Full year Net Cash Provided by Operations grew more than 18%
The Company expects continued strong earnings and operational
performance in 2017
HOUSTON--(BUSINESS WIRE)--Feb. 16, 2017--
Waste Management, Inc. (NYSE: WM) today announced financial results for
its quarter ended December 31, 2016. Revenues for the fourth quarter of
2016 were $3.46 billion, compared with $3.25 billion for the same 2015
period. Net income for the quarter was $335 million, or $0.75 per
diluted share, compared with net income of $273 million, or $0.61 per
diluted share, for the fourth quarter of 2015.(a) On an
as-adjusted basis, net income was $320 million, or $0.71 per diluted
share, in the fourth quarter of 2015.(b)
Income from operations in the fourth quarter of 2016 was $617 million
compared to $502 million, or $575 million on an as-adjusted basis, for
the same 2015 period. Operating EBITDA was $930 million in the fourth
quarter of 2016 compared to $803 million, or $876 million on an
as-adjusted basis, in the fourth quarter of 2015.(b)
For the full year 2016, the Company reported revenues of $13.6 billion,
compared with $13.0 billion for 2015. Earnings per diluted share were
$2.65 for the full year 2016 compared with $1.65 for the full year 2015.
On an as-adjusted basis, earnings per diluted share were $2.91 for the
full year 2016 versus $2.61 for the full year 2015.(b)
For the full year 2016, income from operations was $2.30 billion, or
$2.41 billion on an as-adjusted basis, compared to $2.05 billion, or
$2.19 billion on an as-adjusted basis, for 2015. For the full year of
2016, operating EBITDA was $3.60 billion, or $3.71 billion on an
as-adjusted basis, compared to $3.29 billion in 2015, or $3.43 billion
on an as-adjusted basis.(b)
Jim Fish, President and Chief Executive Officer of Waste Management,
commented, “In 2016 we continued our focus on core price, disciplined
volume growth, and cost control.(c) Our results in each of
these areas exceeded our expectations, which led to operating EBITDA
growth of 8.1% on an as-adjusted basis.(b)
“The fourth quarter saw internal revenue growth from each of yield and
total Company volume achieve 2.0% or greater. This is the first time we
have achieved this result in over a decade. This revenue growth drove
significant increases in net cash provided by operating activities and
free cash flow.(b) We will maintain our focus on driving core
price, growing high margin volumes, and controlling costs, positioning
us for strong earnings and cash generation in 2017.”
KEY HIGHLIGHTS FOR THE FOURTH QUARTER AND THE FULL YEAR 2016
-
In the fourth quarter, overall revenue increased by 6.6%, or $214
million, from the same period in the prior year. The revenue increase
was driven by positive yield and volume in the Company’s collection
and disposal business of $118 million. Acquisitions, net of
divestitures, contributed $45 million of revenue growth to the fourth
quarter. Recycling yield and volume also increased $51 million. For
the full year 2016, overall revenue increased by 5.0%, or $648
million. The revenue increase was driven by positive yield and volume
in the Company’s collection and disposal business of $445 million.
Acquisitions, net of divestitures, contributed $238 million of revenue
growth to the year. Recycling yield and volume also increased $60
million.
-
Core price, which consists of price increases net of rollbacks and
fees, other than the Company’s fuel surcharge, was 5.1%, up from 4.3%
in the fourth quarter of 2015. For the full year, core price was 5.0%,
up from 4.2% for the full year of 2015.(c)
-
Internal revenue growth from yield for collection and disposal
operations was 2.1% in the fourth quarter and 2.4% for the full year.
-
Traditional solid waste internal revenue growth from volume was 1.7%
in the fourth quarter of 2016, an improvement of 170 basis points
versus the fourth quarter of 2015. For the full year 2016, traditional
solid waste internal revenue growth from volume was 1.6%, an
improvement of 210 basis points versus the full year of 2015. Total
Company internal revenue growth from volume, which includes recycling
and renewable energy, was 2.0% in the fourth quarter, an improvement
of 290 basis points from the fourth quarter of 2015. Total Company
volume was 1.4% for the full year 2016, an improvement of 300 basis
points compared to the full year 2015.
-
Average recycling commodity prices at the Company’s recycling
facilities were approximately 31.6% higher in the fourth quarter of
2016 compared with the prior year period. Recycling volumes improved
2.4% in the fourth quarter. Results in the Company’s recycling line of
business improved by almost $0.03 per diluted share when compared to
the fourth quarter of 2015. For the full year, average recycling
commodity prices at the Company’s recycling facilities were
approximately 8.6% higher and volumes increased 0.8%. These revenue
increases, combined with reduced operating costs at the Company’s
recycling facilities, drove almost a $0.09 increase in the Company’s
earnings per diluted share.
-
As a percent of revenue, operating expenses were 62.1% in the fourth
quarter of 2016, as compared to 62.4% in the fourth quarter of 2015.
Operating expenses improved despite a 130 basis point negative impact
from commodity based costs. For the full year, as a percent of
revenue, operating expenses were 62.4% in 2016, as compared to 63.5%
for the full year 2015.
-
As a percent of revenue, SG&A expenses were 10.9% in the fourth
quarter of 2016, compared to 10.6% in the fourth quarter of 2015. The
increase related to additional incentive compensation expense and
executive severance in the quarter. For the full year, as a percent of
revenue, SG&A expenses were 10.4% in both 2016 and 2015.
-
Net cash provided by operating activities was $753 million in the
fourth quarter and $2.96 billion for the full year. Capital
expenditures were $377 million in the fourth quarter and $1.34 billion
for the full year.
-
Free cash flow was $387 million in the fourth quarter of 2016 compared
to $188 million in the fourth quarter of 2015.(b) In the
fourth quarter, the Company prepaid $150 million of expected 2017 cash
taxes. The Company had $11 million of divestiture proceeds in the
quarter compared to $31 million in the fourth quarter of 2015. Free
cash flow for the full year was $1.66 billion compared to $1.41
billion in 2015, an increase of 18%.(b) The Company had $43
million of divestiture proceeds in 2016, compared to $145 million for
the full year of 2015.
-
The Company paid dividends of $180 million to shareholders in the
fourth quarter and paid $225 million for share repurchases. For the
full year, the Company returned $1.45 billion to shareholders through
$726 million in dividends and $725 million in share repurchases.
