10-KPeriod: FY2010

WASTE MANAGEMENT INC Annual Report, Year Ended Dec 31, 2010

Filed February 17, 2011For Securities:WM

Summary

Waste Management Inc. (WM) reported solid financial performance for the fiscal year ended December 31, 2010. The company's revenues saw a healthy increase driven by rising recycling commodity prices, a strong fuel surcharge program, and contributions from acquisitions. While volumes experienced a slight decline, the rate of this decline moderated compared to the previous year. The company demonstrated effective cost management across its operations, leading to an improvement in income from operations. WM also continued its commitment to returning value to shareholders through dividend payments and share repurchases, signaling confidence in its free cash flow generation and future prospects. The company is strategically focused on customer-centric growth, leveraging technology, and investing in greener technologies to drive long-term value.

Financial Highlights

51 data points
Beta

Revenue

$12.52B

Net Income

$953.00M

7.6% Net Margin

EPS (Diluted)

$1.98

Total Assets

$21.48B

Cash & Equivalents

$539.00M

Free Cash Flow

$2.27B

Financial Statements
Beta
Revenue$12.52B
SG&A Expenses$1.46B
Operating Expenses$10.40B
Operating Income$2.12B
Interest Expense$490.00M
Net Income$953.00M
EPS (Basic)$1.98
EPS (Diluted)$1.98
Shares Outstanding (Basic)480.20M
Shares Outstanding (Diluted)482.20M

Key Highlights

  • 1Total revenues increased by 6.1% to $12.5 billion, primarily driven by recycling commodity prices and acquisitions.
  • 2Income from operations improved to $2.1 billion, a 12.1% increase year-over-year, reflecting disciplined pricing and cost control.
  • 3Internal revenue growth from volume declined by 2.6%, an improvement from the prior year's 8.1% decline.
  • 4Free cash flow remained strong at $1.2 billion, enabling substantial returns to shareholders.
  • 5The company announced an 8% increase in its expected quarterly dividend for 2011, signaling confidence in consistent cash flow generation.
  • 6Strategic initiatives focused on customer knowledge, value extraction from materials, and operational efficiency are driving growth.
  • 7Investments in new markets and greener technologies, including a significant investment in Shanghai Environment Group, demonstrate international expansion efforts.

Frequently Asked Questions

Waste Management's total revenues increased by 6.1% to $12.5 billion in 2010. This growth was largely attributed to a $423 million increase from higher recycling commodity prices, a $69 million increase from the fuel surcharge program, and $240 million from acquired businesses. Internal revenue growth from yield on collection and disposal services was 2.3%.

Operating expenses increased by 8.1% to $7.8 billion, primarily due to higher recycling commodity rebates, increased fuel prices, and costs associated with oil spill clean-up services. However, the company's focus on cost control initiatives and operational efficiencies helped to mitigate some of these increases, and operating expenses as a percentage of revenue improved slightly.

Waste Management's strategy is centered on three long-term goals: deepening customer knowledge, extracting more value from managed materials through conversion and processing technologies, and continuously improving operational efficiency. In the short term, this includes growing markets via customer-focused initiatives and acquisitions, enhancing customer loyalty through technology, investing in greener technologies, and optimizing operations and cost structures.

Waste Management returned $1.1 billion to shareholders in 2010 through $604 million in dividends and $501 million in share repurchases. The company announced an expected 8% increase in its quarterly dividend for 2011, indicating a commitment to consistent shareholder returns.