Waste Management (WM) 1 Feb 232022 Q4 Earnings call transcript

Company Profile

Participants

Ed Egl	Senior Director of Investor Relations
Jim Fish	President & Chief Executive Officer
John Morris	Executive Vice President & Chief Operating Officer
Devina Rankin	Executive Vice President & Chief Financial Officer
Tara Hemmer	Senior Vice President and Chief Sustainability Officer
Jerry Revich	Goldman Sachs
Toni Kaplan	Morgan Stanley
Tyler Brown	Raymond James
Noah Kaye	Oppenheimer
Bryan Burgmeier	Citi
Kevin Chiang	CIBC
Walter Spracklin	RBC Capital Markets
Sean Eastman	KeyBanc
Michael Hoffman	Stifel
Michael Feniger	Bank of America
Stephanie Moore	Jefferies
Stephanie Yee	JPMorgan
Devin Dodge	BMO Capital Markets

Call transcript

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Operator

Good day and thank you for standing by. Welcome to the WM Fourth Quarter 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded.

to Ed conference Investor Egl, like speaker to Relations. now at today Senior would hand over the your I Director of

Ed Egl

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

comments, and financials. will the prepared cover cover update, their an Jim a will of details During will cover financials John Devina the provide high-level operating and overview, strategic

Jim, Devina Following will comments, be questions. John, Tara and available answer to

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

energy multi-year The it presentation release about information. In investments schedules X-K the in addition, the additional our wm.com. on website with we and renewable the release, press press information X-K, recycling and of presentation Form have our include a at for plan also the supplemental available and investors. businesses, Form important our published our supplemental is and

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

recent in XX-K. and discussed the in uncertainties today's risks including filings these are SEC, Form release of most press with Some our our and

yield volume. references or otherwise the which to stated, specifically areas more discuss of or in from yield unless John Growth, will Internal IRG, Revenue volume, our are results and

with is operations fourth Jim, quarter operating XXXX. be EBITDA, call, depreciation amortization. unless of will otherwise income will discuss and the John Devina comparisons, Any During the from stated, before and which

our fundamental and believes income, excluding business by been reflect results of results that do certain to management items and or operating EBITDA have expense operation. Net enhance not EPS, SG&A margin adjusted comparability performance

to measures for press on addition and flow, measures of which cash our refer most tables, reconciliations the earnings to about measures www.wm.com measures. non-GAAP Please website information non-GAAP projections. found and the additional to adjusted These GAAP release comparable at be in and free use the company's are non-GAAP can

or being provided will This and call call a XXXX, available occurring on redistribution, Any a no of replay longer day retransmission today. at is hear this PM hours approximately during is expressed prohibited. call may recorded in form Eastern written XX any replay. call, the X:XX be access a be which rebroadcast WM today's February consent time is website Time-sensitive X, the To information of the the investors.wm.com. of WM of accurate beginning at without Time

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

Jim Fish

million for successful all you commodity wouldn't us. thank I X.X% and Ed, that very recycling fourth another was the down Thanks, at XXXX for predicted adjusted have all for the grow drop WM. an EBITDA and on than quarter, was by sharp year Coming operating into $XX X.X% more while in year, the for would a joining XXXX, year uncertain we prices.

labor million. of happened. elevated full growth price the downturn what our EBITDA a in year commitment market, to market. recycled adjusted exactly priorities strategic tremendous a That's led of growth operational the face an to commodity in and execution and our Strong $XXX operating achieved unwavering inflation, We tight this

So, of we're results. our very proud

us $X.X $X.X to translated EBITDA operations more operating our to which share repurchases. through more billion than robust return of allowed from shareholders billion, cash Our dividends record into than and

while people, through growth, meet technology our up are leveraging the needs our our long-term advantages. is business focus our off, transforming our sustainable XXXX competitive to of we're changing environment, business setting customers, kicks our As automation confident and that on us and

Turning outlook XXXX. to our high-level for

expect of EBITDA $X.XXX and robust at representing over billion deliver the in delivered we've the $X.XXX X% We year growth growth adjusted that XXXX. ahead, of billion the between just operating trend since operating of midpoint, to EBITDA which continues

we've we've a revenue customer time our at the XXXX diverse operating of grown service, in year in when uncertain, is strong EBITDA essential anticipating recurring of deliberate The growth our to outlook growth almost XX%. uncertainty. steps be times to of comes stability the revenue costs. pleased Much then, XXXX. grow and earnings Since in base, efficiently and that streams another of from already provide taken outlook And increasingly manage economic our economic we're nature

XX Overall, between the business. year our operating in collection driven by ahead, of basis EBITDA disposal adjusted points and XX we're anticipating margin expansion and

Moving investment. our now sustainability growth to

overview abbreviated our was an afford you a give to me in posted the energy of that business that supplemental renewable investment Investors is opportunity our deck website. Let mass. The we couldn't unique simply to

to the required aware been all gas XXXXs, B quality XXXXs passage in You're systems. that has the since air landfill the regulations of and collection install and associated subtitle

been collecting of gas, electricity, inevitable we our for day, of resource, an increasing value that's the are to Fast gas stream the which forward it a we've Historically, byproduct with into gas renewable converting of us. present landfills. most landfill landfill an earnings much provides designated as

and better gas a quo. a status outcome taking projected three-year far from These into machine RNG environmental produced plants a it the than naturally cash-generating landfill are converting that's with and payback simply the

returns virtue XX% far those vehicles. our represents which routed And of fleet, of our today our of our surpass by CNG competition

capture we're result, and As to extremely loop regulatory positioned close valuable credits. RIN the better a

time, that suffice strong investments business. flow cash energy details to amplify same and the creation as provides renewable presentation will value EBITDA on Inflation But our a the enacted At WM's release of growth. supplemental it to operating we and benefits projections this press positive the to The Reduction for view Act shareholders. say, and credits for earnings the very recently the provide served tax

down generating or outcomes by path three landfill good, owning this have are good We earnings We're fleet and number recycling renewable resulting provided of to value and presentation facilities, our supplemental we website. flows. of increase the the energy also details and renewable CNG heading opportunity, gas for planned on the great our possible a from through the advancing attractive really Internally, maximizing said investments our we're And and cash have options our portfolio. there more new energy RINs benefits the in great. tax

expect growth. existing a Our improved dependence benefits; commands positions. by new material improved reduce portfolio attrition XXXX, to through product premium key of fourth In labor projects XXX our reduce another quality and MRFs per recovery and the us ton financial labor to automate by plants in costs, have quarter, costs build at facilities that to three price enabled labor capacity XX%. XXX automation positions And single-stream in we these automated of The XXXX. reduced

a about the in and automated from of new XX% By increase XXXX, facilities end markets. our we're processing capacity anticipating

energy even We to our renewable will virtual for host recycling insight plans. a information provide and more on April into session Xth growth investors

plans businesses. through in growth Devina but our to to and shareholders our capital priorities, XXXX I ability to all repurchases detail, will projects, allocate discuss and of emphasize these continue in our capital our returning allocation more accretive to including dividends confidence high-return acquiring sustainability share cash in want to investing

energy, we another fantastic XXXX I drive our plans thank on want and progress as automation growth. continue operating our team year. We to recycling to WM to closing, forward and look in execute entire In for the renewable to investments

