Advanced Disposal announces second quarter results

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Ponte Vedra Beach-based Advanced Disposal Services, Inc. (NYSE: ADSW) recently announced that its revenue for the second quarter was $381.1 million, compared to $358.2 million during the same time period last year.

Net loss for the company during the second quarter 2017 was $0.2 million or $0.00 per diluted share, versus net income of $0.2 million or $0.00 per diluted share in second quarter 2016. 

Advanced Disposal's 7 percent revenue growth for second quarter 2017 is its largest quarterly increase in three years. Acquisitions drove nearly half of the increase led by the company's recent purchase of CGS Services, Inc., a vertically-integrated waste collection and disposal company in central and eastern Indiana, along with seven tuck-in acquisitions completed during the first six months of 2017. Organic volume also turned positive during the second quarter at 0.6 percent, driven by growth in disposal revenue. Average price yield was 1.4 percent.

Gains from the company's organic growth and new acquisitions coupled with interest expense savings of $11.1 million year-over-year drove increases in the company's core profitability. Adjusted net income improved $7.1 million in the second quarter of 2017, which does not include a $13 million non-cash impairment charge incurred during the quarter.  Additionally, lower cash interest payments along with working capital improvements and increased profitability drove a $27.1 million increase in cash provided by operating activities during the second quarter, and adjusted free cash flow improved $16.8 million.

For the six-month period prior to June 30, 2017, Advanced Disposal recorded $730.5 million in revenue versus $692.0 million during the same time period last year. Net loss improved $6.8 million to $7.2 million, and adjusted net income increased $11.9 million to $17.5 million.

"Advanced Disposal continues to attain significant year-over-year improvements in cash from operations and adjusted free cash flow as we execute on our strategy," said CEO Richard Burke. "At the same time, we have found profitable opportunities to reinvest in our business along with achieving organic growth that has driven strong-year-over-year revenue gains.”

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