===============================================================================
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the Period Ended March 31, 1998
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 0-28652
AMERICAN DISPOSAL SERVICES, INC.
------------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 13-3858494
------------------------------- ------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
745 McClintock - Ste 230
Burr Ridge, Illinois 60521
------------------------------------------ ---------------------------
(Address of principal executive offices) (Zip Code)
(630) 655-1105
--------------------------------------------------
(Registrant's telephone number, including area code)
Not applicable
--------------------------------------------------
(Former name, former address and former fiscal year,
if changed since last report)
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 periods 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
Applicable Only to Corporate Issuers
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practical date.
Common Stock, $.01 Par Value - 22,858,403 shares as of May 15, 1998
===============================================================================
<PAGE>
AMERICAN DISPOSAL SERVICES, INC.
Index
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Condensed Consolidated Balance Sheets - March 31, 1998 (Unaudited) and
December 31, 1997
Condensed Consolidated Statements of Income - Three months ended
March 31, 1998 and 1997 (Unaudited)
Condensed Consolidated Statements of Cash Flows - Three months ended
March 31, 1998 and 1997 (Unaudited)
Notes to the Condensed Consolidated Financial Statements (Unaudited)
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
Signatures
2
<PAGE>
PART I. FINANCIAL INFORMATION
AMERICAN DISPOSAL SERVICES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in Thousands)
<TABLE>
<CAPTION>
March 31,
1998 December 31,
(Unaudited) 1997
----------------- -----------------
<S> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents $ 3,293 $ 2,426
Cash held in escrow 805 337
Trade receivables, net of allowance of $1,407 and $1,326 24,574 23,052
Prepaid expenses and other current assets 3,199 2,695
----------------- -----------------
Total current assets 31,871 28,510
Property, plant, and equipment, net 187,346 174.340
Other assets:
Cost over fair value of net assets of acquired businesses,
net of accumulated amortization of $4,984 and $3,635 213,890 157,304
Other assets 11,529 12,870
----------------- -----------------
$ 444,636 $ 373,024
================= =================
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 7,488 $ 6,361
Accrued liabilities 17,199 13,283
Deferred revenues 6,443 5,785
Current portion of long-term debt and capital lease obligations 3,224 2,360
----------------- -----------------
Total current liabilities 34,354 27,789
Long-term debt and capital lease obligations, net of current portion 38,406 20,788
Accrued environmental and landfill costs 12,659 12,450
Deferred income taxes 2,577 2,577
Other long term liabilities 14,490 12,045
Stockholders' equity 342,150 297,375
----------------- -----------------
$ 444,636 $ 373,024
================= =================
</TABLE>
See accompanying notes.
3
<PAGE>
AMERICAN DISPOSAL SERVICES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Dollars in Thousands, Except per Share Data)
(Unaudited)
<TABLE>
<CAPTION>
Three months ended
March 31,
1998 1997
--------------- ---------------
<S> <C> <C>
Revenues $45,030 $18,511
Cost of operations 24,766 9,892
Selling, general and administrative expenses 5,208 2,685
Depreciation and amortization 6,923 3,784
--------------- ---------------
Operating income 8,133 2,150
Interest expense, net 880 1,552
Other income 83 21
--------------- ---------------
Income before income taxes 7,336 619
Income tax expense 2,861 173
--------------- ---------------
Net income $ 4,475 $ 446
=============== ===============
BASIC EARNINGS PER COMMON SHARE $ 0.22 $ 0.05
=============== ===============
DILUTED EARNINGS PER COMMON SHARE $ 0.21 $ 0.05
=============== ===============
</TABLE>
See accompanying notes.
