Waste Management Inc (WM) SEC Filing 10-Q Quarterly report for the period ending Sunday, September 30, 2018

Waste Management Announces Third Quarter Earnings

Strong Organic Revenue Growth Produced Robust Earnings and Cash Generation

HOUSTON — October 25, 2018

The Company’s as-adjusted third quarter 2018 results exclude a $0.06 per diluted share benefit primarily resulting from favorable adjustments related to tax reform and changes in state tax laws and non-cash charges of $0.05 per diluted share primarily related to the impairment of a disposal asset.

“The recurring theme for the first two quarters of 2018 was one of historically strong solid waste performance more than overcoming a weak recycling market,” said Jim Fish, President and Chief Executive Officer of Waste Management.  “In the third quarter, we generated strong operating EBITDA growth, and we expect that growth to accelerate in the fourth quarter and into 2019.(c) Our collection and disposal business generated strong organic revenue growth of 6.4% as a result of our strengthening core price and volume.(d) Additionally, we demonstrated disciplined cost control, particularly on the SG&A line.  We executed very well on our plans to refine our recycling pricing model, and we saw tangible benefits from the investments we are making in our employees.”

KEY HIGHLIGHTS FOR THE THIRD QUARTER 2018

FOR MORE INFORMATION

Waste Management

Web site

www.wm.com

Analysts

Ed Egl

713.265.1656

eegl@wm.com

Media

Tiffiany Moehring

720.346.5372

tmoehrin@wm.com

Revenue Growth

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In the third quarter, revenue growth was driven by strong yield and volume growth in the Company’s collection and disposal business, which contributed $200 million of incremental revenue.  This was partially offset by a decline in revenue from the Company’s recycling line of business, which fell by $52 million year-over-year in the third quarter of 2018.

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Core price, which consists of price increases net of rollbacks and fees, excluding the Company’s fuel surcharge, was 5.4%, compared to 4.7% in the third quarter of 2017.(c)

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Internal revenue growth from yield for collection and disposal operations was 2.5% for the third quarter of 2018 versus 2.0% in the third quarter of 2017.

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Traditional solid waste internal revenue growth from volume was 3.2%, or 3.4% on a workday adjusted basis, in the third quarter of 2018.  Total Company internal revenue growth from volume, which includes our recycling and other ancillary businesses, was 4.2%, or 4.4% on a workday adjusted basis, in the third quarter.