WCN - Earnings call transcript Q2 2020 | Waste Connections, Inc.

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Operator

Greetings, and welcome to the Waste Connections Second Quarter 2020 Earnings Conference Call. [Operator Instructions].

As a reminder, this conference is being recorded, Friday, August 7, 2020. I would now like to turn the conference over to Worthing Jackman, President and CEO. Please go ahead.

Worthing Jackman

good and operator, you, morning. Thank and welcome I'd to and this QX call to our like our second for environment to discuss operating quarter conference current year. everyone results, full the outlook the this joined morning our Whitney, I'm CFO. Mary by

costs strong margin earnings in volumes collection, in expanded and for incurred results solid in better-than-expected and second the year-over-year waste execution of disposal release, waste noted continued operational in significant quarter. As quarter. drove in our recovery solid Adjusted COVID-XX-related spite the EBITDA transfer

acquisitions our In reported quarter. entirely believe us from to COVID-related onset, waste incremental over we the the and the waste preparedness better in year-over-year fact, offset the margin in emerge solid period attributable the pandemic frontline and positioned activity, costs, impact supplemental decline primarily wages will that At was margin it. underlying E&P than million in during the execution expansion this related more to margin reduced $XX we leave when of dilutive as

only we provide already of the we are a preliminary had May. in recovery, communicated full expectations to outlook for in our stages pleased the Although above year the early

our into housekeeping to let call detail, much Mary get and items. disclaimer me the Anne turn we Before more for forward-looking other over

Mary Whitney

statement, Canada. results release, in to Commission in and Factors August and uncertainties. differ and the information both statements could Actual such Exchange materially laws. commissions greater similar including the Private securities and morning. differ Securities forward-looking Reform applicable Thank made you, Litigation could harbor cautionary in statements including Worthing, today's of Securities and detail, of made Connections forward-looking in during within U.S. the from good in or of Canadian in pursuant discussed The are results earnings safe Waste call includes filings discussion our forward-looking provisions to U.S. the meaning Act risks actual the cause authorities X those the securities XXXX, regulatory various to with due that

of You to are an as on after presently believe any make or undue or risks aware our adverse forward-looking we revise which statements have should order additional which forward-looking to currently on in be commitment events reflect change impact place not today's We statements business. could immaterial, we circumstances no not date. update reliance are that there or may that may

our measures our measure. and non-GAAP non-GAAP a On basis measures, such Other flow. dollar call to and cash most EBITDA, over the differently. GAAP discuss reconciliation I financial non-GAAP to such for comparable net adjusted Management share operations. to free performance ongoing diluted the and Worthing. adjusted we call, to releases evaluate income Connections of as will adjusted on earnings both the turn per Waste these calculate attributable of non-GAAP refer back measures Please may certain measures will now companies uses the monitor to the

Worthing Jackman

and full while colleagues; underlying waste Mary Great. the and as for the preliminary and hardships employees XX,XXX expense the pandemic. service on focus year. all provide in reflect you, of the of welfare with These solid business the Anne. quarter, from have maintained and we We're and expectations enduring our our who many health, Thank provided as dedication May resulting the extremely management; margin and outlook exceeded resilience the of well commitment support, the community the results our basis safety revenue the their continuity; challenges in which increased results second our for pleased

service other resulting economies as the to mostly from COVID-XX impact and resulting revenue those markets activity in operating closure levels by from the demand the services, changes continues results, we at be and collection in or reopen. for Looking driven disposal requirements of limitations

in by from early resumption and May. down and a service of XX% associated solid geography, a pace the regions end XX% our waste basis. reductions such, customer of year-over-year and By increase or for respectively, out of resulting revenue customers markets had revenue QX, revenue mix. the all solid frequency and in shape showed competitive improvement or same-store solid X%, up during XX% varies service market and in Volumes our about expectations commercial magnitude of recovery reached of reduced size lost preliminary in QX, and waste As we monthly of suspended exceeding the X.X% had that waste of track on in in

impacted year-over-year and down a about Excluding markets solid were in quarter in the Northeast the most basis. the on X.X% Canada, waste revenues

reflect the results and on as cost declined volumes of revenue quality focus the control on company-wide Our period also in as volumes return.

us underlying year-to-date, along a As the year in ago reduction debt to enabled COVID-related XX% margin in with of driven to $XX we in overcome frontline costs and impact wages expansion and since earlier, incremental acquisitions in margin Cash primarily the exposure waste as expense. QX, supplemental DSOs solid also better-than-expected completed dilutive improved have related bad collections million noted period.

and especially communities women in our focus continue financials, a or and ratio Turnover and hardships, and safety Looking have our welfare Frontline at attendance business. to levels. our efforts those our health remains near the level. improve. on local communities beyond in further been the performance and continue record with top expanded we remains unexpected Philanthropic employees, support experiencing and children our priority national of at risk to equities in to organizations, invest

have activity vision and And Certificate we Waste and to company for connectivity, transfer improve employee were children Iowa introduce technical awarded collection acquisitions camera collection solid been systems cuts We're Year-to-date, in our customer AI machine COVID-related in G exclusive A to trucks Our operations electric of constraints. later with company and and year. goals. approximately acquisition in in this an disposal closed first vocational, spite in test also support making million university education and on revenue, of annualized and including beta pursuit their restored. and investments integrated this CapEx pace we're technology and an logistical $XX fleet Nebraska. year into diligence onboard scholarships have garbage of COVID-related of portion totaling additional another inaugural Connections Washington earlier year

we in and South which In acquire a completed addition, and company Dakota expect to tuck-ins about to $XX in we York, New and Oklahoma, collection agreement with Texas; in signed revenue, recycling Idaho, have mid-QX. an have annualized million close Missouri,

by July recent trends, customers revenue waste QX. Looking of in in volumes and increased and compared to about by service, QX competitive of service commercial XX%, end since about in to XX% XX% track XXX have out of points subsequently, reduced resumption at solid or markets have solid improved sequentially respectively. for and XX% reached we suspended that waste in basis The or as frequency increase the associated

additional transfer continued acknowledge that COVID-XX the waste and reopenings requirements. up reported July accounted year-over-year on revenue and EBITDA month. points, collection, revenue may at exceeded complicated volume for about and results margin We by Northeast, Looking outbreaks entire excluding July, for in impacts basis persist and adjusted plus Canada was E&P for was down the in estimated the an waste year-over-year Reduction impacted declined disposal X.X% markets. of from X.X% and closure and Price points. most in revenue down that recognize decline solid the was basis activity the estimated our imposition a be the and XX decline basis XX in margin

