Jeremy L. Dillon
RW Monitor
3/21/2014
Valhi Inc., the parent company of Waste Control Specialists, expects WCS to begin operating profitably in 2014 after suffering an operating loss in 2013, although the company warned it would not be opposed to seeking “strategic alternatives” if cash flow does not improve, according to a Securities and Exchange Commission filing this week. WCS suffered an operating loss of $22.6 million in 2013, a number Valhi attributed to an industry-wide shortage of shipping containers needed to transport LLRW, but with the delivery of its first type-B cask, Valhi does not expect that to be a problem going forward. “We believe WCS can become a viable, profitable operation; however, we do not know if we will be successful in improving WCS’ cash flows,” the filing said. “We have in the past, and we may in the future, consider strategic alternatives with respect to WCS. We could report a loss in any such strategic transaction.”
Transportation issues played a significant role in WCS’ financial performance in 2013, the filing said. “In the latter half of 2013 and into the first quarter of 2014 we have been limited in the volume of waste we can receive for disposal due to the shortage of shipping containers needed to transport LLRW,” the filing said. “We have a contract to purchase three additional shipping containers, the first of which has been delivered and is awaiting regulatory approval which we expect to have late in the first quarter of 2014. We expect to receive the other two shipping containers by mid-2014. We believe the receipt of these containers will resolve our transportation issues.” While the first of the casks has been delivered to WCS, the Nuclear Regulatory Commission still needs to issue a certificate of compliance before it can begin shipping waste.
