- Revenue of $1.091 billion,
exceeding outlook
- Reports 4.7% solid waste price + volume growth
- Net income attributable to Waste Connections of $14.9 million, or $0.08 per share
- Adjusted net income attributable to Waste Connections* of
$130.3 million, or $0.74 per share, up 64.4% per share
- Adjusted EBITDA* of $332.8
million, or 30.5% of revenue, exceeding outlook
- Net cash provided by operating activities of $287.5 million
- Adjusted free cash flow* of $237.5
million, or 21.8% of revenue
- Proposes three-for-two stock split
TORONTO, April 26, 2017 /CNW/ -- Waste Connections,
Inc. (TSX/NYSE: WCN) ("Waste Connections" or the "Company") today
announced its results for the first quarter of 2017.
"2017 is off to a great start, with 15% same store landfill
tonnage increases, better than expected contribution from recent
acquisitions, increased E&P waste activity, and higher recycled
commodity prices all driving results above our outlook for the
first quarter. Adjusted EBITDA margin was 50 basis points
above our expectations, and most importantly, adjusted free cash
flow was $237.5 million, putting us
well on our way to our full year adjusted free cash flow outlook of
$725 million," said Ronald J. Mittelstaedt, Chairman and Chief
Executive Officer.
Mr. Mittelstaedt added, "We are extremely pleased with our first
quarter performance and encouraged by both continuing strong solid
waste fundamentals and the notable ramping of E&P waste
activity and related margins. In addition, we are proud of
our proposed three-for-two stock split also announced today, which,
if approved by our shareholders, will be the fourth such split in
our almost twenty year history."
Revenue in the first quarter, which included $490.3 million from the Progressive Waste
acquisition completed on June 1,
2016, totaled $1.091 billion,
up from $514.7 million in the year
ago period. Operating income, which included $141.7 million in non-cash impairments and other
charges, was $26.4 million compared
to $91.0 million in the first quarter
of 2016.
Net income attributable to Waste Connections in the first
quarter was $14.9 million, or
$0.08 per share on a diluted basis of
175.9 million shares. In the year ago period, the Company
reported net income attributable to Waste Connections of
$44.8 million, or $0.36 per share on a diluted basis of 123.5
million shares.
Adjusted net income attributable to Waste Connections* in the
first quarter was $130.3 million, or
$0.74 per share, versus $55.2 million, or $0.45 per share, in the prior year period.
Adjusted EBITDA* in the first quarter was $332.8 million, as compared to adjusted EBITDA*
of $169.7 million in the prior year
period. Adjusted net income attributable to Waste
Connections, adjusted net income attributable to Waste Connections
per diluted share and adjusted EBITDA, all non-GAAP measures,
primarily exclude the following two impairment charges:
$77.3 million against the Company's
E&P segment resulting from the early adoption of FASB's recent
accounting pronouncement simplifying the test for goodwill
impairment and $53.5 million related
to the expected divestiture of certain assets acquired in the
Progressive Waste acquisition, as reflected in the detailed
reconciliation in the attached tables.
* A non-GAAP measure; see accompanying Non-GAAP
Reconciliation Schedule.
CONFERENCE CALL
Waste Connections will be hosting a conference call related to
first quarter earnings on April
27th at 8:30 A.M. Eastern
Time. The call will be broadcast live over the
Internet through a link on the Company's website at
www.wasteconnections.com. A playback of the call will
be available on the Company's website.
About Waste Connections
Waste Connections is an
integrated solid waste services company that provides waste
collection, transfer, disposal and recycling services in mostly
exclusive and secondary markets in the
United States and Canada. Through its R360
Environmental Solutions subsidiary, Waste Connections is also a
leading provider of non-hazardous oilfield waste treatment,
recovery and disposal services in several of the most active
natural resource producing areas in the
United States, including the Permian, Bakken and Eagle Ford
Basins. Waste Connections serves more than six million
residential, commercial, industrial, and exploration and production
customers in 39 states in the U.S., and five provinces in
Canada. The Company also provides intermodal services for the
movement of cargo and solid waste containers in the Pacific
Northwest.
