Weekly News Bulletin: Nov. 4-10, 2021


Waste Management Sees Big Jump in Third Quarter

Waste Management, Inc. (WM)
  Three Months Ended Sep. 30
(millions of $) 2021 2020
Revenue $4,665 $3,861
EBITDA $1,309 $1,140
EBITDA Margin 28.1% 29.5%
Net Income $530 $465

Waste Management said third quarter revenue increased $260 million net of acquisitions and divestitures driven by $137 million in volume increases and $123 million of growth from yield. Acquisitions, net of divestitures, added another $295 million of revenue primarily from the acquisition of Advanced Disposal. The recovering economy helped company volumes grow by 3.8 percent, especially compared to a 5 percent decline in the third quarter of 2020. The company also won price increases of 4.6 percent over last year. On the flip side, costs increased as the shortage of workers has forced the company to adjust wages and spend more on worker training and recruitment...Read More »



Republic Services Revenue up 14 Percent in Q3

Republic Services, Inc. (RSG)
  Three Months Ended Sep. 30
(millions of $) 2021 2020
Revenue $2,934 $2,572
EBITDA $871 $697
EBITDA Margin 29.7% 27.1%
Net Income $351 $260

Republic Services again beat expectations with third quarter earnings of $350.3 million ($1.10 per share), up 11 percent over last year, on revenue of $2.93 billion that was up over 14 percent from last year. The company noted that its $922 million committed to acquisitions through the third quarter is its highest level in over a decade and will likely top $1 billion by year's end. Collected waste volumes were up 4.3 percent over last year primarily driven by the rebound in commercial business, since residential volumes were down as the economy continues its transition and workers return to the office. Landfill volumes were up 6.6 percent. This helped the company push through higher pricing which increased by 5.2 percent in the third quarter over last year. Average prices fetched for recycled commodities skyrocketed to $230 per ton from $99 per ton a year ago. on the strength of its business, the company raised earnings expectations for the year to between $4.10 and $4.13 per share...Read More »



Waste Connections' Revenue Up 15 Percent in Q3

Waste Connections, Inc. (WCN)
  Three Months Ended Sep. 30
(millions of $) 2021 2020
Revenue $1,597 $1,390
EBITDA $506 $433
EBITDA Margin 31.7% 31.1%
Net Income $114 $158

Waste Connections reported stronger than expected third quarter results buoyed by the rebounding economy, strong pricing, and acquisitions. Revenue increased nearly 15 percent to $1.6 billion on 7.3 percent pricing growth and 2.2 percent volume growth that included an 11 percent increase in commercial volumes and landfill volumes that were up 5 percent. Year-to-date acquisitions have added $240 million in annualized revenues. The company expects to close on acquisitions that will yield another $100 million in annualized revenue before year-end...Read More »



Growth and Acquisitions Propel GFL Revenues up 43 Percent in Q3

GFL Environmental, Inc. (GFL)
  Three Months Ended Sep. 30
(millions of $) 2021 2020
Revenue $1,485 $1,036
EBITDA $416 $281
EBITDA Margin 28.0% 27.1%
Net Income ($245) ($115)

GFL Environmental reported a third quarter revenue increase of 43.3 percent driven by strong organic growth and aggressive acquisitions. Those completed this year are contributing $735 million in annualized revenue. Solid waste revenue increased by 8.2 percent, including 5.8 percent from core pricing, surcharge and commodity price increases and 2.4 percent from increased volume. The company now projects revenue for the year to be about C$5.4 billion, up from a previous estimate of about C$5.2 billion...Read More »



Exxon to Build Large-Scale Plastic Waste Recycling Plant

Exxon Mobil Corp. unveiled plans to build its first large-scale plastic waste advanced recycling facility in Texas, with operations expected to start by the end of next year. The company says the operation in Baytown would be among North America's largest plastic waste recycling facilities, with an initial planned capacity to recycle 30,000 metric tons per year of plastic waste...Read More »



Food-Waste Startups Attract Interest as Grocers and Others go Green

Food waste startups are attracting venture-capital as grocery retailers and other companies dealing with excess food are expanding their environmental, social and governance efforts, according to analytics firm PitchBook Data Inc. The US EPA estimates that between 30 and 40 percent of all food is thrown away each year costing the US economy over $161 billion. To address this, some startups are using artificial intelligence to gauge customer demand with the hope of reducing leftover food, while others are using technology to streamline logistics processes and resell misshapen produce that grocery stores turn down...Read More »



Casella Q3 Exceeded Expectations on Revenue up 19 Percent

Casella Waste Systems, Inc. (CWST)
  Three Months Ended Sep. 30
(millions of $) 2021 2020
Revenue $242 $203
EBITDA $61 $51
EBITDA Margin 25.3% 25.3%
Net Income $16 $15

Casella Waste Systems said third quarter revenue rose 19.4 percent to $242 million driven by higher waste volumes and pricing, higher recycling commodity prices and acquisitions. Solid waste volumes are up 2.8 percent from last year during which the company has successfully won price increases of 4.1 percent. During the year the company acquired nine businesses with $86 million of annualized revenues. CEO John Casella said they expect to recognize roughly $50 million of revenues in 2022 from the roll-over impact of acquisitions already completed in 2021." Consequently, and for the third time this year, the company raised guidance for revenue and earnings for the year. They now expect revenue between $870 million and $880 million and net income between $37 million and $41 million...Read More »



LRS Expands in Midwest with Purchase of Orion Assets and RAMCO

LRS, formerly Lakeshore Recycling Systems, continues to expand with a pair of acquisitions that bring new territories in Arkansas, Kansas, and Wisconsin. The purchases include territories in those states held by Orion Waste Solutions and Waste Recycling Solutions' RAMCO-AWM business in Little Rock, AR. Collectively, they bring with them 19 municipal contracts across the three states, 140 new employees, 108 trucks, a C&D landfill and five hauling facilities. Backed by Macquarie Asset Management, which made a big investment in LRS last September, the company has made thirteen other acquisitions so far in 2021 and now considers itself North America's fifth largest privately held waste and recycling company...Read More »



Supply Chain Disruptions Shift American Mineral Sourcing Inward

Over the course of the Covid-19 Pandemic, disruptions to supply of workers, revenue and lockdowns have all played roles in creating bottlenecks for a variety of global supply chains. Different countries have applied restrictions of varying severity at different times, making importing and exporting goods a much more complicated endeavor for companies across the globe. One of the commodities that has been impacted by this has been rare earth metals. Rare earth metals are mined in many places across the globe, with China being one of the largest suppliers. Covid-19 restrictions have made it much harder for firms to get those minerals into the United States...Read More »



Republic Services Opens California's First Solar Powered Composting Facility

On October 6th, Republic Services announced that it has opened California's first fully solar powered composting facility. This facility, located in Chula Vista, CA, will compost food and yard waste collected from the San Diego area. This facility opening comes just a few months before a California state law that will require most homes and businesses to recycle organic waste comes into effect...Read More »



Waste Connections Reports Emissions Reductions

Waste Connections recently released its 2021 Sustainability Report in which it states that the company has reduced greenhouse gas emissions related to its operations by roughly 8%. This number represents progress towards its stated sustainability goals. Among other things outlined in the report, it also states that it increased biogas recovery and resources recovered. Additionally, it notes a decrease in workplace safety incidents and an increase in its minimum wage to $15 and an increase of benefits for employees...Read More »


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