Stay in the Know - Subscribe to Our Newsletters
Join a network of more than 90,000 waste and recycling industry professionals. Get the latest news and insights straight to your inbox. Free.
Strong core price and resiliency in the wake of Hurricane Ian in Florida have contributed to a robust Q3 2022 for WM, the company reported. Core price for the current year quarter was 8.2 percent, up from 4.6 percent in Q3 2021. Jim Fish, WM CEO and president, applauded the company's workforce in driving its collection and disposal business.
October 26, 2022
Strong core price and resiliency in the wake of Hurricane Ian in Florida have contributed to a robust Q3 2022 for WM, the company reported.
Core price for the current year quarter was 8.2 percent, up from 4.6 percent in Q3 2021. Jim Fish, WM CEO and president, applauded the company's workforce in driving its collection and disposal business.
"Organic revenue growth, diligent management of controllable costs, and proactive steps to automate the business translated into an 11 percent increase in adjusted operating EBITDA," he announced.
Fish continued: "I am proud of the dedication of our entire team, particularly our team members in Florida who are rising to the challenges from Hurricane Ian to support cleanup efforts for affected communities. The team continues to maintain focus on meeting the service needs of our customers and executing on pricing and cost management plans, and they do all of this while advancing our long-term strategic priorities.”
Strategic decisions have allowed WM to overcome inflationary pressures, labor shortages and weather-related disruptions. Updated guidance enacted in Q2 2022 took into account recent data and recycling commodity prices which was "an important contributor" to WM's Q3 operating income.
Adjustments to overall cost structure, including amplifying automation and a focus on the labor market and "high-efficient job assessment methods" signficiently improved employee turnover, according to COO John Morris.
Operating EBITDA in WM's collection and disposal sector reached $1.59 billion in Q3 2022, up $174 million from Q3 2021. Operating EBITDA was 31.8 percent for the quarter as a percentage of revenue, up from 31.2 percent YOY.
CFO Davina Rankin reported that, "operating EBITDA margins have also benefited 50 basis points from the passage of the Inflation Reduction Act that restored alternative fuel tax credit through 2024."
Collection and disposal yield nearly doubled from 2021, reaching 7.1 percent in Q3 2022, up from 3.6 percent year over year (YOY).
Citing the recent release of its 2021 Sustainability Report, WM reported a significant increase in capital expenditures for sustainability growth. Investment in these measures reached $210 million in Q3 2022, compared to just $16 million in the prior year's quarter.
Overall capital expenditures to support WM were $547 million in Q3 2022, up from $448 million in Q3 2021.
"The year-over-year decline in free cash flow was primarily driven by the planned increase in sustainability growth investments and accelerated capital spending to support the business," the company stated.
The company further stated that volumes improved 1 percent in Q3 2022, down from 3.2 percent in Q3 2021. Collection and disposal volumes grew 1.4 percent, down from 3.4 percent YOY.
You May Also Like