Waste Connections cites operating improvements in profitable results
Waste Connections cites operating improvements in profitable results
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Toronto-based Waste Connections Inc. says its revenue in the second quarter of 2016, which included $174.0 million from its acquisition of Progressive Waste Solutions Ltd., reached $727.6 million, as compared to revenue of $531.3 million in the comparable 2015 period.
Operating income, which included expenditures of $73.2 million in items primarily related to the Progressive Waste merger completed during the period, was $63.5 million, as compared to $110.0 million in the second quarter of 2015.
Net income attributable to Waste Connections in the quarter was $27.5 million, or 20 cents per share on a diluted basis of 140.6 million shares. In the year ago period, Waste Connections (pre-merger) reported net income of $57.4 million, or 46 cents per share on a diluted basis of 124.4 million shares.
Adjusted net income (minus the merger expenses) attributable to Waste Connections in the quarter was $93.2 million, or 66 cents per share, versus $61.6 million, or 50 cents per share, in the second quarter of 2015. Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) in the current year period was $233.6 million, as compared to adjusted EBITDA of $177.7 million in the second quarter of 2015.
“Better than expected solid waste volume growth and contribution from the recent combination with Progressive Waste enabled us to once again exceed our outlook for the period,” says Ronald J. Mittelstaedt, CEO and chairman of Waste Connections. “Solid waste margins, excluding the impact of the acquisitions completed since the prior year period, expanded approximately 110 basis points year-over-year. We believe this performance, together with pricing and operating improvement plans we’ve implemented in Progressive Waste operations, has already positioned our financial run-rate at or above the upper end of our previous outlook for the first year following the combination.”
Adds Mittelstaedt, “We had underestimated the opportunity for improvement within Progressive Waste’s operations and are encouraged by the organizational momentum to exceed original expectations as we look ahead.”
The CEO is not ruling out future acquisitions. “Acquisition dialogue remains robust, while continued strength in free cash flow provides the ability to fund both additional growth and return of capital to shareholders. To that end and as also announced today, our board authorized a share repurchase program for up to 5 percent of our outstanding shares over the next 12 months.”
The combination of Waste Connections and Progressive Waste was accounted for as a reverse merger using the acquisition method of accounting, according to Waste Connections.
Waste Connections describes itself as an integrated solid waste services company that provides waste collection, transfer, disposal and recycling services in the United States and Canada. Through its R360 Environmental Solutions subsidiary, Waste Connections also provides non-hazardous oilfield waste treatment, recovery and disposal services in the United States, including the Permian, Bakken and Eagle Ford Basins. Waste Connections serves more than 6 million residential, commercial, industrial and exploration and production customers in 40 states and the District of Columbia in the U.S. and six provinces in Canada. The company also provides intermodal services for the movement of cargo and solid waste containers in the Pacific Northwest.
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Source: Recycling Today
Waste Connections cites operating improvements in profitable results
<![CDATA[Toronto-based Waste Connections Inc. says its revenue in the second quarter of 2016, which included $174.0 million from its acquisition of Progressive Waste Solutions Ltd., reached $727.6 million, as compared to revenue of $531.3 million in the comparable 2015 period. Operating income, which included expenditures of $73.2 million in items primarily related to the Progressive Waste merger completed during the period, was $63.5 million, as compared to $110.0 million in the second quarter of 2015. Net income attributable to Waste Connections in the quarter was $27.5 million, or 20 cents per share on a diluted basis of 140.6 million shares. In the year ago period, Waste Connections (pre-merger) reported net income of $57.4 million, or 46 cents per share on a diluted basis of 124.4 million shares. Adjusted net income (minus the merger expenses) attributable to Waste Connections in the quarter was $93.2 million, or 66 cents per share, versus $61.6 million, or 50 cents per share, in the second quarter of 2015. Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) in the current year period was $233.6 million, as compared to adjusted EBITDA of $177.7 million in the second quarter of 2015. “Better than…