differentiated we to Thus, about in EBITDA the incremental includes these costs in points of over adjusted free second adjusted to $X.XX the cuts $XXX to of E&P our adjusted layered of as the or of the in down XX% half trajectory the activity in $X.XXX and said, year-over-year about consolidated XX year-to-date, outlook. XXXX; offers year be year. underlying ultimate full margin basis such, adjusted costs, The XX.X% of or on market for until back to we inherently year-over-year EBITDA On X% We've That our COVID-XX-related included selection. encouraged are business July flow Moreover, points and cash our COVID-related in development. for with EBITDA. this daily all will the expansion waste incremental to $XX in impact between resilience XXXX expected to increasing our the of by flow adjusted XX solid $XXX our remain from QX strength presented for results. COVID-related business opportunistic unpredictable, in is that portion billion, landfill basis $XXX our free approach we As XX% provided than a our in follows: the more equipment growth for change billion basis accounts to about have waste the and million have outlook sufficient outlook recovery the we future or strategy and of known million emerge trends not any addition period. margin attractive revenue of CapEx revenue about the With expenses offset it and our in of tracking, fleet, achieving CapEx potential we additional and our of expected exceeds our economic change way year. million XXXX well cash from reflecting and year business of no and we trends, to year-over-year; significant as down revenue of change million, year-to-date has decline $XXX full million underlying our purchase acreage from insights recovered, are also and our additional assuming projectability the outlook, demonstrated

million shares, the Finally, Yesterday, approach to we've and authorizing $XXX we of announced over outstanding returned of issuer to which the normal dividends will shareholders bid, repurchase annual already share of continue our up renewal to we year-to-date. X% opportunistically. course repurchases through our

in We increase dividend also in percentage another announcing cash anticipate our double-digit October.

the higher half significant for waste or With markets, particularly have half beginnings of provided the price in growth to the for Looking resilience of a XXXX. losses, negative double-digit concerns to heading the COVID-related our potential the pandemic second has I'll off of year, XXXX outlook pricing the of anticipated funded plus for I'll strength into to provide outlook financial point better. volume waste outperformance discretionary in the the and and pass that Q&A. before that, then the costs highlights a up review only driven second back call to with the basis majority first of our Mary of position a we we'd jumping wrap QX. The and the about and a provide Anne of solid points solid volume could in to volumes, XXX quarter our of be detailed

Mary Whitney

the was Worthing. was the down revenue reported quarter, of billion Revenue period. preliminary May recovery expectations in to half period better-than-expected $XX.X a due revenue we basis or contributed the on solid completed E&P in million you, of on quarter waste Thank year $XX million about the the $XX million during or activity. or ago lower In waste X.X% divestitures. about net with Acquisitions volumes decline $XX million second about $X.XXX the provided year-over-year, above almost since of

growth to by overall about somewhat more offset on to X.X%, basis an core negative X.X%, plus the most X.X% of regions. QX to a in in Coast competitive Solid X.X%, in of negative in expectations, reduction waste line our from was and markets Pricing price impacted X% to XX% price negative in Central in was including markets more over Eastern ranging Western QX in and X.X% exclusive Pricing regions in region in our growth flat our point a mostly ranged basis and in Canada exclusive volume our West Southern from same-store our X% XX average surcharges. XX% with our regions.

X% growth down volumes Northeast regions Central down X.X%, U.S. and Solid regions Western most declined and in to the was our XX% impacted and in Canada while waste the in about Southern, XX%, with X%. between volume QX

each limited in our largely size related all markets, the business activity and mix have or As activity line reflects regions in of shutdown orders, our that customer which noted, activity. varies depends Declines we shape and on of by volumes markets prohibited and across to in shutdown QX and construction some pace in reflected reopening decreases geography, market. including

and in the with approximately year-over-year revenue period pull on at of revenue the decline. impacted collection markets about per same-store XX%, Looking revenue year-over-year the about that Commercial for decreased half approximately lower on Northeastern down in a weights. down about X% Canada accounting pulls most Roll-off X.X%, results on year-over-year basis. XX% decreased

X%; as although down were basis price about XX% revenue X% down X% Solid about XX%; a year-over-year. XX%. special increased about down year-over-year, C&D, per declined MSW same-store average waste landfill on was total waste, tons tons down ton and

rig was charge waste assets, in count foreshadowed. Looking our and drop at activity activity. which a about reported $XX.X waste associated recognition second million had of This decline $XXX E&P E&P quarter, for for the long-lived of We XX% million noncash future year-over-year. revenue impairment the E&P resulted reduced with in as we demand, down in in also expectations waste

landfill EBITDA or and headwind revenue to marginal at revenue million, disposal stronger as X% $XX our the landfill but values RINs. well million recycled to more for basis the points be commodities down the year-over-year At commercial credits, our about commodity expectations preliminary revenues, QX and release, to and QX, renewable reconciled in commodities, resulting XXX preliminary of higher were and points impact than EBITDA waste than of lower Adjusted XX.X% below Adjusted of offset a by energy better about from XX they E&P small half our as acquisitions, gas, of QX, second nominal for Looking from due flow-through basis quarters. year-over-year was higher above was margin aggregate, tailwind combined revenues current returning recycled lower with recycled in down recycled $XXX.X RINs, year-over-year the earnings XX gas lower expectations, with percentage about rates could excluding about basis impact activity. punitive in volumes. collection due decline a year-over-year, in entire points, a for due RINs, their XXXX, sales commodity prior

earlier. XX as drag and margin from point In addition, from a point XX completed of year RINs, was since ago dilutive and basis basis the impact there drag acquisitions another period noted recycling the

million the expenses, in notable in which risk accruals as reductions XX Solid in the costs, $XXX,XXX. credit gallon about period. increased points revenue, for were $X.XX $XX offset and items diesel higher was waste expense medical discretionary up year-over-year and disposal CNG margins compensation included basis points in fuel of or XX% third-party expense, brokerage lower more bad $X.X averaged down quarter about collection, about in deferred about disposal rates of than a about from basis transfer ago down XX and incentive, on and million QX X.X% in COVID-related approximately and fewer gallons, debt expense. and year We per year-over-year the $X.XX Fuel quarter, over

the impact proposed April $XX.X quarter from from XXXX. Our the tax expected, included, due tax effective for which rate finalized regulations as XXXX in million XXXX late a IRS impacted were second XXXX, to and

XX.X% $X.X approximately of million an XX.X%. year-over-year. this approximately flow and of $X.X in the GAAP outstanding for of Adjusting at effective pay rate discrete expectations the end segment item from down free in $XX.X and cash revenue diluted net $X.XX second was rate full million of amortization were and cash impairment in as on basis quarter. on in $XXX.X tax the with QX billion XX.X% We QX was was million of ended Adjusted second share credit tax $XXX.X E&P Debt our billion, quarter per as QX and Capital the adjusted of in As or over billion net impact excludes such, facility. about expenditures of was the due in line period quarter the to quarter with our and was our in down balances liquidity. $X.XX the available the net discrete $XXX $XXX charge and X-month $X items. acquisition-related million share diluted item, up the the for XX.X%, underlying primarily QX noncash the was the adjusted income year Adjusted of year. million during the to half intangibles well adjusted loss other first per EBITDA. income

at a X.Xx around as the QX. debt-to-EBITDA. on basis, our of was debt debt-to-EBITDA leverage ratio, X.Xx end And leverage at our about defined net agreement, in credit remains Our

of weighted X.X%, quarter debt fixed all average third current our of now essentially Our approximately will outlook review I is cost our with debt XXXX. the at rates. for

and carefully. with We safe the Before SEC filings authorities securities remind Canada. I harbor these similar commissions again may to do, vary review our encourage based in outlined the investors statement and everyone or actual made factors significantly and risks to in like uncertainties regulatory results on we've we'd that once

trends. expense significant transaction-related the approximately assumes of may is be the during items in change Our from underlying during additional in that also remainder estimated no QX $X.XX Revenue new the period. any excludes outlook close of acquisitions economic and It impact to billion. year

solid plus to negative price negative the X.X%. negative range X% for and expect X% in volume and in to price range growth the waste We negative between of X.X% X.X%, to range with of X.X% volumes

revenue. about expense to E&P or be of amount, to estimated estimated income is net is per be And to to quarter $XXX Worthing in And from expect to activity back expense, quarter in me diluted for Of XX.X% effective net amortization estimated about in approximately QX XX.X%. $XX.X Adjusted of account to is estimated to about approximately QX revenue. QX, $X.XX million tax be million. that in for is about we call less some the addition, revenue. or of share taxes. XX.X% million be intangibles let revenue be now final In Depreciation third Interest rate before is than over the waste $XX EBITDA the our Q&A. of X% remarks estimated turn amortization interest for of reported and of

