Registration Statement No. 333-259244
(To prospectus dated September 1, 2021)
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Per
Note |
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Total
|
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Price to public(1)
|
| | | | 99.933% | | | | | C$ | 499,665,000 | | |
Underwriting discount(2)
|
| | | | 0.350% | | | | | C$ | 1,750,000 | | |
Proceeds, before expenses, to us(1)
|
| | | | 99.583% | | | | | C$ | 497,915,000 | | |
| CIBC Capital Markets | | |
TD Securities
|
| |
Scotiabank
|
|
|
J.P. Morgan
|
| |
BofA Securities
|
| |
Mizuho
|
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| | | | | S-iii | | | |
| | | | | S-1 | | | |
| | | | | S-2 | | | |
| | | | | S-5 | | | |
| | | | | S-9 | | | |
| | | | | S-14 | | | |
| | | | | S-15 | | | |
| | | | | S-16 | | | |
| | | | | S-31 | | | |
| | | | | S-35 | | | |
| | | | | S-36 | | | |
| | | | | S-38 | | | |
| | | | | S-44 | | | |
| | | | | S-45 | | | |
| | | | | S-46 | | | |
| | | | | S-47 | | | |
| | | | | S-48 | | |
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Agent
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Three Months Ended March 31,
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Year Ended December 31,
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2024
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2023
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2023
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2022
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2021
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2020
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(unaudited)
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(audited)
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(in thousands of U.S. dollars)
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STATEMENT OF OPERATIONS
DATA: |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Revenues
|
| | | $ | 2,072,653 | | | | | $ | 1,900,503 | | | | | $ | 8,021,951 | | | | | $ | 7,211,859 | | | | | $ | 6,151,361 | | | | | $ | 5,445,990 | | |
Operating expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of operations
|
| | | | 1,221,783 | | | | | | 1,146,941 | | | | | | 4,744,513 | | | | | | 4,336,012 | | | | | | 3,654,074 | | | | | | 3,276,808 | | |
Selling, general and administrative
|
| | | | 220,735 | | | | | | 193,667 | | | | | | 799,119 | | | | | | 696,467 | | | | | | 612,337 | | | | | | 537,632 | | |
Depreciation
|
| | | | 222,691 | | | | | | 204,059 | | | | | | 845,638 | | | | | | 763,285 | | | | | | 673,730 | | | | | | 621,102 | | |
Amortization of intangibles
|
| | | | 40,290 | | | | | | 39,282 | | | | | | 157,573 | | | | | | 155,675 | | | | | | 139,279 | | | | | | 131,302 | | |
Impairments and other operating
items |
| | | | 354 | | | | | | 1,865 | | | | | | 238,796 | | | | | | 18,230 | | | | | | 32,316 | | | | | | 466,718 | | |
Operating income
|
| | | | 366,800 | | | | | | 314,689 | | | | | | 1,236,312 | | | | | | 1,242,190 | | | | | | 1,039,625 | | | | | | 412,428 | | |
Interest expense
|
| | | | (78,488) | | | | | | (68,353) | | | | | | (274,642) | | | | | | (202,331) | | | | | | (162,796) | | | | | | (162,375) | | |
Interest income
|
| | | | 2,051 | | | | | | 2,715 | | | | | | 9,350 | | | | | | 5,950 | | | | | | 2,916 | | | | | | 5,253 | | |
Other income (expense), net
|
| | | | (1,823) | | | | | | 3,174 | | | | | | 12,481 | | | | | | 3,154 | | | | | | 6,285 | | | | | | 1,392 | | |
Loss on early extinguishment of debt
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (115,288) | | | | | | — | | |
Income before income tax provision
|
| | | | 288,540 | | | | | | 252,225 | | | | | | 983,501 | | | | | | 1,048,963 | | | | | | 770,742 | | | | | | 253,914 | | |
