- Revenue increased by 1.9%, or $67 million.
- Internal revenue growth from yield for collection and disposal operations was 2.1%. The Company’s fuel surcharge added 0.4% to total revenue. Year to date yield is 1.7%.
- Core price, which consists of price increases and fees, other than the Company’s fuel surcharge, net of rollbacks, was 3.6%, compared with 2.5% in the second quarter of 2012. Rollbacks were reduced by over 45% from the second quarter of 2012, without a material increase in the Company’s churn rate.
- Internal revenue growth from volume was negative 0.6%, down from the first quarter 2013 work-day adjusted volume improvement of 0.8%, primarily driven by a negative swing in recycling volumes.
- Average recycling commodity prices were approximately 12.5% lower in the second quarter of 2013 compared with the prior year period. In total, recycling operations negatively affected earnings by $0.05 per diluted share in the second quarter when compared to the prior year period, versus previous expectations of negative $0.03, which created the additional $0.02 headwind referenced above. The Company now expects a full-year negative impact of $0.08 per share from its recycling operations compared to 2012. Originally, the Company expected a negative impact of $0.02 per share for 2013.
- Operating expenses increased by $51 million. The majority of the increase relates to higher operating costs from acquired operations, increased costs in the Company’s recycling operations stemming from China’s restrictions on non-conforming materials in imported recycling commodities, and the timing of maintenance costs at its waste-to-energy facilities.
- SG&A expenses improved by $21 million compared with the second quarter of 2012 and improved to 10.0% of revenue from 10.8% in the prior year period.
- Net cash provided by operating activities was $545 million; capital expenditures were $235 million; and free cash flow was $347 million. (b)
- The Company returned $171 million to shareholders in the form of dividends.
- The effective tax rate was approximately 33.2%.
Waste Management Announces Second Quarter Earnings
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