Meridian Waste Solutions Inc. reported its financial and operational results for 2016, which included $31.7 million in revenues for the firm, growth of 135 percent compared to its 2015 results.
The firm’s revenue growth was driven by acquisitions. But it also achieved organic revenue growth of 7.6 percent. Its adjusted EBITDA amounted to $7.9 million.
Net loss for the 12 months ended December 31, 2016 decreased by $1.5 million to $17.7 million or $13.95 per share, as compared to $19.2 million or $26.58 per share in the 12 months ended December 31, 2015.
“Our team accomplished a lot over the past 12 months in regard to our operating structure, assets, capital markets strategy and the company now has a solid platform to build upon which we are excited about for the future,” Meridian Chairman and CEO Jeff Cosman said in a statement. “Our core operating strengths that are key to our long-term success include experienced leadership, vertically integrated assets and operations, long-term contracts, strong customer service and commitment to safety. The recent acquisition of The CFS Group demonstrates a key element of our strategy to create the vertically integrated infrastructure needed to expand our operations. We are able to acquire underutilized assets such as a landfill and integrate our network of collection and transfer to improve the efficiencies and margins of the operation in the market.”
Previously acquired Christian Disposal and Eagle Ridge represented $13.6 million and $3.6 million in revenue respectively. Organic revenue growth of 7.6 percent was driven by additional customers and price increases, according to the firm.
Gross profit improved by $5.6 million to $9.0 million in the 12 months ended December 31, 2016, as compared to a $3.4 million gross margin profit in the 12 months ended December 31, 2015. The 28.3 percent gross profit percentage for 2016 represents a 3.3 percent increase from 2015. The company says it is using the synergies of its recent acquisitions, such as creating density in some of its routes, which resulted in cost savings. In addition, there was a decrease in landfill costs as the company began internalizing its waste.
Subsequent to the end of 2016, the firm completed a $12.4 million public offering and was listed on NASDAQ.
For 2017 the firm is projecting revenues of $63 million without any additional acquisitions. It also is projecting EBITDA of $13 million.