EXHIBIT 99.1
(WASTE MANAGEMENT LOGO)
FOR IMMEDIATE RELEASE
FOR FURTHER INFORMATION:
WASTE MANAGEMENT, INC.
ANALYSTS:
CHERIE RICE
713.512.6548
MEDIA:
SARAH SIMPSON
713.394.2154
WMI#03-16
WASTE MANAGEMENT ANNOUNCES SIGNIFICANT INCREASE IN DIVIDEND AND CHANGE TO A
QUARTERLY PAYMENT SCHEDULE
PER SHARE DIVIDEND TO INCREASE FROM $0.01 TO $0.75 PER YEAR
QUARTERLY DIVIDEND PAYMENT OF $0.1875 TO BEGIN IN THE FIRST QUARTER 2004
HOUSTON - AUGUST 5, 2003 - The Board of Directors of Waste Management, Inc.
(NYSE: WMI) today announced the approval of a quarterly dividend program, to
begin in the first quarter 2004.
"This company is first and foremost a big cash flow generator," said A. Maurice
Myers, Chairman, President and Chief Executive Officer of Waste Management. "The
Board of Directors and management of Waste Management consider the allocation of
our cash flow, to the benefit of our shareholders, to be one of our most
important duties. With the passage of the new tax law regarding dividends, we
felt a change in the allocation of capital is now appropriate.
"Accordingly, beginning in 2004 we are putting in place a capital allocation
program designed to pay our shareholders a dividend of $0.75 per share annually,
to be paid on a quarterly basis. Based on current share count, this equates to
nearly $450 million. At the current share price of approximately $24.00, such a
dividend produces a 3.1% annual yield. Our substantial cash flow will also
provide for a continuation of our stock buy back
program, at a level to be determined annually and for the acquisition of
selected core, North American solid waste assets that meet our return criteria,"
Myers said.
"This reallocation of the distribution of our free cash flow demonstrates our
confidence in the strength and consistency of our cash flow and is a
continuation of the Company's disciplined management of its capital with our
shareholders' interests as our top priority, and balanced by our commitment to
maintaining a strong balance sheet," added Myers.
The Company noted that it intends to announce the record and payment dates for
the first quarterly dividend in late January, with the expectation that payment
of the dividend will occur in March.
Waste Management, Inc. is its industry's leading provider of comprehensive waste
management services. Based in Houston, the Company serves municipal, commercial,
industrial, and residential customers throughout North America.
Certain statements contained in this press release include statements that are
"forward-looking statements." Outlined below are some of the risks that the
Company faces and that could affect our financial statements for 2003 and beyond
and that could cause actual results to be materially different from those that
may be set forth in forward-looking statements made by the Company. However,
they are not the only risks that the Company faces. There may be additional
risks that we do not presently know or that we currently believe are immaterial
which could also impair our business. We caution you not to place undue reliance
on these forward-looking statements, which speak only as of their dates. We
undertake no obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events or otherwise.
In addition, the Company, from time to time, provides estimates of financial and
other data relating to future periods. Such estimates and other information are
the Company's expectations at the point in time of issuance but may change at
some future point in time. By issuing such estimates the Company has no
obligation, and is not undertaking any obligation, to update such estimates or
provide any other information relating to such estimates.
o possible changes in our estimates of site remediation requirements,
final closure and post-closure obligations, compliance and
regulatory developments;
o the possible impact of regulations on our business, including the
cost to comply with regulatory requirements and the potential
liabilities associated with disposal operations, as well as our
ability to obtain and maintain permits needed to operate our
facilities;
o the effect of limitations or bans on disposal or transportation of
out-of-state waste or certain categories of waste;
o possible charges against earnings as a result of shut-down
operations, uncompleted acquisitions, development or expansion
projects or other events;
o the effects that trends toward requiring recycling, waste reduction
at the source and prohibiting the disposal of certain types of
wastes could have on volumes of waste going to landfills and
waste-to-energy facilities;
o the effect the weather has on our quarter to quarter results, as
well as the effect of extremely harsh weather on our operations;
o the effect that price fluctuations on commodity prices may have on
our operating revenues;
o the outcome of litigation or threatened litigation;
o the effect competition in our industry could have on our
profitability;
o possible diversions of management's attention and increases in
operating expenses due to efforts by labor unions to organize our
employees;
o possible increases in operating expenses due to fuel price
increases or fuel supply shortages;
o the effects of general economic conditions, including the ability
of insurers to fully or timely meet their contractual commitments
and of surety companies to continue to issue surety bonds;
o the need for additional capital if cash flows are less than we
expect or capital expenditures are more than we expect, and the
possibility that we cannot obtain additional capital on acceptable
terms if needed;
o possible errors or problems upon implementation of new information
technology systems; and
o possible disruptions due to the implementation of our workforce
reductions.
Additional information regarding these and/or other factors that could
materially affect results and the accuracy of the forward-looking statements
contained herein may be found in Part I, Item 1 of the Company's Annual Report
on Form 10-K for the year ended December 31, 2002.
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