WM - Earnings call transcript Q4 2017 | Waste Management, Inc.

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Operator

Good morning. My name is Theresa, and I will be your conference operator today. At this time, I would like to welcome, everyone, to the Waste Management Fourth Quarter and Full year 2017 Earnings Release Conference Call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session. to of call Investor like Egl, to now Director Senior Relations. would turn over the Ed I Thank you, Mr. Egl.

You may begin your conference, sir.

Ed Egl

Good our Officer; Rankin, and earnings Trevathan, Executive Thank joining and President and morning Devina Theresa. morning, President Officer; thank Fish, Financial and Chief you, Jim Executive you are us Jim for President With and fourth Senior call. XXXX Vice Vice Chief quarter Officer. me this everyone, for Chief Operating

Fish each Trevathan XXXX from an our of guidance and comments will prepared the XXXX. Jim a Jim cover and guidance, financials today. update, volume hear cover additional will will for details provide and related You'll Devina operating overview provide high-level the them of including price and details strategic and cover financials,

have The started, Form schedule and the press release the Before please a important information. morning, includes our we on Form press to www.wm.com. available the that note website the filed that get at X-K, and earnings release this include X-K release, we press it's

actual call, or During projections are to on uncertainties which based hear risks statements could statements, materially. subject forward-looking expectations, and that cause will periods. differ to about current are future opinions you Such results the

results references to workday All release growth uncertainties yield the of revenue volume discussed and our risks otherwise SEC, a are and these of stated, areas internal discussed adjusted on volume, specifically which, Some our in and IRG today's more filings or results from are our recent or basis. yield volume. unless in are Jim Form discuss and will press most in including the with XX-K. Jim

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CEO, Waste Management's the over Jim I'd call Fish. to turn President Now, and

James C. Fish, Jr.

all-time of seen as each our joining arguably operational year the on Thanks, financial all were set About income, that best activities new operating each and for very XXXX and of by those records highs. morning. in exceeded this provided say XXXX, Ed. and EBITDA, all, we've us metrics. our metrics. cash operating net of mentioned operating pleased I'm And exceeded thank year highs ago, was expectations in one you, I to we at those we that,

double-digit in continued more Our price, EPS of adding profitable core another improving on focus controlling year improving disciplined $X.XX EPS, XX%. costs than volume manner, and a produced with of improvements

income In margin both highs. achieved operating and EBITDA addition, margin operating all-time

time first flow Our operating close EBITDA conversion cash XX%. for $X free billion exceeded to and achieved the we

generated that in repurchases. dividends During strong us shareholders $X.X to free cash flow XXXX, we billion share and allowed to return

solid capability in achieved see foundation business. The beyond. into to and for XXXX the generation success continue the growth growth of XXXX sets we our cash in We that continued

the year, organic price and full X.X%. increase flow majority our Revenues operating increase best more and EBITDA is increased in solid growth or And importantly, the revenue in by is driven EPS, the seen since cash million, free This XXXX. we've the dollar volume. of strong growth revenue. For is that $XXX

the improving customer high-margin this For collection the and exceeded volume for X% In company all yield X.X%, price we've XXXX, XXXX, delivering cycle X.X% while of to core that volume full was was total continue service. marking with price year year. for In exceptional first the disposal X%. and our year, the focus we volumes, growing time on full in

the XXXX. that Our forward strong look on. right our these are we results focus to And progress areas conviction continued to reinforced into

we and between flow For $X.XX billion. and $X.XX expect $X.XX be free to $X.XX XXXX, between be to cash and billion EPS

seen and Executive and Officer, Jim Tier Operations, the you have turning want X-K produced President internal was Operations, The Vice demonstrated Devina, process of our of very President made Trevathan, Vice Jim have Northern their Jeff our Environmental succession their Operating candidates. recent at to the to announced to of has a point over of Safety we that not tremendous Tara of those this President Before group excellent may Both Management our plans of recent call Compliance. group and success and which out throughout of and for by distinguished Jim the our Senior contributions Harris, our Chief an strength Waste end Vice and year. promotion both Jeff solid Hemmer careers retire have I to it. to who planning filings Senior succession of

date, Devina their turn more and our and XXXX I strategic will detail. over a our discuss with future. As and to fourth commentary Jeff's our will guidance Jim I on our and quarter details in to suffice brief provide in the XXXX additional conclude now further say, excellent approach succession results call and are Jim comments. we in retirement beyond today following And operations to be on we plans. to leadership But hands the will will continue it

James E. Trevathan

Thanks, growth. to Jim, business and fourth and saw operations from good consecutive operating our EBITDA the quarter, the in continued third volume traditional morning. price for waste quarter. both and We income business solid X% In our exceed drive

$XX points last total operations from an to almost grew compared And company XX.X% result, when of a income XX%. year. operations As to XX from million, income increase expanded basis margin

or to billion, in in points Our compared an our to our was increase combined million. the when quarter, X.X% when driven grew when was were fourth operating $XX recycling our volume the business $X.XX was year. an fourth of from collection basis volumes, operating Revenues lower And quarter The expanded EBITDA $XXX In and compared of quarter the XXX million collection growth by price million, quarter million, fourth of X.X%, margin last disposal core XX.X% to of impact impacted prices revenues X.X%. EBITDA of compared to revenues. the in and $XXX quarter increase disposal fourth yield Fourth the drove a XXXX. were recycling and of and by $XX predominantly commodity price lower revenues negatively which decline X.X% and XXXX.

cleanup was and basis was front, in increased points basis up City franchise volume the total New solid Volumes disposal X.X% the from collection about Angeles X%. new traditional the from volume by fourth Texas volume and Florida, points new the Los from XXX and quarter contracts. York and XX volumes On in benefited waste hurricane

business metrics, business to quarter, at service Looking for continued exceeded the quarter. XXth lost consecutive exceed the XXth other for revenue and consecutive decreases service new increases

increased remember franchise the Los related net quarter this churn result a with in recent accounts transitioning of to of but contract City customers Angeles the new franchise. the the Our of due in that gain contract, to new

from point sequential churn basis our a churn expected improvement. these the customers, was Excluding rate XX quarter, fourth X.X% the in

a density-based locations, measured customer For we like have we and do churn so. historically ours, to number the business based of continue will upon

improvement excluding these our customers quality we However, basis, was with the expect of churn improvements on strong on a if in our a focus it contract. in service Los City X.X% With metrics metrics. from continued the Angeles and of providing all offering, at you look differentiated churn revenue

core collection special cover the volume volume up in quarter. led the well. volume exceptionally In increased Florida business hurricane specifically, growing quarter. with XX%, X.X%, Our continued commercial revenue from third and the of grew was to price while aided of from collection price volume combined business, business, price fourth down X.X%, quarter increased of landfill fourth perform volume volumes and was fourth XX.X%, the by volume the More volume MSW combined our Industrial and generating core C&D XX.X% was similar with increase of X.X%. was business line grew up operations volume income and $XX total grew X.X% in to cleanup residential In lines X.X% to line line core in million. price Texas. the residential quarter, in X.X%, In X.X%. The the waste

