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Articles from 2019 In July


Need to Know

Indonesia Returns Illegally Imported Waste to France, Hong Kong

Weekly Grain Movement – Holidays deliver slower sales

Indonesia returned seven shipping containers of illegally imported waste back to France and Hong Kong on July 29. This marks the most recent move by a Southeast Asian nation to send back trash misleadingly labeled as recycled materials.

The containers—five headed back to Hong Kong and two to France—housed a combination of trash, plastic waste and hazardous materials. The Indonesian capital of Jakarta recently ramped up its monitoring of imported waste as part of a pushback against “serving as a dumping ground for foreign trash.”

Last month, Indonesia returned a shipment of wasted paper from Canada that was imported via the U.S. because it was contaminated with plastic, rubber and diapers. In addition, several years ago, a private business in Canada had shipped 103 containers of trash labeled as mixed plastic recyclables concealing an unsorted mix of waste, including adult diapers, to the Philippines. Canada recently took back its trash after a legal battle between the two countries ensued.

Phys Org has more details:

Indonesia has returned seven shipping containers of illegally imported waste to France and Hong Kong, an official said Tuesday, marking the latest move by a Southeast Asian nation to send back rubbish to their wealthy places of origin.

The containers were loaded with a combination of garbage, plastic waste and hazardous materials in violation of import rules, according to customs officials on Batam Island near Singapore.

"The containers left on Monday and some officials were there to see the ship depart," head of local custom office Susila Brata told AFP Tuesday.

Read the full article here.

Need to Know

BioHiTech Sells Stake in Gold Medal Group for $2.25M

Deal

BioHiTech Global Inc., a technology and services company that provides sustainable waste management solutions, just announced the sale of its 2.2 percent stake in Gold Medal Group to Gold Medal Equity LLC, an entity owned by Kinderhook Industries, for $2.25 million in cash. BioHiTech acquired its stake in Gold Medal in January 2018 in exchange for 500,000 shares of its common stock.

"We are pleased to have completed the sale of our stake in Gold Medal Group to help us focus our financial resources on the growth of our HEBioT resource recovery technology in the Northeast U.S.," said Frank E. Celli, CEO of BioHiTech Global, in a statement. "Over the past two years, our relationship with Gold Medal Group and Kinderhook has strengthened to include their $5.5 million investment into our HEBioT development subsidiary this past December. By monetizing our ownership in Gold Medal Group, we free up capital to support the operations of our first HEBioT facility in Martinsburg, W. Va., while maintaining a portfolio comprised solely of technology assets focused on achieving cost-effective landfill diversion, repurposing waste into alternative fuel and providing data analytics to help customers reduce waste generation. We look forward to continuing to grow our business and build long-term value for our stockholders with the help of our partners at Gold Medal Group and Kinderhook Industries."

Need to Know

Connecticut, Delaware Move Forward with Plastic Bag Enforcements

Plastic Bag

Beginning August 1, Connecticut consumers will pay a 10-cent tax on all single-use plastic bags, with an outright ban on all single-use plastic bags set for July 1, 2021.

FOX 61 News reports that the tax is projected to generate $27.7 million in the current fiscal year and $26.8 million in the fiscal year that begins July 1, 2020. Exceptions include plastic bags provided by stores to hold meat, seafood and loose produce, as well as newspaper and dry-cleaning bags. The tax will, however, apply to restaurants that use plastic bags for takeout.

In addition, Delaware’s Gov. John Carney signed legislation to ban plastic bags and reduce litter across the state.

At the Partnership for the Delaware Estuary on July 29, Carney joined members of the General Assembly and environmental advocates to sign House Bill 130 and Senate Substitute 1 for Senate Bill 5. Both laws aim to protect Delaware communities from litter and protect Delaware’s environment and wildlife from the harmful effects of discarded waste. 

House Bill 130 will ban the use of single-use plastic bags and encourage a shift to reusable bags in the state. Senate Substitute 1 for Senate Bill 5 will address the problem of individuals dumping large quantities of trash on public and private property by increasing penalties for unlawful dumping and creating a Litter Investigation and Enforcement Fund.

