Strong start to 2024 on price-led organic growth in solid waste, improving operating trends and continued acquisition activity Revenue of $2.073 billion, above outlook and up 9.1% year over year Net income(a) of $230.1 million and adjusted EBITDA(b) of $650.7 million, above outlook and up 14.8% year over year Adjusted EBITDA margin of 31.4%, above outlook and up 160 basis points year over year Net income and adjusted net income(b) of $0.89 and $1.04 per share, respectively Net cash provided by operating activities of $490.3 million and adjusted free cash flow(b) of $324.8 million Year-to-date acquired annualized revenue of over $375 million TORONTO, April 24, 2024 /CNW/ -- Waste Connections, Inc. (NYSE:WCN) ("Waste Connections" or the "Company") today announced its results for the first quarter of 2024.     "We are extremely pleased by the strong start to the year driving better than expected operating and financial results, which, along with recently completed acquisitions, positions us well for the remainder of 2024.  Adjusted EBITDA(b) margin expansion of 160 basis points to 31.4% in the seasonally weakest quarter of the year puts us on track to exceed our industry-leading full year outlook of 32.7%, as continuing improvements in employee retention and safety trends, along with rising commodity values, provide momentum for continued outperformance," said Ronald J. Mittelstaedt, President and Chief Executive Officer. "We're encouraged to see improvements in employee retention driving some of our best safety performance in years, with monthly incidents down to three-year lows in spite of outsized growth from acquisitions during that period," continued Mr. Mittelstaedt.  "These results reflect the value of our decentralized operating model and our commitment to a culture of accountability." Mr. Mittelstaedt added, "Acquisition activity continues at outsized levels following the Secure Energy transaction completed in February, with solid waste acquisitions totaling approximately $150 million in annualized revenue closed to date, including a new market entry serving customers in Indiana and Michigan.  The strength of our financial position and free cash flow generation provide flexibility for continued acquisition outlays in 2024 for what could be one of our busiest years ever, along with increasing return of capital to shareholders." Q1 2024 Results Revenue in the first quarter totaled $2.073 billion, up from $1.901 billion in the year ago period.  Operating income was $366.8 million, which included $11.5 million primarily in transaction-related expenses and fair value accounting changes associated with certain equity awards.  This compares to operating income of $314.7 million in the first quarter of 2023, which included $4.3 million primarily related to transaction-related expenses and impairments and other operating items.  Net income in the first quarter was $230.1 million, or $0.89 per share on a diluted basis of 258.5 million shares.  In the year ago period, the Company reported net income of $197.8 million, or $0.77 per share on a diluted basis of 258.0 million shares.   Adjusted net income(b) in the first quarter was $268.7 million, or $1.04 per diluted share, up from $230.4 million, or $0.89 per diluted share, in the prior year period.  Adjusted EBITDA(b) in the first quarter was $650.7 million, as compared to $566.9 million in the prior year period.  Adjusted net income, adjusted net income per diluted share and adjusted EBITDA, all non-GAAP measures, primarily exclude impairments and transaction-related items, as reflected in the detailed reconciliations in the attached tables. Q1 2024 Earnings Conference Call Waste Connections will be hosting a conference call related to first quarter earnings on April 25th at 8:30 A.M. Eastern Time.  A live audio webcast of the conference call can be accessed by visiting investors.wasteconnections.com and selecting "News & Events" from the website menu. Alternatively, conference call participants can preregister by clicking here.  Registered participants will receive dial-in instructions and a personalized code for entry to the conference call.  A replay of the conference call will be available until May 2, 2024, by calling 877-344-7529 (within North America) or 412-317-0088 (international) and entering Passcode #4074999.    Waste Connections will be filing a Form 8-K on EDGAR and on SEDAR (as an "Other" document) prior to markets opening on April 25th, providing the Company's second quarter 2024 outlook for revenue, price plus volume growth for solid waste, and adjusted EBITDA(b). About Waste Connections Waste Connections (wasteconnections.com) is an integrated solid waste services company that provides non-hazardous waste collection, transfer and disposal services, including by rail, along with resource recovery primarily through recycling and renewable fuels generation. The Company serves approximately nine million residential, commercial and industrial customers in mostly exclusive and secondary markets across 46 states in the U.S. and six provinces in Canada. Waste Connections