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8-K - FORM 8-K - Waste Connections US, Inc.d383490d8k.htm

Exhibit 99.1

 

LOGO

WASTE CONNECTIONS REPORTS SECOND QUARTER 2012 RESULTS

 

   

Revenue of $410.7 million, up 5.3%

 

   

GAAP EPS and adjusted EPS* of $0.34 and $0.36, respectively

 

   

YTD net cash provided by operating activities of $204.9 million

 

   

YTD adjusted free cash flow* of $148.3 million, or 18.8% of revenue

 

   

Completes $30 million revenue new market acquisition in Minnesota on July 1st

 

   

Resumes share repurchase program

THE WOODLANDS, TX, July 23, 2012 - Waste Connections, Inc. (NYSE: WCN) today announced its results for the second quarter of 2012. Revenue totaled $410.7 million, a 5.3% increase over revenue of $390.2 million in the year ago period. Operating income was $81.7 million compared to $84.8 million in the second quarter of 2011. Operating income in the current year period included approximately $3.4 million ($2.1 million net of taxes) associated with costs incurred in connection with the relocation of our corporate headquarters from California to Texas, and acquisition-related transaction costs. Net income attributable to Waste Connections in the quarter was $42.4 million, or $0.34 per share on a diluted basis of 124.0 million shares. In the year ago period, the Company reported net income attributable to Waste Connections of $44.4 million, or $0.39 per share on a diluted basis of 114.3 million shares.

Adjusted net income attributable to Waste Connections in the quarter was $44.4 million*, or $0.36 per share*, adjusting primarily for the items noted above. Adjusted net income attributable to Waste Connections in the prior year period was $44.8 million*, or $0.39 per share*, adjusting primarily for acquisition-related transaction costs.

“The first half of 2012 played out about as expected with revenue, adjusted operating income before depreciation and amortization*, and adjusted free cash flow* at or above our expectations. However, the tepid economy and potential near-term decreases in recycled commodity values could provide additional headwinds in the second half of the year,” said Ronald J. Mittelstaedt, Chairman and Chief Executive Officer. “We are pleased to announce the acquisition of SKB Environmental, Inc., a leading provider of solid and industrial waste transfer and disposal services primarily in Minnesota’s Twin Cities region, with annual revenue of approximately $30 million. We believe SKB provides an attractive platform for additional acquisitions in this new market.”

Mr. Mittelstaedt added, “Although the amount of potential acquisition revenue under active dialogue remains high, our disciplined approach to market selection and valuation remains unchanged. While we expect the pace of acquisition activity could remain strong over the next 18-24 months, the strength of our free cash flow* and balance sheet enables us to fund our growth strategy and increase the return of capital to stockholders. As such, we have resumed our share repurchase program targeting to buyback between four and five percent of outstanding shares annually.”

For the six months ended June 30, 2012, revenue was $787.2 million, a 9.1% increase over revenue of $721.7 million in the year ago period. Operating income was $146.8 million compared to $153.4 million for the same period in 2011. Operating income in the current year period included approximately $10.5 million ($7.6 million net of taxes) associated with costs incurred in connection with the relocation of our corporate headquarters from California to Texas, acquisition-related transaction costs, and one-time equity compensation expense related to awards made at the time of the modification of our named executive officers’ employment contracts.

 

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


Net income attributable to Waste Connections for the six months ended June 30, 2012, was $73.7 million, or $0.61 per share on a diluted basis of 120.0 million shares. In the year ago period, the Company reported net income attributable to Waste Connections of $81.0 million, or $0.71 per share on a diluted basis of 114.4 million shares. Adjusted net income attributable to Waste Connections for the six months ended June 30, 2012, was $81.6 million*, or $0.68 per share*, compared to $81.7 million*, or $0.71 per share*, in the year ago period.

Waste Connections, Inc. is an integrated solid waste services company that provides solid waste collection, transfer, disposal and recycling services in mostly exclusive and secondary markets. The Company serves more than two million residential, commercial and industrial customers from a network of operations in 30 states. The Company also provides intermodal services for the movement of cargo and solid waste containers in the Pacific Northwest. Waste Connections, Inc. was founded in September 1997 and is headquartered in The Woodlands, Texas.