4
<PAGE>
AMERICAN DISPOSAL SERVICES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
Three months ended
March 31,
1998 1997
------------- -------------
<S> <C> <C>
OPERATING ACTIVITIES:
Net income $ 4,475 $ 446
Adjustments to reconcile net income to net cash provided by (used in) operating
activities:
Depreciation and amortization 6,923 3,784
Provision for environmental and landfill costs 137 113
Gain on sale of fixed assets (70) (13)
Changes in operating assets and liabilities, net of effects from acquisitions:
Trade receivables 841 (1,998)
Prepaid expenses and other assets 692 (1,530)
Accounts payable, accrued liabilities and accrued environmental
and landfill costs 134 (1,549)
Deferred revenue 231 297
Other long-term liabilities 2,445 -
------------- -------------
Net cash provided by (used in) operating activities 15,808 (450)
------------- -------------
INVESTING ACTIVITIES:
Capital expenditures (8,507) (3,599)
Cost of acquisitions, net of cash acquired (22,875) (32,224)
------------- -------------
Net cash used in investing activities (31,382) (35,823)
------------- -------------
FINANCING ACTIVITIES:
Proceeds from issuances of long-term debt 18,746 36,455
Repayments of indebtedness (2,305) (281)
Debt issuance costs - (253)
------------- -------------
Net cash provided by financing activities 16,441 35,921
------------- -------------
Net increase (decrease) in cash and cash equivalents 867 (352)
Cash and cash equivalents, at beginning of period 2,426 2,301
------------- -------------
Cash and cash equivalents, at end of period $ 3,293 $ 1,949
============= =============
NONCASH ACTIVITIES:
Issuance of common stock for certain acquisitions $ 40,300 $ -
Issuance of notes payable for certain acquisitions - 2,598
Consideration held back or held in escrow for certain acquisitions 2,872 1,776
</TABLE>
See accompanying notes.
5
<PAGE>
AMERICAN DISPOSAL SERVICES, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
March 31, 1998 and 1997
(Unaudited)
1. Formation and Basis of Presentation
American Disposal Services, Inc. (the "Company") is a regional, integrated,
non-hazardous solid waste services company that provides solid waste collection,
transfer and disposal services primarily in the Midwest and in the Northeast.
The accompanying unaudited condensed consolidated financial statements have
been prepared in accordance with generally accepted accounting principles for
interim financial information and with the instructions to Form 10-Q and Article
10 of Regulation S-X. Accordingly, they do not include all of the information
and footnotes required by generally accepted accounting principles for complete
financial statements. In the opinion of management, all adjustments (consisting
of normal recurring accruals) considered necessary for a fair presentation have
been included. Operating results for the three month period ended March 31, 1998
are not necessarily indicative of the results that may be expected for the
fiscal year ending December 31, 1998. These financial statements should be read
in conjunction with the consolidated financial statements, including the notes
thereto, for the fiscal year ended December 31, 1997 included in the Company's
Annual Report on Form 10-K/A.
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the amounts reported in the financial statements and
accompanying notes. Actual results could differ from those estimates.
2. Environmental Matters
See the Company's Annual Report on Form 10-K/A for a description of
environmental matters.
3. Earnings per Share
The following table sets forth the computation of earnings per common share
(dollars in thousands):
<TABLE>
<CAPTION>
Three months ended
March 31,
1998 1997
-------------- --------------
<S> <C> <C>
Numerator:
Net income $ 4,475 $ 446
============== ==============
Denominator:
Demonimator for basic earnings per common
share-weighted average shares outstanding 20,619,472 8,872,454
Effect of dilutive securities:
Stock options and warrants 677,418 500,664
-------------- --------------
Denominator for diluted earnings per common
share-adjusted weighted average shares and
assumed conversions 21,296,890 9,373,118
============== ==============
</TABLE>
4. Public Offerings
In May 1997, the Company issued 4,600,000 shares of common stock at $16.50
per share in a public offering. Proceeds from the offering, net of underwriting
commissions and related expenses, were $70.1 million. The offering proceeds were
used to finance acquisitions and pay down a portion of the Company's Credit
Facility.
In October 1997, the Company completed a public offering of 6,837,000
shares of common stock at $30.50 per share. Of the 6,837,000 shares, 4,325,000
shares were issued and sold by the Company and 2,512,000 shares were sold by
selling stockholders.
6
<PAGE>
Proceeds to the Company from the offering, net of underwriting commisions and
related expenses, were $123.8 million. The offering proceeds were used to
finance acquisitions and pay down a portion of the Company's Credit Facility.
