WASTE CONNECTIONS REPORTS SECOND QUARTER 2023 RESULTS AND RAISES FULL YEAR MARGIN OUTLOOK
- Waste Connections reports Q2 revenue increase of 11.3% YoY. Adjusted EBITDA margin exceeds outlook. Year to date net cash provided by operating activities of $1.017 billion. Updated 2023 outlook projects net income of $931 million and adjusted EBITDA of $2.525 billion.
- None.
- Top-to-bottom beat led by solid execution in Q2 sets up increases to full year 2023 outlook
- Revenue of
, above outlook and up$2.02 1 billion11.3% year over year - Net income(a) of
, and adjusted EBITDA(b) of$209.2 million , above outlook$628.9 million - Adjusted EBITDA(b) margin of
31.1% of revenue, 30bps above outlook - Net income of
per share, and adjusted net income(b) of$0.81 per share$1.02 - Year to date net cash provided by operating activities of
and adjusted free cash flow(b) of$1.01 7 billion , or$630.0 million 16.1% of revenue - Year to date closed acquisitions with over
of total annualized revenue, including Arrowhead Environmental Holdings, LLC ("Arrowhead"), the largest integrated waste-to-rail disposal network in the$160 million Northeast U.S. - Updates full year 2023 outlook to net income of approximately
, increasing adjusted EBITDA(b) to approximately$931 million or$2.52 5 billion31.5% on revenue of approximately$8.02 5 billion
"We are extremely pleased by the strength of operational execution during the quarter for a solid beat on revenue and adjusted EBITDA(b) to deliver margins 30 basis points above our outlook. Solid waste core pricing growth of
"Our performance in the first half of 2023, along with recent acquisitions and reduced headwinds from fuel and other commodity-related impacts, positions us to increase our full year outlook for adjusted EBITDA(b) to approximately
Mr. Mittelstaedt added, "The strength of our results reflects our focus on quality of revenue through the shedding of low margin volumes and furthered by strategic acquisitions, including Arrowhead, a
Q2 2023 Results
Revenue in the second quarter totaled
Adjusted net income(b) in the second quarter was
Six Months Year to Date Results
For the six months ended June 30, 2023, revenue was
Net income for the six months ended June 30, 2023 was
Adjusted net income(b) for the six months ended June 30, 2023 was
Updated 2023 Outlook
Waste Connections also updated its outlook for 2023, which assumes no change in the current economic environment or underlying economic trends. The Company's outlook excludes any impact from additional acquisitions that may close during the year, and 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 to be approximately
, down$8.02 5 billion from our original outlook to reflect a reduction in fuel and material surcharges of$25 million as a result of lower fuel costs.$35 million - Net income is estimated to be approximately
, and adjusted EBITDA(b) is estimated to be approximately$931.0 million , or about$2.52 5 billion31.5% of revenue, as compared to our original outlook for adjusted EBITDA(b) of or$2.50 0 billion31.1% of revenue. - Capital expenditures are estimated to be approximately
, up$950 million from our original outlook.$25 million - Net cash provided by operating activities is estimated to be approximately
, and adjusted free cash flow(b) is estimated to be approximately$2.14 1 billion , or about$1.22 5 billion15.3% of revenue.
Environmental, Social and Governance
Waste Connections views its Environmental, Social and Governance ("ESG") efforts as integral to its business, with initiatives consistent with its objective of long-term value creation. In 2020, the Company introduced long-term, aspirational ESG targets and committed
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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 |
Q3 2023 Earnings Conference Call
Waste Connections will be hosting a conference call related to second quarter earnings on August 3rd 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 August 10, 2023, 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 August 3rd, providing the Company's third quarter 2023 outlook for revenue, price plus volume growth for solid waste, and adjusted EBITDA(b).
