Earnings and Finance

Advanced Disposal reports $20 million loss in Q4 2016

Advanced Disposal Services Inc., Ponte Vedra, Florida, has announced revenue for the three months ended Dec. 31, 2016, of $352 million versus $349.6 million in the same period of the prior year. Net loss during the fourth quarter of 2016 was $20.1 million versus a net loss of $8.8 million in the fourth quarter of 2015.

The company reported quarterly adjusted earnings before interest, tax, depreciation and amortization (EBITDA) and adjusted EBITDA margins of $107.7 million and 30.6 percent, respectively, an increase of $6.2 million in adjusted EBITDA and 160 basis points in adjusted EBITDA margins versus 4Q 2015.

During the fourth quarter of 2016, the company completed its initial public offering, raising nearly $375 million net of fees between the initial share issuance and the underwriters exercising their option to purchase additional shares. Those proceeds were used to repay debt.

Advanced refinanced its outstanding debt and credit facility in the fourth quarter. This debt refinancing, coupled with the debt repayments from the initial public offering, is expected to save over $30 million in cash interest savings annually.

A $64.7 million pretax loss on debt extinguishments and modifications was recorded, driving the decline in fourth quarter net income. However, fourth quarter adjusted net income, which includes an adjustment for the debt refinancing charge, was $17.2 million, an increase of $11.7 million versus 4Q 2015.

For the full year ended Dec. 31, 2016, revenue was $1.4 billion versus $1.3 billion for the prior year period. Net loss improved $3.2 million to $30.4 million, and adjusted net income increased $17.6 million to $33.5 million.

CEO Richard Burke CEO says, “Overall, the combination of continued execution of our operating strategy, along with capital structure improvements, positions us well to generate strong cash provided by operating activities in 2017.”