8-K 1 form8k2ndqtr2002.txt ALLIED WASTE 8K FILING -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported) July 31, 2002 Allied Waste Industries, Inc. (Exact name of registrant as specified in charter) Delaware (State or other jurisdiction of incorporation) 0-19285 88-0228636 (Commission File Number) (IRS Employer Identification No.) 15880 N. Greenway-Hayden Loop, Suite 100 Scottsdale, Arizona 85260 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code (480) 627-2700 Not Applicable (Former name or former address, if changed since last report) -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Item 5. Other Events On July 31, 2002 Allied Waste Industries, Inc. issued a press release announcing its financial results for the second quarter ended June 30, 2002 and updating guidance for the full year 2002. The press release along with unaudited supplemental data is provided herein. 2 Contact: Michael Burnett Vice President, Investor Relations 480-627-2785 FOR IMMEDIATE RELEASE --------------------- ALLIED WASTE REPORTS SECOND QUARTER 2002 RESULTS AND UPDATES GUIDANCE FOR THE FULL YEAR 2002 Scottsdale, AZ - July 31, 2002 - Allied Waste Industries, Inc. (NYSE: AW) today announced financial results for the second quarter ended June 30, 2002 and provided updated guidance for the full year 2002. For the second quarter ended June 30, 2002, EBITDA (earnings before interest, taxes, depreciation and amortization) was $448.0 million on revenues of $1.402 billion, compared to adjusted EBITDA of $513.1 million on revenues of $1.413 billion in the second quarter of 2001. Net income available to common shareholders was $34.0 million, or $0.18 per share in the second quarter of 2002, including an after-tax expense of ($14.6) million, or ($0.07) per share, related to the interest rate swap contracts that the company de-designated at the end of 2001 in accordance with FASB Statement 133. In direct comparison with the consensus earnings estimate of $0.24 per share compiled by First Call, the company reported earnings of $0.25 per share for the second quarter. For the second quarter of 2001, adjusted net income available to common shareholders was $43.9 million, or $0.22 per share. The results for 2001 include goodwill amortization, without which the company's second quarter 2001 earnings would have been $0.44 per share. The adjusted EBITDA, net income and earnings per share amounts for 2001 exclude $7.2 million of pretax acquisition related expenses. During the second quarter 2002, free cash flow was $47.5 million. Total debt was $9.25 billion at June 30, 2002 and the cash balance increased $70.2 million from March 31, 2002 to $160.1 million at June 30, 2002. Free cash flow is defined as EBITDA plus other non-cash items, less cash interest, cash taxes, closure, post-closure and environmental expenditures, capital expenditures (other than for acquisitions) and changes in working capital (excluding expenditures against non-recurring acquisition accruals). For the six months ended June 30, 2002, EBITDA was $852.1 million on revenues of $2.718 billion. Net income available to common shareholders was $66.3 million or $0.34 per share. Free cash flow for the six months ended June 30, 2002 was $83.3 million. "We continue to manage the business effectively and generate positive cash flow as supported by our 32% EBITDA margins in the second quarter," said Tom Van Weelden, Chairman and CEO of Allied Waste. "With no significant debt maturities in 2002 and an undrawn revolver with more than $700 million of capacity at June 30, 2002, we continue to maintain reliable liquidity in the business. We remain confident that we will achieve our goal of reducing debt below $9 billion by year-end 2002. Mr. Van Weelden continued, "In light of these reported results for the first half of the year and our recently updated view of the second half of the year, we expect to report EBITDA for 2002 of approximately $1.75 billion and free cash flow of approximately $300 million." Allied Waste will host a conference call related to the second quarter earnings on Wednesday, July 31st at 5:00 p.m. EDT. The call will be broadcast live over the Internet on the Company's website: www.alliedwaste.com. A playback of the call will be available on the site after the call. Allied Waste has also filed supplemental data on Form 8-K that is accessible on the Company's website or through the SEC EDGAR System. Allied Waste Industries, Inc., a leading waste services company, provides collection, recycling and disposal services to residential, commercial and industrial customers in the United States. As of June 30, 2002, the Company operated 342 collection companies, 169 transfer stations, 167 active landfills and 65 recycling facilities in 39 states. 