Stericycle reports second quarter results – Waste Today
Waste Connections Inc., Ontario, reported second quarter results on August 4.
Highlights of the results include:
- the continued momentum of rising prices and volumes of solid waste, as well as favorable winds related to the rise in the value of recovered raw materials, generated disproportionate results and increased the outlook for the company overall of the year ;
- revenue of $ 1.53 billion, up 17.5% year-over-year;
- 11.4% of the solid waste price plus volume growth, beating the outlook;
- net income of $ 177 million and adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $ 484.9 million, or 31.6% of revenue, exceeding the company’s outlook and up 140 basis points year over year;
- net income and adjusted net income of 68 cents and 81 cents per share, respectively;
- net cash from operating activities of $ 848.5 million and adjusted free cash flow of $ 585.8 million, 20 percent of revenue and up 18.5 percent year on year on the other ; and
- revenue outlook of approximately $ 5.98 billion for fiscal 2021, net profit of approximately $ 690 million, adjusted EBITDA of approximately $ 1.88 billion, net cash generated from operations of Operating of approximately $ 1.67 billion and Adjusted Free Cash Flow of approximately $ 1 billion.
“Full-scale strength resulted in a widespread beating in the second quarter, which allows us to raise our outlook for the full year. Revenue and adjusted EBITDA in Q2 increased by 17.5% and 23%, respectively, compared to the previous year, mainly due to the continued improvement in solid waste prices and growth in volumes and the strength of values recovered from raw materials. These trends resulted in a 110 basis point increase in year-to-date Adjusted EBITDA margin and adjusted free cash flow of over $ 585 million, up 18.5% from a year-to-date year over year, ”said Worthing F. Jackman, President and CEO of Waste Connections. “Given the strength of our results in the first half of the year and the continued momentum and expansion of margins expected from these trends, we believe we are on track to report revenue of approximately $ 5.975 billion and $ 1.875 billion adjusted EBITDA in 2021, exceeding our initial guidance provided in February. More importantly, Full Year Adjusted Free Cash Flow also exceeds initial expectations and is now estimated at approximately $ 1 billion, or 53% of Adjusted EBITDA.
“2021 also has the potential to be another disproportionate year of acquisition activity. Since the start of the year, we have signed or closed 14 acquisitions with total annualized revenue of approximately $ 115 million. , including $ 75 million in franchise operations in California, Nevada and Oregon later this year, ”continues Jackman. “We continue to see record amounts of seller interest resulting in a high acquisition dialogue and, as we communicated throughout the year, we expect the closings related to most of this activity are weighted more in the second half of the year. Our recently expanded credit facility and continued strength in our balance sheet provide the flexibility to fund outsized acquisition activity as well as increasing return of capital to shareholders. “
Q2 2021 results
Second-quarter revenue totaled $ 1.53 billion, up from $ 1.31 billion a year earlier. Operating income was $ 266.8 million, which included $ 6.4 million of accounting changes in the fair value of stock awards and $ 6.1 million of write-downs and other items. operation. This compares to an operating loss of $ 232.4 million in the second quarter of 2020, which included $ 437.3 million of write-downs primarily related to a decrease in property, plant and equipment at certain landfills of exploration and mining waste. oil and gas production, or E&P. Second quarter net income was $ 177 million, or 68 cents per share on a diluted basis of 261.4 million shares. During the period last year, the company reported a net loss of $ 227.1 million, or 86 cents per share on a diluted basis of 263 million shares.
Adjusted second quarter net income was $ 210.9 million, or 81 cents per diluted share, compared to $ 158 million, or 60 cents per diluted share, in the prior year period. Second Quarter Adjusted EBITDA was $ 484.9 million, or 31.6% of revenue, compared to $ 394.3 million and 30.2% of revenue for the year former. Adjusted net income, adjusted net income per diluted share and adjusted EBITDA mainly exclude impairment and acquisition-related items.
Results since the start of the year
For the six-month period ended June 30, revenue was $ 2.93 billion, up from $ 2.66 billion a year earlier. Operating income, which included $ 7.3 million primarily related to accounting changes in the fair value of stock awards and $ 6.7 million of impairments and other operating items, amounted to 505 , $ 2 million compared to an operating loss of $ 15.4 million for the same period in 2020, which included $ 445.2 million primarily related to impairments and other operating items.
Net income for the six months ended June 30 was $ 337.4 million, or $ 1.29 per share on a diluted basis of 262.3 million shares. During the period last year, the company reported a net loss of $ 84 million, or 32 cents per share on a diluted basis of 263.4 million shares.
Adjusted net income for the six-month period ended June 30 was $ 396.3 million, or $ 1.51 per diluted share, compared to $ 328.5 million, or $ 1.25 per diluted share, as of during the period of the previous year. Adjusted EBITDA for the six-month period ended June 30 was $ 918.1 million and 31.3% of revenue, compared to $ 802.8 million and 30.2% for the period. last year.
Updated outlook for 2021
Waste Connections has also updated its outlook for 2021, which assumes no changes in the current economic environment or underlying economic trends, including due or in relation to the impacts of the COVID-19 pandemic or the Delta variant of the coronavirus. The outlook for the company excludes any impact of additional acquisitions that may be completed during the year and the expensing of transaction-related items.
- Revenue is estimated to be around $ 5.98 billion compared to the initial revenue outlook of around $ 5.8 billion.
- Net income is estimated to be approximately $ 690 million and Adjusted EBITDA is estimated to be approximately $ 1.88 billion, or approximately 31.4% of revenue, compared to the initial outlook for Adjusted EBITDA for the year. $ 1.8 billion company, or 31% of revenue.
- Capital expenditures are estimated to be approximately $ 675 million, compared to its initial capital expenditure outlook of approximately $ 625 million.
- Free cash flow from operating activities is estimated to be approximately $ 1.67 billion from its original outlook of $ 1.58 billion, and adjusted free cash flow is estimated to be approximately $ 1 billion. dollars, or approximately 16.7% of sales, compared to the Company’s original adjusted free cash flow. cash flow outlook of approximately $ 950 million, or 16.4% of sales.