EX-99.2 3 p74142exv99w2.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,  
    2007     2006  
Revenue —
                
Gross revenue
   $ 1,894.5     $ 1,861.0  
Less intercompany revenue
     (334.3 )     (336.1 )
 
            
Net Revenue
   $ 1,560.2     $ 1,524.9  
 
            
 
                
Revenue Mix (based on net revenue) —
                
Collection —
                
Residential
   $ 305.3     $ 301.5  
Commercial
     383.7       365.4  
Roll-off
     336.2       342.9  
Recycling
     51.9       49.9  
 
            
Total Collection
     1,077.1       1,059.7  
Disposal —
                
Landfill (net of $194.6 and $196.6 of intercompany)
     221.6       223.2  
Transfer (net of $102.7 and $105.9 of intercompany)
     117.7       111.3  
 
            
Total Disposal
     339.3       334.5  
Recycling – Commodity
     64.9       54.2  
Other
     78.9       76.5  
 
            
Total
   $ 1,560.2     $ 1,524.9  
 
            
 
Internalization Based on Disposal Volumes
     74 %     72 %
 
            
 
Landfill Volumes in Thousands of Tons
     19,542       20,701  
 
            
 
                
Year over Year Internal Growth (excluding commodity) —
                
Average per unit price change
     6.0 %     5.9 %
Volume change
     (3.3 )%     2.1 %
 
            
Total
     2.7 %     8.0 %
 
            
 
                
Year over Year Internal Growth (including commodity)
     3.2 %     7.3 %
 
            

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,  
    2007     2006  
Revenue —
                
Gross revenue
   $ 3,657.9     $ 3,592.7  
Less intercompany revenue
     (641.0 )     (645.0 )
 
            
Net Revenue
   $ 3,016.9     $ 2,947.7  
 
            
 
                
Revenue Mix (based on net revenue) —
                
Collection —
                
Residential
   $ 600.8     $ 597.0  
Commercial
     756.1       721.6  
Roll-off
     645.0       656.9  
Recycling
     101.4       93.7  
 
            
Total Collection
     2,103.3       2,069.2  
Disposal —
                
Landfill (net of $373.0 and $377.7 of intercompany)
     413.5       421.6  
Transfer (net of $197.5 and $204.1 of intercompany)
     218.3       207.8  
 
            
Total Disposal
     631.8       629.4  
Recycling – Commodity
     124.6       103.1  
Other
     157.2       146.0  
 
            
Total
   $ 3,016.9     $ 2,947.7  
 
            
 
Internalization Based on Disposal Volumes
     74 %     73 %
 
            
 
Landfill Volumes in Thousands of Tons
     36,995       39,325  
 
            
 
Year over Year Internal Growth (excluding commodity) —
                
Average per unit price change
     6.0 %     5.7 %
Volume change
     (3.1 )%     2.1 %
 
            
Total
     2.9 %     7.8 %
 
            
 
                
Year over Year Internal Growth (including commodity)
     3.3 %     7.2 %
 
            

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,  
    2007     2006  
Labor and related benefits
   $ 274.0       17.6 %   $ 281.4       18.5 %
Transfer and disposal costs
     116.6       7.5       127.8       8.4  
Maintenance and repairs
     122.8       7.9       124.5       8.2  
Transportation and subcontractor costs
     132.8       8.5       138.0       9.1  
Fuel
     77.9       5.0       82.0       5.4  
Disposal and franchise fees and taxes
     94.6       6.1       92.2       6.0  
Landfill operating costs
     42.2       2.7       38.4       2.5  
Risk management
     37.3       2.4       37.0       2.4  
Costs of goods sold
     18.8       1.2       16.0       1.0  
Other
     55.1       3.4       42.3       2.7  
 
                        
Total operating expenses
   $ 972.1       62.3 %   $ 979.6       64.2 %
 
                        
                                 
