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 BURLINGTON, Ont., Oct. 13 /PRNewswire/ -- Laidlaw Inc. (NYSE: LDW.B) has reported income from operations(A) for the fourth quarter ended August 31 of $17,536,000 compared with $39,895,000 for the same three- month period in 1992.
 Income from continuing operations (after tax), before special and non-recurring charges and unusual items was $3,814,000 ($0.01 per share) compared with $24,882,000 ($0.09 per share) for the 1992 period.
 A special and non-recurring charge of $105,000,000 ($95,000,000 or $0.34 per share after tax) and unusual items of $243,760,000 ($0.88 per share) contributed to a net loss for the quarter of $334,946,000 ($1.21 per share) compared with net income of $24,882,000 ($0.09 per share). There were no special or unusual items in the 1992 period. An average of 277,188,000 shares was outstanding in both periods.
 The special and non-recurring charge was occasioned by an increase in what the company deemed appropriate for landfill closure and post- closure reserves, recognition of reduced values of certain Canadian hazardous waste facilities and the postponement of a major U.S. landfill project due to the acquisition of alternate cost-effective landfill capacity.
 The unusual items are composed of writedowns in the company's investment in ADT Limited and in Attwoods plc. As a result of the dilution in our position in ADT due to not participating in its recent refinancing and the recognition of the loss by Attwoods on the sale of its recycling division, the company has reassessed the carrying value of these investments.
 Consolidated revenue for the quarter increased 10.2 percent to $467,545,000 from the $424,396,000 reported one year ago.
 For the year ended August 31, 1993, income from operations(A) was $203,686,000 compared with $237,696,000 for 1992.
 Income from continuing operations (after tax), before special and non-recurring, unusual and extraordinary items was $122,138,000 ($0.44 per share) compared with $138,492,000 ($0.52 per share) for the 1992 year.
 The 1993 special and non-recurring charges in the third and fourth quarters of $225,524,000 ($169,950,000 or $0.61 per share after tax) and the unusual items of $243,760,000 ($0.88 per share), resulted in a net loss for the year of $291,572,000 ($1.05 per share) compared with net income of $132,392,000 ($0.50 per share) after an extraordinary item of $6,100,000 ($0.02 per share after tax). There was an average of 4.2 percent more shares outstanding for the year.
 Consolidated revenue for the year increased 3.5 percent to $1,993,259,000 compared with $1,925,617,000.
 The board of directors has declared a quarterly dividend of $0.04 (Canadian) per Class A and Class B Common Share and $0.25 (Canadian) per Series G First Preference Share. All dividends are payable Nov. 15 to shareholders registered at the close of business on Nov. 1, 1993. Dividends are converted to U.S. dollars for payment to U.S. shareholders.
 Mr. Peter N.T. Widdrington, chairman of the board, has announced the appointment of Mr. James R. Bullock as president and CEO. A Laidlaw director since 1991, Mr. Bullock for the last six years has been president and CEO of the Cadillac Fairview Corporation Ltd., a major, investor-owned property development company, operating in Canada and the United States. He has been associated with the corporation since 1977. He is a director of Telemedia Inc. and the Canadian Institute of Public Real Estate Companies.
 He is a member of the 1993 campaign cabinet of the United Way of Metro Toronto and a director of the Princess Margaret Hospital Trust in Toronto. He served as a member of the board of governors of Ryerson Polytechnical Institute beginning in 1983 and was its chairman from 1987 to 1989. He is also a trustee of the Ontario Jockey Club. Mr. Bullock was a member of the Urban Development and Commerce Task Force of the Ontario Round Table on Environment and Economy.
