(MENAFNEditorial) PONTE VEDRA, Fla., Feb. 22, 2018 /PRNewswire/ --Advanced Disposal Services, Inc. (NYSE: ADSW), (d/b/a Advanced Disposal) announced today revenue for the three months ended December 31, 2017 of $384.4 million versus $352.0 million in the same period of the prior year. Net income during fourth quarter 2017 was $42.0 million, or $0.47 per diluted share, versus a net loss of $20.1 million, or $0.24 per diluted share in fourth quarter 2016. Excluding certain gains and expenses, adjusted net income in fourth quarter 2017 was $11.2 million and adjusted diluted earnings per share was $0.13.
"One of our key areas of focus is cash flow generation, and we are pleased that for 2017 Advanced Disposal achieved a 30% increase in cash from operations and 40% increase in adjusted free cash flow year-over-year," said Richard Burke, CEO. "We also are seeing strong top-line growth, which should position us well as we move into 2018."
Fourth Quarter and Full Year Highlights
Fourth quarter revenue of $384.4 million was up 9.2% over the prior year Achieved fourth quarter average yield of 1.1% and organic volume growth of 2.9% led by strong disposal volume Year-over-year growth from acquisitions was 5.5% in the fourth quarter due to the first quarter purchase of CGS Services, Inc. and thirteen tuck-in acquisitions completed during 2017 Net income for the fourth quarter was $42.0 million or $0.47 per diluted share aided in part by a $40.4 million tax impact from the Tax Cuts and Jobs Act Adjusted EBITDA of $108.8 million for the fourth quarter up $1.1 million year-over-year despite impacts from healthcare costs and net fuel costs that were a $3.4 million headwind Adjusted net income was $11.2 million for the fourth quarter and adjusted diluted earnings per share was $0.13 Full year revenue of $1,507.6 million was up 7.3% over the prior year Net income for the full year was $38.3 million and adjusted EBITDA grew $7 million to $418.1 million Became a majority independent Board of Directors and all committees are now comprised of independent directors Received a credit rating upgrade by Standard & Poor's Reduced the interest rate on the company's $1.46 billion of Term Loan B debt by 50 basis points to LIBOR+225 basis points Full year cash provided by operating activities was $308.8 million, an increase of 30% Full year adjusted free cash flow increased 40% to $131.8 million Fiscal Year 2018 Guidance
Advanced Disposal's guidance is based on current economic conditions and does not assume any significant changes in the overall economy during 2018. Please refer to the Special Note Regarding Forward-Looking Statements section of this press release.
Revenue is estimated to be between $1,545 million and $1,565 million. This includes average yield of 2.1% to 2.8%, organic volume of 0.4% to 1.0%, acquisition rollover revenue of 1.3%, and an estimated (1.4%) impact from lower revenue from the sale of commodities and the adoption of the new revenue recognition standard. Adjusted EBITDA is estimated to be between $426 million and $436 million. Capital expenditures are estimated to be between $184 million and $194 million. Adjusted free cash flow is estimated to be between $134 million and $144 million. Advanced Disposal will conduct a quarterly earnings conference call on February 23, 2018 at 10:00 a.m. EST. The call can be accessed by dialing (866) 478-7805 domestically or (832) 445-1679 internationally and asking for conference ID 3099638 or the Advanced Disposal Q4 2017 earnings call. This call will be recorded and available via replay approximately two hours after the completion of the earnings call for thirty days. You may access the recording by dialing (855) 859-2056 or through the link on the investor relations page of our website at .
The calculation of free cash flow and adjusted free cash flow, as well as details of charges and other expenses that are excluded from EBITDA and net income (loss) in arriving at adjusted EBITDA and adjusted net income, are contained in the "Reconciliation of Certain Non-GAAP Measures" section of this press release.
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