"Given the tough economy, the seasonal slow-down and their combined negative impact on revenues, our bottom-line performance proved our ability to better manage variable costs," commented A. Maurice Myers, chairman, president and CEO of Waste Management. "As a result of our efforts, SG&A costs were significantly improved from the fourth quarter, and, after adjusting for the fourth quarter benefit from insurance settlements, operating expense as a percent of revenue was essentially flat, despite the fact that revenues were over $180 million lower in the first quarter than the fourth. Our people accomplished this by managing controllable costs, partially as a result of the tactical cost saving initiative and the reorganization we announced earlier this year.
"On a year-to-year comparative basis, our volumes appear to have hit a trough during the month of March. For the full quarter, lower volumes reduced revenue by about 3%, with the March volumes off quite a bit more than volumes in January and February. April landfill and roll-off volumes, however, have rebounded nicely, and those factors combined with favorable moves in recycling commodity prices lead us to be optimistic that the positive seasonal upswing that we have anticipated is materializing."