Waste Management (WM) 25 Jul 242024 Q2 Earnings call transcript

Good day, and thank you for standing by. Welcome to WM's Second Quarter 2024 Earnings Conference Call. [Operator Instructions] Please note that today's conference is being recorded.

I will now hand the conference over to speaker host, Ed Egl, Vice President, Investor Relations. Please go ahead.

Livia. you, Thank and second everyone, for us joining Good XXXX thank earnings our quarter conference for morning, you call. Operating Vice With me Executive and Executive Executive Chief and Chief President Fish, Devina Financial Chief Vice President Officer. President this morning Officer; are John Jim Officer; Rankin, and and Morris,

the today. the overview, a You John strategic financials. will them will hear details and high-level cover cover from comments will prepared operating Devina update. cover will financials of of an each Jim and provide

started, and get we at filed on we that Before please the have website a note includes that earnings our www.wm.com. Form is X-K press release available

In addition, of The is Form our to and website for presentation rationale the X-K. additional we company's as release, the the schedules at planned Form release investors.wm.com important available information on and press Stericycle. supplemental an presentation with elaborating acquisition exhibit X-K, on supplemental strategic information. published have press include the of the the a The

will you to risks which about cause forward-looking subject are call, projections, materially. are statements differ future uncertainties periods. the that opinions to expectations, current hear actual and could or During on All based statements, results forward-looking

and internal filings references in which our Form specifically yield or Some and risks or uncertainties in are volume, unless discuss our SEC, more most will XX-Qs. John volume. stated growth are to areas the press of yield release the IRG and discussed our of recent Form these and otherwise, with including today's revenue XX-K from in results

of performance otherwise and SG&A and and John income Net the from non-GAAP is on www.wm.com at occurring company's Please or free p.m. margin, comparability projections. This in and information at amortization. Jim, the income, GAAP with is any by margin at and website have refer flow, that this operations To EPS, are earnings press is comparisons, July express today's of operations. These will accurate Eastern use expense results which unless operating will being prior today. our not of provided do income additional and our will reflect about most tables, www.investors.wm.com. be which replay the enhance measures management the results operating call, measures. is which measures fundamental the longer before reconciliations comparable cash non-GAAP XX, to prohibited. measures, access be and the WM Time the addition found items website beginning call, discuss and call EBITDA a certain the time hours Time-sensitive day XX Devina during stated, Any to year. without call, margin, the on be believes call release or replay. and excluding written of and depreciation EBITDA, WM redistribution, be consent to may X:XX approximately for business non-GAAP from no hear a of recorded a form Any adjusted information in operations retransmission, been available of adjusted XXXX, rebroadcast During to can

to over Jim Fish. and WM's call turn Now President the I'll CEO,

Okay. Thanks, joining thanks us. Ed, for and

year performance quarter. with of outlook were results. the from positioned half the by and us operating double-digit time quarter, Quarterly fueled financial driven first strategy. We're performance to EBITDA second of operating and achieve margin for year XXXX in growth of strong once are technology in the deliver pleased sustained by history, our results effectiveness for company's EBITDA and first we quarter the operating our pricing investments disposal well XX% that the reached again efficiencies another pace provided business. Our operating the the keeping We achieved in full the to in collection strong on last

our another growth we expected our on own well by to approach year. the to it's by acquisition gas adds solutions, future Each position where throughput has expertise approaching attractive capitalizes XX% plants is costs. environmental the leverage operating our A gas agreement waste these to industry. waste growth benefits lower in of big growth. Our need are Stericycle drive very medical acquire team strategic these benefits. can operating of technology of in on or the is platforms to accompanied part using financial opportunities now executing Stericycle our landfill a announced recognizes priorities, to our our further future EBITDA strategic to full renewable expertise, for automating suite evidenced find leading drive complementary routing growing a to planned whether and recycling into and greater natural it. And leverage efficiencies, and The higher business recently comprehensive and to improve strategic presents turning our leading as opportunity

progressing regulatory we're Our members and planning, welcome integration excited team team process and is to WM. through the approval Stericycle's to

new and complement a collection business within existing for add our to business, vertical position we to waste as we disposal Even growth. solid our our waste as continue network medical future

opportunities As into tuck-in solid was for acquisition we've XXXX. the coming said, strong waste pipeline

completion, through like Our operations York, markets, more transactions in in in and $XXX closed our and collection July. hard of new than and New North tuck-in we've move teams core geographies to operations growth Long million worked existing solid in Florida, strengthen North Arizona. acquisitions waste Island, through disposal These tuck-in and Carolina acquisitions to complement acquisitions now America

our growth also continue well sustainability execute on investments. sustainability, We to

to renewable natural facilities adding in new projects to gas X XXXX, bring expect We XXXX online XXXX. and in completed the X new

the strengthening our to as payback M&A, energy is core collecting better beginning We're renewable natural we're excited at about assets environmental this traditional we're and year. And our partners. -- we're X more in directly X have of our Momentum by building meets expected than periods investment platform of using landfill begin criteria. with gas. strong the positioning making. later Investing all and another progress we're expected expanding We X benefits projects building construction, or community in facilities active gas our driving with multiples returns on remaining plus X business construction years by beneficially landfill or

development that scale strategy transportation leverages network. exploring alike. opportunity maximize renewable marketing returns, opportunity in from create of for the the business markets scaling efforts of we're balanced renewable and and Looking energy and our value demonstrate the to environment this energy commitment long-term our voluntary to we produce At continue manage future through value a project we shareholders forward, same These the landfill the time, the and to volatility. to across risk unique growth secure our growth reduce

Turning to recycling.

during and to We XX% differentiate automation up customers, complete unlocking automating facilities expand XX%. financial completed New and increasing existing with projects cost XX% network add new improving and capacity in the in building blended investments to in is Pittsburgh automation XX% Portland to the value commodity such year-end. are our further in consistent projects second results, and and At York, sales opportunities ton and per our our on time, facilities ramped both Atlanta Our automation helping to providing on recent another our investments same facilities labor quarter by successes new as X new the markets by track WM by Ontario. We're quickly. Florida

from X to first continue balance half is in are year. the WM capacity our our million increases We XXXX trajectory positioned delivering on recycling achieved of strong of story of and more one the our that tons. The date commitments. to progress investments during Our the by than results

dedicated to As on our bullish for enthusiasm long discussed for we year, It's kick Based all team term. this the next of possible, off them we today, I contributions. thank we early all particularly our want have the their about of makes planning on process some and opportunities XXXX. all we're that