“We live in a beautiful state. We should keep it that way,” said Carney in a statement. “One of the best ways we can take pride in our communities is to keep them clean. That’s why I was proud to stand with mayors, county executives and other local leaders recently to announce the Delaware Anti-Litter Alliance, a coalition of public officials committed to keeping our state litter free. And that’s why I was pleased to sign these bills into law on Monday. These new laws will help us protect Delaware communities from litter, protect our environment and protect Delaware wildlife. Thank you to members of the General Assembly and Delawareans up and down our state who have pledged to help Keep DE Litter Free.”

WTNH News 8 has more information:

Consumers across Connecticut will start paying a .10 cent tax on all single use plastic bags starting on August 1st. There will be an outright ban on single-use plastic bags on July 1, 2021.

Retailers will pay the tax of their sales tax returns, it’s estimated to bring in more than $25 million each year. The tax even applies to restaurants that use plastic bags for takeout.

Smaller bags in produce and meat sections will not be taxed.

Read the full article here.

Toyota North America to Reduce Operations Emissions Up to 40%

Toyota Toyota-solar.jpg

Toyota Motor North America (TMNA) announced it is committing to aggressively reduce its carbon output in the United States by entering into Virtual Power Purchase Agreements (VPPAs). It will use them to reduce emissions from its North American operations by up to 40 percent over the next three years.

The move represents a major step toward Toyota's Environmental Challenge 2050 goal of cutting global emissions from plant operations to zero by 2050.

Under the VPPAs, which the company expects to commence later this year, TMNA will contract with renewable energy providers to generate wind and solar power that will be provided directly to regional electric grids. The supply of renewable power is expected to reduce use of fossil fuels while improving the sustainability of the electric grid in the area.

By powering its operations from the enhanced grid and applying Renewable Energy Credits earned by funding the generation of renewable electricity, Toyota expects to offset emissions from its facilities in North America.

"Toyota has long been defined by its commitment to responsible environmental practices, and we're proud to build upon that great legacy today," said Kevin Butt, general manager and regional environmental sustainability director for Toyota Motor North America, in a statement. "We are committed to setting an example of sustainability that goes beyond vehicles to show how a company can significantly reduce the environmental impact of its operations. By cutting our U.S. emissions by 40 percent, we will be that much closer to our goal of having a net positive impact on the environment by the middle of this century."

Toyota-Emissions-Reduction-Infographic.jpg

Toyota's VPPA program is the result of more than six years of research into how to reduce and offset emissions from the company's operations, working in partnership with Massachusetts Institute of Technology, the National Renewable Energy Lab, the Rocky Mountain Institute and others. It is part of a wider effort across the company to reduce the environmental impact of enterprise operations as it also works to limit vehicle emissions.

This endeavor supports Toyota's Environmental Challenge 2050. Launched in 2015, the challenge sets out six objectives for the company's global operations, including:

  • A 90 percent reduction in global average CO2 emissions from new vehicles versus 2010 levels.
  • The complete elimination of CO2 emissions from the entire vehicle lifecycle; zero emissions at all manufacturing plants worldwide.
  • Minimizing water usage and implementing water discharge management protocols.
  • Promoting global deployment of end-of-life vehicle treatment and recycling.
  • Connecting and promoting nature conservation activities outside of the Toyota Group in the communities the company operates.
Need to Know

New York’s Otsego County Begins Foam Recycling Program

styrofoam

Residents in Otsego County, N.Y., can now recycle foam polystyrene through a county program, thanks to a $50,000 grant from the Foam Recycling Coalition (FRC). The county’s program will focus on receiving foam cups, plates, takeout containers, egg cartons, trays and blocks from local commercial businesses and self-delivery from residents.

The new grant funding allows Otsego County to purchase and install a densifier, finish its polystyrene processing center build-out, collect materials and focus on education and outreach. “We’re excited and grateful for this award from the Foam Recycling Coalition,” said Karen Sullivan, Otsego County’s planning and solid waste director, in a statement. “Our new polystyrene processing center will divert more material from our landfill, saving county taxes and positively impacting our environment.” 

