Core Insights - Brown Gibbons Lang & Company (BGL) announced the sale of Shamrock Environmental, a leading vertically integrated industrial waste and wastewater services platform, to Republic Services, Inc. [1][3][4] Company Overview - Shamrock Environmental, founded in 1994 and headquartered in Browns Summit, North Carolina, operates a network of highly permitted facilities and provides services across more than 20 states [5]. - Republic Services, headquartered in Phoenix, Arizona, is one of the largest waste management and environmental services companies in North America, offering a range of services including recycling and hazardous waste management [6]. Transaction Details - BGL's Environmental Infrastructure investment banking team acted as a financial advisor to Shamrock in the transaction, although specific terms of the deal were not disclosed [1][3][4]. Industry Position - BGL's Environmental Services & Infrastructure investment banking team has been ranked 1 in Environmental Services transaction volume in North America since 2016, focusing on essential services in waste processing, water treatment, and waste-to-energy markets [7].

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Core Insights - Republic Services, Inc. (RSG) reported mixed fourth-quarter 2024 results, with earnings exceeding estimates while revenues fell short [1][2]. Financial Performance - Earnings per share (EPS) of $1.58, excluding non-recurring items, surpassed the Zacks Consensus Estimate by 15.3% and grew 12.1% year-over-year [2]. - Revenues totaled $4 billion, missing the consensus mark slightly but increasing by 5.6% compared to the previous year [2]. - Adjusted EBITDA for the quarter was $1.3 billion, a 9.4% increase from the year-ago quarter, exceeding the estimate of $1.2 billion [5]. Segment Performance - Collection segment revenues were $2.7 billion, up 3.5% year-over-year, but missed projections of $2.8 billion [3]. - Transfer segment revenues were $203 million, an 8% increase year-over-year, but fell short of the $204.3 million projection [3]. - Landfill segment revenues reached $443 million, increasing by 5.5% year-over-year and meeting estimates [3]. - Other segment revenues were $190 million, rising 8% year-over-year but missing expectations of $199.8 million [4]. - Environmental solutions revenues were $482 million, a 16.7% year-over-year growth, surpassing projections of $458.4 million [4]. Balance Sheet and Cash Flow - At the end of Q4 2024, cash and cash equivalents were $74 million, down from $83.4 million at the end of Q3 2024 [6]. - Long-term debt was $11.9 billion, a slight decrease from $12 billion in the previous quarter [6]. - The company generated $1 billion in cash from operating activities, with adjusted free cash flow of $444 million and capital expenditures of $497.6 million [6]. 2025 Guidance - For 2025, RSG expects revenues between $16.85 billion and $16.95 billion, with the midpoint lower than the Zacks Consensus Estimate of $16.92 billion [8]. - The company anticipates adjusted EPS in the range of $6.82 to $6.90, which is higher than the consensus estimate of $6.77 [8]. - Adjusted EBITDA is projected to be between $5.28 billion and $5.33 billion [8].

