WASTE CONNECTIONS REPORTS FIRST QUARTER 2025 RESULTS

Better than expected financial results from price-led organic solid waste growth and continued acquisition activity provide strong start to 2025 Revenue of $2.228 billion, above outlook and up 7.5% year over year Net income(a) of $241.5 million and adjusted EBITDA(b) of $712.2 million, above outlook and up 9.5% year over year Adjusted EBITDA(b) margin of 32.0%, above outlook and up 60 basis points year over year Net income and adjusted net income(b) of $0.93 and $1.13 per share, respectively Net cash provided by operating activities of $541.5 million and adjusted free cash flow(b) of $332.1 million Year-to-date acquired annualized revenue of over $125 million , /PRNewswire/ -- Waste Connections, Inc. (TSX/NYSE: WCN) ("Waste Connections" or the "Company") today announced its results for the first quarter of 2025. Waste Connections logo. (PRNewsFoto/Waste Connections, Inc.) (PRNewsFoto/WASTE CONNECTIONS_ INC_) "We're extremely pleased by the strong start to 2025 as price-led organic solid waste growth and continued acquisition activity drove a top-to-bottom beat in the quarter, positioning us well for the full year. Exemplary operational execution supported core solid waste pricing of 6.9% and drove better than expected results as we overcame incremental volume weakness from protracted weather events across many markets to exceed our outlook and deliver adjusted EBITDA(b) margin of 32.0%," said Ronald J. Mittelstaedt, President and Chief Executive Officer. "Our industry-leading results are indicative of the durability of our unique approach to market selection, our decentralized operating model and the resulting projectability from our commitment to excellence," continued Mr. Mittelstaedt. "To that end, we also saw continued improvement in employee retention for the tenth consecutive quarter along with record safety performance during the period." Mr. Mittelstaedt added, "We achieved all of these accomplishments while also continuing acquisition activity at outsized levels, with annualized revenues closed to date already over $125 million, including a state-of-the-art recycling facility in New Jersey to complement our growth in the Northeast. The strength of our financial position and free cash flow generation provides optionality for continued above-average acquisition activity during 2025, along with increasing return of capital to shareholders."Q1 2025 ResultsRevenue in the first quarter totaled $2.228 billion, up from $2.073 billion in the year ago period. Operating income was $390.2 million, which included $20.2 million primarily in transaction-related expenses, impairments and other operating items and fair value accounting changes associated with certain equity awards. This compares to operating income of $366.8 million in the first quarter of 2024, which included $11.5 million primarily related to transaction-related expenses and fair value accounting changes associated with certain equity awards. Net income in the first quarter was $241.5 million, or $0.93 per share on a diluted basis of 258.9 million shares. In the year ago period, the Company reported net income of $230.1 million, or $0.89 per share on a diluted basis of 258.5 million shares. Adjusted net income(b) in the first quarter was $293.1 million, or $1.13 per diluted share, up from $268.7 million, or $1.04 per diluted share, in the prior year period. Adjusted EBITDA(b) in the first quarter was $712.2 million, as compared to $650.7 million in the prior year period. Adjusted net income, adjusted net income per diluted share and adjusted EBITDA, all non-GAAP measures, primarily exclude impairments and transaction-related items, as reflected in the detailed reconciliations in the attached tables.Q1 2025 Earnings Conference CallWaste Connections will be hosting a conference call related to first quarter earnings on April 24th at 8:30 A.M. Eastern Time. A live audio webcast of the conference call can be accessed by visiting investors.wasteconnections.com and selecting "News & Events" from the website menu. Alternatively, conference call participants can preregister by clicking here. Registered participants will receive dial-in instructions and a personalized code for entry to the conference call. A replay of the conference call will be available until May 1, 2025, by calling 877-344-7529 (within North America) or 412-317-0088 (international) and entering Passcode #6755173. Waste Connections will be filing a Form 8-K on EDGAR and on SEDAR (as an "Other" document) prior to markets