Summary
Republic Services, Inc. (RSG) filed an 8-K on July 26, 2018, primarily to report its financial results for the second quarter of 2018 and provide updated guidance. The company reaffirmed its full-year diluted earnings per share (EPS) guidance, projecting a range of $2.99 to $3.04, and adjusted diluted EPS between $3.05 and $3.10. This adjusted EPS excludes restructuring charges and significant incremental contract startup costs related to a large municipal contract, which the company highlights as unusual in magnitude and timing. Furthermore, the filing disclosed a positive development for shareholders: the board of directors approved a 3-cent increase in the regular quarterly dividend, raising it to $0.375 per share. The company also provided guidance for cash flow, expecting cash provided by operating activities between $2,145 million and $2,170 million for the full year. Adjusted free cash flow is projected to be between $1,090 million and $1,115 million, a non-GAAP measure used by the company to assess ongoing operational performance.
Key Highlights
- 1Republic Services reaffirmed its full-year 2018 diluted EPS guidance of $2.99 to $3.04.
- 2The company expects adjusted diluted EPS for full-year 2018 to be in the range of $3.05 to $3.10, excluding specific restructuring and large municipal contract startup costs.
- 3Full-year 2018 guidance for cash provided by operating activities is projected between $2,145 million and $2,170 million.
- 4Adjusted free cash flow for 2018 is forecasted to be between $1,090 million and $1,115 million.
- 5The Board of Directors approved a 3-cent increase in the regular quarterly dividend to $0.375 per share.
- 6The filing incorporates by reference press releases announcing Q2 2018 financial results and the dividend increase.
- 7Pro forma 2017 financial results reflecting the adoption of a new revenue recognition standard are also provided as supplemental information.