EX-99.1 2 d667812dex991.htm EX-99.1 EX-99.1
ADS Waste Holdings, Inc.
Lenders’
Presentation 
January 2014
Exhibit 99.1

2
This
presentation
contains
“forward-looking
statements”
within
the
meaning
of
the
federal
securities
laws.
Such forward-looking statements are subject to risks and uncertainties, including, in particular, statements
about
ADS
Waste
Holdings,
Inc.
(“ADS”
or
the
“Company”)
plans,
strategies,
prospects
and
industry
estimates.
These
statements
identify
prospective
information
and
include
words
such
as
“believes,”
“expects,”
“may,”
“will,”
“should,”
“seeks,”
“approximately,”
“intends,”
“plans,”
“estimates,”
or
“anticipates”
or
similar
expressions. Examples of forward-looking statements include, but are not limited to, statements regarding:
expected cost savings, sales increases, margins growth, cash flows, capital expenditures, market and
industry growth rates and trends, including trends towards outsourcing, product line and market expansion,
market share, operational and expense improvements (including headcount, technological, customer service
and business improvement initiatives), retention rates, demand for the Company’s products and financial
results. The foregoing is not an exclusive list of all forward-looking statements. Forward-looking statements
are based on the Company’s current expectations and assumptions regarding its business, the economy and
other future conditions. Because forward-looking statements relate to the future, they are subject to inherent
uncertainties, risks and changes in circumstances that are difficult to predict. The Company’s actual results
may differ materially from those contemplated by the forward-looking statements. They are neither statements
of historical fact nor guarantees or assurances of future performance. The matters referred to herein may not
in fact occur. You are cautioned, therefore, against relying on any of these forward-looking statements.
Any forward-looking statement speaks only as of the date on which it is made. Factors or events that could
cause the Company’s actual results to differ may emerge from time to time, and it is not possible to predict all
of
them.
The
Company
undertakes
no
obligation
to
publicly
update
any
forward-looking
statement,
whether
as
a result of new information, future developments or otherwise, except as may be required by law.
Disclaimer

3
Charlie Appleby
Chief Executive Officer
Richard Burke
President/Chief Operating Officer
Steven Carn
Chief Financial Officer
Christopher Blum
Deutsche Bank Securities
Call Speakers

4
I.
Transaction Overview
II.
Company Overview and Financial Performance Update
Table of Contents

Transaction Overview

6
–
Advanced
Disposal
Services
(“ADS”
or
the
“Company”)
is
the
largest
privately-
owned non-hazardous solid waste services company in the United States and the
fourth largest overall by revenue, with top 3 positions in most of its key markets
–
ADS is seeking to reduce pricing on its existing term loan
–
The transaction is leverage neutral and will result in up to ~$13 million of annual
interest
savings
for
the
company,
thereby
improving
its
interest
coverage
ratio from
3.1x to 3.5x on a pro forma basis
–
Existing ratings are B2 / B (corporate), B1 / B+ (term loan B), and Caa1 / CCC+
(senior notes)
–
Signature pages on commitments are due by 12:00 PM EST on February 6
–
ADS has continued to perform well with LTM 9/30/13 revenue and adjusted pro
forma EBITDA from continuing operations of $1,307mm and $383mm, respectively
–
Credit documentation is available on Intralinks
Executive Summary
th

7
Sources & Uses and Pro Forma Capitalization
($ millions)
Sources of funds
Uses of funds
Term loan B
1,782
Repriced term loan B
1,782
Cash from balance sheet
3
Estimated fees, expenses & OID
3
Total sources
$1,785
Total uses
$1,785
As of
Transaction Adj.
9/30/2013
xEBITDA
(+)
(-)
Pro forma
xEBITDA
Cash
$17
(3)
$14
Revolver ($300mm)
-- 
-- 
-- 
-- 
Term loan B
1,782
4.7x
(1,782)
-- 
-- 
Repriced term loan B
-- 
-- 
1,782
1,782
4.7x
Capital leases
16
0.0x
16
0.0x
Total secured debt
$1,798
4.7x
$1,798
4.7x
8.250% senior notes due 2020
$550
1.4x
$550
1.4x
Other debt
4
0.0x
4
0.0x
Total debt
$2,352
6.1x
$2,352
6.1x
Net debt
$2,334
6.1x
$2,338
6.1x
LTM operating metrics
Adjusted pro forma EBITDA
$383
$383
PF cash interest expense
124
(13)
110
Capital expenditures
186
186
Credit statistics
Adj. pro forma EBITDA / cash interest
3.1x
3.5x
(Adj. pro forma EBITDA - capex) / cash i
1.6x
1.8x
Pro forma capitalization

