HOUSTON, July 29, 2009 (GLOBE NEWSWIRE) -- WCA Waste Corporation (Nasdaq:WCAA) announced today financial results for the second quarter ended June 30, 2009. Revenue for the quarter was $50.2 million compared to $52.7 million for the same period last year. Operating income was $6.7 million compared to $6.5 million for the comparable quarter last year. For the quarter ended June 30, 2009, net loss available to common stockholders was $0.2 million, or $0.01 per share. Excluding the non-operational impact of the interest rate swap, the non-cash tax impact of vested restricted shares and the non-recurring expenses associated with a terminated transaction, net income available to common stockholders would have been $0.3 million, or $0.02 per share. For the same period last year, the Company reported net income available to common stockholders of $1.9 million, or $0.11 per share. Excluding the non-operational impact of the interest rate swap, the non-cash tax impact of vested restricted shares and loss on early disposition of note receivable, net income available to common shareholders would have been $0.2 million, or $0.01 per share, for the three months ended June 30, 2008. Please refer to the attached tables below for reconciliation between net income (loss) available to common stockholders and adjusted net income (loss) available to common stockholders.
For the six months ended June 30, 2009, revenue was $98.4 million compared to $101.6 million for the same period last year. Implementation of cost reduction measures combined with lower fuel costs increased operating income by 13.9% over the same period last year. Operating income was $13.2 million, or 13.4% of revenue, for the six months ended June 30, 2009 compared to $11.6 million, or 11.4% of revenue, for the six months ended June 30, 2008.
Tom Fatjo, Chairman of WCA Waste Corporation, stated, "We are pleased with our operating results reported for the quarter. After excluding the non-operational expenses, EBITDA was $13.9 million, or 27.6% of revenue, for the second quarter of 2009 as compared to $13.6 million, or 25.7% of revenue, for the same period in 2008. The higher EBITDA margin was achieved even though revenue was down $2.6 million quarter over quarter. We are excited about several new prospective contracts and acquisition opportunities that exist both in our current footprint and in new market areas."
WCA Waste Corporation is an integrated company engaged in the transportation, processing and disposal of non-hazardous solid waste. The Company's operations currently consist of 24 landfills, 23 transfer stations/material recovery facilities and 26 collection operations located throughout Alabama, Arkansas, Colorado, Florida, Kansas, Missouri, New Mexico, North Carolina, Oklahoma, South Carolina, Tennessee and Texas. The Company's common stock is traded on the NASDAQ Global Market under the symbol "WCAA."
The WCA Waste Corporation logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=1736
RISK FACTORS AND CAUTIONARY STATEMENTS REGARDING FORWARD-LOOKING STATEMENTS
This press release and other communications, such as conference calls, presentations, statements in public filings, other press releases, include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities and Exchange Act of 1934. Forward-looking statements generally include discussions and descriptions other than historical information. The forward-looking statements made herein are only made as of the date of this press release and we undertake no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.
Our results will be subject to a number of operational and other risks, including the following: general economic conditions have impacted and may continue to impact our business; we may not be successful in expanding the permitted capacity of our current or future landfills; our business is capital intensive, requiring ongoing cash outlays that may strain or consume our available capital; increases in the costs of disposal, labor and fuel could reduce operating margins; increases in costs of insurance or failure to maintain full coverage could reduce operating income; we may be unable to obtain financial assurances necessary for our operations; we are subject to environmental and safety laws, which restrict our operations and increase our costs, and may impose significant unforeseen liabilities; we compete with large companies and municipalities with greater financial and operational resources, and we also compete with alternatives to landfill disposal; covenants in our credit facilities and the instruments governing our other indebtedness may limit our ability to grow our business and make capital expenditures; changes in interest rates may affect our results of operations; a downturn in U.S. economic conditions or the economic conditions in our markets may have an adverse impact on our business and results of operations; our success depends on key members of our senior management, the loss of any of whom could disrupt our customer and business relationships and our operations; and we are subject to risks with respect to our acquisition activities.
We describe these and other risks in greater detail in the sections entitled "Risk Factors" and "--Cautionary Statement about Forward-Looking Statements" included in our Form 10-K for the year ended December 31, 2008, to which we refer you for additional information.
