Solid waste management company reports 5.4 percent increase in revenue

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Solid waste management company reports 5.4 percent increase in revenue

Greentech Lead America: Waste Connections, a solid waste services company, has
reported $425.7 million in revenues, a 5.4 percent increase over $404.0 million
revenue of the last year.

Operating income was $89.1 million compared to $89.3
million in the third quarter of 2011. Operating income in the current year
period included approximately $3.5 million ($2.2 million net of taxes)
associated with costs incurred in connection with the relocation of our
corporate headquarters from California to Texas, acquisition-related
transaction costs and loss on disposal of assets, which were offset by an
approximate $3.5 million ($2.2 million net of taxes) gain from litigation settlement.

Net income attributable to Waste Connections in the
quarter was $49.4 million, or $0.40 per share on a diluted basis of 123.7
million shares. In the year ago period, the Company reported net income
attributable to Waste Connections of $46.3 million, or $0.41 per share on a
diluted basis of 113.2 million shares.

Waste Connections is an integrated solid waste services
company that provides solid waste collection, transfer, disposal and recycling
services in mostly exclusive and secondary markets.   

“We once again are extremely pleased with our performance
for the quarter as revenue, margins and free cash flow exceeded the upper end
of our expectations — notable achievements in light of declining recycled
commodity values realized during the period,” said Ronald J. Mittelstaedt,
chairman and chief executive officer.  

“Throughout the year, we have cautioned investors about
the tepid macro environment, the headwinds of lower recycled commodity prices
and tough disposal comps. We believe the strength of our operating
performance continues to demonstrate the resiliency of our differentiated
strategy,” Mittelstaedt added.

The company is expecting a better 2013, given the
expected highly accretive rollover contribution from acquisitions already
completed or announced this year. The Alaska Waste and SKB acquisitions
completed earlier this year are exceeding the company’s initial expectations,
Mittelstaedt added.

The company has also signed an agreement to acquire the
business of R360 Environmental Solutions, for approximately $1.3 billion in
cash. R360 is 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 oil-rich Permian,
Bakken and Eagle Ford Basins. 

The R360 transaction, which remains subject to certain
closing conditions including receipt of regulatory approvals, remains on track
to close during the fourth quarter of 2012, according to Mittelstaedt.

Net income attributable to Waste Connections for the nine
months ended September 30, 2012, was $123.1 million, or $1.02 per share on a
diluted basis of 121.2 million shares. In the year ago period, the Company
reported net income attributable to Waste Connections of $127.3 million, or
$1.12 per share on a diluted basis of 114.0 million shares. 

Waste Connections also declared an 11.1 percent increase
in the regular quarterly cash dividend on the company’s common stock. The
regular quarterly cash dividend, which increases from $0.09 per share to $0.10
per share, is payable on November 19, 2012, to stockholders of record on the
close of business on November 5, 2012. The Board intends to review the
quarterly dividend each October, with a long-term objective of increasing the amount
of the dividend.

editor@greentechlead.com

 

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