Covanta Holding Corporation Reports 2019 Third Quarter Results And Affirms Guidance

Published

MORRISTOWN, N.J., Oct. 24, 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 and nine months ended September 30, 2019.

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 GuidanceThe Company affirmed 2019 guidance for the following key metrics:

(In millions)

Three Months Ended September 30, Metric 2019 Guidance 2018Actual
2019 2018 Adjusted EBITDA $420 - $445 $457
(Unaudited, $ in millions) Free Cash Flow $120 - $145 $100
Revenue $465 $456 Reconciliations of non-GAAP measures can be found in the exhibits to this press release.
Net income (loss) $14 $(27) Guidance as of October 24, 2019.
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.

Conference Call InformationCovanta 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 CovantaCovanta 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 StatementsCertain 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.

Three Months Ended September 30, Metric 2019 Guidance 2018Actual Covanta Holding Corporation Exhibit 1
2019 2018 Adjusted EBITDA $420 - $445 $457 Consolidated Statements of Operations
(Unaudited, $ in millions) Free Cash Flow $120 - $145 $100
Revenue $465 $456 Reconciliations of non-GAAP measures can be found in the exhibits to this press release. Three Months Ended September 30, Nine Months Ended September 30,
Net income (loss) $14 $(27) Guidance as of October 24, 2019. 2019 2018 2019 2018
Adjusted EBITDA $125 $122
Net cash provided by operating activities $25 $84 (Unaudited)(In millions, except per share amounts)
Free Cash Flow $22 $85 OPERATING REVENUE:
Reconciliations of non-GAAP measures can be found in the exhibits to this press release. 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.

 

Three Months Ended September 30, Metric 2019 Guidance 2018Actual Covanta Holding Corporation Exhibit 1 Covanta Holding Corporation Exhibit 2
2019 2018 Adjusted EBITDA $420 - $445 $457 Consolidated Statements of Operations Consolidated Balance Sheets
(Unaudited, $ in millions) Free Cash Flow $120 - $145 $100
Revenue $465 $456 Reconciliations of non-GAAP measures can be found in the exhibits to this press release. Three Months Ended September 30, Nine Months Ended September 30, As of
Net income (loss) $14 $(27) Guidance as of October 24, 2019. 2019 2018 2019 2018 September 30, 2019 December 31, 2018
Adjusted EBITDA $125 $122
Net cash provided by operating activities $25 $84 (Unaudited)(In millions, except per share amounts) (Unaudited)
Free Cash Flow $22 $85 OPERATING REVENUE: ASSETS (In millions, except per share amounts)
Reconciliations of non-GAAP measures can be found in the exhibits to this press release. Waste and service revenue $ 353 $ 332 $ 1,039 $ 977 Current:
Energy revenue 81 81 247 257 Cash and cash equivalents $ 65 $ 58
Recycled metals revenue 19 23 61 72 Restricted funds held in trust 25 39
Other operating revenue 12 20 38 62 Receivables (less allowances of $8 and $8, respectively) 307 338
Total operating revenue 465 456 1,385 1,368 Prepaid expenses and other current assets 78 64
OPERATING EXPENSE: Total Current Assets 475 499
Plant operating expense 325 308 1,038 987 Property, plant and equipment, net 2,465 2,514
Other operating expense, net 10 17 43 44 Restricted funds held in trust 8 8
General and administrative expense 29 27 90 85 Intangible assets, net 263 279
Depreciation and amortization expense 55 53 165 162 Goodwill 321 321
Impairment charges (a) 2 49 3 86 Other assets 266 222
Total operating expense 421 454 1,339 1,364 Total Assets $ 3,798 $ 3,843
Operating income 44 2 46 4 LIABILITIES AND EQUITY
OTHER (EXPENSE) INCOME: Current:
Interest expense (36) (37) (108) (111) Current portion of long-term debt $ 16 $ 15
Net gain on sale of business and investments (a) 1 7 49 217 Current portion of project debt 8 19
Loss on extinguishment of debt (a) (3) (3) Accounts payable 63 76
Other (expense) income, net (1) 1 (1) Accrued expenses and other current liabilities 252 333
Total other (expense) income (36) (33) (58) 102 Total Current Liabilities 339 443
Income (loss) before income tax benefit and equity in net income      from unconsolidated investments 8 (31) (12) 106 Long-term debt 2,457 2,327
Income tax benefit 5 3 6 34 Project debt 126 133
Equity in net income from unconsolidated investments 1 1 4 3 Deferred income taxes 372 378
Net income (loss) $ 14 $ (27) $ (2) $ 143 Other liabilities 127 75
Total Liabilities 3,421 3,356
Weighted Average Common Shares Outstanding: Equity:
Basic 131 130 131 130 Preferred stock ($0.10 par value; authorized 10 shares; none issued and      outstanding)
Diluted 133 130 131 132 Common stock ($0.10 par value; authorized 250 shares; issued 136 shares,      outstanding 131 shares) 14 14
Additional paid-in capital 853 841
Earnings (Loss) Per Share: Accumulated other comprehensive loss (51) (33)
Basic $ 0.11 $ (0.21) $ (0.02) $ 1.10 Accumulated deficit (439) (334)
Diluted $ 0.10 $ (0.21) $ (0.02) $ 1.09 Treasury stock, at par (1)
Total Equity 377 487
Cash Dividend Declared Per Share $ 0.25 $ 0.25 $ 0.75 $ 0.75 Total Liabilities and Equity $ 3,798 $ 3,843
(a) For additional information, see Exhibit 4 of this Press Release.

 