WCA -- 2nd Quarter 2009 Earnings Release Information
WCA Waste Corporation
Condensed Consolidated Statements of Operations
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
------------------ ------------------
2009 2008 2009 2008
-------- -------- -------- --------
Revenue $ 50,174 $ 52,746 $ 98,364 $101,583
Expenses:
Cost of services 33,184 36,581 65,121 70,634
Depreciation and amortization 6,841 6,909 13,373 13,400
Non-recurring expenses
associated with a terminated
transaction 259 -- 259 --
General and administrative 3,145 2,705 6,395 5,943
-------- -------- -------- --------
43,429 46,195 85,148 89,977
-------- -------- -------- --------
Operating income 6,745 6,551 13,216 11,606
Other income (expense):
Interest expense, net (4,555) (4,609) (9,014) (9,143)
Impact of interest rate swap (465) 3,693 (843) (907)
Other 16 (233) 45 (232)
-------- -------- -------- --------
(5,004) (1,149) (9,812) (10,282)
-------- -------- -------- --------
Income before income taxes 1,741 5,402 3,404 1,324
Income tax provision (908) (2,526) (2,007) (800)
-------- -------- -------- --------
Net income 833 2,876 1,397 524
Accrued payment-in-kind
dividend on preferred stock (1,062) (1,011) (2,116) (2,016)
-------- -------- -------- --------
Net income (loss) available to
common stockholders $ (229) $ 1,865 $ (719) $ (1,492)
======== ======== ======== ========
PER SHARE DATA (Basic and
diluted):
Net income (loss) available to
common stockholders
- Basic $ (0.01) $ 0.11 $ (0.05) $ (0.09)
======== ======== ======== ========
- Diluted $ (0.01) $ 0.11 $ (0.05) $ (0.09)
======== ======== ======== ========
WEIGHTED AVERAGE SHARES
OUTSTANDING (Basic) 15,810 16,479 15,776 16,515
-------- -------- -------- --------
WEIGHTED AVERAGE SHARES
OUTSTANDING (Diluted) 15,810 16,956 15,776 16,552
-------- -------- -------- --------
Non-GAAP Financial Measures
---------------------------------------------------------------------
Our management evaluates our performance based on non-GAAP measures,
of which the primary performance measure is EBITDA. EBITDA consists
of earnings (net income or loss) available to common stockholders
before preferred stock dividend, interest expense (including
write-off of deferred financing costs and debt discount), impact of
interest rate swap agreements, income tax expense, depreciation and
amortization, impairment of goodwill, net (gain) loss on early
disposition of notes receivable/payable, and non-recurring expenses
associated with a terminated transaction. We also use these same
measures when evaluating potential acquisition candidates.
We believe EBITDA is useful to an investor in evaluating our
operating performance because:
* it is widely used by investors in our industry to measure a
company's operating performance without regard to items such as
interest expense, depreciation and amortization, which can vary
substantially from company to company depending upon accounting
methods and book value of assets, financing methods, capital
structure and the method by which assets were acquired;
* it helps investors more meaningfully evaluate and compare the
results of our operations from period to period by removing the
impact of our capital structure (primarily interest charges from
our outstanding debt and the impact of our interest rate swap
agreements and payment-in-kind dividend) and asset base
(primarily depreciation and amortization of our landfills and
vehicles) from our operating results; and
* it helps investors identify items that are within our operational
control. Depreciation charges, while a component of operating
income, are fixed at the time of the asset purchase in accordance
with the depreciable lives of the related asset and as such are not
a directly controllable period operating charge.
Our management uses EBITDA:
* as a measure of operating performance because it assists us in
comparing our performance on a consistent basis as it removes the
impact of our capital structure and asset base from our operating
results;
* as one method to estimate a purchase price (often expressed as a
multiple of EBITDA) for solid waste companies we intend to
acquire. The appropriate EBITDA multiple will vary from acquisition
to acquisition depending on factors such as the size of the
operation, the type of operation, the anticipated growth in the
market, the strategic location of the operation in its market as
well as other considerations;
* in presentations to our board of directors to enable them to have
the same consistent measurement basis of operating performance
used by management;
* as a measure for planning and forecasting overall expectations and
for evaluating actual results against such expectations;
* in evaluations of field operations since it represents operational
performance and takes into account financial measures within the
control of the field operating units;
* as a component of incentive cash bonuses paid to our executive
officers and other employees;
* to assess compliance with financial ratios and covenants included
in our credit agreements; and
* in communications with investors, lenders, and others concerning
our financial performance.
