Summary
Republic Services, Inc. (RSG) filed its 10-K for the fiscal year ended December 30, 2013, highlighting its position as the second-largest provider of non-hazardous solid waste services in the United States. The company operates a vast network of 336 collection operations across 39 states and Puerto Rico, supported by 199 transfer stations, 190 landfills, and 69 recycling centers. The report emphasizes the company's commitment to safety, compliance, sustainability, and customer experience as core operational priorities. Financial performance for 2013 showed revenue growth driven by yield, volume, and acquisition activity, though operating income saw a slight decline due to increased costs, including significant pension withdrawal liabilities. RSG is focused on creating shareholder value through consistent earnings and cash flow growth, supported by a solid capital structure and an investment-grade credit rating. The company continued its strategic initiatives, including fleet automation and conversion to compressed natural gas (CNG), as well as investments in recycling capabilities. Shareholder returns were further supported by dividend payments and an active share repurchase program. Investors should note the material impact of the Central States Pension Fund withdrawal costs, environmental remediation charges at Bridgeton Landfill, and the ongoing competitive landscape within the waste management industry.
Financial Highlights
54 data points| Revenue | $8.42B |
| Cost of Revenue | $5.23B |
| Gross Profit | $3.18B |
| SG&A Expenses | $853.80M |
| Operating Income | $1.21B |
| Interest Expense | $360.00M |
| Net Income | $588.90M |
| EPS (Basic) | $1.63 |
| EPS (Diluted) | $1.62 |
| Shares Outstanding (Basic) | 362.05M |
| Shares Outstanding (Diluted) | 363.42M |
Key Highlights
- 1Republic Services is the second-largest provider of non-hazardous solid waste services in the US, operating extensive collection, transfer, recycling, and landfill operations.
- 2The company emphasizes core priorities including safety, compliance, sustainability, and customer experience.
- 3Revenue for 2013 grew by 3.7% to $8.4 billion, driven by price increases (yield and fuel recovery), volume, and acquisitions.
- 4Significant one-time charges impacted operating income, notably $157.7 million related to the Central States Pension and Other Funds and $108.7 million for Bridgeton remediation.
- 5The company returned capital to shareholders through dividends and share repurchases, totaling $348.5 million and $213.6 million, respectively, in 2013.
- 6RSG maintained a strong capital structure with investment-grade credit ratings and had $1.5 billion in availability under its credit facilities as of year-end 2013.
- 7The company is strategically converting its fleet to compressed natural gas (CNG), with 12% of the fleet operating on natural gas by the end of 2013.