US ECOLOGY, INC. FOURTH QUARTER HIGHLIGHTS COMPARED TO PRIOR YEAR:
- Revenue of
$241.1 million , up 4% including NRC - Base Business revenue declined 8%; Event Business revenue declined 3%
- Field Services revenue grew 16%, excluding NRC
Goodwill and intangible asset impairment charges of$104.6 million - Net loss of
$92.4 million , or$2.97 per diluted share - Adjusted earnings per diluted share of
$0.19 - Adjusted EBITDA of
$42.8 million - Strong quarterly adjusted free cash flow generation, up 31% to
$17.3 million - Net debt of
$712.0 million , down from$727.9 million atDecember 31, 2019
2021 BUSINESS OUTLOOK:
- Revenue expected to range from
$940 million to$990 million - Adjusted earnings per diluted share expected to range from
$0.65 to$0.88 - Adjusted EBITDA expected to range from
$175 million to$185 million - Adjusted free cash flow expected to range from
$60 million to$77 million - Capital expenditures expected to range from
$85 million to$90 million
“Our business continues on the path to recovery as evidenced by the strong trends shown in the fourth quarter of 2020 and continuing into early 2021,” commented Chairman and Chief Executive Officer,
“These solid results wouldn’t have been possible without the tireless work and flexibility of the entire
REPORTING SEGMENT CHANGE
In connection with our full year 2020 reporting, we have redefined our reporting segments to better align with our strategy and to increase clarity. Our new reporting segments include Waste Solutions, Field Services and Energy Waste, which are defined below. Throughout this release we will be referring to these new reporting segments. All financial information presented in this release has been recast to reflect these changes.
Waste Solutions (“WS”) provides safe and compliant specialty waste management services including treatment, disposal, beneficial re-use, and recycling of hazardous, non-hazardous, and other specialty waste at Company-owned treatment, storage, and disposal facilities. WS encompasses the segment formerly known as Environmental Services but excludes our Energy Waste operations.
Field Services (“FS”) provides safe and compliant logistics and response solutions focusing on “in-field’ service offerings through our network of 10-day transfer facilities. Our logistics solutions include specialty waste packaging, collection, transportation, and total waste management. Our response solutions include land and marine based emergency response, OSRO standby compliance, remediation, and industrial services. The FS segment completes our vertically integrated model and serves to increase waste volumes into our Waste Solutions segment. FS is the segment formerly known as Field & Industrial Services.
Energy Waste (“EW”) provides safe and compliant energy waste management and critical support services to up-stream oil and gas customers in the Permian and
FOURTH QUARTER 2020 RESULTS
Revenue was
Revenue for the Waste Solutions segment was
Revenue for the Field Services segment was
Revenue for the Energy Waste segment was
Operating loss was
Net loss was
Cash earnings per diluted share was
Adjusted EBITDA was
Definitions and reconciliations of net income to adjusted EBITDA, earnings per diluted share to adjusted earnings per diluted share, earnings per diluted share to cash earnings per diluted share, and net cash provided by operating activities to adjusted free cash flow are attached as Exhibit A to this release.
2020 RESULTS
Revenue grew 36% to
Net loss was
Adjusted earnings per diluted share was
Adjusted EBITDA was
Cash earnings per diluted share was
Adjusted free cash flow was
Definitions and reconciliations of net income to adjusted EBITDA, earnings per diluted share to adjusted earnings per diluted share, earnings per diluted share to cash earnings per diluted share, and net cash provided by operating activities to adjusted free cash flow are attached as Exhibit A to this release.
