Boyne City, Michigan-based Industrial Magnetics Inc. has acquired substantially all of the assets of Walker Magnetics Group Inc., which was founded in 1896 in Worcester, Massachusetts.

According to a news release from Industrial Magnetics, Walker Magnetics is North America’s “oldest industrial magnet manufacturer.” The company was founded upon the invention of the electromagnetic chuck by Oakley S. Walker and has since grown into a provider of custom and standard magnetic products for work-holding, lifting, material handling, scrap magnets and separation applications. Over its 125-year history, Industrial Magnetics reports that a diverse range of industries have come to recognize Walker Magnetics products’ reliability across a broad spectrum of unique and general manufacturing applications.

“The acquisition of Walker Magnetics marks Industrial Magnetics’ next step in expanding our permanent, electromagnetic and electro-permanent magnetic technology and systems for industrial applications,” says Dennis O’Leary, Industrial Magnetics’ chief business development officer. “It also broadens our industry-best roster of lift magnets and establishes Industrial Magnetics as a leader in the work-holding segment with a complete lineup of permanent, electromagnetic and electro-permanent magnetic chucks.

He continues, “With strong brand recognition and highly complementary products, we are excited about the opportunities to grow both businesses while maintaining our industry-best lead time, reliability and quality. Industrial Magnetics intends to be a thoughtful steward to the Walker Magnetics legacy, history and brand with continued investment in its long-term growth.”

Industrial Magnetics was founded in 1961 and provides permanent and electromagnetic solutions.

Waste Connections Inc., Ontario, Canada, has announced its results for the fourth quarter of 2020 on Feb. 17.

According to the company, revenue in the fourth quarter totaled $1.398 billion, up from $1.362 billion in the year ago period. Operating income was $197.1 million, which included $24.1 million of impairments and other operating items primarily related to an adjustment to the carrying values of certain acquired long-lived assets and $5.3 million of acquisition-related costs. This compares to operating income of $194.2 million in the fourth quarter of 2019, which included $32.7 million of costs primarily resulting from impairments and other operating items.

Net income in the fourth quarter was $130.7 million, or $0.50 per share on a diluted basis of 263.6 million shares. In the year ago period, the company reported net income of $133.3 million, or $0.50 per share on a diluted basis of 264.6 million shares.

Adjusted net income in the fourth quarter was $178.6 million, or $0.68 per diluted share, versus $181.4 million, or $0.69 per diluted share, in the prior year period.  Adjusted EBITDA in the fourth quarter was $426.6 million, as compared to $419.0 million in the prior year period.

For the year ended December 31, 2020, revenue was $5.446 billion, as compared to $5.389 billion in the year ago period. Operating income, which included $482.1 million in costs primarily related to the decrease in property and equipment at certain E&P landfills as a result of the company's impairment testing, was $412.4 million, as compared to $837.8 million in the prior year, which included $77.4 million of costs primarily resulting from impairments and other operating items.

Net income in 2020 was $204.7 million, or $0.78 per share on a diluted basis of 263.7 million shares.  In the year ago period, the company reported net income of $566.8 million, or $2.14 per share on a diluted basis of 264.5 million shares.

Adjusted net income in 2020 was $695.8 million, or $2.64 per diluted share, compared to $719.6 million, or $2.72 per diluted share, in the year ago period. Adjusted EBITDA in 2020 was $1.662 billion, as compared to $1.674 billion in the prior year period.

"Q4 capped off a remarkable year for Waste Connections, culminating in a solid beat in the period and providing a higher entry point into 2021,” says Worthing F. Jackman, president and CEO of Waste Connections. “A more than 250 basis points higher than expected improvement in solid waste volumes and increased values for recycled commodities and renewable fuels drove adjusted EBITDA margins 50 basis points above expectations for the quarter.  Moreover, we converted more than 50 percent of adjusted EBITDA to adjusted free cash flow in the year, while positioning ourselves for double-digit percentage growth in adjusted free cash flow in 2021.”

Jackman adds, “2020 was also noteworthy for the pace of acquisition activity, which accelerated in the fourth quarter to drive another outsized year of activity and an incremental 2 percent rollover revenue growth from such acquisitions in 2021. Acquisition dialogue remains elevated and given the strength of our balance sheet, we remain well positioned to fund additional acquisitions, while also increasing return of capital to shareholders through opportunistic share repurchases and dividend growth. With expected solid waste pricing plus volume growth of 5 percent and increasing recycling and renewable fuels values, 2021 is already positioned for continued growth and margin expansion, with upside from any further reopening activity, recovery in the economy or acquisitions completed during the year.”

