Covanta Holding Corporation reports on second quarter
Covanta Holding Corporation reported financial results
for the three months ended June 30, 2009. Diluted earnings
per share were $0.21 in the second quarter of 2009 compared
to $0.27 in the second quarter of 2008.
For the three months ended June 30, 2009, operating revenues
were $376 million, an 11 percent decline from $423 million
in the prior year comparable period.
Domestic revenues declined by $21 million due to lower
recycled metal revenue of $13 million and a $7 million
decline in other revenue primarily related to timing
of construction activity. The remaining domestic business
revenue was essentially flat with new business revenue
of $6 million offsetting a $4 million decline in revenue
earned explicitly to service project debt. Domestic operating
expenses were reduced by $8 million during the quarter,
reflecting $20 million in expense reductions at existing
businesses and from reduced construction activity this
year, offset by $13 million in added expense from new
businesses and the effects of insurance recoveries.
International segment revenue decreased $28 million in
the quarter while plant operating expenses declined by
$27 million. These declines relate primarily to the Company’s
Indian facilities, where falling fuel prices reduced
the pass through component of our revenues and also lowered
Adjusted EBITDA was $140 million, down $22 million from
last year’s second quarter. 2008 results included $5
million of insurance recovery benefits at the Semass
facility. The remaining $17 million was due to lower
recycled metal revenue and higher G&A spending to
pursue growth. Strong operating performance and cost
reductions entirely offset lower energy prices and merchant
For the six months ended June 30, 2009, total Company
operating revenues were down 10 percent to $735 million.
Operating Cash Flow was $137 million for the year-to-date
period. Adjusted EBITDA was $222 million.