U.S. Markets closed

Covanta Holding Corporation Reports 2019 Third Quarter Results And Affirms Guidance

MORRISTOWN, N.J., Oct. 24, 2019 /PRNewswire/ -- Covanta Holding Corporation (CVA) ("Covanta" or the "Company"), a world leader in sustainable waste and energy solutions, reported financial results today for the three and nine months ended September 30, 2019.

Covanta Logo (PRNewsFoto/Covanta)

Three Months Ended
September 30,


2019


2018


(Unaudited, $ in millions)

Revenue

$465


$456

Net income (loss)

$14


$(27)

Adjusted EBITDA

$125


$122

Net cash provided by operating activities

$25


$84

Free Cash Flow

$22


$85

Reconciliations of non-GAAP measures can be found in the exhibits to this press release.

"Our third quarter results reflect solid operations and a strong waste market, which drove favorable year-over-year performance," said Covanta's President and CEO Stephen J. Jones. "Waste processing and energy production are tracking toward record levels this year, and we continue to push waste pricing, with same store tip fees up 4% in the quarter. While this has been a challenging year from a commodity price perspective, we remain focused on the areas we control, and I am very proud of our continued operational performance, as well as our progress on key strategic initiatives."

More detail on our third quarter results can be found in the exhibits to this release and in our third quarter 2019 earnings presentation found in the Investor Relations section of the Covanta website at www.covanta.com.

2019 Guidance
The Company affirmed 2019 guidance for the following key metrics:

(In millions)

Metric

2019 Guidance

2018
Actual

Adjusted EBITDA

$420 - $445

$457

Free Cash Flow

$120 - $145

$100

Reconciliations of non-GAAP measures can be found in the exhibits to this press release.

Guidance as of October 24, 2019.

Conference Call Information
Covanta will host a conference call at 8:30 AM (Eastern) on Friday, October 25, 2019 to discuss its third quarter results.

The conference call will begin with prepared remarks, which will be followed by a question and answer session.  To participate, please dial 1-833-238-7947 approximately 10 minutes prior to the scheduled start of the call.  If calling outside of the United States, please dial 1-647-689-4195. Please request the "Covanta Holding Corporation Earnings Conference Call" when prompted by the conference call operator. The conference call will also be webcast live from the Investor Relations section of the Company's website.  A presentation will be made available during the call and will be found in the Investor Relations section of the Covanta website at www.covanta.com.

An archived webcast will be available two hours after the end of the conference call and can be accessed through the Investor Relations section of the Covanta website at www.covanta.com.

About Covanta
Covanta is a world leader in providing sustainable waste and energy solutions.  Annually, Covanta's modern Energy-from-Waste ("EfW") facilities safely convert approximately 21 million tons of waste from municipalities and businesses into clean, renewable electricity to power one million homes and recycle over 600,000 tons of metal. Through a vast network of treatment and recycling facilities, Covanta also provides comprehensive industrial material management services to companies seeking solutions to some of today's most complex environmental challenges. For more information, visit www.covanta.com.

Cautionary Note Regarding Forward-Looking Statements
Certain statements in this press release may constitute "forward-looking" statements as defined in Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), Section 21E of the Securities Exchange Act of 1934 (the "Exchange Act"), the Private Securities Litigation Reform Act of 1995 (the "PSLRA") or in releases made by the Securities and Exchange Commission ("SEC"), all as may be amended from time to time. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of Covanta Holding Corporation and its subsidiaries ("Covanta") or industry results, to differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements.  Statements that are not historical fact are forward-looking statements.  For additional information see the Cautionary Note Regarding Forward-Looking Statements at the end of the Exhibits.

