Waste Connections Inc

Previous wording

We are an integrated solid waste services company that provides non-hazardous waste collection, transfer and disposal services, including by rail, along with resource recovery primarily through recycling and renewable fuels generation, in mostly exclusive and secondary markets across 46 states in the U.S. and six provinces in Canada. Waste Connections also provides non-hazardous oil and natural gas exploration and production (“E&P”) waste treatment, recovery and disposal

Current wording

We are an integrated solid waste services company that provides non-hazardous waste collection, transfer and disposal services, including by rail, along with resource recovery primarily through recycling and renewable fuels generation, in mostly exclusive and secondary markets across 46 states in the U.S. and six provinces in Canada. Waste Connections also provides non-hazardous oil and natural gas exploration and production (“E&P”) waste treatment, recovery and disposal services in several basins across the U.S. and Canada, as well as intermodal services for the movement of cargo and solid waste containers in the Pacific Northwest.

Previous wording

Environmental, organizational and financial sustainability initiatives have been key components of our success since we were founded in 1997. We continue to grow and expand these efforts and our disclosure regarding progress towards their achievement as our industry and technology continue to evolve. To that end, we have committed $500 million to the advancement of long-term, aspirational ESG targets, which have been incorporated into executive compensation metrics. Our investments primarily focus on reducing emissions, increasing resource recovery of both recyclable commodities and clean energy fuels, reducing reliance on off-site disposal for landfill leachate, further improving safety through reduced incidents and enhancing employee engagement through improved voluntary turnover and Servant Leadership scores. Our 2023 Sustainability Report can be found at www.wasteconnections.com/sustainability but does not constitute a part of, and is not incorporated by reference into, this Quarterly Report on Form 10-Q.

Current wording

Environmental, organizational and financial sustainability initiatives have been key components of our success since we were founded in 1997. We continue to grow and expand these efforts and our disclosure regarding progress towards their achievement as our industry and technology continue to evolve. To that end, we have committed $500 million to the advancement of long-term, aspirational ESG targets, which have been incorporated into executive compensation metrics. Our investments primarily focus on reducing emissions and emissions intensity, increasing resource recovery of both recyclable commodities and clean energy fuels, reducing reliance on off-site disposal for landfill leachate, further improving safety through reduced incidents and enhancing employee engagement through improved voluntary turnover and Servant Leadership scores. Our 2023 Sustainability Report can be found at www.wasteconnections.com/sustainability but does not constitute a part of, and is not incorporated by reference into, this Quarterly Report on Form 10-Q.

Previous wording

RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED MARCH 31, 2024 AND 2023

Current wording

RESULTS OF OPERATIONS FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2024 AND 2023

Previous wording

Acquisitions closed during, or subsequent to, the three months ended March 31, 2023, increased revenues by $80.6 million for the three months ended March 31, 2024.

Current wording

Acquisitions closed during, or subsequent to, the three and six months ended June 30, 2023, increased revenues by $123.4 million and $204.0 million, respectively, for the three and six months ended June 30, 2024.

Previous wording

Operations that were divested during, or subsequent to, the three months ended March 31, 2023, decreased revenues by $2.6 million for the three months ended March 31, 2024.

Current wording

Operations that were divested during, or subsequent to, the three and six months ended June 30, 2023, decreased revenues by $2.6 million and $5.3 million, respectively, for the three and six months ended June 30, 2024.

Previous wording

During the three months ended March 31, 2024, the net increase in prices charged to our customers at our existing operations was $128.5 million, consisting of $140.6 million of core price increases and decreases in surcharges of $12.1 million.

Current wording

During the three months ended June 30, 2024, the net increase in prices charged to our customers at our existing operations was $131.2 million, consisting of $135.7 million of core price increases and decreases in surcharges of $4.5 million. During the six months ended June 30, 2024, the net increase in prices charged to our customers at our existing operations was $259.6 million, consisting of $276.3 million of core price increases and decreases in surcharges of $16.7 million.

Previous wording

During the three months ended March 31, 2024, we recognized volume losses totaling $69.6 million, resulting from lower residential collection volumes due primarily to the purposeful shedding of certain low-margin municipal contracts in our Eastern, Canada and Southern segments, lower commercial revenues and a decrease in roll off and post collection volumes in part due to the weather impacting operations in certain geographic markets.

