Advanced Disposal Services (ADSW) Reports In-Line Q3 EPS, Beats on Revenues; FY17 Revenue Guidance Above Consensus

Advanced Disposal Services (NYSE: ADSW) reported Q3 EPS of $0.16, in-line with the analyst estimate of $0.16. Revenue for the quarter came in at $392.7 million versus the consensus estimate of $383.11 million.

Third Quarter Financial Highlights

• Revenue of $392.7 million was up 8.9% over the prior year
• Achieved combined organic price and volume growth of 3.6% led by strong disposal volume
• Year-over-year growth from acquisitions was 4.8% due to the first quarter purchase of CGS Services, Inc. and twelve tuck-in acquisitions completed during the first nine months of 2017
• Net income was $3.5 million or $0.04 per diluted share
• Adjusted EBITDA of $112.3 million up $3.2 million year-over-year despite impact from storm, start-up, and other unforeseen costs of $3.7 million
• Adjusted net income was $13.9 million and adjusted diluted earnings per share was $0.16
• Year-to-date cash provided by operating activities was $247.4 million, an increase of 29%
• Year-to-date adjusted free cash flow increased 23% to $111.6 million

Fiscal Year 2017 Guidance

The Company expects to continue to achieve strong revenue for the remainder of the year but will also be negatively impacted by a significant decrease in commodity prices and storm-related costs that carryover into the fourth quarter. Based on these factors, Advanced Disposal is making the following updates to its guidance:

• Raising its full year 2017 revenue guidance to between $1,490 million to $1,505 million from its previous guidance of between $1,475 million to $1,490 million
• Narrowing its adjusted free cash flow guidance to $121 million to $131 million
• Revising downward full year adjusted EBITDA guidance to between $416 million and $419 million compared to the previous guidance of $423 million to $433 million

GUIDANCE:

Advanced Disposal Services sees FY2017 revenue of $1.49-1.505 billion, versus the consensus of $1.49 billion.

For earnings history and earnings-related data on Advanced Disposal Services (ADSW) click here.

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