Covanta Holding Corporation




Exhibit 1

Consolidated Statements of Operations












Three Months Ended
September 30,


Nine Months Ended
September 30,



2019


2018


2019


2018












(Unaudited)
(In millions, except per share amounts)

OPERATING REVENUE:









Waste and service revenue


$

353



$

332



$

1,039



$

977


Energy revenue


81



81



247



257


Recycled metals revenue


19



23



61



72


Other operating revenue


12



20



38



62


Total operating revenue


465



456



1,385



1,368


OPERATING EXPENSE:









Plant operating expense


325



308



1,038



987


Other operating expense, net


10



17



43



44


General and administrative expense


29



27



90



85


Depreciation and amortization expense


55



53



165



162


Impairment charges (a)


2



49



3



86


Total operating expense


421



454



1,339



1,364


Operating income


44



2



46



4


OTHER (EXPENSE) INCOME:









Interest expense


(36)



(37)



(108)



(111)


Net gain on sale of business and investments (a)


1



7



49



217


Loss on extinguishment of debt (a)




(3)





(3)


Other (expense) income, net


(1)





1



(1)


Total other (expense) income


(36)



(33)



(58)



102


Income (loss) before income tax benefit and equity in net income 
     from unconsolidated investments


8



(31)



(12)



106


Income tax benefit


5



3



6



34


Equity in net income from unconsolidated investments


1



1



4



3


Net income (loss)


$

14



$

(27)



$

(2)



$

143











Weighted Average Common Shares Outstanding:









Basic


131



130



131



130


Diluted


133



130



131



132











Earnings (Loss) Per Share:









Basic


$

0.11



$

(0.21)



$

(0.02)



$

1.10


Diluted


$

0.10



$

(0.21)



$

(0.02)



$

1.09











Cash Dividend Declared Per Share


$

0.25



$

0.25



$

0.75



$

0.75



(a) For additional information, see Exhibit 4 of this Press Release.

 

Covanta Holding Corporation

Exhibit 2

Consolidated Balance Sheets





As of


September 30,
 2019


December 31,
 2018






(Unaudited)



ASSETS

(In millions, except per share amounts)

Current:




Cash and cash equivalents

$

65



$

58


Restricted funds held in trust

25



39


Receivables (less allowances of $8 and $8, respectively)

307



338


Prepaid expenses and other current assets

78



64


Total Current Assets

475



499


Property, plant and equipment, net

2,465



2,514


Restricted funds held in trust

8



8


Intangible assets, net

263



279


Goodwill

321



321


Other assets

266



222


Total Assets

$

3,798



$

3,843


LIABILITIES AND EQUITY




Current:




Current portion of long-term debt

$

16



$

15


Current portion of project debt

8



19


Accounts payable

63



76


Accrued expenses and other current liabilities

252



333


Total Current Liabilities

339



443


Long-term debt

2,457



2,327


Project debt

126



133


Deferred income taxes

372



378


Other liabilities

127



75


Total Liabilities

3,421



3,356


Equity:




Preferred stock ($0.10 par value; authorized 10 shares; none issued and 
     outstanding)




Common stock ($0.10 par value; authorized 250 shares; issued 136 shares, 
     outstanding 131 shares)

14



14


Additional paid-in capital

853



841


Accumulated other comprehensive loss

(51)



(33)


Accumulated deficit

(439)



(334)


Treasury stock, at par



(1)


Total Equity

377



487


Total Liabilities and Equity

$

3,798



$

3,843


 

Covanta Holding Corporation

Exhibit 3

Consolidated Statements of Cash Flow





Nine Months Ended
September 30,


2019


2018






(Unaudited, in millions)

OPERATING ACTIVITIES:




Net (loss) income

$

(2)



$

143


Adjustments to reconcile net (loss) income to net cash provided by operating activities:




Depreciation and amortization expense

165



162


Amortization of deferred debt financing costs

3



4


Net gain on sale of business and investments (a)

(49)



(217)


Impairment charges (a)

3



86


Loss on extinguishment of debt (a)



3


Stock-based compensation expense

20



18


Equity in net income from unconsolidated investments

(4)



(3)


Deferred income taxes

(9)



(32)


Dividends from unconsolidated investments

5



1


Other, net

5



(5)


Change in working capital, net of effects of acquisitions and dispositions

(33)



(14)


Changes in noncurrent assets and liabilities, net

8



1


Net cash provided by operating activities

112



147


INVESTING ACTIVITIES:




Purchase of property, plant and equipment

(121)



(158)


Acquisition of businesses, net of cash acquired

2



(50)