    Six Months Ended June 30,  
    2007     2006  
Labor and related benefits
   $ 543.3       18.0 %   $ 560.6       19.0 %
Transfer and disposal costs
     221.2       7.3       239.7       8.1  
Maintenance and repairs
     244.6       8.1       250.3       8.5  
Transportation and subcontractor costs
     258.7       8.6       257.3       8.7  
Fuel
     145.2       4.8       146.4       5.0  
Disposal and franchise fees and taxes
     180.6       6.0       181.7       6.2  
Landfill operating costs
     82.6       2.7       76.4       2.6  
Risk management
     81.2       2.7       78.4       2.7  
Costs of goods sold
     34.9       1.2       25.5       0.9  
Other
     110.8       3.7       94.6       3.1  
 
                        
Total operating expenses
   $ 1,903.1       63.1 %   $ 1,910.9       64.8 %
 
                        
The following tables provide the components of our selling, general and administrative costs and as a percentage of revenues:
                                 
    Three Months Ended June 30,  
    2007     2006  
Salaries
   $ 99.6       6.4 %   $ 89.2       5.8 %
Rent and office costs
     9.7       0.6       10.7       0.7  
Professional fees
     20.1       1.3       15.0       1.0  
Provision for doubtful accounts
     5.2       0.3       2.8       0.2  
Other
     29.9       1.9       29.9       2.0  
 
                        
Total selling, general and administrative expenses
   $ 164.5       10.5 %   $ 147.6       9.7 %
 
                        
                                 
    Six Months Ended June 30,  
    2007     2006  
Salaries
   $ 196.1       6.5 %   $ 175.4       5.9 %
Rent and office costs
     20.4       0.7       21.2       0.7  
Professional fees
     36.5       1.2       29.6       1.0  
Provision for doubtful accounts
     10.9       0.4       7.5       0.3  
Other
     62.6       2.0       58.4       2.0  
 
                        
Total selling, general and administrative expenses
   $ 326.5       10.8 %   $ 292.1       9.9 %
 
                        

3

 

ALLIED WASTE INDUSTRIES, INC.
SUMMARY DATA SHEET
BALANCE SHEET
(amounts in millions, except per share data)
(unaudited)
                 
    June 30,     December 31,  
    2007     2006  
ASSETS
                
Current assets —
                
Cash and cash equivalents
   $ 107.6     $ 94.1  
Accounts receivable, net of allowance of $20.4 and $18.6
     724.9       692.8  
Prepaid and other current assets
     82.1       88.3  
Deferred income taxes
     45.8       172.5  
 
            
Total current assets
     960.4       1,047.7  
Property and equipment, net
     4,510.0       4,341.8  
Goodwill
     8,091.3       8,126.0  
Other assets, net
     301.9       295.5  
 
            
Total assets
   $ 13,863.6     $ 13,811.0  
 
            
 
                
LIABILITIES AND STOCKHOLDERS’ EQUITY
                
Current liabilities —
                
Current portion of long-term debt
   $ 459.4     $ 236.6  
Accounts payable
     489.3       498.5  
Current portion of accrued capping, closure, post-closure and environmental costs
     93.3       95.8  
Accrued interest
     116.5       106.9  
Other accrued liabilities
     476.4       363.9  
Unearned revenue
     242.0       231.0  
 
            
Total current liabilities
     1,876.9       1,532.7  
Long-term debt, less current portion
     6,401.9       6,674.0  
Deferred income taxes
     276.4       357.3  
Accrued capping, closure, post-closure and environmental costs, less current portion
     798.5       769.5  
Other long-term obligations
     777.5       878.6  
Stockholders’ equity —
               
Series D senior mandatory convertible preferred stock, $0.10 par value, 2.8 million shares authorized, 2.4 million shares 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       3.7  
Additional paid-in capital
     2,823.1       2,802.0  
Accumulated other comprehensive loss
     (57.4 )     (57.4 )
Retained earnings
     382.2       269.8  
 
            
Total stockholders’ equity
     3,732.4       3,598.9  
 
            
Total liabilities and stockholders’ equity
   $ 13,863.6     $ 13,811.0  
 
            
 
                
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, 2007     June 30, 2006  
Operating activities —
                
Net income
   $ 91.2     $ 37.6  
Discontinued operations, net of tax
     0.5       (1.1 )
Adjustments to reconcile net income to cash provided by operating activities from continuing operations —
                
Provisions for:
                
