Waste Connections reports better fourth quarter results

Waste Connections, Inc. announced its results for the fourth quarter of 2010. Revenue totaled $336.0 million, an 8.4 percent increase over revenue of $309.9 million in the year ago period. Operating income was $67.7 million, or 20.2 percent of revenue, versus $58.9 million in the fourth quarter of 2009. Net income attributable to Waste Connections in the quarter was $36.1 million, or $0.31 per share on a diluted basis of 115.3 million shares. Shares and per share numbers reflect a three-for-two stock split effective November 12, 2010.

Adjusted net income attributable to Waste Connections in the quarter was $36.7 million, or $0.32 per share, adjusting for acquisition-related costs expensed due to the implementation of accounting guidance for business combinations effective January 1, 2009.

“Increasing disposal volumes, record recycled commodity values, strong core pricing, and a stable cost structure drove results above expectations throughout 2010. Adjusted operating income before depreciation and amortization as a percentage of revenue expanded more than 100 basis points in 2010 over the prior year, and adjusted EPS increased 26.5 percent. We generated record free cash flow during the year, remained disciplined in our acquisition strategy, and returned approximately 6 percent of market cap to shareholders,” said Ronald J. Mittelstaedt, chairman and chief executive officer.

For the year ended December 31, 2010, revenue was $1.32 billion, a 10.8 percent increase over revenue of $1.19 billion in the year ago period. Operating income was $272.4 million, versus $230.7 million for the same period in 2009.

Net income attributable to Waste Connections for the year ended December 31, 2010, was $135.1 million, or $1.16 per share on a diluted basis of 116.9 million shares.