Current wording

During the three months ended June 30, 2024, we recognized volume losses totaling $54.2 million, resulting from lower residential collection volumes due primarily to the purposeful shedding of certain low-margin municipal contracts in our Eastern, Canada and Southern segments, lower commercial revenues and a decrease in post collection volumes. During the six months ended June 30, 2024, we recognized volume losses totaling $123.8 million, resulting from lower residential collection volumes due primarily to the purposeful shedding of certain low-margin municipal contracts in our Eastern, Canada and Southern segments, lower commercial revenues and a decrease in roll off and post collection volumes in part due to the weather impacting operations in certain geographic markets.

Previous wording

E&P waste revenues at facilities owned during the three months ended March 31, 2024 and 2023 increased $8.6 million, due to increases in overall demand for our E&P waste services as a result of increases in drilling and production activity levels in certain basins.

Current wording

E&P waste revenues at facilities owned during the three and six months ended June 30, 2024 and 2023 increased $9.0 million and $17.6 million, respectively, due to increases in overall demand for our E&P waste services as a result of increases in drilling and production activity levels in certain basins.

Previous wording

Revenues from sales of recyclable commodities at facilities owned during the three months ended March 31, 2024 and 2023 increased $15.3 million. The increase is primarily attributable to higher average commodity pricing for old corrugated cardboard, plastics and other paper products as compared to the prior period.

Current wording

Revenues from sales of recyclable commodities at facilities owned during the three and six months ended June 30, 2024 and 2023 increased $15.2 million and $30.6 million, respectively. The increases are primarily attributable to higher average commodity pricing for old corrugated cardboard and other paper products as compared to the prior periods.

Previous wording

An increase in the average Canadian dollar to U.S. dollar currency exchange rate resulted in an increase in revenues of $0.4 million for the three months ended March 31, 2024. The average Canadian dollar to U.S. dollar exchange rates on our Canadian revenues were 0.7412 and 0.7397 for the three months ended March 31, 2024 and 2023, respectively.

Current wording

A decrease in the average Canadian dollar to U.S. dollar currency exchange rate resulted in a decrease in revenues of $4.6 million and $4.2 million for the three and six months ended June 30, 2024, respectively. The average Canadian dollar to U.S. dollar exchange rates on our Canadian revenues were 0.7308 and 0.7447 for the three months ended June 30, 2024 and 2023, respectively. The average Canadian dollar to U.S. dollar exchange rates on our Canadian revenues were 0.7356 and 0.7423 for the six months ended June 30, 2024 and 2023, respectively.

Previous wording

Other revenues increased $11.0 million during the three months ended March 31, 2024, due primarily to an $11.7 million increase in landfill gas revenues on higher values for renewable energy credits and higher landfill gas volumes and

Current wording

Other revenues increased $9.7 million during the three months ended June 30, 2024, due primarily to a $9.7 million increase in landfill gas revenues on higher values for renewable energy credits and higher landfill gas volumes and a $0.6 million increase in other non-core revenue sources, partially offset by a $0.6 million decrease in intermodal revenues. Other revenues increased $20.7 million during the six months ended June 30, 2024, due primarily to a $21.4 million increase in landfill gas revenues on higher values for renewable energy credits and higher landfill gas volumes and a $1.5 million increase in other non-core revenue sources, partially offset by a $2.2 million decrease in intermodal revenues.

Previous wording

Cost of Operations. Total cost of operations increased $74.8 million, or 6.5%, to $1.222 billion for the three months ended March 31, 2024, from $1.147 billion for the three months ended March 31, 2023. The increase was primarily the result of $39.4 million of additional operating costs from acquisitions closed during, or subsequent to, the three months ended March 31, 2023, an increase in operating costs at our existing operations of $36.5 million, assuming foreign currency parity and an increase in operating costs of $0.3 million resulting from a lower average foreign currency exchange rate in effect during the current period, partially offset by a decrease of $1.4 million from operations divested during, or subsequent to, the three months ended March 31, 2023.

Current wording

Cost of Operations. Total cost of operations increased $103.7 million, or 8.7%, to $1.301 billion for the three months ended June 30, 2024, from $1.197 billion for the three months ended June 30, 2023. The increase was primarily the result of $59.2 million of additional operating costs from acquisitions closed during, or subsequent to, the three months ended June 30, 2023 and an increase in operating costs at our existing operations of $48.4 million, assuming foreign currency parity, partially offset by a decrease in operating costs of $2.4 million resulting from a lower average foreign currency exchange rate in effect during the current period and a decrease of $1.5 million from operations divested during, or subsequent to, the three months ended June 30, 2023.

