Summary
Republic Services, Inc. (RSG) reported its third-quarter and year-to-date financial results for the period ending September 30, 2012. The company experienced a decrease in revenue for both the three and nine months ended September 30, 2012, compared to the prior year periods, primarily due to lower volumes and decreased recycling commodity prices. Despite the revenue decline, the company managed its costs effectively, with improvements in operational efficiency and a focus on core pricing strategies. Key financial highlights include a significant reduction in interest expense due to debt refinancing and a substantial charge related to withdrawal liability from the Central States Pension Fund. The company also continues to actively manage its capital structure through share repurchases and dividend payments. Looking ahead, Republic Services is implementing a restructuring initiative to enhance efficiency and reduce future operating expenses, signaling a proactive approach to navigating the competitive landscape.
Financial Highlights
54 data points| Revenue | $2.05B |
| Cost of Revenue | $1.28B |
| Gross Profit | $766.40M |
| SG&A Expenses | $193.80M |
| Operating Income | $317.90M |
| Interest Expense | $93.20M |
| Net Income | $152.70M |
| EPS (Basic) | $0.42 |
| EPS (Diluted) | $0.42 |
| Shares Outstanding (Basic) | 365.40M |
| Shares Outstanding (Diluted) | 366.43M |
Key Highlights
- 1Revenue for the nine months ended September 30, 2012, decreased to $6,089.9 million from $6,167.7 million in the same period of 2011, attributed to lower volumes and recycling commodity prices, partially offset by core price increases and acquisitions.
- 2Net income attributable to Republic Services, Inc. for the nine months ended September 30, 2012, was $444.8 million, or $1.20 per diluted share, compared to $398.2 million, or $1.05 per diluted share, in the prior year period. This increase is despite lower reported revenue, highlighting improved cost management and specific charges in the prior year.
- 3The company recorded a significant charge of approximately $31 million in the third quarter of 2012 for its partial withdrawal liability from the Central States, Southeast and Southwest Areas Pension Fund.
- 4Interest expense decreased due to debt refinancing activities. For the nine months ended September 30, 2012, interest expense was $296.3 million compared to $335.4 million in the prior year.
- 5Republic Services is undertaking a restructuring initiative in October 2012, consolidating regions and reducing staffing, expected to generate approximately $23 million in annual SG&A savings.
- 6The company repurchased approximately 7.6 million shares of its stock for $207.5 million during the first nine months of 2012, continuing its share repurchase program.
- 7Capital expenditures for the nine months ended September 30, 2012, were $707.4 million, primarily for property and equipment, reflecting ongoing investment in the business.