Exhibit 1
LAIDLAW ANNOUNCES THIRD QUARTER FISCAL 2003 RESULTS:
TO HOST CONFERENCE CALL
Naperville, IL, July 9, 2003
Laidlaw International, Inc. (TSX:BUS) today reported results for the third
quarter ended May 31, 2003. For the quarter, consolidated revenue of $1,202.8
million resulted in a net income of $62.2 million compared to revenue of
$1,187.3 million and net income of $42.8 million in the same period last year.
Laidlaw had previously announced that it had completed its reorganization
process and exited from Chapter 11 on June 23, 2003.
"Our school bus and healthcare operations continued to show revenue growth,"
said Kevin Benson, President & Chief Executive Officer. "With our exit from
Chapter 11 finally completed, we are now focused on continuing this growth and
improving profitability while addressing the adverse economic conditions and
other issues impacting our Greyhound operations."
Consolidated revenue for the quarter improved by 1.3% to $1,202.8 million from
the $1,187.3 million recorded in the comparable period last year. Education
Services, Healthcare Transportation and Emergency Management all recorded
increases in the quarter, offsetting declines in Greyhound and Public Transit.
Net income for the quarter was $62.2 million, an improvement of $19.4 million or
45.3% over the $42.8 million recorded for the same period in 2002. This increase
was primarily due to reduced goodwill amortization following the Company's
adoption of new accounting guidelines regarding goodwill in the first quarter of
this year.
Net cash provided by operating activities in the quarter was $199.7 million
compared with $141.4 million in the same period last year, largely due to
reductions in working capital.
In measuring its performance, the Company regards earnings before interest,
income taxes, depreciation, amortization, other income, other financing related
expenses and cumulative effect of change in accounting principle ("EBITDA") as
useful information regarding the Company's ability to service or incur debt.
EBITDA for the quarter was $150.9 million, 6.7% below the $161.7 million
recorded in the comparable period last year. This decline in EBITDA largely
reflects the difficult operating conditions faced by Greyhound Lines. Total
EBITDA for all the other companies in Laidlaw's portfolio, including Greyhound
Canada, increased by 3.5% to $152.9 million from the $147.7 million recorded
last year. The improvement reflects revenue growth and generally good cost
control, together with relatively stable insurance costs.
"The healthcare companies showed improvements in revenue, as their success in
improving unit revenues has more than offset declines in the overall number of
transports," continued Benson. "Our school bus operations also performed well
despite competitive pressures. With the school year now largely complete, we are
confident that this group will comfortably achieve its forecast results. The one
disappointment is in the Greyhound group, which is
substantially below last year. We have made recent changes to the management
team at Greyhound and we will be working closely with them to improve the
company's operating performance."
FORWARD-LOOKING STATEMENTS
Certain statements contained in this press release that are not historical
facts, including statements regarding potential sources of revenue, the expected
impact of accident claims reserves on the Company's results of operations, and
initiatives at the Company's Greyhound business, are forward-looking statements
within the meaning of the Private Securities Litigation Reform Act of 1995. Such
statements involve certain risks, uncertainties and assumptions that include,
but are not limited to; the successful completion of the registration of the
common stock of the Company with the U.S. Securities and Exchange Commission,
particularly in the light of the scope limitation that is contained in the audit
report for the financial statements, and, upon registration of such shares with
the SEC, obtaining approval for the listing of these shares on the New York
Stock Exchange; actual experience regarding accident claims; the Company's
ability to realize revenue from potential new sources; the Company's ability to
implement initiatives designed to increase operating efficiencies and improve
results; general economic conditions; and other factors detailed from time to
time in the Company's filings with the SEC. Should one or more of these risks or
uncertainties materialize, actual outcomes may vary materially from those
indicated.
Laidlaw International, Inc. is a holding company for North America's largest
providers of school and inter-city bus transport, public transit, patient
transportation and emergency department management services.
Laidlaw will host an investor/analyst call at 8:30 a.m. EDT on Thursday, July
10, 2003.
Laidlaw International, Inc.
Third Quarter Earnings Call
416-695-6120
1-800-446-4472
Reservation Number T434745L
-30-
Contact: Douglas A. Carty, Senior Vice President & Chief Financial Officer
Laidlaw International, Inc.
(630) 848-3018
www.laidlaw.com
LAIDLAW INTERNATIONAL, INC.
