Republic Services, Inc. Reports Third Quarter 2024 Results
Third Quarter Total Revenue Growth of 6.5 Percent
Reported Earnings Per Share of $1.80 and Adjusted Earnings Per Share of $1.81
Expanded Net Income Margin 130 Basis Points and Adjusted EBITDA Margin 210 Basis Points
Generated Year-to-Date Cash Flow from Operations of $2.91 Billion and Adjusted Free Cash Flow of $1.74 Billion
Certified as a Great Place to Work® for Eighth Consecutive Year
PHOENIX, Oct. 29, 2024 /PRNewswire/ -- Republic Services, Inc. (NYSE:RSG) today reported net income of $565.7 million, or $1.80 per diluted share, for the three months ended September 30, 2024, versus $480.2 million, or $1.52 per diluted share, for the comparable 2023 period. Excluding certain expenses and other items, on an adjusted basis, net income for the three months ended September 30, 2024, was $568.3 million, or $1.81 per diluted share, versus $488.3 million, or $1.54 per diluted share, for the comparable 2023 period.
"Our strong performance during the third quarter is a direct result of executing our strategic priorities," said Jon Vander Ark, president and chief executive officer. "By pricing ahead of cost inflation and effective cost management, we delivered double-digit growth in adjusted EBITDA and EPS, and expanded adjusted EBITDA margin by more than 200 basis points. Our results continue to demonstrate the power of a well-designed strategy in driving sustainable growth and the value created for all stakeholders."
Third-Quarter and Year-to-Date 2024 Highlights:
Third quarter total revenue growth of 6.5 percent includes 4.2 percent organic growth and 2.3 percent growth from acquisitions.
Third quarter core price on total revenue increased revenue by 6.2 percent. Core price on related business revenue increased revenue by 7.4 percent, which consisted of 9.1 percent in the open market and 4.8 percent in the restricted portion of the business.
Third quarter revenue growth from average yield on total revenue was 4.6 percent, and volume decreased revenue by 1.2 percent. Revenue growth from average yield on related business revenue was 5.5 percent, and volume decreased related business revenue by 1.5 percent.
Third quarter net income was $565.7 million, or a margin of 13.9 percent.
Third quarter EPS was $1.80 per share, an increase of 18.4 percent over the prior year.
Third quarter adjusted EPS, a non-GAAP measure, was $1.81 per share, an increase of 17.5 percent over the prior year.
Third quarter adjusted EBITDA, a non-GAAP measure, was $1,303.3 million, and adjusted EBITDA margin, a non-GAAP measure, was 32.0 percent of revenue, an increase of 210 basis points over the prior year.
Year-to-date cash invested in acquisitions, including an investment in a post-collection business, was $104.4 million.
Year-to-date cash returned to shareholders was $834.3 million, which included $329.5 million of share repurchases and $504.8 million of dividends paid.
The Company's average recycled commodity price per ton sold at our recycling centers during the third quarter was $177. This represents an increase of $65 per ton over the prior year.
The Company completed and commenced operations on two renewable natural gas projects during the quarter.
The Company expects revenue to be near the low end of its full-year 2024 guidance range. The Company expects to achieve the high end of its full-year 2024 adjusted EBITDA guidance range.
Company Declared Quarterly Dividend
Republic previously announced that its Board of Directors declared a regular quarterly dividend of $0.58 per share for shareholders of record on January 2, 2025. The dividend will be paid on January 15, 2025.
Presentation of Certain Performance Metrics and Non-GAAP Measures
Adjusted diluted earnings per share, adjusted net income - Republic, EBITDA, adjusted EBITDA, adjusted EBITDA margin, adjusted EBITDA by business type, adjusted EBITDA margin by business type and adjusted free cash flow are described in the Performance Metrics and Reconciliations of Certain Non-GAAP Measures section of this document.
About Republic Services
Republic Services, Inc. is a leader in the environmental services industry. Through its subsidiaries, the Company provides customers with the most complete set of products and services, including recycling, solid waste, special waste, hazardous waste and field services. Republic's industry-leading commitments to advance circularity and support decarbonization are helping deliver on its vision to partner with customers to create a more sustainable world. For more information, please visit RepublicServices.com
For more information, contact:
Media Inquiries
Investor Inquiries
Roman Blahoski (480) 718-0328
Aaron Evans (480) 718-0309
SUPPLEMENTAL UNAUDITED FINANCIAL INFORMATION
AND OPERATING DATA
REPUBLIC SERVICES, INC.
