Bg~NQA{WU1nH(+V 2! In response to the volatility in these costs, and in order to maintain an operating margin acceptable to GFL, our customers may be charged a fuel surcharge, which in some instances may be referred to as a Energy Recovery Charge. Your pricing is very strong in Q2. Our cash generation plus our strong balance sheet affords us the ability to allocate capital to our priorities, investing in organic growth and sustainability initiatives, predictably growing our dividends, completing accretive acquisitions, and returning cash through share repurchases. We apply this charge to a customers invoice whether or not the customer is serviced in a city, municipality, county, province, state or another region that charges or assesses host community fees, waste disposal taxes or similar charges. The amount or percentage of the Fuel Surcharge is not specifically tied to the direct or indirect costs to service a specific customer account. And that obviously is impacted as you're having to keep older trucks in the fleet. Learn more about what it means to do business with BNSF and the process we use for working with suppliers. And when we look at our July numbers in terms of volume, they look pretty good.
If we think about another bucket, we've talked a lot about recycling. The cookie is used to store the user consent for the cookies in the category "Performance". Visit our Acceptable Materials for Recycling Collection page. It is based on what SBC Waste Solutions has to pay in host community fees and other regulatory costs. Q: What is a host fee? Understood. Accumulate up to 110 gallons of recyclable fuel waste on your site for up to a year. It also helps us reach an acceptable operating margin. Either by contract or at the discretion of SBC Waste Solutions, some customers pay a nonstandard environmental charge and some are exempt from the environmental charge. %%EOF
During the first half of the year, we've invested $856 million in capital to support the business, and we invested an additional $112 million to support the strategic growth of our recycling and renewable energy businesses. Our next question comes from Noah Kaye of Oppenheimer. Log in to MyAccount and click the Vacation Hold link. Thank you. 
If you would like more information on any of the subjects contained in this section, please feel free to contact us. I mean, last year, we didn't get the trucks that we ordered. 
Liquid Environmental Solutions surcharge tables show what the energy surcharge, as a percentage of your monthly or other periodic invoice charges, before taxes, is based upon the last reported EIA/DOE national diesel price index prior to your invoice date. A large, green button with the text "Link Account" can be found on both of these pages in My Account. 0000003402 00000 n
Perfect. WebThe variable fuel surcharge will be expressed as a percentage of a customers total invoice amount (excluding taxes and other charges), unless otherwise agreed, and is intended to address direct and indirect energy costs fuel, natural gas, electricity that affect almost every material used and service offered by Amwaste. In addition, third party vendors that transport our waste charge us a fuel surcharge or an increased price for added fuel costs. A: Yes, because the charge is tied to EIA/DOE index, if the EIA/DOE's national average diesel price falls, your fuel surcharge component will come down as well. This information is updated weekly.
They just have to refer to the Collection Fuel Surcharge Table or Disposal Fuel Surcharge Table. I know the business is pretty resilient. WebSolid Waste Carriers Fuel Surcharge Forms Fuel Surcharge Forms Click on the document name to open the form. FedEx Domestic Fuel Surcharge Table (Diesel price per Euro/ liter) Fuel surcharge percentages and amounts, associated trigger points and methods of calculation are subject to change without notice. Well, you're absolutely right, Jerry, about the tailwind on those businesses that are driven by an index-type increase. It is equal to 9.75% of the Sale Price for residential trash service; including any admin or hauler specific fuel/environmental fees. Now I'll turn the call over to WM's president and CEO, Jim Fish. And Jim, in terms of the offtake market, is that developing? Yes. It might be 2% or 3%, if I had to kind of pick a number. We've done a good job in answering the questions.
