SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM 10-Q
(Mark One)
/X/ Quarterly report pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the quarterly period ended NOVEMBER 30, 1994 or
/ / Transition report pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the transition period from _________ to _________
Commission File Number 1-11008
ALLWASTE, INC.
(Exact name of Registrant as specified in its charter)
DELAWARE 74-2427167
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
5151 SAN FELIPE, SUITE 1600, HOUSTON, TEXAS 77056
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (713) 623-8777
Indicate by check mark whether the Registrant (1) has filed all reports
required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.
Yes /X/ No/ /
The number of shares of Common Stock of the Registrant, par value $.01 per
share, outstanding at January 11, 1995 was 38,264,057.
<PAGE>
ALLWASTE, INC. AND SUBSIDIARIES
FORM 10-Q FOR THE QUARTER ENDED NOVEMBER 30, 1994
INDEX
Page
----
Part I - Financial Information
Item 1 - Financial Statements
General Information ................................................... 3
Condensed Consolidated Balance Sheets as of November 30, 1994
(unaudited) and August 31, 1994 ...................................... 4
Condensed Consolidated Statements of Operations for the Three
Month Periods Ended November 30, 1994 and 1993 (unaudited) ........... 5
Condensed Consolidated Statements of Cash Flows for the Three
Month Periods Ended November 30, 1994 and 1993 (unaudited) ........... 6
Notes to Condensed Consolidated Financial Statements
(unaudited) .......................................................... 7
Item 2 - Management's Discussion and Analysis of Financial
Condition and Results of Operations ........................... 9
Part II - Other Information
Item 6 - Exhibits and Reports on Form 8-K ............................... 14
11.1 - Calculation of Net Income Per Common Share .............. 15
Signature ................................................................. 16
<PAGE>
ALLWASTE, INC. AND SUBSIDIARIES
PART I, ITEM 1 - FINANCIAL INFORMATION
GENERAL INFORMATION
The condensed consolidated financial statements herein have been
prepared by the Company without audit, pursuant to the rules and regulations of
the Securities and Exchange Commission (the "SEC"). As applicable under such
regulations, certain information and footnote disclosures normally included in
financial statements prepared in accordance with generally accepted accounting
principles have been condensed or omitted. The Company believes that the
presentation and disclosures herein are adequate to make the information not
misleading, and the financial statements reflect all elimination entries and
normal adjustments which are necessary for a fair statement of the results for
the interim periods ended November 30, 1994 and 1993.
Operating results for interim periods are not necessarily indicative of
the results for full years. It is suggested that these condensed consolidated
financial statements be read in conjunction with the consolidated financial
statements for the year ended August 31, 1994 and the related notes thereto
included in the Company's Annual Report on Form 10-K filed with the SEC.
3
<PAGE>
ALLWASTE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
November 30, August 31,
1994 1994
---------- ----------
(Unaudited) (Audited)
ASSETS
CURRENT ASSETS
Cash and cash equivalents .................... $ 3,237 $ 3,215
Receivables, net ............................. 81,069 77,219
Inventories .................................. 4,237 4,302
Prepaid expenses ............................. 5,832 7,206
Other current assets ......................... 2,090 2,864
---------- ----------
Total current assets ....................... 96,465 94,806
---------- ----------
PROPERTY AND EQUIPMENT ......................... 235,778 221,019
Less - Accumulated depreciation .............. (101,659) (94,145)
---------- ----------
134,119 126,874
---------- ----------
GOODWILL, net .................................. 83,625 84,176
NOTES RECEIVABLE AND OTHER ASSETS .............. 13,684 13,560
---------- ----------
Total assets ............................... $ 327,893 $ 319,416
========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable and accruals ................ $ 55,057 $ 54,303
Current maturities of long-term debt and
convertible subordinated debt ............... 8,314 7,870
---------- ----------
Total current liabilities .................. 63,371 62,173
---------- ----------
LONG-TERM DEBT, net ............................ 87,664 85,356
CONVERTIBLE SUBORDINATED DEBT, net ............. 36,987 37,672
DEFERRED INCOME TAXES AND OTHER
LIABILITIES ................................... 13,086 12,997
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' EQUITY
Common Stock ................................. 385 376
Additional paid-in capital ................... 48,538 47,482
Retained earnings ............................ 78,924 74,422
Treasury stock ............................... (1,062) (1,062)
---------- ----------
Total shareholders' equity ................. 126,785 121,218
---------- ----------
Total liabilities and shareholders'
equity .................................... $ 327,893 $ 319,416
========== ==========
See Notes to Condensed Consolidated Financial Statements.
