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Dec 31, 2019

Waste Connections Q4 2019 Earnings Report

Waste Connections' Q4 2019 results exceeded expectations due to solid waste price growth, E&P waste activity, and acquisition contributions.

Key Takeaways

Waste Connections reported Q4 2019 revenue of $1.362 billion, a 7.9% increase year-over-year. Net income attributable to Waste Connections was $133.3 million, or $0.50 per share, while adjusted net income was $181.4 million, or $0.69 per share. Adjusted EBITDA reached $419.0 million, representing 30.8% of revenue. The company expects revenue in the range of $5.725 billion to $5.775 billion for 2020.

Q4 revenue increased by 7.9% to $1.362 billion.

Net income attributable to Waste Connections was $133.3 million, or $0.50 per share.

Adjusted net income attributable to Waste Connections was $181.4 million, or $0.69 per share.

Adjusted EBITDA was $419.0 million, representing 30.8% of revenue.

Total Revenue
$1.36B
Previous year: $1.26B
+7.9%
EPS
$0.69
Previous year: $0.63
+9.5%
Core Price
5.4%
Volume
-1.4%
Recycling
-0.8%
Gross Profit
$548M
Previous year: $517M
+6.0%
Cash and Equivalents
$327M
Previous year: $319M
+2.3%
Free Cash Flow
$154M
Previous year: $201M
-23.2%
Total Assets
$13.7B
Previous year: $12.6B
+8.8%

Waste Connections

Waste Connections

Waste Connections Revenue by Segment

Forward Guidance

Waste Connections provided its outlook for 2020, excluding impacts from additional acquisitions. Revenue is estimated in the range of $5.725 billion to $5.775 billion. Net income attributable to Waste Connections is estimated in the range of $653.0 million to $668.0 million. Adjusted EBITDA is expected to be in the range of $1.760 billion to $1.785 billion.

Positive Outlook

  • Solid waste price growth of approximately 5.0%
  • Net income attributable to Waste Connections is estimated in the range of $653.0 million to $668.0 million
  • Adjusted EBITDA is estimated in the range of $1.760 billion to $1.785 billion
  • Net cash provided by operating activities is estimated in the range of $1.600 billion to $1.625 billion
  • Adjusted free cash flow is estimated in the range of $975.0 million to $1.0 billion

Challenges Ahead

  • Assumes no change in the current economic environment
  • Outlook excludes any impact from additional acquisitions that may close during the year, and expensing of transaction-related items.
  • E&P waste revenue down approximately 10.0%
  • Values for recycled commodities and renewable energy credits as of year-end 2019
  • Certain components of the outlook for 2020 are subject to quarterly fluctuations.

Revenue & Expenses

Visualization of income flow from segment revenue to net income