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EX - 99.1 2 wcn - 20210428xex99d1.htm EX - 99.1 N WASTE CONNECTIONS Connect with the Future WASTE CONNECTIONS REPORTS FIRST QUARTER 2021 RESULTS Strong solid waste pricing growth , accelerating solid waste volumes and increased resource recovery values drive better than expected Q1 results , an expected 10 % solid waste price plus volume growth in Q2 , and improving outlook for 2021 Revenue of $ 1.396 billion , exceeding outlook Net income ( a ) of $ 160.3 million , and adjusted EBITDA ) of $ 433.2 million , or 31.0 % of revenue , exceeding outlook and up 80 basis points year over year Net income and adjusted net income ( b ) of $ 0.61 and $ 0.70 per share , respectively Net cash provided by operating activities of $ 400.4 million and adjusted free cash flow ( b ) of $ 289.8 million , or 20.8 % of revenue and up 22.9 % year over year TORONTO , ONTARIO , April 28 , 2021 - Waste Connections , Inc. ( TSX / NYSE : WCN ) ( " Waste Connections " or the " Company " ) today announced its results for the first quarter of 2021 . " We are extremely pleased by the increasing momentum throughout the first quarter , with high flow through from returning solid waste volumes and increased resource recovery values setting up for outsized performance in 2021 . These tailwinds , bolstered by strong solid waste pricing retention , drove adjusted EBITDA ( ¹ ) margin 70 basis points higher than expected in the period . Adjusted EBITDA ( b ) margin in Q1 was 31.0 % , up 80 basis points year over year , driven primarily by an estimated 110 basis points margin expansion in underlying solid waste collection , transfer and disposal , with another 100 basis points from higher recovered commodity values . Adjusted free cash flow ( b ) was $ 289.8 million , or 20.8 % of revenue in the period , positioning us to comfortably exceed our minimum outlook of $ 950 million for the full year , " said Worthing F. Jackman , President and Chief Executive Officer . " Solid waste activity further accelerated as we exited the first quarter , positioning us for an expected double - digit solid waste price plus volume growth in the second quarter . " Mr. Jackman added , " We knew that our differentiated response to the COVID - 19 pandemic would leave us well positioned as local economies reopened , and we are encouraged by improving macro trends and our strong operating and financial performance as we anniversary the onset of the pandemic . COVID - 19 - related impacts to our business continue to abate , but most importantly , our commitment to and support of our employees and their families are unwavering . " Mr. Jackman continued , " We are also encouraged by the cadence of acquisition dialogue and the high quality of potential opportunities , both of which suggest the potential for another outsized year of such activity , for which we are well - positioned . Our balance sheet strength also provides the flexibility for further increasing return of capital to shareholders . " Financial Impact from COVID - 19 March 11 , 2021 marked the one year anniversary of COVID - 19 being declared a global pandemic by the World Health Organization . The related economic disruptions largely associated with closures or restrictions put into effect following the onset of the COVID - 19 pandemic resulted in declines in solid waste commercial collection , transfer station and landfill volumes , and roll off activity . Throughout the remaining fiscal year 2020 , solid waste revenue and reported volumes largely reflected the pace and shape of the closures and subsequent reopening activity , with the timing and magnitude of recovery varying by market . Reported solid waste volumes in 2020 turned slightly negative in Q1 , were most negative in Q2 , and showed sequential improvement during the second half of the year , finishing the year at negative 3.1 % in Q4 . In Q1 2021 , the final period to include comparisons to pre - COVID - 19 activity levels on a year over year basis , solid waste volumes were down 3.2 % , reflecting the strong start to 2020 prior to the onset