Summary
Republic Services, Inc. (RSG) reported its second quarter 2019 financial results, demonstrating continued revenue growth and operational execution. For the six months ended June 30, 2019, revenue increased by 2.6% to $5.1 billion compared to the same period in 2018. This growth was driven by a 2.9% increase in average yield, reflecting effective pricing strategies across its service lines, and was further supported by acquisitions contributing 0.5% to revenue. Operating income also saw an increase, rising to $860.2 million for the six-month period, indicating strong operational leverage. Key financial strengths include a solid operating cash flow of $1.14 billion for the first six months of 2019, providing ample resources for capital expenditures, acquisitions, and shareholder returns. The company maintained a healthy debt-to-EBITDA ratio of 2.96, well within its credit facility covenants, highlighting its robust financial position. Management also announced an 8% increase in its quarterly dividend to $0.405 per share, signaling confidence in future performance and a commitment to returning value to shareholders.
Financial Highlights
55 data points| Revenue | $2.61B |
| Cost of Revenue | $1.62B |
| Gross Profit | $988.30M |
| SG&A Expenses | $264.50M |
| Operating Income | $437.40M |
| Interest Expense | $98.50M |
| Net Income | $251.50M |
| EPS (Basic) | $0.78 |
| EPS (Diluted) | $0.78 |
| Shares Outstanding (Basic) | 321.72M |
| Shares Outstanding (Diluted) | 322.76M |
Key Highlights
- 1Revenue for the six months ended June 30, 2019, increased by 2.6% to $5.1 billion, driven by average yield increases and acquisitions.
- 2Operating income for the six months ended June 30, 2019, increased to $860.2 million, up from $812.4 million in the prior year period.
- 3The company generated $1.14 billion in cash flow from operations for the first six months of 2019, demonstrating strong cash generation.
- 4Total debt as a percentage of EBITDA was 2.96 as of June 30, 2019, indicating a healthy leverage position and compliance with debt covenants.
- 5Republic Services announced an 8% increase in its quarterly dividend to $0.405 per share, payable in October 2019.
- 6The company's effective tax rate for the period was 24.3%, a slight decrease from the prior year's comparable period.
- 7Acquisition activity contributed positively to revenue growth, with acquisitions (net of divestitures) increasing revenue by 0.5% for the six-month period.