EX-99.2 3 p72676exv99w2.htm EX-99.2 exv99w2
 

EXHIBIT 99.2
ALLIED WASTE INDUSTRIES, INC.
SUMMARY DATA SHEET
STATEMENT OF OPERATIONS DATA
(amounts in millions, except percentages and tons data)
(unaudited)
                 
    For the Three Months Ended June 30,  
    2006     2005  
Revenue —
                
Gross revenue
   $ 1,876.7     $ 1,783.5  
Less intercompany revenue
     (336.1 )     (334.9 )
 
            
Net Revenue
   $ 1,540.6     $ 1,448.6  
 
            
 
                
Revenue Mix (based on net revenue) (A) —
                
Collection —
                
Residential
   $ 301.8     $ 300.2  
Commercial
     373.4       345.6  
Roll-off
     345.9       317.8  
Recycling
     52.9       50.8  
 
            
Total Collection
     1,074.0       1,014.4  
Disposal —
                
Landfill (net of $196.6 and $201.2 of intercompany)
     223.2       209.1  
Transfer (net of $105.9 and $110.6 of intercompany)
     111.3       109.7  
 
            
Total Disposal
     334.5       318.8  
Recycling – Commodity
     55.4       59.5  
Other
     76.7       55.9  
 
            
Total
   $ 1,540.6     $ 1,448.6  
 
            
 
                
Internalization Based on Disposal Volumes
     72 %     72 %
 
            
 
                
Landfill Volumes in Thousands of Tons
     20,701       20,832  
 
            
 
                
Year over Year Internal Growth (excluding commodity) —
                
Average per unit price change
     6.0 %     1.7 %
Volume change
     1.8 %     1.5 %
 
            
Total
     7.8 %     3.2 %
 
            
 
            
Year over Year Internal Growth (including commodity)
     7.1 %     3.4 %
 
            
 
(A)   The revenue mix for 2005 reflects the reclassification of transportation revenue out of collection, disposal and recycling-commodity revenue to other revenue.

1

 

ALLIED WASTE INDUSTRIES, INC.
SUMMARY DATA SHEET
STATEMENT OF OPERATIONS DATA
(amounts in millions, except percentages and tons data)
(unaudited)
                 
    For the Six Months Ended June 30,  
    2006     2005  
Revenue —
                
Gross revenue
   $ 3,624.3     $ 3,427.2  
Less intercompany revenue
     (645.0 )     (637.3 )
 
            
Net Revenue
   $ 2,979.3     $ 2,789.9  
 
            
 
                
Revenue Mix (based on net revenue) (A) —
                
Collection —
                
Residential
   $ 597.7     $ 589.4  
Commercial
     737.6       682.2  
Roll-off
     662.8       601.2  
Recycling
     99.8       99.6  
 
            
Total Collection
     2,097.9       1,972.4  
Disposal —
                
Landfill (net of $377.7 and $385.9 of intercompany)
     421.6       389.3  
Transfer (net of $204.1 and $208.6 of intercompany)
     207.8       206.7  
 
            
Total Disposal
     629.4       596.0  
Recycling – Commodity
     105.8       116.2  
Other
     146.2       105.3  
 
            
Total
   $ 2,979.3     $ 2,789.9  
 
            
 
                
Internalization Based on Disposal Volumes
     72 %     73 %
 
            
 
                
Landfill Volumes in Thousands of Tons
     39,325       39,265  
 
            
 
                
Year over Year Internal Growth (excluding commodity) —
                
Average per unit price change
     5.9 %     1.2 %
Volume change
     1.9 %     1.6 %
 
            
Total
     7.8 %     2.8 %
 
            
 
                
Year over Year Internal Growth (including commodity)
     7.1 %     3.0 %
 
            
 
(A)   The revenue mix for 2005 reflects the reclassification of transportation revenue out of collection, disposal and recycling-commodity revenue to other revenue.

