TORONTO, July 9, 2020 /CNW/ -- Waste Connections,
Inc. (TSX/NYSE: WCN) ("Waste Connections" or the "Company")
announced that it will report financial results for the second
quarter of 2020 after the close of the stock market on August 6, 2020. The Company also provided
commentary on the current operating environment.
"We are extremely encouraged by the signs of continuing recovery
in solid waste activity, as revenue and adjusted EBITDA* in the
second quarter are expected to exceed the preliminary thoughts we
provided in early May based on April results. Reported
revenue, which was originally expected to be down approximately
6.0%, is now expected to be down approximately 4.7% year over year
and adjusted EBITDA* margin, originally expected to be down
approximately 200 basis points, is now expected to be down between
90 basis points and 100 basis points year over year. The
improving solid waste trends we noted in May continued throughout
the quarter, driving better than expected results in solid waste
collection, transfer and disposal. Such solid waste revenue on a
same store basis in the second quarter is now expected to be down
approximately 5.3% year over year, or down just 1.3% excluding
Canada and the Northeast U.S.,
with the associated adjusted EBITDA* margin up year over year
in spite of the impact of incremental COVID-19-related costs," said
Worthing F. Jackman, President and
CEO.
Mr. Jackman added, "High flow through from sequential
improvements in solid waste commercial collection activity and
landfill volumes set us up for a higher jumping off point for the
balance of the year. We look forward to updating our full
year 2020 outlook on our upcoming call to reflect both the benefit
of July results and the expected contribution from recently
completed solid waste acquisitions in Washington and Iowa/Nebraska
totaling approximately $50 million in
annualized revenues."
The Company also noted, as further described in its Form 10-Q
for the quarterly period ended March 31,
2020, the potential for the recognition of impairment
charges on its property and equipment and non-goodwill intangible
assets associated with its exploration and production ("E&P")
segment. At such time and to the extent that the Company were
to make a determination that the outlook for future oil prices and
demand for the Company's E&P waste services did not show
sufficient improvement, this could result in the recognition of
impairment charges. As of March 31,
2020, the Company's E&P segment had $832.7 million in property and equipment and
$59.6 million of non-goodwill
intangible assets, including $376.1
million of property and equipment and $2.4 million of non-goodwill intangible assets in
the Williston Basin and $62.9 million
of property and equipment in the Eagle Ford Basin. The
Williston and Eagle Ford Basins have experienced a higher
proportion of decline in demand for E&P waste services due to
the higher cost of exploration and production in those areas
relative to other basins.
As also described in its Form 10-Q for the quarterly period
ended March 31, 2020, the Company
noted the finalization of the tax regulations on April 7, 2020 under Internal Revenue Code section
267A, which would result in an estimated additional income tax
expense related to 2019 of $27.4
million, or an estimated $0.10
per share impact, to be included in the Company's quarterly
reporting period ended June 30,
2020.
*Adjusted EBITDA, a non-GAAP financial measure, 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 (loss)
attributable to Waste Connections, plus or minus net income (loss)
attributable to noncontrolling interests, plus (less) income tax
provision (benefit), 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.
Q2 2020 Earnings Conference Call
Waste Connections will be hosting an investor conference call
related to second quarter earnings on August
7th at 8:30 A.M. Eastern
Time. To access the call, listeners should dial
800-747-0367 (within North
America) or 212-231-2915 (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 August 14, 2020, by calling
800-633-8284 (within North
America) or 402-977-9140 (international) and entering
Passcode #21964629.
The call will also be broadcast live over the Internet through a
link on our website at www.wasteconnections.com. A
playback of the call will be available on our website. Copies
of financial literature, including this release, are available on
the Waste Connections website at
www.wasteconnections.com or by contacting us directly
at 832-442-2200.
Waste Connections also announced that executives of the Company
currently plan on presenting at the following events during the
third quarter of 2020:
August 10th
Stifel Investor Summit
August
25th/26th
Raymond
James Diversified Industrials Conference
The Company will post any presentation slides on its website at
www.wasteconnections.com under the tabs titled Investor
Presentations and Investor Relations. The slides will be
posted during the 24-hour period prior to the scheduled
presentation time.
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 U.S. 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 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 can be
identified by use of forward-looking terminology, such as
"believes," "expects," "intends," "may," "might," "will," "could,"
"should," or "anticipates," or the negative thereof or comparable
terminology, or by the discussions of strategy. 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 operating trends, expected
financial results, 2020 outlook and related assumptions, including
the expected impacts of the novel coronavirus pandemic and the
COVID-19 outbreak, and expected acquisition contribution. 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.
CONTACT:
|
|
Mary Anne Whitney /
(832)
442-2253
|
Joe Box / (281)
873-3205
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maryannew@wasteconnections.com
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joe.box@wasteconnections.com
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SOURCE Waste Connections, Inc.