TORONTO, ONTARIO — (Marketwire) — 07/26/11 — Progressive Waste Solutions Ltd. (formerly IESI- BFC Ltd.) (the “Company”) (TSX: BIN)(NYSE: BIN) reported financial results for the three and six months ended June 30, 2011.
(All amounts are in thousands of United States (“U.S.”) dollars, unless otherwise stated)
Management Commentary
Reported revenues increased $169.9 million or 56.7% from $299.6 million in the second quarter of 2010 to $469.5 million in the second quarter of 2011. Organic gross revenue, which includes intercompany revenues, grew 3.4% on a consolidated basis and is comprised of total price and volume growth of 3.1% and 0.3%, respectively. Total price and volume improvements in Canada were 3.5% and 1.4%, respectively. Price improved 2.8% in the U.S. while U.S. volumes declined 0.6%.
Revenue growth translated into adjusted EBITDA(A) and operating income growth. Adjusted EBITDA(A) was $136.3 million, or 47.7% higher, in the second quarter of 2011 versus $88.6 million in the same quarter a year ago. Our second quarter adjusted EBITDA(A) margin was 29.0% compared to 29.6% in the second quarter of 2010. Excluding the incremental increase in fuel surcharges from 2011 reportable revenues, our second quarter adjusted EBITDA(A) margin would have been 29.4% for 2011. Adjusted operating income(A) was $70.2 million, or 52.9% higher, in the quarter compared to $45.9 million in the same period last year.
We also generated higher adjusted net income(A) quarter over quarter. Adjusted net income(A) for the second quarter of 2011 was $33.5 million, or $0.28 per weighted average diluted share (“diluted share”), compared to $23.4 million, or $0.25 per diluted share in the comparative period.
Free cash flow(B) for the quarter totalled $64.8 million and was 46.7% higher than the $44.2 million achieved in the comparative period last year. Our free cash flow(B) margin was 13.8% in the quarter compared to 14.7% in the second quarter of 2010, due primarily to higher proportionate interest expense.
“We had a solid performance in the second quarter, with strong organic growth rates for our base business helping us achieve revenues in line with our expectations, despite the headwinds of weather in our Canadian segment and a delay in realizing some efficiencies related to the consolidation of certain Waste Services, Inc. (“WSI”) operations with our existing locations in Canada,” said Keith Carrigan, Vice Chairman and Chief Executive Officer of Progressive Waste Solutions Ltd. “Acquisitions contributed significantly to our total performance, which included contributions from our acquisition of WSI and the 13 “tuck-in” acquisitions we completed in 2010. We also added six more acquisitions to our portfolio in the second quarter, bringing the year-to-date total to seven, which will contribute to our performance through the balance of 2011.”
For the six months ended June 30, 2011, revenue was $892.4 million, compared to revenues of $563.6 million in the year ago period. Adjusted operating income was $131.9 million compared with $82.4 million in the same period in 2010. Adjusted EBITDA(A) for the year-to-date period was $259.4 million compared to $164.5 million in 2010. Our year-to-date adjusted EBITDA(A) margin was 29.1% for 2011 compared to 29.2%, in the same period last year. Excluding the incremental increase in fuel surcharges from 2011 reportable revenues, our year-to-date adjusted EBITDA(A) margin would have been 29.4% for 2011.
For the six months ended June 30, 2011, adjusted net income was $61.6 million, or $0.51 per weighted average diluted share, compared with $42.0 million or $0.45 per share last year.
Financial and Other Highlights
For the Three Months Ended June 30, 2011
For the Six Months Ended June 30, 2011
Other Highlights for the Three and Six Months Ended June 30, 2011
Acquisition of WSI
On July 2, 2010, we completed our acquisition of WSI. WSI–s Canadian operations are included in our Canadian segment, while their Florida operations are included in our U.S. south segment. WSI–s operating results have been included with our own since the date of acquisition. In addition, we have elected to exclude corporate allocated costs from the operating results of our reportable segments. Accordingly, expenses specific to corporate activities have been presented separately from those presented for our reporting segments, for each current and comparative period presented.
