SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
Quarterly Report Pursuant to Section 13 or 15 (d) of the
Securities Exchange Act of 1934
For The Quarter Ended June 30, 1996
Commission File Number 0-14881
WASTE RECOVERY, INC.
(Exact Name of Registrant as Specified in its Charter)
TEXAS 75-1833498
(State or Other Jurisdiction of (I.R.S. Employer Identification No.)
Incorporation or Organization)
309 S. PEARL EXPRESSWAY, DALLAS, TX 75201
(Address of Principal Executive Offices) (Zip Code)
(214) 741-3865
(Registrant's Telephone Number, Including Area Code)
Indicate by check mark whether the registrant: (1) has filed all
reports required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 12 months or for such shorter period that the
registrant was required to file such reports, and (2) has been subject to such
filing requirements for the past 90 days. Yes [ X ] No [ ]
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, at the latest practicable date. Common stock, no par
value 10,955,070, August 7, 1996.
PART I: FINANCIAL INFORMATION
Item 1. Financial Statements
WASTE RECOVERY, INC.
Consolidated Balance Sheets
Assets June 30, 1996 December 31, 1995
------ ------------- -----------------
(Unaudited)
Current Assets:
Cash and cash equivalents $ 173,501 $ 726,562
Accounts receivable, less allowance for doubtful accounts
of $34,380 and $27,083, respectively 1,578,310 1,887,426
Other receivables (note 2) 275,715 5,758
Inventories (note 3) 718,624 645,651
Other current assets 449,537 149,912
----------- ----------
Total current assets 3,195,687 3,415,309
----------- ----------
Property, plant and equipment 12,506,547 11,700,255
Less accumulated depreciation 7,327,478 6,840,820
----------- ----------
Net property, plant and equipment 5,179,069 4,859,435
----------- ----------
Restricted cash and cash equivalents (note 2) 517,235 998,035
Investment in Waste Recovery - Illinois (146,094) 258,539
Bond and debt issuance costs, less accumulated amortization of
$173,122 and $153,287, respectively 155,212 175,046
Deferred income taxes 447,543 447,543
Goodwill, less accumulated amortization of $68,607 and
$41,164, respectively 480,252 507,695
Other assets (note 2) 574,878 70,797
---------- ----------
$10,403,782 $10,732,399
========== ===========
See accompanying notes to consolidated financial statements.
WASTE RECOVERY, INC.
Consolidated Balance Sheets
Liabilities and Stockholders' Equity June 30, 1996 December 31, 1995
------------------------------------ ------------- -----------------
(unaudited)
Current Liabilities:
Notes payable $ 5,492 $ 28,945
Convertible subordinated debentures (note 4) 495,000 40,000
Current installments of long-term debt (note 5) 2,276,105 427,552
Current installments of capital lease obligations 101,498 93,423
Accounts payable 2,098,878 1,996,857
Accrued wages and payroll taxes 193,497 174,753
Other accrued liabilities 337,278 372,800
Deferred revenue 43,476 43,476
----------- -----------
Total current liabilities 5,551,224 3,177,806
----------- -----------
Convertible subordinated debentures, noncurrent (note 4) - 495,000
Long-term debt, excluding current installments (note 5) 1,624,311 3,591,376
Obligations under capital leases, excluding current
installments 158,352 178,797
Deferred revenue, noncurrent 224,602 246,338
Note payable 153,080 144,076
----------- -----------
Total liabilities 7,711,569 7,833,393
----------- -----------
Stockholders' Equity (notes 4 and 7):
Cumulative preferred stock, $1.00 par value, 250,000 shares authorized,
203,580 issued and outstanding in 1996 and 1995 (liquidating preference
$14.26 per share, aggregating
$2,902,687) 203,580 203,580
Preferred stock, $1.00 par value, authorized and unissued
9,750,000 shares in 1996 and 1995
Common stock, no par value, authorized 30,000,000 shares,
10,955,070 and 10,830,170 shares issued and outstanding
in 1996 and 1995, respectively 407,800 407,800
Additional paid-in capital 13,391,591 13,320,410
Accumulated deficit (11,236,878) (10,958,904)
2,766,093 2,972,886
Treasury stock, at cost, 103,760 common shares (73,8800) (73,880)
Total stockholders' equity 2,692,213 2,899,006
$10,403,782 $10,732,399
=========== ===========
See accompanying notes to consolidated financial statements.
