Waste Connections (WCN) 25 Apr 242024 Q1 Earnings call transcript

Good morning, everyone, and welcome to the Waste Connections, Inc. Q1 2024 Earnings Conference Call. [Operator Instructions] Please also note today's event is being recorded. At this time, I'd like to turn the floor over to Ron Mittelstaedt, President and CEO. Please go ahead.

Okay. good and operator, you, morning. Thank second to I call a to the conference everyone discuss would detailed our for provide like to to first this and welcome quarter quarter. outlook results Mary I'm joined other of senior our Whitney, CFO, and members Anne management. this several our by morning

seasonally weakest track XXX rising as are by with and the remainder positions outlook acquisitions, full quarter in of start retention puts margin of along performance. us for XX.X%, us to the the year We XXXX. commodity the values, on XX.X% continuing to of better-than-expected industry-leading Adjusted employee trends, driving expansion completed year year, extremely with improvements provide in points financial exceed and momentum recently pleased our of EBITDA safety operating continued margin results, strong to for the basis which, along well

let much to housekeeping as into items. get Mary we for more well our Anne over Before turn disclaimer forward-looking detail, the call other as me

detail commissions cautionary in the greater and the to risks in Commission in that the regulatory due or good differ and Securities U.S. statement XX are Litigation during in the including of made release Actual applicable Securities Private U.S. Ron, and similar authorities Canadian could made meaning today's the Factors the and such safe Act those included could cause uncertainties. harbor securities you, of to statements Connections differ Exchange within our various statements Waste both forward-looking morning. results forward-looking Reform XXXX, actual pursuant results securities filings Thank Canada. and discussed materially to earnings of in includes from provisions call discussion information in April with laws. The forward-looking

may have not after update revise make undue to our reliance could in aware any there forward-looking are presently adverse which commitment order should or today's are that we may to or impact or be no not reflect statements immaterial, business. date. as we which that We additional an believe on change events risks of currently You statements circumstances forward-looking place on

non-GAAP call, and measures non-GAAP uses the measures. most On releases monitor to turn the Please non-GAAP over Waste the ongoing as and free our differently. the now will measures such and back financial share our operations. refer measures diluted cash of performance to Connections of may adjusted comparable net such attributable to companies Management GAAP the evaluate we flow. for a will adjusted to on per both Other these call Ron. adjusted discuss dollar certain income basis EBITDA, reconciliation non-GAAP I to calculate measures earnings

Okay. Anne. Thank Mary you,

quarter with a of by margin and a in beat As delivered and basis a great continued number adjusted drivers, spite for noted to in weather we January the XXXX points financial in our expansion earlier, beginning Already this outperformance from during early XX number all achieved above EBITDA was in momentum March. outlook impacts significant set and margin of off the to with year, up measures, for any start our outsized industry-leading we're of bottom results. top

saw which for and sixth the with sequentially, we quarter results, 'XX. turnover safety. retention we in improvement most consecutive Along peaks improvement late better-than-expected of financial in down making again once below trends continued to saw stepped importantly, now QX, voluntary In levels, XX% the employee are

safety, consecutive month. for the with in rates improvement seventh continued saw incidence we Similarly, declining

an of outsized some that performance employees. acquisitions in growth our spite a with QX, and of empowered best to We believe our commitment of engaged X-year during In accountability in incidents fact, we during these years, to from down monthly achieved period. culture results lows, with safety reflect

which our in-house will about employee open and training, second of growth support steps development and offering. technician including to academies, excited with we're expanded summer, the school end, this taken our through diesel that the To partnership we've driver

recruiting, from and efforts employee these seen we've expect in improving internal will resources We the targeted additional augment efforts. dynamics resulting that

to As and noted safety along unlock continued benefits today. risk previously, future the third-party today maintenance seeing us we're and we savings all and of management, several the positions services, costs from including in retention improving progress with across and expected are seeing growing labor, financials which areas, in

clear, reduced financial waste In growth. Moving solid by we core implemented, results, And solid pricing was to back waste price to yield. organic what of calculate to not what is we churn delivered which first other models actually quarter, be our get starting our the core X.X%. retained, with in

our reflect market our Our price with line in was continues to of model. expectations and retention the resilience

Similarly, of weather beyond with ongoing events, growth we primarily about impacted following our what X.X% would XXX reported points extreme in purposeful reported shedding. which January, line volumes expectations negative consider basis during by volume typical believe of was levels we

XXX Looking points, strictly activity. calculate on until volumes ramp our a they basis expect we've or differently, And ahead on recycled them typical a E&P, volumes QX, sequential are to we step-up after solid volumes reminder volume owned RNG, a calculations, assuming about reported and for view them may volume not reported in of commodities XX acquisitions differently. changes, seasonal waste as months. Companies would

the outsized contract focus improvements rightsizing the maintain opportunities value opportunity with similar along market, We tailwinds financial on and as and forward fit utilization acquired on few and creation. As for look asset growth expansion, multiyear our has operating to in long-term our shedding acquisitions efficiencies. that strategy discussed meet may our from we margin newly the our for nonrenewals otherwise past criteria Depending years locations. in provide quality improving previous purposeful revenue quarters, created over and

pipeline footprint. of of high interest and have opportunities our continue solid robust levels a We seller see to regional waste across

to contributed activity date. approximately As the has our start million year completed noted, acquisition revenue annualized with $XXX strong already in to to

in entry solid and to Michigan. Southern waste revenue, addition over annualized in including February, in divestitures of customers we've acquisitions million secure market the In a energy acquired to services new Indiana we completed $XXX providing

our could our of The position increase free shareholders. strength busiest acquisition XXXX capital along provide years generation and ever, flexibility to one cash continued flow for be our financial for with to continuing outlays in of what

