Advanced Disposal Services Inc., Ponte Vedra, Florida, has announced its revenue for Q4 2017. Revenue in Q4 was $384.4 million versus $352 million in the same period of the prior year. Net income during Q4 was $42 million, or 47 cents per diluted share, versus a net loss of $20.1 million, or 24 cents per diluted share in Q4 2016. Excluding certain gains and expenses, adjusted net income in Q4 2017 was $11.2 million and adjusted diluted earnings per share was 13 cents.
"One of our key areas of focus is cash flow generation, and we are pleased that for 2017 Advanced Disposal achieved a 30 percent increase in cash from operations and 40 percent increase in adjusted free cash flow year-over-year," Richard Burke, CEO of Advanced Disposal, says. "We also are seeing strong top-line growth, which should position us well as we move into 2018."
Highlights for Q4 2017 include:
- Achieved Q4 average yield of 1.1 percent and organic volume growth of 2.9 percent led by strong disposal volume.
- Year-over-year growth from acquisitions was 5.5 percent in Q4 because of the first quarter purchase of CGS Services Inc., Morristown, Indiana, and 13 tuck-in acquisitions completed during 2017.
- Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $108.8 million for Q4 up $1.1 million year-over-year despite impacts from healthcare costs and net fuel costs that were a $3.4 million headwind.
- Full year revenue of $1,507.6 million was up 7.3 percent over the prior year.
- Net income for the full year was $38.3 million and adjusted EBITDA grew $7 million to $418.1 million.
- Became a majority independent board of directors and all committees are now comprised of independent directors.
- Received a credit rating upgrade by Standard & Poor's Global (S&P Global).
- Reduced the interest rate on the company's $1.46 billion of term loan B debt by 50 basis points to London Interbank Offered Rate (LIBOR) +225 basis points.
- Full year cash provided by operating activities was $308.8 million, an increase of 30 percent.
- Full year adjusted free cash flow increased 40 percent to $131.8 million.
Advanced Disposal says its forward-looking guidance for 2018 is based on current economic conditions and does not assume any significant changes in the overall economy during 2018. Financial forecasts for 2018 include:
- Revenue is estimated to be between $1,545 million and $1,565 million. This includes average yield of 2.1 percent to 2.8 percent, organic volume of 0.4 percent to 1 percent, acquisition rollover revenue of 1.3 percent and an estimated (1.4 percent) impact from lower revenue from the sale of commodities and the adoption of the new revenue recognition standard.
- Adjusted EBITDA is estimated to be between $426 million and $436 million.
- Capital expenditures are estimated to be between $184 million and $194 million.
- Adjusted free cash flow is estimated to be between $134 million and $144 million.