Heckmann Corporation (NYSE: HEK) today announced that its shareholders have approved all proposals at its Special Meeting of Stockholders, including the issuance of shares of its common stock in connection with the previously announced merger with Power Fuels. The Power Fuels proposal was supported by over 95% of Heckmann shareholders voting at a special shareholder meeting held this morning in Scottsdale, Arizona.
“The Power Fuels merger significantly enhances our Company and gives us a leading environmental position in the Bakken Shale area, an oil basin in North Dakota,” commented Mr. Richard J. Heckmann, Chairman and Chief Executive Officer of Heckmann Corporation. “Our customers are telling us loud and clear what they want from us – a national, multi-basin, professional environmental services company that can transport, treat, recycle and dispose of their waste products with a one-stop, full cycle solution. By merging with Power Fuels, we have an operating presence and transportation and logistics network in every significant unconventional basin. We will have immediate size and scale, and over 70% of our shale-related revenues of our combined businesses will be derived from oil and liquids exploration, which will mitigate the impact of low natural gas prices on our business.”
Heckmann also announced the following financial results for the third quarter ended September 30, 2012. 2 The numbers below do not include the Power Fuels results. A presentation reviewing the quarter's results has been posted to the Company's web site at www.heckmanncorp.com.
- Revenues were $93.1 million and increased sequentially from the second quarter of 2012, with increased revenue in both the Fluids Management Division (formerly Heckmann Water Resources, or HWR) and the Recycling Division (formerly Heckmann Environmental Services, or HES).
- Adjusted EBITDA 3 was $17.3 million – adjustments relate only to stock-based compensation, transaction costs and a loss on the disposal of assets, and did not consider any operating adjustments as had been recorded in past quarters. GAAP EBITDA also increased sequentially.
- Cash balance increased by $6.5 million during the quarter to $11.7 million at quarter end, more than doubling.
- Capital expenditures excluding acquisitions during the third quarter were $7.0 million – net cash capital expenditures (after asset sales) were $1.9 million.
- During the quarter, the Company completed the acquisition of a majority interest in Appalachian Water Services, LLC (AWS), a wastewater treatment and recycling facility in the Marcellus Shale area, for approximately 3.3 million shares of Heckmann common stock.
“In the third quarter, we continued to improve our business despite a challenging operating environment,” said Mr. Heckmann. “We increased our revenue in both our Fluids Management and Recycling divisions while spending minimal capital and more than doubling our cash balance.