Revenue during the quarter grew 5.79 percent to $457 million from $432 million in the previous year period. Gross margin for the quarter expanded 442 basis points over the previous year period to 39.61 percent. Total expenses were 87.31 percent of quarterly revenues, down from 90.05 percent for the same period last year. This has led to an improvement of 274 basis points in operating margin to 12.69 percent.

Operating income for the quarter was $58 million, compared with $43 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $128 million compared with $127 million in the prior year period. At the same time, adjusted EBITDA margin contracted 139 basis points in the quarter to 28.01 percent from 29.40 percent in the last year period.

"I am very pleased with our performance in the fourth quarter, which led to solid full year results," said Stephen J. Jones, Covanta's President and chief executive officer. "Record profiled waste and strong markets helped drive our performance on the waste revenue line, and the team continues to execute on our other organic growth initiatives, including metal recovery, which also hit a record in 2016, and Continuous Improvement. While we expect modest Adjusted EBITDA growth in 2017, the significant progress on the construction of our Dublin facility, which is scheduled for commercial operations by the start of the fourth quarter, coupled with the benefits from our ongoing organic growth initiatives, position us for stronger results and more meaningful Free Cash Flow growth in 2018 and beyond."

The company has spent $254 million cash to meet investing activities during the year as against cash outgo of $448 million in the last year.

The company has spent $40 million cash to carry out financing activities during the year as against cash inflow of $208 million in the last year period.

Cash and cash equivalents stood at $84 million as on Dec. 31, 2016, down 10.64 percent or $10 million from $94 million on Dec. 31, 2015.

Debt moves up
Covanta Holding Corporation has witnessed an increase in total debt over the last one year. It stood at $2,635 million as on Dec. 31, 2016, up 7.07 percent or $174 million from $2,461 million on Dec. 31, 2015. Total debt was 61.51 percent of total assets as on Dec. 31, 2016, compared with 57.78 percent on Dec. 31, 2015. Debt to equity ratio was at 5.58 as on Dec. 31, 2016, up from 3.85 as on Dec. 31, 2015. Interest coverage ratio improved to 1.66 for the quarter from 1.34 for the same period last year.