5. Acquisitions
The acquisitions below have been accounted for using the purchase method of
accounting and, accordingly, the results of their operations have been included
in the Company's results of operations from their respective acquisition dates.
The purchase prices have been allocated to the assets acquired and liabilities
assumed based on their fair values at their respective acquisition dates with
the residual allocated to cost over fair value of net assets acquired.
During the first three months of 1998, the Company acquired nine
non-hazardous solid waste businesses, consisting of nine collection operations
and two transfer stations. During 1997, the Company acquired 28 non-hazardous
solid waste businesses, consisting of 28 collection operations, seven transfer
stations, four landfills, and two beneficial reuse facilities.
The Company has not completed its valuation of certain of its 1998 and 1997
purchases and the purchase price allocations may be subject to change when
additional information concerning asset and liability valuations is completed.
The pro forma unaudited results of operations for the three months ended
March 31, 1998 and 1997, assuming each acquisition and the public offerings in
footnote 4 (above) had occurred on January 1, 1997, are as follows (dollars in
thousands, except per share data):
<TABLE>
<CAPTION>
Three months ended
March 31,
1998 1997
-------------- --------------
<S> <C> <C>
Revenues $45,082 $44,154
Operating income 8,127 6,399
Net income 5,008 3,851
Pro forma net income per diluted share of
common stock 0.24 0.18
Weighted average common stock
outstanding, assuming dilution 21,296,890 20,904,459
</TABLE>
The proforma results do not purport to be indicative of the results of
operations which actually would have resulted had the acquisitions occurred on
January 1, 1997 nor are they necessarily indicative of future operating results.
6. Seasonality
The Company's revenues tend to be somewhat lower in the winter months. This
is primarily attributable to the fact that: (i) the volume of waste relating to
construction and demolition activities tends to increase in the spring and
summer months; and (ii) the volume of industrial and residential waste in the
regions where the Company operates tends to decrease during the winter months.
In addition, particularly harsh weather conditions may delay the development of
landfill capacity and otherwise result in the temporary suspension of certain of
the Company's operations and could materially adversely affect the Company's
overall business, financial condition and results of operations.
7. Subsequent Event
In April 1998, the Company completed a public offering of 4,600,000 shares
of common stock of which approximately 2.1 million were issued and sold by the
Company and approximately 2.5 million were sold by certain selling stockholders,
at $36.50 per share. This resulted in net proceeds to the Company of
approximately $71.4 million. A portion of the offering proceeds were used to pay
down the Company's Credit Facility and the balance will be used to fund future
acquisitions.
7
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following discussion should be read in conjunction with the Company's
unaudited Condensed Consolidated Financial Statements and the related notes
thereto included elsewhere herein.
INTRODUCTION
The Company has adopted an acquisition-based growth strategy that focuses
on: (i) the identification and acquisition of solid waste landfills located in
secondary markets that are within approximately 125 miles of significant
metropolitan centers; and (ii) securing dedicated waste streams for such
landfills by the acquisition or development of transfer stations and the
acquisition of collection companies. The Company has completed 70 acquisitions
from January 1993 through March 1998, including nine hauling companies and two
transfer stations acquired in the three months ended March 31, 1998 (the "1998
Acquisitions"). All of these acquisitions were accounted for under the purchase
method of accounting for business combinations. Accordingly, the amortization of
goodwill reflects the fair market value of the Company's assets at the time of
their acquisition rather than their historical cost basis, and the results of
operations for such acquired businesses are included in the Company's financial
statements only from the applicable date of acquisition. As a result, the
Company believes its historical results of operations for the periods presented
are not directly comparable.
FORWARD LOOKING STATEMENTS
Certain information contained in this Quarterly Report on Form 10-Q,
including, without limitation information appearing under Part I, Item 2,
"Managements' Discussion and Analysis of Financial Condition and Results of
Operations," are forward-looking statements (within the meaning of Section 27A
of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of
1934). Factors set forth under the caption "Risk Factors" in the Company's
Annual Report on Form 10K/A could affect the Company's actual results and could
cause the Company's actual results to differ materially from those expressed in
any forward- looking statements made by, or on behalf of, the Company in this
Quarterly Report on Form 10-Q.
