附錄99.1
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威馬宣佈2024年第三季度收益
S有機收入強勁增長和成本優化推動創紀錄業績
公司現預計調整後運營EBITDA接近2024年指導的上限
盈淨收購、可持續性投資以及核心固體廢物業務持續增長讓威馬爲2025年再次強勁的一年奠定基礎
休斯頓, 2024 — 10月28日 — 消毒循環（紐交所：WM）今天宣佈，截至2024年9月30日的季度財務業績。
| 三個月截止日期 | 三個月截止日期 | ||||
| 2024年9月30日 （以百萬爲單位，除每股金額外 金額） |
2023年9月30日 (以百萬爲單位，除每股金額和百分比外) | ||||
| 按報告 | 調整後(a) | 按報告 | 調整後(a) | ||
| 營業收入 | $5,609 | $5,609 | $5,198 | $5,198 | |
| 營業收入 | $1,119 | $1,153 | $1,021 | $1,022 | |
| 營業 惡化前利息、稅項、折舊及攤銷前利潤(b) | $1,677 | $1,711 | $1,540 | $1,541 | |
| 營業 惡化前利息、稅項、折舊及攤銷前利潤率 | 29.9% | 30.5% | 29.6% | 29.6% | |
| 淨收益(c) | $760 | $790 | $663 | $664 | |
| 攤薄每股收益 | $1.88 | $1.96 | $1.63 | $1.63 | |
公司第三季度的業績再次展示了我們員工的奉獻精神，我們業務模式的穩定性以及我們業務的實力，” WM的總裁兼首席執行官吉姆·費希表示。「我們在科技、車隊和資產網絡方面的投資，加上我們紀律性的定價方案，擴大了價格增長與服務成本之間的差距。這導致調整後的營業利潤增長了11%，季度利潤率創下30.5%的紀錄。」(a)
費希繼續說道：「我們強勁的業績主要來自我們的回收和處理業務，在那裏，我們在維持一線員工、優化成本結構以及爲客戶提供差異化服務方面付出了努力，推動了盈利增長。此外，我們繼續在可持續增長投資上取得進展，並計劃成功整合消毒循環業務。我們有很多勢頭，將爲年底實現強勁的收尾，這將使我們能夠在2025年再次實現超常增長。」”(a)
欲了解更多信息
廢物管理
網站
www.wm.com
分析師
Ed Egl
713.265.1656
eegl@wm.com
媒體
Toni Werner
media@wm.com
2024年第三季度的重點亮點
| • | 總公司營業收入增長7.9%，核心價格增長6.5%。(d) 除了在定價方面的強勁執行外，營業收入增長超出預期，原因是我們銷售的可回收商品的市場價格較高，填埋場容積顯著增加。公司預計全年營業收入增長約爲6%，高於此前5.75%的上限指引。(g) |
| • | 調整後的營業息稅折舊及攤銷前利潤（EBITDA）在本季度增長了17000萬美元，主要受公司回收和處置業務的推動。調整後的營業息稅折舊及攤銷前利潤（EBITDA）保持率增長了90個點子，達到了30.5%的歷史新高。這一強勁結果使公司有望在2024年交付約65億美元的調整後營業息稅折舊及攤銷前利潤（EBITDA），接近其指引範圍的上限。(a)(e)(g) |
| • | 公司繼續優先考慮技術和自動化以優化其成本結構並提高運營效率。這在營業費用佔營業收入比例方面表現出來，第三季度改善了70個點子，達到了60.6%。這是這一比率連續第四個季度低於61%。 |
| • | 銷售和管理費用佔營業收入的比例爲9.4%，或者在調整基礎上爲8.9%，反映了成本控制方面持續的紀律。(a) |
| • | 本季度公司完成了8個回收項目，目前已完成了39個計劃中的24個自動化和新市場項目。已完成的項目爲北美新增了150萬噸的年度回收能力。(f) |
| • | 公司已將其計劃中的20個可再生天然氣項目中的三個投入運營，包括今年早些時候投入運營的一個，並預計到年底會有四個額外的項目投入運營。公司預計這七個項目明年將貢獻約600萬MMBtu的年產量。(f) |
| • | 今年前九個月，公司從營業活動中獲得了38.8億美元的淨現金流，比去年同期增長了16.2%。 |
| • | 公司預計總資本支出將爲3150萬至32.5億美元，其中約95000萬美元用於可持續增長投資。 |
| • | 強勁的營運現金流增長和謹慎的資本支出導致了截至目前爲止自由現金流增長20.0%。這些結果使公司有望實現其2024年21.5億美元自由現金流指引的高端目標。(a)(g) |
