Waste Connections reports (TSE:WCN) 37% rise in revenue after Progressive Waste acquisition

Canadian solid waste services company Waste Connections Inc (TSE:WCN, Mkt cap 20.71B, P/E 57.41, Div/yield 0.24/0.83, EPS 1.99, Shares 175.20M) announced on Tuesday a 37% increase in revenue for 2016, boosted by its merger with Progressive Waste Solutions Ltd. which was completed in June.

TSE:WCN revenue for the year ended 31 December 2016 grew to US$3.376bn, compared with US$2.117bn in 2015.

Operating income for the year — which included US$118.3m of items primarily related to the Progressive Waste acquisition and US$27.7m of impairments and other items — was US$452.3m, up from an operating loss of US$61.5m in 2015 which included approximately U$497.1m of net impairment charges.

Adjusted EBITDA in 2016 was US$1.071bn, compared with US$710.6m in the prior year, and net income attributable to Waste Connections increased to US$246.5m from a net loss of US$95.8m in 2015.

Ronald J. Mittelstaedt, chairman and CEO, described 2016 as "a transformational year" for Waste Connections.

"More importantly, our culture and operating playbook enabled us to drive significant improvements in safety, quality of revenue and operating performance within these operations, all pacing 12 to 18 months ahead of our initial expectations," he continued. "This was evident in the fourth quarter as our results once again exceeded expectations. This underlying strength, together with the previously announced acquisition of Groot Industries and continuing improvements in recycled commodity values and E&P waste activity, should position us well for 2017."

Waste Connections announced in January that it had acquired Groot Industries, Inc., the largest independent solid waste services provider in Illinois.

In 2017 Waste Connections expects to generate revenue of approximately US$4.45bn, with adjusted EBITDA of approximately US$1.41bn, or about 31.7% of revenue.

Waste Connections Inc (TSE:WCN), formerly Progressive Waste Solutions Ltd, is a Concord, Ontario based waste management company. The Company provides waste collection, recycling and disposal services to commercial, industrial, municipal and residential customers in over 10 states in the United States, and the District of Columbia, and in over six Canadian provinces. The Company operates through three segments: the East, the West and the North. The business segments are vertically integrated and their operations include the collection and disposal of waste and recyclable materials, transfer station operations, material recovery facilities, landfills and landfill gas to energy facilities. The Company offers various solutions for business, residential and public sector. The Company offers commercial, industrial and manufacturing, construction and demolition, and Leadership in Energy and Environmental Design (LEED) services, among others for business. More from Reuters »

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