Item 7.01 Regulation FD Disclosure.
During our earnings conference call on July 25, 2024, we highlighted the following outlook for the third quarter 2024.
(Dollar amounts are approximations)
For the third quarter of the year, we estimate our revenue to be in the range of $2.275 billion to $2.300 billion. Net income attributable to Waste Connections is estimated to be in the range of approximately $297 million to $302 million. Adjusted EBITDA is estimated to be in the range of approximately $767 million to $776 million, or approximately 33.7% of revenue.
Q3 2024 OUTLOOK
NON-GAAP RECONCILIATION SCHEDULE
(in thousands of U.S. dollars, except where noted)
Reconciliation of Adjusted EBITDA:
| | | | | | | |
| Q3 2024 Outlook |
| Estimates | | |
| Low | | High | | Observation |
Net income attributable to Waste Connections | $ | 297,000 | | $ | 302,000 | | |
Plus: Income tax provision | | 91,000 | | | 93,000 | | Approximately 23.5% effective rate |
Plus: Interest expense, net of interest income | | 82,000 | | | 82,000 | | |
Plus: Depreciation and depletion | | 246,000 | | | 248,000 | | Approximately 10.8% of revenue |
Plus: Amortization | | 44,000 | | | 44,000 | | Approximately 1.9% of revenue, or $0.13 per diluted share net of taxes |
Plus: Closure and post-closure accretion | | 7,000 | | | 7,000 | | |
Adjusted EBITDA | $ | 767,000 | | $ | 776,000 | | Approximately 33.7% of revenue |
These estimates assume no change in the current economic environment or 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
