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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.
Waste Connections
Waste Connections
Waste Connections Revenue by Segment
Revenue by Segment
Solid Waste Collection Revenue
CapyFin.comSolid Waste Disposal & Transfer Revenue
CapyFin.comSolid Waste Recycling Revenue
CapyFin.comE&P Waste Treatment Revenue
CapyFin.comIntermodal & Other Revenue
CapyFin.com 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