Previous wording

The increase in operating costs of $36.5 million, assuming foreign currency parity, at our existing operations for the three months ended March 31, 2024, consisted of higher labor and recurring incentive compensation expenses of $16.1 million, an increase in risk management expenses of $15.8 million due to higher claim and premium costs, an increase in post-closure liability interest accretion expense of $4.3 million, an increase in benefits costs of $3.3 million, an increase in disposal costs of $3.1 million, an increase in leachate costs of $3.0 million, an increase in truck, container, equipment and facility maintenance and repair expenses of $2.2 million, an increase in taxes on revenues of $1.9 million as the result of increased revenues and a net increase of other expenses of $2.2 million, partially offset by a decrease in fuel expense of $5.4 million due to lower diesel and natural gas prices, a decrease in subcontract expense of $3.7 million, a decrease in third-party trucking and transportation expenses of $3.2 million due to lower transfer station and intermodal volumes and a decrease in fees paid for the processing of recyclable materials of $3.1 million primarily as a result of higher commodity values.

Current wording

The increase in operating costs of $85.2 million, assuming foreign currency parity, at our existing operations for the six months ended June 30, 2024, consisted of higher labor and recurring incentive compensation expenses of $33.7 million, an increase in risk management expenses of $20.8 million due to higher claim and premium costs, an increase in disposal costs of $10.7 million, an increase in benefits costs of $6.9 million, an increase in truck, container, equipment and facility maintenance and repair expenses of $6.9 million, an increase in leachate costs of $6.0 million, an increase in post-closure liability interest accretion expense of $5.2 million, an increase in taxes on revenues of $5.2 million as the result of increased revenues, an increase in facility and equipment rental costs $1.9 million, an increase in property taxes of $1.8 million and a net increase of other expenses of $6.0 million, partially offset by a decrease in subcontract expense of $7.8 million, a decrease in fuel expense of $6.6 million due to lower diesel and natural gas prices and a decrease in fees paid for the processing of recyclable materials of $5.5 million primarily as a result of higher commodity values.

Previous wording

Cost of operations as a percentage of revenues decreased 1.3 percentage points to 59.0% for the three months ended March 31, 2024, from 60.3% for the three months ended March 31, 2023. The decrease as a percentage of revenues was primarily driven by the impact of price-led revenue growth, a 0.5 percentage point decrease in third-party trucking and transportation expenses, a 0.5 percentage point decrease in fuel costs due to lower diesel and natural gas prices, a 0.3 percentage point decrease in truck, container, equipment and facility maintenance and repair expenses, a 0.3 percentage point decrease in disposal costs, a 0.2 percentage point decrease in subcontract costs and a 0.2 percentage point decrease from all other net changes, partially offset by a 0.7 percentage point increase in risk management expenses.

Current wording

Cost of operations as a percentage of revenues decreased 1.4 percentage points to 58.4% for the six months ended June 30, 2024, from 59.8% for the six months ended June 30, 2023. The decrease as a percentage of revenues was primarily driven by the impact of price-led revenue growth, contributions from an increase in higher landfill gas sales, a 0.4 percentage point decrease in fuel costs due to lower diesel and natural gas prices, a 0.3 percentage point decrease in third-party trucking and transportation expenses, a 0.3 percentage point decrease due to lower labor costs, a 0.3 percentage point decrease in truck, container, equipment and facility maintenance and repair expenses, a 0.2 percentage point decrease due to the impact of acquisitions having lower operating costs as a percentage of revenue as compared to existing operations, a 0.2 percentage point decrease in disposal costs and a 0.2 percentage point decrease in subcontract costs, partially offset by a 0.4 percentage point increase in risk management expenses and a 0.1 percentage point increase from all other net changes.

Previous wording

The increase in SG&A expenses at our existing operations of $21.8 million, assuming foreign currency parity, for the three months ended March 31, 2024 was comprised of an increase in direct acquisition expenses of $7.8 million due to an increase in acquisition activity in the current period, an increase in incentive compensation expense of $7.4 million, an increase in administrative payroll expenses of $2.6 million, a collective increase in travel, meetings and training expenses of $2.1 million, an increase in bad debt costs of $1.2 million associated with increased revenues, an increase in software license fees of $1.0 million and $3.2 million of other net expense increases, partially offset by a decrease in professional fees of $2.0 million and a decrease in equity-based compensation expenses of $1.5 million associated with our annual recurring grants of restricted share units to our personnel.

