Second Quarter net income improves $8.7 million and company achieves record adjusted EBITDA levels
Ponte Vedra, Fla.
Advanced Disposal Services, Inc., (d/b/a Advanced Disposal) announced today revenue for the three months ended June 30, 2016 of $358.2 million versus $355.2 million in the same period of the prior year. Net income during the second quarter increased $8.7 million year-over-year to $0.2 million and the company achieved record quarterly adjusted EBITDA and adjusted EBITDA margins of $107.5 million and 30.0%, respectively.
Revenue increased $6.6 million, or 1.9%, excluding the rollover impact of 2015 strategic business divestitures. This revenue improvement was driven by strong core disposal volume, which increased 5% on a tonnage basis from the second quarter of 2015. The company continued to see strong pricing with average yield for the quarter of 1.7%. Core price yields were 3.1% in the commercial line of business, 3.9% in rolloff, and 1.1% in residential, which was muted by the rollover impact of lower 2015 CPI. EBITDA margins increased 120 basis points from the prior year quarter driven by disposal volume, price yield, and lower workers compensation claim costs, benefiting from improved safety and fleet automation.
For the six months ended June 30, 2016, revenue was $692.0 million versus $685.5 million for the prior year period. Net loss year-to-date improved $5.3 million to $14.0 million and adjusted EBITDA of $194.3 million was $1.4 million better year-over-year.
"We are pleased to see improvement in net income and a number of other key financial measures during the quarter, including achieving record quarterly EBITDA and EBITDA margins for the company" said Richard Burke, CEO. "Our team remains committed to generating profitable growth and enhancing cash flow by focusing on safety and providing an excellent customer experience. These initiatives coupled with controlling costs, demonstrating price discipline, and closing on accretive tuck-in acquisitions in key markets will be the platform on which we drive earnings growth and improved returns on invested capital."
Advanced Disposal will conduct a quarterly earnings conference call on August 5, 2016 at 10:00 a.m. EST. The call can be accessed by dialing (866) 478-7805 domestically or (832) 445-1679 internationally and asking for conference ID 12094269 or the Advanced Disposal Q2 2016 earnings call. This call will be recorded and available via replay approximately two hours after the completion of the earnings call for thirty days. You may access the recording by dialing (855) 859-2056 or through the link on the investor relations page of our website at www.AdvancedDisposal.com.
The calculation of free cash flow and adjusted free cash flow, as well as details of charges and other expenses that are excluded from EBITDA in arriving at adjusted EBITDA, are contained in the “Reconciliation of Certain Non-GAAP Measures” section of this press release.