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Republic Services
🇺🇸 NYSE:RSG
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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.

Total Revenue
$2.58B
Previous year: $2.53B
+1.9%
EPS
$0.91
Previous year: $0.8
+13.7%
Gross Profit
$1.03B
Previous year: $1B
+2.8%
Cash and Equivalents
$47.1M
Previous year: $70.5M
-33.2%
Free Cash Flow
$266M
Previous year: $245M
+8.9%
Total Assets
$22.7B
Previous year: $21.6B
+4.9%

Republic Services

Republic Services

Republic Services Revenue by Segment

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

Company Overview

Full financial data and analysis

View Republic Services