Three Months Ended September 30, Metric 2019 Guidance 2018Actual Covanta Holding Corporation Exhibit 1 Covanta Holding Corporation Exhibit 2 Covanta Holding Corporation Exhibit 3
2019 2018 Adjusted EBITDA $420 - $445 $457 Consolidated Statements of Operations Consolidated Balance Sheets Consolidated Statements of Cash Flow
(Unaudited, $ in millions) Free Cash Flow $120 - $145 $100
Revenue $465 $456 Reconciliations of non-GAAP measures can be found in the exhibits to this press release. Three Months Ended September 30, Nine Months Ended September 30, As of Nine Months Ended September 30,
Net income (loss) $14 $(27) Guidance as of October 24, 2019. 2019 2018 2019 2018 September 30, 2019 December 31, 2018 2019 2018
Adjusted EBITDA $125 $122
Net cash provided by operating activities $25 $84 (Unaudited)(In millions, except per share amounts) (Unaudited) (Unaudited, in millions)
Free Cash Flow $22 $85 OPERATING REVENUE: ASSETS (In millions, except per share amounts) OPERATING ACTIVITIES:
Reconciliations of non-GAAP measures can be found in the exhibits to this press release. Waste and service revenue $ 353 $ 332 $ 1,039 $ 977 Current: Net (loss) income $ (2) $ 143
Energy revenue 81 81 247 257 Cash and cash equivalents $ 65 $ 58 Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Recycled metals revenue 19 23 61 72 Restricted funds held in trust 25 39 Depreciation and amortization expense 165 162
Other operating revenue 12 20 38 62 Receivables (less allowances of $8 and $8, respectively) 307 338 Amortization of deferred debt financing costs 3 4
Total operating revenue 465 456 1,385 1,368 Prepaid expenses and other current assets 78 64 Net gain on sale of business and investments (a) (49) (217)
OPERATING EXPENSE: Total Current Assets 475 499 Impairment charges (a) 3 86
Plant operating expense 325 308 1,038 987 Property, plant and equipment, net 2,465 2,514 Loss on extinguishment of debt (a) 3
Other operating expense, net 10 17 43 44 Restricted funds held in trust 8 8 Stock-based compensation expense 20 18
General and administrative expense 29 27 90 85 Intangible assets, net 263 279 Equity in net income from unconsolidated investments (4) (3)
Depreciation and amortization expense 55 53 165 162 Goodwill 321 321 Deferred income taxes (9) (32)
Impairment charges (a) 2 49 3 86 Other assets 266 222 Dividends from unconsolidated investments 5 1
Total operating expense 421 454 1,339 1,364 Total Assets $ 3,798 $ 3,843 Other, net 5 (5)
Operating income 44 2 46 4 LIABILITIES AND EQUITY Change in working capital, net of effects of acquisitions and dispositions (33) (14)
OTHER (EXPENSE) INCOME: Current: Changes in noncurrent assets and liabilities, net 8 1
Interest expense (36) (37) (108) (111) Current portion of long-term debt $ 16 $ 15 Net cash provided by operating activities 112 147
Net gain on sale of business and investments (a) 1 7 49 217 Current portion of project debt 8 19 INVESTING ACTIVITIES:
Loss on extinguishment of debt (a) (3) (3) Accounts payable 63 76 Purchase of property, plant and equipment (121) (158)
Other (expense) income, net (1) 1 (1) Accrued expenses and other current liabilities 252 333 Acquisition of businesses, net of cash acquired 2 (50)
Total other (expense) income (36) (33) (58) 102 Total Current Liabilities 339 443 Proceeds from the sale of assets, net of restricted cash 28 125
Income (loss) before income tax benefit and equity in net income      from unconsolidated investments 8 (31) (12) 106 Long-term debt 2,457 2,327 Property insurance proceeds 7
Income tax benefit 5 3 6 34 Project debt 126 133 Payment of indemnification claim related to sale of asset (7)
Equity in net income from unconsolidated investments 1 1 4 3 Deferred income taxes 372 378 Investment in equity affiliate (9)
Net income (loss) $ 14 $ (27) $ (2) $ 143 Other liabilities 127 75 Other, net (1) (4)
Total Liabilities 3,421 3,356 Net cash used in investing activities (101) (87)
Weighted Average Common Shares Outstanding: Equity: FINANCING ACTIVITIES:
Basic 131 130 131 130 Preferred stock ($0.10 par value; authorized 10 shares; none issued and      outstanding) Proceeds from borrowings on long-term debt 75 765
Diluted 133 130 131 132 Common stock ($0.10 par value; authorized 250 shares; issued 136 shares,      outstanding 131 shares) 14 14 Proceeds from borrowings on revolving credit facility 441 474
Additional paid-in capital 853 841 Payments on long-term debt (12) (532)
Earnings (Loss) Per Share: Accumulated other comprehensive loss (51) (33) Payments on revolving credit facility (375) (713)
Basic $ 0.11 $ (0.21) $ (0.02) $ 1.10 Accumulated deficit (439) (334) Payments on project debt (16) (21)
Diluted $ 0.10 $ (0.21) $ (0.02) $ 1.09 Treasury stock, at par (1) Payment of deferred financing costs (1) (9)
Total Equity 377 487 Cash dividends paid to stockholders (100) (98)
Cash Dividend Declared Per Share $ 0.25 $ 0.25 $ 0.75 $ 0.75 Total Liabilities and Equity $ 3,798 $ 3,843 Payment of insurance premium financing (20) (20)
Other, net (8) (4)
(a) For additional information, see Exhibit 4 of this Press Release. 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.

 

Three Months Ended September 30, Metric 2019 Guidance 2018Actual Covanta Holding Corporation Exhibit 1 Covanta Holding Corporation Exhibit 2 Covanta Holding Corporation Exhibit 3 Covanta Holding Corporation Exhibit 4
2019 2018 Adjusted EBITDA $420 - $445 $457 Consolidated Statements of Operations Consolidated Balance Sheets Consolidated Statements of Cash Flow Consolidated Reconciliation of Net Income (Loss) and Net Cash Provided by Operating Activities      to Adjusted EBITDA
(Unaudited, $ in millions) Free Cash Flow $120 - $145 $100
Revenue $465 $456 Reconciliations of non-GAAP measures can be found in the exhibits to this press release. Three Months Ended September 30, Nine Months Ended September 30, As of Nine Months Ended September 30, Three Months Ended September 30, Nine Months Ended September 30,
Net income (loss) $14 $(27) Guidance as of October 24, 2019. 2019 2018 2019 2018 September 30, 2019 December 31, 2018 2019 2018 2019 2018 2019 2018
Adjusted EBITDA $125 $122
Net cash provided by operating activities $25 $84 (Unaudited)(In millions, except per share amounts) (Unaudited) (Unaudited, in millions) (Unaudited, in millions)
Free Cash Flow $22 $85 OPERATING REVENUE: ASSETS (In millions, except per share amounts) OPERATING ACTIVITIES: Net income (loss) $ 14 $ (27) $ (2) $ 143
Reconciliations of non-GAAP measures can be found in the exhibits to this press release. Waste and service revenue $ 353 $ 332 $ 1,039 $ 977 Current: Net (loss) income $ (2) $ 143 Depreciation and amortization expense 55 53 165 162
Energy revenue 81 81 247 257 Cash and cash equivalents $ 65 $ 58 Adjustments to reconcile net (loss) income to net cash provided by operating activities: Interest expense 36 37 108 111
Recycled metals revenue 19 23 61 72 Restricted funds held in trust 25 39 Depreciation and amortization expense 165 162 Income tax benefit (5) (3) (6) (34)
Other operating revenue 12 20 38 62 Receivables (less allowances of $8 and $8, respectively) 307 338 Amortization of deferred debt financing costs 3 4 Impairment charges (a) 2 49 3 86
Total operating revenue 465 456 1,385 1,368 Prepaid expenses and other current assets 78 64 Net gain on sale of business and investments (a) (49) (217) Net gain on sale of businesses and investments (b) (1) (7) (49) (217)
OPERATING EXPENSE: Total Current Assets 475 499 Impairment charges (a) 3 86 Loss on extinguishment of debt (c) 3 3
Plant operating expense 325 308 1,038 987 Property, plant and equipment, net 2,465 2,514 Loss on extinguishment of debt (a) 3 Property insurance recoveries, net (7)
Other operating expense, net 10 17 43 44 Restricted funds held in trust 8 8 Stock-based compensation expense 20 18 Capital type expenditures at client owned facilities (d) 8 5 28 28
General and administrative expense 29 27 90 85 Intangible assets, net 263 279 Equity in net income from unconsolidated investments (4) (3) Debt service billings in excess of revenue recognized (1) (1) (1)
Depreciation and amortization expense 55 53 165 162 Goodwill 321 321 Deferred income taxes (9) (32) Business development and transaction costs 1 1 2 4
Impairment charges (a) 2 49 3 86 Other assets 266 222 Dividends from unconsolidated investments 5 1 Severance and reorganization costs 2 1 6 5
Total operating expense 421 454 1,339 1,364 Total Assets $ 3,798 $ 3,843 Other, net 5 (5) Stock-based compensation expense 5 4 20 18
Operating income 44 2 46 4 LIABILITIES AND EQUITY Change in working capital, net of effects of acquisitions and dispositions (33) (14) Adjustments to reflect Adjusted EBITDA from unconsolidated      investments 6 5 18 16
OTHER (EXPENSE) INCOME: Current: Changes in noncurrent assets and liabilities, net 8 1 Other (e) 3 2 11 7
Interest expense (36) (37) (108) (111) Current portion of long-term debt $ 16 $ 15 Net cash provided by operating activities 112 147 Adjusted EBITDA $ 125 $ 122 $ 303 $ 325
Net gain on sale of business and investments (a) 1 7 49 217 Current portion of project debt 8 19 INVESTING ACTIVITIES: Capital type expenditures at client owned facilities (d) (8) (5) (28) (28)
Loss on extinguishment of debt (a) (3) (3) Accounts payable 63 76 Purchase of property, plant and equipment (121) (158) Cash paid for interest (64) (42) (123) (115)
Other (expense) income, net (1) 1 (1) Accrued expenses and other current liabilities 252 333 Acquisition of businesses, net of cash acquired 2 (50) Cash paid for taxes, net (1) (5) (2)
Total other (expense) income (36) (33) (58) 102 Total Current Liabilities 339 443 Proceeds from the sale of assets, net of restricted cash 28 125 Equity in net income from unconsolidated investments (1) (1) (4) (3)
Income (loss) before income tax benefit and equity in net income      from unconsolidated investments 8 (31) (12) 106 Long-term debt 2,457 2,327 Property insurance proceeds 7 Adjustments to reflect Adjusted EBITDA from unconsolidated      investments (6) (5) (18) (16)
Income tax benefit 5 3 6 34 Project debt 126 133 Payment of indemnification claim related to sale of asset (7) Dividends from unconsolidated investments 5 1
Equity in net income from unconsolidated investments 1 1 4 3 Deferred income taxes 372 378 Investment in equity affiliate (9) Adjustment for working capital and other (20) 15 (18) (15)
Net income (loss) $ 14 $ (27) $ (2) $ 143 Other liabilities 127 75 Other, net (1) (4) Net cash provided by operating activities $ 25 $ 84 $ 112 $ 147
Total Liabilities 3,421 3,356 Net cash used in investing activities (101) (87)
Weighted Average Common Shares Outstanding: Equity: FINANCING ACTIVITIES:
Basic 131 130 131 130 Preferred stock ($0.10 par value; authorized 10 shares; none issued and      outstanding) Proceeds from borrowings on long-term debt 75 765
Diluted 133 130 131 132 Common stock ($0.10 par value; authorized 250 shares; issued 136 shares,      outstanding 131 shares) 14 14 Proceeds from borrowings on revolving credit facility 441 474
Additional paid-in capital 853 841 Payments on long-term debt (12) (532)
Earnings (Loss) Per Share: Accumulated other comprehensive loss (51) (33) Payments on revolving credit facility (375) (713)
Basic $ 0.11 $ (0.21) $ (0.02) $ 1.10 Accumulated deficit (439) (334) Payments on project debt (16) (21)
Diluted $ 0.10 $ (0.21) $ (0.02) $ 1.09 Treasury stock, at par (1) Payment of deferred financing costs (1) (9)
Total Equity 377 487 Cash dividends paid to stockholders (100) (98)
Cash Dividend Declared Per Share $ 0.25 $ 0.25 $ 0.75 $ 0.75 Total Liabilities and Equity $ 3,798 $ 3,843 Payment of insurance premium financing (20) (20)
Other, net (8) (4)
(a) For additional information, see Exhibit 4 of this Press Release. 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.

