This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Covanta Holding's CEO Discusses Q2 2012 Results - Earnings Call Transcript

With that, I’ll now turn the call over to our President and CEO, Tony Orlando.

Anthony J. Orlando

Thanks Alan, and good morning everyone. Let’s begin with a quick summary of the quarter.

For those of you using the web deck, please turn to slide 3. Our second quarter results were right in line with expectations. Revenue was $410 million, essentially flat with 2011. Adjusted EBITDA was $125 million, a $2 million increase over last year. Our organic growth initiatives were largely offset by lower debt service pass through billings and softness in the energy market. That’s consistent with the outlook we gave you on the Q1 call.

Free cash flow declined by $27 million to $16 million. Again, this result was consistent with our Q1 discussion. The decline was due to the timing of construction working capital. And finally, adjusted EPS was $0.15, $0.01 increase over last year.

Operationally we performed exceptionally well. Boiler availability, waster throughput and steam production were all very good. In fact, we achieved some of our highest performance levels on all three metrics for the first half of this year. We commenced start-up testing at our Honolulu expansion project. We renewed a number of important client contracts and we’ve made some great headway on both revenue generating and cost saving organic growth initiatives. I will give you some concrete examples of those in a few minutes.

The strong operational performance enables us to reaffirm our guidance despite the weak energy markets and the recent downturn in metal prices. We are intent on growing our adjusted EBITDA even in a down market. Furthermore, the work we’re doing this year will pay off in coming years.

Now let’s turn to the business outlook. We will start with waste on slide 4. A few of the waste markets is essentially unchanged from our last earnings call. We are largely contracted and those contracts generally move up with inflation on an annual basis. This provides a nice base to work from. Tip fees continued to be under some pressure, primarily due to low waste generation. Fortunately, we have a relatively small amount of net spot exposure and we’ve been managing our portfolio very well.

3 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

Chart of I:DJI
DOW 17,598.20 -91.66 -0.52%
S&P 500 2,095.22 -8.62 -0.41%
NASDAQ 5,108.2770 -20.0040 -0.39%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs