WASTE CONNECTIONS REPORTS FOURTH QUARTER 2024 RESULTS AND PROVIDES 2025 OUTLOOK
Waste Connections (WCN) reported strong Q4 and full-year 2024 results, with full-year revenue reaching $8.920 billion, up 11.2% year-over-year. The company achieved net income of $617.6 million and adjusted EBITDA of $2.902 billion, representing a 32.5% margin.
For 2025, WCN provided guidance including revenue between $9.45-$9.60 billion, net income of $1.186-$1.224 billion, and adjusted EBITDA margin expansion of up to 80 basis points to 33.3%. The company expects adjusted free cash flow between $1.300-$1.350 billion.
Notable achievements in 2024 included record private company acquisitions totaling approximately $750 million in annualized revenue and significant improvements in employee retention, with turnover down over 1,000 basis points from 2022. The company maintains a strong balance sheet with year-end leverage below 2.7 times, providing flexibility for future acquisitions and sustainability investments.
Waste Connections (WCN) ha riportato risultati solidi per il quarto trimestre e per l'intero anno 2024, con un fatturato annuale che ha raggiunto 8,920 miliardi di dollari, in aumento dell'11,2% rispetto all'anno precedente. L'azienda ha ottenuto un reddito netto di 617,6 milioni di dollari e un EBITDA rettificato di 2,902 miliardi di dollari, rappresentando un margine del 32,5%.
Per il 2025, WCN ha fornito previsioni che includono un fatturato compreso tra 9,45-9,60 miliardi di dollari, un reddito netto di 1,186-1,224 miliardi di dollari e un'espansione del margine EBITDA rettificato fino a 80 punti base, raggiungendo il 33,3%. L'azienda prevede un flusso di cassa libero rettificato compreso tra 1,300 e 1,350 miliardi di dollari.
Tra i risultati notevoli nel 2024 ci sono state acquisizioni record di aziende private per un totale di circa 750 milioni di dollari in fatturato annualizzato e significativi miglioramenti nella retention dei dipendenti, con un turnover ridotto di oltre 1.000 punti base rispetto al 2022. L'azienda mantiene un forte bilancio, con un leverage a fine anno inferiore a 2,7 volte, offrendo flessibilità per future acquisizioni e investimenti nella sostenibilità.
Waste Connections (WCN) reportó resultados sólidos para el cuarto trimestre y para todo el año 2024, con ingresos anuales que alcanzaron 8,920 millones de dólares, un aumento del 11.2% en comparación con el año anterior. La compañía logró un ingreso neto de 617.6 millones de dólares y un EBITDA ajustado de 2,902 millones de dólares, lo que representa un margen del 32.5%.
Para 2025, WCN proporcionó una guía que incluye ingresos entre 9.45-9.60 mil millones de dólares, un ingreso neto de 1.186-1.224 mil millones de dólares y una expansión del margen EBITDA ajustado de hasta 80 puntos básicos, alcanzando el 33.3%. La compañía espera un flujo de efectivo libre ajustado entre 1.300 y 1.350 mil millones de dólares.
Logros notables en 2024 incluyeron adquisiciones récord de empresas privadas que totalizaron aproximadamente 750 millones de dólares en ingresos anualizados y mejoras significativas en la retención de empleados, con una rotación reducida en más de 1,000 puntos básicos desde 2022. La compañía mantiene un balance sólido, con un apalancamiento a fin de año por debajo de 2.7 veces, lo que proporciona flexibilidad para futuras adquisiciones e inversiones en sostenibilidad.
Waste Connections (WCN)은 2024년 4분기 및 연간 실적이 우수하다고 보고했으며, 연간 수익이 89억 2천만 달러에 달해 전년 대비 11.2% 증가했습니다. 이 회사는 6억 1천7백 60만 달러의 순이익과 29억 2천만 달러의 조정 EBITDA를 달성하여 32.5%의 마진을 나타냈습니다.
2025년을 위해 WCN은 94억 5천만-96억 달러의 수익, 11억 8천6백만-12억 2천4백만 달러의 순이익, 80bp까지의 조정 EBITDA 마진 확장을 포함하는 가이던스를 제공했습니다. 회사는 13억-13억 5천만 달러의 조정 자유 현금을 예상하고 있습니다.
2024년의 주목할 만한 성과로는 연간 수익이 약 7억 5천만 달러에 달하는 기록적인 민간 기업 인수와 2022년 대비 1,000bp 이상 감소한 직원 유지율 개선이 포함됩니다. 회사는 연말 레버리지가 2.7배 미만인 강력한 대차대조표를 유지하여 향후 인수 및 지속 가능성 투자에 대한 유연성을 제공합니다.
