National Waste Management Holdings, Inc. :NWMH-US: Earnings Analysis: 2015 By the Numbers

National Waste Management Holdings, Inc. reports financial results for the year ended December 31, 2015.

Highlights

  • Gross margins widened from 44.00% to 47.23% compared to the same period last year, operating (EBITDA) margins now 20.46% from 22.23%.
  • Change in operating cash flow of 134.09% compared to same period last year is about the same as change in earnings, likely no significant movement in accruals or reserves.
  • Narrowing of operating margins contributed to decline in earnings.

The table below shows the preliminary results and recent trends for key metrics such as revenues and net income growth:

2011 2012 2013 2014 2015
Relevant Numbers (Annual)
Revenues 0 0 1.26 1.67 2.5
Revenue Growth (YOY) N/A N/A N/A N/A N/A
Earnings -0 -0 0.17 0.16 -0.06
Earnings Growth (YOY) -300 -44.32 5486.96 -8.13 -139.72
Net Margin N/A N/A 13.55 9.42 -2.5
EPS -0 -0 0 0 -0
Return on Equity N/A N/A N/A N/A -2.34
Return on Assets -2200 -295.35 28.8 12.4 -1.1

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Earnings Growth Analysis

The company’s earnings declined year-on-year largely because of the increases in operating costs. Its operating margins (EBITDA margins) went from 22.23% to 20.46%. This decline in earnings would have been worse except for the fact that the company showed improvement in gross margins, from 44.00% to 47.23%. For comparison, gross margins were 44.00% and EBITDA margins 22.23% in the immediate last period.

Cash Versus Earnings – Sustainable Performance?

NWMH-US‘s year-on-year change in operating cash flow of 134.09% is around its change in earnings. This suggests that there are likely no significant movement in accruals or reserves for managing earnings this period.

Margins

The company’s decline in earnings has been influenced by the following factors: (1) Decline in operating margins (EBIT margins) from 14.91% to 9.61% and (2) one-time items that contributed to a decrease in pretax margins from 14.27% to -3.78%

EBIT Margin History
PreTax Margin History

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Company Profile

National Waste Management Holdings, Inc. provides waste management services. It offers landfill services and provides roll-off containers. The company’s landfill services include construction and debris landfill, clean-up and hauling, land clearing and yard trash debris and recycling and roll-off dumpster services provides dumpsters for lease for construction sites and special events. National Waste Management Holdings was founded on February 23, 2010 and is headquartered in Hernando, FL.

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