over results. call our the turn now John to to operational discuss I'll

John Morris

business good disposal Jim results our our and In pressures, our and collection face fantastic of delivered Thanks, cost in EBITDA everyone. the all Jim, and year. inflationary that business. morning, and collection of begins adjusted XXXX some for highest described in full disposal with the the double-digit

differentiating results and growth grew right XX in for more the decisions. as expanded automation that sets we're conviction XXXX collection more service our XX% offerings and quarter, operating the adjusted During the the in basis impressive were and and strengthens continued fourth in people making are investments disposal momentum even our This than margin stage points. our EBITDA in

growth The X.X% year of statement core revenue and was at and business starts robust X.X% the of and organic disposal growth. with X.X%. collection price collection top with our Full the income volume in of yield disposal

our high our record with price XX.X% to in revenue pace teams keep of business. by our work management XXXX line of led As in decades one lines commercial we core in of every inflation, delivered business,

focus about lines generating on residential in and X.X% of business, line delivered often at we of and core at stations. XXXX, appropriate returns our post-collection business. price in X.X% in landfills the our residential our And talk We X.X% transfer our of

demonstrate that our the receptivity metrics revenue favorable Our fourth remained our pricing quarter. through customers' to

value. business for pricing full business. while the XXX Our new in while increased X% discipline clearly focus was year, customer to on line through maintaining of manage momentum, rollback our cost points our more ability commercial our pressures demonstrate The than pricing percentage lifetime results basis continued and better almost

core X.X%. expected X% disciplined our XXXX XXXX, into strong X.X% of price combined the and between are move programs we deliver and approaching yield from with As pricing momentum to with

strong price is for Our rollover XXXX expectation performance. of

Given by the margin the fees in operating pricing to remain outpaces our that acute we again XXXX, level. inflationary we increased inflation, to the at in cost is environment don't same committed that expansion XXXX. securing up step expect anticipating We which certain demonstrated that EBITDA we're

and volumes C&D event-driven special with volumes. double fourth waste the to In volumes strong remained growing Shifting quarter, digits.

positive and the full for commercial were year. industrial Our volumes

However, fourth we saw in the some softening quarter.

recent expectations are in trends, volume these we year ahead. our the tempering Given

that XXXX. are includes guidance with disposal Our and volumes XXXX collection relatively flat

remain we of on easing the in rate our volumes. focused and We down operating continue labor to changing flexing managing costs the costs, business, and see expenses our down with flexing increases

our Turnover These improved our that still in the are in by as improvements investments inflationary margin easing. are fourth repair basis costs. are as we and and higher trends in operating and disposal are wage maintenance on making costs labor business, despite XX results pressures improving were points in are In – automation we quarter our the expense benefits. collection stubbornly saw quarter display fourth showing we improvements seeing

by from operating XX but was partially This risk a that For the by and driven lower percentage the higher disposal of commodity expenses XX costs. prices and XXXX, offset year of was by basis management related our increase recycling that labor improved together impacts benefits as collection in costs revenue, and points. points negative basis largely and full fuel measure increased business impacted costs

the XX cost you year, of quarter Putting improvements expense XXXX. for operating percentage progress our containment, a those it full beginning XX between with we as improve basis to all efforts expect XXXX in together, our revenue of when points second the pricing with on and combine

$XX positive with the quarter, decline commodity remained In the operating our recycling even about EBITDA in prices fourth solidly to per ton. sharp

have in this than higher Over XXXX, clearly to This When in several commodity anticipating be XXXX. model started to generate we we model changes. XXXX commodity shift has to reduced XXXX market outlook, and the years, steps demonstrates fee-for-service are about in our a expected the XX% journey that environment. were yet last business we that XX% business to profitable returns intentionally our is what prices solid taken our any than higher is economic EBITDA operating in sensitivity

recycling, As to remain achieve we profitability. of on quality better the MRF across process of have the look enhancing we our we lower advancing proven while material, can future which network, cost focused automation recycling

Our ahead. focusing The on improving thank in to entire employees team in that delivered an continue I and results commitment I customer done will and providing the the our want their this year operations. the has to while XXXX, for team best exceptional strong job, know WM service

turn XXXX the discuss and outlook our XXXX Devina results to financial detail. in now further over I'll to call financial

Devina Rankin

capping of WM's our center good waste at a strong Once great off and solid XXXX. again, morning. John, business Thanks, results, the quarterly was

Our revenue value cost in churn, customer diligent inflation, all a price team resulting while record leveraging and with offset core minimize service to strong prioritizing lifetime on to organic yield. customer customer focus high delivered growth

these control, delivered margin expansion point basis XX efforts cost the strong with combined EBITDA in of an quarter. operating When fourth

results we while that WM achieved come. for benefit technology these sustainability in years and Importantly, excellent will to growth investing

a SG&A positions improvement adjusted revenue, more as basis through operational point year process Full enabled than us improvement over that XXXX back-office of we XX attrition. XXX was standardization achieved and efficiencies through X.X% reduce to

increase X.X% accelerate to year-end, performance operations spending to we strong investments in cash record billion. the XXXX, flow The cash which end of can at our brought expectations. allowed us high to in $X.XXX full and see grew achieved from You which clearly our year the capital that

with flow related and the recycling $XXX the billion billion that $X.XXX XXXX $XXX totaled our normal to of capital in million increase these cash $X.XXX and growth expenditures capital to businesses. Putting support taxes million. despite pieces energy business of related billion of cash course the together, free to renewable remaining $X.XX strategic an XXXX was

our and returned billion of stock. billion During a to XXXX, record we paying billion $X.XX shareholders, in $X.XX repurchasing $X.X dividends

and achieving waste of recycling on we ratio $XXX to addition, traditional while acquisitions accelerating and In sustainability grow times. of growth We about our investments our targeted million business. X.XX all and spent accomplished leverage solid our this

acquisitions. sheet in Our well-positioned is for business through investments capital strategic balance our or growth

Moving to financial outlook. XXXX our

approaching mentioned, As X.X% John we anticipate organic yield. growth from

strong expectation sales and plan than When growth revenue on of optimization of revenue $X.XXX XXXX. basis XX and more an total operating organic a cost to Given and commodity and fuel in from to expect we our we growth a from a control between little XX to anticipate X% recycled deliver in combining adjusted focus billion operating growth to revenue points with revenue decrease to X% for EBITDA acquisitions, of leverage, generate $X.XXX X.X%. billion contributions drive surcharges,

be year the billion peak $X.X to XXXX to investments to renewable in year business. expected investment capital each for coming expect in gas We recycling the is and natural projects growth and allocate

investments reduce our an investments and as will business. of measure free as acquisition reported complement view as a are dollar return flow. component as capital therefore, of even strong We these to While higher growth existing better a our they traditional cash expenditures, our these than produce

and our to growth impact between $X normal is $X.X billion, to between cash free flow in sustainability billion XXXX. support is projected the And including expected billion business be and investments. $X.X Our capital to course billion of $X.X be

anticipates timing incentive in $XX million taxes outlook and $XXX Our million and of about compensation an large to cash part capital headwind working the in payments. interest amount million from of $XXX due and to increase an

allocate our of capital high-return and in priorities, recycling up step to including our cash cash remain projects, to growth we investment as even we energy positioned renewable discussed, our Jim among well our returning As shareholders. all allocation

Directors billion increase we about of payments XXXX the intended dividend Board ahead. $X.X the year in rate, X.X% dividend to the in Given expect total

to repurchase share up Board authorization expect We XXXX, our our $X.X as billion to continue in to recently stock. the repurchase also program provided of

opportunistic acquisition we price. in continue right right will our growth, at be to While the guidance does the specifically not deals include pursuing

the success. In closing, ahead to in team XXXX, future opportunities I that we and are all want contributions achieved proud our thank our about members their excited to of we hard-working of for what lay XXXX and we're years. for

Josh, that, With open the let's questions. line for

Operator

question first Revich Goldman Our Instructions] [Operator you. comes Jerry from Thank Sachs. with

Your proceed. may

Jerry Revich

hi. morning, Yes, Good everyone.

