Item 7.01 Regulation FD Disclosure.
During our earnings conference call on May 7, 2020, we discussed the fact that the trajectory of the novel coronavirus pandemic, its resulting macroeconomic impact, and the duration of that impact are uncertain, as is the extent to which our results will be impacted by the pandemic, and that as a result: rather than provide an outlook as we usually do based on current economic conditions, we believe it is appropriate to suspend the original outlook we provided for 2020 in February; and we intend to update our full year 2020 outlook when we report our second quarter results.
We also highlighted the following potential implications for the full year 2020.
(Dollar amounts are approximations)
We believe recent revenue and margin trends along with reductions in capital expenditures, all of which were outlined in our earnings release and discussed on our earnings conference call, should enable analysts and investors to better calibrate expectations for the full year, as follows: revenue of about $5.25 billion, margins down about 200 basis points year-over-year, and about a 50% conversion of adjusted EBITDA to adjusted free cash flow.
The information furnished in Item 7.01 is not deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, is not subject to the liabilities of that section, and is not deemed incorporated by reference in any filing under the Securities Act of 1933, as amended.
Safe Harbor and Forward-Looking Information
This document contains forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995 (“PSLRA”), including “forward-looking information” within the meaning of applicable Canadian securities laws. These forward-looking statements are neither historical facts nor assurances of future performance and reflect Waste Connections’ current beliefs and expectations regarding future events and operating performance. These forward-looking statements can be identified by use of forward-looking terminology, such as “believes,” “expects,” “intends,” “may,” “might,” “will,” “could,” “should,” or “anticipates,” or the negative thereof or comparable terminology, or by the discussions of strategy. All of the forward-looking statements included in this document are made pursuant to the safe harbor provisions of the PSLRA and applicable securities laws in Canada. Forward-looking statements involve risks and uncertainties. Forward-looking statements in this document include, but are not limited to, statements about the expected impacts of the recent novel coronavirus pandemic and the COVID-19 outbreak, 2020 financial results, outlook, implications, expectations and related assumptions, capital expenditures, and potential acquisition activity. Important factors that could cause actual results to differ, possibly materially, from those indicated by the forward-looking statements include, but are not limited to, risk factors detailed from time to time in the Company’s filings with the SEC and the securities commissions or similar regulatory authorities in Canada. You should not place undue reliance on forward-looking statements, which speak only as of the date of this document. Waste Connections undertakes no obligation to update the forward-looking statements set forth in this document, whether as a result of new information, future events, or otherwise, unless required by applicable securities laws.
