MORRISTOWN, N.J., Feb. 18,
2021 /PRNewswire/ -- Covanta Holding Corporation (NYSE: CVA)
("Covanta" or the "Company"), a world leader in sustainable waste
and energy solutions, reported financial results today for the year
ended December 31, 2020.
|
Year Ended
December 31,
|
|
2020
|
|
2019
|
|
|
|
|
|
(Unaudited, $ in
millions)
|
Revenue
|
$1,904
|
|
$1,870
|
Net (loss)
income
|
$(28)
|
|
$10
|
Adjusted
EBITDA
|
$424
|
|
$428
|
Net cash provided by
operating activities
|
$254
|
|
$226
|
Free Cash
Flow
|
$95
|
|
$140
|
|
Reconciliations of
non-GAAP measures can be found in the exhibits to this press
release.
|
Key Highlights
- Strategic review progressing, with initial implementation steps
to be announced by mid-year 2021
- Protos project reached financial close in Q4, marking fourth UK
project in construction
- Resilient business model minimized financial impact of the
pandemic in 2020
- Reestablishing guidance for Adjusted EBITDA and Free Cash Flow
for 2021
"Covanta's 2020 results highlighted the underlying resilience of
our business model and the capabilities of our incredible operating
team," said Michael Ranger,
President and CEO. "Waste flows in our markets have largely
returned to pre-pandemic levels and we've seen recent strength in
the recycled metal markets, both of which are adding momentum as we
look ahead to 2021. Our strategic review is progressing and
we look forward to announcing concrete steps as they are developed
and executed in the coming quarters."
More detail on our fourth quarter results can be found in the
exhibits to this release and in our fourth quarter 2020 earnings
presentation found in the Investor Relations section of the Covanta
website at www.covanta.com.
2021 Guidance
The Company established 2021 guidance for the following key
metrics:
($ in millions)
Metric
|
2020
Actual
|
2021
Guidance
Range
|
Adjusted
EBITDA
|
$424
|
$435 -
$465
|
Free Cash
Flow
|
$95
|
$100 -
$140
|
|
Reconciliations of
non-GAAP measures can be found in the exhibits to this press
release.
|
Guidance as of
February 19, 2021.
|
Conference Call Information
Covanta will host a conference call at 8:30 AM (Eastern) on Friday, February 19,
2021 to discuss its fourth quarter results.
The conference call will begin with prepared remarks, which will
be followed by a question and answer session. To participate
on the live call, please dial 1-888-317-6003 (US) or
1-412-317-6061 (international) approximately 15 minutes
prior to the scheduled start of the call and enter the passcode
3286737. 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 Waste-to-Energy
("WtE") facilities safely convert approximately 21 million tons of
waste from municipalities and businesses into clean, renewable
electricity to power one million homes and recycle 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
December 31,
|
|
Twelve Months
Ended
December 31,
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited)
(In millions, except per
share amounts)
|
OPERATING
REVENUE:
|
|
|
|
|
|
|
|
|
Waste and service
revenue
|
|
$
|
356
|
|
|
$
|
354
|
|
|
$
|
1,412
|
|
|
$
|
1,393
|
|
Energy
revenue
|
|
93
|
|
|
82
|
|
|
357
|
|
|
329
|
|
Recycled metals
revenue
|
|
24
|
|
|
25
|
|
|
81
|
|
|
86
|
|
Other operating
revenue
|
|
18
|
|
|
24
|
|
|
54
|
|
|
62
|
|
Total operating
revenue
|
|
491
|
|
|
485
|
|
|
1,904
|
|
|
1,870
|
|
OPERATING
EXPENSE:
|
|
|
|
|
|
|
|
|
Plant operating
expense
|
|
370
|
|
|
333
|
|
|
1,420
|
|
|
1,371
|
|
Other operating
expense, net
|
|
15
|
|
|
21
|
|
|
52
|
|
|
64
|
|
General and
administrative expense
|
|
37
|
|
|
32
|
|
|
120
|
|
|
122
|
|
Depreciation and
amortization expense
|
|
56
|
|
|
56
|
|
|
224
|
|
|
221
|
|
Impairment charges
(a)
|
|
—
|
|
|
(1)
|
|
|
19
|
|
|
2
|
|
Total operating
expense
|
|
478
|
|
|
441
|
|
|
1,835
|
|
|
1,780
|
|
Operating
income
|
|
13
|
|
|
44
|
|
|
69
|
|
|
90
|
|
OTHER (EXPENSE)
INCOME:
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
(33)
|
|
|
(35)
|
|
|
(133)
|
|
|
(143)
|
|
Net gain on sale of
business and investments (a)
|
|
17
|
|
|
—
|
|
|
26
|
|
|
49
|
|
Loss on extinguishment
of debt (a)
|
|
—
|
|
|
—
|
|
|
(12)
|
|
|
—
|
|
Other
income
|
|
2
|
|
|
—
|
|
|
—
|
|
|
1
|
|
Total other
expense
|
|
(14)
|
|
|
(35)
|
|
|
(119)
|
|
|
(93)
|
|
(Loss) income
before income tax benefit and equity in net income
from unconsolidated
investments
|
|
(1)
|
|
|
9
|
|
|
(50)
|
|
|
(3)
|
|
Income tax
benefit
|
|
12
|
|
|
1
|
|
|
18
|
|
|
7
|
|
Equity in net income
from unconsolidated investments
|
|
1
|
|
|
2
|
|
|
4
|
|
|
6
|
|
Net income
(loss)
|
|
$
|
12
|
|
|
$
|
12
|
|
|
$
|
(28)
|
|
|
$
|
10
|
|
|
|
|
|
|
|
|
|
|
Weighted Average
Common Shares Outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
|
132
|
|
|
131
|
|
|
132
|
|
|
131
|
|
Diluted
|
|
135
|
|
|
134
|
|
|
132
|
|
|
133
|
|
|
|
|
|
|
|
|
|
|
Earnings (Loss)
Per Share
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.09
|
|
|
$
|
0.09
|
|
|
$
|
(0.21)
|
|
|
$
|
0.07
|
|
Diluted
|
|
$
|
0.09
|
|
|
$
|
0.09
|
|
|
$
|
(0.21)
|
|
|
$
|
0.07
|
|
|
|
|
|
|
|
|
|
|
Cash Dividend
Declared Per Share
|
|
$
|
0.08
|
|
|
$
|
0.25
|
|
|
$
|
0.49
|
|
|
$
|
1.00
|
|
|
(a) For additional
information, see Exhibit 4 of this Press Release.
