Ponte Vedra, Fla.-based Advanced Disposal Services (ADS), which is being acquired by Waste Management, released its third quarter 2019 earnings results, showing an increase in revenue and a continued focus on providing "excellent service" to customers.
The company reported revenue of $419.5 million for the three months ended September 30, 2019, versus $400.6 million in the same period of the prior year. Advanced Disposal’s net income during Q3 2019 was $3.6 million, or $0.04 per diluted share, and adjusted net income, which excludes certain gains and expenses, was $16.9 million, or $0.19 per diluted share.
"Our operating philosophy remains focused on safely providing an excellent service experience for our customers, coupled with disciplined pricing to generate strong cash flow for our shareholders," said Richard Burke, CEO of Advanced Disposal Services, in a statement. "During the third quarter, we were able to achieve 4.7 percent revenue growth led by a 3 percent increase in average yield. Year-to-date, we have also overcome headwinds related to recycling, leachate and interest costs to achieve $229.2 million in cash flow from operations and $111 million in adjusted free cash flow."
Q3 2019 financial highlights include:
- Revenue of $419.5 million, representing a 4.7 percent increase.
- Achieved total organic growth of 4.1 percent, which included average yield of 3 percent and volume growth of 1.1 percent.
- Year-over-year growth from acquisitions was 1.5 percent.
- Net income was $3.6 million, or $0.04 per diluted share.
- Achieved adjusted EBITDA of $116.5 million, which included a $4.8 million year-over-year headwind related to declining recycling prices and higher recycling processing costs.
- Cash provided by operating activities was $229.2 million year-to-date.
- Adjusted free cash flow was $111 million year-to-date.
- Solid waste collection accounted for 66.8 percent of reported revenue ($280.1 million vs. $262.7 million in 2018). Solid waste disposal accounted for 36.3 percent ($152.4 million vs. $146.8 million in 2018). Sale of recyclables accounted for 0.5 percent, fuel charges and environmental charges accounted for 7.1 percent, other accounted for 8.3 percent and intercompany eliminations decreased 19.0 percent.
More information about the pending acquisition was discussed during Waste Management’s Q3 2019 earnings call on October 23. Jim Fish, CEO and president of Waste Management, stated: “We continue to make progress toward closing this transaction, and we remain on track to complete the acquisition during the first quarter of 2020.”