Progressive Waste Posts Higher Revenue, Lower Income for Quarter

Progressive Waste Solutions Ltd. reported higher revenue but lower net income for its third quarter, resulting from higher costs.

The Vaughan, Ontario-based Progressive said in a news release that for the quarter ended Sept. 30 net earnings dropped 3.8 percent to $20.1 million, or 17 cents per share, compared with $32.2 million, or 28 cents per share, in the year-ago period.

Revenue climbed 6.9 percent to $520.7 million compared with $487.2 million in the 2012 quarter.

For the nine-month period, net profits slipped 1.1 percent to $81.7 million, or 71 cents per share, from $82.6 million, or 71 cents per share, a year earlier. Revenue rose 8.8 percent to $1.52 billion compared with $1.4 billion in the 2012 period.

Pricing and volume improvements were offset by higher-than-normal costs in insurance and claims, said Joseph Quarin, vice chairman and CEO. The firm also had increased costs associated with an increase in industrial roll-off demand and delayed contributions from its two new material recovery facilities (MRF).

Progressive Waste revised its guidance for 2013, with earnings before interest, taxes, depreciation and amortization (EBITDA) now set at $530 million to $536 million compared with the previous guidance of $538 million to $548 million. Revenue guidance was revised upward, to $2.02 billion to $2.03 billion, compared with $1.98 billion to slightly less than $2 billion.