8-KEarnings & ResultsExhibits & Filings

REPUBLIC SERVICES, INC. 8-K Report, Financial Results (Feb 16, 2017)

Filed February 16, 2017For Securities:RSG

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.

Frequently Asked Questions

For fiscal year 2017, Republic Services anticipates diluted earnings per share (EPS) in the range of $2.29 to $2.33 and adjusted diluted EPS between $2.32 to $2.36. The company expects cash from operations to be between $1,836 million and $1,861 million, and adjusted free cash flow to range from $875 million to $900 million.

Republic Services presents 'adjusted diluted earnings per share' which excludes the impact of restructuring charges and withdrawal costs from multiemployer pension funds. The company believes this provides a clearer view of ongoing operational performance.

Adjusted free cash flow is defined as cash provided by operating activities, less property and equipment received, plus proceeds from the sale of property and equipment, and is exclusive of cash paid for restructuring activities (net of tax). The company uses this metric to assess recurring cash generation after certain expenditures.

The guidance is based on current economic conditions and does not assume any significant changes in the overall economy in 2017.