Exhibit 99.1
PROGRESSIVE WASTE SOLUTIONS LTD. REPORTS RESULTS FOR THE THREE MONTHS AND YEAR ENDED DECEMBER 31, 2014
On a constant currency basis, achieves record results in 2014 and delivers strong fiscal year 2015 growth outlook
Toronto, Ontario – February 26, 2015 – Progressive Waste Solutions Ltd. (the “Company”) (NYSE, TSX: BIN) today reported its financial results for the three months and year ended December 31, 2014.
Fourth quarter highlights
| | - | Consolidated revenues of $504.6 million, up 0.5%, and up 3.6% on a constant currency basis. |
| | - | Organic revenue up 3.4%, including price up 2.3% and volume up 1.6%. |
| | - | Adjusted operating EBIT(A) of $72.5 million, up 22.7%, and up 27.8% on a constant currency basis. |
| | - | Adjusted EBITDA(A) of $138.8 million, up 5.2% and, up 9.0% on a constant currency basis. Adjusted EBITDA(A) margin of 27.5%, up 120 basis points. |
| | - | Free cash flow(B), excluding internal infrastructure investment, of $55.5 million. |
| | - | Adjusted net income(A) per share of $0.35, and $0.36 in constant currency, versus $0.29 in the same quarter last year. |
| | - | Repurchased approximately 2.2 million shares, returning $70 million to shareholders in the quarter. |
| | - | Negotiated sale of Long Island assets and used the expected proceeds to acquire assets in higher growth markets. |
Fiscal year 2014 highlights
| | - | Consolidated revenues of $2.01 billion, down 0.8%, and up 1.8% on a constant currency basis. |
| | - | Adjusted operating EBIT(A) of $263.2 million, up 6.9%, and up 11.1% on a constant currency basis. |
| | - | Adjusted EBITDA(A) of $523.4 million, down 1.4%, and up 1.7% on a constant currency basis. |
| | - | Free cash flow(B), excluding internal infrastructure investment, of $235.4 million, up 2.5%, and up 4.8% on a constant currency basis. |
Management Commentary
(All amounts are in United States (“U.S.”) dollars, unless otherwise stated)
“2014 was a transformational year for Progressive Waste Solutions as we demonstrated significant progress on our strategic plan to be a best-in-class operator in the waste services industry,” said Joseph Quarin, President and Chief Executive Officer, Progressive Waste Solutions Ltd. “We put in place a great team that led Progressive Waste Solutions to achieve record results with strong growth in revenue, adjusted net income(A) per share and free cash flow(B), on a constant currency basis, exceeding the guidance we provided at the beginning of the year. We have established a firm foundation for continued revenue growth, on a constant currency basis, and adjusted EBITDA(A) margin expansion of approximately 100-150 basis points in 2015.”
“The operational initiatives we introduced during the year, to improve fleet productivity and field efficiencies, are demonstrating results, reflected by adjusted EBITDA(A) margins of 27.5% in the fourth quarter versus 26.3% in the prior year quarter, as operating costs as a percentage of revenue declined 70 basis points. Free cash flow(B) growth in 2014, excluding infrastructure investments, reflects our disciplined approach to capital allocation in our field operations. We note that approximately $16 million of replacement capital budgeted in the period was delayed for receipt of equipment in early 2015.”
Progressive Waste Solutions Ltd. – December 31, 2014 - 1
Mr. Quarin continued, “Our free cash flow(B) growth in 2014 enabled the return of nearly $81 million to shareholders through share repurchases and an additional $63.5 million in dividends. During the quarter, we continued to focus on the optimal deployment of capital. We conducted a successful process to unlock the value of the Long Island assets in our U.S. northeast segment and expect to complete the sale soon. We also identified opportunities to redeploy the expected proceeds and acquired two companies during the quarter. Our outlook for 2015 reflects the divestiture of the Long Island revenue of approximately $90 million, and the revenue contributions of the acquired assets of about $50 million. We will continue to evaluate the strategic value of assets with a focus towards creating the most value for shareholders.”
Mr. Quarin concluded, “Our outlook for 2015 reflects several external variables in the operating environment, including the current softness in recycled commodity prices and the potential impact of lower oil prices to energy-sensitive markets. Although we have limited operational exposure to the volatility of the Canadian dollar, foreign exchange will impact our reportable results which are denominated in U.S. currency. Notwithstanding, we enter 2015 with momentum and remain highly confident in our ability to execute on our operational excellence program, and deliver on our free cash flow(B) goals.”
Three months ended December 31, 2014
Reported revenues increased $2.6 million or 0.5% from $502.0 million in the fourth quarter of 2013 to $504.6 million in the fourth quarter of 2014. Expressed on a reportable basis, and assuming a foreign currency exchange (“FX”) rate of parity between the Canadian and U.S. dollar (“FX parity”), revenues increased 3.6%. This increase was due in large part to a 2.3% increase in overall pricing and higher volumes of 1.6%, partially offset by lower recycled commodity pricing and fuel surcharges.
Operating income was $56.2 million in the fourth quarter of 2014 versus $58.3 million in the fourth quarter of 2013. Net income was $18.9 million versus $36.2 million in the fourth quarters of 2014 and 2013, respectively.
Adjusted amounts
Adjusted EBITDA(A) was $138.8 million in the fourth quarter of 2014 versus $131.9 million posted in the same quarter a year ago. Adjusted operating EBIT(A) was $72.5 million or 22.7% higher in the quarter compared to $59.1 million in the same period last year. Adjusted net income(A) was $39.9 million, or $0.35 per diluted share, compared to $33.4 million, or $0.29 per diluted share in the comparative period.
Year ended December 31, 2014
For the year ended December 31, 2014, reported revenues decreased ($17.0) million or (0.8)% from $2,026.0 million in 2013 to $2,009.0 million in 2014. Expressed on a reportable basis and at FX parity, revenues increased 1.8% on a comparative basis. The increase is due in large part to a 2.1% increase in overall pricing, partially offset by slight declines in volumes, fuel surcharges and net acquisitions.
For the year ended December 31, operating income was $241.1 million in 2014 versus $232.9 million in 2013. Net income was $126.5 million versus $118.0 million for the years ended December 31, 2014 and 2013, respectively.
Adjusted amounts
For the year ended December 31, adjusted EBITDA(A) was $523.4 million or (1.4)% lower in 2014 versus the $530.8 million posted in 2013. Adjusted operating EBIT(A) was $263.2 million compared to the $246.2 million recorded last year. Adjusted net income(A) was $153.1 million, or $1.33 per diluted share, compared to $127.2 million, or $1.10 per diluted share last year.
Update on Goodwill Impairment Test
As noted in the Company’s October 30, 2014 press release, certain developments, including current local support for the development of the operating location necessary to execute the New York City long-term contract under the previous request for proposal, made the likelihood of the award indeterminate at that time. In light of those developments, the Company performed an interim goodwill test of impairment for its U.S. northeast reporting unit. On a preliminary, unaudited basis, the Company has recorded no goodwill impairment. The Company will finalize its test of impairment prior to filing its annual consolidated financial statements, which may result in an impairment charge that differs from the amount presented on a preliminary basis. In addition, goodwill amounts allocated to assets held for sale is also presented on a preliminary basis.
Amendment to By-law No. 1
The Board of Directors has approved certain amendments to the Company’s By-law No. 1 to require advance notice of the nomination by shareholders of individuals for election to the Board of Directors.
Progressive Waste Solutions Ltd. – December 31, 2014 - 2
For annual meetings, notice to the Company in the prescribed form is required to be given generally not later than the close of business on the 40th day before the date of the meeting. If the meeting is to be held less than 50 days after the date on which the first public announcement of the date of the annual meeting was made, then notice may be given not later than the close of business on the 10th day following the date such first public announcement was made.
For special meetings, notice to the Company in the prescribed form is required to be given not later than the close of business on the 15th day following the day on which the first public announcement of the date of the special meeting is made by the Company.
Shareholders of the Company will be asked to ratify and confirm the amendments at the next meeting of shareholders currently scheduled to be held on May 13, 2015. The full text of By-law No. 1 (as amended) will be filed on www.sedar.com and www.sec.gov.
Progressive Waste Solutions Ltd. – December 31, 2014 - 3
2015 Outlook
The Company is providing its outlook assuming no change in the current economic environment and excluding the impact of any acquisitions we may complete in 2015. It also reflects the anticipated sale of the Long Island assets.
In fiscal year 2015, we expect solid improvement in revenue, adjusted EBITDA(A) and adjusted EBITDA(A) margins, expressed in constant currency where constant currency refers to 2014 actual and 2015 outlook amounts translated at the same average FX rate.
The Company’s 2014 financial results were translated to U.S. dollars at an average FX rate of $0.9052 U.S. dollars for each Canadian dollar. Readers are reminded that we earn a significant portion of our revenues and income in Canada. Based on our 2015 guidance outlook, if the U.S. dollar strengthens by one cent our reported revenues will decline by approximately $8,600. Adjusted EBITDA(A) is similarly impacted by approximately $2,800, assuming a strengthening U.S. dollar. The impact on adjusted net income(A) and free cash flow(B) for a similar change in FX rate, results in an approximately $1,000 decline for each. Should the U.S. dollar weaken by one cent, our reported revenues, adjusted EBITDA(A), adjusted net income(A) and free cash flow(B) will improve by amounts similar to those outlined above as a result of a strengthening U.S. dollar.