8
Summary of Indicative Terms
Borrower:
ADS Waste Holdings, Inc. (the “Company”)
Guarantees:
Same as existing Credit Agreement
Security:
Same as existing Credit Agreement
Lead arranger:
Deutsche Bank Securities
Administrative agent:
Deutsche Bank Trust Company Americas
Facility:
Tranche
Amount
Coupon
OID
LIBOR floor
Maturity
Term Loan B
$1,782mm
L+275
100.0
0.75%
October 2019
Amortization:
Same as existing Credit Agreement
Optional redemption:
101 soft call for first six months
Mandatory prepayments:
Same as existing Credit Agreement
Financial covenants:
None
Other covenants:
Same as existing Credit Agreement
Corporate ratings:
B2 / B

Day
Key milestone
Friday, January 31
st
Lenders’
Call
Thursday, February 6
th
Commitments Due
2
Timeline
January 2014
S
M
T
W
T
F
S
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
1
2
3
4
February 2014
S
2
9
16
23
M
3
10
17
24
T
4
11
18
25
W
5
12
19
26
T
6
13
20
27
F
7
14
21
28
S
8
15
22
1
Denotes holiday
Denotes key date
9

Company Overview and Financial Performance Update

11
Vertically integrated environmental services platform
Collection Services
87 Collection Operations
60 Transfer Stations
42 Landfills
25 Recycling Facilities
Transfer Stations
Recycling Facilities
Landfill Services
YTD 9/30/13 revenue by region
YTD 9/30/13 revenue by type
* All information presented above is for continuing operations as of or YTD
September 30, 2013.

Key Accomplishments in 2013
–
Completed the integration of Veolia ES Solid Waste and identified additional synergies in excess
of original estimates
–
Successfully completed DOJ mandated and other strategic asset divestitures, including exit from
the NY/NJ marketplace
–
Disciplined execution of operational plan
•
new municipal contracts and strategic tuck-in acquisitions
•
disposal and route optimization
•
headcount reductions
•
customer retention
–
Completed seventeen acquisitions in 2013
–
September 2013 YTD revenue from continuing operations of $985.5mm, adjusted pro forma
EBITDA from continuing operations of $277mm and total company cash flows from operations of
$165.4mm
•
price growth of 1.4%, excluding impact of commodity pricing and volume growth of 1.9%
partially offset by closure of Moretown landfill and lower special waste volumes
•
strong cash flows with revolver remaining undrawn at September 30, 2013
–
Outlook for 2013 adjusted pro forma EBITDA from continuing operations is a range of $372mm -
$377mm
12

Performance
Update –
September 2013 vs 2012
YTD Total Company Capital Expenditures
QTD Adjusted Pro forma EBITDA -
Continuing Operations
QTD Revenue -
Continuing Operations
YTD Total Company Adjusted Free Cash Flow
(a)
13
Note: Financials pro forma for Veolia acquisition and presented net of discontinued operations
(a)
Year
to
date
free
cash
flow
–
refer
to
Exhibit
1
for
definition
(b) Indicates % of revenue from continuing operations
(c) Indicates % of revenue from total company
28.0%
(b)
28.9%
(b)
12.9%
(c)
10.3%
(c)
6.1%
(c)
8.6%
(c)

Capital Expenditures –
Total Company
Adjusted Pro forma EBITDA –
Continuing Operations
Revenue –
Continuing Operations
Total Company Adjusted Free Cash Flow
14
Note: Financials pro forma for Veolia acquisition and presented net of discontinued operations
(a)
Free
cash
flow
defined
as
Adjusted
EBITDA
less
capital
expenditures
–
refer
to
Exhibit
1
for
reconciliation
(b) Indicates % of revenue from continuing operations
(c) Indicates % of revenue from total company
Performance
Update –
LTM 9/30/2013 vs LTM 9/30/2012
(a)

Exhibit 1

Adjusted Pro Forma EBITDA Reconciliation
16
$ in millions
Nine Months
Ended
September 30,
2012
Three Months
Ended
December 31,
2011
LTM September
30, 2012
Nine Months
Ended
September 30,
2013
Three Months
Ended
December 31,
2012
LTM September
30, 2013
Net loss
(7.8)
$                  
4.9
$                 
(2.9)
$                  
(81.8)
$                
(189.6)
$               
(271.4)
$               
Less: loss from discontinued operations
(9.9)
                    
(0.4)
                 
(10.3)
                  
(17.3)
                  
(79.3)
                  
(96.5)
                  
Loss from continuing operations
2.1
                     
5.4
                  
7.5
                     
(64.5)
                  
(110.3)
                
(174.8)
                
Additions/deductions:
(Benefit) provision for income taxes
1.6
                     
4.9
                  
6.5
                     
(34.4)
                  
(11.8)
                  
(46.2)
                  
Interest expense 
17.5
                   
5.0
                  
22.4
                   
122.1
                  
32.0
                   
154.1
                  
Depreciation and amortization 
61.4
                   
20.4
                 
81.8
                   
209.8
                  
42.7
                   
252.5
                  
Accretion on landfill retirement obligations
4.9
                     
1.7
                  
6.6
                     
11.3
                   
3.2
                     
14.5
                   
Accretion of loss contract
-
                     
-
                  
-
                     
0.3
                     
1.2
                     
1.5
                     
-
                     
-
                  
-
                     
-
                     
-
                     
-
                     
EBITDA from continuing operations
87.4
                   
37.3
                 
124.7
                  
244.5
                  
(42.9)
                  
