Republic Services(RSG)
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Republic Services(RSG) - 2024 Q1 - Quarterly Results
2024-04-30 20:05
EXHIBIT 99.1 Republic Services, Inc. Reports First Quarter 2024 Results PHOENIX (April 30, 2024) – Republic Services, Inc. (NYSE: RSG) today reported net income of $453.8 million, or $1.44 per diluted share, for the three months ended March 31, 2024, versus $383.9 million, or $1.21 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 March 31, 2024 was $458.1 million, or $1.45 per diluted share, versus $393 ...
Republic Services(RSG) - 2023 Q4 - Annual Report
2024-02-29 02:48
Financial Performance - Revenue for the year ended December 31, 2023, was $14,964.5 million, an increase of 10.8% from $13,511.3 million in 2022[445] - Net income attributable to Republic Services, Inc. for 2023 was $1,731.0 million, up 16.3% from $1,487.6 million in 2022[445] - Basic earnings per share for 2023 increased to $5.47, compared to $4.70 in 2022, reflecting a growth of 16.4%[445] - Comprehensive income attributable to Republic Services, Inc. was $1,731.0 million in 2023, compared to $1,490.1 million in 2022, reflecting a growth of 16.2%[447] - The company reported a comprehensive income of $1,731.4 million for 2023, up from $1,490.1 million in 2022, indicating a strong performance[447] Assets and Liabilities - Total assets as of December 31, 2023, were $31,410.1 million, compared to $29,052.9 million in 2022, representing an increase of 8.1%[443] - The company's total current liabilities increased to $4,228.3 million in 2023 from $3,390.7 million in 2022, a rise of 24.6%[443] - Long-term debt, net of current maturities, was $11,887.1 million as of December 31, 2023, compared to $11,329.5 million in 2022, indicating an increase of 4.9%[443] - The carrying value of total debt as of December 31, 2023, is $12,819.4 million, an increase from $11,785.5 million in 2022[590] Cash Flow and Dividends - Cash provided by operating activities increased to $3,617.8 million in 2023, up from $3,190.0 million in 2022, representing a growth of 13.4%[453] - Cash dividends declared in 2023 amounted to $650.0 million, an increase from $603.4 million in 2022[450] - Cash dividends paid increased to $638.1 million in 2023, compared to $592.9 million in 2022, marking a rise of 7.6%[453] - The company reported a cash dividend per common share of $2.06 for 2023, up from $1.91 in 2022, marking an increase of 7.9%[445] Environmental and Landfill Costs - The carrying value of the company's landfill final capping, closure, and post-closure costs totaled $1,937.2 million as of December 31, 2023[427] - The total estimated future payments for final capping, closure, and post-closure liabilities as of December 31, 2023, amount to $7,518.4 million, with $7,020.0 million expected thereafter[582] - The company recorded reserves for landfill and environmental costs, which may not be adequate to cover future regulatory changes or unforeseen environmental conditions[145] - Total accrued landfill and environmental costs rose from $2,273.9 million in 2022 to $2,422.6 million in 2023, reflecting an increase of 6.5%[580] Debt and Interest Rates - The company had $2,232.2 million of principal floating rate debt as of December 31, 2023, with interest rate swap contracts totaling a notional value of $350.0 million[407] - A 100 basis point change in interest rates on the company's variable rate debt would result in an annualized interest expense change of approximately $20 million[407] - Future principal maturities of debt include $932.3 million in 2024 and $1,364.5 million in 2025, totaling $12,819.4 million[592] Acquisitions and Investments - The company acquired various environmental services businesses, with total cash used in acquisitions amounting to $1,756.3 million in 2023, down from $2,668.6 million in 2022[552] - The company invested approximately $68 million in a joint venture for renewable natural gas projects in 2023, increasing its total investment in the venture to approximately $170 million[560] - The company completed the acquisition of Central Texas Refuse, LLC in December 2023, allowing re-entry into the high-growth Austin market[559] Insurance and Risk Management - The company maintains various insurance policies to cover potential liabilities, but there is a risk that such coverage may not be adequate in the event of a major loss[146] - The balance of insurance reserves increased from $502.6 million in 2022 to $565.4 million in 2023, marking a growth of 12.5%[576] Goodwill and Intangible Assets - The company reported goodwill of $15,834.5 million as of December 31, 2023, up from $14,451.5 million in 2022, reflecting acquisitions and adjustments[566] - Other intangible assets are amortized on a straight-line basis over periods ranging from 1 to 15 years, reflecting the company's long-term investment in customer relationships and trade names[510] - Customer relationships represented the largest component of intangible