The following presents a reconciliation of net income (loss)
available to common stockholders to our total EBITDA (in thousands):
Three Months Ended Six Months Ended
June 30, June 30,
------------------ ------------------
2009 2008 2009 2008
-------- -------- -------- --------
Net income (loss) available to
common stockholders $ (229) $ 1,865 $ (719) $ (1,492)
Accrued payment-in-kind
dividend on preferred stock 1,062 1,011 2,116 2,016
Depreciation and amortization 6,841 6,909 13,373 13,400
Non-recurring expenses
associated with a terminated
transaction 259 -- 259 --
Interest expense, net 4,555 4,609 9,014 9,143
Impact of interest rate swap 465 (3,693) 843 907
Loss on early disposition of
note receivable -- 326 -- 326
Income tax provision 908 2,526 2,007 800
-------- -------- -------- --------
Total EBITDA $ 13,861 $ 13,553 $ 26,893 $ 25,100
======== ======== ======== ========
As a percentage of revenue 27.6% 25.7% 27.3% 24.7%
The following table presents a reconciliation of net income (loss)
available to common stockholders to adjusted net income (loss)
available to common stockholders to exclude impact of interest rate
swap agreements, non-recurring expenses associated with a terminated
transaction, loss on early disposition of note receivable, and tax
impact of vested restricted shares (in thousands, except per share
amounts). Management believes that this non-GAAP measure is useful to
an investor because the excluded items are not representative of our
on-going operational performance. Per share information of the
adjusted net income (loss) available to common stockholders is also
shown below:
Adjusted net income (loss)
available to common
stockholders to exclude impact
of interest rate swap
agreements, non-recurring
expenses associated with a
terminated transaction, loss
on early disposition of note Three Months Ended Six Months Ended
receivable, tax impact of June 30, June 30,
vested restricted shares: ------------------ ------------------
2009 2008 2009 2008
-------- -------- -------- --------
Net income (loss) available to
common stockholders $ (229) $ 1,865 $ (719) $ (1,492)
Impact of interest rate swap,
net of tax 283 (1,945) 504 534
Non-recurring expenses
associated with a terminated
transaction, net of tax 157 -- 157 --
Loss on early disposition of
note receivable, net of tax -- 194 -- 194
Tax impact of vested restricted
shares 93 55 470 158
-------- -------- -------- --------
Adjusted net income (loss)
available to common
stockholders $ 304 $ 169 $ 412 $ (606)
======== ======== ======== ========
PER SHARE DATA (Basic and
diluted):
Net income (loss) available to
common stockholders $ (0.01) $ 0.11 $ (0.05) $ (0.09)
Impact of interest rate swap,
net of tax 0.01 (0.12) 0.04 0.03
Non-recurring expenses
associated with a terminated
transaction, net of tax 0.01 -- 0.01 --
Loss on early disposition of
note receivable, net of tax -- 0.01 -- 0.01
Tax impact of vested restricted
shares 0.01 0.01 0.03 0.01
-------- -------- -------- --------
Adjusted net income (loss)
available to common
stockholders to exclude impact
of interest rate swap
agreements, non-recurring
expenses associated with a
terminated transaction, loss
on early disposition of note
receivable, tax impact of
vested restricted shares:
- Basic $ 0.02 $ 0.01 $ 0.03 $ (0.04)
======== ======== ======== ========
- Diluted $ 0.02 $ 0.01 $ 0.03 $ (0.04)
======== ======== ======== ========
WEIGHTED AVERAGE SHARES
OUTSTANDING (Basic) 15,810 16,479 15,776 16,515
-------- -------- -------- --------
WEIGHTED AVERAGE SHARES
OUTSTANDING (Diluted) 15,831 16,553 15,827 16,552
-------- -------- -------- --------
These non-GAAP measures may not be comparable to similarly titled
measures employed by other companies and are not measures of
performance calculated in accordance with GAAP. They should not be
considered in isolation or as substitutes for operating income, net
income or loss, cash flows provided by operating, investing and
financing activities, or other income or cash flow statement data
prepared in accordance with GAAP.
Supplemental Disclosures
---------------------------------------------------------------------
(Dollars in millions unless otherwise indicated)
Six Months Ended Six Months Ended
June 30, 2009 June 30, 2008
------------------ ------------------
Revenue Breakdown:
Collection $ 63.4 54.2% $ 63.8 51.5%
Disposal 35.6 30.4% 37.4 30.3%
Transfer 13.6 11.6% 15.5 12.5%
Other 4.4 3.8% 7.1 5.7%
-------- -------- -------- --------
Total 117.0 100.0% 123.8 100.0%
Intercompany eliminations (18.6) (22.2)
-------- --------
Total reported revenue $ 98.4 $ 101.6
======== ========
Internalization of Disposal:
Six months ended June 30, 2009 68.9%
---------------------------------------------------------------------
Three Months Ended Six Months Ended
June 30, 2009 June 30, 2009
vs. 2008 vs. 2008
------------------ ------------------
Revenue Growth (Decline):
Volume $ (3.6) -6.9%(a) $ (7.9) -7.8%(a)
Price 1.1 2.2%(a) 3.4 3.4%(a)
Fuel surcharge (1.7) -3.3%(a) (2.0) -2.0%(a)
Acquisitions 1.6 3.1%(a) 3.3 3.2%(a)
-------- ------ -------- ------
Total revenue growth
(decline) $ (2.6) -4.9%(a) $ (3.2) -3.2%(a)
======== ========
(a) Percentages are calculated based on dollar amounts rounded in
thousands.
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June 30, 2009
-----------------
Debt-to-Capitalization:
Long-term debt including current maturities $ 209.4
Total equity including preferred stock 141.6
---------
Total capitalization $ 351.0
=========
Debt-to-total capitalization 59.7%
Net Debt-to-Capitalization:
Long-term debt including current maturities $ 209.4
Cash on hand (11.1)
---------
Net debt 198.3
Total equity including preferred stock 141.6
---------
Total capitalization $ 339.9
=========
Net debt-to-total capitalization 58.3%