WASTE CONNECTIONS REPORTS FOURTH QUARTER 2023 RESULTS AND PROVIDES 2024 OUTLOOK
Fourth Quarter Highlights
-
Revenue of
$2.036 billion , up 8.9% year over year -
Net income(a) of
$126.8 million , and adjusted EBITDA(b) of$656.0 million , up 16.4% year over year - Adjusted EBITDA(b) margin of 32.2% of revenue, up 200 basis points year over year
- Momentum from accelerating margin expansion and acquisition activity sets up 2024 for outsized growth
Full Year 2023 Highlights
-
Revenue of
$8.022 billion , up 11.2% year over year -
Net income of
$762.8 million , and adjusted net income(b) of$1.081 billion -
Adjusted EBITDA(b) of
$2.523 billion , up 13.6%, and 31.5% of revenue, up 70 basis points year over year -
Net cash provided by operating activities of
$2.127 billion and adjusted free cash flow(b) of$1.224 billion -
Completes acquisitions with approximately
$215 million of total annualized revenue in 2023
Expectations for 2024
- Adjusted EBITDA growth of over 13%
- Outsized adjusted EBITDA(b) margin expansion of 120 basis points, or 32.7%
- Revenue contribution of approximately 4% from acquisitions already completed
- Additional acquisitions, further increases in values for recovered commodities or reduction of inflationary pressures to provide upside to 2024 outlook
"Adjusted EBITDA(b) margin expansion of 200 basis points in Q4 capped off a remarkable year for
"Looking at our differentiated results during the full year 2023, we delivered 70 basis points adjusted EBITDA(b) margin expansion after overcoming 60 basis points in headwinds from recovered commodity values to report industry-leading margin of 31.5%. Double-digit growth in both revenue and adjusted EBITDA(b) from price-led organic solid waste growth and outsized acquisition contribution, along with disciplined execution and focus on quality of revenue, drove adjusted free cash flow(b) of
Mr. Mittelstatedt concluded, "We are extremely pleased by our 2023 results and our positioning for outsized growth in 2024. We applaud the resilience of our 23,000 dedicated employees who enabled us to deliver on our commitments and once again drive industry-leading results. Their efforts have already positioned us for 120 basis points adjusted EBITDA(b) margin expansion in 2024 on approaching double-digit revenue growth, with upside from continued improvement in recovered commodity values or inflationary pressures, as well as any additional acquisition activity."
Q4 2023 Results
Revenue in the fourth quarter totaled
Adjusted net income(b) in the fourth quarter was
Full Year 2023 Results
For the year ended
Net income for the year ended
Adjusted net income(b) for the year ended
2024 Outlook
- 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 forRenewable 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 theChiquita Canyon Landfill ; adjusted free cash flow(b) normalized for RNG and Chiquita outlays is estimated at$1.425 billion .
----------------------------------------------------------------------------------------------------------------------------------------------------------------- |
(a)
All references to "Net income" refer to the financial statement line item "Net income attributable to |
(b) A non-GAAP measure; see accompanying Non-GAAP Reconciliation Schedule. |
Q4 2023 Earnings Conference Call
About
Safe Harbor and Forward-Looking Information
This press release contains forward-looking statements within the meaning of the safe harbor provisions of the
– financial tables attached –
CONTACT: |
|
|
|
CONDENSED CONSOLIDATED STATEMENTS OF NET INCOME
THREE AND TWELVE MONTHS ENDED (Unaudited)
(in thousands of |