For more information, visit the Waste Connections web site at
www.wasteconnections.com. Copies of financial literature,
including this release, are available on the Waste Connections
website or through contacting us directly at (905) 532-7510.
Investors can also obtain these materials and other documents filed
with the U.S. Securities and Exchange Commission (SEC) and the
Canadian securities regulators free of charge at the SEC's website,
www.sec.gov, and at the System for Electronic Document Analysis and
Retrieval (SEDAR) maintained by the Canadian Securities
Administrators at www.sedar.com.
Safe Harbor and Forward-Looking
Information
This press release contains
forward-looking statements within the meaning of the safe harbor
provisions of the U.S. Private Securities Litigation Reform Act of
1995 (PSLRA) and "forward-looking information" within the meaning
of applicable Canadian securities laws. These forward-looking
statements are neither historical facts nor assurances of future
performance and reflect Waste Connections' current beliefs
and expectations regarding future events and operating
performance. These forward-looking statements are often
identified by the words "may," "might," "believes," "thinks,"
"expects," "intends" or other words of similar meaning. All of the
forward-looking statements included in this press release are made
pursuant to the safe harbor provisions of the PSLRA and applicable
securities laws in Canada.
Forward-looking statements involve risks and uncertainties.
Forward-looking statements in this press release include, but are
not limited to, our ability to obtain the required shareholder and
regulatory approvals to complete the share split, statements about
expected 2017 financial results, adjusted free cash flow, outlook
and related assumptions, and potential operating trends. Important
factors that could cause actual results to differ, possibly
materially, from those indicated by the forward-looking statements
include, but are not limited to, risk factors detailed from time to
time in filings that have been made by the Company with the U.S.
Securities and Exchange Commission and the securities commissions
or similar regulatory authorities in Canada. You should not
place undue reliance on forward-looking statements, which speak
only as of the date of this press release. Waste Connections
undertakes no obligation to update the forward-looking statements
set forth in this press release, whether as a result of new
information, future events, or otherwise, unless required by
applicable securities laws.
– financial tables attached –
CONTACT:
|
|
Worthing Jackman /
(832) 442-2266
|
Mary Anne Whitney /
(832) 442-2253
|
worthingj@wasteconnections.com
|
maryannew@wasteconnections.com
|
WASTE CONNECTIONS,
INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF NET INCOME
|
THREE MONTHS ENDED
MARCH 31, 2016 AND 2017
|
(Unaudited)
|
(in thousands of U.S.
dollars, except share and per share amounts)
|
|
|
|
Three months
ended March 31,
|
|
|
2016
|
|
|
2017
|
|
Revenues
|
$
|
514,680
|
|
|
$
|
1,091,266
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Cost of
operations
|
|
287,192
|
|
|
|
643,380
|
|
Selling, general and
administrative
|
|
67,682
|
|
|
|
129,051
|
|
Depreciation
|
|
60,897
|
|
|
|
125,240
|
|
Amortization of
intangibles
|
|
7,694
|
|
|
|
25,510
|
|
Impairments and other
operating items
|
|
236
|
|
|
|
141,681
|
|
Operating
income
|
|
90,979
|
|
|
|
26,404
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
(17,184)
|
|
|
|
(29,131)
|
|
Other income,
net
|
|
222
|
|
|
|
1,466
|
|
Foreign currency
transaction loss
|
|
-
|
|
|
|
(590)
|
|
Income (loss) before
income tax provision
|
|
74,017
|
|
|
|
(1,851)
|
|
|
|
|
|
|
|
|
|
Income tax
(provision) benefit
|
|
(29,000)
|
|
|
|
16,871
|
|
Net income
|
|
45,017
|
|
|
|
15,020
|
|
Less: Net income
attributable to noncontrolling interests
|
|
(175)
|
|
|
|
(146)
|
|
Net income
attributable to Waste Connections
|
$
|
44,842
|
|
|
$
|
14,874
|
|
|
|
|
|
|
|
|
|
Earnings per common
share attributable to Waste Connections'
common
shareholders:
|
|
|
|
|
|
|
|
Basic
|
$
|
0.37
|
|
|
$
|
0.08
|
|
|
|
|
|
|
|
|
|
Diluted
|
$
|
0.36
|
|
|
$
|
0.08
|
|
|
|
|
|
|
|
|
|
Shares used in the
per share calculations:
|
|
|
|
|
|
|
|
Basic
|
|
122,778,290
|
|
|
|
175,374,630
|
|
Diluted
|
|
123,450,584
|
|
|
|
175,935,482
|
|
|
|
|
|
|
|
|
|
Cash dividends per
common share
|
$
|
0.145
|
|
|
$
|
0.18
|
|
|
|
|
|
|
|
|
|
|
WASTE CONNECTIONS,
INC.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(Unaudited)
|
(in thousands of U.S.
