Early Access

10-KPeriod: FY2007

WASTE MANAGEMENT INC Annual Report, Year Ended Dec 31, 2007

Filed February 19, 2008For Securities:WM

Summary

Waste Management Inc. (WM) reported total revenues of $13.31 billion for the year ended December 31, 2007, a slight decrease of 0.4% compared to 2006, primarily due to volume declines and divestitures, partially offset by yield improvements and higher recycling commodity prices. The company demonstrated strong operational performance, with income from operations increasing by 11% year-over-year, driven by effective pricing strategies, cost control measures, and a focus on operational excellence. Despite a slowdown in residential construction and pricing competition, WM achieved margin expansion, with operating expenses decreasing as a percentage of revenue. The company generated $1.5 billion in free cash flow, supporting its capital allocation program, which included significant share repurchases and dividend payments. Looking ahead, WM anticipates continued challenges from economic conditions and pricing competition but remains focused on profitable growth through targeted sales efforts and strategic initiatives, aiming to enhance shareholder value.

Financial Highlights

24 data points
Beta

Revenue

$13.31B

Net Income

$1.16B

0.1% Net Margin

EPS (Diluted)

$2.23

Cash & Equivalents

$348.00M

Free Cash Flow

$2.44B

Financial Statements
Beta
Revenue$13.31B
SG&A Expenses$1.43B
Operating Expenses$11.06B
Operating Income$2.25B
Net Income$1.16B
EPS (Basic)$2.25
EPS (Diluted)$2.23

Key Highlights

  • 1Total revenue for 2007 was $13.31 billion, a slight decrease of 0.4% from 2006, reflecting a mixed economic environment.
  • 2Income from operations increased by 11% to $2.25 billion, demonstrating improved profitability and operational efficiency.
  • 3Operating expenses decreased by 2.2% year-over-year, and as a percentage of revenue, declined by 1.2 percentage points, indicating effective cost management.
  • 4Free cash flow generation remained strong at $1.5 billion, providing financial flexibility for dividends, share repurchases, and strategic investments.
  • 5The company actively managed its portfolio through divestitures, reducing revenues by $320 million in 2007, focusing on under-performing and non-strategic assets.
  • 6Waste Management continued its capital allocation program, repurchasing approximately $1.4 billion of common stock and paying $495 million in dividends during 2007.
  • 7Landfill airspace, a key asset, showed a weighted average remaining life of approximately 30 years, with potential for expansion at 54 landfills.

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