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Waste Connections Reports Third Quarter 2019 Results

Oct 28, 2019

-  Revenue of $1.412 billion, up 10.3%
-  Reports 6.1% price + volume growth, exceeding outlook
-  Net income attributable to Waste Connections of $159.1 million, or $0.60 per share
-  Adjusted net income attributable to Waste Connections* of $192.9 million, or $0.73 per share
-  Adjusted EBITDA* of $443.6 million, or 31.4% of revenue
-  YTD net cash provided by operating activities of $1.185 billion
-  YTD adjusted free cash flow* of $762.9 million, or 18.9% of revenue, up 12.9%
-  Increases regular quarterly cash dividend by 15.6%

TORONTO, Oct. 28, 2019 /PRNewswire/ -- Waste Connections, Inc. (TSX/NYSE: WCN) ("Waste Connections" or the "Company") today announced its results for the third quarter of 2019. 

Waste Connections logo. (PRNewsFoto/Waste Connections, Inc.) (PRNewsFoto/WASTE CONNECTIONS_ INC_)

"Strong organic growth in solid waste and a sequential increase in E&P waste activity enabled us to deliver better than expected results in the period.  Continued price-led solid waste growth and a slight pull-forward of special waste activity drove underlying margin expansion in solid waste collection, transfer and disposal of an estimated 60 basis points in the quarter.  More importantly, adjusted free cash flow* of $763 million year-to-date, or 18.9% of revenue and up almost 13% year-over-year, puts us firmly on track to meet or exceed the adjusted free cash flow outlook for the full year that we communicated in July," said Worthing F. Jackman, President and Chief Executive Officer. 

Mr. Jackman added, "Our strong operating performance, free cash flow growth and balance sheet strength positioned us for another double-digit percentage increase in our quarterly cash dividend, while maintaining tremendous financial flexibility.  We remain well-positioned to fund expected above average acquisition activity in the near term and increased return of capital to shareholders over the long term.  Relatively consistent solid waste organic growth plus the contribution from acquisitions closed year-to-date already sets us up for overall revenue growth in the mid to high single digits and underlying margin expansion in solid waste collection, transfer and disposal in the upcoming year, with additional acquisitions and any potential improvement in commodity-related activities providing further growth." 

Q3 2019 Results

Revenue in the third quarter totaled $1.412 billion, up from $1.281 billion in the year ago period.  Operating income was $236.6 million, which included $12.9 million in impairments and other operating items primarily related to the Company's termination of an E&P landfill development project in the Bakken, and $1.0 million in acquisition-related costs.  This compares to operating income of $232.9 million in the third quarter of 2018, which included $6.9 million in fair value accounting changes associated with certain equity awards, and $0.7 million in integration and acquisition-related costs, partially offset by a $2.0 million gain in impairments and other items primarily related to the divestiture of certain assets acquired in the Progressive Waste acquisition. 

Net income attributable to Waste Connections in the third quarter was $159.1 million, or $0.60 per share on a diluted basis of 264.6 million shares.  In the year ago period, the Company reported net income attributable to Waste Connections of $150.8 million, or $0.57 per share on a diluted basis of 264.4 million shares. 

* A non-GAAP measure; see accompanying Non-GAAP Reconciliation Schedule

Adjusted net income attributable to Waste Connections* in the third quarter was $192.9 million, or $0.73 per diluted share, versus $181.9 million, or $0.69 per diluted share, in the prior year period.  Adjusted EBITDA* in the third quarter was $443.6 million, as compared to adjusted EBITDA* of $416.8 million in the prior year period.  Adjusted net income attributable to Waste Connections, adjusted net income attributable to Waste Connections per diluted share and adjusted EBITDA, all non-GAAP measures, primarily exclude acquisition-related items, as reflected in the detailed reconciliations in the attached tables.

Nine Months Year to Date Results

For the nine months ended September 30, 2019, revenue was $4.027 billion, as compared to revenue of $3.661 billion in the year ago period.  Operating income, which included $44.7 million in impairment and other items related primarily to the Company's termination of an E&P landfill development project in the Bakken, the termination of certain contracts, and other acquisition-related costs, was $643.6 million, compared to $632.3 million for the same period in 2018, which included $23.9 million of expenses primarily related to fair value accounting changes to certain equity awards, impairments and other items related to the termination of certain contracts and other acquisition-related costs.

