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WASTE CONNECTIONS REPORTS FIRST QUARTER 2021 RESULTS
|-||Strong solid waste pricing growth, accelerating solid waste volumes and increased resource recovery values drive better than expected Q1 results, an expected 10% solid waste price plus volume growth in Q2, and improving outlook for 2021|
|-||Revenue of $1.396 billion, exceeding outlook|
|-||Net income(a) of $160.3 million, and adjusted EBITDA(b) of $433.2 million, or 31.0% of revenue, exceeding outlook and up 80 basis points year over year|
|-||Net income and adjusted net income(b) of $0.61 and $0.70 per share, respectively|
|-||Net cash provided by operating activities of $400.4 million and adjusted free cash flow(b) of $289.8 million, or 20.8% of revenue and up 22.9% year over year|
TORONTO, ONTARIO, April 28, 2021 - Waste Connections, Inc. (TSX/NYSE: WCN) (“Waste Connections” or the “Company”) today announced its results for the first quarter of 2021.
“We are extremely pleased by the increasing momentum throughout the first quarter, with high flow through from returning solid waste volumes and increased resource recovery values setting up for outsized performance in 2021. These tailwinds, bolstered by strong solid waste pricing retention, drove adjusted EBITDA(b) margin 70 basis points higher than expected in the period. Adjusted EBITDA(b) margin in Q1 was 31.0%, up 80 basis points year over year, driven primarily by an estimated 110 basis points margin expansion in underlying solid waste collection, transfer and disposal, with another 100 basis points from higher recovered commodity values. Adjusted free cash flow(b) was $289.8 million, or 20.8% of revenue in the period, positioning us to comfortably exceed our minimum outlook of $950 million for the full year,” said Worthing F. Jackman, President and Chief Executive Officer. “Solid waste activity further accelerated as we exited the first quarter, positioning us for an expected double-digit solid waste price plus volume growth in the second quarter.”
Mr. Jackman added, “We knew that our differentiated response to the COVID-19 pandemic would leave us well-positioned as local economies reopened, and we are encouraged by improving macro trends and our strong operating and financial performance as we anniversary the onset of the pandemic. COVID-19-related impacts to our business continue to abate, but most importantly, our commitment to and support of our employees and their families are unwavering.”
Mr. Jackman continued, “We are also encouraged by the cadence of acquisition dialogue and the high quality of potential opportunities, both of which suggest the potential for another outsized year of such activity, for which we are well-positioned. Our balance sheet strength also provides the flexibility for further increasing return of capital to shareholders.”
Financial Impact from COVID-19
March 11, 2021 marked the one year anniversary of COVID-19 being declared a global pandemic by the World Health Organization. The related economic disruptions largely associated with closures or restrictions put into effect following the onset of the COVID-19 pandemic resulted in declines in solid waste commercial collection, transfer station and landfill volumes, and roll off activity. Throughout the remaining fiscal year 2020, solid waste revenue and reported volumes largely reflected the pace and shape of the closures and subsequent reopening activity, with the timing and magnitude of recovery varying by market. Reported solid waste volumes in 2020 turned slightly negative in Q1, were most negative in Q2, and showed sequential improvement during the second half of the year, finishing the year at negative 3.1% in Q4. In Q1 2021, the final period to include comparisons to pre-COVID-19 activity levels on a year over year basis, solid waste volumes were down 3.2%, reflecting the strong start to 2020 prior to the onset
The following information was filed by Waste Connections, Inc. (WCN) on Wednesday, April 28, 2021 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.
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