WASTE CONNECTIONS, INC. THE WOODLANDS, Texas, Oct. 21, 2014 /PRNewswire/ -- Waste Connections, Inc. (NYSE: WCN) today announced its results for the third quarter of 2014. Revenue totaled $546.6 million, an 8.5% increase over revenue of $503.6 million in the year ago period. Operating income was $116.0 million compared to $115.6 million in the third quarter of 2013. Adjusted EBITDA* in the third quarter of 2014 was $192.3 million, up 8.6% over adjusted EBITDA* of $177.1 million in the prior year period. Adjusted EBITDA, a non-GAAP measure, excludes the impact of items such as gains or losses on the disposal of assets and impairments, and acquisition-related costs, as shown in the detailed reconciliation in the attached table.
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Net income attributable to Waste Connections in the quarter was $60.1 million, or $0.48 per share on a diluted basis of 124.8 million shares. In the year ago period, the Company reported net income attributable to Waste Connections of $60.7 million, or $0.49 per share on a diluted basis of 124.3 million shares.
Adjusted net income attributable to Waste Connections* in the quarter was $70.2 million, or $0.56 per share, versus $63.7 million, or $0.51 per share, in the prior year period. Adjusted net income and adjusted net income per diluted share, both non-GAAP measures, exclude certain items net of tax, as shown in the detailed reconciliation in the attached table, that affect comparability of results between periods.
"We once again are extremely pleased with our strong performance in the quarter. Improving commercial collection trends and a 7% increase in municipal solid waste landfill tonnage drove better than expected solid waste volume growth, and E&P waste activity continued to grow in excess of 20% despite more difficult prior year comps and unusually wet weather in the Permian," said Ronald J. Mittelstaedt, Chief Executive Officer and Chairman. "Year-to-date, our EBITDA margin has expanded almost 60 basis points, and we've converted more than half of our EBITDA into free cash flow despite a 75% increase in cash taxes. Our strong financial performance positioned us for another double-digit increase in our quarterly cash dividend and, we believe, was a key contributor to our recent two-notch credit rating upgrade to "BBB+" by S&P."
Mr. Mittelstaedt added, "Discipline in deploying capital is as important now as ever as we have been reviewing a record amount of potential growth opportunities. In addition to the previously announced acquisition of two development stage landfills earlier this year, we're pleased to announce recent new market entry acquisitions of solid waste collection operations in Alabama and North Dakota, with combined annualized revenue of almost $20 million. In addition, to further strengthen our E&P waste asset positioning, we acquired a treatment and disposal company with two landfills in the Bakken, with current annualized revenue of about $10 million and ramping, and four additional permitting opportunities in North Dakota, Montana and Wyoming. These transactions, along with other acquisitions we expect to complete over the next few months, provide additional building blocks for growth and margin expansion in 2015."
* A non-GAAP measure; see accompanying Non-GAAP Reconciliation Schedule
For the nine months ended September 30, 2014, revenue was $1.55 billion, a 7.6% increase over revenue of $1.44 billion in the year ago period. Operating income was $335.3 million compared to $295.6 million for the same period in 2013. Adjusted EBITDA* for the nine months ended September 30, 2014, was $538.9 million, up 9.4% over adjusted EBITDA* of $492.5 million in the prior year period. Net income attributable to Waste Connections for the nine months ended September 30, 2014, was $171.8 million, or $1.38 per share on a diluted basis of 124.8 million shares. In the year ago period, the Company reported net income attributable to Waste Connections of $146.2 million, or $1.18 per share on a diluted basis of 124.1 million shares. Adjusted net income attributable to Waste Connections* for the nine months ended September 30, 2014, was $190.9 million, or $1.53 per share, compared to $167.3 million, or $1.35 per share, in the year ago period.
Waste Connections, Inc. is an integrated solid waste services company that provides waste collection, transfer, disposal and recycling services in mostly exclusive and secondary markets. Through its R360 Environmental Solutions subsidiary, the Company is also a leading provider of non-hazardous oilfield waste treatment, recovery and disposal services in several of the most active natural resource producing areas in the United States, including the Permian, Bakken and Eagle Ford Basins. Waste Connections serves more than two million residential, commercial, industrial, and exploration and production customers from a network of operations in 31 states. The Company also provides intermodal services for the movement of cargo and solid waste containers in the Pacific Northwest. Waste Connections, Inc. was founded in September 1997 and is headquartered in The Woodlands, Texas.