Net income attributable to Waste Connections for the nine months ended September 30, 2019, was $433.6 million, or $1.64 per share on a diluted basis of 264.5 million shares.  In the year ago period, the Company reported net income attributable to Waste Connections of $414.4 million, or $1.57 per share on a diluted basis of 264.4 million shares. 

Adjusted net income attributable to Waste Connections* for the nine months ended September 30, 2019, was $538.1 million, or $2.03 per diluted share, compared to $501.1 million, or $1.90 per diluted share, in the year ago period. Adjusted EBITDA* for the nine months ended September 30, 2019, was $1.255 billion, as compared to $1.169 billion in the prior year period. 

Q3 2019 Earnings Conference Call

Waste Connections will be hosting a conference call related to third quarter earnings on October 29th at 8:30 A.M. Eastern Time.  To access the call, listeners should dial 800-734-8582 (within North America) or 212-231-2922 (international) approximately 10 minutes prior to the scheduled start time and ask the operator for the Waste Connections conference call (a passcode is not required).  A replay of the conference call will be available until November 5, 2019 by calling 800-633-8284 (within North America) or 402-977-9140 (international) and entering Passcode # 21930467.  The call will be broadcast live over the Internet through a link on the Company's website at www.wasteconnections.com.  A playback of the call will be available on the Company's website.

Waste Connections will be filing a Form 8-K on EDGAR and on SEDAR (as an "Other" document) prior to markets opening on October 29th, providing the Company's fourth quarter 2019 outlook for revenue, core price plus volume growth for solid waste and adjusted EBITDA*.

* A non-GAAP measure; see accompanying Non-GAAP Reconciliation Schedule

About Waste Connections

Waste Connections is an integrated solid waste services company that provides non-hazardous waste collection, transfer, disposal and recycling services in mostly exclusive and secondary markets in the United States and Canada.  Through its R360 Environmental Solutions subsidiary, Waste Connections is also a leading provider of non-hazardous oilfield waste treatment, recovery and disposal services in several of the most active natural resource producing areas in the United States, including the Permian, Bakken and Eagle Ford Basins.  Waste Connections serves more than seven million residential, commercial, industrial, and exploration and production customers in 42 states in the U.S., and six provinces in Canada.  The Company also provides intermodal services for the rail haul movement of cargo and solid waste containers in the Pacific Northwest.

For more information, visit the Waste Connections web site at www.wasteconnections.com.  Copies of financial literature, including this release, are available on the Waste Connections website or through contacting us directly at (905) 532-7510.  Investors can also obtain these materials and other documents filed with the U.S. Securities and Exchange Commission ("SEC") and the Canadian securities regulators free of charge at the SEC's website, www.sec.gov, and at the System for Electronic Document Analysis and Retrieval maintained by the Canadian Securities Administrators at www.sedar.com.

Safe Harbor and Forward-Looking Information

This press release contains forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995 ("PSLRA"), including "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," "estimate," "continue," "intends" or other words of similar meaning. All of the forward-looking statements included in this press release are made pursuant to the safe harbor provisions of the PSLRA and applicable securities laws in Canada. Forward-looking statements involve risks and uncertainties. Forward-looking statements in this press release include, but are not limited to, statements about expected 2019 and 2020 financial results, outlook and related assumptions, adjusted free cash flow, capital expenditures, potential acquisition activity and return of capital to shareholders. 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 the Company's filings with the SEC 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 press release.  Waste Connections undertakes no obligation to update the forward-looking statements set forth in this press release, whether as a result of new information, future events, or otherwise, unless required by applicable securities laws.