(DEBTOR-IN-POSSESSION AS OF JUNE 28, 2001)
CONSOLIDATED BALANCE SHEETS
(U.S. $ IN MILLIONS)
MAY 31, August 31,
2003 2002
---------- ----------
(UNAUDITED)
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 390.3 $ 343.5
Restricted cash and cash equivalents 44.7 75.8
Short-term deposits and marketable securities 31.7 16.1
Trade accounts receivable 630.6 490.4
Other receivables 49.9 54.9
Income taxes recoverable 27.4 29.2
Parts and supplies 53.1 50.4
Other current assets 63.7 56.3
---------- ----------
TOTAL CURRENT ASSETS 1,291.4 1,116.6
---------- ----------
LONG-TERM INVESTMENTS 469.0 417.9
---------- ----------
PROPERTY AND EQUIPMENT
Land 164.4 162.2
Buildings 294.7 284.3
Vehicles 2,282.8 2,128.3
Other 402.1 417.2
---------- ----------
3,144.0 2,992.0
Less: Accumulated depreciation 1,442.2 1,314.3
---------- ----------
1,701.8 1,677.7
---------- ----------
OTHER ASSETS
Goodwill (net of accumulated amortization and impairments of
$2,972.1; August 31, 2002 - $776.0) 781.9 2,976.8
Pension asset 16.8 10.8
Deferred charges and other assets 20.0 12.0
---------- ----------
818.7 2,999.6
---------- ----------
TOTAL ASSETS $ 4,280.9 $ 6,211.8
========== ==========
LAIDLAW INTERNATIONAL, INC.
(DEBTOR-IN-POSSESSION AS OF JUNE 28, 2001)
CONSOLIDATED BALANCE SHEETS
(U.S. $ IN MILLIONS)
MAY 31, August 31,
2003 2002
---------- ----------
(UNAUDITED)
LIABILITIES
LIABILITIES NOT SUBJECT TO COMPROMISE
CURRENT LIABILITIES
Accounts payable $ 107.5 $ 109.7
Accrued liabilities 524.9 504.1
Current portion of long-term debt 17.7 20.3
---------- ----------
TOTAL CURRENT LIABILITIES 650.1 634.1
LONG-TERM DEBT 240.6 204.4
OTHER LONG-TERM LIABILITIES 666.0 442.1
LIABILITIES SUBJECT TO COMPROMISE 3,977.1 3,977.1
---------- ----------
TOTAL LIABILITIES 5,533.8 5,257.7
---------- ----------
SHAREHOLDERS' EQUITY (DEFICIENCY)
Preference Shares 7.9 7.9
Common Shares; issued and outstanding
325,927,870 (August 31, 2002 - 325,927,870) 2,222.6 2,222.6
Accumulated other comprehensive loss (379.7) (258.7)
Deficit (3,103.7) (1,017.7)
---------- ----------
TOTAL SHAREHOLDERS' EQUITY (DEFICIENCY) (1,252.9) 954.1
---------- ----------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIENCY) $ 4,280.9 $ 6,211.8
========== ==========
2
LAIDLAW INTERNATIONAL, INC.
(DEBTOR-IN-POSSESSION AS OF JUNE 28, 2001)
CONSOLIDATED STATEMENTS OF OPERATIONS
(U.S. $ IN MILLIONS EXCEPT PER SHARE AMOUNTS)
(UNAUDITED)
THREE MONTHS ENDED NINE MONTHS ENDED
MAY 31, MAY 31,
--------------------------- ---------------------------
2003 2002 2003 2002
--------- --------- --------- ---------
REVENUE
Education services $ 457.9 $ 451.0 $ 1,314.8 $ 1,299.4
Public transit services 72.8 81.0 212.1 233.9
Greyhound 291.4 297.5 847.5 863.2
Healthcare transportation services 259.8 251.1 759.3 737.3
Emergency management services 120.9 106.7 352.0 320.9
--------- --------- --------- ---------
TOTAL REVENUE 1,202.8 1,187.3 3,485.7 3,454.7
Operating expenses 929.8 909.7 2,742.8 2,680.4
Selling, general and administrative expenses 122.1 115.9 350.1 337.7
Depreciation expense 76.8 76.9 228.4 225.5
Amortization expense 0.4 22.7 0.9 68.2
--------- --------- --------- ---------
INCOME FROM OPERATING SEGMENTS 73.7 62.1 163.5 142.9
Interest expense (6.6) (6.6) (19.6) (21.5)
Other financing related expenses (3.9) (13.1) (35.0) (42.6)
Other income 0.5 1.9 15.0 9.0
--------- --------- --------- ---------
INCOME BEFORE INCOME TAXES 63.7 44.3 123.9 87.8
Income tax expense (1.5) (1.5) (4.5) (4.7)
--------- --------- --------- ---------
INCOME BEFORE CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING
PRINCIPLE 62.2 42.8 119.4 83.1
Cumulative effect of change in accounting
principle - - (2,205.4) -
--------- --------- --------- ---------
NET INCOME (LOSS) $ 62.2 $ 42.8 ($2,086.0) $ 83.1
========= ========= ========= =========
BASIC EARNINGS (LOSS) PER SHARE
Income before cumulative effect of change in accounting
principle $ 0.19 $ 0.13 $ 0.37 $ 0.25
Cumulative effect of change in accounting principle - - (6.77) -
--------- --------- --------- ---------
Net income (loss) $ 0.19 $ 0.13 ($ 6.40) $ 0.25
========= ========= ========= =========
DILUTED EARNINGS (LOSS) PER SHARE
Income before cumulative effect of change in accounting
principle $ 0.19 $ 0.13 $ 0.37 $ 0.25
Cumulative effect of change in accounting principle - - (6.77) -
--------- --------- --------- ---------
Net income (loss) $ 0.19 $ 0.13 ($ 6.40) $ 0.25
========= ========= ========= =========
3
LAIDLAW INTERNATIONAL, INC.
