‚ Share Repurchases. If we are unable to identify opportunities that satisfy our growth strategy, we
intend to continue to use our free cash Öow to repurchase shares of our common stock at prices that
provide value to our stockholders. As of December 31, 2004, we had repurchased a total of 35.2 million
shares, or approximately 20% of our common stock outstanding at the commencement of our share
repurchase program in 2000, for $750.4 million. In October 2004, our board of directors authorized the
repurchase of up to an additional $275.0 million of our common stock, of which $274.6 million
remained available at December 31, 2004. We believe that our share repurchase program will continue
to enhance stockholder value.
‚ Dividends. In July 2003, our board of directors initiated a quarterly cash dividend of $.06 per share.
EÅective October 2004, our quarterly cash dividend was increased to $.12 per share. We may consider
increasing our quarterly cash dividend if we believe it will enhance stockholder value.
‚ Minimize Borrowings. To the extent that the opportunities to enhance stockholder value mentioned
above are not available, we also intend to continue to use our free cash Öow to minimize our
borrowings.
Another key component of our Ñnancial strategy includes maintaining an investment grade rating on our
senior debt. This has allowed us to secure favorable, long-term, Ñxed-rate Ñnancing that reduces our exposure
to changing interest rates. This has also allowed us, and will continue to allow us, to readily access capital
markets.
For certain risks related to our Ñnancial strategy, see ""Risk Factors.''
Operating Strategy
We seek to leverage existing assets and revenue growth to increase operating margins and enhance
stockholder value. Our operating strategy to accomplish this goal is to:
‚ utilize the extensive industry knowledge and experience of our executive management,
‚ utilize a decentralized management structure in overseeing day-to-day operations,
‚ integrate waste operations,
‚ improve operating margins through economies of scale, cost eÇciencies and asset utilization,
‚ achieve high levels of customer satisfaction, and
‚ utilize systems to improve consistency in Ñnancial and operational performance.
For certain risks related to our operating strategy, see ""Risk Factors.''
‚Experienced Executive Management Team. We believe that we have one of the most experienced
executive management teams in the solid waste industry.
James E. O'Connor, who has served as our Chief Executive OÇcer since December 1998, also
became our Chairman in January 2003. He worked at Waste Management, Inc. from 1972 to 1978 and
from 1982 to 1998. During that time, he served in various management positions, including Senior Vice
President in 1997 and 1998, and Area President of Waste Management of Florida, Inc. from 1992 to
1997. Mr. O'Connor has over 30 years of experience in the solid waste industry.
Michael J. Cordesman, who has served as our Chief Operating OÇcer since March 2002 and also as
our President since February 2003, has over 24 years of experience in the solid waste industry. He
joined us in June 2001 as our Eastern Region Vice President. From 1999 to 2001, Mr. Cordesman
served as Vice President of the Central Region for Superior Services Inc. From 1980 to 1999, he served
in various positions with Waste Management, including Vice President of the Mid-Atlantic Region
from 1992 to 1999.
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