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FOR IMMEDIATE RELEASE
|Waste Management Announces Fourth Quarter and Full-Year 2013 Earnings|
Company sees strong cash generation in 2013 and expects continued strength in 2014
FOR MORE INFORMATION
HOUSTON February 18, 2014 Waste Management, Inc. (NYSE: WM) today announced financial results for the fourth quarter and for the year ended December 31, 2013. Revenues for the fourth quarter of 2013 were $3.50 billion compared with $3.43 billion for the same 2012 period. Net loss (a) for the quarter was $605 million, or a negative $1.29 per diluted share, compared with net income of $224 million, or $0.48 per diluted share, for the fourth quarter of 2012. Adjusting for certain items discussed below, net income would have been $263 million, or $0.56 per diluted share, in the fourth quarter of 2013 compared with $267 million, or $0.57 per diluted share, in the fourth quarter of 2012.(b)
For the full year 2013, the Company reported revenues of $13.98 billion compared with $13.65 billion for 2012. Earnings per diluted share were $0.21 for the full year 2013 compared with $1.76 for the full year 2012. On an as-adjusted basis, excluding certain items, earnings per diluted share were $2.15 for the full-year 2013 versus $2.08 for the full-year 2012.(b)
We built strong momentum during the first three quarters of 2013, and that momentum continued into the fourth quarter, with our traditional solid waste business growing both adjusted income from operations margin and adjusted operating EBITDA margins by 150 basis points,(b) said David P. Steiner, President and Chief Executive Officer of Waste Management.
In the fourth quarter, however, we had a year-over-year increase of $0.09 per share from accruals related to incentive compensation and risk management. Absent this, our strong year-over-year earnings momentum would have continued in the quarter. And our momentum continued into 2014, with preliminary January results showing year-over-year income from operations increasing 12% and income from operations margin growing about 110 basis points compared to January 2013. (c)
In the fourth quarter of 2013, as-adjusted results excluded a negative $1.85 per diluted share impact from impairments primarily related to goodwill in the Companys waste-to-energy business, as well as certain post-collection assets and investments. First, the Companys 2013 year-end impairment testing resulted in a $483 million impairment charge to its waste-to-energy goodwill, due to the Companys view that projected long-term energy prices and disposal volumes into the plants will not dramatically improve from current levels. As a result, the projected long-term cash flows from the Companys waste-to-energy business no longer support the goodwill allocated to that business over 20 years ago, when the waste-to-energy business was acquired.
Second, with respect to the Companys post-collection assets, at year-end the Company completed an asset rationalization analysis and decided to mothball or shut down several post-collection facilities. The Company determined that the current volumes available to these facilities could be handled at other Company locations. If volumes available to the mothballed facilities increase in the future, the Company could re-activate permitting efforts or operations at these facilities.
The following information was filed by Waste Management Inc (WM) on Tuesday, February 18, 2014 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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