| • | 公司在2024年投資了79000萬美元用於收購，其中大部分是用於固廢業務。收購的業務在2024年爲營業收入貢獻了10800萬美元的增長。此外，公司繼續通過監管審批流程支持計劃中對Stericycle的收購。預計該收購將於2024年第四季度完成。整合計劃進展順利。 |
| • | WM在第三季度發佈了其2024年可持續發展報告，聚焦於三個核心目標 - 物料再利用、能源可再生和社區繁榮。報告詳細介紹了公司的可持續發展目標以及在實現目標方面的進展。 |
Fish總結道：「我們在今年開始時期期待在多個領域取得強勁的執行，而在過去的九個月中，我們已經超過了自己的高期望。展望2025年，我們預計我們的固廢業務將繼續增長，來自可持續增長投資的貢獻將增加，並且Stericycle業務的成功整合將匯聚一起，創造營業收入、收益和自由現金流的重大躍升。」
| (a) | 本新聞稿中標註的信息已調整，並且免費 現金流是非公認會計准則的衡量標準。請參閱下面的 「非公認會計准則財務指標」 和隨附的對賬表 時間表以獲取更多信息。 |
| (b) | 管理層將運營息稅折舊攤銷前利潤定義爲之前的GAAP運營收入 折舊和攤銷；該衡量標準可能無法與其他公司報告的類似標題的指標相提並論。 |
| (c) | 就本新聞稿而言，所有提及 「淨收入」 的內容 參見財務報表細列項目 「歸屬於廢物管理公司的淨收益」 |
| (d) | 核心價格是管理層用來評估有效性的績效指標 我們的定價策略；它不是來自我們的財務報表，可能無法與其他公司提出的指標進行比較。 核心價格基於某些歷史假設，這些假設可能與實際結果不同，以便報告之間的可比性 時段並揭示一段時間內的結果趨勢。 |
| (e) | 2023年第四季度，公司更新了其應報告的細分市場 提高其財務業績的透明度，並通過實質性計劃強調其對可持續發展的承諾 以及對其回收加工和銷售以及WM的持續投資 可再生 能源業務。公司通過四個分部進行報告，即 (i) 藏品 及處置——東線；(ii) 收集和處置 — 西線；(iii) 回收加工和銷售以及 (iv) WM 可再生 能源。該公司的東西方等級以及某些未通過其等級細分市場管理的輔助服務構成其 「館藏」 和 「處置」 業務。 |
| (f) | 該公司收到的單流回收的混合平均價格 本季度銷售的大宗商品價格約爲每噸101美元，去年同期約爲每噸58美元，全年銷售價格約爲每噸58美元 預期收到的價格仍約爲每噸90美元。在第三季度，可再生燃料的平均價格 本季度售出的標準積分爲3.08美元，而去年同期爲2.65美元，自然積分的平均價格爲2.65美元 該季度的天然氣銷售額爲每百萬英熱單位1.80美元，而去年同期爲每百萬英熱單位2.11美元。收到的平均電價 第三季度約爲每兆瓦時60美元，而去年同期約爲每兆瓦時65美元。 |
| (g) | 該公司的2024年財務指導和展望不包括（i）筆交易 以及與收購Stericycle相關的諮詢費用以及 (ii) 與以下內容相關的收盤後財務捐款 收購 Stericycle。 |
該公司將在上午10點舉行電話會議。 美國東部時間2024年10月29日將討論2024年第三季度的業績。本新聞稿中包含的信息將被引用，並且 應與通話一起考慮。
聽衆可以觀看網絡直播的音頻直播 通過訪問investors.wm.com並從網站菜單中選擇 「活動和演講」 進行電話會議。的重播 電話會議結束後，將在同一地點提供網絡音頻直播。
電話會議參與者應註冊到 獲取他們的撥號和密碼詳細信息。這種簡化的流程提高了安全性，並消除了加入通話時的等待時間。
關於 wm
Wm (WM.com) 是北方 美國領先的綜合環境解決方案提供商。前身爲廢物管理，總部設在休斯敦 得克薩斯州，威斯康星州致力於以人爲本，以誠信取得成功。該公司通過其子公司提供 爲全球數百萬住宅、商業、工業和市政客戶提供收集、回收和處置服務 美國和加拿大。憑藉創新的基礎設施和回收利用、有機物和可再生能源的能力，Wm 提供環境保護 爲客戶提供解決方案並與其合作，幫助他們實現可持續發展目標。Wm 擁有最大的處置網絡 還有北美的收集艦隊，是
最大的 消費後材料的回收商，是垃圾填埋氣的有益利用領域的領導者，可再生天然氣網絡不斷擴大 工廠和北美最多的垃圾填埋氣發電廠。WM 的車隊包括超過 12,000 輛天然氣卡車 — 北美同類中最大的重型天然氣卡車隊。要了解有關 Wm 和該公司的更多信息 可持續發展進展和解決方案，請訪問Sustainability.wm.com.
