Waste Connections, Inc. · TSX:WCN
Waste Connections — Raymond James Institutional Investors Conference 2016
24 slides from Waste Connections's conference presentation, Mar 8, 2016
Slide 1: Raymond James Institutional Investors Conference
Raymond James Institutional Investors Conference March 7, 2016 Filed by Waste Connections, Inc. Pursuant to Rule 425 under the Securities Act of 1933, as amended, and deemed filed pursuant to Rule 14a-6 of the Securities Exchange Act of 1934, as amended Subject Company: Waste Connections, Inc. (Comm
Slide 2: Safe Harbor and Forward-Looking Information
Safe Harbor and Forward - Looking Information This presentation contains forward - looking statements (which include “forward - looking information” within the meaning of applicable Canadian securities laws ), including those regarding the proposed merger between Waste Connections and Progressive Wa
Slide 3: Additional Information and Where to Find It
Additional Information and Where to Find It This presentation does not constitute an offer to sell or the solicitation of an offer to buy any securities, or a solicitation of any vote or approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale
Slide 4: Participants in the Solicitation of Votes
Participants in the Solicitation of Votes Waste Connections or Progressive Waste, as applicable, and their respective directors, executive officers and certain other members of management and employees may be deemed to be participants in the solicitation of proxies for their respective security hold
Slide 5: WCN: Investment Highlights
5 WCN: INVESTMENT HIGHLIGHTS ; Third largest solid waste and leading oilfield waste company in the U.S. ; ~$10 billion enterprise value; $5 billion assets; 7,000 employees ; Differentiated strategy ; Only company focused on secondary and exclusive markets ; Well - positioned in cash generative E&P w
Slide 6: Our Differentiated Strategy
6 OUR DIFFERENTIATED STRATEGY ; Success in solid waste industry is driven by: ; Market selection ; Asset and contractual positioning ; Execution at the local level Our Focus: ; Exclusive markets ; Vertically integrated or non - integrated ; Competitive markets ; Secondary markets with high collectio
Slide 7: Targeting Attractive Markets
7 TARGETING ATTRACTIVE MARKETS Integrated Operations Non - Integrated Operations Exclusive Markets: - #1 EBITDA margin - #1 EBIT margin - #1 FCF margin - #1 ROA - #3 EBITDA margin - #2(tie) EBIT margin - #2 FCF margin - #2 ROA Competitive Markets: - #2 EBITDA margin - #2(tie) EBIT margin - #3 FCF ma
Slide 8: WCN: Comparative Metrics
8 WCN: COMPARATIVE METRICS 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 2013 2014 2015 Price Growth WM RSG WCN - 2.0% - 1.5% - 1.0% - 0.5% 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 2013 2014 2015 Volume Growth WM RSG WCN ■ 2015 Price + Volume Growth: ■ Waste Connections => 4.8% ■ Republic Services => 2.0% ■ Waste Managem
Slide 9: WCN: Comparative Metrics (cont.)