CONSOLIDATED BALANCE SHEETS
(in millions, except per share amounts)
September 30,
December 31,
2024
2023
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents
$ 83.4
$ 140.0
Accounts receivable, less allowance for doubtful accounts and other of $75.2 and $83.2, respectively
1,847.5
1,768.4
Prepaid expenses and other current assets
417.5
472.6
Total current assets
2,348.4
2,381.0
Restricted cash and marketable securities
203.1
163.6
Property and equipment, net
11,525.6
11,350.9
Goodwill
15,883.1
15,834.5
Other intangible assets, net
454.8
496.2
Other assets
1,399.2
1,183.9
Total assets
$ 31,814.2
$ 31,410.1
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable
$ 1,225.4
$ 1,411.5
Notes payable and current maturities of long-term debt
513.0
932.3
Deferred revenue
485.5
467.3
Accrued landfill and environmental costs, current portion
140.9
141.6
Accrued interest
114.4
104.1
Other accrued liabilities
1,162.3
1,171.5
Total current liabilities
3,641.5
4,228.3
Long-term debt, net of current maturities
12,047.4
11,887.1
Accrued landfill and environmental costs, net of current portion
2,347.1
2,281.0
Deferred income taxes and other long-term tax liabilities, net
1,591.0
1,526.8
Insurance reserves, net of current portion
381.8
348.8
Other long-term liabilities
575.2
594.6
Commitments and contingencies
Stockholders' equity:
Preferred stock, par value $0.01 per share; 50 shares authorized; none issued
—
—
Common stock, par value $0.01 per share; 750 shares authorized; 321.3 and 320.7 issued including shares held in treasury, respectively
3.2
3.2
Additional paid-in capital
2,945.9
2,900.8
Retained earnings
9,443.9
8,433.9
Treasury stock, at cost; 8.0 and 6.1 shares, respectively
(1,145.6)
(783.5)
Accumulated other comprehensive loss, net of tax
(18.6)
(12.1)
Total Republic Services, Inc. stockholders' equity
11,228.8
10,542.3
Non-controlling interests in consolidated subsidiary
1.4
1.2
Total stockholders' equity
11,230.2
10,543.5
Total liabilities and stockholders' equity
$ 31,814.2
$ 31,410.1
REPUBLIC SERVICES, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
(in millions, except per share data)
Three Months Ended September 30,
Nine Months Ended September 30,
2024
2023
2024
2023
Revenue
$ 4,076.2
$ 3,825.9
$ 11,986.0
$ 11,132.9
Expenses:
Cost of operations
2,366.9
2,284.3
7,032.7
6,678.0
Depreciation, amortization and depletion
422.0
382.3
1,234.2
1,099.4
Accretion
26.7
24.6
80.1
73.2
Selling, general and administrative
406.0
402.1
1,227.6
1,177.3
Loss (gain) on business divestitures and impairments, net
0.5
(1.5)
(0.9)
(1.5)
Restructuring charges
8.2
6.3
19.7
27.3
Operating income
845.9
727.8
2,392.6
2,079.2
Interest expense
(138.2)
(127.6)
(405.8)
(378.8)
Loss on extinguishment of debt
(2.4)
—
(2.4)
(0.2)
(Loss) income from unconsolidated equity method investments
(73.4)
2.8
(116.0)
0.2
Interest income
4.3
2.0
7.4
5.0
Other income (loss), net
10.3
1.3
23.5
3.2
Income before income taxes
646.5
606.3
1,899.3
1,708.6
Provision for income taxes
80.6
126.0
367.8
416.9
Net income
565.9
480.3
1,531.5
1,291.7
Net loss attributable to non-controlling interests in consolidated subsidiary
(0.2)
(0.1)
(0.5)
(0.3)
Net income attributable to Republic Services, Inc.
