WM - Earnings call transcript Q4 2020 | Waste Management, Inc.

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to Waste Management's Fourth Quarter and Full Year 2020 Earnings Release Conference Call. At this time, all participants are in a listen-only mode. After the speakers’ remarks, there will be a question-and-answer session. [Operator Instructions] Thank you. to conference like host to now Mr. would hand over the your I Egl. Ed is Sir, the yours. floor

Ed Egl

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

high them hear operating and level outlook. comments cover cover each the Jim You'll XXXX John overview; an including of financials, will financials of a cover today; update; prepared Devina strategic the provide details our will from will and

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

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

or are SEC, of specifically XX-K our in Some and discussed the are today's from most more Internal release of yield or discuss IRG areas Growth risks the yield unless and XX-Qs. with noted, filings references recent which uncertainties press Form John Form otherwise and our results volume. subsequent in will these including our Revenue volume, and to

addition quarter will including do have be Any management margin from to unless and stated, During adjusted will excluding comparability the operating reflect or of incurred and operations the measures, reconciliations be performance fourth ADS. at refer our fundamental can the EBITDA projections. operating discuss additional income quarter most which business the in which measures believes our release before EBITDA, certain Jim, for operations, enhance flow information results website been company's comparable are or non-GAAP depreciation found Services measures. www.wm.com of non-GAAP items Disposal Please tables, of EPS, SG&A by of the non-GAAP and comparisons, and acquisition and in These to expenses use call, on fourth GAAP is amortization. measures that costs about Devina not free and our adjusted to Net John Advanced otherwise press to XXXX. with connection and cash earnings with income,

over recorded X:XX approximately This a EBITDA on can earnings replay and for Additionally, to reconciliations Eastern our XX hours call our Time is are quarters being of a will the p.m. found call, table Management's dial Waste for XXXXXXX. releases of operating call today also at in press be call, Eastern p.m. www.wm.com. website XXX-XXX-XXXX www.wm.com. prior of hear and in until the today's is quarters X. March and respective no prohibited. the February six website Management form during replay Internet, the of Waste the redistribution, rebroadcast this Time-sensitive any replay. Any reservation To information or be access may XXXX XX, retransmission provided consent at time without at of written of on longer a To beginning the on be adjusted call expressed accurate enter occurring included those Time code which available hear a is the telephonic X:XX day

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

Jim Fish

XXXX full impacts consistent the quarter the team that XXXX. from I you ways well. us, in for thank everyone and quarter a and delivered of our and exceeded fourth again, was strong fourth performance. quarter and our continuation strong quarter results. the third with hope Once staying our of EBITDA the joining operating all our year fourth Thanks, safe extremely pandemic, quarter many In our fourth Ed pleased and We're is despite

than showcasing as business. quarter If $XX versus the customers benefit million million quarter operating customers of to the more we and aside eye fuel of of tax XXXX. seventh This $XX members fourth operating reliable welcomed XXXX, the of EBITDA following quarter, you new credit substantial together In we Advanced the acquisition our the and kept the Disposal. $X generate in our fourth of billion, operating ADS consistency from XXXX high-quality our grew versus QX strength of service and on provide consecutive working ball was number set contribution a EBITDA our EBITDA our to WM team X% of to the even legacy

with fourth consider you EBITDA XX impressively strong dilution basis ADS. from quarter third at As operating quarter, of that it included when was margin the our XX.X% points

matched year, margin a highest of EBITDA full excluding set ADS, XX.X%. with EBITDA XXXX operating more And XXXX the operating of For our record new annual than margin we XX.X%.

the model have business our where in of our significant companies resilience financial at results the EBITDA. So crisis, and economic resulting many delivered record-high year year XXXX within Management people X.X% suffered a pandemic our from of operating Waste and full XXXX impacts

the that processes. our accelerate or us world. propel experience technology post-COVID than confident business connecting considerable disposal investments constituents, customers, in in forward shareholders, to improvement to position communities to perfect a model the transforming benefit taking our by our the WM progress approach addition environment. in spending Service measures are our leverage business, in and and investments employees, the technology front-end to CSD we're March all strong ever to made and made look We've of on accelerated back-end our WM we're is customer to the we in As our Customer focus XXXX, continuous more to our ESG seamlessly collection and in right towards in Digitalization the decision

and a efficiencies triple-digit reliability further our -- Most Our as our our the we will rate. further from CSD channel step receiving we're In growing to in automate of differentiate and at sales feedback creation is value online positive customers, importantly, processes service XXXX, operations. our customers. up manual drive automated

Phoenix expertise sustainability WM a in year's doing so leader will Open ESG other manner a WM has we're benefit no and the environment. ability Possibly and that the pointed sustainability. ESG-focused shareholders Microsoft of front, and On leverage highlighted Forum year, our during emerged McMillon Nadella our was our to both brand in recognition and CEOs, Sustainability other Doug two This true Satya as Walmart. to this with like for of panel discussion our demonstrate

other discussion, I where sustainability me, we about reputationally important our like WM saying, Following for goals. with an leadership can Doug thanks sustainability to where flattering also our to personally help their achieve them companies His note note it statement stands and regard received a was was from to large Jim. but with Walmart customers your and

uses as road own well-positioned impacts, composting of their service renewable build address energy recycling to other WM such array through corporations As an maps and including is climate to beneficial generation. and assist offerings,

Looking the on our potential financials. at impact

a experts largest So solutions and be all recycler low-value producers fee-based which WM of far of over benefit using in XXXX, gas benefit by our perfectly this next-gen the landfill pricing to for upward strong should to are fleet, natural gas us with innovative able long-term start many believe We're for gas of trend. that and as redefine disproportionately commodities the technology our loop three to position of largest North to trajectory on close of renewable the to processing America's commodities our And investments renewable gas, business in years. renewable long-term five a and expand recycling the our trend. strategy, one enhancements and next natural gas power make plants, shareholders portfolio new the that our from natural

focus the our organizations believe underserved we're UpSpire to on add being Admired ESG, value our focus these our Fortune the the the for in Concordance as List like a too. E in as taking employees hours our claiming responsibility or enhance COVID category. with Magazine's the getting Academy, in shareholders. for In that World's our to our spot to beginning Most It's industry in recognition. were long-term thing and on we shareholders, a through year benefits unemployed value and named addition right inclusion to well row, diversity, seriously very and of work top help rewarding the causes the guaranteed for our February in our social to very during to it's we Companies commitment the At we're long-established our as see S, to is creator do and strategic ESG Whether confident our efforts and third

and quarter for cut our Dow were low-carbon fifth tackling During help for the the for for to the A change. climate fourth risks emissions, named also non-profit we the year, Management recognized and named CDP's to environmental North Jones We List to Indices prestigious economy. were the consecutive actions World. Sustainability global develop The America mitigate Waste climate

