Earnings

Waste Management reports Q4 growth

Waste Management, headquartered in Houston, reports revenues of $3.85 billion in the fourth quarter of 2019. In the same quarter of the prior year, revenues were $3.84 billion. Net income for the quarter was $447 million compared with net income of $531 million for the fourth quarter of 2018. On an adjusted basis, earnings per diluted share were $1.19 for the fourth quarter of 2019, compared with $1.13 for the fourth quarter of 2018.

The company says revenue growth in Q4 was driven by strong organic growth in its collection and disposal business, which contributed $88 million of incremental revenue. Throughout 2019, strong revenue growth from the collection and disposal business was partially offset by recycling commodity price headwinds. The sharp decline in market prices for recycled commodities led to a $104 million year-over-year decline in revenue from the company’s recycling line of business in Q4 and a $244 million decline for the full year.

Adjusted operating EBITDA was $1.12 billion for Q4 and $4.38 billion for the year. On a year-over-year basis, adjusted operating EBITDA grew $28 million in Q4 and $167 million for the year. The company says operating EBITDA in its recycling line of business declined $12 million when comparing Q4 of 2019 with the same period in 2018, noting a 35 percent decline in market prices for recycled commodities during 2019. For the company’s collection and disposal business, adjusted operating EBITDA grew $120 million, or 9.9 percent, in the fourth quarter and $402 million, or 8.5 percent, for the year.

For 2019, the company reports revenues of $15.46 billion compared with $14.91 billion for 2018.