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Press release content from Business Wire. The AP news staff was not involved in its creation.

Waste Management Announces Third Quarter Earnings

October 23, 2019
Waste Management Announces Third Quarter Earnings
Waste Management Announces Third Quarter Earnings

HOUSTON--(BUSINESS WIRE)--Oct 23, 2019--

Waste Management, Inc. (NYSE: WM) today announced financial results for its quarter ended September 30, 2019. Revenues for the third quarter of 2019 were $3.97 billion compared with $3.82 billion for the same 2018 period. Net income for the quarter was $495 million, or $1.16 per diluted share, compared with $499 million, also $1.16 per diluted share, for the third quarter of 2018. (a) On an adjusted basis net income was $502 million, or $1.19 per diluted share, in the third quarter of 2019, compared with $496 million, or $1.15 per diluted share, in the third quarter of 2018. (b)

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20191023005396/en/

2019 Q3 Earnings Overview (Graphic: Business Wire)

The Company’s adjusted third quarter 2019 results exclude a $0.03 per diluted share negative impact from costs incurred in connection with the pending acquisition of Advanced Disposal Services, Inc. and our related reduction of common stock repurchases from planned levels.

“In the third quarter we continued to see our collection and disposal lines of business deliver strong revenue and earnings growth, particularly in the segments of our business that reflect the resilience of the consumer,” said Jim Fish, President and Chief Executive Officer of Waste Management. “This strong operational performance led to growth in cash from operations of almost 9%.

“Another accomplishment in the quarter that we are particularly proud of is our recognition as sector leader on the 2019 North America and World Dow Jones Sustainability Indices for the second year in a row,” Fish continued. “This distinction is a reflection of our leadership in sustainability and recognizes the continued strides we are making in this area.”

KEY HIGHLIGHTS FOR THE THIRD QUARTER OF 2019

Profitability

Revenue Growth

Commodity-Based Businesses

Cost Management

Free Cash Flow & Capital Allocation

Taxes

Fish concluded, “We are pleased with the performance of our collection and disposal business through the first three quarters of the year, which positions us to achieve our full-year goals. Our original 2019 guidance anticipated significantly higher contributions from our commodity-sensitive businesses than we have seen. The strong results from the collection and disposal business have overcome this impact, and we expect to achieve full-year 2019 results within our guidance range of adjusted operating EBITDA of $4.40 to $4.45 billion, free cash flow of $2.025 to $2.075 billion, and adjusted earnings per diluted share of $4.28 to $4.38.” (b)

--------------------------------------------------------------------------------------------------------------

(a)

For purposes of this press release, all references to “Net income” refer to the financial statement line item “Net income attributable to Waste Management, Inc.”

 

(b)

Adjusted earnings per diluted share, adjusted net income, adjusted operating EBITDA, and free cash flow are non-GAAP measures. Please see “Non-GAAP Financial Measures” below and the reconciliations in the accompanying schedules for more information.

 

(c)

Management defines operating EBITDA as GAAP income from operations before depreciation and amortization; this measure may not be comparable to similarly-titled measures reported by other companies.

 

(d)

Core price consists of price increases net of rollbacks and fees, excluding the Company’s fuel surcharge. It is a performance metric used by management to evaluate the effectiveness of our pricing strategies; it is not derived from our financial statements and may not be comparable to measures presented by other companies. Core price is based on certain historical assumptions, which may differ from actual results, to allow for comparability between reporting periods and to reveal trends in results over time.

The Company will host a conference call at 10 a.m. (Eastern) today to discuss the third quarter results. Information contained within this press release will be referenced and should be considered in conjunction with the call.

The conference call will be webcast live from the Investors section of Waste Management’s website www.wm.com. To access the conference call by telephone, please dial (877) 710-6139 approximately 10 minutes prior to the scheduled start of the call. If you are calling from outside of the United States or Canada, please dial (706) 643-7398. Please utilize conference ID number 2572365 when prompted by the conference call operator.

