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Sep 30, 2022

Republic Services Q3 2022 Earnings Report

Reported strong revenue growth driven by acquisitions and organic growth, with increased adjusted earnings per share.

Key Takeaways

Republic Services reported a strong third quarter with a 23% increase in total revenue, including approximately 12% growth from acquisitions. The company's EPS was $1.32, with an adjusted EPS of $1.34, a 20% increase over the prior year. They generated $2,383 million in cash flow from operations and $1,665 million in adjusted free cash flow year-to-date.

Total revenue growth of 22.6 percent includes 10.2 percent of organic growth and 12.4 percent of growth from acquisitions.

Third quarter revenue growth from average yield was 5.6 percent and volume increased revenue by 2.2 percent.

Third quarter EPS was $1.32 per share, and adjusted EPS, a non-GAAP measure, was $1.34 per share. Adjusted EPS increased 19.6 percent over the prior year.

Third quarter adjusted EBITDA was $1.1 billion and adjusted EBITDA margin was 29.2 percent of revenue.

Total Revenue
$3.6B
Previous year: $2.93B
+22.6%
EPS
$1.34
Previous year: $1.11
+20.7%
Gross Profit
$1.41B
Previous year: $1.19B
+18.1%
Cash and Equivalents
$81.4M
Previous year: $40.1M
+103.0%
Free Cash Flow
$542M
Previous year: $359M
+50.9%
Total Assets
$28.4B
Previous year: $24.4B
+16.3%

Republic Services

Republic Services

Republic Services Revenue by Segment

Forward Guidance

This press release contains certain forward-looking information about us that is intended to be covered by the safe harbor for “forward-looking statements” provided by the Private Securities Litigation Reform Act of 1995.

Positive Outlook

  • Information about our plans, strategies and prospects.
  • Words such as “guidance,” “expect,” “will,” “may,” “anticipate,” “plan,” “estimate,” “project,” “intend,” “should,” “can,” “likely,” “could,” “outlook” and similar expressions are intended to identify forward-looking statements.
  • These statements include information about our plans, strategies and prospects.
  • Forward-looking statements are not guarantees of performance.
  • These statements are based upon the current beliefs and expectations of our management

Challenges Ahead

  • The impacts of the overall global economy and increasing interest rates
  • Our ability to effectively integrate and manage companies we acquire, including US Ecology, and to realize the anticipated benefits of any such acquisitions
  • Acts of war, riots or terrorism, and the impact of these acts on economic, financial and social conditions in the United States
  • The effects of the COVID-19 pandemic and actions taken in response thereto
  • Our dependence on large, long-term collection, transfer and disposal contracts

Revenue & Expenses

Visualization of income flow from segment revenue to net income