Q4 2023 Results
Revenue in the fourth quarter totaled $2.036 billion, up from $1.869 billion in the year ago period. Operating income was $224.5 million, which included $169.6 million in impairments primarily associated with adjustments to landfill closure and post-closure costs and $2.9 million primarily associated with transaction-related expenses. This compares to operating income of $312.0 million in the fourth quarter of 2022, which included $4.7 million primarily in transaction-related expenses. Net income in the fourth quarter was $126.8 million, or $0.49 per share on a diluted basis of 258.3 million shares. In the year ago period, the Company reported net income of $194.4 million, or $0.75 per share on a diluted basis of 258.0 million shares.
Adjusted net income(b) in the fourth quarter was $285.5 million, or $1.11 per diluted share, up from $229.8 million, or $0.89 per diluted share, in the prior year period. Adjusted EBITDA(b) in the fourth quarter was $656.0 million, as compared to $563.6 million in the prior year period. Adjusted net income, adjusted net income per diluted share and adjusted EBITDA, all non-GAAP measures, primarily exclude impairments and transaction-related items, as reflected in the detailed reconciliations in the attached tables.
Full Year 2023 Results
For the year ended December 31, 2023, revenue was $8.022 billion, up from $7.212 billion in the year ago period. Operating income was $1.236 billion, which included $238.8 million primarily related to adjustments associated with landfill closure and post-closure costs and other impairments, $10.7 million associated with transaction-related expenses and $14.4 million primarily related to executive separation costs and fair value changes to equity awards. In the year ago period, operating income was $1.242 billion, which included $43.2 million primarily attributable to transaction-related expenses and impairments and other operating items.
Net income for the year ended December 31, 2023 was $762.8 million, or $2.95 per share on a diluted basis of 258.1 million shares. In the year ago period, the Company reported net income of $835.7 million, or $3.24 per share on a diluted basis of 258.0 million shares.
Adjusted net income(b) for the year ended December 31, 2023 was $1.081 billion, or $4.19 per diluted share, as compared to $985.3 million, or $3.82 per diluted share, in the year ago period. Adjusted EBITDA(b) for the year ended December 31, 2023 was $2.523 billion, up from $2.221 billion in the prior year period.
2024 Outlook
Waste Connections also announced its outlook for 2024, which assumes no change in the current economic environment. The Company’s outlook excludes any impact from additional acquisitions that may close during the year, and expensing of transaction-related items. The outlook provided below is forward looking, and actual results may differ materially depending on risks and uncertainties detailed at the end of this release and in our periodic filings with the U.S. Securities and Exchange Commission and the securities commissions or similar regulatory authorities in Canada. Certain components of the outlook for 2024 are subject to quarterly fluctuations. See reconciliations in the attached tables.
- | Revenue is estimated at approximately $8.750 billion; |
- | Net income is estimated at approximately $1.096 billion; |
- | Adjusted EBITDA(b) is estimated at approximately $2.860 billion and 32.7% of revenue, up 120 basis points year over year; |
- | Net cash provided by operating activities is estimated at approximately $2.350 billion; |
- | Capital expenditures are estimated at $1.150 billion, including $150 million for Renewable Natural Gas (RNG) facilities; and |
- | Adjusted free cash flow(b) is estimated at $1.200 billion, including $150 million in RNG-related capex and $75 million in closure-related outlays at the Chiquita Canyon Landfill; adjusted free cash flow(b) normalized for RNG and Chiquita outlays is estimated at $1.425 billion. |
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(a) All references to "Net income" refer to the financial statement line item "Net income attributable to Waste Connections".
(b) A non-GAAP measure; see accompanying Non-GAAP Reconciliation Schedule.