8-KEarnings & ResultsExhibits & Filings

WASTE MANAGEMENT INC 8-K Report, Financial Results (Oct 29, 2013)

Filed October 29, 2013For Securities:WM

Summary

Waste Management, Inc. (WM) filed an 8-K on October 29, 2013, to report its financial results for the third quarter ended September 30, 2013. The filing primarily attaches a press release detailing these results and announces a conference call for further discussion. Investors should note the company's emphasis on non-GAAP financial measures, particularly Adjusted Operating EBITDA, which management uses as a key indicator of operating performance, ability to fund dividends and investments, and debt repayment capacity. The reported financial highlights show an increase in operating revenues and income from operations compared to the prior year's third quarter. While the company is utilizing non-GAAP measures to provide a clearer picture of underlying operational trends by excluding certain items like asset impairments and restructuring charges, it's crucial for investors to review the provided reconciliations to understand the adjustments and compare them against GAAP figures. The discussion around Adjusted Operating EBITDA and Adjusted Operating Expense provides management's view on performance trends.

Key Highlights

  • 1Waste Management, Inc. reported its Q3 2013 financial results on October 29, 2013.
  • 2The company's Q3 2013 operating revenues increased to $3,621 million from $3,461 million in Q3 2012.
  • 3Income from operations for Q3 2013 rose to $577 million from $500 million in Q3 2012.
  • 4The report emphasizes the use of non-GAAP financial measures, notably Adjusted Operating EBITDA, which management uses to assess performance.
  • 5Adjusted Operating EBITDA for Q3 2013 was $952 million, up from $906 million in Q3 2012, representing 26.3% of revenues.
  • 6The company provided reconciliations for non-GAAP measures, including Adjusted Operating EBITDA, Adjusted Operating Expense, and Adjusted SG&A Expense, to their most comparable GAAP measures.
  • 7Key adjustments to arrive at Adjusted Operating EBITDA included asset impairments, multiemployer pension plan withdrawals, and restructuring charges.

Frequently Asked Questions

The main purpose of this 8-K filing is to report Waste Management, Inc.'s financial results for the third quarter ended September 30, 2013, and to include the press release that details these results. It also announces a conference call to discuss the findings.

Adjusted Operating EBITDA is a non-GAAP financial measure that excludes certain items management believes are not representative of the company's ongoing performance, such as asset impairments and restructuring charges. The company highlights this measure because management uses it as an indicator of operating performance, ability to pay dividends, fund investments, and repay debt. Investors are encouraged to review the provided reconciliations to understand how this measure is derived from GAAP figures.

Waste Management's operating revenues for the third quarter of 2013 increased to $3,621 million from $3,461 million in the third quarter of 2012. Income from operations also saw an increase, rising to $577 million in Q3 2013 from $500 million in Q3 2012.

The adjustments made to arrive at Adjusted Operating EBITDA for the third quarter of 2013 primarily included asset impairments and unusual items ($23 million), a partial withdrawal from a multiemployer pension plan ($5 million), and restructuring charges ($3 million). In the prior year's third quarter, adjustments included asset impairments and unusual items ($22 million), and restructuring charges ($47 million).