WASTE RECOVERY, INC.
Consolidated Statements Of Operations
(Unaudited)
Three Months Ended June 30,
---------------------------
1996 1995
Revenues:
Tire-derived fuel sales $ 249,038 $ 239,845
Wire sales (note 6) 84,264 -
Disposal fees, hauling and other revenue 4,074,029 2,996,812
----------- -----------
Total revenues 4,407,331 3,236,657
Operating expenses 2,815,294 2,318,289
----------- -----------
1,592,037 918,368
General and administrative expenses 728,098 527,266
Depreciation and amortization 273,838 256,016
----------- -----------
590,101 135,086
----------- -----------
Other income (expense):
Interest income 7,537 7,167
Interest expense (133,713) (119,632)
Other income 4,949 12,333
Equity in loss from partnership operations (162,438) (29,640)
(283,665) (129,772)
Net income before income taxes 306,436 5,314
Provision for income taxes
- -
Net income 306,436 5,314
=========== ===========
Undeclared cumulative preferred stock dividends 35,529 35,528
=========== ===========
Net income (loss) available to common shareholders $ 270,907 $ (30,214)
=========== ===========
Net income (loss) per share $ 0.02 $ 0.00
=========== ===========
Weighted average number of common and dilutive
common equivalent shares outstanding 11,568,655 8,596,611
=========== ===========
See accompanying notes to consolidated financial statements.
WASTE RECOVERY, INC.
Consolidated Statements Of Operations
(Unaudited)
Six Months Ended June 30,
-------------------------
1996 1995
Revenues:
Tire-derived fuel sales $ 589,231 $ 497,360
Wire sales (note 6) 117,709 -
Disposal fees, hauling and other revenue 6,879,359 5,924,009
---------- ----------
Total revenues 7,586,299 6,421,369
Operating expenses 5,295,826 4,628,540
---------- ----------
2,290,473 1,792,829
General and administrative expenses 1,437,978 1,062,732
Depreciation and amortization 538,032 462,927
---------- -----------
314,463 267,170
---------- -----------
Other income (expense):
Interest income 19,648 14,865
Interest expense (262,130) (231,457)
Other income 49,562 37,745
Gains on sales of property and equipment 5,057 -
Equity in loss from partnership operations (404,574) (56,855)
----------- -----------
592,437 (235,702)
Net income (loss) before income taxes (277,974) 31,468
Provision for income taxes
- -
Net income (loss) (277,974) 31,468
Undeclared cumulative preferred stock dividends 71,058 70,666
=========== ===========
Net loss available to common shareholders $ (349,032) $ (39,198)
=========== ===========
Net loss per share $ (0.03) $ 0.00
=========== ===========
Weighted average number of common and dilutive
common equivalent shares outstanding 10,835,312 7,999,345
=========== ===========
See accompanying notes to consolidated financial statements.
WASTE RECOVERY, INC.
Consolidated Statements of Cash Flows
(Unaudited)
Six Months Ended June 30,
-------------------------
1996 1995
Cash flows from operating activities:
Net income (loss) $ (277,974) $ 31,468
Adjustments to reconcile net income to net cash provided
(used) by operating activities:
Depreciation and amortization 511,549 656,734
Gain on sale of property, plant and equipment (5,057) -
Amortization of goodwill 27,443 -
Interest imputed on discounted note payable 9,004 -
Equity in loss from partnership operations 404,633 56,855
Stock issued to Directors and on debenture conversion 13,995 12,000
Changes in assets and liabilities:
Accounts receivable 309,116 356,662
Note and other receivables (6,571) -
Inventories (72,973) (541,886)
Other current assets (299,625) (26,555)
Other assets (4,081) 13,105
Accounts payable 157,258 (144,931)
Accrued liabilities (16,778) 145,784
Deferred revenue (21,736)
-----------
-
Net cash provided by operating activities 728,203 559,236
----------- ----------
Cash flows from investing activities:
Proceeds received on note and other receivables - 355,879
Proceeds received on sale of property, plant and equipment 6,000 -
Purchases of property, plant and equipment (770,988) (607,285)
Purchase of Domino Salvage, Tire Division, Inc.,
net of cash received of $16,165 - (151,441)
Cash placed in restricted accounts (19,200) (12,800)
Cash payments out of restricted accounts 500,000 -
Receivable from affiliate (818,623)
-
Net cash used by investing activities (1,102,811) (415,647)
Cash flows from financing activities:
Proceeds from issuance of notes payable 32,953 25,616
Payment of notes payable (56,406) (187,869)
Proceeds from issuance of convertible subordinated debentures 85,000 -
Payment upon maturity of convertible subordinated debentures (85,000) -
Proceeds from issuance of long-term debt - 88,230
Repayment of long-term debt (118,512) (106,388)
Repayment of capital lease obligations (53,674) (65,866)
Proceeds from issuance of common stock 17,186 2,205,208
----------- -----------
Net cash provided (used) by financing activities (178,453) 1,958,931
----------- -----------
Net increase (decrease) in cash and cash equivalents (553,061) 2,102,520
Cash and cash equivalents at beginning of period 726,562 261,118
----------- -----------
Cash and cash equivalents at end of period $ 173,501 $ 2,363,638
=========== ===========
See accompanying notes to consolidated financial statements.
