Skip to content
AnalystLens

Waste Connections 8-K Report, Financial Results (Apr 24, 2024)

Reports
Earnings & Results·Regulation FD·Exhibits & Filings
Filing Date
Filed April 24, 2024
Period End
April 24, 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 April 24, 2024. Cited figures are marked; the original filing is the authoritative source.

Waste Connections, Inc. reported first quarter 2024 results on April 24, 2024, in a press release furnished as Exhibit 99.1.

Revenue was $2.073 billiona, up from $1.901 billion a year earlier, and the company described it as above its outlook and up 9.1% year over year. Net income attributable to Waste Connections was $230.1 million, or $0.89 per diluted share, compared with $197.8 million, or $0.77, in the prior-year period. Adjusted EBITDA was $650.7 million, up 14.8% year over year, with an adjusted EBITDA margin of 31.4%, 160 basis points higher than a year earlier.

Adjusted net income was $268.7 millionb, or $1.04 per diluted share. Management attributed the results to price-led organic growth in solid waste, improving operating trends, and continued acquisitions. Cash generation was $490.3 million in net cash provided by operating activities, and adjusted free cash flow was $324.8 million.

Cash paid for acquisitions, net of cash acquired, was $1.156 billionc in the quarter, following the Secure Energy transaction completed in February. Year to date, acquired annualized revenue exceeded $375 million, and solid waste acquisitions totaling approximately $150 million in annualized revenue had closed, including a new market entry serving customers in Indiana and Michigan. Long-term debt and notes payable rose to $7.80 billion at March 31, 2024, from $6.72 billion at December 31, 2023.

The company reported debt to book capitalization of 50%d at March 31, 2024. Management said it expects 2024 to be one of its busiest years for acquisitions and is increasing capital returned to shareholders.

Quarterly cash dividends per share rose to $0.285 from $0.255. The company cited a full-year outlook for adjusted EBITDA margin of 32.7%, which it expects to exceed, and stated that it will file a Form 8-K on April 25, 2024, with its second quarter 2024 outlook for revenue, solid waste price plus volume growth, and adjusted EBITDA.

02—Key points

Key Highlights

  1. Revenue of $2.073 billion, up from $1.901 billion, and described as above outlook and up 9.1% year over year.
  2. Net income attributable to Waste Connections of $230.1 million ($0.89 per diluted share), versus $197.8 million ($0.77) a year earlier; adjusted net income of $268.7 million ($1.04 per diluted share).
  3. Adjusted EBITDA of $650.7 million, up 14.8% year over year, with a 31.4% margin, 160 basis points higher; full-year adjusted EBITDA margin outlook of 32.7%.
  4. Solid waste internal growth of 4.1%, driven by core price of 7.8%, partly offset by volume of (3.8%) and surcharges of (0.7%).
  5. Net cash provided by operating activities of $490.3 million and adjusted free cash flow of $324.8 million.
  6. Acquisition activity remained elevated: $1.156 billion paid for acquisitions in the quarter, year-to-date acquired annualized revenue above $375 million, and approximately $150 million in annualized solid waste revenue closed to date, including a new market entry in Indiana and Michigan.
  7. Quarterly cash dividend per share increased to $0.285 from $0.255.

03—Questions

Frequently Asked Questions

  1. How did Waste Connections perform in the first quarter of 2024?

    Revenue was $2.073 billion, up 9.1% year over year and above the company's outlook. Net income attributable to Waste Connections was $230.1 million, or $0.89 per diluted share, and adjusted net income was $1.04 per diluted share. Adjusted EBITDA rose 14.8% to $650.7 million, with a 31.4% margin.

  2. What drove growth in the quarter?

    Management attributed the quarter to price-led organic growth in solid waste and improving operating trends, along with recently completed acquisitions. Solid waste internal growth was 4.1%, reflecting core price of 7.8%, offset by volume of (3.8%) and surcharges of (0.7%).

  3. How is the company deploying cash, and what does it plan for 2024?

    The company paid $1.156 billion for acquisitions in the first quarter and generated $490.3 million in operating cash flow and $324.8 million in adjusted free cash flow. Management said acquisition outlays could make 2024 one of its busiest years ever and that it plans to increase capital returned to shareholders, with the quarterly dividend raised to $0.285 per share.

  4. What guidance was given, and when will updated outlook be available?

    The filing cites a full-year 2024 outlook for adjusted EBITDA margin of 32.7%, which management said the company is on track to exceed. The company stated it will file a Form 8-K on April 25, 2024, before market open, providing its second quarter 2024 outlook for revenue, solid waste price plus volume growth, and adjusted EBITDA. A conference call is scheduled for April 25, 2024, at 8:30 A.M. Eastern Time.

04—Continue

← View all 8-K filings