Waste Management increases revenues in Q1

Waste Management increases revenues in Q1
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Waste Management Inc., Houston, has announced financial results for its quarter ended March 31, 2017. Revenues for the first quarter of 2017 were $3.44 billion compared with $3.18 billion for the same 2016 period. Net income for the quarter was $298 million, or $0.67 per diluted share, compared with $258 million, or $0.58 per diluted share, for the first quarter of 2016. On an as-adjusted basis, excluding certain items, net income was $291 million, or $0.66 per diluted share, in the first quarter of 2017.

The company’s as-adjusted first quarter 2017 results exclude a $0.07 per diluted share tax benefit related to equity-based compensation and a non-cash charge of $0.06 per diluted share related to the impairment of an equity investment in a waste diversion technology company.

Jim Fish, president and CEO of Waste Management, commented, “We are pleased with our strong first quarter results, as we met or exceeded all of our internal targets. On an as-adjusted basis, we saw earnings growth of almost 14 percent. Operating EBITDA grew 8 percent due to strength in both our traditional solid waste business and our recycling business, which in turn drove strong first quarter cash flows. This performance led to us exceeding our internal targets for operating EBITDA and free cash flow.”

Key highlights for the first quarter 2017, include:

Overall revenue increased by 8.3 percent, or $264 million. The revenue increase was driven by positive yield and volumein the Company’s collection and disposal business, which contributed $113 million to revenue growth, and significantly higher recycling commodity prices, which contributed $111 million of revenue growth.

• Core price, which consists of price increases net of rollbacks, plus fees other than the Company’s fuel surcharge, was 5.1 percent.
• Internal revenue growth from yield for collection and disposal operations was 2.0 percent.
• For both the total company and the traditional solid waste business, internal revenue growth from volume was positive 1.9 percent in the first quarter of 2017, or 1.4 percent after adjusting for one additional workday in the current quarter.
• Average recycling commodity prices at the company’s recycling facilities were almost 70 percent higher in the first quarter of 2017 than in the prior year period. Results in the Company’s recycling line of business improved by $0.066 per diluted share when compared to the prior year period.
• As a percent of revenue, operating expenses were 63.0 percent in the first quarter of 2017, as compared to 62.8 percent in the first quarter of 2016. Increased recycling commodity rebates and fuel costs drove the increase in operating expenses as a percent of revenue. Fuel costs were a negative $0.02 per diluted share when compared to the prior year period.
• As a percent of revenue, SG&A expenses were 11.3 percent in the first quarter of 2017, which is a 10 basis point improvement when compared to the first quarter of 2016. First quarter 2017 SG&A expenses include a negative $0.02 per diluted share impact related to executive severance.
• Net cash provided by operating activities was $721 million, compared to $732 million in the first quarter of 2016. The first quarter of 2016 included a $67 million benefit from terminating a cross-currency hedge.
• Capital expenditures were $332 million, an increase of $15 million compared to 2016.
• Free cash flow was $396 million in the first quarter of 2017, compared to $428 million in the first quarter of 2016.
• The company returned $194 million to shareholders during the first quarter in dividends.
• The effective tax rate was approximately 31.7 percent. Adjusting for the items noted in the company’s as-adjusted earnings, the tax rate would have been approximately 36.8 percent.

Fish adds, “Our strong start to 2017 gives us early confidence that we are on track to meet our full-year 2017 guidance of adjusted earnings per diluted share of between $3.14 and $3.18 and free cash flow of between $1.5 and $1.6 billion. As in previous years, we will wait to see the extent of the anticipated seasonal upturn in our business before reevaluating our guidance. Our employees have continued to deliver strong performance, and the first quarter sets us up for another successful year.”

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Source: Recycling Today
Waste Management increases revenues in Q1
<![CDATA[Waste Management Inc., Houston, has announced financial results for its quarter ended March 31, 2017. Revenues for the first quarter of 2017 were $3.44 billion compared with $3.18 billion for the same 2016 period. Net income for the quarter was $298 million, or $0.67 per diluted share, compared with $258 million, or $0.58 per diluted share, for the first quarter of 2016. On an as-adjusted basis, excluding certain items, net income was $291 million, or $0.66 per diluted share, in the first quarter of 2017. The company’s as-adjusted first quarter 2017 results exclude a $0.07 per diluted share tax benefit related to equity-based compensation and a non-cash charge of $0.06 per diluted share related to the impairment of an equity investment in a waste diversion technology company. Jim Fish, president and CEO of Waste Management, commented, “We are pleased with our strong first quarter results, as we met or exceeded all of our internal targets. On an as-adjusted basis, we saw earnings growth of almost 14 percent. Operating EBITDA grew 8 percent due to strength in both our traditional solid waste business and our recycling business, which in turn drove strong first quarter cash flows. This performance led to us…