FOR IMMEDIATE RELEASE
ADVANCED DISPOSAL ANNOUNCES THIRD QUARTER RESULTS
Third quarter revenue grows at a company best 8.9% year-over-year
Year-to-date September 30, 2017 cash from operations and adjusted free cash flow already exceed full year 2016 results
Updates to 2017 financial guidance
PONTE VEDRA, Fla. (November 1, 2017) – Advanced Disposal Services, Inc. (NYSE: ADSW), (d/b/a Advanced Disposal) announced today revenue for the three months ended September 30, 2017 of $392.7 million versus $360.6 million in the same period of the prior year. Net income during third quarter 2017 was $3.5 million, or $0.04 per diluted share, versus net income of $3.8 million, or $0.06 per diluted share, in third quarter 2016. Excluding certain gains and expenses, adjusted net income in third quarter 2017 was $13.9 million, an increase of $3.2 million year-over-year, and adjusted diluted earnings per share was $0.16.
"Advanced Disposal has achieved significant year-over-year improvements in cash from operations and adjusted free cash flow as we execute on our strategy" said Richard Burke, CEO. "We also are seeing strong top-line growth through a combination of organic volume gains, disciplined pricing over the long-term, and accretive acquisitions."
Third Quarter Financial Highlights
Revenue of $392.7 million was up 8.9% over the prior year
Achieved combined organic price and volume growth of 3.6% led by strong disposal volume
Year-over-year growth from acquisitions was 4.8% due to the first quarter purchase of CGS Services, Inc. and twelve tuck-in acquisitions completed during the first nine months of 2017
Net income was $3.5 million or $0.04 per diluted share
Adjusted EBITDA of $112.3 million up $3.2 million year-over-year despite impact from storm, start-up, and other unforeseen costs of $3.7 million
Adjusted net income was $13.9 million and adjusted diluted earnings per share was $0.16
Year-to-date cash provided by operating activities was $247.4 million, an increase of 29%
Year-to-date adjusted free cash flow increased 23% to $111.6 million
Fiscal Year 2017 Guidance
The Company expects to continue to achieve strong revenue for the remainder of the year but will also be negatively impacted by a significant decrease in commodity prices and storm-related costs that carryover into the fourth quarter. Based on these factors, Advanced Disposal is making the following updates to its guidance:
Raising its full year 2017 revenue guidance to between $1,490 million to $1,505 million from its previous guidance of between $1,475 million to $1,490 million
Narrowing its adjusted free cash flow guidance to $121 million to $131 million
Revising downward full year adjusted EBITDA guidance to between $416 million and $419 million compared to the previous guidance of $423 million to $433 million
This guidance is based on current economic conditions and does not assume any significant changes in the overall economy. Please refer to the Special Note Regarding Forward-Looking Statements section of this press release.
Advanced Disposal will conduct a quarterly earnings conference call on November 2, 2017 at 9:00 a.m. EST. The call can be
accessed by dialing (866) 478-7805 domestically or (832) 445-1679 internationally and asking for conference ID 61562871 or
the Advanced Disposal Q3 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 Wednesday, November 1, 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.