Summary
Waste Management Inc. (WM) reported solid financial results for the year ended December 31, 2014, demonstrating resilience and strategic execution. Total revenues remained stable year-over-year at approximately $14 billion, supported by yield improvements in collection and disposal services, and contributions from strategic acquisitions. A significant event during the year was the sale of the Wheelabrator business, which generated substantial proceeds intended for reinvestment in core operations and shareholder value creation through acquisitions and potential share repurchases. Operationally, WM focused on its five key priorities: customer service, operational performance, growth, yield management, and cost control. These efforts contributed to a notable increase in income from operations, largely driven by a significant gain from the Wheelabrator divestiture and favorable comparisons to prior-year impairment charges. The company also demonstrated a commitment to shareholder returns, increasing dividends and actively repurchasing shares. Despite a challenging market environment for some commodities, WM's diversified business model and strategic focus position it for continued financial strength and value generation.
Financial Highlights
55 data points| Revenue | $14.00B |
| Cost of Revenue | $9.00B |
| Gross Profit | $4.99B |
| SG&A Expenses | $1.48B |
| Operating Expenses | $11.70B |
| Operating Income | $2.30B |
| Net Income | $1.30B |
| EPS (Basic) | $2.80 |
| EPS (Diluted) | $2.79 |
| Shares Outstanding (Basic) | 462.60M |
| Shares Outstanding (Diluted) | 465.60M |
Key Highlights
- 1Total revenues were largely flat at $13.996 billion for 2014, reflecting stable core operations.
- 2Income from operations saw a substantial increase to $2.299 billion, primarily due to the $519 million gain on the sale of the Wheelabrator business and reduced impairment charges compared to the prior year.
- 3The company successfully completed the sale of its Wheelabrator waste-to-energy business for $1.95 billion, generating significant proceeds for future strategic investments.
- 4Free cash flow remained robust at $3.433 billion, enabling the company to return capital to shareholders through dividends ($693 million) and share repurchases ($600 million).
- 5WM is strategically focused on enhancing its core Solid Waste business through operational improvements, yield management, and disciplined cost control, while exploring accretive acquisition opportunities.
- 6The company plans to increase its quarterly dividend in 2015, signaling confidence in its ability to generate consistent cash flows.
- 7Total assets decreased to $21.412 billion from $22.603 billion, partly due to the Wheelabrator divestiture.