Waste Management reports marginal rise in 2Q’14 revenue

Waste management
Waste management

Waste Management has earned revenues of $3.56 billion in the second quarter of 2014, compared with $3.53 billion for the same 2013 period.

Net income for the quarter was $210 million compared with $244 million for the second quarter of 2013, the company said.

Waste management
Waste management

David P. Steiner, president and chief executive officer of Waste Management, said the company saw an increase of basis points on income from operations margin, and 120 basis points on an adjusted basis.

Cost of operations during the quarter improved by $10 million, driven by improvement in our recycling operations and SG&A costs notched down to 9.9 percent of revenue. All of these resulted in improvement in net cash provided by operations and free cash flow, which stand at $555 million and $447 million.

Revenue increased by 1.0 percent, or $35 million; excluding a negative $14 million in foreign currency translation, revenue would have increased 1.4 percent.

Internal revenue growth from yield for collection and disposal operations was 2.3 percent.

Core price, which consists of price increases and fees, other than the Company’s fuel surcharge, net of rollbacks, was 3.9 percent, up from 3.8 percent in the second quarter of 2013.

Internal revenue growth from volume was negative 1.4 percent, a 40 basis point sequential improvement from the first quarter of 2014. The loss of several low-margin national accounts represented more than half of the decline.

Earnings from the Company’s waste-to-energy operations were relatively flat when compared to the prior year period.

Recycling operations positively affected earnings by approximately $0.01 per diluted share when compared to the prior year period as the company improved its enforcement of restrictions on contaminated loads and continued to modify the methods for calculating rebates to its customers.

The company returned $175 million in dividends to shareholders.

“We still anticipate that our full-year yield will be greater than 2.0 percent, compensating for negative volumes in the second half of 2014. We also expect to see continued improvement from our cost control programs in 2014,” Steiner added.

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