<PAGE>
Registration No. 333-01327
Filed Pursuant to Rules 424(b)(3) and (c)
Prospectus Supplement dated October 21, 1997 to
Prospectus dated August 12, 1997,
as supplemented by a Prospectus Supplement dated October 10, 1997
For the quarter ended September 30, 1997, net income from continuing operations
of Waste Management, Inc. (the "Company") was $172 million, or $0.38 per share,
compared with $240 million, or $0.49 per share, for the same quarter of 1996.
Earnings for the third quarter of 1996 were benefited by certain non-recurring
items including gains on sales of divested operations, income from settlement of
claims against insurance carriers and lower depreciation and casualty claim
expense. Revenue in the third quarter of 1997 was $2.4 billion, approximately
the same as the year-earlier quarter.
Net income from continuing operations for the first three quarters of 1997 was
$531 million, or $1.13 per share, versus $638 million, or $1.30 per share, for
the same period a year earlier. Nine-month results for 1997 include the impact
of the Company's share ($10.4 million, or $.02 per share) of a second-quarter
special charge recorded by OHM Corporation, in which the Company has a 37-
percent equity interest. Revenue in the first nine months of 1997 was $6.9
billion, approximately the same as a year earlier.
Results in the Company's North American solid waste services business were
slightly aided in the third quarter of 1997 by an improvement in recycled
commodity prices, although the total volume of recycled material declined to
800,000 tons primarily due to the divestiture of the Company's Canadian
operations in the second quarter.
In the third quarter of 1997, capital spending was $236 million (excluding
acquisitions), compared with $277 million in the quarter a year earlier. For the
first nine months of 1997, capital spending (excluding acquisitions) was $605
million compared with $855 million in the prior year. Capital spending for 1997
was budgeted at $900 million.
In the third quarter and first nine months of 1997, respectively, the Company
generated approximately $202 million and $266 million in cash flow from
operations, net of capital expenditures and dividends. In addition, year to date
in 1997 the Company has generated approximately $1.3 billion in proceeds from
asset divestitures.
The Company did not repurchase shares of its stock in the third quarter of 1997.
The Company's total number of shares outstanding at the end of the third quarter
of 1997 was approximately 455 million.
Tables of the Company's Consolidated Statements of Income for the three months
and nine months ended September 30, 1997 follow.
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WASTE MANAGEMENT, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
FOR THE THREE MONTHS ENDED SEPTEMBER 30
(Unaudited)
(000's omitted except per share amounts)
<TABLE>
<CAPTION>
1996 * 1997
---- ----
<S> <C> <C>
REVENUE $2,372,746 $2,351,189
---------- ----------
Operating expenses $1,630,518 $1,674,910
Selling and administrative expenses 240,383 256,291
Interest expense 89,948 98,477
Interest income (4,999) (6,201)
Minority interest 32,155 30,435
Sundry income, net (23,540) (6,920)
---------- ----------
Income from continuing operations
before income taxes $ 408,281 $ 304,197
Provision for income taxes 168,117 132,096
---------- ----------
Income from continuing operations $ 240,164 $ 172,101
Income from operations of discontinued
businesses, less applicable income taxes
and minority interest of $5,623 in 1996 5,042 --
---------- ----------
NET INCOME $ 245,206 $ 172,101
========== ==========
AVERAGE COMMON AND COMMON
EQUIVALENT SHARES OUTSTANDING 490,693 455,945
========== ==========
EARNINGS PER COMMON AND COMMON
EQUIVALENT SHARE
Continuing operations $0.49 $0.38
Discontinued operations 0.01 --
----- -----
NET INCOME $0.50 $0.38
===== =====
</TABLE>
* Certain amounts have been restated to conform to 1997 classifications.
<PAGE>
WASTE MANAGEMENT, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
FOR THE NINE MONTHS ENDED SEPTEMBER 30
(Unaudited)
(000's omitted except per share amounts)
<TABLE>
<CAPTION>
1996 * 1997
---- ----
<S> <C> <C>
REVENUE $6,848,219 $6,876,806
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Operating expenses $4,744,622 $4,860,742
Selling and administrative expenses 732,934 740,620
Interest expense 278,045 296,762
Interest income (17,660) (28,079)
Minority interest 90,756 86,511
Sundry income, net (62,254) (7,568)
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Income from continuing operations
before income taxes $1,081,776 $ 927,818
Provision for income taxes 443,699 397,281
---------- ----------
Income from continuing operations $ 638,077 $ 530,537
Income from operations of discontinued
businesses, less applicable income taxes
and minority interest of $16,364 in 1996 15,349 --
---------- ----------
NET INCOME $ 653,426 $ 530,537
========== ==========
AVERAGE COMMON AND COMMON
EQUIVALENT SHARES OUTSTANDING 491,712 468,980
========== ==========
EARNINGS PER COMMON AND COMMON
EQUIVALENT SHARE
Continuing operations $1.30 $1.13
Discontinued operations 0.03 --
----- -----
NET INCOME $1.33 $1.13
===== =====
</TABLE>
* Certain amounts have been restated to conform to 1997 classifications.
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