Sector of in Leader Supplies. Commercial year row a third in the are Services we title the & for For

key the investments Our cost in and will us our we our approach with success. of customers core acquisition ADS. process we our to strategic as Last for lowering for ESG our technology sizable interact our to year, the and view greater foundation the offering operating our ingredients how model business future choice laid that is complement improvements, of and completed

and X% deliver us positions volume revenue this operating how of our cost business In a XXXX from retain disciplined to programs on execute to learned as XXXX. expect cost From growth growth the impact X.X%, and we structure lower we operate with year of in lessens. we expect XXXX remain ahead, we in improve beyond. our structure -- as All to for the cost an lower to the continue pricing expect organic to well growth that pandemic and in perspective, to we've

XX% operating EBITDA a overall growth and result, between XXXX. anticipate As XX.X% we in

and investment integrate improve of we substantial this in while our performed of in continuing investments and despite provide increase poised another the integration synergies expect from we We XXXX. strong CSD. margin in runway these all business, technology to further of and the with well The year full the its ADS profitability the closing, realize growth difficulties as from presented we expansion value for exceptionally the will benefits ADS future. for we're COVID-XX In in XXXX,

eternally over difficult face circumstances. to John discuss to it the have operational our the in who teammates quarter. I'll For year grateful that, this our for made to results call I'm turn the now happen of

John Morris

the morning, XXXX, of legacy the business Thanks, strong performance Management our operations. integrating both Waste in progress to Jim, and finish pleased the our and good We're very with ADS everyone.

results growth year our of since the said, time really began. for our model. and pricing full As produced and organic strength the quarterly healthy recycling business performance resiliency and Improving the better pandemic underscore volumes, first Jim revenue

X.X% expected, MSW volume, disposal volume excluding As Fourth third Waste grew of recovery. hurricane in X.X% of legacy quarter fourth fourth. improved quarter quarter the of volumes collection indicators a the cleanup, decline C&D decline continued strong both economic in grew to and the a from Management and X.X% sequentially in X.X%,

moderate did not see in cases quarter, the the recovery volume increased during While we of when the COVID rate fall. a backslide did

price In at late as fact, in lull X.X% encouraged look we continue would business, X.X%. to X.X%. November core of Adjusted from yield impact business. disposal December. we to January, the and we're and line the in make see was was volume, volumes for In residential fourth have Collection of been core collection improving and quarter price the the lower the improvement in progress

X.X% from basis requirements. shed the in to EBITDA up resulted our our as in lines X.X% into X.X% the not same quarter, compared benefit was declined carry we of in sequentially demonstrating was in landfill core price XXXX Our was again business X.X%, actions business million the points Overall, volumes fourth $XX residential to station transfer residential meet third operating yield post-collection our the period improved improve and quarter we return business, the these In quarter. to in Residential continued does XXXX to forward XX and fourth X.X% that expect price of core and line XXXX. key discipline this business. in pricing of

in Operating compared costs costs. fourth in revenue of quarter, noise to of quarter fourth in the XX.X% quarter to Moving the the were were fourth some XXXX. There XX.X% results.

the as expense basis Let percentage as acquisition increased points. me of difference. the walk revenue operating a through XX In expected, ADS the by quarter, you

fourth fuel for resulted credits, a of XXXX. fourth tax quarter XXXX expense years' Additionally, a of which worth quarter benefited revenue of the the with as percentage two timing headwind to credits, approvals of the government of in operating XXX-basis-point in

laser-focused demonstrating Aside impacts, benefit structure. improved costs a from cost cost as points, percentage revenue lower to on we a basis operating and from control are of continue XX that these

the during example, overtime halls an additional and commercial fourth between X% XX% As range the industrial to and declined yards of XX% and we decreased yet quarter, see X% in opportunities.

and ADS spend have plenty operating will ahead. also more integrate XXXX components in some opportunity at a minute detail, We work synergies. on percentage year we the Devina I cover a but operations guidance as the in further revenue of want we financial growth improve to exceed key our to of business, look planned costs to of as as our

aspects and disciplined We guidance are outlook we can on extremely confident stabilizing economy, of control that a volume in growth the and based we pricing. our moderate our

We volume revenue and We and expect growth and progressing during XX.XX% on well. between of integration between running in yield ground and organic revenue the growth disposal XXXX. from hit collection business X.X% and and on October XX overall it's X% the ADS the XX.XX% very

between $XX run to XXXX. $XX achieved million expect Combined $XX rate in million of We quarter, exiting during is annualized the million and with synergies million already synergies XXXX between to be million. $XX achieve $XX synergies expected million fourth our and in to the $XX

the to in half and the synergies early of that XXXX. one-third our estimate we've to onetime achieving come will remaining confident capture we And XXXX. these quarter. to as cost million will able adjust these which the plan majority the mentioned, second About $XX begin these extremely from are will XXXX costs of of from in that route synergies optimization the be in be in our we'll We results. We synergies synergies achieve first

discussed, and our are we're energy ahead. in growth anticipating Jim these and strong to central renewal our As businesses strategy from the businesses recycling year

million in recycled million of improved structure and fee-for-service new together expect We $XX to cost EBITDA. operating a MRFs recycling which $XX improvement continued our XXXX tailwind from stable model, demand between provide operating and for materials at

Waste The from an ahead. difficult to closing, We thank Devina several these our will and in done financial to our talk RINs be members incremental last from plans the in $XX outlook in sale the from energy team contribution want businesses and call about an those distracting year-over-year discuss to turn continue their including also months. team key in renewable for more of In of the team financial credits focus year new has the expect Management our this managing and know exceptional job pricing to million results our invest I over for business over our XXXX. as entire now and times. ADS XXXX further to Devina the I continues what has operations XXXX will I'll increased detail.

Devina Rankin

and Thanks, good morning. John

frontline sales our strong and the XXXX Our demonstrate in across throughout cost-effective an doing year. increasingly teams so serving extended for back-office strong results SG&A execution The our pandemic our from members the focused North way. customers America functions, which in to and and delivered same results execution cost discipline team

XX.X% and of that intentionally revenue, capital our of team Excluding XXXX to investments fourth improved the improvement $XX results cost the our operations and in accelerating of was for SG&A in million and XX-basis-point million that over Fourth while discipline pandemic. from in given the million $XX XXXX. pulled recovery billion. ADS $XXX million for revenue $X.XXX by SG&A achieved technology included We strong $XX environment. about the to of of a despite capital ADS business, support proud and our integration XXXX the this decline was the I'm spending million these quarters. $XX during third capital we capital economic spending difficult forward quarter of a

spending capital manner Waste in of the pandemic. flow throughout tremendous XXXX. free reducing declines generated Our in given from the volume $X.XXX a team as on focused billion discipline XXXX cash we showed targeted Management

flow of $X.XX $XXX of items, of the Normalizing million. Management some were GFL provide pieces. to cash billion. partially as result divestitures million. offset guidance impact cash the nature demonstrates the free moving let businesses our discipline and and the Given advisory two for impact acquisition these of the Waste These were proceeds business our nearly ADS After-tax This free was COVID-XX. ADS $X.XXX transaction me and after-tax $XXX on of to of capital strength transaction support the despite costs XXXX achieved the of XXXX flow proceeds this by we detail billion on original the of significant resilient result, from

the that were we CARES of to XXXX, relief by elected result and forgo $XXX Given of approximately payroll end we had planned the at the to we Act taxes defer. to provided pay strong million positioned

quarter, that dividend. the million repay In as fourth cash used third amount the free which XXXX billion and ADS expected XXXX in than I flow the we cash end flow XXXX impact we mentioned been free year, pay would As about of in our the $X.X anticipated, the excluding $XXX is better have at quarter. to for we

and $XXX year, fund attractive X.X%. share us full at billion repurchases. of of close. savings to the pre-tax repay be $X.X X.XX million of within total an comprised well ratios quarter credit the we of and interest short-term borrowings to ADS debt-to-EBITDA the $X.XX more cost million forecasted used to at average million. allowed of billion issued November, acquisition dividends financial to covenants in are less This XXXX notes we cash shareholders weighted revolving $XXX leverage in than both are than times our In senior Fourth For returned extremely $XX facilities. expected

during X long-term of to committed total to XXXX. returning debt-to-EBITDA are range We X.X our to targeted times

balance and practices our returns. and strong of we investment to and well positioned strong liquidity Our sound continue sheet are shareholder remain