Waste Connections will be hosting a conference call related to third quarter earnings and fourth quarter outlook on October 22(nd) at 8:30 A.M. Eastern Time. The call will be broadcast live over the Internet at www.streetevents.com or through a link on our website at www.wasteconnections.com. A playback of the call will be available at both of these websites.
For more information, visit the Waste Connections web site at www.wasteconnections.com. Copies of financial literature, including this release, are available on the Waste Connections website or through contacting us directly at (832) 442-2200.
* A non-GAAP measure; see accompanying Non-GAAP Reconciliation Schedule
Information Regarding Forward-Looking Statements
Certain statements contained in this release are forward-looking in nature, including statements related to: trends in our business; the expected contribution from recently completed acquisitions; expected acquisition activity; the Company's ability to finance additional acquisitions and newly permitted E&P waste facilities; and the Company's ability to grow and expand margins. These statements can be identified by the use of forward-looking terminology such as "believes," "expects," "may," "will," "should," or "anticipates," or the negative thereof or comparable terminology, or by discussions of strategy. Factors that could cause actual results to differ from those projected include, but are not limited to, the following: (1) our results are vulnerable to economic conditions; (2) our industry is highly competitive and includes larger and better capitalized companies, companies with lower prices, return expectations or other advantages, and governmental service providers, which could adversely affect our ability to compete and our operating results; (3) our E&P waste business depends on the level of drilling and production activity in the basins in which we operate and the willingness of E&P companies to outsource their waste services activities; (4) we have limited experience in running an E&P waste treatment, recovery and disposal business; (5) competition for acquisition candidates, consolidation within the waste industry and economic and market conditions may limit our ability to grow through acquisitions; (6) our indebtedness could adversely affect our financial condition and limit our financial flexibility; (7) price increases may not be adequate to offset the impact of increased costs, or may cause us to lose volume; (8) fluctuations in prices for recycled commodities that we sell and rebates we offer to customers may cause our revenues and operating results to decline; (9) the seasonal nature of our business and "event-driven" waste projects cause our results to fluctuate; (10) we may lose contracts through competitive bidding, early termination or governmental action; (11) increases in labor costs could impact our financial results; (12) increases in the price of diesel or compressed natural gas fuel may adversely affect our collection business and reduce our operating margins; (13) labor union activity could divert management attention and adversely affect our operating results; (14) we could face significant withdrawal liability if we withdraw from participation in one or more multiemployer pension plans in which we participate and the accrued pension benefits are not fully funded; (15) our financial results could be adversely affected by impairments of goodwill or indefinite-lived intangibles; (16) we may incur charges related to capitalized expenditures of landfill development projects, which would decrease our earnings; (17) pending or future litigation or governmental proceedings could result in material adverse consequences, including judgments or settlements; (18) we may be subject in the normal course of business to judicial, administrative or other third party proceedings that could interrupt or limit our operations, require expensive remediation, result in adverse judgments, settlements or fines and create negative publicity; (19) increases in insurance costs and the amount that we self-insure for various risks could reduce our operating margins and reported earnings; (20) a portion of our growth and future financial performance depends on our ability to integrate acquired businesses, and the success of our acquisitions; (21) each business that we acquire or have acquired may have liabilities or risks that we fail or are unable to discover, or that become more adverse to our business than we anticipated at the time of acquisition; (22) our financial results are based upon estimates and assumptions that may differ from actual results; (23) our accruals for our landfill site closure and post-closure costs may be inadequate; (24) we depend significantly on the services of the members of our senior and regional management team, and the departure of any of those persons could cause our operating results to suffer; (25) our decentralized decision-making structure could allow local managers to make decisions that adversely affect our operating results; (26) liabilities for environmental damage may adversely affect our financial condition, business and earnings; (27) we rely on computer systems to run our business and disruptions or privacy breaches in these systems could impact our ability to service our customers and adversely affect our financial results, damage our reputation, and expose us to litigation risk; and (28) if we are not able to develop and protect intellectual property, or if a competitor develops or obtains exclusive rights to a breakthrough technology, our financial results may suffer. These risks and uncertainties, as well as others, are discussed in greater detail in our filings with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q. There may be additional risks of which we are not presently aware or that we currently believe are immaterial which could have an adverse impact on our business. We make no commitment to revise or update any forward-looking statements in order to reflect events or circumstances that may change.
