01—Abstract
Summary
Summary of the 10-K filed February 23, 2015. Cited figures are marked; the original filing is the authoritative source.
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 billiona, 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.
02—Key points
Key Highlights
- Republic Services is the second-largest provider of non-hazardous solid waste services in the U.S.
- Reported revenue of $8.79 billion for the year ended December 31, 2014.
- Achieved net income attributable to Republic Services, Inc. of $547.6 million for the year ended December 31, 2014.
- Operates through three geographic segments: East, Central, and West.
- Prioritizes safety with a safety performance 42% better than the industry average over the past 7 years.
- Invests in sustainability initiatives, including a significant CNG fleet and landfill gas-to-energy projects.
- Maintains a strong capital structure with investment-grade credit ratings and a commitment to returning capital to shareholders.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2014, Republic Services, Inc. kept $0.06.
- Revenue$8.80B100.0%
- Cost of revenue−$5.64B64.1%
- Gross profit$3.16B35.9%
- Operating costs−$1.93B21.9%
- Operating income$1.23B14.0%
- Interest, other & tax−$685.5M7.8%
- Net income$547.6M6.2%
Where FY2014 revenue went
$8.80B- Cost of revenue: $5.64B, 64% of revenue
- Net income: $547.6M, 6.2% of revenue
- SG&A: $918.9M, 10% of revenue
- Other operating costs: $1.01B, 11% of revenue
- Interest, other & tax: $685.5M, 7.8% of revenue
Kept 6.2% as net incomeNet income $547.6M · 6.2%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2014filed February 23, 2015Financial Statements
FY2014 against FY2013
| Line item | FY2014FY2013 | Change |
|---|---|---|
| Revenue | $8.80B$8.42B | +4.6% |
| Cost of Revenue | $5.64B$5.23B | +7.8% |
| Gross Profit | $3.16B$3.18B | −0.7% |
| SG&A Expenses | $918.90M$853.80M | +7.6% |
| Operating Income | $1.23B$1.21B | +1.9% |
| Interest Expense | $348.70M$360.00M | −3.1% |
| Net Income | $547.60M$588.90M | −7.0% |
| EPS (Basic) | $1.54$1.63 | −5.5% |
| EPS (Diluted) | $1.53$1.62 | −5.6% |
| Shares Outstanding (Basic) | 356.67M362.05M | −1.5% |
| Shares Outstanding (Diluted) | 358.11M363.42M | −1.5% |
05—Questions
Frequently Asked Questions
What are Republic Services' primary business segments?
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.
How did Republic Services perform financially in 2014?
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.
What are Republic Services' growth strategies?
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.
How does Republic Services manage its environmental and safety responsibilities?
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.
06—Continue