opening on April 24th, providing the Company's second quarter 2025 outlook for revenue and adjusted EBITDA(b).About Waste Connections Waste Connections (wasteconnections.com) is an integrated solid waste services company that provides non-hazardous waste collection, transfer and disposal services, including by rail, along with resource recovery primarily through recycling and renewable fuels generation. The Company serves approximately nine million residential, commercial and industrial customers in mostly exclusive and secondary markets across 46 states in the U.S. and six provinces in Canada. Waste Connections also provides non-hazardous oilfield waste treatment, recovery and disposal services in several basins across the U.S. and Canada, as well as intermodal services for the movement of cargo and solid waste containers in the Pacific Northwest. Waste Connections views its Environmental, Social and Governance ("ESG") efforts as integral to its business, with initiatives consistent with its objective of long-term value creation and focused on reducing emissions, increasing resource recovery of both recyclable commodities and clean energy fuels, reducing reliance on off-site disposal for landfill leachate, further improving safety and enhancing employee engagement. Visit wasteconnections.com/sustainability for more information and updates on our progress towards targeted achievement.Safe Harbor and Forward-Looking InformationThis press release contains forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995 ("PSLRA"), including "forward-looking information" within the meaning of applicable Canadian securities laws. These forward-looking statements are neither historical facts nor assurances of future performance and reflect Waste Connections' current beliefs and expectations regarding future events and operating performance. These forward-looking statements are often identified by the words "may," "might," "believes," "thinks," "expects," "estimate," "continue," "intends" or other words of similar meaning. All of the forward-looking statements included in this press release are made pursuant to the safe harbor provisions of the PSLRA and applicable securities laws in Canada. Forward-looking statements involve risks and uncertainties. Forward-looking statements in this press release include, but are not limited to, statements about expected 2025 financial results, outlook and related assumptions, and potential acquisition activity. Important factors that could cause actual results to differ, possibly materially, from those indicated by the forward-looking statements include, but are not limited to, risk factors detailed from time to time in the Company's filings with the SEC and the securities commissions or similar regulatory authorities in Canada. You should not place undue reliance on forward-looking statements, which speak only as of the date of this press release. Waste Connections undertakes no obligation to update the forward-looking statements set forth in this press release, whether as a result of new information, future events, or otherwise, unless required by applicable securities laws.– financial tables attached – ---------------------------------------------------------------------------------------------------------------------------------------------------- (a) All references to "Net income" refer to the financial statement line item "Net income attributable to Waste Connections". (b) A non-GAAP measure; see accompanying Non-GAAP Reconciliation Schedule. WASTE CONNECTIONS, INC.CONDENSED CONSOLIDATED STATEMENTS OF NET INCOMETHREE MONTHS ENDED MARCH 31, 2024 AND 2025(Unaudited)(in thousands of U.S. dollars, except share and per share amounts) Three months endedMarch 31, 2024 2025 Revenues $ 2,072,653 $ 2,228,176 Operating expenses: Cost of operations 1,221,783 1,291,443 Selling, general and administrative 220,735 250,134 Depreciation 222,691 242,307 Amortization of intangibles 40,290 47,642 Impairments and other operating items 354 6,440 Operating income 366,800 390,210 Interest expense (78,488) (80,875) Interest income 2,051 1,770 Other income (expense), net (1,823) 1,872 Income before income tax provision 288,540 312,977 Income tax provision (59,413) (71,467) Net income 229,127 241,510 Plus: Net loss attributable to noncontrolling interests 927 - Net income attributable to Waste Connections $ 230,054 $ 241,510 Earnings per common share attributable to Waste Connections'common shareholders: Basic $ 0.89 $ 0.94 Diluted $ 0.89 $ 0.93 Shares used in the per share calculations: Basic 