Scottsdale-based Allied Waste Industries, the nation’s second-largest waste hauler, reported a 3.4 percent yearover-year increase in secondquarter revenue, while its overall debt now stands at just under $7.2 billion.
The company refinanced its heavy debtload — accumulated mostly through acquiring former rival Browning Ferris Industries — during the first quarter that ended March 31. During that quarter, its debt dropped by $134.1 million, and for the first six months of the year, it has decreased by $573.1 million.
Allied Waste’s debt to total capitalization ratio now stands at 68.3 percent.
"On the refinancing side of things, the refinancing and balance sheet management that Don Slager (president and chief operating officer) and his team have achieved will provide a backdrop where, even with our current level of leverage, we shouldn’t have any concerns about debt maturities, available liquidity, financial covenance or refinancing needs over the next few years," said John Zillmer, Allied Waste’s new chairman and CEO.
For second quarter 2005, the company reported an increase in revenue to $1.44 billion, compared with $1.40 billion for the second quarter of 2004. It reported revenue of $1.3 billion for the first quarter of this year. Net income for the second quarter totaled $54 million, compared with a $15.2 million loss for the same quarter last year. Net income totaled $24.7 million for the first quarter of this year.
"For the second consecutive quarter, revenue increased in each line of business: Landfill, transfer and collection," Slager said. "Overall revenue increased 3.4 percent driven by the highest internal growth rate since 2000, almost exclusively through same-store internal growth driven by both price and volume increases."
For the first six months of 2005, revenue totaled $2.79 billion, compared with $2.71 billion for the first half of 2004. Net income totaled $78.7 million, compared with a $12.2 million loss.
Zillmer has been on the job for about six weeks. He previously was executive vice president of Aramark Corp., a world provider of food, uniform and support services, and president of that company’s food and support services group.
Allied Waste announced its results after the market closed Tuesday. Its stock, traded on the New York Stock Exchange, closed Tuesday at $7.80 a share, down 2.5 percent, on volume of nearly 1.6 million shares. The stock’s 52-week high was $12.52.