Covanta Holding Corporation Reports 2021 First Quarter Results and Increases 2021 Guidance
Updating Progress on Strategic Review and Establishing Long-term Financial Outlook
MORRISTOWN, NJ, April 29, 2021 - 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, 2021.
|Three Months Ended March 31,|
|(Unaudited, $ in millions)|
|Net income (loss)||$2||$(32)|
|Net cash provided by operating activities||$52||$61|
|Free Cash Flow||$19||$18|
Reconciliations of non-GAAP measures can be found in the exhibits to this press release.
•Strong first quarter operating results including 4% year-over-year WtE tip fee price growth
•Metals prices significantly higher year-over-year on improving demand and tight market supply
•Increasing 2021 guidance for Adjusted EBITDA and Free Cash Flow
•Initiating overhead cost rationalization program for $30 million in annual savings by 2023
•Establishing long-term financial outlook:
◦Adjusted EBITDA of $600 million and Free Cash Flow of $250 million by 2024
◦Leverage ratio below 5x by end of 2022
“Covanta is off to a great start operationally, and with strong waste and metals markets, improved visibility on waste-to-energy plant production for the balance of the year, and continued focus on cost control, we are confidently raising our guidance for 2021,” said Michael Ranger, President and CEO. “I am also pleased to announce the first definitive steps in our strategic review process. We are instituting a comprehensive overhead cost rationalization program to rightsize the level of support required for the business. In addition, we continue to explore third party interest in discrete assets and develop plans to address underperforming operations. With our new UK projects coming online over the next three years, including Rookery in Q1 next year, and planned cost improvements, we have a high degree of visibility to meaningful growth from drivers under our control, which translates to a compelling outlook for cash generation.”
More detail on our first quarter results can be found in the exhibits to this release and in our first quarter 2021 earnings presentation found in the Investor Relations section of the Covanta website at www.covanta.com.
The following information was filed by Covanta Holding Corp (CVA) on Thursday, April 29, 2021 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.