Devina Rankin

morning. Good

Jerry Revich

target about be remain guidance. take. to should wondering, I'm recycled yield tough potential year if million as we're the morning That of here you takes seen If in And the talk past the scenario, around about couple just over we XX about commodity years? drag the could about or be the the we've think thinking EBITDA, I'm that to if over the yield higher puts that's year. above laying over for we and prices should X.X% give a $ as move that the this out number wondering

Jim Fish

year. obviously, and Jerry, of overall. the the table tackle Recycling, recycling, yield let off me first touch end question first the at there the on then on fell I'll

had still it And China the even customer policy when market. COVID destabilize big though we affect about of their they isn't a market, do ours of think with a lot particularly think anymore, zero to the OCC. itself, overall I China certainly

as they've to reopened, I we've there. some think stabilization started see

to will So December, that of think continue it starting with optimistic why It help, for in bit albeit and and should we year up a a climb, up climb in where climb that's are was in back back bit did to we the 'XX not up. part more pricing XXXX. to it

moderated, what margin. a would for and it kind to exactly And really cost, with cover felt that It's that the we we no points yield question a in winter. it be hope start what thought And put fistfight year. is, we was able that's we're XX said to last when said we like we happening. yield inflation yield in last would of terms do exactly do. it not in use your but To months doing is the also on yield costs, what's doing we which that few of board X.X%, and only about to I general would exactly what

right number is double to think year the So, X.X% absolutely last We're yield direction. yield digits. mean, were of customers. sensitive I we numbers our some that

to inflation comes range. increases expect I X.X%, when don't And at X%, back take XX.X% to down the commercial

the actually think we're with our we're a the are line. I with the to costs fact and starting pleased moderate can projection, of and So actually apply pleased bit that yield to we little margin

Jerry Revich

points the point, the closer you're going the over that get up cadence. year-over-year just exiting quarter, and margin Super. it momentum course you to that in on given the And seasonality the to of looks basis with Can maybe year the fourth to Jim, early just and last that for expansion to you're expand into cadence maybe be could that continue XXX like comment margins on XXXX? targeting just XXXX, given margin year the whether

Devina Rankin

Jerry, provided you midpoint XX of of we margin that the the is points that the the how in that margin we're continue saw ahead, overview at indicates in it back Yes, basis expansion for XXXX. that I think that year on is of terms into confidence half looking that spot momentum should XXXX our at

continue of from of the in recycling first pressure business We to expect some the part margin half. the the

responding being we on of terms the manage to looking team doing And it what on what inflation in management are just QX. help our as laser that execution, of solid the business should we That waste some in we of did part to seeing focused at side strong appropriately. of not are that So in cost to do the being as but offset and proactive can we're business. really cost a fundamentals that's said, the they it

truck now and in should and where And relief that started repair in us trends costs. give some delivery both XXXX, maintenance truck and to rental relative we are favorable

we strong and that XXXX. showing Our to in benefits, efforts retention are frontline continue expect really

We're which automate to down improving customer fees, SG&A processes, our the particularly experiences we're cost the to professional front, And is also SG&A. on technology serve. managing in our then our leveraging reducing and

all complement terms the current and the yield kind the XXX So points rate target our on that of of expansion basis of that just confidence cost gives delivering side XXXX run the with exiting spoke right margin that execution will strong it's above of that equation this us. like that in feels Jim us for to

Jerry Revich

I were you gas update I Can an the in, us of on or Offtake us Devina. the where landfill really pricing Super, in. the A the team, I'm can quarter point Henry And market more on just one given can just and wondering, were Agreements one-third Thank give just update stands give you ago, appreciate an if Thank you. in pullback sneak Agreements. at come Tara you gas. on done. and today the in Offtakes your disclosures. you. is Hub still that whether that's in XXs Offtake

Devina Rankin

Yes.

in I here look pretty at took back our this of looking XXXX, early about we're of be really Jerry, intentional at we in our into tap fixed. those XX% R&D, to XXXX, and So in were the how and think ramp were is we voluntary we markets. at important a at XX%, what's volume to to note Offtake in thinking through projecting XXXX And

robust. them markets today, those So quite we're be seeing

price we're what We'll it April at users. If as fuel you on great industrial not think like end public detail looks a This way the for and in moment. them is and a back longer give more to any a low-carbon into tap about well. term bit seeing large utilities

Jerry Revich

Super. Thank you.

Operator

moment One you. Thank questions. for

Our with Morgan question Kaplan Stanley. comes from Toni next

proceed. may You

Toni Kaplan

energy. for supplemental in Thanks I you seems XXXX to decided about maybe as out you talked Thanks so and But investment. the even elevated on for renewable an to it year much. previously accelerate know start details like presentation. it the more. expand had all Wanted

this So, year? cadence will just what this why of M&A -- this Thanks. investment versus the time? of the that I just is the right mean year during And last guess be sort maybe -- And maybe lower year. does

Jim Fish

opportunity as reason $XXX so coming prepared is accelerate really your to guidance result is in simply million, range. give of it point just really the waste we've of said gas But but Air that's some of is didn't mentioned mean kind itself. likely be that our it we've million solid We M&A. to the this going us to business. a I Quality to to Regulations This and I part that on anyway. my Subtitle decided it's in V Historically, $XXX remarks, of

About three and half last, at over we been monetizing the years, not still of XX kind multiple might that look monetizing of effectively of instead monetized when you pay that we're paying but acquisition, would we're amount that, which of know, gas XX I that to kind deck, times what a certainly we the full but for be left times. has eight don't you half are have an

we're we've why that's so So, numbers. well Right these conservative good very those. about now, we're at modeled feeling And above it.

those itself an designation So, add this of if electric about can don't already I with up to renewable. have out facilities go In just even generating present the the opening think The opportunity facilities electricity. and started we now there. capital through have to we as themselves opportunity markets which being gas cases, into Tara

Tara Hemmer

is said would And fact investments you a to for the the that only really see Jim credits the with tax thing really our there's modeled investment in credit which positive about that, is us other acceleration what are about some and deck. we that. pathway We've tax ability to to those a strong associated The $XXX capture regarding the million, just add of our and feel where investment I we in on the timeline credits. get tax

that's options our for today. earnings is Regarding because And We after to mean, numbers pathway, stream our projects. why then with gas our incremental preserved you so announced [ph] the capital, with We the not opportunity legacy own can no look that landfill so come pipeline because of if whole we a portfolio, in I e-RINs projects. create WM XX we projects, can own an this and that. reasons electricity this the at we one great our gas. being about we many talk broader There's

long-term. upside So, that's

we're us about So, have in we optimistic front really what here. of

Jim Fish

the here maybe mention the did fuel is fleet it to burn one again. and before differentiates one mean CNG you RIN that and a monetize that and point that from XX% earnings or RINs can CNG, a gas having works competition, quarters might we is fleet. be that to That don't XX% XX% competition that simply I'll have our fleet the way our there, us And natural CNG that at have stream is I the have stream it potential mention that I -- potential our is of to do. they who us last three gives you at least don't also, but same