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
Twelve months ended |
|
||||||||
|
|
2022 |
|
2023 |
|
2022 |
|
2023 |
|
||||
|
|
|
|
|
|
|
|
|
|
||||
Revenues |
|
$ |
1,869,302 |
|
$ |
2,035,609 |
|
$ |
7,211,859 |
|
$ |
8,021,951 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of operations |
|
|
1,137,973 |
|
|
1,195,620 |
|
|
4,336,012 |
|
|
4,744,513 |
|
Selling, general and administrative |
|
|
177,763 |
|
|
192,752 |
|
|
696,467 |
|
|
799,119 |
|
Depreciation |
|
|
201,111 |
|
|
213,291 |
|
|
763,285 |
|
|
845,638 |
|
Amortization of intangibles |
|
|
41,719 |
|
|
39,833 |
|
|
155,675 |
|
|
157,573 |
|
Impairments and other operating items |
|
|
(1,237) |
|
|
169,595 |
|
|
18,230 |
|
|
238,796 |
|
Operating income |
|
|
311,973 |
|
|
224,518 |
|
|
1,242,190 |
|
|
1,236,312 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
(64,766) |
|
|
(69,728) |
|
|
(202,331) |
|
|
(274,642) |
|
Interest income |
|
|
3,376 |
|
|
2,464 |
|
|
5,950 |
|
|
9,350 |
|
Other income, net |
|
|
781 |
|
|
4,135 |
|
|
3,154 |
|
|
12,481 |
|
Income before income tax provision |
|
|
251,364 |
|
|
161,389 |
|
|
1,048,963 |
|
|
983,501 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax provision |
|
|
(57,063) |
|
|
(34,760) |
|
|
(212,962) |
|
|
(220,675) |
|
Net income |
|
|
194,301 |
|
|
126,629 |
|
|
836,001 |
|
|
762,826 |
|
Plus/(less): Net loss (income) attributable to noncontrolling interests |
|
|
51 |
|
|
124 |
|
|
(339) |
|
|
(26) |
|
Net income attributable to |
|
$ |
194,352 |
|
$ |
126,753 |
|
$ |
835,662 |
|
$ |
762,800 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share attributable to |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.76 |
|
$ |
0.49 |
|
$ |
3.25 |
|
$ |
2.96 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted |
|
$ |
0.75 |
|
$ |
0.49 |
|
$ |
3.24 |
|
$ |
2.95 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in the per share calculations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
257,219,843 |
|
|
257,636,137 |
|
|
257,383,578 |
|
|
257,551,129 |
|
Diluted |
|
|
257,974,749 |
|
|
258,303,370 |
|
|
258,038,801 |
|
|
258,149,244 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends per common share |
|
$ |
0.255 |
|
$ |
0.285 |
|
$ |
0.945 |
|
$ |
1.05 |
|
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(in thousands of |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
ASSETS |
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
Cash and equivalents |
|
$ |
78,637 |
|
$ |
78,399 |
|
Accounts receivable, net of allowance for credit losses of |
|
|
833,862 |
|
|
856,953 |
|
Prepaid expenses and other current assets |
|
|
205,146 |
|
|
206,433 |
|
Total current assets |
|
|
1,117,645 |
|
|
1,141,785 |
|
|
|
|
|
|
|
|
|
Restricted cash |
|
|
102,727 |
|
|
105,639 |
|
Restricted investments |
|
|
68,099 |
|
|
70,350 |
|
Property and equipment, net |
|
|
6,950,915 |
|
|
7,228,331 |
|
Operating lease right-of-use assets |
|
|
192,506 |
|
|
261,782 |
|
|
|
|
6,902,297 |
|
|
7,404,400 |
|
Intangible assets, net |
|
|
1,673,917 |
|
|
1,603,541 |
|
Other assets, net |
|
|
126,497 |
|
|
100,048 |
|
Total assets |
|
$ |
17,134,603 |
|
$ |
17,915,876 |
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
Accounts payable |
|
$ |
638,728 |
|
$ |
642,455 |
|
Book overdraft |
|
|
15,645 |
|
|
14,855 |
|
Deferred revenue |
|
|
325,002 |
|
|
355,203 |
|
Accrued liabilities |
|
|
431,247 |
|
|
521,428 |
|
Current portion of operating lease liabilities |
|
|
35,170 |
|
|
32,533 |
|
Current portion of contingent consideration |
|
|
60,092 |
|
|
94,996 |
|
Current portion of long-term debt and notes payable |
|
|
6,759 |
|
|
26,462 |