9 WCN: COMPARATIVE METRICS (cont.) ■ 2015 EBITDA to Free Cash Flow Conversion: ■ Waste Connections => 48 % ■ Waste Management => 37% ■ Republic Services => 29% 22.0% 24.0% 26.0% 28.0% 30.0% 32.0% 34.0% 36.0% 2013 2014 2015 Adjusted EBITDA* as % of Revenues WM RSG WCN 4.0% 6.0% 8.0% 10.0% 12.0% 14.0%
Slide 10: WCN: Current Footprint
10 Serving almost 3 million customers in 32 states WCN: CURRENT FOOTPRINT
Slide 11: WCN: Financial Highlights
11 WCN: FINANCIAL HIGHLIGHTS $0 $50 $100 $150 $200 $250 $300 $350 $400 2011 2012 2013 2014 2015 2016e $ Millions Adjusted Free Cash Flow* FCF FCF as % of Revenue 25.0% 27.0% 29.0% 31.0% 33.0% 35.0% $250 $375 $500 $625 $750 2011 2012 2013 2014 2015 2016e $ Millions Adjusted EBITDA* EBITDA EBITDA as %
Slide 12: WCN: Long-Term Outperformance
12 WCN: LONG - TERM OUTPERFORMANCE
Slide 13: WCN + BIN: A Compelling Combination
13 WCN + BIN: A COMPELLING COMBINATION
Slide 14: Compelling for Shareholders
14 COMPELLING FOR SHAREHOLDERS ; Brings together complementary footprints under WCN’s proven management team with long - term record of shareholder value creation ; Retains WCN’s commitment to differentiated strategy ; Combined year 1 revenue of $4+ billion, adjusted EBITDA between $1.25 billion and
Slide 15: WCN + BIN Combination
15 ; Stock - for - stock combination ; 70% owned by WCN stockholders; 30% BIN shareholders ; Expect dual listing on NYSE and TSX under ticker symbol ‘WCN’ ; Closing expected Q2’16, subject to customary closing conditions ; Combined company to be led by current WCN management team ; Board to include
Slide 16: Complementary Footprint
16 COMPLEMENTARY FOOTPRINT 16 Legend Corporate HQ Regional HQ/Office Collection Transfer Disposal / Landfill Recycling Intermodal E&P Transfer E&P Processing & Disposal
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Slide 18: 2015 Financial Highlights
18 2015 FINANCIAL HIGHLIGHTS ; Revenue: $2.12 billion ; Solid waste strength ; 4.8% price + volume growth ; 2.6% Price ; 2.2% Volume => collection and disposal trends above expectations ; Adjusted EBITDA*: $710.6 million, or 33.6% of revenue ; 180bps margin improvement in solid waste ; Solid waste o
Slide 19: 2015 Financial Highlights (cont'd)
19 2015 FINANCIAL HIGHLIGHTS (cont’d) ; Completed solid waste acquisitions totaling $90 million annualized revenue in 2H’15 ; $ 75 million revenue new market acquisition in Illinois, with leading collection position in several suburban and rural markets, integrated operations with two landfills, and
Slide 20: 2016 Outlook
20 2016 OUTLOOK (as of February 9 th ) ; Outlook excludes any impact from BIN combination or other acquisitions completed in 2016 ; Revenue: $2.2 billion – $2.22 billion ; Solid waste: price + volume growth between 4.0% and 4.5% ; E&P waste: approximately $150 million ; Adjusted EBITDA*: approximate
Slide 21: Non-GAAP Reconciliation Schedules
21 NON - GAAP RECONCILIATION SCHEDULES
Slide 22: Adjusted EBITDA
Adjusted EBITDA* 2011 2012 2013 2014 2015 2016e Net Income (loss) 166,171 159,660 196,005 233,327 (94,694) 241,245 Plus (less): Income tax provision (benefit) 106,958 105,443 124,916 152,335 (31,592) 156,055 Plus: Interest Expense 44,520 53,037 73,579 64,674 64,236 66,000 Plus: Depreciation and Amor
Slide 23: Adjusted Free Cash Flow
Adjusted Free Cash Flow* 2011 2012 2013 2014 2015 2016e Net cash provided by operating activities 388,170 416,327 484,061 545,077 576,999 596,700 Plus/Less: Change in book overdraft (227) 398 (110) (11) (89) - Plus: Proceeds from disposal of assets 4,434 2,741 11,019 9,421 2,883 - Plus: Excess tax b
Slide 24: Corporate Headquarters / Investor Relations
CORPORATE HEADQUARTERS 3 Waterway Square Place, Suite 110 The Woodlands, TX 77380 (832) 442 - 2200 http://wasteconnections.investorroom.com INVESTOR RELATIONS Worthing Jackman, EVP CFO Mary Anne Whitney, VP Finance Phone : (832) 442 - 2266 Phone : (832) 442 - 2253 worthingj@wasteconnections.com mary
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