Summary
Waste Management, Inc. (WM) reported revenues of $3.34 billion for the first quarter of 2013, a slight increase of 1.2% compared to the prior year, largely driven by acquisitions, particularly the recent purchase of Greenstar, and improved pricing (yield) in collection and disposal services. Despite revenue growth, net income attributable to Waste Management, Inc. decreased slightly to $168 million ($0.36 per diluted share) from $171 million ($0.37 per diluted share) in the first quarter of 2012. The company's operational efficiency saw mixed results. While selling, general, and administrative expenses decreased due to restructuring efforts, operating expenses rose due to the Greenstar acquisition. The company also incurred $15 million in pre-tax impairment charges and $8 million in restructuring charges, which negatively impacted earnings per share by $0.03 and $0.01 respectively. Free cash flow significantly improved to $348 million from $102 million in the prior year period, bolstered by lower capital expenditures and a significant decrease in bonus payments. Looking ahead, WM is focused on revenue growth through customer segmentation and acquisitions, cost control, and investment in new technologies. The company's financial performance reflects a steady operational execution, with a focus on extracting value from waste streams and managing costs effectively amidst a competitive market and fluctuating commodity prices.
Financial Highlights
52 data points| Revenue | $3.34B |
| Cost of Revenue | $2.21B |
| Gross Profit | $1.13B |
| SG&A Expenses | $390.00M |
| Operating Expenses | $2.93B |
| Operating Income | $402.00M |
| Net Income | $168.00M |
| EPS (Basic) | $0.36 |
| EPS (Diluted) | $0.36 |
| Shares Outstanding (Basic) | 465.70M |
| Shares Outstanding (Diluted) | 466.50M |
Key Highlights
- 1Total revenues for Q1 2013 increased by 1.2% to $3.34 billion, primarily driven by acquisitions (notably Greenstar) and positive yield on collection and disposal services.
- 2Net income attributable to Waste Management, Inc. saw a slight decrease to $168 million ($0.36/share) from $171 million ($0.37/share) in Q1 2012.
- 3Selling, General, and Administrative (SG&A) expenses decreased by 4.2% due to restructuring and cost control initiatives.
- 4Operating expenses increased by 2.0% largely due to the acquisition of Greenstar, impacting cost of goods sold and labor.
- 5Free cash flow improved significantly to $348 million from $102 million in the prior year, attributed to lower capital expenditures and reduced bonus payments.
- 6The company incurred $15 million in impairment charges and $8 million in restructuring charges, negatively impacting EPS.
- 7Capital expenditures decreased by $113 million year-over-year, reflecting a focus on spending management and timing differences.