Toni Kaplan

about I volume. to wanted And Super. ask

in remainder You implied quickly quarter. the industrial the in the the the cetera? it mentioned softer bit you're was -- and the the like just how a how whole business in in expecting magnitude, the it in if more of little softening early quarter color fourth or volumes there, any throughout Maybe guide? commercial et Thanks. quarter, And

Jim Fish

in few a the was moving QX. for volume There that were parts down slightly

it of residential by Some specifically. design, was

Some going it the And of is that some in of our the contracts roll-off softness then, showing national be business couple lost line in and was it accounts commercial business. maybe of group. of was to in line of a up typically

cleanup the front, the be a volume some that there, at from that morning, C&D, it this sign actually although when particularly might QX any there's good hurricane on coming January. and is in we for Florida. numbers our better if looked January C&D news guess, positive they than But was MSW just of I were

with even to X.X%. we a a positive negative X.X% that So that, felt

was there factors So that slowdown, leaves the I few at as a guess, last look discussed the volume been flat And that economy mean, a housing for that's -- housing concerning slowdown. the and are there; I with we as tea widely sure. mentioned, appropriate. year, out are John for

volume that a very to almost been the bit. to and strong waste C&D good continues point come be has there. with and We continues slowdown. pipeline Special housing be C&D us will our While It think the has back to is good for a good.

now inflation it's or eaten in But because whether the affect think and saving I XXXX consumer. slowdown has zero, think the whether think you consumers That's as the going about, about you to almost savings. at to X% that up housing down

for and is But this It's it's the strategy really aspect. built built the around news strategy, controls, building out our built that built around not us around volume good pricing. is it's sustainability cost around

with of And we're the pleased on in end EBITDA come at able at XXXX. top to being so, the range for X%

Toni Kaplan

Fantastic. you. Thank

Operator

Thank you. questions. One for moment

Our comes James. Tyler Brown with from Raymond next question

You may proceed.

Tyler Brown

Hey, good morning, guys.

Jim Fish

morning. Good

Devina Rankin

Good morning.

Tyler Brown

Hey, supplemental it. of kind Thank you to get the Jim. deck. But the of to want heart I for do

between and was idea in the my now recycling, if here is think, $XXX contribution So that the right? XXXX I RNG that upsized, and math right, million, to maybe be it's expected is is that

Devina Rankin

correct. That's

Jim Fish

Yes.

Tyler Brown

that is in how Okay. I'm I But because labor of midst by that probably in well? make sure not you're recycling. But EBITDA XXXX from you double that counting, also the a of some are much as automation expecting effort. And additional just want effort to

Jim Fish

the there I $XXX piece the is is So number, automate that bit recycling the bit there when of in was but... the think, we in in deck, a -- million, of the a

Devina Rankin

Yes, on… deck million the in there's $XX

Jim Fish

positions are are in that But areas where that deck at automating all, to other there really that away and or we're do captured have not recycling. with nothing RNG

Tyler Brown

Yes. That's Can that quantify piece? you my point.

Devina Rankin

margin example of benefits. of a part that. But that in piece Tyler, really that gotten due that our recycling for starting strong early is to would a impact recycling the of headcount of some we're line And attrition in of to XXXX Yes, in is back we're experience, XXXX that. to the the emphasizing that to us SG&A beyond specifically predict and XXX seeing it's you of outlook office business, is is that What customer beyond. in some see we've tell large the too I leverage I success. to we're mentioned

of basis really points margin expansion to the is solid waste. So XX all XX

strong collection And of in indicator in start an so optimization come performance that hold. in XXXX business see, think value to particular we as line is that take will of efforts we the future

as the line those deliveries in and truck well of business because in efforts intentionally, that seeing We of take across of delayed is to as some business. lines of pilots. started of our that strong success industrial of Some additional some we're

happy are, we're but we But think across XX the taking strong XXXX with business of beyond. indicator basis to for I get gain for can predicted initiatives. in XX predict XXXX of of a too points accomplished early those is we lines where the and And how all strength us much or to efficiency

Jim Fish

about just close so X,XXX automation. on you years couple positions the the Tyler, of over numbers line. said it's And haven't of we But in bottom the what and lot just to a she me will given quick This example. last benefiting a where position, the talked about good customer is become kind we've that really expand let experience. XXX because

I person-to-person was we to the experience. was years, advantage done close mean, XX of last did other turnover And a kind experience, still And -- at used hadn't. over number by has the really that the customer we and It XX%. there same automated that of customer took time, every was way, the attrition. what was we ours experience, industry, which a

in to another call our customers. in of XXX available, drop available it our advantage That's positions close in huge XXXX. the XXXX tune attrition to a And of a hence, eliminated We ability take just close volume as XXX the And option to self-service result, positions and volume. made call to to is made person-to-person but down XX%. a haven't our experience, we've

Tyler Brown

helpful. Yes, come to that's A there. lot on extremely Okay.

more to a just want to in sure half make second to shape of and XXXX of quite up little flattie coming margins are margins, margins? right Okay. and first to year-over-year? down I and half talk of be the we year I half? the back want first and kind going So be be in want Devina, though, then just kind super Can don't I a in QX bit actually half specific. be you bit get that second do -- about margins all the could the to

Devina Rankin

some benefit see is first business, of the the in that something from the is business of it. in backward elements margin the commodity in be of the could drop The our recycling acute. pressure pass-through of quarter of part most prices that because the Margins of And we while typically line year.

some pressure. We have seen

really So the starting to pricing expanding with we mentioned. anniversary particularly quarter, of business the in parts of of impacts second margin second those XXXX, would the some flatness, of on we the in recycling half see business cost contribute I are the they in business quarter, say, as line the the did as the predicting of I and some first side from

the back That starting in I plus in experiencing really see stronger XXX XXX, saw being more the and XXXX said, wouldn't cost we've many some because we the would that year half, first minus this expansion margin expansion half, headwinds to we were So momentum you'll say the first half. in muted second that expect overcome so I half, of margin operating there. strong see

Tyler Brown

of kind Just the build takes. kind maybe for can But flow that expectation year-over-year Okay. went a And Perfect. real what quite helpful. interest cash you That's cash trying and extremely last capital? cash quick, to working on my you back bridge. puts free one, taxes, through and go help then just of bit is over the

Devina Rankin

Sure.

flow some So because so back EBITDA that environment, $XXX growth give million, our driver is cash flow and of at is growth, up. the going with rate cash will to midpoint to interest next year. growth this debt of Unfortunately, cost we're of free going be from the operations that have

quarter basis can fourth actually borrowing went fourth As you points. when quarter our up weighted rate see, results, our look the XX you average at in

And were to all interest driving QX. when of the flat we to costs it be going million XXXX, advance so in virtually increase of We that's QX higher. what's extrapolate that year our that take And in impact $XX and was an long quarter.