Financial impact from COVID-19

Throughout the COVID-19 pandemic, Waste Connections says revenue from solid waste commercial collection, transfer and disposal has largely reflected the extent to which the slowdown in activity associated with shelter-in-place or other closure restrictions or requirements in effect since Q1 of 2020 have persisted.

Q2 was the first full quarter to reflect the impacts from the COVID-19 pandemic, and activity levels in impacted lines of business have shown improvement in subsequent quarters. Recoveries in more impacted markets, particularly those where reopenings continue to be delayed or where additional restrictions have been imposed, have generally been less pronounced.

The company has seen the following trends since Q2:

• Solid waste collection, transfer and disposal revenue improved from down 5.3 percent in Q2 to up 0.7 percent year over year on a same store basis in Q4, with reported solid waste volumes improving from down 9.6 percent in Q2 to down 3.1 percent in Q4.
• Year-over-year landfill tons, which were down approximately 10 percent in Q2, improved to down about 5 percent in Q4, and roll-off pulls improved from down approximately 11 percent in Q2 to down about 4 percent in Q4.
• Service resumptions or increases in frequency in solid waste commercial collection in competitive markets Waste Connections tracks that had previously suspended or reduced service due to the COVID-19 pandemic improved from recovery levels of 42 percent of such impacted revenue through Q2 to 56 percent at year end 2020.

You don’t become the largest privately held, vertically integrated provider of solid waste services in the New York City and northern New Jersey markets by accident.

For Michael DiBella, the founding of Interstate Waste in 1999 was three generations in the making.

DiBella’s grandfather, Frank, formed Frank DiBella Sanitation Inc. in 1947 to serve northern New Jersey and New York state. Michael DiBella’s father, Philip, and uncle, Steve, took over the one-truck operation in the 1960s and developed it into a 100-truck company doing $50 million a year in business when it was sold to Waste Management in 1998.

By the time the family business was sold, Michael had already leveraged years of experience growing up in the industry to establish his own footprint in the space.

Michael started driving trucks for DiBella Sanitation after graduating high school in 1985. After working as a driver for several years, he advanced in various positions from sales to operations. At the time the business was sold, DiBella was working as the company’s general manager.

Along the way, Michael ventured out to Albany, New York, to start his own commercial and industrial waste business, Environmental Waste Industries Inc., in 1991. Michael kept his roles at both companies until both entities were sold to Waste Management in 1998.

After both businesses were sold, Michael founded Interstate Waste and started operating in Rockland County, New York. At the time, he says it was approximately a $2 to $3 million business.

According to DiBella, the decision to form Interstate was born out of the realization that there might be an opening for a private waste company with familiarity with the community in the region.

“By the time my dad sold the business in ‘98 to Waste Management, new entrants, mainly publicly traded waste companies were busy buying up the industry in New Jersey in particular,” he says. “And I felt there was going to be an opportunity to start back up in the business and be competitive with the public companies in our marketplace. They took a big chunk of the private sector out and now it was dominated by public companies, and I thought I would have a good opportunity to build a business there.”

He says that the company’s boots on the ground, organic approach to building business and servicing customers helped propel Interstate’s rapid growth in those early years.

“We just organically grew from going out, chasing the business, working on sales, going and seeing customers— residential commercial and industrial businesses—we were going after it all,” he says.

Within two years, DiBella’s aggressive approach helped develop the company into a $25 million player in the region.

With its footprint established, DiBella wanted to begin pursuing smaller acquisitions as a way to accelerate Interstate’s growth. However, without the capital to make the moves he wanted to make, DiBella made the strategic decision to partner with Summer Street Capital and Ironwood Capital.

Interstate’s first private equity deal involved buying a small divestiture from Waste Management in its marketplace after the company was forced to sell off assets from an Allied Waste deal. The result was approximately $9 million in collection business and two transfer stations coming into the Interstate fold.

“We had the opportunity to take on Waste Management’s assets, and we were successful in integrating the operations,” he says. “It really catapulted Interstate Waste and made the company a real player in the market. Up to that point, we were a collection-only business, which is extremely challenging, especially in our marketplace where there are no landfills. Having transfer station capacity is essential in the northern New Jersey market. After acquiring the Waste Management transfer assets, we went on a real run, acquiring mom-and-pop-type businesses that were really very similar in operations to the business my father built.”

