Summary
Waste Management, Inc. (WM) reported solid financial results for the first quarter of 2017, demonstrating growth in both revenue and net income compared to the prior year period. Total operating revenues increased by 8.3% to $3.44 billion, driven by strong performance in collection and disposal, higher recycling commodity prices, and a favorable yield. Net income attributable to Waste Management, Inc. grew to $298 million, or $0.67 per diluted share, up from $258 million, or $0.58 per diluted share, in the first quarter of 2016. The company also benefited from a significant reduction in income tax expense due to excess tax benefits from equity-based compensation, a change in accounting standard adoption. The company maintained a disciplined approach to capital expenditures and cash flow generation, with free cash flow at $396 million for the quarter. While facing increased operating expenses due to higher recycling commodity costs, fuel prices, and labor, WM effectively managed these pressures through strategic pricing and operational efficiencies. The company's solid operational performance and prudent financial management position it for continued value creation for shareholders.
Financial Highlights
51 data points| Revenue | $3.44B |
| Cost of Revenue | $2.17B |
| Gross Profit | $1.27B |
| SG&A Expenses | $390.00M |
| Operating Expenses | $2.88B |
| Operating Income | $558.00M |
| Net Income | $298.00M |
| EPS (Basic) | $0.68 |
| EPS (Diluted) | $0.67 |
| Shares Outstanding (Basic) | 441.30M |
| Shares Outstanding (Diluted) | 444.10M |
Key Highlights
- 1Operating revenues increased by 8.3% to $3.44 billion, primarily driven by higher recycling commodity prices and yield/volume growth in collection and disposal.
- 2Net income attributable to Waste Management, Inc. rose to $298 million ($0.67/share) from $258 million ($0.58/share) in the prior year.
- 3Free cash flow was $396 million, a decrease from $428 million in the prior year, impacted by lower operating cash flows and higher capital expenditures.
- 4Operating expenses increased by 8.7% to $2.17 billion, largely due to higher costs for recycling commodities, fuel, and labor.
- 5The company benefited from a $32 million reduction in income tax expense due to excess tax benefits related to equity-based compensation under new accounting standards.
- 6Debt levels decreased to $9.04 billion from $9.31 billion at the end of 2016.
- 7The company made a $25 million write-down on an equity method investment in a waste diversion technology company.