Thank you, Tawanda. So at the end of Q4, we were at $47. And we talked a lot about drivers, it's our biggest population. Waste Management ( WM 2.73%) Q1 2023 Earnings Call. One excellent example of this is the expansion of our customer self-service capabilities where we've reduced our call center department costs in the first quarter by more than 20% compared to last year, while at the same time maintaining or improving our Net Promoter Scores in the commercial and industrial lines of business. Instead, they must be recycled. The concept of EPR recycling certificate, refurbishing For more information regarding yard waste disposal, please visit our Yard Waste Disposal webpage. And when China has closed down with their COVID policy, that hurt worldwide demand. RIN pricing is probably a little bit against us right now. How much more momentum is there, I would have presumed a chunk of that is CPI pricing rolling. WM Curbside Refuse Container Sizes and Rates Recyclables, yard waste and any large or special pickup items must still be placed curbside. So how do we take advantage of that and the way we take advantage of it is by bringing technology to squeeze 5%, 10% maybe even 15% optimization out. WM earnings call for the period ending March 31, 2023. Our interactive Paris metro map is designed to make your journeys easier; it is available online and downloadable in PDF format. Hi, team. It should be a net zero. But that's because we've needed to be intentional about keeping our vehicles and maintaining them so that we meet all of our service needs for our customers. Any comparisons, unless otherwise stated, will be with the first quarter of 2022. Like any change in conversations that you're having with customers? Recycle Real Christmas Trees Throughout Central Virginia, City of Richmond E-Cycling, Paper Shredding and Household Hazardous Waste Collection, Chesterfield County Shred and e-Cycling Event. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. for verification or audit as and when required. So far in 2023, the WM team continues to deliver strong performance. widened and simplified. We expected our first quarter to be the hardest comp on a year-over-year basis from commodity prices, and so we think most of that impact starts to abate beginning in Q2. And then on the recycling part of the business, the Natura business is in early stages and we're making some investments there, too. But I've got a lot of questions this morning. The Florida Department of Environmental Protection recognizes businesses, institutions, schools, public organizations and citizens who recycle over 40 percentof their waste. The following companies have indicated that they will provide curbside recycling, to include provision of containers for their service: Each hauler will provide instructions regarding existing containers. So let me take that in pieces. Households that recycle with CVWMA in Henrico, Hanover and Goochland counties will automatically receive new 96-gallon recycling carts in the spring. Recyclable materials are collected every other week. Click on the map to enlarge. skip to main . about your specific circumstances. Yeah. And that's when you look at the pricing and the yield results in residential, I think for the quarter, we were up $53 million in revenue. During the call, Jim, John, and Devina will discuss operating EBITDA, which is income from operations before depreciation and amortization. Super helpful as usual. Thanks for the question. All customers must use approved carts provided by Waste Management. Carton Recycling Go Green Communities. Voter registration, polling locations, absentee voting, & election information, Paying your bills online quick and easily, Receive email or text notifications and emergency alerts, Find current job openings and submit your application or resume online, Simple and quick access to read and download permits online. will be issued a refurbishing certificate for a particular quantity e-waste is, we need to constantly reimagine, revaluate, and ), Construction wastes (limited to four, 32-gallon containers, each weighing 40 lbs. So I think you're right about the fact that there's a whole bunch of pieces in play here. awareness about e-waste management, and file annual and quarterly Hey, Jim, John. How do I take advantage of that? Facebook Bulky item pick up available 6 times per year. I have a suspicion maybe you will end up with two lefts and a right versus two rights and a left to get to the same outcome. And as John has talked about, in particular, labor and repair and maintenance are expected to benefit from the actions that we saw early signs of as we looked at February, March, but we expect to continue to gain momentum over the remainder of the year. of e-waste, electrical and electronic equipment ("EEE"), Your line is open. We talked a lot about the work we're doing to optimize our cost to serve. So we're looking at making sure that we're not just doing a diesel-based fuel surcharge, we're doing a blended surcharge. But would a state like California look at your RNG fleet differently than, say, a typical owner operator running a Class A truck just because you're producing on the front end as well when you're creating a circular economy? M-F 7 am - 5 pm. This will help in management policies. Yeah. Residents who supply the county with a physician's note may have rear door garbage and recycling service provided at no charge. Business and School Recycling. registered recyclers. Noah Kaye -- Oppenheimer and Company -- Analyst. WM offers waste & recycling services to residents in Moreno Valley, CA. So to Devina's point, there's a little pensiveness