Environmental, Social & Governance (“ESG”) UPDATE
Consistent with the long-term goals of our customers, we continue to upgrade our infrastructure to be more energy efficient and continue to deploy capital investments to expand our recycling technologies. We are aggressively pursuing sustainable waste solutions including technologies to recycle, recover or reuse various waste streams. We are also looking at opportunities to reduce the carbon footprint of our fleet of over 1,100 trucks including through the potential use of fleet electrification. Finally, the addition of
2021 BUSINESS OUTLOOK
“We are encouraged by the trends we saw in the fourth quarter of 2020 and the momentum we see early in 2021,” commented Feeler. “Our 2020 capital preservation initiatives and solid cash flow combined with the progress on the NRC integration have put us in a strong position to take advantage of any post-pandemic recovery to drive shareholder returns. Overall, we expect to see these positive trends drive revenue, adjusted EBITDA, and adjusted earnings per diluted share growth across all our business units. We also expect to grow adjusted free cash flow in 2021 despite an expected increase of over 50% in capital expenditures compared to 2020 as we recommence our regular capital investment programs. Our expected return to growth in 2021 also assumes that many of our capital preservation initiatives implemented last year are lifted and more normal business activities resume.”
The table below summarizes our 2021 business outlook:
| (in millions, except per share data) | |||||||
| Waste Solutions | Field Services | Energy Waste | |||||
| Revenue | |||||||
| Adjusted EBITDA | |||||||
| Adjusted earnings per diluted share | n/a | n/a | n/a | ||||
| Cash earnings per share | n/a | n/a | n/a | ||||
| Adjusted free cashflow | n/a | n/a | n/a | ||||
| Capital Expenditures | |||||||
We expect our Waste Solutions segment to see a solid recovery in Base Business with growth ranging from 5% to 7% in 2021, driven by strengthening manufacturing activity. We expect much of this recovery to occur in the second quarter of 2021 through the balance of the year. We continue to see positive trends in our Event Business pipeline and expect a healthy year of activity. Given the strength in 2020, and with several larger projects completing, we expect our Event Business to be flat to up low single digits in 2021.
We expect our Field Services segment to produce another year of solid growth, driven by our Emergency Response, Small Quantity Generation and Industrial Services business lines and continuing benefits from the integration of NRC.
We expect improvement in our Energy Waste segment in 2021, compared to the low point in mid-2020, as the pace of oil and gas drilling activity increases in the Permian and
Capital expenditures are expected to range between
The following table reconciles our projected net income to our projected adjusted EBITDA guidance range:
| For the Year Ending | |||||||
| (in thousands) | Low | High | |||||
| Projected Net Income | $ | 19,414 | $ | 26,725 | |||
| Income tax expense | 7,140 | 9,829 | |||||
| Interest expense, net | 27,312 | 27,312 | |||||
| Other income | (318 | ) | (318 | ) | |||
| Depreciation and amortization of plant and equipment | 72,362 | 72,362 | |||||
| Amortization of intangible assets | 34,580 | 34,580 | |||||
| Accretion and non-cash adjustments of closure & post-closure obligations | 5,354 | 5,354 | |||||
| 1,155 | 1,155 | ||||||
| Share-based compensation | 8,001 | 8,001 | |||||
| Projected Adjusted EBITDA | $ | 175,000 | $ | 185,000 | |||
The following table reconciles our projected earnings per diluted share to our projected adjusted earnings per diluted share and to our projected cash earnings per diluted share:
| For the Year Ending | |||||
| Low | High | ||||
| Projected earnings per diluted share | $ | 0.62 | $ | 0.85 | |
| Adjustments: | |||||
| Plus: Business development and integration expenses | $ | 0.03 | $ | 0.03 | |
| Projected adjusted earnings per diluted share | $ | 0.65 | $ | 0.88 | |
| Plus: projected amortization of Intangible assets | 0.81 | 0.81 | |||
| Projected cash earnings per diluted share | $ | 1.46 | $ | 1.69 | |
| Shares used in earnings per diluted share calculation | 31,376 | 31,376 | |||
The following table reconciles our projected net cash provided by operating activities to projected adjusted free cash flow:
| Year Ended | |||||
| (in thousands) | Low End of Guidance | High End of Guidance | |||
| Projected net cash provided by operating activities | $ | 143,000 | $ | 155,000 | |
| Less: Purchases of property and equipment | (90,000) | (85,000) | |||
| Plus: Business development and integration expenses, net of tax | 1,000 | 1,000 | |||
| Plus: Purchases of property and equipment for the | 4,000 | 4,000 | |||
| Plus: Payment of deferred/contingent purchase consideration | 2,000 | 2,000 | |||
| Projected Adjusted Free Cash Flow | $ | 60,000 | $ | 77,000 | |
Our adjusted EBITDA and earnings per diluted share guidance excludes goodwill impairment charges, business development and integration expenses and foreign currency translation gains or losses.
