Archive for April, 2009

Waste Management Announces First Quarter 2009 Earnings

HOUSTON – April 29, 2009 – Waste Management, Inc. (NYSE: WMI) today announced financial results for the quarter ended March 31, 2009. Net income(a) for the quarter was $155 million, or $0.31 per diluted share, compared with $241 million, or $0.48 per diluted share, for the first quarter of 2008. Revenues for the first quarter of 2009 were $2.81 billion compared with $3.27 billion for the same 2008 period. Of the $456 million decrease in revenue, only $132 million, or 4.7% of revenue, comes from operational impacts to the solid waste collection and disposal business. The balance of the decline is due to commodity impacts related to recycling materials, fuel and energy, and non-operational items including foreign currency translation and one fewer work day during the first quarter of 2009.


The Company noted certain items that impacted results in the 2009 and 2008 first quarters. Excluding these items, net income would have been $0.42 per diluted share in the first quarter of 2009 compared with $0.47 per diluted share in the first quarter of 2008.(b)


Results in the first quarter of 2009 included a decrease of $0.11 per diluted share from:


• A $23 million reduction in net income due to charges related to the restructuring announced in February 2009; and


• A $30 million reduction in net income related to the abandonment of SAP software.


Results in the first quarter of 2008 included a net $0.01 per diluted share benefit due to $6 million of net income from income tax audit settlements.


David P. Steiner, Chief Executive Officer of Waste Management, commented, “I am pleased with the way we are performing during this challenging economic environment. We increased our income from operations margin on an as-adjusted basis by 70 basis points compared to the prior year period, and we generated strong cash flow.(b) The majority of our business relates to commercial and residential sources and is generally recession resistant. Internal revenue growth from volume in our commercial and residential collection lines in the first quarter was consistent with our experience during 2008, at about negative 4% each. The fourth quarter volume declines that we saw in our more economically sensitive industrial collection, landfill, transfer & recycling businesses continued into 2009. We expect volumes in these economically sensitive lines of business to remain soft in 2009 and, as a result, we continue to focus on cost and pricing discipline and driving continued efficiency throughout our organization.


“As we anticipated, we saw a negative impact of $0.09 per diluted share in the first quarter of 2009, compared with the prior year period, as a result of the deterioration of the recycling commodities markets. Conditions have stabilized and prices have been trending upward from the lows reached in January. We continue to expect a negative year-over-year impact from recycling operations of $0.15 to $0.20 per diluted share for the full year 2009, most of which is expected to be in the first half of the year.”


Steiner concluded, “At the beginning of February we restructured the Company to prepare ourselves for a slower economy, and these actions succeeded, saving us approximately $10 million per month in February and March. Consequently, we expect to exceed $120 million in annualized savings from our restructuring. The recession resistant qualities and strong cash flows of our solid waste business, combined with the proactive steps we are taking to strengthen our pricing programs and reduce our costs, give us confidence that we will continue to generate strong cash returns for our shareholders and emerge from this economic downturn even stronger than before. We remain confident that we will meet the 2009 goals that we announced earlier in the year.”



Key Highlights for the First Quarter 2009


• Internal revenue growth from yield on our collection and disposal business was 3.1% when calculated using revenue only from these lines of business.

• Internal revenue growth from volume was negative 8.1%. Adjusting for the effect of one less work day during the first quarter of 2009 compared to the prior year quarter, internal revenue growth from volume was negative 7.4%.

• Operating expenses declined by $367 million, or approximately 17.5%, to $1.73 billion in the first quarter of 2009. As a percentage of revenue, first quarter 2009 operating expenses decreased to 61.4%, which is a 270 basis point improvement compared with the same quarter in 2008, and is a strong performance given the revenue decline.

• Cost savings totaling approximately $20 million were realized for the months of February and March related to the restructuring we announced in February and annualized savings are expected to exceed $120 million. A charge of $38 million was incurred for this restructuring and up to $15 million of additional charges are expected to be incurred in the second and third quarters of 2009.

