NYSE$RSG

Republic Services Inc · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Republic Services reported strong Q4 2021 results, with revenue growth of 15% and adjusted EPS of $1.02.

Republic Services reported net income of $313.1 million, or $0.98 per diluted share, for the three months ended December 31, 2021. On an adjusted basis, net income for the three months ended December 31, 2021 was $325.5 million, or $1.02 per diluted share.

  • Fourth quarter EPS was $0.98 per share, and adjusted EPS, a non-GAAP measure, was $1.02 per share.
  • Fourth quarter revenue growth from average yield was 3.4 percent and volume increased 3.6 percent.
  • Fourth quarter core price increased revenue by 5.4 percent.
  • The Company's average recycled commodity price per ton sold during the fourth quarter was $218.

Headline financials

Total Revenue

$2.95B

Previous: $2.57B+14.8%
EPS (adj)

$1.02

Previous: $1.00+2.0%
Adjusted EBITDA

$830M

Previous: $768M+8.0%
Capital Expenditures

$412M

Previous: $306M+34.8%
Free Cash Flow

$237M

Previous: $1.24B-80.8%
Net Income

$313M

Previous: $236M+33.0%
Operating Income

$502M

Previous: $433M+15.9%
Gross Profit

$1.14B

Previous: $1.03B+11.4%
Cash & Equivalents

$29M

Previous: $38.2M-24.1%
Total Assets

$25B

Previous: $23.4B+6.5%
Stock-Based Comp

$7.9M

Previous: $8.3M-4.8%

Revenue & EPS history

Republic Services · Revenue · Quarterly

$2.95B

Q4 2021+14.8%vs Q4 2020
Beat estimate in 16 of 16 quarters(100%)
ActualEstimate

Revenue by segment

Republic Services · $2.6B total across 3 segments · Q4 2021

  • Collection
    $2.15B+11.4%
  • Landfill (net)
    $360M+11.3%
  • Environmental Solutions (net)
    $91.7M+243.4%

Forward guidance

Republic expects to deliver another strong year of earnings and free cash flow in 2022 through outsized revenue growth, margin expansion and free cash flow conversion improvement.

Tailwinds

  • Adjusted Diluted Earnings per Share: The Company expects adjusted diluted earnings per share to be in the range of $4.58 to $4.65.
  • Adjusted Free Cash Flow: Republic expects adjusted free cash flow to be in the range of $1,625 million to $1,675 million.
  • Republic expects an increase in average yield of approximately 3.4%.
  • Republic expects volume growth to be in the range of 1.5% to 2.0%.
  • Republic expects adjusted EBITDA margin to expand over full-year 2021 performance by approximately 30 to 40 basis points.

Headwinds

  • Republic's financial guidance is based on current economic conditions and does not assume any significant changes in the overall economy in 2022.
  • Republic's financial guidance does not contemplate the impact from the pending acquisition of US Ecology, Inc. which is subject to regulatory and other approvals.
  • The Company expects to invest at least $500 million in acquisitions.
  • The Company expects to invest $175 million in solar energy investments that qualify for tax credits.
  • Adjusted free cash flow does not represent our cash flow available for discretionary payments because it excludes certain payments that are required or to which we have committed, such as debt service requirements and dividend payments.

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 2021

Historical avgQ4 2021

+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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