NYSE$RSG

Republic Services Inc · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Reported fourth quarter and full-year results and provided 2020 full-year guidance.

Republic Services reported net income of $289.3 million, or $0.90 per diluted share, for the three months ended December 31, 2019. On an adjusted basis, net income for the three months ended December 31, 2019, was $291.7 million, or $0.91 per diluted share.

  • Fourth quarter EPS was $0.90 per share, and adjusted EPS was $0.91 per share, an increase of 14 percent over the prior year.
  • Full-year EPS was $3.33 per share, and adjusted EPS was $3.34 per share, an increase of 8 percent over the prior year.
  • Full-year cash provided by operating activities was $2.4 billion and adjusted free cash flow was $1.2 billion.
  • Full-year core price increased revenue by 4.7 percent.

Headline financials

Total Revenue

$2.58B

Previous: $2.53B+1.9%
EPS (adj)

$0.91

Previous: $0.80+13.7%
Capital Expenditures

$299M

Previous: $251M+18.9%
Free Cash Flow

$266M

Previous: $245M+8.9%
Net Income

$289M

Previous: $301M-3.9%
Operating Income

$459M

Previous: $483M-5.0%
Gross Profit

$1.03B

Previous: $1B+2.8%
Cash & Equivalents

$47.1M

Previous: $70.5M-33.2%
Total Assets

$22.7B

Previous: $21.6B+4.9%
Stock-Based Comp

$10.3M

Previous: $9.6M+7.3%

Revenue & EPS history

Republic Services · Revenue · Quarterly

$2.58B

Q4 2019+1.9%vs Q4 2018
Beat estimate in 16 of 16 quarters(100%)
ActualEstimate

Revenue by segment

Republic Services · $2.32B total across 3 segments · Q4 2019

  • Collection
    $1.94B
  • Landfill (net)
    $326M
  • Environmental Solutions (net)
    $48.1M

Forward guidance

Republic's financial guidance is based on current economic conditions and does not assume any significant changes in the overall economy in 2020.

Tailwinds

  • The Company expects adjusted diluted earnings per share to be in the range of $3.48 to $3.53.
  • This guidance includes a benefit from CNG tax credits of approximately 4-cents.
  • Republic expects adjusted free cash flow to be in the range of $1,175 million to $1,225 million.
  • This guidance includes a net benefit from CNG tax credits of approximately $30 million.
  • Republic expects an increase in revenue of 4.25 to 5.00 percent.

Headwinds

  • Republic expects an effective tax rate of approximately 21 percent
  • The Company anticipates receiving $1.2 billion of property and equipment, net of proceeds from the sale of property and equipment.
  • Republic expects adjusted EBITDA margin to expand by approximately 20 to 40 basis points.
  • The Company expects an effective tax rate of approximately 21 percent and a non-cash charge of approximately $110 million related to solar energy investments that qualify for tax credits.
  • The charge will be recorded as a loss from unconsolidated equity method investments.

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 Q4 2019

Historical avgQ4 2019

+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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