3 Safe Harbor for Forward-Looking Statements Certain matters discussed in this press release are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements describe the Company's future plans, objectives or goals. These statements include: (a) statements regarding the generation of approximately $300 million of free cash flow in 2002; (b) statements relating to reduction of the Company's debt balance to under $9.0 billion by the end of 2002; and (c) statements regarding EBITDA for 2002 of approximately $1.75 billion. These forward-looking statements involve risks and uncertainties which could cause actual results to differ materially including, without limitation, (1) continuing weakness in the U.S. economy in 2002 may cause a decline in the demand for the Company's services (particularly in the commercial and industrial sectors), a decline in the price of commodities sold by the Company, increased competitive pressure on pricing and generally make it more difficult for the Company to predict economic trends; (2) the Company may be impeded in the successful integration of acquired businesses and its market development efforts; (3) a change in interest rates or a reduction in the Company's cash flow could impair the Company's ability to service and reduce its debt obligations; (4) volatility in interest rates may, among other things, affect earnings due to possible mark to market changes on certain interest rate hedges; (5) divestitures by the Company may not raise funds exceeding financing needed for acquisitions in 2002; and (6) severe weather conditions could impair the Company's operating results. Other factors which could materially affect such forward-looking statements can be found in the Company's periodic reports filed with the Securities and Exchange Commission, including risk factors detailed in Management's Discussion and Analysis in Allied's Form 10-K for the year ended December 31, 2001. Shareholders, potential investors and other readers are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements made herein are only made as of the date of this press release and the Company undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances. 4
ALLIED WASTE INDUSTRIES, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (amounts in thousands, except per share data) (unaudited) For the Three For the Three Months Ended % of Months Ended % of June 30, 2002 Revenue June 30, 2001 Revenue ------------- ----------- ---------------- ---------- Revenue............................ $ 1,401,920 100.0% $ 1,412,865 100.0% Cost of operations................. 834,608 59.5% 799,501 56.6% Selling, general and administrative expenses......................... 119,320 8.5% 100,246 7.1% Depreciation and amortization...... 125,866 9.0% 115,026 8.1% Goodwill amortization (A).......... -- 56,463 4.0% ------------ ----------- -------------- ---------- Operating income before acquisition 322,126 23.0% 341,629 24.2% related and unusual costs........ Acquisition related and unusual -- 7,249 0.5% costs.............................. ------------- ----------- -------------- ---------- Operating income................. 322,126 23.0% 334,380 23.7% Equity in earnings of unconsolidated subsidiaries...... -- (4,967) (0.4)% Interest expense and other (B)..... 230,005 16.4% 213,895 15.1% ------------ ----------- -------------- ---------- Net income before income taxes... 92,121 6.6% 125,452 8.9% Income tax expense................. 38,421 2.8% 71,322 5.0% Minority interest.................. 493 0.0% 972 0.1% ------------- ----------- ------------- ---------- Net income ........................ 53,207 3.8% 53,158 3.8% Preferred dividends................ 19,252 1.4% 18,050 1.3% ------------- ----------- -------------- ---------- Net income to common shareholders..................... $ 33,955 2.4% $ 35,108 2.5% ============= =========== =============== ========== Weighted average common and common equivalent shares..... 193,914 195,670 ============= ================ Income per common share............ $ 0.18 $ 0.18 ============= ================ Adjusted income per common share .. N/A $ 0.22 (C) ============= ================ ------------------------------------------------------------------------------------------------------------- EBITDA............................. $ 447,992 32.0% $ 505,869 35.8% Adjusted EBITDA.................... N/A N/A $ 513,118 (C) 36.3% ------------------------------------------------------------------------------------------------------------- (A) In accordance with SFAS 142, "Goodwill and Other Intangible Assets", amortization of goodwill ceased on January 1, 2002. The Company has completed its evaluation and determined that all goodwill is recoverable under SFAS 142 guidelines as of January 1, 2002. (B) The 2002 interest expense and other includes a $24.3 million loss ($14.6 million, after tax) related to interest rate swap contracts that were de-designated on December 31, 2001, in accordance with SFAS 133 "Accounting for Derivative Instruments and Hedging Activities". The loss consists of a mark to market net loss and amortization of accumulated other comprehensive income related to the de-designated interest rate swap contracts. See detail of interest expense and other on page 7. (C) Adjusted EBITDA and income per common share in 2001 removes the impact of acquisition related expenses of $7.2 million and the related tax effect of these items of $1.6 million.
