Waste Connections revenue up 10 percent

Revenue at Waste Connections Inc. gained 10.8 percent in the second quarter, and net income rose 3.8 percent, the company said Tuesday.

For the three months ended June 30, revenue totaled $267 million, an increase from $241 million in the second quarter last year. Second-quarter net income rose to $26.2 million, or 39 cents per diluted share, an increase from $25.3 million, or 36 cents per diluted share, in the quarter ended June 30, 2007.

“We remain extremely pleased with our performance in the year considering the rapid escalation in fuel costs and weakening economic environment,” said Ron Mittelstaedt, chairman and chief executive officer of Folsom-based Waste Connections (NYSE: WCN), said in a press release. A 55 percent year-over-year increase in average fuel prices cost the company about $8 million in the quarter.

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“Fortunately, continuing pricing strength and operating improvements enabled us to recover most of the dollar impact of this unprecedented increase,” Mittelstaedt said. “Our strong free cash flow, expansion of our credit facility and recently executed private note placement agreement position us to fund a potential increase in acquisition activity later in the year, with access to additional capital if necessary.”

In the six months ended June 30 revenue reached $517.3 million, a 12.5 percent increase from $460 million in the first half of 2007. Net income for six months was $29.2 million, or 73 cents per share on a diluted basis of 68 million shares. In the first half of last year the company reported net income of $47.6 million, or 67 cents per share on a diluted basis of 70.6 million shares.