Proceeds from the sale of assets, net of restricted cash

28



125


Property insurance proceeds



7


Payment of indemnification claim related to sale of asset



(7)


Investment in equity affiliate

(9)




Other, net

(1)



(4)


Net cash used in investing activities

(101)



(87)


FINANCING ACTIVITIES:




Proceeds from borrowings on long-term debt

75



765


Proceeds from borrowings on revolving credit facility

441



474


Payments on long-term debt

(12)



(532)


Payments on revolving credit facility

(375)



(713)


Payments on project debt

(16)



(21)


Payment of deferred financing costs

(1)



(9)


Cash dividends paid to stockholders

(100)



(98)


Payment of insurance premium financing

(20)



(20)


Other, net

(8)



(4)


Net cash used in financing activities

(16)



(158)


Effect of exchange rate changes on cash, cash equivalents and restricted cash

(2)



2


Net decrease in cash, cash equivalents and restricted cash

(7)



(96)


Cash, cash equivalents and restricted cash at beginning of period

105



194


Cash, cash equivalents and restricted cash at end of period

$

98



$

98






(a) For additional information, see Exhibit 4 of this Press Release.

 

Covanta Holding Corporation




Exhibit 4

Consolidated Reconciliation of Net Income (Loss) and Net Cash Provided by Operating Activities 
     to Adjusted EBITDA








Three Months Ended
September 30,


Nine Months Ended
September 30,



2019


2018


2019


2018












(Unaudited, in millions)

Net income (loss)


$

14



$

(27)



$

(2)



$

143


Depreciation and amortization expense


55



53



165



162


Interest expense


36



37



108



111


Income tax benefit


(5)



(3)



(6)



(34)


Impairment charges (a)


2



49



3



86


Net gain on sale of businesses and investments (b)


(1)



(7)



(49)



(217)


Loss on extinguishment of debt (c)




3





3


Property insurance recoveries, net








(7)


Capital type expenditures at client owned facilities (d)


8



5



28



28


Debt service billings in excess of revenue recognized


(1)



(1)



(1)




Business development and transaction costs


1



1



2



4


Severance and reorganization costs


2



1



6



5


Stock-based compensation expense


5



4



20



18


Adjustments to reflect Adjusted EBITDA from unconsolidated 
     investments


6



5



18



16


Other (e)


3



2



11



7


Adjusted EBITDA


$

125



$

122



$

303



$

325


Capital type expenditures at client owned facilities (d)


(8)



(5)



(28)



(28)


Cash paid for interest


(64)



(42)



(123)



(115)


Cash paid for taxes, net


(1)





(5)



(2)


Equity in net income from unconsolidated investments


(1)



(1)



(4)



(3)


Adjustments to reflect Adjusted EBITDA from unconsolidated 
     investments


(6)



(5)



(18)



(16)


Dividends from unconsolidated investments






5



1


Adjustment for working capital and other


(20)



15



(18)



(15)


Net cash provided by operating activities


$

25



$

84



$

112



$

147



(a)

During the three and nine months ended September 30, 2018, we identified an indicator of impairment associated with certain of our EfW facilities and recorded a non-cash impairment charge of $49 million and $86 million, respectively, to reduce the carrying value of the facilities to their estimated fair value.

(b)

During the nine months ended September 30, 2019, we recorded a $57 million gain related to the Rookery South Energy Recovery Facility development project and a $11 million loss related to the divestiture of our Springfield and Pittsfield EfW facilities.


During the three and nine months ended September 30, 2018, we recorded a $7 million gain on the sale of our equity interests in a hydroelectric facility. During the nine months ended September 30, 2018 we recorded a $204 million gain on the sale of 50% of our Dublin project to our joint venture with the Green Investment Group Limited and a $6 million gain on the sale of our remaining interests in China.

(c)

During the three and nine months ended September 30, 2018, we recorded a $3 million loss related to the refinancing of our tax-exempt bonds.

(d)

Adjustment for impact of adoption of FASB ASC 853 - Service Concession Arrangements. These types of capital equipment related expenditures at our service fee operated facilities were historically capitalized prior to adoption of this new accounting standard effective January 1, 2015 and are capitalized at facilities that we own.

