Summary
Republic Services, Inc. reported revenues of $1,998.6 million for the first quarter of 2013, a slight increase of 0.8% from the prior year's $1,982.4 million. Despite revenue growth, net income attributable to Republic Services, Inc. declined to $124.6 million ($0.34 per diluted share) from $142.9 million ($0.38 per diluted share) in the same period of 2012. This decrease was largely driven by significant one-time charges, most notably a $62.2 million negotiation and withdrawal cost related to the Central States Pension Fund and $4.9 million in restructuring charges. Excluding these items, adjusted net income was $167.4 million, resulting in adjusted diluted EPS of $0.46, an increase from the prior year's adjusted figure. The company's operational performance saw mixed results. While core price increases and acquisitions contributed positively, a decrease in volume (partly due to one less workday) and lower recycling commodity prices impacted revenue. Cost of operations increased as a percentage of revenue, driven by higher labor costs and maintenance expenses, although partially offset by lower fuel costs. The company continues to invest in its long-term infrastructure, with significant capital expenditures and a large pipeline of future landfill investments. From a balance sheet perspective, Republic Services maintained a stable financial position with total assets of $19.6 billion. The company managed its debt effectively, with a debt-to-EBITDA ratio of 3.07, well within its covenant requirements. The company also demonstrated strong free cash flow generation of $208.2 million for the quarter, up significantly from $64.8 million in the prior year, underscoring its ability to fund operations and shareholder returns.
Financial Highlights
54 data points| Revenue | $2.00B |
| Cost of Revenue | $1.22B |
| Gross Profit | $775.50M |
| SG&A Expenses | $206.50M |
| Operating Income | $274.20M |
| Interest Expense | $89.60M |
| Net Income | $124.60M |
| EPS (Basic) | $0.34 |
| EPS (Diluted) | $0.34 |
| Shares Outstanding (Basic) | 362.66M |
| Shares Outstanding (Diluted) | 364.09M |
Key Highlights
- 1Revenue increased by 0.8% to $1,998.6 million for Q1 2013, driven by core price increases and acquisitions, partially offset by lower volumes and recycling commodity prices.
- 2Net income attributable to Republic Services, Inc. decreased to $124.6 million ($0.34 per diluted share) from $142.9 million ($0.38 per diluted share) in Q1 2012.
- 3Significant one-time charges impacting reported net income include $62.2 million for Central States Pension Fund withdrawal costs and $4.9 million in restructuring charges.
- 4Adjusted net income (excluding special items) was $167.4 million, leading to adjusted diluted EPS of $0.46, an increase from the prior year's adjusted $0.38.
- 5Operating income margin declined to 13.7% from 16.5% year-over-year, primarily due to the pension fund withdrawal costs and higher cost of operations.
- 6Free cash flow significantly increased to $208.2 million from $64.8 million in the prior year, indicating strong cash generation from operations.
- 7The company maintained strong liquidity with $130.1 million in cash and cash equivalents and $1,519.4 million in availability under its credit facilities as of March 31, 2013.