01—Abstract
Summary
Summary of the 10-K filed February 15, 2013. Cited figures are marked; the original filing is the authoritative source.
Republic Services, Inc. (RSG) in its 2012 10-K filing demonstrates its position as a leading player in the domestic non-hazardous solid waste industry.
The company is focused on delivering integrated waste management solutions, emphasizing customer service, operational efficiency, and sustainable practices. A significant event during the year was the restructuring of operations to enhance competitiveness, involving the consolidation of regions and areas, and a reduction in administrative staffing. Financially, RSG reported stable revenue around $8.1 billiona, with a slight decrease compared to the prior year, primarily due to lower volumes and recycling commodity prices, partially offset by price increases and acquisitions.
The company continued to manage its debt effectively, refinancing significant portions and maintaining investment-grade credit ratings. Key strategic initiatives include expanding recycling capabilities, fleet automation, and transitioning to Compressed Natural Gas (CNG) vehicles to improve efficiency and environmental performance. The company also maintained a strong commitment to returning capital to shareholders through dividends and share repurchases.
02—Key points
Key Highlights
- Republic Services operates as the second-largest provider of non-hazardous solid waste services in the U.S., with a national footprint across 38 states and Puerto Rico.
- The company generated approximately $8.1 billion in revenue for the fiscal year 2012, with collection services accounting for the majority (77%).
- RSG is actively pursuing operational efficiencies through fleet automation (62% of residential routes automated) and a gradual transition to Compressed Natural Gas (CNG) vehicles.
- The company reported $1.56 in basic earnings per share and $1.55 in diluted earnings per share for 2012, with a net income of $571.8 million.
- Republic Services maintained investment-grade credit ratings (BBB by S&P and Fitch, Baa3 by Moody's) and managed its substantial debt of approximately $7 billion.
- Strategic priorities include customer experience enhancements, expansion of recycling capabilities, fleet automation, and conversion to CNG vehicles.
- The company returned capital to shareholders through $324.7 million in share repurchases and $329.1 million in dividends paid during 2012.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2012, Republic Services, Inc. kept $0.07.
- Revenue$8.12B100.0%
- Cost of revenue−$5.01B61.7%
- Gross profit$3.11B38.3%
- Operating costs−$1.79B22.1%
- Operating income$1.32B16.3%
- Interest, other & tax−$748.8M9.2%
- Net income$571.8M7.0%
Where FY2012 revenue went
$8.12B- Cost of revenue: $5.01B, 62% of revenue
- Net income: $571.8M, 7.0% of revenue
- SG&A: $820.9M, 10% of revenue
- Other operating costs: $971.1M, 12% of revenue
- Interest, other & tax: $748.8M, 9.2% of revenue
Kept 7.0% as net incomeNet income $571.8M · 7.0%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2012filed February 15, 2013Financial Statements
FY2012 against FY2011
| Line item | FY2012FY2011 | Change |
|---|---|---|
| Revenue | $8.12B$8.19B | −0.9% |
| Cost of Revenue | $5.01B$4.87B | +2.9% |
| Gross Profit | $3.11B$3.33B | −6.5% |
| SG&A Expenses | $820.90M$825.40M | −0.5% |
| Operating Income | $1.32B$1.55B | −14.9% |
| Interest Expense | $388.50M$440.20M | −11.7% |
| Net Income | $571.80M$589.20M | −3.0% |
| EPS (Basic) | $1.56$1.57 | −0.6% |
| EPS (Diluted) | $1.55$1.56 | −0.6% |
| Shares Outstanding (Basic) | 366.88M375.96M | −2.4% |
| Shares Outstanding (Diluted) | 368.02M377.61M | −2.5% |
05—Questions
Frequently Asked Questions
What was Republic Services' revenue performance in 2012?
In 2012, Republic Services reported revenue of $8,118.3 million, a slight decrease of 0.9% compared to $8,192.9 million in 2011. This decrease was primarily attributed to lower volumes (1.0%) and a decline in recycling commodity prices (1.2%), which were partially offset by core price increases (0.8%) and net acquisitions (0.4%).
How is the company managing its debt and capital structure?
Republic Services maintained a strong focus on its capital structure, with approximately $7 billion in debt outstanding as of December 31, 2012. The company successfully refinanced a significant portion of its debt, reducing average coupon rates and extending maturities. It also maintained investment-grade credit ratings, facilitating access to capital markets at competitive rates.
What are the company's key strategic initiatives for growth and efficiency?
Key strategic initiatives include enhancing customer experience through service and technology, expanding recycling capabilities (investing $76 million in five recycling centers in 2012), automating its fleet (62% of residential routes automated), and a gradual fleet conversion to Compressed Natural Gas (CNG) vehicles (54% of vehicle purchases in 2012 were CNG). The company also aims to improve operating margins through standardized maintenance practices.
How did the company return capital to shareholders in 2012?
Republic Services returned capital to shareholders through dividends and share repurchases. In 2012, the company paid $329.1 million in cash dividends and repurchased $324.7 million of its common stock.
06—Continue