we which On base front, strong XX.X%. our up volumes, the in MSW volumes saw were

waste-to-energy XXX points outage at We MSW an our to our plant, continued Virginia another volumes. from to which benefit added basis

wildfire impact increase Our of the C&D included cleanup. California the volume

Excluding the volume quarter. a our still fourth robust that XX.X% C&D in was cleanup,

from achieved X.X% combined $XX led XXXX. of XX%, the million XX% of growing core or than to MSW price was than and we The more and or positive operating business the Regarding growing in total pricing, of fourth $XX operations compared to X%. landfill income more EBITDA yield quarter and million when price line volume

from increased the operating basis hurricane cleanup. We points basis points increase XXX operations and from XXX points, basis margin landfill in line margin including XXX also income saw EBITDA

be year yield greater. we For we XXXX, expect of and same X% and projected the volume greater or to see results XXXX, that price to or X% the strong in core with price full saw

X.X% consistent grow for between in XXXX. full and In of addition, the the in year we in we that XXXX, achieved range to with volume total X% results expect the volumes company

as in quarter, and commodity recycling mills. delaying at X.X%, the average of licenses import impact volume declined X.X% or renewal prices of import our Looking declined business, recycling licenses fourth we canceling saw the the to their China

When guidance licenses we on first as these XXXX. share to of XXXX preliminary end and we operations by EPS when The in a control $X.XX impacted in expected. continued As in of of pricing of negative increased to we continued recycling the meeting first they to costs. enforced, price see China the upon impact negative recycling standards $X.XX is then, the than in have XXXX. now fourth the compared OCC in and a expect the in with quarter December the did negative quarter. quality pressure, did those result China fourth strictly to cost the impact contamination have volume of we will $X.XX in weighted volumes quarter grant we until decline fewer October, and limit be recycling $X.XX that under anticipated business share to for in the number expected factors, expected any to our were currently a EPS, Since lower gave now half proposed per not the impact October, import which XXXX. grant Based new X.X% per remains

costs, expenses. operating The increased to now due In costs to total compared collection, of with volumes largely leading quarter increased XXXX. operating higher fuel when and increases million repair maintenance the Moving fourth were expenses. $XXX fourth quarter, to the cost and

of percent gains XX% operating as XX.X% the transfer other and and XX of revenue, a a control cost basis percentage points than the XXXX. expenses, quarter improved of lines, offset in recycling higher of cost more labor of and basis XXXX expenses the Efficiency fourth at revenue. from in and Our to quarter the as points XX costs fuel in particularly increased our disposal facilities effort, fourth

retiring operating believe of strong to So, I And personal field percent expenses finally, basis note, waste end in of thanks execution company team. of on Jim summary, at a business hands mentioned, revenue by during quarter, in great improved our and am traditional points moving as and our forward. as the the the is our corporate a XXX I solid XXXX.

proud in we strategy Our senior developing field, corporate company. our field ever group leaders, have the leadership aligned to diligently best we with at and and as teams, I'm and our been our the have corporate I history. field in on believe that of aligning say and my worked are our leaders tenure as we've

their with our both business pleased. very time. and to of board had for couple here with I the opportunity based course, the after field, company company, Jim regarding our and of superb here over of leadership solely I was extensive My Harris operations and move to know the of As and the at decades at senior member Jeff a the you me my the in the corporate my the a of him a experience. and for I've and in the a other that perspective experience welcome on Management and more like believe John colleagues the in in have year confidence. that people room both been as of future. than retire, hands our in working and on today, and asked Jim's Along to with corporate, Morris Chuck, as privilege largest senior we CEO excellent transition in the from When and the the next Tara ago, Jim level we in the well. who all today know, including with Jim shareholder years and corporate beliefs. a I is and leaders leadership I heads, of And, Hemmer timing is this like I board ready Fish, field appreciated are team, and internal Waste after stay two the I are decision department have field team corporate He as success. in chose that Devina part long

place succeed. future First, leadership is and the in will

XX desire that desire my with and wife otherwise, we And the I move almost family well. XX our time that of spend and of wonderful years. it I to they trust with our more Devina it. as to outside next will after as to with She I have members customers, time also, grandkids. what's us. I months reminded family, our WM years deserves more transition goals, and to it's XX Second, company Well, to for I'll call company, Rene time to guidance. the (XX:XX) want I and many and the as have we our and have value remember, I finish our and sprint to financial shareholders, of plan for discuss further XX.X people, our But please results to remaining turn I line. our create now over accomplish to

Devina A. Rankin

dollar Jim, morning, cash free period. growing more business achieve then generated us adjust swap over we to results quarter to the if $X.XX Thanks, each financial our from of almost prior-year our operations revenue allocating X% grow cash good the that billion operating of and to $XX the everyone. converting year value flow, XXXX in increase helped XXXX, of strong Full provide $XXX to operations, cash of cash priorities increase benefit. flow XXXX, and from from and shareholders. million our an In X% of from that's an we was for XXXX, termination million operations, fourth In of our cash

increase cash flow as percentage demonstrated that Our XXX in is more year But average, grew when compared basis to importantly, point long-term operations metric, points revenue from the from the our basis XX XX%. to we prior of sustainable. a this

XXXX, in going We on this but We the $XXX capital and grow operating years focus cost again, from a $XX saw not continue flow of decline million our in management ahead. to working strong in the fourth generated million EBITDA. efforts just operating quarter to are We, quarter cash the control, efficiencies, to a of maintain XXXX. growth that's metric fourth of the free

our And more the placed growth we've was to in in that capital realize fourth entirely to planned, asset business us the year-over-year in quarter. in importantly, due service so, $XXX experiencing. from been but increase This support a decrease tax permanent the was benefits spending XXXX, million increase allowing to

to and $X.XX from year. For cash billion the consistent free our cash the for flow an and supports also we revised full million guidance of high-end The million XXXX $XXX the year, business in increase generated by shareholders strong generate growing on flow, tuck-in paid above our repurchases, dividends we $XX the free $XXX of acquisitions. In acquisitions. value and and focus we of returning through quarter, our the spent share dividends and funding on million fourth

billion million buyback million to stock. $XXX repurchase to shareholders, year, As we spending X.X growing year full over for full share XXth the our dividend $X.X Jim shares authorization returned mentioned, of the the consecutive our and our of for

We million plan the on high-end year. the also which was at of acquisitions, for spent $XXX our

Turning to SG&A.