CONFERENCE CALL
Contact:
aziegler@darrowir.com www.usecology.com
ABOUT
Forward looking statements are only predictions and are not guarantees of performance. These statements are based on management’s beliefs and assumptions, which in turn are based on currently available information. Important assumptions include, among others, those regarding demand for the Company’s services, expansion of service offerings geographically or through new or expanded service lines, the timing and cost of planned capital expenditures, competitive conditions, and general economic conditions. These assumptions could prove inaccurate. Forward looking statements also involve known and unknown risks and uncertainties, which could cause actual results to differ materially from those contained in any forward-looking statement. Many of these factors are beyond our ability to control or predict. Such factors include developments related to the COVID-19 pandemic, fluctuations in commodity markets related to our business, the integration of NRC’s operations, the loss or failure to renew significant contracts, competition in our markets, adverse economic conditions, our compliance with applicable laws and regulations, potential liability in connection with providing oil spill response services and waste disposal services, the effect of existing or future laws and regulations related to greenhouse gases and climate change, the effect of our failure to comply with
Except as required by applicable law, including the securities laws of
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
| (in thousands, except per share data) | ||||||||||||||||
| (unaudited) | ||||||||||||||||
| Three Months Ended | Year Ended | |||||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||
| Revenue | ||||||||||||||||
| Waste Solutions | $ | 105,729 | $ | 113,159 | $ | 425,413 | $ | 440,547 | ||||||||
| Field Services | 130,536 | 105,549 | 473,754 | 232,402 | ||||||||||||
| Energy Waste | 4,809 | 12,560 | 34,687 | 12,560 | ||||||||||||
| Total | 241,074 | 231,268 | 933,854 | 685,509 | ||||||||||||
| Gross profit | ||||||||||||||||
| Waste Solutions | 38,286 | 46,993 | 161,282 | 170,992 | ||||||||||||
| Field Services | 27,902 | 17,642 | 82,266 | 35,007 | ||||||||||||
| Energy Waste | 885 | 3,835 | 1,501 | 3,835 | ||||||||||||
| Total | 67,073 | 68,470 | 245,049 | 209,834 | ||||||||||||
| Selling, general & administrative expenses | ||||||||||||||||
| Waste Solutions | 7,145 | 4,311 | 28,814 | 16,059 | ||||||||||||
| Field Services | 14,653 | 12,895 | 58,027 | 23,774 | ||||||||||||
| Energy Waste | 7,106 | 3,612 | 24,249 | 3,612 | ||||||||||||
| Corporate | 22,728 | 42,622 | 89,977 | 97,678 | ||||||||||||
| Total | 51,632 | 63,440 | 201,067 | 141,123 | ||||||||||||
| Waste Solutions | - | - | - | - | ||||||||||||
| Field Services | 24,300 | - | 41,000 | - | ||||||||||||
| Energy Waste | 80,300 | - | 363,900 | - | ||||||||||||
| Operating income (loss) | (89,159 | ) | 5,030 | (360,918 | ) | 68,711 | ||||||||||
| Other income (expense): | ||||||||||||||||
| Interest income | 7 | 38 | 258 | 605 | ||||||||||||
| Interest expense | (7,468 | ) | (7,730 | ) | (32,595 | ) | (19,239 | ) | ||||||||
| Foreign currency loss | (979 | ) | (120 | ) | (1,134 | ) | (733 | ) | ||||||||
| Other | 406 | 113 | 788 | 455 | ||||||||||||
| Total other expense | (8,034 | ) | (7,699 | ) | (32,683 | ) | (18,912 | ) | ||||||||
| Income (loss) before income taxes | (97,193 | ) | (2,669 | ) | (393,601 | ) | 49,799 | |||||||||
| Income tax (benefit) expense | (4,784 | ) | 795 | (4,242 | ) | 16,659 | ||||||||||
| Net income (loss) | $ | (92,409 | ) | $ | (3,464 | ) | $ | (389,359 | ) | $ | 33,140 | |||||