Worthing Jackman

employees, expectations drove better-than-expected pandemic the Thank outlook positioned quarter to and and communicated second waste over the for preliminary May. the Anne. commitment and we of execution preparedness year in solid Mary Again, strong us full and our the results our recovering our you, playbook, in increase had operational dedication volumes

our time. of frontline this this during employees appreciation up and an evidenced for throughout expressions many uncertain the as providing service chaotic pandemic to XX,XXX by to normalcy stepped bit provide a essential have extended Our of customer

We now appreciate better-positioned closer-knit we the to today. pandemic. and emerge questions. from the this Operator? call operator turn time up for a your as I'll to open are over this lines your company We

Operator

Instructions]. [Operator

Chiang question first is coming from Our CIBC. line of Kevin the with

Kevin Chiang

good lowest quarter, Congrats be QX to U.S., to look looks at second I you the points for here. split this Canada between turn the could if Maybe XX just the on positive about the a In and I spread. If Canada. are pricing. basis

should kind numbers Canada United look time? opportunities in these States? do think converging in see pricing to still latent of you see Just here more over to what you two out wanted of versus capture here, Or the we

Worthing Jackman

the we've Obviously, the reprice completed to book. X know, of transaction. the or you progressive the into go we we're more years about we when as need Kevin, -- talked progressive and the closing transaction, into

So consistent this with worked and see do year, those through time the because what earlier year we communicated book. throughout last we've converging we over

Mary Whitney

I into guess, Kevin, to Really, out as the expected. playing the pricing coming this that would our what is, just we I And, that is had consistent with add is expectations year.

the As in time, we may step-down noted even had And you was had because to talked carryover of that we most it recall, QX. QX did you periods. at prior the outsized those in about from we pronounced Canada PIs

Kevin Chiang

maybe math per rate million just a going my question revenue If correct, second in run think my sub-$XX That's month is here. I helpful. you're average to And E&P.

then Just to more your one see does wondering, to margins, roll it regional reduce one, eventually this to if Or into think do for can And decremental stand-alone this out a segment? take make segments? low sense maybe I stay cost guess, you rig reporting as still you you counts do here what of longer? secondly, the maybe

Worthing Jackman

Good question.

profitable rapid the we've remained decline. So first the of proud fact off, through that I'm

in our tremendous As all as count. rig a other did in up any space that year, than lot last talked business company declines our better despite margins we held

decline. in You, obviously, to from acceleration QX QX saw the that

to collection have that's positioning Our a and that still to now than they're execution folks testament the margins company company. asset we again, are right, disposal -- more -- like tight a and the a still landfill And our company, looking have.

regions Southern EBITDA standpoint, in to an Those standpoint, chosen segment CapEx EBITDA X region. from running so standpoint, still together into it's sit have From same the office. a segment consolidate minus And our that positive. we

kind from consolidate command-and-control a a it of and overhead basis two. And made an sense those basis so to

the out President oversaw oversees so used that former person you region. Southern who know, RVP may region RXXX that person solid within Vice a the and assistant also now regional oversee the the and is is RXXX As waste, to that

command And the so we've where sense. made it but and kept control, consolidated

Operator

line of next is coming with the Hamzah Our question Mazari Jefferies. from

Hamzah Mazari

on $XXX did My almost just first million cash looks is first you question free It half. flow. like

but half sequential seeing conservative, you the momentum seems more are in business. Second

maybe the which you the guide to baked they talk some if maybe could especially takes, had free some are costs of maybe because So about just you've back, cash and reiterating pre-COVID. some puts peers the your flow of guide, conservatism coming in

your is were you I guide a little than think pre-COVID. lighter what thinking

you're through us high-level thinking on thoughts walk about how just that? So

Mary Whitney

half puts conversion are with Well, of say And I'd and conversion of the you're assuming lower to $XXX that with to back the year. start of second the the million there rate about, coming said, first in as happy things Sure. that we start and the year. in year, with, the you in of couple over the know higher we are takes are takes, a half in a right, Hamzah. half XX%

weighted stepped There cash for and the interest still as expense, our $XX So and taxes fixed. million come the of which cash extended about up debt back we are year. are to in taxes half of to tenor the instance, heavily our

We half impact a in the year. and the the first back the have of the that full in of only year impact partial half of

is that, it's But numbers, year are of arguably, the for you the half And benefit think should flows about year a how instance, of discrete it million. would the -- alluding first So benefiting in in payroll be, everyone longer-term cause which think taxes, this some to for and items depends to from about. about I what the year say in all improvement, the there there Worthing about year, as And you we conversion which then look from. take $XX million is and $XX fully about up as would ourselves you as -- change. our And you on be deferral smoothing total I'm that what could described think DSO term, for to more and also, is we think clearly, multiple his over guidance. could our as works setting higher that And remarks out show again, this year that at know, we would years. our benefit of if the X number that to well. $XX which benefit about out style or days, the Similarly, all million which, this about longer what of could

Worthing Jackman

rather Yes, I'm year $XX cash cushion flow down flow with million an next to is million to into $XXX next glad this through free year go than defending let why it all start year. flat and

Hamzah Mazari

a sort That and something you've a waste has adjusted you go it going it. see customer wave momentum question us of And a downside. my lagged, Got lot Is that strong quicker, from on out is downturn, where the do Right. goes Is up? of I the the upside help is bankruptcies and -- through a coming out? it July? of downturn. churn that just almost think V-shape it recovery, consumer into makes it's momentum? just just with very else Clearly, strong a sense. different. flattens just had lot a Or sequential pandemic, both Just the of derails here? in we This the derails then think do what guess, historically, the you business is,

Worthing Jackman

Sure.

is really that plateaued. First, our for we I'd year, that as recovery our has think the say about assumption outlook the

not continued for into think But the the wrong outlook to we'll recovery. on our that. balance we're bake proven going year, I the be of

only there and markets XX% Canada clearly, recovered more the are have some Now in about that not the of XX%. Northeast impacted revenue,

will and to I school recovered restaffing kind start resumes closer continue that throughout buildings, that XX% economies of to the elsewhere those suspect revenue we've markets as reopen, seen those of As governments get system.