Income tax provision
|
| | | | (59,413) | | | | | | (54,389) | | | | | | (220,675) | | | | | | (212,962) | | | | | | (152,253) | | | | | | (49,922) | | |
Net income
|
| | | | 229,127 | | | | | | 197,836 | | | | | | 762,826 | | | | | | 836,001 | | | | | | 618,489 | | | | | | 203,992 | | |
Plus (less): Net loss (income) attributable to noncontrolling interests
|
| | | | 927 | | | | | | (23) | | | | | | (26) | | | | | | (339) | | | | | | (442) | | | | | | 685 | | |
Net income (loss) attributable to Waste Connections
|
| | | $ | 230,054 | | | | | $ | 197,813 | | | | | $ | 762,800 | | | | | $ | 835,662 | | | | | $ | 618,047 | | | | | $ | 204,677 | | |
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As of March 31,
|
| |
As of December 31,
|
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2024
|
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2023
|
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2023
|
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2022
|
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2021
|
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2020
|
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| | |
(unaudited)
|
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(audited)
|
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(in thousands of U.S. dollars)
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BALANCE SHEET DATA: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash and equivalents
|
| | | $ | 111,985 | | | | | $ | 133,860 | | | | | $ | 78,399 | | | | | $ | 78,637 | | | | | $ | 147,441 | | | | | $ | 617,294 | | |
Working capital surplus (deficit)
|
| | | | (414,487) | | | | | | (248,926) | | | | | | (546,147) | | | | | | (394,998) | | | | | | (199,969) | | | | | | 379,618 | | |
Property and equipment,
net |
| | | | 7,827,304 | | | | | | 6,956,620 | | | | | | 7,228,331 | | | | | | 6,950,915 | | | | | | 5,721,949 | | | | | | 5,284,506 | | |
Total assets
|
| | | | 19,082,660 | | | | | | 17,227,094 | | | | | | 17,915,876 | | | | | | 17,134,603 | | | | | | 14,699,924 | | | | | | 13,992,364 | | |
Long-term debt and notes payable
|
| | | | 7,795,191 | | | | | | 6,921,839 | | | | | | 6,724,771 | | | | | | 6,890,149 | | | | | | 5,040,500 | | | | | | 4,708,678 | | |
Total equity
|
| | | | 7,790,960 | | | | | | 7,238,964 | | | | | | 7,697,781 | | | | | | 7,113,644 | | | | | | 6,993,545 | | | | | | 6,863,438 | | |
| | |
Three Months Ended March 31,
|
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Year Ended December 31,
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2024
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2023
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2023
|
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2022
|
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2021
|
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2020
|
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(unaudited)
(in thousands of U.S. dollars) |
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OTHER FINANCIAL DATA: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Adjusted EBITDA(a)
|
| | | $ | 650,673 | | | | | $ | 566,869 | | | | | $ | 2,522,956 | | | | | $ | 2,220,652 | | | | | $ | 1,919,158 | | | | | $ | 1,661,984 | | |
Adjusted Free Cash Flow(a)
|
| | | $ | 324,793 | | | | | $ | 273,981 | | | | | $ | 1,224,132 | | | | | $ | 1,164,844 | | | | | $ | 1,009,598 | | | | | $ | 841,898 | | |
| | |
Three Months Ended March 31,
|
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Year Ended December 31,
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2024
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2023
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2023