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ALLIED WASTE INDUSTRIES, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (amounts in thousands, except per share data) (unaudited) For the Six For the Six Months Ended % of Months Ended % of June 30, 2002 Revenue June 30, 2001 Revenue -------------- ---------- ------------- --------- Revenue............................ $ 2,717,595 100.0% $ 2,766,703 100.0% Cost of operations................. 1,624,018 59.8% 1,579,565 57.1% Selling, general and administrative expenses......................... 241,444 8.9% 202,691 7.3% Depreciation and amortization...... 245,524 9.0% 228,635 8.3% Goodwill amortization (A).......... -- 113,027 4.1% --------------- ---------- -------------- --------- Operating income before acquisition related and unusual costs.................... 606,609 22.3% 642,785 23.2% Acquisition related and unusual costs -- 12,747 0.4% Non-cash loss on asset sale........ -- 107,011 3.9% -------------- ---------- -------------- --------- Operating income................. 606,609 22.3% 523,027 18.9% Equity in earnings of unconsolidated subsidiaries..................... -- (14,072) (0.5)% Interest expense and other (B)..... 427,227 15.7% 430,640 15.6% -------------- ---------- -------------- --------- Net income before income taxes... 179,382 6.6% 106,459 3.8% Income tax expense................. 73,942 2.8% 59,580 2.1% Minority interest.................. 1,115 0.0% 2,719 0.1% -------------- ---------- -------------- --------- Net income before extraordinary loss............................. 104,325 3.8% 44,160 1.6% Extraordinary loss, net of income tax benefit .................... -- 9,453 0.3% ------------- ---------- ------------- --------- Net income ........................ 104,325 3.8% 34,707 1.3% Preferred dividends................ 37,992 1.4% 35,620 1.3% ------------- ---------- ------------- ---------- Net income (loss) to common shareholders................... $ 66,333 2.4% $ (913) (0.0)% ============== ========== ============= ========== Weighted average common and common equivalent shares..... 193,846 195,277 ============== ============= Income per common share............ $ 0.34 $ -- ============== ============= Adjusted income per common share .. N/A $ 0.36 (C) ============== ============= --------------------------------------------------------------------------------------------------------------- EBITDA............................. $ 852,133 31.4% $ 864,689 31.3% Adjusted EBITDA.................... N/A N/A $ 984,447 (C) 35.6% --------------------------------------------------------------------------------------------------------------- (A) In accordance with SFAS 142, "Goodwill and Other Intangible Assets", amortization of goodwill ceased on January 1, 2002. The Company has completed its evaluation and determined that all goodwill is recoverable under SFAS 142 guidelines as of January 1, 2002. (B) The 2002 interest expense and other includes a $16.4 million loss ($9.8 million, after tax) related to interest rate swap contracts that were de-designated on December 31, 2001, in accordance with SFAS 133 "Accounting for Derivative Instruments and Hedging Activities". A mark to market net gain is offset by amortization of accumulated other comprehensive income related to the de-designated interest rate swap contracts. See detail of interest expense and other on page 8. (C) Adjusted EBITDA and income per common share in 2001 removes the impact of acquisition related expenses of $12.7 million, non-cash loss on asset sale of $107.0 million and the related tax effect of these items of $58.5 million and an extraordinary loss, net of tax of $9.5 million.