is a in and itself that So over impact. of little of $XXX million

And then we do to expect ahead. year debt increase balances in our the

increase Our to seeing to going we debt with sheet. in we are elements are allocation strong and balance be growth, investing such all strong capital going of balances are because that

more the share to buyback back is We on the course give that moderate ahead, of in plan. pulling not it year of over year. the So allocation color some, our cash we'll but any our on you may current

flat. So and in are all interest Taxes I $XXX debt that to higher that is million balances with $XXX the of the essentially actually cost mentioned be taxes. and million to going interest really the higher

would two I really of being we're pretax because higher million, have we the in that expiration mix bonus that, depreciation in other mentioned that expected offset while income; $XXX one-time So we're of place. seeing by the payment things: some moderation of that of putting the one, piece and the a and asset

had $XX to million an So working capital, in million are working I capital interest on pieces. XXXX. headwind the those $XX contribution we The mentioned tax and

some we saying So think back. we that, essentially give we're of that might

of DSO, Some a just we're moderation that recessionary environment is and in contributor amount that because predicting. of payments. But incentive of compensation large timing a is the

Tyler Brown

Thank so always. Very detailed as much. you

Devina Rankin

welcome. You're

Operator

moment Thank question's. for you. One

Kaye next Our with Oppenheimer. Noah from question comes

proceed. may You

Noah Kaye

D&A in Thanks. and a XQ. Good give that what little should provide for Can color on stepped XXXX? first us you morning. D&A be up then

Devina Rankin

Sure.

that's And inflation normal it's regulatory for as So the really our both our costs the color landfill closure, higher. from pressures, cost driving is there inflationary well environment, in costs. post-closure as some of

in relates the to the also of some part changes charge active is it seeing the took that fourth we site landfills, portfolio, the though of management closed of So quarter in our of representative too. we're predominantly

better current next we're terms from step change in DD&A, expecting this but to ahead. In predicting the level, not year's reflect of are another DD&A levels delivery year we trucks of

increased waiting QX. the impact So all depreciation see of than first year in see you'll half that rather some in of to the

Noah Kaye

could we XXXX. again But for $X that billion Okay. number above be

year-over-year? up So net-net step D&A would

Devina Rankin

from just the Net-net it's G&A expenditure deliveries, capital not to be moderately be this step level. with another to is going going change higher but

Noah Kaye

Yeah.

through of cadence guess, growth digits do softening I your hard commercial the about to in Jim, pricing, around on price double seems listening balance declines the how cadence go we on may There course. do business basis? about the price we sequential as of of the some But And pricing? think elements what greatest that, see think It How comments a expectations? of some the math just sector. on in then C&I the year. sustain And we to is Okay. of the

Jim Fish

we it we really why almost there cost it cases, was challenging, the about in there's about Well, think going is have -- XX months or two-fold I a pricing of many mean, all, felt we're last combating -- here. because combating all like inflation, fact, which was I increases so because exercise it towards in One thinking was inflation. think been are

piece a second is a then few adding And margin points for us.

through being a group, as that significantly. moderating because where good inflation ends your think moderate commercial look question pricing price that And we So for us. this particularly will thing our is since that's a up bit, was, for we at

look you year and at last is collection year for this our this for was million If guidance disposal guidance last X.X%. yield $X.X versus year, year

significantly, moderation is in But at there. cost there some least a we're picture. yield So different significantly projecting

hasn't margin the last think it starts three price for again, we whereas, years. So probably to the contribute to

John Morris

returns continue over acceptable that residential still make franchises the if the our look of decisions. of if business, parted that think our get we've I said, margins was only one for path you quarter residential. and And some with. or at loss And I we mentioned we deliberate We as make specific would of that revenue Jim, for clearly, going until to million negative up continue line there, there, line to you down $XX volume volume, business. look the even is the at we're X.X% X.X% ways in we've the

we're so and intensity the said, what acute conditions, inflation combating is Jim shedding don't due with intentionally like that in We it's And labor residential, partly that business happy like most these to progress. there. been but under the we're

Jim Fish

one particular, X.X% maybe don't the a it we differentiated side. side, the there that in last place as I think I have is much a might year. product landfill not moderate landfill MSW product differentiated where the mean, not was but we on and so collection on Yeah, have yield

And highest lot. I that in the for probably maybe come to MSW history. expect I to our at yield that's don't back think a annual

Noah Kaye

Very you. Thank helpful.

Operator

you. Thank

Our with comes Bryan next from Citi. question Burgmeier

You may proceed.

Bryan Burgmeier

EBITDA Good cash cash investment once XXXX period. it conversion before, potentially higher I exceed think near-term. like morning emerge and free be ramped you in flow had will you taking investment investments and generative with the period the get for seems But this question. from flow can you these thanks WM and cash understand free structurally highly from will where before than were can do

Devina Rankin

there. on spot you're Brian, Yes,

to effectively service the to is that EBITDA you're day a capital free you model there for investments and disposal Our each customer. period. because this collection our will and part come be outlay business, of for as where flow there's to convert dollars cash the ability business than revenue through that's the capital Fundamentally, with heightened we different the investment having dollars sustainability spend

that renewable be lower cash will meaningfully period. stronger So in with flow and levels recycling optimistic investment we're conversion maintenance both this capital energy, after

Bryan Burgmeier

is how such for last question infrastructure. in to Got press The And any business? for you say investment existing thoughts returns it. WM that. compare margins it what makes Thanks have Maybe release could possible to longer for the high on just out do or called market plastic your that from recycling an me. enticing a level, term,

Devina Rankin

of if of film -- taking today. use Sure. really more companies to Film and brands we this top Natura rates plastic recycling about And very low on products. all has have CPG PCR, you that, in out look the is strong investment content recycling it. commitments recycled at very The made film mechanically and there,

a market a fit. and So strong is have very we a it's where need there strong

to the that press that in release brokerage seeing are some Also, if also in capital of about Midwest, April. in you're and dollars in providing on think plant us. so more the Houston building collect we'll out bit side a you in invest it that like be fit plastics a portfolio and information the house, for the we felt the on natural What

Bryan Burgmeier

turn it Okay. Great. Thanks over. I’ll a lot.

Operator

Thank you.

CIBC. from comes Kevin question with Chiang next Our

may You proceed.

Kevin Chiang

and and Hi. for pro I look for like something it forma to kind thanks earnings math, -- maybe if coming earnings information a at my of do I here. If seems your these question of Thanks phenomenal. on of the like investments contribution the taking payback supplemental sustainability from quick RNG. back the your XX% looks XX%, you'd get of upwards recycling then And from envelope even of

these exposed investments about it is becomes that guess once I completed? volatility obviously the more how you now earnings of But commodity the big. ROIC are business very underlying do think

Devina Rankin

the can the of on I business. Yes, sides volatility both to speak commodity

mentioned And the also on we it fixed our the into of So ERINs conventional on -- transportation being it term about how and price to side lot markets. thoughtful the have volume XX% talked and tap that's tied house, into the today of a long fixed we've We're that sorry, ability markets. we're versus then RINs, of RNG WM really we really [ph]. the house have side how leverage looks tie suit I really transportation and ramp those to RINs, into our

something And to navigate tracking so very we April. and to closely, that that options on can suffice it's that, bit in we'll it that. whole ensure a of have host But we're information more we say that give a

think I there's very strong fundamentals.

look at If a EPA setting their obligation renewable with the three-year and what on pathway. volume you did announcement the