Our revenues and earnings are impacted by changes in recycled commodity prices, which includes old corrugated cardboard (“OCC”) and other paper fibers, including newsprint, sorted office paper and mixed paper. Other commodities we receive include plastics, aluminum, metals, and wood. Our results of operations may be affected by changing prices or market demand for recyclable materials. The resale and purchase price of, and market demand for, recyclable materials can be volatile due to changes in economic conditions and numerous other factors beyond our control. These fluctuations may affect our consolidated financial condition, results of operations and cash flows. Our outlook provided for 2015 reflects prices for recycled commodities consistent with February 2015 levels.
The purpose of presenting this outlook is to provide investors and analysts with our expected results for the coming year.
Our outlook, which is forward-looking, was approved by management on February 25, 2015. Our actual results may differ materially and are subject to risks and uncertainties. Please refer to the 2015 outlook assumptions and factors section and the Caution regarding forward looking statements section of this press release for further information.
Our 2015 outlook, expressed in constant and current currency, is as follows (in millions of U.S. dollars, except per share amounts, Canadian dollars (“C$”) and where otherwise stated):
| | | 2015 Outlook (Constant Currency of USD 0.9052/CAD) | | | 2015 Outlook (Current Currency of USD 0.80/CAD) | |
| | | | | | | |
| Revenue | | | $2,015 to $2,035 | | | | $1,925 to $1,945 | |
Adjusted EBITDA(A) | | | $545 to $565 | | | | 515 to $535 | |
Adjusted EBITDA(A) | | | 27.0% to 27.8% | | | | 26.7% to 27.5% | |
| margins | | | | | | | | |
| Amortization expense, as a percentage of revenue | | | 14.6% | | | | 14.4% | |
Adjusted operating EBIT(A) | | | $250 to $270 | | | | $235 to $255 | |
| Interest on long-term debt | | | $60 | | | | $57 | |
| Effective tax rate as a percentage of income before income tax expense | | | 25% | | | | 25% | |
| Cash taxes (expressed on an adjusted basis) | | | $37 | | | | $35 | |
| Adjusted net income(A) | | | $1.33 to $1.46 | | | | $1.26 to $1.39 | |
| per diluted share | | | | | | | | |
Free cash flow(B) | | | $200 to $215 | | | | $190 to $205 | |
Capital and landfill expenditures including net proceeds on sale(1) | | | $250 | | | | $240 | |
| Expected annual cash dividend, payable on a quarterly basis | | C$0.64 per share | | | C$0.64 per share | |
| | | | | | | | | |
| Notes: | | | | | | | | |
(1)Excludes proceeds from sale of Long Island, New York operations | |
Progressive Waste Solutions Ltd. – December 31, 2014 - 4
Progressive Waste Solutions Ltd.
Consolidated Statements of Operations and Comprehensive Income or Loss (“Statement of Operations and Comprehensive Income or Loss”)
For the three months (unaudited) and years ended (unaudited) December 31, 2014 and 2013 (stated in accordance with accounting principles generally accepted in the United States of America (“U.S.”) and in thousands of U.S. dollars, except share and net income per share amounts)
| | | Three months ended | | | Year ended | |
| | | 2014 | | | 2013 | | | 2014 | | | 2013 | |
| | | | | | | | | | | | | |
| REVENUES | | $ | 504,569 | | | $ | 502,007 | | | $ | 2,008,997 | | | $ | 2,026,039 | |
| EXPENSES | | | | | | | | | | | | | | | | |
| OPERATING | | | 308,150 | | | | 310,193 | | | | 1,246,175 | | | | 1,249,252 | |
| SELLING, GENERAL AND ADMINISTRATION | | | 66,447 | | | | 60,671 | | | | 254,023 | | | | 255,173 | |
| AMORTIZATION | | | 74,073 | | | | 73,379 | | | | 285,605 | | | | 296,491 | |
| NET GAIN ON SALE OF CAPITAL AND LANDFILL ASSETS | | | (306 | ) | | | (566 | ) | | | (17,905 | ) | | | (7,793 | ) |
| OPERATING INCOME | | | 56,205 | | | | 58,330 | | | | 241,099 | | | | 232,916 | |
| INTEREST ON LONG-TERM DEBT | | | 15,483 | | | | 15,482 | | | | 61,917 | | | | 60,754 | |
| NET FOREIGN EXCHANGE LOSS (GAIN) | | | 19 | | | | 419 | | | | (150 | ) | | | (1,061 | ) |
| NET LOSS (GAIN) ON FINANCIAL INSTRUMENTS | | | 16,419 | | | | (5,819 | ) | | | 24,214 | | | | (4,282 | ) |
| LOSS ON EXTINGUISHMENT OF DEBT | | | - | | | | 1,240 | | | | - | | | | 1,240 | |
| RE-MEASUREMENT GAIN ON PREVIOUSLY HELD EQUITY INVESTMENT | | | - | | | | - | | | | (5,156 | ) | | | - | |
| INCOME BEFORE INCOME TAX EXPENSE (RECOVERY) AND NET (INCOME) | | | | | | | | | | | | | | | | |
| LOSS FROM EQUITY ACCOUNTED INVESTEE | | | 24,284 | | | | 47,008 | | | | 160,274 | | | | 176,265 | |
| INCOME TAX EXPENSE (RECOVERY) | | | | | | | | | | | | | | | | |
| Current | | | 11,721 | | | | 6,431 | | | | 34,026 | | | | 29,535 | |
| Deferred | | | (6,368 | ) | | | 4,552 | | | | (350 | ) | | | 28,908 | |
| | | | 5,353 | | | | 10,983 | | | | 33,676 | | | | 58,443 | |
| NET (INCOME) LOSS FROM EQUITY ACCOUNTED INVESTEE | | | - | | | | (217 | ) | | | 82 | | | | (148 | ) |
| NET INCOME | | | 18,931 | | | | 36,242 | | | | 126,516 | | | | 117,970 | |
| | | | | | | | | | | | | | | | | |
| OTHER COMPREHENSIVE LOSS: | | | | | | | | | | | | | | | | |
| Foreign currency translation adjustment | | | (14,776 | ) | | | (16,444 | ) | | | (41,773 | ) | | | (33,181 | ) |
| | | | | | | | | | | | | | | | | |
| Derivatives designated as cash flow hedges, net of | | | | | | | | | | | | | | | | |
| income tax $nil and $nil (2013 - $10 and $566) | | | - | | | | (18 | ) | | | - | | | | (1,051 | ) |
| Settlement of derivatives designated as cash flow hedges, | | | | | | | | | | | | | | | | |
| net of income tax $nil and ($225) (2013 - ($5) and ($247)) | | | - | | | | 8 | | | | 418 | | | | 457 | |
| | | | - | | | | (10 | ) | | | 418 | | | | (594 | ) |
| TOTAL OTHER COMPREHENSIVE LOSS | | | (14,776 | ) | | | (16,454 | ) | | | (41,355 | ) | | | (33,775 | ) |
| COMPREHENSIVE INCOME | | $ | 4,155 | | | $ | 19,788 | | | $ | 85,161 | | | $ | 84,195 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Net income per weighted average share, basic and diluted | | $ | 0.17 | | | $ | 0.31 | | | $ | 1.10 | | | $ | 1.02 | |
| Weighted average number of shares outstanding | | | | | | | | | | | | | | | | |
| (thousands), basic and diluted | | | 114,346 | | | | 115,175 | | | | 114,822 | | | | 115,170 | |
Progressive Waste Solutions Ltd. – December 31, 2014 - 5
Progressive Waste Solutions Ltd.