-
In the fourth quarter the recorded effective tax rate was 34.4%. For
the full year 2016, the recorded effective tax rate was approximately
35.2%, or 34.4% on an as-adjusted basis.(b)
2017 OUTLOOK
The Company announced the following regarding its financial outlook for
2017:
-
Adjusted earnings per diluted share for 2017 are expected to be
between $3.14 and $3.18.(b)
-
Core price is expected to be 4.0% or greater for 2017.(c)
Internal revenue growth from yield on the collection and disposal
business is expected to be approximately 2.0%.
-
Internal revenue growth from volume is expected to be between 1.2% and
1.6%.
-
Recycling operations are expected to have a positive $0.03 impact on
earnings per diluted share in 2017, with much of it occurring in the
first quarter.
-
SG&A expenses are expected to be flat with 2016 for the full year, and
SG&A expenses as a percent of revenue are expected to improve by about
40 basis points.
-
Operating EBITDA is expected to be between $3.95 billion and $4.0
billion for the full year.(b)
-
Capital expenditures are expected to be in the range of $1.4 to $1.5
billion.
-
The Company expects to spend between $100 and $200 million for tuck-in
acquisitions during 2017.
-
Free cash flow for 2017 is projected to be between $1.5 and $1.6
billion.(b)
-
The Board of Directors has indicated its intention to increase the
dividend by $0.06, or 3.7%, to $1.70 per share on an annual basis, for
an approximate annual cost of $750 million. The Board must separately
declare each dividend.
-
The Company has authorization to repurchase up to $750 million of its
common stock.
-
Under current tax law, the tax rate is expected to be about 36.5%.
Fish concluded, “2016 was a very successful year for Waste Management as
we exceeded the goals that we established for the year, delivering
financial results above our original full year guidance for adjusted
earnings per share, free cash flow, and operating EBITDA. Our employees
are already building on the revenue growth and operating efficiency
gains we made in 2016, which should position us to grow our operating
EBITDA between 6.5% and 8.0% in 2017.(b)”
--------------------------------------------------------------------------------------------------------------
(a) For purposes of this press release, all references to “Net
income” refer to the financial statement line items “Net income
attributable to Waste Management, Inc.”
(b) This press release contains a discussion of non-GAAP measures,
as defined in Regulation G of the Securities Exchange Act of 1934, as
amended. The Company reports its financial results in compliance with
GAAP, but believes that also discussing non-GAAP measures provides
investors with (i) additional, meaningful comparisons of current results
to prior periods’ results by excluding items that the Company does not
believe reflect its fundamental business performance and are not
representative or indicative of its results of operations and (ii)
financial measures the Company uses in the management of its business.
Accordingly, net income, earnings per diluted share, income from
operations, operating EBITDA, and effective tax rate have been presented
in certain instances excluding items identified in the reconciliations
provided. The Company defines operating EBITDA as income from operations
before depreciation and amortization; this measure may not be comparable
to similarly titled measures reported by other companies.
The Company’s projected full year 2017 earnings per diluted share
and operating EBITDA are anticipated to be adjusted to exclude the
effects of events or circumstances in 2017 that are not representative
or indicative of the Company’s results of operations. Projected GAAP
earnings per diluted share and operating EBITDA for the full year would
require information about the projected impact of future excluded items,
including items that are not currently determinable, but may be
significant, such as asset impairments and one-time items, charges,
gains or losses from divestitures or litigation, or other items. Due to
the uncertainty of the likelihood, amount and timing of any such items,
the Company does not have information available to provide a
quantitative reconciliation of adjusted projected full year earnings per
diluted share, projected earnings growth, adjusted projected operating
EBITDA, or projected operating EBITDA growth to the comparable GAAP
measure.
The Company also discusses free cash flow and provides a projection
of free cash flow. Free cash flow is a non-GAAP measure. The company
discusses free cash flow because the Company believes that it is
indicative of its ability to pay its quarterly dividends, repurchase
common stock, fund acquisitions and other investments and, in the
absence of refinancings, to repay its debt obligations. Free cash flow
is not intended to replace “Net cash provided by operating activities,”
which is the most comparable U.S. GAAP measure. However, the Company
believes free cash flow gives investors useful insight into how the
Company views its liquidity. Nevertheless, the use of free cash flow as
a liquidity measure has material limitations because it excludes certain
expenditures that are required or that the Company has committed to,
such as declared dividend payments and debt service requirements. The
Company defines free cash flow as net cash provided by operating
activities, less capital expenditures, plus proceeds from divestitures
of businesses and other assets (net of cash divested); this definition
may not be comparable to similarly titled measures reported by other
companies.
The quantitative reconciliations of non-GAAP measures used herein
to the most comparable GAAP measures are included in the accompanying
schedules, with the exception of projected earnings per diluted share
and projected operating EBITDA. Non-GAAP measures should not be
considered a substitute for financial measures presented in accordance
with GAAP, and investors are urged to take into account GAAP measures as
well as non-GAAP measures in evaluating the Company.
(c) Core price is a performance metric used by management to
evaluate the effectiveness of our pricing strategies; it is not derived
from our financial statements and may not be comparable to measures
presented by other companies. Core price is based on certain historical
assumptions, which may differ from actual results, to allow for
comparability between reporting periods and to reveal trends in results
over time.
The Company will host a conference call at 10:00 AM (Eastern) today to
discuss the fourth quarter and full year 2016 results. Information
contained within this press release will be referenced and should be
considered in conjunction with the call.
The conference call will be webcast live from the Investor Relations
section of Waste Management’s website www.wm.com.
To access the conference call by telephone, please dial (877) 710-6139
approximately 10 minutes prior to the scheduled start of the call. If
you are calling from outside of the United States or Canada, please dial
(706) 643-7398. Please utilize conference ID number 55317607 when
prompted by the conference call operator.
A replay of the conference call will be available on the Company’s
website www.wm.com
and by telephone from approximately 1:00 PM (Eastern) Thursday, February
16, 2017 through 5:00 PM (Eastern) on Thursday, March 2, 2017. To access
the replay telephonically, please dial (855) 859-2056, or from outside
of the United States or Canada dial (404) 537-3406, and use the replay
conference ID number 55317607.
