Summary
Waste Management, Inc. (WM) demonstrated revenue growth in 2012, driven by strategic acquisitions, particularly Oakleaf Global Holdings, and internal yield improvements in its core collection and disposal services. Despite lower commodity prices negatively impacting recycling revenues and increased operating expenses due to acquisitions and fuel costs, the company managed to increase its dividend and maintained its commitment to shareholder returns. The company is focused on its three transformational goals: deeper customer understanding, extracting more value from materials, and improving operational efficiency through initiatives like a significant operational reorganization in July 2012. WM continues to invest in greener technologies and expand its service offerings, positioning itself for long-term growth in a dynamic industry. Financially, WM reported revenues of $13.6 billion for 2012, a 2.0% increase from 2011. However, net income attributable to Waste Management, Inc. decreased to $817 million in 2012 from $961 million in 2011, partly due to impairment and restructuring charges totaling $109 million and $82 million respectively. Free cash flow also saw a decrease, coming in at $829 million in 2012 compared to $1,198 million in 2011. The company's strategic direction emphasizes growth through customer focus, technology investment, and operational efficiency, aiming to deliver long-term value to stockholders.
Financial Highlights
53 data points| Revenue | $13.65B |
| Cost of Revenue | $8.88B |
| Gross Profit | $4.77B |
| SG&A Expenses | $1.47B |
| Operating Expenses | $11.80B |
| Operating Income | $1.85B |
| Interest Expense | $509.00M |
| Net Income | $817.00M |
| EPS (Basic) | $1.76 |
| EPS (Diluted) | $1.76 |
| Shares Outstanding (Basic) | 463.60M |
| Shares Outstanding (Diluted) | 464.40M |
Key Highlights
- 1Total operating revenues increased by 2.0% to $13.6 billion in 2012, primarily driven by acquisitions and internal yield improvements.
- 2The company announced an expected increase in its quarterly dividend from $0.355 to $0.365 per share for dividends declared in 2013.
- 3WM completed a significant operational reorganization in July 2012, streamlining management and reducing the cost structure by consolidating geographic Areas.
- 4Acquisitions, notably Oakleaf Global Holdings, contributed significantly to revenue growth, although integration costs impacted operating expenses.
- 5Net income attributable to Waste Management, Inc. decreased to $817 million in 2012 from $961 million in 2011, impacted by impairment and restructuring charges.
- 6Free cash flow decreased to $829 million in 2012 from $1,198 million in 2011, influenced by increased capital expenditures and lower cash earnings.
- 7Recycling revenues were negatively impacted by a 25% decline in commodity prices in 2012, affecting operating income.