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. ("Rules"), superseding the E-waste (Management) Rules, In closing, I want to thank the entire WM team for the fantastic job they do safely and reliably serving our customers day in and day out. pnwrsservices@wm.com. Even as these important parts of our operations grow our solid waste business will continue to make up the lion's share of our earnings, projected to generate roughly 85% of operating EBITDA in 2026. required to register on a central portal to continue operating and OK. Maybe just how did the value of the recycled commodities in 1Q compare to your expectations? Search for upcoming holidays that may affect WM trash and recycling service in your area. recycling chain. In India, there are a plethora of legal provisions which seek to protect the environment from attacks from the human race. Customers in Chesterfield County may use any container of their choosing for the remainder of the countys curbside recycling contract with CVWMA (ends June 30). And we've already seen in Q1, our fuel surcharge revenue in Q1 versus Q4 of last year was less than half on a year -- or on a sequential basis. The rules define various terms, including bulk I guess just to conclude here you've heard that we're on track for another solid year. Excellent. You mentioned something -- I think you said 30 basis points from a fuel tax credit. Instagram registered recycler on the portal and make available all records Recyclables, yard waste and any large or special pickup items must still be placed curbside. Integration costs and upfront dilutive margins of these acquisitions had about a 35 basis point impact in the quarter. And then is the holiday addition about a 50 basis point headwind as well as I would assume it's kind of like one less workday? Just I was looking back through the Q4 transcript, and I'm not really sure I saw it. And some of those changes, our customers are going to begin to see in the second quarter. We don't expect that to continue over the remainder of the year. returns. And how much room for improvement could there be based on the historical ranges of those metrics in prior downturns? skip to main . On the other side, recycle pricing, as we talked about a little bit earlier, is right on our expectations. 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. OK. That's very helpful. No. Yeah, Kevin. devices, monitoring and control instruments, solar photo-voltaic Historically, we anticipated the question. But as we do that, we think there's another probably up to 2,000 positions that are helpful positions that we just will choose not to refill. Business and School Recycling. I can't thank our hard-working team members enough for all of their contributions to our success. When we gave our guidance for 2023, we talked about working capital being a headwind in the year. Right. Sure. Your line is open. For a Thursday holiday, service would be on Friday, and Friday service would be Saturday. Thanks for taking my question here. This will help in proper recycling and safe disposal of e-waste. It's, in our mind, it's a perfect place to put a new MRF. Residents who dont hire landscapers to rake and dispose of their leaves have a couple of options. 2. and now includes any person or entity who: irrespective of the selling technique used such as dealer, Sat 8 am-12 pm. notified the E-Waste (Management) Rules, 2022 on 2nd November 2022 Henrico, Hanover and Goochland Counties redefine ways to deal with e-waste to achieve our sustainability In the first quarter, SG&A costs were essentially flat with the same period in the prior year, and spending as a percentage of revenue improved by 40 basis points to 9.7%. On the dilutive impact from commodity businesses of 50 basis points, you had that right. Invest better with The Motley Fool. Thank you, Tawanda. [Operator instructions] I would now like to hand the conference over to Ed Egl, senior director of investor relations. One, we have our toe in all those ponds in terms of watching all the technology advancement and see how it's not only going to progress to commercialization, but commercialization through a heavy-duty fleet like ours, which are two distinctions. I think the interesting thing, Jim, I think, touched on this, is that there is some domestic capacity that's opening up here this year. Our next question comes from the line of Toni Kaplan with Morgan Stanley. For more information, visit www.cvwma.com/recycling-2023. But as you saw within our post-collection pricing and more specifically our transfer stations, we continue to address that through the revenue quality of the remote gates at or the transfer station. It should be a net zero. Monthly calendar view. 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. Please contact the CVWMA at 804-340-0900 to request free recycling stickers for containers you own. Hello. (Dec. 25), and New Year's . It's a good point, though, because RNG is a renewable fuel. So on the call center side, we did not refill about 580 positions last year and there are another 300 that we will choose not to refill this year. It's a great question. Blanche Ames Elementary Construction (MSBA), SE Regional Technical Vocational High School, A 64-gallon trash bin is accompanied by a 96-gallon recycling bin (the largest available from any provider), each picked up weekly. flickr. Does this MRF make you more competitive as you think of the opportunities stemming from that legislation? And last question for me. reduction of hazardous substances by ensuring that products do not Please enable JavaScript in your browser for a better user experience. fulfil specific responsibilities. Mondaq Ltd 1994 - 2023. I want to point out a couple of things that happened in Q1 that we don't see as indicative of the margins that we'll expect for the remainder of the year. So, John, what is the trend on service intervals, new business formation, temporary roll-off asset utilization? How quickly can we see that productivity impact into your results? Request a Free Paper Recycling Bin. First question, I guess, is how to think about fuel rolling over in terms of impact to EBITDA