Waste Connections Inc. ( WCN Quick Quote WCN - Free Report) reported better-than-expected first-quarter 2021 results.
Adjusted earnings (excluding 9 cents from non-recurring items) of 70 cents per share beat the Zacks Consensus Estimate by 4.5% and increased 7.7% year over year. Revenues of $1.39 billion beat the consensus mark by 1.5% and rose 3.2% year over year.
Acquisitions contributed $40.5 million to revenues in the reported quarter.
In the past year, shares of Waste Connection have surged 36.4% compared with 35.4% increase of the industry it belongs to.
Let’s check out the numbers in detail.
Revenues by Segment
Solid Waste Collection segment revenues increased 4.8% year over year to $1.03 billion. The segment contributed 74% to total revenues.
Solid Waste Disposal and Transfer segment revenues increased 4.2% from the year-ago quarter’s level to $270.8 million. The segment contributed 19.4% to total revenues.
Intermodal and Other segment revenues increased 18.7% to $35.6 million. The segment contributed r 2.5% to total revenues.
Solid Waste Recycling segment revenues surged 79.2% year over year to $31.45 million. The segment contributed 2.25% to total revenues.
E&P Waste Treatment, Recovery and Disposal segment revenues declined 58.4% from the year-ago quarter’s level to $24.66 million. The segment contributed 1.8% to total revenues.
Adjusted EBITDA in the reported quarter was $433.2 million, up 6% from the year-ago quarter’s levels. Adjusted EBITDA margin came in at 31% compared with 30.2% in the year-ago quarter.
Operating income totaled $238.4 million, up 9.8% from the year-ago quarter’s figures. Operating income margin came in at 17.1% compared with 16% in the year-ago quarter.
Balance Sheet and Cash Flow
Waste Connections exited first-quarter 2021 with cash and cash equivalents of $743.46 million compared with $617.29 million at the end of the prior quarter. Long-term debt was $4.61 billion compared with $4.71 billion at the end of the prior quarter.
The company generated $400.4 million of cash from operating activities in the reported quarter. Adjusted free cash flow was $289.8 million. Capital expenditures totaled $96.79 million.
The company paid out dividend of $53.9 million in the reported quarter.
Currently, Waste Connections carries a Zacks Rank #3 (Hold). You can see
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