|
Covanta Holding
Corporation
|
Exhibit 2
|
Consolidated
Balance Sheets
|
|
|
|
|
As of December
31,
|
|
2020
|
|
2019
|
|
|
|
|
|
(Unaudited)
|
|
|
ASSETS
|
(In millions, except per share amounts)
|
Current:
|
|
|
|
Cash and cash
equivalents
|
$
|
55
|
|
|
$
|
37
|
|
Restricted funds held
in trust
|
11
|
|
|
18
|
|
Receivables (less
allowances of $8 and $9, respectively)
|
260
|
|
|
240
|
|
Prepaid expenses and
other current assets
|
117
|
|
|
105
|
|
Total Current
Assets
|
443
|
|
|
400
|
|
Property, plant and
equipment, net
|
2,421
|
|
|
2,451
|
|
Restricted funds held
in trust
|
6
|
|
|
8
|
|
Intangible assets,
net
|
237
|
|
|
258
|
|
Goodwill
|
302
|
|
|
321
|
|
Other
assets
|
297
|
|
|
277
|
|
Total
Assets
|
$
|
3,706
|
|
|
$
|
3,715
|
|
LIABILITIES AND
EQUITY
|
|
|
|
Current:
|
|
|
|
Current portion of
long-term debt
|
$
|
18
|
|
|
$
|
17
|
|
Current portion of
project debt
|
9
|
|
|
8
|
|
Accounts
payable
|
75
|
|
|
36
|
|
Accrued expenses and
other current liabilities
|
303
|
|
|
292
|
|
Total Current
Liabilities
|
405
|
|
|
353
|
|
Long-term
debt
|
2,396
|
|
|
2,366
|
|
Project
debt
|
116
|
|
|
125
|
|
Deferred income
taxes
|
362
|
|
|
372
|
|
Other
liabilities
|
117
|
|
|
123
|
|
Total
Liabilities
|
3,396
|
|
|
3,339
|
|
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 132 shares)
|
14
|
|
|
14
|
|
Additional paid-in
capital
|
882
|
|
|
857
|
|
Accumulated other
comprehensive loss
|
(32)
|
|
|
(35)
|
|
Accumulated
deficit
|
(554)
|
|
|
(460)
|
|
Treasury stock, at
par
|
—
|
|
|
—
|
|
Total
Equity
|
310
|
|
|
376
|
|
Total Liabilities
and Equity
|
$
|
3,706
|
|
|
$
|
3,715
|
|
Covanta Holding
Corporation
|
Exhibit 3
|
Consolidated
Statements of Cash Flow
|
|
|
|
|
Twelve Months
Ended December 31,
|
|
2020
|
|
2019
|
|
|
|
|
|
(Unaudited, in
millions)
|
OPERATING
ACTIVITIES:
|
|
|
|
Net (loss)
income
|
$
|
(28)
|
|
|
$
|
10
|
|
Adjustments to
reconcile net (loss) income to net cash provided by operating
activities:
|
|
|
|
Depreciation and
amortization expense
|
224
|
|
|
221
|
|
Amortization of
deferred debt financing costs
|
4
|
|
|
5
|
|
Net gain on sale of
business and investments (a)
|
(26)
|
|
|
(49)
|
|
Impairment charges
(a)
|
19
|
|
|
2
|
|
Loss on extinguishment
of debt (a)
|
12
|
|
|
—
|
|
Provision for expected
credit losses
|
1
|
|
|
2
|
|
Stock-based
compensation expense
|
29
|
|
|
25
|
|
Equity in net income
from unconsolidated investments
|
(4)
|
|
|
(6)
|
|
Deferred income
taxes
|
(10)
|
|
|
(9)
|
|
Dividends from
unconsolidated investments
|
9
|
|
|
9
|
|
Other, net
|
(6)
|
|
|
3
|
|
Change in working
capital, net of effects of acquisitions and dispositions
|
24
|
|
|
12
|
|
Changes in noncurrent
assets and liabilities, net
|
6
|
|
|
1
|
|
Net cash provided by
operating activities
|
254
|
|
|
226
|
|
INVESTING
ACTIVITIES:
|
|
|
|
Purchase of property,
plant and equipment
|
(162)
|
|
|
(158)
|
|
Acquisition of
businesses, net of cash acquired
|
—
|
|
|
2
|
|
Proceeds from asset
sales
|
15
|
|
|
27
|
|
Property insurance
proceeds
|
1
|
|
|
—
|
|
Investment in equity
affiliates
|
(15)
|
|
|
(14)
|
|
Other, net
|
(15)
|
|
|
(2)
|
|
Net cash used in
