Page 1

WASTE CONNECTIONS Connect with the Future " NEWS RELEASE Waste Connections Reports Third Quarter 2021 Results And Raises Full Year Outlook 2021-10-27 • Strong execution , accelerating solid waste pricing growth and continued strength in both resource recovery values and acquisition activity again drive outsized results and increased full year outlook • Revenue of $ 1.597 billion , up 14.9 % year over year , exceeding outlook • Reports organic growth of 11.3 % , including 7.3 % solid waste price + volume growth , exceeding outlook • Net income ( a ) of $ 114.4 million , and adjusted EBITDA ( b ) of $ 505.6 million , or 31.7 % of revenue , up sequentially from Q2 and up 60 basis points year over year • Net income and adjusted net income ( b ) of $ 0.44 and $ 0.89 per share , respectively • Year to date net cash provided by operating activities of $ 1.270 billion and adjusted free cash flow ( b ) of $ 825.8 million , or 18.2 % of revenue • Year to date closed acquisitions of approximately $ 240 million in annualized revenues Increases regularly quarterly dividend by 12.2 % • • Provides full year 2021 revenue outlook of approximately $ 6.110 billion , net income of approximately $ 633 million , adjusted EBITDA ( b ) of approximately $ 1.910 billion , net cash from operating activities of approximately $ 1.689 billion and adjusted free cash flow of approximately $ 1.025 billion TORONTO , Oct. 27 , 2021 / PRNewswire / -- Waste Connections , Inc. ( TSX / NYSE : WCN ) ( " Waste Connections " or the " Company " ) today announced its results for the third quarter of 2021 . " We delivered another top to bottom beat in the period on continued strength in solid waste pricing , higher recycled commodity values , and improving E & P waste activity , along with acquisitions closed during the period . More importantly , quality of revenue drove 60 basis points year- over - year adjusted EBITDA ( b ) margin expansion in the quarter , overcoming an estimated 40 basis points impact from margin dilutive acquisitions and hurricanes , putting us firmly on track to exceed the updated full year 2021 outlook we provided in August , " said Worthing F. Jackman , President and Chief Executive Officer . " Strong execution , proactive acceleration of solid waste pricing to address inflationary pressures , and outsized contribution from acquisitions completed in 2021 , already position us for double - digit growth , underlying solid waste margin expansion and strong free cash flow conversion in 2022. Additional acquisitions expected to be completed later this year , and any continuation of trends in E & P waste activity or commodity - driven revenues , would provide incremental benefit . " Mr. Jackman continued , " As anticipated , the strength of our operating performance , free cash flow generation and balance sheet positioned us for another double - digit increase in our quarterly cash dividend , our eleventh straight year , demonstrating once again our ability to fund our differentiated growth strategy and outsized acquisition activity , along with an increasing return of capital to shareholders . " Q3 2021 Results Revenue in the third quarter totaled $ 1.597 billion , up from $ 1.390 billion in the year ago period . Operating income was $ 285.1 million , which included $ 5.6 million in acquisition - related costs , $ 3.1 million of impairments and other operating items , and $ 0.9 million in fair value accounting changes to equity awards . This compares to operating income of $ 230.7 million in the third quarter of 2020 , which included $ 7.9 million of costs primarily resulting from impairments and other operating items and acquisition - related costs . Net income in the third quarter was $ 114.4 million , or $ 0.44 per share on a diluted basis of 261.1 million shares , including a net of tax loss on debt extinguishment associated with the prepayment of senior notes of $ 84.2 million or $ 0.32 per share . In the year ago period , the Company reported net income of $ 158.0 million , or $ 0.60 per share on a diluted basis of 263.5 million shares . Adjusted net income ( b ) in the third quarter was $ 233.1 million , or $ 0.89 per diluted share , versus $ 188.6 million , or $ 0.72 per diluted share , in the prior year period . Adjusted EBITDA ( b ) in the third quarter was $ 505.6 million and 31.7 % of revenue , as compared to $ 432.6 million and 31.1 % of revenue in the prior year period . Adjusted net income , adjusted net income per diluted share and adjusted EBITDA , all non - GAAP measures , 1