A replay of the conference call will be available on the Company’s website www.wm.com and by telephone from approximately 1:00 PM (Eastern) today through 5:00 PM (Eastern) on Thursday, November 6, 2019. To access the replay telephonically, please dial (855) 859-2056, or from outside of the United States or Canada dial (404) 537-3406 and use the replay conference ID number 2572365.

ABOUT WASTE MANAGEMENT

Waste Management, based in Houston, Texas, is the leading provider of comprehensive waste management environmental services in North America. Through its subsidiaries, the Company provides collection, transfer, disposal services, and recycling and resource recovery. It is also a leading developer, operator and owner of landfill gas-to-energy facilities in the United States. The Company’s customers include residential, commercial, industrial, and municipal customers throughout North America. To learn more information about Waste Management, visit www.wm.com or www.thinkgreen.com.

FORWARD-LOOKING STATEMENTS

The Company, from time to time, provides estimates of financial and other data, comments on expectations relating to future periods and makes statements of opinion, view or belief about current and future events. This press release contains a number of such forward-looking statements, including but not limited to statements regarding 2019 earnings per diluted share; 2019 operating EBITDA; 2019 free cash flow; and all statements regarding future performance of our collection and disposal business, recycling business, renewable energy business or otherwise. You should view these statements with caution. They are based on the facts and circumstances known to the Company as of the date the statements are made. These forward-looking statements are subject to risks and uncertainties that could cause actual results to be materially different from those set forth in such forward-looking statements, including but not limited to, increased competition; pricing actions; failure to implement our optimization, growth, and cost savings initiatives and overall business strategy; failure to identify acquisition targets and negotiate attractive terms; failure to consummate or integrate the acquisition of Advanced Disposal Services, Inc. or other acquisitions; failure to obtain the results anticipated from the acquisition of Advanced Disposal Services, Inc. or other acquisitions; environmental and other regulations; commodity price fluctuations; international trade restrictions; disposal alternatives and waste diversion; declining waste volumes; failure to develop and protect new technology; failure of technology to perform as expected; preventing, detecting and addressing cybersecurity incidents; significant environmental or other incidents resulting in liabilities and brand damage; weakness in economic conditions; failure to obtain and maintain necessary permits; labor disruptions; impairment charges; and negative outcomes of litigation or governmental proceedings. Please also see the Company’s filings with the SEC, including Part I, Item 1A of the Company’s most recently filed Annual Report on Form 10-K as updated by our subsequent quarterly reports on Form 10-Q, for additional information regarding these and other risks and uncertainties applicable to its business. The Company assumes no obligation to update any forward-looking statement, including financial estimates and forecasts, whether as a result of future events, circumstances or developments or otherwise.

NON-GAAP FINANCIAL MEASURES

To supplement its financial information, the Company has presented, and/or may discuss on the conference call, adjusted earnings per diluted share, adjusted net income, adjusted operating EBITDA, adjusted SG&A expenses and free cash flow, as well as projections of adjusted earnings per diluted share, adjusted operating EBITDA, adjusted SG&A expenses as a percentage of revenue, adjusted tax rate, and free cash flow; these are non-GAAP financial measures, as defined in Regulation G of the Securities Exchange Act of 1934, as amended. The Company reports its financial results in compliance with GAAP but believes that also discussing non-GAAP measures provides investors with (i) financial measures the Company uses in the management of its business and (ii) additional, meaningful comparisons of current results to prior periods’ results by excluding items that the Company does not believe reflect its fundamental business performance and are not representative or indicative of its results of operations.

The Company’s non-GAAP results and projections exclude the impact of costs incurred in connection with the pending acquisition of Advanced Disposal Services, Inc. and our related reduction of common stock repurchases from planned levels. In addition, the Company’s projected full year 2019 earnings per diluted share, SG&A expenses as a percentage of revenue, operating EBITDA and tax rate are anticipated to exclude the effects of other events or circumstances in 2019 that are not representative or indicative of the Company’s results of operations. Such excluded items are not currently determinable, but may be significant, such as asset impairments and one-time items, charges, gains or losses from divestitures or litigation, and other items. Due to the uncertainty of the likelihood, amount and timing of any such items, the Company does not have information available to provide a quantitative reconciliation of such projections to the comparable GAAP measures.