4
<PAGE>
ALLWASTE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(in thousands, except per share data)
For the Three Months Ended
November 30,
--------------------------
1994 1993
-------- --------
REVENUES ................................... $ 99,656 $ 83,431
COST OF OPERATIONS ......................... 73,780 63,060
-------- --------
Gross profit ............................. 25,876 20,371
SELLING, GENERAL AND
ADMINISTRATIVE EXPENSES .................. 17,521 14,486
INTEREST EXPENSE ........................... (2,085) (1,456)
INTEREST INCOME ............................ 116 126
OTHER INCOME (EXPENSE), net ................ 89 (134)
-------- --------
Income before income taxes ............... 6,475 4,421
INCOME TAX PROVISION ....................... (2,842) (1,667)
MINORITY INTEREST, net of tax .............. 87 112
-------- --------
Net income ............................. $ 3,720 $ 2,866
======== ========
Net income per common share .............. $ .10 $ .08
======== ========
WEIGHTED AVERAGE NUMBER OF
COMMON SHARES OUTSTANDING ................. 38,637 36,706
======== ========
See Notes to Condensed Consolidated Financial Statements.
5
<PAGE>
ALLWASTE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(in thousands)
For the Three Months Ended
November 30,
--------------------------
1994 1993
--------- -------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income ........................................... $ 3,720 $ 2,866
Reconciliation of net income to cash provided by
operating activities:
Depreciation and amortization .................... 7,529 6,380
Loss (gain) on sale of property and
equipment ....................................... (131) 92
Allowance recorded on notes receivable ........... -- 1,740
Equity in losses of unconsolidated
partnership ..................................... -- 1,161
Gain on sale of marketable security .............. -- (2,688)
Common Stock received in lawsuit settlement ...... -- (1,062)
Change in assets and liabilities, net of
effects of acquisitions accounted for
as purchases:
Receivables .................................... (3,510) (3,267)
Inventories .................................... 65 112
Prepaid expenses and other current assets ...... 2,185 (538)
Notes receivable and other assets .............. (256) (113)
Accounts payable and accruals .................. 676 (1,660)
Deferred income taxes and other
liabilities ................................... 123 665
--------- -------
Cash provided by operating activities ............ 10,401 3,688
--------- -------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuances of Common Stock .......... 1,051 --
Proceeds from borrowings ......................... 2,515 4,250
Principal payments on borrowings ................. (467) (1,917)
--------- -------
Cash provided by financing activities ............ 3,099 2,333
--------- -------
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to property and equipment .............. (13,878) (8,170)
Proceeds from sale of property and equipment ..... 425 363
Payments for acquisitions accounted for
as purchases, net of cash acquired ............. -- (1,075)
Proceeds from sale of marketable security ........ -- 2,982
--------- -------
Cash used in investing activities ................ (13,453) (5,900)
--------- -------
EFFECT OF EXCHANGE RATE CHANGES ...................... (25) (220)
--------- -------
INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS ......................................... 22 (99)
CASH AND CASH EQUIVALENTS, beginning of
period .............................................. 3,215 2,966
--------- -------
CASH AND CASH EQUIVALENTS, end of period ............. $ 3,237 $ 2,867
========= =======
See Notes to Condensed Consolidated Financial Statements.
6
<PAGE>
ALLWASTE, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
NOVEMBER 30, 1994
(Unaudited)
(1) SIGNIFICANT ACCOUNTING POLICIES --
The consolidated financial statements include the accounts of Allwaste,
Inc. and its subsidiaries (the "Company"). There have been no significant
changes in the accounting policies of the Company during the periods presented.
For a description of these policies, see Note 1 of Notes to Consolidated
Financial Statements in the Company's Form 10-K for the year ended August 31,
1994.