Three Months Ended September 30, Metric 2019 Guidance 2018Actual Covanta Holding Corporation Exhibit 1 Covanta Holding Corporation Exhibit 2 Covanta Holding Corporation Exhibit 3 Covanta Holding Corporation Exhibit 4 (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.
2019 2018 Adjusted EBITDA $420 - $445 $457 Consolidated Statements of Operations Consolidated Balance Sheets Consolidated Statements of Cash Flow Consolidated Reconciliation of Net Income (Loss) and Net Cash Provided by Operating Activities      to Adjusted EBITDA (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.
(Unaudited, $ in millions) Free Cash Flow $120 - $145 $100 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.
Revenue $465 $456 Reconciliations of non-GAAP measures can be found in the exhibits to this press release. Three Months Ended September 30, Nine Months Ended September 30, As of Nine Months Ended September 30, Three Months Ended September 30, Nine Months Ended September 30, (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.
Net income (loss) $14 $(27) Guidance as of October 24, 2019. 2019 2018 2019 2018 September 30, 2019 December 31, 2018 2019 2018 2019 2018 2019 2018 (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.
Adjusted EBITDA $125 $122 (e) Includes certain other items that are added back under the definition of Adjusted EBITDA in Covanta Energy, LLC's credit agreement.
Net cash provided by operating activities $25 $84 (Unaudited)(In millions, except per share amounts) (Unaudited) (Unaudited, in millions) (Unaudited, in millions)
Free Cash Flow $22 $85 OPERATING REVENUE: ASSETS (In millions, except per share amounts) OPERATING ACTIVITIES: Net income (loss) $ 14 $ (27) $ (2) $ 143
Reconciliations of non-GAAP measures can be found in the exhibits to this press release. Waste and service revenue $ 353 $ 332 $ 1,039 $ 977 Current: Net (loss) income $ (2) $ 143 Depreciation and amortization expense 55 53 165 162
Energy revenue 81 81 247 257 Cash and cash equivalents $ 65 $ 58 Adjustments to reconcile net (loss) income to net cash provided by operating activities: Interest expense 36 37 108 111
Recycled metals revenue 19 23 61 72 Restricted funds held in trust 25 39 Depreciation and amortization expense 165 162 Income tax benefit (5) (3) (6) (34)
Other operating revenue 12 20 38 62 Receivables (less allowances of $8 and $8, respectively) 307 338 Amortization of deferred debt financing costs 3 4 Impairment charges (a) 2 49 3 86
Total operating revenue 465 456 1,385 1,368 Prepaid expenses and other current assets 78 64 Net gain on sale of business and investments (a) (49) (217) Net gain on sale of businesses and investments (b) (1) (7) (49) (217)
OPERATING EXPENSE: Total Current Assets 475 499 Impairment charges (a) 3 86 Loss on extinguishment of debt (c) 3 3
Plant operating expense 325 308 1,038 987 Property, plant and equipment, net 2,465 2,514 Loss on extinguishment of debt (a) 3 Property insurance recoveries, net (7)
Other operating expense, net 10 17 43 44 Restricted funds held in trust 8 8 Stock-based compensation expense 20 18 Capital type expenditures at client owned facilities (d) 8 5 28 28
General and administrative expense 29 27 90 85 Intangible assets, net 263 279 Equity in net income from unconsolidated investments (4) (3) Debt service billings in excess of revenue recognized (1) (1) (1)
Depreciation and amortization expense 55 53 165 162 Goodwill 321 321 Deferred income taxes (9) (32) Business development and transaction costs 1 1 2 4
Impairment charges (a) 2 49 3 86 Other assets 266 222 Dividends from unconsolidated investments 5 1 Severance and reorganization costs 2 1 6 5
Total operating expense 421 454 1,339 1,364 Total Assets $ 3,798 $ 3,843 Other, net 5 (5) Stock-based compensation expense 5 4 20 18
Operating income 44 2 46 4 LIABILITIES AND EQUITY Change in working capital, net of effects of acquisitions and dispositions (33) (14) Adjustments to reflect Adjusted EBITDA from unconsolidated      investments 6 5 18 16
OTHER (EXPENSE) INCOME: Current: Changes in noncurrent assets and liabilities, net 8 1 Other (e) 3 2 11 7
Interest expense (36) (37) (108) (111) Current portion of long-term debt $ 16 $ 15 Net cash provided by operating activities 112 147 Adjusted EBITDA $ 125 $ 122 $ 303 $ 325
Net gain on sale of business and investments (a) 1 7 49 217 Current portion of project debt 8 19 INVESTING ACTIVITIES: Capital type expenditures at client owned facilities (d) (8) (5) (28) (28)
Loss on extinguishment of debt (a) (3) (3) Accounts payable 63 76 Purchase of property, plant and equipment (121) (158) Cash paid for interest (64) (42) (123) (115)
Other (expense) income, net (1) 1 (1) Accrued expenses and other current liabilities 252 333 Acquisition of businesses, net of cash acquired 2 (50) Cash paid for taxes, net (1) (5) (2)
Total other (expense) income (36) (33) (58) 102 Total Current Liabilities 339 443 Proceeds from the sale of assets, net of restricted cash 28 125 Equity in net income from unconsolidated investments (1) (1) (4) (3)
Income (loss) before income tax benefit and equity in net income      from unconsolidated investments 8 (31) (12) 106 Long-term debt 2,457 2,327 Property insurance proceeds 7 Adjustments to reflect Adjusted EBITDA from unconsolidated      investments (6) (5) (18) (16)
Income tax benefit 5 3 6 34 Project debt 126 133 Payment of indemnification claim related to sale of asset (7) Dividends from unconsolidated investments 5 1
Equity in net income from unconsolidated investments 1 1 4 3 Deferred income taxes 372 378 Investment in equity affiliate (9) Adjustment for working capital and other (20) 15 (18) (15)
Net income (loss) $ 14 $ (27) $ (2) $ 143 Other liabilities 127 75 Other, net (1) (4) Net cash provided by operating activities $ 25 $ 84 $ 112 $ 147
Total Liabilities 3,421 3,356 Net cash used in investing activities (101) (87)
Weighted Average Common Shares Outstanding: Equity: FINANCING ACTIVITIES:
Basic 131 130 131 130 Preferred stock ($0.10 par value; authorized 10 shares; none issued and      outstanding) Proceeds from borrowings on long-term debt 75 765
Diluted 133 130 131 132 Common stock ($0.10 par value; authorized 250 shares; issued 136 shares,      outstanding 131 shares) 14 14 Proceeds from borrowings on revolving credit facility 441 474
Additional paid-in capital 853 841 Payments on long-term debt (12) (532)
Earnings (Loss) Per Share: Accumulated other comprehensive loss (51) (33) Payments on revolving credit facility (375) (713)
Basic $ 0.11 $ (0.21) $ (0.02) $ 1.10 Accumulated deficit (439) (334) Payments on project debt (16) (21)
Diluted $ 0.10 $ (0.21) $ (0.02) $ 1.09 Treasury stock, at par (1) Payment of deferred financing costs (1) (9)
Total Equity 377 487 Cash dividends paid to stockholders (100) (98)
Cash Dividend Declared Per Share $ 0.25 $ 0.25 $ 0.75 $ 0.75 Total Liabilities and Equity $ 3,798 $ 3,843 Payment of insurance premium financing (20) (20)
Other, net (8) (4)
(a) For additional information, see Exhibit 4 of this Press Release. 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.