The county committed to establishing a foam polystyrene recycling program as part of Otsego County’s 2018 Solid Waste Management Plan. The program partners with local nonprofit Arc Otsego, which will provide staffing at the existing ReUse Center, and the county will assist with promotion and marketing.

“Otsego County has shown a progressive attitude toward diverting as much county materials as possible,” said Lynn Dyer, president of the Foodservice Packaging Institute, which houses the coalition, in a statement. “The county’s latest efforts on foam recycling mean these valuable materials are being recovered instead of landfilled.”

The county, which has about 60,000 residents among 24 communities, supports recycling of traditional materials, while also providing options for batteries, electronics, mattresses, medications and fluorescent lightbulbs.

The grant is made possible through contributions to the FRC, which focuses exclusively on increased recycling of post-consumer foam polystyrene. Otsego County is the 11th grant recipient to receive FRC funding since 2015. More than 3 million additional residents in both the U.S. and Canada can recycle foam as a result of FRC grants.

Scrap Metal Recyclers Test Cloud Recycling Initiatives

technology recycle computers

The rapid pace of technological change is creating a new market for scrap metal recyclers as investment in cloud infrastructure continues to surge and the market for data center equipment is expected to grow.

In a recent report about the emergence of cloud recycling, The Wall Street Journal (WSJ) points out that cloud servers typically have a lifespan of just three years, and data center equipment contains components such as processors and fans that can be stripped out and resold in the electronics market, thus diverting valuable materials like aluminum, copper and steel from landfill.

According to WSJ, companies like Sims Metal Management and Electronic Recyclers International (ERI) are involved in separate trial projects to handle the recycling of small amounts of cloud-computing material in the U.S. Those pilots come on the heels of scrap metal companies seeking to strengthen profits that have been hit by trade barriers and weak commodity prices.

WSJ has more information:

The world’s $300 billion scrap-metal market is looking beyond junked cars and copy machines to a new prize: the cloud.

Large data centers are mushrooming in number as global demand grows for storage of everything from emails to videogames. Investment in cloud infrastructure has surged since 2015, and the market for data-center equipment is expected to grow at an average annualized rate of roughly 16% this year and next, according to Citigroup Inc.

Cloud servers, though, typically have a lifespan of only about three years, according to experts, meaning that some of the earliest equipment already has passed its use-by date. The rapid pace of technological change is creating a new market for companies such as Sims Metal Management Ltd. SMSMY -0.98% —one of America’s biggest recyclers by volume—and California-based Electronic Recyclers International Inc., known as ERI.

Read the full article here.

Advanced Disposal Grows Revenue, Reps Safety Culture in Q2 2019

Ponte Vedra, Fla.-based Advanced Disposal Services (ADS) released its second quarter 2019 earnings results. The company, which is being acquired by Waste Management, once again did not hold an earnings call, as it’s in an extended quiet period related to investor communications until the Waste Management transaction is closed.

Advanced Disposal reported revenue of $419.1 million for the three months ended June 30, 2019, versus $398.1 million in the same period of the prior year. Net loss during Q2 2019 was $1.0 million, or $0.01 per diluted share, and adjusted net income, which excludes certain gains and expenses, was $9.0 million, or $0.10 per diluted share.

“Our core business remains strong with 5.3 percent revenue growth including 3.2 percent of pricing gains during second quarter 2019,” said Richard Burke, CEO of Advanced Disposal, in a statement. “Additionally, our commitment to the customers we serve, the safety of our employees and the communities we operate in has never been stronger as we continue to live out our Service First, Safety Always culture. While we have experienced some headwinds year-to-date largely due to recycling, interest costs and leachate from wet operating conditions, we are pleased that we have generated $148.5 million of cash flow from operations and $76.5 million of adjusted free cash flow.”

