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​Republic Services 2020 results reflect strength, resolve and ability to persevere through challenges

Republic Mack electric curbside

Based on 2020 financial results just released, for Pheonix-based Republic Services Inc. the year included over $600 million in acquisitions, shareholder return of 10 percent, full-year revenue growth of 2.6 percent, and a $44/ton increase in average recycled commodity price per ton for the fourth quarter, over Q4 2019.

According to CEO Donald W. Slager, 2020 proved the resiliency of their business model and the power of the company's portfolio. 

"In the face of adversity, the Republic Services team remained focused on our priorities — putting our people first, keeping our facilities running smoothly and taking care of our customers," said Slager. "Republic again proved its strength, resolve and ability to persevere through a challenging environment. As a result, we outperformed our adjusted earnings and free cash flow targets and created sustainable value for our shareholders."

Republic Services fourth quarter and full-year highlights

-Fourth quarter EPS was $0.74 per share, and adjusted EPS, a non-GAAP measure, 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, a non-GAAP measure, 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.

-Full-year cash returned to shareholders through dividends and share repurchases was $621 million and total shareholder return was 10 percent.

-Full-year core price increased revenue by 4.8 percent. Core price consisted of 5.6 percent in the open market and 3.4 percent in the restricted portion of the business.

-Full-year revenue growth from average yield was 2.6 percent.

-Full-year adjusted EBITDA, a non-GAAP measure, was $2.99 billion and adjusted EBITDA margin was 29.4 percent, an increase of 130 basis points over the prior year.

-The Company's average recycled commodity price per ton sold during the fourth quarter was $110. This represents an increase of $44 per ton versus the prior year.

-Republic continued to convert CPI-based contracts to more favorable pricing mechanisms for the annual price adjustment.

-The Company now has approximately $874 million in annual revenue, or 35 percent of its legacy $2.5 billion CPI-based book of business, tied to the water-sewer-trash index or a fixed-rate increase of 3 percent or greater.

Company info

18500 N. Allied Way
Phoenix, AZ
US, 85054

Website:
republicservices.com

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