|
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2022
|
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2021
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2020
|
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(in thousands of U.S. dollars)
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Net income attributable to Waste
Connections |
| | | $ | 230,054 | | | | | $ | 197,813 | | | | | $ | 762,800 | | | | | $ | 835,662 | | | | | $ | 618,047 | | | | | $ | 204,677 | | |
Plus (less): Net income (loss)
attributable to noncontrolling interests |
| | | | (927) | | | | | | 23 | | | | | | 26 | | | | | | 339 | | | | | | 442 | | | | | | (685) | | |
Plus: Income tax provision
|
| | | | 59,413 | | | | | | 54,389 | | | | | | 220,675 | | | | | | 212,962 | | | | | | 152,253 | | | | | | 49,922 | | |
Plus: Interest expense
|
| | | | 78,488 | | | | | | 68,353 | | | | | | 274,642 | | | | | | 202,331 | | | | | | 162,796 | | | | | | 162,375 | | |
Less: Interest income
|
| | | | (2,051) | | | | | | (2,715) | | | | | | (9,350) | | | | | | (5,950) | | | | | | (2,916) | | | | | | (5,253) | | |
Plus: Depreciation and amortization
|
| | | | 262,981 | | | | | | 243,341 | | | | | | 1,003,211 | | | | | | 918,960 | | | | | | 813,009 | | | | | | 752,404 | | |
Plus: Closure and post-closure accretion
|
| | | | 9,405 | | | | | | 4,520 | | | | | | 19,605 | | | | | | 16,253 | | | | | | 14,497 | | | | | | 15,095 | | |
Plus: Impairments and other operating items
|
| | | | 354 | | | | | | 1,865 | | | | | | 238,796 | | | | | | 18,230 | | | | | | 32,316 | | | | | | 466,777 | | |
Plus (less): Other expense (income), net
|
| | | | 1,823 | | | | | | (3,174) | | | | | | (12,481) | | | | | | (3,154) | | | | | | (6,285) | | | | | | 1,392 | | |
Plus: Loss on early extinguishment of debt
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 115,288 | | | | | | — | | |
Adjustments: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Plus: Transaction-related expenses(1)
|
| | | | 9,847 | | | | | | 2,081 | | | | | | 10,653 | | | | | | 24,933 | | | | | | 11,318 | | | | | | 9,803 | | |
Plus: Fair value changes to certain equity awards(2)
|
| | | | 1,286 | | | | | | 373 | | | | | | (1,726) | | | | | | 86 | | | | | | 8,393 | | | | | | 5,536 | | |
Plus: Executive separation
costs(3) |
| | | | — | | | | | | — | | | | | | 16,105 | | | | | | — | | | | | | — | | | | | | — | | |
Adjusted EBITDA
|
| | | $ | 650,673 | | | | | $ | 566,869 | | | | | $ | 2,522,956 | | | | | $ | 2,220,652 | | | | | $ | 1,919,158 | | | | | $ | 1,673,554 | | |
Adjusted EBITDA as a % of Revenues
|
| | | | 31.4% | | | | | | 29.8% | | | | | | 31.5% | | | | | | 30.8% | | | | | | 31.2% | | | | | | 30.7% | | |
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Three Months Ended
March 31, |
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Years Ended December 31,
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2024
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2023
|
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2023
|
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2022
|
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2021
|
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2020
|
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(in thousands of U.S. dollars)
|
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Net cash provided by operating activities
|
| | | $ | 490,309 | | | | | $ | 442,358 | | | | | $ | 2,126,817 | | | | | $ | 2,022,492 | | | | | $ | 1,698,229 | | | | | $ | 1,408,521 | | |
Plus (less): Change in book
overdraft |
| | | | (271) | | | | | | 5,421 | | | | | | (790) | | | | | | (1,076) | | | | | | (367) | | | | | | 1,096 | | |
Plus: Proceeds from disposal of
assets |