WASTE RECOVERY, INC.
Notes to Consolidated Financial Statements
June 30, 1996
Note 1: Adjustments
The financial information presented as of any date other than December
31 has been prepared from the Company's books and records without audit.
Financial information as of December 31 has been derived from the audited
financial statements of the Company, but does not include all disclosures
required by generally accepted accounting principles. In the opinion of
management, all adjustments, consisting only of normal recurring adjustments,
necessary for a fair presentation of the financial information for the periods
indicated, have been included. The results of operations for the three months
and six months ended June 30, 1996, are not necessarily indicative of operating
results for the entire year. For further information regarding the Company's
accounting policies, refer to the consolidated financial statements and related
notes included in the Company's Annual Report on Form 10-K for the year ended
December 31, 1995.
Note 2: Note and Other Receivables
On January 30, 1996, the Company advanced Waste Recovery - Illinois
$500,000 for the Illinois partnership's February 1, 1996 debt payment (the
Company owns a 45% interest in this partnership). The loan was approved by the
Executive Committee of the Illinois partnership. The funds advanced were
included in restricted cash at December 31, 1995, and at June 30, 1996 included
in other noncurrent assets as a note receivable. Upon repayment by Waste
Recovery - Illinois, the funds will be restricted as to use and included in
restricted cash. Terms of the note are in the process of being finalized. In
addition to the $500,000 loan, the Company advanced $263,386 to Waste Recovery -
Illinois as of June 30, 1996. This advance is included in other receivables and
is expected to be repaid by year-end.
Note 3: Inventories
The components of inventories are as follows:
June 30, 1996 December 31, 1995
------------- -----------------
Finished Inventory $ 202,339 $ 228,303
Work-In-Process 83,582 12,324
Parts Inventory 432,703 405,024
------------- -----------------
$ 718,624 $ 645,651
============= =================
Note 4: Convertible Subordinated Debentures
As of the original maturity date, March 15, 1996, $40,000 of the
convertible subordinated debentures plus interest of $1,995 were converted at
the rate of $.875 per share into 47,994 shares of common stock. $85,000 plus
interest of $4,238 of the debentures were repurchased by the Company and
subsequently sold to an unaffiliated individual under the exchange terms of the
debenture agreement. The remaining $410,000 in debentures were exchanged for new
debentures which carry an interest rate of 18% and mature on January 31, 1997.
Other terms and conversion privileges are the same as in the original
debentures.
Note 5: Long-term Debt
As of June 30, 1996, the Company was in technical default due to
noncompliance with its current ratio calculation required by the 10.5%
industrial development revenue bond debt covenants. As a result of this
technical default, $1,560,000 of long-term debt on the bonds was reclassified to
current debt. Management of the Company believes that the direction of current
operations combined with actions currently being taken, will cure the default
within the third quarter.
Note 6: Wire Sales
As of June 30, 1996, the Company has completed installation of bead
wire recycling systems in two plants. The first system was installed in February
1996 at the Baytown plant, with the second system installed in early June 1996
at the Atlanta plant. These systems allow the Company to process the bead wire
which was removed from the tires during the TDF process into a marketable
material. For the three months and six months ended June 30, 1996, the Company
had $84,264 and $117,709 in wire sales, respectively.
