Waste Connections reports third quarter earnings improvement

Waste Connections, Inc. announced its results for the third quarter of 2010. Revenue totaled $345.8 million, a 9.4 percent increase over revenue of $316.0 million in the year ago period. Operating income was $75.7 million, or 21.9 percent of revenue, versus $64.8 million in the third quarter of 2009. Net income attributable to Waste Connections in the quarter was $41.0 million, or $0.53 per share on a diluted basis of 77.9 million shares. The effective tax rate in the quarter was 39.2 percent compared to 36.0 percent in the year ago period.

Adjusted net income attributable to Waste Connections in the quarter was $41.4 million, or $0.53 per share, adjusting primarily for acquisition-related costs expensed due to the implementation of new accounting guidance for business combinations effective January 1, 2009.

For the nine months ended September 30, 2010, revenue was $983.8 million, an 11.6 percent increase over revenue of $881.5 million in the year ago period. Operating income was $204.6 million, versus $171.8 million for the same period in 2009. Net income attributable to Waste Connections for the nine months ended September 30, 2010, was $99.0 million, or $1.26 per share on a diluted basis of 78.3 million shares.

For the nine months ended September 30, 2010, non-cash costs for equity-based compensation, amortization of acquisition-related intangibles, loss on the early redemption of the 2026 Notes (net of make-whole payment), and amortization of debt discount related to convertible debt instruments in connection with the adoption of new accounting guidance on January 1, 2009, were $22.8 million ($14.1 million net of taxes, or approximately $0.18 per share), compared to $19.8 million ($12.3 million net of taxes, or approximately $0.15 per share) in the year ago period.