The Company, from time to time, provides estimates of financial and
other data, comments on expectations relating to future periods and
makes statements of opinion, view or belief about current and future
events. This press release contains a number of such forward-looking
statements, including but not limited to all statements under the
heading “2017 Outlook” and statements regarding 2017 earnings per
diluted share and earnings growth / strength; 2017 free cash flow and
growth; future operating EBITDA and growth; cash generation capabilities
/ strength; volume trends and margin; success and execution of
pricing/core price, growth, efficiency, and cost control strategies; and
future dividend rates and shares repurchases. You should view these
statements with caution. They are based on the facts and circumstances
known to the Company as of the date the statements are made. These
forward-looking statements are subject to risks and uncertainties that
could cause actual results to be materially different from those set
forth in such forward-looking statements, including but not limited to,
increased competition; pricing actions; failure to implement our
optimization, growth, and cost savings initiatives and overall business
strategy; failure to identify acquisition targets and negotiate
attractive terms; failure to consummate or integrate such acquisitions;
failure to obtain the results anticipated from acquisitions;
environmental and other regulations; commodity price fluctuations;
disposal alternatives and waste diversion; declining waste volumes;
failure to develop and protect new technology; significant environmental
or other incidents resulting in liabilities and brand damage; weakness
in economic conditions; failure to obtain and maintain necessary
permits; labor disruptions; impairment charges; and negative outcomes of
litigation or governmental proceedings. Please also see the
Company’s filings with the SEC, including Part I, Item 1A of the
Company’s most recently filed Annual Report on Form 10-K, for additional
information regarding these and other risks and uncertainties applicable
to our business. The Company assumes no obligation to update any
forward-looking statement, including financial estimates and forecasts,
whether as a result of future events, circumstances or developments or
otherwise.
ABOUT WASTE MANAGEMENT
Waste Management, based in Houston, Texas, is the leading provider of
comprehensive waste management services in North America. Through its
subsidiaries, the company provides collection, transfer, recycling and
resource recovery, and disposal services. It is also a leading
developer, operator and owner of landfill gas-to-energy facilities in
the United States. The company’s customers include residential,
commercial, industrial, and municipal customers throughout North
America. To learn more information about Waste Management, visit www.wm.com
or www.thinkgreen.com.
|
Waste Management, Inc.
|
Condensed Consolidated Statements of Operations
|
(In Millions, Except Per Share Amounts)
|
(Unaudited)
|
|
|
|
|
|
|
|
Quarters Ended December 31,
|
|
|
|
|
|
|
2016
|
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
Operating revenues
|
|
|
|
|
|
$
|
3,460
|
|
|
|
$
|
3,246
|
|
|
|
|
|
|
|
|
|
|
|
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
Operating
|
|
|
|
|
|
|
2,147
|
|
|
|
|
2,027
|
|
Selling, general and administrative
|
|
|
|
|
|
|
378
|
|
|
|
|
343
|
|
Depreciation and amortization
|
|
|
|
|
|
|
313
|
|
|
|
|
301
|
|
Restructuring
|
|
|
|
|
|
|
-
|
|
|
|
|
8
|
|
(Income) expense from divestitures, asset impairments and unusual
items
|
|
|
|
|
|
|
5
|
|
|
|
|
65
|
|
|
|
|
|
|
|
|
2,843
|
|
|
|
|
2,744
|
|
Income from operations
|
|
|
|
|
|
|
617
|
|
|
|
|
502
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense):
|
|
|
|
|
|
|
|
|
|
Interest expense, net
|
|
|
|
|
|
|
(94
|
)
|
|
|
|
(91
|
)
|
Loss on early extinguishment of debt
|
|
|
|
|
|
|
-
|
|
|
|
|
(3
|
)
|
Equity in net losses of unconsolidated entities
|
|
|
|
|
|
|
(12
|
)
|
|
|
|
(6
|
)
|
Other, net
|
|
|
|
|
|
|
(1
|
)
|
|
|
|
(5
|
)
|
|
|
|
|
|
|
|
(107
|
)
|
|
|
|
(105
|
)
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes
|
|
|
|
|
|
|
510
|
|
|
|
|
397
|
|
Provision for income taxes
|
|
|
|
|
|
|
176
|
|
|
|
|
124
|
|
Consolidated net income
|
|
|
|
|
|
|
334
|
|
|
|
|
273
|
|
Less: Net income (loss) attributable to noncontrolling interests
|
|
|
|
|
|
|
(1
|
)
|
|
|
|
-
|
|
Net income attributable to Waste Management, Inc.
|
|
|
|
|
|
$
|
335
|
|
|
|
$
|
273
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per common share
|
|
|
|
|
|
$
|
0.76
|
|
|
|
$
|
0.61
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per common share
|
|
|
|
|
|
$
|
0.75
|
|
|
|
$
|
0.61
|
|
|
|
|
|
|
|
|
|
|
|
Basic common shares outstanding
|
|
|
|
|
|
|
441.1
|
|
|
|
|
447.3
|
|
|
|
|
|
|
|
|
|
|
|
Diluted common shares outstanding
|
|
|
|
|
|
|
444.2
|
|
|
|
|
450.6
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends declared per common share
|
|
|
|
|
|
$
|
0.41
|
|
|
|
$
|
0.385
|
|
|
|
Waste Management, Inc.
|
Earnings Per Share
|
(In Millions, Except Per Share Amounts)
|
(Unaudited)
|
|
|
|
|
|
|
|
Quarters Ended December 31,
|
|
|
|
|
|
|
2016
|
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
EPS Calculation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to Waste Management, Inc.
|
|
|
|
|
|
$
|
335
|
|
|
$
|
273
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of common shares outstanding at end of period
|
|
|
|
|
|
|
439.3
|
|
|
|
447.2
|
Effect of using weighted average common shares outstanding
|
|
|
|
|
|
|
1.8
|
|
|
|
0.1
|
Weighted average basic common shares outstanding
|
|
|
|
|
|
|
441.1
|
|
|
|
447.3
|
Dilutive effect of equity-based compensation awards and
|
|
|
|
|
|
|
|
|
|
other contingently issuable shares
|
|
|
|
|
|
|
3.1
|
|
|
|
3.3
|
Weighted average diluted common shares outstanding
|
|
|
|
|
|
|
444.2
|
|
|
|
450.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per common share
|
|
|
|
|
|
$
|
0.76
|
|
|
$
|
0.61
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per common share
|
|
|
|
|
|
$
|
0.75
|
|
|
$
|
0.61
|
|
|
Waste Management, Inc.