Waste Connections (WCN) a signalé de solides résultats pour le quatrième trimestre et pour l'année entière 2024, avec des revenus annuels atteignant 8,920 milliards de dollars, en hausse de 11,2 % par rapport à l'année précédente. L'entreprise a réalisé un bénéfice net de 617,6 millions de dollars et un EBITDA ajusté de 2,902 milliards de dollars, représentant une marge de 32,5 %.
Pour 2025, WCN a fourni des prévisions incluant des revenus compris entre 9,45-9,60 milliards de dollars, un bénéfice net de 1,186-1,224 milliards de dollars et une expansion de la marge EBITDA ajustée allant jusqu'à 80 points de base pour atteindre 33,3 %. L'entreprise s'attend à un flux de trésorerie libre ajusté compris entre 1,300 et 1,350 milliards de dollars.
Les réalisations notables en 2024 comprenaient des acquisitions d'entreprises privées record totalisant environ 750 millions de dollars en revenus annualisés et des améliorations significatives de la rétention des employés, avec un taux de rotation réduit de plus de 1 000 points de base par rapport à 2022. L'entreprise maintient un bilan solide avec un effet de levier en fin d'année inférieur à 2,7 fois, offrant une flexibilité pour de futures acquisitions et des investissements en durabilité.
Waste Connections (WCN) meldete starke Ergebnisse für das vierte Quartal und das gesamte Jahr 2024, mit einem Gesamtumsatz von 8,920 Milliarden Dollar, was einem Anstieg von 11,2% im Jahresvergleich entspricht. Das Unternehmen erzielte einen Nettogewinn von 617,6 Millionen Dollar und ein bereinigtes EBITDA von 2,902 Milliarden Dollar, was eine Marge von 32,5% darstellt.
Für 2025 gab WCN eine Prognose ab, die einen Umsatz zwischen 9,45-9,60 Milliarden Dollar, einen Nettogewinn von 1,186-1,224 Milliarden Dollar und eine Erweiterung der bereinigten EBITDA-Marge um bis zu 80 Basispunkte auf 33,3% umfasst. Das Unternehmen erwartet einen bereinigten freien Cashflow zwischen 1,300 und 1,350 Milliarden Dollar.
Bemerkenswerte Erfolge im Jahr 2024 umfassten Rekordübernahmen von Privatunternehmen mit einem jährlichen Umsatz von insgesamt etwa 750 Millionen Dollar und erhebliche Verbesserungen bei der Mitarbeiterbindung, wobei die Fluktuation um über 1.000 Basispunkte im Vergleich zu 2022 gesenkt wurde. Das Unternehmen hält eine starke Bilanz mit einem Verschuldungsgrad von unter 2,7 zum Jahresende, was Flexibilität für zukünftige Übernahmen und Investitionen in Nachhaltigkeit bietet.
- Revenue growth of 11.2% to $8.920 billion in 2024
- Record acquisitions of $750 million in annualized revenue
- Adjusted EBITDA margin expansion of 100 basis points to 32.5%
- Employee turnover reduction of over 1,000 basis points from 2022
- Strong balance sheet with leverage below 2.7x
- Projected revenue growth to $9.45-$9.60 billion in 2025
- Q4 2024 operating loss of $199.2 million due to $601.6 million in impairments
- Q4 2024 net loss of $196.0 million ($0.76 per share)
- Volume decline of 2.9% for full-year 2024
Insights
The Q4 2024 results and 2025 outlook reveal Waste Connections' operational excellence and strategic execution capabilities. The company achieved 11.2% revenue growth to
Three key elements underscore the company's strong competitive position:
- Operational Excellence: Employee turnover has decreased over
1000 basis points since 2022, driving operational efficiencies and supporting margin expansion. This improvement in human capital management is particularly notable in a labor-intensive industry. - Pricing Power:
7% solid waste core price growth demonstrates strong pricing power and ability to offset inflationary pressures while expanding margins. - Strategic Growth: Record acquisition activity of
$750 million in annualized revenue showcases both the company's integration capabilities and robust consolidation opportunities in the fragmented waste management sector.
