Republic Services, Inc. Reports Second Quarter Results
- Company reports earnings of $0.50 per share; $0.51 as adjusted
- Company reaffirms 2014 adjusted diluted earnings per share and adjusted free cash flow guidance
- Company announces 7.7 percent increase in its quarterly dividend
PHOENIX, July 24, 2014 /PRNewswire/ -- Republic Services, Inc. (NYSE: RSG) today reported net income of $179.0 million, or $0.50 per diluted share, for the three months ended June 30, 2014, versus $56.3 million, or $0.15 per diluted share, for the comparable 2013 period.
Republic's net income for the three months ended June 30, 2014 and 2013, includes certain expenses and benefits that impacted its results. A detail of these expenses and benefits is contained in the Reconciliation of Certain Non-GAAP Measures section of this document. Excluding these items, net income for the three months ended June 30, 2014 and 2013, would have been $181.8 million, or $0.51 per diluted share, and $156.7 million, or $0.43 per diluted share, respectively.

"We are pleased with our performance in the second quarter, which was in line with our expectations. Our results continue to demonstrate our ability to execute our growth and productivity initiatives," said Donald W. Slager, president and chief executive officer. "The entire Republic team remains focused on delivering an exceptional customer experience to drive improved Company performance and create shareholder value."

Excluding certain expenses and benefits recorded during the three months ended June 30, 2014 and 2013, as described in the Reconciliation of Certain Non-GAAP Measures section of this document, adjusted earnings before interest, taxes, depreciation, depletion, amortization and accretion (adjusted EBITDA) for the three months ended June 30, 2014, was $631.3 million, or 28.4 percent of revenue, compared to $582.1 million, or 27.6 percent of revenue, for the comparable 2013 period.

Revenue for the three months ended June 30, 2014, increased to $2,225.3 million from $2,111.7 million for the comparable 2013 period. This growth in revenue of 5.4 percent was made up of increases in average yield of 1.4 percent, fuel recovery fees of 0.2 percent, volume of 2.6 percent, recycled commodities of 0.6 percent and acquisitions, net of divestitures of 0.6 percent.

Six months ended June 30, 2014

For the six months ended June 30, 2014, net income was $311.5 million, or $0.87 per diluted share, versus $180.9 million, or $0.50 per diluted share, for the comparable 2013 period. On an adjusted basis, net income for the six months ended June 30, 2014 and 2013, would have been $336.1 million, or $0.94 per diluted share, and $324.1 million, or $0.89 per diluted share, respectively.

Republic's net income for the six months ended June 30, 2014 and 2013, includes certain expenses and benefits that impacted its results. A detail of these expenses and benefits is contained in the Reconciliation of Certain Non-GAAP Measures section of this document.

Excluding certain expenses and benefits recorded during the six months ended June 30, 2014 and 2013, as described in the Reconciliation of Certain Non-GAAP Measures section of this document, adjusted EBITDA for the six months ended June 30, 2014, was $1,206.1 million, or 28.1 percent of revenue, versus $1,151.2 million, or 28.0 percent of revenue, for the comparable 2013 period.

Revenue for the six months ended June 30, 2014, increased to $4,299.0 million from $4,110.3 million for the comparable 2013 period. This growth in revenue of 4.6 percent was made up of increases in average yield of 1.3 percent, fuel recovery fees of 0.1 percent, volume of 2.1 percent, recycled commodities of 0.5 percent and acquisitions, net of divestitures of 0.6 percent.

Fiscal Year 2014 Guidance

Republic reaffirmed its full year adjusted diluted earnings per share guidance of $1.93 to $1.98. A number of charges, other expenses and benefits are excluded from adjusted diluted earnings per share, as described in the 2014 Financial Guidance section of this document.

Republic also maintained its 2014 adjusted free cash flow guidance of $675 million to $725 million.

Dividend and Refinancing Activity

Republic announced today that its Board of Directors declared a regular quarterly dividend of $0.28 per share, an increase of 7.7 percent over the prior quarter, for stockholders of record on Oct. 1, 2014. The dividend will be paid on Oct. 15, 2014.

Additionally, last month the Company entered into a $1.25 billion unsecured revolving credit facility (the Replacement Credit Facility), which replaces Republic's $1.0 billion credit facility maturing in April 2016.  The Replacement Credit Facility will mature in June 2019. Republic also entered into Amendment No. 3 to the Company's existing $1.25 billion unsecured credit facility maturing in 2017, to reduce the commitments to $1.0 billion and conform certain terms with those of the Replacement Credit Facility.

"We are pleased to once again raise our quarterly dividend. We remain steadfast in our commitment to an effective cash utilization strategy, which includes investing in growth opportunities, acquisitions and increasing cash returns to our shareholders," added Slager. "Additionally, we leveraged favorable conditions in the capital markets to refinance our credit facilities. This enabled us to take advantage of lower interest rates, stagger the expiration dates of the facilities, as well as extend the maturity. We will continue to look for ways to best position Republic for growth opportunities and create long-term shareholder value."

About Republic Services

Republic Services, Inc. is an industry leader in the U.S. non-hazardous solid waste and recycling industry. Through its subsidiaries, Republic's collection companies, transfer stations, recycling centers and landfills focus on providing reliable environmental services and solutions for commercial, industrial, municipal and residential customers. Republic and its employees believe in protecting the planet and applying common sense solutions to customers' waste and recycling challenges.

Republic participates in investor presentations and conferences throughout the year. Interested parties can find a schedule of these conferences at republicservices.com by selecting "Calendar" on the investor relations page. Audio and other presentations from earnings calls and investor conferences are also available on the investor relations page of the website.