|
Condensed Consolidated Statements of Operations
|
(In Millions, Except Per Share Amounts)
|
(Unaudited)
|
|
|
|
|
|
|
|
Twelve Months Ended December 31,
|
|
|
|
|
|
|
2016
|
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
Operating revenues
|
|
|
|
|
|
$
|
13,609
|
|
|
|
$
|
12,961
|
|
|
|
|
|
|
|
|
|
|
|
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
Operating
|
|
|
|
|
|
|
8,486
|
|
|
|
|
8,231
|
|
Selling, general and administrative
|
|
|
|
|
|
|
1,410
|
|
|
|
|
1,343
|
|
Depreciation and amortization
|
|
|
|
|
|
|
1,301
|
|
|
|
|
1,245
|
|
Restructuring
|
|
|
|
|
|
|
4
|
|
|
|
|
15
|
|
(Income) expense from divestitures, asset impairments and unusual
items
|
|
|
|
|
|
|
112
|
|
|
|
|
82
|
|
|
|
|
|
|
|
|
11,313
|
|
|
|
|
10,916
|
|
Income from operations
|
|
|
|
|
|
|
2,296
|
|
|
|
|
2,045
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense):
|
|
|
|
|
|
|
|
|
|
Interest expense, net
|
|
|
|
|
|
|
(376
|
)
|
|
|
|
(385
|
)
|
Loss on early extinguishment of debt
|
|
|
|
|
|
|
(4
|
)
|
|
|
|
(555
|
)
|
Equity in net losses of unconsolidated entities
|
|
|
|
|
|
|
(44
|
)
|
|
|
|
(38
|
)
|
Other, net
|
|
|
|
|
|
|
(50
|
)
|
|
|
|
(7
|
)
|
|
|
|
|
|
|
|
(474
|
)
|
|
|
|
(985
|
)
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes
|
|
|
|
|
|
|
1,822
|
|
|
|
|
1,060
|
|
Provision for income taxes
|
|
|
|
|
|
|
642
|
|
|
|
|
308
|
|
Consolidated net income
|
|
|
|
|
|
|
1,180
|
|
|
|
|
752
|
|
Less: Net income (loss) attributable to noncontrolling interests
|
|
|
|
|
|
|
(2
|
)
|
|
|
|
(1
|
)
|
Net income attributable to Waste Management, Inc.
|
|
|
|
|
|
$
|
1,182
|
|
|
|
$
|
753
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per common share
|
|
|
|
|
|
$
|
2.66
|
|
|
|
$
|
1.66
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per common share
|
|
|
|
|
|
$
|
2.65
|
|
|
|
$
|
1.65
|
|
|
|
|
|
|
|
|
|
|
|
Basic common shares outstanding
|
|
|
|
|
|
|
443.5
|
|
|
|
|
452.7
|
|
|
|
|
|
|
|
|
|
|
|
Diluted common shares outstanding
|
|
|
|
|
|
|
446.5
|
|
|
|
|
455.9
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends declared per common share
|
|
|
|
|
|
$
|
1.64
|
|
|
|
$
|
1.54
|
|
|
|
Waste Management, Inc.
|
Earnings Per Share
|
(In Millions, Except Per Share Amounts)
|
(Unaudited)
|
|
|
|
|
|
|
|
Twelve Months Ended December 31,
|
|
|
|
|
|
|
2016
|
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
EPS Calculation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to Waste Management, Inc.
|
|
|
|
|
|
$
|
1,182
|
|
|
$
|
753
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of common shares outstanding at end of period
|
|
|
|
|
|
|
439.3
|
|
|
|
447.2
|
Effect of using weighted average common shares outstanding
|
|
|
|
|
|
|
4.2
|
|
|
|
5.5
|
Weighted average basic common shares outstanding
|
|
|
|
|
|
|
443.5
|
|
|
|
452.7
|
Dilutive effect of equity-based compensation awards and
|
|
|
|
|
|
|
|
|
|
other contingently issuable shares
|
|
|
|
|
|
|
3.0
|
|
|
|
3.2
|
Weighted average diluted common shares outstanding
|
|
|
|
|
|
|
446.5
|
|
|
|
455.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per common share
|
|
|
|
|
|
$
|
2.66
|
|
|
$
|
1.66
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per common share
|
|
|
|
|
|
$
|
2.65
|
|
|
$
|
1.65
|
|
|
Waste Management, Inc.
|
Condensed Consolidated Balance Sheets
|
(In Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
|
December 31,
|
|
|
|
|
|
2016
|
|
|
|
2015
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
|
$
|
32
|
|
|
|
$
|
39
|
Receivables, net
|
|
|
|
|
|
2,132
|
|
|
|
|
2,094
|
Other
|
|
|
|
|
|
212
|
|
|
|
|
212
|
Total current assets
|
|
|
|
|
|
2,376
|
|
|
|
|
2,345
|
|
|
|
|
|
|
|
|
|
|
Property and equipment, net
|
|
|
|
|
|
10,950
|
|
|
|
|
10,665
|
Goodwill
|
|
|
|
|
|
6,215
|
|
|
|
|
5,984
|
Other intangible assets, net
|
|
|
|
|
|
591
|
|
|
|
|
477
|
Other assets
|
|
|
|
|
|
727
|
|
|
|
|
896
|
Total assets
|
|
|
|
|
$
|
20,859
|
|
|
|
$
|
20,367
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
|
Accounts payable, accrued liabilities, and
|
|
|
|
|
|
|
|
|
|
deferred revenues
|
|
|
|
|
$
|
2,377
|
|
|
|
$
|
2,257
|
Current portion of long-term debt
|
|
|
|
|
|
417
|
|
|
|
|
253
|
Total current liabilities
|
|
|
|
|
|
2,794
|
|
|
|
|
2,510
|
|
|
|
|
|
|
|
|
|
|
Long-term debt, less current portion
|
|
|
|
|
|
8,893
|
|
|
|
|
8,676
|
Other liabilities
|
|
|
|
|
|
3,852
|
|
|
|
|
3,814
|
Total liabilities
|
|
|
|
|
|
15,539
|
|
|
|
|
15,000
|
|
|
|
|
|
|
|
|
|
|
Equity:
|
|
|
|
|
|
|
|
|
|
Waste Management, Inc. stockholders' equity
|
|
|
|
|
|
5,297
|
|
|
|
|
5,345
|
Noncontrolling interests
|
|
|
|
|
|
23
|
|
|
|
|
22
|
Total equity
|
|
|
|
|
|
5,320
|
|
|
|
|
5,367
|
Total liabilities and equity
|
|
|
|
|
$
|
20,859
|
|
|
|
$
|
20,367
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: Prior year information has been reclassified to conform to
2016 presentation.
|
|
|
Waste Management, Inc.
