Advanced Disposal announces second quarter results

Advanced Disposal Services Inc., Ponte Vedra, Florida, announced revenue of $419.1 million for the second quarter versus $398.1 million in the same period of the prior year. Net loss during the second quarter 2019 was $1 million or $0.01 per diluted share, and adjusted net income, which excludes certain gains and expenses, was $9 million, or $0.10 per diluted share.

"Our core business remains strong with 5.3 percent revenue growth, including 3.2 percent of pricing gains during second quarter 2019," Advanced CEO Richard Burke says. "Additionally, our commitment to the customers we serve, the safety of our employees, and the communities we operate in has never been stronger as we continue to live out our “service first, safety always” culture.  While we have experienced some headwinds year-to-date largely due to recycling, interest costs, and leachate from wet operating conditions, we are pleased that we have generated $148.5 million of cash flow from operations and $76.5 million of adjusted free cash flow."

Advanced’s second quarter financial highlights, include:

• Revenue of $419.1 million represented a 5.3 percent year-over-year increase
• Achieved total organic growth of 4.0 percent, which included average yield of 3.2 percent and volume growth of 0.8 percent
• Year-over-year growth from acquisitions was 1.5 percent
• Net loss was $1 million, or $0.01 per diluted share. This included charges of $9.7 million for a fee case settlement, $9.6 million for landfill remediation expenses, and $3.6 million for merger-related costs, along with a net benefit of $13.7 million related to a 2012 tax audit settlement
• Achieved adjusted EBITDA of $110.0 million, which included a $2.6 million year-over-year headwind related to declining recycling prices and higher recycling processing costs
• Cash provided by operating activities was $148.5 million year-to-date 2019
• Adjusted free cash flow year-to-date was $76.5 million

Waste Management acquisition

On April 14, Advanced Disposal entered into a merger agreement with Houston-based Waste Management Inc. whereby a subsidiary of Waste Management will acquire all outstanding shares of Advanced Disposal for $33.15 per share in cash. In light of the pending transaction, Advanced elected to cease conducting quarterly earnings conference calls until transaction closing. The company also elected to enter into an extended quiet period related to investor communications and is no longer providing forward-looking guidance until the transaction is closed.