investing activities
|
(176)
|
|
|
(145)
|
|
FINANCING
ACTIVITIES:
|
|
|
|
Proceeds from
borrowings on long-term debt
|
538
|
|
|
80
|
|
Proceeds from
borrowings on revolving credit facility
|
724
|
|
|
536
|
|
Proceeds from
insurance premium financing
|
37
|
|
|
29
|
|
Payments on long-term
debt
|
(555)
|
|
|
(16)
|
|
Payments on revolving
credit facility
|
(685)
|
|
|
(565)
|
|
Payments on project
debt
|
(8)
|
|
|
(18)
|
|
Payment of deferred
financing costs
|
(8)
|
|
|
(1)
|
|
Cash dividends paid to
stockholders
|
(89)
|
|
|
(133)
|
|
Payment of insurance
premium financing
|
(33)
|
|
|
(26)
|
|
Proceeds from related
party note
|
9
|
|
|
—
|
|
Other, net
|
(1)
|
|
|
(8)
|
|
Net cash used in
financing activities
|
(71)
|
|
|
(122)
|
|
Effect of exchange
rate changes on cash, cash equivalents and restricted
cash
|
2
|
|
|
(1)
|
|
Net increase
(decrease) in cash, cash equivalents and restricted cash
|
9
|
|
|
(42)
|
|
Cash, cash
equivalents and restricted cash at beginning of period
|
63
|
|
|
105
|
|
Cash, cash
equivalents and restricted cash at end of period
|
$
|
72
|
|
|
$
|
63
|
|
|
|
|
|
(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
December 31,
|
|
Twelve Months
Ended
December 31,
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited, in millions)
|
Net income
(loss)
|
|
$
|
12
|
|
|
$
|
12
|
|
|
$
|
(28)
|
|
|
$
|
10
|
|
Depreciation and
amortization expense
|
|
56
|
|
|
56
|
|
|
224
|
|
|
221
|
|
Interest
expense
|
|
33
|
|
|
35
|
|
|
133
|
|
|
143
|
|
Income tax
benefit
|
|
(12)
|
|
|
(1)
|
|
|
(18)
|
|
|
(7)
|
|
Impairment charges
(a)
|
|
—
|
|
|
(1)
|
|
|
19
|
|
|
2
|
|
Net gain on sale of
businesses and investments (b)
|
|
(17)
|
|
|
—
|
|
|
(26)
|
|
|
(49)
|
|
Loss on extinguishment
of debt(c)
|
|
—
|
|
|
—
|
|
|
12
|
|
|
—
|
|
Property insurance
recoveries, net
|
|
(1)
|
|
|
—
|
|
|
(1)
|
|
|
—
|
|
Loss on asset
retirements
|
|
1
|
|
|
1
|
|
|
3
|
|
|
4
|
|
Accretion
expense
|
|
—
|
|
|
—
|
|
|
2
|
|
|
2
|
|
Business development
and transaction costs (f)
|
|
—
|
|
|
—
|
|
|
1
|
|
|
2
|
|
Severance and
reorganization costs (d) (f)
|
|
3
|
|
|
2
|
|
|
5
|
|
|
13
|
|
Stock-based
compensation expense
|
|
10
|
|
|
5
|
|
|
29
|
|
|
25
|
|
Adjustments to reflect
Adjusted EBITDA from unconsolidated
investments
|
|
6
|
|
|
7
|
|
|
24
|
|
|
25
|
|
Capital type
expenditures at client owned facilities (e)
|
|
12
|
|
|
6
|
|
|
36
|
|
|
34
|
|
Other
(f)
|
|
—
|
|
|
3
|
|
|
9
|
|
|
3
|
|
Adjusted
EBITDA
|
|
$
|
103
|
|
|
$
|
125
|
|
|
$
|
424
|
|
|
$
|
428
|
|
|
(a)
|
During the year ended
December 31, 2020, we recorded a $19 million non-cash impairment
charge related to our Covanta Environmental Solutions reporting
unit.
|
(b)
|
During the year ended
December 31, 2020, we recorded a $26 million gain on the sale of
business and investments comprised of a $9 million gain
related to the Newhurst Energy Recovery Facility development
project and a $17 million gain related to the Protos Energy
Recovery Facility development project.
|
|
During the year ended
December 31, 2019, we recorded a $56 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 WtE facilities.