201.6
                  
Pro forma adjustments:
Acquisition and development costs
2.9
                     
0.4
                  
3.3
                     
1.0
                     
(1.6)
                    
(0.7)
                    
Stock option expense
0.9
                     
0.3
                  
1.2
                     
3.0
                     
0.4
                     
3.4
                     
Earnings in equity investee
-
                     
-
                  
-
                     
(0.8)
                    
(0.2)
                    
(0.9)
                    
Restructuring charges
-
                     
-
                  
-
                     
4.1
                     
9.9
                     
14.0
                   
Interest income non-cash
(0.1)
                    
(0.0)
                 
(0.1)
                    
(0.2)
                    
(0.0)
                    
(0.2)
                    
Other non-cash earnings
(0.4)
                    
(0.4)
                 
(0.8)
                    
-
                     
(0.2)
                    
(0.2)
                    
Cash dividends received
-
                     
-
                  
-
                     
0.4
                     
-
                     
0.4
                     
Impairment of assets
-
                     
-
                  
-
                     
-
                     
43.7
                   
43.7
                   
Loss on sale of assets
0.7
                     
(8.8)
                 
(8.1)
                    
0.6
                     
1.5
                     
2.1
                     
Debt conversion cost
-
                     
0.0
                  
0.0
                     
-
                     
9.4
                     
9.4
                     
Acquisition and integration costs
1.2
                     
-
                  
1.2
                     
21.2
                   
32.2
                   
53.4
                   
Adjusted EBITDA from continuing operations
92.6
                   
28.9
                 
121.5
                  
273.9
                  
52.1
                   
326.0
                  
Veolia acquisition - continuing operations
180.1
                  
65.6
                 
245.7
                  
-
                     
38.3
                   
38.3
                   
Other acquisitions/muni contracts
0.5
                     
0.4
                  
1.0
                     
2.7
                     
2.2
                     
4.9
                     
Estimated synergies
-
                     
-
                  
34.9
                   
-
                     
-
                     
34.9
                   
Synergies achieved
-
                     
-
                  
-
                     
-
                     
-
                     
(20.6)
                  
Proforma Adjusted EBITDA
273.2
$                
95.0
$               
403.1
$                
276.6
$                
92.6
$                  
383.4
$                
Revenue from continuing operations
341.0
$                
112.9
$             
454.0
$                
985.5
$                
196.9
$                
1,182.4
$             
Adjusted EBITDA from continuing operations
92.6
$                  
28.9
$               
121.5
$                
273.9
$                
52.1
$                  
326.0
$                
Adjusted pro forma EBITDA margin from continuing operations
31.5%
29.3%
Pro forma adjusted Revenue:
Revenue from continuing operations
341.0
$                
112.9
$             
454.0
$                
985.5
$                
196.9
$                
1,182.4
$             
Impact of Veolia acquisition as if January 1, 2011 acquisition date
631.2
                  
192.8
               
824.0
                  
-
                     
124.6
                  
124.6
                  
Pro forma revenue from continuing operations
972.2
$                
305.7
$             
1,277.9
$             
985.5
$                
321.5
$                
1,307.0
$             
Impact of acquisitions/net cost savings expected to be realized in next
12 months:

Adjusted Free Cash Flow Reconciliation September YTD
17
$ in millions
ADS & IWS
2012
Veolia 2012
2012(a)
2013
Net cash provided by operating activities - total company
74.8
$              
128.6
$           
203.4
$           
165.4
$           
Capital expenditures - total company
(60.8)
              
(79.5)
              
(140.4)
             
(112.2)
             
Proceeds from the sale of property and equipment
1.1
                 
2.1
                 
3.2
                 
0.4
                 
Free cash flow
15.1
                
51.1
                
66.2
                
53.6
                
Restructuring payments
-
                 
-
                     
4.1
                 
Bonuses paid on behalf of Veolia
-
                     
9.9
                 
Costs associated with integration of Veolia acquisition
-
                 
-
                     
25.2
                
Adjusted free cash flow
15.1
$              
51.1
$              
66.2
$              
92.8
$              
Revenue from continuing operations
972.2
$           
985.5
$           
Revenue from discontinued operations
115.3
              
98.7
                
Total company revenue
1,087.5
$         
1,084.2
$         
(a) Pro forma total company amounts presented
Nine Months Ended September 30,

Adjusted Free Cash Flow Reconciliation September LTM
18
$ in millions
2012 (a)
2013
Adjusted pro forma EBITDA continuing operations
403.1
$           
383.4
$           
Adjusted pro forma EBITDA discontinued operations
4.6
                 
1.0
                 
Capital expenditures total company
(208.0)
             
(186.4)
             
Adjusted free cash flow
199.7
$           
198.1
$           
(a) Pro forma total company amounts presented
LTM September 30,