SOURCE: Waste Connections Inc

October 19, 2010 16:04 ET

Waste Connections Reports Third Quarter 2010 Results

FOLSOM, CA--(Marketwire - October 19, 2010) - Waste Connections, Inc. (NYSE: WCN)

-- Revenue of $345.8 million, up 9.4% over prior year period
-- Internal growth of 8.2% and operating margins above expectations
-- GAAP EPS and adjusted EPS* of $0.53, up 20.5% over prior year period
-- YTD net cash provided by operating activities of $242.3 million
-- YTD free cash flow* of $170.5 million, or 17.3% of revenue
-- Announces acquisitions with total annualized revenue of approximately
   $20 million
-- Repurchased approximately 4.5% of common stock YTD

Waste Connections, Inc. (NYSE: WCN) today announced its results for the third quarter of 2010. Revenue totaled $345.8 million, a 9.4% increase over revenue of $316.0 million in the year ago period. Operating income was $75.7 million, or 21.9% of revenue, versus $64.8 million in the third quarter of 2009. Net income attributable to Waste Connections in the quarter was $41.0 million, or $0.53 per share on a diluted basis of 77.9 million shares. In the year ago period, the Company reported net income attributable to Waste Connections of $34.2 million, or $0.43 per share on a diluted basis of 79.8 million shares. The effective tax rate in the quarter was 39.2% compared to 36.0% in the year ago period.

Adjusted net income attributable to Waste Connections in the quarter was $41.4 million*, or $0.53 per share*, adjusting primarily for acquisition-related costs expensed due to the implementation of new accounting guidance for business combinations effective January 1, 2009. Adjusted net income attributable to Waste Connections in the prior year period was $35.0 million*, or $0.44 per share*, also adjusted primarily for acquisition-related costs.

Non-cash costs for equity-based compensation, amortization of acquisition-related intangibles, and amortization of debt discount related to convertible debt instruments in connection with the adoption of new accounting guidance on January 1, 2009, were $6.5 million ($4.0 million net of taxes, or approximately $0.05 per share) in the quarter compared to $7.2 million ($4.5 million net of taxes, or approximately $0.06 per share) in the year ago period.

"We once again are extremely pleased with our results in the quarter as we exceeded the upper end of our expectations. Increased special waste activity and MSW volumes at our landfills, combined with continuing strength in recycled commodity values and discipline in core pricing, were the primary drivers of an approximate 110 basis points expansion in adjusted operating income before depreciation and amortization* as a percentage of revenue and a more than 20% increase in earnings per share compared to the year-ago period," said Ronald J. Mittelstaedt, Chairman and Chief Executive Officer. "Our strong operating performance and free cash flow generation continue to de-lever our balance sheet despite increasing outlays for share repurchases and acquisitions. The stock split and quarterly dividend initiation also announced today reinforce our commitment to broaden our investor base and maximize returns to shareholders, while maintaining continuing flexibility to fund our growth strategy."

Mr. Mittelstaedt added, "Recent acquisition activity brings the total annualized revenue for signed or completed transactions year-to-date to approximately $40 million. In October, we acquired an E&P waste treatment and disposal company outside Lake Charles, Louisiana, that complements the integrated asset platform we acquired in Louisiana in July. We also signed an agreement to acquire Stutzman Refuse & Disposal Inc., a provider of solid waste collection and recycling services across 14 counties in central Kansas and contiguous to our existing operations; we expect this transaction to close in early November."

* A non-GAAP measure; see accompanying Non-GAAP Reconciliation Schedule.

For the nine months ended September 30, 2010, revenue was $983.8 million, an 11.6% increase over revenue of $881.5 million in the year ago period. Operating income was $204.6 million, versus $171.8 million for the same period in 2009. Net income attributable to Waste Connections for the nine months ended September 30, 2010, was $99.0 million, or $1.26 per share on a diluted basis of 78.3 million shares. In the year ago period, the Company reported net income attributable to Waste Connections of $86.6 million, or $1.08 per share on a diluted basis of 80.5 million shares. Adjusted net income attributable to Waste Connections for the nine months ended September 30, 2010, was $108.3 million*, or $1.38 per share*, compared to $88.6 million*, or $1.10 per share* in the year ago period.

For the nine months ended September 30, 2010, non-cash costs for equity-based compensation, amortization of acquisition-related intangibles, loss on the early redemption of the 2026 Notes (net of make-whole payment), and amortization of debt discount related to convertible debt instruments in connection with the adoption of new accounting guidance on January 1, 2009, were $22.8 million ($14.1 million net of taxes, or approximately $0.18 per share), compared to $19.8 million ($12.3 million net of taxes, or approximately $0.15 per share) in the year ago period.

