What are the key financial expectations for Republic Services in 2020?

For the full year 2020, Republic Services expects diluted earnings per share (EPS) to be in the range of $3.44 to $3.49. Adjusted diluted EPS, which excludes certain restructuring charges and multiemployer pension fund costs, is expected to be between $3.48 and $3.53. The company also guided cash provided by operating activities to be between $2,407 million and $2,457 million, and adjusted free cash flow to be between $1,175 million and $1,225 million.

Why does Republic Services report 'adjusted' financial metrics like adjusted EPS and adjusted free cash flow?

Republic Services uses adjusted metrics to provide investors with a clearer understanding of the company's ongoing operational performance. Adjusted diluted EPS excludes the impact of expected restructuring charges and withdrawal costs for certain multiemployer pension funds. Adjusted free cash flow also excludes specific cash outflows related to restructuring activities and a particular insurance recovery. The company believes these adjustments help isolate the results of core operations from items that may have a disproportionate impact in a given period.

What are the potential limitations of Republic Services' adjusted financial metrics?

The company acknowledges that its definitions of adjusted diluted EPS and adjusted free cash flow may not be comparable to similarly titled measures presented by other companies. Additionally, adjusted free cash flow does not represent cash available for discretionary spending because it excludes essential expenditures like debt service requirements and dividend payments.

What economic assumptions underpin the 2020 financial guidance?

Republic Services' 2020 financial guidance is based on current economic conditions and does not assume any significant changes in the overall economy for the year.

RSG 8-K: Earnings & Results

Summary

Republic Services, Inc. (RSG) filed an 8-K on February 13, 2020, to announce its financial results for the fourth quarter and full year ended December 31, 2019, and to provide its financial guidance for the full year 2020. The report includes a press release detailing these results and outlook. Investors should pay close attention to the provided guidance for 2020, which includes expectations for earnings per share and cash flow, as well as the company's methodology for presenting adjusted financial metrics. The company provided a financial outlook for 2020, expecting diluted earnings per share to range between $3.44 and $3.49, and adjusted diluted earnings per share between $3.48 and $3.53. Cash flow expectations include operating cash flow between $2,407 million and $2,457 million, and adjusted free cash flow between $1,175 million and $1,225 million. The company emphasizes its use of adjusted metrics, such as adjusted diluted EPS and adjusted free cash flow, to provide a clearer view of ongoing operational performance by excluding items like restructuring charges and multiemployer pension fund costs. Investors should understand the definitions and potential limitations of these adjusted measures when evaluating the company's performance.

Key Highlights

1Republic Services issued its Q4 and Full Year 2019 financial results alongside its 2020 financial guidance.
2Full-year 2020 guidance anticipates diluted EPS in the range of $3.44 to $3.49.
3Adjusted diluted EPS for 2020 is projected to be between $3.48 and $3.53, excluding certain charges.
4The company expects 2020 cash provided by operating activities to be between $2,407 million and $2,457 million.
5Adjusted free cash flow for 2020 is guided to be in the range of $1,175 million to $1,225 million.
6Republic Services clarifies its use of adjusted earnings per share and adjusted free cash flow, explaining they exclude specific non-recurring or unusual items to better reflect ongoing operations.
7The 2020 guidance is based on current economic conditions and does not anticipate significant changes in the overall economy.

REPUBLIC SERVICES, INC. 8-K Report, Financial Results (Feb 13, 2020)

Summary

Key Highlights

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