Consolidated Balance Sheets (“Balance Sheet”)
December 31, 2014 (unaudited) and December 31, 2013 (stated in accordance with accounting principles generally accepted in the U.S. and in thousands of U.S. dollars except issued and outstanding share amounts)
| | | December 31, | | | December 31, | |
| | | 2014 | | | 2013 | |
| ASSETS | | | | | | |
| CURRENT | | | | | | |
| Cash and cash equivalents | | $ | 41,636 | | | $ | 31,980 | |
| Accounts receivable | | | 216,201 | | | | 229,548 | |
| Other receivables | | | 47 | | | | 68 | |
| Prepaid expenses | | | 35,589 | | | | 34,886 | |
| Income taxes recoverable | | | 1,646 | | | | 2,531 | |
| Restricted cash | | | 521 | | | | 498 | |
| Other assets | | | - | | | | 2,149 | |
| | | | 295,640 | | | | 301,660 | |
| | | | | | | | | |
| NET ASSETS HELD FOR SALE | | | 61,016 | | | | - | |
| OTHER RECEIVABLES | | | 5,460 | | | | - | |
| FUNDED LANDFILL POST-CLOSURE COSTS | | | 11,365 | | | | 10,690 | |
| INTANGIBLES | | | 165,929 | | | | 220,078 | |
| GOODWILL | | | 937,294 | | | | 905,347 | |
| LANDFILL DEVELOPMENT ASSETS | | | 14,463 | | | | 20,247 | |
| DEFERRED FINANCING COSTS | | | 14,417 | | | | 19,037 | |
| CAPITAL ASSETS | | | 928,550 | | | | 937,252 | |
| LANDFILL ASSETS | | | 936,095 | | | | 952,731 | |
| INVESTMENTS | | | 892 | | | | 5,659 | |
| OTHER ASSETS | | | 5,315 | | | | 19,869 | |
| | | $ | 3,376,436 | | | $ | 3,392,570 | |
| | | | | | | | | |
| LIABILITIES | | | | | | | | |
| CURRENT | | | | | | | | |
| Accounts payable | | $ | 86,825 | | | $ | 100,270 | |
| Accrued charges | | | 174,331 | | | | 136,991 | |
| Dividends payable | | | 15,517 | | | | 16,243 | |
| Income taxes payable | | | 5,933 | | | | 2,048 | |
| Deferred revenues | | | 16,323 | | | | 17,180 | |
| Current portion of long-term debt | | | 5,428 | | | | 5,969 | |
| Landfill closure and post-closure costs | | | 9,519 | | | | 10,332 | |
| Other liabilities | | | 16,558 | | | | 12,925 | |
| | | | 330,434 | | | | 301,958 | |
| | | | | | | | | |
| LONG-TERM DEBT | | | 1,552,617 | | | | 1,542,289 | |
| LANDFILL CLOSURE AND POST-CLOSURE COSTS | | | 120,626 | | | | 114,122 | |
| OTHER LIABILITIES | | | 17,118 | | | | 14,743 | |
| DEFERRED INCOME TAXES | | | 126,848 | | | | 129,887 | |
| | | | 2,147,643 | | | | 2,102,999 | |
| | | | | | | | | |
| | | | | | | | | |
| SHAREHOLDERS' EQUITY | | | | | | | | |
| Common shares (authorized - unlimited, issued | | | | | | | | |
| and outstanding - 112,106,839 (December 31, 2013 - 114,852,852)) | | | 1,734,372 | | | | 1,773,734 | |
| Restricted shares (issued and outstanding - 399,228 (December 31, 2013 - 322,352)) | | | (9,184 | ) | | | (6,654 | ) |
| Additional paid in capital | | | 4,023 | | | | 2,796 | |
| Accumulated deficit | | | (377,172 | ) | | | (398,414 | ) |
| Accumulated other comprehensive loss | | | (123,246 | ) | | | (81,891 | ) |
| Total shareholders' equity | | | 1,228,793 | | | | 1,289,571 | |
| | | $ | 3,376,436 | | | $ | 3,392,570 | |
Progressive Waste Solutions Ltd. – December 31, 2014 - 6
Progressive Waste Solutions Ltd.
Consolidated Statements of Cash Flows (“Statement of Cash Flows”)
For the three months (unaudited) and years ended (unaudited) December 31, 2014 and 2013 (stated in accordance with accounting principles generally accepted in the U.S. and in thousands of U.S. dollars)
| | | Three months ended | | | Year ended | |
| | | 2014 | | | 2013 | | | 2014 | | | 2013 | |
| | | | | | | | | | | | | |
| NET INFLOW (OUTFLOW) OF CASH RELATED TO THE FOLLOWING ACTIVITIES | | | | | | | | | | |
| OPERATING | | | | | | | | | | | | |
| Net income | | $ | 18,931 | | | $ | 36,242 | | | $ | 126,516 | | | $ | 117,970 | |
| Items not affecting cash | | | | | | | | | | | | | | | | |
| Restricted share expense | | | 728 | | | | 562 | | | | 2,759 | | | | 2,004 | |
| Write-off of deferred financing costs | | | - | | | | 1,240 | | | | - | | | | 1,240 | |
| Accretion of landfill closure and post-closure costs | | | 1,518 | | | | 1,418 | | | | 6,132 | | | | 5,655 | |
| Amortization of intangibles | | | 14,969 | | | | 14,046 | | | | 56,421 | | | | 62,929 | |
| Amortization of capital assets | | | 40,698 | | | | 38,155 | | | | 152,895 | | | | 152,728 | |
| Amortization of landfill assets | | | 18,406 | | | | 21,178 | | | | 76,289 | | | | 80,834 | |
Interest on long-term debt (amortization of deferred financing costs) | | | 831 | | | | 854 | | | | 3,418 | | | | 3,436 | |
| Non-cash interest income | | | (72 | ) | | | - | | | | (216 | ) | | | - | |
| Net gain on sale of capital and landfill assets | | | (306 | ) | | | (566 | ) | | | (17,905 | ) | | | (7,793 | ) |
| Net loss (gain) on financial instruments | | | 16,419 | | | | (5,819 | ) | | | 24,214 | | | | (4,282 | ) |
| Re-measurement gain on previously held equity investment | | | - | | | | - | | | | (5,156 | ) | | | - | |
| Deferred income taxes | | | (6,368 | ) | | | 4,552 | | | | (350 | ) | | | 28,908 | |
| Net (income) loss from equity accounted investee | | | - | | | | (217 | ) | | | 82 | | | | (148 | ) |
| Landfill closure and post-closure expenditures | | | (1,293 | ) | | | (742 | ) | | | (4,696 | ) | | | (4,276 | ) |
| Changes in non-cash working capital items | | | 12,056 | | | | 19,706 | | | | (20,677 | ) | | | 11,530 | |
| Cash generated from operating activities | | | 116,517 | | | | 130,609 | | | | 399,726 | | | | 450,735 | |
| INVESTING | | | | | | | | | | | | | | | | |
| Acquisitions | | | (67,781 | ) | | | (104 | ) | | | (77,698 | ) | | | (3,273 | ) |
| Investment in cost accounted for investee | | | - | | | | (728 | ) | | | - | | | | (1,746 | ) |
| Restricted cash deposits | | | (1 | ) | | | - | | | | (23 | ) | | | (22 | ) |
| Investment in other receivables | | | (164 | ) | | | - | | | | (253 | ) | | | (134 | ) |
| Proceeds from other receivables | | | 19 | | | | 140 | | | | 76 | | | | 556 | |
| Funded landfill post-closure costs | | | (409 | ) | | | (448 | ) | | | (1,569 | ) | | | (1,134 | ) |
| Purchase of capital assets | | | (50,236 | ) | | | (42,242 | ) | | | (182,834 | ) | | | (208,202 | ) |
| Purchase of landfill assets | | | (12,074 | ) | | | (17,154 | ) | | | (54,579 | ) | | | (65,660 | ) |
| Proceeds from the sale of capital and landfill assets | | | 3,467 | | | | 5,551 | | | | 28,528 | | | | 21,183 | |
| Investment in landfill development assets | | | (463 | ) | | | (744 | ) | | | (1,103 | ) | | | (3,334 | ) |
| Cash utilized in investing activities | | | (127,642 | ) | | | (55,729 | ) | | | (289,455 | ) | | | (261,766 | ) |
| FINANCING | | | | | | | | | | | | | | | | |
| Payment of deferred financing costs | | | - | | | | (3,938 | ) | | | (48 | ) | | | (4,762 | ) |
| Proceeds from long-term debt | | | 196,480 | | | | 103,023 | | | | 358,682 | | | | 770,139 | |
| Repayment of long-term debt | | | (84,559 | ) | | | (150,736 | ) | | | (305,339 | ) | | | (880,800 | ) |
| Proceeds from the exercise of stock options | | | 24 | | | | - | | | | 123 | | | | 112 | |
| Repurchase of common shares and related costs | | | (69,827 | ) | | | - | | | | (80,770 | ) | | | (14 | ) |
| Purchase of, net of proceeds from, restricted shares | | | - | | | | - | | | | (3,920 | ) | | | (4,462 | ) |
| Dividends paid to shareholders | | | (16,176 | ) | | | (16,469 | ) | | | (63,475 | ) | | | (63,725 | ) |
| Cash generated from (utilized in) financing activities | | | 25,942 | | | | (68,120 | ) | | | (94,747 | ) | | | (183,512 | ) |
| Effect of foreign currency translation on cash and cash equivalents | | | (3,009 | ) | | | (1,844 | ) | | | (5,868 | ) | | | (3,417 | ) |
| NET CASH INFLOW | | | 11,808 | | | | 4,916 | | | | 9,656 | | | | 2,040 | |
| CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD OR YEAR | | | 29,828 | | | | 27,064 | | | | 31,980 | | | | 29,940 | |
| CASH AND CASH EQUIVALENTS, END OF YEAR | | $ | 41,636 | | | $ | 31,980 | | | $ | 41,636 | | | $ | 31,980 | |
| SUPPLEMENTAL CASH FLOW INFORMATION: | | | | | | | | | | | | | | | | |
| Cash and cash equivalents are comprised of: | | | | | | | | | | | | | | | | |
| Cash | | $ | 37,324 | | | $ | 28,200 | | | $ | 37,324 | | | $ | 28,200 | |
| Cash equivalents | | | 4,312 | | | | 3,780 | | | | 4,312 | | | | 3,780 | |
| | | $ | 41,636 | | | $ | 31,980 | | | $ | 41,636 | | | $ | 31,980 | |
| Cash paid during the period or year for: | | | | | | | | | | | | | | | | |
| Income taxes | | $ | 6,085 | | | $ | 4,406 | | | $ | 35,333 | | | $ | 35,429 | |
| Interest | | $ | 14,674 | | | $ | 15,989 | | | $ | 60,358 | | | $ | 62,336 | |
Progressive Waste Solutions Ltd. – December 31, 2014 - 7
FX Impact on Consolidated Results
The following tables have been prepared to assist readers in assessing the FX impact on selected results for the three months and year ended December 31, 2014.