The 2025 outlook projects continued momentum with revenue guidance of
Fourth Quarter and Full Year 2024 Highlights
- Strong finish to the year led by solid execution and accelerating improvement in operating trends in the fourth quarter, providing momentum for 2025
- Full year 2024 revenue of
$8.92 0 billion11.2% year over year - Net income(a) of
$617.6 million $1.23 9 billion$2.90 2 billion15.0% , and32.5% of revenue, up 100 basis points year over year - Net cash provided by operating activities of
$2.22 9 billion$1.21 8 billion - Record year of private company acquisitions of approximately
$750 million
Expectations for 2025
- Revenue in the range of
$9.45 billion $9.60 billion - Net income of
$1.18 6 billion$1.22 4 billion33.3% - Net cash provided by operating activities in the range of
$2.50 0 billion$2.57 5 billion$1.30 0 billion$1.35 0 billion$1.55 0 billion - Ongoing acquisition-related dialogue with strong pipeline, along with expectations for improving commodity-driven revenues, position for high end of range or above
"Q4 provided a solid finish to a year of extraordinary accomplishments for Waste Connections both financially, with double-digit growth in both revenue and adjusted EBITDA(b), and operationally, with accelerating improvements in employee engagement and retention, along with the integration of record levels of private company acquisition activity, which totaled approximately
"Our differentiated results in 2024 include 100 basis points adjusted EBITDA(b) margin expansion for industry-leading margin of
Mr. Mittelstaedt concluded, "We are extremely pleased by our industry-leading results in 2024 driven by approximately 24,000 dedicated employees whose efforts truly set us apart as we continued to execute on a proven playbook. We are well-positioned for another year of outsized growth in 2025 from price-led organic solid waste growth, with improving commodities and ongoing acquisition activity positioning us at or above the high end of our range of potential outcomes and normalized adjusted free cash flow(b) in excess of
Q4 2024 Results
Revenue in the fourth quarter totaled
Adjusted net income(b) in the fourth quarter was
Full Year 2024 Results
For the year ended December 31, 2024, revenue was
Net income for the year ended December 31, 2024 was
Adjusted net income(b) for the year ended December 31, 2024 was
2025 Outlook
Waste Connections also announced its outlook for 2025, which assumes no change in the current economic environment. The Company's outlook excludes expensing of transaction-related items. The outlook provided below is forward looking, and actual results may differ materially depending on risks and uncertainties detailed at the end of this release and in our periodic filings with the
- Revenue is estimated between
$9.45 0 billion$9.60 0 billion - Net income is estimated between
$1.18 6 billion$1.22 4 billion - Adjusted EBITDA(b) margin is estimated between
33.0% and33.3% of revenue, up 50 to 80 basis points year over year; - Net cash provided by operating activities is estimated between
$2.50 0 billion$2.57 5 billion - Capital expenditures are estimated to be between
$1.20 0 billion$1.22 5 billion$100 million $150 million - Adjusted free cash flow(b) is estimated between
$1.30 0 billion$1.35 0 billion
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(a) | All references to "Net income" refer to the financial statement line item "Net income attributable to Waste Connections". |
(b) | A non-GAAP measure; see accompanying Non-GAAP Reconciliation Schedule. |
Q4 2024 Earnings Conference Call
Waste Connections will be hosting a conference call related to fourth quarter earnings on February 13th at 8:30 A.M. Eastern Time. A live audio webcast of the conference call can be accessed by visiting investors.wasteconnections.com and selecting "News & Events" from the website menu. Alternatively, conference call participants can preregister by clicking here. Registered participants will receive dial-in instructions and a personalized code for entry to the conference call. A replay of the conference call will be available until February 20, 2025, by calling 877-344-7529 (within
Waste Connections will be filing a Form 8-K on EDGAR and on SEDAR (as an "Other" document) prior to markets opening on February 13th, providing the Company's first quarter 2025 outlook for revenue and adjusted EBITDA(b).