So gas shores of headed natural we're house. side it really on renewable the the up where

and a revenue prices, improvements the automated that it On side improvements. at paper And And the of really of XX% of to example take then the and able really higher that $XXX independent from how that's what's and I and house, labor we're to in is the prices. look our at at coming great a of is, a fact facilities. is remove exiting quality, the market labor in recycling and ton bales you independent that labor think interesting is it speaks EBITDA, mixed quarter big price XX% from cardboard of if million commodity of piece cost premium. per sell those that

of will those wings. lot us we're from what doing a inflate help So ourselves

Jim Fish

is we're could some value result in going these them. XX% by is situation Tara has advantage taking it turning in us coming advantage and as mean, And I of isn't But for I And taking produced of thing today. said, into is gas was us, our add and you landfills here this presented monetized is fleet about is a to that. that question guess I mean, regardless. might but well, as also add MSW adding that that doing gas of half I shareholders. one your that this monetized volatility, some mentioned into All natural about a gas of as look, because form I to say

by has some, pricing. through fixing are I -- by to looking of think and although very, very, a to the that's view take Does it of a that we into And her add here? there's it of turning I volatile Tara these gas business sites that earlier volatility? why you question But is, some with stream very being paybacks. revenue to add it this strong produced the away answer we're would just profitable taking was very volatility some a adds guess part that answer gone some

Kevin Chiang

color, maybe sounds the helpful. great like, That's you just customer Jim. That's very automation service Maybe some of the on talking side. on just one wins some It were my about second obviously, there. huge

a friction you be Just customer that track, call just Promoter score guess, that like into cost as churn, benefits, would that calling some savings or seeing have had cost other alongside the Score tracking something that might Are promoter whether some churn and maybe like customers centers. the -- your you'd labor out I you savings? wondering of rate labor -- of or a you're you seeing roll the do what guess, I from technology Net

John Morris

that's A these happening question. Yes, digitized elements of things of we've sort front. are that few a good on of One a transactions. lot the is customer-facing

in from We're of that beginning to a and asset that in surprise dips we So started better customers year service not how on, which Devina the have fronts want of Jim to translate quality. seeing second a that our challenged the labor had with has us when in the were some the the year, NPS helped some commented ability and and to scores, also improve but we perspective. NPS that our on half to transact they of digital the scores as

score we're some at start NPS back time, seeing to in arbitrage. So, way benefits the labor we're And half the seeing the same from the of the our year. also, right of the move

and other rear to These recycling benefits. that's think good are I from high load benefits. replacing happening touched recycling are the traditional we've front the sort color system big element these with they're what's mentioned, is bucket manual the Jim system, we're And automation because on gave the As jobs moving And ASL the another we're turnover. we're on jobs with respect they're because Jim to that where seeing moving out. not not clearly of Tara automation and of

Kevin Chiang

from That’s Thank you Excellent. it me. very much.

Operator

you. Thank

with comes Our Capital next RBC from question Walter Spracklin Markets.

proceed. may You

Walter Spracklin

Jim, for like your -- Yes, just thanks that And you're job and point, Kevin's it looks doing on following there a fluctuation, fluctuation. can managing and up be of you're regarding it's some is it up something but managed great very much setting that question Jim. to

up more up investors you never guess In it less how down But go it much one year touched it EBITDA you of some on year prices investors does sector, of commodity and and you're are the waste renewable with go going next. energy this just might to recycled solid really the I volatility are your as But Yes, price result on a the right? is the mean, and down. pointed to fluctuations those. as going accustomed getting out. -- I pricing,

on. want volatility something of your past, that future? kind in My volatility pay something thought regard? you prefer -- Is is spinning you separate delivered as about that in who that would steady consider to to is retaining cards much that company the question, have the stake that willing How while in out that you so the focus can that are and this two I more, do guess, that investors more for has stream these and so you those build a Just so would it? in then the the that EBITDA volatility, as that well curious can off the more desire is

Jim Fish

a you're of a here. points making think Well, couple -- couple I

if one year. were what up going Just thing. implying. last just not did isn't you down than Price going it It's to that's by less slightly It's maybe going correct down.

owning any RNG off we And consider would question there's to of options the off all, spinning options business. we us your is think would us lot said about whether important we which like I is is first we the and value for part owning the I we of -- like But mean, gas, the Tara take earlier, never the table. of that what a for facilities.

we're the owning we'll for but can to to come we're see the time -- gas going mitigate going We're and the to is volatility do develop -- the going the being, and ourselves. itself. full to benefits these And everything we ourselves. And to we so answer like try

the a in, having We I well position a like I've in managed the ago. in being And been where where years a we great position to position of own there number in field been be -- a field. was that landfill didn't the not

position So, well the we being a gas. we where that the manage in fields like produce

Not our we for and But infancy own wouldn't down road. consider on that for going own we're now. our the now, say and in kind to develop we're of to

John Morris

I think Jim --

Walter Spracklin

Okay. much. That question. was my Thanks very only

Jim Fish

Yes.

John Morris

I to going just recycling was the add on side.

looked price and the at earn what separately RNG of ago their prepared commodity you a you my if was went facilities much that you the five But ton. at different. look the $XX you out made, was or recycling If years from versus in comments, six earnings comments back at stream

year, that the not in We're all seeing as which when returns a that mentioned, of portion, Tara small even to to only earnings you fact plants, going still carve our those strong were the margins in we're higher. -- mention our is are next and out MRFs, to add to automated

those recycling would the and that's that you to taken we've argue continue in the business, So forward. why volatility see our I investments a lot going in of out conviction

Jim Fish

change glad think these years I'm we lot did and Yes, four contracts because you John, of made ago, your point. that I point, that's from a

Walter Spracklin

-- volatility. lot you've good of of restructuring terms Yes. contracts a in that's that that to those No, absolutely produce some that's done work clear of

that curious Just the but the question. spinout, terms Appreciate addressed of in time.

Jim Fish

You bet.

Operator

Thank you.

Our Sean next Eastman with Markets. Capital from question KeyBanc comes

may You proceed.

Sean Eastman

Hi, questions. team. taking my Thanks for

reconcile -- reduction of, labor a First also I footprint per reduction the one, mentioned, a I on there the to XXX. think, costs ton XX% just headcount recycling wanted was

those points. reconcile two data to trying Just

Tara Hemmer

Yes.

automated plants and then saw ton, in remarks, cost to automation in we're to on headcount that XXXX. John QX. reduction XX% number on our and is attrition in in labor we XXX XXXX, And related expecting the related So what that's per mentioned XXX his the

Sean Eastman

Could are how Okay. RIN of other this but just about year, tell then, up Helpful. extent one those inputs where to don't price. you for the It's can, the kind to just here, if the $X.XX $XX on the me nitpicking is today? impressive. of sensitivity just think And the numbers some those you guidance climb And numbers? OCC, to we

Tara Hemmer

Yes.

ton per to -- $XX it's our in just basket, clarify, to just So on not commodity OCC,

Sean Eastman

Okay. Yes.

Tara Hemmer

Yes.

year, recycled just $XX side, And seeing So north ton meet uptick number seen $XX some great plastic December we've trying a we're example, where on for exiting this using a seeing content. ton. sustainability commitments pricing of companies plastic that bit. we're a on to related XXXX, And is to, CPG the of signs again, their a increase

we'll that you the So expect, recycling QX, look when to the at on move business. that ramp over side commodity we the quarters at if start of QX, how look through see ramp prices you will QX,

prices RIN side seeing hedge dip will RIN RIN market it the the recognizes that we're renewable exiting the on that XXXX. and We've a where a definitely $X.XX of energy in of seen today then, XXXX, pricing what house, bit throughout were on And expect price, higher. we

off-take our of is XX% remember, fixed. Just

the other XX% So is exposed.