M&A, operational progress to gas, of and utility scheduled outlay. annual we Beyond EBITDA the to from our year. commensurate projects continue industry-wide on of X incremental in continue this in be an renewable on a development million which to multiple RNG are development beginning $XXX or XXXX In capital equipment we to make related facilities, spite of delays of installations, anticipate

and deployed cash noted As previously, million XXXX in has factored into our outlook. $XXX CapEx will year be free been that flow of full

then to Mary quarter wrap to of before QX. Anne in and into more to Q&A. depth the detailed the financial up Now pass a review call I for highlights provide I'd outlook like the heading first will

recovered Thank acquisition first primarily you, higher contributions due the or and on outlook basis to year-over-year. of values. Ron. million a revenue $X.XXX quarter, X.X% billion In our $XXX reported was incremental above Revenue about was million commodity $XX up

ago since the about $XX million, period completed quarter divestitures. in the or contributed Acquisitions revenue of million year $XX net about of

markets. ranged X.X% exclusive up Solid in X% waste our to core led competitive Western our market from price, X% over to growth region organic mostly in which was by

material points to price in rates. and Total primarily reduction related surcharges, XX reflected of about fuel basis X.X% fuel lower a of

already XX% in price range year We is place for this typical of in by of year. by the price with either or core have to us contract, total point X%, pretty high our in visibility for X% full XXXX as specified the

geographic impacts from weather storm-related that resulted price trade-off. Solid about losses include closures beyond and regions volume purposeful losses of volume other of degrees ongoing X% volume our waste shedding January X.X% to the varying in all QX in and across

C&D daily waste on landfill pulls about results both which by outside while down special spite weather-impacted down X% Daily weather flat, down markets declines quarter the first were were and the impact and tons our regions. a in X% Looking at same-store And noted. in XX%, lower our MSW year-over-year driven of basis. in in tons, tons Mid-South were on Eastern were roll-off of most activity

due notable basis. prior improving of was to in roll-off waste the year-over-year January and on ending region in given Western beginning single impacts the activity And our reported of benefited weather tons periods. with widespread, down in Looking the severe but activity saw digits and in most weather March pulls high year with spite both the at slowdown a QX, year-over-year nominally up trends best about during Canada, in franchises, in nature region, which C&D. both volumes outsized quarter, from or Central MSW The and underlying positive our in activity flat QX We were January. in special of and of barometer

renewable and Prices about OCC, old averaged on in values XX% averaged out QX. $XXX slightly collectively played Beyond per up with landfill RINs solid about RINs, better $X.XX. earlier waste, commodity for credits, recycled QX, containers, XX% expected gas in commodities, year. about corrugated this And than ton from up or year-over-year recycled around or revenues energy

points $XXX.X revenue, as XXX was XX our Adjusted XX.X% of margin about and points EBITDA release, year-over-year above for basis basis million our XX.X% outlook. million, up up in our year-over-year earnings and QX, reconciled EBITDA was $XX our At above outlook. adjusted

XXX XX Therefore, weather-related an point basis normalized basis, related on estimated noted. margin to primarily These a results year-over-year. basis up impacts were extreme the include drag margins points

period quarter and to $XX.X the debt million million year the Net interest increased period. interest year $XX.X in prior due to as expense increased outstanding prior over rates the compared to higher by

$XXX with over to completed by debt public a QX, During we offering rate basis notes, points. floating senior proceeds borrowing of directed repayment, cost reducing XXX million of

XX% credit cost average Our average over was approximately of EBITDA. about about tenor current quarter $XXX years. million our and billion, with ended agreement XX debt $X.X about with of which X.Xx liquidity is leverage approximately to of outstanding weighted debt was We the of defined our in an of rate, as ratio X.XX% floating debt

tax as quarter the for included provision expected, The related under compensation. with equity-based rate, benefit rate tax associated effective the excess was XX%. to a QX to just first benefits Our

expected in XXXX. cash it investment and during our line rate a full approximately outlook expectations $X.X provided million in which with effective RNG as billion And has the credit of about free for the tax impact reflected our finally, year, was flow $XXX adjusted an begin of to In February. service basis year with our of tax XX point an addition, associated facility benefit to

for I second will now review quarter outlook XXXX. of the our

outlined that results and may do, significantly statement on regulatory we'd once to like everyone SEC made in I actual uncertainties harbor filings encourage to the similar review securities Before the these based we've risks commissions or remind again carefully. Canada. We with authorities safe investors and in our vary factors and

the of in transaction-related year and significant from It that excludes economic underlying no close change the assumes acquisitions trends. also impact period. additional the outlook remainder of may during expensing Our items during any

