Summary
Republic Services, Inc. (RSG) reported its 2009 full-year results in its February 2010 10-K filing. The company, a leading provider of waste management services, was significantly impacted by its acquisition of Allied Waste Industries, Inc. in December 2008. This merger led to a substantial increase in revenue, reaching $8.2 billion in 2009, up from $3.7 billion in 2008, primarily due to the combined entity's operations. Despite the revenue growth driven by the acquisition, the "core" business experienced a revenue decrease of 10.7% in 2009, reflecting the challenging economic environment. This decline was attributed to a 9.5% drop in core volume, partially offset by a 3.0% increase in core pricing. The company's financial strategy emphasizes generating free cash flow and maintaining investment-grade credit ratings. Management is focused on completing the integration of Allied, realizing synergies, and managing costs effectively in the prevailing economic climate. The company also highlighted its ongoing commitment to safety, service delivery, and enhancing return on invested capital.
Financial Highlights
54 data points| Revenue | $8.20B |
| Cost of Revenue | $4.84B |
| Gross Profit | $3.35B |
| SG&A Expenses | $880.40M |
| Operating Income | $1.59B |
| Interest Expense | $595.90M |
| Net Income | $495.00M |
| EPS (Basic) | $1.30 |
| EPS (Diluted) | $1.30 |
| Shares Outstanding (Basic) | 379.70M |
| Shares Outstanding (Diluted) | 381.00M |
Key Highlights
- 1The acquisition of Allied Waste Industries, Inc. in December 2008 significantly boosted revenue to $8.2 billion in 2009, a 122.5% increase year-over-year.
- 2Despite the headline revenue growth, core operations faced challenges, with a 10.7% revenue decrease in 2009 driven by a 9.5% decline in volume, though price increases (3.0%) provided some offset.
- 3Republic Services is actively pursuing integration synergies from the Allied merger, having already achieved $150 million in run-rate synergies and aiming for $165-$175 million by the end of 2010.
- 4The company's financial strategy prioritizes generating free cash flow and maintaining investment-grade credit ratings, with efforts focused on debt reduction and efficient capital allocation.
- 5Despite economic headwinds impacting volumes, the company's focus on pricing initiatives and cost control helped to moderate margin declines.
- 6Landfill operations remained a significant part of the business, with 192 active landfills and substantial available disposal capacity.
- 7The company operated 74 landfill gas and renewable energy projects, highlighting a commitment to sustainability and diversified energy generation.