by the field, and we understand it's to send those trucks back, whether it's rentals or surplus assets. We expect our investments to continue to drive improvement in SG&A costs and put us on a path toward a permanently reduced SG&A cost structure. The trend has been good and it's what we anticipated. For missed pickups, service requests, container swaps, or other issues, contact Waste Management at 800-796-9696 or WM.com. I could say the same thing about MSW volume or a couple of the other things. Support. Our next question comes from the line of Tyler Brown with Raymond James. statistics indicates that India is the third largest generator of With the mass electrification of transportation, recycling of batteries is a growing concern in India as a significant part of discarded batteries eventually end up in garbage disposals. Development translates into exponential technological notified the E-Waste (Management) Rules, 2022 on 2nd November 2022 With profitability improving in each line of business and contract wins with healthy price increases, we're pleased to see our differentiated service and disciplined approach to yield benefits. Is the opportunity for that maybe near-term dilutive impact from M&A in a given period of time to maybe diminish over time because of this? Home |Residents |TrashPickup&Recycling. Waste Management requires all garbage and recycling to be placed at roadside for pickup by 5:30 a.m.on your regularly scheduled day. Producers are required to meet recycling targets up to 60% by And maybe taking that a step further. Our collective focus continues to be striking the right balance between maximizing customer lifetime value and increasing price to recover higher costs. The mill capacity that's coming online is helping with demand on the back end. Solid Waste Enclosures Guide and Design Considerations, Solid Waste How-To Guide for Residents in Sarasota County_ADAc, Items that do belong in your recycling containers, Items that do not belong in your recycling containers, Containers/items may be placed at the curb beginning at 5 p.m. the day, Empty containers should be brought in from the curb by 10 a.m.on the day, Otheritems that may be collected curbside are listed below. No. So that's clearly going in the right direction. By state law, yard waste - such as grass clippings, leaves and tree branches, may not be put in the trash. This call is being recorded and will be available 24 hours a day beginning approximately 1:00 PM Eastern Time today. For general questions about garbage and recycling in Sarasota County,call the Sarasota County Contact Center at 941-861-5000. Select your locality from the drop-down menu, then enter your address. Maybe you can talk to your sense of the mills inventory position on recycled fiber. We're also taking some important steps that we think are beneficial in terms of looking at the overall cost structure of the organization that is dependent upon the fact that we are at 75% CNG for fleet and delivery. I will now like to turn the call back to Jim Fish, president and CEO for closing remarks. Subcontractors, we're still seeing a little bit of lag there, and it's really more of third-party transporters. On the solid waste side, we took a really important step that's team member-focused and an investment in our frontline by making the MLK holiday across the entire organization. This article is a transcript of this conference call produced for The Motley Fool. Sarasota CountysProject Green Sweep (application)(below) program offers qualified Sarasota County businesses a responsible, cost effective method to properly dispose of small quantities of hazardous and regulated wastes that are banned from landfill disposal. So I would say we're probably -- we were probably 60% of the way there on that piece. So we are still sticking with our $70 and feel pretty confident in that. I want to frame these results and then talk about the efforts in place to optimize our cost to serve in 2023 and over the long-term. So we're getting traction even above that CPI number. The alternative fuel tax credit was a help of 30 basis points, and that's a help because of timing. I'll now turn the call over to Devina to discuss our financial results in further detail. So those are the things that give us confidence that the Q1 results of 40 basis points will exceed what you see for the remainder of the year. Click herefor a guide to composting at home. extended. Refurbisher's are under a duty to collect e-waste generated Sure. 8 a.m. to 5 p.m. (772) 546-7700. Good morning. And then on top of that, we'll have some added benefits from lapping some of the commodity price impacts I've talked about. Phone 877-466-4668. Can I ask just a follow-up on that? So we don't have any issue moving the material we're bringing in. It is not inexpensive to optimize that. Our leverage ratio at the end of the first quarter was two times, which is well within our target ratio of between 2.5 and three times. as per the revised Schedule I of 2022 So we're going to continue to get those assets in play as quick as we can and drive the benefit. The Village contracts with Waste Management for this service. I was trying to figure out a good way to say that. What's the temporal loss utilization look like? Our next question comes from the line of Toni Kaplan with Morgan Stanley. Ladies and gentlemen, I'm showing no further questions in the queue. So I think EPA is still trying to kind of work their way through PFAS. Once you have your container, simply follow the same guidelines as . All Rights Reserved. Sure. Mondaq Ltd 1994 - 2023. defer their EPR vis--vis corresponding quantity of