(2) ACQUISITIONS --
During the first three months of fiscal year 1995, the Company completed
the acquisition of one business for aggregate consideration of $3.4 million
consisting of 557,430 shares of the Company's Common Stock. As an integral part
of this acquisition, all former shareholders signed non-compete agreements and
key management entered into agreements with the Company to continue managing the
business.
Subsequent to November 30, 1994, the Company has completed one additional
acquisition accounted for as a purchase. Aggregate consideration for this
business was $.9 million, all of which was paid in cash.
(3) INCOME TAXES --
Income tax provisions for interim periods are estimated based upon
projections of the annual effective tax rates. Certain assumptions have been
made in this regard in projecting the effective tax rate for fiscal 1995, which
may not be resolved until the end of the year. The effective tax rate of 44% for
the three month period ended November 30, 1994 reflects the estimated U.S.
federal and state income taxes and foreign taxes on the earnings of the
Company's foreign subsidiaries.
Deferred tax assets and liabilities are determined based on the estimated
future tax effects of differences between the financial statement and tax bases
of assets and liabilities. On the accompanying consolidated balance sheet,
deferred tax assets and liabilities are netted within each tax jurisdiction. The
following table sets forth the gross deferred tax assets (liabilities) recorded
(in thousands):
1994
--------------------------
November 30, August 31,
---------- ---------
Current deferred tax assets .................... $ 2,124 $ 4,732
Non-current deferred tax assets ................ 2,043 1,496
-------- --------
Total deferred tax assets .................... 4,167 6,228
-------- --------
Current deferred tax liabilities ............... (34) (1,984)
Non-current deferred tax liabilities ........... (14,489) (13,827)
-------- --------
Total deferred tax liabilities ............... (14,523) (15,811)
-------- --------
Net deferred tax liabilities ................... $(10,356) $ (9,583)
======== ========
7
<PAGE>
The components of the net deferred tax assets (liabilities) are as
follows (in thousands):
1994
--------------------------
November 30, August 31,
---------- ---------
Depreciation and amortization ................ $(12,757) $(11,994)
Financial reserves and accruals
not yet deductible ........................ 2,401 2,411
-------- --------
Total ...................................... $(10,356) $ (9,583)
======== ========
(4) LONG TERM DEBT --
In October 1994, the Company amended its revolving credit agreement to
provide an unsecured $160 million revolving credit line to the Company. As of
January 11, 1995, the Company had unutilized borrowing capacity under the new
agreement of $34.3 million after utilizing $19.0 million of the facility for
letters of credit to secure certain insurance obligations and performance bonds.
In addition, the agreement provides for the extension of the revolving portion
of the credit agreement until January 1998, at which time any outstanding
borrowings convert to a term loan due in equal quarterly installments through
January 31, 2002. Borrowing availability is subject to the maintenance of
certain financial and cash flow ratios.
In October 1994, the Company entered into an interest rate swap
agreement through June 1997 to potentially lower the overall cost of borrowings.
The agreement is with a member of the Company's bank group and modifies $30
million of 7.25% fixed rate debt to LIBOR-based floating rate plus .24% debt,
which is reset every three months. The applicable swap rate at January 11, 1995
was 6.30%. The swap agreement only subjects the Company to the risk of interest
rate fluctuations.
8
<PAGE>
ALLWASTE, INC. AND SUBSIDIARIES
PART I, ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
For supplemental information, it is suggested that "Management's
Discussion and Analysis of Financial Condition and Results of Operations" be
read in conjunction with the corresponding section included in the Company's
Annual Report on Form 10-K filed for the year ended August 31, 1994 with the
SEC.
THREE MONTHS ENDED NOVEMBER 30, 1994 AND 1993
The following is a summary of revenues and gross profit by operating
segment ($ in thousands):
For the Three Months Ended
November 30,
---------------------------------------
1994 1993
---------------- ----------------
Revenues:
Environmental Services ......... $70,158 70% $58,988 71%
Recycling ...................... 17,065 17% 14,077 17%
Container Services ............. 12,433 13% 10,366 12%
------- --- ------- ---
Total Revenues ............... $99,656 100% $83,431 100%
======= === ======= ===
Gross Profit:
Environmental Services ......... $19,140 27% $15,356 26%
Recycling ...................... 3,119 18% 2,137 15%
Container Services ............. 3,617 29% 2,878 28%
------- --- ------- ---
Total Gross Profit ........... $25,876 26% $20,371 24%
======= === ======= ===
REVENUES - Compared to the corresponding periods in the prior year, the
Company's consolidated revenues increased by 19% for the quarter ended November
30, 1994. During the quarter ended November 30, 1994, an improvement in the
general economy contributed to the increase in revenues across each of the
Company's divisions.
