Summary
Waste Management, Inc. (WM) reported revenues of $12.96 billion for the year ended December 31, 2015, a decrease from the previous year primarily driven by the divestiture of its Wheelabrator business, lower volumes, and decreased fuel surcharges and commodity prices. Despite the revenue decline, the company emphasized strong core pricing in its collection and disposal operations, contributing to a positive yield. The company returned $1.3 billion to shareholders through dividends and share repurchases in 2015 and announced an expected dividend increase for 2016, signaling confidence in its free cash flow generation capabilities. Key financial events for 2015 included a significant pre-tax loss of $555 million related to the early extinguishment of senior notes, aimed at reducing future interest expenses. The company also managed various asset impairments and restructuring charges impacting net income. Despite these one-time items, WM's operational focus remained on cost control, customer service, and strategic growth through acquisitions, highlighted by the purchase of Deffenbaugh Disposal, Inc. The company continued to manage its extensive landfill network, which underpins its operations and future capacity.
Financial Highlights
56 data points| Revenue | $12.96B |
| Cost of Revenue | $8.23B |
| Gross Profit | $4.73B |
| SG&A Expenses | $1.34B |
| Operating Expenses | $10.92B |
| Operating Income | $2.04B |
| Net Income | $753.00M |
| EPS (Basic) | $1.66 |
| EPS (Diluted) | $1.65 |
| Shares Outstanding (Basic) | 452.70M |
| Shares Outstanding (Diluted) | 455.90M |
Key Highlights
- 1Total operating revenues for 2015 were $12.96 billion, a decrease of 7.4% from $13.99 billion in 2014, largely due to divestitures and lower volumes.
- 2Income from operations decreased to $2.045 billion in 2015 from $2.299 billion in 2014, impacted by various charges and the sale of the Wheelabrator business.
- 3Net income attributable to Waste Management, Inc. was $753 million ($1.65 per diluted share) in 2015, down from $1.30 billion ($2.79 per diluted share) in 2014, significantly impacted by a $555 million loss on early debt extinguishment.
- 4Free cash flow was $1.41 billion in 2015, a substantial decrease from $3.43 billion in 2014, primarily due to the proceeds from the Wheelabrator divestiture in the prior year.
- 5The company returned $1.3 billion to shareholders in 2015 through dividends ($695 million) and share repurchases ($600 million).
- 6Acquisition activity included Deffenbaugh Disposal, Inc. for $416 million in March 2015, strengthening its Midwest presence.
- 7The company's extensive landfill network remained a core asset, with approximately 46 years of remaining weighted average landfill life based on remaining permitted airspace.