For was million, period. decrease SG&A XXXX, the prior-year a fourth $X quarter the $XXX of from million

SG&A As quarter SG&A the XX.X% a is we revenue, full since the improvement a both were In of XX%. seen best and of year. costs point XXXX, XXXX. from XXXX percent of percent about margin When fourth approximately for a of we the at we expenses as full the expect be have and SG&A basis SG&A target year, this and to billion revenue looking $X.X continue to XX XXXX

rate corporate We the benefit rate free taxes, our primarily opportunity see decrease long the XX% but cash an investing less than our also grow state a in economy to had the from flows deferred guidance deemed focus earnings. net net some our and and as of a in repatriation employees positive tax our estimate this in slightly which to and flow in long liabilities company's sheet adjustment, we certainly below reform the we the After rate. of XXXX, XX%, one-time this step to corporate taxes XXXX. of to as on in to earnings quarter the our to points excluded earnings decline our otherwise XXXX will percentage by benefit our $XXX savings The of effective about and recurring we full and expected the increase tax year growth the tax expect We bolster then of for XXXX estimated effective for invest stimulated talking flows decrease run pay benefit but costs. due for deduction impact have costs in recurring business what XX spend would operations. as-adjusted will the we positive from future cash U.S. of cash certain balance immediately, continue share our The earnings $X.XX turning Canadian million these in lower re-measured fourth was our modest expected to certainly about will and rate $XXX to rates, term, tax earnings our a With tax about cash state of and I effective reduction continues the in our our rate benefit years was future making grow. to to this about the reduction year. for economy of reform, time million the a our the that and it by to will reduce in also the Before as a a per clear which taxes tax XX want non-deductibility on We portion our about for business. XX%, rate reform, is to ahead in the cash our

as previously includes $XX about bonuses in of This $X.X operating opportunity salaries to increase guidance think to our currently XXXX, EBITDA our million billion. the we guidance of as we the not plan, line $XX XXXX that to to to $X.XX approximately in expect project announced we to as headwind our hardworking who end employees well the million recycling pay incentive do So, business. million impact participate plan $XX at billion our in the get the of in will our

increase flow in drive $X.XX an billion of between with EBITDA XX% strong of this about free cash turn will XX% and billion, that expect We compared to $X.XX operating that's XXXX. growth

XXXX. expenditures incremental million to put in This in in investments to expect for But our to invest XXXX, by XX% strong and above as range as cash free in to business expenditures growth accretive will this $XXX growth. we the to of to, investment expect X% and cash and We a XXXX, revenue. EBITDA are in stated making temporarily incremental disciplined increase provide we we support growth to capital flow, allocated $XXX million we this flow cash drive us of again, fleet. our With capital demonstrated our in make returns increase way long-term long-term shareholders

for to share per to up is the in X.X% year. with cash and demonstrate dividend Our our per in $XXX conviction to in our then to to see committed This share as authorization share in authorization repurchase increase decade in and and our we acquisitions. our million shares. business complementing remain generation through billion share organic We the our increase board by growth the value repurchases, of prior continues XXXX a evidenced shareholders the from but a dividend in largest directly $X.XX increase the our tuck-in intended the of value dividends repurchase returning also

at the positioning make the will to to We acquisitions in to have of sheet right ratio strategic strongest now X.X continue a I over Jim. call back us turn times, price. finishing XXXX with well industry, debt-to-EBITDA the balance the

James C. Fish, Jr.

corporate people $X,XXX our discussed a large and in them, XXXX. recycling will our a skilled of Thanks, on our impact future, employees, including a our jobs term, component the company reform spending hourly, for a with of growth XX,XXX manual of XX,XXX use incremental those the for on organically focus Devina. of percentage and careers the skilled secret Xers towards long way millennial not Gen term. the gravitating the leadership design lead to our employees a our strategy Management. of stay is and objectives An list to and people our the approach given are our fleet, no strategic our acquisition. is full include a in business development, of the our bonus people to component taxes encourage century portion Waste a positions however, the make in of cash strategic to fleet the hiring, our that boomers to generation Devina career of trade approach and did. and the capital part and people, our some for that the training, must our a XXXX It's important the tax mind, In With to with both big position baby where Long through be technology retention. is XXst to strategic dollars

bonus our will Our financials was and step on the that retention a in $X,XXX first analyze to continue a and merits evaluate process of to to beyond impact program our able XXXX. we operations the turnover of be

front, our improve the we're On technology maintenance program quickly more our reduce the our the offering service customers. fleet company as across operating to to and fleet and replacement we strategic and standardized costs fleet driving

our improve In differentiation through digital our is is includes ultimate our strategies addition, customer overall The a that the fleet and our and of within experience. experience improvements new our operations and building hard technology. digital accommodation digital outcome greatly that fleet of bottom-line top-line through growth customers' projects continuous of and strategy team comprehensive digital work, at our creation

been much thoughts recycling As to giving a the management our business future. we've team, in

from believe others. all goals, our us our expect and their customers meet to team, we to services network plants, of Our provide them Waste recycling and Management sustainability management valuable our brokerage business recycling distinguish help

contamination several and pricing, operations. the years, processing by our we've re-tooled processing streamlining proactively adding removing fees, last and floor Over contracts

to its recent which, recycle returns our We're be plan sustainable mill fully provide Building plant among higher-quality the a can a produce future processing a solid, commodities new control that on standards to our the outcome continue the innovate taken provide ultimately, next-generation a for steps many an that partnering times, from future and, we requirements test recycled with piloting equipment opportunity control here of China product. meet with strictly Now, that robotic volatile by our of of to our the quality stay, are to enforce upon stay be value successful pilots, the shareholders, we build will part and the move sort annual sellers' we believe, next will create continue of our focused In plant for few may to improve Management $XXX With our line. less things, as for quality extent though, very XXXX to OEMs that have the will to be tax recycling the for acquisition of strategy. as our our was financial of meeting throughput return customers. currently outlet will Depending on would just customers of will discipline Rest is primary surpass million million return strategic to plan, determining acquisition to lastly, lower with $XXX changed. criteria successful production normal hurdle guidance our more change which expectations invest to our And factor to our now our companies add won't we to acquisitions. to have for whether as a in years. assured, our we year what XXXX we shareholders. summary, in those Waste and expect rate that opportunities growth corporate the due rate, and as involve,

which and earnings our us are and employees position flow our on to cash executing grow should beyond. plans, at continue work hard XXXX Our in to XXXX

We have Management Theresa, team that, want the the let's the for questions. and to best employees of with member in industry And each the open our success. thank for line I Waste

Operator

Tyler from comes with Raymond question first James. Your Brown

Patrick Tyler Brown

guys. Hey, good morning,

James C. Fish, Jr.

Good morning, Tyler.

Devina A. Rankin

Morning.

Patrick Tyler Brown

Jim. Hey,

add? additive QX, but contracts mentioned So, and talk New the really the side, you of much were you will in volume LA can York how the about guide those think on on XXXX I but in strong guide both

James E. Trevathan

so XX will They vicinity I don't it's, know, will Jim They Yeah, volume. basis some forward. add XX Tyler, Trevathan. points. that But points, obviously basis points in roll basis or

Patrick Tyler Brown

Okay.

James E. Trevathan

It's not huge.

