Waste nections(WCN) - 2025 Q1 - Quarterly Report

Revenue and Income - Total revenues increased by $155.5 million, or 7.5$2.228 billion for the three months ended March 31, 2025, compared to $2.073 billion for the same period in 2024[152]. - Acquisitions closed during or subsequent to the three months ended March 31, 2024, contributed an additional$131.0 million to revenues for the three months ended March 31, 2025[153]. - Operating income for the three months ended March 31, 2025, was $390.2 million, representing 17.5$366.8 million, or 17.7% of revenues, for the same period in 2024[152]. - Net income attributable to Waste Connections was $241.5 million, or 10.9$230.1 million, or 11.1% of revenues, for the same period in 2024[152]. - Total revenue for the three months ended March 31, 2025, was $2,228.2 million, an increase from$2,072.7 million in the same period of 2024[189]. - Adjusted net income attributable to Waste Connections for Q1 2025 was $293,120, up 9.1$268,669 in Q1 2024[250]. - Reported net income attributable to Waste Connections for Q1 2025 was $241,510, compared to$230,054 in Q1 2024, reflecting a growth of 5%[250]. Expenses and Costs - Cost of operations rose by $69.7 million, or 5.7$1.291 billion for the three months ended March 31, 2025, from 1.222 billion for the same period in 2024[161]. - SG&A expenses increased by 29.4 million, or 13.3%, to $250.1 million for the three months ended March 31, 2025, from$220.7 million for the same period in 2024[164]. - Depreciation expense increased by $19.6 million, or 8.8$242.3 million for the three months ended March 31, 2025, compared to $222.7 million for the same period in 2024[167]. - Amortization of intangibles expense rose by$7.3 million, or 18.2%, to $47.6 million for the three months ended March 31, 2025, from$40.3 million in the prior year[171]. - Interest expense increased by $2.4 million, or 3.0$80.9 million for the three months ended March 31, 2025, from $78.5 million in the prior year[178]. - Segment expenses rose by$16.9 million to $326.1 million for the three months ended March 31, 2025, from$309.2 million in the prior year, due to increased labor and acquisition-related costs[202]. EBITDA and Margins - Operating income increased by $23.4 million, or 6.4$390.2 million for the three months ended March 31, 2025, compared to $366.8 million for the same period in 2024[175]. - EBITDA decreased by$0.8 million to $112.3 million, resulting in a 25.6$712,213, an increase of 9.5% from $650,673 in Q1 2024[248]. - Segment EBITDA for the Southern segment increased to$148.7 million, with a margin of 32.8% for the three months ended March 31, 2025, compared to $128.4 million and a margin of 30.7$8.1 million to $103.1 million, with a 25.6$14.2 million to $135.6 million, achieving a 44.8$51.2 million to $541.5 million for the three months ended March 31, 2025, compared to$490.3 million in the prior year[221]. - Net cash used in investing activities decreased by $731.4 million to$603.2 million for the three months ended March 31, 2025, from $1.335 billion in the prior year[225]. - Capital expenditures for property and equipment totaled$212.5 million during the three months ended March 31, 2025, with total expected capital expenditures for 2025 projected between $1.200 billion and$1.225 billion[231]. - Adjusted free cash flow for the three months ended March 31, 2025, was $332.1 million, compared to$324.8 million for the same period in 2024, indicating a slight increase in liquidity[245]. Debt and Financing - The company had $2.480 billion outstanding under the revolving credit facility as of March 31, 2025, with a maturity date of February 27, 2029[232]. - The total long-term debt recorded was$8.465 billion, with significant principal payments due in the coming years, including $500 million due in 2028 and$500 million due in 2029[235]. - The company recorded $90.2 million in contingent consideration liabilities as of March 31, 2025[238]. - The company has$1.680 billion in unhedged floating rate debt as of March 31, 2025, with a one percentage point increase in interest rates potentially decreasing annual pre-tax income by $16.8 million[260]. - The company has four interest rate swap agreements to manage interest rate risks, effectively fixing rates on$800 million of variable rate debt[257]. Market and Operational Factors - During the three months ended March 31, 2025, the company recognized volume losses totaling $65.9 million due to a decrease in roll-off volumes and lower residential collection volumes[155]. - The average Canadian dollar to U.S. dollar exchange rate decreased, resulting in a revenue decrease of$16.8 million for the three months ended March 31, 2025[158]. - A $0.10 per gallon increase in diesel fuel prices would decrease pre-tax income by approximately$3.7 million during the remaining nine months of 2025[263]. - A 10% decrease in average recycled commodity prices would impact revenues by $5.9 million for Q1 2025[264]. - A$0.01 change in the CAD to USD exchange rate would affect annual revenue and EBITDA by approximately $19.0 million and$9.0 million, respectively[265]. - Inflationary pressures from higher fuel, materials, and labor costs are being managed through contracts that allow passing costs to customers[252]. Environmental and Social Governance (ESG) - The company committed $500 million to advance long-term ESG targets, focusing on reducing environmental impact and enhancing employee safety and engagement[143].