01—Abstract
Summary
Summary of the 10-K filed February 14, 2020. Cited figures are marked; the original filing is the authoritative source.
Republic Services, Inc. (RSG) reported strong performance in its 2019 10-K filing, highlighting revenue growth driven by price increases and strategic acquisitions.
The company emphasized its 'Five Pillars of Strategy' focusing on market position, operating model, people and talent, customer zeal, and digital platform as key drivers for profitable growth. RSG's commitment to operational efficiency is evident in its fleet automation and conversion to CNG vehicles. The company also showcased a strong focus on employee safety, engagement, and development, evidenced by its safety performance exceeding industry averages and investments in leadership training.
Financially, RSG demonstrated solid revenue growth and maintained robust operating margins. The company also continued to return value to shareholders through increased dividends and share repurchases, supported by strong free cash flow generation and an investment-grade credit rating. The filing also detailed the company's ongoing commitment to sustainability, outlining ambitious 'Blue Planet: 2030 Goals' focused on emissions reduction, circular economy initiatives, and community impact, positioning RSG as a forward-thinking leader in its industry.
02—Key points
Key Highlights
- Republic Services (RSG) is the second-largest provider of non-hazardous solid waste collection, transfer, disposal, recycling, and environmental services in the U.S.
- The company's strategy focuses on 'Profitable Growth through Differentiation' built on five pillars: market position, operating model, people and talent agenda, customer zeal, and digital platform.
- RSG is committed to operational efficiency, including a significant conversion of its residential routes to automated single-driver trucks (76%) and a gradual fleet conversion to Compressed Natural Gas (CNG) vehicles (20%).
- The company places a strong emphasis on safety, with a safety performance 39% better than the industry average over the past 10 years, and on employee engagement, which improved from 85% in 2018 to 86% in 2019.
- RSG is committed to returning capital to shareholders, increasing its quarterly dividend and continuing its share repurchase program, supported by strong free cash flow.
- The company has set ambitious 'Blue Planet: 2030 Goals' for sustainability, including targets for reducing greenhouse gas emissions, increasing material recovery, and increasing biogas utilization.
- Revenue increased by 2.6% to $10.3 billion in 2019, driven by price increases and acquisitions, while maintaining a stable operating margin of 17.3%.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2019, Republic Services, Inc. kept $0.10.
- Revenue$10.30B100.0%
- Cost of revenue−$6.30B61.2%
- Gross profit$4.00B38.8%
- Operating costs−$2.21B21.5%
- Operating income$1.79B17.4%
- Interest, other & tax−$713.4M6.9%
- Net income$1.07B10.4%
Where FY2019 revenue went
$10.30B- Cost of revenue: $6.30B, 61% of revenue
- Net income: $1.07B, 10% of revenue
- SG&A: $1.09B, 11% of revenue
- Other operating costs: $1.12B, 11% of revenue
- Interest, other & tax: $713.4M, 6.9% of revenue
Kept 10% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2019filed February 14, 2020Financial Statements
FY2019 against FY2018
| Line item | FY2019FY2018 | Change |
|---|---|---|
| Revenue | $10.30B$10.04B | +2.6% |
| Cost of Revenue | $6.30B$6.15B | +2.4% |
| Gross Profit | $4.00B$3.89B | +2.8% |
| SG&A Expenses | $1.09B$1.06B | +3.1% |
| Operating Income | $1.79B$1.74B | +3.0% |
| Interest Expense | $392.00M$383.80M | +2.1% |
| Net Income | $1.07B$1.04B | +3.5% |
| EPS (Basic) | $3.34$3.17 | +5.4% |
| EPS (Diluted) | $3.33$3.16 | +5.4% |
| Shares Outstanding (Basic) | 321.06M326.90M | −1.8% |
| Shares Outstanding (Diluted) | 321.99M328.38M | −1.9% |
05—Questions
Frequently Asked Questions
What are Republic Services' main business segments?
Republic Services operates primarily through two field groups, Group 1 and Group 2, which provide integrated waste management services. These services include non-hazardous solid waste collection, transfer, recycling, disposal, and environmental services.
How does Republic Services aim to achieve profitable growth?
The company's strategy, 'Profitable Growth through Differentiation,' is built on five key pillars: strengthening its market position, optimizing its operating model, focusing on its people and talent agenda, enhancing customer zeal, and developing its digital platform.
What is Republic Services' approach to environmental responsibility and sustainability?
Republic Services is committed to sustainability through its 'Blue Planet: 2030 Goals,' which include reducing greenhouse gas emissions, increasing the recovery of key materials, increasing biogas utilization, and positively impacting millions of people through charitable giving. The company is the first U.S. recycling and solid waste services provider to have its emissions reduction target approved by the Science Based Targets initiative (SBTi).
How does the company manage its debt and capital allocation?
Republic Services maintains a balanced approach to capital allocation, prioritizing investing in acquisitions and returning free cash flow to shareholders through dividends and share repurchases. The company aims to maintain its investment-grade credit ratings and manage its debt efficiently, with a significant unsecured revolving credit facility in place.
06—Continue