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Waste Management (WM), Houston, announced its financial results for the third quarter of the year ended September 30th. Sales increased in the third quarter compared to the same period last year. The company had revenue of $ 4,665 million in the third quarter compared to $ 3,861 million in the third quarter of 2020.

The company says the results are on track to meet its full-year financial targets despite accelerating cost inflation.

According to Waste Management, revenue for its collection and disposal services increased $ 260 million, driven by $ 137 million in volume increases and $ 123 million in revenue growth. Acquisitions, net of divestments, contributed $ 295 million in revenue, primarily from the acquisition of Advanced Disposal in Ponte Vedra Beach, Florida. The company acquired Advanced Disposal in October 2020.

WM operating income before interest, taxes, depreciation and amortization (EBITDA), adjusted on the same basis as the company’s operating EBITDA, was $ 1.40 billion, or 31.1 percent of sales, for the third quarter of the year, compared to $ 1.27 billion. or 33.1 percent of sales for the third quarter of 2020.

According to WM, operating EBITDA in its recycling business improved by 53 million material recovery systems compared to the third quarter of 2020, which offer a less labor-intensive operating cost model.

The company’s EBITDA in the renewable energy business improved $ 22 million compared to the third quarter of 2020, primarily due to price increases.

“Strong organic growth and continued progress in integrating the Advanced Disposal business drove our robust revenue growth in the third quarter, increasing Adjusted Operating EBITDA by more than 14 percent and increasing net cash flow from operations by more than 15 percent. Activities, ”said Jim Fish, President and CEO of WM. “Despite accelerating cost inflation, our solid results put us on the right track to meet our financial targets for the full year.”

Operating expenses as a percentage of sales were 62.3 percent in the third quarter of the year versus 60.4 percent in the third quarter of 2020. On an adjusted basis, operating expenses were 62.2 percent of sales in the third quarter of the year versus 60.4 percent in the third Quarter 2020. WM says the increase in the operating cost margin in the current quarter is due to accelerating labor and other inflationary cost pressures, as well as the impact of higher raw material prices for recyclables.

For the third quarter of the year, net cash from operating activities was $ 1.18 billion compared to $ 1.03 billion for the third quarter of 2020. The improvement in net cash from operating activities was primarily driven by an increase in operating EBITDA.

According to WM, the company’s sales growth this year is expected to be between 17 and 17.5 percent. The combined internal revenue growth of revenue and volume in the collection and disposal business is expected to be around 6.5 percent, driven by the company’s disciplined pricing programs and good prospects for further volume recovery. Adjusted operating EBITDA is projected to be between $ 5 billion and $ 5.1 billion this year. Free cash flow is expected to be between $ 2.5 billion and $ 2.6 billion this year.

“Our people do a great job and provide vital services to our customers and communities,” says Fish. “We are proud to highlight many of the efforts that have helped us improve our sustainability goals in our Sustainability Report 2021, published earlier this month.”

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