Waste Connections will be hosting a conference call related to second quarter earnings and third quarter outlook on July 24th 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 website at www.wasteconnections.com. A playback of the call will be available at both of these websites.

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 website or through contacting us directly at (832) 442-2200.

 

* 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 revenues, adjusted operating income before depreciation and amortization, and adjusted free cash flow; expected pricing growth, waste volumes and recycled commodity prices; expected levels of acquisition activity in the industry and the drivers of such activity; the Company’s anticipated acquisition activity and ability to finance such activity; the Company’s focus on exclusive and secondary markets; the Company’s deployment of capital; the amount and timing of purchases under the Company’s stock repurchase program; and the impact of the relocation of the Company’s corporate headquarters from Folsom, California to The Woodlands, Texas. 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. 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) competition for acquisition candidates, consolidation within the waste industry and economic and market conditions may limit our ability to grow through acquisitions; (4) we may be unable to compete effectively with larger and better capitalized companies, companies with lower return expectations, and governmental service providers; (5) we may lose contracts through competitive bidding, early termination or governmental action; (6) price increases may not be adequate to offset the impact of increased costs or may cause us to lose volume; (7) economic downturns adversely affect operating results; (8) our results are vulnerable to economic conditions and seasonal factors affecting the regions in which we operate; (9) 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; (10) increases in the price of fuel may adversely affect our business and reduce our operating margins; (11) increases in labor and disposal and related transportation costs could impact our financial results; (12) efforts by labor unions could divert management attention and adversely affect operating results; (13) we could face significant withdrawal liability if we withdraw from participation in one or more underfunded multiemployer pension plans in which we participate; (14) increases in insurance costs and the amount that we self-insure for various risks could reduce our operating margins and reported earnings; (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 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) pending or future litigation or governmental proceedings could result in material adverse consequences, including judgments or settlements; and (27) if we are not able to develop and protect intellectual property, or if a competitor develops or obtains exclusive rights to a breakthrough technology, our financial results may suffer. 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 / (832) 442-2266    Mary Anne Whitney / (832) 442-2253
worthingj@wasteconnections.com    maryannew@wasteconnections.com

 

- 2 -


WASTE CONNECTIONS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

THREE AND SIX MONTHS ENDED JUNE 30, 2011 AND 2012

(Unaudited)

(in thousands, except share and per share amounts)

 

     Three months ended
June 30,
    Six months ended
June 30,
 
     2011     2012     2011     2012  

Revenues

   $ 390,184      $ 410,731      $ 721,652      $ 787,161   

Operating expenses:

        

Cost of operations

     221,872        238,427        408,938        455,107   

Selling, general and administrative

     41,169        44,747        80,007        95,922   

Depreciation

     36,939        39,846        69,975        77,018   

Amortization of intangibles

     5,673        6,217        9,650        11,849   

Loss (gain) on disposal of assets

     (267     (243     (292     472   
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     84,798        81,737        153,374        146,793   

Interest expense

     (11,087     (11,829     (19,920     (24,114

Interest income

     143        165        276        297   

Other income (expense), net

     (245     (145     149        541   
  

 

 

   

 

 

   

 

 

   

 

 

 

Income before income tax provision

     73,609        69,928        133,879        123,517   

Income tax provision

     (29,004     (27,413     (52,481     (49,564
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income

     44,605        42,515        81,398        73,953   

Less: net income attributable to

    noncontrolling interests

     (192     (100     (446     (234
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income attributable to Waste Connections

   $ 44,413      $ 42,415      $ 80,952      $ 73,719   
  

 

 

   

 

 

   

 

 

   

 

 

 

Earnings per common share attributable to Waste Connections’ common stockholders:

        

Basic

   $ 0.39      $ 0.34      $ 0.71      $ 0.62   
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted

   $ 0.39      $ 0.34      $ 0.71      $ 0.61   
  

 

 

   

 

 

   

 

 

   

 

 

 

Shares used in the per share calculations:

        

Basic

     113,509,668        123,466,890        113,514,439        119,327,512   
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted

     114,308,710        124,027,617        114,354,979        119,952,039   
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash dividends per common share

   $ 0.075      $ 0.09      $ 0.15      $ 0.18   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

- 3 -


WASTE CONNECTIONS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(in thousands, except share and per share amounts)

 

     December 31,
2011
    June 30,
2012
 

ASSETS

    

Current assets:

    

Cash and equivalents

   $ 12,643      $ 136,145   

Accounts receivable, net of allowance for doubtful accounts of $6,617 and $6,557 at December 31, 2011 and June 30, 2012, respectively

     176,277        185,460   

Deferred income taxes

     20,630        17,975   

Prepaid expenses and other current assets

     39,708        31,151   
  

 

 

   

 

 

 

Total current assets

     249,258        370,731   

Property and equipment, net

     1,450,469        1,460,756   

Goodwill

     1,116,888        1,182,101   

Intangible assets, net

     449,581        499,787   

Restricted assets

     30,544        31,332   

Other assets, net

     31,265        35,049   
  

 

 

   

 

 

 
   $ 3,328,005      $ 3,579,756   
  

 

 

   

 

 

 

LIABILITIES AND EQUITY

    

Current liabilities:

    

Accounts payable

   $ 95,097      $ 87,476   

Book overdraft

     12,169        12,306   

Accrued liabilities

     106,243        114,218   

Deferred revenue

     64,694        70,222   

Current portion of long-term debt and notes payable

     5,899        4,581   
  

 

 

   

 

 

 

Total current liabilities

     284,102        288,803   

Long-term debt and notes payable

     1,172,758        977,524   

Other long-term liabilities

     74,324        84,449   

Deferred income taxes

     397,134        405,646   
  

 

 

   

 

 

 

Total liabilities

     1,928,318        1,756,422   

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; 250,000,000 shares authorized; 110,907,782 and 123,204,543 shares issued and outstanding at December 31, 2011 and June 30, 2012, respectively

     1,109        1,232   

Additional paid-in capital

     408,721        781,894   

Retained earnings

     988,560        1,041,157   

Accumulated other comprehensive loss

     (3,480     (5,866
  

 

 

   

 

 

 

Total Waste Connections’ equity

     1,394,910        1,818,417   

Noncontrolling interest in subsidiaries

     4,777        4,917   
  

 

 

   

 

 

 

Total equity

     1,399,687        1,823,334   
  

 

 

   

 

 

 
   $ 3,328,005      $ 3,579,756   
  

 

 

   

 

 

 

 

- 4 -


WASTE CONNECTIONS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

SIX MONTHS ENDED JUNE 30, 2011 AND 2012

(Unaudited)

(Dollars in thousands)

 

     Six months ended June 30,  
     2011     2012  

Cash flows from operating activities:

    

Net income

   $ 81,398      $ 73,953   

Adjustments to reconcile net income to net cash provided by operating activities:

    

Loss (gain) on disposal of assets

     (292     472   

Depreciation

     69,975        77,018   

Amortization of intangibles

     9,650        11,849   

Deferred income taxes, net of acquisitions

     23,106        12,629   

Amortization of debt issuance costs

     540        831   

Equity-based compensation

     5,962        10,821   

Interest income on restricted assets

     (245     (212

Closure and post-closure accretion

     967        1,225   

Excess tax benefit associated with equity-based compensation

     (2,829     (3,283

Net change in operating assets and liabilities, net of acquisitions

     1,744        19,637   
  

 

 

   

 

 

 

Net cash provided by operating activities

     189,976        204,940   
  

 

 

   

 

 

 

Cash flows from investing activities:

    

Payments for acquisitions, net of cash acquired

     (215,962     (150,222

Capital expenditures for property and equipment

     (46,562     (67,445

Proceeds from disposal of assets

     1,862        1,497   

Decrease (increase) in restricted assets, net of interest income

     2,501        (577

Other

     (2,764     (5,666
  

 

 

   

 

 

 