And to our operational I'll call to over now discuss the turn results. John

our optimization quarter our of operating We're pleased Thanks, particularly good Jim, ongoing costs. results, and morning. with second

Our in safe and customers, teams service delivering and thank early dedication, I impacted July. areas Beryl especially Hurricane in remain for intently to to by focused reliable those our them their want on

business disciplined with Second expenses management overall testament of second year-over-year operating to collection significantly margin pricing, improvement expanding disciplined In EBITDA margins. we revenue with disposal as to of our enhanced percentage in by XX.X%. business. million This costs in expense EBITDA is Combining strong and grew to operating XX.X%. basis operating quarter, our collection our operating performance the quarter lines $XXX by of a improved points operating XXX a our

automation Our a key of of was continued driver technology and these improvements. adoption cost significant operating

and X quarter. for in the largely advanced technology, Specifically, tools, by routing in mapping our scheduling of of automation. collection efficiency planning improved due of In efficiency QX, fleet of X% our across to lines dynamic use capabilities, fleet resulted in consecutive residential the business of our second labor, nearly expansion and automation residential, improved all

margin in when XX% automated improvement, efficiency Our significant operating achieved last contributing over residential to year. compared EBITDA increase to routes a

improved improved which Company-wide, turnover, a revenue. to continue our labor integration of as We expect year costs the confident efforts, focus labor cost retention driver percentage the to in led remain and of points technology of driver reduced throughout to technology from we improvements Additionally, basis XX a and value year. our driving and a basis optimization the reduction point in ago. people-first contributed XXX

results financial and as and structure continued a committed of improvement points, cost to technology-enabled improved reflecting our by point expenses revenue. basis operational of other both adoption We so costs to Turning percentage growth. the objectives, as we're turning our also finally, of Lower a XX have we fuel achieved maintenance far. And to operating contributed an costs. and basis remain schedule. truck processes percentage proud spending and delivery improving Repair XX optimizing operating to a revenue meet to revenue of

line full year continued to in Our value organic from customer model our revenue expectations. with price growth lifetime drive

expansion plan focus track, our customer-specific Our objectives. with margin on pricing price continue and to decreases, outpace and reflecting to data inflation increases pace Churn and to further increases service keep results that remains insights deliver using execution. relative remain X% our reinforcing team's at on

when Ian waste the collection, On and special our C&D to line with the of volumes trends as cleanup are year. lapping generally the quarter last in in commercial MSW volumes and landfill expectations front, adjusted in for Hurricane related strong volume the remained

a our is business Similar to the roll-off quarter, by business our segment. to we to area of driven continue as roll-off line well permanent in last business in of a volume portion softness. moderation industrial of we temporary one see in continue However, where see a as both bit homebuilding

want performance far strong I deliver financial for disciplined WM execution a revenue year throughout our confidence few combined for our full While their our the that contributions. cost management, ample with so success. entire volume the year. In XXXX performance up bit give of in to strong us to our trending segments optimization we rest sets us on closing, to expectations, a continue behind are thank continued of are Their the positioned collection again team

Devina turn results financial now over to in the quarter call further second I'll our detail. to discuss

metric strong the the financial EBITDA, start grow XXXX, with puts we X of XX% nearly Thanks, have full with growth particularly operating measures more pleased our track: than X% operating cash we year seen us good we to John, deliver and and X target free first the on growth, above margin all XX% This of this to on long-range months, track Through EBITDA X%. organic. EBITDA EBITDA. well annual important when most of morning. with We're focus flow. Starting outlook our operating being operating to this

As EBITDA in would that XXXX in it driven outsized projected things. two our year's setting then a increasing reminder, quickly million and growth for achieving April, by this by target be we $XXX operating

tracking, includes toward we million would range benefits year. $XX in expected contributions growing The our which and projection the the This which exactly cost is earnings is year. first first growth of renewable billion. XXXX from or of half tuck-in our to million in our the This the price acquisitions is energy is $X.XXX of meeting for weighted exceeding the operating with of of the being our second And business, confidence waste recycling $XX incremental incremental half weighted guidance from and giving be EBITDA how solid optimization the in businesses, in back and us investments midpoint collection XXXX. current about to toward be the disposal

a from of delivering again this and cash of that nearly months offset and highlighting second operating free collection XXXX from the the company's and technology our the expansion first And core nonstrategic compared looking in the operations and XX% and the at history. key use the the business of strong by operating holding. The operating Turning same a results we point we now XX retention, The XXXX, versus half in risk flow about is and in to management from started XX%, XXX truck process EBITDA points. These margin from and Through XXXX. cash in from results compensation modest growth we've flow expanded best XXX margin is employee increase by quarter, $X.XX in total business and and QX billion, EBITDA sale X of recycled that company puts increase significant the an see and basis and efforts an takes business, worth was or points, deliveries, margin of takeaway prices lift optimization operating optimize year. incentive generated basis partially assets of were period saw our higher disposal basis these the robust commodity EBITDA the in at XXXX price margin about expansion last fuel. of margin that of second that's operating $XXX million EBITDA to driven benefits the was of in cost costs, a to growth. margin. In net points XXX It's and quarterly of basis benefit impact then drag costs,

Our capital operating EBITDA double-digit cash incentive performance. lower are growth, driving compensation strong this favorable trends, and payments working

will spending For were business Both $XXX X and slightly all guidance between confident in of the $XXX achieve anticipate growth and the half free Pulling for guidance tracking at billion plan are of totaled of or cash we cash Sustainability our support about range XXXX. the of investments the of end $X million. expenditures sustainability prior billion and the in flow to our we've XXXX. growth generated of million that year, billion we're above capital first free $X.XX of investments flow the that high $XXX year, million $XXX between in this together, $X.XX first months million. we at