Quarterly Dividend Declared
The Company–s Board of Directors declared a quarterly dividend of $0.125 Canadian per share to shareholders of record on September 30, 2011. The dividend will be paid on October 14, 2011. The Company has designated these dividends as eligible dividends for the purposes of the Income Tax Act (Canada).
Financial Highlights
(in thousands of U.S. dollars, except per weighted average share amounts, unless otherwise stated)
FX Impact on Consolidated Results
The following tables have been prepared to assist readers in assessing the impact of FX on selected results for the three and six months ended June 30, 2011.
Management–s Discussion
(all amounts are in thousands of U.S. dollars, unless otherwise stated)
Segment Highlights – expressed on a reportable basis, which excludes the acquisition of WSI on prior period amounts
Revenues
Gross revenue by service type
(prepared on a reportable basis, which excludes WSI–s operations in the previously comparable quarter and year-to-date period)
The following tables compare gross revenues, which include intercompany revenues, for the three and six months ended June 30, 2011 to the comparative periods by service offering. These tables have been prepared on a “reportable basis”, which excludes WSI–s results for the previously comparable periods.
Gross revenue by service type
(prepared on a comparable basis, which includes WSI–s operations, net of divestitures, in the previously comparative quarter and year-to-date period)
The following tables compare gross revenues, which include intercompany revenues, for the three and six months ended June 30, 2011 to the comparative periods by service offering. These tables have been prepared on a “comparable basis” as if WSI–s operations, net of divestitures, were combined with ours in the current and previously comparable periods.
Gross revenue growth or decline components – expressed in percentages and excluding FX
(prepared on a comparable basis – 2011 only)
The tables below have been prepared on a “comparable basis” as outlined above. However, component percentages presented for 2010 have not been prepared on a comparable basis and accordingly do not include WSI–s results.
Three months ended
The increase in Canadian segment gross revenues, presented on a “comparable basis”, is approximately C$10,000. Our Canadian segment delivered price growth in every service line. While we experienced a comparable increase in landfill volumes this quarter, the second quarter didn–t deliver all the volumes we anticipated. We attribute lower than expected landfill volumes to weather, and the related delay in the expected seasonal uptick. We continue to be optimistic that we will fully recoup these volumes over the balance of the year. As in the first quarter, industrial volumes fell short of the mark set in the prior period, while all other service lines delivered organic volume growth. Rising diesel fuel prices also contributed to the increase in comparable fuel surcharges recorded to revenues.
On a comparable basis, gross revenues in the U.S. south increased approximately $31,400. This growth was primarily attributable to acquisitions. However, higher total price and volumes also contributed to this segments overall quarterly performance. Our U.S. south segment enjoyed stronger pricing across all service lines compared to the same period a year ago. Total volume growth was due in large part to gains in our transfer and disposal service lines, while volume changes in all other service lines weren–t meaningful in isolation or in aggregate. Higher fuel surcharges also contributed to gross revenue growth quarter over quarter.
Gross revenues in our U.S. northeast segment increased as well, approximately $4,400. The increase in U.S. northeast gross revenue is largely attributable to acquisitions. Price also contributed to overall gross revenue growth while volume declines were a headwind in the quarter. Pricing was up across all service lines, with the exception of industrial pricing which was down slightly from prior year levels. Comparatively, landfill volumes showed continued strength, however we saw a softening of construction and demolition volumes in the second half of this quarter. All other service lines experienced comparative volume declines. The most notable volume decline was in our recycling service line. One of our material recovery facilities has been off line since the first quarter of the year causing us to use third party facilities. We expect our facility to be fully operational in August 2011. The loss of certain residential contracts, increasing competitive pressures and economic weakness in this segment represent the root causes for the balance of the decline in volumes. Fuel surcharges increased marginally on a comparative basis.
Six months ended
Prepared on a comparable basis, the increase in Canadian segment gross revenues is approximately C$23,300. Year-to-date, we enjoyed price growth across all service lines. As mentioned above, industrial volumes fell short of prior year levels, related largely to a slower than expected seasonal uptick. Weather was also an impediment to gross revenue growth from landfill volumes, however, we expect these shortfalls to be recovered over the balance of the year. All other service lines delivered comparative volume growth, through a combination of both organic and acquisition growth. Rising diesel fuel prices also contributed to the increase in comparable fuel surcharges recorded as revenue.