(DEBTOR-IN-POSSESSION AS OF JUNE 28, 2001)
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(U.S. $ IN MILLIONS)
(UNAUDITED)
THREE MONTHS ENDED NINE MONTHS ENDED
MAY 31, MAY 31,
----------------------- -------------------------
2003 2002 2003 2002
-------- -------- -------- --------
NET INCOME (LOSS) $ 62.2 $ 42.8 ($2,086.0) $ 83.1
Unrealized gains (losses) on securities net of
reclassification adjustments for losses included in
net income (net of NIL taxes) 5.7 (4.4) 9.2 2.1
Foreign currency translation adjustments
arising during the period (net of NIL taxes) 29.7 17.8 46.2 4.9
Minimum pension liability adjustments
(net of NIL taxes) - - (176.4) (72.8)
-------- -------- -------- --------
COMPREHENSIVE INCOME (LOSS) $ 97.6 $ 56.2 ($2,207.0) $ 17.3
======== ======== ======== ========
4
LAIDLAW INTERNATIONAL, INC.
(DEBTOR-IN-POSSESSION AS OF JUNE 28, 2001)
CONSOLIDATED STATEMENTS OF CASH FLOWS
(U.S. $ IN MILLIONS)
(UNAUDITED)
THREE MONTHS ENDED NINE MONTHS ENDED
MAY 31, MAY 31,
------------------------ -------------------------
2003 2002 2003 2002
-------- -------- -------- --------
OPERATING ACTIVITIES
Net income (loss) for the period $ 62.2 $ 42.8 ($2,086.0) $ 83.1
Items not affecting cash:
Depreciation and amortization 77.2 99.6 229.3 293.7
Other financing related expenses 3.9 13.1 35.0 42.6
Cumulative effect of change in accounting principle - - 2,205.4 -
Other items (1.1) (1.9) (8.1) (10.8)
Increase (decrease) in claims liability and
professional liability insurance accruals 7.4 11.9 56.1 (4.9)
Decrease in accrued interest (4.4) (4.4) (4.3) (4.9)
Cash provided by (used in financing)
other working capital items 24.9 (7.8) (141.1) (102.6)
Cash portion of other financing related expenses (4.3) (4.5) (23.4) (23.2)
Decrease (increase) in restricted cash and cash equivalents
33.9 (7.4) 0.9 (21.3)
-------- -------- -------- --------
NET CASH PROVIDED BY OPERATING ACTIVITIES $ 199.7 $ 141.4 $ 263.8 $ 251.7
-------- -------- -------- --------
INVESTING ACTIVITIES
Purchase of property, equipment and other assets,
net of proceeds from sale ($ 104.2) ($ 75.6) ($ 208.7) ($ 153.7)
Expended on acquisitions (1.4) (1.4) (4.6) (1.9)
Net increase in investments (3.0) (10.2) (37.3) (19.4)
Proceeds from sale of assets - - - 4.2
-------- -------- -------- --------
NET CASH USED IN INVESTING ACTIVITIES ($ 108.6) ($ 87.2) ($ 250.6) ($ 170.8)
-------- -------- -------- --------
FINANCING ACTIVITIES
Net increase (decrease) in long-term debt
and other long-term liabilities $ 18.6 ($ 15.7) $ 33.6 ($ 29.6)
-------- -------- -------- --------
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES $ 18.6 ($ 15.7) $ 33.6 ($ 29.6)
-------- -------- -------- --------
NET INCREASE IN CASH AND CASH EQUIVALENTS $ 109.7 $ 38.5 $ 46.8 $ 51.3
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD* 280.6 294.0 343.5 281.2
-------- -------- -------- --------
CASH AND CASH EQUIVALENTS - END OF PERIOD* $ 390.3 $ 332.5 $ 390.3 $ 332.5
======== ======== ======== ========
*These amounts represent the unrestricted cash and cash equivalents of the
Company.
