Summary
Waste Management, Inc. (WM) reported solid revenues and operational performance for the fiscal year ending December 31, 2019. The company demonstrated consistent growth in its core collection and disposal businesses, benefiting from a generally favorable economic environment. WM also made significant strategic investments, allocating substantial capital to acquisitions and fleet enhancements to support ongoing growth and operational efficiency. The company's commitment to returning value to shareholders was evident through increased dividend payouts and share repurchases, underscoring its financial stability and confidence in future performance. Despite challenges like declining recycling commodity prices, WM continued to focus on sustainable business models and adapting to evolving customer needs and regulatory landscapes. The company's strategic initiatives, including investments in technology and people, are designed to leverage its industry-leading asset network for enhanced customer experience and profitable growth. The pending acquisition of Advanced Disposal Services, Inc. is a key strategic move expected to further strengthen WM's market position, though subject to regulatory approvals and integration risks. Overall, Waste Management's 2019 performance reflects a resilient business model, a clear strategic vision, and a continued focus on delivering long-term value to its stakeholders.
Financial Highlights
54 data points| Revenue | $15.46B |
| Cost of Revenue | $9.50B |
| Gross Profit | $5.96B |
| SG&A Expenses | $1.63B |
| Operating Expenses | $12.75B |
| Operating Income | $2.71B |
| Net Income | $1.67B |
| EPS (Basic) | $3.93 |
| EPS (Diluted) | $3.91 |
| Shares Outstanding (Basic) | 424.60M |
| Shares Outstanding (Diluted) | 427.50M |
Key Highlights
- 1Waste Management's total revenue increased by 3.6% to $15.46 billion in 2019, driven by growth in collection and disposal volumes and strategic acquisitions.
- 2The company's commitment to shareholder returns was highlighted by a planned 6.3% increase in quarterly dividends for 2020, marking the 17th consecutive year of dividend increases.
- 3Despite lower recycling commodity prices, WM focused on improving the profitability of its recycling business through fee-based pricing models to cover increased processing and contamination costs.
- 4Significant capital allocation was directed towards acquisitions ($527 million) and capital expenditures ($1.82 billion), including fleet modernization and landfill development, to support business growth.
- 5The company's strong financial position is supported by healthy operating cash flow ($3.87 billion) and free cash flow ($2.11 billion) in 2019.
- 6WM announced plans to acquire Advanced Disposal Services, Inc. for $4.9 billion (including debt), a strategic move aimed at expanding its market presence and operational capabilities.
- 7The company continued its investment in a natural gas vehicle fleet, operating nearly 9,000 natural gas trucks and 145 fueling facilities to reduce environmental impact and operating costs.