On a comparable basis, U.S. south segment gross revenues increased approximately $59,000. Acquisitions, coupled with higher overall base business pricing, volumes and fuel surcharges all contributed to the year- to-date growth in gross revenues. All service lines in our U.S. south segment enjoyed pricing growth. A residential contract loss was the primary contributor to the decline in comparative residential volumes, and except for our industrial service line, we enjoyed comparative volume growth in all other service lines. The increase in diesel fuel prices spurred the increase in comparative fuel surcharges.
Year-to-date gross revenue increased in our U.S. northeast segment, approximately $10,300. The principal reasons for the increase are consistent with those outlined above for the three months ended. Acquisitions, price, and fuel surcharges were the primary contributors to this segments gross revenue growth, partially offset by declines in comparative volumes.
Operating expenses
Three and six months ended
In total, the comparative increase in operating expenses is due principally to our mix of business acquired from WSI and other “tuck-in” acquisitions, and is also due in part to FX, higher fuel costs and higher overall collected waste volumes in our pre-existing base business. Acquisitions are the primary reasons for the increases in current period disposal, labour, vehicle and insurance costs, which increased approximately $50,400, $31,700, $26,600 and $2,500, respectively. On the year, higher disposal, labour, vehicle operating and insurance costs, increased approximately $78,800, $60,800, $49,300 and $5,200, respectively, and these increases were also attributable to acquisitions. Commodity rebates were an additional contributor to the increase resulting from higher comparative commodity pricing which impacted our U.S. northeast and Canadian businesses for both periods. Moreover, the rising price of fuel also contributed to higher operating expenses in the current and year-to-date periods.
Looking at Canada in isolation, Canadian operating expenses increased significantly in the quarter and year-to-date periods. The acquisition of WSI, FX, higher fuel costs, higher collected waste volumes and commodity rebates were all contributors to the comparative increases. As a percentage of reportable revenues, operating expenses in Canada were 55.3% on the quarter and 54.6% year-to-date, compared to 52.1% and 51.3% in the same periods in 2010, respectively. While the comparative increases are due largely to the acquisition of WSI, and mix of revenues acquired, fuel costs have also contributed to the rise in operating costs relative to reportable revenues. Removing fuel surcharges from reportable revenues for both the current and comparative year-to-date periods, and a like amount from operating expenses, results in a comparative operating margin improvement of 50 basis points for both periods. Excluding the impact of fuel, operating expenses were slightly higher than expected in the current quarter, due in large part to not realizing integration efficiencies as quickly as predicted. Regardless, we believe we have effectively addressed these inefficiencies and we don–t expect them to repeat in the third and fourth quarters of the year.
The mix of revenues acquired on our acquisition of WSI, coupled with other “tuck-in” acquisitions, also impacted operating expenses as a percentage of reportable revenues in our U.S. south segment. However, unlike Canada, the impact was favourable. As a percentage of reportable revenues, operating expenses in our U.S. south segment were 60.7% on the quarter and 60.2% year-to-date, compared to 61.4% and 60.9% in the comparative periods, respectively. Lower relative labour and vehicle operation and repair costs in both periods are the primary reasons for the improved comparative performances, partially offset by increasing fuel costs. As outlined above in the Canadian segment discussion, removing the impact of fuel surcharges from reportable revenues, and a like amount from operating expenses, for both the current and comparative year-to-date periods, results in a comparative operating margin improvement of 80 and 70 basis points for the three and six month periods ended, respectively.
On a comparative basis, the U.S. northeast region experienced an increase in its cost of operations relative to reportable revenues. The marked increase in operating costs, relative to revenues, is due to higher disposal which is attributable to higher transportation and related disposal costs incurred for special wastes disposed of at third-party sites. The increase in disposal costs is also on account of the change in revenue mix attributable to “tuck-in” acquisitions which introduced more collection operations in this segment. Vehicle operating costs is the other main area which contributed to increasing operating costs. The increase in vehicle operating costs is a function of both increasing fuel prices and mix of service offering due to “tuck-in” acquisitions. Removing the impact of fuel surcharges from revenues and operating expenses on a comparative current quarter and year-to-date basis, had a negligible impact on operating margins in both periods. Finally, we experienced higher leachate disposal costs in the quarter and year-to-date, due to weather and higher comparative costs of disposal.
