Waste Management, Inc. today announced financial results for its quarter ended March 31, 2014. Revenues for the first quarter of 2014 were $3.40 billion compared with $3.34 billion for the same 2013 period. Net income for the quarter was $228 million, or $0.49 per diluted share, compared with $168 million, or $0.36 per diluted share, for the first quarter of 2013. In the first quarter of 2013, adjusted net income was $186 million, or $0.40 per diluted share.
David P. Steiner, President and Chief Executive Officer of Waste Management, commented, We saw continued and strong momentum in both yield and cost controls in the first quarter of 2014 that helped drive a more than 35% improvement in reported net income, and more than 22% growth in earnings per share when looking at first quarter 2013 adjusted results. We also saw an increase of 170 basis points in our reported income from operations margin, or 140 basis points when compared to our first quarter 2013 adjusted results. Our yield was 2.6%, the highest level since 2011 and the fourth consecutive quarter over 2.0%. We also achieved SG&A cost savings of $15 million compared to the first quarter of 2013. During the first quarter, our net cash provided by operations improved to $584 million, our capital expenditures were constant at $266 million, and we had $166 million of divestiture proceeds, all of which resulted in free cash flow of $484 million, our highest amount since 2008.
Revenue increased by 1.8%, or $60 million; excluding a negative $17 million in foreign currency translation, revenue would have increased 2.3%. Internal revenue growth from yield for collection and disposal operations was 2.6%. Core price, which consists of price increases and fees, other than the Company s fuel surcharge, net of rollbacks, was 4.2%, up from 3.2% in the first quarter of 2013. Internal revenue growth from volume was negative 1.8%, a 40 basis point sequential improvement from the fourth quarter of 2013. Average recycling commodity prices were approximately 1.8% lower in the first quarter of 2014 compared with the prior year period. In total, recycling operations negatively affected earnings by less than $0.01 per diluted share when compared to the prior year period. Operating expenses increased by $23 million compared to the prior year period. The majority of the increase relates to operating costs within acquired operations, primarily the Company s Montreal acquisition. As a percent of revenue, operating expenses were 65.7% in the first quarter of 2014, as compared to 66.2% in the first quarter of 2013, an improvement of 50 basis points. SG&A expenses improved by $15 million compared with the first quarter of 2013 and improved to 11.0% of revenue from 11.7% in the prior year period.