Waste Connections (NYSE: WCN) reported Q2 EPS of $0.65, $0.03 better than the analyst estimate of $0.62. Revenue for the quarter came in at $1.24 billion versus the consensus estimate of $1.23 billion.

• Revenue of $1.240 billion, exceeding outlook
• Net income attributable to Waste Connections of $138.7 million, or $0.52 per share
• Adjusted net income attributable to Waste Connections* of $172.3 million, or $0.65 per share, up 18.2%
• Adjusted EBITDA* of $395.5 million, or 31.9% of revenue
• YTD net cash provided by operating activities of $664.9 million
• YTD adjusted free cash flow* of $472.7 million, or 19.9% of revenue
• Completes previously announced acquisitions, bringing YTD acquired annualized revenue to approximately $175 million

\"Continued strength in solid waste pricing growth, E&P waste activity and acquisition contribution enabled us to exceed our outlook for the period, overcoming increased headwinds from recycling and a weather-delayed ramp in special waste activity across many markets. We are especially pleased with our year-to-date adjusted EBITDA* margin expansion and adjusted free cash flow* generation in spite of these headwinds, as well as our upwardly revised outlook for the full year,\" said Ronald J. Mittelstaedt, Chief Executive Officer and Chairman.

Mr. Mittelstaedt added, "Looking ahead to 2019, we believe we should be well-positioned for above average revenue growth and margin expansion as current favorable trends for solid waste pricing, E&P waste activity and acquisition contribution should continue, while the current recycling headwinds and reported negative volume growth primarily associated with our purposeful shedding of lower quality solid waste revenues, should abate. Our strong financial profile and free cash flow generation provide us the flexibility to not only invest in new growth projects and fund expected continuing above-average acquisition activity, but to also increase our return of capital to shareholders through double-digit percentage increases in our quarterly dividend each October and opportunistic share repurchases."

UPDATED 2018 OUTLOOK

Waste Connections also updated its outlook for 2018, which assumes no change in the current economic environment. The Company\'s outlook excludes any impact from additional acquisitions and divestitures that may close during the year, and expensing of transaction-related items. The outlook provided below is forward looking, and actual results may differ materially depending on risks and uncertainties detailed at the end of this release and in our periodic filings with the U.S. Securities and Exchange Commission and the securities commissions or similar regulatory authorities in Canada. Certain components of the outlook for 2018 are subject to quarterly fluctuations. See reconciliation in the attached tables.

• Revenue is estimated to be approximately $4.880 billion, as compared to our original revenue outlook of approximately $4.825 billion.
• Net income attributable to Waste Connections is estimated to be approximately $559 million, and adjusted EBITDA* is estimated to be approximately $1.555 billion, or about 31.9% of revenue, as compared to our original adjusted EBITDA* outlook of $1.550 billion.
• Net cash provided by operating activities is estimated to be approximately $1.379 billion and adjusted free cash flow* is estimated to be approximately $860 million, or about 17.6% of revenue, as compared to our original adjusted free cash flow* outlook of approximately $850 million.
• Capital expenditures are estimated to be approximately $530 million, as compared to our original capital expenditures outlook of approximately $500 million.

GUIDANCE:

Waste Connections sees FY2018 revenue of $4.88 billion, versus the consensus of $4.9 billion.

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