| | | | | | | | | Three months ended | |
| | | December 31, 2013 | | | December 31, 2014 | | | December 31, 2014 | | | December 31, 2014 | | | December 31, 2014 | |
| | | (as reported) | | | (organic, acquisition and other non- operating changes) | | | (holding FX constant with the comparative period) | | | (FX impact) | | | (as reported) | |
| | | | | | | | | | | | | | | | |
| Consolidated Statement of Operations | | | | | | | | | | | | | |
| Revenues | | $ | 502,007 | | | $ | 17,889 | | | $ | 519,896 | | | $ | (15,327 | ) | | $ | 504,569 | |
| Operating expenses | | | 310,193 | | | | 6,329 | | | | 316,522 | | | | (8,372 | ) | | | 308,150 | |
| Selling, general and administration | | | 60,671 | | | | 8,309 | | | | 68,980 | | | | (2,533 | ) | | | 66,447 | |
| Amortization | | | 73,379 | | | | 3,041 | | | | 76,420 | | | | (2,347 | ) | | | 74,073 | |
| Net gain on sale of capital and landfill assets | | | (566 | ) | | | 214 | | | | (352 | ) | | | 46 | | | | (306 | ) |
| Operating income | | | 58,330 | | | | (4 | ) | | | 58,326 | | | | (2,121 | ) | | | 56,205 | |
| Interest on long-term debt | | | 15,482 | | | | 1,301 | | | | 16,783 | | | | (1,300 | ) | | | 15,483 | |
| Net foreign exchange loss | | | 419 | | | | (399 | ) | | | 20 | | | | (1 | ) | | | 19 | |
| Net (gain) loss on financial instruments | | | (5,819 | ) | | | 23,227 | | | | 17,408 | | | | (989 | ) | | | 16,419 | |
| Loss on extinguishment of debt | | | 1,240 | | | | (1,240 | ) | | | - | | | | - | | | | - | |
| Income before net income tax expense and | | | | | | | | | | | | | | | | | | | | |
| net income from equity accounted investee | | | 47,008 | | | | (22,893 | ) | | | 24,115 | | | | 169 | | | | 24,284 | |
| Net income tax expense | | | 10,983 | | | | (5,156 | ) | | | 5,827 | | | | (474 | ) | | | 5,353 | |
| Net income from equity accounted investee | | | (217 | ) | | | 217 | | | | - | | | | - | | | | - | |
| Net income | | $ | 36,242 | | | $ | (17,954 | ) | | $ | 18,288 | | | $ | 643 | | | $ | 18,931 | |
| | | | | | | | | | | | | | | | | | | | | |
Adjusted EBITDA(A) | | $ | 131,927 | | | $ | 11,888 | | | $ | 143,815 | | | $ | (5,031 | ) | | $ | 138,784 | |
Adjusted EBITA(A) | | $ | 72,594 | | | $ | 10,053 | | | $ | 82,647 | | | $ | (2,967 | ) | | $ | 79,680 | |
Adjusted operating income or adjusted operating EBIT(A) | | $ | 59,114 | | | $ | 16,453 | | | $ | 75,567 | | | $ | (3,021 | ) | | $ | 72,546 | |
Adjusted net income(A) | | $ | 33,417 | | | $ | 7,311 | | | $ | 40,728 | | | $ | (871 | ) | | $ | 39,857 | |
Free cash flow(B) | | $ | 57,699 | | | $ | (2,261 | ) | | $ | 55,438 | | | $ | (1,717 | ) | | $ | 53,721 | |
Progressive Waste Solutions Ltd. – December 31, 2014 - 8
| | | | | | | | | | | | Year ended | |
| | December 31, 2013 | | | December 31, 2014 | | | December 31, 2014 | | | December 31, 2014 | | | December 31, 2014 | |
| | | (as reported) | | | (organic, acquisition and other non- operating changes) | | | (holding FX constant with the comparative year) | | | (FX impact) | | | (as reported) | |
| | | | | | | | | | | | | | | | |
| Consolidated Statement of Operations | | | | | | | | | | |
| Revenues | | $ | 2,026,039 | | | $ | 36,974 | | | $ | 2,063,013 | | | $ | (54,016 | ) | | $ | 2,008,997 | |
| Operating expenses | | | 1,249,252 | | | | 27,199 | | | | 1,276,451 | | | | (30,276 | ) | | | 1,246,175 | |
| Selling, general and administration | | | 255,173 | | | | 7,038 | | | | 262,211 | | | | (8,188 | ) | | | 254,023 | |
| Amortization | | | 296,491 | | | | (3,297 | ) | | | 293,194 | | | | (7,589 | ) | | | 285,605 | |
| Net gain on sale of capital and landfill assets | | | (7,793 | ) | | | (11,106 | ) | | | (18,899 | ) | | | 994 | | | | (17,905 | ) |
| Operating income | | | 232,916 | | | | 17,140 | | | | 250,056 | | | | (8,957 | ) | | | 241,099 | |
| Interest on long-term debt | | | 60,754 | | | | 5,633 | | | | 66,387 | | | | (4,470 | ) | | | 61,917 | |
| Net foreign exchange gain | | | (1,061 | ) | | | 892 | | | | (169 | ) | | | 19 | | | | (150 | ) |
| Net (gain) loss on financial instruments | | | (4,282 | ) | | | 29,981 | | | | 25,699 | | | | (1,485 | ) | | | 24,214 | |
| Loss on extinguishment of debt | | | 1,240 | | | | (1,240 | ) | | | - | | | | - | | | | - | |
| Re-measurement gain on previously held | | | | | | | | | | | | | | | | | | | | |
| equity investment | | | - | | | | (5,639 | ) | | | (5,639 | ) | | | 483 | | | | (5,156 | ) |
| Income before net income tax expense and | | | | | | | | | | | | | | | | | | | | |
| net (income) loss from equity accounted investee | | | 176,265 | | | | (12,487 | ) | | | 163,778 | | | | (3,504 | ) | | | 160,274 | |
| Net income tax expense | | | 58,443 | | | | (23,408 | ) | | | 35,035 | | | | (1,359 | ) | | | 33,676 | |
| Net (income) loss from equity accounted investee | | | (148 | ) | | | 236 | | | | 88 | | | | (6 | ) | | | 82 | |
| Net income | | $ | 117,970 | | | $ | 10,685 | | | $ | 128,655 | | | $ | (2,139 | ) | | $ | 126,516 | |
| | | | | | | | | | | | | | | | | | | | | |
Adjusted EBITDA(A) | | $ | 530,775 | | | $ | 9,155 | | | $ | 539,930 | | | $ | (16,559 | ) | | $ | 523,371 | |
Adjusted EBITA(A) | | $ | 297,613 | | | $ | 7,031 | | | $ | 304,244 | | | $ | (10,057 | ) | | $ | 294,187 | |
Adjusted operating income or adjusted operating EBIT(A) | | $ | 246,151 | | | $ | 27,306 | | | $ | 273,457 | | | $ | (10,257 | ) | | $ | 263,200 | |
Adjusted net income(A) | | $ | 127,152 | | | $ | 29,813 | | | $ | 156,965 | | | $ | (3,889 | ) | | $ | 153,076 | |
Free cash flow(B) | | $ | 191,031 | | | $ | 34,556 | | | $ | 225,587 | | | $ | (4,501 | ) | | $ | 221,086 | |
Progressive Waste Solutions Ltd. – December 31, 2014 - 9
Other Financial Highlights
(all amounts are in thousands of U.S. dollars, excluding per share amounts)
| | Three months ended | | | Year ended | |
| | | | | | December 31 | | | | | | December 31 | |
| | | 2014 | | | 2013 | | | 2014 | | | 2013 | |
| | | | | | | | | | | | | |
| Operating income | | $ | 56,205 | | | $ | 58,330 | | | $ | 241,099 | | | $ | 232,916 | |
| Transaction and related costs (recoveries) - SG&A | | | 322 | | | | (2,349 | ) | | | (591 | ) | | | (2,460 | ) |
Fair value movements in stock options - SG&A(*) | | | 6,398 | | | | (182 | ) | | | 9,695 | | | | 5,879 | |
Restricted share expense - SG&A(*) | | | 395 | | | | 350 | | | | 1,401 | | | | 1,142 | |
