-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, C9LDk78Pd1ZvTiJ2neBix0val/dRvikoTIj9Jmxtt9RK0vpgYImE0qP7Q7kxLAFo 2BipFFYK58xslfRFv7K9SQ== 0000881655-98-000001.txt : 19980518 0000881655-98-000001.hdr.sgml : 19980518 ACCESSION NUMBER: 0000881655-98-000001 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19980331 FILED AS OF DATE: 19980515 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: AMERICAN DISPOSAL SERVICES INC CENTRAL INDEX KEY: 0000881655 STANDARD INDUSTRIAL CLASSIFICATION: REFUSE SYSTEMS [4953] IRS NUMBER: 133858494 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 000-28652 FILM NUMBER: 98622799 BUSINESS ADDRESS: STREET 1: 745 MCCLINTOK DR STREET 2: SUITE 305 CITY: BURR RIDGE STATE: IL ZIP: 60521 BUSINESS PHONE: 7086551105 MAIL ADDRESS: STREET 1: 745 MCCLINTOCK DRIVE STREET 2: SUITE 305 CITY: BURR RIDGE STATE: IL ZIP: 60521 10-Q 1 FORM 10-Q =============================================================================== 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 =============================================================================== 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 PART I. FINANCIAL INFORMATION AMERICAN DISPOSAL SERVICES, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Dollars in Thousands)
March 31, 1998 December 31, (Unaudited) 1997 ----------------- ----------------- 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 ================= =================
See accompanying notes. 3 AMERICAN DISPOSAL SERVICES, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Dollars in Thousands, Except per Share Data) (Unaudited)
Three months ended March 31, 1998 1997 --------------- --------------- 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 =============== ===============
See accompanying notes. 4 AMERICAN DISPOSAL SERVICES, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Dollars in Thousands) (Unaudited)
Three months ended March 31, 1998 1997 ------------- ------------- 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
See accompanying notes. 5 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):
Three months ended March 31, 1998 1997 -------------- -------------- 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 ============== ==============
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 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):
Three months ended March 31, 1998 1997 -------------- -------------- 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
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 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 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:
Three Months Ended March 31, 1998 1997 ------------ ------------ 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% ============ ============
(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 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 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 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 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 EX-27 2 EXHIBIT 27
5 1000 3-MOS DEC-31-1998 JAN-01-1998 MAR-31-1998 3,293 0 24,574 0 0 31,871 187,346 0 444,636 34,354 38,406 0 0 0 342,150 444,636 0 45,030 24,766 36,897 0 0 880 7,336 2,861 4,475 0 0 0 4,475 0.22 0.21
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