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ALLIED WASTE INDUSTRIES, INC. Summary Data Sheet Statement of operations data (amounts in thousands, except per share data and percentages) (unaudited) For the Three Months Ended June 30, 2002 2001 --------------------- --------------------- Revenue -- Gross revenue....................................... $ 1,711,130 $ 1,712,587 Less intercompany revenue........................... (309,210) (299,722) ------------------- --------------------- Revenue........................................... $ 1,401,920 $ 1,412,865 ==================== ===================== Revenue Mix (based on gross revenue) -- Collection.......................................... 61.7% 61.9% Disposal............................................ 31.9% 32.0% Recycling........................................... 3.9% 3.4% Other............................................... 2.5% 2.7% ------------------ --------------------- Total............................................. 100.0% 100.0% ================== ===================== Internalization Based on Disposal Volumes............. 66% 67% ================== ===================== Landfill Volumes in Tons.............................. 18,496 18,571 ================== ===================== Internal Growth - Year over Year (excluding commodity): Price................................................. (2.3)% 1.5% Volume................................................ 0.4% 0.5% ------------------ --------------------- Total............................................. (1.9)% 2.0% ================== ===================== Average price increases to customers.................. 2.1% 3.5% ================== ===================== Internal Growth Year over Year (including commodity).. (1.8)% (2.4)% ================== ===================== Interest Expense and Other-- Interest expense, gross............................. $ 186,995 $ 217,623 Cash settlement of de-designated interest rate swap contracts (previously recorded in interest expense, gross)............................................. 14,620 -- ------------------ --------------------- 201,615 217,623 Interest income..................................... (1,335) (1,902) Capitalized interest for development projects....... (5,740) (12,459) Accretion of debt and amortization of debt issuance costs............................................. 11,138 10,633 ------------------ --------------------- 205,678 213,895 ------------------ --------------------- Non-cash loss on de-designated interest rate swap contracts (previously recorded in accumulated other comprehensive income in shareholders' equity)..... 15,477 -- Amortization of accumulated other comprehensive income for de-designated interest rate swap contracts.... 8,850 -- ------------------ --------------------- Interest expense and other...................... $ 230,005 $ 213,895 ================= =====================
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ALLIED WASTE INDUSTRIES, INC. Summary Data Sheet Statement of operations data (amounts in thousands, except per share data and percentages) (unaudited) For the Six Months Ended June 30, 2002 2001 ------------------ --------------------- Revenue -- Gross revenue....................................... $ 3,301,259 $ 3,346,571 Less intercompany revenue........................... (583,664) (579,868) ------------------ --------------------- Revenue........................................... $ 2,717,595 $ 2,766,703 ================== ===================== Revenue Mix (based on gross revenue) -- Collection.......................................... 62.9% 62.5% Disposal............................................ 31.1% 30.9% Recycling........................................... 3.5% 3.6% Other............................................... 2.5% 3.0% ------------------ --------------------- Total............................................. 100.0% 100.0% ================== ===================== Internalization Based on Disposal Volumes............. 67% 68% ================== ===================== Landfill Volumes in Tons.............................. 34,820 34,728 ================== ===================== Internal Growth - Year over Year (excluding commodity): Price................................................. (1.5)% 1.6% Volume................................................ (0.4)% 0.2% ------------------ --------------------- Total............................................... (1.9)% 1.8% ================== ===================== Average price increases to customers.................. 1.4% 3.2% ================== ===================== Internal Growth Year over Year (including commodity).. (2.4)% (2.0)% ================== ===================== Interest Expense and Other-- Interest expense, gross............................. $ 374,420 $ 438,648 Cash settlement of de-designated interest rate swap contracts (previously recorded in interest expense, gross).............................................. 29,029 -- ------------------ --------------------- 403,449 438,648 Interest income..................................... (2,459) (3,797) Capitalized interest for development projects....... (12,349) (25,173) Accretion of debt and amortization of debt issuance costs............................................. 22,139 20,962 ------------------ --------------------- 410,780 430,640 ------------------ --------------------- Non-cash gain on de-designated interest rate swap contracts (previously recorded in accumulated other comprehensive income in shareholders' equity)..... (1,253) -- Amortization of accumulated other comprehensive income for de-designated interest rate swap contracts.... 17,700 -- ------------------ --------------------- Interest expense and other...................... $ 427,227 $ 430,640 ================== ======================