As this fourth to July, in $XXX than the forward Jim quarter Stericycle mentioned, and we of as through as tuck-in look the we've acquisitions acquisition of closed million early year. closing more

our capital. our allocation invested opportunities, priorities a and recycling including growth businesses making grow investments commitment has strong sustain M&A capital return provide returns waste and to healthy above expect and capital sheet. Given we're activity, reiterate our capital a that investments all on capital assets. We allocating elevated grow emphasize renewable of cost strategic to prioritize WM decisions, approach making solid to energy and we want balance to and the to core our we in disciplined our to these our of needed to our

we all WM very for at team because our repurchase Stericycle, X.Xx our the to of this questions. announcement on tuck-in revisions credit updates of that know strong elevated the leverage The XX of the X.XX the projected after results, be our Stericycle that for range our know the since leverage in our remains returns, also the commitment Livia, profile. To XXXX. open we're expect debt impact our debt acquisition on leverage, close strong includes now year. With bank months reflect wrap additional solid so the waste in Stericycle program our we're We're which million to of and I funding of the cash of figures deliver of committed using planned increasing value remain our suspending Xx about the acquisition light to to the steadfast are close. In We of agencies leverage work with as a intend back We line notes. growing that, free shareholder of $XXX acquisitions and our grows. our up, investors dividend Stericycle. activity to rating share tuck-in of the When flow and transaction to pleased impact we goals of with layering temporarily finance about can this let's way senior to we combining combination investment-grade the work of post targeted slight hard

And Instructions] from the James. from line of Brown [Operator first question our Tyler Raymond coming

so quarter, Devina, the to solid obviously, a start great year.

north margins QX XX%. QX, Looks of in I in around of think XX% north more mentioned call, possibly in QX. XX% last came you like

moving a a down just see of that north or that we XX% I wanted to smidge? think is maybe good about So should if placeholder, still

highlighting of quarter. points end spoke basis expectations risk one I'll when So by than April about management of a was start little XX% impact QX for of we item different our the north the in is at that that that the XX the

I than item things. when had So One on had we that QX, forward there's couple we have to a we that not if is of call above have would little look or would which bit, about at the in we time. What couldn't target last that provided the changed regard a predicted, what's recycled come say elevated I have of to point with and recycled and year. of prices. a geography back different was impact competitors into know continue quarter, a commodity the prices in commodity headwind we prices, we commodity And XX guys that do half expect the the our to basis you the

headwind So that, in carry of on there XX% generally industrial bit weren't brokerage is would levels. volumes over. And we lower that mentioned, is from projecting particular to John a with the in industrial that recycling volumes strong addition little then flow-through that a

that, again, and one in impact so quarter the created headwind that And the is a of that would QX. things

to third acquisition the relates The contributions. item tuck-in

our on we come to processes, at innings revenue in, activity based in As contribution in M&A and early you are base lower a tends business. integrated margin integration than know, where

into So what of I with those taken account. outlook range say is XX%, in the now, is QX all that XX.X% to right would our things

few quite things. Yes, a

about perfect. we EBITDA Okay, dollars. as think And then

acquisitions. to moving million QX, sure guidance. only I $XX of at had spent believe Because So like I understand want to the just I you end the make maybe on the of some pieces

would I Winters July. obviously thought including have would through Bros. have million $XXX mentioned that You that,

that. there's maybe I have would that helped assume EBITDA associated have the guidance. some I with thought So would

you contribution against be So takes? mentioned would you revenue the year a M&A few you. I about then some can And And breaking and EBITDA one, there's talk some end have there. just maybe from what about there Maybe been have in thought the things can contribution again, Because you I of something. puts guess, 'XX? should talk would

acquired. Yes. we've of in revenue the that John. about Tyler, did $XX of end about million represents mean it's of that -- Good about you what I year. put million $XXX if was that we was talked the QX, revenue it question. all acquired at we look million $XXX by The

a clarifies some is I talked year, is referenced. $XX-ish that in that of And from hopefully, be there talked the So back that benefit we've and about little a Devina to some then what about will bit. million the M&A contribution of we've the that half

in year, right, in the of half the that the $XXX corporate overall grown the year, I half remarkable. waste So of and management, EBITDA solid terms we has would for of talked when it growth year, say about the look up the in is other at risk The million, category. what EBITDA shows first I headwinds quite first

the commodity the the put a quarter, may the as incremental business. the there business, waste that -- about the over quarter. But is And the projects in prices the in that and an when to year. of happened some One second renewable partially $XXX recycling what the offset more story. the than growth EBITDA that was really businesses, increase higher we showing so first amount. you offset not expect experienced still value that is of of in -- slowdown generate we sustainability the first from solid see track a to a in is It value construction direct what contribution be in million on energy be of to think expect second impact by what we And quarter up the take on in to we

now to talking is right? more we year. start fourth not we're expecting expect earlier Now in what of half here, months contributions This to ramp we than were second the in the the weeks, that quarter

plan sustainability approaching growth put coming from contributions I story from in business, all, in though the that waste you the in business, all for to according tell most the of us coming So there tracking with was total the XX% and a is what is year still EBITDA and solid take. would the

So Tyler, Jim here.

Winters give over last just you revised referenced here. our color bit guidance baked forecast guidance me some gave million We had billion which in little that. Bros. Let of of has John months-ish a and quarter, we'll Winters some But that we of extra the that our in kind of we that X what Bros. $X.XXX talked $XX get original Devina about, baked acquisition, $XX number The of can't million I the into already revenue. M&A is EBITDA say

going of you're So that. part get to

get get, get is to way, to going said, as mean for working you're pickup. the ways some of which Devina sustainability I we us. stuff, You're going the commodity both by some

a XX RNG or a said RNG couple also impacting We -- as delays for year so we X us. the of that still are some days seeing the would, minor few plants. plants building in but we is We're delay of