e-waste year in which the extended life of the product is expired. Our fleet strategy is evidenced by what we've done from diesel -- gen 1 diesel, gen 2 to CNG/RNG that we have the flexibility within our fleet plan to be able to pivot without really impacting the business. Maybe just how did the value of the recycled commodities in 1Q compare to your expectations? The lids on both carts must be closed to ensure litter free service. We have consistently emphasized the importance of post collection pricing and in Q1, we delivered yield of 8.9% of our transfer stations, and 5.4% for landfill MSW, both increases from last year. Your line is open. View Recycling Schedule (PDF) What's Acceptable for Recycling. I think we benefited from -- we've talked a lot about our brokerage business being part of the recycling portfolio, and what that's always -- what that's added to us as a benefit is our ability to move the material. Thank you so much. The Board of Supervisors has waived the first half recycling fee for recycling services provided from Jan. 1 to June 30, 2023. collected, dismantled, and recycled in an environmentally sound I mean, that's sort of a good canary in the coal mine about business activity. So what you're seeing this year is that those are going to be recognized quarter-by-quarter. We're down about 29 in volume. as per Compulsory Registration Scheme of the Ministry of What's really important there, I think, in terms of thinking about what it means for the rest of the year is that, that impact isn't something that repeats itself. But maybe you could touch a little bit about if there's any change in your approach to acquisitions as you continue to kind of balance SG&A reduction as well as acquisitions. Your line is open. discarded as waste and the term 'bulk consumer' has been You will hear prepared comments from each of them today. We definitely see the lion's share of that contribution of EBITDA margin coming in the third and fourth quarters. Check for holidays that may affect your WM trash or recycling services within the next 7 days. And with our outlook for strong earnings growth over the remainder of the year in a healthy balance sheet we expect to continue to repurchase our shares fairly ratably over the remainder of the year. We expect the investments that we're making over the next several years to provide meaningful operating EBITDA and free cash flow growth with impressive returns. Now we tend to be kind of at the back end. laboratory instruments etc. Thank you. We don't expect that to continue over the remainder of the year. guide to the subject matter. Twitter I think it does, Ken, I think it puts us in a great position there. How quickly can we see that productivity impact into your results? Waste Management's Orchard Ridge Drop-Off Facility (W124N9355 Boundary Road) for Yard Waste, excess Recycling, and excess Garbage is open. Obviously, the banking crisis sort of doesn't impact your business as much as some of the other business services companies. I mean, when California is telling people with electric vehicles to not charge their vehicles last summer, and I don't know what the percentage of electric vehicles is in California, it's probably 5%, if that. Ed Egl -- Senior Director, Investor Relations. It's not all CPI as we've talked about. Are your RNG or CNG trucks considered essentially net zero? Integration costs and upfront dilutive margins of these acquisitions had about a 35 basis point impact in the quarter. That's right -- theythink these 10stocks are even better buys. By using our website you agree to our use of cookies as set out in our Privacy Policy. All other residents may also take advantage of rear door pick-up for a fee. I mean, listen, we've talked a lot about our CNG, RNG strategy and obviously really pleased with the way that's gone and with the outlook of that is, especially as we continue to bring on these R&D plans. The good news is, like we said, there's almost 500 trucks that are on the ground, not in service yet. It understands things like location of carts. Thanks for taking my question. Any additional garbage containers (not provided by Waste Management) or bags left for collection, will not be picked up and tagged. So it puts us in a really, really good position add to that -- that this MRF will be one of the new style MRF, so with a lot of automation in it. People are talking about hydrogen. Our interactive Paris metro map is designed to make your journeys easier; it is available online and downloadable in PDF format. Share this page on your favorite Social network, DPW/Police/Fire Facilities Replacement Feasibility, Blanche Ames Elementary School Construction Project (MSBA), Southeastern MA Regional 911 District (SEMRECC), Easton Shovel Town Cultural District Management Partners Team. Thank you. Invest better with The Motley Fool. Looking forward to seeing a lot of you next week in New Orleans. Join Over Half a Million Premium Members And Get More In-Depth Stock Guidance and Research, Copyright, Trademark and Patent Information. List of Materials Powered by Upcoming Events View All Events It also helps that China's open back up. OK. And then on the commodity side, the other pieces of your model are RINs in nat gas and electricity. But how do you see that playing out? Beginning July 1, 24-gallon bins and personal containers will no longer be collected curbside. Overall, you have an assumption all this would improve. When we talk about it probably four years ago, we're talking about something less than 1%. Net income, EPS, operating EBITDA, and margin and operating expense and margin results have been adjusted to enhance