Summary
Waste Management Inc. (WM) reported strong financial performance for the first quarter of 2021, exceeding the prior year's results driven by an increase in operating revenues and improved income from operations. This growth was significantly boosted by the acquisition of Advanced Disposal Services, Inc. (Advanced Disposal), which expanded the company's footprint and customer base, particularly in the Eastern U.S. While overall volumes are still recovering from the impact of COVID-19, the company has seen positive trends in its landfill and industrial/commercial collection businesses. The company demonstrated robust cash flow generation, with net cash provided by operating activities significantly increasing year-over-year. This strong operating performance allowed for substantial returns to shareholders through dividends and share repurchases, alongside continued investment in capital expenditures. WM remains focused on its long-term strategy of focused differentiation and continuous improvement, leveraging its extensive asset network and investing in digital transformation to enhance customer experience and operational efficiency.
Financial Highlights
51 data points| Revenue | $4.11B |
| Cost of Revenue | $2.51B |
| Gross Profit | $1.60B |
| SG&A Expenses | $458.00M |
| Operating Expenses | $3.46B |
| Operating Income | $650.00M |
| Net Income | $421.00M |
| EPS (Basic) | $1.00 |
| EPS (Diluted) | $0.99 |
| Shares Outstanding (Basic) | 422.90M |
| Shares Outstanding (Diluted) | 424.30M |
Key Highlights
- 1Revenue increased by 10.3% to $4.11 billion, primarily driven by the acquisition of Advanced Disposal and higher recycling commodity prices.
- 2Income from operations grew by 13.4% to $650 million, indicating improved profitability and operational leverage.
- 3Net income attributable to Waste Management, Inc. was $421 million, or $0.99 per diluted share, a significant increase from $361 million, or $0.85 per diluted share, in the prior year.
- 4Net cash provided by operating activities surged by 46.4% to $1.12 billion, demonstrating strong cash generation capabilities.
- 5Free cash flow increased substantially to $865 million from $318 million in the prior year, highlighting enhanced financial flexibility.
- 6The company returned $497 million to shareholders through dividends ($247 million) and share repurchases ($250 million), signaling confidence and commitment to shareholder value.
- 7Despite ongoing volume recovery from COVID-19 impacts, the company demonstrated successful integration of Advanced Disposal and maintained cost discipline.