Waste Management has reported a 7.22 percent fall in profit for the quarter ended Sep. 30, 2014. The company has earned $270 million, or $0.58 a share in the quarter, compared with $291 million, or $0.62 a share for the same period last year.
Revenue during the quarter went down marginally by 0.52 percent to $3,602 million from $3,621 million in the previous year period. Gross margin for the quarter expanded 38 basis points over the previous year period to 36.17 percent. Total expenses were 84.84 percent of quarterly revenues, up from 84.07 percent for the same period last year. That has resulted in a contraction of 78 basis points in operating margin to 15.16 percent.
Operating income for the quarter was $546 million, compared with $577 million in the previous year period.
Cash Flow
Waste Management has generated cash of $1,811 million from operating activities during the nine month period, down 2.53 percent or $47 million, when compared with the last year period.
The company has spent $576 million cash to meet investing activities during the nine month period as against cash outgo of $1,432 million in the last year period. It has incurred net capital expenditure of $781 million on net basis during the nine month period, down 5.22 percent or $43 million from year ago period.
The company has spent $1,107 million cash to carry out financing activities during the nine month period as against cash outgo of $459 million in the last year period. It has borrowed net of $28 million through debt. It has spent net of $530 million on repurchase of common stocks.
Cash and cash equivalents stood at $183 million as on Sep. 30, 2014, up 16.56 percent or $26 million from $157 million on Sep. 30, 2013.
Working Capital
Working capital of Waste Management has turned positive to $327 million on Sep. 30, 2014 from negative $445 million on Sep. 30, 2013. Current ratio was at 1.09 as on Sep. 30, 2014, up from 0.84 on Sep. 30, 2013.
Days sales outstanding went down to 44 days for the quarter compared with 47 days for the same period last year.
At the same time, days payable outstanding was almost stable at 28 days for the quarter, when compared with the previous year period.
Debt Level
Waste Management has witnessed an increase in total debt over the last one year. It stood at $10,164 million as on Sep. 30, 2014, up 1.04 percent or $105 million from $10,059 million on Sep. 30, 2013.
Total debt was 45.76 percent of total assets as on Sep. 30, 2014, compared with 42.60 percent on Sep. 30, 2013. Debt to equity ratio was at 1.79 as on Sep. 30, 2014, up from 1.43 as on Sep. 30, 2013.