comparability by excluding certain items that management believes do not reflect our fundamental business performance or results of operation. AB 341 requires all businesses that generate 4 cubic yards or more of trash per week to arrange for recycling services. And we're starting to see truck orders fulfilled, which benefits every aspect of our cost structure because employee engagement is better, downtime on route is minimized, repair costs to reduce, and expensive rentals can be eliminated. It's a great question, Jerry. Michael Hoffman -- Stifel Financial Corp. -- Analyst. Yard Waste Permits were mailed to property owners in January. So those are the things that give us so much confidence that Q2 really will be outsized relative to a typical year. Good morning. Thank you for the question. And like I said, we're pleased with the traction that we're seeing in each of those businesses on the recycling side because that business is in a development phase. We expect dividends to total about $1.1 billion this year. With respect to driver retention and overall compensation in that area of your labor force, how do you expect that to trend, and particularly in the macroeconomic headwinds? City of Federal Way - Waste Management Northwest This website is your #1 resource for information MY WM APP Manage accounts and billing, request services, view pickup schedules Automated Virtual Assistant CHAT M-F 7 am - 7 pm Sat 8 am-12 pm EMAIL pnwrsservices@wm.com Phone 253-833-3333 M-F 7 am - 7 pm Sat 8 am - 5 pm But it is worth saying that we view this as a big opportunity for us and for all landfill companies once they've kind of finally decided exactly how this is going to be handled. Thank you. We're also seeing a pretty significant uptick in pricing for plastics, for aluminums and a little bit for OCC. Our next question comes from the line of Tony Bancroft with Gabelli. Kevin Chiang -- CIBC World Markets -- Analyst. ET. And so asset utilization, not necessarily where we like it to be. First-quarter cash flow from operations of $1.04 billion is in line with our plan and a strong result, particularly when you consider higher cash interest and incentive compensation payments. And one of our areas actually was scheduled to return some rental trucks which, as you can imagine, are done at a premium. . And in fact, we do see some of that coming out in Q2, but Q3 and Q4 is really where you start to see some strong results. Click here for more information. Beginning November 1, 2022, MassDEP is expanding its current waste disposal bans to include mattresses and box springs. To make the world smarter, happier, and richer. OK. And then just to settle the on temporal losses. Yeah. Hi. 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.wm.com. contain lead, mercury, and other hazardous substances beyond the On the dilutive impact from commodity businesses of 50 basis points, you had that right. Even as we invest in high-return sustainability growth projects within our business, we continue to demonstrate our commitment to all of our capital allocation priorities. In addition to the service intervals, though, as Jim mentioned in the commentary a few minutes ago, the other parts of that, that we're really paying close attention to is what the churn rate is doing and what the rollbacks are doing even as we continue to be aggressive on the pricing side. EPR mechanism under the 2016 Rules focused more on the producer's responsibility to collect back the e-waste introduced in the market and provided collection targets, whereas the EPR regime under 2022 Rules provides an annual e-waste recycling targets to the producers. You mentioned something -- I think you said 30 basis points from a fuel tax credit. Capital spending in the quarter totaled $660 million, with $504 million related to normal course capital to support our business and $156 million of spending on sustainability growth projects. Thanks for taking the questions. And because renewable energy and recycling both have commodity-based impacts, we thought looking at those on a combined basis made some sense. Your line is open. This year, we received about 470. But everything we're looking at still seems to be OK. So I think we're in a good spot there regardless of what the technologies. Any regular Friday collection delayed by a holiday will occur on Saturday. With that, Tawanda, let's open the line for questions. You're seeing us price it that way. This growth was led by core price of 7.4%, which exceeded both last year and our plan for the first quarter. Composting is relatively easy and takes less space than you think. Our next question comes from the line of Tobey Sommer with Truist. produces an appalling amount of e-waste and due to lack of Electronics and Information Technology and Standards of Bureau of But can you just expand -- and really nice to see the strong numbers, both in transfer stations and landfills. I wanted to just ask my follow-up on the sort of more recent, like April, late March trends. And I would guess that 90% of that 70% are on rear loaders. No, that makes a ton of sense. financial year including the e-retailer, will be considered as bulk Because I think there's some waiting issue there that people should appreciate given that 70% of your index is happening now and it's a number from last summer, not the end of the calendar year. Just wanted to get that confirmation. Yeah. On the solid waste side, when I was mentioning the MLK holiday, that was part of the 20 basis point margin headwind that we saw from the solid waste part of the business. It's, in our mind, it's a perfect place to put a new MRF. Please contact the CVWMA at 