NYSE$RSG

Republic Services Inc · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Reported strong first quarter results with adjusted earnings increasing by 5 percent over the prior year.

Republic Services reported a solid start to the year despite the impact of the pandemic in March. Revenue and adjusted EBITDA both increased by 3.4 percent, and the underlying adjusted EBITDA margin expanded by 30 basis points. The company is suspending its full-year 2020 detailed financial guidance due to the uncertainty of COVID-19 pandemic. However, assuming the economy continues to recover, the company expects to generate over $1 billion of adjusted free cash flow in 2020.

  • EPS was $0.77 per share, with adjusted EPS also at $0.77 per share, a 5 percent increase over the prior year.
  • Cash provided by operating activities was $570 million, a 3 percent increase versus the prior year.
  • Cash flow invested in acquisitions was $63 million, with the annual revenue acquired approximately $30 million.
  • Adjusted EBITDA was $723 million and adjusted EBITDA margin was 28.3 percent of revenue, consistent with the prior year.

Headline financials

Total Revenue

$3.02B

Previous: $2.91B+3.8%
EPS (adj)

$0.77

Previous: $0.73+5.5%
Adjusted EBITDA

$723M

No prior period
Adjusted EBITDA Margin

28.3%

No prior period
Capital Expenditures

-$347M

Previous: -$299M-15.9%
Free Cash Flow

-$101M

Previous: -$65.1M-54.4%
Net Income

$246M

Previous: $234M+5.2%
Operating Income

$433M

Previous: $423M+2.4%
Gross Profit

$1.47B

Previous: $1.4B+4.8%
Cash & Equivalents

$282M

Previous: $68M+314.1%
Total Assets

$22.9B

Previous: $21.8B+5.2%
Stock-Based Comp

$9.9M

Previous: $11.1M-10.8%

Revenue & EPS history

Republic Services · Revenue · Quarterly

$3.02B

Q1 2020+3.8%vs Q1 2019
Beat estimate in 16 of 16 quarters(100%)
ActualEstimate

Revenue by segment

Republic Services · $2.43B total across 4 segments · Q1 2020

  • Collection
    $1.94B
  • Landfill (net)
    $306M
  • Transfer (net)
    $137M+11.5%
  • Environmental Solutions (net)
    $46.8M

Forward guidance

The Company is suspending its full-year 2020 detailed financial guidance. Assuming the economy continues to recover, we expect to generate over $1 billion of adjusted free cash flow in 2020.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

+0.6%

Avg return

Earnings day

+1.1%

Avg return

5 days after

+3.0%

Avg return

30 days after

60%

44 / 73 earnings

Positive

+5.9%

Q4 2013

Best reaction

-6.6%

Q3 2012

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.8%+1.1%+4.5%
Q4 2025+0.4%+0.0%-0.9%
Q3 2025-2.1%-1.7%+3.4%
Q2 2025-0.4%+0.2%+1.0%
Q1 2025+1.2%+4.1%+5.0%
Q4 2024+3.1%+2.3%+3.3%
Q3 2024-0.8%-0.9%+8.9%
Q2 2024-4.9%-3.5%+3.6%
Q1 2024-3.8%-4.1%-5.9%
Q4 2023+0.6%-0.7%+3.6%
Q3 2023-1.1%+0.6%+8.7%
Q2 2023+0.4%-2.0%-3.7%
Q1 2023+5.4%+5.6%+2.8%
Q4 2022+4.1%+5.7%+4.7%
Q3 2022-0.3%-1.8%+2.4%
Q2 2022+1.1%+1.7%+1.7%
Q1 2022+1.2%-3.3%+0.6%
Q4 2021-5.8%-7.2%-0.9%
Q3 2021+4.2%+3.9%+4.6%
Q2 2021+2.6%+3.8%+7.1%
Q1 2021+1.9%+3.1%+0.5%
Q4 2020-1.8%-1.7%+8.4%
Q3 2020+3.4%+8.7%+1.9%
Q2 2020+4.7%+5.1%+8.1%
Q1 2020+1.7%+5.3%+12.5%
Q4 2019+2.0%+1.8%-13.7%
Q3 2019-0.4%-1.9%+0.9%
Q2 2019+4.1%+3.2%+0.8%
Q1 2019+1.6%+4.4%+6.6%
Q4 2018-0.9%+0.3%+0.7%
Q3 2018+1.0%+4.0%+9.6%
Q2 2018+2.7%+2.7%+3.7%
Q1 2018+3.9%+5.1%+5.1%
Q4 2017-4.1%-2.0%+6.7%
Q3 2017-1.0%-0.6%-0.5%
Q2 2017-0.8%-0.3%-0.7%
Q1 2017-0.4%+0.2%-0.3%
Q4 2016+2.8%+3.6%+7.2%
Q3 2016+1.3%+0.0%+8.5%
Q2 2016-0.8%-1.4%-2.2%
Q1 2016+1.2%
Q4 2015-0.2%
Q3 2015+0.1%
Q2 2015+2.3%
Q1 2015+3.7%
Q4 2014-3.2%
Q3 2014-2.4%
Q2 2014+0.9%
Q1 2014-1.3%
Q4 2013+5.9%
Q3 2013+3.0%
Q2 2013-2.4%
Q1 2013+3.3%
Q4 2012-1.4%
Q3 2012-6.6%
Q2 2012+3.9%
Q1 2012-0.1%
Q4 2011+0.1%
Q3 2011-3.6%
Q2 2011+0.0%
Q1 2011-0.1%
Q4 2007-1.4%
Q4 2010-1.4%
Q3 2010-5.0%
Q2 2010+1.5%
Q1 2009+4.7%
Q1 2010+0.2%
Q4 2009+1.7%
Q3 2008+3.2%
Q3 2009+3.2%
Q2 2009+2.6%
Q4 2008+2.6%
Q2 2008+2.6%

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