• A $5 million benefit to net income resulted from the accounting impact of an increase in the 10-year risk free interest rate, which is used to calculate the present value of our remediation liabilities.

• Net cash provided by operating activities was $519 million in the quarter.

• Capital expenditures were $325 million in the quarter, a $112 million increase from the prior year period. This is primarily the result of paying in 2009 expenditures incurred in 2008. We still expect full year capital expenditures to be in the range of $1.1 billion to $1.2 billion.

• $143 million was returned to shareholders through dividend payments in the quarter.

• The effective tax rate in the quarter was approximately 37.2%, which reflects the impact of the implementation of an accounting change.

Republic Services Honored by CSX for “Green” Shipping Practices

PHOENIX-April 28, 2009 – Republic Services (NYSE:RSG) today announced that it received CSX Transportation’s (CSXT) first-ever Environmental Award. The award was conferred upon the company at the CSX Environmental Awards dinner to be held in Jacksonville, Florida on April 23.


CSXT is recognizing its freight railroad customers whose shipping practices help to significantly reduce carbon emissions. In 2008, Republic reduced carbon emissions by 38,952,000 tons by shipping refuse on CSXT freight rail. In addition, by choosing to ship via rail, the company conserves fossil fuels and helps alleviate congestion on the roads.


“Environmental responsibility is our business and we’re honored to be recognized for what we do,” said Republic CEO Jim O’Connor. “As stewards of the environment, we ensure that our operations are conducted consistent with environmental best practices and that the quality of the environment is a critical factor in our decision-making.”


Republic is one of 19 CSXT customers who, together in 2008 avoided over 1.2 million tons of carbon emissions by shipping with CSXT versus the highway alternative. These customers are being recognized because they either they led their industry in 2008 using CSXT to reduce their freight emissions or showed the greatest improvement in emissions efficiency in 2008 compared to 2007.


“CSXT is pleased to honor Republic Services with this award,” said Clarence W. Gooden, executive vice president - sales and marketing and chief commercial officer, CSX. “Shipping via freight rail is the most environmentally-friendly mode of surface transportation; one train is as efficient as 280 trucks, and can haul a ton of freight more than 436 miles on a single gallon of fuel.”


Republic Services, Inc. has been building on success since its inception in 1998, becoming an industry-leading provider of waste and environmental services. The company provides trash collection services to commercial, industrial, municipal and residential customers in 40 states and Puerto Rico through its 400 collection companies. Republic Services owns or operates 242 transfer stations, 213 solid waste landfills and 78 recycling facilities. The company is headquartered in Phoenix, Arizona and has 34,000 employees. For more information, visit the Republic Services web site at www.republicservices.com.

On Earth Day, Solid Waste Industry Reaffirms Commitment to Environmental Innovation

FOR IMMEDIATE RELEASE

April 21, 2009

Contact: Thom Metzger, 202-364-3751


(Washington, DC) – As America celebrates the 39th annual Earth Day, the nation’s solid waste industry says it plans to continue investing hundreds of millions of dollars over the next decade to reduce greenhouse gas emissions and air pollutants, create additional renewable sources of energy to reduce America’s dependence on fossil fuels, and continue expanding the amount of recyclables that it processes.


“The solid waste industry has long moved beyond simply collecting trash. We are leaders in responding to the most pressing environmental concerns of the day, including addressing climate change and developing new sources of renewable energy,” said Bruce Parker, president and CEO of the National Solid Wastes Management Association (NSWMA), which represents the private sector solid waste industry in the United States.


“Today, just about every waste collector is examining its fleet of trucks to conserve energy. That includes working with manufacturers to develop more fuel efficient, cleaner-burning vehicles powered with alternative fuels and using hybrid engines,” said Parker. Hybrid technology is particularly promising for garbage trucks because of their stop-and-go nature.


