Item 7.01 Regulation FD Disclosure.
During our earnings conference call on
(Dollar amounts are approximations)
For the fourth quarter of the year, we estimate our revenue to be approximately
Q4 2021 OUTLOOK NON-GAAP RECONCILIATION SCHEDULE (in thousands ofU.S. dollars, except where noted)
Reconciliation of Adjusted EBITDA:
Q4 2021 Outlook Estimates Observation Net income attributable to Waste Connections$ 182,300 Plus: Income tax Approximately 21.5% provision 49,900 effective rate Plus: Interest expense, net of interest income 40,000 Plus: Depreciation and Approximately 10.9% of depletion 171,600 revenue Approximately 2.4% of revenue, or$0.11 per Plus: Amortization 38,500 diluted share net of taxes Plus: Closure and post-closure accretion 3,700 Approximately 30.8% of Adjusted EBITDA$ 486,000 revenue
These estimates assume no significant change in underlying economic trends, including as a result of, or related to, impacts from the COVID-19 pandemic.
They also exclude any impact from additional acquisitions that may close during the remainder of the year, and expensing of transaction-related items during the period.
We also provided preliminary thoughts for full year 2022, which assume no change in the current economic environment. Solid waste pricing growth should ramp to between 5.5% and 6% in 2022; acquisition contribution is already at about 2.5% growth, potentially doubling to about 5% by year-end or early next year; and solid waste volumes should reflect underlying trends in macro activity, with the caveat that the trade-off of price over volume is more important than ever in an inflationary, labor-constrained environment. In addition to potential double digit top line growth, we also expect continuing underlying solid waste margin expansion and strong adjusted free cash flow conversion next year, with double digit per share growth.
Adjusted EBITDA, a non-GAAP financial measure, is provided supplementally
because it is widely used by investors as a performance and valuation measure in
the solid waste industry. Management uses adjusted EBITDA as one of the
principal measures to evaluate and monitor the ongoing financial performance of
our operations. We define adjusted EBITDA as net income attributable to
This measure is not a substitute for, and should be used in conjunction with, GAAP financial measures. Other companies may calculate adjusted EBITDA differently.
The information furnished in Item 7.01 is not deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, is not subject to the liabilities of that section, and is not deemed incorporated by reference in any filing under the Securities Act of 1933, as amended.
Safe Harbor and Forward-Looking Information
This document contains forward-looking statements within the meaning of the safe
harbor provisions of the
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