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Dec 31, 2021
Republic Services Q4 2021 Earnings Report
Republic Services reported strong Q4 2021 results, with revenue growth of 15% and adjusted EPS of $1.02.
Key Takeaways
Republic Services reported net income of $313.1 million, or $0.98 per diluted share, for the three months ended December 31, 2021. On an adjusted basis, net income for the three months ended December 31, 2021 was $325.5 million, or $1.02 per diluted share.
Fourth quarter EPS was $0.98 per share, and adjusted EPS, a non-GAAP measure, was $1.02 per share.
Fourth quarter revenue growth from average yield was 3.4 percent and volume increased 3.6 percent.
Fourth quarter core price increased revenue by 5.4 percent.
The Company's average recycled commodity price per ton sold during the fourth quarter was $218.
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 expects to deliver another strong year of earnings and free cash flow in 2022 through outsized revenue growth, margin expansion and free cash flow conversion improvement.
Positive Outlook
- Adjusted Diluted Earnings per Share: The Company expects adjusted diluted earnings per share to be in the range of $4.58 to $4.65.
- Adjusted Free Cash Flow: Republic expects adjusted free cash flow to be in the range of $1,625 million to $1,675 million.
- Republic expects an increase in average yield of approximately 3.4%.
- Republic expects volume growth to be in the range of 1.5% to 2.0%.
- Republic expects adjusted EBITDA margin to expand over full-year 2021 performance by approximately 30 to 40 basis points.
Challenges Ahead
- Republic's financial guidance is based on current economic conditions and does not assume any significant changes in the overall economy in 2022.
- Republic's financial guidance does not contemplate the impact from the pending acquisition of US Ecology, Inc. which is subject to regulatory and other approvals.
- The Company expects to invest at least $500 million in acquisitions.
- The Company expects to invest $175 million in solar energy investments that qualify for tax credits.
- Adjusted free cash flow does not represent our cash flow available for discretionary payments because it excludes certain payments that are required or to which we have committed, such as debt service requirements and dividend payments.
Revenue & Expenses
Visualization of income flow from segment revenue to net income