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JULY 29, 2008 - COVANTA HOLDING CORPORATION REPORTS 2008 SECOND QUARTER RESULTS; REAFFIRMS 2008 GUIDANCE
FAIRFIELD, NJ, July 29, 2008 – Covanta Holding Corporation (NYSE:CVA) (“Covanta” or the “Company”) reported financial results today for the three months ended June 30, 2008. Diluted earnings per share rose by 21% to $0.29 in the second quarter of 2008, up from $0.24 in the second quarter of 2007.
Second Quarter Results
For the three months ended June 30, 2008, consolidated operating revenues grew 19% to $423 million, up from $355 million in the prior year comparative period. Domestic segment revenue grew 17% to $351 million, driven primarily by the contribution of revenue from domestic acquisitions completed in 2007, contractual escalations in service fees, and higher prices for electricity and recycled metal. Domestic plant operating expenses increased by 15%, primarily due to the incremental expenses associated with businesses acquired in 2007 and escalating fuel and material costs. International segment revenue increased by 33% to $69 million, driven primarily by increased electricity sales at two facilities located in India. International plant operating expenses increased by 38%, primarily due to higher fuel costs at the same two facilities.
Cash Flow Provided by Operating Activities (“Operating Cash Flow”) was $111 million in the second quarter. Adjusted EBITDA was $162 million.
Anthony Orlando, President and Chief Executive Officer of Covanta, stated that “Facility production was solid and energy markets continue to move in our favor. We turned in a good second quarter and anticipate delivering strong full year results near the high end of our published guidance ranges. I'm also optimistic about our long-term prospects. We are effectively managing contract transitions and capitalizing on global growth opportunities which are being presented with increasing frequency in light of the sharp rise in energy prices.”
Year-to-Date Results
For the six months ended June 30, 2008, total Company operating revenues rose 18% to $812 million. Operating Cash Flow was $160 million for the year-to-date period. Adjusted EBITDA was $268 million.
2008 Guidance
The Company is reaffirming its guidance for 2008 for the following key metrics:
- Adjusted EBITDA of $550 million to $575 million;
- Diluted earnings per share of $0.90 to $1.00; and
- Operating Cash Flow of $380 million to $420 million.
Conference Call Information
Covanta will host a conference call at 8:30 am (Eastern) on Wednesday, July 30, 2008 to discuss its results for the three and six months ended June 30, 2008. To participate, please dial 877-604-9675 approximately 10 minutes prior to the scheduled start of the call. If you are calling from outside of the United States, please dial 719-325-4873. The conference call will also be web cast live on the Investor Relations section of the Covanta website at www.covantaholding.com.
A replay of the conference call will be available from 11:30 am (Eastern) on Wednesday, July 30, 2008 through midnight (Eastern) on Thursday, August 7, 2008. To access the replay, please dial 888-203-1112 or 719-457-0820 and use the replay pass code: 9091411. The web cast will also be archived on www.covantaholding.com.
About Covanta
Covanta Holding Corporation (NYSE: CVA), is an internationally recognized owner and operator of large-scale Energy-from-Waste and renewable energy projects. A recipient of the Energy Innovator Award from the U.S. Department of Energy's Office of Energy Efficiency and Renewable Energy, Covanta’s 38 Energy-from-Waste facilities provide communities with an environmentally sound solution to their solid waste disposal needs by using that municipal solid waste to generate clean, renewable energy. Annually, Covanta's modern Energy-from-Waste facilities safely and securely convert more than16 million tons of waste into more than 8 million megawatt hours of clean renewable electricity and create 10 billion pounds of steam that are sold to a variety of industries. For more information, visit www.covantaholding.com.
Cautionary Note Regarding Forward-Looking Statements
Certain statements in this press release may constitute "forward-looking" statements as defined in Section 27A of the Securities Act of 1933 (the "Securities Act"), Section 21E of the Securities Exchange Act of 1934 (the "Exchange Act"), the Private Securities Litigation Reform Act of 1995 (the "PSLRA") or in releases made by the Securities and Exchange Commission (“SEC”), all as may be amended from time to time. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of Covanta and its subsidiaries, or industry results, to differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements. Statements that are not historical fact are forward-looking statements. Forward-looking statements can be identified by, among other things, the use of forward-looking language, such as the words "plan," "believe," "expect," "anticipate," "intend," "estimate," "project," "may," "will," "would," "could," "should," "seeks," or "scheduled to," or other similar words, or the negative of these terms or other variations of these terms or comparable language, or by discussion of strategy or intentions. These cautionary statements are being made pursuant to the Securities Act, the Exchange Act and the PSLRA with the intention of obtaining the benefits of the "safe harbor" provisions of such laws. Covanta cautions investors that any forward-looking statements made by Covanta are not guarantees or indicative of future performance. Important assumptions and other important factors that could cause actual results to differ materially from those forward-looking statements with respect to Covanta, include, but are not limited to, those factors, risks and uncertainties that are described in Item 1A of its Annual Report on Form 10-K for the year ended December 31, 2007, and in securities filings by Covanta with the SEC.
Although Covanta believes that its plans, intentions and expectations reflected in or suggested by such forward-looking statements are reasonable, actual results could differ materially from a projection or assumption in any forward-looking statements. Covanta's future financial condition and results of operations, as well as any forward-looking statements, are subject to change and inherent risks and uncertainties. The forward-looking statements contained in this press release are made only as of the date hereof and Covanta does not have or undertake any obligation to update or revise any forward-looking statements whether as a result of new information, subsequent events or otherwise, unless otherwise required by law.
Contacts:
Marisa F. Jacobs, Esq.
Vice President, Investor Relations and Corporate Communications
1-973-882-4196
Vera Carley
Media Relations Manager
1-973-882-2439