804-340-0900 to request free recycling stickers for containers you own. Yeah. And that's really, as Jim mentioned, what we're really focused on for the balance of the year. If a holiday falls on a Saturday or Sunday, there will be no delays. You said it better than I would. So we're confident that we're going to maintain that true pass-through model that we've had over the last many, many years. Thanks so much. product user documentation. When you combine these strategic positioning -- when you combine this strategic positioning with the essential nature of our service, our diverse customer base and our recurring revenue streams, it provides confidence in our ability to continue to reach our strong financial projections over the long term. OK. and now includes any person or entity who: irrespective of the selling technique used such as dealer, interpretation. But just given some of the stuff you've seen, not sure if you think that impacts your fleet strategy or maybe the need to accelerate some of the investments in electrification or other -- or some other type of propulsion system that gets you to some sort of GHG emission target based on the EPA's proposal here. They have to talk to our customers and make sure that they're comfortable with going to trash just being in one of those totters as opposed to everything sitting on the curve. Curbside garbage and recycling collection services are provided to residents in unincorporated parts of Sarasota County by Waste Management. Carton Recycling Program. Our operating EBITDA margin performance for the quarter was generally in line with our expectations. And so what we are seeing is that that revenue decline should actually benefit the margin side of the business. POPULAR ARTICLES ON: Environment from India. So as Jim was saying earlier, specific to the commodity-based businesses, we have some caution around those. So make sure I've got it. So we're doing a better job on SG&A than we actually anticipated. If you live in a single-family home and wish to participate in the county's curbside recycling program, you can opt-in by contacting the Customer Service Center at 804-748-1297. Waste Connections customers are eligible for one free appliance pickup each year. Looking forward to seeing you in New Orleans. I don't know that we're hearing a lot about tech because I'm just not -- I think they're more focused on how do they keep drivers on the road. What we intend to do there, at one point, we had moved our renewable energy business into the fuel line, and with some of the noise it was creating in the fuel line, we saw value in pulling that out. The mission of the Solid Waste & Recycling Division is to efficiently manage the solid waste stream and provide high quality residential solid waste management services for the citizens of Richland County in order to enhance public safety, public health and quality of life in the County. So $57 was our average in the month of March. 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 10-K. 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. Yeah. The 96-gallon cart is provided to each eligible household in Richmond, Petersburg, Colonial Heights, Hopewell, and Ashland. Line map | Line map | Line map | Line map | Line map | Line map | Line map | Line map | Line map | Line map. Excellent. Prefer to use your computer instead? All rights reserved. These delays impact our team's ability to deliver on residential collection optimization objectives and targeted improvements in our maintenance cost per driver hour. No collection service provided on New Years Day, Independence Day, Labor Day, Thanksgiving Day and Christmas Day. Henrico, Hanover and Goochland Counties And I mean, there's benefits here potentially to the customers as well because historically, I mean, I forget the last few years. So, John can address the cost side and what we're seeing so far. Service will be delayed one day for the remainder of the holiday week. Follow the journey of items collected in local residential (curbside) and drop-off recycling programs through the MRF and eventually back into retail stores. About 70% of our resets are in the first half of the year, and those are all indexed to a year-ago activity. But the biggest benefit really is when you can stabilize the workforce, those frontline folks. I think the good news is two things. Recyclables, yard waste and any large or special pickup items must still be placed curbside. So we are hearing that, that turnover has become a consistent and recurring problem for a lot of those companies. ("Rules"), superseding the E-waste (Management) Rules, That is something that differentiates us from others who simply don't have that technology in place. Good morning everyone and thank you for joining us for our first-quarter 2023 earnings conference call. So I don't know really what the other folks reported, but I would tell you, there's no loss of discipline whatsoever. EBITDA margins were slight in 1Q, at least relative to the sell-side, I appreciate all the detail you provided there. No, So I think -- listen, we're thrilled that the supply chain and truck deliveries are starting to abate. Including Millwood. But I do think your point about being kind of an added synergy here is an important one. Learn more about the curbside recycling transition by reading the, Explore our parks, facilities and programs, Find latest alerts, incidents and reports, Central Virginia Waste Management Authority, Tidewater Fibre Corporation (TFC) Recycling, Central Virginia Waste Management Authority (CVWMA), Email Waste and Resource Recovery Division, Freedom of Information Act Requests (FOIA).