Item 7.01 Regulation FD Disclosure.
During our earnings conference call on November 3, 2022, we highlighted the
following outlook for the fourth quarter 2022.
(Dollar amounts are approximations)
For the fourth quarter of the year, we estimate our revenue to be approximately
$1.845 billion. We expect solid waste price plus volume growth to be 7.5% to 8%,
led by total price remaining around 10%, and with reported volumes continuing to
reflect the 0.8% impact from expired contracts. Net income attributable to Waste
Connections is estimated to be approximately $195.3 million. Adjusted EBITDA is
estimated to be approximately $553 million, or 30.0% of revenue.
Q4 2022 OUTLOOK
NON-GAAP RECONCILIATION SCHEDULE
(in thousands of U.S. dollars, except where noted)
Reconciliation of Adjusted EBITDA:
Q4 2022 Outlook
Estimates Observation
Net income attributable
to Waste Connections $ 195,250
Plus: Income tax Approximately 21.5%
provision 53,500 effective rate
Plus: Interest expense,
net of interest income 62,000
Plus: Depreciation and Approximately 10.6% of
depletion 196,000 revenue
Plus: Amortization 42,000 Approximately 2.3% of
revenue, or $0.12 per
diluted share net of taxes
Plus: Closure and
post-closure accretion 4,250
Approximately 30.0% of
Adjusted EBITDA $ 553,000 revenue
These estimates assume no significant change in underlying economic trends.
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 fourth quarter 2022 outlook for financial results.
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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