assets at $631.7 million, with a decrease of $579.1 million due to amortization[568] Operational Efficiency - The company reported depreciation, amortization, and depletion of property and equipment totaling $1,368.4 million in 2023, compared to $1,245.6 million in 2022[565] - The company capitalizes landfill costs, including expenditures for land, permitting, and cell construction, which are depleted as airspace is consumed[488] Regulatory and Compliance - The company maintained effective internal control over financial reporting as of December 31, 2023, based on COSO criteria[434] - The adoption of ASU 2022-04 on January 1, 2023, did not have a material impact on the consolidated financial statements, indicating effective compliance with new accounting standards[545]
Republic Services(RSG) - 2023 Q4 - Earnings Call Transcript
2024-02-28 01:51
Financial Data and Key Metrics Changes - In 2023, the company achieved revenue growth of 11%, with 5% attributed to acquisitions [9] - Adjusted EBITDA grew by 13%, and the adjusted EBITDA margin expanded by 60 basis points, with a 100 basis point margin expansion in the underlying business [9][27] - Adjusted earnings per share were reported at $5.61, and adjusted free cash flow was $1.99 billion [9][28] - Total debt at the end of the year was $13 billion, with total liquidity of $2.7 billion and a leverage ratio of 2.9 times [28] Business Line Data and Key Metrics Changes - Core price on total revenue was 7.2% in Q4, while core price on related revenue was 8.8% [24] - Volume on total revenue increased by 30 basis points, with related revenue volume increasing by 40 basis points [25] - Environmental Solutions revenue was flat compared to the prior year, but adjusted EBITDA margin for this segment increased by 250 basis points to 19.7% [50] Market Data and Key Metrics Changes - Commodity prices for recycling were $131 per ton in Q4, up from $88 per ton in the prior year, while full-year commodity prices averaged $117 per ton compared to $170 per ton in the previous year [26] - The company expects organic volume growth in a range of flat to positive 50 basis points for 2024 [49] Company Strategy and Development Direction - The company plans to deliver outsized profitable growth in 2024, with expected revenue in the range of $16.1 billion to $16.2 billion [14] - Investments in sustainability, including electric vehicles and renewable natural gas projects, are seen as platforms for profitable growth [12][13] - The company aims to invest at least $500 million in value-creating acquisitions in 2024, with a focus on both recycling and waste and Environmental Solutions [47] Management's Comments on Operating Environment and Future Outlook - Management expressed a cautious macro perspective due to high interest rates and depressed housing activity, but noted positive underlying demand signals for the business [154] - The company anticipates a sequential step down in margins from Q4 to Q1, influenced by seasonal factors and weather conditions [89] Other Important Information - The company returned $900 million to shareholders through dividends and share repurchases [19] - Employee engagement improved to a score of 86, with 99% participation in the survey [45] Q&A Session Summary Question: Can you provide insights on margin performance and expectations for 2024? - Management noted that margin expansion was stronger than anticipated, driven by effective management of the P&L and favorable conditions in Q4 [31][56] Question: What is the outlook for Environmental Solutions and margin expansion? - Management expects balanced margin expansion between solid waste and Environmental Solutions, with a slight edge towards Environmental Solutions [62] Question: Can you discuss the impact of M&A on future performance? - The company plans to remain disciplined in M&A, focusing on strategic fit and financial returns, while also managing integration effectively [92][95] Question: How is the company addressing cost inflation and labor turnover? - Management highlighted improvements in labor turnover and cost management, with a focus on maintaining productivity despite challenges [117][139] Question: What are the expectations for fleet electrification and supply chain issues? - The company is optimistic about fleet electrification, with plans to increase the number of electric vehicles significantly in the coming years [164][170]
Republic Services(RSG) - 2023 Q4 - Annual Results
2024-02-27 21:09
EXHIBIT 99.1 Republic Services, Inc. Reports Fourth Quarter and Full-Year 2023 Results; Provides 2024 Full-Year Financial Guidance PHOENIX (February 27, 2024) – Republic Services, Inc. (NYSE: RSG) today reported net income of $439.6 million, or $1.39 per diluted share, for the three months ended December 31, 2023, versus $346.8 million, or $1.09 per diluted share, for the comparable 2022 period. Excluding certain expenses and other items, on an adjusted basis, net income for the three months ended December ...