Waste Connections will be hosting a conference call related to third quarter earnings and fourth quarter outlook on October 20th at 8:30 A.M. Eastern Time. The call will be broadcast live over the Internet at www.streetevents.com or through a link on our web site at www.wasteconnections.com. A playback of the call will be available at both of these web sites.

Waste Connections, Inc. is an integrated solid waste services company that provides solid waste collection, transfer, disposal and recycling services in mostly secondary markets in the Western and Southern U.S. The Company serves approximately two million residential, commercial and industrial customers from a network of operations in 27 states. The Company also provides intermodal services for the movement of containers in the Pacific Northwest. Waste Connections, Inc. was founded in September 1997 and is headquartered in Folsom, California.

For more information, visit the Waste Connections web site at www.wasteconnections.com. Copies of financial literature, including this release, are available on the Waste Connections web site or through contacting us directly at (916) 608-8200.

* A non-GAAP measure; see accompanying Non-GAAP Reconciliation Schedule.

Information Regarding Forward-Looking Statements

Certain statements contained in this release are forward-looking in nature, including statements related to expected share repurchases, dividend payments, expected revenues from closed acquisitions, the closing of signed acquisitions and future acquisition activity. These statements can be identified by the use of forward-looking terminology such as "believes," "expects," "may," "will," "should," or "anticipates," or the negative thereof or comparable terminology, or by discussions of strategy. Our business and operations are subject to a variety of risks and uncertainties and, consequently, actual results may differ materially from those projected by any forward-looking statements. Factors that could cause actual results to differ from those projected include, but are not limited to, the following: (1) our acquisitions may not be successful, resulting in changes in strategy, operating losses or a loss on sale of the business acquired; (2) a portion of our growth and future financial performance depends on our ability to integrate acquired businesses into our organization and operations; (3) downturns in the worldwide economy adversely affect operating results; (4) our results are vulnerable to economic conditions and seasonal factors affecting the regions in which we operate; (5) we may be subject in the normal course of business to judicial, administrative or other third party proceedings that could interrupt or limit our operations, require expensive remediation, result in adverse judgments, settlements or fines and create negative publicity; (6) we may be unable to compete effectively with larger and better capitalized companies and governmental service providers; (7) we may lose contracts through competitive bidding, early termination or governmental action; (8) price increases may not be adequate to offset the impact of increased costs or may cause us to lose volume; (9) increases in the price of fuel may adversely affect our business and reduce our operating margins; (10) increases in labor and disposal and related transportation costs could impact our financial results; (11) efforts by labor unions could divert management attention and adversely affect operating results; (12) we could face significant withdrawal liability if we withdraw from participation in one or more multiemployer pension plans in which we participate; (13) increases in insurance costs and the amount that we self-insure for various risks could reduce our operating margins and reported earnings; (14) competition for acquisition candidates, consolidation within the waste industry and economic and market conditions may limit our ability to grow through acquisitions; (15) our indebtedness could adversely affect our financial condition; we may incur substantially more debt in the future; (16) each business that we acquire or have acquired may have liabilities or risks that we fail or are unable to discover, including environmental liabilities; (17) liabilities for environmental damage may adversely affect our financial condition, business and earnings; (18) our accruals for our landfill site closure and post-closure costs may be inadequate; (19) the financial soundness of our customers could affect our business and operating results; (20) we depend significantly on the services of the members of our senior, regional and district management team, and the departure of any of those persons could cause our operating results to suffer; (21) our decentralized decision-making structure could allow local managers to make decisions that adversely affect our operating results; (22) we may incur additional charges related to capitalized expenditures of landfill development projects, which would decrease our earnings; (23) because we depend on railroads for our intermodal operations, our operating results and financial condition are likely to be adversely affected by any reduction or deterioration in rail service; (24) our financial results are based upon estimates and assumptions that may differ from actual results; (25) the adoption of new accounting standards or interpretations could adversely affect our financial results; (26) our financial and operating performance may be affected by the inability to renew landfill operating permits, obtain new landfills and expand existing ones; (27) future changes in laws or renewed enforcement of laws regulating the flow of solid waste in interstate commerce could adversely affect our operating results; (28) extensive and evolving environmental and health and safety laws and regulations may restrict our operations and growth and increase our costs; (29) climate change regulations may adversely affect operating results; (30) extensive regulations that govern the design, operation and closure of landfills may restrict our landfill operations or increase our costs of operating landfills; (31) alternatives to landfill disposal may cause our revenues and operating results to decline; (32) fluctuations in prices for recycled commodities that we sell and rebates we offer to customers may cause our revenues and operating results to decline; and (33) unusually adverse weather conditions may interfere with our operations, harming our operating results. These risks and uncertainties, as well as others, are discussed in greater detail in our filings with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q. There may be additional risks of which we are not presently aware or that we currently believe are immaterial which could have an adverse impact on our business. We make no commitment to revise or update any forward-looking statements in order to reflect events or circumstances that may change.