of in X%, $XX to our basis of rate of is XX.X%, plus XX.X%, range interest in estimated up X% billion. price approximately to This X.X% quarter. is waste margin and includes net XX.X% including to X% on QX million estimated of taxes. $X.XX X.X% for to at in approximately expense volume and And $X.XXX expense million finally, about some price is be billion in core approximately diluted estimated QX second share from second growth the subject QX about variability. X.X% total amortization approximately year-over-year. Revenue or $XX of to the to the at and of is of EBITDA price for net Adjusted at volume per of $X.X estimated amortization down tax effective X%. XXX quarter Depreciation points solid intangibles estimated at is revenue, Interest income

call over the final some for Ron And turn now back let Q&A. remarks to before me

returned served I has Mary accountability since Anne. decentralized operating to to differentiated as of X model this When importance you, ago seat and of year results drive Thank emphasize the our I beginnings culture the the week, company. a that

of Reflecting local over has progress could on XX teams. past achieved that not the our the prouder been be months, I

capital. say, in doubling important and reinforced results vision playbook our values changes, organizational on and, we've human you've as we've most the value. seen the And down made to we and mostly Although operating added some our

As over reported incidents safety March, in seen lowest same employees for that period. adding we've during X the that years, spite of of X,XXX number in

by not day first delivering So they commitment to they start and do, XX,XXX employees strong by demonstrated put our what who I in whose safety evident say, is accountability every conclude want XXXX. what but a to to only thanking such as

said, we our commodity year. of we With until believe That largely M&A, solid prior earnings could place, improving waste are our benefit to trends, record year release pricing the of outlook as the for QX in be operating consider in a values updating positioned. higher to it's well all the what and wait years appropriate full

over the We appreciate Operator? today, your the will turn to and lines to I now your questions. for operator this call time open up

[Operator question first Tyler Instructions] And Raymond from from today James. Brown our comes

a Obviously, maybe in the the the would given and detail bit margins puts I additional points. we assume slight are M&A maybe was quarter, but just takes great I But from I a the drag some any up fuel, tailwinds, start weather. of little to mean, year, XXX particularly all on basis recycling, color just get the because were could be helpful. do hoping more

Tyler. Sure,

which weather, of in about as we So XXX way it excluding basis volumes. it, we think lower the outsized remarks, the in from think points, those as resulted impacts said

XXX buckets, about split that's basis recycling combined RINs close waste. And points. commodity-driven, underlying basis really XXX I'd about being primarily rest and so So of the the points, X when those X into think solid the remainder, to large business, it being I

You do -- good E&P Acquisitions guy. was are accretive. a

XXX that spread price/cost And within on and so trends the in there, another the basis aggregate, side. the And benefits operating you're the points. seeing of improving that's

look same X%, to went you about X.X% said wages year when X% you're sub had between we increases last X% down we've at looking that instance, where within in For X%, and QX. been from employee

down you're cost. of similarly, So we from safety. an then example And turnover seeing some third-party and leverage where costs of as improve that bring those on price

Excellent. Yes.

I'm Ron, the about Yes, but very about improvement. some I'll discussion kick this, good of going kind there's be to just level, questions sure additional core it Okay. maybe off, it.

some give for broadly, high-level means PFAS EPA that couple about And of obviously, the Waste last it side some But the the could in us weeks. on you U.S. government made was changes just on I regulatory what thoughts Connections. hoping

to wondering operating or on what just in costs. prospects and cost to I get are additional the this the whether your intermediate specifically, was be to may costs, mean thoughts near But leachate landfill it what for any recoup capital term

us industry Sure. Well, one. surprise transpired as I effectively legislation first is any that totally some was means. off, to Tyler, or not This say what the let to expected, greater think by me number with the

field infrastructure It both uniform Number companies. of both the long two, as playing an It where do new it back. point catalyst. good step the to the federal examples also we with those able it created regulation such think but Traditionally, for uniform the that incremental is several are can exceeds this capital creates a And capital has has and to the opportunity wise. to advantage quite and I term of operating this, public very -- price in playing a take of traditionally, creates generally well-capitalized short a M&A field. it and cost comply, creates sort to to access traditionally so. and It

fear this are companies don't concerned or public change way regulation. in I in think any So the federal

of modifying the begins further And of I will from of I going the The particularly, get legislature regulation passive legislation staff there's the to amending of the consumers the permit of producers within material, passive intention okay? you or is hearing, regulation. lot it. really the think targeted taking a receivers a receivers. really things law sort changes there's course, -- on then material and producers This the was the thing and punitive would everything is intended not word is It's which work regulation such of really passive as on level there we're a of Landfill the landfills, a by receiver. the activity not required tell that of of if at passed gives and be behalf other and regulation, at that be the this to and codification as that

I the the So amended of to going of reflect think to language that. see more you're changed law and

and those are. I landfills it our said as said clear that's for to so been And that receivers. passive I the that meant is has are create is they've not EPA what -- that this -- So very think liability

to are this a details but So fractionation landfills We're that a long-winded in implemented. ways gets that. for is already this. others answer Look, relatively capital X low-cost still for the ultimately foam our the how as are there opportunities several of devil over proactively the treatment PFAS such you, X.X doing of from and of years to we anticipation Tyler, at last in

may what and So we of have what idea works a good not.