Second quarter financial highlights include:

  • Revenue of $419.1 million, representing a 5.3 percent increase.
  • Achieved average yield of 3.2 percent.
  • Year-over-year growth from acquisitions was 1.5 percent.
  • Net loss was $1 million, or $0.01 per diluted share. This included charges of $9.7 million for a fee case settlement, $9.6 million for landfill remediation expenses and $3.6 million for merger-related costs, along with a net benefit of $13.7 million related to a 2012 tax audit settlement.
  • Achieved adjusted EBITDA was $110.0 million, which included a $2.6 million year-over-year headwind related to declining recycling prices and higher recycling processing costs.
  • Cash provided by operating activities was $148.5 million year-to-date.
  • Adjusted free cash flow year-to-date was $76.5 million.
  • Solid waste collection accounted for 66.7 percent of reported revenue ($279.4 million vs. $269.9 million in 2018). Solid waste disposal and transfer accounted for 36.4 percent ($152.5 million vs. $148.0 million in 2018). Sale of recyclables accounted for 0.6 percent, fuel charges and environmental charges accounted for 7.2 percent, other accounted for 8.3 percent and intercompany eliminations decreased 19.2 percent.

More information about the pending acquisition was discussed during Waste Management’s Q2 2019 earnings call on July 25. Jim Fish, CEO and president of Waste Management, stated that at the end of June, Advanced Disposal stockholders voted to approve Waste Management’s acquisition of the company.

“This stockholder approval is an important milestone in the process toward closing the transaction,” said Fish during the call. “In addition, and as expected, we received a second request from DOJ [Department of Justice Acquisition Management Bureau], and we continue to work with them to satisfy this request. We remain on track to complete the acquisition during the first quarter of 2020 as we continue our progress toward completing this transaction. We have dedicated teams working to position us to fully integrate ADS when the time comes.”

AgroFresh, Zest Labs Combine Technologies to Reduce Food Waste

More Than 70 Nations Pledge to Slash Food Waste

AgroFresh Solutions, a provider of produce freshness solutions, and Zest Labs, an AgTech company focused on the post-harvest fresh food supply chain, are integrating their technologies to strengthen their end-to-end solutions.

“We launched our FreshCloud platform in 2018 to provide customers around the world with end-to-end visibility into fresh produce quality and shelf life prediction through the supply chain,” says Jordi Ferre, CEO of Philadelphia-based AgroFresh. “To further accelerate the Transit Insights module within our FreshCloud platform, we used our plant physiology knowledge and expertise and applied it to the best IoT [Internet of Things] technology available via Zest Labs.”

AgroFresh will incorporate San Jose, Calif.-based Zest Labs’ Zest Fresh solution into its FreshCloud Transit Insights platform. The agreement will utilize both companies’ resources to help growers, packers and retailers increase visibility into produce shelf life and reduce food waste.

“The strategic partnership between the two companies combined AgroFresh’s decades-long plant physiology expertise with Zest Labs’ freshness management and analytics technology with a shared vision to increase visibility into produce shelf life, improve operations and reduce food waste,” says Ferre.

Zest Fresh prevents the creation of waste by ensuring each pallet is delivered to the retailer with sufficient freshness for their sell through and consumption by the consumer. If, however, a pallet with only three days of shelf life is identified, that information could be used to route it to a food bank or other purpose to ensure it is consumed quickly and not wasted.

“The Zest Fresh technology intelligently manages the handling and quality of produce pallets from field to retail, using sophisticated sensors and hardware to provide real-time information to customers,” says Ferre. “FreshCloud Transit Insights arms customers with actionable information to maximize produce quality, safety and freshness and ensure smart distribution.”

Predictive analytics and machine-learning technology power Zest Fresh. Data is collected using IoT condition sensors and autonomous wireless access points throughout the supply chain, from the grower, to the shipper, to the retailer.

“AgroFresh’s offering of Zest Fresh is significant as they are a trusted global expert in post-harvest science with [more than] 3,500 customers worldwide and can quickly expand Zest Fresh into new markets and with new types of fresh produce,” said Peter Mehring, CEO of Zest Labs, in a statement. “Our collective science-based, data-driven solutions and shared market vision for ensuring delivered freshness and reducing food waste provide a foundation for a successful partnership.”