The Company discusses free cash flow because the Company believes that it is indicative of its ability to pay its quarterly dividends, repurchase common stock, fund acquisitions and other investments and, in the absence of refinancings, to repay its debt obligations. Free cash flow is not intended to replace “Net cash provided by operating activities,” which is the most comparable GAAP measure. The Company believes free cash flow gives investors useful insight into how the Company views its liquidity, but the use of free cash flow as a liquidity measure has material limitations because it excludes certain expenditures that are required or that the Company has committed to, such as declared dividend payments and debt service requirements. The Company defines free cash flow as net cash provided by operating activities, less capital expenditures, plus proceeds from divestitures of businesses and other assets (net of cash divested); this definition may not be comparable to similarly-titled measures reported by other companies.

The quantitative reconciliations of non-GAAP measures used herein to the most comparable GAAP measures are included in the accompanying schedules, with the exception of projected earnings per diluted share, projected SG&A expenses, projected operating EBITDA, and projected tax rate. Non-GAAP measures should not be considered a substitute for financial measures presented in accordance with GAAP.

WASTE MANAGEMENT, INC.

 

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In Millions, Except per Share Amounts)
(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

September 30,

 

September 30,

 

 

2019

 

2018

 

2019

 

2018

Operating revenues

 

$

3,967

 

$

3,822

 

$

11,609

 

$

11,072

Costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Operating

 

 

2,441

 

 

2,373

 

 

7,182

 

 

6,870

Selling, general and administrative

 

 

386

 

 

345

 

 

1,186

 

 

1,083

Depreciation and amortization

 

 

404

 

 

376

 

 

1,179

 

 

1,107

Restructuring

 

 

1

 

 

1

 

 

3

 

 

4

(Gain) loss from divestitures, asset impairments and unusual items, net

 

 

1

 

 

28

 

 

8

 

 

(14)

 

 

 

3,233

 

 

3,123

 

 

9,558

 

 

9,050

Income from operations

 

 

734

 

 

699

 

 

2,051

 

 

2,022

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

 

(105)

 

 

(93)

 

 

(301)

 

 

(277)

Loss on early extinguishment of debt

 

 

(1)

 

 

 

 

(85)

 

 

Equity in net losses of unconsolidated entities

 

 

(14)

 

 

(9)

 

 

(39)

 

 

(29)

Other, net

 

 

1

 

 

 

 

(52)

 

 

1

 

 

 

(119)

 

 

(102)

 

 

(477)

 

 

(305)

Income before income taxes

 

 

615

 

 

597

 

 

1,574

 

 

1,717

Income tax expense

 

 

120

 

 

99

 

 

350

 

 

325

Consolidated net income

 

 

495

 

 

498

 

 

1,224

 

 

1,392

Less: Net income (loss) attributable to noncontrolling interests

 

 

 

 

(1)

 

 

1

 

 

(2)

Net income attributable to Waste Management, Inc.

 

$

495

 

$

499

 

$

1,223

 

$

1,394

Basic earnings per common share

 

$

1.17

 

$

1.16

 

$

2.88

 

$

3.24

Diluted earnings per common share

 

$

1.16

 

$

1.16

 

$

2.86

 

$

3.22

Weighted average basic common shares outstanding

 

 

424.5

 

 

427.9

 

 

424.6

 

 

430.3

Weighted average diluted common shares outstanding

 

 

427.4

 

 

430.8

 

 

427.4

 

 

433.2

WASTE MANAGEMENT, INC.

