By Republic Services, Inc.
Second Quarter Total Revenue Growth of 8.6 Percent
Reported Earnings Per Share of $1.62 and Adjusted Earnings Per Share of $1.61
Expanded Both Net Income Margin and Adjusted EBITDA Margin 110 Basis Points
Generated Year-to-Date Cash Flow from Operations of $1.91 Billion and Adjusted Free Cash Flow of $1.15 Billion
Raised 2024 Full-Year Financial Guidance for Earnings and Cash Flow
Increased Quarterly Dividend by Approximately 8 Percent
PHOENIX, July 24, 2024 /PRNewswire/ — Republic Services, Inc. (NYSE: RSG) today reported net income of $511.5 million, or $1.62 per diluted share, for the three months ended June 30, 2024, versus $427.4 million, or $1.35 per diluted share, for the comparable 2023 period. Excluding certain expenses and other items, on an adjusted basis, net income for the three months ended June 30, 2024, was $508.9 million, or $1.61 per diluted share, versus $446.7 million, or $1.41 per diluted share, for the comparable 2023 period.
“We continue to prioritize our differentiating capabilities – Customer Zeal, Digital and Sustainability – to help our customers achieve their operational and sustainability goals, and drive significant value for our stakeholders,” said Jon Vander Ark, president and chief executive officer. “During the second quarter, we delivered double-digit growth in EBITDA and EPS, and expanded EBITDA margin by 110 basis points. Pricing in excess of cost inflation and solid operational execution underpinned strong results across the business. As a result of our performance and outlook for the remainder of the year, we are raising our full-year financial guidance.”
Second-Quarter and Year-to-Date 2024 Highlights:
Second quarter total revenue growth of 8.6 percent includes 5.6 percent organic growth and 3.0 percent growth from acquisitions.
Second quarter core price on total revenue increased revenue by 6.8 percent. Core price on related business revenue increased revenue by 8.1 percent, which consisted of 9.8 percent in the open market and 5.4 percent in the restricted portion of the business.
Second quarter revenue growth from average yield on total revenue was 5.5 percent, and volume decreased revenue by 0.8 percent. Revenue growth from average yield on related business revenue was 6.6 percent, and volume decreased related business revenue by 1.0 percent.
Second quarter net income was $511.5 million, or a margin of 12.6 percent.
Second quarter EPS was $1.62 per share, an increase of 20.0 percent over the prior year.
Second quarter adjusted EPS, a non-GAAP measure, was $1.61 per share, an increase of 14.2 percent over the prior year.
Adjusted EBITDA, a non-GAAP measure, was $1,257.8 million, and adjusted EBITDA margin, a non-GAAP measure, was 31.1 percent of revenue, an increase of 110 basis points over the prior year.
Year-to-date cash invested in acquisitions, including an investment in a post-collection business, was $67.6 million.
Year-to-date cash returned to shareholders was $504.4 million, which included $167.6 million of share repurchases and $336.8 million of dividends paid.
The Company’s average recycled commodity price per ton sold at our recycling centers during the second quarter was $173. This represents an increase of $54 per ton over the prior year.
The Company completed and commenced operations on one renewable natural gas project during the quarter.
Updated Full-Year 2024 Financial Guidance
Republic’s financial guidance is based on current economic conditions and does not assume any significant changes in the overall economy in 2024. Please refer to the Reconciliation of 2024 Financial Guidance section of this document for detail relating to the computation of non-GAAP measures as well as the Information Regarding Forward-Looking Statements section of this document.
The Company provided additional details as follows:
Revenue: Republic expects revenue to be in the range of $16.075 billion to $16.125 billion.
Adjusted EBITDA: Republic expects adjusted EBITDA to be in the range of $4.900 billion to $4.925 billion.
Adjusted Diluted Earnings per Share: The Company expects adjusted diluted earnings per share to be in the range of $6.15 to $6.20.
Adjusted Free Cash Flow: Republic expects adjusted free cash flow to be in the range of $2.150 billion to $2.170 billion.
Company Increases Quarterly Dividend
Republic continues to increase cash returns to shareholders, and announced today that its Board of Directors approved a 4.5-cent increase in the quarterly dividend. The quarterly dividend of $0.58 per share for shareholders of record on October 2, 2024, will be paid on October 15, 2024.
Presentation of Certain Performance Metrics and Non-GAAP Measures
Adjusted diluted earnings per share, adjusted net income – Republic, EBITDA, adjusted EBITDA, adjusted EBITDA margin, adjusted EBITDA by business type, adjusted EBITDA margin by business type and adjusted free cash flow are described in the Performance Metrics and Reconciliations of Certain Non-GAAP Measures section of this document.
About Republic Services
Republic Services, Inc. is a leader in the environmental services industry. Through its subsidiaries, the Company provides customers with the most complete set of products and services, including recycling, solid waste, special waste, hazardous waste and field services. Republic’s industry-leading commitments to advance circularity and support decarbonization are helping deliver on its vision to partner with customers to create a more sustainable world. For more information, please visit RepublicServices.com.
For more information, contact:
Media Inquiries
Investor Inquiries
Roman Blahoski (480) 718-0328
Aaron Evans (480) 718-0309
SUPPLEMENTAL UNAUDITED FINANCIAL INFORMATION
AND OPERATING DATA
REPUBLIC SERVICES, INC.
