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8-K - FORM 8-K - COVANTA HOLDING CORP | c22678e8vk.htm |
Exhibit 99.1
COVANTA INCREASES SHARE REPURCHASE
AUTHORIZATION AND
DECLARES REGULAR QUARTERLY CASH DIVIDEND
Additional Share Repurchases of
$100 Million Approved;
Dividend
Payment Set at $0.075 Per Share
MORRISTOWN, N.J., September 22, 2011 — Covanta Holding Corporation (NYSE: CVA) (“Covanta” or the “Company”) today announced that the Board of Directors has authorized an additional $100 million in share repurchases, bringing the total authorized amount to $400 million.
Between the third quarter of 2010 and the second quarter of 2011, the Company has repurchased over 13.5 million shares at a cost of approximately $219 million, representing approximately 8.8% of the outstanding common stock.
In addition, the Company announced that the Board of Directors has declared a quarterly cash dividend of $0.075 per share, payable on October 14, 2011 to stockholders of record as of the close of business on October 3, 2011.
“Today’s announcement demonstrates our commitment to continue to actively return capital to shareholders in the absence of any immediate investment needs for core growth opportunities. We believe that our dividend and stock repurchase programs are important aspects of our continued efforts to enhance shareholder value,” said Sanjiv Khattri, Covanta’s Executive Vice President and CFO.
The Company commenced declaring regular quarterly cash dividends of $0.075 per share, representing $0.30 per share on an annualized basis, in the first quarter of 2011. The adoption of the regular quarterly cash dividend followed the payment in July 2010 of a special cash dividend in the amount of $1.50 per share, or $233 million in total.
The Company expects to fund the share repurchases using available sources of liquidity, including its cash generated from the business and proceeds from asset sales. The repurchases will be made at management’s discretion in accordance with applicable federal securities law, which may employ a variety of methods including open market purchases, privately negotiated transactions, block trades or other available alternatives. The amount and timing of any repurchases will be determined based on an evaluation of a variety of factors at the time of any repurchases. The share buyback authorization does not obligate the Company to acquire any specific number of shares in any period, and may be modified, suspended or discontinued at any time without notice to shareholders.
About Covanta
Covanta is an internationally recognized owner and operator of large-scale
Energy-from-Waste and renewable energy projects and a recipient of the Energy
Innovator Award from the U.S. Department of Energy’s Office of Energy
Efficiency and Renewable Energy. Covanta’s 44 Energy-from-Waste
facilities provide communities with an environmentally sound solution to their
solid waste disposal needs by using that municipal solid waste to generate
clean, renewable energy. Annually, Covanta’s modern Energy-from-Waste
facilities safely and securely convert approximately 20 million tons of
waste into 9 million megawatt hours of clean renewable electricity and
more than 9 billion pounds of steam that are sold to a variety of
industries. For more information, visit www.covantaenergy.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 (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 and its subsidiaries, or general
industry or broader economic performance in global markets in which Covanta
operates or competes, 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 assumptions and other important factors that could cause actual
results to differ materially from those forward-looking statements with respect
to Covanta, include, but are not limited to, the risk that Covanta may not
successfully close its announced or planned acquisitions or projects in
development and those factors, risks and uncertainties that are described in
periodic securities filings by Covanta with the SEC. Although Covanta believes
that its plans, 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 future financial condition and results of operations, as well
as any forward-looking statements, are subject to change and 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.
Contacts
Investors
Alan Katz
1.862.345.5456
IR@covantaenergy.com
Media
James Regan
1.862.345.5216
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