ENVIRONMENTAL SERVICES revenues increased 19% to $70.2 million in the
first quarter of fiscal 1995 as compared to the same period in fiscal 1994.
Purchase acquisitions completed after fiscal year 1993 contributed $4.0 million
or 36% of the growth in revenues in the quarter ended November 30, 1994.
Approximately $7.2 million or 64% of the revenue growth was internally
generated. Internal revenue growth over the prior year period included $5.6
million in the Gulf region, $2.4 million in the Eastern region, $1.2 million in
the Western region and $.3 million in the Northern region (which includes most
of the division's Canadian operations). Internally generated revenues decreased
in the
9
Pacific region by $2.2 million. Gulf region revenue growth benefitted from
increased dewatering and spill response projects and turnaround work resulting
from a general improvement in the business climate. There was also an increase
in boat and barge cleaning revenues in southern Louisiana. Eastern region
internal revenue growth is primarily due to site remediation and excavating work
in the pulp and paper industry and the early stages of a $7.0 million municipal
works project. Also, there was an increase in aboveground tank cleaning jobs and
higher than expected demand for airmoving and hydroblasting services. Internal
revenue growth in the Western region resulted from an increase in airmoving and
scaffolding work due to customer and geographic expansion. The decrease in
internal revenues in the Pacific region resulted from lower levels of day-to-day
service work with California refining and petrochemical customers and the
deferral of refinery turnaround work in certain plants.
RECYCLING revenues increased 21% to $17.1 million during the quarter
ended November 30, 1994 from the same period of the prior year. The revenue
increase for the first quarter of fiscal 1995 includes $2.9 million of external
revenue growth (97%) from two businesses acquired after the first quarter of
fiscal 1994. Excluding the contributions of the two acquired businesses, the
Company experienced a 5% increase in glass volumes and a 6% decrease in glass
prices as compared to the corresponding prior year period. Glass volumes
increased in the fiberglass industry by 8% due to a continued demand for
fiberglass insulation in the residential construction market and a 3% decrease
in price. Volume increased in container glass by 5% due to increased sales to
existing customers on the West Coast. Highway bead volumes remained flat with
the corresponding prior year period, with a 13% increase in prices due to the
continued economic recovery in fiscal 1995.
CONTAINER SERVICES revenues increased 20% to $12.4 million during the
first quarter of 1995 from the same period of the prior year. The increase in
revenue was all internally generated. Wastewater pretreatment revenues increased
by $.8 million, primarily due to $.5 million in revenues generated by a
wastewater pretreatment facility for non-hazardous liquid waste in the Atlanta,
Georgia area ("Georgia Recovery Systems" or "GRS") which was recorded under the
equity method of accounting in the same period of the prior fiscal year.
Intermediate bulk container ("IBCs") cleaning revenues increased $.6 million
during the first three months of fiscal 1995 over the same period of the prior
year due to volume gains resulting from the addition or expansion of IBC
cleaning capabilities in existing facilities and growth provided under the
Company's national IBC servicing agreement with Hoover Container Sales and
Services, Inc. ("Hoover"). The remaining increase in revenue included a $.5
million increase in tank trailer cleaning revenues resulting from a 6% volume
increase and a 2% increase in price and railcar cleaning revenues which
increased $.1 million as a result of a 3% increase in volume and an 11% increase
in price.
GROSS PROFIT MARGINS - Consolidated gross profit, as a percentage of
revenues ("gross margin") increased 2% to 26% for the three months ended
November 30, 1994 compared to the same period in the prior year.