前瞻性陳述
這個 公司不時提供財務和其他數據的估計或預測，對與未來相關的預期發表評論 對當前和未來的事件、情況或表現發表觀點、觀點或信念，並發表看法、看法或信念。這份新聞稿 包含許多此類前瞻性陳述，包括有關我們未來業績或財務業績的所有陳述 業務；財務指導或前景的實現；我們業務的增長和實力；業績驅動因素，包括定價 計劃、成本優化和其他舉措；完善和整合Stericycle收購相關結果和收益； 以及可持續性投資, 升級和項目完成的時機以及相關的結果和收益.你應該查看這些陳述 謹慎行事。它們基於截至發表聲明之日公司已知的事實和情況。這些前瞻性 陳述受風險和不確定性的影響，這些風險和不確定性可能導致實際結果與此類陳述中列出的結果存在重大差異 前瞻性陳述，包括但不限於未能實施我們的優化、自動化、增長和成本節約計劃 和總體業務戰略; 未能從戰略舉措, 投資, 收購中獲得預期的結果, 包括 計劃中的Stericycle收購或新的業務領域；未能確定收購目標，未能完成和整合收購， 包括我們計劃整合Stericycle；我們完善和資助收購Stericycle並實現預期目標的能力 由此帶來的好處，包括成本協同效應；法律、監管和其他可能影響我們能力成本和時機的事項 完成、整合和交付計劃中的Stericycle收購的所有預期收益；現有或新的環境收益；以及 其他法規，包括與新興污染物、氣體排放、可再生能源、擴大生產者責任相關的發展 以及我們的天然氣船隊；導致責任或品牌損害的重大環境、安全或其他事件；未能獲得 並由於土地短缺、公衆的反對或其他原因保留必要的許可證；垃圾填埋能力減弱，導致增加 成本和對處置替代方案的需求；未能吸引、僱用和留住關鍵團隊成員和高素質員工隊伍；增加 由於工會組織活動或工資和勞動相關法規的變化而導致的勞動力成本；由此產生的干擾和成本 惡劣天氣和破壞性氣候事件；未能實現我們的可持續發展目標或執行可持續發展相關戰略 和舉措，包括在計劃的時間表或預期的預算範圍內，因爲中斷、延誤、成本增加或環境變化而導致的 或稅收監管和激勵措施；重點關注和監管與環境和可持續發展相關的披露，這可能會導致 與我們的可持續發展努力相關的成本增加、違規風險、品牌損害和訴訟風險；宏觀經濟狀況， 地緣政治衝突和大規模市場混亂導致勞動力、供應鏈和運輸限制，通貨膨脹 成本壓力和商品價格、燃料和其他能源成本的波動；競爭加劇；定價行動；來自的影響 國際貿易限制；競爭性處置替代方案、垃圾填埋場的廢物轉移和廢物量的減少；弱點 總體經濟狀況和資本市場, 包括經濟衰退的可能性; 金融機構的不穩定; 通過新的稅收立法；燃料短缺；未能開發和保護新技術；技術未能按預期運行； 未能預防、檢測和管理網絡安全事件或未能遵守隱私法規；無法調整和管理好處 以及人工智能的風險；訴訟或政府訴訟的負面結果，包括通過交易獲得的負面結果， 包括收購Stericycle；以及導致減值費用的運營或管理決策或發展。請 另見公司向美國證券交易委員會提交的文件，包括公司最近提交的年度報告的第一部分第1A項 有關這些風險和其他風險的更多信息，請參見隨後的10-Q表季度報告所更新的10-k表格，以及 適用於其業務的不確定性。公司沒有義務更新任何前瞻性陳述，包括財務陳述 估計和預測，無論是由於未來事件、情況或事態發展還是其他原因。
非公認會計准則財務指標
爲了補充其財務信息，公司提交了和/或 可能會在電話會議上討論調整後的攤薄後每股收益、調整後的淨收益、調整後的運營收益 營業息稅折舊攤銷前利潤和利潤率、調整後的銷售和收購費用以及自由現金流。正如定義的那樣，所有這些項目都是非公認會計准則財務指標 在經修訂的1934年《證券交易法》G條中。公司根據公認會計原則報告其財務業績 但認爲討論非公認會計准則指標可以爲投資者提供（i）公司在管理中使用的財務指標 (ii) 通過排除項目，將當前業績與前期業績進行更多有意義的比較
公司不認爲這些反映其基本業務表現的數據具有代表性或預示其運營結果。
此外，公司預計調整後的經營息稅折舊及攤銷前利潤（EBITDA）和利潤率將進行調整，以排除不具代表性或預示公司運營結果的其他事件或情況的影響。這些排除項目目前無法確定，但可能是重大的，如資產減值和一次性項目、出售或訴訟所產生的損益，以及其他項目。由於此類項目發生的可能性、金額和時間的不確定性，公司目前無法提供有關此類預測與可比的普通會計準則（GAAP）衡量結果的定量調和信息。
公司討論自由現金流並提供自由現金流預測，因爲公司認爲這反映了其支付季度分紅、回購普通股、資助收購和其他投資的能力，以及在沒有再融資的情況下償還債務的能力。公司認爲自由現金流能夠幫助投資者深入了解公司對流動性的看法，但將自由現金流用作流動性衡量標準存在重要限制，因爲它排除了一些必要的支出或公司已承諾的支出，如已宣佈的紅利支付和償還債務的要求。公司將自由現金流定義爲營運活動提供的淨現金流，減去資本支出，再加上出售企業和其他資產所得款額（扣除出售所得現金淨額）；該定義可能不可與其他公司報告的同名指標進行比較。
非普通會計準則衡量結果與最爲可比的普通會計準則（GAAP）衡量結果的定量調和信息已包含在隨附時間表中，但不包括預計調整後的經營息稅折舊及攤銷前利潤（EBITDA）和利潤率。非普通會計準則衡量結果不應被視爲符合GAAP的財務指標的替代。
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廢物管理股份公司
簡明合併利潤表
（以百萬爲單位，除每股金額外）
(未經審計)
| 三個月已結束 | 九個月已結束 | |||||||||||||||
| 九月三十日 | 九月三十日 | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| 營業收入 | $ | 5,609 | $ | 5,198 | $ | 16,170 | $ | 15,209 | ||||||||
| 成本和支出： | ||||||||||||||||
| 正在運營 | 3,399 | 3,188 | 9,830 | 9,460 | ||||||||||||
| 銷售、一般和管理 | 525 | 470 | 1,517 | 1,413 | ||||||||||||
| 折舊、損耗和攤銷 | 558 | 519 | 1,615 | 1,545 | ||||||||||||
| 重組 | 2 | — | 2 | 4 | ||||||||||||
| 資產剝離、資產減值和不尋常項目造成的（收益）虧損，淨額 | 6 | — | 62 | (3 | ) | |||||||||||
| 4,490 | 4,177 | 13,026 | 12,419 | |||||||||||||
| 運營收入 | 1,119 | 1,021 | 3,144 | 2,790 | ||||||||||||
| 其他收入（支出）： | ||||||||||||||||
| 利息支出，淨額 | (131 | ) | (127 | ) | (397 | ) | (372 | ) | ||||||||
| 未合併實體的淨收益（虧損）中的權益 | 1 | (18 | ) | 4 | (41 | ) | ||||||||||
| 其他，淨額 | 6 | (4 | ) | 7 | — | |||||||||||
| (124 | ) | (149 | ) | (386 | ) | (413 | ) | |||||||||
| 所得稅前收入 | 995 | 872 | 2,758 | 2,377 | ||||||||||||
| 所得稅支出 | 235 | 210 | 611 | 570 | ||||||||||||
| 合併淨收益 | 760 | 662 | 2,147 | 1,807 | ||||||||||||
