Given the strength of the Waste Management’s third quarter, which demonstrated the resilience of the business model and reducing the cost to serve, the company expects to exceed its 2020 adjusted operating EBITDA margin guidance of 28.0 percent to 28.5 percent and generate free cash flow in excess of $2 billion.
Revenue
In the third quarter of 2020, revenue declined $99 million in the company’s collection and disposal business compared to the third quarter of 2019, driven by $192 million in volume declines partially offset by $93 million of growth from yield.
Core price for the third quarter of 2020 was 3.2 percent compared to 4.0 percent in the third quarter of 2019 and 1.3 percent in the second quarter of 2020.
Collection and disposal yield was 2.6 percent in both the third quarter of 2020 and the third quarter of 2019 compared to 1.6 percent in the second quarter 2020.
Cost Management
Operating expenses as a percentage of revenue improved 110 basis points to 60.4 percent when compared to the third quarter of 2019.
Profitability
Total company operating EBITDA was $1.10 billion, or 28.5 percent of revenue, for the third quarter of 2020. On an adjusted basis, total Company operating EBITDA was $1.14 billion, or 29.5 percent of revenue, for the third quarter of 2020 compared to adjusted operating EBITDA of $1.14 billion and 28.8 percent of revenue for the same period in 2019.
Published in the December 2020 Edition