DiBella says armed with the capital backing of Summer Street and other private equity investors, his familiarity and established relationships with the people working in the industry helped grease the skids in terms of pursuing acquisitions of local companies.

“Being around my father’s business growing up, I got to know the industry players pretty well through those day-to-day business dealings. So, when walking in the door of a competitor to pitch the idea of buying their family business, it wasn’t coming from a stranger. And I think that contributed to our success of acquiring a bunch of companies,” he says.

After completing a string of deals and building Interstate into a $150 million company, DiBella sold the company to Highstar Waste Holdings in 2006, which later became part of Advanced Disposal.

A new chapter

DiBella says instead of continuing to work for Interstate after selling to Highstar, he purchased a controlling interest in Action Carting’s New York City operations in partnership with Ironwood in 2006, and shortly thereafter, acquired the New York City collection assets from Waste Management, who was looking to exit collection operations in NYC.

“Action was a $25 million a year business at that point, and we bought about $40 million of collection business from Waste Management,” DiBella explains. “So, it really grew the company quickly. We ended up doing the same thing we did in New Jersey prior, which is work to acquire mom-and-pop businesses throughout the city.”

In 2010, in collaboration with Summer Street, Action Carting and DiBella purchased the New York City transfer and collection assets of Republic Services, further building the Action footprint in the five boroughs. As DiBella was busy growing Action Carting, he got word that Highstar Waste Holdings may be interested in divesting Interstate Waste after struggling to gain footing in the region. In 2013, he bought back the company he started a decade and a half earlier.

"Being around my father’s business growing up, I got to know the industry players pretty well through those day-to-day business dealings. So, when walking in the door of a competitor to pitch the idea of buying their family business, it wasn’t coming from a stranger.” –Michael DiBella, CEO, Interstate Waste Services

“Summer Street Capital and its Managing Partner Brian D’Amico have been supporting the growth of Interstate Waste since their original investment in 2003,” DiBella says. “They financed our growth through acquisition strategy [including with] Action Carting and the subsequent acquisitions of the New York City collection assets of Waste Management, the New York City transfer and collection assets of Republic Services, the buy-back of Interstate Waste in 2013 and many other tuck-in acquisitions over the last 17 years. Summer Street’s industry knowledge and financial support aided our growth … and they have been great partners for many years now.”

DiBella says after doing “a lot of rehab” to strengthen the company over the last several years, the opportunity to vertically integrate its services became a reality when it purchased Apex Environmental in 2020. The company partnered with Littlejohn & Co. to finance the acquisition. This deal yielded two rail-served transfer stations, one rail transloading yard and a rail-served landfill in Amsterdam, Ohio. Subsequently, DiBella integrated Action Environmental and Apex Environmental under the Interstate Waste Services brand.

“The Apex deal is just a game-changer for us because we are a sizeable collector in the five boroughs and northern New Jersey, but up until the Apex deal, we didn’t control our own destiny in terms of disposal,” he says. “We all viewed it as a key element to continuing to grow the business, and it was a necessity, quite frankly. We worked hard at getting the deal done, and now we’re in the middle of integrating services, so it’s been an exciting run over the last 20 years.”

A closer look

Today, Interstate Waste has approximately 1,200 employees. The company boasts around 375 collection trucks and counts 20 transfer stations (including two with direct rail service), one rail transload facility, three material recycling facilities (MRFs) and one rail-served landfill as assets.

The company’s collection customers weigh heavily towards commercial accounts (approximately 90 percent of its business), with the balance comprising residential and specialty industrial customers.

As Interstate’s history suggests, the company’s composition doesn’t remain stagnant for long.

In January, Interstate acquired a 57-year-old family business, Bernardsville, New Jersey-based Rubinetti Disposal, which will help establish the company in the central New Jersey collection market, DiBella says.

Despite some of the obstacles of operating in the competitive New York City/New Jersey markets, DiBella says Interstate has embraced these difficulties as it plans for future development.

“New York City is a unique market for collection companies,” he says. “Most of the activity takes place between 9 p.m. and 6 a.m. and consists primarily of loose bags on the street served by rear load collection trucks. Only the larger facilities are served through traditional containers such as roll-off compactors. Operating in a densely populated urban city at night with constant and heavy traffic presents unique challenges for service and safety. It’s a constant focus for our team. We enjoy that challenge, and serving one of the greatest cities in the world is a real source of pride.

