Republic Services(US:RSG)2024-02-29 02:48Financial 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]