DAILY NEWS Apr 29, 2014 12:27 PM - 0 comments

Waste Management net income up 35% for Q1 2014

TEXT SIZE bigger text smaller text
By: SWR Staff

Waste Management Inc. has announced that its revenues for the first quarter of 2014 were $3.40 billion, compared with $3.34 billion for the same 2013 period.

“We saw continued and strong momentum in both yield and cost controls in the first quarter of 2014 that helped drive a more than 35% improvement in reported net income, and more than 22% growth in earnings per share when looking at first quarter 2013 adjusted results,” said David Steiner, Waste Management president and CEO.

Net income for the quarter was $228 million, or $0.49 per diluted share compared with $168 million, or $0.36 per diluted share, for the first quarter of 2013. In the first quarter of 2013, adjusted net income was $186 million, or $0.40 per diluted share.


  • Revenue increased by 1.8%, or $60 million; excluding a negative $17 million in foreign currency translation, revenue would have increased 2.3%.
  • Internal revenue growth from yield for collection and disposal operations was 2.6%.
  • Core price, which consists of price increases and fees, other than the Company’s fuel surcharge, net of rollbacks, was 4.2%, up from 3.2% in the first quarter of 2013.
  • Internal revenue growth from volume was negative 1.8%, a 40 basis point sequential improvement from the fourth quarter of 2013.
  • Average recycling commodity prices were approximately 1.8% lower in the first quarter of 2014 compared with the prior year period. In total, recycling operations negatively affected earnings by less than $0.01 per diluted share when compared to the prior year period.
  • Operating expenses increased by $23 million compared to the prior year period. The majority of the increase relates to operating costs within acquired operations, primarily the Company’s Montreal acquisition. As a percent of revenue, operating expenses were 65.7% in the first quarter of 2014, as compared to 66.2% in the first quarter of 2013, an improvement of 50 basis points.
  • SG&A expenses improved by $15 million compared with the first quarter of 2013 and improved to 11.0% of revenue from 11.7% in the prior year period.
  • Net cash provided by operating activities was $584 million, an improvement of $7 million when compared to the first quarter of 2013, despite over $100 million in working capital headwinds from the payment of incentive compensation and the maturity of interest rate swaps related to a planned senior note issuance. Capital expenditures were $266 million. The Company had $166 million of divestiture proceeds in the quarter, primarily related to the sale of its China waste-to-energy joint venture.
  • Free cash flow increased $136 million to $484 million in the first quarter of 2014.
  • The Company returned $174 million to shareholders in the form of dividends.
  • The effective tax rate was approximately 29.6%. This rate was lower compared to the prior year due to a non-cash adjustment to deferred taxes resulting from a change in state tax law. The net effect of the benefit was a positive $0.02 per diluted share in the first quarter when compared to the first quarter.       

Horizontal ruler
Horizontal Ruler

Post A Comment

Note: By submitting your comments you acknowledge that Solid Waste & Recycling has the right to reproduce, broadcast and publicize those comments or any part thereof in any manner whatsoever. Please note that due to the volume of e-mails we receive, not all comments will be published and those that are published will not be edited. However, all will be carefully read, considered and appreciated.

Your Name (this will appear with your post) *

Email Address (will not be published) *

Comments *

* mandatory fields