The technology behind Zest Fresh is made up of real-time predictive analytics and machine learning that can help efficiency while driving consistency through best practice adherence at a pallet level.

“We believe that our FreshCloud platform, strengthened by our collaboration with Zest Labs, will positively impact our customers by empowering them to make better real-time decisions to reduce food waste and create a more sustainable fresh produce supply chain,” says Ferre.

Ameresco to Launch Solar System on Capped Westport, Mass., Landfill

westport-mass-solar-3.JPG

Solar developer Ameresco is launching a 622-kilowatt direct current ground-mounted solar system at the Westport, Mass., landfill in the third quarter of 2019. It will create power for about 100 homes and generate $650,000 in revenue for the town over 20 years from a lease and tax payment. 

Over the same term, the project will reduce greenhouse gas emissions by about 10,700 metric tons and preserve an estimated 13,000 acres of forest, according to David Anderson, Ameresco executive vice president and director.

Ameresco is selling the output to the Commonwealth of Massachusetts under the Solar Massachusetts Renewable Target (SMART) program, managed by the Department of Energy. SMART makes incentive payments to parties providing solar to the grid.

As far as payout to Westport, says Tim King, town administrator, “We will get about a $33,000 a year lease payment in lieu of having to pay property taxes. And that is for a property that is essentially providing no other benefit.”

The town is fairly rural with no sewer lines or wastewater treatment plant and limited public water.

“So, there are not a lot of opportunities for economic development … This solar operation is like having a small economic development project without some of the challenges that typically come with it, like traffic volume and having to upgrade roads and streets,” says King.

westport-mass-solar-1.JPG

The town had sent out requests for proposals in 2009 but put the project on hold when the state decided to change the rules around charges to utilities for power. And both the federal government and state were changing tax credits, creating uncertainty around the viability of the project. 

About a year ago, when Massachusetts had finalized regulations and spelled out how utilities would be compensated, Westport moved forward, says King.

Ameresco takes full risk for building, owning and operating its solar projects while the town incurs no out-of-pocket expenses.

“We make it financially viable for us by determining capacity and trying to maximize the scale we think we can get. We also receive an investment tax credit, and Massachusetts’ incentives under SMART help,” says Anderson.

The company has 20 projects in Massachusetts, one in Connecticut and one in New York. They are all in the seven-figure-plus range, says Anderson, adding that the industry averages between 8 and 12 percent return on the equity invested.

Landfill solar projects come with both advantages and tough challenges.

Sites are relatively large and flat and require no clearcutting. They provide easy access for heavy construction equipment. And there is limited shading from vegetation. But it takes strategy to ensure the landfill cap is not penetrated. Developers must assess for settlement issues and design around gas monitoring systems and wells.

“We use ballast systems to ensure we don’t penetrate the cap. Ideally, we like to work on landfills capped for about 10 years, so material becomes compacted and has settled. And we can’t trench, so electrical conduit systems must be above ground,” says Anderson.

Plus, the permitting process can be tedious, adding time even if there are not delays like Westport experienced amid regulatory changes.

westport-mass-solar-4.jpg

The project was dedicated to a local resident and chairman of the town’s Energy Committee, Tony Connors, who was instrumental in seeing the labor-intensive project through.

“It is an odyssey that took 10 years to bring to fruition. Connors brought Ameresco to the table after another company withdrew its proposal during drawn-out negotiations with the state,” says King.

Beyond Massachusetts, Ameresco is now seeing interest in solar investments among government, institutional and commercial customers who have goals of reducing their carbon footprint.

But Anderson advises that there could be more change that could impact viability of these projects, especially for developers who will see a reduction in their federal investment tax credit over the next three years.

“I would encourage municipalities who are interested, that have landfills and are good candidates to look into this soon. You can usually procure a contract and negotiate terms on a closed landfill in three to nine months,” he explains. 