$ 565.7
$ 480.2
$ 1,531.0
$ 1,291.4
Basic earnings per share attributable to Republic Services, Inc. stockholders:
Basic earnings per share
$ 1.80
$ 1.52
$ 4.86
$ 4.08
Weighted average common shares outstanding
314.0
316.1
314.7
316.5
Diluted earnings per share attributable to Republic Services, Inc. stockholders:
Diluted earnings per share
$ 1.80
$ 1.52
$ 4.86
$ 4.07
Weighted average common and common equivalent shares outstanding
314.4
316.6
315.1
317.0
Cash dividends per common share
$ 0.580
$ 0.535
$ 1.650
$ 1.525
REPUBLIC SERVICES, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions)
Nine Months Ended September 30,
2024
2023
Cash provided by operating activities:
Net income
$ 1,531.5
$ 1,291.7
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation, amortization, depletion and accretion
1,314.3
1,172.6
Non-cash interest expense
54.0
65.5
Stock-based compensation
31.0
31.7
Deferred tax provision
70.2
52.2
Provision for doubtful accounts, net of adjustments
19.9
38.6
Loss on extinguishment of debt
2.4
0.2
Loss (gain) on disposition of assets and asset impairments, net
5.9
(3.7)
Loss (income) from unconsolidated equity method investments
116.0
(0.2)
Other non-cash items
(10.9)
(0.6)
Change in assets and liabilities, net of effects from business acquisitions and divestitures:
Accounts receivable
(99.9)
(161.0)
Prepaid expenses and other assets
(59.5)
121.4
Accounts payable
(26.3)
93.5
Capping, closure and post-closure expenditures
(35.3)
(40.5)
Remediation expenditures
(44.9)
(31.4)
Other liabilities
21.9
86.9
Proceeds for retirement of certain hedging relationships
23.7
2.4
Cash provided by operating activities
2,914.0
2,719.3
Cash used in investing activities:
Purchases of property and equipment
(1,357.4)
(1,083.2)
Proceeds from sales of property and equipment
8.6
25.0
Cash used in acquisitions and investments, net of cash and restricted cash acquired
(400.4)
(1,051.1)
Cash received from business divestitures
2.5
1.7
Purchases of restricted marketable securities
(17.9)
(13.8)
Sales of restricted marketable securities
16.4
13.1
Other
(0.3)
7.5
Cash used in investing activities
(1,748.5)
(2,100.8)
Cash used in financing activities:
Proceeds from credit facilities and notes payable, net of fees
15,616.1
27,940.2
Proceeds from issuance of senior notes, net of discount and fees
888.8
1,183.6
Payments of credit facilities and notes payable
(16,835.1)
(29,024.7)
Issuances of common stock, net
(17.8)
(4.3)
Purchases of common stock for treasury
(320.7)
(190.4)
Cash dividends paid
(504.8)
(469.5)
Distributions paid to non-controlling interests in consolidated subsidiary
(0.4)
—
Contingent consideration payments
(14.2)
(14.1)
Cash used in financing activities
(1,188.1)
(579.2)
Effect of foreign exchange rate changes on cash
1.1
0.2
(Decrease) increase in cash, cash equivalents, restricted cash and restricted cash equivalents
(21.5)
39.5
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period
227.5
214.3
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period
$ 206.0
$ 253.8
You should read the following information in conjunction with our audited consolidated financial statements and notes thereto appearing in our Annual Report on Form 10-K as of and for the year ended December 31, 2023. All amounts below are in millions and as a percentage of our revenue, except per share data.
REVENUE
The following table reflects our total revenue by line of business for the three and nine months ended September 30, 2024 and 2023:
Three Months Ended September 30,
Nine Months Ended September 30,
2024
2023
2024
2023
Collection:
Residential
$ 739.7
18.1 %
$ 718.2
18.8 %
$ 2,196.1
18.3 %
$ 2,103.4
18.9 %
Small-container
1,209.1
29.7
1,126.3
29.4
3,599.2
30.0
3,270.2
29.4
Large-container
774.6
19.0
753.0
19.7
2,277.7
19.0
2,192.4
19.7
Other
18.4
0.5
19.0
0.5
54.4
0.5
