Summary
Waste Management, Inc. (WM) filed an 8-K on February 12, 2009, to announce its financial results for the fiscal quarter and full year ended December 31, 2008. The report includes a press release detailing these results and information about an upcoming conference call for investors. A key focus of the release is the impact of the volatile recycling commodity markets on the company's performance, with management providing both reported and adjusted financial figures to offer a clearer view of operational results.
Key Highlights
- 1Waste Management (WM) announced fourth quarter and full-year 2008 results on February 12, 2009.
- 2The company is holding a conference call and webcast to discuss these results, with replays available.
- 3WM is presenting both GAAP and non-GAAP (adjusted) financial measures to provide a clearer operational view.
- 4Significant emphasis is placed on the negative impact of lower recycling commodity prices and demand on the company's financial performance.
- 5Adjusted net income for Q4 2008 was $241 million ($0.49 per share), compared to $276 million ($0.54 per share) in Q4 2007.
- 6Further adjusted net income, excluding the negative impact of recycling, was $279 million ($0.57 per share) for Q4 2008.
- 7Adjusted operating margin for the full year 2008 was 17.1%, largely in line with 16.9% in 2007.
Frequently Asked Questions
For the quarter ended December 31, 2008, Waste Management reported net income of $218 million, or $0.44 per diluted share. On an adjusted basis, excluding certain items, net income was $241 million, or $0.49 per diluted share. Further adjusted for the impact of recycling, net income was $279 million, or $0.57 per diluted share.
The company explicitly states that lower prices and demand for recycling commodities had a negative impact on its results. They provided 'further adjusted' figures to show performance without this specific market effect, highlighting its significance to investors.
Waste Management provides adjusted figures to exclude items they believe are not indicative of ongoing operational performance. This allows investors to view the business and evaluate performance without the impact of specific costs like multi-employer pension withdrawal costs, changes in landfill operating costs, or effects from divestitures and restructuring.
The adjusted income from operations as a percentage of revenues was 17.1% for the full year 2008, which is slightly higher than the 16.9% reported for the full year 2007. This indicates stable operational profitability on an adjusted basis despite market challenges.