Mar 31, 2020

Republic Services Q1 2020 Earnings Report

Reported strong first quarter results with adjusted earnings increasing by 5 percent over the prior year.

Key Takeaways

Republic Services reported a solid start to the year despite the impact of the pandemic in March. Revenue and adjusted EBITDA both increased by 3.4 percent, and the underlying adjusted EBITDA margin expanded by 30 basis points. The company is suspending its full-year 2020 detailed financial guidance due to the uncertainty of COVID-19 pandemic. However, assuming the economy continues to recover, the company expects to generate over $1 billion of adjusted free cash flow in 2020.

EPS was $0.77 per share, with adjusted EPS also at $0.77 per share, a 5 percent increase over the prior year.

Cash provided by operating activities was $570 million, a 3 percent increase versus the prior year.

Cash flow invested in acquisitions was $63 million, with the annual revenue acquired approximately $30 million.

Adjusted EBITDA was $723 million and adjusted EBITDA margin was 28.3 percent of revenue, consistent with the prior year.

Total Revenue
$2.55B
Previous year: $2.47B
+3.4%
EPS
$0.77
Previous year: $0.73
+5.5%
Gross Profit
$1B
Previous year: $965M
+4.1%
Cash and Equivalents
$282M
Previous year: $68M
+314.1%
Free Cash Flow
$267M
Previous year: $254M
+5.0%
Total Assets
$22.9B
Previous year: $21.8B
+5.2%

Republic Services

Republic Services

Republic Services Revenue by Segment

Forward Guidance

The Company is suspending its full-year 2020 detailed financial guidance. Assuming the economy continues to recover, we expect to generate over $1 billion of adjusted free cash flow in 2020.

Revenue & Expenses

Visualization of income flow from segment revenue to net income