– financial tables attached –

CONTACT:

Mary Anne Whitney / (832) 442-2253
maryannew@wasteconnections.com

 

WASTE CONNECTIONS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF NET INCOME

THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2018 AND 2019

(Unaudited)

(in thousands of U.S. dollars, except share and per share amounts)



Three months ended

September 30,


Nine months ended

September 30,


2018


2019


2018


2019









Revenues

$    1,281,110


$    1,412,444


$ 3,661,209


$ 4,026,719

Operating expenses:








Cost of operations

736,122


835,098


2,120,947


2,384,607

Selling, general and administrative

139,014


137,883


398,582


410,132

Depreciation

148,232


157,994


423,866


461,616

Amortization of intangibles

26,871


31,934


79,444


93,821

Impairments and other operating items

(1,998)


12,935


6,106


32,949

Operating income

232,869


236,600


632,264


643,594









Interest expense

(32,078)


(36,780)


(96,874)


(111,313)

Interest income

1,467


2,056


3,677


7,186

Other income (expense), net

600


(19)


2,053


4,562

Income before income tax provision

202,858


201,857


541,120


544,029









Income tax provision

(52,092)


(42,783)


(126,509)


(110,539)

Net income

150,766


159,074


414,611


433,490

     Plus (Less): Net loss (income) attributable to noncontrolling interests

77


35


(218)


89

Net income attributable to Waste Connections

$      150,843


$      159,109


$     414,393


$     433,579









Earnings per common share attributable to Waste Connections' common shareholders:








Basic

$          0.57


$          0.60


$           1.57


$           1.64

Diluted

$          0.57


$          0.60


$           1.57


$           1.64









Shares used in the per share calculations:








Basic

263,628,838


263,853,681


263,657,274


263,768,258

Diluted

264,394,757


264,587,456


264,376,320


264,473,345

















Cash dividends per common share

$         0.14


$         0.16


$           0.42


$           0.48









 

WASTE CONNECTIONS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(in thousands of U.S. dollars, except share and per share amounts)




December 31,
2018


September 30,
2019

ASSETS







Current assets:







Cash and equivalents


$

319,305


$

303,778

Accounts receivable, net of allowance for doubtful accounts of $16,760 and $15,369 at December 31, 2018 and September 30, 2019, respectively



609,545



676,676

Prepaid expenses and other current assets



164,053



124,836

Total current assets



1,092,903



1,105,290

Restricted cash



84,661



92,050

Restricted investments



47,486



50,602

Property and equipment, net



5,168,996



5,375,166

Operating lease right-of-use assets



-



189,697

Goodwill



5,031,685



5,297,556

Intangible assets, net



1,128,628



1,097,036

Other assets, net



72,970



62,838

      Total assets


$

12,627,329


$

13,270,235

LIABILITIES AND EQUITY







Current liabilities:







Accounts payable


$

359,967


$

428,492

Book overdraft



18,518



20,429

Accrued liabilities



289,544



299,139

Current portion of operating lease liabilities



-



30,162

Current portion of contingent consideration



11,612



12,393

Deferred revenue



179,282



200,677

Current portion of long-term debt and notes payable



1,786



502

      Total current liabilities



860,709



991,794







Long-term portion of debt and notes payable


4,153,465



4,039,405

Long-term portion of operating lease liabilities



-



166,347

Long-term portion of contingent consideration



43,003



44,561

Deferred income taxes



760,033



800,223

Other long-term liabilities



349,931



431,565

      Total liabilities



6,167,141



6,473,895

Commitments and contingencies







Equity:







Common shares: 263,271,302 shares issued and 263,141,413 shares outstanding at December 31, 2018; 263,697,618 shares issued and 263,616,104 shares outstanding at September 30, 2019



4,131,307



4,135,343

Additional paid-in capital



133,577



147,188

Accumulated other comprehensive loss



(74,786)



(61,228)

Treasury shares: 129,889 and 81,514 shares at December 31, 2018 and September 30, 2019, respectively



-



-

Retained earnings



2,264,510



2,569,663

      Total Waste Connections' equity



6,454,608



6,790,966

Noncontrolling interest in subsidiaries



5,580



5,374

      Total equity



6,460,188



6,796,340



$

12,627,329


$

13,270,235








 

WASTE CONNECTIONS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
NINE MONTHS ENDED SEPTEMBER 30, 2018 AND 2019
(Unaudited)
(in thousands of U.S. dollars)



Nine months ended September 30,


2018


2019

Cash flows from operating activities:






Net income

$

414,611


$

433,490

Adjustments to reconcile net income to net cash provided by operating activities:






Loss on disposal of assets and impairments


6,852



31,852

Depreciation


423,866



461,616

Amortization of intangibles


79,444



93,821

Amortization of leases


-



17,661

Deferred income taxes, net of acquisitions


45,765



41,481

Amortization of debt issuance costs


3,087



3,708

Share-based compensation


35,434



35,510

Interest accretion


11,135



12,283

Payment of contingent consideration recorded in earnings


(11)



-

Adjustments to contingent consideration


349



1,466

Other


180



(1,316)

Net change in operating assets and liabilities, net of acquisitions


17,080



53,858

Net cash provided by operating activities


1,037,792



1,185,430







Cash flows from investing activities:






Payments for acquisitions, net of cash acquired


(500,064)



(420,392)

Capital expenditures for property and equipment


(373,512)



(433,526)

Capital expenditure for purchase of greenfield landfill site


-



(31,683)

Proceeds from disposal of assets


3,698



2,626

Change in restricted investments, net of interest income


-



(2,171)

Other


(568)



(526)

Net cash used in investing activities


(870,446)



(885,672)







Cash flows from financing activities:






Proceeds from long-term debt


165,737



1,021,795

Principal payments on notes payable and long-term debt


(387,700)



(1,184,165)

Payment of contingent consideration recorded at acquisition date


(5,459)



(1,621)

Change in book overdraft


(243)



1,911

Payments for repurchase of common shares


(42,040)



-

Payments for cash dividends


(110,447)



(126,348)

Tax withholdings related to net share settlements of equity-based compensation


(14,976)



(17,592)

Debt issuance costs


(2,839)



(5,938)

Proceeds from sale of common shares held in trust


2,381



4,036

Other


(103)



(117)

Net cash used in financing activities


(395,689)



(308,039)

Effect of exchange rate changes on cash, cash equivalents and restricted cash


(528)



143

Net decrease in cash, cash equivalents and restricted cash


(228,871)



(8,138)

Cash, cash equivalents and restricted cash at beginning of period


556,467



403,966

Plus: change in cash held for sale


192



-

Cash, cash equivalents and restricted cash at end of period

$

327,788


$

395,828

ADDITIONAL STATISTICS
(in thousands of U.S. dollars, except where noted)

Solid Waste Internal Growth:  The following table reflects a breakdown of the components of our solid waste internal growth for the three months ended September 30, 2019:



U.S.


Canada


Total

Core Price

4.8%


6.6%


5.1%

Surcharges

0.0%


0.4%


0.1%

Volume

1.0%


0.0%


0.9%

Recycling

(0.8%)


(1.2%)


(0.8%)

Foreign Exchange Impact

-


(1.0%)


(0.2%)

Total

5.0%


4.8%


5.1%








Revenue Breakdown: The following table reflects a breakdown of our revenue for the three month periods ended September 30, 2018 and 2019:


 Three months ended September 30, 2018


 

Revenue


Inter-company
Elimination


Reported

Revenue


%

Solid Waste Collection

$

871,700


$

(2,419)


$

869,281


67.9%

Solid Waste Disposal and Transfer


473,906



(182,617)



291,289


22.7%

Solid Waste Recycling


23,370



(989)



22,381


1.7%

E&P Waste Treatment, Recovery and Disposal


68,049



(3,256)



64,793


5.1%

Intermodal and Other


34,261



(895)



33,366


2.6%

Total

$

1,471,286


$

(190,176)


$

1,281,110


100.0%














Three months ended September 30, 2019


Revenue


Inter-company
Elimination


Reported
Revenue


%

Solid Waste Collection

$

990,790


$

(2,532)


$

988,258


70.0%

Solid Waste Disposal and Transfer


520,218



(202,554)



317,664


22.5%

Solid Waste Recycling


14,142



(394)



13,748


1.0%

E&P Waste Treatment, Recovery and Disposal


70,874



(4,466)



66,408


4.7%

Intermodal and Other


26,520



(154)



26,366


1.8%

Total

$

1,622,544


$

(210,100)


$

1,412,444


100.0%












Contribution from Acquisitions: The following table reflects revenues from acquisitions, net of divestitures, for the three month periods ended September 30, 2018 and 2019:


Three months ended
September 30,


2018


2019

Acquisitions, net

$

48,156


$

77,092







ADDITIONAL STATISTICS (continued)
(in thousands of U.S. dollars, except where noted)