|
Condensed Consolidated Statements of Cash Flows
|
(In Millions)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
Twelve Months Ended December 31,
|
|
|
|
|
|
|
2016
|
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
|
Consolidated net income
|
|
|
|
|
|
$
|
1,180
|
|
|
|
$
|
752
|
|
Adjustments to reconcile consolidated net income to net cash
|
|
|
|
|
|
|
|
|
|
provided by operating activities:
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
|
|
|
1,301
|
|
|
|
|
1,245
|
|
Loss on early extinguishment of debt
|
|
|
|
|
|
|
4
|
|
|
|
|
555
|
|
Other
|
|
|
|
|
|
|
398
|
|
|
|
|
324
|
|
Change in operating assets and liabilities, net of effects of
|
|
|
|
|
|
|
|
|
|
acquisitions and divestitures
|
|
|
|
|
|
|
77
|
|
|
|
|
(378
|
)
|
Net cash provided by operating activities
|
|
|
|
|
|
|
2,960
|
|
|
|
|
2,498
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
Acquisitions of businesses, net of cash acquired
|
|
|
|
|
|
|
(611
|
)
|
|
|
|
(554
|
)
|
Capital expenditures
|
|
|
|
|
|
|
(1,339
|
)
|
|
|
|
(1,233
|
)
|
Proceeds from divestitures of businesses
|
|
|
|
|
|
|
|
|
|
and other assets (net of cash divested)
|
|
|
|
|
|
|
43
|
|
|
|
|
145
|
|
Investments in unconsolidated entities
|
|
|
|
|
|
|
(21
|
)
|
|
|
|
(20
|
)
|
Net receipts from restricted trust and escrow
|
|
|
|
|
|
|
|
|
|
accounts, and other
|
|
|
|
|
|
|
(4
|
)
|
|
|
|
54
|
|
Net cash used in investing activities
|
|
|
|
|
|
|
(1,932
|
)
|
|
|
|
(1,608
|
)
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
New borrowings
|
|
|
|
|
|
|
3,057
|
|
|
|
|
2,337
|
|
Debt repayments
|
|
|
|
|
|
|
(2,682
|
)
|
|
|
|
(2,764
|
)
|
Premiums paid on early extinguishment of debt
|
|
|
|
|
|
|
(2
|
)
|
|
|
|
(555
|
)
|
Common stock repurchases
|
|
|
|
|
|
|
(725
|
)
|
|
|
|
(600
|
)
|
Cash dividends
|
|
|
|
|
|
|
(726
|
)
|
|
|
|
(695
|
)
|
Exercise of common stock options
|
|
|
|
|
|
|
63
|
|
|
|
|
77
|
|
Other, net
|
|
|
|
|
|
|
(20
|
)
|
|
|
|
45
|
|
Net cash used in financing activities
|
|
|
|
|
|
|
(1,035
|
)
|
|
|
|
(2,155
|
)
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash and cash equivalents
|
|
|
|
|
|
|
-
|
|
|
|
|
(3
|
)
|
|
|
|
|
|
|
|
|
|
|
Increase (decrease) in cash and cash equivalents
|
|
|
|
|
|
|
(7
|
)
|
|
|
|
(1,268
|
)
|
Cash and cash equivalents at beginning of period
|
|
|
|
|
|
|
39
|
|
|
|
|
1,307
|
|
Cash and cash equivalents at end of period
|
|
|
|
|
|
$
|
32
|
|
|
|
$
|
39
|
|
|
|
Waste Management, Inc.
|
Summary Data Sheet
|
(Dollar Amounts in Millions)
|
(Unaudited)
|
|
|
|
|
|
|
|
Quarters Ended
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
|
September 30,
|
|
|
|
December 31,
|
|
|
|
|
|
|
|
|
|
|
|
2016
|
|
|
|
2016
|
|
|
|
2015
|
|
|
|
|
|
Operating Revenues by Lines of Business
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Collection
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
|
|
|
|
|
|
$
|
888
|
|
|
|
|
$
|
881
|
|
|
|
|
$
|
834
|
|
|
|
|
|
|
Residential
|
|
|
|
|
|
|
625
|
|
|
|
|
|
630
|
|
|
|
|
|
626
|
|
|
|
|
|
|
Industrial
|
|
|
|
|
|
|
605
|
|
|
|
|
|
633
|
|
|
|
|
|
567
|
|
|
|
|
|
|
Other
|
|
|
|
|
|
|
106
|
|
|
|
|
|
110
|
|
|
|
|
|
97
|
|
|
|
|
|
|
Total Collection
|
|
|
|
|
|
|
2,224
|
|
|
|
|
|
2,254
|
|
|
|
|
|
2,124
|
|
|
|
|
|
|
Landfill
|
|
|
|
|
|
|
780
|
|
|
|
|
|
831
|
|
|
|
|
|
745
|
|
|
|
|
|
|
Transfer
|
|
|
|
|
|
|
378
|
|
|
|
|
|
397
|
|
|
|
|
|
348
|
|
|
|
|
|
|
Recycling
|
|
|
|
|
|
|
338
|
|
|
|
|
|
325
|
|
|
|
|
|
285
|
|
|
|
|
|
|
Other
|
|
|
|
|
|
|
414
|
|
|
|
|
|
432
|
|
|
|
|
|
358
|
|
|
|
|
|
|
Intercompany (a)
|
|
|
|
|
|
|
(674
|
)
|
|
|
|
|
(691
|
)
|
|
|
|
|
(614
|
)
|
|
|
|
|
|
Operating revenues
|
|
|
|
|
|
$
|
3,460
|
|
|
|
|
$
|
3,548
|
|
|
|
|
$
|
3,246
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarters Ended
|
|
|
|
|
|
|
|
December 31, 2016
|
|
|
|
December 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Analysis of Change in Year Over Year
Revenues
|
|
|
|
|
|
Amount
|
|
|
|
As a % of
Total Company
|
|
|
|
Amount
|
|
|
|
As a % of
Total Company
|
Average yield (i)
|
|
|
|
|
|
$
|
105
|
|
|
|
|
|
3.2
|
%
|
|
|
|
$
|
(24
|
)
|
|
|
|
|
-0.7
|
%
|
Volume
|
|
|
|
|
|
|
64
|
|
|
|
|
|
2.0
|
%
|
|
|
|
|
(30
|
)
|
|
|
|
|
-0.9
|
%
|
Internal revenue growth
|
|
|
|
|
|
|
169
|
|
|
|
|
|
5.2
|
%
|
|
|
|
|
(54
|
)
|
|
|
|
|
-1.6
|
%
|
Acquisition
|
|
|
|
|
|
|
47
|
|
|
|
|
|
1.5
|
%
|
|
|
|
|
59
|
|
|
|
|
|
1.8
|
%
|
Divestitures
|
|
|
|
|
|
|
(2
|
)
|
|
|
|
|
-0.1
|
%
|
|
|
|
|
(163
|
)
|
|
|
|
*
|
|
Foreign currency translation
|
|
|
|
|
|
|
-
|
|
|
|
|
|
0.0
|
%
|
|
|
|
|
(33
|
)
|
|
|
|
|
-1.0
|
%
|
|
|
|
|
|
|
$
|
214
|
|
|
|
|
|
6.6
|
%
|
|
|
|
$
|
(191
|
)
|
|
|
|
|
-5.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Amount
|
|
|
|
As a % of
Related
Business
|
|
|
|
Amount
|
|
|
|
As a % of
Related
Business
|
(i) Average yield
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Collection and disposal