Financial Performance - Revenue for 2024 reached $16,032 million, an increase of 7.1% from $14,965 million in 2023[447]. - Net income attributable to Republic Services, Inc. for 2024 was $2,043 million, up 17.9% from $1,731 million in 2023[447]. - Basic earnings per share increased to $6.50 in 2024, compared to $5.47 in 2023, reflecting a growth of 18.8%[447]. - Operating income for 2024 was $3,196 million, representing an increase of 15.0% from $2,780 million in 2023[447]. - Comprehensive income for 2024 was $2,030 million, compared to $1,731 million in 2023, reflecting an increase of 17.3%[450]. - Cash provided by operating activities rose to $3,936 million in 2024, compared to $3,618 million in 2023, marking an increase of 8.8%[456]. - Cash dividends declared increased to $699 million in 2024, up from $650 million in 2023, reflecting a growth of 7.5%[456]. Assets and Liabilities - Total assets as of December 31, 2024, were $32,402 million, a rise from $31,410 million in 2023, indicating a growth of 3.2%[445]. - Total current liabilities decreased to $4,128 million in 2024 from $4,228 million in 2023, a reduction of 2.4%[445]. - The balance of retained earnings as of December 31, 2024, was $9,774 million, an increase from $8,434 million in 2023, reflecting a growth of 15.9%[453]. - The total assets of the company as of December 31, 2024, reached $11,407 million, up from $10,543 million in 2023, representing an increase of 8.2%[453]. - Other accrued liabilities totaled $1,176 million as of December 31, 2024, slightly up from $1,172 million in 2023[562]. Environmental and Landfill Costs - The company established reserves for landfill and environmental costs, which are periodically reassessed based on various methods and assumptions[152]. - The carrying value of landfill final capping, closure, and post-closure costs totaled $2,144 million as of December 31, 2024[430]. - Accrued landfill and environmental costs reached $2,591 million in 2024, an increase from $2,422 million in 2023[568]. - Future payments for final capping, closure, and post-closure liabilities are estimated at $8,273 million as of December 31, 2024[570]. - The company has post-closure responsibility for 125 closed landfills, with a total disposal capacity of 5 billion in-place cubic yards as of December 31, 2024[567]. Debt and Financing - Total debt as of December 31, 2024, is $12.840 billion, a decrease from $12.949 billion in 2023[578]. - The long-term portion of total debt is $11.851 billion as of December 31, 2024, compared to $11.887 billion in 2023[578]. - The company had $514 million outstanding under its Credit Facility as of December 31, 2024, compared to $297 million in 2023[586]. - The commercial paper program was increased to a cap of $1.5 billion, with $477 million outstanding as of December 31, 2024[589]. - The company issued $400 million of senior notes due 2029 and $800 million of senior notes due 2034 in March 2023 for general corporate purposes[591]. Investments and Acquisitions - The company acquired various environmental services businesses for a total purchase price of $281 million in 2024, down from $1,776 million in 2023[541]. - The company invested approximately $236 million and $222 million in non-controlling equity interests in 2024 and 2023, respectively, related to investment tax credits[546]. - The company paid approximately $700 million for acquisitions that closed through February 13, 2025[544]. Insurance and Liabilities - The company maintains various insurance policies to cover potential liabilities, but there is a risk of being exposed to uninsured liabilities that could adversely affect financial conditions[153]. - The company’s insurance reserves for unpaid claims were $622 million as of December 31, 2024, compared to $566 million in 2023[564]. - Insurance reserves are based on claims filed and estimates of claims incurred but not reported, with adjustments reflected in the consolidated statements of income[511]. Revenue Recognition and Accounting Policies - The company recognizes revenue when control is transferred to the customer, with advance billings recorded as deferred revenue[516][517]. - Deferred tax assets are recorded to the extent they are expected to be realized, considering all available positive and negative evidence[519]. - The company is currently evaluating the impact of new accounting standards on its future consolidated financial statements, including ASU 2023-09 and ASU 2024-03[537][535].