About Waste Connections
Waste Connections (wasteconnections.com) is an integrated solid waste services company that provides non-hazardous waste collection, transfer and disposal services, including by rail, along with resource recovery primarily through recycling and renewable fuels generation. The Company serves approximately nine million residential, commercial and industrial customers in mostly exclusive and secondary markets across 46 states in the
Safe Harbor and Forward-Looking Information
This press release contains forward-looking statements within the meaning of the safe harbor provisions of the
– financial tables attached –
CONTACT: | |
Mary Anne Whitney / (832) 442-2253 | Joe Box / (832) 442-2153 |
WASTE CONNECTIONS, INC. CONDENSED CONSOLIDATED STATEMENTS OF NET INCOME THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2023 AND 2024 (Unaudited) (in thousands of | ||||||||||||
Three months ended | Twelve months ended | |||||||||||
2023 | 2024 | 2023 | 2024 | |||||||||
Revenues | $ | 2,035,609 | $ | 2,260,283 | $ | 8,021,951 | $ | 8,919,591 | ||||
Operating expenses: | ||||||||||||
Cost of operations | 1,195,620 | 1,324,774 | 4,744,513 | 5,191,706 | ||||||||
Selling, general and administrative | 192,752 | 211,335 | 799,119 | 883,445 | ||||||||
Depreciation | 213,291 | 261,609 | 845,638 | 974,001 | ||||||||
Amortization of intangibles | 39,833 | 60,184 | 157,573 | 189,768 | ||||||||
Impairments and other operating items | 169,595 | 601,570 | 238,796 | 613,012 | ||||||||
Operating income (loss) | 224,518 | (199,189) | 1,236,312 | 1,067,659 | ||||||||
Interest expense | (69,728) | (82,419) | (274,642) | (326,804) | ||||||||
Interest income | 2,464 | 2,215 | 9,350 | 11,607 | ||||||||
Other income (expense), net | 4,135 | (2,256) | 12,481 | 10,471 | ||||||||
Income (loss) before income tax provision | 161,389 | (281,649) | 983,501 | 762,933 | ||||||||
Income tax (provision) benefit | (34,760) | 85,645 | (220,675) | (146,363) | ||||||||
Net income (loss) | 126,629 | (196,004) | 762,826 | 616,570 | ||||||||
Plus/(less): Net loss (income) attributable to noncontrolling interests | 124 | - | (26) | 1,003 | ||||||||
Net income (loss) attributable to Waste Connections | $ | 126,753 | $ | (196,004) | $ | 762,800 | $ | 617,573 | ||||
Earnings (loss) per common share attributable to Waste Connections' common shareholders: | ||||||||||||
Basic | $ | 0.49 | $ | (0.76) | $ | 2.96 | $ | 2.39 | ||||
Diluted | $ | 0.49 | $ | (0.76) | $ | 2.95 | $ | 2.39 | ||||
Shares used in the per share calculations: | ||||||||||||
Basic | 257,636,137 | 258,043,117 | 257,551,129 | 257,965,871 | ||||||||
Diluted | 258,303,370 | 258,043,117 | 258,149,244 | 258,662,190 | ||||||||
Cash dividends per common share | $ | 0.285 | $ | 0.315 | $ | 1.05 | $ | 1.17 | ||||
WASTE CONNECTIONS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (in thousands of | ||||||
December 31, | December 31, | |||||
ASSETS | ||||||
Current assets: | ||||||
Cash and equivalents | $ | 78,399 | $ | 62,366 | ||
Accounts receivable, net of allowance for credit losses of at December 31, 2023 and 2024, respectively | 856,953 | 935,027 | ||||
Prepaid expenses and other current assets | 206,433 | 229,519 | ||||
Total current assets | 1,141,785 | 1,226,912 | ||||
Restricted cash | 105,639 | 135,807 | ||||
Restricted investments | 70,350 | 78,126 | ||||
Property and equipment, net | 7,228,331 | 8,035,929 | ||||
Operating lease right-of-use assets | 261,782 | 308,198 | ||||
Goodwill | 7,404,400 | 7,950,406 | ||||
Intangible assets, net | 1,603,541 | 1,991,619 | ||||
Other assets, net | 100,048 | 90,812 | ||||
Total assets | $ | 17,915,876 | $ | 19,817,809 | ||
LIABILITIES AND EQUITY | ||||||
Current liabilities: | ||||||
Accounts payable | $ | 642,455 | $ | 637,371 | ||
Book overdraft | 14,855 | 14,628 | ||||
Deferred revenue | 355,203 | 382,501 | ||||
Accrued liabilities | 521,428 | 736,824 | ||||
Current portion of operating lease liabilities | 32,533 | 40,490 | ||||
Current portion of contingent consideration | 94,996 | 59,169 | ||||
Current portion of long-term debt and notes payable | 26,462 | 7,851 | ||||
Total current liabilities | 1,687,932 | 1,878,834 | ||||
