste Solutions Ltd. Condensed Consolidated Balance Sheets ("Balance Sheet") March 31, 2012 (unaudited) and December 31, 2011 (stated in accordance with accounting principles generally accepted in the United States of America ("U.S.") and in thousands of U.S. dollars except issued and outstanding share amounts) --------------------------------------------------------------------------- March 31, December 31, 2012 2011 --------------------------------------------------------------------------- ASSETS CURRENT Cash and cash equivalents $ 11,000 $ 14,143 Accounts receivable 198,171 212,099 Other receivables 388 414 Prepaid expenses 37,441 31,484 Restricted cash 454 452 Other assets 4,026 1,972 --------------------------------------------------------------------------- 251,480 260,564 OTHER RECEIVABLES 291 376 FUNDED LANDFILL POST-CLOSURE COSTS 9,424 9,200 INTANGIBLES 250,396 257,731 GOODWILL 781,747 774,409 LANDFILL DEVELOPMENT ASSETS 17,318 15,869 DEFERRED FINANCING COSTS 18,427 19,983 CAPITAL ASSETS 780,477 776,058 LANDFILL ASSETS 959,899 958,792 INVESTMENT IN EQUITY ACCOUNTED INVESTEE 4,041 3,973 OTHER ASSETS 629 649 --------------------------------------------------------------------------- $ 3,074,129 $ 3,077,604 --------------------------------------------------------------------------- --------------------------------------------------------------------------- LIABILITIES CURRENT Accounts payable $ 98,922 $ 115,292 Accrued charges 105,164 124,496 Dividends payable 16,386 14,540 Income taxes payable 3,657 10,693 Deferred revenues 18,274 17,645 Current portion of long-term debt 1,500 1,500 Landfill closure and post-closure costs 8,983 9,468 Other liabilities 3,474 3,484 --------------------------------------------------------------------------- 256,360 297,118 LONG-TERM DEBT 1,351,974 1,311,593 LANDFILL CLOSURE AND POST-CLOSURE COSTS 95,406 92,034 OTHER LIABILITIES 7,352 7,484 DEFERRED INCOME TAXES 81,842 76,234 --------------------------------------------------------------------------- 1,792,934 1,784,463 --------------------------------------------------------------------------- SHAREHOLDERS' EQUITY Common shares (authorized - unlimited, issued and outstanding - 116,685,167 (December 31, 2011 - 118,040,683)) 1,802,285 1,824,231 Restricted shares (issued and outstanding - 252,150 (December 31, 2011 - 252,150)) (5,353) (5,353) Additional paid in capital 3,375 2,789 Accumulated deficit (467,961) (466,775) Accumulated other comprehensive loss (51,151) (61,751) --------------------------------------------------------------------------- Total shareholders' equity 1,281,195 1,293,141 --------------------------------------------------------------------------- $ 3,074,129 $ 3,077,604 --------------------------------------------------------------------------- --------------------------------------------------------------------------- Progressive Waste Solutions Ltd. Condensed Consolidated Statements of Cash Flows ("Statement of Cash Flows") For the periods ended March 31, 2012 and 2011 (unaudited - stated in accordance with accounting principles generally accepted in the U.S. and in thousands of U.S. dollars) --------------------------------------------------------------------------- Three months ended ---------------------------------------------------------------------------- 2012 2011 ---------------------------------------------------------------------------- NET INFLOW (OUTFLOW) OF CASH RELATED TO THE FOLLOWING ACTIVITIES OPERATING Net income $ 22,069 $ 23,098 Items not affecting cash Restricted share expense 734 174 Accretion of landfill closure and post-closure costs 1,308 1,269 Amortization of intangibles 12,928 12,164 Amortization of capital assets 33,899 32,449 Amortization of landfill assets 16,827 18,206 Interest on long-term debt (amortization of deferred financing costs) 1,690 1,353 Net gain on sale of capital assets (384) (1,423) Net gain on financial instruments (545) (1,926) Deferred income taxes 4,095 5,620 Net loss from equity accounted investee 4 4 Landfill closure and post-closure expenditures (1,534) (1,701) Changes in non-cash working capital items (25,743) (34,633) ---------------------------------------------------------------------------- Cash generated from operating activities 65,348 54,654 ---------------------------------------------------------------------------- INVESTING Acquisitions (6,544) (12,380) Restricted cash deposits (2) - Proceeds from