Waste Connections Inc. has purchased a Minnesota hauler and reported a dip in its second quarter net income.
The Woodlands, Texas-based company said in a news release it purchased St. Paul, Minn.-based SKB Environmental Inc., which provides solid and industrial waste transfer and disposal services primarily in Minnesota's Twin Cities region and has annual revenue of about $30 million. “We believe SKB provides an attractive platform for additional acquisitions in this new market," said Ronald Mittelstaedt, Waste Connections chairman and CEO.
Waste Connections said its net income fell 5 percent to $42.4 million, or 34 cents per diluted share, for the quarter ended June 30, compared with year-ago income of $44.4 million, or 39 cents per diluted share. Revenue increased 5.3 percent to $410.7 million compared with $390.2 million in the 2011 quarter.
For the first half net income dropped 9 percent to $73.7 million, or 61 cents per diluted share. In the year-ago period net income totaled $81 million, or 71 cents per diluted share. Revenue increased 9.1 percent to $787.2 million, compared with $721.7 million in 2011.
Expenses included the costs connected to the company’s relocation to Texas from California and acquisition-related costs.
"The first half of 2012 played out about as expected with revenue, adjusted operating income before depreciation and amortization, and adjusted free cash flow at or above our expectations,” Mittlelstedt said. “However, the tepid economy and potential near-term decreases in recycled commodity values could provide additional headwinds in the second half of the year."