Waste Management 1Q13 Earnings Call notes

posted in: Notes | 0

This post is part of a series of posts called “Company Notes.” These posts contain quotes and exhibits from earnings calls, conference presentations, analyst days and SEC filings. The quotes are generally pieces of information that I find interesting or helpful to understanding the company, industry or economy and are not meant to provide summaries of the full content of the call. Other posts in this series can be found by clicking here. Full transcripts can be found at Seeking Alpha.

“On the landfill side, we’ve seen the return on capital at our landfills deteriorate. The primary reason is because capital requirements and operating cost inflation have outpaced price increases.”

“we always say it every year in the first quarter that the first quarter generally isn’t very indicative of how the year turns out because you haven’t seen seasonality kick in”

“On the collection side, look, you all know that the game we’re playing is not a market share game. The game we’re playing is a yield game and so I don’t think we gained any market share and I wouldn’t expect to see us gain any market share during the course of the year.”

“I would expect as you see CNG become more and more popular for over the road vehicles that there’ll be an infrastructure built out for CNG. So I would think, Michael, that over time we’re going to be able to convert the whole fleet…But over the next five years it’ll probably go at about 1,000 trucks a year. Right now we are at about 12.5% on the fleet.”

“the issue that you have with glass is that it more than any other commodity it hurts your equipment, right? As you process the glass it puts a lot of wear and tear on the equipment.”

“What’s going on with our recycling team right now is they are basically doing a clean look at recycling and saying in a low-commodity environment, what do we need to do? It’s pretty simple to say that we need to go back and manage rebates. That’s easy. But what else can we do to change the dynamics in the recycling industry so that we can get the return on capital on a more steady basis and not go through the volatilities of commodity pricing? And one of those factors is finding a solution for glass, whether it’s having a surcharge for glass, or finding better outlets for glass, we need to do something to make sure that we’re recovering that money.”

“What we’re looking at right now is a glass surcharge, so that for folks who want to maintain glass as part of their recycling program, and most municipalities do, we’re going to have to charge”

“On a final note, we have a proud member of our family that we want to recognize. Ricky Glover is a highly respected driver in our South Carolina operations. He’s been providing excellent and safe service to our customers for 15 years. Ricky’s daughter is Candice Glover, one of the final four contestants on American Idol. Candice has come out on top of thousands of contestants to reach the final four.”