 

Three Months Ended September 30, Metric 2019 Guidance 2018Actual Covanta Holding Corporation Exhibit 1 Covanta Holding Corporation Exhibit 2 Covanta Holding Corporation Exhibit 3 Covanta Holding Corporation Exhibit 4 (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. Covanta Holding Corporation Exhibit 5
2019 2018 Adjusted EBITDA $420 - $445 $457 Consolidated Statements of Operations Consolidated Balance Sheets Consolidated Statements of Cash Flow Consolidated Reconciliation of Net Income (Loss) and Net Cash Provided by Operating Activities      to Adjusted EBITDA (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. Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow
(Unaudited, $ in millions) Free Cash Flow $120 - $145 $100 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.
Revenue $465 $456 Reconciliations of non-GAAP measures can be found in the exhibits to this press release. Three Months Ended September 30, Nine Months Ended September 30, As of Nine Months Ended September 30, Three Months Ended September 30, Nine Months Ended September 30, (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. Three Months Ended September 30, Nine Months Ended September 30, Full Year Estimated 2019
Net income (loss) $14 $(27) Guidance as of October 24, 2019. 2019 2018 2019 2018 September 30, 2019 December 31, 2018 2019 2018 2019 2018 2019 2018 (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. 2019 2018 2019 2018
Adjusted EBITDA $125 $122 (e) Includes certain other items that are added back under the definition of Adjusted EBITDA in Covanta Energy, LLC's credit agreement.
Net cash provided by operating activities $25 $84 (Unaudited)(In millions, except per share amounts) (Unaudited) (Unaudited, in millions) (Unaudited, in millions) (Unaudited, in millions)
Free Cash Flow $22 $85 OPERATING REVENUE: ASSETS (In millions, except per share amounts) OPERATING ACTIVITIES: Net income (loss) $ 14 $ (27) $ (2) $ 143 Net cash provided by operating activities $ 25 $ 84 $ 112 $ 147 $225 - $255
Reconciliations of non-GAAP measures can be found in the exhibits to this press release. Waste and service revenue $ 353 $ 332 $ 1,039 $ 977 Current: Net (loss) income $ (2) $ 143 Depreciation and amortization expense 55 53 165 162 Add: Changes in restricted funds - operating (a) 13 18 18 7 15 - 20
Energy revenue 81 81 247 257 Cash and cash equivalents $ 65 $ 58 Adjustments to reconcile net (loss) income to net cash provided by operating activities: Interest expense 36 37 108 111 Less: Maintenance capital expenditures (b) (16) (17) (81) (95) (130 - 120)
Recycled metals revenue 19 23 61 72 Restricted funds held in trust 25 39 Depreciation and amortization expense 165 162 Income tax benefit (5) (3) (6) (34) Free Cash Flow $ 22 $ 85 $ 49 $ 59 $120 - $145
Other operating revenue 12 20 38 62 Receivables (less allowances of $8 and $8, respectively) 307 338 Amortization of deferred debt financing costs 3 4 Impairment charges (a) 2 49 3 86
Total operating revenue 465 456 1,385 1,368 Prepaid expenses and other current assets 78 64 Net gain on sale of business and investments (a) (49) (217) Net gain on sale of businesses and investments (b) (1) (7) (49) (217) (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.
OPERATING EXPENSE: Total Current Assets 475 499 Impairment charges (a) 3 86 Loss on extinguishment of debt (c) 3 3
Plant operating expense 325 308 1,038 987 Property, plant and equipment, net 2,465 2,514 Loss on extinguishment of debt (a) 3 Property insurance recoveries, net (7)
Other operating expense, net 10 17 43 44 Restricted funds held in trust 8 8 Stock-based compensation expense 20 18 Capital type expenditures at client owned facilities (d) 8 5 28 28 (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:
General and administrative expense 29 27 90 85 Intangible assets, net 263 279 Equity in net income from unconsolidated investments (4) (3) Debt service billings in excess of revenue recognized (1) (1) (1)
Depreciation and amortization expense 55 53 165 162 Goodwill 321 321 Deferred income taxes (9) (32) Business development and transaction costs 1 1 2 4 Three Months Ended September 30, Nine Months Ended September 30,
Impairment charges (a) 2 49 3 86 Other assets 266 222 Dividends from unconsolidated investments 5 1 Severance and reorganization costs 2 1 6 5 2019 2018 2019 2018
Total operating expense 421 454 1,339 1,364 Total Assets $ 3,798 $ 3,843 Other, net 5 (5) Stock-based compensation expense 5 4 20 18 Maintenance capital expenditures $ (16) $ (17) $ (81) $ (95)
Operating income 44 2 46 4 LIABILITIES AND EQUITY Change in working capital, net of effects of acquisitions and dispositions (33) (14) Adjustments to reflect Adjusted EBITDA from unconsolidated      investments 6 5 18 16 Net maintenance capital expenditures paid but    incurred in prior periods (1) 2 (7) (10)
OTHER (EXPENSE) INCOME: Current: Changes in noncurrent assets and liabilities, net 8 1 Other (e) 3 2 11 7 Capital expenditures associated with construction      of Dublin EfW facility (1) (22)
Interest expense (36) (37) (108) (111) Current portion of long-term debt $ 16 $ 15 Net cash provided by operating activities 112 147 Adjusted EBITDA $ 125 $ 122 $ 303 $ 325 Capital expenditures associated with the New York      City MTS contract (2) (9) (19) (9)
Net gain on sale of business and investments (a) 1 7 49 217 Current portion of project debt 8 19 INVESTING ACTIVITIES: Capital type expenditures at client owned facilities (d) (8) (5) (28) (28) Capital expenditures associated with organic      growth initiatives (9) (3) (14) (18)
Loss on extinguishment of debt (a) (3) (3) Accounts payable 63 76 Purchase of property, plant and equipment (121) (158) Cash paid for interest (64) (42) (123) (115) Total capital expenditures associated with growth    investments (c) (11) (13) (33) (49)
Other (expense) income, net (1) 1 (1) Accrued expenses and other current liabilities 252 333 Acquisition of businesses, net of cash acquired 2 (50) Cash paid for taxes, net (1) (5) (2) Capital expenditures associated with property    insurance events (4)
Total other (expense) income (36) (33) (58) 102 Total Current Liabilities 339 443 Proceeds from the sale of assets, net of restricted cash 28 125 Equity in net income from unconsolidated investments (1) (1) (4) (3) Total purchases of property, plant and equipment $ (28) $ (28) $ (121) $ (158)
Income (loss) before income tax benefit and equity in net income      from unconsolidated investments 8 (31) (12) 106 Long-term debt 2,457 2,327 Property insurance proceeds 7 Adjustments to reflect Adjusted EBITDA from unconsolidated      investments (6) (5) (18) (16)
Income tax benefit 5 3 6 34 Project debt 126 133 Payment of indemnification claim related to sale of asset (7) Dividends from unconsolidated investments 5 1 (c)  Total growth investments represents investments in growth opportunities, including organic growth        initiatives, technology, business development, and other similar expenditures.
Equity in net income from unconsolidated investments 1 1 4 3 Deferred income taxes 372 378 Investment in equity affiliate (9) Adjustment for working capital and other (20) 15 (18) (15)
Net income (loss) $ 14 $ (27) $ (2) $ 143 Other liabilities 127 75 Other, net (1) (4) Net cash provided by operating activities $ 25 $ 84 $ 112 $ 147 Capital expenditures associated with growth      investments $ (11) $ (13) $ (33) $ (49)
Total Liabilities 3,421 3,356 Net cash used in investing activities (101) (87) UK business development projects (3) (1) (4)
Weighted Average Common Shares Outstanding: Equity: FINANCING ACTIVITIES: Investment in equity affiliate (1) (9)
Basic 131 130 131 130 Preferred stock ($0.10 par value; authorized 10 shares; none issued and      outstanding) Proceeds from borrowings on long-term debt 75 765 Asset and business acquisitions, net of cash acquired (46) 2 (50)
Diluted 133 130 131 132 Common stock ($0.10 par value; authorized 250 shares; issued 136 shares,      outstanding 131 shares) 14 14 Proceeds from borrowings on revolving credit facility 441 474 Total growth investments $ (12) $ (62) $ (41) $ (103)
Additional paid-in capital 853 841 Payments on long-term debt (12) (532)
Earnings (Loss) Per Share: Accumulated other comprehensive loss (51) (33) Payments on revolving credit facility (375) (713)
Basic $ 0.11 $ (0.21) $ (0.02) $ 1.10 Accumulated deficit (439) (334) Payments on project debt (16) (21)
Diluted $ 0.10 $ (0.21) $ (0.02) $ 1.09 Treasury stock, at par (1) Payment of deferred financing costs (1) (9)
Total Equity 377 487 Cash dividends paid to stockholders (100) (98)
Cash Dividend Declared Per Share $ 0.25 $ 0.25 $ 0.75 $ 0.75 Total Liabilities and Equity $ 3,798 $ 3,843 Payment of insurance premium financing (20) (20)
Other, net (8) (4)
(a) For additional information, see Exhibit 4 of this Press Release. 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.