Depreciation and amortization
     143.1       146.7  
Stock-based compensation expense
     7.2       3.9  
Doubtful accounts
     5.2       2.8  
Accretion of debt and amortization of debt issuance costs
     5.0       5.4  
Deferred income tax expense
     50.9       33.5  
Gain on sale of fixed assets
     (3.1 )     (1.7 )
Loss from divestitures and asset impairments
     2.4       —  
Write-off of deferred debt issuance costs
     0.8       3.6  
Other non-cash items
     (0.4 )     (11.1 )
Change in operating assets and liabilities, excluding the effects of acquisitions —
                
Accounts receivable, prepaid expenses, inventories and other assets
     (27.9 )     (58.7 )
Accounts payable, accrued liabilities, unearned income and other
     71.1       32.3  
Capping, closure and post-closure accretion
     14.1       12.4  
Capping, closure, post-closure and environmental expenditures
     (10.1 )     (13.5 )
 
            
Cash provided by operating activities from continuing operations
     350.0       192.1  
 
            
 
                
Investing activities —
                
Cost of acquisitions, net of cash acquired
     (19.1 )     —  
Proceeds from divestitures, net of cash divested
     0.3       1.3  
Proceeds from sale of fixed assets
     4.4       3.4  
Capital expenditures, excluding acquisitions
     (144.0 )     (175.0 )
Capitalized interest
     (4.8 )     (4.1 )
Change in deferred acquisition costs, notes receivable and other
     0.3       0.6  
 
            
Cash used for investing activities from continuing operations
     (162.9 )     (173.8 )
 
            
 
                
Financing activities —
                
Proceeds from long-term debt, net of issuance costs
     314.8       874.2  
Payments of long-term debt
     (462.2 )     (892.0 )
Payments of preferred stock dividends
     (9.3 )     (14.7 )
Net change in disbursement account
     25.5       6.8  
Net proceeds from sale of common stock, exercise of stock options and other
     7.1       7.8  
 
            
Cash used for financing activities from continuing operations
     (124.1 )     (17.9 )
 
            
 
                
Cash provided by (used for) discontinued operations
     (5.2 )     3.5  
 
            
 
                
Increase in cash and cash equivalents
     57.8       3.9  
Cash and cash equivalents, beginning of period
     49.8       43.7  
 
            
Cash and cash equivalents, end of period
   $ 107.6     $ 47.6  
 
            

5

 

ALLIED WASTE INDUSTRIES, INC.
SUMMARY DATA SHEET
STATEMENT OF CASH FLOWS
(amounts in millions)
(unaudited)
                 
    For the Six     For the Six  
    Months Ended     Months Ended  
    June 30, 2007     June 30, 2006  
Operating activities —
                
Net income
   $ 131.1     $ 78.8  
Discontinued operations, net of tax
     (5.0 )     (2.4 )
Adjustments to reconcile net income to cash provided by operating activities from continuing operations —
                
Provisions for:
                
Depreciation and amortization
     272.8       287.5  
Stock-based compensation expense
     10.3       7.3  
Doubtful accounts
     10.9       7.5  
Accretion of debt and amortization of debt issuance costs
     10.4       10.9  
Deferred income tax expense
     71.4       62.4  
Gain on sale of fixed assets
     (5.1 )     (2.6 )
Loss from divestitures and asset impairments
     1.5       —  
Write-off of deferred debt issuance costs
     5.4       3.6  
Other non-cash items
     (2.2 )     (13.5 )
Change in operating assets and liabilities, excluding the effects of acquisitions —
                
Accounts receivable, prepaid expenses, inventories and other assets
     (34.8 )     (54.7 )
Accounts payable, accrued liabilities, unearned income and other
     (11.4 )     (26.5 )
Capping, closure and post-closure accretion
     28.1       25.2  
Capping, closure, post-closure and environmental expenditures
     (19.9 )     (23.8 )
 
            
Cash provided by operating activities from continuing operations
     463.5       359.7  
 
            
 