Mary our So guidance could guiding year-over-year obviously, likely the expect X% to some further for as ahead we're guidance. upside that to recovery the balance QX and provide said, X.X% declines them. And volume our year handle were July quarter. that I X on of there's of in still down Anne full we mean,

has lights the things come on, that So the do that phone, But that there's you business likely as aren't where where cushion of kind see doubt, is of a answering some won't without recover. recovered yet, one some the of back. no where is not

to And But yes, come so punching numbers the have time. relative a back to industry industry business happening doubt, expect is news like we likely won't good back. come that, has it through the the come But clearly, hasn't macro. some still back, is lot some it without some in a good pretty for what's takes of that the

Hamzah Mazari

just then turn over. I'll lastly, it And

disciplined? even is you pipeline, just terms majors your terms M&A, from are aggressive more M&A year, next you come it larger and as then just of more their M&A spend said? acquisition increased to just maybe you're that just are being on seeing Just more transactions? are just there's in And that's had appetite competitive? Or in -- being bidding Or doing some that activity of just of competition change more and others just both -- any the is you there disciplined increasing

Worthing Jackman

beholder, Yes. any remain I banker. mean, of company what positioning, folks willing importantly, to to generated are And speak right? pay. I by another the the can't what's transactions. a doing. attractive for on We one company of always, is most willing free flow. financials be mean I as know, beauty you always may another. not company may one eyes pay, in is not Look, is fit What focused know we for market remain the transactions highly as and cash selection skeptical so our and I other asset to

that So hasn't skepticism changed.

these a be that M&A past this said in X high we look, So period, years activity. will

this activity to into There additional rush be Folks of year want year. end to seeing get You're could happen. it law. by the tax of certainly this still

how remains done year could in if or might much next a might naturally more there next to during seen into flock year that place, So momentum lot just out potential in tax be there because, it year of changes this much, law impact how calendar of concern sellers. get clearly, there's is

Operator

the from of coming Raymond Tyler is next line Our Brown question James. with

Patrick Brown

a directly really I know of comes COVID, leadership did employee means the what that seems It even these? talk of called I big little have but know in or model it culture. you of a $XX kind creep times like at may that is can you times so seen like not in it costs other $XX And be leadership your out servant part like about Worthing, these million? if that wasn't we bit may a in cost. when servant million shines,

Worthing Jackman

to And Well, been folks not frontline, lot like it's our operating decision-making doing model, culture local employees. supplemental our you're and the the right? culture I this And chosen that locally to only our child is mean, I frontline obviously, for have level, care, We've issues. they a pay And we're do We've company momentum. our if -- we've care combines quickly tragedies. are done mean, employees. wages. of remote, the have not right pivot look, think chosen some it counting about pay chosen think you pandemic. to and a sort different, about That's little day that's you relief. when lose accountability I to now, their people employee in with empowers in million leaders And success. to can a how We've that's good on we're spouses think people a if a folks. what think we they at to our it's people work. their look, really question. are through I with XX which million them of really government every we about and them supporting a on of of key assistance, company those able supporting a lot decentralized to our XX We're said We're matters. we've employment that time to local this, driven our success workforce personal Look, how always think think

so did wave. to the wages money the And us incumbent in supplemental more it upon through frontline. it's We in first get

mind. in things other have We

year. frontline. a or the As some Mary We'll our we're said, higher are Anne a accruals during likelihood anticipating things do other wave. for this the Look, incentive top second third

-- the this the and what targets we're It's of throughout And We're We're set servant others come year it's we're that. the in we for we're the we're our the We've the your place huge our culture. to That's And just back they the fiscal had blow you always in got our deliver people we'll of And foundational targets relative people. and again, results organization. in payback -- work after April started. closer-knit of going in out for harder in here pandemic again, before I dividends we've budget again, doing We budget. of our they just in put rooted reduced have a seeing different this the Ron in, just would've I on company leadership that benefit benefit year right that surface before, because than set see company penalize culture cut aspects that in customers. so as paying not turnover. when I tough that of take care a benefit as seen said away seeing to pandemic scratching when improved and to not -- think a folks -- think pandemic. are starting cut got -- that safety. time. period said We a the to mean

Patrick Brown

Right. quick, Mary Anne. That's No. Yes. Real extremely helpful.

you go puts can headwind; feels M&A, RINs and and COVID, could then year-over-year core tailwind; through recycling guide? the a what basis? we E&P QX a solid have maybe is It at waste margins, solid of but embedded the a strip QX, on basically, away and some and margin we then the be if And look what is may like missed it, I -- expansion? embedded waste kind So but takes

Mary Whitney

Sure.

QX difference be we're So drag of E&P XXX of terms from back thinking in half basis QX is year the similar the that and between the biggest was like points, and the would more QX. XX QX expected basis about and points drag in in in

basis flat. XX around essentially in basis COVID underlying QX point that drag. Acquisitions are And in waste points expansion points RINs Worthing So recycling that spite XX that, of implies there. in are built is about what solid a as of costs said, XX the you've about and got fact basis of margin

there said so be could in nominal little maybe tailwind, a I my that. As tailwind remarks, boosting a

Patrick Brown

Okay.

one one just last Okay. Perfect. real for quickly, purposes. just And simplicity

in see then a on deals from into revenue we M&A to perspective? based the rolls how much Just from that just And date, much you've XXXX? should 'XX, how done modeling

Mary Whitney

Sure. Sure.

right million, of in all XXXX deals. and QX million $XX you to you're a that in the about So QX, brings $XX million and of from $XXX total about

deals divestitures, of the year, $XX we've says roll million that done So million to from this would gotten net and that the some last year. about plus from next $XXX then $XX million year,

Worthing Jackman

be that. to anything to And that's will close additive yet

Mary Whitney

Correct. Correct.

Operator

Sachs. coming line Our Goldman next of with from question Maguire Brian the is

Brian Maguire

may you're was sales a Just down for July outlook. be but just this like third quarter be like looks X% question -- comp down conservatism, it the guiding the July It and to -- sales and on or X%. looks

full things anything just that a you'd better to of around in little here different are comp shut to got, school least have going wondered you've year. there the for that be Just was markets schools, bit thinking what the And unique Houston, at some like the quarter? July would than the start if rather end looks made like, expect about

year, you a July, from wouldn't think. in I the that in wouldn't in like comp, like later rates back unique headwinds that? some But have the you month could get you seasonality necessarily as that the into things year-over-year do think have So some

Worthing Jackman

Yes.

