MARCH 2012

Covanta reports increased revenue

Covanta Holding Corporation reported financial results for the 3 and 12 months ended December 31, 2011.

  • Revenue increased 4 percent to $1,650 million.
  • Adjusted EBITDA increased 5 percent or $22 million to $492 million.
  • Free cash flow was in line with guidance at $280 million.

Shareholder returns totaled $272 million, including quarterly dividend paying $0.30/share annually.

Operating income increased by $63 million, or 41 percent, to $218 million compared with 2010. Excluding the non-cash write-downs in 2010, operating income increased by $29 million, or 15 percent, primarily as a result of higher recycled metal revenues, service fee contract escalations, higher waste volumes and operational improvements. This increase was partially offset by lower debt service pass through revenue, lower operating income at their biomass facilities and lower energy pricing.

The company repurchased $230 million of common stock, or 14.4 million shares (10 percent of outstanding shares), at a weighted average cost of $15.99 per share in 2011. Aggregate repurchases since June 2010 total $325 million, or 20.5 million shares, representing 14 percent of outstanding shares. In the first quarter, the company also initiated a quarterly cash dividend in the amount of $0.075 per share ($0.30 per share annualized).