And I move an would cost and recover it don't it to the for present and least through it, incremental cost can I you that. industry going for to what the it's tell I will price think, is on the not on needle, speak us at pricing capital really

the and the As low-cost far -- again, treatment, of go a the if leachate. do with of change leachate, Tyler, you on-site cost go with as if you cost costs won't it capital capital some

Now and there POTWs for markets, take are it, in -- may not are there just to fear but treated even opt that some most options.

does local that will leachate, pricing through opportunity the are base be raise again, that a cost options. that where If there less customer of

this. we it's long-winded mean, I think think about but I that's how a So answer, holistically

M&A right Extremely we know No, Mary quick benefit know 'XX appreciate Anne, color. -- Very what based is to on One Yes. based the revenue much today, as it. what on housekeeping. now? perfect. we what's good of the what

year what think about that had, would million million. I deal $XX So I activity the already when done, $XX for which the to was $XXX on of full we was incremental add think million that top

next question Khan Capital from Sabahat from comes RBC our And Markets.

down being the some a can little other terms X.X% you Just maybe detail you guidance in was provided hoping shedding please. factors, X%, bit just on to of out of if versus volume QX I that around the that

Yes.

anything, if read it suggests certainly at reflects is I say, an really already margin the amount opportunity M&A sort last the of over more you think year this what and year. would I of second into -- should half of and the of So that increased start

increase, of you that's about would guidance. So basis more all that probably the which I of points that, the on tell basically XX based is

continuous XX would points weather, said, you this point QX, XXX basis XX on we to incremental to Again, what another the little continuing due X XX see roughly quarter. throughout to really QX to points to incremental that's but shedding, to basis as can and to we stepping delta. QX then bit year, is just X change X, per XX up And expect a a basis improvement that

Okay. just Great. maybe the margin last continuing the And from discussion then question.

I think seems It RINs, we're was kind at core of looking improvement recycling improvement margin XXX-plus bps business like cetera. margin QX. I and the another, in between split QX think, of et

us of into Maybe confidence baking you are QX. XXX split from bps What the kind just around maybe of much walk a And through the that RINs coming into the that of and quarter? commodities sort next there? that how tailwind from, in is improvement

Sure.

year. So contribution the over quarter Because because first and commodities you margin things it is to would the tougher, would of decrease last greatest the that commodities from course get about the in of just being the the right? RINs equal, think be year, had way comparisons recycled ramp all the

in XXX And basis so could started QX. if, with of in see that you stepping QX, points or down you XX XX to by way example,

business, tailwinds So the from that that are the and coming that you growing. is really underlying tells

we expect that it also retention talked areas. and between from outsized described where leverage turnover a that continue, we number we're that year, getting QX, as in of seeing had around said, already dynamics about those and we're we've the into that to coming opportunity see cost operating we and said improving different we'd that spread price in And I the

to that, we costs as repairs. on in if whether between and we're growth heads place, margin some overtime the have And starting improvement we've outside more or expansion providing reduction straight relationship third-party in seeing like indicated, things see more the overall and it's the slower even time, that's

for year, are quarter is statistics. the a move we seeing it the the of of growing numbers, what contribute that is follow dynamics that as to So dynamic those improvement. we through see already gives savings QX would the us the that and quarter after we're those that in leverage the know in that's you conviction types after operating our operating And

I to but And just one note more get just didn't would granular. it it, other thing you even -- ask

waste closed in thaw solid for would we our we Canada mid-June. seasonal business, the that to E&P and know, first transaction that due that and accretive in you from secure on the through than goes breakup in noted quarter margin I period is different margin As full business quarter, actually QX revenue, the is the that lowest for the it EBITDA year. note April

weakest quarter. where business, quarter. unlike So business, the weakest that In seasonally comfortably our waste solid is QX QX the seasonally is

solid So QX. the not driving being, is margins is that what It point in business. waste underlying is our

addition plays Got of That's this period philosophical new to helpful. question out the more over follow-up, big a out. many of be M&A acquirers? potentially maybe super Presumably, you set And do the benefit in set. while folks to earlier from how it. to in the your going could in time And a to to about of answer of think maybe the But that terms that play terms market? how a opportunity come Ron, larger M&A quick what the take to adding is PFAS just around the could perspective, an regulation

understanding all that. tell Yes. it is Well, you, one, to and number would early too I

federal change. without it to effect been incremental of I there are driver. It on to think me, the most cycles is does disposal-related decide, has it. question, time regulation comply those directly. And happen. regulation that a course, the folks assets macro what depends But with take traditionally it than it there on -- Obviously, depends for private far how in previous less ultimately of and of excuse were has today

drive tends even does So But it's 'XX M&A. not something an time, over it early that's to 'XX maybe going a -- it to thing. or be

question from next Our Michael Stifel. Hoffman from comes

that about at feel are versus how open your by do fill then in how you training, own second the will rate And is in-house with of be and you control -- get you actually driven things fully would year-over-year? to training? how of what the positions your the point think proportion about sort loaded the Ron, where you

Okay.

