1
Exhibit 99.1
PHILIP SERVICES CORP.
CONSOLIDATED STATEMENTS OF EARNINGS
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(in thousands of US dollars,
except share and per share THREE MONTHS SIX MONTHS
amounts and in US GAAP) ENDED JUNE 30 ENDED JUNE 30
(unaudited) 1997 1996 1997 1996
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(Restated) (Restated)
(Note B) (Note B)
Revenue (Note A)
Metals recovery $258,788 $ 58,179 $461,746 $119,378
Industrial services 91,078 64,951 152,994 117,128
Utilities management 3,891 -- 8,618 --
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353,757 123,130 623,358 236,506
Operating expenses 291,735 96,556 510,282 183,991
Selling, general and
administrative costs 22,676 12,777 46,254 24,460
Depreciation and
amortization 9,140 6,266 17,590 11,291
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Income from operations 30,206 7,531 49,232 16,764
Interest expense 7,963 4,931 13,979 9,973
Other income and
expense - net (676) (1,270) (4,051) (1,799)
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Earnings from continuing
operations before tax 22,919 3,870 39,304 8,590
Income taxes 7,011 810 11,923 1,979
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Earnings from
continuing operations 15,908 3,060 27,381 6,611
Discontinued operations
(net of tax) -- 4,835 -- 5,298
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Net earnings $15,908 $ 7,895 $ 27,381 $ 11,909
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Basic earnings per share
Continuing operations $0.22 $0.07 $0.39 $0.17
Discontinued operations $ -- $0.11 $ -- $0.12
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$0.22 $0.18 $0.39 $0.29
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Fully diluted earnings
per share
Continuing operations $0.22 $0.06 $0.38 $0.14
Discontinued operations $ -- $0.09 $ -- $0.10
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$0.22 $0.15 $0.38 $0.24
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Weighted average
number of common
shares outstanding 71,327 43,688 70,970 40,586
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A. Revenue figures have been reclassified to disclose the Company's By-
Products Recovery and Environmental Services operations as Industrial Services.
B. Prior year figures have been restated to disclose the Company's
municipal and commercial solid waste business as discontinued operations.
2
PHILIP SERVICES CORP.
CONSOLIDATED BALANCE SHEETS
(in thousands of US dollars and in US GAAP)
(unaudited)
JUNE 30 December 31 June 30
1997 1996 1996
------- ----------- -------
ASSETS
Current assets
Cash and equivalents $ 7,602 $ 6,044 $ 607
Accounts receivable 257,088 199,921 107,788
Inventory for resale 239,312 181,080 84,976
Other current assets 36,862 44,690 24,551
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540,864 431,735 217,922
Fixed assets 341,494 254,087 267,296
Goodwill 261,929 235,622 213,980
Other assets 79,100 55,792 52,604
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$1,223,387 $ 977,236 $ 751,802
========== ========== ==========
LIABILITIES & SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable and
accrued liabilities $ 150,846 $ 158,104 $ 95,412
Current maturities of
long-term debt 7,956 19,956 7,812
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158,802 178,060 103,224
Long-term debt 493,948 282,825 179,012
Deferred income taxes 33,714 31,227 26,207
Other liabilities 40,025 35,217 29,197
Convertible subordinated
debentures -- -- 119,875
Shareholders' Equity 496,898 449,907 294,287
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$1,223,387 $ 977,236 $ 751,802
========== ========== ==========
3
PHILIP SERVICES CORP.
CONSOLIDATED STATEMENTS OF CASH FLOWS
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(in thousands of US dollars and in US GAAP) SIX MONTHS ENDED JUNE 30
(unaudited) 1997 1996
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(Restated)
(Note B)
OPERATING ACTIVITIES
Net earnings from continuing operations $ 27,381 $ 6,611
Items included in earnings not affecting cash
Depreciation and amortization 13,844 8,547
Amortization of goodwill 3,746 2,744
Deferred income taxes 1,886 (2,884)
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Cash flow from continuing operations 46,857 15,018
Cash used to finance working capital (112,656) (31,485)
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Cash used in continuing operating activities (65,799) (16,467)
Cash provided by discontinued operating activities -- 21,590
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Cash provided by (used in) operating activities (65,799) 5,123
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INVESTING ACTIVITIES
Proceeds from sale of solid waste operations 17,000 38,979
Acquisitions -- including acquired cash
(bank indebtedness) (104,416) (5,377)
Purchase of fixed assets (25,900) (11,177)
Other (14,273) (17,781)
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Cash provided by (used in) continuing
investing activities (127,589) 4,644
Cash used in investing activities
of discontinued operations -- (10,291)
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Cash used in investing activities (127,589) (5,647)
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FINANCING ACTIVITIES
Changes in long-term debt 192,050 (46,388)
Common shares issued 2,896 59,216
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Cash provided by continuing financing activities 194,946 12,828
Cash used in financing activities
of discontinued operations -- (11,697)
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Cash provided by financing activities 194,946 1,131
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Net change in cash for the period 1,558 607
Cash position, beginning of period 6,044 --
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Cash position, end of period $ 7,602 $ 607
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The accompanying notes are an integral part of these financial statements.