Republic Services(RSG) - 2023 Q3 - Quarterly Report
2023-10-27 01:45
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _________________________________________________________ FORM 10-Q _________________________________________________________ (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 Table of Contents (I.R.S. Employer Identification No.) or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transi ...
Republic Services(RSG) - 2023 Q3 - Earnings Call Transcript
2023-10-26 22:22
Financial Data and Key Metrics Changes - The company reported a revenue growth of 6% for Q3 2023, with 2% attributed to acquisitions, and adjusted EBITDA growth of 9% [32] - Adjusted earnings per share (EPS) was reported at $1.54, with a year-to-date adjusted free cash flow of $1.8 billion [32][41] - The total debt stood at $12 billion, with total liquidity of $2.3 billion and a leverage ratio of 2.9 times [18] Business Line Data and Key Metrics Changes - The Environmental Solutions business saw a revenue increase of $8 million year-over-year, contributing 40 basis points to internal growth [17] - The adjusted EBITDA margin for the Environmental Solutions business improved to 22.7%, a 390 basis point increase compared to the prior year [34][41] - Core price on total revenue was 7%, with core price on related revenue at 8.6%, including open market pricing of 10.4% [39] Market Data and Key Metrics Changes - The company experienced a 10 basis point increase in total revenue volume, with landfill revenue driven by an 8.2% increase in special waste revenue [16] - Recycling commodity prices averaged $112 per ton during the quarter, down from $162 per ton in the prior year, with a current average of approximately $120 per ton [40][41] Company Strategy and Development Direction - The company is focused on profitable growth through acquisitions, having invested $947 million year-to-date in the recycling and waste space [9] - Future growth is expected in the recycling and waste and Environmental Solutions businesses, supported by pricing strategies and cross-selling opportunities [20] - The company is advancing its digital capabilities to improve customer and employee experiences, with ongoing investments in sustainability innovation [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in exceeding $1 billion in investments for the year and reaffirmed guidance for the full year [33][44] - The company anticipates continued growth in 2024, with a positive outlook despite economic uncertainties [78] - Management noted that the underlying volume growth in the recycling and solid waste business is expected to be between 50 to 100 basis points [78] Other Important Information - The company has been recognized as a great place to work for seven consecutive years, indicating strong employee engagement [15] - The construction of the Las Vegas Polymer Center is substantially complete, with operations expected to begin in November [37] Q&A Session Summary Question: Can you size the benefits from improved equipment availability and retention? - Management noted improvements in maintenance costs and labor availability, but supply chain issues persist [47] Question: How is the M&A market within Environmental Solutions? - Management indicated a strong pipeline of opportunities, remaining optimistic about attractive acquisitions [50] Question: What is the outlook for pricing in Environmental Solutions? - Pricing remains strong, with expectations for a sequential decrease in restricted base pricing in 2024 [51] Question: How is the company managing exposure to commodity prices? - The company is focused on a processing and fee-based model, minimizing exposure to commodity price volatility [56] Question: How is the company weathering the impact of strikes in the automotive industry? - Management reported reasonable performance despite some slowdown in activity, with minimal impact on service cancellations [60] Question: What is the expected M&A rollover benefit for 2024? - The company expects about 50 basis points of rollover from closed transactions into 2024 [76] Question: What are the financial targets for renewable natural gas facilities? - The company anticipates incremental EBITDA contributions of $20 million to $25 million per year starting in 2024 [103]
Republic Services(RSG) - 2023 Q2 - Quarterly Report
2023-08-01 01:46
Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _________________________________________________________ FORM 10-Q _________________________________________________________ (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number ...
