Summary
Waste Management Inc. (WM) reported improved financial results for the first quarter of 2010 compared to the same period in 2009. Revenue increased by 4.4% to $2,935 million, driven by higher commodity prices, a strengthening Canadian dollar, and improved pricing (yield) in collection and disposal services. While overall volumes declined by 4.9%, this was an improvement from the prior year's decline. Income from operations rose by 10.8% to $412 million, and net income attributable to Waste Management, Inc. increased to $182 million, or $0.37 per diluted share, up from $155 million, or $0.31 per diluted share, in the prior year. The company highlighted discipline in pricing and cost control as key factors for the improved performance, despite challenges such as ongoing weakness in industrial collection volumes, rising fuel costs, and severe winter weather impacting operations. A notable non-recurring charge of $28 million was incurred due to withdrawals from an underfunded multi-employer pension plan. The company also continues to invest in strategic growth initiatives, including a 40% equity investment in Shanghai Environment Group and an expected acquisition of a waste-to-energy facility in Virginia.
Financial Highlights
48 data points| Revenue | $2.94B |
| SG&A Expenses | $351.00M |
| Operating Expenses | $2.52B |
| Operating Income | $412.00M |
| Net Income | $182.00M |
| EPS (Basic) | $0.37 |
| EPS (Diluted) | $0.37 |
| Shares Outstanding (Basic) | 485.60M |
| Shares Outstanding (Diluted) | 488.10M |
Key Highlights
- 1Revenue increased by 4.4% to $2,935 million, driven by higher commodity prices and improved pricing.
- 2Income from operations increased by 10.8% to $412 million, with operating margin improving to 14.0% from 13.2%.
- 3Net income attributable to Waste Management, Inc. rose to $182 million, or $0.37 per diluted share, an increase from $155 million, or $0.31 per diluted share, in Q1 2009.
- 4Volume declines improved year-over-year, with a 4.9% decrease in Q1 2010 compared to an 8.1% decrease in Q1 2009.
- 5The company made a significant strategic investment of $142 million for a 40% equity stake in Shanghai Environment Group.
- 6Free cash flow was $253 million for the quarter, up from $199 million in the prior year period.
- 7Operating expenses as a percentage of revenue increased to 64.1% from 61.4%, primarily due to higher recyclable commodity prices, fuel costs, and acquisitions.