So all $XX million. the up adds of that to

volume growth. in think strongest company we grow doing by seen. really probably said aren't more XXXX, Remember, though, would XXXX. But than was things growth. XX%, XX% to the X% robust volume past. EBITDA degree, along, and from and I'm in growing since said XX%, growth. Same feel the that's have end back economy to I yet, is story we And that between tell, at a yet EBITDA I when strongest seeing a almost great like kind point, X%, in X% we've we like of growth is And that here. last for all be X-plus volume. EBITDA growth. that's flat that's from grew the almost all going sometimes talked it in got range, And the XX% feel coming top organic that We're Devina's some or we worth $XX about on stumbling EBITDA XXXXs, which economy an sure XXXXs. we in EBITDA because it. We're is we've X-plus really coming whatever we for and I seeing ever the we're you're the to I the about where yes, last the by and that to we're great not we're number almost with mean we've except those reiterating growth growth. us, percent storytellers percent really by almost honestly, talking It's grew million-ish organic year, that's of year, all of

that to call You a EBITDA a bottom pricing remember impact going to the sustainability, efficiencies, the the that's technology are on growth, coming the and and years like, years on You talking of bottom Jim. going probably to remember we're stuff. And processes getting couple of commitment X great, line. We're you earnings growth When I all make ago. smarter When percent line?" we started to in impact "Okay, and X-ish analytics, are technology of holes put basically with ago, to we to got like comes operating waste and improve in and North going XX% same price, through got bring the growth, Stericycle basis going solid points commercial, is on strategic really bear questions at growth get we've where we've we about it's the really we're revenue strategic synergy for we're see data go And XXX mean or going got to all of still see resi, the seeing we've fourth margin you've like kind list, you comes mentioned seeing medical opportunities we're We've significant industrial, that my now line Stericycle. And I business seen space. doing I a of trajectory Arizona. And where medical. like all to us. Florida, script, could adding with then we're for then before got it a are Stericycle higher Texas, deck with Tennessee, acquisitions. on than from in waste the down growth. the weren't Carolina, in absolutely some time, positions strong filling place,

we've not bullish basically that, XXXX I in gosh, I all add a when those and I will gets these have year, up. or you by my sustainability mean of me Tara to give think more XX% So the end you be we'll we spent the have XXXX, things could very we're February. you, X/X $XX investments. will think excited about about number. And capital the about million which probably of when But guidance EBITDA. will we of only realized tell

I So November. Well, And have matter gets matter in whether the it whether it we economy is up down. to We'll have it about matter who We're to But year. blockbuster year in don't doesn't consider gets of or February. going blockbuster be geopolitical but elected care top year this in doesn't problems. XXXX, doesn't elected we talk on a a that's in what who It do, XXXX. November. I

So longer a everybody to but bargaining think I queue, you first that. were you when answer -- when I the were just for than you on in bit got want make sure understands all

we're but it. kind the split too hairs that business, I of color. appreciate to I It's in really mean great. much, but I don't appreciate

from Toni coming Stanley. of question next Morgan Kaplan our line from And the

Toni This is Great Hilary Lee Kaplan. on quarter. for

in inquiries all? elected on couple your had surrounding of RNG to projects? increase/decrease And speaking the but of you would up, see be RINs a it and potential the So at implications expect it. if who's House, or Depending or how sorry of potentially we've of what bring in election, who's to sort number RNG of the do affected you

a think important related really XXXX. the RVO also market shore different have really We've Sure, on development lot the that up. RNG seen seen than plants. you've previous what's very place we the that obviously been Trump voluntary time answer to I a in more very as we're And through we administration, closely. is in We've to business I'll in note were And tracking one. our this

really any that that they solidly that Trump cover per know, look don't a a decrease RIN well you above potential And in that range analysts as in you in pricing, if at thesis MMBtu. measure, So most saying our RNG $XX by really more are expect is significant the $X.XX investment presidency. industry, of

really who's I we've So but tell office, about in Tara of any no did Short respect short saying, about of absolutely she's it well agnostic coming agnostic answering in mean own in right. job business regulatory we tomorrow environment. the does is, are it's matter a do personal great and in just well our landfills But closed itself you, any the have we morning. to all just Chevron always whether whatever would about quickly, I and with regulation, just somebody that preferences, that. pretty Toni, real environment. we we're that, are doctrine, pretty said of

color. the And Appreciate Great. it. question. just a minor Got

happening or not growth Beryl line recently, Hurricane really impact top with impact? So significant? volume Or you do sort of is expect any that

insignificant. they've reviews who it's had the point, We market be material. But made It's this at was the quarterly to and expected business projections. hardest our hit not Texas with

Wasn't insignificant [indiscernible]

Yes. significant the more We felt all business. than

as my significant the material. house, be far More it's going to as business, at not but

question our line the And coming next from of Goldman Revich Jerry from Sachs.

you has I the company historically, wonder Stericycle, on Jim, if really push struggled because just could to pricing. weigh in

I And are think in pricing that's because and been returns. obviously you and business. folks autoclave driving the of your businesses leaders

have for through the on your just if wondering the on business impact strategy maybe your ownership. pricing back in and how I'm you you an that can onion market So peel could folks discipline

tell visibility as fact systems those lot hard the give to a will little lot like boy, concur the you the absolutely at the that. Stericycle -- I mean I systems, we all systems customer talked give out And they're our Yes, fact tell is we about point. has them level. of way better that down thing One roll us with visibility. it's can a a that that at Jerry, new they this

chance we be with So that we and know kind we you the the analytics our know pricing terms better don't stick point of at because do But under the can means a visibility, with haven't of that this covers. data the head in really to pricing. had smarter what and