Current wording

The increase in SG&A expenses at our existing operations of $26.4 million, assuming foreign currency parity, for the six months ended June 30, 2024 was comprised of an increase in direct acquisition expenses of $13.2 million due to an increase in acquisition activity in the current period, an increase in incentive compensation expense of $8.2 million, an increase in administrative payroll expenses of $5.9 million, a collective increase in travel, meetings and training expenses of $5.5 million, an increase in professional fees of $2.0 million, an increase in bad debt costs of $1.3 million associated with increased revenues, an increase in software license fees of $1.3 million and $4.1 million of other net expense increases, partially offset by a decrease in executive separation costs of $15.1 million.

Previous wording

SG&A expenses as a percentage of revenues increased 0.5 percentage points to 10.7% for the three months ended March 31, 2024, from 10.2% for the three months ended March 31, 2023. The increase as a percentage of revenues was primarily attributable to a 0.4 percentage point increase in direct acquisition expenses due to an increase in acquisition activity and a 0.3 percentage point increase in incentive compensation costs, partially offset by a 0.2 percentage point decrease in accrued equity compensation expense.

Current wording

SG&A expenses as a percentage of revenues decreased 0.5 percentage points to 10.2% for the three months ended June 30, 2024, from 10.7% for the three months ended June 30, 2023. The decrease as a percentage of revenues was primarily attributable to a 0.7 percentage point decrease in executive separation costs and a 0.1 percentage point decrease due to the impact of acquisitions having lower SG&A costs as a percentage of revenue as compared to existing operations, partially offset by a 0.2 percentage point increase in direct acquisition expenses due to an increase in acquisition activity and a 0.1 percentage point increase in professional fees.

Previous wording

increase in depreciation and depletion expense of $13.4 million from acquisitions closed during, or subsequent to, the three months ended March 31, 2023 and an increase in depreciation expense of $6.1 million from the impact of additions to our fleet and equipment purchased to support our existing operations, partially offset by a decrease of $0.8 million in depletion expense due to lower landfill volumes in certain markets.

Current wording

Depreciation expense increased $46.5 million, or 11.2%, to $463.9 million for the six months ended June 30, 2024, from $417.4 million for the six months ended June 30, 2023. The increase was comprised of an increase in depreciation and depletion expense of $33.0 million from acquisitions closed during, or subsequent to, the six months ended June 30, 2023 and an increase in depreciation expense of $14.1 million from the impact of additions to our fleet and equipment purchased to support our existing operations, partially offset by a decrease of $0.5 million resulting from a lower average foreign currency exchange rate in effect during the current period and a decrease of $0.1 million in depletion expense due to lower landfill volumes in certain markets.

Previous wording

Depreciation expense as a percentage of revenues remained flat at 10.7% for the three months ended March 31, 2024 and March 31, 2023. As compared to prior year, expenses as a percentage of revenues decreased due to the impact of price driven revenue increases in our solid waste services, offset by increases as a percentage of revenue from acquisitions closed during, or subsequent to, the three months ended March 31, 2023 having higher depreciation expense as a percentage of revenue than our company average.

Current wording

Depreciation expense as a percentage of revenues increased 0.1 percentage points to 10.7% for the three months ended June 30, 2024 from 10.6% for the three months ended June 30, 2023. Depreciation expense as a percentage of revenues increased 0.1 percentage points to 10.7% for the six months ended June 30, 2024, from 10.6% for the six months ended June 30, 2023. For both comparative periods, expenses as a percentage of revenues increased due to acquisitions closed during, or subsequent to, the three and six months ended June 30, 2023 having higher depreciation expense as a percentage of revenue than our company average, partially offset by the impact of price driven revenue increases in our solid waste services and decreased depletion expenses as a result of lower landfill volumes.

Previous wording

Amortization of Intangibles. Amortization of intangibles expense increased $1.0 million, or 2.6%, to $40.3 million for the three months ended March 31, 2024, from $39.3 million for the three months ended March 31, 2023. The increase was the result of $5.8 million from intangible assets acquired in acquisitions closed during, or subsequent to, the three months ended March 31, 2023, partially offset by a decrease of $4.8 million from certain intangible assets becoming fully amortized subsequent to March 31, 2023.

Current wording

Amortization of Intangibles. Amortization of intangibles expense increased $5.0 million, or 13.0%, to $44.1 million for the three months ended June 30, 2024, from $39.1 million for the three months ended June 30, 2023. The increase was the result of $8.8 million from intangible assets acquired in acquisitions closed during, or subsequent to, the three months ended June 30, 2023, partially offset by a decrease of $3.8 million from certain intangible assets becoming fully amortized subsequent to June 30, 2023.

