Waste Connections (WCN) Q2 2022 Earnings Call Transcript

For the period ending June 30, 2023

August 3, 2022 8:30 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Greetings, and welcome to the Waste Connections Second Quarter 2022 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded Wednesday, August 3, 2022.

I would now like to turn the conference over to Worthing Jackman, President and Chief Executive Officer. Please go ahead.

Worthing Jackman

Terrific. Thank you, operator, and good morning. I'd like to welcome everyone to this conference call to discuss our second quarter results and increased outlook for 2022 and to provide a detailed outlook for the third quarter. I am joined this morning by Mary Anne Whitney, our CFO.

As noted in our earnings release, accelerated solid waste pricing and E&P waste activity drove a top to bottom leap in the second quarter. Solid waste pricing growth of 8.8% in Q2 enabled us to overcome increased inflationary pressures during the period and deliver adjusted EBITDA margin in line with our outlook and flat year-over-year, excluding the margin dilutive impact from acquisitions completed since the prior year period.

Our outperformance in the first half of 2022, expected further sequential increases within solid waste pricing growth, continuing strength in E&P waste activity, and acquisitions closed year-to-date, position us to increase our full year outlook for revenue, adjusted EBITDA and adjusted free cash flow and provide another reflection of our culture of accountability in a challenging operating environment.

As anticipated, acquisition activity is pacing well above average. We have signed to close approximately $470 million in annualized revenue so far this year, and our pipeline remains quite robust. As such, we believe we are well positioned for double-digit revenue growth in 2023, along with margin expansion from continuing solid waste pricing strength and rollover contribution from acquisitions already signed or closed year-to-date.

Additional acquisitions expected to close later this year and early next would provide further growth. Before we get into much more detail, let me turn the call over to Mary Anne for our forward-looking disclaimer and other housekeeping items.

Mary Anne Whitney

Thank you, Worthing, and good morning. The discussion during today's call includes forward-looking statements made pursuant to the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995 including forward-looking information within the meaning of applicable Canadian securities laws. Actual results could differ materially from those made in such forward-looking statements due to various risks and uncertainties.