Note 7: Preferred Stock Dividends
Cumulative preferred stock dividends in arrears were $902,416 at June
30, 1996. Net income or loss is adjusted by the effect of undeclared dividends
on preferred stock of $71,058 and $70,666 for the six months ended June 30, 1996
and 1995, respectively, and by $35,529 and $35,528 for the three months ended
June 30, 1996 and 1995, respectively. The effect was to increase net loss per
common share by $.007, and decrease net income per common share by $.009 for the
six months ended June 30, 1996 and 1995, respectively, and decrease net income
per common share by $.003 and $.004 for the three months ended June 30, 1996 and
1995, respectively. Primary and fully diluted earnings per share are the same in
1996 and 1995.
Note 8: Purchase of Domino Salvage, Tire Division, Inc.
The following unaudited pro forma summary presents the consolidated
results of the Company's operations as if the acquisition of Domino Salvage,
Tire Division, Inc. as of March 21, 1995, had occurred at the beginning of the
period presented. The information does not purport to be indicative of the
results that actually would have been obtained if the operations were combined
during the periods presented and is not intended to be a projection of future
results or trends.
For the six months
ended June 30, 1995
Revenues $ 6,660,000
============
Net income (loss) $ (27,000)
============
Earnings per share $ .00
============
Note 9: The registrant has no material pending legal proceedings.
Other notes have been omitted pursuant to Rule 10-01 (a)(5) of Regulation S-X.
Item 2: Management's Discussion and Analysis of
Financial Condition and Results of Operations
Waste Recovery, Inc., ("the Company") owns and operates plants in Baytown
(Houston), Texas; Atlanta, Georgia; Portland, Oregon; and Conshohocken
(Philadelphia), Pennsylvania, the latter plant being owned by a subsidiary
("Domino") which was purchased on March 21, 1995. Two new tire processing plants
in central and southern Illinois ("the Illinois facilities") began operations in
September 1995. These plants are owned by Waste Recovery - Illinois, a general
partnership ("WR-Illinois") in which the Company owns a 45% interest and is the
managing partner. The Company operates the Illinois facilities in close
coordination with its national system.
Regional services are coordinated from the operating bases mentioned above.
Operations encompass full-service scrap tire disposal and the recycling of tires
into a supplemental fuel form. The Company generates revenues from scrap tire
disposal fees, from the hauling of scrap tires, from the sale of tire-derived
fuel ("TDF"), and most recently, from the sale of bead wire removed from the
tires. At the plants, scrap tires are converted and refined into TDF, a high BTU
supplemental fuel that is sold primarily to major domestic cement and paper
manufacturers and, recently, also sold to electric power companies.
To date, the effects of inflation on the Company's operations have been
negligible.
General Comments
Results for the second quarter of 1996 reflect a marked improvement as the
Company earned net income of $306,436 on revenues of $4,407,331 compared to net
income of $5,314 on revenues of $3,236,657 for the same period in 1995. Revenues
were up as the result of increased TDF sales, a significantly higher tire flow,
and sales of recycled bead wire, which represents a new source of revenue for
the Company in 1996. Tire flow increased at every plant company wide to over
40,800 tons in 1996 from approximately 33,222 tons for the comparable period in
1995. The largest increase occurred at the Baytown facility primarily due to the
fact that the State of Texas' allocation program, which limited the facility's
tire flow to a certain prescribed level last year, is no longer in effect. TDF
sales, while significantly stronger at the Baytown and Atlanta plants, was
tempered by a drop off in sales at the Portland and Philadelphia plants.
The Atlanta facility had a strong increase in TDF sales with the addition of a
new customer and increased consumption by the facility's existing customer base.
With the continued acceptance of TDF as a supplemental fuel by solid-fuel
burning industries in the region, TDF sales are expected to remain consistent
and could continue to strengthen in the future. Tire flow for the Atlanta
facility was flat for the second quarter of 1996 when compared to 1995; however,
1995 flow included tires from the West Virginia abatement project as well as a
separate Atlanta cleanup project, both of which did not affect the results of
the second quarter of 1996. The absence of this tire flow reflects the growth
achieved in Atlanta's recurring tire flow customer base.
