Waste Management Q2 Resiliant Amid Pandemic Effects
| Waste Management, Inc. (WM) | ||
| Three Months Ended Jun. 30 | ||
| (millions of $) | 2020 | 2019 |
| Revenue | 3,561 | 3,946 |
| EBITDA | 1,026 | 1,134 |
| EBITDA Margin | 28.8% | 28.7% |
| Net Income | 307 | 381 |
Waste Management posted solid second quarter financial results despite a negative revenue impact of $400 million due to COVID-19-related business interruptions. The company had a stronger than expected performance and credited its resiliency and focus on capital and cost management. Revenues for the second quarter of 2020 were $3.56 billion compared with $3.95 billion for the same 2019 period. Net income for the quarter was $307 million, or $0.72 per diluted share, compared with $381 million, or $0.89 per diluted share, for the second quarter of 2019. On an adjusted basis, net income was $372 million, or $0.88 per diluted share, in the second quarter of 2020, compared with $470 million, or $1.11 per diluted share, in the second quarter of 2019...Read More »
Republic Services Reports Strong Q2 Despite Pandemic Effects
| Republic Services, Inc. (RSG) | ||
| Three Months Ended Jun. 30 | ||
| (millions of $) | 2020 | 2019 |
| Revenue | 2,454.4 | 2,605.3 |
| EBITDA | 675.7 | 710.6 |
| EBITDA Margin | 27.5% | 27.3% |
| Net Income | 225.5 | 251.5 |
Republic Services, Inc. (RSG) announced its second quarter earnings on August 6, reporting net income of $225.5 million versus $251.5 million for the comparable 2019 period. Excluding certain gains and expenses, on an adjusted basis, net income was $258.2 million versus $254.1 million for the comparable 2019 period.
Don W. Slager, chief executive officer, said other highlights include the increased adjusted EBITDA Margin by 170 basis points; the company provided 2020 adjusted free cash flow guidance; increased quarterly dividend by approximately five percent; and Republic Services was named to 3BL Media's 100 Best Corporate Citizens list for the first time...Read More »
Waste Connections Q2 Hampered by Decline in E&P
| Waste Connections, Inc. (WCN) | ||
| Three Months Ended Jun. 30 | ||
| (millions of $) | 2020 | 2019 |
| Revenue | 1,305.7 | 1,369.6 |
| EBITDA | 394.3 | 425.3 |
| EBITDA Margin | 30.2% | 31.1% |
| Net Income | (227.1) | 148.8 |
Waste Connections reported second quarter results hampered by E&P headwinds, but with revenue $18 million better than projected as economic activity slowly recovers. Unlike many of its peers, the company also released detailed new guidance based on a conservative outlook that economic recovery may have leveled off near term. "We acknowledge that the impacts from COVID-19 persist and recognize that reopenings might be complicated by continued outbreaks and the imposition of additional closure requirements," said CEO Worthing Jackman in prepared remarks during the company's Friday earnings call...Read More »
Advanced Disposal Q2 Reflects Challenging Conditions
Advanced is no longer holding earnings calls, due to its pending acquisition by Waste Management, but the company reported being "extremely pleased" with its results in a press release. "The second quarter was one of the most challenging business environments we have ever faced with unprecedented changes to our economy driven by the COVID-19 pandemic," said CEO Richard Burke in a statement. "Yet despite these headwinds, we were able to achieve significant improvements in operating income, net income, and cash flow from operations during the quarter."
While overall volumes declined by 12.2%, the company saw average yield increase to 3.8% and net income improve by $7.2 million. Revenues declined across all three of Advanced's operating regions, with its East Segment seeing the sharpest drop of 14.8%. Overall collection revenues were $259.9 million (down from $279.4 million in Q2 of 2019), but within that category residential collection improved by $5 million to reach $107.3 million. Disposal revenues were $129 million (down from $152.5 million in 2019) and recycling revenue rose to $3.8 million (up from $2.7 million in 2019)...Read More »
| GFL Environmental Inc. (GFL) | ||
| Three Months Ended Jun. 30 | ||
| (millions of $) | 2020 | 2019 |
| Revenue | 993.3 | 831.4 |
| EBITDA | 261.5 | 211.9 |
| EBITDA Margin | 26.3% | 25.5% |
| Net Income | (115.5) | (68.0) |
GFL Environmental Inc. (Vaughan, Ont.) said second quarter revenue increased by 19.5 percent to CA$993.3 million ($746.9 million) in the second quarter compared to the second quarter of 2019. Solid waste core price for the second quarter was 3.7 percent compared to 4.4 percent in the comparable quarter of the prior year, resulting from the company's decision to temporarily suspend pricing initiatives in response to COVID-19 disruptions. Solid waste volumes declined 8.3 percent for the second quarter, with 80 percent of the decline attributable to its commercial and industrial collection operations...Read More »
Casella Posts Positive Q2 Despite Pandemic Volume Declines
| Casella Waste Systems (CWST) | ||
| Three Months Ended Jun. 30 | ||
| (millions of $) | 2020 | 2019 |
| Revenue | 188.8 | 187.5 |
| EBITDA | 44.0 | 40.4 |
| EBITDA Margin | 23.3% | 21.5% |
| Net Income | 12.1 | 11.9 |
Despite the continued economic downturn related to the COVID-19 pandemic, Casella Waste Systems (Rutland, VT) performed well during the second quarter of 2020 despite declines in solid waste volumes amidst the company's strategic reductions in variable costs in response to the pandemic, according to today's company earnings call.
John W. Casella, the company's Chairman and CEO, said "overall our efforts have reduced the number of cases and reduced business interruption" on the company's August 4 earnings call, noting that "prudent cost regulations" helped maintain earnings growth despite the fact that "volumes were significantly impacted"...Read More »
Covanta Reports Strong Q2 2020 Results
| Covanta Holding Corporation (CVA) | ||
| Three Months Ended Jun. 30 | ||
| (millions of $) | 2020 | 2019 |
| Revenue | 454 | 467 |
| EBITDA | 96 | 94 |
| EBITDA Margin | 21.1% | 20.1% |
| Net Income | (13.0) | (21.0) |
Covanta reported revenues of $454 million for the second quarter of 2020, which is down compared with $467 million achieved in the second quarter of 2019. Net cash provided by operating activities was $94 million, up from $50 million in the same period in the previous year. Free cash flow was $62 million for the quarter, up from $21 million in the second quarter of 2019. Finally, Covanta reported its waste-to-energy tip fees were up 1.3 percent with $158 million in 2020 and $162 million in 2019.
"Our business performed well in the second quarter under difficult circumstances," says Covanta's President and CEO Stephen J. Jones...Read More »
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