| 減去：歸屬於非控股權益的淨收益（虧損） | — | (1 | ) | (1 | ) | (4 | ) | |||||||||
| 歸屬於廢物管理公司的淨收益 | $ | 760 | $ | 663 | $ | 2,148 | $ | 1,811 | ||||||||
| 普通股每股基本收益 | $ | 1.89 | $ | 1.64 | $ | 5.35 | $ | 4.46 | ||||||||
| 攤薄後的每股普通股收益 | $ | 1.88 | $ | 1.63 | $ | 5.33 | $ | 4.44 | ||||||||
| 已發行基本普通股的加權平均值 | 401.5 | 404.0 | 401.5 | 405.8 | ||||||||||||
| 加權平均攤薄後已發行普通股 | 403.2 | 405.9 | 403.2 | 407.6 | ||||||||||||
廢物管理股份公司
簡明合併資產負債表
（以百萬爲單位）
(未經審計)
| 2022年9月30日 | 12月31日 | |||||||
| 2024 | 2023 | |||||||
| 資產 | ||||||||
| 流動資產： | ||||||||
| 現金及現金等價物 | $ | 614 | $ | 458 | ||||
| 應收款項，淨額 | 3,125 | 2,870 | ||||||
| 其他 | 520 | 476 | ||||||
| 總流動資產 | 4,259 | 3,804 | ||||||
| 資產和設備，淨值 | 17,931 | 16,968 | ||||||
| 商譽 | 9,822 | 9,254 | ||||||
| 其他無形資產，淨額 | 742 | 759 | ||||||
| 其他 | 1,976 | 2,038 | ||||||
| 總資產 | $ | 34,730 | $ | 32,823 | ||||
| 負債和股東權益 | ||||||||
| 流動負債: | ||||||||
| 應付賬款、應計負債和遞延收益 | $ | 4,103 | $ | 3,892 | ||||
| 開多次數 | 676 | 334 | ||||||
| 流動負債合計 | 4,779 | 4,226 | ||||||
| 長期債務，減去當期部分 | 15,977 | 15,895 | ||||||
| 其他 | 6,002 | 5,806 | ||||||
| 負債合計 | 26,758 | 25,927 | ||||||
| 股東權益： | ||||||||
| 廢物管理公司股東權益 | 7,979 | 6,903 | ||||||
| 非控制權益 | (7 | ) | (7 | ) | ||||
| 股東權益總計 | 7,972 | 6,896 | ||||||
| 負債和所有者權益總額 | $ | 34,730 | $ | 32,823 | ||||
WASTE MANAGEMENT, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Millions)
(Unaudited)
| Nine Months Ended | ||||||||
| September 30, | ||||||||
| 2024 | 2023 | |||||||
| Cash flows from operating activities: | ||||||||
| Consolidated net income | $ | 2,147 | $ | 1,807 | ||||
| Adjustments to reconcile consolidated net income to net cash provided by operating activities: | ||||||||
| Depreciation, depletion and amortization | 1,615 | 1,545 | ||||||
| Other | 271 | 278 | ||||||
| Change in operating assets and liabilities, net of effects of acquisitions and divestitures | (154 | ) | (293 | ) | ||||
| Net cash provided by operating activities | 3,879 | 3,337 | ||||||
| Cash flows from investing activities: | ||||||||
| Acquisitions of businesses, net of cash acquired | (782 | ) | (139 | ) | ||||
| Capital expenditures | (2,116 | ) | (1,853 | ) | ||||
| Proceeds from divestitures of businesses and other assets, net of cash divested | 99 | 68 | ||||||
| Other, net | (40 | ) | (83 | ) | ||||
| Net cash used in investing activities | (2,839 | ) | (2,007 | ) | ||||
| Cash flows from financing activities: | ||||||||
| New borrowings | 10,914 | 17,319 | ||||||
| Debt repayments | (10,619 | ) | (16,991 | ) | ||||
| Common stock repurchase program | (262 | ) | (990 | ) | ||||
| Cash dividends | (909 | ) | (855 | ) | ||||
| Exercise of common stock options | 42 | 29 | ||||||
| Tax payments associated with equity-based compensation transactions | (49 | ) | (28 | ) | ||||
| Other, net | (20 | ) | (9 | ) | ||||
| Net cash used in financing activities | (903 | ) | (1,525 | ) | ||||
| Effect of exchange rate changes on cash, cash equivalents and restricted cash and cash equivalents | (2 | ) | — | |||||
| (Decrease) increase in cash, cash equivalents and restricted cash and cash equivalents | 135 | (195 | ) | |||||
| Cash, cash equivalents and restricted cash and cash equivalents at beginning of period | 552 | 445 | ||||||
| Cash, cash equivalents and restricted cash and cash equivalents at end of period | $ | 687 | $ | 250 | ||||
WASTE MANAGEMENT, INC.
