Covanta Holding Corporation Reports 2019 First Quarter Results And Affirms 2019 Guidance

April 25, 2019

MORRISTOWN, N.J., April 25, 2019 /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 three months ended March 31, 2019.


Three Months Ended
March 31,


2019


2018






(Unaudited, $ in millions)

Revenue

$453


$458

Net income

$5


$201

Adjusted EBITDA

$84


$100

Net cash provided by operating activities

$37


$3

Free Cash Flow

$6


$(52)

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

Covanta Logo (PRNewsFoto/Covanta)

Key Highlights

  • Affirming 2019 guidance
  • Reached financial close on Rookery project in the UK
  • Began operations at Manhattan Marine Transfer Station

"The year is off to a strong start, both operationally and strategically, and we are affirming our full-year financial outlook today," said Covanta's President and CEO Stephen J. Jones. "On the strategic front, we are making steady progress in our partnership with the Green Investment Group, achieving another important milestone in Q1 with the Rookery project reaching financial close. With two of our four advanced UK development projects now in construction, we are well on our way towards our goal of generating $40 to $50 million in annual Free Cash Flow from this pipeline. Domestically, we commenced operations at the Manhattan Marine Transfer Station, continued execution of our fleet optimization program, and benefited from stronger waste disposal prices and profiled waste revenue. Through these and other efforts, Covanta is becoming a more efficient and profitable company, and I am pleased with our progress and excited about the opportunities."

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

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

(In millions)

Metric

2019
Guidance Range (1)

2018
Actual

Adjusted EBITDA

$440 - $465

$457

Free Cash Flow

$120 - $145

$100

(1)  For additional information on the reconciliation of Free Cash Flow to Net cash provided by operating activities, see Exhibit 5 of this press release.

Guidance as of April 25, 2019.

Conference Call Information
Covanta will host a conference call at 8:30 AM (Eastern) on Friday, April 26, 2019 to discuss its first 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 22 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.

 

Exhibit 1

Covanta Holding Corporation

Consolidated Statements of Operations




Three Months Ended
March 31,



2019


2018







(Unaudited)

(In millions, except

per share amounts)

OPERATING REVENUE:





Waste and service revenue


$

327



$

312


Energy revenue


94



100


Recycled metals revenue


21



24


Other operating revenue


11



22


Total operating revenue


453



458


OPERATING EXPENSE:





Plant operating expense


359



345


Other operating expense, net


17



8


General and administrative expense


30



31


Depreciation and amortization expense


55



54


Total operating expense


461



438


Operating (loss) income


(8)



20


OTHER (EXPENSE) INCOME:





Interest expense


(36)



(38)


Net gain on sale of business and investments (a)


50



210


Other income, net


1




Total other income


15



172


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


7



192


Income tax (expense) benefit


(2)



9


Equity in net income from unconsolidated investments





Net income


$

5



$

201







Weighted Average Common Shares Outstanding:





Basic


131



130


Diluted


133



132







Earnings Per Share:





Basic


$

0.04



$

1.55


Diluted


$

0.03



$

1.53







Cash Dividend Declared Per Share


$

0.25



$

0.25







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

 

 

Exhibit 2

Covanta Holding Corporation

Consolidated Balance Sheets



As of


March 31,
2019


December 31,
2018


(Unaudited)



ASSETS

(In millions, except per share amounts)

Current:




Cash and cash equivalents

$

88



$

58


Restricted funds held in trust

31



39


Receivables (less allowances of $7 and $8, respectively)

292



338


Prepaid expenses and other current assets

79



62


Assets held for sale



2


Total Current Assets

490



499


Property, plant and equipment, net

2,511



2,514


Restricted funds held in trust

7



8


Intangible assets, net

274



279


Goodwill

321



321


Other assets

282



222


Total Assets

$

3,885



$

3,843


LIABILITIES AND EQUITY




Current:




Current portion of long-term debt

$

15



$

15


Current portion of project debt

10



19


Accounts payable

67



76


Accrued expenses and other current liabilities

306



333


Total Current Liabilities

398



443


Long-term debt

2,393



2,327


Project debt

131



133


Deferred income taxes

382



378


Other liabilities

127



75


Total Liabilities

3,431



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

841



841


Accumulated other comprehensive loss

(36)



(33)


Accumulated deficit

(365)



(334)


Treasury stock, at par



(1)


Total Equity

454



487


Total Liabilities and Equity

$

3,885



$

3,843


 

 

Exhibit 3

Covanta Holding Corporation

Consolidated Statements of Cash Flow



Three Months Ended
March 31,


2019


2018






(Unaudited, in millions)

OPERATING ACTIVITIES:




Net income

$

5



$

201


Adjustments to reconcile net income to net cash provided by operating activities:




Depreciation and amortization expense

55



54


Amortization of deferred debt financing costs

1



2


Net gain on sale of business and investments (a)

(50)



(210)


Stock-based compensation expense

8



9


Deferred income taxes

1



(3)


Other, net



(12)


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

16



(39)


Changes in noncurrent assets and liabilities, net

1



1


Net cash provided by operating activities

37



3


INVESTING ACTIVITIES:




Purchase of property, plant and equipment

(52)



(81)


Acquisition of businesses, net of cash acquired

2



(4)


Proceeds from the sale of assets, net of restricted cash

26



111


Property insurance proceeds



7


Payment of indemnification claim related to sale of asset



(7)


Investment in equity affiliate

(3)




Net cash (used in) provided by investing activities

(27)



26


FINANCING ACTIVITIES:




Proceeds from borrowings on revolving credit facility

220



170


Payments on long-term debt

(3)



(1)


Payments on revolving credit facility

(151)



(228)


Payments on equipment financing capital leases

(1)



(1)


Payments on project debt

(10)



(10)


Cash dividends paid to stockholders

(35)



(33)


Payment of insurance premium financing

(7)



(7)


Other, net

(2)




Net cash provided by (used in) financing activities

11



(110)


Effect of exchange rate changes on cash and cash equivalents



3


Net increase (decrease) in cash, cash equivalents and restricted cash

21



(78)


Cash, cash equivalents and restricted cash at beginning of period

105



194


Cash, cash equivalents and restricted cash at end of period

$

126



$

116






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

 

 

Exhibit 4

Covanta Holding Corporation

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




Three Months Ended
March 31,



2019


2018








(Unaudited, in millions)

Net income


$

5



$

201


Depreciation and amortization expense


55



54


Interest expense


36



38


Income tax expense (benefit)


2



(9)


Net gain on sale of businesses and investments (a)


(50)



(210)


Property insurance recoveries, net




(7)


Capital type expenditures at client owned facilities (b)


13



12


Debt service billings in excess of revenue recognized




1


Business development and transaction costs




2


Severance and reorganization costs


3



2


Stock-based compensation expense


8



9


Adjustments to reflect Adjusted EBITDA from unconsolidated investments

6



4


Other (c)


6



3


Adjusted EBITDA


$

84



$

100


Capital type expenditures at client owned facilities (b)


(13)



(12)


Cash paid for interest, net of capitalized interest


(47)



(33)


Cash paid for taxes, net


(1)




Adjustments to reflect Adjusted EBITDA from unconsolidated investments

(6)



(4)


Adjustment for working capital and other


20



(48)


Net cash provided by operating activities


$

37



$

3




(a)

During the three months ended March 31, 2019, we recorded a $57 million gain related to the Rookery South Energy Recovery Facility development project and a $9 million loss related to the pending divestiture of our Springfield and Pittsfield EfW facilities.




During the three months ended March 31, 2018, we recorded a $204 million gain on the sale of 50% of our Dublin project to our joint venture with Green Investment Group and $6 million gain on the sale of our remaining interests in China.



(b)

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.



(c)

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

 

 

Exhibit 5

Covanta Holding Corporation

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



Three Months Ended
March 31,


Full Year
Estimated
2019


2019


2018









(Unaudited, in millions)



Net cash provided by operating activities

$

37



$

3



$230 - $260

Add: Changes in restricted funds - operating (a)



(10)



10

Less: Maintenance capital expenditures (b)

(31)



(45)



(130 - 120)

Free Cash Flow

$

6



$

(52)



$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
March 31,




2019


2018



Maintenance capital expenditures

$

(31)



$

(45)




Net maintenance capital expenditures paid but incurred in prior periods

(6)



(7)




Capital expenditures associated with construction of Dublin EfW facility



(17)




Capital expenditures associated with the New York City MTS contract

(11)






Capital expenditures associated with organic growth initiatives

(4)



(8)




Total capital expenditures associated with growth investments (c)

(15)



(25)




Capital expenditures associated with property insurance events



(4)




Total purchases of property, plant and equipment

$

(52)



$

(81)










(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

$

(15)



$

(25)




UK business development projects

(1)






Investment in equity affiliate

(3)






Asset and business acquisitions, net of cash acquired

2



(5)




Total growth investments

$

(17)



$

(30)




 

 

Covanta Holding Corporation




Exhibit 6

Supplemental Information





(Unaudited, $ in millions)







Three Months Ended
March 31,



2019


2018

REVENUE:





Waste and service revenue:





EfW tip fees


$

149



$

153


EfW service fees


117



99


Environmental services (a)


32



32


Municipal services (b)


48



45


Other (c)


7



8


Intercompany (d)


(26)



(26)


Total waste and service


327



312


Energy revenue:





Energy sales


81



87


Capacity


13



13


Total energy


94



100


Recycled metals revenue:





Ferrous


11



15


Non-ferrous


9



9


Total recycled metals


21



24


Other revenue (e)


11



22


Total revenue


$

453



$

458







OPERATING EXPENSE:





Plant operating expense:





Plant maintenance


$

95



$

90


Other plant operating expense


264



255


Total plant operating expense


359



345


Other operating expense


17



8


General and administrative


30



31


Depreciation and amortization


55



54


Total operating expense


$

461



$

438







Operating (loss) income


$

(8)



$

20







(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) Consists primarily of construction revenue.





Note: Certain amounts may not total due to rounding.





 

 

Covanta Holding Corporation











Exhibit 7

Revenue and Operating Income Changes - Q1 2018 to Q1 2019









(Unaudited, $ in millions)
































Contract Transitions (b)








Q1 2018


Organic
Growth (a)


%


Waste


Energy


Transactions (c)


Total
Changes


Q1 2019

REVENUE:
















Waste and service:
















EfW tip fees

$

153



$

5



3.5

%


$



$



$

(10)



$

(5)



$

149


EfW service fees

99



2



2.1

%


(3)





19



18



117


Environmental services

32





1.2

%










32


Municipal services

45



3



6.1

%








3



48


Other revenue

8





5.1

%


(2)







(2)



7


Intercompany

(26)















(26)


Total waste and service

312



11



3.5

%


(4)





8



14



327


Energy:
















Energy sales

87



(3)



(3.2)

%


1





(4)



(6)



81


Capacity

13



1



8.4

%






(1)



1



13


Total energy

100



(2)



(1.7)

%


1





(5)



(6)



94


Recycled metals:
















Ferrous

15



(4)



(28.4)

%






1



(3)



11


Non-ferrous

9





0.1

%










9


Total recycled metals

24



(4)



(17.7)

%






1



(3)



21


Other revenue

22



(10)



(46.0)

%








(10)



11


Total revenue

$

458



$

(5)



(1.1)

%


$

(4)



$



$

4



$

(5)



$

453


















OPERATING EXPENSE:
















Plant operating expense:
















Plant maintenance

$

90



$

4



4.5

%


$



$



$

2



$

5



$

95


Other plant operating expense

255



2



0.9

%


(1)





7



8



264


Total plant operating expense

345



6



1.9

%


(1)





8



14



359


Other operating expense

8



10











10



17


General and administrative

31



(1)











(1)



30


Depreciation and amortization

54







(1)





1



1



55


Total operating expense

$

438



$

16





$

(2)



$



$

10



$

23



$

461


Operating income (loss)

$

20



$

(21)





$

(2)



$



$

(5)



$

(28)



$

(8)


















(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
March 31,


2019


2018

EfW Waste




Tons: (in millions)




Tip fee- contracted

2.04



2.08


Tip fee- uncontracted

0.54



0.65


Service fee

2.62



2.11


Total tons

5.20



4.84


Tip Fee revenue per ton:




Tip fee- contracted

$

52.64



$

53.33


Tip fee- uncontracted

$

76.57



$

65.38


Average tip fee

$

57.66



$

56.20


EfW Energy




Energy sales: (MWh in millions)




Contracted

0.47



0.52


Hedged

0.80



0.75


Market

0.29



0.33


Total energy

1.56



1.60


Market sales by geography: (MWh in millions)




PJM East

0.1



0.2


NEPOOL

0.1




NYISO




Other

0.1



0.1


Revenue per MWh (excludes capacity):




Contracted

$

67.33



$

67.86


Hedged

$

49.67



$

50.07


Market

$

32.44



$

44.08


Average revenue per MWh

$

51.74



$

54.56


Metals




Tons Recovered: (in thousands)




Ferrous

96.3



101.9


Non-ferrous

12.6



11.1


Tons Sold: (in thousands)




Ferrous

84.0



76.6


Non-ferrous

8.3



6.5


Revenue per ton:




Ferrous

$

137



$

193


Non-ferrous

$

1,123



$

1,192


EfW plant operating expense: ($ in millions)




Plant operating expense - gross

$

294



$

282


Less: Client pass-through costs

(13)



(14)


Less: REC sales - contra-expense

(3)



(3)


Plant operating expense, net

$

278



$

266






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 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 months ended March 31, 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 the JV 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 months ended March 31, 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 the JV 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.

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SOURCE Covanta