Early Access

10-QPeriod: Q2 FY2011

WASTE MANAGEMENT INC Quarterly Report for Q2 Ended Jun 30, 2011

Filed July 28, 2011For Securities:WM

Summary

Waste Management Inc. (WM) reported its second-quarter 2011 financial results, showing a 6.0% increase in operating revenues to $3.35 billion, driven by improved commodity prices, a fuel surcharge program, and acquisitions. Despite revenue growth, net income attributable to Waste Management, Inc. decreased slightly to $237 million ($0.50 per diluted share) from $246 million ($0.51 per diluted share) in the prior year period. This decrease was influenced by a significant litigation settlement benefit in Q2 2010 and higher operating expenses, partly due to increased recycling rebates and fuel costs. The company's free cash flow for the quarter was $206 million, down from $275 million in the prior year, reflecting lower operating cash flow and higher capital expenditures. For the first six months of 2011, net cash provided by operating activities increased to $1.08 billion from $976 million in the prior year, primarily due to decreased income tax payments. The company also announced a significant subsequent event: the acquisition of Oakleaf Global Holdings for $425 million, aimed at expanding its national accounts and environmental solutions capabilities.

Financial Highlights

52 data points
Beta

Revenue

$3.35B

0.4% Gross Margin

Net Income

$237.00M

0.1% Net Margin

EPS (Diluted)

$0.50

Total Assets

$21.58B

Cash & Equivalents

$371.00M

Free Cash Flow

$478.00M

Financial Statements
Beta
Revenue$3.35B
Cost of Revenue$2.14B
Gross Profit$1.21B
SG&A Expenses$382.00M
Operating Expenses$2.84B
Operating Income$506.00M
Net Income$237.00M
EPS (Basic)$0.50
EPS (Diluted)$0.50
Shares Outstanding (Basic)474.20M
Shares Outstanding (Diluted)476.00M

Key Highlights

  • 1Operating revenues increased by 6.0% to $3.35 billion in Q2 2011, driven by higher commodity prices, fuel surcharges, and acquisitions.
  • 2Net income attributable to Waste Management, Inc. decreased slightly to $237 million ($0.50/share) from $246 million ($0.51/share) in Q2 2010.
  • 3Free cash flow for Q2 2011 was $206 million, down from $275 million in Q2 2010.
  • 4Net cash provided by operating activities for the first six months of 2011 increased by $102 million to $1.08 billion, largely due to lower income tax payments.
  • 5The company executed a significant acquisition of Oakleaf Global Holdings for $425 million subsequent to the quarter.
  • 6Internal revenue growth from volume remained negative at -1.7% for Q2 2011, though this was an improvement from -2.9% in Q2 2010.

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