 Commenting on Laidlaw's results, Mr. Bullock said that "Price competition, reduced waste volumes, the decline in the value of the Canadian dollar, cost overruns on remedial contracts and regulatory issues are largely responsible for the disappointing operating results in the company's fourth quarter. On the other hand, Laidlaw acquired 41 companies during the year with annualized revenues of $264,000,000, half of which are generated by the Passenger Services Group which continued to perform satisfactorily and surpassed its profit objective.
 The significant provisions we've taken with respect to our operating asset base and the investments in ADT Limited and Attwoods plc. position the company to focus on the strategic development and meet the challenges of its three core businesses in the North American marketplace."
 Laidlaw Inc. serves municipalities, senior governments, industry and commerce through the provision of environmental and passenger services. The company operates throughout Canada and the United States, in Mexico, Italy, Norway and Belgium.
 NOTES: (A) Before interest expense, interest dividend and other income, equity in earnings of associated companies, special and non- recurring charges, unusual and extraordinary items
 Consolidated Statements of Income
 (U.S. $000's omitted except per share amounts, unaudited)
 Periods ended Aug. 31 Three Months Year
 1993 1992 1993 1992
 Solid waste services $197,668 $204,358 $756,041 $804,231
 Hazardous waste services 139,270 121,390 511,554 458,150
 Passenger services 130,607 98,648 725,664 663,236
 Total revenue 467,545 424,396 1,993,259 1,925,617
 Operating expenses 355,303 297,336 1,394,346 1,300,178
 Selling, general and
 administrative expenses 45,110 36,389 158,247 152,226
 Depreciation and
 amortization 49,596 50,776 236,980 235,517
 Special and non-recurring
 charges 105,000 -- 225,524 --
 Income (loss) from
 operations (87,464) 39,895 (21,838) 237,696
 Interest expense (27,368) (27,141) (105,655) (122,114)
 Interest, dividend and
 other income 4,545 5,477 13,787 13,597
 Equity in earnings of
 associated companies 9,094 13,781 39,894 39,713
 Unusual items (243,760) -- (243,760) --
 Income (loss) before
 income taxes (344,953) 32,012 (317,572) 168,892
 Income taxes 10,007 (7,130) 26,000 (30,400)
 Income (loss) before
 extraordinary items (334,946) 24,882 (291,572) 138,492
 Extraordinary item -- -- -- (6,100)
 Net income (loss) for
 the period ($334,946) $24,882 ($291,572) $132,392
 Earnings (loss) per share
 - Before special and non-
 recurring charges and
 unusual items $0.01 $0.09 $0.44 $0.52
 - Special and non-
 recurring charges (0.34) -- (0.61) --
 - Unusual items (0.88) -- (0.88) --
 (1.21) 0.09 (1.05) 0.52
 - Extraordinary item -- -- -- (0.02)
 - Net Income (loss) ($1.21) $0.09 ($1.05) $0.50
 Additional Information
 Income from operations
 (before special and
 non-recurring charges)
 Solid waste services 12,694 23,052 60,590 83,258
 Hazardous waste services 8,445 20,779 52,348 66,611
 Passenger services (3,603) (3,936) 90,748 87,827
 Total 17,536 39,895 203,686 237,696
 Operating Margins
 (before special and
 non-recurring charges)
 Solid waste services 6.4 pct 11.3 pct 8.0 pct 10.4 pct
 Hazardous waste services 6.1 pct 17.1 pct 10.2 pct 14.5 pct
 Passenger services (2.8) pct (4.0) pct 12.5 pct 13.2 pct
 Total 3.8 pct 9.4 pct 10.2 pct 12.3 pct
 Tax rate (before special
 and non-recurring charges) 19.5 pct 18.0 pct
 Debt/Equity - August 31/92 0.64:1
 - August 31/93 0.89:1
 -0- 10/13/93
 /CONTACT: Paul Van Damme, vice president/controller, or TAG Watson, vice president-communications, 905-336-1800, both of Laidlaw Inc./

CO: Laidlaw Inc. ST: Ontario IN: ENV SU: ERN PER

TM -- NY119 -- 1948 10/13/93 20:19 EDT
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Publication:PR Newswire
Date:Oct 13, 1993

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