Republic Services(RSG) - 2023 Q2 - Earnings Call Transcript
2023-08-01 01:27
Financial Data and Key Metrics Changes - The company reported a revenue growth of 9%, with over 4% attributed to acquisitions, and adjusted EBITDA growth of 10.5% [54] - Adjusted EBITDA margin expanded by 40 basis points to 30% during the quarter [61] - Adjusted earnings per share were reported at $1.41, and adjusted free cash flow increased by 10% year-to-date to $1.26 billion [54][86] Business Line Data and Key Metrics Changes - The Environmental Solutions business saw revenue increase by $104 million year-over-year, primarily due to the acquisition of U.S. Ecology, with an adjusted EBITDA margin of 22.5% [85] - Core price on related revenue was 8.8%, with an average yield on related revenue of 7.1% [84] - Volume on total revenue increased by 40 basis points, while volume on related revenue increased by 50 basis points, driven by increases in small containers, residential, and landfill services [50] Market Data and Key Metrics Changes - Commodity prices for recycling were reported at $119 per ton, down from $218 per ton in the prior year, with expectations for average recycled commodity prices to remain between $110 and $115 per ton for the full year [60] - The company experienced a 3.7% increase in landfill revenue, primarily driven by an 8.3% increase in special waste revenue [50] Company Strategy and Development Direction - The company plans to exceed $1 billion in value-creating acquisitions for the year, with a strong pipeline for both recycling and solid waste and Environmental Solutions businesses [45] - The company is focusing on sustainability investments, including the Blue Polymers joint venture, which aims to enhance plastic circularity [48] - The company aims to maintain disciplined pricing strategies while expanding its Environmental Solutions business and leveraging cross-selling opportunities [79] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving double-digit topline growth in the medium term, driven by pricing discipline and organic growth in the solid waste and recycling business [12][13] - The company anticipates a relatively flat volume environment in the second half of the year, reflecting caution due to construction market conditions [124] - Management noted that inflation in cost categories is expected to moderate in the second half of the year, allowing for a favorable price-cost spread [101] Other Important Information - The company achieved over $40 million in annualized cost synergies, contributing to improved margins [55] - Total debt was reported at $12.2 billion, with total liquidity of $2.1 billion and a leverage ratio of approximately 3x [62] Q&A Session Summary Question: Can you expand on the visibility for double-digit topline growth? - Management indicated that growth will be driven by pricing, organic growth, and M&A contributions, with a disciplined approach to pricing [12][13] Question: What is the expected EBITDA impact from the Polymer Center in 2024? - The expected contribution from the Polymer Center is $15 million in 2024, with incremental growth expected in subsequent years [33] Question: Are there signs of price competition from smaller players? - Management noted that while there is always some competition, they have not seen a significant negative trend in pricing or volume [35][97] Question: How does the company view the impact of PFAS remediation? - Management sees PFAS remediation as a net positive opportunity, with ongoing discussions about solutions and customer needs [129] Question: What is the expected contribution from M&A in the new revenue guidance? - Management indicated that M&A is expected to contribute closer to 3.5% to 4% to revenue growth, with a strong pipeline for future acquisitions [106]
Republic Services(RSG) - 2023 Q1 - Earnings Call Transcript
2023-04-28 03:13
Financial Data and Key Metrics - Revenue growth of 21% in Q1, including 11% from acquisitions, with adjusted EPS of $1.24 and adjusted free cash flow of $496 million [30] - Adjusted EBITDA margin for the Environmental Solutions business improved to 20.6%, a sequential increase of 350 basis points [47] - Total company adjusted EBITDA margin for Q1 was 29%, compared to 30.4% in the prior year [47] - Core price on total revenue was 8.2%, with related revenue at 9.3% [46] - Volume on total revenue increased 1.6%, while volume on related revenue increased 1.8% [46] - Recycling commodity prices were $105 per ton in Q1, compared to $201 per ton in the prior year, with current prices at $115 per ton [17] Business Line Performance - Environmental Solutions revenue increased by $309 million YoY, primarily due to the acquisition of US Ecology, contributing 50 basis points to internal growth on a same-store basis [28] - Cross-selling efforts in Environmental Solutions generated over $60 million in new sales, with $40 million in annualized cost savings achieved [12] - Over 75% of residential routes are operating with RISE tablets, with full deployment expected by mid-year [13] - Landfill revenue increased by 21.7%, driven