|
(c)
|
During the year
ended December 31, 2020, we recorded a $12 million loss on
extinguishment of debt comprised of approximately $10 million
related to the redemption of our 5.875% Senior Notes due 2024
and approximately $1 million related to the refinancing of our
tax-exempt bonds.
|
(d)
|
During the years
ended December 31, 2020 and 2019, we recorded $5 million and
$13 million, respectively, of costs related to our
ongoing asset rationalization and portfolio optimization efforts,
early retirement program, and certain organizational restructuring
activities.
|
(e)
|
Adjustment for
capital equipment related expenditures at our service fee operated
facilities which are capitalized at facilities that we
own.
|
(f)
|
Added back under the
definition of Adjusted EBITDA in Covanta Energy, LLC's credit
agreement.
|
|
|
Three Months
Ended
December 31,
|
|
Twelve Months
Ended
December 31,
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited, in millions)
|
Net cash provided
by operating activities
|
|
$
|
63
|
|
|
$
|
114
|
|
|
$
|
254
|
|
|
$
|
226
|
|
Capital type
expenditures at client owned facilities (a)
|
|
12
|
|
|
6
|
|
|
36
|
|
|
34
|
|
Cash paid for
interest
|
|
8
|
|
|
29
|
|
|
112
|
|
|
152
|
|
Cash (refunded) paid
for taxes, net
|
|
(7)
|
|
|
—
|
|
|
(4)
|
|
|
5
|
|
Equity in net income
from unconsolidated investments
|
|
1
|
|
|
2
|
|
|
4
|
|
|
6
|
|
Adjustments to reflect
Adjusted EBITDA from unconsolidated
investments
|
|
6
|
|
|
7
|
|
|
24
|
|
|
25
|
|
Dividends from
unconsolidated investments
|
|
(6)
|
|
|
(4)
|
|
|
(9)
|
|
|
(9)
|
|
Adjustment for working
capital and other
|
|
26
|
|
|
(29)
|
|
|
7
|
|
|
(11)
|
|
Adjusted
EBITDA
|
|
$
|
103
|
|
|
$
|
125
|
|
|
$
|
424
|
|
|
$
|
428
|
|
|
(a) See Adjusted
EBITDA reconciliation above - Note (e).
|
Covanta Holding
Corporation
|
Exhibit 5
|
Reconciliation of
Net Cash Provided by Operating Activities to Free Cash
Flow
|
|
|
|
|
Three Months
Ended
December 31,
|
|
Twelve Months
Ended
December 31,
|
|
Full Year
Estimated 2021
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited, in millions)
|
|
|
Net cash provided
by operating activities
|
$
|
63
|
|
|
$
|
114
|
|
|
$
|
254
|
|
|
$
|
226
|
|
|
$230 -
$260
|
Add: Changes in
restricted funds - operating (a)
|
1
|
|
|
2
|
|
|
1
|
|
|
20
|
|
|
-
|
Less: Maintenance
capital expenditures (b)
|
(53)
|
|
|
(25)
|
|
|
(160)
|
|
|
(106)
|
|
|
(120) -
(135)
|
Free Cash
Flow
|
$
|
11
|
|
|
$
|
91
|
|
|
$
|
95
|
|
|
$
|
140
|
|
|
$100 -
$140
|
|
|
|
(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
December 31,
|
|
Twelve Months
Ended
December
31,
|
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited, in millions)
|
|
|
Maintenance capital
expenditures
|
$
|
(53)
|
|
|
$
|
(25)
|
|
|
$
|
(160)
|
|
|
$
|
(106)
|
|
|
|
Net maintenance
capital expenditures paid but incurred
in prior periods
|
10
|
|
|
(2)
|
|
|
12
|
|
|
(9)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total ash processing
system
|
(2)
|
|
|
(5)
|
|
|
(13)
|
|
|
(9)
|
|
|
|
Capital expenditures
associated with the New York City
MTS contract
|
—
|
|
|
—
|
|
|
—
|
|
|
(19)
|
|
|
|
Capital expenditures
associated with other organic
growth initiatives
|
—
|
|
|
(3)
|
|
|
(1)
|
|
|
(13)
|
|
|
|
Total capital
expenditures associated with growth
investments (c)
|
(2)
|
|
|
(8)
|
|
|
(14)
|
|
|
(41)
|
|
|
|
Capital expenditures
associated with property
insurance events
|
—
|
|
|
(2)
|
|
|
—
|
|
|
(2)
|
|
|
|
Total purchases of
property, plant and equipment
|
$
|
(45)
|
|
|
$
|
(37)
|
|
|
$
|
(162)
|
|
|
$
|
(158)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(c) Total growth
investments represents investments in growth opportunities,
including organic growth
initiatives, technology, business development, and other similar
expenditures, net of third party loans
collateralized by unconsolidated project equity.