Long-term portion of debt and notes payable | 6,724,771 | 8,072,928 | ||||
Long-term portion of operating lease liabilities | 238,440 | 272,107 | ||||
Long-term portion of contingent consideration | 20,034 | 27,993 | ||||
Deferred income taxes | 1,022,480 | 958,340 | ||||
Other long-term liabilities | 524,438 | 747,253 | ||||
Total liabilities | 10,218,095 | 11,957,455 | ||||
Commitments and contingencies | ||||||
Equity: | ||||||
Common shares: 257,659,921 shares issued and 257,600,479 shares outstanding at December 31, 2023; 258,067,487 shares issued and 258,019,389 shares outstanding at December 31, 2024 | 3,276,661 | 3,283,161 | ||||
Additional paid-in capital | 284,284 | 325,928 | ||||
Accumulated other comprehensive loss | (9,826) | (205,740) | ||||
Treasury shares: 59,442 and 48,098 shares at December 31, 2023 and 2024, respectively | - | - | ||||
Retained earnings | 4,141,690 | 4,457,005 | ||||
Total Waste Connections' equity | 7,692,809 | 7,860,354 | ||||
Noncontrolling interest in subsidiaries | 4,972 | - | ||||
Total equity | 7,697,781 | 7,860,354 | ||||
Total liabilities and equity | $ | 17,915,876 | $ | 19,817,809 | ||
WASTE CONNECTIONS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS TWELVE MONTHS ENDED DECEMBER 31, 2023 AND 2024 (Unaudited) (in thousands of | ||||||
Twelve months ended December 31, | ||||||
2023 | 2024 | |||||
Cash flows from operating activities: | ||||||
Net income | $ | 762,826 | $ | 616,570 | ||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||
Loss from disposal of assets, impairments and other | 38,877 | 122,641 | ||||
Adjustment to closure and post-closure liabilities | 159,547 | 480,786 | ||||
Depreciation | 845,638 | 974,001 | ||||
Amortization of intangibles | 157,573 | 189,768 | ||||
Deferred income taxes, net of acquisitions | 6,329 | (57,285) | ||||
Current period provision for expected credit losses | 17,430 | 20,243 | ||||
Amortization of debt issuance costs | 6,483 | 10,007 | ||||
Share-based compensation | 70,436 | 77,885 | ||||
Interest accretion | 22,720 | 36,001 | ||||
Payment of contingent consideration recorded in earnings | - | (35,035) | ||||
Adjustments to contingent consideration | 30,367 | (3) | ||||
Other | (3,943) | 2,656 | ||||
Net change in operating assets and liabilities, net of acquisitions | 12,534 | (209,308) | ||||
Net cash provided by operating activities | 2,126,817 | 2,228,927 | ||||
Cash flows from investing activities: | ||||||
Payments for acquisitions, net of cash acquired | (676,793) | (2,120,878) | ||||
Capital expenditures for property and equipment | (934,000) | (1,055,988) | ||||
Proceeds from disposal of assets | 31,581 | 7,903 | ||||
Proceeds from sale of investment in noncontrolling interests | - | 37,000 | ||||
Other | (1,867) | (27,213) | ||||
Net cash used in investing activities | (1,581,079) | (3,159,176) | ||||
Cash flows from financing activities: | ||||||
Proceeds from long-term debt | 1,818,765 | 4,564,469 | ||||
Principal payments on notes payable and long-term debt | (2,052,153) | (3,245,419) | ||||
Payment of contingent consideration recorded at acquisition date | (13,317) | (27,743) | ||||
Change in book overdraft | (790) | (227) | ||||
Payments for repurchase of common shares | - | - | ||||
Payments for cash dividends | (270,604) | (302,258) | ||||
Tax withholdings related to net share settlements of equity-based compensation | (31,009) | (32,928) | ||||
Debt issuance costs | - | (13,449) | ||||
Proceeds from issuance of shares under employee share purchase plan | 3,909 | 4,486 | ||||
Proceeds from sale of common shares held in trust | 794 | 2,014 | ||||
Other | - | (4,000) | ||||
Net cash provided by (used in) financing activities | (544,405) | 944,945 | ||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 1,341 | (561) | ||||
Net increase in cash, cash equivalents and restricted cash | 2,674 | 14,135 | ||||
Cash, cash equivalents and restricted cash at beginning of year | 181,364 | 184,038 | ||||
Cash, cash equivalents and restricted cash at end of year | $ | 184,038 | $ | 198,173 | ||
ADDITIONAL STATISTICS
(in thousands of