And And outlook, think in still your forward. the what's inflection the the a forecast historically, of is sorry, terms has driving talk volume on medical view? you I tougher much than result the what is about going volume industry just in had waste. Can this

where the just for business I look I would at go look the kind you But most in starting are countries Canada we is at the States look look through medical looking had And U.K., you really we part, tell things. integration not United industry, older. public at again, at Germany, waste but outsider getting looking at medical you of don't Yes. I -- or think look those and some mean about this own process just not an because any the you are of an or that medical to we as mean, really, we to yet. all kind at the documents. if services, We're we're country, I France,

to for volume positive you expect seem that that, industry. at And would a similar waste in be so commensurate a services would the see pace. And of that increase with medical to

have bit So look at a hard good sure me do of future customer -- their say. think moving be base. we expected, strong that national slower say, to customers larger to volumes They a are helpful it's that a account-type accounts. it. I kind it trajectory we're look towards the of of than lot at do customers. national been why this a at and very for start have And their very will is business I look But at to volume should this have as

growth years. of been X business really our over national XX the Our kind a driver to accounts of last has

quantity as more and think large from wheelhouse. at the to large and look So that, going like right in that's the UNHs generators, quantity their generators companies our that's you I HCAs in part business these small

it management more? I nonrecurring in period is how in can Or costs out you might Super. that of quarter, just risk one what of the And on the can versus Devina, of those? expand ask in It terms much like this normal us? costs. the seasonality XQ you're lower that to the from in headwind like outlook on looks feels for XQ, the base with includes based applying sequential margins linger risk

So wondering don't mind. you you just I'm expand on if that, if could

Sure.

incur in most business the trends. important that and there is is every representative repeat. So job in resulted business. we quarter, our of this safe where in It time is tell second the to X, members safety It quarter reserves time, not we can, home do. that in not with day unfortunately, significant of to of the representative that, incidents were I associated all expect long-term we something we what we that experienced you is second the in incidences some say is And getting from terms would our of more that a priority some team

So not of period. out would I say nonrecurring,

And roll-off trends, say would one I this What to difficult typical the for I and cautious have I with upward. seasonal we roll-off were talking that drive going up mentioned pick quarter. to third is of would us trends really can we into piece what's trends and regard did see big that seasonal to seasonal is as is and the Tyler about see, about margins what that well, about we volume not the expected a are

MSW really, get the growth, we've commercial Aside in flow-through continues execution efficiency particular, do levels really of expect both benefits of in be and line the that, really traditional and higher those price from from gains you terms volume that had. collection strong that from business, to we strong

expectations of very that continue impact. roll-off with the seasonality are the overall, exception So muted strong, to we expect and

coming line our from And Kaye Noah next Oppenheimer. question from the of

Not hoping is turn I million cost there. you're Stericycle understand you again $XXX to this what realizing just or but expected to questions call, deal trying The of referencing, course, quick into line time ask greater for or X those. the synergies just to X want

rate. run about talked You

the currently? later point So it is in get the that to thinking it about How year? you are run Is a it this in basically on Is something XXXX? in at you rate earlier some year?

said right at is We do didn't is like of Yes, into at our what to Carrasco here who's officer looking be $XXX this of so a for kind for And of good the us. question, really breakdown the process million a of We start. it's the Rafa give this those. running synergies kind Rafa look we deal. Noah. going realize when

know the XXX looking built percent obviously, where line. year piece. But SG&A areas of is think guidance even way, X%. And as whether upfront, it as $XXX I for of said SG&A points internalization that the the line, conservative you a you their think the benefits basis as some I just the couple said those, pretty and We've you do a on the side. not of at. was we point on, the -- some if XX% X% It's of ours what revenue. Some early on also at million is can is. you the times, do of mean in you kind we you're math to say, run just our to SG&A at we're that, that's And them where you get Devina SG&A disposal a by to to know some but probably should compare get

Our areas run at like X%.

than twice a X. to big it? So is right, number? And but it do most get the look to do that? We've said $XXX may million as I in X get Is we is $XXX team now that's are what what million? year the get synergies all bigger comprises that when of have of to you as doing your then much some determining like? point, do number kind mean and the But you and can there, years coming Rafa right his $XXX What what million. math

yet. That's in. it know have most may digging X. We in coming he's where You don't quite year of

a bit We this. will quite on color more give

on we color First give give of color more all, secondly, in more guidance give own we'll we when it. business, the And a lot February. we'll once

are is data of right think that the we the expectations Stericycle going that and at well speak would for as timing move why the great and a with did quickly to respect how as completing we that's that Jim the are business. And pace at enough which their there a of is they where can ERP in ERP we implementation. has I journey saw the us journey, we we're to some from is reasons reason capture you ADS and could not know think just outlook. their as Stericycle time to to with they it that implementation work been that when order be cautious fortify an And this in synergies we about of know example I going think you really But point, on can now one able is about Noah, job get of team on that be us think our So thinking to terms we helpful in there, in that line position the can. that we're that to although one to articulating fast differ

Yes.

in more the there investing well noted an looked look $XXX in minor points What housekeeping A I was something fair the about. that? was other. think question. and line, those SG&A That's on of are both very hearing outflow we to gap. forward million like roughly It

Yes.

period million Stericycle unusual the of it because XX-Q. But disclosed we of and lead-up the material tax-exempt we about and -- of had we were a marketplace. will it was basically, could acquisition, be the $XXX not to our the the remarket So with in to in announcement activity, nonpublic where specifically information, bonds

or time. short quarters, additional place those that had and of then we what will into to the third that have since been have in fully for that back successfully to. We've fourth the through happen we July. market the we remarketing That's activity in year. end could have relates tax-exempt our where remarketed own back And the by already bonds the repurchase expect place that marketplace ones a period So to the to of gone

just to, into to high-level I on Organically, still overarching And And growth. I the guess got deliver business, what Okay. Jim, continuing around think speaks you question the before, you're one right? it outlook.

as spread to to and what's soft a being continue outsized kind to this of able to 'XX? into continue. parts your seeing You're economy view into level of around get of spread an The And the price the the volume-wise be healthy get market your How seems of we cost strength is price-cost somewhat industrial. consumer?

