Waste Connections, Inc (WCN) swung to a net loss for the quarter ended Sep. 30, 2016. The company has made a net loss of $257.01 million, or $ 2.08 a share in the quarter, against a net profit of $88.62 million, or $0.50 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $66.52 million, or $0.54 a share compared with $126.46 million or $0.72 a share, a year ago. Revenue during the quarter plunged 49.50 percent to $547.94 million from $1,084.92 million in the previous year period. Gross margin for the quarter expanded 373 basis points over the previous year period to 45.08 percent. Operating margin for the quarter stood at negative 68.47 percent as compared to a positive 14.62 percent for the previous year period.
Operating loss for the quarter was $375.15 million, compared with an operating income of $158.67 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $188.98 million compared with $342.32 million in the prior year period. At the same time, adjusted EBITDA margin improved 294 basis points in the quarter to 34.49 percent from 31.55 percent in the last year period.
"Our results continue to track at or above the increased expectations we communicated in August, and we are extremely pleased that safety, pricing and operational improvements within recently acquired operations continue ahead of schedule," said Ronald J. Mittelstaedt, Chief Executive Officer and Chairman. "Adjusted free cash flow remains notably strong at $205.8 million in the period, which reflects the first full quarter of combined operations since completing the Progressive Waste acquisition, and $440.3 million year-to-date, or 18.9% of revenue."
Operating cash flow declines
Waste Connections, Inc has generated cash of $463.33 million from operating activities during the nine month period, down 14.01 percent or $75.50 million, when compared with the last year period. The company has spent $277 million cash to meet investing activities during the nine month period as against cash outgo of $153.05 million in the last year period. It has incurred net capital expenditure of $166.70 million on net basis during the nine month period, down 17.44 percent or $35.20 million from year ago period.
The company has spent $177.13 million cash to carry out financing activities during the nine month period as against cash outgo of $276.94 million in the last year period.
Cash and cash equivalents stood at $10.97 million as on Sep. 30, 2016, down 90.80 percent or $108.36 million from $119.34 million on Sep. 30, 2015.
Working capital remains negative
Working capital of Waste Connections, Inc was negative $15.85 million on Sep. 30, 2016 compared with negative $53.18 million on Sep. 30, 2015. Current ratio was at 0.96 as on Sep. 30, 2016, up from 0.87 on Sep. 30, 2015.
Days sales outstanding went up to 43 days for the quarter compared with 22 days for the same period last year.
At the same time, days payable outstanding went up to 37 days for the quarter from 19 for the same period last year.
Debt moves up
Waste Connections, Inc has witnessed an increase in total debt over the last one year. It stood at $2,161.61 million as on Sep. 30, 2016, up 10.12 percent or $198.61 million from $1,963 million on Sep. 30, 2015. Total debt was 42.20 percent of total assets as on Sep. 30, 2016, compared with 40.77 percent on Sep. 30, 2015. Debt to equity ratio was at 1.09 as on Sep. 30, 2016, up from 1.01 as on Sep. 30, 2015. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