X to earlier a negative can once question exceed. meet we link try your it. or I revenue. I've think that exposing we X.X% about I that but on July had when for outlook X%, We're guiding it back know, comes what we is -- to give cushion think handle volumes QX, you said to for As again the And

say projectability forecast closing about to at you conservative $XX playing X%, there's rolling the -- means I I quarter here obviously, constant pandemic we're and the even But just that if there's we look out we relative so million X/X here. about the as the we too out. would $XX talked of is thing though still play potential to quarter And by July. to at before, One the look upside revenue think of the do of million as business,

Our our July expectations -- exceeded our revenue X.X%. about -- we by

dialed think of kind we're you business the we've we think expectations. how going scope to in know on, about the when what's of So narrowing

and continue? so $XX much higher we keep than pocket, Absolutely. on And But pocket our in on again, just million like better trends keep something in in numbers that. if like pocket or Degrees our $XX of go July could our always beat magnitude, million. we free flow. to shouldn't our something something margins it's too People cash

Brian Maguire

And sense. more little bigger picture Makes bit pricing. Yes. question around just then a just of a

positive been I years, think over backdrop. the last a couple of it's

to others also think in lot need you a the cited have guys and to industry inflation, the of prices. recycling lower I need the recover cost the offset

in of know a can this Yes, its will the of benefits, folks. really Recycling for I ton is forward? question the think probably anybody just Because in pricing head poked of going has water hold. I support will kind everybody sort but lot around getting kind it than environment. more way cost of the discipline is and looks a of what industry above industry like temporarily, has maybe thought -- back

you would being? expect deflationary the end pricing, So start be to maybe have would guys talked in range historically normalize there naturally pricing lower this just industry we more environment, you where of see towards will the but it about

Mary Whitney

the which about that continue as spread we a it, way to Sure. we I Brian, it is CPI. think say, to historically would have, communicate

down under we the down, And are consistent that's will And we slowed ahead therefore, again, would the in we're of less in came it what positive a way expected. we consistent meaning as out extent ahead, on we that think that, X% with move past. and that basis so playing we've the look reported range? it that's has said the to pricing as possible to down it's point, suggest on year, that that course the XXXX, over we as XXXX, the so costs step to seeing, said X.X% steps with that where control, to and is really Yes, your into

Worthing Jackman

is CPI points be -- basis But kind running at running would that spread the again, still to of number. XXX-plus

Brian Maguire

Yes. Yes.

a maintain in a everybody to you trying was but benefit XQ, lag the to make is, I wonder if prices And But year-over-year? Any from in I from there kind some the talk last just that been will just to think, there? quarter of just quarter benefits, like getting cost is down sense? diesel CPI. of upfront, have again, might to the to could benefit in make how way Did which lag much deflation guys you that spread good I a I me. about able quantify guess I one think getting the lower that? any be what seems on pass-throughs was pricing for or thing. you're overtime if the be the

Worthing Jackman

What A bit quantified, at Yes. but was prices I fuel fuel CNG standpoint, it as was basis that down a decline from that was about most was diesel of in of we've year-over-year. points. revenue mean, least the a credit, little XX the of percentage other?

Mary Whitney

May, was And returning. XX% the call were bottom been that those and coming down we our that overtime with at really has saw in in as business really depths respect to last the into of we because said back coming where quarter, overtime, about we've said costs the

So less of that. on a focus

Brian Maguire

Okay.

XX% probably? then came bottom. some of back, came as And the the back well, that So volumes of as

Worthing Jackman

having XX% Yes. back we to which hours, overtime about being of where into total pandemic. kind going were of We're the is

Operator

from White Bank. question next the Our is line with of Kyle coming Deutsche

Kyle White

revenue Texas of to of Florida. I progressed up? rising Anything cases cases in of the July, open just wanted kind started were as impacts there how early spike such as kind seeing throughout terms has in and those notable see the we're to to states that recovery states and

Mary Whitney

Sure.

information. give So you happy to anecdotal some

second referring surge We you're places is really any seen step-down a where or or in a you've -- wave haven't to, which Texas. what Florida I those think of seen any markets, in where like

North something is by months, look impacted then that, said, the at is the below one Worthing And seen the way a we in And no like look or more haven't XX% like like of. and so when markets, down less X XX%. the York market the But didn't at with really, conservative think would a how the recovery we New it's the any well about step up in we backwards aggregate, It's I recovery. open which And I around material in our we're Northeast As again, of for change averages to contrast and last of meaning really Canada, instance, to average. it that mindful over out. City, example. and as it's still Houston, And recovery, yet be XX% reasons XX% plays above really something it's at numbers. quarter XX%.

Kyle White

business the about of long Is that there then kind helpful. change this just making operate the it's anything That's on may participate? cost to Or on if be kind what permanent? is side, you of to markets or cost you you your just a active think whether for way question. and Or you exposure to anything E&P? in that be your pandemic bigger term, And the any want have takeouts want strategy you

Worthing Jackman

think missing of -- we've out urban of into the the a think you their the course, good do to still secondary markets is have balance we have no, so balance. people last recovery. have much we we is markets, to as "So urban environments?" And It's while large New and irony, price in Obviously, us, balanced said, nice But of We've a talked got retention about migration couple Yes. no, the suburban years, exposure, and those been it's best markets term. slower urban asking don't have you people you're long a resilience obviously, the and mix. are some ability where, there York

X like two years, hand in geniuses But -- right -- year They might to It's But this in that we We with businesses we're happened hold work And change current continue see so the look the impact footprint. now. all strategy. we no crude had see we numbers. like year, stupid big there look we in. the You right? like together. well We makes a play that what's the in all our market. obviously, look, no, us in our that what we'll

Operator

from next Michael Hoffman Stifel. is line the Our from coming question of

Michael Hoffman

we to pandemic XX% in of collection all before side, of incrementals of to incremental? XX%. because cost so some incrementals now the the do the about savings? we XQ, better this incremental going the the do better you end and happened, to XX% What On retain because you've come we disposals And kind you're sustained XX% costs. clearly, a managed overall often to forward? about how Does get talked low think going about -- up talk

Worthing Jackman

Yes.

a period conversation. those I pandemic to structure weeks. recover the I things mean, the high when decrementals X% come completely to thinking out and going the you we embedded of weren't decremental business in because versus the acute don't incrementals, weeks revenue the think you've fixed revenue. you was you're X aggressively markets the have where pandemic at got might to in played having separate at in In costs impact that on different X% heads my as is rerouting back was was really like flow-through. incremental on business that the loss look or and had cost in least, cutting in cost mind, the less on based volumes, or to examples, a impact X if or well. It type We X% weren't very

had as your markets in markets. So incrementals seen also. high parking those where managing aggressively to the the you compared held the Contrast other in off. were where as are and on severe to and cetera, so as Northeast the as like returned more cost to Canada, markets, trucks et contractions, high needed, not as headcount, you've proactively decrementals in you there, and incrementals flowed and were those as revenue revenues But also that, extremely you

company the we cost So Look, back clearly, on as a incrementals as were better than the the we the that that items tweak of line type we side, markets modestly. the how having irony, course, because economy performed top decrementals look recovers and operate of others. is come control experiences the on as discretionary will different on different

back face-to-face. get will to We

training is back We time when the get right. will to in-person

of our any day and back of with will to frontline day. town meetings We hall get at time the the all times

little how type in as of back for that insignificant a ones throwing back it's We'll pandemic ones will the bar come market, We'll incrementals, and hit start back the cost those come And with parties different it again. of Mary to which Anne of wait which and kind by Michael, look, when shape came so out And can't have costs paying this. be start to come that's them in. of will business, decrementals, of the bit So out described, different coming in. again. not I But given has bills the the cost. did comes

Michael Hoffman

back first down year, do you X.X% second Okay. did it very sort in The would thought then half, sequentially X% half. X% basis -- the in the you X.X% statement, to you'd to Price, going XQ February, points what were think, to related telegraph do. view trend XXX X% I the when clearly to what Is and to and X.X% And your in for report of all original for XQ, a and that difference between originally in the the you of XQ is then X%, is pandemic. accurate? question it's X.X% you sort of a

Worthing Jackman

Yes.