- financial tables attached -

                         WASTE CONNECTIONS, INC.
              CONDENSED CONSOLIDATED STATEMENTS OF INCOME
        THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2009 AND 2010
                             (Unaudited)
          (in thousands, except share and per share amounts)


                              Three months ended       Nine months ended
                                 September 30,           September 30,
                            ----------------------  ----------------------
                               2009        2010        2009        2010
                            ----------  ----------  ----------  ----------

Revenues                    $  315,990  $  345,785  $  881,496  $  983,802
Operating expenses:
   Cost of operations          180,440     193,638     510,830     557,974
   Selling, general and
    administrative              35,753      38,455     104,411     110,465
   Depreciation                 31,226      34,441      86,127      99,349
   Amortization of
    intangibles                  3,671       3,616       9,351      10,800
   Loss (gain) on disposal
    of assets                      139         (50)     (1,037)        572
                            ----------  ----------  ----------  ----------
Operating income                64,761      75,685     171,814     204,642

Interest expense               (12,259)     (9,419)    (36,817)    (30,842)
Interest income                    134         135       1,275         453
Loss on extinguishment
 of debt                             -           -           -     (10,193)
Other income, net                  879       1,500       1,055       1,970
                            ----------  ----------  ----------  ----------
Income before income tax
 provision                      53,515      67,901     137,327     166,030

Income tax provision           (19,252)    (26,644)    (50,070)    (66,323)
                            ----------  ----------  ----------  ----------
Net income                  $   34,263  $   41,257  $   87,257  $   99,707
Less: net income
 attributable to
 noncontrolling interests         (113)       (271)       (691)       (748)
                            ==========  ==========  ==========  ==========
Net income attributable to
 Waste Connections          $   34,150  $   40,986  $   86,566  $   98,959
                            ==========  ==========  ==========  ==========

Earnings per common share
 attributable to Waste
 Connections' common
 stockholders:
   Basic                    $     0.43  $     0.53  $     1.09  $     1.28
                            ==========  ==========  ==========  ==========

   Diluted                  $     0.43  $     0.53  $     1.08  $     1.26
                            ==========  ==========  ==========  ==========

Shares used in the per
 share calculations:
   Basic                    78,837,984  77,062,885  79,618,566  77,419,498
                            ==========  ==========  ==========  ==========
   Diluted                  79,824,616  77,852,569  80,468,180  78,281,132
                            ==========  ==========  ==========  ==========



                         WASTE CONNECTIONS, INC.
                 CONDENSED CONSOLIDATED BALANCE SHEETS
                              (Unaudited)
         (in thousands, except share and per share amounts)


                                                 December 31, September 30,
                                                      2009         2010
                                                  -----------  -----------
ASSETS
Current assets:
 Cash and equivalents                             $     9,639  $    13,556
 Accounts receivable, net of allowance for
  doubtful accounts of $4,058 and $4,241 at
  December 31, 2009 and September 30, 2010,
  respectively                                        138,972      155,082
 Deferred income taxes                                 17,748       18,554
 Prepaid expenses and other current assets             33,495       27,372
                                                  -----------  -----------
    Total current assets                              199,854      214,564

Property and equipment, net                         1,308,392    1,303,463
Goodwill                                              906,710      910,286
Intangible assets, net                                354,303      344,690
Restricted assets                                      27,377       28,823
Other assets, net                                      23,812       22,237
                                                  -----------  -----------
                                                  $ 2,820,448  $ 2,824,063
                                                  ===========  ===========

LIABILITIES AND EQUITY
Current liabilities:
 Accounts payable                                 $    86,669  $    80,471
 Book overdraft                                        12,117       11,743
 Accrued liabilities                                   93,380      103,065
 Deferred revenue                                      50,138       53,598
 Current portion of long-term debt and notes
  payable                                               2,609        1,849
                                                  -----------  -----------
    Total current liabilities                         244,913      250,726