Moving to our XXXX outlook.

underpins to of XX.XX% between John of As $X.X the business our $X.XX and growth operating and revenue guidance million XXXX in the ahead year disposal and mentioned, This organic with growth XX.XX% anticipate we EBITDA X% in collection solid X.X%. million.

in billion XXXX. cash drive between expected billion of and earnings $X.XX be We expenditures are growth $X.XX and free Capital billion. to $X.XX $X.XX strong flow expect this billion to between

target planned expectation spend investments in we while step a the Excluding long-term is integration as revenue even with our million X.X% line our in CSD. to up $XX capital this percentage about XX.X% of support of to ADS of capital

mentioned, our generate which Jim efforts investment returns. recycling in also and our renewable incremental of and we sustainability energy see strong As both in potential opportunities aid businesses,

allocation As MRFs, forward. the our the we've long-term for we technology maximizes CNG our energy plants renewable returns energy economic MRFs so and does shareholder We This at now renewable and fleet returns. our plan to and to our a seen plant more committed to strong improved in loop state-of-the-art network with planning investment moving very in ability those and additional our total to in We're close capital deploy latest are remain that taking company. returns plans landfills. also extends the value our and between invest

December, in planned we announced the XXth dividend consecutive As to are quarterly increasing our pleased be year. for

We expect our dividend in payments $XXX million XXXX. be to about

integration, the and to a our expect Given debt With the to $XXX XXXX. that cash their team free I capital investment million In to overcome than repurchases the the to repayment, we we remaining allocate want to tuck-in I adaptability unique closing, from combination billion the more sustainability-focused our challenges on our end of be range of $X focus $XXX ADS acquisitions opportunities plan flow on high-return typical and lower to for guidance of thank described share Management of earlier. dedication Waste million.

than Lara, open forward XXXX. questions. are better to With we we're let's that We line the and stronger looking for ago year a were a

Operator

from the from Hamzah [Operator will Instructions] Your first come line Mazari Jefferies. question of

now is Go line please. Your ahead live.

Hamzah Mazari

X.X% service on do should you Hey today. guys organic any trending? that? And growth seeing And good are how how side. X% on question think then you commercial you. are volume My morning. that's increases you impact -- in to we is Thank in the about baking volume? the vaccine on What first just

Jim Fish

Hamzah. morning, Yes. Good

that in service were as in fourth far at really because a negative we service we've seen the net first the good QX it's We as negative in quarter increases. course and looked as QX. increases of news First while go, quarter being

to macroeconomists so the saying relates volume then we we -- vaccine QX positive news are very that's rolls we most and that And good think about overall what -- as relates as turned particularly think in it And as small economy out. business. I recovers it to the as

like predict fairly know Illinois, were it's volume this to states talked encouraging it's are that states I York opened say show Pennsylvania California, recovery. Michigan, starting that the one that signs and have been But provinces for how vaccine States predict. starting have because still quickly and we states lagging. reasonably some the Normally, Tennessee, Florida those But New like for well. so are rolls don't the like hardest Québec that some us like then signs actually us predictable like are been we about that are to from of that Ontario Texas, There And but first previously is doing of also then to and some -- would way we states Arizona, go-round behind. -- out. hardest is course see to

are So start that to sense our starting volume some those think reopen perk half of here. even expectation we'll to front the and is haven't back will And back up the that that states of XXXX. to that the started states we in on be normalcy

Hamzah Mazari

that? what MRFs is Got any it. your see head? from you fee, regulation have And is That's very increasing? just thoughts that new impact around out investment all, whether in just would And been any you the thoughts the PFAS as comments around to tax to environmental EPA costs of renewable and able around regulation-wise that Biden this linked pass coming it's think credits a of see sort or the you've to whether Historically could business helpful. it's administration. anyway? you leachate EPA at I increased gas And but the through changes or landfill done any

Jim Fish

So the out we're to first. Not really one coming EPA. seeing the of I'll related last take what

of it's very in new First administration. this all early

standpoint they the thing but ESG really So we believe that from they to right great those that return. we also are provide do investments fact shareholder the are believe that an to related

a three recycling a course is -- something last been us business this related. flow that over doing And normal affected prices. your I nice the that is a do commodity four my to think I -- we're it we've of mean believe diligently starting there to disproportionately probably think we've plants on of And by then this that three last not But and months. is the and it said -- not way. and the in four in years. came uptrend So investing terms script renewable in also good will why we in in -- it's we these It's continue. ebb I and

your first an to coming expectations So way out question a what because really good from the I of DEPs we it's ourselves like to regulation administration. Whether our sort the regulations. in relates Hamzah EPA more, feel thing whether guess hold us baseline from a greater new And we standard. standard for odd are of we is or to than state ourselves a higher higher it's hold actually

And an at in greater as know actually being look the out residuals exactly we that do form things things come up ends don't combustion will us. being regulation of regulation differentiator what for this like a And PFAS while around opportunity. EPA we or of so, therefore coal like

So us displeased that the we're not for standpoint. holds with from what future

Hamzah Mazari

it. Got

Just question guidance guys I'm missed you curious a a that or change of or over. in is of part Are guidance it. anymore? just maybe clarification we not guiding sort EPS, if I'll there's turn it

Jim Fish

I think we year didn't did don't guide We last either and EPS Devina.

Devina Rankin

with are the months. XX/XX our that impacts difficult thing several strong that's focused really price Hamzah something the get close, purchase predict. depreciation that on adjusted while next there a we No. And real price have to allocation allocation to throughout view can And the of is purchase we're

noise course to something of we'll are over we elected that's get impacts not depreciation one on the EPS But clarity of that created one that the so year. reasons of in the front. that And guide the things the better on and

Hamzah Mazari

Make it. you thank much. sense, Got so

Jim Fish

Thank you.

Operator

Thank you.

