Waste Connections Posts Third Quarter Results; Discloses Acquisitions

Waste Connections Inc. reported lower net income but higher revenue for its third quarter and announced several acquisitions.

The Woodlands, Texas-based Waste Connections said for the period ended Sept. 30 net earnings slipped 1 percent to $60.1 million, or 48 cents per diluted share, compared with $60.7 million, or 49 cents per diluted share, in the year-ago period.

Revenue climbed 8.5 percent to $546.6 million from $503.6 million in the 2013 quarter, according to a news release.

"We once again are extremely pleased with our strong performance in the quarter,” said Ron Mittelstaedt, Waste Connections chairman and CEO. “Improving commercial collection trends and a 7-percent increase in municipal solid waste landfill tonnage drove better than expected solid waste volume growth, and E&P (exploration and production) waste activity continued to grow in excess of 20 percent despite more difficult prior year comps and unusually wet weather in the Permian (Basin in the U.S. southwest)." 

Mittelstaedt also said Waste Connections acquired solid waste collection operations in Alabama and North Dakota, with combined annualized revenue of almost $20 million. In addition, to bolster its E&P position, the company purchased a treatment and disposal company with two landfills in the Bakken formation in the North American Northwest with current annualized revenue of about $10 million and ramping, and four additional permitting opportunities in North Dakota, Montana and Wyoming. 

Mittelstaedt anticipates that these transactions, along with others the company expects to complete during the next few months, will provide addition opportunity for growth in 2015.

For the nine months, Waste Connections net income rose 17.5 percent to  $171.8 million, or $1.38 per diluted share, compared with $146.2 million, or $1.18 per diluted share, a year earlier.

Revenue increased 7.6 percent to $1.55 billion from $1.44 billion a year ago.