                
Investing activities —
                
Cost of acquisitions, net of cash acquired
     (72.8 )     (10.6 )
Proceeds from divestitures, net of cash divested
     70.8       13.4  
Proceeds from sale of fixed assets
     8.2       7.3  
Capital expenditures, excluding acquisitions
     (367.8 )     (370.7 )
Capitalized interest
     (9.3 )     (8.2 )
Change in deferred acquisition costs, notes receivable and other
     (0.2 )     1.5  
 
            
Cash used for investing activities from continuing operations
     (371.1 )     (367.3 )
 
            
 
                
Financing activities —
                
Proceeds from long-term debt, net of issuance costs
     1,255.9       1,223.1  
Payments of long-term debt
     (1,329.0 )     (1,147.0 )
Payments of preferred stock dividends
     (18.7 )     (29.4 )
Net change in disbursement account
     (0.7 )     (63.3 )
Net proceeds from sale of common stock, exercise of stock options and other
     15.7       8.7  
 
            
Cash used for financing activities from continuing operations
     (76.8 )     (7.9 )
 
            
 
                
Cash provided by (used for) discontinued operations
     (2.1 )     7.0  
 
            
 
                
Increase (decrease) in cash and cash equivalents
     13.5       (8.5 )
Cash and cash equivalents, beginning of period
     94.1       56.1  
 
            
Cash and cash equivalents, end of period
   $ 107.6     $ 47.6  
 
            

6

 

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,  
    2007     2006     2007     2006  
Free Cash Flow:
                                
Cash provided by operating activities
   $ 350.0     $ 192.1     $ 463.5     $ 359.7  
Add: Premium on debt repurchases
     —       37.2       45.4       37.2  
Change in disbursement account
     25.5       6.8       (0.7 )     (63.3 )
Proceeds from sale of fixed assets
     4.4       3.4       8.2       7.3  
Less: Capital expenditures, excluding acquisitions
     (144.0 )     (175.0 )     (367.8 )     (370.7 )
 
                        
Free cash flow
     235.9       64.5       148.6       (29.8 )
 
                                
Market development and other investing activities, net
     (18.5 )     1.9       (2.2 )     4.3  
Cash provided by (used for) discontinued operations
     (5.2 )     3.5       (2.1 )     7.0  
Capitalized interest
     (4.8 )     (4.1 )     (9.3 )     (8.2 )
Debt issuance costs
     (1.1 )     (11.3 )     (20.7 )     (11.3 )
Payments on preferred stock dividends
     (9.3 )     (14.7 )     (18.7 )     (29.4 )
Premium on debt repurchases
     —       (37.2 )     (45.4 )     (37.2 )
Accretion and other
     5.6       6.3       12.6       5.7  
Change in cash
     (57.8 )     (3.9 )     (13.5 )     8.5  
 
                        
(Increase) decrease in debt
   $ 144.8     $ 5.0     $ 49.3     $ (90.4 )
 
                        
 
                                
Debt balance at beginning of period
   $ 7,006.1     $ 7,187.1     $ 6,910.6     $ 7,091.7  
(Increase) decrease in debt
     144.8       5.0       49.3       (90.4 )
 
                        
Debt balance at end of period
   $ 6,861.3     $ 7,182.1     $ 6,861.3     $ 7,182.1  
 
                        
DILUTED 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,  
    2007     2006     2007     2006  
Diluted earnings per share computation:
                                
Income from continuing operations
   $ 91.7     $ 36.5     $ 126.1     $ 76.4  
Add: Interest expense, net of tax, for senior convertible debentures
     1.5       —       2.9       —  
Less: Dividends on preferred stock
     —       (9.4 )     (18.7 )     (24.1 )
 
                        
Income from continuing operations available to common shareholders
   $ 93.2     $ 27.1     $ 110.3     $ 52.3  
 
                        
 
                                
Weighted average common shares outstanding
     368.7       364.1       368.2       347.2  
Dilutive effect of stock, stock options and contingently issuable shares
     74.2       3.2       13.3       2.7  
 
                        
Weighted average common and common equivalent shares outstanding
     442.9       367.3       381.5       349.9  
 
                        
 
                                
Diluted earnings per share from continuing operations
   $ 0.21     $ 0.07     $ 0.29     $ 0.15  
 
                        

7