Summary
Republic Services, Inc. (RSG) reported a solid financial performance for the year ending December 31, 2015. The company, a leading provider of non-hazardous solid waste management services, saw revenue increase by 3.5% to $9.115 billion, driven by a combination of price increases (average yield), volume growth, and strategic acquisitions. Net income attributable to Republic Services, Inc. rose significantly to $749.9 million, translating to diluted earnings per share of $2.13, up from $1.53 in the prior year. This performance reflects the company's successful execution of its 'Profitable Growth through Differentiation' strategy, which focuses on market leadership, operational efficiency, people development, customer focus, and digital innovation. The company demonstrated strong cash flow generation, with cash provided by operating activities reaching $1.68 billion. Republic Services continued to return value to shareholders through increased dividends and share repurchases. The company also highlighted its commitment to sustainability and efficient operations, including fleet modernization with Compressed Natural Gas (CNG) vehicles and a focus on safety. Despite potential risks related to economic conditions, fuel price volatility, and regulatory changes, Republic Services appears well-positioned for continued growth and profitability.
Financial Highlights
54 data points| Revenue | $9.12B |
| Cost of Revenue | $5.52B |
| Gross Profit | $3.60B |
| SG&A Expenses | $983.10M |
| Operating Income | $1.56B |
| Interest Expense | $364.90M |
| Net Income | $749.91M |
| EPS (Basic) | $2.14 |
| EPS (Diluted) | $2.13 |
| Shares Outstanding (Basic) | 349.98M |
| Shares Outstanding (Diluted) | 351.39M |
Key Highlights
- 1Revenue increased by 3.5% to $9.115 billion, driven by price increases, volume growth, and acquisitions.
- 2Net income attributable to Republic Services, Inc. grew to $749.9 million, resulting in diluted earnings per share of $2.13, a significant increase from $1.53 in the prior year.
- 3Cash flow from operations was robust at $1.68 billion, supporting investments and shareholder returns.
- 4The company continued its commitment to shareholder returns by increasing dividends and executing share repurchases.
- 5Republic Services is actively modernizing its fleet with 16% of vehicles operating on CNG and continuing to convert its fleet to this more environmentally friendly fuel.
- 6The company emphasized its strategic focus on 'Profitable Growth through Differentiation,' underpinned by five key pillars: market position, operating model, people and talent, customer zeal, and digital platform.
- 7Significant remediation charges and insurance recoveries related to the Bridgeton Landfill were noted, with an insurance recovery of $50 million in 2015 offsetting remediation expenses.