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Waste Connections (WCN) Beats on Q2 Earnings & Revenues
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Waste Connections Inc. (WCN - Free Report) reported solid second-quarter 2016 results, with adjusted net income of $93.2 million or 66 cents per share, compared with adjusted net income of $61.6 million or 50 cents per share in the year-ago quarter. The year-over-year increase in earnings is primarily attributable to higher revenues during the quarter. Adjusted earnings also beat the Zacks Consensus Estimate by 12 cents.
The quarter saw a sharp decline in GAAP earnings to $27.5 million or 20 cents per share from $57.4 million or 46 cents per share in the year-ago quarter. The decline was largely due to higher operating expenses.
Revenues came in at approximately $727.6 million during the quarter, up from $531.3 million a year ago, and beat the Zacks Consensus Estimate of $711 million. The top line was driven by 46.7% growth at the Solid Waste Collection segment. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) increased to $233.6 million from $177.7 million in the year-ago quarter.
Segment Revenues
Solid Waste Collection was the highest contributor at 68.9% of revenues in the second quarter, which also increased significantly from $341.6 million in the year-earlier quarter to $501.2 million.
Solid Waste Disposal and Transfer contributed 22% to revenues. Quarterly revenues were up to $160 million from $107.1 million in the prior-year quarter. Solid Waste Recycling revenues improved to $16.7 million from $12.1 million a year ago.
E&P Waste Treatment, Recovery and Disposal saw a major drop in revenues to $27.5 million from $52.5 million in the year-ago quarter. The 47.6% decline in E&P waste services resulted from a continued decrease in drilling activity throughout the period.
Finally, Intermodal and Other contributed 3% to the total revenue, and increased to $22.2 million from $18.1 million in the prior-year quarter.
Merger
During the quarter the company completed the merger with Progressive Waste Solutions Ltd. The deal is expected to enhance Waste Connections’ financial profile and enhance its operational footprint.
Balance Sheet & Cash Flow
Waste Connections had cash and cash equivalents of $55.6 million and long-term debt and notes payable of $3,761.3 million.
Net cash from operating activities was $259.6 million for the first six months of 2016, while adjusted free cash flow was $120.7 million for the quarter compared with $97.2 million in the prior-year period.
Waste Connections carries a Zacks Rank #3 (Hold). Some better-ranked stocks worth a glance include Carlisle Companies Incorporated (CSL - Free Report) , Republic Services, Inc. (RSG - Free Report) and Leucadia National Corporation . All three stocks carry a Zacks Rank #2 (Buy).
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Waste Connections (WCN) Beats on Q2 Earnings & Revenues
Waste Connections Inc. (WCN - Free Report) reported solid second-quarter 2016 results, with adjusted net income of $93.2 million or 66 cents per share, compared with adjusted net income of $61.6 million or 50 cents per share in the year-ago quarter. The year-over-year increase in earnings is primarily attributable to higher revenues during the quarter. Adjusted earnings also beat the Zacks Consensus Estimate by 12 cents.
The quarter saw a sharp decline in GAAP earnings to $27.5 million or 20 cents per share from $57.4 million or 46 cents per share in the year-ago quarter. The decline was largely due to higher operating expenses.
Revenues came in at approximately $727.6 million during the quarter, up from $531.3 million a year ago, and beat the Zacks Consensus Estimate of $711 million. The top line was driven by 46.7% growth at the Solid Waste Collection segment. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) increased to $233.6 million from $177.7 million in the year-ago quarter.
Segment Revenues
Solid Waste Collection was the highest contributor at 68.9% of revenues in the second quarter, which also increased significantly from $341.6 million in the year-earlier quarter to $501.2 million.
Solid Waste Disposal and Transfer contributed 22% to revenues. Quarterly revenues were up to $160 million from $107.1 million in the prior-year quarter. Solid Waste Recycling revenues improved to $16.7 million from $12.1 million a year ago.
E&P Waste Treatment, Recovery and Disposal saw a major drop in revenues to $27.5 million from $52.5 million in the year-ago quarter. The 47.6% decline in E&P waste services resulted from a continued decrease in drilling activity throughout the period.
Finally, Intermodal and Other contributed 3% to the total revenue, and increased to $22.2 million from $18.1 million in the prior-year quarter.
Merger
During the quarter the company completed the merger with Progressive Waste Solutions Ltd. The deal is expected to enhance Waste Connections’ financial profile and enhance its operational footprint.
Balance Sheet & Cash Flow
Waste Connections had cash and cash equivalents of $55.6 million and long-term debt and notes payable of $3,761.3 million.
Net cash from operating activities was $259.6 million for the first six months of 2016, while adjusted free cash flow was $120.7 million for the quarter compared with $97.2 million in the prior-year period.
WASTE CONNECTN Price, Consensus and EPS Surprise
WASTE CONNECTN Price, Consensus and EPS Surprise | WASTE CONNECTN Quote
Waste Connections carries a Zacks Rank #3 (Hold). Some better-ranked stocks worth a glance include Carlisle Companies Incorporated (CSL - Free Report) , Republic Services, Inc. (RSG - Free Report) and Leucadia National Corporation . All three stocks carry a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>