Date: December 12, 2011
Source: Waste Connections, Inc.
Waste Connections, Inc. (Folsom, CA) has made good on its threat and now plans to move its corporate headquarters to The Woodlands, Texas, just north of Houston. The move is to begin immediately and be complete by September next year. Earlier this year company CEO Ron Mittelstaedt cited a tough "business climate" and a "dysfunctional" state Legislature among many reasons for leaving. However, as the company has expanded eastward, it has become increasingly important to seek a more central location, particularly to a city that is a hub for airlines. Denver, Chicago, Houston and Austin were the top contenders. Mittelstaedt added that Texas' warmer temperatures, business-friendly climate and a lack of a state income tax were also factors. Meanwhile, "California has the highest state tax rates in the nation, and they're going higher," Mittelstaedt said.
The move is expected to cost the company about $15 million, but it will cost Sacramento County where it is the largest private company, a great deal more in lost economic benefit. Mittelstaedt estimates the firm generates about $80 million to $100 million a year in direct salaries, payroll taxes, payments to vendors and outside contractors and other local expenditures.
Earlier this year the company lost a lobbying battle in the state when the Legislature refused to pass a bill (AB 1178) that would have prevented cities and counties from limiting the amount of outside waste accepted into their landfills. The issue has been especially important for Waste Connections which recently spent $100 million to purchase the Potrero Hills landfill in Solana County which subsequently resurrected a long dormant voter-approved measure to limit outside waste imports.
See also: "Waste Connections Considers Moving to Texas," (www.wasteinfo.com/news/wbj20110907A.htm).
PRESS RELEASE
December 12, 2011
Waste Connections Announces Relocation of Corporate Headquarters
Waste Connections, Inc. (NYSE: WCN) today announced plans to relocate its corporate headquarters to The Woodlands, Texas. The Company expects the relocation to commence before year-end 2011 and be completed by September 2012.
"Our expanding geographic reach and expected continuing growth required us to make an objective assessment of the appropriate location for our corporate headquarters. The Woodlands offers our employees an attractive, lower cost, and more centrally located community well serviced by two major airports," said Ronald J. Mittelstaedt, Chairman and Chief Executive Officer. "Every corporate employee has been offered the opportunity to relocate, and almost all are expected to move."
Mr. Mittelstaedt continued, "We will be forever grateful to our many friends and supporters across California, and we remain committed to continuing our corporate and employee-led philanthropic support within the local communities where we operate."
The Company expects to incur an estimated $15 million of costs during 2012 related to personnel and office relocation expenses. In addition, the Company may incur a loss in 2012 on its existing corporate office lease.
Waste Connections, Inc. is an integrated solid waste services company that provides solid waste collection, transfer, disposal and recycling services in mostly exclusive and secondary markets. The Company serves more than two million residential, commercial and industrial customers from a network of operations in 29 states. The Company also provides intermodal services for the movement of containers in the Pacific Northwest. Waste Connections, Inc. was founded in September 1997 and is currently headquartered in Folsom, California.
For more information, visit the Waste Connections web site at www.wasteconnections.com.
Certain statements contained in this press release are forward-looking in nature, including statements related to expected growth, the number of employees expected to relocate and the cost and timing of the corporate office relocation. Waste Connections' business and operations are subject to a variety of risks and uncertainties and, consequently, actual results may differ materially from those projected by any forward-looking statements. These risks and uncertainties, as well as others, are discussed in greater detail in Waste Connections' filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K. There may be additional risks of which Waste Connections is not presently aware or that it currently believes are immaterial which could have an adverse impact on its business. Waste Connections makes no commitment to revise or update any forward-looking statements in order to reflect events or circumstances that may change.
Contact Information
Waste Connections, Inc.
Worthing Jackman
(916) 608-8266
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