Previous wording

Impairments and Other Operating Items. Impairments and other operating items decreased $1.5 million, to net losses totaling $0.4 million for the three months ended March 31, 2024, from net losses totaling $1.9 million for the three months ended March 31, 2023.

Current wording

Impairments and Other Operating Items. Impairments and other operating items decreased $2.7 million, to net losses totaling $8.2 million for the three months ended June 30, 2024, from net losses totaling $10.9 million for the three months ended June 30, 2023.

Previous wording

Operating Income. Operating income increased $52.1 million, or 16.6%, to $366.8 million for the three months ended March 31, 2024, from $314.7 million for the three months ended March 31, 2023.

Current wording

Operating Income. Operating income increased $80.6 million, or 23.4%, to $424.7 million for the three months ended June 30, 2024, from $344.1 million for the three months ended June 30, 2023.

Previous wording

The increase in our operating income for the three months ended March 31, 2024 was due primarily to price increases for our solid waste services, operating income generated from acquisitions closed during, or subsequent to, the three months ended March 31, 2023, an increase in earnings at our E&P waste operations, operating income contributions from increased renewable energy credits associated with the generation of landfill gas and contributions from higher recyclable commodity pricing, partially offset by an increase in risk management costs, an increase in direct acquisition expenses associated with increased acquisition activity as compared to the prior year period and increased incentive compensation expense.

Current wording

The increase in our operating income for the six months ended June 30, 2024 was due primarily to price increases for our solid waste services, operating income generated from acquisitions closed during, or subsequent to, the six months ended June 30, 2023, an increase in earnings at our E&P waste operations, operating income contributions from increased renewable energy credits associated with the generation of landfill gas, contributions from higher recyclable commodity pricing and lower executive separation costs, partially offset by an increase in risk management costs, an increase in direct acquisition expenses associated with increased acquisition activity as compared to the prior year period and increased incentive compensation expense.

Previous wording

Operating income as a percentage of revenues increased 1.1 percentage points to 17.7% for the three months ended March 31, 2024, from 16.6% for the three months ended March 31, 2023. The increase as a percentage of revenues was comprised of a 1.3 percentage point decrease in our costs of operations, a 0.2 percentage point decrease in amortization expense and a 0.1 percentage point decrease in impairments and other operating items, partially offset by a 0.5 percentage point increase in SG&A expenses.

Current wording

Operating income as a percentage of revenues increased 1.8 percentage points to 18.8% for the three months ended June 30, 2024, from 17.0% for the three months ended June 30, 2023. The increase as a percentage of revenues was comprised of a 1.3 percentage point decrease in our costs of operations, a 0.5 percentage point decrease in SG&A expenses and a 0.2 percentage point decrease in impairments and other operating items, partially offset by a 0.1 percentage point increase in depreciation expense and a 0.1 percentage point increase in amortization expense.

Previous wording

Interest Expense. Interest expense increased $10.1 million, or 14.8%, to $78.5 million for the three months ended March 31, 2024, from $68.4 million for the three months ended March 31, 2023. The increase was primarily attributable to an increase of $7.6 million due to an increase in the average borrowings outstanding under our Revolving Credit Agreement entered into during the three months ended March 31, 2024, an increase of $4.1 million from the issuance of $750.0 million of senior unsecured notes during the three months ended March 31, 2024, an increase of $2.7 million from

Current wording

Interest Expense. Interest expense increased $14.8 million, or 22.0%, to $82.4 million for the three months ended June 30, 2024, from $67.6 million for the three months ended June 30, 2023. The increase was primarily attributable to an increase of $9.3 million from the issuance of $750.0 million of senior unsecured notes during the three months ended March 31, 2024, an increase of $7.7 million due to an increase in the average borrowings outstanding under our Revolving Credit Agreement entered into during the three months ended March 31, 2024, an increase of $1.0 million from higher interest rates on borrowings outstanding during the comparative periods, an increase of $0.8 million from the issuance of CAD $500.0 million of senior unsecured notes during the three months ended June 30, 2024 and $2.0 million of other net expense increases, partially offset by a $6.0 million decrease attributable to a decrease in the average borrowings outstanding under our 2021 Revolving and Term Credit Agreement and 2022 Term Loan Agreement as a result of the early termination of these agreements during the three months ended March 31, 2024.

Previous wording

Interest Income. Interest income decreased $0.6 million to $2.1 million for the three months ended March 31, 2024, from $2.7 million for the three months ended March 31, 2023. The decrease was primarily attributable to lower average investment rates in the current period.

