Summary
Waste Management Inc. (WM) reported a notable increase in revenue and net income for the nine months ended September 30, 2013, compared to the same period in the prior year. This growth was primarily driven by strategic acquisitions, including Greenstar LLC and RCI Environnement, Inc., which significantly boosted top-line performance, and by positive revenue yield in its core collection and disposal operations. The company demonstrated strong cost management, with operating expenses as a percentage of revenue remaining stable, and improvements in selling, general, and administrative expenses. Despite facing some headwinds such as lower volumes in certain segments and increased labor costs, WM successfully navigated these challenges. Financially, the company maintained a solid liquidity position, with a substantial increase in free cash flow generated from operations. While capital expenditures saw a decrease, this was largely due to timing and a focused approach to capital spending. The company also strategically managed its debt, with slight net repayments year-to-date, and continued its commitment to returning value to shareholders through dividends. Overall, the report indicates a company executing on its growth strategies through acquisitions and operational efficiency, while managing its financial resources prudently.
Financial Highlights
51 data points| Revenue | $3.62B |
| Cost of Revenue | $2.33B |
| Gross Profit | $1.30B |
| SG&A Expenses | $349.00M |
| Operating Expenses | $3.04B |
| Operating Income | $577.00M |
| Net Income | $291.00M |
| EPS (Basic) | $0.62 |
| EPS (Diluted) | $0.62 |
| Shares Outstanding (Basic) | 469.30M |
| Shares Outstanding (Diluted) | 471.20M |
Key Highlights
- 1Total operating revenues increased by 4.6% to $3,621 million for the third quarter and by 2.6% to $10,483 million for the first nine months of 2013 compared to the prior year periods.
- 2Net income attributable to Waste Management, Inc. rose to $291 million ($0.62 per diluted share) in Q3 2013 from $214 million ($0.46 per diluted share) in Q3 2012. For the nine months, net income increased to $703 million from $593 million.
- 3The company completed two significant acquisitions: Greenstar LLC for $170 million and RCI Environnement, Inc. for approximately $487 million, contributing to revenue growth.
- 4Free cash flow increased significantly to $452 million for the third quarter and $1,147 million for the nine months of 2013, compared to $180 million and $614 million, respectively, in the prior year.
- 5Operating expenses as a percentage of revenue remained stable, indicating effective cost control despite increased acquisition activity and higher labor costs.
- 6Capital expenditures decreased by approximately $308 million for the nine months ended September 30, 2013, compared to the same period in 2012, reflecting improved capital spending management.
- 7The company amended and restated its revolving credit facility, increasing capacity to $2.25 billion and extending the maturity date to July 2018.