10-KPeriod: FY2014

REPUBLIC SERVICES, INC. Annual Report, Year Ended Dec 31, 2014

Filed February 23, 2015For Securities:RSG

Summary

Republic Services, Inc. (RSG) operates as the second largest provider of non-hazardous solid waste services in the United States, serving customers across 39 states and Puerto Rico. The company's business model is built on providing comprehensive waste management solutions, including collection, transfer, recycling, and disposal services. For the year ended December 31, 2014, RSG reported revenue of $8.79 billion, with a net income attributable to the company of $547.6 million. The company's strategy emphasizes both internal growth through price and volume increases, and strategic acquisitions to expand its service offerings and market presence. RSG demonstrates a strong commitment to safety and compliance, with industry-leading safety performance and robust compliance programs. The company is also focused on sustainability, evident in its investments in compressed natural gas (CNG) vehicles and landfill gas-to-energy projects. Financially, RSG is managing its debt effectively and returning capital to shareholders through dividends and share repurchases, indicating a focus on long-term shareholder value creation. The company operates through three geographic segments: East, Central, and West, each contributing to its national service footprint.

Financial Highlights

54 data points
Beta

Revenue

$8.80B

35.9% Gross Margin

Net Income

$547.60M

6.2% Net Margin

EPS (Diluted)

$1.53

Total Assets

$20.05B

Cash & Equivalents

$75.20M

Free Cash Flow

$667.30M

Financial Statements
Beta
Revenue$8.80B
Cost of Revenue$5.64B
Gross Profit$3.16B
SG&A Expenses$918.90M
Operating Income$1.23B
Interest Expense$348.70M
Net Income$547.60M
EPS (Basic)$1.54
EPS (Diluted)$1.53
Shares Outstanding (Basic)356.67M
Shares Outstanding (Diluted)358.11M

Key Highlights

  • 1Republic Services is the second-largest provider of non-hazardous solid waste services in the U.S.
  • 2Reported revenue of $8.79 billion for the year ended December 31, 2014.
  • 3Achieved net income attributable to Republic Services, Inc. of $547.6 million for the year ended December 31, 2014.
  • 4Operates through three geographic segments: East, Central, and West.
  • 5Prioritizes safety with a safety performance 42% better than the industry average over the past 7 years.
  • 6Invests in sustainability initiatives, including a significant CNG fleet and landfill gas-to-energy projects.
  • 7Maintains a strong capital structure with investment-grade credit ratings and a commitment to returning capital to shareholders.

Frequently Asked Questions

Republic Services manages and evaluates its operations through three geographic operating regions, which are also its reportable segments: East, Central, and West. Each region provides collection, transfer, recycling, and landfill services.

For the year ended December 31, 2014, Republic Services reported revenue of $8,788.3 million and net income attributable to Republic Services, Inc. of $547.6 million, or $1.53 per diluted share. This represented a slight decrease in net income compared to 2013, largely due to environmental remediation charges.

Republic Services' growth strategies include focusing on internal growth through price and volume increases, pursuing acquisitions of complementary solid waste and recycling companies, expanding its recycling capabilities, and developing new landfill and transfer station projects. They also focus on cost control initiatives such as fleet automation and conversion to CNG.

Republic Services emphasizes a strong commitment to safety, aiming for employees to return home safely each night, and has a safety performance significantly better than the industry average. The company also invests in sustainability, such as using CNG vehicles to reduce emissions and operating landfill gas-to-energy projects. They are subject to various federal, state, and local environmental regulations and maintain reserves for landfill and environmental costs.