“Northern and central New Jersey are highly populated and growing markets where Interstate Waste is excited to continue to expand its market share—both commercial and residential. By having strong collection coverage, a network of transfer stations and MRFs, and the ability to move waste by rail, we feel Interstate is uniquely positioned to serve the growing New Jersey market.”

While DiBella says the vision for the business is to focus on providing a full range of customer service solutions for commercial, residential and industrial customers, the company’s high concentration of commercial accounts makes New York City’s pending Commercial Waste Zone guidelines a central concern for the company.

The New York City Department of Sanitation (DSNY) originally released its Commercial Waste Zone plan in November 2018, citing safety, environmental and nuisance concerns as the impetus for reducing the number of waste service providers in the city. Under the plan, DSNY will divide the city into 20 zones, each served by only a few carters selected through a competitive process.

"Interstate Waste is engaging with all stakeholders. ... Given the impact of COVID on New York City, in particular, the timing of implementing such a disruptive change for commercial establishments is concerning.” –Michael DiBella, CEO, Interstate Waste Services

According to DiBella, though the plan is noble in its aim, the current plans for implementation could put undue stress on haulers and their customers, especially during the COVID pandemic and its aftermath.

“Interstate Waste is engaging with all stakeholders in an attempt to have a positive impact on the continued development of the rules. Given the impact of COVID on New York City, in particular, the timing of implementing such a disruptive change for commercial establishments is concerning. It may take 12 to 24 months for the region to recover, and adding new regulation and substantive change during this crisis and pending recovery is not ideal. We would certainly support an extended timeline for rulemaking, RFP and implementation. We remain hopeful that Commercial Waste Zones will ultimately have a positive impact on the collection industry in New York City, but much work needs to be done on improving the rules, the implementation timeline and overall transition plan.”

DiBella says that ensuring greener waste collection in the region through reduced truck traffic is something that is a core focus of Interstate. Thanks to the company’s new rail access, DiBella says they’ll be able to significantly cut emissions for collection and disposal.

“Similar to the objectives of the Commercial Waste Zones initiative, moving waste by rail significantly reduces truck traffic and vehicle miles traveled. For example, a single train can handle the freight of approximately 280 long-haul trucks. We move a train each day of the week, saving approximately 2,000 truck movements, or 390,000 truck miles in a single week,” he says. “With our rail infrastructure, Interstate is now able to provide curb collection to final disposal in an efficient, environmentally friendly manner. We have made significant investments in our rail infrastructure and we are excited for the impact it will have in the coming years.”

In addition to being a conduit for integrating its operations and limiting its environmental output, DiBella says the company’s rail infrastructure is anticipated to play a major role as the company looks to grow throughout the region via M&A.

“Without question, we plan to continue to grow the Interstate footprint throughout the Northeast and leverage our rail infrastructure,” he says. “We have an active pipeline of target businesses with many providing a great strategic and cultural fit, especially in our core markets of New York and New Jersey.”

While the company looks to grow beyond its New York City and northern New Jersey roots, it’s the relationships and lessons learned through these partnerships that will guide the company as it builds on its past successes.

“Many managers and employees at our company have 20 to 30 years of experience working together in this business. Very few companies have that level of continuity from management to driver to mechanic,” DiBella says. “Our employees have grown up together servicing customers in their own back yard. Maintaining that continuity long term, as we grow, is one of our key objectives.”

This article originally ran in the Jan. Feb. issue of Waste Today. The author is the editor of Waste Today and can be reached at aredling@gie.net. 

Waste Management Inc., Houston, has announced financial results for the fourth quarter of 2020 as well as the full year. The company’s fourth-quarter results continued the positive momentum from the third quarter as organic revenue growth in the collection and disposal business was nearly flat year-over-year and improved 250 basis points sequentially and 890 basis points from the low in the second quarter.

Additionally, the company maintained its focus on cost and capital management. As a result, fourth-quarter adjusted operating earnings before interest, taxes, depreciation and amortization (EBITDA)) increased 4.1 percent year over year when normalized to exclude the acquisition of Advanced Disposal as well as timing differences in the government approvals of alternative fuel tax credits. This growth was achieved despite macroeconomic challenges stemming from the COVID-19 pandemic.