Despite Commodity-related Headwinds, WCN Remains on Track for 2019

Omaha, Neb., Rejects $4M Bid to Process Recyclables

Worthing F. Jackman, who recently assumed the role of president and CEO of Waste Connections Inc. (WCN), kicked of the company’s second quarter 2019 earnings call welcoming back Ronald J. Mittelstaedt, who has returned from his temporary leave of absence and assumed the role of executive chairman of the board of directors.  

Mittelstaedt has stepped down from his day-to-day role as CEO to address matters affecting his family.

Mittelstaedt

“First off, I’d like to thank our employees, everyone on today’s call and everyone for the thousands of cards my family and I have received over the past couple months,” said Mittelstaedt on the call. “I am happy to be back and pleased to claim the role of executive chairman. I remain committed to the company, and as a continuing employee, I look forward to assisting in several areas, including culture, solid waste and acquisitions. Exiting the day-to-day responsibilities as CEO provides sufficient time for me to continue to address health matters affecting my family. No matter who you are, regardless of your profession or title, family should always come first.”

“I look forward to the continued success of the company under Worthing, who has been a full part of the leadership team driving the success of Waste Connections over the last 20 years,” he added. “When I temporarily stepped aside earlier this year, Worthing stepped in and assumed the role of our executive officer, consistent with a management succession plan approved by our board. He and our long-tenured team did not miss a beat, continuing to implement our growth strategy and drive further improvements in safety, employee development and retention, while moving the company forward in other areas. Our board has great confidence in him as our new CEO, and we believe that he is the right person to lead the company.”

Jackman then went on to discuss WCN’s Q2 results. Revenue for the quarter was $1.37 billion, up from $1.24 billion in Q2 2018. Operating income was $222.1 million, compared to $210.7 million in Q2 2018.

He added that solid waste pricing growth of 5 percent drove underlying solid waste collections, which was offset by an impact from higher-margin, commodity-related activity, primarily from recycling and renewable fuels and a diluted impact from prior acquisitions completed in the previous year.

“Our team delivered on the commitments under their control, but the ongoing erosion in recycled commodity value and a precipitous drop in the value of renewable fuels impacted our overall results,” explained Jackman during the call. “In spite of these commodity-related headwinds, we have already generated adjusted free cash flow of more than $500 million and are on track to meet our original expectation for underlying adjusted free cash flow for the whole year.”

Net income attributable to Waste Connections in the second quarter was $148.8 million, or $0.56 per share on a diluted basis of 264.5 million shares. In the year ago period, the company reported net income of $138.7 million, or $0.52 per share on a diluted basis of 264.3 million shares.

Adjusted net income attributable to WCN in the second quarter was $181.3 million, or $0.69 per share, versus $172.3 million, or $0.65 per share, in the prior year period. Adjusted EBITDA in the second quarter was $425.3 million and 31.1 percent of revenue, as compared to adjusted EBITDA of $395.5 million and 31.9 percent of revenue in the prior year period.

“Solid waste pricing growth of over 5 percent, along with a sequential 200 basis points increase in solid waste volumes, drove underlying solid waste collection, transfer and disposal margin expansion of approximately 70 basis points in the quarter. This helped offset a portion of the impact from lower-than-expected contributions from higher-margin, commodity-related activities, primarily recycling and renewable fuels and the dilutive margin impact of acquisitions completed since the prior year period. Our team delivered on the commitments within their control, but the ongoing erosion in recycled commodity values and a precipitous drop in renewable fuel credits impacted overall results,” said Jackman in a statement. “In spite of these commodity-related headwinds, we have already generated adjusted free cash flow of more than $500 million, putting us on track to meet our original expectation for underlying adjusted free cash flow for the full year.”

