2004. Revenue increased by $152.7 million, or 6.5%, from 2002 to 2003. The following table reÖects the
components of our revenue growth for the years ended December 31, 2004, 2003 and 2002:
2004 2003 2002
Core price ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 2.3% 1.8% 1.4%
Fuel surchargesÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ .2 .2 Ì
Recycling commodities ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ .5 .1 .4
Total priceÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 3.0 2.1 1.8
Core volume ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 3.6 2.1 1.6
Non-core volume ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ .1 Ì .4
Total volumeÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 3.7 2.1 2.0
Total internal growth ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 6.7 4.2 3.8
AcquisitionsÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ .9 1.8 .8
Taxes(a) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Ì .5 .2
Total revenue growth ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 7.6% 6.5% 4.8%
(a) Represents new taxes levied on landÑll volumes in certain states that are passed on to customers.
‚ 2004: During the year ended December 31, 2004, our revenue growth from core pricing beneÑted
from a broad-based pricing initiative which we started during the fourth quarter of 2003. During the
year ended December 31, 2004, we experienced core volume growth in all lines of our business,
including our residential collection business resulting from the addition of several new municipal
contracts, and our landÑll and transfer station businesses resulting from newly opened sites and new
contracts. Our internal growth from our core operations was 5.9% in 2004.
‚ 2003: During the Ñrst three quarters of 2003, we experienced moderate growth in revenue due to an
increase in core pricing. During the fourth quarter of 2003, our revenue growth from core pricing
increased at a more rapid pace due to our broad-based pricing initiative.
During 2003, the economic slowdown which began during 2001 continued to negatively impact our
business. However, during 2003, our revenue growth from core volume continued to be positively
impacted by long-term franchise and municipal contracts that were secured during 2002. Our internal
growth from core operations was 3.9% in 2003.
‚ 2002: The economic slowdown which began in 2001 continued to negatively impact the portion of our
business servicing the manufacturing sector and non-residential construction industry during 2002.
Volumes attributable to manufacturing and construction activity continued to weaken during 2002.
The weakness in our business attributable to the economic slowdown was partially oÅset by an increase
in recycling commodity prices in the early part of 2002.
Despite the weakness we experienced in the aspects of our business noted above, our internal growth
from core operations for 2002 was 3.0%. During 2002, we secured several long-term franchise and
municipal contracts. We also beneÑted from the geographic mix of our business which favors high-
growth markets.
‚ 2005 Outlook: We anticipate internal growth from core operations to be in the range of 4.0% to 4.5%
during 2005 assuming no deterioration or improvement in the overall economy from that experienced
during the fourth quarter of 2004. However, our price and volume growth may remain Öat or may
decline in 2005 depending upon economic conditions and our success in implementing pricing
initiatives.
Cost of Operations. Cost of operations was $1,714.4 million, $1,605.4 million and $1,472.9 million, or,
as a percentage of revenue, 63.3%, 63.8% and 62.3%, for the years ended December 31, 2004, 2003 and 2002,
respectively.
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