Summary
Republic Services, Inc. (RSG) filed an 8-K on July 27, 2017, primarily to furnish two press releases. The first announcement detailed the company's financial results for the second quarter and first half of 2017, and importantly, revised its full-year 2017 earnings per share (EPS) guidance upwards. The company now anticipates diluted EPS in the range of $2.32 to $2.35, and adjusted diluted EPS between $2.36 and $2.39. The adjusted EPS metric excludes certain one-time or unusual items, such as restructuring charges, pension withdrawal costs, asset disposition impacts, and specific large municipal contract startup costs, which the company believes offers a clearer view of ongoing operational performance. The second press release highlighted a significant return of capital to shareholders. Republic Services' Board of Directors approved an increase in the regular quarterly dividend by 2.5 cents, bringing the new quarterly dividend rate to $0.345 per share. This dividend increase signals management's confidence in the company's financial health and its ability to generate consistent cash flows to support shareholder returns.
Key Highlights
- 1Republic Services raised its full-year 2017 diluted EPS guidance to $2.32-$2.35.
- 2Adjusted diluted EPS guidance for full-year 2017 was also increased to $2.36-$2.39.
- 3Adjusted EPS excludes restructuring charges, pension withdrawal costs, asset disposition impacts, and specific large municipal contract startup costs.
- 4The company believes adjusted EPS provides a better understanding of ongoing operational performance.
- 5The Board of Directors approved a 2.5 cent increase in the regular quarterly dividend.
- 6The new regular quarterly dividend rate is set at $0.345 per share.