Waste Connections posts 24 pct rise in 3Q profit

Waste Connections reports 24 pct rise in 3rd-quarter earnings on acquired assets, cost cuts

• On 5:46 pm EDT, Monday October 26, 2009

FOLSOM, Calif. (AP) -- Trash hauler Waste Connections Inc. said Monday its third-quarter profit rose 24 percent, buoyed by acquired assets, job cuts and lower expenses and wages.

Net income rose to $34.2 million, or 43 cents per share, for the three months ended in September. That compares with a profit of $27.6 million, or 40 cents per share, in the year-earlier period.

The latest quarterly results are based on 79.8 million shares, while the year-earlier period is based on 68.5 million shares.

Revenue climbed nearly 16 percent to $316 million from $272.7 million.

Analysts polled by Thomson Reuters, on average, expected a profit of 41 cents per share on revenue of $314.2 million. Wall Street estimates typically exclude one-time items.

Waste Connections said the quarter "fully reflected" the impact of assets acquired from another trash hauler -- Republic Services -- staff cuts earlier in the year and continuing lower wages and expenses.

Also Monday, the company said it had completed a private sale of notes under its existing master note purchase agreement with certain institutional investors.

Waste Connections sold $175 million aggregate principal amount of senior unsecured notes at a fixed interest rate of 5.25 percent annually, with interest payable semiannually on May 1 and Nov. 1 starting next year. The principal is payable at the maturity of the notes on Nov. 1, 2019.

Proceeds will be used to repay debt under a senior unsecured revolving credit facility and for general corporate purposes.

Waste Connections shares rose 42 cents to close at $31.28.

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