| Non-operating or non-recurring expenses - SG&A | | | 1,697 | | | | 2,965 | | | | 4,067 | | | | 4,600 | |
| Impairment of capital and intangible assets - Amortization | | | 7,529 | | | | - | | | | 7,529 | | | | 4,074 | |
Adjusted operating income or adjusted operating EBIT(A) | | | 72,546 | | | | 59,114 | | | | 263,200 | | | | 246,151 | |
| Net gain on sale of capital and landfill assets | | | (306 | ) | | | (566 | ) | | | (17,905 | ) | | | (7,793 | ) |
Amortization(*)(*) | | | 66,544 | | | | 73,379 | | | | 278,076 | | | | 292,417 | |
Adjusted EBITDA(A) | | | 138,784 | | | | 131,927 | | | | 523,371 | | | | 530,775 | |
| Amortization of capital and landfill assets | | | (59,104 | ) | | | (59,333 | ) | | | (229,184 | ) | | | (233,562 | ) |
Adjusted EBITA(A) | | $ | 79,680 | | | $ | 72,594 | | | $ | 294,187 | | | $ | 297,213 | |
| | | | | | | | | | | | | | | | | |
| Net income | | $ | 18,931 | | | $ | 36,242 | | | $ | 126,516 | | | $ | 117,970 | |
| Transaction and related costs (recoveries) - SG&A | | | 322 | | | | (2,349 | ) | | | (591 | ) | | | (2,460 | ) |
Fair value movements in stock options - SG&A(*) | | | 6,398 | | | | (182 | ) | | | 9,695 | | | | 5,879 | |
Restricted share expense - SG&A(*) | | | 395 | | | | 350 | | | | 1,401 | | | | 1,142 | |
| Non-operating or non-recurring expenses - SG&A | | | 1,697 | | | | 2,965 | | | | 4,067 | | | | 4,600 | |
| Impairment of capital and intangible assets - Amortization | | | 7,529 | | | | - | | | | 7,529 | | | | 4,074 | |
| Net loss (gain) on financial instruments | | | 16,419 | | | | (5,819 | ) | | | 24,214 | | | | (4,282 | ) |
| Loss on extinguishment of debt | | | - | | | | 1,240 | | | | - | | | | 1,240 | |
| Re-measurement gain on previously held equity investment | | | - | | | | - | | | | (5,156 | ) | | | - | |
| Net income tax (recovery) expense | | | (11,834 | ) | | | 970 | | | | (14,599 | ) | | | (1,011 | ) |
Adjusted net income(A) | | $ | 39,857 | | | $ | 33,417 | | | $ | 153,076 | | | $ | 127,152 | |
| Note: | | | | | | | | | | | | | | | | |
(*)Amounts exclude long-term incentive plan ("LTIP") compensation. | |
(*)(*)Amortization is presented net of amortization expense recorded on the impairment of capital and intangible assets. | |
Adjusted net income (A) | | | | | | | | | | | | |
| per weighted average share, basic | | $ | 0.35 | | | $ | 0.29 | | | $ | 1.33 | | | $ | 1.10 | |
Adjusted net income (A) | | | | | | | | | | | | | | | | |
| per weighted average share, diluted | | $ | 0.35 | | | $ | 0.29 | | | $ | 1.33 | | | $ | 1.10 | |
| | | | | | | | | | | | | | | | | |
| Replacement and growth expenditures | | | | | | | | | | | | | | | | |
| Replacement expenditures | | $ | 39,553 | | | $ | 33,975 | | | $ | 144,324 | | | $ | 168,014 | |
| Growth expenditures | | | 22,757 | | | | 25,421 | | | | 93,089 | | | | 105,848 | |
| Total replacement and growth expenditures | | $ | 62,310 | | | $ | 59,396 | | | $ | 237,413 | | | $ | 273,862 | |
| | | | | | | | | | | | | | | | | |
| Cash flow | | | | | | | | | | | | | | | | |
| Cash generated from operating activities (statement of cash flows) | | $ | 116,517 | | | $ | 130,609 | | | $ | 399,726 | | | $ | 450,735 | |
Free cash flow(B) | | $ | 53,721 | | | $ | 57,699 | | | $ | 221,086 | | | $ | 191,031 | |
Free cash flow (B) | | | | | | | | | | | | | | | | |
| per weighted average share, diluted | | $ | 0.47 | | | $ | 0.50 | | | $ | 1.93 | | | $ | 1.66 | |
| | | | | | | | | | | | | | | | | |
| Dividends | | | | | | | | | | | | | | | | |
| Dividends paid (common shares) | | $ | 16,176 | | | $ | 16,469 | | | $ | 63,475 | | | $ | 63,725 | |
Progressive Waste Solutions Ltd. – December 31, 2014 - 10
Segment Highlights – Additional details regarding the FX impact on our comparative results can be found in the Foreign Currency section of this report.
(all amounts are in thousands of U.S. dollars, unless otherwise stated)
| | | | | | | | | Three months ended | |
| | | | | | | | | | | | | | | December 31 | |
| | | 2013 | | | 2014 | | | | | | 2014 | | | | |
| | | (as reported) | | | (holding FX constant with the comparative period) | | | Change | | | (as reported) | | | Change | |
| | | | | | | | | | | | | | | | |
| Revenues | | $ | 502,007 | | | $ | 519,896 | | | $ | 17,889 | | | $ | 504,569 | | | $ | 2,562 | |
| Canada | | $ | 192,075 | | | $ | 202,194 | | | $ | 10,119 | | | $ | 186,867 | | | $ | (5,208 | ) |
| U.S. south | | $ | 220,896 | | | $ | 231,247 | | | $ | 10,351 | | | $ | 231,247 | | | $ | 10,351 | |
| U.S. northeast | | $ | 89,036 | | | $ | 86,455 | | | $ | (2,581 | ) | | $ | 86,455 | | | $ | (2,581 | ) |
| | | | | | | | | | | | | | | | | | | | | |
| Operating expenses | | $ | 310,193 | | | $ | 316,522 | | | $ | 6,329 | | | $ | 308,150 | | | $ | (2,043 | ) |
| Canada | | $ | 107,347 | | | $ | 109,968 | | | $ | 2,621 | | | $ | 101,596 | | | $ | (5,751 | ) |
| U.S. south | | $ | 140,885 | | | $ | 147,945 | | | $ | 7,060 | | | $ | 147,945 | | | $ | 7,060 | |
| U.S. northeast | | $ | 61,961 | | | $ | 58,609 | | | $ | (3,352 | ) | | $ | 58,609 | | | $ | (3,352 | ) |
| | | | | | | | | | | | | | | | | | | | | |
| SG&A (as reported) | | $ | 60,671 | | | $ | 68,980 | | | $ | 8,309 | | | $ | 66,447 | | | $ | 5,776 | |
| Canada | | $ | 17,651 | | | $ | 17,205 | | | $ | (446 | ) | | $ | 15,919 | | | $ | (1,732 | ) |
| U.S. south | | $ | 21,128 | | | $ | 22,144 | | | $ | 1,016 | | | $ | 22,144 | | | $ | 1,016 | |
| U.S. northeast | | $ | 9,545 | | | $ | 7,673 | | | $ | (1,872 | ) | | $ | 7,673 | | | $ | (1,872 | ) |
| Corporate | | $ | 12,347 | | | $ | 21,958 | | | $ | 9,611 | | | $ | 20,711 | | | $ | 8,364 | |
| | | | | | | | | | | | | | | | | | | | | |
EBITDA(A) (as reported) | | $ | 131,143 | | | $ | 134,394 | | | $ | 3,251 | | | $ | 129,972 | | | $ | (1,171 | ) |
| Canada | | $ | 67,077 | | | $ | 75,021 | | | $ | 7,944 | | | $ | 69,352 | | | $ | 2,275 | |
| U.S. south | | $ | 58,883 | | | $ | 61,158 | | | $ | 2,275 | | | $ | 61,158 | | | $ | 2,275 | |
| U.S. northeast | | $ | 17,530 | | | $ | 20,173 | | | $ | 2,643 | | | $ | 20,173 | | | $ | 2,643 | |
| Corporate | | $ | (12,347 | ) | | $ | (21,958 | ) | | $ | (9,611 | ) | | $ | (20,711 | ) | | $ | (8,364 | ) |
| | | | | | | | | | | | | | | | | | | | | |
| Adjusted SG&A | | $ | 59,887 | | | $ | 59,559 | | | $ | (328 | ) | | $ | 57,635 | | | $ | (2,252 | ) |