|
|
|
|
|
|
$
|
61
|
|
|
|
|
|
2.1
|
%
|
|
|
|
$
|
48
|
|
|
|
|
|
1.7
|
%
|
Recycling commodities
|
|
|
|
|
|
|
44
|
|
|
|
|
|
16.1
|
%
|
|
|
|
|
(29
|
)
|
|
|
|
|
-9.4
|
%
|
Fuel surcharges and mandated fees
|
|
|
|
|
|
|
-
|
|
|
|
|
|
0.0
|
%
|
|
|
|
|
(43
|
)
|
|
|
|
|
-26.7
|
%
|
Total
|
|
|
|
|
|
$
|
105
|
|
|
|
|
|
3.2
|
%
|
|
|
|
$
|
(24
|
)
|
|
|
|
|
-0.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Quarters Ended December 31,
|
|
|
|
Twelve Months Ended December 31,
|
|
|
|
|
|
|
2016
|
|
|
|
2015
|
|
|
|
2016
|
|
|
|
2015
|
Free Cash Flow Analysis (b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities
|
|
|
|
|
|
$
|
753
|
|
|
|
|
$
|
526
|
|
|
|
|
$
|
2,960
|
|
|
|
|
$
|
2,498
|
|
Capital expenditures
|
|
|
|
|
|
|
(377
|
)
|
|
|
|
|
(369
|
)
|
|
|
|
|
(1,339
|
)
|
|
|
|
|
(1,233
|
)
|
Proceeds from divestitures of businesses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
and other assets (net of cash divested)
|
|
|
|
|
|
|
11
|
|
|
|
|
|
31
|
|
|
|
|
|
43
|
|
|
|
|
|
145
|
|
Free cash flow
|
|
|
|
|
|
$
|
387
|
|
|
|
|
$
|
188
|
|
|
|
|
$
|
1,664
|
|
|
|
|
$
|
1,410
|
|
|
*
|
Percentage change does not provide a meaningful comparison.
|
|
|
(a)
|
Intercompany revenues between lines of business are eliminated
within the Condensed Consolidated Financial Statements included
herein.
|
|
|
(b)
|
The summary of free cash flows has been prepared to highlight and
facilitate understanding of the principal cash flow elements. Free
cash flow is not a measure of financial performance under
generally accepted accounting principles and is not intended to
replace the consolidated statement of cash flows that was prepared
in accordance with generally accepted accounting principles.
|
|
|
Waste Management, Inc.
|
Summary Data Sheet
|
(Dollar Amounts in Millions)
|
(Unaudited)
|
|
|
|
|
|
|
Quarters Ended
|
|
|
|
|
|
December 31,
|
|
|
|
September 30,
|
|
|
|
December 31,
|
|
|
|
|
|
2016
|
|
|
|
2016
|
|
|
|
2015
|
Balance Sheet Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
|
$
|
32
|
|
|
|
|
$
|
30
|
|
|
|
|
$
|
39
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt-to-total capital ratio:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term indebtedness, including current
|
|
|
|
|
|
|
|
|
|
|
|
|
|
portion
|
|
|
|
|
$
|
9,310
|
|
|
|
|
$
|
9,261
|
|
|
|
|
$
|
8,929
|
|
Total equity
|
|
|
|
|
|
5,320
|
|
|
|
|
|
5,383
|
|
|
|
|
|
5,367
|
|
Total capital
|
|
|
|
|
$
|
14,630
|
|
|
|
|
$
|
14,644
|
|
|
|
|
$
|
14,296
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt-to-total capital
|
|
|
|
|
|
63.6
|
%
|
|
|
|
|
63.2
|
%
|
|
|
|
|
62.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capitalized interest
|
|
|
|
|
$
|
2
|
|
|
|
|
$
|
2
|
|
|
|
|
$
|
4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition Summary (a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross annualized revenue acquired
|
|
|
|
|
$
|
3
|
|
|
|
|
$
|
23
|
|
|
|
|
$
|
75
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total consideration
|
|
|
|
|
$
|
3
|
|
|
|
|
$
|
32
|
|
|
|
|
$
|
128
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash paid for acquisitions
|
|
|
|
|
$
|
11
|
|
|
|
|
$
|
28
|
|
|
|
|
$
|
81
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Operational Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Internalization of waste, based on disposal costs
|
|
|
|
|
|
66.1
|
%
|
|
|
|
|
65.8
|
%
|
|
|
|
|
65.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total landfill disposal volumes (tons in millions)
|
|
|
|
|
|
26.2
|
|
|
|
|
|
28.0
|
|
|
|
|
|
24.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Active landfills
|
|
|
|
|
|
248
|
|
|
|
|
|
248
|
|
|
|
|
|
249
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sites accepting waste at the end of each period presented
|
|
|
|
|
|
233
|
|
|
|
|
|
233
|
|
|
|
|
|
236
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization, Accretion and Other
Expenses for
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Landfills Included in Operating Groups:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Landfill amortization expense -
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost basis of landfill assets
|
|
|
|
|
$
|
93.5
|
|
|
|
|
$
|
98.3
|
|
|
|
|
$
|
87.2
|
|
Asset retirement costs
|
|
|
|
|
|
(1.7
|
)
|
|
|
|
|
18.7
|
|
|
|
|
|
1.2
|
|
Total landfill amortization expense (b) (c)
|
|
|
|
|
|
91.8
|
|
|
|
|
|
117.0
|
|
|
|
|
|
88.4
|
|
Accretion and other related expense
|
|
|
|
|
|
20.1
|
|
|
|
|
|
19.6
|
|
|
|
|
|
19.7
|
|
Landfill amortization, accretion and other related expense
|
|
|
|
|
$
|
111.9
|
|
|
|
|
$
|
136.6
|
|
|
|
|
$
|
108.1
|
|
|
(a)
|
Represents amounts associated with business acquisitions
consummated during the indicated periods except for Cash paid for
acquisitions, which may include cash payments for business
acquisitions consummated in prior quarters.