Mary Whitney

a back which we about little EPI, it's million you The expected. it extent the year. in amount, out has what the $XX because maybe Sure. Yes. playing nominal just really it's just half layered really QX, clarify, as been that to the in that's different a to an said we And we've -- from deferred of

I the put the think of X.X%. your is that step said don't pricing first down we the we saying too to point half So on a course that point, would year. fine over

said of that is into increases carried instead, forward rolls I of price because outsized QX we timing think the QX.

in So we the mindful the we're the sensitive what's implied you're around exit no think to that. pricing. thought numbers we're at this that about that's we we we'd Obviously, and that, we year think there's by of But presented. that so change the X%, agreeing see given really pandemic and timing way the I that

Worthing Jackman

year X.X% X.X%. like X.X% still we in we year, pricing. think obviously, I the not for the expect to plays X%, guided full And X% out, full look the as to And year

expectation. Again, original our of Mary Anne closer some about, have we end -- pricing deferred to math been would we the that of talked the end of low the at upper had we're range. that So

Michael Hoffman

important Great. the inflation, of leverage? a about it have an index. so that talked But you for And of internal you're implied. known I've is is your more then spread you to -- a that it's the the spread it's the the while always other talked message XX-plus about years point creates that's cost managing that consistently kind question and spread but probably bigger of So statement, appropriate disciplined very you

Worthing Jackman

agree No, I your with a But statement. mean what got yes, that's to you by look implied at we question that. do

Michael Hoffman

Okay. $XX $XX is unclear, including, the million but not that just done deals XQ? on Anne, close the might the then in to Mary And million date rollover M&A,

Mary Whitney

me, the Michael, Yes, that's pardon me, -- that Excuse $XXX entire that million. correct. would No. is be No. me, pardon

what is and $XX essentially the year meaning that's I've So gotten from million $XX amount million rolls it's next communicated. $XX $XX already the million to million done, $XX plus million, then whole

taken been has in credit no meaning for XXXX. that So

Michael Hoffman

-- and therefore, you it Right and but okay, were happened, rollover. there's assuming the

Okay. what I Got That's clarify. to wanted it.

Mary Whitney

Correct.

Worthing Jackman

signed a on that, waiting Michael. just for We've agreement Yes. already definitive date. We're closing the

Mary Whitney

deal in clear And that that our what nothing make to is wanted from there XXXX I outlook. was

Michael Hoffman

about when it. Got being right normal. margin now? E&P it. Got XX-ish it were statistically, then is you've And talked business a percent Right. Where things

Worthing Jackman

a cases. million Well, per think, margin of million that's that E&P is Right why dipped, the time more we was its about bit again, month, off to comes last some revenue a called the dip. running now, to we're prior at bottom now, so it down level, the at a you XX% to to a as in see business -- And you closer right in month. the held that $XX about I coming depth or close now, if below company $XX running I below million Yes. on XX%. the revenue collection decremental look depth. the And come $XX Right at again, like and down little or so -- that

Michael Hoffman

$XX, $XX were? back and April 'XX, this back That your got we oil to you where by right margins Right. back were fall, was of and

Worthing Jackman

at to bottom I is a suspect -- don't a in QX, a XX/XX, return, companies, said, lot it's drilling And of programs look, that whatever think folks lot right? have And magical January when kind of don't reason, the in "Hey, so the for I you year look their New I'm over." this want of having rigs but I kind of have Yes. lot companies calling of of in, kicking the 'XX. starts, Year capital say

be pretty much so of -- I you think what's -- the anticipate to pace into can any what's 'XX? then year, this And flip will year. the for And we the balance of happen is the recovery going the question as calendar

Michael Hoffman

cash. excluding it. free that's Act. Got year, lastly, on I if last not you're CARES the a then returned mean nobody And equal guidance -- if you're has actually to

be at are that's a So the Connections? better And think out? of Waste should we're previous your at looking what that comments I what -- the sort percentage any ex you're for your about why everybody's the though, differential CARES below plan. your of Proportionally percentage as Act. previous, case a drawn of

Worthing Jackman

let just our it's to don't everything think know, flow. I style not, Well, of I not

as some and free converting We're look to for can't through to make say, of And or metric to EBITDA so term. going and in hit. a or unexpected higher we there's others year chances sure make still flow still at committing we're deliver to. sure long very this back look, this that additional are case than to cash we're make we're attractive opportunistic over XX% what the that remain look, going investments still running we move is I

this let's at economy we 'XX. and into as lot on so cushion that the given move enough hold time be should of a to of right And now, shape the

Operator

Our Markets. the of next question Capital is line with Sean from Eastman coming KeyBanc

Sean Eastman

big next some Nice just go to wanted year. M&A. Hope see work parties quarter. this I to back to

into be the could planning You anticipating understand But half. a that we a Just should this this from in around and normalized $XXX kind you're of Or you're to rush of And sort more perspective quarter there as deal read deployment Washington million acquisition activity in second kind seeing anything also $XXX kind is of activity mentioned on from the terms trying be franchise done around? interesting. year? capital planning a there in in what about perspective? what thinking Any of an case? that -- of get annualized topic, of in is second to million a to the revenue in markets in base

Worthing Jackman

end been hey, in sights now, have of sized the we Look, we in the be well bet get uniquely for I I no $XXX year, $XXX deal our maybe full year X or so them can averages do chute million strategy, year. later Typically, to done a or to driven always to metrics, what's September. keeping the that's above to average driving that just then our even point maybe million our the Look, into in hey, the think X keeping $XXX an that calendar the million if of easily has a your timing. seller What than would to say sellers better $XX of, great million, right first needs to revenue. transactions to or million think, that, or and than wants we million $XX numbers if this million, year. $XXX is any that $XXX that's And really we up

is get And so with this year. particular next And running done our for time those know might call sellers. to should we on more what calendar regards

Sean Eastman

Got in you today well? as as it 'XX message maybe year, to be it. into far likely But as I active next even guess, overall see

Worthing Jackman

at to a Well, again, tax sellers that things the if and drive -- to of you issues transition our table. move lineage look lot come

would table next that get business of in a to are up. they it I could business just laws? -- it think to their And have act optionality next the more it's well, all certainty transitions is laws if to that of are the seen their our assumption takes and that kind performed D.C., look year Or there understand flips likely because, that know because to value right? people always changed But year again, tax think, in as table going or they as down has the what together the and out make I for sector year this year? be last in change into so, to of if think year that them will get bet this tax taxes at folks want might around you've may these certainty to drive people the question you the how they or the exist, in this sell 'XX the a to come there's the 'XX. taxes. Is got businesses. everything what X other well, to D.C. than Lineage into year we want this will take would change And just perform years we that X can pandemic

Sean Eastman

Yes. Understood.

