Waste Connections Inc., the Texas-based owner of the Chiquita Canyon Landfill in Val Verde, posted adjusted net earnings of 51 cents per share on Monday, ahead of the average Wall Street estimate of 49 cents.

The Woodland, Texas, Feb. 9, 2015 – Waste Connections Inc. today announced its results for the fourth quarter of 2014. Revenue totaled $526.2 million, an 8.3 percent increase over revenue of $485.9 million in the year ago period. Operating income was $114.0 million compared to $99.4 million in the fourth quarter of 2013. Adjusted EBITDA in the fourth quarter was $178.2 million, or 33.9 percent of revenue, compared to $164.5 million, or 33.9 percent of revenue, in the prior year period. Adjusted EBITDA, a non-GAAP measure, excludes the impact of items such as impairments and other operating charges or gains, and acquisition-related costs, as shown in the detailed reconciliation in the attached table.

Net income attributable to Waste Connections in the quarter was $60.8 million, or $0.49 per share on a diluted basis of 124.8 million shares. In the year ago period, the Company reported net income attributable to Waste Connections of $49.4 million, or $0.40 per share on a diluted basis of 124.4 million shares.

Adjusted net income attributable to Waste Connections in the quarter was $63.3 million, or $0.51 per share, versus $54.5 million, or $0.44 per share, in the prior year period. Adjusted net income and adjusted net income per diluted share, both non-GAAP measures, exclude certain items net of tax, as shown in the detailed reconciliation in the attached table, that affect comparability of results between periods.

“Q4 capped off an exceptional year for Waste Connections, with solid waste volume growth and increased E&P disposal activity once again driving better than expected revenue in the period and providing strong momentum into 2015. More importantly, the quality of revenue growth in 2014 enabled us to expand margins and deliver over $320 million of adjusted free cash flow* despite a record amount of capital expenditures in the year, including the construction of three new disposal facilities and pulling forward an additional $20 million of capital expenditures to take advantage of the extension of bonus depreciation enacted late in the year,” said Ronald J. Mittelstaedt, Chairman and Chief Executive Officer.

Mr. Mittelstaedt added, “As we look at 2015, we believe our solid waste business is well positioned for continued strength in organic growth and margin expansion. E&P waste activity will undoubtedly be impacted by the recent precipitous drop in crude oil prices. But just as we outperformed macro E&P spending activity in 2014 with our E&P waste revenue growth up over 20 percent , we believe we are also well positioned to outperform any macro decrease in E&P spending activity in 2015 given our asset positioning within each basin and the additional facilities we have either opened or acquired that were not reflected in full year 2014 results. Regardless of the actual level of E&P activity in 2015, we believe the strong free cash flow generative characteristics of our solid waste and E&P waste businesses should position us for double-digit free cash flow growth in 2015.”

Mr. Mittelstaedt concluded, “With over $350 million of free cash flow expected in the upcoming year, we have the flexibility to fund additional growth opportunities and increase the return of capital to stockholders. To that end, we are pleased to announce additional acquisitions in both solid waste and E&P waste with combined revenue of approximately $30 million completed in January, and the recent resumption of our share repurchase program.”

For the year ended December 31, 2014, revenue was $2.08 billion, a 7.8 percent increase over revenue of $1.93 billion in 2013. Operating income was $449.3 million compared to $393.4 million in the prior year. Adjusted EBITDA* in 2014 was $717.1 million, or 34.5 percent of revenue, compared to $657.0 million, or 34.1 percent of revenue, in the prior year.

Net income attributable to Waste Connections in 2014 was $232.5 million, or $1.86 per share on a diluted basis of 124.8 million shares. In 2013, the Company reported net income attributable to Waste Connections of $195.7 million, or $1.58 per share on a diluted basis of 124.2 million shares. Adjusted net income attributable to Waste Connections* in 2014 was $254.2 million, or $2.04 per share, compared to $221.7 million, or $1.79 per share, in the prior year.

2015 OUTLOOK

Waste Connections also announced its outlook for 2015, which assumes no change in the current economic environment and an estimated 25 percent to 30 percent year-over-year reduction in E&P linear feet drilled. The Company’s outlook excludes the impact of any additional acquisitions and expensing of acquisition-related transaction costs. The outlook provided below is forward looking, and actual results may differ materially depending on risks and uncertainties detailed at the end of this release and in our periodic SEC filings. Certain components of the outlook for 2015 are subject to quarterly fluctuations.

* Revenue is estimated to be approximately $2.15 billion, of which $260 million to $275 million is expected to be E&P waste-related.

* Adjusted EBITDA* is estimated to be between 33.5 percent and 34.0 percent of revenue, the components of which as a percentage of revenue are as follows:

– Operating income is estimated to be between 21.0 percent and 21.5 percent of revenue;

– Depreciation and depletion expense is estimated to be approximately 11.2 percent of revenue;

– Amortization of intangibles expense is estimated to be approximately 1.25 percent of revenue; and,

– Closure and post-closure accretion expense is estimated to be approximately 0.15 percent of revenue.

* Net interest expense is estimated to be approximately $60 million.

* Effective tax rate is expected to be approximately 39.4 percent .

* Noncontrolling interests is estimated to reduce net income by approximately $0.5 million.

* Net cash provided by operating activities is estimated to be approximately 26.0 percent of revenue.

* Capital expenditures are estimated to be between $200 million and $210 million.

Waste Connections, Inc. is an integrated solid waste services company that provides waste collection, transfer, disposal and recycling services in mostly exclusive and secondary markets. Through its R360 Environmental Solutions subsidiary, the Company is also a leading provider of non-hazardous oilfield waste treatment, recovery and disposal services in several of the most active natural resource producing areas in the United States, including the Permian, Bakken and Eagle Ford Basins. Waste Connections serves more than two million residential, commercial, industrial, and exploration and production customers from a network of operations in 32 states. The Company also provides intermodal services for the movement of cargo and solid waste containers in the Pacific Northwest. Waste Connections, Inc. was founded in September 1997 and is headquartered in The Woodlands, Texas.

For more information, visit the Waste Connections web site at www.wasteconnections.com. Copies of financial literature, including this release, are available on the Waste Connections website or through contacting us directly at (832) 442-2200.