Before we get started, let me remind you that in addition to our earnings press release and the press release announcing our restructuring that were issued this morning, we have filed a Form 8-K that includes the earnings press release as Exhibit 99.1 and is available on our website at www.wm.com. The Form 8-K, the press releases and the schedule to the earnings press release include important information that you should refer to.During the call, you'll hear certain forward-looking statements based on current expectations, projections, estimates, opinions or beliefs about future periods. Such statements are subject to risks and uncertainties that could cause actual results to differ materially. Some of these risks and uncertainties are detailed in today's press releases and our filings with the Securities and Exchange Commission, including our most recent Form 10-K. Additionally, during the call, David and Steve will discuss our earnings per diluted share, which they may refer to as EPS or earnings per share, on an "as adjusted" basis. Our EPS and net income, as well as measures of operating expenses, SG&A expenses and expenses as a percent of revenue, have been adjusted to exclude items detailed in our earnings press release that management believes do not reflect our fundamental business performance or are not indicative of our results of operations. These measures, in addition to free cash flow are non-GAAP measures. Please refer to the earnings press release footnote and schedule attached thereto, together with item 2.02 of the Form 8-K filed today, both of which can be found on the company's website at www.wm.com, for a reconciliation to the most comparable GAAP measures and additional information about the use of non-GAAP measures. David and Steve will also discuss our results in the areas of internal revenue growth from yield and internal revenue growth from volume. Unless otherwise stated, please note that any references to yield or volume results or more specifically referring to internal revenue growth from yield and volume.
This call is being recorded and will be available 24 hours a day, beginning approximately 1:00 p.m. Eastern Time today until 5:00 p.m. Eastern Time on August 9. To hear a replay of the call over the Internet, access the Waste Management website at www.wm.com. To hear a telephonic replay of the call, dial (855) 859-2056 and enter reservation code 94048819. Time sensitive information provided during today's call, which is occurring on July 26, 2012, may no longer be accurate at the time of a replay. Any redistribution, retransmission or rebroadcast of this call in any form without the express written consent of Waste Management is prohibited.Now I turn the call over to Waste Management's CEO, David Steiner. David P. Steiner Hey, Ted, and good morning from Houston. In the second quarter of 2012, we earned $0.52 per share, a 4% increase when compared to the second quarter of 2011, as we grew both our revenue and our net income. Our core solid waste business continues to perform well as the combined income from operations for our collection landfill and transportation business grew 3.4%, and margins in our core business expanded by 60 basis points. Our core solid waste business has seen steady improvement, and we expect that to accelerate into 2013 as a result of our current restructuring and our field-based initiatives. We also saw a second consecutive quarter of volume growth in our core solid waste business. So our core business continued to perform well, but the overall company performance was dragged down by $0.07 per share of headwinds, primarily related to declining commodity prices. Internal revenue growth from volumes was positive in the second quarter and has shown good stability over the first 6 months of the year. We saw positive volume growth in each of our industrial, special waste and recycling operations. Our residential business was still negative, but the rate of decline has improved each of the last 6 quarters. We'd like to see more consistent growth in our MSW and Commercial business, however, our volumes in those lines are trending pretty much as we expected. As such, we still expect to achieve our full year volume guidance of flat to slightly positive, with the most likely scenario having volume slightly positive for the full year. Read the rest of this transcript for free on seekingalpha.com