“As anticipated, we have already completed an outsized year of acquisition activity with almost half of the year still ahead of us, as we have closed approximately $160 million in total annualized revenue,” added Jackman. “We are particularly pleased with the approximate 65 percent average reduction in safety-related incidents in the three largest acquisitions completed over the last several months, and we look forward to continued improvement, as we are accelerating the timing to automate the residential fleet in our largest acquired location. In addition, new contract awards are trending above average. These wins provide foundations for further growth next year but require incremental capex in the current year, which, along with the accelerated fleet conversion referenced above, totals approximately $35 million and will impact reported adjusted free cash flow. The strength of our financial profile and free cash flow generation keeps us well positioned for additional acquisitions and organic growth opportunities, while maintaining the flexibility to increase the return of capital to shareholders.”

Additional Q2 2019 highlights include:

  • Revenue of $1.370 billion, up $179 million, or 10.5 percent for the whole year.
  • Adjusted EBITDA of $425.3 million, or 31.1 percent of revenue. During the July 30 call with investors, WCN’s Chief Financial Officer Mary Anne Whitney explained: “This is consistent with the early update we provided in June, with about $8.5 million below our original outlook for the period due to the decline in commodity-related revenues and the associated EBITDA impact.”
  • Net cash provided by operating activities was $753 million.
  • Adjusted free cash flow was $503.9 million, or 19.3 percent of revenue.
  • Acquired annualized revenue was approximately $160 million.
  • For the six months ended June 30, 2019, revenue was $2.614 billion, as compared to revenue of $2.380 billion in the year ago period. Operating income was $407 million, which included $31.3 million of expenses primarily related to impairments and other items related to the termination of certain contracts and other acquisition-related costs; this compared to operating income of $399.4 million for the same period in 2018, which included $18.3 million of expenses primarily related to impairments and other items related to the termination of certain contracts and other acquisition-related costs.
  • Net income attributable to WCN was $274.5 million, or $1.04 per share on a diluted basis of 264.4 million shares. In the year ago period, WCN reported net income of $263.6 million, or $1 per share on a diluted basis of 264.5 million shares.
  • Adjusted net income attributable to WCN was $345.2 million, or $1.31 per share, compared to $320.9 million, or $1.21 per share, in the year ago period. Adjusted EBITDA for the six months ended June 30, 2019, was $811 million and 31 percent of revenue, as compared to $752.4 million and 31.6 percent of revenue in the prior year period.

WCN also updated its outlook for 2019, which assumes no change in the current economic environment, explained Whitney. The company’s outlook excludes any impact from additional acquisitions that may close during the year and expensing of transaction-related items.

  • Revenue for full-year 2019 is estimated to be approximately $5.375 billion, as compared to the company’s original revenue outlook of approximately $5.310 billion due primarily from higher-than-anticipated contributions from acquisitions and partially offset by greater-than-expected declines in recycling revenue and in the value of renewable energy credits from qualifying landfill gas bills, noted Whitney during the call.
  • Net income attributable to WCN is estimated to be approximately $573 million, and adjusted EBITDA is estimated to be approximately $1.675 billion, or about 31.2 percent of revenue, as compared to the company’s original adjusted EBITDA outlook of $1.705 billion.
  • Capital expenditures are estimated to be approximately $600 million, as compared to its original capital expenditures outlook of approximately $575 million, due primarily to $35 million of incremental capital expenditures primarily related to contracts awarded during 2019.
  • Net cash provided by operating activities is estimated to be approximately $1.51 billion, as compared to WCN’s original outlook of $1.525 billion, and adjusted free cash flow, including the incremental $35 million in capital expenditures noted above, is estimated to be approximately $915 million, or about 17 percent of revenue, as compared to WCN’s original adjusted free cash flow outlook of approximately $950 million.

“The underlying fundamentals of our solid waste business remain strong, and we are extremely pleased with our year-to-date performance,” concluded Jackman. “Improving trends in safety and turnover, which trended lower in Q2, are indicative of our local leadership and the dedication of our 18,000 employees, who work tirelessly every day to drive our results. Strength in solid waste pricing, positive volume trends and underlying EBITDA margin expansion in solid waste collection, transfer and disposal position us well for the remainder of the year. As noted earlier, underlying adjusted free cash flow is on track to achieve our original $950 million outlook for the year.”