Summary
Republic Services, Inc. (RSG) reported its financial results for the second quarter and first half of 2011. For the three months ended June 30, 2011, revenue increased slightly to $2,086.6 million from $2,066.4 million in the prior year, while net income attributable to Republic Services, Inc. saw a significant decrease to $46.5 million ($0.12 per diluted share) from $159.7 million ($0.42 per diluted share) in the same period of 2010. This decline was largely attributed to a substantial "Loss on extinguishment of debt" of $199.5 million, alongside asset impairments and other charges. For the six months ended June 30, 2011, revenue grew to $4,051.5 million from $4,024.1 million in 2010, but net income attributable to Republic Services, Inc. decreased to $204.7 million ($0.54 per diluted share) from $224.7 million ($0.59 per diluted share) in the prior year. Despite the reported net income decline, the company emphasized "adjusted" figures that exclude significant non-operational items like debt extinguishment losses. Adjusted diluted earnings per share for the second quarter of 2011 were $0.49, compared to $0.43 in the prior year, and for the first half of the year, adjusted diluted earnings per share were $0.90, up from $0.84 in 2010. The company's liquidity remains solid, with significant availability under its credit facilities. Management also highlighted continued revenue growth driven by price increases and acquisitions, alongside efforts to manage costs and optimize operations.
Financial Highlights
54 data points| Revenue | $2.09B |
| Cost of Revenue | $1.24B |
| Gross Profit | $848.80M |
| SG&A Expenses | $200.10M |
| Operating Income | $401.20M |
| Interest Expense | $111.40M |
| Net Income | $46.50M |
| EPS (Basic) | $0.12 |
| EPS (Diluted) | $0.12 |
| Shares Outstanding (Basic) | 378.20M |
| Shares Outstanding (Diluted) | 380.17M |
Key Highlights
- 1Revenue increased slightly year-over-year for both the second quarter ($2,086.6M vs $2,066.4M) and the first half of the year ($4,051.5M vs $4,024.1M).
- 2Reported net income attributable to Republic Services, Inc. decreased significantly in the second quarter ($46.5M vs $159.7M) and first half ($204.7M vs $224.7M), largely due to a $199.5 million loss on extinguishment of debt in the current quarter.
- 3Adjusted earnings per diluted share showed an increase, with Q2 at $0.49 (vs $0.43) and H1 at $0.90 (vs $0.84), excluding significant non-operational items.
- 4The company completed a significant refinancing in the second quarter, issuing new senior notes and using proceeds to redeem older, higher-interest debt, resulting in a substantial "Loss on extinguishment of debt."
- 5Capital expenditures increased to $481.7 million for the first half of 2011 compared to $385.4 million in the prior year, indicating investment in property and equipment.
- 6The company repurchased approximately $262.9 million of its common stock under its share repurchase program during the first half of 2011.
- 7The company amended and restated its revolving credit facility, increasing borrowing capacity to $1.25 billion and extending maturity to April 2016, maintaining strong liquidity with no borrowings outstanding at June 30, 2011.