also provides non-hazardous oilfield waste treatment, recovery and disposal services in several basins across the U.S. and Canada, as well as intermodal services for the movement of cargo and solid waste containers in the Pacific Northwest. Waste Connections views its Environmental, Social and Governance ("ESG") efforts as integral to its business, with initiatives consistent with its objective of long-term value creation and focused on reducing emissions, increasing resource recovery of both recyclable commodities and clean energy fuels, reducing reliance on off-site disposal for landfill leachate, further improving safety and enhancing employee engagement. Visit wasteconnections.com/sustainability for more information and updates on our progress towards targeted achievement. Safe Harbor and Forward-Looking Information This press release contains forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995 ("PSLRA"), including "forward-looking information" within the meaning of applicable Canadian securities laws. These forward-looking statements are neither historical facts nor assurances of future performance and reflect Waste Connections' current beliefs and expectations regarding future events and operating performance. These forward-looking statements are often identified by the words "may," "might," "believes," "thinks," "expects," "estimate," "continue," "intends" or other words of similar meaning. All of the forward-looking statements included in this press release are made pursuant to the safe harbor provisions of the PSLRA and applicable securities laws in Canada. Forward-looking statements involve risks and uncertainties. Forward-looking statements in this press release include, but are not limited to, statements about expected 2024 financial results, outlook and related assumptions, and potential acquisition activity. Important factors that could cause actual results to differ, possibly materially, from those indicated by the forward-looking statements include, but are not limited to, risk factors detailed from time to time in the Company's filings with the SEC and the securities commissions or similar regulatory authorities in Canada.  You should not place undue reliance on forward-looking statements, which speak only as of the date of this press release.  Waste Connections undertakes no obligation to update the forward-looking statements set forth in this press release, whether as a result of new information, future events, or otherwise, unless required by applicable securities laws. – financial tables attached – CONTACT: Mary Anne Whitney / (832) 442-2253                                                          Joe Box / (832) 442-2153                                                                           ----------------------------------------------------------------------------------------------------------------------------------------------------  (a) All references to "Net income" refer to the financial statement line item "Net income attributable to Waste Connections".  (b) A non-GAAP measure; see accompanying Non-GAAP Reconciliation Schedule.   WASTE CONNECTIONS, INC. CONDENSED CONSOLIDATED STATEMENTS OF NET INCOME THREE MONTHS ENDED MARCH 31, 2023 AND 2024 (Unaudited) (in thousands of U.S. dollars, except share and per share amounts) Three months endedMarch 31, 2023 2024 Revenues $ 1,900,503 $ 2,072,653 Operating expenses: Cost of operations 1,146,941 1,221,783 Selling, general and administrative 193,667 220,735 Depreciation 204,059 222,691 Amortization of intangibles 39,282 40,290 Impairments and other operating items 1,865 354 Operating income 314,689 366,800 Interest expense (68,353) (78,488) Interest income 2,715 2,051 Other income (expense), net 3,174 (1,823) Income before income tax provision 252,225 288,540 Income tax provision (54,389) (59,413) Net income 197,836 229,127 Plus (Less): Net loss (income) attributable to noncontrolling interests (23) 927 Net income attributable to Waste Connections $ 197,813 $ 230,054 Earnings per common share attributable to Waste Connections' common shareholders: Basic $ 0.77 $ 0.89 Diluted $ 0.77 $ 0.89 Shares used in the per share calculations: Basic 257,372,942 257,801,116 Diluted 257,988,971 258,482,473 Cash dividends per common share $ 0.255 $ 0.285   WASTE CONNECTIONS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (in thousands of U.S. dollars, except share and per share amounts) December 31,2023 March 31,2024 ASSETS Current assets: Cash and equivalents $ 78,399 $ 111,985 Accounts receivable, net of allowance for credit losses of $23,553 and $22,858 at December 31, 2023 and March 31, 2024, respectively 856,953 896,682 Prepaid expenses and other current assets 206,433 208,387 Total current assets 1,141,785 1,217,054 Restricted cash 105,639 105,683 Restricted investments 70,350 74,655 Property and equipment, net 7,228,331 7,827,304 Operating lease right-of-use assets 261,782 273,371 Goodwill 7,404,400 7,597,175 Intangible assets, net 1,603,541 1,877,226 Other assets, net 100,048 110,192 Total assets $ 17,915,876 $ 19,082,660   LIABILITIES AND EQUITY