2

 

ALLIED WASTE INDUSTRIES, INC.
SUMMARY DATA SHEET
STATEMENT OF OPERATIONS DATA
(amounts in millions, except percentages)
(unaudited)
The following tables provide the components of our operating costs and as a percentage of revenues:
                                 
    Three Months Ended June 30,  
    2006     2005  
Labor and related benefits
   $ 284.5       18.5 %   $ 279.2       19.3 %
Transfer and disposal costs
     132.4       8.6       131.0       9.0  
Maintenance and repairs
     123.9       8.0       123.5       8.5  
Transportation and subcontractor costs
     138.5       9.0       111.8       7.7  
Costs of good sold
     16.2       1.0       11.7       0.8  
Fuel
     82.6       5.4       59.8       4.1  
Disposal and franchise fees and taxes
     92.3       6.0       90.3       6.2  
Landfill operating costs
     38.4       2.5       37.6       2.6  
Risk management
     37.7       2.5       49.0       3.4  
Other
     45.4       2.9       48.8       3.5  
 
                        
Total operating expenses
   $ 991.9       64.4 %   $ 942.7       65.1 %
 
                        
                                 
    Six Months Ended June 30,  
    2006     2005  
Labor and related benefits
   $ 566.9       19.0 %   $ 549.2       19.7 %
Transfer and disposal costs
     248.7       8.3       243.4       8.7  
Maintenance and repairs
     249.2       8.4       239.3       8.6  
Transportation and subcontractor costs
     258.3       8.7       211.1       7.6  
Costs of good sold
     25.9       0.9       23.6       0.8  
Fuel
     147.5       4.9       106.9       3.8  
Disposal and franchise fees and taxes
     181.8       6.1       171.6       6.1  
Landfill operating costs
     76.4       2.6       75.0       2.7  
Risk management
     79.9       2.7       88.9       3.2  
Other
     100.6       3.3       108.6       3.9  
 
                        
Total operating expenses
   $ 1,935.2       64.9 %   $ 1,817.6       65.1 %
 
                        
The following tables provide the components of our selling, general and administrative costs and as a percentage of revenues:
                                 
    Three Months Ended June 30,  
    2006     2005  
Salaries
   $ 89.7       5.8 %   $ 78.9       5.5 %
Rent and office costs
     10.8       0.7       9.8       0.7  
Professional fees
     15.2       1.0       12.6       0.9  
Provision for doubtful accounts
     2.8       0.2       5.5       0.4  
Other
     29.9       1.9       10.2       0.6  
 
                        
Total selling, general and administrative expenses
   $ 148.4       9.6 %   $ 117.0       8.1 %
 
                        
                                 
    Six Months Ended June 30,  
    2006     2005  
Salaries
   $ 176.6       5.9 %   $ 161.4       5.8 %
Rent and office costs
     21.3       0.7       20.0       0.7  
Professional fees
     29.8       1.0       25.0       0.9  
Provision for doubtful accounts
     7.5       0.3       6.3       0.2  
Other
     58.6       2.0       34.2       1.3  
 
                        
Total selling, general and administrative expenses
   $ 293.8       9.9 %   $ 246.9       8.9 %
 
                        

3

 

ALLIED WASTE INDUSTRIES, INC.
SUMMARY DATA SHEET
BALANCE SHEET
(amounts in millions, except per share data)
(unaudited)
                 
    June 30,     December 31,  
    2006     2005  
ASSETS
                
Current assets —
                
Cash and cash equivalents
   $ 47.6     $ 56.1  
Accounts receivable, net of allowance of $17.8 and $17.8
     728.0       690.5  
Prepaid and other current assets
     90.7       80.5  
Deferred income taxes
     128.6       93.3  
 
            
Total current assets
     994.9       920.4  
Property and equipment, net
     4,393.7       4,273.5  
Goodwill
     8,179.8       8,184.2  
Other assets, net
     242.5       247.5  
 