other receivables 124 115 Funded landfill post-closure costs (86) (98) Purchase of capital assets (37,386) (15,902) Purchase of landfill assets (12,705) (9,507) Proceeds from the sale of capital assets 719 2,673 Investment in landfill development assets (2,266) (622) ---------------------------------------------------------------------------- Cash utilized in investing activities (58,146) (35,721) ---------------------------------------------------------------------------- FINANCING Payment of deferred financing costs (55) (1,020) Proceeds from long-term debt 98,941 103,483 Repayment of long-term debt (65,845) (84,816) Proceeds from the exercise of stock options 310 292 Repurchase of common shares (29,308) (23,500) Dividends paid to shareholders (14,769) (15,429) ---------------------------------------------------------------------------- Cash utilized in financing activities (10,726) (20,990) Effect of foreign currency translation on cash and cash equivalents 381 425 ---------------------------------------------------------------------------- NET CASH OUTFLOW (3,143) (1,632) ---------------------------------------------------------------------------- CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 14,143 13,406 ---------------------------------------------------------------------------- CASH AND CASH EQUIVALENTS, END OF PERIOD $ 11,000 $ 11,774 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- SUPPLEMENTAL CASH FLOW INFORMATION: Cash and cash equivalents are comprised of: Cash $ 10,998 $ 11,773 Cash equivalents 2 1 ---------------------------------------------------------------------------- $ 11,000 $ 11,774 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Cash paid during the period for: Income taxes $ 16,510 $ 15,043 Interest $ 13,844 $ 16,296 FX Impact on Consolidated Results The following table has been prepared to assist readers in assessing the FX impact on selected results for the three months ended March 31, 2012. Three months ended ---------------------------------------------------------------------------- March 31, March 31, March 31, March 31, March 31, 2011 2012 2012 2012 2012 ---------------------------------------------------------------------------- (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) ---------------------------------------------------------------------------- (organic, acquisition (holding FX and other constant non- with the (as operating comparative (as reported) changes) period) (FX impact) reported) ---------------------------------------------------------------------------- Condensed Consolidated Statement of Operations Revenues $ 422,850 $ 18,109 $ 440,959 $ (2,684) $ 438,275 Operating expenses 246,805 20,012 266,817 (1,476) 265,341 Selling, general and administration 58,607 1,073 59,680 (388) 59,292 Restructuring expenses 847 (847) - - - Amortization 62,819 1,185 64,004 (350) 63,654 Net gain on sale of capital assets (1,423) 1,037 (386) 2 (384) ---------------------------------------------------------------------------- Operating income 55,195 (4,351) 50,844 (472) 50,372 Interest on long-term debt 16,518 (2,180) 14,338 (74) 14,264 Net foreign exchange (gain) loss (3) 10 7 - 7 Net gain on financial instruments (1,926) 1,378 (548) 3 (545) Other expense 186 (132) 54 (1) 53 ---------------------------------------------------------------------------- Income before net income tax expense and net loss from equity accounted investee 40,420 (3,427) 36,993 (400) 36,593 Net income tax expense 17,318 (2,670) 14,648 (128) 14,520 Net loss from equity accounted investee 4 - 4 - 4 ---------------------------------------------------------------------------- Net income $ 23,098 $ (757) $ 22,341 $ (272) $ 22,069 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Adjusted EBITDA (A)(i) $ 123,271 $ (6,115) $ 117,156 $ (848) $ 116,308 Adjusted operating income (A)(i) $ 61,875 $ (8,336) $ 53,539 $ (501) $ 53,038 Adjusted net income (A)(i) $ 28,229 $ (3,863) $ 24,366 $ (300) $ 24,066 Free cash flow (B)(i) $ 73,240 $ (29,208) $ 44,032 $ (321) $ 43,711 Note: (i) Prior period amounts have been adjusted to conform to the current period's presentation. (ii) Please refer to the free cash flow section for further details. Other Financial Highlights (all amounts are in thousands of U.S. dollars, excluding per share amounts) Three months ended March 31 ---------------------------------------------------------------------------- 2012 2011 ---------------------------------------------------------------------------- Operating income $ 50,372 $ 55,195 Transaction and related costs - SG&A 288 315 Fair value movements in stock options - SG&A 1,644 5,344 Restricted share expense - SG&A 734 174 Restructuring expenses - 847 ---------------------------------------------------------------------------- Adjusted operating income 53,038 61,875 ---------------------------------------------------------------------------- Net gain on sale of capital assets (384) (1,423) Amortization 63,654 62,819 ---------------------------------------------------------------------------- Adjusted EBITDA $ 116,308 $ 123,271 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Net income $ 22,069 $ 23,098 Transaction and related costs - SG&A 288 315 Fair value movements in stock options - SG&A 1,644 5,344 Restricted share expense - SG&A 734 174 Restructuring expenses - 847 Net gain on financial instruments (545) (1,926) Other expenses 53 186 Net income tax expense or (recovery) (177) 191 ---------------------------------------------------------------------------- Adjusted net income $ 24,066 $ 28,229 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Adjusted net income per weighted average share, basic(A)(i) $ 0.20 $ 0.23 Adjusted net income per weighted average share, diluted(A)(i) $ 0.20 $ 0.23 Replacement and growth expenditures Replacement expenditures $ 36,374 $ 18,042 Growth expenditures 13,717 7,367 ---------------------------------------------------------------------------- Total replacement and growth expenditures $ 50,091 $ 25,409 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Free cash flow(B) Cash generated from operating activities (statement of cash flows) $ 65,348 $ 54,654 Free cash flow(B) $ 43,711 $ 73,240 Free cash flow(B)per weighted average share, diluted $ 0.37 $ 0.60 Dividends Dividends declared (common shares) $ 16,351 $ 15,305 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Note: (i)Prior period amounts have been adjusted to conform to the current period's presentation. Segment Highlights - Additional details regarding the FX impact on our comparative results can be found in the Foreign Currency sections of this report. (all amounts are in thousands of U.S. dollars, unless otherwise stated) Three months ended March 31 ---------------------------------------------------------------------------- 2011 2012 Change 2012 Change ---------------------------------------------------------------------------- (holding FX constant with the (as comparative (as reported) period) reported) ---------------------------------------------------------------------------- Revenues $ 422,850 $ 440,959 $ 18,109 $ 438,275 $ 15,425 ---------------------------------------------------------------------------- Canada $ 171,920 $ 176,602 $ 4,682 $ 173,918 $ 1,998 U.S. south $ 168,175 $ 187,407 $ 19,232 $ 187,407 $ 19,232 U.S. northeast $ 82,755 $ 76,950 $ (5,805) $ 76,950 $ (5,805) Operating expenses $ 246,805 $ 266,817 $ 20,012 $ 265,341 $ 18,536 ---------------------------------------------------------------------------- Canada $ 92,629 $ 97,114 $ 4,485 $ 95,638 $ 3,009 U.S. south $ 100,282 $ 116,130 $ 15,848 $ 116,130 $ 15,848 U.S. northeast $ 53,894 $ 53,573 $ (321) $ 53,573 $ (321) SG&A (as reported) $ 58,607 $ 59,680 $ 1,073 $ 59,292 $ 685 ---------------------------------------------------------------------------- Canada $ 15,584 $ 16,159 $ 575 $ 15,914 $ 330 U.S. south $ 16,783 $ 19,599 $ 2,816 $ 19,599 $ 2,816 U.S. northeast $ 8,147 $ 7,997 $ (150) $ 7,997 $ (150) Corporate $ 18,093 $ 15,925 $ (2,168) $ 15,782 $ (2,311) EBITDA(A)(as reported) $ 117,438 $ 114,462 $ (2,976) $ 113,642 $ (3,796) ---------------------------------------------------------------------------- Canada $ 63,707 $ 63,329 $ (378) $ 62,366 $ (1,341) U.S. south $ 51,110 $ 51,678 $ 568 $ 51,678 $ 568 U.S. northeast $ 20,714 $ 15,380 $ (5,334) $ 15,380 $ (5,334) Corporate $ (18,093) $ (15,925)$ 2,168 $ (15,782)$ 2,311 Adjusted SG&A $ 52,774 $ 56,986 $ 4,212 $ 56,626 $ 3,852 ---------------------------------------------------------------------------- Canada $ 15,584 $ 16,159 $ 575 $ 15,914 $ 330 U.S. south $ 16,783 $ 19,599 $ 2,816 $ 19,599 $ 2,816 U.S. northeast $ 8,147 $ 7,997 $ (150) $ 7,997 $ (150) Corporate $ 12,260 $ 13,231 $ 971 $ 13,116 $ 856 Adjusted EBITDA(A) $ 123,271 $ 117,156 $ (6,115) $ 116,308 $ (6,963) ---------------------------------------------------------------------------- Canada $ 63,707 $ 63,329 $ (378) $ 62,366 $ (1,341) U.S. south $ 51,110 $ 51,678 $ 568 $ 51,678 $ 568 U.S. northeast $ 20,714 $ 15,380 $ (5,334) $ 15,380 $ (5,334) Corporate $ (12,260) $ (13,231)$ (971) $ (13,116)$ (856) Revenues Gross revenue by service type The table below presents gross revenue by service type prepared on a consolidated basis and includes the impact of FX. Three months ended ---------------------------------------------------------------------------- 2012 % 2011 % ---------------------------------------------------------------------------- Commercial $ 162,362 37.0 $ 154,544 36.5 Industrial 76,565 17.5 75,643 17.9 Residential 101,489 23.2 90,795 21.5 Transfer and disposal 140,866 32.1 141,553 33.5 Recycling and other 22,141 5.1 22,091 5.2 ---------------------------------------------------------------------------- Gross revenues 503,423 114.9 484,626 114.6 Intercompany (65,148) (14.9) (61,776) (14.6) ---------------------------------------------------------------------------- Revenues $ 438,275 100.0 $ 422,850 100.0 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Revenue growth or decline components - expressed in percentages and excluding FX The table below has been prepared using reported revenues for 2012 and gross revenues for 2011. The table has also been prepared assuming Canadian and U.S. dollar parity. For 2011, the amounts are presented as if Waste Services, Inc.'s operations were combined with ours for the three months ended March 31, 2010. Three months ended ---------------------------------------------------------------------------- 2012 2011(i) ---------------------------------------------------------------------------- Price Core price 1.0 1.7 Fuel surcharges 0.8 1.0 Recycling and other (1.2) 0.6 ---------------------------------------------------------------------------- Total price growth 0.6 3.3 Volume (0.9) 0.6 ---------------------------------------------------------------------------- Total organic (decline) growth (0.3) 3.9 Acquisitions 4.6 7.0 ---------------------------------------------------------------------------- Total growth excluding FX 4.3 10.9 FX (0.7) ------------------------------------------------------------- Total growth including FX 3.6 ------------------------------------------------------------- ------------------------------------------------------------- Note: (i)Prior period amounts have been adjusted to conform to the current period's presentation. Free cash flow(B) Purpose and objective The purpose of presenting this non-GAAP measure is to provide similar disclosures presented 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 relative performance to our peers and to assess the availability of funds for growth investment, share repurchases, debt repayment or dividend increases. Free cash flow(B) - cash flow approach Three months ended March 31 ---------------------------------------------------------------------------- 2012(i) 2011 Change ---------------------------------------------------------------------------- Cash generated from operating activities $ 65,348 $ 54,654 $ 10,694 ---------------------------------------------------------------------------- Operating and investing Stock option expense 1,644 5,344 (3,700) Acquisition and related costs 288 315 (27) Restructuring expenses - 847 (847) Other expenses 53 186 (133) Changes in non-cash working capital items 25,743 34,633 (8,890) Capital and landfill asset purchases (50,091) (25,409) (24,682) Proceeds from the sale of capital assets 719 2,673 (1,954) Financing Net realized foreign exchange loss (gain) 7 (3) 10 ---------------------------------------------------------------------------- Free cash flow(B) $ 43,711 $ 73,240 $ (29,529) ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Note: (i)Capital and landfill asset purchases include infrastructure expenditures of approximately $3,600. Free cash flow(B)- adjusted EBITDA(A) approach We typically calculate free cash flow(B) using an operations approach which is similar to the calculation required by our Canadian and U.S. facilities. Three months ended March 31 ---------------------------------------------------------------------------- 2012(i) 2011 Change ---------------------------------------------------------------------------- Adjusted EBITDA(A) $ 116,308 $ 123,271 $ (6,963) ---------------------------------------------------------------------------- Capital