Company achieves revenue growth of 7% and continues to attain significant year-over-year improvements in cash flow from operations
Ponte Vedra, Fla.
PONTE VEDRA, Fla. (August 2, 2017) – Advanced Disposal Services, Inc. (NYSE: ADSW), (d/b/a Advanced Disposal) announced today revenue for the three months ended June 30, 2017 of $383.1 million versus $358.2 million in the same period of the prior year. Net loss during second quarter 2017 was $0.2 million, or $0.00 per diluted share, versus net income of $0.2 million, or $0.00 per diluted share, in second quarter 2016. The company achieved quarterly adjusted EBITDA of $109.8 million, an increase of $2.3 million versus second quarter 2016. Adjusted EBITDA margins were 28.7% during second quarter 2017.
Revenue growth of 7% for second quarter 2017 represents the largest quarterly increase in three years. Acquisitions drove nearly half of the increase led by the company's recent purchase of CGS Services, Inc., a vertically-integrated waste collection and disposal company in central and eastern Indiana, along with seven tuck-in acquisitions completed during the first six months of 2017. Organic volume also turned positive during the second quarter at 0.6% driven by growth in disposal revenue and average price yield was 1.4%.
Net loss increased $0.4 million and adjusted EBITDA improved $2.3 million during second quarter 2017 versus the same prior year period. Gains from the company's organic growth and new acquisitions coupled with interest expense savings of $11.1 million year-over-year drove increases in the company's core profitability. Adjusted net income improved $7.1 million in the second quarter of 2017, which does not include a $13.0 million non-cash impairment charge incurred during the quarter. Additionally, lower cash interest payments along with working capital improvements and increased profitability drove a $27.1 million increase in cash provided by operating activities during the second quarter, and adjusted free cash flow improved $16.8 million.