Summary
Waste Management Inc. (WM) reported a strong first quarter in 2016, demonstrating significant improvement compared to the same period in the prior year. The company's operating revenues increased by 4.5% year-over-year, reaching $3.176 billion, driven by a combination of strategic acquisitions, positive yield management in its core collection and disposal operations, and increased volumes. This revenue growth, coupled with effective cost management leading to margin expansion, resulted in a substantial increase in income from operations to $508 million. The most notable financial improvement is the shift from a net loss of $129 million in Q1 2015 to a net income of $258 million in Q1 2016. This turnaround was significantly impacted by the absence of a large debt extinguishment loss that occurred in the prior year, but also reflects the company's improved operational performance. The company also generated robust free cash flow of $402 million, supporting its capital allocation strategies, including share repurchases and dividend payments.
Financial Highlights
54 data points| Revenue | $3.18B |
| Cost of Revenue | $1.99B |
| Gross Profit | $1.18B |
| SG&A Expenses | $362.00M |
| Operating Expenses | $2.67B |
| Operating Income | $508.00M |
| Net Income | $258.00M |
| EPS (Basic) | $0.58 |
| EPS (Diluted) | $0.58 |
| Shares Outstanding (Basic) | 446.10M |
| Shares Outstanding (Diluted) | 448.60M |
Key Highlights
- 1Operating revenues increased by 4.5% to $3.176 billion, driven by acquisitions, yield management, and volume growth.
- 2Net income attributable to Waste Management, Inc. swung from a loss of $129 million in Q1 2015 to a profit of $258 million in Q1 2016.
- 3Income from operations rose by 15.5% to $508 million, reflecting improved operational efficiency and revenue growth.
- 4Free cash flow for the quarter was $402 million, up from $285 million in the prior year's comparable period.
- 5The company completed the acquisition of Southern Waste Systems/Sun Recycling (SWS) for $525 million, funded by borrowings.
- 6Waste Management repurchased $250 million of its common stock during the quarter.
- 7The company reported strong liquidity with $104 million in cash and cash equivalents and significant available capacity under its revolving credit facility.