Long-term debt and notes payable                      867,554      831,123
Other long-term liabilities                            45,013       49,460
Deferred income taxes                                 305,932      319,870
                                                  -----------  -----------
    Total liabilities                               1,463,412    1,451,179

Commitments and contingencies

Equity:
Preferred stock: $0.01 par value; 7,500,000
 shares authorized; none issued and outstanding             -            -
Common stock: $0.01 par value; 150,000,000 shares
 authorized;  78,599,083 and 76,757,970 shares
 issued and outstanding at December 31, 2009 and
 September 30, 2010, respectively                        786           767
Additional paid-in capital                            625,173      543,555
Retained earnings                                     732,738      831,697
Accumulated other comprehensive loss                   (4,892)      (7,114)
                                                  -----------  -----------
 Total Waste Connections' equity                    1,353,805    1,368,905
Noncontrolling interests                                3,231        3,979
                                                  -----------  -----------
 Total equity                                       1,357,036    1,372,884
                                                  -----------  -----------
                                                  $ 2,820,448  $ 2,824,063
                                                  ===========  ===========



                         WASTE CONNECTIONS, INC.
           CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
            NINE MONTHS ENDED SEPTEMBER 30, 2009 AND 2010
                             (Unaudited)
                       (Dollars in thousands)


                                                      Nine months ended
                                                         September 30,
                                                    ----------------------
                                                       2009        2010
                                                    ----------  ----------

Cash flows from operating activities:
Net income                                          $   87,257  $   99,707
Adjustments to reconcile net income to net cash
 provided by operating activities:
  Loss (gain) on disposal of assets                     (1,037)        572
  Depreciation                                          86,127      99,349
  Amortization of intangibles                            9,351      10,800
  Deferred income taxes, net of acquisitions            28,605      15,925
  Loss on redemption of 2026 Notes, net of
   make-whole payment                                        -       2,255
  Amortization of debt issuance costs                    1,455       1,332
  Amortization of debt discount                          3,513       1,245
  Equity-based compensation                              6,965       8,488
  Interest income on restricted assets                    (369)       (397)
  Closure and post-closure accretion                     1,496       1,323
  Excess tax benefit associated with equity-based
   compensation                                           (696)     (8,935)
  Net change in operating assets and liabilities,
   net of acquisitions                                  19,578      10,634
                                                    ----------  ----------
Net cash provided by operating activities              242,245     242,298
                                                    ----------  ----------

Cash flows from investing activities:
  Payments for acquisitions, net of cash acquired     (422,078)    (17,391)
  Capital expenditures for property and equipment      (84,289)    (86,121)
  Proceeds from disposal of assets                       4,348       5,786
  Increase in restricted assets, net of interest
   income                                               (2,014)     (1,048)
  Increase in other assets                                (887)     (2,034)
                                                    ----------  ----------
Net cash used in investing activities                 (504,920)   (100,808)
                                                    ----------  ----------

Cash flows from financing activities:
  Proceeds from long-term debt                         217,000     331,253
  Principal payments on notes payable and long-term
   debt                                               (175,053)   (384,346)
  Change in book overdraft                                  47        (374)
  Proceeds from option and warrant exercises             4,952      23,244
   Excess tax benefit associated with equity-based
    compensation                                           696       8,935
  Payments for repurchase of common stock              (40,168)   (116,285)
  Debt issuance costs                                      (42)          -
                                                    ----------  ----------
Net cash provided by (used in) financing activities      7,432    (137,573)
                                                    ----------  ----------

Net increase (decrease) in cash and equivalents       (255,243)      3,917
Cash and equivalents at beginning of period            265,264       9,639
                                                    ----------  ----------
Cash and equivalents at end of period               $   10,021  $   13,556
                                                    ==========  ==========



                         ADDITIONAL STATISTICS
           THREE MONTHS ENDED SEPTEMBER 30, 2009 AND 2010
                        (Dollars in thousands)

Internal Growth: The following table reflects revenue growth for operations owned for at least 12 months:

                                        Three months ended
                                        September 30, 2010
                                       --------------------
     Core Price                                2.6%
     Surcharges                                0.3%
     Volume                                    3.2%
     Intermodal, Recycling and Other           2.1%
                                       --------------------
     Total                                     8.2%
                                       --------------------

Uneliminated Revenue Breakdown:

                                  Three months ended    Three months ended
                                  September 30, 2009    September 30, 2010
                                 --------------------  --------------------
Collection                          $235,735    65.2%     $244,936    61.8%
Disposal and Transfer                107,438    29.7%      125,473    31.7%
Intermodal, Recycling and Other       18,613     5.1%       25,885     6.5%
                                 ----------- --------  ----------- --------
Total before inter-company
 elimination                        $361,786   100.0%     $396,294   100.0%

Inter-company elimination           $ 45,796              $ 50,509
                                 -----------           -----------
 Reported Revenue                   $315,990              $345,785
                                 -----------           -----------

Days Sales Outstanding for the three months ended September 30, 2010: 41 (27 net of deferred revenue)


Internalization for the three months ended September 30, 2010: 66%


Other Cash Flow Items:

                                Three months ended    Three months ended
                                September 30, 2009    September 30, 2010
                               --------------------  --------------------
    Cash Interest Paid               $ 6,031               $ 4,189
    Cash Taxes Paid                  $12,240               $14,755

Debt to Book Capitalization as of September 30, 2010: 38%


Share Information for the three months ended September 30, 2010:

    Basic shares outstanding                     77,062,885
    Dilutive effect of options and warrants         487,842
    Dilutive effect of restricted stock             301,842
                                                 ----------
    Diluted shares outstanding                   77,852,569



                         NON-GAAP RECONCILIATION SCHEDULE
                                 (in thousands)

Reconciliation of Adjusted Operating Income before Depreciation and Amortization:

Adjusted operating income before depreciation and amortization, a non-GAAP financial measure, is provided supplementally because it is widely used by investors as a performance and valuation measure in the solid waste industry. Waste Connections defines adjusted operating income before depreciation and amortization as operating income, plus depreciation and amortization expense, plus closure and post-closure accretion expense, plus or minus any gain or loss on disposal of assets. The Company further adjusts this calculation to exclude the effects of items management believes impact the ability to assess the operating performance of our business. This measure is not a substitute for, and should be used in conjunction with, GAAP financial measures. Management uses adjusted operating income before depreciation and amortization as one of the principal measures to evaluate and monitor the ongoing financial performance of the Company's operations. Other companies may calculate adjusted operating income before depreciation and amortization differently.

                                    Three months ended  Three months ended
                                    September 30, 2009  September 30, 2010
                                    ------------------  ------------------
Operating income                    $           64,761  $           75,685
Plus: Depreciation and amortization             34,897              38,057
Plus: Closure and post-closure
 accretion                                         584                 443
Plus/less: Loss (gain) on disposal
 of assets                                         139                 (50)
Adjustments:
  Plus: Acquisition-related
   transaction costs (a)                           897                 782
                                    ------------------  ------------------
Adjusted operating income before
 depreciation and amortization      $          101,278  $          114,917
                                    ------------------  ------------------

As % of revenues                                 32.1%               33.2%


                                    Nine months ended   Nine months ended
                                    September 30, 2009  September 30, 2010
                                    ------------------  ------------------
Operating income                    $          171,814  $          204,642
Plus: Depreciation and amortization             95,478             110,149
Plus: Closure and post-closure
 accretion                                       1,496               1,323
Plus/less: Loss (gain) on disposal
 of assets                                      (1,037)                572
Adjustments:
  Plus: Acquisition-related
   transaction costs (a)                         4,179               1,177
  Plus: Loss on prior corporate
   office lease (b)                              1,621                   -
                                    ------------------  ------------------
Adjusted operating income before
 depreciation and amortization      $          273,551  $          317,863
                                    ------------------  ------------------

As % of revenues                                 31.0%               32.3%


(a) Reflects the addback of acquisition-related costs expensed due to the
    implementation of new accounting guidance for business combinations
    effective January 1, 2009.

(b) Reflects the addback of a loss on the Company's prior corporate office
    lease due to the relocation of the Company's corporate offices.



                  NON-GAAP RECONCILIATION SCHEDULE (continued)
                   (in thousands, except per share amounts)

Reconciliation of Net Income to Adjusted Net Income and Adjusted Net Income per diluted share:

Adjusted net income and adjusted net income per diluted share, both non-GAAP financial measures, are provided supplementally because they are widely used by investors as a valuation measure in the solid waste industry. The Company provides adjusted net income to exclude the effects of items management believes impact the comparability of operating results between periods. Adjusted net income has limitations due to the fact that it may exclude items that have an impact on the Company's financial condition and results of operations. Adjusted net income and adjusted net income per diluted share are not a substitute for, and should be used in conjunction with, GAAP financial measures. Management uses adjusted net income and adjusted net income per diluted share as one of the principal measures to evaluate and monitor ongoing financial performance of the Company's operations. Other companies may calculate adjusted net income and adjusted net income per diluted share differently.

