Meridian Waste reported financial and operational results for the three-month period ended March 31, 2017 with the company reaching $10.9 million in revenues—a 46 percent jump from the $7.5 million in revenues it posted in the first quarter of 2016.
The growth was primarily due to the firm’s acquisitions in the past year. Its organic revenue growth was 9.2 percent.
Meridian Waste’s revenue is generated primarily by collection services provided to residential customers, as well as commercial and temporary roll-off customers. In St. Louis, the company is bidding for additional municipal contracts in the market, as well as pursuing acquisitions in the Midwest.
The company said its recent acquisition of the CFS Group demonstrates its strategy to create a vertically integrated infrastructure needed to expand its operations. It acquired assets, such as a landfill, and has integrated these assets into the company’s collection and transfer network to improve the efficiencies and margins.
“It was a very busy and productive start to 2017, as we solidified our platform in the St. Louis market by winning new business, entered a new market with potential based on vertical integration in the Richmond, Virginia area with the CFS Group acquisition, and advanced our capital markets strategy by uplisting to Nasdaq,” Chairman and CEO Jeff Cosman said in a statement. “As we continue to execute within our two existing markets, there is plenty of opportunity we are evaluating to further expand nationally. Additionally, we are excited about growth opportunities we have identified with both Meridian Innovations and Meridian Materials.”
Gross profit improved by $0.9 million to $3.9 million in the quarter, as compared to a $3.0 million gross profit in the three months ended March 31, 2016. Adjusted EBITDA was $3.2 million; including a full quarter pro-forma effect of the CFS acquisition.
Net loss for the quarter decreased by $3.4 million to $3.0 million, as compared to $6.4 million in 2016.