question. -- it's a rebound consumer a has the of and the part. has kind think great been look, COVID, through been all blockbuster a of Yes, it through been resilient this, just pretty bit a hasn't a certainly of And I and through economy, through -- bad not encouraging it been The it's that's been the a economy. consumer very but hasn't resilient been

of business line has small in volume reflected behavior. has margins business. our The improving on more John's really consumer on strong space. medium shows of it been the not soft by fairly is really are has Resi kind in real commercial. The line Morris. for John temp industrial think up by of but resi softness And been side. really that and driven driven I commercial businesses, our more that has been been look which Resi us in working been when roll-off, you at

pretty If MSW because at comps Florida good. last year. Special but of a been numbers, waste is soft, has difficult has has the good. you our been lot that look just big C&D of quite hurricane been

flat kind to you to about we're in the X% at not XXXX with the tell but seems volume, talked strong. to resilient, just So actually X% be Day. be that Investor would last I that we've of the consumer that not it's disappointed seems fairly

efficiencies in when So that talked talk bringing real all look, a lot talked the point about of opportunity on that's this. you that bear. of about there's the really John's here good operating for last quick Stericycle. operating that We to the waste a we're the much solid side But haven't I one bringing technology us. Yes, side. we're the about think space,

trucks trucks. waste has we too, run because the medical way All space, in same run application they the of that really

coming next question of from Burgmeier our And Bryan Citi. the line from

a items. of couple housekeeping Just

of into just and you sounds think, clarity following the for any on to maybe shake XXXX? the end XQ, the XQ, And The can question. for teens then in of year? was low in out It on the up that's at the you risk correct. management margin headwind we kind it roll like So XQ. Jerry's moved high tax provide if rate going think is of do the I the XXs Where remainder off

Yes.

expect our question is rate, basis that would that will is the based. magnitude the headwind item we this you activity than in complicated you clarify terms of for actually credit it nature. it I is It's answer is you there the was that million two points a that's QX, in in to is QX-only is service tax any then item our was more I be management of XX estimate XXXX gas $XXX of I for you not facilities, but as to right say of tax With there what see important little in now. And things. is investment when dates year. we if risk or as what renewable might natural would change item includes related best Tax detail statement. of place for Housing timing in change, Credit the you anticipate. projection the Ed change And if a geography something and that because the a has tell So XX%. I'd that a describe to that because second One actually in a in exited And regard would slight But could benefits our effective recurring you would like. investment. income that our change to talk with the on Heather Low-Income impact the of tax rate more are on through and accounting happy

the was as from it. Got these just for of at just are there investments moment? not many comment And investments? have How a WM more on one diversion I write-down press out exactly there was year. housekeeping technology. knowledge, item it's those does own similar small I think last know But capital-style of material. our write-down kind release waste maybe a got in type there venture a what the it,

Sure.

suite of the its tell what the So call, capital-type of would kind of you I in was you largest was that portfolio, investment terms this in our, venture remaining investments.

anything investments. not significant would for that is you I looming And here similar so there's tell

MSW that had create do about this looking could see investment made. And sustainable to what to it solutions MSW. for the divert this to we we continuous For and recall in for you'll particular, relates was opportunities that one, all

to about our about the and were that thoughtful ensuring to we but be focused we what continue marketplace, expectations. it are than optimistic be this viability the of exist on in We different opportunities proved one, initial

coming question from Kevin CIBC. next our And from of the Chiang line

just Maybe questions few on acquisition. Bros. the a Winters

could assets. they me walk looks you have if strategically, through, wondering, it waste-to-rail some Just like just

you. wondering platform Just opportunities other that for a if for creates

something? wondering as do multipart an these operator know I it's think a they in shredding that carter and into looks York that were here, your of they question but its assets. acquisition a of some like commercial be, the part plays would Stericycle services. New I'm zones. for just it I Does have part also City I guess And third Shred-it then how also proposed

back, Well, Kevin. I'll start

long-term to I respect the licensed operator York New York New we've think City, been mid-XXs. in since City with a

that's service Bros. premier attracted why So us. Long the was the reason to provider not Winters They're certainly on environmental Island.

for that market It network got growing the with planned a of a top us, of assets that some of and One, the right? And real really that, Island white capabilities got end you well on business it's landfill. are of on a into intermodal new at year secret closure has things. Brookhaven was the think runs our estate. It's constraints of Long I that well hit couple disposal not key the sort They've play this capabilities. stand-alone. very space

about to run we're for out those us, join really They have employees. So fortunate the XXX folks XXX WM there. team. routes It's about

that. So we're excited about

thing, Bros. In of reason terms that we've the of like was the obviously other interest followed -- a any that Winters in commercial waste not for zone lot not folks, but was it our

just And a Okay. maybe clarification.

future? I Just intermodal I your that lot assets, for a have know plate on does platform a you mean now. create those

is of is further internalizing you'd kind that out. of for something primarily kind diversion? Or Just waste thinking use

to like the acquiring strategic of that the capabilities us. transportation a to terms modes disposal than that said, was in network of Certainly, in assets to we in we of certainly view that constraints grow something key as, on Island have outlook off ability continue Island was of Long waste their Long to receive move Long contributor for I as intermodal can the on some waste business. was Island, that their other us addition appealing truck And

coming our question James line next of And Cowen. from from the TD Schumm

landfill looked sort flattish. up are of mostly like the on were tons the curious just modestly, Just revenues

you're landfills. curious on Just for trends seeing pricing what

I think be net MSW is volumes to strong. we of of talked the earlier positive, actually continue -- lapping about C&D

showed the difference a really spread, volume this in up one that for of clearly, you're If little there's of Great quarter, in volume. talking was versus about took and the landfill to do our rate, yield in last outlook the average geography an volume has lower but but of quarter it with on where from. distinctive and that good yield chunk a business our more areas came

trends So volume terms overall core of and on, from at still the if don't price, decent still volume, you what positive. side. core And the landfill which any our price it standpoint, focused we see they're you station both in on if see -- look is really landfill we're transfer you there. look landfill the at deviation a We

So of to facilities. in we're quality bringing continuing to drive value our revenue terms the of post-collection in we're

bit This of very all the a these in said, good, rate mean little by gets market competition, this this an in I be different add lost, that, those pretty James, for rate Yes. was area MSW. driven that's to That's And well market the John driven have area, rate. happened as geographies MSW pickup, but big capacity, it things. rates, about which to but to just sometimes picked bump average happens nice that have said below different is pickup what there. by a and good John that well below average for it to up area, company. And conditions. XX% this

