Waste Connections’ Net Profits, Revenue Climb for 2014

Waste Connections recorded stronger net profits and revenue for its fourth quarter and year.

For the final period ended Dec. 31, net earnings for The Woodlands, Texas-based Waste Connections climbed 23.1 percent to $60.8 million, or 49 cents per diluted share, compared with $49.4 million, or 40 cents per diluted share, in the year-ago period.

Revenue increased 8.3 percent to $526.2 million from $485.9 million, according to a news release.

"(The fourth quarter) capped off an exceptional year for Waste Connections, with solid waste volume growth and increased E&P (exploration and production) disposal activity once again driving better than expected revenue in the period and providing strong momentum into 2015,” said Ron Mittelstaedt, Waste Connections chairman and CEO. “More importantly, the quality of revenue growth in 2014 enabled us to expand margins and deliver over $320 million of adjusted free cash flow despite a record amount of capital expenditures in the year, including the construction of three new disposal facilities and pulling forward an additional $20 million of capital expenditures to take advantage of the extension of bonus depreciation enacted late in the year."

For the year, net profits advanced 18.8 percent to $232.5 million, or $1.86 per diluted share, compared with $195.7 million, or $1.58 per diluted share, in 2013. Revenue rose 7.8 percent to $2.08 million from $1.93 million a year earlier.

Waste Connections said for 2015 it expects revenue of about $2.15 billion, and earnings before interest, taxes, depreciation and amortization (EBITDA) of about 33.5 percent to 34 percent of revenue.