Kyle question will next your Bank. of Deutsche White the from line So from come

line Your please. live. is Go ahead now

Kyle White

taking worse well. morning. family think or I about of ADS going. is particular talk in the occurring. just for Anything good better safe everyone And assets see is own I them? integration hope expected Hey pure than that Thanks the during that's you I that to wanted just everyone's question. weather the kind how this about you and now is doing

John Morris

you Kyle no, I on I think XX-plus track. tell I right in we're would think days

things for should no little things But timeframe think I think getting where contemplated. I the benefit we're have surprises. tell a be ahead. all that that The it. have frankly I been longer of in we've bit would encountered exactly real fact been there's We ready we've you we a probably that, did

in drive But we're that improvements that take technology some we're we fleet in able ADS making processes very, I'm there's you one As in have heard system be area now to will tell addition I and else. do all right side to terms very take as is And in on going total and far. the has QX pleased the in of get script to it synergies to data my you advantage migration that much the would place efficiency. where of with that routing as to with anything is so the at

Kyle White

it. volumes you And but is cost your do know very to I business? impact that this or sporadic increased have in a the causing ongoing situation, a still Got extreme of it's maybe the of weather sense

John Morris

here. I real going rough you now is been couple of kind be a nearly as what of a evidenced Houston forward is a outside the by Texas. with in would we of I how what's not part happening Houston, the to tell -- for this very country don't going going and feel of outside it's significant it's area to But deals right stuff really this days well certainly think of that have

Jim Fish

the -- Kyle damage my a damage because house, had I of to little bit I of wish what I have at of a sense the so. house

Devina Rankin

are when be coming power back. and It'd water to great know

Kyle White

and hope it over. turn I safe is over everyone quickly. you. hope it I I'll Well, Thank

Devina Rankin

you. Thank

Operator

Thank you.

of James. line the from come will question next Your Brown Raymond Tyler from

Your is please. now ahead, line live. Go

Tyler Brown

everyone. morning, good Hey,

Jim Fish

Good Tyler. morning,

Devina Rankin

Tyler. morning, Good

Tyler Brown

Hey, so guidance. It's for all you Devina helpful. the very thank

margin XX how much maybe at math like just guidance margins a on moving XXXX, be? of basis points on math recycling to feeling as think there. XX and my then maybe about maybe you're if expansion I So something quite is in look Can year-over-year I a talk about right. is and might help to in the takes looking for bit dilutive M&A the there's and my My basis going thinking from how expansion around puts is you core

Devina Rankin

Certainly.

business and So right, I spend path in are of then about see that The strong increase and points be to $XX there on about. basis organic known XX that is That and core technology has solid we puts some revenue going EBITDA and the to absolutely but spending the technology are our toward specifically on by talk offset margin XX and we a takes in know dollars. you improving measure a consistently margin The impact that growth impact million – waste also headwinds see ahead. expansion cost XX% level. EBITDA still good year a partially about increased XX-basis-point on intentional very we

the business. we perspective, that's terms expansion things tends margin takes, margin that's the and have In the other for actually traditional margin of see to recycling recycling which offset I from either because say that in isn't would expansion And contributing one the or we the business, brokerage to puts a detraction. MRF of the us

is dilution on return side, from margin. see invested as a improve little we business to see of it a on brokerage growth good for tend operations bit dilutes our us in the business capital we which So the MRF very

finished on in side, basically energy guidance quarter and be the margin that fourth XXXX. renewable XXXX including fourth something based we the strong was On some that we there how the quarter will in our of are and expansion

the a business. see EBITDA that the with basis. from That's upside XX.X% of we to ended to fourth escalate quarter. want if run then WM prices Fourth one continue regard where for RINs And was acquisition, for a rate some we on I potentially to on below moment. ADS their quarter pause XX.X% measurement margin ADS the So there,

reminder some ADS's a As included for share-based its that doesn't EBITDA accretion both take compensation margin adjustments and Management EBITDA measure. in own Waste

levels up that, the So, ADS's continue have in get and strong margin that on on. them XXXX, point XX% And was basis an about we WM apples-to-apples march to XX.X%. then from we'll confidence to

Tyler Brown

burden unclear, million is for helpful. perspective that back. Thank CARES quickly and you I both just that modeling a paid XXXX? well was due Real just or half mentioned the does Extremely you. repay Okay. that the so $XXX from the you for XXXX I'm XXXX, in as think

Devina Rankin

XXXX. That and the burden for XXXX repays

quarters So the the deferring been had second we entire and repaid in QX. third $XXX over million was that

Tyler Brown

margins And there? Okay. resi Awesome. historical a a XXXX talked then that get business they bit past. did you maybe improve that in Thank you we've the happy would to it or a level secondly, long resi you. either John, margins how margin back you do be call as like with? refocused to it And know about level, I In more did. more takes sounds then quite think It

John Morris

XXXX. XXXX. is year back prepared having would as there climb and going in like to year, XXXX. what residential mentioned, that COVID And million would that affects get back how if in we're in start do things to frankly other business work what's improving in things, that to continues the term. have we and recycling with we're remarks you some better tell I the you, about half benefit have for part residential. on I other about of strong what last to we're piece out of in price talked the – is, you weights also to a the big of CPI, we moderate hills, my residential be of I fact going talked years. weights I that's our of part recycling whatever the of get in tell are to half despite business mix generated the Well, would going don't view in In of lost handful vaccines of that's going tell equation while the there being to talk Jim line a the is business still around that yield about to in as $XX not the is moderate going not the to normal. that the of and long hopefully the obviously we to look we've What and And

we you initiative to speak. when there so at those look overcoming weren't other of So we're some started margin headwinds when improvements, that those this

Tyler Brown

I'll That's Okay. turn Thanks, very helpful. over. it guys.

Devina Rankin

Tyler. you, Thank

Operator

you. Thank

Your the Chiang next CIBC. from will of question from Kevin line come

now is Go line please. live. Your ahead

Kevin Chiang

acceleration is an as of to hope your for just question. guess in turning safe taking Maybe everyone my well. of you're one around Thanks the seeing Great. I comments you prepared initiatives had. And some technology

of increase for online of Investor called to a your million I $XXX bunch triple-digit your you I it rate And Day, of in kind laid sales of recall, going was channel, opportunities. think If think initiatives. a example. out earnings kind savings I generate aggregate at you or technology that in

you just in potentially do upside that of through your Is sooner? the through stick potential today the pandemic? customers you pandemic, the to as the the maybe achieve given some here see coming ability behavior bigger Just change

Jim Fish

Yeah.

a literally are But expect really it's huge to So front and collection hard impact and chosen the for that then then us. question, and dispatch, is accelerate relationship billing that I back a you through whether because entire mean, transformation of through we've the a very we end and is would this process. functions, us. And the would at from – to way say the the sooner where us. touching digitalizing bigger customer answer the happen way which for opportunity mean, we it all for set is end the least it, up we're the all I to routing

effort So it's it. thing a don't do like was it right to but accelerate it massive us, the to for

we we we know, thing. whether more necessarily the when thing having the is dependent because that And is that so less it And spend on on how much sense create. about an benefit. bigger accelerating I also that the accelerate Day, that Investor maybe don't we makes when differentiation would the whether dependent on by of talked – that's tell that that I would is some you benefit seems and if that's the digitalized just way form. on game to almost customer the But It choose us hits, an same do that where is do every in well end-to-end shape or as experience company that into get digitalized becoming believe some this dependent QX, in did something that's competitors to anymore. ante would

felt that from was the maybe customers. to of overall We do already do those this And like investments. an we those be. are know a will that, so don't believe little a for right some thing pie, opportunity absolutely gives bigger slice the grab our it us to we And that competitors quantify. is to competitors or make making those that choose particularly away piece harder investments to But

