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8-K - FORM 8-K - Waste Connections US, Inc.c07070e8vk.htm
EX-99.2 - EXHIBIT 99.2 - Waste Connections US, Inc.c07070exv99w2.htm
Exhibit 99.1
(WASTE CONNECTIONS INC. LOGO )
WASTE CONNECTIONS REPORTS THIRD QUARTER 2010 RESULTS
    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
FOLSOM, CA, October 19, 2010 - 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

 

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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 –
CONTACT:

Worthing Jackman / (916) 608-8266
worthingj@wasteconnections.com

 

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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  
 
                       

 

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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  
 
           

 

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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  
 
           

 

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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  

 

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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.

 

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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.

 

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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 %

 

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