Question-and-Answer Session
Operator
(Operator instructions) Your first question comes from Paul Clegg - Jefferies.
Paul Clegg - Jefferies & Company
Just wanted to understand the impact of the Veolia acquisition on your full-year guidance versus what you talked about last time. You were talking about the lower end of the range last time and now you're talking about the midpoint. How much does Veolia figure into that?
Mark Pytosh
Just to give you some perspective, the initial six plants are about 2/3 of the EBITDA of the total and we're going to have them for 1.5 quarters.
Paul Clegg - Jefferies & Company
So if we look at what you said before, previously you talked about adding about $60 million in 2010 EBITDA. Can you sort of extrapolate that backwards then?
Mark Pytosh
Yes.
Paul Clegg - Jefferies & Company
Okay, so it should be around a similar amount? Actually on the same topic of the $60 million in 2010 EBITDA it seems like you closed the acquisition somewhat earlier than what you originally expected. Do you see the potential to benefit from kind of additional synergy in 2010 given that you have several months of 2009 to start that integration process?
Tony Orlando
That potential is there. This is Tony, and certainly I think importantly now that we've had the opportunity for the last six weeks or so to be operating these facilities, we're really quite pleased with the people. And as I mentioned, we've already integrated the regions so that the teams are working well together. We've gotten a great head start, I think, on the synergy.
So of course we're going to work hard to create as many efficiencies as we can out of that transaction, and also by doing things like the item that I mentioned where we acquired the 40% share of the facility in Montgomery County, Pennsylvania. So we're certainly glad to get it done early. We're getting a good jump on it and we're going to do everything we can to maximize the value, both for our shareholders and for the client communities.
Paul Clegg - Jefferies & Company
Just to make sure I understood the answer to the first part of my question. If we sort of take the 1.5 quarters of $60 million that would be the contribution to overall EBITDA, so when we look at you kind of talking moving from the low end of EBITDA guidance to the midpoint, it sounds like most of that really is coming from Veolia.
- To read the full transcript on Seeking Alpha, click here »