the recovery pace Just going back of sort to question. of

bucket thoughts group still that where through and And do that? are canceled? they're potential of that get good In just gets I back how the mentioned those to on come handle mean, terms potentially curious lights that doesn't you of manage your not have picking the off, how businesses there. you I'm -- a phone. up of you do

Worthing Jackman

for very I good the good spent Yes, lot of I of time a a we really mean, preparing a because pandemic, it arms risk our early as pandemic, it because one, up customer you for in punitive. a folks things. not we our booking a the unwinds that a that revenue -- mean number that's with trying forward couple pay play not question future have all of that's may sure really to can around that runs be us make brings

million because we our which they're lot our is time just said in the days. And you've seen for See, so XX think, of change we're bad a we also, payment, debt for think to debt that. bad educating incremental so let's not why, going closed or a extend spent or I either us timing month $X.X we policies at of bookings. around And folks

future. you reopen, the in of might some As unwind businesses that see

keep tracking be view bad your you make and in COVID on our to you've -- track that's business, how recovers, we got lot cautious are you've have to look, so standards by And overconservative, fine, to data easy you're and mean, it's debt to account, And on to there's revenue if lot our recovered got of talk are we doing. the recognition. is tracking, sure commission And in got commercial revenue of the But isn't by accruals cetera. periods. spent that around you've means market, salespeople daily the we're overestimated -- arms gets as as we place. trying of I future et then support to controls about lot paying insight a a everything get got to time that it We've you've comebacks reserves. our it, if if a in and

Mary Whitney

What said, track that that that with that, given is, is I averages us it's as historical it's at tells would in point. that cancellations. the add Worthing to what we That And to low number the in fact as also about X.X cancellations meaning line aren't there.

how all about So about back. we've points made businesses we're to think the been glad that conservative we those coming Worthing that

Operator

[Operator Instructions].

line the Our is from next of Noah coming question Oppenheimer. Kaye with

Noah Kaye

actually the some out efficiency comment improving interesting decentralized during things of those benefits cap really is as around pandemic. but your of Worthing, XXXX from role heard rolling to that. technology into question, of I a my you've we kind of your and model, some operational the like also in waste operational peers vision run connectivity commentary part the we've play and think last And which this floor more know increased coming tools, been you quarter

what the an out of would operational from investments So you call those in terms impact perspective? had

Worthing Jackman

going et thing. running be it improvements, of Look, their our communities, driving and of doing the and these the ought savings, modeling you cetera. right and people and just well, welfare stop safety and that's and headcount how Keep your sort to keep operations, good a health do folks do running out business look, people or -- this and that take we're I don't safe. talk I we your use it's that, not or you about of know, mean, as to good business technology mean, additional

with savings Do the other get Absolutely. too? Our -- come savings hit areas of P&L along all time, in the that? do we Absolutely.

help for or to waiting that things whatever are and to avoid say, event the and what to about to instead is record P&L. in tell portfolio an trying But inertial have And happening. there to to of say, the operating employees of you and overall or if laser march to we I means you. like X I talked to the other very that what mean machine try so in look, expectations seatbelt, to And cell those in mean, let's with sure leverage something mean, you. just out vehicle, Well, approach we in make around to that's that trying communication got I We're strength and from improve rolling and not engines and or move. to let's uptime systems P&Ls a blind moved X AI predictive stop That's basis machine be camera real-time shift using powerful -- I try you. blown pricing and that to to to wearing to to, it reduction the a things can this phone is the our a the we're in cab. how a that's our that would huge This bad around happened that's around a not staying tools, focusing on eye I road do turning the what say, reliability a on for a hit of we vision the recorder around or maintenance kind calls. the got there the of a record can good can lane,

it online other acumen said, we've and I pandemic, got of be have doing whether this the be time. Learning the of existence it through so so et training, that happened we're industries the engagement all this been Systems, than kind a would before in period cetera. this technology this zooming, and how understand have and companies, of technology, through hell bandwidth, lead And There's lot LMS, online, benefit think, the servant we training, of driver business in fleet able those onset been to if in is and the many leadership the lot different what things of all do we're whether pandemic Internet industry be that unique online, for tools, whether we've Management we've will video okay, it a

Noah Kaye

the appreciate of very and And from need to don't the you that some I maybe think, a didn't that your those I no have all past. you have detailed impacts, benefit technology I tools call time you through question, that. of list Well, out, now tools necessarily yet, exist in just to think, quantify, a this perspective, found And went point, financial we in around.

So pricing opportunistic is truck maybe used one more around Clearly, and the you machinery CapEx just down. truck generally demand depressed, spend. got

about if more buying add of age at primarily the differentiation to fleet? you're maybe And this technology something small you cost I'm on as is Or spend. or getting year. a you ownership trucks Or I that, just part better of the sure that's But would I mean, just is perspective? trialing this else a municipal lower you mentioned economical electric of is just this potentially there trialing very call trucks total can just more and with seeing for So from new the pricing out? positioning powertrains bids? economical are more to EVs

Worthing Jackman

X a were life And right? the that of payloads with, a, we to and beta the chassis we've evaluating the and be been we'll EV and we units have consistent in units have, of right? to diesel units consistent X the route of EV different -- battery that hours body. finally the in and past until for then which chassis which And diesel payloads see were on that batteries Yes, years the so X I product X mean will decided side. different -- and different of waited all excuse have EV truck, will to with we EV X X the the markets, X me, first kind or be

diesel that in in EV, reduced how EV And might hybrid et X.X-year more. span. that or could be so might usage, a Obviously, Xx -- going cost we're cost XX% the see our expectation to while fuel full we payback they to X- Look, perform. is cetera, maintenance,

certain California, it like make some ahead future. and sense Coast already you in they're as looking EV so markets and the can looking areas deploy. And Obviously, out to mandate West markets move to into

diesel stop industry is to a so use just CNG the reduce to way and up stop in a obviously, And way EV. that to emissions, this on the nice while was of clean

as money be month July, And the additional to got just When a And similar I significant CapEx, forefront of for to. something the so mean, it cash we've others of use optimistic doing this comes mean, thing, in of same that. very marketplace. past for We've Québec the landfill, we resource bankruptcy for amount I at are invested an for to flow track facility in of large both park we out future a acquired -- further development resource province that in well to opportunistically initiatives on marketplace. in existing of land as that recovery our recovery a recycling also

optimistically, And some so unique we as to in take there that we're presenting. are various doing things things markets, and advantage of we're say,

Operator

Yee from the Our of Stephanie with next question JPMorgan. is line coming

Stephanie Yee

quarter a that quarter, be lower the think guide. revenue the and XQ. implies XQ guess on versus would It just would the fourth third clarification in improve volumes I than that I will

of fourth just would revenue? there that that implying be reflective that in the lower is is lower Or price quarter? energy So

Mary Whitney

Sure.

a down you're consistent would versus just across industry with QX. see you decline QX, What's typically right. the step implied is Stephanie, that QX seasonal which So to in be clarify, the actually

the quarters way it's the X, X. X, about that think X, flow, you If

half as And year. the into of about we fact, down, QX. Worthing haven't of QX. continued and and as said, step expansion in the coming in back stepping And you So the the as is he that that's down we plateau, again, QX how way QX, described assumed there course, it guided think we between

this that's So that at right in seasonal be a time. thinking less the been point we there's seen. think arguably, And pickup that about you've to way of

it So in out be, QX as expected. could fact, conservative even if play does

Worthing Jackman

Yes.

you the to bit comes conservative, things And between X% room If little to about over look back then QX, that seasonality, better to expectations QX. wanting to a performs if QX typical point exceed again point meet for because that. our as about provides again, you to about there's a look, to in and upside. upper decline during your up Obviously, opening what, we've of my or in assumed and point end X% time, sequential be that

Stephanie Yee

Okay.

you early, guess it's guess, I next That Okay. makes attractive term, be year? And business longer I expectations but And are sense. in? think your the business still to energy do into I an it's for what know still

Worthing Jackman

Yes.