|
|
|
Capital expenditures
associated with growth investments
|
$
|
(2)
|
|
|
$
|
(8)
|
|
|
$
|
(14)
|
|
|
$
|
(41)
|
|
|
|
UK business
development projects
|
(4)
|
|
|
(2)
|
|
|
(13)
|
|
|
(3)
|
|
|
|
Investment in equity
affiliate
|
(4)
|
|
|
(5)
|
|
|
(15)
|
|
|
(14)
|
|
|
|
Asset and business
acquisitions, net of cash acquired
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
|
Less: third party
project loan proceeds collateralized
by project equity
|
—
|
|
|
—
|
|
|
9
|
|
|
—
|
|
|
|
Total growth
investments
|
$
|
(10)
|
|
|
$
|
(15)
|
|
|
$
|
(33)
|
|
|
$
|
(56)
|
|
|
|
Covanta Holding
Corporation
|
|
|
|
|
Exhibit
6
|
Supplemental
Information
|
|
|
|
|
|
(Unaudited, $ in
millions)
|
|
|
|
|
|
|
|
|
Twelve Months
Ended
December 31,
|
|
|
|
2020
|
|
2019
|
REVENUE:
|
|
|
|
|
|
Waste and service
revenue:
|
|
|
|
|
|
WtE tip
fees
|
|
|
$
|
651
|
|
|
$
|
638
|
|
WtE service
fees
|
|
|
466
|
|
|
466
|
|
Environmental services
(a)
|
|
|
136
|
|
|
140
|
|
Municipal services
(b)
|
|
|
242
|
|
|
231
|
|
Other
(c)
|
|
|
37
|
|
|
34
|
|
Intercompany
(d)
|
|
|
(120)
|
|
|
(116)
|
|
Total waste and
service
|
|
|
1,412
|
|
|
1,393
|
|
Energy
revenue:
|
|
|
|
|
|
Energy
sales
|
|
|
266
|
|
|
273
|
|
Capacity
|
|
|
41
|
|
|
44
|
|
Other
(e)
|
|
|
51
|
|
|
12
|
|
Total
energy
|
|
|
357
|
|
|
329
|
|
Recycled metals
revenue:
|
|
|
|
|
|
Ferrous
|
|
|
47
|
|
|
46
|
|
Non-ferrous
|
|
|
34
|
|
|
40
|
|
Total recycled
metals
|
|
|
81
|
|
|
86
|
|
Other revenue
(f)
|
|
|
54
|
|
|
62
|
|
Total
revenue
|
|
|
$
|
1,904
|
|
|
$
|
1,870
|
|
|
|
|
|
|
|
OPERATING
EXPENSE:
|
|
|
|
|
|
Plant operating
expense:
|
|
|
|
|
|
Plant
maintenance
|
|
|
$
|
326
|
|
|
$
|
308
|
|
Other plant operating
expense
|
|
|
1,094
|
|
|
1,063
|
|
Total plant operating
expense
|
|
|
1,420
|
|
|
1,371
|
|
Other operating
expense
|
|
|
52
|
|
|
64
|
|
General and
administrative
|
|
|
120
|
|
|
122
|
|
Depreciation and
amortization
|
|
|
224
|
|
|
221
|
|
Impairment
charges
|
|
|
19
|
|
|
2
|
|
Total operating
expense
|
|
|
$
|
1,835
|
|
|
$
|
1,780
|
|
|
|
|
|
|
|
Operating
income
|
|
|
$
|
69
|
|
|
$
|
90
|
|
|
|
|
|
|
|
Plus: impairment
charges
|
|
|
19
|
|
|
2
|
|
Operating
income excluding impairment charges
|
|
|
$
|
88
|
|
|
$
|
92
|
|
|
|
|
|
|
|
(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
WtE 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 - FY 2019 to FY 2020
|
|
|
|
|
|
|
(Unaudited, $ in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contract
Transitions(b)
|
|
|
|
|
|
|
|
FY
2019
|
|
Organic
Growth (a)
|
|
%
|
|
Waste
|
|
Transactions
(c)
|
|
Total
Changes
|
|
FY
2020
|
REVENUE:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Waste and
service:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WtE tip
fees
|
$
|
638
|
|
|
$
|
16
|
|
|
2.5
|
%
|
|
$
|
4
|
|
|
$
|
(7)
|
|
|
$
|
13
|
|
|
$
|
651
|
|
WtE service
fees
|
466
|
|
|
(1)
|
|
|
(0.3)
|
%
|
|
1
|
|
|
—
|
|
|
—
|
|
|
466
|
|
Environmental
services
|
140
|
|
|
(4)
|
|
|
(2.8)
|
%
|
|
—
|
|
|
(1)
|
|
|
(4)
|
|
|
136
|
|
Municipal
services
|
231
|
|
|
9
|
|
|
4.1
|
%
|
|
—
|
|
|
2
|
|
|
11
|
|
|
242
|
|
Other
revenue
|
34
|
|
|
3
|
|
|
9.6
|
%
|
|
—
|
|
|
—
|
|
|
3
|
|
|
37
|
|
Intercompany
|
(116)
|
|
|
(3)
|
|
|
|
|
—
|
|
|
(1)
|
|
|
(4)
|
|
|
(120)
|
|
Total waste and
service
|
1,393
|
|
|
20
|
|
|
1.5
|
%
|
|
5
|
|
|
(7)
|
|
|
19
|
|
|
1,412
|
|
Energy
revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Energy
sales
|
273
|
|
|
(5)
|
|
|
(1.9)
|
%
|
|
1
|
|
|
(3)
|
|
|
(7)
|
|
|
266
|
|
Capacity
|
44
|
|
|
(3)
|
|
|
(6.5)
|
%
|
|
—
|
|
|
—
|
|
|
(3)
|
|
|
41
|
|
Other
|
12
|
|
|
39
|
|
|
—
|
%
|
|
—
|
|
|
—
|
|
|
39
|
|
|
51
|
|
Total
energy
|
329
|
|
|
31
|
|
|
9.3
|
%
|
|
1
|
|
|