 

CONDENSED CONSOLIDATED BALANCE SHEETS
(In Millions)
(Unaudited)

 

 

 

 

 

 

 

 

 

September 30,

 

December 31,

 

 

2019

 

2018

ASSETS

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

2,915

 

$

61

Receivables, net

 

 

2,280

 

 

2,275

Other

 

 

365

 

 

309

Total current assets

 

 

5,560

 

 

2,645

Property and equipment, net

 

 

12,805

 

 

11,942

Goodwill

 

 

6,550

 

 

6,430

Other intangible assets, net

 

 

543

 

 

572

Other

 

 

1,651

 

 

1,061

Total assets

 

$

27,109

 

$

22,650

LIABILITIES AND EQUITY

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable, accrued liabilities and deferred revenues

 

$

2,778

 

$

2,676

Current portion of long-term debt

 

 

211

 

 

432

Total current liabilities

 

 

2,989

 

 

3,108

Long-term debt, less current portion

 

 

13,147

 

 

9,594

Other

 

 

4,186

 

 

3,672

Total liabilities

 

 

20,322

 

 

16,374

Equity:

 

 

 

 

 

 

Waste Management, Inc. stockholders’ equity

 

 

6,785

 

 

6,275

Noncontrolling interests

 

 

2

 

 

1

Total equity

 

 

6,787

 

 

6,276

Total liabilities and equity

 

$

27,109

 

$

22,650

WASTE MANAGEMENT, INC.

 

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Millions)
(Unaudited)

 

 

 

 

 

 

 

 

 

Nine Months Ended

 

 

September 30,

 

 

2019

 

2018

Cash flows from operating activities:

 

 

 

 

 

 

Consolidated net income

 

$

1,224

 

$

1,392

Adjustments to reconcile consolidated net income to net cash provided by operating activities:

 

 

 

 

 

 

Depreciation and amortization

 

 

1,179

 

 

1,107

Loss on early extinguishment of debt

 

 

85

 

 

Other

 

 

289

 

 

131

Change in operating assets and liabilities, net of effects of acquisitions and divestitures

 

 

75

 

 

28

Net cash provided by operating activities

 

 

2,852

 

 

2,658

Cash flows from investing activities:

 

 

 

 

 

 

Acquisitions of businesses, net of cash acquired

 

 

(513)

 

 

(342)

Capital expenditures

 

 

(1,532)

 

 

(1,240)

Proceeds from divestitures of businesses and other assets (net of cash divested)

 

 

29

 

 

106

Other, net

 

 

(80)

 

 

(30)

Net cash used in investing activities

 

 

(2,096)

 

 

(1,506)

Cash flows from financing activities:

 

 

 

 

 

 

New borrowings

 

 

4,558

 

 

174

Debt repayments

 

 

(502)

 

 

(338)

Premiums paid on early extinguishment of debt

 

 

(84)

 

 

Net commercial paper borrowings (repayments)

 

 

(1,001)

 

 

523

Common stock repurchase program

 

 

(248)

 

 

(750)

Cash dividends

 

 

(658)

 

 

(605)

Exercise of common stock options

 

 

60

 

 

45

Tax payments associated with equity-based compensation transactions

 

 

(32)

 

 

(28)

Other, net

 

 

(13)

 

 

(36)

Net cash provided by (used in) financing activities

 

 

2,080

 

 

(1,015)

Effect of exchange rate changes on cash, cash equivalents and restricted cash and cash equivalents

 

 

1

 

 

Increase (decrease) in cash, cash equivalents and restricted cash and cash equivalents

 

 

2,837

 

 

137

Cash, cash equivalents and restricted cash and cash equivalents at beginning of period

 

 

183

 

 

293

Cash, cash equivalents and restricted cash and cash equivalents at end of period

 

$

3,020

 

$

430

WASTE MANAGEMENT, INC.