- financial tables attached -
CONTACT:
Worthing Jackman / (832) 442-2266 Mary Anne Whitney / (832) 442-2253
worthingj@wasteconnections.com maryannew@wasteconnections.com
WASTE CONNECTIONS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF NET INCOME
THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2013 AND 2014
(Unaudited)
(in thousands, except share and per share amounts)
Three months ended September 30, Nine months ended September 30,
-------------------------------- -------------------------------
2013 2014 2013 2014
---- ---- ---- ----
Revenues $503,646 $546,551 $1,442,918 $1,552,953
Operating expenses:
Cost of operations 274,141 297,849 794,588 847,860
Selling, general and administrative 53,536 57,991 159,690 170,163
Depreciation 55,863 58,998 162,277 171,920
Amortization of intangibles 6,211 6,702 18,861 20,158
Loss (gain) on disposal of assets
and impairments (1,725) 9,000 11,895 7,535
Operating income 115,620 116,011 295,607 335,317
Interest expense (17,911) (15,815) (55,851) (48,666)
Other income (expense), net 845 (389) (119) (252)
--- ---- ---- ----
Income before income tax provision 98,554 99,807 239,637 286,399
Income tax provision (37,641) (39,523) (93,049) (113,992)
------- ------- ------- --------
Net income 60,913 60,284 146,588 172,407
Less: Net income attributable to
noncontrolling interests (207) (200) (359) (644)
---- ---- ---- ----
Net income attributable to Waste
Connections $60,706 $60,084 $146,229 $171,763
======= ======= ======== ========
Earnings per common share
attributable to Waste Connections'
common stockholders:
Basic $0.49 $0.48 $1.18 $1.38
===== ===== ===== =====
Diluted $0.49 $0.48 $1.18 $1.38
===== ===== ===== =====
Shares used in the per share
calculations:
Basic 123,676,936 124,342,493 123,557,317 124,179,478
=========== =========== =========== ===========
Diluted 124,279,666 124,769,981 124,089,422 124,778,292
=========== =========== =========== ===========
Cash dividends per common share $0.10 $0.115 $0.30 $0.345
===== ====== ===== ======
WASTE CONNECTIONS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(in thousands, except share and per share amounts)
December 31, September 30,
2013 2014
------------- --------------
ASSETS
Current assets:
Cash and equivalents $13,591 $13,327
Accounts receivable, net of
allowance for doubtful accounts of
$7,348 and $6,377 at December 31,
2013 and September 30, 2014,
respectively 234,001 262,346
Deferred income taxes 41,275 48,715
Prepaid expenses and other current
assets 39,638 36,131
------ ------
Total current assets 328,505 360,519
Property and equipment, net 2,450,649 2,450,067
Goodwill 1,675,154 1,687,915
Intangible assets, net 527,871 510,914
Restricted assets 35,921 38,636
Other assets, net 46,152 45,813
------ ------
$5,064,252 $5,093,864
========== ==========
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable $105,394 $113,303
Book overdraft 12,456 12,276
Accrued liabilities 119,026 146,019
Deferred revenue 71,917 78,440
Current portion of contingent
consideration 30,840 32,417
Current portion of long-term debt
and notes payable 5,385 3,621
----- -----
Total current liabilities 345,018 386,076
Long-term debt and notes payable 2,067,590 1,888,593
Long-term portion of contingent
consideration 24,710 25,236
Other long-term liabilities 77,035 85,675
Deferred income taxes 501,692 513,654
------- -------
Total liabilities 3,016,045 2,899,234
Commitments and contingencies
Equity:
Preferred stock: $0.01 par value;
7,500,000 shares authorized; none
issued and outstanding - -
Common stock: $0.01 par value;
250,000,000 shares authorized;
123,566,487 and 124,119,712 shares
issued and outstanding at December
31, 2013 and September 30, 2014,
respectively 1,236 1,241
Additional paid-in capital 796,085 813,308
Accumulated other comprehensive loss (1,869) (1,940)
Retained earnings 1,247,630 1,376,623
--------- ---------
Total Waste Connections' equity 2,043,082 2,189,232
Noncontrolling interest in
subsidiaries 5,125 5,398
----- -----
Total equity 2,048,207 2,194,630
--------- ---------
$5,064,252 $5,093,864
========== ==========