The environmental charge will not fluctuate each month. One is we talked about pricing right now basically covering cost and starting to -- as you see inflation coming down, a bigger component of price goes to margin accretion. The environmental and regulatory recovery fee is calculated by adding a percentage of all invoice charges (including other surcharges and fees, but excluding taxes). I would tell you that pricing, really across the board, I can't find a weak spot in terms of how we're performing on the price front. That's a pretty important part of the inflation picture because, as John mentioned, maintenance cost is not insignificant as a cost line item. Fuel surcharge. Thanks, guys. Yes. A: Yes, because the charge is tied to EIA/DOE index, We remain confident that our pricing strategies are appropriately responsive to rising costs while prioritizing customer lifetime value. As Jim mentioned, I don't think any of us think this labor shortage or the labor wage pressure is going to abate anytime soon. The one thing I would emphasize, Michael, in terms of looking at the total company margin over that 5-year period, in addition to what Jim outlined specifically for commodity-based impacts and the ADS acquisition, is that when you think about the investment we're making in technology, it's showing up in our SG&A in a different way than it would have had we effectively decided to have SG&A dollars be to run the business model. Are you a residential or commercial service customer? And so what you see from us is that we have a different level of SG&A than we otherwise would have if we weren't making these strategic investments that will provide significant returns over the long term. The Energy charges are not calculated based on any specific costs (direct or indirect) of servicing your individual account, and include a profit component. Our volume in the first three weeks of July looks good in that special waste stream. We announced the continuous investments last quarter or a couple of quarters ago and which is taking low-value plastics that we weren't getting paid a lot for and some of those mixed papers that I mentioned that are low value as well, and combining them and making a roofing material. Appreciate the discussion. Given ever changing fuel prices, the fact that many customers have been with us since before 2000, the nature of contract renewals, and the addition of new customers, employing an historical baseline rate was the best administrative approach for us. SBC Waste Solutions has invested heavily in green technology, such as LNG or CNG trucks. I mean, look, put a number on -- put whatever number you want on those 5,000 to 7,000 positions that don't get refilled. sign up for training opportunities and more. The power of that is pretty compelling. Thank you. SBC Waste Solutions uses the surcharges to try to recover the all company-wide costs for diesel, natural gas, and other hydrocarbon-based fuels and products used by SBC Waste Solutions above the $.95/gallon diesel cost baseline, only from those customers subject to a fuel surcharge, this this exclude anyone who is exempt from the surcharge, as well as non-paying customers. That's right. And would you go even further? Please log in to access pricing tools and information. And Devina did a nice job of talking about the fact that it's really -- it's margin-destructive, but it's not earnings-destructive. An increase in the environmental component occurred for most of our customers in April 2010. The cookies is used to store the user consent for the cookies in the category "Necessary". We expect similar levels, maybe a moderate decrease in the second half of the year on a quarter-by-quarter basis. These prices change constantly, so a surcharge helps offset this volatility. endstream endobj 679 0 obj <>stream To contact your customer support team, visit gflenv.com/support and enter your address to send a message to your local branch. You can find your pickup and holiday schedules in MyAccount. How long do you think an above-normal M&A environment could last? By contract or at the SBC Wastes discretion, some customers pay a nonstandard fuel surcharge and some customers are exempt from any fuel surcharge. xref Easily search available rates, collaborate with BNSF on rates, as well as track the progress on rates for new opportunities. Waste Solutions is a family and woman-owned company of industry experts with more than 100 years of experience. Fourth of July this year was on Monday, last year was on Sunday. We're not really exposed too much there, Tyler. Q: Did the environmental charge component recently Thanks for taking my questions. 0000001202 00000 n On the recycling side of the business, we were better in the first half about $28 million. WebThe fuel surcharge is not a tax, surcharge, or fee mandated by or remitted to any governmental or regulatory agency. We do have an environmental fee, and that environmental fee does get captured in our price figures. And just you had flagged an above-normal M&A year. To learn more about yard waste collection, visit gflenv.com/our-services/for-home/residential-solid-waste/organics-compost/. So what you saw in that 120 basis points is 80 basis points led by fuel.
Through the environmental charge, SBC Waste Solutions tries to recover all applicable company-wide environmentally relevant costs to its operations, but only from the customers who are subject to an environmental charge. 0000002165 00000 n
A: The Regulatory Cost Recovery Charge is a standard charge assessed by sbc waste services intended to cover a portion of our enterprise-wide costs for host community fees and disposal taxes paid by sbc waste services. Obviously, ADS had an impact on margin. 0000000736 00000 n
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The strength and resiliency of our business was clearly on display in the second quarter as we built on our first quarter momentum to deliver results that exceeded our expectations. As we take -- permanently take cost out of the organization and become less labor dependent, that definitely has an impact on margins. Minimum of 3 months service required. Beginning and ending service dates may vary by collection area. Retirees may not work at BNSF any longer, but many are active in their communities and play an important role as unofficial ambassadors for BNSF. As you know, based on our discussions, and we're with you that the business was pro forma-ed at much lower numbers. Commercial and industrial pricing has been excellent as well. 
But we always feel like we want to be conservative on valuations, and that's maybe the single most important piece is does it meet our strategic goals?
Rumpke works to eliminate extra fees. This charge applies to the environmental and fuel charges but not to taxes. And so I was thinking -- go ahead, John, sorry. The cost of energy such as diesel, natural gas and other hydrocarbon based fuels and their byproducts are constantly changing and impact nearly every material and activity in the services provided by GFL. The Motley Fool recommends Waste Management. By logging in to MyAccount, you can also pay your bill or add a new service to your account. Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. 0000002615 00000 n It's why we're seeing a pretty robust pipeline here. So really happy with the strong performance of the solid waste business, and I think that's the highlight when you look at the margins for the business in the quarter. But just maybe frame for us, what's driving that? We've talked a lot about special waste the last couple of quarters. Fuel costs 41% more than it did in January 2021. The amount of the charge is not directly or indirectly linked to the cost to service a given customers account. Thank you for standing by, and welcome to the WM second quarter 2022 earnings conference call. So thanks for joining us today. Simply click that button to bring up the account linking options. That the conversations have changed a little bit? The cost of petroleum-based containers and products such as landfill liner is up by 30%-40%. And just this dynamic around comping the heavy wage increases. So you're right. And the reason is that it's such a small percentage of the customer's overall cost structure. John Morris -- Executive Vice President and Chief Operating Officer. WebWM Historical Fuel/Environmental Charge Percentages Week of DOE Average WM Collection Surcharge % WM Disposal Surcharge % Environmental % 06-Mar-23 $ 4.28 The 12-month lag that we've talked a lot about really starts to help us most significantly in the first quarter of next year.