Net cash used in investing activities

     (260,925     (222,413
  

 

 

   

 

 

 

Cash flows from financing activities:

    

Proceeds from long-term debt

     427,500        334,000   

Principal payments on notes payable and long-term debt

     (286,202     (530,551

Payment of contingent consideration

     (100     (3,849

Change in book overdraft

     (1,918     136   

Proceeds from option and warrant exercises

     2,776        851   

Excess tax benefit associated with equity-based compensation

     2,829        3,283   

Payments for repurchase of common stock

     (42,381     (5,233

Payments for cash dividends

     (17,041     (21,122

Tax withholdings related to net share settlements of restricted stock units

     (5,271     (6,010

Distributions to noncontrolling interests

     (675     (94

Proceeds from common stock offering, net

     —          369,584   

Debt issuance costs

     (1,490     (20
  

 

 

   

 

 

 

Net cash provided by financing activities

     78,027        140,975   
  

 

 

   

 

 

 

Net increase in cash and equivalents

     7,078        123,502   

Cash and equivalents at beginning of period

     9,873        12,643   
  

 

 

   

 

 

 

Cash and equivalents at end of period

   $ 16,951      $ 136,145   
  

 

 

   

 

 

 

 

- 5 -


ADDITIONAL STATISTICS

THREE AND SIX MONTHS ENDED JUNE 30, 2012

(Dollars in thousands)

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

 

     Three months ended
June 30, 2012
 

Core Price

     3.0

Surcharges

     0.0

Volume

     (2.2 %) 

Intermodal, Recycling and Other

     (1.0 %) 
  

 

 

 

Total

     (0.2 %) 
  

 

 

 

Revenue Breakdown:

 

     Three months ended
June 30, 2012
    Six months ended
June 30, 2012
 

Collection

   $ 299,666        63.6   $ 576,754        63.9

Disposal and Transfer

     135,922        28.9     257,917        28.6

Intermodal, Recycling and Other

     35,152        7.5     67,725        7.5
  

 

 

   

 

 

   

 

 

   

 

 

 

Total before inter-company elimination

     470,740        100.0     902,396        100.0

Inter-company elimination

     (60,009       (115,235  
  

 

 

     

 

 

   

Reported Revenue

   $ 410,731        $ 787,161     
  

 

 

     

 

 

   

Days Sales Outstanding for the three months ended June 30, 2012: 41 (26 net of deferred revenue)

Internalization for the three months ended June 30, 2012: 56%

Other Cash Flow Items:

 

     Three months ended
June 30, 2012
     Six months ended
June 30, 2012
 

Cash Interest Paid

   $ 18,150       $ 22,612   

Cash Taxes Paid

   $ 13,366       $ 13,701   

Debt to Book Capitalization as of June 30, 2012: 35%

Share Information for the three months ended June 30, 2012:

 

Basic shares outstanding

     123,466,890   

Dilutive effect of options and warrants

     315,329   

Dilutive effect of restricted stock

     245,398   
  

 

 

 

Diluted shares outstanding

     124,027,617   

 

- 6 -


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
June 30, 2011
    Three months ended
June 30, 2012
 

Operating income

   $ 84,798      $ 81,737   

Plus: Depreciation and amortization

     42,612        46,063   

Plus: Closure and post-closure accretion

     484        612   

Plus/less: Loss (gain) on disposal of assets

     (267     (243

Adjustments:

    

Plus: Acquisition-related transaction costs (a)

     423        382   

Plus: Corporate relocation expenses (b)

     —          2,990   
  

 

 

   

 

 

 

Adjusted operating income before depreciation and amortization

   $ 128,050      $ 131,541   
  

 

 

   

 

 

 

As % of revenues

     32.8     32.0

 

     Six months ended
June 30, 2011
    Six months ended
June 30, 2012
 

Operating income

   $ 153,374      $ 146,793   

Plus: Depreciation and amortization

     79,625        88,867   

Plus: Closure and post-closure accretion

     967        1,225   

Plus/less: Loss (gain) on disposal of assets

     (292     472   

Adjustments:

    