ENVIRONMENTAL SERVICES gross margins increased to 27% for the three
month period ended November 30, 1994, as compared to 26% in the same period of
fiscal 1994. Gross margins for the three month period ended November 30, 1994
were favorably impacted by the increase in revenues for the division which
resulted in higher equipment and labor utilization and a decrease in costs
resulting from a continued focus on safety and training. Lower fuel costs
improved margins in the Gulf Coast operations due to a change in revenue mix
toward service lines which do not consume as much fuel.
10
Pacific region gross margins declined as a result of the decrease in revenues
during the first quarter of fiscal 1995 with labor and operating costs remaining
comparable to the prior year period.
RECYCLING gross margins increased 3% to 18% for the three month period
ended November 30, 1994, as compared to the same period of the prior year. West
Coast operations have experienced higher margins in the three month period ended
November 30, 1994, as compared to the same period of the prior year, due to a
decline in supply costs and improved operational efficiencies. Gross margins
also improved due to higher margins from the businesses acquired in fiscal 1994.
CONTAINER SERVICES gross margins increased 1% to 29% during the three
month period ended November 30, 1994, compared to the same period in fiscal
1994. The increase in gross margins is due to the nonrecurrence or reduction of
costs experienced in the first quarter of fiscal 1994 at certain operating
locations associated with temporary waste disposal, transitional relocation
inefficiencies and increased labor costs related to the introduction of
capabilities to handle multiple container types. Gross margins also improved as
a result of higher plant utilization due to increased container volumes.
SELLING, GENERAL AND ADMINISTRATIVE ("SG&A") EXPENSES - SG&A expenses
increased $3.0 million or 21% to $17.5 million during the three month period
ended November 30, 1994, compared to the same period in fiscal 1994.
Approximately $.8 million or 27% of the increase is due to direct SG&A expenses
from purchase acquisitions completed subsequent to fiscal 1993. The remainder of
the increase is due to higher overall levels of activity. SG&A expense in the
three month period ended November 30, 1994 has increased as a percentage of
total revenues to 18% from 17% in the same period of the prior year due to
accruals related to the Company's safety and management incentive plans. The
environmental services segment has increased its sales efforts as part of its
internal growth focus. The Company has also increased its staffing to support
its safety, quality and compliance programs.
INTEREST AND OTHER - As compared to the corresponding period in the
prior year, interest expense increased by $.6 million during the three month
period ended November 30, 1994, compared to the same period in fiscal 1994, due
to a higher average level of debt and higher average interest rates than in the
corresponding prior year period.
INCOME TAXES - The effective income tax rate for the three months ended
November 30, 1994 was 44%, compared to 38% in the same period in fiscal 1994.
The effective tax rate was higher than the statutory federal rate of 35%
primarily due to the effect of the nondeductibility of a portion of meal and
entertainment expenses, the nondeductible amortization of a portion of the
Company's goodwill, state income taxes and Canadian earnings which are taxed at
a higher statutory rate. The effective tax rate was lower in the same period of
the prior year primarily due to the nontaxable nature of $1.4 million of income
received during the first quarter of fiscal 1994.
FINANCIAL CONDITION
Shareholders' equity increased $5.6 million to $126.8 million. Working
capital increased $.5 million to $33.1 million reflecting increased overall
levels of activity and the business acquired in the first quarter of fiscal
1995. Long-term obligations, excluding minority interest, increased $1.7
million, primarily due to $2.5 million in additional borrowings under the
Company's revolving credit agreement
11
used primarily to fund capital expenditures during the three month period ended
November 30, 1994. These additional borrowings were offset by long-term
obligations which became current during the first quarter of fiscal 1995.
LIQUIDITY AND CAPITAL RESOURCES
Capital expenditures during the first quarter of fiscal 1995 were $13.9
million. Of the total capital expenditures during this period, $9.6 million
applied to environmental services operations, $3.1 million to container services
operations and the balance to recycling and corporate operations. The Company
has projected capital requirements of approximately $29 million for the next
three quarters, of which $15 million relates to environmental services
operations, $9 million to container services operations and $5 million to
recycling operations. The remainder of fiscal 1995 capital expenditures will be
funded from a combination of cash flows from operating activities, utilization
of the Company's revolving credit facility and a new operating lease facility
for environmental services equipment. The leasing facility, if completed, is
anticipated to be available during the second quarter of fiscal 1995. This
leasing agreement would reduce capital expenditures reported in future periods.
