RWS Facility Services (RWS), Chadds Ford, Pennsylvania, has appointed Tom LaMartina as vice president of facility managed services. 

LaMartina will be responsible for overseeing the RWS sales and service organization. The company says the group provides support services to facilities in manufacturing, distribution, pharma and commercial offices.

“Tom brings to RWS his vast experience in successfully managing the sales and service operations of several billion-dollar facility service companies,” says Anthony Dilenno, president and CEO of RWS. “He has an impressive track record of increasing revenue and profitability in all his roles, which makes him an optimal fit for RWS as we continue to expand our facility managed services. We are excited to welcome him to RWS.”

LaMartina joins RWS after seven years at ISS Facility Services, most recently as senior vice president for the Specialized Services Division. He previously spent 10 years as senior vice president of ABM’s Southeastern region engineering and facilities division and seven years as the Northeastern regional vice president for Schindler Elevator.

RWS Facility Services is a facility management company that provides support services that ensure the functionality, efficiency and safety of a business sustainably and cost-effectively. RWS offers commercial waste, commodity and facility managed services. 

Amrep, a Charlotte, North Carolina-based manufacturer for the refuse industry, has launched the Ready Truck Program to eliminate or shorten the lead time to order and build a refuse collection vehicle. 

The Wastequip-owned company says in response to the pandemic, chassis manufacturers cut production, and many haulers have held back on purchases. According to a news release from Amrep, these actions have changed the standard production time for a chassis from 60 days to as many as 90 to 180 days. 

Rob Strange, director of refuse body sales for Amrep across North America, says the Ready Truck Program will offset the obstacles experienced throughout the industry in 2020 by keeping inventory and having trucks available for immediate delivery.

“This year, we are anticipating a spike in demand for refuse collection vehicles and have developed this program to stay ahead of pending challenges within the industry,” Strange says. “The Ready Truck Program will enable us to keep up the inventory of chassis now, so we can in return deliver Amrep trucks to our customers when they need them, instant availability.” 

In addition to the immediate availability of refuse collection trucks, Amrep says it plans to continue offering finance options for companies of all sizes, from independent operators to national haulers. According to a news release from Amrep, Amrep and Wastequip finance options consist of a fast application process, preserves cash and credit lines, rapid credit approval, competitive rates and 100 percent financing. 

LKQ Corp., headquartered in Chicago, has reported first-quarter 2021 results that show strength in key metrics such as overall profitability, segment margins and free cash flow.

LKQ provides original equipment recycled and aftermarket parts, replacement systems, components, equipment and services to repair and accessorize automobiles, trucks and recreational and performance vehicles. The company has operations in North America, Europe and Taiwan.

"We significantly exceeded our expectations for the quarter as our segment teams continue to embrace operational excellence and execute on our key initiatives,” says Dominick Zarcone, president and chief executive officer at LKQ Corp. “Our North America team delivered a 19.9 percent segment EBITDA (earnings before interest, taxes, depreciation and amortization) margin in the first quarter, the highest level in the company’s history. Additionally, our Specialty team delivered its highest quarterly organic revenue growth at 30.9 percent and first-quarter segment EBITDA margin of 13.4 percent. I am also pleased with the Europe Segment EBITDA margin of 9.6 percent in the quarter, a year-over-year improvement of 390 basis points. This level of performance gives us confidence regarding the progress of our 1 LKQ Europe program and our team’s ability to achieve the longer-term margin targets we set forth in 2019.”

According to its Q1 earnings call the morning of April 29, the increase in its specialty organic revenue for parts and services largely was because of strong demand across its recreational vehicle and auto and light truck product lines and from drop-shipment customers.

LKQ’s revenue for the first quarter totaled $3.2 billion, an increase of 5.7 percent as compared with $3 billion in the first quarter of 2020. For the first quarter of 2021, parts and services organic revenue increased 0.6 percent (2.2 percent on a per-day basis), while the net impact of acquisitions and divestitures decreased revenue 0.6 percent and foreign exchange rates increased revenue 4.2 percent, for a total parts and services revenue increase of 4.2 percent, the company says.

Organic revenue growth for the quarter reflects the annualization of the initial pandemic impact last March, LKQ notes. Through February, organic parts and services revenue was 4.4 percent lower on a per-day basis, primarily as a result of mobility restrictions from COVID-19. In March 2021 compared with a lower prior-year period, organic parts and services revenue grew by 15.7 percent on a per-day basis. Other revenue grew 27 percent in the first quarter of 2021, driven by higher scrap steel and platinum group metals prices, LKQ adds.

According to the company’s earnings call presentation, the average price for ferrous scrap increased from $128 per ton in Q1 2020 to $213 per ton in Q1 2021. Sequentially, the price of ferrous scrap increased $55 per ton, or 35 percent. The average rhodium and platinum scrap prices increased 141 percent and 37 percent, respectively, from Q1 2020 while average palladium prices were level with Q1 2020.

The company’s total aftermarket inventory procurement increased 2.7 percent in Q1 2021 compared with Q1 of 2020. However, purchases in North America and Europe were lower than projected owing to ocean freight-driven delays in shipments and overall pandemic-driven lower production volumes, the company noted in its earnings call presentation. Salvage purchases also decreased compared with the prior year primarily because of limitations on vehicles at auctions arising from the COVID-19 pandemic. Self-service vehicle purchases also declined owing to increased competition in the market in light of rising scrap steel and precious metals prices and a reduction in the number of locations relative to Q1 2020, LKQ says. The cost per vehicle in LKQ’s self-service operations increased 41 percent year over year in Q1 largely from increases in scrap steel and precious metal prices, the company noted, while the average cost per vehicle in its full-service salvage operations increased 30 percent year over year in light of limitations on vehicles at auctions arising from COVID-19, high used car prices and increases in scrap steel and precious metal prices.

