Waste Management, Inc. (NYSE:WM) Q2 2020 Earnings Conference Call - Final Transcript

Jul 30, 2020 • 10:00 am ET

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Waste Management, Inc. (NYSE:WM) Q2 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Waste Management Second Quarter 2020 Earnings Release Conference Call.

[Operator Instructions]

I would now like to hand the conference over to your speaker today, Ed Egl, Senior Director, Investor Relations. Thank you. Please go ahead, sir.

Executive
Ed Egl

Thank you, Marianne. Good morning, everyone, and thank you for joining us for our second quarter 2020 earnings conference call.

With me this morning are Jim Fish, President and Chief Executive Officer; John Morris, Executive Vice President and Chief Operating Officer; and Devina Rankin, Executive Vice President and Chief Financial Officer. You will hear prepared comments from each of them today. Jim will cover high-level financials and provide a strategic update. John will cover an operating overview, and Devina will cover details of the financials. Before we get started, please note that we have filed a Form 8-K this morning that includes the earnings press release and is available on our website at www.wm.com. The Form 8-K, the press release and the schedules of the press release include important information.

During the call, you will hear forward-looking statements, which are based on current expectations, projections or opinions about future periods. We will also be discussing our updated financial outlook for 2020. This outlook excludes transaction and advisory costs and post-closing financial contributions resulting from our planned acquisition of Advanced Disposal Services, Inc., which may be also referred to as ADS. Once we complete this acquisition, we expect to provide an updated outlook.

All forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially. Some of these risks and uncertainties are discussed in today's press release and in our filings with the SEC, including our most recent Form 10-K and subsequent Form 10-Qs.

John will discuss our results in the areas of yield and volume, which, unless otherwise stated, are more specifically references to internal revenue growth or IRG from yield or volume. During the call, Jim, John and Devina will discuss operating EBITDA, which is income from operations before depreciation and amortization. Any comparisons, unless otherwise stated, will be with the second quarter of 2019.

Net income, EPS, operating EBITDA margin and SG&A expense results have been adjusted to enhance comparability by excluding certain items that management believes do not fundamentally -- that do not reflect our fundamental business performance or results of operations, including costs incurred in connection with the pending acquisition of ADS. These adjusted measures, in addition to free cash flow, are non-GAAP measures. Please refer to the earnings press release and the tables, which can be found on the Company's website at www.wm.com for reconciliations to the most comparable GAAP measures and additional information about our use of non-GAAP measures and non-GAAP projections.

This call is being recorded and will be available 24 hours a day beginning approximately 1:00 PM Eastern time today until 5:00 PM Eastern time on August 13th. To hear a replay of the call over to the Internet, access