|
Total current liabilities |
|
|
1,512,643 |
|
|
1,687,932 |
|
|
|
|
|
|
|
|
|
Long-term portion of debt and notes payable |
|
|
6,890,149 |
|
|
6,724,771 |
|
Long-term portion of operating lease liabilities |
|
|
165,462 |
|
|
238,440 |
|
Long-term portion of contingent consideration |
|
|
21,323 |
|
|
20,034 |
|
Deferred income taxes |
|
|
1,013,742 |
|
|
1,022,480 |
|
Other long-term liabilities |
|
|
417,640 |
|
|
524,438 |
|
Total liabilities |
|
|
10,020,959 |
|
|
10,218,095 |
|
Commitments and contingencies |
|
|
|
|
|
|
|
Equity: |
|
|
|
|
|
|
|
Common shares: 257,211,175 shares issued and 257,145,716 shares outstanding at |
|
|
3,271,958 |
|
|
3,276,661 |
|
Additional paid-in capital |
|
|
244,076 |
|
|
284,284 |
|
Accumulated other comprehensive loss |
|
|
(56,830) |
|
|
(9,826) |
|
|
|
|
- |
|
|
- |
|
Retained earnings |
|
|
3,649,494 |
|
|
4,141,690 |
|
Total |
|
|
7,108,698 |
|
|
7,692,809 |
|
Noncontrolling interest in subsidiaries |
|
|
4,946 |
|
|
4,972 |
|
Total equity |
|
|
7,113,644 |
|
|
7,697,781 |
|
Total liabilities and equity |
|
$ |
17,134,603 |
|
$ |
17,915,876 |
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
TWELVE MONTHS ENDED (Unaudited)
(in thousands of |
|
||||||
|
|
|
|
|
|
|
|
|
|
Twelve months ended December 31, |
|
||||
|
|
2022 |
|
2023 |
|
||
Cash flows from operating activities: |
|
|
|
|
|
|
|
Net income |
|
$ |
836,001 |
|
$ |
762,826 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
|
Loss on disposal of assets and impairments |
|
|
9,519 |
|
|
38,877 |
|
Adjustment to closure and post-closure liabilities |
|
|
- |
|
|
159,547 |
|
Depreciation |
|
|
763,285 |
|
|
845,638 |
|
Amortization of intangibles |
|
|
155,675 |
|
|
157,573 |
|
Deferred income taxes, net of acquisitions |
|
|
93,481 |
|
|
6,329 |
|
Current period provision for expected credit losses |
|
|
17,353 |
|
|
17,430 |
|
Amortization of debt issuance costs |
|
|
5,454 |
|
|
6,483 |
|
Share-based compensation |
|
|
63,485 |
|
|
70,436 |
|
Interest accretion |
|
|
17,668 |
|
|
22,720 |
|
Payment of contingent consideration recorded in earnings |
|
|
(2,982) |
|
|
- |
|
Adjustments to contingent consideration |
|
|
(1,030) |
|
|
30,367 |
|
Other |
|
|
(8,217) |
|
|
(3,943) |
|
Net change in operating assets and liabilities, net of acquisitions |
|
|
72,800 |
|
|
12,534 |
|
Net cash provided by operating activities |
|
|
2,022,492 |
|
|
2,126,817 |
|
|
|
|
|
|
|
|
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
Payments for acquisitions, net of cash acquired |
|
|
(2,206,901) |
|
|
(676,793) |
|
Capital expenditures for property and equipment |
|
|
(912,677) |
|
|
(934,000) |
|
Proceeds from disposal of assets |
|
|
30,676 |
|
|
31,581 |
|
Other |
|
|
1,731 |
|
|
(1,867) |
|
Net cash used in investing activities |
|
|
(3,087,171) |
|
|
(1,581,079) |
|
|
|
|
|
|
|
|
|
Cash flows from financing activities: |
|
|
|
|
|
|
|
Proceeds from long-term debt |
|
|
4,816,146 |
|
|
1,818,765 |
|
Principal payments on notes payable and long-term debt |
|
|
(3,073,985) |
|
|
(2,052,153) |
|
Payment of contingent consideration recorded at acquisition date |
|
|
(16,911) |
|
|
(13,317) |
|
Change in book overdraft |
|
|
(1,076) |
|
|
(790) |
|
Payments for repurchase of common shares |
|
|
(424,999) |
|
|
- |
|
Payments for cash dividends |
|
|
(243,013) |
|
|
(270,604) |
|
Tax withholdings related to net share settlements of equity-based compensation |
|
|
(18,358) |
|
|
(31,009) |
|
Debt issuance costs |
|
|
(13,271) |
|
|
- |
|
Proceeds from issuance of shares under employee share purchase plan |
|
|
3,270 |
|
|
3,909 |
|
Proceeds from sale of common shares held in trust |