“The industry has for years invested in trucks fueled by liquefied natural gas, ultra-low sulfur fuel and other low-emission fuels. Now, many operators are looking to alternative fuels like biodiesel and even methane gas from landfills to run their trucks,” said Parker. Both alternative fuel and hybrid trucks have been used in many cities, including San Diego, San Francisco, Seattle, Fort Worth and Denver.


Waste companies are also using routing software and GPS systems to make routes more efficient, regularly checking tire pressure, and being vigilant about routine maintenance in order to make fleets more efficient than ever before, said Parker.


“With more than 130,000 total trucks collecting waste and recyclables in U.S. cities, these efforts combined will significantly reduce greenhouse emissions and improve air quality,” he noted.


In addition to reducing the impact of its fleet, waste management companies continue to pioneer technologies that turn trash into sources of clean, renewable energy. The industry currently operates 470 landfill-gas-to-energy projects, providing electricity and heat for corporate and government users in 44 states. The U.S. Environmental Protection Agency has identified another 520 landfills as potential candidates for similar energy projects.


“Landfill-gas-to-energy projects address global warming by capturing methane, which is a greenhouse gas,” Parker noted.


The EPA estimates that using methane as renewable, “green” energy brings environmental and energy benefits equivalent to eliminating the CO2 emissions of 195 million barrels of oil a year. The Nobel Prize-winning Intergovernmental Panel on Climate Change (IPCC) has noted that landfill-gas recovery directly reduces greenhouse gas emissions.


Recycling and composting offer another greenhouse-reduction success story. The industry recycled or composted slightly more than one third of all municipal solid wastes in 2007, conserving precious resources, protecting air and water from potential pollution and leading to a 2.5 percent reduction in America’s total greenhouse gas emissions


“The solid waste industry is proud of its environmental achievements, but we’re not sitting on our laurels. Independent research determined that between 1974 and 1997, greenhouse gas emissions from solid waste and recycling declined by 78 percent, even while waste generation increased by 70 percent. Our collective efforts have made a difference, and we continue to raise the bar,” said Parker.


###


NSWMA – a sub-association of the Environmental Industry Associations – represents for-profit companies in North America that provide solid, hazardous and medical waste collection, recycling and disposal services, and companies that provide professional and consulting services to the waste services industry. For more information about how America’s solid waste management professionals are serving as environmental health and safety stewards, protecting our environment and serving our communities, please visit http://www.everydayenvironmentalists.org/environmentalists.

Environmental Industry Associations Honors Rumpkes with Life Time Achievement Award

FOR IMMEDIATE RELEASE


Contacts: Amanda Pratt, Rumpke Consolidated Companies, Inc. 513-741-2637; Bruce Parker, EIA, 202-364-3720


Environmental Industry Associations Honors Rumpkes with Life Time Achievement Award


WASHINGTON, D.C. — On Tuesday, June 9, William J. Rumpke Sr. and his cousin and business partner Thomas B. Rumpke (posthumously) will be inducted into the Environmental Industry Associations’ (EIA) Hall of Fame.


EIA is the nonprofit trade association that represents for-profit companies in the waste service and equipment industry throughout North America. The

EIA Hall of Fame is for industry leaders who over the course of more than 20 years have made significant contributions to the industry and their community.


William (Bill) Rumpke Sr. is the president, chief executive officer, and chairman of the board at Rumpke Consolidated Companies, a company his father started in 1932. Thomas (Tom) Rumpke was an owner, co-president, and chief executive officer of the company until his death in 2004. Before becoming a waste services company, the family business was originally a hog farm where Bill and Tom at a young age helped collect garbage to feed the family’s hogs. In 1965, Bill and Tom partnered to create Rumpke Container Service. About 15 years later with the creation of the U.S. Environmental Protection Agency, they formed the corporation’s environmental affairs and compliance department, recognizing the need to further point their business toward long-term environmental sustainability.