“I am extremely proud of how our team worked through the challenges during 2020 to provide reliable, high-quality service and continued to do so as we welcomed new customers and team members following our acquisition of Advanced Disposal,” Waste Management President and CEO Jim Fish says. “Our focus on operational execution and efficiency allowed us to match the highest full-year adjusted operating EBITDA margin we have ever achieved at 28.4 percent. So, in a year where many companies suffered significant financial impacts from the pandemic and resulting economic crisis, Waste Management delivered full-year 2020 results within 1.5 percent of our record-high 2019 adjusted operating EBITDA.

“Complementing our strong financial performance is the recognition that we continue to receive for leading the way to a more sustainable future. Fortune magazine recently named Waste Management to its 2021 World’s Most Admired Companies List, and for the fifth consecutive year, CDP included Waste Management on its ‘A List’ for climate leadership. We remain committed not only to managing waste responsibly but also investing in recycling infrastructure and renewable energy projects and collaborating with our stakeholders to create new, sustainable environmental solutions.”

Key highlights for the quarter and full year include:

Revenue

• In the fourth quarter, revenue increased $185 million in the company’s collection and disposal business compared with the fourth quarter of 2019, primarily driven by $202 million in acquisition revenue and $79 million of growth from yield partially offset by $93 million in volume declines. For the full year, revenue decreased $141 million in the company’s collection and disposal business compared with 2019, primarily driven by $669 million in volume declines partially offset by $299 million of growth from yield and $244 million in acquisition revenue.
• Core price for the fourth quarter of 2020 was 3.2 percent compared with 4.3 percent in the fourth quarter of 2019. For the full year, core price was 2.9 percent for 2020 compared with 4.2 percent in 2019.
• Collection and disposal yield was 2.3 percent in the fourth quarter of 2020 compared with 3.2 percent in the fourth quarter of 2019. For the full year, collection and disposal yield was 2.2 percent in 2020 compared with 2.8 percent in 2019.
• The company’s 2020 pricing results were muted relative to historical results due to deliberate customer-centric steps taken during the second quarter to temporarily suspend price increases and certain fees for customers impacted by the COVID-19 pandemic. The company says it remains committed to its pricing programs as evidenced by the company’s strong post-collection and residential yield.
• Total company volumes declined 2.6 percent in the fourth quarter of 2020 compared with a decline of 5.1 percent in the third quarter of 2020 and a decline of 0.4 percent in the fourth quarter of 2019. For the full year, total company volumes declined 4.5 percent in 2020 compared with growth of 2.3 percent in 2019.

Cost management

• Total company operating expenses were 61.5 percent of revenue in the fourth quarter of 2020 compared with 60.2 percent in the fourth quarter of 2019. The increase was primarily driven by an unfavorable comparison for alternative fuel tax credits of 150 basis points. For the full year, total company operating expenses were 61.4 percent of revenue in 2020 and 2019.
• Selling, general and administrative (SG&A) expenses were 12.5 percent of revenue in the fourth quarter of 2020 compared with 11.6 percent in the fourth quarter of 2019. On an adjusted basis, SG&A expenses were 10.4 percent of revenue in the fourth quarter of 2020 compared with 10.7 percent in the fourth quarter of 2019. For the full year, SG&A expenses were 11.4 percent of revenue in 2020 compared with 10.6 percent in 2019. On an adjusted basis, SG&A expenses were 10.2 percent of revenue in 2020 compared with 10.3 percent in 2019.
• The recently closed Advanced Disposal acquisition increased operating expenses as a percentage of revenue by 40 basis points in the fourth quarter of 2020 and had an immaterial impact on adjusted SG&A expenses as a percentage of revenue in the fourth quarter of 2020.