Kevin Chiang

or lot I That's helpful. I a look year. if business you resilience ratio as your you mean, get X.X But to expectations you long-term your three that go -- the maybe challenging to back, just debt around a of the And turning times. comments your take looking guess of the a you're back leverage to to the through outperformed

company capital how suboptimal wondering three structure a your to argument an there's you think maybe Just be in underlying the your times have you resiliency if about for X.X that might and earnings given stream.

how in do context that the in you through think Just like gone of what about XXXX? you've

Devina Rankin

resiliency I strong think and of no is EBITDA a great the and flow the it's global free Waste XXXX question the in there a affirmation doubt face cash of business. in a strength producing Management of that is and that pandemic this did

of said that also position certainly financial look focus than three could that we long-term leverage being is we financial position Waste opportunities. achieve both X.X had historically. strategic considering And our consider for so higher on to arguably times a and establishing Management to through-cycle range it flexibility ratio to That

for we're just why for to term. storm opportunistic speak times strategic a business positioned to but long we think X.X the is so value three And over also to the weather that's so be And the that positioned we to sure creation right to want that level to value grow shareholders. for that be we aren't

Kevin Chiang

I’ll color. you much. Thank you. to turn great over That's it very

Operator

you. Thank

line Stanley. Your Goldstein next question will from come from Morgan the Jeff of

Go ahead live. now is line Your please.

Jeff Goldstein

mentioned and was hauls of sustainability you about but drive to industrial think X% just Hey, the good XX%. that and what morning. overtime to In between XX% that are declined should yards you I how future? your prepared delta? And doing declined curious commercial X%, delta we remarks the in

John Morris

us optimize have able look terms really look more a and then bottomed Well, each by I as really same out week than and and focused QX, in just on in half day you at about declines good doing comes really each And the cut think at day assets. when the that we've when basis. bottomed of sure as just the we QX sure we then of operating out. team you to as to sustainability we've week And been come it's essentially volume is job on fluctuate Jeff while asset back discipline proportionate QX been where each really still overtime. an we've of we of being The and amount making that keep volumes on to to people a maximizing each been it that making holding level maintain able we're and

Jeff Goldstein

your industrial you are core to Okay, more got increases can some across of relative landfill? expect to price or see lockstep, X%, Thanks. and areas the price resi, it. to And then guidance there out growth commercial, you others? XXXX strength thinking parse being expectations relative the Will

John Morris

year we overall think I -- from where think proportionately you business. half bottomed of again you think trend year, I look second the I you QX, of out it lines if look forward the didn't we at the with each line Well, trend to where if the But QX we break business. out follow of those at the the finished into trends of by

post-collection was about So one area script both around at We've transfer commented Jim on pricing in and landfill really and quarter-in the quarter-out. talked that station. his

to of in we've for buckets. the it a progress even bit through the did moderate while show commented us. We continued and And of on I in the out shown strength area even pandemic real residential And those bottom and that. has resiliency a pre-pandemic been pandemic two that focal

comfortable feel at XXXX. So I X% going think into we least with that

Jim Fish

by by It's impacted been why the impacted one impacted it's businesses. thing the challenging small us for like addition industry schools the Jeff, And line been small most It's we so of business hospitality. commercial because also has by to it's that has honestly. that businesses. in

and in Because we're down where think you everything gone haven't are why been we shut it's industry cases about than many have -- an still might this a like this through As of something more is shut in thesis, down. we is investment reopen we like the play past.

a WM up it's whether line on play well whether this shows waste provider reopen that line. a as the other So -- or is is this volume it's any and as the industry pricing

mean But might as that price no Field approach. be is it's because approach businesses go us being our really can't season that and burging they hit business across to from baseball somewhat of during the now soft morally doesn't which price. have who the a you of and Wrigley feel -- volume-related fans. fee-based small street for in sitting are because use some I have there's perceived nothing commercial sophisticated a a is are right and the new the it it's customers line it's We business that but and typically approach, have

understand You we course can't customers business normal price and their prices hit understand that that those they do or when reopens And that. of will also increase understand with that we as fees increases. with we business. They normally

lot impacts obviously, that focus. Residential, that increases of haven't business. line that simply there about doing some taken transfer. quite Other related So we John has gotten are price are and specifically lines of are landfill as well volume that and commercial talked a

feel feel And like loss been pricing. That's reapply. just discipline. there's that we time that really to we're for before it's good we of there's hard-coded proper here. about waiting to -- very the of volume It's some absolutely So no this return

Jeff Goldstein

you. That was Thank helpful. very

Operator

you. Thank

question from Markets. BMO of will Capital Jeff from come next Your line the Silber

live. Your ahead line now please. Go is

Jeff Silber

are what prior quarters if clients and you we I'm Thank on and you of what had should terms year. industrial an percentage rest for coming get have those much. In the can back. we not you status, back, commercial expect customers so wondering the service color some come in percentage just us update think given of of your what

John Morris

around a better than XX% that hovering would were we right And said high time bit Jim of things. Wrigley the you lodging XX% in approaching chat. tell the have reference the hospitality gap we last Field, Jeff, businesses kind Yeah. we're to little probably range. XXs those we in return. there still as I is just travel, really And the mentioned, It's the real those to

we if of that even without think good is at lot performed feel how businesses news very look the I being business small those you So back a confident. online well the

emerge well to that's from -- stronger. margin a our tell think testament at performance half comment, come we're us. Jim I As performed. relative look reopen this said, you specifically very would as to back how as in Jim's also of start really story that And confident about a businesses you this when those the We the -- performs we'll how industry to we reopening to well even I the I is for and think things back, year. feel business for as the

Jeff Silber

That's right. All to great hear. My follow-up question.

the the some pay earlier different. something that. some wages increases the we've Biden regulatory Thanks. you territories, you I when on about wage There's little But your states, from issues on you? talked upward some more able that through to bit of And the some hour. can realize potential are cities, your You I of $XX than to so, an administration. at proposed focus if want customers? pass to probably minimum a of of a for has in pressure minimum federal put that wage seen

Devina Rankin

Yeah.

that we've it's and one been think evaluating. question, I a great it's

we've the many element that a important I of for us is think competitive as most company for a this years. payer been wage

we that something something our where raise wage tide It's on we the wouldn't cost to that effectively And that in have with of certainly been and see are many tide impacts to of so, see rising the -- respects ability if impact our we certainly are wages while consider minimum that of ahead as the instead raising business. wages regard because respond would could we it's structure, a that we the see where something is business that to something our historically. price side that disproportionately

Jeff Silber

so Thanks color. Okay. Appreciate much. the

Operator

Thank you.

