Summary
Republic Services, Inc. (RSG) reported strong performance in its 2017 10-K filing, showcasing a 7.0% increase in revenue to $10.04 billion, driven by a combination of price increases, volume growth, and strategic acquisitions. The company highlighted its "Five Pillars of Strategy" focused on Profitable Growth through Differentiation, emphasizing market position, operational efficiency, people and talent, customer zeal, and a digital platform. This strategic approach aims to enhance customer loyalty and drive higher revenue and profits. The company also demonstrated a commitment to shareholder returns, increasing its quarterly dividend and continuing its share repurchase program. Republic Services continues to invest in fleet modernization, with a growing percentage of its fleet operating on compressed natural gas (CNG), and maintains a strong focus on safety and employee development, evidenced by its safety performance being 41% better than the industry average over the past decade. Despite facing competitive pressures and regulatory environments, Republic Services appears well-positioned for continued growth and value creation.
Financial Highlights
54 data points| Revenue | $10.04B |
| Cost of Revenue | $6.21B |
| Gross Profit | $3.83B |
| SG&A Expenses | $1.06B |
| Operating Income | $1.67B |
| Interest Expense | $361.90M |
| Net Income | $1.28B |
| EPS (Basic) | $3.79 |
| EPS (Diluted) | $3.77 |
| Shares Outstanding (Basic) | 337.05M |
| Shares Outstanding (Diluted) | 338.98M |
Key Highlights
- 1Revenue increased by 7.0% to $10.04 billion in 2017, driven by price increases (2.9%), volume growth (1.8%), acquisitions (0.8%), recycled commodities (0.9%), and energy services (0.6%).
- 2The company operates under a 'Five Pillars of Strategy' focusing on market position, operating model, people and talent, customer zeal, and digital platform to achieve profitable growth.
- 3Republic Services returned significant capital to shareholders, increasing the quarterly dividend by 8% and adding $2.0 billion to its share repurchase authorization.
- 4The company is investing in fleet modernization, with 19% of its fleet operating on Compressed Natural Gas (CNG) and 75% of residential routes automated.
- 5Safety remains a priority, with the company reporting 41% better safety performance than the industry average over the past decade.
- 6Despite a challenging regulatory environment and competitive landscape, the company maintains strong market positions in its served areas.
- 7Republic Services' landfill operations have a significant estimated remaining disposal capacity, with an average site life of 63 years, providing a long-term operational runway.