Browning-Ferris reports first quarter results; Net income adversely affected by recycling results; Plans to reduce future recycling volatility announced; Double digit revenue growth.HOUSTON--(BUSINESS WIRE)--Jan. 30, 1996--Browning-Ferris Industries, Inc. (NYSE-BFI) today reported consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: net income for the quarter ended December December: see month. 31, 1995, of $83,010,000, or 42 cents a share, on consolidated revenues of $1.43 billion. These results compare with net income for the same quarter ended December 31, 1994, of $89,570,000, or 45 cents a share, on revenues of $1.29 billion. The quarter's results showed the impact of a 28 percent decline in the average value of recycling recycling, the process of recovering and reusing waste products—from household use, manufacturing, agriculture, and business—and thereby reducing their burden on the environment. commodities in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , compared with the prior year's quarter, and a 47 percent decline when compared with the immediately previous quarter ended September September: see month. 30, 1995. These first quarter results also showed the need to implement a timely mechanism to adjust recycling customer pricing fast enough to preserve acceptable margins when commodity values change. An effort is currently underway to restructure recycling customer pricing to allow for a more timely adjustment of customer fees as commodity prices move up or down, thus lessening recycling earnings volatility Volatility 1. A statistical measure of the tendency of a market or security to rise or fall sharply within a period of time. 2. A variable in option pricing formulas that denotes the extent to which the return of the underlying asset will fluctuate between now and the . Bruce Bruce, Scottish royal family descended from an 11th-century Norman duke, Robert de Brus. He aided William I in his conquest of England (1066) and was given lands in England. Ranck, President and Chief Executive Officer, said: "While we remain committed to the recycling business, we learned a valuable lesson over the past several months regarding the volatility of the recycling business. During the next two quarters, we will put in place an enhanced response mechanism to limit our exposure to commodity price changes. Continuing low commodity prices, coupled with the impact on our business related to rough weather in many parts of the country during January January: see month. , will make BFI's second quarter probably the most challenging of the fiscal year. "We were encouraged by the results in other business types," he added. "North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. collection margins showed improvement over the prior year's quarter. Pricing improvement continued in the collection and landfill businesses. Our medical waste business produced the highest level of earnings ever." Fiscal 1996's consolidated first quarter's revenue growth when compared with the first quarter of the prior year, was 10.7 percent. First quarter consolidated revenue growth from price, acquisitions, volume, and foreign currency value changes was (2.3) percent, 11.3 percent, O percent and 1.7 percent, respectively. The company completed 31 acquisitions during the quarter with annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. revenues of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $123 million. North American revenues increased by 7.1 percent over the prior year's quarter, mainly due to acquisitions. North American first quarter collection revenues were up 8.9 percent over the prior year, due to acquisitions and, to a lesser extent, improved pricing. Recycling revenues were up 6.3 percent as strong volume and acquisition growth more than offset the sharp decline in commodity prices. Medical waste revenues were up 14.2 percent over the prior year due to acquisitions and volume growth. Landfill volumes declined when compared with the same period of the prior year. Pricing improved in the disposal/transfer business. International revenues were up 21.6 percent over the prior year's quarter due primarily to growth from acquisitions and foreign currency value changes. International's gross profit margin Gross profit margin Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. gross profit margin A measure calculated by dividing gross profit by net sales. for the quarter was impacted by sharp declines in recycling commodity prices in Germany Germany (jûr`mənē), Ger. Deutschland, officially Federal Republic of Germany, republic (2005 est. pop. 82,431,000), 137,699 sq mi (356,733 sq km). . Selling, general and administrative expenses as a percentage of revenue decreased from 14.8 percent of revenue in the first quarter of 1995 to 14.5 percent in the current quarter. Net interest expense increased over the same quarter prior year, due for the most part to the financing activities related to acquisitions. Browning-Ferris Industries Browning-Ferris Industries, or "BFI", is a licensed trademark of Allied Waste Industries, a North America waste collection company. Many local units of Allied Waste are still known as BFI in the markets they serve. , Inc., a $6 billion international waste services company, provides collection, recycling and disposal of residential, commercial, industrial and medical waste throughout North America and in 13 countries.
BROWNING-FERRIS INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
(Unaudited)
The following are the consolidated operating results of Browning-Ferris
Industries, Inc. and subsidiaries for the three months ended
December 31, 1995 compared with the three months ended
December 31, 1994.
_______________________________________________________________________
(Expressed in Thousands)
Three Months Ended
December 31,
%
1995 1994 Change
_______________________________________________________________________
Revenues $1,430,781 $1,292,787 10.7%
Cost of operations 1,048,105 924,970 13.3%
----------------------
Gross profit 382,676 367,817 4.0%
Selling, general &
administrative expense 208,514 190,506 9.5%
----------------------
Income from operations 174,162 177,311 -1.8%
Interest, net 40,977 26,432 55.0%
Equity in earnings of
unconsolidated affiliates (12,110) (11,646) 4.0%
----------------------
Income before income taxes
and minority interest 145,295 162,525 -10.6%
Income taxes 58,118 65,010 -10.6%
Minority interest in income
of consolidated subsidiaries 4,167 7,945 -47.6%
----------------------
Net income $ 83,010 $ 89,570 -7.3%
======================
Number of common and common
equivalent shares used in
computing earnings per share 199,878 197,809
======================
Earnings per common and
common equivalent share $ 0.415 $ 0.453
======================
CONTACT: Browning Ferris Industries. Brett n. 1. Same as Britzska. Frazier Frazier, Joseph Known as "Joe." Born 1944. American prizefighter who won the Olympic heavyweight title (1964) and held the world professional heavyweight title from 1970 to 1973. , analyst contact, 713/870-7161, or Peter Block, media contact, 713/870-7854, |
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