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Waste Connections 8-K Report, Regulation FD Disclosure (Feb 14, 2024)

Reports
Regulation FD
Filing Date
Filed February 14, 2024
Period End
February 14, 2024
Security
WCN
In the record · 2016–202610-K1110-Q328-K180

WCN filed 11 annual reports (10-K), 32 quarterly reports (10-Q) and 180 current reports (8-K) between 2016 and 2026.

  1. Auditor change8-K · Mar ’17Mar ’17
  2. Leadership change8-K · Aug ’19Aug ’19
  3. Material agreement8-K · Aug ’22Aug ’22
  4. Material agreement8-K · Aug ’26Aug ’26

01—Abstract

Summary

Summary of the 8-K filed February 14, 2024. Cited figures are marked; the original filing is the authoritative source.

Waste Connections, Inc. furnished this Form 8-K under Item 7.01 (Regulation FD Disclosure) to outline its outlook for the first quarter of 2024, as highlighted during its February 14, 2024 earnings conference call.

For Q1 2024, the company estimates revenue of approximately $2.05 billiona, net income attributable to Waste Connections of approximately $226.0 million, and Adjusted EBITDA of approximately $640 million, or 31.2% of revenue. It expects solid waste price plus volume growth of 3.5%, driven by pricing of about 7%. For the full year, in addition to the outlook provided in a separate Form 8-K filed February 13, 2024, the company expects solid waste price plus volume growth of approximately 4.5% to 5.5%, driven by pricing of 6.0% to 7.0%.

The estimates assume no change in the current economic environment and exclude any impact from additional acquisitions that may close during the remainder of the year and expensing of transaction-related items. The Q1 Adjusted EBITDA reconciliation shows an estimated income tax provision of $68.0 millionb (approximately a 23% effective rate), interest expense net of interest income of $76.0 million, depreciation and depletion of $222.5 million (approximately 10.8% of revenue), amortization of $40.0 million, and closure and post-closure accretion of $7.5 million. The information is furnished rather than filed for Section 18 purposes.

02—Key points

Key Highlights

  1. Q1 2024 revenue outlook of approximately $2.05 billion
  2. Q1 2024 net income attributable to Waste Connections estimated at approximately $226.0 million
  3. Q1 2024 Adjusted EBITDA estimated at approximately $640 million, or 31.2% of revenue
  4. Q1 2024 solid waste price plus volume growth expected at 3.5%, driven by pricing of about 7%
  5. Full-year solid waste price plus volume growth expected at approximately 4.5% to 5.5%, with pricing of 6.0% to 7.0%
  6. Q1 depreciation and depletion estimated at $222.5 million (approximately 10.8% of revenue); income tax provision at $68.0 million (approximately 23% effective rate)
  7. Outlook excludes impact of acquisitions that may close later in the year and transaction-related expenses

03—Questions

Frequently Asked Questions

  1. What revenue and profitability does Waste Connections expect for the first quarter of 2024?

    The company estimates first-quarter 2024 revenue of approximately $2.05 billion, net income attributable to Waste Connections of approximately $226.0 million, and Adjusted EBITDA of approximately $640 million, or 31.2% of revenue.

  2. What solid waste growth does the company expect?

    For Q1 2024, solid waste price plus volume growth is estimated at 3.5%, driven by pricing of about 7%. For the full year, the company expects price plus volume growth of approximately 4.5% to 5.5%, driven by pricing of 6.0% to 7.0%.

  3. What assumptions underlie these estimates?

    The estimates assume no change in the current economic environment. They also exclude any impact from additional acquisitions that may close during the remainder of the year and the expensing of transaction-related items.

  4. What is Adjusted EBITDA and how does the company define it?

    Adjusted EBITDA is a non-GAAP measure that the company provides because investors widely use it as a performance and valuation measure in the solid waste industry. It is defined as net income attributable to Waste Connections, adjusted for noncontrolling interests, income tax, interest, depreciation and amortization, closure and post-closure accretion, impairments and other operating items, and other income or expense, among other items. Other companies may calculate it differently.

  5. What are the key components bridging net income to Adjusted EBITDA in the Q1 outlook?

    The outlook includes an income tax provision of $68.0 million (approximately 23% effective rate), interest expense net of interest income of $76.0 million, depreciation and depletion of $222.5 million, amortization of $40.0 million (approximately $0.11 per diluted share net of taxes), and closure and post-closure accretion of $7.5 million.

04—Continue

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