City, there helping, full current through core into to to from move MTSs. will they and the they're Our and of very up business locations but is continue quarter for XXXX. well, we example, XXXX York be But as that base they're New volume those until expect Tyler, doing not continue speed fourth

full... won't hit So, year, until that late the the in

Patrick Tyler Brown

Okay.

James E. Trevathan

volume. City York New of ...strength

Patrick Tyler Brown

then, Perfect. be that Fairfax And you back a how Okay. drag plant online? expect comes to as much do

James E. Trevathan

about We'll same; XX in it's more the firm basis numbers, you About points. vicinity. get but XX, that

Patrick Tyler Brown

the pretty strong in of strong That's was maybe guys million about on QX, year, multiple okay. this year? EBITDA number internal on capital the And okay. Okay, deployed hurdle really what this rates the or in could kind maybe that then, $XXX tuck-ins, talk anyway are, but you

James C. Fish, Jr.

don't because will think the do we remarks, said about in you companies we of mean, I Yeah. key mean, when that rate now our rate. think, hurdle though, I I mean, about hit more NOPAT, think my I as look, normally portion talk hurdle that... I that that

Patrick Tyler Brown

Right.

James C. Fish, Jr.

obviously ...has changed.

about think in I mind happens $XXX now. normal as expectations, Tyler, we seller question a think kind big think is million, pool to broader what million is of $XXX the our I because the our bit So, to

have will meet candidates requirements. our return out We that there more

happens And individual what income tax then reform. to sellers' the so, question becomes with expectations things like

Devina A. Rankin

you think of I of I you on we hurdle Tyler, look at – think how that indication can look capital rates. think good add a I can would return But as just our invested

accretive. free we in for intend us that's about we have to available As the that cash many flow to we invest years, talked capital a through way our

for because capital we're on growth investing will in over and last on capital way continue years return a that our growth invested so, few return create ahead. over acquiring And the to years, business capital the invested the

Patrick Tyler Brown

Right.

of is to the to $XXX clear, there's be correct? then And about that in million assumed $XXX though, M&A Okay. guide, million

Devina A. Rankin

$XXX to million as $XXX annual about talked million we've target. our So,

will done with we way, can ahead, that Jim our well-positioned seller in in upon balance got sheet, to then dependent mentioned, of and order a get some but in expectations are we've whether be transactions environment. value year allocate new largely the it's we own in align view disciplined whether this and to going As the

Patrick Tyler Brown

question Trevathan, And Jim side. one. is this my Okay. this on last is you. the It's a for transportation

were? expenses lot the it spot? some hauling rising in on a talk guys structured? you rates of there's XXXX. multiyear can Do under on So, of usually like Do talk about the of or you Just sort subcontract how curious about it curious some just buy how contracts are annually, contract? if truckload really I'm buy here subcontractor is or you

James E. Trevathan

They're in volume our cases, annual, Yeah, into commit, primarily transfer landfills. from when at year example, Tyler. multiple moving most for we stations least contracts

rates may we immediate impact our our impacted like trend that see same a overall, back a time, but move we we going that disposal. Over it's customers goes that'll for one-year no be, raise get our to on as surcharges transportation, occur, we're basis. So, in cases, many if huge happen, from price fuel fuel cost There are impact. we'll but as change, the not pricing charge up on the as customers –

Patrick Tyler Brown

Well, Okay. thanks, All right. guys.

Operator

line of the Capital. Mazari And question next Inc. with Mazari comes morning. Hamzah Macquarie Capital Hamzah your Macquarie (USA), - Good from

lot you first industry different Jim faster frame few how churn improve there could Is forward? is know self-help there I capital, question and like forward? maybe just Jim us going measure The for specifically Fish, feels self-help than portfolio for at – on how turns if portfolio? your you could in you a for in much you a going maybe that and then, And ways, mentioned Jim, cash but maybe any churn is if to the actually the guys. there can it you also working much room

James E. Trevathan

churn I'll Hamzah, your Yeah, with start question.

on that As we lines a the as offering like more to I end continued customers improving it's we've improving measured don't It's focused basis, one to calls, a an churn, mentioned, a service reasons business. quality our opportunity. locations see customer to whether mentioned, of there's we've of reason a standpoint collection opportunity number stickiness. of on in of heavily historically see or metric so as on We on of create revenue these the churn the every we that, we're Jim looking churn. said digital almost one It's on at from

we're put improvement and We it's in that to a every topic not guidance that a to it haven't number you a going on, seek to but metric. we're going number give guidance year

Devina A. Rankin

true And would the say, capital I working then. Hamzah, the is front. on same

something working how those the for will the to difficult to to as expect rest to. capital, that can predict And regard that year see speak bear and we changes. that churn our strides quickly make fruit ahead. You with XXXX strides we made that's industry we good certainly of to the pay continue business attention our you'll we and It's cash in rate compares in results it the to

the ahead, is say value, our the be the extension our as It'd difficult the change additional using. on move improvement that of year you and of XXXX. business. parts address approach continue both the to day-and-a-half we've parts to first to tend And going on As on in we that's to because, been and same all you an needle, that got that ahead, our to an provide applies results in We're target mindset to the certainly we most and it's DSO see in that example, quickest but that to easier DPO DPO the the our focus great year continuous that's be what know, when improvement, that going continuous first. something parts will you

sums just billion, in billion your Hamzah up number And is Capital of savings the through on sort color there? of Sure. basis? reform to that of So, Any with I it's that on cash Macquarie guidance. much $X.XX $X.XX - flow it regard flowing tax to how bottom-line view (USA), then, Mazari guidance a guess, into self-help, of free the Inc. the

Devina A. Rankin

Sure.

of basis full mentioned, moving a depreciation $XXX of That bonus pre-tax in versus million I $XXX basis. is the reform then also as the rate, about capital. reduction on corporate of So, expensing the inclusive a tax million expect to rate, both reform reduction from we and

into then planning spend we And repeat. about have earnings is an talked benefits quarter. won't that when some to pulling million pre-tax that offset of fourth expect capital our tax of as by $XXX We that so, $XX growth. we look did can $XX forward our the some million million XXXX, increase at And then, we

number benefit. accomplished in fourth of other that planning quarter tax provided also some initiatives us We the a

you in Got all we and Macquarie of year says, - capital cash and in about of million but business, on And focused So, of flow-through million waste I Capital Mazari (USA), avenues, want energy? M&A, all, issues limit know kind or specifically the whether tuck-ins, expectations be as that any expect you. investment other the basis, business peers flow you to your million you ahead. to $XX I the of earlier. it's just are from your solid thinking sizing of that know one there's M&A? heard at antitrust What's M&A grade, higher, Inc. just M&A? some I waste color allocation, the terms on seller so in think sort maybe as industrial free that we priority Hamzah allocation, maybe go-forward on you are capital the there's a $XXX that what Jim, in increase don't would of on $XX you in look how

James C. Fish, Jr.