                                  Three months ended    Nine months ended
                                     September 30,        September 30,
                                --------------------  --------------------
                                   2009       2010       2009       2010
                                ---------  ---------  ---------  ---------

Reported net income attributable
 to Waste Connections           $  34,150  $  40,986  $  86,566  $  98,959
Adjustments:
  Loss on extinguishment of
   debt, net of taxes (a)                -          -          -      6,320
  Acquisition-related transaction
   costs, net of taxes (b)             751       485      2,806        730
  Loss on prior corporate office
   lease, net of taxes (c)               -         -      1,008          -
  Loss (gain) on disposal of
   assets, net of taxes (d)             86       (31)      (645)       777
  Impact of deferred tax
   adjustment (e)                       -         -     (1,142)     1,547
                                ---------  ---------  ---------  ---------
Adjusted net income attributable
 to Waste Connections           $  34,987  $  41,440  $  88,593  $ 108,333
                                =========  =========  =========  =========

Diluted earnings per common share
 attributable to Waste Connections
 common stockholders:
  Reported net income           $    0.43  $    0.53  $    1.08  $    1.26
                                =========  =========  =========  =========
  Adjusted net income           $    0.44  $    0.53  $    1.10  $    1.38
                                =========  =========  =========  =========


(a) Reflects the elimination of costs associated with the early redemption
    of outstanding debt.

(b) Reflects the elimination of acquisition-related costs due to the
    implementation of new accounting guidance for business combinations
    effective January 1, 2009.

(c) Reflects the elimination of a loss on the Company's prior corporate
    office lease due to the relocation of the Company's corporate offices.

(d) Reflects the elimination of a loss (gain) on disposal of assets.

(e) Reflects (1) the elimination in 2009 of a benefit to the income tax
    provision primarily from a reduction in the Company's deferred tax
    liabilities, and (2) the elimination in 2010 of an increase to the
    income tax provision associated with an adjustment in the Company's
    deferred tax liabilities primarily resulting from a voter-approved
    increase in Oregon state income tax rates.



                NON-GAAP RECONCILIATION SCHEDULE (continued)
                              (in thousands)

Reconciliation of Free Cash Flow:

Free cash flow, a non-GAAP financial measure, is provided supplementally because it is widely used by investors as a valuation and liquidity measure in the solid waste industry. Waste Connections defines free cash flow as net cash provided by operating activities, plus proceeds from disposal of assets, plus or minus change in book overdraft, plus excess tax benefit associated with equity-based compensation, less capital expenditures for property and equipment and distributions to noncontrolling interests. This measure is not a substitute for, and should be used in conjunction with, GAAP liquidity or financial measures. Management uses free cash flow as one of the principal measures to evaluate and monitor the ongoing financial performance of the Company's operations. Other companies may calculate free cash flow differently.

                                    Three months ended  Three months ended
                                    September 30, 2009  September 30, 2010
                                    ------------------  ------------------
Net cash provided by operating
 activities                         $           91,197  $          102,164
Less: Change in book overdraft                  (2,189)              1,799
Plus: Proceeds from disposal of
 assets                                            219                 861
Plus: Excess tax benefit associated
 with equity-based compensation                    599               2,512
Less: Capital expenditures for
 property and equipment                        (31,596)            (35,626)
                                    ------------------  ------------------
Free cash flow                      $           58,230  $           71,710
                                    ------------------  ------------------

As % of revenues                                 18.4%               20.7%



                                    Nine months ended   Nine months ended
                                    September 30, 2009  September 30, 2010
                                    ------------------  ------------------
Net cash provided by operating
 activities                         $          242,245  $          242,298
Plus/less: Change in book overdraft                 47                (374)
Plus: Proceeds from disposal of
 assets                                          4,348               5,786
Plus: Excess tax benefit associated
 with equity-based compensation                    696               8,935
Less: Capital expenditures for
 property and equipment                        (84,289)            (86,121)
                                    ------------------  ------------------
Free cash flow                      $          163,047  $          170,524
                                    ------------------  ------------------

As % of revenues                                 18.5%               17.3%

Contact Information