01—Abstract
Summary
Summary of the 8-K filed July 25, 2024. Cited figures are marked; the original filing is the authoritative source.
Waste Connections, Inc. (WCN) furnished this Form 8-K under Item 7.01 (Regulation FD Disclosure) to set out outlook highlighted during its July 25, 2024 earnings conference call for the third quarter of 2024.
The company estimates third-quarter revenue of $2.275 billion to $2.300 billiona, net income attributable to Waste Connections of approximately $297 million to $302 million, and Adjusted EBITDA of approximately $767 million to $776 million, or approximately 33.7% of revenue. The filing includes a reconciliation from net income to Adjusted EBITDA. Key estimated components include an income tax provision of $91 million to $93 million (approximately 23.5% effective rate), interest expense, net of interest income, of $82 million, depreciation and depletion of $246 million to $248 million (approximately 10.8% of revenue), amortization of $44 million (approximately 1.9% of revenue, or $0.13 per diluted share net of taxes), and closure and post-closure accretion of $7 million.
The estimates assume no change in the current economic environment or underlying economic trends, and exclude any impact from additional acquisitions that may close during the remainder of the year and expensing of transaction-related items. The company states that Adjusted EBITDA is a non-GAAP measure it considers a widely used performance and valuation measure in the solid waste industry. The information is furnished, not filed, for purposes of Section 18 of the Exchange Act.
02—Key points
Key Highlights
- Third-quarter 2024 revenue outlook of $2.275 billion to $2.300 billion
- Estimated net income attributable to Waste Connections of approximately $297 million to $302 million
- Adjusted EBITDA estimated at approximately $767 million to $776 million, or approximately 33.7% of revenue
- Estimated income tax provision of $91 million to $93 million, approximately a 23.5% effective rate
- Depreciation and depletion estimated at $246 million to $248 million, approximately 10.8% of revenue
- Estimates exclude impact of any additional acquisitions closing later in the year and transaction-related expenses
- Outlook assumes no change in the current economic environment or underlying economic trends
03—Questions
Frequently Asked Questions
What is Waste Connections' third-quarter 2024 outlook?
The company estimates third-quarter 2024 revenue of $2.275 billion to $2.300 billion, net income attributable to Waste Connections of approximately $297 million to $302 million, and Adjusted EBITDA of approximately $767 million to $776 million, or approximately 33.7% of revenue.
How does the company define Adjusted EBITDA?
The company defines Adjusted EBITDA as net income attributable to Waste Connections, plus or minus net income (loss) attributable to noncontrolling interests, plus income tax provision, plus interest expense, less interest income, plus depreciation and amortization, plus closure and post-closure accretion, plus or minus impairment losses or gains and other operating items, plus other expense, less other income, with further adjustments for other items management believes affect assessment of operating performance.
What assumptions underlie the outlook?
The estimates assume no change in the current economic environment or 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.
Why does the company present Adjusted EBITDA?
The company states that Adjusted EBITDA is widely used by investors as a performance and valuation measure in the solid waste industry, and that management uses it as one of the principal measures to evaluate and monitor ongoing financial performance of its operations. It is a non-GAAP measure and is not a substitute for GAAP measures.
Is the information in this filing considered filed with the SEC?
No. 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 and is not deemed incorporated by reference in any Securities Act of 1933 filing.
04—Continue