|
|
|
(b)
|
The quarter ended December 31, 2016 as compared to the quarter
ended September 30, 2016 reflects a decrease in amortization
expense of approximately $25.2 million, primarily due to changes
in landfill estimates identified in the current quarter.
|
|
|
(c)
|
The quarter ended December 31, 2016 as compared to the quarter
ended December 31, 2015 reflects an increase in amortization
expense of approximately $3.4 million primarily due to increased
volumes.
|
|
|
|
|
|
|
|
Waste Management, Inc.
|
Reconciliation of Certain Non-GAAP Measures
|
(Dollars In Millions, Except Per Share Amounts)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
December 31, 2015
|
|
|
|
|
|
|
|
|
Adjusted Net Income and Diluted Earnings Per Share
|
|
|
|
|
After-tax
Amount
|
(a)
|
|
Per Share Amount
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income and Diluted EPS, as reported
|
|
|
|
|
$
|
273
|
|
|
$
|
0.61
|
|
|
|
|
|
|
|
|
Adjustment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expense from divestitures, asset impairments and unusual
items and restructuring (b)
|
|
|
|
|
|
47
|
(c)
|
|
|
0.10
|
|
|
|
|
|
|
|
|
Adjusted Net Income and Diluted EPS
|
|
|
|
|
$
|
320
|
|
|
$
|
0.71
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
December 31, 2016
|
|
|
|
Year Ended
December 31, 2015
|
|
Adjusted Net Income and Diluted Earnings Per Share
|
|
|
|
|
After-tax
Amount
|
(a)
|
|
Per Share Amount
|
|
|
|
After-tax
Amount
|
(a)
|
|
Per Share
Amount
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income and Diluted EPS, as reported
|
|
|
|
|
$
|
1,182
|
|
|
$
|
2.65
|
|
|
|
$
|
753
|
|
|
$
|
1.65
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expense from divestitures, asset impairments and unusual
items and restructuring (b)
|
|
|
|
|
|
114
|
|
|
|
|
|
|
|
59
|
|
|
|
|
Loss on early extinguishment of debt
|
|
|
|
|
|
-
|
|
|
|
|
|
|
|
344
|
|
|
|
|
Partial withdrawal from multiemployer pension plans
|
|
|
|
|
|
-
|
|
|
|
|
|
|
|
32
|
|
|
|
|
|
|
|
|
|
|
114
|
|
|
|
0.26
|
|
|
|
|
435
|
|
|
|
0.96
|
|
Adjusted Net Income and Diluted EPS
|
|
|
|
|
$
|
1,296
|
|
|
$
|
2.91
|
(d)
|
|
|
$
|
1,188
|
|
|
$
|
2.61
|
(d)
|
|
|
|
|
|
|
|
(a)
|
|
Please see the "Adjusted tax expense reconciliation" on page 12 for
the tax expense associated with each of the after-tax adjustments to
net income and diluted EPS in 2016 and 2015.
|
|
|
|
(b)
|
|
For the purpose of this table, adjustments in 2016 and 2015 include
restructuring charges and impairment charges associated with assets
in the "(Income)/expense from divestitures, asset impairments and
unusual items" financial caption as well as impairment charges
associated with certain of our investments in unconsolidated
entities that are included in the "Other, net" financial caption.
|
|
|
|
(c)
|
|
Adjustments in the fourth quarter of 2015 consist primarily of an
after-tax charge of $40 million to impair certain of our oil and gas
producing properties resulting from the pronounced decrease in oil
and gas prices in the fourth quarter of 2015.
|
|
|
|
(d)
|
|
Full year 2016 adjusted earnings per diluted share increased 11.5%
as compared with 2015 adjusted earnings per diluted share.
|
|
|
Waste Management, Inc.
|
Reconciliation of Certain Non-GAAP Measures
|
(Dollars In Millions, Except Per Share Amounts)
|
(Unaudited)
|
|
|
|
|
|
|
Quarter Ended
December 31, 2016
|
Income from Operations and Operating EBITDA
|
|
|
|
|
Amount
|
|
|
|
|
As a % of
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Revenues, as reported
|
|
|
|
|
$
|
3,460
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from Operations, as reported
|
|
|
|
|
$
|
617
|
|
(a)
|
|
|
17.8
|
%
|
|
(a)
|
Depreciation and amortization
|
|
|
|
|
|
313
|
|
|
|
|
|
|
|
Operating EBITDA, as reported
|
|
|
|
|
$
|
930
|
|
(b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
December 31, 2015
|
Adjusted Income from Operations
|
|
|
|
|
Amount
|
|
|
|
|
As a % of
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Revenues, as reported
|
|
|
|
|
$
|
3,246
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from Operations, as reported
|
|
|
|
|
$
|
502
|
|
|
|
|
|
|
|
Adjustment:
|
|
|
|
|
|
|
|
|
|
|
|
|
Expense from divestitures, asset impairments and unusual
items and restructuring
|
|
|
|
|
|
73
|
|
|
|
|
|
|
|
Adjusted Income from Operations
|
|
|
|
|
$
|
575
|
|
(a)
|
|
|
17.7
|
%
|
|
(a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
December 31, 2015
|
|
|
Adjusted Operating EBITDA
|
|
|
|
|
Amount
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from Operations, as reported
|
|
|
|
|
$
|
502
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
|
|
301
|
|
|
|
|
|
|
|
Operating EBITDA, as reported
|
|
|
|
|
|
803
|
|
|
|
|
|
|
|
Adjustment:
|
|
|
|
|
|
|
|
|
|
|
|
|
Expense from divestitures, asset impairments and unusual
items and restructuring
|
|
|
|
|
|
73
|
|
|
|
|
|
|
|
Adjusted Operating EBITDA
|
|
|
|
|
$
|
876
|
|
(b)
|
|
|
|
|
|
|
|
(a)
|
|
Fourth quarter 2016 as reported income from operations increased $42
million, or 10 basis points, as compared with adjusted income from
operations in the fourth quarter of 2015.