| Earnings (loss) per share: | ||||||||||||||||
| Basic | $ | (2.97 | ) | $ | (0.12 | ) | $ | (12.51 | ) | $ | 1.41 | |||||
| Diluted | $ | (2.97 | ) | $ | (0.12 | ) | $ | (12.51 | ) | $ | 1.40 | |||||
| Shares used in earnings (loss) per share calculation: | ||||||||||||||||
| Basic | 31,078 | 27,916 | 31,126 | 23,521 | ||||||||||||
| Diluted | 31,078 | 27,916 | 31,126 | 23,749 | ||||||||||||
| Dividends paid per share | $ | - | $ | 0.18 | $ | 0.18 | $ | 0.72 | ||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||
| (in thousands) | ||||||||
| (unaudited) | ||||||||
| Assets | ||||||||
| Current Assets: | ||||||||
| Cash and cash equivalents | $ | 73,848 | $ | 41,281 | ||||
| Receivables, net | 241,978 | 255,310 | ||||||
| Prepaid expenses and other current assets | 28,379 | 25,136 | ||||||
| Income tax receivable | 18,279 | 11,244 | ||||||
| Total current assets | 362,484 | 332,971 | ||||||
| Property and equipment, net | 456,637 | 478,768 | ||||||
| Operating lease assets | 51,474 | 57,396 | ||||||
| Restricted cash and investments | 5,598 | 5,069 | ||||||
| Intangible assets, net | 523,988 | 574,902 | ||||||
| 413,037 | 766,980 | |||||||
| Other assets | 18,065 | 15,158 | ||||||
| Total assets | $ | 1,831,283 | $ | 2,231,244 | ||||
| Liabilities and Stockholders’ Equity | ||||||||
| Current Liabilities: | ||||||||
| Accounts payable | $ | 35,881 | $ | 46,906 | ||||
| Deferred revenue | 15,267 | 14,788 | ||||||
| Accrued liabilities | 59,296 | 65,869 | ||||||
| Accrued salaries and benefits | 30,918 | 29,653 | ||||||
| Income tax payable | 977 | 726 | ||||||
| Current portion of long-term debt | 3,359 | 3,359 | ||||||
| Current portion of closure and post-closure obligations | 6,471 | 2,152 | ||||||
| Current portion of operating lease liabilities | 17,048 | 17,317 | ||||||
| Total current liabilities | 169,217 | 180,770 | ||||||
| Long-term debt | 782,484 | 765,842 | ||||||
| Long-term closure and post-closure obligations | 89,398 | 84,231 | ||||||
| Long-term operating lease liabilities | 35,069 | 39,954 | ||||||
| Other long-term liabilities | 32,201 | 20,722 | ||||||
| Deferred income taxes, net | 120,983 | 128,345 | ||||||
| Total liabilities | 1,229,352 | 1,219,864 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders’ Equity | ||||||||
| Common stock | 315 | 315 | ||||||
| Additional paid-in capital | 820,567 | 816,345 | ||||||
| Retained (deficit) earnings | (188,452 | ) | 206,574 | |||||
| (15,841 | ) | - | ||||||
| Accumulated other comprehensive loss | (14,658 | ) | (11,854 | ) | ||||
| Total stockholders’ equity | 601,931 | 1,011,380 | ||||||
| Total liabilities and stockholders’ equity | $ | 1,831,283 | $ | 2,231,244 | ||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
| (in thousands) | ||||||||
| (unaudited) | ||||||||
| For the Year Ended | ||||||||
| 2020 | 2019 | |||||||
| Cash Flows From Operating Activities: | ||||||||
| Net (loss) income | $ | (389,359 | ) | $ | 33,140 | |||
| Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||||||||
| 404,900 | - | |||||||
| Depreciation and amortization of property and equipment | 66,561 | 41,423 | ||||||
| Amortization of intangible assets | 37,344 | 15,491 | ||||||
| Accretion of closure and post-closure obligations | 4,000 | 4,388 | ||||||
| Integration-related property and equipment charges | 3,067 | - | ||||||
| Unrealized foreign currency gain | (1,472 | ) | (666 | ) | ||||
| Deferred income taxes | (4,148 | ) | 6,601 | |||||
| Share-based compensation expense | 6,651 | 5,544 | ||||||
| Share-based payment of business development and integration expenses | 1,182 | 3,717 | ||||||