(e)

Includes certain other items that are added back under the definition of Adjusted EBITDA in Covanta Energy, LLC's credit agreement.

 

Covanta Holding Corporation





Exhibit 5

Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow



Three Months Ended
September 30,


Nine Months Ended
September 30,


Full Year
Estimated 2019


2019


2018


2019


2018













(Unaudited, in millions)



Net cash provided by operating activities

$

25



$

84



$

112



$

147



$225 - $255

Add: Changes in restricted funds - operating (a)

13



18



18



7



15 - 20

Less: Maintenance capital expenditures (b)

(16)



(17)



(81)



(95)



(130 - 120)

Free Cash Flow

$

22



$

85



$

49



$

59



$120 - $145




(a)  Adjustment for the impact of the adoption of ASU 2016-18 effective January 1, 2018. As a result of 
       adoption, the statement of cash flows explains the change during the period in the total of cash, cash 
       equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, 
       changes in restricted funds are eliminated in arriving at net cash, cash equivalents and restricted funds 
      
provided by operating activities.
















(b)   Purchases of property, plant and equipment are also referred to as capital expenditures. Capital 
        expenditures that primarily maintain existing facilities are classified as maintenance capital 
        expenditures. The following table provides the components of total purchases of property, plant and 
        equipment:










Three Months Ended
September 30,


Nine Months Ended
September 30,




2019


2018


2019


2018



Maintenance capital expenditures

$

(16)



$

(17)



$

(81)



$

(95)




Net maintenance capital expenditures paid but 
   incurred in prior periods

(1)



2



(7)



(10)




Capital expenditures associated with construction 
     of Dublin EfW facility



(1)





(22)




Capital expenditures associated with the New York 
     City MTS contract

(2)



(9)



(19)



(9)




Capital expenditures associated with organic 
     growth initiatives

(9)



(3)



(14)



(18)




Total capital expenditures associated with growth 
   investments (c)

(11)



(13)



(33)



(49)




Capital expenditures associated with property 
   insurance events







(4)




Total purchases of property, plant and equipment

$

(28)



$

(28)



$

(121)



$

(158)














(c)  Total growth investments represents investments in growth opportunities, including organic growth 
       initiatives, technology, business development, and other similar expenditures.






Capital expenditures associated with growth 
     investments

$

(11)



$

(13)



$

(33)



$

(49)




UK business development projects



(3)



(1)



(4)




Investment in equity affiliate

(1)





(9)






Asset and business acquisitions, net of cash acquired



(46)



2



(50)




Total growth investments

$

(12)



$

(62)



$

(41)



$

(103)




 

Covanta Holding Corporation




Exhibit 6

Supplemental Information





(Unaudited, $ in millions)












Three Months Ended
September 30,



2019


2018

REVENUE:





Waste and service revenue:





EfW tip fees


$

163



$

155


EfW service fees


114



104


Environmental services (a)


36



36


Municipal services (b)


64



55


Other (c)


8



9


Intercompany (d)


(34)



(27)


Total waste and service


353



332


Energy revenue:





Energy sales


66



67


Capacity


9



13


Other (e)


6




Total energy


81



81


Recycled metals revenue:





Ferrous


11



14


Non-ferrous


8



9


Total recycled metals


19



23


Other revenue (f)


12



20


Total revenue


$

465



$

456







OPERATING EXPENSE:





Plant operating expense:





Plant maintenance


$

62



$

55


Other plant operating expense


262



253


Total plant operating expense


325



308


Other operating expense


10



17


General and administrative


29



27


Depreciation and amortization


55



53


Impairment charges


2



49


Total operating expense


$

421



$

454







Operating income


$

44



$

2







Plus: impairment charges


2



49


Operating income excluding impairment charges


$

46



$

51







(a) Includes the operation of material processing facilities and related services provided by our Covanta Environmental Solutions business.

(b) Consists of transfer stations and the transportation component of our NYC Marine Transfer Station contract.

(c) Includes waste brokerage, debt service and other revenue not directly related to EfW waste processing activities.