Current wording

Interest Income. Interest income increased $2.7 million to $4.0 million for the three months ended June 30, 2024, from $1.3 million for the three months ended June 30, 2023. Interest income increased $2.0 million to $6.1 million for the six months ended June 30, 2024, from $4.1 million for the six months ended June 30, 2023. The increases were primarily attributable to higher average investment rates in the current periods.

Previous wording

Other Income (Expense), Net. Other income (expense), net decreased $5.0 million, to an expense of $1.8 million for the three months ended March 31, 2024, from income of $3.2 million for the three months ended March 31, 2023.

Current wording

Other Income (Expense), Net. Other income (expense), net increased $9.8 million, to an income total of $9.6 million for the three months ended June 30, 2024, from an expense total of $0.2 million for the three months ended June 30, 2023.

Previous wording

Other expense of $1.8 million recorded during the three months ended March 31, 2024 consisted of $2.3 million from the write off of unamortized loan fees as a result of the early extinguishment of our 2021 Revolving and Term Credit Agreement and 2022 Term Loan Agreement, $0.5 million from an increase in the average foreign currency exchange rate in effect during the comparable reporting period reducing the U.S. dollar consideration required to settle international liabilities and $0.7 million of net losses from other sources, partially offset by $1.7 million from an increase in the value of investments purchased to fund our employee deferred compensation obligations.

Current wording

Other income of $7.8 million recorded during the six months ended June 30, 2024 consisted of $12.0 million from a gain on sale of certain investments and $1.8 million from an increase in the value of investments purchased to fund our employee deferred compensation obligations, partially offset by $2.3 million from the write off of unamortized loan fees as a result of the early extinguishment of our 2021 Revolving and Term Credit Agreement and 2022 Term Loan Agreement, $1.3 million from a decrease in the average foreign currency exchange rate in effect during the comparable reporting period reducing the U.S. dollar consideration required to settle international liabilities and $2.4 million of net losses from other sources.

Previous wording

Income Tax Provision. Income taxes increased $5.0 million, to $59.4 million for the three months ended March 31, 2024, from $54.4 million for the three months ended March 31, 2023. Our effective tax rate for the three months ended March 31, 2024 was 20.6%. Our effective tax rate for the three months ended March 31, 2023 was 21.6%.

Current wording

Income Tax Provision. Income taxes increased $12.0 million, to $80.6 million for the three months ended June 30, 2024, from $68.6 million for the three months ended June 30, 2023. Our effective tax rate for the three months ended June 30, 2024 was 22.6%. Our effective tax rate for the three months ended June 30, 2023 was 24.7%. Income taxes increased $17.1 million, to $140.0 million for the six months ended June 30, 2024, from $122.9 million for the six months ended June 30, 2023. Our effective tax rate for the six months ended June 30, 2024 was 21.7%. Our effective tax rate for the six months ended June 30, 2023 was 23.2%.

Previous wording

The income tax provision for the three months ended March 31, 2024 included a benefit of $5.2 million from share-based payment awards being recognized in the income statement when settled, as well as a portion of our internal financing being taxed at effective rates substantially lower than the U.S. federal statutory rate.

Current wording

The income tax provision for the three and six months ended June 30, 2024 included a benefit of $0.2 million and $5.4 million, respectively, from share-based payment awards being recognized in the income statement when settled, as well as a portion of our internal financing being taxed at effective rates substantially lower than the U.S. federal statutory rate.

Previous wording

The income tax provision for the three months ended March 31, 2023 included a benefit of $2.7 million from share-based payment awards being recognized in the income statement when settled, as well as a portion of our internal financing being taxed at effective rates substantially lower than the U.S. federal statutory rate.

Current wording

The income tax provision for the three and six months ended June 30, 2023 included a benefit of $0.2 million and $2.9 million, respectively, from share-based payment awards being recognized in the income statement when settled, as well as a portion of our internal financing being taxed at effective rates substantially lower than the U.S. federal statutory rate.

Previous wording

For the three months ended March 31, 2024, we managed our operations through the following six geographic solid waste operating segments: Western, Southern, Central, Eastern, Canada and MidSouth. Our six geographic solid waste operating segments comprise our reportable segments. Each operating segment is responsible for managing several vertically integrated operations, which are comprised of districts. Certain corporate or regional overhead expense allocations may affect comparability of the segment information presented herein on a period-over-period basis.

Current wording

For the six months ended June 30, 2024, we managed our operations through the following six geographic solid waste operating segments: Western, Southern, Eastern, Central, Canada and MidSouth. Our six geographic solid waste operating segments comprise our reportable segments. Each operating segment is responsible for managing several vertically integrated operations, which are comprised of districts. Certain corporate or regional overhead expense allocations may affect comparability of the segment information presented herein on a period-over-period basis.

