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Imperial Capital Global Opportunities Conference September 18, 2014

Imperial Capital Global Opportunities Conference September 18, 2014. SAFE HARBORS STATEMENT. WCN: INVESTMENT HIGHLIGHTS. Third largest solid waste and leading oilfield waste company in the U.S. $5 billion in assets and 7,000 employees Differentiated strategy

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Imperial Capital Global Opportunities Conference September 18, 2014

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  1. Imperial Capital Global Opportunities Conference September 18, 2014

  2. SAFE HARBORS STATEMENT

  3. WCN: INVESTMENT HIGHLIGHTS • Third largest solid waste and leading oilfield waste company in the U.S. • $5 billion in assets and 7,000 employees • Differentiated strategy • Only company focused on secondary and exclusive markets • Expanding presence in niche segments such as E&P waste • Solid waste predictability + oilfield waste growth potential • Differentiated results • Sector-leading EBITDA, EBIT and free cash flow margins • Sector-leading conversion of EBITDA to free cash flow • Well positioned for additional strategic opportunities • Investment grade rated => tremendous access to low cost growth capital • Proven management team creating substantial stockholder value

  4. WCN: FINANCIAL HIGHLIGHTS

  5. SOLID WASTE: A DIFFERENTIATED STRATEGY

  6. SOLID WASTE: 85% OF REVENUE Almost 3 million customers across 30 states

  7. SOLID WASTE INDUSTRY TENETS • $55 billion revenue => still consolidating • ~50% publicly traded companies / remainder private and municipalities • ~40% concentrated in two largest companies • Solid waste is a commodity business • Lowest price provider wins • Basic level of service expectation by customers • Scale matters locally • Market share = route density • Success is driven by: • Market selection • Asset and contractual positioning • Execution at the local level

  8. OUR DIFFERENTIATED STRATEGY • Exclusive markets • Vertically integrated, or • Non-integrated • Competitive markets • Secondary markets with • High market share and • Vertically integrated or disposal neutral • What we wish to avoid: • Urban markets • #3 or worse position in a market • Collection-only position in a competitive market with competitor-controlled disposal

  9. TARGETING ATTRACTIVE MARKETS 90% of WCN Solid Waste Note: Rankings reflect relative attractiveness to WCN

  10. STRATEGIC IMPLICATIONS • Consistent pricing • Lower customer churn rates • Comparably better core price + volume growth • Higher margins and free cash generation • Greater visibility and predictability • Attractive returns on invested capital • Our success: not dependent on behavior or execution of other national players • Our strategy: resilient in a weak economy; levered to improving economy

  11. E&P WASTE: MARKET LEADER IN TREATMENT, DISPOSAL & RECOVERY

  12. E&P WASTE: 15% OF REVENUE Strong asset positioning across diverse oil-rich basins

  13. E&P WASTE HIGHLIGHTS • Market leader in higher growth oilfield waste treatment, recovery and disposal industry • Diversity across multiple oil-rich basins, including Permian, Bakken & Eagle Ford • Strong asset positions within targeted basins => almost 40 facilities • Pursuing permits for several greenfield development opportunities • Solids disposal-oriented business => strong cash flows • Major sector growth drivers: • Increased drilling in unconventional areas => higher waste intensity per well • Heightened customer awareness of waste stream management • Potential increasing environmental regulations and enforcement

  14. 1H 2014 HIGHLIGHTS • Revenue: $1.0 billion, up 7.1% YoY • Solid Waste Price + Volume Growth of 4.8% • 2.8% Price • 2.0% Volume => MSW landfill tons up 7% • E&P Revenues above expectations – up almost 23% YoY • Q2 revenues up almost 26% YoY and up 15% sequentially from Q1 • All basins up year over year • Adjusted EBITDA: $346.6 million, or 34.4% of revenue, up 9.9% YoY • Up 80 bps YoY on higher E&P activity • Adjusted free cash flow: $208.6 million, or 20.7% of revenue, up 18.8% YoY • Paid down over $135 million of debt and reduced leverage to 2.75x • Announced acquisition of two development stage landfills in Q1’14 • Expect both facilities to open before year-end

  15. Q3 2014 OUTLOOK (as of July 21st) • Revenue: $530 million - $535 million, up 5% to 6% YoY • Solid Waste Price + Volume growth between 3.5% and 4.0% • E&P growth of 15% • Adjusted EBITDA: $186 million - $187 million, or about 35% of revenue • Assumes 30 bps drag from lower recycled commodity prices • Operating Income: 22.8% of revenue • Expect increased M&A activity and capital return to shareholders during 2H ‘14

  16. PEER COMPARISONS – 2013 AND 2014 (e)

  17. FINANCIAL TAKE-AWAYS • Unique combination of industry-leading margins (EBITDA, EBIT and free cash flow) and growth from: • Price + increasing MSW volumes => levered to improving economy; • Changes to or enforcement of E&P waste regulations; • Potential newly permitted E&P waste facilities; • Potential MSW and E&P waste acquisitions; and • Return of capital to stockholders. • Strong conversion of EBITDA to free cash flow • Current priority for deployment of excess capital: • Acquisitions and construction of newly permitted E&P waste facilities; • Share repurchases; and • Debt reduction. • Track record for increasing quarterly cash dividends every October • Dividends account for less than 20% of our free cash flow 18

  18. LONG-TERM OBJECTIVES • 8%-10% annual revenue growth balanced between organic and acquisitions • Maintain disciplined growth • Core solid waste price increase spread of 50-100bps over CPI • 15-30 bps EBITDA margin expansion per year, excluding acquisitions and changes in recycled commodity prices • Potentially greater margin expansion depending on growth in E&P waste activity • Slightly greater EBIT margin expansion given DD&A leverage • Double digit annual EPS and FCF/share growth • Maintain strong balance sheet as the right acquisitions are opportunistic • Increasing cash dividend and opportunistic share repurchases to return capital

  19. NON-GAAP RECONCILIATION SCHEDULES

  20. CORPORATE HEADQUARTERS 3 Waterway Square Place, Suite 110 The Woodlands, TX 77380 (832) 442-2200 INVESTOR RELATIONS Worthing Jackman, EVP CFO Mary Anne Whitney, VP Finance Phone: (832) 442-2266 Phone: (832) 442-2253 worthingj@wasteconnections.com maryannew@wasteconnections.com http://wasteconnections.investorroom.com

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