About Waste Connections
Waste Connections 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 more than eight million residential, commercial and industrial customers in mostly exclusive and secondary markets across 44 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 SIX months ended JUNE 30, 2022 and 2023 (Unaudited) (in thousands of | |||||||||||||
Three months ended | Six months ended | ||||||||||||
2022 | 2023 | 2022 | 2023 | ||||||||||
Revenues | $ | 1,816,435 | $ | 2,021,095 | $ | 3,462,690 | $ | 3,921,598 | |||||
Operating expenses: | |||||||||||||
Cost of operations | 1,087,892 | 1,197,349 | 2,077,410 | 2,344,290 | |||||||||
Selling, general and administrative | 168,404 | 216,385 | 331,818 | 410,052 | |||||||||
Depreciation | 188,937 | 213,322 | 368,887 | 417,380 | |||||||||
Amortization of intangibles | 37,462 | 39,052 | 75,098 | 78,335 | |||||||||
Impairments and other operating items | 4,150 | 10,859 | 6,028 | 12,724 | |||||||||
Operating income | 329,590 | 344,128 | 603,449 | 658,817 | |||||||||
Interest expense | (45,079) | (67,545) | (86,404) | (135,898) | |||||||||
Interest income | 652 | 1,338 | 790 | 4,053 | |||||||||
Other income (expense), net | (2,649) | (200) | (6,114) | 2,974 | |||||||||
Income before income tax provision | 282,514 | 277,721 | 511,721 | 529,946 | |||||||||
Income tax provision | (58,307) | (68,551) | (107,146) | (122,940) | |||||||||
Net income | 224,207 | 209,170 | 404,575 | 407,006 | |||||||||
Plus/(Less): Net loss (income) attributable to noncontrolling interests | (133) | 38 | (177) | 15 | |||||||||
Net income attributable to Waste Connections | $ | 224,074 | $ | 209,208 | $ | 404,398 | $ | 407,021 | |||||
Earnings per common share attributable to Waste Connections' common shareholders: | |||||||||||||
Basic | $ | 0.87 | $ | 0.81 | $ | 1.57 | $ | 1.58 | |||||
Diluted | $ | 0.87 | $ | 0.81 | $ | 1.57 | $ | 1.58 | |||||
Shares used in the per share calculations: | |||||||||||||
Basic | 257,179,434 | 257,596,993 | 257,555,033 | 257,485,587 | |||||||||
Diluted | 257,736,745 | 258,110,491 | 258,140,714 | 258,050,350 | |||||||||
Cash dividends per common share | $ | 0.23 | $ | 0.255 | $ | 0.46 | $ | 0.51 |
Waste Connections, Inc. Condensed Consolidated Balance Sheets (Unaudited) (in thousands of | |||||||
December 31, | June 30, | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and equivalents | $ | 78,637 | $ | 91,712 | |||
Accounts receivable, net of allowance for credit losses of | 833,862 | 855,479 | |||||
Prepaid expenses and other current assets | 205,146 | 164,485 | |||||
Total current assets | 1,117,645 | 1,111,676 | |||||
Restricted cash | 102,727 | 112,623 | |||||
Restricted investments | 68,099 | 73,075 | |||||
Property and equipment, net | 6,950,915 | 7,030,118 | |||||
Operating lease right-of-use assets | 192,506 | 248,967 | |||||
Goodwill | 6,902,297 | 6,992,466 | |||||
Intangible assets, net | 1,673,917 | 1,659,645 | |||||
Other assets, net | 126,497 | 130,957 | |||||
Total assets | $ | 17,134,603 | $ | 17,359,527 | |||
LIABILITIES AND EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 638,728 | $ | 539,216 | |||
Book overdraft | 15,645 | 15,411 | |||||
Deferred revenue | 325,002 | 341,408 | |||||
Accrued liabilities | 431,247 | 452,949 | |||||
Current portion of operating lease liabilities | 35,170 | 32,747 | |||||
Current portion of contingent consideration | 60,092 | 71,065 | |||||
Current portion of long-term debt and notes payable | 6,759 | 10,699 | |||||
Total current liabilities | 1,512,643 | 1,463,495 | |||||
Long-term portion of debt and notes payable | 6,890,149 | 6,681,384 | |||||
Long-term portion of operating lease liabilities | 165,462 | 224,566 | |||||
Long-term portion of contingent consideration | 21,323 | 21,344 | |||||
Deferred income taxes | 1,013,742 | 1,048,986 | |||||
Other long-term liabilities | 417,640 | 460,295 | |||||
Total liabilities | 10,020,959 | 9,900,070 | |||||
