NYSE$RSG

Republic Services Inc · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Reported fourth quarter earnings and provided full-year results.

Republic Services reported Q4 earnings with an EPS of $0.74 and adjusted EPS of $1.00, a 14% increase over the prior year. The company generated approximately $2.5 billion of cash flow from operations and over $1.2 billion of adjusted free cash flow in 2020. They also outperformed their adjusted free cash flow and EPS guidance and expanded adjusted EBITDA margin by 130 basis points over 2019 full year results.

  • Fourth quarter EPS was $0.74 per share, and adjusted EPS was $1.00 per share, an increase of 14 percent over the prior year.
  • Full-year EPS was $3.02 per share, and adjusted EPS was $3.56 per share, an increase of 8 percent over the prior year. Adjusted EPS exceeded the Company's full-year guidance.
  • Full-year cash provided by operating activities was $2.47 billion and adjusted free cash flow was $1.24 billion. Adjusted free cash flow exceeded the Company's full-year guidance.
  • Republic invested $613 million in acquisitions, or $580 million net of divestitures.

Headline financials

Total Revenue

$2.57B

Previous: $2.58B-0.2%
EPS (adj)

$1.00

Previous: $0.91+9.9%
Adjusted EBITDA

$768M

No prior period
Adjusted EBITDA Margin

29.4%

No prior period
Capital Expenditures

$306M

Previous: $299M+2.3%
Free Cash Flow

$1.24B

Previous: $266M+363.9%
Net Income

$236M

Previous: $289M-18.6%
Operating Income

$433M

Previous: $459M-5.8%
Gross Profit

$1.03B

Previous: $1.03B-0.6%
Cash & Equivalents

$38.2M

Previous: $47.1M-18.9%
Total Assets

$23.4B

Previous: $22.7B+3.3%
Stock-Based Comp

$8.3M

Previous: $10.3M-19.4%

Revenue & EPS history

Republic Services · Revenue · Quarterly

$2.57B

Q4 2020-0.2%vs Q4 2019
Beat estimate in 16 of 16 quarters(100%)
ActualEstimate

Revenue by segment

Republic Services · $2.28B total across 3 segments · Q4 2020

  • Collection
    $1.93B-0.9%
  • Landfill (net)
    $324M-0.7%
  • Environmental Solutions (net)
    $26.7M-44.5%

Forward guidance

Republic expects to achieve the highest levels of adjusted earnings and free cash flow in the Company’s history in 2021.

Tailwinds

  • Adjusted Diluted Earnings per Share: The Company expects adjusted diluted earnings per share to be in the range of $3.65 to $3.73.
  • Adjusted Free Cash Flow: Republic expects adjusted free cash flow to be in the range of $1,300 million to $1,375 million.
  • Revenue: Republic expects an increase in average yield of approximately 2.5% and volume growth to be in the range of 1.5% to 2.0%.
  • Adjusted EBITDA Margin: Republic expects adjusted EBITDA margin of approximately 29.5%.
  • Acquisitions & Investments: Republic expects to invest approximately $600 million in acquisitions and $125 million in solar energy investments that qualify for tax credits.

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 2020

Historical avgQ4 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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