and landfill asset purchases (50,091) (25,409) (24,682) Proceeds from the sale of capital assets 719 2,673 (1,954) Landfill closure and post- closure expenditures (1,534) (1,701) 167 Landfill closure and post- closure cost accretion expense 1,308 1,269 39 Interest on long-term debt (14,264) (16,518) 2,254 Non-cash interest expense 1,690 1,353 337 Current income tax expense (10,425) (11,698) 1,273 ---------------------------------------------------------------------------- Free cash flow(B) $ 43,711 $ 73,240 $ (29,529) ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Note: (i)Capital and landfill asset purchases include infrastructure expenditures of approximately $3,600. Long-term debt to adjusted EBITDA(A) Our adjusted EBITDA(A) ratio prepared on a combined basis, assuming FX parity, is 2.57 times. Foreign Currency (in thousands of U.S. dollars unless otherwise stated)
We have elected to report our financial results in U.S. dollars. However, we
earn a significant portion of our revenues and earnings in
2012 2011
----------------------------------------------------------------------------
Condensed Condensed
Consolidated Consolidated
Condensed Statement of Condensed Statement of
Consolidated Operations and Consolidated Operations and
Balance Comprehensive Income Balance Comprehensive Income
Sheet or Loss Sheet or Loss
----------------------------------------------------------------------------
Cumulative Cumulative
Current Average Average Current Average Average
----------------------------------------------------------------------------
December 31 $ 0.9833 $ 1.0109
March 31 $ 1.0009 $ 0.9988 $ 0.9988 $ 1.0290 $ 1.0142 $ 1.0142
Quarterly dividend declared
The Company's Board of Directors declared a quarterly dividend of
Definitions of Adjusted EBITDA and Free cash flow
(A) All references to "Adjusted EBITDA" in this document are to revenues less operating expense and SG&A, excluding certain non-operating or non-recurring SG&A expense, on the consolidated statement of operations and comprehensive income or loss. Adjusted EBITDA excludes some or all of the following: certain SG&A expenses, restructuring expenses, goodwill impairment, 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 goodwill impairment, 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, fair value adjustments attributable to stock options, restricted share expense and a non-recurring one-time charge resulting from the non-renewal of the Company's former Vice Chairman and Chief Executive Officer's agreement. 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.
Goodwill impairment - as a non-cash item goodwill impairment has no impact on the determination of free cash flow (B).
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).
(B) We have adopted a measure called "free cash flow" to supplement net income or loss as a measure of our 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 shares repurchased, and may not be comparable to similar measures prepared by other companies. The purpose of presenting this non-GAAP measure is to provide disclosure similar to the disclosure 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. All references to "free cash flow" in this document have the meaning set out in this note.
About
As
To find out more about
---------------------------------------------------------------------------- Management will hold a conference call onFriday, April 27, 2012, at 8:30 a.m. (ET) to discuss results for the three months ended March 31, 2012. Participants may listen to the call by dialing 1-888-300-0053, conference ID 68190909, at approximately 8:20 a.m. (ET). International or local callers should dial 647-427-3420. The call will also be webcast live at www.streetevents.com and at www.progressivewaste.com. A supplemental slide presentation will be available at www.progressivewaste.com. A replay will be available after the call until Friday, May 11, 2012, at midnight, and can be accessed by dialing 1-855-859-2056, conference ID 68190909. International or local callers can access the replay by dialing 404-537-3406. The audio webcast will also be archived at www.streetevents.com and www.progressivewaste.com. ----------------------------------------------------------------------------
For more information, contact:
(905) 532-7517
chaya.cooperberg@progressivewaste.com.
www.progressivewaste.com.
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