Plus: Acquisition-related transaction costs (a)

     1,094        2,159   

Plus: Corporate relocation expenses (b)

     —          4,717   

Plus: NEO one-time equity grants (c)

     —          3,585   
  

 

 

   

 

 

 

Adjusted operating income before depreciation and amortization

   $ 234,768      $ 247,818   
  

 

 

   

 

 

 

As % of revenues

     32.5     31.5

 

(a) Reflects the addback of acquisition-related costs.
(b) Reflects the addback of costs associated with the relocation of the Company’s corporate headquarters from California to Texas.
(c) Reflects the addback of one-time equity compensation expense incurred at the time the Company’s NEOs’ employment contracts were modified.

 

- 7 -


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. Waste Connections 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
June 30,
    Six months ended
June 30,
 
     2011     2012     2011     2012  

Reported net income attributable to Waste Connections

   $ 44,413      $ 42,415      $ 80,952      $ 73,719   

Adjustments:

        

Acquisition-related transaction costs, net of taxes (a)

     507        237        923        1,338   

Loss (gain) on disposal of assets, net of taxes (b)

     (166     (151     (181     292   

Corporate relocation expenses, net of taxes (c)

     —          1,854        —          2,924   

NEO one-time equity grants, net of taxes (d)

     —          —          —          3,315   
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted net income attributable to Waste Connections

   $ 44,754      $ 44,355      $ 81,694      $ 81,588   
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted earnings per common share attributable to Waste Connections common stockholders:

        

Reported net income

   $ 0.39      $ 0.34      $ 0.71      $ 0.61   
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted net income

   $ 0.39      $ 0.36      $ 0.71      $ 0.68   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

(a) Reflects the elimination of acquisition-related costs.
(b) Reflects the elimination of a loss (gain) on disposal of assets.
(c) Reflects the addback of costs associated with the relocation of the Company’s corporate headquarters from California to Texas.
(d) Reflects the addback of one-time equity compensation expense incurred at the time our NEOs’ employment contracts were modified.

 

- 8 -


NON-GAAP RECONCILIATION SCHEDULE (continued)

(in thousands)

 

Reconciliation of Adjusted Free Cash Flow:

Adjusted 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 adjusted 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. The Company further adjusts this calculation to exclude the effects of items management believes impact the ability to assess the operating performance of its business. This measure is not a substitute for, and should be used in conjunction with, GAAP liquidity or financial measures. Management uses adjusted 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 adjusted free cash flow differently.

 

     Three months ended
June 30, 2011
    Three months ended
June 30, 2012
 

Net cash provided by operating activities

   $ 101,597      $ 104,359   

Plus/less: Change in book overdraft

     (1,903     (184

Plus: Proceeds from disposal of assets

     1,074        744   

Plus: Excess tax benefit associated with equity-based compensation

     991        278   

Less: Capital expenditures for property and equipment

     (27,034     (39,492

Less: Distributions to noncontrolling interests

     —          —     

Adjustment:

    

Corporate office relocation, net of taxes (a)

     —          4,240   
  

 

 

   

 

 

 

Adjusted free cash flow

   $ 74,725      $ 69,945   
  

 

 

   

 

 

 

As % of revenues

     19.2     17.0
     Six months ended
June 30, 2011
    Six months ended
June 30, 2012
 

Net cash provided by operating activities

   $ 189,976      $ 204,940   

Plus: Change in book overdraft

     (1,918     136   

Plus: Proceeds from disposal of assets

     1,862        1,497   

Plus: Excess tax benefit associated with equity-based compensation

     2,829        3,283   

Less: Capital expenditures for property and equipment

     (46,562     (67,445

Less: Distributions to noncontrolling interests

     (675     (94

Adjustment:

    

Corporate office relocation, net of taxes (a)

     —          6,024   
  

 

 

   

 

 

 

Adjusted free cash flow

   $ 145,512      $ 148,341   
  

 

 

   

 

 

 

As % of revenues

     20.2     18.8

 

(a) Reflects the addback of outlays associated with the relocation of the Company’s corporate headquarters from California to Texas.

 

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