 

SUMMARY DATA SHEET

(In Millions)

(Unaudited)

Operating Revenues by Line of Business

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

September 30,

 

September 30,

 

 

2019

 

2018

 

2019

 

2018

Commercial

 

$

1,069

 

$

1,007

 

$

3,147

 

$

2,948

Residential

 

 

661

 

 

639

 

 

1,956

 

 

1,885

Industrial

 

 

766

 

 

723

 

 

2,190

 

 

2,068

Other

 

 

130

 

 

117

 

 

361

 

 

333

Total collection

 

 

2,626

 

 

2,486

 

 

7,654

 

 

7,234

Landfill

 

 

993

 

 

926

 

 

2,880

 

 

2,646

Transfer

 

 

471

 

 

445

 

 

1,357

 

 

1,257

Recycling

 

 

245

 

 

337

 

 

800

 

 

954

Other

 

 

469

 

 

430

 

 

1,345

 

 

1,296

Intercompany (a)

 

 

(837)

 

 

(802)

 

 

(2,427)

 

 

(2,315)

Total

 

$

3,967

 

$

3,822

 

$

11,609

 

$

11,072

Internal Revenue Growth

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Period-to-Period Change for the Three Months

Ended September 30, 2019 vs. 2018

 

 

 

Period-to-Period Change for the Nine Months

Ended September 30, 2019 vs. 2018

 

 

 

 

 

 

As a % of

 

 

 

 

 

As a % of

 

 

 

 

 

As a % of

 

 

 

 

 

As a % of

 

 

 

 

 

 

Related

 

 

 

 

 

Total

 

 

 

 

 

Related

 

 

 

 

 

Total

 

 

 

Amount

 

Business(b)

 

 

Amount

 

Company(c)

 

 

Amount

 

Business(b)

 

 

Amount

 

Company(c)

 

Collection and disposal

 

$

87

 

2.6

%

 

 

 

 

 

 

 

$

256

 

2.7

%

 

 

 

 

 

 

Recycling commodities

 

 

(73)

 

(22.6)

 

 

 

 

 

 

 

 

 

(139)

 

(15.3)

 

 

 

 

 

 

 

Fuel surcharges and mandated fees

 

 

(10)

 

(6.3)

 

 

 

 

 

 

 

 

 

(3)

 

(0.7)

 

 

 

 

 

 

 

Total average yield (d)

 

 

 

 

 

 

 

$

4

 

0.1

%

 

 

 

 

 

 

 

$

114

 

1.0

%

Volume

 

 

 

 

 

 

 

 

98

 

2.6

 

 

 

 

 

 

 

 

 

361

 

3.3

 

Internal revenue growth

 

 

 

 

 

 

 

 

102

 

2.7

 

 

 

 

 

 

 

 

 

475

 

4.3

 

Acquisitions

 

 

 

 

 

 

 

 

57

 

1.5

 

 

 

 

 

 

 

 

 

173

 

1.6

 

Divestitures

 

 

 

 

 

 

 

 

(12)

 

(0.3)

 

 

 

 

 

 

 

 

 

(94)

 

(0.9)

 

Foreign currency translation

 

 

 

 

 

 

 

 

(2)

 

(0.1)

 

 

 

 

 

 

 

 

 

(17)

 

(0.1)

 

Total

 

 

 

 

 

 

 

$

145

 

3.8

%

 

 

 

 

 

 

 

$

537

 

4.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Period-to-Period Change for the Three Months
Ended September 30, 2019 vs. 2018

 

 

Period-to-Period Change for the Nine Months
Ended September 30, 2019 vs. 2018

 

 

 

As a % of Related Business(b)

 

 

As a % of Related Business(b)

 

 

 

Yield

 

Volume(e)

 

 

Yield

 

Volume

 

Commercial

 

2.5

%

3.2

%

 

2.4

%

2.8

%

Industrial

 

3.8

 

1.2

 

 

4.0

 

1.8

 

Residential

 

3.2

 

(0.5)

 

 

3.4

 

(0.5)

 

Total collection

 

2.9

 

2.0

 

 

3.0

 

2.0

 

MSW

 

3.7

 

1.9

 

 

3.6

 

4.6

 

Transfer

 

3.3

 

2.5

 

 

3.1

 

5.6

 

Total collection and disposal

 

2.6

%

2.7

%

 

2.7

%

3.8

%

__________________________________

(a)

 

Intercompany revenues between lines of business are eliminated in the Condensed Consolidated Financial Statements included herein.