SUMMARY DATA SHEET
(In Millions)
(Unaudited)
Operating Revenues by Line of Business
| Three Months Ended | ||||||||||||||||||||||||
| September 30, | ||||||||||||||||||||||||
| 2024 | 2023 | |||||||||||||||||||||||
| Gross | Intercompany | Net | Gross | Intercompany | Net | |||||||||||||||||||
| Operating | Operating | Operating | Operating | Operating | Operating | |||||||||||||||||||
| Revenues | Revenues | Revenues | Revenues | Revenues | Revenues | |||||||||||||||||||
| Commercial | $ | 1,564 | $ | (205 | ) | $ | 1,359 | $ | 1,464 | $ | (179 | ) | $ | 1,285 | ||||||||||
| Industrial | 1,003 | (206 | ) | 797 | 982 | (194 | ) | 788 | ||||||||||||||||
| Residential | 897 | (22 | ) | 875 | 875 | (23 | ) | 852 | ||||||||||||||||
| Other collection | 822 | (57 | ) | 765 | 773 | (55 | ) | 718 | ||||||||||||||||
| Total collection | 4,286 | (490 | ) | 3,796 | 4,094 | (451 | ) | 3,643 | ||||||||||||||||
| Landfill | 1,345 | (422 | ) | 923 | 1,259 | (412 | ) | 847 | ||||||||||||||||
| Transfer | 641 | (276 | ) | 365 | 594 | (263 | ) | 331 | ||||||||||||||||
| Total Collection and Disposal | 6,272 | (1,188 | ) | 5,084 | 5,947 | (1,126 | ) | 4,821 | ||||||||||||||||
| Recycling Processing and Sales | 503 | (71 | ) | 432 | 386 | (81 | ) | 305 | ||||||||||||||||
| WM Renewable Energy | 88 | (1 | ) | 87 | 68 | (1 | ) | 67 | ||||||||||||||||
| Corporate and Other | 12 | (6 | ) | 6 | 12 | (7 | ) | 5 | ||||||||||||||||
| Total | $ | 6,875 | $ | (1,266 | ) | $ | 5,609 | $ | 6,413 | $ | (1,215 | ) | $ | 5,198 | ||||||||||
| Nine Months Ended | ||||||||||||||||||||||||
| September 30, | ||||||||||||||||||||||||
| 2024 | 2023 | |||||||||||||||||||||||
| Gross | Intercompany | Net | Gross | Intercompany | Net | |||||||||||||||||||
| Operating | Operating | Operating | Operating | Operating | Operating | |||||||||||||||||||
| Revenues | Revenues | Revenues | Revenues | Revenues | Revenues | |||||||||||||||||||
| Commercial | $ | 4,591 | $ | (586 | ) | $ | 4,005 | $ | 4,300 | $ | (508 | ) | $ | 3,792 | ||||||||||
| Industrial | 2,915 | (592 | ) | 2,323 | 2,889 | (563 | ) | 2,326 | ||||||||||||||||
| Residential | 2,659 | (67 | ) | 2,592 | 2,595 | (73 | ) | 2,522 | ||||||||||||||||
| Other collection | 2,354 | (162 | ) | 2,192 | 2,207 | (161 | ) | 2,046 | ||||||||||||||||
| Total collection | 12,519 | (1,407 | ) | 11,112 | 11,991 | (1,305 | ) | 10,686 | ||||||||||||||||
| Landfill | 3,813 | (1,225 | ) | 2,588 | 3,672 | (1,220 | ) | 2,452 | ||||||||||||||||
| Transfer | 1,819 | (797 | ) | 1,022 | 1,719 | (779 | ) | 940 | ||||||||||||||||
| Total Collection and Disposal | 18,151 | (3,429 | ) | 14,722 | 17,382 | (3,304 | ) | 14,078 | ||||||||||||||||
| Recycling Processing and Sales | 1,414 | (209 | ) | 1,205 | 1,154 | (239 | ) | 915 | ||||||||||||||||
| WM Renewable Energy | 228 | (3 | ) | 225 | 201 | (3 | ) | 198 | ||||||||||||||||
| Corporate and Other | 36 | (18 | ) | 18 | 38 | (20 | ) | 18 | ||||||||||||||||
| Total | $ | 19,829 | $ | (3,659 | ) | $ | 16,170 | $ | 18,775 | $ | (3,566 | ) | $ | 15,209 | ||||||||||
WASTE MANAGEMENT, INC.