WASTE CONNECTIONS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
NINE MONTHS ENDED SEPTEMBER 30, 2013 AND 2014
(Unaudited)
(Dollars in thousands)
Nine months ended September 30,
2013 2014
---- ----
Cash flows from
operating activities:
Net income $146,588 $172,407
Adjustments to
reconcile net income
to net cash provided
by operating
activities:
Loss on disposal of
assets and
impairments 11,895 7,535
Depreciation 162,277 171,920
Amortization of
intangibles 18,861 20,158
Deferred income taxes,
net of acquisitions 24,411 4,572
Amortization of debt
issuance costs 2,836 2,362
Equity-based
compensation 11,268 13,889
Interest income on
restricted assets (295) (345)
Interest accretion 3,677 3,631
Excess tax benefit
associated with
equity-based
compensation (3,539) (7,177)
Payment of contingent
consideration
recorded in earnings (5,059) -
Net change in
operating assets and
liabilities, net of
acquisitions 12,484 25,674
------ ------
Net cash provided by
operating activities 385,404 414,626
------- -------
Cash flows from
investing activities:
Payments for
acquisitions, net of
cash acquired (2,031) (49,231)
Proceeds from
adjustments to
acquisition
consideration 18,000 843
Capital expenditures
for property and
equipment (140,872) (148,843)
Proceeds from disposal
of assets 9,075 6,139
Increase in restricted
assets, net of
interest income (81) (2,370)
Other (4,868) 18
------ ---
Net cash used in
investing activities (120,777) (193,444)
-------- --------
Cash flows from
financing activities:
Proceeds from long-
term debt 212,500 214,000
Principal payments on
notes payable and
long-term debt (418,316) (394,761)
Payment of contingent
consideration
recorded at
acquisition date (23,530) (578)
Change in book
overdraft (374) (180)
Proceeds from option
and warrant exercises 2,234 2,958
Excess tax benefit
associated with
equity-based
compensation 3,539 7,177
Payments for cash
dividends (37,005) (42,770)
Tax withholdings
related to net share
settlements of
restricted stock
units (5,421) (6,796)
Distributions to
noncontrolling
interests (198) (371)
Debt issuance costs (1,987) (125)
Net cash used in
financing activities (268,558) (221,446)
-------- --------
Net decrease in cash
and equivalents (3,931) (264)
Cash and equivalents
at beginning of
period 23,212 13,591
------ ------
Cash and equivalents
at end of period $19,281 $13,327
======= =======
ADDITIONAL STATISTICS
(Dollars in thousands)
Solid Waste Internal Growth: The following table reflects a breakdown of the components of our solid waste internal growth for the three months ended September 30, 2014:
Three months ended
September 30, 2014
------------------
Solid Waste Internal Growth:
Core Price 2.8%
Surcharges 0.0%
Volume 2.1%
Recycling (0.5%)
-----
Total Solid Waste Internal
Growth 4.4%
---
Revenue Breakdown: The following table reflects a breakdown of our revenue for the three and nine month periods ending September 30, 2014:
Three months ended Nine months ended
September 30, 2014 September 30, 2014
------------------ ------------------
Solid
Waste
Collection $333,917 54.3% $962,683 55.1%
Solid
Waste
Disposal
and
Transfer 167,129 27.2% 461,605 26.4%
E&P
Waste
Treatment,
Recovery
and
Disposal 86,085 14.0% 242,049 13.9%
Solid
Waste
Recycling 14,973 2.4% 44,713 2.6%
Intermodal
and
Other 12,604 2.1% 35,446 2.0%
------ --- ------ ---
Total
before
inter-
company
elimination 614,708 100.0% 1,746,496 100.0%
Inter-
company
elimination (68,157) (193,543)
------- --------
Reported
Revenue $546,551 $1,552,953
-------- ----------
Contribution from Acquisitions: The following table reflects revenues from acquisitions, net of divestitures, for the three month periods ending September 30, 2013 and 2014:
Three months ended
September 30,
-------------
2013 2014
---- ----
Solid waste, net $(371) $6,580
E&P waste, net 61,235 -
------ ---
Acquisitions, net $60,864 $6,580
======= ======
Other Cash Flow Items: The following table reflects cash interest and cash taxes for the three and nine month periods ending September 30, 2013 and 2014:
Three months ended Nine months ended
September 30, September 30,
