Waste Management 2014 Annual Report Download - page 218

WASTE MANAGEMENT, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
22. Quarterly Financial Data (Unaudited)
The following table summarizes the unaudited quarterly results of operations for 2014 and 2013 (in
millions, except per share amounts):
First
Quarter Second Quarter Third Quarter Fourth Quarter
2014
Operating revenues ...................................... $3,396 $3,561 $3,602 $3,437
Income from operations ................................... 469 532 546 752
Consolidated net income .................................. 237 222 281 598
Net income attributable to Waste Management, Inc. ............ 228 210 270 590
Basic earnings per common share ........................... 0.49 0.45 0.59 1.29
Diluted earnings per common share ......................... 0.49 0.45 0.58 1.28
2013
Operating revenues ...................................... $3,336 $3,526 $3,621 $3,500
Income (loss) from operations .............................. 402 510 577 (410)
Consolidated net income (loss) ............................. 176 256 297 (599)
Net income (loss) attributable to Waste Management, Inc. ....... 168 244 291 (605)
Basic earnings (loss) common share ......................... 0.36 0.52 0.62 (1.29)
Diluted earnings (loss) common share ....................... 0.36 0.52 0.62 (1.29)
Basic and diluted earnings per common share for each of the quarters presented above is based on the
respective weighted average number of common and dilutive potential common shares outstanding for each
quarter and the sum of the quarters may not necessarily be equal to the full year basic and diluted earnings per
common share amounts.
Our operating revenues normally tend to be somewhat higher in the summer months, primarily due to the
higher volume of construction and demolition waste. The volumes of industrial and residential waste in certain
regions where we operate also tend to increase during the summer months. Our second and third quarter revenues
and results of operations typically reflect these seasonal trends. Through 2014, the operating results of our first
quarter also often reflected higher repair and maintenance expenses because, prior to the sale of our
Wheelabrator business, we relied on the slower winter months, when waste flows are generally lower, to perform
scheduled maintenance at our waste-to-energy facilities. Additionally, from time to time, our operating results
are significantly affected by certain transactions or events that management believes are not indicative or
representative of our results. The following significant items have affected the comparison of our operating
results during the periods indicated:
First Quarter 2014
• During the first quarter of 2014, we experienced significantly higher revenues in our Wheelabrator
business and the renewable energy operations in Solid Waste from temporarily higher electricity prices
driven by weather-related demand. This increase in revenues offset reduced revenues in our collection
and disposal operations due to inclement weather.
Second Quarter 2014
• The recognition of a pre-tax loss of $25 million on the divestiture of our Puerto Rico operations and
certain other collection and landfill assets. No tax benefit was recorded in connection with the loss. In
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