dollars, except share and per share amounts)
|
|
|
|
|
December 31,
2016
|
|
March
31, 2017
|
ASSETS
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and
equivalents
|
|
$
|
154,382
|
|
$
|
268,469
|
Accounts receivable,
net of allowance for doubtful accounts of $13,160 and $12,007 at
December 31, 2016 and March 31, 2017, respectively
|
|
|
485,138
|
|
|
486,413
|
Current assets held
for sale
|
|
|
6,339
|
|
|
14,585
|
Prepaid expenses and
other current assets
|
|
|
97,533
|
|
|
107,876
|
Total current
assets
|
|
|
743,392
|
|
|
877,343
|
|
|
|
|
|
|
|
Property and
equipment, net
|
|
|
4,738,055
|
|
|
4,721,669
|
Goodwill
|
|
|
4,390,261
|
|
|
4,529,645
|
Intangible assets,
net
|
|
|
1,067,158
|
|
|
1,097,962
|
Restricted
assets
|
|
|
63,406
|
|
|
59,193
|
Long-term assets held
for sale
|
|
|
33,989
|
|
|
119,002
|
Other assets,
net
|
|
|
67,664
|
|
|
64,618
|
|
|
$
|
11,103,925
|
|
$
|
11,469,432
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
251,253
|
|
$
|
247,676
|
Book
overdraft
|
|
|
10,955
|
|
|
31,027
|
Accrued
liabilities
|
|
|
269,402
|
|
|
260,603
|
Deferred
revenue
|
|
|
134,081
|
|
|
139,017
|
Current portion of
contingent consideration
|
|
|
21,453
|
|
|
27,562
|
Current liabilities
held for sale
|
|
|
3,383
|
|
|
7,798
|
Current portion of
long-term debt and notes payable
|
|
|
1,650
|
|
|
11,439
|
Total current
liabilities
|
|
|
692,177
|
|
|
725,122
|
|
|
|
|
|
|
|
Long-term debt and
notes payable
|
|
|
3,616,760
|
|
|
3,946,178
|
Long-term portion of
contingent consideration
|
|
|
30,373
|
|
|
30,765
|
Long-term liabilities
held for sale
|
|
|
-
|
|
|
449
|
Other long-term
liabilities
|
|
|
331,074
|
|
|
301,038
|
Deferred income
taxes
|
|
|
778,664
|
|
|
812,648
|
Total
liabilities
|
|
|
5,449,048
|
|
|
5,816,200
|
|
|
|
|
|
|
|
Equity:
|
|
|
|
|
|
|
Common shares:
175,426,824 shares issued and 175,201,895 shares outstanding at
December 31, 2016; 175,753,513 shares issued and 175,556,828
shares outstanding at March 31, 2017
|
|
|
4,174,808
|
|
|
4,179,123
|
Additional paid-in
capital
|
|
|
102,220
|
|
|
96,745
|
Accumulated other
comprehensive loss
|
|
|
(43,001)
|
|
|
(25,415)
|
Treasury shares:
224,929 and 196,685 shares at December 31, 2016 and March 31, 2017,
respectively
|
|
|
-
|
|
|
-
|
Retained
earnings
|
|
|
1,413,488
|
|
|
1,395,271
|
Total Waste
Connections' equity
|
|
|
5,647,515
|
|
|
5,645,724
|
Noncontrolling
interest in subsidiaries
|
|
|
7,362
|
|
|
7,508
|
Total
equity
|
|
|
5,654,877
|
|
|
5,653,232
|
|
|
|
$
|
11,103,925
|
|
$
|
11,469,432
|
|
|
|
|
|
|
|
|
WASTE CONNECTIONS,
INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
THREE MONTHS ENDED
MARCH 31, 2016 AND 2017
|
(Unaudited)
|
(in thousands of U.S.
