Summary
Republic Services, Inc. (RSG) reported solid financial results for the nine months ended September 30, 2004. The company demonstrated strong revenue growth, with a 7.5% increase year-over-year, driven by a combination of core price increases and volume growth. Operating income also saw a significant improvement of 11.9%, reaching $342.7 million. Net income for the nine months increased substantially to $180.3 million, up from $121.9 million in the prior year period, though this comparison is impacted by a one-time accounting change in the prior year. The company also continued its share repurchase program and initiated and increased dividend payments, signaling confidence in its financial position and commitment to shareholder returns.
Key Highlights
- 1Revenue increased by 7.5% to $2,020.4 million for the nine months ended September 30, 2004, compared to the same period in 2003.
- 2Operating income grew by 11.9% to $342.7 million for the nine months ended September 30, 2004.
- 3Net income for the nine months ended September 30, 2004, was $180.3 million, a significant increase from $121.9 million in the prior year, excluding the impact of a cumulative change in accounting principle in 2003.
- 4The company repurchased approximately $242.8 million of its common stock during the nine months ended September 30, 2004, and announced an additional $275.0 million repurchase authorization in October 2004.
- 5Quarterly cash dividends increased from $0.06 to $0.12 per share, reflecting a commitment to returning capital to shareholders.
- 6The company maintained a strong liquidity position with $368.5 million available under its revolving credit facility as of September 30, 2004.
- 7Total available landfill airspace was approximately 1.8 billion cubic yards as of September 30, 2004, with an estimated remaining average site life of 30 years.