XX just So count let's various about cycles. it, some running company X% all We've through involuntary XX, always call turnover attrition Michael, open we a targeted times we're and have natural through of at years then, that historically meaningful, to the course, at head given X.X% being proactive on.

through At at our peaked we as actually worst positions. we approaching time, came and open 'XX, X.X% into headcount 'XX

that reduced have to 'XX down basis. to on run X.X% maybe X%, right we to where We present rate throughout a are now even about

we run. have So we're where at really historically

We have are that X.X% with regions that. we're down level, in and the comfortable very a few

year-over-year We've date reduced That open voluntary reduced at headcounts we've XX%. the -- number. we're to turnover by So by is peaked.

and We year-end XX% getting about 'XX. are entering X, between and XX% now April down XX.X% a target by to of to with of as

we more ago. halfway were where So we're months XX well than target our to from

target. Now to will the mid-'XX, say call year second would X/X hire we objective coming we is to to this academies. in-house through objective, or part summer, That as the believe we be of our be -- those our so I'll what your what call more I come our of our it development in-house would sort that a and that get through of question,

X our target, that's getting X could of that, to it but Now that. in more beyond be

a putting going until their And in itself perspective, this for Okay. PFAS wring it That's while X% are of hands all then about is to revenues terrific. costs leachate out. It's X% X% to But not everybody to XX%? plays

below. actually Michael. fair even No. is a just is actually It X% lower, average. It's

billion the the we're inside to $X.XX XX that a range. And It's that industry. the technologies technologies year as to mentioned, gallons billion a are of gallon mean, treatment Okay. range. I But you treatment an XX leachate $X.XX is

like those not if out the technologies it's whatever, pretreat before or to you to you're So PFAS add quadrupling and managing. take had

about of in in as landfills geography. weather how are lower the variability you're to of leachate place. that the and mass I the know, the of amount I much million conditions and Michael, there's will $X $X capital to No. the what talking are cost on that mean, most landfills leachate to cost And then and size waste great today. you is treatment what U.S., for But of how course, in it is old in mean, million based the they do

it. Got

the hearing my XXXX. Senate Are a Okay. And what trying something month sought should that then the like proactively Committee objective to meeting different about -- a to Environmental in get Public intervention that passed a ago language Works had of than with real anything understanding, discuss proactively look you that?

I the not have do heard have industry Michael. I lobbyists, information and that, same but thing council association better through any than

from CIBC. question next from Kevin Our Chiang comes

year guide, I haven't margin Congrats look I at if full to so good which here and on outperformance. a know you this you're XXX in quarter basis start the start with the your point updated year. time, Maybe I at could If points. just

speaking, I HX, XXX HX, maybe how little even through a the throughout. year, play maybe back think to we thought pretty broadly bit the but would a little in below If in that outperformance bit

through anything guide, your far? know so outperformance math, but HX Just I about -- on we given HX, anything officially updating HX? carrying you of just think given not should that simple performance in the outperformance kind the push I you're guess, back

Sure.

evenly or margin underscore XXX expectation pretty year, with basis about just you've said -- that points expectations in reiterate we that distributed it for the for of was laid our We right. just you're what out expansion. what So talked to terms

in would We half that as course earlier, mentioned also and the said, first of the and year. the be abate I contribution RINs over greater from commodities recycled the

we've mindful in QX be some was of commodities. just of noted, that, I'd benefit So the fact from the as

that And here, you're you to would be have have to benefit. so marking market that the to if then expectation continue

of thing mind outside to other is M&A. our The keep top line performance some was on the in

as And so a you'd want always is given M&A, if is at into that in -- we as it, which factor company, expectations, feels typical dilutive, taking considering in why to a dynamics. we continue we that appropriate updating July, we the we're it's July those think about little as your to look collection want all do is typically which do,

this, the second be That's in I maybe maybe of might drivers the interested pulling you're I'd maintenance my a talked broader knowing And and a waste was development move you helpful. enter of that granularity enough field target about it in-house you suspect question, it's have for versus to if sector, truck And that those X/X. and and and workers picture or question lot doing, Okay. people in a I'm of on back not working between on forth sure bigger some the -- you're people sector. transportation so but

trucking of I adds suspect think that eventually We're your bit guess, move people you tailwind exiting, recession in much I economy a up think I like the looking here volatility more join because as you being a about freight freight just through you to, here, becomes your more the different freight that's starts to are today? than you offer think how a firm. that just Like for ends long little recession really favorable balance? is cycle to Or you it development? do it steady compensation up if for pretty long-haul work becomes it a a and midst very that do think so freight do guess, in-house challenging

different in little but you're will way, a answer take I'll what bit let's a get asking. Kevin. I so Well, back, think to step Yes. it it

who is that, have When X have say employee vicious as driver means I have sought of certified we opening a is that and most us, diesel an another had a by in industry, have either which drivers we for and/or technician, them somebody diesel and or to tight we from employer remember, So or are, a cycle. for industry largest unemployed find them. for course, who steal technician usually the CDL economy bases better CDL and of to a That structure a them find somebody traditionally, we pursue we or compensation -- and to to is a company would mechanics. have our

that is are are type employee. academies they quite we we we doing employee an upskilling from these dramatically are This are of we are. pursuing is What by actually doing where who a opening different

not a our CDL academies. who driving has are bringing we into So in somebody CDL

maintenance bringing our not somebody has into that a background. diesel are We partnership for technician someone school

