Waste Connections, Inc. (TSE:WCN) Files An 8-K Regulation FD Disclosure
Item 7.01 Regulation FD Disclosure.
During our earnings conference call on April 27, 2017, we
highlighted the following outlook for the second quarter 2017.
(Dollar amounts are approximations)
For the second quarter of the year, we estimate our revenue to be
between $1.145 billion and $1.15 billion. We expect core price
plus volume growth for solid waste to be between 3.0% and 3.5%,
reflecting a one month contribution for June from the Progressive
Waste operations. Adjusted EBITDA, as reconciled below, is
estimated to be approximately 31.5% of revenue, or about $362
million.
Q2 2017 OUTLOOK
NON-GAAP RECONCILIATION SCHEDULE
(in thousands of U.S. dollars, except where noted)
Reconciliation of Adjusted EBITDA:
Q2 2017 Outlook | ||||||
Estimate | Observation | |||||
Net income attributable to Waste Connections | $ | 122,000 | ||||
Plus: Net income attributable to noncontrolling interests | ||||||
Plus: Income tax provision | 48,750 | Approximate 28.5% effective rate | ||||
Plus: Interest expense, net | 30,500 | |||||
Plus: Depreciation and depletion | 133,000 | Approximately 11.6% of revenue | ||||
Plus: Amortization | 24,500 | Approximately 2.1% of revenue | ||||
Plus: Closure and post-closure accretion | 3,000 | Approximately 0.25% of revenue | ||||
Adjusted EBITDA | $ | 362,000 | Approximately 31.5% of revenue |
These estimates assume no change in the current economic and
operating environment. They also exclude any rebranding costs or
other items resulting from the Progressive Waste acquisition and
any additional acquisitions or potential divestitures that may
close during the period.
Adjusted EBITDA, a non-GAAP financial measure, is provided
supplementally because it is widely used by investors as a
performance and valuation measure in the solid waste industry.
Management uses adjusted EBITDA as one of the principal measures
to evaluate and monitor the ongoing financial performance of our
operations. We define adjusted EBITDA as net income attributable
to Waste Connections, plus net income attributable to
noncontrolling interests, plus or minus income tax provision
(benefit), plus interest expense, plus depreciation and
amortization expense, plus closure and post-closure accretion
expense, plus or minus any loss or gain on impairments and other
operating items, plus other expense, less other income, plus
foreign currency transaction loss, less foreign currency
transaction gain. We further adjust this calculation to exclude
the effects of other items management believes impact the ability
to assess the operating performance of our business. This measure
is not a substitute for, and should be used in conjunction with,
GAAP financial measures. Other companies may calculate adjusted
EBITDA differently.
The information furnished in Item 7.01 is not deemed filed for
purposes of Section 18 of the Securities Exchange Act of 1934, as
amended, is not subject to the liabilities of that section, and
is not deemed incorporated by reference in any filing under the
Securities Act of 1933, as amended.
Safe Harbor and Forward-Looking Information
This document contains forward-looking statements within the
meaning of the safe harbor provisions of the U.S. Private
Securities Litigation Reform Act of 1995 (PSLRA) and
forward-looking information within the meaning of applicable
Canadian securities laws. These forward-looking statements are
neither historical facts nor assurances of future performance and
reflect Waste Connections current beliefs and expectations
regarding future events and operating performance. These
forward-looking statements are often identified by the words may,
might, believes, thinks, expects, intends or other words of
similar meaning. All of the forward-looking statements included
in this document are made to the safe harbor provisions of the
PSLRA and applicable Canadian securities laws. Forward-looking
statements involve risks and uncertainties. Forward-looking
statements in this document include, but are not limited to,
statements about the Companys expected second quarter 2017
financial results. Important factors that could cause actual
results to differ, possibly materially, from those indicated by
the forward-looking statements include, but are not limited to
risk factors detailed from time to time in filings that have been
made by the Company with the U.S. Securities and Exchange
Commission and the securities commissions or similar regulatory
authorities in Canada. You should not place undue reliance on
forward-looking statements, which speak only as of the date of
this document. Waste Connections undertakes no obligation to
update the forward-looking statements set forth in this document,
whether as a result of new information, future events, or
otherwise, unless required by applicable securities laws.
About Waste Connections, Inc. (TSE:WCN)
Waste Connections Inc, formerly Progressive Waste Solutions Ltd, is a Canada-based waste management company. The Company provides waste collection, recycling and disposal services to commercial, industrial, municipal and residential customers in over 10 states in the United States, and the District of Columbia, and in over six Canadian provinces. The Company operates through three segments: the East, the West and the North. The business segments are vertically integrated and their operations include the collection and disposal of waste and recyclable materials, transfer station operations, material recovery facilities, landfills and landfill gas to energy facilities. The Company offers various solutions for business, residential and public sector. The Company offers commercial, industrial and manufacturing, construction and demolition, and Leadership in Energy and Environmental Design (LEED) services, among others for business. Waste Connections, Inc. (TSE:WCN) Recent Trading Information
Waste Connections, Inc. (TSE:WCN) closed its last trading session 00.00 at 121.52 with 124,886 shares trading hands.