truck

Fueled by Progressive Merger, Waste Connections Reaches $3.4B in Revenues in 2016

Its full-year figure represented a 37 percent increase over its 2015 figure of $2.117 billion.

Toronto-based Waste Connections posted revenue of $1.049 billion in the fourth quarter of 2016, helping it reach $3.376 billion for its calendar year. Fueled by its merger with Progressive Waste Solutions that was completed in June, its full-year figure represented a 37 percent increase over its 2015 figure of $2.117 billion.

Fourth quarter revenue included $497.9 million from the Progressive Waste acquisition. Operating income, which included $23.0 million of impairments and other items primarily related to the expected divestiture of certain assets acquired in the Progressive Waste acquisition and $16.0 million of items also related to that transaction, was $139.2 million compared to $101.7 million in the fourth quarter of 2015, which included acquisition-related transaction costs of $2.9 million associated with the acquisition of Rock River Environmental Services.

Net income attributable to Waste Connections in the fourth quarter was $85.6 million, or $0.49 per share on a diluted basis of 175.9 million shares. In the year ago period, the Company reported net income attributable to Waste Connections of $52.1 million, or $0.42 per share on a diluted basis of 123.1 million shares.

Adjusted net income attributable to Waste Connections in the fourth quarter was $120.3 million, or $0.68 per share, versus $59.8 million, or $0.49 per share, in the prior year period.

Adjusted EBITDA in the fourth quarter was $325.4 million, as compared to adjusted EBITDA of $175.6 million in the prior year period. Adjusted net income attributable to Waste Connections, adjusted net income attributable to Waste Connections per diluted share and adjusted EBITDA, all non-GAAP measures, primarily exclude the impact of acquisition-related items and impairments and other operating items, as reflected in the detailed reconciliation in the attached tables.

“Our acquisition of Progressive Waste made 2016 a transformational year for Waste Connections,” Ronald J. Mittelstaedt, Waste Connections chairman and CEO, said in a statement. “More importantly, our culture and operating playbook enabled us to drive significant improvements in safety, quality of revenue and operating performance within these operations, all pacing 12 to 18 months ahead of our initial expectations. This was evident in the fourth quarter as our results once again exceeded expectations. This underlying strength, together with the previously announced acquisition of Groot Industries and continuing improvements in recycled commodity values and E&P waste activity, should position us well for 2017,”

For the year, operating income, which included $118.3 million of items primarily related to the Progressive Waste acquisition and $27.7 million of impairments and other items, was $452.3 million, compared to operating loss of $61.5 million in the prior year. In 2015, the Company recorded net impairment charges of approximately $497.1 million against its E&P segment.

Net income attributable to Waste Connections in 2016 was $246.5 million, or $1.60 per share on a diluted basis of 154.1 million shares. In 2015, the Company reported net loss attributable to Waste Connections of $95.8 million, or $0.78 per share on a diluted basis of 123.5 million shares.

Adjusted net income attributable to Waste Connections in 2016 was $395.2 million, or $2.57 per share, compared to $244.9 million, or $1.98 per share, in the prior year. Adjusted EBITDA in 2016 was $1.071 billion, as compared to $710.6 million in the prior year.

Waste Connections also announced its outlook for 2017, which assumes no change in the current economic environment. 

  • Revenue is estimated to be approximately $4.45 billion.
  • Adjusted EBITDA is estimated to be approximately $1.41 billion, or about 31.7 percent of revenue.
  • Adjusted free cash flow is estimated to be approximately $725 million, or about 16.3 percent of revenue

Waste Connections is the fourth major publicly traded solid waste firm to report its 2016 results. Last week, Republic Services, Waste Management and Covanta Holdings all reported their earnings.

TAGS: Haulers
Hide comments

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Publish