Net income for the first quarter of 2021 was $266 million compared with $146 million for the same period in 2020, an increase of 81.9 percent.

On an adjusted basis, net income in the first quarter was $286 million compared with $176 million in the same period of 2020, a 62.4 percent increase.

Cash flow from operations totaled $523 million during the first quarter of 2021, up 169 percent from a year ago. Free cash flow in the quarter totaled $481 million, up 220 percent year over year. The company says it made $83 million of net repayments on borrowings during the first quarter, decreasing its net leverage to 1.4x EBITDA, LKQ says.

2021 outlook

Varun Laroyia, executive vice president and chief financial officer at LKQ, says, “Based on this strong start to the year and with confidence in our operating strengths and execution of our strategies, we are raising our 2021 outlook on profitability and free cash flow.”

For 2021, the company’s management says it is anticipating the following revised outlook:

• full-year parts and services revenue growth;
• diluted earnings per share attributable to LKQ stockholders in the range of $2.68 to $2.88;
• adjusted diluted EPS attributable to LKQ stockholders in the range of $3 to $3.20; and
• free cash flow in the range of $850 million to $950 million.

The company says this outlook is based on current conditions and recent trends and assumes current U.S. federal tax legislation remains unchanged, exchange rates for the Canadian dollar, euro and pound sterling hold near recent levels and the price of scrap and precious metals trend lower in the second half of the year. The outlook also is based on management’s current expectations regarding the recovery from the coronavirus outbreak, though changes in any of these conditions could affect LKQ’s ability to achieve these estimates, according to the company.

With a new presidential administration comes new directives for the nation’s Occupational Safety and Health Administration (OSHA). During the ISRI2021 convention and exposition, which has been online April 20-22 and April 27-29, Ryan Nolte, director of safety outreach at the Washington-based Institute of Scrap Recycling Industries (ISRI), outlined some of the changes in OSHA directives scrap recyclers must be aware of this year.

As of January, Jim Frederick has stepped in as OSHA’s acting administrator and deputy assistant secretary. Frederick spent 25 years in the Health, Safety and Environment Department of the United Steelworkers Union, serving as assistant director and principal investigator until 2019. Additionally, he has served on a number of safety and health groups, including the National Institute for Occupational Safety and Health (NIOSH) Board of Scientific Counselor; the ANSI Z10 standard committee; the U.S. committee that contributed to the ISO 45001 standard; the NIOSH NORA Traumatic Injury Prevention Council; the NIEHS Worker Training Program National Clearinghouse Advisory Committee; and the OSHA Metal Working Fluids Standard Advisory Committee.

“He has been in the OSHA and NIOSH world for a long time,” Nolte said of Frederick.

Nolte said OSHA increased the maximum penalties for serious OSHA violations by 11.8 percent as of Jan. 15. The maximum penalty for serious OSHA violations is now $13,653 per violation. Failure to abate in response to that violation is now $13,653 per day beyond the abatement date. He added that willful or repeated violations are now $136,532.

Nolte said OSHA’s National Emphasis Program (NEP), effective March 12, will affect scrap recyclers. The administration’s National Emphasis Programs are temporary programs that focus OSHA’s resources on particular hazards and high-hazard industries.

The administration’s NEP for hazardous machinery will take a close look at workplace amputations. From 2015 to 2019, amputations were the second-highest reported severe injury by scrap recyclers, only behind fractures.

“All amputations are going to get attention,” Nolte said. “If you have to contact OSHA about an amputation, most likely you will get an inspection.”

Additionally, Nolte said, OSHA is updating its inspection program that directs agency enforcement resources to establishments with the highest rates of injuries and illnesses under its site-specific targeting (SST) directive. He said SST selects establishments based on injury and illness data employers submitted for the 2017-2019 calendar years. The updated directive replaces SST 2016 and includes the creation of a new targeting category for establishments indicating consistent injury and illness rate increases over the three-year data collection period and allows records only for inspections to occur when a compliance safety and health officer determines incorrect data led to an establishment’s inclusion in the program to ensure OSHA will conduct a full inspection only when an employer has an actual elevated injury or illness experience.

Nolte said the industry also can expect stricter OSHA enforcement under the Biden administration. Under the Obama administration from 2013 to 2016, OSHA’s North American Industry Classification System (NAICS) enforcement 562920 led to 480 inspections. Under the Trump administration from 2017 to 2020, that same enforcement led to 390 inspections. Under the Biden administration, five inspections for this enforcement have occurred through March 15.

For NAICS enforcement 26111 under the Obama administration, 848 inspections occurred. Under the Trump administration, 589 inspections occurred. Under the Biden administration, 21 inspections have occurred through March 15.

Nolte added that inspection trends were similar for OSHA’s enforcement 423930 and 423130 as well.

Also new this year, Biden released an executive order Jan. 21 aimed at protecting worker health and safety. That executive order directs the Department of Labor and OSHA to issue updated guidance on COVID-19-related worker protections, which was completed Jan. 29. It also directs OSHA to consider issuing emergency temporary standards related to COVID-19, and that became a NEP March 12. That NEP directs employers to implement COVID-19 prevention measures, including conducting a hazard assessment, identifying a combination of measures that limit the spread of COVID-19 in the workplace, adopting measures to ensure workers who are infected or potentially infected are separated and sent home from the workplace and implementing protections from retaliation for workers who raise COVID-19-related concerns.

As of Jan. 14, OSHA issued citations related to COVID-19 that have totaled more than $4 million in penalties. Nolte said states with the highest number of citations include California, Michigan, Nevada and Washington.