SG&A expenses
Three and six months ended
Excluding the impact of FX, approximately $1,100 and $2,600 for the three and six months ended, respectively, the comparable increase is due in large part to our acquisition of WSI and other “tuck-in” acquisitions, coupled with organic growth.
The impact of acquisitions is the primary contributor to the increases in salaries and facility costs. In the current quarter, salaries in total increased approximately $9,100, while facility costs increased approximately $2,300. On a year-to-date basis, salaries were up approximately $18,600 and facility cost increases represented approximately $5,400 of the change. We recovered approximately $3,800 from fair value changes in stock options in the quarter, but on a year-to-date basis we have recognized an expense of approximately $1,500. As a percentage of reportable revenues, SG&A expense, expressed on an adjusted basis, is 11.4% and 12.0% for the quarter and year-to-date periods, respectively, compared to 12.2% and 13.0% in the same respective periods a year ago. These changes represent an 80 and 100 basis improvement over the respective periods in the prior year. Rationalizing personnel and operating locations since our acquisition of WSI, is the primary reason for the comparative improvement.
Corporate SG&A includes certain executive costs, legal, accounting, internal audit, treasury, investor relations, corporate development, environmental management, information technology, human resources and other administrative support functions. Corporate SG&A also includes transaction and related costs and fair value changes to stock options. On a comparative basis, transaction and related costs declined approximately $1,600 quarter over quarter and approximately $3,300 year-to-date. In the prior periods, acquisition costs were incurred principally in anticipation of closing the WSI acquisition which we completed on July 2, 2010. We did not replicate an acquisition of this size in either the second quarter or year-to-date periods ended June 30, 2011, which accounts for the comparative decline in acquisition and related costs. Fair value movements in stock options also contributed to the comparative change in corporate SG&A. In the current period, we recognized approximately $6,500 less of expenses, while expenses on a year-to-date basis were down approximately $1,900. As outlined above, a portion of both the increase in salaries and facility costs are attributable to corporate, as is a portion of FX. Higher salaries and facility costs, including FX and totaling approximately $2,500, partially offset the comparative current quarter declines in both transaction and related costs and fair value movements in stock options. Higher comparative travel expense and professional fees also increased on a comparative basis, which is once again due principally to our acquisition of WSI. On a year-to-date basis, the portion of higher salaries and facility costs, including FX, attributable to corporate amounted to $5,700.
Free cash flow(B)
Purpose and objective
The purpose of presenting this non-GAAP measure is to provide disclosure similar to that 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.
Free cash flow(B) – cash flow approach
Free cash flow(B) – adjusted EBITDA(A) approach
Three and six months ended
Excluding FX, approximately $1,900 for the quarter and $3,400 year-to-date, free cash flow(B) increased over the comparative periods. The acquisition of WSI contributed to our free cash flow(B) and adjusted EBITDA(A) growth on a comparative basis. In addition, we also realized improvements to free cash flow(B) and adjusted EBITDA(A) from both organic growth and other “tuck-in” acquisitions. Higher debt levels resulting from our acquisition of WSI and other “tuck-in” acquisitions, coupled with higher interest rates in Canada and the U.S., partially offset adjusted EBITDA(A) improvements in both periods. Capital and landfill asset purchases were also higher on a comparative basis, due in large part to the acquisition of WSI, other “tuck-in” acquisitions and organic growth. While proportional capital and landfill asset purchases were lower in the first quarter of the year, second quarter purchases were on pace with the same period a year ago. Proportionately, year-to-date spending is slightly behind last year–s mark due the timing of spend and contract wins. Cash taxes have also increased in both the current and year-to-date periods comparatively. The increase is most pronounced for our Canadian business due to organic business growth and the acquisition of WSI. WSI–s Canadian operations had no meaningful loss carryforwards to shelter income subject to tax.
