Brief Overview on Company’s Performance: Waste Connections (NYSE: WCN)

On Friday, Shares of Waste Connections (NYSE: WCN) rose 1.14% to $75.54. The stock traded total volume of 632,457 shares lower than the average volume of 833.21K shares.

Waste Connections, Inc. (NYSE: WCN) recently declared its results for the third quarter of 2018.

Q3 2018 Results

Revenue in the third quarter totaled $1.281B, up from $1.206B in the year ago period.  Operating income was $232.90M, which included $6.90M in fair value accounting changes associated with certain equity awards, and $0.70M in integration and acquisition-related costs, partially offset by a $2.00M gain in impairments and other items mainly related to the divestiture of certain assets attained in the Progressive Waste acquisition.  This compares to operating income of $218.80M in the third quarter of 2017, which included $7.20M in charges mainly related to fair value accounting changes for certain equity awards, costs for transactions accomplished in the period, and certain costs associated with the Progressive Waste acquisition.

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

Net income attributable to Waste Connections in the third quarter was $150.80M, or $0.57 per share on a diluted basis of 264.40M shares.  In the year ago period, the Company stated net income attributable to Waste Connections of $123.20M, or $0.47per share on a diluted basis of 264.30M shares.

Adjusted net income attributable to Waste Connections in the third quarter was $181.90M, or $0.69 per diluted share, as compared to $158.10M, or $0.60 per diluted share, in the prior year period.  Adjusted EBITDA in the third quarter was $416.80M, as contrast to adjusted EBITDA of $393.40M in the prior year period.

Nine Months Year to Date Results

For the nine months ended September 30, 2018, revenue was $3.661B, as contrast to revenue of $3.473B in the year ago period.  Operating income, which included $23.90M of expenses mainly 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, was $632.30M, contrast to $452.10M for the same period in 2017, which included $167.00M of expenses mainly related to both goodwill impairment against the Company’s E&P segment resulting from the early adoption of FASB’s recent accounting pronouncement simplifying the test for goodwill impairment and fair value accounting changes to certain equity awards.

Net income attributable to Waste Connections for the nine months ended September 30, 2018, was $414.40M, or $1.57 per share on a diluted basis of 264.40M shares.  In the year ago period, the Company stated net income attributable to Waste Connections of $261.70M, or $0.99 per share on a diluted basis of 264.10M shares.

Adjusted net income attributable to Waste Connections for the nine months ended September 30, 2018, was $501.10M, or $1.90 per diluted share, contrast to $433.60M, or $1.64 per diluted share, in the year ago period. Adjusted EBITDA for the nine months ended September 30, 2018, was $1.169B, as contrast to $1.100B in the prior year period.

WCN has the market capitalization of $19.91B and its EPS growth ratio for the past five years was 0.70%. The return on assets ratio of the Company was 6.10% while its return on investment ratio stands at 4.20%. Price to sales ratio was 4.13 while 70.30% of the stock was owned by institutional investors.

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