Summary
Waste Management, Inc. (WM) reported its third-quarter and year-to-date financial results for the period ending September 30, 2014. Total revenues saw a slight decrease of 0.5% year-over-year for the quarter, primarily due to lower volumes and divestitures, partially offset by increased yield on collection and disposal operations. Net income attributable to Waste Management, Inc. decreased to $270 million ($0.58 per diluted share) from $291 million ($0.62 per diluted share) in the prior year's quarter, impacted by restructuring charges and litigation reserves. The company is actively managing its portfolio, notably through the pending sale of its Wheelabrator business, which has been classified as held-for-sale. Free cash flow remained robust, demonstrating the company's ability to generate cash from operations.
Financial Highlights
53 data points| Revenue | $3.60B |
| Cost of Revenue | $2.30B |
| Gross Profit | $1.30B |
| SG&A Expenses | $377.00M |
| Operating Expenses | $3.06B |
| Operating Income | $546.00M |
| Net Income | $270.00M |
| EPS (Basic) | $0.59 |
| EPS (Diluted) | $0.58 |
| Shares Outstanding (Basic) | 460.80M |
| Shares Outstanding (Diluted) | 463.60M |
Key Highlights
- 1Total revenues for the third quarter of 2014 were $3,602 million, a slight decrease of 0.5% compared to $3,621 million in the third quarter of 2013.
- 2Net income attributable to Waste Management, Inc. decreased to $270 million for the quarter, down from $291 million in the prior year's quarter, with diluted earnings per share at $0.58 compared to $0.62.
- 3The company recognized $67 million in pre-tax charges related to a corporate restructuring and an additional $20 million in charges for litigation reserves and investment write-downs, negatively impacting quarterly earnings per share.
- 4The pending sale of the Wheelabrator business, announced in July 2014, is progressing, with the business classified as 'Businesses held-for-sale' on the balance sheet.
- 5Free cash flow remained strong, totaling $1,349 million for the nine months ended September 30, 2014, compared to $1,147 million in the same period of 2013.
- 6The company repurchased $600 million of its common stock through accelerated share repurchase agreements during the third quarter of 2014.
- 7Cash and cash equivalents increased significantly to $183 million from $58 million at the beginning of the year, indicating improved liquidity.