Other Cash Flow Items: The following table reflects cash interest and cash taxes for the three and nine month periods ended September 30, 2018 and 2019:


Three months ended
September 30,



Nine months ended
September 30,


2018


2019



2018


2019

Cash Interest Paid

$

22,556


$

17,358



$

85,042


$

85,616

Cash Taxes Paid


10,509



21,428




33,362



41,960

Debt to Book Capitalization as of September 30, 2019:  37%

Internalization for the three months ended September 30, 2019:  55%

Days Sales Outstanding for the three months ended September 30, 2019:  44 (31 net of deferred revenue)

Share Information for the three months ended September 30, 2019:

Basic shares outstanding

263,853,681

Dilutive effect of equity-based awards 

733,775

Diluted shares outstanding

264,587,456

NON-GAAP RECONCILIATION SCHEDULE
(in thousands of U.S. dollars, except where noted)

Reconciliation of Adjusted EBITDA:

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 Waste Connections' operations.  Waste Connections 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 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.  Waste Connections further adjusts this calculation to exclude the effects of other items management believes impact the ability to assess the operating performance of its 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. 


Three months ended
September 30,


Nine months ended
September 30,


2018


2019


2018


2019

Net income attributable to Waste Connections

$

150,843


$

159,109


$

414,393


$

433,579

Plus (Less): Net income (loss) attributable to noncontrolling interests


(77)



(35)



218



(89)

Plus: Income tax provision


52,092



42,783



126,509



110,539

Plus: Interest expense


32,078



36,780



96,874



111,313

Less: Interest income


(1,467)



(2,056)



(3,677)



(7,186)

Plus: Depreciation and amortization


175,103



189,928



503,310



555,437

Plus: Closure and post-closure accretion


3,253



3,649



9,749



10,821

Plus (Less): Impairments and other operating items


(1,998)



12,935



6,106



32,949

Plus/(Less): Other expense (income), net


(600)



19



(2,053)



(4,562)

Adjustments:












Plus: Transaction-related expenses (a)


323



1,036



4,907



8,057

Plus: Fair value changes to equity awards (b)


6,880



(589)



10,101



3,693

Plus: Integration-related and other expenses (c)


379



-



2,795



-

Adjusted EBITDA

$

416,809


$

443,559


$

1,169,232


$

1,254,551













As % of revenues


32.5%



31.4%



31.9%



31.2%



















(a)

Reflects the addback of acquisition-related transaction costs.

(b) 

Reflects fair value accounting changes associated with certain equity awards.

(c) 

Reflects the addback of integration-related items, including rebranding costs, associated with the Progressive Waste acquisition.

NON-GAAP RECONCILIATION SCHEDULE (continued)
(in thousands of U.S. dollars, except where noted)

Reconciliation of Adjusted Free Cash Flow:

Adjusted free cash flow, a non-GAAP financial measure, is provided supplementally because it is widely used by investors as a valuation and liquidity measure in the solid waste industry.  Management uses adjusted free cash flow as one of the principal measures to evaluate and monitor the ongoing financial performance of Waste Connections' operations.  Waste Connections defines adjusted free cash flow as net cash provided by operating activities, plus or minus change in book overdraft, plus proceeds from disposal of assets, less capital expenditures for property and equipment and distributions to noncontrolling interests.  Waste Connections further adjusts this calculation to exclude the effects of items management believes impact the ability to assess the operating performance of its business.  This measure is not a substitute for, and should be used in conjunction with, GAAP liquidity or financial measures.  Other companies may calculate adjusted free cash flow differently. 



Three months ended
September 30,



Nine months ended

September 30,



2018


2019



2018


2019


Net cash provided by operating activities


$

372,862


$

432,383


$

1,037,792


$

1,185,430

Plus/(Less): Change in book overdraft



888



2,445



(243)



1,911

Plus: Proceeds from disposal of assets



1,624



1,428



3,698



2,626

Less: Capital expenditures for property and equipment



(171,800)



(179,736)



(373,512)



(433,526)

Less: Distributions to noncontrolling interests



-



-



(103)



(117)

Adjustments:













  Payment of contingent consideration recorded in earnings (a)



-



-



11



-

  Cash received for divestitures (b)