(3)
|
|
|
28
|
|
|
357
|
|
Recycled
metals:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ferrous
|
46
|
|
|
2
|
|
|
3.4
|
%
|
|
—
|
|
|
—
|
|
|
1
|
|
|
47
|
|
Non-ferrous
|
40
|
|
|
(6)
|
|
|
(15.3)
|
%
|
|
—
|
|
|
—
|
|
|
(6)
|
|
|
34
|
|
Total recycled
metals
|
86
|
|
|
(5)
|
|
|
(5.3)
|
%
|
|
—
|
|
|
—
|
|
|
(5)
|
|
|
81
|
|
Other
revenue
|
62
|
|
|
(9)
|
|
|
(14.0)
|
%
|
|
—
|
|
|
—
|
|
|
(8)
|
|
|
54
|
|
Total
revenue
|
$
|
1,870
|
|
|
$
|
38
|
|
|
2.0
|
%
|
|
$
|
6
|
|
|
$
|
(10)
|
|
|
$
|
34
|
|
|
$
|
1,904
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
EXPENSE:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Plant operating
expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Plant
maintenance
|
$
|
308
|
|
|
$
|
20
|
|
|
6.4
|
%
|
|
$
|
—
|
|
|
$
|
(2)
|
|
|
$
|
18
|
|
|
$
|
326
|
|
Other plant operating
expense
|
1,063
|
|
|
37
|
|
|
3.5
|
%
|
|
6
|
|
|
(11)
|
|
|
31
|
|
|
1,094
|
|
Total plant
operating expense
|
1,371
|
|
|
57
|
|
|
4.2
|
%
|
|
6
|
|
|
(13)
|
|
|
49
|
|
|
1,420
|
|
Other operating
expense
|
64
|
|
|
(11)
|
|
|
|
|
—
|
|
|
—
|
|
|
(12)
|
|
|
52
|
|
General and
administrative
|
122
|
|
|
(2)
|
|
|
|
|
—
|
|
|
—
|
|
|
(2)
|
|
|
120
|
|
Depreciation and
amortization
|
221
|
|
|
5
|
|
|
|
|
—
|
|
|
(2)
|
|
|
3
|
|
|
224
|
|
Total operating
expense(d)
|
$
|
1,778
|
|
|
$
|
48
|
|
|
|
|
$
|
6
|
|
|
$
|
(15)
|
|
|
$
|
38
|
|
|
$
|
1,816
|
|
Operating income
(loss) (d)
|
$
|
92
|
|
|
$
|
(11)
|
|
|
|
|
$
|
1
|
|
|
$
|
5
|
|
|
$
|
(4)
|
|
|
$
|
88
|
|
|
|
(a) Reflects the
performance at each facility 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 and the addition or loss of
operating contracts.
|
(d) Excludes
impairment charges
|
Note: Certain amounts
may not total due to rounding
|
WtE Operating
Metrics (Unaudited)
|
|
|
|
|
|
|
|
Exhibit 8
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
Three Months
Ended
|
|
Year
Ended
|
|
Mar
31,
|
|
Jun
30,
|
|
Sep
30,
|
|
Dec
31,
|
|
Dec
31,
|
|
Mar
31,
|
|
Jun
30,
|
|
Sep
30,
|
|
Dec
31,
|
|
Dec
31,
|
|
2020
|
|
2020
|
|
2020
|
|
2020
|
|
2020
|
|
2019
|
|
2019
|
|
2019
|
|
2019
|
|
2019
|
WtE
Waste
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tons: (in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tip fee -
contracted
|
2.08
|
|
|
2.15
|
|
|
2.28
|
|
|
2.14
|
|
|
8.65
|
|
|
2.04
|
|
|
2.29
|
|
|
2.28
|
|
|
2.18
|
|
|
8.78
|
|
Tip fee -
uncontracted
|
0.58
|
|
|
0.52
|
|
|
0.46
|
|
|
0.53
|
|
|
2.09
|
|
|
0.54
|
|
|
0.43
|
|
|
0.48
|
|
|
0.57
|
|
|
2.01
|
|
Service fee
|
2.62
|
|
|
2.51
|
|
|
2.74
|
|
|
2.53
|
|
|
10.41
|
|
|
2.62
|
|
|
2.70
|
|
|
2.74
|
|
|
2.64
|
|
|
10.70
|
|
Total tons
|
5.28
|
|
|
5.19
|
|
|
5.48
|
|
|
5.20
|
|
|
21.15
|
|
|
5.20
|
|
|
5.41
|
|
|
5.49
|
|
|
5.39
|
|
|
21.49
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WtE tip fee per
ton:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contracted
|
$
|
54.04
|
|
|
$
|
54.37
|
|
|
$
|
55.45
|
|
|
$
|
55.77
|
|
|
$
|
54.92
|
|
|
$
|
52.64
|
|
|
$
|
54.16
|
|
|
$
|
53.93
|
|
|
$
|
53.93
|
|
|
$
|
53.69
|
|
Uncontracted
|
$
|
82.87
|
|
|
$
|
78.71
|
|
|
$
|
89.89
|
|
|
$
|
84.96
|
|
|
$
|
83.91
|
|
|
$
|
76.57
|
|
|
$
|
89.06
|
|
|
$
|
85.22
|
|
|
$
|
81.31
|
|
|
$
|
82.61
|
|
Average revenue per
ton
|
$
|
60.36
|
|
|
$
|
59.10
|
|
|
$
|
61.23
|
|
|
$
|
61.57
|
|
|
$
|
60.57
|
|
|
$
|
57.66
|
|
|
$
|
59.66
|
|
|
$
|
59.36
|
|
|
$
|
59.58
|
|
|
$
|
59.08
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WtE
Energy
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Energy sales: (MWh in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contracted
|
0.51
|
|
|
0.48
|
|
|
0.51
|
|
|
0.53
|
|
|
2.03
|
|
|
0.47
|
|
|
0.47
|
|
|
0.55
|
|
|
0.57
|
|
|
2.06