(d) Consists of elimination of intercompany transactions primarily relating to transfer stations.

(e) Primarily components of wholesale load serving revenue not included in Energy sales line, such as transmission and ancillaries.

(f) Consists primarily of construction revenue.

Note: Certain amounts may not total due to rounding.

 

Covanta Holding Corporation









Exhibit 7

Revenue and Operating Income Changes - Q3 2018 to Q3 2019







(Unaudited, $ in millions)




























Contract Transitions (b)








Q3 2018


Organic
Growth (a)


%


Waste


Transactions (c)


Total
Changes


Q3 2019

REVENUE:














Waste and service:














EfW tip fees

$

155



$

10



6.5

%


$

4



$

(6)



$

8



$

163


EfW service fees

104



2



2.2

%


(5)



13



10



114


Environmental services

36





%








36


Municipal services

55



3



5.7

%




6



9



64


Other revenue

9



1



6.2

%


(1)







8


Intercompany

(27)



(5)







(1)



(6)



(34)


Total waste and service

332



11



3.4

%


(1)



11



21



353


Energy:














Energy sales

67



(2)



(3.1)

%


2



(1)



(1)



66


Capacity

13



(3)



(26.4)

%






(4)



9


Other



6



%






6



6


Total energy

81





0.3

%


2



(2)



1



81


Recycled metals:














Ferrous

14



(3)



(21.0)

%






(3)



11


Non-ferrous

9



(1)



(15.4)

%






(1)



8


Total recycled metals

23



(4)



(18.8)

%






(4)



19


Other revenue

20



(9)



(43.5)

%






(9)



12


Total revenue

$

456



$

(1)



(0.3)

%


$

1



$

10



$

9



$

465
















OPERATING EXPENSE:














Plant operating expense:














Plant maintenance

$

55



$

7



12.4

%


$



$



$

7



$

62


Other plant operating expense

253



3



1.0

%


1



4



8



262


Total plant operating expense

308



9



3.1

%


1



5



15



325


Other operating expense

17



(6)









(6)



10


General and administrative

27



3









3



29


Depreciation and amortization

53



1







2



2



55


Total operating expense

$

405



$

7





$

1



$

7



$

15



$

419


Operating income (loss) excluding 
     impairment charges

$

51



$

(8)





$

(1)



$

3



$

(6)



$

46
















(a) Reflects performance on a comparable period-over-period basis, excluding the impacts of transitions and transactions.

(b) Includes the impact of the expiration of: (1) long-term major waste and service contracts, most typically representing the transition to a new 
      contract structure, and (2) long-term energy contracts.

(c) Includes the impacts of acquisitions, divestitures, new projects and the addition or loss of operating contracts.













Note: Certain amounts may not total due to rounding.

 

Operating Metrics



Exhibit 8

(Unaudited)





Three Months Ended
September 30,


2019


2018

EfW Waste




Tons: (in millions)




Tip fee- contracted

2.28



2.25


Tip fee- uncontracted

0.48



0.46


Service fee

2.74



2.37


Total tons

5.49



5.08


Tip Fee revenue per ton:




Tip fee- contracted

$

53.93



$

52.36


Tip fee- uncontracted

$

85.22



$

80.27


Average tip fee

$

59.36



$

57.13


EfW Energy




Energy sales: (MWh in millions)




Contracted

0.55



0.53


Hedged

0.76



0.77


Market

0.38



0.33


Total energy

1.69



1.62


Market sales by geography: (MWh in millions)




PJM East

0.2



0.1


NEPOOL

0.1



0.1


NYISO




Other

0.1



0.1


Revenue per MWh (excludes capacity and other energy revenue):




Contracted

$

62.77



$

65.41


Hedged

$

28.69



$

28.24


Market

$

25.36



$

33.66


Average revenue per MWh

$

39.08



$

41.48


Metals




Tons Recovered: (in thousands)




Ferrous

111.9



111.4


Non-ferrous

12.8



12.9


Tons Sold: (in thousands)




Ferrous

96.4



89.8


Non-ferrous

8.2



6.8


Revenue per ton:




Ferrous

$

118



$

159


Non-ferrous

$

984



$

1,360


EfW plant operating expense: ($ in millions)




Plant operating expense - gross

$

260



$

240


Less: Client pass-through costs

(12)



(12)


Less: REC sales - contra-expense

(4)



(3)


Plant operating expense, net

$

244



$

224






Note: Waste volume includes solid tons only. Metals and energy volume are presented net of client revenue sharing. Steam sales are converted to MWh equivalent at an assumed average rate of 11 klbs of steam / MWh.  Hedged energy sales includes the energy component of wholesale load serving. Uncontracted energy sales include sales under PPAs that are based on market prices.