SUMMARY DATA SHEET
(In Millions)
(Unaudited)
Internal Revenue Growth
| Period-to-Period Change for the | Period-to-Period Change for the | ||||||||||||||||||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||
| September 30, 2024 vs. 2023 | September 30, 2024 vs. 2023 | ||||||||||||||||||||||||||||||
| As a % of | As a % of | As a % of | As a % of | ||||||||||||||||||||||||||||
| Related | Total | Related | Total | ||||||||||||||||||||||||||||
| Amount | Business(a) | Amount | Company(b) | Amount | Business(a) | Amount | Company(b) | ||||||||||||||||||||||||
| Collection and Disposal | $ | 188 | 4.1 | % | $ | 609 | 4.6 | % | |||||||||||||||||||||||
| Recycling Processing and Sales and WM Renewable Energy(c) | 108 | 28.1 | 236 | 20.5 | |||||||||||||||||||||||||||
| Energy surcharge and mandated fees | (19 | ) | (7.9 | ) | (55 | ) | (7.6 | ) | |||||||||||||||||||||||
| Total average yield(d) | $ | 277 | 5.3 | % | $ | 790 | 5.2% | ||||||||||||||||||||||||
| Volume(e) | 70 | 1.4 | 75 | 0.5 | |||||||||||||||||||||||||||
| Internal revenue growth | 347 | 6.7 | 865 | 5.7 | |||||||||||||||||||||||||||
| Acquisitions | 71 | 1.4 | 108 | 0.7 | |||||||||||||||||||||||||||
| Divestitures | (4 | ) | (0.1 | ) | (5 | ) | — | ||||||||||||||||||||||||
| Foreign currency translation | (3 | ) | (0.1 | ) | (7 | ) | (0.1) | ||||||||||||||||||||||||
| Total | $ | 411 | 7.9 | % | $ | 961 | 6.3% | ||||||||||||||||||||||||
| Period-to-Period Change for the | Period-to-Period Change for the | |||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, 2024 vs. 2023 | September 30, 2024 vs. 2023 | |||||||||||||||
| As a % of Related Business(a) | As a % of Related Business(a) | |||||||||||||||
| Yield | Volume(f) | Yield | Volume | |||||||||||||
| Commercial | 5.8 | % | 0.9 | % | 6.3 | % | 1.0 | % | ||||||||
| Industrial | 4.8 | (4.1 | ) | 5.1 | (4.1 | ) | ||||||||||
| Residential | 5.1 | (2.9 | ) | 6.0 | (3.0 | ) | ||||||||||
| Total collection | 5.1 | (1.6 | ) | 5.6 | (1.6 | ) | ||||||||||
| MSW | 3.1 | 5.7 | 3.2 | 3.9 | ||||||||||||
| Transfer | 3.6 | (1.3 | ) | 4.6 | 1.7 | |||||||||||
| Total Collection and Disposal | 4.1 | % | 0.3 | % | 4.6 | % | 0.1 | % | ||||||||
| (a) | Calculated by dividing the increase or decrease for the current year period by the prior year period’s related business revenue adjusted to exclude the impacts of divestitures for the current year period. |
| (b) | Calculated by dividing the increase or decrease for the current year period by the prior year period’s total Company revenue adjusted to exclude the impacts of divestitures for the current year period. |
| (c) | Includes combined impact of commodity price variability in both our Recycling Processing and Sales and WM Renewable Energy segments, as well as changes in certain recycling fees charged by our collection and disposal operations. |
| (d) | The amounts reported herein represent the changes in our revenue attributable to average yield for the total Company. |
| (e) | Includes activities from our Corporate and Other businesses. |
| (f) | Workday adjusted volume impact. |
WASTE MANAGEMENT, INC.
SUMMARY DATA SHEET
(In Millions)
(Unaudited)
Free Cash Flow(a)
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Net cash provided by operating activities | $ | 1,358 | $ | 1,263 | $ | 3,879 | $ | 3,337 | ||||||||
| Capital expenditures to support the business | (598 | ) | (493 | ) | (1,545 | ) | (1,456 | ) | ||||||||
| Proceeds from divestitures of businesses and other assets, net of cash divested | 41 | 22 | 99 | 68 | ||||||||||||
| Free cash flow without sustainability growth investments | 801 | 792 | 2,433 | 1,949 | ||||||||||||
| Capital expenditures - sustainability growth investments | (183 | ) | (180 | ) | (571 | ) | (397 | ) | ||||||||
| Free cash flow | $ | 618 | $ | 612 | $ | 1,862 | $ | 1,552 | ||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Supplemental Data | ||||||||||||||||
| Internalization of waste, based on disposal costs | 69.6 | % | 69.0 | % | 69.1 | % | 68.8 | % | ||||||||
| Landfill depletable tons (in millions) | 32.9 | 31.6 | 93.9 | 92.7 | ||||||||||||
| Acquisition Summary(b) | ||||||||||||||||
| Gross annualized revenue acquired | $ | 217 | $ | 10 | $ | 295 | $ | 121 | ||||||||
| Total consideration, net of cash acquired | 540 | 20 | 780 | 138 | ||||||||||||
| Cash paid for acquisitions consummated during the period, net of cash acquired | 540 | 23 | 773 | 134 | ||||||||||||
| Cash paid for acquisitions including contingent consideration and other items from prior periods, net of cash acquired | 540 | 21 | 790 | 139 | ||||||||||||
| Landfill Depletion and Accretion Expenses: | ||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Landfill depletion expense: | ||||||||||||||||
| Cost basis of landfill assets | $ | 166 | $ | 155 | $ | 474 | $ | 453 | ||||||||
| Asset retirement costs | 37 | 33 | 106 | 101 | ||||||||||||
| Total landfill depletion expense(c) | 203 | 188 | 580 | 554 | ||||||||||||
| Accretion expense | 33 | 32 | 99 | 97 | ||||||||||||
| Landfill depletion and accretion expense | $ | 236 | $ | 220 | $ | 679 | $ | 651 | ||||||||
| (a) | The summary of free cash flow 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. |
| (b) | Represents amounts associated with business acquisitions consummated during the applicable period except where noted. |
| (c) | For both the third quarter of 2024 and the nine months ended September 30, 2024, the increase in landfill depletion expense was driven by changes in amortization rates from revisions in landfill and volume increases, partially offset by the closure of a landfill in our East Tier. |
WASTE MANAGEMENT, INC.
