Advanced Disposal reports first quarter loss

Advanced Disposal Services Inc., Ponte Vedra, Florida, has announced results for the quarter ended March 31, 2016, that point to slightly higher revenue compared to the first quarter of 2015, but the firm nonetheless reported a net income loss.

The company says it took in $333.8 million in revenue in the first quarter of 2016 versus $330.4 million in the same period of 2015. Its adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) for the first quarter was $86.8 million compared to $90.5 million in the first quarter of 2015. However, Advanced Disposal’s net loss in the quarter increased by $3.5 million to $14.3 million.

In a news release accompanying the figures, Advanced says that “while the company's core business operations improved, adjusted EBITDA declined $3.7 million and adjusted EBITDA margins fell 140 basis points to 26 percent. The company faced non-core revenue headwinds related to the sale of landfill gas as well as continued declines in shale activity and single-stream recyclable commodity pricing.”

Costs were adversely impacted by the cycling of a $2 million prior quarter benefit from insurance claim developments, which “can vary on a quarterly basis but overall are representative of the company's continued commitment to safety improvements,” says Advanced Disposal.

“Our team is committed to generating profitable growth and enhancing cash flow over time,” says Advanced Disposal CEO Richard Burke. “While we faced some revenue and cost headwinds during the quarter, our strategy of improving safety and providing an excellent customer experience, coupled with strengthening our core markets through accretive tuck-in acquisitions, pricing discipline, and controlling costs will continue. This strategy will be the platform on which we drive earnings growth and improved returns on invested capital.”