Republic Services Inc · Q3 2020 earnings

Briefing

Republic Services reported an increase in adjusted EBITDA margin and double-digit growth in adjusted earnings and adjusted free cash flow.

Republic Services reported net income of $260.0 million, or $0.81 per diluted share, for the three months ended September 30, 2020. On an adjusted basis, net income was $319.3 million, or $1.00 per diluted share. The company expanded adjusted EBITDA margin by 230 basis points and raised its full-year adjusted free cash flow guidance while reinstating full-year adjusted EPS guidance. The board authorized $2 billion for share repurchases.

• Third quarter EPS was $0.81 per share; adjusted EPS was $1.00 per share, an increase of approximately 11 percent over the prior year.
• Third quarter core price increased revenue by 4.5 percent, which consisted of 5.4 percent in the open market and 3.2 percent in the restricted portion of the business.
• Third quarter adjusted EBITDA was $781 million, an increase of $41 million versus the prior year.
• Third quarter adjusted EBITDA margin was 30.3 percent of revenue, increasing 230 basis points over the prior year, including a 70 basis point benefit from higher recycled commodity prices and lower fuel costs.

Headline financials

Revenue & EPS history

Republic reinstated its full-year 2020 adjusted EPS guidance, expecting to generate $3.37 - $3.40. The Company now expects to generate $1.15 billion to $1.20 billion of adjusted free cash flow for the full year, assuming continued gradual improvement in economic activity through the remainder of the year.