01—Abstract
Summary
Summary of the 10-Q filed May 6, 2021. Cited figures are marked; the original filing is the authoritative source.
Republic Services, Inc. reported solid financial results for the first quarter of 2021, demonstrating resilience and growth in a dynamic economic environment.
Revenue increased by 1.7% to $2.596 billiona compared to the prior year's first quarter, driven by a 2.3% increase in average yield and contributions from acquisitions. Net income attributable to the company rose significantly to $295.9 million, or $0.93 per diluted share, from $246.3 million, or $0.77 per diluted share, in the first quarter of 2020. The company managed its costs effectively, with operating income increasing by 13.7% year-over-year to $492.4 million.
This improved profitability reflects disciplined cost management, even as the company continued to invest in its operations and address ongoing market dynamics, including the residual impacts of the COVID-19 pandemic. Republic Services ended the quarter with a strong balance sheet and ample liquidity, positioning it well for continued operational execution, strategic acquisitions, and returning value to shareholders through dividends and share repurchases. The company also provided updated full-year 2021 guidance for adjusted diluted earnings per share, indicating confidence in its ongoing performance and strategic direction.
02—Key points
Key Highlights
- Revenue increased by 1.7% to $2.596 billion for the three months ended March 31, 2021, compared to $2.554 billion for the same period in 2020.
- Net income attributable to Republic Services, Inc. increased by 20.1% to $295.9 million ($0.93 per diluted share) for the first quarter of 2021, up from $246.3 million ($0.77 per diluted share) in the prior year.
- Operating income grew by 13.7% to $492.4 million, indicating strong operational performance and effective cost management.
- The company reported updated full-year 2021 guidance for adjusted diluted earnings per share to be between $3.74 and $3.79.
- Acquisitions, net of divestitures, contributed 1.0% to revenue growth.
- The company ended the quarter with a robust cash position and ample availability under its credit facilities.
- Cash provided by operating activities increased by 11.0% to $661.0 million for the first three months of 2021 compared to the prior year.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2021, Republic Services, Inc. kept $0.11.
- Revenue$2.60B100.0%
- Cost of revenue−$1.53B59.1%
- Gross profit$1.06B40.9%
- Operating costs−$569.7M21.9%
- Operating income$492.4M19.0%
- Interest, other & tax−$196.0M7.6%
- Net income$296.4M11.4%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2021filed May 6, 2021Financial Statements
Q1 FY2021 against Q1 FY2020
| Line item | Q1 FY2021Q1 FY2020 | Change |
|---|---|---|
| Revenue | $2.60B$2.55B | +1.6% |
| Cost of Revenue | $1.53B$1.55B | −1.0% |
| Gross Profit | $1.06B$1.00B | +5.8% |
| SG&A Expenses | $265.40M$277.10M | −4.2% |
| Operating Income | $492.40M$433.10M | +13.7% |
| Interest Expense | $78.40M$96.70M | −18.9% |
| Net Income | $296.40M$246.80M | +20.1% |
| EPS (Basic) | $0.93$0.77 | +20.8% |
| EPS (Diluted) | $0.93$0.77 | +20.8% |
| Shares Outstanding (Basic) | 319.44M319.58M | 0.0% |
| Shares Outstanding (Diluted) | 319.83M320.23M | −0.1% |
05—Questions
Frequently Asked Questions
What was Republic Services' revenue performance in the first quarter of 2021?
Republic Services reported a 1.7% increase in revenue for the first quarter of 2021, reaching $2.596 billion, up from $2.554 billion in the same period of 2020. This growth was primarily driven by an increase in average yield (pricing) and contributions from acquisitions.
How did the company's profitability change in Q1 2021?
Profitability saw a significant improvement. Net income attributable to Republic Services, Inc. increased by 20.1% to $295.9 million ($0.93 per diluted share) in the first quarter of 2021, compared to $246.3 million ($0.77 per diluted share) in the first quarter of 2020. Operating income also rose by 13.7% to $492.4 million.
What is the company's outlook for the full year 2021?
Republic Services provided updated guidance for full-year 2021 adjusted diluted earnings per share, projecting it to be between $3.74 and $3.79. This guidance reflects the company's confidence in its operational performance and strategic initiatives for the remainder of the year.
How has the company managed its debt and liquidity?
The company maintained a solid financial position. Cash provided by operating activities increased significantly, and Republic Services had substantial availability under its credit facilities. The company's total debt to EBITDA ratio was well within its covenant limits, indicating strong financial health and liquidity.
06—Continue