Waste Management posts earnings increase for Q3
Waste Management, Inc. disclosed financial results for its quarter ended September 30, 2013. Revenues for the third quarter of 2013 were $3.62 billion compared with $3.46 billion for the same 2012 period. Net income for the quarter was $291 million, or $0.62 per diluted share, compared with $214 million, or $0.46 per diluted share, for the third quarter of 2012, more than a 30 percent increase. Income from operations grew $77 million and income from operations margin grew 150 basis points. Results in the third quarter of 2013 included approximately $15 million of after-tax costs, primarily from asset impairments. Excluding these items, net income would have been $306 million, or $0.65 per diluted share, compared to adjusted earnings per diluted share of $0.61 in the third quarter of 2012.
David P. Steiner, president and chief executive officer of Waste Management, commented, “We had a very strong third quarter, earning $0.65 per share, as adjusted. Despite continued headwinds confronting our recycling and waste-to-energy businesses, our overall as-adjusted income from operations grew $33 million and the overall income from operations margin grew 20 basis points. The results were even more impressive in our traditional solid waste business, where income from operations grew $71 million and our income from operations margin grew 120 basis points.
“These strong results were driven by our continued focus on increasing internal revenue growth from yield and controlling costs. In the third quarter, collection and disposal yield was 2.3 percent, the fifth quarter of sequential improvement, and nearly triple the yield we saw in the third quarter of 2012. SG&A expenses as a percentage of revenue improved to 9.6 percent in the quarter, despite a year-over-year negative change of $50 million related to accruals for our annual incentive program.
Key highlights include:
- Revenue increased by 4.6 percent, or $160 million, from the prior year period, primarily from acquisitions and internal revenue growth from yield.
- Internal revenue growth from yield for collection and disposal operations was 2.3 percent, compared to 0.8 percent in the third quarter of 2012.
- Core price, which consists of price increases and fees, other than the Company’s fuel surcharge, net of rollbacks, was 3.9 percent, compared with 2.3 percent in the third quarter of 2012.