John mix, essentially look Core when price yield, which yield takes out because reflects talks the mix core the That's flat. includes So at effect. calculation you was core about price that. why price

versus while 'XX essentially of QX related. was the yield yield 'XX, was down QX at look a bit mix and flat, really of you If

when special well. would volume, our QX look is as you last through to that strong thing I add And continued at waste be the

were out couple sell for portfolio months that Great. RNG Okay. news With respect a potentially ago, that you'd of I think saying reports your investors some $X some to RNG, billion. there there misled

because you assets, is RNG later which the about price, made that any too purchase were would price sense the with now? offended way given But to can low. the large seem of provide You there forward the said Stericycle strategy by going us you color

things natural significant at is, that It's byproduct I'm look of one number. think still as EBITDA that free landfills. business a this offended said margin us, our I for the strong all accretion really we've we to last kind Look, it. along, by that provides is tenet way conversion, flow not but years we cash of of made few focus our And talk back. all a good it like, adds about that that we that strategy sustainability we least, of certainly really our to a those

We've would good. a along, of price. billion really all are sale things tell But those of everything is I that all price. said you, not at So $X for kind is

long price. a from it's fact, In way that

are we our I are now, those kind right about XX there, and So focus and X, year. that plants. are that construction got have out where I all X of there, we've coming process online of been on those. on X another out talked has this we'll those, of We're guess, in

As have X/X kind that the of I said comments almost in the and of Tyler's be EBITDA end to XX% CapEx year, realized. the of extra will spent only by my of is been going to question,

and why not from step-up the big really investments. there's look like be there, 'XX that's So going recycling but just a RNG to XXXX also

on own article at the would $X billion. we somebody phase Tara that recycling business excited for number are the if the we've plants. XX building has kind for We're the fact is those got that these doing. the I remainder we're potential those we threw of in that about Reuters well. XX. evaluating super now, X, focused us, And other of the landfills again, sale price. Anything that know We're at we're it. But So that out of RNG out at as gigantic look a there, right and rebuilds not some was talked for about

coming from Jefferies. of the from Stephanie Moore question next line our And

with maybe beat on growth. mean important. agree, to I a it's but dead XX% do think Certainly want don't you're It's the And right. up a Tyler's follow really think, to I here, horse strong. I blockbuster question Jim, year exactly I at and I beginning,

Commodity more is I always all bit kind you incremental this growth. And to, little a to or are and part think alluded looking our problem is as kind alluded see and dollars a business M&A of The performing I of could be coming to seems underlying where you think that EBITDA better. we're we're well. where probably better. Tyler is bit of of from, that for

slightly So maybe maybe maybe what would we firing But worse could strong be areas I kind not called little as on been volume through or is frankly, else, expected all as negative. think else you a bit out where the suggests which quite that if clearly anything it's cylinders. potentially on Obviously, of talk than is, front. helpful everything

there. helpful So

long-winded. it's if Sorry

volume. puts expected Look, touched up. the we the goes And fact, this There's approaching a there's It's is there in which year. every on than takes into good is thing about question. talked always No, one, single be and, and ups no, Volume a hardly the and may look X%. at coming it we've morning, you would year which business. softer we no. be ever thought where We downs, never bit in a

original Now only X% it's offset X%. going and the committed going the not 'XX, growth, delays our the saying, right would "Oops, to but is the volume but some in going when open more said is of flat. mean, still slightly the for EBITDA they're we've minor XX%." flat. Well, couple other So be we 'XX minor still fact going X I on to part open. There's expecting plants. delays And be everything delays. to guidance are opening line. volume It's not in in but that to was EBITDA we did they We encouraging think direction, minor exactly opening in while of a these that Oh, that but mention okay, approaching They're things. that's to us, and there's not is X.X% be offset now have I we not we're the approaching by way, is going it some

that negative. I about think the $XX impact of million is

us. a construction negative or experiencing in for projects. a that way, We of long-term been that like for form does shape good really track that's But on delays no indicate So plants. we're in these we're feel those

for rebuild a in you're commodity these price yes, a really fact shutting down a when don't by of there's example, that thing is the cost about, been that. So environment. the recycled that shutdown couple talk good there's way, you plants, things. One we for And

up us. in kind way a for being pickup of ends that So strange a

call it's get XXXX. of XX% little is. As tried 'XX, as why that you're it, of we much delays to shut there there into -- shutdown XXXX, million. was it. shutdown cost in a amounted I've retool are We've to as a impressive got you on some But have got plant kind to, some cost be $XX table bit because won't down We've costs order that in a shutdown to how going have the have pound the to

business. in it the But of bouncing improvement this kind in November? to mean just is and just sure Yes. not year. thing out done higher XXXX. back negatives who I tax have on am that we've that I'm So offset that gets that seem there office incredibly depending I are doesn't have way Could to I'm looks roll-off But of see bullish not doesn't few us we to -- a think I temp have really, industrial for prospects about XXXX. the negative there. a that kind in rate only we --

from coming line Sommer Tobey Securities. question next our And of from the Truist

speaking of you terms other front, feeling the business? On if look Over And the the prospects. on people could wondering are you they're the what in acquisition that through of pressures kind lens the I'm with you're last of pressuring to do perhaps to that into yourselves have investments years, year? driving currently them, others. and chain, have couple and been dialogues with others see fleet next and supply some the technology them table of How

them. I think, on of Tobey, you hit one

cetera. I'm they're packages, the fortunate of same our and there. one let's still reduces I turnover, for chain, et On been safety, of jobs, have and they're that's sure really it capacity a labor. I'm contributing our cetera, and frontline overall to et that wages reduces lot start that first, enduring supply pressure those improves pressure. on cetera, We've make and seeing had big area with where back see we the we the which terms some of up sure a second. But in et pressure you're changes show to some labor, go in comp and training, mean seeing

still the they've of any folks certainly or getting where there's is talked We cost fleet got on some to supply recapitalize these bit overhang. chain think cheaper. a business. little That their of I side not to their

those this think about few strong. areas So seeing the Jim $X we've Florida, done something or on real Arizona, of of sure we got, We've probably X/X to on companies in are hit is really pipeline already, tuck-in you growth a finish around Carolinas, areas and continued activity. But track was that's in why We're of make that And acquisitions. and I cetera. important. think billion-plus see we're some mean obviously, but to the I that space where hear that et we Texas, disciplined white opportunities. buying we're about be filling assets when

