Laidlaw International, Inc.

Laidlaw International, Inc.

January 06, 2005 17:52 ET

Laidlaw International Reports First Quarter Fiscal 2005 Results


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: LAIDLAW INTERNATIONAL, INC.

NYSE SYMBOL: LI

JANUARY 6, 2005 - 17:52 ET

Laidlaw International Reports First Quarter Fiscal
2005 Results

NAPERVILLE, Ill.--(CCNMatthews - Jan 6, 2005) -

Laidlaw International, Inc. (NYSE:LI) today reported net income of $30.4
million for its first quarter fiscal 2005, an increase of 34.5% from net
income of $22.6 million for the first quarter of the last fiscal year.
Earnings per share were $0.29 for the first quarter of 2005 as compared
to earnings per share of $0.22 in the prior year's quarter.

Revenue of $1,227.3 million was up $17.0 million, or 1.4%, from $1,210.3
million for the prior year period largely due to revenue growth from
Laidlaw International's healthcare companies.

Operating income for the first quarter of 2005 of $80.1 million was up
$10.6 million, or 15.3%, compared to $69.5 million for the prior year
quarter. Operating income benefited from the revenue growth and a focus
on cost controls, despite a difficult fuel environment.

First quarter EBITDA (a non-GAAP financial measure, representing
operating income plus depreciation and amortization) was $161.3 million
as compared to an EBITDA of $150.2 million in the first quarter of
fiscal 2004, a 70 basis point expansion in margin to 13.1% from 12.4%.
Schedules reconciling EBITDA to net income and EBITDA to net cash used
in operating activities are provided as a supplement to this release.

"Our focus continues to be on the improvement of the operational
performance of each of our businesses," said Kevin Benson, President and
Chief Executive Officer of Laidlaw International, Inc. "The initiatives
underway in our school bus operations are developing as planned and
should result in a steady improvement in margins over the next few
years. Greyhound is also implementing changes in response to customer
demand and will continue to refine its services as it pursues the
optimum network." Mr. Benson added, "As we announced in December, we
expect to complete the sale of the healthcare companies by the end of
March 2005, the result of which will be a much improved balance sheet."

As of November 30, 2004, the company had unrestricted cash and cash
equivalents of $99.4 million and debt outstanding of $1,166.2 million.

The company will hold a conference call hosted by senior management to
discuss the financial results on Friday, January 7, 2005 at 10:00 a.m.
(eastern standard time). A web cast of the conference call will be
accessible at Laidlaw International's website www.laidlaw.com.



To participate in the call, please dial:

888-889-5602 - (US and Canada)

973-935-8599 - (International)



A replay will be available immediately after the conference call through
February 7, 2005. To access the replay, dial 877-519-4471 (U.S and
Canada) or 973-341-3080 (International); access code: 5495681.
Additionally, the web cast will be archived on the company's website.

Forward-Looking Statements

Certain statements contained in this press release, including statements
regarding the status of future operating results and market
opportunities and other statements that are not historical facts, are
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. These forward-looking statements can be
identified by the use of terminology such as: believe, hope, may,
anticipate, should, intend, plan, will, expect, estimate, continue,
project, positioned, strategy and similar expressions. Such statements
involve certain risks, uncertainties and assumptions that include, but
are not limited to:

-- Economic and other market factors, including competitive pressures
and changes in pricing policies;

-- The ability to implement initiatives designed to increase operating
efficiencies or improve results;

-- The successful completion of the sale of its healthcare companies,
American Medical Response and EmCare;

-- Greyhound Lines' ability to continue operating as a going concern;

-- Control of costs related to accident and other risk management
claims;

-- Costs and risks associated with litigation;

-- Changes in interpretations of existing, or adoption of new
legislation, regulations or other laws;

-- Changes in homeland security or terrorist activity;

-- Significant restrictive covenants in the company's and its
subsidiaries' various credit facilities;

-- Potential changes in the mix of businesses we operate; and

-- Increases in prices of fuel and shortages.

Should one or more of these risks or uncertainties materialize, or
should underlying assumptions prove incorrect, actual outcomes may vary
materially from those indicated. In light of these risks and
uncertainties you are cautioned not to place undue reliance on these
forward-looking statements. The company undertakes no obligation to
publicly update forward-looking statements, whether as a result of new
information, future events or otherwise. You are advised, however, to
consult any further disclosures the company makes on related subjects,
including in "Note Regarding Forward-Looking Statements" and "Item 7
Management's Discussion and Analysis of Financial Condition and Results
of Operations " in the company's Form 10-K for the year ended August 31,
2004, and as may be detailed in the company's other filings from time to
time with the Securities and Exchange Commission.

