Progressive Waste Solutions Ltd. Reports Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended June 30, 2015; Revises Earnings Guidance for the Year 2015; Provides Financial Guidance for the Third Quarter and Fourth Quarter of 2015
Jul 30 15
Progressive Waste Solutions Ltd. reported unaudited consolidated earnings results for the second quarter and six months ended June 30, 2015. For the quarter, revenues were USD 492,965,000 against USD 513,501,000 a year ago. Operating income was USD 48,231,000 against USD 78,142,000 a year ago. Income before income tax expense (recovery) and net loss from equity accounted investee was USD 42,325,000 against USD 55,394,000 a year ago. Net income was USD 37,130,000 against USD 40,852,000 a year ago. Net income per weighted average share, basic and diluted was USD 0.33 against USD 0.36 a year ago. Cash generated from operating activities was USD 86,058,000 against USD 112,116,000 a year ago. Purchase of capital assets was USD 61,239,000 against USD 57,999,000 a year ago. Purchase of landfill assets was USD 14,202,000 against USD 15,343,000 a year ago. Adjusted EBITDA was USD 120.3 million, down 3.3% on a constant currency basis, reflecting one-time costs related to the flooding in the West region during the quarter. Adjusted operating EBIT was USD 51.3 million or 35.6% lower in the quarter compared to USD 79.8 million in the same period last year. Adjusted net income was USD 32.1 million or USD 0.29 per diluted share compared to USD 47.2 million or USD 0.41 per diluted share in the comparative period. Free cash flow was USD 18,493,000 against USD 57,107,000 a year ago. Free cash flow, per weighted average share, diluted was USD 0.17 against USD 0.50 a year ago.
For the six months, revenues were USD 953,170,000 against USD 983,271,000 a year ago. Operating income was USD 97,405,000 against USD 119,409,000 a year ago. Income before income tax expense (recovery) and net loss from equity accounted investee was USD 65,567,000 against USD 83,486,000 a year ago. Net income was USD 55,251,000 against USD 66,771,000 a year ago. Net income per weighted average share, basic and diluted was USD 0.49 against USD 0.58 a year ago. Cash generated from operating activities was USD 174,233,000 against USD 186,988,000 a year ago. Purchase of capital assets was USD 112,471,000 against USD 92,429,000 a year ago. Purchase of landfill assets was USD 24,166,000 against USD 24,751,000 a year ago. Adjusted EBITDA was USD 227.1 million or 7.2% lower in 2015 versus the USD 244.7 million posted a year ago. Adjusted operating EBIT was USD 103.4 million compared to the USD 122.4 million recorded last year. Adjusted net income was USD 60.3 million or USD 0.54 per diluted share compared to USD 72.0 million or USD 0.63 per diluted share in the same period last year. Free cash flow was USD 53,178,000 against USD 105,640,000 a year ago. Free cash flow, per weighted average share, diluted was USD 0.48 against USD 0.92 a year ago.
For the year 2015, revenue is expected to be between USD 1,925 million and USD 1,945 million against USD 1,925 million to USD 1,945 million as previously reported. Adjusted EBITDA is now expected to be between USD 500 and USD 515 million against USD 515 and USD 535 million as previously reported. Adjusted operating EBIT is now expected to be between USD 225 and USD 240 million against USD 235 and USD 255 million as previously reported. For 2015, the company now expects cash taxes of around USD 30 million versus USD 35 million previously, and the company is reducing its expected effective tax rate to approximately 22% versus 25% previously. Adjusted net income is expected to be between USD 1.20 and USD 1.34 against USD 1.26 and USD 1.39 as previously reported. Free cash flow is expected to be between USD 165 and USD 180 million against USD 190 to USD 205 million as previously reported. Capital and landfill expenditures including proceeds on sale is expected to be USD 250 million against USD 240 million a year ago. On a consolidated basis, the company expects SG&A expense this year to be in the range of 11% of revenues and decline in 2016.
The company expects consolidated adjusted EBITDA margins in the second half of the year to be above 28%, with fourth quarter margins higher than third quarter.
The company continues to expect adjusted EBITDA margin expansion in the third and fourth quarters from the organic growth and cost reduction programs.
Progressive Waste Solutions Concludes Amendment and Re-Pricing of its Senior Secured Credit Facility
Jul 15 15
Progressive Waste Solutions recently reported that it amended and restated its principal loan agreement resulting in, among other things, a re-pricing of its existing U.S. $2.35 billion senior secured credit facility (credit facility). The amended credit facility holds the amount of the company's revolver constant at U.S. $1.85 billion, but replaces the existing U.S. $500 million term loan B with a term loan A. Based on the company's current funded debt-to-EBITDA leverage ratio, the new interest rate on the revolver is LIBOR plus 1.50%, compared to the previous rate of LIBOR plus 1.75%. The interest rate on the term loan A is LIBOR plus 1.50% (with no LIBOR floor), compared to the previous interest rate on the term loan B of LIBOR plus 1.75% (LIBOR subject to a floor of 0.75%). The company extended the maturity of the revolver and the term loan to June 2020, from October 2018 and October 2019, respectively.