| Canada | | $ | 17,651 | | | $ | 17,205 | | | $ | (446 | ) | | $ | 15,919 | | | $ | (1,732 | ) |
| U.S. south | | $ | 21,128 | | | $ | 22,144 | | | $ | 1,016 | | | $ | 22,144 | | | $ | 1,016 | |
| U.S. northeast | | $ | 9,545 | | | $ | 7,673 | | | $ | (1,872 | ) | | $ | 7,673 | | | $ | (1,872 | ) |
| Corporate | | $ | 11,563 | | | $ | 12,537 | | | $ | 974 | | | $ | 11,899 | | | $ | 336 | |
| | | | | | | | | | | | | | | | | | | | | |
Adjusted EBITDA(A) | | $ | 131,927 | | | $ | 143,815 | | | $ | 11,888 | | | $ | 138,784 | | | $ | 6,857 | |
| Canada | | $ | 67,077 | | | $ | 75,021 | | | $ | 7,944 | | | $ | 69,352 | | | $ | 2,275 | |
| U.S. south | | $ | 58,883 | | | $ | 61,158 | | | $ | 2,275 | | | $ | 61,158 | | | $ | 2,275 | |
| U.S. northeast | | $ | 17,530 | | | $ | 20,173 | | | $ | 2,643 | | | $ | 20,173 | | | $ | 2,643 | |
| Corporate | | $ | (11,563 | ) | | $ | (12,537 | ) | | $ | (974 | ) | | $ | (11,899 | ) | | $ | (336 | ) |
Progressive Waste Solutions Ltd. – December 31, 2014 - 11
| | | | | | | | | Year ended | |
| | | | | | | | | | | | | | | December 31 | |
| | | 2013 | | | 2014 | | | | | | 2014 | | | | |
| | | (as reported) | | | (holding FX constant with the comparative period) | | | Change | | | (as reported) | | | Change | |
| | | | | | | | | | | | | | | | |
| Revenues | | $ | 2,026,039 | | | $ | 2,063,013 | | | $ | 36,974 | | | $ | 2,008,997 | | | $ | (17,042 | ) |
| Canada | | $ | 769,077 | | | $ | 799,816 | | | $ | 30,739 | | | $ | 745,800 | | | $ | (23,277 | ) |
| U.S. south | | $ | 876,888 | | | $ | 914,172 | | | $ | 37,284 | | | $ | 914,172 | | | $ | 37,284 | |
| U.S. northeast | | $ | 380,074 | | | $ | 349,025 | | | $ | (31,049 | ) | | $ | 349,025 | | | $ | (31,049 | ) |
| | | | | | | | | | | | | | | | | | | | | |
| Operating expenses | | $ | 1,249,252 | | | $ | 1,276,451 | | | $ | 27,199 | | | $ | 1,246,175 | | | $ | (3,077 | ) |
| Canada | | $ | 427,106 | | | $ | 448,304 | | | $ | 21,198 | | | $ | 418,028 | | | $ | (9,078 | ) |
| U.S. south | | $ | 554,205 | | | $ | 584,325 | | | $ | 30,120 | | | $ | 584,325 | | | $ | 30,120 | |
| U.S. northeast | | $ | 267,941 | | | $ | 243,822 | | | $ | (24,119 | ) | | $ | 243,822 | | | $ | (24,119 | ) |
| | | | | | | | | | | | | | | | | | | | | |
| SG&A (as reported) | | $ | 255,173 | | | $ | 262,211 | | | $ | 7,038 | | | $ | 254,023 | | | $ | (1,150 | ) |
| Canada | | $ | 71,457 | | | $ | 71,343 | | | $ | (114 | ) | | $ | 66,525 | | | $ | (4,932 | ) |
| U.S. south | | $ | 86,687 | | | $ | 89,313 | | | $ | 2,626 | | | $ | 89,313 | | | $ | 2,626 | |
| U.S. northeast | | $ | 35,870 | | | $ | 34,172 | | | $ | (1,698 | ) | | $ | 34,172 | | | $ | (1,698 | ) |
| Corporate | | $ | 61,159 | | | $ | 67,383 | | | $ | 6,224 | | | $ | 64,013 | | | $ | 2,854 | |
| | | | | | | | | | | | | | | | | | | | | |
EBITDA(A) (as reported) | | $ | 521,614 | | | $ | 524,351 | | | $ | 2,737 | | | $ | 508,799 | | | $ | (12,815 | ) |
| Canada | | $ | 270,514 | | | $ | 280,169 | | | $ | 9,655 | | | $ | 261,247 | | | $ | (9,267 | ) |
| U.S. south | | $ | 235,996 | | | $ | 240,534 | | | $ | 4,538 | | | $ | 240,534 | | | $ | 4,538 | |
| U.S. northeast | | $ | 76,263 | | | $ | 71,031 | | | $ | (5,232 | ) | | $ | 71,031 | | | $ | (5,232 | ) |
| Corporate | | $ | (61,159 | ) | | $ | (67,383 | ) | | $ | (6,224 | ) | | $ | (64,013 | ) | | $ | (2,854 | ) |
| | | | | | | | | | | | | | | | | | | | | |
| Adjusted SG&A | | $ | 246,012 | | | $ | 246,632 | | | $ | 620 | | | $ | 239,451 | | | $ | (6,561 | ) |
| Canada | | $ | 71,457 | | | $ | 71,343 | | | $ | (114 | ) | | $ | 66,525 | | | $ | (4,932 | ) |
| U.S. south | | $ | 86,687 | | | $ | 89,313 | | | $ | 2,626 | | | $ | 89,313 | | | $ | 2,626 | |
| U.S. northeast | | $ | 35,870 | | | $ | 34,172 | | | $ | (1,698 | ) | | $ | 34,172 | | | $ | (1,698 | ) |
| Corporate | | $ | 51,998 | | | $ | 51,804 | | | $ | (194 | ) | | $ | 49,441 | | | $ | (2,557 | ) |
| | | | | | | | | | | | | | | | | | | | | |
Adjusted EBITDA(A) | | $ | 530,775 | | | $ | 539,930 | | | $ | 9,155 | | | $ | 523,371 | | | $ | (7,404 | ) |
| Canada | | $ | 270,514 | | | $ | 280,169 | | | $ | 9,655 | | | $ | 261,247 | | | $ | (9,267 | ) |
| U.S. south | | $ | 235,996 | | | $ | 240,534 | | | $ | 4,538 | | | $ | 240,534 | | | $ | 4,538 | |
| U.S. northeast | | $ | 76,263 | | | $ | 71,031 | | | $ | (5,232 | ) | | $ | 71,031 | | | $ | (5,232 | ) |
| Corporate | | $ | (51,998 | ) | | $ | (51,804 | ) | | $ | 194 | | | $ | (49,441 | ) | | $ | 2,557 | |
Progressive Waste Solutions Ltd. – December 31, 2014 - 12
Gross revenue by service type
The table below outlines gross revenue by service type prepared on a consolidated basis and includes the impact of FX.
| | | Three months ended | | | | | | | | | Year ended | |
| | | | | | | | | December 31 | | | | | | | | | December 31 | |
| | | 2014 | | | % | | | 2013 | | | % | | | 2014 | | | % | | | 2013 | | | % | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Commercial | | $ | 176,188 | | | | 34.9 | | | $ | 174,117 | | | | 34.7 | | | $ | 704,016 | | | | 35.0 | | | $ | 703,507 | | | | 34.7 | |
| Industrial | | | 89,476 | | | | 17.7 | | | | 89,255 | | | | 17.8 | | | | 362,305 | | | | 18.0 | | | | 365,843 | | | | 18.1 | |
| Residential | | | 114,556 | | | | 22.7 | | | | 116,753 | | | | 23.3 | | | | 456,007 | | | | 22.7 | | | | 467,170 | | | | 23.1 | |
Transfer and disposal | | | 170,607 | | | | 33.8 | | | | 172,924 | | | | 34.4 | | | | 691,005 | | | | 34.4 | | | | 706,318 | | | | 34.9 | |
| Recycling | | | 14,647 | | | | 2.9 | | | | 16,253 | | | | 3.2 | | | | 63,645 | | | | 3.2 | | | | 59,864 | | | | 3.0 | |
| Other | | | 13,013 | | | | 2.6 | | | | 9,698 | | | | 1.9 | | | | 42,050 | | | | 2.1 | | | | 42,461 | | | | 2.1 | |
| Gross revenues | | | 578,487 | | | | 114.6 | | | | 579,000 | | | | 115.3 | | | | 2,319,028 | | | | 115.4 | | | | 2,345,163 | | | | 115.9 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Intercompany | | | (73,918 | ) | | | (14.6 | ) | | | (76,993 | ) | | | (15.3 | ) | | | (310,031 | ) | | | (15.4 | ) | | | (319,124 | ) | | | (15.9 | ) |
| Revenues | | $ | 504,569 | | | | 100.0 | | | $ | 502,007 | | | | 100.0 | | | $ | 2,008,997 | | | | 100.0 | | | $ | 2,026,039 | | | | 100.0 | |
Revenue growth or decline components – expressed in percentages and excluding FX
The table below has been prepared assuming Canadian and U.S. dollar parity except for percentages that include FX.