Commitments and contingencies | |||||||
Equity: | |||||||
Common shares: 257,211,175 shares issued and 257,145,716 shares outstanding at | 3,271,958 | 3,274,564 | |||||
Additional paid-in capital | 244,076 | 255,667 | |||||
Accumulated other comprehensive loss | (56,830) | (1,081) | |||||
Treasury shares: 65,459 and 59,656 shares at December 31, 2022 and June 30, 2023, | - | - | |||||
Retained earnings | 3,649,494 | 3,925,376 | |||||
Total Waste Connections' equity | 7,108,698 | 7,454,526 | |||||
Noncontrolling interest in subsidiaries | 4,946 | 4,931 | |||||
Total equity | 7,113,644 | 7,459,457 | |||||
Total liabilities and equity | $ | 17,134,603 | $ | 17,359,527 |
Waste Connections, Inc. Condensed Consolidated Statements of Cash Flows SIX months ended JUNE 30, 2022 and 2023 (Unaudited) (in thousands of | |||||||
Six months ended June 30, | |||||||
2022 | 2023 | ||||||
Cash flows from operating activities: | |||||||
Net income | $ | 404,575 | $ | 407,006 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Loss on disposal of assets and impairments | 6,048 | 12,558 | |||||
Depreciation | 368,887 | 417,380 | |||||
Amortization of intangibles | 75,098 | 78,335 | |||||
Deferred income taxes, net of acquisitions | 84,991 | 31,427 | |||||
Current period provision for expected credit losses | 6,907 | 7,035 | |||||
Amortization of debt issuance costs | 2,484 | 3,241 | |||||
Share-based compensation | 27,716 | 41,469 | |||||
Interest accretion | 8,798 | 9,835 | |||||
Adjustments to contingent consideration | (1,030) | (910) | |||||
Other | (2,173) | (2,828) | |||||
Net change in operating assets and liabilities, net of acquisitions | (8,623) | 12,164 | |||||
Net cash provided by operating activities | 973,678 | 1,016,712 | |||||
Cash flows from investing activities: | |||||||
Payments for acquisitions, net of cash acquired | (546,982) | (213,152) | |||||
Capital expenditures for property and equipment | (371,428) | (394,143) | |||||
Proceeds from disposal of assets | 16,894 | 3,819 | |||||
Other | 9,566 | (1,145) | |||||
Net cash used in investing activities | (891,950) | (604,621) | |||||
Cash flows from financing activities: | |||||||
Proceeds from long-term debt | 1,517,732 | 538,421 | |||||
Principal payments on notes payable and long-term debt | (920,107) | (768,059) | |||||
Payment of contingent consideration recorded at acquisition date | (8,898) | (2,193) | |||||
Change in book overdraft | (54) | (234) | |||||
Payments for repurchase of common shares | (424,999) | - | |||||
Payments for cash dividends | (118,812) | (131,140) | |||||
Tax withholdings related to net share settlements of equity-based compensation | (17,266) | (28,675) | |||||
Debt issuance costs | (4,668) | - | |||||
Proceeds from issuance of shares under employee share purchase plan | 1,554 | 1,841 | |||||
Proceeds from sale of common shares held in trust | 660 | 765 | |||||
Net cash provided by (used in) financing activities | 25,142 | (389,274) | |||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (1,941) | 154 | |||||
Net increase in cash, cash equivalents and restricted cash | 104,929 | 22,971 | |||||
Cash, cash equivalents and restricted cash at beginning of period | 219,615 | 181,364 | |||||
Cash, cash equivalents and restricted cash at end of period | $ | 324,544 | $ | 204,335 |
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 six month periods ended June 30, 2023:
Three months ended June 30, 2023 | Six months ended June 30, 2023 | ||||||
Core Price | 9.8 % | 10.3 % | |||||
Surcharges | (0.7 %) | 0.00 % | |||||
Volume | (1.9 %) | (1.6 %) | |||||
Recycling | (1.5 %) | (1.7 %) | |||||
Foreign Exchange Impact | (0.7 %) | (0.8 %) | |||||
Total | 5.0 % | 6.2 % |
Revenue Breakdown: The following table reflects a breakdown of our revenue for the three month periods ended June 30, 2022 and 2023:
Three months ended June 30, 2022 | |||||||||||||||||||||||||