RECONCILIATION OF CERTAIN NON-GAAP MEASURES
(In Millions, Except Per Share Amounts)
(Unaudited)
| Three Months Ended September 30, 2024 | ||||||||||||||||||||
| Income from | Pre-tax | Tax | Net | Diluted Per | ||||||||||||||||
| Operations | Income | Expense | Income(a) | Share Amount | ||||||||||||||||
| As reported amounts | $ | 1,119 | $ | 995 | $ | 235 | $ | 760 | $ | 1.88 | ||||||||||
| Adjustments: | ||||||||||||||||||||
| Stericycle transaction costs | 40 | 40 | 5 | 35 | 0.09 | |||||||||||||||
| Gain from divestment, asset impairments and unusual items, net | (6 | ) | (6 | ) | (1 | ) | (5 | ) | (0.01 | ) | ||||||||||
| As adjusted amounts | $ | 1,153 | $ | 1,029 | $ | 239 | (b) | $ | 790 | $ | 1.96 | |||||||||
| Depreciation, depletion and amortization | 558 | |||||||||||||||||||
| Adjusted operating EBITDA | $ | 1,711 | ||||||||||||||||||
| Adjusted operating EBITDA margin | 30.5 | % | ||||||||||||||||||
| Three Months Ended September 30, 2023 | ||||||||||||||||||||
| Income from | Pre-tax | Tax | Net | Diluted Per | ||||||||||||||||
| Operations | Income | Expense | Income(a) | Share Amount | ||||||||||||||||
| As reported amounts | $ | 1,021 | $ | 872 | $ | 210 | $ | 663 | $ | 1.63 | ||||||||||
| Adjustment: | ||||||||||||||||||||
| Collective bargaining agreement costs | 1 | 1 | — | 1 | — | |||||||||||||||
| As adjusted amounts | $ | 1,022 | $ | 873 | $ | 210 | (b) | $ | 664 | $ | 1.63 | |||||||||
| Depreciation, depletion and amortization | 519 | |||||||||||||||||||
| Adjusted operating EBITDA | $ | 1,541 | ||||||||||||||||||
| Adjusted operating EBITDA margin | 29.6 | % | ||||||||||||||||||
| (a) | For purposes of this press release table, all references to “Net income” refer to the financial statement line item “Net income attributable to Waste Management, Inc.” |
| (b) | The Company calculates its effective tax rate based on actual dollars. When the effective tax rate is calculated by dividing the Tax Expense amount in the table above by the Pre-tax Income amount, differences occur due to rounding, as these items have been rounded in millions. The third quarter 2024 and 2023 adjusted effective tax rates were 23.3% and 24.1%, respectively. |
WASTE MANAGEMENT, INC.
RECONCILIATION OF CERTAIN NON-GAAP MEASURES
(In Millions)
(Unaudited)
| Three Months Ended September 30, 2024 | ||||||||||||||||||||
| Recycling | WM | |||||||||||||||||||
| Collection | Processing | Renewable | Corporate | |||||||||||||||||
| and Disposal(a)(b) | and Sales(a) | Energy(b) | and Other | Total | ||||||||||||||||
| Operating revenues, as reported | $ | 5,084 | $ | 432 | $ | 87 | $ | 6 | $ | 5,609 | ||||||||||
| Income from operations, as reported | $ | 1,426 | $ | 21 | $ | 28 | $ | (356 | ) | $ | 1,119 | |||||||||
| Depreciation, depletion and amortization | 491 | 34 | 9 | 24 | 558 | |||||||||||||||
| Operating EBITDA, as reported | $ | 1,917 | $ | 55 | $ | 37 | $ | (332 | ) | $ | 1,677 | |||||||||
| Adjustments: | ||||||||||||||||||||
| Stericycle transaction costs | — | — | — | 40 | 40 | |||||||||||||||
| Gain from divestment, asset impairments and unusual items, net | (18 | ) | — | 7 | 5 | (6 | ) | |||||||||||||
| (18 | ) | — | 7 | 45 | 34 | |||||||||||||||
| Adjusted operating EBITDA | $ | 1,899 | $ | 55 | $ | 44 | $ | (287 | ) | $ | 1,711 | |||||||||
| Operating EBITDA margin, as reported | 37.7 | % | 12.7 | % | 42.5 | % | N/A | 29.9 | % | |||||||||||
| Adjusted operating EBITDA margin | 37.4 | % | 12.7 | % | 50.6 | % | N/A | 30.5 | % | |||||||||||
| Three Months Ended September 30, 2023 | ||||||||||||||||||||
| Recycling | WM | |||||||||||||||||||
| Collection | Processing | Renewable | Corporate | |||||||||||||||||
| and Disposal(a)(b) | and Sales(a) | Energy(b) | and Other | Total | ||||||||||||||||
| Operating revenues, as reported | $ | 4,821 | $ | 305 | $ | 67 | $ | 5 | $ | 5,198 | ||||||||||
| Income from operations, as reported | $ | 1,259 | $ | 18 | $ | 17 | $ | (273 | ) | $ | 1,021 | |||||||||
| Depreciation, depletion and amortization | 458 | 28 | 8 | 25 | 519 | |||||||||||||||
| Operating EBITDA, as reported | $ | 1,717 | $ | 46 | $ | 25 | $ | (248 | ) | $ | 1,540 | |||||||||
| Adjustment: | ||||||||||||||||||||