 

Three Months Ended September 30, Metric 2019 Guidance 2018Actual Covanta Holding Corporation Exhibit 1 Covanta Holding Corporation Exhibit 2 Covanta Holding Corporation Exhibit 3 Covanta Holding Corporation Exhibit 4 (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. Covanta Holding Corporation Exhibit 5 Covanta Holding Corporation Exhibit 6
2019 2018 Adjusted EBITDA $420 - $445 $457 Consolidated Statements of Operations Consolidated Balance Sheets Consolidated Statements of Cash Flow Consolidated Reconciliation of Net Income (Loss) and Net Cash Provided by Operating Activities      to Adjusted EBITDA (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. Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow Supplemental Information
(Unaudited, $ in millions) Free Cash Flow $120 - $145 $100 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. (Unaudited, $ in millions)
Revenue $465 $456 Reconciliations of non-GAAP measures can be found in the exhibits to this press release. Three Months Ended September 30, Nine Months Ended September 30, As of Nine Months Ended September 30, Three Months Ended September 30, Nine Months Ended September 30, (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. Three Months Ended September 30, Nine Months Ended September 30, Full Year Estimated 2019
Net income (loss) $14 $(27) Guidance as of October 24, 2019. 2019 2018 2019 2018 September 30, 2019 December 31, 2018 2019 2018 2019 2018 2019 2018 (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. 2019 2018 2019 2018 Three Months Ended September 30,
Adjusted EBITDA $125 $122 (e) Includes certain other items that are added back under the definition of Adjusted EBITDA in Covanta Energy, LLC's credit agreement. 2019 2018
Net cash provided by operating activities $25 $84 (Unaudited)(In millions, except per share amounts) (Unaudited) (Unaudited, in millions) (Unaudited, in millions) (Unaudited, in millions) REVENUE:
Free Cash Flow $22 $85 OPERATING REVENUE: ASSETS (In millions, except per share amounts) OPERATING ACTIVITIES: Net income (loss) $ 14 $ (27) $ (2) $ 143 Net cash provided by operating activities $ 25 $ 84 $ 112 $ 147 $225 - $255 Waste and service revenue:
Reconciliations of non-GAAP measures can be found in the exhibits to this press release. Waste and service revenue $ 353 $ 332 $ 1,039 $ 977 Current: Net (loss) income $ (2) $ 143 Depreciation and amortization expense 55 53 165 162 Add: Changes in restricted funds - operating (a) 13 18 18 7 15 - 20 EfW tip fees $ 163 $ 155
Energy revenue 81 81 247 257 Cash and cash equivalents $ 65 $ 58 Adjustments to reconcile net (loss) income to net cash provided by operating activities: Interest expense 36 37 108 111 Less: Maintenance capital expenditures (b) (16) (17) (81) (95) (130 - 120) EfW service fees 114 104
Recycled metals revenue 19 23 61 72 Restricted funds held in trust 25 39 Depreciation and amortization expense 165 162 Income tax benefit (5) (3) (6) (34) Free Cash Flow $ 22 $ 85 $ 49 $ 59 $120 - $145 Environmental services (a) 36 36
Other operating revenue 12 20 38 62 Receivables (less allowances of $8 and $8, respectively) 307 338 Amortization of deferred debt financing costs 3 4 Impairment charges (a) 2 49 3 86 Municipal services (b) 64 55
Total operating revenue 465 456 1,385 1,368 Prepaid expenses and other current assets 78 64 Net gain on sale of business and investments (a) (49) (217) Net gain on sale of businesses and investments (b) (1) (7) (49) (217) (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. Other (c) 8 9
OPERATING EXPENSE: Total Current Assets 475 499 Impairment charges (a) 3 86 Loss on extinguishment of debt (c) 3 3 Intercompany (d) (34) (27)
Plant operating expense 325 308 1,038 987 Property, plant and equipment, net 2,465 2,514 Loss on extinguishment of debt (a) 3 Property insurance recoveries, net (7) Total waste and service 353 332
Other operating expense, net 10 17 43 44 Restricted funds held in trust 8 8 Stock-based compensation expense 20 18 Capital type expenditures at client owned facilities (d) 8 5 28 28 (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: Energy revenue:
General and administrative expense 29 27 90 85 Intangible assets, net 263 279 Equity in net income from unconsolidated investments (4) (3) Debt service billings in excess of revenue recognized (1) (1) (1) Energy sales 66 67
Depreciation and amortization expense 55 53 165 162 Goodwill 321 321 Deferred income taxes (9) (32) Business development and transaction costs 1 1 2 4 Three Months Ended September 30, Nine Months Ended September 30, Capacity 9 13
Impairment charges (a) 2 49 3 86 Other assets 266 222 Dividends from unconsolidated investments 5 1 Severance and reorganization costs 2 1 6 5 2019 2018 2019 2018 Other (e) 6
Total operating expense 421 454 1,339 1,364 Total Assets $ 3,798 $ 3,843 Other, net 5 (5) Stock-based compensation expense 5 4 20 18 Maintenance capital expenditures $ (16) $ (17) $ (81) $ (95) Total energy 81 81
Operating income 44 2 46 4 LIABILITIES AND EQUITY Change in working capital, net of effects of acquisitions and dispositions (33) (14) Adjustments to reflect Adjusted EBITDA from unconsolidated      investments 6 5 18 16 Net maintenance capital expenditures paid but    incurred in prior periods (1) 2 (7) (10) Recycled metals revenue:
OTHER (EXPENSE) INCOME: Current: Changes in noncurrent assets and liabilities, net 8 1 Other (e) 3 2 11 7 Capital expenditures associated with construction      of Dublin EfW facility (1) (22) Ferrous 11 14
Interest expense (36) (37) (108) (111) Current portion of long-term debt $ 16 $ 15 Net cash provided by operating activities 112 147 Adjusted EBITDA $ 125 $ 122 $ 303 $ 325 Capital expenditures associated with the New York      City MTS contract (2) (9) (19) (9) Non-ferrous 8 9
Net gain on sale of business and investments (a) 1 7 49 217 Current portion of project debt 8 19 INVESTING ACTIVITIES: Capital type expenditures at client owned facilities (d) (8) (5) (28) (28) Capital expenditures associated with organic      growth initiatives (9) (3) (14) (18) Total recycled metals 19 23
Loss on extinguishment of debt (a) (3) (3) Accounts payable 63 76 Purchase of property, plant and equipment (121) (158) Cash paid for interest (64) (42) (123) (115) Total capital expenditures associated with growth    investments (c) (11) (13) (33) (49) Other revenue (f) 12 20
Other (expense) income, net (1) 1 (1) Accrued expenses and other current liabilities 252 333 Acquisition of businesses, net of cash acquired 2 (50) Cash paid for taxes, net (1) (5) (2) Capital expenditures associated with property    insurance events (4) Total revenue $ 465 $ 456
Total other (expense) income (36) (33) (58) 102 Total Current Liabilities 339 443 Proceeds from the sale of assets, net of restricted cash 28 125 Equity in net income from unconsolidated investments (1) (1) (4) (3) Total purchases of property, plant and equipment $ (28) $ (28) $ (121) $ (158)
Income (loss) before income tax benefit and equity in net income      from unconsolidated investments 8 (31) (12) 106 Long-term debt 2,457 2,327 Property insurance proceeds 7 Adjustments to reflect Adjusted EBITDA from unconsolidated      investments (6) (5) (18) (16) OPERATING EXPENSE:
Income tax benefit 5 3 6 34 Project debt 126 133 Payment of indemnification claim related to sale of asset (7) Dividends from unconsolidated investments 5 1 (c)  Total growth investments represents investments in growth opportunities, including organic growth        initiatives, technology, business development, and other similar expenditures. Plant operating expense:
Equity in net income from unconsolidated investments 1 1 4 3 Deferred income taxes 372 378 Investment in equity affiliate (9) Adjustment for working capital and other (20) 15 (18) (15) Plant maintenance $ 62 $ 55
Net income (loss) $ 14 $ (27) $ (2) $ 143 Other liabilities 127 75 Other, net (1) (4) Net cash provided by operating activities $ 25 $ 84 $ 112 $ 147 Capital expenditures associated with growth      investments $ (11) $ (13) $ (33) $ (49) Other plant operating expense 262 253
Total Liabilities 3,421 3,356 Net cash used in investing activities (101) (87) UK business development projects (3) (1) (4) Total plant operating expense 325 308
Weighted Average Common Shares Outstanding: Equity: FINANCING ACTIVITIES: Investment in equity affiliate (1) (9) Other operating expense 10 17
Basic 131 130 131 130 Preferred stock ($0.10 par value; authorized 10 shares; none issued and      outstanding) Proceeds from borrowings on long-term debt 75 765 Asset and business acquisitions, net of cash acquired (46) 2 (50) General and administrative 29 27
Diluted 133 130 131 132 Common stock ($0.10 par value; authorized 250 shares; issued 136 shares,      outstanding 131 shares) 14 14 Proceeds from borrowings on revolving credit facility 441 474 Total growth investments $ (12) $ (62) $ (41) $ (103) Depreciation and amortization 55 53
Additional paid-in capital 853 841 Payments on long-term debt (12) (532) Impairment charges 2 49
Earnings (Loss) Per Share: Accumulated other comprehensive loss (51) (33) Payments on revolving credit facility (375) (713) Total operating expense $ 421 $ 454
Basic $ 0.11 $ (0.21) $ (0.02) $ 1.10 Accumulated deficit (439) (334) Payments on project debt (16) (21)
Diluted $ 0.10 $ (0.21) $ (0.02) $ 1.09 Treasury stock, at par (1) Payment of deferred financing costs (1) (9) Operating income $ 44 $ 2
Total Equity 377 487 Cash dividends paid to stockholders (100) (98)
Cash Dividend Declared Per Share $ 0.25 $ 0.25 $ 0.75 $ 0.75 Total Liabilities and Equity $ 3,798 $ 3,843 Payment of insurance premium financing (20) (20) Plus: impairment charges 2 49
Other, net (8) (4) Operating income excluding impairment charges $ 46 $ 51
(a) For additional information, see Exhibit 4 of this Press Release. Net cash used in financing activities (16) (158)
Effect of exchange rate changes on cash, cash equivalents and restricted cash (2) 2 (a) Includes the operation of material processing facilities and related services provided by our Covanta Environmental Solutions business.
Net decrease in cash, cash equivalents and restricted cash (7) (96) (b) Consists of transfer stations and the transportation component of our NYC Marine Transfer Station contract.
Cash, cash equivalents and restricted cash at beginning of period 105 194 (c) Includes waste brokerage, debt service and other revenue not directly related to EfW waste processing activities.
Cash, cash equivalents and restricted cash at end of period $ 98 $ 98 (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.
(a) For additional information, see Exhibit 4 of this Press Release. (f) Consists primarily of construction revenue.
Note: Certain amounts may not total due to rounding.