Revenue | Inter-company | Reported | % | ||||||||||||||||||||||
Solid Waste Collection | $ | 1,297,402 | $ | (3,391) | $ | 1,294,011 | 71.2 | % | |||||||||||||||||
Solid Waste Disposal and Transfer | 601,194 | (238,162) | 363,032 | 20.0 | % | ||||||||||||||||||||
Solid Waste Recycling | 67,504 | (2,823) | 64,681 | 3.6 | % | ||||||||||||||||||||
E&P Waste Treatment, Recovery and Disposal | 54,155 | (3,712) | 50,443 | 2.8 | % | ||||||||||||||||||||
Intermodal and Other | 46,310 | (2,042) | 44,268 | 2.4 | % | ||||||||||||||||||||
Total | $ | 2,066,565 | $ | (250,130) | $ | 1,816,435 | 100.0 | % |
Three months ended June 30, 2023 | |||||||||||||||
Revenue | Inter-company | Reported | % | ||||||||||||
Solid Waste Collection | $ | 1,485,705 | $ | (4,334) | $ | 1,481,371 | 73.3 | % | |||||||
Solid Waste Disposal and Transfer | 688,965 | (281,280) | 407,685 | 20.2 | % | ||||||||||
Solid Waste Recycling | 38,319 | (991) | 37,328 | 1.9 | % | ||||||||||
E&P Waste Treatment, Recovery and Disposal | 58,607 | (3,194) | 55,413 | 2.7 | % | ||||||||||
Intermodal and Other | 39,459 | (161) | 39,298 | 1.9 | % | ||||||||||
Total | $ | 2,311,055 | $ | (289,960) | $ | 2,021,095 | 100.0 | % |
Contribution from Acquisitions: The following table reflects revenues from acquisitions, net of divestitures, for the three and six month periods ended June 30, 2022 and 2023:
Three months ended | Six months ended | |||||||||||
2022 | 2023 | 2022 | 2023 | |||||||||
Acquisitions, net | $ | 141,356 | $ | 121,285 | $ | 251,363 | $ | 253,394 |
ADDITIONAL STATISTICS (continued)
(in thousands of
Other Cash Flow Items: The following table reflects cash interest and cash taxes for the three and six month periods ended June 30, 2022 and 2023:
Three months ended | Six months ended | |||||||||||
2022 | 2023 | 2022 | 2023 | |||||||||
Cash Interest Paid | $ | 43,853 | $ | 62,361 | $ | 76,013 | $ | 117,492 | ||||
Cash Taxes Paid | 20,423 | 39,713 | 37,812 | 51,040 |
Debt to Book Capitalization as of June 30, 2023:
Internalization for the three months ended June 30, 2023:
Days Sales Outstanding for the three months ended June 30, 2023: 39 (23 net of deferred revenue)
Share Information for the three months ended June 30, 2023:
Basic shares outstanding | 257,596,993 | |
Dilutive effect of equity-based awards | 513,498 | |
Diluted shares outstanding | 258,110,491 |
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 | Six months ended | |||||||||||
2022 | 2023 | 2022 | 2023 | |||||||||
Net income attributable to Waste Connections | $ | 224,074 | $ | 209,208 | $ | 404,398 | $ | 407,021 | ||||
Plus/(Less): Net income (loss) attributable to noncontrolling interests | 133 | (38) | 177 | (15) | ||||||||
Plus: Income tax provision | 58,307 | 68,551 | 107,146 | 122,940 | ||||||||
Plus: Interest expense | 45,079 | 67,545 | 86,404 | 135,898 | ||||||||
Less: Interest income | (652) | (1,338) | (790) | (4,053) | ||||||||
Plus: Depreciation and amortization | 226,399 | 252,374 | 443,985 | 495,715 | ||||||||
Plus: Closure and post-closure accretion | 3,992 | 4,567 | 8,087 | 9,087 | ||||||||
Plus: Impairments and other operating items | 4,150 | 10,859 | 6,028 | 12,724 | ||||||||
Plus/(Less): Other expense (income), net | 2,649 | 200 | 6,114 | (2,974) | ||||||||
Adjustments: | ||||||||||||
Plus: Transaction-related expenses(a) | 3,692 | 1,824 | 8,232 | 3,905 | ||||||||
Plus/(Less): Fair value changes to equity awards(b) | (1,009) | 72 | (847) | 445 | ||||||||
Plus: Executive separation costs(c) | - | 15,063 | - | 15,063 | ||||||||
Adjusted EBITDA | $ | 566,814 | $ | 628,887 | $ | 1,068,934 | $ | 1,195,756 | ||||
As % of revenues | 31.2 % | 31.1 % | 30.9 % | 30.5 % |
____________________________ |
(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 a recent 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 and periodic distributions to noncontrolling interests. 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.