Note: Certain amounts may not total due to rounding.





Discussion of Non-GAAP Financial Measures

We use a number of different financial measures, both United States generally accepted accounting principles ("GAAP") and non-GAAP, in assessing the overall performance of our business.  To supplement our assessment of results prepared in accordance with GAAP, we use the measures of Adjusted EBITDA and Free Cash Flow, which are non-GAAP financial measures as defined by the Securities and Exchange Commission.  The non-GAAP financial measures of Adjusted EBITDA and Free Cash Flow as described below, and used in the tables above, are not intended as a substitute or as an alternative to net income, cash flow provided by operating activities or diluted earnings per share as indicators of our performance or liquidity or any other measures of performance or liquidity derived in accordance with GAAP.  In addition, our non-GAAP financial measures may be different from non-GAAP measures used by other companies, limiting their usefulness for comparison purposes.

The presentations of Adjusted EBITDA and Free Cash Flow are intended to enhance the usefulness of our financial information by providing measures which management internally use to assess and evaluate the overall performance of its business and those of possible acquisition candidates, and highlight trends in the overall business.

Adjusted EBITDA

We use Adjusted EBITDA to provide additional ways of viewing aspects of operations that, when viewed with the GAAP results provide a more complete understanding of our core business. As we define it, Adjusted EBITDA represents earnings before interest, taxes, depreciation and amortization, as adjusted for additional items subtracted from or added to net income including the effects of impairment losses, gains or losses on sales, dispositions or retirements of assets, adjustments to reflect the Adjusted EBITDA from our unconsolidated investments, adjustments to exclude significant unusual or non-recurring items that are not directly related to our operating performance plus adjustments to capital type expenses for our service fee facilities in line with our credit agreements. We adjust for these items in our Adjusted EBITDA as our management believes that these items would distort their ability to efficiently view and assess our core operating trends. As larger parts of our business are conducted through unconsolidated investments that we do not control, we adjust EBITDA for our proportionate share of the entities depreciation and amortization, interest expense and taxes in order to improve comparability to the Adjusted EBITDA of our wholly owned entities.

In order to provide a meaningful basis for comparison, we are providing information with respect to our Adjusted EBITDA for the three and nine months ended September 30, 2019 and 2018, reconciled for each such period to net income and cash flow provided by operating activities, which are believed to be the most directly comparable measures under GAAP.

Our projections of the proportional contribution of our interests in joint ventures to our Adjusted EBITDA and Free Cash Flow are not based on GAAP net income/loss or cash flow provided by operating activities, respectively, and are anticipated to be adjusted to exclude the effects of events or circumstances in 2019 that are not representative or indicative of our results of operations and that are not currently determinable. Due to the uncertainty of the likelihood, amount and timing of any such adjusting items, we do not have information available to provide a quantitative reconciliation of projected net income/loss to an Adjusted EBITDA projection.

Free Cash Flow

Free Cash Flow is defined as cash flow provided by operating activities, plus changes in operating restricted funds, less maintenance capital expenditures, which are capital expenditures primarily to maintain our existing facilities.

We use the non-GAAP measure of Free Cash Flow as a criterion of liquidity and performance-based components of employee compensation.  We use Free Cash Flow as a measure of liquidity to determine amounts we can reinvest in our core businesses, such as amounts available to make acquisitions, invest in construction of new projects, make principal payments on debt, or amounts we can return to our stockholders through dividends and/or stock repurchases.

