Waste Management Announces Plan to Increase its Quarterly Dividend Rate and a Refreshed Share Repurchase Authorization
December 14 2020 - 04:30PM
Business Wire
Per Share Dividend to Increase from $2.18 to
$2.30 on an Annual Basis
Waste Management, Inc. (NYSE: WM) today announced that its Board
of Directors has approved a 5.5% increase in the planned quarterly
dividend rate for 2021, from $0.545 to $0.575 per share. On an
annual basis, the per share dividend rate increases from $2.18 to
$2.30. The Company also received authorization from its Board of
Directors to repurchase up to $1.35 billion of the Company’s common
stock, superseding the authority remaining under the $1.5 billion
authorization announced in 2018.
“For eighteen consecutive years we have been able to increase
our dividends due to the strength of our business and the growth in
our free cash flow generation. We have a resilient business model
and expect to continue to perform well in the coming years,
positioning us to confidently increase our 2021 dividend rate,”
said Jim Fish, President and Chief Executive Officer of Waste
Management, Inc. “We are pleased to be able to return this cash to
our shareholders, as dividends remain a top priority in utilizing
our free cash flow.(a)
“Now that we have closed the acquisition of Advanced Disposal,
our remaining capital allocation plan, after paying our dividend,
will initially focus on strengthening our balance sheet to quickly
return to our targeted leverage ratio of 2.5 times to 3 times. We
anticipate achieving that level in 2021. Our capital allocation
framework has not changed, we remain focused on maximizing
long-term value through growth and optimization investments and
returning excess cash to shareholders,” concluded Fish.(b)
Waste Management’s Board of Directors must declare each future
quarterly dividend prior to payment. The Board of Directors intends
to declare the first quarter 2021 dividend in February, at which
time the Company will announce the record and payment dates for
this dividend. It is expected that the first increased dividend
will be paid in March of 2021.
The Company, from time to time, provides estimates of financial
and other data, comments on expectations relating to future periods
and makes statements of opinion, view or belief about current and
future events. This press release contains such forward-looking
statements, including statements regarding the amount, declaration,
timing and payment of dividends in 2021, future share repurchases,
future capital allocation, future debt reduction, debt levels or
leverage ratio, future balance sheet strength and future business
performance and free cash flow. You should view these statements
with caution. They are based on the facts and circumstances known
to the Company as of the date the statements are made. These
forward-looking statements are subject to risks and uncertainties
that could cause actual results to be materially different from
those set forth in such forward-looking statements, including but
not limited to, increased competition; pricing actions; failure to
implement our optimization, growth, and cost savings initiatives
and overall business strategy; failure to identify acquisition
targets and negotiate attractive terms; failure to consummate or
integrate acquisitions; failure to obtain the results anticipated
from acquisitions; failure to successfully integrate the
acquisition of Advanced Disposal, realize anticipated synergies or
obtain the results anticipated from such acquisition; environmental
and other regulations, including developments related to emerging
contaminants and renewable fuel; commodity price fluctuations;
international trade restrictions; weakness in general economic
conditions and capital markets; public health risk and other
impacts of COVID-19 or similar pandemic conditions, including
increased costs, social and commercial disruption, service
reductions and other adverse effects on our business, financial
condition, results of operations and cash flows; failure to obtain
and maintain necessary permits; disposal alternatives and waste
diversion; declining waste volumes; failure to develop and protect
new technology; failure of technology to perform as expected,
including implementation of a new enterprise resource planning
system; failure to prevent, detect and address cybersecurity
incidents or comply with privacy regulations; significant
environmental or other incidents resulting in liabilities and brand
damage; significant storms and destructive events influenced by
climate change; labor disruptions; impairment charges; and negative
outcomes of litigation or governmental proceedings. Please also see
the Company’s filings with the SEC, including Part I, Item 1A of
the Company’s most recently filed Annual Report on Form 10-K as
updated by our subsequent Quarterly Reports on Form 10-Q, for
additional information regarding these and other risks and
uncertainties applicable to its business. The Company assumes no
obligation to update any forward-looking statement, including
financial estimates and forecasts, whether as a result of future
events, circumstances or developments or otherwise.
(a)
Free cash flow is a non-GAAP measure. Free
cash flow is not intended to replace “Net cash provided by
operating activities,” which is the most comparable U.S. GAAP
measure. The Company defines free cash flow as net cash provided by
operating activities, less capital expenditures, plus proceeds from
divestitures of business (net of cash divested) and other sales of
assets. This definition may not be comparable to similarly titled
measures presented by other companies.
(b)
The components of the Company’s leverage
ratio, or total debt to consolidated earnings before interest,
taxes, depreciation and amortization, are defined in its $3.5
billion revolving credit agreement filed with the SEC.
ABOUT WASTE MANAGEMENT
Waste Management, based in Houston, Texas, is the leading
provider of comprehensive waste management environmental services
in North America. Through its subsidiaries, the Company provides
collection, transfer, disposal services, and recycling and resource
recovery. It is also a leading developer, operator and owner of
landfill gas-to-energy facilities in the United States. The
Company’s customers include residential, commercial, industrial,
and municipal customers throughout North America. To learn more
information about Waste Management, visit www.wm.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20201214005755/en/
Waste Management
Web site www.wm.com
Analysts Ed Egl 713.265.1656 eegl@wm.com
Media Janette Micelli 602.579.6152 jmichelli@wm.com
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