Solid Waste Internal Growth: The following table reflects a breakdown of the components of our solid waste internal growth for the three and twelve month periods ended December 31, 2024:
Three months ended December 31, 2024 | Twelve months ended December 31, 2024 | |||||
Core Price | 6.7 % | 7.1 % | ||||
Surcharges | (0.5 %) | (0.5 %) | ||||
Volume | (3.2 %) | (2.9 %) | ||||
Recycling | 0.2 % | 0.7 % | ||||
Foreign Exchange Impact | (0.3 %) | (0.2 %) | ||||
Total | 2.9 % | 4.2 % | ||||
Revenue Breakdown: The following table reflects a breakdown of our revenue for the three month periods ended December 31, 2023 and 2024:
Three months ended December 31, 2023 | ||||||||||||
Revenue | Inter-company | Reported | % | |||||||||
Solid Waste Collection | $ | 1,501,882 | $ | (4,220) | $ | 1,497,662 | 73.6 | % | ||||
Solid Waste Disposal and Transfer | 672,318 | (279,231) | 393,087 | 19.3 | % | |||||||
Solid Waste Recycling | 41,316 | (1,462) | 39,854 | 2.0 | % | |||||||
E&P Waste Treatment, Recovery and Disposal | 59,780 | (3,677) | 56,103 | 2.7 | % | |||||||
Intermodal and Other | 49,066 | (163) | 48,903 | 2.4 | % | |||||||
Total | $ | 2,324,362 | $ | (288,753) | $ | 2,035,609 | 100.0 | % | ||||
Three months ended December 31, 2024 | ||||||||||||
Revenue | Inter-company | Reported | % | |||||||||
Solid Waste Collection | $ | 1,612,307 | $ | (4,513) | $ | 1,607,794 | 71.1 | % | ||||
Solid Waste Disposal and Transfer | 718,525 | (309,508) | 409,017 | 18.1 | % | |||||||
Solid Waste Recycling | 59,802 | (2,102) | 57,700 | 2.6 | % | |||||||
E&P Waste Treatment, Recovery and Disposal | 146,328 | (6,074) | 140,254 | 6.2 | % | |||||||
Intermodal and Other | 45,908 | (390) | 45,518 | 2.0 | % | |||||||
Total | $ | 2,582,870 | $ | (322,587) | $ | 2,260,283 | 100.0 | % | ||||
Contribution from Acquisitions: The following table reflects revenues from acquisitions, net of divestitures, for the three and twelve month periods ended December 31, 2023 and 2024:
Three months ended | Twelve months ended | |||||||||||||
2023 | 2024 | 2023 | 2024 | |||||||||||
Acquisitions, net | $ | 51,011 | $ | 169,467 | $ | 407,313 | $ | 529,183 | ||||||
ADDITIONAL STATISTICS (continued)
(in thousands of
Other Cash Flow Items: The following table reflects cash interest and cash taxes for the three and twelve month periods ended December 31, 2023 and 2024:
Three months ended | Twelve months ended | |||||||||||
2023 | 2024 | 2023 | 2024 | |||||||||
Cash Interest Paid | $ | 69,868 | $ | 75,738 | $ | 260,923 | $ | 298,934 | ||||
Cash Taxes Paid | 81,470 | 51,382 | 207,020 | 215,997 | ||||||||
Debt to Book Capitalization as of December 31, 2024:
Internalization for the three months ended December 31, 2024:
Days Sales Outstanding for the three months ended December 31, 2024: 38 (22 net of deferred revenue)
Share Information for the three months ended December 31, 2024:
Basic shares outstanding | 258,043,117 | |
Dilutive effect of equity-based awards | 799,634 | |
Diluted shares outstanding | 258,842,751 |
NON-GAAP RECONCILIATION SCHEDULE
(in thousands of
Reconciliation of Adjusted EBITDA:
Adjusted EBITDA, a non-GAAP financial measure, is provided supplementally because it is widely used by investors as a performance and valuation measure in the solid waste industry. Management uses adjusted EBITDA as one of the principal measures to evaluate and monitor the ongoing financial performance of Waste Connections' operations. Waste Connections defines adjusted EBITDA as net income attributable to Waste Connections, plus or minus net income (loss) attributable to noncontrolling interests, plus income tax provision, plus interest expense, less interest income, plus depreciation and amortization expense, plus closure and post-closure accretion expense, plus or minus any loss or gain on impairments and other operating items, plus other expense, less other income. Waste Connections further adjusts this calculation to exclude the effects of other items management believes impact the ability to assess the operating performance of its business. This measure is not a substitute for, and should be used in conjunction with, GAAP financial measures. Other companies may calculate adjusted EBITDA differently.
