Summary
Republic Services, Inc. (RSG) filed an 8-K on February 16, 2017, to announce its financial results for the fourth quarter and full year ended December 31, 2016, and to provide its financial guidance for fiscal year 2017. The company provided its outlook for key financial metrics including earnings per share (EPS), adjusted EPS, cash from operations, and adjusted free cash flow, signaling its strategic financial priorities for the upcoming year. Investors should note the company's emphasis on adjusted metrics, specifically adjusted diluted earnings per share and adjusted free cash flow. RSG clearly defines these non-GAAP measures, stating their exclusion of restructuring charges and withdrawal costs from multiemployer pension funds, and highlighting their use in understanding ongoing operational performance. The guidance suggests a stable economic outlook for 2017, with specific ranges provided for key performance indicators, offering a basis for investor expectations and valuation.
Key Highlights
- 1Republic Services issued its 2017 financial guidance alongside its Q4 and full-year 2016 results.
- 2Projected diluted EPS for 2017 is in the range of $2.29 to $2.33.
- 3Projected adjusted diluted EPS for 2017 is in the range of $2.32 to $2.36, excluding restructuring charges.
- 4The company anticipates cash provided by operating activities for 2017 to be between $1,836 million and $1,861 million.
- 5Adjusted free cash flow for 2017 is guided to be between $875 million and $900 million.
- 6The guidance assumes an effective tax rate of 39.5% and does not anticipate significant changes in the overall economy for 2017.