and margins over the rest of the year. I just wanted to confirm that all the guidance is intact, and in particular, including the collection and disposal yield, I think you guys have given us approaching 5.5% number. To schedule rear door garbage service, contact Waste Management at 941-493-4100. Thank you. We're also expecting to see some strong accretive revenue come back in the collection line of business, in particular as our differentiated service model really pays some dividends in terms of our national accounts business where we are going to lap some of the contracts' expirations and we're going to see some contracts return. It understands things like location of carts. Obviously, the banking crisis sort of doesn't impact your business as much as some of the other business services companies. POPULAR ARTICLES ON: Environment from India. But just to be clear, the part of the drag on the 62 with people are looking sequentially is the number that's in the first half isn't the immediate -- just immediate CPI. While this impact was a little more than expected, overall, we're very pleased with the progress being made on creating value from these businesses. Yeah. This call is being recorded and will be available 24 hours a day beginning approximately 1:00 PM Eastern Time today. So far in 2023, the WM team continues to deliver strong performance. Subcontractors, we're still seeing a little bit of lag there, and it's really more of third-party transporters. maximum prescribed concentration. 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. The definition of term 'producer' has also been widened Our residential recycling plans offer customers the resources they need to achieve this. Download the 2023 recycling collection schedule. registered recyclers. You can -- we all know that the infrastructure is not prepared to handle electric vehicles. Yard Waste. Henrico, Hanover and Goochland Counties And do you just feel comfortable that you can maintain a nice positive spread to unit cost inflation both over the short and long term? All forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially. Incentive compensation was cash flow. and safe disposal of such waste. We'll be at 75% probably by the end of the year. Carton Recycling Program. This growth was led by core price of 7.4%, which exceeded both last year and our plan for the first quarter. 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 62 is a good number. So it comes to us, as any of our new MRF will, with lower labor cost, 30% is what we're seeing in terms of labor cost per unit with the automation that we're adding. And then on top of that, we'll have some added benefits from lapping some of the commodity price impacts I've talked about. And that's, in large part, what you're seeing out of transportation but also largely landfill pricing. And it's a labor-intensive business, and we have 25% turnover in those driver ranks. In terms of unit cost inflation, we expected in 2023 about 4% to 5% unit cost inflation for the year. And that is our expectation, is that the first quarter of 2023 had some margin pressures that we see as more related to 2023 specifically, such that the normal seasonal uptick that we see from a revenue perspective will provide the typical expansion. It actually doesn't become a help necessarily, but it's not something that we see repeating over the remainder of the year because it was a onetime event. And historically, Q1 has been the lowest yield for us over a period of probably a decade. 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. Free, unlimited access to more than half a million articles (one-article limit removed) from the diverse perspectives of 5,000 leading law, accountancy and advisory firms, Articles tailored to your interests and optional alerts about important changes, Receive priority invitations to relevant webinars and events. 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. produces an appalling amount of e-waste and due to lack of John Morris -- Executive Vice President, Chief Operating Officer. NOTE: this service only applies to garbage. They just happen to be higher than our expectations. Your line is open. I don't know, Michael, we've seen a meaningful movement there. So we are hearing that, that turnover has become a consistent and recurring problem for a lot of those companies. Residents are advised that service delays may occur due to weather and are encouraged to register for Discover the Paris metro map. Maybe characterize the flow of impounds and inbound. Waste Management requires all garbage and recycling to be placed at roadside for pickup by 5:30 a.m.on your regularly scheduled day. 2100 W. Laburnum Ave., Suite 105 We're not -- because we haven't been receiving the trucks, I mean, you can't make that swap obviously without the truck. The Village contracts with Waste Management for this service. Now, that they've chosen to reopen their economy, that is helping and that will help us out as well. Recent tax policy discourse has seen carbon taxes' becoming a popular tool to tackle climate change, especially as a part of environmental, social and governance ("ESG") initiatives. Image source: The Motley Fool. Executing on these priorities will produce the robust short-term and long-term financial performance that we've projected. 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. So commodities and RINs were a 50 basis point headwind, M&A was about a 40 basis point headwind. Waste Connections customers are eligible for one free appliance pickup each year. and applicability and ensure that all stakeholders follow the same It's not a negative. Hi. Phone 877-466-4668. As we move from traditional rear load to automated side loaders, we're taking a helper off the back and getting about a 30% productivity pickup, which equates to lower driver technician and truck capital needs. consumer, component, dismantler, environmentally sound management These margin impacts were offset in part by a 40 basis point improvement in SG&A and a 30 basis point benefit from the timing of alternative fuel tax credit. De nombreux forfaits et billets sont faits pour vous ! Or how are you thinking about that opportunity? Producers will now have to ensure that their products are 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. 