 

Three Months Ended September 30, Metric 2019 Guidance 2018Actual Covanta Holding Corporation Exhibit 1 Covanta Holding Corporation Exhibit 2 Covanta Holding Corporation Exhibit 3 Covanta Holding Corporation Exhibit 4 (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. Covanta Holding Corporation Exhibit 5 Covanta Holding Corporation Exhibit 6 Covanta Holding Corporation Exhibit 7
2019 2018 Adjusted EBITDA $420 - $445 $457 Consolidated Statements of Operations Consolidated Balance Sheets Consolidated Statements of Cash Flow Consolidated Reconciliation of Net Income (Loss) and Net Cash Provided by Operating Activities      to Adjusted EBITDA (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. Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow Supplemental Information Revenue and Operating Income Changes - Q3 2018 to Q3 2019
(Unaudited, $ in millions) Free Cash Flow $120 - $145 $100 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. (Unaudited, $ in millions) (Unaudited, $ in millions)
Revenue $465 $456 Reconciliations of non-GAAP measures can be found in the exhibits to this press release. Three Months Ended September 30, Nine Months Ended September 30, As of Nine Months Ended September 30, Three Months Ended September 30, Nine Months Ended September 30, (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. Three Months Ended September 30, Nine Months Ended September 30, Full Year Estimated 2019
Net income (loss) $14 $(27) Guidance as of October 24, 2019. 2019 2018 2019 2018 September 30, 2019 December 31, 2018 2019 2018 2019 2018 2019 2018 (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. 2019 2018 2019 2018 Three Months Ended September 30, Contract Transitions (b)
Adjusted EBITDA $125 $122 (e) Includes certain other items that are added back under the definition of Adjusted EBITDA in Covanta Energy, LLC's credit agreement. 2019 2018 Q3 2018 Organic Growth (a) % Waste Transactions (c) Total Changes Q3 2019
Net cash provided by operating activities $25 $84 (Unaudited)(In millions, except per share amounts) (Unaudited) (Unaudited, in millions) (Unaudited, in millions) (Unaudited, in millions) REVENUE: REVENUE:
Free Cash Flow $22 $85 OPERATING REVENUE: ASSETS (In millions, except per share amounts) OPERATING ACTIVITIES: Net income (loss) $ 14 $ (27) $ (2) $ 143 Net cash provided by operating activities $ 25 $ 84 $ 112 $ 147 $225 - $255 Waste and service revenue: Waste and service:
Reconciliations of non-GAAP measures can be found in the exhibits to this press release. Waste and service revenue $ 353 $ 332 $ 1,039 $ 977 Current: Net (loss) income $ (2) $ 143 Depreciation and amortization expense 55 53 165 162 Add: Changes in restricted funds - operating (a) 13 18 18 7 15 - 20 EfW tip fees $ 163 $ 155 EfW tip fees $ 155 $ 10 6.5 % $ 4 $ (6) $ 8 $ 163
Energy revenue 81 81 247 257 Cash and cash equivalents $ 65 $ 58 Adjustments to reconcile net (loss) income to net cash provided by operating activities: Interest expense 36 37 108 111 Less: Maintenance capital expenditures (b) (16) (17) (81) (95) (130 - 120) EfW service fees 114 104 EfW service fees 104 2 2.2 % (5) 13 10 114
Recycled metals revenue 19 23 61 72 Restricted funds held in trust 25 39 Depreciation and amortization expense 165 162 Income tax benefit (5) (3) (6) (34) Free Cash Flow $ 22 $ 85 $ 49 $ 59 $120 - $145 Environmental services (a) 36 36 Environmental services 36 % 36
Other operating revenue 12 20 38 62 Receivables (less allowances of $8 and $8, respectively) 307 338 Amortization of deferred debt financing costs 3 4 Impairment charges (a) 2 49 3 86 Municipal services (b) 64 55 Municipal services 55 3 5.7 % 6 9 64
Total operating revenue 465 456 1,385 1,368 Prepaid expenses and other current assets 78 64 Net gain on sale of business and investments (a) (49) (217) Net gain on sale of businesses and investments (b) (1) (7) (49) (217) (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. Other (c) 8 9 Other revenue 9 1 6.2 % (1) 8
OPERATING EXPENSE: Total Current Assets 475 499 Impairment charges (a) 3 86 Loss on extinguishment of debt (c) 3 3 Intercompany (d) (34) (27) Intercompany (27) (5) (1) (6) (34)
Plant operating expense 325 308 1,038 987 Property, plant and equipment, net 2,465 2,514 Loss on extinguishment of debt (a) 3 Property insurance recoveries, net (7) Total waste and service 353 332 Total waste and service 332 11 3.4 % (1) 11 21 353
Other operating expense, net 10 17 43 44 Restricted funds held in trust 8 8 Stock-based compensation expense 20 18 Capital type expenditures at client owned facilities (d) 8 5 28 28 (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: Energy revenue: Energy:
General and administrative expense 29 27 90 85 Intangible assets, net 263 279 Equity in net income from unconsolidated investments (4) (3) Debt service billings in excess of revenue recognized (1) (1) (1) Energy sales 66 67 Energy sales 67 (2) (3.1) % 2 (1) (1) 66
Depreciation and amortization expense 55 53 165 162 Goodwill 321 321 Deferred income taxes (9) (32) Business development and transaction costs 1 1 2 4 Three Months Ended September 30, Nine Months Ended September 30, Capacity 9 13 Capacity 13 (3) (26.4) % (4) 9
Impairment charges (a) 2 49 3 86 Other assets 266 222 Dividends from unconsolidated investments 5 1 Severance and reorganization costs 2 1 6 5 2019 2018 2019 2018 Other (e) 6 Other 6 % 6 6
Total operating expense 421 454 1,339 1,364 Total Assets $ 3,798 $ 3,843 Other, net 5 (5) Stock-based compensation expense 5 4 20 18 Maintenance capital expenditures $ (16) $ (17) $ (81) $ (95) Total energy 81 81 Total energy 81 0.3 % 2 (2) 1 81
Operating income 44 2 46 4 LIABILITIES AND EQUITY Change in working capital, net of effects of acquisitions and dispositions (33) (14) Adjustments to reflect Adjusted EBITDA from unconsolidated      investments 6 5 18 16 Net maintenance capital expenditures paid but    incurred in prior periods (1) 2 (7) (10) Recycled metals revenue: Recycled metals:
OTHER (EXPENSE) INCOME: Current: Changes in noncurrent assets and liabilities, net 8 1 Other (e) 3 2 11 7 Capital expenditures associated with construction      of Dublin EfW facility (1) (22) Ferrous 11 14 Ferrous 14 (3) (21.0) % (3) 11
