At this time all participants are in a earnings on waste recycling on the Internet mode. Ed Egl, Director of Investor Relations. Sir, please go ahead. Good morning everyone and thank you for joining us for our fourth quarter earnings conference call.
You'll hear prepared comments from each of them today. Jim will cover high-level financials and provide a strategic update, John will cover an operating overview and Devina will cover the details of the financials.
Before we get started, please note that we have filed a Form 8-K this morning that includes the earnings press release and is available on our website at www. The Form 8-K, the press release and the schedules of the press release include important information.
During the call you will hear forward-looking statements which are based on current expectations, projections or opinions about future periods. We will also be providing our outlook for This outlook does not include the impact of our planned acquisition of Advanced Disposal Services Incorporated, which we may also refer to ADS. Once we complete this acquisition, we plan to provide an updated outlook.
All such statements are subject to risks and uncertainties that could cause actual results to differ materially. Some of these risks and uncertainties are discussed in today's press release and in our filings with the SEC including our most recent Form K.
Jim and John will discuss our results in the areas of yield and volume which, unless otherwise stated, are more specifically references to internal revenue growth or IRG from yield or volume. In addition, beginning in the fourth quarter of we updated our calculation of core price.
With advancements in technology we collect additional transactional customer level data, which provides us improved clarity of the impact of our pricing activities. While this does not change the year-over-year core price performance result, the new measure reflects a more precise calculation in the evaluation of our revenue change.
Please refer to the press release tables, where we have provided two years of quarterly core price data using the new methodology. During the call, Jim and Devina will discuss our earnings per diluted share, which they may refer to as EPS or earnings per earnings on waste recycling on the Internet and they will also address operating EBITDA, which is income from operations before depreciation and amortization.
Any comparisons unless otherwise stated will be with the fourth quarter of In prior quarters the adjustment for ADS included the reduction of common stock repurchases from planned levels. We are no longer adjusting for this.
These adjusted measures, in addition to free cash flow, are non-GAAP measures. Please refer to the earnings press release and tables which can be found on the Company's website at www.
Prepared Remarks: Operator Ladies and gentlemen, thank you for standing by and welcome to the Waste Management third-quarter earnings release conference call.
To hear a replay of the call over the Internet access the Waste Management website at www. To hear a telephonic replay of the call, dial and enter reservation code Time sensitive information provided during today's call, which is occurring on February 13, may no longer be accurate at the time of the replay. Any redistribution, retransmission or rebroadcast of this call in any form without the expressed written consent of Waste Management is prohibited.
James C. We're proud of how Waste Management performed in We continued our focus on optimizing our traditional solid waste business, developing our people and investing in technology to better serve our customers and we're confident these are the right focus points to deliver long-term growth for how to make a newbie on the Internet Company.
The results are evident in our full-year top line growth, which was 3. Landfill pricing was one of the bright spots in and is also a great example of what the Waste Management organization can achieve when we have a shared focus. We expect to continue to drive improved MSW pricing for the foreseeable future, as our price increases keep pace with the increasing cost at our landfills.
But we won't just focus on MSW pricing, we're pricing all our lines of business to ensure that we generate appropriate returns on invested capital, including our recycling and residential lines of business.
Waste Management (WM) Q3 Earnings Call Transcript | The Motley Fool
John will share more about our plans for those two areas. We expect to achieve this growth from continued strong performance in our collection and disposal business through a combination of price, volume and cost controls. Last quarter, I spoke of lack of visibility in our special waste pipeline as we were seeing hesitation from some industrial customers in committing to event work.
I'm pleased to report that we're seeing more companies commit to event work so far in the first quarter and concerns of a recession around the industrial economy have mostly abated. We've been awarded a large coal combustion residual remediation project starting this spring. With our well-positioned asset network and expertise, we've developed a strong reputation in managing all aspects of these clean closure projects.
Electronics industry is the world's largest and fastest growing industry. In the industrialized world, the combination of rapid product obsolescence and discarded electronics is now the fastest growing waste stream. Electronic waste or e-waste is the waste generated from type of electric and electronic equipment that lose their value to users or no longer satisfy their original purpose.
We expect that our differentiated service offerings will result in additional jobs throughout this year. Turning to free cash flow, we've said operating EBITDA is the best reflection of the health of our business and provides the foundation for generating free cash flow. Devina will discuss capital allocation in the year ahead, but suffice it to say that we expect to continue to reward our shareholders in by allocating a substantial portion of our free cash flow back to shareholders.