Three months ended | Twelve months ended | |||||||||||
2023 | 2024 | 2023 | 2024 | |||||||||
Net income (loss) attributable to Waste Connections | $ | 126,753 | $ | (196,004) | $ | 762,800 | $ | 617,573 | ||||
Plus/(Less): Net income (loss) attributable to noncontrolling interests | (124) | - | 26 | (1,003) | ||||||||
Plus/(Less): Income tax provision (benefit) | 34,760 | (85,645) | 220,675 | 146,363 | ||||||||
Plus: Interest expense | 69,728 | 82,419 | 274,642 | 326,804 | ||||||||
Less: Interest income | (2,464) | (2,215) | (9,350) | (11,607) | ||||||||
Plus: Depreciation and amortization | 253,124 | 321,793 | 1,003,211 | 1,163,769 | ||||||||
Plus: Closure and post-closure accretion | 5,909 | 6,896 | 19,605 | 29,774 | ||||||||
Plus: Impairments and other operating items | 169,595 | 601,570 | 238,796 | 613,012 | ||||||||
Plus/(Less): Other expense (income), net | (4,135) | 2,256 | (12,481) | (10,471) | ||||||||
Adjustments: | ||||||||||||
Plus: Transaction-related expenses(a) | 3,639 | 890 | 10,653 | 26,059 | ||||||||
Plus/(Less): Fair value changes to equity awards(b) | (1,791) | (11) | (1,726) | 1,592 | ||||||||
Plus: Executive separation costs(c) | 1,042 | - | 16,105 | - | ||||||||
Adjusted EBITDA | $ | 656,036 | $ | 731,949 | $ | 2,522,956 | $ | 2,901,865 | ||||
As % of revenues | 32.2 % | 32.4 % | 31.5 % | 32.5 % | ||||||||
____________________________ | |
(a) | Reflects the addback of acquisition-related transaction costs. |
(b) | Reflects fair value accounting changes associated with certain equity awards. |
(c) | Reflects the cash and non-cash components of severance expense associated with an executive departure. |
NON-GAAP RECONCILIATION SCHEDULE (continued)
(in thousands of
Reconciliation of Adjusted Free Cash Flow:
Adjusted free cash flow, a non-GAAP financial measure, is provided supplementally because it is widely used by investors as a liquidity measure in the solid waste industry. Waste Connections calculates adjusted free cash flow as net cash provided by operating activities, plus or minus change in book overdraft, plus proceeds from disposal of assets, less capital expenditures for property and equipment. Waste Connections further adjusts this calculation to exclude the effects of items management believes impact the ability to evaluate the liquidity of its business operations. This measure is not a substitute for, and should be used in conjunction with, GAAP liquidity or financial measures. Other companies may calculate adjusted free cash flow differently.
Twelve months ended | |||||||
2023 | 2024 | ||||||
Net cash provided by operating activities | $ | 2,126,817 | $ | 2,228,927 | |||
Less: Change in book overdraft | (790) | (227) | |||||
Plus: Proceeds from disposal of assets | 31,581 | 7,903 | |||||
Less: Capital expenditures for property and equipment | (934,000) | (1,055,988) | |||||
Adjustments: | |||||||
Payment of contingent consideration recorded in earnings(a) | - | 35,035 | |||||
Cash received for divestitures(b) | (6,194) | - | |||||
Transaction-related expenses(c) | 5,519 | 11,408 | |||||
Executive separation costs (d) | 1,686 | 1,670 | |||||
Pre-existing Progressive Waste share-based grants(e) | 1,285 | 1,194 | |||||
Tax effect(f) | (1,772) | (12,396) | |||||
Adjusted free cash flow | $ | 1,224,132 | $ | 1,217,526 | |||
As % of revenues | 15.3 % | 13.7 % | |||||
___________________________ | |
(a) | Reflects the addback of acquisition-related payments for contingent consideration that were recorded as expenses in earnings and as a component of cash flows from operating activities as the amounts paid exceeded the fair value of the contingent consideration recorded at the acquisition date. |
(b) | Reflects the elimination of cash received in conjunction with the divestiture of certain operations. |
(c) | Reflects the addback of acquisition-related transaction costs. |
(d) | Reflects the cash component of severance expense associated with an executive departure. |
(e) | Reflects the cash settlement of pre-existing Progressive Waste share-based awards during the period. |
(f) | The aggregate tax effect of footnotes (a) through (e) is calculated based on the applied tax rates for the respective periods. |
NON-GAAP RECONCILIATION SCHEDULE (continued)
(in thousands of
Reconciliation of Adjusted Net Income attributable to Waste Connections and Adjusted Net Income per Diluted Share attributable to Waste Connections:
Adjusted net income attributable to Waste Connections and adjusted net income per diluted share attributable to Waste Connections, both non-GAAP financial measures, are provided supplementally because they are widely used by investors as a valuation measure in the solid waste industry. Management uses adjusted net income attributable to Waste Connections and adjusted net income per diluted share attributable to Waste Connections as one of the principal measures to evaluate and monitor the ongoing financial performance of Waste Connections' operations. Waste Connections provides adjusted net income attributable to Waste Connections to exclude the effects of items management believes impact the comparability of operating results between periods. Adjusted net income attributable to Waste Connections has limitations due to the fact that it excludes items that have an impact on the Company's financial condition and results of operations. Adjusted net income attributable to Waste Connections and adjusted net income per diluted share attributable to Waste Connections are not a substitute for, and should be used in conjunction with, GAAP financial measures. Other companies may calculate these non-GAAP financial measures differently.