GENERAL
The Company's revenues are attributable primarily to fees charged to
customers for waste collection, transfer and disposal services. The Company's
collection services are generally provided under direct agreements with its
customers or pursuant to contracts with municipalities. Commercial and municipal
contract terms, where used, generally range from one to five years and commonly
have automatic renewal options. A relatively small portion of such agreements
also provide for the prepayment of certain fees, which are reflected as deferred
revenues. The table below shows for the periods indicated, the percentage of the
Company's total revenues attributable to services provided:
Three Months Ended
March 31,
1998 1997
------------ ------------
Collection (1) 61.1% 48.9%
Transfer 9.4 3.8
Landfill (1) 26.3 46.4
Other 3.2 0.9
------------ ------------
Total Revenues 100.0% 100.0%
============ ============
(1) The portion of collection revenues attributable to disposal charges for
waste collected by the Company and disposed of at the Company's landfills has
been excluded from collection revenues and included in landfill revenues.
A component of the Company's business strategy is to maximize
internalization of waste it collects and thereby realize higher margins from its
operations. By disposing of waste at Company-owned landfills, the Company
retains the margin generated through disposal operations that would otherwise be
earned by third-party landfills. For the three months ended March 31, 1998,
approximately 81% of the total tonnage collected by the Company was disposed of
at Company-owned landfills. During such period, the Company's captive waste
(consisting of waste collected by the Company and delivered to any of its
landfills and waste delivered to any of the Company's landfills by third-party
haulers under long-term collection contracts) constituted an average of
approximately 73% of the solid waste disposed of at its landfills.
8
<PAGE>
The Company has estimated that, as of December 31, 1997, closure costs
expected to occur during the operating lives of these facilities and expensed
over these facilities' useful lives will approximate $17.3 million. In addition,
the Company has estimated that, as of December 31, 1997, total costs for
post-closure activities, including cap maintenance, groundwater monitoring,
methane gas control and recovery and leachate treatment/disposal for up to 30
years after closure in certain cases, will be approximately $54.4 million. The
accruals reflect relatively young landfills with estimated remaining lives,
based on current waste flows, that range from approximately three to 50 years,
and an estimated average remaining life of greater than 20 years.
RESULTS OF OPERATIONS
The following table sets forth items in the Company's consolidated
statement of operations as a percentage of revenues for the periods indicated:
<TABLE>
<CAPTION>
Three Months Ended
March 31,
1998 1997
------------ ------------
<S> <C> <C>
Revenues........................................... 100.0% 100.0%
Cost of operations................................. 55.0 53.4
Selling, general and administrative expenses....... 11.6 14.5
Depreciation and amortization...................... 15.3 20.5
------------ ------------
Operating income................................... 18.1 11.6
Interest expense, net.............................. 2.0 8.4
Other income....................................... 0.2 0.1
Income tax expense................................. 6.4 0.9
------------ ------------
Net income....................................... 9.9% 2.4%
============ ============
EBITDA margin (1).................................. 33.4% 32.1%
============ ============
</TABLE>
(1) EBITDA margin represents operating income plus depreciation and amortization
divided by revenues.
THREE MONTHS ENDED MARCH 31, 1998 AND 1997
REVENUES. Revenues for the three months ended March 31, 1998 were $45.0
million compared to $18.5 million for the three months ended March 31, 1997. Of
the increase in revenues, $24.8 million is due primarily to the effects of
companies acquired during 1997 and the first quarter of 1998, while
approximately $1.7 million is attributable to increases in revenues in
operations acquired prior to 1997.
COST OF OPERATIONS. Cost of operations for the three months ended March 31,
1998 was $24.8 million compared to $9.9 million for the three months ended March
31, 1997. This increase in costs was attributable primarily to increases in the
Company's revenues described above. As a percentage of revenues, cost of
operations was 55.0% in the 1998 period compared to 53.4% in the 1997 period.
The increased costs as a percentage of the Company's overall revenue are due to
the impact of more substantial collection versus landfill operations in the 1998
period compared to the same period in 1997.
