Summary
Waste Management, Inc. (WM) reported revenues of $11.8 billion for the year ended December 31, 2009, a decrease from the prior year primarily attributed to challenging economic conditions, lower recyclable commodity prices, and reduced electricity market prices. Despite these headwinds, the company demonstrated resilience through effective cost management, internal revenue growth from pricing initiatives, and a strong focus on operational excellence. Management highlighted the generation of $1.2 billion in free cash flow, which supported dividend payments and share repurchases, underscoring the company's ability to generate consistent cash flows. Looking ahead, WM aims to continue its strategy of operational and pricing excellence, with a focus on profitable growth and returning value to shareholders through dividends and share repurchases. The company also announced an expected increase in its quarterly dividend for 2010, signaling confidence in its future performance and cash generation capabilities.
Financial Highlights
51 data points| Revenue | $11.79B |
| SG&A Expenses | $1.36B |
| Operating Expenses | $9.90B |
| Operating Income | $1.89B |
| Interest Expense | $443.00M |
| Net Income | $994.00M |
| EPS (Basic) | $2.02 |
| EPS (Diluted) | $2.01 |
| Shares Outstanding (Basic) | 491.20M |
| Shares Outstanding (Diluted) | 493.60M |
Key Highlights
- 1Total revenue for 2009 was $11.8 billion, a decrease from $13.4 billion in 2008, primarily due to economic conditions and market factors affecting commodity and electricity prices.
- 2The company generated $1.211 billion in free cash flow, down from $1.466 billion in 2008, but sufficient to fund dividends and share repurchases.
- 3Income from operations was $1.9 billion, impacted by $83 million in non-cash impairment charges related to software and a landfill.
- 4Waste Management streamlined operations by consolidating 45 Market Areas into 25, incurring $50 million in restructuring costs but achieving over $120 million in annualized cost savings.
- 5The company repurchased $226 million of its common stock in 2009 after suspending repurchases earlier in the year due to market conditions.
- 6The Board of Directors expects to increase the quarterly dividend to $0.315 per share in 2010, an 8.6% increase.
- 7Landfill assets remained significant, with 273 owned or operated landfills and an estimated weighted average remaining landfill life of approximately 35 years, extending to 41 years with expansion airspace.