Summary
Republic Services, Inc. (RSG) reported its financial results for the second quarter and first half of 2010. Revenue remained stable year-over-year for the quarter at $2.07 billion, but saw a slight decrease of 2.5% to $4.02 billion for the six-month period. This revenue performance was impacted by required divestitures following the Allied Waste Industries merger, which reduced revenue by 1.6%. Core revenue, excluding divested assets, showed a modest decline, driven by volume decreases offset by price and commodity price increases. Net income attributable to Republic Services, Inc. for the quarter was $159.7 million ($0.42 diluted EPS), down from $225.9 million ($0.59 diluted EPS) in the prior year quarter. For the six months, net income was $224.7 million ($0.59 diluted EPS), down from $338.9 million ($0.89 diluted EPS) in 2009. These decreases were significantly influenced by a substantial loss on extinguishment of debt in the first quarter of 2010, related to the refinancing of higher-interest debt. Excluding special items, adjusted earnings per share showed a more stable performance, indicating operational resilience amidst economic challenges.
Financial Highlights
54 data points| Revenue | $2.07B |
| Cost of Revenue | $1.22B |
| Gross Profit | $848.10M |
| SG&A Expenses | $210.80M |
| Operating Income | $400.80M |
| Interest Expense | $130.50M |
| Net Income | $159.70M |
| EPS (Basic) | $0.42 |
| EPS (Diluted) | $0.42 |
| Shares Outstanding (Basic) | 382.51M |
| Shares Outstanding (Diluted) | 384.71M |
Key Highlights
- 1Total revenue for the six months ended June 30, 2010 was $4.02 billion, a 2.5% decrease compared to $4.13 billion in the prior year period, largely due to asset divestitures.
- 2Net income attributable to Republic Services, Inc. decreased to $159.7 million for the second quarter of 2010 and $224.7 million for the six-month period, compared to $225.9 million and $338.9 million respectively in 2009.
- 3Diluted earnings per share for the quarter were $0.42, down from $0.59 in the prior year, and $0.59 for the six-month period, down from $0.89 in 2009.
- 4A significant $132.3 million loss on extinguishment of debt was recorded in the first half of 2010 due to debt refinancing activities.
- 5Operating income for the quarter was $400.8 million, down from $520.7 million in the prior year quarter, reflecting the impact of lower volumes and divestitures.
- 6The company's core revenue, excluding divested revenues, decreased by 0.9% for the six months, with volume declines of 5.2% offset by price increases.
- 7Cash provided by operating activities was $594.8 million for the six months ended June 30, 2010, down from $687.6 million in the prior year period.