|
|
|
|
(b)
|
|
Fourth quarter 2016 as reported operating EBITDA increased $54
million as compared with adjusted operating EBITDA in the fourth
quarter of 2015.
|
|
|
Waste Management, Inc.
|
Reconciliation of Certain Non-GAAP Measures
|
(Dollars In Millions, Except Per Share Amounts)
|
(Unaudited)
|
|
|
|
|
|
|
Year Ended
December 31, 2016
|
|
|
|
Year Ended
December 31, 2015
|
|
Adjusted Income from Operations
|
|
|
|
|
Amount
|
|
|
|
Amount
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from Operations, as reported
|
|
|
|
|
$
|
2,296
|
|
|
|
|
$
|
2,045
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
Expense from divestitures, asset impairments and unusual
items and restructuring
|
|
|
|
|
|
110
|
|
|
|
|
|
85
|
|
|
Partial withdrawal from multiemployer pension plans
|
|
|
|
|
|
-
|
|
|
|
|
|
55
|
|
|
Adjusted Income from Operations
|
|
|
|
|
$
|
2,406
|
|
|
|
|
$
|
2,185
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
December 31, 2016
|
|
|
|
Year Ended
December 31, 2015
|
|
Adjusted Operating EBITDA
|
|
|
|
|
Amount
|
|
|
|
Amount
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from Operations, as reported
|
|
|
|
|
$
|
2,296
|
|
|
|
|
$
|
2,045
|
|
|
Depreciation and amortization
|
|
|
|
|
|
1,301
|
|
|
|
|
|
1,245
|
|
|
Operating EBITDA, as reported
|
|
|
|
|
$
|
3,597
|
|
|
|
|
$
|
3,290
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
Expense from divestitures, asset impairments and unusual
items and restructuring
|
|
|
|
|
|
110
|
|
|
|
|
|
85
|
|
|
Partial withdrawal from multiemployer pension plans
|
|
|
|
|
|
-
|
|
|
|
|
|
55
|
|
|
Adjusted Operating EBITDA
|
|
|
|
|
$
|
3,707
|
|
|
(a)
|
|
$
|
3,430
|
|
(a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2017 Projected Free Cash Flow Reconciliation (b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Scenario 1
|
|
|
|
Scenario 2
|
|
Net cash provided by operating activities
|
|
|
|
|
$
|
2,900
|
|
|
|
|
$
|
3,000
|
|
|
Capital expenditures
|
|
|
|
|
|
(1,450
|
)
|
|
|
|
|
(1,450
|
)
|
|
Proceeds from divestitures of businesses and
|
|
|
|
|
|
|
|
|
|
|
other assets (net of cash divested)
|
|
|
|
|
|
50
|
|
|
|
|
|
50
|
|
|
Free Cash Flow
|
|
|
|
|
$
|
1,500
|
|
|
|
|
$
|
1,600
|
|
|
|
|
|
(a)
|
|
Full year 2016 adjusted operating EBITDA increased $277 million, or
8.1%, as compared with the same prior year period.
|
|
|
|
(b)
|
|
The reconciliation includes two scenarios that illustrate our
projected free cash flow range for 2017. The amounts used in the
reconciliation are subject to many variables, some of which are not
under our control and, therefore, are not necessarily indicative of
actual results.
|
|
|
Waste Management, Inc.
|
Reconciliation of Certain Non-GAAP Measures
|
(Dollars In Millions)
|
(Unaudited)
|
|
|
|
|
|
|
|
Quarter Ended
December 31, 2015
|
|
|
|
|
Adjusted Tax Expense Reconciliation
|
|
|
|
|
|
Pre-tax
Income
|
|
|
Tax
Expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As reported amounts
|
|
|
|
|
|
$
|
397
|
|
|
|
$
|
124
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expense from divestitures, asset impairments and
unusual items and restructuring (b)
|
|
|
|
|
|
|
76
|
|
|
|
|
29
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As adjusted amounts
|
|
|
|
|
|
$
|
473
|
|
|
|
$
|
153
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
December 31, 2016
|
|
|
Year Ended
December 31, 2015
|
Adjusted Tax Expense Reconciliation and Effective Tax
|
|
|
|
|
|
Pre-tax
|
|
|
Tax
|
|
|
|
Effective Tax
|
|
|
Pre-tax
|
|
|
Tax
|
|
|
Effective Tax
|
Rate
|
|
|
|
|
|
Income
|
|
|
Expense
|
|
|
|
Rate (a)
|
|
|
Income
|
|
|
Expense
|
|
|
Rate (a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As reported amounts
|
|
|
|
|
|
$
|
1,822
|
|
|
|
$
|
642
|
|
|
|
35.2
|
%
|
|
|
|
$
|
1,060
|
|
|
|
$
|
308
|
|
|
|
29.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expense from divestitures, asset impairments and
unusual items and restructuring (b)
|
|
|
|
|
|
|
151
|
|
|
|
|
37
|
|
|
|
|
|
|
|
|
89
|
|
|
|
|
30
|
|
|
|
|
Loss on early extinguishment of debt
|
|
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
550
|
|
|
|
|
206
|
|
|
|
|
Partial withdrawal from multiemployer pension plans
|
|
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
55
|
|
|
|
|
23
|
|
|
|
|
As adjusted amounts
|
|
|
|
|
|
$
|
1,973
|
|
|
|
$
|
679
|
|
|
|
34.4
|
%
|
|
|
|
$
|
1,754
|
|
|
|
$
|
567
|
|
|
|
32.3
|
%
|
|
|
(a)
|
|
The Company calculates its effective tax rate based on actual
dollars. Rounding differences occurred when the effective tax rate
was calculated using Pre-tax Income and Tax Expense amounts included
in the table above, as these items have been rounded in millions.
|
|
|
|
(b)
|
|
For the purpose of this table, adjustments in 2016 and 2015 include
restructuring charges and impairment charges associated with assets
in the "(Income)/expense from divestitures, asset impairments and
unusual items" financial caption as well as impairment charges
associated with certain of our investments in unconsolidated
entities that are included in the "Other, net" financial caption.
|
|

View source version on businesswire.com: http://www.businesswire.com/news/home/20170216005616/en/
Source: Waste Management, Inc.
Waste Management Analysts Ed Egl, 713-265-1656 eegl@wm.com or Media Toni
Beck, 713-394-5093 tbeck3@wm.com www.wm.com
|