Summary
Republic Services, Inc. (RSG) reported its first quarter 2014 financial results, showing a year-over-year increase in revenue and net income attributable to the company. Revenue grew by 3.8% to $2,073.7 million, driven by a combination of average yield increases, volume growth, and acquisitions. Net income attributable to Republic Services, Inc. rose to $132.5 million ($0.37 per diluted share) from $124.6 million ($0.34 per diluted share) in the prior year's quarter, reflecting improved operational performance and management of costs. The company's balance sheet remained robust, with total assets of $19,842.5 million. Key liabilities include long-term debt of $7,007.9 million. Management highlighted operational efficiency improvements and strategic growth initiatives as key drivers. Despite some environmental remediation charges, particularly related to the Bridgeton Landfill, the company demonstrated a solid operational performance, generating significant cash flow from operations. Investors should note the ongoing efforts to manage environmental liabilities and the company's continued focus on returning capital to shareholders through dividends and share repurchases.
Financial Highlights
54 data points| Revenue | $2.08B |
| Cost of Revenue | $1.32B |
| Gross Profit | $752.50M |
| SG&A Expenses | $213.80M |
| Operating Income | $306.10M |
| Interest Expense | $87.00M |
| Net Income | $132.50M |
| EPS (Basic) | $0.37 |
| EPS (Diluted) | $0.37 |
| Shares Outstanding (Basic) | 359.78M |
| Shares Outstanding (Diluted) | 360.97M |
Key Highlights
- 1Revenue increased by 3.8% to $2,073.7 million for the three months ended March 31, 2014, compared to $1,998.6 million in the prior year period.
- 2Net income attributable to Republic Services, Inc. increased to $132.5 million ($0.37 per diluted share) from $124.6 million ($0.34 per diluted share) in the first quarter of 2013.
- 3Operating income improved to $306.1 million, up from $274.2 million in the prior year's quarter, indicating better operational efficiency.
- 4The company continued its share repurchase program, buying back 3.9 million shares for $132.2 million in the first quarter of 2014.
- 5Cash provided by operating activities was $396.4 million, a slight decrease from $419.8 million in the prior year, but still strong.
- 6The company had significant accrued landfill and environmental costs totaling $1,665.7 million.
- 7Republic Services maintains substantial liquidity with $1,505.6 million in available credit facilities as of March 31, 2014, with no outstanding borrowings.