by special waste [46] Market Performance - Volume growth was broad-based across market verticals and geographies [31] - Pricing actions were well-accepted, with minimal customer defection [12] - Recycling processing and commodity sales decreased revenue by 90 basis points during the quarter [17] Strategic Direction and Industry Competition - The company is focused on integrating US Ecology and improving the profitability of its Environmental Solutions business [12] - Investments in sustainability include scaling the electric fleet, with prototypes expected later this year and full-scale deployment by 2025 [44] - The company is leveraging digital capabilities to enhance customer experience and service offerings [13] - The acquisition pipeline remains strong, with opportunities for over $500 million in value-creating acquisitions in 2023 [30] Management Commentary on Operating Environment and Future Outlook - Management remains cautiously optimistic about the demand environment, with strong growth in pricing and volume [23] - The company expects commodity prices to recover in the second half of the year as global supply/demand imbalances correct [17] - Employee engagement is high, with turnover rates below 2019 levels, improving the ability to capitalize on growth opportunities [26] - The company is well-positioned to navigate potential economic uncertainties, with a focus on pricing ahead of cost inflation [23] Other Important Information - The company was named to Barron's 100 Most Sustainable Companies list, Ethisphere's World's Most Ethical Companies list, and Fortune's list of the World's Most Admired Companies [26] - The company is investing in renewable natural gas projects, with six expected to commence operations this year [122] - The combined tax rate and effects from solar investments resulted in a tax impact of 26.3% during Q1, in line with expectations [120] Q&A Session Summary Question: M&A Pipeline and Distribution Across Businesses [4] - The pipeline for M&A remains strong, with a focus on recycling, solid waste, and environmental solutions businesses [30] Question: Employee Turnover and Recruitment Trends [10] - Turnover is down, and employee engagement is high, with recruitment improving significantly in the last 4-5 months [10] Question: Pricing and Cost Inflation [54] - Unit cost inflation is expected to be around 6%, higher than the initial guidance of 5.5%, driven by factors like truck delivery costs [54] Question: Environmental Solutions Margin Improvement [55] - The company aims to improve Environmental Solutions margins from low 20% to 30% over the long term [55] Question: Special Waste Sensitivity to Recession [115] - Special waste volumes are less sensitive to economic downturns, as most projects are essential and not discretionary [100] Question: PFAS Regulation Impact [126] - The company sees PFAS regulation as an opportunity, with potential to pass regulatory costs to customers [132] Question: Electrification Progress [127] - The company is on track with its electrification strategy, with over 20 trucks electrified and plans to scale up to several hundred by 2025 [68] Question: Free Cash Flow Conversion [138] - The company aims to improve free cash flow conversion to the high 40% range, despite headwinds like interest expense and bonus depreciation expiration [138] Question: Competitive Dynamics and M&A Opportunities [139] - Smaller competitors may face challenges in financing and expanding due to supply chain issues, creating opportunities for the company [139] Question: Environmental Services Cyclicality [136] - The company is working to make Environmental Services less cyclical by integrating offerings and building closer customer relationships [137] Question: Price and Cost Spread in 2024 [98] - The company expects to maintain a 30-50 basis point margin expansion in 2024, pricing ahead of cost inflation [80] Question: Special Waste Revenue Growth [105] - Special waste revenue growth is driven by cross-sell opportunities and strong demand in the Environmental Solutions business [105] Question: Commodity Price Recovery [88] - Commodity prices are expected to recover, with a full-year average of $125 per ton, in line with initial expectations [88] Question: Margin Bridge and Seasonality [151] - The company outperformed normal seasonality in Q1, with margin improvements driven by pricing and cost management [151] Question: Organic Growth Composition in Environmental Services [159] - Organic growth in Environmental Services is driven by both pricing and volume, similar to the broader business [160] Question: Price Cadence for the Year [173] - The company expects price increases to moderate in the second half of the year, with a focus on maintaining a positive price/cost spread [124]
Republic Services(RSG) - 2023 Q1 - Quarterly Report
2023-04-27 23:11
Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _________________________________________________________ FORM 10-Q _________________________________________________________ (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Numbe ...