|
|
660 |
|
|
794 |
|
Net cash provided by (used in) financing activities |
|
|
1,028,463 |
|
|
(544,405) |
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash, cash equivalents and restricted cash |
|
|
(2,035) |
|
|
1,341 |
|
|
|
|
|
|
|
|
|
Net increase (decrease) in cash, cash equivalents and restricted cash |
|
|
(38,251) |
|
|
2,674 |
|
Cash, cash equivalents and restricted cash at beginning of year |
|
|
219,615 |
|
|
181,364 |
|
Cash, cash equivalents and restricted cash at end of year |
|
$ |
181,364 |
|
$ |
184,038 |
|
ADDITIONAL STATISTICS
(in thousands of
Solid Waste Internal Growth: The following table reflects a breakdown of the components of our solid waste internal growth for the three and twelve month periods ended
|
|
Three months ended
|
|
Twelve months ended
|
||
Core Price |
|
|
8.7 % |
|
|
9.5 % |
Surcharges |
|
|
(0.8 %) |
|
|
(0.5 %) |
Volume |
|
|
(2.3 %) |
|
|
(2.0 %) |
Recycling |
|
|
0.8 % |
|
|
(0.8 %) |
Foreign Exchange Impact |
|
|
(0.1 %) |
|
|
(0.5 %) |
Total |
|
|
6.3 % |
|
|
5.7 % |
Revenue Breakdown: The following table reflects a breakdown of our revenue for the three month periods ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
|||||||||
|
|
Revenue |
|
Inter-company |
|
Reported |
|
% |
||||
Solid Waste Collection |
|
$ |
1,385,682 |
|
$ |
(6,093) |
|
$ |
1,379,589 |
|
73.8 |
% |
Solid Waste Disposal and Transfer |
|
|
619,176 |
|
|
(254,381) |
|
|
364,795 |
|
19.5 |
% |
|
|
|
26,031 |
|
|
(496) |
|
|
25,535 |
|
1.4 |
% |
E&P Waste Treatment, Recovery and Disposal |
|
|
55,857 |
|
|
(3,296) |
|
|
52,561 |
|
2.8 |
% |
Intermodal and Other |
|
|
48,865 |
|
|
(2,043) |
|
|
46,822 |
|
2.5 |
% |
Total |
|
$ |
2,135,611 |
|
$ |
(266,309) |
|
$ |
1,869,302 |
|
100.0 |
% |
|
||||||||||||
|
|
Three months ended |
|
|||||||||
|
|
Revenue |
|
Inter-company |
|
Reported |
|
% |
||||
Solid Waste Collection |
|
$ |
1,501,882 |
|
$ |
(4,220) |
|
$ |
1,497,662 |
|
73.6 |
% |
Solid Waste Disposal and Transfer |
|
|
672,318 |
|
|
(279,231) |
|
|
393,087 |
|
19.3 |
% |
|
|
|
41,316 |
|
|
(1,462) |
|
|
39,854 |
|
2.0 |
% |
E&P Waste Treatment, Recovery and Disposal |
|
|
59,780 |
|
|
(3,677) |
|
|
56,103 |
|
2.7 |
% |
Intermodal and Other |
|
|
49,066 |
|
|
(163) |
|
|
48,903 |
|
2.4 |
% |
Total |
|
$ |
2,324,362 |
|
$ |
(288,753) |
|
$ |
2,035,609 |
|
100.0 |
% |
Contribution from Acquisitions: The following table reflects revenues from acquisitions, net of divestitures, for the three and twelve month periods ended
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
Three months ended |
|
Twelve months ended |
||||||||||
|
|
2022 |
|
2023 |
|
2022 |
|
2023 |
||||||
Acquisitions, net |
|
$ |
149,994 |
|
$ |
51,011 |
|
$ |
552,001 |
|
$ |
407,313 |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADDITIONAL STATISTICS (continued)
(in thousands of
Other Cash Flow Items: The following table reflects cash interest and cash taxes for the three and twelve month periods ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
Twelve months ended |
||||||||
|
|
2022 |
|
2023 |
|
2022 |
|
2023 |
||||
Cash Interest Paid |
|
$ |
58,883 |
|
$ |
69,868 |
|
$ |
177,424 |
|
$ |
260,923 |
Cash Taxes Paid |
|
|
46,556 |
|
|
81,470 |
|
|
100,156 |
|
|
207,020 |
Debt to Book Capitalization as of
Internalization
for the three months ended
Days Sales Outstanding
for the three months ended
Share Information for the three months ended
|
|
|
Basic shares outstanding |
|
257,636,138 |
Dilutive effect of equity-based awards |
|
667,232 |
Diluted shares outstanding |
|
258,303,370 |
NON-GAAP RECONCILIATION SCHEDULE
(in thousands of
Reconciliation of Adjusted EBITDA:
Adjusted EBITDA, a non-GAAP financial measure, is provided supplementally because it 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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
Twelve months ended |
||||||||
|
|
2022 |
|
2023 |
|
2022 |
|
2023 |
||||
Net income attributable to |
|
$ |
194,352 |
|
$ |
126,753 |
|
$ |
835,662 |
|
$ |
762,800 |
Plus/(Less): Net income (loss) attributable to noncontrolling interests |
|
|
(51) |
|
|
(124) |
|
|
339 |
|
|
26 |
Plus: Income tax provision |
|
|
57,063 |
|
|
34,760 |
|
|
212,962 |
|
|
220,675 |
Plus: Interest expense |
|
|
64,766 |
|
|
69,728 |
|
|
202,331 |
|
|
274,642 |
Less: Interest income |
|
|
(3,376) |
|
|
(2,464) |
|
|
(5,950) |
|
|
(9,350) |
Plus: Depreciation and amortization |
|
|
242,830 |
|
|
253,124 |
|
|
918,960 |
|
|
1,003,211 |
Plus: Closure and post-closure accretion |
|
|
4,105 |
|
|
5,909 |
|
|
16,253 |
|
|
19,605 |
Plus/(Less): Impairments and other operating items |
|
|
(1,237) |
|
|
169,595 |
|
|
18,230 |
|
|
238,796 |
Less: Other income, net |
|
|
(781) |
|
|
(4,135) |
|
|
(3,154) |
|
|
(12,481) |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
Plus: Transaction-related expenses(a) |
|
|
6,239 |
|
|
3,639 |
|
|
24,933 |
|
|
10,653 |
Plus/(Less): Fair value changes to equity awards(b) |
|
|
(263) |
|
|
(1,791) |
|
|
86 |
|
|
(1,726) |
Plus: Executive separation costs(c) |
|
|
- |
|
|
1,042 |
|
|
- |
|
|
16,105 |
Adjusted EBITDA |
|
$ |
563,647 |
|
$ |
656,036 |
|
$ |
2,220,652 |
|
$ |
2,522,956 |
|
|
|
|
|
|
|
|
|
|
|
|
|
As % of revenues |
|
|
30.2 % |
|
|
32.2 % |
|
|
30.8 % |
|
|
31.5 % |
____________________________ |
(a) Reflects the addback of acquisition-related transaction costs. |
(b) Reflects fair value accounting changes associated with certain equity awards. |
(c) Reflects the cash and non-cash components of severance expense associated with an executive departure. |
NON-GAAP RECONCILIATION SCHEDULE (continued)
(in thousands of
Reconciliation of Adjusted Free Cash Flow:
Adjusted free cash flow, a non-GAAP financial measure, is provided supplementally because it is widely used by investors as a liquidity measure in the solid waste industry.
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
Twelve months ended |
|
|||||||||||||
|
|
|
2022 |
|
2023 |
|
|||||||||||
Net cash provided by operating activities |
|
|
$ |
2,022,492 |
|
$ |
2,126,817 |
|
|||||||||
Less: Change in book overdraft |
|
|
|
(1,076) |
|
|
(790) |
|
|||||||||
Plus: Proceeds from disposal of assets |
|
|
|
30,676 |
|
|
31,581 |
|
|||||||||
Less: Capital expenditures for property and equipment |
|
|
|
(912,677) |
|
|
(934,000) |
|
|||||||||
Adjustments: |
|
|
|
|
|
|
|
|
|||||||||
Payment of contingent consideration recorded in earnings(a) |
|
|
|
2,982 |
|
|
- |
|
|||||||||
Cash received for divestitures(b) |
|
|
|
(5,671) |
|
|
(6,194) |
|
|||||||||
Transaction-related expenses(c) |
|
|
|
30,825 |
|
|
5,519 |
|
|||||||||
Executive separation costs (d) |
|
|
|
- |
|
|
1,686 |
|
|||||||||
Pre-existing Progressive Waste share-based grants(e) |
|
|
|
286 |
|
|
1,285 |
|
|||||||||
Tax effect(f) |
|
|
|
(2,993) |
|
|
(1,772) |
|
|||||||||
Adjusted free cash flow |
|
|
$ |
1,164,844 |
|
$ |
1,224,132 |
|
|||||||||
|
|
|
|
|
|
|
|
|
|||||||||
As % of revenues |
|
|
|
16.2 % |
|
|
15.3 % |
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
___________________________ |
|
(a) |
Reflects the addback of acquisition-related payments for contingent consideration that were recorded as expenses in earnings and as a component of cash flows from operating activities as the amounts paid exceeded the fair value of the contingent consideration recorded at the acquisition date. |