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. 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? (Optional additional rubbish and recycling bins are available for $22.50 per bin.). Because effectively, you're in a unique position in that you also produce RNG as your landfill. For missed pickups of garbage and/or recycling, please contact Waste Management Customer Service or email your address, phone number, and regularly scheduled pick-up day ASAP email us or call 888-960-0008. 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 a particular year and same shall be added to the target of the So maybe it doesn't impact the cost line as much, but perhaps a surcharge line. 2. Now, any entity which has used at least one There were two primary contributors to our first-quarter results, the dilutive impact of recent acquisitions and continued inflationary cost pressure. over the producers of specific category of waste for the treatment 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. Couple of things are helping us. Visit our site for information on weekly trash schedules, bulk pickup options & more. That's right -- theythink these 10stocks are even better buys. I think -- when it all comes down to it, I think we talk about automation and optimization. RIN pricing would be one of those. AB341: Recycling. In closing, I want to thank the 49,000 people behind WM's success this quarter and every quarter. It doesn't look like a blowout for sure, but it doesn't look like the bottom is falling out. I'm not going to pay three times for an electric vehicle, what I pay for a CNG vehicle. New Internship jobs added daily. So that certainly is a benefit going forward throughout the year. We expect dividends to total about $1.1 billion this year. So that's clearly going in the right direction. So at the end of Q4, we were at $47. Our balance sheet is strong, and we remain well-positioned to fund growth investments. So what you're seeing this year is that those are going to be recognized quarter-by-quarter. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Easton's Curbside Trash and Recycling Program: Join Today! 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. And that was not insignificant. Looking forward to seeing a lot of you next week in New Orleans. The county is also establishing drop-off recycling stations at Harry G. Daniel Park at Iron Bridge, R. Garland Dodd Park at Point of Rocks, Goyne Park, Irvin G. Horner Park, Huguenot Park, and Rockwood Park. And I guarantee there's not anybody else out there that's able to do that. producers responsible for the entire life cycle of their products. Should be enjoyable. The new rules have expanded the scope of e-waste to include Home |Residents |TrashPickup&Recycling. Right. The lids on both carts must be closed to ensure litter free service. Can you share what you might be expecting for 2Q? Our collective focus continues to be striking the right balance between maximizing customer lifetime value and increasing price to recover higher costs. Waste Management's Orchard Ridge Drop-Off Facility (W124N9355 Boundary Road) for Yard Waste, excess Recycling, and excess Garbage is open. of refurbished product whereby the life of such product has been So part of our pricing strategy, obviously, a minimum to recover our investment there, but also look for margin improvement where that opportunity exists. *Pickups for over-sized waste must be scheduled at least 48 hours in advance with Waste Management. Thank you. Residents may also submit concerns or issues to the Village online with GONorthbrook or via phone at 847-664-4010. Thank you. to ensure that e-waste generated by them is handed over only to Turning to volumes, first-quarter collection and disposal volume grew 0.8%. We've had a solid start to 2023 and look forward to building on our success. RIN pricing is probably a little bit against us right now. Thank you. To make the world smarter, happier, and richer. We need this to enable us to match you with other users from the same organisation. recyclers; Residue generated during recycling process is disposed And you mentioned a number of one-offs in the first quarter. to the amendment, detailed information had to be included in the John will cover an operating overview, and Devina will cover the details of the financials. The Board of Supervisors has waived the first half recycling fee for recycling services provided from Jan. 1 to June 30, 2023. WM, formerly known as Waste Management . So I would say we're probably -- we were probably 60% of the way there on that piece. Your line is open. Thanks. And I mean, there's benefits here potentially to the customers as well because historically, I mean, I forget the last few years. 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? 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. So we're going to get a full complement of trucks this year, probably 1,500 to 1,600 is what we think. Thanks for taking my question. These adjusted measures in addition to free cash flow, are non-GAAP measures. The commercial sector generates nearly three- fourths of the solid waste in California. For missed pickups, service requests, container swaps, or other issues, contact Waste Management at 800-796-9696 or WM.com. Take a virtual tour of a material recovery facility (MRF, pronounced murf) on CVWMA's Journey to the MRF webpage, which includes a video about recycling in central Virginia. So we're excited about the MRF coming in to Toronto. Composting is environmentally beneficial because it provides nutrients for your garden and is economical. Recycle Coach App. Today’s top 1,000+ Internship jobs in Paris, le-de-France, France. We're pleased to see our robust revenue growth and disciplined focus on cost control translate into solid operating and free cash flow. Bryan, we are still looking to see $70 for 2023. Report a Missed Pickup. Devina, I'm wondering if you can talk about second quarter. I would tell you that's something we've been working on, and that's been a tougher hill to climb, obviously, because those are bigger chunks of a volume and big customers when you're making those decisions. This strong core price translated into collection and disposal yield of 6.2%, a 70 basis point improvement compared with Q1 of 2022. Thanks for the question. 