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Dec 31, 2019
Republic Services Q4 2019 Earnings Report
Reported fourth quarter and full-year results and provided 2020 full-year guidance.
Key Takeaways
Republic Services reported net income of $289.3 million, or $0.90 per diluted share, for the three months ended December 31, 2019. On an adjusted basis, net income for the three months ended December 31, 2019, was $291.7 million, or $0.91 per diluted share.
Fourth quarter EPS was $0.90 per share, and adjusted EPS was $0.91 per share, an increase of 14 percent over the prior year.
Full-year EPS was $3.33 per share, and adjusted EPS was $3.34 per share, an increase of 8 percent over the prior year.
Full-year cash provided by operating activities was $2.4 billion and adjusted free cash flow was $1.2 billion.
Full-year core price increased revenue by 4.7 percent.
Republic Services
Republic Services
Republic Services Revenue by Segment
Revenue by Segment
Collection Revenue
CapyFin.comLandfill (net) Revenue
CapyFin.comEnvironmental Solutions Revenue
CapyFin.comRecycling & Other Revenue
CapyFin.com Forward Guidance
Republic's financial guidance is based on current economic conditions and does not assume any significant changes in the overall economy in 2020.
Positive Outlook
- The Company expects adjusted diluted earnings per share to be in the range of $3.48 to $3.53.
- This guidance includes a benefit from CNG tax credits of approximately 4-cents.
- Republic expects adjusted free cash flow to be in the range of $1,175 million to $1,225 million.
- This guidance includes a net benefit from CNG tax credits of approximately $30 million.
- Republic expects an increase in revenue of 4.25 to 5.00 percent.
Challenges Ahead
- Republic expects an effective tax rate of approximately 21 percent
- The Company anticipates receiving $1.2 billion of property and equipment, net of proceeds from the sale of property and equipment.
- Republic expects adjusted EBITDA margin to expand by approximately 20 to 40 basis points.
- The Company expects an effective tax rate of approximately 21 percent and a non-cash charge of approximately $110 million related to solar energy investments that qualify for tax credits.
- The charge will be recorded as a loss from unconsolidated equity method investments.
Revenue & Expenses
Visualization of income flow from segment revenue to net income