            
Total assets
   $ 13,810.9     $ 13,625.6  
 
            
 
                
LIABILITIES AND STOCKHOLDERS’ EQUITY
                
Current liabilities —
                
Current portion of long-term debt
   $ 223.0     $ 238.5  
Accounts payable
     481.1       564.8  
Current portion of accrued capping, closure, post-closure and environmental costs
     89.7       95.8  
Accrued interest
     117.7       116.5  
Other accrued liabilities
     343.7       330.5  
Unearned revenue
     241.1       229.4  
 
            
Total current liabilities
     1,496.3       1,575.5  
Long-term debt, less current portion
     6,959.1       6,853.2  
Deferred income taxes
     395.1       305.5  
Accrued capping, closure, post-closure and environmental costs, less current portion
     809.0       796.8  
Other long-term obligations
     643.1       655.2  
Stockholders’ equity —
                
Series C senior mandatory convertible preferred stock, $0.10 par value, 6.9 million shares authorized, issued and outstanding, liquidation preference of $50.00 per share, net of $11.9 million of issuance costs
     —       333.1  
Series D senior mandatory convertible preferred stock, $0.10 par value, 2.4 million shares authorized, issued and outstanding, liquidation preference of $250.00 per share, net of $19.2 million of issuance costs
     580.8       580.8  
Common stock
     3.7       3.3  
Additional paid-in capital
     2,787.6       2,440.7  
Accumulated other comprehensive loss
     (70.3 )     (70.3 )
Retained earnings
     206.5       151.8  
 
            
Total stockholders’ equity
     3,508.3       3,439.4  
 
            
Total liabilities and stockholders’ equity
   $ 13,810.9     $ 13,625.6  
 
            
 
                
Days sales outstanding
   41 days   43 days
 
            

4

 

ALLIED WASTE INDUSTRIES, INC.
SUMMARY DATA SHEET
STATEMENT OF CASH FLOWS
(amounts in millions)
(unaudited)
                 
    For the Three     For the Three  
    Months Ended     Months Ended  
    June 30, 2006     June 30, 2005  
Operating activities —
                
Net income
   $ 37.6     $ 54.0  
Discontinued operations, net of tax
     —       (1.0 )
Adjustments to reconcile net income to cash provided by operating activities —
                
Provisions for:
                
Depreciation and amortization
     147.5       141.0  
Stock-based compensation expense
     3.9       1.4  
Doubtful accounts
     2.8       5.6  
Accretion of debt and amortization of debt issuance costs
     5.4       5.7  
Deferred income taxes
     34.1       62.9  
Gain on sale of fixed assets
     (1.7 )     (1.0 )
Write-off of deferred debt issuance costs
     3.6       0.1  
Non-cash reduction in acquisition and environmental accruals
     (11.1 )     (16.9 )
Change in operating assets and liabilities, excluding the effects of purchase acquisitions —
                
Accounts receivable, prepaid expenses, inventories and other assets
     (58.3 )     (67.9 )
Accounts payable, accrued liabilities, unearned income and other
     33.3       52.1  
Capping, closure and post-closure accretion
     12.4       12.6  
Capping, closure, post-closure and environmental expenditures
     (13.5 )     (18.5 )
 
            
Cash provided by operating activities
     196.0       230.1  
 
            
 
                
Investing activities —
                
Cost of acquisitions, net of cash acquired
     —       (0.8 )
Proceeds from divestitures, net of cash divested
     1.3       3.1  
Proceeds from sale of fixed assets
     3.4       3.9  
Capital expenditures, excluding acquisitions
     (175.4 )     (198.0 )
Capitalized interest
     (4.1 )     (3.7 )
Change in deferred acquisition costs, notes receivable and other
     0.6       0.5  
 
            
Cash used for investing activities
     (174.2 )     (195.0 )
 
            
 