working think seems Yes. M&A, middle be many Specific the calls I we've Hamzah, on right to fairway well for us. of times down to that the said pretty

if So, to kind order be solid some I had say middle waste into businesses not down first, that services forward are like. and of we would expect very solid straight may be the I waste, businesses a that tangential but growth, there the nice real of that that these, XXXX, would but we good in XXXX. particularly Certainly, going half shown is some energy business latter are

the growing are is and that in will a it like as related a we that we recycling, we So, and economy XXXX anything then down, in industrial does that And because like. business it's though committed business areas. business, and business well appear to. to is waste even still XXXX The the services that's those grow haz recycling

areas. Macquarie Jim, Congratulations, probably retirement are grandkids. key Thanks. on and So, XX Inc. Mazari Capital those the (USA), - your Hamzah Great. the

James E. Trevathan

still no Capital more Hamzah, hope. (USA), Inc. I - Good. Thanks. here, and Hamzah grandkids, I'm Mazari Macquarie

Operator

of And your with Stifel. next Michael question comes Hoffman the line from

Michael E. Hoffman

taking incremental Thank can vehicles just you faster, way to Plus – million, that. volume Devina we really about replacing necessarily that. adding it's good understand Jims, the faster, here. with very start think not trucks the start the Devina, for can would $XXX we you questions. a or much it's and That's growth – be the to CapEx, had

to So, the deal you you sell with, think development some that? need that's way to incremental about got

Devina A. Rankin

with think both. of regards it would fleet actually I answer, to So, revise the Michael, part to is that I the say

and it's core some trucks landfill So, our growth. commercial of increases. And existing volume fleet investing replacing we see and – it's collection incremental right, as then accelerated industrial trucks seen faster we've you're in

And more so, we'll development on the side build as out well. sell

Michael E. Hoffman

Okay.

worth at on garbage through utilization it growth. and at XX covering driven years of underlying additions, in a there following the true that the my fundamentally would hope So, hours' this add back where on to is that's XX add my now, And to the by XX let's being when this, full the company was sense volume XXth time grew XXth starting utilization. hours; a of I mean, is route average, to and route truck a yourself into of truck you're XX find way about to collection it? get worth hours hours' truck is think XX so,

James E. Trevathan

at healthy it, the about and stated the commercial routes Michael, our we mean, I Yeah. look yet way X%. I numbers, script, as I grew at very grew industrial volume, in

across expect a is growth seeing district the the way, it your metric standpoint So, opportunity then it we the and we at at affects we company, that very where We fall And local level, probably do biggest the at look GDP? of we're also as a – we're strategic areas look but each growing. at gross we on we from looking closely What's truck our at what when do MSAs And are our look with forward. what planning house. side them?

James C. Fish, Jr.

for Jim to side your you and success, right efficiency on your X.X%, and that our and by something volume growing say routes the John about growing only service you're you're Michael, optimization doing years, success tells I through which couple I X%, when Jeff we've speaks that that would you're the the talked Harris. program. delivery by a of of mean,

James E. Trevathan

that routes our of districts certified. SDO, and process example, owned that Michael, We've got are XX% about rolled for are We, the we several efficiency Yeah. our of ago. XX% years out our up

we're right, but continue your really at a concept overall it look to to And So, is little pushing we efficiency. may differently. that get metric-wise

Michael E. Hoffman

another because therefore, the this (XX:XX) reality think on there's enough. And you're there upside, something as -look pursue flow of midpoint of of $X this the got it I'm Devina, is and I million it year related, with at at is the – to it as in but like if the a when $XXX $X.XX cash then Fair play Okay. at the – you follow-through actually I million think having I can rate normalized higher the doesn't I there billion, a an going growth and operating to there's lot of of free – then put your way $XXX billion, running in CapEx, if a way is further that's there tax pace other XXXX to is. finished would to of look and

Devina A. Rankin

growth cash flow We've great operating free the in line. of got deal a

lower, where look one is discipline didn't just often first, in over long say, volume were the through the XX% we in a maintain the as that long our in would over and in and of the it of about X% And range. But through the talked tools to helps growing that revenue expenditures broke pricing us time how of for to a years we that think long with you focus trend term, is expenditures. we've capital for price when capital our X% revenue. bottom I to we percentage growth regard range, So, target capital term, certainly, our toward being about

typical if can be we when assets in and focused you the above be that on deploy participate expenditures future, level continue the saw looking volume of growth that So, long of to high-end going we as expenditures in at making because capital a in way the expect we're to expect a our to of that the capital to range, XXXX, sure in we're we in growth. percentage revenue see over really XXXX term

XX% And us the XXXX at ahead. year take revenue in And so, plan, capital to to the XX.X% of it'll if of finished XX.X% in you at XXXX revenue. we in about look about

XXXX. you we see to if see that to you tax infrastructure capital. spend And can then level we can so, I it's higher of too potentially ahead, economy continue way to responds us XXXX it spending to a But and with tell and the guidance expect early for start on reform us give the

James C. Fish, Jr.

X.X% for component in and that to is that kind of add $X,XXX to like there $XXX would darn kind business thing which that's Devina the and million in of is we EBITDA growth at gave $XX best got single guidance that which Michael, our and $XXX is; free in recycling million is we've was I you've in million said, of And X.X% one somewhere got something $XX flow, indicator X%, that, a to $XX what the million, how is you headwind EBITDA. my in look that, the that you million if on doing to factor and bonus, cash strong. biggest of economy, mind, between pretty providing X.X% still of whatever is it the

core think is We're I business here. that you we're it with tells really the the that performing handed we're pleased with well. economy business, pleased the

that it I number the is impressive underlying cash free – number. the is And through think most that went so, flow but number Devina EBITDA number, that well,

Michael E. Hoffman

in baseline cash tax enough. the flow to like billion. Fair reform? free $X.X and you reset What's now that that post and Devina, number look XQ, to And

James E. Trevathan

– higher. be reform we to to around Or lower honestly, the economic somewhat inject America that seeing CapEx baseline is in higher with the shareholders? give it clear those. they the mean cash what I just is corporate here, do been has directly Michael, much. but tax by come and higher going is before other really, and will corporate central figure think we out baseline by companies in taxes with form question is mean out how that economy months to, the economy be the the not I next will to, I free return flow So, higher to of need a think growth? it this which up, a corporate at side a it few American is point, to is used going see we're to really I it the our number way, the not used that the position is and of

than or different free we reform handle them And on some because of taxes little the this that flow. cash to tax dollars or is way a these is tax tacking just simply

Michael E. Hoffman

dollars. you summary growth would disposal, price, for recycling, that I Okay. imply a fuel, in your if – in X% In break guidance, I of that do that collection, least the X% the How line? datasheet about the million revenue way $XXX for Fair – get to I at recycling enough. your about headwind the disaggregated what's to think $XXX in that on up million when look the at season,

Devina A. Rankin

guidance? at our look XXXX we about revenue, you're When speaking

Michael E. Hoffman

Yes. Yeah.