The Baytown facility showed strong improvement in TDF sales and disposal fees
primarily as a result of the elimination of Texas' allocation program. The
Company is now allowed to collect as many scrap tires as can be processed and
sold. As the facility entered its first full quarter of wire production, sales
were strong as the response from the scrap steel industry for the Company's wire
product has been very favorable and has allowed inventories to turn over
quickly. The Company maintains its position of being the only processor in the
State of Texas to recycle all scrap tires received under the Texas program.
The Portland facility continues to maintain its strong position in the scrap
tire market in the Northwest. As previously reported, the Company began a tire
pile clean-up project in the State of Washington in April 1996. This project
involves the clean-up of approximately four million passenger tire equivalents
("PTE's") and 22 million pounds of shredded tires, and has an expected duration
of approximately two years if the State has adequate funds available to finish
the project. A wire recycling system like those installed in the Baytown and
Atlanta facilities is currently being installed in the Portland plant with an
expected completion date sometime in September 1996.
The Philadelphia facility (Domino) continues to suffer from a depressed TDF
market in the Northeast as heavy competition has resulted in soft demand and
lower prices. Tire flow, however, was up for the second quarter 1996 with
pricing stabilizing.
In late May, certain legislative changes in the State of Illinois had a
significant impact on WR-Illinois' operations. The repeal of certain legislation
made it unprofitable for some Illinois competitors to collect and process scrap
tires. The impact on WR-Illinois' has been very favorable resulting in a
substantial increase in tire flow. PTE's received by both Illinois plants
increased significantly in the second quarter of 1996. Tire flow for the
Southern Illinois tire processing plant also increased due to two tire pile
cleanup projects done for the State of Kentucky. WR-Illinois TDF sales also
increased significantly in the second quarter of 1996. Although WR-Illinois
experienced very favorable changes in the marketplace, the events came too late
in the second quarter to prevent WR-Illinois from suffering a net loss. The
continued benefit of this improved tire flow, however, should improve the
operating results of the partnership.
Results of Operations
Second Quarter Ended June 30, 1996 Compared
with Second Quarter Ended June 30, 1995
Total revenues of $4,407,331 for the second quarter of 1996 were 36% higher than
the $3,236,657 for the same period in 1995. Revenues increased from disposal
fees, hauling and other revenues due to significantly increased tire flow.
Increased TDF sales also contributed to the increase in revenues, as did wire
sales from wire systems installed in 1996. Elimination of Texas' allocation
program boosted the Baytown plant's tire flow, and an increase in the Portland
facility's tipping fees combined with the start-up of the Washington clean-up
project contributed to increased revenues. TDF sales at the Atlanta plant
increased by 104% for the second quarter of 1996 when compared to 1995.
Operating expenses for the second quarter of 1996 were $2,815,294 or 64% of
revenues, down from $2,318,289 or 72% of revenues for the second quarter of
1995. The decrease in operating expenses is the result of production
efficiencies achieved through the increase in tire flow and an increase in TDF
production. With the increased tire flow, TDF production increased almost 20% in
the second quarter of 1996 when compared to 1995, resulting in the utilization
of excess production capacity thus yielding a lower cost per ton for TDF
produced. Operating costs for Domino were improved for the second quarter of
1996 compared to 1995 primarily from production efficiencies as well as cost
reductions in the hauling operation achieved since the acquisition of Domino at
the end of the first quarter of 1995. Operating expenses were also positively
affected by the higher-margin cleanup project at the Portland plant. Another
contributing factor to the favorable change in second quarter 1996 operating
expense compared to 1995 is the elimination of wire disposal costs at the
Baytown facility.
General and administrative expenses for the second quarter of 1996 were higher
when compared to the same period in 1995 ($728,098 to $527,266), and as a
percent of total revenues increased to 16.5% in 1996 from 16.3% in 1995. General
and administrative expenses increased due to increases in staff, personnel
costs, selling expenses, and other administrative costs resulting from higher
levels of operating activities.
Depreciation and amortization expense increased 7% to $273,838 from $256,016 in
the second quarter of 1996 compared to the same period in 1995 primarily as a
result of the new wire recycling systems installed in the Baytown and Atlanta
plants.
Interest expense increased 12% to $133,713 in the second quarter of 1996
compared to $119,632 in the second quarter 1995 primarily due to the higher
interest rate carried by the new subordinated debentures which were exchanged
for the debentures that matured March 15, 1996.
