Waste Management Shows Profitable First Quarter
Dailycsr.com – 29 April 2016 – Waste Management, Inc. released its quarter’s financial results that ended on the 31st March 2016. The revenue collected for this period was “$3.2 billion” while in the respective quarter of last year, company’s revenue accounted for $3.0 billion”. The net income rested at “$258 million” which is equivalent of “$0.58 per diluted share”, while the previous year’s data show a “net loss of $129 million, or $0.28 per diluted share” in the same quarter of 2015.
In a commented the C.E.O and also the President of Waste Management, David P. Steiner, said:
“We achieved strong first quarter results and exceeded our internal targets in virtually every metric, including revenue, earnings, margins and cash flow. On an as-adjusted basis, we saw earnings growth of over 18%.(b) Revenue grew 4.5%, and our total company volumes turned positive for the first time since 2012. Our pricing programs resulted in core price of 5.3%, a 90 basis point improvement from the first quarter of 2015, and we achieved increased price in each line of business.(c) We also continued to see progress in our cost programs. This led to us exceeding our targets for operating EBITDA and free cash flow.”(d) (sic)
Moreover, BusinessWire enlists the key highlights for the first quarter of 2016:
In a commented the C.E.O and also the President of Waste Management, David P. Steiner, said:
“We achieved strong first quarter results and exceeded our internal targets in virtually every metric, including revenue, earnings, margins and cash flow. On an as-adjusted basis, we saw earnings growth of over 18%.(b) Revenue grew 4.5%, and our total company volumes turned positive for the first time since 2012. Our pricing programs resulted in core price of 5.3%, a 90 basis point improvement from the first quarter of 2015, and we achieved increased price in each line of business.(c) We also continued to see progress in our cost programs. This led to us exceeding our targets for operating EBITDA and free cash flow.”(d) (sic)
Moreover, BusinessWire enlists the key highlights for the first quarter of 2016:
- “Overall revenue increased by 4.5%, or $136 million. The revenue increase was driven by positive yield and volume in the Company’s collection and disposal business of $118 million. Acquisitions net of divestitures also contributed $81 million of revenue to the current quarter. These increases were partially offset by $32 million in lower fuel surcharge revenue, $18 million in foreign currency fluctuations, and $13 million in lower recycling revenues.
- “Core price, which consists of price increases net of rollbacks and fees, other than the Company’s fuel surcharge, was 5.3%, up from 4.4% in the first quarter of 2015.
- “Internal revenue growth from yield for collection and disposal operations was 2.6%, an increase of 60 basis points compared to the first quarter of 2015.
- “Traditional solid waste business internal revenue growth from volume was positive 2.4% in the first quarter of 2016, or 1.8% after adjusting for one additional workday in the current quarter. Total Company internal revenue growth from volume grew 1.9% in the first quarter and was 1.3% on a workday adjusted basis.
- “Average recycling commodity prices were approximately 12.0% lower in the first quarter of 2016 than in the prior year period. Recycling volumes increased 3.1% in the first quarter. Results in the Company’s recycling line of business improved by almost $0.02 per diluted share when compared to the prior year period.
- “As a percent of revenue, operating expenses were 62.8% in the first quarter of 2016, as compared to 64.0% in the first quarter of 2015.
- “As a percent of revenue, SG&A expenses were 11.4% in the first quarter of 2016, which is flat when compared to the first quarter of 2015.
- “Net cash provided by operating activities was $706 million, compared to $499 million in the first quarter of 2015, an increase of over 40%. As a result of obtaining new Canadian dollar debt financing, the Company terminated its cross currency hedge during the first quarter of 2016. This resulted in a $67 million benefit to cash flow from operating activities and a negative $0.01 per diluted share impact to earnings.
- “Capital expenditures were $317 million, an increase of $84 million compared to 2015. The increase was due to an intentional change in the timing of our truck purchases, and the Company still expects full-year capital expenditures to be between $1.3 and $1.4 billion.
- “The Company had $13 million of proceeds from the sale of assets and businesses in the quarter, $6 million less than the first quarter of 2015.
- “Free cash flow improved to $402 million in the first quarter of 2016, an increase of $117 million when compared to free cash flow for the first quarter of 2015.(b)
- “The Company returned $433 million to shareholders during the first quarter, paying $183 million in dividends and repurchasing $250 million of its common stock.
- “The effective tax rate was approximately 35.4%, slightly above the Company’s expected full-year tax rate of 35%. The increase was due to the timing of certain items, as the Company still expects its full-year tax rate to be 35%.
On a concluding note, Steiner said:
“The year is off to a strong start driven by the collaboration of our corporate and field teams to drive our initiatives. We expect the momentum to continue through 2016 and expect to meet or exceed our full-year 2016 guidance of adjusted earnings per diluted share between $2.74 and $2.79, and free cash flow of between $1.5 and $1.6 billion.(b) However, before we give a more precise update to our guidance, we want to see the extent of our second quarter seasonal uptick. Consequently, we would provide any adjustments to our guidance with our second quarter 2016 results.” (sic)
References:
http://www.businesswire.com/
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