|
|
Hedged
|
0.82
|
|
|
0.87
|
|
|
1.13
|
|
|
0.99
|
|
|
3.81
|
|
|
0.80
|
|
|
0.73
|
|
|
0.76
|
|
|
0.73
|
|
|
3.02
|
|
Market
|
0.30
|
|
|
0.18
|
|
|
NM
|
|
|
0.12
|
|
|
0.62
|
|
|
0.29
|
|
|
0.37
|
|
|
0.38
|
|
|
0.27
|
|
|
1.31
|
|
Total energy
sales
|
1.64
|
|
|
1.52
|
|
|
1.65
|
|
|
1.64
|
|
|
6.45
|
|
|
1.56
|
|
|
1.57
|
|
|
1.69
|
|
|
1.56
|
|
|
6.38
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Market sales by
geography:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PJM East
|
0.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
|
0.1
|
|
|
0.2
|
|
|
0.2
|
|
|
0.1
|
|
|
0.6
|
|
NEPOOL
|
0.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
|
0.1
|
|
|
0.1
|
|
|
0.1
|
|
|
0.1
|
|
|
0.3
|
|
NYISO
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
Other
|
0.1
|
|
|
0.1
|
|
|
—
|
|
|
0.1
|
|
|
0.3
|
|
|
0.1
|
|
|
0.1
|
|
|
0.1
|
|
|
0.1
|
|
|
0.3
|
|
Revenue per MWh:
(excludes capacity)
|
Contracted
|
$
|
66.32
|
|
|
$
|
69.06
|
|
|
$
|
65.89
|
|
|
$
|
70.30
|
|
|
$
|
67.90
|
|
|
$
|
67.33
|
|
|
$
|
66.00
|
|
|
$
|
62.77
|
|
|
$
|
67.33
|
|
|
$
|
65.80
|
|
Hedged
|
$
|
45.68
|
|
|
$
|
23.76
|
|
|
$
|
26.31
|
|
|
$
|
28.54
|
|
|
$
|
30.51
|
|
|
$
|
49.67
|
|
|
$
|
26.42
|
|
|
$
|
28.69
|
|
|
$
|
31.10
|
|
|
$
|
34.29
|
|
Market
|
$
|
19.15
|
|
|
$
|
17.85
|
|
|
NM
|
|
|
$
|
27.09
|
|
|
$
|
19.83
|
|
|
$
|
32.44
|
|
|
$
|
21.69
|
|
|
$
|
25.36
|
|
|
$
|
27.22
|
|
|
$
|
26.31
|
|
Average revenue per
MWh
|
$
|
47.27
|
|
|
$
|
37.25
|
|
|
$
|
38.24
|
|
|
$
|
41.97
|
|
|
$
|
41.24
|
|
|
$
|
51.74
|
|
|
$
|
37.19
|
|
|
$
|
39.08
|
|
|
$
|
43.52
|
|
|
$
|
42.81
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Metals
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tons recovered, net:
(in thousands)
|
|
|
|
|
|
|
|
|
Ferrous
|
103.1
|
|
|
115.7
|
|
|
118.2
|
|
|
120.3
|
|
|
457.3
|
|
|
96.3
|
|
|
110.8
|
|
|
111.9
|
|
|
104.7
|
|
|
423.7
|
|
Non-ferrous
|
12.0
|
|
|
12.3
|
|
|
12.2
|
|
|
11.5
|
|
|
47.9
|
|
|
12.6
|
|
|
12.5
|
|
|
12.8
|
|
|
13.0
|
|
|
50.8
|
|
Tons sold, net: (in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ferrous
|
90.6
|
|
|
99.2
|
|
|
101.3
|
|
|
110.8
|
|
|
401.8
|
|
|
84.0
|
|
|
94.9
|
|
|
96.4
|
|
|
94.9
|
|
|
370.3
|
|
Non-ferrous
|
7.5
|
|
|
8.1
|
|
|
9.1
|
|
|
7.3
|
|
|
32.1
|
|
|
8.3
|
|
|
6.7
|
|
|
8.2
|
|
|
10.4
|
|
|
33.7
|
|
Revenue per ton: ($
in millions)
|
|
|
|
|
|
|
|
|
Ferrous
|
$
|
115
|
|
|
$
|
104
|
|
|
$
|
115
|
|
|
$
|
133
|
|
|
$
|
117
|
|
|
$
|
137
|
|
|
$
|
132
|
|
|
$
|
118
|
|
|
$
|
108
|
|
|
$
|
123
|
|
Non-ferrous
|
$
|
900
|
|
|
$
|
1,123
|
|
|
$
|
1,003
|
|
|
$
|
1,201
|
|
|
$
|
1,054
|
|
|
$
|
1,123
|
|
|
$
|
1,255
|
|
|
$
|
984
|
|
|
$
|
1,346
|
|
|
$
|
1,184
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WtE plant
operating expenses: ($ in millions)
|
Plant operating
expenses - gross
|
$
|
292
|
|
|
$
|
274
|
|
|
$
|
270
|
|
|
$
|
300
|
|
|
$
|
1,137
|
|
|
$
|
294
|
|
|
$
|
278
|
|
|
$
|
256
|
|
|
$
|
269
|
|
|
$
|
1,097
|
|
Less: Client pass-
through costs
|
(13)
|
|
|
(10)
|
|
|
(13)
|
|
|
(22)
|
|
|
(58)
|
|
|
(13)
|
|
|
(12)
|
|
|
(12)
|
|
|
(20)
|
|
|
(57)
|
|
Less: REC sales -
contra-expense
|
(4)
|
|
|
(3)
|
|
|
(3)
|
|
|
(7)
|
|
|
(17)
|
|
|
(3)
|
|
|
(2)
|
|
|
(4)
|
|
|
(3)
|
|
|
(12)
|
|
Plant operating
expenses - reported
|
$
|
275
|
|
|
$
|
261
|
|
|
$
|
255
|
|
|
$
|
271
|
|
|
$
|
1,062
|
|
|
$
|
278
|
|
|
$
|
264
|
|
|
$
|
240
|
|
|
$
|
247
|
|
|
$
|
1,028
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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. 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, we adjust EBITDA for our proportionate
share of the entity's depreciation and amortization, interest
