NYSE$RSG

Republic Services Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Reported strong revenue growth driven by acquisitions and organic growth, with increased adjusted earnings per share.

Republic Services reported a strong third quarter with a 23% increase in total revenue, including approximately 12% growth from acquisitions. The company's EPS was $1.32, with an adjusted EPS of $1.34, a 20% increase over the prior year. They generated $2,383 million in cash flow from operations and $1,665 million in adjusted free cash flow year-to-date.

  • Total revenue growth of 22.6 percent includes 10.2 percent of organic growth and 12.4 percent of growth from acquisitions.
  • Third quarter revenue growth from average yield was 5.6 percent and volume increased revenue by 2.2 percent.
  • Third quarter EPS was $1.32 per share, and adjusted EPS, a non-GAAP measure, was $1.34 per share. Adjusted EPS increased 19.6 percent over the prior year.
  • Third quarter adjusted EBITDA was $1.1 billion and adjusted EBITDA margin was 29.2 percent of revenue.

Headline financials

Total Revenue

$4.15B

Previous: $3.46B+20.0%
EPS (adj)

$1.34

Previous: $1.11+20.7%
Adjusted EBITDA

$1.1B

Previous: $891M+23.5%
Adjusted EBITDA Margin

29.2%

Previous: 30.4%-3.9%
Net Income Margin

11.6%

No prior period
Capital Expenditures

-$925M

Previous: -$904M-2.3%
Free Cash Flow

-$508M

Previous: -$554M+8.3%
Net Income

$417M

Previous: $350M+19.0%
Operating Income

$664M

Previous: $564M+17.7%
Gross Profit

$1.96B

Previous: $1.72B+14.2%
Cash & Equivalents

$81.4M

Previous: $40.1M+103.0%
Total Assets

$28.4B

Previous: $24.4B+16.3%
Stock-Based Comp

$9.6M

Previous: $10.5M-8.6%

Revenue & EPS history

Republic Services · Revenue · Quarterly

$4.15B

Q3 2022+20%vs Q3 2021
Beat estimate in 12 of 15 quarters(80%)
ActualEstimate

Revenue by segment

Republic Services · $3.24B total across 3 segments · Q3 2022

  • Collection
    $2.43B+13.6%
  • Landfill (net)
    $412M+10.8%
  • Environmental Solutions (net)
    $397M+672.8%

Forward guidance

This press release contains certain forward-looking information about us that is intended to be covered by the safe harbor for “forward-looking statements” provided by the Private Securities Litigation Reform Act of 1995.

Tailwinds

  • Information about our plans, strategies and prospects.
  • Words such as “guidance,” “expect,” “will,” “may,” “anticipate,” “plan,” “estimate,” “project,” “intend,” “should,” “can,” “likely,” “could,” “outlook” and similar expressions are intended to identify forward-looking statements.
  • These statements include information about our plans, strategies and prospects.
  • Forward-looking statements are not guarantees of performance.
  • These statements are based upon the current beliefs and expectations of our management

Headwinds

  • The impacts of the overall global economy and increasing interest rates
  • Our ability to effectively integrate and manage companies we acquire, including US Ecology, and to realize the anticipated benefits of any such acquisitions
  • Acts of war, riots or terrorism, and the impact of these acts on economic, financial and social conditions in the United States
  • The effects of the COVID-19 pandemic and actions taken in response thereto
  • Our dependence on large, long-term collection, transfer and disposal contracts

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 Q3 2022

Historical avgQ3 2022

+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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