Previous wording

Significant changes in revenue, EBITDA and depreciation, depletion and amortization for our reportable segments for the three month period ended March 31, 2024, compared to the three month period ended March 31, 2023, are discussed below.

Current wording

Significant changes in revenue, EBITDA and depreciation, depletion and amortization for our reportable segments for the three and six month periods ended June 30, 2024, compared to the three and six month periods ended June 30, 2023, are discussed below.

Previous wording

Revenue increased $26.4 million to $422.2 million for the three months ended March 31, 2024, from $395.8 million for the three months ended March 31, 2023, due to price increases, contributions from acquisitions and increases in residential collection volumes, partially offset by decreased transfer volumes and lower intermodal revenue.

Current wording

Revenue increased $35.0 million to $454.0 million for the three months ended June 30, 2024, from $419.0 million for the three months ended June 30, 2023. Revenue increased $61.4 million to $876.2 million for the six months ended June 30, 2024, from $814.8 million for the six months ended June 30, 2023. The increases for the three and six months ended June 30, 2024 were due to price increases, contributions from acquisitions, increases in residential and commercial collection volumes and higher landfill volumes, partially offset by decreased transfer and intermodal revenue.

Previous wording

EBITDA increased $2.4 million to $113.1 million, or a 26.8% EBITDA margin for the three months ended March 31, 2024, from $110.7 million, or a 28.0% EBITDA margin for the three months ended March 31, 2023. The decrease in our EBITDA margin was due to an increase in risk management expenses due to higher claim and premium costs, an increase in post-closure liability interest accretion expense, higher leachate costs and an increase in allocated corporate overhead, partially offset by a decrease in recycle processing fees, lower fuel costs due to lower diesel and natural gas prices, a decrease in truck, container, equipment and facility maintenance and repair costs and lower other operating costs as compared to the prior year period.

Current wording

EBITDA increased $17.3 million to $247.5 million, or a 28.2% EBITDA margin for the six months ended June 30, 2024, from $230.2 million, or a 28.3% EBITDA margin for the six months ended June 30, 2023. The decrease in our EBITDA margin for the six months ended June 30, 2024 was due to an increase in post-closure liability interest accretion expense, an increase in risk management expenses, the impact of acquisitions having lower EBITDA margins than our segment average and an increase in allocated corporate overhead, partially offset by a decrease in recycle processing fees, lower fuel costs due to lower diesel and natural gas prices and a decrease in landfill maintenance costs.

Previous wording

Revenue increased $19.0 million to $418.9 million for the three months ended March 31, 2024, from $399.9 million for the three months ended March 31, 2023, due to solid waste price increases, contributions from acquisitions, increased E&P waste revenues attributable to increases in the demand for our E&P waste services and an increase in recyclable commodity prices as compared to the prior year period, partially offset by lower residential collection volumes due to the purposeful non-renewal of collection contracts during the current and prior year periods, lower commercial collection volume and a decrease in post-collection volume.

Current wording

Revenue increased $25.2 million to $439.3 million for the three months ended June 30, 2024, from $414.1 million for the three months ended June 30, 2023. Revenue increased $44.2 million to $858.2 million for the six months ended June 30, 2024, from $814.0 million for the six months ended June 30, 2023. The increases for the three and six months ended June 30, 2024 were due to solid waste price increases, contributions from acquisitions, increased E&P waste revenues attributable to increases in the demand for our E&P waste services and an increase in recyclable commodity prices as compared to the prior year periods, partially offset by lower residential collection volumes due to the purposeful non-renewal of collection contracts, lower commercial collection volume and a decrease in post-collection volume.

Previous wording

EBITDA increased $6.5 million to $128.4 million, or a 30.7% EBITDA margin for the three months ended March 31, 2024, from $121.9 million, or a 30.5% EBITDA margin for the three months ended March 31, 2023. The increase in our EBITDA margin was due to price-led increases in solid waste revenue, increased earnings at our E&P waste operations, lower legal costs, decreases in fuel costs and the purposeful non-renewal of certain residential contracts, partially offset by an increase in risk management expenses, increased leachate expense, higher allocated overhead expense, increased benefits costs and an increase in bad debt expense.