In October 1994, the Company amended its revolving credit agreement
which provides an unsecured $160 million revolving credit line to the Company.
As of January 11, 1995, unutilized borrowing capacity under the new agreement
was $34.3 million after utilizing $19.0 million of the facility for letters of
credit to secure certain insurance obligations and performance bonds. In
addition, the agreement provides for the extension of the revolving portion of
the credit agreement until January 1998, at which time any outstanding
borrowings convert to a term loan due in equal quarterly installments through
January 31, 2002. Borrowing availability is subject to the maintenance of
certain financial and cash flow ratios.
In October 1994, the Company entered into an interest rate swap
agreement through June 1997 to potentially lower the overall cost of borrowings.
The agreement is with a member of the Company's bank group and modifies $30
million of 7.25% fixed rate debt to LIBOR-based floating rate plus .24% debt,
which is reset every three months. The applicable swap rate at January 11, 1995
was 6.30%. The swap agreement only subjects the Company to the risk of interest
rate fluctuations. Substantially all of the Company's debt financing is subject
to variable interest rates. The prime lending rate has increased by 3/4% since
August 31, 1994 and rates could continue their upward trend.
FLUCTUATIONS IN RESULTS OF OPERATIONS
The Company experienced 19% growth in revenues in the first quarter of
fiscal 1995 and gross margin increased 2%. The growth in revenues is due to an
11% increase in internally generated revenues and an 8% increase in revenues
from acquisitions. Internal growth has resulted largely from the expansion of
service lines in existing operations. Management expects to continue to achieve
strong revenue growth in the remainder of fiscal 1995 through a combination of
internal growth programs and acquisitions.
The Company's Mexican joint venture has experienced pre-tax losses of
$.3 million, before absorption of the minority partner's interest in such
losses, in the three month period ended November 30, 1994. Management believes
that there is a significant market for environmental services in Mexico;
12
however, the extent to which this work will develop is uncertain. While
maintaining a presence in Mexico, management has taken steps to reduce losses by
decreasing overhead expenses. In December 1994, the Mexican peso began a period
of devaluation which will have an adverse effect on the Company due to the
inflationary impact. However; due to the immateriality of the Mexican operations
to the Company as a whole, the devaluation is not expected to have a significant
adverse impact upon the Company's results of operations.
The Company expects to continue to achieve strong growth in its IBC
cleaning and wastewater pretreatment services as a result of the Company's
existing IBC national service agreement with Hoover and expansion of both IBC
and wastewater pretreatment capabilities.
The impact of inflation upon the Company has been minimal.
13
ALLWASTE, INC. AND SUBSIDIARIES
PART II, ITEM 6 - EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits.
11.1 - Calculation of Net Income Per Common Share
(b) Reports on Form 8-K.
No reports on Form 8-K have been filed during the quarter ended
November 30, 1994.
14
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant, Allwaste, Inc., has duly caused this report to be signed on its
behalf by the undersigned, thereunto duly authorized.
ALLWASTE, INC.
Dated: January 12, 1995 By: I. T. CORLEY
I. T. Corley
15
EXHIBIT 11.1
ALLWASTE, INC. AND SUBSIDIARIES
CALCULATION OF NET INCOME PER COMMON SHARE
(Unaudited)
(in thousands, except per share data)
For the Three Months Ended
November 30,
-------------------------
1994 1993
--------- ---------
Net Income ......................................... $ 3,720 $ 2,866
========= =========
Common shares outstanding, beginning of period ..... 37,741 36,740
Weighted average number of common shares
outstanding:
Stock options and warrants, treasury
stock method .................................... 469 62
Purchased companies .............................. 557 --
Exercise of stock options ........................ 120 --
Receipt of Common Stock .......................... (250) (96)
--------- ---------
Total weighted average common shares
outstanding ....................................... 38,637 36,706
========= =========
Net income per common share ........................ $ .10 $ .08
========= =========
Fully diluted net income per common share is not presented for any period as it
is not materially different from the above primary calculations.