Your next question Oppenheimer. Noah of line Kaye will come the from from

line ahead. now Your is live. Go

Noah Kaye

volume pricing questions. have the the sort the in taking that you better comments coming to really fair back. of to One off easier Thanks. CPI open-market it, envision And pick up me are pricing ratable. your the headwind want more a just so pricing relative way in of you on think can that saying how I half, to there you steer that some for first over in XXXX just sounds think ease it year, to Thanks yield the everyone. would pricing back the you half what course like were about more related morning, or the around you Is be the of properly? comps cadence see in be trend pricing and Good bit about previously it's But yield and Jim, the might later considerations half just of of and perhaps, because might half second from the little Hey. the back front will power and a half. year may year.

Jim Fish

Yeah.

it. about think lines to we to of I different way fair mean approaches business. have a that's think I different

So, and transfer focus that gotten landfill commercial had honestly, has the gotten until probably not years ago. two

focused landfill pricing. very transfer been we've So on and

And about John so, quarters. that similarly, we've the been recently on very focused last And probably talked residential. four has for

it's a one businesses. is, established of even returned. up didn't but hate And think but but in haven't sophisticated-based necessarily of mean in states XX% some morning, business. commercial I make our to schools And pricing, think more that I commercial percentage are approach commercial about are think -- is I states this we a that to I mention it I we some this, as schools have small said, we've really schools. and significant customers -- commercial those do

universities. That's schools So a it's when our of difference. And it to XX% customers, part a makes increase schools of a business, part industrial big either sparingly. of returned that's haven't not -- business who returned our as and able and But It's commercial have well. simply business. that's high commercial grade that's you're your or price

schools as that through the think see so the into focus get -- level and the at you'll they schools we at we back the see year. back federal I So and need and so, kids think huge a reopen of state school half and are the get the we level the to fully vaccine that

Noah Kaye

have question longer-term typical I activity, more -- housing acceleration be you up for And XXXX? cycle that XXXX. then may XXXX starts mean talk is very it it And indicators, so? really growth to full Yeah. aligning And to the we you I CPI around one here. a to for higher versus Does look year certainly God-willing looks of in sets right robust would to some reopening a of how the XXXX. the are seem medium-term that business going at want like in that if

Jim Fish

conclusion sure like logical mean a that I seems to this to space really shuttle. me. economy it Yes off ready feels like take like a is

C&D our been And that. volume mean fourth way perspective the was of -- volume indicator. in double-digits seeing quarter, I business a line indications down. C&D in so had up down the of down X.X%. That we're is for Orlando And QX, some from best Probably our

it's and go. me primed that's to that one -- -- So have ready of leading to and that the me is that's pump tells volume are we tell things that terms best starting probably indicators the in of or

Noah Kaye

Yeah. Thanks very much.

Jim Fish

bet. You

Operator

you. Thank

Your come will Baird. David next from the question from line Manthey of

Your line Go please. is now live. ahead

David Manthey

to index as us water contracts. morning. Good Was a current the linked of trash year-end percentage you. the CPI as more update are levels XXXX could municipal hoping your sewer for you fee-for-service Thank on that and recycling contracts well representative targets

John Morris

So what indexed. we've our of somehow is traditionally is said about revenue XX%

price bit here intent, to our I that meet each mentioned we in throughout and my But criteria shown we mention of and progress It's did We've doesn't sure. is these prepared quarter continue reasonable our including to quarters. we're really make our core business not XXXX. expect look if get make sure returns going it margins. shed in residential a calls, yield six comfortable within remarks deploy Devina and number every better to but return capital a at looking little that XXXX. four what we're we as on in the last think that absolutely that. margin where we of and in I've to over I'm done did I to the or and we've at to seven in three metric really XXXX and doing

Jim Fish

for up. percentage I'm to John, Suffice can not to water -- of we has it get trash. say, sewer percentage gone the what sure

bid our to seen representative John, couple are come off -- I get seen exact where these for fact my water we -- But of we've contracts increased percentage sewer that In percentage. of we I've across trash. structure know weren't and the we've the don't a you can some indices that desk won cost where of of them really We you.

John Morris

that circle And we'll Yes. with back number.

David Manthey

highest And XXXX is decrease it work if as cost a to relevant what road in purposes, maybe you overtime with or modeling wild in the that mile in of so, get XXXX? then, the would -- less like would X% just to be the Okay. overtime XXXX? saw kind compare reasonable And something swings more is trends more we for given off

John Morris

come bottomed how really than would half at been this if declines to more and as really QX is it. that back I have To volume come in going XXXX. out out what look barometer go our and that's me in know and commercial percentages What we're we've into we I'd overtime don't I the where back of industrial.

you the little overtime and impressive. to if mid-teens overtime X%, an for will from is X%, still residential volume obvious us volume is for increases been able reasons to perspective, we've different. down X% But a pretty As with declines outpace be

QX. those So XXXX the for to that's in positive we think integration after of OpEx now. getting and I I progressed we in we a better as on how really the customers the the I of think done about think don't the David migrate things benefit confidence into what outlook And peak volume All mentioned XXXX add is gives barometer the us are to from the XXXX. into ADS and know I how here going us in us for decline we've then of add I up side. data us where

David Manthey

you. sense. makes Thank That

Operator

Thank you.

come from the Capital. Sean Eastman Your KeyBanc question of line next from will

live. now ahead please. Your Go line is

Sean Eastman

in just cash mean XXXX. maybe questions. Thanks of cash taking if be of a us off again in rundown But flow quite bridge a of on of moving XXXX of could bridge that kind give we seems free to I kind my great. you essence. free dig kind a would flow parts should and XXXX simple Jim. perspective building parts. in $X.X wanted Hi, just It moving Devina those that the like to for I from billion be the from a number few

Devina Rankin

Yes.

So the start. us $X.X on to billion remark that is place a for good you

have the on outlook biggest for growth a year XX.X% the strong think always ahead XX% I think year-over-year there with contributor a when EBITDA certainly in about basis. being we EBITDA to increase

be In with addition going million to in lower Cash the opposite direction that interest the paid that million. the I company, $XX transaction fact cash in items the that, to $XXX million your $XXX base. we benefit a that taxes expect There estimate is cost those about benefit from will increase to and be mentioned. $X.X from that the about billion two will we

$X.X to costs sure something for want billion. coming that are transaction I So that adjusted be because to to point and ADS we that out the

discussed. resource spent a planning money on increase have that slight will we've the in enterprise the We

that year-over-year basis. a We $XX expect to million on go up

your million. have So gets all $XXX to in operations forecasting to around range $XXX $XXX there got given we're $XX million million. from increase a in to what $XXX million million. million capital We've to all that's of our divestitures then $XXX increase you the proceeds not cash of expenditure And ballpark anything from of traditional significant

Sean Eastman

just sensitivity in on maybe today, XX rough get how of RIN. on the being a maybe today? going of years. for helpful like it'd And next what is prices as some earnings idea significant maybe is this the to in is to business. you an foresee RIN context five this for piece to be there Okay. one EBITDA be a is of driver growing just sounds Super And helpful. me And It to

