- Strong core price growth of 4.1%.
- Adjusted EBITDA of $25.8 million for the quarter.
- 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 $0.10, consistent with the Company's plan.
- Reaffirms adjusted earnings per share(1) guidance of $0.38 to $0.40 for 2009, based on current interest and exchange rate levels.
BURLINGTON, Ontario, July 21 /PRNewswire-FirstCall/ -- Waste Services, Inc. (Nasdaq: WSII) today announced financial results for the second quarter ended June 30, 2009. On an adjusted basis, fully diluted earnings per share were $0.100 for the quarter as compared to $0.125 in the second quarter of 2008. Revenue for the quarter was $107.5 million compared to $128.3 million for the same quarter in 2008. Reported income from continuing operations before taxes for the quarter was $6.0 million as compared to income in the comparative period of $9.0 million. The results for the quarter are highlighted by:
- Internal revenue growth from price was $4.4 million or 3.4%, and the decline in fuel surcharge was $6.0 million or 4.7%.
- Excluding recycled commodity sales, net of commodity surcharges, core internal revenue growth from price was 4.1%.
- Internal revenue relating to volume declined by $6.1 million or 4.8%.
- Foreign currency translation accounted for $9.3 million or a 7.2% reduction in revenue and the net expiration of municipal contracts accounted for a decline of $4.0 million or 3.1% of revenue.
For the six month period ended June 30, 2009, fully diluted adjusted earnings per share were $0.131 as compared to $0.152 in the corresponding period of 2008. Revenue for the period was $203.3 million compared to $244.9 million in 2008. Reported income from continuing operations before taxes for the period was $12.6 million as compared to income in the comparative period of $11.0 million. The results for the six month period ended June 30, 2009 are highlighted by:
- Internal revenue growth from price was $7.7 million or 3.1%, and the decline in fuel surcharge was $9.6 million or 3.9%.
- Excluding recycled commodity sales, net of commodity surcharges, core internal revenue growth from price was 4.0%.
- Internal revenue relating to volume declined by $11.6 million or 4.7%.
- Foreign currency translation accounted for $20.1 million or a 8.2% reduction in revenue and the net expiration of municipal contracts accounted for a decline of $8.8 million or 3.6% of revenue.
(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).
David Sutherland-Yoest, Waste Services President and Chief Executive Officer, stated, "We are pleased to report that we are on track to meet our full year guidance for adjusted earnings per share of $0.38 to $0.40 and that we have continued to perform well in the recessionary environment. We have managed our costs and raised prices to offset declines in revenue and volume, improving margins and positioning the company for strong results when economic conditions improve. We look forward to a solid third quarter and continuing improvement throughout the remainder of the year."
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 June 30, 2009 and 2008 (in thousands) (unaudited).
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 June 30, 2009 and 2008. This information is then used as the numerator to calculate normalized earnings per share. Adjusted income from continuing operations and normalized earnings per share are non-US GAAP measures used by management to measure performance.