Devina Rankin

contemplated I of the downside that risk are predicting. just Terra the anticipated say of went would downside values less just the has those our currently values what should through, some midpoint the than commodity be guidance And we

Sean Eastman

pass Understood. I’ll much. Thank over. you, it very

Operator

you. Thank

with Our Hoffman Stifel. next from Michael question comes

You may proceed.

Michael Hoffman

just Good is make morning. I sure this very want to clear.

narrowing down, not in prices options unit seeing You of change the is rate price coming down? come are

John Morris

sir. No, are Michael, not. no, we

Michael Hoffman

you today inflation? in are spread internal of Okay. have a the position cost a And where real you against

Jim Fish

Yeah. point. my That earlier was

Michael Hoffman

Okay.

Jim Fish

months. gives for last us spread. This us spread it that essentially We the gives had XX – no

Michael Hoffman

Okay.

dig is understanding. solid want XX solid there's your about to everybody's in about that in XX% waste than to waste think right more XX proportioning? – of investments I Are then then sustainable Is maybe I you into XX%, the is EBITDA, So power and XX% business recycling. the

Devina Rankin

from answer $XXX would that is rivals of year ever Michael, for million business way our The I levels growth about growth question, at that, the history. we're highest look of in our the and seen that the solid outlook the we've ahead, waste if you implying

measuring driving of $XXX million those that what the in solid are things so and the of target. on execution terms And both is focus to our ability our in performance pricing business that we on efficiency long and are what fundamentally operating term, focus grow over waste cost terms strong

John Morris

can I to phrase think do it, used, Michael, I – with this you, we Devina arm tell were Jim. point, But share think and we on with would all I OpEx. Jim's I kind the forget wrestling I of

we're solid is in we the business the said and that the on us two XXXX. I But in movement. the solid of side when next Devina and is guidance improvement of feel OpEx, yield the undertook think last OpEx fourth entering how what good and what's efforts what you the feel and the the about year quarter waste the happened really commentary moving some see our we about for the it about strength on last make really way in quarters, price good particular, waste happening year and EBITDA was

Michael Hoffman

X% other give even the business then of a in to and I'm XXX waste in to about asking to was mix. numbers because agree. I precisely. XX%, why XXXX basis end points, up like XX% in solid XX a points more a little with the EBITDA. get the bit If little of basis into growth And stuff, going XX% I'm maybe in is in a and backing there by solid That's And trying I right, waste solid back waste, right? you're you you're the

Devina Rankin

the really expansion. strong waste are SG&A some EBITDA levers solid overall for growth. predicting that coupled are growth next margin year's Those with We two

Michael Hoffman

Okay.

– I Okay. to core versus better? alternatives? able you consider So solid I us start would segment where starting track to this tried. would be waste all show Well, recurring you the to we

Devina Rankin

disclosures and making today, on we they get We can look we they're and are try step that better. but sure that the available, at focus we'll meet that information to best always goal, have always ensure and We think appropriately our know that you we'll robust. back and continue guys and

Michael Hoffman

vendor Okay. of surprising world still. of to in is the Baseline at side it's X a X.X% And capital spending which of your comes below the of out at a given the X.X is little business revenues, side average. long-term talking lot inflation their about

understand why dollars. trying I'm – So essentially baseline flat, to and absolute that it's sequentially in

is? – So doing what your through way that. the I don't it talk settling that's know, you're I investing think why you in you're business. But not me can under

John Morris

been I looking is. I the think, line it perspective. that's and Michael, if to We're and revenue revenue And of what's at because at the just happened the part also the fact side a go you capital seeing very by shouldn't performance leverage up on of you're necessarily the volume what think that inflationary business look that, there. sensitive from related we've to pressure

On the a supply in issues we of Michael, juggling year truck-related you, the had. challenging side, tell I terms was because this that would of CapEx mostly

be sub-XX our discipline but result of the as around will XXXX I capital balanced, a dollars. more number think seeing you're So

Devina Rankin

XXXX about might execution the as much but side waste some to price our quarter. business, I accelerate some expectations. But that to a a capital point ahead into pull combined strong well year the do, our we operating that, inflation. our take further. the to outlook we is expect discipline, thing we that from of the get out moderated ability adjust with would capital do we on result cost capital in and see is business, particularly as slightly perform did original that as further ensure of steps fourth other our need Should capital solid addressing capital the our isn't for to And we to The just this we into also ability

Michael Hoffman

million two fixed the XXXX, in Last EBITDA versus is RNG of Tara, it $XXX in for how me. Right. of much spot?

Tara Hemmer

based fixed fixed XX% the have that is MMBtu, what that on million fixing of We're more and we is longer-term. Today, today. roughly X on so working

Michael Hoffman

I'm for trying -- that goal a $XXX guess so how million? that's have it. you much ask. I what don't What But of to

Tara Hemmer

Yes.

in give We We'll information have Michael. April, a that you on goal. more

to portfolio longer-term. mix We a pathway have a have

Michael Hoffman

you you do a for… sales give will it when And

Tara Hemmer

unpack April. in going We’re that to

Michael Hoffman

sales right? And we well, so as can this, in will you about April model talk

Tara Hemmer

about revenue, RNG yes, on revenue talking the business. You're

Michael Hoffman

in yes. the but EBITDA mean I have we the and they free Yes, supplemental the cash, don't document, revenue. have

what model. we're all that guessing So our means to

Tara Hemmer

think $XX you. figure we you the You MMBtu number per can I -- out on based it could gave

Jim Fish

Michael, on in we'll and went looking cash give XX%. on to margins whether you're margins is Devina tremendous, April. more are too. Suffice this XX%-ish at she’ll say, business, as through, on conversion EBITDA I the as the get still maybe mean, side detail And then the it’s --

excited why it. this we're it's why so business -- about So

do mention a rather times a where EBITDA I uncertainty about And question than I'd XX M&A, there's about investment times but that asked nobody a has three EBITDA some integration. investment did

So we'll EBITDA with are means. talk high what revenue it about line the margins hugely and these But these RNG on plants.

Michael Hoffman

by compounded increase question $XXX the for you us that to XX% XXXX, new that the would will I dilute the in X%, X% by number, free that EBITDA When or X% solid million waste still In compounding, Last told me. compound cash. at baseline compounding? to XXXX, X% that aggregate business add does the aggregate

Devina Rankin

articulate It's results. be to we business of what is to we can waste X% them that that of parts clearly of each very working level established, that The question, have. business And we to Michael. a has the the expected of couldn't and so growth outperformed that target X% doing more those we're solid segment these great is proud

flow of a business. In what's our the and RNG for step we're level terms happening about in generation in change the businesses, recycling talking free new cash

starting grow just to supplemental articulating opportunity that, the think is this ability point fact of us. job a I and a for that what's done Our outlined deck in great the

Our from here. provides portfolio upside opportunity tremendous

total come further say will number, other as X% Our our landfill have for X% market that's we that we ability addressable or network. to whether that to out our across some the plans articulate building

Michael Hoffman

Okay. questions. for taking my Thanks

Operator

you. Thank

Bank Michael comes Our question next of from America. Feniger with

proceed. may You

Michael Feniger

we're Thanks, know over. everyone. I

on has RIN if over helps apologies beginning RINs policy Tara, full year? that you be year? keep we just I'll that the in for the rolled XXX recovery And short. get it that actions any So touched of to this should why that but this, monitoring

Tara Hemmer

Yeah.

side, for I of for at December the really that EPA the it for a three-year because for the is obligations, program think here in the sets for framework volume day, XXXX, renewable which came the the -- which with on positive in the us. us that and earlier long-term important out thing rule, their positive RIN really remember set is standard pathway the of end to

bit or been EPA a issued. speculation June issues We're not confident little the whether when rule, final right marketplace around come that their that were more clarity. numbers there's the of think there'll those I in be EPA

But you're on to what little strong So side that's seeing. a the long-term, price fundamentals bit related think I of RINs.

