10-KPeriod: FY2011

WASTE MANAGEMENT INC Annual Report, Year Ended Dec 31, 2011

Filed February 16, 2012For Securities:WM

Summary

Waste Management, Inc. (WM) reported a strong financial performance in its 2011 10-K filing, highlighting revenue growth driven by improved commodity prices, a robust fuel surcharge program, and strategic acquisitions, most notably Oakleaf Global Holdings. The company generated $13.4 billion in revenue, a 6.9% increase from the previous year, and $2.5 billion in net cash from operating activities. WM also demonstrated a commitment to shareholder returns, returning $1.2 billion through dividends and share repurchases. Key strategic goals include deepening customer understanding, extracting more value from materials through technology, and enhancing operational efficiency. The company is investing in "greener technologies" and expanding its service offerings, reflecting a focus on sustainability and adapting to industry changes. Despite facing intense competition and ongoing regulatory environments, WM's diversified operations across collection, landfill, transfer, recycling, and waste-to-energy segments position it as a leader in the North American waste management industry.

Financial Highlights

53 data points
Beta

Revenue

$13.38B

90.4% Gross Margin

Net Income

$961.00M

7.2% Net Margin

EPS (Diluted)

$2.04

Total Assets

$22.57B

Cash & Equivalents

$258.00M

Free Cash Flow

$2.47B

Financial Statements
Beta
Revenue$13.38B
Cost of Revenue$1.29B
Gross Profit$12.09B
SG&A Expenses$1.55B
Operating Expenses$11.35B
Operating Income$2.03B
Interest Expense$503.00M
Net Income$961.00M
EPS (Basic)$2.05
EPS (Diluted)$2.04
Shares Outstanding (Basic)469.70M
Shares Outstanding (Diluted)471.40M

Key Highlights

  • 1Revenue grew by 6.9% to $13.4 billion in 2011, primarily driven by improved recyclable commodity prices, a fuel surcharge program, and the acquisition of Oakleaf Global Holdings.
  • 2Net cash provided by operating activities increased by 8.5% to $2.5 billion in 2011.
  • 3The company returned $1.2 billion to shareholders through dividends ($637 million) and share repurchases ($575 million) in 2011.
  • 4WM owns and operates the largest network of landfills in the industry with 271 sites.
  • 5The company is expanding its renewable energy offerings through waste-to-energy and landfill gas-to-energy facilities.
  • 6Acquisition of Oakleaf Global Holdings for $432 million in July 2011 is expected to enhance national accounts customer base and comprehensive environmental solutions.
  • 7Despite a challenging economic environment and competitive landscape, WM is focused on strategic growth initiatives, operational efficiency, and cost savings.

Frequently Asked Questions

Waste Management reported revenue of $13.4 billion in 2011, an increase of 6.9% from the prior year. Key drivers of this growth included improved pricing and volumes in its collection and disposal business (yield), higher prices for recyclable commodities, increased revenue from its fuel surcharge program, and the significant impact of acquisitions, particularly Oakleaf Global Holdings.

In 2011, Waste Management returned $1.2 billion to its shareholders. This included $637 million in cash dividends and $575 million in share repurchases, demonstrating a commitment to returning value to investors.

Waste Management's strategy is focused on three core goals: deeper customer understanding, maximizing value from materials through technology, and continuous improvement in operational efficiency. The company plans to achieve this through customer-focused growth, strategic acquisitions, investment in "greener technologies," and initiatives to improve its operations and cost structure. They also aim to grow customer loyalty and service new markets.

Key risks identified include intense competition in the waste industry, the potential failure to implement its business strategy successfully, the impact of extensive government regulations, fluctuations in commodity prices (especially for recycling and energy), increasing customer preference for waste diversion alternatives to landfill and waste-to-energy disposal, and general economic conditions affecting consumer spending and waste volumes.