Republic Services(RSG)
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Republic Services(RSG) - 2022 Q4 - Annual Report
2023-02-23 01:23
Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 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: 1-14267 REPUBLIC SERVICES, INC. (Exact Name of Registrant as Specified in its Charter) __________________ ...
Republic Services(RSG) - 2022 Q4 - Earnings Call Transcript
2023-02-16 03:57
Financial Data and Key Metrics Changes - In 2022, the company achieved a revenue growth of 20%, with 10% attributed to acquisitions [1] - Adjusted EBITDA grew by 16%, and adjusted earnings per share increased by 18% to $4.93 [1] - Adjusted free cash flow reached $1.74 billion, marking a 15% increase from the previous year [1][40] - Total debt at the end of the year was $11.9 billion, with total liquidity of $1.7 billion [16] Business Line Data and Key Metrics Changes - The Environmental Solutions business saw a revenue increase of approximately $320 million, primarily due to the acquisition of US Ecology [38] - The adjusted EBITDA margin for the Recycling and Solid Waste business was 28.7%, a slight increase from 28.6% in the prior year [14] - The company expects organic volume growth in 2023 to be in the range of 50 basis points to 1% [12] Market Data and Key Metrics Changes - Core price on related revenue increased to 8.4%, with average yield on related revenue rising to 6.7% [6][36] - Current commodity prices are approximately $95 per ton, with expectations for recovery in the second half of the year [37] - The company anticipates a decrease in full-year 2023 revenue and EBITDA of $45 million due to expected commodity price changes [13] Company Strategy and Development Direction - The company is focused on sustainability as a core strategy, leveraging it for profitable growth [33] - Investments in polymer centers and renewable natural gas projects are progressing well, with the first center in Las Vegas expected to come online in late 2023 [135] - The company plans to invest at least $500 million in value-creating acquisitions in 2023 [160] Management's Comments on Operating Environment and Future Outlook - Management expects high single-digit growth in revenue, EBITDA, and free cash flow for 2023 despite headwinds from lower recycled commodity prices and higher interest rates [35] - The company is mindful of potential recession talks but sees strength in the industrial market and consumer engagement [54] - Management indicated that the majority of EPS growth in 2023 is expected to be back-end loaded due to challenging comparisons in the first half [17] Other Important Information - The company returned nearly $800 million to shareholders through dividends and share repurchases [4] - The customer retention rate remained strong at 94%, with the highest NPS scores recorded at the end of 2022 [5] - Full-year SG&A expenses were 10.2% of revenue, reflecting continued cost management [39] Q&A Session Summary Question: What is the expected pricing trend for 2023? - Management expects restricted pricing to increase by 50 to 100 basis points in 2023, with total pricing remaining above 5% in all quarters [20][21] Question: Can you provide details on the US Ecology acquisition performance? - The revenue contribution from US Ecology outperformed expectations by nearly $50 million, primarily due to quicker integration activities [2][26] Question: What are the expectations for commodity prices in 2023? - The company anticipates average recycled commodity prices of $125 per ton in 2023, starting at $95 per ton in the first quarter [162] Question: How does the company view the current market environment? - Management acknowledges ongoing inflation and supply chain challenges but remains optimistic about pricing power and customer willingness to pay [230][201] Question: What is the outlook for residential volumes in 2023? - Management expects residential volumes to remain positive throughout 2023, despite some softness in the construction market [100][211]
Republic Services(RSG) - 2022 Q3 - Earnings Call Transcript
2022-10-28 02:32
Financial Data and Key Metrics Changes - Revenue growth of 23% in Q3 2022, with over 12% attributed to acquisitions [9] - Adjusted earnings per share increased by 20% to $1.34 compared to the prior year [9] - Adjusted free cash flow for the year-to-date reached over $1.6 billion, a 23% increase year-over-year [9][23] - Total debt stood at $11.8 billion with total liquidity of $1.9 billion [25] Business Line Data and Key Metrics Changes - Environmental Solutions revenue increased by $343 million year-over-year, primarily due to the acquisition of US Ecology [21] - Adjusted EBITDA margin for Environmental Solutions was 18.7%, a sequential increase of 160 basis points [21] - Total company adjusted EBITDA margin for Q3 was 29.2%, down from 30.5% in the prior year [22] Market Data and Key Metrics Changes - Organic volume growth of 2.2% during Q3, with increases across various segments [12][18] - Commodity prices for recycling were $162 per ton in Q3, down from $230 per ton in the prior year, with a forecast of $90 per ton for Q4 [19][20] - Customer retention rate remained strong at over 94% [18] Company Strategy and Development Direction - The company is focused on value-creating acquisitions, having invested $2.6 billion year-to-date, including US Ecology [10] - Continued emphasis on digital capabilities and sustainability initiatives, including renewable gas projects and polymer centers [13][14] - Plans to provide detailed 2023 guidance in the fourth quarter earnings call in February [29] Management's Comments on Operating Environment and Future Outlook - Management remains confident in the ability to price ahead of cost inflation despite headwinds from rising interest rates and commodity prices [28][29] - The fundamentals of the business are strong, with expectations for above-average growth in revenue, EBITDA, and free cash flow [29] - Management acknowledges potential economic pullbacks but maintains a positive outlook on volume growth [41] Other Important Information - The company returned $640 million to shareholders through dividends and share repurchases year-to-date [11] - The integration of US Ecology is progressing as planned, with expected cost synergies of at least $40 million [10] Q&A Session Summary Question: Progress on US Ecology integration and pricing actions - Integration is going well, with positive market reception to pricing actions on disposal and field services [32] Question: Sustainability of strong volume growth - Volume remains strong, with expectations for some moderation in growth rates due to economic conditions [41] Question: Impact of commodity prices on revenue and profitability - A decrease in commodity prices could lead to a significant revenue and EBITDA impact, but the company has strategies to mitigate this [44][48] Question: Interest expense and free cash flow conversion outlook - Anticipated increases in interest expense due to rising rates, but strong growth in revenue and EBITDA is expected to offset this [52][89] Question: Cross-selling opportunities and timeline - The company is on track to achieve cross-selling targets by 2024, with optimism about progress [77] Question: Pricing pushback from customers - No significant pushback observed; pricing remains at elevated levels [104]
Republic Services(RSG) - 2022 Q3 - Quarterly Report
2022-10-28 01:58
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 September 30, 2022 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 N ...
