COVANTA HOLDING CORPORATION (NYSE:CVA) Files An 8-K Regulation FD Disclosure
Item 7.01.
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Regulation FD Disclosure.
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year-end financial statement close process, the Company made one
revision to its 2016 financial statements and a further
adjustment to its calculation of adjusted earnings per share
(Adjusted EPS), both as compared to the unaudited financial
information presented in its press release dated February 15,
2017.
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1.
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In 2016, the market performance for certain stock
compensation awards was not met and as a result no stock was received by employees. As such, the $2.4 million deferred tax asset related to these grants should have been written off to tax expense in our year-end financial statements, as no deduction will be taken on the tax return. This reversal increased 2016 income tax expense and decreased net income by $2.4 million and decreased the previously reported basic and diluted earnings per share (“Diluted EPS”) and Adjusted EPS. As a result of this change, both Diluted EPS and Adjusted EPS decreased by $0.02. |
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2.
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In connection with the fourth quarter 2016 sale of the
biomass facilities, the Company recorded a $14 million FIN 48 uncertain tax position liability, which increased 2016 tax expense. This additional tax expense was properly included in the Companys calculation of net income and basic and Diluted EPS; however, the Company is revising its calculation of Adjusted EPS to exclude this item given its non-recurring nature. As a result of this change, Adjusted EPS increased by $0.11. |
net income of $(1) million was revised to $(4) million.
Previously reported full year basic and Diluted EPS of $(0.01)
was revised to $(0.03) and previously reported Adjusted EPS of
$(0.15) was revised to $(0.06). Neither of these adjustments
impacted 2016 reported Adjusted EBITDA (an important non-GAAP
financial metric) or Cash Flow provided by operating activities
or Free Cash Flow (an important non-GAAP financial metric),
provided by the Company.
this Form 8-K.This information includes certain non-GAAP
financial information as identified in Exhibit 99.2.
to Item 7.01 of this Form 8-K and shall not be deemed filed for
the purposes of Section 18 of the Securities Exchange Act of
1934, or incorporated by reference in any filing under the
Securities Act of 1933 or the Securities Exchange Act of 1934,
except as shall be expressly set forth by specific reference in
such filing.
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Item 9.01.
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Financial Statements and Exhibits.
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(a)
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Financial Statements of Business Acquired Not Applicable
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(b)
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Pro Forma Financial Information Not Applicable
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(c)
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Exhibits
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Exhibit No.
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Exhibit
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99.2
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Earnings Materials, dated February 27, 2017.
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About COVANTA HOLDING CORPORATION (NYSE:CVA)
Covanta Holding Corporation is a holding company. The Company, through its subsidiaries, owns and operates infrastructure for the conversion of waste to energy, as well as other waste disposal and renewable energy production businesses. It operates through North America segment, which consists of waste and energy services operations located primarily in the United States and Canada. The energy-from-waste (EfW) serves over two markets as both a sustainable waste management solution and as a source of clean energy. The Company processes approximately 20 million tons of solid waste annually. The Company operates and/or have ownership positions in over 45 EfW facilities, which are primarily located in North America, and over 10 additional energy generation facilities, including other renewable energy production facilities in North America (wood biomass and hydroelectric). The Company operates EfW projects in approximately 20 states and over two Canadian provinces. COVANTA HOLDING CORPORATION (NYSE:CVA) Recent Trading Information
COVANTA HOLDING CORPORATION (NYSE:CVA) closed its last trading session up +0.25 at 16.25 with 1,393,667 shares trading hands.