Capital and landfill purchases
Capital and landfill purchases characterized as replacement and growth expenditures are as follows:
Capital and landfill purchases – replacement
Capital and landfill purchases characterized as “replacement” expenditures represent cash outlays to sustain current cash flows and are funded from free cash flow(B). Replacement expenditures include the replacement of existing capital assets and all construction spending at our landfills.
Three and six months ended
In total, replacement expenditures increased comparatively in both the current quarter and year-to-date. The increases are primarily concentrated in Canada which accounted for approximately $10,000 and $13,200 of the comparative quarter and year-to-date change, respectively. The increase in second quarter replacement spending is due in large part to our purchase of a facility that we had previously leased, approximately $7,000. The increase in replacement expenditures is also attributable to the timing of cell construction at our Lachenaie landfill which increased comparatively by approximately $1,200 and $2,300 for the three and six month periods ended, respectively. As expected, the acquisition of WSI increased our base business profile. Accordingly, vehicle expenditures represent the balance of the change for both the quarter and year-to-date periods in Canada, which is principally attributable to our larger business base, coupled with the timing of spend.
In the U.S., the second quarter increase in replacement expenditures is due to our larger base business profile, approximately $2,000, coupled with our investment in a facility in our U.S. south segment, approximately $1,000. On a year-to-date basis, we attribute approximately $5,000 of the increase to our larger business base, with the balance due to our facility investment.
Capital and landfill purchases – growth
Capital and landfill purchases characterized as “growth” expenditures represent cash outlays to generate new or future cash flows and are generally funded from free cash flow(B). Growth expenditures include capital assets, including facilities (new or expansion), to support new contract wins and organic business growth.
Three and six months ended
Growth expenditures increased in both the quarter and year-to-date periods. Higher second quarter expenditures in our U.S. business is the primary cause for the increases. Facility investment, approximately $1,000, coupled with spending for a municipal contract win, approximately $1,100, and business growth in both the U.S. south and northeast, were the primary contributors to the increase in growth expenditures. Our Canadian business, experienced declines in both the current and year-to-date periods as a result of fewer contract wins.
Readers are reminded that revenue, adjusted EBITDA(A), and cash flow contributions realized from growth expenditures will materialize over future periods.
Long-term debt
(all amounts are in thousands of U.S. dollars, unless otherwise stated)
Summary details of our long-term debt facilities at June 30, 2011 are as follows:
Funded debt to EBITDA (as defined and calculated in accordance with our Canadian and U.S. long-term debt facilities)
At June 30, 2011, funded long-term debt to EBITDA is as follows:
Canadian facility
On June 30, 2011, advances under our Canadian facility were C$329,000 and total letters of credit amounted to approximately C$54,700. Available capacity at June 30, 2011, excluding the accordion, was approximately C$141,300 and our funded debt to EBITDA ratio (as defined and calculated in accordance with our Canadian facility) was 1.86 times.
We increased Canadian facility advances since December 31, 2010 by C$4,000. Satisfaction of accrued dividends, income taxes payable, and payments on accrued management compensation amounts owing for 2010 are the primary reasons for the increase. Advances were partially offset by repayments resulting from our application of excess free cash flow(B) to Canadian facility borrowings.
Effective July 15, 2011, we amended pricing on our Canadian facility. Pricing on advances drawn under the facility declined by 62.5 basis points. Pricing ranges from 50 to 175 basis points over bank prime for borrowings on prime and 150 to 275 basis points over Bankers– Acceptances (“BAs”) for borrowings on BAs. Pricing on financial letters of credit decreased by similar amounts and pricing ranges from 150 to 275 basis points. Standby fees declined between 15 and 17.5 basis points, and pricing ranges from 37.5 to 68.8 basis points, while non-financial letters of credit decreased between 41.3 and 41.7 basis points. All other significant terms remain unchanged.
U.S. facility
On June 30, 2011, advances under our U.S. facility were $823,500 and total letters of credit amounted to approximately $144,800. Available capacity under the facility at June 30, 2011, excluding the accordion, was approximately $109,200 and our funded debt to EBITDA ratio (as defined and calculated in accordance with our U.S. facility) was 3.28 times.