Republic Services(RSG) - 2022 Q2 - Earnings Call Transcript
2022-08-05 03:15
Financial Data and Key Metrics Changes - Revenue growth of 21% year-over-year, with adjusted earnings per share of $1.32, also a 21% increase from the prior year [11][10] - Adjusted free cash flow exceeded $1.1 billion year-to-date, representing a 14% increase compared to the previous year [11][30] - Adjusted EBITDA margin for the second quarter was 29.6%, down from 30.6% in the prior year [26] Business Line Data and Key Metrics Changes - Organic volume growth of 2.4%, with increases in small containers (2.8%), large containers (2%), and landfill (5.7%) [14][23] - Environmental solutions revenue increased by $260 million year-over-year, primarily due to the acquisition of US Ecology [24] - Adjusted EBITDA margin for the environmental solutions segment was 17.1% [26] Market Data and Key Metrics Changes - Core price reached an all-time high of 6.2%, with average yield on total revenue increasing to 5% [15][21] - Recycling commodity prices rose to $218 per ton, compared to $170 per ton in the prior year [23] Company Strategy and Development Direction - The company plans to invest over $600 million in acquisitions apart from US Ecology, focusing on recycling and solid waste [14] - The integration of US Ecology is progressing well, with expectations of achieving at least $40 million in cost synergies [12][13] - The company aims to create a more sustainable world, with a reported 9% decrease in greenhouse gas emissions from the 2017 baseline [18][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in pricing exceeding internal cost inflation, projecting adjusted EPS in the range of $4.77 to $4.80 for the full year [16][15] - The company anticipates continued double-digit EBITDA growth year-over-year, with a guidance of approximately 29.3% adjusted EBITDA margin for the full year [29][16] - Management acknowledged higher than expected inflationary pressures but remains optimistic about pricing strategies [15][16] Other Important Information - Total debt stood at $12 billion, with total liquidity of $1.6 billion and a leverage ratio of approximately 3.3 times [32] - The company returned $495 million to shareholders through dividends and share repurchases year-to-date [14] Q&A Session Summary Question: Pricing expectations for the remainder of the year - Management indicated strong pricing momentum and expects continued elevated pricing due to macroeconomic factors and service differentiation [37] Question: Integration of US Ecology and surprises - Management expressed satisfaction with the integration process, noting higher retention rates and positive cultural alignment [38] Question: Tailwinds for 2023 from landfill gas investments - Management stated that contributions from landfill gas projects will be limited in 2023, with more significant impacts expected in 2024 and beyond [50] Question: Margin performance and inflation impact - Management noted that margin expansion in 2023 will depend on labor market conditions and pricing strategies [52] Question: Revenue contribution from acquisitions - Management confirmed that acquisitions are expected to contribute approximately 9.3% to revenue, with US Ecology included [89] Question: Capital allocation strategy - Management indicated a balanced approach to debt repayment and acquisitions, with a focus on reducing leverage [97]
Republic Services(RSG) - 2022 Q2 - Quarterly Report
2022-08-05 01:19
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, 2022 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) - 2022 Q1 - Earnings Call Transcript
2022-05-06 03:49
Republic Services, Inc. (NYSE:RSG) Q1 2022 Earnings Conference Call May 5, 2022 5:00 PM ET Company Participants Stacey Mathews - VP, IR Jon Vander Ark - President and CEO Brian DelGhiaccio - EVP and CFO Conference Call Participants Tyler Brown - Raymond James Toni Kaplan - Morgan Stanley Michael Hoffman - Stifel Jerry Revich - Goldman Sachs Kevin Chiang - CIBC Sean Eastman - KeyBanc Capital Markets Noah Kaye - Oppenheimer Mike Calleja - Bank of America Stephanie Yee - JPMorgan Operator Good day, and welcome ...
Republic Services(RSG) - 2022 Q1 - Quarterly Report
2022-05-06 00:21
For the transition period from to 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, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Numbe ...
Republic Services(RSG) - 2021 Q4 - Earnings Call Transcript
2022-02-11 03:55
Republic Services, Inc. (NYSE:RSG) Q4 2021 Earnings Conference Call February 10, 2022 5:00 PM ET Company Participants Stacey Mathews - Vice President of Investor Relations Jon Vander Ark - President and Chief Executive Officer Brian DelGhiaccio - Executive Vice President and Chief Financial Officer Conference Call Participants Noah Kaye - Oppenheimer & Co. Inc. Jerry Revich - Goldman Sachs Group, Inc. Tyler Brown - Raymond James & Associates, Inc. Michael Hoffman - Stifel, Nicolaus & Company, Inc. Walter S ...
Republic Services(RSG) - 2021 Q4 - Annual Report
2022-02-11 02:43
Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 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: 1-14267 REPUBLIC SERVICES, INC. (Exact Name of Registrant as Specified in its Charter) __________________ ...