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Sep 30, 2020

Waste Connections Q3 2020 Earnings Report

Waste Connections' Q3 2020 results were announced, revealing revenue of $1.390 billion and adjusted EPS of $0.72, exceeding expectations.

Key Takeaways

Waste Connections reported Q3 2020 results with revenue of $1.390 billion, net income of $158.0 million, and adjusted EPS of $0.72. The company saw sequential improvement in solid waste volumes and increased recovered commodity values. They are also on track for above average acquisition activity.

Revenue of $1.390 billion exceeded outlook.

Net income attributable to Waste Connections was $158.0 million, or $0.60 per share.

Adjusted net income attributable to Waste Connections was $188.6 million, or $0.72 per share.

Adjusted EBITDA was $432.6 million, or 31.1% of revenue, exceeding outlook.

Total Revenue
$1.39B
Previous year: $1.41B
-1.6%
EPS
$0.72
Previous year: $0.73
-1.4%
Core Price
4.1%
Volume
-5.7%
Surcharges
-0.4%
Gross Profit
$561M
Previous year: $577M
-2.9%
Cash and Equivalents
$859M
Previous year: $304M
+182.8%
Free Cash Flow
$284M
Previous year: $253M
+12.3%
Total Assets
$13.8B
Previous year: $13.3B
+4.4%

Waste Connections

Waste Connections

Forward Guidance

Waste Connections anticipates emerging from the challenging period better positioned financially and operationally.

Positive Outlook

  • Expect to be better positioned financially.
  • Tremendous flexibility with respect to capital allocation.
  • Higher operating leverage in solid waste.
  • Safety-related incidents achieving multi-year lows.
  • Voluntary turnover levels already achieving multi-year lows.