                
Financing activities —
                
Proceeds from long-term debt, net of issuance costs
     874.2       283.4  
Payments of long-term debt
     (892.0 )     (418.8 )
Payments of preferred stock dividends
     (14.7 )     (13.9 )
Net change in disbursement account
     6.8       0.6  
Net proceeds from exercise of stock options and other
     7.8       0.7  
 
            
Cash used for financing activities
     (17.9 )     (148.0 )
 
            
 
                
Cash provided by discontinued operations
     —       1.4  
 
            
 
                
Increase (decrease) in cash and cash equivalents
     3.9       (111.5 )
Cash and cash equivalents, beginning of period
     43.7       181.5  
 
            
Cash and cash equivalents, end of period
   $ 47.6     $ 70.0  
 
            

5

 

ALLIED WASTE INDUSTRIES INC.
SUMMARY DATA SHEET
FREE CASH FLOWS DATA
(amounts in millions)
(unaudited)
                                 
    For the Three Months     For the Six Months  
    Ended June 30,     Ended June 30,  
    2006     2005     2006     2005  
Free Cash Flow:
                                
Cash provided by operating activities
   $ 196.0     $ 230.1     $ 367.8     $ 317.5  
Add: Premium on debt repurchases
     37.2       —       37.2       49.5  
Change in disbursement account
     6.8       0.6       (63.3 )     (94.4 )
Proceeds from sale of fixed assets
     3.4       3.9       7.3       7.2  
Less: Capital expenditures, excluding acquisitions
     (175.4 )     (198.0 )     (371.8 )     (283.5 )
 
                        
Free cash flow
     68.0       36.6       (22.8 )     (3.7 )
 
                                
Market development and other investing activities, net
     1.9       2.8       4.3       2.7  
Cash provided by discontinued operations
     —       1.4       —       0.7  
Capitalized interest
     (4.1 )     (3.7 )     (8.2 )     (7.1 )
Debt issuance costs
     (11.3 )     —       (11.3 )     (23.4 )
Payments on preferred stock dividends
     (14.7 )     (13.9 )     (29.4 )     (19.3 )
Premium on debt repurchases
     (37.2 )     —       (37.2 )     (49.5 )
Proceeds from issuance of equity, net of issuance costs
     —       0.6       —       676.3  
Accretion and other
     6.3       (1.2 )     5.7       (1.6 )
Change in cash
     (3.9 )     111.5       8.5       (2.0 )
 
                        
Decrease (increase) in debt
   $ 5.0     $ 134.1     $ (90.4 )   $ 573.1  
 
                        
 
                                
Debt balance at beginning of period
   $ 7,187.1     $ 7,318.0     $ 7,091.7     $ 7,757.0  
Decrease (increase) in debt
     5.0       134.1       (90.4 )     573.1  
 
                        
Debt balance at end of period
   $ 7,182.1     $ 7,183.9     $ 7,182.1     $ 7,183.9  
 
                        
EARNINGS PER SHARE COMPUTATION
(amounts in millions, except per share data)
(unaudited)
                                 
    For the Three Months     For the Six Months  
    Ended June 30,     Ended June 30,  
    2006     2005     2006     2005  
Diluted earnings per share computation:
                                
Income from continuing operations
   $ 37.6     $ 53.0     $ 78.8     $ 77.7  
Less: Dividends on preferred stock
     (9.4 )     (14.7 )     (24.1 )     (22.4 )
 
                        
Income from continuing operations available to common shareholders
   $ 28.2     $ 38.3     $ 54.7     $ 55.3  
 
                        
 
                                
Weighted average common shares outstanding
     364.1       329.1       347.2       324.2  
Dilutive effect of stock, stock options and contingently issuable shares
     3.2       3.1       2.7       3.4  
 
                        
Weighted average common and common equivalent shares outstanding
     367.3       332.2       349.9       327.6  
 
                        
 
                                
Diluted earnings per share from continuing operations
   $ 0.08     $ 0.12     $ 0.16     $ 0.17  
 
                        

6