Waste Management Announces Plan to Increase Quarterly Dividend Payments and Authorization for $600 Million in Share Repurchases
The Company also announced today that its Board of Directors has
authorized the purchase of up to
The Board of Directors intends to declare the first quarter 2014 dividend in February, at which time the Company will announce the record and payment dates for this dividend. It is expected that the first increased dividend will be paid in March of 2014.
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 such forward-looking statements,
including statements regarding the declaration and payment of dividends
in 2014, future share repurchases, 2014 free cash flow, and 2014 cash
taxes and incentive compensation payments. 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,
commodity price fluctuations; increased competition; pricing actions;
failure to implement our optimization and growth initiatives and overall
business strategy; failure to successfully implement our restructuring
actions and/or failure of those actions to achieve the goals and cost
savings intended; business disruption and employee distraction resulting
from our restructuring; changes in our organizational structure and
workforce and resulting restructuring or impairment charges;
environmental and other regulations; 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
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(a) |
The Company provides a projection of free cash flow, which is a non-GAAP measure, because it believes that it is indicative of our ability to pay our quarterly dividends, repurchase common stock, fund acquisitions and other investments and, in the absence of refinancings, to repay our 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, and investors are urged to take into account GAAP measures as well as non-GAAP measures in evaluating the Company. We believe free cash flow gives investors useful insight into how the Company views its liquidity. Nonetheless, the use of free cash flow as a liquidity measure has material limitations because it excludes certain expenditures that are required or that we have 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 business (net of cash divested) and other sales of assets. The Company’s definition of free cash flow may not be comparable to similarly titled measures presented by other companies.
The following reconciliation illustrates two scenarios that show our projected free cash flow for 2014. 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. |
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| (Dollars in Millions, Unaudited) | Scenario 1 | Scenario 2 | ||||||
| Net cash provided by operating activities | $ | 2,475 | $ | 2,525 | ||||
| Capital expenditures | (1,250 | ) | (1,300 | ) | ||||
|
Proceeds from divestitures of businesses (net of cash divested) and other sales of assets |
100 | 175 | ||||||
| Projected Full Year 2014 Free Cash Flow | $ 1,325 | $ | 1,400 | |||||
ABOUT WASTE MANAGEMENT
Source:
Waste Management
Analysts:
Ed Egl, 713-265-1656
eegl@wm.com
or
Media
Toni
Beck, 713-394-5093
tbeck3@wm.com
Web
site: www.wm.com