dollars)
|
|
|
|
|
Three months ended
March 31,
|
|
|
|
|
2016
|
|
|
2017
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
Net income
|
|
$
|
45,017
|
|
$
|
15,020
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
Loss on disposal of
assets and impairments
|
|
|
231
|
|
|
129,887
|
Depreciation
|
|
|
60,897
|
|
|
125,240
|
Amortization of
intangibles
|
|
|
7,694
|
|
|
25,510
|
Foreign currency
transaction loss
|
|
|
-
|
|
|
590
|
Deferred income taxes,
net of acquisitions
|
|
|
17,473
|
|
|
(26,528)
|
Amortization of debt
issuance costs
|
|
|
670
|
|
|
1,013
|
Share-based
compensation
|
|
|
5,299
|
|
|
12,989
|
Interest income on
restricted assets
|
|
|
(129)
|
|
|
(137)
|
Interest
accretion
|
|
|
1,465
|
|
|
3,424
|
Excess tax benefit
associated with equity-based compensation
|
|
|
(4,434)
|
|
|
-
|
Adjustments to
contingent consideration
|
|
|
(75)
|
|
|
11,313
|
Payment of contingent
consideration recorded in earnings
|
|
|
(33)
|
|
|
-
|
Net change in
operating assets and liabilities, net of acquisitions
|
|
|
30,641
|
|
|
(10,844)
|
Net cash provided by
operating activities
|
|
|
164,716
|
|
|
287,477
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
Payments for
acquisitions, net of cash acquired
|
|
|
(3,555)
|
|
|
(344,265)
|
Capital expenditures
for property and equipment
|
|
|
(56,575)
|
|
|
(91,205)
|
Proceeds from disposal
of assets
|
|
|
681
|
|
|
18,815
|
Change in restricted
assets, net of interest income
|
|
|
260
|
|
|
4,446
|
Other
|
|
|
147
|
|
|
(650)
|
Net cash used in
investing activities
|
|
|
(59,042)
|
|
|
(412,859)
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
Proceeds from
long-term debt
|
|
|
115,000
|
|
|
436,086
|
Principal payments on
notes payable and long-term debt
|
|
|
(197,024)
|
|
|
(170,374)
|
Payment of contingent
consideration recorded at acquisition date
|
|
|
(2,217)
|
|
|
(5,290)
|
Change in book
overdraft
|
|
|
(151)
|
|
|
20,047
|
Proceeds from option
and warrant exercises
|
|
|
-
|
|
|
1,946
|
Excess tax benefit
associated with equity-based compensation
|
|
|
4,434
|
|
|
-
|
Payments for cash
dividends
|
|
|
(17,791)
|
|
|
(31,707)
|
Tax withholdings
related to net share settlements of restricted share
units
|
|
|
(9,632)
|
|
|
(13,030)
|
Distributions to
noncontrolling interests
|
|
|
(4)
|
|
|
-
|
Debt issuance
costs
|
|
|
-
|
|
|
(633)
|
Proceeds from sale of
common shares held in trust
|
|
|
-
|
|
|
2,369
|
Net cash provided by
(used in) financing activities
|
|
|
(107,385)
|
|
|
239,414
|
Effect of exchange
rates changes on cash and equivalents
|
|
|
-
|
|
|
82
|
Net increase
(decrease) in cash and equivalents
|
|
|
(1,711)
|
|
|
114,114
|
Cash and equivalents
at beginning of period
|
|
|
10,974
|
|
|
154,382
|
Less: change in cash
held for sale
|
|
|
-
|
|
|
(27)
|
Cash and equivalents
at end of period
|