Interest expense (36) (37) (108) (111) Current portion of long-term debt $ 16 $ 15 Net cash provided by operating activities 112 147 Adjusted EBITDA $ 125 $ 122 $ 303 $ 325 Capital expenditures associated with the New York      City MTS contract (2) (9) (19) (9) Non-ferrous 8 9 Non-ferrous 9 (1) (15.4) % (1) 8
Net gain on sale of business and investments (a) 1 7 49 217 Current portion of project debt 8 19 INVESTING ACTIVITIES: Capital type expenditures at client owned facilities (d) (8) (5) (28) (28) Capital expenditures associated with organic      growth initiatives (9) (3) (14) (18) Total recycled metals 19 23 Total recycled metals 23 (4) (18.8) % (4) 19
Loss on extinguishment of debt (a) (3) (3) Accounts payable 63 76 Purchase of property, plant and equipment (121) (158) Cash paid for interest (64) (42) (123) (115) Total capital expenditures associated with growth    investments (c) (11) (13) (33) (49) Other revenue (f) 12 20 Other revenue 20 (9) (43.5) % (9) 12
Other (expense) income, net (1) 1 (1) Accrued expenses and other current liabilities 252 333 Acquisition of businesses, net of cash acquired 2 (50) Cash paid for taxes, net (1) (5) (2) Capital expenditures associated with property    insurance events (4) Total revenue $ 465 $ 456 Total revenue $ 456 $ (1) (0.3) % $ 1 $ 10 $ 9 $ 465
Total other (expense) income (36) (33) (58) 102 Total Current Liabilities 339 443 Proceeds from the sale of assets, net of restricted cash 28 125 Equity in net income from unconsolidated investments (1) (1) (4) (3) Total purchases of property, plant and equipment $ (28) $ (28) $ (121) $ (158)
Income (loss) before income tax benefit and equity in net income      from unconsolidated investments 8 (31) (12) 106 Long-term debt 2,457 2,327 Property insurance proceeds 7 Adjustments to reflect Adjusted EBITDA from unconsolidated      investments (6) (5) (18) (16) OPERATING EXPENSE: OPERATING EXPENSE:
Income tax benefit 5 3 6 34 Project debt 126 133 Payment of indemnification claim related to sale of asset (7) Dividends from unconsolidated investments 5 1 (c)  Total growth investments represents investments in growth opportunities, including organic growth        initiatives, technology, business development, and other similar expenditures. Plant operating expense: Plant operating expense:
Equity in net income from unconsolidated investments 1 1 4 3 Deferred income taxes 372 378 Investment in equity affiliate (9) Adjustment for working capital and other (20) 15 (18) (15) Plant maintenance $ 62 $ 55 Plant maintenance $ 55 $ 7 12.4 % $ $ $ 7 $ 62
Net income (loss) $ 14 $ (27) $ (2) $ 143 Other liabilities 127 75 Other, net (1) (4) Net cash provided by operating activities $ 25 $ 84 $ 112 $ 147 Capital expenditures associated with growth      investments $ (11) $ (13) $ (33) $ (49) Other plant operating expense 262 253 Other plant operating expense 253 3 1.0 % 1 4 8 262
Total Liabilities 3,421 3,356 Net cash used in investing activities (101) (87) UK business development projects (3) (1) (4) Total plant operating expense 325 308 Total plant operating expense 308 9 3.1 % 1 5 15 325
Weighted Average Common Shares Outstanding: Equity: FINANCING ACTIVITIES: Investment in equity affiliate (1) (9) Other operating expense 10 17 Other operating expense 17 (6) (6) 10
Basic 131 130 131 130 Preferred stock ($0.10 par value; authorized 10 shares; none issued and      outstanding) Proceeds from borrowings on long-term debt 75 765 Asset and business acquisitions, net of cash acquired (46) 2 (50) General and administrative 29 27 General and administrative 27 3 3 29
Diluted 133 130 131 132 Common stock ($0.10 par value; authorized 250 shares; issued 136 shares,      outstanding 131 shares) 14 14 Proceeds from borrowings on revolving credit facility 441 474 Total growth investments $ (12) $ (62) $ (41) $ (103) Depreciation and amortization 55 53 Depreciation and amortization 53 1 2 2 55
Additional paid-in capital 853 841 Payments on long-term debt (12) (532) Impairment charges 2 49 Total operating expense $ 405 $ 7 $ 1 $ 7 $ 15 $ 419
Earnings (Loss) Per Share: Accumulated other comprehensive loss (51) (33) Payments on revolving credit facility (375) (713) Total operating expense $ 421 $ 454 Operating income (loss) excluding      impairment charges $ 51 $ (8) $ (1) $ 3 $ (6) $ 46
Basic $ 0.11 $ (0.21) $ (0.02) $ 1.10 Accumulated deficit (439) (334) Payments on project debt (16) (21)
Diluted $ 0.10 $ (0.21) $ (0.02) $ 1.09 Treasury stock, at par (1) Payment of deferred financing costs (1) (9) Operating income $ 44 $ 2 (a) Reflects performance on a comparable period-over-period basis, excluding the impacts of transitions and transactions.
Total Equity 377 487 Cash dividends paid to stockholders (100) (98) (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.
Cash Dividend Declared Per Share $ 0.25 $ 0.25 $ 0.75 $ 0.75 Total Liabilities and Equity $ 3,798 $ 3,843 Payment of insurance premium financing (20) (20) Plus: impairment charges 2 49 (c) Includes the impacts of acquisitions, divestitures, new projects and the addition or loss of operating contracts.
Other, net (8) (4) Operating income excluding impairment charges $ 46 $ 51
(a) For additional information, see Exhibit 4 of this Press Release. Net cash used in financing activities (16) (158) Note: Certain amounts may not total due to rounding.
Effect of exchange rate changes on cash, cash equivalents and restricted cash (2) 2 (a) Includes the operation of material processing facilities and related services provided by our Covanta Environmental Solutions business.
Net decrease in cash, cash equivalents and restricted cash (7) (96) (b) Consists of transfer stations and the transportation component of our NYC Marine Transfer Station contract.
Cash, cash equivalents and restricted cash at beginning of period 105 194 (c) Includes waste brokerage, debt service and other revenue not directly related to EfW waste processing activities.
Cash, cash equivalents and restricted cash at end of period $ 98 $ 98 (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.
(a) For additional information, see Exhibit 4 of this Press Release. (f) Consists primarily of construction revenue.
Note: Certain amounts may not total due to rounding.

