Waste Connections Inc. ( WCN Quick Quote WCN - Free Report) reported better-than-expected fourth-quarter 2020 results.
Adjusted earnings of 68 cents per share beat the Zacks Consensus Estimate by 9.7% but decreased 1.5% year over year. Revenues of $1.39 billion beat the consensus mark by 4.1% and improved 2.7% year over year.
Acquisitions contributed $52.7 million to revenues in the reported quarter.
Over the past year, shares of Waste Connection have declined 4.4% compared with 21.3% decline of the
industry it belongs to.
Let’s check out the numbers in detail.
Revenues by Segment Solid Waste Collection segment revenues increased 4.9% year over year to $1.02 billion. The segment accounted for 73% of total revenues. Solid Waste Disposal and Transfer segment revenues increased 3.3% from the year-ago quarter to $292.82 million. The segment contributed 20.9% of total revenues. Intermodal and Other segment revenues increased 9.3% to $33.36 million. The segment accounted for 2.4% of total revenues. Solid Waste Recycling segment revenues improved 95.2% year over year to $25.78 million. The segment accounted for 1.9% of total revenues. E&P Waste Treatment, Recovery and Disposal segment revenues decreased 59.1% from the year-ago quarter to $25.53 million. The segment contributed 1.8% to total revenues. Operating Results
Adjusted EBITDA in the reported quarter was $426.55 million, up 1.8% from the year-ago quarter. Adjusted EBITDA margin came in at 30.5% compared with 30.8% in the year-ago quarter.
Operating income totaled $197.14 million, up 1.5% from the year-ago quarter. Operating income margin came in at 14.1% compared with 14.3% in the year-ago quarter.
Balance Sheet and Cash Flow
Waste Connections exited fourth-quarter 2020 with cash and cash equivalents of $617.29 million compared with $859.09 million at the end of the prior quarter. Long-term debt was $4.71 billion compared with $4.68 billion at the end of the prior quarter.
The company generated $222.95 million of cash from operating activities in the reported quarter. Adjusted free cash flow was $63.51 million. Capital expenditures totaled $176.36 million.
The company paid out dividend of $53.96 million in the reported quarter.
Waste Connections unveiled its guidance for 2021. The company expects revenues to be around $5.80 billion. The Zacks Consensus Estimate of $5.83 billion lies above the guidance.
Net income is expected to be around $669 million. Adjusted EBITDA is anticipated to be around $1.80 billion. Net cash provided by operating activities is estimated to be around $1.575 billion. Capital expenditures are expected to be nearly $625 million. Adjusted free cash flow is anticipated to be nearly $950 million.
Currently, Waste Connections carries a Zacks Rank #3 (Hold). You can see
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