8-KEarnings & ResultsExhibits & Filings

WASTE MANAGEMENT INC 8-K Report, Financial Results (Oct 29, 2009)

Filed October 29, 2009For Securities:WM

Summary

Waste Management Inc. (WM) filed an 8-K on October 29, 2009, to report its third-quarter 2009 earnings. The company announced that its reported diluted earnings per share (EPS) for the quarter ended September 30, 2009, were $0.56, a decrease from $0.63 in the prior year period. Management highlighted that the decline was primarily driven by negative market conditions, specifically a drop in commodity prices for recycling operations and lower energy prices affecting its waste-to-energy plants. However, when excluding these external market impacts and certain other adjustments, the company's adjusted diluted EPS was $0.63, which was flat compared to the same period in 2008. This 'as adjusted' figure is presented by management to offer a clearer view of operational performance, separate from the broad economic factors impacting commodity and energy markets. Investors should note the detailed reconciliation provided for these non-GAAP measures.

Key Highlights

  • 1WM reported diluted EPS of $0.56 for Q3 2009, down from $0.63 in Q3 2008.
  • 2The decrease in reported EPS was significantly impacted by lower commodity prices in recycling and reduced energy sales prices.
  • 3Excluding the impact of commodity price declines and energy price changes, adjusted diluted EPS was $0.63, flat year-over-year.
  • 4Management provided non-GAAP financial measures to help investors assess operational performance independent of market volatility.
  • 5The company held a conference call and webcast on October 29, 2009, to discuss these financial results.
  • 6The 8-K filing includes a press release (Exhibit 99.1) detailing the Q3 2009 earnings and financial condition.

Frequently Asked Questions

Waste Management reported diluted earnings per share (EPS) of $0.56 for the quarter ended September 30, 2009. This is a decrease compared to the $0.63 reported in the same quarter of the previous year.

The primary factors that negatively impacted reported earnings were adverse market conditions, specifically a decline in the prices and demand for recycling commodities and a decrease in natural gas prices, which affected electricity sales prices from waste-to-energy plants.

Yes, Waste Management provided an 'as adjusted' diluted EPS figure. When excluding the impacts of market conditions like commodity and energy price declines, the adjusted diluted EPS for Q3 2009 was $0.63, which was the same as the prior year period. Management uses this non-GAAP measure to provide a clearer view of operational performance.

The 8-K filing includes Exhibit 99.1, which is the press release dated October 29, 2009. This press release contains the detailed financial results for the quarter ended September 30, 2009, including reconciliations of non-GAAP measures to their most comparable GAAP measures.