In the 1970s, the company expanded to include service markets in Indiana and Kentucky and in the late 1980s; the Rumpkes developed their own hydraulic systems (Rumpke Hydraulics & Machining), container shop (Rumpke Industrial Equipment Service Center), and then purchased a recycling company, Pickaway County Community Action Recycling, which later became Rumpke Recycling in 1989. Following more than 200 acquisitions, Rumpke Consolidated’s revenue exceeded $270 million annually. Today, the company’s revenue is $376 million and the firm is one of the largest privately-owned waste and recycling hauling companies in the United States with 2,300 employees, 1,700 trucks, 8 landfills, 7 recycling centers, and 20 transfer stations.


In addition, in 1984, the Rumpkes partnered with Getty’s Synthetic Fuel (now Montauk Energy Capital) to collect methane gas, a clean renewable source of alternative energy, from the company’s largest landfill in Ohio. Thirty-three thousand homes are heated every day with this renewable fuel, and the company is also investigating technology to fuel their collection fleets with methane if feasible, which helps to reduce our dependence on foreign oil.


At the same time the company was expanding its waste collection and disposal services, Bill and Tom formed Rumpke Amusements and built a ballpark in Cincinnati, called Rumpke Park, which today still serves the local community for softball and youth baseball.


Over the years, the Rumpkes have funded the local boy scouts, built a new weight room for a Cincinnati high school, and regularly made donations to schools, hospitals, and other local events, a practice that continues at the company.


“People pick up on a company that cares and Tom and I wanted them to know that caring is what our company is all about,” said Bill Rumpke Sr. “I’m 69 years old, but still enjoy coming to work.”


Bill’s and Tom’s accomplishments have been recognized. In 1999, they received an Entrepreneur of the Year award from Ernst & Young. They have received annual recognition from Keep Cincinnati Beautiful and Great American Clean-Up for their commitment to local environmental clean-ups.


The University of Cincinnati Goering Center awarded them with a 2004 Tri-State Family Business of the Year Award. Bill has continued the company’s community spirit winning the 2005 Cincinnati Better Business Bureau Torch Award in Marketplace Ethics and a 2007 Dayton, Ohio Better Business Bureau Eclipse Award in Business Ethics as well as a Volunteers of America Ohio Valley Award. The company’s largest landfill was recognized with a 2007 Landfill Excellence in Operations Award.


According to Bill and Tom’s sons some of the company’s success is a result of a great love for their work and the employees who form the Rumpke organization. “I gain more respect for my dad each and everyday. He always leads by example. He shares the care and consideration he shows his children with his team of employees. His integrity and commitment to doing the right thing, as well as his drive to strategically develop the Rumpke organization, is a testament to his strength and courage. I admire and cherish the values he has instilled in me and the overall Rumpke organization,” said Bill’s son Bill Rumpke Jr., Chief Operating Officer at Rumpke.


“My father loved working at Rumpke and talking with the employees; whether it was a driver, landfill operator or one of the managers. He considered every employee part of the Rumpke family, he will always live in the heart of Rumpke,” said Todd Rumpke, Tom’s son and regional vice president of Rumpke’s Southeast Market.


“We are honored to recognize Bill and Tom for their life-time of dedicated service to the waste industry and the communities they serve,” said Bruce Parker, President and CEO, Environmental Industry Associations. “Their dedication and positive achievements in professional and community initiatives has made Bill and Tom a powerful example of leadership in the waste and recycling industry. Remarkably, they are the second generation of Rumpkes inducted into the EIA Hall of Fame, as their fathers received this honor in 2000.


The awards ceremony will take place on Tuesday, June 9 in Las Vegas, Nevada, as part of the waste industry’s national trade show, WasteExpo 2009.

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Stay up to date on the latest waste industry news. Select representatives post company press releases several times a day. Check back often to get the latest information on products, personnel moves, and mergers and acquisitions.

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