WR-Illinois, in which the Company has a 45% equity interest, generated a greater
loss in the second quarter of 1996 compared to 1995 as the Illinois plants were
under the final stages of construction and not yet operational as of June 30,
1995.
Results of Operations
Six Months Ended June 30, 1996 Compared
with Six Months Ended June 30, 1995
The Company's total revenues of $7,586,299 for the six months ended June 30,
1996 were 18% higher than the $6,421,369 received by the Company for the same
six-month period in 1995. This increase is the result of an 18% increase in TDF
sales, a 16% increase in disposal fees, hauling and other revenues generated by
increased tire flow, and sales of recycled bead wire product from the newly
installed wire recycling systems. While tire flow was only slightly higher for
the Atlanta plant, the Portland, Baytown, and Domino plants showed greater
improvement for an overall increase in PTE's received of 39% for the first six
months of 1996 compared to the same period in 1995.
Operating expenses for the first half of 1996 were $5,295,826 or 70% of total
revenues compared to $4,628,540 or 72% for 1995. Higher tire flow and increased
production efficiency contributed to the improvement over 1995. General and
administrative expenses increased $375,246 to $1,437,978 for the first half of
1996 from $1,062,732 in the comparable period in 1995, and as percent of total
revenues increased to 19% in the first six months of 1996 from 17% in the
comparable 1995 period. The increase is primarily due to the addition of the
Domino plant which was purchased in March 1995, increased staffing at the plant
and the corporate levels, higher salaries and health insurance costs, and other
administrative costs resulting from increased operating activities. Depreciation
and amortization expense increased 16% due to the acquisition of Domino as well
as capital expenditures for the new wire systems at the Baytown and Atlanta
plants. Depreciation and amortization expense as a percent of total revenues was
unchanged at 7%.
Interest expense for the first six months of 1996 increased 13% to $262,130 or
3% of total revenues from $231,457 or 4% of total revenues due to the addition
of debt in connection with the Domino acquisition, as well as an increase in the
rate carried by the new subordinated debentures that replaced the original
debentures which matured on March 15, 1996.
The Company's equity in the loss of WR-Illinois increased in 1996 compared to
1995 as the partnership was not operational until September 1995. Low tire flow
levels experienced in the initial phases of operations of the Illinois plants
operated by WR-Illinois resulted in a net operating loss.
Financial Condition as of June 30, 1996
The Company's working capital balance at June 30, 1996, was a deficit amount of
$2,355,537. This deficit reflects the current classification of $1,560,000 from
long-term debt of the 10.5% industrial revenue bonds as a result of the
Company's noncompliance with the bond debt covenants, current classification of
its convertible subordinated debentures in accordance with the restructured
terms, and the classification of over $350,000 of the Domino debt in current
liabilities. In February 1996, the Company also restructured its long-term debt
of $1.1 million with a different financial institution, which, while decreasing
the annual interest rate by 1.5 percent, increased the current portion of the
amount due. Accounts payable and accrued liabilities are also higher due to
increased capital expenditures for the wire systems. Although the Company was in
technical default on certain debt covenants, management believes that based upon
the current trend of its operations the Company should be able to correct this
situation within the third quarter.
Management continues to remain sensitive to the risk that the Company will not
have the financial strength to take advantage of the opportunities that are
developing. It is anticipated that with operating results beginning to improve,
the Company will be able to adequately fund its working capital requirements and
capital expenditures for at least the next twelve months. However, the Company
is aware that each facility must remain closely monitored and costs must be
controlled. The Company has gone through a very difficult expansion period;
however, based upon the noted recent improvement in the Company's operating
results, management is confident that future periods will reflect the value that
has been created.
The Company believes that significant capital expenditures for the remainder of
1996 will be limited to completing the installation of the wire system at the
Portland plant which is scheduled for September 1996.
PART II
Other Information
Form 10-Q
Part II
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
10.1 Form of Convertible Debenture Agreement as of March 15, 1996
(b) Reports on Form 8-K
None
Item 27. Financial Data Schedule
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant had duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
WASTE RECOVERY, INC.
DATE: August 13, 1996 /s/THOMAS L. EARNSHAW
----------------------------
By: THOMAS L. EARNSHAW
President and Chief Executive Officer
(Principal Executive Officer)