Progressive waste solutions ltd. Announces strong results for the three and nine months ended september 30, 2011
Toronto, Ontario -- Progressive Waste Solutions Ltd. (formerly IESI-BFC Ltd.) (the 'Company') (TSX: BIN)(NYSE: BIN) reported financial results for the three and nine months ended September 30, 2011.
(All amounts are in United States ('U.S.') dollars, unless otherwise stated)
Reported revenues increased $54.3 million or 12.4% from $436.3 million in the third quarter of 2010 to $490.5 million in the third quarter of 2011. Organic gross revenue, which includes intercompany revenues, grew 4.3% on a consolidated basis and is comprised of total price and volume growth of 3.3% and 1.0%, respectively. Total price and volume improvements in Canada were 4.6% and 1.2%, respectively. Total price improved 2.4% in the U.S. and volumes increased 0.8%.
Revenue growth translated into adjusted EBITDA(A) and operating income improvements as well. Adjusted EBITDA(A) was $141.0 million, or 11.1% higher, in the third quarter of 2011 versus $126.9 million in the same quarter a year ago. Our third quarter adjusted EBITDA(A) margin was 28.7% compared to 29.1% in the third quarter of 2010. Excluding the incremental increase in fuel surcharges from 2011 reportable revenues, our third quarter adjusted EBITDA(A) margin was 29.1% for 2011. Adjusted operating income(A) was $72.6 million, or 13.5% higher in the quarter compared to $64.0 million in the same period last year.
We also generated higher adjusted net income(A) quarter over quarter. Adjusted net income(A) for the third quarter of 2011 was $35.1 million, or $0.29 per weighted average diluted share ('diluted share'), compared to $32.5 million, or $0.27 per diluted share in the comparative period.
Share repurchases in the quarter totalled $15.6 million while dividends paid to shareholders totalled $15.4 million. The combination of share repurchases and dividends paid represents a $31.0 million return to shareholders versus $11.2 million a year ago. On a reportable basis, net income was $40.3 million in the quarter, or $0.33 per diluted share, compared to $23.9 million or $0.20 per diluted share in the same period last year.
'We achieved solid year-over-year growth in the third quarter, with total reported revenues up 12.4% and adjusted EBITDA(A) increasing 11.1%, driven by organic improvement and contributions from acquisitions,' said Keith Carrigan, Vice Chairman and Chief Executive Officer of Progressive Waste Solutions Ltd. 'As a result of our market-by-market price, volume, and productivity strategies, gross organic revenues grew 5.8% in Canada and 3.2% in the U.S. We saw stability in our U.S. south segment and strength in our Canadian operations, where economic conditions have remained relatively resilient in certain markets we serve. However, we did not overcome the impact of economic softness that is occurring in pockets of the U.S. northeast, which resulted in lower pricing in this segment's collection operations relative to our expectations.'
Mr. Carrigan continued, 'For the balance of 2011, we expect to perform in line with our plans for our Canadian and U.S. south segments, but anticipate continued weakness in the U.S. northeast. As a result, we are projecting that adjusted EBITDA(A) for 2011, assuming parity between the Canadian and U.S. dollar in the last quarter of the year, will be between $537 and $542 million. Further, with higher capital spending related to 'tuck-in' acquisitions completed in the year, we expect 2011 free cash flow(B) to be between $257 and $262 million. Our ability to generate cash remains very strong, and with free cash flow(B) margins of 14.3% for the year-to-date period ended September 30 we will continue to create shareholder value through a combination of share repurchases, dividends and investments in future growth.'
For the nine months ended September 30, 2011, revenue was $1,382.9 million, compared to revenues of $999.9 million a year ago. Adjusted operating income was $204.9 million compared with $147.2 million in the same period in 2010. Adjusted EBITDA(A) for the year-to-date period was $400.7 million compared to $292.2 million in 2010. Our year-to-date adjusted EBITDA(A) margin was 29.0% for 2011 compared to 29.2%, in the same period last year. Excluding the incremental increase in fuel surcharges from 2011 reportable revenues, our year-to-date adjusted EBITDA(A) margin would have been 29.5% for 2011.
For the nine months ended September 30, 2011, adjusted net income was $97.0 million, or $0.80 per weighted average diluted share, compared with $75.2 million or $0.72 per share last year. On a reportable basis, net income was $100.1 million, or $0.83 per diluted share, compared to $60.5 million or $0.59 per diluted share in the same year-to-date period ended last year.
Year-to-date share repurchases and dividends were $39.1 and $46.4 million, respectively, and combined represent a total return to shareholders of $85.5 million for the nine months ended September 30, 2011 versus $33.8 million last year.