Waste Management Inc (WM) SEC Filing 10-K Annual report for the fiscal year ending Monday, December 31, 2018

Waste Management Announces Fourth Quarter and Full-Year 2018 Earnings

The Company Generates Its Best Ever Full-Year Income and Cash Flow from Operations

FOR MORE INFORMATION

Waste Management

HOUSTON — February 14, 2019

For the full year 2018, the Company reported revenues of $14.91 billion, compared with $14.49 billion for 2017.  Earnings per diluted share were $4.45 for the full year 2018 compared with $4.41 for the full year 2017.  On an adjusted basis, earnings per diluted share were $4.20 for the full year 2018 versus $3.22 for the full year 2017.(b)

Jim Fish, President and Chief Executive Officer of Waste Management, commented, “2018 was a record-setting year for Waste Management, driven by our traditional solid waste performance.  We grew operating EBITDA by more than 5%, which led to an increase in net cash provided by operations of more than 12% to $3.57 billion.(c)  This growth translated into free cash flow of over $2 billion and the most cash returned to our shareholders in over a decade.(b)  Our strong 2018 results validate that our focus on outstanding customer experience and cost management drives solid growth in our business.”

Web site

www.wm.com

Analysts

Ed Egl

713.265.1656

eegl@wm.com

Media

Tiffiany Moehring

720.346.5372

tmoehrin@wm.com

KEY HIGHLIGHTS FOR THE FOURTH QUARTER AND THE FULL YEAR 2018

Profitability

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Operating EBITDA was $1.14 billion for the fourth quarter of 2018 and $4.27 billion for the full year.  Adjusted operating EBITDA was $1.09 billion for the fourth quarter of 2018 and $4.22 billion for the full year. On a year-over-year basis, adjusted operating EBITDA grew $73 million, or 7.2%, in the fourth quarter and $210 million, or 5.2%, for the year.  Adjusted operating EBITDA margin improved 50 basis points in the fourth quarter and 60 basis points for the full year.(b)

Revenue Growth

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In the fourth quarter, revenue growth was driven by strong yield and volume growth in the Company’s collection and disposal business, which contributed $203 million of incremental revenue on a year-over-year basis.  Revenue from the Company’s recycling business increased $18 million in the fourth quarter of 2018.  For the full year, yield and volume growth in the Company’s collection and disposal business contributed $693 million of incremental revenue.  This was partially offset by a decline in revenue from the Company’s recycling business, which fell by $197 million year-over-year, due to lower market prices for commodities net of contamination fees.