Covanta Holding Corporation (NYSE:CVA) Q3 2018 Earnings Conference Call Transcript

Oct 26, 2018 • 08:30 am ET

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Covanta Holding Corporation (NYSE:CVA) Q3 2018 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good morning, everyone, and welcome to the Covanta Holding Corporation's Third Quarter 2018 Financial Results Conference Call and Webcast. An archived webcast will be available two hours after the end of the conference call and can be accessed through the Investor Relations section of the Covanta website at www.covanta.com. The transcript will also be archived on the company's website.

At this time, for opening remarks and introductions, I'd like to turn the call over to Dan Mannes, Covanta's VP of IR. Please go ahead.

Executive
Dan Mannes

Thank you, Kelly. Good morning, and welcome to Covanta's third quarter 2018 conference call. Joining me on the call today will be Steve Jones, our President and CEO; and Brad Helgeson, our CFO. We will provide an operational and business update, review our financial results, and then take your questions. During their prepared remarks, Steve and Brad will be referencing certain slides that we prepared to supplement the audio portion of this call. Those slides can be accessed now or after the call on the Investor Relations section of our website, www.covanta.com. These prepared remarks should be listened to in conjunction with these slides.

(Forward-looking Cautionary Statements)

The content of this conference call contains time-sensitive information that is only accurate as of the date of this live broadcast, October 26th of 2018. We do not assume any obligation to update our forward-looking information unless required by law. Any redistribution, retransmission or rebroadcast of this call in any form without the express written consent of Covanta is prohibited.

The information presented includes non-GAAP financial measures. Because these measures that are not calculated in accordance with US GAAP, they should not be considered in isolation from our financial statements, which have been prepared in accordance with GAAP. For more information regarding definitions of our non-GAAP measures and how we use them as well as limitations as to their usefulness for comparative purposes, please see our press release, which we issued last night and was furnished to the SEC on Form 8-K.

With that, I'd like to turn the call over to our President and CEO, Steve Jones. Steve?

Executive
Steve Jones

Thanks, Dan, and good morning everyone. For those of you using the web deck please turn to slide three. I'll provide a brief overview of the financial results along with an update on our strategic initiatives. Then I'll provide more color on the key drivers that impacted this quarter. 2018 began with improved results and we've maintained that momentum. I am very pleased with the team's performance here at Covanta.

We generated $122 million of adjusted EBITDA and $85 million of free cash flow during the third quarter and this performance is the product of record production at many of our facilities along with rising waste pricing and effective cost management. We are again reaffirming our full-year guidance and we expect the full-year adjusted EBITDA will be in the upper-end of our guidance range.

The bedrock of our improved performance lies in the effectiveness of our operations. We continue to invest