Current wording

EBITDA increased $8.8 million to $138.5 million, or a 31.5% EBITDA margin for the three months ended June 30, 2024, from $129.7 million, or a 31.3% EBITDA margin for the three months ended June 30, 2023. EBITDA increased $15.3 million to $266.9 million, or a 31.1% EBITDA margin for the six months ended June 30, 2024, from $251.6 million, or a 30.9% EBITDA margin for the six months ended June 30, 2023. The increases in our EBITDA margin for the three and six months ended June 30, 2024 were due to price-led increases in solid waste revenue, increased earnings at our E&P waste operations, the purposeful non-renewal of certain residential contracts, decreases in fuel costs and lower disposal costs, partially offset by an increase in risk management expenses, increased leachate expense, higher trucking costs and an increase in benefits expense.

Previous wording

Depreciation, depletion and amortization expense decreased $0.3 million, to $44.7 million for the three months ended March 31, 2024, from $45.0 million for the three months ended March 31, 2023, due to a reduction in amortization expense associated with the loss of certain residential service contracts.

Current wording

Depreciation, depletion and amortization expense increased $2.9 million, to $48.8 million for the three months ended June 30, 2024, from $45.9 million for the three months ended June 30, 2023. Depreciation, depletion and amortization expense increased $2.7 million, to $93.6 million for the six months ended June 30, 2024, from $90.9 million for the six months ended June 30, 2023. The increases for the three and six months ended June 30, 2024 were due to a reduction in amortization expense associated with the loss of certain residential service contracts.

Previous wording

Revenue increased $31.0 million to $360.1 million for the three months ended March 31, 2024, from $329.1 million for the three months ended March 31, 2023, due to contributions from acquisitions, price increases and an increase in recyclable commodity prices as compared to the prior year period, partially offset by decreased residential and commercial service revenues and lower roll off volumes.

Current wording

Revenue increased $42.7 million to $386.1 million for the three months ended June 30, 2024, from $343.4 million for the three months ended June 30, 2023. Revenue increased $73.6 million to $746.2 million for the six months ended June 30, 2024, from $672.6 million for the six months ended June 30, 2023. The increases for the three and six months ended June 30, 2024 were due to contributions from acquisitions, price increases, an increase in recyclable commodity prices as compared to the prior year period and higher landfill volumes, partially offset by decreased residential and commercial service revenues and lower roll off volumes.

Previous wording

EBITDA increased $21.7 million to $95.0 million, or a 26.4% EBITDA margin for the three months ended March 31, 2024, from $73.3 million, or a 22.3% EBITDA margin for the three months ended March 31, 2023. The increase in our EBITDA margin was due primarily to price-led increases in revenue, lower labor and benefits costs, a decrease in trucking and disposal expenses as a result of purposefully lost volumes and increased internalization in certain markets, a decrease in leachate costs, lower professional fees as a result of a decrease in legal costs and a decrease in truck, container, equipment and facility maintenance and repair expenses, partially offset by the impact of acquisitions having lower EBITDA margins than our segment average and an increase in risk management expenses.

Current wording

EBITDA increased $16.6 million to $103.1 million, or a 26.7% EBITDA margin for the three months ended June 30, 2024, from $86.5 million, or a 25.2% EBITDA margin for the three months ended June 30, 2023. EBITDA increased $38.3 million to $198.1 million, or a 26.5% EBITDA margin for the six months ended June 30, 2024, from $159.8 million, or a 23.8% EBITDA margin for the six months ended June 30, 2023. The increases in our EBITDA margin for the three and six months ended June 30, 2024 were due primarily to price-led increases in revenue, a decrease in trucking and disposal expenses as a result of purposefully lost volumes and increased internalization in certain markets, lower labor and benefits costs, a decrease in landfill maintenance costs and lower professional fees, partially offset by the impact of acquisitions having lower EBITDA margins than our segment average, an increase in risk management expenses and an increase in allocated corporate overhead.

Previous wording

Depreciation, depletion and amortization expense increased $5.5 million, to $53.5 million for the three months ended March 31, 2024, from $48.0 million for the three months ended March 31, 2023, due to assets acquired in acquisitions and additions to our fleet and equipment, partially offset by a reduction in amortization expense associated with the loss of certain residential service contracts.

Current wording

Depreciation, depletion and amortization expense increased $4.7 million, to $57.0 million for the three months ended June 30, 2024, from $52.3 million for the three months ended June 30, 2023. Depreciation, depletion and amortization expense increased $10.2 million, to $110.5 million for the six months ended June 30, 2024, from $100.3 million for the three months ended June 30, 2023. The increases for the three and six months ended June 30, 2024 were due to assets acquired in acquisitions and additions to our fleet and equipment, partially offset by a reduction in amortization expense associated with the loss of certain residential service contracts.