Waste Management 2014 Annual Report Download - page 81

becoming more complex, and our aim is to address, and anticipate, the current, expanding and evolving needs of
our customers. Accomplishment of our goals will grow our Company and allow us to meet the needs of our
customers and communities as they, too, Think Green®.
We believe we are uniquely equipped to meet the challenges of the changing waste industry and our
customers’ waste management needs, both today and as we work together to envision and create a more
sustainable future. As the waste industry leader, we have the expertise necessary to collect and handle our
customers’ waste efficiently and responsibly by delivering environmental performance — maximizing resource
value, while minimizing environmental impact — so that both our economy and our environment can thrive.
Drawing on our resources and experience, we also pursue projects and initiatives that benefit the waste industry,
the customers and communities we serve and the environment.
We remain dedicated to providing long-term value to our stockholders by successfully executing our
strategy: to know and service our customers better than anyone in our industry, to extract more value from the
materials we manage, and to innovate and optimize our business. We plan to accomplish our strategic goals
through competitive advantages derived from a “best cost” structure achieved through operational improvements
and differentiation in our industry, driven by capitalizing on our extensive, well-placed network of assets. While
we will continue to monitor emerging diversion technologies that may generate additional value, our current
attention will be on improving existing diversion technologies, such as recycling operations.
In pursuit of these long-term goals, we recognize that we must grow the business, and do so as efficiently
and cost effectively as possible. Accordingly, we are focusing on the following five key company priorities:
• Customers: provide the best possible service to our customers;
• Traditional Waste Business: continuously improve our operational performance;
• Growth: take advantage of opportunities in our current business, as well as considering attractive
acquisition opportunities;
• Yield Management: remain focused on price leadership while considering competitive dynamics; and
• Costs: minimize both operating costs and selling, general & administrative expenses.
We believe that execution of our strategy through these key priorities will drive continued financial
performance and leadership in a dynamic industry. In addition, we intend to continue to return value to our
stockholders through dividend payments and common stock repurchases. In February 2015, we announced that
our Board of Directors expects to increase the quarterly dividend from $0.375 to $0.385 per share for dividends
declared in 2015, which is a 2.7% increase from the quarterly dividends we declared in 2014. This will result in
an increase in the amount of free cash flow that we expect to pay out as dividends for the 12th consecutive year
and is an indication of our ability to generate strong and consistent cash flows. All quarterly dividends will be
declared at the discretion of our Board of Directors.
Operations
General
We evaluate, oversee and manage the financial performance of our local Solid Waste business subsidiaries
through our 17 Areas. See Note 21 to the Consolidated Financial Statements for additional information about our
reportable segments. In December 2014, we sold our Wheelabrator business, which provides waste-to-energy
services and manages waste-to-energy facilities and independent power production plants. We intend to re-invest
the proceeds from the sale of our Wheelabrator business to create long-term stockholder value. Our priority is to
pursue acquisitions in our Solid Waste business, and we will also evaluate repurchasing our common stock and
making other investments in support of our strategic growth plans, while continuing our focus on a strong
balance sheet. Refer to Note 19 to the Consolidated Financial Statements for additional information related to our
4