Summary
Republic Services, Inc. (RSG) reported its second-quarter 2013 financial results, showing a slight increase in revenue compared to the prior year, driven by a modest rise in average yield and acquisition contributions. However, net income and earnings per share saw a significant decline primarily due to substantial charges related to the Central States Pension Fund withdrawal liability and a large environmental remediation charge at the Bridgeton Landfill. While core operational performance remains relatively stable, these one-time or significant charges impacted the bottom line considerably for the quarter and the first half of the year. Despite the reported net income decline, management highlighted adjusted figures that excluded these significant charges, aiming to provide a clearer view of ongoing operational performance. The company also reaffirmed its full-year adjusted earnings per share guidance, indicating confidence in its core business operations. Dividend payouts continued, with an increase announced for the upcoming quarter, signaling a commitment to returning capital to shareholders. Investors should closely monitor the impact of the Central States Pension Fund and ongoing remediation efforts, as these are significant factors influencing profitability in the near to medium term.
Financial Highlights
54 data points| Revenue | $2.11B |
| Cost of Revenue | $1.41B |
| Gross Profit | $701.70M |
| SG&A Expenses | $228.20M |
| Operating Income | $181.20M |
| Interest Expense | $90.20M |
| Net Income | $56.30M |
| EPS (Basic) | $0.16 |
| EPS (Diluted) | $0.15 |
| Shares Outstanding (Basic) | 362.95M |
| Shares Outstanding (Diluted) | 364.39M |
Key Highlights
- 1Revenue for the six months ended June 30, 2013, increased by 1.7% to $4,110.3 million compared to $4,043.0 million for the same period in 2012.
- 2Net income attributable to Republic Services, Inc. decreased significantly to $56.3 million for the three months ended June 30, 2013, compared to $149.2 million in the prior year period.
- 3Diluted earnings per share also decreased to $0.15 for the three months ended June 30, 2013, from $0.40 in the same period of 2012.
- 4The company incurred substantial charges of $42.0 million and $99.9 million for partial withdrawal liability from the Central States Pension Fund during the three and six months ended June 30, 2013, respectively.
- 5A significant environmental remediation charge of $108.7 million was recorded for the Bridgeton Landfill during the second quarter of 2013.
- 6Republic Services reaffirmed its full-year 2013 guidance for adjusted diluted earnings per share, indicating a range of $1.86 to $1.91.
- 7The board of directors approved an increase in the quarterly dividend by 10.6% to $0.26 per share, to be paid in October 2013.