I Can growth related that decelerating something momentum can want expense, less et labor into trend to dig that expense cetera, the continue you said. next to retention training and into and year?

through trend is things. labor I last people. people, it Well, you to our QX. of I You're labor handful And you that turnover of the less handful training would some what that less think of leads It's tell over if lower trended a quarters, right? certainly at easing, you're hiring look it's pressure

of wheel your safety naturally not hovering why those us Your about it. And we're were experienced teens you who's historical efficiency post fact in what that the low dealing turnover, hear we is behind that's with continue the considering that a better only vehicle the talk performance. And as with high COVID, is for to lows. is someone but are

on to So because going the intently continue is we're that labor that to driving focused stay benefit.

on every benefit just labor to on addition in a don't one have truck. well, have -- we And you was a you back helper because of have most that you cases, the a cases, labor those have a labor of benefit In case, you I there, to way call just our said in from to of still to rear about in go ASL. XX% conversion what every have, John load going the it, say, benefit.

you're XX% more off. But side a loader. So an picking at that homes helper comes loader same rear versus with the time, up automated

efficiency pickup, So John in collection. from have growth that to business you're also in manual that technology and shifting is get to pickup team lines automated collection producing a addition when the of this these board on and technology-driven brought you

as X,XXX more door. halfway the contributor not over walking need last fill folks really we're of replace to by it, those important. And as we're frontline lined automation door, it's year. And the and It's are of again, who anymore. roles, over end we of we'll labor like could projected X,XXX many a don't in of single out are last to the those some those Those sort of of for use on reducing the point X,XXX those Tobey, are not person frontline remove harder come on fill we've ways are closing about the roles getting be years anymore And it, the as we're point we make X,XXX what that one that to and talked would we're from need approaching X-plus I and to the expensive, that up in necessarily positions that. intensity to X,XXX, individual finding front we call the contributor and technology to roles. And

our Manthey the question from of line coming Baird. from David And next

what the on fits for some you your is portfolio? destruction. Shred-it Could planning of acquire provide X/X to about Relative WM in document intent you're Stericycle, how thoughts to strategic

being own to not we as wasn't Yes. buy look that Shred-it recycling at I reason certainly Look, reason the wasn't think business. it It business, Stericycle but a Stericycle buy our either. complementary a to to

into the too. Tara the Size the matters be this there the business. And coming benefit is those way, Stericycle -- talked has recycler matters biggest that the it we're they're fact think I a really out plants in can about respect. to automation by that

material Stericycle. of of a So that better for potentially to a our We companies a paper paid other to like those a commodities. we're able might lot in we customer process price command addition smaller get than

can we makes is potentially also like bring So -- of there's where we price. we feel going I expertise, but a think couple on really a where -- difference to size, this which bring on places

and you customers. made Jim, earlier, the point it's routes And

Yes.

already to to once we for do fourth what the us get our under opportunity we X point. to the line a It's get business, business. here of of an collection that's in of lines covers lot that similarities got And

from of Stifel. Brian And next Butler our question coming line the from

Most it just I'll have my try and answered. make of questions been quick.

to there's are document internationally. an them? thought document your thoughts kind growth handful at? international is Just looking on and divestiture that destruction, Or as on of this well Is is about opportunity of Stericycle going maybe the you're destruction scenario? for also more those run really just that of Or in assets What the a as assets? that keep a that

that role the I but we're So it's divestiture tell position with from with about from from this WM, perspective. about always certainly an be something gives buy keeping particular would side, also the footprint intentional that international a for active market a in we we've important done sure more broadly. it respect wasn't as looking not when more Jim sustainability we're and recycling U.K. been the said, get objectives eye document you their us our think sustainability that on on to Stericycle, reason in afar, the to pace play we've they at perspective. more keeping to traction that that And that can a destruction and

question RBC. of Khan next our the from line coming And Saba from

Great.

Just lot just 'XX. one on my part. Heard on color a on of your optimism

this that up hash it maybe able -- of the on might side cyclical of the there optimism year, are on is If to color as head of pricing the you Is end improvement? volume back on, next about share visibility? some into year. that areas you you just picking maybe have 'XX to you the be market maybe what's possible out some extent the think can you As are driving the some

kind Yes. of But about it's of July way, -- I end roll-off no don't I by that mean, optimistic so hard the say. the tell the of say I can't I something here we're analytics, you we're this is bit business, think, there's it's I else super side. well pretty I the up -- point, did good a is mean, pretty quite the changes. to think, be, our to industrial to as it's -- just direction only side little business. At I soft. But implement kind we pretty data Pricing and use at good. on that we pricing everything and room seems I'm been of

looks strong and I how consumer don't I bit then do be concerned in the to don't know overall the next won't continue of is why we'll business as 'XX don't going Volume earlier see -- I solid to the think and of the nature itself, get be I look, Stericycle more I was stronger about where think to the worse. just that consumer the year. trajectory adding pretty waste is, questions we the reason economy a reason we're And even we kind look closer they business, roll-off consumer, growth to as to strong, any by one year. has look, think see So a any a next in are. pricing think of it's what be Commercial, about economy going like. But is for

be fairly able I'm you as volume closer. by the encouraged but I'll more So tell get outlook, we to

should and million And similar we that shutdown EBITDA, been $XXX a tailwind a the bit plants, our you get of told that the XX% we of The investments, on plants represent costs of will the through. by incurring seeing the end of in Jim big of mentioned other them should XXXX I the that for roll really sustainability-related be year will a be roughly a would us we 'XX recycling XX add X only online XXXX. the have on we've about. had is story from thing

So investment a of say, on lot sustainability would side. momentum, I the

in showing I over CEO, the further queue any will the President I'm back And turn to no this now questions and closing time. for remarks. Mr. Jim at call Fish,

able morning. questions years thank this coming a for our your this and the we hope of reasons demonstrate 'XX. Well, all beyond Okay. sufficient color, amount I year both for gave we're you to our for optimism for and

us, joining look again thanks we So talking and forward next for to to quarter. you

that your our conference today. participation. end you for Thank gentlemen, and does Ladies for

You may now disconnect.