Loading...
•
Mar 31, 2020
Waste Connections Q1 2020 Earnings Report
Waste Connections' first quarter performance was affected by COVID-19, but the company exceeded adjusted EBITDA outlook and delivered adjusted free cash flow of $235.7 million.
Key Takeaways
Waste Connections reported revenue of $1.352 billion, up 8.7% year-over-year. Net income attributable to Waste Connections was $143.0 million, or $0.54 per share. Adjusted net income was $170.6 million, or $0.65 per share. Adjusted EBITDA was $408.5 million, representing 30.2% of revenue. Adjusted free cash flow was $235.7 million, or 17.4% of revenue.
Revenue increased by 8.7% to $1.352 billion.
Net income attributable to Waste Connections was $143.0 million, or $0.54 per share.
Adjusted net income attributable to Waste Connections was $170.6 million, or $0.65 per share.
Adjusted free cash flow was $235.7 million, or 17.4% of revenue.
Forward Guidance
The financial impact of the COVID-19 outbreak and the pace of recovery remain uncertain. However, assuming that April reflects the depths of any impact, the company is encouraged that revenue on a reported basis for the month declined 6.0% year-over-year, or 1.4% excluding Canada and the Northeast U.S., which were hardest hit.
Positive Outlook
- Solid waste trends have improved sequentially late in the month and into early May.
- A continuing economic recovery should reduce the revenue impact going forward.
- An approximate 20% reduction in budgeted capital expenditures for the year will help offset a portion of the high margin decremental and flow thru associated with pandemic-related decreases in commercial collection activity.
- Cost controls will help offset a portion of the high margin decremental and flow thru associated with pandemic-related decreases in commercial collection activity.
- Cost controls will help offset a portion of the high margin decremental and flow thru associated with transfer and landfill volumes and a reduction in E&P waste activity.
Challenges Ahead
- The severity and duration of varying impacts across markets remains uncertain.
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...