|
$
|
9,263
|
|
$
|
268,469
|
|
|
|
|
|
|
|
|
|
ADDITIONAL STATISTICS
(in thousands of
U.S. dollars, except where noted)
Solid Waste Internal Growth: The following table
reflects a breakdown of the components of our solid waste internal
growth for the three months ended March 31,
2017:
|
Three months
ended March 31,
2017
|
|
Solid Waste Internal
Growth:
Core
Price
|
2.6%
|
|
Surcharges
|
(0.0%)
|
|
Volume
|
2.1%
|
|
Recycling
|
1.5%
|
|
Total Solid Waste
Internal Growth
|
6.2%
|
|
Revenue Breakdown: The following table reflects a
breakdown of our revenue for the three month periods ended
March 31, 2016 and 2017:
|
Three Months Ended
March 31, 2016
|
|
|
Revenue
|
|
Inter-company
Elimination
|
|
|
Reported
Revenue
|
|
%
|
Solid Waste
Collection
|
$
|
356,598
|
|
$
|
(1,321)
|
|
$
|
355,277
|
|
69.0%
|
Solid Waste Disposal
and Transfer
|
|
170,083
|
|
|
(66,034)
|
|
|
104,049
|
|
20.2%
|
Solid Waste
Recycling
|
|
10,619
|
|
|
(639)
|
|
|
9,980
|
|
2.0%
|
E&P Waste
Treatment, Recovery and Disposal
|
|
32,851
|
|
|
(2,366)
|
|
|
30,485
|
|
5.9%
|
Intermodal and
Other
|
|
14,889
|
|
|
-
|
|
|
14,889
|
|
2.9%
|
Total
|
$
|
585,040
|
|
$
|
(70,360)
|
|
$
|
514,680
|
|
100.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31, 2017
|
|
|
Revenue
|
|
Inter-company
Elimination
|
|
|
Reported
Revenue
|
|
%
|
Solid Waste
Collection
|
$
|
768,346
|
|
$
|
(2,200)
|
|
$
|
766,146
|
|
70.2%
|
Solid Waste Disposal
and Transfer
|
|
357,025
|
|
|
(143,441)
|
|
|
213,584
|
|
19.6%
|
Solid Waste
Recycling
|
|
43,889
|
|
|
(2,584)
|
|
|
41,305
|
|
3.8%
|
E&P Waste
Treatment, Recovery and Disposal
|
|
39,821
|
|
|
(2,968)
|
|
|
36,853
|
|
3.4%
|
Intermodal and
Other
|
|
33,765
|
|
|
(387)
|
|
|
33,378
|
|
3.0%
|
Total
|
$
|
1,242,846
|
|
$
|
(151,580)
|
|
$
|
1,091,266
|
|
100.0%
|
|
|
Contribution from Acquisitions: The following table
reflects revenues from acquisitions, net of divestitures, for the
three month periods ended March 31,
2016 and 2017:
|
Three months
ended
March 31,
|
|
2016
|
|
2017
|
Solid waste,
net
|
$
|
21,496
|
|
$
|
538,900
|
E&P waste,
net
|
|
-
|
|
|
-
|
Acquisitions,
net
|
$
|
21,496
|
|
$
|
538,900
|
|
|
|
|
|
|
|
ADDITIONAL STATISTICS (continued)
(in
thousands of U.S. dollars, except where noted)
Other Cash Flow Items: The following table reflects cash
interest and cash taxes for the three month periods ended
March 31, 2016 and 2017:
|
Three months
ended
March 31,
|
|
|
2016
|
|
2017
|
|
Cash Interest
Paid
|
$
|
16,257
|
|
$
|
22,302
|
|
Cash Taxes
Paid
|
|
901
|
|
|
14,017
|
|
Debt to Book Capitalization as of March 31, 2017: 41%
Internalization for the three months ended
March 31, 2017: 54%
Days Sales Outstanding for the three months ended
March 31, 2017: 40 (29 net
of deferred revenue)
Share Information for the three months ended March 31, 2017:
Basic shares
outstanding
