NYSE$WCN

Waste Connections Inc · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Waste Connections' first quarter performance was affected by COVID-19, but the company exceeded adjusted EBITDA outlook and delivered adjusted free cash flow of $235.7 million.

Waste Connections reported revenue of $1.352 billion, up 8.7% year-over-year. Net income attributable to Waste Connections was $143.0 million, or $0.54 per share. Adjusted net income was $170.6 million, or $0.65 per share. Adjusted EBITDA was $408.5 million, representing 30.2% of revenue. Adjusted free cash flow was $235.7 million, or 17.4% of revenue.

  • Revenue increased by 8.7% to $1.352 billion.
  • Net income attributable to Waste Connections was $143.0 million, or $0.54 per share.
  • Adjusted net income attributable to Waste Connections was $170.6 million, or $0.65 per share.
  • Adjusted free cash flow was $235.7 million, or 17.4% of revenue.

Headline financials

Total Revenue

$1.35B

Previous: $1.24B+8.7%
EPS (adj)

$0.65

Previous: $0.62+4.8%
Core Price Growth

5.5%

No prior period
Volume

-0.4%

No prior period
Recycling

-0.4%

No prior period
Total Internal Growth

4.7%

No prior period
Capital Expenditures

-$138M

Previous: $114M-220.6%
Free Cash Flow

$5.25M

Previous: $126M-95.8%
Net Income

$143M

Previous: $126M+13.9%
Operating Income

$217M

Previous: $185M+17.4%
Gross Profit

$537M

Previous: $511M+5.1%
Cash & Equivalents

$1.2B

Previous: $499M+139.3%
Total Assets

$14.3B

Previous: $12.9B+10.4%
Stock-Based Comp

$13M

Previous: $15.2M-14.0%

Revenue & EPS history

Waste Connections · Revenue · Quarterly

$1.35B

Q1 2020+8.7%vs Q1 2019
Beat estimate in 16 of 16 quarters(100%)
ActualEstimate

Revenue by segment

Waste Connections · $2.06B total across 5 segments · Q3 2023

  • Solid Waste Collection
    $1.51B+10.5%
  • Disposal & Transfer
    $418M+12.7%
  • E&P Waste
    $58.5M+10.4%
  • Intermodal & Other
    $44.9M-1.4%
  • Solid Waste Recycling
    $35.1M-23.5%

Forward guidance

The financial impact of the COVID-19 outbreak and the pace of recovery remain uncertain. However, assuming that April reflects the depths of any impact, the company is encouraged that revenue on a reported basis for the month declined 6.0% year-over-year, or 1.4% excluding Canada and the Northeast U.S., which were hardest hit.

Tailwinds

  • Solid waste trends have improved sequentially late in the month and into early May.
  • A continuing economic recovery should reduce the revenue impact going forward.
  • An approximate 20% reduction in budgeted capital expenditures for the year will help offset a portion of the high margin decremental and flow thru associated with pandemic-related decreases in commercial collection activity.
  • Cost controls will help offset a portion of the high margin decremental and flow thru associated with pandemic-related decreases in commercial collection activity.
  • Cost controls will help offset a portion of the high margin decremental and flow thru associated with transfer and landfill volumes and a reduction in E&P waste activity.

Headwinds

  • The severity and duration of varying impacts across markets remains uncertain.
  • The shape of any economic recovery remains uncertain.
  • Any additional acquisitions completed during the year will influence the extent to which results are impacted.
  • The ultimate impact of the COVID-19 outbreak on our business, results of operations, financial condition and cash flows will depend largely on future developments.
  • How quickly and to what extent normal economic and operating conditions can resume is uncertain.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

+0.4%

Avg return

Earnings day

+0.9%

Avg return

5 days after

+2.3%

Avg return

30 days after

57%

37 / 65 earnings

Positive

+8.1%

Q1 2026

Best reaction

-8.2%

Q4 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+8.1%+4.5%-0.6%
Q4 2025-8.2%-6.1%-3.0%
Q3 2025+2.7%+0.6%+0.9%
Q2 2025+0.0%+0.6%-4.7%
Q1 2025+0.5%-0.1%+0.6%
Q4 2024-0.6%-1.2%-2.5%
Q3 2024-1.5%-2.4%+4.7%
Q2 2024-2.9%-2.7%+3.2%
Q1 2024-0.6%-0.9%-0.4%
Q4 2023+6.3%+8.7%+9.6%
Q3 2023-4.8%-3.4%-0.8%
Q2 2023-1.5%+0.2%-2.5%
Q1 2023-3.1%-1.5%-2.0%
Q4 2022+1.2%+1.1%-0.2%
Q3 2022+5.8%+6.5%+11.1%
Q2 2022+2.7%+4.7%+5.5%
Q1 2022-2.5%-5.8%-3.2%
Q4 2021+0.7%+1.2%+15.5%
Q3 2021+0.5%+3.0%+1.6%
Q2 2021-1.2%-1.8%+2.9%
Q1 2021+1.3%+2.8%+3.8%
Q4 2020+1.3%+0.4%+4.6%
Q3 2020-2.7%-1.9%+2.8%
Q2 2020+0.7%-1.6%-2.0%
Q1 2020+5.3%+7.2%+12.6%
Q4 2019+3.1%+4.1%-11.0%
Q3 2019+1.1%+0.7%-0.1%
Q2 2019-3.3%-5.0%-3.8%
Q1 2019+2.1%+3.3%+6.0%
Q4 2018-4.6%-2.5%-0.6%
Q3 2018+3.5%+1.8%+7.9%
Q2 2018+1.7%+0.8%+1.6%
Q1 2018+2.2%+4.1%+8.2%
Q4 2017+0.7%+3.6%+7.3%
Q3 2017+2.7%+1.2%-2.0%
Q2 2017+3.3%+1.8%+1.3%
Q1 2017+2.8%+2.0%+4.6%
Q4 2016+3.7%+4.5%+3.9%
Q3 2016-1.7%-0.1%+3.0%
Q2 2016+3.2%+5.0%+6.8%
Q1 2016+3.4%
Q4 2015-1.4%
Q3 2015-4.0%
Q2 2015+2.1%
Q1 2015-0.1%
Q4 2014-1.5%
Q3 2014+2.2%
Q2 2014+1.1%
Q1 2014-0.0%
Q4 2013+0.9%
Q3 2013-2.3%
Q2 2013-0.6%
Q1 2013+3.9%
Q4 2012-2.7%
Q3 2012-3.4%
Q1 2012+2.0%
Q2 2012+2.0%
Q4 2010+1.3%
Q4 2011+1.3%
Q3 2011-5.4%
Q2 2011-0.6%
Q1 2011-3.4%
Q3 2010-2.9%
Q2 2010+6.9%
Q1 2010-1.1%

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