Form 8-K

 

 

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): February 14, 2013

 

 

Waste Management, Inc.

(Exact Name of Registrant as Specified in Charter)

 

 

 

Delaware   1-12154   73-1309529

(State or Other Jurisdiction

of Incorporation)

 

(Commission

File Number)

 

(IRS Employer

Identification No.)

 

1001 Fannin, Suite 4000 Houston, Texas   77002
(Address of Principal Executive Offices)   (Zip Code)

Registrant’s Telephone number, including area code: (713) 512-6200

(Former Name or Former Address, if Changed Since Last Report)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 


Item 2.02. Results of Operations and Financial Condition.

Waste Management, Inc. (the “Company”) issued a press release this morning announcing its financial results for the fourth quarter and full year ended December 31, 2012, a copy of which is attached hereto as Exhibit 99.1. The Company is holding a conference call to discuss these results beginning at 9:00 a.m. Central Time this morning. The call will be webcast live and may be heard by accessing the Investor Relations section of the Company’s website at www.wm.com. The call may also be heard by dialing (877) 710-6139 and entering access code 88156298. To access a replay telephonically, please dial (855) 859-2056 and use the replay conference ID number 88156298.

On the call, management of the Company is expected to discuss certain non-GAAP financial measures that are included in the Company’s press release. The Company has provided information regarding its use of such non-GAAP measures and reconciliations of such measures to their most comparable GAAP measures in the footnote and schedules to the press release.

In addition to the non-GAAP measures presented in the press release, management is also expected to discuss adjusted operating expenses as a percent of adjusted revenues, adjusted SG&A expenses, adjusted SG&A expenses as a percent of adjusted revenues and adjusted income from operations excluding depreciation and amortization. Management believes these non-GAAP measures provide investors with information to better enable them to evaluate the Company’s performance by excluding items that management believes are not representative of our performance or indicative of our results of operations. The reconciliation of these additional non-GAAP measures to the most directly comparable GAAP measures are shown below.

Reconciliation of Certain Non-GAAP Measures

(Dollars In Millions)

(Unaudited)

 

Adjusted Operating Expenses as a Percent of Adjusted Revenues

   Quarters Ended
December 31,
 
   2012     2011 (a)  

As reported:

  

Operating revenues

   $ 3,434      $ 3,406   

Operating expenses

   $ 2,224      $ 2,145   

Adjustments:

  

Operating revenues—Oakleaf related integration activities

   $ 8      $  —     

Operating expenses—Legal reserves and landfill operating costs

   $ (10   $ —     

Operating expenses—Oakleaf related integration activities

   $ —        $ (2

As adjusted:

  

Operating revenues

   $ 3,442      $ 3,406   

Operating expenses

   $ 2,214      $ 2,143   

Adjusted Operating Expenses as a Percent of Adjusted Revenues

     64.3     62.9

 

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Reconciliation of Certain Non-GAAP Measures

(Dollars In Millions)

(Unaudited)

 

     Quarters Ended December 31,  
Adjusted SG&A Expenses as a Percent of Adjusted Revenues    2012     2011 (a)  

As reported:

    

Operating revenues

   $ 3,434      $ 3,406   

SG&A expenses

   $ 356      $ 407   

Adjustments:

    

Operating revenues—Oakleaf related integration activities

   $ 8      $ —      

SG&A expenses—Oakleaf related integration activities

   $ (1   $ (2

SG&A expenses—Litigation

   $ —         $ (24

As adjusted:

    

Operating revenues

   $ 3,442      $ 3,406   

SG&A expenses (b)

   $ 355      $ 381   

Adjusted SG&A Expenses as a Percent of Adjusted Revenues (c)

     10.3     11.2

 

Adjusted Income from Operations    Quarter Ended
December  31,

2012
 

Income from Operations, as reported

   $ 484   

Adjustments to Income from Operations:

  

Asset impairments, legal reserves and landfill operating costs

     38   

Restructuring charges and Oakleaf related integration activities

     25   
  

 

 

 
     63   
  

 

 

 

Adjusted Income from Operations

   $ 547   

Add back: Depreciation and Amortization

     326   
  

 

 

 

Further Adjusted Income from Operations, excl. Depreciation and Amortization

   $ 873   
  

 

 

 

 

(a) Our financial results for the fourth quarter and full year 2011 were adjusted to exclude the impact of our then recently acquired Oakleaf operations. However, for purposes of this year-over-year comparison, we have included the impact of the Oakleaf operations in the results of both 2012 and 2011, except for certain integration costs.
(b) Adjusted SG&A expenses for fourth quarter 2012 improved $26 million as compared with fourth quarter 2011.
(c) Adjusted SG&A expenses as a percent of revenues for fourth quarter 2012 improved 90 basis points as compared with fourth quarter 2011.

 

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Item 9.01. Financial Statements and Exhibits.

(d) Exhibits

 

Exhibit 99.1:    Press Release dated February 14, 2013

 

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.

 

    WASTE MANAGEMENT, INC.
Date: February 14, 2013     By:   /s/ Rick L Wittenbraker
      Rick L Wittenbraker
      Senior Vice President

 

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Exhibit Index

 

Exhibit

Number

  

Description

99.1    Press Release dated February 14, 2013

 

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