8-KEarnings & ResultsExhibits & Filings

WASTE MANAGEMENT INC 8-K Report, Financial Results (Apr 29, 2010)

Filed April 29, 2010For Securities:WM

Summary

Waste Management, Inc. (WM) filed an 8-K on April 29, 2010, to report its first-quarter 2010 financial results and provide forward-looking guidance. The report highlights the company's financial performance for the quarter ended March 31, 2010, and includes a discussion of certain non-GAAP financial measures used by management. Investors should note the company's focus on adjusted operating expenses and projected free cash flow for the full year. The press release, attached as Exhibit 99.1, details operating revenues of $2,935 million and operating expenses of $1,881 million for the quarter, resulting in operating expenses as a percentage of revenues of 64.1%. The company also provides an adjusted view of operating expenses, excluding a $28 million impact from the withdrawal from a multi-employer pension plan, bringing the adjusted operating expense ratio to 63.1%. Furthermore, Waste Management projects full-year 2010 free cash flow to be in the range of $1,200 million to $1,300 million.

Key Highlights

  • 1Waste Management, Inc. reported first-quarter 2010 results via an 8-K filing on April 29, 2010.
  • 2The company's reported operating revenues for the quarter ended March 31, 2010, were $2,935 million.
  • 3Operating expenses for the quarter were reported at $1,881 million, representing 64.1% of revenues.
  • 4Management provided an adjusted view of operating expenses, excluding a $28 million impact from a multi-employer pension plan withdrawal, resulting in an adjusted expense ratio of 63.1%.
  • 5The company projects full-year 2010 free cash flow to be between $1,200 million and $1,300 million.
  • 6The filing indicates that non-GAAP financial measures are used to provide investors with a better understanding of the company's performance.
  • 7A conference call and webcast were held on April 29, 2010, to discuss these results.

Frequently Asked Questions

The main purpose of this 8-K filing is to report Waste Management's financial results for the quarter ended March 31, 2010, and to provide forward-looking guidance, specifically on projected free cash flow for the full year 2010. It also informs investors about the use of certain non-GAAP financial measures.

For the quarter ended March 31, 2010, Waste Management reported operating revenues of $2,935 million and operating expenses of $1,881 million, leading to an operating expense ratio of 64.1%. The company also presented an adjusted operating expense ratio of 63.1%, after excluding a $28 million charge related to the withdrawal from a multi-employer pension plan.

Waste Management projects its full-year 2010 free cash flow to be in the range of $1,200 million to $1,300 million. This figure is derived from net cash provided by operating activities, reduced by capital expenditures and increased by proceeds from divestitures and other asset sales.

Waste Management uses non-GAAP financial measures, such as adjusted operating expenses and free cash flow, because management believes they provide investors with a clearer view of the company's ongoing operational performance. Specifically, adjusting for the pension plan withdrawal aims to exclude a non-operational item that is not representative of core business expenses, and free cash flow highlights cash available for strategic uses after necessary investments.