FOR IMMEDIATE RELEASE
ADVANCED DISPOSAL ANNOUNCES FIRST QUARTER RESULTS
Company achieves significant year-over-year improvement in cash flow from operations and executes on acquisition growth strategy
PONTE VEDRA, Fla. (May 4, 2017) – Advanced Disposal Services, Inc. (NYSE: ADSW), (d/b/a Advanced Disposal) announced today revenue for the three months ended March 31, 2017 of $347.4 million versus $333.8 million in the same period of the prior year. Net loss during first quarter 2017 was $7.0 million, or $0.08 per diluted share, versus net loss of $14.3 million, or $0.22 per diluted share, in first quarter 2016. The company achieved quarterly adjusted EBITDA of $87.2 million, an increase of $0.4 million versus first quarter 2016. Adjusted EBITDA margins were 25.1% during first quarter 2017.
Revenue gains were driven by acquisition growth of 1.8% due to the company's recent purchase of CGS Services, Inc. This acquisition is a new market entry, expanding Advanced Disposal's presence into a 14 county area in central and eastern Indiana through a vertically-integrated network of solid waste collection, recycling, and disposal assets. The company separately completed three tuck-in acquisitions during first quarter 2017 and also achieved continued strong pricing with average yield for the quarter of 2.4%.
Net loss improved $7.3 million from the prior year and adjusted EBITDA increased $0.4 million during first quarter 2017. Gains from pricing initiatives and higher recycling commodity rates were partially offset by anticipated headwinds related to net fuel costs, start-up expenses related to the CGS acquisition, and a severance charge. Interest expense declined $11.9 million year-over-year led by the company's principal repayments from proceeds raised during is initial public offering and subsequent debt refinancing in fourth quarter 2016. Cash from operating activities improved $41.3 million to $95.3 million for first quarter 2017, and adjusted free cash flow excluding realized losses on derivatives improved $13.4 million to $40.5 million.
"Advanced Disposal remains committed to generating improving cash flow for our shareholders over time," said Richard Burke, CEO. "We are pleased to see the significant year-over-year improvement in cash from operations as we continue to execute on our strategy. We are also excited that we were able to redeploy some of the cash generated during the quarter to enter into a new vertically integrated market by closing on the acquisition of CGS. CGS is an established operation in a secondary market that has developed an excellent reputation and provides us with a new platform to continue to grow our business."
Advanced Disposal will conduct a quarterly earnings conference call on May 5, 2017 at 10:00 a.m. EST. The call can be
accessed by dialing (866) 478-7805 domestically or (832) 445-1679 internationally and asking for conference ID 99247837 or
the Advanced Disposal Q1 2017 earnings call. This call will be recorded and available via replay approximately two hours after
the completion of the earnings call for thirty days. You may access the recording by dialing (855) 859-2056 or through the link
on the investor relations page of our website at www.AdvancedDisposal.com.
The calculation of free cash flow and adjusted free cash flow, as well as details of charges and other expenses that are excluded
from EBITDA and net income (loss) in arriving at adjusted EBITDA and adjusted net income, are contained in the “Reconciliation of Certain Non-GAAP Measures” section of this press release.
The following information was filed by Advanced Disposal Services, Inc. (ADSW) on Thursday, May 4, 2017 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.