| Unrecognized tax benefits | (8 | ) | (238 | ) | ||||
| Net loss on disposition of assets | 1,504 | 426 | ||||||
| Change in fair value of contingent consideration | (3,682 | ) | 349 | |||||
| Amortization of debt discount | 161 | 27 | ||||||
| Amortization of debt issuance costs | 2,217 | 1,007 | ||||||
| Gain on insurance proceeds from damaged property and equipment | - | (12,366 | ) | |||||
| Property and equipment impairment charges | - | 25 | ||||||
| Changes in assets and liabilities (net of effects of business acquisitions): | ||||||||
| Receivables | 8,381 | (9,357 | ) | |||||
| Income tax receivable | (7,049 | ) | (4,163 | ) | ||||
| Other assets | (5,443 | ) | (2,163 | ) | ||||
| Accounts payable and accrued liabilities | (13,628 | ) | (10,706 | ) | ||||
| Deferred revenue | (1,619 | ) | 967 | |||||
| Accrued salaries and benefits | (121 | ) | 8,326 | |||||
| Income tax payable | (549 | ) | (244 | ) | ||||
| Closure and post-closure obligations | (1,744 | ) | (1,912 | ) | ||||
| Net cash provided by operating activities | 107,146 | 79,616 | ||||||
| Cash Flows From Investing Activities: | ||||||||
| Purchases of property and equipment | (57,399 | ) | (58,100 | ) | ||||
| Business acquisitions, net of cash acquired | (3,309 | ) | (399,599 | ) | ||||
| Proceeds from sale of property and equipment | 1,897 | 1,182 | ||||||
| Purchases of restricted investments | (1,615 | ) | (1,197 | ) | ||||
| Proceeds from sale of restricted investments | 1,483 | 1,145 | ||||||
| Insurance proceeds from damaged property and equipment | 1,305 | 12,714 | ||||||
| Minority interest investment | - | (7,870 | ) | |||||
| Payment of acquired contingent consideration liabilities | - | (4,000 | ) | |||||
| Net cash used in investing activities | (57,638 | ) | (455,725 | ) | ||||
| Cash Flows From Financing Activities: | ||||||||
| Proceeds from long-term debt | 90,000 | 491,875 | ||||||
| Payments on long-term debt | (74,500 | ) | (80,000 | ) | ||||
| Proceeds from short-term borrowings | 72,353 | 77,997 | ||||||
| Payments on short-term borrowings | (72,353 | ) | (77,997 | ) | ||||
| Repurchases of common stock | (18,332 | ) | - | |||||
| Dividends paid | (5,667 | ) | (15,890 | ) | ||||
| Deferred financing costs paid | (1,144 | ) | (9,416 | ) | ||||
| Payment of contingent consideration liabilities | (2,517 | ) | - | |||||
| Payment of equipment financing obligations | (6,327 | ) | (1,539 | ) | ||||
| Other | 28 | (596 | ) | |||||
| Net cash (used in) provided by financing activities | (18,459 | ) | 384,434 | |||||
| Effect of foreign exchange rate changes on cash | 1,915 | 1,062 | ||||||
| Increase in cash and cash equivalents and restricted cash | 32,964 | 9,387 | ||||||
| Cash and cash equivalents and restricted cash at beginning of period | 42,140 | 32,753 | ||||||
| Cash and cash equivalents and restricted cash at end of period | $ | 75,104 | $ | 42,140 | ||||
EXHIBIT A
Non-GAAP Results and Reconciliations
Adjusted EBITDA, adjusted earnings (loss) per diluted share, cash earnings per diluted share and adjusted free cash flow should not be considered in isolation or as an alternative to, or substitute for, net income, cash flows generated by operations, investing or financing activities, or other financial statement data presented in the consolidated financial statements as indicators of financial performance or liquidity. Adjusted EBITDA, adjusted earnings (loss) per diluted share and adjusted free cash flow have limitations as analytical tools and should not be considered in isolation or a substitute for analyzing our results as reported under GAAP. Some of the limitations are:
- Adjusted EBITDA does not reflect changes in, or cash requirements for, our working capital needs;