The SBC Waste Collection Fuel Surcharge Table or the SBC Waste Disposal Fuel Surcharge Table details what the fuel surcharge as a percentage of a customers monthly charge (or other incremental invoice charges) before taxes would be based on the most recently reported EIA/DOE national diesel price that came before the customers invoice date. Just so we're clear. We're proud to tell our story and how we strive to be a trusted partner worthy of your respect. Just a clarification question and I'll turn it over, just for Devina. Here we demonstrate how BNSF's legacy makes us confident in our future. We accomplished this result in spite of an increase in incentive compensation due to our focus on controlling discretionary SG&A spending and leveraging technology investments to reduce the customer sales and back office functions. BNSF is a critical link that connects consumers with the global marketplace. And the operating improvements, whether it's SG&A or operating cost, if it's 5,000 jobs, let's put a number on that of $50,000 to $100,000 per, it's a big -- it's a material impact to opex and to SG&A. The Energy/Environmental Charge that appears on your invoice is determined by applying the percentage from Liquid Environmental Solutions Energy Surcharge Table to the invoice charges (excluding tax): The Energy/Environmental Charges are not taxes or surcharges imposed by or remitted to any governmental or regulatory agency, nor is it required by law; it is our charge. Contact SBC Waste Solutions for more information. I just wanted to come back to inflation. DES MOINES 515-974-1600 So as I think about the macro economy overall, I do think there is a recession coming. We believe employing a fuel surcharge that uses a common baseline rate for all our customers is the best approach, as it results in a uniform fuel surcharge that can be calculated by customers, Regulatory Cost Recovery Charge And my point being is if all of this unwinds from an inflationary standpoint or there's a recession, you don't walk back unit prices. A: No. WebEach monthly FRF rate is determined by cross-referencing Republic Services FRF Table with the peak weekly diesel price per gallon, published in the 30-day period ending on the But at this point, there's -- as we've talked about, there's such a nice robust pipeline of just traditional solid waste that we feel like we can focus there. After that, we apply the environmental percentage to the total invoice, which includes the fuel surcharge. Find information regarding potential finance charges. Right now, we're kind of in a street fight trying to cover costs at 9.1% CPI. WebPublished Rates. Fuel Surcharge is variable and is updated weekly. So I'll take that in two pieces, Michael. Q: What does this charge cover? Calculate ALK rail miles from point to point. Once again, we achieved exceptional organic revenue growth in the second quarter, led by collection and disposal yield of 6.2%. This cookie is set by GDPR Cookie Consent plugin. Is there a sweet spot that you feel like is the right number where it helps you get good pricing resets on those contracts, yet you guys can also handle the cost inflation on the business in terms of also getting productivity savings every year? Q2 revenue: $1.708B Up 40.4% year over year Net income: $64.3M Solid waste pricing: +7.3% Along with a 1.9% revenue contribution from fuel surcharges, these increases were described as the highest in company history. M&A: $360M Year-to-date annualized revenue contribution from 28 deals closed to date WebThe Fuel Surcharge allows Waste Pro to keep up with, recover and offset the cost of diesel, natural gas (CNG) and other fuels that Waste Pro collectively uses to operate its fleet of In closing, our excellent first half performance sets us up to deliver another year of strong financial growth in 2022. Customer receptivity to our pricing remains strong as second quarter churn, adjusted for the intentional loss of an unprofitable national account contract, was 9%. And that's looking at the operating expense line, so we would also -- for the EBITDA margin, and I think it's important in thinking about EBITDA margin in two pieces. Learn how easy it is to become a BNSF customer. But if that was your question, it's a combination of core price increases. I think the commentary on labor, we got out front of it last year. Does it feel like 2023 is when this margin range really breaks out 50 basis points or higher? The WM Collection Fuel Surcharge Table shows what the Fuel Surcharge, as a percentage of a customers monthly or other periodic invoice charges, before taxes, would be based upon the last reported EIA/DOE national diesel price prior to a customers invoice date. Log in to MyAccount and click Manage Container. 
Rail is the most environmentally efficient mode of surface transportation and at BNSF we are committed to improving the efficiency of our network in a way that benefits both our customers and the environment.