Three months ended | Twelve months ended | |||||||||||
2023 | 2024 | 2023 | 2024 | |||||||||
Reported net income (loss) attributable to Waste Connections | $ | 126,753 | $ | (196,004) | $ | 762,800 | $ | 617,573 | ||||
Adjustments: | ||||||||||||
Amortization of intangibles(a) | 39,833 | 60,184 | 157,573 | 189,768 | ||||||||
Impairments and other operating items(b) | 169,595 | 601,570 | 238,796 | 613,012 | ||||||||
Transaction-related expenses(c) | 3,639 | 890 | 10,653 | 26,059 | ||||||||
Fair value changes to equity awards(d) | (1,791) | (11) | (1,726) | 1,592 | ||||||||
Executive separation costs(e) | 1,042 | - | 16,105 | - | ||||||||
Tax effect(f) | (53,592) | (166,051) | (102,948) | (208,711) | ||||||||
Adjusted net income attributable to Waste Connections | $ | 285,479 | $ | 300,578 | $ | 1,081,253 | $ | 1,239,293 | ||||
Diluted earnings per common share attributable to Waste Connections' common shareholders: | ||||||||||||
Reported net income (loss) | $ | 0.49 | $ | (0.76) | $ | 2.95 | $ | 2.39 | ||||
Adjusted net income | $ | 1.11 | $ | 1.16 | $ | 4.19 | $ | 4.79 | ||||
Shares used in the per share calculations: | ||||||||||||
Reported diluted shares | 258,303,370 | 258,043,117 | 258,149,244 | 258,662,190 | ||||||||
Adjusted diluted shares(g) | 258,303,370 | 258,842,751 | 258,149,244 | 258,662,190 | ||||||||
____________________________ | |
(a) | Reflects the elimination of the non-cash amortization of acquisition-related intangible assets. |
(b) | Reflects the addback of impairments and other operating items. |
(c) | Reflects the addback of acquisition-related transaction costs. |
(d) | Reflects fair value accounting changes associated with certain equity awards. |
(e) | Reflects the cash and non-cash components of severance expense associated with an executive departure. |
(f) (g) | The aggregate tax effect of the adjustments in footnotes (a) through (e) is calculated based on the applied tax rates for the respective periods. Reflects reported diluted shares adjusted for shares that were excluded from the reported diluted shares calculation due to reporting a net loss during the three months ended December 31, 2024.
|
2025 OUTLOOK NON-GAAP RECONCILIATION SCHEDULE (in thousands of | ||||||||
Reconciliation of Adjusted EBITDA: | ||||||||
2025 Outlook | ||||||||
Low | High | Observation | ||||||
Net income attributable to Waste Connections | $ | 1,186,000 | $ | 1,224,000 | ||||
Plus: Income tax provision | 374,000 | 386,000 | Approximate | |||||
Plus: Interest expense, net | 290,000 | 310,000 | ||||||
Plus: Depreciation and Depletion | 1,040,000 | 1,045,000 | Approximately | |||||
Plus: Amortization | 185,000 | 190,000 | Approximately | |||||
Plus: Closure and post-closure accretion | 45,000 | 45,000 | ||||||
Adjusted EBITDA | $ | 3,120,000 | $ | 3,200,000 | Approximately | |||
Reconciliation of Adjusted Free Cash Flow: | |||||
2025 Outlook | |||||
Low | High | ||||
Net cash provided by operating activities | $ | 2,500,000 | $ | 2,575,000 | |
Less: Capital expenditures | (1,200,000) | (1,225,000) | |||
Adjusted Free Cash Flow | $ | 1,300,000 | $ | 1,350,000 | |
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SOURCE Waste Connections, Inc.
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