(b)

 

Calculated by dividing the increase or decrease for the current year period by the prior year period’s related business revenue adjusted to exclude the impacts of divestitures for the current year period.

(c)

 

Calculated by dividing the increase or decrease for the current year period by the prior year period’s total Company revenue adjusted to exclude the impacts of divestitures for the current year period.

(d)

 

The amounts reported herein represent the changes in our revenue attributable to average yield for the total Company.

(e)

 

Workday adjusted volume impact.

WASTE MANAGEMENT, INC.
 
SUMMARY DATA SHEET
(In Millions)
(Unaudited)
 
Free Cash Flow (a)

Three Months Ended

 

Nine Months Ended

September 30,

 

September 30,

2019

 

2018

 

2019

 

2018

Net cash provided by operating activities

$

952

 

$

874

 

$

2,852

 

$

2,658

 

Capital expenditures

 

(483

)

 

(404

)

 

(1,532

)

 

(1,240

)

Proceeds from divestitures of businesses
and other assets (net of cash divested)

 

9

 

 

10

 

 

29

 

 

106

 

Free cash flow

$

478

 

$

480

 

$

1,349

 

$

1,524

 

 
 

Three Months Ended

 

Nine Months Ended

September 30,

 

September 30,

2019

 

2018

 

2019

 

2018

Supplemental Data
 
Internalization of waste, based on disposal costs

 

66.4

%

 

66.2

%

 

66.4

%

 

65.9

%

 
Landfill amortizable tons (in millions)

 

31.2

 

 

30.1

 

 

91.6

 

 

86.0

 

 
Acquisition Summary (b)
 
Gross annualized revenue acquired

 

51

 

 

47

 

 

170

 

 

215

 

 
Total consideration, net of cash acquired

 

78

 

 

84

 

 

513

 

 

350

 

 
Cash paid for acquisitions consummated during the period,
net of cash acquired

 

71

 

 

73

 

 

504

 

 

336

 

 
Cash paid for acquisitions including contingent consideration
and other items from prior periods, net of cash acquired

 

76

 

 

79

 

 

518

 

 

348

 

 
 
Amortization, Accretion and Other Expenses for Landfills:

Three Months Ended

 

Nine Months Ended

September 30,

 

September 30,

2019

 

2018

 

2019

 

2018

Landfill amortization expense:
Cost basis of landfill assets

$

129

 

$

114

 

$

372

 

$

327

 

Asset retirement costs

 

23

 

 

29

 

 

68

 

 

82

 

Total landfill amortization expense

 

152

 

 

143

 

 

440

 

 

409

 

Accretion and other related expense

 

26

 

 

25

 

 

76

 

 

74

 

Landfill amortization, accretion and other related expense

$

178

 

$

168

 

$

516

 

$

483

 

(a)

 

The summary of free cash flow has been prepared to highlight and facilitate understanding of the principal cash flow elements. Free cash flow is not a measure of financial performance under generally accepted accounting principles and is not intended to replace the consolidated statement of cash flows that was prepared in accordance with generally accepted accounting principles.

(b)

 

Represents amounts associated with business acquisitions consummated during the applicable period except where noted.

WASTE MANAGEMENT, INC.
 
RECONCILIATION OF CERTAIN NON-GAAP MEASURES
(In Millions, Except Per Share Amounts)
(Unaudited)
 

Three Months Ended
September 30, 2019

 

 

Income from
Operations

 

Pre-tax
Income

 

Tax Expense

 

Net
Income (a)

 

Weighted
Average
Common Shares
Outstanding

 

Diluted Per Share Amount

As reported amounts

$

734

$

615

$

120

$

495

 

 

427.4

 

$

1.16

Adjustments in connection with pending acquisition of Advanced Disposal Services, Inc. ("ADS"):
Acquisition-related costs

 

3

 

8

 

1

 

7

 

 

-

 

 