| Collective bargaining agreement costs | 1 | — | — | — | 1 | |||||||||||||||
| Adjusted operating EBITDA | $ | 1,718 | $ | 46 | $ | 25 | $ | (248 | ) | $ | 1,541 | |||||||||
| Operating EBITDA margin, as reported | 35.6 | % | 15.1 | % | 37.3 | % | N/A | 29.6 | % | |||||||||||
| Adjusted operating EBITDA margin | 35.6 | % | 15.1 | % | 37.3 | % | N/A | 29.6 | % | |||||||||||
| (a) | Certain fees related to the processing of recycled material we collect are included within our Collection and Disposal businesses. The amounts in income from operations for the three months ended September 30, 2024 and 2023 are $29 million and $16 million, respectively. |
| (b) | WM Renewable Energy pays a 15% intercompany royalty to our Collection and Disposal businesses for landfill gas. The total amount of royalties in income from operations for the three months ended September 30, 2024 and 2023, are $13 million and $10 million, respectively. |
WASTE MANAGEMENT, INC.
RECONCILIATION OF CERTAIN NON-GAAP MEASURES
(In Millions)
(Unaudited)
| Three Months Ended | ||||||||||||||||
| September 30, 2024 | September 30, 2023 | |||||||||||||||
| As a % of | As a % of | |||||||||||||||
| Amount | Revenues | Amount | Revenues | |||||||||||||
| Adjusted SG&A Expenses and Adjusted SG&A Expenses Margin | ||||||||||||||||
| Operating revenues, as reported | $ | 5,609 | $ | 5,198 | ||||||||||||
| SG&A expenses, as reported | $ | 525 | 9.4 | % | $ | 470 | 9.0 | % | ||||||||
| Adjustments: | ||||||||||||||||
| Stericycle transaction costs | (26 | ) | — | |||||||||||||
| Collective bargaining agreement costs | — | (1 | ) | |||||||||||||
| SG&A expenses, as adjusted | $ | 499 | 8.9 | % | $ | 469 | 9.0 | % | ||||||||
| 2024 Projected Free Cash Flow Reconciliation(a) | Scenario 1 | Scenario 2 | ||||||
| Net cash provided by operating activities | $ | 5,125 | $ | 5,300 | ||||
| Capital expenditures to support the business | (2,225 | ) | (2,275 | ) | ||||
| Proceeds from divestitures of businesses and other assets, net of cash divested | 125 | 150 | ||||||
| Free cash flow without sustainability growth investments | $ | 3,025 | $ | 3,175 | ||||
| Capital expenditures - sustainability growth investments | (925 | ) | (975 | ) | ||||
| Free cash flow | $ | 2,100 | $ | 2,200 | ||||
| (a) | The reconciliation includes two scenarios that illustrate our projected free cash flow range for 2024. 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.
SUPPLEMENTAL INFORMATION PROVIDED FOR ILLUSTRATIVE PURPOSES ONLY
(In Millions)
(Unaudited)
Diversity in the structure of recycling contracts results in different accounting treatment for commodity rebates. In accordance with revenue recognition guidance, our Company records gross recycling revenue and records rebates paid to customers as cost of goods sold. Other contract structures allow for netting of rebates against revenue.
Additionally, there are differences in whether companies adjust for accretion expense in their calculation of EBITDA. Our Company does not adjust for landfill accretion expenses when calculating operating EBITDA, while other companies do adjust it for the calculation of their EBITDA measure.
The table below illustrates the impact that differing contract structures and treatment of accretion expense has on the Company’s adjusted operating EBITDA margin results. This information has been provided to enhance comparability and is not intended to replace or adjust GAAP reported results.
| Three Months Ended | ||||||||||||||||
| September 30, 2024 | September 30, 2023 | |||||||||||||||
| Amount | Change in Adjusted Operating EBITDA Margin | Amount | Change in Adjusted Operating EBITDA Margin | |||||||||||||
| Recycling commodity rebates | $ | 240 | 1.4 | % | $ | 143 | 0.9 | % | ||||||||
| Accretion expense | $ | 33 | 0.6 | % | $ | 32 | 0.6 | % | ||||||||
| Nine Months Ended | ||||||||||||||||
| September 30, 2024 | September 30, 2023 | |||||||||||||||
| Amount | Change in Adjusted Operating EBITDA Margin | Amount | Change in Adjusted Operating EBITDA Margin | |||||||||||||
| Recycling commodity rebates | $ | 643 | 1.3 | % | $ | 433 | 0.9 | % | ||||||||
| Accretion expense | $ | 99 | 0.6 | % | $ | 97 | 0.6 | % | ||||||||