| | | | 1,085 | | | | | | 1,260 | | | | | | 31,581 | | | | | | 30,676 | | | | | | 42,768 | | | | | | 19,084 | | |
Less: Capital expenditures for property
and equipment |
| | | | (169,951) | | | | | | (175,786) | | | | | | (934,000) | | | | | | (912,677) | | | | | | (744,315) | | | | | | (597,053) | | |
Adjustments: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Payment of contingent consideration recorded in earnings(1)
|
| | | | — | | | | | | — | | | | | | — | | | | | | 2,982 | | | | | | 520 | | | | | | 10,371 | | |
Cash received for divestitures(2)
|
| | | | — | | | | | | — | | | | | | (6,194) | | | | | | (5,671) | | | | | | (17,118) | | | | | | (10,673) | | |
Transaction-related items(3)
|
| | | | 4,976 | | | | | | 1,249 | | | | | | 5,519 | | | | | | 30,825 | | | | | | 30,771 | | | | | | 9,803 | | |
Executive Separation Costs(4)
|
| | | | — | | | | | | — | | | | | | 1,686 | | | | | | — | | | | | | — | | | | | | — | | |
Pre-existing Progressive Waste share-based grants(5)
|
| | | | 14 | | | | | | (2) | | | | | | 1,285 | | | | | | 286 | | | | | | 397 | | | | | | 5,770 | | |
Tax effect(6)
|
| | | | (1,369) | | | | | | (519) | | | | | | (1,772) | | | | | | (2,993) | | | | | | (1,287) | | | | | | (5,021) | | |
Adjusted Free Cash Flow
|
| | | $ | 324,793 | | | | | $ | 273,981 | | | | | $ | 1,224,132 | | | | | $ | 1,164,844 | | | | | $ | 1,009,598 | | | | | $ | 841,898 | | |
Adjusted Free Cash Flow as a % of Adjusted EBITDA
|
| | | | 49.9% | | | | | | 48.3% | | | | | | 48.5% | | | | | | 52.5% | | | | | | 52.6% | | | | | | 50.3% | | |
| | |
As of March 31, 2024
|
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| | |
Actual
|
| |
As Adjusted
|
| ||||||
| | |
(in thousands of U.S. dollars)
|
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Cash and equivalents
|
| | | $ | 111,985 | | | | | $ | 108,492 | | |
Long-term debt and notes payable: | | | | | | | | | | | | | |
Revolving Credit Agreement(1)
|
| | | $ | 2,237,794 | | | | | $ | 1,874,554 | | |
Existing senior notes
|
| | | | 5,600,000 | | | | | | 5,600,000 | | |
Notes offered hereby(2)
|
| | | | — | | | | | | 363,240 | | |
Notes payable to sellers and other third parties
|
| | | | 46,416 | | | | | | 46,416 | | |
Total long-term debt and notes payable
|
| | | $ | 7,884,210 | | | | | $ | 7,884,210 | | |
Equity: | | | | | | | | | | | | | |
Common shares
|
| | | $ | 3,279,130 | | | | | $ | 3,279,130 | | |
Additional paid-in-capital
|
| | | | 272,450 | | | | | | 272,450 | | |
Accumulated other comprehensive income
|
| | | | (62,836) | | | | | | (62,836) | | |
Retained earnings
|
| | | | 4,298,171 | | | | | | 4,298,171 | | |
Total Waste Connections’ equity
|
| | | | 7,786,915 | | | | | | 7,786,915 | | |
Noncontrolling interest in subsidiaries
|
| | | | 4,045 | | | | | | 4,045 | | |
Total equity
|
| | | $ | 7,790,960 | | | | | $ | 7,790,960 | | |
Total capitalization
|
| | | $ | 15,675,170 | | | | | $ | 15,675,170 | | |
Underwriter
|
| |
Principal
amount of Notes |
| ||||
CIBC World Markets Inc.
|
| | | C$ | 110,000,000 | | | |
TD Securities Inc.
|
| | | | 110,000,000 | | | |
Scotia Capital Inc.
|
| | | | 110,000,000 | | | |
J.P. Morgan Securities Canada Inc.
|
| | | | 60,000,000 | | | |
Merrill Lynch Canada Inc.
|
| | | | 60,000,000 | | | |
Mizuho Securities Canada Inc.
|
| | | | 50,000,000 | | | |
Total
|
| | | C$ | 500,000,000 | | | |
| | |
Paid by us
|
| |||
Per note
|
| | | | 0.350% | | |
Attn: Investor Relations
3 Waterway Square Place, Suite 110
The Woodlands, TX 77380
(832) 442-2200
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Attn: Investor Relations
3 Waterway Square Place, Suite 110
The Woodlands, TX 77380
(832) 442-2200
| CIBC Capital Markets | | |
TD Securities
|
| |
Scotiabank
|
|
| J.P. Morgan | | |
BofA Securities
|
| |
Mizuho
|
|