| | | Three months ended | | | Year ended | |
| | | | | | December 31 | | | | | | December 31 | |
| | | 2014 | | | 2013 | | | 2014 | | | 2013 | |
| | | | | | | | | | | | | |
| Price | | | | | | | | | | | | |
| Price | | | 2.3 | | | | 1.6 | | | | 2.1 | | | | 1.1 | |
| Fuel surcharges | | | (0.1 | ) | | | (0.2 | ) | | | (0.1 | ) | | | - | |
| Recycling and other | | | (0.4 | ) | | | 0.7 | | | | - | | | | 0.1 | |
| Total price growth | | | 1.8 | | | | 2.1 | | | | 2.0 | | | | 1.2 | |
| | | | | | | | | | | | | | | | | |
| Volume | | | 1.6 | | | | (1.1 | ) | | | (0.1 | ) | | | 0.7 | |
| Total organic growth | | | 3.4 | | | | 1.0 | | | | 1.9 | | | | 1.9 | |
| | | | | | | | | | | | | | | | | |
| Net acquisitions | | | 0.2 | | | | 2.5 | | | | (0.1 | ) | | | 6.2 | |
| Total growth excluding FX | | | 3.6 | | | | 3.5 | | | | 1.8 | | | | 8.1 | |
| | | | | | | | | | | | | | | | | |
| FX | | | (3.1 | ) | | | (2.3 | ) | | | (2.6 | ) | | | (1.3 | ) |
| Total growth (decline) including FX | | | 0.5 | | | | 1.2 | | | | (0.8 | ) | | | 6.8 | |
Progressive Waste Solutions Ltd. – December 31, 2014 - 13
The purpose of presenting this non-GAAP measure is 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 | | | Year ended | |
| | | | | | | | | December 31 | | | | | | | | | December 31 | |
| | | 2014 | | | 2013 | | | Change | | | 2014 | | | 2013 | | | Change | |
| | | | | | | | | | | | | | | | | | | |
Cash generated from operating activities | | $ | 116,517 | | | $ | 130,609 | | | $ | (14,092 | ) | | $ | 399,726 | | | $ | 450,735 | | | $ | (51,009 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Operating and investing | | | | | | | | | | | | | | | | | | | | | | | | |
Stock option expense(*) | | | 6,398 | | | | (182 | ) | | | 6,580 | | | | 9,695 | | | | 5,879 | | | | 3,816 | |
LTIP portion of restricted share expense | | | (333 | ) | | | (212 | ) | | | (121 | ) | | | (1,358 | ) | | | (862 | ) | | | (496 | ) |
| Acquisition and related | | | | | | | | | | | | | | | | | | | | | | | | |
| cost recoveries | | | 322 | | | | (2,349 | ) | | | 2,671 | | | | (591 | ) | | | (2,460 | ) | | | 1,869 | |
Non-operating or non-recurring expenses | | | 1,697 | | | | 2,965 | | | | (1,268 | ) | | | 4,067 | | | | 4,600 | | | | (533 | ) |
Changes in non-cash working capital items | | | (12,056 | ) | | | (19,706 | ) | | | 7,650 | | | | 20,677 | | | | (11,530 | ) | | | 32,207 | |
Capital and landfill asset purchases(*)(*) | | | (62,310 | ) | | | (59,396 | ) | | | (2,914 | ) | | | (237,413 | ) | | | (273,862 | ) | | | 36,449 | |
Proceeds from the sale of capital and landfill assets | | | 3,467 | | | | 5,551 | | | | (2,084 | ) | | | 28,528 | | | | 21,183 | | | | 7,345 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Financing | | | | | | | | | | | | | | | | | | | | | | | | |
Purchase of restricted shares(*) | | | - | | | | - | | | | - | | | | (2,095 | ) | | | (1,591 | ) | | | (504 | ) |
| Net realized foreign | | | | | | | | | | | | | | | | | | | | | | | | |
| exchange loss (gain) | | | 19 | | | | 419 | | | | (400 | ) | | | (150 | ) | | | (1,061 | ) | | | 911 | |
Free cash flow(B) | | $ | 53,721 | | | $ | 57,699 | | | $ | (3,978 | ) | | $ | 221,086 | | | $ | 191,031 | | | $ | 30,055 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Note: | | | | | | | | | | | | | | | | | | | | | | | | |
(*)Amounts exclude long-term incentive plan ("LTIP") compensation. | |
(*)(*)Capital and landfill asset purchases include infrastructure expenditures of approximately $1,800 and $4,600 for the three months ended and $14,300 and $38,600 for the years ended December 31, 2014 and 2013, respectively. | |
Progressive Waste Solutions Ltd. – December 31, 2014 - 14
Free cash flow(B) – adjusted EBITDA(A) approach
We typically calculate free cash flow(B) using an operations approach which reflects how we manage the business and our free cash flow(B).
| | | Three months ended | | | Year ended | |
| | | | | | | | | December 31 | | | | | | | | | December 31 | |
| | | 2014 | | | 2013 | | | Change | | | 2014 | | | 2013 | | | Change | |
| | | | | | | | | | | | | | | | | | | |
Adjusted EBITDA(A) | | $ | 138,784 | | | $ | 131,927 | | | $ | 6,857 | | | $ | 523,371 | | | $ | 530,775 | | | $ | (7,404 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Purchase of restricted shares(*) | | | - | | | | - | | | | - | | | | (2,095 | ) | | | (1,591 | ) | | | (504 | ) |
Capital and landfill asset purchases(*)(*) | | | (62,310 | ) | | | (59,396 | ) | | | (2,914 | ) | | | (237,413 | ) | | | (273,862 | ) | | | 36,449 | |
Proceeds from the sale of capital and landfill assets | | | 3,467 | | | | 5,551 | | | | (2,084 | ) | | | 28,528 | | | | 21,183 | | | | 7,345 | |
Landfill closure and post- closure expenditures | | | (1,293 | ) | | | (742 | ) | | | (551 | ) | | | (4,696 | ) | | | (4,276 | ) | | | (420 | ) |
Landfill closure and post- closure cost accretion expense | | | 1,518 | | | | 1,418 | | | | 100 | | | | 6,132 | | | | 5,655 | | | | 477 | |
| Interest on long-term debt | | | (15,483 | ) | | | (15,482 | ) | | | (1 | ) | | | (61,917 | ) | | | (60,754 | ) | | | (1,163 | ) |
| Non-cash interest expense | | | 759 | | | | 854 | | | | (95 | ) | | | 3,202 | | | | 3,436 | | | | (234 | ) |
| Current income tax expense | | | (11,721 | ) | | | (6,431 | ) | | | (5,290 | ) | | | (34,026 | ) | | | (29,535 | ) | | | (4,491 | ) |
Free cash flow(B) | | $ | 53,721 | | | $ | 57,699 | | | $ | (3,978 | ) | | $ | 221,086 | | | $ | 191,031 | | | $ | 30,055 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Note: | | | | | | | | | | | | | | | | | | | | | | | | |
(*)Amounts exclude LTIP compensation. | |
(*)(*)Capital and landfill asset purchases include infrastructure expenditures of approximately $1,800 and $4,600 for the three months ended and $14,300 and $38,600 for the years ended December 31, 2014 and 2013, respectively. | |
Funded debt to EBITDA (as defined and calculated in accordance with our consolidated facility)
The ratio of funded debt to EBITDA is 2.95 times.
(in thousands of U.S. dollars unless otherwise stated)
| | | 2014 | | | 2013 | |
| | | Consolidated Balance Sheet | | | Consolidated Statement of Operations and Comprehensive Income or Loss | | | Consolidated Balance Sheet | | | Consolidated Statement of Operations and Comprehensive Income or Loss | |
| | | Current | | | Average | | | Cumulative Average | | | Current | | | Average | | | Cumulative Average | |
| | | | | | | | | | | | | | | | | | | |
| March 31 | | $ | 0.9047 | | | $ | 0.9062 | | | $ | 0.9062 | | | $ | 0.9846 | | | $ | 0.9912 | | | $ | 0.9912 | |
| June 30 | | $ | 0.9367 | | | $ | 0.9170 | | | $ | 0.9116 | | | $ | 0.9513 | | | $ | 0.9772 | | | $ | 0.9841 | |
| September 30 | | $ | 0.8922 | | | $ | 0.9180 | | | $ | 0.9137 | | | $ | 0.9723 | | | $ | 0.9630 | | | $ | 0.9770 | |
| December 31 | | $ | 0.8620 | | | $ | 0.8805 | | | $ | 0.9052 | | | $ | 0.9402 | | | $ | 0.9525 | | | $ | 0.9707 | |
Quarterly dividend declared
The Company’s Board of Directors declared a quarterly dividend of $0.16 Canadian per share to shareholders of record on March 31, 2015. The dividend will be paid on April 15, 2015. The Company has designated these dividends as eligible dividends for the purposes of the Income Tax Act (Canada).
Progressive Waste Solutions Ltd. – December 31, 2014 - 15
(A) All references to “Adjusted EBITDA” in this document are to revenues less operating expense and SG&A, excluding certain SG&A expenses, on the 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 and landfill assets, interest on long-term debt, net foreign exchange gain or loss, net gain or loss on financial instruments, loss on extinguishment of debt, re-measurement gain on previously held equity investment, 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 sale of capital and landfill assets, net foreign exchange gain or loss, net gain or loss on financial instruments, loss on extinguishment of debt, re-measurement gain on previously held equity investment, 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, 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. Non-operating expenses include transaction costs or recoveries related to acquisitions, fair value adjustments attributable to stock options and restricted share expense. Non-recurring expenses include certain equity based compensation amounts, payments made to certain senior management on their departure and other non-recurring expenses from time-to-time. 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 certain operating locations with our own, exiting certain property and building and office leases, employee severance and employee relocation. 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) and is not indicative of our operating profitability.
Amortization – as a non-cash item amortization has no impact on the determination of free cash flow(B) and is not indicative of our operating profitability.
Net gain or loss on sale of capital and landfill assets – as a non-cash item the net gain or loss on sale of capital and landfill assets has no impact on the determination of free cash flow(B). In addition, the sale of capital and landfill assets does not reflect a primary operating activity and therefore represents a different class of income or expense than those included in adjusted EBITDA.
Interest on long-term debt – interest on long-term debt reflects our debt/equity mix, interest rates and borrowing position from time to time. Accordingly, interest on long-term debt 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) and is not indicative of our operating profitability.
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) and is not indicative of our operating profitability.
Loss on extinguishment of debt – as a non-cash item, loss on extinguishment is not indicative of our operating profitability and reflects a resulting charge from a change in our debt financing. Accordingly, it reflects our treasury/financing activities and represents a different class of expense than those included in adjusted EBITDA.
Re-measurement gain on previously held equity investment – as a non-cash item, the re-measurement gain on previously held equity investment has no impact on the determination of free cash flow(B) and is not indicative of our operating profitability.
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) and is not indicative of our operating profitability.
Progressive Waste Solutions Ltd. – December 31, 2014 - 16
All references to “Adjusted EBITA” in this document represent Adjusted EBITDA after deducting amortization of capital and landfill assets. All references to “Adjusted operating income or adjusted operating EBIT” in this document represent Adjusted EBITDA after adjusting for net gain or loss on the sale of capital and landfill assets and all amortization expense, including amortization expense recognized on the impairment of intangible assets. All references to “Adjusted net income” are to adjusted operating income after adjusting, as applicable, net gain or loss on financial instruments, re-measurement gain on previously held equity investment, loss on extinguishment of debt, other expenses and net income tax expense or recovery.