Devina A. Rankin

Yes.

Michael E. Hoffman

Yes.

Devina A. Rankin

recycling expected the the we when headwinds think year from it's ahead. So about revenue, look we $XXX in to million at

Michael E. Hoffman

Okay.

retention where you do it? is and XX,XXX stand mechanics? pace and drivers this opportunity That's Okay. your juncture And employees that in at the what And you can then, do improve at within there the you think very what are retention, helpful.

James C. Fish, Jr.

mean, Yeah. probably we XX% think we're I about when close to turnover.

that, place groups turnover our Michael, half is employees. mentioned. two our in in really years, turn about our – of I'm so, job And turnover that with the takes first years. interesting two of that place you talking two about first what's those But half that takes

ourselves have that your there some our objective we is to to type and XX They we is year a them choose some date, of to retention can them program? with to we get point of currently if pass that months, that is months hang So, Waste $X,XXX with year Management. we'll of merit if really can see then, at we part of months onto them make with that. to the And and was so to at That the the that really extent now magic career to buy get XX first – them. to there next to is the the magic end company, we a whatever XX then two, longer-term somebody all, that analyze was, get also the year

James E. Trevathan

year look right to drivers, customer or two or new it on risk longer-tenured scores target, was just or our issue we've compared efficiency to of from other you'd that retention. the at at time spent that Jim's was thing if little lot point, drivers driver. cost Michael, looking kill color of And of bit driver a a that just our I'd technician that and this first those add And, just

the So, it as get value from side long-term you retention, on the number as as can. we value well that, core true get we the that real not you will only obvious get low down business value, think, as do add we

James C. Fish, Jr.

I that improvements plan. the haven't gave higher range you, cash of to any I higher we that, numbers the And that numbers it's of are mean, some seen and that turnover that's a none cost can any than the a by way, be employee $XX,XXX number that some quite in. And baked in got baked number. in Michael, higher bit that I've we've that into of a than show

So, our improve gravy being XXXX turnover ends us. that in for extent with actually $X,XXX, to just we the up the that

Michael E. Hoffman

then, Very of And now in side, is the good. volume number? out on it's XXXX, out the Fairfax

James E. Trevathan

Yes.

Michael E. Hoffman

Okay.

James E. Trevathan

Yeah. Yeah. up. It's back

Michael E. Hoffman

revenues? it or get but deals, dollar referring you're I And what not up. then, spending, It's want sure on I million just is Okay. or just make $XXX sure want $XXX dollars or revenues, the back I to to you're to I million, was... to make

James E. Trevathan

That's what we're spending, right.

Michael E. Hoffman

spending, You're okay.

million And pace with the and (XX:XX) and people so, $XXX what now, staying we'll the to million activity, $XXX you're for see of

James C. Fish, Jr.

to looked deal of spent so. bar squishy (XX:XX) year a $XXX I the it deaf million $XXX – years Yeah. but whatever is all and we us across come And, million look, a good because it $XXX that and we million, that $XXX a and spent or of there's number where million last we've has was the really sudden and year, mean, table kind then was been before, or number

can number change. that a $XXX individual that a this very think of So, and number but could we million $XXX year given about We've reform. kind is and that particularly, number of corporate million a tax but number to guidance as easily change,

Michael E. Hoffman

Okay.

Devina A. Rankin

that guidance. anything $XXX $XXX our to build about didn't We million million in

Michael E. Hoffman

to Fair in that to have more to China, of but enough. to then was is some you rest lastly I'm the assuming was – then goes there it and And exporter has I on goes alternatives. sense is be mix XQ, there's taxes, found less the you're the And X to big other the it recycling, of X.X% curious just expense, pretty price. lower

so Chinese wait how for have And the Year and found we see to New the now go is volume pricing over. places to market you've the behaves and once

James C. Fish, Jr.

of slow with the this the low it part. on is Yeah. is I'll first China. low, for Trevathan share – time year this the a Really this is

point. So, buying lot a this at they're not cardboard of

because for And this the kind coincidence it, a lower ago did them year same of So, prices right year. how of plays is time demand the off. drop a to for not Green you're time seeing during they a is out we're years with Fence us this of the do that seeing few that that's

So, I think a price a we're And projecting Jim, fourth we've and maybe XX% to in then quarter normalize in in little and in cost the the seen, of of starting our QX. side in something of and QX processing particularly neighborhood go limits up. even more terms decrease that other we X.X%, cost, QX. but is, commodity And are prices in to contamination QX, these then seeing is because in

going the control that have – we of something and that's so we're that over And in addressing some forward. we're process

James E. Trevathan

charges, three four really have of our And on customers. But the Hey, of Most to changes it of for but model itself. of valuable We the for Michael, last team we those time. spend of regard. in the still part lot a cost, time, we've this real talked we're We've about more have of finding materials. a aggressive cost that We started talked of and shareholder, but we corporate, to we we've are contracts to part aggressively. outlets for added still best got rid we've our we is over your contamination, and that reclaim our And couple did also last cost done charging materials. volumes, business first It contamination calls. or a absolutely is it gotten at lot that industry mentioned at looking think, third-party to Jim years, are to about down, that around charges work value, gotten business get – affect floor value the outlets a quite pricing. contamination materials. contract in of want our them for doesn't And out that I we're to contamination we've mention, as part, yeah, the bit outlets our

getting changes most the again, to And that For the a itself, our of customers of them a cost. price the clauses in to well, so public and properly. long-term, managed model no different those these it the issues that transportation. try we're have sector getting residential contracts, it is but are that kinds effort little But doubt, aggressively as place, affecting business without of improve from we're materials, of there, task. because reclaim cost is have And ramping-up rid but

James C. Fish, Jr.

for it's think I better And against overstating go think environment. the us contamination here. battle also it, we're to going for don't economically. that's to I to Michael, better say It's

So, we on it's right definitely thing are go to the to to all do fronts, but going battle contamination. against

Michael E. Hoffman

municipality back how collection... the it to honest because of the the part the means of point fascinating approached the having This it's continue to is conversation, start, the has and from fascinating conversation – part at the but form conversation, is in I an that been of getting realized about this this everybody

James E. Trevathan

right. exactly You're

Michael E. Hoffman

Yeah.

James E. Trevathan

And the to benefit creating a it's business environment. as model, sustainable well as about sustainable

Michael E. Hoffman

Yeah.

James C. Fish, Jr.

All Corey talk going We let up. right. better or he's hang to

James E. Trevathan

Corey is next.

