Meridian Waste Solutions Inc. (NASDAQ: MRDN) is having an overwhelmingly strong day in the market today, and for good reason. The company announced earnings as well as lobbying efforts, both of which are exciting investors. Today, we'll talk about the news, how the stock is reacting, and what we'll be watching for with regard to MRDN ahead.
MRDN Announces Earnings
As mentioned above, Meridian Waste Solutions is having an incredibly strong day in the market today. A Big part of the gains has to do with the financial results that were announced yesterday. Here's what we saw from the report:
- Revenue – During the quarter, MRDN saw impressive growth in revenue. In fact, quarterly revenue came in at $14.8 million. That's an increase of 77% compared to the third quarter of 2016. The company said that the growth was primarily due to the acquisition of the CFS Group. Nonetheless, organic revenue growth was also an impressive 9.0%.
- Operating Expensive – MRDN also reported an impressive decline in operating expenses as a percentage of revenue. In fact, in the third quarter, operating expenses came in at 70% of revenue. That's a big drop from the 80% figure we saw in the second quarter.
- EBITDA – Finally, Meridian Waste Solutions said that Adjusted EBITDA came in at $3.4 million for the core waste management and services segment, in relation to interest expense of $2.7 million.
In a statement, Jeff Cosman, Chairman and CEO at MRDN, had the following to offer:
“We continue to integrate and improve efficiencies in our Mid-Atlantic segment, particularly our Virginia assets, and uncover ways to improve margins. Thanks to being able to access the capital markets for an additional $5 million over the past few months, we have been able to deploy new equipment in Virginia to be able to improve our operating efficiencies and margins. It is these developments and processes that increase our value for the longer-term. We continue to look for growth opportunities in all areas of our waste operations; the core platform of waste management and services and the emerging growth innovations and technology... We are very enthused about what we have assembled with Innovations and look forward to sharing our progress with the markets in the near future.”
After announcing earnings yesterday, MRDN also released a press release this morning. In the press release, the company announced that it's wholly owned subsidiary, Meridian Innovations, has made some efforts on the lobbying front. According to the PR, the company attended the quarterly Biomass Research and Development meeting in Washington, D.C., providing a formal public comment to the Technical Advisory Committee. The comment was aimed at urging the committee to continue its support of government-funded opportunities for biomass feedstock and bio-based product research and development. In a statement, Jeff Cosman, CEO at MRDN, had the following to offer:
“Attis Innovations believes heavily in the role of government agencies to provide guidance and funding opportunities for the development of biobased products... We believe the combination of Attis Innovations revolutionary technology portfolio and the support of government advisory entities like the Biomass Research and Development Board will propel the US towards the reduction of fossil fuels and create countless green collar jobs that will support the US bioeconomy.”
What We're Seeing From MRDN
As we've come to expect any time we see strong earnings out of a publicly traded company, Meridian Waste Solutions is having an incredible day in the market today. Of course, our partners at Trade Ideas were the first to alert us to the gains. At the moment (10:37), MRDN is trading at $2.30 per share after a gain of $0.88 per share or 62.30% thus far today.
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What We'll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on MRDN. In particular, we're interested in following the story surrounding the company's ongoing work in biomass innovation while revenue from the company's core services business continues to grow. Nonetheless, we'll continue to follow the story closely and bring the news to you as it breaks!
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