Adjusted EBITA, Adjusted operating income or adjusted operating EBIT and Adjusted net income should not be construed as measures of income or of cash flows. Collectively, these terms do not have standardized meanings prescribed by U.S. GAAP and are therefore unlikely to be comparable to similar measures used by other companies. Each of these measures are important for investors and are used by management in the management of its business. Adjusted operating income or adjusted operating EBIT removes the impact of a company’s capital structure and its tax rates when comparing the results of companies within or across industry sectors. Management uses Adjusted operating EBIT as a measure of how its operations are performing and to focus attention on amortization and depreciation expense to drive higher returns on invested capital. In addition, Adjusted operating EBIT is used by management as a means to measure the performance of its operating locations and is a significant metric in the determination of compensation for certain employees. Adjusted EBITA accomplishes a similar comparative result as Adjusted operating EBIT, but further removes amortization attributable to intangible assets. Intangible assets are measured at fair value when we complete an acquisition and amortized over their estimated useful lives. We view capital and landfill asset amortization as a proxy for the amount of capital reinvestment required to continue operating our business steady state. We believe that the replacement of intangible assets is not required to continue our operations as the costs associated with continuing operations are already captured in operating or selling, general and administration expenses. Accordingly, we view Adjusted EBITA as a measure that eliminates the impact of a company’s acquisitive nature and permits a higher degree of comparability across companies within our industry or across different sectors from an operating performance perspective. Finally, Adjusted net income is a measure of our overall earnings and profits and is further used to calculate our net income per share. Adjusted net income reflects what we believe is our “operating” net income which excludes certain non-operating income or expenses. Adjusted net income is an important measure of a company’s ability to generate profit and earnings for its shareholders which is used to compare company performance both amongst and between industry sectors.
(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.
2015 outlook assumptions and factors
The Company’s 2015 outlook includes a variety of assumptions and factors. The Company’s 2015 outlook is the aggregation of each location’s operating and financial plans for 2015. Each operating location builds its 2015 plan employing a bottom-up approach, which includes a forecast of price, volumes, new business volume, pricing growth and lost business. Each location’s outlook includes assumptions around productivity, operating costs, selling, general and administrative costs and capital and landfill expenditures. The assumptions applied at each operating location vary as a result of the environment in which it competes to provide service and the combination of assumptions is unique to each location. Accordingly, the assumptions applied in one location will differ from those applied in another, reflecting differences in the general economic environment, the locations share of the market, competition in the market, the locations operating strategy for the coming year, compensation levels, disposal rates, fuel prices, maintenance costs, to name a few.
The Company has prepared its 2015 outlook assuming the Canadian and U.S. dollars are exchanged at $0.9052. A strengthening of the Canadian dollar relative to the U.S. dollar results in higher reported revenues, EBITDA(A) and net income and also increases the Company’s reported balance sheet amounts. Should the Canadian dollar weaken relative to the U.S. dollar, the inverse result will occur.
The Company has assumed that there is no significant positive or negative change to the economic environment in the preparation of its outlook for 2015. Each operating location considers the economic environment in which it operates when preparing its 2015 outlook. A significant positive or negative change to the economic environment could have a significant impact on the business as a whole, or isolated locations where we operate. Significant economic changes will have the most pronounced impact on our services which are more sensitive to changes in the economic environment, including, most notably, industrial, disposal and material recycling services. Additional information pertaining to the sensitivity of certain services we provide relative to the economic environment are outlined in greater detail in the Risk and Uncertainties section of the Company’s Management Discussion and Analysis (“MD&A”).
Progressive Waste Solutions Ltd. – December 31, 2014 - 17
The Company has included forward looking information pertaining to revenues, specific events, selling, general and administrative expense, interest expense, taxation, share repurchases, our liquidity, withholding taxes and amortization expense in the Outlook section of its MD&A. Readers are cautioned that some or all of the forward looking information may not occur as we expect which could result in a significant difference between our 2015 outlook and the results we actually achieve.
We historically complete several acquisitions in an operating year. However, our outlook does not contemplate us acquiring any companies in 2015. The timing, nature, size and contribution of each acquisition to our financial performance is not known until the acquisition is consummated. Accordingly, we have specifically excluded any acquisitions from our 2015 outlook for these reasons. Readers are cautioned that our actual 2015 results may include acquisitions, which if completed will impact our 2015 results. Acquisitions will contribute additional revenues, earnings, additional capital requirements, and typically increase our long-term debt levels. Contributions from acquisitions completed in the prior year are included in our 2015 outlook.
Our estimate for capital and landfill expenditures follows the same bottom-up approach outlined above. Our capital and landfill estimate is subject to many factors and uncertainties, some of which are out of our control, including availability, timing of receipt and cost. Management may also withhold or advance capital at a pace inconsistent with its 2015 outlook due to factors that it deems necessary to best manage the Company’s financial resources which could impact the Company’s levels of debt and the interest expense expected in its 2015 outlook. Management may also withhold capital and landfill expenditures from its 2015 outlook or accelerate expenditures which are not otherwise contemplated in its 2015 plan. Finally, capital expenditures in respect of infrastructure projects may be delayed or advanced which could impact the projects contribution to our planned revenues, EBITDA(A) and net income for 2015.
Cash taxes are derived from estimated levels of income subject to tax across each of the Company’s locations and jurisdictions we operate in. We have assumed that losses remain available at current levels to shield income otherwise subject to tax and our estimate of cash tax reflects posted Federal, Provincial or State tax rates, as applicable. A significant change in either Federal, Provincial or State tax rates, or our availability of losses available to shield income otherwise subject to tax could result in a significant change in our cash tax estimate for 2015. Additionally, our operating performance could have a significant impact on our 2015 outlook for cash taxes. Cash taxes are predominantly incurred by the Company from its Canadian operations. A failure of the Canadian operations to deliver on its 2015 outlook would result in a reduction in cash taxes. Outperforming our 2015 outlook will result in higher cash tax amounts. Additionally, our cash tax estimates assume that we will continue to have available to us a similar level of tax deduction that was available to us in the prior year. Changes to either the availability or amount of deduction could result in a significant change to income subject to tax and ultimately cash taxes.
Free cash flow(B) is the result of aggregating each locations performance, capital spend and landfill closure and post-closure cost accretion, coupled with cash taxes and interest expense. As noted above, each of these items is subject to its own set of assumptions and uncertainties. Accordingly, a change in any one or all of these assumptions could have a positive or negative impact on our ability to generate our projected free cash flow(B) amounts for 2015.
Caution regarding forward looking statements
The Company’s 2015 outlook is subject to the same risks and uncertainties outlined in the Risk and Uncertainties section of the Company’s Management Discussion and Analysis, as applicable and investors are urged to fully review these sections before making an investment decision. This press release contains forward-looking statements and forward-looking information. Forward-looking statements are not based on historical facts but instead reflect our expectations, estimates or projections concerning future results or events. These statements can generally be identified by the use of forward-looking words or phrases such as “anticipate,” “believe,” “budget,” “continue,” “could,” “estimate,” “expect,” “forecast,” “goals,” “intend,” “intent,” “belief,” “may,” “plan,” “foresee,” “likely,” “potential,” “project,” “seek,” “strategy,” “synergies,” “targets,” “will,” “should,” “would,” or variations of such words and other similar words. Forward-looking statements include, but are not limited to, statements relating to future financial and operating results and our plans, objectives, prospects, expectations and intentions. These statements represent our intentions, plans, expectations, assumptions and beliefs about future events and are subject to risks, uncertainties and other factors. Numerous important factors could cause our actual results, performance or achievements to differ materially from those expressed in or implied by these forward-looking statements, including, without limitation, those factors outlined in the Risks and Uncertainties section of the Company’s Management Discussion and Analysis. We caution that the list of factors is illustrative and by no means exhaustive. In addition, we cannot assure you that any of our expectations, estimates or projections will be achieved.
All forward-looking statements should be evaluated with the understanding of their inherent uncertainty. All forward-looking statements in this press release are qualified by these cautionary statements. The forward-looking statements in this press release are made as of the date of this press release and we disclaim any obligation to publicly update any forward-looking statement to reflect subsequent events or circumstances, except as required by law.
Progressive Waste Solutions Ltd. – December 31, 2014 - 18
About Progressive Waste Solutions Ltd.
As one of North America’s largest full-service waste management companies, we provide non-hazardous solid waste collection, recycling and disposal services to commercial, industrial, municipal and residential customers in 13 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 Ltd., visit our website at www.progressivewaste.com.
Progressive Waste Solutions Ltd.
Chaya Cooperberg
VP, Investor Relations and Corporate Communications
Tel: (905) 532-7517
Email: chaya.cooperberg@progressivewaste.com
| Management will hold a conference call on Thursday, February 26, 2015, at 8:30 a.m. (ET) to discuss results for the three months and year ended December 31, 2014. Participants may listen to the call by dialing 1-888-300-0053, conference ID 65620734, 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 Thursday, March 12, 2015, at midnight, and can be accessed by dialing 1-855-859-2056, conference ID 65620734. 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. |
Progressive Waste Solutions Ltd. – December 31, 2014 - 19