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ALLIED WASTE INDUSTRIES, INC. SUMMARY DATA SHEET (amounts in thousands) (unaudited) For the Three For the Six Months Ended Months Ended June 30, 2002 June 30, 2002 -------------------- -------------------- Acquisitions -- Annualized revenue acquired............................. $ 207 $ 10,049 Annualized revenue acquired (after intercompany eliminations).......................................... $ 207 $ 10,049 Divestitures -- Annualized revenue divested............................. $ -- $ (510) Annualized revenue divested (after intercompany eliminations)......................................... $ -- $ (510) Capital Expenditures -- Fixed asset purchases................................... $ 41,921 $ 255,752 Cell development........................................ 58,129 93,926 -------------------- -------------------- Total........................................ $ 100,050 $ 349,678 ==================== ==================== Days sales outstanding.................................... 44 days ====================
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ALLIED WASTE INDUSTRIES, INC. SUMMARY DATA SHEET BALANCE SHEET DATA (amounts in thousands, except per share data) (unaudited) June 30, December 31, 2002 2002 --------------------- -------------------- ASSETS Current assets -- Cash and cash equivalents..................................................... $ 160,109 $ 158,841 Accounts receivable, net of allowance of $28,344 and $31,876.................. 746,477 751,416 Prepaid and other current assets.............................................. 108,404 132,026 Deferred income taxes, net.................................................... 150,363 156,203 --------------------- -------------------- Total current assets........................................................ 1,165,353 1,198,486 Property and equipment, net................................................... 4,137,132 4,010,886 Goodwill, net................................................................. 8,562,301 8,556,877 Other assets, net............................................................. 378,121 580,844 --------------------- -------------------- Total assets................................................................ $ 14,242,907 $ 14,347,093 ===================== ==================== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities -- Current portion of long-term debt............................................. $ 211,152 $ 22,130 Accounts payable.............................................................. 386,847 456,063 Accrued closure, post-closure and environmental costs......................... 127,144 126,885 Accrued interest.............................................................. 188,620 192,872 Other accrued liabilities..................................................... 356,481 402,816 Unearned revenue.............................................................. 242,045 232,769 --------------------- -------------------- Total current liabilities................................................... 1,512,289 1,433,535 Long-term debt, less current portion.......................................... 9,039,394 9,237,503 Deferred income taxes......................................................... 504,502 418,836 Accrued closure, post-closure and environmental costs......................... 874,555 878,006 Other long-term obligations................................................... 426,757 624,390 Commitments and contingencies Series A senior convertible preferred stock, 1,000 shares authorized, issued and outstanding, liquidation preference of $1,207 and $1,169 per share...... 1,207,029 1,169,044 Stockholders' equity -- Common stock.................................................................. 1,966 1,962 Additional paid-in capital.................................................... 1,022,303 1,055,353 Other comprehensive loss...................................................... (63,797) (85,120) Retained deficit.............................................................. (282,091) (386,416) --------------------- -------------------- Total stockholders' equity.................................................. 678,381 585,779 --------------------- -------------------- Total liabilities and stockholders' equity.................................. $ 14,242,907 $ 14,347,093 ===================== ====================
10 ALLIED WASTE INDUSTRIES, INC. SUMMARY LIQUIDITY DATA SHEET (unaudited) Cash provided by operations for the three months ended June 30, 2002 of $132.8 million, is after $20.9 million spent on non-recurring acquisition accruals. During the three months ended June 30, 2002, our cash balance increased by $70.2 million generated from cash from operations of $132.8 million, an increase in debt of $31.4 million and net cash inflow from other investing activities of $6.1 million after funding capital expenditures of $100.1 million. At June 30, 2002, the current portion of our outstanding debt was $211.2 million, of which $27.0 million is anticipated to be repaid during the remainder of 2002.