So dynamic we impact of approach. to so It has of in. this the time, an who character for It positive that often is that a investment employee period know are their of making change a type is longer employee. is with us a we been an

the also We're it from doing people on outside.

their another Depot would a or waste example hiring hiring instead who's somebody a an that it for changes from opportunity say record but totally and and CDL be, a trucking $XX of life as we to X if an someone track CDL, can company with them taking great been and Home it's a another we're with operator company, hour safety them culture, has commitment So I'd us. get and their years forklift the

will it Hoffman, Michael So to that's I ultimately think response it but won't XXX%, my why be X/X. be to

help go into us a which, to So It's I'm we when having approach we're that. it. course, another do, as and we will, buffer if tight with reason less of actually economy, this doing we concerned

Noah question from next Oppenheimer. Our comes Kaye from

the you've of you market around fitting and/or the you're the done busiest last of regional $X profile for I recognition of your wondering Ron, just a ever types potentially more opportunities comments the the year being talked kind and internalization color at. opportunities get Northeast. around acquisitions guess, the see of just model and we the or if billion the could mix quarter this either what that one already, M&A of some now so we given around looking about those the

got our say, we've off, regions. waste in -- solid all is Noah, I there Well, opportunities of that first would Sure.

et U.S. cetera. and X all companies, regions companies active They the stations, have companies, in We in collection going our consider, have would discussions what, integrated know. traditional I those you X are in all signed regions. and LOIs of Canada, we waste as with solid transfer And companies,

necessarily in an the little I'm not incremental footprint our saying geography a there's right bit now. to So some other. more It's weighting competitive probably or

our although several a larger. is as take course, signed Of little transactions well. models footprint and we a longer, exclusive the competitive little have Franchise

the what than confidence we the balanced, which is say year record have that to So it's year, did gives perhaps us a other opportunity, a an pretty we public merger.

core business. is, that Arrowhead transactions solid focused through asset key waste asset definitely August our we're incremental will as said, utilization that improving So all tonnage I of that. boost Certainly, are -- on of and our in that this acquired and we And 'XX. there

the the sort -- Eastern that way up seaboard. from through of So all mid-South those can the but come

will clear a -- couple going it's some we a plate, I the over on. So everyone. next quarters, of hopefully, that of think become lot for And busy have

was reflecting the declare too focus you to business? is point within the you're coming about reduction. to on I start year like call on operational made you've areas comments a the since And retention back. of at lot improvement employee just this later Where your business I And your certain guess, sit question and where a for but things incremental progress victory, turnover the already and are

our thank off, teams, regions and to all get them. say just have teams improvements. our talk made first I you. We local Well, about would the our

look, not -- in thing, drives headcount to pursue doing call week, to, otherwise back, It customer we satisfaction. ability safety. going when types X this It said, our you're cost. continue turnover to drives year drives is if improvement one of incremental drives volumes drives all first It got might follow open. if be able think, that But this on everything. to It because going too I I it follow I ago we're incremental

So it the will help us better board. get across

continuing be down, going focus voluntary that's So turnover. particularly drive huge maintain and to a to and continue to

focus. a that's So

have huge focus We risk. a on

going huge As change. to not had That's on you know, always we've a focus price.

to it, wise then trying positions, I'll continue every and both really with would got at we're a to organically I through healthier that And organization amount we in of the we've pedal the couldn't quarters as And you both afford the to the level. and call inorganically. strain that financially, open tell just get, how do puts get operating were to year because just we growth, we on on ago, on performing, et cetera, the entire that step and ability

on, that. we out different them. don't utilization to of we're about AI that We've things going focus -- style. of it. let see to in working areas. We've us got So think more come continue We'll put when you'll I talk But have the and got change, the about growth. to kinds margin other all a than opportunity our That's complete isn't not number we talk we of for different benchmarks don't

So over room improvement several we in platform next for certainly, have technology years. operating our the

Our next question comes from Citi. Bryan Burgmeier from

this there totally what online guidance it's or XX exactly and last I there? I'm a months is think But know I about assumed SECURE being the XX only back too since is say, I running mentioned company the X it's of if come facilities, now. item in Is guess, the to for soon that's Maybe just Ron, understand. them maybe year. call, been curious acquisition. any the in update you acquired I you've And closed October. some July of better

Yes.

Bryan. thanks, Well, Okay.

of X the one, X those. does we year-end, to guidance those that incremental will number up believe facilities. open So of to any assume prior opening I shuttered not

July, come the we year-end. right we'll understand shuttered potentially right now think of before will open are maybe that I that X but I at X year-end think or better

but maybe and that ultimately evaluate to X openings we evaluate that the X, other continue into to and X X certainly So acquired. incremental contributing probably not occur anything of you'll rollover open we I throughout the 'XX 'XX. will And some -- various will into 'XX, believe see then ones we that 'XX. of

maybe recycled it. for if and stood assuming prices RIN got in apologies where and items Anne, is with prices I XQ? this. Mary it, us for Got missed Can me, last Connections guidance commodity those And what your then for Waste remind question just and you right now

Sure.

