10-QPeriod: Q2 FY2024

REPUBLIC SERVICES, INC. Quarterly Report for Q2 Ended Jun 30, 2024

Filed July 25, 2024For Securities:RSG

Summary

Republic Services, Inc. (RSG) reported a strong second quarter for 2024, demonstrating robust revenue growth and improved profitability. For the three months ended June 30, 2024, revenue increased by 8.6% to $4.05 billion, while net income attributable to the company surged by 19.7% to $511.5 million, translating to diluted EPS of $1.62, a significant increase from $1.35 in the prior year. This growth was driven by a combination of price increases (average yield) across its service lines and contributions from acquisitions. The company continues to execute its growth strategy, with acquisitions contributing 3.0% to revenue growth in the quarter. Cost management remains a focus, with cost of operations as a percentage of revenue improving slightly year-over-year. The company also provided an updated full-year 2024 adjusted diluted EPS guidance of $6.15 to $6.20, indicating confidence in its continued performance. RSG's strong operational execution and strategic focus on growth and efficiency position it well for future performance.

Financial Highlights

51 data points
Beta

Revenue

$4.05B

41.1% Gross Margin

Net Income

$512.00M

12.6% Net Margin

EPS (Diluted)

$1.62

Total Assets

$31.93B

Cash & Equivalents

$491.00M

Free Cash Flow

$697.00M

Financial Statements
Beta
Revenue$4.05B
Cost of Revenue$2.38B
Gross Profit$1.67B
SG&A Expenses$407.00M
Operating Income$814.00M
Net Income$512.00M
EPS (Basic)$1.62
EPS (Diluted)$1.62
Shares Outstanding (Basic)314.91M
Shares Outstanding (Diluted)315.24M

Key Highlights

  • 1Revenue for the three months ended June 30, 2024, increased by 8.6% to $4.05 billion, compared to $3.73 billion in the prior year period.
  • 2Net income attributable to Republic Services, Inc. rose to $511.5 million for the quarter, an increase of 19.7% year-over-year.
  • 3Diluted earnings per share (EPS) increased to $1.62 from $1.35 in the second quarter of 2023.
  • 4Acquisitions contributed 3.0% to revenue growth in the quarter, reflecting the company's ongoing expansion strategy.
  • 5The company updated its full-year 2024 adjusted diluted earnings per share guidance to $6.15 - $6.20.
  • 6Operating income increased to $813.8 million from $707.2 million in the same period last year.
  • 7Total assets grew to $31.93 billion as of June 30, 2024, from $31.41 billion at the end of 2023.

Frequently Asked Questions

Revenue growth in Q2 2024 was primarily driven by a 5.5% increase in average yield (price increases across service lines) and a 3.0% contribution from acquisitions. Volume showed a slight decrease of 0.8%.

The company's cost of operations as a percentage of revenue improved slightly to 58.8% in Q2 2024 from 59.7% in Q2 2023. Key cost items like labor and maintenance increased in dollar terms due to wage inflation and acquisitions, but were partially offset by lower fuel costs.

Republic Services updated its full-year 2024 adjusted diluted earnings per share guidance to a range of $6.15 to $6.20, indicating a positive outlook for the rest of the year. This guidance reflects confidence in continued operational performance and growth initiatives.

As of June 30, 2024, total debt was $13.0 billion. The company has been actively managing its debt, including issuing new senior notes and paying down existing credit facilities and term loans. Its total debt to EBITDA ratio was approximately 2.8, well within its covenant limit of 3.75.