Michael E. Hoffman

So, the you your community and one say business and a it, thing, years you can XX It's and better for of Trevathan, pleasure Jim you I known serving. you. been thank just last both I've leaving than found most you're that that are

James E. Trevathan

you, Michael. Thank

Operator

with line next And your from First Analysis. Greendale of question the Corey comes

Corey Greendale

prepare; that Good can morning. thank I you. next. I love I'm that previewing

James E. Trevathan

I see it on board, here. the

Corey Greendale

sunset Trevathan, year. sprinting hope final good and Jim it's on the a congratulations into And Yeah.

a questions. just of So, couple

things you've on couple hitting of talking about. So, actually of all, first a maybe been

And or you're retention should ways things includes other reinvest, million bonuses. maybe of well as EBITDA in for goes away, thinking to to the more we do? improvement now was On million that mentioned, like you answer, bonus the kind just one-time little cost Jim looking bit? definitive talk a a decide about so you about philosophy, Can side, I'm did how this, not it's you're thinking Fish, why you purposes? how right do about to modeling thinking another similar kind going the out but $XX about $XX that you're like of a XXXX, you're for lines that thing you're bonus, going for along with say but

James C. Fish, Jr.

those this to about somewhat were incentive make Yeah, part plans, something, of returned economy the of couple through our because relates today returned in fact argue uncharted nobody know the it – there that growth? just share a them that through shareholders salary and would felt we've mentioned, it call some Keep to objectives our repurchase, the careers seen we we've a on shareholders. shareholders about where us, it a we've to to that and water mind, Waste the and is answer. is to kind and back I And the what big But best been to thought call how best or beyond we returned that through Devina Corey. the Management. so, that is we straight – do best objective in as table this of at dollars this participate we on employees, I really at we've I then with mean, it of as those folks was into that economy of don't to don't is a or something talked seeing look, talked to about forms. mean, for haven't like in employees the lot encourage to has and the reduction as and tax other dollars just giving injecting injecting

that future, that ourselves the help And payout programs hence the was help by so, in the buy at bit a time, piece end for us year designing potentially that of the a little doing of with us of objective to and retention.

that really answers whether know So, was question, I your that don't but our thinking.

Corey Greendale

Yeah, that's fine.

James E. Trevathan

like – and inflation then that got teams. work we'll think inflation. one how demand, the stress not more employees changes just wage This that issue. of look wage closely at the and MSA, with few a retention I'd do place one and our piece that. continue sense. We We and per we really to to strategically with HR we we've was think employee look combat I do needed to there. place. accordingly. found in just we look changed by improve in color more It's $X,XXX we nothing competitive adjust in We any to at We've to at a wages them, normal our that process has that

James C. Fish, Jr.

absolutely either, the It wasn't That's right. promised, Corey. way, by

Corey Greendale

front, growth, country to answer. parts opportunities or the that for still disproportionately think, appreciate is Fish, going Is would in you that the much I opposed I is And what of of past the you're for Jim country do And you've somewhat, economy of an everywhere. question volumes how like in kind growth and kind to of this number seeing hard much? now, the growing part either – the about of on say much another the that No, case? that market focusing are after as country volume so maybe in adjustable not of not you opportunity of slightly go looking how talked looking on answer for volume I'm that then is the to not put kind in bucket but, as we're

James C. Fish, Jr.

think, how Corey, but Texas not area the area would our and right pretty Florida news in Northeast. boy, our we some that so good very hard it was right and an looks good find monthly the in It strength. good the looks it to you but to look talk through of financial used I doesn't have talk to reviews – doesn't vice that, as it's we the tell about go country now here, presidents, good rest is good. you're hey, I in that's

decades historically that places Ohio is slow example others. little stronger back. than cleanup, has rust of energy has Texas California real areas Pennsylvania. hurricane have there growth: to But terms three because Now, a for to of and that's that's are the area, that come show fantastic and even promise some been been slower business are excluding belt kind been, Florida. starting for have of the us but in now started some is for Michigan as absolutely right

well. for New good England's us been as

as named start a up us. area bit just energy-driven. well because about Texas So, is just like Canada is to well. more Canada will is. would it's Western more Texas I Canada I've for Western us for like pick little every doing But expect that

So, hard doing that's now. one pretty well not up come right with to

Corey Greendale

Great. one. quick last And just one

As volume of there the full or like quarter-to-quarter? I point numbers the to year or difference, the far to out changes see meaningful big difficult as where if particularly don't we're relative as modeling you work anything the a you'd know out but quarters as in event-driven of look comps kind us hurricanes year, is make you

James C. Fish, Jr.

our year I could at they which simply number of if buy purchase for something this call. going just exporter. headwind stay $X.XX really, not think, And that would still, same they But about they that overall the recycling. a to If still if China, only $X.XX to bit. revenue keep how less a a so, lot if But on a this level basis, in as us talked right remainder unexpected obviously, of base. our a are wrench the increased do were into XXXX. from we've is we they basically today, the in gives now to decided for pause that business operation decided that's in terms yeah, they're $X.XX throw to happen, OCC, mind crazy that the or $X.XX kind XX% I as We, is an know prepared to something of that, a revenue were happen don't of recycling for to of huge

that solid be strong including thing very, us The say, only me traditional recycling. looks guidance, rest to now. would impact this right our of waste, causes the okay, could very one So, our

James E. Trevathan

landfill only one Corey, second happened on in that the is And the the side, other debris half all storm of year. the

the shouldn't comps be should that still it landfill So, difficult affected; MSW will regard. more be in quarter. get core the But strong, regardless just of

Corey Greendale

Got it. the for answers. Thanks

James E. Trevathan

Yeah.

Operator

Noah comes Oppenheimer. question next your And from Kaye with

Noah Kaye

first stronger the It And in looks the like half there, of amplifying the to actually XXXX. pick-up Thanks. right comps volume Corey's for year, were all-in, question. just

mean, the about half So the about quarter? think volume I it XXXX, first mean, of just in and strength gathering third year of precisely a be bit little should lower for I to the right cadence that it? that the X%, bit picking little the more Is a maybe in way

Devina A. Rankin

business. trended, of lot those in Account Noah, do with actually, way National the to comps, the had a Well they XXXX, anniversary volume the

so, business. line the And impact saw that's of XXXX, what particularly in you commercial

kind have year contracts in the we that don't So, large ahead. of, same, be that anniversarying we'll

So, than mentioned to anything with the volumes the and what Jim debris, there's regard that landfill dramatically in quarter-by-quarter would other influence trends volume not the XXXX. storm

James C. Fish, Jr.

with slow to us, the look through at a say, is is very on obviously, we when look of good January, what into January's month encouraging that we month. Noah, and I recycling, we will volume had we're as still volume, XXXX,

a So, of we're saw but XX, we of month X small what it's encouraged it's the looked with out in January; sample, encouraging. January

Noah Kaye

back years' Great. about than just and think Thanks low-margin volume. I some I then average strategically. years, mean And think, was shedding on higher we're always disposal certainly, collection thinking mix, unwanted at least going I business five many yields for for or price/volume that.

