8-KEarnings & ResultsExhibits & Filings

WASTE MANAGEMENT INC 8-K Report, Financial Results (Feb 16, 2012)

Filed February 16, 2012For Securities:WM

Summary

Waste Management, Inc. (WM) filed an 8-K on February 16, 2012, to report its financial results for the fourth quarter and full year ended December 31, 2011. The filing primarily serves to attach the press release announcing these results and provides a reconciliation of certain non-GAAP financial measures used by management to present performance. Investors should note that the company is discussing adjusted operating revenues, adjusted operating expenses, and adjusted SG&A expenses to offer a clearer view of operational performance, excluding items they deem not representative. Key financial takeaways highlighted in the reconciliation indicate that "adjusted operating revenues" increased by 2.3% in Q4 2011 compared to Q4 2010, reaching $3,261 million. "Adjusted operating expenses" also saw an increase of $70 million, though "adjusted operating expenses as a percent of adjusted revenues" improved slightly to 62.0% from 61.2% year-over-year. Furthermore, "adjusted SG&A expenses as a percent of adjusted revenues" improved by 20 basis points to 11.3% in Q4 2011.

Key Highlights

  • 1WM announced Q4 and full-year 2011 financial results via an 8-K filing on February 16, 2012.
  • 2The filing includes a press release (Exhibit 99.1) detailing financial performance for the periods ending December 31, 2011.
  • 3The company is using and explaining several non-GAAP financial measures, including adjusted operating revenues, adjusted operating expenses, and adjusted SG&A expenses.
  • 4Adjusted operating revenues increased by 2.3% ($74 million) in Q4 2011 compared to Q4 2010, reaching $3,261 million.
  • 5Adjusted operating expenses increased by $70 million in Q4 2011 compared to Q4 2010, with adjusted operating expenses as a percentage of adjusted revenues at 62.0% (vs. 61.2% in Q4 2010).
  • 6Adjusted SG&A expenses as a percentage of adjusted revenues improved by 20 basis points to 11.3% in Q4 2011 compared to Q4 2010.
  • 7The adjustments to reported revenues and expenses largely relate to the acquired Oakleaf operations and related integration costs.

Frequently Asked Questions

The primary purpose of this 8-K filing is to officially report Waste Management, Inc.'s financial results for the fourth quarter and full year ended December 31, 2011. It includes a press release with these results and reconciliations of non-GAAP financial measures used by management.

The key non-GAAP measures discussed are adjusted operating revenues, adjusted operating expenses (and as a percent of adjusted revenues), and adjusted SG&A expenses (and as a percent of adjusted revenues). These are presented to help investors evaluate performance by excluding certain items deemed not representative of core operations.

Adjusted operating revenues increased by $74 million, or 2.3%, in the fourth quarter of 2011 compared to the fourth quarter of 2010, reaching $3,261 million.

The adjustments provided indicate that the Oakleaf operations and related integration costs had a notable impact on both revenues and expenses. Specifically, revenues attributable to Oakleaf were adjusted out of the 'as adjusted' revenue figures, and related expenses and integration costs were also excluded from adjusted operating and SG&A expenses.