Financial Data and Key Metrics Changes - Republic Services achieved a revenue growth of 7% in 2024, with adjusted EBITDA growth of 12% and an adjusted EBITDA margin expansion of 140 basis points [8][30] - Adjusted earnings per share (EPS) reached $6.46, and the company generated $2.18 billion in adjusted free cash flow, marking a 10% increase compared to the previous year [8][32] - Total debt at the end of 2024 was $12.8 billion, with total liquidity of $2.5 billion and a leverage ratio of approximately 2.6 times [32] Business Line Data and Key Metrics Changes - The environmental solutions business saw a revenue increase of nearly $70 million compared to the prior year, with an adjusted EBITDA margin expansion of over 500 basis points to 24.7% in the fourth quarter [31][78] - Organic volume on total revenue declined by 1.2% in the fourth quarter, primarily due to shedding underperforming contracts in the residential business and softness in construction and manufacturing end markets [11][26] - Recycling processing and commodity sales increased revenue by 20 basis points during the quarter, with commodity prices averaging $164 per ton for the full year, up from $117 per ton in the prior year [28][29] Market Data and Key Metrics Changes - The average yield on total revenue was 4.4%, while the average yield on related revenue was 5.3% [10][25] - Current commodity prices are approximately $145 per ton, which is the baseline used in the 2025 guidance [27][29] - The company expects organic volume growth in the recycling and waste business to range from negative 25 basis points to positive 25 basis points in 2025 [26] Company Strategy and Development Direction - The company is focused on sustainability and digital capabilities, with ongoing investments in polymer centers and renewable natural gas projects [14][17] - Republic Services plans to deploy at least $1 billion in value-creating acquisitions in 2025, with a strong pipeline supporting continued acquisition activity [24][50] - The company aims to maintain a high customer retention rate, which remains strong at over 94% [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver profitable growth while continuing to invest in the business for long-term value creation [23][24] - The macroeconomic environment, including inflation and interest rates, is being monitored, but management does not see these factors as immediate threats [113][114] - The company anticipates a balanced EBITDA cadence for 2025, with margin expansion expected across all business types [60] Other Important Information - Employee engagement score remained high at 86, with turnover improving by 150 basis points compared to the prior year [20] - The company was named to the Dow Jones Sustainability Index for the ninth consecutive year, reflecting its commitment to sustainability [21] Q&A Session Summary Question: Future growth prospects for Environmental Solutions (ES) - Management remains positive about ES prospects, with expectations for M&A growth and organic growth in 2025 following IT integration [38] Question: Margin expansion details for 2025 - Management expects approximately 30 basis points of margin expansion, with underlying business growth potentially exceeding this figure [40][44] Question: M&A activity and pipeline - The company has a strong pipeline for acquisitions, particularly in Environmental Solutions and recycling, with a focus on strategic and financial filters [50] Question: Pricing environment and customer feedback - Management noted that pricing discussions with clients remain healthy, with a good spread maintained despite cost inflation [88] Question: Update on polymer centers and RNG plants - Incremental revenue from sustainability investments is projected at $70 million, with EBITDA contribution of $35 million expected in 2025 [67] Question: Risks and macroeconomic concerns - Management is watchful of the macro environment but does not see it as a major concern, focusing instead on safety and operational execution [113][114]

Republic Services (RSG) reported $4.05 billion in revenue for the quarter ended December 2024, representing a year-over-year increase of 5.6%. EPS of $1.58 for the same period compares to $1.41 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $4.08 billion, representing a surprise of -0.86%. The company delivered an EPS surprise of +15.33%, with the consensus EPS estimate being $1.37.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings - ...

Republic Services (RSG) came out with quarterly earnings of $1.58 per share, beating the Zacks Consensus Estimate of $1.37 per share. This compares to earnings of $1.41 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 15.33%. A quarter ago, it was expected that this waste management company would post earnings of $1.62 per share when it actually produced earnings of $1.81, delivering a surprise of 11.73%.Over the last four quar ...

Exceeded Adjusted EBITDA, Adjusted Earnings Per Share and Adjusted Free Cash Flow Full-Year 2024 Guidance Fourth Quarter Total Revenue Growth of 5.6 Percent Fourth Quarter Earnings Per Share of $1.63 and Adjusted Earnings Per Share of $1.58 Expanded Fourth Quarter Net Income Margin 120 Basis Points and Adjusted EBITDA Margin 110 Basis Points Generated Cash Flow from Operations of $3.94 Billion and Adjusted Free Cash Flow of $2.18 Billion in 2024 Returned $1.18 Billion to Shareholders in 2024PHOENIX, Feb. 1 ...

EXHIBIT 99.1 Republic Services, Inc. Reports Fourth Quarter and Full-Year 2024 Results; Provides 2025 Full-Year Financial Guidance PHOENIX (February 13, 2025) – Republic Services, Inc. (NYSE: RSG) today reported net income of $512 million, or $1.63 per diluted share, for the three months ended December 31, 2024, versus $440 million, or $1.39 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 December 31, ...

Republic Services, Inc. (RSG) is scheduled to release its fourth-quarter 2024 results on Feb. 13, after market close.See Zacks Earnings Calendar to stay ahead of market-making news.RSG has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 8.2%.Republic Services, Inc. Price, Consensus and EPS Surprise Republic Services’ Q4 ExpectationsThe Zacks Consensus Estimate for the company’s revenues is pegged at $4.1 billion ...