Margin Outlook and Expansion
Q: Can you provide more detail on the margin improvement and expectations going forward?
A: Margins improved by 160 basis points in Q1, a strong start despite weather impacts. Excluding weather, margins were up 200 basis points, split between commodities like recycling and RINs contributing about 100 basis points, and the underlying solid waste business adding another 100 basis points. We expect continued margin expansion with an incremental 120 basis points improvement in Q2 driven by the underlying business. Our full-year guidance anticipates 120 basis points of margin expansion evenly distributed, but we are considering an update in July due to outperformance.

Impact of PFAS Regulations
Q: How will the new PFAS regulations affect Waste Connections, particularly leachate costs and M&A opportunities?
A: The EPA's PFAS regulations were expected and are seen as positive for well-capitalized companies like ours. We believe it creates a uniform playing field and potential pricing opportunities exceeding compliance costs. Leachate costs are around 1% of revenues, and treatment technologies are available at capital costs of $1 million to $4 million per landfill, which won't significantly increase expenses. Over time, these regulations could drive M&A, benefiting larger acquirers, though impacts may not be felt until 2025 or later.

M&A Contributions to Revenue
Q: What is the expected M&A benefit to 2024 revenue based on recent activities?
A: Incremental deal activity adds $80 million to $90 million for the full year on top of the previously expected $325 million. We're seeing opportunities across all regions with active LOIs, potentially making this one of our busiest years for acquisitions.

Employee Turnover Reduction
Q: How is employee turnover trending, and what impact will it have on the business?
A: We've reduced open headcounts year-over-year by 46%, bringing open positions down to about 4% from a peak of 7.5%. Voluntary turnover is now at 15.7% with a target of 10% to 12% by year-end. Lower turnover is starting to yield cost benefits, contributing 10 to 20 basis points of margin improvement so far, with more expected over time.

SECURE Energy Acquisition Update
Q: What's the update on the SECURE Energy acquisition and its impact on guidance?
A: Of the 29 acquired facilities, we're currently running 22. We may reopen up to 2 of the 7 shuttered facilities before year-end, with more potentially in 2025 and 2026. The guidance does not assume any incremental openings, so any additions would provide upside.

Chiquita Canyon Landfill Expenses
Q: How are expenses for the Chiquita Canyon landfill tracking, and will cost estimates change?
A: Expenses are tracking as expected, and we don't anticipate significant changes to the accrued $160 million closure cost. We review closure and post-closure accruals annually, and any material changes will be communicated.

Guidance on Commodity Prices
Q: What are the guidance assumptions for recycled commodity and RIN prices?
A: In Q1, OCC prices averaged $130 per ton and RINs averaged $3.10. The guidance assumes these prices remain around current levels into Q2.

Weather Impact on Q1
Q: How did weather affect Q1, and how does it compare to normal patterns?
A: Unusually severe weather, including extreme cold and heavy snow, caused shutdowns in several regions for up to 12 days, which is abnormal compared to typical seasonal impacts.

Future Margin Targets Beyond 34%
Q: With margins approaching 34%, do you have new targets?
A: We don't see 34% as a limiting factor and expect margins to go well north of that, especially with contributions from the SECURE acquisition, adding about 50 basis points, and future RNG projects not yet included.

New York City Franchise Update
Q: Any updates on the New York City franchise process?
A: The beta pilot for several zones begins on September 4th, and we are assisting by providing electric vehicles for the city's evaluation.