The increase in U.S. facility advances since December 31, 2010 totals $62,500 and is due in part to the purchase of 1,000 shares in the secondary public offering at a cost of $23,500. We also completed “tuck-in” acquisitions in the period for total cash consideration of approximately $89,700. These amounts were partially offset by debt repayments from excess free cash flow(B).
Effective July 7, 2011, we entered into a Second Amended and Restated Senior Secured Revolving Credit Facility (the “amended U.S. facility”). By entering into the amended U.S. facility we increased the total commitment to $1,377,500, which is up from $1,250,000. Available lending under the amended U.S. facility is $1,122,500, up $45,000 from $1,077,500, and the facility has an “accordion feature” equal to $255,000. Had the amended U.S. facility been in place effective June 30, 2011, available capacity would have been $154,161. Pricing declined on advances drawn under the facility by 75 basis points. Pricing ranges from 175 to 250 basis points over LIBOR for borrowings on LIBOR and 75 to 150 basis points over bank prime for prime rate advances. Pricing on financial letters of credit are 175 to 250 basis points which represents a decline of 75 basis points from previous pricing points. Fronting fees of 12.5 basis points on financial letters of credit are payable at all pricing levels. Standby fees declined by 12.5 basis points and range from 25 to 50 basis points. All other significant terms remain unchanged.
Long-term debt to pro forma adjusted EBITDA(A)
Our pro forma adjusted EBITDA(A) ratio prepared on a combined basis, assuming FX parity, is 2.64 times.
Definitions of Adjusted EBITDA and Free cash flow
(A) All references to “Adjusted EBITDA” in this press release are to revenues less operating expense and SG&A, excluding certain non-operating or non-recurring SG&A expense, on the condensed consolidated statement of operations and comprehensive income. Adjusted EBITDA excludes some or all of the following: certain SG&A expenses, restructuring expenses, 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 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 and fair value adjustments attributable to stock options. 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.
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).
Adjusted EBITDA should not be construed as a measure of income or of cash flows. The reconciling items between adjusted EBITDA and net income are detailed in the condensed consolidated statement of operations and comprehensive income or loss beginning with operating income before restructuring expenses, amortization and net gain or loss on sale of capital assets and ending with net income and includes certain adjustments for expenses recorded to SG&A, which management views as not being indicative of continuing operations. A reconciliation between operating income and adjusted EBITDA is provided in the table that follows. Adjusted operating income and adjusted net income are also presented in the reconciliation below.
(B) We have adopted a measure called “free cash flow” to supplement net income or loss as a measure of 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 is therefore unlikely to be comparable to similar measures used by other companies. The purpose of presenting this non-GAAP measure is to provide similar disclosures to other U.S. publicly listed companies in the waste industry. We use this non-GAAP measure to assess our performance relative to other publically 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 press release have the meaning set out in this note.
About Progressive Waste Solutions Ltd.
As North America–s third largest full-service waste management company, we provide non-hazardous solid waste collection and disposal services to commercial, industrial, municipal and residential customers in 12 U.S. states and the District of Columbia and six Canadian provinces. We serve our customers with vertically integrated collection and disposal assets. Progressive Waste Solutions Ltd.–s shares are listed on the New York and Toronto Stock Exchanges under the symbol BIN.
To find out more about Progressive Waste Solutions, visit our website at .
Management will hold a conference call on Wednesday, July 27, 2011, at 8:30 a.m. (ET) to discuss results for the three and six months ended June 30, 2011. Participants may listen to the call by dialling 1-888-300-0053, conference ID 80077337, at approximately 8:20 a.m. (ET). International or local callers should dial 647-427-3420. The call will also be webcast live at and at .
A replay will be available after the call until Wednesday, August 10, 2011, at midnight, and can be accessed by dialling 1-800-642-1687, conference ID 80077337. International or local callers can access the replay by dialling 706-645-9291. The audio webcast will also be archived at and .
Contacts:
Progressive Waste Solutions Ltd.
Chaya Cooperberg
VP, Investor Relations and Corporate Communications
(905) 532-7517