Item 7.01 Regulation FD Disclosure.
During our earnings conference call on February 16, 2023, we highlighted the
following outlook for the first quarter 2023.
(Dollar amounts are approximations)
For the first quarter of the year, we estimate our revenue to be approximately
$1.895 billion. We expect price plus volume growth for solid waste of 10.5% on
pricing of about 11.5%. Net income attributable to Waste Connections is
estimated to be approximately $192.5 million. Adjusted EBITDA is estimated to be
approximately $568 million, or 30.0% of revenue.
Q1 2023 OUTLOOK
NON-GAAP RECONCILIATION SCHEDULE
(in thousands of U.S. dollars, except where noted)
Reconciliation of Adjusted EBITDA:
Q1 2023 Outlook
Estimates Observation
Net income attributable
to Waste Connections $ 192,500
Plus: Income tax Approximately 22.0%
provision 54,250 effective rate
Plus: Interest expense,
net of interest income 67,000
Plus: Depreciation and Approximately 11.2% of
depletion 211,500 revenue
Plus: Amortization 38,500 Approximately 2.0% of
revenue, or $0.11 per
diluted share net of taxes
Plus: Closure and
post-closure accretion 4,250
Approximately 30.0% of
Adjusted EBITDA $ 568,000 revenue
For the full year, in addition to the outlook provided in our Current Report on
Form 8-K filed with the Securities and Exchange Commission on February 15, 2023,
we expect pricing of about 9.5%, essentially all core, and volumes in the range
of flat to down 1%.
These estimates assume no change in the current economic environment. They also
exclude any impact from additional acquisitions that may close during the
remainder of the year, and expensing of transaction-related items during the
period.
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
our operations. We define adjusted EBITDA as net income attributable to Waste
Connections, plus or minus net income (loss) attributable to noncontrolling
interests, plus income tax provision, plus interest expense, less interest
income, plus depreciation and amortization expense, plus closure and
post-closure accretion expense, plus or minus any loss or gain on impairments
and other operating items, plus other expense, less other income. We further
adjust this calculation to exclude the effects of other items management
believes impact the ability to assess the operating performance of our business.
This measure is not a substitute for, and should be used in conjunction with,
GAAP financial measures. Other companies may calculate adjusted EBITDA
differently.
The information furnished in Item 7.01 is not deemed "filed" for purposes of
Section 18 of the Securities Exchange Act of 1934, as amended, is not subject to
the liabilities of that section, and is not deemed incorporated by reference in
any filing under the Securities Act of 1933, as amended.
Safe Harbor and Forward-Looking Information
This document contains forward-looking statements within the meaning of the safe
harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995
("PSLRA"), including "forward-looking information" within the meaning of
applicable Canadian securities laws. These forward-looking statements are
neither historical facts nor assurances of future performance and reflect Waste
Connections' current beliefs and expectations regarding future events and
operating performance. These forward-looking statements are often identified by
the words "may," "might," "believes," "thinks,"
"expects," "estimate," "continue," "intends" or other words of similar meaning.
All of the forward-looking statements included in this document are made
pursuant to the safe harbor provisions of the PSLRA and applicable securities
laws in Canada. Forward-looking statements involve risks and uncertainties.
Forward-looking statements in this document include, but are not limited to,
statements about expected 2023 financial results, outlook and related
assumptions, and potential acquisition activity. Important factors that could
cause actual results to differ, possibly materially, from those indicated by the
forward-looking statements include, but are not limited to, risk factors
detailed from time to time in the Company's filings with the SEC and the
securities commissions or similar regulatory authorities in Canada. You should
not place undue reliance on forward-looking statements, which speak only as of
the date of this document. Waste Connections undertakes no obligation to update
the forward-looking statements set forth in this document, whether as a result
of new information, future events, or otherwise, unless required by applicable
securities laws.
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