 

Three Months Ended September 30, Metric 2019 Guidance 2018Actual Covanta Holding Corporation Exhibit 1 Covanta Holding Corporation Exhibit 2 Covanta Holding Corporation Exhibit 3 Covanta Holding Corporation Exhibit 4 (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. Covanta Holding Corporation Exhibit 5 Covanta Holding Corporation Exhibit 6 Covanta Holding Corporation Exhibit 7 Operating Metrics Exhibit 8
2019 2018 Adjusted EBITDA $420 - $445 $457 Consolidated Statements of Operations Consolidated Balance Sheets Consolidated Statements of Cash Flow Consolidated Reconciliation of Net Income (Loss) and Net Cash Provided by Operating Activities      to Adjusted EBITDA (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. Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow Supplemental Information Revenue and Operating Income Changes - Q3 2018 to Q3 2019 (Unaudited)
(Unaudited, $ in millions) Free Cash Flow $120 - $145 $100 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. (Unaudited, $ in millions) (Unaudited, $ in millions) Three Months Ended September 30,
Revenue $465 $456 Reconciliations of non-GAAP measures can be found in the exhibits to this press release. Three Months Ended September 30, Nine Months Ended September 30, As of Nine Months Ended September 30, Three Months Ended September 30, Nine Months Ended September 30, (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. Three Months Ended September 30, Nine Months Ended September 30, Full Year Estimated 2019 2019 2018
Net income (loss) $14 $(27) Guidance as of October 24, 2019. 2019 2018 2019 2018 September 30, 2019 December 31, 2018 2019 2018 2019 2018 2019 2018 (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. 2019 2018 2019 2018 Three Months Ended September 30, Contract Transitions (b) EfW Waste
Adjusted EBITDA $125 $122 (e) Includes certain other items that are added back under the definition of Adjusted EBITDA in Covanta Energy, LLC's credit agreement. 2019 2018 Q3 2018 Organic Growth (a) % Waste Transactions (c) Total Changes Q3 2019 Tons: (in millions)
Net cash provided by operating activities $25 $84 (Unaudited)(In millions, except per share amounts) (Unaudited) (Unaudited, in millions) (Unaudited, in millions) (Unaudited, in millions) REVENUE: REVENUE: Tip fee- contracted 2.28 2.25
Free Cash Flow $22 $85 OPERATING REVENUE: ASSETS (In millions, except per share amounts) OPERATING ACTIVITIES: Net income (loss) $ 14 $ (27) $ (2) $ 143 Net cash provided by operating activities $ 25 $ 84 $ 112 $ 147 $225 - $255 Waste and service revenue: Waste and service: Tip fee- uncontracted 0.48 0.46
Reconciliations of non-GAAP measures can be found in the exhibits to this press release. Waste and service revenue $ 353 $ 332 $ 1,039 $ 977 Current: Net (loss) income $ (2) $ 143 Depreciation and amortization expense 55 53 165 162 Add: Changes in restricted funds - operating (a) 13 18 18 7 15 - 20 EfW tip fees $ 163 $ 155 EfW tip fees $ 155 $ 10 6.5 % $ 4 $ (6) $ 8 $ 163 Service fee 2.74 2.37
Energy revenue 81 81 247 257 Cash and cash equivalents $ 65 $ 58 Adjustments to reconcile net (loss) income to net cash provided by operating activities: Interest expense 36 37 108 111 Less: Maintenance capital expenditures (b) (16) (17) (81) (95) (130 - 120) EfW service fees 114 104 EfW service fees 104 2 2.2 % (5) 13 10 114 Total tons 5.49 5.08
Recycled metals revenue 19 23 61 72 Restricted funds held in trust 25 39 Depreciation and amortization expense 165 162 Income tax benefit (5) (3) (6) (34) Free Cash Flow $ 22 $ 85 $ 49 $ 59 $120 - $145 Environmental services (a) 36 36 Environmental services 36 % 36 Tip Fee revenue per ton:
Other operating revenue 12 20 38 62 Receivables (less allowances of $8 and $8, respectively) 307 338 Amortization of deferred debt financing costs 3 4 Impairment charges (a) 2 49 3 86 Municipal services (b) 64 55 Municipal services 55 3 5.7 % 6 9 64 Tip fee- contracted $ 53.93 $ 52.36
Total operating revenue 465 456 1,385 1,368 Prepaid expenses and other current assets 78 64 Net gain on sale of business and investments (a) (49) (217) Net gain on sale of businesses and investments (b) (1) (7) (49) (217) (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. Other (c) 8 9 Other revenue 9 1 6.2 % (1) 8 Tip fee- uncontracted $ 85.22 $ 80.27
OPERATING EXPENSE: Total Current Assets 475 499 Impairment charges (a) 3 86 Loss on extinguishment of debt (c) 3 3 Intercompany (d) (34) (27) Intercompany (27) (5) (1) (6) (34) Average tip fee $ 59.36 $ 57.13
Plant operating expense 325 308 1,038 987 Property, plant and equipment, net 2,465 2,514 Loss on extinguishment of debt (a) 3 Property insurance recoveries, net (7) Total waste and service 353 332 Total waste and service 332 11 3.4 % (1) 11 21 353 EfW Energy
Other operating expense, net 10 17 43 44 Restricted funds held in trust 8 8 Stock-based compensation expense 20 18 Capital type expenditures at client owned facilities (d) 8 5 28 28 (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: Energy revenue: Energy: Energy sales: (MWh in millions)
General and administrative expense 29 27 90 85 Intangible assets, net 263 279 Equity in net income from unconsolidated investments (4) (3) Debt service billings in excess of revenue recognized (1) (1) (1) Energy sales 66 67 Energy sales 67 (2) (3.1) % 2 (1) (1) 66 Contracted 0.55 0.53
Depreciation and amortization expense 55 53 165 162 Goodwill 321 321 Deferred income taxes (9) (32) Business development and transaction costs 1 1 2 4 Three Months Ended September 30, Nine Months Ended September 30, Capacity 9 13 Capacity 13 (3) (26.4) % (4) 9 Hedged 0.76 0.77
Impairment charges (a) 2 49 3 86 Other assets 266 222 Dividends from unconsolidated investments 5 1 Severance and reorganization costs 2 1 6 5 2019 2018 2019 2018 Other (e) 6 Other 6 % 6 6 Market 0.38 0.33
Total operating expense 421 454 1,339 1,364 Total Assets $ 3,798 $ 3,843 Other, net 5 (5) Stock-based compensation expense 5 4 20 18 Maintenance capital expenditures $ (16) $ (17) $ (81) $ (95) Total energy 81 81 Total energy 81 0.3 % 2 (2) 1 81 Total energy 1.69 1.62
Operating income 44 2 46 4 LIABILITIES AND EQUITY Change in working capital, net of effects of acquisitions and dispositions (33) (14) Adjustments to reflect Adjusted EBITDA from unconsolidated      investments 6 5