CONSOLIDATED BALANCE SHEETS
(in millions, except per share amounts)
June 30,
December 31,
2024
2023
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents
$ 490.6
$ 140.0
Accounts receivable, less allowance for doubtful accounts and other of $82.9 and $83.2, respectively
1,817.8
1,768.4
Prepaid expenses and other current assets
351.3
472.6
Total current assets
2,659.7
2,381.0
Restricted cash and marketable securities
178.0
163.6
Property and equipment, net
11,446.5
11,350.9
Goodwill
15,864.9
15,834.5
Other intangible assets, net
463.4
496.2
Other assets
1,321.6
1,183.9
Total assets
$ 31,934.1
$ 31,410.1
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable
$ 1,285.5
$ 1,411.5
Notes payable and current maturities of long-term debt
1,432.9
932.3
Deferred revenue
472.5
467.3
Accrued landfill and environmental costs, current portion
140.5
141.6
Accrued interest
103.1
104.1
Other accrued liabilities
1,099.1
1,171.5
Total current liabilities
4,533.6
4,228.3
Long-term debt, net of current maturities
11,526.8
11,887.1
Accrued landfill and environmental costs, net of current portion
2,332.2
2,281.0
Deferred income taxes and other long-term tax liabilities, net
1,569.2
1,526.8
Insurance reserves, net of current portion
365.8
348.8
Other long-term liabilities
600.2
594.6
Commitments and contingencies
Stockholders’ equity:
Preferred stock, par value $0.01 per share; 50 shares authorized; none issued
—
—
Common stock, par value $0.01 per share; 750 shares authorized; 321.2 and 320.7 issued including shares
held in treasury, respectively
3.2
3.2
Additional paid-in capital
2,932.2
2,900.8
Retained earnings
9,060.7
8,433.9
Treasury stock, at cost; 7.2 and 6.1 shares, respectively
(981.9)
(783.5)
Accumulated other comprehensive loss, net of tax
(9.1)
(12.1)
Total Republic Services, Inc. stockholders’ equity
11,005.1
10,542.3
Non-controlling interests in consolidated subsidiary
1.2
1.2
Total stockholders’ equity
11,006.3
10,543.5
Total liabilities and stockholders’ equity
$ 31,934.1
$ 31,410.1
REPUBLIC SERVICES, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
(in millions, except per share data)
Three Months Ended June 30,
Six Months Ended June 30,
2024
2023
2024
2023
Revenue
$ 4,048.0
$ 3,725.9
$ 7,909.8
$ 7,307.0
Expenses:
Cost of operations
2,382.6
2,224.4
4,665.8
4,393.8
Depreciation, amortization and depletion
413.0
358.3
812.2
717.0
Accretion
26.7
24.5
53.4
48.6
Selling, general and administrative
407.6
396.0
821.7
775.2
Gain on business divestitures and impairments, net
(1.4)
—
(1.4)
—
Restructuring charges
5.7
15.5
11.5
21.0
Operating income
813.8
707.2
1,546.6
1,351.4
Interest expense
(128.3)
(124.4)
(267.6)
(251.1)
Loss on extinguishment of debt
—
—
—
(0.2)
Loss from unconsolidated equity method investments
(33.8)
(3.6)
(42.5)
(2.7)
Interest income
1.6
1.6
3.1
3.0
Other income (loss), net
0.7
(0.6)
13.3
1.9
Income before income taxes
654.0
580.2
1,252.9
1,102.3
Provision for income taxes
142.1
152.6
287.3
290.9
Net income
511.9
427.6
965.6
811.4
Net loss attributable to non-controlling interests in consolidated
subsidiary
(0.4)
(0.2)
(0.3)
(0.2)
Net income attributable to Republic Services, Inc.
$ 511.5
$ 427.4
$ 965.3
$ 811.2
Basic earnings per share attributable to Republic Services, Inc.
stockholders:
Basic earnings per share
$ 1.62
$ 1.35
$ 3.06
$ 2.56
Weighted average common shares outstanding
314.9
316.8
315.1
316.8
Diluted earnings per share attributable to Republic Services, Inc.
stockholders:
Diluted earnings per share
$ 1.62
$ 1.35
$ 3.06
$ 2.56
Weighted average common and common equivalent shares
outstanding
315.2
317.3
315.5
317.2
Cash dividends per common share
$ 0.535
$ 0.495
$ 1.070
$ 0.990
REPUBLIC SERVICES, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions)
Six Months Ended June 30,
2024
2023
Cash provided by operating activities:
Net income
$ 965.6
$ 811.4
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation, amortization, depletion and accretion
865.6
765.6
Non-cash interest expense
34.9
45.1
Stock-based compensation
21.8
21.4
Deferred tax provision
47.5
33.4
Provision for doubtful accounts, net of adjustments
19.9
19.7
Loss on extinguishment of debt
—
0.2
Gain on disposition of assets and asset impairments, net
(0.3)
(4.7)
Loss (gain) from unconsolidated equity method investments
42.5
2.7
Other non-cash items
(0.4)
(1.5)
Change in assets and liabilities, net of effects from business acquisitions and divestitures:
Accounts receivable
(69.4)
(52.0)
Prepaid expenses and other assets
36.2
138.5
Accounts payable
19.5
35.1
Capping, closure and post-closure expenditures
(22.2)
(24.5)
Remediation expenditures
(26.7)
(21.2)
Other liabilities
(47.3)
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