In order to provide a meaningful basis for comparison, we are providing information with respect to our Free Cash Flow for the three and nine months ended September 30, 2019 and 2018, reconciled for each such period to cash flow provided by operating activities, which we believe to be the most directly comparable measure under GAAP.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

Certain statements in this press release may constitute "forward-looking" statements as defined in Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), Section 21E of the Securities Exchange Act of 1934 (the "Exchange Act"), the Private Securities Litigation Reform Act of 1995 (the "PSLRA") or in releases made by the Securities and Exchange Commission ("SEC"), all as may be amended from time to time.  Such forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of Covanta Holding Corporation and its subsidiaries ("Covanta") or industry results, to differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements.  Statements that are not historical fact are forward-looking statements.  Forward-looking statements can be identified by, among other things, the use of forward-looking language, such as the words "plan," "believe," "expect," "anticipate," "intend," "estimate," "project," "may," "will," "would," "could," "should," "seeks," or "scheduled to," or other similar words, or the negative of these terms or other variations of these terms or comparable language, or by discussion of strategy or intentions.  These cautionary statements are being made pursuant to the Securities Act, the Exchange Act and the PSLRA with the intention of obtaining the benefits of the "safe harbor" provisions of such laws.  Covanta cautions investors that any forward-looking statements made by Covanta are not guarantees or indicative of future performance.  Important factors, risks, and uncertainties that could cause actual results of Covanta and our joint ventures to differ materially from those forward-looking statements include, but are not limited to:

  • seasonal or long-term fluctuations in the prices of energy, waste disposal, scrap metal and commodities, and Covanta's ability to renew or replace expiring contracts at comparable prices and with other acceptable terms;
  • adoption of new laws and regulations in the United States and abroad, including energy laws, tax laws, environmental laws, labor laws and healthcare laws;
  • advances in technology;
  • difficulties in the operation of our facilities, including fuel supply and energy delivery interruptions, failure to obtain regulatory approvals, equipment failures, labor disputes and work stoppages, and weather interference and catastrophic events;
  • failure to maintain historical performance levels at Covanta's facilities and Covanta's ability to retain the rights to operate facilities Covanta does not own;
  • Covanta's and the joint ventures ability to avoid adverse publicity or reputational damage relating to its business;
  • difficulties in the financing, development and construction of new projects and expansions, including increased construction costs and delays;
  • Covanta's ability to realize the benefits of long-term business development and bear the costs of business development over time;
  • Covanta's ability to utilize net operating loss carryforwards;
  • limits of insurance coverage;
  • Covanta's ability to avoid defaults under its long-term contracts;
  • performance of third parties under its contracts and such third parties' observance of laws and regulations;
  • concentration of suppliers and customers;
  • geographic concentration of facilities;
  • increased competitiveness in the energy and waste industries;
  • changes in foreign currency exchange rates;
  • limitations imposed by Covanta's existing indebtedness and its ability to perform its financial obligations and guarantees and to refinance its existing indebtedness;
  • exposure to counterparty credit risk and instability of financial institutions in connection with financing transactions;
  • the scalability of its business;
  • restrictions in its certificate of incorporation and debt documents regarding strategic alternatives;
  • failures of disclosure controls and procedures and internal controls over financial reporting;
  • Covanta's and the joint ventures ability to attract and retain talented people;
  • general economic conditions in the United States and abroad, including the availability of credit and debt financing; and
  • other risks and uncertainties affecting Covanta's businesses described periodic securities filings by Covanta with the SEC.

Although Covanta believes that its plans, cost estimates, returns on investments, intentions and expectations reflected in or suggested by such forward-looking statements are reasonable, actual results could differ materially from a projection or assumption in any forward-looking statements. Covanta's and the joint ventures future financial condition and results of operations, as well as any forward-looking statements, are subject to change and to inherent risks and uncertainties.  The forward-looking statements contained in this press release are made only as of the date hereof and Covanta does not have, or undertake, any obligation to update or revise any forward-looking statements whether as a result of new information, subsequent events or otherwise, unless otherwise required by law.

Cision

View original content to download multimedia:http://www.prnewswire.com/news-releases/covanta-holding-corporation-reports-2019-third-quarter-results-and-affirms-guidance-300944930.html