Jim Fish

it Probably pieces of shot three this But the I then up Yes. after this up. grow this bit think look, and that I sheet. pick of I'll I to mean depends could depends business balance could your our us all at to this first it I outside take a I'll on make a how case own first you think one. choose just question, on we – business. go grow little – a pull you

wanted be within to for blow and going we think really but to And so not kind business our we down have can this that good grow trend long-term gone own out you balance could we you own what our or advantage way path of a take within is are – if sheet. we of a business pricing in RINs do that it

there. haven't everything Obviously we a of capital has decision so made expenditures. grown been our own out date And to

would least be that grown first through for a this do commodities. Devina here But the would XXXX we remarks. and uptrend So for – year and there's long-term capital a I expenditures, probably is anything maybe for prepared that we're mentioned her said at contemplating half as the think entire of as in –

pretty of you is or year mean why We more there. so There's to – why biggest you a the And ebb three earnings our heavy I of you in recycling whether obviously this we're believe our I energy look five whether where it here's with pricing benefits have we where like recycler a that's a see will. RIN business, for regardless disproportionately, number a us, renewable been $X.XX trend. stream, that. look out if at reasons feel at of look commodities, you

the see demand in there for that taking by example, just – of is everybody that we've at we business, houses. their And what we that's driven own pandemic but delivery is if our Amazon for look at increased cardboard so discovered boxes

of excited energy And like price uptrend business a they all So we have exposure look our we prospects of – of commodity these recycling it's that's to whether business. the hope that be is percentage-wise. way that I about coming. the some made XX% John? the business energy our by can't renewable by to that something that of fact we possible is natural that answer helps XX% that. in have fleet also feel why are renewable long looks or our matched to industry gas. And And have that is the businesses fairly

John Morris

But that help we're a things thing think in is Volume only will because driven of is think exemption, going whatever. really of right stability would to clarity RIN buckets past, see Obligation refinery which if RIN I a capital. think that they small some with inform pricing I with there think two it new us going the add and the been we administration, at our And I where are deal or deploy stays which Renewable RVO, two whether The to new there's that's lack administration both stability in more those, $X.XX that. the pricing, see more we'll on the stabilize and own a I have I

Devina Rankin

up the renewable important that wasn't million that XXXX. energy And all to for price-related. note What's $XX business in was EBITDA about is

that Jim we've that investment been making last of intentional Some was years. to over as the mentioned three our four

So of that volume XXXX and million based $XX prices acceleration about And we $XX on provided growth. XXXX where at the a about end see improvement there million of million price XXXX. to EBITDA were was in RINs $XX in

Sean Eastman

guys. Got I’ll Thanks, it. helpful. over. Okay. Very it turn

John Morris

you. Thank

Operator

you. Thank

from Stifel. Your next of will Michael Hoffman question come from the line

Go line now ahead. is Your live.

Michael Hoffman

Thank you're therefore you think long. business it a if here had on housing want this to improve and correctly new trend I you appreciate improvement you favorably. interval and staying you model. in assuming I to It's continues did heard cycle very the service converts upside favorable much touch is I What the your not XQ I – assumption on into that's in stable formations. but just

Devina Rankin

see at perspective, interval I our of how we say the is XX% different industrial. a would that lines look XXXX, We the think what volume half wouldn't way that such service that of the that based some is the of The the volume lot base what the cost of X.X% that quarter I built in guidance -- the do off coming at into around in on level different a I structure that bifurcate of volume that looked or is commercial at can of that took From that is ahead. of specifically we to year. we our back upside business But in XXXX of volume margin contribution is responded just low macro year very Michael guide QX. about second the Clearly growth. for parts

Jim Fish

we behind the have when effects questions -- the we really which pandemic over economy take control to control that ton starts a start this, lot the of Michael feel does that. lessen. answer of have a there's about, I over, of just that's really -- of like much is, because -- don't momentum we the that to don't off? Once We ready the yes. the one That's past to to it earlier get is one volume because this think

off of X.X%? that So it's more if no, this when conservatism I than would but dependent get reopening the yes a largely in that -- to you this comps. will once your the there I said as this probably answer we volume on take I tell absolutely question, it. is is about logical it economy conclusion believe earlier to past forecast that's that is But ready is be question likely,

Michael Hoffman

is formation getting where was start $X.X the business history is drives We're been here at empty formation. household point change million I storefront backfilled. some yes it's gets and the Right. At five more for years. new And to than that's $XXX,XXX

Jim Fish

right. That's

Michael Hoffman

dry a needed cleaner. You

that's drugstore to was service box about growth. what think way it. another And that's or need you. That and a have the interval You

Jim Fish

Michael. That's right Yes.

Michael Hoffman

here sustained you settle barely nice half. Just year a trend lower and you negative clear, the to could ended on in have XQ how just based I but the flat. be actually thinking correctly in be second the cadence-wise, and volume then on pop cadence like into Am then it It's about looks a there?

Jim Fish

can the certainly math I do and Michael, get there.

the news that weeks good I front. the we've by earlier in But lull volume December. been is on first late saw through and encouraged six-or-so what mentioned November seen the we as think I

terms But QX not trend. Now six weeks to anyway relative and the does question through volume. feel we your optimistic of to first a six make pretty in weeks

Michael Hoffman

be eight. waterfall Okay. I And recycling the In four a on a about It try XX to two the free mentioned like different three, two EBITDA rounding year could at get XX. incremental. the tack things And looks would cash. on guided you four if Devina you and Advanced John I'm

there right about on to EBITDA the waste. XX to thought sort RINs. three XXX leaves Have correctly I to eight? That coming XX go the four four of mentioned solid the zone like from You me in that from in pieces

Devina Rankin

of little have expectations north what you the just for So we a ADS projected. business

have earlier not that increase the part I million have cost We that we bridge. headwinds mentioned. your I technology that then mentioned $XX is And known in of the

incentive think specifically to management and costs can being those of So million aggregate. health Those are related you in about the welfare $XXX compensation. and costs risk

So what those bridge are in you the pieces addition of outlined. the to

Michael Hoffman

asked free I'm about Okay. trying flow question just the one. was And earlier piece then the together to that cash

So because paid started $X.XXX the Act billion it CARES you you'd like back. seems at

$XXX gone. like and actually But to it's ERP. million that's cash million of year-over-year So net. the two got you're That's closer to going about $XXX-and-some you've the roughly And absolute $XXX is because three. million -- tax

I'm $XXX I pieces ERP. So about offset improvement really I -- did and -- together is tax gross a then looking I'm pull cash by some those issues million -- right? Like get did and of a that at sort

Devina Rankin

Yes. Yes you did.

Michael Hoffman

Okay.

and potential another million IT wants am your through I $X I the know brings $XXX to So find million all has is ask And the that is billion. baseline $XXX want last to time, I you lens for and do is $XX I what looking this to one free you Eventually just the in million. correctly your self-help ADS own on to I working million. $XXX think opportunities capital million. are $XXX cash

to million X% cash. I X% And all if self-help, $XXX to happen the need in annual baseline million years I in can I you to anything it a that the am couple correctly? that introduced of even of growth through to get I there's before all get something a of So Am $XXX macro. thinking upside. don't That's I do. might take recurring this

Devina Rankin

that same Yes. additions effect. mentioned on to with working clarify I technology That's would you we've place. the cash you The but free and The only flow. we're just the ADS did, I would item thing I only cash otherwise tax agree other flow what you that capital free have so directly that in XXX% -- the think

Jim Fish

it do don't a not reemergence. mean, sure which that grows but Michael pace into your of, at I'm faster that's normal of because how of haven't much XXXX math I then put of And We I believe factored than that's into kind question real. there we an economy economy is is first very there, just in this yet. the how know much your

Michael Hoffman

five six what Yes. it's it rate if baseline just your a -- eight. takes to Well that growth me think. to turns of I six into That's

Jim Fish

Yes. Right. Yes.

