Summary
Republic Services, Inc. (RSG) reported its second-quarter 2009 financial results, highlighting the significant impact of its December 2008 merger with Allied Waste Industries. Total revenue saw a substantial increase of 157% year-over-year, reaching $4.13 billion for the six months ended June 30, 2009, primarily due to the consolidation of Allied's operations. Despite the revenue surge, the company is navigating a challenging economic environment, with internal revenue growth (excluding the merger's impact) showing a decline of 10.6% for the first six months of 2009, attributed to decreased volumes and lower commodity prices, partially offset by core price increases. The company generated strong operating income and free cash flow, demonstrating effective cost management and operational efficiencies post-merger. Management is focused on integrating Allied, realizing synergies, and managing capital expenditures to maintain financial flexibility. The balance sheet reflects increased assets and liabilities following the merger. Total assets stood at $19.45 billion, with goodwill representing a significant portion due to the acquisition. Long-term debt remains substantial at $6.77 billion, though the company maintains compliance with its debt covenants and possesses ample liquidity. The company also reported a substantial net income of $338.9 million for the first six months of 2009, a significant improvement from the prior year's $116.8 million, largely driven by the merger synergies and asset divestitures, partially offset by restructuring charges.
Financial Highlights
53 data points| Revenue | $2.07B |
| Cost of Revenue | $1.23B |
| Gross Profit | $839.20M |
| SG&A Expenses | $215.80M |
| Operating Income | $520.70M |
| Interest Expense | $150.50M |
| Net Income | $225.90M |
| EPS (Basic) | $0.60 |
| EPS (Diluted) | $0.59 |
| Shares Outstanding (Basic) | 379.17M |
| Shares Outstanding (Diluted) | 379.93M |
Key Highlights
- 1Revenue increased by 157% to $4.13 billion for the first six months of 2009, driven by the acquisition of Allied Waste Industries.
- 2The company reported a net income of $338.9 million for the first six months of 2009, a significant increase from $116.8 million in the prior year.
- 3Core revenue (excluding merger impact) declined by 10.6% for the first six months of 2009 due to lower volumes and commodity prices, partially offset by pricing initiatives.
- 4Operating income was $873.6 million for the first six months of 2009, with an operating margin of 21.2%, benefiting from merger synergies and asset divestiture gains.
- 5Free cash flow for the first six months of 2009 was $342.3 million, demonstrating continued operational cash generation despite economic headwinds.
- 6Total debt stood at $7.1 billion at June 30, 2009, with the company maintaining compliance with its debt covenants and sufficient liquidity.
- 7The company incurred $43.6 million in restructuring charges and recognized $145.2 million in gains from asset dispositions related to the Allied merger during the first six months of 2009.