257,801,116 258,193,975 Diluted 258,482,473 258,904,806 Cash dividends per common share $ 0.285 $ 0.315 WASTE CONNECTIONS, INC.CONDENSED CONSOLIDATED BALANCE SHEETS(Unaudited)(in thousands of U.S. dollars, except share and per share amounts) December 31,2024 March 31,2025 ASSETS Current assets: Cash and equivalents $ 62,366 $ 111,226 Accounts receivable, net of allowance for credit losses of $25,730 and $25,280 atDecember 31, 2024 and March 31, 2025, respectively 935,027 952,010 Prepaid expenses and other current assets 229,519 217,802 Total current assets 1,226,912 1,281,038 Restricted cash 135,807 138,220 Restricted investments 78,126 74,160 Property and equipment, net 8,035,929 8,222,980 Operating lease right-of-use assets 308,198 311,563 Goodwill 7,950,406 8,055,979 Intangible assets, net 1,991,619 2,067,264 Other assets, net 90,812 103,293 Total assets $ 19,817,809 $ 20,254,497 LIABILITIES AND EQUITY Current liabilities: Accounts payable $ 637,371 $ 625,582 Book overdraft 14,628 14,518 Deferred revenue 382,501 404,382 Accrued liabilities 736,824 690,222 Current portion of operating lease liabilities 40,490 39,857 Current portion of contingent consideration 59,169 47,261 Current portion of long-term debt and notes payable 7,851 7,657 Total current liabilities 1,878,834 1,829,479 Long-term portion of debt and notes payable 8,072,928 8,388,364 Long-term portion of operating lease liabilities 272,107 266,675 Long-term portion of contingent consideration 27,993 28,001 Deferred income taxes 958,340 1,011,613 Other long-term liabilities 747,253 716,185 Total liabilities 11,957,455 12,240,317 Commitments and contingencies Equity: Common shares: 258,067,487 shares issued and 258,019,389 shares outstanding at December 31, 2024; 258,364,361 shares issued and 258,318,013 shares outstanding at March 31, 2025 3,283,161 3,286,078 Additional paid-in capital 325,928 318,350 Accumulated other comprehensive loss (205,740) (207,286) Treasury shares: 48,098 and 46,348 shares at December 31, 2024 and March 31, 2025, respectively - - Retained earnings 4,457,005 4,617,038 Total Waste Connections' equity 7,860,354 8,014,180 Noncontrolling interest in subsidiaries - - Total equity 7,860,354 8,014,180 Total liabilities and equity $ 19,817,809 $ 20,254,497 WASTE CONNECTIONS, INC.CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWSTHREE MONTHS ENDED MARCH 31, 2024 AND 2025(Unaudited)(in thousands of U.S. dollars) Three months ended March 31, 2024 2025 Cash flows from operating activities: Net income $ 229,127 $ 241,510 Adjustments to reconcile net income to net cash provided by operating activities: Loss from disposal of assets, impairments and other 1,649 7,778 Depreciation 222,691 242,307 Amortization of intangibles 40,290 47,642 Deferred income taxes, net of acquisitions 30,395 36,165 Current period provision for expected credit losses 3,730 2,470 Amortization of debt issuance costs 4,055 2,034 Share-based compensation 21,952 23,438 Interest accretion 11,279 12,737 Adjustments to contingent consideration - (1,500) Other 902 (1,013) Net change in operating assets and liabilities, net of acquisitions (75,761) (72,029) Net cash provided by operating activities 490,309 541,539 Cash flows from investing activities: Payments for acquisitions, net of cash acquired (1,156,422) (380,417) Capital expenditures for property and equipment (169,951) (212,455) Proceeds from disposal of assets 1,085 969 Other (9,291) (11,308) Net cash used in investing activities (1,334,579) (603,211) Cash flows from financing activities: Proceeds from long-term debt 2,353,022 782,904 Principal payments on notes payable and long-term debt (1,350,932) (541,737) Payment of contingent consideration recorded at acquisition date (11,295) (20,137) Change in book overdraft (271) (110) Payments for cash dividends (73,573) (81,477) Tax withholdings related to net share settlements of equity-based compensation (30,850) (28,981) Debt issuance costs (10,093) - Proceeds from issuance of shares under employee share purchase plan 2,183 2,593 Proceeds from sale of common shares held in trust 286 324 Net cash provided by financing activities 878,477 113,379 Effect of exchange rate changes on cash, cash equivalents and restricted cash (577) (434) Net increase in cash, cash equivalents and restricted cash 33,630 51,273 Cash, cash equivalents and restricted cash at beginning of period 184,038 198,173 Cash, cash equivalents and restricted cash at end of period $ 217,668 $ 249,446 ADDITIONAL STATISTICS(in thousands of U.S. dollars, except where noted)Solid Waste