- Adjusted EBITDA does not reflect our interest expense, or the requirements necessary to service interest or principal payments on our debt;
- Adjusted EBITDA does not reflect our income tax expenses or the cash requirements to pay our taxes;
- Adjusted EBITDA does not reflect our cash expenditures or future requirements for capital expenditures or contractual commitments;
- Although depreciation and amortization charges are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and adjusted EBITDA does not reflect cash requirements for such replacements;
- Adjusted EBITDA does not reflect our business development and integration expenses, which may vary significantly quarter to quarter;
- Adjusted earnings (loss) per diluted share does not reflect property insurance recoveries;
- Adjusted free cash flow does not reflect business development and integration expenses, which may vary significantly quarter to quarter;
- Adjusted free cash flow does not reflect capital expenditures associated with the rebuild of our
Grand View, Idaho facility which are expected to be recovered through insurance proceeds; - Adjusted free cash flow does not reflect payments of deferred/contingent purchase consideration.
Adjusted EBITDA
The Company defines adjusted EBITDA as net income before interest expense, interest income, income tax expense/benefit, depreciation, amortization, share-based compensation, accretion of closure and post-closure liabilities, foreign currency gain/loss, non-cash impairment charges, property insurance recoveries, business development and integration expenses and other income/expense.
The following reconciliation itemizes the differences between reported net income (loss) and adjusted EBITDA for the three months and year ended
| (in thousands) | Three Months Ended | Year Ended | |||||||||||||
| 2020 | 2019 | 2020 | 2019 | ||||||||||||
| Net income (loss) | $ | (92,409 | ) | $ | (3,464 | ) | $ | (389,359 | ) | $ | 33,140 | ||||
| Income tax (benefit) expense | (4,784 | ) | 795 | (4,242 | ) | 16,659 | |||||||||
| Interest expense | 7,468 | 7,730 | 32,595 | 19,239 | |||||||||||
| Interest income | (7 | ) | (38 | ) | (258 | ) | (605 | ) | |||||||
| Foreign currency loss | 979 | 120 | 1,134 | 733 | |||||||||||
| Other income | (406 | ) | (113 | ) | (788 | ) | (455 | ) | |||||||
| Property and equipment impairment charges | - | - | - | 25 | |||||||||||
| 104,600 | - | 404,900 | - | ||||||||||||
| Depreciation and amortization of plant and equipment | 11,730 | 14,767 | 66,561 | 41,423 | |||||||||||
| Amortization of intangible assets | 9,532 | 6,891 | 37,344 | 15,491 | |||||||||||
| Share-based compensation | 1,790 | 1,831 | 6,651 | 5,544 | |||||||||||
| Accretion and non-cash adjustments of closure & post-closure obligations | 188 | 991 | 4,000 | 4,388 | |||||||||||
| Property insurance recoveries | - | (2,715 | ) | - | (12,366 | ) | |||||||||
| Business development and integration expenses | 4,114 | 19,454 | 11,621 | 26,150 | |||||||||||
| Adjusted EBITDA | $ | 42,795 | $ | 46,249 | $ | 170,159 | $ | 149,366 | |||||||
Adjusted Earnings (Loss) Per Diluted Share
The Company defines adjusted earnings (loss) per diluted share as net income adjusted for the after-tax impact of the non-cash impairment charges, the after-tax impact of business development and integration costs, the after-tax impact of purchase accounting-related depreciation and amortization true-ups, the after-tax impact of property insurance recoveries, and non-cash foreign currency translation gains or losses, divided by the number of diluted shares used in the earnings per diluted share calculation.