So for RINs averaged $XXX and a OCC $X.XX. was XQ, ton

OCC little up closer quarter, $XXX. course did You see higher it over tick ended of the to a the and

So we always mark market. to

the is levels. the they're QX. for basically, That's assumption in So current included what around is guidance

next And from comes Toni our Stanley. question Morgan Kaplan from

rest about going like Toni. with the of This year little the back a to margin Kevin's Lee is congrats. distributed, by the kind I of reach on XX% just looks for quarter, being Great back potentially bit possibly to half Hilary could of the evenly year. It wanted question. talk

what So threshold. would back? to you could happen for get just guys hold to you need that Or what to wondering

think be if year, top on basis points strongest we levels. quarters, all, those Because brought each right? say to the full you I'd in the approaching up XX.X%, just that in Well, First the acknowledged guidance XXX put that the of for we would of I QX, we you gave seasonally of X quarter,

So we've basically, outperformed. we've said

business some is it I acquisition is and noted, As of some underlying of the contribution. that's commodities, some

will to So would somewhere those X there. I variables, level which or the we that say, extent around get dictate to

in saw those But drivers, in quarters again, striking all the with various things disagree that we did is outperformance distance. of I QX, in don't certainly out -- meaning from setup. your subsequent play if And the they if way

that? know early you a do of And I anything guys comment because within after is kind another mind? guess, reaching you guys towards little that though. well it I XX% on might to sight, it. are Or be Got the have in target that,

just there been before as we said limiting more certainly the that never points be to had you because to would XX% we But call some recall, the for SECURE may folks that was almost It we be meant Well, SECURE basis and or about margins. on we've said factor. we closed a may accretive transaction overall conversational before. XX recall,

think already And set tells so I well north our that have XX%. you we head of

we've Hilary, 'XX contribution $XXX EBITDA and said. proposed would in that that And include million of does or say, also from remember, facility that planned RNG not I openings

that. also it not include So did

And Any have lastly, I going regarding update you if on there? franchise to Great. know updates? the just just York guys New want an process. Anything City

or incrementally pilot the city right is, is moving almost operating day Everything zones first Tuesday till that September is updates. Day, real whatever days, basically Xth, Labor the No several going positive. We for for day the XX beta forward of is the to run after of the start year-end. that

delivery taken we back have April performance-wise city month how some see those electric and of the of vehicles, all other begun demo I in the to update in some and asked us would those works of tell you a for to have the operating the that is city while areas.

the mean, anecdotal little these -- right but are now. updates really those I less So are updates,

Our next Revich comes from Jerry question from Goldman Sachs.

is This to just Jerry makeup waste year-to-date. to I acquisitions date. M&A solid understand for activity strong the on Adam of better hoping was Really today.

trying deals? think I Michigan. So represent? understand million did the you And how that referenced Just little acquisitions Indiana, included multiple Was that market in new or a a large to entry of better. deal that one the $XXX bit makeup

Adam. Yes. Sure.

very, we our a Southern Indiana, Waste-Away, Michigan named us. taken Indiana, in border, Elkhart, industry, company, management North transaction known team incredible the is retiring, the of an ownership company phenomenal nearing really place that well we a in phenomenal third-generation in very acquired approaching out that So with was which family was have had

in our X platform, than more about by half million out represented of in that middle that process well QX. any the would of area already and and you revenue as in reported. of of our in I we -- $XXX tell first that And closed XXX we that that tell acquisition incremental quarter. total certainly in that of large obviously And the A acquisition the are closing we I would that stretch, you locations. the employees

improvement then so. in appreciate Can cost we in there's where or lower given of benefits X lag through over I seeing on update are Great. a turnover retention the there? you folks the employee a strong really structure last quarters just you flow color. achieved us And the and turnover have the

Sure.

subcontracting different there's overtime starting to of and we're I with So improvement And third-party is earlier, several instance, XXX some items. incremental in what costs our we've for talked basis business. mentioned, about an like points see on those, as that associated line

basis in to the improvement XX is so I'd aggregate, terms what it the say of And think we're started the that maybe were about of XXX that XX if to to points at we've down I see. in in

Of are it of lag in incidence course, period, the it, prior bring down described paying for as we've that you're current most incidence risk, can notably in the pieces of know which will but we longer, that there periods. even you your still cost

multiple to And be being a a so than that, we're and rather tailwind not headwind surprised but that that takes periods start to continues certainly recognized. anticipate

Tony from GAMCO comes Bancroft question next from Investors. You

Congratulations, question. Ron a quarter. on of long-term more team, Maybe the and great

You additional Or acquisition opportunities talked sort look of they've the Is do large the transfer into municipal where and waste towns longer ever these to going -- or solid with be to on there those maybe municipalities you there? large SECURE about. the is there? regionals know I that other opportunity but how term, always that to incremental you side, for to higher focused, transformational you're made even any Or Energy. maybe more with to cost even something seen have private maybe anything there's operators?

apart Well, so little bit. let's a that break

same but beauty the exact So completely on transaction the mostly the XXXX you was as It inverse. since the XX% The it in was U.S., SECURE about size the SECURE E&P side, side. as in we production. we the in U.S., what was business drilling the strongly had know, on had been of

so the size and the of like combination that we And those like we that are. balance,

our will waste, naturally a core continue in company. percentage And just as solid the we grow smaller that to become

years believe, additive. opportunities, U.S. incremental we'll nice However, smaller, space. they're having and we They're have those as the some we many said pursue in last in have the but that we that, they're And to over continue