------------------------ At June 30, 2002 ------------------------ (in millions, except ratios) Revolver Availability: Capacity Commitment............................. $ 1,291.0 Less: Borrowings............................... -- Less: Letters of Credit outstanding............. 590.0 ---------------------- Total Availability.............................. $ 701.0 ====================== Credit Facility Covenants: Debt / EBITDA.............................. 5.16x Covenant Maximum........................... 5.75x EBITDA in excess of covenant requirement... $ 157.0 EBITDA / Total Interest.................... 2.17x Covenant Minimum........................... 2.00x EBITDA in excess of covenant requirement... $ 131.1
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ALLIED WASTE INDUSTRIES, INC. SUMMARY DATA SHEET STATEMENT OF CASH FLOWS DATA (amounts in thousands) (unaudited) Three Months Ended June 30, 2002 ---------------------- Operating activities -- Net income.......................................................................... $ 53,207 Adjustments to reconcile net income to cash provided by operating activities -- Provisions for: Depreciation and amortization..................................................... 125,866 Doubtful accounts................................................................. 4,008 Accretion of debt and amortization of debt issuance costs......................... 11,138 Deferred income taxes............................................................. 29,218 Gain on sale of assets............................................................ (1,822) Non-cash gain on de-designated interest rate swap contracts....................... 15,477 Amortization of accumulated other comprehensive income for de-designated interest rate swap contracts.............................................................. 8,850 Change in operating assets and liabilities, excluding the effects of purchase acquisitions -- Accounts receivable, prepaid expenses, inventories and other...................... (44,641) Accounts payable, accrued liabilities, unearned income and other.................. (43,925) Expenditures against non-recurring acquisition accruals........................... (20,881) Closure and post-closure provision.................................................. 18,148 Closure and post-closure expenditures............................................... (13,457) Environmental expenditures.......................................................... (8,363) --------------------- Cash provided by operating activities................................................. 132,823 Investing activities -- Cost of acquisitions, net of cash acquired........................................ (95) Capital expenditures, excluding acquisitions...................................... (100,050) Capitalized interest.............................................................. (5,740) Proceeds from sale of fixed assets................................................ 8,811 Change in deferred acquisition costs, notes receivable, and other................. 4,195 --------------------- Cash used for investing activities.................................................... (92,879) --------------------- Financing activities -- Net proceeds from exercise of stock options....................................... 1,378 Proceeds from long-term debt, net of issuance costs............................... 167,823 Payments of long-term debt........................................................ (138,961) --------------------- Cash provided by financing activities................................................. 30,240 --------------------- Increase in cash and cash equivalents................................................. 70,184 Cash and cash equivalents, beginning of period........................................ 89,925 --------------------- Cash and cash equivalents, end of period.............................................. $ 160,109 =====================