(b) |
Reflects the elimination of cash received in conjunction with the divestiture of certain operations. |
(c) |
Reflects the addback of acquisition-related transaction costs and in 2022, the settlement of an acquired tax liability. |
(d) |
Reflects the cash component of severance expense associated with an executive departure. |
(e) |
Reflects the cash settlement of pre-existing Progressive Waste share-based awards during the period. |
(f) |
The aggregate tax effect of footnotes (a) through (e) is calculated based on the applied tax rates for the respective periods. |
NON-GAAP RECONCILIATION SCHEDULE (continued)
(in thousands of
Reconciliation of Adjusted Net Income attributable to
Adjusted net income attributable to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
Twelve months ended |
||||||||
|
|
2022 |
|
2023 |
|
2022 |
|
2023 |
||||
Reported net income attributable to |
|
$ |
194,352 |
|
$ |
126,753 |
|
$ |
835,662 |
|
$ |
762,800 |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of intangibles(a) |
|
|
41,719 |
|
|
39,833 |
|
|
155,675 |
|
|
157,573 |
Impairments and other operating items(b) |
|
|
(1,237) |
|
|
169,595 |
|
|
18,230 |
|
|
238,796 |
Transaction-related expenses(c) |
|
|
6,239 |
|
|
3,639 |
|
|
24,933 |
|
|
10,653 |
Fair value changes to equity awards(d) |
|
|
(263) |
|
|
(1,791) |
|
|
86 |
|
|
(1,726) |
Executive separation costs(e) |
|
|
- |
|
|
1,042 |
|
|
- |
|
|
16,105 |
Tax effect(f) |
|
|
(11,053) |
|
|
(53,592) |
|
|
(49,312) |
|
|
(102,948) |
Adjusted net income attributable to |
|
$ |
229,757 |
|
$ |
285,479 |
|
$ |
985,274 |
|
$ |
1,081,253 |
Diluted earnings per common share attributable to |
|
|
|
|
|
|
|
|
|
|
|
|
Reported net income |
|
$ |
0.75 |
|
$ |
0.49 |
|
$ |
3.24 |
|
$ |
2.95 |
Adjusted net income |
|
$ |
0.89 |
|
$ |
1.11 |
|
$ |
3.82 |
|
$ |
4.19 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
____________________________ |
|
(a) |
Reflects the elimination of the non-cash amortization of acquisition-related intangible assets. |
(b) |
Reflects adjustments for impairments and other operating items. |
(c) |
Reflects the addback of acquisition-related transaction costs. |
(d) |
Reflects fair value accounting changes associated with certain equity awards. |
(e) |
Reflects the cash and non-cash components of severance expense associated with an executive departure. |
(f) |
The aggregate tax effect of the adjustments in footnotes (a) through (e) is calculated based on the applied tax rates for the respective periods. |
2024 OUTLOOK
NON-GAAP RECONCILIATION SCHEDULE
(in thousands of
Reconciliation of Adjusted EBITDA: |
|||||
|
|||||
|
|
|
2024 Outlook |
||
|
|
|
Estimates |
|
Observation |
Net income attributable to |
|
$ |
1,096,000 |
|
|
Plus: Income tax provision |
|
|
336,000 |
|
Approximate 23.5% effective rate |
Plus: Interest expense, net |
|
|
280,000 |
|
|
Plus: Depreciation and Depletion |
|
|
948,000 |
|
Approximately 10.8% of revenue |
Plus: Amortization |
|
|
172,000 |
|
Approximately 2.0% of revenue |
Plus: Closure and post-closure accretion |
|
|
28,000 |
|
|
Adjusted EBITDA |
|
$ |
2,860,000 |
|
Approximately 32.7% of revenue |
Reconciliation of Adjusted Free Cash Flow: |
|||
|
|
|
|
|
|
2024 Outlook Estimates |
|
Net cash provided by operating activities(a) |
|
$ |
2,350,000 |
Less: Capital expenditures(b) |
|
|
(1,150,000) |
Adjusted free cash flow |
|
$ |
1,200,000 |
____________________________ |
|
(a) |
Net cash provided by operating activities includes |
(b) |
Capital expenditures of |
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