We are expected -- we are excited as we near the close of this transaction and we have great confidence in the potential of the combined organization.
Waste Management Inc (WM) Q4 Earnings Call Transcript | The Motley Fool
We anticipate that we will obtain antitrust regulatory approval by the end of March and close soon thereafter. We've received a high level of interest from other companies in acquiring any potential businesses we might be required to divest and we expect to complete the sale of any required divestitures shortly after the closure of our purchase of ADS.
Our integration team has been working hard preparing for this close and the team is positioned to move quickly to integrate ADS operations and to achieve our targeted synergies.
Overall, the lead story at Waste Management and within the industry as a whole is one of consistency and predictability of earnings and cash flows, resulting in excellent returns to shareholders.
How startups like Attero Recycling, Karma Recycling are making money out of garbage
Devina will go through our guidance in detail, but we expect that consistency to earnings on waste recycling on the Internet into where we see a highly efficient customer and employee-centric core engine driving a continuation of what we've seen for the past three to four years.
The amazing part about our results is that we have had some challenges in parts of our business like recycling and renewable energy sales yet the core business continues to churn out earnings and cash at a strong pace. This industry and this company in particular have been a model of strong predictable results.
Comment Synopsis The kind of garbage India generates too is changing; plastic waste and ewaste are growing rapidly and state agencies lack the capacity and to deal with it. Private enterprise hopes to step in where public services fall short. For example Daily Dump in Bengaluru, started in with 30 customers in Bengaluru, is now in 17 cities with its composting solutions. In a few months, this massive site may be out of space — as early as Marchaccording to civic authorities. India is facing a garbage crisis like never before; across the country, cities are drowning in detritus.
With a very strong consumer segment of the economy and what appears to be a recovering industrial segment so far in the year, we are confident that this rock solid trend will continue. Lastly, I want to thank all of our hard working team members who continue to make Waste Management both a great place to work and a fantastic long-term investment for our shareholders.
Earnings, jobs and innovation: the role of recycling in a green economy
With that, I'll turn the call over to John and Devina to discuss our results and our guidance in more detail. John J. We had a strong finish to and are pleased with our full-year performance. Our disciplined pricing programs are delivering great results, which is best demonstrated by our MSW yield of 3. We will continue to price our well-positioned landfills to generate an appropriate return on invested capital in a rising cost environment. More broadly in the collection and disposal business we achieved yield of 2.
As we look ahead toyou will see our continued focus on pricing to overcome cost headwinds and to keep generating appropriate returns on invested capital. What is impressive about these pricing results is that we were able to achieve this without compromising our volume results.
We achieved 2. However, as we expected some but not all, volume growth moderated in the fourth quarter, both as a result of difficult comparisons to the fourth quarter of and the timing of special waste jobs.
The good news in is shaping up to be another solid year for volume. As Jim mentioned, coal combustion residuals should be a benefit for us in as we've ways to make money with options been awarded a job to start in April and there are additional jobs in the pipeline. The strong consumer economy and special waste pipeline combined with the positive trend in service increases exceeding service decreases gives us confidence that we'll have another good volume earnings on waste recycling on the Internet in We plan to build upon our success in continuing to execute on our focused differentiation and continuous improvement strategies in the year ahead.
The team is focused on opportunities to continue, improve and optimize our collection and disposal businesses. We plan to improve ROIC in our residential line of business and improve our overall operating costs with M focused on labor, technology helping you improve routing and maintenance service delivery optimization focused on repair and maintenance costs. In our residential line of business, we have several initiatives under way, aimed at improving profitability.
This begins with the way we bid on municipal contracts. Waste Management has led the industry on return on invested capital and we're bringing an even greater attention to this metric in We're taking a hard look at each residential contract as it comes up for renewal and making sure that our bid prices and terms of service are keeping pace with cost inflation over time and changing recycling dynamics.
We're also leveraging the data we continue to aggregate via our onboard technology to improve routing and the efficiency of our drivers, which results in improved service and reduced costs.
We expect to see similar results in the residential business that we achieved in the commercial line of business with these tools. More broadly in the collection business, we're improving efficiency and capturing savings through several efforts. The other effort that will benefit our collection line of business is our maintenance service delivery optimization or MSDO.
We expect to continue to lower maintenance costs as we did in the second half of This leads to improved operational performance by bringing increased standardization to our fleet as well as improved maintenance processes. These are just a few examples of the great work under way to further optimize our collection operations with the help of technology.