Waste Management Posts Earnings
Waste Management Inc on Tuesday posted its results for the 2014 fourth quarter as well as for the 2014 full year. Revenues for the company’s fourth quarter were $3.44 billion compared to $3.5 billion for the same period in 2013.
Net income for the fourth quarter ended at $590 million equal to $1.28 per share, compared to a $605 million net loss or -$1.29 per share for the 2013 fourth quarter.
Adjusted income excluding special items was $308 million equal to 67 cents per share for the fourth quarter of 2014 in comparison to $263 million equal 56 cents a share for the 2013 fourth quarter.
The adjusted 2014 fourth quarter results excluded a tax affect of 61 cents per share primarily from the sale of a waste energy business offset partly by charges to impair assets.
For the full 2014 year, the company reported its revenue at $14 billion, compared to 2013 when the revenue reached $13.98 billion. Earnings per share were $2.78 for the full year of 2014, with 21 cents for the full year of 2013.
On an adjusted basis, which excluded special items earnings per share ended at $2.47 for all of 2014, versus the full year of 2013 at $2.15.
CEO and President David Steiner said the company was able to build momentum during the first 9 months of 2014 and the momentum continued through the fourth quarter.
Strong pricing and tight cost controls delivered growth for the traditional solid waste business as operational income was up $36 million and operations margin was up by 130 basis points.
In addition, operating EBITDA in its traditional business of solid waste was up by $25 million and margins for EBITDA expanded 100 basis points. For the seventh straight quarter, yield was a minimum of 2% and volumes were better sequentially for the fourth straight quarter.
Cost of operations saw improvement by $97 million and as a revenue percent, was up by 170 basis points in comparison to the fourth quarter a year ago.