FOR IMMEDIATE RELEASE
ADVANCED DISPOSAL ANNOUNCES THIRD QUARTER RESULTS
Strong revenue growth of 4.7% driven by continued disciplined pricing
PONTE VEDRA, Fla. (October 29, 2019) – Advanced Disposal Services, Inc. (NYSE: ADSW), (d/b/a Advanced Disposal) announced today revenue of $419.5 million for the three months ended September 30, 2019 versus $400.6 million in the same period of the prior year. Net income during the third quarter 2019 was $3.6 million or $0.04 per diluted share and adjusted net income, which excludes certain gains and expenses, was $16.9 million, or $0.19 per diluted share.
"Our operating philosophy remains focused on safely providing an excellent service experience for our customers, coupled with disciplined pricing to generate strong cash flow for our shareholders," said Richard Burke, CEO. "During the third quarter, we were able to achieve 4.7% revenue growth led by a 3.0% increase in average yield. Year-to-date, we have also overcome headwinds related to recycling, leachate, and interest costs to achieve $229.2 million in cash flow from operations and $111.0 million in adjusted free cash flow."
Third Quarter Financial Highlights
Revenue of $419.5 million represented a 4.7% increase
Achieved total organic growth of 4.1%, which included average yield of 3.0% and volume growth of 1.1%
Year-over-year growth from acquisitions was 1.5%
Net income was $3.6 million or $0.04 per diluted share
Achieved adjusted EBITDA of $116.5 million, which included a $4.8 million year-over-year headwind related to declining recycling prices and higher recycling processing costs
Cash provided by operating activities was $229.2 million year-to-date 2019
Adjusted free cash flow year-to-date was $111.0 million
On April 14, 2019, Advanced Disposal entered into a merger agreement with Waste Management, Inc. ("Waste Management") whereby a subsidiary of Waste Management will acquire all outstanding shares of Advanced Disposal for $33.15 per share in cash. In light of the pending transaction, we elected to cease conducting quarterly earnings conference calls until transaction closing, although we will continue to provide a quarterly earnings release. We also elected to enter into an extended quiet period related to investor communications and are no longer providing forward-looking guidance until the transaction is closed.
You should read the following information in conjunction with our audited consolidated financial statements and notes thereto as of and for the year ended December 31, 2018, appearing in our Annual Report on Form 10-K as filed with the Securities and Exchange Commission and our unaudited condensed consolidated financial statements and notes thereto as of and for the three months ended September 30, 2019, appearing in our Form 10-Q, to be filed with the Securities and Exchange Commission.
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 (loss) income 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 Tuesday, October 29, 2019 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.