Adjusted EBITDA margin expanded by 120 basis points
Adjusted earnings per share of $1.45
Produced $535 million of adjusted free cash flow
Core price on related revenue of 8.5%, and average yield on related revenue of 7.3%
Organic volume on related revenue declined by 1.1%
Recycling processing and commodity sales increased revenue by 40 basis points
Recycling commodity prices were $153 per ton during the first quarter, compared to $105 per ton in the prior year
Environmental Solutions revenue increased by $15 million compared to the prior year
Adjusted EBITDA margin in the Environmental Solutions business was 20.5%
Total debt was $13 billion, and total liquidity was $2.8 billion
Leverage ratio at the end of the quarter was approximately 2.8x
Combined tax rate and impact from equity investments resulting in an equivalent tax impact of 25.4%
Future Guidance
Continuing enhancements in digital capabilities and sustainability offerings expected to drive growth and customer loyalty
Development of polymer centers and Blue Polymers joint venture facilities is on track, with construction in Indianapolis progressing
Expect to deploy a new asset management system later in the year, aiming for $20 million of annual cost savings by 2026
Estimate approximately $60 million in incremental annual revenue from new technology to reduce contamination in recycling centers
Expect more than 50 additional electric vehicles (EVs) to be added to the fleet in 2024
Development of 40 additional EV charging locations is underway, anticipating more than 10 new sites to be completed in 2024
Planning for $500 million of investment in value-creating acquisitions in 2024
$230 million of investments in joint ventures (JVs) in 2024, focusing on landfill gas to energy and investments in Blue Polymers
Trends, Market Conditions, Sentiment
Strong customer retention rate at over 94% reflects continued focus on providing best-in-class essential services and sustainability offerings
Severe weather across most geographies during the quarter impacted large container and disposal volumes, showing a need for adaptability in operations
Favorable recycling commodity prices contributed significantly to revenue, reflecting a positive market condition for recycling operations
The company’s focus on sustainability and innovation, particularly in plastic circularity and renewable natural gas, underscores growth opportunities and commitment to decarbonization
Industry-leading moves toward fleet electrification highlight a strategic commitment to sustainability and may set a trend in the market
Notable Quotes
”Our strong first-quarter results demonstrate our focus on profitably growing the business.” - Jon Vander Ark, CEO
”The core operations are actually exceeding our expectation… Shipping to customers, they think it is some of the, if not the, cleanest recycled PET flake in the world.” - Jon Vander Ark, CEO, on the opening of the first polymer center
”This level of pricing exceeded our internal cost inflation and resulted in over 100 basis points of EBITDA margin expansion.” - Related to the core price on related revenue
”Our comprehensive sustainability performance continues to be widely recognized…” - Highlighting awards and recognitions reflecting the company’s commitment to sustainability and ethics
”We’re targeting a 25% EBITDA margin there in the midterm…” - Jon Vander Ark, CEO, on future margin goals for Environmental Solutions business