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES. SG&A expenses were $5.2
million for the three months ended March 31, 1998 compared to $2.7 million for
the three months ended March 31, 1997. This increase in costs was attributable
primarily to increases in the Company's revenues described above. As a
percentage of revenues, SG&A expenses decreased to 11.6% in the 1998 period from
14.5% in the 1997 period. The decrease in SG&A expenses as a percentage of
revenues is due primarily to a significant increase in revenue producing assets,
while corporate and other related administrative expenses increased moderately.
DEPRECIATION AND AMORTIZATION. Depreciation and amortization expense for
the three months ended March 31, 1998 was $6.9 million compared to $3.8 million
for the three months ended March 31, 1997. The increase in depreciation and
amortization expense is due primarily to increases in the Company's revenues
described above. As a percentage of revenues, depreciation and amortization
expense was 15.3% and 20.5% for the three months ended March 31, 1998 and 1997,
respectively. The decline as a percent of revenues in the March 1998 period
compared to the March 1997 period is due primarily to the reduction in the
relative concentration of landfill assets, which typically have higher
depreciation and amortization expense than collection operations.
9
<PAGE>
NET INTEREST EXPENSE. Net interest expense was $880,000 for the three
months ended March 31, 1998 compared to $ 1.6 million for the three months ended
March 31, 1997, which reflects the debt structure of the Company during the
respective periods and an overall improvement in the Company's effective
borrowing rate.
INCOME TAXES. The Company recorded an income tax provision of $2.9 million
for the three months ended March 31, 1998 compared to a $173,000 for the three
months ended March 31, 1997, reflecting the increased taxable income generated,
partially offset by utilization of net operating loss carryforwards.
LIQUIDITY AND CAPITAL RESOURCES
Due to the capital intensive nature of the solid waste industry and the
Company's focus on an acquisition-based growth strategy, the Company has used,
and expects to continue using, substantially all cash generated from operations
to fund acquisitions, capital expenditures and landfill development.
Historically, the Company has satisfied it acquisition, capital expenditure and
working capital needs primarily through equity and bank financings. There can be
no assurance that such financing will continue to be available.
Net cash provided by operating activities in the quarter was $15.8 million
compared to net cash used by operating activities of $450,000 in the prior year
period, due to acquisition related activities which resulted in an improvement
in net income to $4.5 million in the three months ended March 31, 1998 compared
to $446,000 in the three months ended March 31, 1997. Additional net cash was
provided by non-cash depreciation and amortization expense increasing $3.1
million and long term liabilities increasing $2.4 million over the prior period.
Net cash used in investing activities was $31.4 million and $35.8 million
in the three months ended March 31, 1998 and 1997, respectively. The Company's
capital expenditures increased to $8.5 million from $3.6 million in the prior
year period due to a higher revenue producing asset base, while acquisition
spending was $22.9 million and $32.2 million, for the three months ended March
31, 1998 and 1997, respectively. In fiscal year 1998, the Company expects to
spend approximately $29 million for capital expenditures, on operations owned as
of January 1, 1998, of which approximately $9 million is anticipated to be used
for cell development.
Net cash provided by financing activities totaled $16.4 million for the
three months ended March 31, 1998, compared to $35.9 million for the comparable
prior year period, drawn principally from the Company's Credit Facility to fund
acquisitions.
The Company currently has a $140 million revolving credit facility (the
"Credit Facility") with ING (U.S.) Capital Corporation, as administrative agent,
Morgan Guaranty Trust Company of New York, as syndication agent, Union Bank of
California, N.A., as documentation agent, and BHF-Bank Aktiengesellschaft and
Bank of America Illinois, as co-agents, for the lenders. The Credit Facility
provides the Company with a revolving line of credit of $140 million to be used
for acquisitions (of which $20 million may be used for working capital and
letter of credit purposes). The Credit Facility bears interest at rates per
annum equal to, at the Company's discretion, either: (i) the higher of (a) the
federal funds rate plus 0.5% and (b) the prime rate, plus an applicable margin
or (ii) the London Interbank Offered Rate ("LIBOR"), plus an applicable margin,
and matures in 2002. As of March 31, 1998 the Company had borrowed $36.4 million
under the Credit Facility. As of such date, the interest rate on the various
loans under the Credit Facility ranged from 6.63% to 8.50% and the total unused
availability was $103.6 million.