XXXX, and on volume par outstrip for Now of looks XXXX. in yield seen they're we've actually like kind

price, leading now out? this price-like to because can result it not way years like of how strategy the I So, mean, looks necessarily you comment just with is the is it the growth? looks, as kind playing of many basically it's of

James E. Trevathan

strategy all. we – I think, regarding our We're not have no. changed at price

have put some, second again, change, obviously. We forward. waste But house. defection the are We've last go right half helped gotten economy kind get did; processes of volume will the the occurring storm guidance has year the at we've level from corporate economic in what go that year from execute the the Jim The The of Virginia of about in good way. side. volume the leading things some should take core right debris defection was that has the the volume that's and in place outage the we've and per especially of on and talked strong focus move in we're of special We area to GDP. on we'll our the with from and MSAs and know our about. volume We helped Those pretty resources improve advantage That's price numbers that. gotten it our change price that to to come think most the talked that attempt cities relationship, we better. side at

we've So, is opportunity as the gotten getting there, volume. that better at

James C. Fish, Jr.

to said our a the people came that pricing on XX call about against But on get what talk We've points asked for don't of CPI that just we've last bearing hasn't higher which basis CPI all of And XX% worked into always few us question Noah, basis it's I per years, CPI we've we for about it, we saw that typically kind numbers price your we of have question, One CPI. we'll CPI that – total does expected. yesterday, some built our equates because point increase does. XXXX. XX But direct increase, base is numbers in than mean, the has and our business. about impact pricing a irrespective out been said CPI in most about and we're indexed $X.XX share.

the because of October. take index-type already So, we've we few year full in a XXXX. tailwind we would them from January get full July price a upside some will get with there, the expect won't increases albeit full to basis, CPI, could into half-year there and lingering on of we there But that taken, for be tend in on us but year a tailwind some CPI, I be once kind of basis a our

Noah Kaye

much so the it, anticipating answering for the queue. in question I'll back and jump Thanks Jim.

James C. Fish, Jr.

All right. Noah. Thanks,

Operator

And of with BMO. from comes Jeff your the line next question Silber

Henry Sou Chien

to just on calling and you're competition I'm above core next that Hi, I how of going kind curious over are much And understand Thanks was good the price to Jeff. thoughts pricing. seems the much of Chien, pricing price? It's new then, your just how for I achieve was you like And hear the the Thanks. of this into kind growth? of embedded any Henry to market for going sustainable years? of trying few to seeing growth morning. contracts? able core getting X% how that ask that is But in achieving in

James E. Trevathan

from be. Yeah, couple it, been think any competitive collection for and We're always don't – strategy will It I I but to core from obviously increase for price different more are business, we core marketplace get we to the customers. I that our five better go a has XXXX. difference start-ups – than that think or in the all very Volume set volume will isn't core helps XXXX be. up of us give some and There that on. still of allows don't and and the it just years. see is than had Henry. a competitive And comes landscape and see growth, get It in in ready changing, competitive our XXXX going and last are do the teams a that it price to two we've economy. again see will don't and I I ago. change today years opportunity

Henry Sou Chien

it. Got

but of do industrial collection wanted terms more the the your of growth Okay. strategy. acquisitions – looking or all and I And in switch the I your is just Great. routes know types you business, M&A imagine it's That's whether you. good any you in there? With shift you're throughout accelerating at, potential shift thoughts your back of to or in or kind putting that a to U.S., on you of opportunity, of Thank focus of curious mentioned in to are expanding the any kind acquisition thinking hear. just

James C. Fish, Jr.

identified and come could only Henry, but might would technology-related. to anything mind be this down different, The certainly something be that haven't thing, path little we that a

our other too see in of think you us than far that, outside kind terms I M&A. stray norm won't of of

Henry Sou Chien

Got it.

Okay. Thanks so much.

James C. Fish, Jr.

Yeah.

Operator

Bank from question of America. And Feniger of line comes your with the next Michael

Michael Feniger

for Thanks guys. taking my Hey, questions.

James C. Fish, Jr.

You bet.

Michael Feniger

the what though, your leverage cash curious, this is just ratio optimal going is like I'm company? view free up. Clearly, flow on for

trying that cash at mean, higher free a have now. of the I'm thinking cycle? waste part I this just guess to what I baseline we're the surely flow. of about leverage right You below be we think should

Devina A. Rankin

to are you debt to speaking So, EBITDA?

Michael Feniger

Yeah.

Devina A. Rankin

leverage? regard to tenure. that you're my time that And certainly best Is below Yeah. certainly level, long-term for averages. a at with goal think, that fact is investment-grade We're our the talked what ever asking the our rating. the we've in I a been, about has solid long company We're

think we'll when so, And and that over to We business That's long we chase priority, first we continue dollars up invested capital that grows as to leverage. to return for our on to grow that the invest more about leverage our is don't term. as grow ensuring and EBITDA cash by long allocating prioritize the that to grows business accretive things term. business our the continue aren't

needed decisions are the So, to comfortable think we today rating. times that we is would is – We, because we're where leverage. make don't we want what maintain that to with our certainly, short-term up affect and are around comfortable investment-grade to X.XX

Michael Feniger

investing lastly, fleet, benefit. investing the business, guys your using clearly Okay. And a and just That's are tax you as helpful. reform in

adding is of are guys, there you volume and routes, of players. concern tightness guys smaller adding X%, You out routes I being disciplined. the seeing just smaller of seeing know that or get you ahead you're of I'm what a the growth? players you're in sense trying how are for trucks market any mentioned up maybe underlying to the the

James E. Trevathan

whether our the I XXXX historical haven't seen Michael, Yeah. parties any they're all majors. change XXXX competitors or view of third versus in the that or small the

who I I a the is in one-offs, long is there for always affect the us part. business disciplined think, manner not that industry think, disciplined this general, in and, most that any a over rewards would I of but haul. the are those act mean,

Michael Feniger

Okay. core. lastly, mean, And just is mentioned recycling if you I of I could part

M&A. the with exploring You're at what looking of of you're pillars that's that part

push to on more would bit that. it with at you you it recycling? or technology? little a a more looking actually comes trying that scale when be is to certain at M&A looking Is kind And what more have to of Just on focusing

James C. Fish, Jr.

that technology. about where earlier answered I right. look question at and be a at place would maybe we an might technology, You're it at,

might there's We're some. be in It at where the looking recycling we to innovation my business. But technology of in remarks, As looking volatility piloting be already smooth our of of and testing, would find prepared always I business. mentioned would for area within business. kind where line we're nice out some recycling the that an

Michael Feniger

Thanks, guys.

James C. Fish, Jr.

you. Thank right. All

Operator

And there are no further questions.

James C. Fish, Jr.

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Operator

Thank you participating be available Time Time This Eastern through today X:XX beginning PM PM conference Easter Standard call. Waste replay XX:XX March for will X, Management on in XXXX. for today's call Standard at for XXX-XXX-XXXX. concludes for replay XXXXXXX. is This number number is the today's to ID number conference the the the replay for replay The dial XXXXXXX. Again, ID Management call. conference is The conference Waste

disconnect. now may You

Waste Management (WM) 15 Feb 182017 Q4 Earnings call transcript