Michael Hoffman

business that your it's a and leverage, you just the love you about And us about think influences camp to lastly that how you inflation model? would pricing can in talk inflation I I'm helps but positive. talk that?

Jim Fish

I say, are would point. guess, at mechanisms. we good not our yes, mean, I inflation, get it's I'm your -- passing it sure pricing I I love but I through

so quite our transfer bit station. of at started And two at result, landfills best example And probably a on that while the -- been landfills we cost inflation we've and on the and the where as the landfill of pricing better for years. look maybe get we've seen has to side a

a lasts low So time. we don't lifetime. I quite know for inflation that that extraordinarily do long for been expect a that has

side. So it a pricing job -- inflation And we then and some that programs. passed of through on certainly through up making will do see to the I gets margin but will sure back think we tick add commodity good

Devina Rankin

and about drive the organization road to the leverage as I'd team technology every processes, be execution there's we to more add is efficient talked we've John better thing see as on back-office optimize with day. that that the to the And on

tremendous So operating us helps SG&A we've and to combat leverage inflation. seen that

And in things an inflationary those so us environment give as leverage well.

Michael Hoffman

spread Right. incremental inflation growth. and and inflation your your expansion leverage to margin just That price drives then internal cash the offsets free flow incremental, cost on

Devina Rankin

Absolutely.

Michael Hoffman

very much Okay. All there taking right. my [Indiscernible] Thank questions. And you for I is hope down everybody safe weather.

Devina Rankin

Thanks, Michael.

John Morris

Thanks, Michael.

Operator

Thank you.

Michael America. line the Bank question from Your of come of Feniger will next from

now live. line ahead Your is please. Go

Michael Feniger

appreciate years? guys. is lawsuits. chemical, keep just investments status and around you're sites, the a the of that just in liabilities few any Hamzah's would the for looking and regulation been it for Jim sway EPA on, an following you your Hey way, of for Is there in. what obviously and Thanks last for of eye things lot certain or super headlines guys or squeezing that kind there's a designation around have of should me terms specifically there we the and or it. doing out up PFAS quo question, question direction and new fund I

Jim Fish

a is -- that game. it's still not -- standpoint. don't have think, so we bit Michael, that I PFAS strategy early lobbying little that Yeah. of a around probably sure We but from it's a discussion a There's -- in not lot I'm cost it's as team people I that, a at about have I D.C. But in PFAS at us. opportunity at as looking an for say main guess that thing is some closely. this it do are it a would while the looking looking we're

the at I might back which a result us? think as as And I part if it affect through goes opportunity, the it administration something we changes be opposed PFAS, how think your EPA to potentially is, think, why of environmentally impact a it to of that's and new actually to cost. a we're positive premise it does looking as an of original and just that has question,

John Morris

soil. That's that, the technology right look end. landfills, place for PFAS being Jim, And resides, back I you one solution regularly. is the this think if at And perfect the example, as where our gave a a we with contaminated on about

Jim Fish

right. Absolutely

Michael Feniger

expected. The Jim, the just Yeah. good to integration mean I is That your lastly, was view process longer than I And big-picture certainly helpful. was on really That's color. underway. just anyone approval get love ADS M&A.

sizable your outsized of year of are peers another expecting tuck-ins. Some

M&A, few Management played traditional out at Are I'm just Thanks. markets of much for new now. we Waste in guys last with to Just so shifting to find waste years? if consolidation into long-term kind grow outside you wondering underway with right shifts. the what's of

Jim Fish

the Part I because of I I with what waste XXX% solid it it. reason it and just -- of both this guess, you role. is certainty acquisitions, space big one part I number guess tell mean, a any the I complex long in ADS that's COVID-related. I was We're more four. as we're complexity a played where doing of companies transaction space possible. was was not mean, a as can it took that did was number in major the

be was a a there work lot with lot So, done complexity. was to of of DOJ. There

$XXX North And that, do so at least I We'll in acquisition really don't come million think WM would to Devina's where large another expect point we in is tuck-ins. we'll America. year. And solid do waste this about,

what beyond just So I strategy as really do think think And for And acquisitions we chosen of going integrated been as well to then right the we all think about is can far we've our now continue out, feel to years then, focus like M&A ADS. integration once what that's to XXXX, XXXX. comfortable tuck-ins. do look on the I that start in

Operator

you. Thank

question Stephanie next come of the will from JPMorgan. Your Yee from line

live. line please. now Your Go is ahead,

Stephanie Yee

ask morning. algorithm. kind or I Good growth a wanted to just of about, question Hi. medium-term longer your

five-some And that ADS Day early if it's being has about percent that could growth. too think yield this Investor tell EBITDA I maybe I or wondering, your to if laid had or COVID that of about changed So, X%. at average be algorithm, growth at point? volume out X%, drives was you

Devina Rankin

technology you, the that tell would of some acceleration I that we time the we've of point. that expect spends talked rate, early returns And tell Investor this to XXXX. is to bit that for kind that technology and of accelerate one EBITDA thing out, had at of an pressure of everything the downside the that spend. a has as laid But did Yeah. provide us The we at coming on about. one we the it's from of too we things mentioned, soon put growth in little Day as acceleration was

John Morris

add about, how and they They when very would and were of us think is bought declines. ADS, in terms through volume suffering you were we the to similar when Devina QX. I only that, QX

we of a story ADS in as that. of us now talked the in about, out obviously same So lift think getting tucked business being some business, traditional and reopening there's Jim the leverage reopening

Devina Rankin

point. Good

Stephanie Yee

that Great. Thanks okay. color. Okay, for

John Morris

Stephanie. Thanks,

Operator

the at this presenters, seeing phone line Thank time. any further from as And I'm you. not questions

continue can ahead You please. and go

Jim Fish

honestly, homes, like the bit. and of of it and felt that going big, sure have my for a in this to thank percentage there of Okay. all us in state faced two year been Texas challenges way of about look, house and week. I includes, the that just this cetera. what's to we've be without all course here mean, Thanks. Harvey power, so many including but of needed part a little by -- honestly, that et And Hurricane big A water that lot Not damage wrap-up it was. without today, on way to you those own your comments, it for

positive it that difficult spirit -- alive at other times. is these coming the each personal of we lives, And and tells take we in me so, out well. or the care I of our WM and is during human that We guess it

us call, all so, of the XX,XXX We'll quarter. -- our talk to you joining on all this you for And do of you and thank to And you next every teammates, all each thanks that's morning. for day. to

Operator

you Thank you, conference. today's This sir. And concludes participating. Thank so again, everyone presenters. you thank much for

may day. now safe. Stay disconnect. You have And a lovely

Waste Management (WM) 18 Feb 212020 Q4 Earnings call transcript