Laidlaw International, Inc. is a holding company for North America's
largest providers of school and inter-city bus transport, public
transit, patient transportation and emergency department management
services. The company's shares trade on the New York Stock Exchange
(NYSE:LI). For more information, visit our website at www.laidlaw.com.



LAIDLAW INTERNATIONAL, INC.
Consolidated Statements of Operations
(In millions except per share amounts)
(unaudited)

Three Months Ended
November 30,
-------------------
2004 2003
--------- ---------

Revenue $1,227.3 $1,210.3

Compensation expense 688.7 685.0
Accident claims and professional liability expenses 80.0 89.6
Vehicle related costs 68.2 69.9
Occupancy costs 48.9 49.9
Fuel 56.5 44.4
Depreciation 76.5 76.1
Amortization 4.7 4.6
Other operating expenses 123.7 121.3
--------- ---------

Operating income 80.1 69.5

Interest expense (30.4) (32.7)
Other income, net 1.4 0.9
--------- ---------

Income before income taxes 51.1 37.7
Income tax expense (20.7) (15.1)
--------- ---------

Net income $30.4 $22.6
========= =========

Earnings per share

Basic $0.30 $0.23
Diluted $0.29 $0.22

Weighted average number of common shares outstanding

Basic 100.0 100.0
Diluted 104.1 103.8



LAIDLAW INTERNATIONAL, INC.
Operating Highlights
($ in millions)
(unaudited)

Three Months Ended
November 30,
-------------------
2004 2003
--------- ---------

Revenue
Education services $451.9 $455.7
Public transit services 77.0 72.1
Greyhound 284.8 287.1
Healthcare transportation services 269.9 262.0
Emergency management services 143.7 133.4
--------- ---------
Consolidated $1,227.3 $1,210.3
========= =========

EBITDA
Education services $114.2 $109.5
Public transit services 3.6 0.5
Greyhound 12.2 10.6
Healthcare transportation services 22.8 19.0
Emergency management services 8.5 10.6
--------- ---------
Consolidated $161.3 $150.2
========= =========

EBITDA Margins
Education services 25.3% 24.0%
Public transit services 4.7% 0.7%
Greyhound 4.3% 3.7%
Healthcare transportation services 8.4% 7.3%
Emergency management services 5.9% 7.9%
Consolidated 13.1% 12.4%

Net Capital Expenditures $22.9 $39.3

EBITDA is presented solely as a supplemental disclosure with respect
to liquidity because the company believes it provides useful
information regarding its ability to service or incur debt. EBITDA is
not calculated the same way by all companies. We define EBITDA as
operating income plus depreciation and amortization. EBITDA is not
intended to represent cash flow for the period, is not presented as an
alternative to operating income as an indicator of operating
performance, should not be considered in isolation or as a substitute
for measures of performance prepared in accordance with generally
accepted accounting principles ("GAAP") and is not indicative of
operating income or cash flow from operations as determined under
GAAP.



LAIDLAW INTERNATIONAL, INC.
Reconciliation of Non-GAAP Financial Measures
($ in millions
(unaudited)

Three Months Ended
November 30,
-------------------
2004 2003
--------- ---------
EBITDA $161.3 $150.2

Depreciation and amortization (81.2) (80.7)
Interest expense (30.4) (32.7)
Other income, net 1.4 0.9
Income tax expense (20.7) (15.1)
--------- ---------

Net income $30.4 $22.6
========= =========

Three Months Ended
November 30,
-------------------
2004 2003
--------- ---------
EBITDA $161.3 $150.2

Cash paid for interest (20.0) (20.2)
Cash received (paid) for income taxes (0.6) 1.1
Increase in claims liability and professional
liability reserves 9.4 5.8
Cash used in financing other working capital items (185.5) (189.6)
Decrease (increase) in restricted cash and cash
Equivalents (6.5) 1.2
Other (1.8) (0.1)
--------- ---------

Net cash used in operating activities $(43.7) $(51.6)
========= =========

Net cash used in investing activities $(27.9) $(47.0)
========= =========

Net cash provided by financing activities $13.0 $73.4
========= =========

EBITDA is presented solely as a supplemental disclosure with respect
to liquidity because the company believes it provides useful
information regarding its ability to service or incur debt. EBITDA is
not calculated the same way by all companies. We define EBITDA as
operating income plus depreciation and amortization. EBITDA is not
intended to represent cash flow for the period, is not presented as an
alternative to operating income as an indicator of operating
performance, should not be considered in isolation or as a substitute
for measures of performance prepared in accordance with generally
accepted accounting principles ("GAAP") and is not indicative of
operating income or cash flow from operations as determined under
GAAP.



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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Laidlaw International, Inc.
    Sarah Lewensohn, 630-848-3120
    Director, Investor Relations