------------- -------------
2013 2014 2013 2014
---- ---- ---- ----
Cash Interest Paid $9,129 $6,920 $43,030 $37,950
Cash Taxes Paid 32,670 48,382 51,010 89,643
ADDITIONAL STATISTICS (continued)
Debt to Book Capitalization as of September 30, 2014: 46%
Internalization for the three months ended September 30, 2014: 52%
Days Sales Outstanding for the three months ended September 30, 2014: 44 (31 net of deferred revenue)
Share Information for the three months ended September 30, 2014:
Basic shares outstanding 124,342,493
Dilutive effect of options
and warrants 62,205
Dilutive effect of restricted
stock units 365,283
-------
Diluted shares outstanding 124,769,981
NON-GAAP RECONCILIATION SCHEDULE
(in thousands)
Reconciliation of Adjusted EBITDA:
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 the Company's operations. Waste Connections defines adjusted EBITDA as net income, plus income tax provision, plus interest expense, plus depreciation and amortization expense, plus closure and post-closure accretion expense, plus or minus any loss or gain on disposal of assets and impairments, plus other expense, less other income. The Company further adjusts this calculation to exclude the effects of other items management believes impact the ability to assess the operating performance of our business. This measure is not a substitute for, and should be used in conjunction with, GAAP financial measures. Other companies may calculate adjusted EBITDA differently.
Three months ended Nine months ended
September 30, September 30,
------------- -------------
2013 2014 2013 2014
---- ---- ---- ----
Net income $60,913 $60,284 $146,588 $172,407
Plus: Income tax
provision 37,641 39,523 93,049 113,992
Plus: Interest expense 17,911 15,815 55,851 48,666
Plus: Depreciation and
amortization 62,074 65,700 181,138 192,078
Plus: Closure and
post-closure
accretion 727 869 2,241 2,608
Plus/Less: Loss
(gain) on disposal of
assets and
impairments (a) (1,725) 9,000 11,895 7,535
Plus/Less: Other
expense (income), net (845) 389 119 252
Adjustments:
Plus: Acquisition-
related costs (b) 167 736 974 1,384
Plus: Corporate
relocation expenses
(c) 215 - 636 -
Adjusted EBITDA $177,078 $192,316 $492,491 $538,922
======== ======== ======== ========
As % of revenues 35.2% 35.2% 34.1% 34.7%
____________________________________________
(a) Reflects the addback of the loss
(gain) on the sale of assets and
impairments, including the loss
on the prior corporate office
lease in 2013 resulting from the
relocation of the Company's
headquarters from California to
Texas and the impairment charge
at an E&P disposal facility in
2014 resulting from the
migration of the majority of its
customers to a new E&P facility
that the Company owns and
operates.
(b) Reflects the addback of
acquisition-related transaction
costs.
(c) Reflects the addback of costs
associated with the relocation
of the Company's corporate
headquarters from California to
Texas.
NON-GAAP RECONCILIATION SCHEDULE (continued)
(in thousands)
Reconciliation of Adjusted Free Cash Flow:
Adjusted free cash flow, a non-GAAP financial measure, is provided supplementally because it is widely used by investors as a valuation and liquidity measure in the solid waste industry. Management uses adjusted free cash flow as one of the principal measures to evaluate and monitor the ongoing financial performance of the Company's operations. Waste Connections defines adjusted free cash flow as net cash provided by operating activities, plus proceeds from disposal of assets, plus or minus change in book overdraft, plus excess tax benefit associated with equity-based compensation, less capital expenditures for property and equipment and distributions to noncontrolling interests. The Company further adjusts this calculation to exclude the effects of items management believes impact the ability to assess the operating performance of its business. This measure is not a substitute for, and should be used in conjunction with, GAAP liquidity or financial measures. Other companies may calculate adjusted free cash flow differently.