5
LAIDLAW INTERNATIONAL, INC.
(DEBTOR-IN-POSSESSION AS OF JUNE 28, 2001)
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(U.S. $ IN MILLIONS)
(UNAUDITED)
THREE MONTHS ENDED NINE MONTHS ENDED
MAY 31, MAY 31,
----------------------- -----------------------
2003 2002 2003 2002
------- ------- ------- -------
EBITDA, as reported $ 150.9 $ 161.7 $ 392.8 $ 436.6
Cash paid for interest (11.7) (11.6) (25.0) (28.1)
Cash paid for other financing related
expenses 0.4 (8.6) (11.6) (19.4)
Other income (loss) 0.5 1.9 15.0 9.0
Cash received (paid) for income taxes 6.0 2.4 4.4 8.4
Increase (decrease) in claims
liability and professional liability
insurance accruals 7.4 11.9 56.1 (4.9)
Cash provided by (used in
financing) other working capital items 24.9 (7.8) (141.1) (102.6)
Decrease (increase) in restricted
cash and cash equivalents 33.9 (7.4) 0.9 (21.3)
Other (12.6) (1.1) (27.7) (26.0)
------- ------- ------- -------
Net cash provided by operating activities $ 199.7 $ 141.4 $ 263.8 $ 251.7
======= ======= ======= =======
EBITDA, a non-GAAP financial measure, represents earnings before interest,
income taxes, depreciation, amortization, other income, other financing related
expenses and cumulative effect of change in accounting principle.
EBITDA is presented solely as a supplemental disclosure with respect to
liquidity because the Company believes it provides useful information regarding
its ability to service or incur debt.
6
LAIDLAW INTERNATIONAL, INC.
OPERATING HIGHLIGHTS
(U.S. IN $MILLIONS)
(UNAUDITED)
THREE MONTHS ENDED NINE MONTHS ENDED
MAY 31, MAY 31,
-------------------------- --------------------------
2003 2002 2003 2002
-------- -------- -------- --------
REVENUE
Education Services $ 457.9 $ 451.0 $1,314.8 $1,299.4
Public Transit Services 72.8 81.0 212.1 233.9
Greyhound 291.4 297.5 847.5 863.2
Healthcare Transportation Services 259.8 251.1 759.3 737.3
Emergency Management Services 120.9 106.7 352.0 320.9
-------- -------- -------- --------
Consolidated $1,202.8 $1,187.3 $3,485.7 $3,454.7
======== ======== ======== ========
INCOME FROM OPERATIONS BEFORE
DEPRECIATION AND AMORTIZATION
Education Services $ 116.1 $ 116.0 $ 302.0 $ 321.8
Public Transit Services 5.6 2.7 7.3 4.0
Greyhound 3.4 14.5 5.8 32.8
Healthcare Transportation Services 18.6 22.8 55.8 57.9
Emergency Management Services 7.2 5.7 21.9 20.1
-------- -------- -------- --------
Consolidated $ 150.9 $ 161.7 $ 392.8 $ 436.6
======== ======== ======== ========
OPERATING MARGINS BEFORE
DEPRECIATION AND AMORTIZATION
Education Services 25.4% 25.7% 23.0% 24.8%
Public Transit Services 7.7% 3.3% 3.4% 1.7%
Greyhound 1.2% 4.9% 0.7% 3.8%
Healthcare Transportation Services 7.2% 9.1% 7.3% 7.9%
Emergency Management Services 6.0% 5.3% 6.2% 6.3%
Consolidated 12.5% 13.6% 11.3% 12.6%
INCOME (LOSS) FROM OPERATIONS
Education Services $ 68.3 $ 64.3 $ 160.1 $ 168.1
Public Transit Services 3.0 (1.3) (0.6) (8.1)
Greyhound (12.2) (3.6) (39.9) (19.8)
Healthcare Transportation Services 8.5 2.3 25.5 (1.4)
Emergency Management Services 6.1 0.4 18.4 4.1
-------- -------- -------- --------
Consolidated $ 73.7 $ 62.1 $ 163.5 $ 142.9
======== ======== ======== ========
OPERATING MARGINS
Education Services 14.9% 14.3% 12.2% 12.9%
Public Transit Services 4.1% -1.6% -0.3% -3.5%
Greyhound -4.2% -1.2% -4.7% -2.3%
Healthcare Transportation Services 3.3% 0.9% 3.4% -0.2%
Emergency Management Services 5.0% 0.4% 5.2% 1.3%
Consolidated 6.1% 5.2% 4.7% 4.1%