(1,250)



-



(1,250)



(2,376)

  Transaction-related expenses (c)



323



1,036



4,907



8,057

  Integration-related and other expenses (d)



379



-



2,794



-

  Pre-existing Progressive Waste share-based grants (e)



309



1,935



5,219



4,306

  Tax effect (f)



(330)



(464)



(3,609)



(3,375)

Adjusted free cash flow


$

203,005


$

259,027


$

675,704


$

762,936














As % of revenues



15.8%



18.3%



18.5%



18.9%






















(a) 

Reflects the addback of acquisition-related payments for contingent consideration that were recorded as expenses in earnings and as a component of cash flows from operating activities as the amounts paid exceeded the fair value of the contingent consideration recorded at the acquisition date.

(b)

Reflects the elimination of cash received in conjunction with the divestiture of certain Progressive Waste operations.

(c)

Reflects the addback of acquisition-related transaction costs.

(d)

Reflects the addback of integration-related items, including rebranding costs, associated with the Progressive Waste acquisition.

(e)

Reflects the cash settlement of pre-existing Progressive Waste share-based awards during the period.

(f)

The aggregate tax effect of footnotes (a) through (e) is calculated based on the applied tax rates for the respective periods.

NON-GAAP RECONCILIATION SCHEDULE (continued)
(in thousands of U.S. dollars, except per share amounts)

Reconciliation of Adjusted Net Income attributable to Waste Connections and Adjusted Net Income per Diluted Share attributable to Waste Connections:

Adjusted net income attributable to Waste Connections and adjusted net income per diluted share attributable to Waste Connections, both non-GAAP financial measures, are provided supplementally because they are widely used by investors as a valuation measure in the solid waste industry.  Management uses adjusted net income attributable to Waste Connections and adjusted net income per diluted share attributable to Waste Connections as one of the principal measures to evaluate and monitor the ongoing financial performance of Waste Connections' operations.  Waste Connections provides adjusted net income attributable to Waste Connections to exclude the effects of items management believes impact the comparability of operating results between periods.  Adjusted net income attributable to Waste Connections has limitations due to the fact that it excludes items that have an impact on the Company's financial condition and results of operations.  Adjusted net income attributable to Waste Connections and adjusted net income per diluted share attributable to Waste Connections are not a substitute for, and should be used in conjunction with, GAAP financial measures.  Other companies may calculate these non-GAAP financial measures differently. 


Three months ended
September 30,


Nine months ended
September 30,


2018


2019


2018


2019

Reported net income attributable to Waste Connections

$

150,843


$

159,109


$

414,393


$

433,579

Adjustments:












Amortization of intangibles (a)


26,871



31,934



79,444



93,821

Impairments and other operating items (b)


(1,998)



12,935



6,106



32,949

Transaction-related expenses (c)


323



1,036



4,907



8,057

Fair value changes to equity awards (d)


6,880



(589)



10,101



3,693

Integration-related and other expenses (e)


379



-



2,795



-

Tax effect (f)


(8,006)



(11,486)



(25,783)



(33,955)

Tax items (g)


6,578



-



9,093



-

Adjusted net income attributable to Waste Connections     

$

181,870


$

192,939


$

501,056


$

538,144


Diluted earnings per common share attributable to Waste Connections' common shareholders:












     Reported net income

$

0.57


$

0.60


$

1.57


$

1.64

Adjusted net income

$

0.69


$

0.73


$

1.90


$

2.03





















(a) 

Reflects the elimination of the non-cash amortization of acquisition-related intangible assets.

(b)

Reflects the addback of impairments and other operating items.

(c)

Reflects the addback of acquisition-related transaction costs.

(d)

Reflects fair value accounting changes associated with certain equity awards.

(e)

Reflects the addback of integration-related items, including rebranding costs, associated with the Progressive Waste acquisition.

(f)

The aggregate tax effect of the adjustments in footnotes (a) through (e) is calculated based on the applied tax rates for the respective periods.

(g)

Primarily reflects refinements to the estimates, as provided by Staff Accounting Bulletin No. 118, of the impact of a portion of the Company's U.S. earnings no longer permanently reinvested in conjunction with the Tax Act.

 

SOURCE Waste Connections, Inc.