Advanced Disposal releases third quarter earnings

Advanced Disposal Services Inc., Ponte Vedra, Florida, announced the results of its third quarter earnings Oct. 29. According to the company, Advanced brought in revenue of $419.5 million in the quarter, up from $400.6 million in the same period of the prior year. Net income during the third quarter was $3.6 million, or $0.04 per diluted share, and adjusted net income, which excludes certain gains and expenses, was $16.9 million, or $0.19 per diluted share.

Third quarter financial highlights include

• Revenue of $419.5 million represented a 4.7 percent increase year over year
• The company saw total organic growth of 4.1 percent, which included average yield of 3.0 percent and volume growth of 1.1 percent
• Year-over-year growth from acquisitions was 1.5 percent
• Net income was $3.6 million, or $0.04 per diluted share
• The company achieved adjusted EBITDA of $116.5 million, which included a $4.8 million year-over-year headwind related to declining recycling prices and higher recycling processing costs
• Cash provided by operating activities was $229.2 million year-to-date
• Adjusted free cash flow year-to-date was $111.0 million

"Our operating philosophy remains focused on safely providing an excellent service experience for our customers, coupled with disciplined pricing to generate strong cash flow for our shareholders," Richard Burke, CEO of Advanced Disposal, says.  "During the third quarter, we were able to achieve 4.7 percent revenue growth led by a 3 percent increase in average yield. Year-to-date, we have also overcome headwinds related to recycling, leachate and interest costs to achieve $229.2 million in cash flow from operations and $111 million in adjusted free cash flow."

In light of the pending acquisition by Waste Management, Advanced Disposal did not host an earnings conference call to elaborate on the company’s third quarter performance.