Now for at we have well. space the this Canadian market to look as

to never would do But because in as say you guess I look, it's saying. think mean, you it then never close I Tony. I if as transformational, anything as never you I far As -- regret can something. come you

future. That's Look, be we've we in well, That's And runway fairly what in it. are, know waste our what for that And that's competency. do We the be. we and want to that's we of sustaining and how to lot I a are got we think perform it and company. well to we indefinite solid core know a space. going what

that. good certainly, regulation and look assets, a are I exit We'll local we'll we know something said, governments look business, drives And at to to absolutely, well. or This entertain is things. as those certain things if

because similar opportunity. pivot we thought and financial we And into characteristics to core looking a saw be opportunity in of take that, if performance we'd of not our terms lack it. look business. in we're had a defensibility It to only But growth and at something differential would it hard due

Our comes from Securities. next Sommer Truist Tobey from question

Jack dig patterns? maybe is This into Can those sort those and for normal seeing what we on you're headwinds weather weather distinguish from Wilson of Tobey. seasonal

the most It North -- in the shut Sure. here is particularly, like weather look, high, both it occurs call I'll temperatures mid-South and quarter, course, West or had -- a harshly January very nothing of we in we first But start it whether to low very in the and run. we every Coast extreme our and let Southeast so that occurs parts very the year, the down ability and of weather America. frigid new, not. what in

is run We deemed could such Department or not Facilities operate something had safety at Oregon and completely fire example, not weeks employees shuttered, to of in could we okay? markets home, transportation. all. as nobody for abnormal, great a is those police because that X was X the other. disallowed states areas That and within That or Transportation

when by handle can we're we that's violate. on We to cold something But handle we're authorities the not be weather. snow. not that told road, can We

we for of inches in could shut in had a player down Alaska Alaska. Alaska. it's snow And largest think days used the significant if not XX run. in anywhere we period that we're would And over you Alaska, to Alaska, is X-day weather, XX

in to So just closed those geographic it what we're are the prohibitive examples that that weather of areas. referring was

Okay. quick follow-up. And one then just

margin possible achieve it might If that sort role in-house you quantify of upskilled have? sort to fills, of X/X impact is of do that the

What improvement No. believe think as no. would is margin how say part say said, it's from is. of don't I The in we it we've initiatives. incremental is basis plus, employee XXX I would points these answer there's I

a you you're life. ability a company stronger I too pursue those your overall and that your ability to your service now of quantify things. price a just consistency fully then right event your because there's are that balance think everybody's there's things retain in the staffed have pursue, to just of in ability because And kinds of And difficult quality, to can't price, to just more lot jobs

exact that impact what So would margin we guessing only be right is, now.

final our from comes And Cowen. question from today TD James Schumm

do on give due other expect ancillary cost the Could to you quarter. are estimates an to And How have Canyon you landfill? relative Nice to to revise expectations? tracking Chiquita relocation perhaps higher, expenses or your update charges?

Yes.

I we a a perhaps where point, Chiquita thing about may would actually would at this but that's than that headway little tell good be think you is had it means little in a it making planned. So a we way tracking faster ahead, more because we're

that you're now right -- What what done we is every so is or of accrued XX for it is once change believe significantly. to this we on our that accruals $XXX review just terms closure and not don't engineering a there We've aware, are million presented do, year, the going based that something, we -- in and years, change post-closure new. year and We estimates.

our Chiquita a is in to cost it's this the of closure told because have And you, a as landfill section we landfill. closed

changes So we be them. will year. review it, they them. a expect If are We would don't that we once And we'll communicate material. there if cost material, make will they're to

at for is not one and -- every So our years. different than and we anything do have of landfills that XX

an a event. would type issue surrounding time. where known it's is more be Chiquita about point But thought because of California we is that public tracking of at So well and Southern this this everything in larger, it more

is into far. to we're a only there color to any but recognize there? I provide that know And weeks Is normal you thus Great. few Okay. tracking April, QX relative wanted how seasonal can expectations

hasn't way that early it's weather or of probably It outside of suggest forward look asserts else us see the normal that to we've the said, would out. but say, anything been our and nothing on we seasonal you extraordinary. the change too how As But to thinking anything guided, ramp that cause sort letting quarter plays quarter. certainly to we'll

any question-and-answer turn and ladies today's conclude the with over closing Ron back to for I'd Mittelstaedt And gentlemen, floor to now like remarks. that, session. we'll

entire no your under available answer and listening in to team, behalf further we securities applicable allowed there appreciate if that to Ann management call the are of answer cover in questions, Box any not to and questions that Mary and Well, today. Canada. we today Regulation FD, Joe Regulation are did G our we Okay. are direct laws on interest

our to forward WasteExpo, you at investor upcoming look We or again. you on earnings connecting Thank next call. with conferences

presentation. conclude we'll that, for today's conference with call gentlemen, and Ladies and joining. you We thank

disconnect your You may now lines.