X you this -- span for business of look, been years. we've of now assets that in of If almost kind

off EBITDA we've $XXX think that and million of I over period about million of $XXX CapEx. of of minus gotten time, it about EBITDA

as and a business, there's I what great is Obviously, business. it's been be reductions great this, a fuel think call we'll with standpoint, like I right? so business the will costs, is business. a would seeing it in a fuel and valleys. peaks The a, and are you up, to that don't tell And is else When And want increase hedge, from but that recovery so a there you're happening. valley corresponding in it P&L of fuel of about going back, offset guess what comes cost that so cost

at coming And a It's -- in low. we'll it's the see as low. business pickup well. unique no, obviously, we're some bottom again, off back, So that rigs start as a

early got last and other this because impact we out did space that have some peers. folks year compare a well tremendous attractive so of business, year. in more a you're in, again, a profitability, so just maintain long year last that so year. managing done into last when companies impact year this I to to lot of Our P&L pronounced very you It's that the seeing P&L and their washed their especially cost was mean in to job profitability our

that as you this did our that are also for that impact, don't much than for better peers that year. so see We of instance, And much in business just P&L longer. them

Operator

Instructions]. [Operator

is Markets. line question RBC Capital Walter from the with coming next Our Spracklin of

Walter Spracklin

more but this those down impacts last that months, get in occurred I'd given has done I of change the from you the particular, the areas. the that start month, election mentioned of now? the what you road Do coming couple I tenor structurally the and acquisitions. is find you know up, And do three months, and and has -- really two activity urgency to your were COVID for acquisition And contemplating get of there selling that, the like here a in where sense your post-COVID lasting to able discussions changed valuations the in before? with a want start get nature around to to with the you transactions same level for be lower seeing those as you where negotiating might pre-COVID? versus leverage are multiple Or the in

Worthing Jackman

pandemic, just Yes. no what worth. and know that, the they're or done what Look, gold-plated fine through are they're know We gold-plated, worth. the they Pandemic they companies have pandemic.

and from tax-driven went of some to mean, time their They a into additional long. pandemic, at an some here's it's just Some find they've in through standpoint, I -- of of struggle. where is period markets, you the tired. a they fast it timing being employees of stopped downright it's been forward so now it

in home markets. cases, in some versus folks show at more government, money their stay for up paying got You've the some of to

it's just And so a a -- worry it's it -- can up.

that EBITDA, primarily There's business. up. more a will the go fact well. up flow some with to think staying think now market -- the in years turns as corrects don't about go effectively well. the taxes that, I reform to driving they've accrued buyer people tax how X coming are was we've down. Obviously, X risk back down. the out the But the coming with are over come right of Obviously, any, a valuations tell gone when again of down that stock money, I valuations some timing to up look, in coming talked then was more playing tough as And If doubt, you it is that of cash the it's because free without valuations cash so are past couple taxes and obviously,

So past can't period. get free, valuations there can't We've is But of in when couple better times than a get said that the money is any this. this. definitely a unique better any time than they

will great prepared been, just to not business. a to a right? and it's it, holding rush -- in selling, folks, I think to and for it, have And interest keep do the so mentally the They're be on Others it's I exits. they'll no those future. mean, there's in deals some such

we Iowa, got was And late done, Some transaction the think, got finally in like years I Nebraska. 'XXs. the done got stuff of I offer mean, in, first we've we've the closed. that done later, it in XX

time. things take some these sometimes, So

Walter Spracklin

some -- want contracts, It's on COVID have will would move to which How to you for based now to we closing -- it's on time. impact on a Can some quite been a arguably, there's been basis. municipal basis, move that volume the having into post-COVID that per the you've year-over-year will pricing? go some risk seen pricing. been that the now that the Obviously, goes if -- household a up Will figure Or example, pricing are up, had you strategy level downside of How you your you've COVID-XX? pricing your you've a COVID-XX? potential will then adjust that from change volume reflect that experience get that volumes -- price quarter? to develop up with your just to do

Worthing Jackman

Yes. that's company about residential of Look, of quality we on price been and our quality haven't a complained the revenue side.

one our rate you've municipal to pricing Obviously, generally a I CPI, form have side pegged or upon throughout right we we now. we're that one. corrected of sit along past contracts month, in contracts contracts that I that either for transaction with are going those flexibility mean us of have our you is bad Look, not some depending complaining more this large through a return mean, the are where we're of we of the so still start very some mostly to price progressive And through. the pricing increase working where simple. came that that on business U.S. in contracts got structure. got And a subscription cases, residential just

got more cetera, on well years that. exit. reprice practice more We've we'll or for X and thing do in a in one how for correct think we very assets. some right market I large likely we've one in that that practice. reasons, that the system will pandemic the -- contracts another to X for to things likely long years owned X the for leaves QX. reasons, cetera, ago, corrected structure left correcting capital those Again, doing will got or that reasons, our et just that if been do We've really those a left or increase on. see our people, based of And just host we that for done, don't this be cases, is are price gets another as one inherited et move happening in X of contractual market, that it And

it and pricing attractiveness relative changed. And dynamic as matters changed. operate you the markets in -- to So as hasn't The move it's well. how residential does pricing hasn't seen and we've matter, again, market selection those

Mary Whitney

costs, and I outsized pricing of would can create that it or -- thing one it the the those And next to you're volumes, other is have add on year some opportunity than would entitled the describing get are types that importantly, we highlighted franchise been otherwise but there and therefore, better extent like people to negative higher opportunity an to. have including of get Coast waste, certainly the pricing more markets, West the costs to exclusive to, creates

-- every mix the including there point, everyone's recovery in. business, markets franchise think factor is I exposure So mechanism Worthing's to of where to that

Operator

this are time. questions no at there And further

Worthing Jackman

to allowed Terrific. you team, today. direct Canada. and call I your that appreciate further our and applicable Thank Well, laws on we Anne again. Reg behalf did in today and we securities are we're FD, under if are any to answer no Regulation cover Mary available listening the to interest entire in management of questions, G answer questions there not that

you being conferences always, person. Thank in forward we earnings our you you. virtual or able As And next we call. at miss meet speaking look with to on upcoming investor to with our

Operator

and for today. you We the ask call participation does please That disconnect your you for lines. conclude thank conference that your

Waste Connections (WCN) 7 Aug 202020 Q2 Earnings call transcript