|
175,374,630
|
Dilutive effect of
warrants
|
42,218
|
Dilutive effect of
restricted share units
|
518,634
|
Diluted shares
outstanding
|
175,935,482
|
NON-GAAP RECONCILIATION SCHEDULE
(in
thousands of U.S. dollars, except where noted)
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 net income attributable to noncontrolling
interests, plus or minus income tax provision (benefit), plus
interest expense, 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, plus foreign currency transaction loss,
less foreign currency transaction gain. 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
March 31,
|
|
|
2016
|
|
2017
|
|
Net income
attributable to Waste Connections
|
$
|
44,842
|
|
$
|
14,874
|
|
Plus: Net income
attributable to noncontrolling interests
|
|
175
|
|
|
146
|
|
Plus (less): Income
tax provision (benefit)
|
|
29,000
|
|
|
(16,871)
|
|
Plus: Interest
expense
|
|
17,184
|
|
|
29,131
|
|
Plus: Depreciation
and amortization
|
|
68,591
|
|
|
150,750
|
|
Plus: Closure and
post-closure accretion
|
|
1,116
|
|
|
2,917
|
|
Plus: Impairments and
other operating items
|
|
236
|
|
|
141,681
|
|
Less: Other income,
net
|
|
(222)
|
|
|
(1,466)
|
|
Plus: Foreign
currency transaction loss
|
|
-
|
|
|
590
|
|
Adjustments:
|
|
|
|
|
|
|
Plus:
Transaction-related expenses (a)
|
|
8,815
|
|
|
1,744
|
|
Plus: Pre-existing
Progressive Waste share-based grants (b)
|
|
-
|
|
|
6,475
|
|
Plus:
Integration-related and other expenses (c)
|
|
-
|
|
|
2,828
|
|
Adjusted
EBITDA
|
$
|
169,737
|
|
$
|
332,799
|
|
|
|
|
|
|
|
|
As % of
revenues
|
|
33.0%
|
|
|
30.5%
|
|
|
|
|
|
|
|
|
____________________________________________
|
(a)
|
Reflects the addback
of acquisition-related transaction costs.
|
(b)
|
Reflects share-based
compensation costs, including changes in fair value, associated
with share-based awards granted by Progressive Waste outstanding at
the time of the Progressive Waste acquisition.
|
(c)
|
Reflects the addback
of professional fees and other integration-related items, including
severance and rebranding costs, associated with the Progressive
Waste acquisition.
|
NON-GAAP RECONCILIATION SCHEDULE
(continued)
(in thousands of U.S. dollars, except where
noted)
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
valuation and liquidity measure in the solid waste industry.
Management uses adjusted free cash flow as one of the principal
measures to evaluate and monitor the ongoing financial performance
of Waste Connections' operations. Waste Connections defines
adjusted free cash flow as net cash provided by operating
activities, plus proceeds from disposal of assets, plus or minus
change in book overdraft, plus excess tax benefit associated with
equity-based compensation, less capital expenditures for property
and equipment and distributions to noncontrolling interests.