Three months ended | Six months ended | |||||||||||
2022 | 2023 | 2022 | 2023 | |||||||||
Net cash provided by operating activities | $ | 532,781 | $ | 574,353 | $ | 973,678 | $ | 1,016,712 | ||||
Less: Change in book overdraft | (141) | (5,655) | (54) | (234) | ||||||||
Plus: Proceeds from disposal of assets | 1,881 | 2,559 | 16,894 | 3,819 | ||||||||
Less: Capital expenditures for property and equipment | (219,110) | (218,357) | (371,428) | (394,143) | ||||||||
Adjustments: | ||||||||||||
Cash received for divestitures(a) | - | - | (5,671) | - | ||||||||
Transaction-related expenses(b) | 3,692 | 1,015 | 27,096 | 2,264 | ||||||||
Executive separation costs(c) | - | 1,686 | - | 1,686 | ||||||||
Pre-existing Progressive Waste share-based grants(d) | (64) | 843 | 12 | 841 | ||||||||
Tax effect(e) | (1,056) | (471) | (2,165) | (990) | ||||||||
Adjusted free cash flow | $ | 317,983 | $ | 355,973 | $ | 638,362 | $ | 629,955 | ||||
As % of revenues | 17.5 % | 17.6 % | 18.4 % | 16.1 % |
___________________________ |
(a) Reflects the elimination of cash received in conjunction with the divestiture of certain operations. |
(b) Reflects the addback of acquisition-related transaction costs and the settlement of an acquired tax liability. |
(c) Reflects the cash component of severance expense associated with a recent executive departure. |
(d) Reflects the cash settlement of pre-existing Progressive Waste share-based awards during the period. |
(e) The aggregate tax effect of footnotes (a) through (d) 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 | Six months ended | |||||||||||
2022 | 2023 | 2022 | 2023 | |||||||||
Reported net income attributable to Waste Connections | $ | 224,074 | $ | 209,208 | $ | 404,398 | $ | 407,021 | ||||
Adjustments: | ||||||||||||
Amortization of intangibles(a) | 37,462 | 39,052 | 75,098 | 78,335 | ||||||||
Impairments and other operating items(b) | 4,150 | 10,859 | 6,028 | 12,724 | ||||||||
Transaction-related expenses(c) | 3,692 | 1,824 | 8,232 | 3,905 | ||||||||
Fair value changes to equity awards(d) | (1,009) | 72 | (847) | 445 | ||||||||
Executive separation costs(e) | - | 15,063 | - | 15,063 | ||||||||
Tax effect(f) | (11,224) | (13,746) | (22,316) | (24,770) | ||||||||
Adjusted net income attributable to Waste Connections | $ | 257,145 | $ | 262,332 | $ | 470,593 | $ | 492,723 | ||||
Diluted earnings per common share attributable to Waste Connections' common shareholders: | ||||||||||||
Reported net income | $ | 0.87 | $ | 0.81 | $ | 1.57 | $ | 1.58 | ||||
Adjusted net income | $ | 1.00 | $ | 1.02 | $ | 1.82 | $ | 1.91 | ||||
____________________________ |
(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 a recent executive departure. |
(f) The aggregate tax effect of the adjustments in footnotes (a) through (e) is calculated based on the applied tax rates for the respective periods. |
UPDATED 2023 OUTLOOK | ||||
Reconciliation of Adjusted EBITDA: | ||||
Updated 2023 Outlook | ||||
Estimates | Observation | |||
Net income attributable to Waste Connections | $ | 931,000 | ||
Plus: Net income attributable to noncontrolling interests | 200 | |||
Plus: Income tax provision (a) | 278,637 | Approximate | ||
Plus: Interest expense, net | 265,000 | |||
Plus: Depreciation and Depletion | 845,000 | Approximately | ||
Plus: Amortization | 158,000 | |||
Plus: Closure and post-closure accretion | 18,000 | |||
Plus: Impairments and other operating items (b) | 12,724 | |||
Minus: Other income, net (b) | (2,974) | |||
Adjustments: (b) | ||||
Plus: Transaction-related expenses | 3,905 | |||
Plus: Executive separation costs | 15,063 | |||
Plus: Fair value changes to equity awards | 445 | |||
Adjusted EBITDA | $ | 2,525,000 | Approximately | |
____________________________ |
(a) Approximately |
(b) Reflects amounts reported for the six month period ended June 30, 2023, as shown on page 9. |
Reconciliation of Adjusted Free Cash Flow: | |||
Updated 2023 Outlook | |||
Net cash provided by operating activities | $ | 2,141,433 | |
Less: Change in book overdraft (a) | (234) | ||
Plus: Proceeds from disposal of assets | 30,000 | ||
Less: Capital expenditures for property and equipment | (950,000) | ||
Adjustments: (a) | |||
Transaction-related expenses | 2,264 | ||
Executive separation costs | 1,686 | ||
Pre-existing Progressive Waste share-based grants | 841 | ||
Tax effect | (990) | ||
Adjusted free cash flow | $ | 1,225,000 | |
As % of revenues | 15.3 % | ||
____________________________ |
(a) Reflects amounts reported for the six month period ended June 30, 2023, as shown on page 10. |
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SOURCE Waste Connections, Inc.
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