Waste Connections shows jump in profits for first quarter

Waste Connections, Inc. announced its results for the first quarter of 2010. Revenue totaled $307.5 million, a 17.1 percent increase over revenue of $262.7 million in the year ago period.

Operating income was $59.6 million, or 19.4 percent of revenue, versus $47.6 million in the first quarter of 2009. Net income attributable to Waste Connections in the quarter was $27.6 million, or $0.35 per share on a diluted basis of 78.7 million shares.

Net income attributable to Waste Connections in the quarter includes an approximate $1.5 million, or $0.02 per share, increase in the income tax provision associated with an adjustment in deferred tax liabilities primarily resulting from a voter-approved increase in Oregon state income tax rates in the period. Results in the prior year period included approximately $3.0 million ($1.8 million net of taxes, or approximately $0.02 per share) primarily related to acquisition-related costs expensed due to the implementation of new accounting guidance for business combinations effective January 1, 2009, and a loss on the Company’s prior corporate office lease due to the relocation of the Company’s corporate offices.

Non-cash costs for equity-based compensation, amortization of acquisition-related intangibles, and amortization of debt discount related to convertible debt instruments in connection with the adoption of new accounting guidance on January 1, 2009, were $7.8 million ($4.8 million net of taxes, or approximately $0.06 per share) in the quarter compared to $5.8 million ($3.5 million net of taxes, or approximately $0.04 per share) in the year ago period.