Effective April 3, 1998, the Company completed a public offering of 4.6
million shares of common stock of which approximately 2.1 million were issued
and sold by the Company and approximately 2.5 million were sold by certain
selling stockholders, at $36.50 per share. This resulted in net proceeds to the
Company of approximately $71.4 million. A portion of the offering proceeds were
used to pay down the Company's Credit Facility and the balance will be used to
fund future acquisitions.
The Company intends to satisfy its interest obligations as well as future
capital expenditures and working capital requirements, with cash flows from
operations and borrowings under the Credit Facility. However, the Company may
need to raise additional capital to fund the acquisition and integration of
additional solid waste businesses. The Company may raise such funds through bank
financings or public or private offerings of its securities. There can be no
assurance that the Company will be able to secure such funding, if necessary, on
favorable terms, if at all. If the Company is not successful in securing such
funding, the Company's ability to pursue its business strategy may be impaired
and results of operations for future periods may be adversely affected.
The Company expects that Subtitle D and other regulations that apply to the
non-hazardous waste disposal industry will require the Company, as well as
others in the industry, to alter operations and to modify or replace existing
facilities. Such expenditures have been and will continue to be substantial.
Regulatory changes could accelerate expenditures for closure and post-closure
monitoring and obligate the Company to spend sums in addition to those presently
reserved for such purposes. The factors, together with the other factors
discussed above, could substantially increase the Company's operating costs.
10
<PAGE>
INFLATION AND PREVAILING ECONOMIC CONDITIONS
To date, inflation has not had a significant impact on the Company's
operations. Consistent with industry practice, most of the Company's contracts
provide for a pass through of certain costs, including increases in landfill
tipping fees and, in some cases, fuel costs. The Company therefore believes it
should be able to implement price increases sufficient to offset most cost
increases resulting from inflation. However, competitive factors may require the
Company to absorb at least a portion of these cost increases, particularly
during periods of high inflation. The Company is unable to determine the future
impact of a sustained economic slowdown.
SEASONALITY
The Company's revenues tend to be somewhat lower in the winter months. This
is primarily attributable to the fact that: (i) the volume of waste relating to
construction and demolition activities tends to increase in the spring and
summer months; and (ii) the volume of industrial and residential waste in the
regions where the Company operates tends to decrease during the winter months.
In addition, particularly harsh weather conditions may delay the development of
landfill capacity and otherwise result in the temporary suspension of certain of
the Company's operations and could materially adversely affect the Company's
overall business, financial condition and results of operations.
11
<PAGE>
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
a. Financial Data Schedule (filed electronically, only).
b. Reports on Form 8-K: The Company filed Form 8-K dated
January 19, 1998 Items 5 and 7, only.
12
<PAGE>
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
AMERICAN DISPOSAL SERVICES, INC.
Date: May 15, 1998 /s/ Stephen P. Lavey
---------------------
Stephen P. Lavey
Vice President and Chief Financial Officer
13
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> MAR-31-1998
<CASH> 3,293
<SECURITIES> 0
<RECEIVABLES> 24,574
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 31,871
<PP&E> 187,346
<DEPRECIATION> 0
<TOTAL-ASSETS> 444,636
<CURRENT-LIABILITIES> 34,354
<BONDS> 38,406
0
0
<COMMON> 0
<OTHER-SE> 342,150
<TOTAL-LIABILITY-AND-EQUITY> 444,636
<SALES> 0
<TOTAL-REVENUES> 45,030
<CGS> 24,766
<TOTAL-COSTS> 36,897
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 880
<INCOME-PRETAX> 7,336
<INCOME-TAX> 2,861
<INCOME-CONTINUING> 4,475
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 4,475
<EPS-PRIMARY> 0.22
<EPS-DILUTED> 0.21
</TABLE>