Profitability

• Total company operating EBITDA was $1.09 billion, or 26.8 percent of revenue, for the fourth quarter of 2020 compared with $1.05 billion, or 27.3 percent of revenue, for the fourth quarter of 2019. On an adjusted basis, total company operating EBITDA was $1.14 billion, or 28.1 percent of revenue, for the fourth quarter of 2020 compared with adjusted operating EBITDA of $1.12 billion, or 29.1 percent of revenue, for the same period in 2019. The margin decreases were driven by an unfavorable comparison for alternative fuel tax credits of 150 basis points.
• For the full year, total company operating EBITDA was $4.11 billion, or 27 percent of revenue, for 2020 compared with  $4.28 billion, or 27.7 percent of revenue, for 2019. On an adjusted basis, total company operating EBITDA was $4.32 billion for 2020 compared with adjusted operating EBITDA of $4.38 billion for 2019. Adjusted operating EBITDA was 28.4 percent of revenue in both years, demonstrating the company’s focus on controlling costs in the lower volume environment
• The recently closed Advanced Disposal acquisition had a negative 50 basis point impact on adjusted operating EBITDA as a percentage of revenue in the fourth quarter of 2020.
• In the fourth quarter of 2020, the company realized between $10 and $15 million of annualized run-rate synergies from the acquisition of Advanced Disposal.

Free cash flow and capital allocation

• In the fourth quarter of 2020, net cash provided by operating activities was $753 million compared with $1.02 billion in the fourth quarter of 2019. For the full year, net cash provided by operating activities was $3.4 billion in 2020 compared with $3.87 billion in 2019. The year-over-year comparisons were impacted by an increase in cash taxes, which was due in large part to the tax gain realized on the sale of assets and businesses to GFL Environmental.
• During the second and third quarters of 2020, the company deferred payment of payroll taxes as provided for by the CARES (Coronavirus Aid, Relief and Economic Security) Act. In light of the company's financial performance and operating cash flow, management elected to pay the previously deferred 2020 payroll taxes in the fourth quarter. While there is no impact of this decision on the comparison of 2020 and 2019 cash flow from operations, this decision decreased fourth quarter and full-year 2020 cash flow by approximately $120 million from the prior outlook.
• In the fourth quarter of 2020, capital expenditures were $394 million compared with $286 million in the fourth quarter of 2019. For the full year, capital expenditures were $1.63 billion in 2020 compared with $1.82 billion in 2019 as the company took steps to reduce and defer certain aspects of capital spending.
• In the fourth quarter of 2020, the company closed on the sale to GFL Environmental of the assets required to be divested by the U.S. Department of Justice in connection with the Advanced Disposal acquisition. Proceeds from divestures were $865 million during the fourth quarter of 2020, with $856 million of this related to the divestitures to GFL Environmental. For the full year, proceeds from divestures were $885 million in 2020 compared with $49 million in 2019.
• In the fourth quarter of 2020, free cash flow was $1.22 billion compared wth $756 million in the fourth quarter of 2019. For the full year, free cash flow was $2.66 billion in 2020 compared with $2.11 billion in 2019.
• During the fourth quarter of 2020, the company paid $231 million of dividends to shareholders.

2021 outlook

Revenue growth

• Total company revenue growth is expected to be between 10.75 percent and 11.25 percent. Combined internal revenue growth from yield and volume in the collection and disposal business is expected to be between 4 percent and 4.5 percent, primarily driven by the company’s pricing programs which are expected to result in core price of 4 percent or greater and yield of approximately 2.5 percent.

Profitability

• Adjusted operating EBITDA is expected to be between $4.75 and $4.9 billion for the full year.
• Synergies from the completed acquisition of Advanced Disposal are included in this measure and are expected to be between $50 million and $60 million in 2021.

Free cash flow and capital allocation

• Free cash flow is projected to be between $2.25 and $2.35 billion.
• Capital expenditures are expected to be in the range of $1.78 to $1.88 billion.
• The company is committed to returning its leverage ratio, as defined in its revolving credit facility financial covenant, to its targeted long-term range of between 2.5 and 3-to-1 during 2021.
• The board of directors has indicated its intention to increase the dividend by $0.12 per share to $2.30 on an annual basis for an approximate annual cost of $975 million. This represents the 18^th consecutive year of increases in the company’s per-share dividend. The board of directors must separately approve and declare each dividend.
• In December 2020, the board of directors refreshed the company’s share repurchase authorization, allowing for the repurchase of up to $1.35 billion of the company’s common stock, signaling confidence in the cash flow outlook.

Fish concludes, “In 2020, we quickly and successfully learned to operate our business with a lower cost structure while maintaining our focus on exceptional customer service. We also completed the acquisition of Advanced Disposal and accelerated our customer service digitalization investments, all while matching our highest adjusted operating EBITDA margin and generating strong cash flow. In 2021, we will continue to make investments in technology that transform our business and integrate the Advanced Disposal business, and we are well-positioned to generate strong returns.”