expense, tax expense and other adjustments to exclude significant
unusual or non-recurring items that are not directly related to the
entity's operating performance. in order to improve
comparability to the Adjusted EBITDA of our wholly owned entities.
We do not have control, nor have any legal claim to the portion of
our unconsolidated investees' revenues and expenses allocable to
our joint venture partners. As we do not control, but do exercise
significant influence, we account for these unconsolidated
investments in accordance with the equity method of accounting. Net
income (losses) from these investments are reflected within our
consolidated statements of operations in Equity in net income from
unconsolidated investments. In order to provide a meaningful basis
for comparison, we are providing information with respect to our
Adjusted EBITDA for the year ended December
31, 2020 and 2019, 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 2020
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
year ended December 31, 2020 and
2019, 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 (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 us are not guarantees or indicative of future
performance. Important factors, risks and uncertainties that could
cause actual results to differ materially from those
forward-looking statements include, but are not limited to:
- the impact of the COVID-19 pandemic on our employees, business,
and operations, or on the economy in general, including commercial
and financial markets;
- our ability to identify opportunities and execute on strategies
and transactions, including in connection with a strategic review
of our business and including acquisitions, divestitures, and
restructuring opportunities;
- seasonal or long-term fluctuations in the prices of energy,
waste disposal, scrap metal and commodities;
- our 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, environmental laws, tax laws, labor laws and healthcare
laws;
- failure to maintain historical performance levels at our
facilities and our ability to retain the rights to operate
facilities we do not own;
- our ability to avoid adverse publicity or reputational damage
relating to our business;
- 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;
- difficulties in the financing, development and construction of
new projects and expansions, including increased construction costs
and delays;
- our ability to realize the benefits of long-term business
development and bear the cost of business development over
time;
- limits of insurance coverage;
- our ability to avoid defaults under our long-term
contracts;
- performance of third parties under our 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 our existing indebtedness, including
limitations on strategic alternatives or transactions;
- our ability to perform our financial obligations and guarantees
and to refinance our existing indebtedness;
- exposure to counterparty credit risk and instability of
financial institutions in connection with financing
transactions;
- the scalability of our business;
- our ability to attract and retain talented people;
- failures of disclosure controls and procedures and internal
controls over financial reporting;
- our ability to utilize net operating loss carryforwards;
- general economic conditions in the
United States and abroad, including the availability of
credit and debt financing; and
- other risks and uncertainties affecting our business described
in Item 1A. Risk Factors of our Annual Report on Form 10-K
and in other 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.
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SOURCE Covanta Holding Corporation