Impairment charges excluded from the earnings (loss) per diluted share calculation are related to the Company’s assessment of goodwill and intangible assets in 2020. Business development and integration costs relate to expenses incurred to evaluate businesses for potential acquisition or costs related to closing and integrating successfully acquired businesses and transaction expenses. Purchase accounting-related depreciation and amortization true-ups relate to the retrospective impact of adjustments to the fair values of property, plant and equipment and intangible assets related to the NRC merger. Property and equipment impairment charges excluded from the earnings per diluted share calculation are related to the Company’s write-off of the net book value of damaged or destroyed property and equipment as a result of the accident at our
We believe excluding the non-cash impairment charges, business development and integration costs, purchase accounting-related depreciation and amortization true-ups, property and equipment impairment charges and property insurance recoveries related to the accident at our
Cash Earnings Per Diluted Share
The Company defines cash earnings per diluted share as adjusted earnings per diluted share (see definition above) plus amortization of intangible assets, net of tax.
The following reconciliation itemizes the differences between reported net income (loss) and earnings (loss) per diluted share to adjusted net income and adjusted earnings per diluted share and cash earnings per diluted share for the three months and year ended
| (in thousands, except per share data) | Three Months Ended | |||||||||||||||||||||||||
| 2020 | 2019 | |||||||||||||||||||||||||
| (Loss) income before income taxes | Income tax benefit (expense) | Net (loss) income | per share | (Loss) income before income taxes | Income tax benefit (expense) | Net (loss) income | per share | |||||||||||||||||||
| As Reported | $ | (97,193 | ) | $ | 4,784 | $ | (92,409 | ) | $ | (2.97 | ) | $ | (2,669 | ) | $ | (795 | ) | $ | (3,464 | ) | $ | (0.12 | ) | |||
| Adjustments: | ||||||||||||||||||||||||||
| Plus: | 104,600 | (5,776 | ) | 98,824 | 3.18 | - | - | - | - | |||||||||||||||||
| Plus: Business development and integration expenses | 4,114 | (1,131 | ) | 2,983 | 0.09 | 19,454 | (3,576 | ) | 15,878 | 0.57 | ||||||||||||||||
| Less: Purchase accounting depreciation true-up related to prior periods | (5,734 | ) | 1,577 | (4,157 | ) | (0.13 | ) | - | - | - | - | |||||||||||||||
| Less: Property insurance recoveries | - | - | - | - | (2,715 | ) | 733 | (1,982 | ) | (0.07 | ) | |||||||||||||||
| Foreign currency loss | 979 | (269 | ) | 710 | 0.02 | 120 | (32 | ) | 88 | - | ||||||||||||||||
| As Adjusted | $ | 6,766 | $ | (815 | ) | $ | 5,951 | $ | 0.19 | $ | 14,190 | $ | (3,670 | ) | $ | 10,520 | $ | 0.38 | ||||||||
| Plus: Amortization of intangible assets | $ | 9,532 | $ | (2,619 | ) | 6,913 | 0.22 | $ | 6,891 | $ | (1,838 | ) | 5,053 | 0.18 | ||||||||||||
| Cash earnings per diluted share | $ | 16,298 | $ | (3,434 | ) | $ | 12,864 | $ | 0.41 | $ | 21,081 | $ | (5,508 | ) | $ | 15,573 | $ | 0.56 | ||||||||
