8-KEarnings & ResultsExhibits & Filings

REPUBLIC SERVICES, INC. 8-K Report, Financial Results (Nov 5, 2020)

Filed November 5, 2020For Securities:RSG

Summary

Republic Services, Inc. (RSG) filed an 8-K on November 5, 2020, reporting its financial results for the three and nine months ended September 30, 2020, and providing updated financial guidance for the full year 2020. The company projects continued gradual economic improvement and updated its full-year diluted EPS guidance to a range of $3.09 to $3.12. Adjusted diluted EPS is expected to be between $3.37 and $3.40, excluding specific non-operational items. Furthermore, RSG raised its full-year outlook for cash provided by operating activities to $2,320 million - $2,395 million and adjusted free cash flow to $1,150 million - $1,200 million. These updated figures reflect the company's performance and its expectations for the remainder of the year, signaling a potentially positive outlook for investors despite ongoing economic uncertainties. The filing also emphasizes the company's use of adjusted metrics to provide a clearer view of ongoing operational performance.

Key Highlights

  • 1Republic Services provided updated financial guidance for the full year 2020, reflecting expectations of continued gradual economic improvement.
  • 2Diluted earnings per share (EPS) guidance for 2020 was set in a range of $3.09 to $3.12.
  • 3Adjusted diluted EPS guidance for 2020 is projected between $3.37 and $3.40, excluding specific one-time or non-recurring items.
  • 4Cash provided by operating activities for 2020 is now expected to be between $2,320 million and $2,395 million.
  • 5Adjusted free cash flow guidance for 2020 was raised to a range of $1,150 million to $1,200 million.
  • 6The company utilizes adjusted EPS and adjusted free cash flow to offer a clearer perspective on ongoing operational performance.
  • 7The filing incorporates a press release dated November 5, 2020, detailing the Q3 2020 financial results.

Frequently Asked Questions

Republic Services updated its full-year 2020 guidance, expecting continued gradual economic improvement. Key projections include diluted EPS of $3.09 to $3.12 and adjusted diluted EPS of $3.37 to $3.40. Cash provided by operating activities is forecasted between $2,320 million and $2,395 million, with adjusted free cash flow expected to be between $1,150 million and $1,200 million.

Adjusted diluted EPS excludes items such as loss on extinguishment of debt, restructuring charges, loss on business divestitures and impairments, multiemployer pension fund withdrawal costs, and an insurance recovery related to the Bridgeton Landfill. Adjusted free cash flow is also adjusted for specific items related to property and equipment, restructuring, pension withdrawal costs, divestitures, debt extinguishment, and the Bridgeton insurance recovery.

Republic Services believes that presenting adjusted diluted EPS and adjusted free cash flow provides investors with a better understanding of the company's ongoing operational activities and performance, separate from the financial impact of certain items that may disproportionately affect results in a particular period. These adjusted measures are also used internally to assess performance and determine compensation.

The Bridgeton insurance recovery is an item that is excluded from the company's adjusted financial metrics. The filing indicates that this recovery is related to the closed Bridgeton Landfill in Missouri and has a financial impact that the company chooses to report separately from its core operational results.