Summary
Republic Services, Inc. (RSG) reported its first-quarter 2012 financial results, showing modest revenue growth compared to the prior year. Revenue increased by 0.9% to $1.98 billion, driven by slight increases in core pricing and fuel surcharges, although this was partially offset by a decline in recycling commodity prices. Operating income saw a decrease of 13.1% year-over-year to $326.9 million, impacted by higher costs in labor, maintenance, transportation, and fuel, which outpaced revenue gains. Net income attributable to Republic Services, Inc. declined by 7.8% to $142.9 million, translating to diluted earnings per share of $0.38, down from $0.41 in the first quarter of 2011. The company continued its share repurchase program and paid quarterly dividends. Management noted ongoing efforts to manage costs and optimize operations, while also highlighting updated full-year 2012 guidance reflecting higher anticipated costs and current business conditions, including an expected charge related to the refinancing of senior notes.
Financial Highlights
54 data points| Revenue | $1.98B |
| Cost of Revenue | $1.20B |
| Gross Profit | $779.20M |
| SG&A Expenses | $222.40M |
| Operating Income | $326.90M |
| Interest Expense | $104.30M |
| Net Income | $142.90M |
| EPS (Basic) | $0.39 |
| EPS (Diluted) | $0.38 |
| Shares Outstanding (Basic) | 371.00M |
| Shares Outstanding (Diluted) | 372.49M |
Key Highlights
- 1Revenue increased by 0.9% to $1.98 billion for the three months ended March 31, 2012, compared to $1.96 billion in the same period of 2011.
- 2Operating income decreased by 13.1% to $326.9 million in Q1 2012 from $376.2 million in Q1 2011.
- 3Net income attributable to Republic Services, Inc. declined by 7.8% to $142.9 million ($0.38 per diluted share) in Q1 2012, from $158.2 million ($0.41 per diluted share) in Q1 2011.
- 4Cost of operations increased by 3.7% year-over-year, impacting operating margins, driven by higher labor, maintenance, and fuel costs.
- 5The company repurchased $9.0 million of its common stock during the quarter under its existing share repurchase program.
- 6Republic Services paid quarterly cash dividends of $0.22 per share, totaling $81.4 million for the quarter.
- 7The company updated its full-year 2012 guidance, anticipating adjusted diluted EPS between $1.86 to $1.90, reflecting higher expected costs.