Summary
Republic Services, Inc. (RSG) filed an 8-K on February 8, 2018, to announce its fourth-quarter and full-year 2017 results and provide its financial guidance for fiscal year 2018. The company's guidance for 2018 indicates expectations for continued operational strength. Key financial projections include diluted earnings per share (EPS) expected to range between $2.99 and $3.04, and adjusted diluted EPS (excluding restructuring charges) projected at $3.05 to $3.10. The company also provided guidance on cash flow generation, with cash provided by operating activities anticipated to be between $2,117 million and $2,142 million. Furthermore, adjusted free cash flow is forecasted to be in the range of $1,090 million to $1,115 million.
Key Highlights
- 1Republic Services issued its Q4 and FY 2017 earnings press release, incorporated as Exhibit 99.1.
- 2Full-year 2018 diluted EPS guidance is projected between $2.99 and $3.04.
- 3Full-year 2018 adjusted diluted EPS guidance (excluding restructuring charges) is projected between $3.05 and $3.10.
- 4Cash provided by operating activities for 2018 is expected to be in the range of $2,117 million to $2,142 million.
- 5Adjusted free cash flow for 2018 is guided to be between $1,090 million and $1,115 million.
- 6The company's guidance assumes an effective tax rate of 27% for 2018.
- 7Republic Services emphasizes the utility of adjusted EPS and adjusted free cash flow for understanding ongoing operational performance, while noting potential comparability issues with other companies' metrics.
Frequently Asked Questions
For fiscal year 2018, Republic Services projects diluted earnings per share to be between $2.99 and $3.04. Adjusted diluted earnings per share, excluding restructuring charges, is expected to be in the range of $3.05 to $3.10. The company anticipates cash provided by operating activities to be between $2,117 million and $2,142 million, and adjusted free cash flow to be between $1,090 million and $1,115 million.
Republic Services presents adjusted diluted EPS and adjusted free cash flow to provide investors with insights into the company's ongoing operational performance, separate from the financial impact of certain items like restructuring charges. They believe these adjusted measures help in understanding recurring operational activities and financial strategy execution, though they caution that their definitions may not be comparable to similar measures presented by other companies.
The company's financial guidance for 2018, including its EPS projections, assumes an effective tax rate of 27 percent.