Waste Connections further adjusts this calculation to exclude the
effects of 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
liquidity or financial measures. Other companies may
calculate adjusted free cash flow differently.
|
|
Three months
ended
March 31,
|
|
|
|
2016
|
|
2017
|
|
Net cash provided by
operating activities
|
|
$
|
164,716
|
|
$
|
287,477
|
|
Plus/(Less): Change
in book overdraft
|
|
|
(151)
|
|
|
20,047
|
|
Plus: Proceeds from
disposal of assets
|
|
|
681
|
|
|
18,815
|
|
Plus: Excess tax
benefit associated with equity-based compensation
|
|
|
4,434
|
|
|
-
|
|
Less: Capital
expenditures for property and equipment
|
|
|
(56,575)
|
|
|
(91,205)
|
|
Less: Distributions
to noncontrolling interests
|
|
|
(4)
|
|
|
-
|
|
Adjustments:
|
|
|
|
|
|
|
|
Payment of contingent
consideration recorded in earnings (a)
|
|
|
33
|
|
|
-
|
|
Cash received for
divestitures (b)
|
|
|
-
|
|
|
(17,400)
|
|
Transaction-related expenses
(c)
|
|
|
685
|
|
|
1,744
|
|
Integration-related and
other expenses (d)
|
|
|
-
|
|
|
459
|
|
Pre-existing Progressive
Waste share-based grants (e)
|
|
|
-
|
|
|
12,714
|
|
Synergy bonus (f)
|
|
|
-
|
|
|
11,798
|
|
Tax effect (g)
|
|
|
(261)
|
|
|
(6,959)
|
|
Adjusted free cash
flow
|
|
$
|
113,558
|
|
$
|
237,490
|
|
|
|
|
|
|
|
|
|
As % of
revenues
|
|
|
22.1%
|
|
|
21.8%
|
|
|
|
|
|
|
|
|
|
____________________________________________
|
(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
Progressive Waste operations.
|
(c)
|
Reflects the addback
of acquisition-related transaction costs.
|
(d)
|
Reflects the addback
of professional fees and other integration-related items, including
severance and rebranding costs, associated with the Progressive
Waste acquisition.
|
(e)
|
Reflects the cash
settlement of pre-existing Progressive Waste share-based awards
exercised during the period.
|
(f)
|
Reflects the addback
of cash bonuses paid pursuant to the Company's Synergy Bonus
Program adopted on July 19, 2016 in conjunction with the
Progressive Waste acquisition.
|
(g)
|
The aggregate tax
effect of footnotes (a) through (f) is calculated based on the
applied tax rates for the respective periods.
|
NON-GAAP RECONCILIATION SCHEDULE
(continued)
(in thousands of U.S. dollars, except per share
amounts)
Reconciliation of Net Income attributable to Waste Connections
to 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
March 31,
|
|
|
|
2016
|
|
2017
|
|
Reported net income
attributable to Waste Connections
|
|
$
|
44,842
|
|
$
|
14,874
|
|
Adjustments:
|
|
|
|
|
|
|
|
Amortization of
intangibles (a)
|
|
|
7,694
|
|
|
25,510
|
|
Impairments and other
operating items (b)
|
|
|
236
|
|
|
141,681
|
|
Transaction-related
expenses (c)
|
|
|
8,815
|
|
|
1,744
|
|
Pre-existing
Progressive Waste share-based grants (d)
|
|
|
-
|
|
|
6,475
|
|
Integration-related
and other expenses (e)
|
|
|
-
|
|
|
2,828
|
|
Tax effect
(f)
|
|
|
(6,371)
|
|
|
(62,763)
|
|
Adjusted net income
attributable to Waste Connections
|
|
$
|
55,216
|
|
$
|
130,349
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
common share attributable to Waste Connections' common
shareholders:
|
|
|
|
|
|
|
|
Reported net
income
|
|
$
|
0.36
|
|
$
|
0.08
|
|
Adjusted net
income
|
|
$
|
0.45
|
|
$
|
0.74
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
_____________________________________________________
|
(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 share-based
compensation costs, including changes in fair value, associated
with share-based awards granted by Progressive Waste outstanding at
the time of the Progressive Waste acquisition.
|
(e)
|
Reflects the addback
of professional fees and other integration-related items, including
severance and rebranding costs, associated with the Progressive
Waste acquisition.
|
(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.
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/waste-connections-reports-first-quarter-2017-results-300446395.html
SOURCE Waste Connections, Inc.