Summary
Waste Management, Inc. (WM) filed an 8-K on October 27, 2011, to announce its financial results for the quarter ended September 30, 2011. The filing includes a press release detailing the company's performance and outlining the use of non-GAAP financial measures. Management intends to discuss these results, including adjusted operating revenues and expenses, on a conference call. Key adjustments highlighted relate to the Oakleaf acquisition and related integration activities, as well as closed site adjustments and changes in risk-free interest rates. Investors should note the company's emphasis on these adjusted metrics for evaluating performance, with reconciliations provided to bridge the gap between GAAP and non-GAAP figures.
Key Highlights
- 1WM announced its Q3 2011 financial results via an 8-K filing on October 27, 2011.
- 2The filing includes a press release detailing the financial performance for the quarter ended September 30, 2011.
- 3The company plans to discuss non-GAAP financial measures, including adjusted operating revenues, adjusted operating expenses as a percent of revenues, and adjusted interest expense.
- 4Adjustments to operating revenues and expenses are significantly influenced by the Oakleaf acquisition and its integration.
- 5Adjusted operating revenues showed a 5.6% increase ($181 million) year-over-year for the quarter.
- 6Adjusted operating expenses as a percent of revenues improved to 63.2% in Q3 2011 from 61.4% in Q3 2010, despite the Oakleaf acquisition.
- 7Adjusted interest expense decreased slightly by $9 million year-over-year.
Frequently Asked Questions
The main purpose of this 8-K filing is to announce Waste Management, Inc.'s financial results for the quarter ended September 30, 2011, and to provide investors with access to the related press release and details on non-GAAP financial measures used by management.
Waste Management is highlighting adjusted operating revenues, adjusted operating expenses as a percent of revenues, and adjusted interest expense. These measures are presented to offer investors a clearer view of operational performance by excluding certain items.
The Oakleaf acquisition had a significant impact on the adjustments made to operating revenues and expenses. The company excluded $106 million in operating revenues and $94 million in operating expenses related to the Oakleaf acquisition and its integration when calculating the adjusted figures. This adjustment is crucial for understanding the underlying operational performance.
For the quarter ended September 30, 2011, adjusted operating revenues increased by $181 million, or 5.6%, compared to the same period in the prior year. This indicates a positive underlying revenue growth trend for the company.