01—Abstract
Summary
Summary of the 8-K filed April 25, 2024. Cited figures are marked; the original filing is the authoritative source.
Waste Connections, Inc. filed this Form 8-K under Item 7.01 (Regulation FD Disclosure) on April 25, 2024, to restate its second quarter 2024 outlook highlighted during its earnings conference call that day.
The company estimates second quarter revenue of $2.200 billion to $2.225 billiona, with net income attributable to Waste Connections of approximately $263 million to $268 million and Adjusted EBITDA of approximately $715 million to $723 million, or 32.5% of revenue. On the operating drivers, the company expects solid waste price plus volume growth of approximately 4.0%, composed of total price of 6.5% to 7% (core price of 7% to 7.5%) and volume down 2.5% to 3%. The filing notes these estimates assume no significant change in underlying economic trends and exclude any impact from additional acquisitions that may close during the rest of the year or expensing of transaction-related items.
The filing includes a non-GAAP reconciliation from net income to Adjusted EBITDA, with estimated income tax provision of $81 million to $82 millionb (approximately a 23.5% effective rate), interest expense of $82 million, depreciation and depletion of $238 million to $240 million, and amortization of $44 million. The company states this information is furnished rather than filed for purposes of Section 18 of the Exchange Act.
02—Key points
Key Highlights
- Q2 2024 revenue outlook of $2.200 billion to $2.225 billion
- Net income attributable to Waste Connections estimated at approximately $263 million to $268 million
- Adjusted EBITDA estimated at approximately $715 million to $723 million, or about 32.5% of revenue
- Solid waste price plus volume growth expected at approximately 4.0%, with total price of 6.5% to 7% (core price 7% to 7.5%)
- Volume expected to be down 2.5% to 3%
- Estimated income tax provision of $81 million to $82 million, approximately a 23.5% effective rate
- Outlook excludes impact of acquisitions that may close later in the year and transaction-related expenses
03—Questions
Frequently Asked Questions
What revenue and earnings did Waste Connections guide to for the second quarter of 2024?
The company estimated second quarter 2024 revenue of $2.200 billion to $2.225 billion, net income attributable to Waste Connections of approximately $263 million to $268 million, and Adjusted EBITDA of approximately $715 million to $723 million, or 32.5% of revenue.
What pricing and volume trends did the company expect?
The company expected solid waste price plus volume growth of approximately 4.0%, driven by total price of 6.5% to 7% (core price of 7% to 7.5%), offset by volume down 2.5% to 3%.
What assumptions underlie these estimates?
The estimates assume no significant change in underlying economic trends. They also exclude any impact from additional acquisitions that may close during the remainder of the year and expensing of transaction-related items during the period.
How is Adjusted EBITDA defined and why is it used?
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. Management uses it as a principal measure to evaluate and monitor ongoing operating performance. It starts from net income attributable to Waste Connections and adds back items such as income taxes, interest, depreciation and amortization, and closure and post-closure accretion, among other adjustments.
Is the information in this filing considered filed with the SEC?
The company states that the information furnished under Item 7.01 is not deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, 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.
04—Continue