Internal Growth: The following table reflects a breakdown of the components of our solid waste internal growth for the three months ended March 31, 2025: Three months ended March 31, 2025 Core Price 6.9 % Surcharges (0.2 %) Volume(a) (2.8 %) Recycling (0.1 %) Foreign Exchange Impact (0.7 %) Closed Operation (0.9 %) Total 2.2 % ----------------------------------------------------------------------------- (a) Volumes adjusted for one less workday during the period. Revenue Breakdown: The following table reflects a breakdown of our revenue for the three-month periods ended March 31, 2024 and 2025: Three months ended March 31, 2024 Revenue Inter-companyElimination ReportedRevenue % Solid Waste Collection $ 1,515,060 $ (4,003) $ 1,511,057 72.9 % Solid Waste Disposal and Transfer 655,360 (282,978) 372,382 17.9 % Solid Waste Recycling 49,025 (1,839) 47,186 2.3 % E&P Waste Treatment, Recovery and Disposal 97,408 (4,543) 92,865 4.5 % Intermodal and Other 49,541 (378) 49,163 2.4 % Total $ 2,366,394 $ (293,741) $ 2,072,653 100.0 % Three months ended March 31, 2025 Revenue Inter-companyElimination ReportedRevenue % Solid Waste Collection $ 1,621,077 $ (4,536) $ 1,616,541 72.5 % Solid Waste Disposal and Transfer 658,023 (296,282) 361,741 16.2 % Solid Waste Recycling 61,341 (2,084) 59,257 2.7 % E&P Waste Treatment, Recovery and Disposal 150,899 (6,374) 144,525 6.5 % Intermodal and Other 46,549 (437) 46,112 2.1 % Total $ 2,537,889 $ (309,713) $ 2,228,176 100.0 % Contribution from Acquisitions: The following table reflects revenues from acquisitions, net of divestitures, for the three- month periods ended March 31, 2024 and 2025: Three months endedMarch 31, 2024 2025 Acquisitions, net $ 77,988 $ 129,298 ADDITIONAL STATISTICS (continued)(in thousands of U.S. dollars, except where noted)Other Cash Flow Items: The following table reflects cash interest and cash taxes for the three-month periods ended March 31, 2024 and 2025: Three months endedMarch 31, 2024 2025 Cash Interest Paid $ 66,384 $ 84,154 Cash Taxes Paid 28,406 22,176 Debt to Book Capitalization at March 31, 2025: 51%Internalization for the three months ended March 31, 2025: 59%Days Sales Outstanding for the three months ended March 31, 2025: 38 (22 net of deferred revenue)Share Information for the three months ended March 31, 2025: Basic shares outstanding 258,193,975 Dilutive effect of equity-based awards 710,831 Diluted shares outstanding 258,904,806 NON-GAAP RECONCILIATION SCHEDULE(in thousands of U.S. dollars, except where noted)Reconciliation of Adjusted EBITDA:Adjusted EBITDA, a non-GAAP financial measure, is provided supplementally because it is widely used by investors as a performance and valuation measure in the solid waste industry. Management uses adjusted EBITDA as one of the principal measures to evaluate and monitor the ongoing financial performance of Waste Connections' operations. Waste Connections defines adjusted EBITDA as net income attributable to Waste Connections, plus or minus net income (loss) attributable to noncontrolling interests, plus income tax provision, plus interest expense, less interest income, plus depreciation and amortization expense, plus closure and post-closure accretion expense, plus or minus any loss or gain on impairments and other operating items, plus other expense, less other income. Waste Connections further adjusts this calculation to exclude the effects of other items management believes impact the ability to assess the operating performance of its business. This measure is not a substitute for, and should be used in conjunction with, GAAP financial measures. Other companies may calculate adjusted EBITDA differently. Three months endedMarch 31, 2024 2025 Net income attributable to Waste Connections $ 230,054 $ 241,510 Less: Net loss attributable to noncontrolling interests (927) - Plus: Income tax provision 59,413 71,467 Plus: Interest expense 78,488 80,875 Less: Interest income (2,051) (1,770) Plus: Depreciation and amortization 262,981 289,949 Plus: Closure and post-closure accretion 9,405 11,874 Plus: Impairments and other operating items 354 6,440 Plus/(Less): Other expense (income), net 1,823 (1,872) Adjustments: Plus: Transaction-related expenses(a) 9,847 11,970 Plus: Fair value changes to equity awards(b) 1,286 1,770 Adjusted EBITDA $ 650,673 $ 712,213 As % of revenues 31.4 % 32.0 % ____________________________ (a) Reflects the addback of acquisition-related transaction costs. (b) Reflects fair value accounting changes associated with certain equity awards. NON-GAAP RECONCILIATION SCHEDULE (continued)(in thousands of U.S. dollars, except where noted)Reconciliation of Adjusted Free Cash Flow: Adjusted free cash flow, a non-GAAP financial measure, is provided supplementally because it is widely used by investors as a liquidity measure in the solid waste industry. Waste Connections calculates adjusted free cash flow as net cash provided by operating activities, plus or minus change in book overdraft, plus proceeds from disposal of assets, less capital expenditures for property and equipment. Waste Connections further adjusts this calculation to exclude the effects of items management believes impact the ability to evaluate the liquidity of its business operations. This measure is not a substitute for, and should be used in conjunction with, GAAP liquidity or financial measures. Other companies may calculate adjusted free cash flow differently. Three months endedMarch 31, 2024 2025 Net cash provided by operating activities $ 490,309 $ 541,539 Less: Change in book overdraft (271) (110) Plus: Proceeds from disposal of assets 1,085 969 Less: Capital expenditures for property and equipment (169,951) (212,455) Adjustments: Transaction-related expenses(a) 4,976 2,392 Pre-existing Progressive Waste share-based grants(b) 14 16 Executive separation costs(c) - 449 Tax effect(d) (1,369) (725) Adjusted free cash flow $ 324,793 $ 332,075 As % of revenues 15.7 % 14.9 % ___________________________ (a) Reflects the addback of acquisition-related transaction costs. (b) Reflects the cash settlement of pre-existing Progressive Waste share-based awards during the period. (c) Reflects the cash component of severance expense associated with an executive departure from 2023. (d) The aggregate tax effect of footnotes (a) through (c) is calculated based on the applied tax rates for the respective periods. NON-GAAP RECONCILIATION SCHEDULE (continued)(in thousands of U.S. dollars, except per share amounts)Reconciliation of Adjusted Net Income attributable to Waste Connections and Adjusted Net Income per Diluted Share attributable to Waste Connections:Adjusted net income attributable to Waste Connections and adjusted net income per diluted share attributable to Waste Connections, both non-GAAP financial measures, are provided supplementally because they are widely used by investors as valuation measures in the solid waste industry. Management uses adjusted net income attributable to Waste Connections and adjusted net income per diluted share attributable to Waste Connections as one of the principal measures to evaluate and monitor the ongoing financial performance of Waste Connections' operations. Waste Connections provides adjusted net income attributable to Waste Connections to exclude the effects of items management believes impact the comparability of operating results between periods. Adjusted net income attributable to Waste Connections has limitations due to the fact that it excludes items that have an impact on the Company's financial condition and results of operations. Adjusted net income attributable to Waste Connections and adjusted net income per diluted share attributable to Waste Connections are not a substitute for, and should be used in conjunction with, GAAP financial measures. Other companies may calculate these non-GAAP financial measures differently. Three months endedMarch 31, 2024 2025 Reported net income attributable to Waste Connections $ 230,054 $ 241,510 Adjustments: Amortization of intangibles(a) 40,290 47,642 Impairments and other operating items(b) 354 6,440 Transaction-related expenses(c) 9,847 11,970 Fair value changes to equity awards(d) 1,286 1,770 Tax effect(e) (13,162) (16,212) Adjusted net income attributable to Waste Connections $ 268,669 $ 293,120 Diluted earnings per common share attributable to Waste Connections' common shareholders: Reported net income $ 0.89 $ 0.93 Adjusted net income $ 1.04 $ 1.13 ____________________________ (a) Reflects the elimination of the non-cash amortization of acquisition-related intangible assets. (b) Reflects the addback of impairments and other operating items. (c) Reflects the addback of acquisition-related transaction costs. (d) Reflects fair value accounting changes associated with certain equity awards. (e) The aggregate tax effect of the adjustments in footnotes (a) through (d) is calculated based on the applied tax rates for the respective periods. SOURCE Waste Connections, Inc. WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

WASTE CONNECTIONS REPORTS FIRST QUARTER 2025 RESULTS

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