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ALLIED WASTE INDUSTRIES, INC. SUMMARY DATA SHEET (amounts in thousands, except percentages) (unaudited) For the Three For the Six Months Ended Months Ended June 30, 2002 June 30, 2002 ------------------- ----------------- Free Cash Flow: EBITDA......................................................... $ 447,992 $ 852,133 Other non-cash items: Closure and post-closure provision.......................... 18,148 35,332 Doubtful accounts........................................... 4,008 10,221 Gain on sale of assets...................................... (1,822) (3,623) Less: Cash interest.................................................. (240,663) (407,093) Cash taxes..................................................... (19,639) (22,135) Closure, post-closure and environmental expenditures........... (21,820) (33,999) Capital expenditures, excluding acquisitions................... (100,050) (349,678) Changes in working capital..................................... (88,566) (10,508) Remove change in accrued interest and accrued taxes from working capital............................................. 49,913 12,628 ---------------- ---------------- Free cash flow ................................................ 47,501 83,278 Expenditures against non-recurring acquisition accruals..... (20,881) (46,948) Market development and other investing activities, net...... 12,911 (20,644) Increase in cash............................................ (70,184) (1,268) Accretion and other......................................... (777) (5,331) ---------------- ---------------- Change in debt.............................................. $ (31,430) $ 9,087 ================ ================ Debt balance at beginning of period............................ $ 9,219,116 $ 9,259,633 Change in debt................................................. 31,430 (9,087) ---------------- ---------------- Debt balance at end of period.................................. $ 9,250,546 $ 9,250,546 ================ ================ At June 30, 2002 ---------------- Capital Structure: Long-term debt (including current portion)........................ $ 9,250,546 Equity (including series A senior convertible preferred stock).... 1,885,410 ---------------- Debt to total capitalization...................................... 83.1% ================
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ALLIED WASTE INDUSTRIES, INC. SUMMARY LIQUIDITY DATA SHEET (amounts in millions) (unaudited) Debt Maturity Schedule as of June 30, 2002: Debt 2002 2003 2004 2005 2006 2007 Thereafter Total ---------------------------------- ---- ---- ---- ---- ---- ---- ---------- ------- Revolving Credit Facility..........$ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- Tranche A term loan................ -- 111.7 450.0 525.0 -- -- -- 1,086.7 Tranche B term loan................ -- -- -- -- 810.9 -- -- 810.9 Tranche C term loan................ -- -- -- -- -- 973.1 -- 973.1 6.10% BFI Senior notes............. -- 156.7 -- -- -- -- -- 156.7 7.375% Senior notes................ -- -- 225.0 -- -- -- -- 225.0 7.875% BFI Senior notes............ -- -- -- 69.5 -- -- -- 69.5 7.625% Senior notes................ -- -- -- -- 600.0 -- -- 600.0 8.785% Senior notes due 2008....... -- -- -- -- -- -- 600.0 600.0 8.50% Senior notes due 2008........ -- -- -- -- -- -- 750.0 750.0 6.375% BFI Senior notes due 2008......................... -- -- -- -- -- -- 161.2 161.2 7.875% Senior notes due 2009....... -- -- -- -- -- -- 875.0 875.0 10.00% Senior Sub Notes due 2009......................... -- -- -- -- -- -- 2,000.0 2,000.0 9.25% BFI debentures due 2021...... -- -- -- -- -- -- 99.5 99.5 7.40% BFI debentures due 2035...... -- -- -- -- -- -- 360.0 360.0 Other Debt......................... 27.0 45.5 43.4 53.8 114.5 -- 299.5 583.7 ---------- --------- --------- ---------- ----------- --------- ----------- ---------- Total principal due................$ 27.0 $ 313.9 $ 718.4 $ 648.3 $ 1,525.4 $ 973.1 $ 5,145.2 $ 9,351.3 Discount, net...................... (100.8) --------- Total debt balance ............... $ 9,250.5 ========= Note 1 Free cash flow available to repay debt in excess of the current year's maturities will be ratably applied to future maturities of the Credit Facility. Note 2 Consistent with Allied's "Financing Plan" as disclosed in the 2001 Form 10-K, we anticipate refinancing the Credit Facility which consists of the Revolving Credit Facility, Tranche A term loan, Tranche B term loan and Tranche C term loan by late 2003 or early 2004.
14 SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant, Allied Waste Industries, Inc., has caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. ALLIED WASTE INDUSTRIES, INC. By: /s/ THOMAS W. RYAN ------------------------------------------------------ Thomas W. Ryan Executive Vice President & Chief Financial Officer Date: July 31, 2002 15 SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant, Allied Waste Industries, Inc., has caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. ALLIED WASTE INDUSTRIES, INC. By: ------------------------------------------------------ Thomas W. Ryan Executive Vice President & Chief Financial Officer Date: July 31, 2002 16