Michael Feniger

the years, four been five range tight of just, XX.X%. to in have the you. last And Devina, EBITDA Thank to margins think I XX% your

are moving XX bps, You for up now guiding XX to so there.

quantify for OCC you on much a can RNG there based guide? the margin Just on XXXX of the how headwind is in and

Devina Rankin

It's points. XX to basis XX

Michael Feniger

Perfect.

Okay. Thanks everyone.

Operator

you. Thank

Our Stephanie next question Moore with from comes Jefferies.

may proceed. You

Stephanie Moore

question. it continuation last kind a the just We'll brief. you. of of, Thank Hi. keep And,

talk a but within wanted from what I about in RINs, Just your to business. include seeing factors pricing it does does renewable well other your as know business. some energy you're standpoint include that

also RIN more of year at mean but supply also what renewable there with of term? bring point just gas pricing, facilities I competitors standards just as of Devina, a you kind then necessarily and near-term, but natural or term, online, know the longer of But with supply-demand you more and pricing. maybe risk in discussed kind certainly that next, EPA guys for your more Thanks. any balance is And these longer not this can some

Devina Rankin

in press saw of pricing three imagine, our side, weather you down the did related decline but footnote is Sure. the some as see categories, in side. and I'll record come speak slight we to to to power the prices on we power and a And related whatnot. can release, dynamics in this XXXX the price some

on that's the So power reflected side.

is then pricing and north gas down. natural there. dynamics our I of went now has were over guiding in to. have And we're RIN coming XXX gas think we XXX, and what the a on little just bit And We side, $X the in guidance. natural what come On I in around that's prices, again, XXXX of

the and demand robust. gas what's I they're on the quite think As really natural supply far renewable as side is there markets, and are note dynamic, two important to

value, our we're And DX we where the we're unique The discussions so this which parties. Jim has to is more for RINs. fleet, of is position. have a us, on obligated mentioned first robust side, and we the capture generate in before, transportation where we own own able with

trade RINs to So and long we're a able with history have those that.

premium. own the do same out have them is way to where market utilities come time, that with the their many exists portfolios At to where decarbonize you they to that announcement this public and voluntary have fastest for need you many, of for this And April, buy those. at natural we we that price buy renewable more gas positive renewable we'll in gas give about the really each and natural information but on feel again, options a have

Stephanie Moore

Understood. Thanks so much.

Operator

you. Thank

Our next Yee JPMorgan. Stephanie question with comes from

proceed. may You

Stephanie Yee

Hi. in overall, I just just this range. taking slowing environment. to a the guide the Thank guidance a see ask guess could XXXX the and you're in most or recession probably assuming back maybe to I question. just for come you reflected guidance volume whether economic wanted And you my

of economic the So conservatism of is low embed X.X%, on some kind negative the the at end range environment.

Jim Fish

I wouldn't any are that macroeconomists. say of us

mentioned, numbers But -- roll-off volume our numbers, probably or in are some softness some hard to I not little and a whether albeit continued So that's sure. saw We say. in our in January. bit we're volume-wise QX, we in particularly is as projecting projecting a recession for softness were for a January, stronger

information be if we as slowdown, thing of all some reading savings. I feels much consumer we're their think a type those macro eats the there read -- as through especially last But can, and all as and as am I am of try I tea leaves ourselves, it we the could like economist.

abilities. tell best see that's why important control to an is So own And still why you, our taken to of and manage going year. I this. here can't we business next cost We're to yes, just recession a aspect – sit have pricing seriously. That's to having our very we're on

of at And for positions these lot of number and same time, long-term, makes of the the then sense. a these natural gas a renewable facilities automation

So that really is in the downturn affected by by – any economy.

Stephanie Yee

Okay.

Okay. Great. Thank you.

Operator

Thank you.

comes Our Markets. Devin next Capital Dodge from with question BMO

proceed. may You

Devin Dodge

a you more be could get perspective? April a morning. we'll how on but WM I X, suspect from meaningful Good Erin provide could color framework Thanks. for

Tara Hemmer

and rule So, thing the it's important is summer. sometime over out a final coming to the EPA our will proposed framework be remember with

our invested we term. great these we believe, that owned I at we revenue the though, long think the that landfill to from this, gas ability, And in XX plants electricity to It's stream be us a we example them will our and perspective you got and a have, significant for where own. of have look facilities value. retained

the with value Now, to we're in a position optimize this pathway.

their is Again, really So, framework going on that waiting a optimistic. what bit CapEx to final for EPA stream. potential really color look like, revenue no more from but incremental on

Devin Dodge

Good color.

Okay.

development still expect landfill gas assuming to suitable for the on landfill you or could most even the So Erin's RNG the be same for site do thread, the it? is RNG maybe you projects, do desirable impact think, project, pipeline

Tara Hemmer

question. great Yes,

good good, best something said we have environmental -- actively is, great. And We're with deck. the we best the looking foremost, our going have XX really frameworks I we're We think the in projects to economic at WM. on, for confident options a or on mean, good that that here. we're first decision. I make great that's on the path view Jim we're really these earlier of the the decision, And we're lot news as portfolio. and that

what long most the to sense for evaluate makes going term. we're So us

Devin Dodge

one kind more great. Okay. it And is seen that QX, And yield and question. quarters. price spread than really converged, in XXXX saw in the then recent much But tighter collection suggested core which then out a we've of the again. maybe detailed disposal business, just guide in and we was they But widen would back

that Just impacted can factors spread the of QX?. that you provide some color on in some

Devina Rankin

really wish churn and every during I'm there on hold customers that been able that strong point when of really sorry, core And predict John terms is has And the was question. yield with strong we and And large to ever but we've to on the our yield. had great between prepared XXX ever convert was being part, a results to best price the it's QX a speaks difference Yes, that his we the basis specific core the remarks, in that mentioned improvement to towards science were to we're really the robot comment holding that on price is -- seen. a ability dollar as best indicator doing churn our and well. strong price our churn, in

to macroeconomic we'd little is yield, self-antigen are a is to that still in back to our yield more of point to to seeing ability year than goes a of terms environment pad. the done in we didn't core outlook. overpredict our I signs articulating. today, of job Stephanie's soft to Because our We think ahead. view predict we quarter a 'XX, convert the of earlier long-term averages though price uncertain launch converting our the core question levels indicators fourth We those think the about and it ability all we XXXX, price dollar rather in recession those macroeconomic do good used actually than want In see to that it

Devin Dodge

I’ll Thanks, guys. Makes sense. there. Okay. it leave

Operator

further any to back Thank to at for showing time. I Fish you. would call closing I’m And like questions Jim now now this any over the turn remarks.

Jim Fish

you quarter. and today, for ran patience. Thank Thanks we next a to we bit but to you for cover. Well, will lot you. us your have we a Thank talk long Okay. joining

Operator

you. Thank you This participating. today's concludes Thank conference for call.

disconnect. now You may

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