BFI Canada Ltd. (the “Company”) (TSX: BFC) has reported financial results for the three months and year ended December 31, 2008. All amounts are in thousands of Canadian dollars, with the exception of per share or trust unit and participating preferred share (“PPS”) amounts, unless otherwise stated.
“Our performance in the fourth quarter and the year continued to be strong despite the challenging economic climate and the sudden decline in recycling commodity prices,” said Keith Carrigan, Vice Chairman and Chief Executive Officer. “Revenues in the quarter grew 19.1 per cent to $298.9 million, and in 2008 we reached a financial milestone, with revenues in excess of $1.1 billion, an increase of 21.8 per cent over the prior year. Organic Canadian and U.S. segment revenues, which exclude acquisitions and fuel and environmental surcharges, increased 5.9 per cent and declined 4.0 per cent quarter over quarter, respectively, and grew 9.7 per cent and 2.4 per cent year over year, respectively.”
“Our financial performance reflects our ability to adjust quickly to the environment that we faced,” Mr. Carrigan continued. “EBITDA reached $83.2 million in the quarter, and $310.2 million dollars in 2008, reflecting comparative increases of a 19.9 per cent and 12.6 per cent, respectively. In the quarter and the year, before the impact of foreign currency translation, EBITDA(A) increased 5.9 per cent and 13.0 per cent, respectively. Free cash flow(B), which includes all capital and landfill expenditures, increased comparatively by 318.9 per cent and 54.1 per cent to $22.5 million and $102.5 million, respectively.”
“In 2009, we will adhere to the pragmatic and disciplined principles that have resulted in revenue, earnings and cash flow growth each year since our founding,” Mr. Carrigan added. “With our expected deleveraged balance sheet and positive free cash flow(B) position, we are poised to focus our efforts on our existing business and future opportunities.”
Financial Highlights for the Three Months and Year Ended December 31, 2008:
· Revenues increased 19.1 per cent and 21.8 per cent to $298.9 million and $1.1 billion.
· Revenue growth, before the impact of foreign currency translation, was 3.2 per cent and 22.3 per cent.
· EBITDA(A) growth, before the impact of foreign currency translation, was 5.9 per cent and 13.0 per cent.(A) increased 19.9 per cent and 12.6 per cent to $83.2 million and $310.2 million.
· Free cash flow(B) increased to $22.5 million and $102.5 million or 318.9 per cent and 54.1 per cent.
· For the quarter and year, core price increased 4.0 per cent and 4.1 per cent in Canada and 2.0 per cent and 3.3 per cent in the U.S.
· For the quarter and year, volumes increased 2.5 per cent and 5.3 per cent in Canada and decreased (4.6 per cent) and (0.9 per cent) in the U.S.
· In Canada, lower recycling commodity prices resulted in a revenue decline of (0.6 per cent) in the quarter, compared to a 0.4 per cent increase for the year, and decreased (1.4 per cent) in the quarter and were unchanged in the year, in the U.S.
Other Highlights for the Three Months and Year Ended December 31, 2008
· Effective February 12, 2009, the Company announced the issuance of 8,500 common shares for gross proceeds of $80,750. The underwriters have an option to purchase up to an additional 1,275 common shares on the same terms and conditions, which if exercised brings the total gross proceeds to $92,863. The Company intends to repay a portion of outstanding borrowings on its U.S. long-term debt facility.
· Effective August 18, 2008, the Company’s predecessor reduced its distribution per trust unit from $1.818 to $0.50 per annum. commencing with the distribution payable to holders of record on December 31, 2008.
· Effective September 25, 2008, the Company announced a special quarterly dividend payable in four equal amounts of $0.125 per share commencing on March 31, 2009.
· Effective October 1, 2008, the Company amended its Canadian and U.S. long-term debt facilities to reflect the change in its organizational structure.
· Effective July 30, 2008, the Company increased and amended its Canadian long-term debt facility.
· Effective August 6, 2008, the Company extended and amended its U.S. long-term debt facility.
· Effective August 1, 2008, the Company fixed the interest rate on U.S. $45,000 of variable rate demand solid waste disposal revenue bonds (“IRBs”).
· For the year ended December 31, 2008, the Company completed eight acquisitions, comprised of seven “tuck-ins” and one new market.
For more information, please contact
BFI Canada Ltd.
Director, Investor Relations and Corporate Communications