Waste nections(WCN)2025-04-24 10:00Revenue and Income - Total revenues increased by $155.5 million, or 7.5%, to $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% of revenues, compared to $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% of revenues, for the three months ended March 31, 2025, compared to $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% from $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%, to $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%, to $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%, to $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%, to $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% EBITDA margin for the three months ended March 31, 2025, down from a 26.8% margin in the prior year[203]. - Adjusted EBITDA for Q1 2025 was $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% in 2024[198]. - EBITDA for the Eastern segment increased by $8.1 million to $103.1 million, with a 25.6% EBITDA margin for the three months ended March 31, 2025, compared to 26.4% in the prior year[206]. - EBITDA for the Canada segment increased by $14.2 million to $135.6 million, achieving a 44.8% EBITDA margin for the three months ended March 31, 2025, up from 43.3% in the prior year[214]. Cash Flow and Capital Expenditures - Net cash provided by operating activities increased by $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].