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. Search. And then is there sort of a logical approach we can take to this combined recycling and renewable energy line that's now in the revenue build? But I don't think that California, if it's a combustion engine. For the full year, we continue to expect flat overall volumes at the midpoint of our guidance. The county recognizes the importance of recycling and its effectiveness in reducing the volume of household waste that ends up in landfills and desires a robust recycling program available to all citizens predicated upon multiple choices at the lowest price possible. With So those are the things that give us so much confidence that Q2 really will be outsized relative to a typical year. Great. Making the world smarter, happier, and richer. facilitating the fulfilment of EPR targets. discarded as waste and the term 'bulk consumer' has been not recycled in its facility is sent to the respective registered And Jim mentioned that overall, the whole basket of goods has moved up here a little bit as we exited Q4 into Q1 and then even exiting Q1 into Q2. All other residents may also take advantage of rear door pick-up for a fee. Good morning everyone and thank you for joining us for our first-quarter 2023 earnings conference call. So we've chosen to make that -- it's an incrementally positive step to go to C&G. Your line is open. In closing, the WM team has delivered a solid start to the year, which sets us up for another year of strong financial growth in 2023. Thanks, Ed and thank you all for joining us. contain lead, mercury, and other hazardous substances beyond the But everything we're looking at still seems to be OK. Receive an email reminder a day before your collection. . And a lot of that headwind, really all of that headwind was in the first quarter as anticipated because higher incentive compensation payments happened in Q1 because of the 2022 outperformance relative to our plan. To hear a replay of the call access the WM website at investors.wm.com. Can you talk about, did we get a full quarter run rate out of the initiatives that you mentioned on the call center side this quarter? Once you have your container, simply follow the same guidelines as . And so asset utilization, not necessarily where we like it to be. And now we're talking about much higher numbers, albeit in a higher inflation environment. . the e-waste introduced in the market and provided collection 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. 1660 Ringling Blvd., Prior Facebook I think it does, Ken, I think it puts us in a great position there. It's why we think there's an opportunity for us to take share -- continue to take share, first, because I think the customer service product that we are providing is superior. Our next question comes from the line of Tony Bancroft with Gabelli. Cost basis and return based on previous market day close. for verification or audit as and when required. Yeah. AB 341 requires all businesses that generate 4 cubic yards or more of trash per week to arrange for recycling services. So I think EPA is still trying to kind of work their way through PFAS. Since 1883, the Alliance Franaise de Paris has been devoted to sharing and promoting the beauty of French language and culture. I think from a progression standpoint going from diesel to CNG, CNG-RNG, it's certainly going in the right direction. This is a much-needed change to the existing regime to put India I get that there are a variety of factors at play. Kevin Chiang -- CIBC World Markets -- Analyst. I'm guessing kind of late 3Q, you probably didn't hear a lot of phones ringing in terms of requests for product. And I'll now turn the call over to John to discuss our operational results for the quarter. And so why fill them up with kind of low-priced tons when we can fill them up at a slower rate, maybe at higher price tons, preserve some of that airspace. Good morning. Yeah. It's actually -- well, one from last summer, which would be lower than the CPI that was at the end of the year. That's the subtlety of your model because so much of your business resets in the first half. Yeah. Garbage & Recycling. On the dilutive impact of M&A at 40 basis points, that was about half solid waste and half recycling. Landfill volumes led the way with C&D volumes up almost 37% in the quarter, driven by the hurricane cleanup in Florida and MSW volumes increased by almost 3%. And our goal is to ultimately get to 90%. which means that e-waste that is still functional can be repaired Take your leaves to a site that has been registered with the Massachusetts Department of Environmental Protection. primarily emphasize on proper recycling and safe disposal of EPR, and producer. For Business. GFL will provide you with regular, reliable curbside collection of your recyclables on your scheduled service day, and a suitable bin or container to hold items until they are picked up. So that's another thing that gives us confidence. The 96-gallon cart is provided to each eligible household in Richmond, Petersburg, Colonial Heights, Hopewell, and Ashland. 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 WM Holiday Schedule. ET. So let me take that in pieces. As Jim mentioned, our first-quarter organic revenue growth in the collection and disposal business was 7%. Schedule I of 2022 Rule, at any point of time in the particular The refurbisher will But some of those other positions that we've talked about, John mentioned it, which is replacing reloaders with ASOs. In the first quarter of 2023, we saw the best driver retention we've seen in two years. So yes, that was a cash flow impact. That's the headline. And how do you see that impacting your business? 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. Copy and paste this code into your website.