| Shares used in (loss) earnings per diluted share calculation | 31,078 | 27,916 | ||||||||||||||||||||||||
| (in thousands, except per share data) | Year Ended | |||||||||||||||||||||||||
| 2020 | 2019 | |||||||||||||||||||||||||
| (Loss) income before income taxes | Income tax benefit (expense) | Net (loss) income | per share | Income before income taxes | Income tax benefit (expense) | Net income | per share | |||||||||||||||||||
| As Reported | $ | (393,601 | ) | $ | 4,242 | $ | (389,359 | ) | $ | (12.51 | ) | $ | 49,799 | $ | (16,659 | ) | $ | 33,140 | $ | 1.40 | ||||||
| Adjustments: | ||||||||||||||||||||||||||
| Plus: | 404,900 | (5,776 | ) | 399,124 | 12.82 | - | - | - | - | |||||||||||||||||
| Plus: Business development and integration expenses | 11,621 | (3,196 | ) | 8,425 | 0.27 | 26,150 | (4,192 | ) | 21,958 | 0.92 | ||||||||||||||||
| Plus: Property and equipment impairment charges | - | - | - | - | 25 | - | 25 | - | ||||||||||||||||||
| Less: Property insurance recoveries | - | - | - | - | (12,366 | ) | 3,339 | (9,027 | ) | (0.38 | ) | |||||||||||||||
| Foreign currency loss | 1,134 | (312 | ) | 822 | 0.03 | 733 | (198 | ) | 535 | 0.02 | ||||||||||||||||
| As Adjusted | $ | 24,054 | $ | (5,042 | ) | $ | 19,012 | $ | 0.61 | $ | 64,341 | $ | (17,710 | ) | $ | 46,631 | $ | 1.96 | ||||||||
| Plus: Amortization of intangible assets | $ | 37,344 | $ | (10,275 | ) | 27,069 | 0.87 | $ | 15,491 | $ | (4,184 | ) | 11,307 | 0.48 | ||||||||||||
| Cash earnings per diluted share | $ | 61,398 | $ | (15,317 | ) | $ | 46,081 | $ | 1.48 | $ | 79,832 | $ | (21,894 | ) | $ | 57,938 | $ | 2.44 | ||||||||
| Shares used in (loss) earnings per diluted share calculation | 31,126 | 23,749 | ||||||||||||||||||||||||
Adjusted Free Cash Flow
The Company defines adjusted free cash flow as net cash provided by operating activities less purchases of property plant and equipment, plus business development and integration expenses, plus payments of deferred/contingent purchase consideration, plus purchases of property and equipment for the
The following reconciliation itemizes the differences between reported net cash from operating activities to adjusted free cash flow for the three months and year ended
| Three Months Ended | Year Ended | ||||||||||||||
| (in thousands) | 2020 | 2019 | 2020 | 2019 | |||||||||||
| Adjusted Free Cash Flow Reconciliation | |||||||||||||||
| Net cash provided by operating activities | $ | 23,902 | $ | 15,614 | $ | 107,146 | $ | 79,616 | |||||||
| Less: Purchases of property and equipment | (12,275 | ) | (19,657 | ) | (57,399 | ) | (58,100 | ) | |||||||
| Plus: Business development and integration expenses, net of tax | 2,983 | 15,878 | 8,425 | 21,958 | |||||||||||
| Plus: Purchases of property and equipment for the | 1,469 | 752 | 4,284 | 2,796 | |||||||||||
| Plus: Payment of deferred/contingent purchase consideration | 432 | - | 4,432 | - | |||||||||||
| Plus: Proceeds from sale of property and equipment | 818 | 633 | 1,897 | 1,182 | |||||||||||
| Adjusted Free Cash Flow | $ | 17,329 | $ | 13,220 | $ | 68,785 | $ | 47,452 | |||||||
2021 GlobeNewswire, Inc., source