Three months ended Nine months ended
September 30, September 30,
------------- -------------
2013 2014 2013 2014
---- ---- ---- ----
Net cash provided by
operating activities $129,881 $134,945 $385,404 $414,626
Less: Change in book
overdraft (284) (198) (374) (180)
Plus: Proceeds from
disposal of assets 5,453 276 9,075 6,139
Plus: Excess tax benefit
associated with equity-
based compensation 872 80 3,539 7,177
Less: Capital expenditures
for property and
equipment (53,331) (65,164) (140,872) (148,843)
Less: Distributions to
noncontrolling interests - - (198) (371)
Adjustments:
Payment of contingent
consideration recorded in
earnings (a) 5,059 - 5,059 -
Corporate office
relocation (b) 215 - 2,047 -
Tax effect (c) (82) - (244) -
--- --- ---- ---
Adjusted free cash flow $87,783 $69,939 $263,436 $278,548
======= ======= ======== ========
As % of revenues 17.4% 12.8% 18.3% 17.9%
____________________________________________
(a) Reflects the addback of
acquisition-related payments
for contingent consideration
that were recorded as expenses
in earnings and a component of
cash flow from operating
activities as the amounts paid
exceeded the fair value of the
contingent consideration
recorded at the acquisition
date.
(b) Reflects the addback of third
party expenses and reimbursable
advances to employees associated
with the relocation of our
corporate headquarters from
California to Texas.
(c) The tax effect of the corporate
office relocation is calculated
based on the applied tax rates
for the respective periods.
NON-GAAP RECONCILIATION SCHEDULE (continued)
(in thousands, except per share amounts)
Reconciliation of Net Income to Adjusted Net Income and Adjusted Net Income per Diluted Share:
Adjusted net income and adjusted net income per diluted share, both non-GAAP financial measures, are provided supplementally because they are widely used by investors as a valuation measure in the solid waste industry. Management uses adjusted net income and adjusted net income per diluted share as one of the principal measures to evaluate and monitor the ongoing financial performance of the Company's operations. Waste Connections provides adjusted net income to exclude the effects of items management believes impact the comparability of operating results between periods. Adjusted net income has limitations due to the fact that it excludes items that have an impact on the Company's financial condition and results of operations. Adjusted net income and adjusted net income per diluted share are not a substitute for, and should be used in conjunction with, GAAP financial measures. Other companies may calculate adjusted net income and adjusted net income per diluted share differently.
Three months ended Nine months ended
September 30, September 30,
------------- -------------
2013 2014 2013 2014
---- ---- ---- ----
Reported net income
attributable to Waste
Connections $60,706 $60,084 $146,229 $171,763
Adjustments:
Amortization of
intangibles (a) 6,211 6,702 18,861 20,158
Acquisition-related
expenses (b) 167 736 2,661 1,384
Loss (gain) on disposal
of assets and
impairments (c) (1,725) 9,000 11,895 7,535
Corporate relocation
expenses (d) 215 - 636 -
Tax effect (e) (1,862) (6,304) (13,025) (11,151)
Impact of deferred tax
adjustment (f) - - - 1,220
Adjusted net income
attributable to Waste
Connections $63,712 $70,218 $167,257 $190,909
Diluted earnings per
common share
attributable to Waste
Connections' common
stockholders:
Reported net income $0.49 $0.48 $1.18 $1.38
===== ===== ===== =====
Adjusted net income $0.51 $0.56 $1.35 $1.53
===== ===== ===== =====
____________________________________________
(a) Reflects the elimination of the
non-cash amortization of
acquisition-related intangible
assets.
(b) Reflects the elimination of
acquisition-related expenses,
including transaction costs and
adjustments to the fair value of
contingent consideration.
(c) Reflects the elimination of a loss
(gain) on disposal of assets and
impairments, including the loss on
the prior corporate office lease
in 2013 resulting from the
relocation of the Company's
corporate headquarters from
California to Texas and the
impairment charge at an E&P
disposal facility in 2014
resulting from the migration of
the majority of its customers to a
new E&P facility that the Company
owns and operates.
(d) Reflects the addback of costs
associated with the relocation of
the Company's corporate
headquarters from California to
Texas.
(e) The aggregate tax effect of the
adjustments in footnotes (a)
through (d) is calculated based on
the applied tax rates for the
respective periods.
(f) Reflects the elimination of an
increase to the income tax
provision associated with an
increase in the Company's deferred
tax liabilities resulting from the
enactment of New York State's
2014-2015 Budget Act on March 31,
2014.
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SOURCE Waste Connections, Inc.