0.02

Impact of reduced common stock repurchases from planned levels

 

-

 

-

 

-

 

-

 

 

(5.2

)

 

0.01

As adjusted amounts

$

737

$

623

$

121

$

502

 

 

422.2

 

$

1.19

Depreciation and amortization

 

404

Adjusted operating EBITDA

$

1,141

 
 

Three Months Ended
September 30, 2018

 

 

 

 

Income from
Operations

 

Pre-tax
Income

 

Tax Expense

 

Net
Income (a)

 

Diluted Per
Share Amount

As reported amounts

$

699

$

597

$

99

$

499

 

$

1.16

 

Adjustments:
Benefit primarily related to favorable adjustments from tax reform and changes in state tax laws

 

-

 

-

 

27

 

(27

)

 

(0.06

)

Impairment of a disposal asset and multiemployer pension plan accrual

 

32

 

32

 

8

 

24

 

 

0.05

 

As adjusted amounts

$

731

$

629

$

134

$

496

 

$

1.15

 

Depreciation and amortization

 

376

Adjusted operating EBITDA

$

1,107

 

(a)

For purposes of this press release table, all references to "Net income" refer to the financial statement line item "Net income attributable to Waste Management, Inc."

WASTE MANAGEMENT, INC.
 
RECONCILIATION OF CERTAIN NON-GAAP MEASURES
(In Millions, Except Per Share Amounts)
(Unaudited)
 

Three Months Ended

September 30, 2019

 

September 30, 2018

Adjusted Operating Expenses and Adjusted Operating Expenses Margin

Amount

 

As a % of
Revenues

 

Amount

 

As a % of
Revenues

 
Operating revenues, as reported

$

3,967

 

$

3,822

 
Operating expenses, as reported

$

2,441

 

 

61.5

%

$

2,373

62.1

%

Adjustment:
Charges related to multiemployer pension plans

 

3

Adjusted operating expenses

$

2,370

62.0

%

 

Nine Months Ended

September 30, 2019

Adjusted Selling, General & Administrative (SG&A) Expenses and Adjusted SG&A MarginAmountAs a % of
Revenues
 
Operating revenues, as reported

$

11,609

 

 
SG&A expenses, as reported

$

1,186

 

 

10.2

%

Adjustment:
ADS acquisition-related costs

 

9

 

Adjusted SG&A expenses

$

1,177

 

 

10.1

%

 
 
2019 Projected Free Cash Flow Reconciliation (a)
Scenario 1Scenario 2
Net cash provided by operating activities (b)

$

3,750

 

$

3,850

 

Capital expenditures (c)

 

(1,775

)

 

(1,825

)

Proceeds from divestitures of businesses and
other assets (net of cash divested)

 

50

 

 

50

 

Free cash flow

$

2,025

 

$

2,075

 

 

(a)

The reconciliation includes two scenarios that illustrate our projected free cash flow range for 2019. The amounts used in the reconciliation are subject to many variables, some of which are not under our control and, therefore, are not necessarily indicative of actual results.

(b)

Excludes approximately $25 million of cash interest associated with financing the ADS acquisition, which is expected to be paid in the fourth quarter of 2019.

(c)

Excludes approximately $35 - $40 million of capital investment in renewable natural gas plants for the full year of 2019.

 

View source version on businesswire.com:https://www.businesswire.com/news/home/20191023005396/en/

CONTACT: Waste ManagementWeb site

www.wm.comAnalysts

Ed Egl

713.265.1656

eegl@wm.comMedia

Andy Izquierdo

832.710.5287

aizquierdo@wm.com

KEYWORD: UNITED STATES NORTH AMERICA TEXAS

INDUSTRY KEYWORD: ALTERNATIVE ENERGY ENERGY ENVIRONMENT

SOURCE: Waste Management, Inc.

Copyright Business Wire 2019.

PUB: 10/23/2019 07:02 AM/DISC: 10/23/2019 07:02 AM

http://www.businesswire.com/news/home/20191023005396/en